REVENUE EARNING EQUIPMENT



	Estimated Useful Lives	December 31, 2015					December 31, 2014
	Estimated Useful Lives	Cost		Accumulated Depreciation		Net Book Value ⁽¹⁾	Cost	Accumulated Depreciation		Net Book Value ⁽¹⁾
	(In years)	(In thousands)
Held for use:
Full service lease	3 — 12	$	8,839,941	(2,723,605	)	6,116,336	8,008,123	(2,598,140	)	5,409,983
Commercial rental	4.5 — 12	2,811,715		(907,412	)	1,904,303	2,570,081	(864,543	)	1,705,538
Held for sale		496,634		(332,538	)	164,096	312,698	(226,333	)	86,365
Total		$	12,148,290	(3,963,555	)	8,184,735	10,890,902	(3,689,016	)	7,201,886

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(1)	Revenue earning equipment, net includes vehicles under capital leases of $47 million, less accumulated depreciation of $22 million, at December 31, 2015 and $48 million, less accumulated depreciation of $22 million, at December 31, 2014.

Depreciation expense was $1.06 billion, $979 million and $910 million in 2015, 2014 and 2013, respectively. Revenue earning equipment held for sale is stated at the lower of carrying amount or fair value less costs to sell. Losses on vehicles held for sale for which carrying values exceeded fair value are recognized at the time they arrive at our used truck centers and are presented within "Other operating expenses" in the Consolidated Statements of Earnings. For revenue earning equipment held for sale, we stratify our fleet by vehicle type (trucks, tractors and trailers), weight class, age and other relevant characteristics and create classes of similar assets for analysis purposes. Fair value was determined based upon recent market prices obtained from our own sales experience for sales of each class of similar assets and vehicle condition. Therefore, our revenue earning equipment held for sale was classified within Level 3 of the fair value hierarchy. During 2015, 2014, and 2013, we recognized losses to reflect changes in fair value of $18 million, $11 million and $16 million, respectively.

The following table presents our assets that are measured at fair value on a nonrecurring basis and considered a Level 3 fair value measurement:



				Total Losses ⁽²⁾
	December 31,			Year ended December 31,
	2015		2014	2015		2014
Assets held for sale:
Revenue earning equipment: ⁽¹⁾
Trucks	$	11,469	6,135	$	7,660	6,274
Tractors	19,479		4,054	7,620		3,450
Trailers	2,475		789	2,676		1,040
Total assets at fair value	$	33,423	10,978	$	17,956	10,764

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(1)	Represents the portion of all revenue earning equipment held for sale that is recorded at fair value, less costs to sell.


(2)	Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value less costs to sell was less than carrying value.