Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 12, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-3313 | ||
Entity Registrant Name | HERC HOLDINGS INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-3530539 | ||
Entity Address, Address Line One | 27500 Riverview Center Blvd. | ||
Entity Address, City or Town | Bonita Springs | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 34134 | ||
City Area Code | 239 | ||
Local Phone Number | 301-1000 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | HRI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 593.8 | ||
Entity Common Stock, Shares Outstanding | 29,402,939 | ||
Documents Incorporated by Reference | Certain portions, as expressly described in this report, of the Registrant's Proxy Statement for its 2021 annual meeting of stockholders, to be filed within 120 days of December 31, 2020 (the "Proxy Statement"), are incorporated by reference into Part III. | ||
Entity Central Index Key | 0001364479 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 33 | $ 33 |
Receivables, net of allowances of $15.5 and $18.8, respectively | 301.2 | 306.7 |
Other current assets | 32.9 | 28.9 |
Assets held for sale | 0 | 31.1 |
Total current assets | 367.1 | 399.7 |
Rental equipment, net | 2,260.4 | 2,490 |
Property and equipment, net | 290.4 | 311.8 |
Right-of-use lease assets | 255.9 | 207.3 |
Intangible assets, net | 295.9 | 291.5 |
Goodwill | 100.5 | 93.6 |
Other long-term assets | 18.2 | 23.1 |
Total assets | 3,588.4 | 3,817 |
LIABILITIES AND EQUITY | ||
Current maturities of long-term debt and financing obligations | 15.8 | 30.4 |
Current maturities of operating lease liabilities | 32.1 | 30.5 |
Accounts payable | 125.8 | 126.5 |
Accrued liabilities | 154.3 | 135.7 |
Total current liabilities | 328 | 323.1 |
Long-term debt, net | 1,651.5 | 2,051.5 |
Financing obligations, net | 114.5 | 117.6 |
Operating lease liabilities | 234.1 | 182.2 |
Deferred tax liabilities | 474 | 459.3 |
Other long-term liabilities | 44.3 | 39 |
Total liabilities | 2,846.4 | 3,172.7 |
Commitments and contingencies (Note 17) | ||
Equity: | ||
Preferred stock, $0.01 par value, 13.3 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 133.3 shares authorized, 32.1 and 31.5 shares issued and 29.4 and 28.8 shares outstanding | 0.3 | 0.3 |
Additional paid-in capital | 1,818.2 | 1,796.9 |
Accumulated deficit | (277.5) | (351.2) |
Accumulated other comprehensive loss | (107) | (109.7) |
Treasury stock, at cost, 2.7 shares and 2.7 shares | (692) | (692) |
Total equity | 742 | 644.3 |
Total liabilities and equity | $ 3,588.4 | $ 3,817 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 15.5 | $ 18.8 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 13,300,000 | 13,300,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 133,300,000 | 133,300,000 |
Common stock, shares issued (in shares) | 32,100,000 | 31,500,000 |
Common stock, shares outstanding (in shares) | 29,400,000 | 28,800,000 |
Treasury Stock, shares (in shares) | 2,700,000 | 2,700,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Revenues | $ 1,781.3 | $ 1,999 | $ 1,976.7 |
Expenses: | |||
Direct operating | 689.2 | 771.1 | 785.2 |
Depreciation of rental equipment | 403.9 | 409.1 | 387.5 |
Cost of sales of rental equipment | 203.6 | 243.2 | 244.3 |
Cost of sales of new equipment, parts and supplies | 20.5 | 33.3 | 37.7 |
Selling, general and administrative | 257.4 | 294.8 | 311.3 |
Restructuring | 0.7 | 7.7 | 5 |
Impairment | 15.4 | 5.1 | 0.1 |
Interest expense, net | 92.6 | 173.5 | 137 |
Other expense (income), net | 3.9 | (2.4) | (0.2) |
Total expenses | 1,687.2 | 1,935.4 | 1,907.9 |
Income before income taxes | 94.1 | 63.6 | 68.8 |
Income tax benefit (provision) | (20.4) | (16.1) | 0.3 |
Net income | $ 73.7 | $ 47.5 | $ 69.1 |
Weighted average shares outstanding: | |||
Basic (in shares) | 29.1 | 28.7 | 28.4 |
Diluted (in shares) | 29.4 | 29.1 | 28.9 |
Earnings per share: | |||
Basic (in USD per share) | $ 2.53 | $ 1.66 | $ 2.43 |
Diluted (in USD per share) | $ 2.51 | $ 1.63 | $ 2.39 |
Equipment rental | |||
Revenues: | |||
Revenues | $ 1,543.7 | $ 1,701.8 | $ 1,658.3 |
Sales of rental equipment | |||
Revenues: | |||
Revenues | 198.5 | 242.8 | 256.2 |
Sales of new equipment, parts and supplies | |||
Revenues: | |||
Revenues | 28.2 | 44 | 49.3 |
Service and other revenue | |||
Revenues: | |||
Revenues | $ 10.9 | $ 10.4 | $ 12.9 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 73.7 | $ 47.5 | $ 69.1 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 3.7 | 11.5 | (20) |
Reclassification of foreign currency items to other expense (income), net | 2.1 | 0 | 0 |
Unrealized gains and (losses) on hedging instruments: | |||
Gain on settlement | 0 | (3.6) | 1.5 |
Reclassification into net income | (1.5) | 0 | 0 |
Income tax benefit (provision) related to hedging instruments | 0.3 | 2.1 | (0.4) |
Pension and postretirement benefit liability adjustments: | |||
Amortization of net losses and settlement losses included in net periodic pension cost | 1.7 | 1.9 | 1.9 |
Pension and postretirement benefit liability adjustments arising during the period | (3.2) | 3.3 | (5.6) |
Income tax benefit (provision) related to pension and postretirement plans | (0.4) | (2.5) | 1 |
Total other comprehensive income (loss) | 2.7 | 12.7 | (21.6) |
Total comprehensive income | $ 76.4 | $ 60.2 | $ 47.5 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Cumulative effect, period of adoption, adjustment | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative effect, period of adoption, adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative effect, period of adoption, adjustment | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2017 | 28,300,000 | ||||||||
Beginning balance at Dec. 31, 2017 | $ 510.4 | $ 0 | $ 0.3 | $ 1,763.1 | $ (462.4) | $ 2.2 | $ (98.6) | $ (2.2) | $ (692) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 69.1 | 69.1 | |||||||
Total reclassifications for the period | (21.6) | (21.6) | |||||||
Net settlement on vesting of equity awards / restricted stock (in shares) | 100,000 | ||||||||
Net settlement on vesting of equity awards / restricted stock | (1.1) | (1.1) | |||||||
Stock-based compensation charge | 13.4 | 13.4 | |||||||
Employee stock purchase charges | 2 | 2 | |||||||
Exercise of stock options (in shares) | 100,000 | ||||||||
Exercise of stock options | 0.5 | 0.5 | |||||||
Ending balance (in shares) at Dec. 31, 2018 | 28,500,000 | ||||||||
Ending balance at Dec. 31, 2018 | 572.7 | $ (7.6) | $ 0.3 | 1,777.9 | (391.1) | $ (7.6) | (122.4) | (692) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 47.5 | 47.5 | |||||||
Total reclassifications for the period | 12.7 | 12.7 | |||||||
Net settlement on vesting of equity awards / restricted stock (in shares) | 300,000 | ||||||||
Net settlement on vesting of equity awards / restricted stock | (3.7) | (3.7) | |||||||
Stock-based compensation charge | 19.5 | 19.5 | |||||||
Employee stock purchase charges | 2.4 | 2.4 | |||||||
Exercise of stock options | 0.8 | 0.8 | |||||||
Ending balance (in shares) at Dec. 31, 2019 | 28,800,000 | ||||||||
Ending balance at Dec. 31, 2019 | 644.3 | $ 0.3 | 1,796.9 | (351.2) | (109.7) | (692) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 73.7 | 73.7 | |||||||
Total reclassifications for the period | 2.7 | 2.7 | |||||||
Net settlement on vesting of equity awards / restricted stock (in shares) | 300,000 | ||||||||
Net settlement on vesting of equity awards / restricted stock | (3) | (3) | |||||||
Stock-based compensation charge | 16.4 | 16.4 | |||||||
Employee stock purchase charges | $ 2.3 | 2.3 | |||||||
Exercise of stock options (in shares) | 165,327 | 300,000 | |||||||
Exercise of stock options | $ 5.6 | 5.6 | |||||||
Ending balance (in shares) at Dec. 31, 2020 | 29,400,000 | ||||||||
Ending balance at Dec. 31, 2020 | $ 742 | $ 0.3 | $ 1,818.2 | $ (277.5) | $ (107) | $ (692) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 73.7 | $ 47.5 | $ 69.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of rental equipment | 403.9 | 409.1 | 387.5 |
Depreciation of property and equipment | 54.5 | 54 | 51.9 |
Amortization of intangible assets | 8 | 7 | 5.4 |
Amortization of deferred debt and financing obligations costs | 3.4 | 5.2 | 6.3 |
Loss on extinguishment of debt | 0 | 5.4 | |
Stock-based compensation charges | 16.4 | 19.5 | 13.4 |
Restructuring | 0 | 5.5 | 0 |
Impairment | 15.4 | 5.1 | 0.1 |
Provision for receivables allowance | 31.4 | 48.2 | 57.8 |
Deferred taxes | 11.9 | 10.7 | (10.5) |
Loss (gain) on sale of rental equipment | 5.1 | 0.4 | (11.9) |
Other | (4.7) | 1.8 | (0.5) |
Changes in assets and liabilities: | |||
Receivables | (24.6) | (38.3) | (29.9) |
Other assets | (7.9) | 4.1 | 1.8 |
Accounts payable | (6.4) | (12.9) | (1.7) |
Accrued liabilities and other long-term liabilities | 21.4 | 18.7 | 13.9 |
Net cash provided by operating activities | 610.9 | 635.6 | 559.1 |
Cash flows from investing activities: | |||
Rental equipment expenditures | (344.1) | (638.4) | (771.4) |
Proceeds from disposal of rental equipment | 192.5 | 224.2 | 272.3 |
Non-rental capital expenditures | (41.4) | (56.9) | (77.6) |
Proceeds from disposal of property and equipment | 6.6 | 7.7 | 9.7 |
Acquisitions | (45.6) | (4.2) | 0 |
Proceeds from disposal of business | 24.5 | 0 | 0 |
Other investing activities | 0 | 4 | 0 |
Net cash used in investing activities | (207.5) | (463.6) | (567) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 0 | 1,200 | 0 |
Repayments of long-term debt | 0 | (864.5) | (123.5) |
Proceeds from revolving lines of credit and securitization | 528 | 1,230 | 737.5 |
Repayments on revolving lines of credit and securitization | (924.7) | (1,664.8) | (604) |
Proceeds from financing obligations | 0 | 4.7 | 6.4 |
Principal payments under finance lease and financing obligations | (13.9) | (17.2) | (17) |
Debt redemption premium payment | 0 | (41.5) | (3.7) |
Payment of financing obligation and debt financing costs | (0.3) | (13.3) | (1.3) |
Proceeds from exercise of stock options | 5.6 | 0.8 | 0.5 |
Proceeds from employee stock purchase plan | 2.3 | 2.4 | 2 |
Net settlement on vesting of equity awards | (3) | (3.7) | (1.1) |
Net cash used in financing activities | (406) | (167.1) | (4.2) |
Effect of foreign exchange rate changes on cash and cash equivalents | 2.6 | 0.3 | (1.6) |
Net increase (decrease) in cash and cash equivalents during the period | 0 | 5.2 | (13.7) |
Cash and cash equivalents at beginning of period | 33 | 27.8 | 41.5 |
Cash and cash equivalents at end of period | 33 | 33 | 27.8 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 92.4 | 130.6 | 129.3 |
Cash paid for income taxes, net | 5 | 7.9 | 13.4 |
Supplemental disclosures of non-cash investing activity: | |||
Purchases of rental equipment in accounts payable | 4 | 0 | 0 |
Non-rental capital expenditures in accounts payable | 1.3 | 2.8 | 0 |
Disposals of property and equipment in accounts receivable | 0 | 2.4 | 0 |
Note receivable on disposal of joint venture | 0 | 19 | 0 |
Supplemental disclosures of non-cash investing and financing activity: | |||
Equipment acquired through finance leases | $ 1.4 | $ 39.1 | $ 2.6 |
Background
Background | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | Background Herc Holdings Inc. ("Herc Holdings" or the "Company") is one of the leading equipment rental suppliers with 277 locations in North America as of December 31, 2020. The Company conducts substantially all of its operations through subsidiaries, including Herc Rentals Inc. ("Herc"). With over 55 years of experience, the Company is a full-line equipment rental supplier offering a broad portfolio of equipment for rent. In addition to its principal business of equipment rental, the Company sells used equipment and contractor supplies such as construction consumables, tools, small equipment and safety supplies; provides repair, maintenance, equipment management services and safety training to certain of its customers; offers equipment re-rental services and provides on-site support to its customers; and provides ancillary services such as equipment transport, rental protection, cleaning, refueling and labor. The Company's classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction and lighting. The Company's equipment rental business is supported by ProSolutions R , its industry-specific solutions-based services, which includes power generation, climate control, remediation and restoration, pumps, and studio and production equipment, and its ProContractor professional grade tools. |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Recently Issued Accounting Pronouncements | Basis of Presentation and Recently Issued Accounting Pronouncements Basis of Presentation The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include receivables allowances, depreciation of rental equipment, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill and trade name, pension and postretirement benefits, valuation of stock-based compensation, reserves for litigation and other contingencies and accounting for income taxes. Principles of Consolidation The consolidated financial statements include the accounts of Herc Holdings and its wholly owned subsidiaries. In the event that the Company is a primary beneficiary of a variable interest entity, the assets, liabilities and results of operations of the variable interest entity are included in the Company's consolidated financial statements. All significant intercompany transactions have been eliminated in consolidation. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three months or less. Concentration of Credit Risk The Company's cash and cash equivalents are held in checking accounts, various investment grade institutional money market accounts or bank term deposits. Deposits held at banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate such risks by spreading the risk across multiple counterparties and monitoring the risk profiles of these counterparties. In addition, the Company has credit risk from financial instruments used in hedging activities, when appropriate. The Company limits its exposure relating to financial instruments by diversifying the financial instruments among various counterparties, which consist of major financial institutions. No single customer accounted for more than 3% of the Company’s equipment rental revenue during the years ended December 31, 2020, 2019 and 2018. As of December 31, 2020 and 2019, no single customer accounted for more than 5% of accounts receivable. Receivables Receivables are stated net of allowances and represent credit extended to customers and manufacturers that satisfy defined credit criteria. The estimate of the allowance for doubtful accounts is based on the Company's historical experience and its judgment as to the likelihood of ultimate collection. Actual receivables are written-off against the allowance for doubtful accounts when the Company determines the balance will not be collected. Estimates for future credit memos are based on historical experience and are reflected as reductions to revenue, while the provision for bad debt for rental transactions is reflected as a component of "Selling, general and administrative expenses" in the Company's consolidated statements of operations. Rental Equipment Rental equipment is stated at cost, net of related discounts, with holding periods ranging from one year to 15 years. Generally, when rental equipment is acquired, the Company estimates the period that it will hold the asset, primarily based on historical measures of the amount of rental activity (e.g. equipment usage) and the targeted age of equipment at the time of disposal. The Company also estimates the residual value of the applicable rental equipment at the expected time of disposal. The residual value for rental equipment is affected by factors which include equipment age and amount of usage. Depreciation is recorded over the estimated holding period. Depreciation rates are reviewed on a quarterly basis based on management's ongoing assessment of present and estimated future market conditions, their effect on residual values at the time of disposal and the estimated holding periods. Market conditions for used equipment sales can also be affected by external factors such as the economy, natural disasters, fuel prices, supply of similar used equipment, the market price for similar new equipment and incentives offered by manufacturers of new equipment. These key factors are considered when estimating future residual values and assessing depreciation rates. As a result of this ongoing assessment, the Company makes periodic adjustments to depreciation rates of rental equipment in response to changed market conditions. Property and Equipment Property and equipment are stated at cost and are depreciated utilizing the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the estimated useful lives of the related assets or leases, whichever is shorter. Useful lives are as follows: Buildings 8 to 33 years Service vehicles 3 to 13 years Machinery and equipment 1 to 15 years Computer equipment 1 to 5 years Furniture and fixtures 2 to 10 years Leasehold improvements The lesser of the asset life or expected lease term including lease extension options. The Company follows the practice of charging routine maintenance and repairs, including the cost of minor replacements, to maintenance expense. Costs of major replacements are capitalized and depreciated. Leases Leases are classified as either finance or operating at inception of the lease, with classification affecting the pattern of expense recognition in the income statement. Operating and finance leases result in the recognition of right-of-use ("ROU") assets and lease liabilities on the balance sheet. ROU assets represent the Company's right to use the leased asset for the lease term and lease liabilities represent the obligation to make lease payments. The liability is calculated as the present value of the remaining minimum lease payments for existing operating leases using either the rate implicit in the lease or, if none exists, the Company's incremental borrowing rate. Operating lease cost is recorded on a straight-line basis over the remaining lease term. Finance lease cost includes amortization of the ROU assets on a straight-line basis and interest on the lease liabilities using the effective interest method. In certain instances, the Company may sell property and enter into an arrangement to lease the property back from the landlord. In these instances, the Company performs a sale-leaseback analysis to determine if the assets can be removed from the balance sheet. If certain criteria are met, the Company recognizes the transaction as a sale, removes the assets from its balance sheet and reflects the future lease payments as rent expense. If the criteria for sale is not met, such as available repurchase options or continuing involvement with the property, the Company is considered the owner for accounting purposes. In these instances, the Company is precluded from derecognizing the assets from its balance sheet and will continue to depreciate the assets over the expected lease term. In conjunction with these arrangements, the Company records a financing obligation equal to the cash proceeds or fair market value of the assets received from the landlord. Lease payments for these properties are recognized as interest expense and a reduction of the financing obligation using the effective interest method. At the end of the lease term, including exercise of any renewal options, the net remaining financing obligation over the net carrying value of the fixed asset will be recognized as a non-cash gain on sale of the property. Public Liability and Property Damage The obligation for public liability and property damage on self-insured equipment represents an estimate for both reported accident claims not yet paid, and claims incurred but not yet reported. The related liabilities are recorded on a non-discounted basis. Reserve requirements are based on actuarial evaluations of historical accident claim experience and trends, as well as future projections of ultimate losses, expenses, premiums and administrative costs. The adequacy of the liability is regularly monitored based on evolving accident claim history and insurance-related state legislation changes. If the Company's estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. Reserves for Claims The Company is exposed to various claims relating to our business, including those for which we provide self-insurance. Claims for which we self-insure include: (i) workers compensation claims; (ii) general liability claims by third parties for injury or property damage caused by our equipment or personnel; (iii) automobile liability claims; and (iv) employee health insurance claims. These types of claims may take a substantial amount of time to resolve and, accordingly, the ultimate liability associated with a particular claim, including claims incurred but not reported as of a period-end reporting date, may not be known for an extended period of time. The Company's methodology for developing self-insurance reserves is based on management estimates and independent third party actuarial estimates. The estimation process considers, among other matters, the cost of known claims over time, cost inflation and incurred but not reported claims. These estimates may change based on, among other things, changes in the Company's claim history or receipt of additional information relevant to assessing the claims and the amount of the recorded liability is adjusted to reflect these changes. The long-term portion of our self-insurance reserves is included in "Other long-term liabilities" in the consolidated balance sheet. Defined Benefit Pension Plans and Other Employee Benefits The Company's employee pension costs and obligations are developed from actuarial valuations. Inherent in these valuations are key assumptions, including discount rates, salary growth, long-term return on plan assets, retirement rates, mortality rates and other factors. The selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by actuaries. However, actual results may differ substantially from the estimates that were based on the assumptions. The Company uses a December 31 measurement date for all of the plans. Actual results that differ from the Company's assumptions are accumulated and amortized over future periods and, therefore, generally affect its recognized expense in such future periods. While management believes that the assumptions used are appropriate, significant differences in actual experience or significant changes in assumptions would affect the Company's pension costs and obligations. Foreign Currency Translation and Transactions Assets and liabilities of international subsidiaries whose functional currency is the local currency are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average exchange rates throughout the year. The related translation adjustments are reflected in “Accumulated other comprehensive income (loss)” in the equity section of the Company's consolidated balance sheets. Foreign currency gains and losses resulting from transactions are included in earnings. Financial Instruments The Company is exposed to a variety of market risks, including the effects of changes in interest rates and foreign currency exchange rates. The Company manages exposure to these market risks through ongoing processes to monitor the impact of market changes and, when deemed appropriate, through the use of financial instruments. Financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes. The Company accounts for all derivatives in accordance with U.S. GAAP, which requires that they be recorded on the balance sheet as either assets or liabilities measured at their fair value. For financial instruments that are designated and qualify as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as either a fair value hedge or a cash flow hedge. The effective portion of changes in fair value of financial instruments designated as cash flow hedging instruments is recorded as a component of other comprehensive income (loss). Amounts included in accumulated other comprehensive income (loss) for cash flow hedges are reclassified into earnings in the same period that the hedged item is recognized in earnings. The ineffective portion of changes in the fair value of financial instruments designated as cash flow hedges is recognized currently in earnings within the same line item as the hedged item, based upon the nature of the hedged item. For financial instruments that are not part of a qualified hedging relationship, the changes in their fair value are recognized currently in earnings. Business Combinations The Company has made acquisitions and may continue to make acquisitions in the future. The assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition. Long-lived assets (principally rental equipment), goodwill and other intangible assets generally represent the largest components of the acquisitions. Rental equipment is valued utilizing either a cost, market or income approach, or a combination of certain of these methods, depending on the asset being valued and the availability of market or income data. The intangible assets that the Company has acquired are non-compete agreements, customer relationships and trade names and associated trademarks. The estimated fair values of these intangible assets reflect various assumptions about discount rates, revenue growth rates, operating margins, terminal values, useful lives and other prospective financial information. Goodwill is calculated as the excess of the cost of the acquired entity over the net of the fair value of the assets acquired and the liabilities assumed. Non-compete agreements, customer relationships and trade names and associated trademarks are valued based on an excess earnings or income approach based on projected cash flows and may be amortized over the useful life if they are determined to be finite-lived intangible assets. Determining the fair value of the assets and liabilities acquired is judgmental in nature and can involve the use of significant estimates and assumptions. As part of an acquisition, the Company will also acquire other assets and assume liabilities. These other assets and liabilities typically include, but are not limited to, parts inventory, accounts receivable, accounts payable and other working capital items. Because of their short-term nature, the fair values of these other assets and liabilities generally approximate the book values on the acquired entities' balance sheets. Goodwill and Indefinite-Lived Intangible Assets On an annual basis and at interim periods when circumstances require, the Company tests the recoverability of its goodwill. The analysis is conducted as of October 1 each year. The Company has one reporting unit and compares the carrying value of its reporting unit to its fair value. If the carrying value of the reporting unit is greater than its fair value, the Company recognizes an impairment charge for the amount equal to that excess. The Company may first assess qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. If a quantitative impairment test is performed, the fair value of the reporting unit is estimated using a combination of an income approach on the present value of estimated future cash flows and a market approach based on published earnings multiples of comparable entities with similar operations and economic characteristics as well as acquisition multiples paid in recent transactions. The Company’s discounted cash flows are based upon reasonable and appropriate assumptions, which are weighted for their likely probability of occurrence, about the underlying business activities of the Company. Indefinite-lived intangible assets, primarily our trade name, are not amortized but are evaluated annually for impairment and whenever events or changes in circumstances indicate that the carrying amount of this asset may exceed its fair value. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment charge is recognized in an amount equal to that excess. Finite-Lived Intangible and Long-Lived Assets Intangible assets include technology, customer relationships and other intangibles. Intangible assets with finite lives are amortized over the estimated economic lives of the assets, which range from three Long-lived assets, or disposal groups comprising assets and liabilities, that are expected to be recovered primarily through sale rather than through continuing use are classified as assets held for sale. Upon designation as an asset held for sale, the carrying value of each long-lived asset or disposal group is recorded at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and depreciation expense is no longer recorded. Revenue Recognition The Company is principally engaged in the business of renting equipment. Ancillary to the Company’s principal equipment rental business, the Company also sells used rental equipment, new equipment and parts and supplies and offers certain services to support its customers. The Company’s rental transactions are accounted for under ASC Topic 842, Leases, ("Topic 842"). Prior to the adoption of Topic 842 on January 1, 2019, the Company accounted for these transactions under ASC Topic 840, Leases , ("Topic 840"). Equipment rental revenue includes revenue generated from renting equipment to customers, including re-rent revenue, and is recognized on a straight-line basis over the length of the rental contract. Other equipment rental revenues include fees for the Company's rental protection program and environmental charges and are recognized on a straight-line basis over the length of the rental contract. The Company’s sale of rental and new equipment, parts and supplies along with certain services provided to customers are recognized under ASC Topic 606, Revenue from Contracts with Customers, ("Topic 606") which was adopted on January 1, 2018. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for such products or services. See Note 3, "Revenue Recognition" for further discussion of our revenue accounting. Advertising Advertising and sales promotion costs are expensed the first time the advertising or sales promotion takes place. Advertising costs are reflected as a component of "Selling, general and administrative" expense in the Company's consolidated statements of operations. For the years ended December 31, 2020, 2019 and 2018 advertising costs were $2.2 million, $2.7 million and $1.0 million, respectively. Stock Based Compensation Under the Company's stock based compensation plans, certain employees and members of the Company's board of directors have received grants of restricted stock units, performance stock units and stock options for Herc Holdings common stock. The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost is recognized over the period during which the employee is required to provide service in exchange for the award. The Company estimates the fair value of stock options issued at the date of grant using a Black-Scholes option-pricing model, which includes assumptions related to volatility, expected term, dividend yield and risk-free interest rate. The Company accounts for restricted stock unit and performance stock unit awards as equity classified awards. For restricted stock units, the expense is based on the grant date fair value of the stock and the number of shares that vest, recognized over the service period. For performance stock units, the expense is based on the grant date fair value of the stock, recognized over a service period depending upon the applicable performance condition. For performance stock units, the Company re-assesses the probability of achieving the applicable performance condition each reporting period and adjusts the recognition of expense accordingly. Income Taxes The Company applies the provisions of ASC Topic 740, Income Taxes, ("Topic 740"), and computes the provision for income taxes on a Separate Return Basis. Under Topic 740, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and tax bases of assets and liabilities and are measured using the enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. The Company records valuation allowances to reduce its deferred tax assets by the amount that is more likely than not to be realized. Subsequent changes to enacted tax rates and changes in the interpretations thereof will result in deferred taxes and changes to any related valuation allowances. Provisions are not made for income taxes on undistributed earnings of international subsidiaries that are intended to be indefinitely reinvested outside of the United States or are expected to be remitted free of taxes. Future distributions, if any, from these international subsidiaries to the United States or changes in U.S. tax rules may require a charge to reflect tax on these amounts. In accordance with Topic 740, the Company recognizes, in its consolidated financial statements, the impact of the Company's tax positions that are more likely than not to be sustained upon examination. The Company will determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority with full knowledge of all relevant information. Upon determination that a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements. The Company recognizes interest and penalties for uncertain tax positions in income tax expense. The Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act"), had a substantial impact on the income tax benefit for the year ended December 31, 2018. See Note 15, "Income Taxes" for further detail. Impacts of COVID-19 In December 2019, a novel strain of coronavirus ("COVID-19") was identified in China and has since spread globally. In March 2020, the World Health Organization characterized COVID-19 as a pandemic. Federal, state and local efforts to contain the spread of COVID-19 intensified in March 2020 when most states in the United States, including Florida where the Company is headquartered, enacted shelter in place orders, declared states of emergency, took steps to restrict travel, enacted temporary closures of non-essential businesses and took other restrictive measures in response to the COVID-19 pandemic. The Company's business was deemed essential and was allowed to remain open, however, many industries in which its customers operate were required to temporarily close their facilities or delay or cancel projects and events. The Company reduced its capital spending during 2020 and, where possible, reduced operating expenses while ensuring ongoing safe and reliable operations. Additionally, as the timing and extent of the removal of these measures and the residual economic impact of the pandemic remains unclear, the Company is currently experiencing a year-over-year decrease in volume of fleet on rent and this reduction in volume is likely to have a negative impact on equipment rental revenue. The impact of the COVID-19 pandemic continues to evolve as state and local governments are re-opening businesses in multiple phases and, in certain jurisdictions, reversing re-opening decisions. Therefore, we cannot predict the extent to which our financial condition, results of operations or cash flows will ultimately be impacted. Recently Issued Accounting Pronouncements Adopted Fair Value Measurement In August 2018, the Financial Accounting Standards Board ("FASB") issued new guidance that modifies disclosure requirements on fair value measurements, removing and modifying certain disclosures, while adding other disclosures. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company adopted the new guidance on its effective date and it did not have a material impact on its financial statement disclosures. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued guidance that requires companies to present assets held at amortized cost and available for sale debt securities net of the amount expected to be collected. The guidance requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectibility. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 with early adoption permitted. Different components of the guidance require modified retrospective or prospective adoption. This guidance does not apply to receivables arising from operating leases and, as discussed in Note 3, "Revenue Recognition," most of the Company's equipment rental revenue is accounted for as lease revenue under Topic 842. The Company adopted this guidance on its effective date and there was no material impact on its financial position, results of operations or cash flows. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued guidance that simplifies the accounting for income taxes. The guidance removes the following exceptions: (i) exceptions to the approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, (ii) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, (iii) 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 (iv) 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: (i) 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, (ii) 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, (iii) 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), (iv) 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 (v) 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 Company early adopted this guidance on January 1, 2020 and there was no material impact on its financial position, results of operations or cash flows. Compensation - Retirement Benefits In August 2018, the FASB issued guidance that adds, removes, and modifies disclosure requirements related to defined benefit pension and other postretirement plans in order to improve the disclosure effectiveness. The guidance is effective for fiscal years beginning after December 15, 2020 and should be applied on a retrospective basis to all periods presented. The Company early adopted this guidance on December 31, 2020 as permitted, and there was no impact the Company's financial position, results of operations or cash flows. See Note 13, "Employee Retirement Benefits" for revised disclosures in accordance with this guidance. Not Yet Adopted Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company is principally engaged in the business of renting equipment. Ancillary to the Company’s principal equipment rental business, the Company also sells used rental equipment, new equipment and parts and supplies and offers certain services to support its customers. The Company operates in North America with revenue from the United States representing approximately 91.5%, 89.9% and 88.9% of total revenue for the years ended December 31, 2020, 2019 and 2018, respectively. The Company’s rental transactions are accounted for under Topic 842. Prior to the adoption of Topic 842, the Company accounted for rental transactions under Topic 840. The Company’s sale of rental and new equipment, parts and supplies along with certain services provided to customers are accounted for under Topic 606. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for such products or services. The following table summarizes the applicable accounting guidance for the Company’s revenues (in millions): Years Ended December 31, 2020 2019 2018 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Topic 840 Topic 606 Total Revenues: Equipment rental $ 1,401.1 $ — $ 1,401.1 $ 1,549.9 $ — $ 1,549.9 $ 1,509.7 $ — $ 1,509.7 Other rental revenue: Delivery and pick-up — 86.7 86.7 — 98.0 98.0 — 88.4 88.4 Other 55.9 — 55.9 53.9 — 53.9 60.2 — 60.2 Total other rental revenues 55.9 86.7 142.6 53.9 98.0 151.9 60.2 88.4 148.6 Total equipment rentals 1,457.0 86.7 1,543.7 1,603.8 98.0 1,701.8 1,569.9 88.4 1,658.3 Sales of rental equipment — 198.5 198.5 — 242.8 242.8 — 256.2 256.2 Sales of new equipment, parts and supplies — 28.2 28.2 — 44.0 44.0 — 49.3 49.3 Service and other revenues — 10.9 10.9 — 10.4 10.4 — 12.9 12.9 Total revenues $ 1,457.0 $ 324.3 $ 1,781.3 $ 1,603.8 $ 395.2 $ 1,999.0 $ 1,569.9 $ 406.8 $ 1,976.7 Topic 842 revenues Equipment Rental Revenue The Company offers a broad portfolio of equipment for rent on a daily, weekly or monthly basis, with most rental agreements cancelable upon the return of the equipment. Virtually all customer contracts can be canceled by the customer with no penalty by returning the equipment within one day; therefore, the Company does not allocate the transaction price between the different contract elements. Equipment rental revenue includes revenue generated from renting equipment to customers and is recognized on a straight-line basis over the length of the rental contract. As part of this straight-line methodology, when the equipment is returned, the Company recognizes 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, the Company will have customers return equipment and be contractually required to pay more than the cumulative amount of revenue recognized to date under the straight-line methodology. Also included in equipment rental revenue is re-rent revenue in which the Company will rent specific pieces of equipment from vendors and then re-rent that equipment to its customers. Provisions for discounts, rebates to customers and other adjustments are provided for in the period the related revenue is recorded. Other Other equipment rental revenue is primarily comprised of fees for the Company’s rental protection program and environmental charges. Fees paid for the rental protection program allow customers to limit the risk of financial loss in the event the Company’s equipment is damaged or lost. Fees for the rental protection program and environmental recovery fees are recognized on a straight-line basis over the length of the rental contract. Topic 606 revenues Delivery and pick-up Delivery and pick-up revenue associated with renting equipment is recognized when the services are performed. Sales of Rental Equipment, New Equipment, Parts and Supplies The Company sells its used rental equipment, new equipment, parts and supplies. Revenues recorded for each category are as follows (in millions): Years Ended December 31, 2020 2019 2018 Sales of rental equipment $ 198.5 $ 242.8 $ 256.2 Sales of new equipment 11.5 21.0 21.3 Sales of parts and supplies 16.7 23.0 28.0 Total $ 226.7 $ 286.8 $ 305.5 The Company recognizes revenue from rental equipment, new equipment, parts and supplies when control of the asset transfers to the customer, which is typically when the asset is picked up by or delivered to the customer and when significant risks and rewards of ownership have passed to the customer. Sales and other tax amounts collected from customers and remitted to government authorities are accounted for on a net basis and, therefore, excluded from revenue. The Company routinely sells its used rental equipment in order to manage repair and maintenance costs, as well as the composition, age and size of its fleet. The Company disposes of used equipment through a variety of channels including retail sales to customers and other third parties, sales to wholesalers, brokered sales and auctions. The Company also sells new equipment, parts and supplies. The types of new equipment that the Company sells vary by location and include a variety of ProContractor tools and supplies, small equipment (such as work lighting, generators, pumps, compaction equipment and power trowels), safety supplies and expendables. Under Topic 606, the accounts receivable balance, prior to allowances for doubtful accounts, for the sale of rental equipment, new equipment, parts and supplies, was approximately $13.8 million and $15.6 million as of December 31, 2020 and 2019, respectively. Service and other revenues Service and other revenues primarily include revenue earned from equipment management and similar services for rental customers which includes providing customer support functions such as dedicated in-plant operations, plant management services, training, and repair and maintenance services particularly to industrial customers who request such services. The Company recognizes revenue for service and other revenues as the services are provided. Service and other revenues are typically invoiced together with a customer’s rental amounts and, therefore, it is not practical for the Company to separate the accounts receivable amount related to services and other revenues that are accounted for under Topic 606; however, such amount is not considered material. Receivables and contract assets and liabilities Most of the Company's 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 the Company's equipment. Concentration of credit risk with respect to the Company's accounts receivable is limited because a large number of geographically diverse customers makes up its customer base. No single customer makes up more than 3% of the Company's equipment rental revenue or more than 5% of its accounts receivable balance for the last three years. The Company manages credit risk associated with its accounts receivable at the customer level through credit approvals, credit limits and other monitoring procedures. The Company maintains allowances for doubtful accounts that reflect the Company's estimate of the amount of receivables that the Company will be unable to collect based on its historical write-off experience. The Company does not have material contract assets or contract liabilities associated with customer contracts. The Company's contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. The Company did not recognize material revenue during the years ended December 31, 2020, 2019 or 2018 that was included in the contract liability balance as of the beginning of such period. Performance obligations Most of the Company's revenue recognized under Topic 606 is recognized at a point-in-time, rather than over time. Accordingly, in any particular period, the Company does not generally recognize a significant amount of revenue from performance obligations satisfied (or partially satisfied) in previous periods, and the amount of such revenue recognized during the years ended December 31, 2020, 2019 and 2018 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 December 31, 2020. Contract estimates and judgments The Company's revenues accounted for under Topic 606 generally do not require significant estimates or judgments, primarily for the following reasons: • The transaction price is generally fixed and stated on the Company's contracts; • As noted above, the Company's contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation; • The Company's revenues do not include material amounts of variable consideration; and • Most of the Company's 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, the revenue recognized under Topic 606 is generally recognized at the time of delivery to, or pick-up by, the customer. The Company monitors and reviews its estimated standalone selling prices on a regular basis. |
Rental Equipment
Rental Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Rental Equipment [Abstract] | |
Rental Equipment | Rental Equipment Rental equipment consists of the following (in millions): December 31, 2020 December 31, 2019 Rental equipment $ 3,613.5 $ 3,821.6 Less: Accumulated depreciation (1,353.1) (1,331.6) Rental equipment, net $ 2,260.4 $ 2,490.0 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following (in millions): December 31, 2020 December 31, 2019 Land and buildings $ 117.3 $ 116.1 Service vehicles 278.7 305.3 Leasehold improvements 105.8 94.3 Machinery and equipment 23.6 23.3 Computer equipment and software 75.9 64.9 Furniture and fixtures 15.6 15.1 Construction in progress 7.2 9.4 Property and equipment, gross 624.1 628.4 Less: accumulated depreciation (333.7) (316.6) Property and equipment, net $ 290.4 $ 311.8 Depreciation expense for the years ended December 31, 2020, 2019 and 2018 was $54.5 million, $54.0 million and $51.9 million, respectively. Depreciation expense for property and equipment is included in "Direct operating" and "Selling, general and administrative" expenses in the Company's consolidated statements of operations. The Company leases certain of its service vehicles and office equipment under finance leases. Depreciation of assets held under finance leases is included in depreciation expense. The gross amounts of property and equipment and related depreciation recorded under finance leases, included in the table above, were as follows (in millions): December 31, 2020 December 31, 2019 Service vehicles $ 72.7 $ 101.8 Furniture and fixtures 0.7 1.0 73.4 102.8 Less: accumulated depreciation (32.6) (46.2) $ 40.8 $ 56.6 The Company has entered into financing obligations to lease certain of its properties as discussed further in Note 12, "Financing Obligations." Depreciation of assets held under financing obligations is included in depreciation expense. The gross amounts of land, building and leasehold improvements and related depreciation recorded under financing obligations, included in the table above, were as follows (in millions): December 31, 2020 December 31, 2019 Land, building and leasehold improvements $ 77.4 $ 77.4 Less: accumulated depreciation (38.7) (36.1) $ 38.7 $ 41.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The Company performed its annual goodwill impairment test as of October 1 and determined that no impairment existed for the years ended December 31, 2020 and 2019. The following summarizes the Company's goodwill (in millions): Years Ended December 31, 2020 2019 Balance at the beginning of the period: Goodwill $ 768.5 $ 765.9 Accumulated impairment losses (674.9) (674.9) 93.6 91.0 Additions 6.9 2.6 Balance at the end of the period: Goodwill 775.4 768.5 Accumulated impairment losses (674.9) (674.9) $ 100.5 $ 93.6 Intangible Assets The Company performed its annual impairment test of indefinite-lived and finite-lived intangible assets as of October 1 and determined that no impairment existed for the years ended December 31, 2020 and 2019. Intangible assets, net, consisted of the following major classes (in millions): December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Value Finite-lived intangible assets: Customer-related and non-compete agreements $ 18.7 $ (10.0) $ 8.7 Internally developed software (a) 39.9 (23.3) 16.6 Total 58.6 (33.3) 25.3 Indefinite-lived intangible assets: Trade name 270.6 — 270.6 Total intangible assets, net $ 329.2 $ (33.3) $ 295.9 (a) Includes capitalized costs of $1.2 million yet to be placed into service. December 31, 2019 Gross Carrying Accumulated Net Carrying Value Finite-lived intangible assets: Customer-related $ 11.4 $ (8.9) $ 2.5 Internally developed software (a) 34.9 (16.4) 18.5 Total 46.3 (25.3) 21.0 Indefinite-lived intangible assets: Trade name 270.5 — 270.5 Total intangible assets, net $ 316.8 $ (25.3) $ 291.5 (a) Includes capitalized costs of $1.4 million yet to be placed into service. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination In December 2020, the Company completed the acquisition of Champion Rentals, Inc. ("Champion"). Champion was a full-service general equipment rental company comprising approximately 100 employees and four locations serving contractors and industrial, manufacturing and government customers in the Houston metropolitan area. The acquisition of Champion expands the Company's Houston-area presence to 12 physical locations, which collectively provide general and specialty equipment rental solutions and related services. The aggregate consideration paid was approximately $47.9 million and is subject to a potential working capital adjustment within 180 days of closing. The acquisition and related fees and expenses were funded through cash on hand. The following table summarizes the purchase price allocation of the assets acquired and liabilities assumed (in millions): Accounts receivable $ 3.4 Other current assets 0.3 Rental equipment 28.3 Property and equipment 2.1 Intangibles (a) 7.3 Total identifiable assets acquired 41.4 Current liabilities 0.4 Net identifiable assets acquired 41.0 Goodwill (b) 6.9 Net assets acquired $ 47.9 (a) The following table reflects the fair values and useful lives of the acquired intangible assets identified (in millions): Fair value Life (years) Customer relationships $ 7.1 14 Non-compete agreements 0.2 5 $ 7.3 (b) The level of goodwill that resulted from the acquisition is primarily reflective of Champion's going-concern value, the value of Champion's assembled workforce, new customer relationships expected to arise from the acquisition and operational synergies that the Company expects to achieve that are not associated with identifiable assets. All of the goodwill is expected to be deductible for income tax purposes. The assets and liabilities were recorded as of December 30, 2020 and the results of operations will be included in the Company's consolidated results of operations as of that date. Pro-forma operating results, as if the Company had completed the acquisition at the beginning of the periods presented, are not significant to the Company's consolidated statements of operations and are not presented. |
Assets Held for Sale and Impair
Assets Held for Sale and Impairments | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill, Impaired [Abstract] | |
Assets Held for Sale and Impairments | Assets Held for Sale and ImpairmentsIn December 2020, the Company performed an impairment assessment of certain rental equipment and recorded an impairment charge of $4.8 million. Additionally, the Company recorded an impairment charge of $1.1 million related to a financial reporting and consolidation system that was replaced during the fourth quarter of 2020. In September 2020, the Company closed on the sale of two branches and realized a loss on the sale of $0.2 million that was recorded in "Other income (expense), net" in the Company's consolidated statements of operations. In June 2020, the Company had reclassified the assets of these branches to assets held for sale and in connection therewith, an impairment analysis was performed and an impairment charge of approximately $1.5 million was recorded at June 30, 2020. During June 2020, the Company recorded a right-of-use ("ROU") asset impairment charge of $1.7 million related to two leased locations that were closed during the second quarter of 2019. See Note 9, "Leases" for additional information on the restructuring charges taken in the prior year related to the closures. During March 2020, the Company recorded an impairment charge of $6.3 million on a long-term receivable related to a previous joint venture sale, the remaining balances of $4.0 million and $8.7 million are included in "Other current assets" and "Other long-term assets," respectively, in the consolidated balance sheets. As of December 31, 2019, the Company's assets held for sale consisted of the net assets of its remaining international operations outside of North America. In connection with the reclassification of the assets held for sale, an impairment analysis was performed and an impairment charge of approximately $4.0 million was recorded during the year ended December 31, 2019. In April 2020, the Company closed on the sale, which was comprised of six locations, for total proceeds of $24.5 million and realized a loss on the sale of $2.8 million that was recorded in "Other income (expense), net" in the consolidated statements of operations. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company leases real estate, office equipment and service vehicles. The Company's leases have remaining lease terms of up to 18 years, some of which include options to extend the leases for up to 20 years. The Company has included the initial lease term and, in the case where there are options to extend, will include the option to extend if it has determined that it reasonably certain that the Company would exercise those options. The Company also leases certain equipment that it rents to its customers where the payments vary based upon the amount of time the equipment is on rent. There are no fixed payments on these leases and, therefore, no lease liability or ROU assets have been recorded. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term. The Company adopted Topic 842 on its effective date of January 1, 2019 using a modified retrospective transition approach; as such, Topic 842 was not applied to periods prior and the adoption had no impact on the Company's previously reported results. The components of lease expense consist of the following (in millions): Years Ended December 31, Classification 2020 2019 Operating lease cost (a) Direct operating $ 83.1 $ 100.1 Finance lease cost: Amortization of ROU assets Depreciation and amortization (b) 11.1 12.5 Interest on lease liabilities Interest expense, net 1.5 1.7 Sublease income Equipment rental revenue (46.6) (67.2) Net lease cost $ 49.1 $ 47.1 (a) Includes short-term leases of $31.4 million and $54.6 million for the year ended December 31, 2020 and December 31, 2019, respectively, and variable lease costs of $5.2 million and $4.3 million for the year ended December 31, 2020 and December 31, 2019, respectively. (b) Depreciation and amortization is included with selling, general and administrative expense. During 2019, the Company entered into a plan of restructuring with respect to certain branches in Canada. As part of the plan, certain of its leased locations were closed and the Company recorded a ROU asset impairment of $4.8 million. Additionally, the Company recorded related leasehold improvement impairments of $0.7 million and severance charges of $2.2 million. Balance sheet information related to leases consists of the following (in millions): Classification December 31, 2020 December 31, 2019 Assets Operating lease ROU assets Right-of-use assets $ 255.9 $ 207.3 Finance lease ROU assets Property and equipment, net (a) 40.8 56.6 Total leased assets $ 296.7 $ 263.9 Liabilities Current Operating Current maturities of operating lease liabilities $ 32.1 $ 30.5 Finance Current maturities of long-term debt and financing obligations 12.2 21.8 Non-current Operating Operating lease liabilities 234.1 182.2 Finance Long-term debt, net 28.6 34.4 Total lease liabilities $ 307.0 $ 268.9 (a) Finance lease right-of-use assets are recorded net of accumulated amortization of $32.6 million and $46.2 million for the year ended December 31, 2020 and December 31, 2019, respectively. December 31, 2020 Weighted average remaining lease term: Operating leases 10.6 Finance leases 5.6 Weighted average discount rate: Operating leases 3.41 % Finance leases 3.24 % Cash flow information related to leases consists of the following (in millions): Years Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 35.5 $ 37.9 Operating cash flows from finance leases 1.5 1.7 Financing cash flows from finance leases 10.8 14.2 Right-of-use assets obtained in exchange for lease obligations: Operating leases 144.4 76.3 Finance leases 1.4 39.1 Maturities of lease liabilities are as follows (in millions): Operating Leases Finance Leases 2021 $ 39.5 $ 13.0 2022 40.0 6.7 2023 35.8 6.5 2024 32.5 6.2 2025 26.9 6.2 After 2026 140.0 5.2 Total lease payments 314.7 43.8 Less: Interest (48.5) (3.0) Present value of lease liabilities $ 266.2 $ 40.8 |
Leases | Leases The Company leases real estate, office equipment and service vehicles. The Company's leases have remaining lease terms of up to 18 years, some of which include options to extend the leases for up to 20 years. The Company has included the initial lease term and, in the case where there are options to extend, will include the option to extend if it has determined that it reasonably certain that the Company would exercise those options. The Company also leases certain equipment that it rents to its customers where the payments vary based upon the amount of time the equipment is on rent. There are no fixed payments on these leases and, therefore, no lease liability or ROU assets have been recorded. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term. The Company adopted Topic 842 on its effective date of January 1, 2019 using a modified retrospective transition approach; as such, Topic 842 was not applied to periods prior and the adoption had no impact on the Company's previously reported results. The components of lease expense consist of the following (in millions): Years Ended December 31, Classification 2020 2019 Operating lease cost (a) Direct operating $ 83.1 $ 100.1 Finance lease cost: Amortization of ROU assets Depreciation and amortization (b) 11.1 12.5 Interest on lease liabilities Interest expense, net 1.5 1.7 Sublease income Equipment rental revenue (46.6) (67.2) Net lease cost $ 49.1 $ 47.1 (a) Includes short-term leases of $31.4 million and $54.6 million for the year ended December 31, 2020 and December 31, 2019, respectively, and variable lease costs of $5.2 million and $4.3 million for the year ended December 31, 2020 and December 31, 2019, respectively. (b) Depreciation and amortization is included with selling, general and administrative expense. During 2019, the Company entered into a plan of restructuring with respect to certain branches in Canada. As part of the plan, certain of its leased locations were closed and the Company recorded a ROU asset impairment of $4.8 million. Additionally, the Company recorded related leasehold improvement impairments of $0.7 million and severance charges of $2.2 million. Balance sheet information related to leases consists of the following (in millions): Classification December 31, 2020 December 31, 2019 Assets Operating lease ROU assets Right-of-use assets $ 255.9 $ 207.3 Finance lease ROU assets Property and equipment, net (a) 40.8 56.6 Total leased assets $ 296.7 $ 263.9 Liabilities Current Operating Current maturities of operating lease liabilities $ 32.1 $ 30.5 Finance Current maturities of long-term debt and financing obligations 12.2 21.8 Non-current Operating Operating lease liabilities 234.1 182.2 Finance Long-term debt, net 28.6 34.4 Total lease liabilities $ 307.0 $ 268.9 (a) Finance lease right-of-use assets are recorded net of accumulated amortization of $32.6 million and $46.2 million for the year ended December 31, 2020 and December 31, 2019, respectively. December 31, 2020 Weighted average remaining lease term: Operating leases 10.6 Finance leases 5.6 Weighted average discount rate: Operating leases 3.41 % Finance leases 3.24 % Cash flow information related to leases consists of the following (in millions): Years Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 35.5 $ 37.9 Operating cash flows from finance leases 1.5 1.7 Financing cash flows from finance leases 10.8 14.2 Right-of-use assets obtained in exchange for lease obligations: Operating leases 144.4 76.3 Finance leases 1.4 39.1 Maturities of lease liabilities are as follows (in millions): Operating Leases Finance Leases 2021 $ 39.5 $ 13.0 2022 40.0 6.7 2023 35.8 6.5 2024 32.5 6.2 2025 26.9 6.2 After 2026 140.0 5.2 Total lease payments 314.7 43.8 Less: Interest (48.5) (3.0) Present value of lease liabilities $ 266.2 $ 40.8 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consists of the following (in millions): December 31, 2020 December 31, 2019 Accrued compensation and benefit costs $ 33.4 $ 26.8 Rebate accrual 31.9 33.6 Taxes payable 29.1 16.0 Accrued interest 31.3 32.2 Customer related deferrals 13.5 11.3 Insurance reserves 7.8 9.2 Other 7.3 6.6 Total accrued liabilities $ 154.3 $ 135.7 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's debt consists of the following (in millions): Weighted Average Effective Interest Rate at December 31, 2020 Weighted Average Stated Interest Rate at December 31, 2020 Fixed or Floating Interest Rate Maturity December 31, December 31, Senior Notes 2027 Notes 5.61% 5.50% Fixed 2027 $ 1,200.0 $ 1,200.0 Other Debt ABL Credit Facility N/A 1.56% Floating 2024 255.0 650.0 AR Facility N/A 1.03% Floating 2021 175.0 175.0 Finance lease liabilities 3.24% N/A Fixed 2021-2027 40.8 56.2 Other borrowings N/A NA NA NA — 5.2 Unamortized Debt Issuance Costs (a) (7.1) (7.9) Total debt 1,663.7 2,078.5 Less: Current maturities of long-term debt (12.2) (27.0) Long-term debt, net $ 1,651.5 $ 2,051.5 (a) Unamortized debt issuance costs totaling $7.1 million and $9.3 million related to the ABL Credit Facility and AR Facility (as each is defined below) as of December 31, 2020 and December 31, 2019 are included in "Other long-term assets" in the consolidated balance sheets. The effective interest rates for the fixed rate 2027 Notes (as defined below) includes the stated interest on the notes and the amortization of any debt issuance costs. Maturities The nominal principal amounts of maturities of debt for each of the periods ending December 31 are as follows (in millions): 2021 $ 12.2 2022 5.8 2023 5.9 2024 435.8 2025 6.0 After 2025 1,205.1 Total $ 1,670.8 The Company's liquidity needs arise from the funding of its costs of operations and capital expenditures and from debt service on its indebtedness. The Company believes that cash generated from operations and cash received from the disposal of rental and other equipment, together with amounts available under its senior secured asset-based revolving credit facility (the "ABL Credit Facility") and AR Facility (as defined below) will be adequate to permit the Company to meet its obligations over the next 12 months. Senior Notes On July 9, 2019, the Company issued $1.2 billion aggregate principal amount of its 5.50% Senior Notes due 2027 (the “2027 Notes”). Interest on the 2027 Notes accrues at the rate of 5.50% per annum and is payable semi-annually in arrears on January 15 and July 15. The 2027 Notes will mature on July 15, 2027. Ranking; Guarantees The 2027 Notes are the Company’s senior unsecured obligations, ranking equally in right of payment with all of the Company’s existing and future senior indebtedness, effectively junior to any of the Company’s existing and future secured indebtedness, including the ABL Credit Facility, to the extent of the value of the assets securing such indebtedness, and senior in right of payment to any of the Company’s existing and future subordinated indebtedness. The 2027 Notes will be guaranteed on a senior unsecured basis, subject to limited exceptions including special purpose securitization subsidiaries, by the Company’s current and future domestic subsidiaries. Redemption The Company may redeem the 2027 Notes, in whole or in part, at any time prior to July 15, 2022, at a price equal to 100% of the aggregate principal amount thereof, plus the applicable make-whole premium and accrued and unpaid interest, if any, to, but excluding, the redemption date. The Company may redeem the 2027 Notes, in whole or in part, at any time (i) on or after July 15, 2022 and prior to July 15, 2023, at a price equal to 102.750% of the principal amount of the 2027 Notes, (ii) on or after July 15, 2023 and prior to July 15, 2024, at a price equal to 101.833% of the principal amount of the 2027 Notes, (iii) on or after July 15, 2024 and prior to July 15, 2025, at a price equal to 100.917% of the principal amount of the 2027 Notes and (iv) on or after July 15, 2025, at a price equal to 100.000% of the principal amount of the 2027 Notes, in each case, plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date. In addition, at any time on or prior to July 15, 2022, the Company may, at its option, redeem up to 40% of the original aggregate principal amount of the 2027 Notes with the proceeds of one or more equity offerings at a redemption price of 105.500% of the principal amount of the 2027 Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. Covenants The indenture governing the 2027 Notes contains certain covenants applicable to the Company and its restricted subsidiaries, including limitations on liens, indebtedness, mergers, consolidations and acquisitions, sales, transfers and other dispositions of assets, loans and other investments, dividends and other distributions, stock repurchases and redemptions and other restricted payments, restrictions affecting subsidiaries, transactions with affiliates and designations of unrestricted subsidiaries. Upon the occurrence of certain events constituting a change of control triggering event, the Company is required to make an offer to repurchase all of the 2027 Notes (unless otherwise redeemed) at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any to (but excluding) the repurchase date. If the Company sells assets under certain circumstances, it must use the proceeds to make an offer to purchase the 2027 Notes at a price equal to 100% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. Events of Default The indenture also provides for customary events of default, including the following (subject to any applicable cure period): nonpayment, breach of covenants in the indenture, payment defaults under or acceleration of certain other indebtedness, failure to discharge certain judgments and certain events of bankruptcy, insolvency and reorganization. If an event of default occurs or is continuing, the trustee or the holders of at least 30% in aggregate principal amount of the 2027 Notes then outstanding may declare the principal of, premium, if any, and accrued and unpaid interest, if any, to be due and payable immediately. ABL Credit Facility On July 31, 2019, Herc Holdings, Herc and certain other subsidiaries of Herc Holdings entered into a credit agreement with respect to a senior secured asset-based revolving credit facility. The ABL Credit Facility provides (subject to availability under a borrowing base) for aggregate maximum borrowings of up to $1,750 million under a revolving loan facility. Up to $250 million of the revolving loan facility is available for the issuance of letters of credit, subject to certain conditions including issuing lender participation. Subject to the satisfaction of certain conditions and limitations, the ABL Credit Facility allows for the addition of incremental revolving commitments and/or incremental term loans. Maturity The ABL Credit Facility matures on July 31, 2024. Guarantees; Collateral/Security The obligations of each of the borrowers under the ABL Credit Facility are guaranteed by each of Herc Holdings’ direct and indirect U.S. and Canadian subsidiaries, with certain exceptions, including special purpose securitization subsidiaries. The obligations of the borrowers under the ABL Credit Facility and the guarantees thereof are secured by security interests in substantially all of the assets of each borrower and guarantor, including pledges of all the capital stock of all of their direct subsidiaries, with certain exceptions. The liens securing the ABL Credit Facility are subject to certain exceptions. Also, subject to certain limitations and conditions, the ABL Credit Facility permits the incurrence of future secured debt on a basis either pari passu with, or subordinated to, the liens securing the ABL Credit Facility. Interest The interest rates applicable to any loans under the ABL Credit Facility are based, at the option of the borrowers, on (i) a floating rate based on LIBOR (for loans denominated in U.S. dollars) or CDOR (for loans denominated in Canadian dollars) plus an initial margin of 1.50% per annum or (ii) a base rate plus an initial margin of 0.50%, in each case, where margin is adjusted under the ABL Credit Facility based on the quarterly average excess availability under the ABL Credit Facility. Covenants The ABL Credit Facility contains a number of covenants that, among other things, limit or restrict the ability of the borrowers and their subsidiaries to incur additional indebtedness, prepay other indebtedness, make dividends and other restricted payments, create or incur liens, make acquisitions and other investments, engage in mergers, consolidations or sales of assets, engage in certain transactions with affiliates, and enter into certain restrictive agreements limiting the ability to create or incur liens. In addition, under the ABL Credit Facility, upon excess availability falling below certain levels, the borrowers will be required to comply with a minimum fixed charge coverage ratio of no less than 1.00:1.00. As of December 31, 2020, the appropriate levels of liquidity have been maintained, therefore this financial maintenance covenant is not applicable. Events of Default The ABL Credit Facility provides that the occurrence of any of the following events will constitute an event of default: payment default, breach of representation or warranty, covenant breach, cross default to other material indebtedness, certain bankruptcy events, dissolution, invalidity of the credit agreement or any intercreditor agreement (if any), judgment in excess of a certain monetary threshold, any security or guarantee documents cease to be in effect, an ERISA event, pension event or a change of control. Upon the occurrence and during the continuation of an event of default, the agent may exercise remedies on behalf of the lenders, including accelerating the repayment of outstanding loans under the ABL Credit Facility. Accounts Receivable Securitization Facility In September 2018, the Company entered into an accounts receivable securitization facility (the "AR Facility") with aggregate commitments of $175 million. The AR Facility was amended in September 2020 to extend the maturity date to August 31, 2021. In connection with the AR Facility, Herc and one of its wholly-owned subsidiaries sell their accounts receivables on an ongoing basis to Herc Receivables U.S. LLC, a wholly-owned special-purpose entity (the "SPE"). The SPE's sole business consists of the purchase by the SPE of accounts receivable from Herc and the Herc subsidiary seller and borrowing by the SPE against the eligible accounts receivable from the lenders under the facility. The borrowings are secured by liens on the accounts receivable and other assets of the SPE. Collections on the accounts receivable are used to service the borrowings. The SPE is a separate legal entity that is consolidated in the Company's financial statements. The SPE assets are owned by the SPE and are not available to settle the obligations of the Company or any of its other subsidiaries. Herc is the servicer of the accounts receivable under the AR Facility. All of the obligations of the Herc subsidiary seller and the servicer and certain indemnification obligations of the SPE under the agreements governing the AR Facility are guaranteed by Herc pursuant to a performance guarantee. The AR Facility is excluded from current maturities of long-term debt as the Company has the intent and ability to consummate refinancing and extend the term of the agreement. The agreements governing the AR Facility contain restrictions and covenants which include limitations applicable to Herc, the Herc subsidiary seller and the SPE on the creation of certain liens, and restrictions and covenants which include limitations applicable to the SPE on the making of certain restricted payments, and limitations applicable to Herc and the SPE with respect to certain corporate acts such as mergers, consolidations and the sale of substantially all assets, with certain exceptions. The Company was in compliance with all such covenants as of December 31, 2020. The financing agreement with the lenders provides for customary events of default (subject to customary exceptions, thresholds and grace periods) including, without limitation, failure to perform covenants, ineffectiveness of transaction documents, invalidity of security interests or failure to cooperate in the administrative agent's assumption of control of accounts, material inaccuracy of representations or warranties, failure of certain ratios related to the accounts receivables, specified cross default and cross acceleration to other material indebtedness, certain bankruptcy events, certain ERISA events, material judgments, material adverse effect and change in control. Other Borrowings The Company's former subsidiary in China had uncommitted credit agreements for up to an aggregate principal amount of $10.0 million. Interest accrued on the loans drawn under these facilities at an applicable loan prime rate plus 0.535% published by National Interbank Funding Center and was payable quarterly. In conjunction with the sale of the Company's subsidiary in China in April 2020, the credit agreement was terminated and no borrowings were outstanding at December 31, 2020. Borrowing Capacity and Availability After outstanding borrowings, the following was available to the Company as of December 31, 2020 (in millions): Remaining Availability Under ABL Credit Facility $ 1,471.6 $ 1,380.3 AR Facility — — Total $ 1,471.6 $ 1,380.3 At December 31, 2020, the Company's borrowing base was capped at $175.0 million by the aggregate commitments under the AR Facility. |
Financing Obligations
Financing Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Financing Obligations | Financing Obligations In October 2017, Herc consummated a sale-leaseback transaction pursuant to which it sold 42 of its properties located in the U.S. for gross proceeds of approximately $119.5 million, and during the fourth quarter of 2018, entered into sale-leaseback transactions with respect to two additional properties for gross proceeds of $6.4 million. Herc entered into a master lease agreement pursuant to which it has continued operations at those properties as a tenant. The triple net lease agreement has an initial term of 20 years, subject to extension, at Herc's option, for up to five additional periods of five years each. The sale of the properties did not qualify for sale-leaseback accounting due to continuing involvement with the properties. Therefore, the book value of the buildings and land remains on the Company's consolidated balance sheet. During March 2019, Herc entered into a sale-leaseback transaction for certain service vehicles that did not qualify for sale-leaseback accounting, therefore the book value of the vehicles remains on the Company's consolidated balance sheet. Gross proceeds from the sale-leaseback transaction were $4.7 million. In connection with these transactions, the Company capitalized $2.9 million in deferred financing obligations issuance costs. The costs are being amortized to interest expense using the effective interest method. Interest expense related to the amortization of these costs for the year ended December 31, 2020, 2019 and 2018 was $0.5 million, $0.4 million and $0.2 million, respectively. The Company's financing obligations consist of the following (in millions): Weighted Average Effective Interest Rate at December 31, 2020 Maturity December 31, 2020 December 31, 2019 Financing obligations 5.11% 2026-2038 $ 120.5 $ 123.5 Unamortized financing issuance costs (2.4) (2.5) Total financing obligations 118.1 121.0 Less: Current maturities of financing obligations (3.6) (3.4) Financing obligations, net $ 114.5 $ 117.6 As of December 31, 2020, future minimum financing payments for the agreements referred to above are as follows (in millions): 2021 $ 9.5 2022 9.5 2023 9.5 2024 9.5 2025 9.5 Thereafter 103.4 Total minimum financing obligations payments 150.9 Obligations subject to non-cash gain on future sale of property 34.6 Less amount representing interest (at a weighted-average interest rate of 5.11%) (65.0) Total financing obligations $ 120.5 |
Employee Retirement Benefits
Employee Retirement Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefits | Employee Retirement Benefits 401(k) Savings Plan and Other Defined Contribution Plan On July 1, 2016, the Company established the Herc Holdings Savings Plan covering all of its U.S. employees. Contributions to the plans are made by both the employee and the Company. Company contributions to these plans are based on the level of employee contributions and formulas determined by the Company. Expenses for the defined contribution plans for the years ended December 31, 2020, 2019 and 2018 were approximately $10.9 million, $11.4 million and $10.5 million, respectively. Defined Benefit Pension and Postretirement Plans In July 2016, the Company established the Herc Holdings Retirement Plan (the "Plan"), a U.S. qualified pension plan. The Plans assets and liabilities attributable to current and former employees of the equipment rental business were transferred to the Plan following the Spin-Off. The Plan has been frozen to new participants since it was established. Postretirement benefits, other than pensions, provide healthcare benefits, and in some instances, life insurance benefits for certain eligible retired employees in the U.S. The Company reflects the funded status of defined benefit pension and other postretirement benefit plans as an asset or liability. This amount is defined as the difference between the fair value of plan assets and the benefit obligation. The Company is required to recognize as a component of other comprehensive income (loss), net of tax, the actuarial gains/losses and prior service credits that arise but were not previously required to be recognized as components of net periodic benefit cost. Other comprehensive income (loss) is adjusted as these amounts are later recognized in the statement of operations as components of net periodic benefit cost. The Company’s policy for funded plans is to contribute, at a minimum, amounts required by applicable laws, regulations and union agreements. The Plan represents approximately 99% of the Company's defined benefit plan obligations and 100% of its plan assets. The Company made contributions to the Plan of $2.5 million and $2.8 million in 2020 and 2019, respectively however, no cash contribution was made in 2018. The level of future contributions will vary and is dependent on a number of factors including investment returns, interest rate fluctuations, plan demographics, funding regulations and the results of the final actuarial valuation. Additionally, pursuant to various collective bargaining agreements, certain union-represented employees participate in multiemployer pension plans. The following table provides a reconciliation of benefit obligations and plan assets of the Company’s pension plans and postretirement benefit plans (in millions): Pension Postretirement 2020 2019 2020 2019 Change in Projected Benefit Obligations Benefit obligations at beginning of year $ 163.5 $ 148.5 $ 1.0 $ 1.0 Interest cost 5.1 6.2 — — Plan settlements (8.0) (6.3) — — Benefits paid (0.3) (0.4) — — Actuarial (gain) loss 16.5 15.5 0.1 — Benefit obligations at end of year $ 176.8 $ 163.5 $ 1.1 $ 1.0 Change in Fair Value of Plan Assets Fair value of plan assets at beginning of year $ 143.7 $ 123.6 $ — $ — Actual return on plan assets 19.6 24.0 — — Employer contribution 2.5 2.8 — — Plan settlements (8.0) (6.3) — — Benefits paid (0.3) (0.4) — — Fair value of plan assets at end of year $ 157.5 $ 143.7 $ — $ — Funded Status $ (19.3) $ (19.8) $ (1.1) $ (1.0) Accumulated benefit obligations $ 176.8 $ 163.5 Pension Postretirement 2020 2019 2020 2019 Amounts Recognized in Balance Sheet Accrued liabilities $ (0.1) $ (0.1) $ (0.1) $ (0.1) Other long-term liabilities (19.2) (19.7) (1.0) (0.9) Net amount recognized $ (19.3) $ (19.8) $ (1.1) $ (1.0) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial gain (loss) $ (21.7) $ (20.3) $ 0.2 $ 0.2 Prior service credits 0.1 0.1 — — Net amount recognized $ (21.6) $ (20.2) $ 0.2 $ 0.2 Weighted‑Average Assumptions Used to Determine Projected Benefit Obligations Discount rate 2.3 % 3.2 % 2.2 % 3.2 % Average rate of increase in compensation — % — % — % — % Interest credit rate 3.8 % 3.8 % — % — % Initial healthcare cost trend rate N/A N/A 5.5 % 5.8 % Ultimate healthcare cost trend rate N/A N/A 4.5 % 4.5 % The benefit obligations and fair value of plan assets for the Company’s qualified and non-qualified pension and postretirement plans with projected benefit obligations or accumulated benefit obligations in excess of plan assets are as follows (in millions): Pension Postretirement 2020 2019 2020 2019 Plans with Benefit Obligations in Excess of Plan Assets Projected benefit obligations $ 176.8 $ 163.5 $ 1.1 $ 1.0 Accumulated benefit obligations 176.8 163.5 — — Fair value of plan assets 157.5 143.7 — — The following table sets forth the net periodic pension cost (benefit) (in millions): Years Ended December 31, 2020 2019 2018 Components of Net Periodic Pension Cost (Benefit): Interest cost $ 5.1 $ 6.2 $ 5.7 Expected return on plan assets (6.1) (5.2) (6.0) Net amortization of actuarial net loss 0.7 1.1 0.7 Settlement loss 1.0 0.8 1.2 Net periodic pension cost (benefit) $ 0.7 $ 2.9 $ 1.6 Weighted‑Average Assumptions Used to Determine Net Periodic Pension Cost (Benefit) Discount rate 3.2 % 4.3 % 3.6 % Expected return on assets 5.2 % 5.8 % 5.6 % Average rate of increase in compensation — % — % — % Interest credit rate 3.8 % 3.8 % 3.8 % The net periodic postretirement cost was immaterial in 2020, 2019 and 2018. The discount rate reflects the rate the Company would have to pay to purchase high-quality investments that would provide cash sufficient to settle its current pension obligations. The discount rate is determined based on a range of factors, including the rates of return on high-quality, fixed-income corporate bonds and the related expected duration of the obligations. The discount rate for the Plan is based on the rate from the Mercer Pension Discount Curve-Above Mean Yield that is appropriate for the duration of the obligations. The discount rate used to measure the pension obligation at the end of the year is also used to measure pension cost in the following year. The expected return on plan assets for the U.S. qualified plan is based on expected future investment returns considering the target investment mix of plan assets. It reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the projected benefit obligations. In determining the expected long-term rate of return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. There was no average rate of increase in compensation for 2020, 2019 or 2018 as there are no longer any employees in the Plan accruing benefits. The ultimate healthcare cost trend rates for the postretirement benefit plans are expected to be reached in 2038. Plan Assets The Company has a long-term investment outlook for its Plan assets, which is consistent with the long-term nature of the Plan's respective liabilities. The Plan currently has a target asset allocation of 30% equity and 70% fixed income. The equity portion of the assets is actively managed in U.S. small/mid cap and international funds and a small allocation to a passively managed U.S. large cap index fund. The fixed income portion of the assets is actively managed in long/intermediate duration government/credit funds and small allocations to an actively managed high yield fund, a bank loan fund, a preferred securities fund and an emerging market debt fund. A modest amount of cash is maintained to facilitate payment of benefits and plan expenses. The fair value measurements of most plan assets are based upon significant other observable inputs (Level 2), except for the high yield mutual fund and cash which are based upon quoted market prices in active markets for identical assets (Level 1). The following represents the Company's pension plan assets (in millions): Asset Category December 31, 2020 December 31, 2019 Cash $ 3.0 $ 2.3 Short Term Investments 1.5 0.1 Equity Securities: U.S. Large Cap 19.4 20.0 U.S. Mid Cap 3.5 4.6 U.S. Small Cap 0.5 1.2 International Developed 17.9 18.6 International Emerging Markets 6.5 6.9 Fixed Income Securities: U.S. Treasuries 22.9 22.2 Corporate Bonds 49.8 41.5 Government Bonds 10.3 9.9 Municipal Bonds 3.1 2.8 Mortgage-Backed Securities 2.3 2.9 Asset-Backed Securities 2.1 2.5 Bank Loans 7.4 7.1 Preferreds 7.3 — Other — 1.1 Total fair value of pension plan assets $ 157.5 $ 143.7 Estimated Future Benefit Payments The following table presents estimated future benefit payments (in millions): Pension Postretirement 2021 $ 7.0 $ 0.1 2022 7.2 0.1 2023 8.3 0.1 2024 9.5 0.1 2025 10.4 0.1 2026-2030 63.9 0.3 $ 106.3 $ 0.8 Multiemployer Pension Plans The Company contributes to several multiemployer defined benefit pension plans under collective bargaining agreements that cover certain union represented employees. The risks of participating in such plans are different from the risks of single-employer plans, in the following respects: (a) Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (b) If a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (c) If the Company ceases to have an obligation to contribute to the multiemployer plan in which the Company had been a contributing employer, the Company may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of the Company's participation in the plan prior to the cessation of its obligation to contribute. The amount that an employer that has ceased to have an obligation to contribute to a multiemployer plan is required to pay to the plan is referred to as a withdrawal liability. The Company's participation in multiemployer plans is outlined in the table below. For plans that are not individually significant to the Company, the total amount of contributions is presented in the aggregate. There are no plans where the amount contributed by the Company represents more than 5% of the total contributions to the plan for the years ended December 31, 2020, 2019 and 2018. (In millions) EIN / Pension Pension FIP / Contributions Surcharge Imposed Expiration Pension Fund 2020 2019 2020 2019 2018 Midwest Operating Engineers 36-6140097 Green Green N/A $ 0.9 $ 1.0 $ 0.9 N/A 5/31/2021 Other Plans (a) 1.1 1.2 1.1 Total contributions $ 2.0 $ 2.2 $ 2.0 (a) Consists of six plans, none of which are individually significant to the Company. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based CompensationOn May 17, 2018, the Herc Holdings Inc. 2018 Omnibus Incentive Plan (the "2018 Omnibus Plan") was approved and replaced the Herc Holdings Inc. 2008 Omnibus Incentive Plan. The 2018 Omnibus Plan provides for grants of both equity and cash awards, including non-qualified stock options, incentive stock options, stock appreciation rights, performance awards (shares and units), restricted awards (shares and units) and deferred stock units to key executives, employees, non-management directors and non-employee consultants. The total number of common shares authorized for issuance under the 2018 Omnibus Plan is 2,200,000, of which approximately 1,579,000 remains available as of December 31, 2020 for future incentive awards. Stock-based compensation awards are measured on their grant date using a fair value method and are recognized in the statement of operations over the requisite service period. The Company's stock-based compensation expense is included in “Selling, general and administrative” expense in the Company's consolidated statements of operations. The following table summarizes the expenses and associated income tax benefits recognized (in millions): Year Ended December 31, 2020 2019 2018 Compensation expense $ 16.4 $ 19.5 $ 13.4 Income tax benefit (4.2) (5.1) (3.5) Total $ 12.2 $ 14.4 $ 9.9 As of December 31, 2020, there was $18.8 million of total unrecognized compensation cost related to non-vested stock options, restricted stock units ("RSUs") and performance stock units ("PSUs"). The total unrecognized compensation cost is expected to be recognized over the remaining 1.7 years, on a weighted average basis, of the requisite service period that began on the grant dates. Stock Options All stock options granted had a per-share exercise price of not less than the fair market value of one share of common stock on the grant date. Stock options vest based on a minimum period of service or the occurrence of events (such as a change in control, as defined in the 2018 Omnibus Plan). No stock options are exercisable after ten years from the grant date. The Company’s practice is to grant stock options at fair market value. Outstanding options vest over four years with terms of seven years to 10 years, assuming continued employment with certain exceptions. Vesting of the option awards is contingent upon meeting certain service conditions. The fair value of option grants is estimated using the Black-Scholes option pricing model. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term which approximates the expected life assumed at the date of grant. The compensation expense recognized for all stock-based awards is net of estimated forfeitures. Forfeitures were estimated based on an analysis of actual option forfeitures. There were no stock options granted during 2020, 2019 or 2018. A summary of option activity is presented below. Options Weighted Weighted Aggregate Intrinsic (a) Outstanding at December 31, 2019 342,498 $ 37.94 Granted — — Exercised (165,327) 33.51 Forfeited or expired (21,580) 46.99 Outstanding at December 31, 2020 155,591 $ 41.38 Expected to Vest at December 31, 2020 — $ — — $ — Exercisable at December 31, 2020 155,591 $ 41.38 3.1 $ 3.9 (a) Market price per share on December 31, 2020 was $66.41. The intrinsic value is zero for options with exercise prices above market value. Stock options as of December 31, 2020: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Weighted Number Outstanding Weighted Weighted $30.01-40.00 111,006 33.19 2.6 111,006 33.19 2.6 40.01-50.00 629 43.59 0.2 629 43.59 0.2 50.01-60.00 29,892 58.22 4.5 29,892 58.22 4.5 70.01-80.00 14,064 70.14 4.2 14,064 70.14 4.2 155,591 $ 41.38 155,591 $ 41.38 Additional information pertaining to stock option activity under the Omnibus Plan is as follows (in millions): Year Ended December 31, 2020 2019 2018 Aggregate intrinsic value of stock options exercised (a) $ 3.7 $ 0.3 $ 0.5 Cash received from the exercise of stock options 5.6 0.8 0.5 Tax benefit realized on exercise of stock options 1.0 0.1 0.1 (a) The intrinsic value is the difference between the market value of the shares on the exercise date and the exercise price of the option. Performance Stock Units PSUs will vest based on the achievement of pre-determined performance goals over performance periods determined by the Company's Compensation Committee. Each of the units granted represent the right to receive one share of the Company's common stock on a specified future date. Compensation expense for PSUs is based on the grant date fair value and is recognized ratably over the three year vesting period. In addition to the service vesting condition, the PSUs have an additional vesting condition which stipulates the number of units to be awarded being based on the achievement of certain performance measures over the applicable measurement period and can range from 0% to 200% of the target. In the event of an employee's death or disability, a pro rata portion of the employee's PSUs will vest to the extent performance goals are achieved at the end of the performance period. A summary of the PSU activity is presented below. Units Weighted Nonvested at December 31, 2019 321,793 $ 48.91 Granted 181,693 38.56 Vested (143,696) 47.78 Performance change 49,716 48.33 Forfeited (18,741) 45.57 Nonvested at December 31, 2020 390,765 $ 44.60 The weighted average per share grant-date fair values of PSUs granted during 2020, 2019 and 2018 were $38.56, $40.79 and $64.51, respectively. The total fair value of PSUs that vested during 2020, 2019 and 2018 were $6.9 million, $3.4 million and $3.2 million, respectively. Almost all PSUs granted in 2020, 2019 and 2018 include vesting conditions based on the achievement of the Company's return on invested capital performance measured over a three Restricted Stock Units RSUs granted under the Omnibus Plan will vest based on a minimum period of service or the occurrence of events (such as a change in control, as defined in the Omnibus Plan) specified by the Compensation Committee. Compensation expense for RSUs is based on the grant date fair value and is recognized ratably over the vesting period which generally ranges from one year to three years. A summary of the RSU activity under the Omnibus Plan is presented below. Units Weighted Nonvested at December 31, 2019 411,069 $ 47.17 Granted 292,669 35.36 Vested (267,688) 46.41 Forfeited (23,296) 41.95 Nonvested at December 31, 2020 412,754 $ 39.65 The weighted average per share grant date fair values of RSUs granted during 2020, 2019 and 2018 were $35.36, $41.18 and $62.89, respectively. The total fair value of RSUs that vested during 2020, 2019 and 2018 was $12.4 million, $10.7 million and $3.0 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income (loss) before income taxes for the periods were as follows (in millions): Years Ended December 31, 2020 2019 2018 Domestic $ 95.5 $ 61.9 $ 60.5 Foreign (1.4) 1.7 8.3 Income before income taxes $ 94.1 $ 63.6 $ 68.8 The provision (benefit) for income taxes consists of the following (in millions): Years Ended December 31, 2020 2019 2018 Current: Federal $ — $ (1.4) $ 2.2 Foreign 1.8 3.5 1.9 State and local 6.1 3.7 5.5 Total current 7.9 5.8 9.6 Deferred: Federal 22.5 15.9 (7.0) Foreign (7.1) 0.4 (1.9) State and local (2.9) (6.0) (1.0) Total deferred 12.5 10.3 (9.9) Total income tax provision (benefit) $ 20.4 $ 16.1 $ (0.3) The principal items of the U.S. and foreign net deferred tax assets (liabilities) are as follows (in millions): December 31, 2020 December 31, 2019 Deferred tax assets: Employee benefit plans $ 5.3 $ 5.5 Tax credit carryforwards 0.5 2.1 Right-of-use assets 48.5 54.7 Accrued expenses 37.0 35.0 Net operating loss carryforwards 75.1 122.9 Total deferred tax assets 166.4 220.2 Less: valuation allowance (3.2) (9.0) Total net deferred tax assets 163.2 211.2 Deferred tax liabilities: Lease liabilities (46.4) (53.2) Outside basis difference in foreign subsidiaries and other (1.8) (2.0) Depreciation on tangible assets (517.4) (545.7) Intangible assets (71.6) (69.6) Total deferred tax liabilities (637.2) (670.5) Net deferred tax liability $ (474.0) $ (459.3) As of December 31, 2020, a deferred tax asset of $61.8 million was recorded for unutilized federal net operating loss carryforwards ("NOL carryforwards"). The total federal NOL carryforwards are $302.6 million and have an indefinite carryforward period. State NOL carryforwards have generated a deferred tax asset of $10.6 million and expire over various years beginning in 2021. As of December 31, 2020, deferred tax assets of $0.5 million were recorded for federal and various state tax credit carryforwards. As of December 31, 2020, deferred tax assets of $2.5 million were recorded for foreign NOL carryforwards of $15.5 million, all of which have an indefinite carryforward period. In determining the valuation allowance, an assessment of positive and negative evidence was performed regarding realization of the net deferred tax assets in accordance with Topic 740. This assessment included the evaluation of scheduled reversals of deferred tax liabilities, the availability of carryforwards and estimates of projected future taxable income. Based on the assessment, as of December 31, 2020, total valuation allowances of $3.2 million were recorded against deferred tax assets. Although realization is not assured, the Company has concluded that it is more likely than not the remaining deferred tax assets of $163.2 million will be realized and as such no valuation allowance has been provided on these assets. The income tax in the accompanying consolidated statements of operations differs from the income tax calculated by applying the statutory federal income tax rate to income (loss) before income taxes due to the following (in millions): Years Ended December 31, 2020 2019 2018 Income tax (benefit) provision at statutory rate $ 19.8 $ 13.3 $ 14.4 Increases (decreases) resulting from: Foreign taxes (0.1) 0.9 0.9 State and local income taxes, net of federal income tax 3.1 (3.7) 3.6 Federal and foreign 3.5 3.1 1.1 Enactment of the 2017 Tax Act (a) — — (20.8) Change in valuation allowance (5.8) 2.6 (1.5) Outside basis difference in foreign subsidiaries — (0.9) 0.9 All other items, net (0.1) 0.8 1.1 Income tax (benefit) provision $ 20.4 $ 16.1 $ (0.3) (a) In December 2017, the 2017 Tax Act was enacted and during the year ended December 31, 2018, the Company finalized its estimates and recorded a net benefit of $20.8 million comprised of (i) a $14.3 million expense related to the revaluation of the Company's net deferred tax liability based on a U.S. federal tax rate of 21% and (ii) a $35.1 million benefit related to the one-time transition tax on previously unrepatriated earnings from foreign operations. As a result of the 2017 Tax Act, previously undistributed earnings from foreign subsidiaries are deemed to have been repatriated as of December 31, 2017 for federal income tax purposes. Beginning in 2018, companies are generally able to repatriate earnings from foreign subsidiaries with no U.S. federal income tax impact. As of December 31, 2020, the Company continues to assert that earnings from foreign operations are not permanently invested. The Company, as a matter of policy, looks to repatriate foreign earnings in a tax efficient manner. Many foreign jurisdictions impose taxes on distributions to other jurisdictions. Due to the variations and complexities of these laws, the Company believes it would be impractical to calculate and accrue these taxes beyond the normal earnings and profits standard for U.S. tax purposes. As of December 31, 2020, the Company is maintaining the assertion that future earnings associated with the potential stock sale or liquidation of foreign subsidiaries are permanently reinvested. Accordingly, the Company has not recorded any deferred tax liabilities associated with these book-to-tax differences. The Company has analyzed the potential tax liability associated with these differences to be approximately $46.6 million. The total cumulative amount of unrecognized tax benefits is $2.7 million as of December 31, 2020. The Company conducts business globally and, as a result, files one or more income tax returns in the U.S. and non-U.S. jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The open tax years for these jurisdictions span from 2005 to 2018. The IRS completed its audit of the Company's 2007 to 2011 consolidated income tax returns, in which Herc was included, and had no changes to the previously filed tax returns. The Company is currently under audit for the 2014 through 2016 income tax years. Several U.S. state and non-U.S. jurisdictions are under audit. The Company does not expect any material assessments resulting from these audits. Reclassifications In February 2018, the FASB issued guidance that allows reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the 2017 Tax Act that would otherwise be stranded in accumulated other comprehensive income. This guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The Company has elected to early adopt this guidance and as a result has recorded an adjustment of $2.2 million to accumulated deficit as of January 1, 2018. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in the accumulated other comprehensive income (loss) balance by component (net of tax) are presented in the tables below (in millions): Pension and Other Post-Employment Benefits Unrealized Gains on Hedging Instruments Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2019 $ (16.0) $ 1.2 $ (94.9) $ (109.7) Other comprehensive income before reclassification (3.2) — 3.7 0.5 Amounts reclassified from accumulated other comprehensive loss 1.3 (1.2) 2.1 2.2 Net current period other comprehensive income (1.9) (1.2) 5.8 2.7 Balance at December 31, 2020 $ (17.9) $ — $ (89.1) $ (107.0) Pension and Other Post-Employment Benefits Unrealized Gains on Hedging Instruments Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2018 $ (18.7) $ 2.7 $ (106.4) $ (122.4) Other comprehensive income before reclassification 3.3 (1.5) 11.5 13.3 Amounts reclassified from accumulated other comprehensive loss (0.6) — — (0.6) Net current period other comprehensive income 2.7 (1.5) 11.5 12.7 Balance at December 31, 2019 $ (16.0) $ 1.2 $ (94.9) $ (109.7) Amounts reclassified from accumulated other comprehensive income (loss) to net income were as follows (in millions): Twelve Months Ended December 31, Pension and other postretirement benefit plans 2020 2019 2018 Statement of Operations Caption Amortization of actuarial losses $ 0.7 $ 1.1 $ 0.7 Selling, general and administrative Settlement loss 1.0 0.8 1.2 Selling, general and administrative Total 1.7 1.9 1.9 Tax benefit (provision) (0.4) (2.5) 1.0 Income tax benefit (provision) Total reclassifications for the period 1.3 (0.6) 2.9 Hedging Gain on settlement (1.5) — — Interest expense, net Tax provision 0.3 — — Income tax benefit (provision) Total reclassifications for the period (1.2) — — Reclassification of foreign currency items 2.1 — — Other expense (income), net Total reclassifications for the period $ 2.2 $ (0.6) $ 2.9 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Contingencies | Commitments and Contingencies Legal Proceedings In re Hertz Global Holdings, Inc. Securities Litigation - In November 2013, a putative shareholder class action, Pedro Ramirez, Jr. v. Hertz Global Holdings, Inc., et al., was commenced in the U.S. District Court for the District of New Jersey naming Hertz Holdings and certain of its officers as defendants and alleging violations of the federal securities laws. The complaint alleged that Hertz Holdings made material misrepresentations and/or omission of material fact in its public disclosures during the period from February 25, 2013 through November 4, 2013, in violation of Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 10b-5 promulgated thereunder. The complaint sought unspecified monetary damages on behalf of the purported class and an award of costs and expenses, including counsel fees and expert fees. In June 2014, Hertz Holdings moved to dismiss the amended complaint. In October 2014, the court granted Hertz Holdings’ motion to dismiss without prejudice, allowing the plaintiff to amend the complaint a second time. In November 2014, plaintiff filed a second amended complaint which shortened the putative class period and made allegations that were not substantively very different than the allegations in the prior complaint. In early 2015, Hertz Holdings moved to dismiss the second amended complaint. In July 2015, the court granted Hertz Holdings’ motion to dismiss without prejudice, allowing plaintiff to file a third amended complaint. In August 2015, plaintiff filed a third amended complaint which included additional allegations, named additional then-current and former officers as defendants and expanded the putative class period to extend from February 14, 2013 to July 16, 2015. In November 2015, Hertz Holdings moved to dismiss the third amended complaint. The plaintiff then sought leave to add a new plaintiff because of challenges to the standing of the first plaintiff. The court granted plaintiff leave to file a fourth amended complaint to add the new plaintiff, and the new complaint was filed on March 1, 2016. Hertz Holdings and the individual defendants moved to dismiss the fourth amended complaint with prejudice on March 24, 2016. In April 2017, the court granted Hertz Holdings' and the individual defendants' motions to dismiss and dismissed the action with prejudice. In May 2017, plaintiff filed a notice of appeal and, in June 2018, oral argument was conducted before the U.S. Court of Appeals for the Third Circuit. In September 2018, the court affirmed the dismissal of the action with prejudice. On February 5, 2019, plaintiff filed a motion to set aside the judgment against it, and for leave to file a fifth amended complaint. The proposed amended complaint would add allegations related to the settlement with the SEC that, among other things, ordered New Hertz to cease and desist from violating certain of the federal securities laws and imposed a civil penalty of $16.0 million. On February 26, 2019, New Hertz filed an opposition to plaintiff’s motion for relief from judgment and leave to file a fifth amended complaint. On March 8, 2019, plaintiff filed a reply in support of that motion. On September 30, 2019, the court denied plaintiff’s motion for relief from judgment and leave to file a fifth amended complaint. On October 30, 2019, plaintiff filed a notice of appeal with the U.S. Court of Appeals for the Third Circuit. On October 13, 2020, the U.S. Court of Appeals for the Third Circuit affirmed the denial of the plaintiff's motion for relief from judgement with respect to the former officers. The court did not rule on the appeal with respect to Hertz Global Holdings, Inc. due to the automatic stay created by Hertz Global Holding, Inc.'s ongoing bankruptcy proceedings. In addition, the Company is subject to a number of claims and proceedings that generally arise in the ordinary conduct of its business. These matters include, but are not limited to, claims arising from the operation of rented equipment and workers' compensation claims. The Company does not believe that the liabilities arising from such ordinary course claims and proceedings will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows. The Company has established reserves for matters where the Company believes the losses are probable and can be reasonably estimated. For matters where a reserve has not been established, the ultimate outcome or resolution cannot be predicted at this time, or the amount of ultimate loss, if any, cannot be reasonably estimated. Litigation is subject to many uncertainties and there can be no assurance as to the outcome of the individual litigated matters. It is possible that certain of the actions, claims, inquiries or proceedings, could be decided unfavorably to the Company or any of its subsidiaries involved. Accordingly, it is possible that an adverse outcome from such a proceeding could exceed the amount accrued in an amount that could be material to the Company's consolidated financial condition, results of operations or cash flows in any particular reporting period. Off-Balance Sheet Commitments Indemnification Obligations In the ordinary course of business, the Company executes contracts involving indemnification obligations customary in the relevant industry and indemnifications specific to a transaction such as the sale of a business or assets or a financial transaction. These indemnification obligations might include claims relating to the following: accuracy of representations; compliance with covenants and agreements by the Company or third parties; environmental matters; intellectual property rights; governmental regulations; employment-related matters; customer, supplier and other commercial contractual relationships; condition of assets; and financial or other matters. Performance under these indemnification obligations would generally be triggered by a breach of terms of the contract or by a third-party claim. The Company regularly evaluates the probability of having to incur costs associated with these indemnification obligations and has accrued for expected losses that are probable and estimable. The types of indemnification obligations for which payments are possible include the following: The Spin-Off In connection with the Spin-Off, pursuant to the separation and distribution agreement (as discussed in Note 21, "Arrangements with New Hertz"), the Company has assumed the liability for, and control of, all pending and threatened legal matters related to its equipment rental business and related assets, as well as assumed or retained liabilities, and will indemnify New Hertz for any liability arising out of or resulting from such assumed legal matters. The separation and distribution agreement also provides for certain liabilities to be shared by the parties. The Company is responsible for a portion of these shared liabilities (typically 15%), as set forth in that agreement. New Hertz is responsible for managing the settlement or other disposition of such shared liabilities. Pursuant to the tax matters agreement, the Company has agreed to indemnify New Hertz for any resulting taxes and related losses if the Company takes or fails to take any action (or permits any of its affiliates to take or fail to take any action) that causes the Spin-Off and related transactions to be taxable, or if there is an acquisition of the equity securities or assets of the Company or of any member of the Company’s group that causes the Spin-Off and related transactions to be taxable. Guarantee The Company has an outstanding bank loan in connection with a previous joint venture. The Company has determined the maximum potential payment amount under the guarantee is approximately $5.3 million; however the Company has not recorded a liability on its balance sheet as of December 31, 2020 as the bank loan is collateralized by the rental equipment and other assets of the joint venture entity and has maturities through 2023. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market or, if none exists, the most advantageous market, for the specific asset or liability at the measurement date (referred to as the "exit price"). Fair value is a market-based measurement that should be determined based upon assumptions that market participants would use in pricing an asset or liability, including consideration of nonperformance risk. The Company assesses the inputs used to measure fair value using the three-tier hierarchy promulgated under U.S. GAAP. This hierarchy indicates the extent to which inputs used in measuring fair value are observable in the market. Level 1: Inputs that reflect quoted prices for identical assets or liabilities in active markets that are observable. Level 2: Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3: Inputs that are unobservable to the extent that observable inputs are not available for the asset or liability at the measurement date and include management's judgment about assumptions that market participants would use in pricing the asset or liability. Under U.S. GAAP, entities are allowed to measure certain financial instruments and other items at fair value. The Company has not elected the fair value measurement option for any of its assets or liabilities that meet the criteria for this option. Irrespective of the fair value option previously described, U.S. GAAP requires certain financial and non-financial assets and liabilities of the Company to be measured on either a recurring basis or on a nonrecurring basis as shown in the sections that follow. Assets and Liabilities Measured at Fair Value on a Recurring Basis The fair value of cash, accounts receivable, accounts payable and accrued liabilities, to the extent the underlying liability will be settled in cash, approximates carrying values because of the short-term nature of these instruments. The Company's assessment of goodwill and other intangible assets for impairment includes an assessment using various Level 2 (EBITDA multiples and discount rate) and Level 3 (forecasted cash flows) inputs. See Note 2, "Basis of Presentation and Recently Issued Accounting Pronouncements," for more information on the application of the use of fair value methodology. Cash Equivalents and Investments Cash equivalents, when held, primarily consist of money market accounts which are classified as Level 1 assets which the Company measures at fair value on a recurring basis. The Company determines the fair value of cash equivalents using a market approach based on quoted prices in active markets. The Company had no cash equivalents at December 31, 2020 or 2019. Debt Obligations The fair values of the Company's ABL Credit Facility, AR Facility, finance lease liabilities and other borrowings approximated their book values as of December 31, 2020 and 2019. The fair value of the Company's 2027 Notes are estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs) (in millions). December 31, 2020 December 31, 2019 Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value 2027 Notes $ 1,200.0 $ 1,276.4 $ 1,200.0 $ 1,265.0 |
Equity Earnings Per Share
Equity Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Equity Earnings Per Share | Equity Earnings Per Share Earnings Per Share Basic earnings per share has been computed based upon the weighted average number of common shares outstanding. Diluted earnings per share has been computed based upon the weighted average number of common shares outstanding plus the effect of all potentially dilutive common stock equivalents, except when the effect would be anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data). Years Ended December 31, 2020 2019 2018 Basic and diluted earnings per share: Numerator: Net income, basic and diluted $ 73.7 $ 47.5 $ 69.1 Denominator: Basic weighted average common shares 29.1 28.7 28.4 Stock options, RSUs and PSUs 0.3 0.4 0.5 Weighted average shares used to calculate diluted earnings per share 29.4 29.1 28.9 Earnings per share: Basic $ 2.53 $ 1.66 $ 2.43 Diluted $ 2.51 $ 1.63 $ 2.39 Antidilutive stock options, RSUs and PSUs 0.4 0.3 0.2 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Agreements with Carl C. Icahn The Company is subject to the Nomination and Standstill Agreement, dated September 15, 2014 (the "Nomination and Standstill Agreement"), with Carl C. Icahn and certain related entities and individuals. In connection with their appointments or nomination, as applicable, to the Company’s board of directors (the "Board"), each of Jonathan Frates, Nicholas F. Graziano and Andrew Langham (collectively, the "Icahn Designees," and, together with Carl C. Icahn and the other parties to the Nomination and Standstill Agreements the "Icahn Group") executed a Joinder Agreement agreeing to become bound as a party to the terms and conditions of the Nomination and Standstill Agreement (such Joinder Agreements, together with the Nomination and Standstill Agreement, are collectively referred to herein as the "Icahn Agreements"). Pursuant to the Icahn Agreements, the Icahn Designees were appointed to the Company’s Board. So long as an Icahn Designee is a member of the Board, the Board will not be expanded beyond its current size without approval from the Icahn Designees then on the Board. In addition, pursuant to the Icahn Agreements, subject to certain restrictions and requirements, the Icahn Group will have certain replacement rights in the event an Icahn Designee resigns or is otherwise unable to serve as a director (other than as a result of not being nominated by the Company for an annual meeting). In addition, until the date that no Icahn Designee is a member of the Board (or otherwise deemed to be on the Board pursuant to the terms of the Icahn Agreements) the Icahn Group agrees to vote all of its shares of the Company’s common stock in favor of the election of all of the Company’s director nominees at each annual or special meeting of the Company’s stockholders, and, subject to limited exceptions, the Icahn Group further agrees to (i) adhere to certain standstill obligations, including the obligation to not solicit proxies or consents or influence others with respect to the same, and (ii) not acquire or otherwise beneficially own more than 20% of the Company’s outstanding voting securities. Pursuant to the Icahn Agreements, the Company will not create a separate executive committee of the Board so as long as an Icahn Designee is a member of the Board. Under the Icahn Agreements, if the Icahn Group ceases to hold a “net long position,” as defined in the Nomination and Standstill Agreement, in at least 1,900,000 shares of the Company’s common stock, the Icahn Group will cause one Icahn Designee to resign from the Board; if the Icahn Group’s holdings are further reduced to specified levels, additional Icahn Designees are required to resign. In addition, pursuant to the Icahn Agreements, the Company entered into a registration rights agreement, effective June 30, 2016 (the "Registration Rights Agreement"), with certain entities related to Carl C. Icahn on behalf of any person who is a member of the "Icahn group" (as such term is defined therein) who owns applicable securities at the relevant time and is or has become a party to the Registration Rights Agreement. The Registration Rights Agreement provides for customary demand and piggyback registration rights and obligations. In connection with the Spin-Off, the Company entered into a separation and distribution agreement (the "Separation Agreement") with New Hertz. In connection therewith, the Company also entered into various other ancillary agreements with New Hertz to effect the Spin-Off and provide a framework for its relationship with New Hertz. The following summarizes some of the most significant agreements and relationships that Herc Holdings continues to have with New Hertz. Separation and Distribution Agreement The Separation Agreement sets forth the Company's agreements with New Hertz regarding the principal actions taken in connection with the Spin-Off. It also sets forth other agreements that govern aspects of the Company's relationship with New Hertz following the Spin-Off including (i) the manner in which legal matters and claims are allocated and certain liabilities are shared between the Company and New Hertz; (ii) other matters including transfers of assets and liabilities, treatment or termination of intercompany arrangements and releases of certain claims between the parties and their affiliates; (iii) mutual indemnification clauses; and (iv) allocation of Spin-Off expenses between the parties. Tax Matters Agreement The Company entered into a tax matters agreement with New Hertz that governs the parties' rights, responsibilities and obligations after the Spin-Off with respect to tax liabilities and benefits, tax attributes, tax contests and other tax matters regarding income taxes, other taxes and related tax returns. Employee Matters Agreement The Company and New Hertz entered into an employee matters agreement to allocate liabilities and responsibilities relating to employment matters, employee compensation, benefit plans and programs and other related matters for current and former employees of the vehicle rental business and the equipment rental business. Intellectual Property Agreement The Company and New Hertz entered into an intellectual property agreement (the “Intellectual Property Agreement”) that provides for ownership, licensing and other arrangements regarding the trademarks and related intellectual property that New Hertz and the Company use in conducting their businesses. The Intellectual Property Agreement allocates ownership between New Hertz and the Company of all trademarks, domain names and certain copyrights that Hertz Holdings or its subsidiaries owned immediately prior to the Spin-Off. |
Arrangements with New Hertz
Arrangements with New Hertz | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Arrangements with New Hertz | Related Party Transactions Agreements with Carl C. Icahn The Company is subject to the Nomination and Standstill Agreement, dated September 15, 2014 (the "Nomination and Standstill Agreement"), with Carl C. Icahn and certain related entities and individuals. In connection with their appointments or nomination, as applicable, to the Company’s board of directors (the "Board"), each of Jonathan Frates, Nicholas F. Graziano and Andrew Langham (collectively, the "Icahn Designees," and, together with Carl C. Icahn and the other parties to the Nomination and Standstill Agreements the "Icahn Group") executed a Joinder Agreement agreeing to become bound as a party to the terms and conditions of the Nomination and Standstill Agreement (such Joinder Agreements, together with the Nomination and Standstill Agreement, are collectively referred to herein as the "Icahn Agreements"). Pursuant to the Icahn Agreements, the Icahn Designees were appointed to the Company’s Board. So long as an Icahn Designee is a member of the Board, the Board will not be expanded beyond its current size without approval from the Icahn Designees then on the Board. In addition, pursuant to the Icahn Agreements, subject to certain restrictions and requirements, the Icahn Group will have certain replacement rights in the event an Icahn Designee resigns or is otherwise unable to serve as a director (other than as a result of not being nominated by the Company for an annual meeting). In addition, until the date that no Icahn Designee is a member of the Board (or otherwise deemed to be on the Board pursuant to the terms of the Icahn Agreements) the Icahn Group agrees to vote all of its shares of the Company’s common stock in favor of the election of all of the Company’s director nominees at each annual or special meeting of the Company’s stockholders, and, subject to limited exceptions, the Icahn Group further agrees to (i) adhere to certain standstill obligations, including the obligation to not solicit proxies or consents or influence others with respect to the same, and (ii) not acquire or otherwise beneficially own more than 20% of the Company’s outstanding voting securities. Pursuant to the Icahn Agreements, the Company will not create a separate executive committee of the Board so as long as an Icahn Designee is a member of the Board. Under the Icahn Agreements, if the Icahn Group ceases to hold a “net long position,” as defined in the Nomination and Standstill Agreement, in at least 1,900,000 shares of the Company’s common stock, the Icahn Group will cause one Icahn Designee to resign from the Board; if the Icahn Group’s holdings are further reduced to specified levels, additional Icahn Designees are required to resign. In addition, pursuant to the Icahn Agreements, the Company entered into a registration rights agreement, effective June 30, 2016 (the "Registration Rights Agreement"), with certain entities related to Carl C. Icahn on behalf of any person who is a member of the "Icahn group" (as such term is defined therein) who owns applicable securities at the relevant time and is or has become a party to the Registration Rights Agreement. The Registration Rights Agreement provides for customary demand and piggyback registration rights and obligations. In connection with the Spin-Off, the Company entered into a separation and distribution agreement (the "Separation Agreement") with New Hertz. In connection therewith, the Company also entered into various other ancillary agreements with New Hertz to effect the Spin-Off and provide a framework for its relationship with New Hertz. The following summarizes some of the most significant agreements and relationships that Herc Holdings continues to have with New Hertz. Separation and Distribution Agreement The Separation Agreement sets forth the Company's agreements with New Hertz regarding the principal actions taken in connection with the Spin-Off. It also sets forth other agreements that govern aspects of the Company's relationship with New Hertz following the Spin-Off including (i) the manner in which legal matters and claims are allocated and certain liabilities are shared between the Company and New Hertz; (ii) other matters including transfers of assets and liabilities, treatment or termination of intercompany arrangements and releases of certain claims between the parties and their affiliates; (iii) mutual indemnification clauses; and (iv) allocation of Spin-Off expenses between the parties. Tax Matters Agreement The Company entered into a tax matters agreement with New Hertz that governs the parties' rights, responsibilities and obligations after the Spin-Off with respect to tax liabilities and benefits, tax attributes, tax contests and other tax matters regarding income taxes, other taxes and related tax returns. Employee Matters Agreement The Company and New Hertz entered into an employee matters agreement to allocate liabilities and responsibilities relating to employment matters, employee compensation, benefit plans and programs and other related matters for current and former employees of the vehicle rental business and the equipment rental business. Intellectual Property Agreement The Company and New Hertz entered into an intellectual property agreement (the “Intellectual Property Agreement”) that provides for ownership, licensing and other arrangements regarding the trademarks and related intellectual property that New Hertz and the Company use in conducting their businesses. The Intellectual Property Agreement allocates ownership between New Hertz and the Company of all trademarks, domain names and certain copyrights that Hertz Holdings or its subsidiaries owned immediately prior to the Spin-Off. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company consists of a single reportable segment, worldwide equipment rental. The Company considered guidance in ASC Topic 280, Segment Reporting, and used the management approach in determining its reportable segments. We generate substantially all of our equipment rental revenue in North America. For each of the last three fiscal years, revenues from our external customers attributed to the U.S. and all foreign countries (primarily Canada) in total are set forth below: Years Ended December 31, 2020 2019 2018 United States $ 1,624.4 $ 1,796.6 $ 1,757.8 International 156.9 202.4 218.9 Total revenue $ 1,781.3 $ 1,999.0 $ 1,976.7 Geographic information for long-lived assets, which consist primarily of rental equipment and property and equipment, was as follows (in millions): December 31, 2020 December 31, 2019 Total assets United States $ 3,285.9 $ 3,360.4 International 302.5 456.6 Total $ 3,588.4 $ 3,817.0 Rental equipment, net United States $ 2,061.3 $ 2,254.2 International 199.1 235.8 Total $ 2,260.4 $ 2,490.0 Property and equipment, net United States $ 271.9 $ 291.5 International 18.5 20.3 Total $ 290.4 $ 311.8 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) Provided below is a summary of the quarterly operating results during 2020 and 2019. Amounts are computed independently each quarter. As a result, the sum of the quarter's amounts may not equal the total amount for the respective year. First Quarter Second Quarter Third Quarter Fourth Quarter (In millions, except per share data) 2020 2020 2020 2020 Revenues $ 436.2 $ 368.0 $ 456.7 $ 520.4 Income (loss) before income taxes (2.6) 0.1 51.6 45.0 Net income (loss) (a) (3.7) 2.0 39.9 35.5 Earnings (loss) per share: Basic $ (0.13) $ 0.07 $ 1.37 $ 1.22 Diluted $ (0.13) $ 0.07 $ 1.35 $ 1.19 First Quarter Second Quarter Third Quarter Fourth Quarter (In millions, except per share data) 2019 2019 2019 2019 Revenues $ 475.7 $ 475.1 $ 508.1 $ 540.1 Income (loss) before income taxes (9.8) 15.0 5.2 53.2 Net income (loss) (b) (6.7) 9.7 9.4 35.1 Earnings (loss) per share: Basic $ (0.23) $ 0.34 $ 0.33 1.22 Diluted $ (0.23) $ 0.33 $ 0.32 $ 1.20 (a) Net income (loss) for the first, second and fourth quarters includes impairment charges of $6.3 million, $3.2 million and $5.9 million as discussed in Note 8 , " Assets Held for Sale and Impairments ." (b) Net income for the second quarter includes a restructuring charge of $7.7 million, the third quarter includes a loss on the early extinguishment of debt of $53.6 million and the fourth quarter includes an impairment of $4.0 million related to certain assets held for sale . |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS HERC HOLDINGS INC. AND SUBSIDIARIES (In millions) Beginning Balance Provisions Translation Adjustments Deductions Ending Balance Receivables allowances: Year to date December 31, 2020 $ 18.8 $ 31.4 $ — $ (34.7) $ 15.5 Year to date December 31, 2019 21.5 48.2 0.1 (51.0) 18.8 Year to date December 31, 2018 26.9 57.8 (0.2) (63.0) 21.5 Tax valuation allowances: Year to date December 31, 2020 $ 9.0 $ — $ 0.3 $ (6.1) $ 3.2 Year to date December 31, 2019 5.8 4.4 — (1.2) 9.0 Year to date December 31, 2018 7.6 0.3 (0.3) (1.8) 5.8 |
Basis of Presentation and Rec_2
Basis of Presentation and Recently Issued Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include receivables allowances, depreciation of rental equipment, the recoverability of long-lived assets, useful lives and impairment of long-lived tangible and intangible assets including goodwill and trade name, pension and postretirement benefits, valuation of stock-based compensation, reserves for litigation and other contingencies and accounting for income taxes. |
Principles of Consolidation | Principles of ConsolidationThe consolidated financial statements include the accounts of Herc Holdings and its wholly owned subsidiaries. In the event that the Company is a primary beneficiary of a variable interest entity, the assets, liabilities and results of operations of the variable interest entity are included in the Company's consolidated financial statements. All significant intercompany transactions have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three months or less. |
Concentration of Credit Risk | Concentration of Credit Risk The Company's cash and cash equivalents are held in checking accounts, various investment grade institutional money market accounts or bank term deposits. Deposits held at banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate such risks by spreading the risk across multiple |
Receivables | Receivables Receivables are stated net of allowances and represent credit extended to customers and manufacturers that satisfy defined credit criteria. The estimate of the allowance for doubtful accounts is based on the Company's historical experience and its judgment as to the likelihood of ultimate collection. Actual receivables are written-off against the allowance for doubtful accounts when the Company determines the balance will not be collected. Estimates for future credit memos are based on historical experience and are reflected as reductions to revenue, while the provision for bad debt for rental transactions is reflected as a component of "Selling, general and administrative expenses" in the Company's consolidated statements of operations. |
Rental Equipment | Rental Equipment Rental equipment is stated at cost, net of related discounts, with holding periods ranging from one year to 15 years. Generally, when rental equipment is acquired, the Company estimates the period that it will hold the asset, primarily based on historical measures of the amount of rental activity (e.g. equipment usage) and the targeted age of equipment at the time of disposal. The Company also estimates the residual value of the applicable rental equipment at the expected time of disposal. The residual value for rental equipment is affected by factors which include equipment age and amount of usage. Depreciation is recorded over the estimated holding period. Depreciation rates are reviewed on a quarterly basis based on management's ongoing assessment of present and estimated future market conditions, their effect on residual values at the time of disposal and the estimated holding periods. Market conditions for used equipment sales can also be affected by external factors such as the economy, natural disasters, fuel prices, supply of similar used equipment, the market price for similar new equipment and incentives offered by manufacturers of new equipment. These key factors are considered when estimating future residual values and assessing depreciation rates. As a result of this ongoing assessment, the Company makes periodic adjustments to depreciation rates of rental equipment in response to changed market conditions. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated utilizing the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the estimated useful lives of the related assets or leases, whichever is shorter. Useful lives are as follows: Buildings 8 to 33 years Service vehicles 3 to 13 years Machinery and equipment 1 to 15 years Computer equipment 1 to 5 years Furniture and fixtures 2 to 10 years Leasehold improvements The lesser of the asset life or expected lease term including lease extension options. The Company follows the practice of charging routine maintenance and repairs, including the cost of minor replacements, to maintenance expense. Costs of major replacements are capitalized and depreciated. |
Leases | Leases Leases are classified as either finance or operating at inception of the lease, with classification affecting the pattern of expense recognition in the income statement. Operating and finance leases result in the recognition of right-of-use ("ROU") assets and lease liabilities on the balance sheet. ROU assets represent the Company's right to use the leased asset for the lease term and lease liabilities represent the obligation to make lease payments. The liability is calculated as the present value of the remaining minimum lease payments for existing operating leases using either the rate implicit in the lease or, if none exists, the Company's incremental borrowing rate. Operating lease cost is recorded on a straight-line basis over the remaining lease term. Finance lease cost includes amortization of the ROU assets on a straight-line basis and interest on the lease liabilities using the effective interest method. |
Public Liability and Property Damage | Public Liability and Property Damage The obligation for public liability and property damage on self-insured equipment represents an estimate for both reported accident claims not yet paid, and claims incurred but not yet reported. The related liabilities are recorded on a non-discounted basis. Reserve requirements are based on actuarial evaluations of historical accident claim experience and trends, as well as future projections of ultimate losses, expenses, premiums and administrative costs. The adequacy of the liability is regularly monitored based on evolving accident claim history and insurance-related state legislation changes. If the Company's estimates change or if actual results differ from these assumptions, the amount of the recorded liability is adjusted to reflect these results. |
Reserves for Claims | Reserves for Claims The Company is exposed to various claims relating to our business, including those for which we provide self-insurance. Claims for which we self-insure include: (i) workers compensation claims; (ii) general liability claims by third parties for injury or property damage caused by our equipment or personnel; (iii) automobile liability claims; and (iv) employee health insurance claims. These types of claims may take a substantial amount of time to resolve and, accordingly, the ultimate liability associated with a particular claim, including claims incurred but not reported as of a period-end reporting date, may not be known for an extended period of time. The Company's methodology for developing self-insurance reserves is based on management estimates and independent third party actuarial estimates. The estimation process considers, among other matters, the cost of known claims over time, cost inflation and incurred but not reported claims. These estimates may change based on, among other things, changes in the Company's claim history or receipt of additional information relevant to assessing the claims and the amount of the recorded liability is adjusted to reflect these changes. The long-term portion of our self-insurance reserves is included in "Other long-term liabilities" in the consolidated balance sheet. |
Defined Benefit Pension Plans and Other Employee Benefits | Defined Benefit Pension Plans and Other Employee Benefits The Company's employee pension costs and obligations are developed from actuarial valuations. Inherent in these valuations are key assumptions, including discount rates, salary growth, long-term return on plan assets, retirement rates, mortality rates and other factors. The selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by actuaries. However, actual results may differ substantially from the estimates that were based on the assumptions. The Company uses a December 31 measurement date for all of the plans. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Assets and liabilities of international subsidiaries whose functional currency is the local currency are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average exchange rates throughout the year. The related translation adjustments are reflected in “Accumulated other comprehensive income (loss)” in the equity section of the Company's consolidated balance sheets. Foreign currency gains and losses resulting from transactions are included in earnings. |
Financial Instruments | Financial InstrumentsThe Company is exposed to a variety of market risks, including the effects of changes in interest rates and foreign currency exchange rates. The Company manages exposure to these market risks through ongoing processes to monitor the impact of market changes and, when deemed appropriate, through the use of financial instruments. Financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes. The Company accounts for all derivatives in accordance with U.S. GAAP, which requires that they be recorded on the balance sheet as either assets or liabilities measured at their fair value. For financial instruments that are designated and qualify as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as either a fair value hedge or a cash flow hedge. The effective portion of changes in fair value of financial instruments designated as cash flow hedging instruments is recorded as a component of other comprehensive income (loss). Amounts included in accumulated other comprehensive income (loss) for cash flow hedges are reclassified into earnings in the same period that the hedged item is recognized in earnings. The ineffective portion of changes in the fair value of financial instruments designated as cash flow hedges is recognized currently in earnings within the same line item as the hedged item, based upon the nature of the hedged item. For financial instruments that are not part of a qualified hedging relationship, the changes in their fair value are recognized currently in earnings. |
Business Combinations | Business Combinations The Company has made acquisitions and may continue to make acquisitions in the future. The assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition. Long-lived assets (principally rental equipment), goodwill and other intangible assets generally represent the largest components of the acquisitions. Rental equipment is valued utilizing either a cost, market or income approach, or a combination of certain of these methods, depending on the asset being valued and the availability of market or income data. The intangible assets that the Company has acquired are non-compete agreements, customer relationships and trade names and associated trademarks. The estimated fair values of these intangible assets reflect various assumptions about discount rates, revenue growth rates, operating margins, terminal values, useful lives and other prospective financial information. Goodwill is calculated as the excess of the cost of the acquired entity over the net of the fair value of the assets acquired and the liabilities assumed. Non-compete agreements, customer relationships and trade names and associated trademarks are valued based on an excess earnings or income approach based on projected cash flows and may be amortized over the useful life if they are determined to be finite-lived intangible assets. Determining the fair value of the assets and liabilities acquired is judgmental in nature and can involve the use of significant estimates and assumptions. As part of an acquisition, the Company will also acquire other assets and assume liabilities. These other assets and liabilities typically include, but are not limited to, parts inventory, accounts receivable, accounts payable and other working capital items. Because of their short-term nature, the fair values of these other assets and liabilities generally approximate the book values on the acquired entities' balance sheets. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets On an annual basis and at interim periods when circumstances require, the Company tests the recoverability of its goodwill. The analysis is conducted as of October 1 each year. The Company has one reporting unit and compares the carrying value of its reporting unit to its fair value. If the carrying value of the reporting unit is greater than its fair value, the Company recognizes an impairment charge for the amount equal to that excess. The Company may first assess qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. If a quantitative impairment test is performed, the fair value of the reporting unit is estimated using a combination of an income approach on the present value of estimated future cash flows and a market approach based on published earnings multiples of comparable entities with similar operations and economic characteristics as well as acquisition multiples paid in recent transactions. The Company’s discounted cash flows are based upon reasonable and appropriate assumptions, which are weighted for their likely probability of occurrence, about the underlying business activities of the Company. Indefinite-lived intangible assets, primarily our trade name, are not amortized but are evaluated annually for impairment and whenever events or changes in circumstances indicate that the carrying amount of this asset may exceed its fair value. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment charge is recognized in an amount equal to that excess. |
Finite-Lived Intangible and Long-Lived Assets | Finite-Lived Intangible and Long-Lived Assets Intangible assets include technology, customer relationships and other intangibles. Intangible assets with finite lives are amortized over the estimated economic lives of the assets, which range from three Long-lived assets, or disposal groups comprising assets and liabilities, that are expected to be recovered primarily through sale rather than through continuing use are classified as assets held for sale. Upon designation as an asset held for sale, the carrying value of each long-lived asset or disposal group is recorded at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and depreciation expense is no longer recorded. |
Revenue Recognition | Revenue Recognition The Company is principally engaged in the business of renting equipment. Ancillary to the Company’s principal equipment rental business, the Company also sells used rental equipment, new equipment and parts and supplies and offers certain services to support its customers. The Company’s rental transactions are accounted for under ASC Topic 842, Leases, ("Topic 842"). Prior to the adoption of Topic 842 on January 1, 2019, the Company accounted for these transactions under ASC Topic 840, Leases , ("Topic 840"). Equipment rental revenue includes revenue generated from renting equipment to customers, including re-rent revenue, and is recognized on a straight-line basis over the length of the rental contract. Other equipment rental revenues include fees for the Company's rental protection program and environmental charges and are recognized on a straight-line basis over the length of the rental contract. The Company’s sale of rental and new equipment, parts and supplies along with certain services provided to customers are recognized under ASC Topic 606, Revenue from Contracts with Customers, ("Topic 606") which was adopted on January 1, 2018. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for such products or services. |
Advertising | AdvertisingAdvertising and sales promotion costs are expensed the first time the advertising or sales promotion takes place. Advertising costs are reflected as a component of "Selling, general and administrative" expense in the Company's consolidated statements of operations. |
Stock Based Compensation | Stock Based Compensation Under the Company's stock based compensation plans, certain employees and members of the Company's board of directors have received grants of restricted stock units, performance stock units and stock options for Herc Holdings common stock. The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost is recognized over the period during which the employee is required to provide service in exchange for the award. The Company estimates the fair value of stock options issued at the date of grant using a Black-Scholes option-pricing model, which includes assumptions related to volatility, expected term, dividend yield and risk-free interest rate. The Company accounts for restricted stock unit and performance stock unit awards as equity classified awards. For restricted stock units, the expense is based on the grant date fair value of the stock and the number of shares that vest, recognized over the service period. For performance stock units, the expense is based on the grant date fair value of the stock, recognized over a service period depending upon the applicable performance condition. For performance stock units, the Company re-assesses the probability of achieving the applicable performance condition each reporting period and adjusts the recognition of expense accordingly. |
Income Taxes | Income Taxes The Company applies the provisions of ASC Topic 740, Income Taxes, ("Topic 740"), and computes the provision for income taxes on a Separate Return Basis. Under Topic 740, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and tax bases of assets and liabilities and are measured using the enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. The Company records valuation allowances to reduce its deferred tax assets by the amount that is more likely than not to be realized. Subsequent changes to enacted tax rates and changes in the interpretations thereof will result in deferred taxes and changes to any related valuation allowances. Provisions are not made for income taxes on undistributed earnings of international subsidiaries that are intended to be indefinitely reinvested outside of the United States or are expected to be remitted free of taxes. Future distributions, if any, from these international subsidiaries to the United States or changes in U.S. tax rules may require a charge to reflect tax on these amounts. In accordance with Topic 740, the Company recognizes, in its consolidated financial statements, the impact of the Company's tax positions that are more likely than not to be sustained upon examination. The Company will determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority with full knowledge of all relevant information. Upon determination that a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements. The Company recognizes interest and penalties for uncertain tax positions in income tax expense. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Fair Value Measurement In August 2018, the Financial Accounting Standards Board ("FASB") issued new guidance that modifies disclosure requirements on fair value measurements, removing and modifying certain disclosures, while adding other disclosures. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company adopted the new guidance on its effective date and it did not have a material impact on its financial statement disclosures. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued guidance that requires companies to present assets held at amortized cost and available for sale debt securities net of the amount expected to be collected. The guidance requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectibility. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 with early adoption permitted. Different components of the guidance require modified retrospective or prospective adoption. This guidance does not apply to receivables arising from operating leases and, as discussed in Note 3, "Revenue Recognition," most of the Company's equipment rental revenue is accounted for as lease revenue under Topic 842. The Company adopted this guidance on its effective date and there was no material impact on its financial position, results of operations or cash flows. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued guidance that simplifies the accounting for income taxes. The guidance removes the following exceptions: (i) exceptions to the approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, (ii) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, (iii) 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 (iv) 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: (i) 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, (ii) 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, (iii) 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), (iv) 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 (v) 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 Company early adopted this guidance on January 1, 2020 and there was no material impact on its financial position, results of operations or cash flows. Compensation - Retirement Benefits In August 2018, the FASB issued guidance that adds, removes, and modifies disclosure requirements related to defined benefit pension and other postretirement plans in order to improve the disclosure effectiveness. The guidance is effective for fiscal years beginning after December 15, 2020 and should be applied on a retrospective basis to all periods presented. The Company early adopted this guidance on December 31, 2020 as permitted, and there was no impact the Company's financial position, results of operations or cash flows. See Note 13, "Employee Retirement Benefits" for revised disclosures in accordance with this guidance. Not Yet Adopted Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Basis of Presentation and Rec_3
Basis of Presentation and Recently Issued Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Useful Lives | Useful lives are as follows: Buildings 8 to 33 years Service vehicles 3 to 13 years Machinery and equipment 1 to 15 years Computer equipment 1 to 5 years Furniture and fixtures 2 to 10 years Leasehold improvements The lesser of the asset life or expected lease term including lease extension options. Property and equipment consists of the following (in millions): December 31, 2020 December 31, 2019 Land and buildings $ 117.3 $ 116.1 Service vehicles 278.7 305.3 Leasehold improvements 105.8 94.3 Machinery and equipment 23.6 23.3 Computer equipment and software 75.9 64.9 Furniture and fixtures 15.6 15.1 Construction in progress 7.2 9.4 Property and equipment, gross 624.1 628.4 Less: accumulated depreciation (333.7) (316.6) Property and equipment, net $ 290.4 $ 311.8 The Company leases certain of its service vehicles and office equipment under finance leases. Depreciation of assets held under finance leases is included in depreciation expense. The gross amounts of property and equipment and related depreciation recorded under finance leases, included in the table above, were as follows (in millions): December 31, 2020 December 31, 2019 Service vehicles $ 72.7 $ 101.8 Furniture and fixtures 0.7 1.0 73.4 102.8 Less: accumulated depreciation (32.6) (46.2) $ 40.8 $ 56.6 The Company has entered into financing obligations to lease certain of its properties as discussed further in Note 12, "Financing Obligations." Depreciation of assets held under financing obligations is included in depreciation expense. The gross amounts of land, building and leasehold improvements and related depreciation recorded under financing obligations, included in the table above, were as follows (in millions): December 31, 2020 December 31, 2019 Land, building and leasehold improvements $ 77.4 $ 77.4 Less: accumulated depreciation (38.7) (36.1) $ 38.7 $ 41.3 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table summarizes the applicable accounting guidance for the Company’s revenues (in millions): Years Ended December 31, 2020 2019 2018 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Topic 840 Topic 606 Total Revenues: Equipment rental $ 1,401.1 $ — $ 1,401.1 $ 1,549.9 $ — $ 1,549.9 $ 1,509.7 $ — $ 1,509.7 Other rental revenue: Delivery and pick-up — 86.7 86.7 — 98.0 98.0 — 88.4 88.4 Other 55.9 — 55.9 53.9 — 53.9 60.2 — 60.2 Total other rental revenues 55.9 86.7 142.6 53.9 98.0 151.9 60.2 88.4 148.6 Total equipment rentals 1,457.0 86.7 1,543.7 1,603.8 98.0 1,701.8 1,569.9 88.4 1,658.3 Sales of rental equipment — 198.5 198.5 — 242.8 242.8 — 256.2 256.2 Sales of new equipment, parts and supplies — 28.2 28.2 — 44.0 44.0 — 49.3 49.3 Service and other revenues — 10.9 10.9 — 10.4 10.4 — 12.9 12.9 Total revenues $ 1,457.0 $ 324.3 $ 1,781.3 $ 1,603.8 $ 395.2 $ 1,999.0 $ 1,569.9 $ 406.8 $ 1,976.7 |
Disaggregation of Revenue | The Company sells its used rental equipment, new equipment, parts and supplies. Revenues recorded for each category are as follows (in millions): Years Ended December 31, 2020 2019 2018 Sales of rental equipment $ 198.5 $ 242.8 $ 256.2 Sales of new equipment 11.5 21.0 21.3 Sales of parts and supplies 16.7 23.0 28.0 Total $ 226.7 $ 286.8 $ 305.5 |
Rental Equipment (Tables)
Rental Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Rental Equipment [Abstract] | |
Schedule of Rental Equipment | Rental equipment consists of the following (in millions): December 31, 2020 December 31, 2019 Rental equipment $ 3,613.5 $ 3,821.6 Less: Accumulated depreciation (1,353.1) (1,331.6) Rental equipment, net $ 2,260.4 $ 2,490.0 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Useful lives are as follows: Buildings 8 to 33 years Service vehicles 3 to 13 years Machinery and equipment 1 to 15 years Computer equipment 1 to 5 years Furniture and fixtures 2 to 10 years Leasehold improvements The lesser of the asset life or expected lease term including lease extension options. Property and equipment consists of the following (in millions): December 31, 2020 December 31, 2019 Land and buildings $ 117.3 $ 116.1 Service vehicles 278.7 305.3 Leasehold improvements 105.8 94.3 Machinery and equipment 23.6 23.3 Computer equipment and software 75.9 64.9 Furniture and fixtures 15.6 15.1 Construction in progress 7.2 9.4 Property and equipment, gross 624.1 628.4 Less: accumulated depreciation (333.7) (316.6) Property and equipment, net $ 290.4 $ 311.8 The Company leases certain of its service vehicles and office equipment under finance leases. Depreciation of assets held under finance leases is included in depreciation expense. The gross amounts of property and equipment and related depreciation recorded under finance leases, included in the table above, were as follows (in millions): December 31, 2020 December 31, 2019 Service vehicles $ 72.7 $ 101.8 Furniture and fixtures 0.7 1.0 73.4 102.8 Less: accumulated depreciation (32.6) (46.2) $ 40.8 $ 56.6 The Company has entered into financing obligations to lease certain of its properties as discussed further in Note 12, "Financing Obligations." Depreciation of assets held under financing obligations is included in depreciation expense. The gross amounts of land, building and leasehold improvements and related depreciation recorded under financing obligations, included in the table above, were as follows (in millions): December 31, 2020 December 31, 2019 Land, building and leasehold improvements $ 77.4 $ 77.4 Less: accumulated depreciation (38.7) (36.1) $ 38.7 $ 41.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Rollforward | The following summarizes the Company's goodwill (in millions): Years Ended December 31, 2020 2019 Balance at the beginning of the period: Goodwill $ 768.5 $ 765.9 Accumulated impairment losses (674.9) (674.9) 93.6 91.0 Additions 6.9 2.6 Balance at the end of the period: Goodwill 775.4 768.5 Accumulated impairment losses (674.9) (674.9) $ 100.5 $ 93.6 |
Intangible Assets, Net (Finite Lived) | Intangible assets, net, consisted of the following major classes (in millions): December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Value Finite-lived intangible assets: Customer-related and non-compete agreements $ 18.7 $ (10.0) $ 8.7 Internally developed software (a) 39.9 (23.3) 16.6 Total 58.6 (33.3) 25.3 Indefinite-lived intangible assets: Trade name 270.6 — 270.6 Total intangible assets, net $ 329.2 $ (33.3) $ 295.9 (a) Includes capitalized costs of $1.2 million yet to be placed into service. December 31, 2019 Gross Carrying Accumulated Net Carrying Value Finite-lived intangible assets: Customer-related $ 11.4 $ (8.9) $ 2.5 Internally developed software (a) 34.9 (16.4) 18.5 Total 46.3 (25.3) 21.0 Indefinite-lived intangible assets: Trade name 270.5 — 270.5 Total intangible assets, net $ 316.8 $ (25.3) $ 291.5 |
Intangible Assets, Net (Indefinite-Lived) | Intangible assets, net, consisted of the following major classes (in millions): December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Value Finite-lived intangible assets: Customer-related and non-compete agreements $ 18.7 $ (10.0) $ 8.7 Internally developed software (a) 39.9 (23.3) 16.6 Total 58.6 (33.3) 25.3 Indefinite-lived intangible assets: Trade name 270.6 — 270.6 Total intangible assets, net $ 329.2 $ (33.3) $ 295.9 (a) Includes capitalized costs of $1.2 million yet to be placed into service. December 31, 2019 Gross Carrying Accumulated Net Carrying Value Finite-lived intangible assets: Customer-related $ 11.4 $ (8.9) $ 2.5 Internally developed software (a) 34.9 (16.4) 18.5 Total 46.3 (25.3) 21.0 Indefinite-lived intangible assets: Trade name 270.5 — 270.5 Total intangible assets, net $ 316.8 $ (25.3) $ 291.5 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price allocation of the assets acquired and liabilities assumed (in millions): Accounts receivable $ 3.4 Other current assets 0.3 Rental equipment 28.3 Property and equipment 2.1 Intangibles (a) 7.3 Total identifiable assets acquired 41.4 Current liabilities 0.4 Net identifiable assets acquired 41.0 Goodwill (b) 6.9 Net assets acquired $ 47.9 (a) The following table reflects the fair values and useful lives of the acquired intangible assets identified (in millions): Fair value Life (years) Customer relationships $ 7.1 14 Non-compete agreements 0.2 5 $ 7.3 (b) The level of goodwill that resulted from the acquisition is primarily reflective of Champion's going-concern value, the value of Champion's assembled workforce, new customer relationships expected to arise from the acquisition and operational synergies that the Company expects to achieve that are not associated with identifiable assets. All of the goodwill is expected to be deductible for income tax purposes. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense consist of the following (in millions): Years Ended December 31, Classification 2020 2019 Operating lease cost (a) Direct operating $ 83.1 $ 100.1 Finance lease cost: Amortization of ROU assets Depreciation and amortization (b) 11.1 12.5 Interest on lease liabilities Interest expense, net 1.5 1.7 Sublease income Equipment rental revenue (46.6) (67.2) Net lease cost $ 49.1 $ 47.1 (a) Includes short-term leases of $31.4 million and $54.6 million for the year ended December 31, 2020 and December 31, 2019, respectively, and variable lease costs of $5.2 million and $4.3 million for the year ended December 31, 2020 and December 31, 2019, respectively. (b) Depreciation and amortization is included with selling, general and administrative expense. |
Assets and Liabilities Leases | Balance sheet information related to leases consists of the following (in millions): Classification December 31, 2020 December 31, 2019 Assets Operating lease ROU assets Right-of-use assets $ 255.9 $ 207.3 Finance lease ROU assets Property and equipment, net (a) 40.8 56.6 Total leased assets $ 296.7 $ 263.9 Liabilities Current Operating Current maturities of operating lease liabilities $ 32.1 $ 30.5 Finance Current maturities of long-term debt and financing obligations 12.2 21.8 Non-current Operating Operating lease liabilities 234.1 182.2 Finance Long-term debt, net 28.6 34.4 Total lease liabilities $ 307.0 $ 268.9 (a) Finance lease right-of-use assets are recorded net of accumulated amortization of $32.6 million and $46.2 million for the year ended December 31, 2020 and December 31, 2019, respectively. December 31, 2020 Weighted average remaining lease term: Operating leases 10.6 Finance leases 5.6 Weighted average discount rate: Operating leases 3.41 % Finance leases 3.24 % |
Summary of Other Lease Information | Cash flow information related to leases consists of the following (in millions): Years Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 35.5 $ 37.9 Operating cash flows from finance leases 1.5 1.7 Financing cash flows from finance leases 10.8 14.2 Right-of-use assets obtained in exchange for lease obligations: Operating leases 144.4 76.3 Finance leases 1.4 39.1 |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities are as follows (in millions): Operating Leases Finance Leases 2021 $ 39.5 $ 13.0 2022 40.0 6.7 2023 35.8 6.5 2024 32.5 6.2 2025 26.9 6.2 After 2026 140.0 5.2 Total lease payments 314.7 43.8 Less: Interest (48.5) (3.0) Present value of lease liabilities $ 266.2 $ 40.8 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities are as follows (in millions): Operating Leases Finance Leases 2021 $ 39.5 $ 13.0 2022 40.0 6.7 2023 35.8 6.5 2024 32.5 6.2 2025 26.9 6.2 After 2026 140.0 5.2 Total lease payments 314.7 43.8 Less: Interest (48.5) (3.0) Present value of lease liabilities $ 266.2 $ 40.8 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consists of the following (in millions): December 31, 2020 December 31, 2019 Accrued compensation and benefit costs $ 33.4 $ 26.8 Rebate accrual 31.9 33.6 Taxes payable 29.1 16.0 Accrued interest 31.3 32.2 Customer related deferrals 13.5 11.3 Insurance reserves 7.8 9.2 Other 7.3 6.6 Total accrued liabilities $ 154.3 $ 135.7 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt consists of the following (in millions): Weighted Average Effective Interest Rate at December 31, 2020 Weighted Average Stated Interest Rate at December 31, 2020 Fixed or Floating Interest Rate Maturity December 31, December 31, Senior Notes 2027 Notes 5.61% 5.50% Fixed 2027 $ 1,200.0 $ 1,200.0 Other Debt ABL Credit Facility N/A 1.56% Floating 2024 255.0 650.0 AR Facility N/A 1.03% Floating 2021 175.0 175.0 Finance lease liabilities 3.24% N/A Fixed 2021-2027 40.8 56.2 Other borrowings N/A NA NA NA — 5.2 Unamortized Debt Issuance Costs (a) (7.1) (7.9) Total debt 1,663.7 2,078.5 Less: Current maturities of long-term debt (12.2) (27.0) Long-term debt, net $ 1,651.5 $ 2,051.5 (a) Unamortized debt issuance costs totaling $7.1 million and $9.3 million related to the ABL Credit Facility and AR Facility (as each is defined below) as of December 31, 2020 and December 31, 2019 are included in "Other long-term assets" in the consolidated balance sheets. |
Nominal Principal Amounts of Maturities of Debt | The nominal principal amounts of maturities of debt for each of the periods ending December 31 are as follows (in millions): 2021 $ 12.2 2022 5.8 2023 5.9 2024 435.8 2025 6.0 After 2025 1,205.1 Total $ 1,670.8 |
Borrowing Capacity and Availability on Line of Credit | After outstanding borrowings, the following was available to the Company as of December 31, 2020 (in millions): Remaining Availability Under ABL Credit Facility $ 1,471.6 $ 1,380.3 AR Facility — — Total $ 1,471.6 $ 1,380.3 |
Financing Obligations (Tables)
Financing Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Company's Financing Obligations | The Company's financing obligations consist of the following (in millions): Weighted Average Effective Interest Rate at December 31, 2020 Maturity December 31, 2020 December 31, 2019 Financing obligations 5.11% 2026-2038 $ 120.5 $ 123.5 Unamortized financing issuance costs (2.4) (2.5) Total financing obligations 118.1 121.0 Less: Current maturities of financing obligations (3.6) (3.4) Financing obligations, net $ 114.5 $ 117.6 |
Sale Leaseback Transactions | As of December 31, 2020, future minimum financing payments for the agreements referred to above are as follows (in millions): 2021 $ 9.5 2022 9.5 2023 9.5 2024 9.5 2025 9.5 Thereafter 103.4 Total minimum financing obligations payments 150.9 Obligations subject to non-cash gain on future sale of property 34.6 Less amount representing interest (at a weighted-average interest rate of 5.11%) (65.0) Total financing obligations $ 120.5 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligation, Changes in Plan Assets and Funded Status of Plan | The following table provides a reconciliation of benefit obligations and plan assets of the Company’s pension plans and postretirement benefit plans (in millions): Pension Postretirement 2020 2019 2020 2019 Change in Projected Benefit Obligations Benefit obligations at beginning of year $ 163.5 $ 148.5 $ 1.0 $ 1.0 Interest cost 5.1 6.2 — — Plan settlements (8.0) (6.3) — — Benefits paid (0.3) (0.4) — — Actuarial (gain) loss 16.5 15.5 0.1 — Benefit obligations at end of year $ 176.8 $ 163.5 $ 1.1 $ 1.0 Change in Fair Value of Plan Assets Fair value of plan assets at beginning of year $ 143.7 $ 123.6 $ — $ — Actual return on plan assets 19.6 24.0 — — Employer contribution 2.5 2.8 — — Plan settlements (8.0) (6.3) — — Benefits paid (0.3) (0.4) — — Fair value of plan assets at end of year $ 157.5 $ 143.7 $ — $ — Funded Status $ (19.3) $ (19.8) $ (1.1) $ (1.0) Accumulated benefit obligations $ 176.8 $ 163.5 |
Schedule of Amounts Recognized in Balance Sheet | Pension Postretirement 2020 2019 2020 2019 Amounts Recognized in Balance Sheet Accrued liabilities $ (0.1) $ (0.1) $ (0.1) $ (0.1) Other long-term liabilities (19.2) (19.7) (1.0) (0.9) Net amount recognized $ (19.3) $ (19.8) $ (1.1) $ (1.0) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial gain (loss) $ (21.7) $ (20.3) $ 0.2 $ 0.2 Prior service credits 0.1 0.1 — — Net amount recognized $ (21.6) $ (20.2) $ 0.2 $ 0.2 Weighted‑Average Assumptions Used to Determine Projected Benefit Obligations Discount rate 2.3 % 3.2 % 2.2 % 3.2 % Average rate of increase in compensation — % — % — % — % Interest credit rate 3.8 % 3.8 % — % — % Initial healthcare cost trend rate N/A N/A 5.5 % 5.8 % Ultimate healthcare cost trend rate N/A N/A 4.5 % 4.5 % |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Pension Postretirement 2020 2019 2020 2019 Amounts Recognized in Balance Sheet Accrued liabilities $ (0.1) $ (0.1) $ (0.1) $ (0.1) Other long-term liabilities (19.2) (19.7) (1.0) (0.9) Net amount recognized $ (19.3) $ (19.8) $ (1.1) $ (1.0) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial gain (loss) $ (21.7) $ (20.3) $ 0.2 $ 0.2 Prior service credits 0.1 0.1 — — Net amount recognized $ (21.6) $ (20.2) $ 0.2 $ 0.2 Weighted‑Average Assumptions Used to Determine Projected Benefit Obligations Discount rate 2.3 % 3.2 % 2.2 % 3.2 % Average rate of increase in compensation — % — % — % — % Interest credit rate 3.8 % 3.8 % — % — % Initial healthcare cost trend rate N/A N/A 5.5 % 5.8 % Ultimate healthcare cost trend rate N/A N/A 4.5 % 4.5 % |
Schedule of Assumptions Used | Pension Postretirement 2020 2019 2020 2019 Amounts Recognized in Balance Sheet Accrued liabilities $ (0.1) $ (0.1) $ (0.1) $ (0.1) Other long-term liabilities (19.2) (19.7) (1.0) (0.9) Net amount recognized $ (19.3) $ (19.8) $ (1.1) $ (1.0) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial gain (loss) $ (21.7) $ (20.3) $ 0.2 $ 0.2 Prior service credits 0.1 0.1 — — Net amount recognized $ (21.6) $ (20.2) $ 0.2 $ 0.2 Weighted‑Average Assumptions Used to Determine Projected Benefit Obligations Discount rate 2.3 % 3.2 % 2.2 % 3.2 % Average rate of increase in compensation — % — % — % — % Interest credit rate 3.8 % 3.8 % — % — % Initial healthcare cost trend rate N/A N/A 5.5 % 5.8 % Ultimate healthcare cost trend rate N/A N/A 4.5 % 4.5 % |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The benefit obligations and fair value of plan assets for the Company’s qualified and non-qualified pension and postretirement plans with projected benefit obligations or accumulated benefit obligations in excess of plan assets are as follows (in millions): Pension Postretirement 2020 2019 2020 2019 Plans with Benefit Obligations in Excess of Plan Assets Projected benefit obligations $ 176.8 $ 163.5 $ 1.1 $ 1.0 Accumulated benefit obligations 176.8 163.5 — — Fair value of plan assets 157.5 143.7 — — |
Schedule of Net Periodic Costs | The following table sets forth the net periodic pension cost (benefit) (in millions): Years Ended December 31, 2020 2019 2018 Components of Net Periodic Pension Cost (Benefit): Interest cost $ 5.1 $ 6.2 $ 5.7 Expected return on plan assets (6.1) (5.2) (6.0) Net amortization of actuarial net loss 0.7 1.1 0.7 Settlement loss 1.0 0.8 1.2 Net periodic pension cost (benefit) $ 0.7 $ 2.9 $ 1.6 Weighted‑Average Assumptions Used to Determine Net Periodic Pension Cost (Benefit) Discount rate 3.2 % 4.3 % 3.6 % Expected return on assets 5.2 % 5.8 % 5.6 % Average rate of increase in compensation — % — % — % Interest credit rate 3.8 % 3.8 % 3.8 % |
Schedule of Allocation of Plan Assets | The fair value measurements of most plan assets are based upon significant other observable inputs (Level 2), except for the high yield mutual fund and cash which are based upon quoted market prices in active markets for identical assets (Level 1). The following represents the Company's pension plan assets (in millions): Asset Category December 31, 2020 December 31, 2019 Cash $ 3.0 $ 2.3 Short Term Investments 1.5 0.1 Equity Securities: U.S. Large Cap 19.4 20.0 U.S. Mid Cap 3.5 4.6 U.S. Small Cap 0.5 1.2 International Developed 17.9 18.6 International Emerging Markets 6.5 6.9 Fixed Income Securities: U.S. Treasuries 22.9 22.2 Corporate Bonds 49.8 41.5 Government Bonds 10.3 9.9 Municipal Bonds 3.1 2.8 Mortgage-Backed Securities 2.3 2.9 Asset-Backed Securities 2.1 2.5 Bank Loans 7.4 7.1 Preferreds 7.3 — Other — 1.1 Total fair value of pension plan assets $ 157.5 $ 143.7 |
Schedule of Expected Benefit Payments | The following table presents estimated future benefit payments (in millions): Pension Postretirement 2021 $ 7.0 $ 0.1 2022 7.2 0.1 2023 8.3 0.1 2024 9.5 0.1 2025 10.4 0.1 2026-2030 63.9 0.3 $ 106.3 $ 0.8 |
Schedule of Multiemployer Plans | There are no plans where the amount contributed by the Company represents more than 5% of the total contributions to the plan for the years ended December 31, 2020, 2019 and 2018. (In millions) EIN / Pension Pension FIP / Contributions Surcharge Imposed Expiration Pension Fund 2020 2019 2020 2019 2018 Midwest Operating Engineers 36-6140097 Green Green N/A $ 0.9 $ 1.0 $ 0.9 N/A 5/31/2021 Other Plans (a) 1.1 1.2 1.1 Total contributions $ 2.0 $ 2.2 $ 2.0 (a) Consists of six plans, none of which are individually significant to the Company. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Components of Stock-Based Compensation Expense | The following table summarizes the expenses and associated income tax benefits recognized (in millions): Year Ended December 31, 2020 2019 2018 Compensation expense $ 16.4 $ 19.5 $ 13.4 Income tax benefit (4.2) (5.1) (3.5) Total $ 12.2 $ 14.4 $ 9.9 |
Summary of Stock Option Activity | A summary of option activity is presented below. Options Weighted Weighted Aggregate Intrinsic (a) Outstanding at December 31, 2019 342,498 $ 37.94 Granted — — Exercised (165,327) 33.51 Forfeited or expired (21,580) 46.99 Outstanding at December 31, 2020 155,591 $ 41.38 Expected to Vest at December 31, 2020 — $ — — $ — Exercisable at December 31, 2020 155,591 $ 41.38 3.1 $ 3.9 (a) Market price per share on December 31, 2020 was $66.41. The intrinsic value is zero for options with exercise prices above market value. |
Stock Options by Exercise Price Range | Stock options as of December 31, 2020: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Weighted Number Outstanding Weighted Weighted $30.01-40.00 111,006 33.19 2.6 111,006 33.19 2.6 40.01-50.00 629 43.59 0.2 629 43.59 0.2 50.01-60.00 29,892 58.22 4.5 29,892 58.22 4.5 70.01-80.00 14,064 70.14 4.2 14,064 70.14 4.2 155,591 $ 41.38 155,591 $ 41.38 |
Additional Information Pertaining to Option Activity | Additional information pertaining to stock option activity under the Omnibus Plan is as follows (in millions): Year Ended December 31, 2020 2019 2018 Aggregate intrinsic value of stock options exercised (a) $ 3.7 $ 0.3 $ 0.5 Cash received from the exercise of stock options 5.6 0.8 0.5 Tax benefit realized on exercise of stock options 1.0 0.1 0.1 (a) The intrinsic value is the difference between the market value of the shares on the exercise date and the exercise price of the option. |
Summary of PSU Activity | A summary of the PSU activity is presented below. Units Weighted Nonvested at December 31, 2019 321,793 $ 48.91 Granted 181,693 38.56 Vested (143,696) 47.78 Performance change 49,716 48.33 Forfeited (18,741) 45.57 Nonvested at December 31, 2020 390,765 $ 44.60 |
Summary of RSU Activity | A summary of the RSU activity under the Omnibus Plan is presented below. Units Weighted Nonvested at December 31, 2019 411,069 $ 47.17 Granted 292,669 35.36 Vested (267,688) 46.41 Forfeited (23,296) 41.95 Nonvested at December 31, 2020 412,754 $ 39.65 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income (loss) before income taxes for the periods were as follows (in millions): Years Ended December 31, 2020 2019 2018 Domestic $ 95.5 $ 61.9 $ 60.5 Foreign (1.4) 1.7 8.3 Income before income taxes $ 94.1 $ 63.6 $ 68.8 |
Summary of Provision for Income Taxes | The provision (benefit) for income taxes consists of the following (in millions): Years Ended December 31, 2020 2019 2018 Current: Federal $ — $ (1.4) $ 2.2 Foreign 1.8 3.5 1.9 State and local 6.1 3.7 5.5 Total current 7.9 5.8 9.6 Deferred: Federal 22.5 15.9 (7.0) Foreign (7.1) 0.4 (1.9) State and local (2.9) (6.0) (1.0) Total deferred 12.5 10.3 (9.9) Total income tax provision (benefit) $ 20.4 $ 16.1 $ (0.3) |
Schedule of U.S. and Foreign Deferred Tax Assets and Liabilities | The principal items of the U.S. and foreign net deferred tax assets (liabilities) are as follows (in millions): December 31, 2020 December 31, 2019 Deferred tax assets: Employee benefit plans $ 5.3 $ 5.5 Tax credit carryforwards 0.5 2.1 Right-of-use assets 48.5 54.7 Accrued expenses 37.0 35.0 Net operating loss carryforwards 75.1 122.9 Total deferred tax assets 166.4 220.2 Less: valuation allowance (3.2) (9.0) Total net deferred tax assets 163.2 211.2 Deferred tax liabilities: Lease liabilities (46.4) (53.2) Outside basis difference in foreign subsidiaries and other (1.8) (2.0) Depreciation on tangible assets (517.4) (545.7) Intangible assets (71.6) (69.6) Total deferred tax liabilities (637.2) (670.5) Net deferred tax liability $ (474.0) $ (459.3) |
Reconciliation of Statutory and Effective Tax Rates | The income tax in the accompanying consolidated statements of operations differs from the income tax calculated by applying the statutory federal income tax rate to income (loss) before income taxes due to the following (in millions): Years Ended December 31, 2020 2019 2018 Income tax (benefit) provision at statutory rate $ 19.8 $ 13.3 $ 14.4 Increases (decreases) resulting from: Foreign taxes (0.1) 0.9 0.9 State and local income taxes, net of federal income tax 3.1 (3.7) 3.6 Federal and foreign 3.5 3.1 1.1 Enactment of the 2017 Tax Act (a) — — (20.8) Change in valuation allowance (5.8) 2.6 (1.5) Outside basis difference in foreign subsidiaries — (0.9) 0.9 All other items, net (0.1) 0.8 1.1 Income tax (benefit) provision $ 20.4 $ 16.1 $ (0.3) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the accumulated other comprehensive income (loss) balance by component (net of tax) are presented in the tables below (in millions): Pension and Other Post-Employment Benefits Unrealized Gains on Hedging Instruments Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2019 $ (16.0) $ 1.2 $ (94.9) $ (109.7) Other comprehensive income before reclassification (3.2) — 3.7 0.5 Amounts reclassified from accumulated other comprehensive loss 1.3 (1.2) 2.1 2.2 Net current period other comprehensive income (1.9) (1.2) 5.8 2.7 Balance at December 31, 2020 $ (17.9) $ — $ (89.1) $ (107.0) Pension and Other Post-Employment Benefits Unrealized Gains on Hedging Instruments Foreign Currency Items Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2018 $ (18.7) $ 2.7 $ (106.4) $ (122.4) Other comprehensive income before reclassification 3.3 (1.5) 11.5 13.3 Amounts reclassified from accumulated other comprehensive loss (0.6) — — (0.6) Net current period other comprehensive income 2.7 (1.5) 11.5 12.7 Balance at December 31, 2019 $ (16.0) $ 1.2 $ (94.9) $ (109.7) |
Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified from accumulated other comprehensive income (loss) to net income were as follows (in millions): Twelve Months Ended December 31, Pension and other postretirement benefit plans 2020 2019 2018 Statement of Operations Caption Amortization of actuarial losses $ 0.7 $ 1.1 $ 0.7 Selling, general and administrative Settlement loss 1.0 0.8 1.2 Selling, general and administrative Total 1.7 1.9 1.9 Tax benefit (provision) (0.4) (2.5) 1.0 Income tax benefit (provision) Total reclassifications for the period 1.3 (0.6) 2.9 Hedging Gain on settlement (1.5) — — Interest expense, net Tax provision 0.3 — — Income tax benefit (provision) Total reclassifications for the period (1.2) — — Reclassification of foreign currency items 2.1 — — Other expense (income), net Total reclassifications for the period $ 2.2 $ (0.6) $ 2.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Debt | The fair value of the Company's 2027 Notes are estimated based on quoted market rates as well as borrowing rates currently available to the Company for loans with similar terms and average maturities (Level 2 inputs) (in millions). December 31, 2020 December 31, 2019 Nominal Unpaid Principal Balance Aggregate Fair Value Nominal Unpaid Principal Balance Aggregate Fair Value 2027 Notes $ 1,200.0 $ 1,276.4 $ 1,200.0 $ 1,265.0 |
Equity Earnings Per Share (Tabl
Equity Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data). Years Ended December 31, 2020 2019 2018 Basic and diluted earnings per share: Numerator: Net income, basic and diluted $ 73.7 $ 47.5 $ 69.1 Denominator: Basic weighted average common shares 29.1 28.7 28.4 Stock options, RSUs and PSUs 0.3 0.4 0.5 Weighted average shares used to calculate diluted earnings per share 29.4 29.1 28.9 Earnings per share: Basic $ 2.53 $ 1.66 $ 2.43 Diluted $ 2.51 $ 1.63 $ 2.39 Antidilutive stock options, RSUs and PSUs 0.4 0.3 0.2 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Long-lived Assets by Geographic Areas | For each of the last three fiscal years, revenues from our external customers attributed to the U.S. and all foreign countries (primarily Canada) in total are set forth below: Years Ended December 31, 2020 2019 2018 United States $ 1,624.4 $ 1,796.6 $ 1,757.8 International 156.9 202.4 218.9 Total revenue $ 1,781.3 $ 1,999.0 $ 1,976.7 Geographic information for long-lived assets, which consist primarily of rental equipment and property and equipment, was as follows (in millions): December 31, 2020 December 31, 2019 Total assets United States $ 3,285.9 $ 3,360.4 International 302.5 456.6 Total $ 3,588.4 $ 3,817.0 Rental equipment, net United States $ 2,061.3 $ 2,254.2 International 199.1 235.8 Total $ 2,260.4 $ 2,490.0 Property and equipment, net United States $ 271.9 $ 291.5 International 18.5 20.3 Total $ 290.4 $ 311.8 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Operating Results | First Quarter Second Quarter Third Quarter Fourth Quarter (In millions, except per share data) 2020 2020 2020 2020 Revenues $ 436.2 $ 368.0 $ 456.7 $ 520.4 Income (loss) before income taxes (2.6) 0.1 51.6 45.0 Net income (loss) (a) (3.7) 2.0 39.9 35.5 Earnings (loss) per share: Basic $ (0.13) $ 0.07 $ 1.37 $ 1.22 Diluted $ (0.13) $ 0.07 $ 1.35 $ 1.19 First Quarter Second Quarter Third Quarter Fourth Quarter (In millions, except per share data) 2019 2019 2019 2019 Revenues $ 475.7 $ 475.1 $ 508.1 $ 540.1 Income (loss) before income taxes (9.8) 15.0 5.2 53.2 Net income (loss) (b) (6.7) 9.7 9.4 35.1 Earnings (loss) per share: Basic $ (0.23) $ 0.34 $ 0.33 1.22 Diluted $ (0.23) $ 0.33 $ 0.32 $ 1.20 (a) Net income (loss) for the first, second and fourth quarters includes impairment charges of $6.3 million, $3.2 million and $5.9 million as discussed in Note 8 , " Assets Held for Sale and Impairments ." (b) Net income for the second quarter includes a restructuring charge of $7.7 million, the third quarter includes a loss on the early extinguishment of debt of $53.6 million and the fourth quarter includes an impairment of $4.0 million related to certain assets held for sale . |
Background (Details)
Background (Details) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2020property | Apr. 30, 2020property | Dec. 31, 2020company_operated_branch | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of locations | 2 | 6 | 277 |
Basis of Presentation and Rec_4
Basis of Presentation and Recently Issued Accounting Pronouncements - Concentration of Credit Risk (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 3.00% | 3.00% | 3.00% |
Customer concentration risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 5.00% | 5.00% |
Basis of Presentation and Rec_5
Basis of Presentation and Recently Issued Accounting Pronouncements - Rental Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Rental Equipment [Line Items] | |
Holding period for revenue earning equipment | 1 year |
Maximum | |
Rental Equipment [Line Items] | |
Holding period for revenue earning equipment | 15 years |
Basis of Presentation and Rec_6
Basis of Presentation and Recently Issued Accounting Pronouncements - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 8 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 33 years |
Service vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Service vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 13 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 1 year |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 15 years |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 1 year |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 2 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful life | 10 years |
Basis of Presentation and Rec_7
Basis of Presentation and Recently Issued Accounting Pronouncements - Goodwill and Indefinite-Lived Intangible Assets and Finite Lived Intangible and Long-Lived Assets (Details) | 12 Months Ended |
Dec. 31, 2020reporting_unit | |
Accounting Policies [Abstract] | |
Number of reporting units | 1 |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated economic lives | 3 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated economic lives | 14 years |
Basis of Presentation and Rec_8
Basis of Presentation and Recently Issued Accounting Pronouncements - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 2.2 | $ 2.7 | $ 1 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 3.00% | 3.00% | 3.00% |
Contract with customer, asset, after allowance for credit loss, current | $ 13.8 | $ 15.6 | |
United States | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 91.50% | 89.90% | 88.90% |
Customer concentration risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 5.00% | 5.00% |
Revenue Recognition - Applicabl
Revenue Recognition - Applicable Accounting Guidance for Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Equipment rental | $ 1,401.1 | $ 1,549.9 | $ 1,509.7 | ||||||||
Other rental revenue | 142.6 | 151.9 | 148.6 | ||||||||
Total equipment rentals | 1,543.7 | 1,701.8 | 1,658.3 | ||||||||
Sales of rental equipment | 198.5 | 242.8 | 256.2 | ||||||||
Sales of new equipment, parts and supplies | 28.2 | 44 | 49.3 | ||||||||
Service and other revenues | 10.9 | 10.4 | 12.9 | ||||||||
Revenues | $ 520.4 | $ 456.7 | $ 368 | $ 436.2 | $ 540.1 | $ 508.1 | $ 475.1 | $ 475.7 | 1,781.3 | 1,999 | 1,976.7 |
Topic 842 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Equipment rental | 1,401.1 | 1,549.9 | |||||||||
Other rental revenue | 55.9 | 53.9 | |||||||||
Total equipment rentals | 1,457 | 1,603.8 | |||||||||
Sales of rental equipment | 0 | 0 | |||||||||
Sales of new equipment, parts and supplies | 0 | 0 | |||||||||
Service and other revenues | 0 | 0 | |||||||||
Revenues | 1,457 | 1,603.8 | |||||||||
Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Equipment rental | 0 | 0 | 0 | ||||||||
Other rental revenue | 86.7 | 98 | 88.4 | ||||||||
Total equipment rentals | 86.7 | 98 | 88.4 | ||||||||
Sales of rental equipment | 198.5 | 242.8 | 256.2 | ||||||||
Sales of new equipment, parts and supplies | 28.2 | 44 | 49.3 | ||||||||
Service and other revenues | 10.9 | 10.4 | 12.9 | ||||||||
Revenues | 324.3 | 395.2 | 406.8 | ||||||||
Topic 840 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Equipment rental | 1,509.7 | ||||||||||
Other rental revenue | 60.2 | ||||||||||
Total equipment rentals | 1,569.9 | ||||||||||
Sales of rental equipment | 0 | ||||||||||
Sales of new equipment, parts and supplies | 0 | ||||||||||
Service and other revenues | 0 | ||||||||||
Revenues | 1,569.9 | ||||||||||
Delivery and pick-up | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Other rental revenue | 86.7 | 98 | 88.4 | ||||||||
Delivery and pick-up | Topic 842 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Other rental revenue | 0 | 0 | |||||||||
Delivery and pick-up | Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Other rental revenue | 86.7 | 98 | 88.4 | ||||||||
Delivery and pick-up | Topic 840 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Other rental revenue | 0 | ||||||||||
Other | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Other rental revenue | 55.9 | 53.9 | 60.2 | ||||||||
Other | Topic 842 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Other rental revenue | 55.9 | 53.9 | |||||||||
Other | Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Other rental revenue | $ 0 | $ 0 | 0 | ||||||||
Other | Topic 840 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Other rental revenue | $ 60.2 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Sales of rental equipment | $ 198.5 | $ 242.8 | $ 256.2 |
Sales of new equipment | 11.5 | 21 | 21.3 |
Sales of parts and supplies | 16.7 | 23 | 28 |
Total | $ 226.7 | $ 286.8 | $ 305.5 |
Rental Equipment - Rental Equip
Rental Equipment - Rental Equipment Components (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Rental Equipment [Abstract] | ||
Rental equipment | $ 3,613.5 | $ 3,821.6 |
Less: Accumulated depreciation | (1,353.1) | (1,331.6) |
Rental equipment, net | $ 2,260.4 | $ 2,490 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Finance leases, gross | $ 624.1 | $ 628.4 |
Less: accumulated depreciation | (333.7) | (316.6) |
Property and equipment, net | 290.4 | 311.8 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Finance leases, gross | 117.3 | 116.1 |
Service vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Finance leases, gross | 278.7 | 305.3 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Finance leases, gross | 105.8 | 94.3 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 23.6 | 23.3 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 75.9 | 64.9 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Finance leases, gross | 15.6 | 15.1 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7.2 | $ 9.4 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 54.5 | $ 54 | $ 51.9 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment and Related Amortization Recorded Under Capital Leases (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Finance leases, gross | $ 73.4 | $ 102.8 |
Less: accumulated depreciation | (32.6) | (46.2) |
Finance leases, net | 40.8 | 56.6 |
Service vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Finance leases, gross | 72.7 | 101.8 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Finance leases, gross | 0.7 | 1 |
Land, building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Finance leases, gross | 77.4 | 77.4 |
Less: accumulated depreciation | (38.7) | (36.1) |
Finance leases, net | $ 38.7 | $ 41.3 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | |
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 0 | 0 | |
Amortization of intangible assets | 8,000,000 | $ 7,000,000 | $ 5,400,000 |
Intangible assets, excluding internally developed software yet to be placed into service | |||
Finite-Lived Intangible Assets [Line Items] | |||
2021 | 8,800,000 | ||
2022 | 6,500,000 | ||
2023 | 3,600,000 | ||
2024 | 700,000 | ||
2025 | $ 4,500,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of the period | $ 768.5 | $ 765.9 |
Accumulated impairment losses, beginning of the period | (674.9) | (674.9) |
Goodwill, net, beginning of the period | 93.6 | 91 |
Additions | 6.9 | 2.6 |
Goodwill, end of the period | 775.4 | 768.5 |
Accumulated impairment losses, end of the period | (674.9) | (674.9) |
Goodwill, net, end of the period | $ 100.5 | $ 93.6 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | $ 58.6 | $ 46.3 |
Accumulated Amortization | (33.3) | (25.3) |
Amortizable intangible assets, net carrying value | 25.3 | 21 |
Total other intangible assets, gross carrying amount | 329.2 | 316.8 |
Intangible assets, net | 295.9 | 291.5 |
Customer-related and non-compete agreements | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 18.7 | 11.4 |
Accumulated Amortization | (10) | (8.9) |
Amortizable intangible assets, net carrying value | 8.7 | 2.5 |
Internally developed software | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 39.9 | 34.9 |
Accumulated Amortization | (23.3) | (16.4) |
Amortizable intangible assets, net carrying value | 16.6 | 18.5 |
Software Development | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, net carrying value | 1.2 | 1.4 |
Trade name | ||
Amortizable intangible assets: | ||
Indefinite-lived intangible assets | $ 270.6 | $ 270.5 |
Business Combination - Narrativ
Business Combination - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020employeeproperty | Sep. 30, 2020property | Apr. 30, 2020property | Dec. 31, 2020USD ($)employeepropertycompany_operated_branch | |
Business Acquisition [Line Items] | ||||
Number of locations | 2 | 6 | 277 | |
Champion | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ | $ 47.9 | |||
Number of employees | employee | 100 | 100 | ||
Number of locations | property | 4 | 12 |
Business Combination - Purchase
Business Combination - Purchase Price Allocation (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 100.5 | $ 93.6 | $ 91 |
Champion | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 3.4 | ||
Other current assets | 0.3 | ||
Rental equipment | 28.3 | ||
Property and equipment | 2.1 | ||
Intangibles | 7.3 | ||
Total identifiable assets acquired | 41.4 | ||
Current liabilities | 0.4 | ||
Net identifiable assets acquired | 41 | ||
Goodwill | 6.9 | ||
Net assets acquired | $ 47.9 |
Business Combination - Fair val
Business Combination - Fair value and Useful Lives (Details) - Champion - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Fair value | $ 7.3 | |
Customer-related and non-compete agreements | ||
Business Acquisition [Line Items] | ||
Fair value | 7.1 | |
Life (years) | 14 years | |
Non-compete agreements | ||
Business Acquisition [Line Items] | ||
Fair value | $ 0.2 | |
Life (years) | 5 years |
Assets Held for Sale and Impa_2
Assets Held for Sale and Impairments - Narrative (Details) $ in Millions | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($)property | Jun. 30, 2020USD ($) | Apr. 30, 2020USD ($)property | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)company_operated_branch | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Goodwill, Impaired [Abstract] | ||||||||||||
Impairment | $ 4.8 | $ 5.9 | $ 3.2 | $ 6.3 | $ 15.4 | $ 5.1 | $ 0.1 | |||||
Impairment to financial reporting and consolidation system | $ 1.1 | |||||||||||
Number of locations | 2 | 6 | 277 | |||||||||
Loss on sale of assets and asset impairment charges | $ 0.2 | $ 2.8 | ||||||||||
Impairment of long-lived assets to be disposed of | $ 1.5 | $ 4 | ||||||||||
Operating lease, impairment loss | $ 1.7 | |||||||||||
Other assets, current | 4 | |||||||||||
Other assets | $ 8.7 | |||||||||||
Proceeds from disposal of business | $ 24.5 | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, impairment loss | $ 1.7 | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 18 years | |
Lessee, finance lease, renewal term | 20 years | |
2019 plan | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, impairment loss | $ 4.8 | |
Impairment of leasehold | 0.7 | |
Severance costs | $ 2.2 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease, cost | $ 83.1 | $ 100.1 |
Amortization of ROU assets | 11.1 | 12.5 |
Interest on lease liabilities | 1.5 | 1.7 |
Sublease income | (46.6) | (67.2) |
Net lease cost | 49.1 | 47.1 |
Short-term lease, cost | 31.4 | 54.6 |
Variable lease, cost | $ 5.2 | $ 4.3 |
Leases - Balance Sheet Classifi
Leases - Balance Sheet Classification (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Operating lease ROU assets | $ 255.9 | $ 207.3 |
Finance lease, right-of-use asset, statement of financial position [extensible list] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Finance lease ROU assets | $ 40.8 | $ 56.6 |
Total leased assets | 296.7 | 263.9 |
Liabilities, Current [Abstract] | ||
Operating lease, liability, current | $ 32.1 | $ 30.5 |
Finance lease, liability, current, statement of financial position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent |
Finance lease, current | $ 12.2 | $ 21.8 |
Liabilities, Noncurrent [Abstract] | ||
Operating lease, liability, noncurrent | $ 234.1 | $ 182.2 |
Finance lease, liability, noncurrent, statement of financial position [Extensible List] | us-gaap:LongTermDebtNoncurrent | us-gaap:LongTermDebtNoncurrent |
Finance lease, liability, noncurrent | $ 28.6 | $ 34.4 |
Total lease liabilities | 307 | 268.9 |
Accumulated amortization | $ 32.6 | $ 46.2 |
Weighted average remaining lease term: | ||
Weighted average remaining lease term, Operating leases | 10 years 7 months 6 days | |
Weighted average remaining lease term, Finance leases | 5 years 7 months 6 days | |
Weighted average discount rate: | ||
Operating leases | 3.41% | |
Finance leases | 3.24% |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 35.5 | $ 37.9 |
Operating cash flows from finance leases | 1.5 | 1.7 |
Financing cash flows from finance leases | 10.8 | 14.2 |
Operating leases | 144.4 | 76.3 |
Finance leases | $ 1.4 | $ 39.1 |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Financing Lease Liabilities (Details) $ in Millions | Dec. 31, 2020USD ($) |
Operating Leases | |
2021 | $ 39.5 |
2022 | 40 |
2023 | 35.8 |
2024 | 32.5 |
2025 | 26.9 |
After 2026 | 140 |
Total lease payments | 314.7 |
Less: Interest | (48.5) |
Present value of lease liabilities | 266.2 |
Finance Leases | |
2021 | 13 |
2022 | 6.7 |
2023 | 6.5 |
2024 | 6.2 |
2025 | 6.2 |
After 2026 | 5.2 |
Total lease payments | 43.8 |
Less: Interest | (3) |
Present value of lease liabilities | $ 40.8 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefit costs | $ 33.4 | $ 26.8 |
Rebate accrual | 31.9 | 33.6 |
Taxes payable | 29.1 | 16 |
Accrued interest | 31.3 | 32.2 |
Customer related deferrals | 13.5 | 11.3 |
Insurance reserves | 7.8 | 9.2 |
Other | 7.3 | 6.6 |
Total accrued liabilities | $ 154.3 | $ 135.7 |
Debt - Unamortized Debt issuanc
Debt - Unamortized Debt issuance Costs (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 09, 2019 |
Debt Instrument [Line Items] | |||
Nominal Unpaid Principal Balance | $ 1,670,800,000 | ||
Finance leases | 3.24% | ||
Finance lease liabilities | $ 40,800,000 | ||
Unamortized debt issuance costs | (7,100,000) | $ (7,900,000) | |
Total debt | 1,663,700,000 | 2,078,500,000 | |
Less: Current maturities of long-term debt | (12,200,000) | (27,000,000) | |
Long-term debt, net | $ 1,651,500,000 | 2,051,500,000 | |
2027 Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Weighted Average Effective Interest Rate at December 31, 2020 | 5.61% | ||
Weighted Average Stated Interest Rate at December 31, 2020 | 5.50% | 5.50% | |
Nominal Unpaid Principal Balance | $ 1,200,000,000 | 1,200,000,000 | $ 1,200,000,000 |
ABL Credit Facility | Line of credit | Senior secured revolving credit facility | |||
Debt Instrument [Line Items] | |||
Weighted Average Stated Interest Rate at December 31, 2020 | 1.56% | ||
Nominal Unpaid Principal Balance | $ 255,000,000 | 650,000,000 | |
ABL Credit Facility | Line of credit | Senior secured revolving credit facility | Other long- term assets | |||
Debt Instrument [Line Items] | |||
Debt issuance costs, line of credit arrangements, net | $ 7,100,000 | 9,300,000 | |
AR Facility | Line of credit | |||
Debt Instrument [Line Items] | |||
Weighted Average Stated Interest Rate at December 31, 2020 | 1.03% | ||
Nominal Unpaid Principal Balance | $ 175,000,000 | 175,000,000 | |
Capital lease agreements | Capital leases | |||
Debt Instrument [Line Items] | |||
Finance lease liabilities | 40,800,000 | 56,200,000 | |
Other borrowings | Line of credit | |||
Debt Instrument [Line Items] | |||
Nominal Unpaid Principal Balance | $ 0 | $ 5,200,000 |
Debt - Nominal Principal Amount
Debt - Nominal Principal Amounts of Debt Maturities (Details) $ in Millions | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 12.2 |
2022 | 5.8 |
2023 | 5.9 |
2024 | 435.8 |
2025 | 6 |
After 2025 | 1,205.1 |
Total | $ 1,670.8 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jul. 09, 2019 | |
Debt Instrument [Line Items] | |||
Nominal Unpaid Principal Balance | $ 1,670,800,000 | ||
2027 Notes | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 100.00% | ||
2027 Notes | Debt instrument, redemption, period two | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 102.75% | ||
2027 Notes | Debt instrument, redemption, period three | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 101.833% | ||
2027 Notes | Debt instrument, redemption, period four | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 100.917% | ||
2027 Notes | Debt instrument, redemption, period five | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 100.00% | ||
2027 Notes | Debt instrument, redemption, period one | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 105.50% | ||
Redemption price, percentage of principal amount redeemed | 40.00% | ||
2027 Notes | Debt instrument, redemption, period six | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 101.00% | ||
2027 Notes | Debt instrument, redemption, period seven | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 100.00% | ||
2027 Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Nominal Unpaid Principal Balance | $ 1,200,000,000 | $ 1,200,000,000 | $ 1,200,000,000 |
Stated rate | 5.50% | 5.50% |
Debt - ABL Credit Facility (Det
Debt - ABL Credit Facility (Details) | Jul. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2018USD ($) |
Debt Instrument [Line Items] | |||
Fixed charge coverage ratio, minimum | 1 | ||
AR Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 175,000,000 | ||
Other borrowings | Line of credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 10,000,000 | ||
Line of credit facility percentage ratio | 0.00535 | ||
Senior secured revolving credit facility | ABL Credit Facility | Line of credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,750,000,000 | ||
Senior secured revolving credit facility | ABL Credit Facility | Line of credit | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.50% | ||
Senior secured revolving credit facility | ABL Credit Facility | Line of credit | Base Rate | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.50% | ||
Letter of credit | ABL Credit Facility | Line of credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 250,000,000 |
Debt - Outstanding Borrowings (
Debt - Outstanding Borrowings (Details) $ in Millions | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
Remaining Capacity | $ 1,471.6 |
Availability Under Borrowing Base Limitation | 1,380.3 |
AR Facility | |
Debt Instrument [Line Items] | |
Remaining Capacity | 175 |
AR Facility | Line of credit | |
Debt Instrument [Line Items] | |
Remaining Capacity | 0 |
Availability Under Borrowing Base Limitation | 0 |
Senior secured revolving credit facility | ABL Credit Facility | Line of credit | |
Debt Instrument [Line Items] | |
Remaining Capacity | 1,471.6 |
Availability Under Borrowing Base Limitation | $ 1,380.3 |
Debt - Letters of Credit (Detai
Debt - Letters of Credit (Details) $ in Millions | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
Remaining Capacity | $ 1,471.6 |
Letter of credit | ABL Credit Facility | Line of credit | |
Debt Instrument [Line Items] | |
Letters of credit outstanding, amount | 23.4 |
Remaining Capacity | $ 226.6 |
Financing Obligations - Narrati
Financing Obligations - Narrative (Details) - Financing Obligation $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Oct. 31, 2017USD ($)periodproperty | Dec. 31, 2018USD ($)property | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)property | |
Sale Leaseback Transaction [Line Items] | ||||||
Sale leaseback transaction, number of properties | property | 42 | 2 | 2 | |||
Gross proceeds | $ 4.7 | $ 119.5 | $ 6.4 | |||
Sale leaseback transaction, lease term, period (in years) | 20 years | |||||
Sale leaseback transaction, renewal term, number of additional terms | period | 5 | |||||
Sale leaseback transaction, length of each additional period (in years) | 5 years | |||||
Deferred finance costs, issuance costs | $ 2.9 | |||||
Interest expenses | $ 0.5 | $ 0.4 | $ 0.2 |
Financing Obligations - Obligat
Financing Obligations - Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Financing obligations | $ 1,670.8 | |
Less: Current maturities of financing obligations | $ (12.2) | $ (27) |
Financing Obligation | ||
Debt Instrument [Line Items] | ||
Weighted Average Effective Interest Rate at December 31, 2020 | 5.11% | |
Financing obligations | $ 120.5 | 123.5 |
Unamortized financing issuance costs | (2.4) | (2.5) |
Total financing obligations | 118.1 | 121 |
Less: Current maturities of financing obligations | (3.6) | (3.4) |
Financing obligations, net | $ 114.5 | $ 117.6 |
Financing Obligations - Future
Financing Obligations - Future Minimum Financing Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Sale Leaseback Transaction [Line Items] | |
2021 | $ 13 |
2022 | 6.7 |
2023 | 6.5 |
2024 | 6.2 |
2025 | 6.2 |
After 2026 | 5.2 |
Total lease payments | 43.8 |
Less amount representing interest (at a weighted-average interest rate of 5.11%) | (3) |
Finance lease liabilities | 40.8 |
Financing Obligation | |
Sale Leaseback Transaction [Line Items] | |
2021 | 9.5 |
2022 | 9.5 |
2023 | 9.5 |
2024 | 9.5 |
2025 | 9.5 |
After 2026 | 103.4 |
Total lease payments | 150.9 |
Obligations subject to non-cash gain on future sale of property | 34.6 |
Less amount representing interest (at a weighted-average interest rate of 5.11%) | (65) |
Finance lease liabilities | $ 120.5 |
Weighted Average Effective Interest Rate at December 31, 2020 | 5.11% |
Employee Retirement Benefits -
Employee Retirement Benefits - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Provision for defined contribution plans | $ 10.9 | $ 11.4 | $ 10.5 |
Defined benefit plan, actual benefit plan obligation allocations | 99.00% | ||
Asset allocation percentage | 100.00% | ||
Qualified pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contribution | $ 2.5 | $ 2.8 | |
Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Asset allocation percentage | 30.00% | ||
Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Asset allocation percentage | 70.00% |
Employee Retirement Benefits _2
Employee Retirement Benefits - Changes in Projected Benefit Obligation, Changes in Plan Assets and Funded Status of Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension | |||
Change in Projected Benefit Obligations | |||
Benefit obligations at beginning of year | $ 163.5 | $ 148.5 | |
Interest cost | 5.1 | 6.2 | $ 5.7 |
Plan settlements | 8 | 6.3 | |
Benefits paid | (0.3) | (0.4) | |
Actuarial (gain) loss | (16.5) | (15.5) | |
Benefit obligations at end of year | 176.8 | 163.5 | 148.5 |
Change in Fair Value of Plan Assets | |||
Fair value of plan assets at beginning of year | 143.7 | 123.6 | |
Actual return on plan assets | 19.6 | 24 | |
Employer contribution | 2.5 | 2.8 | |
Plan settlements | (8) | (6.3) | |
Benefits paid | (0.3) | (0.4) | |
Fair value of plan assets at end of year | 157.5 | 143.7 | 123.6 |
Funded Status | (19.3) | (19.8) | |
Accumulated benefit obligations | 176.8 | 163.5 | |
Postretirement | |||
Change in Projected Benefit Obligations | |||
Benefit obligations at beginning of year | 1 | 1 | |
Interest cost | 0 | 0 | |
Plan settlements | 0 | 0 | |
Benefits paid | 0 | 0 | |
Actuarial (gain) loss | (0.1) | 0 | |
Benefit obligations at end of year | 1.1 | 1 | 1 |
Change in Fair Value of Plan Assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contribution | 0 | 0 | |
Plan settlements | 0 | 0 | |
Benefits paid | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded Status | $ (1.1) | $ (1) |
Employee Retirement Benefits _3
Employee Retirement Benefits - Amounts Recognized in Balance Sheet and Other Comprehensive Income and Assumptions Used (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension | ||
Amounts Recognized in Balance Sheet | ||
Accrued liabilities | $ (0.1) | $ (0.1) |
Other long-term liabilities | (19.2) | (19.7) |
Net amount recognized | (19.3) | (19.8) |
Amounts Recognized in Accumulated Other Comprehensive Loss | ||
Net actuarial gain (loss) | (21.7) | (20.3) |
Prior service credits | 0.1 | 0.1 |
Net amount recognized | $ (21.6) | $ (20.2) |
Weighted‑Average Assumptions Used to Determine Projected Benefit Obligations | ||
Discount rate | 2.30% | 3.20% |
Average rate of increase in compensation | 0.00% | 0.00% |
Interest credit rate | 3.80% | 3.80% |
Postretirement | ||
Amounts Recognized in Balance Sheet | ||
Accrued liabilities | $ (0.1) | $ (0.1) |
Other long-term liabilities | (1) | (0.9) |
Net amount recognized | (1.1) | (1) |
Amounts Recognized in Accumulated Other Comprehensive Loss | ||
Net actuarial gain (loss) | 0.2 | 0.2 |
Prior service credits | 0 | 0 |
Net amount recognized | $ 0.2 | $ 0.2 |
Weighted‑Average Assumptions Used to Determine Projected Benefit Obligations | ||
Discount rate | 2.20% | 3.20% |
Average rate of increase in compensation | 0.00% | 0.00% |
Interest credit rate | 0.00% | 0.00% |
Initial healthcare cost trend rate | 5.50% | 5.80% |
Ultimate healthcare cost trend rate | 4.50% | 4.50% |
Employee Retirement Benefits _4
Employee Retirement Benefits - Accumulated Benefit Plan Obligation in Excess of Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligations | $ 176.8 | $ 163.5 |
Accumulated benefit obligations | 176.8 | 163.5 |
Fair value of plan assets | 157.5 | 143.7 |
Postretirement | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligations | 1.1 | 1 |
Accumulated benefit obligations | 0 | 0 |
Fair value of plan assets | $ 0 | $ 0 |
Employee Retirement Benefits _5
Employee Retirement Benefits - Net Periodic Costs (Benefits) (Details) - Pension - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 5.1 | $ 6.2 | $ 5.7 |
Expected return on plan assets | (6.1) | (5.2) | (6) |
Net amortization of actuarial net loss | 0.7 | 1.1 | 0.7 |
Settlement loss | 1 | 0.8 | 1.2 |
Net periodic pension cost (benefit) | $ 0.7 | $ 2.9 | $ 1.6 |
Weighted‑Average Assumptions Used to Determine Net Periodic Pension Cost (Benefit) | |||
Discount rate | 3.20% | 4.30% | 3.60% |
Expected return on assets | 5.20% | 5.80% | 5.60% |
Average rate of increase in compensation | 0.00% | 0.00% | 0.00% |
Interest credit rate | 3.80% | 3.80% | 3.80% |
Employee Retirement Benefits _6
Employee Retirement Benefits - Fair Value of Plan Assets (Details) - Pension - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 157.5 | $ 143.7 | $ 123.6 |
Level 1 | Cash | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 3 | 2.3 | |
Level 2 | Total Plan Assets, Excluding Assets Expected to be Transferred in | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 157.5 | 143.7 | |
Level 2 | Short Term Investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 1.5 | 0.1 | |
Level 2 | U.S. Large Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 19.4 | 20 | |
Level 2 | U.S. Mid Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 3.5 | 4.6 | |
Level 2 | U.S. Small Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 0.5 | 1.2 | |
Level 2 | International Developed | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 17.9 | 18.6 | |
Level 2 | International Emerging Markets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 6.5 | 6.9 | |
Level 2 | U.S. Treasuries | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 22.9 | 22.2 | |
Level 2 | Corporate Bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 49.8 | 41.5 | |
Level 2 | Government Bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 10.3 | 9.9 | |
Level 2 | Municipal Bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 3.1 | 2.8 | |
Level 2 | Mortgage-Backed Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 2.3 | 2.9 | |
Level 2 | Asset-Backed Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 2.1 | 2.5 | |
Level 2 | Bank Loans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 7.4 | 7.1 | |
Level 2 | Preferreds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | 7.3 | 0 | |
Level 2 | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 0 | $ 1.1 |
Employee Retirement Benefits _7
Employee Retirement Benefits - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2021 | $ 7 |
2022 | 7.2 |
2023 | 8.3 |
2024 | 9.5 |
2025 | 10.4 |
2026-2030 | 63.9 |
Total expected future benefit payments | 106.3 |
Postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2021 | 0.1 |
2022 | 0.1 |
2023 | 0.1 |
2024 | 0.1 |
2025 | 0.1 |
2026-2030 | 0.3 |
Total expected future benefit payments | $ 0.8 |
Employee Retirement Benefits _8
Employee Retirement Benefits - Contributions to Multiemployer Plans (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)plan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Multiemployer Plans [Line Items] | |||
Number of other multiemployer plans | plan | 6 | ||
Pension | |||
Multiemployer Plans [Line Items] | |||
Total contributions | $ 2 | $ 2.2 | $ 2 |
Pension | Midwest Operating Engineers | |||
Multiemployer Plans [Line Items] | |||
Total contributions | 0.9 | 1 | 0.9 |
Pension | Other plans | |||
Multiemployer Plans [Line Items] | |||
Total contributions | $ 1.1 | $ 1.2 | $ 1.1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 2,200,000 | ||
Number of shares available for grant (in shares) | 1,579,000 | ||
Unrecognized compensation cost | $ 18.8 | ||
Compensation cost not yet recognized, period for recognition | 1 year 8 months 12 days | ||
Granted (in shares) | 0 | 0 | 0 |
Stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance period | 3 years | 3 years | 3 years |
Weighted average grant date fair value (in USD per share) | $ 38.56 | $ 40.79 | $ 64.51 |
Fair value of PSUs | $ 6.9 | $ 3.4 | $ 3.2 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in USD per share) | $ 35.36 | $ 41.18 | $ 62.89 |
Fair value of PSUs | $ 12.4 | $ 10.7 | $ 3 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 0.00% | ||
Minimum | Stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 7 years | ||
Minimum | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 200.00% | ||
Maximum | Stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Maximum | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Compensation expense | $ 16.4 | $ 19.5 | $ 13.4 |
Income tax benefit | (4.2) | (5.1) | (3.5) |
Total | $ 12.2 | $ 14.4 | $ 9.9 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Option Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options | |||
Outstanding at beginning of period (in shares) | 342,498 | ||
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (165,327) | ||
Forfeited or expired (in shares) | (21,580) | ||
Outstanding at end of period (in shares) | 155,591 | 342,498 | |
Expected to vest at end of period (in shares) | 0 | ||
Exercisable at end of period (in shares) | 155,591 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in USD per share) | $ 37.94 | ||
Granted (in USD per share) | 0 | ||
Exercised (in USD per share) | 33.51 | ||
Forfeited or expired (in USD per share) | 46.99 | ||
Outstanding at the end of the period (in USD per share) | 41.38 | $ 37.94 | |
Expected to Vest at end of period (in USD per share) | 0 | ||
Exercisable at end of period (in USD per share) | $ 41.38 | ||
Weighted-average remaining contractual term, exercisable at end of period | 3 years 1 month 6 days | ||
Aggregate intrinsic value, exercisable at end of period | $ 3.9 | ||
Market price (in USD per share) | $ 66.41 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Options by Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding, number outstanding (in shares) | shares | 155,591 |
Options outstanding, weighted‑ average exercise price (in USD per share) | $ 41.38 |
Options exercisable, number outstanding (in shares) | shares | 155,591 |
Options exercisable, weighted‑ average exercise price (in USD per share) | $ 41.38 |
$30.01-40.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding, number outstanding (in shares) | shares | 111,006 |
Options outstanding, weighted‑ average exercise price (in USD per share) | $ 33.19 |
Options outstanding, weighted‑ average remaining contractual term (Years) | 2 years 7 months 6 days |
Options exercisable, number outstanding (in shares) | shares | 111,006 |
Options exercisable, weighted‑ average exercise price (in USD per share) | $ 33.19 |
Options exercisable, weighted‑ average remaining contractual term (Years) | 2 years 7 months 6 days |
40.01-50.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding, number outstanding (in shares) | shares | 629 |
Options outstanding, weighted‑ average exercise price (in USD per share) | $ 43.59 |
Options outstanding, weighted‑ average remaining contractual term (Years) | 2 months 12 days |
Options exercisable, number outstanding (in shares) | shares | 629 |
Options exercisable, weighted‑ average exercise price (in USD per share) | $ 43.59 |
Options exercisable, weighted‑ average remaining contractual term (Years) | 2 months 12 days |
50.01-60.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding, number outstanding (in shares) | shares | 29,892 |
Options outstanding, weighted‑ average exercise price (in USD per share) | $ 58.22 |
Options outstanding, weighted‑ average remaining contractual term (Years) | 4 years 6 months |
Options exercisable, number outstanding (in shares) | shares | 29,892 |
Options exercisable, weighted‑ average exercise price (in USD per share) | $ 58.22 |
Options exercisable, weighted‑ average remaining contractual term (Years) | 4 years 6 months |
70.01-80.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding, number outstanding (in shares) | shares | 14,064 |
Options outstanding, weighted‑ average exercise price (in USD per share) | $ 70.14 |
Options outstanding, weighted‑ average remaining contractual term (Years) | 4 years 2 months 12 days |
Options exercisable, number outstanding (in shares) | shares | 14,064 |
Options exercisable, weighted‑ average exercise price (in USD per share) | $ 70.14 |
Options exercisable, weighted‑ average remaining contractual term (Years) | 4 years 2 months 12 days |
Stock option | $30.01-40.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, lower range limit (in USD per share) | $ 30.01 |
Range of exercise prices, upper range limit (in USD per share) | 40 |
Stock option | 40.01-50.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, lower range limit (in USD per share) | 40.01 |
Range of exercise prices, upper range limit (in USD per share) | 50 |
Stock option | 50.01-60.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, lower range limit (in USD per share) | 50.01 |
Range of exercise prices, upper range limit (in USD per share) | 60 |
Stock option | 70.01-80.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, lower range limit (in USD per share) | 70.01 |
Range of exercise prices, upper range limit (in USD per share) | $ 80 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information Pertaining to Option Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Aggregate intrinsic value of stock options exercised | $ 3.7 | $ 0.3 | $ 0.5 |
Proceeds from exercise of stock options | 5.6 | 0.8 | 0.5 |
Tax benefit realized on exercise of stock options | $ 1 | $ 0.1 | $ 0.1 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of PSU Activity (Details) - Performance stock units - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Units | |||
Nonvested at beginning of period (in shares) | 321,793 | ||
Grants in period (in shares) | 181,693 | ||
Vested (in shares) | (143,696) | ||
Performance change (in shares) | 49,716 | ||
Forfeited or expired (in shares) | (18,741) | ||
Nonvested at end of period (in shares) | 390,765 | 321,793 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at beginning of period (in USD per share) | $ 48.91 | ||
Granted (in USD per share) | 38.56 | $ 40.79 | $ 64.51 |
Vested (in USD per share) | 47.78 | ||
Performance change (in USD per share) | 48.33 | ||
Forfeited or expired (in USD per share) | 45.57 | ||
Nonvested at end of period (in USD per share) | $ 44.60 | $ 48.91 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of RSU Activity (Details) - Restricted stock units - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Units | |||
Nonvested at beginning of period (in shares) | 411,069 | ||
Grants in period (in shares) | 292,669 | ||
Vested (in shares) | (267,688) | ||
Forfeited (in shares) | (23,296) | ||
Nonvested at end of period (in shares) | 412,754 | 411,069 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at beginning of period (in USD per share) | $ 47.17 | ||
Granted (in USD per share) | 35.36 | $ 41.18 | $ 62.89 |
Vested (in USD per share) | 46.41 | ||
Forfeited (in USD per share) | 41.95 | ||
Nonvested at end of period (in USD per share) | $ 39.65 | $ 47.17 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | ||||
Deferred tax assets for federal alternative minimum tax | $ 0.5 | |||
Valuation allowance against deferred tax assets | 3.2 | $ 9 | ||
Deferred tax assets, net | 163.2 | 211.2 | ||
Enactment of the tax act | 0 | 0 | $ (20.8) | |
Deferred tax asset provisional income tax expense | 14.3 | |||
Accumulated foreign earnings provisional liability | (35.1) | |||
Potential tax liability | 46.6 | |||
Unrecognized tax benefits | 2.7 | |||
Stockholders' equity attributable to parent | 742 | 644.3 | 572.7 | $ 510.4 |
Retained Earnings (Accumulated Deficit) | ||||
Income Tax Contingency [Line Items] | ||||
Stockholders' equity attributable to parent | (277.5) | $ (351.2) | (391.1) | (462.4) |
Cumulative effect, period of adoption, adjustment | ||||
Income Tax Contingency [Line Items] | ||||
Stockholders' equity attributable to parent | (7.6) | 0 | ||
Cumulative effect, period of adoption, adjustment | Retained Earnings (Accumulated Deficit) | ||||
Income Tax Contingency [Line Items] | ||||
Stockholders' equity attributable to parent | $ (7.6) | $ 2.2 | ||
Federal | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax assets unutilized for net operating losses | 61.8 | |||
NOL subject to expiration | 302.6 | |||
State and local jurisdiction | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax assets associated with operating loss carryforwards subject to expiration | 10.6 | |||
Foreign | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax assets for foreign NOL carryforwards | 2.5 | |||
Operating loss carryforwards | $ 15.5 |
Income Taxes - Income before In
Income Taxes - Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 95.5 | $ 61.9 | $ 60.5 |
Foreign | (1.4) | 1.7 | 8.3 |
Income before income taxes | $ 94.1 | $ 63.6 | $ 68.8 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 0 | $ (1.4) | $ 2.2 |
Foreign | 1.8 | 3.5 | 1.9 |
State and local | 6.1 | 3.7 | 5.5 |
Total current | 7.9 | 5.8 | 9.6 |
Deferred: | |||
Federal | 22.5 | 15.9 | (7) |
Foreign | (7.1) | 0.4 | (1.9) |
State and local | (2.9) | (6) | (1) |
Total deferred | 12.5 | 10.3 | (9.9) |
Total income tax provision (benefit) | $ 20.4 | $ 16.1 | $ (0.3) |
Income Taxes - Schedule of U.S.
Income Taxes - Schedule of U.S. and Foreign Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Employee benefit plans | $ 5.3 | $ 5.5 |
Tax credit carryforwards | 0.5 | 2.1 |
Right-of-use assets | 48.5 | 54.7 |
Accrued expenses | 37 | 35 |
Net operating loss carryforwards | 75.1 | 122.9 |
Total deferred tax assets | 166.4 | 220.2 |
Less: valuation allowance | (3.2) | (9) |
Total net deferred tax assets | 163.2 | 211.2 |
Deferred tax liabilities: | ||
Lease liabilities | (46.4) | (53.2) |
Outside basis difference in foreign subsidiaries and other | (1.8) | (2) |
Depreciation on tangible assets | (517.4) | (545.7) |
Intangible assets | (71.6) | (69.6) |
Total deferred tax liabilities | (637.2) | (670.5) |
Net deferred tax liability | $ (474) | $ (459.3) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory and Effective Tax Rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax (benefit) provision at statutory rate | $ 19.8 | $ 13.3 | $ 14.4 |
Foreign taxes | (0.1) | 0.9 | 0.9 |
State and local income taxes, net of federal income tax | 3.1 | (3.7) | 3.6 |
Federal and foreign | 3.5 | 3.1 | 1.1 |
Enactment of the 2017 Tax Act | 0 | 0 | (20.8) |
Change in valuation allowance | (5.8) | 2.6 | (1.5) |
Outside basis difference in foreign subsidiaries | 0 | (0.9) | 0.9 |
All other items, net | (0.1) | 0.8 | 1.1 |
Total income tax provision (benefit) | $ 20.4 | $ 16.1 | $ (0.3) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 644.3 | $ 572.7 | $ 510.4 |
Total other comprehensive income (loss) | 2.7 | 12.7 | (21.6) |
Ending balance | 742 | 644.3 | 572.7 |
Pension and Other Post-Employment Benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (16) | (18.7) | |
Other comprehensive income before reclassification | (3.2) | 3.3 | |
Amounts reclassified from accumulated other comprehensive loss | 1.3 | (0.6) | |
Total other comprehensive income (loss) | (1.9) | 2.7 | |
Ending balance | (17.9) | (16) | (18.7) |
Unrealized Gains on Hedging Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 1.2 | 2.7 | |
Other comprehensive income before reclassification | 0 | (1.5) | |
Amounts reclassified from accumulated other comprehensive loss | (1.2) | 0 | |
Total other comprehensive income (loss) | (1.2) | (1.5) | |
Ending balance | 0 | 1.2 | 2.7 |
Foreign Currency Items | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (94.9) | (106.4) | |
Other comprehensive income before reclassification | 3.7 | 11.5 | |
Amounts reclassified from accumulated other comprehensive loss | 2.1 | 0 | |
Total other comprehensive income (loss) | 5.8 | 11.5 | |
Ending balance | (89.1) | (94.9) | (106.4) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (109.7) | (122.4) | (98.6) |
Other comprehensive income before reclassification | 0.5 | 13.3 | |
Amounts reclassified from accumulated other comprehensive loss | 2.2 | (0.6) | |
Total other comprehensive income (loss) | 2.7 | 12.7 | |
Ending balance | $ (107) | $ (109.7) | $ (122.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Selling, general and administrative | $ 257.4 | $ 294.8 | $ 311.3 | ||||||||
Total | $ 45 | $ 51.6 | $ 0.1 | $ (2.6) | $ 53.2 | $ 5.2 | $ 15 | $ (9.8) | 94.1 | 63.6 | 68.8 |
Tax benefit (provision) | (20.4) | (16.1) | 0.3 | ||||||||
Net income | $ 35.5 | $ 39.9 | $ 2 | $ (3.7) | $ 35.1 | $ 9.4 | $ 9.7 | $ (6.7) | 73.7 | 47.5 | 69.1 |
Interest expense, net | 92.6 | 173.5 | 137 | ||||||||
Other expense (income), net | (3.9) | 2.4 | 0.2 | ||||||||
Hedging | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income | (1.2) | 0 | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income | 2.2 | (0.6) | 2.9 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of actuarial losses | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Selling, general and administrative | 0.7 | 1.1 | 0.7 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Settlement loss | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Selling, general and administrative | 1 | 0.8 | 1.2 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefit plans | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total | 1.7 | 1.9 | 1.9 | ||||||||
Tax benefit (provision) | (0.4) | (2.5) | 1 | ||||||||
Net income | 1.3 | (0.6) | 2.9 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Hedging | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax benefit (provision) | 0.3 | 0 | 0 | ||||||||
Interest expense, net | (1.5) | 0 | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Items | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other expense (income), net | $ 2.1 | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Litigation settlement, amount awarded to other party | $ 16 | |
Guarantor obligations, maximum exposure, undiscounted | $ 5.3 | |
THC | ||
Loss Contingencies [Line Items] | ||
Related party indemnification percentage | 15.00% |
Fair Value Measurements - Borro
Fair Value Measurements - Borrowing Rates (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 09, 2019 |
Derivatives, Fair Value [Line Items] | |||
Nominal Unpaid Principal Balance | $ 1,670,800,000 | ||
Estimate of fair value measurement | |||
Derivatives, Fair Value [Line Items] | |||
Aggregate Fair Value | 1,276,400,000 | $ 1,265,000,000 | |
2027 Notes | Senior Notes | |||
Derivatives, Fair Value [Line Items] | |||
Nominal Unpaid Principal Balance | $ 1,200,000,000 | $ 1,200,000,000 | $ 1,200,000,000 |
Equity Earnings Per Share - Com
Equity Earnings Per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||||||||||
Net income, basic and diluted | $ 35.5 | $ 39.9 | $ 2 | $ (3.7) | $ 35.1 | $ 9.4 | $ 9.7 | $ (6.7) | $ 73.7 | $ 47.5 | $ 69.1 |
Denominator: | |||||||||||
Basic weighted average common shares (in shares) | 29.1 | 28.7 | 28.4 | ||||||||
Stock options, RSUs and PSUs (in shares) | 0.3 | 0.4 | 0.5 | ||||||||
Weighted average shares used to calculate diluted earnings per share (in shares) | 29.4 | 29.1 | 28.9 | ||||||||
Earnings per share: | |||||||||||
Basic (in USD per share) | $ 1.22 | $ 1.37 | $ 0.07 | $ (0.13) | $ 1.22 | $ 0.33 | $ 0.34 | $ (0.23) | $ 2.53 | $ 1.66 | $ 2.43 |
Diluted (in USD per share) | $ 1.19 | $ 1.35 | $ 0.07 | $ (0.13) | $ 1.20 | $ 0.32 | $ 0.33 | $ (0.23) | $ 2.51 | $ 1.63 | $ 2.39 |
Antidilutive stock options, RSUs and PSUs | |||||||||||
Earnings per share: | |||||||||||
Antidilutive stock options, RSUs and PSUs (in shares) | 0.4 | 0.3 | 0.2 |
Related Party Transactions (Det
Related Party Transactions (Details) - Nomination and standstill agreement - Icahn group - shares | Sep. 15, 2014 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Ownership percentage limit (no more than) | 20.00% | |
Net long position shares held, tranche one (in shares) | 1,900,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Segment Information - Schedule
Segment Information - Schedule of Geographical Information for Long-Lived Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 520.4 | $ 456.7 | $ 368 | $ 436.2 | $ 540.1 | $ 508.1 | $ 475.1 | $ 475.7 | $ 1,781.3 | $ 1,999 | $ 1,976.7 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,624.4 | 1,796.6 | 1,757.8 | ||||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 156.9 | $ 202.4 | $ 218.9 |
Segment Information - Rental Eq
Segment Information - Rental Equipment and Property Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 3,588.4 | $ 3,817 |
Rental equipment, net | 2,260.4 | 2,490 |
Property and equipment, net | 290.4 | 311.8 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,285.9 | 3,360.4 |
Rental equipment, net | 2,061.3 | 2,254.2 |
Property and equipment, net | 271.9 | 291.5 |
International | ||
Segment Reporting Information [Line Items] | ||
Total assets | 302.5 | 456.6 |
Rental equipment, net | 199.1 | 235.8 |
Property and equipment, net | $ 18.5 | $ 20.3 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Selected Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Revenues | $ 520.4 | $ 456.7 | $ 368 | $ 436.2 | $ 540.1 | $ 508.1 | $ 475.1 | $ 475.7 | $ 1,781.3 | $ 1,999 | $ 1,976.7 | ||
Income (loss) before income taxes | 45 | 51.6 | 0.1 | (2.6) | 53.2 | 5.2 | 15 | (9.8) | 94.1 | 63.6 | 68.8 | ||
Net income | $ 35.5 | $ 39.9 | $ 2 | $ (3.7) | $ 35.1 | $ 9.4 | $ 9.7 | $ (6.7) | $ 73.7 | $ 47.5 | $ 69.1 | ||
Basic (in USD per share) | $ 1.22 | $ 1.37 | $ 0.07 | $ (0.13) | $ 1.22 | $ 0.33 | $ 0.34 | $ (0.23) | $ 2.53 | $ 1.66 | $ 2.43 | ||
Diluted (in USD per share) | $ 1.19 | $ 1.35 | $ 0.07 | $ (0.13) | $ 1.20 | $ 0.32 | $ 0.33 | $ (0.23) | $ 2.51 | $ 1.63 | $ 2.39 | ||
Impairment | $ 4.8 | $ 5.9 | $ 3.2 | $ 6.3 | $ 15.4 | $ 5.1 | $ 0.1 | ||||||
Restructuring | $ 7.7 | 0.7 | $ 7.7 | 5 | |||||||||
Loss on extinguishment of debt | $ 53.6 | $ 0 | $ 5.4 | ||||||||||
Impairment of long-lived assets to be disposed of | $ 1.5 | $ 4 |
Schedule II - Valuation of Qual
Schedule II - Valuation of Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables Allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ 18.8 | $ 21.5 | $ 26.9 |
Provisions | 31.4 | 48.2 | 57.8 |
Translation Adjustments | 0 | 0.1 | (0.2) |
Deductions | (34.7) | (51) | (63) |
Ending Balance | 15.5 | 18.8 | 21.5 |
Tax Valuation Allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 9 | 5.8 | 7.6 |
Provisions | 0 | 4.4 | 0.3 |
Translation Adjustments | 0.3 | 0 | (0.3) |
Deductions | (6.1) | (1.2) | (1.8) |
Ending Balance | $ 3.2 | $ 9 | $ 5.8 |