Acquisitions (Tables)

12 Months Ended

Dec. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of assets acquired and liabilities assumed

The following table summarizes the fair values of the assets acquired and liabilities assumed.

Inventory	$	20
Rental equipment	1,232
Property and equipment	186
Intangible assets (1)	428
Operating lease right-of-use assets	211
Other assets	10
Total identifiable assets acquired	2,087
Accounts payable, accrued expenses and other liabilities	(24)
Operating lease liabilities	(199)
Debt (finance leases)	(38)
Total liabilities assumed	(261)
Net identifiable assets acquired	1,826
Goodwill (2)	162
Net assets acquired	$	1,988

(1)The following table reflects the fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments:

.

	Fair value		Life (years)
Customer relationships	$	330	9
Non-compete agreements	98		5
Total	$	428

(2)All of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the acquisition is primarily reflective of Ahern Rentals' going-concern value, the value of Ahern Rentals' assembled workforce and new customer relationships expected to arise from the acquisition. All of the goodwill is expected to be deductible for income tax purposes (because the acquisition is a purchase of assets, the goodwill that is deductible for income tax purposes equals the total acquired goodwill).

Finite-lived and indefinite-lived intangible assets acquired as part of business combination

The following table reflects the fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments:

.

	Fair value		Life (years)
Customer relationships	$	330	9
Non-compete agreements	98		5
Total	$	428

Summary of pro forma information

The table below presents unaudited pro forma consolidated income statement information as if Ahern Rentals had been included in our consolidated results for the entire period reflected:

	Year Ended
	December 31,
	2022
United Rentals historic revenues	$	11,642
Ahern Rentals historic revenues	827
Pro forma revenues	12,469
United Rentals historic pretax income	$	2,802
Ahern Rentals historic pretax income	2
Combined pretax income	2,804
Pro forma adjustments to combined pretax income:
Impact of fair value mark-ups/useful life changes on depreciation (1)	(94)
Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales (2)	(28)
Intangible asset amortization (3)	(78)
Interest expense (4)	(96)
Elimination of historic interest (5)	53
Elimination of historic legal and financing costs (6)	11
Pro forma pretax income	$	2,572

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(1) Depreciation of rental equipment and non-rental depreciation were adjusted for the fair value mark-ups, and the changes in useful lives and salvage values, of the equipment acquired in the Ahern Rentals acquisition.

(2) Cost of rental equipment sales was adjusted for the fair value mark-ups, and the changes in useful lives and salvage values, of rental equipment acquired in the Ahern Rentals acquisition.

(3) Intangible asset amortization was adjusted to include amortization of the acquired intangible assets.

(4) As discussed above, the acquisition and related fees and expenses were funded through the issuance of senior notes and drawings on our ABL facility. Interest expense was adjusted to reflect interest on the debt used to finance the acquisition.

(5) Historic interest on debt that is not part of the combined entity was eliminated.

(6) Reflects legal and financing costs incurred by Ahern Rentals that do not relate to the combined entity (specifically, legal costs related to a particular lawsuit and costs related to an attempted financing).