Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 25, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity Registrant Name | United Rentals, Inc. | ||
Entity File Number | 1-13663 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 06-1522496 | ||
Entity Address, Address Line One | 100 First Stamford Place, Suite 700 | ||
Entity Address, City or Town | Stamford | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06902 | ||
City Area Code | 203 | ||
Local Phone Number | 622-3131 | ||
Title of 12(b) Security | Common Stock, $.01 par value, of United Rentals, Inc. | ||
Trading Symbol | URI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,440 | ||
Entity Common Stock, Shares Outstanding | 72,199,276 | ||
Documents Incorporated by Reference | Portions of United Rentals, Inc.’s Proxy Statement related to the 2021 Annual Meeting of Stockholders, which is expected to be filed with the Securities and Exchange Commission on or before March 23, 2021, are incorporated by reference into Part III of this annual report. | ||
Entity Central Index Key | 0001067701 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 202 | $ 52 |
Accounts receivable, net of allowance for doubtful accounts of $108 at December 31, 2020 and $103 at December 31, 2019 | 1,315 | 1,530 |
Inventory | 125 | 120 |
Prepaid expenses and other assets | 375 | 140 |
Total current assets | 2,017 | 1,842 |
Goodwill | 5,168 | 5,154 |
Other intangible assets, net | 648 | 895 |
Operating lease right-of-use assets | 688 | 669 |
Other long-term assets | 38 | 19 |
Total assets | 17,868 | 18,970 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Short-term debt and current maturities of long-term debt | 704 | 997 |
Accounts payable | 466 | 454 |
Accrued expenses and other liabilities | 720 | 747 |
Total current liabilities | 1,890 | 2,198 |
Long-term debt | 8,978 | 10,431 |
Deferred taxes | 1,768 | 1,887 |
Operating lease liabilities | 549 | 533 |
Other long-term liabilities | 138 | 91 |
Total liabilities | 13,323 | 15,140 |
Common stock—$0.01 par value, 500,000,000 shares authorized, 114,210,157 and 72,196,648 shares issued and outstanding, respectively, at December 31, 2020 and 113,825,667 and 74,362,195 shares issued and outstanding, respectively, at December 31, 2019 | 1 | 1 |
Additional paid-in capital | 2,482 | 2,440 |
Retained earnings | 6,165 | 5,275 |
Treasury stock at cost—42,013,509 and 39,463,472 shares at December 31, 2020 and December 31, 2019, respectively | (3,957) | (3,700) |
Accumulated other comprehensive loss | (146) | (186) |
Total stockholders’ equity | 4,545 | 3,830 |
Total liabilities and stockholders’ equity | $ 17,868 | $ 18,970 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Rental equipment, net | ||
ASSETS | ||
Property and equipment, net | $ 8,705 | $ 9,787 |
Property and equipment, net | ||
ASSETS | ||
Property and equipment, net | $ 604 | $ 604 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 108 | $ 103 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 114,210,157 | 113,825,667 |
Common stock, shares outstanding (in shares) | 72,196,648 | 74,362,195 |
Treasury stock (in shares) | 42,013,509 | 39,463,472 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Revenues | $ 8,530 | $ 9,351 | $ 8,047 |
Cost of revenues: | |||
Cost of equipment rentals, excluding depreciation | 2,820 | 3,126 | 2,614 |
Depreciation of rental equipment | 1,601 | 1,631 | 1,363 |
Total cost of revenues | 5,347 | 5,681 | 4,683 |
Gross profit | 3,183 | 3,670 | 3,364 |
Selling, general and administrative expenses | 979 | 1,092 | 1,038 |
Merger related costs | 0 | 1 | 36 |
Restructuring charge | 17 | 18 | 31 |
Non-rental depreciation and amortization | 387 | 407 | 308 |
Operating income | 1,800 | 2,152 | 1,951 |
Interest expense, net | 669 | 648 | 481 |
Other income, net | (8) | (10) | (6) |
Income before provision (benefit) for income taxes | 1,139 | 1,514 | 1,476 |
Provision (benefit) for income taxes | 249 | 340 | 380 |
Net income | $ 890 | $ 1,174 | $ 1,096 |
Basic earnings per share (in dollars per share) | $ 12.24 | $ 15.18 | $ 13.26 |
Diluted earnings per share (in dollars per share) | $ 12.20 | $ 15.11 | $ 13.12 |
Equipment rentals | |||
Revenues: | |||
Revenues | $ 7,140 | $ 7,964 | $ 6,940 |
Sales of rental equipment | |||
Revenues: | |||
Revenue from contract with customer, excluding assessed tax | 858 | 831 | 664 |
Cost of revenues: | |||
Cost of goods and services sold | 526 | 518 | 386 |
Sales of new equipment | |||
Revenues: | |||
Revenue from contract with customer, excluding assessed tax | 247 | 268 | 208 |
Cost of revenues: | |||
Cost of goods and services sold | 214 | 231 | 179 |
Contractor supplies sales | |||
Revenues: | |||
Revenue from contract with customer, excluding assessed tax | 98 | 104 | 91 |
Cost of revenues: | |||
Cost of goods and services sold | 69 | 73 | 60 |
Service and other revenues | |||
Revenues: | |||
Revenue from contract with customer, excluding assessed tax | 187 | 184 | 144 |
Cost of revenues: | |||
Cost of goods and services sold | $ 117 | $ 102 | $ 81 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 890 | $ 1,174 | $ 1,096 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | [1] | 40 | 49 | (84) |
Fixed price diesel swaps | 0 | 2 | (2) | |
Other comprehensive income (loss) | [1] | 40 | 51 | (86) |
Comprehensive income | $ 930 | $ 1,225 | $ 1,010 | |
[1] | There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive income (loss) during the years ended December 31, 2020, 2019 or 2018. There was no material tax impact related to the foreign currency translation adjustments during the years ended December 31, 2020, 2019 or 2018. See note 14 to the consolidated financial statements for a discussion addressing our determination pertaining to the permanent reinvestment of unremitted foreign earnings. There were no material taxes associated with other comprehensive income (loss) during the years ended December 31, 2020, 2019 or 2018. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Reclassification from AOCI, current period, net of tax, attributable to parent | $ 0 | $ 0 | $ 0 |
Other comprehensive income (loss), foreign currency translation adjustment, tax, portion attributable to parent | 0 | 0 | 0 |
Other comprehensive income (loss), tax, portion attributable to parent | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | ||
Balance (in shares) at Dec. 31, 2017 | 84 | 28 | ||||||
Balance at Dec. 31, 2017 | $ 1 | $ 2,356 | $ 3,005 | $ (2,105) | $ (151) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 1,096 | 1,096 | ||||||
Foreign currency translation adjustments | (84) | [1] | (84) | |||||
Fixed price diesel swaps | (2) | (2) | ||||||
Stock compensation expense, net (in shares) | 1 | |||||||
Stock compensation expense, net | 102 | |||||||
Exercise of common stock options | 2 | |||||||
Shares repurchased and retired | (52) | |||||||
Repurchase of common stock (in shares) | 5 | 5 | ||||||
Repurchase of common stock | $ (765) | |||||||
Balance (in shares) at Dec. 31, 2018 | 80 | 33 | ||||||
Balance at Dec. 31, 2018 | $ 1 | 2,408 | 4,101 | $ (2,870) | (237) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,174 | 1,174 | ||||||
Foreign currency translation adjustments | 49 | [1] | 49 | |||||
Fixed price diesel swaps | 2 | 2 | ||||||
Stock compensation expense, net | 61 | |||||||
Exercise of common stock options | 11 | |||||||
Shares repurchased and retired | (40) | |||||||
Repurchase of common stock (in shares) | 6 | 6 | ||||||
Repurchase of common stock | $ (830) | |||||||
Balance (in shares) at Dec. 31, 2019 | 74 | 39 | ||||||
Balance at Dec. 31, 2019 | 3,830 | $ 1 | 2,440 | 5,275 | $ (3,700) | (186) | [2] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 890 | 890 | ||||||
Foreign currency translation adjustments | 40 | [1] | 40 | [2] | ||||
Fixed price diesel swaps | 0 | |||||||
Stock compensation expense, net (in shares) | 1 | |||||||
Stock compensation expense, net | 70 | |||||||
Exercise of common stock options | 1 | |||||||
Shares repurchased and retired | (29) | |||||||
Repurchase of common stock (in shares) | 3 | 3 | ||||||
Repurchase of common stock | $ (257) | |||||||
Balance (in shares) at Dec. 31, 2020 | 72 | 42 | ||||||
Balance at Dec. 31, 2020 | $ 4,545 | $ 1 | $ 2,482 | $ 6,165 | $ (3,957) | $ (146) | [2] | |
[1] | There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive income (loss) during the years ended December 31, 2020, 2019 or 2018. There was no material tax impact related to the foreign currency translation adjustments during the years ended December 31, 2020, 2019 or 2018. See note 14 to the consolidated financial statements for a discussion addressing our determination pertaining to the permanent reinvestment of unremitted foreign earnings. There were no material taxes associated with other comprehensive income (loss) during the years ended December 31, 2020, 2019 or 2018. | |||||||
[2] | As of December 31, 2020, 2019 and 2018, the Accumulated Other Comprehensive Loss balance primarily reflects foreign currency translation adjustments. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities: | |||
Net income | $ 890 | $ 1,174 | $ 1,096 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,988 | 2,038 | 1,671 |
Amortization of deferred financing costs and original issue discounts | 14 | 15 | 12 |
Gain on sales of rental equipment | (332) | (313) | (278) |
Gain on sales of non-rental equipment | (8) | (6) | (6) |
Insurance proceeds from damaged equipment | (40) | (24) | (22) |
Stock compensation expense, net | 70 | 61 | 102 |
Merger related costs | 0 | 1 | 36 |
Restructuring charge | 17 | 18 | 31 |
Loss on repurchase/redemption of debt securities and amendment of ABL facility | 183 | 61 | 0 |
(Decrease) increase in deferred taxes | (121) | 204 | 257 |
Changes in operating assets and liabilities: | |||
Decrease (increase) in accounts receivable | 218 | 39 | (115) |
Increase in inventory | (5) | (8) | (20) |
(Increase) decrease in prepaid expenses and other assets | (228) | (59) | 75 |
Increase (decrease) in accounts payable | 10 | (86) | 49 |
Increase (decrease) in accrued expenses and other liabilities | 2 | (91) | (35) |
Net cash provided by operating activities | 2,658 | 3,024 | 2,853 |
Cash Flows From Investing Activities: | |||
Purchases of rental equipment | (961) | (2,132) | (2,106) |
Purchases of non-rental equipment | (197) | (218) | (185) |
Proceeds from sales of rental equipment | 858 | 831 | 664 |
Proceeds from sales of non-rental equipment | 42 | 37 | 23 |
Insurance proceeds from damaged equipment | 40 | 24 | 22 |
Purchases of other companies, net of cash acquired | (2) | (249) | (2,966) |
Purchases of investments | (3) | (3) | (3) |
Net cash used in investing activities | (223) | (1,710) | (4,551) |
Cash Flows From Financing Activities: | |||
Proceeds from debt | 9,260 | 9,260 | 12,178 |
Payments of debt | (11,245) | (9,678) | (9,942) |
Payments of financing costs | (23) | (28) | (24) |
Proceeds from the exercise of common stock options | 1 | 11 | 2 |
Common stock repurchased | (286) | (870) | (817) |
Net cash (used in) provided by financing activities | (2,293) | (1,305) | 1,397 |
Effect of foreign exchange rates | 8 | 0 | (8) |
Net increase (decrease) in cash and cash equivalents | 150 | 9 | (309) |
Cash and cash equivalents at beginning of year | 52 | 43 | 352 |
Cash and cash equivalents at end of year | 202 | 52 | 43 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 483 | 581 | 455 |
Cash paid for income taxes, net | $ 318 | $ 238 | $ 71 |
Organization, Description of Bu
Organization, Description of Business and Consolidation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Description of Business and Consolidation | Organization, Description of Business and Consolidation United Rentals, Inc. ("Holdings") 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 stockholder. As used in this report, the terms the “Company,” “United Rentals,” “we,” “us,” and “our” refer to United Rentals, Inc. and its subsidiaries, unless otherwise indicated. We rent equipment to a diverse customer base that includes construction and industrial companies, manufacturers, utilities, municipalities, homeowners and others in the United States, Canada and Europe. With the July 2018 acquisition of BakerCorp International Holdings, Inc. (“BakerCorp”), which added 11 European locations in France, Germany, the United Kingdom and the Netherlands to our branch network, we entered into select European markets. In addition to renting equipment, we sell new and used rental equipment, as well as related contractor supplies, parts and service. The accompanying consolidated financial statements include our accounts and those of our controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. We consolidate variable interest entities if we are deemed the primary beneficiary of the entity. COVID-19 The novel coronavirus (“COVID-19”) was first identified in people in late 2019. COVID-19 spread rapidly throughout the world and, in March 2020, the World Health Organization characterized COVID-19 as a pandemic. COVID-19 is a pandemic of respiratory disease spreading from person-to-person that poses a serious public health risk. It has significantly disrupted supply chains and businesses around the world. The extent and duration of the COVID-19 impact, on the operations and financial position of United Rentals, and on the global economy, is uncertain. See "Item 1. Business- Industry Overview and Economic Outlook" above for a discussion of market performance in 2020. The health and safety of our employees and customers remains our top priority, and we have also engaged in extensive contingency planning to manage the business impact of the pandemic. Prior to mid-March 2020, our results were largely in line with expectations. We began to experience a decline in revenues in March 2020, when rental volume declined in response to shelter-in-place orders and other market restrictions. COVID-19 is discussed in more detail throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash Equivalents We consider all highly liquid instruments with maturities of three months or less when purchased to be cash equivalents. Our cash equivalents at December 31, 2020 and 2019 consist of direct obligations of financial institutions rated A or better. Allowance for Doubtful Accounts We maintain allowances for doubtful accounts. These allowances reflect our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectibility. Our allowance for doubtful accounts as of December 31, 2020 included an adjustment for the estimated impact of COVID-19 on future collectibility that was not material to our financial statements. Our estimate could require change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowances. Trade receivables that have contractual maturities of one year or less are written-off when they are determined to be uncollectible based on the criteria necessary to qualify as a deduction for federal tax purposes. Write-offs of such receivables require management approval based on specified dollar thresholds. See note 3 to our consolidated financial statements for further detail. Inventory Inventory consists of new equipment, contractor supplies, tools, parts, fuel and related supply items. Inventory is stated at the lower of cost or market. Cost is determined, depending on the type of inventory, using either a specific identification, weighted-average or first-in, first-out method. Rental Equipment Rental equipment, which includes service and delivery vehicles, is recorded at cost and depreciated over the estimated useful life of the equipment using the straight-line method. The range of estimated useful lives for rental equipment is two Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. The range of estimated useful lives for property and equipment is two Acquisition Accounting We have made a number of acquisitions in the past and may continue to make acquisitions in the future. The assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition. Long-lived assets (principally rental equipment), goodwill and other intangible assets generally represent the largest components of our acquisitions. Rental equipment is valued utilizing either a cost, market or income approach, or a combination of certain of these methods, depending on the asset being valued and the availability of market or income data. The intangible assets that we have acquired are non-compete agreements, customer relationships and trade names and associated trademarks. The estimated fair values of these intangible assets reflect various assumptions about discount rates, revenue growth rates, operating margins, terminal values, useful lives and other prospective financial information. Goodwill is calculated as the excess of the cost of the acquired entity over the net of the fair value of the assets acquired and the liabilities assumed. Non-compete agreements, customer relationships and trade names and associated trademarks are valued based on an excess earnings or income approach based on projected cash flows. Determining the fair value of the assets and liabilities acquired is judgmental in nature and can involve the use of significant estimates and assumptions. The judgments made in determining the estimated fair value assigned to the assets acquired, as well as the estimated life of the assets, can materially impact net income in periods subsequent to the acquisition through depreciation and amortization, and in certain instances through impairment charges, if the asset becomes impaired in the future. As discussed below, we regularly review for impairments. When we make an acquisition, we also acquire other assets and assume liabilities. These other assets and liabilities typically include, but are not limited to, parts inventory, accounts receivable, accounts payable and other working capital items. Because of their short-term nature, the fair values of these other assets and liabilities generally approximate the book values on the acquired entities' balance sheets. Evaluation of Goodwill Impairment Goodwill is tested for impairment annually or more frequently if an event or circumstance indicates that an impairment loss may have been incurred. Application of the goodwill impairment test requires judgment, including: the identification of reporting units; assignment of assets and liabilities to reporting units; assignment of goodwill to reporting units; determination of the fair value of each reporting unit; and an assumption as to the form of the transaction in which the reporting unit would be acquired by a market participant (either a taxable or nontaxable transaction). We estimate the fair value of our reporting units (which are our regions) using a combination of an income approach based on the present value of estimated future cash flows and a market approach based on market price data of shares of our Company and other corporations engaged in similar businesses as well as acquisition multiples paid in recent transactions within our industry (including our own acquisitions). We believe this approach, which utilizes multiple valuation techniques, yields the most appropriate evidence of fair value. As discussed below (see "Guidance Adopted in 2020-Simplifying the Test for Goodwill Impairment"), in 2020, we adopted accounting guidance that eliminated the second step from the goodwill impairment test (this guidance did not have a significant impact on our financial statements). Prior guidance required utilizing a two-step process to review goodwill for impairment. A second step was required if there was an indication that an impairment may exist, and the second step required calculating the potential impairment by comparing the implied fair value of the reporting unit's goodwill (as if purchase accounting were performed on the testing date) with the carrying amount of the goodwill. We did not perform this second step for the goodwill impairment test conducted as of October 1, 2020 or 2019 (for 2020, because the adopted accounting guidance eliminated the second step, and, for 2019, because there was no indication that an impairment may have existed). The first step of the impairment test requires comparing the fair value of a reporting unit with its carrying amount. Financial Accounting Standards Board ("FASB") guidance permits entities to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In connection with our goodwill impairment test that was conducted as of October 1, 2020, we bypassed the qualitative assessment for each reporting unit and quantitatively compared the fair values of our reporting units with their carrying amounts. We considered the impact of COVID-19 when performing the test, and it did not have a material impact on the test results. Our goodwill impairment testing as of this date indicated that all of our reporting units, excluding our Fluid Solutions Europe reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 42 percent. As discussed above, in July 2018, we completed the acquisition of BakerCorp. All of the assets in the Fluid Solutions Europe reporting unit were acquired in the BakerCorp acquisition. The estimated fair value of our Fluid Solutions Europe reporting unit exceeded its carrying amount by 22 percent. As all of the assets in the Fluid Solutions Europe reporting unit were recorded at fair value as of the July 2018 acquisition date, we expected the percentage by which the Fluid Solutions Europe reporting unit’s fair value exceeded its carrying value to be significantly less than the equivalent percentages determined for our other reporting units. In connection with our goodwill impairment test that was conducted as of October 1, 2019, we bypassed the qualitative assessment for each reporting unit and proceeded directly to the first step of the goodwill impairment test. Our goodwill impairment testing as of this date indicated that all of our reporting units, excluding our Fluid Solutions Europe reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 32 percent. As discussed above, in July 2018, we completed the acquisition of BakerCorp. All of the assets in the Fluid Solutions Europe reporting unit were acquired in the BakerCorp acquisition. The estimated fair value of our Fluid Solutions Europe reporting unit exceeded its carrying amount by 12 percent. As all of the assets in the Fluid Solutions Europe reporting unit were recorded at fair value as of the July 2018 acquisition date, we expected the percentage by which the Fluid Solutions Europe reporting unit’s fair value exceeded its carrying value to be significantly less than the equivalent percentages determined for our other reporting units. Restructuring Charges Costs associated with exit or disposal activities, including lease termination costs and certain employee severance costs associated with restructuring, branch closings or other activities, are recognized at fair value when they are incurred. Other Intangible Assets Other intangible assets consist of non-compete agreements, customer relationships and trade names and associated trademarks. The non-compete agreements are being amortized on a straight-line basis over initial periods of approximately 5 years. The customer relationships are being amortized either using the sum of the years' digits method or on a straight-line basis over initial periods ranging from 5 to 15 years. The trade names and associated trademarks are being amortized using the sum of the years' digits method over initial periods of approximately 5 years. We believe that the amortization methods used reflect the estimated pattern in which the economic benefits will be consumed. Long-Lived Assets Long-lived assets are recorded at the lower of amortized cost or fair value. As part of an ongoing review of the valuation of long-lived assets, we assess the carrying value of such assets if facts and circumstances suggest they may be impaired. If this review indicates the carrying value of such an asset may not be recoverable, as determined by an undiscounted cash flow analysis over the remaining useful life, the carrying value would be reduced to its estimated fair value. Translation of Foreign Currency Assets and liabilities of our foreign subsidiaries that have a functional currency other than U.S. dollars are translated into U.S. dollars using exchange rates at the balance sheet date. Revenues and expenses are translated at average exchange rates effective during the year. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive (loss) income within stockholders’ equity. Revenue Recognition As discussed in note 3 to our consolidated financial statements, we recognize revenue in accordance with two different accounting standards: 1) Topic 606 (which addresses revenue from contracts with customers) and 2) Topic 842 (which addresses lease revenue). As discussed in note 13 to our consolidated financial statements, in 2019, we adopted Topic 842. Topic 842 replaced Topic 840, which was the lease accounting standard in effect for the year ended December 31, 2018. As discussed in note 3, most of our revenue is accounted for under Topic 842. The discussion below addresses our primary revenue types based on the accounting standard used to determine the accounting. Lease revenues (Topic 842) The accounting for the significant types of revenue that are accounted for under Topic 842 is discussed below. Owned equipment rentals: Owned equipment rentals represent revenues from renting equipment that we own. We account for such rentals as operating leases. Re-rent revenue: Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. Revenues from contracts with customers (Topic 606) The accounting for the significant types of revenue that are accounted for under Topic 606 is discussed below. Delivery and pick-up: Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. Sales of rental equipment, new equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is probable. Service and other revenues primarily represent revenues earned from providing repair and maintenance services on our customers’ fleet (including parts sales). Service revenue is recognized as the services are performed. See note 3 to our consolidated financial statements for further discussion of our revenue accounting. Delivery Expense Equipment rentals include our revenues from fees we charge for equipment delivery. Delivery costs are charged to operations as incurred, and are included in cost of revenues on our consolidated statements of income. Advertising Expense We promote our business through local and national advertising in various media, including television, trade publications, branded sponsorships, yellow pages, the internet, radio and direct mail. Advertising costs are generally expensed as incurred. These costs may include the development costs for branded content and advertising campaigns. Advertising expense, net of the qualified advertising reimbursements discussed below, was immaterial for the years ended December 31, 2020, 2019 and 2018. We receive reimbursements for advertising that promotes a vendor’s products or services. Such reimbursements that meet the applicable criteria under U.S. generally accepted accounting principles (“GAAP”) are offset against advertising costs in the period in which we recognize the incremental advertising cost. The amounts of qualified advertising reimbursements that reduced advertising expense were $22, $49 and $41 for the years ended December 31, 2020, 2019 and 2018, respectively. Insurance We are insured for general liability, workers’ compensation and automobile liability, subject to deductibles or self-insured retentions per occurrence. Losses within the deductible amounts are accrued based upon the aggregate liability for reported claims incurred, as well as an estimated liability for claims incurred but not yet reported. These liabilities are not discounted. We are also self-insured for group medical claims but purchase “stop loss” insurance as protection against any one significant loss. Income Taxes We use the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities and are measured using the tax rates and laws that are expected to be in effect when the differences are expected to reverse. Recognition of deferred tax assets is limited to amounts considered by management to be more likely than not to be realized in future periods. The most significant positive evidence that we consider in the recognition of deferred tax assets is the expected reversal of cumulative deferred tax liabilities resulting from book versus tax depreciation of our rental equipment fleet that is well in excess of the deferred tax assets. We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return regarding uncertainties in income tax positions. The first step is recognition: we determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, we presume that the position will be examined by the appropriate taxing authority with full knowledge of all relevant information. The second step is measurement: a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset or an increase in a deferred tax liability. We have historically considered the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested, and, accordingly, no taxes were provided on such earnings prior to the fourth quarter of 2020. In the fourth quarter of 2020, we identified $135 of cash in our foreign operations in excess of near-term working capital needs, and determined that this amount could no longer be considered indefinitely reinvested. As a result, our prior assertion that all undistributed earnings of our foreign subsidiaries should be considered indefinitely reinvested has changed, and, in the fourth quarter of 2020, we recorded the immaterial taxes on a distribution of the $135 of cash. We continue to expect that the remaining balance of our undistributed foreign earnings will be indefinitely reinvested. If we determine that all or a portion of such foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. The Tax Cuts and Jobs Act (the "Tax Act") was enacted in December 2017, and required a one-time transition tax for deemed repatriation of accumulated undistributed earnings of certain foreign investments, which we primarily recognized upon adoption of the Tax Act in 2017. As discussed in note 14 to the consolidated financial statements, we completed our accounting for the tax effects of enactment of the Tax Act in 2018. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates impact the calculation of the allowance for doubtful accounts, depreciation and amortization, income taxes and reserves for claims. Actual results could materially differ from those estimates. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk include cash and cash equivalents and accounts receivable. We maintain cash and cash equivalents with high quality financial institutions. Concentration of credit risk with respect to receivables is limited because a large number of geographically diverse customers makes up our customer base (see note 3 to our consolidated financial statements for further detail). We manage credit risk through credit approvals, credit limits and other monitoring procedures. Stock-Based Compensation We measure stock-based compensation at the grant date based on the fair value of the award and recognize stock-based compensation expense over the requisite service period. Determining the fair value of stock option awards requires judgment, including estimating stock price volatility and expected option life. Restricted stock awards are valued based on the fair value of the stock on the grant date and the related compensation expense is recognized over the service period. Similarly, for time-based restricted stock awards subject to graded vesting, we recognize compensation cost on a straight-line basis over the requisite service period. For performance-based restricted stock units ("RSUs"), compensation expense is recognized if satisfaction of the performance condition is considered probable. We recognize forfeitures of stock-based compensation as they occur. New Accounting Pronouncements Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued guidance intended to simplify the accounting for income taxes. The guidance removes the following exceptions: 1) exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, 2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, 3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary and 4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Additionally, the guidance simplifies the accounting for income taxes by: 1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, 2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction, 3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements (although the entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority), 4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date and 5) making minor improvements for income tax accounting related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2020. Different components of the guidance require retrospective, modified retrospective or prospective adoption, and early adoption is permitted. We will adopt this guidance when it becomes effective, in the first quarter of 2021, and the impact on our financial statements is not expected to be material. Guidance Adopted in 2020 Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued guidance that requires companies to present certain financial assets net of the amount expected to be collected. Trade receivables (as noted below, excluding receivables arising from operating lease revenues) are the only material financial asset we have that is impacted by this guidance. The guidance requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectibility. This guidance does not apply to receivables arising from operating lease revenues. As discussed in note 3 to the consolidated financial statements, most of our equipment rental revenue is accounted for as lease revenue (such revenue represented 77 percent of our total revenues for the year ended December 31, 2020). We adopted this guidance in 2020, and the impact of adoption on our financial statements was not material. See note 3 (see "Receivables and contract assets and liabilities") for further discussion of our receivables. Facilitation of the Effects of Reference Rate Reform on Financial Reporting . In March 2020, the FASB issued guidance that provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. We adopted this guidance in 2020, and the impact of adoption on our financial statements was not material. The expedients and exceptions in this guidance are optional, and we are evaluating the potential future financial statement impact of any such expedient or exception that we may elect to apply. Simplifying the Test for Goodwill Impairment . In January 2017, the Financial Accounting Standards Board ("FASB") issued guidance intended to simplify the subsequent accounting for goodwill acquired in a business combination. Prior guidance required utilizing a two-step process to review goodwill for impairment. A second step was required if there was an indication that an impairment may exist, and the second step required calculating the potential impairment by comparing the implied fair value of the reporting unit's goodwill (as if purchase accounting were performed on the testing date) with the carrying amount of the goodwill. The new guidance eliminates the second step from the goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value (although the loss should not exceed the total amount of goodwill allocated to the reporting unit). The guidance requires prospective adoption. We adopted the guidance for the goodwill impairment test that we conducted as of October 1, 2020, and adoption of the guidance did not have a significant impact on our financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Recognition Accounting Standards In March 2016, the FASB issued updated lease accounting guidance ("Topic 842"), as explained further in note 13 to the consolidated financial statements. We adopted Topic 842 on January 1, 2019. Topic 842 is an update to Topic 840, which was the lease accounting standard in place through December 31, 2018. As reflected below, most of our revenue is accounted for under Topic 842 (Topic 840 for 2018). There were no significant changes to our revenue accounting upon adoption of Topic 842. We recognize revenue in accordance with two different accounting standards: 1) Topic 606 (which addresses revenue from contracts with customers) and 2) Topic 842 (which, as discussed above, addresses lease revenue). Under Topic 606, revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account under Topic 606. As reflected below, most of our revenue is accounted for under Topic 842. Our contracts with customers generally do not include multiple performance obligations. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services. Nature of goods and services In the following table, revenue is summarized by type and by the applicable accounting standard. Year Ended December 31, 2020 2019 2018 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Topic 840 Topic 606 Total Revenues: Owned equipment rentals $ 6,056 $ — $ 6,056 $ 6,777 $ — $ 6,777 $ 5,946 $ — $ 5,946 Re-rent revenue 142 — 142 155 — 155 138 — 138 Ancillary and other rental revenues: Delivery and pick-up — 506 506 — 564 564 — 477 477 Other 338 98 436 356 112 468 287 92 379 Total ancillary and other rental revenues 338 604 942 356 676 1,032 287 569 856 Total equipment rentals 6,536 604 7,140 7,288 676 7,964 6,371 569 6,940 Sales of rental equipment — 858 858 — 831 831 — 664 664 Sales of new equipment — 247 247 — 268 268 — 208 208 Contractor supplies sales — 98 98 — 104 104 — 91 91 Service and other revenues — 187 187 — 184 184 — 144 144 Total revenues $ 6,536 $ 1,994 $ 8,530 $ 7,288 $ 2,063 $ 9,351 $ 6,371 $ 1,676 $ 8,047 Revenues by reportable segment and geographical market are presented in note 4 of the consolidated financial statements using the revenue captions reflected in our consolidated statements of operations. The majority of our revenue is recognized in our general rentals segment and in the U.S. (for the year ended December 31, 2020, 79 percent and 91 percent of total revenues, respectively). We believe that the disaggregation of our revenue from contracts to customers as reflected above, coupled with the further discussion below and the reportable segment and geographical market disclosures in note 4, depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Lease revenues (Topic 842) The accounting for the types of revenue that are accounted for under Topic 842 is discussed below. Owned equipment rentals represent our most significant revenue type (they accounted for 71 percent of total revenues for the year ended December 31, 2020) and are governed by our standard rental contract. We account for such rentals as operating leases. The lease terms are included in our contracts, and the determination of whether our contracts contain leases generally does not require significant assumptions or judgments. Our lease revenues do not include material amounts of variable payments. Owned equipment rentals: Owned equipment rentals represent revenues from renting equipment that we own. We do not generally provide an option for the lessee to purchase the rented equipment at the end of the lease, and do not generate material revenue from sales of equipment under such options. We recognize revenues from renting equipment on a straight-line basis. Our rental contract periods are hourly, daily, weekly or monthly. By way of example, if a customer were to rent a piece of equipment and the daily, weekly and monthly rental rates for that particular piece were (in actual dollars) $100, $300 and $900, respectively, we would recognize revenue of $32.14 per day. The daily rate for recognition purposes is calculated by dividing the monthly rate of $900 by the monthly term of 28 days. This daily rate assumes that the equipment will be on rent for the full 28 days, as we are unsure of when the customer will return the equipment and therefore unsure of which rental contract period will apply. As part of this straight-line methodology, when the equipment is returned, we recognize as incremental revenue the excess, if any, between the amount the customer is contractually required to pay, which is based on the rental contract period applicable to the actual number of days the equipment was out on rent, over the cumulative amount of revenue recognized to date. In any given accounting period, we will have customers return equipment and be contractually required to pay us more than the cumulative amount of revenue recognized to date under the straight-line methodology. For instance, continuing the above example, if the customer rented the above piece of equipment on December 29 and returned it at the close of business on January 1, we would recognize incremental revenue on January 1 of $171.44 (in actual dollars, representing the difference between the amount the customer is contractually required to pay, or $300 at the weekly rate, and the cumulative amount recognized to date on a straight-line basis, or $128.56, which represents four days at $32.14 per day). We record amounts billed to customers in excess of recognizable revenue as deferred revenue on our balance sheet. We had deferred revenue (associated with both Topic 842 and Topic 606) of $51 and $55 as of December 31, 2020 and 2019, respectively. As noted above, we are unsure of when the customer will return rented equipment. As such, we do not know how much the customer will owe us upon return of the equipment and cannot provide a maturity analysis of future lease payments. Our equipment is generally rented for short periods of time (significantly less than a year). Lessees do not provide residual value guarantees on rented equipment. We expect to derive significant future benefits from our equipment following the end of the rental term. Our rentals are generally short-term in nature, and our equipment is typically rented for the majority of the time that we own it. We additionally recognize revenue from sales of rental equipment when we dispose of the equipment. Re-rent revenue: Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. “Other” equipment rental revenue is primarily comprised of 1) Rental Protection Plan (or "RPP") revenue associated with the damage waiver customers can purchase when they rent our equipment to protect against potential loss or damage, 2) environmental charges associated with the rental of equipment, and 3) charges for rented equipment that is damaged by our customers. Revenues from contracts with customers (Topic 606) The accounting for the types of revenue that are accounted for under Topic 606 is discussed below. Substantially all of our revenues under Topic 606 are recognized at a point-in-time rather than over time. Delivery and pick-up: Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. “Other” equipment rental revenue is primarily comprised of revenues associated with the consumption of fuel by our customers which are recognized when the equipment is returned by the customer (and consumption, if any, can be measured). Sales of rental equipment, new equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is probable. Service and other revenues primarily represent revenues earned from providing repair and maintenance services on our customers’ fleet (including parts sales). Service revenue is recognized as the services are performed. Receivables and contract assets and liabilities As reflected above, most of our equipment rental revenue is accounted for under Topic 842 (such revenue represented 77 percent of our total revenues for the year ended December 31, 2020). The customers that are responsible for the remaining revenue that is accounted for under Topic 606 are generally the same customers that rent our equipment. We manage credit risk associated with our accounts receivables at the customer level. Because the same customers generate the revenues that are accounted for under both Topic 606 and Topic 842, the discussions below on credit risk and our allowances for doubtful accounts address receivables arising from revenues from both Topic 606 and Topic 842 (Topic 840 for 2018). Concentration of credit risk with respect to our receivables is limited because a large number of geographically diverse customers makes up our customer base. Our largest customer accounted for less than one percent of total revenues in each of 2020, 2019, and 2018. Our customer with the largest receivable balance represented approximately two percent and one percent of total receivables at December 31, 2020 and 2019, respectively. We manage credit risk through credit approvals, credit limits and other monitoring procedures. Our allowances for doubtful accounts reflect our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectibility. Our estimate could require change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowances. Trade receivables that have contractual maturities of one year or less are written-off when they are determined to be uncollectible based on the criteria necessary to qualify as a deduction for federal tax purposes. Write-offs of such receivables require management approval based on specified dollar thresholds. See the table below for a rollforward of our allowance for doubtful accounts. In 2020, we adopted accounting guidance that requires companies to present certain financial assets net of the amount expected to be collected. This guidance requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectibility. Our allowance for doubtful accounts as of December 31, 2020 included an adjustment for the estimated impact of COVID-19 on future collectibility that was not material to our financial statements. Trade receivables are the only material financial asset we have that is impacted by this guidance, which does not apply to receivables arising from operating lease revenues. Substantially all of our non-lease trade receivables are due in one year or less. As discussed above, most of our equipment rental revenue is accounted for as lease revenue (such revenue represented 77 percent of our total revenues for the year ended December 31, 2020), and these revenues account for corresponding portions of the $1.315 billion of net accounts receivable and the associated allowance for doubtful accounts of $108 reported on our consolidated balance sheet as of December 31, 2020). During the year ended December 31, 2020, we recognized total bad debt expenses for our non-lease trade receivables, within selling, general and administrative expenses on our consolidated statement of income, of $9 associated with our allowance for doubtful accounts. Adoption of this guidance did not materially impact 1) net accounts receivable or the associated allowance for doubtful accounts as reported on our consolidated balance sheet as of December 31, 2020 or 2) total bad debt expenses recognized associated with our allowance for doubtful accounts for the year ended December 31, 2020. As discussed above, most of our equipment rental revenue is accounted for under Topic 842. The customers that are responsible for the remaining revenue that is accounted for under Topic 606 are generally the same customers that rent our equipment. We manage credit risk associated with our accounts receivables at the customer level. The rollforward of our allowance for doubtful accounts (in total, and associated with revenues arising from both Topic 606 and Topic 842/840) is shown below. Year ended December 31, 2020 2019 2018 Beginning balance $ 103 $ 93 $ 68 Acquired — 2 14 Charged to costs and expenses (1) 9 8 45 Charged to revenue (2) 25 34 — Deductions (3) (29) (34) (34) Ending balance $ 108 $ 103 $ 93 _________________ (1) Reflects bad debt expenses recognized within selling, general and administrative expenses (associated with Topic 606 revenues). (2) Primarily reflects doubtful accounts associated with lease revenues that were recognized as a reduction to equipment rentals revenue (primarily associated with Topic 842 revenues). We adopted Topic 842 in 2019 using a transition method that does not require application to periods prior to adoption. (3) Represents write-offs of accounts, net of immaterial recoveries. We do not have material contract assets, or impairment losses associated therewith, or material contract liabilities, associated with contracts with customers. Our contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. We did not recognize material revenue during the years ended December 31, 2020 and December 31, 2019 that was included in the contract liability balance as of the beginning of such periods. Performance obligations Most of our Topic 606 revenue is recognized at a point-in-time, rather than over time. Accordingly, in any particular period, we do not generally recognize a significant amount of revenue from performance obligations satisfied (or partially satisfied) in previous periods, and the amounts of such revenue recognized during the years ended December 31, 2020 and December 31, 2019 were not material. We also do not expect to recognize material revenue in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of December 31, 2020. Payment terms Our Topic 606 revenues do not include material amounts of variable consideration. Our payment terms vary by the type and location of our customer and the products or services offered. The time between invoicing and when payment is due is not significant. Our contracts do not generally include a significant financing component. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. See above for a discussion of how we manage credit risk. Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities. Contract costs We do not recognize any assets associated with the incremental costs of obtaining a contract with a customer (for example, a sales commission) that we expect to recover. Most of our revenue is recognized at a point-in-time or over a period of one year or less, and we use the practical expedient that allows us to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. Contract estimates and judgments Our revenues accounted for under Topic 606 generally do not require significant estimates or judgments, primarily for the following reasons: • The transaction price is generally fixed and stated in our contracts; • As noted above, our contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation; • Our revenues do not include material amounts of variable consideration, or result in significant obligations associated with returns, refunds or warranties; and • Most of our revenue is recognized as of a point-in-time and the timing of the satisfaction of the applicable performance obligations is readily determinable. As noted above, our Topic 606 revenue is generally recognized at the time of delivery to, or pick-up by, the customer. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments are i) general rentals and ii) trench, power and fluid solutions. Our regions discussed below, which are our operating segments, are aggregated into our reportable segments. We believe that the regions that are aggregated into our reportable segments have similar economic characteristics, as each region is capital intensive, offers similar products to similar customers, uses similar methods to distribute its products, and is subject to similar competitive risks. The aggregation of our regions also reflects the management structure that we use for making operating decisions and assessing performance. We evaluate segment performance primarily based on segment equipment rentals gross profit. The general rentals segment includes the rental of i) general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, ii) aerial work platforms, such as boom lifts and scissor lifts and iii) general tools and light equipment, such as pressure washers, water pumps and power tools. The general rentals segment reflects the aggregation of 11 geographic regions—Carolinas, Gulf South, Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Mid Central, Midwest, Northeast, Pacific West, South, Southeast and Western Canada—and operates throughout the United States and Canada. The trench, power and fluid solutions segment includes the rental of specialty construction products such as i) trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, ii) power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment and iii) fluid solutions equipment primarily used for fluid containment, transfer and treatment. The trench, power and fluid solutions segment is comprised of the following regions, each of which primarily rents the corresponding equipment type described above: i) the Trench Safety region, ii) the Power and HVAC region, iii) the Fluid Solutions region and iv) the Fluid Solutions Europe region. The trench, power and fluid solutions segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment operates throughout the United States and in Canada and Europe. The following table presents the percentage of equipment rental revenue by equipment type for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 Primarily rented by our general rentals segment: General construction and industrial equipment 43 % 43 % 44 % Aerial work platforms 27 % 28 % 28 % General tools and light equipment 8 % 8 % 8 % Primarily rented by our trench, power and fluid solutions segment: Power and HVAC equipment 9 % 8 % 8 % Trench safety equipment 6 % 6 % 6 % Fluid solutions equipment 7 % 7 % 6 % The accounting policies for our segments are the same as those described in the summary of significant accounting policies in note 2. Certain corporate costs, including those related to selling, finance, legal, risk management, human resources, corporate management and information technology systems, are deemed to be of an operating nature and are allocated to our segments based primarily on rental fleet size. The following table sets forth financial information by segment as of and for the years ended December 31, 2020, 2019 and 2018: General Trench, Total 2020 Equipment rentals $ 5,472 $ 1,668 $ 7,140 Sales of rental equipment 785 73 858 Sales of new equipment 214 33 247 Contractor supplies sales 64 34 98 Service and other revenues 164 23 187 Total revenue 6,699 1,831 8,530 Depreciation and amortization expense 1,633 355 1,988 Equipment rentals gross profit 1,954 765 2,719 Capital expenditures 969 189 1,158 Total assets $ 15,051 $ 2,817 $ 17,868 2019 Equipment rentals $ 6,202 $ 1,762 $ 7,964 Sales of rental equipment 768 63 831 Sales of new equipment 238 30 268 Contractor supplies sales 71 33 104 Service and other revenues 157 27 184 Total revenue 7,436 1,915 9,351 Depreciation and amortization expense 1,681 357 2,038 Equipment rentals gross profit 2,407 800 3,207 Capital expenditures 1,967 383 2,350 Total assets $ 16,036 $ 2,934 $ 18,970 2018 Equipment rentals $ 5,550 $ 1,390 $ 6,940 Sales of rental equipment 619 45 664 Sales of new equipment 186 22 208 Contractor supplies sales 68 23 91 Service and other revenues 127 17 144 Total revenue 6,550 1,497 8,047 Depreciation and amortization expense 1,410 261 1,671 Equipment rentals gross profit 2,293 670 2,963 Capital expenditures 1,980 311 2,291 Total assets $ 15,597 $ 2,536 $ 18,133 Equipment rentals gross profit is the primary measure management reviews to make operating decisions and assess segment performance. The following is a reconciliation of equipment rentals gross profit to income before provision for income taxes: Year Ended December 31, 2020 2019 2018 Total equipment rentals gross profit $ 2,719 $ 3,207 $ 2,963 Gross profit from other lines of business 464 463 401 Selling, general and administrative expenses (979) (1,092) (1,038) Merger related costs — (1) (36) Restructuring charge (17) (18) (31) Non-rental depreciation and amortization (387) (407) (308) Interest expense, net (669) (648) (481) Other income, net 8 10 6 Income before provision for income taxes $ 1,139 $ 1,514 $ 1,476 We operate in the United States, Canada and Europe. In July 2018, we completed the acquisition of BakerCorp, which allowed for our entry into select European markets. Our presence in Europe is limited, and the foreign information in the table below primarily reflects Canada. The following table presents geographic area information for the years ended December 31, 2020, 2019 and 2018, except for balance sheet information, which is presented as of December 31, 2020 and 2019: Domestic Foreign Total 2020 Equipment rentals $ 6,543 $ 597 $ 7,140 Sales of rental equipment 784 74 858 Sales of new equipment 218 29 247 Contractor supplies sales 86 12 98 Service and other revenues 166 21 187 Total revenue 7,797 733 8,530 Rental equipment, net 7,960 745 8,705 Property and equipment, net 558 46 604 Goodwill and other intangible assets, net $ 5,361 $ 455 $ 5,816 2019 Equipment rentals $ 7,283 $ 681 $ 7,964 Sales of rental equipment 757 74 831 Sales of new equipment 238 30 268 Contractor supplies sales 92 12 104 Service and other revenues 164 20 184 Total revenue 8,534 817 9,351 Rental equipment, net 8,995 792 9,787 Property and equipment, net 554 50 604 Goodwill and other intangible assets, net $ 5,592 $ 457 $ 6,049 2018 Equipment rentals $ 6,388 $ 552 $ 6,940 Sales of rental equipment 609 55 664 Sales of new equipment 184 24 208 Contractor supplies sales 80 11 91 Service and other revenues 126 18 144 Total revenue $ 7,387 $ 660 $ 8,047 |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges Restructuring charges primarily include severance costs associated with headcount reductions, as well as branch closure charges. We incur severance costs and branch closure charges in the ordinary course of our business. We only include such costs that are part of a restructuring program as restructuring charges. Since the first such program was initiated in 2008, we have completed five restructuring programs and have incurred total restructuring charges of $350. Closed Restructuring Programs Our closed restructuring programs were initiated either in recognition of a challenging economic environment or following the completion of certain significant acquisitions. As of December 31, 2020, the total liability associated with the closed restructuring programs was $14. As of December 31, 2020, we have incurred total restructuring charges under the closed restructuring programs of $334, comprised of $193 of branch closure charges and $141 of severance and other costs. 2020-2021 Cost Savings Restructuring Program In the fourth quarter of 2019, we initiated a restructuring program associated with the consolidation of certain common functions, the relocation of our shared-service facilities and certain other cost reduction measures. We expect to complete the restructuring program in the first half of 2021. The total costs expected to be incurred in connection with the program are not currently estimable, as we are still identifying the actions that will be undertaken. The table below provides certain information concerning our restructuring charges under the 2020-2021 Cost Savings restructuring program: Description Beginning Charged to Payments Ending Year Ended December 31, 2020: Branch closure charges $ — $ 7 $ (4) $ 3 Severance and other — 8 (6) 2 Total $ — $ 15 $ (10) $ 5 ________________ (1) Reflected in our consolidated statements of income as “Restructuring charge” (such charge also includes activity under our other restructuring programs). The restructuring charges are not allocated to our segments. As of December 31, 2020, we have incurred total restructuring charges under the 2020-2021 Cost Savings restructuring program of $16, comprised of $8 of branch closure charges and $8 of severance and other costs. Asset Impairment Charges In addition to the restructuring charges discussed above, during the year ended December 31, 2020, we recorded asset impairment charges of $36 primarily in our general rentals segment. The asset impairment charges, which were not related to COVID-19, are primarily reflected in depreciation of rental equipment in our consolidated statements of income and principally relate to the discontinuation of certain equipment programs. There were no material asset impairment charges during the years ended December 31, 2019 and 2018. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Assets | Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: December 31, 2020 2019 Equipment (1) $ 300 $ — Insurance 18 12 Advertising reimbursements (2) 11 27 Income taxes 4 51 Other (3) 42 50 Prepaid expenses and other assets $ 375 $ 140 _________________ (1) Reflects refundable deposits on expected rental equipment purchases pursuant to advanced purchase agreements. Such deposits are presented as a component of our cash flows from operations. We expect to purchase and receive the equipment in 2021. (2) Reflects reimbursements due for advertising that promotes a vendor’s products or services. See note 2 ("Advertising Expense") for further detail. |
Rental Equipment
Rental Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Rental Equipment | Rental Equipment Rental equipment consists of the following: December 31, 2020 2019 Rental equipment $ 14,216 $ 14,852 Less accumulated depreciation (5,511) (5,065) Rental equipment, net (1) $ 8,705 $ 9,787 _________________ (1) As discussed above, disciplined management of capital expenditures and fleet capacity is a component of our COVID-19 response plan, which contributed to the year-over-year decrease in net rental equipment. Property and equipment consist of the following: December 31, 2020 2019 Land $ 111 $ 101 Buildings 215 210 Non-rental vehicles 168 168 Machinery and equipment 164 157 Furniture and fixtures 338 328 Leasehold improvements 396 348 1,392 1,312 Less accumulated depreciation and amortization (788) (708) Property and equipment, net $ 604 $ 604 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Rental Equipment Rental equipment consists of the following: December 31, 2020 2019 Rental equipment $ 14,216 $ 14,852 Less accumulated depreciation (5,511) (5,065) Rental equipment, net (1) $ 8,705 $ 9,787 _________________ (1) As discussed above, disciplined management of capital expenditures and fleet capacity is a component of our COVID-19 response plan, which contributed to the year-over-year decrease in net rental equipment. Property and equipment consist of the following: December 31, 2020 2019 Land $ 111 $ 101 Buildings 215 210 Non-rental vehicles 168 168 Machinery and equipment 164 157 Furniture and fixtures 338 328 Leasehold improvements 396 348 1,392 1,312 Less accumulated depreciation and amortization (788) (708) Property and equipment, net $ 604 $ 604 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table presents the changes in the carrying amount of goodwill for each of the three years in the period ended December 31, 2020: General rentals Trench, Total Balance at January 1, 2018 (1) $ 3,607 $ 475 $ 4,082 Goodwill related to acquisitions (2) (3) 752 247 999 Foreign currency translation and other adjustments (17) (6) (23) Balance at December 31, 2018 (1) 4,342 716 5,058 Goodwill related to acquisitions (2) 10 73 83 Foreign currency translation and other adjustments 10 3 13 Balance at December 31, 2019 (1) 4,362 792 5,154 Goodwill related to acquisitions (2) 1 (3) (2) Foreign currency translation and other adjustments 5 11 16 Balance at December 31, 2020 (1) $ 4,368 $ 800 $ 5,168 _________________ (1) The total carrying amount of goodwill for all periods in the table above is reflected net of $1.557 billion of accumulated impairment charges, which were primarily recorded in our general rentals segment. (2) Includes goodwill adjustments for the effect on goodwill of changes to net assets acquired during the measurement period, which were not significant to our previously reported operating results or financial condition. (3) The acquisitions of BakerCorp and BlueLine in July 2018 and October 2018, respectively, accounted for most of the 2018 goodwill related to acquisitions. Other intangible assets were comprised of the following at December 31, 2020 and 2019: December 31, 2020 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 35 months $ 12 $ 6 $ 6 Customer relationships 6 years $ 2,252 $ 1,614 $ 638 Trade names and associated trademarks 4 years $ 8 $ 4 $ 4 December 31, 2019 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 43 months $ 24 $ 14 $ 10 Customer relationships 7 years $ 2,246 $ 1,364 $ 882 Trade names and associated trademarks 4 years $ 5 $ 2 $ 3 Amortization expense for other intangible assets was $250, $290 and $213 for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, estimated amortization expense for other intangible assets for each of the next five years and thereafter was as follows: 2021 $ 206 2022 161 2023 117 2024 75 2025 50 Thereafter 39 Total $ 648 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities | Accrued Expenses and Other Liabilities and Other Long-Term Liabilities Accrued expenses and other liabilities consist of the following: December 31, 2020 2019 Self-insurance accruals $ 54 $ 59 Accrued compensation and benefit costs 79 86 Property and income taxes payable 45 26 Restructuring reserves (1) 19 20 Interest payable 133 142 Deferred revenue (2) 51 55 National accounts accrual 84 87 Operating lease liability 178 178 Other (3) 77 94 Accrued expenses and other liabilities $ 720 $ 747 _________________ (1) Primarily relates to branch closure charges and severance costs. See note 5 for additional detail. (2) Reflects amounts billed to customers in excess of recognizable revenue. See note 3 for additional detail. (3) Other includes multiple items, none of which are individually significant. Other long-term liabilities consist of the following: December 31, 2020 2019 Self-insurance accruals $ 73 $ 62 Income taxes payable 5 14 Accrued compensation and benefit costs 60 15 Other long-term liabilities $ 138 $ 91 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of December 31, 2020 and 2019, the amounts of our assets and liabilities that were accounted for at fair value were immaterial. Fair value measurements are categorized in one of the following three levels based on the lowest level input that is significant to the fair value measurement in its entirety: Level 1—Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices in active markets for identical assets or liabilities include: a) quoted prices for similar assets or liabilities in active markets; b) quoted prices for identical or similar assets or liabilities in inactive markets; c) inputs other than quoted prices that are observable for the asset or liability; d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3—Inputs to the valuation methodology are unobservable (i.e., supported by little or no market activity) and significant to the fair value measure. Fair Value of Financial Instruments The carrying amounts reported in our consolidated balance sheets for accounts receivable, accounts payable and accrued expenses and other liabilities approximate fair value due to the immediate to short-term maturity of these financial instruments. The fair values of our ABL, accounts receivable securitization and term loan facilities and finance leases approximated their book values as of December 31, 2020 and 2019. The estimated fair values of our other financial instruments, all of which are categorized in Level 1 of the fair value hierarchy, as of December 31, 2020 and 2019 have been calculated based upon available market information, and were as follows: December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Senior notes $ 6,965 $ 7,470 $ 7,755 $ 8,176 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt, net of unamortized original issue premiums and unamortized debt issuance costs, consists of the following: December 31, 2020 2019 Accounts receivable securitization facility expiring 2021 (1) $ 634 $ 929 $3.75 billion ABL facility expiring 2024 (1) (2) 977 1,638 Term loan facility expiring 2025 (1) 971 979 5 1 / 2 percent Senior Notes due 2025 (3) — 795 4 5 / 8 percent Senior Notes due 2025 (3) — 742 5 7 / 8 percent Senior Notes due 2026 999 999 6 1 / 2 percent Senior Notes due 2026 (3) — 1,089 5 1 / 2 percent Senior Notes due 2027 994 992 3 7 / 8 percent Senior Secured Notes due 2027 742 741 4 7 / 8 percent Senior Notes due 2028 (4) 1,654 1,652 4 7 / 8 percent Senior Notes due 2028 (4) 4 4 5 1 / 4 percent Senior Notes due 2030 742 741 4 percent Senior Notes due 2030 (5) 742 — 3 7 / 8 percent Senior Notes due 2031 (6) 1,088 — Finance leases 135 127 Total debt 9,682 11,428 Less short-term portion (704) (997) Total long-term debt $ 8,978 $ 10,431 (1) The table below presents financial information associated with our variable rate indebtedness as of and for the year ended December 31, 2020. We have borrowed the full available amount under the term loan facility. The principal obligation under the term loan facility is required to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent per annum, with the balance due at the maturity of the facility. The average amount of debt outstanding under the term loan facility decreases slightly each quarter due to the requirement to repay a portion of the principal obligation. ABL facility Accounts receivable securitization facility Term loan facility Borrowing capacity, net of letters of credit $ 2,705 $ 166 $ — Letters of credit 60 Interest rate at December 31, 2020 1.4 % 1.5 % 1.9 % Average month-end debt outstanding 794 667 983 Weighted-average interest rate on average debt outstanding 1.9 % 1.8 % 2.2 % Maximum month-end debt outstanding 1,494 811 988 (2) The decrease in the outstanding debt under the ABL facility since December 31, 2019 primarily reflects the use of proceeds from operations to reduce borrowings under the ABL facility. As discussed above, disciplined management of capital expenditures and fleet capacity is a component of our COVID-19 response plan, and, in 2020, capital expenditures decreased significantly year-over-year. The decreased capital expenditures contributed to our ability to use proceeds from operations to reduce borrowings under the ABL facility. (3) URNA redeemed all of its 5 1 / 2 percent Senior Notes due 2025 and 6 1 / 2 percent Senior Notes due 2026 in August 2020, and redeemed all of its 4 5 / 8 percent Senior Notes due 2025 in October 2020. During the year ended December 31, 2020, we recognized an aggregate debt redemption loss, in interest expense, net in our consolidated statement of income, of $183 (comprised of $27, $132 and $24 for the 5 1 / 2 percent Senior Notes due 2025, 6 1 / 2 percent Senior Notes due 2026 and 4 5 / 8 percent Senior Notes due 2025, respectively). The loss reflects the difference between the net carrying amount and the total purchase price of the redeemed notes. Prior to redeeming the notes, we considered the impact of COVID-19 on liquidity, and assessed our available sources and anticipated uses of cash, including, with respect to sources, cash generated from operations and from the sale of rental equipment. (4) URNA separately issued 4 7 / 8 percent Senior Notes in August 2017 and in September 2017. Following the issuances, we consummated an exchange offer pursuant to which most of the 4 7 / 8 percent Senior Notes issued in September 2017 were exchanged for additional notes fungible with the 4 7 / 8 percent Senior Notes issued in August 2017. (5) In February 2020, URNA issued $750 aggregate principal amount of 4 percent Notes due 2030. See below for additional detail on the issued debt. (6) In August 2020, URNA issued $1.100 billion aggregate principal amount of 3 7 / 8 percent Senior Notes due 2031. See below for additional detail on the issued debt. Short-term debt As of December 31, 2020, our short-term debt primarily reflects $634 of borrowings under our accounts receivable securitization facility. Accounts receivable securitization facility . In 2020, the accounts receivable securitization facility was amended, primarily to (a) extend the maturity date, (b) reduce the size of the facility and (c) adjust the financial tests (including the method of calculation) relating to (i) the default ratio, (ii) the delinquency ratio, (iii) the dilution ratio and (iv) days sales outstanding. The amended facility expires on June 25, 2021, has a facility size of $800, and may be extended on a 364-day basis by mutual agreement of the Company and the lenders under the facility. Borrowings under the facility are reflected as short-term debt on our consolidated balance sheets. Key provisions of the facility include the following: • borrowings 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 by a specified amount. As of December 31, 2020, there were $922 of receivables, net of applicable reserves, in the collateral pool; • the receivables in the collateral pool are the lenders’ only source of repayment; • upon early termination of the facility, no new amounts will be advanced under the facility and collections on the receivables securing the facility will be used to repay the outstanding borrowings; and • standard termination events including, without limitation, a change of control of Holdings, URNA or certain of its subsidiaries, a failure to make payments, a failure to comply with standard default, delinquency, dilution and days sales outstanding covenants, or breach of the fixed charge coverage ratio covenant under the ABL facility (if applicable). See the table above for financial information associated with the accounts receivable securitization facility. Long-term debt ABL facility. In June 2008, Holdings, URNA, and certain of our subsidiaries entered into a credit agreement providing for a five-year $1.25 billion ABL facility, a portion of which is available for borrowing in Canadian dollars. The ABL facility was subsequently upsized and extended, and a portion of the facility is also now available for borrowing in British Pounds and Euros by certain subsidiaries of URNA in Europe. The size of the ABL facility was $3.75 billion as of December 31, 2020. See the table above for financial information associated with the ABL facility. The ABL facility is subject to, among other things, the terms of a borrowing base derived from the value of eligible rental equipment and eligible inventory. The borrowing base is subject to certain reserves and caps customary for financings of this type. All amounts borrowed under the credit agreement must be repaid on or before February 2024. Loans under the credit agreement bear interest, at URNA’s option: (i) in the case of loans in U.S. dollars, at a rate equal to the London interbank offered rate or an alternate base rate, in each case plus a spread, (ii) in the case of loans in Canadian dollars, at a rate equal to the Canadian prime rate or an alternate rate (Bankers' Acceptance Rate), in each case plus a spread, (iii) in the case of loans in Euros, at a rate equal to the London interbank offered rate or an alternate base rate, in each case plus a spread, or (iv) in the case of loans in British pounds, at a rate equal to the London interbank offered rate or an alternate base rate, in each case plus a spread. The interest rates under the credit agreement are subject to change based on the availability in the facility. A commitment fee accrues on any unused portion of the commitments under the credit agreement at a fixed rate per annum. Ongoing extensions of credit under the credit agreement are subject to customary conditions, including sufficient availability under the borrowing base. As discussed below (see “Loan Covenants and Compliance”), the only financial covenant that currently exists in the ABL facility is the fixed charge coverage ratio. As of December 31, 2020, availability under the ABL facility has exceeded the required threshold and, as a result, this financial covenant was inapplicable. In addition, the credit agreement contains customary negative covenants applicable to Holdings, URNA and our subsidiaries, including negative covenants that restrict the ability of such entities to, among other things, (i) incur additional indebtedness or engage in certain other types of financing transactions, (ii) allow certain liens to attach to assets, (iii) repurchase, or pay dividends or make certain other restricted payments on, capital stock and certain other securities, (iv) prepay certain indebtedness and (v) make acquisitions and investments. The U.S. dollar borrowings under the credit agreement are secured by substantially all of our assets and substantially all of the assets of certain of our U.S. subsidiaries (other than real property and certain accounts receivable). The U.S. dollar borrowings under the credit agreement are guaranteed by Holdings and by URNA and, subject to certain exceptions, our domestic subsidiaries. Borrowings under the credit agreement by URNA’s Canadian subsidiaries are also secured by substantially all the assets of URNA’s Canadian subsidiaries and supported by guarantees from the Canadian subsidiaries and from Holdings and URNA, and, subject to certain exceptions, our domestic subsidiaries. Borrowings under the credit agreement by URNA’s subsidiaries in Europe and Puerto Rico are guaranteed by Holdings, URNA, URNA’s Canadian subsidiaries and, subject to certain exceptions, our domestic subsidiaries and secured by substantially all the assets of our U.S. subsidiaries (other than real property and certain accounts receivable) and substantially all the assets of URNA’s Canadian subsidiaries. Under the ABL facility, a change of control (as defined in the credit agreement) constitutes an event of default, entitling our lenders, among other things, to terminate our ABL facility and to require us to repay outstanding borrowings. Term loan facility . In October 2018, Holdings, URNA, and certain of our subsidiaries entered into a $1 billion senior secured term loan facility. See the table above for financial information associated with the term loan facility. The term loan facility is guaranteed by Holdings and the same domestic subsidiaries that guarantee the U.S. dollar borrowings under the ABL facility. In addition, the obligations under the term loan facility are secured by first priority security interests in the same collateral that secures the U.S. dollar borrowings under the ABL facility, on a pari passu basis with the ABL facility. The principal obligations under the term loan facility are to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent per annum, with the balance due at the maturity of the term loan facility. The term loan facility matures on October 31, 2025. Amounts drawn under the term loan facility bear annual interest, at URNA’s option, at either the London interbank offered rate plus a margin of 1.75 percent or at an alternative base rate plus a margin of 0.75 percent. The term loan facility contains customary negative covenants applicable to URNA and its subsidiaries, including negative covenants that restrict the ability of such entities to, among other things, (i) incur additional indebtedness; (ii) incur additional liens; (iii) make dividends and other restricted payments; and (iv) engage in mergers, acquisitions and dispositions. The term loan facility does not include any financial covenants. Under the term loan facility, a change of control (as defined in the credit agreement) constitutes an event of default, entitling our lenders to, among other things, terminate the term loan facility and require us to repay outstanding loans. 5 7 / 8 percent Senior Notes due 2026. 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. In February 2017, URNA issued $250 aggregate principal amount of 5 7 / 8 percent Notes as an add-on to the existing 5 7 / 8 percent Notes, after which the aggregate principal amount of outstanding 5 7 / 8 percent Notes was $1.0 billion. The notes issued in February 2017 have identical terms, and are fungible, with the existing 5 7 / 8 percent Notes. The net proceeds from the issuances were approximately $999 (including the original issue premium and 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. The carrying value of the 5 7 / 8 percent Notes includes the $8 unamortized portion of the original issue premium recognized in conjunction with the February 2017 issuance, which is being amortized through the maturity date in 2026. The effective interest rate on the 5 7 / 8 percent Notes is 5.7 percent. 5 1 / 2 percent Senior Notes due 2027. In November 2016, URNA issued $750 aggregate principal amount of 5 1 / 2 percent Senior Notes which are due May 15, 2027 (the “2027 5 1 / 2 percent Notes”). In February 2017, URNA issued $250 aggregate principal amount of 2027 5 1 / 2 percent Notes as an add-on to the existing 2027 5 1 / 2 percent Notes, after which the aggregate principal amount of outstanding 2027 5 1 / 2 percent Notes was $1.0 billion. The notes issued in February 2017 have identical terms, and are fungible, with the existing 2027 5 1 / 2 percent Notes. The net proceeds from the issuances were approximately $991 (including the original issue premium and after deducting offering expenses). The 2027 5 1 / 2 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 2027 5 1 / 2 percent Notes may be redeemed on or after May 15, 2022, at specified redemption prices that range from 102.75 percent in 2022, to 100 percent in 2025 and thereafter, plus accrued and unpaid interest, if any. The indenture governing the 2027 5 1 / 2 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 2027 5 1 / 2 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. The carrying value of the 2027 5 1 / 2 percent Notes includes the $2 unamortized portion of the original issue premium recognized in conjunction with the February 2017 issuance, which is being amortized through the maturity date in 2027. The effective interest rate on the 2027 5 1 / 2 percent Notes is 5.5 percent. 3 7 / 8 percent Senior Secured Notes due 2027. In November 2019, URNA issued $750 aggregate principal amount of 3 7 / 8 percent Senior Secured Notes (the “3 7 / 8 percent Notes”) which are due November 15, 2027. The net proceeds from the issuance were approximately $741 (after deducting offering expenses). The 3 7 / 8 percent Notes are guaranteed by Holdings and certain domestic subsidiaries of URNA and are secured on a second-priority basis by liens on substantially all of URNA’s and the guarantors’ assets that secure the ABL facility and the term loan facility, subject to certain exceptions. The 3 7 / 8 percent Notes may be redeemed on or after November 15, 2022, at specified redemption prices that range from 101.938 percent in 2022, to 100 percent in 2025 and thereafter, in each case, plus accrued and unpaid interest, if any. In addition, at any time on or prior to November 15, 2022, up to 40 percent of the aggregate principal amount of the 3 7 / 8 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 103.875 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 3 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens and (ii) mergers and consolidations, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the requirements to provide subsidiary guarantees, to give further assurances and to make an offer to repurchase the notes upon the occurrence of a change of control will not apply to URNA and its restricted subsidiaries during any period when the 3 7 / 8 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 3 7 / 8 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. 4 7 / 8 percent Senior Notes due 2028 . In August 2017, URNA issued $925 principal amount of 4 7 / 8 percent Senior Notes (the “Initial 4 7 / 8 percent Notes”) which are due January 15, 2028. The net proceeds from the issuance were approximately $913 (after deducting offering expenses). The Initial 4 7 / 8 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The Initial 4 7 / 8 percent Notes may be redeemed on or after January 15, 2023, at specified redemption prices that range from 102.438 percent in 2023, to 100 percent in 2026 and thereafter, in each case, plus accrued and unpaid interest, if any. The indenture governing the Initial 4 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) mergers and consolidations; (iii) sales, transfers and other dispositions of assets; (iv) dividends and other distributions, stock repurchases and redemptions and other restricted payments; and (v) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the covenant relating to dividends and other distributions, stock repurchases and redemptions and other restricted payments and the requirements relating to additional subsidiary guarantors will not apply to URNA and its restricted subsidiaries during any period when the Initial 4 7 / 8 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding Initial 4 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. In September 2017, URNA issued $750 principal amount of 4 7 / 8 percent Senior Notes (the “Subsequent 4 7 / 8 percent Notes”) which are due January 15, 2028. The net proceeds from the issuance were approximately $743 (including the original issue premium and after deducting offering expenses). The Subsequent 4 7 / 8 percent Notes represent a separate a distinct series of notes from the Initial 4 7 / 8 percent Notes. The Subsequent 4 7 / 8 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The Subsequent 4 7 / 8 percent Notes may be redeemed on or after January 15, 2023, at specified redemption prices that range from 102.438 percent in 2023, to 100 percent in 2026 and thereafter, in each case, plus accrued and unpaid interest, if any. The indenture governing the Subsequent 4 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) mergers and consolidations; (iii) sales, transfers and other dispositions of assets; (iv) dividends and other distributions, stock repurchases and redemptions and other restricted payments; and (v) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the covenant relating to dividends and other distributions, stock repurchases and redemptions and other restricted payments and the requirements relating to additional subsidiary guarantors will not apply to URNA and its restricted subsidiaries during any period when the Subsequent 4 7 / 8 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding Subsequent 4 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. The effective interest rate on the Subsequent 4 7 / 8 percent Notes is 4.84 percent. In December 2017, we consummated an exchange offer pursuant to which approximately $744 principal amount of Subsequent 4 7 / 8 percent Notes were exchanged for additional Initial 4 7 / 8 percent Notes issued under the indenture governing the Initial 4 7 / 8 percent Notes and fungible with the Initial 4 7 / 8 percent Notes. As of December 31, 2020, the principal amounts outstanding were $1.669 billion for the Initial 4 7 / 8 percent Notes and $4 for the Subsequent 4 7 / 8 percent Notes. The carrying value of the Initial 4 7 / 8 percent Notes includes $1 of the unamortized original issue premium, which is being amortized through the maturity date in 2028. The effective interest rate on the Initial 4 7 / 8 percent Notes is 4.86 percent. 5 1 / 4 percent Senior Notes due 2030. In May 2019, URNA issued $750 aggregate principal amount of 5 1 / 4 percent Senior Notes (the “5 1 / 4 percent Notes”) which are due January 15, 2030. The net proceeds from the issuance were approximately $741 (after deducting offering expenses). The 5 1 / 4 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 5 1 / 4 percent Notes may be redeemed on or after January 15, 2025, at specified redemption prices that range from 102.625 percent in 2025, to 100 percent in 2028 and thereafter, in each case, plus accrued and unpaid interest, if any. In addition, at any time on or prior to January 15, 2023, up to 40 percent of the aggregate principal amount of the 5 1 / 4 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 105.250 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 5 1 / 4 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) mergers and consolidations; and (iii) dividends and other distributions, stock repurchases and redemptions and other restricted payments, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the covenant relating to dividends and other distributions, stock repurchases and redemptions and other restricted payments and the requirements relating to additional subsidiary guarantors will not apply to URNA and its restricted subsidiaries during any period when the 5 1 / 4 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 5 1 / 4 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. 4 percent Senior Notes due 2030. In February 2020, URNA issued $750 aggregate principal amount of 4 percent Notes which are due July 15, 2030. The net proceeds from the issuance were approximately $741 (after deducting offering expenses). The 4 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 4 percent Notes may be redeemed on or after July 15, 2025, at specified redemption prices that range from 102.000 percent in 2025, to 100 percent in 2028 and thereafter, in each case, plus accrued and unpaid interest, if any. In addition, at any time on or prior to July 15, 2023, up to 40 percent of the aggregate principal amount of the 4 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 104.000 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 4 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens and (ii) mergers and consolidations, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the requirements to provide subsidiary guarantees and to make an offer to repurchase the notes upon the occurrence of a change of control will not apply to URNA and its restricted subsidiaries during any period when the 4 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 4 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. 3 7 / 8 percent Senior Notes due 2031. In August 2020, URNA issued $1.100 billion aggregate principal amount of 3 7 / 8 percent Senior Notes (the “3 7 / 8 percent Notes”) which are due February 15, 2031. The net proceeds from the issuance were approximately $1.087 billion (after deducting offering expenses). The 3 7 / 8 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 3 7 / 8 percent Notes may be redeemed on or after August 15, 2025, at specified redemption prices that range from 101.938 percent in 2025, to 100 percent in 2028 and thereafter, in each case, plus accrued and unpaid interest, if any. In addition, at any time on or prior to August 15, 2023, up to 40 percent of the aggregate principal amount of the 3 7 / 8 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 103.875 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 3 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens and (ii) mergers and consolidations, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the requirements to provide subsidiary guarantees and to make an offer to repurchase the notes upon the occurrence of a change of control will not apply to URNA and its restricted subsidiaries during any period when the 3 7 / 8 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 3 7 / 8 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. Loan Covenants and Compliance As of December 31, 2020, we were in compliance with the covenants and other provisions of the ABL, accounts receivable securitization and term loan facilities and the senior notes. Any failure to be in compliance with any material provision or covenant of these agreements could have a material adverse effect on our liquidity and operations. 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 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases Adoption of Accounting Standards Codification (“ASC”) Topic 842, “Leases” In March 2016, the FASB issued guidance ("Topic 842") to increase transparency and comparability among organizations by requiring (1) recognition of lease assets and lease liabilities on the balance sheet and (2) disclosure of key information about leasing arrangements. Some changes to the lessor accounting guidance were made to align both of the following: (1) the lessor accounting guidance with certain changes made to the lessee accounting guidance and (2) key aspects of the lessor accounting model with revenue recognition guidance. We adopted Topic 842 at the required adoption date of January 1, 2019, using the transition method that allowed us to initially apply Topic 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We used the package of practical expedients permitted under the transition guidance that allowed us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We additionally used, for our real estate operating leases, the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. We did not recognize a material adjustment to the opening balance of retained earnings upon adoption. Because of the transition method we used to adopt Topic 842, Topic 842 was not applied to periods prior to adoption and the adoption of Topic 842 had no impact on our previously reported results. As discussed in note 3 to the consolidated financial statements, most of our equipment rental revenues, which accounted for 84 percent of total revenues for the year ended December 31, 2020, were accounted for under the previous lease accounting standard through December 31, 2018 and are accounted for under Topic 842 following adoption. There were no significant changes to our revenue accounting upon adoption of Topic 842. See note 3 for a discussion of our revenue accounting (such discussion includes lessor disclosures required under Topic 842). The adoption of Topic 842 resulted in the recognition of right-of-use (“ROU”) assets and lease liabilities on our consolidated balance sheet, as discussed further below. The adoption of Topic 842 did not have a material impact on our consolidated income statement (as noted above, although a significant portion of our revenue is accounted for under Topic 842 following adoption, there were no significant changes to our revenue accounting upon adoption) or our consolidated cash flow statement. Lease Accounting We determine if an arrangement is a lease at inception. Our material lease contracts are generally for real estate or vehicles, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. We lease real estate and equipment under operating leases. We lease a significant portion of our branch locations, and also lease other premises used for purposes such as district and regional offices and service centers. Our finance lease obligations consist primarily of rental equipment (primarily vehicles) and building leases. Operating leases result in the recognition of ROU assets and lease liabilities on the balance sheet. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Our lease terms may include options, at our sole discretion, to extend or terminate the lease that we are reasonably certain to exercise. The amount of payments associated with such options reflected in the “Maturity of lease liabilities” table below is not material. Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense on such leases is recognized on a straight-line basis over the lease term. The primary leases we enter into with initial terms of 12 months or less are for equipment that we rent from vendors and then rent to our customers. We generate sublease revenue from such leases that we refer to as "re-rent revenue" as discussed in note 3 to the consolidated financial statements. Apart from the re-rent revenue discussed in note 3, we do not generate material sublease income. We have lease agreements with lease and non-lease components, and, for our real estate operating leases, we account for the lease and non-lease components as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The tables below present financial information associated with our leases. This information is only presented as of, and for the years ended, December 31, 2020 and December 31, 2019 because, as noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption. Classification December 31, 2020 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 688 $ 669 Finance lease assets Rental equipment 295 286 Less accumulated depreciation (86) (89) Rental equipment, net 209 197 Property and equipment, net: Non-rental vehicles 8 8 Buildings 19 18 Less accumulated depreciation and amortization (11) (15) Property and equipment, net 16 11 Total leased assets 913 877 Liabilities Current Operating Accrued expenses and other liabilities 178 178 Finance Short-term debt and current maturities of long-term debt 60 58 Long-term Operating Operating lease liabilities 549 533 Finance Long-term debt 75 69 Total lease liabilities $ 862 $ 838 Lease cost Classification Year Ended December 31, 2020 Year Ended December 31, 2019 Operating lease cost (1) Cost of equipment rentals, excluding depreciation (1) $ 366 $ 370 Selling, general and administrative expenses 10 10 Restructuring charge 9 16 Finance lease cost Amortization of leased assets Depreciation of rental equipment 31 28 Non-rental depreciation and amortization 1 2 Interest on lease liabilities Interest expense, net 5 6 Sublease income (2) (142) (157) Net lease cost $ 280 $ 275 _________________ (1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the years ended December 31, 2020 and 2019 includes $124 and $142, respectively, of short-term lease costs associated with equipment that we rent from vendors and then rent to our customers, as discussed further above. Apart from these costs, short-term lease costs are immaterial. (2) Primarily reflects re-rent revenue as discussed further above. Maturity of lease liabilities (as of December 31, 2020) Operating leases (1) Finance leases (2) 2021 $ 205 $ 63 2022 176 40 2023 144 28 2024 112 10 2025 76 1 Thereafter 113 3 Total 826 145 Less amount representing interest (99) (10) Present value of lease liabilities $ 727 $ 135 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of December 31, 2020. The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. (2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. Lease term and discount rate December 31, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating leases 5.0 4.8 Finance leases 3.0 3.2 Weighted-average discount rate Operating leases 4.2 % 4.7 % Finance leases 3.4 % 4.0 % Other information Year Ended December 31, 2020 Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 207 $ 202 Operating cash flows from finance leases 5 6 Financing cash flows from finance leases 53 47 Leased assets obtained in exchange for new operating lease liabilities 202 201 Leased assets obtained in exchange for new finance lease liabilities $ 64 $ 55 As discussed above, we adopted Topic 842 on January 1, 2019. Topic 842 is an update to Topic 840, which was the lease accounting standard in place through December 31, 2018. Upon adoption of Topic 842, the leases that were previously classified as capital leases through December 31, 2018 were classified as finance leases. There were no significant changes to the accounting upon this change in classification. The following table presents historic financial statement information for our leases (accounted for under Topic 840) for the year ended December 31, 2018: Capital leases Depreciation of rental equipment $ 22 Non-rental depreciation and amortization 1 Operating leases Rent expense on non-cancelable leases (1) $ 179 _________________ (1) Rent expense on non-cancelable operating leases does not include short-term lease costs associated with equipment that we rent from vendors and then rent to our customers (which is a component of the 2020 and 2019 operating lease costs under Topic 842 as reflected in the table above). Under Topic 840, rental payments under leases with terms of a month or less that were not renewed are not included in rent expense, and we excluded such expenses because of the short-term duration of |
Leases | Leases Adoption of Accounting Standards Codification (“ASC”) Topic 842, “Leases” In March 2016, the FASB issued guidance ("Topic 842") to increase transparency and comparability among organizations by requiring (1) recognition of lease assets and lease liabilities on the balance sheet and (2) disclosure of key information about leasing arrangements. Some changes to the lessor accounting guidance were made to align both of the following: (1) the lessor accounting guidance with certain changes made to the lessee accounting guidance and (2) key aspects of the lessor accounting model with revenue recognition guidance. We adopted Topic 842 at the required adoption date of January 1, 2019, using the transition method that allowed us to initially apply Topic 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We used the package of practical expedients permitted under the transition guidance that allowed us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We additionally used, for our real estate operating leases, the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. We did not recognize a material adjustment to the opening balance of retained earnings upon adoption. Because of the transition method we used to adopt Topic 842, Topic 842 was not applied to periods prior to adoption and the adoption of Topic 842 had no impact on our previously reported results. As discussed in note 3 to the consolidated financial statements, most of our equipment rental revenues, which accounted for 84 percent of total revenues for the year ended December 31, 2020, were accounted for under the previous lease accounting standard through December 31, 2018 and are accounted for under Topic 842 following adoption. There were no significant changes to our revenue accounting upon adoption of Topic 842. See note 3 for a discussion of our revenue accounting (such discussion includes lessor disclosures required under Topic 842). The adoption of Topic 842 resulted in the recognition of right-of-use (“ROU”) assets and lease liabilities on our consolidated balance sheet, as discussed further below. The adoption of Topic 842 did not have a material impact on our consolidated income statement (as noted above, although a significant portion of our revenue is accounted for under Topic 842 following adoption, there were no significant changes to our revenue accounting upon adoption) or our consolidated cash flow statement. Lease Accounting We determine if an arrangement is a lease at inception. Our material lease contracts are generally for real estate or vehicles, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. We lease real estate and equipment under operating leases. We lease a significant portion of our branch locations, and also lease other premises used for purposes such as district and regional offices and service centers. Our finance lease obligations consist primarily of rental equipment (primarily vehicles) and building leases. Operating leases result in the recognition of ROU assets and lease liabilities on the balance sheet. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Our lease terms may include options, at our sole discretion, to extend or terminate the lease that we are reasonably certain to exercise. The amount of payments associated with such options reflected in the “Maturity of lease liabilities” table below is not material. Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense on such leases is recognized on a straight-line basis over the lease term. The primary leases we enter into with initial terms of 12 months or less are for equipment that we rent from vendors and then rent to our customers. We generate sublease revenue from such leases that we refer to as "re-rent revenue" as discussed in note 3 to the consolidated financial statements. Apart from the re-rent revenue discussed in note 3, we do not generate material sublease income. We have lease agreements with lease and non-lease components, and, for our real estate operating leases, we account for the lease and non-lease components as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The tables below present financial information associated with our leases. This information is only presented as of, and for the years ended, December 31, 2020 and December 31, 2019 because, as noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption. Classification December 31, 2020 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 688 $ 669 Finance lease assets Rental equipment 295 286 Less accumulated depreciation (86) (89) Rental equipment, net 209 197 Property and equipment, net: Non-rental vehicles 8 8 Buildings 19 18 Less accumulated depreciation and amortization (11) (15) Property and equipment, net 16 11 Total leased assets 913 877 Liabilities Current Operating Accrued expenses and other liabilities 178 178 Finance Short-term debt and current maturities of long-term debt 60 58 Long-term Operating Operating lease liabilities 549 533 Finance Long-term debt 75 69 Total lease liabilities $ 862 $ 838 Lease cost Classification Year Ended December 31, 2020 Year Ended December 31, 2019 Operating lease cost (1) Cost of equipment rentals, excluding depreciation (1) $ 366 $ 370 Selling, general and administrative expenses 10 10 Restructuring charge 9 16 Finance lease cost Amortization of leased assets Depreciation of rental equipment 31 28 Non-rental depreciation and amortization 1 2 Interest on lease liabilities Interest expense, net 5 6 Sublease income (2) (142) (157) Net lease cost $ 280 $ 275 _________________ (1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the years ended December 31, 2020 and 2019 includes $124 and $142, respectively, of short-term lease costs associated with equipment that we rent from vendors and then rent to our customers, as discussed further above. Apart from these costs, short-term lease costs are immaterial. (2) Primarily reflects re-rent revenue as discussed further above. Maturity of lease liabilities (as of December 31, 2020) Operating leases (1) Finance leases (2) 2021 $ 205 $ 63 2022 176 40 2023 144 28 2024 112 10 2025 76 1 Thereafter 113 3 Total 826 145 Less amount representing interest (99) (10) Present value of lease liabilities $ 727 $ 135 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of December 31, 2020. The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. (2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. Lease term and discount rate December 31, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating leases 5.0 4.8 Finance leases 3.0 3.2 Weighted-average discount rate Operating leases 4.2 % 4.7 % Finance leases 3.4 % 4.0 % Other information Year Ended December 31, 2020 Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 207 $ 202 Operating cash flows from finance leases 5 6 Financing cash flows from finance leases 53 47 Leased assets obtained in exchange for new operating lease liabilities 202 201 Leased assets obtained in exchange for new finance lease liabilities $ 64 $ 55 As discussed above, we adopted Topic 842 on January 1, 2019. Topic 842 is an update to Topic 840, which was the lease accounting standard in place through December 31, 2018. Upon adoption of Topic 842, the leases that were previously classified as capital leases through December 31, 2018 were classified as finance leases. There were no significant changes to the accounting upon this change in classification. The following table presents historic financial statement information for our leases (accounted for under Topic 840) for the year ended December 31, 2018: Capital leases Depreciation of rental equipment $ 22 Non-rental depreciation and amortization 1 Operating leases Rent expense on non-cancelable leases (1) $ 179 _________________ (1) Rent expense on non-cancelable operating leases does not include short-term lease costs associated with equipment that we rent from vendors and then rent to our customers (which is a component of the 2020 and 2019 operating lease costs under Topic 842 as reflected in the table above). Under Topic 840, rental payments under leases with terms of a month or less that were not renewed are not included in rent expense, and we excluded such expenses because of the short-term duration of |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the provision (benefit) for income taxes for each of the three years in the period ended December 31, 2020 are as follows: Year ended December 31, 2020 2019 2018 Current Federal $ 290 $ 97 $ 47 Foreign 15 (6) 18 State and local 65 45 58 370 136 123 Deferred Federal (107) 185 243 Foreign 6 14 3 State and local (20) 5 11 (121) 204 257 Total $ 249 $ 340 $ 380 A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rate of 21 percent to the income before provision (benefit) for income taxes for each of the three years in the period ended December 31, 2020 is as follows: Year ended December 31, 2020 2019 2018 Computed tax at statutory tax rate $ 239 $ 318 $ 310 State income taxes, net of federal tax benefit 31 43 54 Other permanent items (3) (17) (1) Change in valuation allowance (22) (3) 7 Enactment of the Tax Act (1) — — 6 Foreign tax rate differential 4 (1) 4 Total $ 249 $ 340 $ 380 _________________ (1) The Tax Act was enacted in December 2017 and required (i) the revaluation of our net deferred tax liability based on a U.S. federal tax rate of 21 percent and (ii) a one-time transition tax for deemed repatriation of accumulated undistributed earnings of certain foreign investments. We primarily recognized the accounting for the enactment of the Tax Act upon adoption in 2017, and finalized the accounting in 2018. The components of deferred income tax assets (liabilities) are as follows: December 31, 2020 December 31, 2019 Reserves and allowances $ 129 $ 111 Debt cancellation and other 10 8 Net operating loss and credit carryforwards 242 371 Operating lease assets 183 182 Total deferred tax assets 564 672 Less: valuation allowance (1) (21) (43) Total net deferred tax assets 543 629 Property and equipment, including rental equipment (1,962) (2,135) Operating lease liabilities (183) (182) Intangibles (166) (199) Total deferred tax liability (2,311) (2,516) Total net deferred tax liability $ (1,768) $ (1,887) _________________ (1) Relates to foreign tax credits, state net operating loss carryforwards, and state tax credits that may not be realized. All of the remaining valuation allowance for foreign tax credits was released in 2020. We file income tax returns in the U.S., Canada and Europe. Without exception, we have completed our domestic and international income tax examinations, or the statute of limitations has expired in the respective jurisdictions, for years prior to 2011. For financial reporting purposes, income before provision for income taxes for our foreign subsidiaries was $83, $62 and $71 for the years ended December 31, 2020, 2019 and 2018, respectively. We have historically considered the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested, and, accordingly, no taxes were provided on such earnings prior to the fourth quarter of 2020. In the fourth quarter of 2020, we identified $135 of cash in our foreign operations in excess of near-term working capital needs, and determined that this amount could no longer be considered indefinitely reinvested. As a result, our prior assertion that all undistributed earnings of our foreign subsidiaries should be considered indefinitely reinvested has changed, and, in the fourth quarter of 2020, we recorded the immaterial taxes on a distribution of the $135 of cash. We continue to expect that the remaining balance of our undistributed foreign earnings will be indefinitely reinvested. If we determine that all or a portion of such foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. At December 31, 2020, unremitted earnings of foreign subsidiaries were $840. Determination of the amount of unrecognized deferred tax liability on these unremitted earnings is not practicable. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to a number of claims and proceedings that generally arise in the ordinary conduct of our business. These matters include, but are not limited to, general liability claims (including personal injury, product liability, and property and automobile claims), indemnification and guarantee obligations, employee injuries and employment-related claims, self-insurance obligations and contract and real estate matters. Based on advice of counsel and available information, including current status or stage of proceeding, and taking into account accruals included in our consolidated balance sheets for matters where we have established them, we currently believe that any liabilities ultimately resulting from these ordinary course claims and proceedings will not, individually or in the aggregate, have a material adverse effect on our consolidated financial position, results of operations or cash flows. Indemnification The Company indemnifies its officers and directors pursuant to indemnification agreements and may in addition indemnify these individuals as permitted by Delaware law. Employee Benefit Plans We currently sponsor two defined contribution 401(k) retirement plans, which are subject to the provisions of the Employee Retirement Income Security Act of 1974. We also sponsor a deferred profit sharing plan and a registered retirement savings plan for the benefit of the full-time employees of our Canadian subsidiaries. Under these plans, we match a percentage of the participants’ contributions up to a specified amount. Company contributions to the plans were $33, $37 and $31 in the years ended December 31, 2020, 2019 and 2018, respectively. Environmental Matters |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Common Stock | Common Stock We have 500 million authorized shares of common stock, $0.01 par value. At December 31, 2020 and 2019, there were 0.0 million shares of common stock reserved for issuance pursuant to options granted under our stock option plans. As of December 31, 2020, there were an aggregate of 0.8 million outstanding time and performance-based RSUs and 2.0 million shares available for grants of stock and options under our 2019 Long Term Incentive Plan. A summary of the transactions within the Company’s stock option plans follows (shares in thousands): Shares Weighted-Average Outstanding at December 31, 2019 37 50.40 Granted — — Exercised (26) 45.88 Canceled (1) 43.63 Outstanding at December 31, 2020 10 61.93 Exercisable at December 31, 2020 10 $ 61.93 The following table presents information associated with stock options as of December 31, 2020 and 2019, and for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Intrinsic value of options outstanding as of December 31 $ 2 $ 4 Intrinsic value of options exercisable as of December 31 2 4 Intrinsic value of options exercised 3 45 13 Weighted-average grant date fair value per option $ — $ — $ — In addition to stock options, the Company issues time-based and performance-based RSUs to certain officers and key executives under various equity incentive plans. The RSUs automatically convert to shares of common stock on a one-for-one basis as the awards vest. The time-based RSUs typically vest over a three year vesting period beginning 12 months from the grant date and thereafter annually on the anniversary of the grant date. The performance-based RSUs vest based on the achievement of the performance conditions during the applicable performance periods (currently the calendar year). There were 360 thousand shares of common stock issued upon vesting of RSUs during 2020, net of 207 thousand shares surrendered to satisfy tax obligations. The Company measures the value of RSUs at fair value based on the closing price of the underlying common stock on the grant date. The Company amortizes the fair value of outstanding RSUs as stock-based compensation expense over the requisite service period on a straight-line basis, or sooner if the employee effectively vests upon termination of employment under certain circumstances. For performance-based RSUs, compensation expense is recognized to the extent that the satisfaction of the performance condition is considered probable. A summary of RSUs granted follows (RSUs in thousands): Year Ended December 31, 2020 2019 2018 RSUs granted 643 456 566 Weighted-average grant date price per unit $ 140.99 $ 124.37 $ 175.79 As of December 31, 2020, the total pretax compensation cost not yet recognized by the Company with regard to unvested RSUs was $49. The weighted-average period over which this compensation cost is expected to be recognized is 2.0 years. A summary of RSU activity for the year ended December 31, 2020 follows (RSUs in thousands): Stock Units Weighted-Average Nonvested as of December 31, 2019 461 $ 104.40 Granted 643 140.99 Vested (520) 138.48 Forfeited (67) 135.44 Nonvested as of December 31, 2020 517 $ 164.62 The total fair value of RSUs vested during the fiscal years ended December 31, 2020, 2019 and 2018 was $75, $80, and $114, respectively. Dividend Policy . Holdings has not paid dividends on its common stock since inception. The payment of any future dividends or the authorization of stock repurchases or other recapitalizations will be determined by our Board of Directors in light of conditions then existing, including earnings, financial condition and capital requirements, financing agreements, business conditions, stock price and other factors. The terms of certain agreements governing our outstanding indebtedness contain certain limitations on our ability to move operating cash flows to Holdings and/or to pay dividends on, or effect repurchases of, our common stock. In addition, under Delaware law, dividends may only be paid out of surplus or current or prior year’s net profits. Stockholders’ Rights Plan. Our stockholders' rights plan expired in accordance with its terms in 2011. Our Board of Directors elected not to renew or extend the plan. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) First Second Third Fourth Full For the year ended December 31, 2020 (1): Total revenues $ 2,125 $ 1,939 $ 2,187 $ 2,279 $ 8,530 Gross profit 727 701 886 869 3,183 Operating income 358 381 551 510 1,800 Net income (1) 173 212 208 297 890 Earnings per share—basic 2.33 2.94 2.88 4.11 12.24 Earnings per share—diluted (3) 2.33 2.93 2.87 4.09 12.20 For the year ended December 31, 2019 (2): Total revenues $ 2,117 $ 2,290 $ 2,488 $ 2,456 $ 9,351 Gross profit 761 911 1,033 965 3,670 Operating income 368 529 656 599 2,152 Net income (2) 175 270 391 338 1,174 Earnings per share—basic 2.21 3.45 5.10 4.51 15.18 Earnings per share—diluted (3) 2.19 3.44 5.08 4.49 15.11 (1) As discussed in note 12 to our consolidated financial statements, in the fourth quarter of 2020, we redeemed all of our 4 5 / 8 percent Senior Notes due 2025, and recognized a redemption loss of $24 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the redeemed notes. (2) In the fourth quarter of 2019, we issued $750 aggregate principal amount of 3 7 / 8 percent Senior Secured Notes due 2027 and redeemed all of our 4 5 / 8 percent Senior Secured Notes. Upon redemption, we recognized a loss of $29 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the redeemed notes. (3) Diluted earnings per share includes the after-tax impacts of the following: First Second Third Fourth Full For the year ended December 31, 2020: Merger related intangible asset amortization (4) (0.59) (0.59) (0.55) (0.52) (2.22) Impact on depreciation related to acquired fleet and property and equipment (5) (0.03) (0.02) (0.06) 0.04 (0.08) Impact of the fair value mark-up of acquired fleet (6) (0.12) (0.10) (0.12) (0.16) (0.51) Restructuring charge (7) (0.02) (0.04) (0.06) (0.06) (0.18) Asset impairment charge (8) (0.26) — (0.10) — (0.37) Loss on extinguishment of debt securities and amendment of ABL facility (9) — — (1.64) (0.25) (1.88) For the year ended December 31, 2019: Merger related costs (10) $ (0.01) $ — $ — $ — $ (0.01) Merger related intangible asset amortization (4) (0.64) (0.64) (0.63) (0.60) (2.48) Impact on depreciation related to acquired fleet and property and equipment (5) (0.14) (0.12) (0.07) (0.05) (0.39) Impact of the fair value mark-up of acquired fleet (6) (0.25) (0.15) (0.14) (0.16) (0.72) Restructuring charge (7) (0.07) (0.06) (0.02) (0.03) (0.18) Asset impairment charge (8) (0.01) (0.03) (0.02) 0.01 (0.05) Loss on extinguishment of debt securities and amendment of ABL facility (9) — (0.30) — (0.28) (0.58) (4) This reflects the amortization of the intangible assets acquired in the RSC, National Pump, NES, Neff, BakerCorp and BlueLine acquisitions. (5) This reflects the impact of extending the useful lives of equipment acquired in the RSC, NES, Neff, BakerCorp and BlueLine acquisitions, net of the impact of additional depreciation associated with the fair value mark-up of such equipment. (6) This reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment acquired in the RSC, NES, Neff and BlueLine acquisitions and subsequently sold. (7) As discussed in note 5 to our consolidated financial statements, this primarily reflects severance costs and branch closure charges associated with our restructuring programs. (8) This reflects write-offs of leasehold improvements and other fixed assets. As discussed in note 5 to our consolidated financial statements, the 2020 charges primarily reflect the discontinuation of certain equipment programs, and were not related to COVID-19. (9) This primarily reflects the difference between the net carrying amount and the total purchase price of the redeemed notes. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareBasic 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): Year Ended December 31, 2020 2019 2018 Numerator: Net income available to common stockholders $ 890 $ 1,174 $ 1,096 Denominator: Denominator for basic earnings per share—weighted-average common shares 72,658 77,341 82,652 Effect of dilutive securities: Employee stock options 12 114 379 Restricted stock units 259 255 499 Denominator for diluted earnings per share—adjusted weighted-average common shares 72,929 77,710 83,530 Basic earnings per share $ 12.24 $ 15.18 $ 13.26 Diluted earnings per share $ 12.20 $ 15.11 $ 13.12 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure | The rollforward of our allowance for doubtful accounts (in total, and associated with revenues arising from both Topic 606 and Topic 842/840) is shown below. Year ended December 31, 2020 2019 2018 Beginning balance $ 103 $ 93 $ 68 Acquired — 2 14 Charged to costs and expenses (1) 9 8 45 Charged to revenue (2) 25 34 — Deductions (3) (29) (34) (34) Ending balance $ 108 $ 103 $ 93 _________________ (1) Reflects bad debt expenses recognized within selling, general and administrative expenses (associated with Topic 606 revenues). (2) Primarily reflects doubtful accounts associated with lease revenues that were recognized as a reduction to equipment rentals revenue (primarily associated with Topic 842 revenues). We adopted Topic 842 in 2019 using a transition method that does not require application to periods prior to adoption. (3) Represents write-offs of accounts, net of immaterial recoveries. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS UNITED RENTALS, INC. (In millions) Description Balance at Acquired Charged to Charged to Deductions Balance Year Ended December 31, 2020: Allowance for doubtful accounts $ 103 $ — $ 9 (a) $ 25 (a) $ 29 (b) $ 108 Reserve for obsolescence and shrinkage 10 — 34 — 36 (c) 8 Self-insurance reserve 121 — 169 — 163 (d) 127 Year Ended December 31, 2019: Allowance for doubtful accounts $ 93 $ 2 $ 8 (a) $ 34 (a) $ 34 (b) $ 103 Reserve for obsolescence and shrinkage 5 4 40 — 39 (c) 10 Self-insurance reserve 106 — 180 — 165 (d) 121 Year Ended December 31, 2018: Allowance for doubtful accounts $ 68 $ 14 $ 45 (a) $ — (a) $ 34 (b) $ 93 Reserve for obsolescence and shrinkage 7 1 26 — 29 (c) 5 Self-insurance reserve 100 5 144 — 143 (d) 106 The above information reflects the continuing operations of the Company for the periods presented. Additionally, because the Company has retained certain self-insurance liabilities associated with the discontinued traffic control business, those amounts have been included as well. (a) Amounts charged to cost and expenses reflect bad debt expenses recognized within selling, general and administrative expenses. The amounts charged to revenue primarily reflect doubtful accounts associated with lease revenues that were recognized as a reduction to equipment rentals revenue. In 2019, we adopted an updated lease accounting standard (see note 13 to the consolidated financial statements for further detail) that requires that we recognize doubtful accounts associated with lease revenues as a reduction to equipment rentals revenue. We adopted the updated lease accounting standard using a transition method that does not require application to periods prior to adoption. (b) Represents write-offs of accounts, net of recoveries. (c) Represents write-offs. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Cash Equivalents | Cash Equivalents We consider all highly liquid instruments with maturities of three months or less when purchased to be cash equivalents. Our cash equivalents at December 31, 2020 and 2019 consist of direct obligations of financial institutions rated A or better. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We maintain allowances for doubtful accounts. These allowances reflect our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectibility. Our allowance for doubtful accounts as of December 31, 2020 included an adjustment for the estimated impact of COVID-19 on future collectibility that was not material to our financial statements. Our estimate could require change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowances. Trade receivables that have contractual maturities of one year or less are written-off when they are determined to be uncollectible based on the criteria necessary to qualify as a deduction for federal tax purposes. Write-offs of such receivables require management approval based on specified dollar thresholds. |
Inventory | Inventory Inventory consists of new equipment, contractor supplies, tools, parts, fuel and related supply items. Inventory is stated at the lower of cost or market. Cost is determined, depending on the type of inventory, using either a specific identification, weighted-average or first-in, first-out method. |
Rental Equipment | Rental Equipment Rental equipment, which includes service and delivery vehicles, is recorded at cost and depreciated over the estimated useful life of the equipment using the straight-line method. The range of estimated useful lives for rental equipment is two |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. The range of estimated useful lives for property and equipment is two |
Acquisition Accounting | Acquisition Accounting We have made a number of acquisitions in the past and may continue to make acquisitions in the future. The assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition. Long-lived assets (principally rental equipment), goodwill and other intangible assets generally represent the largest components of our acquisitions. Rental equipment is valued utilizing either a cost, market or income approach, or a combination of certain of these methods, depending on the asset being valued and the availability of market or income data. The intangible assets that we have acquired are non-compete agreements, customer relationships and trade names and associated trademarks. The estimated fair values of these intangible assets reflect various assumptions about discount rates, revenue growth rates, operating margins, terminal values, useful lives and other prospective financial information. Goodwill is calculated as the excess of the cost of the acquired entity over the net of the fair value of the assets acquired and the liabilities assumed. Non-compete agreements, customer relationships and trade names and associated trademarks are valued based on an excess earnings or income approach based on projected cash flows. Determining the fair value of the assets and liabilities acquired is judgmental in nature and can involve the use of significant estimates and assumptions. The judgments made in determining the estimated fair value assigned to the assets acquired, as well as the estimated life of the assets, can materially impact net income in periods subsequent to the acquisition through depreciation and amortization, and in certain instances through impairment charges, if the asset becomes impaired in the future. As discussed below, we regularly review for impairments. |
Evaluation of Goodwill Impairment | Evaluation of Goodwill Impairment Goodwill is tested for impairment annually or more frequently if an event or circumstance indicates that an impairment loss may have been incurred. Application of the goodwill impairment test requires judgment, including: the identification of reporting units; assignment of assets and liabilities to reporting units; assignment of goodwill to reporting units; determination of the fair value of each reporting unit; and an assumption as to the form of the transaction in which the reporting unit would be acquired by a market participant (either a taxable or nontaxable transaction). We estimate the fair value of our reporting units (which are our regions) using a combination of an income approach based on the present value of estimated future cash flows and a market approach based on market price data of shares of our Company and other corporations engaged in similar businesses as well as acquisition multiples paid in recent transactions within our industry (including our own acquisitions). We believe this approach, which utilizes multiple valuation techniques, yields the most appropriate evidence of fair value. As discussed below (see "Guidance Adopted in 2020-Simplifying the Test for Goodwill Impairment"), in 2020, we adopted accounting guidance that eliminated the second step from the goodwill impairment test (this guidance did not have a significant impact on our financial statements). Prior guidance required utilizing a two-step process to review goodwill for impairment. A second step was required if there was an indication that an impairment may exist, and the second step required calculating the potential impairment by comparing the implied fair value of the reporting unit's goodwill (as if purchase accounting were performed on the testing date) with the carrying amount of the goodwill. We did not perform this second step for the goodwill impairment test conducted as of October 1, 2020 or 2019 (for 2020, because the adopted accounting guidance eliminated the second step, and, for 2019, because there was no indication that an impairment may have existed). The first step of the impairment test requires comparing the fair value of a reporting unit with its carrying amount. Financial Accounting Standards Board ("FASB") guidance permits entities to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In connection with our goodwill impairment test that was conducted as of October 1, 2020, we bypassed the qualitative assessment for each reporting unit and quantitatively compared the fair values of our reporting units with their carrying amounts. We considered the impact of COVID-19 when performing the test, and it did not have a material impact on the test results. Our goodwill impairment testing as of this date indicated that all of our reporting units, excluding our Fluid Solutions Europe reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 42 percent. As discussed above, in July 2018, we completed the acquisition of BakerCorp. All of the assets in the Fluid Solutions Europe reporting unit were acquired in the BakerCorp acquisition. The estimated fair value of our Fluid Solutions Europe reporting unit exceeded its carrying amount by 22 percent. As all of the assets in the Fluid Solutions Europe reporting unit were recorded at fair value as of the July 2018 acquisition date, we expected the percentage by which the Fluid Solutions Europe reporting unit’s fair value exceeded its carrying value to be significantly less than the equivalent percentages determined for our other reporting units. In connection with our goodwill impairment test that was conducted as of October 1, 2019, we bypassed the qualitative assessment for each reporting unit and proceeded directly to the first step of the goodwill impairment test. Our goodwill impairment testing as of this date indicated that all of our reporting units, excluding our Fluid Solutions Europe reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 32 percent. As discussed above, in July 2018, we completed the acquisition of BakerCorp. All of the assets in the Fluid Solutions Europe reporting unit were acquired in the BakerCorp acquisition. The estimated fair value of our Fluid Solutions Europe reporting unit exceeded its carrying amount by 12 percent. As all of the assets in the Fluid Solutions Europe reporting unit were recorded at fair value as of the July 2018 acquisition date, we expected the percentage by which the Fluid Solutions Europe reporting unit’s fair value exceeded its carrying value to be significantly less than the equivalent percentages determined for our other reporting units. |
Restructuring Charges | Restructuring ChargesCosts associated with exit or disposal activities, including lease termination costs and certain employee severance costs associated with restructuring, branch closings or other activities, are recognized at fair value when they are incurred. |
Other Intangible Assets | Other Intangible Assets Other intangible assets consist of non-compete agreements, customer relationships and trade names and associated trademarks. The non-compete agreements are being amortized on a straight-line basis over initial periods of approximately 5 years. The customer relationships are being amortized either using the sum of the years' digits method or on a straight-line basis over initial periods ranging from 5 to 15 years. The trade names and associated trademarks are being amortized using the sum of the years' digits method over initial periods of approximately 5 years. We believe that the amortization methods used reflect the estimated pattern in which the economic benefits will be consumed. |
Long-Lived Assets | Long-Lived Assets Long-lived assets are recorded at the lower of amortized cost or fair value. As part of an ongoing review of the valuation of long-lived assets, we assess the carrying value of such assets if facts and circumstances suggest they may be impaired. If this review indicates the carrying value of such an asset may not be recoverable, as determined by an undiscounted cash flow analysis over the remaining useful life, the carrying value would be reduced to its estimated fair value. |
Translation of Foreign Currency | Translation of Foreign Currency Assets and liabilities of our foreign subsidiaries that have a functional currency other than U.S. dollars are translated into U.S. dollars using exchange rates at the balance sheet date. Revenues and expenses are translated at average exchange rates effective during the year. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive (loss) income within stockholders’ equity. |
Revenue Recognition | Revenue Recognition As discussed in note 3 to our consolidated financial statements, we recognize revenue in accordance with two different accounting standards: 1) Topic 606 (which addresses revenue from contracts with customers) and 2) Topic 842 (which addresses lease revenue). As discussed in note 13 to our consolidated financial statements, in 2019, we adopted Topic 842. Topic 842 replaced Topic 840, which was the lease accounting standard in effect for the year ended December 31, 2018. As discussed in note 3, most of our revenue is accounted for under Topic 842. The discussion below addresses our primary revenue types based on the accounting standard used to determine the accounting. Lease revenues (Topic 842) The accounting for the significant types of revenue that are accounted for under Topic 842 is discussed below. Owned equipment rentals: Owned equipment rentals represent revenues from renting equipment that we own. We account for such rentals as operating leases. Re-rent revenue: Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. Revenues from contracts with customers (Topic 606) The accounting for the significant types of revenue that are accounted for under Topic 606 is discussed below. Delivery and pick-up: Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. Sales of rental equipment, new equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is probable. Service and other revenues primarily represent revenues earned from providing repair and maintenance services on our customers’ fleet (including parts sales). Service revenue is recognized as the services are performed. Delivery Expense Equipment rentals include our revenues from fees we charge for equipment delivery. Delivery costs are charged to operations as incurred, and are included in cost of revenues on our consolidated statements of income. |
Advertising Expense | Advertising Expense We promote our business through local and national advertising in various media, including television, trade publications, branded sponsorships, yellow pages, the internet, radio and direct mail. Advertising costs are generally expensed as incurred. These costs may include the development costs for branded content and advertising campaigns. Advertising expense, net of the qualified advertising reimbursements discussed below, was immaterial for the years ended December 31, 2020, 2019 and 2018. |
Insurance | Insurance We are insured for general liability, workers’ compensation and automobile liability, subject to deductibles or self-insured retentions per occurrence. Losses within the deductible amounts are accrued based upon the aggregate liability for reported claims incurred, as well as an estimated liability for claims incurred but not yet reported. These liabilities are not discounted. We are also self-insured for group medical claims but purchase “stop loss” insurance as protection against any one significant loss. |
Income Taxes | Income Taxes We use the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities and are measured using the tax rates and laws that are expected to be in effect when the differences are expected to reverse. Recognition of deferred tax assets is limited to amounts considered by management to be more likely than not to be realized in future periods. The most significant positive evidence that we consider in the recognition of deferred tax assets is the expected reversal of cumulative deferred tax liabilities resulting from book versus tax depreciation of our rental equipment fleet that is well in excess of the deferred tax assets. We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return regarding uncertainties in income tax positions. The first step is recognition: we determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, we presume that the position will be examined by the appropriate taxing authority with full knowledge of all relevant information. The second step is measurement: a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset or an increase in a deferred tax liability. We have historically considered the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested, and, accordingly, no taxes were provided on such earnings prior to the fourth quarter of 2020. In the fourth quarter of 2020, we identified $135 of cash in our foreign operations in excess of near-term working capital needs, and determined that this amount could no longer be considered indefinitely reinvested. As a result, our prior assertion that all undistributed earnings of our foreign subsidiaries should be considered indefinitely reinvested has changed, and, in the fourth quarter of 2020, we recorded the immaterial taxes on a distribution of the $135 of cash. We continue to expect that the remaining balance of our undistributed foreign earnings will be indefinitely reinvested. If we determine that all or a portion of such foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. The Tax Cuts and Jobs Act (the "Tax Act") was enacted in December 2017, and required a one-time transition tax for deemed repatriation of accumulated undistributed earnings of certain foreign investments, which we primarily recognized upon adoption of the Tax Act in 2017. As discussed in note 14 to the consolidated financial statements, we completed our accounting for the tax effects of enactment of the Tax Act in 2018. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates impact the calculation of the allowance for doubtful accounts, depreciation and amortization, income taxes and reserves for claims. Actual results could materially differ from those estimates. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk include cash and cash equivalents and accounts receivable. We maintain cash and cash equivalents with high quality financial institutions. Concentration of credit risk with respect to receivables is limited because a large number of geographically diverse customers makes up our customer base (see note 3 to our consolidated financial statements for further detail). We manage credit risk through credit approvals, credit limits and other monitoring procedures. |
Stock-Based Compensation | Stock-Based Compensation We measure stock-based compensation at the grant date based on the fair value of the award and recognize stock-based compensation expense over the requisite service period. Determining the fair value of stock option awards requires judgment, including estimating stock price volatility and expected option life. Restricted stock awards are valued based on the fair value of the stock on the grant date and the related compensation expense is recognized over the service period. Similarly, for time-based restricted stock awards subject to graded vesting, we recognize compensation cost on a straight-line basis over the requisite service period. For performance-based restricted stock units ("RSUs"), compensation expense is recognized if satisfaction of the performance condition is considered probable. We recognize forfeitures of stock-based compensation as they occur. |
New Accounting Pronouncements | New Accounting Pronouncements Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued guidance intended to simplify the accounting for income taxes. The guidance removes the following exceptions: 1) exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, 2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, 3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary and 4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Additionally, the guidance simplifies the accounting for income taxes by: 1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, 2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction, 3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements (although the entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority), 4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date and 5) making minor improvements for income tax accounting related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2020. Different components of the guidance require retrospective, modified retrospective or prospective adoption, and early adoption is permitted. We will adopt this guidance when it becomes effective, in the first quarter of 2021, and the impact on our financial statements is not expected to be material. Guidance Adopted in 2020 Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued guidance that requires companies to present certain financial assets net of the amount expected to be collected. Trade receivables (as noted below, excluding receivables arising from operating lease revenues) are the only material financial asset we have that is impacted by this guidance. The guidance requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectibility. This guidance does not apply to receivables arising from operating lease revenues. As discussed in note 3 to the consolidated financial statements, most of our equipment rental revenue is accounted for as lease revenue (such revenue represented 77 percent of our total revenues for the year ended December 31, 2020). We adopted this guidance in 2020, and the impact of adoption on our financial statements was not material. See note 3 (see "Receivables and contract assets and liabilities") for further discussion of our receivables. Facilitation of the Effects of Reference Rate Reform on Financial Reporting . In March 2020, the FASB issued guidance that provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. We adopted this guidance in 2020, and the impact of adoption on our financial statements was not material. The expedients and exceptions in this guidance are optional, and we are evaluating the potential future financial statement impact of any such expedient or exception that we may elect to apply. Simplifying the Test for Goodwill Impairment . In January 2017, the Financial Accounting Standards Board ("FASB") issued guidance intended to simplify the subsequent accounting for goodwill acquired in a business combination. Prior guidance required utilizing a two-step process to review goodwill for impairment. A second step was required if there was an indication that an impairment may exist, and the second step required calculating the potential impairment by comparing the implied fair value of the reporting unit's goodwill (as if purchase accounting were performed on the testing date) with the carrying amount of the goodwill. The new guidance eliminates the second step from the goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value (although the loss should not exceed the total amount of goodwill allocated to the reporting unit). The guidance requires prospective adoption. We adopted the guidance for the goodwill impairment test that we conducted as of October 1, 2020, and adoption of the guidance did not have a significant impact on our financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of changes in accounting principles | In the following table, revenue is summarized by type and by the applicable accounting standard. Year Ended December 31, 2020 2019 2018 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Topic 840 Topic 606 Total Revenues: Owned equipment rentals $ 6,056 $ — $ 6,056 $ 6,777 $ — $ 6,777 $ 5,946 $ — $ 5,946 Re-rent revenue 142 — 142 155 — 155 138 — 138 Ancillary and other rental revenues: Delivery and pick-up — 506 506 — 564 564 — 477 477 Other 338 98 436 356 112 468 287 92 379 Total ancillary and other rental revenues 338 604 942 356 676 1,032 287 569 856 Total equipment rentals 6,536 604 7,140 7,288 676 7,964 6,371 569 6,940 Sales of rental equipment — 858 858 — 831 831 — 664 664 Sales of new equipment — 247 247 — 268 268 — 208 208 Contractor supplies sales — 98 98 — 104 104 — 91 91 Service and other revenues — 187 187 — 184 184 — 144 144 Total revenues $ 6,536 $ 1,994 $ 8,530 $ 7,288 $ 2,063 $ 9,351 $ 6,371 $ 1,676 $ 8,047 |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure | The rollforward of our allowance for doubtful accounts (in total, and associated with revenues arising from both Topic 606 and Topic 842/840) is shown below. Year ended December 31, 2020 2019 2018 Beginning balance $ 103 $ 93 $ 68 Acquired — 2 14 Charged to costs and expenses (1) 9 8 45 Charged to revenue (2) 25 34 — Deductions (3) (29) (34) (34) Ending balance $ 108 $ 103 $ 93 _________________ (1) Reflects bad debt expenses recognized within selling, general and administrative expenses (associated with Topic 606 revenues). (2) Primarily reflects doubtful accounts associated with lease revenues that were recognized as a reduction to equipment rentals revenue (primarily associated with Topic 842 revenues). We adopted Topic 842 in 2019 using a transition method that does not require application to periods prior to adoption. (3) Represents write-offs of accounts, net of immaterial recoveries. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS UNITED RENTALS, INC. (In millions) Description Balance at Acquired Charged to Charged to Deductions Balance Year Ended December 31, 2020: Allowance for doubtful accounts $ 103 $ — $ 9 (a) $ 25 (a) $ 29 (b) $ 108 Reserve for obsolescence and shrinkage 10 — 34 — 36 (c) 8 Self-insurance reserve 121 — 169 — 163 (d) 127 Year Ended December 31, 2019: Allowance for doubtful accounts $ 93 $ 2 $ 8 (a) $ 34 (a) $ 34 (b) $ 103 Reserve for obsolescence and shrinkage 5 4 40 — 39 (c) 10 Self-insurance reserve 106 — 180 — 165 (d) 121 Year Ended December 31, 2018: Allowance for doubtful accounts $ 68 $ 14 $ 45 (a) $ — (a) $ 34 (b) $ 93 Reserve for obsolescence and shrinkage 7 1 26 — 29 (c) 5 Self-insurance reserve 100 5 144 — 143 (d) 106 The above information reflects the continuing operations of the Company for the periods presented. Additionally, because the Company has retained certain self-insurance liabilities associated with the discontinued traffic control business, those amounts have been included as well. (a) Amounts charged to cost and expenses reflect bad debt expenses recognized within selling, general and administrative expenses. The amounts charged to revenue primarily reflect doubtful accounts associated with lease revenues that were recognized as a reduction to equipment rentals revenue. In 2019, we adopted an updated lease accounting standard (see note 13 to the consolidated financial statements for further detail) that requires that we recognize doubtful accounts associated with lease revenues as a reduction to equipment rentals revenue. We adopted the updated lease accounting standard using a transition method that does not require application to periods prior to adoption. (b) Represents write-offs of accounts, net of recoveries. (c) Represents write-offs. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Equipment rental revenue by equipment type | The following table presents the percentage of equipment rental revenue by equipment type for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 Primarily rented by our general rentals segment: General construction and industrial equipment 43 % 43 % 44 % Aerial work platforms 27 % 28 % 28 % General tools and light equipment 8 % 8 % 8 % Primarily rented by our trench, power and fluid solutions segment: Power and HVAC equipment 9 % 8 % 8 % Trench safety equipment 6 % 6 % 6 % Fluid solutions equipment 7 % 7 % 6 % |
Financial information by segment | The following table sets forth financial information by segment as of and for the years ended December 31, 2020, 2019 and 2018: General Trench, Total 2020 Equipment rentals $ 5,472 $ 1,668 $ 7,140 Sales of rental equipment 785 73 858 Sales of new equipment 214 33 247 Contractor supplies sales 64 34 98 Service and other revenues 164 23 187 Total revenue 6,699 1,831 8,530 Depreciation and amortization expense 1,633 355 1,988 Equipment rentals gross profit 1,954 765 2,719 Capital expenditures 969 189 1,158 Total assets $ 15,051 $ 2,817 $ 17,868 2019 Equipment rentals $ 6,202 $ 1,762 $ 7,964 Sales of rental equipment 768 63 831 Sales of new equipment 238 30 268 Contractor supplies sales 71 33 104 Service and other revenues 157 27 184 Total revenue 7,436 1,915 9,351 Depreciation and amortization expense 1,681 357 2,038 Equipment rentals gross profit 2,407 800 3,207 Capital expenditures 1,967 383 2,350 Total assets $ 16,036 $ 2,934 $ 18,970 2018 Equipment rentals $ 5,550 $ 1,390 $ 6,940 Sales of rental equipment 619 45 664 Sales of new equipment 186 22 208 Contractor supplies sales 68 23 91 Service and other revenues 127 17 144 Total revenue 6,550 1,497 8,047 Depreciation and amortization expense 1,410 261 1,671 Equipment rentals gross profit 2,293 670 2,963 Capital expenditures 1,980 311 2,291 Total assets $ 15,597 $ 2,536 $ 18,133 |
Reconciliation of segment operating income to total Company operating income | The following is a reconciliation of equipment rentals gross profit to income before provision for income taxes: Year Ended December 31, 2020 2019 2018 Total equipment rentals gross profit $ 2,719 $ 3,207 $ 2,963 Gross profit from other lines of business 464 463 401 Selling, general and administrative expenses (979) (1,092) (1,038) Merger related costs — (1) (36) Restructuring charge (17) (18) (31) Non-rental depreciation and amortization (387) (407) (308) Interest expense, net (669) (648) (481) Other income, net 8 10 6 Income before provision for income taxes $ 1,139 $ 1,514 $ 1,476 |
Geographic area information | The following table presents geographic area information for the years ended December 31, 2020, 2019 and 2018, except for balance sheet information, which is presented as of December 31, 2020 and 2019: Domestic Foreign Total 2020 Equipment rentals $ 6,543 $ 597 $ 7,140 Sales of rental equipment 784 74 858 Sales of new equipment 218 29 247 Contractor supplies sales 86 12 98 Service and other revenues 166 21 187 Total revenue 7,797 733 8,530 Rental equipment, net 7,960 745 8,705 Property and equipment, net 558 46 604 Goodwill and other intangible assets, net $ 5,361 $ 455 $ 5,816 2019 Equipment rentals $ 7,283 $ 681 $ 7,964 Sales of rental equipment 757 74 831 Sales of new equipment 238 30 268 Contractor supplies sales 92 12 104 Service and other revenues 164 20 184 Total revenue 8,534 817 9,351 Rental equipment, net 8,995 792 9,787 Property and equipment, net 554 50 604 Goodwill and other intangible assets, net $ 5,592 $ 457 $ 6,049 2018 Equipment rentals $ 6,388 $ 552 $ 6,940 Sales of rental equipment 609 55 664 Sales of new equipment 184 24 208 Contractor supplies sales 80 11 91 Service and other revenues 126 18 144 Total revenue $ 7,387 $ 660 $ 8,047 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charges (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring charges | The table below provides certain information concerning our restructuring charges under the 2020-2021 Cost Savings restructuring program: Description Beginning Charged to Payments Ending Year Ended December 31, 2020: Branch closure charges $ — $ 7 $ (4) $ 3 Severance and other — 8 (6) 2 Total $ — $ 15 $ (10) $ 5 ________________ (1) Reflected in our consolidated statements of income as “Restructuring charge” (such charge also includes activity under our other restructuring programs). The restructuring charges are not allocated to our segments. As of December 31, 2020, we have incurred total restructuring charges under the 2020-2021 Cost Savings restructuring program of $16, comprised of $8 of branch closure charges and $8 of severance and other costs. |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | Prepaid expenses and other assets consist of the following: December 31, 2020 2019 Equipment (1) $ 300 $ — Insurance 18 12 Advertising reimbursements (2) 11 27 Income taxes 4 51 Other (3) 42 50 Prepaid expenses and other assets $ 375 $ 140 _________________ (1) Reflects refundable deposits on expected rental equipment purchases pursuant to advanced purchase agreements. Such deposits are presented as a component of our cash flows from operations. We expect to purchase and receive the equipment in 2021. (2) Reflects reimbursements due for advertising that promotes a vendor’s products or services. See note 2 ("Advertising Expense") for further detail. |
Rental Equipment (Tables)
Rental Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of rental equipment | Rental equipment consists of the following: December 31, 2020 2019 Rental equipment $ 14,216 $ 14,852 Less accumulated depreciation (5,511) (5,065) Rental equipment, net (1) $ 8,705 $ 9,787 _________________ (1) As discussed above, disciplined management of capital expenditures and fleet capacity is a component of our COVID-19 response plan, which contributed to the year-over-year decrease in net rental equipment. Property and equipment consist of the following: December 31, 2020 2019 Land $ 111 $ 101 Buildings 215 210 Non-rental vehicles 168 168 Machinery and equipment 164 157 Furniture and fixtures 338 328 Leasehold improvements 396 348 1,392 1,312 Less accumulated depreciation and amortization (788) (708) Property and equipment, net $ 604 $ 604 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Rental equipment consists of the following: December 31, 2020 2019 Rental equipment $ 14,216 $ 14,852 Less accumulated depreciation (5,511) (5,065) Rental equipment, net (1) $ 8,705 $ 9,787 _________________ (1) As discussed above, disciplined management of capital expenditures and fleet capacity is a component of our COVID-19 response plan, which contributed to the year-over-year decrease in net rental equipment. Property and equipment consist of the following: December 31, 2020 2019 Land $ 111 $ 101 Buildings 215 210 Non-rental vehicles 168 168 Machinery and equipment 164 157 Furniture and fixtures 338 328 Leasehold improvements 396 348 1,392 1,312 Less accumulated depreciation and amortization (788) (708) Property and equipment, net $ 604 $ 604 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in carrying amount of goodwill | The following table presents the changes in the carrying amount of goodwill for each of the three years in the period ended December 31, 2020: General rentals Trench, Total Balance at January 1, 2018 (1) $ 3,607 $ 475 $ 4,082 Goodwill related to acquisitions (2) (3) 752 247 999 Foreign currency translation and other adjustments (17) (6) (23) Balance at December 31, 2018 (1) 4,342 716 5,058 Goodwill related to acquisitions (2) 10 73 83 Foreign currency translation and other adjustments 10 3 13 Balance at December 31, 2019 (1) 4,362 792 5,154 Goodwill related to acquisitions (2) 1 (3) (2) Foreign currency translation and other adjustments 5 11 16 Balance at December 31, 2020 (1) $ 4,368 $ 800 $ 5,168 _________________ (1) The total carrying amount of goodwill for all periods in the table above is reflected net of $1.557 billion of accumulated impairment charges, which were primarily recorded in our general rentals segment. (2) Includes goodwill adjustments for the effect on goodwill of changes to net assets acquired during the measurement period, which were not significant to our previously reported operating results or financial condition. (3) The acquisitions of BakerCorp and BlueLine in July 2018 and October 2018, respectively, accounted for most of the 2018 goodwill related to acquisitions. |
Components of intangible assets | Other intangible assets were comprised of the following at December 31, 2020 and 2019: December 31, 2020 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 35 months $ 12 $ 6 $ 6 Customer relationships 6 years $ 2,252 $ 1,614 $ 638 Trade names and associated trademarks 4 years $ 8 $ 4 $ 4 December 31, 2019 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 43 months $ 24 $ 14 $ 10 Customer relationships 7 years $ 2,246 $ 1,364 $ 882 Trade names and associated trademarks 4 years $ 5 $ 2 $ 3 |
Estimated future amortization expense of intangible assets | As of December 31, 2020, estimated amortization expense for other intangible assets for each of the next five years and thereafter was as follows: 2021 $ 206 2022 161 2023 117 2024 75 2025 50 Thereafter 39 Total $ 648 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other liabilities | Accrued expenses and other liabilities consist of the following: December 31, 2020 2019 Self-insurance accruals $ 54 $ 59 Accrued compensation and benefit costs 79 86 Property and income taxes payable 45 26 Restructuring reserves (1) 19 20 Interest payable 133 142 Deferred revenue (2) 51 55 National accounts accrual 84 87 Operating lease liability 178 178 Other (3) 77 94 Accrued expenses and other liabilities $ 720 $ 747 _________________ (1) Primarily relates to branch closure charges and severance costs. See note 5 for additional detail. (2) Reflects amounts billed to customers in excess of recognizable revenue. See note 3 for additional detail. |
Summary of other long-term liabilities | Other long-term liabilities consist of the following: December 31, 2020 2019 Self-insurance accruals $ 73 $ 62 Income taxes payable 5 14 Accrued compensation and benefit costs 60 15 Other long-term liabilities $ 138 $ 91 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of the fair value of financial instruments | The estimated fair values of our other financial instruments, all of which are categorized in Level 1 of the fair value hierarchy, as of December 31, 2020 and 2019 have been calculated based upon available market information, and were as follows: December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Senior notes $ 6,965 $ 7,470 $ 7,755 $ 8,176 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt instruments | Debt, net of unamortized original issue premiums and unamortized debt issuance costs, consists of the following: December 31, 2020 2019 Accounts receivable securitization facility expiring 2021 (1) $ 634 $ 929 $3.75 billion ABL facility expiring 2024 (1) (2) 977 1,638 Term loan facility expiring 2025 (1) 971 979 5 1 / 2 percent Senior Notes due 2025 (3) — 795 4 5 / 8 percent Senior Notes due 2025 (3) — 742 5 7 / 8 percent Senior Notes due 2026 999 999 6 1 / 2 percent Senior Notes due 2026 (3) — 1,089 5 1 / 2 percent Senior Notes due 2027 994 992 3 7 / 8 percent Senior Secured Notes due 2027 742 741 4 7 / 8 percent Senior Notes due 2028 (4) 1,654 1,652 4 7 / 8 percent Senior Notes due 2028 (4) 4 4 5 1 / 4 percent Senior Notes due 2030 742 741 4 percent Senior Notes due 2030 (5) 742 — 3 7 / 8 percent Senior Notes due 2031 (6) 1,088 — Finance leases 135 127 Total debt 9,682 11,428 Less short-term portion (704) (997) Total long-term debt $ 8,978 $ 10,431 (1) The table below presents financial information associated with our variable rate indebtedness as of and for the year ended December 31, 2020. We have borrowed the full available amount under the term loan facility. The principal obligation under the term loan facility is required to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent per annum, with the balance due at the maturity of the facility. The average amount of debt outstanding under the term loan facility decreases slightly each quarter due to the requirement to repay a portion of the principal obligation. ABL facility Accounts receivable securitization facility Term loan facility Borrowing capacity, net of letters of credit $ 2,705 $ 166 $ — Letters of credit 60 Interest rate at December 31, 2020 1.4 % 1.5 % 1.9 % Average month-end debt outstanding 794 667 983 Weighted-average interest rate on average debt outstanding 1.9 % 1.8 % 2.2 % Maximum month-end debt outstanding 1,494 811 988 (2) The decrease in the outstanding debt under the ABL facility since December 31, 2019 primarily reflects the use of proceeds from operations to reduce borrowings under the ABL facility. As discussed above, disciplined management of capital expenditures and fleet capacity is a component of our COVID-19 response plan, and, in 2020, capital expenditures decreased significantly year-over-year. The decreased capital expenditures contributed to our ability to use proceeds from operations to reduce borrowings under the ABL facility. (3) URNA redeemed all of its 5 1 / 2 percent Senior Notes due 2025 and 6 1 / 2 percent Senior Notes due 2026 in August 2020, and redeemed all of its 4 5 / 8 percent Senior Notes due 2025 in October 2020. During the year ended December 31, 2020, we recognized an aggregate debt redemption loss, in interest expense, net in our consolidated statement of income, of $183 (comprised of $27, $132 and $24 for the 5 1 / 2 percent Senior Notes due 2025, 6 1 / 2 percent Senior Notes due 2026 and 4 5 / 8 percent Senior Notes due 2025, respectively). The loss reflects the difference between the net carrying amount and the total purchase price of the redeemed notes. Prior to redeeming the notes, we considered the impact of COVID-19 on liquidity, and assessed our available sources and anticipated uses of cash, including, with respect to sources, cash generated from operations and from the sale of rental equipment. (4) URNA separately issued 4 7 / 8 percent Senior Notes in August 2017 and in September 2017. Following the issuances, we consummated an exchange offer pursuant to which most of the 4 7 / 8 percent Senior Notes issued in September 2017 were exchanged for additional notes fungible with the 4 7 / 8 percent Senior Notes issued in August 2017. (5) In February 2020, URNA issued $750 aggregate principal amount of 4 percent Notes due 2030. See below for additional detail on the issued debt. (6) In August 2020, URNA issued $1.100 billion aggregate principal amount of 3 7 / 8 percent Senior Notes due 2031. See below for additional detail on the issued debt. |
Schedule of the maturities of debt | Debt maturities (exclusive of any unamortized original issue premiums and unamortized debt issuance costs) for each of the next five years and thereafter at December 31, 2020 are as follows: 2021 $ 704 2022 47 2023 36 2024 1,004 2025 939 Thereafter 7,025 Total $ 9,755 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Assets and liabilities, lessee | The tables below present financial information associated with our leases. This information is only presented as of, and for the years ended, December 31, 2020 and December 31, 2019 because, as noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption. Classification December 31, 2020 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 688 $ 669 Finance lease assets Rental equipment 295 286 Less accumulated depreciation (86) (89) Rental equipment, net 209 197 Property and equipment, net: Non-rental vehicles 8 8 Buildings 19 18 Less accumulated depreciation and amortization (11) (15) Property and equipment, net 16 11 Total leased assets 913 877 Liabilities Current Operating Accrued expenses and other liabilities 178 178 Finance Short-term debt and current maturities of long-term debt 60 58 Long-term Operating Operating lease liabilities 549 533 Finance Long-term debt 75 69 Total lease liabilities $ 862 $ 838 |
Lease, cost | Lease cost Classification Year Ended December 31, 2020 Year Ended December 31, 2019 Operating lease cost (1) Cost of equipment rentals, excluding depreciation (1) $ 366 $ 370 Selling, general and administrative expenses 10 10 Restructuring charge 9 16 Finance lease cost Amortization of leased assets Depreciation of rental equipment 31 28 Non-rental depreciation and amortization 1 2 Interest on lease liabilities Interest expense, net 5 6 Sublease income (2) (142) (157) Net lease cost $ 280 $ 275 _________________ (1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the years ended December 31, 2020 and 2019 includes $124 and $142, respectively, of short-term lease costs associated with equipment that we rent from vendors and then rent to our customers, as discussed further above. Apart from these costs, short-term lease costs are immaterial. (2) Primarily reflects re-rent revenue as discussed further above. Lease term and discount rate December 31, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating leases 5.0 4.8 Finance leases 3.0 3.2 Weighted-average discount rate Operating leases 4.2 % 4.7 % Finance leases 3.4 % 4.0 % Other information Year Ended December 31, 2020 Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 207 $ 202 Operating cash flows from finance leases 5 6 Financing cash flows from finance leases 53 47 Leased assets obtained in exchange for new operating lease liabilities 202 201 Leased assets obtained in exchange for new finance lease liabilities $ 64 $ 55 |
Finance lease, liability, maturity | Maturity of lease liabilities (as of December 31, 2020) Operating leases (1) Finance leases (2) 2021 $ 205 $ 63 2022 176 40 2023 144 28 2024 112 10 2025 76 1 Thereafter 113 3 Total 826 145 Less amount representing interest (99) (10) Present value of lease liabilities $ 727 $ 135 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of December 31, 2020. The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. (2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. |
Lessee, operating lease, liability, maturity | Maturity of lease liabilities (as of December 31, 2020) Operating leases (1) Finance leases (2) 2021 $ 205 $ 63 2022 176 40 2023 144 28 2024 112 10 2025 76 1 Thereafter 113 3 Total 826 145 Less amount representing interest (99) (10) Present value of lease liabilities $ 727 $ 135 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of December 31, 2020. The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. (2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. |
Schedule of capital leased assets | The following table presents historic financial statement information for our leases (accounted for under Topic 840) for the year ended December 31, 2018: Capital leases Depreciation of rental equipment $ 22 Non-rental depreciation and amortization 1 Operating leases Rent expense on non-cancelable leases (1) $ 179 _________________ (1) Rent expense on non-cancelable operating leases does not include short-term lease costs associated with equipment that we rent from vendors and then rent to our customers (which is a component of the 2020 and 2019 operating lease costs under Topic 842 as reflected in the table above). Under Topic 840, rental payments under leases with terms of a month or less that were not renewed are not included in rent expense, and we excluded such expenses because of the short-term duration of |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of the components of the provision (benefit) for income taxes | The components of the provision (benefit) for income taxes for each of the three years in the period ended December 31, 2020 are as follows: Year ended December 31, 2020 2019 2018 Current Federal $ 290 $ 97 $ 47 Foreign 15 (6) 18 State and local 65 45 58 370 136 123 Deferred Federal (107) 185 243 Foreign 6 14 3 State and local (20) 5 11 (121) 204 257 Total $ 249 $ 340 $ 380 |
Schedule of effective income tax rate reconciliation | A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rate of 21 percent to the income before provision (benefit) for income taxes for each of the three years in the period ended December 31, 2020 is as follows: Year ended December 31, 2020 2019 2018 Computed tax at statutory tax rate $ 239 $ 318 $ 310 State income taxes, net of federal tax benefit 31 43 54 Other permanent items (3) (17) (1) Change in valuation allowance (22) (3) 7 Enactment of the Tax Act (1) — — 6 Foreign tax rate differential 4 (1) 4 Total $ 249 $ 340 $ 380 _________________ (1) The Tax Act was enacted in December 2017 and required (i) the revaluation of our net deferred tax liability based on a U.S. federal tax rate of 21 percent and (ii) a one-time transition tax for deemed repatriation of accumulated undistributed earnings of certain foreign investments. We primarily recognized the accounting for the enactment of the Tax Act upon adoption in 2017, and finalized the accounting in 2018. |
Schedule of deferred tax assets and liabilities | The components of deferred income tax assets (liabilities) are as follows: December 31, 2020 December 31, 2019 Reserves and allowances $ 129 $ 111 Debt cancellation and other 10 8 Net operating loss and credit carryforwards 242 371 Operating lease assets 183 182 Total deferred tax assets 564 672 Less: valuation allowance (1) (21) (43) Total net deferred tax assets 543 629 Property and equipment, including rental equipment (1,962) (2,135) Operating lease liabilities (183) (182) Intangibles (166) (199) Total deferred tax liability (2,311) (2,516) Total net deferred tax liability $ (1,768) $ (1,887) _________________ (1) Relates to foreign tax credits, state net operating loss carryforwards, and state tax credits that may not be realized. All of the remaining valuation allowance for foreign tax credits was released in 2020. |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock option activity | A summary of the transactions within the Company’s stock option plans follows (shares in thousands): Shares Weighted-Average Outstanding at December 31, 2019 37 50.40 Granted — — Exercised (26) 45.88 Canceled (1) 43.63 Outstanding at December 31, 2020 10 61.93 Exercisable at December 31, 2020 10 $ 61.93 The following table presents information associated with stock options as of December 31, 2020 and 2019, and for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Intrinsic value of options outstanding as of December 31 $ 2 $ 4 Intrinsic value of options exercisable as of December 31 2 4 Intrinsic value of options exercised 3 45 13 Weighted-average grant date fair value per option $ — $ — $ — |
Summary of restricted stock units activity | A summary of RSUs granted follows (RSUs in thousands): Year Ended December 31, 2020 2019 2018 RSUs granted 643 456 566 Weighted-average grant date price per unit $ 140.99 $ 124.37 $ 175.79 A summary of RSU activity for the year ended December 31, 2020 follows (RSUs in thousands): Stock Units Weighted-Average Nonvested as of December 31, 2019 461 $ 104.40 Granted 643 140.99 Vested (520) 138.48 Forfeited (67) 135.44 Nonvested as of December 31, 2020 517 $ 164.62 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | First Second Third Fourth Full For the year ended December 31, 2020 (1): Total revenues $ 2,125 $ 1,939 $ 2,187 $ 2,279 $ 8,530 Gross profit 727 701 886 869 3,183 Operating income 358 381 551 510 1,800 Net income (1) 173 212 208 297 890 Earnings per share—basic 2.33 2.94 2.88 4.11 12.24 Earnings per share—diluted (3) 2.33 2.93 2.87 4.09 12.20 For the year ended December 31, 2019 (2): Total revenues $ 2,117 $ 2,290 $ 2,488 $ 2,456 $ 9,351 Gross profit 761 911 1,033 965 3,670 Operating income 368 529 656 599 2,152 Net income (2) 175 270 391 338 1,174 Earnings per share—basic 2.21 3.45 5.10 4.51 15.18 Earnings per share—diluted (3) 2.19 3.44 5.08 4.49 15.11 (1) As discussed in note 12 to our consolidated financial statements, in the fourth quarter of 2020, we redeemed all of our 4 5 / 8 percent Senior Notes due 2025, and recognized a redemption loss of $24 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the redeemed notes. (2) In the fourth quarter of 2019, we issued $750 aggregate principal amount of 3 7 / 8 percent Senior Secured Notes due 2027 and redeemed all of our 4 5 / 8 percent Senior Secured Notes. Upon redemption, we recognized a loss of $29 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the redeemed notes. (3) Diluted earnings per share includes the after-tax impacts of the following: First Second Third Fourth Full For the year ended December 31, 2020: Merger related intangible asset amortization (4) (0.59) (0.59) (0.55) (0.52) (2.22) Impact on depreciation related to acquired fleet and property and equipment (5) (0.03) (0.02) (0.06) 0.04 (0.08) Impact of the fair value mark-up of acquired fleet (6) (0.12) (0.10) (0.12) (0.16) (0.51) Restructuring charge (7) (0.02) (0.04) (0.06) (0.06) (0.18) Asset impairment charge (8) (0.26) — (0.10) — (0.37) Loss on extinguishment of debt securities and amendment of ABL facility (9) — — (1.64) (0.25) (1.88) For the year ended December 31, 2019: Merger related costs (10) $ (0.01) $ — $ — $ — $ (0.01) Merger related intangible asset amortization (4) (0.64) (0.64) (0.63) (0.60) (2.48) Impact on depreciation related to acquired fleet and property and equipment (5) (0.14) (0.12) (0.07) (0.05) (0.39) Impact of the fair value mark-up of acquired fleet (6) (0.25) (0.15) (0.14) (0.16) (0.72) Restructuring charge (7) (0.07) (0.06) (0.02) (0.03) (0.18) Asset impairment charge (8) (0.01) (0.03) (0.02) 0.01 (0.05) Loss on extinguishment of debt securities and amendment of ABL facility (9) — (0.30) — (0.28) (0.58) (4) This reflects the amortization of the intangible assets acquired in the RSC, National Pump, NES, Neff, BakerCorp and BlueLine acquisitions. (5) This reflects the impact of extending the useful lives of equipment acquired in the RSC, NES, Neff, BakerCorp and BlueLine acquisitions, net of the impact of additional depreciation associated with the fair value mark-up of such equipment. (6) This reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment acquired in the RSC, NES, Neff and BlueLine acquisitions and subsequently sold. (7) As discussed in note 5 to our consolidated financial statements, this primarily reflects severance costs and branch closure charges associated with our restructuring programs. (8) This reflects write-offs of leasehold improvements and other fixed assets. As discussed in note 5 to our consolidated financial statements, the 2020 charges primarily reflect the discontinuation of certain equipment programs, and were not related to COVID-19. (9) This primarily reflects the difference between the net carrying amount and the total purchase price of the redeemed notes. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table sets forth the computation of basic and diluted earnings per share (shares in thousands): Year Ended December 31, 2020 2019 2018 Numerator: Net income available to common stockholders $ 890 $ 1,174 $ 1,096 Denominator: Denominator for basic earnings per share—weighted-average common shares 72,658 77,341 82,652 Effect of dilutive securities: Employee stock options 12 114 379 Restricted stock units 259 255 499 Denominator for diluted earnings per share—adjusted weighted-average common shares 72,929 77,710 83,530 Basic earnings per share $ 12.24 $ 15.18 $ 13.26 Diluted earnings per share $ 12.20 $ 15.11 $ 13.12 |
Organization, Description of _2
Organization, Description of Business and Consolidation (Narrative) (Details) | Jul. 31, 2018location |
France, Germany, United Kingdom, and Netherlands | BakerCorp | |
Business Acquisition [Line Items] | |
Number of branch locations | 11 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2020 | Oct. 01, 2019 | |
Property, Plant and Equipment [Line Items] | ||||||
Percentage of fair value in excess of carrying amount | 22.00% | 32.00% | ||||
Advertising reimbursements | $ 22 | $ 49 | $ 41 | |||
Foreign earnings repatriated | $ 135 | |||||
Revenues | Product concentration risk | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of equipment rental revenue | 84.00% | |||||
Revenues | Product concentration risk | Total equipment rentals | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of equipment rental revenue | 77.00% | |||||
Non-compete agreements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Finite lived intangible assets life | 5 years | |||||
Trade names and associated trademarks | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Finite lived intangible assets life | 5 years | |||||
Reporting units excluding Pump Solutions | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of fair value in excess of carrying amount | 42.00% | |||||
Minimum | Customer relationships | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Finite lived intangible assets life | 5 years | |||||
Minimum | Rental equipment, net | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment useful life | 2 years | |||||
Property, plant and equipment salvage value | 0.00% | 0.00% | ||||
Minimum | Property and Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment useful life | 2 years | |||||
Maximum | Customer relationships | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Finite lived intangible assets life | 15 years | |||||
Maximum | Rental equipment, net | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment useful life | 20 years | |||||
Property, plant and equipment salvage value | 10.00% | 10.00% | ||||
Maximum | Property and Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment useful life | 39 years | |||||
BakerCorp | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of fair value in excess of carrying amount | 12.00% |
Revenue Recognition (Revenue su
Revenue Recognition (Revenue summarized by type and applicable accounting standard) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Re-rent revenue | $ 142 | $ 157 | |||||||||
Revenues | $ 2,279 | $ 2,187 | $ 1,939 | $ 2,125 | $ 2,456 | $ 2,488 | $ 2,290 | $ 2,117 | 8,530 | 9,351 | $ 8,047 |
Total equipment rentals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 7,140 | 7,964 | 6,940 | ||||||||
Owned equipment rentals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Owned equipment rentals | 6,056 | 6,777 | |||||||||
Owned equipment rentals | 5,946 | ||||||||||
Re-rent revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Re-rent revenue | 142 | 155 | |||||||||
Re-rent revenue | 138 | ||||||||||
Ancillary and Other Rental Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 506 | 564 | 477 | ||||||||
Other | 436 | 468 | 379 | ||||||||
Revenues | 942 | 1,032 | 856 | ||||||||
Sales of rental equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 858 | 831 | 664 | ||||||||
Sales of new equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 247 | 268 | 208 | ||||||||
Contractor supplies sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 98 | 104 | 91 | ||||||||
Service and other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 187 | 184 | 144 | ||||||||
Topic 842 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6,536 | 7,288 | |||||||||
Topic 842 | Total equipment rentals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6,536 | 7,288 | |||||||||
Topic 842 | Owned equipment rentals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Owned equipment rentals | 6,056 | 6,777 | |||||||||
Topic 842 | Re-rent revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Re-rent revenue | 142 | 155 | |||||||||
Topic 842 | Ancillary and Other Rental Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other | 338 | 356 | |||||||||
Revenues | 338 | 356 | |||||||||
Topic 606 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,994 | 2,063 | 1,676 | ||||||||
Topic 606 | Total equipment rentals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 604 | 676 | 569 | ||||||||
Topic 606 | Ancillary and Other Rental Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 506 | 564 | 477 | ||||||||
Other | 98 | 112 | 92 | ||||||||
Revenues | 604 | 676 | 569 | ||||||||
Topic 606 | Sales of rental equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 858 | 831 | 664 | ||||||||
Topic 606 | Sales of new equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 247 | 268 | 208 | ||||||||
Topic 606 | Contractor supplies sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 98 | 104 | 91 | ||||||||
Topic 606 | Service and other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | $ 187 | $ 184 | 144 | ||||||||
Topic 840 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6,371 | ||||||||||
Topic 840 | Total equipment rentals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6,371 | ||||||||||
Topic 840 | Owned equipment rentals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Owned equipment rentals | 5,946 | ||||||||||
Topic 840 | Re-rent revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Re-rent revenue | 138 | ||||||||||
Topic 840 | Ancillary and Other Rental Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Other | 287 | ||||||||||
Revenues | $ 287 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue | $ 51 | $ 55 | |
Accounts receivable, net | 1,315 | 1,530 | |
Accounts receivable, allowance for doubtful accounts | 108 | 103 | |
Provision for doubtful accounts | 9 | ||
Contract with customer, asset, after allowance for credit loss | 0 | ||
Contract with customer, liability, revenue recognized | 0 | 0 | |
Contract with customer, performance obligation satisfied in previous period | $ 0 | $ 0 | |
Product concentration risk | Revenues | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 84.00% | ||
Customer concentration risk | Revenues | Largest customer | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 1.00% | 1.00% | 1.00% |
Customer concentration risk | Accounts receivable | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 2.00% | 1.00% | |
Owned Equipment Rentals | Product concentration risk | Revenues | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 71.00% | ||
Total equipment rentals | Product concentration risk | Revenues | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 77.00% | ||
General rentals | Product concentration risk | Revenues | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 79.00% | ||
UNITED STATES | Geographic Concentration Risk | Revenues | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 91.00% |
Revenue Recognition (Allowance
Revenue Recognition (Allowance for Doubtful Accounts Rollforward) (Details) - Allowance for doubtful accounts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 103 | $ 93 | $ 68 |
Acquired | 0 | 2 | 14 |
Charged to costs and expenses | 9 | 8 | 45 |
Charged to revenue | 25 | 34 | 0 |
Deductions | (29) | (34) | (34) |
Ending balance | $ 108 | $ 103 | $ 93 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | Dec. 31, 2020region |
General rentals | |
Segment Reporting Information [Line Items] | |
Number of geographic regions entity operates in | 11 |
Segment Information (Percentage
Segment Information (Percentage of Equipment Rental Revenue by Equipment Type) (Details) - Equipment rental revenue - Product concentration risk | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
General construction and industrial equipment | General rentals | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 43.00% | 43.00% | 44.00% |
Aerial work platforms | General rentals | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 27.00% | 28.00% | 28.00% |
General tools and light equipment | General rentals | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 8.00% | 8.00% | 8.00% |
Power and HVAC equipment | Trench, power and fluid solutions | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 9.00% | 8.00% | 8.00% |
Trench safety equipment | Trench, power and fluid solutions | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 6.00% | 6.00% | 6.00% |
Fluid solutions equipment | Trench, power and fluid solutions | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 7.00% | 7.00% | 6.00% |
Segment Information (Financial
Segment Information (Financial information by segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 2,279 | $ 2,187 | $ 1,939 | $ 2,125 | $ 2,456 | $ 2,488 | $ 2,290 | $ 2,117 | $ 8,530 | $ 9,351 | $ 8,047 |
Depreciation and amortization | 1,988 | 2,038 | 1,671 | ||||||||
Equipment rentals gross profit | 869 | $ 886 | $ 701 | $ 727 | 965 | $ 1,033 | $ 911 | $ 761 | 3,183 | 3,670 | 3,364 |
Capital expenditures | 1,158 | 2,350 | 2,291 | ||||||||
Total assets | 17,868 | 18,970 | 17,868 | 18,970 | 18,133 | ||||||
Equipment rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 7,140 | 7,964 | 6,940 | ||||||||
Sales of rental equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 858 | 831 | 664 | ||||||||
Sales of new equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 247 | 268 | 208 | ||||||||
Contractor supplies sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 98 | 104 | 91 | ||||||||
Service and other revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 187 | 184 | 144 | ||||||||
Equipment rentals gross profit | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equipment rentals gross profit | 2,719 | 3,207 | 2,963 | ||||||||
General rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,699 | 7,436 | 6,550 | ||||||||
Depreciation and amortization | 1,633 | 1,681 | 1,410 | ||||||||
Capital expenditures | 969 | 1,967 | 1,980 | ||||||||
Total assets | 15,051 | 16,036 | 15,051 | 16,036 | 15,597 | ||||||
General rentals | Equipment rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 5,472 | 6,202 | 5,550 | ||||||||
General rentals | Sales of rental equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 785 | 768 | 619 | ||||||||
General rentals | Sales of new equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 214 | 238 | 186 | ||||||||
General rentals | Contractor supplies sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 64 | 71 | 68 | ||||||||
General rentals | Service and other revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 164 | 157 | 127 | ||||||||
General rentals | Equipment rentals gross profit | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equipment rentals gross profit | 1,954 | 2,407 | 2,293 | ||||||||
Trench, power and fluid solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,831 | 1,915 | 1,497 | ||||||||
Depreciation and amortization | 355 | 357 | 261 | ||||||||
Capital expenditures | 189 | 383 | 311 | ||||||||
Total assets | $ 2,817 | $ 2,934 | 2,817 | 2,934 | 2,536 | ||||||
Trench, power and fluid solutions | Equipment rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,668 | 1,762 | 1,390 | ||||||||
Trench, power and fluid solutions | Sales of rental equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 73 | 63 | 45 | ||||||||
Trench, power and fluid solutions | Sales of new equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 33 | 30 | 22 | ||||||||
Trench, power and fluid solutions | Contractor supplies sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 34 | 33 | 23 | ||||||||
Trench, power and fluid solutions | Service and other revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 23 | 27 | 17 | ||||||||
Trench, power and fluid solutions | Equipment rentals gross profit | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equipment rentals gross profit | $ 765 | $ 800 | $ 670 |
Segment Information (Reconcilia
Segment Information (Reconciliation to Consolidated Totals) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross profit | $ 869 | $ 886 | $ 701 | $ 727 | $ 965 | $ 1,033 | $ 911 | $ 761 | $ 3,183 | $ 3,670 | $ 3,364 |
Selling, general and administrative expenses | (979) | (1,092) | (1,038) | ||||||||
Merger related costs | 0 | (1) | (36) | ||||||||
Restructuring charge | (17) | (18) | (31) | ||||||||
Non-rental depreciation and amortization | (387) | (407) | (308) | ||||||||
Interest expense, net | (669) | (648) | (481) | ||||||||
Other income, net | 8 | 10 | 6 | ||||||||
Income before provision (benefit) for income taxes | 1,139 | 1,514 | 1,476 | ||||||||
Equipment rentals | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross profit | 2,719 | 3,207 | 2,963 | ||||||||
Other products and services | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross profit | $ 464 | $ 463 | $ 401 |
Segment Information (Geographic
Segment Information (Geographic Area information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 2,279 | $ 2,187 | $ 1,939 | $ 2,125 | $ 2,456 | $ 2,488 | $ 2,290 | $ 2,117 | $ 8,530 | $ 9,351 | $ 8,047 |
Goodwill and other intangible assets, net | 5,816 | 6,049 | 5,816 | 6,049 | |||||||
Rental equipment, net | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | 8,705 | 9,787 | 8,705 | 9,787 | |||||||
Property and equipment, net | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | 604 | 604 | 604 | 604 | |||||||
Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 7,797 | 8,534 | 7,387 | ||||||||
Goodwill and other intangible assets, net | 5,361 | 5,592 | 5,361 | 5,592 | |||||||
Domestic | Rental equipment, net | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | 7,960 | 8,995 | 7,960 | 8,995 | |||||||
Domestic | Property and equipment, net | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | 558 | 554 | 558 | 554 | |||||||
Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 733 | 817 | 660 | ||||||||
Goodwill and other intangible assets, net | 455 | 457 | 455 | 457 | |||||||
Foreign | Rental equipment, net | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | 745 | 792 | 745 | 792 | |||||||
Foreign | Property and equipment, net | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | $ 46 | $ 50 | 46 | 50 | |||||||
Total equipment rentals | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 7,140 | 7,964 | 6,940 | ||||||||
Total equipment rentals | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 6,543 | 7,283 | 6,388 | ||||||||
Total equipment rentals | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 597 | 681 | 552 | ||||||||
Sales of rental equipment | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 858 | 831 | 664 | ||||||||
Sales of rental equipment | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 784 | 757 | 609 | ||||||||
Sales of rental equipment | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 74 | 74 | 55 | ||||||||
Sales of new equipment | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 247 | 268 | 208 | ||||||||
Sales of new equipment | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 218 | 238 | 184 | ||||||||
Sales of new equipment | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 29 | 30 | 24 | ||||||||
Contractor supplies sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 98 | 104 | 91 | ||||||||
Contractor supplies sales | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 86 | 92 | 80 | ||||||||
Contractor supplies sales | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 12 | 12 | 11 | ||||||||
Service and other revenues | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 187 | 184 | 144 | ||||||||
Service and other revenues | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 166 | 164 | 126 | ||||||||
Service and other revenues | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | $ 21 | $ 20 | $ 18 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairment Charges (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)restructuring_program | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges incurred to date | $ 350 |
Asset impairment charges | $ 36 |
Closed Restructuring Programs | |
Restructuring Cost and Reserve [Line Items] | |
Number of restructuring programs | restructuring_program | 5 |
Restructuring charges incurred to date | $ 334 |
Restructuring reserve | 14 |
Closed Restructuring Programs | Branch closure charges | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges incurred to date | 193 |
Closed Restructuring Programs | Severance and other | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges incurred to date | $ 141 |
Restructuring and Asset Impai_4
Restructuring and Asset Impairment Charges (Schedule of Restructuring Charges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Charged to Costs and Expenses | $ 17 | $ 18 | $ 31 |
Restructuring charges incurred to date | 350 | ||
2020-2021 Cost Savings Restructuring Program | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Reserve Balance | 0 | ||
Charged to Costs and Expenses | 15 | ||
Payments and Other | (10) | ||
Ending Reserve Balance | 5 | 0 | |
Restructuring charges incurred to date | 16 | ||
2020-2021 Cost Savings Restructuring Program | Branch closure charges | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Reserve Balance | 0 | ||
Charged to Costs and Expenses | 7 | ||
Payments and Other | (4) | ||
Ending Reserve Balance | 3 | 0 | |
Restructuring charges incurred to date | 8 | ||
2020-2021 Cost Savings Restructuring Program | Severance and other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Reserve Balance | 0 | ||
Charged to Costs and Expenses | 8 | ||
Payments and Other | (6) | ||
Ending Reserve Balance | 2 | $ 0 | |
Restructuring charges incurred to date | $ 8 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Equipment | $ 300 | $ 0 |
Insurance | 18 | 12 |
Advertising reimbursements | 11 | 27 |
Income taxes | 4 | 51 |
Other | 42 | 50 |
Prepaid expenses and other assets | $ 375 | $ 140 |
Rental Equipment (Details)
Rental Equipment (Details) - Rental equipment, net - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Rental equipment | $ 14,216 | $ 14,852 |
Less accumulated depreciation | (5,511) | (5,065) |
Property and equipment, net | $ 8,705 | $ 9,787 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property and equipment, net | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | $ 1,392 | $ 1,312 |
Less accumulated depreciation and amortization | (788) | (708) |
Property and equipment, net | 604 | 604 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | 111 | 101 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | 215 | 210 |
Non-rental vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | 168 | 168 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | 164 | 157 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | 338 | 328 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | $ 396 | $ 348 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Balance at beginning of period | $ 5,154 | $ 5,058 | $ 4,082 |
Goodwill related to acquisitions | (2) | 83 | 999 |
Foreign currency translation and other adjustments | 16 | 13 | (23) |
Balance at end of period | 5,168 | 5,154 | 5,058 |
Goodwill accumulated impairment loss | 1,557 | 1,557 | 1,557 |
General rentals | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | 4,362 | 4,342 | 3,607 |
Goodwill related to acquisitions | 1 | 10 | 752 |
Foreign currency translation and other adjustments | 5 | 10 | (17) |
Balance at end of period | 4,368 | 4,362 | 4,342 |
Trench, power and fluid solutions | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | 792 | 716 | 475 |
Goodwill related to acquisitions | (3) | 73 | 247 |
Foreign currency translation and other adjustments | 11 | 3 | (6) |
Balance at end of period | $ 800 | $ 792 | $ 716 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total | $ 648 | $ 895 | |
Amortization expense | 250 | 290 | $ 213 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2021 | 206 | ||
2022 | 161 | ||
2023 | 117 | ||
2024 | 75 | ||
2025 | 50 | ||
Thereafter | 39 | ||
Total | $ 648 | $ 895 | |
Non-compete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Amortization Period | 35 months | 43 months | |
Gross Carrying Amount | $ 12 | $ 24 | |
Accumulated Amortization | 6 | 14 | |
Total | 6 | 10 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Total | $ 6 | $ 10 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Amortization Period | 6 years | 7 years | |
Gross Carrying Amount | $ 2,252 | $ 2,246 | |
Accumulated Amortization | 1,614 | 1,364 | |
Total | 638 | 882 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Total | $ 638 | $ 882 | |
Trade names and associated trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Amortization Period | 4 years | 4 years | |
Gross Carrying Amount | $ 8 | $ 5 | |
Accumulated Amortization | 4 | 2 | |
Total | 4 | 3 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Total | $ 4 | $ 3 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued expenses and other liabilities | ||
Self-insurance accruals | $ 54 | $ 59 |
Accrued compensation and benefit costs | 79 | 86 |
Property and income taxes payable | 45 | 26 |
Restructuring reserves | 19 | 20 |
Interest payable | 133 | 142 |
Deferred revenue | 51 | 55 |
National accounts accrual | 84 | 87 |
Operating lease liability | 178 | 178 |
Other | 77 | 94 |
Accrued expenses and other liabilities | 720 | 747 |
Other long-term liabilities | ||
Self-insurance accruals | 73 | 62 |
Income taxes payable | 5 | 14 |
Accrued compensation and benefit costs | 60 | 15 |
Other long-term liabilities | $ 138 | $ 91 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments) (Details) - Senior notes - Level 1 - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument | $ 6,965 | $ 7,755 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument | $ 7,470 | $ 8,176 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | May 31, 2019 | Oct. 31, 2018 | Sep. 30, 2017 | Aug. 31, 2017 | Mar. 01, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | May 31, 2016 | Jun. 30, 2008 | |
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | $ 9,755,000,000 | $ 9,755,000,000 | |||||||||||||||
Finance leases | 135,000,000 | $ 127,000,000 | 135,000,000 | $ 127,000,000 | |||||||||||||
Total debt | 9,682,000,000 | 11,428,000,000 | 9,682,000,000 | 11,428,000,000 | |||||||||||||
Less short-term portion | (704,000,000) | (997,000,000) | (704,000,000) | (997,000,000) | |||||||||||||
Total long-term debt | 8,978,000,000 | 10,431,000,000 | 8,978,000,000 | 10,431,000,000 | |||||||||||||
Loss on extinguishment of debt | 183,000,000 | 61,000,000 | $ 0 | ||||||||||||||
Line of credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||||||||||||||
Accounts receivable securitization facility expiring 2019 | Line of credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | 800,000,000 | 800,000,000 | |||||||||||||||
Long-term debt | 634,000,000 | 929,000,000 | 634,000,000 | 929,000,000 | |||||||||||||
Total debt | 634,000,000 | 634,000,000 | |||||||||||||||
Borrowing capacity, net of letters of credit | $ 166,000,000 | $ 166,000,000 | |||||||||||||||
Interest rate at December 31, 2020 | 1.50% | 1.50% | |||||||||||||||
Average month-end debt outstanding | $ 667,000,000 | ||||||||||||||||
Weighted-average interest rate on average debt outstanding | 1.80% | 1.80% | |||||||||||||||
Maximum month-end debt outstanding | $ 811,000,000 | ||||||||||||||||
$3.75 billion ABL facility expiring 2024 | Line of credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 3,750,000,000 | 3,750,000,000 | $ 1,250,000,000 | ||||||||||||||
Long-term debt | 977,000,000 | 1,638,000,000 | 977,000,000 | 1,638,000,000 | |||||||||||||
Borrowing capacity, net of letters of credit | 2,705,000,000 | 2,705,000,000 | |||||||||||||||
Letters of credit | $ 60,000,000 | $ 60,000,000 | |||||||||||||||
Interest rate at December 31, 2020 | 1.40% | 1.40% | |||||||||||||||
Average month-end debt outstanding | $ 794,000,000 | ||||||||||||||||
Weighted-average interest rate on average debt outstanding | 1.90% | 1.90% | |||||||||||||||
Maximum month-end debt outstanding | $ 1,494,000,000 | ||||||||||||||||
Term loan facility expiring 2025 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | $ 971,000,000 | 979,000,000 | $ 971,000,000 | 979,000,000 | |||||||||||||
Debt repayment installment rate | 1.00% | 1.00% | |||||||||||||||
Term loan facility expiring 2025 | Line of credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Borrowing capacity, net of letters of credit | $ 0 | $ 0 | |||||||||||||||
Interest rate at December 31, 2020 | 1.90% | 1.90% | |||||||||||||||
Average month-end debt outstanding | $ 983,000,000 | ||||||||||||||||
Weighted-average interest rate on average debt outstanding | 2.20% | 2.20% | |||||||||||||||
Maximum month-end debt outstanding | $ 988,000,000 | ||||||||||||||||
5 1/2 percent Senior Notes due 2025 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 5.50% | 5.50% | |||||||||||||||
Long-term debt | $ 0 | 795,000,000 | $ 0 | 795,000,000 | |||||||||||||
Loss on extinguishment of debt | $ 27,000,000 | ||||||||||||||||
4 5/8 Senior Notes due 2025 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 4.625% | 4.625% | |||||||||||||||
Long-term debt | $ 0 | 742,000,000 | $ 0 | 742,000,000 | |||||||||||||
Loss on extinguishment of debt | $ 24,000,000 | $ 24,000,000 | |||||||||||||||
5 7/8 percent Senior Notes due 2026 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 5.875% | 5.875% | |||||||||||||||
Long-term debt | $ 999,000,000 | 999,000,000 | $ 999,000,000 | 999,000,000 | |||||||||||||
6 1/2 percent Senior Notes due 2026 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 6.50% | 6.50% | |||||||||||||||
Long-term debt | $ 0 | 1,089,000,000 | $ 0 | 1,089,000,000 | |||||||||||||
Loss on extinguishment of debt | $ 132,000,000 | ||||||||||||||||
5 1/2 percent Senior Notes due 2027 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 5.50% | 5.50% | |||||||||||||||
Long-term debt | $ 994,000,000 | 992,000,000 | $ 994,000,000 | 992,000,000 | |||||||||||||
3 7/8 percent Senior Secured Notes due 2027 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 3.875% | 3.875% | 3.875% | ||||||||||||||
Long-term debt | $ 742,000,000 | 741,000,000 | $ 742,000,000 | 741,000,000 | |||||||||||||
Loss on extinguishment of debt | 29,000,000 | ||||||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 4.875% | 4.875% | |||||||||||||||
Long-term debt | $ 1,654,000,000 | 1,652,000,000 | $ 1,654,000,000 | 1,652,000,000 | |||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 4.875% | 4.875% | |||||||||||||||
Long-term debt | $ 4,000,000 | 4,000,000 | $ 4,000,000 | 4,000,000 | |||||||||||||
5 1/4 percent Senior Notes due 2030 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 5.25% | 5.25% | |||||||||||||||
Long-term debt | $ 742,000,000 | 741,000,000 | $ 742,000,000 | 741,000,000 | |||||||||||||
4 percent Senior Notes due 2030 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 4.00% | 4.00% | |||||||||||||||
Long-term debt | $ 742,000,000 | 0 | $ 742,000,000 | 0 | |||||||||||||
3 7/8 percent Senior Notes due 2031 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 3.875% | 3.875% | |||||||||||||||
Long-term debt | $ 1,088,000,000 | 0 | $ 1,088,000,000 | 0 | |||||||||||||
Subsidiaries | 5 7/8 percent Senior Notes due 2026 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 250,000,000 | $ 750,000,000 | |||||||||||||||
Subsidiaries | 5 1/2 percent Senior Notes due 2027 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | $ 250,000,000 | $ 750,000,000 | ||||||||||||||
Subsidiaries | 3 7/8 percent Senior Secured Notes due 2027 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | ||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | 1,669,000,000 | 1,669,000,000 | |||||||||||||||
Debt instrument, face amount | $ 925,000,000 | ||||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | $ 4,000,000 | $ 4,000,000 | |||||||||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||||||||||
Subsidiaries | 5 1/4 percent Senior Notes due 2030 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||||||||||
Subsidiaries | 4 percent Senior Notes due 2030 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 4.00% | ||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||||||||||
Subsidiaries | 3 7/8 percent Senior Notes due 2031 | Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 1,100,000,000 |
Debt (Short Term Debt Narrative
Debt (Short Term Debt Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 9,682,000,000 | $ 11,428,000,000 |
Line of credit | Accounts receivable securitization facility expiring 2019 | ||
Short-term Debt [Line Items] | ||
Short-term debt | 634,000,000 | |
Maximum borrowing capacity | $ 800,000,000 | |
Extension period | 364 days | |
Collateral amount | $ 922,000,000 |
Debt (Long Term Debt Narrative)
Debt (Long Term Debt Narrative) (Details) - USD ($) | 1 Months Ended | 4 Months Ended | 10 Months Ended | 12 Months Ended | ||||||||||||
Aug. 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | May 31, 2019 | Sep. 30, 2017 | Aug. 31, 2017 | Jun. 30, 2008 | Feb. 28, 2017 | Feb. 28, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2018 | Dec. 31, 2017 | Mar. 01, 2017 | Nov. 30, 2016 | May 31, 2016 | |
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 9,755,000,000 | |||||||||||||||
Line of credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||||||||||
$3.75 billion ABL facility expiring 2024 | Line of credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, term | 5 years | |||||||||||||||
Maximum borrowing capacity | $ 1,250,000,000 | 3,750,000,000 | ||||||||||||||
Long-term debt | $ 977,000,000 | $ 1,638,000,000 | ||||||||||||||
Debt instrument, covenant terms, fixed charge percentage | 10.00% | |||||||||||||||
Term loan facility expiring 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, annual repayment rate | 1.00% | |||||||||||||||
Long-term debt | $ 971,000,000 | 979,000,000 | ||||||||||||||
5 7/8 percent Senior Notes due 2026 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 999,000,000 | 999,000,000 | ||||||||||||||
Stated interest rate | 5.875% | |||||||||||||||
5 1/2 percent Senior Notes due 2027 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 994,000,000 | 992,000,000 | ||||||||||||||
Stated interest rate | 5.50% | |||||||||||||||
3 7/8 percent Senior Secured Notes due 2027 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 742,000,000 | 741,000,000 | ||||||||||||||
Stated interest rate | 3.875% | 3.875% | ||||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 1,654,000,000 | 1,652,000,000 | ||||||||||||||
Stated interest rate | 4.875% | |||||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 4,000,000 | 4,000,000 | ||||||||||||||
Stated interest rate | 4.875% | |||||||||||||||
5 1/4 percent Senior Notes due 2030 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 742,000,000 | 741,000,000 | ||||||||||||||
Stated interest rate | 5.25% | |||||||||||||||
4 percent Senior Notes due 2030 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 742,000,000 | 0 | ||||||||||||||
Stated interest rate | 4.00% | |||||||||||||||
3 7/8 percent Senior Notes due 2031 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 1,088,000,000 | 0 | ||||||||||||||
Stated interest rate | 3.875% | |||||||||||||||
London Interbank Offered Rate (LIBOR) | Term loan facility expiring 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 1.75% | |||||||||||||||
Base Rate | Term loan facility expiring 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||||||||||||
Subsidiaries | 5 7/8 percent Senior Notes due 2026 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 250,000,000 | $ 250,000,000 | $ 750,000,000 | |||||||||||||
Outstanding principal amount of debt | $ 1,000,000,000 | |||||||||||||||
Proceeds from debt, net of issuance costs | $ 999,000,000 | |||||||||||||||
Debt instrument, unamortized premium | $ 8,000,000 | |||||||||||||||
Effective interest rate | 5.70% | |||||||||||||||
Subsidiaries | 5 7/8 percent Senior Notes due 2026 | Senior notes | Period commencing in 2021 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 102.938% | |||||||||||||||
Subsidiaries | 5 7/8 percent Senior Notes due 2026 | Senior notes | Period commencing in 2024 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100.00% | |||||||||||||||
Subsidiaries | 5 7/8 percent Senior Notes due 2026 | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101.00% | |||||||||||||||
Subsidiaries | 5 1/2 percent Senior Notes due 2027 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | 250,000,000 | $ 250,000,000 | $ 1,000,000,000 | $ 750,000,000 | ||||||||||||
Proceeds from debt, net of issuance costs | $ 991,000,000 | |||||||||||||||
Debt instrument, unamortized premium | $ 2,000,000 | |||||||||||||||
Effective interest rate | 5.50% | |||||||||||||||
Subsidiaries | 5 1/2 percent Senior Notes due 2027 | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101.00% | |||||||||||||||
Subsidiaries | 5 1/2 percent Senior Notes due 2027 | Senior notes | Period commencing in 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 102.75% | |||||||||||||||
Subsidiaries | 5 1/2 percent Senior Notes due 2027 | Senior notes | Period commencing in 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100.00% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Secured Notes due 2027 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | $ 750,000,000 | ||||||||||||||
Proceeds from debt, net of issuance costs | $ 741,000,000 | |||||||||||||||
Debt redemption percentage | 40.00% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Secured Notes due 2027 | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101.00% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Secured Notes due 2027 | Senior notes | Period commencing in 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101.938% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Secured Notes due 2027 | Senior notes | Period commencing in 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100.00% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Secured Notes due 2027 | Senior notes | On or prior to January 15, 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 103.875% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 925,000,000 | |||||||||||||||
Proceeds from debt, net of issuance costs | $ 913,000,000 | |||||||||||||||
Debt instrument, unamortized premium | $ 1,000,000 | |||||||||||||||
Effective interest rate | 4.86% | |||||||||||||||
Amount exchanged for equivalent notes | $ 744,000,000 | |||||||||||||||
Long-term debt | $ 1,669,000,000 | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101.00% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | Period commencing in 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 102.438% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | Period commencing in 2026 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100.00% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||||||
Proceeds from debt, net of issuance costs | $ 743,000,000 | |||||||||||||||
Effective interest rate | 4.84% | |||||||||||||||
Long-term debt | $ 4,000,000 | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101.00% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | Period commencing in 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 102.438% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | Period commencing in 2026 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100.00% | |||||||||||||||
Subsidiaries | 5 1/4 percent Senior Notes due 2030 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||||||
Proceeds from debt, net of issuance costs | $ 741,000,000 | |||||||||||||||
Debt redemption percentage | 101.00% | |||||||||||||||
Debt redemption percentage of principal amount redeemed | 40.00% | |||||||||||||||
Subsidiaries | 5 1/4 percent Senior Notes due 2030 | Senior notes | Period commencing in 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 102.625% | |||||||||||||||
Subsidiaries | 5 1/4 percent Senior Notes due 2030 | Senior notes | Period commencing in 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100.00% | |||||||||||||||
Subsidiaries | 5 1/4 percent Senior Notes due 2030 | Senior notes | On or prior to January 15, 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 105.25% | |||||||||||||||
Subsidiaries | 4 percent Senior Notes due 2030 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||||||
Proceeds from debt, net of issuance costs | $ 741,000,000 | |||||||||||||||
Debt redemption percentage | 101.00% | |||||||||||||||
Debt redemption percentage of principal amount redeemed | 40.00% | |||||||||||||||
Stated interest rate | 4.00% | |||||||||||||||
Subsidiaries | 4 percent Senior Notes due 2030 | Senior notes | Period commencing in 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 102.00% | |||||||||||||||
Subsidiaries | 4 percent Senior Notes due 2030 | Senior notes | Period commencing in 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100.00% | |||||||||||||||
Subsidiaries | 4 percent Senior Notes due 2030 | Senior notes | On or prior to January 15, 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 104.00% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Notes due 2031 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 1,100,000,000 | |||||||||||||||
Proceeds from debt, net of issuance costs | $ 1,087,000,000 | |||||||||||||||
Debt redemption percentage | 101.00% | |||||||||||||||
Debt redemption percentage of principal amount redeemed | 40.00% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Notes due 2031 | Senior notes | Period commencing in 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101.938% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Notes due 2031 | Senior notes | Period commencing in 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100.00% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Notes due 2031 | Senior notes | On or prior to January 15, 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 103.875% |
Debt (Schedule of Debt Maturity
Debt (Schedule of Debt Maturity) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Maturity profile: | |
2021 | $ 704 |
2022 | 47 |
2023 | 36 |
2024 | 1,004 |
2025 | 939 |
Thereafter | 7,025 |
Total | $ 9,755 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Revenues | Product concentration risk | ||
Lessee, Lease, Description [Line Items] | ||
Percentage of equipment rental revenue | 84.00% | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, renewal term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, renewal term | 5 years |
Leases (Summary of Financial In
Leases (Summary of Financial Information Associated with Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Operating lease right-of-use assets | $ 688 | $ 669 |
Total leased assets | 913 | 877 |
Current | ||
Accrued expenses and other liabilities | 178 | 178 |
Short-term debt and current maturities of long-term debt | 60 | 58 |
Long-term | ||
Operating lease liabilities | 549 | 533 |
Long-term debt | 75 | 69 |
Total lease liabilities | 862 | 838 |
Rental equipment, net | ||
Assets | ||
Finance lease, right-of-use asset, before accumulated amortization | 295 | 286 |
Accumulated depreciation | (86) | (89) |
Finance lease, right-of-use asset | 209 | 197 |
Property and equipment, net | ||
Assets | ||
Accumulated depreciation | (11) | (15) |
Finance lease, right-of-use asset | 16 | 11 |
Non-rental vehicles | ||
Assets | ||
Finance lease, right-of-use asset, before accumulated amortization | 8 | 8 |
Buildings | ||
Assets | ||
Finance lease, right-of-use asset, before accumulated amortization | $ 19 | $ 18 |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Sublease income | $ (142) | $ (157) |
Net lease cost | 280 | 275 |
Short-term lease, cost | 124 | 142 |
Cost of equipment rentals, excluding depreciation | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 366 | 370 |
Selling, general and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 10 | 10 |
Restructuring charge | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 9 | 16 |
Depreciation of rental equipment | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease cost | 31 | 28 |
Non-rental depreciation and amortization | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease cost | 1 | 2 |
Interest expense, net | ||
Lessee, Lease, Description [Line Items] | ||
Interest on lease liabilities | $ 5 | $ 6 |
Leases (Maturity of Lease Liabi
Leases (Maturity of Lease Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating leases | ||
2021 | $ 205 | |
2022 | 176 | |
2023 | 144 | |
2024 | 112 | |
2025 | 76 | |
Thereafter | 113 | |
Total lease payments | 826 | |
Less amount representing interest | (99) | |
Present value of lease liabilities | 727 | |
Finance leases | ||
2021 | 63 | |
2022 | 40 | |
2023 | 28 | |
2024 | 10 | |
2025 | 1 | |
Thereafter | 3 | |
Total lease payments | 145 | |
Less amount representing interest | (10) | |
Present value of lease liabilities | $ 135 | $ 127 |
Leases (Lease Term and Discount
Leases (Lease Term and Discount Rate) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Weighted-average remaining lease term (years) | ||
Operating leases | 5 years | 4 years 9 months 18 days |
Finance leases | 3 years | 3 years 2 months 12 days |
Weighted-average discount rate | ||
Operating leases | 4.20% | 4.70% |
Finance leases | 3.40% | 4.00% |
Leases (Other Information) (Det
Leases (Other Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 207 | $ 202 |
Operating cash flows from finance leases | 5 | 6 |
Financing cash flows from finance leases | 53 | 47 |
Leased assets obtained in exchange for new operating lease liabilities | 202 | 201 |
Leased assets obtained in exchange for new finance lease liabilities | $ 64 | $ 55 |
Leases (Capital Lease Obligatio
Leases (Capital Lease Obligations) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Operating Leased Assets [Line Items] | |
Rent expense on non-cancelable leases | $ 179 |
Rental equipment, net | |
Operating Leased Assets [Line Items] | |
Depreciation and amortization | 22 |
Rent expense on short term non-cancelable leases | 121 |
Non-rental depreciation and amortization | |
Operating Leased Assets [Line Items] | |
Depreciation and amortization | $ 1 |
Income Taxes (Components of inc
Income Taxes (Components of income tax expense and reconciliation of effective tax rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | |||
Federal | $ 290 | $ 97 | $ 47 |
Foreign | 15 | (6) | 18 |
State and local | 65 | 45 | 58 |
Current income tax expense | 370 | 136 | 123 |
Deferred | |||
Federal | (107) | 185 | 243 |
Foreign | 6 | 14 | 3 |
State and local | (20) | 5 | 11 |
Deferred income tax expense (benefit) | (121) | 204 | 257 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Computed tax at statutory tax rate | 239 | 318 | 310 |
State income taxes, net of federal tax benefit | 31 | 43 | 54 |
Other permanent items | (3) | (17) | (1) |
Change in valuation allowance | (22) | (3) | 7 |
Enactment of the Tax Act | 0 | 0 | 6 |
Foreign tax rate differential | 4 | (1) | 4 |
Total | $ 249 | $ 340 | $ 380 |
Income Taxes (Components of def
Income Taxes (Components of deferred tax assets and liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Reserves and allowances | $ 129 | $ 111 |
Debt cancellation and other | 10 | 8 |
Net operating loss and credit carryforwards | 242 | 371 |
Operating lease assets | 183 | 182 |
Total deferred tax assets | 564 | 672 |
Valuation allowance | (21) | (43) |
Total net deferred tax assets | 543 | 629 |
Property and equipment, including rental equipment | (1,962) | (2,135) |
Operating lease liabilities | (183) | (182) |
Intangibles | (166) | (199) |
Total deferred tax liability | (2,311) | (2,516) |
Total net deferred tax liability | $ (1,768) | $ (1,887) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Income before income taxes, foreign | $ 83 | $ 62 | $ 71 | |
Foreign earnings repatriated | $ 135 | |||
Undistributed earnings of foreign subsidiaries amount | 840 | 840 | ||
Federal Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 759 | 759 | ||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 744 | 744 | ||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 3 | $ 3 |
Commitments and Contingencies (
Commitments and Contingencies (Employee Benefits Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)plans | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Number of defined contribution 401 (k) plans | plans | 2 | ||
Defined contribution plan, contributions | $ | $ 33 | $ 37 | $ 31 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | |
Class of Stock [Line Items] | |||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Employee stock option | |||
Class of Stock [Line Items] | |||
Common stock, capital shares reserved for future issuance (in shares) | 0 | 0 | |
Restricted Stock Units (RSUs) | |||
Class of Stock [Line Items] | |||
Restricted stock units outstanding (in shares) | 800,000 | ||
Share conversion ratio | 1 | ||
Shares issued for RSUs (in shares) | 360,000 | ||
Shares paid for tax withholding (in shares) | 207,000 | ||
Compensation expense not yet recognized | $ | $ 49 | ||
Compensation expense not yet recognized, period for recognition | 2 years | ||
Fair value of RSUs vested during the period | $ | $ 75 | $ 80 | $ 114 |
Time-based Restricted Stock Units | |||
Class of Stock [Line Items] | |||
Vesting period | 3 years | ||
Vesting period, start duration from grant date | 12 months | ||
2010 Long Term Incentive Plan | |||
Class of Stock [Line Items] | |||
Shares available for grant (in shares) | 2,000,000 |
Common Stock (Schedule of Stock
Common Stock (Schedule of Stock Option Activity) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Shares | |
Outstanding at beginning of period (in shares) | shares | 37 |
Granted (in shares) | shares | 0 |
Exercised (shares) | shares | (26) |
Canceled (in shares) | shares | (1) |
Outstanding at end of period (in shares) | shares | 10 |
Exercisable (in shares) | shares | 10 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 50.40 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 45.88 |
Canceled (in dollars per share) | $ / shares | 43.63 |
Outstanding at end of period (in dollars per share) | $ / shares | 61.93 |
Exercisable (in dollars per share) | $ / shares | $ 61.93 |
Common Stock (Schedule of Intri
Common Stock (Schedule of Intrinsic Value of Options Exercised) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Intrinsic value of options outstanding as of December 31 | $ 2 | $ 4 | |
Intrinsic value of options exercisable as of December 31 | 2 | 4 | |
Intrinsic value of options exercised | $ 3 | $ 45 | $ 13 |
Weighted-average grant date fair value per option (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common Stock (Schedule of Restr
Common Stock (Schedule of Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Units | |||
Nonvested as of December 31, 2019 (in shares) | 461 | ||
Granted (in shares) | 643 | 456 | 566 |
Vested (in shares) | (520) | ||
Forfeited (in shares) | (67) | ||
Nonvested as of December 31, 2020 (in shares) | 517 | 461 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested as of December 31, 2019 (in dollars per share) | $ 104.40 | ||
Granted (in dollars per share) | 140.99 | $ 124.37 | $ 175.79 |
Vested (in dollars per share) | 138.48 | ||
Forfeited (in dollars per share) | 135.44 | ||
Nonvested as of December 31, 2020 (in dollars per share) | $ 164.62 | $ 104.40 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2019 | |
Selected Quarterly Financial Information [Abstract] | ||||||||||||
Revenues | $ 2,279,000,000 | $ 2,187,000,000 | $ 1,939,000,000 | $ 2,125,000,000 | $ 2,456,000,000 | $ 2,488,000,000 | $ 2,290,000,000 | $ 2,117,000,000 | $ 8,530,000,000 | $ 9,351,000,000 | $ 8,047,000,000 | |
Gross profit | 869,000,000 | 886,000,000 | 701,000,000 | 727,000,000 | 965,000,000 | 1,033,000,000 | 911,000,000 | 761,000,000 | 3,183,000,000 | 3,670,000,000 | 3,364,000,000 | |
Operating income | 510,000,000 | 551,000,000 | 381,000,000 | 358,000,000 | 599,000,000 | 656,000,000 | 529,000,000 | 368,000,000 | 1,800,000,000 | 2,152,000,000 | 1,951,000,000 | |
Net income | $ 297,000,000 | $ 208,000,000 | $ 212,000,000 | $ 173,000,000 | $ 338,000,000 | $ 391,000,000 | $ 270,000,000 | $ 175,000,000 | $ 890,000,000 | $ 1,174,000,000 | $ 1,096,000,000 | |
Earnings per share - basic (in dollars per share) | $ 4.11 | $ 2.88 | $ 2.94 | $ 2.33 | $ 4.51 | $ 5.10 | $ 3.45 | $ 2.21 | $ 12.24 | $ 15.18 | $ 13.26 | |
Earnings per share - diluted (in dollars per share) | 4.09 | 2.87 | 2.93 | 2.33 | 4.49 | 5.08 | 3.44 | 2.19 | $ 12.20 | $ 15.11 | $ 13.12 | |
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Loss on extinguishment of debt | $ 183,000,000 | $ 61,000,000 | $ 0 | |||||||||
Earnings Per Share, Diluted, Other Disclosures [Abstract] | ||||||||||||
Merger related costs (in dollars per share) | 0 | 0 | 0 | (0.01) | $ (0.01) | |||||||
Merger related intangible asset amortization (in dollars per share) | (0.52) | (0.55) | (0.59) | (0.59) | (0.60) | (0.63) | (0.64) | (0.64) | $ (2.22) | (2.48) | ||
Impact on depreciation related to acquired fleet and property and equipment (in dollars per share) | 0.04 | (0.06) | (0.02) | (0.03) | (0.05) | (0.07) | (0.12) | (0.14) | (0.08) | (0.39) | ||
Impact of the fair value mark-up of acquired fleet (in dollars per share) | (0.16) | (0.12) | (0.10) | (0.12) | (0.16) | (0.14) | (0.15) | (0.25) | (0.51) | (0.72) | ||
Restructuring charge (in dollars per share) | (0.06) | (0.06) | (0.04) | (0.02) | (0.03) | (0.02) | (0.06) | (0.07) | (0.18) | (0.18) | ||
Asset impairment charge (in dollars per share) | 0 | (0.10) | 0 | (0.26) | 0.01 | (0.02) | (0.03) | (0.01) | (0.37) | (0.05) | ||
Loss on extinguishment of debt securities and amendment of ABL facility (in dollars per share) | $ (0.25) | $ (1.64) | $ 0 | $ 0 | $ (0.28) | $ 0 | $ (0.30) | $ 0 | $ (1.88) | $ (0.58) | ||
Senior notes | 4 5/8 Senior Notes due 2025 | ||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Loss on extinguishment of debt | $ 24,000,000 | $ 24,000,000 | ||||||||||
Senior notes | 3 7/8 percent Senior Secured Notes due 2027 | ||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Loss on extinguishment of debt | $ 29,000,000 | |||||||||||
Senior notes | 3 7/8 percent Senior Secured Notes due 2027 | Subsidiaries | ||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Debt instrument, face amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||||||||||
Net income available to common stockholders | $ 890 | $ 1,174 | $ 1,096 | ||||||||
Denominator: | |||||||||||
Denominator for basic earnings per share—weighted-average common shares (in shares) | 72,658 | 77,341 | 82,652 | ||||||||
Effect of dilutive securities: | |||||||||||
Denominator for diluted earnings per share—adjusted weighted-average common shares (in shares) | 72,929 | 77,710 | 83,530 | ||||||||
Basic earnings per share (in dollars per share) | $ 4.11 | $ 2.88 | $ 2.94 | $ 2.33 | $ 4.51 | $ 5.10 | $ 3.45 | $ 2.21 | $ 12.24 | $ 15.18 | $ 13.26 |
Diluted earnings per share (in dollars per share) | $ 4.09 | $ 2.87 | $ 2.93 | $ 2.33 | $ 4.49 | $ 5.08 | $ 3.44 | $ 2.19 | $ 12.20 | $ 15.11 | $ 13.12 |
Employee stock option | |||||||||||
Effect of dilutive securities: | |||||||||||
Share-based payment arrangements (in shares) | 12 | 114 | 379 | ||||||||
Restricted stock units | |||||||||||
Effect of dilutive securities: | |||||||||||
Share-based payment arrangements (in shares) | 259 | 255 | 499 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 103 | $ 93 | $ 68 |
Acquired | 0 | 2 | 14 |
Charged to costs and expenses | 9 | 8 | 45 |
Charged to revenue | 25 | 34 | 0 |
Deductions | 29 | 34 | 34 |
Ending balance | 108 | 103 | 93 |
Reserve for obsolescence and shrinkage | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 10 | 5 | 7 |
Acquired | 0 | 4 | 1 |
Charged to costs and expenses | 34 | 40 | 26 |
Charged to revenue | 0 | 0 | 0 |
Deductions | 36 | 39 | 29 |
Ending balance | 8 | 10 | 5 |
Self-insurance reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 121 | 106 | 100 |
Acquired | 0 | 0 | 5 |
Charged to costs and expenses | 169 | 180 | 144 |
Charged to revenue | 0 | 0 | 0 |
Deductions | 163 | 165 | 143 |
Ending balance | $ 127 | $ 121 | $ 106 |