Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of the components of the provision (benefit) for income taxes

The components of the provision (benefit) for income taxes for each of the three years in the period ended December 31, 2023 are as follows:

	Year ended December 31,
	2023		2022		2021
Current
Federal	$	561	$	(34)	$	78
Foreign	66		100		26
State and local	125		94		88
	752		160		192
Deferred
Federal	5		525		260
Foreign	13		(16)		14
State and local	17		28		(6)
	35		537		268
Total	$	787	$	697	$	460

Schedule of effective income tax rate reconciliation

A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rate of 21 percent to the income before provision (benefit) for income taxes for each of the three years in the period ended December 31, 2023 is as follows:

	Year ended December 31,
	2023		2022		2021
Computed tax at statutory tax rate	$	674	$	588	$	388
State income taxes, net of federal tax benefit	116		102		64
Other permanent items	(3)		18		1
Change in federal valuation allowance	(15)		15		—
Foreign restructuring (1)	—		(37)		—
Foreign tax rate differential	15		11		7
Total	$	787	$	697	$	460

 

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(1)    Reflects the impact of aligning the legal entity structure in Australia and New Zealand with our other foreign operations, which resulted in a tax depreciation benefit.

Schedule of deferred tax assets and liabilities

The components of deferred income tax assets (liabilities) are as follows:

	December 31, 2023		December 31, 2022
Reserves and allowances	$	193	$	186
Debt cancellation and other	17		18
Net operating loss and credit carryforwards	97		171
Interest carryforward (1)	—		84
Operating lease assets	287		216
Total deferred tax assets	594		675
Less: valuation allowance (2)	(4)		(19)
Total net deferred tax assets	590		656
Property and equipment, including rental equipment	(2,921)		(2,986)
Operating lease liabilities	(285)		(216)
Intangibles	(85)		(125)
Total deferred tax liability	(3,291)		(3,327)
Total net deferred tax liability	$	(2,701)	$	(2,671)

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(1)    Relates to the limitation of deductible interest, and is primarily due to tax depreciation benefits associated with the Ahern Rentals acquisition (see note 6 to the consolidated financial statements for further discussion of the tax depreciation benefits).

(2)    Relates to federal foreign tax credits, state net operating loss carryforwards and state tax credits that may not be realized.

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to unrecognized tax benefits, some of which would impact our effective tax rate if recognized:

	2023		2022		2021
Balance at January 1	$	16	$	13	$	12
Additions for tax positions related to the current year	3		1		2
Additions for tax positions of prior years	8		7		—
Settlements	(1)		(5)		(1)
Balance at December 31	$	26	$	16	$	13