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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2023
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 from continuing operations before income taxes” (EBT), includes an allocation of costs from Central Support Services (CSS) and excludes Non-operating pension costs, net, intangible amortization expense, and certain other items as discussed in Note 20, "Other Items Impacting Comparability." CSS represents those costs incurred to support all business segments, including finance, 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”). 

In 2023, we revised our primary measure of segment financial performance to exclude intangible amortization expense. We revised the presentation of the prior periods to conform to the current period presentation. This change did not have a material impact to segment results. 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 ROU 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)202320222021
Revenue:
Fleet Management Solutions:
ChoiceLease$3,181 $3,101 $3,064 
Commercial rental1,178 1,338 1,077 
SelectCare and other694 624 538 
FMS Europe (1)
— 150 262 
Fuel services revenue
877 1,114 739 
Fleet Management Solutions5,930 6,327 5,680 
Supply Chain Solutions4,875 4,720 3,155 
Dedicated Transportation Solutions1,785 1,786 1,457 
Eliminations (2)
(807)(822)(629)
Total revenue$11,783 $12,011 $9,663 
Earnings from continuing operations before income taxes:
Fleet Management Solutions$665 $1,057 $665 
Supply Chain Solutions231 218 123 
Dedicated Transportation Solutions121 103 49 
Eliminations(95)(114)(78)
922 1,264 759 
Unallocated Central Support Services(72)(83)(69)
Intangible amortization expense (3)
(35)(37)(8)
Non-operating pension costs, net (4)
(40)(11)1 
Other items impacting comparability, net (5)
(157)83 10 
Earnings from continuing operations before income taxes$618 $1,216 $693 
_______________ 
(1)Refer to Note 20, “Other Items Impacting Comparability,” for further information on the FMS U.K. business exit
(2)Represents the elimination of intercompany revenues in our FMS business segment.
(3)Included within "Selling, general and administrative expenses" in our Consolidated Statements of Earnings. Refer to Note 9, "Intangible Assets, Net," for a discussion on this item.
(4)Refer to Note 19, "Employee Benefit Plans," for a discussion on this items.
(5)Refer to Note 20, “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, interest expense (income), capital expenditures paid and total assets for the years ended December 31, 2023, 2022 and 2021, as provided to the chief operating decision maker for each of our business segments:
(In millions)FMSSCSDTSCSSEliminationsTotal
2023
Depreciation expense (1)
$1,571 136 3 2 $— $1,712 
Other non-cash charges, net (2)
$106 230 8 (6)— $338 
Interest expense (income) (3)
$292 8 (3)(1)— $296 
Capital expenditures paid$3,085 117 1 31 — $3,234 
Total assets$11,588 3,717 384 1,026 (937)$15,778 
2022
Depreciation expense (1)
$1,618 91 3 1 — $1,713 
Other non-cash charges, net (2)
$90 173 4 13 — $280 
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 
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 
_______________ 
(1)Depreciation expense totaling $28 million in 2023, $27 million in 2022, and $26 million in 2021 associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization.
(2)Primarily includes amortization of operating lease ROU 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)20232022
Long-lived assets:
United States$9,473 $8,755 
Foreign:
Canada552 494 
Europe— 22 
Mexico84 67 
636 583 
Total$10,109 $9,338