Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

Our reportable segments are i) general rentals and ii) trench, power and pump. 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 nine geographic regions—Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Midwest, Northeast, Pacific West, South-Central, South, Southeast and Western Canada—and operates throughout the United States and Canada.

The trench, power and pump 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 and iii) pumps primarily used by municipalities, industrial plants, and mining, construction, and agribusiness customers. The trench, power and pump segment is comprised of the following regions, each of which primarily rents the corresponding equipment type described above: (i) the Trench Safety region, (ii) the Power and HVAC region, and (iii) the Pump Solutions region. The trench, power and pump 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 and allocates resources. We evaluate segment performance based on segment equipment rentals gross profit.

The following tables set forth financial information by segment.

	General rentals		Trench, power and pump		Total
Three Months Ended June 30, 2016
Equipment rentals	$	1,015	$	189	$	1,204
Sales of rental equipment	125		9		134
Sales of new equipment	31		5		36
Contractor supplies sales	17		5		22
Service and other revenues	22		3		25
Total revenue	1,210		211		1,421
Depreciation and amortization expense	259		47		306
Equipment rentals gross profit	417		89		506
Three Months Ended June 30, 2015
Equipment rentals	$	1,048	$	172	$	1,220
Sales of rental equipment	116		8		124
Sales of new equipment	35		4		39
Contractor supplies sales	18		3		21
Service and other revenues	23		2		25
Total revenue	1,240		189		1,429
Depreciation and amortization expense	264		43		307
Equipment rentals gross profit	456		79		535
Six Months Ended June 30, 2016
Equipment rentals	$	1,970	$	351	$	2,321
Sales of rental equipment	231		18		249
Sales of new equipment	57		9		66
Contractor supplies sales	33		8		41
Service and other revenues	48		6		54
Total revenue	2,339		392		2,731
Depreciation and amortization expense	525		91		616
Equipment rentals gross profit	774		157		931
Capital expenditures	692		72		764
Six Months Ended June 30, 2015
Equipment rentals	$	2,024	$	321	$	2,345
Sales of rental equipment	224		16		240
Sales of new equipment	61		11		72
Contractor supplies sales	33		6		39
Service and other revenues	42		6		48
Total revenue	2,384		360		2,744
Depreciation and amortization expense	526		85		611
Equipment rentals gross profit	839		142		981
Capital expenditures	949		117		1,066

	June 30, 2016		December 31, 2015
Total reportable segment assets
General rentals	$	10,594	$	10,561
Trench, power and pump	1,526		1,522
Total assets	$	12,120	$	12,083

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						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Total equipment rentals gross profit	$	506		$	535		$	931		$	981
Gross profit from other lines of business	84			83			159			161
Selling, general and administrative expenses	(177		)	(175		)	(354		)	(356		)
Merger related costs	—			(1		)	—			26
Restructuring charge	(2		)	—			(4		)	(1		)
Non-rental depreciation and amortization	(64		)	(67		)	(131		)	(136		)
Interest expense, net	(132		)	(232		)	(239		)	(353		)
Other income, net	2			6			2			9
Income before provision for income taxes	$	217		$	149		$	364		$	331