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Revenue
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue
Note 3: Revenue
Revenue Disaggregation
Geographic Areas
The Company had total revenue in the following geographic areas:
Three Months Ended June 30,Six Months Ended June 30,
(in $000s)2023202220232022
United States$442,501 $352,334 $880,779 $709,231 
Canada14,329 9,772 28,214 19,351 
Total revenue$456,830 $362,106 $908,993 $728,582 
Major Product Lines and Services
Equipment leasing and equipment sales are the core businesses of the Company, with leasing complemented by the sale of rental units from the rental fleet. The Company’s revenue by major product and service line for the three and six months ended June 30, 2023 and 2022 are presented in the table below.
Three Months Ended June 30,Three Months Ended June 30,
20232022
(in $000s)Topic 842Topic 606TotalTopic 842Topic 606Total
Rental:
Rental$114,620 $— $114,620 $107,445 $— $107,445 
Shipping and handling— 7,549 7,549 — 4,610 4,610 
Total rental revenue114,620 7,549 122,169 107,445 4,610 112,055 
Sales and services:
Equipment sales19,603 282,514 302,117 3,879 214,627 218,506 
Parts and services6,938 25,606 32,544 5,759 25,786 31,545 
Total sales and services26,541 308,120 334,661 9,638 240,413 250,051 
Total revenue$141,161 $315,669 $456,830 $117,083 $245,023 $362,106 
Six Months Ended June 30,Six Months Ended June 30,
20232022
(in $000s)Topic 842Topic 606TotalTopic 842Topic 606Total
Rental:
Rental$227,523 $— $227,523 $212,580 $— $212,580 
Shipping and handling— 12,934 12,934 — 8,620 8,620 
Total rental revenue227,523 12,934 240,457 212,580 8,620 221,200 
Sales and services:   
Equipment sales43,775 559,632 603,407 16,116 429,576 445,692 
Parts and services11,753 53,376 65,129 7,979 53,711 61,690 
Total sales and services55,528 613,008 668,536 24,095 483,287 507,382 
Total revenue$283,051 $625,942 $908,993 $236,675 $491,907 $728,582 
Rental revenue is primarily comprised of revenues from rental agreements and freight charges billed to customers. Equipment sales recognized pursuant to sales-type leases are recorded within equipment sales revenue. Charges to customers for damaged rental equipment are recorded within parts and services revenue.
Receivables, Contract Assets and Liabilities
As of June 30, 2023 and December 31, 2022, the Company had net receivables related to contracts with customers of $60.5 million and $98.0 million, respectively. As of June 30, 2023 and December 31, 2022, the Company had net receivables related to rental contracts and other of $91.5 million and $95.1 million, respectively.
The Company manages credit risk associated with its accounts receivable at the customer level. Because the same customers generate the revenues that are accounted for under both Topic 606 and Topic 842, the discussions below on credit risk and the Company's allowance for credit losses address the Company's total revenues.
The Company’s allowance for credit losses reflects its estimate of the amount of receivables that it will be unable to collect. The estimated losses are based upon a review of outstanding receivables, the related aging, including specific accounts if deemed necessary, and on the Company’s historical collection experience. The estimated losses are calculated using the loss rate method based upon a review of outstanding receivables, related aging, and historical collection experience. The Company's estimates reflect changing circumstances, including changes in the economy or in the particular circumstances of individual customers, and, as a result, the Company may be required to increase or decrease its allowance.
Accounts receivable, net consisted of the following:
(in $000s)June 30, 2023December 31, 2022
Accounts receivables$168,626 $212,347 
Less: allowance for doubtful accounts(16,673)(19,241)
Accounts receivable, net$151,953 $193,106 
When customers are billed for rentals in advance of the rental period, the Company defers recognition of revenue. As of June 30, 2023 and December 31, 2022, the Company had approximately $2.6 million and $3.0 million, respectively, of deferred rental revenue. Additionally, the Company collects deposits from customers for orders placed for equipment and rentals. The Company had approximately $27.5 million and $29.6 million in deposits as of June 30, 2023 and December 31, 2022, respectively. Of the $29.6 million deposit liability balance as of December 31, 2022, $27.3 million was recorded as revenue during the six months ended June 30, 2023 due to performance obligations being satisfied. The Company’s remaining performance obligations on its equipment deposit liabilities have original expected durations of one year or less.
The Company does not have material contract assets, and as such did not recognize any material impairments of any contract assets.
The primary costs to obtain contracts for new and rental unit sales with the Company's customers are commissions. The Company pays its sales force commissions related to the sale and rental of new and used units. For new unit and rental unit sales, the period benefited by each commission is less than one year. As a result, the Company has applied the practical expedient for incremental costs of obtaining a sales contract and expenses commissions as incurred.