XML 22 R11.htm IDEA: XBRL DOCUMENT v3.25.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 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" (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. 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 tables sets forth financial information for each of our segments and provides a reconciliation between segment EBT and Earnings from continuing operations before income taxes (in millions):
Three months ended September 30, 2025
FMSSCSDTS
Elimination (1)
Total
Revenue $1,465 $1,380 $570 $(244)$3,171 
Direct operating costs1,118 1,227 527 
Used vehicle sales, net(3)— — 
Other segment items (2)
204 67 7 
Segment EBT$146 $86 $36 (33)235 
Unallocated Central Support Services(21)
Intangible amortization expense (3)
(14)
Non-operating pension costs, net (4)
(10)
Earnings from continuing operations before income taxes$190 
Three months ended September 30, 2024
Revenue$1,470 $1,317 $633 $(252)$3,168 
Direct operating costs1,154 1,166 580 
Used vehicle sales, net(15)— — 
Other segment items (2)
199 58 17 
Segment EBT$132 $93 $36 (34)227 
Unallocated Central Support Services(17)
Intangible amortization expense (3)
(11)
Non-operating pension costs, net (4)
(10)
Other items impacting comparability, net
(1)
Earnings from continuing operations before income taxes$188 
_______________ 
(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 13, Employee Benefit Plans," for further discussion.
Nine months ended September 30, 2025
FMSSCSDTS
Elimination (1)
Total
Revenue $4,379 $4,077 $1,778 $(744)$9,490 
Direct operating costs3,402 3,612 1,653 
Used vehicle sales, net(10)— — 
Other segment items (2)
621 194 25 
Segment EBT$366 $271 $100 (100)637 
Unallocated Central Support Services(63)
Intangible amortization expense (3)
(39)
Non-operating pension costs, net (4)
(27)
Earnings from continuing operations before income taxes$508 
Nine months ended September 30, 2024
Revenue$4,403 $3,960 $1,831 $(747)$9,447 
Direct operating costs3,489 3,538 1,689 
Used vehicle sales, net(54)— — 
Other segment items (2)
603 180 51 
Segment EBT$365 $242 $91 (97)601 
Unallocated Central Support Services(52)
Intangible amortization expense (3)
(33)
Non-operating pension costs, net (4)
(31)
Other items impacting comparability, net
(5)
Earnings from continuing operations before income taxes$480 
_______________ 
(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 13, Employee Benefit Plans," for further discussion.
The following table sets forth depreciation expense and other non-cash charges, net, interest expense and purchase of property and revenue earning equipment for the three and nine months ended September 30, 2025 and 2024, as provided to the chief operating decision maker (CODM) for each of our business segments. Total assets of our business segments are not provided to the CODM.

(In millions)
Depreciation expense and other non-cash charges, net (1)
Interest expense
Purchases of property and revenue earning equipment
Three months ended September 30,202520242025202420252024
FMS$435 $426 $95 $92 $464 $576 
SCS101 94 5 4 58 15 
DTS3 6 2 2 1 — 
CSS16 10 — — 4 8 
Total$555 $536 $102 $98 $527 $599 


(In millions)
Depreciation expense and other non-cash charges, net (1)
Interest expense
Purchases of property and revenue earning equipment
Nine months ended September 30,202520242025202420252024
FMS$1,316 $1,306 $284 $268 $1,601 $1,866 
SCS295 281 14 12 115 45 
DTS14 28 6 6 2 1 
CSS45 37 — — 12 10 
Total$1,670 $1,652 $304 $286 $1,730 $1,922 
_______________ 
(1)Other non-cash charges, net primarily includes operating lease right-of-use (ROU) assets amortization.