Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

Our two reportable segments are i) general rentals and ii) trench safety, power and HVAC, and pump solutions. The general rentals segment includes the rental of the following equipment:

• General construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment. In 2014, 2013 and 2012, respectively, general construction and industrial equipment accounted for approximately 43 percent, 44 percent and 45 percent of our equipment rental revenue;

• Aerial work platforms,such as boom lifts and scissor lifts. In 2014, 2013 and 2012, respectively, aerial work platforms accounted for approximately 33 percent, 36 percent and 36 percent of our equipment rental revenue; and

• General tools and light equipment, such as pressure washers, water pumps and power tools. In 2014, 2013 and 2012, respectively, general tools and light equipment accounted for approximately 10 percent, 9 percent and 9 percent of our equipment rental revenue.

The general rentals segment reflects the aggregation of 12 geographic regions—Eastern Canada, Gulf South, Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Mid-Central, Midwest, Mountain West, Northeast, Pacific West, South, Southeast and Western Canada—and operates throughout the United States and Canada.

The trench safety, power and HVAC, and pump solutions segment includes the rental of specialty construction products such as the following:

• Power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment. In 2014, 2013 and 2012, power and HVAC equipment accounted for approximately 6 percent of our equipment rental revenue;

• Trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work. In 2014, 2013 and 2012, respectively, trench safety equipment accounted for approximately 5 percent, 5 percent and 4 percent of our equipment rental revenue; and

• Pumps primarily used by energy and petrochemical customers. In 2014, pumps accounted for approximately 3 percent of our equipment rental revenue. There was no material equipment rental revenue associated with pumps prior to the April 2014 acquisition of National Pump discussed in note 3 to our consolidated financial statements.

The trench safety, power and HVAC, and pump solutions segment is comprised of: (i) the Trench Safety region, which rents the trench safety equipment above, (ii) the Power and HVAC region, which rents the power and HVAC equipment above, and (iii) the Pump Solutions region, which rents the pumps above. The trench safety, power and HVAC, and pump solutions segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment operates throughout the United States and in Canada.

These segments align our external segment reporting with how management evaluates business performance and allocates resources. We evaluate segment performance based on segment equipment rentals gross profit.

The accounting policies for our segments are the same as those described in the summary of significant accounting policies in note 2. Certain corporate costs, including those related to selling, finance, legal, risk management, human resources, corporate management and information technology systems, are deemed to be of an operating nature and are allocated to our segments based primarily on rental fleet size.

The following table sets forth financial information by segment for the years ended December 31, 2014, 2013 and 2012, except for balance sheet information, which is presented as of December 31, 2014 and 2013.

	General rentals		Trench safety, power and HVAC, and pump solutions		Total
2014
Equipment rentals	$	4,222	$	597	$	4,819
Sales of rental equipment	519		25		544
Sales of new equipment	113		36		149
Contractor supplies sales	73		12		85
Service and other revenues	75		13		88
Total revenue	5,002		683		5,685
Depreciation and amortization expense	1,060		134		1,194
Equipment rentals gross profit	1,790		302		2,092
Capital expenditures	1,594		227		1,821
Total assets (1)	$	10,935	$	1,532	$	12,467
2013
Equipment rentals	$	3,869	$	327	$	4,196
Sales of rental equipment	474		16		490
Sales of new equipment	97		7		104
Contractor supplies sales	79		8		87
Service and other revenues	72		6		78
Total revenue	4,591		364		4,955
Depreciation and amortization expense	1,038		60		1,098
Equipment rentals gross profit	1,557		153		1,710
Capital expenditures	1,556		128		1,684
Total assets (1)	$	10,677	$	554	$	11,231
2012
Equipment rentals	$	3,188	$	267	$	3,455
Sales of rental equipment	387		12		399
Sales of new equipment	86		7		93
Contractor supplies sales	80		7		87
Service and other revenues	79		4		83
Total revenue	3,820		297		4,117
Depreciation and amortization expense	850		47		897
Equipment rentals gross profit	1,239		125		1,364
Capital expenditures	$	1,285	$	84	$	1,369

(1) The increase in the trench safety, power and HVAC, and pump solutions assets in 2014 primarily reflects the impact of the National Pump acquisition discussed in note 3 to the 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:

	Year Ended December 31,
	2014			2013			2012
Total equipment rentals gross profit	$	2,092		$	1,710		$	1,364
Gross profit from other lines of business	340			277			223
Selling, general and administrative expenses	(758		)	(642		)	(588		)
Merger related costs	(11		)	(9		)	(111		)
Restructuring charge	1			(12		)	(99		)
Non-rental depreciation and amortization	(273		)	(246		)	(198		)
Interest expense, net	(555		)	(475		)	(512		)
Interest expense- subordinated convertible debentures	—			(3		)	(4		)
Other income, net	14			5			13
Income before provision for income taxes	$	850		$	605		$	88

We operate in the United States and Canada. The following table presents geographic area information for the years ended December 31, 2014, 2013 and 2012, except for balance sheet information, which is presented as of December 31, 2014 and 2013. All the foreign assets as of December 31, 2014 and 2013 are Canadian, and the foreign information in the following table primarily relates to Canada.

	Domestic		Foreign		Total
2014
Equipment rentals	$	4,217	$	602	$	4,819
Sales of rental equipment	478		66		544
Sales of new equipment	124		25		149
Contractor supplies sales	70		15		85
Service and other revenues	73		15		88
Total revenue	4,962		723		5,685
Rental equipment, net	5,399		609		6,008
Property and equipment, net	395		43		438
Goodwill and other intangibles, net	$	4,014	$	364	$	4,378
2013
Equipment rentals	$	3,612	$	584	$	4,196
Sales of rental equipment	438		52		490
Sales of new equipment	82		22		104
Contractor supplies sales	70		17		87
Service and other revenues	62		16		78
Total revenue	4,264		691		4,955
Rental equipment, net	4,768		606		5,374
Property and equipment, net	381		40		421
Goodwill and other intangibles, net	$	3,639	$	332	$	3,971
2012
Equipment rentals	$	2,948	$	507	$	3,455
Sales of rental equipment	350		49		399
Sales of new equipment	67		26		93
Contractor supplies sales	67		20		87
Service and other revenues	66		17		83
Total revenue	$	3,498	$	619	$	4,117