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REVENUE EARNING EQUIPMENT, NET
 12 Months Ended
Dec. 31, 2024
Revenue Earning Equipment [Abstract]  
REVENUE EARNING EQUIPMENT, NET REVENUE EARNING EQUIPMENT, NET
(In millions)Estimated
Useful
Lives		December 31, 2024December 31, 2023
CostAccumulated
Depreciation		NetCostAccumulated
Depreciation		Net
Held for use:(In years)
Trucks
3 — 7
$6,252 $(2,210)$4,042 $5,630 $(2,192)$3,438 
Tractors
   4 — 7.5
6,721 (2,739)3,982 6,995 (2,712)4,283 
Trailers and other
9.5 — 12
1,695 (671)1,024 1,686 (683)1,003 
Held for sale
781 (623)158 732 (564)168 
Total$15,449 $(6,243)$9,206 $15,043 $(6,151)$8,892 
Total depreciation expense related to revenue earning equipment primarily used in our FMS segment was $1.5 billion in 2024, 2023, and 2022.

Residual Value Estimate Changes
We periodically review and adjust, as appropriate, the estimated residual values of existing revenue earning equipment for the purposes of recording depreciation expense. Reductions in estimated residual values will increase depreciation expense over the remaining useful life of the vehicle. Conversely, an increase in estimated residual values will decrease depreciation expense over the remaining useful life of the vehicle. Our review of the estimated residual values of revenue earning equipment is based on vehicle class, (i.e., generally subcategories of trucks, tractors and trailers by weight and usage), historical and current market prices, third-party expected future market prices, expected lives of vehicles, and expected sales in the wholesale or retail markets, among other factors. A variety of factors, many of which are outside of our control, could cause residual value estimates to differ from actual used vehicle sales pricing, such as changes in supply and demand of used vehicles; volatility in market conditions; changes in vehicle technology; competitor pricing; regulatory requirements; wholesale market prices; customer requirements and preferences; and changes in underlying assumption factors. We have disciplines related to the management and maintenance of our vehicles designed to manage the risk associated with the residual values of our revenue earning equipment.

In 2024, 2023, and 2022, we did not adjust the estimated residual values of existing revenue earning equipment.
Used Vehicle Sales and Valuation Adjustments
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 exceed fair value, which we refer to as "valuation adjustments," are recognized
at the time they are deemed to meet the held for sale criteria and are presented within "Used vehicle sales, net" 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. For revenue earning equipment held for sale, fair value was determined based upon recent market prices obtained from our own sales experience for each class of similar assets and vehicle condition if available or third-party market pricing. In addition, we also consider expected declines in market prices, as well as, forecasted sales channel mix (retail/wholesale) when valuing the vehicles held for sale.

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:
 December 31,
Losses from Valuation Adjustments
(In millions)20242023202420232022
Revenue earning equipment held for sale:
Trucks$10 $5 $14 $6 $3 
Tractors27 38 12 9 5 
Trailers and other3 4 5 5 1 
Total assets at fair value$40 $47 $31 $20 $9 
The table above reflects only the portion where net book values of revenue earnings equipment held for sale exceeded fair values and valuation adjustments were recorded. The net book value of assets held for sale that were less than fair value was $118 million and $121 million as of December 31, 2024 and 2023, respectively.
The components of Used vehicle sales, net were as follows:
(In millions)202420232022
Gains on vehicle sales, net (1)
$(103)$(216)$(459)
Losses from valuation adjustments31 20 9 
Used vehicle sales, net$(72)$(196)$(450)
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(1)2023 and 2022 includes gains on used vehicles sold as part of the exit of the FMS U.K business of $2 million and $49 million, respectively.