Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

SEGMENT REPORTING

(U) SEGMENT REPORTING

     Our operating segments are aggregated into reportable business segments based upon similar economic characteristics, products, services, customers and delivery methods. We operate in three reportable business segments: (1) FMS, which provides full service leasing, contract maintenance, contract-related maintenance and commercial rental of trucks, tractors and trailers to customers, principally in the U.S., Canada and the U.K.; (2) SCS, which provides comprehensive supply chain consulting including distribution and transportation services in North America and Asia; and (3) DCC, which provides vehicles and drivers as part of a dedicated transportation solution in the U.S.

     Our primary measurement of segment financial performance, defined as “Net Before Taxes” (NBT), includes an allocation of Central Support Services (CSS) and excludes restructuring and other charges, net described in Note (G), “Restructuring and Other Charges” and excludes the items discussed in Note (S), “Other Items Impacting Comparability.” CSS represents those costs incurred to support all business segments, including human resources, finance, corporate services, public affairs, information technology, health and safety, legal and corporate communications. The objective of the NBT measurement is to provide clarity on the profitability of each business segment and, ultimately, to hold leadership of each business segment and each operating segment within each business segment accountable for their allocated share of CSS costs. Certain costs are considered to be overhead not attributable to any segment and remain unallocated in CSS. Included among the unallocated overhead remaining within CSS are the costs for investor relations, public affairs and certain executive compensation.

     Our FMS segment leases revenue earning equipment and provides fuel, maintenance and other ancillary services to the SCS and DCC segments. Inter-segment revenue and NBT are accounted for at rates similar to those executed with third parties. NBT related to inter-segment equipment and services billed to customers (equipment contribution) are included in both FMS and the business segment which served the customer and then eliminated (presented as “Eliminations”).

     The following tables set forth financial information for each of our business segments and reconciliation between segment NBT and earnings from continuing operations before income taxes for the three months ended June 30, 2011 and 2010. 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.

	FMS		SCS		DCC		Eliminations			Total
	(In thousands)
For the three months ended June 30, 2011
Revenue from external customers	$	973,367		389,578		150,399		—			1,513,344
Inter-segment revenue		91,143		—		—		(91,143	)		—
Total revenue	$	1,064,510		389,578		150,399		(91,143	)		1,513,344
Segment NBT	$	67,504		17,231		9,761		(6,529	)		87,967
Unallocated CSS											(11,230	)
Restructuring and other charges, net											(1,727	)
Earnings from continuing operations before income taxes										$	75,010
Segment capital expenditures (1), (2)	$	484,778		13,963		1,079		—			499,820
Unallocated CSS											4,339
Capital expenditures paid										$	504,159
For the three months ended June 30, 2010
Revenue from external customers	$	853,020		310,079		123,024		—			1,286,123
Inter-segment revenue		78,153		—		—		(78,153	)		—
Total revenue	$	931,173		310,079		123,024		(78,153	)		1,286,123
Segment NBT	$	46,226		12,559		8,432		(5,143	)		62,074
Unallocated CSS											(9,867	)
Earnings from continuing operations before income taxes										$	52,207
Segment capital expenditures (1)	$	338,797		1,996		379		—			341,172
Unallocated CSS											3,116
Capital expenditures paid										$	344,288

(1)	Excludes revenue earning equipment acquired under capital leases.
(2)	Excludes acquisition payments of $264.8 million during the three months ended June 30, 2011.

	FMS		SCS		DCC		Eliminations			Total
	(In thousands)
For the six months ended June 30, 2011
Revenue from external customers	$	1,862,983		790,616		285,121		—			2,938,720
Inter-segment revenue		181,643		—		—		(181,643	)		—
Total revenue	$	2,044,626		790,616		285,121		(181,643	)		2,938,720
Segment NBT	$	106,066		29,295		17,159		(11,433	)		141,087
Unallocated CSS											(19,972	)
Restructuring and other charges, net											(2,495	)
Earnings from continuing operations before income taxes										$	118,620
Segment capital expenditures (1), (2)	$	786,750		20,103		2,038		—			808,891
Unallocated CSS											8,486
Capital expenditures paid										$	817,377
For the six months ended June 30, 2010
Revenue from external customers	$	1,662,409		604,286		239,366		—			2,506,061
Inter-segment revenue		152,747		—		—		(152,747	)		—
Total revenue	$	1,815,156		604,286		239,366		(152,747	)		2,506,061
Segment NBT	$	67,921		19,585		15,818		(9,876	)		93,448
Unallocated CSS											(18,749	)
Earnings from continuing operations before income taxes										$	74,699
Segment capital expenditures (1), (2)	$	534,285		3,497		991		—			538,773
Unallocated CSS											5,616
Capital expenditures paid										$	544,389

(1)	Excludes revenue earning equipment acquired under capital leases.
(2)	Excludes acquisition payments of $348.6 million and $2.4 million during the six months ended June 30, 2011 and 2010, respectively.