SEGMENT REPORTING

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Our primary measurement of segment financial performance, defined as segment "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 14, "Other Items Impacting Comparability." 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. 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.

The following table sets forth financial information for each of our segments and provides a reconciliation between segment EBT and Earnings from continuing operations before income taxes:

	Three months ended March 31,
(In millions)	2024		2023
Revenue:
Fleet Management Solutions:
ChoiceLease	$	842	$	776
Commercial rental	231		304
SelectCare and other	178		182
Fuel services revenue	204		241
Fleet Management Solutions	1,455		1,503
Supply Chain Solutions	1,302		1,201
Dedicated Transportation Solutions	563		454
Eliminations (1)	(222)		(206)
Total revenue	$	3,098	$	2,952
Earnings from continuing operations before income taxes:
Fleet Management Solutions	$	100	$	182
Supply Chain Solutions	64		17
Dedicated Transportation Solutions	18		29
Eliminations	(28)		(25)
	154		203
Unallocated Central Support Services	(14)		(15)
Intangible amortization expense (2)	(11)		(9)
Non-operating pension costs, net (3)	(11)		(10)
Other items impacting comparability, net (4)	(4)		32
Earnings from continuing operations before income taxes	$	114	$	201

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(1)Represents the elimination of intercompany revenues in our FMS business segment.

(2)Included within "Selling, general and administrative expenses" in our Condensed Consolidated Statements of Earnings.

(3)Refer to Note 13, "Employee Benefit Plans," for a discussion on this item.

(4)Refer to Note 14, "Other Items Impacting Comparability," for a discussion of items excluded from our primary measure of segment performance.

The following table sets forth the capital expenditures paid for each of our segments:

	Three months ended March 31,
(In millions)	2024		2023
Fleet Management Solutions	$	654	$	621
Supply Chain Solutions	27		12
Dedicated Transportation Solutions	1		—
Central Support Services	4		8
Purchases of property and revenue earning equipment	$	686	$	641