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SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Our primary measurement of segment financial performance, defined as segment "Earnings from continuing operations before income taxes" (Segment EBT), includes an allocation of costs from Central Support Services (CSS) and excludes Non-operating pension costs, net, intangible amortization expense, and certain other significant items that are not representative of our business operations and vary from period to period. The objective of the Segment 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. CSS represents those costs incurred to support all business segments, including information technology, finance, marketing, human resources, legal, and safety. These costs are allocated based on various methods, including resource utilization, personnel supported and utilization-related metrics. 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.

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. Segment 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”).

The following table sets forth financial information regularly provided and reviewed by our Chair and Chief Executive Officer (our Chief Operating Decision Maker), to analyze financial performance, make strategic decisions and allocate resources. The table also provides a reconciliation between Segment EBT and Earnings from continuing operations before income taxes (in millions):

Three months ended March 31, 2025
FMSSCSDTS
Elimination (1)
Total
Revenue $1,447 $1,331 $602 (249)$3,131 
Direct operating costs1,154 1,182 565 
Used vehicle sales, net(9)— — 
Other segment items (2)
208 62 10 
Segment EBT$94 $87 $27 (33)175 
Unallocated Central Support Services(20)
Intangible amortization expense (3)
(13)
Non-operating pension costs, net (4)
(9)
Other items impacting comparability, net
1 
Earnings from continuing operations before income taxes$134 
Three months ended March 31, 2024
Revenue$1,455 $1,302 $563 (222)$3,098 
Direct operating costs1,171 1,175 524 
Used vehicle sales, net(20)— — 
Other segment items (2)
204 63 21 
Segment EBT$100 $64 $18 (28)154 
Unallocated Central Support Services(14)
Intangible amortization expense (3)
(11)
Non-operating pension costs, net (4)
(11)
Other items impacting comparability, net
(4)
Earnings from continuing operations before income taxes$114 
_______________ 
(1)Represents the intercompany revenues in our FMS business segment and Inter-Segment EBT.
(2)Other segment items for each reportable segment include indirect costs and also include Equipment Contribution for SCS and DTS. 
(3)Included within "Selling, general and administrative expenses" in our Condensed Consolidated Statements of Earnings.
(4)Refer to Note 14, "Employee Benefit Plans," for further discussion.
The following tables sets forth additional segment items for the periods presented (in millions):
Depreciation expense (1)
Other non-cash charges, net (2)
Three months ended March 31,2025202420252024
FMS$396 $397 $47 $35 
SCS27 26 70 65 
DTS2 1 4 18 
CSS— — 14 13 
Total$425 $424 $135 $131 

Interest expense (3)
Purchases of property and revenue earning equipment
Three months ended March 31,2025202420252024
FMS$94 $86 $482 $654 
SCS4 4 27 27 
DTS2 2 1 1 
CSS— — 4 4 
Total$100 $92 $514 $686 
__________________ 
(1)Depreciation expense totaling $7 million in 2025 and $7 million in 2024 associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization.
(2)Primarily includes operating lease ROU assets amortization.
(3)Interest expense was primarily allocated to the FMS segment since such borrowings were used principally to fund the purchase of FMS revenue earning equipment..