Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 15, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-14387 | |
Entity Registrant Name | United Rentals, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-1522496 | |
Entity Address, Address Line One | 100 First Stamford Place, Suite 700 | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06902 | |
City Area Code | 203 | |
Local Phone Number | 622-3131 | |
Title of 12(b) Security | Common Stock, $.01 par value, of United Rentals, Inc. | |
Trading Symbol | URI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 77,162,794 | |
Entity Central Index Key | 0001067701 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 75 | $ 43 |
Accounts receivable, net of allowance for doubtful accounts of $107 at June 30, 2019 and $93 at December 31, 2018 | 1,525 | 1,545 |
Inventory | 135 | 109 |
Prepaid expenses and other assets | 105 | 64 |
Total current assets | 1,840 | 1,761 |
Goodwill | 5,134 | 5,058 |
Other intangible assets, net | 1,019 | 1,084 |
Operating lease right-of-use assets (note 8) | 619 | |
Other long-term assets | 18 | 16 |
Total assets | 19,047 | 18,133 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Short-term debt and current maturities of long-term debt | 995 | 903 |
Accounts payable | 752 | 536 |
Accrued expenses and other liabilities | 788 | 677 |
Total current liabilities | 2,535 | 2,116 |
Long-term debt | 10,700 | 10,844 |
Deferred taxes | 1,743 | 1,687 |
Operating lease liabilities | 497 | |
Other long-term liabilities | 94 | 83 |
Total liabilities | 15,569 | 14,730 |
Common stock—$0.01 par value, 500,000,000 shares authorized, 113,741,001 and 77,431,831 shares issued and outstanding, respectively, at June 30, 2019 and 112,907,209 and 79,872,956 shares issued and outstanding, respectively, at December 31, 2018 | 1 | 1 |
Additional paid-in capital | 2,415 | 2,408 |
Retained earnings | 4,546 | 4,101 |
Treasury stock at cost—36,309,170 and 33,034,253 shares at June 30, 2019 and December 31, 2018, respectively | (3,290) | (2,870) |
Accumulated other comprehensive loss | (194) | (237) |
Total stockholders’ equity | 3,478 | 3,403 |
Total liabilities and stockholders’ equity (deficit) | 19,047 | 18,133 |
Rental equipment, net | ||
ASSETS | ||
Property and equipment, net | 9,839 | 9,600 |
Property and equipment, net | ||
ASSETS | ||
Property and equipment, net | $ 578 | $ 614 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 107 | $ 93 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 113,741,001 | 112,907,209 |
Common stock, shares outstanding (in shares) | 77,431,831 | 79,872,956 |
Treasury stock, shares (in shares) | 36,309,170 | 33,034,253 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Revenues | $ 2,290 | $ 1,891 | $ 4,407 | $ 3,625 |
Cost of revenues: | ||||
Cost of equipment rentals, excluding depreciation | 769 | 620 | 1,511 | 1,212 |
Depreciation of rental equipment | 399 | 323 | 794 | 645 |
Total cost of revenues | 1,379 | 1,109 | 2,735 | 2,197 |
Gross profit | 911 | 782 | 1,672 | 1,428 |
Selling, general and administrative expenses | 271 | 239 | 551 | 471 |
Merger related costs | 0 | 2 | 1 | 3 |
Restructuring charge | 6 | 4 | 14 | 6 |
Non-rental depreciation and amortization | 105 | 67 | 209 | 138 |
Operating income (loss) | 529 | 470 | 897 | 810 |
Interest expense, net | 180 | 112 | 331 | 221 |
Other income, net | (2) | (1) | (5) | (2) |
Income before provision for income taxes | 351 | 359 | 571 | 591 |
Provision for income taxes | 81 | 89 | 126 | 138 |
Net income | $ 270 | $ 270 | $ 445 | $ 453 |
Basic earnings per share (in dollars per share) | $ 3.45 | $ 3.22 | $ 5.65 | $ 5.40 |
Diluted earnings per share (in dollars per share) | $ 3.44 | $ 3.20 | $ 5.62 | $ 5.34 |
Equipment rentals | ||||
Revenues: | ||||
Revenues | $ 1,960 | $ 1,631 | $ 3,755 | $ 3,090 |
Sales of rental equipment | ||||
Revenues: | ||||
Revenue from contract with customer | 197 | 157 | 389 | 338 |
Cost of revenues: | ||||
Cost of goods and services sold | 116 | 92 | 241 | 199 |
Sales of new equipment | ||||
Revenues: | ||||
Revenue from contract with customer | 60 | 44 | 122 | 86 |
Cost of revenues: | ||||
Cost of goods and services sold | 51 | 38 | 105 | 75 |
Contractor supplies sales | ||||
Revenues: | ||||
Revenue from contract with customer | 27 | 24 | 51 | 42 |
Cost of revenues: | ||||
Cost of goods and services sold | 19 | 16 | 36 | 28 |
Service and other revenues | ||||
Revenues: | ||||
Revenue from contract with customer | 46 | 35 | 90 | 69 |
Cost of revenues: | ||||
Cost of goods and services sold | $ 25 | $ 20 | $ 48 | $ 38 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 270 | $ 270 | $ 445 | $ 453 | |
Other comprehensive income (loss), net of tax: | |||||
Foreign currency translation adjustments | [1] | 22 | (21) | 42 | (46) |
Fixed price diesel swaps | 0 | 1 | 1 | 1 | |
Other comprehensive income (loss) | 22 | (20) | 43 | (45) | |
Comprehensive income (loss) | [1] | $ 292 | $ 250 | $ 488 | $ 408 |
[1] | There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive income (loss) during 2019 or 2018 . T here is no tax impact related to the foreign currency translation adjustments, as the earnings are considered permanently reinvested. We have historically considered the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested. We have not repatriated funds to the U.S. to satisfy domestic liquidity needs, nor do we anticipate the need to do so. If we determine that all or a portion of our foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. There were no material taxes associated with other comprehensive income (loss) during 2019 or 2018 . |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Material reclassifications from accumulated other comprehensive income reflected in other comprehensive income | $ 0 | $ 0 |
Tax impact related to foreign currency translation adjustments | 0 | 0 |
Material taxes associated with other comprehensive income | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | ||||
Balance (in shares) at Dec. 31, 2017 | 84 | [1] | 28 | |||||||
Balance at Dec. 31, 2017 | $ 1 | $ 2,356 | $ 3,005 | $ (2,105) | $ (151) | [2] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | $ 453 | 453 | ||||||||
Foreign currency translation adjustments | (46) | [3] | (46) | [2] | ||||||
Fixed price diesel swaps | [2] | 1 | ||||||||
Stock compensation expense, net (in shares) | [1] | 1 | ||||||||
Stock compensation expense, net | 43 | |||||||||
Exercise of common stock options | 2 | |||||||||
Shares repurchased and retired | (50) | |||||||||
Repurchase of common stock (in shares) | (2) | [1] | 2 | |||||||
Repurchase of common stock | $ (345) | |||||||||
Balance (in shares) at Jun. 30, 2018 | 83 | [1] | 30 | |||||||
Balance at Jun. 30, 2018 | $ 1 | 2,351 | 3,458 | $ (2,450) | (196) | [2] | ||||
Balance (in shares) at Mar. 31, 2018 | 84 | [1] | 29 | |||||||
Balance at Mar. 31, 2018 | $ 1 | 2,327 | 3,188 | $ (2,282) | (176) | [2] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 270 | 270 | ||||||||
Foreign currency translation adjustments | (21) | [3] | (21) | [2] | ||||||
Fixed price diesel swaps | [2] | 1 | ||||||||
Stock compensation expense, net (in shares) | [1] | 0 | ||||||||
Stock compensation expense, net | 24 | |||||||||
Exercise of common stock options | 1 | |||||||||
Shares repurchased and retired | (1) | |||||||||
Repurchase of common stock (in shares) | (1) | [1] | 1 | |||||||
Repurchase of common stock | $ (168) | |||||||||
Balance (in shares) at Jun. 30, 2018 | 83 | [1] | 30 | |||||||
Balance at Jun. 30, 2018 | $ 1 | 2,351 | 3,458 | $ (2,450) | (196) | [2] | ||||
Balance (in shares) at Dec. 31, 2018 | 80 | [1] | 33 | |||||||
Balance at Dec. 31, 2018 | 3,403 | $ 1 | 2,408 | 4,101 | $ (2,870) | (237) | [2] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 445 | 445 | ||||||||
Foreign currency translation adjustments | 42 | [3] | 42 | [2] | ||||||
Fixed price diesel swaps | [2] | 1 | ||||||||
Stock compensation expense, net (in shares) | [1] | 0 | ||||||||
Stock compensation expense, net | 31 | |||||||||
Exercise of common stock options | 10 | |||||||||
Shares repurchased and retired | (34) | |||||||||
Repurchase of common stock (in shares) | (3) | [1] | 3 | |||||||
Repurchase of common stock | $ (420) | |||||||||
Balance (in shares) at Jun. 30, 2019 | 77 | [1] | 36 | |||||||
Balance at Jun. 30, 2019 | 3,478 | $ 1 | 2,415 | 4,546 | $ (3,290) | (194) | [2] | |||
Balance (in shares) at Mar. 31, 2019 | 79 | [1] | 35 | |||||||
Balance at Mar. 31, 2019 | $ 1 | 2,394 | 4,276 | $ (3,080) | (216) | [2] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 270 | 270 | ||||||||
Foreign currency translation adjustments | 22 | [3] | 22 | [2] | ||||||
Stock compensation expense, net (in shares) | [1] | (1) | ||||||||
Stock compensation expense, net | 16 | |||||||||
Exercise of common stock options | 6 | |||||||||
Shares repurchased and retired | (1) | |||||||||
Repurchase of common stock (in shares) | (1) | [1] | 1 | |||||||
Repurchase of common stock | $ (210) | |||||||||
Balance (in shares) at Jun. 30, 2019 | 77 | [1] | 36 | |||||||
Balance at Jun. 30, 2019 | $ 3,478 | $ 1 | $ 2,415 | $ 4,546 | $ (3,290) | $ (194) | [2] | |||
[1] | Common stock outstanding decreased by less than 5 million net shares during the year ended December 31, 2018 . | |||||||||
[2] | The Accumulated Other Comprehensive Loss balance primarily reflects foreign currency translation adjustments. | |||||||||
[3] | There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive income (loss) during 2019 or 2018 . T here is no tax impact related to the foreign currency translation adjustments, as the earnings are considered permanently reinvested. We have historically considered the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested. We have not repatriated funds to the U.S. to satisfy domestic liquidity needs, nor do we anticipate the need to do so. If we determine that all or a portion of our foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. There were no material taxes associated with other comprehensive income (loss) during 2019 or 2018 . |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) shares in Millions | 12 Months Ended |
Dec. 31, 2018shares | |
Common Stock | |
Change in common stock outstanding (in shares, less than) | (5) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net income | $ 445 | $ 453 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,003 | 783 |
Amortization of deferred financing costs and original issue discounts | 8 | 6 |
Gain on sales of rental equipment | (148) | (139) |
Gain on sales of non-rental equipment | (3) | (3) |
Gain on insurance proceeds from damaged equipment | (12) | (14) |
Stock compensation expense, net | 31 | 43 |
Merger related costs | 1 | 3 |
Restructuring charge | 14 | 6 |
Loss on repurchase/redemption of debt securities and amendment of ABL facility | 32 | 0 |
Increase in deferred taxes | 49 | 93 |
Changes in operating assets and liabilities, net of amounts acquired: | ||
Decrease in accounts receivable | 39 | 29 |
Increase in inventory | (25) | (19) |
(Increase) decrease in prepaid expenses and other assets | (23) | 25 |
Increase in accounts payable | 211 | 451 |
Decrease in accrued expenses and other liabilities | (32) | (68) |
Net cash provided by operating activities | 1,590 | 1,649 |
Cash Flows From Investing Activities: | ||
Purchases of rental equipment | (1,129) | (1,226) |
Purchases of non-rental equipment | (97) | (80) |
Proceeds from sales of rental equipment | 389 | 338 |
Proceeds from sales of non-rental equipment | 15 | 8 |
Insurance proceeds from damaged equipment | 12 | 14 |
Purchases of other companies, net of cash acquired | (195) | (58) |
Purchases of investments | (1) | (1) |
Net cash used in investing activities | (1,006) | (1,005) |
Cash Flows From Financing Activities: | ||
Proceeds from debt | 4,590 | 4,330 |
Payments of debt | (4,679) | (4,806) |
Proceeds from the exercise of common stock options | 10 | 2 |
Common stock repurchased | (454) | (395) |
Payments of financing costs | (19) | (1) |
Net cash used in financing activities | (552) | (870) |
Effect of foreign exchange rates | 0 | (9) |
Net increase (decrease) in cash and cash equivalents | 32 | (235) |
Cash and cash equivalents at beginning of period | 43 | 352 |
Cash and cash equivalents at end of period | 75 | 117 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net | 73 | 39 |
Cash paid for interest | $ 301 | $ 213 |
Organization, Description of Bu
Organization, Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Description of Business and Basis of Presentation | Organization, Description of Business and Basis of Presentation United Rentals, Inc. (“Holdings,” “URI” or the “Company”) is principally a holding company and conducts its operations primarily through its wholly owned subsidiary, United Rentals (North America), Inc. (“URNA”), and subsidiaries of URNA. Holdings’ primary asset is its sole ownership of all issued and outstanding shares of common stock of URNA. URNA’s various credit agreements and debt instruments place restrictions on its ability to transfer funds to its shareholder. We rent equipment to a diverse customer base that includes construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities in the United States, Canada and Europe. In addition to renting equipment, we sell new and used rental equipment, as well as related contractor supplies, parts and service. We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with the accounting policies described in our annual report on Form 10-K for the year ended December 31, 2018 (the “ 2018 Form 10-K”) and the interim reporting requirements of Form 10-Q. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the 2018 Form 10-K. In our opinion, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of financial condition, operating results and cash flows for the interim periods presented have been made. Interim results of operations are not necessarily indicative of the results of the full year. New Accounting Pronouncements Measurement of Credit Losses on Financial Instruments. In June 2016, the Financial Accounting Standards Board ("FASB") issued guidance that will require companies to present assets held at amortized cost and available for sale debt securities net of the amount expected to be collected. The guidance requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectibility. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2019 and early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Different components of the guidance require modified retrospective or prospective adoption. This guidance does not apply to receivables arising from operating leases. As discussed in note 2 to the condensed consolidated financial statements, most of our equipment rental revenue is accounted for as lease revenue (such revenue represented 78 percent of our total revenues for the six months ended June 30, 2019 ). We expect to adopt this guidance when effective, and the impact on our financial statements, while limited to our non-operating lease receivables, is not currently estimable, as it will depend on market conditions and our forecast expectations upon, and following, adoption. Simplifying the Test for Goodwill Impairment . In January 2017, the FASB issued guidance intended to simplify the subsequent accounting for goodwill acquired in a business combination. Prior guidance required utilizing a two-step process to review goodwill for impairment. A second step was required if there was an indication that an impairment may exist, and the second step required calculating the potential impairment by comparing the implied fair value of the reporting unit's goodwill (as if purchase accounting were performed on the testing date) with the carrying amount of the goodwill. The new guidance eliminates the second step from the goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value (although the loss should not exceed the total amount of goodwill allocated to the reporting unit). The guidance requires prospective adoption and will be effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption of this guidance is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently assessing whether we will early adopt. The guidance is not expected to have a significant impact on our financial statements. Guidance Adopted in 2019 Leases . See note 8 to our condensed consolidated financial statements for a discussion of our lease accounting following our adoption of an updated FASB lease accounting standard in 2019. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Recognition Accounting Standards In May 2014, and in subsequent updates, the FASB issued guidance ("Topic 606") to clarify the principles for recognizing revenue. We adopted Topic 606 on January 1, 2018. Topic 606 includes the required steps to achieve the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued updated lease accounting guidance ("Topic 842"), as explained further in note 8 to the condensed consolidated financial statements. We adopted Topic 842 on January 1, 2019. Topic 842 is an update to Topic 840, which was the lease accounting standard in place through December 31, 2018. As reflected below, most of our revenue is accounted for under Topic 842 (Topic 840 for 2018). There were no significant changes to our revenue accounting upon adoption of Topic 842. We recognize revenue in accordance with two different accounting standards: 1) Topic 606 and 2) Topic 842. Under Topic 606, revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account under Topic 606. As reflected below, most of our revenue is accounted for under Topic 842. Our contracts with customers generally do not include multiple performance obligations. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services. Nature of goods and services In the following table, revenue is summarized by type and by the applicable accounting standard. Three Months Ended June 30, 2019 2018 Topic 842 Topic 606 Total Topic 840 Topic 606 Total Revenues: Owned equipment rentals $ 1,668 $ — $ 1,668 $ 1,406 $ — $ 1,406 Re-rent revenue 37 — 37 29 — 29 Ancillary and other rental revenues: Delivery and pick-up — 143 143 — 112 112 Other 87 25 112 64 20 84 Total ancillary and other rental revenues 87 168 255 64 132 196 Total equipment rentals 1,792 168 1,960 1,499 132 1,631 Sales of rental equipment — 197 197 — 157 157 Sales of new equipment — 60 60 — 44 44 Contractor supplies sales — 27 27 — 24 24 Service and other revenues — 46 46 — 35 35 Total revenues $ 1,792 $ 498 $ 2,290 $ 1,499 $ 392 $ 1,891 Six Months Ended June 30, 2019 2018 Topic 842 Topic 606 Total Topic 840 Topic 606 Total Revenues: Owned equipment rentals $ 3,198 $ — $ 3,198 $ 2,671 $ — $ 2,671 Re-rent revenue 72 — 72 54 — 54 Ancillary and other rental revenues: Delivery and pick-up — 262 262 — 204 204 Other 167 56 223 120 41 161 Total ancillary and other rental revenues 167 318 485 120 245 365 Total equipment rentals 3,437 318 3,755 2,845 245 3,090 Sales of rental equipment — 389 389 — 338 338 Sales of new equipment — 122 122 — 86 86 Contractor supplies sales — 51 51 — 42 42 Service and other revenues — 90 90 — 69 69 Total revenues $ 3,437 $ 970 $ 4,407 $ 2,845 $ 780 $ 3,625 Revenues by reportable segment and geographical market are presented in notes 4 and 11 of the condensed consolidated financial statements, respectively, using the revenue captions reflected in our condensed consolidated statements of operations. The majority of our revenue is recognized in our general rentals segment and in the U.S. (for the six months ended June 30, 2019 , 80 percent and 91 percent of total revenues, respectively). We believe that the disaggregation of our revenue from contracts to customers as reflected above, coupled with the further discussion below and the reportable segment and geographical market disclosures in notes 4 and 11 , depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Lease revenues (Topic 842) The accounting for the types of revenue that are accounted for under Topic 842 is discussed below. Owned equipment rentals represent our most significant revenue type (they accounted for 73 percent of total revenues for the six months ended June 30, 2019 ) and are governed by our standard rental contract. We account for such rentals as operating leases. The lease terms are included in our contracts, and the determination of whether our contracts contain leases generally does not require significant assumptions or judgments. Our lease revenues do not include material amounts of variable payments. Owned equipment rentals: Owned equipment rentals represent revenues from renting equipment that we own. We do not generally provide an option for the lessee to purchase the rented equipment at the end of the lease, and do not generate material revenue from sales of equipment under such options. We recognize revenues from renting equipment on a straight-line basis. Our rental contract periods are hourly, daily, weekly or monthly. By way of example, if a customer were to rent a piece of equipment and the daily, weekly and monthly rental rates for that particular piece were (in actual dollars) $100, $300 and $900, respectively, we would recognize revenue of $32.14 per day. The daily rate for recognition purposes is calculated by dividing the monthly rate of $900 by the monthly term of 28 days. This daily rate assumes that the equipment will be on rent for the full 28 days, as we are unsure of when the customer will return the equipment and therefore unsure of which rental contract period will apply. As part of this straight-line methodology, when the equipment is returned, we recognize as incremental revenue the excess, if any, between the amount the customer is contractually required to pay, which is based on the rental contract period applicable to the actual number of days the equipment was out on rent, over the cumulative amount of revenue recognized to date. In any given accounting period, we will have customers return equipment and be contractually required to pay us more than the cumulative amount of revenue recognized to date under the straight-line methodology. For instance, continuing the above example, if the customer rented the above piece of equipment on December 29 and returned it at the close of business on January 1, we would recognize incremental revenue on January 1 of $171.44 (in actual dollars, representing the difference between the amount the customer is contractually required to pay, or $300 at the weekly rate, and the cumulative amount recognized to date on a straight-line basis, or $128.56, which represents four days at $32.14 per day). We record amounts billed to customers in excess of recognizable revenue as deferred revenue on our balance sheet. We had deferred revenue (associated with both Topic 842/840 and Topic 606) of $58 and $56 as of June 30, 2019 and December 31, 2018 , respectively. As noted above, we are unsure of when the customer will return rented equipment. As such, we do not know how much the customer will owe us upon return of the equipment and cannot provide a maturity analysis of future lease payments. Our equipment is generally rented for short periods of time. Lessees do not provide residual value guarantees on rented equipment. We expect to derive significant future benefits from our equipment following the end of the rental term. Our rentals are generally short-term in nature, and our equipment is typically rented for the majority of the time that we own it. We additionally recognize revenue from sales of rental equipment when we dispose of the equipment. Re-rent revenue: Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. “Other” equipment rental revenue is primarily comprised of 1) Rental Protection Plan (or "RPP") revenue associated with the damage waiver customers can purchase when they rent our equipment to protect against potential loss or damage, 2) environmental charges associated with the rental of equipment, and 3) charges for rented equipment that is damaged by our customers. Revenues from contracts with customers (Topic 606) The accounting for the types of revenue that are accounted for under Topic 606 is discussed below. Substantially all of our revenues under Topic 606 are recognized at a point-in-time rather than over time. Delivery and pick-up: Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. “Other” equipment rental revenue is primarily comprised of revenues associated with the consumption of fuel by our customers which are recognized when the equipment is returned by the customer (and consumption, if any, can be measured). Sales of rental equipment, new equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is reasonably assured. Service and other revenues primarily represent revenues earned from providing repair and maintenance services on our customers’ fleet (including parts sales). Service revenue is recognized as the services are performed. Receivables and contract assets and liabilities As reflected above, most of our equipment rental revenue is accounted for under Topic 842 (such revenue represented 78 percent of our total revenues for the six months ended June 30, 2019 ). The customers that are responsible for the remaining revenue that is accounted for under Topic 606 are generally the same customers that rent our equipment. We manage credit risk associated with our accounts receivables at the customer level. Because the same customers generate the revenues that are accounted for under both Topic 606 and Topic 842, the discussions below on credit risk and our allowances for doubtful accounts address receivables arising from revenues from both Topic 606 and Topic 842 (Topic 840 for 2018). Concentration of credit risk with respect to our receivables is limited because a large number of geographically diverse customers makes up our customer base. Our largest customer accounted for less than one percent of total revenues for the six months ended June 30, 2019 , and for each of the last three full years. Our customer with the largest receivable balance represented approximately one percent of total receivables at June 30, 2019 and December 31, 2018 . We manage credit risk through credit approvals, credit limits and other monitoring procedures. Our allowances for doubtful accounts reflect our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience. Our estimate could require change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowances. Trade receivables that have contractual maturities of one year or less are written-off when they are determined to be uncollectible based on the criteria necessary to qualify as a deduction for federal tax purposes. Write-offs of such receivables require management approval based on specified dollar thresholds. During the six months ended June 30, 2019 and 2018 , we recognized total additions, excluding acquisitions, to our allowances for doubtful accounts of $27 and $12 , respectively, primarily 1) as a reduction to equipment rental revenue or 2) as bad debt expense within selling, general and administrative expenses in our condensed consolidated statements of income. We do no t have material contract assets, or impairment losses associated therewith, or material contract liabilities, associated with contracts with customers. Our contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. We did no t recognize material revenue during the three or six months ended June 30, 2019 or 2018 that was included in the contract liability balance as of the beginning of such periods. Performance obligations Most of our Topic 606 revenue is recognized at a point-in-time, rather than over time. Accordingly, in any particular period, we do not generally recognize a significant amount of revenue from performance obligations satisfied (or partially satisfied) in previous periods, and the amounts of such revenue recognized during the three and six months ended June 30, 2019 and 2018 were no t material. We also do not expect to recognize material revenue in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2019 . Payment terms Our Topic 606 revenues do not include material amounts of variable consideration. Our payment terms vary by the type and location of our customer and the products or services offered. The time between invoicing and when payment is due is not significant. Our contracts do not generally include a significant financing component. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. See above for a discussion of how we manage credit risk. Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities. Contract costs We do not recognize any assets associated with the incremental costs of obtaining a contract with a customer (for example, a sales commission) that we expect to recover. Most of our revenue is recognized at a point-in-time or over a period of one year or less, and we use the practical expedient that allows us to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. Contract estimates and judgments Our revenues accounted for under Topic 606 generally do not require significant estimates or judgments, primarily for the following reasons: • The transaction price is generally fixed and stated on our contracts; • As noted above, our contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation; • Our revenues do not include material amounts of variable consideration, or result in significant obligations associated with returns, refunds or warranties; and • Most of our revenue is recognized as of a point-in-time and the timing of the satisfaction of the applicable performance obligations is readily determinable. As noted above, our Topic 606 revenue is generally recognized at the time of delivery to, or pick-up by, the customer. We monitor and review our estimated standalone selling prices on a regular basis. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions BakerCorp Acquisition In July 2018, we completed the acquisition of BakerCorp. BakerCorp was a leading multinational provider of tank, pump, filtration and trench shoring rental solutions for a broad range of industrial and construction applications. BakerCorp had approximately 950 employees, and its operations were primarily concentrated in the United States and Canada, where it had 46 locations. BakerCorp also had 11 locations in France, Germany, the United Kingdom and the Netherlands. BakerCorp had annual revenues of approximately $295 . The acquisition: • Augmented our bundled solutions for fluid storage, transfer and treatment; • Expanded our strategic account base; and • Provided a significant opportunity to increase revenue and enhance customer service by cross-selling to our broader customer base. The aggregate consideration paid was approximately $720 . The acquisition and related fees and expenses were funded through drawings on our ABL facility. The following table summarizes the fair values of the assets acquired and liabilities assumed. Accounts receivable, net of allowance for doubtful accounts (1) $ 74 Inventory 5 Rental equipment 268 Property and equipment 25 Intangibles (2) 171 Other assets 4 Total identifiable assets acquired 547 Current liabilities (61 ) Deferred taxes (13 ) Total liabilities assumed (74 ) Net identifiable assets acquired 473 Goodwill (3) 247 Net assets acquired $ 720 (1) The fair value of accounts receivables acquired was $74 , and the gross contractual amount was $81 . We estimated that $7 would be uncollectible. (2) The following table reflects the fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair value Life (years) Customer relationships $ 166 8 Trade names and associated trademarks 5 5 Total $ 171 (3) All of the goodwill was assigned to our trench, power and fluid solutions segment. The level of goodwill that resulted from the acquisition is primarily reflective of BakerCorp's going-concern value, the value of BakerCorp's assembled workforce, new customer relationships expected to arise from the acquisition, and operational synergies that we expect to achieve that are not associated with the identifiable assets. $6 of goodwill is expected to be deductible for income tax purposes. The three and six months ended June 30, 2019 include BakerCorp acquisition-related costs which are included in “Merger related costs” in our condensed consolidated statements of income. Since the acquisition date, significant amounts of fleet have been moved between URI locations and the acquired BakerCorp locations, and it is not practicable to reasonably estimate the amounts of revenue and earnings of BakerCorp since the acquisition date. The impact of the BakerCorp acquisition on our equipment rentals revenue is primarily reflected in the increases in average OEC of 23.2 percent and 23.4 percent for the three and six months ended June 30, 2019 , respectively. Such increases include the impact of the acquisition of BlueLine discussed below. BlueLine Acquisition In October 2018, we completed the acquisition of BlueLine. BlueLine was one of the ten largest equipment rental companies in North America and served customers in the construction and industrial sectors with a focus on mid-sized and local accounts. BlueLine had 114 locations and over 1,700 employees based in 25 U.S. states, Canada and Puerto Rico. BlueLine had annual revenues of approximately $786 . The acquisition: • Expanded our equipment rental capacity in many of the largest metropolitan areas in North America, including both U.S. coasts, the Gulf South and Ontario; • Provided a well-diversified customer base with a balanced mix of commercial construction and industrial accounts; • Added more mid-sized and local accounts to our customer base; and • Provided a significant opportunity to increase revenue and enhance customer service by cross-selling to our broader customer base. The aggregate consideration paid was approximately $2.072 billion . The acquisition and related fees and expenses were funded through borrowings under a new $1 billion senior secured term loan credit facility (the “term loan facility”) and the issuance of $1.1 billion principal amount of 6 1 / 2 percent Senior Notes due 2026. The following table summarizes the fair values of the assets acquired and liabilities assumed. The purchase price allocations for these assets and liabilities are based on preliminary valuations and are subject to change as we obtain additional information during the acquisition measurement period. Accounts receivable, net of allowance for doubtful accounts (1) $ 117 Inventory 7 Rental equipment 1,078 Property and equipment 71 Intangibles (customer relationships) (2) 230 Other assets 42 Total identifiable assets acquired 1,545 Short-term debt and current maturities of long-term debt (3) (12 ) Current liabilities (130 ) Deferred taxes (7 ) Long-term debt (3) (25 ) Other long-term liabilities (4 ) Total liabilities assumed (178 ) Net identifiable assets acquired 1,367 Goodwill (4) 705 Net assets acquired $ 2,072 (1) The fair value of accounts receivables acquired was $117 , and the gross contractual amount was $125 . We estimated that $8 would be uncollectible. (2) The customer relationships are being amortized over a 5 year life. (3) The acquired debt reflects finance lease obligations. (4) All of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the acquisition is primarily reflective of BlueLine's going-concern value, the value of BlueLine's assembled workforce, new customer relationships expected to arise from the acquisition, and operational synergies that we expect to achieve that are not associated with the identifiable assets. $25 of goodwill is expected to be deductible for income tax purposes. The three and six months ended June 30, 2019 include BlueLine acquisition-related costs which are included in “Merger related costs” in our condensed consolidated statements of income. In addition to the acquisition-related costs reflected in our consolidated statements of income, the debt issuance costs associated with the issuance of debt to fund the acquisition are reflected, net of amortization subsequent to the acquisition date, in long-term debt in our consolidated balance sheets. Since the acquisition date, significant amounts of fleet have been moved between URI locations and the acquired BlueLine locations, and it is not practicable to reasonably estimate the amounts of revenue and earnings of BlueLine since the acquisition date. The impact of the BlueLine acquisition on our equipment rentals revenue is primarily reflected in the increases in average OEC of 23.2 percent and 23.4 percent for the three and six months ended June 30, 2019 , respectively. Such increases include the impact of the acquisition of BakerCorp discussed above. Pro forma financial information The pro forma information below gives effect to the BakerCorp and BlueLine acquisitions as if they had been completed on January 1, 2018 (“the pro forma acquisition date”). The pro forma information is not necessarily indicative of our results of operations had the acquisitions been completed on the above date, nor is it necessarily indicative of our future results. The pro forma information does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisitions, and also does not reflect additional revenue opportunities following the acquisitions. The pro forma information includes adjustments to record the assets and liabilities of BakerCorp and BlueLine at their respective fair values based on available information and to give effect to the financing for the acquisitions and related transactions. The pro forma adjustments reflected in the table below are subject to change as additional analysis is performed. The acquisition measurement period for BakerCorp has ended and the values assigned to the BakerCorp assets acquired and liabilities assumed are final. The opening balance sheet values assigned to the BlueLine assets acquired and liabilities assumed are based on preliminary valuations and are subject to change as we obtain additional information during the acquisition measurement period. Increases or decreases in the estimated fair values of the net assets acquired may impact our statements of income in future periods. The tables below present unaudited pro forma consolidated income statement information as if BakerCorp and BlueLine had been included in our consolidated results for the entire period reflected. Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 United Rentals BlueLine BakerCorp Total United Rentals BlueLine BakerCorp Total Historic/pro forma revenues $ 1,891 $ 194 $ 82 $ 2,167 $ 3,625 $ 382 $ 156 $ 4,163 Historic/combined pretax income (loss) 359 (8 ) (8 ) 343 591 (30 ) (21 ) 540 Pro forma adjustments to pretax income (loss): Impact of fair value mark-ups/useful life changes on depreciation (1) (1 ) (3 ) (4 ) (3 ) (6 ) (9 ) Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales (2) (3 ) — (3 ) (8 ) — (8 ) Intangible asset amortization (3) (19 ) (10 ) (29 ) (38 ) (20 ) (58 ) Interest expense (4) (27 ) (6 ) (33 ) (54 ) (12 ) (66 ) Elimination of historic interest (5) 32 11 43 63 21 84 Elimination of merger related costs (6) 2 1 3 2 1 3 Restructuring charges (7) (10 ) (3 ) (13 ) (23 ) (9 ) (32 ) Pro forma pretax income $ 307 $ 454 (1) Depreciation of rental equipment and non-rental depreciation were adjusted for the fair value mark-ups, and the changes in useful lives and salvage values, of the equipment acquired in the BakerCorp and BlueLine acquisitions. (2) Cost of rental equipment sales was adjusted for the fair value mark-ups of rental equipment acquired in the BlueLine acquisition. BakerCorp did not historically recognize a material amount of rental equipment sales, and accordingly no adjustment was required for BakerCorp. (3) The intangible assets acquired in the BakerCorp and BlueLine acquisitions were amortized. (4) As discussed above, we issued debt to fund the BakerCorp and BlueLine acquisitions. Interest expense was adjusted to reflect these changes in our debt portfolio. (5) Historic interest on debt that is not part of the combined entity was eliminated. (6) Merger related costs primarily comprised of financial and legal advisory fees associated with the BakerCorp and BlueLine acquisitions were eliminated as they were assumed to have been recognized prior to the pro forma acquisition date. The adjustments for BlueLine for the three and six months ended June 30, 2018 include $2 of merger related costs recognized by BlueLine prior to the acquisition. (7) We expect to recognize restructuring charges primarily comprised of severance costs and branch closure charges associated with the acquisitions over a period of approximately one year following the acquisition dates, which, for the pro forma presentation, was January 1, 2018. The adjustments above reflect the timing of the actual restructuring charges following the acquisitions (the pro forma restructuring charges above for the three and six months ended June 30, 2018 reflect the actual restructuring charges recognized during the three and six months following the acquisitions). We expect to incur additional restructuring charges for BakerCorp and BlueLine, however the remaining costs are not currently estimable, as we are still identifying the actions that will be undertaken. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments are i) general rentals and ii) trench, power and fluid solutions. The general rentals segment includes the rental of i) general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, ii) aerial work platforms, such as boom lifts and scissor lifts and iii) general tools and light equipment, such as pressure washers, water pumps and power tools. The general rentals segment reflects the aggregation of 11 geographic regions—Carolinas, Gulf South, Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Mid Central, Midwest, Northeast, Pacific West, South, Southeast and Western Canada—and operates throughout the United States and Canada. The trench, power and fluid solutions segment includes the rental of specialty construction products such as i) trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, ii) power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment and iii) fluid solutions equipment primarily used for fluid containment, transfer and treatment. The trench, power and fluid solutions segment is comprised of the following regions, each of which primarily rents the corresponding equipment type described above: i) the Trench Safety region, ii) the Power and HVAC region, iii) the Fluid Solutions region and iv) the Fluid Solutions Europe region. The trench, power and fluid solutions segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment operates throughout the United States and in Canada and Europe. These segments align our external segment reporting with how management evaluates and allocates resources. We evaluate segment performance based on segment equipment rentals gross profit. The following tables set forth financial information by segment. General rentals Trench, power and fluid solutions Total Three Months Ended June 30, 2019 Equipment rentals $ 1,527 $ 433 $ 1,960 Sales of rental equipment 180 17 197 Sales of new equipment 52 8 60 Contractor supplies sales 19 8 27 Service and other revenues 40 6 46 Total revenue 1,818 472 2,290 Depreciation and amortization expense 416 88 504 Equipment rentals gross profit 593 199 792 Three Months Ended June 30, 2018 Equipment rentals $ 1,332 $ 299 $ 1,631 Sales of rental equipment 145 12 157 Sales of new equipment 38 6 44 Contractor supplies sales 19 5 24 Service and other revenues 32 3 35 Total revenue 1,566 325 1,891 Depreciation and amortization expense 334 56 390 Equipment rentals gross profit 543 145 688 Six Months Ended June 30, 2019 Equipment rentals $ 2,950 $ 805 $ 3,755 Sales of rental equipment 358 31 389 Sales of new equipment 107 15 122 Contractor supplies sales 36 15 51 Service and other revenues 77 13 90 Total revenue 3,528 879 4,407 Depreciation and amortization expense 828 175 1,003 Equipment rentals gross profit 1,094 356 1,450 Capital expenditures 1,015 211 1,226 Six Months Ended June 30, 2018 Equipment rentals $ 2,533 $ 557 $ 3,090 Sales of rental equipment 316 22 338 Sales of new equipment 75 11 86 Contractor supplies sales 33 9 42 Service and other revenues 62 7 69 Total revenue 3,019 606 3,625 Depreciation and amortization expense 671 112 783 Equipment rentals gross profit 969 264 1,233 Capital expenditures 1,153 153 1,306 June 30, December 31, Total reportable segment assets General rentals $ 16,124 $ 15,597 Trench, power and fluid solutions 2,923 2,536 Total assets $ 19,047 $ 18,133 Equipment rentals gross profit is the primary measure management reviews to make operating decisions and assess segment performance. The following is a reconciliation of equipment rentals gross profit to income before provision for income taxes: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Total equipment rentals gross profit $ 792 $ 688 $ 1,450 $ 1,233 Gross profit from other lines of business 119 94 222 195 Selling, general and administrative expenses (271 ) (239 ) (551 ) (471 ) Merger related costs — (2 ) (1 ) (3 ) Restructuring charge (6 ) (4 ) (14 ) (6 ) Non-rental depreciation and amortization (105 ) (67 ) (209 ) (138 ) Interest expense, net (180 ) (112 ) (331 ) (221 ) Other income, net 2 1 5 2 Income before provision for income taxes $ 351 $ 359 $ 571 $ 591 |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Restructuring charges primarily include severance costs associated with headcount reductions, as well as branch closure charges. We incur severance costs and branch closure charges in the ordinary course of our business. We only include such costs that are part of a restructuring program as restructuring charges. Since the first such restructuring program was initiated in 2008, we have completed four restructuring programs and have incurred total restructuring charges of $329 . Closed Restructuring Programs Our closed restructuring programs were initiated either in recognition of a challenging economic environment or following the completion of certain significant acquisitions. As of June 30, 2019 , the total liability associated with the closed restructuring programs was $13 . BakerCorp/BlueLine Restructuring Program In the third quarter of 2018, we initiated a restructuring program following the closing of the BakerCorp acquisition discussed in note 3 to the condensed consolidated financial statements. The restructuring program also includes actions undertaken associated with the BlueLine acquisition discussed in note 3 to the condensed consolidated financial statements. We expect to complete the restructuring program in 2019. The total costs expected to be incurred in connection with the program are not currently estimable, as we are still identifying the actions that will be undertaken. The table below provides certain information concerning restructuring activity under the BakerCorp/BlueLine restructuring program during the six months ended June 30, 2019 : Reserve Balance at Charged to Payments Reserve Balance at December 31, 2018 June 30, 2019 Branch closure charges $ 3 $ 13 $ (2 ) $ 14 Severance and other 9 5 (11 ) 3 Total $ 12 $ 18 $ (13 ) $ 17 _________________ (1) Reflected in our condensed consolidated statements of income as “Restructuring charge” (such charge also includes activity under our closed restructuring programs). These charges are not allocated to our reportable segments. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of June 30, 2019 and December 31, 2018 , the amounts of our assets and liabilities that were accounted for at fair value were immaterial. Fair value measurements are categorized in one of the following three levels based on the lowest level input that is significant to the fair value measurement in its entirety: Level 1- Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2- Observable inputs other than quoted prices in active markets for identical assets or liabilities include: a) quoted prices for similar assets or liabilities in active markets; b) quoted prices for identical or similar assets or liabilities in inactive markets; c) inputs other than quoted prices that are observable for the asset or liability; d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3- Inputs to the valuation methodology are unobservable (i.e., supported by little or no market activity) and significant to the fair value measure. Fair Value of Financial Instruments The carrying amounts reported in our condensed consolidated balance sheets for accounts receivable, accounts payable and accrued expenses and other liabilities approximate fair value due to the immediate to short-term maturity of these financial instruments. The fair values of our ABL, accounts receivable securitization and term loan facilities and finance/capital leases (the classification of such leases changed upon adoption of a new lease accounting standard, as explained further in note 8 to the condensed consolidated financial statements) approximated their book values as of June 30, 2019 and December 31, 2018 . The estimated fair values of our financial instruments, all of which are categorized in Level 1 of the fair value hierarchy, as of June 30, 2019 and December 31, 2018 have been calculated based upon available market information, and were as follows: June 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Senior notes $ 8,005 $ 8,396 $ 8,102 $ 7,632 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Adoption of Accounting Standards Codification (“ASC”) Topic 842, “Leases” In March 2016, the FASB issued guidance ("Topic 842") to increase transparency and comparability among organizations by requiring (1) recognition of lease assets and lease liabilities on the balance sheet and (2) disclosure of key information about leasing arrangements. Some changes to the lessor accounting guidance were made to align both of the following: (1) the lessor accounting guidance with certain changes made to the lessee accounting guidance and (2) key aspects of the lessor accounting model with revenue recognition guidance. We adopted Topic 842 at the required adoption date of January 1, 2019, using the transition method that allowed us to initially apply Topic 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We used the package of practical expedients permitted under the transition guidance that allowed us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We additionally used, for our real estate operating leases, the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. We did not recognize a material adjustment to the opening balance of retained earnings upon adoption. Because of the transition method we used to adopt Topic 842, Topic 842 was not applied to periods prior to adoption and the adoption of Topic 842 had no impact on our previously reported results. As discussed in note 2 to the condensed consolidated financial statements, most of our equipment rental revenues, which accounted for 85 percent of total revenues for the six months ended June 30, 2019 , were accounted for under the previous lease accounting standard through December 31, 2018 and are accounted for under Topic 842 following adoption. There were no significant changes to our revenue accounting upon adoption of Topic 842. See note 2 to the condensed consolidated financial statements for a discussion of our revenue accounting (such discussion includes lessor disclosures required under Topic 842). The adoption of Topic 842 had a material impact on our condensed consolidated balance sheet due to the recognition of right-of-use (“ROU”) assets and lease liabilities, as discussed further below. The adoption of Topic 842 did not have a material impact on our condensed consolidated income statement (as noted above, although a significant portion of our revenue is accounted for under Topic 842 following adoption, there were no significant changes to our revenue accounting upon adoption) or our condensed consolidated cash flow statement. Lease Accounting We determine if an arrangement is a lease at inception. Our material lease contracts are generally for real estate or vehicles, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. We lease real estate and equipment under operating leases. We lease a significant portion of our branch locations, and also lease other premises used for purposes such as district and regional offices and service centers. Our finance lease obligations consist primarily of rental equipment (primarily vehicles) and building leases. Operating leases result in the recognition of ROU assets and lease liabilities on the balance sheet. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Our lease terms may include options, at our sole discretion, to extend or terminate the lease that we are reasonably certain to exercise. The amount of payments associated with such options reflected in the “Maturity of lease liabilities” table below is not material. Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense on such leases is recognized on a straight-line basis over the lease term. The primary leases we enter into with initial terms of 12 months or less are for equipment that we rent from vendors and then rent to our customers. We generate sublease revenue from such leases that we refer to as "re-rent revenue" as discussed in note 2 to the condensed consolidated financial statements. Apart from the re-rent revenue discussed in note 2 , we do not generate material sublease income. We have lease agreements with lease and non-lease components, and, for our real estate operating leases, we account for the lease and non-lease components as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The tables below present financial information associated with our leases. This information is only presented as of, and for the three and six months ended, June 30, 2019 because, as noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption. Classification June 30, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 619 Finance lease assets Rental equipment 267 Less accumulated depreciation (91 ) Rental equipment, net 176 Property and equipment, net: Non-rental vehicles 8 Buildings 16 Less accumulated depreciation and amortization (19 ) Property and equipment, net 5 Total leased assets 800 Liabilities Current Operating Accrued expenses and other liabilities 170 Finance Short-term debt and current maturities of long-term debt 40 Long-term Operating Operating lease liabilities 497 Finance Long-term debt 75 Total lease liabilities $ 782 Lease cost Classification Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost (1) Cost of equipment rentals, excluding depreciation (1) $ 86 $ 175 Selling, general and administrative expenses 2 5 Restructuring charge 7 13 Finance lease cost Amortization of leased assets Depreciation of rental equipment 7 14 Non-rental depreciation and amortization — 1 Interest on lease liabilities Interest expense, net 1 3 Sublease income (2) (37 ) (72 ) Net lease cost $ 66 $ 139 _________________ (1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the three and six months ended, June 30, 2019 includes $ 29 and $ 63 , respectively, of short-term lease costs associated with equipment that we rent from vendors and then rent to our customers, as discussed further above. Apart from these costs, short-term lease costs are immaterial. (2) Primarily reflects re-rent revenue as discussed further above. Maturity of lease liabilities (as of June 30, 2019) Operating leases (1) Finance leases (2) 2019 $ 116 $ 22 2020 188 38 2021 156 38 2022 117 14 2023 82 3 Thereafter 98 6 Total 757 121 Less amount representing interest (90 ) (6 ) Present value of lease liabilities $ 667 $ 115 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of June 30, 2019 . The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. (2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. Lease term and discount rate June 30, 2019 Weighted-average remaining lease term (years) Operating leases 4.5 Finance leases 3.5 Weighted-average discount rate Operating leases 4.9 % Finance leases 3.9 % Other information Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 102 Operating cash flows from finance leases 3 Financing cash flows from finance leases 22 Leased assets obtained in exchange for new operating lease liabilities 104 Leased assets obtained in exchange for new finance lease liabilities $ 17 |
Leases | Leases Adoption of Accounting Standards Codification (“ASC”) Topic 842, “Leases” In March 2016, the FASB issued guidance ("Topic 842") to increase transparency and comparability among organizations by requiring (1) recognition of lease assets and lease liabilities on the balance sheet and (2) disclosure of key information about leasing arrangements. Some changes to the lessor accounting guidance were made to align both of the following: (1) the lessor accounting guidance with certain changes made to the lessee accounting guidance and (2) key aspects of the lessor accounting model with revenue recognition guidance. We adopted Topic 842 at the required adoption date of January 1, 2019, using the transition method that allowed us to initially apply Topic 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We used the package of practical expedients permitted under the transition guidance that allowed us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We additionally used, for our real estate operating leases, the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. We did not recognize a material adjustment to the opening balance of retained earnings upon adoption. Because of the transition method we used to adopt Topic 842, Topic 842 was not applied to periods prior to adoption and the adoption of Topic 842 had no impact on our previously reported results. As discussed in note 2 to the condensed consolidated financial statements, most of our equipment rental revenues, which accounted for 85 percent of total revenues for the six months ended June 30, 2019 , were accounted for under the previous lease accounting standard through December 31, 2018 and are accounted for under Topic 842 following adoption. There were no significant changes to our revenue accounting upon adoption of Topic 842. See note 2 to the condensed consolidated financial statements for a discussion of our revenue accounting (such discussion includes lessor disclosures required under Topic 842). The adoption of Topic 842 had a material impact on our condensed consolidated balance sheet due to the recognition of right-of-use (“ROU”) assets and lease liabilities, as discussed further below. The adoption of Topic 842 did not have a material impact on our condensed consolidated income statement (as noted above, although a significant portion of our revenue is accounted for under Topic 842 following adoption, there were no significant changes to our revenue accounting upon adoption) or our condensed consolidated cash flow statement. Lease Accounting We determine if an arrangement is a lease at inception. Our material lease contracts are generally for real estate or vehicles, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. We lease real estate and equipment under operating leases. We lease a significant portion of our branch locations, and also lease other premises used for purposes such as district and regional offices and service centers. Our finance lease obligations consist primarily of rental equipment (primarily vehicles) and building leases. Operating leases result in the recognition of ROU assets and lease liabilities on the balance sheet. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Our lease terms may include options, at our sole discretion, to extend or terminate the lease that we are reasonably certain to exercise. The amount of payments associated with such options reflected in the “Maturity of lease liabilities” table below is not material. Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense on such leases is recognized on a straight-line basis over the lease term. The primary leases we enter into with initial terms of 12 months or less are for equipment that we rent from vendors and then rent to our customers. We generate sublease revenue from such leases that we refer to as "re-rent revenue" as discussed in note 2 to the condensed consolidated financial statements. Apart from the re-rent revenue discussed in note 2 , we do not generate material sublease income. We have lease agreements with lease and non-lease components, and, for our real estate operating leases, we account for the lease and non-lease components as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The tables below present financial information associated with our leases. This information is only presented as of, and for the three and six months ended, June 30, 2019 because, as noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption. Classification June 30, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 619 Finance lease assets Rental equipment 267 Less accumulated depreciation (91 ) Rental equipment, net 176 Property and equipment, net: Non-rental vehicles 8 Buildings 16 Less accumulated depreciation and amortization (19 ) Property and equipment, net 5 Total leased assets 800 Liabilities Current Operating Accrued expenses and other liabilities 170 Finance Short-term debt and current maturities of long-term debt 40 Long-term Operating Operating lease liabilities 497 Finance Long-term debt 75 Total lease liabilities $ 782 Lease cost Classification Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost (1) Cost of equipment rentals, excluding depreciation (1) $ 86 $ 175 Selling, general and administrative expenses 2 5 Restructuring charge 7 13 Finance lease cost Amortization of leased assets Depreciation of rental equipment 7 14 Non-rental depreciation and amortization — 1 Interest on lease liabilities Interest expense, net 1 3 Sublease income (2) (37 ) (72 ) Net lease cost $ 66 $ 139 _________________ (1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the three and six months ended, June 30, 2019 includes $ 29 and $ 63 , respectively, of short-term lease costs associated with equipment that we rent from vendors and then rent to our customers, as discussed further above. Apart from these costs, short-term lease costs are immaterial. (2) Primarily reflects re-rent revenue as discussed further above. Maturity of lease liabilities (as of June 30, 2019) Operating leases (1) Finance leases (2) 2019 $ 116 $ 22 2020 188 38 2021 156 38 2022 117 14 2023 82 3 Thereafter 98 6 Total 757 121 Less amount representing interest (90 ) (6 ) Present value of lease liabilities $ 667 $ 115 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of June 30, 2019 . The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. (2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. Lease term and discount rate June 30, 2019 Weighted-average remaining lease term (years) Operating leases 4.5 Finance leases 3.5 Weighted-average discount rate Operating leases 4.9 % Finance leases 3.9 % Other information Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 102 Operating cash flows from finance leases 3 Financing cash flows from finance leases 22 Leased assets obtained in exchange for new operating lease liabilities 104 Leased assets obtained in exchange for new finance lease liabilities $ 17 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt, net of unamortized original issue discounts or premiums, and unamortized debt issuance costs, consists of the following: June 30, 2019 December 31, 2018 Accounts Receivable Securitization Facility expiring 2020 (1) (2) $ 945 $ 850 $3.75 billion ABL Facility expiring 2024 (1) (3) 1,646 1,685 Term loan facility expiring 2025 (1) 984 988 4 5 / 8 percent Senior Secured Notes due 2023 994 994 5 3 / 4 percent Senior Notes due 2024 (4) — 842 5 1 / 2 percent Senior Notes due 2025 794 794 4 5 / 8 percent Senior Notes due 2025 742 741 5 7 / 8 percent Senior Notes due 2026 999 999 6 1 / 2 percent Senior Notes due 2026 1,088 1,087 5 1 / 2 percent Senior Notes due 2027 992 991 4 7 / 8 percent Senior Notes due 2028 (5) 1,651 1,650 4 7 / 8 percent Senior Notes due 2028 (5) 4 4 5 1 / 4 percent Senior Notes due 2030 (6) 741 — Finance leases (7) 115 — Capital leases (7) — 122 Total debt 11,695 11,747 Less short-term portion (8) (995 ) (903 ) Total long-term debt $ 10,700 $ 10,844 ___________________ (1) The table below presents financial information associated with our variable rate indebtedness as of and for the six months ended June 30, 2019 . We have borrowed the full available amount under the term loan facility. The principal obligation under the term loan facility is required to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent per annum, with the balance due at the maturity of the facility. The average amount of debt outstanding under the term loan facility decreases slightly each quarter due to the requirement to repay a portion of the principal obligation. ABL facility Accounts receivable securitization facility Term loan facility Borrowing capacity, net of letters of credit $ 2,046 $ 30 $ — Letters of credit 45 Interest rate at June 30, 2019 3.9 % 3.2 % 4.2 % Average month-end debt outstanding 1,558 898 995 Weighted-average interest rate on average debt outstanding 4.0 % 3.3 % 4.2 % Maximum month-end debt outstanding 1,691 958 998 (2) In June 2019, the accounts receivable securitization facility was amended, primarily to extend the maturity date which may be further extended on a 364-day basis by mutual agreement with the purchasers under the facility. The facility expires on June 26, 2020. Borrowings under the accounts receivable securitization facility are permitted only to the extent that the face amount of the receivables in the collateral pool, net of applicable reserves and other deductions, exceeds the outstanding loans. As of June 30, 2019 , there were $1.001 billion of receivables, net of applicable reserves and other deductions, in the collateral pool. (3) In February 2019, the ABL facility was amended, primarily to increase the facility size to $3.75 billion , extend the maturity date to February 2024 and make a portion of the facility available for borrowing in British Pounds and Euros by certain subsidiaries of URNA in Europe. (4) In May 2019, URNA redeemed all of its 5 3 / 4 percent Senior Notes. Upon redemption, we recognized a loss of $32 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the redeemed notes. (5) URNA separately issued 4 7 / 8 percent Senior Notes in August 2017 and in September 2017. Following the issuances, URNA consummated an exchange offer pursuant to which most of the 4 7 / 8 percent Senior Notes issued in September 2017 were exchanged for additional notes fungible with the 4 7 / 8 percent Senior Notes issued in August 2017. (6) In May 2019, URNA issued $750 aggregate principal amount of 5 1 / 4 percent Senior Notes (the “5 1 / 4 percent Notes”) which are due January 15, 2030. The net proceeds from the issuance were approximately $741 (after deducting offering expenses). The 5 1 / 4 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 5 1 / 4 percent Notes may be redeemed on or after January 15, 2025, at specified redemption prices that range from 102.625 percent in 2025, to 100 percent in 2028 and thereafter, in each case, plus accrued and unpaid interest, if any. In addition, at any time on or prior to January 15, 2023, up to 40 percent of the aggregate principal amount of the 5 1 / 4 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 105.250 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 5 1 / 4 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) mergers and consolidations; (iii) sales, transfers and other dispositions of assets; (iv) dividends and other distributions, stock repurchases and redemptions and other restricted payments; and (v) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the covenant relating to dividends and other distributions, stock repurchases and redemptions and other restricted payments and the requirements relating to additional subsidiary guarantors will not apply to URNA and its restricted subsidiaries during any period when the 5 1 / 4 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 5 1 / 4 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. (7) As discussed in note 8 to the condensed consolidated financial statements, we adopted an updated lease accounting standard on January 1, 2019. Upon adoption of the new standard, the leases that were previously classified as capital leases through December 31, 2018 were classified as finance leases. There were no significant changes to the accounting upon this change in classification. (8) As of June 30, 2019 , our short-term debt primarily reflects $ 945 of borrowings under our accounts receivable securitization facility. Loan Covenants and Compliance As of June 30, 2019 , we were in compliance with the covenants and other provisions of the ABL, accounts receivable securitization and term loan facilities and the senior notes. Any failure to be in compliance with any material provision or covenant of these agreements could have a material adverse effect on our liquidity and operations. The only financial maintenance covenant that currently exists under the ABL facility is the fixed charge coverage ratio. Subject to certain limited exceptions specified in the ABL facility, the fixed charge coverage ratio covenant under the ABL facility will only apply in the future if specified availability under the ABL facility falls below 10 percent of the maximum revolver amount under the ABL facility. When certain conditions are met, cash and cash equivalents and borrowing base collateral in excess of the ABL facility size may be included when calculating specified availability under the ABL facility. As of June 30, 2019 , specified availability under the ABL facility exceeded the required threshold and, as a result, this financial maintenance covenant was inapplicable. Under our accounts receivable securitization facility, we are required, among other things, to maintain certain financial tests relating to: (i) the default ratio, (ii) the delinquency ratio, (iii) the dilution ratio and (iv) days sales outstanding. The accounts receivable securitization facility also requires us to comply with the fixed charge coverage ratio under the ABL facility, to the extent the ratio is applicable under the ABL facility. |
Legal and Regulatory Matters
Legal and Regulatory Matters | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal and Regulatory Matters | Legal and Regulatory Matters We are subject to a number of claims and proceedings that generally arise in the ordinary course of our business. These matters include, but are not limited to, general liability claims (including personal injury, property and auto claims), indemnification and guarantee obligations, employee injuries and employment-related claims, self-insurance obligations, contract and real estate matters, and other general business litigation. Based on advice of counsel and available information, including current status or stage of proceeding, and taking into account accruals for matters where we have established them, we currently believe that any liabilities ultimately resulting from such claims and proceedings will not, individually or in the aggregate, have a material adverse effect on our consolidated financial condition, results of operations or cash flows. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (shares in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Numerator: Net income available to common stockholders $ 270 $ 270 445 453 Denominator: Denominator for basic earnings per share—weighted-average common shares 78,264 83,456 78,829 83,854 Effect of dilutive securities: Employee stock options 108 370 200 393 Restricted stock units 95 373 211 476 Denominator for diluted earnings per share—adjusted weighted-average common shares 78,467 84,199 79,240 84,723 Basic earnings per share $ 3.45 $ 3.22 $ 5.65 $ 5.40 Diluted earnings per share $ 3.44 $ 3.20 $ 5.62 $ 5.34 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information of Guarantor Subsidiaries | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Information of Guarantor Subsidiaries | Condensed Consolidating Financial Information of Guarantor Subsidiaries URNA is 100 percent owned by Holdings (“Parent”) and has certain outstanding indebtedness that is guaranteed by both Parent and, with the exception of its U.S. special purpose vehicle which holds receivable assets relating to the Company’s accounts receivable securitization facility (the “SPV”), all of URNA’s U.S. subsidiaries (the “guarantor subsidiaries”). Other than the guarantee by certain Canadian subsidiaries of URNA's indebtedness under the ABL facility, none of URNA’s indebtedness is guaranteed by URNA's foreign subsidiaries or the SPV (together, the “non-guarantor subsidiaries”). The receivable assets owned by the SPV have been sold or contributed by URNA to the SPV and are not available to satisfy the obligations of URNA or Parent’s other subsidiaries. The guarantor subsidiaries are all 100 percent -owned and the guarantees are made on a joint and several basis. The guarantees are not full and unconditional because a guarantor subsidiary can be automatically released and relieved of its obligations under certain circumstances, including sale of the guarantor subsidiary, the sale of all or substantially all of the guarantor subsidiary's assets, the requirements for legal defeasance or covenant defeasance under the applicable indenture being met, designating the guarantor subsidiary as an unrestricted subsidiary for purposes of the applicable covenants or the notes being rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA. The guarantees are also subject to subordination provisions (to the same extent that the obligations of the issuer under the relevant notes are subordinated to other debt of the issuer) and to a standard limitation which provides that the maximum amount guaranteed by each guarantor will not exceed the maximum amount that can be guaranteed without making the guarantee void under fraudulent conveyance laws. Based on our understanding of Rule 3-10 of Regulation S-X ("Rule 3-10"), we believe that the guarantees of the guarantor subsidiaries comply with the conditions set forth in Rule 3-10 and therefore continue to utilize Rule 3-10 to present condensed consolidating financial information for Holdings, URNA, the guarantor subsidiaries and the non-guarantor subsidiaries. Separate consolidated financial statements of the guarantor subsidiaries have not been presented because management believes that such information would not be material to investors. However, condensed consolidating financial information is presented. Covenants in the ABL, accounts receivable securitization and term loan facilities, and the other agreements governing our debt, impose operating and financial restrictions on URNA, Parent and the guarantor subsidiaries, including limitations on the ability to make share repurchases and dividend payments. As of June 30, 2019 , the amount available for distribution under the most restrictive of these covenants was $ 843 . The Company’s total available capacity for making share repurchases and dividend payments includes the intercompany receivable balance of Parent. As of June 30, 2019 , our total available capacity for making share repurchases and dividend payments, which includes URNA’s capacity to make restricted payments and the intercompany receivable balance of Parent, was $2.766 billion . The condensed consolidating financial information of Parent and its subsidiaries is as follows: CONDENSED CONSOLIDATING BALANCE SHEET June 30, 2019 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV ASSETS Cash and cash equivalents $ — $ 51 $ — $ 24 $ — $ — $ 75 Accounts receivable, net — — — 150 1,375 — 1,525 Intercompany receivable (payable) 1,923 (1,807 ) (109 ) (8 ) 1 — — Inventory — 123 — 12 — — 135 Prepaid expenses and other assets — 87 — 18 — — 105 Total current assets 1,923 (1,546 ) (109 ) 196 1,376 — 1,840 Rental equipment, net — 9,091 — 748 — — 9,839 Property and equipment, net 59 420 49 50 — — 578 Investments in subsidiaries 1,507 1,598 1,034 — — (4,139 ) — Goodwill — 4,749 — 385 — — 5,134 Other intangible assets, net — 946 — 73 — — 1,019 Operating lease right-of-use assets — 550 — 69 — — 619 Other long-term assets 10 8 — — — — 18 Total assets $ 3,499 $ 15,816 $ 974 $ 1,521 $ 1,376 $ (4,139 ) $ 19,047 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ — $ 48 $ — $ 2 $ 945 $ — $ 995 Accounts payable — 687 — 65 — — 752 Accrued expenses and other liabilities — 729 11 46 2 — 788 Total current liabilities — 1,464 11 113 947 — 2,535 Long-term debt — 10,680 8 12 — — 10,700 Deferred taxes 21 1,632 — 90 — — 1,743 Operating lease liabilities — 439 — 58 — — 497 Other long-term liabilities — 94 — — — — 94 Total liabilities 21 14,309 19 273 947 — 15,569 Total stockholders’ equity (deficit) 3,478 1,507 955 1,248 429 (4,139 ) 3,478 Total liabilities and stockholders’ equity (deficit) $ 3,499 $ 15,816 $ 974 $ 1,521 $ 1,376 $ (4,139 ) $ 19,047 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2018 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV ASSETS Cash and cash equivalents $ — $ 1 $ — $ 42 $ — $ — $ 43 Accounts receivable, net — — — 159 1,386 — 1,545 Intercompany receivable (payable) 1,534 (1,423 ) (96 ) (15 ) — — — Inventory — 96 — 13 — — 109 Prepaid expenses and other assets — 60 — 4 — — 64 Total current assets 1,534 (1,266 ) (96 ) 203 1,386 — 1,761 Rental equipment, net — 8,910 — 690 — — 9,600 Property and equipment, net 57 462 40 55 — — 614 Investments in subsidiaries 1,826 1,646 980 — — (4,452 ) — Goodwill — 4,661 — 397 — — 5,058 Other intangible assets, net — 1,004 — 80 — — 1,084 Other long-term assets 9 7 — — — — 16 Total assets $ 3,426 $ 15,424 $ 924 $ 1,425 $ 1,386 $ (4,452 ) $ 18,133 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 1 $ 50 $ — $ 2 $ 850 $ — $ 903 Accounts payable — 481 — 55 — — 536 Accrued expenses and other liabilities — 619 14 42 2 — 677 Total current liabilities 1 1,150 14 99 852 — 2,116 Long-term debt — 10,778 9 57 — — 10,844 Deferred taxes 22 1,587 — 78 — — 1,687 Other long-term liabilities — 83 — — — — 83 Total liabilities 23 13,598 23 234 852 — 14,730 Total stockholders’ equity (deficit) 3,403 1,826 901 1,191 534 (4,452 ) 3,403 Total liabilities and stockholders’ equity (deficit) $ 3,426 $ 15,424 $ 924 $ 1,425 $ 1,386 $ (4,452 ) $ 18,133 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2019 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 1,798 $ — $ 161 $ 1 $ — $ 1,960 Sales of rental equipment — 181 — 16 — — 197 Sales of new equipment — 53 — 7 — — 60 Contractor supplies sales — 24 — 3 — — 27 Service and other revenues — 39 — 7 — — 46 Total revenues — 2,095 — 194 1 — 2,290 Cost of revenues: Cost of equipment rentals, excluding depreciation — 692 — 76 1 — 769 Depreciation of rental equipment — 367 — 32 — — 399 Cost of rental equipment sales — 108 — 8 — — 116 Cost of new equipment sales — 45 — 6 — — 51 Cost of contractor supplies sales — 17 — 2 — — 19 Cost of service and other revenues — 20 — 5 — — 25 Total cost of revenues — 1,249 — 129 1 — 1,379 Gross profit — 846 — 65 — — 911 Selling, general and administrative expenses (32 ) 259 — 32 12 — 271 Merger related costs — — — — — — — Restructuring charge — 6 — — — — 6 Non-rental depreciation and amortization 6 91 — 8 — — 105 Operating income (loss) 26 490 — 25 (12 ) — 529 Interest (income) expense, net (17 ) 189 — — 8 — 180 Other (income) expense, net (187 ) 213 — 15 (43 ) — (2 ) Income before provision (benefit) for income taxes 230 88 — 10 23 — 351 Provision (benefit) for income taxes 53 26 — (3 ) 5 — 81 Income before equity in net earnings (loss) of subsidiaries 177 62 — 13 18 — 270 Equity in net earnings (loss) of subsidiaries 93 31 10 — — (134 ) — Net income (loss) 270 93 10 13 18 (134 ) 270 Other comprehensive income (loss) 22 22 21 22 — (65 ) 22 Comprehensive income (loss) $ 292 $ 115 $ 31 $ 35 $ 18 $ (199 ) $ 292 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2018 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 1,507 $ — $ 124 $ — $ — $ 1,631 Sales of rental equipment — 143 — 14 — — 157 Sales of new equipment — 40 — 4 — — 44 Contractor supplies sales — 21 — 3 — — 24 Service and other revenues — 29 — 6 — — 35 Total revenues — 1,740 — 151 — — 1,891 Cost of revenues: Cost of equipment rentals, excluding depreciation — 561 — 59 — — 620 Depreciation of rental equipment — 298 — 25 — — 323 Cost of rental equipment sales — 85 — 7 — — 92 Cost of new equipment sales — 34 — 4 — — 38 Cost of contractor supplies sales — 14 — 2 — — 16 Cost of service and other revenues — 16 — 4 — — 20 Total cost of revenues — 1,008 — 101 — — 1,109 Gross profit — 732 — 50 — — 782 Selling, general and administrative expenses (35 ) 242 — 23 9 — 239 Merger related costs — 2 — — — — 2 Restructuring charge — 4 — — — — 4 Non-rental depreciation and amortization 4 58 — 5 — — 67 Operating income (loss) 31 426 — 22 (9 ) — 470 Interest (income) expense, net (8 ) 115 — — 5 — 112 Other (income) expense, net (156 ) 172 — 13 (30 ) — (1 ) Income before provision for income taxes 195 139 — 9 16 — 359 Provision for income taxes 43 40 — 2 4 — 89 Income before equity in net earnings (loss) of subsidiaries 152 99 — 7 12 — 270 Equity in net earnings (loss) of subsidiaries 118 19 7 — — (144 ) — Net income (loss) 270 118 7 7 12 (144 ) 270 Other comprehensive (loss) income (20 ) (20 ) (21 ) (90 ) — 131 (20 ) Comprehensive income (loss) $ 250 $ 98 $ (14 ) $ (83 ) $ 12 $ (13 ) $ 250 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2019 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 3,436 $ — $ 318 $ 1 $ — $ 3,755 Sales of rental equipment — 354 — 35 — — 389 Sales of new equipment — 106 — 16 — — 122 Contractor supplies sales — 46 — 5 — — 51 Service and other revenues — 78 — 12 — — 90 Total revenues — 4,020 — 386 1 — 4,407 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,349 — 161 1 — 1,511 Depreciation of rental equipment — 731 — 63 — — 794 Cost of rental equipment sales — 221 — 20 — — 241 Cost of new equipment sales — 91 — 14 — — 105 Cost of contractor supplies sales — 33 — 3 — — 36 Cost of service and other revenues — 41 — 7 — — 48 Total cost of revenues — 2,466 — 268 1 — 2,735 Gross profit — 1,554 — 118 — — 1,672 Selling, general and administrative expenses 21 442 — 59 29 — 551 Merger related costs — 1 — — — — 1 Restructuring charge — 15 — (1 ) — — 14 Non-rental depreciation and amortization 10 182 — 17 — — 209 Operating (loss) income (31 ) 914 — 43 (29 ) — 897 Interest (income) expense, net (33 ) 348 — — 16 — 331 Other (income) expense, net (359 ) 410 — 29 (85 ) — (5 ) Income before provision (benefit) for income taxes 361 156 — 14 40 — 571 Provision (benefit) for income taxes 76 42 — (2 ) 10 — 126 Income before equity in net earnings (loss) of subsidiaries 285 114 — 16 30 — 445 Equity in net earnings (loss) of subsidiaries 160 46 12 — — (218 ) — Net income (loss) 445 160 12 16 30 (218 ) 445 Other comprehensive income (loss) 43 43 42 41 — (126 ) 43 Comprehensive income (loss) $ 488 $ 203 $ 54 $ 57 $ 30 $ (344 ) $ 488 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2018 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 2,853 $ — $ 237 $ — $ — $ 3,090 Sales of rental equipment — 307 — 31 — — 338 Sales of new equipment — 77 — 9 — — 86 Contractor supplies sales — 36 — 6 — — 42 Service and other revenues — 60 — 9 — — 69 Total revenues — 3,333 — 292 — — 3,625 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,096 — 116 — — 1,212 Depreciation of rental equipment — 595 — 50 — — 645 Cost of rental equipment sales — 183 — 16 — — 199 Cost of new equipment sales — 67 — 8 — — 75 Cost of contractor supplies sales — 24 — 4 — — 28 Cost of service and other revenues — 33 — 5 — — 38 Total cost of revenues — 1,998 — 199 — — 2,197 Gross profit — 1,335 — 93 — — 1,428 Selling, general and administrative expenses 5 407 — 42 17 — 471 Merger related costs — 3 — — — — 3 Restructuring charge — 6 — — — — 6 Non-rental depreciation and amortization 8 120 — 10 — — 138 Operating (loss) income (13 ) 799 — 41 (17 ) — 810 Interest (income) expense, net (15 ) 227 1 (1 ) 10 (1 ) 221 Other (income) expense, net (297 ) 333 — 24 (62 ) — (2 ) Income (loss) before provision for income taxes 299 239 (1 ) 18 35 1 591 Provision for income taxes 60 64 — 5 9 — 138 Income (loss) before equity in net earnings (loss) of subsidiaries 239 175 (1 ) 13 26 1 453 Equity in net earnings (loss) of subsidiaries 214 39 13 — — (266 ) — Net income (loss) 453 214 12 13 26 (265 ) 453 Other comprehensive (loss) income (45 ) (45 ) (46 ) (113 ) — 204 (45 ) Comprehensive income (loss) $ 408 $ 169 $ (34 ) $ (100 ) $ 26 $ (61 ) $ 408 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Six Months Ended June 30, 2019 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Net cash provided by operating activities $ 9 $ 1,457 $ — $ 83 $ 41 $ — $ 1,590 Net cash used in investing activities (9 ) (943 ) — (54 ) — — (1,006 ) Net cash used in financing activities — (464 ) — (47 ) (41 ) — (552 ) Net increase (decrease) in cash and cash equivalents — 50 — (18 ) — — 32 Cash and cash equivalents at beginning of period — 1 — 42 — — 43 Cash and cash equivalents at end of period $ — $ 51 $ — $ 24 $ — $ — $ 75 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Six Months Ended June 30, 2018 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Net cash provided by (used in) operating activities $ 12 $ 1,714 $ (1 ) $ (66 ) $ (10 ) $ — $ 1,649 Net cash used in investing activities (12 ) (920 ) — (73 ) — — (1,005 ) Net cash (used in) provided by financing activities — (773 ) 1 (108 ) 10 — (870 ) Effect of foreign exchange rates — — — (9 ) — — (9 ) Net increase (decrease) in cash and cash equivalents — 21 — (256 ) — — (235 ) Cash and cash equivalents at beginning of period — 23 — 329 — — 352 Cash and cash equivalents at end of period $ — $ 44 $ — $ 73 $ — $ — $ 117 |
Organization, Description of _2
Organization, Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Measurement of Credit Losses on Financial Instruments. In June 2016, the Financial Accounting Standards Board ("FASB") issued guidance that will require companies to present assets held at amortized cost and available for sale debt securities net of the amount expected to be collected. The guidance requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectibility. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2019 and early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Different components of the guidance require modified retrospective or prospective adoption. This guidance does not apply to receivables arising from operating leases. As discussed in note 2 to the condensed consolidated financial statements, most of our equipment rental revenue is accounted for as lease revenue (such revenue represented 78 percent of our total revenues for the six months ended June 30, 2019 ). We expect to adopt this guidance when effective, and the impact on our financial statements, while limited to our non-operating lease receivables, is not currently estimable, as it will depend on market conditions and our forecast expectations upon, and following, adoption. Simplifying the Test for Goodwill Impairment . In January 2017, the FASB issued guidance intended to simplify the subsequent accounting for goodwill acquired in a business combination. Prior guidance required utilizing a two-step process to review goodwill for impairment. A second step was required if there was an indication that an impairment may exist, and the second step required calculating the potential impairment by comparing the implied fair value of the reporting unit's goodwill (as if purchase accounting were performed on the testing date) with the carrying amount of the goodwill. The new guidance eliminates the second step from the goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value (although the loss should not exceed the total amount of goodwill allocated to the reporting unit). The guidance requires prospective adoption and will be effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption of this guidance is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently assessing whether we will early adopt. The guidance is not expected to have a significant impact on our financial statements. Guidance Adopted in 2019 Leases . See note 8 to our condensed consolidated financial statements for a discussion of our lease accounting following our adoption of an updated FASB lease accounting standard in 2019. Adoption of Accounting Standards Codification (“ASC”) Topic 842, “Leases” In March 2016, the FASB issued guidance ("Topic 842") to increase transparency and comparability among organizations by requiring (1) recognition of lease assets and lease liabilities on the balance sheet and (2) disclosure of key information about leasing arrangements. Some changes to the lessor accounting guidance were made to align both of the following: (1) the lessor accounting guidance with certain changes made to the lessee accounting guidance and (2) key aspects of the lessor accounting model with revenue recognition guidance. We adopted Topic 842 at the required adoption date of January 1, 2019, using the transition method that allowed us to initially apply Topic 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We used the package of practical expedients permitted under the transition guidance that allowed us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We additionally used, for our real estate operating leases, the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. We did not recognize a material adjustment to the opening balance of retained earnings upon adoption. Because of the transition method we used to adopt Topic 842, Topic 842 was not applied to periods prior to adoption and the adoption of Topic 842 had no impact on our previously reported results. As discussed in note 2 to the condensed consolidated financial statements, most of our equipment rental revenues, which accounted for 85 percent of total revenues for the six months ended June 30, 2019 , were accounted for under the previous lease accounting standard through December 31, 2018 and are accounted for under Topic 842 following adoption. There were no significant changes to our revenue accounting upon adoption of Topic 842. See note 2 to the condensed consolidated financial statements for a discussion of our revenue accounting (such discussion includes lessor disclosures required under Topic 842). The adoption of Topic 842 had a material impact on our condensed consolidated balance sheet due to the recognition of right-of-use (“ROU”) assets and lease liabilities, as discussed further below. The adoption of Topic 842 did not have a material impact on our condensed consolidated income statement (as noted above, although a significant portion of our revenue is accounted for under Topic 842 following adoption, there were no significant changes to our revenue accounting upon adoption) or our condensed consolidated cash flow statement. |
Lease Revenues | Lease revenues (Topic 842) The accounting for the types of revenue that are accounted for under Topic 842 is discussed below. Owned equipment rentals represent our most significant revenue type (they accounted for 73 percent of total revenues for the six months ended June 30, 2019 ) and are governed by our standard rental contract. We account for such rentals as operating leases. The lease terms are included in our contracts, and the determination of whether our contracts contain leases generally does not require significant assumptions or judgments. Our lease revenues do not include material amounts of variable payments. Owned equipment rentals: Owned equipment rentals represent revenues from renting equipment that we own. We do not generally provide an option for the lessee to purchase the rented equipment at the end of the lease, and do not generate material revenue from sales of equipment under such options. We recognize revenues from renting equipment on a straight-line basis. Our rental contract periods are hourly, daily, weekly or monthly. By way of example, if a customer were to rent a piece of equipment and the daily, weekly and monthly rental rates for that particular piece were (in actual dollars) $100, $300 and $900, respectively, we would recognize revenue of $32.14 per day. The daily rate for recognition purposes is calculated by dividing the monthly rate of $900 by the monthly term of 28 days. This daily rate assumes that the equipment will be on rent for the full 28 days, as we are unsure of when the customer will return the equipment and therefore unsure of which rental contract period will apply. As part of this straight-line methodology, when the equipment is returned, we recognize as incremental revenue the excess, if any, between the amount the customer is contractually required to pay, which is based on the rental contract period applicable to the actual number of days the equipment was out on rent, over the cumulative amount of revenue recognized to date. In any given accounting period, we will have customers return equipment and be contractually required to pay us more than the cumulative amount of revenue recognized to date under the straight-line methodology. For instance, continuing the above example, if the customer rented the above piece of equipment on December 29 and returned it at the close of business on January 1, we would recognize incremental revenue on January 1 of $171.44 (in actual dollars, representing the difference between the amount the customer is contractually required to pay, or $300 at the weekly rate, and the cumulative amount recognized to date on a straight-line basis, or $128.56, which represents four days at $32.14 per day). We record amounts billed to customers in excess of recognizable revenue as deferred revenue on our balance sheet. We had deferred revenue (associated with both Topic 842/840 and Topic 606) of $58 and $56 as of June 30, 2019 and December 31, 2018 , respectively. As noted above, we are unsure of when the customer will return rented equipment. As such, we do not know how much the customer will owe us upon return of the equipment and cannot provide a maturity analysis of future lease payments. Our equipment is generally rented for short periods of time. Lessees do not provide residual value guarantees on rented equipment. We expect to derive significant future benefits from our equipment following the end of the rental term. Our rentals are generally short-term in nature, and our equipment is typically rented for the majority of the time that we own it. We additionally recognize revenue from sales of rental equipment when we dispose of the equipment. Re-rent revenue: Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. “Other” equipment rental revenue is primarily comprised of 1) Rental Protection Plan (or "RPP") revenue associated with the damage waiver customers can purchase when they rent our equipment to protect against potential loss or damage, 2) environmental charges associated with the rental of equipment, and 3) charges for rented equipment that is damaged by our customers. |
Revenue from Contracts With Customers | Revenues from contracts with customers (Topic 606) The accounting for the types of revenue that are accounted for under Topic 606 is discussed below. Substantially all of our revenues under Topic 606 are recognized at a point-in-time rather than over time. Delivery and pick-up: Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. “Other” equipment rental revenue is primarily comprised of revenues associated with the consumption of fuel by our customers which are recognized when the equipment is returned by the customer (and consumption, if any, can be measured). Sales of rental equipment, new equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is reasonably assured. Service and other revenues primarily represent revenues earned from providing repair and maintenance services on our customers’ fleet (including parts sales). Service revenue is recognized as the services are performed. Receivables and contract assets and liabilities As reflected above, most of our equipment rental revenue is accounted for under Topic 842 (such revenue represented 78 percent of our total revenues for the six months ended June 30, 2019 ). The customers that are responsible for the remaining revenue that is accounted for under Topic 606 are generally the same customers that rent our equipment. We manage credit risk associated with our accounts receivables at the customer level. Because the same customers generate the revenues that are accounted for under both Topic 606 and Topic 842, the discussions below on credit risk and our allowances for doubtful accounts address receivables arising from revenues from both Topic 606 and Topic 842 (Topic 840 for 2018). Concentration of credit risk with respect to our receivables is limited because a large number of geographically diverse customers makes up our customer base. Our largest customer accounted for less than one percent of total revenues for the six months ended June 30, 2019 , and for each of the last three full years. Our customer with the largest receivable balance represented approximately one percent of total receivables at June 30, 2019 and December 31, 2018 . We manage credit risk through credit approvals, credit limits and other monitoring procedures. Our allowances for doubtful accounts reflect our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience. Our estimate could require change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowances. Trade receivables that have contractual maturities of one year or less are written-off when they are determined to be uncollectible based on the criteria necessary to qualify as a deduction for federal tax purposes. Write-offs of such receivables require management approval based on specified dollar thresholds. During the six months ended June 30, 2019 and 2018 , we recognized total additions, excluding acquisitions, to our allowances for doubtful accounts of $27 and $12 , respectively, primarily 1) as a reduction to equipment rental revenue or 2) as bad debt expense within selling, general and administrative expenses in our condensed consolidated statements of income. We do no t have material contract assets, or impairment losses associated therewith, or material contract liabilities, associated with contracts with customers. Our contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. We did no t recognize material revenue during the three or six months ended June 30, 2019 or 2018 that was included in the contract liability balance as of the beginning of such periods. Performance obligations Most of our Topic 606 revenue is recognized at a point-in-time, rather than over time. Accordingly, in any particular period, we do not generally recognize a significant amount of revenue from performance obligations satisfied (or partially satisfied) in previous periods, and the amounts of such revenue recognized during the three and six months ended June 30, 2019 and 2018 were no t material. We also do not expect to recognize material revenue in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2019 . Payment terms Our Topic 606 revenues do not include material amounts of variable consideration. Our payment terms vary by the type and location of our customer and the products or services offered. The time between invoicing and when payment is due is not significant. Our contracts do not generally include a significant financing component. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. See above for a discussion of how we manage credit risk. Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities. Contract costs We do not recognize any assets associated with the incremental costs of obtaining a contract with a customer (for example, a sales commission) that we expect to recover. Most of our revenue is recognized at a point-in-time or over a period of one year or less, and we use the practical expedient that allows us to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. Contract estimates and judgments Our revenues accounted for under Topic 606 generally do not require significant estimates or judgments, primarily for the following reasons: • The transaction price is generally fixed and stated on our contracts; • As noted above, our contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation; • Our revenues do not include material amounts of variable consideration, or result in significant obligations associated with returns, refunds or warranties; and • Most of our revenue is recognized as of a point-in-time and the timing of the satisfaction of the applicable performance obligations is readily determinable. As noted above, our Topic 606 revenue is generally recognized at the time of delivery to, or pick-up by, the customer. We monitor and review our estimated standalone selling prices on a regular basis. |
Lease Accounting | Lease Accounting We determine if an arrangement is a lease at inception. Our material lease contracts are generally for real estate or vehicles, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. We lease real estate and equipment under operating leases. We lease a significant portion of our branch locations, and also lease other premises used for purposes such as district and regional offices and service centers. Our finance lease obligations consist primarily of rental equipment (primarily vehicles) and building leases. Operating leases result in the recognition of ROU assets and lease liabilities on the balance sheet. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Our lease terms may include options, at our sole discretion, to extend or terminate the lease that we are reasonably certain to exercise. The amount of payments associated with such options reflected in the “Maturity of lease liabilities” table below is not material. Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense on such leases is recognized on a straight-line basis over the lease term. The primary leases we enter into with initial terms of 12 months or less are for equipment that we rent from vendors and then rent to our customers. We generate sublease revenue from such leases that we refer to as "re-rent revenue" as discussed in note 2 to the condensed consolidated financial statements. Apart from the re-rent revenue discussed in note 2 , we do not generate material sublease income. We have lease agreements with lease and non-lease components, and, for our real estate operating leases, we account for the lease and non-lease components as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of changes in accounting principles | In the following table, revenue is summarized by type and by the applicable accounting standard. Three Months Ended June 30, 2019 2018 Topic 842 Topic 606 Total Topic 840 Topic 606 Total Revenues: Owned equipment rentals $ 1,668 $ — $ 1,668 $ 1,406 $ — $ 1,406 Re-rent revenue 37 — 37 29 — 29 Ancillary and other rental revenues: Delivery and pick-up — 143 143 — 112 112 Other 87 25 112 64 20 84 Total ancillary and other rental revenues 87 168 255 64 132 196 Total equipment rentals 1,792 168 1,960 1,499 132 1,631 Sales of rental equipment — 197 197 — 157 157 Sales of new equipment — 60 60 — 44 44 Contractor supplies sales — 27 27 — 24 24 Service and other revenues — 46 46 — 35 35 Total revenues $ 1,792 $ 498 $ 2,290 $ 1,499 $ 392 $ 1,891 Six Months Ended June 30, 2019 2018 Topic 842 Topic 606 Total Topic 840 Topic 606 Total Revenues: Owned equipment rentals $ 3,198 $ — $ 3,198 $ 2,671 $ — $ 2,671 Re-rent revenue 72 — 72 54 — 54 Ancillary and other rental revenues: Delivery and pick-up — 262 262 — 204 204 Other 167 56 223 120 41 161 Total ancillary and other rental revenues 167 318 485 120 245 365 Total equipment rentals 3,437 318 3,755 2,845 245 3,090 Sales of rental equipment — 389 389 — 338 338 Sales of new equipment — 122 122 — 86 86 Contractor supplies sales — 51 51 — 42 42 Service and other revenues — 90 90 — 69 69 Total revenues $ 3,437 $ 970 $ 4,407 $ 2,845 $ 780 $ 3,625 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of assets acquired and liabilities assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed. The purchase price allocations for these assets and liabilities are based on preliminary valuations and are subject to change as we obtain additional information during the acquisition measurement period. Accounts receivable, net of allowance for doubtful accounts (1) $ 117 Inventory 7 Rental equipment 1,078 Property and equipment 71 Intangibles (customer relationships) (2) 230 Other assets 42 Total identifiable assets acquired 1,545 Short-term debt and current maturities of long-term debt (3) (12 ) Current liabilities (130 ) Deferred taxes (7 ) Long-term debt (3) (25 ) Other long-term liabilities (4 ) Total liabilities assumed (178 ) Net identifiable assets acquired 1,367 Goodwill (4) 705 Net assets acquired $ 2,072 (1) The fair value of accounts receivables acquired was $117 , and the gross contractual amount was $125 . We estimated that $8 would be uncollectible. (2) The customer relationships are being amortized over a 5 year life. (3) The acquired debt reflects finance lease obligations. (4) All of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the acquisition is primarily reflective of BlueLine's going-concern value, the value of BlueLine's assembled workforce, new customer relationships expected to arise from the acquisition, and operational synergies that we expect to achieve that are not associated with the identifiable assets. $25 of goodwill is expected to be deductible for income tax purposes. The following table summarizes the fair values of the assets acquired and liabilities assumed. Accounts receivable, net of allowance for doubtful accounts (1) $ 74 Inventory 5 Rental equipment 268 Property and equipment 25 Intangibles (2) 171 Other assets 4 Total identifiable assets acquired 547 Current liabilities (61 ) Deferred taxes (13 ) Total liabilities assumed (74 ) Net identifiable assets acquired 473 Goodwill (3) 247 Net assets acquired $ 720 (1) The fair value of accounts receivables acquired was $74 , and the gross contractual amount was $81 . We estimated that $7 would be uncollectible. (2) The following table reflects the fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair value Life (years) Customer relationships $ 166 8 Trade names and associated trademarks 5 5 Total $ 171 (3) All of the goodwill was assigned to our trench, power and fluid solutions segment. The level of goodwill that resulted from the acquisition is primarily reflective of BakerCorp's going-concern value, the value of BakerCorp's assembled workforce, new customer relationships expected to arise from the acquisition, and operational synergies that we expect to achieve that are not associated with the identifiable assets. $6 of goodwill is expected to be deductible for income tax purposes. |
Schedule of intangible assets acquired | The following table reflects the fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair value Life (years) Customer relationships $ 166 8 Trade names and associated trademarks 5 5 Total $ 171 |
Summary of business acquisition, pro forma information | The tables below present unaudited pro forma consolidated income statement information as if BakerCorp and BlueLine had been included in our consolidated results for the entire period reflected. Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 United Rentals BlueLine BakerCorp Total United Rentals BlueLine BakerCorp Total Historic/pro forma revenues $ 1,891 $ 194 $ 82 $ 2,167 $ 3,625 $ 382 $ 156 $ 4,163 Historic/combined pretax income (loss) 359 (8 ) (8 ) 343 591 (30 ) (21 ) 540 Pro forma adjustments to pretax income (loss): Impact of fair value mark-ups/useful life changes on depreciation (1) (1 ) (3 ) (4 ) (3 ) (6 ) (9 ) Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales (2) (3 ) — (3 ) (8 ) — (8 ) Intangible asset amortization (3) (19 ) (10 ) (29 ) (38 ) (20 ) (58 ) Interest expense (4) (27 ) (6 ) (33 ) (54 ) (12 ) (66 ) Elimination of historic interest (5) 32 11 43 63 21 84 Elimination of merger related costs (6) 2 1 3 2 1 3 Restructuring charges (7) (10 ) (3 ) (13 ) (23 ) (9 ) (32 ) Pro forma pretax income $ 307 $ 454 (1) Depreciation of rental equipment and non-rental depreciation were adjusted for the fair value mark-ups, and the changes in useful lives and salvage values, of the equipment acquired in the BakerCorp and BlueLine acquisitions. (2) Cost of rental equipment sales was adjusted for the fair value mark-ups of rental equipment acquired in the BlueLine acquisition. BakerCorp did not historically recognize a material amount of rental equipment sales, and accordingly no adjustment was required for BakerCorp. (3) The intangible assets acquired in the BakerCorp and BlueLine acquisitions were amortized. (4) As discussed above, we issued debt to fund the BakerCorp and BlueLine acquisitions. Interest expense was adjusted to reflect these changes in our debt portfolio. (5) Historic interest on debt that is not part of the combined entity was eliminated. (6) Merger related costs primarily comprised of financial and legal advisory fees associated with the BakerCorp and BlueLine acquisitions were eliminated as they were assumed to have been recognized prior to the pro forma acquisition date. The adjustments for BlueLine for the three and six months ended June 30, 2018 include $2 of merger related costs recognized by BlueLine prior to the acquisition. (7) We expect to recognize restructuring charges primarily comprised of severance costs and branch closure charges associated with the acquisitions over a period of approximately one year following the acquisition dates, which, for the pro forma presentation, was January 1, 2018. The adjustments above reflect the timing of the actual restructuring charges following the acquisitions (the pro forma restructuring charges above for the three and six months ended June 30, 2018 reflect the actual restructuring charges recognized during the three and six months following the acquisitions). We expect to incur additional restructuring charges for BakerCorp and BlueLine, however the remaining costs are not currently estimable, as we are still identifying the actions that will be undertaken. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Financial information by segment | The following tables set forth financial information by segment. General rentals Trench, power and fluid solutions Total Three Months Ended June 30, 2019 Equipment rentals $ 1,527 $ 433 $ 1,960 Sales of rental equipment 180 17 197 Sales of new equipment 52 8 60 Contractor supplies sales 19 8 27 Service and other revenues 40 6 46 Total revenue 1,818 472 2,290 Depreciation and amortization expense 416 88 504 Equipment rentals gross profit 593 199 792 Three Months Ended June 30, 2018 Equipment rentals $ 1,332 $ 299 $ 1,631 Sales of rental equipment 145 12 157 Sales of new equipment 38 6 44 Contractor supplies sales 19 5 24 Service and other revenues 32 3 35 Total revenue 1,566 325 1,891 Depreciation and amortization expense 334 56 390 Equipment rentals gross profit 543 145 688 Six Months Ended June 30, 2019 Equipment rentals $ 2,950 $ 805 $ 3,755 Sales of rental equipment 358 31 389 Sales of new equipment 107 15 122 Contractor supplies sales 36 15 51 Service and other revenues 77 13 90 Total revenue 3,528 879 4,407 Depreciation and amortization expense 828 175 1,003 Equipment rentals gross profit 1,094 356 1,450 Capital expenditures 1,015 211 1,226 Six Months Ended June 30, 2018 Equipment rentals $ 2,533 $ 557 $ 3,090 Sales of rental equipment 316 22 338 Sales of new equipment 75 11 86 Contractor supplies sales 33 9 42 Service and other revenues 62 7 69 Total revenue 3,019 606 3,625 Depreciation and amortization expense 671 112 783 Equipment rentals gross profit 969 264 1,233 Capital expenditures 1,153 153 1,306 June 30, December 31, Total reportable segment assets General rentals $ 16,124 $ 15,597 Trench, power and fluid solutions 2,923 2,536 Total assets $ 19,047 $ 18,133 |
Reconciliation to equipment rentals gross profit | The following is a reconciliation of equipment rentals gross profit to income before provision for income taxes: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Total equipment rentals gross profit $ 792 $ 688 $ 1,450 $ 1,233 Gross profit from other lines of business 119 94 222 195 Selling, general and administrative expenses (271 ) (239 ) (551 ) (471 ) Merger related costs — (2 ) (1 ) (3 ) Restructuring charge (6 ) (4 ) (14 ) (6 ) Non-rental depreciation and amortization (105 ) (67 ) (209 ) (138 ) Interest expense, net (180 ) (112 ) (331 ) (221 ) Other income, net 2 1 5 2 Income before provision for income taxes $ 351 $ 359 $ 571 $ 591 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring reserve by type of cost | The table below provides certain information concerning restructuring activity under the BakerCorp/BlueLine restructuring program during the six months ended June 30, 2019 : Reserve Balance at Charged to Payments Reserve Balance at December 31, 2018 June 30, 2019 Branch closure charges $ 3 $ 13 $ (2 ) $ 14 Severance and other 9 5 (11 ) 3 Total $ 12 $ 18 $ (13 ) $ 17 _________________ (1) Reflected in our condensed consolidated statements of income as “Restructuring charge” (such charge also includes activity under our closed restructuring programs). These charges are not allocated to our reportable segments. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | The estimated fair values of our financial instruments, all of which are categorized in Level 1 of the fair value hierarchy, as of June 30, 2019 and December 31, 2018 have been calculated based upon available market information, and were as follows: June 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Senior notes $ 8,005 $ 8,396 $ 8,102 $ 7,632 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Assets and liabilities of leases | The tables below present financial information associated with our leases. This information is only presented as of, and for the three and six months ended, June 30, 2019 because, as noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption. Classification June 30, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 619 Finance lease assets Rental equipment 267 Less accumulated depreciation (91 ) Rental equipment, net 176 Property and equipment, net: Non-rental vehicles 8 Buildings 16 Less accumulated depreciation and amortization (19 ) Property and equipment, net 5 Total leased assets 800 Liabilities Current Operating Accrued expenses and other liabilities 170 Finance Short-term debt and current maturities of long-term debt 40 Long-term Operating Operating lease liabilities 497 Finance Long-term debt 75 Total lease liabilities $ 782 |
Lease, cost | Other information Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 102 Operating cash flows from finance leases 3 Financing cash flows from finance leases 22 Leased assets obtained in exchange for new operating lease liabilities 104 Leased assets obtained in exchange for new finance lease liabilities $ 17 Lease term and discount rate June 30, 2019 Weighted-average remaining lease term (years) Operating leases 4.5 Finance leases 3.5 Weighted-average discount rate Operating leases 4.9 % Finance leases 3.9 % Lease cost Classification Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost (1) Cost of equipment rentals, excluding depreciation (1) $ 86 $ 175 Selling, general and administrative expenses 2 5 Restructuring charge 7 13 Finance lease cost Amortization of leased assets Depreciation of rental equipment 7 14 Non-rental depreciation and amortization — 1 Interest on lease liabilities Interest expense, net 1 3 Sublease income (2) (37 ) (72 ) Net lease cost $ 66 $ 139 _________________ (1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the three and six months ended, June 30, 2019 includes $ 29 and $ 63 , respectively, of short-term lease costs associated with equipment that we rent from vendors and then rent to our customers, as discussed further above. Apart from these costs, short-term lease costs are immaterial. (2) Primarily reflects re-rent revenue as discussed further above. |
Lessee, operating lease, liability, maturity | Maturity of lease liabilities (as of June 30, 2019) Operating leases (1) Finance leases (2) 2019 $ 116 $ 22 2020 188 38 2021 156 38 2022 117 14 2023 82 3 Thereafter 98 6 Total 757 121 Less amount representing interest (90 ) (6 ) Present value of lease liabilities $ 667 $ 115 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of June 30, 2019 . The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. (2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. |
Finance lease, liability, maturity | Maturity of lease liabilities (as of June 30, 2019) Operating leases (1) Finance leases (2) 2019 $ 116 $ 22 2020 188 38 2021 156 38 2022 117 14 2023 82 3 Thereafter 98 6 Total 757 121 Less amount representing interest (90 ) (6 ) Present value of lease liabilities $ 667 $ 115 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of June 30, 2019 . The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. (2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | Debt, net of unamortized original issue discounts or premiums, and unamortized debt issuance costs, consists of the following: June 30, 2019 December 31, 2018 Accounts Receivable Securitization Facility expiring 2020 (1) (2) $ 945 $ 850 $3.75 billion ABL Facility expiring 2024 (1) (3) 1,646 1,685 Term loan facility expiring 2025 (1) 984 988 4 5 / 8 percent Senior Secured Notes due 2023 994 994 5 3 / 4 percent Senior Notes due 2024 (4) — 842 5 1 / 2 percent Senior Notes due 2025 794 794 4 5 / 8 percent Senior Notes due 2025 742 741 5 7 / 8 percent Senior Notes due 2026 999 999 6 1 / 2 percent Senior Notes due 2026 1,088 1,087 5 1 / 2 percent Senior Notes due 2027 992 991 4 7 / 8 percent Senior Notes due 2028 (5) 1,651 1,650 4 7 / 8 percent Senior Notes due 2028 (5) 4 4 5 1 / 4 percent Senior Notes due 2030 (6) 741 — Finance leases (7) 115 — Capital leases (7) — 122 Total debt 11,695 11,747 Less short-term portion (8) (995 ) (903 ) Total long-term debt $ 10,700 $ 10,844 ___________________ (1) The table below presents financial information associated with our variable rate indebtedness as of and for the six months ended June 30, 2019 . We have borrowed the full available amount under the term loan facility. The principal obligation under the term loan facility is required to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent per annum, with the balance due at the maturity of the facility. The average amount of debt outstanding under the term loan facility decreases slightly each quarter due to the requirement to repay a portion of the principal obligation. ABL facility Accounts receivable securitization facility Term loan facility Borrowing capacity, net of letters of credit $ 2,046 $ 30 $ — Letters of credit 45 Interest rate at June 30, 2019 3.9 % 3.2 % 4.2 % Average month-end debt outstanding 1,558 898 995 Weighted-average interest rate on average debt outstanding 4.0 % 3.3 % 4.2 % Maximum month-end debt outstanding 1,691 958 998 (2) In June 2019, the accounts receivable securitization facility was amended, primarily to extend the maturity date which may be further extended on a 364-day basis by mutual agreement with the purchasers under the facility. The facility expires on June 26, 2020. Borrowings under the accounts receivable securitization facility are permitted only to the extent that the face amount of the receivables in the collateral pool, net of applicable reserves and other deductions, exceeds the outstanding loans. As of June 30, 2019 , there were $1.001 billion of receivables, net of applicable reserves and other deductions, in the collateral pool. (3) In February 2019, the ABL facility was amended, primarily to increase the facility size to $3.75 billion , extend the maturity date to February 2024 and make a portion of the facility available for borrowing in British Pounds and Euros by certain subsidiaries of URNA in Europe. (4) In May 2019, URNA redeemed all of its 5 3 / 4 percent Senior Notes. Upon redemption, we recognized a loss of $32 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the redeemed notes. (5) URNA separately issued 4 7 / 8 percent Senior Notes in August 2017 and in September 2017. Following the issuances, URNA consummated an exchange offer pursuant to which most of the 4 7 / 8 percent Senior Notes issued in September 2017 were exchanged for additional notes fungible with the 4 7 / 8 percent Senior Notes issued in August 2017. (6) In May 2019, URNA issued $750 aggregate principal amount of 5 1 / 4 percent Senior Notes (the “5 1 / 4 percent Notes”) which are due January 15, 2030. The net proceeds from the issuance were approximately $741 (after deducting offering expenses). The 5 1 / 4 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 5 1 / 4 percent Notes may be redeemed on or after January 15, 2025, at specified redemption prices that range from 102.625 percent in 2025, to 100 percent in 2028 and thereafter, in each case, plus accrued and unpaid interest, if any. In addition, at any time on or prior to January 15, 2023, up to 40 percent of the aggregate principal amount of the 5 1 / 4 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 105.250 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 5 1 / 4 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) mergers and consolidations; (iii) sales, transfers and other dispositions of assets; (iv) dividends and other distributions, stock repurchases and redemptions and other restricted payments; and (v) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the covenant relating to dividends and other distributions, stock repurchases and redemptions and other restricted payments and the requirements relating to additional subsidiary guarantors will not apply to URNA and its restricted subsidiaries during any period when the 5 1 / 4 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 5 1 / 4 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. (7) As discussed in note 8 to the condensed consolidated financial statements, we adopted an updated lease accounting standard on January 1, 2019. Upon adoption of the new standard, the leases that were previously classified as capital leases through December 31, 2018 were classified as finance leases. There were no significant changes to the accounting upon this change in classification. (8) As of June 30, 2019 , our short-term debt primarily reflects $ 945 of borrowings under our accounts receivable securitization facility. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table sets forth the computation of basic and diluted earnings per share (shares in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Numerator: Net income available to common stockholders $ 270 $ 270 445 453 Denominator: Denominator for basic earnings per share—weighted-average common shares 78,264 83,456 78,829 83,854 Effect of dilutive securities: Employee stock options 108 370 200 393 Restricted stock units 95 373 211 476 Denominator for diluted earnings per share—adjusted weighted-average common shares 78,467 84,199 79,240 84,723 Basic earnings per share $ 3.45 $ 3.22 $ 5.65 $ 5.40 Diluted earnings per share $ 3.44 $ 3.20 $ 5.62 $ 5.34 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information of Guarantor Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED CONSOLIDATING BALANCE SHEET | The condensed consolidating financial information of Parent and its subsidiaries is as follows: CONDENSED CONSOLIDATING BALANCE SHEET June 30, 2019 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV ASSETS Cash and cash equivalents $ — $ 51 $ — $ 24 $ — $ — $ 75 Accounts receivable, net — — — 150 1,375 — 1,525 Intercompany receivable (payable) 1,923 (1,807 ) (109 ) (8 ) 1 — — Inventory — 123 — 12 — — 135 Prepaid expenses and other assets — 87 — 18 — — 105 Total current assets 1,923 (1,546 ) (109 ) 196 1,376 — 1,840 Rental equipment, net — 9,091 — 748 — — 9,839 Property and equipment, net 59 420 49 50 — — 578 Investments in subsidiaries 1,507 1,598 1,034 — — (4,139 ) — Goodwill — 4,749 — 385 — — 5,134 Other intangible assets, net — 946 — 73 — — 1,019 Operating lease right-of-use assets — 550 — 69 — — 619 Other long-term assets 10 8 — — — — 18 Total assets $ 3,499 $ 15,816 $ 974 $ 1,521 $ 1,376 $ (4,139 ) $ 19,047 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ — $ 48 $ — $ 2 $ 945 $ — $ 995 Accounts payable — 687 — 65 — — 752 Accrued expenses and other liabilities — 729 11 46 2 — 788 Total current liabilities — 1,464 11 113 947 — 2,535 Long-term debt — 10,680 8 12 — — 10,700 Deferred taxes 21 1,632 — 90 — — 1,743 Operating lease liabilities — 439 — 58 — — 497 Other long-term liabilities — 94 — — — — 94 Total liabilities 21 14,309 19 273 947 — 15,569 Total stockholders’ equity (deficit) 3,478 1,507 955 1,248 429 (4,139 ) 3,478 Total liabilities and stockholders’ equity (deficit) $ 3,499 $ 15,816 $ 974 $ 1,521 $ 1,376 $ (4,139 ) $ 19,047 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2018 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV ASSETS Cash and cash equivalents $ — $ 1 $ — $ 42 $ — $ — $ 43 Accounts receivable, net — — — 159 1,386 — 1,545 Intercompany receivable (payable) 1,534 (1,423 ) (96 ) (15 ) — — — Inventory — 96 — 13 — — 109 Prepaid expenses and other assets — 60 — 4 — — 64 Total current assets 1,534 (1,266 ) (96 ) 203 1,386 — 1,761 Rental equipment, net — 8,910 — 690 — — 9,600 Property and equipment, net 57 462 40 55 — — 614 Investments in subsidiaries 1,826 1,646 980 — — (4,452 ) — Goodwill — 4,661 — 397 — — 5,058 Other intangible assets, net — 1,004 — 80 — — 1,084 Other long-term assets 9 7 — — — — 16 Total assets $ 3,426 $ 15,424 $ 924 $ 1,425 $ 1,386 $ (4,452 ) $ 18,133 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 1 $ 50 $ — $ 2 $ 850 $ — $ 903 Accounts payable — 481 — 55 — — 536 Accrued expenses and other liabilities — 619 14 42 2 — 677 Total current liabilities 1 1,150 14 99 852 — 2,116 Long-term debt — 10,778 9 57 — — 10,844 Deferred taxes 22 1,587 — 78 — — 1,687 Other long-term liabilities — 83 — — — — 83 Total liabilities 23 13,598 23 234 852 — 14,730 Total stockholders’ equity (deficit) 3,403 1,826 901 1,191 534 (4,452 ) 3,403 Total liabilities and stockholders’ equity (deficit) $ 3,426 $ 15,424 $ 924 $ 1,425 $ 1,386 $ (4,452 ) $ 18,133 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME | CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2019 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 1,798 $ — $ 161 $ 1 $ — $ 1,960 Sales of rental equipment — 181 — 16 — — 197 Sales of new equipment — 53 — 7 — — 60 Contractor supplies sales — 24 — 3 — — 27 Service and other revenues — 39 — 7 — — 46 Total revenues — 2,095 — 194 1 — 2,290 Cost of revenues: Cost of equipment rentals, excluding depreciation — 692 — 76 1 — 769 Depreciation of rental equipment — 367 — 32 — — 399 Cost of rental equipment sales — 108 — 8 — — 116 Cost of new equipment sales — 45 — 6 — — 51 Cost of contractor supplies sales — 17 — 2 — — 19 Cost of service and other revenues — 20 — 5 — — 25 Total cost of revenues — 1,249 — 129 1 — 1,379 Gross profit — 846 — 65 — — 911 Selling, general and administrative expenses (32 ) 259 — 32 12 — 271 Merger related costs — — — — — — — Restructuring charge — 6 — — — — 6 Non-rental depreciation and amortization 6 91 — 8 — — 105 Operating income (loss) 26 490 — 25 (12 ) — 529 Interest (income) expense, net (17 ) 189 — — 8 — 180 Other (income) expense, net (187 ) 213 — 15 (43 ) — (2 ) Income before provision (benefit) for income taxes 230 88 — 10 23 — 351 Provision (benefit) for income taxes 53 26 — (3 ) 5 — 81 Income before equity in net earnings (loss) of subsidiaries 177 62 — 13 18 — 270 Equity in net earnings (loss) of subsidiaries 93 31 10 — — (134 ) — Net income (loss) 270 93 10 13 18 (134 ) 270 Other comprehensive income (loss) 22 22 21 22 — (65 ) 22 Comprehensive income (loss) $ 292 $ 115 $ 31 $ 35 $ 18 $ (199 ) $ 292 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2018 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 1,507 $ — $ 124 $ — $ — $ 1,631 Sales of rental equipment — 143 — 14 — — 157 Sales of new equipment — 40 — 4 — — 44 Contractor supplies sales — 21 — 3 — — 24 Service and other revenues — 29 — 6 — — 35 Total revenues — 1,740 — 151 — — 1,891 Cost of revenues: Cost of equipment rentals, excluding depreciation — 561 — 59 — — 620 Depreciation of rental equipment — 298 — 25 — — 323 Cost of rental equipment sales — 85 — 7 — — 92 Cost of new equipment sales — 34 — 4 — — 38 Cost of contractor supplies sales — 14 — 2 — — 16 Cost of service and other revenues — 16 — 4 — — 20 Total cost of revenues — 1,008 — 101 — — 1,109 Gross profit — 732 — 50 — — 782 Selling, general and administrative expenses (35 ) 242 — 23 9 — 239 Merger related costs — 2 — — — — 2 Restructuring charge — 4 — — — — 4 Non-rental depreciation and amortization 4 58 — 5 — — 67 Operating income (loss) 31 426 — 22 (9 ) — 470 Interest (income) expense, net (8 ) 115 — — 5 — 112 Other (income) expense, net (156 ) 172 — 13 (30 ) — (1 ) Income before provision for income taxes 195 139 — 9 16 — 359 Provision for income taxes 43 40 — 2 4 — 89 Income before equity in net earnings (loss) of subsidiaries 152 99 — 7 12 — 270 Equity in net earnings (loss) of subsidiaries 118 19 7 — — (144 ) — Net income (loss) 270 118 7 7 12 (144 ) 270 Other comprehensive (loss) income (20 ) (20 ) (21 ) (90 ) — 131 (20 ) Comprehensive income (loss) $ 250 $ 98 $ (14 ) $ (83 ) $ 12 $ (13 ) $ 250 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2019 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 3,436 $ — $ 318 $ 1 $ — $ 3,755 Sales of rental equipment — 354 — 35 — — 389 Sales of new equipment — 106 — 16 — — 122 Contractor supplies sales — 46 — 5 — — 51 Service and other revenues — 78 — 12 — — 90 Total revenues — 4,020 — 386 1 — 4,407 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,349 — 161 1 — 1,511 Depreciation of rental equipment — 731 — 63 — — 794 Cost of rental equipment sales — 221 — 20 — — 241 Cost of new equipment sales — 91 — 14 — — 105 Cost of contractor supplies sales — 33 — 3 — — 36 Cost of service and other revenues — 41 — 7 — — 48 Total cost of revenues — 2,466 — 268 1 — 2,735 Gross profit — 1,554 — 118 — — 1,672 Selling, general and administrative expenses 21 442 — 59 29 — 551 Merger related costs — 1 — — — — 1 Restructuring charge — 15 — (1 ) — — 14 Non-rental depreciation and amortization 10 182 — 17 — — 209 Operating (loss) income (31 ) 914 — 43 (29 ) — 897 Interest (income) expense, net (33 ) 348 — — 16 — 331 Other (income) expense, net (359 ) 410 — 29 (85 ) — (5 ) Income before provision (benefit) for income taxes 361 156 — 14 40 — 571 Provision (benefit) for income taxes 76 42 — (2 ) 10 — 126 Income before equity in net earnings (loss) of subsidiaries 285 114 — 16 30 — 445 Equity in net earnings (loss) of subsidiaries 160 46 12 — — (218 ) — Net income (loss) 445 160 12 16 30 (218 ) 445 Other comprehensive income (loss) 43 43 42 41 — (126 ) 43 Comprehensive income (loss) $ 488 $ 203 $ 54 $ 57 $ 30 $ (344 ) $ 488 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2018 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 2,853 $ — $ 237 $ — $ — $ 3,090 Sales of rental equipment — 307 — 31 — — 338 Sales of new equipment — 77 — 9 — — 86 Contractor supplies sales — 36 — 6 — — 42 Service and other revenues — 60 — 9 — — 69 Total revenues — 3,333 — 292 — — 3,625 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,096 — 116 — — 1,212 Depreciation of rental equipment — 595 — 50 — — 645 Cost of rental equipment sales — 183 — 16 — — 199 Cost of new equipment sales — 67 — 8 — — 75 Cost of contractor supplies sales — 24 — 4 — — 28 Cost of service and other revenues — 33 — 5 — — 38 Total cost of revenues — 1,998 — 199 — — 2,197 Gross profit — 1,335 — 93 — — 1,428 Selling, general and administrative expenses 5 407 — 42 17 — 471 Merger related costs — 3 — — — — 3 Restructuring charge — 6 — — — — 6 Non-rental depreciation and amortization 8 120 — 10 — — 138 Operating (loss) income (13 ) 799 — 41 (17 ) — 810 Interest (income) expense, net (15 ) 227 1 (1 ) 10 (1 ) 221 Other (income) expense, net (297 ) 333 — 24 (62 ) — (2 ) Income (loss) before provision for income taxes 299 239 (1 ) 18 35 1 591 Provision for income taxes 60 64 — 5 9 — 138 Income (loss) before equity in net earnings (loss) of subsidiaries 239 175 (1 ) 13 26 1 453 Equity in net earnings (loss) of subsidiaries 214 39 13 — — (266 ) — Net income (loss) 453 214 12 13 26 (265 ) 453 Other comprehensive (loss) income (45 ) (45 ) (46 ) (113 ) — 204 (45 ) Comprehensive income (loss) $ 408 $ 169 $ (34 ) $ (100 ) $ 26 $ (61 ) $ 408 |
CONDENSED CONSOLIDATING CASH FLOW INFORMATION | CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Six Months Ended June 30, 2019 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Net cash provided by operating activities $ 9 $ 1,457 $ — $ 83 $ 41 $ — $ 1,590 Net cash used in investing activities (9 ) (943 ) — (54 ) — — (1,006 ) Net cash used in financing activities — (464 ) — (47 ) (41 ) — (552 ) Net increase (decrease) in cash and cash equivalents — 50 — (18 ) — — 32 Cash and cash equivalents at beginning of period — 1 — 42 — — 43 Cash and cash equivalents at end of period $ — $ 51 $ — $ 24 $ — $ — $ 75 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Six Months Ended June 30, 2018 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Net cash provided by (used in) operating activities $ 12 $ 1,714 $ (1 ) $ (66 ) $ (10 ) $ — $ 1,649 Net cash used in investing activities (12 ) (920 ) — (73 ) — — (1,005 ) Net cash (used in) provided by financing activities — (773 ) 1 (108 ) 10 — (870 ) Effect of foreign exchange rates — — — (9 ) — — (9 ) Net increase (decrease) in cash and cash equivalents — 21 — (256 ) — — (235 ) Cash and cash equivalents at beginning of period — 23 — 329 — — 352 Cash and cash equivalents at end of period $ — $ 44 $ — $ 73 $ — $ — $ 117 |
Organization, Description of _3
Organization, Description of Business and Basis of Presentation (Details) - Equipment rental revenue - Product concentration risk | 6 Months Ended |
Jun. 30, 2019 | |
Business Acquisition [Line Items] | |
Percentage of equipment rental revenue | 85.00% |
Topic 842 | |
Business Acquisition [Line Items] | |
Percentage of equipment rental revenue | 78.00% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Owned equipment rentals | $ 1,668 | $ 1,406 | $ 3,198 | $ 2,671 |
Re-rent revenue | 37 | 29 | 72 | 54 |
Ancillary and other rental revenues: | ||||
Revenues | 2,290 | 1,891 | 4,407 | 3,625 |
Topic 842 | ||||
Revenues: | ||||
Owned equipment rentals | 1,668 | 3,198 | ||
Re-rent revenue | 37 | 72 | ||
Ancillary and other rental revenues: | ||||
Revenues | 1,792 | 3,437 | ||
Topic 840 | ||||
Revenues: | ||||
Owned equipment rentals | 1,406 | 2,671 | ||
Re-rent revenue | 29 | 54 | ||
Ancillary and other rental revenues: | ||||
Revenues | 1,499 | 2,845 | ||
Topic 606 | ||||
Ancillary and other rental revenues: | ||||
Revenues | 498 | 392 | 970 | 780 |
Ancillary and Other Rental Revenues | ||||
Revenues: | ||||
Revenue from contract with customer | 143 | 112 | 262 | 204 |
Ancillary and other rental revenues: | ||||
Other Income | 112 | 84 | 223 | 161 |
Revenues | 255 | 196 | 485 | 365 |
Ancillary and Other Rental Revenues | Topic 842 | ||||
Revenues: | ||||
Revenue from contract with customer | 0 | 0 | ||
Ancillary and other rental revenues: | ||||
Other Income | 87 | 167 | ||
Revenues | 87 | 167 | ||
Ancillary and Other Rental Revenues | Topic 840 | ||||
Revenues: | ||||
Revenue from contract with customer | 0 | 0 | ||
Ancillary and other rental revenues: | ||||
Other Income | 64 | 120 | ||
Revenues | 64 | 120 | ||
Ancillary and Other Rental Revenues | Topic 606 | ||||
Revenues: | ||||
Revenue from contract with customer | 143 | 112 | 262 | 204 |
Ancillary and other rental revenues: | ||||
Other Income | 25 | 20 | 56 | 41 |
Revenues | 168 | 132 | 318 | 245 |
Equipment rentals | ||||
Ancillary and other rental revenues: | ||||
Revenues | 1,960 | 1,631 | 3,755 | 3,090 |
Equipment rentals | Topic 842 | ||||
Ancillary and other rental revenues: | ||||
Revenues | 1,792 | 3,437 | ||
Equipment rentals | Topic 840 | ||||
Ancillary and other rental revenues: | ||||
Revenues | 1,499 | 2,845 | ||
Equipment rentals | Topic 606 | ||||
Ancillary and other rental revenues: | ||||
Revenues | 168 | 132 | 318 | 245 |
Sales of rental equipment | ||||
Revenues: | ||||
Revenue from contract with customer | 197 | 157 | 389 | 338 |
Sales of rental equipment | Topic 606 | ||||
Revenues: | ||||
Revenue from contract with customer | 197 | 157 | 389 | 338 |
Sales of new equipment | ||||
Revenues: | ||||
Revenue from contract with customer | 60 | 44 | 122 | 86 |
Sales of new equipment | Topic 606 | ||||
Revenues: | ||||
Revenue from contract with customer | 60 | 44 | 122 | 86 |
Contractor supplies sales | ||||
Revenues: | ||||
Revenue from contract with customer | 27 | 24 | 51 | 42 |
Contractor supplies sales | Topic 606 | ||||
Revenues: | ||||
Revenue from contract with customer | 27 | 24 | 51 | 42 |
Service and other revenues | ||||
Revenues: | ||||
Revenue from contract with customer | 46 | 35 | 90 | 69 |
Service and other revenues | Topic 606 | ||||
Revenues: | ||||
Revenue from contract with customer | $ 46 | $ 35 | $ 90 | $ 69 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||||
Contract with customer, liability | $ 58,000,000 | $ 58,000,000 | $ 56,000,000 | ||||
Allowance for doubtful accounts receivable, period increase (decrease) | 27,000,000 | $ 12,000,000 | |||||
Contract with customer, asset | 0 | 0 | |||||
Revenue recognized | 0 | 0 | 0 | $ 0 | |||
Contract with customer, performance obligation satisfied in previous period | $ 0 | $ 0 | $ 0 | $ 0 | |||
Accounts Receivable | Customer concentration risk | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk | 1.00% | 1.00% | |||||
Revenues | Product concentration risk | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk | 85.00% | ||||||
Revenues | Largest customer | Customer concentration risk | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk | 1.00% | 1.00% | 1.00% | 1.00% | |||
Owned equipment rentals | Revenues | Product concentration risk | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk | 73.00% | ||||||
US | Revenues | Geographic Concentration Risk | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk | 91.00% | ||||||
Topic 842 | Revenues | Product concentration risk | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk | 78.00% | ||||||
General rentals | Revenues | Product concentration risk | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk | 80.00% |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Oct. 31, 2018USD ($)employeelocationstate | Jul. 31, 2018USD ($)employeelocation | Jun. 30, 2019 | Jun. 30, 2019 | |
Business Acquisition [Line Items] | ||||
Increase in average volume of OEC (as a percent) | 23.20% | 23.40% | ||
BlueLine | ||||
Business Acquisition [Line Items] | ||||
Revenue reported by acquired entity for last annual period | $ 786,000,000 | |||
Aggregate consideration paid | $ 2,072,000,000 | |||
BakerCorp | ||||
Business Acquisition [Line Items] | ||||
Revenue reported by acquired entity for last annual period | $ 295,000,000 | |||
Aggregate consideration paid | $ 720,000,000 | |||
BakerCorp | ||||
Business Acquisition [Line Items] | ||||
Number of employees | employee | 950 | |||
BlueLine | ||||
Business Acquisition [Line Items] | ||||
Number of employees | employee | 1,700 | |||
Number of rental locations (branch) | location | 114 | |||
Number of states | state | 25 | |||
United States and Canada | BakerCorp | ||||
Business Acquisition [Line Items] | ||||
Number of rental locations (branch) | location | 46 | |||
France, Germany, United Kingdom and Netherlands | BakerCorp | ||||
Business Acquisition [Line Items] | ||||
Number of rental locations (branch) | location | 11 | |||
Line of Credit | ||||
Business Acquisition [Line Items] | ||||
Maximum borrowing capacity | $ 1,000,000,000 | |||
6 1/2 percent Senior Notes due 2026 | Senior notes | ||||
Business Acquisition [Line Items] | ||||
Stated interest rate | 6.50% | 6.50% | ||
6 1/2 percent Senior Notes due 2026 | Senior notes | BlueLine | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, face amount | $ 1,100,000,000 | |||
Stated interest rate | 6.50% |
Acquisitions (Assets Acquired a
Acquisitions (Assets Acquired and Liabilities Assumed - BakerCorp Acquisition) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jul. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 5,134 | $ 5,058 | |
BakerCorp | |||
Business Acquisition [Line Items] | |||
Accounts receivable, net of allowance for doubtful accounts | $ 74 | ||
Inventory | 5 | ||
Rental equipment | 268 | ||
Property and equipment | 25 | ||
Fair value | 171 | ||
Other assets | 4 | ||
Total identifiable assets acquired | 547 | ||
Current liabilities | (61) | ||
Deferred taxes | (13) | ||
Total liabilities assumed | (74) | ||
Net identifiable assets acquired | 473 | ||
Goodwill | 247 | ||
Net assets acquired | 720 | ||
Gross contractual amount | 81 | ||
Estimated amount uncollectible | 7 | ||
Goodwill, amount expected to be deductible for income tax purposes | $ 6 |
Acquisitions (Acquired Intangib
Acquisitions (Acquired Intangible Assets - BakerCorp Acquisition) (Details) - BakerCorp $ in Millions | 1 Months Ended |
Jul. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |
Fair value | $ 171 |
Customer relationships | |
Business Acquisition [Line Items] | |
Fair value | $ 166 |
Life (years) | 8 years |
Trade names and associated trademarks | |
Business Acquisition [Line Items] | |
Fair value | $ 5 |
Life (years) | 5 years |
Acquisitions (Assets Acquired_2
Acquisitions (Assets Acquired and Liabilities Assumed - BlueLine) (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Oct. 31, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 5,134 | $ 5,058 | |
BlueLine | |||
Business Acquisition [Line Items] | |||
Accounts receivable, net of allowance for doubtful accounts | $ 117 | ||
Inventory | 7 | ||
Rental equipment | 1,078 | ||
Property and equipment | 71 | ||
Fair value | 230 | ||
Other assets | 42 | ||
Total identifiable assets acquired | 1,545 | ||
Short-term debt and current maturities of long-term debt | (12) | ||
Current liabilities | (130) | ||
Deferred taxes | (7) | ||
Long-term debt | (25) | ||
Other long-term liabilities | (4) | ||
Total liabilities assumed | (178) | ||
Net identifiable assets acquired | 1,367 | ||
Goodwill | 705 | ||
Net assets acquired | 2,072 | ||
Gross contractual amount | 125 | ||
Estimated amount uncollectible | 8 | ||
Goodwill, amount expected to be deductible for income tax purposes | $ 25 | ||
Customer relationships | BlueLine | |||
Business Acquisition [Line Items] | |||
Life (years) | 5 years |
Acquisitions (Pro Forma Informa
Acquisitions (Pro Forma Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Revenues | $ 2,290 | $ 1,891 | $ 4,407 | $ 3,625 |
Pro forma revenues | 2,167 | 4,163 | ||
Historic/combined pretax income (loss) | 351 | 359 | 571 | 591 |
Combined pretax income | 343 | 540 | ||
Pro forma pretax income | 307 | 454 | ||
Merger related costs | $ 0 | 2 | $ 1 | 3 |
Impact of fair value mark-ups/useful life changes on depreciation | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Combined pretax income | (4) | (9) | ||
Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Combined pretax income | (3) | (8) | ||
Intangible asset amortization | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Combined pretax income | (29) | (58) | ||
Interest expense | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Combined pretax income | (33) | (66) | ||
Elimination of historic interest | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Combined pretax income | 43 | 84 | ||
Elimination of merger costs | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Combined pretax income | 3 | 3 | ||
Restructuring charge | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Combined pretax income | (13) | (32) | ||
BlueLine | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Revenues | 194 | 382 | ||
Historic/combined pretax income (loss) | (8) | (30) | ||
Merger related costs | 2 | 2 | ||
BlueLine | Impact of fair value mark-ups/useful life changes on depreciation | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | (1) | (3) | ||
BlueLine | Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | (3) | (8) | ||
BlueLine | Intangible asset amortization | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | (19) | (38) | ||
BlueLine | Interest expense | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | (27) | (54) | ||
BlueLine | Elimination of historic interest | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | 32 | 63 | ||
BlueLine | Elimination of merger costs | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | 2 | 2 | ||
BlueLine | Restructuring charge | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | (10) | (23) | ||
BakerCorp | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Revenues | 82 | 156 | ||
Historic/combined pretax income (loss) | (8) | (21) | ||
BakerCorp | Impact of fair value mark-ups/useful life changes on depreciation | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | (3) | (6) | ||
BakerCorp | Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | 0 | 0 | ||
BakerCorp | Intangible asset amortization | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | (10) | (20) | ||
BakerCorp | Interest expense | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | (6) | (12) | ||
BakerCorp | Elimination of historic interest | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | 11 | 21 | ||
BakerCorp | Elimination of merger costs | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | 1 | 1 | ||
BakerCorp | Restructuring charge | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Historic/combined pretax income (loss) | $ (3) | $ (9) |
Segment Information (Financial
Segment Information (Financial Information by Segment) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)region | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)region | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information | |||||
Revenues | $ 2,290 | $ 1,891 | $ 4,407 | $ 3,625 | |
Depreciation and amortization expense | 504 | 390 | 1,003 | 783 | |
Equipment rentals gross profit | 911 | 782 | 1,672 | 1,428 | |
Capital expenditures | 1,226 | 1,306 | |||
Assets | 19,047 | 19,047 | $ 18,133 | ||
Equipment rentals | |||||
Segment Reporting Information | |||||
Revenues | 1,960 | 1,631 | 3,755 | 3,090 | |
Sales of rental equipment | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 197 | 157 | 389 | 338 | |
Sales of new equipment | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 60 | 44 | 122 | 86 | |
Contractor supplies sales | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 27 | 24 | 51 | 42 | |
Service and other revenues | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 46 | 35 | 90 | 69 | |
Equipment rentals gross profit | |||||
Segment Reporting Information | |||||
Equipment rentals gross profit | $ 792 | 688 | $ 1,450 | 1,233 | |
General rentals | |||||
Segment Reporting Information | |||||
Number of geographic regions entity operates in (locations) | region | 11 | 11 | |||
Revenues | $ 1,818 | 1,566 | $ 3,528 | 3,019 | |
Depreciation and amortization expense | 416 | 334 | 828 | 671 | |
Capital expenditures | 1,015 | 1,153 | |||
Assets | 16,124 | 16,124 | 15,597 | ||
General rentals | Equipment rentals | |||||
Segment Reporting Information | |||||
Revenues | 1,527 | 1,332 | 2,950 | 2,533 | |
General rentals | Sales of rental equipment | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 180 | 145 | 358 | 316 | |
General rentals | Sales of new equipment | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 52 | 38 | 107 | 75 | |
General rentals | Contractor supplies sales | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 19 | 19 | 36 | 33 | |
General rentals | Service and other revenues | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 40 | 32 | 77 | 62 | |
General rentals | Equipment rentals gross profit | |||||
Segment Reporting Information | |||||
Equipment rentals gross profit | 593 | 543 | 1,094 | 969 | |
Trench, power and fluid solutions | |||||
Segment Reporting Information | |||||
Revenues | 472 | 325 | 879 | 606 | |
Depreciation and amortization expense | 88 | 56 | 175 | 112 | |
Capital expenditures | 211 | 153 | |||
Assets | 2,923 | 2,923 | $ 2,536 | ||
Trench, power and fluid solutions | Equipment rentals | |||||
Segment Reporting Information | |||||
Revenues | 433 | 299 | 805 | 557 | |
Trench, power and fluid solutions | Sales of rental equipment | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 17 | 12 | 31 | 22 | |
Trench, power and fluid solutions | Sales of new equipment | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 8 | 6 | 15 | 11 | |
Trench, power and fluid solutions | Contractor supplies sales | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 8 | 5 | 15 | 9 | |
Trench, power and fluid solutions | Service and other revenues | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 6 | 3 | 13 | 7 | |
Trench, power and fluid solutions | Equipment rentals gross profit | |||||
Segment Reporting Information | |||||
Equipment rentals gross profit | $ 199 | $ 145 | $ 356 | $ 264 |
Segment Information (Reconcilia
Segment Information (Reconciliation to Income (loss) from Continuing Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Equipment rentals gross profit | $ 911 | $ 782 | $ 1,672 | $ 1,428 |
Selling, general and administrative expenses | (271) | (239) | (551) | (471) |
Merger related costs | 0 | (2) | (1) | (3) |
Restructuring charge | (6) | (4) | (14) | (6) |
Non-rental depreciation and amortization | (105) | (67) | (209) | (138) |
Interest expense, net | (180) | (112) | (331) | (221) |
Other income, net | 2 | 1 | 5 | 2 |
Income before provision for income taxes | 351 | 359 | 571 | 591 |
Equipment rentals under operating lease | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Equipment rentals gross profit | 792 | 688 | 1,450 | 1,233 |
Other lines of business | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Equipment rentals gross profit | $ 119 | $ 94 | $ 222 | $ 195 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) $ in Millions | Jun. 30, 2019USD ($)restructuring_program |
Restructuring Cost and Reserve | |
Restructuring costs incurred to date | $ 329 |
Closed Restructuring Programs | |
Restructuring Cost and Reserve | |
Number of restructuring programs | restructuring_program | 4 |
Restructuring and related activities, number of completed restructuring programs, liability | $ 13 |
Restructuring Charges (Schedule
Restructuring Charges (Schedule of restructuring charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Charged to Costs and Expenses | $ 6 | $ 4 | $ 14 | $ 6 |
BakerCorp/BlueLine Restructuring Program | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Reserve Balance | 12 | |||
Charged to Costs and Expenses | 18 | |||
Payments and Other | (13) | |||
Ending Reserve Balance | 17 | 17 | ||
BakerCorp/BlueLine Restructuring Program | Branch closure charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Reserve Balance | 3 | |||
Charged to Costs and Expenses | 13 | |||
Payments and Other | (2) | |||
Ending Reserve Balance | 14 | 14 | ||
BakerCorp/BlueLine Restructuring Program | Severance and other | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Reserve Balance | 9 | |||
Charged to Costs and Expenses | 5 | |||
Payments and Other | (11) | |||
Ending Reserve Balance | $ 3 | $ 3 |
Fair Value Measurements (Fair v
Fair Value Measurements (Fair value of financial instruments) (Details) - Senior notes - Level 1 - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes | $ 8,005 | $ 8,102 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes | $ 8,396 | $ 7,632 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Short-term lease cost | $ 29 | $ 63 |
Product concentration risk | Revenues | ||
Lessee, Lease, Description [Line Items] | ||
Percentage of equipment rental revenue | 85.00% | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term | 1 year | 1 year |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term | 5 years | 5 years |
Leases (Summary of Financial In
Leases (Summary of Financial Information Associated with Leases) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Assets | |
Operating lease right-of-use assets | $ 619 |
Total leased assets | 800 |
Current | |
Accrued expenses and other liabilities | 170 |
Short-term debt and current maturities of long-term debt | 40 |
Long-term | |
Operating lease liabilities | 497 |
Long-term debt | 75 |
Total lease liabilities | 782 |
Rental equipment | |
Assets | |
Finance lease assets, gross | 267 |
Less accumulated depreciation and amortization | (91) |
Finance lease assets, net | 176 |
Property and equipment, net | |
Assets | |
Less accumulated depreciation and amortization | (19) |
Finance lease assets, net | 5 |
Non-rental vehicles | |
Assets | |
Finance lease assets, gross | 8 |
Buildings | |
Assets | |
Finance lease assets, gross | $ 16 |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Finance lease cost | ||
Sublease income | $ (37) | $ (72) |
Net lease cost | 66 | 139 |
Cost of equipment rentals, excluding depreciation | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 86 | 175 |
Selling, general and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 2 | 5 |
Restructuring charge | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 7 | 13 |
Depreciation of rental equipment | ||
Finance lease cost | ||
Amortization of leased assets | 7 | 14 |
Non-rental depreciation and amortization | ||
Finance lease cost | ||
Amortization of leased assets | 0 | 1 |
Interest expense, net | ||
Finance lease cost | ||
Interest on lease liabilities | $ 1 | $ 3 |
Leases (Maturity of Lease Liabi
Leases (Maturity of Lease Liabilities) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating leases | |
2019 | $ 116 |
2020 | 188 |
2021 | 156 |
2022 | 117 |
2023 | 82 |
Thereafter | 98 |
Total lease payments | 757 |
Less amount representing interest | (90) |
Present value of lease liabilities | 667 |
Finance leases | |
2019 | 22 |
2020 | 38 |
2021 | 38 |
2022 | 14 |
2023 | 3 |
Thereafter | 6 |
Total lease payments | 121 |
Less amount representing interest | (6) |
Present value of lease liabilities | $ 115 |
Leases (Lease Term and Discount
Leases (Lease Term and Discount Rate) (Details) | Jun. 30, 2019 |
Weighted-average remaining lease term (years) | |
Operating leases | 4 years 6 months |
Finance leases | 3 years 6 months |
Weighted-average discount rate | |
Operating leases | 4.90% |
Finance leases | 3.90% |
Leases (Other Information) (Det
Leases (Other Information) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 102 |
Operating cash flows from finance leases | 3 |
Financing cash flows from finance leases | 22 |
Leased assets obtained in exchange for new operating lease liabilities | 104 |
Leased assets obtained in exchange for new finance lease liabilities | $ 17 |
Debt (Schedule of long-term deb
Debt (Schedule of long-term debt instruments) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||
May 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Oct. 31, 2018 | |
Debt Instrument | |||||
Finance leases | $ 115,000,000 | ||||
Capital leases | $ 122,000,000 | ||||
Total debt | 11,695,000,000 | 11,747,000,000 | |||
Less short-term portion | (995,000,000) | (903,000,000) | |||
Total long-term debt | 10,700,000,000 | 10,844,000,000 | |||
Interest expense, debt | (32,000,000) | $ 0 | |||
Term loan facility expiring 2025 | |||||
Debt Instrument | |||||
Long-term debt | $ 984,000,000 | 988,000,000 | |||
Annual repayment rate | 1.00% | ||||
Line of Credit | |||||
Debt Instrument | |||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||
Line of Credit | $3.75 billion ABL Facility expiring 2024 | |||||
Debt Instrument | |||||
Long-term debt | $ 1,646,000,000 | 1,685,000,000 | |||
Borrowing capacity, net of letters of credit | 2,046,000,000 | ||||
Letters of credit | $ 45,000,000 | ||||
Interest rate at June 30, 2019 | 3.90% | ||||
Average month-end debt outstanding | $ 1,558,000,000 | ||||
Weighted-average interest rate on average debt outstanding | 4.00% | ||||
Maximum month-end debt outstanding | $ 1,691,000,000 | ||||
Maximum borrowing capacity | 3,750,000,000 | ||||
Senior notes | 4 5/8 percent Senior Secured Notes due 2023 | |||||
Debt Instrument | |||||
Long-term debt | $ 994,000,000 | 994,000,000 | |||
Stated interest rate | 4.625% | ||||
Senior notes | 5 3/4 percent Senior Notes due 2024 | |||||
Debt Instrument | |||||
Long-term debt | $ 0 | 842,000,000 | |||
Stated interest rate | 5.75% | ||||
Interest expense, debt | $ 32,000,000 | ||||
Senior notes | 5 1/2 percent Senior Notes due 2025 | |||||
Debt Instrument | |||||
Long-term debt | $ 794,000,000 | 794,000,000 | |||
Stated interest rate | 5.50% | ||||
Senior notes | 4 5/8 percent Senior Notes due 2025 | |||||
Debt Instrument | |||||
Long-term debt | $ 742,000,000 | 741,000,000 | |||
Stated interest rate | 4.625% | ||||
Senior notes | 5 7/8 percent Senior Notes due 2026 | |||||
Debt Instrument | |||||
Long-term debt | $ 999,000,000 | 999,000,000 | |||
Stated interest rate | 5.875% | ||||
Senior notes | 6 1/2 percent Senior Notes due 2026 | |||||
Debt Instrument | |||||
Long-term debt | $ 1,088,000,000 | 1,087,000,000 | |||
Stated interest rate | 6.50% | ||||
Senior notes | 5 1/2 percent Senior Notes due 2027 | |||||
Debt Instrument | |||||
Long-term debt | $ 992,000,000 | 991,000,000 | |||
Stated interest rate | 5.50% | ||||
Senior notes | 4 7/8 percent Senior Notes due 2028 | |||||
Debt Instrument | |||||
Long-term debt | $ 1,651,000,000 | 1,650,000,000 | |||
Stated interest rate | 4.875% | ||||
Senior notes | 4 7/8 percent Senior Notes due 2028 | |||||
Debt Instrument | |||||
Long-term debt | $ 4,000,000 | 4,000,000 | |||
Stated interest rate | 4.875% | ||||
Senior notes | 5 1/4 percent Senior Notes due 2030 | |||||
Debt Instrument | |||||
Long-term debt | $ 741,000,000 | 0 | |||
Stated interest rate | 5.25% | ||||
Debt instrument, face amount | 750,000,000 | ||||
Proceeds from debt, net of issuance costs | $ 741,000,000 | ||||
Line of Credit | Accounts Receivable Securitization Facility expiring 2020 | |||||
Debt Instrument | |||||
Long-term debt | $ 945,000,000 | $ 850,000,000 | |||
Borrowing capacity, net of letters of credit | $ 30,000,000 | ||||
Interest rate at June 30, 2019 | 3.20% | ||||
Average month-end debt outstanding | $ 898,000,000 | ||||
Weighted-average interest rate on average debt outstanding | 3.30% | ||||
Maximum month-end debt outstanding | $ 958,000,000 | ||||
Collateral amount | 1,001,000,000 | ||||
Line of Credit | Term loan facility | |||||
Debt Instrument | |||||
Borrowing capacity, net of letters of credit | $ 0 | ||||
Interest rate at June 30, 2019 | 4.20% | ||||
Average month-end debt outstanding | $ 995,000,000 | ||||
Weighted-average interest rate on average debt outstanding | 4.20% | ||||
Maximum month-end debt outstanding | $ 998,000,000 | ||||
Redemption Period One | Senior notes | 5 1/4 percent Senior Notes due 2030 | |||||
Debt Instrument | |||||
Debt instrument, redemption price, percentage | 102.625% | ||||
Redemption Period Two | Senior notes | 5 1/4 percent Senior Notes due 2030 | |||||
Debt Instrument | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Redemption Period Three | Senior notes | 5 1/4 percent Senior Notes due 2030 | |||||
Debt Instrument | |||||
Debt instrument, redemption price, percentage | 105.25% | ||||
Debt instrument, redemption price, percentage of principal amount redeemed | 40.00% | ||||
In the Event Of Change Of Control | Senior notes | 5 1/4 percent Senior Notes due 2030 | |||||
Debt Instrument | |||||
Debt instrument, redemption price, percentage | 101.00% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Line of Credit | ABL Facility | |
Debt Instrument | |
Minimum available borrowing capacity, percentage | 10.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income available to common stockholders | $ 270 | $ 270 | $ 445 | $ 453 |
Denominator: | ||||
Denominator for basic earnings per share—weighted-average common shares (in shares) | 78,264 | 83,456 | 78,829 | 83,854 |
Effect of dilutive securities: | ||||
Denominator for diluted earnings per share—adjusted weighted-average common shares (in shares) | 78,467 | 84,199 | 79,240 | 84,723 |
Basic earnings per share (in dollars per share) | $ 3.45 | $ 3.22 | $ 5.65 | $ 5.40 |
Diluted earnings per share (in dollars per share) | $ 3.44 | $ 3.20 | $ 5.62 | $ 5.34 |
Employee stock options | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 108 | 370 | 200 | 393 |
Restricted stock units | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 95 | 373 | 211 | 476 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Narrative (Details) - ABL Facility, Accounts Receivable Securitization Facility, and Other Agreements $ in Millions | Jun. 30, 2019USD ($) |
Condensed Financial Statements, Captions [Line Items] | |
Line of credit facility, restricted payment capacity | $ 2,766 |
URNA | |
Condensed Financial Statements, Captions [Line Items] | |
Line of credit facility, restricted payment capacity | $ 843 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING BALANCE SHEET (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 75 | $ 43 |
Accounts receivable, net | 1,525 | 1,545 |
Intercompany receivable (payable) | 0 | 0 |
Inventory | 135 | 109 |
Prepaid expenses and other assets | 105 | 64 |
Total current assets | 1,840 | 1,761 |
Investments in subsidiaries | 0 | 0 |
Goodwill | 5,134 | 5,058 |
Other intangible assets, net | 1,019 | 1,084 |
Operating lease right-of-use assets | 619 | |
Other long-term assets | 18 | 16 |
Total assets | 19,047 | 18,133 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Short-term debt and current maturities of long-term debt | 995 | 903 |
Accounts payable | 752 | 536 |
Accrued expenses and other liabilities | 788 | 677 |
Total current liabilities | 2,535 | 2,116 |
Long-term debt | 10,700 | 10,844 |
Deferred taxes | 1,743 | 1,687 |
Operating lease liabilities | 497 | |
Other long-term liabilities | 94 | 83 |
Total liabilities | 15,569 | 14,730 |
Total stockholders’ equity (deficit) | 3,478 | 3,403 |
Total liabilities and stockholders’ equity (deficit) | 19,047 | 18,133 |
Eliminations | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Intercompany receivable (payable) | 0 | 0 |
Inventory | 0 | 0 |
Prepaid expenses and other assets | 0 | 0 |
Total current assets | 0 | 0 |
Investments in subsidiaries | (4,139) | (4,452) |
Goodwill | 0 | 0 |
Other intangible assets, net | 0 | 0 |
Operating lease right-of-use assets | 0 | |
Other long-term assets | 0 | 0 |
Total assets | (4,139) | (4,452) |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Short-term debt and current maturities of long-term debt | 0 | 0 |
Accounts payable | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Total current liabilities | 0 | 0 |
Long-term debt | 0 | 0 |
Deferred taxes | 0 | 0 |
Operating lease liabilities | 0 | |
Other long-term liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Total stockholders’ equity (deficit) | (4,139) | (4,452) |
Total liabilities and stockholders’ equity (deficit) | (4,139) | (4,452) |
Parent | Reportable Legal Entities | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Intercompany receivable (payable) | 1,923 | 1,534 |
Inventory | 0 | 0 |
Prepaid expenses and other assets | 0 | 0 |
Total current assets | 1,923 | 1,534 |
Investments in subsidiaries | 1,507 | 1,826 |
Goodwill | 0 | 0 |
Other intangible assets, net | 0 | 0 |
Operating lease right-of-use assets | 0 | |
Other long-term assets | 10 | 9 |
Total assets | 3,499 | 3,426 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Short-term debt and current maturities of long-term debt | 0 | 1 |
Accounts payable | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Total current liabilities | 0 | 1 |
Long-term debt | 0 | 0 |
Deferred taxes | 21 | 22 |
Operating lease liabilities | 0 | |
Other long-term liabilities | 0 | 0 |
Total liabilities | 21 | 23 |
Total stockholders’ equity (deficit) | 3,478 | 3,403 |
Total liabilities and stockholders’ equity (deficit) | 3,499 | 3,426 |
URNA | Reportable Legal Entities | ||
ASSETS | ||
Cash and cash equivalents | 51 | 1 |
Accounts receivable, net | 0 | 0 |
Intercompany receivable (payable) | (1,807) | (1,423) |
Inventory | 123 | 96 |
Prepaid expenses and other assets | 87 | 60 |
Total current assets | (1,546) | (1,266) |
Investments in subsidiaries | 1,598 | 1,646 |
Goodwill | 4,749 | 4,661 |
Other intangible assets, net | 946 | 1,004 |
Operating lease right-of-use assets | 550 | |
Other long-term assets | 8 | 7 |
Total assets | 15,816 | 15,424 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Short-term debt and current maturities of long-term debt | 48 | 50 |
Accounts payable | 687 | 481 |
Accrued expenses and other liabilities | 729 | 619 |
Total current liabilities | 1,464 | 1,150 |
Long-term debt | 10,680 | 10,778 |
Deferred taxes | 1,632 | 1,587 |
Operating lease liabilities | 439 | |
Other long-term liabilities | 94 | 83 |
Total liabilities | 14,309 | 13,598 |
Total stockholders’ equity (deficit) | 1,507 | 1,826 |
Total liabilities and stockholders’ equity (deficit) | 15,816 | 15,424 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Intercompany receivable (payable) | (109) | (96) |
Inventory | 0 | 0 |
Prepaid expenses and other assets | 0 | 0 |
Total current assets | (109) | (96) |
Investments in subsidiaries | 1,034 | 980 |
Goodwill | 0 | 0 |
Other intangible assets, net | 0 | 0 |
Operating lease right-of-use assets | 0 | |
Other long-term assets | 0 | 0 |
Total assets | 974 | 924 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Short-term debt and current maturities of long-term debt | 0 | 0 |
Accounts payable | 0 | 0 |
Accrued expenses and other liabilities | 11 | 14 |
Total current liabilities | 11 | 14 |
Long-term debt | 8 | 9 |
Deferred taxes | 0 | 0 |
Operating lease liabilities | 0 | |
Other long-term liabilities | 0 | 0 |
Total liabilities | 19 | 23 |
Total stockholders’ equity (deficit) | 955 | 901 |
Total liabilities and stockholders’ equity (deficit) | 974 | 924 |
Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | ||
ASSETS | ||
Cash and cash equivalents | 24 | 42 |
Accounts receivable, net | 150 | 159 |
Intercompany receivable (payable) | (8) | (15) |
Inventory | 12 | 13 |
Prepaid expenses and other assets | 18 | 4 |
Total current assets | 196 | 203 |
Investments in subsidiaries | 0 | 0 |
Goodwill | 385 | 397 |
Other intangible assets, net | 73 | 80 |
Operating lease right-of-use assets | 69 | |
Other long-term assets | 0 | 0 |
Total assets | 1,521 | 1,425 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Short-term debt and current maturities of long-term debt | 2 | 2 |
Accounts payable | 65 | 55 |
Accrued expenses and other liabilities | 46 | 42 |
Total current liabilities | 113 | 99 |
Long-term debt | 12 | 57 |
Deferred taxes | 90 | 78 |
Operating lease liabilities | 58 | |
Other long-term liabilities | 0 | 0 |
Total liabilities | 273 | 234 |
Total stockholders’ equity (deficit) | 1,248 | 1,191 |
Total liabilities and stockholders’ equity (deficit) | 1,521 | 1,425 |
Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable, net | 1,375 | 1,386 |
Intercompany receivable (payable) | 1 | 0 |
Inventory | 0 | 0 |
Prepaid expenses and other assets | 0 | 0 |
Total current assets | 1,376 | 1,386 |
Investments in subsidiaries | 0 | 0 |
Goodwill | 0 | 0 |
Other intangible assets, net | 0 | 0 |
Operating lease right-of-use assets | 0 | |
Other long-term assets | 0 | 0 |
Total assets | 1,376 | 1,386 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Short-term debt and current maturities of long-term debt | 945 | 850 |
Accounts payable | 0 | 0 |
Accrued expenses and other liabilities | 2 | 2 |
Total current liabilities | 947 | 852 |
Long-term debt | 0 | 0 |
Deferred taxes | 0 | 0 |
Operating lease liabilities | 0 | |
Other long-term liabilities | 0 | 0 |
Total liabilities | 947 | 852 |
Total stockholders’ equity (deficit) | 429 | 534 |
Total liabilities and stockholders’ equity (deficit) | 1,376 | 1,386 |
Rental equipment, net | ||
ASSETS | ||
Property and equipment, net | 9,839 | 9,600 |
Rental equipment, net | Eliminations | ||
ASSETS | ||
Property and equipment, net | 0 | 0 |
Rental equipment, net | Parent | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | 0 | 0 |
Rental equipment, net | URNA | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | 9,091 | 8,910 |
Rental equipment, net | Guarantor Subsidiaries | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | 0 | 0 |
Rental equipment, net | Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | 748 | 690 |
Rental equipment, net | Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | 0 | 0 |
Property and equipment, net | ||
ASSETS | ||
Property and equipment, net | 578 | 614 |
Property and equipment, net | Eliminations | ||
ASSETS | ||
Property and equipment, net | 0 | 0 |
Property and equipment, net | Parent | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | 59 | 57 |
Property and equipment, net | URNA | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | 420 | 462 |
Property and equipment, net | Guarantor Subsidiaries | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | 49 | 40 |
Property and equipment, net | Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | 50 | 55 |
Property and equipment, net | Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | $ 0 | $ 0 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenues: | |||||
Revenues | $ 2,290 | $ 1,891 | $ 4,407 | $ 3,625 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 769 | 620 | 1,511 | 1,212 | |
Depreciation of rental equipment | 399 | 323 | 794 | 645 | |
Total cost of revenues | 1,379 | 1,109 | 2,735 | 2,197 | |
Gross profit | 911 | 782 | 1,672 | 1,428 | |
Selling, general and administrative expenses | 271 | 239 | 551 | 471 | |
Merger related costs | 0 | 2 | 1 | 3 | |
Restructuring charge | 6 | 4 | 14 | 6 | |
Non-rental depreciation and amortization | 105 | 67 | 209 | 138 | |
Operating income (loss) | 529 | 470 | 897 | 810 | |
Interest (income) expense, net | 180 | 112 | 331 | 221 | |
Other (income) expense, net | (2) | (1) | (5) | (2) | |
Income before provision for income taxes | 351 | 359 | 571 | 591 | |
Provision (benefit) for income taxes | 81 | 89 | 126 | 138 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | 270 | 270 | 445 | 453 | |
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Net income | 270 | 270 | 445 | 453 | |
Other comprehensive income (loss) | 22 | (20) | 43 | (45) | |
Comprehensive income (loss) | [1] | 292 | 250 | 488 | 408 |
Eliminations | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | 0 | |
Depreciation of rental equipment | 0 | 0 | 0 | 0 | |
Total cost of revenues | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | |
Merger related costs | 0 | 0 | 0 | 0 | |
Restructuring charge | 0 | 0 | 0 | 0 | |
Non-rental depreciation and amortization | 0 | 0 | 0 | 0 | |
Operating income (loss) | 0 | 0 | 0 | 0 | |
Interest (income) expense, net | 0 | 0 | 0 | (1) | |
Other (income) expense, net | 0 | 0 | 0 | 0 | |
Income before provision for income taxes | 0 | 0 | 0 | 1 | |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | 1 | |
Equity in net earnings (loss) of subsidiaries | (134) | (144) | (218) | (266) | |
Net income | (134) | (144) | (218) | (265) | |
Other comprehensive income (loss) | (65) | 131 | (126) | 204 | |
Comprehensive income (loss) | (199) | (13) | (344) | (61) | |
Parent | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | 0 | |
Depreciation of rental equipment | 0 | 0 | 0 | 0 | |
Total cost of revenues | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | (32) | (35) | 21 | 5 | |
Merger related costs | 0 | 0 | 0 | 0 | |
Restructuring charge | 0 | 0 | 0 | 0 | |
Non-rental depreciation and amortization | 6 | 4 | 10 | 8 | |
Operating income (loss) | 26 | 31 | (31) | (13) | |
Interest (income) expense, net | (17) | (8) | (33) | (15) | |
Other (income) expense, net | (187) | (156) | (359) | (297) | |
Income before provision for income taxes | 230 | 195 | 361 | 299 | |
Provision (benefit) for income taxes | 53 | 43 | 76 | 60 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | 177 | 152 | 285 | 239 | |
Equity in net earnings (loss) of subsidiaries | 93 | 118 | 160 | 214 | |
Net income | 270 | 270 | 445 | 453 | |
Other comprehensive income (loss) | 22 | (20) | 43 | (45) | |
Comprehensive income (loss) | 292 | 250 | 488 | 408 | |
URNA | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 2,095 | 1,740 | 4,020 | 3,333 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 692 | 561 | 1,349 | 1,096 | |
Depreciation of rental equipment | 367 | 298 | 731 | 595 | |
Total cost of revenues | 1,249 | 1,008 | 2,466 | 1,998 | |
Gross profit | 846 | 732 | 1,554 | 1,335 | |
Selling, general and administrative expenses | 259 | 242 | 442 | 407 | |
Merger related costs | 0 | 2 | 1 | 3 | |
Restructuring charge | 6 | 4 | 15 | 6 | |
Non-rental depreciation and amortization | 91 | 58 | 182 | 120 | |
Operating income (loss) | 490 | 426 | 914 | 799 | |
Interest (income) expense, net | 189 | 115 | 348 | 227 | |
Other (income) expense, net | 213 | 172 | 410 | 333 | |
Income before provision for income taxes | 88 | 139 | 156 | 239 | |
Provision (benefit) for income taxes | 26 | 40 | 42 | 64 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | 62 | 99 | 114 | 175 | |
Equity in net earnings (loss) of subsidiaries | 31 | 19 | 46 | 39 | |
Net income | 93 | 118 | 160 | 214 | |
Other comprehensive income (loss) | 22 | (20) | 43 | (45) | |
Comprehensive income (loss) | 115 | 98 | 203 | 169 | |
Guarantor Subsidiaries | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | 0 | |
Depreciation of rental equipment | 0 | 0 | 0 | 0 | |
Total cost of revenues | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | |
Merger related costs | 0 | 0 | 0 | 0 | |
Restructuring charge | 0 | 0 | 0 | 0 | |
Non-rental depreciation and amortization | 0 | 0 | 0 | 0 | |
Operating income (loss) | 0 | 0 | 0 | 0 | |
Interest (income) expense, net | 0 | 0 | 0 | 1 | |
Other (income) expense, net | 0 | 0 | 0 | 0 | |
Income before provision for income taxes | 0 | 0 | 0 | (1) | |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | (1) | |
Equity in net earnings (loss) of subsidiaries | 10 | 7 | 12 | 13 | |
Net income | 10 | 7 | 12 | 12 | |
Other comprehensive income (loss) | 21 | (21) | 42 | (46) | |
Comprehensive income (loss) | 31 | (14) | 54 | (34) | |
Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 194 | 151 | 386 | 292 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 76 | 59 | 161 | 116 | |
Depreciation of rental equipment | 32 | 25 | 63 | 50 | |
Total cost of revenues | 129 | 101 | 268 | 199 | |
Gross profit | 65 | 50 | 118 | 93 | |
Selling, general and administrative expenses | 32 | 23 | 59 | 42 | |
Merger related costs | 0 | 0 | 0 | 0 | |
Restructuring charge | 0 | 0 | (1) | 0 | |
Non-rental depreciation and amortization | 8 | 5 | 17 | 10 | |
Operating income (loss) | 25 | 22 | 43 | 41 | |
Interest (income) expense, net | 0 | 0 | 0 | (1) | |
Other (income) expense, net | 15 | 13 | 29 | 24 | |
Income before provision for income taxes | 10 | 9 | 14 | 18 | |
Provision (benefit) for income taxes | (3) | 2 | (2) | 5 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | 13 | 7 | 16 | 13 | |
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Net income | 13 | 7 | 16 | 13 | |
Other comprehensive income (loss) | 22 | (90) | 41 | (113) | |
Comprehensive income (loss) | 35 | (83) | 57 | (100) | |
Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 1 | 0 | 1 | 0 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 1 | 0 | 1 | 0 | |
Depreciation of rental equipment | 0 | 0 | 0 | 0 | |
Total cost of revenues | 1 | 0 | 1 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 12 | 9 | 29 | ||
Merger related costs | 0 | 0 | 0 | ||
Restructuring charge | 0 | 0 | 0 | ||
Non-rental depreciation and amortization | 0 | 0 | 0 | ||
Operating income (loss) | (12) | (9) | (29) | ||
Interest (income) expense, net | 8 | 5 | 16 | ||
Other (income) expense, net | (43) | (30) | (85) | ||
Income before provision for income taxes | 23 | 16 | 40 | ||
Provision (benefit) for income taxes | 5 | 4 | 10 | ||
Income (loss) before equity in net earnings (loss) of subsidiaries | 18 | 12 | 30 | ||
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | ||
Net income | 18 | 12 | 30 | ||
Other comprehensive income (loss) | 0 | 0 | 0 | ||
Comprehensive income (loss) | 18 | 12 | 30 | ||
Equipment rentals | |||||
Revenues: | |||||
Revenues | 1,960 | 1,631 | 3,755 | 3,090 | |
Equipment rentals | Eliminations | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Equipment rentals | Parent | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Equipment rentals | URNA | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 1,798 | 1,507 | 3,436 | 2,853 | |
Equipment rentals | Guarantor Subsidiaries | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Equipment rentals | Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 161 | 124 | 318 | 237 | |
Equipment rentals | Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 1 | 0 | 1 | 0 | |
Sales of rental equipment | |||||
Revenues: | |||||
Revenue from contract with customer | 197 | 157 | 389 | 338 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 116 | 92 | 241 | 199 | |
Sales of rental equipment | Eliminations | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Sales of rental equipment | Parent | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Sales of rental equipment | URNA | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 181 | 143 | 354 | 307 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 108 | 85 | 221 | 183 | |
Sales of rental equipment | Guarantor Subsidiaries | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Sales of rental equipment | Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 16 | 14 | 35 | 31 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 8 | 7 | 20 | 16 | |
Sales of rental equipment | Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Sales of new equipment | |||||
Revenues: | |||||
Revenue from contract with customer | 60 | 44 | 122 | 86 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 51 | 38 | 105 | 75 | |
Sales of new equipment | Eliminations | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Sales of new equipment | Parent | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Sales of new equipment | URNA | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 53 | 40 | 106 | 77 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 45 | 34 | 91 | 67 | |
Sales of new equipment | Guarantor Subsidiaries | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Sales of new equipment | Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 7 | 4 | 16 | 9 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 6 | 4 | 14 | 8 | |
Sales of new equipment | Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Contractor supplies sales | |||||
Revenues: | |||||
Revenue from contract with customer | 27 | 24 | 51 | 42 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 19 | 16 | 36 | 28 | |
Contractor supplies sales | Eliminations | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Contractor supplies sales | Parent | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Contractor supplies sales | URNA | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 24 | 21 | 46 | 36 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 17 | 14 | 33 | 24 | |
Contractor supplies sales | Guarantor Subsidiaries | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Contractor supplies sales | Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 3 | 3 | 5 | 6 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 2 | 2 | 3 | 4 | |
Contractor supplies sales | Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Service and other revenues | |||||
Revenues: | |||||
Revenue from contract with customer | 46 | 35 | 90 | 69 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 25 | 20 | 48 | 38 | |
Service and other revenues | Eliminations | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Service and other revenues | Parent | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Service and other revenues | URNA | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 39 | 29 | 78 | 60 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 20 | 16 | 41 | 33 | |
Service and other revenues | Guarantor Subsidiaries | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | |
Service and other revenues | Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 7 | 6 | 12 | 9 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 5 | 4 | 7 | 5 | |
Service and other revenues | Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | |||||
Revenues: | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | $ 0 | $ 0 | $ 0 | 0 | |
Selling, general and administrative expenses | 17 | ||||
Merger related costs | 0 | ||||
Restructuring charge | 0 | ||||
Non-rental depreciation and amortization | 0 | ||||
Operating income (loss) | (17) | ||||
Interest (income) expense, net | 10 | ||||
Other (income) expense, net | (62) | ||||
Income before provision for income taxes | 35 | ||||
Provision (benefit) for income taxes | 9 | ||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 26 | ||||
Equity in net earnings (loss) of subsidiaries | 0 | ||||
Net income | 26 | ||||
Other comprehensive income (loss) | 0 | ||||
Comprehensive income (loss) | $ 26 | ||||
[1] | There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive income (loss) during 2019 or 2018 . T here is no tax impact related to the foreign currency translation adjustments, as the earnings are considered permanently reinvested. We have historically considered the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested. We have not repatriated funds to the U.S. to satisfy domestic liquidity needs, nor do we anticipate the need to do so. If we determine that all or a portion of our foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. There were no material taxes associated with other comprehensive income (loss) during 2019 or 2018 . |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | $ 1,590 | $ 1,649 |
Net cash used in investing activities | (1,006) | (1,005) |
Net cash used in financing activities | (552) | (870) |
Effect of foreign exchange rates | 0 | (9) |
Net increase (decrease) in cash and cash equivalents | 32 | (235) |
Cash and cash equivalents at beginning of period | 43 | 352 |
Cash and cash equivalents at end of period | 75 | 117 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Net cash used in financing activities | 0 | 0 |
Effect of foreign exchange rates | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Parent | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 9 | 12 |
Net cash used in investing activities | (9) | (12) |
Net cash used in financing activities | 0 | 0 |
Effect of foreign exchange rates | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
URNA | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 1,457 | 1,714 |
Net cash used in investing activities | (943) | (920) |
Net cash used in financing activities | (464) | (773) |
Effect of foreign exchange rates | 0 | |
Net increase (decrease) in cash and cash equivalents | 50 | 21 |
Cash and cash equivalents at beginning of period | 1 | 23 |
Cash and cash equivalents at end of period | 51 | 44 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 0 | (1) |
Net cash used in investing activities | 0 | 0 |
Net cash used in financing activities | 0 | 1 |
Effect of foreign exchange rates | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 83 | (66) |
Net cash used in investing activities | (54) | (73) |
Net cash used in financing activities | (47) | (108) |
Effect of foreign exchange rates | (9) | |
Net increase (decrease) in cash and cash equivalents | (18) | (256) |
Cash and cash equivalents at beginning of period | 42 | 329 |
Cash and cash equivalents at end of period | 24 | 73 |
Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 41 | (10) |
Net cash used in investing activities | 0 | 0 |
Net cash used in financing activities | (41) | 10 |
Effect of foreign exchange rates | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 |