REVENUE EARNING EQUIPMENT, NET



	March 31, 2019					December 31, 2018
	Cost		Accumulated Depreciation		Net Book Value ⁽¹⁾	Cost	Accumulated Depreciation		Net Book Value ⁽¹⁾
	(In thousands)
Held for use:
ChoiceLease	$	11,331,946	(3,743,391	)	7,588,555	10,824,989	(3,645,655	)	7,179,334
Commercial rental	3,315,660		(1,047,437	)	2,268,223	3,152,908	(1,047,346	)	2,105,562
Held for sale	537,173		(384,790	)	152,383	467,093	(336,028	)	131,065
Total	$	15,184,779	(5,175,618	)	10,009,161	14,444,990	(5,029,029	)	9,415,961

————————————


(1)	Revenue earning equipment, net includes vehicles under finance leases of $12 million, less accumulated depreciation of $6 million, at March 31, 2019, and $23 million, less accumulated depreciation of $13 million, at December 31, 2018.

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 sales centers and are presented within “Used vehicle sales, net” in the Consolidated Condensed 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. For a certain population of our revenue earning equipment held for sale, 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. Expected declines in market prices were also considered when valuing the vehicles held for sale. These vehicles held for sale were classified within Level 3 of the fair value hierarchy.

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



				Total Losses ⁽²⁾
	March 31,		December 31,	Three months ended March 31,
	2019		2018	2019		2018
	(In thousands)
Assets held for sale:
Revenue earning equipment ⁽¹⁾:
Trucks	$	41,813	44,325	$	11,546	8,601
Tractors	43,269		35,397	4,968		3,377
Trailers	1,547		1,507	180		1,593
Total assets at fair value	$	86,629	81,229	$	16,694	13,571

————————————


(1)	Assets held for sale in the above table only include the portion of revenue earning equipment held for sale where net book values exceeded fair values and fair value adjustments were recorded. The net book value of assets held for sale that were less than fair value was $66 million and $50 million as of March 31, 2019 and December 31, 2018, respectively.


(2)	Total losses represent fair value adjustments for all vehicles reclassified to held for sale throughout the period for which fair value was less than net book value.

The components of used vehicle sales, net were as follows:



	Three months ended March 31,
	2019			2018
	(In thousands)
Gains on vehicle sales, net	$	(8,477	)	(6,140	)
Losses from fair value adjustments	16,694			13,571
Used vehicle sales, net	$	8,217		7,431

We own the majority of our revenue earning equipment. Revenue earning equipment that we lease as a lessee are immaterial, and are therefore not separately disclosed from owned revenue earning equipment.