Segment Information

12 Months Ended

Dec. 31, 2019

Our reportable segments are i) general rentals and ii) trench, power and fluid solutions. Our regions discussed below, which are our operating segments, are aggregated into our reportable segments. We believe that the regions that are aggregated into our reportable segments have similar economic characteristics, as each region is capital intensive, offers similar products to similar customers, uses similar methods to distribute its products, and is subject to similar competitive risks. The aggregation of our regions also reflects the management structure that we use for making operating decisions and assessing performance. We evaluate segment performance primarily based on segment equipment rentals gross profit.

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.

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, 2019, 2018 and 2017:



	Year Ended December 31,
	2019		2018		2017
Primarily rented by our general rentals segment:
General construction and industrial equipment	43	%	44	%	43	%
Aerial work platforms	28	%	28	%	32	%
General tools and light equipment	8	%	8	%	7	%
Primarily rented by our trench, power and fluid solutions segment:
Power and HVAC equipment	8	%	8	%	7	%
Trench safety equipment	6	%	6	%	6	%
Fluid solutions equipment	7	%	6	%	5	%

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, 2019, 2018 and 2017:



	General rentals		Trench, power and fluid solutions		Total
2019
Equipment rentals	$	6,202	$	1,762	$	7,964
Sales of rental equipment	768		63		831
Sales of new equipment	238		30		268
Contractor supplies sales	71		33		104
Service and other revenues	157		27		184
Total revenue	7,436		1,915		9,351
Depreciation and amortization expense	1,681		357		2,038
Equipment rentals gross profit	2,407		800		3,207
Capital expenditures	1,967		383		2,350
Total assets	$	16,036	$	2,934	$	18,970
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

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,
	2019			2018			2017
Total equipment rentals gross profit	$	3,207		$	2,963		$	2,440
Gross profit from other lines of business	463			401			329
Selling, general and administrative expenses	(1,092		)	(1,038		)	(903		)
Merger related costs	(1		)	(36		)	(50		)
Restructuring charge	(18		)	(31		)	(50		)
Non-rental depreciation and amortization	(407		)	(308		)	(259		)
Interest expense, net	(648		)	(481		)	(464		)
Other income, net	10			6			5
Income before provision (benefit) for income taxes	$	1,514		$	1,476		$	1,048

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, 2019, 2018 and 2017, except for balance sheet information, which is presented as of December 31, 2019 and 2018:



	Domestic		Foreign		Total
2019
Equipment rentals	$	7,283	$	681	$	7,964
Sales of rental equipment	757		74		831
Sales of new equipment	238		30		268
Contractor supplies sales	92		12		104
Service and other revenues	164		20		184
Total revenue	8,534		817		9,351
Rental equipment, net	8,995		792		9,787
Property and equipment, net	554		50		604
Goodwill and other intangible assets, net	$	5,592	$	457	$	6,049
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 intangible assets, 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