Condensed Consolidating Financial Information Of Guarantor Subsidiaries

9 Months Ended

Sep. 30, 2011

Condensed Consolidating Financial Information Of Guarantor Subsidiaries

Condensed Consolidating Financial Information Of Guarantor Subsidiaries

9. Condensed Consolidating Financial Information of Guarantor Subsidiaries

URNA is 100 percent owned by Holdings ("Parent") and has outstanding (i) certain indebtedness that is guaranteed by Parent and (ii) certain indebtedness that is guaranteed by both Parent and, with the exception of its U.S. special purpose vehicle (the "SPV") which holds receivable assets relating to the Company's accounts receivable securitization, all of URNA's U.S. subsidiaries (the "guarantor subsidiaries"). However, this indebtedness is not guaranteed by URNA's foreign subsidiaries and the SPV (together, the "non-guarantor subsidiaries"). The guarantor subsidiaries are all 100 percent-owned and the guarantees are made on a joint and several basis and are full and unconditional (subject to subordination provisions and subject to a standard limitation which provides that the maximum amount guaranteed by each guarantor will not exceed the maximum amount that can be guaranteed without making the guarantee void under fraudulent conveyance laws). Separate consolidated financial statements of the guarantor subsidiaries have not been presented because management believes that such information would not be material to investors. However, condensed consolidating financial information is presented. The condensed consolidating financial information of Parent and its subsidiaries is as follows:

CONDENSED CONSOLIDATING BALANCE SHEET

September 30, 2011

	Parent		URNA			Guarantor Subsidiaries		Non-Guarantor Subsidiaries					Eliminations			Total
								Foreign			SPV
ASSETS
Cash and cash equivalents	$	—	$	4		$	—	$	22		$	—	$	—		$	26
Accounts receivable, net		—		8			9		98			338		—			453
Intercompany receivable (payable)		112		(849	)		747		(149	)		—		139			—
Inventory		—		31			17		8			—		—			56
Prepaid expenses and other assets		—		49			2		17			—		—			68
Deferred taxes		—		50			4		1			—		—			55
Total current assets		112		(707	)		779		(3	)		338		139			658
Rental equipment, net		—		1,312			849		426			—		—			2,587
Property and equipment, net		43		175			126		27			—		—			371
Investments in subsidiaries		217		2,077			436		—			—		(2,730	)		—
Goodwill and other intangibles, net		—		97			101		134			—		—			332
Other long-term assets		7		50			—		—			—		—			57
Total assets	$	379	$	3,004		$	2,291	$	584		$	338	$	(2,591	)	$	4,005
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Short-term debt and current maturities of long-term debt	$	127	$	2		$	—	$	3		$	269	$	—		$	401
Accounts payable		—		129			69		35			—		—			233
Accrued expenses and other liabilities		39		125			43		38			—		—			245
Total current liabilities		166		256			112		76			269		—			879
Long-term debt		—		2,365			139		25			—		—			2,529
Subordinated convertible debentures		87		—			—		—			—		—			87
Deferred taxes		16		163			171		47			—		—			397
Other long-term liabilities		55		3			—		—			—		—			58
Total liabilities		324		2,787			422		148			269		—			3,950
Temporary equity (note 6)		41		—			—		—			—		—			41
Total stockholders' equity (deficit)		14		217			1,869		436			69		(2,591	)		14
Total liabilities and stockholders' equity (deficit)	$	379	$	3,004		$	2,291	$	584		$	338	$	(2,591	)	$	4,005

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2010

	Parent			URNA			Guarantor Subsidiaries		Non-Guarantor Subsidiaries					Eliminations			Total
									Foreign			SPV
ASSETS
Cash and cash equivalents	$	—		$	4		$	—	$	199		$	—	$	—		$	203
Accounts receivable, net		—			5			6		73			293		—			377
Intercompany receivable (payable)		115			(837	)		735		(155	)		—		142			—
Inventory		—			19			13		7			—		—			39
Prepaid expenses and other assets		—			31			4		2			—		—			37
Deferred taxes		—			65			3		1			—		—			69
Total current assets		115			(713	)		761		127			293		142			725
Rental equipment, net		—			1,243			742		295			—		—			2,280
Property and equipment, net		43			186			136		28			—		—			393
Investments in subsidiaries		173			2,018			414		—			—		(2,605	)		—
Goodwill and other intangibles, net		—			99			83		45			—		—			227
Other long-term assets		8			60			—		—			—		—			68
Total assets	$	339		$	2,893		$	2,136	$	495		$	293	$	(2,463	)	$	3,693
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Short-term debt and current maturities of long-term debt	$	—		$	8		$	—	$	—		$	221	$	—		$	229
Accounts payable		—			83			26		23			—		—			132
Accrued expenses and other liabilities		37			146			—		25			—		—			208
Total current liabilities		37			237			26		48			221		—			569
Long-term debt		124			2,306			146		—			—		—			2,576
Subordinated convertible debentures		124			—			—		—			—		—			124
Deferred taxes		17			175			160		33			—		—			385
Other long-term liabilities		57			2			—		—			—		—			59
Total liabilities		359			2,720			332		81			221		—			3,713
Total stockholders' (deficit) equity		(20	)		173			1,804		414			72		(2,463	)		(20	)
Total liabilities and stockholders' (deficit) equity	$	339		$	2,893		$	2,136	$	495		$	293	$	(2,463	)	$	3,693

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended September 30, 2011

	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
										Foreign		SPV
Revenues:
Equipment rentals	$	—		$	284		$	213		$	107	$	—		$	—		$	604
Sales of rental equipment		—			25			11			6		—			—			42
Sales of new equipment		—			10			6			8		—			—			24
Contractor supplies sales		—			12			6			5		—			—			23
Service and other revenues		—			11			5			4		—			—			20
Total revenues		—			342			241			130		—			—			713
Cost of revenues:
Cost of equipment rentals, excluding depreciation		—			126			97			38		—			—			261
Depreciation of rental equipment		—			57			35			18		—			—			110
Cost of rental equipment sales		—			16			7			4		—			—			27
Cost of new equipment sales		—			8			5			6		—			—			19
Cost of contractor supplies sales		—			7			4			4		—			—			15
Cost of service and other revenues		—			6			1			—		—			—			7
Total cost of revenues		—			220			149			70		—			—			439
Gross profit		—			122			92			60		—			—			274
Selling, general and administrative expenses		7			40			35			17		4			—			103
Restructuring charge		—			1			1			—		—			—			2
Non-rental depreciation and amortization		4			4			2			3		—			—			13
Operating (loss) income		(11	)		77			54			40		(4	)		—			156
Interest expense (income), net		3			51			(7	)		2		1			7			57
Interest expense-subordinated convertible debentures		1			—			—			—		—			—			1
Other (income) expense, net		(19	)		17			12			2		(10	)		—			2
Income before provision (benefit) for income taxes		4			9			49			36		5			(7	)		96
Provision (benefit) for income taxes		2			(20	)		34			9		6			—			31
Income (loss) before equity in net earnings (loss) of subsidiaries		2			29			15			27		(1	)		(7	)		65
Equity in net earnings (loss) of subsidiaries		63			34			20			—		—			(117	)		—
Net income (loss)	$	65		$	63		$	35		$	27	$	(1	)	$	(124	)	$	65

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended September 30, 2010

	Parent			URNA			Guarantor Subsidiaries		Non-Guarantor Subsidiaries						Eliminations			Total
									Foreign			SPV
REVENUES
Revenues:
Equipment rentals	$	—		$	255		$	180	$	72		$	—		$	—		$	507
Sales of rental equipment		—			15			12		5			—			—			32
Sales of new equipment		—			11			4		4			—			—			19
Contractor supplies sales		—			11			8		5			—			—			24
Service and other revenues		—			12			5		6			—			—			23
Total revenues		—			304			209		92			—			—			605
Cost of revenues:
Cost of equipment rentals, excluding depreciation		—			119			87		31			—			—			237
Depreciation of rental equipment		—			54			32		12			—			—			98
Cost of rental equipment sales		—			9			9		4			—			—			22
Cost of new equipment sales		—			9			3		3			—			—			15
Cost of contractor supplies sales		—			7			6		3			—			—			16
Cost of service and other revenues		—			6			1		1			—			—			8
Total cost of revenues		—			204			138		54			—			—			396
Gross profit		—			100			71		38			—			—			209
Selling, general and administrative expenses		12			44			20		14			5			—			95
Restructuring charge		—			2			5		—			—			—			7
Non-rental depreciation and amortization		4			6			3		1			—			—			14
Operating (loss) income		(16	)		48			43		23			(5	)		—			93
Interest expense (income), net		3			49			3		(1	)		1			—			55
Interest expense-subordinated convertible debentures		2			—			—		—			—			—			2
Other (income) expense, net		(17	)		12			7		4			(8	)		—			(2	)
(Loss) income before (benefit) provision for income taxes		(4	)		(13	)		33		20			2			—			38
(Benefit) provision for income taxes		(2	)		(7	)		19		4			1			—			15
(Loss) income before equity in net earnings (loss) of subsidiaries		(2	)		(6	)		14		16			1			—			23
Equity in net earnings (loss) of subsidiaries		25			31			—		—			—			(56	)		—
Net income (loss)	$	23		$	25		$	14	$	16		$	1		$	(56	)	$	23

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Nine Months Ended September 30, 2011

	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
										Foreign		SPV
Revenues:
Equipment rentals	$	—		$	756		$	540		$	266	$	—		$	—		$	1,562
Sales of rental equipment		—			66			32			17		—			—			115
Sales of new equipment		—			27			15			18		—			—			60
Contractor supplies sales		—			30			19			17		—			—			66
Service and other revenues		—			33			16			13		—			—			62
Total revenues		—			912			622			331		—			—			1,865
Cost of revenues:
Cost of equipment rentals, excluding depreciation		—			360			265			115		—			—			740
Depreciation of rental equipment		—			165			101			46		—			—			312
Cost of rental equipment sales		—			42			21			10		—			—			73
Cost of new equipment sales		—			22			12			14		—			—			48
Cost of contractor supplies sales		—			20			13			12		—			—			45
Cost of service and other revenues		—			15			5			4		—			—			24
Total cost of revenues		—			624			417			201		—			—			1,242
Gross profit		—			288			205			130		—			—			623
Selling, general and administrative expenses		20			111			100			52		15			—			298
Restructuring charge		—			3			2			—		—			—			5
Non-rental depreciation and amortization		11			12			11			5		—			—			39
Operating (loss) income		(31	)		162			92			73		(15	)		—			281
Interest expense (income), net		9			155			(4	)		3		3			4			170
Interest expense-subordinated convertible debentures		5			—			—			—		—			—			5
Other (income) expense, net		(51	)		42			27			8		(28	)		—			(2	)
Income (loss) before provision (benefit) for income taxes		6			(35	)		69			62		10			(4	)		108
Provision (benefit) for income taxes		2			(18	)		28			18		5			—			35
Income (loss) from continuing operations		4			(17	)		41			44		5			(4	)		73
Loss from discontinued operation, net of taxes		—			(1	)		—			—		—			—			(1	)
Income (loss) before equity in net earnings (loss) of subsidiaries		4			(18	)		41			44		5			(4	)		72
Equity in net earnings (loss) of subsidiaries		68			86			40			—		—			(194	)		—
Net income (loss)	$	72		$	68		$	81		$	44	$	5		$	(198	)	$	72

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Nine Months Ended September 30, 2010

	Parent			URNA			Guarantor Subsidiaries		Non-Guarantor Subsidiaries						Eliminations			Total
									Foreign			SPV
REVENUES
Revenues:
Equipment rentals	$	—		$	695		$	458	$	184		$	—		$	—		$	1,337
Sales of rental equipment		—			53			34		17			—			—			104
Sales of new equipment		—			33			13		13			—			—			59
Contractor supplies sales		—			32			24		17			—			—			73
Service and other revenues		—			36			17		14			—			—			67
Total revenues		—			849			546		245			—			—			1,640
Cost of revenues:
Cost of equipment rentals, excluding depreciation		—			335			242		91			—			—			668
Depreciation of rental equipment		—			160			96		33			—			—			289
Cost of rental equipment sales		—			37			25		12			—			—			74
Cost of new equipment sales		—			28			10		11			—			—			49
Cost of contractor supplies sales		—			23			17		11			—			—			51
Cost of service and other revenues		—			16			6		4			—			—			26
Total cost of revenues		—			599			396		162			—			—			1,157
Gross profit		—			250			150		83			—			—			483
Selling, general and administrative expenses		21			126			70		40			14			—			271
Restructuring charge		—			11			8		—			—			—			19
Non-rental depreciation and amortization		10			18			12		3			—			—			43
Operating (loss) income		(31	)		95			60		40			(14	)		—			150
Interest expense (income), net		9			156			5		(3	)		3			—			170
Interest expense-subordinated convertible debentures		6			—			—		—			—			—			6
Other (income) expense, net		(46	)		34			24		9			(24	)		—			(3	)
(Loss) income before (benefit) provision for income taxes		—			(95	)		31		34			7			—			(23	)
(Benefit) provision for income taxes		—			(54	)		18		14			4			—			(18	)
(Loss) income before equity in net (loss) earnings of subsidiaries		—			(41	)		13		20			3			—			(5	)
Equity in net (loss) earnings of subsidiaries		(5	)		36			—		—			—			(31	)		—
Net (loss) income	$	(5	)	$	(5	)	$	13	$	20		$	3		$	(31	)	$	(5	)

CONDENSED CONSOLIDATING CASH FLOW INFORMATION

For the Nine Months Ended September 30, 2011

	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations		Total
										Foreign			SPV
Net cash provided by (used in) operating activities	$	3		$	192		$	215		$	83		$	(40	)	$	—	$	453
Net cash used in investing activities		(11	)		(221	)		(219	)		(276	)		—			—		(727	)
Net cash provided by financing activities		8			29			4			11			40			—		92
Effect of foreign exchange rates		—			—			—			5			—			—		5
Net decrease in cash and cash equivalents		—			—			—			(177	)		—			—		(177	)
Cash and cash equivalents at beginning of period		—			4			—			199			—			—		203
Cash and cash equivalents at end of period	$	—		$	4		$	—		$	22		$	—		$	—	$	26

CONDENSED CONSOLIDATING CASH FLOW INFORMATION

For the Nine Months Ended September 30, 2010

	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations		Total
										Foreign			SPV
Net cash provided by (used in) operating activities	$	12		$	271		$	70		$	45		$	(55	)	$	—	$	343
Net cash used in investing activities		(10	)		(69	)		(75	)		(43	)		—			—		(197	)
Net cash (used in) provided by financing activities		(2	)		(200	)		2			(2	)		55			—		(147	)
Effect of foreign exchange rates		—			—			—			2			—			—		2
Net increase (decrease) in cash and cash equivalents		—			2			(3	)		2			—			—		1
Cash and cash equivalents at beginning of period		—			5			3			161			—			—		169
Cash and cash equivalents at end of period	$	—		$	7		$	—		$	163		$	—		$	—	$	170