Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

Our reportable segments are i) general rentals and ii) specialty. For general rentals, the divisions discussed below, which are our operating segments, are aggregated into the reportable segment. The specialty segment is a single division that is both an operating segment and a reportable segment. We believe that the divisions that are aggregated into our reportable segments have similar economic characteristics, as each division is capital intensive, offers similar products to similar customers, uses similar methods to distribute its products, and is subject to similar competitive risks. The aggregation of our divisions also reflects the management structure that we use for making operating decisions and assessing performance. We evaluate segment performance primarily based on segment equipment rentals gross profit.

The general rentals segment includes the rental of i) general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, ii) aerial work platforms, such as boom lifts and scissor lifts and iii) general tools and light equipment, such as pressure washers, water pumps and power tools. The general rentals segment reflects the aggregation of four geographic divisions—Central, Northeast, Southeast and West—and operates throughout the United States and Canada.

The specialty segment, which, as noted above, is a single division that is both an operating segment and a reportable segment, includes the rental of specialty construction products such as i) trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, ii) power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment, iii) fluid solutions equipment primarily used for fluid containment, transfer and treatment, and iv) mobile storage equipment and modular office space. The specialty segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment primarily operates in the United States and Canada, and has a limited presence in Europe, Australia and New Zealand.

The following tables set forth financial information by segment.

	General rentals		Specialty		Total
Three Months Ended March 31, 2022
Equipment rentals	$	1,593	$	582	$	2,175
Sales of rental equipment	184		27		211
Sales of new equipment	29		16		45
Contractor supplies sales	18		11		29
Service and other revenues	58		6		64
Total revenue	1,882		642		2,524
Depreciation and amortization expense	422		110		532
Equipment rentals gross profit	575		259		834
Capital expenditures	394		143		537
Three Months Ended March 31, 2021
Equipment rentals	$	1,273	$	394	$	1,667
Sales of rental equipment	247		20		267
Sales of new equipment	42		7		49
Contractor supplies sales	16		8		24
Service and other revenues	44		6		50
Total revenue	1,622		435		2,057
Depreciation and amortization expense	380		86		466
Equipment rentals gross profit	411		166		577
Capital expenditures	284		30		314

	March 31, 2022		December 31, 2021
Total reportable segment assets
General rentals	$	15,947	$	16,087
Specialty	4,222		4,205
Total assets	$	20,169	$	20,292

 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:

	Three Months Ended
	March 31,
	2022		2021
Total equipment rentals gross profit	$	834	$	577
Gross profit from other lines of business	158		137
Selling, general and administrative expenses	(323)		(250)
Restructuring charge (1)	—		(1)
Non-rental depreciation and amortization	(97)		(91)
Interest expense, net	(94)		(99)
Other income, net	5		2
Income before provision for income taxes	$	483	$	275

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(1)Primarily reflects severance and branch closure charges associated with our restructuring programs. For additional information, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations-Results of Operations-Other costs/(income)-restructuring charges" below.