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Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Revenues by Type and by Applicable Accounting Standard

The tables below summarize our revenues as presented in our consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019 by revenue type and by the applicable accounting standard (amounts in thousands).

 

 

 

Year Ended December 31, 2021

 

 

 

Topic 842

 

 

Topic 606

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

Rental Revenues:

 

 

 

 

 

 

 

 

 

Owned equipment rentals

 

$

617,831

 

 

$

354

 

 

$

618,185

 

Re-rent revenue

 

 

34,819

 

 

 

 

 

 

34,819

 

Ancillary and other rental revenues:

 

 

 

 

 

 

 

 

 

Delivery and pick-up

 

 

 

 

 

40,523

 

 

 

40,523

 

Other

 

 

36,173

 

 

 

 

 

 

36,173

 

Total ancillary rental revenues

 

 

36,173

 

 

 

40,523

 

 

 

76,696

 

Total equipment rental revenues

 

 

688,823

 

 

 

40,877

 

 

 

729,700

 

Used equipment sales

 

 

 

 

 

135,245

 

 

 

135,245

 

New equipment sales

 

 

 

 

 

92,677

 

 

 

92,677

 

Parts sales

 

 

 

 

 

65,623

 

 

 

65,623

 

Services revenues

 

 

 

 

 

33,034

 

 

 

33,034

 

Other

 

 

 

 

 

6,518

 

 

 

6,518

 

Total revenues

 

$

688,823

 

 

$

373,974

 

 

$

1,062,797

 

 

 

 

Year Ended December 31, 2020

 

 

 

Topic 842

 

 

Topic 606

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

Rental Revenues:

 

 

 

 

 

 

 

 

 

Owned equipment rentals

 

$

557,166

 

 

$

471

 

 

$

557,637

 

Re-rent revenue

 

 

23,507

 

 

 

 

 

 

23,507

 

Ancillary and other rental revenues:

 

 

 

 

 

 

 

 

 

Delivery and pick-up

 

 

 

 

 

35,793

 

 

 

35,793

 

Other

 

 

27,508

 

 

 

 

 

 

27,508

 

Total ancillary rental revenues

 

 

27,508

 

 

 

35,793

 

 

 

63,301

 

Total equipment rental revenues

 

 

608,181

 

 

 

36,264

 

 

 

644,445

 

Used equipment sales

 

 

 

 

 

139,769

 

 

 

139,769

 

New equipment sales

 

 

 

 

 

113,708

 

 

 

113,708

 

Parts sales

 

 

 

 

 

65,881

 

 

 

65,881

 

Services revenues

 

 

 

 

 

35,989

 

 

 

35,989

 

Other

 

 

 

 

 

7,183

 

 

 

7,183

 

Total revenues

 

$

608,181

 

 

$

398,794

 

 

$

1,006,975

 

 

 

 

Year Ended December 31, 2019

 

 

 

Topic 842

 

 

Topic 606

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

Rental Revenues:

 

 

 

 

 

 

 

 

 

Owned equipment rentals

 

$

647,123

 

 

$

621

 

 

$

647,744

 

Re-rent revenue

 

 

24,007

 

 

 

 

 

 

24,007

 

Ancillary and other rental revenues:

 

 

 

 

 

 

 

 

 

Delivery and pick-up

 

 

 

 

 

40,049

 

 

 

40,049

 

Other

 

 

30,155

 

 

 

 

 

 

30,155

 

Total ancillary rental revenues

 

 

30,155

 

 

 

40,049

 

 

 

70,204

 

Total equipment rental revenues

 

 

701,285

 

 

 

40,670

 

 

 

741,955

 

Used equipment sales

 

 

 

 

 

122,591

 

 

 

122,591

 

New equipment sales

 

 

 

 

 

131,798

 

 

 

131,798

 

Parts sales

 

 

 

 

 

77,569

 

 

 

77,569

 

Services revenues

 

 

 

 

 

41,521

 

 

 

41,521

 

Other

 

 

 

 

 

8,327

 

 

 

8,327

 

Total revenues

 

$

701,285

 

 

$

422,476

 

 

$

1,123,761

 

Estimated Useful Lives of Property Plant and Equipment Generally, we assign the following estimated useful lives to these categories:

 

Category

 

Estimated
Useful Life

Transportation equipment

 

5 years

Buildings

 

39 years

Office equipment

 

5 years

Computer equipment

 

3 years

Machinery and equipment

 

7 years

Schedule of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for our reporting units for the year ended December 31, 2020 is as follows (amounts in thousands). There were no changes to the carrying amount of goodwill for the year ended December 31, 2021.

 

 

Eq. Rental
Comp. 1

 

 

Eq. Rental
Comp. 2 (1)

 

 

Used Eq.
Sales

 

 

New Eq.
Sales

 

 

Parts
Sales

 

 

Service
Revenues

 

 

Total

 

Balance at December 31, 2019

 

$

49,215

 

 

$

55,981

 

 

$

8,455

 

 

$

 

 

$

5,747

 

 

$

 

 

$

119,398

 

Decreases (2)

 

 

(239

)

 

 

(317

)

 

 

(8

)

 

 

 

 

 

(33

)

 

 

 

 

 

(597

)

Decreases (3)

 

 

 

 

 

(55,664

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(55,664

)

Balance at December 31, 2020

 

$

48,976

 

 

$

 

 

$

8,447

 

 

$

 

 

$

5,714

 

 

$

 

 

$

63,137

 

 

(1)
As of October 1, 2021, Equipment Rental Component 2 is no longer a reporting unit, as described above.
(2)
Decreases are related to an adjustment during the first quarter of 2020 from the final closing settlement of the Cobra Equipment Rentals, LLC 2019 acquisition. See Note 3 for further information.
(3)
Decrease is related to the goodwill impairment calculated as of March 31, 2020, as described above. 
Schedule of Gross Carrying Values, Accumulated Amortization and Net Carrying Amounts of Major Classes of Intangible Assets

The gross carrying values, accumulated amortization and net carrying amounts of our major classes of intangible assets as of December 31, 2021 and 2020 are as follows (dollar amounts in thousands):

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Gross

 

 

Accumulated Amortization

 

 

Net

 

 

Gross

 

 

Accumulated Amortization

 

 

Net

 

Customer relationships

 

$

39,500

 

 

$

14,629

 

 

$

24,871

 

 

$

39,500

 

 

$

10,679

 

 

$

28,821

 

Tradenames

 

 

 

 

 

 

 

 

 

 

 

200

 

 

 

200

 

 

 

 

Leasehold interests

 

 

200

 

 

 

80

 

 

 

120

 

 

 

200

 

 

 

60

 

 

 

140

 

    Total

 

$

39,700

 

 

$

14,709

 

 

$

24,991

 

 

$

39,900

 

 

$

10,939

 

 

$

28,961

 

Schedule of Expected Amortization Expense of Intangible Assets with Remaining Carrying Value The following table

presents the expected amortization expense for each of the next five years ending December 31 and thereafter for those intangible assets with remaining carrying value as of December 31, 2021 (dollar amounts in thousands):

 

 

Amortization Expense

 

2022

 

$

3,970

 

2023

 

 

3,970

 

2024

 

 

3,970

 

2025

 

 

3,970

 

2026

 

 

3,970

 

Thereafter

 

 

5,141

 

 

 

$

24,991

 

Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements The carrying amounts and fair values of our other financial instruments subject to fair value disclosures as of December 31, 2021 and 2020 are presented in the table below (amounts in thousands).

 

 

 

December 31, 2021

 

 

 

Carrying
Amount

 

 

Fair
Value

 

Manufacturer flooring plans payable with interest computed at 3.5% (Level 3)

 

$

20,924

 

 

$

19,533

 

Senior unsecured notes due 2028 with interest computed at 3.875% (Level 2)

 

 

1,239,967

 

 

 

1,242,850

 

 

 

 

December 31, 2020

 

 

 

Carrying
Amount

 

 

Fair
Value

 

Manufacturer flooring plans payable with interest computed at 3.5% (Level 3)

 

$

9,615

 

 

$

8,976

 

Senior unsecured notes due 2028 with interest computed at 3.875% (Level 2)

 

 

1,238,660

 

 

 

1,259,413

 

Summary of Computation of Basic and Diluted Net Income Per Common Share

The following table sets forth the computation of basic and diluted net income (loss) per common share for the years ended December 31, (amounts in thousands, except per share amounts):

 

 

 

2021

 

 

2020

 

 

2019

 

Net income (loss) from continuing operations

 

$

60,564

 

 

$

(46,396

)

 

$

69,190

 

Net income from discontinued operations

 

$

41,976

 

 

$

13,729

 

 

$

18,021

 

Net income (loss)

 

$

102,540

 

 

$

(32,667

)

 

$

87,211

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

36,261

 

 

 

36,067

 

 

 

35,859

 

Effect of dilutive non-vested restricted stock

 

 

190

 

 

 

 

 

 

174

 

Diluted

 

 

36,451

 

 

 

36,067

 

 

 

36,033

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share:

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.67

 

 

$

(1.29

)

 

$

1.93

 

Discontinued operations

 

 

1.16

 

 

 

0.38

 

 

 

0.50

 

Net income (loss) per share

 

$

2.83

 

 

$

(0.91

)

 

$

2.43

 

Diluted:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.66

 

 

$

(1.29

)

 

$

1.92

 

Discontinued operations

 

 

1.15

 

 

 

0.38

 

 

 

0.50

 

Net income (loss) per share

 

$

2.81

 

 

$

(0.91

)

 

$

2.42

 

 

 

 

 

 

 

 

 

 

 

Common shares excluded from the denominator as anti-dilutive:

 

 

 

 

 

 

 

 

 

Non-vested restricted stock

 

 

23

 

 

 

147

 

 

 

32

 

 

Schedule of Non-Vested Stock Activity The following table summarizes our non-vested stock activity for the years ended December 31, 2021 and 2020:

 

 

 

Number of
Shares

 

 

Weighted
Average Grant
Date Fair Value

 

Non-vested stock at January 1, 2020

 

 

377,740

 

 

$

29.26

 

Granted

 

 

364,981

 

 

$

18.21

 

Vested

 

 

(203,638

)

 

$

25.65

 

Forfeited

 

 

(14,207

)

 

$

28.11

 

Non-vested stock at December 31, 2020

 

 

524,876

 

 

$

23.00

 

Granted

 

 

202,687

 

 

$

33.28

 

Vested

 

 

(186,042

)

 

$

26.83

 

Forfeited

 

 

(61,374

)

 

$

25.31

 

Non-vested stock at December 31, 2021

 

 

480,147

 

 

$

25.56