Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of the components of the provision (benefit) for income taxes

The components of the provision (benefit) for income taxes for each of the three years in the period ended December 31, 2022 are as follows:

	Year ended December 31,
	2022		2021		2020
Current
Federal	$	(34)	$	78	$	290
Foreign	100		26		15
State and local	94		88		65
	160		192		370
Deferred
Federal	525		260		(107)
Foreign	(16)		14		6
State and local	28		(6)		(20)
	537		268		(121)
Total	$	697	$	460	$	249

Schedule of effective income tax rate reconciliation

A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rate of 21 percent to the income before provision (benefit) for income taxes for each of the three years in the period ended December 31, 2022 is as follows:

	Year ended December 31,
	2022		2021		2020
Computed tax at statutory tax rate	$	588	$	388	$	239
State income taxes, net of federal tax benefit	102		64		31
Other permanent items	18		1		(3)
Change in federal valuation allowance	15		—		(22)
Foreign restructuring (1)	(37)		—		—
Foreign tax rate differential	11		7		4
Total	$	697	$	460	$	249

 

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(1)    Reflects the impact of aligning the legal entity structure in Australia and New Zealand with our other foreign operations, which resulted in a tax depreciation benefit.

Schedule of deferred tax assets and liabilities

The components of deferred income tax assets (liabilities) are as follows:

	December 31, 2022		December 31, 2021
Reserves and allowances	$	186	$	165
Debt cancellation and other	18		16
Net operating loss and credit carryforwards	171		175
Interest carryforward (1)	84		—
Operating lease assets	216		210
Total deferred tax assets	675		566
Less: valuation allowance (2)	(19)		(9)
Total net deferred tax assets	656		557
Property and equipment, including rental equipment	(2,986)		(2,349)
Operating lease liabilities	(216)		(210)
Intangibles	(125)		(152)
Total deferred tax liability	(3,327)		(2,711)
Total net deferred tax liability	$	(2,671)	$	(2,154)

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(1)    Relates to the limitation of deductible interest, and is primarily due to tax depreciation benefits associated with the Ahern Rentals acquisition (see note 6 to the consolidated financial statements for further detail).

(2)    Relates to federal foreign tax credits, state net operating loss carryforwards and state tax credits that may not be realized.