Segment Information

12 Months Ended

Dec. 31, 2018

Our two reportable segments are i) general rentals and ii) trench, power and fluid solutions. 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 11 geographic regions—Carolinas, Gulf South, Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Mid Central, Midwest, Northeast, Pacific West, South, Southeast and Western Canada—and operates throughout the United States and Canada. We periodically review the size and geographic scope of our regions, and have occasionally reorganized the regions to create a more balanced and effective structure.

The trench, power and fluid solutions 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) fluid solutions equipment primarily used for fluid containment, transfer and treatment. The trench, power and fluid solutions 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, iii) the Fluid Solutions region and iv) the Fluid Solutions Europe region. The trench, power and fluid solutions segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment operates throughout the United States and in Canada and Europe.

The following table presents the percentage of equipment rental revenue by equipment type for the years ended December 31, 2018, 2017 and 2016:



	Year Ended December 31,
	2018		2017		2016
Primarily rented by our general rentals segment:
General construction and industrial equipment	44	%	43	%	43	%
Aerial work platforms	28	%	32	%	32	%
General tools and light equipment	8	%	7	%	8	%
Primarily rented by our trench, power and fluid solutions segment:
Power and HVAC equipment	8	%	7	%	7	%
Trench safety equipment	6	%	6	%	6	%
Fluid solutions equipment	6	%	5	%	4	%

These segments align our external segment reporting with how management evaluates business performance and allocates resources. We evaluate segment performance based on segment equipment rentals gross profit.

The accounting policies for our segments are the same as those described in the summary of significant accounting policies in note 2. Certain corporate costs, including those related to selling, finance, legal, risk management, human resources, corporate management and information technology systems, are deemed to be of an operating nature and are allocated to our segments based primarily on rental fleet size.

The following table sets forth financial information by segment as of and for the years ended December 31, 2018, 2017 and 2016:



	General rentals		Trench, power and fluid solutions		Total
2018
Equipment rentals	$	5,550	$	1,390	$	6,940
Sales of rental equipment	619		45		664
Sales of new equipment	186		22		208
Contractor supplies sales	68		23		91
Service and other revenues	127		17		144
Total revenue	6,550		1,497		8,047
Depreciation and amortization expense	1,410		261		1,671
Equipment rentals gross profit	2,293		670		2,963
Capital expenditures	1,980		311		2,291
Total assets	$	15,597	$	2,536	$	18,133
2017
Equipment rentals	$	4,727	$	988	$	5,715
Sales of rental equipment	509		41		550
Sales of new equipment	159		19		178
Contractor supplies sales	65		15		80
Service and other revenues	105		13		118
Total revenue	5,565		1,076		6,641
Depreciation and amortization expense	1,188		195		1,383
Equipment rentals gross profit	1,950		490		2,440
Capital expenditures	1,675		214		1,889
Total assets	$	13,351	$	1,679	$	15,030
2016
Equipment rentals	$	4,166	$	775	$	4,941
Sales of rental equipment	459		37		496
Sales of new equipment	128		16		144
Contractor supplies sales	64		15		79
Service and other revenues	91		11		102
Total revenue	4,908		854		5,762
Depreciation and amortization expense	1,066		179		1,245
Equipment rentals gross profit	1,725		364		2,089
Capital expenditures	1,189		150		1,339
Total assets	$	10,496	$	1,492	$	11,988

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 (benefit) for income taxes:



	Year Ended December 31,
	2018			2017			2016
Total equipment rentals gross profit	$	2,963		$	2,440		$	2,089
Gross profit from other lines of business	401			329			314
Selling, general and administrative expenses	(1,038		)	(903		)	(719		)
Merger related costs	(36		)	(50		)	—
Restructuring charge	(31		)	(50		)	(14		)
Non-rental depreciation and amortization	(308		)	(259		)	(255		)
Interest expense, net	(481		)	(464		)	(511		)
Other income, net	6			5			5
Income before provision (benefit) for income taxes	$	1,476		$	1,048		$	909

We operate in the United States, Canada and Europe. As discussed in note 4 to the consolidated financial statements, in July 2018, we completed the acquisition of BakerCorp, which allowed for our entry into select European markets. Our presence in Europe is limited, and the foreign information in the table below primarily reflects Canada. The following table presents geographic area information for the years ended December 31, 2018, 2017 and 2016, except for balance sheet information, which is presented as of December 31, 2018 and 2017:



	Domestic		Foreign		Total
2018
Equipment rentals	$	6,388	$	552	$	6,940
Sales of rental equipment	609		55		664
Sales of new equipment	184		24		208
Contractor supplies sales	80		11		91
Service and other revenues	126		18		144
Total revenue	7,387		660		8,047
Rental equipment, net	8,910		690		9,600
Property and equipment, net	559		55		614
Goodwill and other intangibles, net	$	5,665	$	477	$	6,142
2017
Equipment rentals	$	5,253	$	462	$	5,715
Sales of rental equipment	494		56		550
Sales of new equipment	157		21		178
Contractor supplies sales	70		10		80
Service and other revenues	102		16		118
Total revenue	6,076		565		6,641
Rental equipment, net	7,264		560		7,824
Property and equipment, net	425		42		467
Goodwill and other intangibles, net	$	4,642	$	315	$	4,957
2016
Equipment rentals	$	4,524	$	417	$	4,941
Sales of rental equipment	444		52		496
Sales of new equipment	129		15		144
Contractor supplies sales	68		11		79
Service and other revenues	87		15		102
Total revenue	$	5,252	$	510	$	5,762