Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 26, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
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, $.01 par value, of United Rentals, Inc. | |
Trading Symbol | URI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 72,136,631 | |
Entity Central Index Key | 0001067701 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 174 | $ 52 |
Accounts receivable, net of allowance for doubtful accounts of $114 at September 30, 2020 and $103 at December 31, 2019 | 1,324 | 1,530 |
Inventory | 108 | 120 |
Prepaid expenses and other assets | 122 | 140 |
Total current assets | 1,728 | 1,842 |
Goodwill | 5,147 | 5,154 |
Other intangible assets, net | 701 | 895 |
Operating lease right-of-use assets | 663 | 669 |
Other long-term assets | 30 | 19 |
Total assets | 17,908 | 18,970 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Short-term debt and current maturities of long-term debt | 700 | 997 |
Accounts payable | 541 | 454 |
Accrued expenses and other liabilities | 675 | 747 |
Total current liabilities | 1,916 | 2,198 |
Long-term debt | 9,351 | 10,431 |
Deferred taxes | 1,818 | 1,887 |
Operating lease liabilities | 524 | 533 |
Other long-term liabilities | 138 | 91 |
Total liabilities | 13,747 | 15,140 |
Common stock—$0.01 par value, 500,000,000 shares authorized, 114,145,755 and 72,132,246 shares issued and outstanding, respectively, at September 30, 2020 and 113,825,667 and 74,362,195 shares issued and outstanding, respectively, at December 31, 2019 | 1 | 1 |
Additional paid-in capital | 2,463 | 2,440 |
Retained earnings | 5,868 | 5,275 |
Treasury stock at cost—42,013,509 and 39,463,472 shares at September 30, 2020 and December 31, 2019, respectively | (3,957) | (3,700) |
Accumulated other comprehensive loss | (214) | (186) |
Total stockholders’ equity | 4,161 | 3,830 |
Total liabilities and stockholders’ equity (deficit) | 17,908 | 18,970 |
Rental equipment, net | ||
ASSETS | ||
Property and equipment, net | 9,041 | 9,787 |
Property and equipment, net | ||
ASSETS | ||
Property and equipment, net | $ 598 | $ 604 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Allowance for doubtful accounts | $ 114 | $ 103 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
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) | 114,145,755 | 113,825,667 |
Common stock, shares outstanding (in shares) | 72,132,246 | 74,362,195 |
Treasury stock, shares (in shares) | 42,013,509 | 39,463,472 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Revenues | $ 2,187 | $ 2,488 | $ 6,251 | $ 6,895 |
Cost of revenues: | ||||
Cost of equipment rentals, excluding depreciation | 689 | 813 | 2,083 | 2,324 |
Depreciation of rental equipment | 395 | 417 | 1,216 | 1,211 |
Total cost of revenues | 1,301 | 1,455 | 3,937 | 4,190 |
Gross profit | 886 | 1,033 | 2,314 | 2,705 |
Selling, general and administrative expenses | 232 | 273 | 721 | 824 |
Merger related costs | 0 | 0 | 0 | 1 |
Restructuring charge | 6 | 2 | 11 | 16 |
Non-rental depreciation and amortization | 97 | 102 | 292 | 311 |
Operating income (loss) | 551 | 656 | 1,290 | 1,553 |
Interest expense, net | 278 | 147 | 544 | 478 |
Other income, net | (2) | (1) | (6) | (6) |
Income before provision for income taxes | 275 | 510 | 752 | 1,081 |
Provision for income taxes | 67 | 119 | 159 | 245 |
Net income | $ 208 | $ 391 | $ 593 | $ 836 |
Basic earnings per share (in dollars per share) | $ 2.88 | $ 5.10 | $ 8.14 | $ 10.70 |
Diluted earnings per share (in dollars per share) | $ 2.87 | $ 5.08 | $ 8.12 | $ 10.66 |
Equipment rentals | ||||
Revenues: | ||||
Revenues | $ 1,861 | $ 2,147 | $ 5,286 | $ 5,902 |
Sales of rental equipment | ||||
Revenues: | ||||
Revenue from contract with customer | 199 | 198 | 583 | 587 |
Cost of revenues: | ||||
Cost of goods and services sold | 123 | 122 | 353 | 363 |
Sales of new equipment | ||||
Revenues: | ||||
Revenue from contract with customer | 54 | 67 | 169 | 189 |
Cost of revenues: | ||||
Cost of goods and services sold | 47 | 58 | 147 | 163 |
Contractor supplies sales | ||||
Revenues: | ||||
Revenue from contract with customer | 25 | 27 | 73 | 78 |
Cost of revenues: | ||||
Cost of goods and services sold | 18 | 18 | 52 | 54 |
Service and other revenues | ||||
Revenues: | ||||
Revenue from contract with customer | 48 | 49 | 140 | 139 |
Cost of revenues: | ||||
Cost of goods and services sold | $ 29 | $ 27 | $ 86 | $ 75 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||
Statement of Comprehensive Income [Abstract] | |||||||
Net income | $ 208 | $ 391 | $ 593 | $ 836 | |||
Other comprehensive income (loss), net of tax: | |||||||
Foreign currency translation adjustments | [1] | 32 | (23) | (26) | 19 | ||
Fixed price diesel swaps | 1 | 0 | (2) | [1] | 1 | [1] | |
Other comprehensive income (loss) | 33 | (23) | (28) | 20 | |||
Comprehensive income (loss) | [1] | $ 241 | $ 368 | $ 565 | $ 856 | ||
[1] | There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive income (loss) during 2020 or 2019. 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 2020 or 2019. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Reclassification from AOCI, current period, net of tax, attributable to parent | $ 0 | $ 0 | $ 0 | $ 0 |
Other comprehensive income (loss), foreign currency translation adjustment, tax, portion attributable to parent | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), tax, portion attributable to parent | $ 0 | $ 0 | $ 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, 2018 | 80 | [1] | 33 | |||||||
Balance at Dec. 31, 2018 | $ 1 | $ 2,408 | $ 4,101 | $ (2,870) | $ (237) | [2] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | $ 836 | 836 | ||||||||
Foreign currency translation adjustments | 19 | [3] | 19 | [2] | ||||||
Fixed price diesel swaps | 1 | [3] | 1 | [2] | ||||||
Stock compensation expense, net (in shares) | [1] | 1 | ||||||||
Stock compensation expense, net | 45 | |||||||||
Exercise of common stock options | 10 | |||||||||
Shares repurchased and retired | (34) | |||||||||
Repurchase of common stock (in shares) | (5) | [1] | (5) | |||||||
Repurchase of common stock | $ (630) | |||||||||
Balance (in shares) at Sep. 30, 2019 | 76 | [1] | 38 | |||||||
Balance at Sep. 30, 2019 | $ 1 | 2,429 | 4,937 | $ (3,500) | (217) | [2] | ||||
Balance (in shares) at Jun. 30, 2019 | 77 | [1] | 36 | |||||||
Balance at Jun. 30, 2019 | $ 1 | 2,415 | 4,546 | $ (3,290) | (194) | [2] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 391 | 391 | ||||||||
Foreign currency translation adjustments | (23) | [3] | (23) | [2] | ||||||
Fixed price diesel swaps | 0 | |||||||||
Stock compensation expense, net (in shares) | [1] | 1 | ||||||||
Stock compensation expense, net | 14 | |||||||||
Repurchase of common stock (in shares) | (2) | [1] | (2) | |||||||
Repurchase of common stock | $ (210) | |||||||||
Balance (in shares) at Sep. 30, 2019 | 76 | [1] | 38 | |||||||
Balance at Sep. 30, 2019 | $ 1 | 2,429 | 4,937 | $ (3,500) | (217) | [2] | ||||
Balance (in shares) at Dec. 31, 2019 | 74 | [1] | 39 | |||||||
Balance at Dec. 31, 2019 | 3,830 | $ 1 | 2,440 | 5,275 | $ (3,700) | (186) | [2] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 593 | 593 | ||||||||
Foreign currency translation adjustments | (26) | [3] | (26) | [2] | ||||||
Fixed price diesel swaps | (2) | [3] | (2) | [2] | ||||||
Stock compensation expense, net (in shares) | [1] | 1 | ||||||||
Stock compensation expense, net | 46 | |||||||||
Exercise of common stock options | 1 | |||||||||
Shares repurchased and retired | (24) | |||||||||
Repurchase of common stock (in shares) | (3) | [1] | (3) | |||||||
Repurchase of common stock | $ (257) | |||||||||
Balance (in shares) at Sep. 30, 2020 | 72 | [1] | 42 | |||||||
Balance at Sep. 30, 2020 | 4,161 | $ 1 | 2,463 | 5,868 | $ (3,957) | (214) | [2] | |||
Balance (in shares) at Jun. 30, 2020 | 72 | [1] | 42 | |||||||
Balance at Jun. 30, 2020 | $ 1 | 2,450 | 5,660 | $ (3,957) | (247) | [2] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 208 | 208 | ||||||||
Foreign currency translation adjustments | 32 | [3] | 32 | [2] | ||||||
Fixed price diesel swaps | 1 | 1 | ||||||||
Stock compensation expense, net | 18 | |||||||||
Shares repurchased and retired | (5) | |||||||||
Balance (in shares) at Sep. 30, 2020 | 72 | [1] | 42 | |||||||
Balance at Sep. 30, 2020 | $ 4,161 | $ 1 | $ 2,463 | $ 5,868 | $ (3,957) | $ (214) | [2] | |||
[1] | Common stock outstanding decreased by approximately 6 million net shares during the year ended December 31, 2019. | |||||||||
[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 2020 or 2019. 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 2020 or 2019. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) shares in Millions | 12 Months Ended |
Dec. 31, 2019shares | |
Common Stock | |
Change in common stock outstanding (in shares, approximately) | (6) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows From Operating Activities: | ||
Net income | $ 593 | $ 836 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,508 | 1,522 |
Amortization of deferred financing costs and original issue discounts | 11 | 11 |
Gain on sales of rental equipment | (230) | (224) |
Gain on sales of non-rental equipment | (5) | (3) |
Insurance proceeds from damaged equipment | (34) | (18) |
Stock compensation expense, net | 46 | 45 |
Merger related costs | 0 | 1 |
Restructuring charge | 11 | 16 |
Loss on repurchase/redemption of debt securities and amendment of ABL facility | 159 | 32 |
(Decrease) increase in deferred taxes | (66) | 117 |
Changes in operating assets and liabilities, net of amounts acquired: | ||
Decrease (increase) in accounts receivable | 202 | (30) |
Decrease (increase) in inventory | 12 | (17) |
Decrease (increase) in prepaid expenses and other assets | 30 | (21) |
Increase in accounts payable | 88 | 301 |
(Decrease) increase in accrued expenses and other liabilities | (37) | 14 |
Net cash provided by operating activities | 2,288 | 2,582 |
Cash Flows From Investing Activities: | ||
Purchases of rental equipment | (785) | (1,974) |
Purchases of non-rental equipment | (145) | (157) |
Proceeds from sales of rental equipment | 583 | 587 |
Proceeds from sales of non-rental equipment | 31 | 26 |
Insurance proceeds from damaged equipment | 34 | 18 |
Purchases of other companies, net of cash acquired | (2) | (247) |
Purchases of investments | (2) | (2) |
Net cash used in investing activities | (286) | (1,749) |
Cash Flows From Financing Activities: | ||
Proceeds from debt | 7,251 | 6,125 |
Payments of debt | (8,829) | (6,269) |
Proceeds from the exercise of common stock options | 1 | 10 |
Common stock repurchased | (281) | (664) |
Payments of financing costs | (23) | (18) |
Net cash used in financing activities | (1,881) | (816) |
Effect of foreign exchange rates | 1 | 0 |
Net increase in cash and cash equivalents | 122 | 17 |
Cash and cash equivalents at beginning of period | 52 | 43 |
Cash and cash equivalents at end of period | 174 | 60 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net | 239 | 96 |
Cash paid for interest | $ 438 | $ 480 |
Organization, Description of Bu
Organization, Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
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 July 2018, we completed the acquisition of BakerCorp International Holdings, Inc. (“BakerCorp”), which allowed for our entry into select European markets. 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, 2019 (the “2019 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 2019 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. COVID-19 The novel coronavirus (“COVID-19”) was first identified in people in late 2019. COVID-19 spread rapidly throughout the world and, in March 2020, the World Health Organization characterized COVID-19 as a pandemic. COVID-19 is a pandemic of respiratory disease spreading from person-to-person that poses a serious public health risk. It has significantly disrupted supply chains and businesses around the world. The extent and duration of the COVID-19 impact, on the operations and financial position of United Rentals and on the global economy, is uncertain. While visibility into future economic conditions remains limited, based on increased insight into near-term indicators, we reintroduced full-year 2020 guidance in July 2020, after having withdrawn it in April 2020. In October 2020, after reporting third quarter results, we raised our full-year 2020 guidance. The health and safety of our employees and customers remains our top priority, and we have also engaged in extensive contingency planning to manage the business impact of the pandemic. Prior to mid-March 2020, our results were largely in line with expectations. We began to experience a decline in revenues in March 2020, when rental volume declined in response to shelter-in-place orders and other market restrictions. COVID-19 is discussed in more detail throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” New Accounting Pronouncements Simplifying the Test for Goodwill Impairment . In January 2017, the Financial Accounting Standards Board ("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. We will adopt this guidance for the goodwill impairment test that we will conduct as of October 1, 2020, and do not expect the adoption of the guidance to have a significant impact on our financial statements. Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued guidance intended to simplify the accounting for income taxes. The guidance removes the following exceptions: 1) exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, 2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, 3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary and 4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Additionally, the guidance simplifies the accounting for income taxes by: 1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, 2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction, 3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements (although the entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority), 4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date and 5) making minor improvements for income tax accounting related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2020. Different components of the guidance require retrospective, modified retrospective or prospective adoption, and early adoption is permitted. We will adopt this guidance when it becomes effective, in the first quarter of 2021, and the impact on our financial statements is not expected to be material. Guidance Adopted in 2020 Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued guidance that requires companies to present certain financial assets net of the amount expected to be collected. Trade receivables (as noted below, excluding receivables arising from operating lease revenues) are the only material financial asset we have that is impacted by this guidance. 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. This guidance does not apply to receivables arising from operating lease revenues. 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 nine months ended September 30, 2020). We adopted this guidance in the first quarter of 2020, and the impact of adoption on our financial statements was not material. See note 2 (see "Receivables and contract assets and liabilities") for further discussion of our receivables. Facilitation of the Effects of Reference Rate Reform on Financial Reporting . In March 2020, the FASB issued guidance that provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. We adopted this guidance in 2020, and the impact of adoption on our financial statements was not material. The expedients and exceptions in this guidance are optional, and we are evaluating the potential future financial statement impact of any such expedient or exception that we may elect to apply. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Recognition Accounting Standards We recognize revenue in accordance with two different accounting standards: 1) Topic 606 (which addresses revenue from contracts with customers) and 2) Topic 842 (which addresses lease revenue). 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 September 30, 2020 2019 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Revenues: Owned equipment rentals $ 1,572 $ — $ 1,572 $ 1,831 $ — $ 1,831 Re-rent revenue 41 — 41 41 — 41 Ancillary and other rental revenues: Delivery and pick-up — 138 138 — 156 156 Other 84 26 110 95 24 119 Total ancillary and other rental revenues 84 164 248 95 180 275 Total equipment rentals 1,697 164 1,861 1,967 180 2,147 Sales of rental equipment — 199 199 — 198 198 Sales of new equipment — 54 54 — 67 67 Contractor supplies sales — 25 25 — 27 27 Service and other revenues — 48 48 — 49 49 Total revenues $ 1,697 $ 490 $ 2,187 $ 1,967 $ 521 $ 2,488 Nine Months Ended September 30, 2020 2019 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Revenues: Owned equipment rentals $ 4,498 $ — $ 4,498 $ 5,029 $ — $ 5,029 Re-rent revenue 104 — 104 113 — 113 Ancillary and other rental revenues: Delivery and pick-up — 370 370 — 418 418 Other 243 71 314 262 80 342 Total ancillary and other rental revenues 243 441 684 262 498 760 Total equipment rentals 4,845 441 5,286 5,404 498 5,902 Sales of rental equipment — 583 583 — 587 587 Sales of new equipment — 169 169 — 189 189 Contractor supplies sales — 73 73 — 78 78 Service and other revenues — 140 140 — 139 139 Total revenues $ 4,845 $ 1,406 $ 6,251 $ 5,404 $ 1,491 $ 6,895 Revenues by reportable segment and geographical market are presented in notes 3 and 10 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 nine months ended September 30, 2020, 78 percent and 92 percent, 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 3 and 10, 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 72 percent of total revenues for the nine months ended September 30, 2020) 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 and Topic 606) of $57 and $55 as of September 30, 2020 and December 31, 2019, 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 probable. 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 nine months ended September 30, 2020). 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. 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 nine months ended September 30, 2020, and for each of the last three full years. Our customer with the largest receivable balance represented approximately one percent of total receivables at September 30, 2020 and December 31, 2019. 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 and, as applicable, current conditions and reasonable and supportable forecasts that affect collectibility. 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. See the table below for a rollforward of our allowance for doubtful accounts. In the first quarter of 2020, we adopted accounting guidance that requires companies to present certain financial assets net of the amount expected to be collected. This 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. Our allowance for doubtful accounts as of September 30, 2020 included an adjustment for the estimated impact of COVID-19 on future collectibility that was not material to our financial statements. Trade receivables are the only material financial asset we have that is impacted by this guidance, which does not apply to receivables arising from operating lease revenues. Substantially all of our non-lease trade receivables are due in one year or less. As discussed above, most of our equipment rental revenue is accounted for as lease revenue (such revenue represented 78 percent of our total revenues for the nine months ended September 30, 2020, and these revenues account for corresponding portions of the $1.324 billion of net accounts receivable and the associated allowance for doubtful accounts of $114 reported on our condensed consolidated balance sheet as of September 30, 2020). During the three and nine months ended September 30, 2020, we recognized total bad debt expenses for our non-lease trade receivables, within selling, general and administrative expenses on our condensed consolidated statement of income, of $2 and $8, respectively, associated with our allowance for doubtful accounts. Adoption of this guidance did not materially impact 1) net accounts receivable or the associated allowance for doubtful accounts as reported on our condensed consolidated balance sheet as of September 30, 2020 or 2) total bad debt expenses recognized associated with our allowance for doubtful accounts for the three and nine months ended September 30, 2020. As discussed above, most of our equipment rental revenue is accounted for under Topic 842. 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. The rollforward of our allowance for doubtful accounts (in total, and associated with revenues arising from both Topic 606 and Topic 842) is shown below. Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Beginning balance $ 108 $ 107 $ 103 $ 93 Acquired — — — 1 Charged to costs and expenses (1) 2 1 8 6 Charged to revenue (2) 12 5 22 27 Deductions (3) (8) (10) (19) (24) Ending balance $ 114 $ 103 $ 114 $ 103 _________________ (1) Reflects bad debt expenses recognized within selling, general and administrative expenses (associated with Topic 606 revenues). (2) Primarily reflects doubtful accounts associated with lease revenues that were recognized as a reduction to equipment rentals revenue (primarily associated with Topic 842 revenues). (3) Represents write-offs of accounts, net of immaterial recoveries. We do not 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 not recognize material revenue during the three and nine months ended September 30, 2020 or 2019 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 nine months ended September 30, 2020 and 2019 were not material. We also do not expect to recognize material revenue in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of September 30, 2020. 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 in 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. Our revenues accounted for under Topic 842 also generally do not require significant estimates or judgments. We monitor and review our estimated standalone selling prices on a regular basis. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments are i) general rentals and ii) trench, power and fluid solutions. Our regions discussed below, which are our operating segments, are aggregated into our reportable segments. We believe that the regions that are aggregated into our reportable segments have similar economic characteristics, as each region is capital intensive, offers similar products to similar customers, uses similar methods to distribute its products, and is subject to similar competitive risks. The aggregation of our regions also reflects the management structure that we use for making operating decisions and assessing performance. We evaluate segment performance primarily based on segment equipment rentals gross profit. 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. The following tables set forth financial information by segment. General Trench, power and fluid solutions Total Three Months Ended September 30, 2020 Equipment rentals $ 1,391 $ 470 $ 1,861 Sales of rental equipment 182 17 199 Sales of new equipment 47 7 54 Contractor supplies sales 17 8 25 Service and other revenues 42 6 48 Total revenue 1,679 508 2,187 Depreciation and amortization expense 402 90 492 Equipment rentals gross profit 543 234 777 Three Months Ended September 30, 2019 Equipment rentals $ 1,642 $ 505 $ 2,147 Sales of rental equipment 183 15 198 Sales of new equipment 60 7 67 Contractor supplies sales 17 10 27 Service and other revenues 42 7 49 Total revenue 1,944 544 2,488 Depreciation and amortization expense 426 93 519 Equipment rentals gross profit 671 246 917 Nine Months Ended September 30, 2020 Equipment rentals $ 4,040 $ 1,246 $ 5,286 Sales of rental equipment 530 53 583 Sales of new equipment 145 24 169 Contractor supplies sales 48 25 73 Service and other revenues 122 18 140 Total revenue 4,885 1,366 6,251 Depreciation and amortization expense 1,240 268 1,508 Equipment rentals gross profit 1,410 577 1,987 Capital expenditures 771 159 930 Nine Months Ended September 30, 2019 Equipment rentals $ 4,592 $ 1,310 $ 5,902 Sales of rental equipment 541 46 587 Sales of new equipment 167 22 189 Contractor supplies sales 53 25 78 Service and other revenues 119 20 139 Total revenue 5,472 1,423 6,895 Depreciation and amortization expense 1,254 268 1,522 Equipment rentals gross profit 1,765 602 2,367 Capital expenditures 1,800 331 2,131 September 30, December 31, Total reportable segment assets General rentals $ 15,039 $ 16,036 Trench, power and fluid solutions 2,869 2,934 Total assets $ 17,908 $ 18,970 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Total equipment rentals gross profit $ 777 $ 917 $ 1,987 $ 2,367 Gross profit from other lines of business 109 116 327 338 Selling, general and administrative expenses (232) (273) (721) (824) Merger related costs — — — (1) Restructuring charge (6) (2) (11) (16) Non-rental depreciation and amortization (97) (102) (292) (311) Interest expense, net (278) (147) (544) (478) Other income, net 2 1 6 6 Income before provision for income taxes $ 275 $ 510 $ 752 $ 1,081 |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment 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 program was initiated in 2008, we have completed five restructuring programs and have incurred total restructuring charges of $344. 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 September 30, 2020, the total liability associated with the closed restructuring programs was $15. 2020-2021 Cost Savings Restructuring Program In the fourth quarter of 2019, we initiated a restructuring program associated with the consolidation of certain common functions, the relocation of our shared-service facilities and certain other cost reduction measures. We expect to complete the restructuring program in the first half of 2021. 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. As of September 30, 2020, we have not recognized material costs under this program, and the liability balance associated with the program is not material. Asset Impairment Charges In addition to the restructuring charges discussed above, during the three and nine months ended September 30, 2020, we recorded asset impairment charges of $10 and $36, respectively, primarily in our general rentals segment. The asset impairment charges, which were not related to COVID-19, are primarily reflected in depreciation of rental equipment in our condensed consolidated statements of income and principally relate to the discontinuation of certain equipment programs. There were no material asset impairment charges during the three and nine months ended September 30, 2019. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of September 30, 2020 and December 31, 2019, 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 leases approximated their book values as of September 30, 2020 and December 31, 2019. The estimated fair values of our other financial instruments, all of which are categorized in Level 1 of the fair value hierarchy, as of September 30, 2020 and December 31, 2019 have been calculated based upon available market information, and were as follows: September 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Senior notes $ 7,705 $ 8,113 $ 7,755 $ 8,176 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt, net of unamortized original issue discounts or premiums, and unamortized debt issuance costs, consists of the following: September 30, 2020 December 31, 2019 Accounts Receivable Securitization Facility expiring 2021 (1) (2) $ 634 $ 929 $3.75 billion ABL Facility expiring 2024 (1) (3) 598 1,638 Term loan facility expiring 2025 (1) 973 979 5 1 / 2 percent Senior Notes due 2025 (4) — 795 4 5 / 8 percent Senior Notes due 2025 (5) 743 742 5 7 / 8 percent Senior Notes due 2026 999 999 6 1 / 2 percent Senior Notes due 2026 (6) — 1,089 5 1 / 2 percent Senior Notes due 2027 993 992 3 7 / 8 percent Senior Secured Notes due 2027 742 741 4 7 / 8 percent Senior Notes due 2028 (7) 1,654 1,652 4 7 / 8 percent Senior Notes due 2028 (7) 4 4 5 1 / 4 percent Senior Notes due 2030 742 741 4 percent Senior Notes due 2030 (8) 741 — 3 7 / 8 percent Senior Notes due 2031 (9) 1,087 — Finance leases 141 127 Total debt 10,051 11,428 Less short-term portion (10) (700) (997) Total long-term debt $ 9,351 $ 10,431 ___________________ (1) The table below presents financial information associated with our variable rate indebtedness as of and for the nine months ended September 30, 2020. 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 $ 3,091 $ 165 $ — Letters of credit 52 Interest rate at September 30, 2020 1.4 % 1.5 % 1.9 % Average month-end debt outstanding 730 671 984 Weighted-average interest rate on average debt outstanding 2.1 % 1.9 % 2.4 % Maximum month-end debt outstanding 1,494 811 988 (2) 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 September 30, 2020, there were $873 of receivables, net of applicable reserves and other deductions, in the collateral pool. In April 2020, we amended the accounts receivable securitization facility to adjust, on a temporary basis, the financial tests relating to: (i) the default ratio, (ii) the delinquency ratio, (iii) the dilution ratio and (iv) days sales outstanding. The adjustments to these tests were intended to make compliance with such tests more likely for the calendar months ending April 30, 2020 and May 31, 2020, and we were in compliance with such tests for these months. In June 2020, the accounts receivable securitization facility was further amended to (a) extend the maturity date, which may be further extended on a 364-day basis by mutual agreement with the purchasers under the facility, to June 25, 2021, (b) reduce the size of the facility from $975 to $800 and (c) adjust, for the calendar months ending on or after June 30, 2020, the financial tests (including the method of calculation) relating to (i) the default ratio, (ii) the delinquency ratio, (iii) the dilution ratio and (iv) days sales outstanding. (3) The decrease in the outstanding debt under the ABL facility since December 31, 2019 primarily reflects the use of proceeds from operations to reduce borrowings under the ABL facility. (4) At the time of the offering of the 4 percent Senior Notes due 2030 (the “4 percent Notes”) discussed below, we indicated our expectation that we would re-borrow an amount equal to the net proceeds from the offering, along with additional borrowings under the ABL facility, to redeem URNA's 5 1 / 2 percent Senior Notes due 2025 on or after July 15, 2020. Prior to redeeming the 5 1 / 2 percent Senior Notes due 2025, we considered the impact of COVID-19 on liquidity, and assessed our available sources and anticipated uses of cash, including, with respect to sources, cash generated from operations and from the sale of rental equipment. In August 2020, URNA redeemed all of its 5 1 / 2 percent Senior Notes due 2025. Upon redemption, we recognized a loss of $27 in interest expense, net, reflecting the difference between the net carrying amount and the total purchase price of the redeemed notes. (5) In October 2020, URNA redeemed all of its 4 5 / 8 percent Senior Notes due 2025, using borrowings available under our ABL facility. Upon redemption, we recognized a loss of $24 in interest expense, net, reflecting the difference between the net carrying amount and the total purchase price of the redeemed notes. (6) In August 2020, URNA redeemed all of its 6 1 / 2 percent Senior Notes. Upon redemption, we recognized a loss of $132 in interest expense, net, reflecting the difference between the net carrying amount and the total purchase price of the redeemed notes. (7) 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. (8) In February 2020, URNA issued $750 aggregate principal amount of 4 percent Notes which are due July 15, 2030. The net proceeds from the issuance were approximately $741 (after deducting offering expenses). The 4 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 4 percent Notes may be redeemed on or after July 15, 2025, at specified redemption prices that range from 102.000 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 July 15, 2023, up to 40 percent of the aggregate principal amount of the 4 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 104.000 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 4 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens and (ii) mergers and consolidations, 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 requirements to provide subsidiary guarantees and to make an offer to repurchase the notes upon the occurrence of a change of control will not apply to URNA and its restricted subsidiaries during any period when the 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 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. (9) In August 2020, URNA issued $1.100 billion aggregate principal amount of 3 7 / 8 percent Senior Notes (the “3 7 / 8 percent Notes”) which are due February 15, 2031. The net proceeds from the issuance were approximately $1.087 billion (after deducting offering expenses). The 3 7 / 8 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 3 7 / 8 percent Notes may be redeemed on or after August 15, 2025, at specified redemption prices that range from 101.938 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 August 15, 2023, up to 40 percent of the aggregate principal amount of the 3 7 / 8 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 103.875 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 3 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens and (ii) mergers and consolidations, 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 requirements to provide subsidiary guarantees and to make an offer to repurchase the notes upon the occurrence of a change of control will not apply to URNA and its restricted subsidiaries during any period when the 3 7 / 8 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 3 7 / 8 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. (10) As of September 30, 2020, our short-term debt primarily reflects $634 of borrowings under our accounts receivable securitization facility. Loan Covenants and Compliance As of September 30, 2020, 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. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases As discussed in note 2 to the condensed consolidated financial statements, most of our equipment rental revenue is accounted for as lease revenue under Topic 842 (such lease revenue represented 78 percent of our total revenues for the nine months ended September 30, 2020). 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). 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 right-of-use ("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 this re-rent revenue, 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 use the practical expedient that allows us to 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 as of September 30, 2020 and December 31, 2019, and for the three and nine months ended September 30, 2020 and 2019. Classification September 30, 2020 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 663 $ 669 Finance lease assets Rental equipment 297 286 Less accumulated depreciation (87) (89) Rental equipment, net 210 197 Property and equipment, net: Non-rental vehicles 8 8 Buildings 19 18 Less accumulated depreciation and amortization (11) (15) Property and equipment, net 16 11 Total leased assets 889 877 Liabilities Current Operating Accrued expenses and other liabilities 178 178 Finance Short-term debt and current maturities of long-term debt 56 58 Long-term Operating Operating lease liabilities 524 533 Finance Long-term debt 85 69 Total lease liabilities $ 843 $ 838 Lease cost Classification Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Operating lease cost (1) Cost of equipment rentals, excluding depreciation (1) $ 95 $ 95 $ 273 $ 270 Selling, general and administrative expenses 2 3 8 8 Restructuring charge 1 1 3 14 Finance lease cost Amortization of leased assets Depreciation of rental equipment 8 7 23 21 Non-rental depreciation and amortization — 1 1 2 Interest on lease liabilities Interest expense, net 3 2 9 5 Sublease income (2) (41) (42) (105) (114) Net lease cost $ 68 $ 67 $ 212 $ 206 _________________ (1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation includes $32 and $40 for the three months ended, September 30, 2020 and 2019, respectively, and $90 and $103 for the nine months ended September 30, 2020 and 2019, 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 September 30, 2020) Operating leases (1) Finance leases (2) 2020 $ 53 $ 15 2021 201 65 2022 168 36 2023 134 25 2024 100 4 Thereafter 145 5 Total 801 150 Less amount representing interest (99) (9) Present value of lease liabilities $ 702 $ 141 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of September 30, 2020. 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 September 30, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating leases 4.8 4.8 Finance leases 2.9 3.2 Weighted-average discount rate Operating leases 4.4 % 4.7 % Finance leases 3.6 % 4.0 % Other information Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 156 $ 151 Operating cash flows from finance leases 9 5 Financing cash flows from finance leases 39 35 Leased assets obtained in exchange for new operating lease liabilities 135 147 Leased assets obtained in exchange for new finance lease liabilities $ 54 $ 36 |
Leases | Leases As discussed in note 2 to the condensed consolidated financial statements, most of our equipment rental revenue is accounted for as lease revenue under Topic 842 (such lease revenue represented 78 percent of our total revenues for the nine months ended September 30, 2020). 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). 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 right-of-use ("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 this re-rent revenue, 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 use the practical expedient that allows us to 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 as of September 30, 2020 and December 31, 2019, and for the three and nine months ended September 30, 2020 and 2019. Classification September 30, 2020 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 663 $ 669 Finance lease assets Rental equipment 297 286 Less accumulated depreciation (87) (89) Rental equipment, net 210 197 Property and equipment, net: Non-rental vehicles 8 8 Buildings 19 18 Less accumulated depreciation and amortization (11) (15) Property and equipment, net 16 11 Total leased assets 889 877 Liabilities Current Operating Accrued expenses and other liabilities 178 178 Finance Short-term debt and current maturities of long-term debt 56 58 Long-term Operating Operating lease liabilities 524 533 Finance Long-term debt 85 69 Total lease liabilities $ 843 $ 838 Lease cost Classification Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Operating lease cost (1) Cost of equipment rentals, excluding depreciation (1) $ 95 $ 95 $ 273 $ 270 Selling, general and administrative expenses 2 3 8 8 Restructuring charge 1 1 3 14 Finance lease cost Amortization of leased assets Depreciation of rental equipment 8 7 23 21 Non-rental depreciation and amortization — 1 1 2 Interest on lease liabilities Interest expense, net 3 2 9 5 Sublease income (2) (41) (42) (105) (114) Net lease cost $ 68 $ 67 $ 212 $ 206 _________________ (1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation includes $32 and $40 for the three months ended, September 30, 2020 and 2019, respectively, and $90 and $103 for the nine months ended September 30, 2020 and 2019, 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 September 30, 2020) Operating leases (1) Finance leases (2) 2020 $ 53 $ 15 2021 201 65 2022 168 36 2023 134 25 2024 100 4 Thereafter 145 5 Total 801 150 Less amount representing interest (99) (9) Present value of lease liabilities $ 702 $ 141 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of September 30, 2020. 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 September 30, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating leases 4.8 4.8 Finance leases 2.9 3.2 Weighted-average discount rate Operating leases 4.4 % 4.7 % Finance leases 3.6 % 4.0 % Other information Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 156 $ 151 Operating cash flows from finance leases 9 5 Financing cash flows from finance leases 39 35 Leased assets obtained in exchange for new operating lease liabilities 135 147 Leased assets obtained in exchange for new finance lease liabilities $ 54 $ 36 |
Legal and Regulatory Matters
Legal and Regulatory Matters | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal and Regulatory Matters | Legal and Regulatory MattersWe 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 | 9 Months Ended |
Sep. 30, 2020 | |
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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net income available to common stockholders $ 208 $ 391 593 836 Denominator: Denominator for basic earnings per share—weighted-average common shares 72,190 76,699 72,795 78,111 Effect of dilutive securities: Employee stock options 9 30 12 144 Restricted stock units 243 128 193 186 Denominator for diluted earnings per share—adjusted weighted-average common shares 72,442 76,857 73,000 78,441 Basic earnings per share $ 2.88 $ 5.10 $ 8.14 $ 10.70 Diluted earnings per share $ 2.87 $ 5.08 $ 8.12 $ 10.66 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information of Guarantor Subsidiaries | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020, the amount available for distribution under the most restrictive of these covenants was $915. The Company’s total available capacity for making share repurchases and dividend payments includes the intercompany receivable balance of Parent. As of September 30, 2020, 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 $3.774 billion. The condensed consolidating financial information of Parent and its subsidiaries is as follows: CONDENSED CONSOLIDATING BALANCE SHEET September 30, 2020 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV ASSETS Cash and cash equivalents $ — $ 26 $ — $ 148 $ — $ — $ 174 Accounts receivable, net — — — 140 1,184 — 1,324 Intercompany receivable (payable) 2,859 (2,774) (89) 3 1 — — Inventory — 97 — 11 — — 108 Prepaid expenses and other assets — 121 — 1 — — 122 Total current assets 2,859 (2,530) (89) 303 1,185 — 1,728 Rental equipment, net — 8,312 — 729 — — 9,041 Property and equipment, net 104 393 55 46 — — 598 Investments in subsidiaries 1,206 1,776 1,076 — — (4,058) — Goodwill — 4,757 — 390 — — 5,147 Other intangible assets, net — 655 — 46 — — 701 Operating lease right-of-use assets — 183 413 67 — — 663 Other long-term assets 13 16 — 1 — — 30 Total assets $ 4,182 $ 13,562 $ 1,455 $ 1,582 $ 1,185 $ (4,058) $ 17,908 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ — $ 63 $ — $ 3 $ 634 $ — $ 700 Accounts payable — 483 — 58 — — 541 Accrued expenses and other liabilities — 502 124 49 — — 675 Total current liabilities — 1,048 124 110 634 — 1,916 Long-term debt — 9,332 6 13 — — 9,351 Deferred taxes 21 1,697 — 100 — — 1,818 Operating lease liabilities — 141 328 55 — — 524 Other long-term liabilities — 138 — — — — 138 Total liabilities 21 12,356 458 278 634 — 13,747 Total stockholders’ equity (deficit) 4,161 1,206 997 1,304 551 (4,058) 4,161 Total liabilities and stockholders’ equity (deficit) $ 4,182 $ 13,562 $ 1,455 $ 1,582 $ 1,185 $ (4,058) $ 17,908 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2019 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV ASSETS Cash and cash equivalents $ — $ 28 $ — $ 24 $ — $ — $ 52 Accounts receivable, net — — — 171 1,359 — 1,530 Intercompany receivable (payable) 2,255 (2,130) (112) (14) 1 — — Inventory — 108 — 12 — — 120 Prepaid expenses and other assets — 124 — 16 — — 140 Total current assets 2,255 (1,870) (112) 209 1,360 — 1,842 Rental equipment, net — 8,995 — 792 — — 9,787 Property and equipment, net 76 400 78 50 — — 604 Investments in subsidiaries 1,509 1,636 1,069 — — (4,214) — Goodwill — 4,759 — 395 — — 5,154 Other intangible assets, net — 833 — 62 — — 895 Operating lease right-of-use assets — 194 403 72 — — 669 Other long-term assets 12 7 — — — — 19 Total assets $ 3,852 $ 14,954 $ 1,438 $ 1,580 $ 1,360 $ (4,214) $ 18,970 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ — $ 66 $ — $ 2 $ 929 $ — $ 997 Accounts payable — 395 — 59 — — 454 Accrued expenses and other liabilities — 572 118 55 2 — 747 Total current liabilities — 1,033 118 116 931 — 2,198 Long-term debt — 10,402 7 22 — — 10,431 Deferred taxes 22 1,768 — 97 — — 1,887 Operating lease liabilities — 151 323 59 — — 533 Other long-term liabilities — 91 — — — — 91 Total liabilities 22 13,445 448 294 931 — 15,140 Total stockholders’ equity (deficit) 3,830 1,509 990 1,286 429 (4,214) 3,830 Total liabilities and stockholders’ equity (deficit) $ 3,852 $ 14,954 $ 1,438 $ 1,580 $ 1,360 $ (4,214) $ 18,970 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2020 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 1,705 $ — $ 156 $ — $ — $ 1,861 Sales of rental equipment — 181 — 18 — — 199 Sales of new equipment — 47 — 7 — — 54 Contractor supplies sales — 22 — 3 — — 25 Service and other revenues — 42 — 6 — — 48 Total revenues — 1,997 — 190 — — 2,187 Cost of revenues: Cost of equipment rentals, excluding depreciation — 641 — 48 — — 689 Depreciation of rental equipment — 363 — 32 — — 395 Cost of rental equipment sales — 114 — 9 — — 123 Cost of new equipment sales — 41 — 6 — — 47 Cost of contractor supplies sales — 16 — 2 — — 18 Cost of service and other revenues — 25 — 4 — — 29 Total cost of revenues — 1,200 — 101 — — 1,301 Gross profit — 797 — 89 — — 886 Selling, general and administrative expenses (9) 205 — 23 11 2 232 Restructuring charge — 6 — — — — 6 Non-rental depreciation and amortization 9 81 — 7 — — 97 Operating income (loss) — 505 — 59 (11) (2) 551 Interest (income) expense, net (10) 285 — — 3 — 278 Other (income) expense, net (178) 205 — 13 (40) (2) (2) Income before provision (benefit) for income taxes 188 15 — 46 26 — 275 Provision (benefit) for income taxes 51 (4) — 13 7 — 67 Income before equity in net earnings (loss) of subsidiaries 137 19 — 33 19 — 208 Equity in net earnings (loss) of subsidiaries 71 52 30 — — (153) — Net income (loss) 208 71 30 33 19 (153) 208 Other comprehensive income (loss) 33 33 23 33 — (89) 33 Comprehensive income (loss) $ 241 $ 104 $ 53 $ 66 $ 19 $ (242) $ 241 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2019 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 1,971 $ — $ 176 $ — $ — $ 2,147 Sales of rental equipment — 181 — 17 — — 198 Sales of new equipment — 60 — 7 — — 67 Contractor supplies sales — 24 — 3 — — 27 Service and other revenues — 46 — 3 — — 49 Total revenues — 2,282 — 206 — — 2,488 Cost of revenues: Cost of equipment rentals, excluding depreciation — 737 — 76 — — 813 Depreciation of rental equipment — 378 — 39 — — 417 Cost of rental equipment sales — 113 — 9 — — 122 Cost of new equipment sales — 52 — 6 — — 58 Cost of contractor supplies sales — 16 — 2 — — 18 Cost of service and other revenues — 26 — 1 — — 27 Total cost of revenues — 1,322 — 133 — — 1,455 Gross profit — 960 — 73 — — 1,033 Selling, general and administrative expenses (7) 251 — 25 4 — 273 Restructuring charge — 2 — — — — 2 Non-rental depreciation and amortization 4 89 — 9 — — 102 Operating income (loss) 3 618 — 39 (4) — 656 Interest (income) expense, net (18) 158 — — 7 — 147 Other (income) expense, net (201) 230 — 15 (45) — (1) Income before provision for income taxes 222 230 — 24 34 — 510 Provision for income taxes 56 48 — 6 9 — 119 Income before equity in net earnings (loss) of subsidiaries 166 182 — 18 25 — 391 Equity in net earnings (loss) of subsidiaries 225 43 12 — — (280) — Net income (loss) 391 225 12 18 25 (280) 391 Other comprehensive (loss) income (23) (23) (12) (21) — 56 (23) Comprehensive income (loss) $ 368 $ 202 $ — $ (3) $ 25 $ (224) $ 368 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2020 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 4,856 $ — $ 429 $ 1 $ — $ 5,286 Sales of rental equipment — 531 — 52 — — 583 Sales of new equipment — 148 — 21 — — 169 Contractor supplies sales — 64 — 9 — — 73 Service and other revenues — 125 — 15 — — 140 Total revenues — 5,724 — 526 1 — 6,251 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,907 — 175 1 — 2,083 Depreciation of rental equipment — 1,119 — 97 — — 1,216 Cost of rental equipment sales — 327 — 26 — — 353 Cost of new equipment sales — 129 — 18 — — 147 Cost of contractor supplies sales — 46 — 6 — — 52 Cost of service and other revenues — 77 — 9 — — 86 Total cost of revenues — 3,605 — 331 1 — 3,937 Gross profit — 2,119 — 195 — — 2,314 Selling, general and administrative expenses (3) 620 — 73 34 (3) 721 Restructuring charge — 11 — — — — 11 Non-rental depreciation and amortization 20 249 — 23 — — 292 Operating (loss) income (17) 1,239 — 99 (34) 3 1,290 Interest (income) expense, net (37) 570 — — 11 — 544 Other (income) expense, net (508) 581 — 39 (121) 3 (6) Income before provision (benefit) for income taxes 528 88 — 60 76 — 752 Provision (benefit) for income taxes 131 (7) — 16 19 — 159 Income before equity in net earnings (loss) of subsidiaries 397 95 — 44 57 — 593 Equity in net earnings (loss) of subsidiaries 196 101 39 — — (336) — Net income (loss) 593 196 39 44 57 (336) 593 Other comprehensive (loss) income (28) (28) (32) (26) — 86 (28) Comprehensive income (loss) $ 565 $ 168 $ 7 $ 18 $ 57 $ (250) $ 565 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2019 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 5,407 $ — $ 494 $ 1 $ — $ 5,902 Sales of rental equipment — 535 — 52 — — 587 Sales of new equipment — 166 — 23 — — 189 Contractor supplies sales — 70 — 8 — — 78 Service and other revenues — 124 — 15 — — 139 Total revenues — 6,302 — 592 1 — 6,895 Cost of revenues: Cost of equipment rentals, excluding depreciation — 2,086 — 237 1 — 2,324 Depreciation of rental equipment — 1,109 — 102 — — 1,211 Cost of rental equipment sales — 334 — 29 — — 363 Cost of new equipment sales — 143 — 20 — — 163 Cost of contractor supplies sales — 49 — 5 — — 54 Cost of service and other revenues — 67 — 8 — — 75 Total cost of revenues — 3,788 — 401 1 — 4,190 Gross profit — 2,514 — 191 — — 2,705 Selling, general and administrative expenses 14 693 — 84 33 — 824 Merger related costs — 1 — — — — 1 Restructuring charge — 17 — (1) — — 16 Non-rental depreciation and amortization 14 271 — 26 — — 311 Operating (loss) income (28) 1,532 — 82 (33) — 1,553 Interest (income) expense, net (51) 506 — — 23 — 478 Other (income) expense, net (560) 640 — 44 (130) — (6) Income before provision for income taxes 583 386 — 38 74 — 1,081 Provision for income taxes 132 90 — 4 19 — 245 Income before equity in net earnings (loss) of subsidiaries 451 296 — 34 55 — 836 Equity in net earnings (loss) of subsidiaries 385 89 24 — — (498) — Net income (loss) 836 385 24 34 55 (498) 836 Other comprehensive income (loss) 20 20 30 20 — (70) 20 Comprehensive income (loss) $ 856 $ 405 $ 54 $ 54 $ 55 $ (568) $ 856 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Nine Months Ended September 30, 2020 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV Net cash provided by operating activities $ 41 $ 1,871 $ — $ 146 $ 230 $ — $ 2,288 Net cash used in investing activities (41) (235) — (10) — — (286) Net cash used in financing activities — (1,638) — (13) (230) — (1,881) Effect of foreign exchange rates — — — 1 — — 1 Net (decrease) increase in cash and cash equivalents — (2) — 124 — — 122 Cash and cash equivalents at beginning of period — 28 — 24 — — 52 Cash and cash equivalents at end of period $ — $ 26 $ — $ 148 $ — $ — $ 174 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Nine Months Ended September 30, 2019 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV Net cash provided by operating activities $ 21 $ 2,403 $ — $ 151 $ 7 $ — $ 2,582 Net cash used in investing activities (21) (1,592) — (136) — — (1,749) Net cash used in financing activities — (777) — (32) (7) — (816) Effect of foreign exchange rates — — — — — — — Net increase (decrease) in cash and cash equivalents — 34 — (17) — — 17 Cash and cash equivalents at beginning of period — 1 — 42 — — 43 Cash and cash equivalents at end of period $ — $ 35 $ — $ 25 $ — $ — $ 60 |
Organization, Description of _2
Organization, Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | Simplifying the Test for Goodwill Impairment . In January 2017, the Financial Accounting Standards Board ("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. We will adopt this guidance for the goodwill impairment test that we will conduct as of October 1, 2020, and do not expect the adoption of the guidance to have a significant impact on our financial statements. Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued guidance intended to simplify the accounting for income taxes. The guidance removes the following exceptions: 1) exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, 2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, 3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary and 4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Additionally, the guidance simplifies the accounting for income taxes by: 1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, 2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction, 3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements (although the entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority), 4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date and 5) making minor improvements for income tax accounting related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2020. Different components of the guidance require retrospective, modified retrospective or prospective adoption, and early adoption is permitted. We will adopt this guidance when it becomes effective, in the first quarter of 2021, and the impact on our financial statements is not expected to be material. Guidance Adopted in 2020 Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued guidance that requires companies to present certain financial assets net of the amount expected to be collected. Trade receivables (as noted below, excluding receivables arising from operating lease revenues) are the only material financial asset we have that is impacted by this guidance. 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. This guidance does not apply to receivables arising from operating lease revenues. 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 nine months ended September 30, 2020). We adopted this guidance in the first quarter of 2020, and the impact of adoption on our financial statements was not material. See note 2 (see "Receivables and contract assets and liabilities") for further discussion of our receivables. Facilitation of the Effects of Reference Rate Reform on Financial Reporting . In March 2020, the FASB issued guidance that provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. We adopted this guidance in 2020, and the impact of adoption on our financial statements was not material. The expedients and exceptions in this guidance are optional, and we are evaluating the potential future financial statement impact of any such expedient or exception that we may elect to apply. |
Lease revenues (Topic 842) | 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 72 percent of total revenues for the nine months ended September 30, 2020) 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 and Topic 606) of $57 and $55 as of September 30, 2020 and December 31, 2019, 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) | 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 probable. 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 nine months ended September 30, 2020). 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. 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 nine months ended September 30, 2020, and for each of the last three full years. Our customer with the largest receivable balance represented approximately one percent of total receivables at September 30, 2020 and December 31, 2019. 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 and, as applicable, current conditions and reasonable and supportable forecasts that affect collectibility. 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. See the table below for a rollforward of our allowance for doubtful accounts. In the first quarter of 2020, we adopted accounting guidance that requires companies to present certain financial assets net of the amount expected to be collected. This 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. Our allowance for doubtful accounts as of September 30, 2020 included an adjustment for the estimated impact of COVID-19 on future collectibility that was not material to our financial statements. Trade receivables are the only material financial asset we have that is impacted by this guidance, which does not apply to receivables arising from operating lease revenues. Substantially all of our non-lease trade receivables are due in one year or less. As discussed above, most of our equipment rental revenue is accounted for as lease revenue (such revenue represented 78 percent of our total revenues for the nine months ended September 30, 2020, and these revenues account for corresponding portions of the $1.324 billion of net accounts receivable and the associated allowance for doubtful accounts of $114 reported on our condensed consolidated balance sheet as of September 30, 2020). During the three and nine months ended September 30, 2020, we recognized total bad debt expenses for our non-lease trade receivables, within selling, general and administrative expenses on our condensed consolidated statement of income, of $2 and $8, respectively, associated with our allowance for doubtful accounts. Adoption of this guidance did not materially impact 1) net accounts receivable or the associated allowance for doubtful accounts as reported on our condensed consolidated balance sheet as of September 30, 2020 or 2) total bad debt expenses recognized associated with our allowance for doubtful accounts for the three and nine months ended September 30, 2020. As discussed above, most of our equipment rental revenue is accounted for under Topic 842. 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. The rollforward of our allowance for doubtful accounts (in total, and associated with revenues arising from both Topic 606 and Topic 842) is shown below. Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Beginning balance $ 108 $ 107 $ 103 $ 93 Acquired — — — 1 Charged to costs and expenses (1) 2 1 8 6 Charged to revenue (2) 12 5 22 27 Deductions (3) (8) (10) (19) (24) Ending balance $ 114 $ 103 $ 114 $ 103 _________________ (1) Reflects bad debt expenses recognized within selling, general and administrative expenses (associated with Topic 606 revenues). (2) Primarily reflects doubtful accounts associated with lease revenues that were recognized as a reduction to equipment rentals revenue (primarily associated with Topic 842 revenues). (3) Represents write-offs of accounts, net of immaterial recoveries. We do not 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 not recognize material revenue during the three and nine months ended September 30, 2020 or 2019 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 nine months ended September 30, 2020 and 2019 were not material. We also do not expect to recognize material revenue in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of September 30, 2020. 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 in 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. Our revenues accounted for under Topic 842 also generally do not require significant estimates or judgments. We monitor and review our estimated standalone selling prices on a regular basis. |
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 right-of-use ("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 this re-rent revenue, 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 use the practical expedient that allows us to 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) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 2019 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Revenues: Owned equipment rentals $ 1,572 $ — $ 1,572 $ 1,831 $ — $ 1,831 Re-rent revenue 41 — 41 41 — 41 Ancillary and other rental revenues: Delivery and pick-up — 138 138 — 156 156 Other 84 26 110 95 24 119 Total ancillary and other rental revenues 84 164 248 95 180 275 Total equipment rentals 1,697 164 1,861 1,967 180 2,147 Sales of rental equipment — 199 199 — 198 198 Sales of new equipment — 54 54 — 67 67 Contractor supplies sales — 25 25 — 27 27 Service and other revenues — 48 48 — 49 49 Total revenues $ 1,697 $ 490 $ 2,187 $ 1,967 $ 521 $ 2,488 Nine Months Ended September 30, 2020 2019 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Revenues: Owned equipment rentals $ 4,498 $ — $ 4,498 $ 5,029 $ — $ 5,029 Re-rent revenue 104 — 104 113 — 113 Ancillary and other rental revenues: Delivery and pick-up — 370 370 — 418 418 Other 243 71 314 262 80 342 Total ancillary and other rental revenues 243 441 684 262 498 760 Total equipment rentals 4,845 441 5,286 5,404 498 5,902 Sales of rental equipment — 583 583 — 587 587 Sales of new equipment — 169 169 — 189 189 Contractor supplies sales — 73 73 — 78 78 Service and other revenues — 140 140 — 139 139 Total revenues $ 4,845 $ 1,406 $ 6,251 $ 5,404 $ 1,491 $ 6,895 |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure | The rollforward of our allowance for doubtful accounts (in total, and associated with revenues arising from both Topic 606 and Topic 842) is shown below. Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Beginning balance $ 108 $ 107 $ 103 $ 93 Acquired — — — 1 Charged to costs and expenses (1) 2 1 8 6 Charged to revenue (2) 12 5 22 27 Deductions (3) (8) (10) (19) (24) Ending balance $ 114 $ 103 $ 114 $ 103 _________________ (1) Reflects bad debt expenses recognized within selling, general and administrative expenses (associated with Topic 606 revenues). (2) Primarily reflects doubtful accounts associated with lease revenues that were recognized as a reduction to equipment rentals revenue (primarily associated with Topic 842 revenues). (3) Represents write-offs of accounts, net of immaterial recoveries. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Financial information by segment | The following tables set forth financial information by segment. General Trench, power and fluid solutions Total Three Months Ended September 30, 2020 Equipment rentals $ 1,391 $ 470 $ 1,861 Sales of rental equipment 182 17 199 Sales of new equipment 47 7 54 Contractor supplies sales 17 8 25 Service and other revenues 42 6 48 Total revenue 1,679 508 2,187 Depreciation and amortization expense 402 90 492 Equipment rentals gross profit 543 234 777 Three Months Ended September 30, 2019 Equipment rentals $ 1,642 $ 505 $ 2,147 Sales of rental equipment 183 15 198 Sales of new equipment 60 7 67 Contractor supplies sales 17 10 27 Service and other revenues 42 7 49 Total revenue 1,944 544 2,488 Depreciation and amortization expense 426 93 519 Equipment rentals gross profit 671 246 917 Nine Months Ended September 30, 2020 Equipment rentals $ 4,040 $ 1,246 $ 5,286 Sales of rental equipment 530 53 583 Sales of new equipment 145 24 169 Contractor supplies sales 48 25 73 Service and other revenues 122 18 140 Total revenue 4,885 1,366 6,251 Depreciation and amortization expense 1,240 268 1,508 Equipment rentals gross profit 1,410 577 1,987 Capital expenditures 771 159 930 Nine Months Ended September 30, 2019 Equipment rentals $ 4,592 $ 1,310 $ 5,902 Sales of rental equipment 541 46 587 Sales of new equipment 167 22 189 Contractor supplies sales 53 25 78 Service and other revenues 119 20 139 Total revenue 5,472 1,423 6,895 Depreciation and amortization expense 1,254 268 1,522 Equipment rentals gross profit 1,765 602 2,367 Capital expenditures 1,800 331 2,131 September 30, December 31, Total reportable segment assets General rentals $ 15,039 $ 16,036 Trench, power and fluid solutions 2,869 2,934 Total assets $ 17,908 $ 18,970 |
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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Total equipment rentals gross profit $ 777 $ 917 $ 1,987 $ 2,367 Gross profit from other lines of business 109 116 327 338 Selling, general and administrative expenses (232) (273) (721) (824) Merger related costs — — — (1) Restructuring charge (6) (2) (11) (16) Non-rental depreciation and amortization (97) (102) (292) (311) Interest expense, net (278) (147) (544) (478) Other income, net 2 1 6 6 Income before provision for income taxes $ 275 $ 510 $ 752 $ 1,081 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | The estimated fair values of our other financial instruments, all of which are categorized in Level 1 of the fair value hierarchy, as of September 30, 2020 and December 31, 2019 have been calculated based upon available market information, and were as follows: September 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Senior notes $ 7,705 $ 8,113 $ 7,755 $ 8,176 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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: September 30, 2020 December 31, 2019 Accounts Receivable Securitization Facility expiring 2021 (1) (2) $ 634 $ 929 $3.75 billion ABL Facility expiring 2024 (1) (3) 598 1,638 Term loan facility expiring 2025 (1) 973 979 5 1 / 2 percent Senior Notes due 2025 (4) — 795 4 5 / 8 percent Senior Notes due 2025 (5) 743 742 5 7 / 8 percent Senior Notes due 2026 999 999 6 1 / 2 percent Senior Notes due 2026 (6) — 1,089 5 1 / 2 percent Senior Notes due 2027 993 992 3 7 / 8 percent Senior Secured Notes due 2027 742 741 4 7 / 8 percent Senior Notes due 2028 (7) 1,654 1,652 4 7 / 8 percent Senior Notes due 2028 (7) 4 4 5 1 / 4 percent Senior Notes due 2030 742 741 4 percent Senior Notes due 2030 (8) 741 — 3 7 / 8 percent Senior Notes due 2031 (9) 1,087 — Finance leases 141 127 Total debt 10,051 11,428 Less short-term portion (10) (700) (997) Total long-term debt $ 9,351 $ 10,431 ___________________ (1) The table below presents financial information associated with our variable rate indebtedness as of and for the nine months ended September 30, 2020. 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 $ 3,091 $ 165 $ — Letters of credit 52 Interest rate at September 30, 2020 1.4 % 1.5 % 1.9 % Average month-end debt outstanding 730 671 984 Weighted-average interest rate on average debt outstanding 2.1 % 1.9 % 2.4 % Maximum month-end debt outstanding 1,494 811 988 (2) 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 September 30, 2020, there were $873 of receivables, net of applicable reserves and other deductions, in the collateral pool. In April 2020, we amended the accounts receivable securitization facility to adjust, on a temporary basis, the financial tests relating to: (i) the default ratio, (ii) the delinquency ratio, (iii) the dilution ratio and (iv) days sales outstanding. The adjustments to these tests were intended to make compliance with such tests more likely for the calendar months ending April 30, 2020 and May 31, 2020, and we were in compliance with such tests for these months. In June 2020, the accounts receivable securitization facility was further amended to (a) extend the maturity date, which may be further extended on a 364-day basis by mutual agreement with the purchasers under the facility, to June 25, 2021, (b) reduce the size of the facility from $975 to $800 and (c) adjust, for the calendar months ending on or after June 30, 2020, the financial tests (including the method of calculation) relating to (i) the default ratio, (ii) the delinquency ratio, (iii) the dilution ratio and (iv) days sales outstanding. (3) The decrease in the outstanding debt under the ABL facility since December 31, 2019 primarily reflects the use of proceeds from operations to reduce borrowings under the ABL facility. (4) At the time of the offering of the 4 percent Senior Notes due 2030 (the “4 percent Notes”) discussed below, we indicated our expectation that we would re-borrow an amount equal to the net proceeds from the offering, along with additional borrowings under the ABL facility, to redeem URNA's 5 1 / 2 percent Senior Notes due 2025 on or after July 15, 2020. Prior to redeeming the 5 1 / 2 percent Senior Notes due 2025, we considered the impact of COVID-19 on liquidity, and assessed our available sources and anticipated uses of cash, including, with respect to sources, cash generated from operations and from the sale of rental equipment. In August 2020, URNA redeemed all of its 5 1 / 2 percent Senior Notes due 2025. Upon redemption, we recognized a loss of $27 in interest expense, net, reflecting the difference between the net carrying amount and the total purchase price of the redeemed notes. (5) In October 2020, URNA redeemed all of its 4 5 / 8 percent Senior Notes due 2025, using borrowings available under our ABL facility. Upon redemption, we recognized a loss of $24 in interest expense, net, reflecting the difference between the net carrying amount and the total purchase price of the redeemed notes. (6) In August 2020, URNA redeemed all of its 6 1 / 2 percent Senior Notes. Upon redemption, we recognized a loss of $132 in interest expense, net, reflecting the difference between the net carrying amount and the total purchase price of the redeemed notes. (7) 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. (8) In February 2020, URNA issued $750 aggregate principal amount of 4 percent Notes which are due July 15, 2030. The net proceeds from the issuance were approximately $741 (after deducting offering expenses). The 4 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 4 percent Notes may be redeemed on or after July 15, 2025, at specified redemption prices that range from 102.000 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 July 15, 2023, up to 40 percent of the aggregate principal amount of the 4 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 104.000 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 4 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens and (ii) mergers and consolidations, 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 requirements to provide subsidiary guarantees and to make an offer to repurchase the notes upon the occurrence of a change of control will not apply to URNA and its restricted subsidiaries during any period when the 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 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. (9) In August 2020, URNA issued $1.100 billion aggregate principal amount of 3 7 / 8 percent Senior Notes (the “3 7 / 8 percent Notes”) which are due February 15, 2031. The net proceeds from the issuance were approximately $1.087 billion (after deducting offering expenses). The 3 7 / 8 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 3 7 / 8 percent Notes may be redeemed on or after August 15, 2025, at specified redemption prices that range from 101.938 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 August 15, 2023, up to 40 percent of the aggregate principal amount of the 3 7 / 8 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 103.875 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 3 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens and (ii) mergers and consolidations, 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 requirements to provide subsidiary guarantees and to make an offer to repurchase the notes upon the occurrence of a change of control will not apply to URNA and its restricted subsidiaries during any period when the 3 7 / 8 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 3 7 / 8 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. (10) As of September 30, 2020, our short-term debt primarily reflects $634 of borrowings under our accounts receivable securitization facility. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Assets and liabilities of leases | The tables below present financial information associated with our leases as of September 30, 2020 and December 31, 2019, and for the three and nine months ended September 30, 2020 and 2019. Classification September 30, 2020 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 663 $ 669 Finance lease assets Rental equipment 297 286 Less accumulated depreciation (87) (89) Rental equipment, net 210 197 Property and equipment, net: Non-rental vehicles 8 8 Buildings 19 18 Less accumulated depreciation and amortization (11) (15) Property and equipment, net 16 11 Total leased assets 889 877 Liabilities Current Operating Accrued expenses and other liabilities 178 178 Finance Short-term debt and current maturities of long-term debt 56 58 Long-term Operating Operating lease liabilities 524 533 Finance Long-term debt 85 69 Total lease liabilities $ 843 $ 838 |
Lease, cost | Lease cost Classification Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Operating lease cost (1) Cost of equipment rentals, excluding depreciation (1) $ 95 $ 95 $ 273 $ 270 Selling, general and administrative expenses 2 3 8 8 Restructuring charge 1 1 3 14 Finance lease cost Amortization of leased assets Depreciation of rental equipment 8 7 23 21 Non-rental depreciation and amortization — 1 1 2 Interest on lease liabilities Interest expense, net 3 2 9 5 Sublease income (2) (41) (42) (105) (114) Net lease cost $ 68 $ 67 $ 212 $ 206 _________________ (1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation includes $32 and $40 for the three months ended, September 30, 2020 and 2019, respectively, and $90 and $103 for the nine months ended September 30, 2020 and 2019, 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. Lease term and discount rate September 30, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating leases 4.8 4.8 Finance leases 2.9 3.2 Weighted-average discount rate Operating leases 4.4 % 4.7 % Finance leases 3.6 % 4.0 % Other information Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 156 $ 151 Operating cash flows from finance leases 9 5 Financing cash flows from finance leases 39 35 Leased assets obtained in exchange for new operating lease liabilities 135 147 Leased assets obtained in exchange for new finance lease liabilities $ 54 $ 36 |
Lessee, operating lease, liability, maturity | Maturity of lease liabilities (as of September 30, 2020) Operating leases (1) Finance leases (2) 2020 $ 53 $ 15 2021 201 65 2022 168 36 2023 134 25 2024 100 4 Thereafter 145 5 Total 801 150 Less amount representing interest (99) (9) Present value of lease liabilities $ 702 $ 141 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of September 30, 2020. 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 September 30, 2020) Operating leases (1) Finance leases (2) 2020 $ 53 $ 15 2021 201 65 2022 168 36 2023 134 25 2024 100 4 Thereafter 145 5 Total 801 150 Less amount representing interest (99) (9) Present value of lease liabilities $ 702 $ 141 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of September 30, 2020. 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net income available to common stockholders $ 208 $ 391 593 836 Denominator: Denominator for basic earnings per share—weighted-average common shares 72,190 76,699 72,795 78,111 Effect of dilutive securities: Employee stock options 9 30 12 144 Restricted stock units 243 128 193 186 Denominator for diluted earnings per share—adjusted weighted-average common shares 72,442 76,857 73,000 78,441 Basic earnings per share $ 2.88 $ 5.10 $ 8.14 $ 10.70 Diluted earnings per share $ 2.87 $ 5.08 $ 8.12 $ 10.66 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information of Guarantor Subsidiaries (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV ASSETS Cash and cash equivalents $ — $ 26 $ — $ 148 $ — $ — $ 174 Accounts receivable, net — — — 140 1,184 — 1,324 Intercompany receivable (payable) 2,859 (2,774) (89) 3 1 — — Inventory — 97 — 11 — — 108 Prepaid expenses and other assets — 121 — 1 — — 122 Total current assets 2,859 (2,530) (89) 303 1,185 — 1,728 Rental equipment, net — 8,312 — 729 — — 9,041 Property and equipment, net 104 393 55 46 — — 598 Investments in subsidiaries 1,206 1,776 1,076 — — (4,058) — Goodwill — 4,757 — 390 — — 5,147 Other intangible assets, net — 655 — 46 — — 701 Operating lease right-of-use assets — 183 413 67 — — 663 Other long-term assets 13 16 — 1 — — 30 Total assets $ 4,182 $ 13,562 $ 1,455 $ 1,582 $ 1,185 $ (4,058) $ 17,908 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ — $ 63 $ — $ 3 $ 634 $ — $ 700 Accounts payable — 483 — 58 — — 541 Accrued expenses and other liabilities — 502 124 49 — — 675 Total current liabilities — 1,048 124 110 634 — 1,916 Long-term debt — 9,332 6 13 — — 9,351 Deferred taxes 21 1,697 — 100 — — 1,818 Operating lease liabilities — 141 328 55 — — 524 Other long-term liabilities — 138 — — — — 138 Total liabilities 21 12,356 458 278 634 — 13,747 Total stockholders’ equity (deficit) 4,161 1,206 997 1,304 551 (4,058) 4,161 Total liabilities and stockholders’ equity (deficit) $ 4,182 $ 13,562 $ 1,455 $ 1,582 $ 1,185 $ (4,058) $ 17,908 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2019 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV ASSETS Cash and cash equivalents $ — $ 28 $ — $ 24 $ — $ — $ 52 Accounts receivable, net — — — 171 1,359 — 1,530 Intercompany receivable (payable) 2,255 (2,130) (112) (14) 1 — — Inventory — 108 — 12 — — 120 Prepaid expenses and other assets — 124 — 16 — — 140 Total current assets 2,255 (1,870) (112) 209 1,360 — 1,842 Rental equipment, net — 8,995 — 792 — — 9,787 Property and equipment, net 76 400 78 50 — — 604 Investments in subsidiaries 1,509 1,636 1,069 — — (4,214) — Goodwill — 4,759 — 395 — — 5,154 Other intangible assets, net — 833 — 62 — — 895 Operating lease right-of-use assets — 194 403 72 — — 669 Other long-term assets 12 7 — — — — 19 Total assets $ 3,852 $ 14,954 $ 1,438 $ 1,580 $ 1,360 $ (4,214) $ 18,970 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ — $ 66 $ — $ 2 $ 929 $ — $ 997 Accounts payable — 395 — 59 — — 454 Accrued expenses and other liabilities — 572 118 55 2 — 747 Total current liabilities — 1,033 118 116 931 — 2,198 Long-term debt — 10,402 7 22 — — 10,431 Deferred taxes 22 1,768 — 97 — — 1,887 Operating lease liabilities — 151 323 59 — — 533 Other long-term liabilities — 91 — — — — 91 Total liabilities 22 13,445 448 294 931 — 15,140 Total stockholders’ equity (deficit) 3,830 1,509 990 1,286 429 (4,214) 3,830 Total liabilities and stockholders’ equity (deficit) $ 3,852 $ 14,954 $ 1,438 $ 1,580 $ 1,360 $ (4,214) $ 18,970 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME | Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 1,705 $ — $ 156 $ — $ — $ 1,861 Sales of rental equipment — 181 — 18 — — 199 Sales of new equipment — 47 — 7 — — 54 Contractor supplies sales — 22 — 3 — — 25 Service and other revenues — 42 — 6 — — 48 Total revenues — 1,997 — 190 — — 2,187 Cost of revenues: Cost of equipment rentals, excluding depreciation — 641 — 48 — — 689 Depreciation of rental equipment — 363 — 32 — — 395 Cost of rental equipment sales — 114 — 9 — — 123 Cost of new equipment sales — 41 — 6 — — 47 Cost of contractor supplies sales — 16 — 2 — — 18 Cost of service and other revenues — 25 — 4 — — 29 Total cost of revenues — 1,200 — 101 — — 1,301 Gross profit — 797 — 89 — — 886 Selling, general and administrative expenses (9) 205 — 23 11 2 232 Restructuring charge — 6 — — — — 6 Non-rental depreciation and amortization 9 81 — 7 — — 97 Operating income (loss) — 505 — 59 (11) (2) 551 Interest (income) expense, net (10) 285 — — 3 — 278 Other (income) expense, net (178) 205 — 13 (40) (2) (2) Income before provision (benefit) for income taxes 188 15 — 46 26 — 275 Provision (benefit) for income taxes 51 (4) — 13 7 — 67 Income before equity in net earnings (loss) of subsidiaries 137 19 — 33 19 — 208 Equity in net earnings (loss) of subsidiaries 71 52 30 — — (153) — Net income (loss) 208 71 30 33 19 (153) 208 Other comprehensive income (loss) 33 33 23 33 — (89) 33 Comprehensive income (loss) $ 241 $ 104 $ 53 $ 66 $ 19 $ (242) $ 241 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2019 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 1,971 $ — $ 176 $ — $ — $ 2,147 Sales of rental equipment — 181 — 17 — — 198 Sales of new equipment — 60 — 7 — — 67 Contractor supplies sales — 24 — 3 — — 27 Service and other revenues — 46 — 3 — — 49 Total revenues — 2,282 — 206 — — 2,488 Cost of revenues: Cost of equipment rentals, excluding depreciation — 737 — 76 — — 813 Depreciation of rental equipment — 378 — 39 — — 417 Cost of rental equipment sales — 113 — 9 — — 122 Cost of new equipment sales — 52 — 6 — — 58 Cost of contractor supplies sales — 16 — 2 — — 18 Cost of service and other revenues — 26 — 1 — — 27 Total cost of revenues — 1,322 — 133 — — 1,455 Gross profit — 960 — 73 — — 1,033 Selling, general and administrative expenses (7) 251 — 25 4 — 273 Restructuring charge — 2 — — — — 2 Non-rental depreciation and amortization 4 89 — 9 — — 102 Operating income (loss) 3 618 — 39 (4) — 656 Interest (income) expense, net (18) 158 — — 7 — 147 Other (income) expense, net (201) 230 — 15 (45) — (1) Income before provision for income taxes 222 230 — 24 34 — 510 Provision for income taxes 56 48 — 6 9 — 119 Income before equity in net earnings (loss) of subsidiaries 166 182 — 18 25 — 391 Equity in net earnings (loss) of subsidiaries 225 43 12 — — (280) — Net income (loss) 391 225 12 18 25 (280) 391 Other comprehensive (loss) income (23) (23) (12) (21) — 56 (23) Comprehensive income (loss) $ 368 $ 202 $ — $ (3) $ 25 $ (224) $ 368 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2020 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 4,856 $ — $ 429 $ 1 $ — $ 5,286 Sales of rental equipment — 531 — 52 — — 583 Sales of new equipment — 148 — 21 — — 169 Contractor supplies sales — 64 — 9 — — 73 Service and other revenues — 125 — 15 — — 140 Total revenues — 5,724 — 526 1 — 6,251 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,907 — 175 1 — 2,083 Depreciation of rental equipment — 1,119 — 97 — — 1,216 Cost of rental equipment sales — 327 — 26 — — 353 Cost of new equipment sales — 129 — 18 — — 147 Cost of contractor supplies sales — 46 — 6 — — 52 Cost of service and other revenues — 77 — 9 — — 86 Total cost of revenues — 3,605 — 331 1 — 3,937 Gross profit — 2,119 — 195 — — 2,314 Selling, general and administrative expenses (3) 620 — 73 34 (3) 721 Restructuring charge — 11 — — — — 11 Non-rental depreciation and amortization 20 249 — 23 — — 292 Operating (loss) income (17) 1,239 — 99 (34) 3 1,290 Interest (income) expense, net (37) 570 — — 11 — 544 Other (income) expense, net (508) 581 — 39 (121) 3 (6) Income before provision (benefit) for income taxes 528 88 — 60 76 — 752 Provision (benefit) for income taxes 131 (7) — 16 19 — 159 Income before equity in net earnings (loss) of subsidiaries 397 95 — 44 57 — 593 Equity in net earnings (loss) of subsidiaries 196 101 39 — — (336) — Net income (loss) 593 196 39 44 57 (336) 593 Other comprehensive (loss) income (28) (28) (32) (26) — 86 (28) Comprehensive income (loss) $ 565 $ 168 $ 7 $ 18 $ 57 $ (250) $ 565 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2019 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 5,407 $ — $ 494 $ 1 $ — $ 5,902 Sales of rental equipment — 535 — 52 — — 587 Sales of new equipment — 166 — 23 — — 189 Contractor supplies sales — 70 — 8 — — 78 Service and other revenues — 124 — 15 — — 139 Total revenues — 6,302 — 592 1 — 6,895 Cost of revenues: Cost of equipment rentals, excluding depreciation — 2,086 — 237 1 — 2,324 Depreciation of rental equipment — 1,109 — 102 — — 1,211 Cost of rental equipment sales — 334 — 29 — — 363 Cost of new equipment sales — 143 — 20 — — 163 Cost of contractor supplies sales — 49 — 5 — — 54 Cost of service and other revenues — 67 — 8 — — 75 Total cost of revenues — 3,788 — 401 1 — 4,190 Gross profit — 2,514 — 191 — — 2,705 Selling, general and administrative expenses 14 693 — 84 33 — 824 Merger related costs — 1 — — — — 1 Restructuring charge — 17 — (1) — — 16 Non-rental depreciation and amortization 14 271 — 26 — — 311 Operating (loss) income (28) 1,532 — 82 (33) — 1,553 Interest (income) expense, net (51) 506 — — 23 — 478 Other (income) expense, net (560) 640 — 44 (130) — (6) Income before provision for income taxes 583 386 — 38 74 — 1,081 Provision for income taxes 132 90 — 4 19 — 245 Income before equity in net earnings (loss) of subsidiaries 451 296 — 34 55 — 836 Equity in net earnings (loss) of subsidiaries 385 89 24 — — (498) — Net income (loss) 836 385 24 34 55 (498) 836 Other comprehensive income (loss) 20 20 30 20 — (70) 20 Comprehensive income (loss) $ 856 $ 405 $ 54 $ 54 $ 55 $ (568) $ 856 |
CONDENSED CONSOLIDATING CASH FLOW INFORMATION | CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Nine Months Ended September 30, 2020 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV Net cash provided by operating activities $ 41 $ 1,871 $ — $ 146 $ 230 $ — $ 2,288 Net cash used in investing activities (41) (235) — (10) — — (286) Net cash used in financing activities — (1,638) — (13) (230) — (1,881) Effect of foreign exchange rates — — — 1 — — 1 Net (decrease) increase in cash and cash equivalents — (2) — 124 — — 122 Cash and cash equivalents at beginning of period — 28 — 24 — — 52 Cash and cash equivalents at end of period $ — $ 26 $ — $ 148 $ — $ — $ 174 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Nine Months Ended September 30, 2019 Parent URNA Guarantor Non-Guarantor Eliminations Total Foreign SPV Net cash provided by operating activities $ 21 $ 2,403 $ — $ 151 $ 7 $ — $ 2,582 Net cash used in investing activities (21) (1,592) — (136) — — (1,749) Net cash used in financing activities — (777) — (32) (7) — (816) Effect of foreign exchange rates — — — — — — — Net increase (decrease) in cash and cash equivalents — 34 — (17) — — 17 Cash and cash equivalents at beginning of period — 1 — 42 — — 43 Cash and cash equivalents at end of period $ — $ 35 $ — $ 25 $ — $ — $ 60 |
Organization, Description of _3
Organization, Description of Business and Basis of Presentation (Details) - Equipment rental revenue - Product concentration risk | 9 Months Ended |
Sep. 30, 2020 | |
Business Acquisition [Line Items] | |
Percentage of equipment rental revenue | 78.00% |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Re-rent revenue, Topic 842 | $ 41 | $ 42 | $ 105 | $ 114 |
Ancillary and other rental revenues: | ||||
Revenues | 2,187 | 2,488 | 6,251 | 6,895 |
Topic 842 | ||||
Ancillary and other rental revenues: | ||||
Revenues | 1,697 | 1,967 | 4,845 | 5,404 |
Topic 606 | ||||
Ancillary and other rental revenues: | ||||
Revenues | 490 | 521 | 1,406 | 1,491 |
Equipment rentals | ||||
Ancillary and other rental revenues: | ||||
Revenues | 1,861 | 2,147 | 5,286 | 5,902 |
Equipment rentals | Topic 842 | ||||
Ancillary and other rental revenues: | ||||
Revenues | 1,697 | 1,967 | 4,845 | 5,404 |
Equipment rentals | Topic 606 | ||||
Ancillary and other rental revenues: | ||||
Revenues | 164 | 180 | 441 | 498 |
Owned equipment rentals | ||||
Revenues: | ||||
Owned equipment rentals, Topic 842 | 1,572 | 1,831 | 4,498 | 5,029 |
Owned equipment rentals | Topic 842 | ||||
Revenues: | ||||
Owned equipment rentals, Topic 842 | 1,572 | 1,831 | 4,498 | 5,029 |
Re-rent revenue | ||||
Revenues: | ||||
Re-rent revenue, Topic 842 | 41 | 41 | 104 | 113 |
Re-rent revenue | Topic 842 | ||||
Revenues: | ||||
Re-rent revenue, Topic 842 | 41 | 41 | 104 | 113 |
Ancillary and Other Rental Revenues | ||||
Revenues: | ||||
Revenue from contract with customer | 138 | 156 | 370 | 418 |
Ancillary and other rental revenues: | ||||
Other | 110 | 119 | 314 | 342 |
Revenues | 248 | 275 | 684 | 760 |
Ancillary and Other Rental Revenues | Topic 842 | ||||
Revenues: | ||||
Revenue from contract with customer | 0 | 0 | 0 | 0 |
Ancillary and other rental revenues: | ||||
Other | 84 | 95 | 243 | 262 |
Revenues | 84 | 95 | 243 | 262 |
Ancillary and Other Rental Revenues | Topic 606 | ||||
Revenues: | ||||
Revenue from contract with customer | 138 | 156 | 370 | 418 |
Ancillary and other rental revenues: | ||||
Other | 26 | 24 | 71 | 80 |
Revenues | 164 | 180 | 441 | 498 |
Sales of rental equipment | ||||
Revenues: | ||||
Revenue from contract with customer | 199 | 198 | 583 | 587 |
Sales of rental equipment | Topic 606 | ||||
Revenues: | ||||
Revenue from contract with customer | 199 | 198 | 583 | 587 |
Sales of new equipment | ||||
Revenues: | ||||
Revenue from contract with customer | 54 | 67 | 169 | 189 |
Sales of new equipment | Topic 606 | ||||
Revenues: | ||||
Revenue from contract with customer | 54 | 67 | 169 | 189 |
Contractor supplies sales | ||||
Revenues: | ||||
Revenue from contract with customer | 25 | 27 | 73 | 78 |
Contractor supplies sales | Topic 606 | ||||
Revenues: | ||||
Revenue from contract with customer | 25 | 27 | 73 | 78 |
Service and other revenues | ||||
Revenues: | ||||
Revenue from contract with customer | 48 | 49 | 140 | 139 |
Service and other revenues | Topic 606 | ||||
Revenues: | ||||
Revenue from contract with customer | $ 48 | $ 49 | $ 140 | $ 139 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||||
Contract with customer, liability | $ 57,000,000 | $ 57,000,000 | $ 55,000,000 | ||||
Accounts receivable, net | 1,324,000,000 | 1,324,000,000 | 1,530,000,000 | ||||
Allowance for doubtful accounts | 114,000,000 | 114,000,000 | $ 103,000,000 | ||||
Bad debt expense | 2,000,000 | 8,000,000 | |||||
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 | 78.00% | ||||||
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 | 72.00% | ||||||
US | Revenues | Geographic Concentration Risk | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk | 92.00% | ||||||
General rentals | Revenues | Product concentration risk | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk | 78.00% |
Revenue Recognition (Allowance
Revenue Recognition (Allowance for Doubtful Accounts Rollforward) (Details) - SEC Schedule, 12-09, Allowance, Credit Loss - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning balance | $ 108 | $ 107 | $ 103 | $ 93 |
Acquired | 0 | 0 | 0 | 1 |
Charged to costs and expenses | 2 | 1 | 8 | 6 |
Charged to revenue | 12 | 5 | 22 | 27 |
Deductions | (8) | (10) | (19) | (24) |
Ending balance | $ 114 | $ 103 | $ 114 | $ 103 |
Segment Information (Financial
Segment Information (Financial Information by Segment) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)region | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)region | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information | |||||
Revenues | $ 2,187 | $ 2,488 | $ 6,251 | $ 6,895 | |
Depreciation and amortization expense | 492 | 519 | 1,508 | 1,522 | |
Equipment rentals gross profit | 886 | 1,033 | 2,314 | 2,705 | |
Capital expenditures | 930 | 2,131 | |||
Assets | 17,908 | 17,908 | $ 18,970 | ||
Equipment rentals | |||||
Segment Reporting Information | |||||
Revenues | 1,861 | 2,147 | 5,286 | 5,902 | |
Sales of rental equipment | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 199 | 198 | 583 | 587 | |
Sales of new equipment | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 54 | 67 | 169 | 189 | |
Contractor supplies sales | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 25 | 27 | 73 | 78 | |
Service and other revenues | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 48 | 49 | 140 | 139 | |
Equipment rentals gross profit | |||||
Segment Reporting Information | |||||
Equipment rentals gross profit | $ 777 | 917 | $ 1,987 | 2,367 | |
General rentals | |||||
Segment Reporting Information | |||||
Number of geographic regions entity operates in (locations) | region | 11 | 11 | |||
Revenues | $ 1,679 | 1,944 | $ 4,885 | 5,472 | |
Depreciation and amortization expense | 402 | 426 | 1,240 | 1,254 | |
Capital expenditures | 771 | 1,800 | |||
Assets | 15,039 | 15,039 | 16,036 | ||
General rentals | Equipment rentals | |||||
Segment Reporting Information | |||||
Revenues | 1,391 | 1,642 | 4,040 | 4,592 | |
General rentals | Sales of rental equipment | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 182 | 183 | 530 | 541 | |
General rentals | Sales of new equipment | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 47 | 60 | 145 | 167 | |
General rentals | Contractor supplies sales | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 17 | 17 | 48 | 53 | |
General rentals | Service and other revenues | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 42 | 42 | 122 | 119 | |
General rentals | Equipment rentals gross profit | |||||
Segment Reporting Information | |||||
Equipment rentals gross profit | 543 | 671 | 1,410 | 1,765 | |
Trench, power and fluid solutions | |||||
Segment Reporting Information | |||||
Revenues | 508 | 544 | 1,366 | 1,423 | |
Depreciation and amortization expense | 90 | 93 | 268 | 268 | |
Capital expenditures | 159 | 331 | |||
Assets | 2,869 | 2,869 | $ 2,934 | ||
Trench, power and fluid solutions | Equipment rentals | |||||
Segment Reporting Information | |||||
Revenues | 470 | 505 | 1,246 | 1,310 | |
Trench, power and fluid solutions | Sales of rental equipment | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 17 | 15 | 53 | 46 | |
Trench, power and fluid solutions | Sales of new equipment | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 7 | 7 | 24 | 22 | |
Trench, power and fluid solutions | Contractor supplies sales | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 8 | 10 | 25 | 25 | |
Trench, power and fluid solutions | Service and other revenues | |||||
Segment Reporting Information | |||||
Revenue from contract with customer | 6 | 7 | 18 | 20 | |
Trench, power and fluid solutions | Equipment rentals gross profit | |||||
Segment Reporting Information | |||||
Equipment rentals gross profit | $ 234 | $ 246 | $ 577 | $ 602 |
Segment Information (Reconcilia
Segment Information (Reconciliation to Income (loss) from Continuing Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Equipment rentals gross profit | $ 886 | $ 1,033 | $ 2,314 | $ 2,705 |
Selling, general and administrative expenses | (232) | (273) | (721) | (824) |
Merger related costs | 0 | 0 | 0 | (1) |
Restructuring charge | (6) | (2) | (11) | (16) |
Non-rental depreciation and amortization | (97) | (102) | (292) | (311) |
Interest expense, net | (278) | (147) | (544) | (478) |
Other income, net | 2 | 1 | 6 | 6 |
Income before provision for income taxes | 275 | 510 | 752 | 1,081 |
Total equipment rentals gross profit | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Equipment rentals gross profit | 777 | 917 | 1,987 | 2,367 |
Gross profit from other lines of business | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Equipment rentals gross profit | $ 109 | $ 116 | $ 327 | $ 338 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charges (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)restructuring_program | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)restructuring_program | Sep. 30, 2019USD ($) | |
Restructuring Cost and Reserve | ||||
Restructuring costs incurred to date | $ 344 | $ 344 | ||
Asset impairment charges | $ 10 | $ 0 | $ 36 | $ 0 |
Closed Restructuring Programs | ||||
Restructuring Cost and Reserve | ||||
Number of restructuring programs | restructuring_program | 5 | 5 | ||
Restructuring and related activities, number of completed restructuring programs, liability | $ 15 | $ 15 |
Fair Value Measurements (Fair v
Fair Value Measurements (Fair value of financial instruments) (Details) - Senior notes - Level 1 - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes | $ 7,705 | $ 7,755 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes | $ 8,113 | $ 8,176 |
Debt (Schedule of long-term deb
Debt (Schedule of long-term debt instruments) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||||||
Oct. 31, 2020 | Aug. 31, 2020 | Jun. 30, 2020 | Feb. 29, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | May 31, 2020 | Dec. 31, 2019 | |
Debt Instrument | ||||||||
Finance leases | $ 141,000,000 | $ 127,000,000 | ||||||
Total debt | 10,051,000,000 | 11,428,000,000 | ||||||
Less short-term portion | (700,000,000) | (997,000,000) | ||||||
Total long-term debt | 9,351,000,000 | 10,431,000,000 | ||||||
Gain (loss) on extinguishment of debt | 159,000,000 | $ 32,000,000 | ||||||
Term loan facility expiring 2025 | ||||||||
Debt Instrument | ||||||||
Long-term debt | $ 973,000,000 | 979,000,000 | ||||||
Annual repayment rate | 1.00% | |||||||
Line of Credit | $3.75 billion ABL Facility expiring 2024 | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | $ 3,750,000,000 | |||||||
Long-term debt | 598,000,000 | 1,638,000,000 | ||||||
Borrowing capacity, net of letters of credit | 3,091,000,000 | |||||||
Letters of credit | $ 52,000,000 | |||||||
Interest rate at September 30, 2020 | 1.40% | |||||||
Average month-end debt outstanding | $ 730,000,000 | |||||||
Weighted-average interest rate on average debt outstanding | 2.10% | |||||||
Maximum month-end debt outstanding | $ 1,494,000,000 | |||||||
Senior notes | 5 1/2 percent Senior Notes due 2025 | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 5.50% | |||||||
Long-term debt | $ 0 | 795,000,000 | ||||||
Gain (loss) on extinguishment of debt | $ 27,000,000 | |||||||
Senior notes | 4 5/8 percent Senior Notes due 2025 | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 4.625% | |||||||
Long-term debt | $ 743,000,000 | 742,000,000 | ||||||
Senior notes | 4 5/8 percent Senior Notes due 2025 | Forecast | Subsequent Event | ||||||||
Debt Instrument | ||||||||
Gain (loss) on extinguishment of debt | $ 24,000,000 | |||||||
Senior notes | 5 7/8 percent Senior Notes due 2026 | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 5.875% | |||||||
Long-term debt | $ 999,000,000 | 999,000,000 | ||||||
Senior notes | 6 1/2 percent Senior Notes due 2026 | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 6.50% | |||||||
Long-term debt | $ 0 | 1,089,000,000 | ||||||
Gain (loss) on extinguishment of debt | 132,000,000 | |||||||
Senior notes | 5 1/2 percent Senior Notes due 2027 | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 5.50% | |||||||
Long-term debt | $ 993,000,000 | 992,000,000 | ||||||
Senior notes | 3 7/8 percent Senior Secured Notes due 2027 | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 3.875% | |||||||
Long-term debt | $ 742,000,000 | 741,000,000 | ||||||
Senior notes | 4 7/8 percent Senior Notes due 2028 | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 4.875% | |||||||
Long-term debt | $ 1,654,000,000 | 1,652,000,000 | ||||||
Senior notes | 4 7/8 percent Senior Notes due 2028 | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 4.875% | |||||||
Long-term debt | $ 4,000,000 | 4,000,000 | ||||||
Senior notes | 5 1/4 percent Senior Notes due 2030 | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 5.25% | |||||||
Long-term debt | $ 742,000,000 | 741,000,000 | ||||||
Senior notes | 4 percent Senior Notes due 2030 | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 4.00% | 4.00% | ||||||
Long-term debt | $ 741,000,000 | |||||||
Senior notes | Senior Notes 3.875 Due 2031 | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 5.875% | |||||||
Long-term debt | $ 1,087,000,000 | |||||||
Line of Credit | Accounts Receivable Securitization Facility expiring 2021 | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | $ 800,000,000 | $ 975,000,000 | ||||||
Long-term debt | 634,000,000 | $ 929,000,000 | ||||||
Borrowing capacity, net of letters of credit | $ 165,000,000 | |||||||
Interest rate at September 30, 2020 | 1.50% | |||||||
Average month-end debt outstanding | $ 671,000,000 | |||||||
Weighted-average interest rate on average debt outstanding | 1.90% | |||||||
Maximum month-end debt outstanding | $ 811,000,000 | |||||||
Collateral amount | 873,000,000 | |||||||
Debt extension period | 364 days | |||||||
Line of Credit | Term loan facility | ||||||||
Debt Instrument | ||||||||
Borrowing capacity, net of letters of credit | $ 0 | |||||||
Interest rate at September 30, 2020 | 1.90% | |||||||
Average month-end debt outstanding | $ 984,000,000 | |||||||
Weighted-average interest rate on average debt outstanding | 2.40% | |||||||
Maximum month-end debt outstanding | $ 988,000,000 | |||||||
Subsidiaries | Senior notes | 4 percent Senior Notes due 2030 | ||||||||
Debt Instrument | ||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||
Proceeds from debt, net of issuance costs | $ 741,000,000 | |||||||
Subsidiaries | Senior notes | Senior Notes 3.875 Due 2031 | ||||||||
Debt Instrument | ||||||||
Debt instrument, face amount | 1,100,000,000 | |||||||
Proceeds from debt, net of issuance costs | $ 1,087,000,000 | |||||||
Subsidiaries | Redemption Period Two | Senior notes | 4 percent Senior Notes due 2030 | ||||||||
Debt Instrument | ||||||||
Debt instrument, redemption price, percentage | 104.00% | |||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 40.00% | |||||||
Subsidiaries | Redemption Period Two | Senior notes | Senior Notes 3.875 Due 2031 | ||||||||
Debt Instrument | ||||||||
Debt instrument, redemption price, percentage | 103.875% | |||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 40.00% | |||||||
Subsidiaries | Redemption Period Three | Senior notes | 4 percent Senior Notes due 2030 | ||||||||
Debt Instrument | ||||||||
Debt instrument, redemption price, percentage | 101.00% | |||||||
Subsidiaries | Redemption Period Three | Senior notes | Senior Notes 3.875 Due 2031 | ||||||||
Debt Instrument | ||||||||
Debt instrument, redemption price, percentage | 101.00% | |||||||
Minimum | Subsidiaries | Redemption Period One | Senior notes | 4 percent Senior Notes due 2030 | ||||||||
Debt Instrument | ||||||||
Debt instrument, redemption price, percentage | 102.00% | |||||||
Minimum | Subsidiaries | Redemption Period One | Senior notes | Senior Notes 3.875 Due 2031 | ||||||||
Debt Instrument | ||||||||
Debt instrument, redemption price, percentage | 101.938% | |||||||
Maximum | Subsidiaries | Redemption Period One | Senior notes | 4 percent Senior Notes due 2030 | ||||||||
Debt Instrument | ||||||||
Debt instrument, redemption price, percentage | 100.00% | |||||||
Maximum | Subsidiaries | Redemption Period One | Senior notes | Senior Notes 3.875 Due 2031 | ||||||||
Debt Instrument | ||||||||
Debt instrument, redemption price, percentage | 100.00% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Line of Credit | ABL Facility | |
Debt Instrument | |
Minimum available borrowing capacity, percentage | 10.00% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Product concentration risk | Revenues | |
Lessee, Lease, Description [Line Items] | |
Percentage of equipment rental revenue | 78.00% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 5 years |
Leases (Summary of Financial In
Leases (Summary of Financial Information Associated with Leases) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Operating lease right-of-use assets | $ 663 | $ 669 |
Total leased assets | 889 | 877 |
Current | ||
Accrued expenses and other liabilities | 178 | 178 |
Short-term debt and current maturities of long-term debt | 56 | 58 |
Long-term | ||
Operating lease liabilities | 524 | 533 |
Long-term debt | 85 | 69 |
Total lease liabilities | 843 | 838 |
Rental equipment | ||
Assets | ||
Finance lease assets, gross | 297 | 286 |
Less accumulated depreciation and amortization | (87) | (89) |
Finance lease assets, net | 210 | 197 |
Property and equipment, net | ||
Assets | ||
Less accumulated depreciation and amortization | (11) | (15) |
Finance lease assets, net | 16 | 11 |
Non-rental vehicles | ||
Assets | ||
Finance lease assets, gross | 8 | 8 |
Buildings | ||
Assets | ||
Finance lease assets, gross | $ 19 | $ 18 |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finance lease cost | ||||
Sublease income | $ (41) | $ (42) | $ (105) | $ (114) |
Net lease cost | 68 | 67 | 212 | 206 |
Short-term lease, cost | 32 | 40 | 90 | 103 |
Cost of equipment rentals, excluding depreciation | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | 95 | 95 | 273 | 270 |
Selling, general and administrative expenses | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | 2 | 3 | 8 | 8 |
Restructuring charge | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | 1 | 1 | 3 | 14 |
Depreciation of rental equipment | ||||
Finance lease cost | ||||
Amortization of leased assets | 8 | 7 | 23 | 21 |
Non-rental depreciation and amortization | ||||
Finance lease cost | ||||
Amortization of leased assets | 0 | 1 | 1 | 2 |
Interest expense, net | ||||
Finance lease cost | ||||
Interest on lease liabilities | $ 3 | $ 2 | $ 9 | $ 5 |
Leases (Maturity of Lease Liabi
Leases (Maturity of Lease Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Operating leases | ||
2020 | $ 53 | |
2021 | 201 | |
2022 | 168 | |
2023 | 134 | |
2024 | 100 | |
Thereafter | 145 | |
Total | 801 | |
Less amount representing interest | (99) | |
Present value of lease liabilities | 702 | |
Finance leases | ||
2020 | 15 | |
2021 | 65 | |
2022 | 36 | |
2023 | 25 | |
2024 | 4 | |
Thereafter | 5 | |
Total | 150 | |
Less amount representing interest | (9) | |
Present value of lease liabilities | $ 141 | $ 127 |
Leases (Lease Term and Discount
Leases (Lease Term and Discount Rate) (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
Weighted-average remaining lease term (years) | ||
Operating leases | 4 years 9 months 18 days | 4 years 9 months 18 days |
Finance leases | 2 years 10 months 24 days | 3 years 2 months 12 days |
Weighted-average discount rate | ||
Operating leases | 4.40% | 4.70% |
Finance leases | 3.60% | 4.00% |
Leases (Other Information) (Det
Leases (Other Information) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 156 | $ 151 |
Operating cash flows from finance leases | 9 | 5 |
Financing cash flows from finance leases | 39 | 35 |
Leased assets obtained in exchange for new operating lease liabilities | 135 | 147 |
Leased assets obtained in exchange for new finance lease liabilities | $ 54 | $ 36 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||
Net income available to common stockholders | $ 208 | $ 391 | $ 593 | $ 836 |
Denominator: | ||||
Denominator for basic earnings per share—weighted-average common shares (in shares) | 72,190 | 76,699 | 72,795 | 78,111 |
Effect of dilutive securities: | ||||
Denominator for diluted earnings per share—adjusted weighted-average common shares (in shares) | 72,442 | 76,857 | 73,000 | 78,441 |
Basic earnings per share (in dollars per share) | $ 2.88 | $ 5.10 | $ 8.14 | $ 10.70 |
Diluted earnings per share (in dollars per share) | $ 2.87 | $ 5.08 | $ 8.12 | $ 10.66 |
Employee stock options | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 9 | 30 | 12 | 144 |
Restricted stock units | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 243 | 128 | 193 | 186 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information of Guarantor Subsidiaries - Narrative (Details) - ABL Facility, Accounts Receivable Securitization Facility, and Other Agreements $ in Millions | Sep. 30, 2020USD ($) |
Condensed Financial Statements, Captions [Line Items] | |
Line of credit facility, restricted payment capacity | $ 3,774 |
URNA | |
Condensed Financial Statements, Captions [Line Items] | |
Line of credit facility, restricted payment capacity | $ 915 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING BALANCE SHEET (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 174 | $ 52 |
Accounts receivable, net | 1,324 | 1,530 |
Intercompany receivable (payable) | 0 | 0 |
Inventory | 108 | 120 |
Prepaid expenses and other assets | 122 | 140 |
Total current assets | 1,728 | 1,842 |
Investments in subsidiaries | 0 | 0 |
Goodwill | 5,147 | 5,154 |
Other intangible assets, net | 701 | 895 |
Operating lease right-of-use assets | 663 | 669 |
Other long-term assets | 30 | 19 |
Total assets | 17,908 | 18,970 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Short-term debt and current maturities of long-term debt | 700 | 997 |
Accounts payable | 541 | 454 |
Accrued expenses and other liabilities | 675 | 747 |
Total current liabilities | 1,916 | 2,198 |
Long-term debt | 9,351 | 10,431 |
Deferred taxes | 1,818 | 1,887 |
Operating lease liabilities | 524 | 533 |
Other long-term liabilities | 138 | 91 |
Total liabilities | 13,747 | 15,140 |
Total stockholders’ equity (deficit) | 4,161 | 3,830 |
Total liabilities and stockholders’ equity (deficit) | 17,908 | 18,970 |
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 | (4,058) | (4,214) |
Goodwill | 0 | 0 |
Other intangible assets, net | 0 | 0 |
Operating lease right-of-use assets | 0 | 0 |
Other long-term assets | 0 | 0 |
Total assets | (4,058) | (4,214) |
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 | 0 |
Other long-term liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Total stockholders’ equity (deficit) | (4,058) | (4,214) |
Total liabilities and stockholders’ equity (deficit) | (4,058) | (4,214) |
Parent | Reportable Legal Entities | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Intercompany receivable (payable) | 2,859 | 2,255 |
Inventory | 0 | 0 |
Prepaid expenses and other assets | 0 | 0 |
Total current assets | 2,859 | 2,255 |
Investments in subsidiaries | 1,206 | 1,509 |
Goodwill | 0 | 0 |
Other intangible assets, net | 0 | 0 |
Operating lease right-of-use assets | 0 | 0 |
Other long-term assets | 13 | 12 |
Total assets | 4,182 | 3,852 |
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 | 21 | 22 |
Operating lease liabilities | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Total liabilities | 21 | 22 |
Total stockholders’ equity (deficit) | 4,161 | 3,830 |
Total liabilities and stockholders’ equity (deficit) | 4,182 | 3,852 |
URNA | Reportable Legal Entities | ||
ASSETS | ||
Cash and cash equivalents | 26 | 28 |
Accounts receivable, net | 0 | 0 |
Intercompany receivable (payable) | (2,774) | (2,130) |
Inventory | 97 | 108 |
Prepaid expenses and other assets | 121 | 124 |
Total current assets | (2,530) | (1,870) |
Investments in subsidiaries | 1,776 | 1,636 |
Goodwill | 4,757 | 4,759 |
Other intangible assets, net | 655 | 833 |
Operating lease right-of-use assets | 183 | 194 |
Other long-term assets | 16 | 7 |
Total assets | 13,562 | 14,954 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Short-term debt and current maturities of long-term debt | 63 | 66 |
Accounts payable | 483 | 395 |
Accrued expenses and other liabilities | 502 | 572 |
Total current liabilities | 1,048 | 1,033 |
Long-term debt | 9,332 | 10,402 |
Deferred taxes | 1,697 | 1,768 |
Operating lease liabilities | 141 | 151 |
Other long-term liabilities | 138 | 91 |
Total liabilities | 12,356 | 13,445 |
Total stockholders’ equity (deficit) | 1,206 | 1,509 |
Total liabilities and stockholders’ equity (deficit) | 13,562 | 14,954 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Intercompany receivable (payable) | (89) | (112) |
Inventory | 0 | 0 |
Prepaid expenses and other assets | 0 | 0 |
Total current assets | (89) | (112) |
Investments in subsidiaries | 1,076 | 1,069 |
Goodwill | 0 | 0 |
Other intangible assets, net | 0 | 0 |
Operating lease right-of-use assets | 413 | 403 |
Other long-term assets | 0 | 0 |
Total assets | 1,455 | 1,438 |
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 | 124 | 118 |
Total current liabilities | 124 | 118 |
Long-term debt | 6 | 7 |
Deferred taxes | 0 | 0 |
Operating lease liabilities | 328 | 323 |
Other long-term liabilities | 0 | 0 |
Total liabilities | 458 | 448 |
Total stockholders’ equity (deficit) | 997 | 990 |
Total liabilities and stockholders’ equity (deficit) | 1,455 | 1,438 |
Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | ||
ASSETS | ||
Cash and cash equivalents | 148 | 24 |
Accounts receivable, net | 140 | 171 |
Intercompany receivable (payable) | 3 | (14) |
Inventory | 11 | 12 |
Prepaid expenses and other assets | 1 | 16 |
Total current assets | 303 | 209 |
Investments in subsidiaries | 0 | 0 |
Goodwill | 390 | 395 |
Other intangible assets, net | 46 | 62 |
Operating lease right-of-use assets | 67 | 72 |
Other long-term assets | 1 | 0 |
Total assets | 1,582 | 1,580 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Short-term debt and current maturities of long-term debt | 3 | 2 |
Accounts payable | 58 | 59 |
Accrued expenses and other liabilities | 49 | 55 |
Total current liabilities | 110 | 116 |
Long-term debt | 13 | 22 |
Deferred taxes | 100 | 97 |
Operating lease liabilities | 55 | 59 |
Other long-term liabilities | 0 | 0 |
Total liabilities | 278 | 294 |
Total stockholders’ equity (deficit) | 1,304 | 1,286 |
Total liabilities and stockholders’ equity (deficit) | 1,582 | 1,580 |
Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Accounts receivable, net | 1,184 | 1,359 |
Intercompany receivable (payable) | 1 | 1 |
Inventory | 0 | 0 |
Prepaid expenses and other assets | 0 | 0 |
Total current assets | 1,185 | 1,360 |
Investments in subsidiaries | 0 | 0 |
Goodwill | 0 | 0 |
Other intangible assets, net | 0 | 0 |
Operating lease right-of-use assets | 0 | 0 |
Other long-term assets | 0 | 0 |
Total assets | 1,185 | 1,360 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Short-term debt and current maturities of long-term debt | 634 | 929 |
Accounts payable | 0 | 0 |
Accrued expenses and other liabilities | 0 | 2 |
Total current liabilities | 634 | 931 |
Long-term debt | 0 | 0 |
Deferred taxes | 0 | 0 |
Operating lease liabilities | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Total liabilities | 634 | 931 |
Total stockholders’ equity (deficit) | 551 | 429 |
Total liabilities and stockholders’ equity (deficit) | 1,185 | 1,360 |
Rental equipment, net | ||
ASSETS | ||
Property and equipment, net | 9,041 | 9,787 |
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 | 8,312 | 8,995 |
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 | 729 | 792 |
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 | 598 | 604 |
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 | 104 | 76 |
Property and equipment, net | URNA | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | 393 | 400 |
Property and equipment, net | Guarantor Subsidiaries | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | 55 | 78 |
Property and equipment, net | Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | ||
ASSETS | ||
Property and equipment, net | 46 | 50 |
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 | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenues: | |||||
Revenues | $ 2,187 | $ 2,488 | $ 6,251 | $ 6,895 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 689 | 813 | 2,083 | 2,324 | |
Depreciation of rental equipment | 395 | 417 | 1,216 | 1,211 | |
Total cost of revenues | 1,301 | 1,455 | 3,937 | 4,190 | |
Gross profit | 886 | 1,033 | 2,314 | 2,705 | |
Selling, general and administrative expenses | 232 | 273 | 721 | 824 | |
Merger related costs | 0 | 0 | 0 | 1 | |
Restructuring charge | 6 | 2 | 11 | 16 | |
Non-rental depreciation and amortization | 97 | 102 | 292 | 311 | |
Operating income (loss) | 551 | 656 | 1,290 | 1,553 | |
Interest (income) expense, net | 278 | 147 | 544 | 478 | |
Other (income) expense, net | (2) | (1) | (6) | (6) | |
Income before provision for income taxes | 275 | 510 | 752 | 1,081 | |
Provision (benefit) for income taxes | 67 | 119 | 159 | 245 | |
Income before equity in net earnings (loss) of subsidiaries | 208 | 391 | 593 | 836 | |
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Net income | 208 | 391 | 593 | 836 | |
Other comprehensive (loss) income | 33 | (23) | (28) | 20 | |
Comprehensive income (loss) | [1] | 241 | 368 | 565 | 856 |
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 | 2 | 0 | (3) | 0 | |
Merger related costs | 0 | ||||
Restructuring charge | 0 | 0 | 0 | 0 | |
Non-rental depreciation and amortization | 0 | 0 | 0 | 0 | |
Operating income (loss) | (2) | 0 | 3 | 0 | |
Interest (income) expense, net | 0 | 0 | 0 | 0 | |
Other (income) expense, net | (2) | 0 | 3 | 0 | |
Income before provision for income taxes | 0 | 0 | 0 | 0 | |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | |
Income before equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Equity in net earnings (loss) of subsidiaries | (153) | (280) | (336) | (498) | |
Net income | (153) | (280) | (336) | (498) | |
Other comprehensive (loss) income | (89) | 56 | 86 | (70) | |
Comprehensive income (loss) | (242) | (224) | (250) | (568) | |
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 | (9) | (7) | (3) | 14 | |
Merger related costs | 0 | ||||
Restructuring charge | 0 | 0 | 0 | 0 | |
Non-rental depreciation and amortization | 9 | 4 | 20 | 14 | |
Operating income (loss) | 0 | 3 | (17) | (28) | |
Interest (income) expense, net | (10) | (18) | (37) | (51) | |
Other (income) expense, net | (178) | (201) | (508) | (560) | |
Income before provision for income taxes | 188 | 222 | 528 | 583 | |
Provision (benefit) for income taxes | 51 | 56 | 131 | 132 | |
Income before equity in net earnings (loss) of subsidiaries | 137 | 166 | 397 | 451 | |
Equity in net earnings (loss) of subsidiaries | 71 | 225 | 196 | 385 | |
Net income | 208 | 391 | 593 | 836 | |
Other comprehensive (loss) income | 33 | (23) | (28) | 20 | |
Comprehensive income (loss) | 241 | 368 | 565 | 856 | |
URNA | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 1,997 | 2,282 | 5,724 | 6,302 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 641 | 737 | 1,907 | 2,086 | |
Depreciation of rental equipment | 363 | 378 | 1,119 | 1,109 | |
Total cost of revenues | 1,200 | 1,322 | 3,605 | 3,788 | |
Gross profit | 797 | 960 | 2,119 | 2,514 | |
Selling, general and administrative expenses | 205 | 251 | 620 | 693 | |
Merger related costs | 1 | ||||
Restructuring charge | 6 | 2 | 11 | 17 | |
Non-rental depreciation and amortization | 81 | 89 | 249 | 271 | |
Operating income (loss) | 505 | 618 | 1,239 | 1,532 | |
Interest (income) expense, net | 285 | 158 | 570 | 506 | |
Other (income) expense, net | 205 | 230 | 581 | 640 | |
Income before provision for income taxes | 15 | 230 | 88 | 386 | |
Provision (benefit) for income taxes | (4) | 48 | (7) | 90 | |
Income before equity in net earnings (loss) of subsidiaries | 19 | 182 | 95 | 296 | |
Equity in net earnings (loss) of subsidiaries | 52 | 43 | 101 | 89 | |
Net income | 71 | 225 | 196 | 385 | |
Other comprehensive (loss) income | 33 | (23) | (28) | 20 | |
Comprehensive income (loss) | 104 | 202 | 168 | 405 | |
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 | ||||
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 | 0 | |
Other (income) expense, net | 0 | 0 | 0 | 0 | |
Income before provision for income taxes | 0 | 0 | 0 | 0 | |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | |
Income before equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Equity in net earnings (loss) of subsidiaries | 30 | 12 | 39 | 24 | |
Net income | 30 | 12 | 39 | 24 | |
Other comprehensive (loss) income | 23 | (12) | (32) | 30 | |
Comprehensive income (loss) | 53 | 0 | 7 | 54 | |
Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 190 | 206 | 526 | 592 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 48 | 76 | 175 | 237 | |
Depreciation of rental equipment | 32 | 39 | 97 | 102 | |
Total cost of revenues | 101 | 133 | 331 | 401 | |
Gross profit | 89 | 73 | 195 | 191 | |
Selling, general and administrative expenses | 23 | 25 | 73 | 84 | |
Merger related costs | 0 | ||||
Restructuring charge | 0 | 0 | 0 | (1) | |
Non-rental depreciation and amortization | 7 | 9 | 23 | 26 | |
Operating income (loss) | 59 | 39 | 99 | 82 | |
Interest (income) expense, net | 0 | 0 | 0 | 0 | |
Other (income) expense, net | 13 | 15 | 39 | 44 | |
Income before provision for income taxes | 46 | 24 | 60 | 38 | |
Provision (benefit) for income taxes | 13 | 6 | 16 | 4 | |
Income before equity in net earnings (loss) of subsidiaries | 33 | 18 | 44 | 34 | |
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Net income | 33 | 18 | 44 | 34 | |
Other comprehensive (loss) income | 33 | (21) | (26) | 20 | |
Comprehensive income (loss) | 66 | (3) | 18 | 54 | |
Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 0 | 0 | 1 | 1 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 1 | 1 | |
Depreciation of rental equipment | 0 | 0 | 0 | 0 | |
Total cost of revenues | 0 | 0 | 1 | 1 | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 11 | 4 | 34 | 33 | |
Merger related costs | 0 | ||||
Restructuring charge | 0 | 0 | 0 | 0 | |
Non-rental depreciation and amortization | 0 | 0 | 0 | 0 | |
Operating income (loss) | (11) | (4) | (34) | (33) | |
Interest (income) expense, net | 3 | 7 | 11 | 23 | |
Other (income) expense, net | (40) | (45) | (121) | (130) | |
Income before provision for income taxes | 26 | 34 | 76 | 74 | |
Provision (benefit) for income taxes | 7 | 9 | 19 | 19 | |
Income before equity in net earnings (loss) of subsidiaries | 19 | 25 | 57 | 55 | |
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Net income | 19 | 25 | 57 | 55 | |
Other comprehensive (loss) income | 0 | 0 | 0 | 0 | |
Comprehensive income (loss) | 19 | 25 | 57 | 55 | |
Equipment rentals | |||||
Revenues: | |||||
Revenues | 1,861 | 2,147 | 5,286 | 5,902 | |
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 | 1,705 | 1,971 | 4,856 | 5,407 | |
Equipment rentals | Guarantor Subsidiaries | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Equipment rentals | Non-Guarantor Subsidiaries - Foreign | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 156 | 176 | 429 | 494 | |
Equipment rentals | Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | |||||
Revenues: | |||||
Revenues | 0 | 0 | 1 | 1 | |
Sales of rental equipment | |||||
Revenues: | |||||
Revenue from contract with customer | 199 | 198 | 583 | 587 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 123 | 122 | 353 | 363 | |
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 | 181 | 531 | 535 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 114 | 113 | 327 | 334 | |
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 | 18 | 17 | 52 | 52 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 9 | 9 | 26 | 29 | |
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 | 54 | 67 | 169 | 189 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 47 | 58 | 147 | 163 | |
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 | 47 | 60 | 148 | 166 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 41 | 52 | 129 | 143 | |
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 | 7 | 21 | 23 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 6 | 6 | 18 | 20 | |
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 | 25 | 27 | 73 | 78 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 18 | 18 | 52 | 54 | |
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 | 22 | 24 | 64 | 70 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 16 | 16 | 46 | 49 | |
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 | 9 | 8 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 2 | 2 | 6 | 5 | |
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 | 48 | 49 | 140 | 139 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 29 | 27 | 86 | 75 | |
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 | 42 | 46 | 125 | 124 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 25 | 26 | 77 | 67 | |
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 | 6 | 3 | 15 | 15 | |
Cost of revenues: | |||||
Cost of Goods and Services Sold | 4 | 1 | 9 | 8 | |
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 | |
[1] | There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive income (loss) during 2020 or 2019. 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 2020 or 2019. |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | $ 2,288 | $ 2,582 |
Net cash used in investing activities | (286) | (1,749) |
Net cash used in financing activities | (1,881) | (816) |
Effect of foreign exchange rates | 1 | 0 |
Net increase in cash and cash equivalents | 122 | 17 |
Cash and cash equivalents at beginning of period | 52 | 43 |
Cash and cash equivalents at end of period | 174 | 60 |
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 | 0 |
Net increase 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 | 41 | 21 |
Net cash used in investing activities | (41) | (21) |
Net cash used in financing activities | 0 | 0 |
Effect of foreign exchange rates | 0 | 0 |
Net increase 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 | 1,871 | 2,403 |
Net cash used in investing activities | (235) | (1,592) |
Net cash used in financing activities | (1,638) | (777) |
Effect of foreign exchange rates | 0 | 0 |
Net increase in cash and cash equivalents | (2) | 34 |
Cash and cash equivalents at beginning of period | 28 | 1 |
Cash and cash equivalents at end of period | 26 | 35 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
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 | 0 |
Net increase 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 | 146 | 151 |
Net cash used in investing activities | (10) | (136) |
Net cash used in financing activities | (13) | (32) |
Effect of foreign exchange rates | 1 | 0 |
Net increase in cash and cash equivalents | 124 | (17) |
Cash and cash equivalents at beginning of period | 24 | 42 |
Cash and cash equivalents at end of period | 148 | 25 |
Non Guarantor Subsidiaries - SPV | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 230 | 7 |
Net cash used in investing activities | 0 | 0 |
Net cash used in financing activities | (230) | (7) |
Effect of foreign exchange rates | 0 | 0 |
Net increase 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 |