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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $)
In Millions, except Share data, unless otherwise specified
Total
Common Stock
Additional Paid-In Capital
Accumulated Deficit
Treasury Stock
Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2010   $ 1 $ 492 $ (600)   $ 87
Balance (in shares) at Dec. 31, 2010   61,000,000        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 101     101    
Foreign currency translation adjustments (11)         (11)
Fixed price diesel swaps (1)         (1)
Stock compensation expense, net     12      
Exercise of common stock options (in shares) 1,831,000 2,000,000        
Exercise of common stock options     35      
4 percent Convertible Senior Notes (1) [1]     (45)      
Shares repurchased and retired     (7)      
Balance at Dec. 31, 2011   1 487 (499) 0 75
Balance (in shares) at Dec. 31, 2011   63,000,000     0  
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 75 [2]     75    
Foreign currency translation adjustments 8         8
Fixed price diesel swaps 1         1
RSC acquisition (in shares)   30,000,000        
RSC acquisition     1,425      
Stock compensation expense, net [3]     55      
Exercise of common stock options (in shares) 1,362,000 2,000,000        
Exercise of common stock options     21      
Conversion of subordinated convertible debentures (in shares)   1,000,000        
Conversion of subordinated convertible debentures     22      
4 percent Convertible Senior Notes (1)     8      
Shares repurchased and retired     (16)      
Repurchase of common stock (in shares)   3,000,000     3,000,000  
Repurchase of common stock         (115)  
Excess tax benefits from share-based payment arrangements, net     (5)      
Balance at Dec. 31, 2012 1,543 1 1,997 (424) (115) 84 [4]
Balance (in shares) at Dec. 31, 2012 95,891,809 93,000,000     3,000,000  
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 387 [5]     387    
Foreign currency translation adjustments (65)         (65) [4]
Fixed price diesel swaps 0          
Stock compensation expense, net     46      
Exercise of common stock options (in shares) 484,000 1,000,000        
Exercise of common stock options     6      
Conversion of subordinated convertible debentures (in shares)   1,000,000        
Conversion of subordinated convertible debentures     40      
4 percent Convertible Senior Notes (1) [6]     (14)      
Shares repurchased and retired     (21)      
Repurchase of common stock (in shares)   2,000,000     2,000,000  
Repurchase of common stock         (94)  
Balance at Dec. 31, 2013 $ 1,828 $ 1 $ 2,054 $ (37) $ (209) $ 19 [4]
Balance (in shares) at Dec. 31, 2013 97,966,802 93,000,000     5,000,000  
[1] Reflects a reduction due to our 4 percent Convertible Senior Notes being redeemable at December 31, 2011 (an amount equal to the unamortized portion of the original issue discount was reclassified out of stockholders’ equity (deficit) and was reflected as “temporary equity” in our consolidated balance sheet), and a reduction reflecting the excess of the cash transferred upon conversion of a portion of the 4 percent Convertible Senior Notes during the year ended December 31, 2011 over the principal amount of the converted notes, net of cash received from the option counterparties to our convertible note hedges upon the conversion. See note 12 to our consolidated financial statements for additional detail.
[2] During the fourth quarter of 2012, we recognized $13 of charges associated with the RSC acquisition. Additionally, during the quarter, we recognized restructuring charges of $6, primarily reflecting branch closure charges associated with the RSC acquisition. During the quarter, we also recognized asset impairment charges of $2 which are primarily reflected in non-rental depreciation and amortization and principally relate to write-offs of leasehold improvements and other fixed assets. During the fourth quarter of 2012, we redeemed our 10 7/8 percent Senior Notes and all of our outstanding 1 7/8 percent Convertible Senior Subordinated Notes were converted. Upon redemption/conversion, we recognized a loss of $72 in interest expense, net. The loss represents the difference between the net carrying amount and the total purchase/conversion price of these securities. During the quarter, we also recognized a benefit of $6 in cost of equipment rentals, excluding depreciation related to our provision for self-insurance reserves. Additionally, operating income for the fourth quarter 2012 included $8 of costs, in the aggregate, primarily related to the merger, which should have been recognized in the second and third quarters of 2012. There was no impact on 2012 full year operating income.
[3] Includes net stock compensation expense as reported as a separate component in our consolidated statements of cash flows, and net stock compensation expense included in “Restructuring charge” and "RSC merger related costs" as reported in our consolidated statements of cash flows.
[4] As of December 31, 2013, 2012 and 2011, the Accumulated Other Comprehensive Income balance primarily reflects foreign currency translation adjustments.
[5] The fourth quarter of 2013 includes a reduction in bad debt expense of $17 as compared to the fourth quarter of 2012 primarily due to improved receivable aging. In the fourth quarter of 2013, we recognized a benefit of $3 in cost of equipment rentals, excluding depreciation related to our provision for self-insurance reserves.
[6] Reflects amortization of the original issue discount on the 4 percent Convertible Senior Notes (an amount equal to the unamortized portion of the original issue discount is reflected as “temporary equity” in our consolidated balance sheet), and a reduction reflecting the excess of the cash transferred upon conversion of a portion of the 4 percent Convertible Senior Notes during the year ended December 31, 2013 over the principal amount of the converted notes, net of cash received from the option counterparties to our convertible note hedges upon the conversion. See note 12 to our consolidated financial statements for additional detail.