Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 17, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | UNITED RENTALS INC /DE | |
Entity Central Index Key | 1,067,701 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 84,224,499 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 297 | $ 179 |
Accounts receivable, net of allowance for doubtful accounts of $55 at September 30, 2016 and December 31, 2015 | 929 | 930 |
Inventory | 72 | 69 |
Prepaid expenses and other assets | 56 | 116 |
Total current assets | 1,354 | 1,294 |
Goodwill | 3,267 | 3,243 |
Other intangible assets, net | 782 | 905 |
Other long-term assets | 10 | 10 |
Total assets | 12,275 | 12,083 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Short-term debt and current maturities of long-term debt | 609 | 607 |
Accounts payable | 409 | 271 |
Accrued expenses and other liabilities | 402 | 355 |
Total current liabilities | 1,420 | 1,233 |
Long-term debt | 7,393 | 7,555 |
Deferred taxes | 1,863 | 1,765 |
Other long-term liabilities | 60 | 54 |
Total liabilities | 10,736 | 10,607 |
Common stock—$0.01 par value, 500,000,000 shares authorized, 111,944,470 and 84,687,234 shares issued and outstanding, respectively, at September 30, 2016 and 111,586,585 and 91,776,436 shares issued and outstanding, respectively, at December 31, 2015 | 1 | 1 |
Additional paid-in capital | 2,270 | 2,197 |
Retained earnings | 1,501 | 1,088 |
Treasury stock at cost—27,257,236 and 19,810,149 shares at September 30, 2016 and December 31, 2015, respectively | (2,037) | (1,560) |
Accumulated other comprehensive loss | (196) | (250) |
Total stockholders’ equity (deficit) | 1,539 | 1,476 |
Total liabilities and stockholders’ equity | 12,275 | 12,083 |
Rental equipment, net | ||
ASSETS | ||
Property, plant and equipment, net | 6,427 | 6,186 |
Property and equipment, net | ||
ASSETS | ||
Property, plant and equipment, net | $ 435 | $ 445 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 55 | $ 55 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 111,944,470 | 111,586,585 |
Common stock, shares outstanding | 84,687,234 | 91,776,436 |
Treasury stock, shares | 27,257,236 | 19,810,149 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Equipment rentals | $ 1,322 | $ 1,326 | $ 3,643 | $ 3,671 |
Sales of rental equipment | 112 | 141 | 361 | 381 |
Sales of new equipment | 30 | 38 | 96 | 110 |
Contractor supplies sales | 19 | 21 | 60 | 60 |
Service and other revenues | 25 | 24 | 79 | 72 |
Total revenues | 1,508 | 1,550 | 4,239 | 4,294 |
Cost of revenues: | ||||
Cost of equipment rentals, excluding depreciation | 486 | 470 | 1,391 | 1,359 |
Depreciation of rental equipment | 250 | 249 | 735 | 724 |
Cost of rental equipment sales | 68 | 85 | 215 | 217 |
Cost of new equipment sales | 25 | 31 | 79 | 91 |
Cost of contractor supplies sales | 13 | 15 | 41 | 42 |
Cost of service and other revenues | 10 | 10 | 32 | 29 |
Total cost of revenues | 852 | 860 | 2,493 | 2,462 |
Gross profit | 656 | 690 | 1,746 | 1,832 |
Selling, general and administrative expenses | 179 | 178 | 533 | 534 |
Merger related costs | 0 | 0 | 0 | (26) |
Restructuring charge | 4 | 0 | 8 | 1 |
Non-rental depreciation and amortization | 61 | 66 | 192 | 202 |
Operating income | 412 | 446 | 1,013 | 1,121 |
Interest expense, net | 110 | 107 | 349 | 460 |
Other income, net | (1) | (1) | (3) | (10) |
Income before provision for income taxes | 303 | 340 | 667 | 671 |
Provision for income taxes | 116 | 125 | 254 | 255 |
Net income | $ 187 | $ 215 | $ 413 | $ 416 |
Basic earnings per share (in dollars per share) | $ 2.18 | $ 2.28 | $ 4.68 | $ 4.33 |
Diluted earnings per share (in dollars per share) | $ 2.16 | $ 2.25 | $ 4.66 | $ 4.27 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 187 | $ 215 | $ 413 | $ 416 | |
Other comprehensive income (loss), net of tax: | |||||
Foreign currency translation adjustments | (9) | (71) | 51 | (144) | |
Fixed price diesel swaps | 0 | (1) | 3 | 0 | |
Other comprehensive (loss) income | (9) | (72) | 54 | (144) | |
Comprehensive income | [1] | $ 178 | $ 143 | $ 467 | $ 272 |
[1] | There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive (loss) income during 2016 or 2015. There is no tax impact related to the foreign currency translation adjustments, as the earnings are considered permanently reinvested. There were no material taxes associated with other comprehensive (loss) income during 2016 or 2015. |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - 9 months ended Sep. 30, 2016 - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | [2] | |
Balance (in shares) at Dec. 31, 2015 | 92 | [1] | 20 | |||||
Balance at Dec. 31, 2015 | $ 1,476 | $ 1 | $ 2,197 | $ 1,088 | $ (1,560) | $ (250) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 413 | 413 | ||||||
Foreign currency translation adjustments | 51 | 51 | ||||||
Fixed price diesel swaps | 3 | 3 | ||||||
Stock compensation expense, net | 33 | |||||||
Shares repurchased and retired | (11) | |||||||
Repurchase of common stock (in shares) | (7) | [1] | 7 | |||||
Repurchase of common stock | $ (477) | |||||||
Excess tax benefits from share-based payment arrangements, net | 51 | |||||||
Balance (in shares) at Sep. 30, 2016 | 85 | [1] | 27 | |||||
Balance at Sep. 30, 2016 | $ 1,539 | $ 1 | $ 2,270 | $ 1,501 | $ (2,037) | $ (196) | ||
[1] | Common stock outstanding decreased by approximately 6 million net shares during the year ended December 31, 2015. | |||||||
[2] | The Accumulated Other Comprehensive Loss balance primarily reflects foreign currency translation adjustments. |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) shares in Millions | 12 Months Ended |
Dec. 31, 2015shares | |
Statement of Stockholders' Equity [Abstract] | |
Increase (decrease) in common stock outstanding (in shares) | (6) |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows From Operating Activities: | ||
Net income | $ 413 | $ 416 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 927 | 926 |
Amortization of deferred financing costs and original issue discounts | 7 | 8 |
Gain on sales of rental equipment | (146) | (164) |
Gain on sales of non-rental equipment | (3) | (6) |
Stock compensation expense, net | 33 | 37 |
Merger related costs | 0 | (26) |
Restructuring charge | 8 | 1 |
Loss on repurchase/redemption of debt securities and amendment of ABL facility | 36 | 123 |
Excess tax benefits from share-based payment arrangements | (53) | (57) |
Increase in deferred taxes | 90 | 94 |
Changes in operating assets and liabilities, net of amounts acquired: | ||
Decrease (increase) in accounts receivable | 7 | (72) |
Increase in inventory | (3) | 0 |
Decrease in prepaid expenses and other assets | 75 | 17 |
Increase in accounts payable | 137 | 195 |
Increase in accrued expenses and other liabilities | 102 | 65 |
Net cash provided by operating activities | 1,630 | 1,557 |
Cash Flows From Investing Activities: | ||
Purchases of other companies, net of cash acquired | (28) | (86) |
Net cash used in investing activities | (865) | (1,192) |
Cash Flows From Financing Activities: | ||
Proceeds from debt | 5,812 | 7,453 |
Payments of debt | (6,021) | (7,093) |
Payment of contingent consideration | 0 | (52) |
Proceeds from the exercise of common stock options | 0 | 1 |
Common stock repurchased | (488) | (667) |
Payments of financing costs | (12) | (27) |
Excess tax benefits from share-based payment arrangements | 53 | 57 |
Net cash used in financing activities | (656) | (328) |
Effect of foreign exchange rates | 9 | (24) |
Net increase in cash and cash equivalents | 118 | 13 |
Cash and cash equivalents at beginning of period | 179 | 158 |
Cash and cash equivalents at end of period | 297 | 171 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net | 14 | 55 |
Cash paid for interest | 294 | 304 |
Rental equipment | ||
Cash Flows From Investing Activities: | ||
Purchases of equipment | (1,145) | (1,425) |
Proceeds from sales of equipment | 361 | 381 |
Nonrental equipment | ||
Cash Flows From Investing Activities: | ||
Purchases of equipment | (65) | (76) |
Proceeds from sales of equipment | $ 12 | $ 14 |
Organization, Description of Bu
Organization, Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Description of Business and Basis of Presentation | Organization, Description of Business and Basis of Presentation United Rentals, Inc. (“Holdings,” “URI” or the “Company”) is principally a holding company and conducts its operations primarily through its wholly owned subsidiary, United Rentals (North America), Inc. (“URNA”), and subsidiaries of URNA. Holdings’ primary asset is its sole ownership of all issued and outstanding shares of common stock of URNA. URNA’s various credit agreements and debt instruments place restrictions on its ability to transfer funds to its shareholder. We rent equipment to a diverse customer base that includes construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities in the United States and Canada. In addition to renting equipment, we sell new and used rental equipment, as well as related contractor supplies, parts and service. We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with the accounting policies described in our annual report on Form 10-K for the year ended December 31, 2015 (the “ 2015 Form 10-K”) and the interim reporting requirements of Form 10-Q. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the 2015 Form 10-K. In our opinion, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of financial condition, operating results and cash flows for the interim periods presented have been made. Interim results of operations are not necessarily indicative of the results of the full year. New Accounting Pronouncements Revenue from Contracts with Customers . In May 2014, and in subsequent updates, the Financial Accounting Standards Board (“FASB”) issued guidance to clarify the principles for recognizing revenue. This guidance includes the required steps to achieve the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has agreed to a one-year deferral of the original effective date of this guidance and as a result it will be effective for fiscal years and interim periods beginning after December 15, 2017. The FASB's update allows entities to apply the new guidance as of the original effective date (for fiscal years and interim periods beginning after December 15, 2016). We expect to adopt this guidance when effective, and the impact on our financial statements is not currently estimable. Leases . In March 2016, the FASB issued guidance (“Topic 842”) to increase transparency and comparability among organizations by requiring i) recognition of lease assets and lease liabilities on the balance sheet and ii) disclosure of key information about leasing arrangements. The accounting applied by lessors under Topic 842 is largely unchanged from previous GAAP. Some changes to the lessor accounting guidance were made to align both of the following: i) the lessor accounting guidance with certain changes made to the lessee accounting guidance and ii) key aspects of the lessor accounting model with revenue recognition guidance. Topic 842 will be effective for fiscal years and interim periods beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for adoption for all leases that exist at or commence after the date of initial application with an option to use certain practical expedients. We are currently assessing whether we will early adopt, and the impact on our financial statements is not currently estimable. Improvements to Employee Share-Based Payment Accounting . In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2016, and early adoption is permitted. Different components of the guidance require prospective, retrospective and/or modified retrospective adoption. We expect to adopt this guidance when effective, and do not expect the guidance to have a significant impact on our financial statements. Statement of Cash Flows. In August 2016, the FASB issued guidance to reduce the diversity in the presentation of certain cash receipts and cash payments presented and classified in the statement of cash flows. The guidance addresses the following eight specific cash flow issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transitions and (8) separately identifiable cash flows and application of predominance principle. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2017, and early adoption is permitted. The guidance requires retrospective adoption. We are currently assessing whether we will early adopt, and the impact on our financial statements is not currently estimable. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments are i) general rentals and ii) trench, power and pump. The general rentals segment includes the rental of i) general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, ii) aerial work platforms, such as boom lifts and scissor lifts and iii) general tools and light equipment, such as pressure washers, water pumps and power tools. The general rentals segment reflects the aggregation of nine geographic regions—Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Midwest, Northeast, Pacific West, South-Central, South, Southeast and Western Canada—and operates throughout the United States and Canada. The trench, power and pump segment includes the rental of specialty construction products such as i) trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, ii) power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment and iii) pumps primarily used by municipalities, industrial plants, and mining, construction, and agribusiness customers. The trench, power and pump segment is comprised of the following regions, each of which primarily rents the corresponding equipment type described above: (i) the Trench Safety region, (ii) the Power and HVAC region, and (iii) the Pump Solutions region. The trench, power and pump segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment operates throughout the United States and in Canada. These segments align our external segment reporting with how management evaluates and allocates resources. We evaluate segment performance based on segment equipment rentals gross profit. The following tables set forth financial information by segment. General rentals Trench, power and pump Total Three Months Ended September 30, 2016 Equipment rentals $ 1,097 $ 225 $ 1,322 Sales of rental equipment 103 9 112 Sales of new equipment 27 3 30 Contractor supplies sales 16 3 19 Service and other revenues 23 2 25 Total revenue 1,266 242 1,508 Depreciation and amortization expense 266 45 311 Equipment rentals gross profit 469 117 586 Three Months Ended September 30, 2015 Equipment rentals $ 1,120 $ 206 $ 1,326 Sales of rental equipment 132 9 141 Sales of new equipment 33 5 38 Contractor supplies sales 18 3 21 Service and other revenues 23 1 24 Total revenue 1,326 224 1,550 Depreciation and amortization expense 272 43 315 Equipment rentals gross profit 500 107 607 Nine Months Ended September 30, 2016 Equipment rentals $ 3,067 $ 576 $ 3,643 Sales of rental equipment 334 27 361 Sales of new equipment 84 12 96 Contractor supplies sales 49 11 60 Service and other revenues 71 8 79 Total revenue 3,605 634 4,239 Depreciation and amortization expense 791 136 927 Equipment rentals gross profit 1,243 274 1,517 Capital expenditures 1,086 124 1,210 Nine Months Ended September 30, 2015 Equipment rentals $ 3,144 $ 527 $ 3,671 Sales of rental equipment 356 25 381 Sales of new equipment 94 16 110 Contractor supplies sales 51 9 60 Service and other revenues 65 7 72 Total revenue 3,710 584 4,294 Depreciation and amortization expense 798 128 926 Equipment rentals gross profit 1,339 249 1,588 Capital expenditures 1,325 176 1,501 September 30, December 31, Total reportable segment assets General rentals $ 10,731 $ 10,561 Trench, power and pump 1,544 1,522 Total assets $ 12,275 $ 12,083 Equipment rentals gross profit is the primary measure management reviews to make operating decisions and assess segment performance. The following is a reconciliation of equipment rentals gross profit to income before provision for income taxes: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Total equipment rentals gross profit $ 586 $ 607 $ 1,517 $ 1,588 Gross profit from other lines of business 70 83 229 244 Selling, general and administrative expenses (179 ) (178 ) (533 ) (534 ) Merger related costs — — — 26 Restructuring charge (4 ) — (8 ) (1 ) Non-rental depreciation and amortization (61 ) (66 ) (192 ) (202 ) Interest expense, net (110 ) (107 ) (349 ) (460 ) Other income, net 1 1 3 10 Income before provision for income taxes $ 303 $ 340 $ 667 $ 671 |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Closed Restructuring Programs We have two closed restructuring programs. The first was initiated in 2008 in recognition of a challenging economic environment and was completed in 2011. The second closed restructuring program was initiated following the April 30, 2012 acquisition of RSC Holdings Inc. ("RSC"), and was completed in 2013. The restructuring charges under the closed restructuring programs include severance costs associated with headcount reductions, as well as branch closure charges which principally relate to continuing lease obligations at vacant facilities. 2015-2016 Cost Savings Restructuring Program In the fourth quarter of 2015, we initiated a restructuring program in response to challenges in our operating environment. In particular, during 2015, we experienced volume and pricing pressure in our general rental business and our Pump Solutions region associated with upstream oil and gas customers. Additionally, our Lean initiatives did not fully generate the anticipated cost savings due to lower than expected growth. Though we expect solid industry growth in the foreseeable future, the restructuring program was initiated in an effort to reduce costs in an environment with continuing pressures on volume and pricing. We expect to complete the restructuring program in 2016, and expect the total costs incurred under the program to be approximately $20 , including $11 recognized through September 30, 2016 . The table below provides certain information concerning our restructuring charges for the nine months ended September 30, 2016 : Reserve Balance at Charged to Payments Reserve Balance at Description December 31, 2015 September 30, 2016 Closed Restructuring Programs Branch closure charges $ 13 $ 1 $ (5 ) $ 9 Severance costs — — — — Total $ 13 $ 1 $ (5 ) $ 9 2015-2016 Cost Savings Restructuring Program Branch closure charges $ — $ 3 $ — $ 3 Severance costs 3 4 (6 ) 1 Total $ 3 $ 7 $ (6 ) $ 4 Total Branch closure charges $ 13 $ 4 $ (5 ) $ 12 Severance costs 3 4 (6 ) 1 Total $ 16 $ 8 $ (11 ) $ 13 _________________ (1) Reflected in our condensed consolidated statements of income as “Restructuring charge.” These charges are not allocated to our reportable segments. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives We recognize all derivative instruments as either assets or liabilities at fair value, and recognize changes in the fair value of the derivative instruments based on the designation of the derivative. We are exposed to certain risks relating to our ongoing business operations. During the nine months ended September 30, 2016 and 2015 , the risks we managed using derivative instruments were diesel price risk and foreign currency exchange rate risk. At September 30, 2016 , we had outstanding fixed price swap contracts on diesel purchases which were entered into to mitigate the price risk associated with forecasted purchases of diesel. During the nine months ended September 30, 2016 , we entered into forward contracts to purchase Canadian dollars to mitigate the foreign currency exchange rate risk associated with certain Canadian dollar denominated intercompany loans. There were no outstanding forward contracts to purchase Canadian dollars at September 30, 2016 . Fixed Price Diesel Swaps The fixed price swap contracts on diesel purchases that were outstanding at September 30, 2016 were designated and qualify as cash flow hedges and the effective portion of the gain or loss on these contracts is reported as a component of accumulated other comprehensive income and is reclassified into earnings in the period during which the hedged transaction affects earnings (i.e., when the hedged gallons of diesel are used). The remaining gain or loss on the fixed price swap contracts in excess of the cumulative change in the present value of future cash flows of the hedged item, if any (i.e., the ineffective portion), is recognized in our condensed consolidated statements of income during the current period. As of September 30, 2016 , we had outstanding fixed price swap contracts covering 9.8 million gallons of diesel which will be purchased throughout 2016 , 2017 and 2018. Foreign Currency Forward Contracts The forward contracts to purchase Canadian dollars, which were all settled as of September 30, 2016 , represented derivative instruments not designated as hedging instruments and gains or losses due to changes in the fair value of the forward contracts were recognized in our condensed consolidated statements of income during the period in which the changes in fair value occurred. During the three and nine months ended September 30, 2016 , forward contracts were used to purchase $ 301 and $ 552 Canadian dollars, respectively, representing the total amount due at maturity for certain Canadian dollar denominated intercompany loans that were settled during the three and nine months ended September 30, 2016 . Upon maturity, the proceeds from the forward contracts were used to pay down the Canadian dollar denominated intercompany loans. Financial Statement Presentation As of September 30, 2016 and December 31, 2015 , immaterial amounts ( $6 or less) were reflected in prepaid expenses and other assets, accrued expenses and other liabilities, and accumulated other comprehensive income in our condensed consolidated balance sheets associated with the outstanding fixed price swap contracts that were designated and qualify as cash flow hedges. The effect of our derivative instruments on our condensed consolidated statements of income for the three and nine months ended September 30, 2016 and 2015 was as follows: Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Location of income (expense) recognized on derivative/hedged item Amount of income (expense) recognized on derivative Amount of income (expense) recognized on hedged item Amount of income (expense) recognized on derivative Amount of income (expense) recognized on hedged item Derivatives designated as hedging instruments: Fixed price diesel swaps Other income (expense), net (1) $ * $ * Cost of equipment rentals, excluding depreciation (2), (3) (1 ) $ (6 ) (2 ) $ (7 ) Derivatives not designated as hedging instruments: Foreign currency forward contracts (4) Other income (expense), net (4 ) 4 (5 ) 5 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Location of income (expense) recognized on derivative/hedged item Amount of income (expense) recognized on derivative Amount of income (expense) recognized on hedged item Amount of income (expense) recognized on derivative Amount of income (expense) recognized on hedged item Derivatives designated as hedging instruments: Fixed price diesel swaps Other income (expense), net (1) $ * $ * Cost of equipment rentals, excluding depreciation (2), (3) (5 ) $ (17 ) (5 ) $ (23 ) Derivatives not designated as hedging instruments: Foreign currency forward contracts (4) Other income (expense), net (1 ) 1 (5 ) 5 * Amounts are insignificant (less than $1 ). (1) Represents the ineffective portion of the fixed price diesel swaps. (2) Amounts recognized on derivative represent the effective portion of the fixed price diesel swaps. (3) Amounts recognized on hedged item reflect the use of 2.7 million and 2.8 million gallons of diesel covered by the fixed price swaps during the three months ended September 30, 2016 and 2015 , respectively, and the use of 7.7 million and 8.2 million gallons and of diesel covered by the fixed price swaps during the nine months ended September 30, 2016 and 2015 , respectively. These amounts are reflected, net of cash received from, or paid to, the counterparties to the fixed price swaps, in operating cash flows in our condensed consolidated statement of cash flows. (4) Insignificant amounts were reflected in our condensed consolidated statement of cash flows associated with the forward contracts to purchase Canadian dollars, as the cash impact of the gains/losses recognized on the derivatives were offset by the gains/losses recognized on the hedged items. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We account for certain assets and liabilities at fair value. We categorize each of our fair value measurements in one of the following three levels based on the lowest level input that is significant to the fair value measurement in its entirety: Level 1- Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2- Observable inputs other than quoted prices in active markets for identical assets or liabilities include: a) quoted prices for similar assets or liabilities in active markets; b) quoted prices for identical or similar assets or liabilities in inactive markets; c) inputs other than quoted prices that are observable for the asset or liability; d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3- Inputs to the valuation methodology are unobservable (i.e., supported by little or no market activity) and significant to the fair value measure. Assets and Liabilities Measured at Fair Value As of September 30, 2016 and December 31, 2015 , our only assets and liabilities measured at fair value were our fixed price diesel swaps contracts, which are Level 2 derivatives measured at fair value on a recurring basis. As of September 30, 2016 and December 31, 2015 , immaterial amounts ( $6 or less) were reflected in prepaid expenses and other assets, and accrued expenses and other liabilities in our condensed consolidated balance sheets, reflecting the fair values of the fixed price diesel swaps contracts. As discussed in note 4 to the condensed consolidated financial statements, we entered into the fixed price swap contracts on diesel purchases to mitigate the price risk associated with forecasted purchases of diesel. Fair value is determined based on observable market data. As of September 30, 2016 , we have fixed price swap contracts that mature throughout 2016 , 2017 and 2018 covering 9.8 million gallons of diesel which we will buy at the average contract price of $2.60 per gallon, while the average forward price for the hedged gallons was $2.56 per gallon as of September 30, 2016 . Fair Value of Financial Instruments The carrying amounts reported in our condensed consolidated balance sheets for accounts receivable, accounts payable and accrued expenses and other liabilities approximate fair value due to the immediate to short-term maturity of these financial instruments. The fair values of our senior secured asset-based revolving credit facility (“ABL facility”), accounts receivable securitization facility and capital leases approximated their book values as of September 30, 2016 and December 31, 2015 . The estimated fair values of our financial instruments, all of which are categorized in Level 1 of the fair value hierarchy, as of September 30, 2016 and December 31, 2015 have been calculated based upon available market information, and were as follows: September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Senior notes $ 5,605 $ 5,855 $ 5,916 $ 6,030 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt, net of unamortized original issue discounts or premiums, and unamortized debt issuance costs, consists of the following: September 30, 2016 December 31, 2015 Accounts Receivable Securitization Facility (1) $ 579 $ 571 $2.5 billion ABL Facility (2) 1,737 1,579 7 3 / 8 percent Senior Notes (3) — 740 8 1 / 4 percent Senior Notes (3) — 315 7 5 / 8 percent Senior Notes 1,308 1,306 6 1 / 8 percent Senior Notes 936 937 4 5 / 8 percent Senior Secured Notes 990 989 5 3 / 4 percent Senior Notes 839 838 5 1 / 2 percent Senior Notes 792 791 5 7 / 8 percent Senior Notes (4) 740 — Capital leases 81 96 Total debt 8,002 8,162 Less short-term portion (5) (609 ) (607 ) Total long-term debt $ 7,393 $ 7,555 ___________________ (1) In August 2016, the accounts receivable securitization facility was amended, primarily to extend the maturity date. The amended facility expires on August 29, 2017 and may be further extended on a 364 -day basis by mutual agreement with the purchasers under the accounts receivable securitization facility. At September 30, 2016 , $44 was available under our accounts receivable securitization facility. The interest rate applicable to the accounts receivable securitization facility was 1.4 percent at September 30, 2016 . During the nine months ended September 30, 2016 , the monthly average amount outstanding under the accounts receivable securitization facility was $539 , and the weighted-average interest rate thereon was 1.2 percent . The maximum month-end amount outstanding under the accounts receivable securitization facility during the nine months ended September 30, 2016 was $580 . Borrowings under the accounts receivable securitization facility are permitted only to the extent that the face amount of the receivables in the collateral pool, net of applicable reserves, exceeds the outstanding loans. As of September 30, 2016 , there were $ 623 of receivables, net of applicable reserves, in the collateral pool. (2) At September 30, 2016 , $716 was available under our ABL facility, net of $37 of letters of credit. The interest rate applicable to the ABL facility was 2.0 percent at September 30, 2016 . During the nine months ended September 30, 2016 , the monthly average amount outstanding under the ABL facility was $1.4 billion, and the weighted-average interest rate thereon was 2.1 percent . The maximum month-end amount outstanding under the ABL facility during the nine months ended September 30, 2016 was $1.7 billion . In June 2016, the ABL facility was amended, primarily to extend the maturity date. All amounts borrowed under the ABL facility must be repaid by June 2021. (3) In May 2016, we redeemed all of our 8 1 / 4 percent Senior Notes and $ 550 principal amount of our 7 3 / 8 percent Senior Notes. Upon redemption, we recognized an aggregate loss of $ 25 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the notes. In August 2016, we redeemed the remaining $ 200 principal amount of our 7 3 / 8 percent Senior Notes using borrowings available under our ABL facility. We recognized a loss representing the difference between the net carrying amount and the total purchase price of the notes of $ 10 in interest expense, net upon redemption. (4) In May 2016, URNA issued $ 750 aggregate principal amount of 5 7 / 8 percent Senior Notes (the “5 7 / 8 percent Notes”) which are due September 15, 2026. The net proceeds from the issuance were approximately $ 741 (after deducting offering expenses). The 5 7 / 8 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 5 7 / 8 percent Notes may be redeemed on or after September 15, 2021 , at specified redemption prices that range from 102.938 percent in 2021, to 100 percent in 2024 and thereafter, plus accrued and unpaid interest, if any. The indenture governing the 5 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) additional indebtedness; (iii) mergers, consolidations and acquisitions; (iv) sales, transfers and other dispositions of assets; (v) loans and other investments; (vi) dividends and other distributions, stock repurchases and redemptions and other restricted payments; (vii) restrictions affecting subsidiaries; (viii) transactions with affiliates; and (ix) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 5 7 / 8 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. (5) As of September 30, 2016 , our short-term debt primarily reflects $ 579 of borrowings under our accounts receivable securitization facility. Loan Covenants and Compliance As of September 30, 2016 , we were in compliance with the covenants and other provisions of the ABL facility, the accounts receivable securitization facility and the senior notes. Any failure to be in compliance with any material provision or covenant of these agreements could have a material adverse effect on our liquidity and operations. The only financial covenant that currently exists under the ABL facility is the fixed charge coverage ratio. Subject to certain limited exceptions specified in the ABL facility, the fixed charge coverage ratio covenant under the ABL facility will only apply in the future if specified availability under the ABL facility falls below 10 percent of the maximum revolver amount under the ABL facility. When certain conditions are met, cash and cash equivalents and borrowing base collateral in excess of the ABL facility size may be included when calculating specified availability under the ABL facility. As of September 30, 2016 , specified availability under the ABL facility exceeded the required threshold and, as a result, this maintenance covenant was inapplicable. Under our accounts receivable securitization facility, we are required, among other things, to maintain certain financial tests relating to: (i) the default ratio, (ii) the delinquency ratio, (iii) the dilution ratio and (iv) days sales outstanding. The accounts receivable securitization facility also requires us to comply with the fixed charge coverage ratio under the ABL facility, to the extent the ratio is applicable under the ABL facility. |
Legal and Regulatory Matters
Legal and Regulatory Matters | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal and Regulatory Matters | Legal and Regulatory Matters We are subject to a number of claims and proceedings that generally arise in the ordinary course of our business. These matters include, but are not limited to, general liability claims (including personal injury, property and auto claims), indemnification and guarantee obligations, employee injuries and employment-related claims, self-insurance obligations, contract and real estate matters, and other general business litigation. Based on advice of counsel and available information, including current status or stage of proceeding, and taking into account accruals for matters where we have established them, we currently believe that any liabilities ultimately resulting from such claims and proceedings will not, individually or in the aggregate, have a material adverse effect on our consolidated financial condition, results of operations or cash flows. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (shares in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Net income available to common stockholders $ 187 $ 215 413 416 Denominator: Denominator for basic earnings per share—weighted-average common shares 85,945 94,213 88,175 95,992 Effect of dilutive securities: Employee stock options 278 291 281 311 4 percent Convertible Senior Notes — 574 — 786 Restricted stock units 222 113 168 196 Denominator for diluted earnings per share—adjusted weighted-average common shares 86,445 95,191 88,624 97,285 Basic earnings per share $ 2.18 $ 2.28 $ 4.68 $ 4.33 Diluted earnings per share $ 2.16 $ 2.25 $ 4.66 $ 4.27 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information of Guarantor Subsidiaries | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information of Guarantor Subsidiaries | Condensed Consolidating Financial Information of Guarantor Subsidiaries URNA is 100 percent owned by Holdings (“Parent”) and, as of September 30, 2016 and/or December 31, 2015 , had outstanding (i) certain indebtedness that is guaranteed by both Parent and, with the exception of its U.S. special purpose vehicle which holds receivable assets relating to the Company’s accounts receivable securitization facility (the “SPV”), all of URNA’s U.S. subsidiaries (the “guarantor subsidiaries”) and (ii) certain indebtedness that was guaranteed only by the guarantor subsidiaries (specifically, the 8 1 / 4 percent Senior Notes). As discussed in note 6 to the condensed consolidated financial statements, in May 2016, all of the 8 1 / 4 percent Senior Notes were redeemed. Other than the guarantee by certain Canadian subsidiaries of URNA's indebtedness under the ABL facility, none of URNA’s indebtedness is guaranteed by URNA's foreign subsidiaries or the SPV (together, the “non-guarantor subsidiaries”). The receivable assets owned by the SPV have been sold or contributed by URNA to the SPV and are not available to satisfy the obligations of URNA or Parent’s other subsidiaries. The guarantor subsidiaries are all 100 percent -owned and the guarantees are made on a joint and several basis. The guarantees are not full and unconditional because a guarantor subsidiary can be automatically released and relieved of its obligations under certain circumstances, including sale of the guarantor subsidiary, the sale of all or substantially all of the guarantor subsidiary's assets, the requirements for legal defeasance or covenant defeasance under the applicable indenture being met or designating the guarantor subsidiary as an unrestricted subsidiary for purposes of the applicable covenants. The guarantees are also subject to subordination provisions (to the same extent that the obligations of the issuer under the relevant notes are subordinated to other debt of the issuer) and to a standard limitation which provides that the maximum amount guaranteed by each guarantor will not exceed the maximum amount that can be guaranteed without making the guarantee void under fraudulent conveyance laws. Based on our understanding of Rule 3-10 of Regulation S-X ("Rule 3-10"), we believe that the guarantees of the guarantor subsidiaries comply with the conditions set forth in Rule 3-10 and therefore continue to utilize Rule 3-10 to present condensed consolidating financial information for Holdings, URNA, the guarantor subsidiaries and the non-guarantor subsidiaries. Separate consolidated financial statements of the guarantor subsidiaries have not been presented because management believes that such information would not be material to investors. However, condensed consolidating financial information is presented. URNA covenants in the ABL facility, accounts receivable securitization facility and the other agreements governing our debt impose operating and financial restrictions on URNA, Parent and the guarantor subsidiaries, including limitations on the ability to make share repurchases and dividend payments. As of September 30, 2016 , the amount available for distribution under the most restrictive of these covenants was $ 332 . The Company’s total available capacity for making share repurchases and dividend payments includes the intercompany receivable balance of Parent. As of September 30, 2016 , our total available capacity for making share repurchases and dividend payments, which includes URNA’s capacity to make restricted payments and the intercompany receivable balance of Parent, was $561 . The condensed consolidating financial information of Parent and its subsidiaries is as follows: CONDENSED CONSOLIDATING BALANCE SHEET September 30, 2016 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV ASSETS Cash and cash equivalents $ — $ 20 $ — $ 277 $ — $ — $ 297 Accounts receivable, net — 25 — 97 807 — 929 Intercompany receivable (payable) 229 (29 ) (190 ) (121 ) — 111 — Inventory — 65 — 7 — — 72 Prepaid expenses and other assets — 47 — 9 — — 56 Total current assets 229 128 (190 ) 269 807 111 1,354 Rental equipment, net — 5,929 — 498 — — 6,427 Property and equipment, net 38 329 23 45 — — 435 Investments in subsidiaries 1,293 1,033 990 — — (3,316 ) — Goodwill — 3,014 — 253 — — 3,267 Other intangible assets, net — 721 — 61 — — 782 Other long-term assets 3 7 — — — — 10 Total assets $ 1,563 $ 11,161 $ 823 $ 1,126 $ 807 $ (3,205 ) $ 12,275 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 1 $ 26 $ — $ 3 $ 579 $ — $ 609 Accounts payable — 378 — 31 — — 409 Accrued expenses and other liabilities — 368 14 19 1 — 402 Total current liabilities 1 772 14 53 580 — 1,420 Long-term debt 3 7,268 114 8 — — 7,393 Deferred taxes 20 1,768 — 75 — — 1,863 Other long-term liabilities — 60 — — — — 60 Total liabilities 24 9,868 128 136 580 — 10,736 Total stockholders’ equity (deficit) 1,539 1,293 695 990 227 (3,205 ) 1,539 Total liabilities and stockholders’ equity (deficit) $ 1,563 $ 11,161 $ 823 $ 1,126 $ 807 $ (3,205 ) $ 12,275 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV ASSETS Cash and cash equivalents $ — $ 18 $ — $ 161 $ — $ — $ 179 Accounts receivable, net — 41 — 104 785 — 930 Intercompany receivable (payable) 144 40 (176 ) (109 ) — 101 — Inventory — 62 — 7 — — 69 Prepaid expenses and other assets — 98 — 18 — — 116 Total current assets 144 259 (176 ) 181 785 101 1,294 Rental equipment, net — 5,657 — 529 — — 6,186 Property and equipment, net 45 334 20 46 — — 445 Investments in subsidiaries 1,307 958 924 — — (3,189 ) — Goodwill — 3,000 — 243 — — 3,243 Other intangible assets, net — 838 — 67 — — 905 Other long-term assets 3 7 — — — — 10 Total assets $ 1,499 $ 11,053 $ 768 $ 1,066 $ 785 $ (3,088 ) $ 12,083 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 1 $ 34 $ — $ — $ 572 $ — $ 607 Accounts payable — 237 — 34 — — 271 Accrued expenses and other liabilities — 314 14 27 — — 355 Total current liabilities 1 585 14 61 572 — 1,233 Long-term debt 4 7,430 110 11 — — 7,555 Deferred taxes 18 1,677 — 70 — — 1,765 Other long-term liabilities — 54 — — — — 54 Total liabilities 23 9,746 124 142 572 — 10,607 Total stockholders’ equity (deficit) 1,476 1,307 644 924 213 (3,088 ) 1,476 Total liabilities and stockholders’ equity (deficit) $ 1,499 $ 11,053 $ 768 $ 1,066 $ 785 $ (3,088 ) $ 12,083 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2016 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 1,208 $ — $ 114 $ — $ — $ 1,322 Sales of rental equipment — 99 — 13 — — 112 Sales of new equipment — 28 — 2 — — 30 Contractor supplies sales — 17 — 2 — — 19 Service and other revenues — 22 — 3 — — 25 Total revenues — 1,374 — 134 — — 1,508 Cost of revenues: Cost of equipment rentals, excluding depreciation — 435 — 51 — — 486 Depreciation of rental equipment — 227 — 23 — — 250 Cost of rental equipment sales — 61 — 7 — — 68 Cost of new equipment sales — 23 — 2 — — 25 Cost of contractor supplies sales — 11 — 2 — — 13 Cost of service and other revenues — 11 — (1 ) — — 10 Total cost of revenues — 768 — 84 — — 852 Gross profit — 606 — 50 — — 656 Selling, general and administrative expenses 2 151 — 18 8 — 179 Restructuring charge — 4 — — — — 4 Non-rental depreciation and amortization 3 52 — 6 — — 61 Operating (loss) income (5 ) 399 — 26 (8 ) — 412 Interest (income) expense, net (1 ) 109 1 1 2 (2 ) 110 Other (income) expense, net (123 ) 136 — 9 (23 ) — (1 ) Income (loss) before provision for income taxes 119 154 (1 ) 16 13 2 303 Provision for income taxes 42 64 — 5 5 — 116 Income (loss) before equity in net earnings (loss) of subsidiaries 77 90 (1 ) 11 8 2 187 Equity in net earnings (loss) of subsidiaries 110 20 11 — — (141 ) — Net income (loss) 187 110 10 11 8 (139 ) 187 Other comprehensive (loss) income (9 ) (9 ) (9 ) (7 ) — 25 (9 ) Comprehensive income (loss) $ 178 $ 101 $ 1 $ 4 $ 8 $ (114 ) $ 178 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2015 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 1,200 $ — $ 126 $ — $ — $ 1,326 Sales of rental equipment — 124 — 17 — — 141 Sales of new equipment — 32 — 6 — — 38 Contractor supplies sales — 18 — 3 — — 21 Service and other revenues — 20 — 4 — — 24 Total revenues — 1,394 — 156 — — 1,550 Cost of revenues: Cost of equipment rentals, excluding depreciation — 421 — 49 — — 470 Depreciation of rental equipment — 225 — 24 — — 249 Cost of rental equipment sales — 75 — 10 — — 85 Cost of new equipment sales — 26 — 5 — — 31 Cost of contractor supplies sales — 12 — 3 — — 15 Cost of service and other revenues — 10 — — — — 10 Total cost of revenues — 769 — 91 — — 860 Gross profit — 625 — 65 — — 690 Selling, general and administrative expenses (10 ) 160 2 21 5 — 178 Non-rental depreciation and amortization 4 55 1 6 — — 66 Operating income (loss) 6 410 (3 ) 38 (5 ) — 446 Interest (income) expense, net (1 ) 106 1 — 2 (1 ) 107 Other (income) expense, net (1) (275 ) 273 (2 ) 30 (27 ) — (1 ) Income (loss) before provision (benefit) for income taxes 282 31 (2 ) 8 20 1 340 Provision (benefit) for income taxes 118 (2 ) — 2 7 — 125 Income (loss) before equity in net earnings (loss) of subsidiaries 164 33 (2 ) 6 13 1 215 Equity in net earnings (loss) of subsidiaries 51 18 6 — — (75 ) — Net income (loss) 215 51 4 6 13 (74 ) 215 Other comprehensive (loss) income (72 ) (72 ) (70 ) (56 ) — 198 (72 ) Comprehensive income (loss) $ 143 $ (21 ) $ (66 ) $ (50 ) $ 13 $ 124 $ 143 (1) Other (income) expense, net includes an adjustment to the amount of royalties Holdings receives from URNA and its subsidiaries as discussed below (see Item 2- Management’s Discussion and Analysis of Financial Condition and Results of Operations- Liquidity and Capital Resources- Relationship between Holdings and URNA). CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2016 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 3,335 $ — $ 308 $ — $ — $ 3,643 Sales of rental equipment — 320 — 41 — — 361 Sales of new equipment — 86 — 10 — — 96 Contractor supplies sales — 52 — 8 — — 60 Service and other revenues — 69 — 10 — — 79 Total revenues — 3,862 — 377 — — 4,239 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,246 — 145 — — 1,391 Depreciation of rental equipment — 667 — 68 — — 735 Cost of rental equipment sales — 193 — 22 — — 215 Cost of new equipment sales — 71 — 8 — — 79 Cost of contractor supplies sales — 35 — 6 — — 41 Cost of service and other revenues — 30 — 2 — — 32 Total cost of revenues — 2,242 — 251 — — 2,493 Gross profit — 1,620 — 126 — — 1,746 Selling, general and administrative expenses 10 450 — 55 18 — 533 Merger related costs — — — — — — — Restructuring charge — 7 — 1 — — 8 Non-rental depreciation and amortization 11 163 — 18 — — 192 Operating (loss) income (21 ) 1,000 — 52 (18 ) — 1,013 Interest (income) expense, net (4 ) 348 2 2 5 (4 ) 349 Other (income) expense, net (345 ) 382 — 29 (69 ) — (3 ) Income (loss) before provision for income taxes 328 270 (2 ) 21 46 4 667 Provision for income taxes 121 109 — 6 18 — 254 Income (loss) before equity in net earnings (loss) of subsidiaries 207 161 (2 ) 15 28 4 413 Equity in net earnings (loss) of subsidiaries 206 45 15 — — (266 ) — Net income (loss) 413 206 13 15 28 (262 ) 413 Other comprehensive income (loss) 54 54 51 41 — (146 ) 54 Comprehensive income (loss) $ 467 $ 260 $ 64 $ 56 $ 28 $ (408 ) $ 467 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2015 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 3,298 $ — $ 373 $ — $ — $ 3,671 Sales of rental equipment — 336 — 45 — — 381 Sales of new equipment — 95 — 15 — — 110 Contractor supplies sales — 52 — 8 — — 60 Service and other revenues — 61 — 11 — — 72 Total revenues — 3,842 — 452 — — 4,294 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,194 — 165 — — 1,359 Depreciation of rental equipment — 652 — 72 — — 724 Cost of rental equipment sales — 192 — 25 — — 217 Cost of new equipment sales — 79 — 12 — — 91 Cost of contractor supplies sales — 36 — 6 — — 42 Cost of service and other revenues — 25 — 4 — — 29 Total cost of revenues — 2,178 — 284 — — 2,462 Gross profit — 1,664 — 168 — — 1,832 Selling, general and administrative expenses (11 ) 464 2 59 20 — 534 Merger related costs — (26 ) — — — — (26 ) Restructuring charge — 1 — — — — 1 Non-rental depreciation and amortization 12 171 1 18 — — 202 Operating (loss) income (1 ) 1,054 (3 ) 91 (20 ) — 1,121 Interest (income) expense, net (2 ) 457 3 2 4 (4 ) 460 Other (income) expense, net (348 ) 380 (1 ) 33 (74 ) — (10 ) Income (loss) before provision for income taxes 349 217 (5 ) 56 50 4 671 Provision for income taxes 149 69 — 18 19 — 255 Income (loss) before equity in net earnings (loss) of subsidiaries 200 148 (5 ) 38 31 4 416 Equity in net earnings (loss) of subsidiaries 216 68 38 — — (322 ) — Net income (loss) 416 216 33 38 31 (318 ) 416 Other comprehensive (loss) income (144 ) (144 ) (144 ) (114 ) — 402 (144 ) Comprehensive income (loss) $ 272 $ 72 $ (111 ) $ (76 ) $ 31 $ 84 $ 272 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Nine Months Ended September 30, 2016 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Net cash provided by (used in) operating activities $ 4 $ 1,513 $ (2 ) $ 108 $ 7 $ — $ 1,630 Net cash (used in) provided by investing activities (4 ) (862 ) — 1 — — (865 ) Net cash (used in) provided by financing activities — (649 ) 2 (2 ) (7 ) — (656 ) Effect of foreign exchange rates — — — 9 — — 9 Net increase in cash and cash equivalents — 2 — 116 — — 118 Cash and cash equivalents at beginning of period — 18 — 161 — — 179 Cash and cash equivalents at end of period $ — $ 20 $ — $ 277 $ — $ — $ 297 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Nine Months Ended September 30, 2015 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Net cash provided by (used in) operating activities $ 9 $ 1,440 $ (2 ) $ 157 $ (47 ) $ — $ 1,557 Net cash used in investing activities (9 ) (1,062 ) — (121 ) — — (1,192 ) Net cash (used in) provided by financing activities — (370 ) 2 (7 ) 47 — (328 ) Effect of foreign exchange rates — — — (24 ) — — (24 ) Net increase in cash and cash equivalents — 8 — 5 — — 13 Cash and cash equivalents at beginning of period — 8 — 150 — — 158 Cash and cash equivalents at end of period $ — $ 16 $ — $ 155 $ — $ — $ 171 |
Organization, Description of 18
Organization, Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Revenue from Contracts with Customers . In May 2014, and in subsequent updates, the Financial Accounting Standards Board (“FASB”) issued guidance to clarify the principles for recognizing revenue. This guidance includes the required steps to achieve the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has agreed to a one-year deferral of the original effective date of this guidance and as a result it will be effective for fiscal years and interim periods beginning after December 15, 2017. The FASB's update allows entities to apply the new guidance as of the original effective date (for fiscal years and interim periods beginning after December 15, 2016). We expect to adopt this guidance when effective, and the impact on our financial statements is not currently estimable. Leases . In March 2016, the FASB issued guidance (“Topic 842”) to increase transparency and comparability among organizations by requiring i) recognition of lease assets and lease liabilities on the balance sheet and ii) disclosure of key information about leasing arrangements. The accounting applied by lessors under Topic 842 is largely unchanged from previous GAAP. Some changes to the lessor accounting guidance were made to align both of the following: i) the lessor accounting guidance with certain changes made to the lessee accounting guidance and ii) key aspects of the lessor accounting model with revenue recognition guidance. Topic 842 will be effective for fiscal years and interim periods beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for adoption for all leases that exist at or commence after the date of initial application with an option to use certain practical expedients. We are currently assessing whether we will early adopt, and the impact on our financial statements is not currently estimable. Improvements to Employee Share-Based Payment Accounting . In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2016, and early adoption is permitted. Different components of the guidance require prospective, retrospective and/or modified retrospective adoption. We expect to adopt this guidance when effective, and do not expect the guidance to have a significant impact on our financial statements. Statement of Cash Flows. In August 2016, the FASB issued guidance to reduce the diversity in the presentation of certain cash receipts and cash payments presented and classified in the statement of cash flows. The guidance addresses the following eight specific cash flow issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transitions and (8) separately identifiable cash flows and application of predominance principle. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2017, and early adoption is permitted. The guidance requires retrospective adoption. We are currently assessing whether we will early adopt, and the impact on our financial statements is not currently estimable. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Financial information by segment | The following tables set forth financial information by segment. General rentals Trench, power and pump Total Three Months Ended September 30, 2016 Equipment rentals $ 1,097 $ 225 $ 1,322 Sales of rental equipment 103 9 112 Sales of new equipment 27 3 30 Contractor supplies sales 16 3 19 Service and other revenues 23 2 25 Total revenue 1,266 242 1,508 Depreciation and amortization expense 266 45 311 Equipment rentals gross profit 469 117 586 Three Months Ended September 30, 2015 Equipment rentals $ 1,120 $ 206 $ 1,326 Sales of rental equipment 132 9 141 Sales of new equipment 33 5 38 Contractor supplies sales 18 3 21 Service and other revenues 23 1 24 Total revenue 1,326 224 1,550 Depreciation and amortization expense 272 43 315 Equipment rentals gross profit 500 107 607 Nine Months Ended September 30, 2016 Equipment rentals $ 3,067 $ 576 $ 3,643 Sales of rental equipment 334 27 361 Sales of new equipment 84 12 96 Contractor supplies sales 49 11 60 Service and other revenues 71 8 79 Total revenue 3,605 634 4,239 Depreciation and amortization expense 791 136 927 Equipment rentals gross profit 1,243 274 1,517 Capital expenditures 1,086 124 1,210 Nine Months Ended September 30, 2015 Equipment rentals $ 3,144 $ 527 $ 3,671 Sales of rental equipment 356 25 381 Sales of new equipment 94 16 110 Contractor supplies sales 51 9 60 Service and other revenues 65 7 72 Total revenue 3,710 584 4,294 Depreciation and amortization expense 798 128 926 Equipment rentals gross profit 1,339 249 1,588 Capital expenditures 1,325 176 1,501 September 30, December 31, Total reportable segment assets General rentals $ 10,731 $ 10,561 Trench, power and pump 1,544 1,522 Total assets $ 12,275 $ 12,083 |
Reconciliation to equipment rentals gross profit | The following is a reconciliation of equipment rentals gross profit to income before provision for income taxes: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Total equipment rentals gross profit $ 586 $ 607 $ 1,517 $ 1,588 Gross profit from other lines of business 70 83 229 244 Selling, general and administrative expenses (179 ) (178 ) (533 ) (534 ) Merger related costs — — — 26 Restructuring charge (4 ) — (8 ) (1 ) Non-rental depreciation and amortization (61 ) (66 ) (192 ) (202 ) Interest expense, net (110 ) (107 ) (349 ) (460 ) Other income, net 1 1 3 10 Income before provision for income taxes $ 303 $ 340 $ 667 $ 671 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring reserve by type of cost | The table below provides certain information concerning our restructuring charges for the nine months ended September 30, 2016 : Reserve Balance at Charged to Payments Reserve Balance at Description December 31, 2015 September 30, 2016 Closed Restructuring Programs Branch closure charges $ 13 $ 1 $ (5 ) $ 9 Severance costs — — — — Total $ 13 $ 1 $ (5 ) $ 9 2015-2016 Cost Savings Restructuring Program Branch closure charges $ — $ 3 $ — $ 3 Severance costs 3 4 (6 ) 1 Total $ 3 $ 7 $ (6 ) $ 4 Total Branch closure charges $ 13 $ 4 $ (5 ) $ 12 Severance costs 3 4 (6 ) 1 Total $ 16 $ 8 $ (11 ) $ 13 _________________ (1) Reflected in our condensed consolidated statements of income as “Restructuring charge.” These charges are not allocated to our reportable segments. |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of derivatives on consolidated statements of income | The effect of our derivative instruments on our condensed consolidated statements of income for the three and nine months ended September 30, 2016 and 2015 was as follows: Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Location of income (expense) recognized on derivative/hedged item Amount of income (expense) recognized on derivative Amount of income (expense) recognized on hedged item Amount of income (expense) recognized on derivative Amount of income (expense) recognized on hedged item Derivatives designated as hedging instruments: Fixed price diesel swaps Other income (expense), net (1) $ * $ * Cost of equipment rentals, excluding depreciation (2), (3) (1 ) $ (6 ) (2 ) $ (7 ) Derivatives not designated as hedging instruments: Foreign currency forward contracts (4) Other income (expense), net (4 ) 4 (5 ) 5 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Location of income (expense) recognized on derivative/hedged item Amount of income (expense) recognized on derivative Amount of income (expense) recognized on hedged item Amount of income (expense) recognized on derivative Amount of income (expense) recognized on hedged item Derivatives designated as hedging instruments: Fixed price diesel swaps Other income (expense), net (1) $ * $ * Cost of equipment rentals, excluding depreciation (2), (3) (5 ) $ (17 ) (5 ) $ (23 ) Derivatives not designated as hedging instruments: Foreign currency forward contracts (4) Other income (expense), net (1 ) 1 (5 ) 5 * Amounts are insignificant (less than $1 ). (1) Represents the ineffective portion of the fixed price diesel swaps. (2) Amounts recognized on derivative represent the effective portion of the fixed price diesel swaps. (3) Amounts recognized on hedged item reflect the use of 2.7 million and 2.8 million gallons of diesel covered by the fixed price swaps during the three months ended September 30, 2016 and 2015 , respectively, and the use of 7.7 million and 8.2 million gallons and of diesel covered by the fixed price swaps during the nine months ended September 30, 2016 and 2015 , respectively. These amounts are reflected, net of cash received from, or paid to, the counterparties to the fixed price swaps, in operating cash flows in our condensed consolidated statement of cash flows. (4) Insignificant amounts were reflected in our condensed consolidated statement of cash flows associated with the forward contracts to purchase Canadian dollars, as the cash impact of the gains/losses recognized on the derivatives were offset by the gains/losses recognized on the hedged items. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | The estimated fair values of our financial instruments, all of which are categorized in Level 1 of the fair value hierarchy, as of September 30, 2016 and December 31, 2015 have been calculated based upon available market information, and were as follows: September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Senior notes $ 5,605 $ 5,855 $ 5,916 $ 6,030 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | Debt, net of unamortized original issue discounts or premiums, and unamortized debt issuance costs, consists of the following: September 30, 2016 December 31, 2015 Accounts Receivable Securitization Facility (1) $ 579 $ 571 $2.5 billion ABL Facility (2) 1,737 1,579 7 3 / 8 percent Senior Notes (3) — 740 8 1 / 4 percent Senior Notes (3) — 315 7 5 / 8 percent Senior Notes 1,308 1,306 6 1 / 8 percent Senior Notes 936 937 4 5 / 8 percent Senior Secured Notes 990 989 5 3 / 4 percent Senior Notes 839 838 5 1 / 2 percent Senior Notes 792 791 5 7 / 8 percent Senior Notes (4) 740 — Capital leases 81 96 Total debt 8,002 8,162 Less short-term portion (5) (609 ) (607 ) Total long-term debt $ 7,393 $ 7,555 ___________________ (1) In August 2016, the accounts receivable securitization facility was amended, primarily to extend the maturity date. The amended facility expires on August 29, 2017 and may be further extended on a 364 -day basis by mutual agreement with the purchasers under the accounts receivable securitization facility. At September 30, 2016 , $44 was available under our accounts receivable securitization facility. The interest rate applicable to the accounts receivable securitization facility was 1.4 percent at September 30, 2016 . During the nine months ended September 30, 2016 , the monthly average amount outstanding under the accounts receivable securitization facility was $539 , and the weighted-average interest rate thereon was 1.2 percent . The maximum month-end amount outstanding under the accounts receivable securitization facility during the nine months ended September 30, 2016 was $580 . Borrowings under the accounts receivable securitization facility are permitted only to the extent that the face amount of the receivables in the collateral pool, net of applicable reserves, exceeds the outstanding loans. As of September 30, 2016 , there were $ 623 of receivables, net of applicable reserves, in the collateral pool. (2) At September 30, 2016 , $716 was available under our ABL facility, net of $37 of letters of credit. The interest rate applicable to the ABL facility was 2.0 percent at September 30, 2016 . During the nine months ended September 30, 2016 , the monthly average amount outstanding under the ABL facility was $1.4 billion, and the weighted-average interest rate thereon was 2.1 percent . The maximum month-end amount outstanding under the ABL facility during the nine months ended September 30, 2016 was $1.7 billion . In June 2016, the ABL facility was amended, primarily to extend the maturity date. All amounts borrowed under the ABL facility must be repaid by June 2021. (3) In May 2016, we redeemed all of our 8 1 / 4 percent Senior Notes and $ 550 principal amount of our 7 3 / 8 percent Senior Notes. Upon redemption, we recognized an aggregate loss of $ 25 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the notes. In August 2016, we redeemed the remaining $ 200 principal amount of our 7 3 / 8 percent Senior Notes using borrowings available under our ABL facility. We recognized a loss representing the difference between the net carrying amount and the total purchase price of the notes of $ 10 in interest expense, net upon redemption. (4) In May 2016, URNA issued $ 750 aggregate principal amount of 5 7 / 8 percent Senior Notes (the “5 7 / 8 percent Notes”) which are due September 15, 2026. The net proceeds from the issuance were approximately $ 741 (after deducting offering expenses). The 5 7 / 8 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 5 7 / 8 percent Notes may be redeemed on or after September 15, 2021 , at specified redemption prices that range from 102.938 percent in 2021, to 100 percent in 2024 and thereafter, plus accrued and unpaid interest, if any. The indenture governing the 5 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) additional indebtedness; (iii) mergers, consolidations and acquisitions; (iv) sales, transfers and other dispositions of assets; (v) loans and other investments; (vi) dividends and other distributions, stock repurchases and redemptions and other restricted payments; (vii) restrictions affecting subsidiaries; (viii) transactions with affiliates; and (ix) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 5 7 / 8 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. (5) As of September 30, 2016 , our short-term debt primarily reflects $ 579 of borrowings under our accounts receivable securitization facility. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table sets forth the computation of basic and diluted earnings per share (shares in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Net income available to common stockholders $ 187 $ 215 413 416 Denominator: Denominator for basic earnings per share—weighted-average common shares 85,945 94,213 88,175 95,992 Effect of dilutive securities: Employee stock options 278 291 281 311 4 percent Convertible Senior Notes — 574 — 786 Restricted stock units 222 113 168 196 Denominator for diluted earnings per share—adjusted weighted-average common shares 86,445 95,191 88,624 97,285 Basic earnings per share $ 2.18 $ 2.28 $ 4.68 $ 4.33 Diluted earnings per share $ 2.16 $ 2.25 $ 4.66 $ 4.27 |
Condensed Consolidating Finan25
Condensed Consolidating Financial Information of Guarantor Subsidiaries (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
CONDENSED CONSOLIDATING BALANCE SHEET | The condensed consolidating financial information of Parent and its subsidiaries is as follows: CONDENSED CONSOLIDATING BALANCE SHEET September 30, 2016 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV ASSETS Cash and cash equivalents $ — $ 20 $ — $ 277 $ — $ — $ 297 Accounts receivable, net — 25 — 97 807 — 929 Intercompany receivable (payable) 229 (29 ) (190 ) (121 ) — 111 — Inventory — 65 — 7 — — 72 Prepaid expenses and other assets — 47 — 9 — — 56 Total current assets 229 128 (190 ) 269 807 111 1,354 Rental equipment, net — 5,929 — 498 — — 6,427 Property and equipment, net 38 329 23 45 — — 435 Investments in subsidiaries 1,293 1,033 990 — — (3,316 ) — Goodwill — 3,014 — 253 — — 3,267 Other intangible assets, net — 721 — 61 — — 782 Other long-term assets 3 7 — — — — 10 Total assets $ 1,563 $ 11,161 $ 823 $ 1,126 $ 807 $ (3,205 ) $ 12,275 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 1 $ 26 $ — $ 3 $ 579 $ — $ 609 Accounts payable — 378 — 31 — — 409 Accrued expenses and other liabilities — 368 14 19 1 — 402 Total current liabilities 1 772 14 53 580 — 1,420 Long-term debt 3 7,268 114 8 — — 7,393 Deferred taxes 20 1,768 — 75 — — 1,863 Other long-term liabilities — 60 — — — — 60 Total liabilities 24 9,868 128 136 580 — 10,736 Total stockholders’ equity (deficit) 1,539 1,293 695 990 227 (3,205 ) 1,539 Total liabilities and stockholders’ equity (deficit) $ 1,563 $ 11,161 $ 823 $ 1,126 $ 807 $ (3,205 ) $ 12,275 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV ASSETS Cash and cash equivalents $ — $ 18 $ — $ 161 $ — $ — $ 179 Accounts receivable, net — 41 — 104 785 — 930 Intercompany receivable (payable) 144 40 (176 ) (109 ) — 101 — Inventory — 62 — 7 — — 69 Prepaid expenses and other assets — 98 — 18 — — 116 Total current assets 144 259 (176 ) 181 785 101 1,294 Rental equipment, net — 5,657 — 529 — — 6,186 Property and equipment, net 45 334 20 46 — — 445 Investments in subsidiaries 1,307 958 924 — — (3,189 ) — Goodwill — 3,000 — 243 — — 3,243 Other intangible assets, net — 838 — 67 — — 905 Other long-term assets 3 7 — — — — 10 Total assets $ 1,499 $ 11,053 $ 768 $ 1,066 $ 785 $ (3,088 ) $ 12,083 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 1 $ 34 $ — $ — $ 572 $ — $ 607 Accounts payable — 237 — 34 — — 271 Accrued expenses and other liabilities — 314 14 27 — — 355 Total current liabilities 1 585 14 61 572 — 1,233 Long-term debt 4 7,430 110 11 — — 7,555 Deferred taxes 18 1,677 — 70 — — 1,765 Other long-term liabilities — 54 — — — — 54 Total liabilities 23 9,746 124 142 572 — 10,607 Total stockholders’ equity (deficit) 1,476 1,307 644 924 213 (3,088 ) 1,476 Total liabilities and stockholders’ equity (deficit) $ 1,499 $ 11,053 $ 768 $ 1,066 $ 785 $ (3,088 ) $ 12,083 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME | CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2016 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 1,208 $ — $ 114 $ — $ — $ 1,322 Sales of rental equipment — 99 — 13 — — 112 Sales of new equipment — 28 — 2 — — 30 Contractor supplies sales — 17 — 2 — — 19 Service and other revenues — 22 — 3 — — 25 Total revenues — 1,374 — 134 — — 1,508 Cost of revenues: Cost of equipment rentals, excluding depreciation — 435 — 51 — — 486 Depreciation of rental equipment — 227 — 23 — — 250 Cost of rental equipment sales — 61 — 7 — — 68 Cost of new equipment sales — 23 — 2 — — 25 Cost of contractor supplies sales — 11 — 2 — — 13 Cost of service and other revenues — 11 — (1 ) — — 10 Total cost of revenues — 768 — 84 — — 852 Gross profit — 606 — 50 — — 656 Selling, general and administrative expenses 2 151 — 18 8 — 179 Restructuring charge — 4 — — — — 4 Non-rental depreciation and amortization 3 52 — 6 — — 61 Operating (loss) income (5 ) 399 — 26 (8 ) — 412 Interest (income) expense, net (1 ) 109 1 1 2 (2 ) 110 Other (income) expense, net (123 ) 136 — 9 (23 ) — (1 ) Income (loss) before provision for income taxes 119 154 (1 ) 16 13 2 303 Provision for income taxes 42 64 — 5 5 — 116 Income (loss) before equity in net earnings (loss) of subsidiaries 77 90 (1 ) 11 8 2 187 Equity in net earnings (loss) of subsidiaries 110 20 11 — — (141 ) — Net income (loss) 187 110 10 11 8 (139 ) 187 Other comprehensive (loss) income (9 ) (9 ) (9 ) (7 ) — 25 (9 ) Comprehensive income (loss) $ 178 $ 101 $ 1 $ 4 $ 8 $ (114 ) $ 178 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2015 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 1,200 $ — $ 126 $ — $ — $ 1,326 Sales of rental equipment — 124 — 17 — — 141 Sales of new equipment — 32 — 6 — — 38 Contractor supplies sales — 18 — 3 — — 21 Service and other revenues — 20 — 4 — — 24 Total revenues — 1,394 — 156 — — 1,550 Cost of revenues: Cost of equipment rentals, excluding depreciation — 421 — 49 — — 470 Depreciation of rental equipment — 225 — 24 — — 249 Cost of rental equipment sales — 75 — 10 — — 85 Cost of new equipment sales — 26 — 5 — — 31 Cost of contractor supplies sales — 12 — 3 — — 15 Cost of service and other revenues — 10 — — — — 10 Total cost of revenues — 769 — 91 — — 860 Gross profit — 625 — 65 — — 690 Selling, general and administrative expenses (10 ) 160 2 21 5 — 178 Non-rental depreciation and amortization 4 55 1 6 — — 66 Operating income (loss) 6 410 (3 ) 38 (5 ) — 446 Interest (income) expense, net (1 ) 106 1 — 2 (1 ) 107 Other (income) expense, net (1) (275 ) 273 (2 ) 30 (27 ) — (1 ) Income (loss) before provision (benefit) for income taxes 282 31 (2 ) 8 20 1 340 Provision (benefit) for income taxes 118 (2 ) — 2 7 — 125 Income (loss) before equity in net earnings (loss) of subsidiaries 164 33 (2 ) 6 13 1 215 Equity in net earnings (loss) of subsidiaries 51 18 6 — — (75 ) — Net income (loss) 215 51 4 6 13 (74 ) 215 Other comprehensive (loss) income (72 ) (72 ) (70 ) (56 ) — 198 (72 ) Comprehensive income (loss) $ 143 $ (21 ) $ (66 ) $ (50 ) $ 13 $ 124 $ 143 (1) Other (income) expense, net includes an adjustment to the amount of royalties Holdings receives from URNA and its subsidiaries as discussed below (see Item 2- Management’s Discussion and Analysis of Financial Condition and Results of Operations- Liquidity and Capital Resources- Relationship between Holdings and URNA). CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2016 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 3,335 $ — $ 308 $ — $ — $ 3,643 Sales of rental equipment — 320 — 41 — — 361 Sales of new equipment — 86 — 10 — — 96 Contractor supplies sales — 52 — 8 — — 60 Service and other revenues — 69 — 10 — — 79 Total revenues — 3,862 — 377 — — 4,239 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,246 — 145 — — 1,391 Depreciation of rental equipment — 667 — 68 — — 735 Cost of rental equipment sales — 193 — 22 — — 215 Cost of new equipment sales — 71 — 8 — — 79 Cost of contractor supplies sales — 35 — 6 — — 41 Cost of service and other revenues — 30 — 2 — — 32 Total cost of revenues — 2,242 — 251 — — 2,493 Gross profit — 1,620 — 126 — — 1,746 Selling, general and administrative expenses 10 450 — 55 18 — 533 Merger related costs — — — — — — — Restructuring charge — 7 — 1 — — 8 Non-rental depreciation and amortization 11 163 — 18 — — 192 Operating (loss) income (21 ) 1,000 — 52 (18 ) — 1,013 Interest (income) expense, net (4 ) 348 2 2 5 (4 ) 349 Other (income) expense, net (345 ) 382 — 29 (69 ) — (3 ) Income (loss) before provision for income taxes 328 270 (2 ) 21 46 4 667 Provision for income taxes 121 109 — 6 18 — 254 Income (loss) before equity in net earnings (loss) of subsidiaries 207 161 (2 ) 15 28 4 413 Equity in net earnings (loss) of subsidiaries 206 45 15 — — (266 ) — Net income (loss) 413 206 13 15 28 (262 ) 413 Other comprehensive income (loss) 54 54 51 41 — (146 ) 54 Comprehensive income (loss) $ 467 $ 260 $ 64 $ 56 $ 28 $ (408 ) $ 467 CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2015 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Revenues: Equipment rentals $ — $ 3,298 $ — $ 373 $ — $ — $ 3,671 Sales of rental equipment — 336 — 45 — — 381 Sales of new equipment — 95 — 15 — — 110 Contractor supplies sales — 52 — 8 — — 60 Service and other revenues — 61 — 11 — — 72 Total revenues — 3,842 — 452 — — 4,294 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,194 — 165 — — 1,359 Depreciation of rental equipment — 652 — 72 — — 724 Cost of rental equipment sales — 192 — 25 — — 217 Cost of new equipment sales — 79 — 12 — — 91 Cost of contractor supplies sales — 36 — 6 — — 42 Cost of service and other revenues — 25 — 4 — — 29 Total cost of revenues — 2,178 — 284 — — 2,462 Gross profit — 1,664 — 168 — — 1,832 Selling, general and administrative expenses (11 ) 464 2 59 20 — 534 Merger related costs — (26 ) — — — — (26 ) Restructuring charge — 1 — — — — 1 Non-rental depreciation and amortization 12 171 1 18 — — 202 Operating (loss) income (1 ) 1,054 (3 ) 91 (20 ) — 1,121 Interest (income) expense, net (2 ) 457 3 2 4 (4 ) 460 Other (income) expense, net (348 ) 380 (1 ) 33 (74 ) — (10 ) Income (loss) before provision for income taxes 349 217 (5 ) 56 50 4 671 Provision for income taxes 149 69 — 18 19 — 255 Income (loss) before equity in net earnings (loss) of subsidiaries 200 148 (5 ) 38 31 4 416 Equity in net earnings (loss) of subsidiaries 216 68 38 — — (322 ) — Net income (loss) 416 216 33 38 31 (318 ) 416 Other comprehensive (loss) income (144 ) (144 ) (144 ) (114 ) — 402 (144 ) Comprehensive income (loss) $ 272 $ 72 $ (111 ) $ (76 ) $ 31 $ 84 $ 272 |
CONDENSED CONSOLIDATING CASH FLOW INFORMATION | CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Nine Months Ended September 30, 2016 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Net cash provided by (used in) operating activities $ 4 $ 1,513 $ (2 ) $ 108 $ 7 $ — $ 1,630 Net cash (used in) provided by investing activities (4 ) (862 ) — 1 — — (865 ) Net cash (used in) provided by financing activities — (649 ) 2 (2 ) (7 ) — (656 ) Effect of foreign exchange rates — — — 9 — — 9 Net increase in cash and cash equivalents — 2 — 116 — — 118 Cash and cash equivalents at beginning of period — 18 — 161 — — 179 Cash and cash equivalents at end of period $ — $ 20 $ — $ 277 $ — $ — $ 297 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Nine Months Ended September 30, 2015 Parent URNA Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Foreign SPV Net cash provided by (used in) operating activities $ 9 $ 1,440 $ (2 ) $ 157 $ (47 ) $ — $ 1,557 Net cash used in investing activities (9 ) (1,062 ) — (121 ) — — (1,192 ) Net cash (used in) provided by financing activities — (370 ) 2 (7 ) 47 — (328 ) Effect of foreign exchange rates — — — (24 ) — — (24 ) Net increase in cash and cash equivalents — 8 — 5 — — 13 Cash and cash equivalents at beginning of period — 8 — 150 — — 158 Cash and cash equivalents at end of period $ — $ 16 $ — $ 155 $ — $ — $ 171 |
Segment Information (Financial
Segment Information (Financial information by segment) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)location | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)location | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information | |||||
Equipment rentals | $ 1,322 | $ 1,326 | $ 3,643 | $ 3,671 | |
Sales of rental equipment | 112 | 141 | 361 | 381 | |
Sales of new equipment | 30 | 38 | 96 | 110 | |
Contractor supplies sales | 19 | 21 | 60 | 60 | |
Service and other revenues | 25 | 24 | 79 | 72 | |
Total revenues | 1,508 | 1,550 | 4,239 | 4,294 | |
Depreciation and amortization expense | 311 | 315 | 927 | 926 | |
Gross profit | 656 | 690 | 1,746 | 1,832 | |
Capital expenditures | 1,210 | 1,501 | |||
Assets | $ 12,275 | $ 12,275 | $ 12,083 | ||
General rentals | |||||
Segment Reporting Information | |||||
Number of geographic regions entity operates in (locations) | location | 9 | 9 | |||
Equipment rentals | $ 1,097 | 1,120 | $ 3,067 | 3,144 | |
Sales of rental equipment | 103 | 132 | 334 | 356 | |
Sales of new equipment | 27 | 33 | 84 | 94 | |
Contractor supplies sales | 16 | 18 | 49 | 51 | |
Service and other revenues | 23 | 23 | 71 | 65 | |
Total revenues | 1,266 | 1,326 | 3,605 | 3,710 | |
Depreciation and amortization expense | 266 | 272 | 791 | 798 | |
Capital expenditures | 1,086 | 1,325 | |||
Assets | 10,731 | 10,731 | 10,561 | ||
Trench, power and pump | |||||
Segment Reporting Information | |||||
Equipment rentals | 225 | 206 | 576 | 527 | |
Sales of rental equipment | 9 | 9 | 27 | 25 | |
Sales of new equipment | 3 | 5 | 12 | 16 | |
Contractor supplies sales | 3 | 3 | 11 | 9 | |
Service and other revenues | 2 | 1 | 8 | 7 | |
Total revenues | 242 | 224 | 634 | 584 | |
Depreciation and amortization expense | 45 | 43 | 136 | 128 | |
Capital expenditures | 124 | 176 | |||
Assets | 1,544 | 1,544 | $ 1,522 | ||
Equipment rentals | |||||
Segment Reporting Information | |||||
Gross profit | 586 | 607 | 1,517 | 1,588 | |
Equipment rentals | General rentals | |||||
Segment Reporting Information | |||||
Gross profit | 469 | 500 | 1,243 | 1,339 | |
Equipment rentals | Trench, power and pump | |||||
Segment Reporting Information | |||||
Gross profit | $ 117 | $ 107 | $ 274 | $ 249 |
Segment Information (Reconcilia
Segment Information (Reconciliation to income (loss) from continuing operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Gross profit | $ 656 | $ 690 | $ 1,746 | $ 1,832 |
Selling, general and administrative expenses | (179) | (178) | (533) | (534) |
Merger related costs | 0 | 0 | 0 | 26 |
Restructuring charge | (4) | 0 | (8) | (1) |
Non-rental depreciation and amortization | (61) | (66) | (192) | (202) |
Interest expense, net | (110) | (107) | (349) | (460) |
Other income, net | 1 | 1 | 3 | 10 |
Income before provision for income taxes | 303 | 340 | 667 | 671 |
Equipment rentals | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Gross profit | 586 | 607 | 1,517 | 1,588 |
Other lines of business | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Gross profit | $ 70 | $ 83 | $ 229 | $ 244 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) $ in Millions | Sep. 30, 2016USD ($)restructuring_program |
Restructuring Cost and Reserve | |
Expected restructuring costs | $ 20 |
Restructuring costs incurred to date | $ 11 |
Closed Restructuring Programs | |
Restructuring Cost and Reserve | |
Number of restructuring programs | restructuring_program | 2 |
Restructuring Charges (Schedule
Restructuring Charges (Schedule of restructuring charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning reserve balance | $ 16 | |||
Charged to Costs and Expenses | $ 4 | $ 0 | 8 | $ 1 |
Payments and Other | (11) | |||
Ending reserve balance | 13 | 13 | ||
Branch closure charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning reserve balance | 13 | |||
Charged to Costs and Expenses | 4 | |||
Payments and Other | (5) | |||
Ending reserve balance | 12 | 12 | ||
Severance costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning reserve balance | 3 | |||
Charged to Costs and Expenses | 4 | |||
Payments and Other | (6) | |||
Ending reserve balance | 1 | 1 | ||
Closed Restructuring Programs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning reserve balance | 13 | |||
Charged to Costs and Expenses | 1 | |||
Payments and Other | (5) | |||
Ending reserve balance | 9 | 9 | ||
Closed Restructuring Programs | Branch closure charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning reserve balance | 13 | |||
Charged to Costs and Expenses | 1 | |||
Payments and Other | (5) | |||
Ending reserve balance | 9 | 9 | ||
Closed Restructuring Programs | Severance costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning reserve balance | 0 | |||
Charged to Costs and Expenses | 0 | |||
Payments and Other | 0 | |||
Ending reserve balance | 0 | 0 | ||
2015-2016 Cost Savings Restructuring Program | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning reserve balance | 3 | |||
Charged to Costs and Expenses | 7 | |||
Payments and Other | (6) | |||
Ending reserve balance | 4 | 4 | ||
2015-2016 Cost Savings Restructuring Program | Branch closure charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning reserve balance | 0 | |||
Charged to Costs and Expenses | 3 | |||
Payments and Other | 0 | |||
Ending reserve balance | 3 | 3 | ||
2015-2016 Cost Savings Restructuring Program | Severance costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning reserve balance | 3 | |||
Charged to Costs and Expenses | 4 | |||
Payments and Other | (6) | |||
Ending reserve balance | $ 1 | $ 1 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) gal in Millions, CAD in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016CAD | Sep. 30, 2016CADgal | |
Diesel swap | ||
Derivative [Line Items] | ||
Fixed price swap contract (in gallons) | gal | 9.8 | |
Foreign contracts | ||
Derivative [Line Items] | ||
Derivative purchases of underlying currency (in Canadian Dollars) | CAD | CAD 301 | CAD 552 |
Derivatives (Effect of derivati
Derivatives (Effect of derivatives on consolidated statements of income) (Details) gal in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)gal | Sep. 30, 2015USD ($)gal | Sep. 30, 2016USD ($)gal | Sep. 30, 2015USD ($)gal | |
Fixed price swap contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Purchases of diesel covered by the fixed price swaps (in gallons) | gal | 2.7 | 2.8 | 7.7 | 8.2 |
Fixed price swap contracts | Designated as hedging instruments | Cost of equipment rentals, excluding depreciation | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of income (expense) recognized on derivative | $ (1) | $ (2) | $ (5) | $ (5) |
Amount of income (expense) recognized on hedged item | (6) | (7) | (17) | (23) |
Foreign currency forward contracts | Not Designated as hedging instruments | Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of income (expense) recognized on derivative | (4) | (5) | (1) | (5) |
Amount of income (expense) recognized on hedged item | $ 4 | $ 5 | $ 1 | $ 5 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - Diesel swap gal in Millions | 9 Months Ended |
Sep. 30, 2016$ / galgal | |
Derivatives, Fair Value [Line Items] | |
Fixed price swap contract (in gallons) | gal | 9.8 |
Average contract price (in dollars per gallon) | 2.60 |
Average forward price (in dollars per gallon) | 2.56 |
Fair Value Measurements (Fair v
Fair Value Measurements (Fair value of financial instruments) (Details) - Senior notes - Level 1 - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes | $ 5,605 | $ 5,916 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes | $ 5,855 | $ 6,030 |
Debt (Schedule of long-term deb
Debt (Schedule of long-term debt instruments) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Aug. 31, 2016 | May 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2024 | Dec. 31, 2021 | Dec. 31, 2015 | |
Debt Instrument | |||||||
Total debt | $ 8,002,000,000 | $ 8,162,000,000 | |||||
Less short-term portion | (609,000,000) | (607,000,000) | |||||
Total long-term debt | 7,393,000,000 | 7,555,000,000 | |||||
Loss on repurchase/redemption of debt securities and amendment of ABL facility | $ 36,000,000 | $ 123,000,000 | |||||
Accounts Receivable Securitization Facility | |||||||
Debt Instrument | |||||||
Credit facility interest rate at period end | 1.40% | ||||||
$2.5 billion ABL Facility | URNA and subsidiaries | |||||||
Debt Instrument | |||||||
Maximum borrowing capacity | $ 2,500,000,000 | $ 2,500,000,000 | |||||
7 3/8 percent Senior Notes | |||||||
Debt Instrument | |||||||
Stated interest rate | 7.375% | 7.375% | |||||
7 3/8 percent Senior Notes | Interest expense | |||||||
Debt Instrument | |||||||
Loss on repurchase/redemption of debt securities and amendment of ABL facility | $ 10,000,000 | ||||||
8 1/4 percent Senior Notes | |||||||
Debt Instrument | |||||||
Stated interest rate | 8.25% | 8.25% | |||||
7 5/8 percent Senior Notes | |||||||
Debt Instrument | |||||||
Stated interest rate | 7.625% | 7.625% | |||||
6 1/8 percent Senior Notes | |||||||
Debt Instrument | |||||||
Stated interest rate | 6.125% | 6.125% | |||||
4 5/8 percent Senior Secured Notes | |||||||
Debt Instrument | |||||||
Stated interest rate | 4.625% | 4.625% | |||||
5 3/4 percent Senior Notes | |||||||
Debt Instrument | |||||||
Stated interest rate | 5.75% | 5.75% | |||||
5 1/2 percent Senior Notes | |||||||
Debt Instrument | |||||||
Stated interest rate | 5.50% | 5.50% | |||||
5 7/8 percent Senior Notes | |||||||
Debt Instrument | |||||||
Stated interest rate | 5.875% | 5.875% | |||||
Capital leases | URNA and subsidiaries | |||||||
Debt Instrument | |||||||
Total debt | $ 81,000,000 | $ 96,000,000 | |||||
7 3/8 Senior Notes and 8 1/4 percent Senior Notes | Interest expense | |||||||
Debt Instrument | |||||||
Loss on repurchase/redemption of debt securities and amendment of ABL facility | $ 25,000,000 | ||||||
Credit facility | $2.5 billion ABL Facility | |||||||
Debt Instrument | |||||||
Current borrowing capacity under credit facility | $ 716,000,000 | ||||||
Credit facility interest rate at period end | 2.00% | ||||||
Letters of credit outstanding | $ 37,000,000 | ||||||
Average outstanding amount | $ 1,400,000,000 | ||||||
Weighted average interest rate, long-term | 2.10% | ||||||
ABL Facility maximum month-end outstanding amount | $ 1,700,000,000 | ||||||
Credit facility | $2.5 billion ABL Facility | URNA and subsidiaries | |||||||
Debt Instrument | |||||||
Total debt | 1,737,000,000 | 1,579,000,000 | |||||
Senior notes | 7 3/8 percent Senior Notes | |||||||
Debt Instrument | |||||||
Face amount | $ 200,000,000 | 550,000,000 | |||||
Senior notes | 7 3/8 percent Senior Notes | URNA and subsidiaries | |||||||
Debt Instrument | |||||||
Total debt | 0 | 740,000,000 | |||||
Senior notes | 8 1/4 percent Senior Notes | URNA and subsidiaries | |||||||
Debt Instrument | |||||||
Total debt | 0 | 315,000,000 | |||||
Senior notes | 7 5/8 percent Senior Notes | URNA and subsidiaries | |||||||
Debt Instrument | |||||||
Total debt | 1,308,000,000 | 1,306,000,000 | |||||
Senior notes | 6 1/8 percent Senior Notes | URNA and subsidiaries | |||||||
Debt Instrument | |||||||
Total debt | 936,000,000 | 937,000,000 | |||||
Senior notes | 5 3/4 percent Senior Notes | URNA and subsidiaries | |||||||
Debt Instrument | |||||||
Total debt | 839,000,000 | 838,000,000 | |||||
Senior notes | 5 1/2 percent Senior Notes | URNA and subsidiaries | |||||||
Debt Instrument | |||||||
Total debt | 792,000,000 | 791,000,000 | |||||
Senior notes | 5 7/8 percent Senior Notes | |||||||
Debt Instrument | |||||||
Proceeds from issuance of long-term debt | $ 741,000,000 | ||||||
Debt redemption percentage | 101.00% | ||||||
Senior notes | 5 7/8 percent Senior Notes | URNA and subsidiaries | |||||||
Debt Instrument | |||||||
Total debt | 740,000,000 | 0 | |||||
Face amount | $ 750,000,000 | ||||||
Senior notes | 5 7/8 percent Senior Notes | Forecast | |||||||
Debt Instrument | |||||||
Debt redemption percentage | 100.00% | 102.938% | |||||
Senior secured notes | 4 5/8 percent Senior Secured Notes | URNA and subsidiaries | |||||||
Debt Instrument | |||||||
Total debt | $ 990,000,000 | 989,000,000 | |||||
Accounts receivable facility | Accounts Receivable Securitization Facility | |||||||
Debt Instrument | |||||||
Maturity extension period | 364 days | ||||||
Current borrowing capacity under credit facility | $ 44,000,000 | ||||||
Average outstanding amount under facility | $ 539,000,000 | ||||||
Weighted average interest rate, short-term | 1.20% | ||||||
A/R Securitization maximum month-end outstanding amount | $ 580,000,000 | ||||||
Collateral amount | 623,000,000 | ||||||
Accounts receivable facility | Accounts Receivable Securitization Facility | URNA and subsidiaries | |||||||
Debt Instrument | |||||||
Total debt | $ 579,000,000 | $ 571,000,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2016 | |
ABL Facility | |
Debt Instrument | |
Maximum revolving credit amount percentage | 10.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Net income available to common stockholders | $ 187 | $ 215 | $ 413 | $ 416 |
Denominator: | ||||
Denominator for basic earnings per share—weighted-average common shares (in shares) | 85,945 | 94,213 | 88,175 | 95,992 |
Effect of dilutive securities: | ||||
4 percent Convertible Senior Notes (in shares) | 0 | 574 | 0 | 786 |
Denominator for diluted earnings per share—adjusted weighted-average common shares (in shares) | 86,445 | 95,191 | 88,624 | 97,285 |
Basic earnings per share (in dollars per share) | $ 2.18 | $ 2.28 | $ 4.68 | $ 4.33 |
Diluted earnings per share (in dollars per share) | $ 2.16 | $ 2.25 | $ 4.66 | $ 4.27 |
Convertible senior notes | Convertible subordinated notes—4 percent | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Stated interest rate | 4.00% | 4.00% | 4.00% | 4.00% |
Employee stock options | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities, share-based payment arrangements (in shares) | 278 | 291 | 281 | 311 |
Restricted stock units | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities, share-based payment arrangements (in shares) | 222 | 113 | 168 | 196 |
Condensed Consolidating Finan37
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING BALANCE SHEET (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 297 | $ 179 | $ 171 | $ 158 |
Accounts receivable, net | 929 | 930 | ||
Intercompany receivable (payable) | 0 | 0 | ||
Inventory | 72 | 69 | ||
Prepaid expenses and other assets | 56 | 116 | ||
Total current assets | 1,354 | 1,294 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 3,267 | 3,243 | ||
Other intangible assets, net | 782 | 905 | ||
Other long-term assets | 10 | 10 | ||
Total assets | 12,275 | 12,083 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 609 | 607 | ||
Accounts payable | 409 | 271 | ||
Accrued expenses and other liabilities | 402 | 355 | ||
Total current liabilities | 1,420 | 1,233 | ||
Long-term debt | 7,393 | 7,555 | ||
Deferred taxes | 1,863 | 1,765 | ||
Other long-term liabilities | 60 | 54 | ||
Total liabilities | 10,736 | 10,607 | ||
Total stockholders’ equity (deficit) | 1,539 | 1,476 | ||
Total liabilities and stockholders’ equity | $ 12,275 | 12,083 | ||
Parent | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Ownership percentage in subsidiaries | 100.00% | |||
ASSETS | ||||
Cash and cash equivalents | $ 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivable (payable) | 229 | 144 | ||
Inventory | 0 | 0 | ||
Prepaid expenses and other assets | 0 | 0 | ||
Total current assets | 229 | 144 | ||
Investments in subsidiaries | 1,293 | 1,307 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other long-term assets | 3 | 3 | ||
Total assets | 1,563 | 1,499 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 1 | 1 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Total current liabilities | 1 | 1 | ||
Long-term debt | 3 | 4 | ||
Deferred taxes | 20 | 18 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 24 | 23 | ||
Total stockholders’ equity (deficit) | 1,539 | 1,476 | ||
Total liabilities and stockholders’ equity | 1,563 | 1,499 | ||
URNA | ||||
ASSETS | ||||
Cash and cash equivalents | 20 | 18 | 16 | 8 |
Accounts receivable, net | 25 | 41 | ||
Intercompany receivable (payable) | (29) | 40 | ||
Inventory | 65 | 62 | ||
Prepaid expenses and other assets | 47 | 98 | ||
Total current assets | 128 | 259 | ||
Investments in subsidiaries | 1,033 | 958 | ||
Goodwill | 3,014 | 3,000 | ||
Other intangible assets, net | 721 | 838 | ||
Other long-term assets | 7 | 7 | ||
Total assets | 11,161 | 11,053 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 26 | 34 | ||
Accounts payable | 378 | 237 | ||
Accrued expenses and other liabilities | 368 | 314 | ||
Total current liabilities | 772 | 585 | ||
Long-term debt | 7,268 | 7,430 | ||
Deferred taxes | 1,768 | 1,677 | ||
Other long-term liabilities | 60 | 54 | ||
Total liabilities | 9,868 | 9,746 | ||
Total stockholders’ equity (deficit) | 1,293 | 1,307 | ||
Total liabilities and stockholders’ equity | $ 11,161 | 11,053 | ||
Guarantor Subsidiaries | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Ownership percentage in subsidiaries | 100.00% | |||
ASSETS | ||||
Cash and cash equivalents | $ 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivable (payable) | (190) | (176) | ||
Inventory | 0 | 0 | ||
Prepaid expenses and other assets | 0 | 0 | ||
Total current assets | (190) | (176) | ||
Investments in subsidiaries | 990 | 924 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 823 | 768 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 14 | 14 | ||
Total current liabilities | 14 | 14 | ||
Long-term debt | 114 | 110 | ||
Deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 128 | 124 | ||
Total stockholders’ equity (deficit) | 695 | 644 | ||
Total liabilities and stockholders’ equity | 823 | 768 | ||
Non Guarantor Subsidiaries - Foreign | ||||
ASSETS | ||||
Cash and cash equivalents | 277 | 161 | 155 | 150 |
Accounts receivable, net | 97 | 104 | ||
Intercompany receivable (payable) | (121) | (109) | ||
Inventory | 7 | 7 | ||
Prepaid expenses and other assets | 9 | 18 | ||
Total current assets | 269 | 181 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 253 | 243 | ||
Other intangible assets, net | 61 | 67 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 1,126 | 1,066 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 3 | 0 | ||
Accounts payable | 31 | 34 | ||
Accrued expenses and other liabilities | 19 | 27 | ||
Total current liabilities | 53 | 61 | ||
Long-term debt | 8 | 11 | ||
Deferred taxes | 75 | 70 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 136 | 142 | ||
Total stockholders’ equity (deficit) | 990 | 924 | ||
Total liabilities and stockholders’ equity | 1,126 | 1,066 | ||
Non Guarantor Subsidiaries - SPV | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 807 | 785 | ||
Intercompany receivable (payable) | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid expenses and other assets | 0 | 0 | ||
Total current assets | 807 | 785 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 807 | 785 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 579 | 572 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 1 | 0 | ||
Total current liabilities | 580 | 572 | ||
Long-term debt | 0 | 0 | ||
Deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 580 | 572 | ||
Total stockholders’ equity (deficit) | 227 | 213 | ||
Total liabilities and stockholders’ equity | 807 | 785 | ||
Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivable (payable) | 111 | 101 | ||
Inventory | 0 | 0 | ||
Prepaid expenses and other assets | 0 | 0 | ||
Total current assets | 111 | 101 | ||
Investments in subsidiaries | (3,316) | (3,189) | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | (3,205) | (3,088) | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Total stockholders’ equity (deficit) | (3,205) | (3,088) | ||
Total liabilities and stockholders’ equity | (3,205) | (3,088) | ||
Rental equipment, net | ||||
ASSETS | ||||
Property, plant and equipment, net | 6,427 | 6,186 | ||
Rental equipment, net | Parent | ||||
ASSETS | ||||
Property, plant and equipment, net | 0 | 0 | ||
Rental equipment, net | URNA | ||||
ASSETS | ||||
Property, plant and equipment, net | 5,929 | 5,657 | ||
Rental equipment, net | Guarantor Subsidiaries | ||||
ASSETS | ||||
Property, plant and equipment, net | 0 | 0 | ||
Rental equipment, net | Non Guarantor Subsidiaries - Foreign | ||||
ASSETS | ||||
Property, plant and equipment, net | 498 | 529 | ||
Rental equipment, net | Non Guarantor Subsidiaries - SPV | ||||
ASSETS | ||||
Property, plant and equipment, net | 0 | 0 | ||
Rental equipment, net | Eliminations | ||||
ASSETS | ||||
Property, plant and equipment, net | 0 | 0 | ||
Property and equipment, net | ||||
ASSETS | ||||
Property, plant and equipment, net | 435 | 445 | ||
Property and equipment, net | Parent | ||||
ASSETS | ||||
Property, plant and equipment, net | 38 | 45 | ||
Property and equipment, net | URNA | ||||
ASSETS | ||||
Property, plant and equipment, net | 329 | 334 | ||
Property and equipment, net | Guarantor Subsidiaries | ||||
ASSETS | ||||
Property, plant and equipment, net | 23 | 20 | ||
Property and equipment, net | Non Guarantor Subsidiaries - Foreign | ||||
ASSETS | ||||
Property, plant and equipment, net | 45 | 46 | ||
Property and equipment, net | Non Guarantor Subsidiaries - SPV | ||||
ASSETS | ||||
Property, plant and equipment, net | 0 | 0 | ||
Property and equipment, net | Eliminations | ||||
ASSETS | ||||
Property, plant and equipment, net | 0 | $ 0 | ||
ABL Facility | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Line of credit facility, restricted payment capacity | 561 | |||
ABL Facility | URNA | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Line of credit facility, restricted payment capacity | $ 332 | |||
8 1/4 percent Senior Notes | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Stated interest rate | 8.25% | 8.25% |
Condensed Consolidating Finan38
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Revenues: | |||||
Equipment rentals | $ 1,322 | $ 1,326 | $ 3,643 | $ 3,671 | |
Sales of rental equipment | 112 | 141 | 361 | 381 | |
Sales of new equipment | 30 | 38 | 96 | 110 | |
Contractor supplies sales | 19 | 21 | 60 | 60 | |
Service and other revenues | 25 | 24 | 79 | 72 | |
Total revenues | 1,508 | 1,550 | 4,239 | 4,294 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 486 | 470 | 1,391 | 1,359 | |
Depreciation of rental equipment | 250 | 249 | 735 | 724 | |
Cost of rental equipment sales | 68 | 85 | 215 | 217 | |
Cost of new equipment sales | 25 | 31 | 79 | 91 | |
Cost of contractor supplies sales | 13 | 15 | 41 | 42 | |
Cost of service and other revenues | 10 | 10 | 32 | 29 | |
Total cost of revenues | 852 | 860 | 2,493 | 2,462 | |
Gross profit | 656 | 690 | 1,746 | 1,832 | |
Selling, general and administrative expenses | 179 | 178 | 533 | 534 | |
Merger related costs | 0 | 0 | 0 | (26) | |
Restructuring charge | 4 | 0 | 8 | 1 | |
Non-rental depreciation and amortization | 61 | 66 | 192 | 202 | |
Operating income | 412 | 446 | 1,013 | 1,121 | |
Interest (income) expense, net | 110 | 107 | 349 | 460 | |
Other (income) expense, net | (1) | (1) | (3) | (10) | |
Income before provision for income taxes | 303 | 340 | 667 | 671 | |
Provision for income taxes | 116 | 125 | 254 | 255 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | 187 | 215 | 413 | 416 | |
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Net income | 187 | 215 | 413 | 416 | |
Other comprehensive (loss) income | (9) | (72) | 54 | (144) | |
Comprehensive income | [1] | 178 | 143 | 467 | 272 |
Parent | |||||
Revenues: | |||||
Equipment rentals | 0 | 0 | 0 | 0 | |
Sales of rental equipment | 0 | 0 | 0 | 0 | |
Sales of new equipment | 0 | 0 | 0 | 0 | |
Contractor supplies sales | 0 | 0 | 0 | 0 | |
Service and other revenues | 0 | 0 | 0 | 0 | |
Total revenues | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | 0 | |
Depreciation of rental equipment | 0 | 0 | 0 | 0 | |
Cost of rental equipment sales | 0 | 0 | 0 | 0 | |
Cost of new equipment sales | 0 | 0 | 0 | 0 | |
Cost of contractor supplies sales | 0 | 0 | 0 | 0 | |
Cost of service and other revenues | 0 | 0 | 0 | 0 | |
Total cost of revenues | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 2 | (10) | 10 | (11) | |
Merger related costs | 0 | 0 | |||
Restructuring charge | 0 | 0 | 0 | ||
Non-rental depreciation and amortization | 3 | 4 | 11 | 12 | |
Operating income | (5) | 6 | (21) | (1) | |
Interest (income) expense, net | (1) | (1) | (4) | (2) | |
Other (income) expense, net | (123) | (275) | (345) | (348) | |
Income before provision for income taxes | 119 | 282 | 328 | 349 | |
Provision for income taxes | 42 | 118 | 121 | 149 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | 77 | 164 | 207 | 200 | |
Equity in net earnings (loss) of subsidiaries | 110 | 51 | 206 | 216 | |
Net income | 187 | 215 | 413 | 416 | |
Other comprehensive (loss) income | (9) | (72) | 54 | (144) | |
Comprehensive income | 178 | 143 | 467 | 272 | |
URNA | |||||
Revenues: | |||||
Equipment rentals | 1,208 | 1,200 | 3,335 | 3,298 | |
Sales of rental equipment | 99 | 124 | 320 | 336 | |
Sales of new equipment | 28 | 32 | 86 | 95 | |
Contractor supplies sales | 17 | 18 | 52 | 52 | |
Service and other revenues | 22 | 20 | 69 | 61 | |
Total revenues | 1,374 | 1,394 | 3,862 | 3,842 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 435 | 421 | 1,246 | 1,194 | |
Depreciation of rental equipment | 227 | 225 | 667 | 652 | |
Cost of rental equipment sales | 61 | 75 | 193 | 192 | |
Cost of new equipment sales | 23 | 26 | 71 | 79 | |
Cost of contractor supplies sales | 11 | 12 | 35 | 36 | |
Cost of service and other revenues | 11 | 10 | 30 | 25 | |
Total cost of revenues | 768 | 769 | 2,242 | 2,178 | |
Gross profit | 606 | 625 | 1,620 | 1,664 | |
Selling, general and administrative expenses | 151 | 160 | 450 | 464 | |
Merger related costs | 0 | (26) | |||
Restructuring charge | 4 | 7 | 1 | ||
Non-rental depreciation and amortization | 52 | 55 | 163 | 171 | |
Operating income | 399 | 410 | 1,000 | 1,054 | |
Interest (income) expense, net | 109 | 106 | 348 | 457 | |
Other (income) expense, net | 136 | 273 | 382 | 380 | |
Income before provision for income taxes | 154 | 31 | 270 | 217 | |
Provision for income taxes | 64 | (2) | 109 | 69 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | 90 | 33 | 161 | 148 | |
Equity in net earnings (loss) of subsidiaries | 20 | 18 | 45 | 68 | |
Net income | 110 | 51 | 206 | 216 | |
Other comprehensive (loss) income | (9) | (72) | 54 | (144) | |
Comprehensive income | 101 | (21) | 260 | 72 | |
Guarantor Subsidiaries | |||||
Revenues: | |||||
Equipment rentals | 0 | 0 | 0 | 0 | |
Sales of rental equipment | 0 | 0 | 0 | 0 | |
Sales of new equipment | 0 | 0 | 0 | 0 | |
Contractor supplies sales | 0 | 0 | 0 | 0 | |
Service and other revenues | 0 | 0 | 0 | 0 | |
Total revenues | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | 0 | |
Depreciation of rental equipment | 0 | 0 | 0 | 0 | |
Cost of rental equipment sales | 0 | 0 | 0 | 0 | |
Cost of new equipment sales | 0 | 0 | 0 | 0 | |
Cost of contractor supplies sales | 0 | 0 | 0 | 0 | |
Cost of service and other revenues | 0 | 0 | 0 | 0 | |
Total cost of revenues | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 0 | 2 | 0 | 2 | |
Merger related costs | 0 | 0 | |||
Restructuring charge | 0 | 0 | 0 | ||
Non-rental depreciation and amortization | 0 | 1 | 0 | 1 | |
Operating income | 0 | (3) | 0 | (3) | |
Interest (income) expense, net | 1 | 1 | 2 | 3 | |
Other (income) expense, net | 0 | (2) | 0 | (1) | |
Income before provision for income taxes | (1) | (2) | (2) | (5) | |
Provision for income taxes | 0 | 0 | 0 | 0 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | (1) | (2) | (2) | (5) | |
Equity in net earnings (loss) of subsidiaries | 11 | 6 | 15 | 38 | |
Net income | 10 | 4 | 13 | 33 | |
Other comprehensive (loss) income | (9) | (70) | 51 | (144) | |
Comprehensive income | 1 | (66) | 64 | (111) | |
Non Guarantor Subsidiaries - Foreign | |||||
Revenues: | |||||
Equipment rentals | 114 | 126 | 308 | 373 | |
Sales of rental equipment | 13 | 17 | 41 | 45 | |
Sales of new equipment | 2 | 6 | 10 | 15 | |
Contractor supplies sales | 2 | 3 | 8 | 8 | |
Service and other revenues | 3 | 4 | 10 | 11 | |
Total revenues | 134 | 156 | 377 | 452 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 51 | 49 | 145 | 165 | |
Depreciation of rental equipment | 23 | 24 | 68 | 72 | |
Cost of rental equipment sales | 7 | 10 | 22 | 25 | |
Cost of new equipment sales | 2 | 5 | 8 | 12 | |
Cost of contractor supplies sales | 2 | 3 | 6 | 6 | |
Cost of service and other revenues | (1) | 0 | 2 | 4 | |
Total cost of revenues | 84 | 91 | 251 | 284 | |
Gross profit | 50 | 65 | 126 | 168 | |
Selling, general and administrative expenses | 18 | 21 | 55 | 59 | |
Merger related costs | 0 | 0 | |||
Restructuring charge | 0 | 1 | 0 | ||
Non-rental depreciation and amortization | 6 | 6 | 18 | 18 | |
Operating income | 26 | 38 | 52 | 91 | |
Interest (income) expense, net | 1 | 0 | 2 | 2 | |
Other (income) expense, net | 9 | 30 | 29 | 33 | |
Income before provision for income taxes | 16 | 8 | 21 | 56 | |
Provision for income taxes | 5 | 2 | 6 | 18 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | 11 | 6 | 15 | 38 | |
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Net income | 11 | 6 | 15 | 38 | |
Other comprehensive (loss) income | (7) | (56) | 41 | (114) | |
Comprehensive income | 4 | (50) | 56 | (76) | |
Non Guarantor Subsidiaries - SPV | |||||
Revenues: | |||||
Equipment rentals | 0 | 0 | 0 | 0 | |
Sales of rental equipment | 0 | 0 | 0 | 0 | |
Sales of new equipment | 0 | 0 | 0 | 0 | |
Contractor supplies sales | 0 | 0 | 0 | 0 | |
Service and other revenues | 0 | 0 | 0 | 0 | |
Total revenues | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | 0 | |
Depreciation of rental equipment | 0 | 0 | 0 | 0 | |
Cost of rental equipment sales | 0 | 0 | 0 | 0 | |
Cost of new equipment sales | 0 | 0 | 0 | 0 | |
Cost of contractor supplies sales | 0 | 0 | 0 | 0 | |
Cost of service and other revenues | 0 | 0 | 0 | 0 | |
Total cost of revenues | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 8 | 5 | 18 | 20 | |
Merger related costs | 0 | 0 | |||
Restructuring charge | 0 | 0 | 0 | ||
Non-rental depreciation and amortization | 0 | 0 | 0 | 0 | |
Operating income | (8) | (5) | (18) | (20) | |
Interest (income) expense, net | 2 | 2 | 5 | 4 | |
Other (income) expense, net | (23) | (27) | (69) | (74) | |
Income before provision for income taxes | 13 | 20 | 46 | 50 | |
Provision for income taxes | 5 | 7 | 18 | 19 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | 8 | 13 | 28 | 31 | |
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Net income | 8 | 13 | 28 | 31 | |
Other comprehensive (loss) income | 0 | 0 | 0 | 0 | |
Comprehensive income | 8 | 13 | 28 | 31 | |
Eliminations | |||||
Revenues: | |||||
Equipment rentals | 0 | 0 | 0 | 0 | |
Sales of rental equipment | 0 | 0 | 0 | 0 | |
Sales of new equipment | 0 | 0 | 0 | 0 | |
Contractor supplies sales | 0 | 0 | 0 | 0 | |
Service and other revenues | 0 | 0 | 0 | 0 | |
Total revenues | 0 | 0 | 0 | 0 | |
Cost of revenues: | |||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | 0 | |
Depreciation of rental equipment | 0 | 0 | 0 | 0 | |
Cost of rental equipment sales | 0 | 0 | 0 | 0 | |
Cost of new equipment sales | 0 | 0 | 0 | 0 | |
Cost of contractor supplies sales | 0 | 0 | 0 | 0 | |
Cost of service and other revenues | 0 | 0 | 0 | 0 | |
Total cost of revenues | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | |
Merger related costs | 0 | 0 | |||
Restructuring charge | 0 | 0 | 0 | ||
Non-rental depreciation and amortization | 0 | 0 | 0 | 0 | |
Operating income | 0 | 0 | 0 | 0 | |
Interest (income) expense, net | (2) | (1) | (4) | (4) | |
Other (income) expense, net | 0 | 0 | 0 | 0 | |
Income before provision for income taxes | 2 | 1 | 4 | 4 | |
Provision for income taxes | 0 | 0 | 0 | 0 | |
Income (loss) before equity in net earnings (loss) of subsidiaries | 2 | 1 | 4 | 4 | |
Equity in net earnings (loss) of subsidiaries | (141) | (75) | (266) | (322) | |
Net income | (139) | (74) | (262) | (318) | |
Other comprehensive (loss) income | 25 | 198 | (146) | 402 | |
Comprehensive income | $ (114) | $ 124 | $ (408) | $ 84 | |
[1] | There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive (loss) income during 2016 or 2015. There is no tax impact related to the foreign currency translation adjustments, as the earnings are considered permanently reinvested. There were no material taxes associated with other comprehensive (loss) income during 2016 or 2015. |
Condensed Consolidating Finan39
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 1,630 | $ 1,557 |
Net cash (used in) provided by investing activities | (865) | (1,192) |
Net cash (used in) provided by financing activities | (656) | (328) |
Effect of foreign exchange rates | 9 | (24) |
Net increase in cash and cash equivalents | 118 | 13 |
Cash and cash equivalents at beginning of period | 179 | 158 |
Cash and cash equivalents at end of period | 297 | 171 |
Parent | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 4 | 9 |
Net cash (used in) provided by investing activities | (4) | (9) |
Net cash (used in) provided by financing activities | 0 | 0 |
Effect of foreign exchange rates | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
URNA | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 1,513 | 1,440 |
Net cash (used in) provided by investing activities | (862) | (1,062) |
Net cash (used in) provided by financing activities | (649) | (370) |
Effect of foreign exchange rates | 0 | 0 |
Net increase in cash and cash equivalents | 2 | 8 |
Cash and cash equivalents at beginning of period | 18 | 8 |
Cash and cash equivalents at end of period | 20 | 16 |
Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (2) | (2) |
Net cash (used in) provided by investing activities | 0 | 0 |
Net cash (used in) provided by financing activities | 2 | 2 |
Effect of foreign exchange rates | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Non Guarantor Subsidiaries - Foreign | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 108 | 157 |
Net cash (used in) provided by investing activities | 1 | (121) |
Net cash (used in) provided by financing activities | (2) | (7) |
Effect of foreign exchange rates | 9 | (24) |
Net increase in cash and cash equivalents | 116 | 5 |
Cash and cash equivalents at beginning of period | 161 | 150 |
Cash and cash equivalents at end of period | 277 | 155 |
Non Guarantor Subsidiaries - SPV | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 7 | (47) |
Net cash (used in) provided by investing activities | 0 | 0 |
Net cash (used in) provided by financing activities | (7) | 47 |
Effect of foreign exchange rates | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 |
Net cash (used in) provided by financing activities | 0 | 0 |
Effect of foreign exchange rates | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 |