Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 25, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | United Rentals Inc /DE | ||
Entity Central Index Key | 1,067,701 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 90,970,229 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 8,300 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 179 | $ 158 |
Accounts receivable, net of allowance for doubtful accounts of $55 at December 31, 2015 and $43 at December 31, 2014 | 930 | 940 |
Inventory | 69 | 78 |
Prepaid expenses and other assets | 116 | 122 |
Total current assets | 1,294 | 1,298 |
Goodwill | 3,243 | 3,272 |
Other intangible assets, net | 905 | 1,106 |
Other long-term assets | 10 | 7 |
Total assets | 12,083 | 12,129 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Short-term debt and current maturities of long-term debt | 607 | 618 |
Accounts payable | 271 | 285 |
Accrued expenses and other liabilities | 355 | 575 |
Total current liabilities | 1,233 | 1,478 |
Long-term debt | 7,555 | 7,344 |
Deferred taxes | 1,765 | 1,444 |
Other long-term liabilities | 54 | 65 |
Total liabilities | 10,607 | 10,331 |
Temporary equity | 0 | 2 |
Common stock—$0.01 par value, 500,000,000 shares authorized, 111,586,585 and 91,776,436 shares issued and outstanding, respectively, at December 31, 2015 and 108,233,686 and 97,877,580 shares issued and outstanding, respectively, at December 31, 2014 | 1 | 1 |
Additional paid-in capital | 2,197 | 2,168 |
Retained earnings | 1,088 | 503 |
Treasury stock at cost—19,810,149 and 10,356,106 shares at December 31, 2015 and December 31, 2014, respectively | (1,560) | (802) |
Accumulated other comprehensive loss | (250) | (74) |
Total stockholders’ equity | 1,476 | 1,796 |
Total liabilities and stockholders’ equity | 12,083 | 12,129 |
Rental equipment, net | ||
ASSETS | ||
Property, plant and equipment, net | 6,186 | 6,008 |
Property and equipment, net | ||
ASSETS | ||
Property, plant and equipment, net | $ 445 | $ 438 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 55 | $ 43 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 111,586,585 | 108,233,686 |
Common stock, shares outstanding | 91,776,436 | 97,877,580 |
Treasury stock, shares | 19,810,149 | 10,356,106 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||||||||||
Equipment rentals | $ 4,949 | $ 4,819 | $ 4,196 | ||||||||
Sales of rental equipment | 538 | 544 | 490 | ||||||||
Sales of new equipment | 157 | 149 | 104 | ||||||||
Contractor supplies sales | 79 | 85 | 87 | ||||||||
Service and other revenues | 94 | 88 | 78 | ||||||||
Total revenues | $ 1,523 | $ 1,550 | $ 1,429 | $ 1,315 | $ 1,564 | $ 1,544 | $ 1,399 | $ 1,178 | 5,817 | 5,685 | 4,955 |
Cost of revenues: | |||||||||||
Cost of equipment rentals, excluding depreciation | 1,826 | 1,806 | 1,634 | ||||||||
Depreciation of rental equipment | 976 | 921 | 852 | ||||||||
Cost of rental equipment sales | 311 | 315 | 314 | ||||||||
Cost of new equipment sales | 131 | 120 | 84 | ||||||||
Cost of contractor supplies sales | 55 | 59 | 59 | ||||||||
Cost of service and other revenues | 38 | 32 | 25 | ||||||||
Total cost of revenues | 3,337 | 3,253 | 2,968 | ||||||||
Gross profit | 648 | 690 | 618 | 524 | 707 | 688 | 589 | 448 | 2,480 | 2,432 | 1,987 |
Selling, general and administrative expenses | 714 | 758 | 642 | ||||||||
Merger related costs | (26) | 11 | 9 | ||||||||
Restructuring charge | 6 | (1) | 12 | ||||||||
Non-rental depreciation and amortization | 268 | 273 | 246 | ||||||||
Operating income | 397 | 446 | 375 | 300 | 426 | 422 | 325 | 218 | 1,518 | 1,391 | 1,078 |
Interest expense, net | 567 | 555 | 475 | ||||||||
Interest expense—subordinated convertible debentures | 0 | 0 | 3 | ||||||||
Other income, net | (12) | (14) | (5) | ||||||||
Income before provision for income taxes | 963 | 850 | 605 | ||||||||
Provision for income taxes | 378 | 310 | 218 | ||||||||
Net income | $ 169 | $ 215 | $ 86 | $ 115 | $ 194 | $ 192 | $ 94 | $ 60 | $ 585 | $ 540 | $ 387 |
Basic earnings per share (in dollars per share) | $ 1.82 | $ 2.28 | $ 0.89 | $ 1.19 | $ 1.96 | $ 1.95 | $ 0.98 | $ 0.63 | $ 6.14 | $ 5.54 | $ 4.14 |
Diluted earnings per share (in dollars per share) | $ 1.81 | $ 2.25 | $ 0.88 | $ 1.16 | $ 1.88 | $ 1.84 | $ 0.90 | $ 0.56 | $ 6.07 | $ 5.15 | $ 3.64 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Statement of Comprehensive Income [Abstract] | ||||||||||||
Net income | $ 169 | $ 215 | $ 86 | $ 115 | $ 194 | $ 192 | $ 94 | $ 60 | $ 585 | $ 540 | $ 387 | |
Other comprehensive loss: | ||||||||||||
Foreign currency translation adjustments | (174) | (90) | (65) | |||||||||
Fixed price diesel swaps | (2) | (3) | 0 | |||||||||
Other comprehensive loss | [1] | (176) | (93) | (65) | ||||||||
Comprehensive income | $ 409 | $ 447 | $ 322 | |||||||||
[1] | There were no material reclassifications from accumulated other comprehensive (loss) income reflected in other comprehensive loss during the years ended December 31, 2015, 2014 or 2013. There is no tax impact related to the foreign currency translation adjustments, as the earnings are considered permanently reinvested. There were no material taxes associated with other comprehensive loss during the years ended December 31, 2015, 2014 or 2013. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-In Capital | (Accumulated Deficit) Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | ||
Balance at Dec. 31, 2012 | $ 1 | $ 1,997 | $ (424) | $ (115) | $ 84 | |||
Balance (in shares) at Dec. 31, 2012 | 93,000 | 3,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 387 | 387 | ||||||
Foreign currency translation adjustments | (65) | (65) | ||||||
Fixed price diesel swaps | $ 0 | |||||||
Stock compensation expense, net | 46 | |||||||
Exercise of common stock options (in shares) | 484 | 1,000 | ||||||
Exercise of common stock options | 6 | |||||||
Conversion of subordinated convertible securities (in shares) | 1,000 | |||||||
Conversion of subordinated convertible debentures | 40 | |||||||
4 percent Convertible Senior Notes | [1] | (14) | ||||||
Shares repurchased and retired | (21) | |||||||
Repurchase of common stock (in shares) | (2,000) | 2,000 | ||||||
Repurchase of common stock | $ (94) | |||||||
Balance (in shares) at Dec. 31, 2013 | 93,000 | 5,000 | ||||||
Balance at Dec. 31, 2013 | $ 1 | 2,054 | (37) | $ (209) | 19 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 540 | 540 | ||||||
Foreign currency translation adjustments | (90) | (90) | ||||||
Fixed price diesel swaps | $ (3) | (3) | ||||||
Stock compensation expense, net | 74 | |||||||
Exercise of common stock options (in shares) | 213 | 0 | ||||||
Exercise of common stock options | 2 | |||||||
Conversion of subordinated convertible securities (in shares) | [2] | 10,000 | ||||||
4 percent Convertible Senior Notes | [2] | 58 | ||||||
Shares repurchased and retired | (20) | |||||||
Repurchase of common stock (in shares) | (5,000) | 5,000 | ||||||
Repurchase of common stock | $ (593) | |||||||
Balance (in shares) at Dec. 31, 2014 | 98,000 | 10,000 | ||||||
Balance at Dec. 31, 2014 | $ 1,796 | $ 1 | 2,168 | 503 | $ (802) | (74) | [3] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 585 | 585 | ||||||
Foreign currency translation adjustments | (174) | (174) | [3] | |||||
Fixed price diesel swaps | $ (2) | (2) | [3] | |||||
Stock compensation expense, net | 49 | |||||||
Exercise of common stock options (in shares) | 87 | 0 | ||||||
Exercise of common stock options | 1 | |||||||
Conversion of subordinated convertible securities (in shares) | [4] | 4,000 | ||||||
4 percent Convertible Senior Notes | [4] | 5 | ||||||
Shares repurchased and retired | (31) | |||||||
Repurchase of common stock (in shares) | (10,000) | 10,000 | ||||||
Repurchase of common stock | $ (758) | |||||||
Excess tax benefits from share-based payment arrangements, net | 5 | |||||||
Balance (in shares) at Dec. 31, 2015 | 92,000 | 20,000 | ||||||
Balance at Dec. 31, 2015 | $ 1,476 | $ 1 | $ 2,197 | $ 1,088 | $ (1,560) | $ (250) | [3] | |
[1] | Reflects amortization of the original issue discount on the 4 percent Convertible Senior Notes (an amount equal to the unamortized portion of the original issue discount is reflected as “temporary equity” in our consolidated balance sheet) and a reduction reflecting the excess of the cash transferred upon conversion of a portion of the 4 percent Convertible Senior Notes during the year ended December 31, 2013 over the principal amount of the converted notes, net of cash received from the option counterparties to our convertible note hedges upon the conversion. | |||||||
[2] | Primarily reflects amortization of the original issue discount on the 4 percent Convertible Senior Notes (an amount equal to the unamortized portion of the original issue discount is reflected as “temporary equity” in our consolidated balance sheet) and cash received from the option counterparties to our convertible note hedges associated with conversions of a portion of our 4 percent Convertible Senior Notes. | |||||||
[3] | As of December 31, 2015, 2014 and 2013, the Accumulated Other Comprehensive Income (Loss) balance primarily reflects foreign currency translation adjustments. | |||||||
[4] | Reflects amortization of the original issue discount on the 4 percent Convertible Senior Notes (an amount equal to the unamortized portion of the original issue discount is reflected as “temporary equity” in our consolidated balance sheet) and the conversion of all outstanding 4 percent Convertible Senior Notes. See note 12 to our consolidated financial statements for additional detail. |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - 4 percent Convertible Senior Notes | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Stated interest rate | 4.00% | 4.00% | 4.00% |
Convertible debt | |||
Stated interest rate | 4.00% | 4.00% | 4.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows From Operating Activities: | |||
Net income | $ 585 | $ 540 | $ 387 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,244 | 1,194 | 1,098 |
Amortization of deferred financing costs and original issue discounts | 10 | 17 | 21 |
Gain on sales of rental equipment | (227) | (229) | (176) |
Gain on sales of non-rental equipment | (8) | (11) | (6) |
Loss on sale of software subsidiary | 0 | 0 | 1 |
Stock compensation expense, net | 49 | 74 | 46 |
Merger related costs | (26) | 11 | 9 |
Restructuring charge | 6 | (1) | 12 |
Loss on repurchase/redemption of debt securities and amendment of ABL facility | 123 | 80 | 1 |
Loss on retirement of subordinated convertible debentures | 0 | 0 | 2 |
Excess tax benefits from share-based payment arrangements | (5) | 0 | 0 |
Increase in deferred taxes | 336 | 261 | 167 |
Changes in operating assets and liabilities: | |||
Increase in accounts receivable | (11) | (101) | (20) |
Decrease (increase) in inventory | 8 | 11 | (2) |
(Increase) decrease in prepaid expenses and other assets | (38) | (52) | 60 |
(Decrease) increase in accounts payable | (8) | (23) | 9 |
(Decrease) increase in accrued expenses and other liabilities | (43) | 30 | (58) |
Net cash provided by operating activities | 1,995 | 1,801 | 1,551 |
Cash Flows From Investing Activities: | |||
Purchases of rental equipment | (1,534) | (1,701) | (1,580) |
Purchases of non-rental equipment | (102) | (120) | (104) |
Proceeds from sales of rental equipment | 538 | 544 | 490 |
Proceeds from sales of non-rental equipment | 17 | 33 | 26 |
Purchases of other companies, net of cash acquired | (86) | (756) | (9) |
Purchases of investments | (3) | 0 | 0 |
Net cash used in investing activities | (1,170) | (2,000) | (1,177) |
Cash Flows From Financing Activities: | |||
Proceeds from debt | 8,566 | 7,070 | 3,805 |
Payments of debt, including subordinated convertible debentures | (8,482) | (6,283) | (3,965) |
Payment of contingent consideration | (52) | 0 | 0 |
Payments of financing costs | (27) | (22) | (2) |
Proceeds from the exercise of common stock options | 1 | 2 | 6 |
Common stock repurchased | (789) | (613) | (115) |
Cash received (paid) in connection with the 4 percent Convertible Senior Notes and related hedge, net | 3 | 42 | (24) |
Excess tax benefits from share-based payment arrangements | 5 | 0 | 0 |
Net cash (used in) provided by financing activities | (775) | 196 | (295) |
Effect of foreign exchange rates | (29) | (14) | (10) |
Net increase (decrease) in cash and cash equivalents | 21 | (17) | 69 |
Cash and cash equivalents at beginning of year | 158 | 175 | 106 |
Cash and cash equivalents at end of year | 179 | 158 | 175 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, including subordinated convertible debentures | 447 | 457 | 461 |
Cash paid for income taxes, net | $ 60 | $ 100 | $ 48 |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - 4 percent Convertible Senior Notes | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Stated interest rate | 4.00% | 4.00% | 4.00% |
Convertible debt | |||
Stated interest rate | 4.00% | 4.00% | 4.00% |
Organization, Description of Bu
Organization, Description of Business and Consolidation | 12 Months Ended |
Dec. 31, 2015 | |
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 and Canada. 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. Certain reclassifications of prior years’ amounts have been made to conform to the current year’s presentation (see note 2 to our consolidated financial statements for a summary of accounting standards adopted in 2015 that resulted in changes to our previously reported financial statements). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 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. 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 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 to 12 years. Rental equipment is depreciated to a salvage value of zero to 10 percent of cost. Rental equipment is depreciated whether or not it is out on rent. Costs we incur in connection with refurbishment programs that extend the life of our equipment are capitalized and amortized over the remaining useful life of the equipment. The costs incurred under these refurbishment programs were $30 , $39 and $44 for the years ended December 31, 2015 , 2014 and 2013 , respectively, and are included in purchases of rental equipment in our consolidated statements of cash flows. Ordinary repair and maintenance costs are charged to operations as incurred. Repair and maintenance costs are included in cost of revenues on our consolidated statements of income. Repair and maintenance expense (including both labor and parts) for our rental equipment was $628 , $604 and $563 for the years ended December 31, 2015 , 2014 and 2013 , respectively. 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 to 39 years. Ordinary repair and maintenance costs are charged to expense as incurred. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the remaining life of the lease, whichever is shorter. Purchase Price Allocation We have made a number of acquisitions in the past (including the National Pump acquisition discussed in note 3 to our consolidated financial statements) 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. The intangible assets that we have acquired are non-compete agreements, customer relationships and trade names and associated trademarks. 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. 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. We review goodwill for impairment utilizing a two-step process. The first step of the impairment test requires a comparison of the fair value of each of our reporting units' net assets to the respective carrying value of net assets. If the carrying value of a reporting unit's net assets is less than its fair value, no indication of impairment exists and a second step is not performed. If the carrying amount of a reporting unit's net assets is higher than its fair value, there is an indication that an impairment may exist and a second step must be performed. In the second step, the impairment is calculated 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. If the carrying amount of the reporting unit's goodwill is greater than the implied fair value of its goodwill, an impairment loss must be recognized for the excess and charged to operations. 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 as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. In connection with our goodwill impairment test that was conducted as of October 1, 2014 , we bypassed the qualitative assessment for each of our reporting units 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 Pump Solutions reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 63 percent. In April 2014, we completed the acquisition of assets of the following four entities: National Pump & Compressor, Ltd., Canadian Pump and Compressor Ltd., GulfCo Industrial Equipment, LP and LD Services, LLC (collectively “National Pump”). All of the assets in the Pump Solutions reporting unit were acquired in the National Pump acquisition. The estimated fair value of our Pump Solutions reporting unit exceeded its carrying amount by 13 percent. As all of the assets in the Pump Solutions reporting unit were recorded at fair value as of the April 2014 acquisition date, we expected the percentage by which the Pump Solutions 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, 2015 , we bypassed the qualitative assessment for each of our reporting units 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 Pump Solutions reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 51 percent. In April 2014, we completed the acquisition of National Pump. Most of the assets in the Pump Solutions reporting unit were acquired in the National Pump acquisition. Based on the October 1, 2015 test, the Pump Solutions reporting unit’s estimated fair value exceeded its carrying amount by 3.3 percent. In light of continuing pressures on the Pump Solutions reporting unit related primarily to upstream oil and gas customers, we continued to monitor the Pump Solutions reporting unit for impairment through the end of 2015, and performed another impairment test as of November 30, 2015. As of the November 30, 2015 testing date, the estimated fair value of the Pump Solutions reporting unit exceeded its carrying amount by 1 percent. No additional impairment indicators were noted as of December 31, 2015. As of December 31, 2015, there was $311 of goodwill in the Pump Solutions reporting unit. Given the narrow margin by which the estimated fair value of the Pump Solutions reporting unit exceeded its carrying amount, we also performed a sensitivity analysis related to the discount rate and long-term growth rate used in the November 30, 2015 test. Specifically, we performed the sensitivity analysis by: (i) increasing the discount rate by 50 basis points and (ii) reducing the long-term growth rate by 25 basis points. The Pump Solutions reporting unit failed step one of the goodwill impairment test under the sensitivity test, and would have required step two testing to determine potential goodwill impairment. The November 30, 2015 impairment test assumed earnings growth for the Pump Solutions reporting unit over the next three years. Should this growth not occur, if the reporting unit otherwise fails to meet its current financial plans, or if there were changes to any other key assumption used in the test, the Pump Solutions reporting unit could fail step one of the goodwill impairment test in a future period. We will continue to monitor the Pump Solutions reporting unit for impairment. 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 7 to 15 years. The trade names and associated trademarks are being amortized using the sum of the years' digits method over an initial period of 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 Canadian 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 Our rental contract periods are hourly , daily, weekly or monthly and we recognize revenues from renting equipment on a straight-line basis. 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 over the cumulative amount of revenue recognized to date. We record amounts billed to customers in excess of recognizable revenue as deferred revenue on our balance sheet. We had deferred revenue of $32 and $36 as of December 31, 2015 and 2014 , respectively. Equipment rentals include our revenues from renting equipment, as well as revenue related to the fees we charge customers: for equipment delivery and pick-up; to protect the customer against liability for damage to our equipment while on rent; and for fuel. Delivery and pick-up revenue is recognized when the service is performed. Customers have the option of purchasing a damage waiver when they rent our equipment to protect against potential loss or damage; we refer to the fee we charge for the waiver as Rental Protection Plan (or "RPP") revenue. RPP revenue is recognized ratably over the contract term. Fees related to the consumption of fuel by our customers are recognized when the equipment is returned by the customer (and consumption, if any, can be measured). Revenues from the sale of rental equipment and new equipment are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is reasonably assured. Sales of contractor supplies are also recognized at the time of delivery to, or pick-up by, the customer. Service revenue is recognized as the services are performed. Sales tax amounts collected from customers are recorded on a net basis. 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, yellow pages, the Internet, radio and direct mail. Advertising costs are generally expensed as incurred. Advertising expense, net of qualified advertising reimbursements, was $0 for each of the years ended December 31, 2015 , 2014 and 2013 . 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 $ 17 , $ 16 and $ 15 for the years ended December 31, 2015 , 2014 and 2013 , 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. The Company is also self-insured for group medical claims but purchases “stop loss” insurance to protect itself from 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. 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, reserves for claims, loss contingencies (including legal contingencies) and the fair values of financial instruments. 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. Our largest customer accounted for less than one percent of total revenues in each of 2015 , 2014 , and 2013 . Our customer with the largest receivable balance represented approximately one percent of total receivables at December 31, 2015 and 2014 . 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, forfeiture rates 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 classify cash flows from tax benefits resulting from tax deductions in excess of the compensation cost recognized for stock-based awards (“excess tax benefits”) as financing cash flows. New Accounting Pronouncements Revenue from Contracts with Customers . In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to clarify the principles for recognizing revenue. This guidance includes the required steps to achieve the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has agreed to a one-year deferral of the original effective date of this guidance and as a result it will be effective for fiscal years and interim periods beginning after December 15, 2017. The FASB's update allows entities to apply the new guidance as of the original effective date (for fiscal years and interim periods beginning after December 15, 2016). We expect to adopt this guidance when effective, and the impact on our financial statements is not currently estimable. Inventory . In July 2015, the FASB issued guidance that requires an entity to measure inventory at the lower of cost or net realizable value. Current GAAP requires that an entity measure inventory at the lower of cost or market, and market under current GAAP could be replacement cost, net realizable value, or net realizable value less a normal profit margin. This guidance is effective for fiscal years and interim periods beginning after December 15, 2016, and requires prospective application. Early adoption is permitted. We expect to adopt this guidance when effective, and do not expect this guidance to have a significant impact on our financial statements. Business Combinations . In September 2015, the FASB issued guidance to simplify the accounting for adjustments made during the measurement period to provisional amounts recognized in a business combination. This guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition the acquirer is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance is effective for fiscal years and interim periods beginning after December 15, 2015, and requires prospective application. Early adoption is permitted. We expect to adopt this guidance when effective, and do not expect this guidance to have a significant impact on our financial statements. Guidance Adopted in the Fourth Quarter of 2015 Simplifying the Presentation of Debt Issuance Costs . In April 2015, the FASB issued guidance on the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. We early adopted this guidance retrospectively during the fourth quarter of 2015. As a result of adopting this guidance, total assets and total liabilities as of December 31, 2014 decreased as discussed below. Balance Sheet Classification of Deferred Taxes . In November 2015, the FASB issued guidance that requires that deferred tax liabilities and assets be classified as non-current in the balance sheet. We early adopted this guidance retrospectively during the fourth quarter of 2015. As a result of adopting this guidance, total assets and total liabilities as of December 31, 2014 decreased as discussed below. The impact of adopting the above guidance as of December 31, 2014 was as follows: Deferred tax current assets Total current assets Other long-term assets Total assets Long-term debt Deferred tax long-term liabilities Total liabilities Total liabilities and stockholders' equity Previously reported $ 248 $ 1,546 $ 97 $ 12,467 $ 7,434 $ 1,692 $ 10,669 $ 12,467 Simplifying the Presentation of Debt Issuance Costs — — (90 ) (90 ) (90 ) — (90 ) (90 ) Balance Sheet Classification of Deferred Taxes (248 ) (248 ) — (248 ) — (248 ) (248 ) (248 ) Current presentation $ — $ 1,298 $ 7 $ 12,129 $ 7,344 $ 1,444 $ 10,331 $ 12,129 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions In April 2014, we completed the acquisition of assets of National Pump. National Pump was the second largest specialty pump rental company in North America. National Pump was a leading supplier of pumps for energy and petrochemical customers, with upstream oil and gas customers representing about half of its revenue. National Pump had a total of 35 branches, including four branches in western Canada, and had annual revenues of approximately $ 210 . The acquisition is expected to expand our product offering, and supports our strategy of expanding our presence in industrial and specialty rental markets. The acquisition date fair value of the consideration transferred consisted of the following: Cash consideration (1) $ 773 Contingent consideration (2) 76 Total purchase consideration (3) $ 849 (1) Includes a ‘hold back’ of $ 58 that was paid in April 2015. (2) Reflects the acquisition date fair value of the contingent consideration that was paid in June 2015 as discussed in note 11 to our consolidated financial statements. (3) Total purchase consideration excludes $ 15 of stock which was issued in connection with the acquisition and was treated as compensation for book purposes but primarily represents deductible goodwill for income tax purposes. The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date: Accounts receivable, net of allowance for doubtful accounts (1) $ 44 Inventory 19 Deferred taxes 6 Rental equipment 172 Property and equipment 10 Intangibles (2) 289 Other assets 1 Total identifiable assets acquired 541 Current liabilities (25 ) Total liabilities assumed (25 ) Net identifiable assets acquired 516 Goodwill (3) 333 Net assets acquired $ 849 (1) The fair value of accounts receivables acquired was $ 44 , and the gross contractual amount was $ 47 . We estimated that $ 3 would be uncollectible. (2) The following table reflects the estimated fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair value Life (years) Customer relationships $ 274 10 Non-compete agreements 15 6 Total $ 289 (3) $ 321 of the goodwill was assigned to our trench, power and pump segment and $ 12 of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the merger is primarily reflective of National Pump's going-concern value, the value of National Pump's assembled workforce, new customer relationships expected to arise from the merger, and operational synergies that we expect to achieve that would not be available to other market participants. $ 325 of goodwill is expected to be deductible for income tax purposes. The amount of goodwill that is expected to be deductible for income tax purposes declined during the year ended December 31, 2015 due to a decline in the fair value of the contingent cash consideration component of the National Pump purchase price due to lower than expected financial performance compared to agreed upon financial targets, as discussed in note 11 to our consolidated financial statements. The year ended December 31, 2015 includes a National Pump acquisition-related cost reduction of $ 26 . The cost reduction reflects a decline in the fair value of the contingent cash consideration component of the National Pump purchase price due to lower than expected financial performance compared to agreed upon financial targets, as discussed in note 11 to our consolidated financial statements. The year ended December 31, 2014 includes National Pump acquisition-related costs of $ 10 . The acquisition-related costs are reflected in our consolidated statements of income as “Merger related costs” which also include costs associated with the acquisition of RSC Holdings Inc. (“RSC”). The merger related costs primarily relate to financial and legal advisory fees, and also include changes subsequent to the acquisition date to the fair value of the contingent cash consideration component of the National Pump purchase price as discussed in note 11 to our consolidated financial statements. We do not expect to incur significant additional charges in connection with the merger subsequent to December 31, 2015 . In addition to the acquisition-related costs reflected in our consolidated statements of income, we capitalized $ 22 of debt issuance costs associated with the issuance of debt to fund the acquisition, which are reflected, net of amortization subsequent to the acquisition date, in other long-term assets in our consolidated balance sheets. The pro forma information below has been prepared using the purchase method of accounting, giving effect to the National Pump acquisition as if it had been completed on January 1, 2013 (“the pro forma acquisition date”). The pro forma information is not necessarily indicative of our results of operations had the acquisition been completed on the above date, nor is it necessarily indicative of our future results. The pro forma information does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisition, and also does not reflect additional revenue opportunities following the acquisition. The table below presents unaudited pro forma consolidated income statement information as if National Pump had been included in our consolidated results for the entire periods reflected: Year Ended December 31, 2014 2013 United Rentals historic revenues $ 5,685 $ 4,955 National Pump historic revenues 62 208 Pro forma revenues 5,747 5,163 United Rentals historic pretax income 850 605 National Pump historic pretax income 20 62 Combined pretax income 870 667 Pro forma adjustments to combined pretax income: Impact of fair value mark-ups/useful life changes on depreciation (1) (1 ) (4 ) Intangible asset amortization (2) (12 ) (52 ) Interest expense (3) 58 (95 ) Elimination of historic National Pump interest (4) — 2 Elimination of merger costs (5) 8 — Pro forma pretax income $ 923 $ 518 (1) Depreciation of rental equipment and non-rental depreciation were adjusted for the fair value mark-ups of equipment acquired in the National Pump acquisition. The useful lives assigned to such equipment didn’t change significantly from the lives historically used by National Pump. (2) The intangible assets acquired in the National Pump acquisition were amortized. (3) In connection with the National Pump acquisition, URNA issued $ 525 principal amount of 6 1 / 8 percent Senior Notes (as an add on to our existing 6 1 / 8 percent Senior Notes) and $ 850 principal amount of 5 3 / 4 percent Senior Notes, and all our outstanding 9 1 / 4 percent Senior Notes were redeemed. Interest expense was adjusted to reflect these changes in our debt portfolio. For the pro forma presentation, the $ 64 loss recognized upon redemption of the 9 1 / 4 percent Senior Notes was moved from the year ended December 31, 2014 to the year ended December 31, 2013. (4) Interest on National Pump historic debt was eliminated. (5) Merger related costs, primarily comprised of financial and legal advisory fees, associated with the National Pump acquisition were eliminated as they were assumed to have been recognized prior to the pro forma acquisition date. For the years ended December 31, 2015 and 2014, National Pump revenue and pretax (loss) income included in our consolidated financial statements were as follows: Year Ended December 31, 2015 2014 Revenue $ 225 $ 215 Pretax (loss) income (1) (6 ) 42 (1) Pretax (loss) income excludes merger related costs which are not allocated to our segments. Pretax loss for the year ended December 31, 2015 reflects volume and pricing pressure associated with upstream oil and gas customers, and the amortization of the intangible assets acquired in the National Pump acquisition. In addition to the acquisitions of National Pump, in May 2014, we completed the acquisition of Blue Stream, an equipment rental company with four locations in Louisiana and Texas. Blue Stream had annual rental revenues of approximately $ 20 . Additionally, in September 2015, we completed the acquisition of DDR Propane and Equipment Rental ("DDR"), an equipment rental company with two locations in Alberta, Canada. DDR had annual revenues of approximately $ 20 . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our two reportable segments are i) general rentals and ii) trench, power and pump. The general rentals segment includes the rental of i) general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, ii) aerial work platforms, such as boom lifts and scissor lifts and iii) general tools and light equipment, such as pressure washers, water pumps and power tools. The general rentals segment reflects the aggregation of nine geographic regions—Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Midwest, Northeast, Pacific West, South-Central, South, Southeast and Western Canada—and operates throughout the United States and Canada. We periodically review the size and geographic scope of our regions, and have occasionally reorganized the regions to create a more balanced and effective structure. In 2015, we reorganized certain of our regions to arrive at the current general rentals' region structure. The trench, power and pump segment includes the rental of specialty construction products such as i) trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, ii) power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment and iii) pumps primarily used by energy and petrochemical customers. The trench, power and pump segment is comprised of the following regions, each of which primarily rents the corresponding equipment type described above: (i) the Trench Safety region, (ii) the Power and HVAC region, and (iii) the Pump Solutions region. The trench, power and pump segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment operates throughout the United States and in Canada. The following table presents the percentage of equipment rental revenue by equipment type for the years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, 2015 2014 2013 Primarily rented by our general rentals segment: General construction and industrial equipment 43 % 43 % 44 % Aerial work platforms 32 % 33 % 36 % General tools and light equipment 10 % 10 % 9 % Primarily rented by our trench, power and pump segment: Power and HVAC equipment 6 % 6 % 6 % Trench safety equipment 5 % 5 % 5 % Pumps 4 % 3 % * * There was no material equipment rental revenue associated with pumps prior to the April 2014 acquisition of National Pump discussed in note 3 to our consolidated financial statements. These segments align our external segment reporting with how management evaluates business performance and allocates resources. We evaluate segment performance based on segment equipment rentals gross profit. 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, 2015 , 2014 and 2013 : General Trench, Total 2015 Equipment rentals $ 4,241 $ 708 $ 4,949 Sales of rental equipment 504 34 538 Sales of new equipment 137 20 157 Contractor supplies sales 67 12 79 Service and other revenues 83 11 94 Total revenue 5,032 785 5,817 Depreciation and amortization expense 1,071 173 1,244 Equipment rentals gross profit 1,819 328 2,147 Capital expenditures 1,439 197 1,636 Total assets $ 10,561 $ 1,522 $ 12,083 2014 Equipment rentals $ 4,222 $ 597 $ 4,819 Sales of rental equipment 519 25 544 Sales of new equipment 113 36 149 Contractor supplies sales 73 12 85 Service and other revenues 75 13 88 Total revenue 5,002 683 5,685 Depreciation and amortization expense 1,060 134 1,194 Equipment rentals gross profit 1,790 302 2,092 Capital expenditures 1,594 227 1,821 Total assets (1) $ 10,597 $ 1,532 $ 12,129 2013 Equipment rentals $ 3,869 $ 327 $ 4,196 Sales of rental equipment 474 16 490 Sales of new equipment 97 7 104 Contractor supplies sales 79 8 87 Service and other revenues 72 6 78 Total revenue 4,591 364 4,955 Depreciation and amortization expense 1,038 60 1,098 Equipment rentals gross profit 1,557 153 1,710 Capital expenditures 1,556 128 1,684 Total assets $ 10,322 $ 554 $ 10,876 (1) The increase in the trench safety, power and HVAC, and pump solutions assets in 2014 primarily reflects the impact of the National Pump acquisition discussed in note 3 to the consolidated financial statements. 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, 2015 2014 2013 Total equipment rentals gross profit $ 2,147 $ 2,092 $ 1,710 Gross profit from other lines of business 333 340 277 Selling, general and administrative expenses (714 ) (758 ) (642 ) Merger related costs 26 (11 ) (9 ) Restructuring charge (6 ) 1 (12 ) Non-rental depreciation and amortization (268 ) (273 ) (246 ) Interest expense, net (567 ) (555 ) (475 ) Interest expense- subordinated convertible debentures — — (3 ) Other income, net 12 14 5 Income before provision for income taxes $ 963 $ 850 $ 605 We operate in the United States and Canada. The following table presents geographic area information for the years ended December 31, 2015 , 2014 and 2013 , except for balance sheet information, which is presented as of December 31, 2015 and 2014 : Domestic Foreign (Canada) Total 2015 Equipment rentals $ 4,452 $ 497 $ 4,949 Sales of rental equipment 480 58 538 Sales of new equipment 137 20 157 Contractor supplies sales 69 10 79 Service and other revenues 80 14 94 Total revenue 5,218 599 5,817 Rental equipment, net 5,657 529 6,186 Property and equipment, net 399 46 445 Goodwill and other intangibles, net $ 3,838 $ 310 $ 4,148 2014 Equipment rentals $ 4,217 $ 602 $ 4,819 Sales of rental equipment 478 66 544 Sales of new equipment 124 25 149 Contractor supplies sales 70 15 85 Service and other revenues 73 15 88 Total revenue 4,962 723 5,685 Rental equipment, net 5,399 609 6,008 Property and equipment, net 395 43 438 Goodwill and other intangibles, net $ 4,014 $ 364 $ 4,378 2013 Equipment rentals $ 3,612 $ 584 $ 4,196 Sales of rental equipment 438 52 490 Sales of new equipment 82 22 104 Contractor supplies sales 70 17 87 Service and other revenues 62 16 78 Total revenue $ 4,264 $ 691 $ 4,955 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Closed Restructuring Programs We have two closed restructuring programs. The first was initiated in 2008 in recognition of a challenging economic environment and closed in 2011. The second closed restructuring program was initiated following the April 30, 2012 acquisition of RSC, and was completed in 2013. The restructuring charges under the closed restructuring programs for the years ended December 31, 2015 , 2014 and 2013 include severance costs associated with headcount reductions, as well as branch closure charges which principally relate to continuing lease obligations at vacant facilities. The table below provides certain information concerning our restructuring charges under the closed restructuring programs: Description Beginning Charged to Payments Ending Year ended December 31, 2013: Branch closure charges $ 52 $ 10 $ (29 ) $ 33 Severance costs 9 2 (9 ) 2 Total $ 61 $ 12 $ (38 ) $ 35 Year ended December 31, 2014: Branch closure charges $ 33 $ (1 ) $ (12 ) $ 20 Severance costs 2 — (2 ) — Total $ 35 $ (1 ) $ (14 ) $ 20 Year ended December 31, 2015: Branch closure charges $ 20 $ 2 $ (9 ) $ 13 Severance costs — — — — Total $ 20 $ 2 $ (9 ) $ 13 _________________ (1) Reflected in our consolidated statements of income as “Restructuring charge.” The restructuring charges are not allocated to our segments. Between January 1, 2008 and December 31, 2015 , we incurred total restructuring charges under the closed restructuring programs of $216 , comprised of $150 of branch closure charges and $66 of severance costs. 2015-2016 Cost Savings Restructuring Program In the fourth quarter of 2015, we initiated a restructuring program in response to recent challenges in our operating environment. In particular, during 2015, we experienced volume and pricing pressure in our general rental business and our Pump Solutions region associated with upstream oil and gas customers. Additionally, our Lean initiatives have not fully generated the anticipated cost savings due to lower than expected growth. Though we expect solid industry growth in 2016, the restructuring program was initiated in an effort to reduce costs in an environment with continuing pressures on volume and pricing. We expect to complete the restructuring program in 2016. We recognized $4 of costs for this program in the fourth quarter of 2015, and expect to recognize most of the costs associated with the program in 2016. 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 current restructuring program: Description Beginning Charged to Payments Ending Year ended December 31, 2015: Branch closure charges $ — $ — $ — $ — Severance costs — 4 (1 ) 3 Total $ — $ 4 $ (1 ) $ 3 _________________ (1) Reflected in our consolidated statements of income as “Restructuring charge.” The restructuring charges are not allocated to our segments. |
Rental Equipment
Rental Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Rental Equipment | |
Property, Plant and Equipment [Line Items] | |
Rental Equipment | Rental Equipment Rental equipment consists of the following: December 31, 2015 2014 Rental equipment $ 9,022 $ 8,527 Less accumulated depreciation (2,836 ) (2,519 ) Rental equipment, net $ 6,186 $ 6,008 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: December 31, 2015 2014 Land $ 98 $ 97 Buildings 226 223 Non-rental vehicles 86 75 Machinery and equipment 78 68 Furniture and fixtures 171 152 Leasehold improvements 212 200 871 815 Less accumulated depreciation and amortization (426 ) (377 ) Property and equipment, net $ 445 $ 438 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 : General rentals Trench, Total Balance at January 1, 2013 (1) $ 2,828 $ 142 $ 2,970 Foreign currency translation and other adjustments (16 ) (1 ) (17 ) Balance at December 31, 2013 (1) 2,812 141 2,953 Goodwill related to acquisitions (2) 12 330 342 Foreign currency translation and other adjustments (20 ) (3 ) (23 ) Balance at December 31, 2014 (1) 2,804 468 3,272 Goodwill related to acquisitions (2) 16 — 16 Foreign currency translation and other adjustments (34 ) (11 ) (45 ) Balance at December 31, 2015 (1) $ 2,786 $ 457 $ 3,243 _________________ (1) The total carrying amount of goodwill for all periods in the table above is reflected net of $1,557 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. Other intangible assets were comprised of the following at December 31, 2015 and 2014 : December 31, 2015 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 31 months $ 69 $ 44 $ 25 Customer relationships 11 years $ 1,453 $ 583 $ 870 Trade names and associated trademarks 16 months $ 80 $ 70 $ 10 December 31, 2014 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 40 months $ 70 $ 31 $ 39 Customer relationships 12 years $ 1,496 $ 451 $ 1,045 Trade names and associated trademarks 28 months $ 80 $ 58 $ 22 Amortization expense for other intangible assets was $193 , $204 and $178 for the years ended December 31, 2015 , 2014 and 2013 , respectively. The increase for the year ended December 31, 2014 primarily reflects the National Pump acquisition discussed in note 3 to our consolidated financial statements. As of December 31, 2015 , estimated amortization expense for other intangible assets for each of the next five years and thereafter was as follows: 2016 $ 173 2017 144 2018 124 2019 110 2020 94 Thereafter 260 Total $ 905 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Self-insurance accruals $ 43 $ 42 Accrued compensation and benefit costs 41 97 Property and income taxes payable 22 35 Restructuring reserves (1) 16 20 Interest payable 91 102 Deferred revenue (2) 38 39 National accounts accrual 39 38 Due to seller 4 129 Other (3) 61 73 Accrued expenses and other liabilities $ 355 $ 575 _________________ (1) Relates to branch closure charges and severance costs. See note 5 for additional detail. (2) Primarily relates to amounts billed to customers in excess of recognizable equipment rental revenue. See note 2 (“Revenue Recognition”) for additional detail. (3) Other includes multiple items, none of which are individually significant. Other long-term liabilities consist of the following: December 31, 2015 2014 Self-insurance accruals $ 47 $ 50 Due to seller — 8 Accrued compensation and benefit costs 7 7 Other long-term liabilities $ 54 $ 65 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives We recognize all derivative instruments as either assets or liabilities at fair value, and recognize changes in the fair value of the derivative instruments based on the designation of the derivative. We are exposed to certain risks relating to our ongoing business operations. During the year ended December 31, 2015 , the risks we managed using derivative instruments were diesel price risk and foreign currency exchange rate risk. At December 31, 2015 , we had outstanding fixed price swap contracts on diesel purchases which were entered into to mitigate the price risk associated with forecasted purchases of diesel. During the year ended December 31, 2015 , we entered into forward contracts to purchase Canadian dollars to mitigate the foreign currency exchange rate risk associated with certain Canadian dollar denominated intercompany loans. At December 31, 2015 , there were no outstanding forward contracts to purchase Canadian dollars. The outstanding forward contracts on diesel purchases were designated and qualify as cash flow hedges and the forward contracts to purchase Canadian dollars, which were all settled as of December 31, 2015 , represented derivative instruments not designated as hedging instruments. Fixed Price Diesel Swaps The fixed price swap contracts on diesel purchases that were outstanding at December 31, 2015 were designated and qualify as cash flow hedges and the effective portion of the unrealized gain or loss on these contracts is reported as a component of accumulated other comprehensive income and is reclassified into earnings in the period during which the hedged transaction affects earnings (i.e., when the hedged gallons of diesel are used). The remaining gain or loss on the fixed price swap contracts in excess of the cumulative change in the present value of future cash flows of the hedged item, if any (i.e., the ineffective portion), is recognized in our consolidated statements of income during the current period. As of December 31, 2015 , we had outstanding fixed price swap contracts covering 10.3 million gallons of diesel which will be purchased throughout 2016 and 2017 . Foreign Currency Forward Contracts The forward contracts to purchase Canadian dollars, which were all settled as of December 31, 2015 , represented derivative instruments not designated as hedging instruments and gains or losses due to changes in the fair value of the forward contracts were recognized in our consolidated statements of income during the period in which the changes in fair value occurred. During the year ended December 31, 2015 , forward contracts were used to purchase $221 Canadian dollars, representing the total amount due at maturity for certain Canadian dollar denominated intercompany loans that were settled during the year ended December 31, 2015 . Upon maturity, the proceeds from the forward contracts were used to pay down the Canadian dollar denominated intercompany loans. Financial Statement Presentation As of December 31, 2015 and 2014 , immaterial amounts ( $6 or less) were reflected in prepaid expenses and other assets, accrued expenses and other liabilities, and accumulated other comprehensive income in our consolidated balance sheets associated with the outstanding fixed price swap contracts that were designated and qualify as cash flow hedges. Insignificant amounts (less than $1 ) were reflected in our consolidated statement of cash flows for the years ended December 31, 2015 , 2014 and 2013 associated with the forward contracts to purchase Canadian dollars. Operating cash flows in our consolidated statement of cash flows for the years ended December 31, 2015 , 2014 and 2013 include $35 , $41 and $38 , respectively, associated with the fixed price diesel swaps, comprised of 1) the cost to purchase 10.6 million , 10.5 million and 9.7 million hedged gallons of diesel during the years ended December 31, 2015 , 2014 and 2013 , respectively, and 2) cash paid to or received from the counterparties to the fixed price swaps. The effect of our derivative instruments on our consolidated statements of income for the years ended December 31, 2015 , 2014 and 2013 was as follows: Location of income Amount of income (expense) Amount of income (expense) Year ended December 31, 2015: Derivatives designated as hedging instruments: Fixed price diesel swaps Other income (expense), net (1) $ * Cost of equipment rentals, excluding (7 ) (29 ) Derivatives not designated as hedging instruments: Foreign currency forward contracts Other income (expense), net (5 ) 5 Year ended December 31, 2014: Derivatives designated as hedging instruments: Fixed price diesel swaps Other income (expense), net (1) $ * Cost of equipment rentals, excluding * (40 ) Derivatives not designated as hedging instruments: Foreign currency forward contracts Other income (expense), net (7 ) 7 Year ended December 31, 2013: Derivatives designated as hedging instruments: Fixed price diesel swaps Other income (expense), net (1) $ * Cost of equipment rentals, excluding * (38 ) Derivatives not designated as hedging instruments: Foreign currency forward contracts Other income (expense), net (3 ) 3 * Amounts are insignificant (less than $1 ). (1) Represents the ineffective portion of the fixed price diesel swaps. (2) Amounts recognized on derivative represent the effective portion of the fixed price diesel swaps. (3) Amounts recognized on hedged item reflect the use of 10.6 million , 10.5 million and 9.7 million gallons of diesel covered by the fixed price swaps during the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We account for certain assets and liabilities at fair value, and categorize each of our fair value measurements in one of the following three levels based on the lowest level input that is significant to the fair value measurement in its entirety: Level 1 —Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 —Observable inputs other than quoted prices in active markets for identical assets and liabilities include: a) quoted prices for similar assets or liabilities in active markets; b) quoted prices for identical or similar assets or liabilities in inactive markets; c) inputs other than quoted prices that are observable for the asset or liability; d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 —Inputs to the valuation methodology are unobservable (i.e., supported by little or no market activity) and significant to the fair value measure. Assets and Liabilities Measured at Fair Value Our fixed price diesel swap contracts are Level 2 derivatives measured at fair value on a recurring basis. As of December 31, 2015 and 2014 , immaterial amounts ( $6 or less) were reflected in prepaid expenses and other assets, and accrued expenses and other liabilities in our consolidated balance sheets, reflecting the fair values of the fixed price swap contracts. As discussed in note 10 to the consolidated financial statements, we entered into the fixed price swap contracts on diesel purchases to mitigate the price risk associated with forecasted purchases of diesel. Fair value is determined based on observable market data. As of December 31, 2015 , we have fixed price swap contracts covering 10.3 million gallons of diesel which we will buy throughout 2016 and 2017 at the average contract price of $2.93 per gallon, while the average forward price for the hedged gallons was $2.35 per gallon as of December 31, 2015 . The fair value of the contingent cash consideration component of the National Pump purchase price discussed in note 3 to our consolidated financial statements was $ 0 as of December 31, 2015 and $ 78 as of December 31, 2014. In June 2015, we paid the contingent consideration and were relieved of further liabilities associated therewith. The contingent consideration was recorded in accrued expenses and other liabilities in our condensed consolidated balance sheets, and was a Level 3 liability that was measured at fair value on a recurring basis. Fair value was determined using a probability weighted discounted cash flow methodology. Key inputs to the valuation included: (i) discrete scenarios of potential payouts; (ii) probability weightings assigned to each of the scenarios; and (iii) a rate of return with which to discount the probability weighted payouts to present value. Changes to the fair value of the contingent cash consideration are reflected in our consolidated statements of income as “Merger related costs” which included a $ 26 fair value reduction for the year ended December 31, 2015 . In June 2015, we paid the liability remaining after recognizing the decline in fair value, and were relieved of further liabilities associated therewith. The decline in the fair value of the contingent cash consideration primarily related to lower than expected financial performance compared to agreed upon financial targets. 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 senior secured asset-based revolving credit facility (“ABL facility”) and accounts receivable securitization facility approximate their book values as of December 31, 2015 and 2014 . The estimated fair values of our other financial instruments at December 31, 2015 and 2014 have been calculated based upon available market information or an appropriate valuation technique, and are as follows: December 31, 2015 December 31, 2014 Carrying Fair Carrying Fair Level 1: Senior and senior subordinated notes $ 5,916 $ 6,030 $ 5,984 $ 6,390 Level 2: 4 percent Convertible Senior Notes (1) — — 32 33 Level 3: Capital leases (2) 96 95 105 104 (1) The fair value of the 4 percent Convertible Senior Notes is based on the market value of comparable notes. Consistent with the carrying amount, the fair value excludes the equity component of the notes. The 4 percent Convertible Senior Notes matured in 2015. To exclude the equity component and calculate the fair value as of December 31, 2014 , we used an effective interest rate of 7.3 percent. (2) The fair value of capital leases reflects the present value of the leases using a 7.0 percent interest rate. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of the following: December 31, 2015 2014 URNA and subsidiaries debt: Accounts Receivable Securitization Facility (1) $ 571 $ 548 $2.5 billion ABL Facility (1) 1,579 1,293 5 3 / 4 percent Senior Secured Notes (2) — 741 8 3 / 8 percent Senior Subordinated Notes (2) — 740 7 3 / 8 percent Senior Notes 740 738 8 1 / 4 percent Senior Notes (2) 315 687 7 5 / 8 percent Senior Notes 1,306 1,303 6 1 / 8 percent Senior Notes 937 938 4 5 / 8 percent Senior Secured Notes (3) 989 — 5 3 / 4 percent Senior Notes 838 837 5 1 / 2 percent Senior Notes (3) 791 — Capital leases 96 105 Total URNA and subsidiaries debt 8,162 7,930 Holdings: 4 percent Convertible Senior Notes (4) — 32 Total debt (5) 8,162 7,962 Less short-term portion (607 ) (618 ) Total long-term debt $ 7,555 $ 7,344 (1) $873 and $48 were available under our ABL facility and accounts receivable securitization facility, respectively, at December 31, 2015 . The ABL facility availability is reflected net of $37 of letters of credit. At December 31, 2015 , the interest rates applicable to our ABL facility and accounts receivable securitization facility were 2.3 percent and 1.1 percent , respectively. (2) In 2015, we redeemed all of our 5 3 / 4 percent Senior Secured Notes and 8 3 / 8 percent Senior Subordinated Notes, and $ 350 principal amount of our 8 1 / 4 percent Senior Notes. Upon redemption, we recognized an aggregate loss of $ 121 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the redeemed notes. (3) In 2015, URNA issued $1.0 billion principal amount of 4 5 / 8 percent Senior Secured Notes and $ 800 principal amount of 5 1 / 2 percent Senior Notes. See below for additional detail. (4) The 4 percent Convertible Senior Notes matured in 2015. During the year ended December 31, 2015 , $ 34 principal amount of the 4 percent Convertible Senior Notes was redeemed. We recognized a loss of approximately $ 1 in interest expense, net upon redemption. The loss represented the difference between the net carrying amount and the fair value of the debt component of the notes. (5) In 2015, we adopted accounting guidance on the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. Total debt as of December 31, 2015 and 2014 is presented above in accordance with this new guidance. Under the new presentation, total debt as of December 31, 2014 as presented above decreased by $ 90 from the previously reported total debt. Short-term debt As of December 31, 2015 , our short-term debt primarily reflects $571 of borrowings under our accounts receivable securitization facility. As discussed below, in 2015, we amended and extended our accounts receivable securitization facility. During the year ended December 31, 2015 , the monthly average amount outstanding under the accounts receivable securitization facility, including both prior to and after the amendment and extension of the facility, was $516 and the weighted-average interest rate thereon was 0.8 percent . The maximum month-end amount outstanding under the accounts receivable securitization facility during the year ended December 31, 2015 , including both prior to and after the amendment and extension of the facility, was $608 . Accounts Receivable Securitization Facility . In September 2015, we amended and extended our accounts receivable securitization facility. The amended facility expires on August 30, 2016, has a facility size of $625 , 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, 2015 , there were $620 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). 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 in March 2015, the ABL facility was again amended and extended, with the size of the facility increased to $2.5 billion . 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 March 2020. 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, or (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. 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. The credit agreement also contains covenants that, unless certain financial and other conditions are satisfied, require URNA to satisfy various financial tests and to maintain certain financial ratios. As discussed below (see “Loan Covenants and Compliance”), the only material financial covenant that currently exists in the ABL facility is the fixed charge coverage ratio. As of December 31, 2015 , availability under the ABL facility has exceeded the required threshold and, as a result, this maintenance covenant is 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. 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. As of December 31, 2015 , the ABL facility was our only long-term variable rate debt instrument. During the year ended December 31, 2015 , the monthly average amount outstanding under the ABL facility, including both prior to and after the amendment and extension of the facility, was $1.5 billion and the weighted-average interest rate thereon was 1.9 percent . The maximum month-end amount outstanding under the ABL facility during the year ended December 31, 2015 , including both prior to and after the amendment and extension of the facility, was $1.8 billion. 7 3 / 8 percent Senior Notes . In March 2012 , a special purpose entity formed for the purpose of issuing the notes and subsequently merged into URNA ("Funding SPV") issued $ 750 aggregate principal amount of 7 3 / 8 percent Senior Notes (the “7 3 / 8 percent Notes”), which are due May 15, 2020 . The net proceeds from the sale of the 7 3 / 8 percent Notes were approximately $ 732 (after deducting the initial purchasers' fees and offering expenses). Upon consummation of the RSC merger, URNA assumed the 7 3 / 8 percent Notes. The 7 3 / 8 percent Notes are unsecured and are guaranteed by Holdings and, subject to limited exceptions, URNA's domestic subsidiaries. The 7 3 / 8 percent Notes may be redeemed on or after May 15, 2016 , at specified redemption prices that range from 103.688 percent in 2016 , to 100 percent in 2018 and thereafter, plus accrued and unpaid interest. The indenture governing the 7 3 / 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) dividends, other payments and other matters 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 these 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 7 3 / 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. 8 1 / 4 percent Senior Notes. In January 2011, RSC issued $ 650 aggregate principal amount of 8 1 / 4 percent Senior Notes (the “8 1 / 4 percent Notes”), which are due February 1, 2021 . Upon consummation of the RSC merger, URNA assumed the 8 1 / 4 percent Notes. In 2015, we redeemed $ 350 principal amount of the 8 1 / 4 percent Notes. The 8 1 / 4 percent Notes are unsecured and are guaranteed by URNA's domestic subsidiaries, subject to limited exceptions. The 8 1 / 4 percent Notes may be redeemed on or after February 1, 2016 at specified redemption prices that range from 104.125 percent in 2016 to 100 percent in 2019 and thereafter. The indenture governing the 8 1 / 4 percent Notes contains certain restrictive covenants that apply to URNA and its restricted subsidiaries, including, among others, limitations on their ability to (i) incur additional debt; (ii) pay dividends or distributions on their capital stock or repurchase their capital stock; (iii) make certain investments; (iv) create liens on their assets to secure debt; (v) enter into transactions with affiliates; (vi) create limitations on the ability of the restricted subsidiaries to make dividends or distributions to their respective parents; (vii) merge or consolidate with another company and (viii) transfer and sell assets. 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 8 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. The difference between the December 31, 2015 carrying value of the 8 1 / 4 percent Notes and the $300 principal amount relates to the $15 unamortized portion of the fair value adjustment recognized upon consummation of the RSC merger, which is being amortized through the above maturity date. The effective interest rate on the 8 1 / 4 percent Notes is 7.0 percent. 7 5 / 8 percent Senior Notes . In March 2012 , Funding SPV issued $ 1.325 billion aggregate principal amount of 7 5 / 8 percent Senior Notes (the “7 5 / 8 percent Notes”), which are due April 15, 2022 . The net proceeds from the sale of the 7 5 / 8 percent Notes were approximately $ 1.295 billion (after deducting the initial purchasers' fees and offering expenses). Upon consummation of the RSC merger, URNA assumed the 7 5 / 8 percent Notes. The 7 5 / 8 percent Notes are unsecured and are guaranteed by Holdings and, subject to limited exceptions, URNA's domestic subsidiaries. The 7 5 / 8 percent Notes may be redeemed on or after April 15, 2017 , at specified redemption prices that range from 103.813 percent in 2017 , to 100 percent in 2020 and thereafter, plus accrued and unpaid interest. The indenture governing the 7 5 / 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) dividends, other payments and other matters 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 these 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 7 5 / 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. 6 1 / 8 percent Senior Notes. In October 2012, URNA issued $ 400 aggregate principal amount of 6 1 / 8 percent Senior Notes (the “6 1 / 8 percent Notes”), which are due June 15, 2023 . In March 2014, URNA issued $ 525 principal amount of 6 1 / 8 percent Notes as an add on to the existing 6 1 / 8 percent Notes. The notes issued in March 2014 have identical terms, and are fungible, with the existing 6 1 / 8 percent Notes. The net proceeds from the issuances of the 6 1 / 8 percent Notes were $ 939 (after deducting offering expenses). The 6 1 / 8 percent Notes are unsecured and are guaranteed by Holdings and, subject to limited exceptions, URNA's domestic subsidiaries. The 6 1 / 8 percent Notes may be redeemed by URNA on or after December 15, 2017 , at specified redemption prices that range from 103.063 percent in 2017 to 100 percent in 2020 and thereafter. The indenture governing the 6 1 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) additional indebtedness; (ii) restricted payments; (iii) liens; (iv) asset sales; (v) preferred stock of certain subsidiaries; (vi) transactions with affiliates; (vii) dividends and other payments; (viii) designations of unrestricted subsidiaries; (ix) additional subsidiary guarantees and (x) mergers, consolidations or sales of substantially all of our assets. 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 6 1 / 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 6 1 / 8 percent Notes includes the $ 23 unamortized portion of the original issue premium recognized in conjunction with the March 2014 issuance, which is being amortized through the maturity date in 2023. The effective interest rate on the 6 1 / 8 percent Senior Notes is 5.7 percent . 4 5 / 8 percent Senior Secured Notes. In March 2015, URNA issued $ 1.0 billion aggregate principal amount of 4 5 / 8 percent Senior Secured Notes (the “4 5 / 8 percent Notes”), which are due July 15, 2023. The net proceeds from issuance were approximately $ 990 (after deducting offering expenses). The 4 5 / 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, subject to certain exceptions. The 4 5 / 8 percent Notes may be redeemed on or after July 15, 2018, at specified redemption prices that range from 103.469 percent in 2018, to 100 percent in 2021 and thereafter, plus accrued and unpaid interest, if any. The indenture governing the 4 5 / 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. The indenture also includes covenants relating to the grant of and maintenance of liens for the benefit of the notes collateral agent. 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 4 5 / 8 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. 5 3 / 4 percent Senior Notes. In March 2014, URNA issued $ 850 aggregate principal amount of 5 3 / 4 percent Senior Notes (the “5 3 / 4 percent Notes”), which are due November 15, 2024. The net proceeds from the issuance were $ 837 (after deducting offering expenses). The 5 3 / 4 percent Notes are unsecured and are guaranteed by Holdings and, subject to limited exceptions, URNA's domestic subsidiaries. The 5 3 / 4 percent Notes may be redeemed on or after May 15, 2019, at specified redemption prices that range from 102.875 percent in the 12-month period commencing on May 15, 2019, to 100 percent in the 12-month period commencing on May 15, 2022 and thereafter, plus accrued and unpaid interest. The indenture governing the 5 3 / 4 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 these 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 3 / 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. 5 1 / 2 percent Senior Notes. In March 2015, URNA issued $ 800 aggregate principal amount of 5 1 / 2 percent Senior Notes (the “5 1 / 2 percent Notes”), which are due July 15, 2025. The net proceeds from the issuance were approximately $ 792 (after deducting offering expenses). The 5 1 / 2 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 5 1 / 2 percent Notes may be redeemed on or after July 15, 2020, at specified redemption prices that range from 102.75 percent in 2020, to 100 percent in 2023 and thereafter, plus accrued and unpaid interest, if any. The indenture governing the 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 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. Loan Covenants and Compliance As of December 31, 2015 , we were in compliance with the covenants and other provisions of the ABL facility, the accounts receivable securitization facility and the senior notes. Any failure to be in compliance with any material provision or covenant of these agreements could have a material adverse effect on our liquidity and operations. The only financial covenant that currently exists under the ABL facility is the fixed charge coverage ratio. Subject to certain limited exceptions specified in the ABL facility, the fixed charge coverage ratio covenant under the ABL facility will only apply in the future if specified availability under the ABL facility falls below 10 percent of the maximum revolver amount under the ABL facility. When certain conditions are met, cash and cash equivalents and borrowing base collateral in excess of the ABL facility size may be included when calculating specified availability under the ABL facility. As of December 31, 2015 , specified availability under the ABL facility exceeded the required threshold and, as a result, this maintenance covenant is inapplicable. Under our accounts receivable securitization facility, we are required, among other things, to maintain certain financial tests relating to: (i) the default ratio, (ii) the delinquency ratio, (iii) the dilution ratio and (iv) days sales outstanding. The accounts receivable securitization facility also requires us to comply with the fixed charge coverage ratio under the ABL facility, to the extent the ratio is applicable under the ABL facility. Maturities Maturities of the Company’s debt (exclusive of any unamortized original issue discounts or premiums, and unamortized debt issuance costs) for each of the next five years and thereafter at December 31, 2015 are as follows: 2016 $ 607 2017 24 2018 17 2019 9 2020 2,343 Thereafter 5,206 Total $ 8,206 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the provision for income taxes for each of the three years in the period ended December 31, 2015 are as follows: Year ended December 31, 2015 2014 2013 Current Federal $ 13 $ 2 $ 10 Foreign 15 42 39 State and local 14 5 2 42 49 51 Deferred Federal 300 240 149 Foreign 5 2 4 State and local 31 19 14 336 261 167 Total $ 378 $ 310 $ 218 A reconciliation of the provision for income taxes and the amount computed by applying the statutory federal income tax rate of 35 percent to the income before provision for income taxes for each of the three years in the period ended December 31, 2015 is as follows: Year ended December 31, 2015 2014 2013 Computed tax at statutory tax rate $ 337 $ 297 $ 212 State income taxes, net of federal tax benefit 41 22 15 Non-deductible expenses and other 8 8 8 Foreign taxes (8 ) (17 ) (17 ) Total $ 378 $ 310 $ 218 The components of deferred income tax assets (liabilities) are as follows: December 31, 2015 December 31, 2014 Reserves and allowances $ 112 $ 107 Intangibles — 1 Debt cancellation and other 48 58 Net operating loss and credit carryforwards 73 237 Total deferred tax assets 233 403 Property and equipment (1,714 ) (1,535 ) Intangibles (272 ) (312 ) Valuation allowance (12 ) — Total deferred tax liability (1,998 ) (1,847 ) Total deferred income tax liability (1) $ (1,765 ) $ (1,444 ) (1) In 2015, we adopted guidance that requires that deferred tax liabilities and assets be classified as non-current in the balance sheet. The total deferred income tax liability as of December 31, 2015 and 2014 is presented above in accordance with this new guidance. See note 2 to our consolidated financial statements for additional detail. The following table summarizes the activity related to unrecognized tax benefits, some of which would impact our effective tax rate if recognized: 2015 2014 Balance at January 1 $ 7 $ 7 Additions for tax positions of prior years 1 — Reductions for tax positions of prior years (1 ) — Settlements (4 ) — Balance at December 31 $ 3 $ 7 We include interest accrued on the underpayment of income taxes in interest expense, and penalties, if any, related to unrecognized tax benefits in selling, general and administrative expense. Interest expense of less than $1 related to income tax was reflected in our consolidated statements of income for each of the years ended December 31, 2015 , 2014 and 2013 . We file income tax returns in the United States and in Canada. With few exceptions, 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 2010. The Internal Revenue Service (“IRS”) has completed audits for periods prior to 2010. Canadian authorities have concluded income tax audits for periods through 2010. Included in the balance of unrecognized tax benefits at December 31, 2015 are certain tax positions associated with Canadian transfer pricing. The Company has submitted a request to Canadian Competent Authority for an Advanced Pricing Arrangement ("APA") associated with our intercompany transactions. It is reasonably possible that the APA request will be concluded within the next 12 months, and that the conclusion of the request will result in a settlement of reported unrecognized tax benefits for those tax positions during the next 12 months. However, it is not possible to estimate the amount of the change, if any, to the previously recorded uncertain tax positions. For financial reporting purposes, income before provision for income taxes for our foreign subsidiaries was $70 , $168 and $153 for the years ended December 31, 2015 , 2014 and 2013 , respectively. At December 31, 2015 , unremitted earnings of foreign subsidiaries were approximately $651 . Since it is our intention to indefinitely reinvest these earnings, no U.S. taxes have been provided for these amounts. If we changed our reinvestment policy and decided to remit earnings as a dividend, a deferred tax liability would arise. Determination of the amount of unrecognized deferred tax liability on these unremitted taxes is not practicable. We have net operating loss carryforwards (“NOLs”) of $667 for state income tax purposes that expire from 2016 through 2035. We have recorded valuation allowances against this deferred asset of $12 and less than $1 as of December 31, 2015 and 2014 , respectively. The increase in 2015 primarily reflects the enactment of Connecticut state limitations on net operating loss utilization. We have no NOLs recorded for federal income tax purposes. We have a federal alternative minimum tax (“AMT”) credit carryforward of $ 39 . We have not recorded a valuation allowance against the AMT credit carryforward because it is deemed more likely than not that such benefits will be realized in the future. There were no new NOLs for federal income tax purposes recognized in 2015 . In 2015 , the Company utilized $463 of existing NOLs to offset tax liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
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 auto 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. Operating Leases We lease rental equipment, real estate and certain office equipment under operating leases. Certain real estate leases require us to pay maintenance, insurance, taxes and certain other expenses in addition to the stated rental payments. Future minimum lease payments by year and in the aggregate, for non-cancelable operating leases with initial or remaining terms of one year or more are as follows at December 31, 2015 : Real Non-Rental 2016 $ 100 $ 38 2017 82 36 2018 63 29 2019 45 23 2020 26 23 Thereafter 44 — Total $ 360 $ 149 Our real estate leases provide for varying terms, including customary escalation clauses. We evaluate our operating leases in accordance with GAAP. Our leases generally include default provisions that are customary, and do not contain material adverse change clauses, cross-default provisions or subjective default provisions. In these leases, the occurrence of an event of default is objectively determinable based on predefined criteria. Based on the facts and circumstances that existed at lease inception and with consideration of our history as a lessee, we believe that it is reasonable to assume that an event of default will not occur. Rent expense under all non-cancelable real estate, rental equipment and other equipment operating leases totaled $139 , $131 and $135 for the years ended December 31, 2015 , 2014 and 2013 , respectively. Capital Leases Capital lease obligations consist primarily of vehicle and building leases with periods expiring at various dates through 2028. Capital lease obligations were $ 96 and $ 105 at December 31, 2015 and 2014 , respectively. The following table presents capital lease financial statement information for the years ended December 31, 2015 , 2014 and 2013 , except for balance sheet information, which is presented as of December 31, 2015 and 2014 : 2015 2014 2013 Depreciation of rental equipment $ 20 $ 20 $ 22 Non-rental depreciation and amortization 3 4 5 Rental equipment 186 177 Less accumulated depreciation (56 ) (45 ) Rental equipment, net 130 132 Property and equipment, net: Non-rental vehicles 8 13 Buildings 21 20 Less accumulated depreciation and amortization (16 ) (15 ) Property and equipment, net $ 13 $ 18 Future minimum lease payments for capital leases for each of the next five years and thereafter at December 31, 2015 are as follows: 2016 $ 38 2017 27 2018 19 2019 10 2020 4 Thereafter 9 Total 107 Less amount representing interest (1) (11 ) Capital lease obligations $ 96 (1) The weighted average interest rate on our capital lease obligations as of December 31, 2015 was approximately 5.9 percent . Employee Benefit Plans We currently sponsor a defined contribution 401(k) retirement plan, which is subject to the provisions of the Employee Retirement Income Security Act of 1974. We also sponsor a deferred profit sharing 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 $22 , $19 and $17 in the years ended December 31, 2015 , 2014 and 2013 , respectively. Environmental Matters The Company and its operations are subject to various laws and related regulations governing environmental matters. Under such laws, an owner or lessee of real estate may be liable for the costs of removal or remediation of certain hazardous or toxic substances located on or in, or emanating from, such property, as well as investigation of property damage. We incur ongoing expenses associated with the removal of underground storage tanks and the performance of appropriate remediation at certain of our locations. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Equity and Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock | Common Stock We have 500 million authorized shares of common stock, $0.01 par value. At December 31, 2015 and 2014 , there were (i) 0.6 million and 0.7 million shares of common stock reserved for issuance pursuant to options granted under our stock option plans, respectively, and (ii) 0.0 million and 3.8 million shares of common stock reserved for the conversion of 4 percent Convertible Notes, respectively. The 4 percent Convertible Senior Notes matured in 2015. As of December 31, 2015 , there were an aggregate of 0.7 million outstanding time and performance-based RSUs and 5.5 million shares available for grant of stock and options under our 2010 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 January 1, 2013 1,288 $ 13.69 Granted 74 53.78 Exercised (484 ) 12.22 Canceled (3 ) 23.63 Outstanding at December 31, 2013 875 17.85 Granted — — Exercised (213 ) 11.21 Canceled (10 ) 19.98 Outstanding at December 31, 2014 652 19.99 Granted — — Exercised (87 ) 13.54 Canceled (4 ) 20.29 Outstanding at December 31, 2015 561 20.99 Exercisable at December 31, 2013 684 $ 11.67 Exercisable at December 31, 2014 564 $ 16.18 Exercisable at December 31, 2015 537 $ 19.49 As of December 31, 2015 (options in thousands): Options Outstanding Options Exercisable Range of Exercise Prices Amount Weighted Weighted Amount Weighted $0.01-5.00 100 3.2 $ 3.38 100 $ 3.38 5.01-10.00 189 4.2 8.32 189 8.32 10.01-15.00 14 3.1 14.45 14 14.45 15.01-20.00 20 3.7 15.58 20 15.58 25.01-30.00 51 3.5 25.85 51 25.85 30.01-35.00 62 5.2 31.49 62 31.49 40.01-45.00 51 6.1 41.25 51 41.25 50.01-55.00 74 7.2 53.78 50 53.78 561 $ 20.99 537 $ 19.49 The following table presents information associated with options as of December 31, 2015 and 2014 , and for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Intrinsic value of options outstanding as of December 31 $ 29 $ 53 Intrinsic value of options exercisable as of December 31 28 48 Intrinsic value of options exercised 7 17 21 Weighted-average grant date fair value per option $ — $ — $ 24.56 In addition to stock options, the Company issues time-based and performance-based RSUs to certain officers and key executives under various 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 over the performance period which is currently the calendar year. There were 597 thousand shares of common stock issued upon vesting of RSUs during 2015 , net of 351 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, 2015 2014 2013 RSUs granted 463 805 894 Weighted-average grant date price per unit $ 86.84 $ 92.28 $ 57.50 As of December 31, 2015 , the total pretax compensation cost not yet recognized by the Company with regard to unvested RSUs was $ 26 . The weighted-average period over which this compensation cost is expected to be recognized is 1.6 years. We issued $ 15 of restricted stock in connection with the National Pump acquisition discussed in note 3 to our consolidated financial statements. We are recording stock compensation expense associated with these grants over the restriction period which is generally three years. We recorded $5 and $4 of expense related to these grants in the years ended December 31, 2015 and 2014 , respectively. A summary of RSU activity for the year ended December 31, 2015 follows (RSUs in thousands): Stock Units Weighted-Average Nonvested as of December 31, 2014 702 $ 68.11 Granted 463 86.84 Vested (599 ) 68.75 Forfeited (36 ) 94.30 Nonvested as of December 31, 2015 530 $ 81.94 The total fair value of RSUs vested during the fiscal years ended December 31, 2015 , 2014 and 2013 was $ 84 , $ 54 , and $ 53 , respectively. Stockholders’ Rights Plan. Our stockholders' rights plan expired in accordance with its terms on September 27, 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, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) First Second Third Fourth Full For the year ended December 31, 2015 (1): Total revenues $ 1,315 $ 1,429 $ 1,550 $ 1,523 $ 5,817 Gross profit 524 618 690 648 2,480 Operating income 300 375 446 397 1,518 Net income 115 86 215 169 585 Earnings per share—basic 1.19 0.89 2.28 1.82 6.14 Earnings per share—diluted (3) 1.16 0.88 2.25 1.81 6.07 For the year ended December 31, 2014 (2): Total revenues $ 1,178 $ 1,399 $ 1,544 $ 1,564 $ 5,685 Gross profit 448 589 688 707 2,432 Operating income 218 325 422 426 1,391 Net income 60 94 192 194 540 Earnings per share—basic 0.63 0.98 1.95 1.96 5.54 Earnings per share—diluted (3) 0.56 0.90 1.84 1.88 5.15 (1) The fourth quarter of 2015 includes a decrease in stock compensation, net of $14 as compared to the fourth quarter of 2014 primarily due to lower than expected revenue and profitability. Additionally, as discussed in note 5 to our consolidated financial statements, in the fourth quarter of 2015 , we initiated a restructuring program in response to recent challenges in our operating environment. Though we expect solid industry growth in 2016, the restructuring program was initiated in an effort to reduce costs in an environment with continuing pressures on volume and pricing. We expect to complete the restructuring program in 2016, and recognized $4 of costs for the program in the fourth quarter of 2015 . Additionally, during the fourth quarter of 2015, we reached agreement on a settlement that will provide us with a $5 refund on previously paid property taxes. We recognized a reduction of $5 in cost of equipment rentals, excluding depreciation, associated with the settlement during the fourth quarter of 2015. Additionally, our provision for income taxes for the fourth quarter of 2015 includes the impact of a $5 increase in valuation allowances resulting from the enactment of Connecticut state limitations on net operating loss utilization. (2) The fourth quarter of 2014 includes an increase in bad debt expense of $8 as compared to the fourth quarter of 2013 primarily due to improved receivable aging which reduced the expense in the fourth quarter of 2013. Additionally, the fourth quarter of 2014 includes an increase in stock compensation, net of $ 14 as compared to the fourth quarter of 2013 primarily due to improved profitability which resulted in increased performance based stock compensation. (3) Diluted earnings per share includes the after-tax impacts of the following: First Second Third Fourth Full For the year ended December 31, 2015: Merger related costs (4) $ 0.17 $ — $ — $ — $ 0.17 Merger related intangible asset amortization (5) (0.32 ) (0.27 ) (0.28 ) (0.28 ) (1.15 ) Impact on depreciation related to acquired RSC fleet and property and equipment (6) 0.01 — — — 0.02 Impact of the fair value mark-up of acquired RSC fleet (7) (0.04 ) (0.04 ) (0.04 ) (0.07 ) (0.19 ) Impact on interest expense related to fair value adjustment of acquired RSC indebtedness (8) 0.01 — — — 0.02 Restructuring charge (9) — — — (0.03 ) (0.04 ) Loss on extinguishment of debt securities and amendment of ABL facility (0.01 ) (0.76 ) — — (0.78 ) For the year ended December 31, 2014: Merger related costs (4) $ (0.01 ) $ (0.05 ) $ (0.02 ) $ 0.02 $ (0.06 ) Merger related intangible asset amortization (5) (0.22 ) (0.29 ) (0.29 ) (0.30 ) (1.10 ) Impact on depreciation related to acquired RSC fleet and property and equipment (6) — 0.01 0.01 0.01 0.03 Impact of the fair value mark-up of acquired RSC fleet (7) (0.05 ) (0.06 ) (0.05 ) (0.05 ) (0.21 ) Impact on interest expense related to fair value adjustment of acquired RSC indebtedness (8) 0.01 0.01 — 0.01 0.03 Restructuring charge (9) (0.01 ) 0.01 0.01 — 0.01 Loss on extinguishment of debt securities (0.06 ) (0.38 ) (0.02 ) — (0.46 ) (4) This primarily reflects transaction costs associated with the National Pump acquisition discussed above. The income during the year ended December 31, 2015 reflects a decline in the fair value of the contingent cash consideration component of the National Pump purchase price. For additional information concerning the National Pump acquisition, see note 3 to our consolidated financial statements. (5) This reflects the amortization of the intangible assets acquired in the RSC and National Pump acquisitions. (6) This reflects the impact of extending the useful lives of equipment acquired in the RSC acquisition, net of the impact of additional depreciation associated with the fair value mark-up of such equipment. (7) 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 acquisition and subsequently sold. (8) This reflects a reduction of interest expense associated with the fair value mark-up of debt acquired in the RSC acquisition. (9) As discussed in note 5 to our consolidated financial statements, this reflects severance costs and branch closure charges associated with our closed restructuring programs and our current restructuring program. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period. The diluted earnings per share for the year ended December 31, 2013 excludes the impact of approximately 0.3 million common stock equivalents, since the effect of including these securities would be anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share (shares in thousands): Year Ended December 31, 2015 2014 2013 Numerator: Net income available to common stockholders $ 585 $ 540 $ 387 Denominator: Denominator for basic earnings per share—weighted-average common shares 95,170 97,489 93,436 Effect of dilutive securities: Employee stock options and warrants 300 394 504 4 percent Convertible Senior Notes 660 6,386 11,769 Restricted stock units 249 687 582 Denominator for diluted earnings per share—adjusted weighted-average common shares 96,379 104,956 106,291 Basic earnings per share $ 6.14 $ 5.54 $ 4.14 Diluted earnings per share $ 6.07 $ 5.15 $ 3.64 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information of Guarantor Subsidiaries | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information of Guarantor Subsidiaries | Condensed Consolidating Financial Information of Guarantor Subsidiaries URNA is 100 percent owned by Holdings (“Parent”) and has outstanding (i) certain indebtedness that is guaranteed by Parent, (ii) certain indebtedness that is guaranteed by both Parent and, with the exception of its U.S. special purpose vehicle which holds receivable assets relating to the Company’s accounts receivable securitization facility (the “SPV”), all of URNA’s U.S. subsidiaries (the “guarantor subsidiaries”) and (iii) certain indebtedness that is guaranteed only by the guarantor subsidiaries (specifically, the 8 1 / 4 percent Senior Notes). Other than the guarantee by certain Canadian subsidiaries of URNA's indebtedness under the ABL facility, none of URNA’s indebtedness is guaranteed by URNA's foreign subsidiaries or the SPV (together, the “non-guarantor subsidiaries”). The receivable assets owned by the SPV have been sold by URNA to the SPV and are not available to satisfy the obligations of URNA or Parent’s other subsidiaries. The guarantor subsidiaries are all 100 percent -owned and the guarantees are made on a joint and several basis. The guarantees are not full and unconditional because a guarantor subsidiary can be automatically released and relieved of its obligations under certain circumstances, including sale of the guarantor subsidiary, the sale of all or substantially all of the guarantor subsidiary's assets, the requirements for legal defeasance or covenant defeasance under the applicable indenture being met or designating the guarantor subsidiary as an unrestricted subsidiary for purposes of the applicable covenants. The guarantees are also subject to subordination provisions (to the same extent that the obligations of the issuer under the relevant notes are subordinated to other debt of the issuer) and to a standard limitation which provides that the maximum amount guaranteed by each guarantor will not exceed the maximum amount that can be guaranteed without making the guarantee void under fraudulent conveyance laws. Based on our understanding of Rule 3-10 of Regulation S-X ("Rule 3-10"), we believe that the guarantees of the guarantor subsidiaries comply with the conditions set forth in Rule 3-10 and therefore continue to utilize Rule 3-10 to present condensed consolidating financial information for Holdings, URNA, the guarantor subsidiaries and the non-guarantor subsidiaries. Separate consolidated financial statements of the guarantor subsidiaries have not been presented because management believes that such information would not be material to investors. However, condensed consolidating financial information is presented. URNA covenants in the ABL facility, accounts receivable securitization facility and the other agreements governing our debt impose operating and financial restrictions on URNA, Parent and the guarantor subsidiaries, including limitations on the ability to make share repurchases and dividend payments. As of December 31, 2015 , the amount available for distribution under the most restrictive of these covenants was $ 355 . The Company’s total available capacity for making share repurchases and dividend payments includes the intercompany receivable balance of Parent. As of December 31, 2015 , our total available capacity for making share repurchases and dividend payments, which includes URNA’s capacity to make restricted payments and the intercompany receivable balance of Parent, was $ 499 . The condensed consolidating financial information of Parent and its subsidiaries is as follows: CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2015 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total ASSETS Cash and cash equivalents $ — $ 18 $ — $ 161 $ — $ — $ 179 Accounts receivable, net — 41 — 104 785 — 930 Intercompany receivable (payable) 144 40 (176 ) (109 ) — 101 — Inventory — 62 — 7 — — 69 Prepaid expenses and other assets — 98 — 18 — — 116 Total current assets 144 259 (176 ) 181 785 101 1,294 Rental equipment, net — 5,657 — 529 — — 6,186 Property and equipment, net 45 334 20 46 — — 445 Investments in subsidiaries 1,307 958 924 — — (3,189 ) — Goodwill — 3,000 — 243 — — 3,243 Other intangibles, net — 838 — 67 — — 905 Other long-term assets 3 7 — — — — 10 Total assets $ 1,499 $ 11,053 $ 768 $ 1,066 $ 785 $ (3,088 ) $ 12,083 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 1 $ 34 $ — $ — $ 572 $ — $ 607 Accounts payable — 237 — 34 — — 271 Accrued expenses and other liabilities — 314 14 27 — — 355 Total current liabilities 1 585 14 61 572 — 1,233 Long-term debt 4 7,430 110 11 — — 7,555 Deferred taxes 18 1,677 — 70 — — 1,765 Other long-term liabilities — 54 — — — — 54 Total liabilities 23 9,746 124 142 572 — 10,607 Temporary equity — — — — — — — Total stockholders’ equity (deficit) 1,476 1,307 644 924 213 (3,088 ) 1,476 Total liabilities and stockholders’ equity (deficit) $ 1,499 $ 11,053 $ 768 $ 1,066 $ 785 $ (3,088 ) $ 12,083 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2014 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total ASSETS Cash and cash equivalents $ — $ 8 $ — $ 150 $ — $ — $ 158 Accounts receivable, net — 37 — 144 759 — 940 Intercompany receivable (payable) 476 (428 ) (60 ) (109 ) — 121 — Inventory — 69 — 9 — — 78 Prepaid expenses and other assets — 113 1 8 — — 122 Total current assets 476 (201 ) (59 ) 202 759 121 1,298 Rental equipment, net — 5,399 — 609 — — 6,008 Property and equipment, net 43 331 21 43 — — 438 Investments in subsidiaries 1,330 1,185 1,040 — — (3,555 ) — Goodwill — 3,000 — 272 — — 3,272 Other intangibles, net — 1,014 — 92 — — 1,106 Other long-term assets — 7 — — — — 7 Total assets $ 1,849 $ 10,735 $ 1,002 $ 1,218 $ 759 $ (3,434 ) $ 12,129 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 32 $ 38 $ — $ — $ 548 $ — $ 618 Accounts payable — 248 — 37 — — 285 Accrued expenses and other liabilities — 499 19 57 — — 575 Total current liabilities 32 785 19 94 548 — 1,478 Long-term debt — 7,208 130 6 — — 7,344 Deferred taxes 19 1,348 — 77 — — 1,444 Other long-term liabilities — 64 — 1 — — 65 Total liabilities 51 9,405 149 178 548 — 10,331 Temporary equity 2 — — — — — 2 Total stockholders’ equity (deficit) 1,796 1,330 853 1,040 211 (3,434 ) 1,796 Total liabilities and stockholders’ equity (deficit) $ 1,849 $ 10,735 $ 1,002 $ 1,218 $ 759 $ (3,434 ) $ 12,129 CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2015 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Revenues: Equipment rentals $ — $ 4,452 $ — $ 497 $ — $ — $ 4,949 Sales of rental equipment — 480 — 58 — — 538 Sales of new equipment — 137 — 20 — — 157 Contractor supplies sales — 69 — 10 — — 79 Service and other revenues — 80 — 14 — — 94 Total revenues — 5,218 — 599 — — 5,817 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,603 — 223 — — 1,826 Depreciation of rental equipment — 881 — 95 — — 976 Cost of rental equipment sales — 279 — 32 — — 311 Cost of new equipment sales — 115 — 16 — — 131 Cost of contractor supplies sales — 48 — 7 — — 55 Cost of service and other revenues — 33 — 5 — — 38 Total cost of revenues — 2,959 — 378 — — 3,337 Gross profit — 2,259 — 221 — — 2,480 Selling, general and administrative expenses 5 596 1 79 33 — 714 Merger related costs — (26 ) — — — — (26 ) Restructuring charge — 5 — 1 — — 6 Non-rental depreciation and amortization 15 228 1 24 — — 268 Operating (loss) income (20 ) 1,456 (2 ) 117 (33 ) — 1,518 Interest (income) expense, net (3 ) 559 8 3 5 (5 ) 567 Other (income) expense, net (1) (471 ) 513 — 44 (98 ) — (12 ) Income (loss) before provision (benefit) for income taxes 454 384 (10 ) 70 60 5 963 Provision (benefit) for income taxes 201 141 (5 ) 18 23 — 378 Income (loss) before equity in net earnings (loss) of subsidiaries 253 243 (5 ) 52 37 5 585 Equity in net earnings (loss) of subsidiaries 332 89 52 — — (473 ) — Net income (loss) 585 332 47 52 37 (468 ) 585 Other comprehensive (loss) income (176 ) (176 ) (175 ) (139 ) — 490 (176 ) Comprehensive income (loss) $ 409 $ 156 $ (128 ) $ (87 ) $ 37 $ 22 $ 409 (1) Other (income) expense, net includes an adjustment to the amount of royalties Holdings receives from URNA and its subsidiaries as discussed above (see Item 7- Management’s Discussion and Analysis of Financial Condition and Results of Operations- Liquidity and Capital Resources- Relationship between Holdings and URNA). CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2014 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Revenues: Equipment rentals $ — $ 4,217 $ — $ 602 $ — $ — $ 4,819 Sales of rental equipment — 478 — 66 — — 544 Sales of new equipment — 124 — 25 — — 149 Contractor supplies sales — 70 — 15 — — 85 Service and other revenues — 73 — 15 — — 88 Total revenues — 4,962 — 723 — — 5,685 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,558 — 248 — — 1,806 Depreciation of rental equipment — 820 — 101 — — 921 Cost of rental equipment sales — 277 — 38 — — 315 Cost of new equipment sales — 101 — 19 — — 120 Cost of contractor supplies sales — 49 — 10 — — 59 Cost of service and other revenues — 27 — 5 — — 32 Total cost of revenues — 2,832 — 421 — — 3,253 Gross profit — 2,130 — 302 — — 2,432 Selling, general and administrative expenses 55 607 3 84 9 — 758 Merger related costs — 11 — — — — 11 Restructuring charge — (1 ) — — — — (1 ) Non-rental depreciation and amortization 17 226 1 29 — — 273 Operating (loss) income (72 ) 1,287 (4 ) 189 (9 ) — 1,391 Interest expense (income), net 9 538 5 4 5 (6 ) 555 Other (income) expense, net (149 ) 212 (3 ) 17 (91 ) — (14 ) Income (loss) before provision for income taxes 68 537 (6 ) 168 77 6 850 Provision for income taxes 1 236 — 43 30 — 310 Income (loss) before equity in net earnings (loss) of subsidiaries 67 301 (6 ) 125 47 6 540 Equity in net earnings (loss) of subsidiaries 473 172 125 — — (770 ) — Net income (loss) 540 473 119 125 47 (764 ) 540 Other comprehensive (loss) income (93 ) (93 ) (90 ) (72 ) — 255 (93 ) Comprehensive income (loss) $ 447 $ 380 $ 29 $ 53 $ 47 $ (509 ) $ 447 CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2013 Non-Guarantor Parent URNA Guarantor Foreign SPV (1) Eliminations Total Revenues: Equipment rentals $ — $ 3,612 $ — $ 584 $ — $ — $ 4,196 Sales of rental equipment — 438 — 52 — — 490 Sales of new equipment — 82 — 22 — — 104 Contractor supplies sales — 70 — 17 — — 87 Service and other revenues — 62 — 16 — — 78 Total revenues — 4,264 — 691 — — 4,955 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,391 — 243 — — 1,634 Depreciation of rental equipment — 752 — 100 — — 852 Cost of rental equipment sales — 283 — 31 — — 314 Cost of new equipment sales — 67 — 17 — — 84 Cost of contractor supplies sales — 48 — 11 — — 59 Cost of service and other revenues — 19 — 6 — — 25 Total cost of revenues — 2,560 — 408 — — 2,968 Gross profit — 1,704 — 283 — — 1,987 Selling, general and administrative expenses 8 541 — 88 5 — 642 Merger related costs — 9 — — — — 9 Restructuring charge — 12 — — — — 12 Non-rental depreciation and amortization 17 210 — 19 — — 246 Operating (loss) income (25 ) 932 — 176 (5 ) — 1,078 Interest expense (income), net 12 454 6 5 5 (7 ) 475 Interest expense-subordinated convertible debentures 3 — — — — — 3 Other (income) expense, net (132 ) 191 — 18 (82 ) — (5 ) Income (loss) before provision (benefit) for income taxes 92 287 (6 ) 153 72 7 605 Provision (benefit) for income taxes 38 113 (2 ) 41 28 — 218 Income (loss) before equity in net earnings (loss) of subsidiaries 54 174 (4 ) 112 44 7 387 Equity in net earnings (loss) of subsidiaries 333 159 112 — — (604 ) — Net income (loss) 387 333 108 112 44 (597 ) 387 Other comprehensive (loss) income (65 ) (65 ) (65 ) (50 ) — 180 (65 ) Comprehensive income (loss) $ 322 $ 268 $ 43 $ 62 $ 44 $ (417 ) $ 322 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Year Ended December 31, 2015 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Net cash provided by (used in) operating activities $ 13 $ 1,804 $ (3 ) $ 170 $ 11 $ — $ 1,995 Net cash used in investing activities (13 ) (1,035 ) — (122 ) — — (1,170 ) Net cash (used in) provided by financing activities — (759 ) 3 (8 ) (11 ) — (775 ) Effect of foreign exchange rates — — — (29 ) — — (29 ) Net increase in cash and cash equivalents — 10 — 11 — — 21 Cash and cash equivalents at beginning of period — 8 — 150 — — 158 Cash and cash equivalents at end of period $ — $ 18 $ — $ 161 $ — $ — $ 179 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Year Ended December 31, 2014 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Net cash provided by (used in) operating activities $ 13 $ 1,644 $ 4 $ 223 $ (83 ) $ — $ 1,801 Net cash used in investing activities (13 ) (1,773 ) — (214 ) — — (2,000 ) Net cash provided by (used in) financing activities — 120 (4 ) (3 ) 83 — 196 Effect of foreign exchange rates — — — (14 ) — — (14 ) Net decrease in cash and cash equivalents — (9 ) — (8 ) — — (17 ) Cash and cash equivalents at beginning of period — 17 — 158 — — 175 Cash and cash equivalents at end of period $ — $ 8 $ — $ 150 $ — $ — $ 158 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Year Ended December 31, 2013 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Net cash provided by operating activities $ 26 $ 1,285 $ 4 $ 216 $ 20 $ — $ 1,551 Net cash used in investing activities (26 ) (1,018 ) — (133 ) — — (1,177 ) Net cash used in financing activities — (270 ) (4 ) (1 ) (20 ) — (295 ) Effect of foreign exchange rate — — — (10 ) — — (10 ) Net (decrease) increase in cash and cash equivalents — (3 ) — 72 — — 69 Cash and cash equivalents at beginning of period — 20 — 86 — — 106 Cash and cash equivalents at end of period $ — $ 17 $ — $ 158 $ — $ — $ 175 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS UNITED RENTALS, INC. (In millions) Description Balance at Charged to Deductions Balance Year ended December 31, 2015: Allowance for doubtful accounts $ 43 $ 32 $ 20 (a) $ 55 Reserve for obsolescence and shrinkage 3 18 17 (b) 4 Self-insurance reserve 92 110 112 (c) 90 Year ended December 31, 2014: Allowance for doubtful accounts $ 49 $ 13 $ 19 (a) $ 43 Reserve for obsolescence and shrinkage 3 18 18 (b) 3 Self-insurance reserve 94 105 107 (c) 92 Year ended December 31, 2013: Allowance for doubtful accounts $ 64 $ 4 $ 19 (a) $ 49 Reserve for obsolescence and shrinkage 3 16 16 (b) 3 Self-insurance reserve 97 92 95 (c) 94 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) Represents write-offs of accounts, net of recoveries. (b) Represents write-offs. (c) Represents payments. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 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. 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 and Property and 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 to 12 years. Rental equipment is depreciated to a salvage value of zero to 10 percent of cost. Rental equipment is depreciated whether or not it is out on rent. Costs we incur in connection with refurbishment programs that extend the life of our equipment are capitalized and amortized over the remaining useful life of the equipment. The costs incurred under these refurbishment programs were $30 , $39 and $44 for the years ended December 31, 2015 , 2014 and 2013 , respectively, and are included in purchases of rental equipment in our consolidated statements of cash flows. Ordinary repair and maintenance costs are charged to operations as incurred. Repair and maintenance costs are included in cost of revenues on our consolidated statements of income. Repair and maintenance expense (including both labor and parts) for our rental equipment was $628 , $604 and $563 for the years ended December 31, 2015 , 2014 and 2013 , respectively. 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 to 39 years. Ordinary repair and maintenance costs are charged to expense as incurred. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the remaining life of the lease, whichever is shorter. |
Purchase Price Allocation | Purchase Price Allocation We have made a number of acquisitions in the past (including the National Pump acquisition discussed in note 3 to our consolidated financial statements) 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. The intangible assets that we have acquired are non-compete agreements, customer relationships and trade names and associated trademarks. 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. 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 | 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. We review goodwill for impairment utilizing a two-step process. The first step of the impairment test requires a comparison of the fair value of each of our reporting units' net assets to the respective carrying value of net assets. If the carrying value of a reporting unit's net assets is less than its fair value, no indication of impairment exists and a second step is not performed. If the carrying amount of a reporting unit's net assets is higher than its fair value, there is an indication that an impairment may exist and a second step must be performed. In the second step, the impairment is calculated 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. If the carrying amount of the reporting unit's goodwill is greater than the implied fair value of its goodwill, an impairment loss must be recognized for the excess and charged to operations. 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 as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. In connection with our goodwill impairment test that was conducted as of October 1, 2014 , we bypassed the qualitative assessment for each of our reporting units 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 Pump Solutions reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 63 percent. In April 2014, we completed the acquisition of assets of the following four entities: National Pump & Compressor, Ltd., Canadian Pump and Compressor Ltd., GulfCo Industrial Equipment, LP and LD Services, LLC (collectively “National Pump”). All of the assets in the Pump Solutions reporting unit were acquired in the National Pump acquisition. The estimated fair value of our Pump Solutions reporting unit exceeded its carrying amount by 13 percent. As all of the assets in the Pump Solutions reporting unit were recorded at fair value as of the April 2014 acquisition date, we expected the percentage by which the Pump Solutions 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, 2015 , we bypassed the qualitative assessment for each of our reporting units 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 Pump Solutions reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 51 percent. In April 2014, we completed the acquisition of National Pump. Most of the assets in the Pump Solutions reporting unit were acquired in the National Pump acquisition. Based on the October 1, 2015 test, the Pump Solutions reporting unit’s estimated fair value exceeded its carrying amount by 3.3 percent. In light of continuing pressures on the Pump Solutions reporting unit related primarily to upstream oil and gas customers, we continued to monitor the Pump Solutions reporting unit for impairment through the end of 2015, and performed another impairment test as of November 30, 2015. As of the November 30, 2015 testing date, the estimated fair value of the Pump Solutions reporting unit exceeded its carrying amount by 1 percent. No additional impairment indicators were noted as of December 31, 2015. As of December 31, 2015, there was $311 of goodwill in the Pump Solutions reporting unit. Given the narrow margin by which the estimated fair value of the Pump Solutions reporting unit exceeded its carrying amount, we also performed a sensitivity analysis related to the discount rate and long-term growth rate used in the November 30, 2015 test. Specifically, we performed the sensitivity analysis by: (i) increasing the discount rate by 50 basis points and (ii) reducing the long-term growth rate by 25 basis points. The Pump Solutions reporting unit failed step one of the goodwill impairment test under the sensitivity test, and would have required step two testing to determine potential goodwill impairment. The November 30, 2015 impairment test assumed earnings growth for the Pump Solutions reporting unit over the next three years. Should this growth not occur, if the reporting unit otherwise fails to meet its current financial plans, or if there were changes to any other key assumption used in the test, the Pump Solutions reporting unit could fail step one of the goodwill impairment test in a future period. We will continue to monitor the Pump Solutions reporting unit for impairment. |
Restructuring Charges | 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 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 7 to 15 years. The trade names and associated trademarks are being amortized using the sum of the years' digits method over an initial period of 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 Canadian 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 Our rental contract periods are hourly , daily, weekly or monthly and we recognize revenues from renting equipment on a straight-line basis. 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 over the cumulative amount of revenue recognized to date. We record amounts billed to customers in excess of recognizable revenue as deferred revenue on our balance sheet. We had deferred revenue of $32 and $36 as of December 31, 2015 and 2014 , respectively. Equipment rentals include our revenues from renting equipment, as well as revenue related to the fees we charge customers: for equipment delivery and pick-up; to protect the customer against liability for damage to our equipment while on rent; and for fuel. Delivery and pick-up revenue is recognized when the service is performed. Customers have the option of purchasing a damage waiver when they rent our equipment to protect against potential loss or damage; we refer to the fee we charge for the waiver as Rental Protection Plan (or "RPP") revenue. RPP revenue is recognized ratably over the contract term. Fees related to the consumption of fuel by our customers are recognized when the equipment is returned by the customer (and consumption, if any, can be measured). Revenues from the sale of rental equipment and new equipment are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is reasonably assured. Sales of contractor supplies are also recognized at the time of delivery to, or pick-up by, the customer. Service revenue is recognized as the services are performed. Sales tax amounts collected from customers are recorded on a net basis. |
Delivery Expense | 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, yellow pages, the Internet, radio and direct mail. Advertising costs are generally expensed as incurred. |
Advertising Reimbursements | 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. |
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. The Company is also self-insured for group medical claims but purchases “stop loss” insurance to protect itself from 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. |
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, reserves for claims, loss contingencies (including legal contingencies) and the fair values of financial instruments. 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. Our largest customer accounted for less than one percent of total revenues in each of 2015 , 2014 , and 2013 . Our customer with the largest receivable balance represented approximately one percent of total receivables at December 31, 2015 and 2014 . 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, forfeiture rates 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 classify cash flows from tax benefits resulting from tax deductions in excess of the compensation cost recognized for stock-based awards (“excess tax benefits”) as financing cash flows. |
New Accounting Pronouncements | New Accounting Pronouncements Revenue from Contracts with Customers . In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to clarify the principles for recognizing revenue. This guidance includes the required steps to achieve the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has agreed to a one-year deferral of the original effective date of this guidance and as a result it will be effective for fiscal years and interim periods beginning after December 15, 2017. The FASB's update allows entities to apply the new guidance as of the original effective date (for fiscal years and interim periods beginning after December 15, 2016). We expect to adopt this guidance when effective, and the impact on our financial statements is not currently estimable. Inventory . In July 2015, the FASB issued guidance that requires an entity to measure inventory at the lower of cost or net realizable value. Current GAAP requires that an entity measure inventory at the lower of cost or market, and market under current GAAP could be replacement cost, net realizable value, or net realizable value less a normal profit margin. This guidance is effective for fiscal years and interim periods beginning after December 15, 2016, and requires prospective application. Early adoption is permitted. We expect to adopt this guidance when effective, and do not expect this guidance to have a significant impact on our financial statements. Business Combinations . In September 2015, the FASB issued guidance to simplify the accounting for adjustments made during the measurement period to provisional amounts recognized in a business combination. This guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition the acquirer is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance is effective for fiscal years and interim periods beginning after December 15, 2015, and requires prospective application. Early adoption is permitted. We expect to adopt this guidance when effective, and do not expect this guidance to have a significant impact on our financial statements. Guidance Adopted in the Fourth Quarter of 2015 Simplifying the Presentation of Debt Issuance Costs . In April 2015, the FASB issued guidance on the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. We early adopted this guidance retrospectively during the fourth quarter of 2015. As a result of adopting this guidance, total assets and total liabilities as of December 31, 2014 decreased as discussed below. Balance Sheet Classification of Deferred Taxes . In November 2015, the FASB issued guidance that requires that deferred tax liabilities and assets be classified as non-current in the balance sheet. We early adopted this guidance retrospectively during the fourth quarter of 2015. As a result of adopting this guidance, total assets and total liabilities as of December 31, 2014 decreased as discussed below. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Impact of New Guidance | The impact of adopting the above guidance as of December 31, 2014 was as follows: Deferred tax current assets Total current assets Other long-term assets Total assets Long-term debt Deferred tax long-term liabilities Total liabilities Total liabilities and stockholders' equity Previously reported $ 248 $ 1,546 $ 97 $ 12,467 $ 7,434 $ 1,692 $ 10,669 $ 12,467 Simplifying the Presentation of Debt Issuance Costs — — (90 ) (90 ) (90 ) — (90 ) (90 ) Balance Sheet Classification of Deferred Taxes (248 ) (248 ) — (248 ) — (248 ) (248 ) (248 ) Current presentation $ — $ 1,298 $ 7 $ 12,129 $ 7,344 $ 1,444 $ 10,331 $ 12,129 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Summary of fair value of consideration transferred | The acquisition date fair value of the consideration transferred consisted of the following: Cash consideration (1) $ 773 Contingent consideration (2) 76 Total purchase consideration (3) $ 849 (1) Includes a ‘hold back’ of $ 58 that was paid in April 2015. (2) Reflects the acquisition date fair value of the contingent consideration that was paid in June 2015 as discussed in note 11 to our consolidated financial statements. (3) Total purchase consideration excludes $ 15 of stock which was issued in connection with the acquisition and was treated as compensation for book purposes but primarily represents deductible goodwill for income tax purposes. |
Schedule of assets acquired and liabilities assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date: Accounts receivable, net of allowance for doubtful accounts (1) $ 44 Inventory 19 Deferred taxes 6 Rental equipment 172 Property and equipment 10 Intangibles (2) 289 Other assets 1 Total identifiable assets acquired 541 Current liabilities (25 ) Total liabilities assumed (25 ) Net identifiable assets acquired 516 Goodwill (3) 333 Net assets acquired $ 849 (1) The fair value of accounts receivables acquired was $ 44 , and the gross contractual amount was $ 47 . We estimated that $ 3 would be uncollectible. (2) The following table reflects the estimated fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair value Life (years) Customer relationships $ 274 10 Non-compete agreements 15 6 Total $ 289 (3) $ 321 of the goodwill was assigned to our trench, power and pump segment and $ 12 of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the merger is primarily reflective of National Pump's going-concern value, the value of National Pump's assembled workforce, new customer relationships expected to arise from the merger, and operational synergies that we expect to achieve that would not be available to other market participants. $ 325 of goodwill is expected to be deductible for income tax purposes. The amount of goodwill that is expected to be deductible for income tax purposes declined during the year ended December 31, 2015 due to a decline in the fair value of the contingent cash consideration component of the National Pump purchase price due to lower than expected financial performance compared to agreed upon financial targets, as discussed in note 11 to our consolidated financial statements. |
Schedule of finite-lived intangible assets acquired | The following table reflects the estimated fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair value Life (years) Customer relationships $ 274 10 Non-compete agreements 15 6 Total $ 289 |
Summary of pro forma information | The table below presents unaudited pro forma consolidated income statement information as if National Pump had been included in our consolidated results for the entire periods reflected: Year Ended December 31, 2014 2013 United Rentals historic revenues $ 5,685 $ 4,955 National Pump historic revenues 62 208 Pro forma revenues 5,747 5,163 United Rentals historic pretax income 850 605 National Pump historic pretax income 20 62 Combined pretax income 870 667 Pro forma adjustments to combined pretax income: Impact of fair value mark-ups/useful life changes on depreciation (1) (1 ) (4 ) Intangible asset amortization (2) (12 ) (52 ) Interest expense (3) 58 (95 ) Elimination of historic National Pump interest (4) — 2 Elimination of merger costs (5) 8 — Pro forma pretax income $ 923 $ 518 (1) Depreciation of rental equipment and non-rental depreciation were adjusted for the fair value mark-ups of equipment acquired in the National Pump acquisition. The useful lives assigned to such equipment didn’t change significantly from the lives historically used by National Pump. (2) The intangible assets acquired in the National Pump acquisition were amortized. (3) In connection with the National Pump acquisition, URNA issued $ 525 principal amount of 6 1 / 8 percent Senior Notes (as an add on to our existing 6 1 / 8 percent Senior Notes) and $ 850 principal amount of 5 3 / 4 percent Senior Notes, and all our outstanding 9 1 / 4 percent Senior Notes were redeemed. Interest expense was adjusted to reflect these changes in our debt portfolio. For the pro forma presentation, the $ 64 loss recognized upon redemption of the 9 1 / 4 percent Senior Notes was moved from the year ended December 31, 2014 to the year ended December 31, 2013. (4) Interest on National Pump historic debt was eliminated. (5) Merger related costs, primarily comprised of financial and legal advisory fees, associated with the National Pump acquisition were eliminated as they were assumed to have been recognized prior to the pro forma acquisition date. For the years ended December 31, 2015 and 2014, National Pump revenue and pretax (loss) income included in our consolidated financial statements were as follows: Year Ended December 31, 2015 2014 Revenue $ 225 $ 215 Pretax (loss) income (1) (6 ) 42 (1) Pretax (loss) income excludes merger related costs which are not allocated to our segments. Pretax loss for the year ended December 31, 2015 reflects volume and pricing pressure associated with upstream oil and gas customers, and the amortization of the intangible assets acquired in the National Pump acquisition. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , 2014 and 2013 : Year Ended December 31, 2015 2014 2013 Primarily rented by our general rentals segment: General construction and industrial equipment 43 % 43 % 44 % Aerial work platforms 32 % 33 % 36 % General tools and light equipment 10 % 10 % 9 % Primarily rented by our trench, power and pump segment: Power and HVAC equipment 6 % 6 % 6 % Trench safety equipment 5 % 5 % 5 % Pumps 4 % 3 % * * There was no material equipment rental revenue associated with pumps prior to the April 2014 acquisition of National Pump discussed in note 3 to our consolidated financial statements. |
Financial information by segment | The following table sets forth financial information by segment as of and for the years ended December 31, 2015 , 2014 and 2013 : General Trench, Total 2015 Equipment rentals $ 4,241 $ 708 $ 4,949 Sales of rental equipment 504 34 538 Sales of new equipment 137 20 157 Contractor supplies sales 67 12 79 Service and other revenues 83 11 94 Total revenue 5,032 785 5,817 Depreciation and amortization expense 1,071 173 1,244 Equipment rentals gross profit 1,819 328 2,147 Capital expenditures 1,439 197 1,636 Total assets $ 10,561 $ 1,522 $ 12,083 2014 Equipment rentals $ 4,222 $ 597 $ 4,819 Sales of rental equipment 519 25 544 Sales of new equipment 113 36 149 Contractor supplies sales 73 12 85 Service and other revenues 75 13 88 Total revenue 5,002 683 5,685 Depreciation and amortization expense 1,060 134 1,194 Equipment rentals gross profit 1,790 302 2,092 Capital expenditures 1,594 227 1,821 Total assets (1) $ 10,597 $ 1,532 $ 12,129 2013 Equipment rentals $ 3,869 $ 327 $ 4,196 Sales of rental equipment 474 16 490 Sales of new equipment 97 7 104 Contractor supplies sales 79 8 87 Service and other revenues 72 6 78 Total revenue 4,591 364 4,955 Depreciation and amortization expense 1,038 60 1,098 Equipment rentals gross profit 1,557 153 1,710 Capital expenditures 1,556 128 1,684 Total assets $ 10,322 $ 554 $ 10,876 (1) The increase in the trench safety, power and HVAC, and pump solutions assets in 2014 primarily reflects the impact of the National Pump acquisition discussed in note 3 to the consolidated financial statements. |
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, 2015 2014 2013 Total equipment rentals gross profit $ 2,147 $ 2,092 $ 1,710 Gross profit from other lines of business 333 340 277 Selling, general and administrative expenses (714 ) (758 ) (642 ) Merger related costs 26 (11 ) (9 ) Restructuring charge (6 ) 1 (12 ) Non-rental depreciation and amortization (268 ) (273 ) (246 ) Interest expense, net (567 ) (555 ) (475 ) Interest expense- subordinated convertible debentures — — (3 ) Other income, net 12 14 5 Income before provision for income taxes $ 963 $ 850 $ 605 |
Geographic area information | We operate in the United States and Canada. The following table presents geographic area information for the years ended December 31, 2015 , 2014 and 2013 , except for balance sheet information, which is presented as of December 31, 2015 and 2014 : Domestic Foreign (Canada) Total 2015 Equipment rentals $ 4,452 $ 497 $ 4,949 Sales of rental equipment 480 58 538 Sales of new equipment 137 20 157 Contractor supplies sales 69 10 79 Service and other revenues 80 14 94 Total revenue 5,218 599 5,817 Rental equipment, net 5,657 529 6,186 Property and equipment, net 399 46 445 Goodwill and other intangibles, net $ 3,838 $ 310 $ 4,148 2014 Equipment rentals $ 4,217 $ 602 $ 4,819 Sales of rental equipment 478 66 544 Sales of new equipment 124 25 149 Contractor supplies sales 70 15 85 Service and other revenues 73 15 88 Total revenue 4,962 723 5,685 Rental equipment, net 5,399 609 6,008 Property and equipment, net 395 43 438 Goodwill and other intangibles, net $ 4,014 $ 364 $ 4,378 2013 Equipment rentals $ 3,612 $ 584 $ 4,196 Sales of rental equipment 438 52 490 Sales of new equipment 82 22 104 Contractor supplies sales 70 17 87 Service and other revenues 62 16 78 Total revenue $ 4,264 $ 691 $ 4,955 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Closed Restructuring Programs | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of restructuring charges | The table below provides certain information concerning our restructuring charges under the closed restructuring programs: Description Beginning Charged to Payments Ending Year ended December 31, 2013: Branch closure charges $ 52 $ 10 $ (29 ) $ 33 Severance costs 9 2 (9 ) 2 Total $ 61 $ 12 $ (38 ) $ 35 Year ended December 31, 2014: Branch closure charges $ 33 $ (1 ) $ (12 ) $ 20 Severance costs 2 — (2 ) — Total $ 35 $ (1 ) $ (14 ) $ 20 Year ended December 31, 2015: Branch closure charges $ 20 $ 2 $ (9 ) $ 13 Severance costs — — — — Total $ 20 $ 2 $ (9 ) $ 13 _________________ (1) Reflected in our consolidated statements of income as “Restructuring charge.” The restructuring charges are not allocated to our segments. |
2015-2016 Cost Savings Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of restructuring charges | The table below provides certain information concerning our restructuring charges under the current restructuring program: Description Beginning Charged to Payments Ending Year ended December 31, 2015: Branch closure charges $ — $ — $ — $ — Severance costs — 4 (1 ) 3 Total $ — $ 4 $ (1 ) $ 3 _________________ (1) Reflected in our consolidated statements of income as “Restructuring charge.” The restructuring charges are not allocated to our segments. |
Rental Equipment (Tables)
Rental Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Rental Equipment | |
Property, Plant and Equipment [Line Items] | |
Schedule of rental equipment | Rental equipment consists of the following: December 31, 2015 2014 Rental equipment $ 9,022 $ 8,527 Less accumulated depreciation (2,836 ) (2,519 ) Rental equipment, net $ 6,186 $ 6,008 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment | |
Property, Plant and Equipment [Line Items] | |
Schedule of property and equipment | Property and equipment consist of the following: December 31, 2015 2014 Land $ 98 $ 97 Buildings 226 223 Non-rental vehicles 86 75 Machinery and equipment 78 68 Furniture and fixtures 171 152 Leasehold improvements 212 200 871 815 Less accumulated depreciation and amortization (426 ) (377 ) Property and equipment, net $ 445 $ 438 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 : General rentals Trench, Total Balance at January 1, 2013 (1) $ 2,828 $ 142 $ 2,970 Foreign currency translation and other adjustments (16 ) (1 ) (17 ) Balance at December 31, 2013 (1) 2,812 141 2,953 Goodwill related to acquisitions (2) 12 330 342 Foreign currency translation and other adjustments (20 ) (3 ) (23 ) Balance at December 31, 2014 (1) 2,804 468 3,272 Goodwill related to acquisitions (2) 16 — 16 Foreign currency translation and other adjustments (34 ) (11 ) (45 ) Balance at December 31, 2015 (1) $ 2,786 $ 457 $ 3,243 _________________ (1) The total carrying amount of goodwill for all periods in the table above is reflected net of $1,557 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. |
Components of intangible assets | Other intangible assets were comprised of the following at December 31, 2015 and 2014 : December 31, 2015 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 31 months $ 69 $ 44 $ 25 Customer relationships 11 years $ 1,453 $ 583 $ 870 Trade names and associated trademarks 16 months $ 80 $ 70 $ 10 December 31, 2014 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 40 months $ 70 $ 31 $ 39 Customer relationships 12 years $ 1,496 $ 451 $ 1,045 Trade names and associated trademarks 28 months $ 80 $ 58 $ 22 |
Estimated future amortization expense of intangible assets | As of December 31, 2015 , estimated amortization expense for other intangible assets for each of the next five years and thereafter was as follows: 2016 $ 173 2017 144 2018 124 2019 110 2020 94 Thereafter 260 Total $ 905 |
Accrued Expenses and Other Li37
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Summary of accrued expenses and other liabilities | Accrued expenses and other liabilities consist of the following: December 31, 2015 2014 Self-insurance accruals $ 43 $ 42 Accrued compensation and benefit costs 41 97 Property and income taxes payable 22 35 Restructuring reserves (1) 16 20 Interest payable 91 102 Deferred revenue (2) 38 39 National accounts accrual 39 38 Due to seller 4 129 Other (3) 61 73 Accrued expenses and other liabilities $ 355 $ 575 _________________ (1) Relates to branch closure charges and severance costs. See note 5 for additional detail. (2) Primarily relates to amounts billed to customers in excess of recognizable equipment rental revenue. See note 2 (“Revenue Recognition”) for additional detail. (3) Other includes multiple items, none of which are individually significant. |
Summary of other long-term liabilities | Other long-term liabilities consist of the following: December 31, 2015 2014 Self-insurance accruals $ 47 $ 50 Due to seller — 8 Accrued compensation and benefit costs 7 7 Other long-term liabilities $ 54 $ 65 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of derivatives on consolidated statements of income | The effect of our derivative instruments on our consolidated statements of income for the years ended December 31, 2015 , 2014 and 2013 was as follows: Location of income Amount of income (expense) Amount of income (expense) Year ended December 31, 2015: Derivatives designated as hedging instruments: Fixed price diesel swaps Other income (expense), net (1) $ * Cost of equipment rentals, excluding (7 ) (29 ) Derivatives not designated as hedging instruments: Foreign currency forward contracts Other income (expense), net (5 ) 5 Year ended December 31, 2014: Derivatives designated as hedging instruments: Fixed price diesel swaps Other income (expense), net (1) $ * Cost of equipment rentals, excluding * (40 ) Derivatives not designated as hedging instruments: Foreign currency forward contracts Other income (expense), net (7 ) 7 Year ended December 31, 2013: Derivatives designated as hedging instruments: Fixed price diesel swaps Other income (expense), net (1) $ * Cost of equipment rentals, excluding * (38 ) Derivatives not designated as hedging instruments: Foreign currency forward contracts Other income (expense), net (3 ) 3 * Amounts are insignificant (less than $1 ). (1) Represents the ineffective portion of the fixed price diesel swaps. (2) Amounts recognized on derivative represent the effective portion of the fixed price diesel swaps. (3) Amounts recognized on hedged item reflect the use of 10.6 million , 10.5 million and 9.7 million gallons of diesel covered by the fixed price swaps during the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of the fair value of financial instruments | The estimated fair values of our other financial instruments at December 31, 2015 and 2014 have been calculated based upon available market information or an appropriate valuation technique, and are as follows: December 31, 2015 December 31, 2014 Carrying Fair Carrying Fair Level 1: Senior and senior subordinated notes $ 5,916 $ 6,030 $ 5,984 $ 6,390 Level 2: 4 percent Convertible Senior Notes (1) — — 32 33 Level 3: Capital leases (2) 96 95 105 104 (1) The fair value of the 4 percent Convertible Senior Notes is based on the market value of comparable notes. Consistent with the carrying amount, the fair value excludes the equity component of the notes. The 4 percent Convertible Senior Notes matured in 2015. To exclude the equity component and calculate the fair value as of December 31, 2014 , we used an effective interest rate of 7.3 percent. (2) The fair value of capital leases reflects the present value of the leases using a 7.0 percent interest rate. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of debt instrument | Debt consists of the following: December 31, 2015 2014 URNA and subsidiaries debt: Accounts Receivable Securitization Facility (1) $ 571 $ 548 $2.5 billion ABL Facility (1) 1,579 1,293 5 3 / 4 percent Senior Secured Notes (2) — 741 8 3 / 8 percent Senior Subordinated Notes (2) — 740 7 3 / 8 percent Senior Notes 740 738 8 1 / 4 percent Senior Notes (2) 315 687 7 5 / 8 percent Senior Notes 1,306 1,303 6 1 / 8 percent Senior Notes 937 938 4 5 / 8 percent Senior Secured Notes (3) 989 — 5 3 / 4 percent Senior Notes 838 837 5 1 / 2 percent Senior Notes (3) 791 — Capital leases 96 105 Total URNA and subsidiaries debt 8,162 7,930 Holdings: 4 percent Convertible Senior Notes (4) — 32 Total debt (5) 8,162 7,962 Less short-term portion (607 ) (618 ) Total long-term debt $ 7,555 $ 7,344 (1) $873 and $48 were available under our ABL facility and accounts receivable securitization facility, respectively, at December 31, 2015 . The ABL facility availability is reflected net of $37 of letters of credit. At December 31, 2015 , the interest rates applicable to our ABL facility and accounts receivable securitization facility were 2.3 percent and 1.1 percent , respectively. (2) In 2015, we redeemed all of our 5 3 / 4 percent Senior Secured Notes and 8 3 / 8 percent Senior Subordinated Notes, and $ 350 principal amount of our 8 1 / 4 percent Senior Notes. Upon redemption, we recognized an aggregate loss of $ 121 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the redeemed notes. (3) In 2015, URNA issued $1.0 billion principal amount of 4 5 / 8 percent Senior Secured Notes and $ 800 principal amount of 5 1 / 2 percent Senior Notes. See below for additional detail. (4) The 4 percent Convertible Senior Notes matured in 2015. During the year ended December 31, 2015 , $ 34 principal amount of the 4 percent Convertible Senior Notes was redeemed. We recognized a loss of approximately $ 1 in interest expense, net upon redemption. The loss represented the difference between the net carrying amount and the fair value of the debt component of the notes. (5) In 2015, we adopted accounting guidance on the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. Total debt as of December 31, 2015 and 2014 is presented above in accordance with this new guidance. Under the new presentation, total debt as of December 31, 2014 as presented above decreased by $ 90 from the previously reported total debt. |
Schedule of the maturities of debt | Maturities of the Company’s debt (exclusive of any unamortized original issue discounts or premiums, and unamortized debt issuance costs) for each of the next five years and thereafter at December 31, 2015 are as follows: 2016 $ 607 2017 24 2018 17 2019 9 2020 2,343 Thereafter 5,206 Total $ 8,206 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of the components of the provision (benefit) for income taxes | The components of the provision for income taxes for each of the three years in the period ended December 31, 2015 are as follows: Year ended December 31, 2015 2014 2013 Current Federal $ 13 $ 2 $ 10 Foreign 15 42 39 State and local 14 5 2 42 49 51 Deferred Federal 300 240 149 Foreign 5 2 4 State and local 31 19 14 336 261 167 Total $ 378 $ 310 $ 218 |
Schedule of effective income tax rate reconciliation | A reconciliation of the provision for income taxes and the amount computed by applying the statutory federal income tax rate of 35 percent to the income before provision for income taxes for each of the three years in the period ended December 31, 2015 is as follows: Year ended December 31, 2015 2014 2013 Computed tax at statutory tax rate $ 337 $ 297 $ 212 State income taxes, net of federal tax benefit 41 22 15 Non-deductible expenses and other 8 8 8 Foreign taxes (8 ) (17 ) (17 ) Total $ 378 $ 310 $ 218 |
Schedule of deferred tax assets and liabilities | The components of deferred income tax assets (liabilities) are as follows: December 31, 2015 December 31, 2014 Reserves and allowances $ 112 $ 107 Intangibles — 1 Debt cancellation and other 48 58 Net operating loss and credit carryforwards 73 237 Total deferred tax assets 233 403 Property and equipment (1,714 ) (1,535 ) Intangibles (272 ) (312 ) Valuation allowance (12 ) — Total deferred tax liability (1,998 ) (1,847 ) Total deferred income tax liability (1) $ (1,765 ) $ (1,444 ) (1) In 2015, we adopted guidance that requires that deferred tax liabilities and assets be classified as non-current in the balance sheet. The total deferred income tax liability as of December 31, 2015 and 2014 is presented above in accordance with this new guidance. See note 2 to our consolidated financial statements for additional detail. |
Schedule of unrecognized tax benefits | The following table summarizes the activity related to unrecognized tax benefits, some of which would impact our effective tax rate if recognized: 2015 2014 Balance at January 1 $ 7 $ 7 Additions for tax positions of prior years 1 — Reductions for tax positions of prior years (1 ) — Settlements (4 ) — Balance at December 31 $ 3 $ 7 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases of lessee disclosure | Future minimum lease payments by year and in the aggregate, for non-cancelable operating leases with initial or remaining terms of one year or more are as follows at December 31, 2015 : Real Non-Rental 2016 $ 100 $ 38 2017 82 36 2018 63 29 2019 45 23 2020 26 23 Thereafter 44 — Total $ 360 $ 149 |
Schedule of capital leased assets | The following table presents capital lease financial statement information for the years ended December 31, 2015 , 2014 and 2013 , except for balance sheet information, which is presented as of December 31, 2015 and 2014 : 2015 2014 2013 Depreciation of rental equipment $ 20 $ 20 $ 22 Non-rental depreciation and amortization 3 4 5 Rental equipment 186 177 Less accumulated depreciation (56 ) (45 ) Rental equipment, net 130 132 Property and equipment, net: Non-rental vehicles 8 13 Buildings 21 20 Less accumulated depreciation and amortization (16 ) (15 ) Property and equipment, net $ 13 $ 18 |
Schedule of future minimum capital lease payments | Future minimum lease payments for capital leases for each of the next five years and thereafter at December 31, 2015 are as follows: 2016 $ 38 2017 27 2018 19 2019 10 2020 4 Thereafter 9 Total 107 Less amount representing interest (1) (11 ) Capital lease obligations $ 96 (1) The weighted average interest rate on our capital lease obligations as of December 31, 2015 was approximately 5.9 percent . |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity and Disclosure of Compensation Related Costs, Share-based Payments [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 January 1, 2013 1,288 $ 13.69 Granted 74 53.78 Exercised (484 ) 12.22 Canceled (3 ) 23.63 Outstanding at December 31, 2013 875 17.85 Granted — — Exercised (213 ) 11.21 Canceled (10 ) 19.98 Outstanding at December 31, 2014 652 19.99 Granted — — Exercised (87 ) 13.54 Canceled (4 ) 20.29 Outstanding at December 31, 2015 561 20.99 Exercisable at December 31, 2013 684 $ 11.67 Exercisable at December 31, 2014 564 $ 16.18 Exercisable at December 31, 2015 537 $ 19.49 |
Schedule of share authorized under stock option plan, by exercise price range | As of December 31, 2015 (options in thousands): Options Outstanding Options Exercisable Range of Exercise Prices Amount Weighted Weighted Amount Weighted $0.01-5.00 100 3.2 $ 3.38 100 $ 3.38 5.01-10.00 189 4.2 8.32 189 8.32 10.01-15.00 14 3.1 14.45 14 14.45 15.01-20.00 20 3.7 15.58 20 15.58 25.01-30.00 51 3.5 25.85 51 25.85 30.01-35.00 62 5.2 31.49 62 31.49 40.01-45.00 51 6.1 41.25 51 41.25 50.01-55.00 74 7.2 53.78 50 53.78 561 $ 20.99 537 $ 19.49 |
Summary of options outstanding | The following table presents information associated with options as of December 31, 2015 and 2014 , and for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Intrinsic value of options outstanding as of December 31 $ 29 $ 53 Intrinsic value of options exercisable as of December 31 28 48 Intrinsic value of options exercised 7 17 21 Weighted-average grant date fair value per option $ — $ — $ 24.56 |
Summary of restricted stock units activity | A summary of RSUs granted follows (RSUs in thousands): Year Ended December 31, 2015 2014 2013 RSUs granted 463 805 894 Weighted-average grant date price per unit $ 86.84 $ 92.28 $ 57.50 A summary of RSU activity for the year ended December 31, 2015 follows (RSUs in thousands): Stock Units Weighted-Average Nonvested as of December 31, 2014 702 $ 68.11 Granted 463 86.84 Vested (599 ) 68.75 Forfeited (36 ) 94.30 Nonvested as of December 31, 2015 530 $ 81.94 |
Quarterly Financial Informati44
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | First Second Third Fourth Full For the year ended December 31, 2015 (1): Total revenues $ 1,315 $ 1,429 $ 1,550 $ 1,523 $ 5,817 Gross profit 524 618 690 648 2,480 Operating income 300 375 446 397 1,518 Net income 115 86 215 169 585 Earnings per share—basic 1.19 0.89 2.28 1.82 6.14 Earnings per share—diluted (3) 1.16 0.88 2.25 1.81 6.07 For the year ended December 31, 2014 (2): Total revenues $ 1,178 $ 1,399 $ 1,544 $ 1,564 $ 5,685 Gross profit 448 589 688 707 2,432 Operating income 218 325 422 426 1,391 Net income 60 94 192 194 540 Earnings per share—basic 0.63 0.98 1.95 1.96 5.54 Earnings per share—diluted (3) 0.56 0.90 1.84 1.88 5.15 (1) The fourth quarter of 2015 includes a decrease in stock compensation, net of $14 as compared to the fourth quarter of 2014 primarily due to lower than expected revenue and profitability. Additionally, as discussed in note 5 to our consolidated financial statements, in the fourth quarter of 2015 , we initiated a restructuring program in response to recent challenges in our operating environment. Though we expect solid industry growth in 2016, the restructuring program was initiated in an effort to reduce costs in an environment with continuing pressures on volume and pricing. We expect to complete the restructuring program in 2016, and recognized $4 of costs for the program in the fourth quarter of 2015 . Additionally, during the fourth quarter of 2015, we reached agreement on a settlement that will provide us with a $5 refund on previously paid property taxes. We recognized a reduction of $5 in cost of equipment rentals, excluding depreciation, associated with the settlement during the fourth quarter of 2015. Additionally, our provision for income taxes for the fourth quarter of 2015 includes the impact of a $5 increase in valuation allowances resulting from the enactment of Connecticut state limitations on net operating loss utilization. (2) The fourth quarter of 2014 includes an increase in bad debt expense of $8 as compared to the fourth quarter of 2013 primarily due to improved receivable aging which reduced the expense in the fourth quarter of 2013. Additionally, the fourth quarter of 2014 includes an increase in stock compensation, net of $ 14 as compared to the fourth quarter of 2013 primarily due to improved profitability which resulted in increased performance based stock compensation. (3) Diluted earnings per share includes the after-tax impacts of the following: First Second Third Fourth Full For the year ended December 31, 2015: Merger related costs (4) $ 0.17 $ — $ — $ — $ 0.17 Merger related intangible asset amortization (5) (0.32 ) (0.27 ) (0.28 ) (0.28 ) (1.15 ) Impact on depreciation related to acquired RSC fleet and property and equipment (6) 0.01 — — — 0.02 Impact of the fair value mark-up of acquired RSC fleet (7) (0.04 ) (0.04 ) (0.04 ) (0.07 ) (0.19 ) Impact on interest expense related to fair value adjustment of acquired RSC indebtedness (8) 0.01 — — — 0.02 Restructuring charge (9) — — — (0.03 ) (0.04 ) Loss on extinguishment of debt securities and amendment of ABL facility (0.01 ) (0.76 ) — — (0.78 ) For the year ended December 31, 2014: Merger related costs (4) $ (0.01 ) $ (0.05 ) $ (0.02 ) $ 0.02 $ (0.06 ) Merger related intangible asset amortization (5) (0.22 ) (0.29 ) (0.29 ) (0.30 ) (1.10 ) Impact on depreciation related to acquired RSC fleet and property and equipment (6) — 0.01 0.01 0.01 0.03 Impact of the fair value mark-up of acquired RSC fleet (7) (0.05 ) (0.06 ) (0.05 ) (0.05 ) (0.21 ) Impact on interest expense related to fair value adjustment of acquired RSC indebtedness (8) 0.01 0.01 — 0.01 0.03 Restructuring charge (9) (0.01 ) 0.01 0.01 — 0.01 Loss on extinguishment of debt securities (0.06 ) (0.38 ) (0.02 ) — (0.46 ) (4) This primarily reflects transaction costs associated with the National Pump acquisition discussed above. The income during the year ended December 31, 2015 reflects a decline in the fair value of the contingent cash consideration component of the National Pump purchase price. For additional information concerning the National Pump acquisition, see note 3 to our consolidated financial statements. (5) This reflects the amortization of the intangible assets acquired in the RSC and National Pump acquisitions. (6) This reflects the impact of extending the useful lives of equipment acquired in the RSC acquisition, net of the impact of additional depreciation associated with the fair value mark-up of such equipment. (7) 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 acquisition and subsequently sold. (8) This reflects a reduction of interest expense associated with the fair value mark-up of debt acquired in the RSC acquisition. (9) As discussed in note 5 to our consolidated financial statements, this reflects severance costs and branch closure charges associated with our closed restructuring programs and our current restructuring program. |
Schedule of after tax impact on diluted earnings per share | Diluted earnings per share includes the after-tax impacts of the following: First Second Third Fourth Full For the year ended December 31, 2015: Merger related costs (4) $ 0.17 $ — $ — $ — $ 0.17 Merger related intangible asset amortization (5) (0.32 ) (0.27 ) (0.28 ) (0.28 ) (1.15 ) Impact on depreciation related to acquired RSC fleet and property and equipment (6) 0.01 — — — 0.02 Impact of the fair value mark-up of acquired RSC fleet (7) (0.04 ) (0.04 ) (0.04 ) (0.07 ) (0.19 ) Impact on interest expense related to fair value adjustment of acquired RSC indebtedness (8) 0.01 — — — 0.02 Restructuring charge (9) — — — (0.03 ) (0.04 ) Loss on extinguishment of debt securities and amendment of ABL facility (0.01 ) (0.76 ) — — (0.78 ) For the year ended December 31, 2014: Merger related costs (4) $ (0.01 ) $ (0.05 ) $ (0.02 ) $ 0.02 $ (0.06 ) Merger related intangible asset amortization (5) (0.22 ) (0.29 ) (0.29 ) (0.30 ) (1.10 ) Impact on depreciation related to acquired RSC fleet and property and equipment (6) — 0.01 0.01 0.01 0.03 Impact of the fair value mark-up of acquired RSC fleet (7) (0.05 ) (0.06 ) (0.05 ) (0.05 ) (0.21 ) Impact on interest expense related to fair value adjustment of acquired RSC indebtedness (8) 0.01 0.01 — 0.01 0.03 Restructuring charge (9) (0.01 ) 0.01 0.01 — 0.01 Loss on extinguishment of debt securities (0.06 ) (0.38 ) (0.02 ) — (0.46 ) (4) This primarily reflects transaction costs associated with the National Pump acquisition discussed above. The income during the year ended December 31, 2015 reflects a decline in the fair value of the contingent cash consideration component of the National Pump purchase price. For additional information concerning the National Pump acquisition, see note 3 to our consolidated financial statements. (5) This reflects the amortization of the intangible assets acquired in the RSC and National Pump acquisitions. (6) This reflects the impact of extending the useful lives of equipment acquired in the RSC acquisition, net of the impact of additional depreciation associated with the fair value mark-up of such equipment. (7) 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 acquisition and subsequently sold. (8) This reflects a reduction of interest expense associated with the fair value mark-up of debt acquired in the RSC acquisition. (9) As discussed in note 5 to our consolidated financial statements, this reflects severance costs and branch closure charges associated with our closed restructuring programs and our current restructuring program. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Numerator: Net income available to common stockholders $ 585 $ 540 $ 387 Denominator: Denominator for basic earnings per share—weighted-average common shares 95,170 97,489 93,436 Effect of dilutive securities: Employee stock options and warrants 300 394 504 4 percent Convertible Senior Notes 660 6,386 11,769 Restricted stock units 249 687 582 Denominator for diluted earnings per share—adjusted weighted-average common shares 96,379 104,956 106,291 Basic earnings per share $ 6.14 $ 5.54 $ 4.14 Diluted earnings per share $ 6.07 $ 5.15 $ 3.64 |
Condensed Consolidating Finan46
Condensed Consolidating Financial Information of Guarantor Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2015 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total ASSETS Cash and cash equivalents $ — $ 18 $ — $ 161 $ — $ — $ 179 Accounts receivable, net — 41 — 104 785 — 930 Intercompany receivable (payable) 144 40 (176 ) (109 ) — 101 — Inventory — 62 — 7 — — 69 Prepaid expenses and other assets — 98 — 18 — — 116 Total current assets 144 259 (176 ) 181 785 101 1,294 Rental equipment, net — 5,657 — 529 — — 6,186 Property and equipment, net 45 334 20 46 — — 445 Investments in subsidiaries 1,307 958 924 — — (3,189 ) — Goodwill — 3,000 — 243 — — 3,243 Other intangibles, net — 838 — 67 — — 905 Other long-term assets 3 7 — — — — 10 Total assets $ 1,499 $ 11,053 $ 768 $ 1,066 $ 785 $ (3,088 ) $ 12,083 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 1 $ 34 $ — $ — $ 572 $ — $ 607 Accounts payable — 237 — 34 — — 271 Accrued expenses and other liabilities — 314 14 27 — — 355 Total current liabilities 1 585 14 61 572 — 1,233 Long-term debt 4 7,430 110 11 — — 7,555 Deferred taxes 18 1,677 — 70 — — 1,765 Other long-term liabilities — 54 — — — — 54 Total liabilities 23 9,746 124 142 572 — 10,607 Temporary equity — — — — — — — Total stockholders’ equity (deficit) 1,476 1,307 644 924 213 (3,088 ) 1,476 Total liabilities and stockholders’ equity (deficit) $ 1,499 $ 11,053 $ 768 $ 1,066 $ 785 $ (3,088 ) $ 12,083 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2014 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total ASSETS Cash and cash equivalents $ — $ 8 $ — $ 150 $ — $ — $ 158 Accounts receivable, net — 37 — 144 759 — 940 Intercompany receivable (payable) 476 (428 ) (60 ) (109 ) — 121 — Inventory — 69 — 9 — — 78 Prepaid expenses and other assets — 113 1 8 — — 122 Total current assets 476 (201 ) (59 ) 202 759 121 1,298 Rental equipment, net — 5,399 — 609 — — 6,008 Property and equipment, net 43 331 21 43 — — 438 Investments in subsidiaries 1,330 1,185 1,040 — — (3,555 ) — Goodwill — 3,000 — 272 — — 3,272 Other intangibles, net — 1,014 — 92 — — 1,106 Other long-term assets — 7 — — — — 7 Total assets $ 1,849 $ 10,735 $ 1,002 $ 1,218 $ 759 $ (3,434 ) $ 12,129 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 32 $ 38 $ — $ — $ 548 $ — $ 618 Accounts payable — 248 — 37 — — 285 Accrued expenses and other liabilities — 499 19 57 — — 575 Total current liabilities 32 785 19 94 548 — 1,478 Long-term debt — 7,208 130 6 — — 7,344 Deferred taxes 19 1,348 — 77 — — 1,444 Other long-term liabilities — 64 — 1 — — 65 Total liabilities 51 9,405 149 178 548 — 10,331 Temporary equity 2 — — — — — 2 Total stockholders’ equity (deficit) 1,796 1,330 853 1,040 211 (3,434 ) 1,796 Total liabilities and stockholders’ equity (deficit) $ 1,849 $ 10,735 $ 1,002 $ 1,218 $ 759 $ (3,434 ) $ 12,129 |
Condensed Consolidating Statements of Income | CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2015 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Revenues: Equipment rentals $ — $ 4,452 $ — $ 497 $ — $ — $ 4,949 Sales of rental equipment — 480 — 58 — — 538 Sales of new equipment — 137 — 20 — — 157 Contractor supplies sales — 69 — 10 — — 79 Service and other revenues — 80 — 14 — — 94 Total revenues — 5,218 — 599 — — 5,817 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,603 — 223 — — 1,826 Depreciation of rental equipment — 881 — 95 — — 976 Cost of rental equipment sales — 279 — 32 — — 311 Cost of new equipment sales — 115 — 16 — — 131 Cost of contractor supplies sales — 48 — 7 — — 55 Cost of service and other revenues — 33 — 5 — — 38 Total cost of revenues — 2,959 — 378 — — 3,337 Gross profit — 2,259 — 221 — — 2,480 Selling, general and administrative expenses 5 596 1 79 33 — 714 Merger related costs — (26 ) — — — — (26 ) Restructuring charge — 5 — 1 — — 6 Non-rental depreciation and amortization 15 228 1 24 — — 268 Operating (loss) income (20 ) 1,456 (2 ) 117 (33 ) — 1,518 Interest (income) expense, net (3 ) 559 8 3 5 (5 ) 567 Other (income) expense, net (1) (471 ) 513 — 44 (98 ) — (12 ) Income (loss) before provision (benefit) for income taxes 454 384 (10 ) 70 60 5 963 Provision (benefit) for income taxes 201 141 (5 ) 18 23 — 378 Income (loss) before equity in net earnings (loss) of subsidiaries 253 243 (5 ) 52 37 5 585 Equity in net earnings (loss) of subsidiaries 332 89 52 — — (473 ) — Net income (loss) 585 332 47 52 37 (468 ) 585 Other comprehensive (loss) income (176 ) (176 ) (175 ) (139 ) — 490 (176 ) Comprehensive income (loss) $ 409 $ 156 $ (128 ) $ (87 ) $ 37 $ 22 $ 409 (1) Other (income) expense, net includes an adjustment to the amount of royalties Holdings receives from URNA and its subsidiaries as discussed above (see Item 7- Management’s Discussion and Analysis of Financial Condition and Results of Operations- Liquidity and Capital Resources- Relationship between Holdings and URNA). CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2014 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Revenues: Equipment rentals $ — $ 4,217 $ — $ 602 $ — $ — $ 4,819 Sales of rental equipment — 478 — 66 — — 544 Sales of new equipment — 124 — 25 — — 149 Contractor supplies sales — 70 — 15 — — 85 Service and other revenues — 73 — 15 — — 88 Total revenues — 4,962 — 723 — — 5,685 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,558 — 248 — — 1,806 Depreciation of rental equipment — 820 — 101 — — 921 Cost of rental equipment sales — 277 — 38 — — 315 Cost of new equipment sales — 101 — 19 — — 120 Cost of contractor supplies sales — 49 — 10 — — 59 Cost of service and other revenues — 27 — 5 — — 32 Total cost of revenues — 2,832 — 421 — — 3,253 Gross profit — 2,130 — 302 — — 2,432 Selling, general and administrative expenses 55 607 3 84 9 — 758 Merger related costs — 11 — — — — 11 Restructuring charge — (1 ) — — — — (1 ) Non-rental depreciation and amortization 17 226 1 29 — — 273 Operating (loss) income (72 ) 1,287 (4 ) 189 (9 ) — 1,391 Interest expense (income), net 9 538 5 4 5 (6 ) 555 Other (income) expense, net (149 ) 212 (3 ) 17 (91 ) — (14 ) Income (loss) before provision for income taxes 68 537 (6 ) 168 77 6 850 Provision for income taxes 1 236 — 43 30 — 310 Income (loss) before equity in net earnings (loss) of subsidiaries 67 301 (6 ) 125 47 6 540 Equity in net earnings (loss) of subsidiaries 473 172 125 — — (770 ) — Net income (loss) 540 473 119 125 47 (764 ) 540 Other comprehensive (loss) income (93 ) (93 ) (90 ) (72 ) — 255 (93 ) Comprehensive income (loss) $ 447 $ 380 $ 29 $ 53 $ 47 $ (509 ) $ 447 CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2013 Non-Guarantor Parent URNA Guarantor Foreign SPV (1) Eliminations Total Revenues: Equipment rentals $ — $ 3,612 $ — $ 584 $ — $ — $ 4,196 Sales of rental equipment — 438 — 52 — — 490 Sales of new equipment — 82 — 22 — — 104 Contractor supplies sales — 70 — 17 — — 87 Service and other revenues — 62 — 16 — — 78 Total revenues — 4,264 — 691 — — 4,955 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,391 — 243 — — 1,634 Depreciation of rental equipment — 752 — 100 — — 852 Cost of rental equipment sales — 283 — 31 — — 314 Cost of new equipment sales — 67 — 17 — — 84 Cost of contractor supplies sales — 48 — 11 — — 59 Cost of service and other revenues — 19 — 6 — — 25 Total cost of revenues — 2,560 — 408 — — 2,968 Gross profit — 1,704 — 283 — — 1,987 Selling, general and administrative expenses 8 541 — 88 5 — 642 Merger related costs — 9 — — — — 9 Restructuring charge — 12 — — — — 12 Non-rental depreciation and amortization 17 210 — 19 — — 246 Operating (loss) income (25 ) 932 — 176 (5 ) — 1,078 Interest expense (income), net 12 454 6 5 5 (7 ) 475 Interest expense-subordinated convertible debentures 3 — — — — — 3 Other (income) expense, net (132 ) 191 — 18 (82 ) — (5 ) Income (loss) before provision (benefit) for income taxes 92 287 (6 ) 153 72 7 605 Provision (benefit) for income taxes 38 113 (2 ) 41 28 — 218 Income (loss) before equity in net earnings (loss) of subsidiaries 54 174 (4 ) 112 44 7 387 Equity in net earnings (loss) of subsidiaries 333 159 112 — — (604 ) — Net income (loss) 387 333 108 112 44 (597 ) 387 Other comprehensive (loss) income (65 ) (65 ) (65 ) (50 ) — 180 (65 ) Comprehensive income (loss) $ 322 $ 268 $ 43 $ 62 $ 44 $ (417 ) $ 322 |
Condensed Consolidating Cash Flow Information | CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Year Ended December 31, 2015 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Net cash provided by (used in) operating activities $ 13 $ 1,804 $ (3 ) $ 170 $ 11 $ — $ 1,995 Net cash used in investing activities (13 ) (1,035 ) — (122 ) — — (1,170 ) Net cash (used in) provided by financing activities — (759 ) 3 (8 ) (11 ) — (775 ) Effect of foreign exchange rates — — — (29 ) — — (29 ) Net increase in cash and cash equivalents — 10 — 11 — — 21 Cash and cash equivalents at beginning of period — 8 — 150 — — 158 Cash and cash equivalents at end of period $ — $ 18 $ — $ 161 $ — $ — $ 179 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Year Ended December 31, 2014 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Net cash provided by (used in) operating activities $ 13 $ 1,644 $ 4 $ 223 $ (83 ) $ — $ 1,801 Net cash used in investing activities (13 ) (1,773 ) — (214 ) — — (2,000 ) Net cash provided by (used in) financing activities — 120 (4 ) (3 ) 83 — 196 Effect of foreign exchange rates — — — (14 ) — — (14 ) Net decrease in cash and cash equivalents — (9 ) — (8 ) — — (17 ) Cash and cash equivalents at beginning of period — 17 — 158 — — 175 Cash and cash equivalents at end of period $ — $ 8 $ — $ 150 $ — $ — $ 158 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Year Ended December 31, 2013 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Net cash provided by operating activities $ 26 $ 1,285 $ 4 $ 216 $ 20 $ — $ 1,551 Net cash used in investing activities (26 ) (1,018 ) — (133 ) — — (1,177 ) Net cash used in financing activities — (270 ) (4 ) (1 ) (20 ) — (295 ) Effect of foreign exchange rate — — — (10 ) — — (10 ) Net (decrease) increase in cash and cash equivalents — (3 ) — 72 — — 69 Cash and cash equivalents at beginning of period — 20 — 86 — — 106 Cash and cash equivalents at end of period $ — $ 17 $ — $ 158 $ — $ — $ 175 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Details) $ in Millions | Nov. 30, 2015 | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Oct. 01, 2015 | Oct. 01, 2014 | Apr. 30, 2014USD ($)entity | Dec. 31, 2012USD ($) |
Significant Accounting Policies [Line Items] | ||||||||
Cost of service and other revenues | $ 38 | $ 32 | $ 25 | |||||
Percentage of fair value in excess of carrying amount | 51.00% | 63.00% | ||||||
Goodwill | 3,243 | 3,272 | 2,953 | $ 2,970 | ||||
Deferred revenue | 32 | 36 | ||||||
Advertising expense | 0 | 0 | 0 | |||||
Advertising reimbursements | $ 17 | $ 16 | 15 | |||||
Accounts receivable | Customer concentration risk | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Concentration risk, percentage (less than 1% of total revenues) | 1.00% | 1.00% | ||||||
Trade names and trademarks | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite lived intangible assets life | 5 years | |||||||
Rental Equipment | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment additions | $ 30 | $ 39 | 44 | |||||
Cost of service and other revenues | $ 628 | $ 604 | $ 563 | |||||
Minimum | Customer relationships | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite lived intangible assets life | 7 years | |||||||
Minimum | Rental Equipment | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment useful life | 2 years | |||||||
Property, plant and equipment salvage value | 0.00% | |||||||
Minimum | Property and Equipment | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment useful life | 2 years | |||||||
Maximum | Non-compete agreements | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite lived intangible assets life | 5 years | |||||||
Maximum | Customer relationships | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite lived intangible assets life | 15 years | |||||||
Maximum | Rental Equipment | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment useful life | 12 years | |||||||
Property, plant and equipment salvage value | 10.00% | |||||||
Maximum | Property and Equipment | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment useful life | 39 years | |||||||
Largest customer | Maximum | Revenues | Customer concentration risk | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Concentration risk, percentage (less than 1% of total revenues) | 1.00% | 1.00% | 1.00% | |||||
National Pump | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Number of entities acquired as part of business acquisition | entity | 4 | |||||||
Goodwill | $ 333 | |||||||
Pump Solutions | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Percentage of fair value in excess of carrying amount | 1.00% | 3.30% | 13.00% | |||||
Goodwill | $ 311 | |||||||
Increase in discount rate | 0.50% | |||||||
Reduction in long-term growth rate | 0.25% | |||||||
Impairment test measurement period | 3 years |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Impact of New Guidance (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Total assets | $ 12,083 | $ 12,129 | $ 10,876 |
Total liabilities | 10,607 | 10,331 | |
Total liabilities and stockholders’ equity | $ 12,083 | 12,129 | |
Previously reported | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Total assets | 12,467 | ||
Total liabilities | 10,669 | ||
Total liabilities and stockholders’ equity | 12,467 | ||
Deferred tax current assets | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Total assets | 0 | ||
Deferred tax current assets | Previously reported | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Total assets | 248 | ||
Deferred tax current assets | New Accounting Pronouncement, early adoption effect | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Deferred taxes, assets | (248) | ||
Total current assets | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Total assets | 1,298 | ||
Total current assets | Previously reported | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Total assets | 1,546 | ||
Total current assets | New Accounting Pronouncement, early adoption effect | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Deferred taxes, assets | (248) | ||
Other long-term assets | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Total assets | 7 | ||
Other long-term assets | Previously reported | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Total assets | 97 | ||
Other long-term assets | New Accounting Pronouncement, early adoption effect | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Simplifying the Presentation of Debt Issuance Costs | (90) | ||
Assets | New Accounting Pronouncement, early adoption effect | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Simplifying the Presentation of Debt Issuance Costs | (90) | ||
Deferred taxes, assets | (248) | ||
Long-term debt | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Total liabilities | 7,344 | ||
Long-term debt | Previously reported | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Total liabilities | 7,434 | ||
Long-term debt | New Accounting Pronouncement, early adoption effect | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Simplifying the Presentation of Debt Issuance Costs | 90 | ||
Deferred tax long-term liabilities | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Total liabilities | 1,444 | ||
Deferred tax long-term liabilities | Previously reported | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Total liabilities | 1,692 | ||
Deferred tax long-term liabilities | New Accounting Pronouncement, early adoption effect | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Deferred taxes, liabilities | (248) | ||
Liabilities | New Accounting Pronouncement, early adoption effect | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Simplifying the Presentation of Debt Issuance Costs | 90 | ||
Deferred taxes, liabilities | (248) | ||
Liabilities and stockholders' equity | New Accounting Pronouncement, early adoption effect | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Simplifying the Presentation of Debt Issuance Costs | 90 | ||
Deferred taxes, liabilities | $ (248) |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015USD ($)location | May. 31, 2014USD ($)location | Apr. 30, 2014USD ($)location | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Business Acquisition [Line Items] | ||||||
Merger related costs | $ (26) | $ 11 | $ 9 | |||
National Pump | ||||||
Business Acquisition [Line Items] | ||||||
Number of branch locations | location | 35 | |||||
Revenue reported by acquired entity for last annual period | $ 210 | |||||
Blue Stream | ||||||
Business Acquisition [Line Items] | ||||||
Number of branch locations | location | 4 | |||||
Revenue reported by acquired entity for last annual period | $ 20 | |||||
DDR Propane and Equipment Rental | ||||||
Business Acquisition [Line Items] | ||||||
Number of branch locations | location | 2 | |||||
Revenue reported by acquired entity for last annual period | $ 20 | |||||
Merger related costs | National Pump | ||||||
Business Acquisition [Line Items] | ||||||
Merger related costs | (26) | $ 10 | ||||
Other noncurrent assets | National Pump | ||||||
Business Acquisition [Line Items] | ||||||
Capitalized debt issuance costs | $ 22 | |||||
Canada | National Pump | ||||||
Business Acquisition [Line Items] | ||||||
Number of branch locations | location | 4 |
Acquisitions (Consideration Tra
Acquisitions (Consideration Transferred) (Details) - National Pump - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Business Acquisition [Line Items] | ||
Cash consideration | $ 773 | |
Contingent consideration | 76 | |
Total purchase consideration | 849 | |
Cash consideration, hold back amount | $ 58 | |
Stock issued, excluded from purchase consideration | $ 15 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 3,243 | $ 3,272 | $ 2,953 | $ 2,970 | |
National Pump | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable, net of allowance for doubtful accounts | $ 44 | ||||
Inventory | 19 | ||||
Deferred taxes | 6 | ||||
Intangibles | 289 | ||||
Other assets | 1 | ||||
Total identifiable assets acquired | 541 | ||||
Current liabilities | (25) | ||||
Total liabilities assumed | (25) | ||||
Net identifiable assets acquired | 516 | ||||
Goodwill | 333 | ||||
Net assets acquired | 849 | ||||
Accounts receivable, gross | 47 | ||||
Accounts receivable, allowance for doubtful accounts | 3 | ||||
Rental Equipment | National Pump | |||||
Business Acquisition [Line Items] | |||||
Rental equipment and Property and equipment | 172 | ||||
Property and Equipment | National Pump | |||||
Business Acquisition [Line Items] | |||||
Rental equipment and Property and equipment | $ 10 |
Acquisitions (Intangibles) (Det
Acquisitions (Intangibles) (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
Apr. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 3,243 | $ 3,272 | $ 2,953 | $ 2,970 | |
National Pump | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair value | $ 289 | ||||
Goodwill | 333 | ||||
Goodwill expected to be deductible for tax purposes | 325 | ||||
National Pump | Customer relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair value | $ 274 | ||||
Life (years) | 10 years | ||||
National Pump | Non-compete agreements | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair value | $ 15 | ||||
Life (years) | 6 years | ||||
Trench, power and pump | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | 457 | 468 | 141 | 142 | |
Trench, power and pump | National Pump | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 321 | ||||
General rentals | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 2,786 | $ 2,804 | $ 2,812 | $ 2,828 | |
General rentals | National Pump | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 12 |
Acquisitions (Pro Forma) (Detai
Acquisitions (Pro Forma) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2014 | |
Business Acquisition [Line Items] | ||||||||||||
Revenues | $ 1,523,000,000 | $ 1,550,000,000 | $ 1,429,000,000 | $ 1,315,000,000 | $ 1,564,000,000 | $ 1,544,000,000 | $ 1,399,000,000 | $ 1,178,000,000 | $ 5,817,000,000 | $ 5,685,000,000 | $ 4,955,000,000 | |
Pro forma revenues | 5,747,000,000 | 5,163,000,000 | ||||||||||
Historic pretax income | 963,000,000 | 850,000,000 | 605,000,000 | |||||||||
Pro forma pretax income (loss), before adjustments | 870,000,000 | 667,000,000 | ||||||||||
Pro forma pretax income (loss) | 923,000,000 | 518,000,000 | ||||||||||
Gains (losses) on extinguishment of debt | $ (123,000,000) | (80,000,000) | (1,000,000) | |||||||||
National Pump | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Revenues | 62,000,000 | 208,000,000 | ||||||||||
Historic pretax income | 20,000,000 | 62,000,000 | ||||||||||
Impact of fair value mark-ups/useful life changes on depreciation | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Pro forma adjustments to pretax income | (1,000,000) | (4,000,000) | ||||||||||
Intangible asset amortization | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Pro forma adjustments to pretax income | (12,000,000) | (52,000,000) | ||||||||||
Interest expense | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Pro forma adjustments to pretax income | 58,000,000 | (95,000,000) | ||||||||||
Elimination of historic National Pump interest | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Pro forma adjustments to pretax income | 0 | 2,000,000 | ||||||||||
Elimination of merger costs | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Pro forma adjustments to pretax income | $ 8,000,000 | $ 0 | ||||||||||
Add-on to Senior Notes 6 1/8 percent | Senior notes | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Debt instrument, face amount | 525,000,000 | $ 525,000,000 | ||||||||||
Add-on to Senior Notes 6 1/8 percent | Senior notes | National Pump | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Stated interest rate | 6.125% | |||||||||||
5 3/4 percent Senior Notes | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% | ||||||||
5 3/4 percent Senior Notes | Senior notes | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Debt instrument, face amount | $ 850,000,000 | $ 850,000,000 | ||||||||||
5 3/4 percent Senior Notes | Senior notes | National Pump | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Stated interest rate | 5.75% | |||||||||||
Senior Notes 9.25 Percent | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Gains (losses) on extinguishment of debt | $ (64,000,000) | |||||||||||
Senior Notes 9.25 Percent | Senior notes | National Pump | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Stated interest rate | 9.25% |
Acquisitions (Revenue and Preta
Acquisitions (Revenue and Pretax Income of Acquiree) (Details) - National Pump - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||
Revenue | $ 225 | $ 215 |
Pretax (loss) income | $ (6) | $ 42 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015reportable_segmentRegion | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | reportable_segment | 2 |
Operating segments | General rentals | |
Segment Reporting Information [Line Items] | |
Number of geographic regions entity operates in (in locations) | Region | 9 |
Segment Information (Percentage
Segment Information (Percentage of Equipment Rental Revenue by Equipment Type) (Details) - Equipment rental revenue - Product concentration risk - Operating segments | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 32.00% | 33.00% | 36.00% |
General tools and light equipment | General rentals | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 10.00% | 10.00% | 9.00% |
Power and HVAC equipment | Trench, power and pump | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 6.00% | 6.00% | 6.00% |
Trench safety equipment | Trench, power and pump | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 5.00% | 5.00% | 5.00% |
Pumps | Trench, power and pump | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 4.00% | 3.00% |
Segment Information (Financial
Segment Information (Financial information by segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Equipment rentals | $ 4,949 | $ 4,819 | $ 4,196 | ||||||||
Sales of rental equipment | 538 | 544 | 490 | ||||||||
Sales of new equipment | 157 | 149 | 104 | ||||||||
Contractor supplies sales | 79 | 85 | 87 | ||||||||
Service and other revenues | 94 | 88 | 78 | ||||||||
Total revenues | $ 1,523 | $ 1,550 | $ 1,429 | $ 1,315 | $ 1,564 | $ 1,544 | $ 1,399 | $ 1,178 | 5,817 | 5,685 | 4,955 |
Depreciation and amortization expense | 1,244 | 1,194 | 1,098 | ||||||||
Gross profit | 648 | $ 690 | $ 618 | $ 524 | 707 | $ 688 | $ 589 | $ 448 | 2,480 | 2,432 | 1,987 |
Capital expenditures | 1,636 | 1,821 | 1,684 | ||||||||
Total assets | 12,083 | 12,129 | 12,083 | 12,129 | 10,876 | ||||||
Operating segments | General rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equipment rentals | 4,241 | 4,222 | 3,869 | ||||||||
Sales of rental equipment | 504 | 519 | 474 | ||||||||
Sales of new equipment | 137 | 113 | 97 | ||||||||
Contractor supplies sales | 67 | 73 | 79 | ||||||||
Service and other revenues | 83 | 75 | 72 | ||||||||
Total revenues | 5,032 | 5,002 | 4,591 | ||||||||
Depreciation and amortization expense | 1,071 | 1,060 | 1,038 | ||||||||
Capital expenditures | 1,439 | 1,594 | 1,556 | ||||||||
Total assets | 10,561 | 10,597 | 10,561 | 10,597 | 10,322 | ||||||
Operating segments | Trench, power and pump | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equipment rentals | 708 | 597 | 327 | ||||||||
Sales of rental equipment | 34 | 25 | 16 | ||||||||
Sales of new equipment | 20 | 36 | 7 | ||||||||
Contractor supplies sales | 12 | 12 | 8 | ||||||||
Service and other revenues | 11 | 13 | 6 | ||||||||
Total revenues | 785 | 683 | 364 | ||||||||
Depreciation and amortization expense | 173 | 134 | 60 | ||||||||
Capital expenditures | 197 | 227 | 128 | ||||||||
Total assets | $ 1,522 | $ 1,532 | 1,522 | 1,532 | 554 | ||||||
Equipment rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | 2,147 | 2,092 | 1,710 | ||||||||
Equipment rentals | Operating segments | General rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | 1,819 | 1,790 | 1,557 | ||||||||
Equipment rentals | Operating segments | Trench, power and pump | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | $ 328 | $ 302 | $ 153 |
Segment Information (Reconcilia
Segment Information (Reconciliation to consolidated totals) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total equipment rentals gross profit | $ 648 | $ 690 | $ 618 | $ 524 | $ 707 | $ 688 | $ 589 | $ 448 | $ 2,480 | $ 2,432 | $ 1,987 |
Selling, general and administrative expenses | (714) | (758) | (642) | ||||||||
Merger related costs | 26 | (11) | (9) | ||||||||
Restructuring charge | (6) | 1 | (12) | ||||||||
Non-rental depreciation and amortization | (268) | (273) | (246) | ||||||||
Interest expense, net | (567) | (555) | (475) | ||||||||
Interest expense- subordinated convertible debentures | 0 | 0 | (3) | ||||||||
Other income, net | 12 | 14 | 5 | ||||||||
Income before provision for income taxes | 963 | 850 | 605 | ||||||||
Equipment rentals | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total equipment rentals gross profit | 2,147 | 2,092 | 1,710 | ||||||||
Other products and services | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total equipment rentals gross profit | $ 333 | $ 340 | $ 277 |
Segment Information (Geographic
Segment Information (Geographic area information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment rentals | $ 4,949 | $ 4,819 | $ 4,196 | ||||||||
Sales of rental equipment | 538 | 544 | 490 | ||||||||
Sales of new equipment | 157 | 149 | 104 | ||||||||
Contractor supplies sales | 79 | 85 | 87 | ||||||||
Service and other revenues | 94 | 88 | 78 | ||||||||
Total revenues | $ 1,523 | $ 1,550 | $ 1,429 | $ 1,315 | $ 1,564 | $ 1,544 | $ 1,399 | $ 1,178 | 5,817 | 5,685 | 4,955 |
Goodwill and other intangibles, net | 4,148 | 4,378 | 4,148 | 4,378 | |||||||
Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment rentals | 4,452 | 4,217 | 3,612 | ||||||||
Sales of rental equipment | 480 | 478 | 438 | ||||||||
Sales of new equipment | 137 | 124 | 82 | ||||||||
Contractor supplies sales | 69 | 70 | 70 | ||||||||
Service and other revenues | 80 | 73 | 62 | ||||||||
Total revenues | 5,218 | 4,962 | 4,264 | ||||||||
Goodwill and other intangibles, net | 3,838 | 4,014 | 3,838 | 4,014 | |||||||
Foreign (Canada) | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Equipment rentals | 497 | 602 | 584 | ||||||||
Sales of rental equipment | 58 | 66 | 52 | ||||||||
Sales of new equipment | 20 | 25 | 22 | ||||||||
Contractor supplies sales | 10 | 15 | 17 | ||||||||
Service and other revenues | 14 | 15 | 16 | ||||||||
Total revenues | 599 | 723 | $ 691 | ||||||||
Goodwill and other intangibles, net | 310 | 364 | 310 | 364 | |||||||
Rental equipment, net | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, plant and equipment, net | 6,186 | 6,008 | 6,186 | 6,008 | |||||||
Rental equipment, net | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, plant and equipment, net | 5,657 | 5,399 | 5,657 | 5,399 | |||||||
Rental equipment, net | Foreign (Canada) | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, plant and equipment, net | 529 | 609 | 529 | 609 | |||||||
Property and equipment, net | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, plant and equipment, net | 445 | 438 | 445 | 438 | |||||||
Property and equipment, net | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, plant and equipment, net | 399 | 395 | 399 | 395 | |||||||
Property and equipment, net | Foreign (Canada) | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, plant and equipment, net | $ 46 | $ 43 | $ 46 | $ 43 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($)restructuring_program | Dec. 31, 2015USD ($)restructuring_program | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge | $ 6 | $ (1) | $ 12 | |
Closed Restructuring Programs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of restructuring programs | restructuring_program | 2 | 2 | ||
Restructuring charges incurred to date | $ 216 | $ 216 | ||
Restructuring charge | 2 | (1) | 12 | |
Closed Restructuring Programs | Branch closure charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges incurred to date | 150 | 150 | ||
Restructuring charge | 2 | (1) | 10 | |
Closed Restructuring Programs | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges incurred to date | 66 | 66 | ||
Restructuring charge | 0 | $ 0 | $ 2 | |
2015-2016 Cost Savings Restructuring Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge | $ 4 | 4 | ||
2015-2016 Cost Savings Restructuring Program | Branch closure charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge | 0 | |||
2015-2016 Cost Savings Restructuring Program | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge | $ 4 |
Restructuring Charges (Schedule
Restructuring Charges (Schedule Of Restructuring Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Reserve Balance | $ 20 | |||
Charged to Costs and Expenses | 6 | $ (1) | $ 12 | |
Ending Reserve Balance | $ 16 | 16 | 20 | |
Closed Restructuring Programs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Reserve Balance | 20 | 35 | 61 | |
Charged to Costs and Expenses | 2 | (1) | 12 | |
Payments and Other | (9) | (14) | (38) | |
Ending Reserve Balance | 13 | 13 | 20 | 35 |
Closed Restructuring Programs | Branch closure charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Reserve Balance | 20 | 33 | 52 | |
Charged to Costs and Expenses | 2 | (1) | 10 | |
Payments and Other | (9) | (12) | (29) | |
Ending Reserve Balance | 13 | 13 | 20 | 33 |
Closed Restructuring Programs | Severance costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Reserve Balance | 0 | 2 | 9 | |
Charged to Costs and Expenses | 0 | 0 | 2 | |
Payments and Other | 0 | (2) | (9) | |
Ending Reserve Balance | 0 | 0 | 0 | $ 2 |
2015-2016 Cost Savings Restructuring Program | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Reserve Balance | 0 | |||
Charged to Costs and Expenses | 4 | 4 | ||
Payments and Other | (1) | |||
Ending Reserve Balance | 3 | 3 | 0 | |
2015-2016 Cost Savings Restructuring Program | Branch closure charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Reserve Balance | 0 | |||
Charged to Costs and Expenses | 0 | |||
Payments and Other | 0 | |||
Ending Reserve Balance | 0 | 0 | 0 | |
2015-2016 Cost Savings Restructuring Program | Severance costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Reserve Balance | 0 | |||
Charged to Costs and Expenses | 4 | |||
Payments and Other | (1) | |||
Ending Reserve Balance | $ 3 | $ 3 | $ 0 |
Rental Equipment (Details)
Rental Equipment (Details) - Rental equipment, net - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,022 | $ 8,527 |
Less accumulated depreciation | (2,836) | (2,519) |
Property, Plant and Equipment, Total | $ 6,186 | $ 6,008 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 871 | $ 815 |
Less accumulated depreciation and amortization | (426) | (377) |
Property, Plant and Equipment, Total | 445 | 438 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 98 | 97 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 226 | 223 |
Non-rental vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 86 | 75 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 78 | 68 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 171 | 152 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 212 | $ 200 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Roll Forward] | |||
Balance at beginning of period | $ 3,272 | $ 2,953 | $ 2,970 |
Goodwill related to acquisitions | 16 | 342 | |
Foreign currency translation and other adjustments | (45) | (23) | (17) |
Balance at end of period | 3,243 | 3,272 | 2,953 |
General rentals | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | 2,804 | 2,812 | 2,828 |
Goodwill related to acquisitions | 16 | 12 | |
Foreign currency translation and other adjustments | (34) | (20) | (16) |
Balance at end of period | 2,786 | 2,804 | 2,812 |
Goodwill accumulated impairment loss | 1,557 | ||
Trench, power and pump | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | 468 | 141 | 142 |
Goodwill related to acquisitions | 0 | 330 | |
Foreign currency translation and other adjustments | (11) | (3) | (1) |
Balance at end of period | $ 457 | $ 468 | $ 141 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net Amount | $ 905 | $ 1,106 | |
Amortization expense | 193 | 204 | $ 178 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,016 | 173 | ||
2,017 | 144 | ||
2,018 | 124 | ||
2,019 | 110 | ||
2,020 | 94 | ||
Thereafter | 260 | ||
Net Amount | $ 905 | $ 1,106 | |
Non-compete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Amortization Period | 31 months | 40 months | |
Gross Carrying Amount | $ 69 | $ 70 | |
Accumulated Amortization | 44 | 31 | |
Net Amount | 25 | 39 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net Amount | $ 25 | $ 39 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Amortization Period | 11 years | 12 years | |
Gross Carrying Amount | $ 1,453 | $ 1,496 | |
Accumulated Amortization | 583 | 451 | |
Net Amount | 870 | 1,045 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net Amount | $ 870 | $ 1,045 | |
Trade names and associated trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Amortization Period | 16 months | 28 months | |
Gross Carrying Amount | $ 80 | $ 80 | |
Accumulated Amortization | 70 | 58 | |
Net Amount | 10 | 22 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net Amount | $ 10 | $ 22 |
Accrued Expenses and Other Li66
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued expenses and other liabilities | ||
Self-insurance accruals | $ 43 | $ 42 |
Accrued compensation and benefit costs | 41 | 97 |
Property and income taxes payable | 22 | 35 |
Restructuring reserves | 16 | 20 |
Interest payable | 91 | 102 |
Deferred revenue | 38 | 39 |
National accounts accrual | 39 | 38 |
Due to seller | 4 | 129 |
Other | 61 | 73 |
Accrued expenses and other liabilities | 355 | 575 |
Other long-term liabilities | ||
Self-insurance accruals | 47 | 50 |
Due to seller | 0 | 8 |
Accrued compensation and benefit costs | 7 | 7 |
Other long-term liabilities | $ 54 | $ 65 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) gal in Millions, CAD in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)gal | Dec. 31, 2015CADgal | Dec. 31, 2014USD ($)gal | Dec. 31, 2013USD ($)gal | |
Swap | ||||
Derivative [Line Items] | ||||
Hedging activities net cash flow impact | $ | $ 35 | $ 41 | $ 38 | |
Derivative purchases of underlying commodity (in gallons) | 10.6 | 10.6 | 10.5 | 9.7 |
Foreign contracts | ||||
Derivative [Line Items] | ||||
Derivative purchases of underlying currency (in Canadian Dollars) | CAD | CAD 221 | |||
Diesel swap | Swap | ||||
Derivative [Line Items] | ||||
Derivative, nonmonetary notional amount (in gallons) | 10.3 | 10.3 |
Derivatives (Effect of derivati
Derivatives (Effect of derivatives on consolidated statements of income) (Details) gal in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)gal | Dec. 31, 2014USD ($)gal | Dec. 31, 2013USD ($)gal | |
Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative purchases of underlying commodity (in gallons) | gal | 10.6 | 10.5 | 9.7 |
Swap | Designated as hedging instrument | Cost of equipment rentals, excluding depreciation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of income (expense) recognized on derivative | $ (7) | ||
Amount of income (expense) recognized on hedged item | (29) | $ (40) | $ (38) |
Foreign currency forward | Not designated as hedging instrument | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of income (expense) recognized on derivative | (5) | (7) | (3) |
Amount of income (expense) recognized on hedged item | $ 5 | $ 7 | $ 3 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) gal in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / galgal | Dec. 31, 2014USD ($) | |
Level 3 | National Pump | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Contingent consideration | $ | $ 0 | $ 78 |
Merger related costs | ||
Derivatives, Fair Value [Line Items] | ||
Change in contingent consideration | $ | $ (26) | |
Diesel swap | Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, nonmonetary notional amount (in gallons) | gal | 10.3 | |
Derivative, notional amount (in dollars per gallon) | $ / gal | 2.93 | |
Average forward price (in dollars per gallon) | $ / gal | 2.35 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Level 1 | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior and senior subordinated notes | $ 5,916 | $ 5,984 | |
Level 1 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior and senior subordinated notes | 6,030 | 6,390 | |
Level 2 | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
4 percent Convertible Senior Notes | 0 | 32 | |
Level 2 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
4 percent Convertible Senior Notes | 0 | 33 | |
Level 3 | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital leases | 96 | 105 | |
Level 3 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital leases | $ 95 | $ 104 | |
4 percent Convertible Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 4.00% | 4.00% | 4.00% |
Effective interest rate | 7.30% | ||
Capital leases | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Effective interest rate | 7.00% | ||
Convertible debt | 4 percent Convertible Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 4.00% | 4.00% | 4.00% |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) | 12 Months Ended | ||||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Mar. 31, 2015 | Apr. 30, 2014 | Mar. 31, 2014 | Oct. 31, 2012 | Mar. 31, 2012 | |
Debt Instrument [Line Items] | |||||||||
Total debt | $ 8,162,000,000 | $ 7,962,000,000 | |||||||
Less short-term portion | (607,000,000) | (618,000,000) | |||||||
Long-term debt | 7,555,000,000 | 7,344,000,000 | |||||||
Gains (losses) on extinguishment of debt | (123,000,000) | $ (80,000,000) | $ (1,000,000) | ||||||
Accounts Receivable Securitization Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused borrowing capacity amount | $ 48,000,000 | ||||||||
Interest rate at period end | 1.10% | ||||||||
$2.5 billion ABL Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused borrowing capacity amount | $ 873,000,000 | ||||||||
Letters of credit outstanding | $ 37,000,000 | ||||||||
Interest rate at period end | 2.30% | ||||||||
5 3/4 percent Senior Secured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 5.75% | 5.75% | |||||||
8 3/8 percent Senior Subordinated Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 8.375% | 8.375% | |||||||
8 1/4 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 8.25% | 8.25% | |||||||
Debt redeemed | $ 350,000,000 | ||||||||
7 3/8 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 7.375% | 7.375% | |||||||
7 5/8 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 7.625% | 7.625% | |||||||
6 1/8 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 6.125% | 6.125% | |||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||
4 5/8 percent Senior Secured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 4.625% | 4.625% | |||||||
5 3/4 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 5.75% | 5.75% | |||||||
5 1/2 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 5.50% | 5.50% | |||||||
4 percent Convertible Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 4.00% | 4.00% | 4.00% | ||||||
URNA and subsidiaries | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 8,162,000,000 | $ 7,930,000,000 | |||||||
URNA and subsidiaries | $2.5 billion ABL Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 2,500,000,000 | 2,500,000,000 | |||||||
URNA and subsidiaries | Capital leases | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 96,000,000 | 105,000,000 | |||||||
Credit facility | URNA and subsidiaries | $2.5 billion ABL Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 1,579,000,000 | 1,293,000,000 | |||||||
Senior secured notes | 4 5/8 percent Senior Secured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 1,000,000,000 | ||||||||
Debt instrument, face amount | 1,000,000,000 | ||||||||
Senior secured notes | URNA and subsidiaries | 5 3/4 percent Senior Secured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 0 | 741,000,000 | |||||||
Senior secured notes | URNA and subsidiaries | 4 5/8 percent Senior Secured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 989,000,000 | 0 | |||||||
Senior notes | 7 3/8 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||
Senior notes | 7 5/8 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 1,325,000,000 | ||||||||
Senior notes | 5 3/4 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 838,000,000 | 837,000,000 | |||||||
Debt instrument, face amount | $ 850,000,000 | $ 850,000,000 | |||||||
Senior notes | 5 1/2 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 800,000,000 | ||||||||
Senior notes | Add-on to Senior Notes 6 1/8 percent | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 525,000,000 | $ 525,000,000 | |||||||
Senior notes | URNA and subsidiaries | 8 1/4 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 315,000,000 | 687,000,000 | |||||||
Senior notes | URNA and subsidiaries | 7 3/8 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 740,000,000 | 738,000,000 | |||||||
Senior notes | URNA and subsidiaries | 7 5/8 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 1,306,000,000 | 1,303,000,000 | |||||||
Senior notes | URNA and subsidiaries | 6 1/8 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 937,000,000 | 938,000,000 | |||||||
Senior notes | URNA and subsidiaries | 5 1/2 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 791,000,000 | 0 | |||||||
Senior subordinated notes | URNA and subsidiaries | 8 3/8 percent Senior Subordinated Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 0 | 740,000,000 | |||||||
Accounts receivable facility | Accounts Receivable Securitization Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 625,000,000 | ||||||||
Accounts receivable facility | URNA and subsidiaries | Accounts Receivable Securitization Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | 571,000,000 | 548,000,000 | |||||||
Convertible debt | 4 percent Convertible Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt | $ 0 | $ 32,000,000 | |||||||
Stated interest rate | 4.00% | 4.00% | 4.00% | ||||||
Debt redeemed | $ 34,000,000 | ||||||||
Gains (losses) on extinguishment of debt | (1,000,000) | ||||||||
Interest expense | 5 3/4 percent Senior Secured Notes, 8 3/8 percent Senior Subordinated Notes and 8 1/4 percent Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Gains (losses) on extinguishment of debt | $ (121,000,000) | ||||||||
Total debt | New Accounting Pronouncement, early adoption effect | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 90,000,000 |
Debt (Short Term Debt Narrative
Debt (Short Term Debt Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Short-term Debt [Line Items] | |||
Short-term debt | $ 8,162,000,000 | $ 7,962,000,000 | |
Subsidiaries | |||
Short-term Debt [Line Items] | |||
Short-term debt | 8,162,000,000 | 7,930,000,000 | |
Accounts receivable facility | Accounts Receivable Securitization Facility | |||
Short-term Debt [Line Items] | |||
Average outstanding amount | $ 516,000,000 | ||
Interest rate during period | 0.80% | ||
Maximum month-end outstanding amount | $ 608,000,000 | ||
Line of credit facility, maximum borrowing capacity | $ 625,000,000 | ||
Extension period | 364 days | ||
Collateral amount | $ 620,000,000 | ||
Accounts receivable facility | Subsidiaries | Accounts Receivable Securitization Facility | |||
Short-term Debt [Line Items] | |||
Short-term debt | $ 571,000,000 | $ 548,000,000 |
Debt (Long Term Debt Narrative)
Debt (Long Term Debt Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Oct. 31, 2012 | Mar. 31, 2012 | Jan. 31, 2011 | Jun. 30, 2008 | Dec. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 30, 2014 | |
$2.5 billion ABL Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum revolving credit amount percentage | 10.00% | ||||||||||||||
8 1/4 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt redeemed | $ 350,000,000 | ||||||||||||||
6 1/8 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||
Credit facility | Line of credit | $2.5 billion ABL Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, term | 5 years | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000,000 | $ 1,250,000,000 | |||||||||||||
Line of credit facility, average outstanding amount | $ 1,500,000,000 | ||||||||||||||
Line of credit facility, interest rate during period | 1.90% | ||||||||||||||
Line of credit facility, maximum month-end outstanding amount | $ 1,800,000,000 | ||||||||||||||
Senior notes | 7 3/8 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||||||||
Proceeds from issuance of long-term debt | $ 732,000,000 | ||||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||||
Senior notes | 7 5/8 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 1,325,000,000 | ||||||||||||||
Proceeds from issuance of long-term debt | $ 1,295,000,000 | ||||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||||
Senior notes | 6 1/8 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Proceeds from issuance of long-term debt | $ 939,000,000 | ||||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||||
Effective interest rate | 5.70% | ||||||||||||||
Debt instrument, unamortized premium | $ 23,000,000 | ||||||||||||||
Senior notes | Add-on to Senior Notes 6 1/8 percent | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | 525,000,000 | $ 525,000,000 | |||||||||||||
Senior notes | 5 3/4 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | 850,000,000 | $ 850,000,000 | |||||||||||||
Proceeds from issuance of long-term debt | $ 837,000,000 | ||||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||||
Senior notes | 5 1/2 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | 800,000,000 | ||||||||||||||
Proceeds from issuance of long-term debt | $ 792,000,000 | ||||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||||
Senior notes | RSC Holdings Inc | 8 1/4 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 650,000,000 | 300,000,000 | |||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||||
Debt instrument, unamortized discount | $ 15,000,000 | ||||||||||||||
Effective interest rate | 7.00% | ||||||||||||||
Senior secured notes | 4 5/8 percent Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | ||||||||||||||
Proceeds from issuance of long-term debt | $ 990,000,000 | ||||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||||
12-month period commencing on May 15, 2019 | Senior notes | 5 3/4 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt redemption percentage | 102.875% | ||||||||||||||
12-month period commencing on May 15, 2022 | Senior notes | 5 3/4 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt redemption percentage | 100.00% | ||||||||||||||
Forecast | Senior notes | 7 3/8 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt redemption percentage | 100.00% | 103.688% | |||||||||||||
Forecast | Senior notes | 7 5/8 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt redemption percentage | 100.00% | 103.813% | |||||||||||||
Forecast | Senior notes | 6 1/8 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt redemption percentage | 100.00% | 103.063% | |||||||||||||
Forecast | Senior notes | 5 1/2 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt redemption percentage | 100.00% | 102.75% | |||||||||||||
Forecast | Senior notes | RSC Holdings Inc | 8 1/4 percent Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt redemption percentage | 100.00% | 104.125% | |||||||||||||
Forecast | Senior secured notes | 4 5/8 percent Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt redemption percentage | 100.00% | 103.469% |
Debt (Schedule of Debt Maturity
Debt (Schedule of Debt Maturity) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Maturity profile: | |
2,016 | $ 607 |
2,017 | 24 |
2,018 | 17 |
2,019 | 9 |
2,020 | 2,343 |
Thereafter | 5,206 |
Total | $ 8,206 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Federal statutory income tax rate | 35.00% | ||
Unrecognized tax benefits, interest on income taxes expense (less than $1 for December 31, 2015, 2014, and 2013 respectively) | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Income before income taxes, foreign | 70,000,000 | 168,000,000 | $ 153,000,000 |
Undistributed earnings of foreign subsidiaries amount | 651,000,000 | ||
Operating loss carryforwards, benefit | 463,000,000 | ||
State Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, operating loss carryforwards, state and local | 667,000,000 | ||
Valuation allowance, amount (less than $1 for December 31, 2014) | 12,000,000 | $ 1,000,000 | |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, operating loss carryforwards, state and local | 0 | ||
Alternative minimum tax credit carryforward, amount | $ 39,000,000 |
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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current | |||
Federal | $ 13 | $ 2 | $ 10 |
Foreign | 15 | 42 | 39 |
State and local | 14 | 5 | 2 |
Current income tax expense | 42 | 49 | 51 |
Deferred | |||
Federal | 300 | 240 | 149 |
Foreign | 5 | 2 | 4 |
State and local | 31 | 19 | 14 |
Deferred income tax expense (benefit) | 336 | 261 | 167 |
Total | 378 | 310 | 218 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Computed tax at statutory tax rate | 337 | 297 | 212 |
State income taxes, net of federal tax benefit | 41 | 22 | 15 |
Non-deductible expenses and other | 8 | 8 | 8 |
Foreign taxes | $ (8) | $ (17) | $ (17) |
Income Taxes (Components of def
Income Taxes (Components of deferred tax assets and liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Deferred Tax Assets [Abstract] | ||
Reserves and allowances | $ 112 | $ 107 |
Intangibles | 0 | 1 |
Debt cancellation and other | 48 | 58 |
Net operating loss and credit carryforwards | 73 | 237 |
Total deferred tax assets | 233 | 403 |
Components of Deferred Tax Liabilities [Abstract] | ||
Property and equipment | (1,714) | (1,535) |
Intangibles | (272) | (312) |
Valuation allowance | (12) | 0 |
Total deferred tax liability | (1,998) | (1,847) |
Total deferred income tax (liability) | $ (1,765) | $ (1,444) |
Income Taxes (Unrecognized tax
Income Taxes (Unrecognized tax benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns, Net [Roll Forward] | ||
Balance at January 1 | $ 7 | $ 7 |
Additions for tax positions of prior years | 1 | 0 |
Reductions for tax positions of prior years | (1) | 0 |
Settlements | (4) | 0 |
Balance at December 31 | $ 3 | $ 7 |
Commitments and Contingencies79
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Defined contribution plan, contributions | $ 22 | $ 19 | $ 17 |
Commitments and Contingencies80
Commitments and Contingencies (Future Minimum Operating Lease Payments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating leases, rent expense, minimum rentals | $ 139 | $ 131 | $ 135 |
Real Estate Leases | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,016 | 100 | ||
2,017 | 82 | ||
2,018 | 63 | ||
2,019 | 45 | ||
2,020 | 26 | ||
Thereafter | 44 | ||
Total | 360 | ||
Non-Rental Equipment Leases | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,016 | 38 | ||
2,017 | 36 | ||
2,018 | 29 | ||
2,019 | 23 | ||
2,020 | 23 | ||
Thereafter | 0 | ||
Total | $ 149 |
Commitments and Contingencies81
Commitments and Contingencies (Capital Lease Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Capital Leased Assets [Line Items] | |||
Debt and capital lease obligations | $ 8,162 | $ 7,962 | |
Depreciation of rental equipment | 976 | 921 | $ 852 |
Non-rental depreciation and amortization | 268 | 273 | 246 |
Less accumulated depreciation and amortization | (16) | (15) | |
Property and equipment, net | 13 | 18 | |
Rental Equipment | |||
Capital Leased Assets [Line Items] | |||
Depreciation of rental equipment | 20 | 20 | 22 |
Property and equipment | 186 | 177 | |
Less accumulated depreciation and amortization | (56) | (45) | |
Property and equipment, net | 130 | 132 | |
Non-rental Equipment | |||
Capital Leased Assets [Line Items] | |||
Non-rental depreciation and amortization | 3 | 4 | $ 5 |
Non-rental vehicles | |||
Capital Leased Assets [Line Items] | |||
Property and equipment | 8 | 13 | |
Buildings | |||
Capital Leased Assets [Line Items] | |||
Property and equipment | 21 | 20 | |
Subsidiaries | |||
Capital Leased Assets [Line Items] | |||
Debt and capital lease obligations | 8,162 | 7,930 | |
Capital leases | Subsidiaries | |||
Capital Leased Assets [Line Items] | |||
Debt and capital lease obligations | $ 96 | $ 105 |
Commitments and Contingencies82
Commitments and Contingencies (Future Minimum Capital Lease Payments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 38 |
2,017 | 27 |
2,018 | 19 |
2,019 | 10 |
2,020 | 4 |
Thereafter | 9 |
Total | 107 |
Less amount representing interest | (11) |
Capital lease obligations | $ 96 |
Capital leases | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Weighted average interest rate | 5.90% |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2014USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($) | |
Class of Stock [Line Items] | ||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
4 percent Convertible Senior Notes | ||||
Class of Stock [Line Items] | ||||
Common stock, capital shares reserved for future issuance | 0 | 3,800,000 | ||
Stated interest rate | 4.00% | 4.00% | 4.00% | |
Restricted Stock Units (RSUs) | ||||
Class of Stock [Line Items] | ||||
Restricted stock units outstanding (in shares) | 700,000 | |||
Share conversion ratio | 1 | |||
Shares issued for RSUs | 597,000 | |||
Shares paid for tax withholding | 351,000 | |||
Compensation expense not yet recognized | $ | $ 26 | |||
Compensation expense not yet recognized, period for recognition | 1 year 7 months 18 days | |||
Fair value of RSUs vested during the period | $ | $ 84 | $ 54 | $ 53 | |
Time-based Restricted Stock Units | ||||
Class of Stock [Line Items] | ||||
Vesting period | 3 years | |||
Vesting period, start duration from grant date | 12 months | |||
Employee stock option | ||||
Class of Stock [Line Items] | ||||
Common stock, capital shares reserved for future issuance | 600,000 | 700,000 | ||
2010 Long Term Incentive Plan | ||||
Class of Stock [Line Items] | ||||
Number of shares available for grant | 5,500,000 | |||
Convertible debt | 4 percent Convertible Senior Notes | ||||
Class of Stock [Line Items] | ||||
Stated interest rate | 4.00% | 4.00% | 4.00% | |
National Pump | ||||
Class of Stock [Line Items] | ||||
Value of stock issued in connection with business acquisition | $ | $ 15 | |||
National Pump | Restricted Stock Units (RSUs) | ||||
Class of Stock [Line Items] | ||||
Vesting period | 3 years | |||
Expense recorded during period related to stock awards | $ | $ 5 | $ 4 |
Common Stock (Schedule of Stock
Common Stock (Schedule of Stock Option Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 652 | 875 | 1,288 |
Granted (in shares) | 0 | 0 | 74 |
Exercised (shares) | (87) | (213) | (484) |
Canceled (in shares) | (4) | (10) | (3) |
Outstanding at end of period (in shares) | 561 | 652 | 875 |
Exercisable (in shares) | 537 | 564 | 684 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding at beginning of period (in dollars per share) | $ 19.99 | $ 17.85 | $ 13.69 |
Granted (in dollars per share) | 0 | 0 | 53.78 |
Exercised (in dollars per share) | 13.54 | 11.21 | 12.22 |
Canceled (in dollars per share) | 20.29 | 19.98 | 23.63 |
Outstanding at end of period (in dollars per share) | 20.99 | 19.99 | 17.85 |
Exercisable (in dollars per share) | $ 19.49 | $ 16.18 | $ 11.67 |
Common Stock (Schedule of Sto85
Common Stock (Schedule of Stock Option Exercise Prices) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Amount Outstanding (in shares) | shares | 561 |
Weighted Average Exercise Price (in dollars per share) | $ 20.99 |
Amount Exercisable (in shares) | shares | 537 |
Weighted Average Exercise Price (in dollars per share) | $ 19.49 |
$0.01-5.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | 0.01 |
Range of exercise prices, maximum (in dollars per share) | $ 5 |
Amount Outstanding (in shares) | shares | 100 |
Weighted Average Remaining Contractual Life (Years) | 3 years 2 months |
Weighted Average Exercise Price (in dollars per share) | $ 3.38 |
Amount Exercisable (in shares) | shares | 100 |
Weighted Average Exercise Price (in dollars per share) | $ 3.38 |
5.01-10.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | 5.01 |
Range of exercise prices, maximum (in dollars per share) | $ 10 |
Amount Outstanding (in shares) | shares | 189 |
Weighted Average Remaining Contractual Life (Years) | 4 years 2 months |
Weighted Average Exercise Price (in dollars per share) | $ 8.32 |
Amount Exercisable (in shares) | shares | 189 |
Weighted Average Exercise Price (in dollars per share) | $ 8.32 |
10.01-15.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | 10.01 |
Range of exercise prices, maximum (in dollars per share) | $ 15 |
Amount Outstanding (in shares) | shares | 14 |
Weighted Average Remaining Contractual Life (Years) | 3 years 1 month |
Weighted Average Exercise Price (in dollars per share) | $ 14.45 |
Amount Exercisable (in shares) | shares | 14 |
Weighted Average Exercise Price (in dollars per share) | $ 14.45 |
15.01-20.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | 15.01 |
Range of exercise prices, maximum (in dollars per share) | $ 20 |
Amount Outstanding (in shares) | shares | 20 |
Weighted Average Remaining Contractual Life (Years) | 3 years 8 months |
Weighted Average Exercise Price (in dollars per share) | $ 15.58 |
Amount Exercisable (in shares) | shares | 20 |
Weighted Average Exercise Price (in dollars per share) | $ 15.58 |
25.01-30.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | 25.01 |
Range of exercise prices, maximum (in dollars per share) | $ 30 |
Amount Outstanding (in shares) | shares | 51 |
Weighted Average Remaining Contractual Life (Years) | 3 years 6 months |
Weighted Average Exercise Price (in dollars per share) | $ 25.85 |
Amount Exercisable (in shares) | shares | 51 |
Weighted Average Exercise Price (in dollars per share) | $ 25.85 |
30.01-35.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | 30.01 |
Range of exercise prices, maximum (in dollars per share) | $ 35 |
Amount Outstanding (in shares) | shares | 62 |
Weighted Average Remaining Contractual Life (Years) | 5 years 2 months |
Weighted Average Exercise Price (in dollars per share) | $ 31.49 |
Amount Exercisable (in shares) | shares | 62 |
Weighted Average Exercise Price (in dollars per share) | $ 31.49 |
40.01-45.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | 40.01 |
Range of exercise prices, maximum (in dollars per share) | $ 45 |
Amount Outstanding (in shares) | shares | 51 |
Weighted Average Remaining Contractual Life (Years) | 6 years 1 month |
Weighted Average Exercise Price (in dollars per share) | $ 41.25 |
Amount Exercisable (in shares) | shares | 51 |
Weighted Average Exercise Price (in dollars per share) | $ 41.25 |
50.01-55.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | 50.01 |
Range of exercise prices, maximum (in dollars per share) | $ 55 |
Amount Outstanding (in shares) | shares | 74 |
Weighted Average Remaining Contractual Life (Years) | 7 years 2 months |
Weighted Average Exercise Price (in dollars per share) | $ 53.78 |
Amount Exercisable (in shares) | shares | 50 |
Weighted Average Exercise Price (in dollars per share) | $ 53.78 |
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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity and Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value of options outstanding as of December 31 | $ 29 | $ 53 | |
Intrinsic value of options exercisable as of December 31 | 28 | 48 | |
Intrinsic value of options exercised | $ 7 | $ 17 | $ 21 |
Weighted-average grant date fair value per option (in dollars per share) | $ 0 | $ 0 | $ 24.56 |
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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Units | |||
Nonvested as of December 31, 2014 (in shares) | 702 | ||
Granted (in shares) | 463 | 805 | 894 |
Vested (in shares) | (599) | ||
Forfeited (in shares) | (36) | ||
Nonvested as of December 31, 2015 (in shares) | 530 | 702 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested as of December 31, 2014 (in dollars per share) | $ 68.11 | ||
Granted (in dollars per share) | 86.84 | $ 92.28 | $ 57.50 |
Vested (in dollars per share) | 68.75 | ||
Forfeited (in dollars per share) | 94.30 | ||
Nonvested as of December 31, 2015 (in dollars per share) | $ 81.94 | $ 68.11 |
Quarterly Financial Informati88
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Total revenues | $ 1,523 | $ 1,550 | $ 1,429 | $ 1,315 | $ 1,564 | $ 1,544 | $ 1,399 | $ 1,178 | $ 5,817 | $ 5,685 | $ 4,955 |
Gross profit | 648 | 690 | 618 | 524 | 707 | 688 | 589 | 448 | 2,480 | 2,432 | 1,987 |
Operating income | 397 | 446 | 375 | 300 | 426 | 422 | 325 | 218 | 1,518 | 1,391 | 1,078 |
Net income | $ 169 | $ 215 | $ 86 | $ 115 | $ 194 | $ 192 | $ 94 | $ 60 | $ 585 | $ 540 | $ 387 |
Basic earnings per share (in dollars per share) | $ 1.82 | $ 2.28 | $ 0.89 | $ 1.19 | $ 1.96 | $ 1.95 | $ 0.98 | $ 0.63 | $ 6.14 | $ 5.54 | $ 4.14 |
Diluted earnings per share (in dollars per share) | $ 1.81 | 2.25 | 0.88 | 1.16 | $ 1.88 | 1.84 | 0.90 | 0.56 | $ 6.07 | $ 5.15 | $ 3.64 |
Increase (decrease) in stock compensation, net | $ (14) | $ 14 | |||||||||
Restructuring charge | $ 6 | $ (1) | $ 12 | ||||||||
Refund from tax settlement | 5 | $ 5 | |||||||||
Reduction in cost of equipment rentals, excluding depreciation | 5 | ||||||||||
Increase in valuation allowance | $ 5 | ||||||||||
Increase (decrease) in bad debt expense | $ 8 | ||||||||||
Earnings Per Share, Diluted, Other Disclosures [Abstract] | |||||||||||
Merger related costs (in dollars per share) | $ 0 | 0 | 0 | 0.17 | $ 0.02 | (0.02) | (0.05) | (0.01) | $ 0.17 | $ (0.06) | |
Merger related intangible asset amortization (in dollars per share) | (0.28) | (0.28) | (0.27) | (0.32) | (0.30) | (0.29) | (0.29) | (0.22) | (1.15) | (1.10) | |
Impact on depreciation related to acquired RSC fleet and property and equipment (in dollars per share) | 0 | 0 | 0 | 0.01 | 0.01 | 0.01 | 0.01 | 0 | 0.02 | 0.03 | |
Impact of the fair value mark-up of acquired RSC fleet (in dollars per share) | (0.07) | (0.04) | (0.04) | (0.04) | (0.05) | (0.05) | (0.06) | (0.05) | (0.19) | (0.21) | |
Impact on interest expense related to fair value adjustment of acquired RSC indebtedness (in dollars per share) | 0 | 0 | 0 | 0.01 | 0.01 | 0 | 0.01 | 0.01 | 0.02 | 0.03 | |
Restructuring charge (in dollars per share) | (0.03) | 0 | 0 | 0 | 0 | 0.01 | 0.01 | (0.01) | (0.04) | 0.01 | |
Loss on extinguishment of debt securities and amendment of ABL facility (in dollars per share) | $ 0 | $ 0 | $ (0.76) | $ (0.01) | $ 0 | $ (0.02) | $ (0.38) | $ (0.06) | $ (0.78) | $ (0.46) | |
2015-2016 Cost Savings Restructuring Program | |||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||
Restructuring charge | $ 4 | $ 4 |
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, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | 300 | ||||||||||
Numerator: | |||||||||||
Net income available to common stockholders | $ 585 | $ 540 | $ 387 | ||||||||
Denominator: | |||||||||||
Denominator for basic earnings per share—weighted-average common shares | 95,170 | 97,489 | 93,436 | ||||||||
Effect of dilutive securities: | |||||||||||
4 percent Convertible Senior Notes | 660 | 6,386 | 11,769 | ||||||||
Denominator for diluted earnings per share—adjusted weighted-average common shares | 96,379 | 104,956 | 106,291 | ||||||||
Basic earnings per share (in dollars per share) | $ 1.82 | $ 2.28 | $ 0.89 | $ 1.19 | $ 1.96 | $ 1.95 | $ 0.98 | $ 0.63 | $ 6.14 | $ 5.54 | $ 4.14 |
Diluted earnings per share (in dollars per share) | $ 1.81 | $ 2.25 | $ 0.88 | $ 1.16 | $ 1.88 | $ 1.84 | $ 0.90 | $ 0.56 | $ 6.07 | $ 5.15 | $ 3.64 |
4 percent Convertible Senior Notes | |||||||||||
Effect of dilutive securities: | |||||||||||
Stated interest rate | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | ||||||
Employee stock options and warrants | |||||||||||
Effect of dilutive securities: | |||||||||||
Share-based payment arrangements | 300 | 394 | 504 | ||||||||
Restricted stock units | |||||||||||
Effect of dilutive securities: | |||||||||||
Share-based payment arrangements | 249 | 687 | 582 |
Condensed Consolidating Finan90
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING BALANCE SHEETS (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Cash and cash equivalents | $ 179 | $ 158 | $ 175 | $ 106 |
Accounts receivable, net | 930 | 940 | ||
Intercompany receivable (payable) | 0 | 0 | ||
Inventory | 69 | 78 | ||
Prepaid expenses and other assets | 116 | 122 | ||
Total current assets | 1,294 | 1,298 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 3,243 | 3,272 | 2,953 | 2,970 |
Other intangible assets, net | 905 | 1,106 | ||
Other long-term assets | 10 | 7 | ||
Total assets | 12,083 | 12,129 | 10,876 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Short-term debt and current maturities of long-term debt | 607 | 618 | ||
Accounts payable | 271 | 285 | ||
Accrued expenses and other liabilities | 355 | 575 | ||
Total current liabilities | 1,233 | 1,478 | ||
Long-term debt | 7,555 | 7,344 | ||
Deferred taxes | 1,765 | 1,444 | ||
Other long-term liabilities | 54 | 65 | ||
Total liabilities | 10,607 | 10,331 | ||
Temporary equity | 0 | 2 | ||
Total stockholders’ equity (deficit) | 1,476 | 1,796 | ||
Total liabilities and stockholders’ equity | 12,083 | 12,129 | ||
Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivable (payable) | 101 | 121 | ||
Inventory | 0 | 0 | ||
Prepaid expenses and other assets | 0 | 0 | ||
Total current assets | 101 | 121 | ||
Investments in subsidiaries | (3,189) | (3,555) | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | (3,088) | (3,434) | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Short-term debt and current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Temporary equity | 0 | 0 | ||
Total stockholders’ equity (deficit) | (3,088) | (3,434) | ||
Total liabilities and stockholders’ equity | (3,088) | (3,434) | ||
Parent | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivable (payable) | 144 | 476 | ||
Inventory | 0 | 0 | ||
Prepaid expenses and other assets | 0 | 0 | ||
Total current assets | 144 | 476 | ||
Investments in subsidiaries | 1,307 | 1,330 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other long-term assets | 3 | 0 | ||
Total assets | 1,499 | 1,849 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Short-term debt and current maturities of long-term debt | 1 | 32 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Total current liabilities | 1 | 32 | ||
Long-term debt | 4 | 0 | ||
Deferred taxes | 18 | 19 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 23 | 51 | ||
Temporary equity | 0 | 2 | ||
Total stockholders’ equity (deficit) | 1,476 | 1,796 | ||
Total liabilities and stockholders’ equity | $ 1,499 | 1,849 | ||
URNA | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Ownership percentage in subsidiaries | 100.00% | |||
ASSETS | ||||
Cash and cash equivalents | $ 18 | 8 | 17 | 20 |
Accounts receivable, net | 41 | 37 | ||
Intercompany receivable (payable) | 40 | (428) | ||
Inventory | 62 | 69 | ||
Prepaid expenses and other assets | 98 | 113 | ||
Total current assets | 259 | (201) | ||
Investments in subsidiaries | 958 | 1,185 | ||
Goodwill | 3,000 | 3,000 | ||
Other intangible assets, net | 838 | 1,014 | ||
Other long-term assets | 7 | 7 | ||
Total assets | 11,053 | 10,735 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Short-term debt and current maturities of long-term debt | 34 | 38 | ||
Accounts payable | 237 | 248 | ||
Accrued expenses and other liabilities | 314 | 499 | ||
Total current liabilities | 585 | 785 | ||
Long-term debt | 7,430 | 7,208 | ||
Deferred taxes | 1,677 | 1,348 | ||
Other long-term liabilities | 54 | 64 | ||
Total liabilities | 9,746 | 9,405 | ||
Temporary equity | 0 | 0 | ||
Total stockholders’ equity (deficit) | 1,307 | 1,330 | ||
Total liabilities and stockholders’ equity | $ 11,053 | 10,735 | ||
Guarantor Subsidiaries | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Ownership percentage in subsidiaries | 100.00% | |||
ASSETS | ||||
Cash and cash equivalents | $ 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivable (payable) | (176) | (60) | ||
Inventory | 0 | 0 | ||
Prepaid expenses and other assets | 0 | 1 | ||
Total current assets | (176) | (59) | ||
Investments in subsidiaries | 924 | 1,040 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 768 | 1,002 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Short-term debt and current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 14 | 19 | ||
Total current liabilities | 14 | 19 | ||
Long-term debt | 110 | 130 | ||
Deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 124 | 149 | ||
Temporary equity | 0 | 0 | ||
Total stockholders’ equity (deficit) | 644 | 853 | ||
Total liabilities and stockholders’ equity | 768 | 1,002 | ||
Non Guarantor Subsidiaries - Foreign | ||||
ASSETS | ||||
Cash and cash equivalents | 161 | 150 | 158 | 86 |
Accounts receivable, net | 104 | 144 | ||
Intercompany receivable (payable) | (109) | (109) | ||
Inventory | 7 | 9 | ||
Prepaid expenses and other assets | 18 | 8 | ||
Total current assets | 181 | 202 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 243 | 272 | ||
Other intangible assets, net | 67 | 92 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 1,066 | 1,218 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Short-term debt and current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 34 | 37 | ||
Accrued expenses and other liabilities | 27 | 57 | ||
Total current liabilities | 61 | 94 | ||
Long-term debt | 11 | 6 | ||
Deferred taxes | 70 | 77 | ||
Other long-term liabilities | 0 | 1 | ||
Total liabilities | 142 | 178 | ||
Temporary equity | 0 | 0 | ||
Total stockholders’ equity (deficit) | 924 | 1,040 | ||
Total liabilities and stockholders’ equity | 1,066 | 1,218 | ||
Non Guarantor Subsidiaries - SPV | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 785 | 759 | ||
Intercompany receivable (payable) | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid expenses and other assets | 0 | 0 | ||
Total current assets | 785 | 759 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 785 | 759 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Short-term debt and current maturities of long-term debt | 572 | 548 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Total current liabilities | 572 | 548 | ||
Long-term debt | 0 | 0 | ||
Deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 572 | 548 | ||
Temporary equity | 0 | 0 | ||
Total stockholders’ equity (deficit) | 213 | 211 | ||
Total liabilities and stockholders’ equity | $ 785 | $ 759 | ||
8 1/4 percent Senior Notes | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Stated interest rate | 8.25% | 8.25% | ||
ABL Facility, Accounts Receivable Securitization Facility, and Other Agreements | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Line of credit facility, restricted payment capacity | $ 499 | |||
ABL Facility, Accounts Receivable Securitization Facility, and Other Agreements | URNA | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Line of credit facility, restricted payment capacity | 355 | |||
Rental equipment, net | ||||
ASSETS | ||||
Property, plant and equipment, net | 6,186 | $ 6,008 | ||
Rental equipment, net | Eliminations | ||||
ASSETS | ||||
Property, plant and equipment, net | 0 | 0 | ||
Rental equipment, net | Parent | ||||
ASSETS | ||||
Property, plant and equipment, net | 0 | 0 | ||
Rental equipment, net | URNA | ||||
ASSETS | ||||
Property, plant and equipment, net | 5,657 | 5,399 | ||
Rental equipment, net | Guarantor Subsidiaries | ||||
ASSETS | ||||
Property, plant and equipment, net | 0 | 0 | ||
Rental equipment, net | Non Guarantor Subsidiaries - Foreign | ||||
ASSETS | ||||
Property, plant and equipment, net | 529 | 609 | ||
Rental equipment, net | Non Guarantor Subsidiaries - SPV | ||||
ASSETS | ||||
Property, plant and equipment, net | 0 | 0 | ||
Property and equipment, net | ||||
ASSETS | ||||
Property, plant and equipment, net | 445 | 438 | ||
Property and equipment, net | Eliminations | ||||
ASSETS | ||||
Property, plant and equipment, net | 0 | 0 | ||
Property and equipment, net | Parent | ||||
ASSETS | ||||
Property, plant and equipment, net | 45 | 43 | ||
Property and equipment, net | URNA | ||||
ASSETS | ||||
Property, plant and equipment, net | 334 | 331 | ||
Property and equipment, net | Guarantor Subsidiaries | ||||
ASSETS | ||||
Property, plant and equipment, net | 20 | 21 | ||
Property and equipment, net | Non Guarantor Subsidiaries - Foreign | ||||
ASSETS | ||||
Property, plant and equipment, net | 46 | 43 | ||
Property and equipment, net | Non Guarantor Subsidiaries - SPV | ||||
ASSETS | ||||
Property, plant and equipment, net | $ 0 | $ 0 |
Condensed Consolidating Finan91
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Revenues: | ||||||||||||
Equipment rentals | $ 4,949 | $ 4,819 | $ 4,196 | |||||||||
Sales of rental equipment | 538 | 544 | 490 | |||||||||
Sales of new equipment | 157 | 149 | 104 | |||||||||
Contractor supplies sales | 79 | 85 | 87 | |||||||||
Service and other revenues | 94 | 88 | 78 | |||||||||
Total revenues | $ 1,523 | $ 1,550 | $ 1,429 | $ 1,315 | $ 1,564 | $ 1,544 | $ 1,399 | $ 1,178 | 5,817 | 5,685 | 4,955 | |
Cost of revenues: | ||||||||||||
Cost of equipment rentals, excluding depreciation | 1,826 | 1,806 | 1,634 | |||||||||
Depreciation of rental equipment | 976 | 921 | 852 | |||||||||
Cost of rental equipment sales | 311 | 315 | 314 | |||||||||
Cost of new equipment sales | 131 | 120 | 84 | |||||||||
Cost of contractor supplies sales | 55 | 59 | 59 | |||||||||
Cost of service and other revenues | 38 | 32 | 25 | |||||||||
Total cost of revenues | 3,337 | 3,253 | 2,968 | |||||||||
Gross profit | 648 | 690 | 618 | 524 | 707 | 688 | 589 | 448 | 2,480 | 2,432 | 1,987 | |
Selling, general and administrative expenses | 714 | 758 | 642 | |||||||||
Merger related costs | (26) | 11 | 9 | |||||||||
Restructuring charge | 6 | (1) | 12 | |||||||||
Non-rental depreciation and amortization | 268 | 273 | 246 | |||||||||
Operating income | 397 | 446 | 375 | 300 | 426 | 422 | 325 | 218 | 1,518 | 1,391 | 1,078 | |
Interest (income) expense, net | 567 | 555 | 475 | |||||||||
Interest expense—subordinated convertible debentures | 0 | 0 | 3 | |||||||||
Other (income) expense, net | (12) | (14) | (5) | |||||||||
Income before provision for income taxes | 963 | 850 | 605 | |||||||||
Provision for income taxes | 378 | 310 | 218 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 585 | 540 | 387 | |||||||||
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | |||||||||
Net income | $ 169 | $ 215 | $ 86 | $ 115 | $ 194 | $ 192 | $ 94 | $ 60 | 585 | 540 | 387 | |
Other comprehensive (loss) income | [1] | (176) | (93) | (65) | ||||||||
Comprehensive income | 409 | 447 | 322 | |||||||||
Eliminations | ||||||||||||
Revenues: | ||||||||||||
Equipment rentals | 0 | 0 | 0 | |||||||||
Sales of rental equipment | 0 | 0 | 0 | |||||||||
Sales of new equipment | 0 | 0 | 0 | |||||||||
Contractor supplies sales | 0 | 0 | 0 | |||||||||
Service and other revenues | 0 | 0 | 0 | |||||||||
Total revenues | 0 | 0 | 0 | |||||||||
Cost of revenues: | ||||||||||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | |||||||||
Depreciation of rental equipment | 0 | 0 | 0 | |||||||||
Cost of rental equipment sales | 0 | 0 | 0 | |||||||||
Cost of new equipment sales | 0 | 0 | 0 | |||||||||
Cost of contractor supplies sales | 0 | 0 | 0 | |||||||||
Cost of service and other revenues | 0 | 0 | 0 | |||||||||
Total cost of revenues | 0 | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | |||||||||
Merger related costs | 0 | 0 | 0 | |||||||||
Restructuring charge | 0 | 0 | 0 | |||||||||
Non-rental depreciation and amortization | 0 | 0 | 0 | |||||||||
Operating income | 0 | 0 | 0 | |||||||||
Interest (income) expense, net | (5) | (6) | (7) | |||||||||
Interest expense—subordinated convertible debentures | 0 | |||||||||||
Other (income) expense, net | 0 | 0 | 0 | |||||||||
Income before provision for income taxes | 5 | 6 | 7 | |||||||||
Provision for income taxes | 0 | 0 | 0 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 5 | 6 | 7 | |||||||||
Equity in net earnings (loss) of subsidiaries | (473) | (770) | (604) | |||||||||
Net income | (468) | (764) | (597) | |||||||||
Other comprehensive (loss) income | 490 | 255 | 180 | |||||||||
Comprehensive income | 22 | (509) | (417) | |||||||||
Parent | ||||||||||||
Revenues: | ||||||||||||
Equipment rentals | 0 | 0 | 0 | |||||||||
Sales of rental equipment | 0 | 0 | 0 | |||||||||
Sales of new equipment | 0 | 0 | 0 | |||||||||
Contractor supplies sales | 0 | 0 | 0 | |||||||||
Service and other revenues | 0 | 0 | 0 | |||||||||
Total revenues | 0 | 0 | 0 | |||||||||
Cost of revenues: | ||||||||||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | |||||||||
Depreciation of rental equipment | 0 | 0 | 0 | |||||||||
Cost of rental equipment sales | 0 | 0 | 0 | |||||||||
Cost of new equipment sales | 0 | 0 | 0 | |||||||||
Cost of contractor supplies sales | 0 | 0 | 0 | |||||||||
Cost of service and other revenues | 0 | 0 | 0 | |||||||||
Total cost of revenues | 0 | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Selling, general and administrative expenses | 5 | 55 | 8 | |||||||||
Merger related costs | 0 | 0 | 0 | |||||||||
Restructuring charge | 0 | 0 | 0 | |||||||||
Non-rental depreciation and amortization | 15 | 17 | 17 | |||||||||
Operating income | (20) | (72) | (25) | |||||||||
Interest (income) expense, net | (3) | 9 | 12 | |||||||||
Interest expense—subordinated convertible debentures | 3 | |||||||||||
Other (income) expense, net | (471) | (149) | (132) | |||||||||
Income before provision for income taxes | 454 | 68 | 92 | |||||||||
Provision for income taxes | 201 | 1 | 38 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 253 | 67 | 54 | |||||||||
Equity in net earnings (loss) of subsidiaries | 332 | 473 | 333 | |||||||||
Net income | 585 | 540 | 387 | |||||||||
Other comprehensive (loss) income | (176) | (93) | (65) | |||||||||
Comprehensive income | 409 | 447 | 322 | |||||||||
URNA | ||||||||||||
Revenues: | ||||||||||||
Equipment rentals | 4,452 | 4,217 | 3,612 | |||||||||
Sales of rental equipment | 480 | 478 | 438 | |||||||||
Sales of new equipment | 137 | 124 | 82 | |||||||||
Contractor supplies sales | 69 | 70 | 70 | |||||||||
Service and other revenues | 80 | 73 | 62 | |||||||||
Total revenues | 5,218 | 4,962 | 4,264 | |||||||||
Cost of revenues: | ||||||||||||
Cost of equipment rentals, excluding depreciation | 1,603 | 1,558 | 1,391 | |||||||||
Depreciation of rental equipment | 881 | 820 | 752 | |||||||||
Cost of rental equipment sales | 279 | 277 | 283 | |||||||||
Cost of new equipment sales | 115 | 101 | 67 | |||||||||
Cost of contractor supplies sales | 48 | 49 | 48 | |||||||||
Cost of service and other revenues | 33 | 27 | 19 | |||||||||
Total cost of revenues | 2,959 | 2,832 | 2,560 | |||||||||
Gross profit | 2,259 | 2,130 | 1,704 | |||||||||
Selling, general and administrative expenses | 596 | 607 | 541 | |||||||||
Merger related costs | (26) | 11 | 9 | |||||||||
Restructuring charge | 5 | (1) | 12 | |||||||||
Non-rental depreciation and amortization | 228 | 226 | 210 | |||||||||
Operating income | 1,456 | 1,287 | 932 | |||||||||
Interest (income) expense, net | 559 | 538 | 454 | |||||||||
Interest expense—subordinated convertible debentures | 0 | |||||||||||
Other (income) expense, net | 513 | 212 | 191 | |||||||||
Income before provision for income taxes | 384 | 537 | 287 | |||||||||
Provision for income taxes | 141 | 236 | 113 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 243 | 301 | 174 | |||||||||
Equity in net earnings (loss) of subsidiaries | 89 | 172 | 159 | |||||||||
Net income | 332 | 473 | 333 | |||||||||
Other comprehensive (loss) income | (176) | (93) | (65) | |||||||||
Comprehensive income | 156 | 380 | 268 | |||||||||
Guarantor Subsidiaries | ||||||||||||
Revenues: | ||||||||||||
Equipment rentals | 0 | 0 | 0 | |||||||||
Sales of rental equipment | 0 | 0 | 0 | |||||||||
Sales of new equipment | 0 | 0 | 0 | |||||||||
Contractor supplies sales | 0 | 0 | 0 | |||||||||
Service and other revenues | 0 | 0 | 0 | |||||||||
Total revenues | 0 | 0 | 0 | |||||||||
Cost of revenues: | ||||||||||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | |||||||||
Depreciation of rental equipment | 0 | 0 | 0 | |||||||||
Cost of rental equipment sales | 0 | 0 | 0 | |||||||||
Cost of new equipment sales | 0 | 0 | 0 | |||||||||
Cost of contractor supplies sales | 0 | 0 | 0 | |||||||||
Cost of service and other revenues | 0 | 0 | 0 | |||||||||
Total cost of revenues | 0 | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Selling, general and administrative expenses | 1 | 3 | 0 | |||||||||
Merger related costs | 0 | 0 | 0 | |||||||||
Restructuring charge | 0 | 0 | 0 | |||||||||
Non-rental depreciation and amortization | 1 | 1 | 0 | |||||||||
Operating income | (2) | (4) | 0 | |||||||||
Interest (income) expense, net | 8 | 5 | 6 | |||||||||
Interest expense—subordinated convertible debentures | 0 | |||||||||||
Other (income) expense, net | 0 | (3) | 0 | |||||||||
Income before provision for income taxes | (10) | (6) | (6) | |||||||||
Provision for income taxes | (5) | 0 | (2) | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | (5) | (6) | (4) | |||||||||
Equity in net earnings (loss) of subsidiaries | 52 | 125 | 112 | |||||||||
Net income | 47 | 119 | 108 | |||||||||
Other comprehensive (loss) income | (175) | (90) | (65) | |||||||||
Comprehensive income | (128) | 29 | 43 | |||||||||
Non Guarantor Subsidiaries - Foreign | ||||||||||||
Revenues: | ||||||||||||
Equipment rentals | 497 | 602 | 584 | |||||||||
Sales of rental equipment | 58 | 66 | 52 | |||||||||
Sales of new equipment | 20 | 25 | 22 | |||||||||
Contractor supplies sales | 10 | 15 | 17 | |||||||||
Service and other revenues | 14 | 15 | 16 | |||||||||
Total revenues | 599 | 723 | 691 | |||||||||
Cost of revenues: | ||||||||||||
Cost of equipment rentals, excluding depreciation | 223 | 248 | 243 | |||||||||
Depreciation of rental equipment | 95 | 101 | 100 | |||||||||
Cost of rental equipment sales | 32 | 38 | 31 | |||||||||
Cost of new equipment sales | 16 | 19 | 17 | |||||||||
Cost of contractor supplies sales | 7 | 10 | 11 | |||||||||
Cost of service and other revenues | 5 | 5 | 6 | |||||||||
Total cost of revenues | 378 | 421 | 408 | |||||||||
Gross profit | 221 | 302 | 283 | |||||||||
Selling, general and administrative expenses | 79 | 84 | 88 | |||||||||
Merger related costs | 0 | 0 | 0 | |||||||||
Restructuring charge | 1 | 0 | 0 | |||||||||
Non-rental depreciation and amortization | 24 | 29 | 19 | |||||||||
Operating income | 117 | 189 | 176 | |||||||||
Interest (income) expense, net | 3 | 4 | 5 | |||||||||
Interest expense—subordinated convertible debentures | 0 | |||||||||||
Other (income) expense, net | 44 | 17 | 18 | |||||||||
Income before provision for income taxes | 70 | 168 | 153 | |||||||||
Provision for income taxes | 18 | 43 | 41 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 52 | 125 | 112 | |||||||||
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | |||||||||
Net income | 52 | 125 | 112 | |||||||||
Other comprehensive (loss) income | (139) | (72) | (50) | |||||||||
Comprehensive income | (87) | 53 | 62 | |||||||||
Non Guarantor Subsidiaries - SPV | ||||||||||||
Revenues: | ||||||||||||
Equipment rentals | 0 | 0 | 0 | |||||||||
Sales of rental equipment | 0 | 0 | 0 | |||||||||
Sales of new equipment | 0 | 0 | 0 | |||||||||
Contractor supplies sales | 0 | 0 | 0 | |||||||||
Service and other revenues | 0 | 0 | 0 | |||||||||
Total revenues | 0 | 0 | 0 | |||||||||
Cost of revenues: | ||||||||||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | |||||||||
Depreciation of rental equipment | 0 | 0 | 0 | |||||||||
Cost of rental equipment sales | 0 | 0 | 0 | |||||||||
Cost of new equipment sales | 0 | 0 | 0 | |||||||||
Cost of contractor supplies sales | 0 | 0 | 0 | |||||||||
Cost of service and other revenues | 0 | 0 | 0 | |||||||||
Total cost of revenues | 0 | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Selling, general and administrative expenses | 33 | 9 | 5 | |||||||||
Merger related costs | 0 | 0 | 0 | |||||||||
Restructuring charge | 0 | 0 | 0 | |||||||||
Non-rental depreciation and amortization | 0 | 0 | 0 | |||||||||
Operating income | (33) | (9) | (5) | |||||||||
Interest (income) expense, net | 5 | 5 | 5 | |||||||||
Interest expense—subordinated convertible debentures | 0 | |||||||||||
Other (income) expense, net | (98) | (91) | (82) | |||||||||
Income before provision for income taxes | 60 | 77 | 72 | |||||||||
Provision for income taxes | 23 | 30 | 28 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 37 | 47 | 44 | |||||||||
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | |||||||||
Net income | 37 | 47 | 44 | |||||||||
Other comprehensive (loss) income | 0 | 0 | 0 | |||||||||
Comprehensive income | $ 37 | $ 47 | $ 44 | |||||||||
[1] | There were no material reclassifications from accumulated other comprehensive (loss) income reflected in other comprehensive loss during the years ended December 31, 2015, 2014 or 2013. There is no tax impact related to the foreign currency translation adjustments, as the earnings are considered permanently reinvested. There were no material taxes associated with other comprehensive loss during the years ended December 31, 2015, 2014 or 2013. |
Condensed Consolidating Finan92
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ 1,995 | $ 1,801 | $ 1,551 |
Net cash used in investing activities | (1,170) | (2,000) | (1,177) |
Net cash (used in) provided by financing activities | (775) | 196 | (295) |
Effect of foreign exchange rates | (29) | (14) | (10) |
Net increase (decrease) in cash and cash equivalents | 21 | (17) | 69 |
Cash and cash equivalents at beginning of year | 158 | 175 | 106 |
Cash and cash equivalents at end of year | 179 | 158 | 175 |
Eliminations | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | 0 | 0 | 0 |
Effect of foreign exchange rates | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 |
Cash and cash equivalents at end of year | 0 | 0 | 0 |
Parent | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 13 | 13 | 26 |
Net cash used in investing activities | (13) | (13) | (26) |
Net cash (used in) provided by financing activities | 0 | 0 | 0 |
Effect of foreign exchange rates | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 |
Cash and cash equivalents at end of year | 0 | 0 | 0 |
URNA | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 1,804 | 1,644 | 1,285 |
Net cash used in investing activities | (1,035) | (1,773) | (1,018) |
Net cash (used in) provided by financing activities | (759) | 120 | (270) |
Effect of foreign exchange rates | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 10 | (9) | (3) |
Cash and cash equivalents at beginning of year | 8 | 17 | 20 |
Cash and cash equivalents at end of year | 18 | 8 | 17 |
Guarantor Subsidiaries | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (3) | 4 | 4 |
Net cash used in investing activities | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | 3 | (4) | (4) |
Effect of foreign exchange rates | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 |
Cash and cash equivalents at end of year | 0 | 0 | 0 |
Non Guarantor Subsidiaries - Foreign | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 170 | 223 | 216 |
Net cash used in investing activities | (122) | (214) | (133) |
Net cash (used in) provided by financing activities | (8) | (3) | (1) |
Effect of foreign exchange rates | (29) | (14) | (10) |
Net increase (decrease) in cash and cash equivalents | 11 | (8) | 72 |
Cash and cash equivalents at beginning of year | 150 | 158 | 86 |
Cash and cash equivalents at end of year | 161 | 150 | 158 |
Non Guarantor Subsidiaries - SPV | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 11 | (83) | 20 |
Net cash used in investing activities | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | (11) | 83 | (20) |
Effect of foreign exchange rates | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 |
Cash and cash equivalents at end of year | $ 0 | $ 0 | $ 0 |
Schedule II - Valuation and Q93
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 43 | $ 49 | $ 64 |
Charged to Costs and Expenses | 32 | 13 | 4 |
Deductions | 20 | 19 | 19 |
Balance at End of Period | 55 | 43 | 49 |
Reserve for obsolescence and shrinkage | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 3 | 3 | 3 |
Charged to Costs and Expenses | 18 | 18 | 16 |
Deductions | 17 | 18 | 16 |
Balance at End of Period | 4 | 3 | 3 |
Self-insurance reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 92 | 94 | 97 |
Charged to Costs and Expenses | 110 | 105 | 92 |
Deductions | 112 | 107 | 95 |
Balance at End of Period | $ 90 | $ 92 | $ 94 |