Organization, Description Of Business And Basis Of Presentation

9 Months Ended

Sep. 30, 2011

Organization, Description Of Business And Basis Of Presentation

Organization, Description Of Business And Basis Of Presentation

1. Organization, Description of Business and Basis of Presentation

United Rentals, Inc. ("Holdings," "United Rentals" or the "Company") is principally a holding company and conducts its operations primarily through its wholly owned subsidiary, United Rentals (North America), Inc. ("URNA"), and subsidiaries of URNA. Holdings' primary asset is its sole ownership of all issued and outstanding shares of common stock of URNA. URNA's various credit agreements and debt instruments place restrictions on its ability to transfer funds to its shareholder.

We rent equipment to a diverse customer base that includes construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities in the United States and Canada. In addition to renting equipment, we sell new and used rental equipment, as well as related contractor supplies, parts and service.

During the nine months ended September 30, 2011, we completed the acquisitions of Venetor Group ("Venetor"), a seven location equipment rental company in Canada located in the province of Ontario, GulfStar Rental Solutions, LP ("GulfStar"), a three location power and HVAC ("heating, ventilating and air conditioning") equipment rental company located in Texas and Louisiana, and Ontario Laser Rentals Ltd. ("Ontario Laser"), a two location trench safety equipment rental company in Canada located in the province of Ontario. Venetor, GulfStar and Ontario Laser had annual revenues of approximately $50, $15 and $20, respectively. Our cash flows for the nine months ended September 30, 2011 reflect an aggregate of $198 paid to purchase these companies. The purchase price allocations for these acquisitions are based on preliminary valuations and are subject to change as we obtain additional information during each acquisition's measurement period.

We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with the accounting policies described in our annual report on Form 10-K for the year ended December 31, 2010 (the "2010 Form 10-K") and the interim reporting requirements of Form 10-Q. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the 2010 Form 10-K.

In our opinion, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of financial condition, operating results and cash flows for the interim periods presented have been made. Interim results of operations are not necessarily indicative of the results of the full year.

New Accounting Pronouncements

Comprehensive Income. In June 2011, the Financial Accounting Standards Board ("FASB") issued guidance on the presentation of comprehensive income. This guidance eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity, which is our current presentation, and also requires presentation of reclassification adjustments from other comprehensive income to net income on the face of the financial statements. This guidance is effective for fiscal years and interim periods beginning after December 15, 2011, and is not expected to have a material effect on our financial condition or results of operations, though it will change our financial statement presentation.

Goodwill Impairment Testing. In September 2011, the FASB issued guidance that simplified how entities test for goodwill impairment. This guidance permits entities to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a two-step goodwill impairment test. This guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, and early adoption is permitted. We plan to early adopt this guidance for our annual goodwill impairment test that will be conducted as of October 1, 2011. This guidance is not expected to have a material effect on our financial condition or results of operations.