XML 32 R12.htm IDEA: XBRL DOCUMENT v3.22.4
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Our operating segments are aggregated into reportable business segments based upon similar economic characteristics, products, services, customers and delivery methods.

Our primary measurement of segment financial performance, defined as “Earnings (loss) from continuing operations before income taxes” (EBT), includes an allocation of costs from Central Support Services (CSS) and excludes Non-operating pension costs, net and certain other items as described in Note 21, "Other Items Impacting Comparability." CSS represents those costs incurred to support all business segments, including finance and procurement, corporate services, human resources, information technology, public affairs, legal, marketing and corporate communications. The objective of the EBT measurement is to provide clarity on the profitability of each business segment and, ultimately, to hold leadership of each business segment accountable for their allocated share of CSS costs. Certain costs are not attributable to any segment and remain unallocated in CSS, including costs for investor relations, public affairs and certain executive compensation. CSS costs attributable to the business segments are predominantly allocated to FMS, SCS and DTS as follows:

•Finance, corporate services, and health and safety — allocated based upon estimated and planned resource utilization;

•Human resources — individual costs within this category are allocated under various methods, including allocation based on estimated utilization and number of personnel supported;

•Information technology — principally allocated based upon utilization-related metrics such as number of users or minutes of central processing unit time. Customer-related project costs and expenses are allocated to the business segment responsible for the project; and

•Other — represents legal and other centralized costs and expenses including certain share-based incentive compensation costs. Expenses, where allocated, are based primarily on the number of personnel supported.

Our FMS segment leases revenue earning equipment and provides fuel, maintenance and other ancillary services to the SCS and DTS segments. Inter-segment EBT allocated to SCS and DTS includes earnings related to equipment used to provide services to SCS and DTS customers. EBT related to inter-segment equipment and services billed to SCS and DTS customers (equipment contribution) are included in both FMS and the segment that served the customer and then eliminated upon consolidation (presented as “Eliminations”). 

Segment results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. Each business segment follows the same accounting policies as described in Note 1, “Summary of Significant Accounting Policies.” However, we do not record right-of-use assets or liabilities for our intercompany operating leases between FMS and SCS and DTS business segments. The following tables set forth financial information for each of our segments and provide a reconciliation between segment EBT and earnings from continuing operations before income taxes.
 Years ended December 31,
(In millions)202220212020
Revenue:
Fleet Management Solutions:
ChoiceLease$3,203 $3,220 $3,160 
Commercial rental1,351 1,114 834 
SelectCare and other659 607 584 
Fuel services and ChoiceLease liability insurance (1)
1,114 739 593 
Fleet Management Solutions6,327 5,680 5,171 
Supply Chain Solutions4,720 3,155 2,544 
Dedicated Transportation Solutions1,786 1,457 1,229 
Eliminations (2)
(822)(629)(524)
Total revenue$12,011 $9,663 $8,420 
Earnings (loss) from continuing operations before income taxes:
Fleet Management Solutions$1,054 $663 $(142)
Supply Chain Solutions186 117 160 
Dedicated Transportation Solutions102 49 73 
Eliminations(115)(78)(43)
1,227 751 48 
Unallocated Central Support Services(83)(69)(77)
Non-operating pension costs, net (3)
(11)1 (11)
Other items impacting comparability, net (4)
83 10 (90)
Earnings (loss) from continuing operations before income taxes$1,216 $693 $(130)
_______________ 
(1)In the first quarter of 2021, we completed the exit of the extension of our liability insurance coverage for ChoiceLease customers.
(2)Represents the elimination of intercompany revenues in our FMS business segment.
(3)Refer to Note 19, "Employee Benefit Plans," for a discussion on these items.
(4)Refer to Note 21, “Other Items Impacting Comparability,” for a discussion of items excluded from our primary measure of segment performance.
The following table sets forth depreciation expense, other non-cash charges, net, intangible amortization expense, interest expense (income), capital expenditures paid and total assets for the years ended December 31, 2022, 2021 and 2020, as provided to the chief operating decision-maker for each of our reportable business segments:
(In millions)FMSSCSDTSCSSEliminationsTotal
2022
Depreciation expense (1)
$1,618 91 3 1 $— $1,713 
Other non-cash charges, net (2)
$90 173 4 13 — $280 
Intangible amortization expense$3 34 — — — $37 
Interest expense (income) (3)
$219 10 (2)1 — $228 
Capital expenditures paid$2,442 155 2 32 — $2,631 
Total assets$10,811 3,043 380 904 (743)$14,395 
2021
Depreciation expense (1)
$1,736 47 3 — — $1,786 
Other non-cash charges, net (2)
$39 78 3 (5)— $115 
Intangible amortization expense$2 6 — — — $8 
Interest expense (income) (3)
$214 3 (3)— — $214 
Capital expenditures paid$1,854 67 1 19 — $1,941 
Total assets$11,000 2,320 318 555 (358)$13,835 
2020
Depreciation expense (1)
$1,981 39 3 4 — $2,027 
Other non-cash charges, net (2)
$133 64 1 2 — $200 
Intangible amortization expense$3 5 — — — $8 
Interest expense (income) (3)
$255 1 (3)8 — $261 
Capital expenditures paid$1,090 38 1 17 — $1,146 
Total assets$11,275 1,313 296 328 (280)$12,932 
_______________ 
(1)Depreciation expense totaling $27 million in 2022, $26 million in 2021, and $27 million in 2020 associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization.
(2)Includes primarily amortization of operating lease right-of-use assets and sales commissions, and bad debt expense.
(3)Interest expense was primarily allocated to the FMS segment since such borrowings were used principally to fund the purchase of revenue earning equipment used in FMS; however, interest was also reflected in SCS and DTS based on targeted segment leverage ratios.

Geographic Information
 December 31,
(In millions)20222021
Long-lived assets:
United States$8,755 $8,478 
Foreign:
Canada494 531 
Europe22 242 
Mexico67 57 
583 830 
Total$9,338 $9,308