Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

Our reportable segments are i) general rentals and ii) specialty. For general rentals, the divisions discussed below, which are our operating segments, are aggregated into the reportable segment. The specialty segment is a single division that is both an operating segment and a reportable segment. We believe that the divisions that are aggregated into our reportable segments have similar economic characteristics, as each division is capital intensive, offers similar products to similar customers, uses similar methods to distribute its products, and is subject to similar competitive risks. The aggregation of our divisions also reflects the management structure that we use for making operating decisions and assessing performance. We evaluate segment performance primarily based on segment equipment rentals gross profit.

The general rentals segment includes the rental of i) general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, ii) aerial work platforms, such as boom lifts and scissor lifts and iii) general tools and light equipment, such as pressure washers, water pumps and power tools. The general rentals segment reflects the aggregation of four geographic divisions—Central, Northeast, Southeast and West—and operates throughout the United States and Canada.

The specialty segment, which, as noted above, is a single division that is both an operating segment and a reportable segment, rents products (and provides setup and other services on such rented equipment) including i) trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, ii) power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment, iii) fluid solutions equipment primarily used for fluid containment, transfer and treatment, iv) mobile storage equipment and modular office space and v) surface protection mats. The specialty segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment primarily operates in the United States and Canada, and has a limited presence in Europe, Australia and New Zealand.

The following tables set forth financial information by segment.

	General rentals		Specialty		Total
Three Months Ended March 31, 2024
Equipment rentals	$	2,070	$	859	$	2,929
Sales of rental equipment	346		37		383
Sales of new equipment	29		19		48
Contractor supplies sales	20		16		36
Service and other revenues	81		8		89
Total revenue	2,546		939		3,485
Depreciation and amortization expense	574		112		686
Equipment rentals gross profit	681		422		1,103
Capital expenditures (1)	506		147		653
Three Months Ended March 31, 2023
Equipment rentals	$	2,018	$	722	$	2,740
Sales of rental equipment	350		38		388
Sales of new equipment	18		26		44
Contractor supplies sales	21		13		34
Service and other revenues	72		7		79
Total revenue	2,479		806		3,285
Depreciation and amortization expense	577		116		693
Equipment rentals gross profit	663		340		1,003
Capital expenditures (1)	683		187		870

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(1)The condensed consolidated statements of cash flows include the payments for capital expenditures, while the table above reflects the gross capital expenditures. Accounts payable as of March 31, 2024 and December 31, 2023 included $158 and

$74, respectively, of amounts due but unpaid for purchases of rental equipment. The net impact of accrued purchases of rental equipment was not material for the three months ended March 31, 2023.

	March 31, 2024		December 31, 2023
Total reportable segment assets
General rentals	$	20,203	$	20,411
Specialty (1)	6,455		5,178
Total assets	$	26,658	$	25,589

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(1)The increase in the specialty segment assets primarily reflects the impact of the Yak acquisition discussed in note 3 to the condensed consolidated financial statements.  

Equipment rentals gross profit is the primary measure management reviews to make operating decisions and assess segment performance. The following is a reconciliation of equipment rentals gross profit to income before provision for income taxes:

	Three Months Ended
	March 31,
	2024		2023
Total equipment rentals gross profit	$	1,103	$	1,003
Gross profit from other lines of business	243		238
Selling, general and administrative expenses	(389)		(382)
Restructuring charge (1)	(1)		(1)
Non-rental depreciation and amortization	(104)		(118)
Interest expense, net	(160)		(150)
Other income, net	3		4
Income before provision for income taxes	$	695	$	594

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(1)Primarily reflects severance and branch closure charges associated with our restructuring programs. The restructuring charges generally involve the closure of a large number of branches over a short period of time, often in periods following a major acquisition. As of March 31, 2024, there were no open restructuring programs.