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REVENUE EARNING EQUIPMENT, NET
 9 Months Ended
Sep. 30, 2022
Revenue Earning Equipment [Abstract]  
REVENUE EARNING EQUIPMENT, NET REVENUE EARNING EQUIPMENT, NET
 
Estimated Useful Lives (In Years)
September 30, 2022December 31, 2021
(Dollars in thousands)CostAccumulated
Depreciation
Net
CostAccumulated
Depreciation
Net
Held for use:
Trucks
3 — 7
$5,320,696 $(2,095,515)$3,225,181 $5,223,127 $(2,055,135)$3,167,992 
Tractors
   4 — 7.5
7,213,401 (3,171,471)4,041,930 7,256,002 (3,059,206)4,196,796 
Trailers and other
9.5 — 12
1,566,071 (670,291)895,780 1,780,487 (868,820)911,667 
Held for sale357,838 (247,121)110,717 209,506 (162,922)46,584 
Total$14,458,006 $(6,184,398)$8,273,608 $14,469,122 $(6,146,083)$8,323,039 
Residual Value Estimate Changes

We periodically review and adjust, as appropriate, the estimated residual values and useful lives of existing revenue earning equipment for the purposes of recording depreciation expense. Reductions in estimated residual values or useful lives will increase depreciation expense over the remaining useful life of the vehicle. Conversely, an increase in estimated residual values or useful lives will decrease depreciation expense over the remaining useful life of the vehicle. Our review of the estimated residual values and useful lives of revenue earning equipment is based on vehicle class (i.e., generally subcategories of trucks, tractors and trailers by weight and usage), historical and current market prices, third-party expected future market prices, expected lives of vehicles, and expected sales in the wholesale or retail markets, among other factors. A variety of factors, many of which are outside of our control, could cause residual value estimates to differ from actual used vehicle sales pricing, such as changes in supply and demand of used vehicles; volatility in market conditions; changes in vehicle technology; competitor pricing; regulatory requirements; driver shortages; customer requirements and preferences; and changes in underlying assumption factors. We have disciplines related to the management and maintenance of our vehicles designed to manage the risk associated with the residual values of our revenue earning equipment.
The following table provides a summary of incremental depreciation expense that has been recorded related to our previous residual value estimate changes as well as used vehicle sales results (rounded to the closest million):

Three months ended September 30,Nine months ended September 30,
2022202120222021
Depreciation expense related to estimate changes$50 $76 $147 $239 
Used vehicle sales, net (1)
(113)(69)(356)(150)
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(1)Used vehicle sales, net for the third quarter and nine months ended September 30, 2022, included $15 million and $43 million, respectively, of gains on sales of vehicles in the U.K. Refer to Note 15, "Other Items Impacting Comparability"
Used Vehicle Sales and Valuation Adjustments
Revenue earning equipment held for sale is stated at the lower of carrying amount or fair value less costs to sell. Losses on vehicles held for sale for which carrying values exceeded fair value, which we refer to as "valuation adjustments," are recognized at the time they are deemed to meet the held for sale criteria and are presented within "Used vehicle sales, net" in the Condensed Consolidated Statements of Earnings. For revenue earning equipment held for sale, we stratify our fleet by vehicle type (trucks, tractors and trailers), weight class, age and other relevant characteristics and create classes of similar assets for analysis purposes. For revenue earning equipment held for sale, fair value was determined based upon recent market prices obtained from our own sales experience for each class of similar assets and vehicle condition, if available, or third-party market pricing. In addition, we also consider expected declines in market prices when valuing the vehicles held for sale, as well as forecasted sales channel mix (retail/wholesale).

The following table presents revenue earning equipment held for sale that are measured at fair value on a nonrecurring basis and considered a Level 3 fair value measurement:
Losses from Valuation Adjustments
 Three months ended September 30,Nine months ended September 30,
(In thousands)September 30, 2022December 31, 20212022202120222021
Revenue earning equipment held for sale (1):
Trucks$838 $931 $925 $1,224 $1,911 $2,798 
Tractors1,671 1,485 972 2,177 3,424 2,836 
Trailers and other594 1,309 396 1,161 882 5,036 
Total assets at fair value$3,103 $3,725 $2,293 $4,562 $6,217 $10,670 
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(1)Reflects only the portion where net book values exceeded fair values and valuation adjustments were recorded. The net book value of assets held for sale that were less than fair value was $108 million and $43 million as of September 30, 2022 and December 31, 2021, respectively.

The components of Used vehicle sales, net were as follows:
 Three months ended September 30,Nine months ended September 30,
(In thousands)2022202120222021
Gains on vehicle sales, net$(115,778)$(73,865)$(362,262)$(160,458)
Losses from valuation adjustments2,293 4,562 6,217 10,670 
Used vehicle sales, net$(113,485)$(69,303)$(356,045)$(149,788)