Condensed Consolidating Financial Information of Guarantor Subsidiaries

9 Months Ended

Sep. 30, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Information of Guarantor Subsidiaries

Condensed Consolidating Financial Information of Guarantor Subsidiaries

URNA is 100 percent owned by Holdings (“Parent”) and has outstanding (i) certain indebtedness that is guaranteed by Parent, (ii) certain indebtedness that is guaranteed by both Parent and, with the exception of its U.S. special purpose vehicle which holds receivable assets relating to the Company’s accounts receivable securitization (the “SPV”), all of URNA’s U.S. subsidiaries (the “guarantor subsidiaries”) and (iii) certain indebtedness that is guaranteed by the guarantor subsidiaries. However, this indebtedness is not guaranteed by URNA’s foreign subsidiaries and the SPV (together, the “non-guarantor subsidiaries”). The guarantor subsidiaries are all 100 percent-owned and the guarantees are made on a joint and several basis. The guarantees are not full and unconditional because a guarantor subsidiary can be automatically released and relieved of its obligations under certain circumstances, including sale of the subsidiary guarantor, the sale of all or substantially all of the subsidiary guarantor's assets, the requirements for legal defeasance or covenant defeasance under the applicable indenture being met or designating the subsidiary guarantor as an unrestricted subsidiary for purposes of the applicable covenants. The guarantees are also subject to subordination provisions (to the same extent that the obligations of the issuer under the relevant notes are subordinated to other debt of the issuer) and to a standard limitation which provides that the maximum amount guaranteed by each guarantor will not exceed the maximum amount that can be guaranteed without making the guarantee void under fraudulent conveyance laws. Based on our understanding of Rule 3-10 of Regulation S-X ("Rule 3-10"), we believe that the guarantees of the guarantor subsidiaries comply with the conditions set forth in Rule 3-10 and therefore continue to utilize Rule 3-10 to present condensed consolidating financial information for Holdings, URNA, the guarantor subsidiaries and the non-guarantor subsidiaries. Separate consolidated financial statements of the guarantor subsidiaries have not been presented because management believes that such information would not be material to investors. However, condensed consolidating financial information is presented. The condensed consolidating financial information of Parent and its subsidiaries is as follows:

CONDENSED CONSOLIDATING BALANCE SHEET

September 30, 2013

	Parent		URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
									Foreign			SPV
ASSETS
Cash and cash equivalents	$	—	$	16		$	—		$	109		$	—	$	—		$	125
Accounts receivable, net	—		27			—			136			644		—			807
Intercompany receivable (payable)	215		(164		)	(42		)	(159		)	—		150			—
Inventory	—		81			—			10			—		—			91
Prepaid expenses and other assets	—		110			2			17			—		—			129
Deferred taxes	—		260			—			2			—		—			262
Total current assets	215		330			(40		)	115			644		150			1,414
Rental equipment, net	—		4,956			—			643			—		—			5,599
Property and equipment, net	47		320			14			39			—		—			420
Investments in subsidiaries	1,622		1,107			975			—			—		(3,704		)	—
Goodwill, net	—		2,707			—			254			—		—			2,961
Other intangible assets, net	—		971			—			93			—		—			1,064
Other long-term assets	3		102			—			—			—		—			105
Total assets	$	1,887	$	10,493		$	949		$	1,144		$	644	$	(3,554	)	$	11,563
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Short-term debt and current maturities of long-term debt	$	134	$	34		$	—		$	—		$	462	$	—		$	630
Accounts payable	—		319			—			47			—		—			366
Accrued expenses and other liabilities	2		361			29			30			—		—			422
Total current liabilities	136		714			29			77			462		—			1,418
Long-term debt	—		6,799			145			8			—		—			6,952
Deferred taxes	22		1,293			—			80			—		—			1,395
Other long-term liabilities	—		65			—			4			—		—			69
Total liabilities	158		8,871			174			169			462		—			9,834
Temporary equity (note 6)	22		—			—			—			—		—			22
Total stockholders’ equity (deficit)	1,707		1,622			775			975			182		(3,554		)	1,707
Total liabilities and stockholders’ equity (deficit)	$	1,887	$	10,493		$	949		$	1,144		$	644	$	(3,554	)	$	11,563

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2012

	Parent		URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
									Foreign			SPV
ASSETS
Cash and cash equivalents	$	—	$	20		$	—		$	86		$	—	$	—		$	106
Accounts receivable, net	—		43			—			146			604		—			793
Intercompany receivable (payable)	168		(108		)	(49		)	(163		)	—		152			—
Inventory	—		60			—			8			—		—			68
Prepaid expenses and other assets	—		87			10			14			—		—			111
Deferred taxes	—		263			—			2			—		—			265
Total current assets	168		365			(39		)	93			604		152			1,343
Rental equipment, net	—		4,357			—			609			—		—			4,966
Property and equipment, net	41		333			16			38			—		—			428
Investments in subsidiaries	1,575		1,029			932			—			—		(3,536		)	—
Goodwill, net	—		2,710			—			260			—		—			2,970
Other intangible assets, net	—		1,094			—			106			—		—			1,200
Other long-term assets	4		115			—			—			—		—			119
Total assets	$	1,788	$	10,003		$	909		$	1,106		$	604	$	(3,384	)	$	11,026
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Short-term debt and current maturities of long-term debt	$	137	$	40		$	—		$	—		$	453	$	—		$	630
Accounts payable	—		243			—			43			—		—			286
Accrued expenses and other liabilities	1		361			33			40			—		—			435
Total current liabilities	138		644			33			83			453		—			1,351
Long-term debt	—		6,522			150			7			—		—			6,679
Subordinated convertible debentures	55		—			—			—			—		—			55
Deferred taxes	21		1,199			—			82			—		—			1,302
Other long-term liabilities	—		63			—			2			—		—			65
Total liabilities	214		8,428			183			174			453		—			9,452
Temporary equity (note 6)	31		—			—			—			—		—			31
Total stockholders’ equity (deficit)	1,543		1,575			726			932			151		(3,384		)	1,543
Total liabilities and stockholders’ equity (deficit)	$	1,788	$	10,003		$	909		$	1,106		$	604	$	(3,384	)	$	11,026

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

For the Three Months Ended September 30, 2013

	Parent			URNA		Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations			Total
									Foreign		SPV
Revenues:
Equipment rentals	$	—		$	990	$	—		$	148	$	—			$	—		$	1,138
Sales of rental equipment	—			91		—			11		—				—			102
Sales of new equipment	—			24		—			5		—				—			29
Contractor supplies sales	—			19		—			4		—				—			23
Service and other revenues	—			15		—			4		—				—			19
Total revenues	—			1,139		—			172		—				—			1,311
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			366		—			56		—				—			422
Depreciation of rental equipment	—			193		—			26		—				—			219
Cost of rental equipment sales	—			56		—			6		—				—			62
Cost of new equipment sales	—			20		—			3		—				—			23
Cost of contractor supplies sales	—			12		—			3		—				—			15
Cost of service and other revenues	—			4		—			2		—				—			6
Total cost of revenues	—			651		—			96		—				—			747
Gross profit	—			488		—			76		—				—			564
Selling, general and administrative expenses	7			114		—			23		23			(1)	—			167
Restructuring charge	—			1		—			—		—				—			1
Non-rental depreciation and amortization	5			49		—			5		—				—			59
Operating (loss) income	(12		)	324		—			48		(23		)		—			337
Interest expense (income), net	3			115		1			1		2				(1		)	121
Other (income) expense, net	(35		)	50		—			5		(22		)		—			(2		)
Income (loss) before provision (benefit) for income taxes	20			159		(1		)	42		(3		)		1			218
Provision (benefit) for income taxes	12			53		(1		)	11		—				—			75
Income before equity in net earnings (loss) of subsidiaries	8			106		—			31		(3		)		1			143
Equity in net earnings (loss) of subsidiaries	135			29		31			—		—				(195		)	—
Net income (loss)	143			135		31			31		(3		)		(194		)	143
Other comprehensive income (loss)	21			21		22			16		—				(59		)	21
Comprehensive income (loss)	$	164		$	156	$	53		$	47	$	(3	)		$	(253	)	$	164

(1) Includes $23 of bad debt expense which was previously reflected within URNA, $17 of which relates to prior periods.

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

For the Three Months Ended September 30, 2012

	Parent			URNA		Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
									Foreign		SPV
Revenues:
Equipment rentals	$	—		$	906	$	—		$	145	$	—		$	—		$	1,051
Sales of rental equipment	—			89		—			12		—			—			101
Sales of new equipment	—			18		—			6		—			—			24
Contractor supplies sales	—			19		—			4		—			—			23
Service and other revenues	—			16		—			4		—			—			20
Total revenues	—			1,048		—			171		—			—			1,219
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			343		—			52		—			—			395
Depreciation of rental equipment	—			180		—			24		—			—			204
Cost of rental equipment sales	—			65		—			7		—			—			72
Cost of new equipment sales	—			14		—			5		—			—			19
Cost of contractor supplies sales	—			15		—			2		—			—			17
Cost of service and other revenues	—			6		(1		)	2		—			—			7
Total cost of revenues	—			623		(1		)	92		—			—			714
Gross profit	—			425		1			79		—			—			505
Selling, general and administrative expenses	7			133		—			23		1			—			164
RSC merger related costs	—			8		—			—		—			—			8
Restructuring charge	—			38		—			2		—			—			40
Non-rental depreciation and amortization	5			60		—			6		—			—			71
Operating (loss) income	(12		)	186		1			48		(1		)	—			222
Interest expense (income), net	3			122		1			1		1			(1		)	127
Interest expense-subordinated convertible debentures	1			—		—			—		—			—			1
Other (income) expense, net	(23		)	49		1			2		(29		)	—			—
Income (loss) before provision for income taxes	7			15		(1		)	45		27			1			94
Provision for income taxes	—			2		—			8		11			—			21
Income (loss) before equity in net earnings (loss) of subsidiaries	7			13		(1		)	37		16			1			73
Equity in net earnings (loss) of subsidiaries	66			53		37			—		—			(156		)	—
Net income (loss)	73			66		36			37		16			(155		)	73
Other comprehensive income (loss)	21			21		20			12		—			(53		)	21
Comprehensive income (loss)	$	94		$	87	$	56		$	49	$	16		$	(208	)	$	94

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

For the Nine Months Ended September 30, 2013

	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries							Eliminations			Total
										Foreign			SPV
Revenues:
Equipment rentals	$	—		$	2,641		$	—		$	422		$	—			$	—		$	3,063
Sales of rental equipment	—			319			—			37			—				—			356
Sales of new equipment	—			58			—			16			—				—			74
Contractor supplies sales	—			53			—			13			—				—			66
Service and other revenues	—			46			—			12			—				—			58
Total revenues	—			3,117			—			500			—				—			3,617
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			1,035			—			179			—				—			1,214
Depreciation of rental equipment	—			555			—			74			—				—			629
Cost of rental equipment sales	—			210			—			22			—				—			232
Cost of new equipment sales	—			47			—			12			—				—			59
Cost of contractor supplies sales	—			35			—			9			—				—			44
Cost of service and other revenues	—			14			—			5			—				—			19
Total cost of revenues	—			1,896			—			301			—				—			2,197
Gross profit	—			1,221			—			199			—				—			1,420
Selling, general and administrative expenses	16			370			—			68			25			(1)	—			479
RSC merger related costs	—			8			—			—			—				—			8
Restructuring charge	—			12			—			—			—				—			12
Non-rental depreciation and amortization	13			157			—			15			—				—			185
Operating (loss) income	(29		)	674			—			116			(25		)		—			736
Interest expense (income), net	9			341			4			2			4				(3		)	357
Interest expense-subordinated convertible debentures	3			—			—			—			—				—			3
Other (income) expense, net	(100		)	143			—			14			(60		)		—			(3		)
Income (loss) before provision (benefit) for income taxes	59			190			(4		)	100			31				3			379
Provision (benefit) for income taxes	21			72			(1		)	27			13				—			132
Income (loss) before equity in net earnings (loss) of subsidiaries	38			118			(3		)	73			18				3			247
Equity in net earnings (loss) of subsidiaries	209			91			73			—			—				(373		)	—
Net income (loss)	247			209			70			73			18				(370		)	247
Other comprehensive (loss) income	(31		)	(31		)	(30		)	(24		)	—				85			(31		)
Comprehensive income (loss)	$	216		$	178		$	40		$	49		$	18			$	(285	)	$	216

(1) Includes $23 of bad debt expense which was previously reflected within URNA, $6 of which relates to prior periods.

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

For the Nine Months Ended September 30, 2012

	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
										Foreign		SPV (1)
Revenues:
Equipment rentals	$	—		$	1,821		$	249		$	349	$	—		$	—		$	2,419
Sales of rental equipment	—			194			32			32		—			—			258
Sales of new equipment	—			39			7			18		—			—			64
Contractor supplies sales	—			43			7			14		—			—			64
Service and other revenues	—			41			8			14		—			—			63
Total revenues	—			2,138			303			427		—			—			2,868
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			730			117			144		—			—			991
Depreciation of rental equipment	—			375			50			66		—			—			491
Cost of rental equipment sales	—			136			20			19		—			—			175
Cost of new equipment sales	—			31			6			14		—			—			51
Cost of contractor supplies sales	—			31			5			9		—			—			45
Cost of service and other revenues	—			16			2			5		—			—			23
Total cost of revenues	—			1,319			200			257		—			—			1,776
Gross profit	—			819			103			170		—			—			1,092
Selling, general and administrative expenses	26			271			47			57		11			—			412
RSC merger related costs	—			98			—			—		—			—			98
Restructuring charge	—			90			—			3		—			—			93
Non-rental depreciation and amortization	12			105			5			12		—			—			134
Operating (loss) income	(38		)	255			51			98		(11		)	—			355
Interest expense (income), net	9			241			34			3		32			(3		)	316
Interest expense-subordinated convertible debentures	3			—			—			—		—			—			3
Other (income) expense, net	(61		)	79			10			9		(50		)	—			(13		)
Income (loss) before provision (benefit) for income taxes	11			(65		)	7			86		7			3			49
Provision (benefit) for income taxes	1			(23		)	17			17		3			—			15
Income (loss) before equity in net earnings (loss) of subsidiaries	10			(42		)	(10		)	69		4			3			34
Equity in net earnings (loss) of subsidiaries	24			66			70			—		—			(160		)	—
Net income (loss)	34			24			60			69		4			(157		)	34
Other comprehensive income (loss)	19			19			19			11		—			(49		)	19
Comprehensive income (loss)	$	53		$	43		$	79		$	80	$	4		$	(206	)	$	53

(1) Includes interest expense prior to the April 30, 2012 RSC acquisition date on debt issued in connection with the RSC acquisition discussed in note 1 to our condensed consolidated financial statements.

CONDENSED CONSOLIDATING CASH FLOW INFORMATION

For the Nine Months EndedSeptember 30, 2013

	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations		Total
										Foreign			SPV
Net cash provided by (used in) operating activities	$	21		$	948		$	3		$	150		$	(7	)	$	—	$	1,115
Net cash used in investing activities	(21		)	(1,065		)	—			(122		)	—			—		(1,208		)
Net cash provided by (used in) financing activities	—			113			(3		)	(1		)	7			—		116
Effect of foreign exchange rates	—			—			—			(4		)	—			—		(4		)
Net (decrease) increase in cash and cash equivalents	—			(4		)	—			23			—			—		19
Cash and cash equivalents at beginning of period	—			20			—			86			—			—		106
Cash and cash equivalents at end of period	$	—		$	16		$	—		$	109		$	—		$	—	$	125

CONDENSED CONSOLIDATING CASH FLOW INFORMATION

For the Nine Months EndedSeptember 30, 2012

	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations		Total
										Foreign			SPV
Net cash provided by (used in) operating activities	$	8		$	515		$	150		$	111		$	(289	)	$	—	$	495
Net cash used in investing activities	(8		)	(1,820		)	(154		)	(84		)	—			—		(2,066		)
Net cash provided by (used in) financing activities	—			1,315			4			(6		)	289			—		1,602
Effect of foreign exchange rates	—			—			—			1			—			—		1
Net increase in cash and cash equivalents	—			10			—			22			—			—		32
Cash and cash equivalents at beginning of period	—			6			—			30			—			—		36
Cash and cash equivalents at end of period	$	—		$	16		$	—		$	52		$	—		$	—	$	68