Segment Information

6 Months Ended

Jun. 30, 2020

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 tables set forth financial information by segment.


	General rentals		Trench, power and fluid solutions		Total
Three Months Ended June 30, 2020
Equipment rentals	$	1,255	$	387	$	1,642
Sales of rental equipment	158		18		176
Sales of new equipment	45		8		53
Contractor supplies sales	15		8		23
Service and other revenues	39		6		45
Total revenue	1,512		427		1,939
Depreciation and amortization expense	401		89		490
Equipment rentals gross profit	419		181		600
Three Months Ended June 30, 2019
Equipment rentals	$	1,527	$	433	$	1,960
Sales of rental equipment	180		17		197
Sales of new equipment	52		8		60
Contractor supplies sales	19		8		27
Service and other revenues	40		6		46
Total revenue	1,818		472		2,290
Depreciation and amortization expense	416		88		504
Equipment rentals gross profit	593		199		792
Six Months Ended June 30, 2020
Equipment rentals	$	2,649	$	776	$	3,425
Sales of rental equipment	348		36		384
Sales of new equipment	98		17		115
Contractor supplies sales	31		17		48
Service and other revenues	80		12		92
Total revenue	3,206		858		4,064
Depreciation and amortization expense	838		178		1,016
Equipment rentals gross profit	867		343		1,210
Capital expenditures	377		78		455
Six Months Ended June 30, 2019
Equipment rentals	$	2,950	$	805	$	3,755
Sales of rental equipment	358		31		389
Sales of new equipment	107		15		122
Contractor supplies sales	36		15		51
Service and other revenues	77		13		90
Total revenue	3,528		879		4,407
Depreciation and amortization expense	828		175		1,003
Equipment rentals gross profit	1,094		356		1,450
Capital expenditures	1,015		211		1,226


	June 30, 2020		December 31, 2019
Total reportable segment assets
General rentals	$	15,109	$	16,036
Trench, power and fluid solutions	2,791		2,934
Total assets	$	17,900	$	18,970

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,
	2020		2019		2020		2019
Total equipment rentals gross profit	$	600	$	792	$	1,210	$	1,450
Gross profit from other lines of business	101		119		218		222
Selling, general and administrative expenses	(222)		(271)		(489)		(551)
Merger related costs	—		—		—		(1)
Restructuring charge	(3)		(6)		(5)		(14)
Non-rental depreciation and amortization	(95)		(105)		(195)		(209)
Interest expense, net	(130)		(180)		(266)		(331)

Other income, net	—		2		4		5
Income before provision for income taxes	$	251	$	351	$	477	$	571