Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 21, 2019 | Jun. 30, 2018 | |
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, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 79,591,082 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 10,800 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 43 | $ 352 |
Accounts receivable, net of allowance for doubtful accounts of $93 at December 31, 2018 and $68 at December 31, 2017 | 1,545 | 1,233 |
Inventory | 109 | 75 |
Prepaid expenses and other assets | 64 | 112 |
Total current assets | 1,761 | 1,772 |
Rental equipment, net | 9,600 | 7,824 |
Property and equipment, net | 614 | 467 |
Goodwill | 5,058 | 4,082 |
Other intangible assets, net | 1,084 | 875 |
Other long-term assets | 16 | 10 |
Total assets | 18,133 | 15,030 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Short-term debt and current maturities of long-term debt | 903 | 723 |
Accounts payable | 536 | 409 |
Accrued expenses and other liabilities | 677 | 536 |
Total current liabilities | 2,116 | 1,668 |
Long-term debt | 10,844 | 8,717 |
Deferred taxes | 1,687 | 1,419 |
Other long-term liabilities | 83 | 120 |
Total liabilities | 14,730 | 11,924 |
Common stock—$0.01 par value, 500,000,000 shares authorized, 112,907,209 and 79,872,956 shares issued and outstanding, respectively, at December 31, 2018 and 112,394,395 and 84,463,662 shares issued and outstanding, respectively, at December 31, 2017 | 1 | 1 |
Additional paid-in capital | 2,408 | 2,356 |
Retained earnings | 4,101 | 3,005 |
Treasury stock at cost—33,034,253 and 27,930,733 shares at December 31, 2018 and December 31, 2017, respectively | (2,870) | (2,105) |
Accumulated other comprehensive loss | (237) | (151) |
Total stockholders’ equity | 3,403 | 3,106 |
Total liabilities and stockholders’ equity | $ 18,133 | $ 15,030 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 93 | $ 68 |
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 | 112,907,209 | 112,394,395 |
Common stock, shares outstanding | 79,872,956 | 84,463,662 |
Treasury stock, shares | 33,034,253 | 27,930,733 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||||||||||
Total revenues | $ 2,306 | $ 2,116 | $ 1,891 | $ 1,734 | $ 1,922 | $ 1,766 | $ 1,597 | $ 1,356 | $ 8,047 | $ 6,641 | $ 5,762 |
Cost of revenues: | |||||||||||
Cost of equipment rentals, excluding depreciation | 2,614 | 2,151 | 1,862 | ||||||||
Depreciation of rental equipment | 1,363 | 1,124 | 990 | ||||||||
Total cost of revenues | 4,683 | 3,872 | 3,359 | ||||||||
Gross profit | 998 | 938 | 782 | 646 | 827 | 773 | 655 | 514 | 3,364 | 2,769 | 2,403 |
Selling, general and administrative expenses | 1,038 | 903 | 719 | ||||||||
Merger related costs | 22 | 18 | 36 | 50 | 0 | ||||||
Restructuring charge | 16 | 22 | 31 | 50 | 14 | ||||||
Non-rental depreciation and amortization | 308 | 259 | 255 | ||||||||
Operating income | 563 | 578 | 470 | 340 | 462 | 448 | 340 | 257 | 1,951 | 1,507 | 1,415 |
Interest expense, net | 481 | 464 | 511 | ||||||||
Other income, net | (6) | (5) | (5) | ||||||||
Income before provision (benefit) for income taxes | 1,476 | 1,048 | 909 | ||||||||
Provision (benefit) for income taxes (note 13) | 380 | (298) | 343 | ||||||||
Net income | $ 310 | $ 333 | $ 270 | $ 183 | $ 897 | $ 199 | $ 141 | $ 109 | $ 1,096 | $ 1,346 | $ 566 |
Basic earnings per share (in dollars per share) | $ 3.84 | $ 4.05 | $ 3.22 | $ 2.18 | $ 10.60 | $ 2.36 | $ 1.67 | $ 1.29 | $ 13.26 | $ 15.91 | $ 6.49 |
Diluted earnings per share (in dollars per share) | $ 3.80 | $ 4.01 | $ 3.20 | $ 2.15 | $ 10.45 | $ 2.33 | $ 1.65 | $ 1.27 | $ 13.12 | $ 15.73 | $ 6.45 |
Total equipment rentals | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 6,940 | $ 5,715 | $ 4,941 | ||||||||
Sales of rental equipment | |||||||||||
Revenues: | |||||||||||
Revenue from contract with customer, excluding assessed tax | 664 | 550 | 496 | ||||||||
Cost of revenues: | |||||||||||
Cost of goods and services sold | 386 | 330 | 292 | ||||||||
Sales of new equipment | |||||||||||
Revenues: | |||||||||||
Revenue from contract with customer, excluding assessed tax | 208 | 178 | 144 | ||||||||
Cost of revenues: | |||||||||||
Cost of goods and services sold | 179 | 152 | 119 | ||||||||
Contractor supplies sales | |||||||||||
Revenues: | |||||||||||
Revenue from contract with customer, excluding assessed tax | 91 | 80 | 79 | ||||||||
Cost of revenues: | |||||||||||
Cost of goods and services sold | 60 | 56 | 55 | ||||||||
Service and other revenues | |||||||||||
Revenues: | |||||||||||
Revenue from contract with customer, excluding assessed tax | 144 | 118 | 102 | ||||||||
Cost of revenues: | |||||||||||
Cost of goods and services sold | $ 81 | $ 59 | $ 41 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||||||||||
Net income | $ 310 | $ 333 | $ 270 | $ 183 | $ 897 | $ 199 | $ 141 | $ 109 | $ 1,096 | $ 1,346 | $ 566 | |
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation adjustments | (84) | 67 | 28 | |||||||||
Fixed price diesel swaps | (2) | 0 | 4 | |||||||||
Other comprehensive (loss) income | [1] | (86) | 67 | 32 | ||||||||
Comprehensive income | $ 1,010 | $ 1,413 | $ 598 | |||||||||
[1] | There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive income (loss) during the years ended December 31, 2018 , 2017 or 2016 . There is no tax impact related to the foreign currency translation adjustments, as the earnings are considered permanently reinvested (see note 13 to the consolidated financial statements for further discussion addressing this determination). There were no material taxes associated with other comprehensive income (loss) during the years ended December 31, 2018 , 2017 or 2016 . |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Reclassifications from AOCI reflected in other comprehensive income | $ 0 | $ 0 | $ 0 |
Tax impact related to foreign currency translation adjustments | 0 | 0 | 0 |
Taxes associated with other comprehensive income (loss) | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | ||
Balance (in shares) at Dec. 31, 2015 | 92 | (20) | ||||||
Balance at Dec. 31, 2015 | $ 1 | $ 2,197 | $ 1,088 | $ (1,560) | $ (250) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 566 | 566 | ||||||
Foreign currency translation adjustments | 28 | 28 | ||||||
Fixed price diesel swaps | 4 | 4 | ||||||
Stock compensation expense, net | 45 | |||||||
Exercise of common stock options | 1 | |||||||
Shares repurchased and retired | (11) | |||||||
Repurchase of common stock (in shares) | 8 | 8 | ||||||
Repurchase of common stock | $ (517) | |||||||
Excess tax benefits from share-based payment arrangements, net | 56 | |||||||
Balance (in shares) at Dec. 31, 2016 | 84 | (28) | ||||||
Balance at Dec. 31, 2016 | $ 1 | 2,288 | 1,654 | $ (2,077) | (218) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of a change in accounting for share-based payments | 5 | |||||||
Net income | 1,346 | 1,346 | ||||||
Foreign currency translation adjustments | 67 | 67 | ||||||
Fixed price diesel swaps | 0 | |||||||
Neff acquisition | 7 | |||||||
Stock compensation expense, net | [1] | 91 | ||||||
Exercise of common stock options | 3 | |||||||
Shares repurchased and retired | (28) | |||||||
Repurchase of common stock (in shares) | 0 | |||||||
Repurchase of common stock | $ (28) | |||||||
Other | (5) | |||||||
Balance (in shares) at Dec. 31, 2017 | 84 | (28) | ||||||
Balance at Dec. 31, 2017 | 3,106 | $ 1 | 2,356 | 3,005 | $ (2,105) | (151) | [2] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,096 | 1,096 | ||||||
Foreign currency translation adjustments | (84) | (84) | [2] | |||||
Fixed price diesel swaps | (2) | (2) | [2] | |||||
Stock compensation expense, net (in shares) | 1 | |||||||
Stock compensation expense, net | 102 | |||||||
Exercise of common stock options | 2 | |||||||
Shares repurchased and retired | (52) | |||||||
Repurchase of common stock (in shares) | 5 | 5 | ||||||
Repurchase of common stock | $ (765) | |||||||
Balance (in shares) at Dec. 31, 2018 | 80 | (33) | ||||||
Balance at Dec. 31, 2018 | $ 3,403 | $ 1 | $ 2,408 | $ 4,101 | $ (2,870) | $ (237) | [2] | |
[1] | Includes net stock compensation expense as reported as a separate component in our consolidated statements of cash flows, and net stock compensation expense included in “Restructuring charge” as reported in our consolidated statements of cash flows. | |||||||
[2] | As of December 31, 2018 , 2017 and 2016 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows From Operating Activities: | |||
Net income | $ 1,096 | $ 1,346 | $ 566 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,671 | 1,383 | 1,245 |
Amortization of deferred financing costs and original issue discounts | 12 | 9 | 9 |
Gain on sales of rental equipment | (278) | (220) | (204) |
Gain on sales of non-rental equipment | (6) | (4) | (4) |
Gain on insurance proceeds from damaged equipment | 22 | 21 | 12 |
Stock compensation expense, net | 102 | 87 | 45 |
Merger related costs | 36 | 50 | 0 |
Restructuring charge | 31 | 50 | 14 |
Loss on repurchase/redemption of debt securities and amendment of ABL facility | 0 | 54 | 101 |
Excess tax benefits from share-based payment arrangements | 0 | 0 | (58) |
Increase (decrease) in deferred taxes (note 13) | 257 | (533) | 123 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | (115) | (184) | 15 |
(Increase) decrease in inventory | (20) | 1 | 1 |
Decrease (increase) in prepaid expenses and other assets | 75 | (20) | 77 |
Increase (decrease) in accounts payable | 49 | 141 | (29) |
(Decrease) increase in accrued expenses and other liabilities | (35) | 70 | 52 |
Net cash provided by operating activities | 2,853 | 2,209 | 1,941 |
Cash Flows From Investing Activities: | |||
Purchases of rental equipment | (2,106) | (1,769) | (1,246) |
Purchases of non-rental equipment | (185) | (120) | (93) |
Proceeds from sales of rental equipment | 664 | 550 | 496 |
Proceeds from sales of non-rental equipment | 23 | 16 | 14 |
Insurance proceeds from damaged equipment | 22 | 21 | 12 |
Purchases of other companies, net of cash acquired | (2,966) | (2,377) | (28) |
Purchases of investments | (3) | (5) | (2) |
Net cash used in investing activities | (4,551) | (3,684) | (847) |
Cash Flows From Financing Activities: | |||
Proceeds from debt | 12,178 | 11,801 | 8,752 |
Payments of debt | (9,942) | (10,207) | (9,223) |
Payments of financing costs | (24) | (44) | (24) |
Proceeds from the exercise of common stock options | 2 | 3 | 1 |
Common stock repurchased | (817) | (56) | (528) |
Excess tax benefits from share-based payment arrangements | 0 | 0 | 58 |
Net cash provided by (used in) financing activities | 1,397 | 1,497 | (964) |
Effect of foreign exchange rates | (8) | 18 | 3 |
Net (decrease) increase in cash and cash equivalents | (309) | 40 | 133 |
Cash and cash equivalents at beginning of year | 352 | 312 | 179 |
Cash and cash equivalents at end of year | 43 | 352 | 312 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 455 | 357 | 415 |
Cash paid for income taxes, net | $ 71 | $ 205 | $ 99 |
Organization, Description of Bu
Organization, Description of Business and Consolidation | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Description of Business and Consolidation | Organization, Description of Business and Consolidation United Rentals, Inc. ("Holdings") is principally a holding company and conducts its operations primarily through its wholly owned subsidiary, United Rentals (North America), Inc. (“URNA”), and subsidiaries of URNA. Holdings’ primary asset is its sole ownership of all issued and outstanding shares of common stock of URNA. URNA’s various credit agreements and debt instruments place restrictions on its ability to transfer funds to its stockholder. As used in this report, the terms the “Company,” “United Rentals,” “we,” “us,” and “our” refer to United Rentals, Inc. and its subsidiaries, unless otherwise indicated. We rent equipment to a diverse customer base that includes construction and industrial companies, manufacturers, utilities, municipalities, homeowners and others in the United States, Canada and Europe. As discussed in note 4 to the consolidated financial statements, with the recently completed acquisition of BakerCorp International Holdings, Inc. (“BakerCorp”), which added 11 European locations in France, Germany, the United Kingdom and the Netherlands to our branch network, we entered into select European markets. In addition to renting equipment, we sell new and used rental equipment, as well as related contractor supplies, parts and service. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 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. See note 3 to our consolidated financial statements for further detail. Inventory Inventory consists of new equipment, contractor supplies, tools, parts, fuel and related supply items. Inventory is stated at the lower of cost or market. Cost is determined, depending on the type of inventory, using either a specific identification, weighted-average or first-in, first-out method. Rental Equipment Rental equipment, which includes service and delivery vehicles, is recorded at cost and depreciated over the estimated useful life of the equipment using the straight-line method. The range of estimated useful lives for rental equipment is two to 20 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 $14 , $10 and $18 for the years ended December 31, 2018 , 2017 and 2016 , 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 $864 , $714 and $629 for the years ended December 31, 2018 , 2017 and 2016 , 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. Acquisition Accounting We have made a number of acquisitions in the past and may continue to make acquisitions in the future. The assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition. Long-lived assets (principally rental equipment), goodwill and other intangible assets generally represent the largest components of our acquisitions. Rental equipment is valued utilizing either a cost, market or income approach, or a combination of certain of these methods, depending on the asset being valued and the availability of market or income data. The intangible assets that we have acquired are non-compete agreements, customer relationships and trade names and associated trademarks. The estimated fair values of these intangible assets reflect various assumptions about discount rates, revenue growth rates, operating margins, terminal values, useful lives and other prospective financial information. Goodwill is calculated as the excess of the cost of the acquired entity over the net of the fair value of the assets acquired and the liabilities assumed. Non-compete agreements, customer relationships and trade names and associated trademarks are valued based on an excess earnings or income approach based on projected cash flows. Determining the fair value of the assets and liabilities acquired is judgmental in nature and can involve the use of significant estimates and assumptions. The judgments made in determining the estimated fair value assigned to the assets acquired, as well as the estimated life of the assets, can materially impact net income in periods subsequent to the acquisition through depreciation and amortization, and in certain instances through impairment charges, if the asset becomes impaired in the future. As discussed below, we regularly review for impairments. When we make an acquisition, we also acquire other assets and assume liabilities. These other assets and liabilities typically include, but are not limited to, parts inventory, accounts receivable, accounts payable and other working capital items. Because of their short-term nature, the fair values of these other assets and liabilities generally approximate the book values on the acquired entities' balance sheets. Evaluation of Goodwill Impairment Goodwill is tested for impairment annually or more frequently if an event or circumstance indicates that an impairment loss may have been incurred. Application of the goodwill impairment test requires judgment, including: the identification of reporting units; assignment of assets and liabilities to reporting units; assignment of goodwill to reporting units; determination of the fair value of each reporting unit; and an assumption as to the form of the transaction in which the reporting unit would be acquired by a market participant (either a taxable or nontaxable transaction). We estimate the fair value of our reporting units (which are our regions) using a combination of an income approach based on the present value of estimated future cash flows and a market approach based on market price data of shares of our Company and other corporations engaged in similar businesses as well as acquisition multiples paid in recent transactions within our industry (including our own acquisitions). We believe this approach, which utilizes multiple valuation techniques, yields the most appropriate evidence of fair value. 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. As discussed below (see "New Accounting Pronouncements-Simplifying the Test for Goodwill Impairment"), we are currently assessing whether we will early adopt accounting guidance that eliminates the second step from the goodwill impairment test when it becomes effective (for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019). In connection with our goodwill impairment test that was conducted as of October 1, 2017, we bypassed the qualitative assessment for each reporting unit and proceeded directly to the first step of the goodwill impairment test. Our goodwi ll impairment testing as of this date indicated that all of our reporting units had estimated fair values which exceeded their respective carrying amounts by at least 45 percent. In connection with our goodwill impairment test that was conducted as of October 1, 2018, we bypassed the qualitative assessment for each reporting unit and proceeded directly to the first step of the goodwill impairment test. Our goodwill impairment testing as of this date indicated that all of our reporting units, excluding our Fluid Solutions Europe reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 52 percent. As discussed in note 4 to the consolidated financial statements, in July 2018, we completed the acquisition of BakerCorp, which added 11 European locations to our branch network. The European locations are in our Fluid Solutions Europe reporting unit. All of the assets in the Fluid Solutions Europe reporting unit were acquired in the BakerCorp acquisition. The estimated fair value of our Fluid Solutions Europe reporting unit exceeded its carrying amount by 7 percent. As all of the assets in the Fluid Solutions Europe reporting unit were recorded at fair value as of the July 2018 acquisition date, we expected the percentage by which the Fluid Solutions Europe reporting unit’s fair value exceeded its carrying value to be significantly less than the equivalent percentages determined for our other reporting units. Restructuring Charges Costs associated with exit or disposal activities, including lease termination costs and certain employee severance costs associated with restructuring, branch closings or other activities, are recognized at fair value when they are incurred. Other Intangible Assets Other intangible assets consist of non-compete agreements, customer relationships and trade names and associated trademarks. The non-compete agreements are being amortized on a straight-line basis over initial periods of approximately 5 years. The customer relationships are being amortized either using the sum of the years' digits method or on a straight-line basis over initial periods ranging from 5 to 15 years. The trade names and associated trademarks are being amortized using the sum of the years' digits method over initial periods of approximately 5 years. We believe that the amortization methods used reflect the estimated pattern in which the economic benefits will be consumed. Long-Lived Assets Long-lived assets are recorded at the lower of amortized cost or fair value. As part of an ongoing review of the valuation of long-lived assets, we assess the carrying value of such assets if facts and circumstances suggest they may be impaired. If this review indicates the carrying value of such an asset may not be recoverable, as determined by an undiscounted cash flow analysis over the remaining useful life, the carrying value would be reduced to its estimated fair value. Translation of Foreign Currency Assets and liabilities of our foreign subsidiaries that have a functional currency other than U.S. dollars are translated into U.S. dollars using exchange rates at the balance sheet date. Revenues and expenses are translated at average exchange rates effective during the year. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive (loss) income within stockholders’ equity. Revenue Recognition As discussed in note 3 to our consolidated financial statements, in 2018, we adopted updated FASB revenue recognition guidance ("Topic 606"). Topic 606 replaced Topic 605, which was the revenue recognition accounting standard in effect for the years ended December 31, 2017 and 2016. For each of the three years in the period ended December 31, 2018 , we additionally recognized revenue in accordance with Topic 840, which is the lease accounting standard. The discussion below addresses our primary revenue types based on the accounting standard used to determine the accounting. Lease revenues (Topic 840) The accounting for the significant types of revenue that are accounted for under Topic 840 is discussed below. As discussed below (see "New Accounting Pronouncements-Leases"), we will adopt Topic 842, which replaces Topic 840, on January 1, 2019. We have concluded that no significant changes are expected to our revenue accounting upon adoption of Topic 842. Owned equipment rentals: Owned equipment rentals represent revenues from renting equipment that we own. We account for such rentals as operating leases. Re-rent revenue: Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. Revenues from contracts with customers (Topic 606) The accounting for the significant types of revenue that are accounted for under Topic 606 is discussed below. Delivery and pick-up: Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. Sales of rental equipment, new equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is reasonably assured. Service and other revenues primarily represent revenues earned from providing repair and maintenance services on our customers’ fleet (including parts sales). Service revenue is recognized as the services are performed. See note 3 to our consolidated financial statements for further discussion of our revenue accounting. Delivery Expense Equipment rentals include our revenues from fees we charge for equipment delivery. Delivery costs are charged to operations as incurred, and are included in cost of revenues on our consolidated statements of income. Advertising Expense We promote our business through local and national advertising in various media, including television, trade publications, branded sponsorships, yellow pages, the internet, radio and direct mail. Advertising costs are generally expensed as incurred. These costs may include the development costs for branded content and advertising campaigns. Advertising expense, net of the qualified advertising reimbursements discussed below, was immaterial for the years ended December 31, 2018 , 2017 and 2016 . 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 $ 41 , $ 35 and $ 19 for the years ended December 31, 2018 , 2017 and 2016 , 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. The Tax Cuts and Jobs Act (the "Tax Act"), which was enacted in December 2017, had a substantial impact on our income tax benefit for the year ended December 31, 2017. The Tax Act reduced the U.S. federal statutory tax rate from 35 percent to 21 percent and the year ended December 31, 2018 reflects the decreased tax rate. See note 13 to the consolidated financial statements for further detail. We have historically considered the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested, and, accordingly, no taxes have been provided on such earnings. We continue to evaluate our plans for reinvestment or repatriation of unremitted foreign earnings and have not changed our previous indefinite reinvestment determination following the enactment of the Tax Act. We have not repatriated funds to the U.S. to satisfy domestic liquidity needs, nor do we anticipate the need to do so. The Tax Act requires a one-time transition tax for deemed repatriation of accumulated undistributed earnings of certain foreign investments. As of December 31, 2018 , we have computed a transition tax amount payable of $ 62 , of which $ 14 was included in other long-term liabilities on our consolidated balance sheet (we expect to settle the remaining payable amount by applying an overpayment of federal taxes). We regularly review our cash positions and our determination of permanent reinvestment of foreign earnings. If we determine that all or a portion of such foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes, beyond the Tax Act's one-time transition tax. 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 (see note 3 to our consolidated financial statements for further detail). We manage credit risk through credit approvals, credit limits and other monitoring procedures. Stock-Based Compensation We measure stock-based compensation at the grant date based on the fair value of the award and recognize stock-based compensation expense over the requisite service period. Determining the fair value of stock option awards requires judgment, including estimating stock price volatility, 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 recognize forfeitures of stock-based compensation as they occur. We adopted accounting guidance in 2017 that changed the cash flow presentation of excess tax benefits from share-based payment arrangements. For 2017 and 2018, the excess tax benefits from share-based payment arrangements are presented as a component of net cash provided by operating activities, while they are presented as a separate line item for 2016. New Accounting Pronouncements Leases . In March 2016, the FASB issued guidance ("Topic 842") to increase transparency and comparability among organizations by requiring (1) recognition of lease assets and lease liabilities on the balance sheet and (2) disclosure of key information about leasing arrangements. Some changes to the lessor accounting guidance were made to align both of the following: (1) the lessor accounting guidance with certain changes made to the lessee accounting guidance and (2) key aspects of the lessor accounting model with revenue recognition guidance. Topic 842 is effective for fiscal years and interim periods beginning after December 15, 2018. A modified retrospective approach is required for adoption for all leases that exist at or commence after the date of initial application with an option to use certain practical expedients. We expect to use the package of practical expedients that allows us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We additionally expect to use the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. We will adopt this guidance at the adoption date of January 1, 2019, using the transition method that allows us to initially apply Topic 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We do not expect to recognize a material adjustment to retained earnings upon adoption. We are additionally assessing the impact of Topic 842 on our internal controls over financial reporting. As discussed in note 3 to the consolidated financial statements, most of our equipment rental revenues, which accounted for 86 percent of total revenues for the year ended December 31, 2018 , were accounted for under the current lease accounting standard ("Topic 840") through December 31, 2018 and will be accounted for under Topic 842 upon adoption. We have concluded that no significant changes are expected to our revenue accounting upon adoption of Topic 842. See note 3 to the consolidated financial statements for a discussion of our revenue accounting (such discussion addresses our lease revenues). We determine if an arrangement is a lease at inception. We lease real estate and equipment under operating leases. We lease a significant portion of our branch locations, and also lease other premises used for purposes such as district and regional offices and service centers. Our current capital lease obligations consist primarily of vehicle and building leases. The capital leases addressed in note 14 to the consolidated financial statements are expected to be accounted for as finance leases upon adoption of Topic 842, and we do not expect any significant changes to the accounting for such leases upon adoption. Under Topic 842, operating leases result in the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Under Topic 842, operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, upon adoption of Topic 842, we will use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets will also include any lease payments made and exclude lease incentives. Our lease terms may include options to extend or terminate the lease that we are reasonably certain to exercise. Lease expense under Topic 842 will be recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, and we expect to account for the lease and non-lease components as a single lease component under Topic 842. The adoption of Topic 842 will have a material impact on our consolidated balance sheet due to the recognition of the ROU assets and lease liabilities. The adoption of Topic 842 is not expected to have a material impact on our consolidated income statement (as noted above, although a significant portion of our revenue will be accounted for under Topic 842 upon adoption, no significant changes to our revenue accounting are expected upon adoption) or our consolidated cash flow statement. Because of the transition method we will use to adopt Topic 842, Topic 842 will not be applied to periods prior to adoption and the adoption of Topic 842 will have no impact on our previously reported results. The future minimum lease payments for our operating leases as of December 31, 2018 are discussed in note 14 to the consolidated financial statements. The undiscounted total of such payments was $707 . Upon adoption of Topic 842, we expect to recognize operating lease ROU assets and lease liabilities that reflect the present value of these future payments. After the adoption of Topic 842, we will first report the operating lease ROU assets and lease liabilities as of March 31, 2019 based on our lease portfolio as of that date. The components of our historic lease expense and the future lease payments are discussed in note 14 to the consolidated financial statements. The capital leases addressed in note 14 are expected to be accounted for as finance leases upon adoption of Topic 842, and we do not expect any significant changes to the accounting for such leases upon adoption. Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued guidance that will require companies to present assets held at amortized cost and available for sale debt securities net of the amount expected to be collected. The guidance requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectibility. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2019 and early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Different components of the guidance require modified retrospective or prospective adoption. This guidance does not apply to receivables arising from operating leases. As discussed in note 3 to our consolidated financial statements, most of our equipment rental revenue is accounted for as lease revenue (such revenue represented 79 percent of our total revenues for the year ended December 31, 2018 ). We are currently assessing whether we will early adopt this guidance, and the impact on our financial statements, while limited to our non-operating lease receivables, is not currently estimable, as it will depend on market conditions and our forecast expectations upon, and following, adoption. Simplifying the Test for Goodwill Impairment . In January 2017, the FASB issued guidance intended to simplify the subsequent accounting for goodwill acquired in a business combination. Prior guidance required utilizing a two-step process to review goodwill for impairment. A second step was required if there was an indication that an impairment may exist, and the second step required calculating the potential impairment by comparing the implied fair value of the reporting unit's goodwill (as if purchase accounting were performed on the testing date) with the carrying amount of the goodwill. The new guidance eliminates the second step from the goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value (although the loss should not exceed the total amount of goodwill allocated to the reporting unit). The guidance requires prospective adoption and will be effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption of this guidance is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently assessing whether we will early adopt. The guidance is not expected to have a significant impact on our financial statements. Derivatives and Hedging . In August 2017, the FASB issued guidance with the objective of improving the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The guidance is additionally intended to simplify hedge accounting, and no longer requires separate measurement and reporting of hedge ineffectiveness. For cash flow and net investment hedges existing at the date of adoption, entities must apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings. The amended presentation and disclosure guidance is required prospectively. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2018, and we expect to adopt this guidance when effective. Given our currently limited use of derivative instruments, the guidance is not expected to have a significant impact on our financial statements. Guidance Adopted in 2018 Revenue from Contracts with Customers . See note 3 to our consolidated financial statements for a discussion of our revenue recognition accounting following our adoption in 2018 of FASB guidance addressing the principles for recognizing revenue. Statement of Cash Flows. In 2018, we retrospectively adopted guidance that was issued to reduce the diversity in the presentation of certain cash receipts and cash payments presented and classified in the statement of cash flows. The guidance addresses the following specific cash flow issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Adoption of Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” In May 2014, and in subsequent updates, the FASB issued guidance ("Topic 606") to clarify the principles for recognizing revenue. Topic 606 replaced Topic 605, which was the revenue recognition standard in effect through December 31, 2017. Topic 606 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. We adopted Topic 606 on January 1, 2018, using the modified retrospective method. The adoption of Topic 606 did not result in any significant changes to our historic revenue accounting under Topic 605. Results for 2018 are presented under Topic 606, while results for 2017 and 2016 continue to reflect our historic accounting under Topic 605. No cumulative change to retained earnings was required upon adoption of Topic 606. We applied the Topic 606 practical expedient that allows entities to not restate contracts that begin and are completed within the same annual reporting period. No other practical expedients associated with the adoption of Topic 606 were applied. As discussed below, following the adoption of Topic 606, we recognized revenue in accordance with two different accounting standards: 1) Topic 606 and 2) Topic 840 (which addresses lease accounting. As discussed below, we will adopt an update to this standard on January 1, 2019). Under Topic 606, revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account under Topic 606. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services. As reflected below, most of our revenue is accounted for under Topic 840. Our contracts with customers generally do not include multiple performance obligations. Nature of goods and services In the following table, revenue is summarized by type and by the applicable accounting standard. Year Ended December 31, 2018 2017 2016 Topic 840 Topic 606 Total Topic 840 Topic 605 Total Topic 840 Topic 605 Total Revenues: Owned equipment rentals $ 5,946 $ — $ 5,946 $ 4,928 $ — $ 4,928 $ 4,273 $ — $ 4,273 Re-rent revenue 138 — 138 106 — 106 93 — 93 Ancillary and other rental revenues: Delivery and pick-up — 477 477 — 389 389 — 340 340 Other 287 92 379 228 64 292 186 49 235 Total ancillary and other rental revenues 287 569 856 228 453 681 186 389 575 Total equipment rentals 6,371 569 6,940 5,262 453 5,715 4,552 389 4,941 Sales of rental equipment — 664 664 — 550 550 — 496 496 Sales of new equipment — 208 208 — 178 178 — 144 144 Contractor supplies sales — 91 91 — 80 80 — 79 79 Service and other revenues — 144 144 — 118 118 — 102 102 Total revenues $ 6,371 $ 1,676 $ 8,047 $ 5,262 $ 1,379 $ 6,641 $ 4,552 $ 1,210 $ 5,762 Revenues by reportable segment and geographical market are presented in note 5 of the consolidated financial statements using the revenue captions reflected in our consolidated statements of operations. The majority of our revenue is recognized in our general rentals segment and in the U.S. (for the year ended December 31, 2018 , 81 percent and 92 percent of total revenues, respectively). We believe that the disaggregation of our revenue from contracts to customers as reflected above, coupled with the further discussion below and the reportable segment and geographical market disclosures in note 5 , depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Lease revenues (Topic 840) The accounting for the types of revenue that are accounted for under Topic 840 is discussed below. As discussed in note 2 to the consolidated financial statements, we will adopt Topic 842, which will replace Topic 840, on January 1, 2019. We have concluded that no significant changes are expected to our revenue accounting upon adoption of Topic 842. Owned equipment rentals represent our most significant revenue type (they accounted for 74 percent of total revenues for the year ended December 31, 2018 ) and are governed by our standard rental contract. We account for such rentals as operating leases. The lease terms are included in our contracts, and the determination of whether our contracts contain leases generally does not require significant assumptions or judgments. Our lease revenues do not include material amounts of variable payments. Owned equipment rentals: Owned equipment rentals represent revenues from renting equipment that we own. We do not generally provide an option for the lessee to purchase the rented equipment at the end of the lease, and do not generate material revenue from sales of equipment under such options. We recognize revenues from renting equipment on a straight-line basis. Our rental contract periods are hourly, daily, weekly or monthly. By way of example, if a customer were to rent a piece of equipment and the daily, weekly and monthly rental rates for that particular piece were (in actual dollars) $ 100 , $ 300 and $ 900 , respectively, we would recognize revenue of $ 32.14 per day. The daily rate for recognition purposes is calculated by dividing the monthly rate of $ 900 by the monthly term of 28 days. This daily rate assumes that the equipment will be on rent for the full 28 days, as we are unsure of when the customer will return the equipment and therefore unsure of which rental contract period will apply. As part of this straight-line methodology, when the equipment is returned, we recognize as incremental revenue the excess, if any, between the amount the customer is contractually required to pay, which is based on the rental contract period applicable to the actual number of days the equipment was out on rent, over the cumulative amount of revenue recognized to date. In any given accounting period, we will have customers return equipment and be contractually required to pay us more than the cumulative amount of revenue recognized to date under the straight-line methodology. For instance, continuing the above example, if the customer rented the above piece of equipment on December 29 and returned it at the close of business on January 1, we would recognize incremental revenue on January 1 of $ 171.44 (in actual dollars, representing the difference between the amount the customer is contractually required to pay, or $ 300 at the weekly rate, and the cumulative amount recognized to date on a straight-line basis, or $ 128.56 , which represents four days at $ 32.14 per day). We record amounts billed to customers in excess of recognizable revenue as deferred revenue on our balance sheet. We had deferred revenue (associated with both Topic 840 and Topic 606/605) of $56 and $46 as of December 31, 2018 and 2017 , respectively. As noted above, we are unsure of when the customer will return rented equipment. As such, we do not know how much the customer will owe us upon return of the equipment and cannot provide a maturity analysis of future lease payments. Our equipment is generally rented for short periods of time (significantly less than a year). Lessees do not provide residual value guarantees on rented equipment. We expect to derive significant future benefits from our equipment following the end of the rental term. Our rentals are generally short-term in nature, and our equipment is typically rented for the majority of the time that we own it. We manage our rental fleet utilizing a life-cycle approach that focuses on satisfying customer demand and optimizing utilization levels. We use this approach to manage residual value risk upon disposition of our rental equipment. As part of this life-cycle approach, we closely monitor repair and maintenance expense and can anticipate, based on our extensive experience with a large and diverse fleet, the optimum time to dispose of an asset. We generally expect to recognize significant future equipment rental revenue from our equipment following the end of the rental term. Additionally, we recognize revenue from sales of rental equipment when we dispose of the equipment. Re-rent revenue: Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. “Other” equipment rental revenue is primarily comprised of 1) Rental Protection Plan (or "RPP") revenue associated with the damage waiver customers can purchase when they rent our equipment to protect against potential loss or damage, 2) environmental charges associated with the rental of equipment, and 3) charges for rented equipment that is damaged by our customers. Revenues from contracts with customers (Topic 606) The accounting for the types of revenue that are accounted for under Topic 606 is discussed below. Substantially all of our revenues under Topic 606 are recognized at a point-in-time rather than over time. Delivery and pick-up: Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. “Other” equipment rental revenue is primarily comprised of revenues associated with the consumption of fuel by our customers which are recognized when the equipment is returned by the customer (and consumption, if any, can be measured). Sales of rental equipment, new equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is reasonably assured. Service and other revenues primarily represent revenues earned from providing repair and maintenance services on our customers’ fleet (including parts sales). Service revenue is recognized as the services are performed. Receivables and contract assets and liabilities As reflected above, most of our equipment rental revenue is accounted for under Topic 840 (such revenue represented 79 percent of our total revenues for the year ended December 31, 2018 ). The customers that are responsible for the remaining revenue that is accounted for under Topic 606 are generally the same customers that rent our equipment. We manage credit risk associated with our accounts receivables at the customer level. Because the same customers generate the revenues that are accounted for under both Topic 606 and Topic 840, the discussions below on credit risk and our allowances for doubtful accounts address our total revenues from Topic 606 (Topic 605 for 2017 and 2016) and Topic 840. Concentration of credit risk with respect to our receivables is limited because a large number of geographically diverse customers makes up our customer base. Our largest customer accounted for less than one percent of total revenues in each of 2018 , 2017 , and 2016 . Our customer with the largest receivable balance represented approximately one percent of total receivables at December 31, 2018 and 2017 . We manage credit risk through credit approvals, credit limits and other monitoring procedures. Our allowances for doubtful accounts reflect our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience. 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. During the years ended December 31, 2018 , 2017 and 2016 , we recognized expenses of $45 , $40 and $24 , respectively, primarily within selling, general and administrative expenses in our consolidated statements of income, associated with our allowances for doubtful accounts. We do not have material contract assets, or impairment losses associated therewith, or material contract liabilities, associated with contracts with customers. Our contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. We did not recognize material revenue during the year ended December 31, 2018 that was included in the contract liability balance as of the beginning of such period. Performance obligations Most of our Topic 606 revenue is recognized at a point-in-time, rather than over time. Accordingly, in any particular period, we do not generally recognize a significant amount of revenue from performance obligations satisfied (or partially satisfied) in previous periods, and the amount of such revenue recognized during the year ended December 31, 2018 was not material. We also do not expect to recognize material revenue in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2018 . Payment terms Our Topic 606 revenues do not include material amounts of variable consideration. Our payment terms vary by the type and location of our customer and the products or services offered. The time between invoicing and when payment is due is not significant. Our contracts do not generally include a significant financing component. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. See above for a discussion of how we manage credit risk. Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities. Contract costs We do not recognize any assets associated with the incremental costs of obtaining a contract with a customer (for example, a sales commission) that we expect to recover. Most of our revenue is recognized at a point-in-time or over a period of one year or less, and we use the practical expedient that allows us to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. Contract estimates and judgments Our revenues accounted for under Topic 606 generally do not require significant estimates or judgments, primarily for the following reasons: • The transaction price is generally fixed and stated on our contracts; • As noted above, our contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation; • Our revenues do not include material amounts of variable consideration, or result in significant obligations associated with returns, refunds or warranties; and • Most of our revenue is recognized as of a point-in-time and the timing of the satisfaction of the applicable performance obligations is readily determinable. As noted above, our Topic 606 revenue is generally recognized at the time of delivery to, or pick-up by, the customer. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions NES Acquisition In April 2017, we completed the acquisition of NES Rentals Holdings II, Inc. (“NES”). NES was a provider of rental equipment with 73 branches located throughout the eastern half of the U.S., and had approximately 1,100 employees and approximately $ 900 of rental assets at original equipment cost as of December 31, 2016. NES had annual revenues of approximately $ 369 . The acquisition: • Increased our density in strategically important markets, including the East Coast, Gulf States and the Midwest; • Strengthened our relationships with local and strategic accounts in the construction and industrial sectors, which we expect will enhance cross-selling opportunities and drive revenue synergies; and • Created meaningful opportunities for cost synergies in areas such as corporate overhead, operational efficiencies and purchasing. The aggregate consideration paid to holders of NES common stock and options was approximately $ 960 . The acquisition and related fees and expenses were funded through drawings on our senior secured asset-based revolving credit facility (“ABL facility”) and new debt issuances. The following table summarizes the fair values of the assets acquired and liabilities assumed. Accounts receivable, net of allowance for doubtful accounts (1) $ 49 Inventory 4 Rental equipment 571 Property and equipment 48 Intangibles (2) 139 Other assets 7 Total identifiable assets acquired 818 Short-term debt and current maturities of long-term debt (3) (3 ) Current liabilities (33 ) Deferred taxes (15 ) Long-term debt (3) (11 ) Other long-term liabilities (5 ) Total liabilities assumed (67 ) Net identifiable assets acquired 751 Goodwill (4) 209 Net assets acquired $ 960 (1) The fair value of accounts receivables acquired was $ 49 , and the gross contractual amount was $ 53 . We estimated that $ 4 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 $ 138 10 Non-compete agreements 1 1 Total $ 139 (3) The acquired debt reflects capital lease obligations. (4) All of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the acquisition is primarily reflective of NES's going-concern value, the value of NES's assembled workforce, new customer relationships expected to arise from the acquisition, and operational synergies that we expect to achieve that are not associated with the identifiable assets. $ 1 of goodwill is expected to be deductible for income tax purposes. The years ended December 31, 2018 and 2017 include NES acquisition-related costs which are included in “Merger related costs” in our consolidated statements of income. The merger related costs are comprised of financial and legal advisory fees. In addition to the acquisition-related costs reflected in our consolidated statements of income, the debt issuance costs and the original issue premiums associated with the issuance of debt to fund the acquisition are reflected, net of amortization subsequent to the acquisition date, in long-term debt in our consolidated balance sheets. Since the acquisition date, significant amounts of fleet have been moved between URI locations and the acquired NES locations, and it is not practicable to reasonably estimate the amounts of revenue and earnings of NES since the acquisition date. The impact of the NES acquisition on our equipment rentals revenue is primarily reflected in the increase in the volume of OEC on rent of 18.8 percent for the year ended December 31, 2018 (such increase also includes the impact of the acquisitions of Neff Corporation ("Neff"), BakerCorp and Vander Holding Corporation and its subsidiaries (“BlueLine”) discussed below). Neff Acquisition In October 2017, we completed the acquisition of Neff. Neff was a provider of earthmoving, material handling, aerial and other equipment, and had 69 branches located in 14 states, with a concentration in southern geographies. Neff had approximately 1,100 employees and approximately $ 860 of rental assets at original equipment cost as of September 30, 2017. Neff had annual revenues of approximately $ 413 . The acquisition augmented our earthmoving capabilities and efficiencies of scale in key market areas, particularly fast-growing southern geographies, and created opportunities for revenue synergies through the cross-selling of our broader fleet. The aggregate consideration paid to holders of Neff common stock and options was approximately $1.316 billion (including $ 7 of stock consideration associated with Neff stock options and restricted stock units which were converted into United Rentals stock options). The acquisition and related fees and expenses were primarily funded through new debt issuances. The following table summarizes the fair values of the assets acquired and liabilities assumed. Accounts receivable, net of allowance for doubtful accounts (1) $ 72 Inventory 5 Rental equipment 550 Property and equipment 45 Intangibles (customer relationships) (2) 153 Other assets 5 Total identifiable assets acquired 830 Current liabilities (62 ) Deferred taxes (36 ) Other long-term liabilities (3 ) Total liabilities assumed (101 ) Net identifiable assets acquired 729 Goodwill (3) 587 Net assets acquired $ 1,316 (1) The fair value of accounts receivables acquired was $ 72 , and the gross contractual amount was $ 74 . We estimated that $ 2 would be uncollectible. (2) The customer relationships are being amortized over a 10 year life. (3) All of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the acquisition is primarily reflective of Neff's going-concern value, the value of Neff's assembled workforce, new customer relationships expected to arise from the acquisition, and operational synergies that we expect to achieve that are not associated with the identifiable assets. $ 320 of goodwill is expected to be deductible for income tax purposes. The years ended December 31, 2018 and 2017 include Neff acquisition-related costs which are included in “Merger related costs” in our consolidated statements of income. The merger related costs are primarily comprised of financial and legal advisory fees, and also include a termination fee we paid associated with a merger agreement Neff entered into with a prior bidder. In addition to the acquisition-related costs reflected in our consolidated statements of income, the debt issuance costs and the original issue premiums associated with the issuance of debt to fund the acquisition are reflected, net of amortization subsequent to the acquisition date, in long-term debt in our consolidated balance sheets. Since the acquisition date, significant amounts of fleet have been moved between URI locations and the acquired Neff locations, and it is not practicable to reasonably estimate the amounts of revenue and earnings of Neff since the acquisition date. The impact of the Neff acquisition on our equipment rentals revenue is primarily reflected in the increase in the volume of OEC on rent of 18.8 percent for the year ended December 31, 2018 (such increase also includes the impact of the acquisition of NES discussed above and the acquisitions of BakerCorp and BlueLine discussed below). BakerCorp Acquisition In July 2018, we completed the acquisition of BakerCorp. BakerCorp was a leading multinational provider of tank, pump, filtration and trench shoring rental solutions for a broad range of industrial and construction applications. BakerCorp had approximately 950 employees, and its operations were primarily concentrated in the United States and Canada, where it had 46 locations. BakerCorp also had 11 locations in France, Germany, the United Kingdom and the Netherlands. BakerCorp had annual revenues of approximately $ 295 . The acquisition is expected to: • Augment our bundled solutions for fluid storage, transfer and treatment; • Expand our strategic account base; and • Provide a significant opportunity to increase revenue and enhance customer service by cross-selling to our broader customer base. The aggregate consideration paid was approximately $ 720 . The acquisition and related fees and expenses were funded through drawings on our ABL facility. The following table summarizes the fair values of the assets acquired and liabilities assumed. The purchase price allocations for these assets and liabilities are based on preliminary valuations and are subject to change as we obtain additional information during the acquisition measurement period. Accounts receivable, net of allowance for doubtful accounts (1) $ 74 Inventory 5 Rental equipment 268 Property and equipment 25 Intangibles (2) 171 Other assets 4 Total identifiable assets acquired 547 Current liabilities (61 ) Deferred taxes (13 ) Total liabilities assumed (74 ) Net identifiable assets acquired 473 Goodwill (3) 247 Net assets acquired $ 720 (1) The fair value of accounts receivables acquired was $ 74 , and the gross contractual amount was $ 80 . We estimated that $ 6 would be uncollectible. (2) The following table reflects the fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair value Life (years) Customer relationships $ 166 8 Trade names and associated trademarks 5 5 Total $ 171 (3) All of the goodwill was assigned to our trench, power and fluid solutions segment. The level of goodwill that resulted from the acquisition is primarily reflective of BakerCorp's going-concern value, the value of BakerCorp's assembled workforce, new customer relationships expected to arise from the acquisition, and operational synergies that we expect to achieve that are not associated with the identifiable assets. $ 6 of goodwill is expected to be deductible for income tax purposes. The year ended December 31, 2018 includes BakerCorp acquisition-related costs which are included in “Merger related costs” in our condensed consolidated statements of income. The merger related costs are comprised of financial and legal advisory fees. Since the acquisition date, significant amounts of fleet have been moved between URI locations and the acquired BakerCorp locations, and it is not practicable to reasonably estimate the amounts of revenue and earnings of BakerCorp since the acquisition date. The impact of the BakerCorp acquisition on our equipment rentals revenue is primarily reflected in the increase in the volume of OEC on rent of 18.8 percent for the year ended December 31, 2018 (such increase also includes the impact of the acquisition of NES and Neff discussed above and the acquisition of BlueLine discussed below). BlueLine Acquisition In October 2018, we completed the acquisition of BlueLine. BlueLine was one of the ten largest equipment rental companies in North America and served customers in the construction and industrial sectors with a focus on mid-sized and local accounts. BlueLine had 114 locations and over 1,700 employees based in 25 U.S. states, Canada and Puerto Rico. BlueLine had annual revenues of approximately $ 786 . The acquisition is expected to: • Expand our equipment rental capacity in many of the largest metropolitan areas in North America, including both U.S. coasts, the Gulf South and Ontario; • Provide a well-diversified customer base with a balanced mix of commercial construction and industrial accounts; • Add more mid-sized and local accounts to our customer base; and • Provide a significant opportunity to increase revenue and enhance customer service by cross-selling to our broader customer base. The aggregate consideration paid was approximately $ 2.068 billion . The acquisition and related fees and expenses were funded through borrowings under a new $1 billion senior secured term loan credit facility (the “term loan facility”) and the issuance of $1.1 billion principal amount of 6 1 / 2 percent Senior Notes due 2026. The following table summarizes the fair values of the assets acquired and liabilities assumed. The purchase price allocations for these assets and liabilities are based on preliminary valuations and are subject to change as we obtain additional information during the acquisition measurement period. Accounts receivable, net of allowance for doubtful accounts (1) $ 117 Inventory 8 Rental equipment 1,081 Property and equipment 72 Intangibles (customer relationships) (2) 230 Other assets 39 Total identifiable assets acquired 1,547 Short-term debt and current maturities of long-term debt (3) (12 ) Current liabilities (124 ) Deferred taxes (4 ) Long-term debt (3) (25 ) Other long-term liabilities (4 ) Total liabilities assumed (169 ) Net identifiable assets acquired 1,378 Goodwill (4) 690 Net assets acquired $ 2,068 (1) The fair value of accounts receivables acquired was $ 117 , and the gross contractual amount was $ 125 . We estimated that $ 8 would be uncollectible. (2) The customer relationships are being amortized over a 5 year life. (3) The acquired debt reflects capital lease obligations. (4) All of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the acquisition is primarily reflective of BlueLine's going-concern value, the value of BlueLine's assembled workforce, new customer relationships expected to arise from the acquisition, and operational synergies that we expect to achieve that are not associated with the identifiable assets. $ 17 of goodwill is expected to be deductible for income tax purposes. The year ended December 31, 2018 includes BlueLine acquisition-related costs which are included in “Merger related costs” in our condensed consolidated statements of income. The merger related costs are comprised of financial and legal advisory fees. In addition to the acquisition-related costs reflected in our consolidated statements of income, the debt issuance costs associated with the issuance of debt to fund the acquisition are reflected, net of amortization subsequent to the acquisition date, in long-term debt in our consolidated balance sheets. Since the acquisition date, significant amounts of fleet have been moved between URI locations and the acquired BlueLine locations, and it is not practicable to reasonably estimate the amounts of revenue and earnings of BlueLine since the acquisition date. The impact of the BlueLine acquisition on our equipment rentals revenue is primarily reflected in the increase in the volume of OEC on rent of 18.8 percent for the year ended December 31, 2018 (such increase also includes the impact of the acquisitions of NES, Neff and BakerCorp discussed above). Pro forma financial information The pro forma information below gives effect to the NES, Neff, BakerCorp and BlueLine acquisitions as if they had been completed on January 1, 2017 (“the pro forma acquisition date”). The pro forma information is not necessarily indicative of our results of operations had the acquisitions 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 acquisitions, and also does not reflect additional revenue opportunities following the acquisitions. The pro forma information includes adjustments to record the assets and liabilities of NES, Neff, BakerCorp and BlueLine at their respective fair values based on available information and to give effect to the financing for the acquisitions and related transactions. The pro forma adjustments reflected in the table below are subject to change as additional analysis is performed. The acquisition measurement periods for NES and Neff have ended and the values assigned to the NES and Neff assets acquired and liabilities assumed are final. The opening balance sheet values assigned to the BakerCorp and BlueLine assets acquired and liabilities assumed are based on preliminary valuations and are subject to change as we obtain additional information during the acquisition measurement periods. Increases or decreases in the estimated fair values of the net assets acquired may impact our statements of income in future periods. The table below presents unaudited pro forma consolidated income statement information as if NES, Neff, BakerCorp and BlueLine had been included in our consolidated results for the entire periods reflected. NES and Neff are excluded from the 2018 presentation because they were included in our results for the entire year ended December 31, 2018 . Year Ended Year Ended December 31, 2018 December 31, 2017 United Rentals BakerCorp BlueLine Total United Rentals NES Neff BakerCorp BlueLine Total Historic/pro forma revenues $ 8,047 $ 184 $ 665 $ 8,896 $ 6,641 $ 81 $ 312 $ 276 $ 727 $ 8,037 Historic/combined pretax income (loss) 1,476 (84 ) (169 ) 1,223 1,048 (12 ) 38 (69 ) (132 ) 873 Pro forma adjustments to pretax income (loss): Impact of fair value mark-ups/useful life changes on depreciation (1) (8 ) (60 ) (68 ) (9 ) (8 ) (13 ) (72 ) (102 ) Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales (2) — (19 ) (19 ) (1 ) (1 ) — (25 ) (27 ) Intangible asset amortization (3) (18 ) (49 ) (67 ) (6 ) (21 ) (41 ) (77 ) (145 ) Goodwill impairment (4) — — — — — 32 — 32 Interest expense (5) (14 ) (92 ) (106 ) (9 ) (51 ) (19 ) (103 ) (182 ) Elimination of historic interest (6) 30 106 136 12 34 41 154 241 Elimination of merger related costs (7) 67 166 233 17 33 — — 50 Restructuring charges (8) 9 13 22 (3 ) (6 ) (9 ) (13 ) (31 ) Pro forma pretax income $ 1,354 $ 709 (1) Depreciation of rental equipment and non-rental depreciation were adjusted for the fair value mark-ups, and the changes in useful lives and salvage values, of the equipment acquired in the NES, Neff, BakerCorp and BlueLine acquisitions. (2) Cost of rental equipment sales was adjusted for the fair value mark-ups of rental equipment acquired in the NES, Neff and BlueLine acquisitions. BakerCorp did not historically recognize a material amount of rental equipment sales, and accordingly no adjustment was required for BakerCorp. (3) The intangible assets acquired in the NES, Neff, BakerCorp and BlueLine acquisitions were amortized. (4) The goodwill impairment charge that BakerCorp recognized during the year ended December 31, 2017 was eliminated. If the acquisition had occurred as of the pro forma acquisition date, this impairment charge would not have been recognized (instead, we would have tested for goodwill impairment based on the post-acquisition reporting unit structure). (5) As discussed above, we issued debt to partially fund the NES, Neff, BakerCorp and BlueLine acquisitions. Interest expense was adjusted to reflect these changes in our debt portfolio. (6) Historic interest, including losses on repurchase/redemption of debt securities, on debt that is not part of the combined entity was eliminated. (7) Merger related costs primarily comprised of financial and legal advisory fees associated with the NES, Neff, BakerCorp and BlueLine were eliminated as they were assumed to have been recognized prior to the pro forma acquisition date. The merger related costs also include a termination fee we paid associated with a merger agreement Neff entered into with a prior bidder. The adjustment for BakerCorp for the year ended December 31, 2018 includes $ 57 of merger related costs recognized by BakerCorp prior to the acquisition. The adjustment for BlueLine for the year ended December 31, 2018 includes $ 142 of merger related costs recognized by BlueLine prior to the acquisition. (8) We expect to recognize restructuring charges primarily comprised of severance costs and branch closure charges associated with the acquisitions over a period of approximately one year following the acquisition dates, which, for the pro forma presentation, was January 1, 2017. The adjustments above reflect the timing of the actual restructuring charges following the acquisitions (the pro forma restructuring charges above for the year ended December 31, 2017 reflect the actual restructuring charges recognized during year following the acquisitions). The restructuring charges reflected in our consolidated statements of income also include non acquisition-related restructuring charges, as discussed in note 6 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our two reportable segments are i) general rentals and ii) trench, power and fluid solutions. The general rentals segment includes the rental of i) general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, ii) aerial work platforms, such as boom lifts and scissor lifts and iii) general tools and light equipment, such as pressure washers, water pumps and power tools. The general rentals segment reflects the aggregation of 11 geographic regions—Carolinas, Gulf South, Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Mid Central, Midwest, Northeast, Pacific West, South, Southeast and Western Canada—and operates throughout the United States and Canada. 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. The trench, power and fluid solutions segment includes the rental of specialty construction products such as i) trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, ii) power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment and iii) fluid solutions equipment primarily used for fluid containment, transfer and treatment. The trench, power and fluid solutions segment is comprised of the following regions, each of which primarily rents the corresponding equipment type described above: i) the Trench Safety region, ii) the Power and HVAC region, iii) the Fluid Solutions region and iv) the Fluid Solutions Europe region. The trench, power and fluid solutions segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment operates throughout the United States and in Canada and Europe. The following table presents the percentage of equipment rental revenue by equipment type for the years ended December 31, 2018 , 2017 and 2016 : Year Ended December 31, 2018 2017 2016 Primarily rented by our general rentals segment: General construction and industrial equipment 44 % 43 % 43 % Aerial work platforms 28 % 32 % 32 % General tools and light equipment 8 % 7 % 8 % Primarily rented by our trench, power and fluid solutions segment: Power and HVAC equipment 8 % 7 % 7 % Trench safety equipment 6 % 6 % 6 % Fluid solutions equipment 6 % 5 % 4 % 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, 2018 , 2017 and 2016 : General Trench, Total 2018 Equipment rentals $ 5,550 $ 1,390 $ 6,940 Sales of rental equipment 619 45 664 Sales of new equipment 186 22 208 Contractor supplies sales 68 23 91 Service and other revenues 127 17 144 Total revenue 6,550 1,497 8,047 Depreciation and amortization expense 1,410 261 1,671 Equipment rentals gross profit 2,293 670 2,963 Capital expenditures 1,980 311 2,291 Total assets $ 15,597 $ 2,536 $ 18,133 2017 Equipment rentals $ 4,727 $ 988 $ 5,715 Sales of rental equipment 509 41 550 Sales of new equipment 159 19 178 Contractor supplies sales 65 15 80 Service and other revenues 105 13 118 Total revenue 5,565 1,076 6,641 Depreciation and amortization expense 1,188 195 1,383 Equipment rentals gross profit 1,950 490 2,440 Capital expenditures 1,675 214 1,889 Total assets $ 13,351 $ 1,679 $ 15,030 2016 Equipment rentals $ 4,166 $ 775 $ 4,941 Sales of rental equipment 459 37 496 Sales of new equipment 128 16 144 Contractor supplies sales 64 15 79 Service and other revenues 91 11 102 Total revenue 4,908 854 5,762 Depreciation and amortization expense 1,066 179 1,245 Equipment rentals gross profit 1,725 364 2,089 Capital expenditures 1,189 150 1,339 Total assets $ 10,496 $ 1,492 $ 11,988 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 (benefit) for income taxes: Year Ended December 31, 2018 2017 2016 Total equipment rentals gross profit $ 2,963 $ 2,440 $ 2,089 Gross profit from other lines of business 401 329 314 Selling, general and administrative expenses (1,038 ) (903 ) (719 ) Merger related costs (36 ) (50 ) — Restructuring charge (31 ) (50 ) (14 ) Non-rental depreciation and amortization (308 ) (259 ) (255 ) Interest expense, net (481 ) (464 ) (511 ) Other income, net 6 5 5 Income before provision (benefit) for income taxes $ 1,476 $ 1,048 $ 909 We operate in the United States, Canada and Europe. As discussed in note 4 to the consolidated financial statements, in July 2018, we completed the acquisition of BakerCorp, which allowed for our entry into select European markets. Our presence in Europe is limited, and the foreign information in the table below primarily reflects Canada. The following table presents geographic area information for the years ended December 31, 2018 , 2017 and 2016 , except for balance sheet information, which is presented as of December 31, 2018 and 2017 : Domestic Foreign Total 2018 Equipment rentals $ 6,388 $ 552 $ 6,940 Sales of rental equipment 609 55 664 Sales of new equipment 184 24 208 Contractor supplies sales 80 11 91 Service and other revenues 126 18 144 Total revenue 7,387 660 8,047 Rental equipment, net 8,910 690 9,600 Property and equipment, net 559 55 614 Goodwill and other intangibles, net $ 5,665 $ 477 $ 6,142 2017 Equipment rentals $ 5,253 $ 462 $ 5,715 Sales of rental equipment 494 56 550 Sales of new equipment 157 21 178 Contractor supplies sales 70 10 80 Service and other revenues 102 16 118 Total revenue 6,076 565 6,641 Rental equipment, net 7,264 560 7,824 Property and equipment, net 425 42 467 Goodwill and other intangibles, net $ 4,642 $ 315 $ 4,957 2016 Equipment rentals $ 4,524 $ 417 $ 4,941 Sales of rental equipment 444 52 496 Sales of new equipment 129 15 144 Contractor supplies sales 68 11 79 Service and other revenues 87 15 102 Total revenue $ 5,252 $ 510 $ 5,762 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Restructuring charges primarily include severance costs associated with headcount reductions, as well as branch closure charges which principally relate to continuing lease obligations at vacant facilities. We incur severance costs and branch closure charges in the ordinary course of our business. We only include such costs that are part of a restructuring program as restructuring charges. Since the first such restructuring program was initiated in 2008, we have completed three programs and have incurred total restructuring charges of $315 . Closed Restructuring Programs We have three closed restructuring programs. The first was initiated in 2008 in recognition of a challenging economic environment and was completed in 2011. The second was initiated following the April 30, 2012 acquisition of RSC Holdings Inc. ("RSC"), and was completed in 2013. The third was initiated in the fourth quarter of 2015 in response to challenges in our operating environment. In particular, during 2015, we experienced volume and pricing pressure in our general rental business and our Fluid Solutions region associated with upstream oil and gas customers. Additionally, our Lean initiatives did not fully generate the anticipated cost savings due to lower than expected growth. In 2016, we achieved the anticipated run rate savings from the Lean initiatives, and this restructuring program was completed in 2016. 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, 2016: Branch closure charges $ 13 $ 10 $ (7 ) $ 16 Severance costs 3 4 (6 ) 1 Total $ 16 $ 14 $ (13 ) $ 17 Year ended December 31, 2017: Branch closure charges $ 16 $ 2 $ (5 ) $ 13 Severance costs 1 — (1 ) — Total $ 17 $ 2 $ (6 ) $ 13 Year ended December 31, 2018: Branch closure charges $ 13 $ 1 $ (6 ) $ 8 Severance costs — — — — Total $ 13 $ 1 $ (6 ) $ 8 _________________ (1) Reflected in our consolidated statements of income as “Restructuring charge.” The restructuring charges are not allocated to our segments. As of December 31, 2018 , we have incurred total restructuring charges under the closed restructuring programs of $237 , comprised of $163 of branch closure charges and $74 of severance costs. NES/Neff/Project XL Restructuring Program In the second quarter of 2017, we initiated a restructuring program following the closing of the NES acquisition discussed in note 4 to the consolidated financial statements. The restructuring program also includes actions undertaken associated with Project XL, which is a set of eight specific work streams focused on driving profitable growth through revenue opportunities and generating incremental profitability through cost savings across our business, and the Neff acquisition that is discussed in note 4 to the consolidated financial statements. We completed this restructuring program in 2018. The table below provides certain information concerning our restructuring charges under the NES/Neff/Project XL restructuring program: Description Beginning Charged to Payments Ending Year ended December 31, 2017: Branch closure charges $ — $ 9 $ (1 ) $ 8 Severance costs — 39 (27 ) 12 Total $ — $ 48 $ (28 ) $ 20 Year ended December 31, 2018: Branch closure charges $ 8 $ — $ (4 ) $ 4 Severance and other 12 8 (13 ) 7 Total $ 20 $ 8 $ (17 ) $ 11 _________________ (1) Reflected in our consolidated statements of income as “Restructuring charge.” The restructuring charges are not allocated to our segments. As of December 31, 2018 , we have incurred total restructuring charges under the NES/Neff/Project XL restructuring program of $56 , comprised of $9 of branch closure charges and $47 of severance and other costs. BakerCorp/BlueLine Restructuring Program In the third quarter of 2018, we initiated a restructuring program following the closing of the BakerCorp acquisition discussed in note 4 to the consolidated financial statements. The restructuring program also includes actions undertaken associated with the BlueLine acquisition discussed in note 4 to the consolidated financial statements. We expect to complete the restructuring program in 2019. 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 BakerCorp/BlueLine restructuring program: Description Beginning Charged to Payments Ending Year ended December 31, 2018: Branch closure charges $ — $ 4 $ (1 ) $ 3 Severance and other — 18 (9 ) 9 Total $ — $ 22 $ (10 ) $ 12 ________________ (1) |
Rental Equipment
Rental Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Leases, Operating [Abstract] | |
Rental Equipment | Rental Equipment Rental equipment consists of the following: December 31, 2018 2017 Rental equipment $ 13,962 $ 11,571 Less accumulated depreciation (4,362 ) (3,747 ) Rental equipment, net $ 9,600 $ 7,824 For additional detail on the acquisitions of BakerCorp and BlueLine in July 2018 and October 2018, respectively, which accounted for a significant portion of the 2018 increase in rental equipment, see note 4 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: December 31, 2018 2017 Land $ 103 $ 102 Buildings 277 238 Non-rental vehicles 200 112 Machinery and equipment 135 103 Furniture and fixtures 240 204 Leasehold improvements 272 245 1,227 1,004 Less accumulated depreciation and amortization (613 ) (537 ) Property and equipment, net $ 614 $ 467 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 : General rentals Trench, Total Balance at January 1, 2016 (1) $ 2,786 $ 457 $ 3,243 Goodwill related to acquisitions (2) 5 4 9 Foreign currency translation and other adjustments 6 2 8 Balance at December 31, 2016 (1) 2,797 463 3,260 Goodwill related to acquisitions (2) (3) 797 8 805 Foreign currency translation and other adjustments 13 4 17 Balance at December 31, 2017 (1) 3,607 475 4,082 Goodwill related to acquisitions (2) (3) 752 247 999 Foreign currency translation and other adjustments (17 ) (6 ) (23 ) Balance at December 31, 2018 (1) $ 4,342 $ 716 $ 5,058 _________________ (1) The total carrying amount of goodwill for all periods in the table above is reflected net of $1.557 billion of accumulated impairment charges, which were primarily recorded in our general rentals segment. (2) Includes goodwill adjustments for the effect on goodwill of changes to net assets acquired during the measurement period, which were not significant to our previously reported operating results or financial condition. (3) For additional detail on the acquisitions of NES, Neff, BakerCorp and BlueLine in April 2017, October 2017, July 2018 and October 2018, respectively, which accounted for most of the 2017 and 2018 goodwill related to acquisitions, see note 4 to our consolidated financial statements. Other intangible assets were comprised of the following at December 31, 2018 and 2017 : December 31, 2018 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 31 months $ 24 $ 16 $ 8 Customer relationships 7 years $ 2,148 $ 1,076 $ 1,072 Trade names and associated trademarks 5 years $ 5 $ 1 $ 4 December 31, 2017 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 31 months $ 71 $ 62 $ 9 Customer relationships 9 years $ 1,750 $ 884 $ 866 Our other intangibles assets, net at December 31, 2018 include the following assets associated with the acquisitions of BakerCorp and BlueLine discussed in note 4 to our consolidated financial statements. No residual value has been assigned to these assets which are being amortized using the sum of the years' digits method, which we believe best reflects the estimated pattern in which the economic benefits will be consumed. December 31, 2018 Weighted-Average Remaining Net Carrying BakerCorp: Customer relationships 7 years $ 149 Trade names and associated trademarks 5 years $ 4 BlueLine: Customer relationships 5 years $ 217 Amortization expense for other intangible assets was $213 , $173 and $174 for the years ended December 31, 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , estimated amortization expense for other intangible assets for each of the next five years and thereafter was as follows: 2019 $ 268 2020 232 2021 190 2022 149 2023 106 Thereafter 139 Total $ 1,084 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Self-insurance accruals $ 46 $ 42 Accrued compensation and benefit costs 127 128 Property and income taxes payable 103 25 Restructuring reserves (1) 31 33 Interest payable 147 131 Deferred revenue (2) 56 46 National accounts accrual 69 50 Other (3) 98 81 Accrued expenses and other liabilities $ 677 $ 536 _________________ (1) Primarily relates to branch closure charges and severance costs. See note 6 for additional detail. (2) Reflects amounts billed to customers in excess of recognizable revenue. See note 3 for additional detail. (3) Other includes multiple items, none of which are individually significant. Other long-term liabilities consist of the following: December 31, 2018 2017 Self-insurance accruals $ 60 $ 58 Income taxes payable 14 52 Accrued compensation and benefit costs 9 10 Other long-term liabilities $ 83 $ 120 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of December 31, 2018 and 2017 , the amounts of our assets and liabilities that were accounted for at fair value were immaterial. Fair value measurements are categorized in one of the following three levels based on the lowest level input that is significant to the fair value measurement in its entirety: Level 1 —Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 —Observable inputs other than quoted prices in active markets for identical assets 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. Fair Value of Financial Instruments The carrying amounts reported in our consolidated balance sheets for accounts receivable, accounts payable and accrued expenses and other liabilities approximate fair value due to the immediate to short-term maturity of these financial instruments. The fair values of our ABL, accounts receivable securitization and term loan facilities and capital leases approximated their book values as of December 31, 2018 and 2017 . The estimated fair values of our other financial instruments, all of which are categorized in Level 1 of the fair value hierarchy, as of December 31, 2018 and 2017 have been calculated based upon available market information, and were as follows: December 31, 2018 December 31, 2017 Carrying Fair Carrying Fair Senior and senior subordinated notes $ 8,102 $ 7,632 $ 7,008 $ 7,340 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt, net of unamortized original issue premiums and unamortized debt issuance costs, consists of the following: December 31, 2018 2017 Accounts receivable securitization facility expiring 2019 (1) $ 850 $ 695 $3.0 billion ABL facility expiring 2021 (1) 1,685 1,670 Term loan facility expiring 2025 (1) (2) 988 — 4 5 / 8 percent Senior Secured Notes due 2023 994 992 5 3 / 4 percent Senior Notes due 2024 842 841 5 1 / 2 percent Senior Notes due 2025 794 793 4 5 / 8 percent Senior Notes due 2025 741 740 5 7 / 8 percent Senior Notes due 2026 999 998 6 1 / 2 percent Senior Notes due 2026 (2) 1,087 — 5 1 / 2 percent Senior Notes due 2027 991 990 4 7 / 8 percent Senior Notes due 2028 (3) 1,650 1,648 4 7 / 8 percent Senior Notes due 2028 (3) 4 6 Capital leases 122 67 Total debt 11,747 9,440 Less short-term portion (903 ) (723 ) Total long-term debt $ 10,844 $ 8,717 (1) The table below presents financial information associated with our variable rate indebtedness as of and for the year ended December 31, 2018 . We have borrowed the full available amount under the term loan facility. The principal obligations under the term loan facility are required to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent per annum, with the balance due at the maturity of the facility. The average amount of debt outstanding under the term loan facility decreases slightly each quarter due to the requirement to repay a portion of the principal obligation. ABL facility Accounts receivable securitization facility Term loan facility Borrowing capacity, net of letters of credit $ 1,264 $ 125 $ — Letters of credit 45 Interest rate at December 31, 2018 4.0 % 3.3 % 4.3 % Average month-end debt outstanding 1,607 796 999 Weighted-average interest rate on average debt outstanding 3.5 % 2.9 % 4.1 % Maximum month-end debt outstanding 2,189 870 1,000 (2) In 2018, URNA i) entered into a $1 billion senior secured term loan facility and ii) issued $1.1 billion principal amount of 6 1 / 2 percent Senior Notes due 2026. As discussed in note 4 to the consolidated financial statements, the proceeds from the 6 1 / 2 percent Senior Notes and borrowings under the term loan facility were used to finance the acquisition of BlueLine in October 2018. See below for additional detail on the issued debt. (3) URNA separately issued 4 7 / 8 percent Senior Notes in August 2017 and in September 2017. Following the issuances, we consummated an exchange offer pursuant to which most of the 4 7 / 8 percent Senior Notes issued in September 2017 were exchanged for additional notes fungible with the 4 7 / 8 percent Senior Notes issued in August 2017. Short-term debt As of December 31, 2018 , our short-term debt primarily reflects $850 of borrowings under our accounts receivable securitization facility. See the table above for financial information associated with the accounts receivable securitization facility. Accounts receivable securitization facility . In 2018, the accounts receivable securitization facility was amended, primarily to increase the facility size and to extend the maturity date. The amended facility expires on June 29, 2019, has a facility size of $975 , 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, 2018 , there were $1.158 billion 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. The size of the ABL facility was $3.0 billion as of December 31, 2018 . See the table above for financial information associated with the ABL facility. The ABL facility is subject to, among other things, the terms of a borrowing base derived from the value of eligible rental equipment and eligible inventory. The borrowing base is subject to certain reserves and caps customary for financings of this type. All amounts borrowed under the credit agreement must be repaid on or before June 2021. 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. As discussed below (see “Loan Covenants and Compliance”), the only financial maintenance covenant that currently exists in the ABL facility is the fixed charge coverage ratio. As of December 31, 2018 , availability under the ABL facility has exceeded the required threshold and, as a result, this financial maintenance covenant was inapplicable. In addition, the credit agreement contains customary negative covenants applicable to Holdings, URNA and our subsidiaries, including negative covenants that restrict the ability of such entities to, among other things, (i) incur additional indebtedness or engage in certain other types of financing transactions, (ii) allow certain liens to attach to assets, (iii) repurchase, or pay dividends or make certain other restricted payments on, capital stock and certain other securities, (iv) prepay certain indebtedness and (v) make acquisitions and investments. The U.S. dollar borrowings under the credit agreement are secured by substantially all of our assets and substantially all of the assets of certain of our U.S. subsidiaries (other than real property and certain accounts receivable). The U.S. dollar borrowings under the credit agreement are guaranteed by Holdings and by URNA and, subject to certain exceptions, our domestic subsidiaries. Borrowings under the credit agreement by URNA’s Canadian subsidiaries are also secured by substantially all the assets of URNA’s Canadian subsidiaries and supported by guarantees from the Canadian subsidiaries and from Holdings and URNA, and, subject to certain exceptions, our domestic subsidiaries. Under the ABL facility, a change of control (as defined in the credit agreement) constitutes an event of default, entitling our lenders, among other things, to terminate our ABL facility and to require us to repay outstanding borrowings. Term loan facility . In October 2018, Holdings, URNA, and certain of our subsidiaries entered into a $1 billion senior secured term loan facility. See the table above for financial information associated with the term loan facility. The term loan facility is guaranteed by Holdings and the same domestic subsidiaries that guarantee the U.S. dollar borrowings under the ABL facility. In addition, the obligations under the term loan facility are secured by first priority security interests in the same collateral that secures the U.S. dollar borrowings under the ABL facility, on a pari passu basis with the ABL facility. The principal obligations under the term loan facility are to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent per annum, with the balance due at the maturity of the term loan facility. The term loan facility matures on October 31, 2025. Amounts drawn under the term loan facility bear annual interest, at URNA’s option, at either the London interbank offered rate plus a margin of 1.75 percent or at an alternative base rate plus a margin of 0.75 percent. The term loan facility contains customary negative covenants applicable to URNA and its subsidiaries, including negative covenants that restrict the ability of such entities to, among other things, (i) incur additional indebtedness; (ii) incur additional liens; (iii) make dividends and other restricted payments; and (iv) engage in mergers, acquisitions and dispositions. The term loan facility does not include any financial covenants. Under the term loan facility, a change of control (as defined in the credit agreement) constitutes an event of default, entitling our lenders to, among other things, terminate the term loan facility and require us to repay outstanding loans. 4 5 / 8 percent Senior Secured Notes due 2023. 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 the 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 due 2024. 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 approximately $ 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 due 2025. In March 2015, URNA issued $ 800 aggregate principal amount of 5 1 / 2 percent Senior Notes which are due July 15, 2025 (the “2025 5 1 / 2 percent Notes”). The net proceeds from the issuance were approximately $ 792 (after deducting offering expenses). The 2025 5 1 / 2 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 2025 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 2025 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 2025 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. 4 5 / 8 percent Senior Notes due 2025 . In September 2017, URNA issued $ 750 principal amount of 4 5 / 8 percent Senior Notes (the “4 5 / 8 percent Notes”) which are due October 15, 2025. The net proceeds from the issuance were approximately $ 741 (after deducting offering expenses). The 4 5 / 8 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 4 5 / 8 percent Notes may be redeemed on or after October 15, 2020, at specified redemption prices that range from 102.313 percent in 2020, to 100 percent in 2022 and thereafter, in each case, 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) mergers and consolidations; (iii) sales, transfers and other dispositions of assets; (iv) dividends and other distributions, stock repurchases and redemptions and other restricted payments; and (v) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the covenant relating to dividends and other distributions, stock repurchases and redemptions and other restricted payments and the requirements relating to additional subsidiary guarantors will not apply to URNA and its restricted subsidiaries during any period when the 4 5 / 8 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 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 7 / 8 percent Senior Notes due 2026. In May 2016, URNA issued $ 750 aggregate principal amount of 5 7 / 8 percent Senior Notes (the “5 7 / 8 percent Notes”) which are due September 15, 2026. In February 2017, URNA issued $ 250 aggregate principal amount of 5 7 / 8 percent Notes as an add-on to the existing 5 7 / 8 percent Notes, after which the aggregate principal amount of outstanding 5 7 / 8 percent Notes was $1.0 billion . The notes issued in February 2017 have identical terms, and are fungible, with the existing 5 7 / 8 percent Notes. The net proceeds from the issuances were approximately $ 999 (including the original issue premium and after deducting offering expenses). The 5 7 / 8 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 5 7 / 8 percent Notes may be redeemed on or after September 15, 2021, at specified redemption prices that range from 102.938 percent in 2021, to 100 percent in 2024 and thereafter, plus accrued and unpaid interest, if any. The indenture governing the 5 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) additional indebtedness; (iii) mergers, consolidations and acquisitions; (iv) sales, transfers and other dispositions of assets; (v) loans and other investments; (vi) dividends and other distributions, stock repurchases and redemptions and other restricted payments; (vii) restrictions affecting subsidiaries; (viii) transactions with affiliates; and (ix) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 5 7 / 8 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. The carrying value of the 5 7 / 8 percent Notes includes the $ 10 unamortized portion of the original issue premium recognized in conjunction with the February 2017 issuance, which is being amortized through the maturity date in 2026. The effective interest rate on the 5 7 / 8 percent Notes is 5.7 percent. 6 1 / 2 percent Senior Notes due 2026. In October 2018, URNA issued $1.1 billion aggregate principal amount of 6 1 / 2 percent Senior Notes (the “6 1 / 2 percent Notes”) which are due December 15, 2026. The net proceeds from the issuance were approximately $ 1.089 billion (after deducting offering expenses). The 6 1 / 2 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 6 1 / 2 percent Notes may be redeemed on or after December 15, 2021, at specified redemption prices that range from 103.250 percent in 2021, to 100 percent in 2024 and thereafter, in each case, plus accrued and unpaid interest, if any. The indenture governing the 6 1 / 2 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) mergers and consolidations; (iii) sales, transfers and other dispositions of assets; (iv) dividends and other distributions, stock repurchases and redemptions and other restricted payments; and (v) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the covenant relating to dividends and other distributions, stock repurchases and redemptions and other restricted payments and the requirements relating to additional subsidiary guarantors will not apply to URNA and its restricted subsidiaries during any period when the 6 1 / 2 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 6 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. 5 1 / 2 percent Senior Notes due 2027. In November 2016, URNA issued $ 750 aggregate principal amount of 5 1 / 2 percent Senior Notes which are due May 15, 2027 (the “2027 5 1 / 2 percent Notes”). In February 2017, URNA issued $ 250 aggregate principal amount of 2027 5 1 / 2 percent Notes as an add-on to the existing 2027 5 1 / 2 percent Notes, after which the aggregate principal amount of outstanding 2027 5 1 / 2 percent Notes was $1.0 billion . The notes issued in February 2017 have identical terms, and are fungible, with the existing 2027 5 1 / 2 percent Notes. The net proceeds from the issuances were approximately $991 (including the original issue premium and after deducting offering expenses). The 2027 5 1 / 2 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 2027 5 1 / 2 percent Notes may be redeemed on or after May 15, 2022, at specified redemption prices that range from 102.75 percent in 2022, to 100 percent in 2025 and thereafter, plus accrued and unpaid interest, if any. The indenture governing the 2027 5 1 / 2 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) additional indebtedness; (iii) mergers, consolidations and acquisitions; (iv) sales, transfers and other dispositions of assets; (v) loans and other investments; (vi) dividends and other distributions, stock repurchases and redemptions and other restricted payments; (vii) restrictions affecting subsidiaries; (viii) transactions with affiliates; and (ix) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 2027 5 1 / 2 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. The carrying value of the 2027 5 1 / 2 percent Notes includes the $ 3 unamortized portion of the original issue premium recognized in conjunction with the February 2017 issuance, which is being amortized through the maturity date in 2027. The effective interest rate on the 2027 5 1 / 2 percent Notes is 5.5 percent. 4 7 / 8 percent Senior Notes due 2028 . In August 2017, URNA issued $925 principal amount of 4 7 / 8 percent Senior Notes (the “Initial 4 7 / 8 percent Notes”) which are due January 15, 2028. The net proceeds from the issuance were approximately $913 (after deducting offering expenses). The Initial 4 7 / 8 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The Initial 4 7 / 8 percent Notes may be redeemed on or after January 15, 2023, at specified redemption prices that range from 102.438 percent in 2023, to 100 percent in 2026 and thereafter, in each case, plus accrued and unpaid interest, if any. The indenture governing the Initial 4 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) mergers and consolidations; (iii) sales, transfers and other dispositions of assets; (iv) dividends and other distributions, stock repurchases and redemptions and other restricted payments; and (v) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the covenant relating to dividends and other distributions, stock repurchases and redemptions and other restricted payments and the requirements relating to additional subsidiary guarantors will not apply to URNA and its restricted subsidiaries during any period when the Initial 4 7 / 8 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding Initial 4 7 / 8 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. In September 2017, URNA issued $750 principal amount of 4 7 / 8 percent Senior Notes (the “Subsequent 4 7 / 8 percent Notes”) which are due January 15, 2028. The net proceeds from the issuance were approximately $743 (including the original issue premium and after deducting offering expenses). The Subsequent 4 7 / 8 percent Notes represent a separate a distinct series of notes from the Initial 4 7 / 8 percent Notes. The Subsequent 4 7 / 8 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The Subsequent 4 7 / 8 percent Notes may be redeemed on or after January 15, 2023, at specified redemption prices that range from 102.438 percent in 2023, to 100 percent in 2026 and thereafter, in each case, plus accrued and unpaid interest, if any. The indenture governing the Subsequent 4 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) mergers and consolidations; (iii) sales, transfers and other dispositions of assets; (iv) dividends and other distributions, stock repurchases and redemptions and other restricted payments; and (v) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the covenant relating to dividends and other distributions, stock repurchases and redemptions and other restricted payments and the requirements relating to additional subsidiary guarantors will not apply to URNA and its restricted subsidiaries during any period when the Subsequent 4 7 / 8 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding Subsequent 4 7 / 8 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. The effective interest rate on the Subsequent 4 7 / 8 percent Notes is 4.84 percent. In December 2017, we consummated an exchange offer pursuant to which approximately $744 principal amount of Subsequent 4 7 / 8 percent Notes were exchanged for additional Initial 4 7 / 8 percent Notes issued under the indenture governing the Initial 4 7 / 8 percent Notes and fungible with the Initial 4 7 / 8 percent Notes. As of December 31, 2018 , the principal amounts outstanding were $1.669 billion for the Initial 4 7 / 8 percent Notes and $4 for the Subsequent 4 7 / 8 percent Notes. The carrying value of the Initial 4 7 / 8 percent Notes includes $2 of the unamortized original issue premium, which is being amortized through the maturity date in 2028. The effective interest rate on the Initial 4 7 / 8 percent Notes is 4.86 percent. Loan Covenants and Compliance As of December 31, 2018 , we were in compliance with the covenants and other provisions of the ABL, accounts receivable securitization and term loan facilities and the senior notes. Any failure to be in compliance with any material provision or covenant of these agreements could have a material adverse effect on our liquidity and operations. The only financial maintenance 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, 2018 , specified availability under the ABL facility exceeded the required threshold and, as a result, this financial maintenance covenant was inapplicable. Under our accounts receivable securitization facility, we are required, among other things, to maintain certain financial tests relating to: (i) the default ratio, (ii) the delinquency ratio, (iii) the dilution ratio and (iv) days sales outstanding. The accounts receivable securitization facility also requires us to comply with the fixed charge coverage ratio under the ABL facility, to the extent the ratio is applicable under the ABL facility. Maturities Debt maturities (exclusive of any unamortized original issue premiums and unamortized debt issuance costs) for each of the next five years and thereafter at December 31, 2018 are as follows: 2019 $ 903 2020 42 2021 1,733 2022 19 2023 1,011 Thereafter 8,126 Total $ 11,834 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Act was enacted in December 2017. The Tax Act reduced the U.S. federal corporate tax rate from 35 percent to 21 percent, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign earnings. As of December 31, 2018, we have completed our accounting for the tax effects of enactment of the Tax Act. During the year ended December 31, 2017 , we recognized the reasonably estimated (i) effects on our existing deferred tax balances and (ii) one-time transition tax. During the year ended December 31, 2018 , we finalized the accounting for the enactment of the Tax Act. The following table presents the impact of the accounting for the enactment of the Tax Act on our provision (benefit) for income taxes for the years ended December 31, 2018 and 2017 : Year ended December 31, 2018 2017 Revaluation of deferred tax balances (1) $ 1 $ (746 ) One-time transition tax (2) 5 57 Total provision (benefit) for income taxes impact $ 6 $ (689 ) _________________ (1) Reflects the revaluation of our net deferred tax liability based on a U.S. federal tax rate of 21 percent. (2) Reflects a one-time transition tax on our unremitted foreign earnings and profits. See below for further discussion addressing our unremitted foreign earnings and profits. The substantial 2017 impact of the enactment of the Tax Act discussed above is reflected in the tables below. The components of the provision (benefit) for income taxes for each of the three years in the period ended December 31, 2018 are as follows: Year ended December 31, 2018 2017 2016 Current Federal $ 47 $ 190 $ 186 Foreign 18 15 10 State and local 58 30 24 123 235 220 Deferred Federal 243 (580 ) 119 Foreign 3 (2 ) (1 ) State and local 11 49 5 257 (533 ) 123 Total $ 380 $ (298 ) $ 343 A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rates ( 21 percent for the year ended December 31, 2018 and 35 percent for the years ended December 31, 2017 and 2016 ) to the income before provision (benefit) for income taxes for each of the three years in the period ended December 31, 2018 is as follows: Year ended December 31, 2018 2017 2016 Computed tax at statutory tax rate $ 310 $ 367 $ 318 State income taxes, net of federal tax benefit 54 34 21 Non-deductible expenses and other 6 (3 ) 9 Enactment of the Tax Act 6 (689 ) — Foreign taxes 4 (7 ) (5 ) Total $ 380 $ (298 ) $ 343 The components of deferred income tax assets (liabilities) are as follows: December 31, 2018 December 31, 2017 Reserves and allowances $ 126 $ 87 Debt cancellation and other 11 13 Net operating loss and credit carryforwards 435 192 Total deferred tax assets 572 292 Property and equipment (1,976 ) (1,498 ) Intangibles (237 ) (174 ) Valuation allowance (46 ) (39 ) Total deferred tax liability (2,259 ) (1,711 ) Total deferred income tax liability $ (1,687 ) $ (1,419 ) We file income tax returns in the U.S., Canada and Europe. Without exception, we have completed our domestic and international income tax examinations, or the statute of limitations has expired in the respective jurisdictions, for years prior to 2010. For financial reporting purposes, income before provision for income taxes for our foreign subsidiaries was $71 , $48 and $29 for the years ended December 31, 2018 , 2017 and 2016 , respectively. We have historically considered the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested, and, accordingly, no taxes have been provided on such earnings. We continue to evaluate our plans for reinvestment or repatriation of unremitted foreign earnings and have not changed our previous indefinite reinvestment determination following the enactment of the Tax Act. We have not repatriated funds to the U.S. to satisfy domestic liquidity needs, nor do we anticipate the need to do so. The Tax Act requires a one-time transition tax for deemed repatriation of accumulated undistributed earnings of certain foreign investments (as reflected above, as of December 31, 2018 , we have computed a transition tax amount payable of $62 ). If we determine that all or a portion of our foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes, beyond the Tax Act's one-time transition tax. At December 31, 2018 , unremitted earnings of foreign subsidiaries of $651 have been included in our computation of the Tax Act transition tax. We have net operating loss carryforwards (“NOLs”) of $ 1.468 billion for federal income tax purposes that expire from 2022 through 2038, $29 for foreign income tax purposes that expire from 2024 through 2037 and $ 1.180 billion for state income tax purposes that expire from 2018 through 2038. We have recorded valuation allowances against these deferred assets of $46 and $39 as of December 31, 2018 and 2017 , respectively. The valuation allowance balances as of December 31, 2018 and 2017 include full valuation allowances associated with foreign tax credits of $32 and $26 , respectively. In 2018 , the Company utilized $386 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to a number of claims and proceedings that generally arise in the ordinary conduct of our business. These matters include, but are not limited to, general liability claims (including personal injury, product liability, and property and automobile claims), indemnification and guarantee obligations, employee injuries and employment-related claims, self-insurance obligations and contract and real estate matters. Based on advice of counsel and available information, including current status or stage of proceeding, and taking into account accruals included in our consolidated balance sheets for matters where we have established them, we currently believe that any liabilities ultimately resulting from these ordinary course claims and proceedings will not, individually or in the aggregate, have a material adverse effect on our consolidated financial position, results of operations or cash flows. Indemnification The Company indemnifies its officers and directors pursuant to indemnification agreements and may in addition indemnify these individuals as permitted by Delaware law. Operating Leases We lease real estate and 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, 2018 : Real 2019 $ 148 $ 45 2020 125 39 2021 102 30 2022 71 23 2023 43 17 Thereafter 47 17 Total $ 536 $ 171 Our equipment leases are primarily comprised of service and delivery vehicles. Our real estate leases provide for varying terms, including customary escalation clauses. 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. As discussed in note 2 to the consolidated financial statements (see "New Accounting Pronouncements-Leases"), we will adopt a new lease accounting standard on January 1, 2019. Upon adoption of the new standard, our operating leases will result in lease assets and lease liabilities being recognized on the balance sheet. Rent expense under all non-cancelable operating leases totaled $179 , $160 and $149 for the years ended December 31, 2018 , 2017 and 2016 , respectively. Capital Leases Capital lease obligations consist primarily of vehicle, building and equipment leases with periods expiring at various dates through 2028. Capital lease obligations were $ 122 and $ 67 at December 31, 2018 and 2017 , respectively. The following table presents capital lease financial statement information for the years ended December 31, 2018 , 2017 and 2016 , except for balance sheet information, which is presented as of December 31, 2018 and 2017 : 2018 2017 2016 Depreciation of rental equipment $ 22 $ 21 $ 20 Non-rental depreciation and amortization 1 2 3 Rental equipment 257 203 Less accumulated depreciation (86 ) (80 ) Rental equipment, net 171 123 Property and equipment, net: Non-rental vehicles 6 2 Buildings 16 21 Less accumulated depreciation and amortization (12 ) (14 ) Property and equipment, net $ 10 $ 9 Future minimum lease payments for capital leases for each of the next five years and thereafter at December 31, 2018 are as follows: 2019 $ 47 2020 34 2021 33 2022 9 2023 2 Thereafter 6 Total 131 Less amount representing interest (1) (9 ) Capital lease obligations $ 122 (1) The weighted average interest rate on our capital lease obligations as of December 31, 2018 was approximately 4.7 percent . As noted above, we will adopt a new lease accounting standard on January 1, 2019. Upon adoption of the new standard, the capital leases above are expected to be accounted for as finance leases. We do not expect any significant changes to the accounting upon this change in classification. Employee Benefit Plans We currently sponsor three defined contribution 401(k) retirement plans, which are subject to the provisions of the Employee Retirement Income Security Act of 1974. We also sponsor a deferred profit sharing plan and a registered retirement savings plan for the benefit of the full-time employees of our Canadian subsidiaries. Under these plans, we match a percentage of the participants’ contributions up to a specified amount. Company contributions to the plans were $31 , $26 and $23 in the years ended December 31, 2018 , 2017 and 2016 , respectively. Environmental Matters |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 , there were 0.5 million shares of common stock reserved for issuance pursuant to options granted under our stock option plans. As of December 31, 2018 , there were an aggregate of 1.0 million outstanding time and performance-based RSUs and 2.0 million shares available for grants 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 December 31, 2017 549 26.80 Granted — — Exercised (85 ) 23.26 Canceled (1 ) 19.67 Outstanding at December 31, 2018 463 27.47 Exercisable at December 31, 2018 433 $ 25.38 The following table presents information associated with stock options as of December 31, 2018 and 2017 , and for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 Intrinsic value of options outstanding as of December 31 $ 35 $ 80 Intrinsic value of options exercisable as of December 31 33 72 Intrinsic value of options exercised 13 6 4 Weighted-average grant date fair value per option $ — $ 84.60 $ — In addition to stock options, the Company issues time-based and performance-based RSUs to certain officers and key executives under various equity incentive plans. The RSUs automatically convert to shares of common stock on a one -for-one basis as the awards vest. The time-based RSUs typically vest over a three year vesting period beginning 12 months from the grant date and thereafter annually on the anniversary of the grant date. The performance-based RSUs vest based on the achievement of the performance conditions during the applicable performance periods (currently the calendar year). There were 428 thousand shares of common stock issued upon vesting of RSUs during 2018 , net of 280 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, 2018 2017 2016 RSUs granted 566 809 901 Weighted-average grant date price per unit $ 175.79 $ 130.96 $ 60.55 As of December 31, 2018 , the total pretax compensation cost not yet recognized by the Company with regard to unvested RSUs was $ 42 . The weighted-average period over which this compensation cost is expected to be recognized is 1.9 years. A summary of RSU activity for the year ended December 31, 2018 follows (RSUs in thousands): Stock Units Weighted-Average Nonvested as of December 31, 2017 756 $ 94.07 Granted 566 175.79 Vested (638 ) 141.89 Forfeited (35 ) 132.14 Nonvested as of December 31, 2018 649 $ 116.26 The total fair value of RSUs vested during the fiscal years ended December 31, 2018 , 2017 and 2016 was $ 114 , $ 101 , and $ 39 , respectively. Dividend Policy . Holdings has not paid dividends on its common stock since inception. The payment of any future dividends or the authorization of stock repurchases or other recapitalizations will be determined by our Board of Directors in light of conditions then existing, including earnings, financial condition and capital requirements, financing agreements, business conditions, stock price and other factors. The terms of certain agreements governing our outstanding indebtedness contain certain limitations on our ability to move operating cash flows to Holdings and/or to pay dividends on, or effect repurchases of, our common stock. In addition, under Delaware law, dividends may only be paid out of surplus or current or prior year’s net profits. Stockholders’ Rights Plan. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) First Second Third Fourth Full For the year ended December 31, 2018 (1): Total revenues $ 1,734 $ 1,891 $ 2,116 $ 2,306 $ 8,047 Gross profit 646 782 938 998 3,364 Operating income 340 470 578 563 1,951 Net income (1) 183 270 333 310 1,096 Earnings per share—basic 2.18 3.22 4.05 3.84 13.26 Earnings per share—diluted (3) 2.15 3.20 4.01 3.80 13.12 For the year ended December 31, 2017 (2): Total revenues $ 1,356 $ 1,597 $ 1,766 $ 1,922 $ 6,641 Gross profit 514 655 773 827 2,769 Operating income 257 340 448 462 1,507 Net income (2) 109 141 199 897 1,346 Earnings per share—basic 1.29 1.67 2.36 10.60 15.91 Earnings per share—diluted (3) 1.27 1.65 2.33 10.45 15.73 (1) As discussed in note 13 to our consolidated financial statements, the Tax Act was enacted in December 2017. The Tax Act reduced the U.S. federal corporate tax rate from 35 percent to 21 percent, and net income for 2018 reflects the decreased tax rate. The fourth quarter of 2018 includes $ 22 of merger related costs and $ 16 of restructuring charges primarily associated with the BakerCorp and BlueLine acquisitions discussed in note 4 to our consolidated financial statements. (2) Net income for the fourth quarter and full year 2017 includes a benefit of $ 689 , or $ 8.03 and $ 8.05 per diluted share for the fourth quarter and full year 2017, respectively, associated with the enactment of the Tax Act discussed further in note 13 to our consolidated financial statements. The fourth quarter of 2017 includes $ 18 of merger related costs and $ 22 of restructuring charges primarily associated with the NES and Neff acquisitions discussed in note 4 to our consolidated financial statements. Additionally, in the fourth quarter of 2017, we redeemed the remaining $ 225 principal amount of our 7 5 / 8 percent Senior Notes due 2022. Upon the redemption of these notes, we recognized a loss of $ 11 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the redeemed notes. The fourth quarter of 2017 also reflects a year-over-year increase of $ 11 in stock compensation expense primarily due to the impact of increased revenue, improved profitability, and increases in our stock price and in the volume of stock awards. (3) Diluted earnings per share includes the after-tax impacts of the following: First Second Third Fourth Full For the year ended December 31, 2018: Merger related costs (4) $ (0.01 ) $ (0.02 ) $ (0.09 ) $ (0.21 ) $ (0.32 ) Merger related intangible asset amortization (5) (0.39 ) (0.37 ) (0.42 ) (0.58 ) (1.76 ) Impact on depreciation related to acquired fleet and property and equipment (6) (0.09 ) (0.08 ) (0.02 ) — (0.19 ) Impact of the fair value mark-up of acquired fleet (7) (0.21 ) (0.15 ) (0.11 ) (0.11 ) (0.59 ) Restructuring charge (8) (0.02 ) (0.03 ) (0.09 ) (0.15 ) (0.28 ) For the year ended December 31, 2017: Merger related costs (4) $ (0.02 ) $ (0.09 ) $ (0.12 ) $ (0.13 ) $ (0.36 ) Merger related intangible asset amortization (5) (0.28 ) (0.30 ) (0.27 ) (0.32 ) (1.15 ) Impact on depreciation related to acquired fleet and property and equipment (6) — 0.03 (0.07 ) (0.01 ) (0.05 ) Impact of the fair value mark-up of acquired fleet (7) (0.06 ) (0.13 ) (0.17 ) (0.23 ) (0.59 ) Restructuring charge (8) — (0.14 ) (0.07 ) (0.15 ) (0.36 ) Asset impairment charge (9) — — — — (0.01 ) Loss on extinguishment of debt securities and amendment of ABL facility — (0.09 ) (0.22 ) (0.08 ) (0.39 ) (4) This reflects transaction costs associated with the NES, Neff, BakerCorp and BlueLine acquisitions discussed in note 4 to our consolidated financial statements. (5) This reflects the amortization of the intangible assets acquired in the RSC, National Pump, NES, Neff, BakerCorp and BlueLine acquisitions. (6) This reflects the impact of extending the useful lives of equipment acquired in the RSC, NES, Neff, BakerCorp and BlueLine acquisitions, net of the impact of additional depreciation associated with the fair value mark-up of such equipment. (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, NES, Neff and BlueLine acquisitions and subsequently sold. (8) As discussed in note 6 to our consolidated financial statements, this primarily reflects severance costs and branch closure charges associated with our restructuring programs. (9) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
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. Net income and earnings per share for 2017 include the significant impact of the enactment of the Tax Act discussed further in note 13 to the consolidated financial statements. Net income and earnings per share for 2018 reflect a reduction in the U.S. federal statutory tax rate from 35 percent to 21 percent following enactment of the Tax Act. The following table sets forth the computation of basic and diluted earnings per share (shares in thousands): Year Ended December 31, 2018 2017 2016 Numerator: Net income available to common stockholders $ 1,096 $ 1,346 $ 566 Denominator: Denominator for basic earnings per share—weighted-average common shares 82,652 84,599 87,217 Effect of dilutive securities: Employee stock options and warrants 379 403 277 Restricted stock units 499 560 281 Denominator for diluted earnings per share—adjusted weighted-average common shares 83,530 85,562 87,775 Basic earnings per share $ 13.26 $ 15.91 $ 6.49 Diluted earnings per share $ 13.12 $ 15.73 $ 6.45 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information of Guarantor Subsidiaries | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Information of Guarantor Subsidiaries | Condensed Consolidating Financial Information of Guarantor Subsidiaries URNA is 100 percent owned by Holdings (“Parent”) and has certain outstanding indebtedness that is guaranteed by both Parent and, with the exception of its U.S. special purpose vehicle which holds receivable assets relating to the Company’s accounts receivable securitization facility (the “SPV”), all of URNA’s U.S. subsidiaries (the “guarantor subsidiaries”). Other than the guarantee by certain Canadian subsidiaries of URNA's indebtedness under the ABL facility, none of URNA’s indebtedness is guaranteed by URNA's foreign subsidiaries or the SPV (together, the “non-guarantor subsidiaries”). The receivable assets owned by the SPV have been sold or contributed by URNA to the SPV and are not available to satisfy the obligations of URNA or Parent’s other subsidiaries. The guarantor subsidiaries are all 100 percent -owned and the guarantees are made on a joint and several basis. The guarantees are not full and unconditional because a guarantor subsidiary can be automatically released and relieved of its obligations under certain circumstances, including sale of the guarantor subsidiary, the sale of all or substantially all of the guarantor subsidiary's assets, the requirements for legal defeasance or covenant defeasance under the applicable indenture being met, designating the guarantor subsidiary as an unrestricted subsidiary for purposes of the applicable covenants or, other than with respect to the guarantees of the 5 3 / 4 percent Senior Notes due 2024, the notes being rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA. The guarantees are also subject to subordination provisions (to the same extent that the obligations of the issuer under the relevant notes are subordinated to other debt of the issuer) and to a standard limitation which provides that the maximum amount guaranteed by each guarantor will not exceed the maximum amount that can be guaranteed without making the guarantee void under fraudulent conveyance laws. Based on our understanding of Rule 3-10 of Regulation S-X ("Rule 3-10"), we believe that the guarantees of the guarantor subsidiaries comply with the conditions set forth in Rule 3-10 and therefore continue to utilize Rule 3-10 to present condensed consolidating financial information for Holdings, URNA, the guarantor subsidiaries and the non-guarantor subsidiaries. Separate consolidated financial statements of the guarantor subsidiaries have not been presented because management believes that such information would not be material to investors. However, condensed consolidating financial information is presented. URNA covenants in the ABL facility, accounts receivable securitization facility, term loan 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, 2018 , the amount available for distribution under the most restrictive of these covenants was $ 583 . The Company’s total available capacity for making share repurchases and dividend payments includes the intercompany receivable balance of Parent. As of December 31, 2018 , 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 $ 2.117 billion . The condensed consolidating financial information of Parent and its subsidiaries is as follows: CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total ASSETS Cash and cash equivalents $ — $ 1 $ — $ 42 $ — $ — $ 43 Accounts receivable, net — — — 159 1,386 — 1,545 Intercompany receivable (payable) 1,534 (1,423 ) (96 ) (15 ) — — — Inventory — 96 — 13 — — 109 Prepaid expenses and other assets — 60 — 4 — — 64 Total current assets 1,534 (1,266 ) (96 ) 203 1,386 — 1,761 Rental equipment, net — 8,910 — 690 — — 9,600 Property and equipment, net 57 462 40 55 — — 614 Investments in subsidiaries 1,826 1,646 980 — — (4,452 ) — Goodwill — 4,661 — 397 — — 5,058 Other intangibles, net — 1,004 — 80 — — 1,084 Other long-term assets 9 7 — — — — 16 Total assets $ 3,426 $ 15,424 $ 924 $ 1,425 $ 1,386 $ (4,452 ) $ 18,133 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 1 $ 50 $ — $ 2 $ 850 $ — $ 903 Accounts payable — 481 — 55 — — 536 Accrued expenses and other liabilities — 619 14 42 2 — 677 Total current liabilities 1 1,150 14 99 852 — 2,116 Long-term debt — 10,778 9 57 — — 10,844 Deferred taxes 22 1,587 — 78 — — 1,687 Other long-term liabilities — 83 — — — — 83 Total liabilities 23 13,598 23 234 852 — 14,730 Total stockholders’ equity (deficit) 3,403 1,826 901 1,191 534 (4,452 ) 3,403 Total liabilities and stockholders’ equity (deficit) $ 3,426 $ 15,424 $ 924 $ 1,425 $ 1,386 $ (4,452 ) $ 18,133 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2017 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total ASSETS Cash and cash equivalents $ — $ 23 $ — $ 329 $ — $ — $ 352 Accounts receivable, net — 56 — 119 1,058 — 1,233 Intercompany receivable (payable) 887 (677 ) (198 ) (124 ) — 112 — Inventory — 68 — 7 — — 75 Prepaid expenses and other assets 4 219 111 2 — (224 ) 112 Total current assets 891 (311 ) (87 ) 333 1,058 (112 ) 1,772 Rental equipment, net — 7,264 — 560 — — 7,824 Property and equipment, net 41 352 32 42 — — 467 Investments in subsidiaries 2,194 1,148 1,087 — — (4,429 ) — Goodwill — 3,815 — 267 — — 4,082 Other intangibles, net — 827 — 48 — — 875 Other long-term assets 3 7 — — — — 10 Total assets $ 3,129 $ 13,102 $ 1,032 $ 1,250 $ 1,058 $ (4,541 ) $ 15,030 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 1 $ 25 $ — $ 2 $ 695 $ — $ 723 Accounts payable — 366 — 43 — — 409 Accrued expenses and other liabilities — 477 17 41 1 — 536 Total current liabilities 1 868 17 86 696 — 1,668 Long-term debt 1 8,596 117 3 — — 8,717 Deferred taxes 21 1,324 — 74 — — 1,419 Other long-term liabilities — 120 — — — — 120 Total liabilities 23 10,908 134 163 696 — 11,924 Total stockholders’ equity (deficit) 3,106 2,194 898 1,087 362 (4,541 ) 3,106 Total liabilities and stockholders’ equity (deficit) $ 3,129 $ 13,102 $ 1,032 $ 1,250 $ 1,058 $ (4,541 ) $ 15,030 CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2018 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Revenues: Equipment rentals $ — $ 6,388 $ — $ 552 $ — $ — $ 6,940 Sales of rental equipment — 609 — 55 — — 664 Sales of new equipment — 184 — 24 — — 208 Contractor supplies sales — 80 — 11 — — 91 Service and other revenues — 126 — 18 — — 144 Total revenues — 7,387 — 660 — — 8,047 Cost of revenues: Cost of equipment rentals, excluding depreciation — 2,370 — 244 — — 2,614 Depreciation of rental equipment — 1,258 — 105 — — 1,363 Cost of rental equipment sales — 358 — 28 — — 386 Cost of new equipment sales — 159 — 20 — — 179 Cost of contractor supplies sales — 52 — 8 — — 60 Cost of service and other revenues — 71 — 10 — — 81 Total cost of revenues — 4,268 — 415 — — 4,683 Gross profit — 3,119 — 245 — — 3,364 Selling, general and administrative expenses 25 860 — 96 57 — 1,038 Merger related costs — 36 — — — — 36 Restructuring charge — 29 — 2 — — 31 Non-rental depreciation and amortization 17 266 — 25 — — 308 Operating (loss) income (42 ) 1,928 — 122 (57 ) — 1,951 Interest (income) expense, net (39 ) 497 — — 24 (1 ) 481 Other (income) expense, net (657 ) 742 — 51 (142 ) — (6 ) Income before provision for income taxes 654 689 — 71 61 1 1,476 Provision for income taxes 164 181 — 20 15 — 380 Income before equity in net earnings (loss) of subsidiaries 490 508 — 51 46 1 1,096 Equity in net earnings (loss) of subsidiaries 606 98 47 — — (751 ) — Net income (loss) 1,096 606 47 51 46 (750 ) 1,096 Other comprehensive (loss) income (86 ) (86 ) (82 ) (105 ) — 273 (86 ) Comprehensive income (loss) $ 1,010 $ 520 $ (35 ) $ (54 ) $ 46 $ (477 ) $ 1,010 CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2017 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Revenues: Equipment rentals $ — $ 5,253 $ — $ 462 $ — $ — $ 5,715 Sales of rental equipment — 494 — 56 — — 550 Sales of new equipment — 157 — 21 — — 178 Contractor supplies sales — 70 — 10 — — 80 Service and other revenues — 102 — 16 — — 118 Total revenues — 6,076 — 565 — — 6,641 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,933 — 218 — — 2,151 Depreciation of rental equipment — 1,033 — 91 — — 1,124 Cost of rental equipment sales — 302 — 28 — — 330 Cost of new equipment sales — 134 — 18 — — 152 Cost of contractor supplies sales — 49 — 7 — — 56 Cost of service and other revenues — 51 — 8 — — 59 Total cost of revenues — 3,502 — 370 — — 3,872 Gross profit — 2,574 — 195 — — 2,769 Selling, general and administrative expenses 103 682 — 80 38 — 903 Merger related costs — 50 — — — — 50 Restructuring charge — 49 — 1 — — 50 Non-rental depreciation and amortization 15 223 — 21 — — 259 Operating (loss) income (118 ) 1,570 — 93 (38 ) — 1,507 Interest (income) expense, net (15 ) 469 3 — 12 (5 ) 464 Other (income) expense, net (543 ) 596 — 45 (103 ) — (5 ) Income (loss) before provision (benefit) for income taxes 440 505 (3 ) 48 53 5 1,048 Provision (benefit) for income taxes 144 (469 ) — 12 15 — (298 ) Income (loss) before equity in net earnings (loss) of subsidiaries 296 974 (3 ) 36 38 5 1,346 Equity in net earnings (loss) of subsidiaries 1,050 76 36 — — (1,162 ) — Net income (loss) 1,346 1,050 33 36 38 (1,157 ) 1,346 Other comprehensive income (loss) 67 67 67 55 — (189 ) 67 Comprehensive income (loss) $ 1,413 $ 1,117 $ 100 $ 91 $ 38 $ (1,346 ) $ 1,413 CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2016 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Revenues: Equipment rentals $ — $ 4,524 $ — $ 417 $ — $ — $ 4,941 Sales of rental equipment — 444 — 52 — — 496 Sales of new equipment — 129 — 15 — — 144 Contractor supplies sales — 68 — 11 — — 79 Service and other revenues — 87 — 15 — — 102 Total revenues — 5,252 — 510 — — 5,762 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,669 — 193 — — 1,862 Depreciation of rental equipment — 900 — 90 — — 990 Cost of rental equipment sales — 265 — 27 — — 292 Cost of new equipment sales — 107 — 12 — — 119 Cost of contractor supplies sales — 47 — 8 — — 55 Cost of service and other revenues — 35 — 6 — — 41 Total cost of revenues — 3,023 — 336 — — 3,359 Gross profit — 2,229 — 174 — — 2,403 Selling, general and administrative expenses 43 579 — 72 25 — 719 Restructuring charge — 7 — 7 — — 14 Non-rental depreciation and amortization 15 216 — 24 — — 255 Operating (loss) income (58 ) 1,427 — 71 (25 ) — 1,415 Interest (income) expense, net (6 ) 509 3 2 8 (5 ) 511 Other (income) expense, net (471 ) 521 — 40 (95 ) — (5 ) Income (loss) before provision for income taxes 419 397 (3 ) 29 62 5 909 Provision for income taxes 154 157 — 8 24 — 343 Income (loss) before equity in net earnings (loss) of subsidiaries 265 240 (3 ) 21 38 5 566 Equity in net earnings (loss) of subsidiaries 301 61 21 — — (383 ) — Net income (loss) 566 301 18 21 38 (378 ) 566 Other comprehensive income (loss) 32 32 28 22 — (82 ) 32 Comprehensive income (loss) $ 598 $ 333 $ 46 $ 43 $ 38 $ (460 ) $ 598 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Year Ended December 31, 2018 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Net cash provided by (used in) operating activities $ 36 $ 3,116 $ (1 ) $ (16 ) $ (282 ) $ — $ 2,853 Net cash used in investing activities (36 ) (4,308 ) — (207 ) — — (4,551 ) Net cash provided by (used in) financing activities — 1,170 1 (56 ) 282 — 1,397 Effect of foreign exchange rates — — — (8 ) — — (8 ) Net decrease in cash and cash equivalents — (22 ) — (287 ) — — (309 ) Cash and cash equivalents at beginning of period — 23 — 329 — — 352 Cash and cash equivalents at end of period $ — $ 1 $ — $ 42 $ — $ — $ 43 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Year Ended December 31, 2017 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Net cash provided by (used in) operating activities $ 21 $ 2,291 $ (3 ) $ 132 $ (232 ) $ — $ 2,209 Net cash used in investing activities (21 ) (3,554 ) — (109 ) — — (3,684 ) Net cash provided by (used in) financing activities — 1,265 3 (3 ) 232 — 1,497 Effect of foreign exchange rates — — — 18 — — 18 Net increase in cash and cash equivalents — 2 — 38 — — 40 Cash and cash equivalents at beginning of period — 21 — 291 — — 312 Cash and cash equivalents at end of period $ — $ 23 $ — $ 329 $ — $ — $ 352 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Year Ended December 31, 2016 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Net cash provided by (used in) operating activities $ 9 $ 1,762 $ (3 ) $ 136 $ 37 $ — $ 1,941 Net cash used in investing activities (9 ) (832 ) — (6 ) — — (847 ) Net cash (used in) provided by financing activities — (927 ) 3 (3 ) (37 ) — (964 ) Effect of foreign exchange rate — — — 3 — — 3 Net increase in cash and cash equivalents — 3 — 130 — — 133 Cash and cash equivalents at beginning of period — 18 — 161 — — 179 Cash and cash equivalents at end of period $ — $ 21 $ — $ 291 $ — $ — $ 312 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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 Acquired Charged to Deductions Balance Year ended December 31, 2018: Allowance for doubtful accounts $ 68 $ 14 $ 45 $ 34 (a) $ 93 Reserve for obsolescence and shrinkage 7 1 26 29 (b) 5 Self-insurance reserve 100 5 144 143 (c) 106 Year ended December 31, 2017: Allowance for doubtful accounts $ 54 $ 6 $ 40 $ 32 (a) $ 68 Reserve for obsolescence and shrinkage 3 2 20 18 (b) 7 Self-insurance reserve 94 6 122 122 (c) 100 Year ended December 31, 2016: Allowance for doubtful accounts $ 55 $ — $ 24 $ 25 (a) $ 54 Reserve for obsolescence and shrinkage 4 — 17 18 (b) 3 Self-insurance reserve 90 — 108 104 (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) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 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 | 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 20 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 $14 , $10 and $18 for the years ended December 31, 2018 , 2017 and 2016 |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. The range of estimated useful lives for property and equipment is two to 39 |
Acquisition Accounting | Acquisition Accounting We have made a number of acquisitions in the past and may continue to make acquisitions in the future. The assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition. Long-lived assets (principally rental equipment), goodwill and other intangible assets generally represent the largest components of our acquisitions. Rental equipment is valued utilizing either a cost, market or income approach, or a combination of certain of these methods, depending on the asset being valued and the availability of market or income data. The intangible assets that we have acquired are non-compete agreements, customer relationships and trade names and associated trademarks. The estimated fair values of these intangible assets reflect various assumptions about discount rates, revenue growth rates, operating margins, terminal values, useful lives and other prospective financial information. Goodwill is calculated as the excess of the cost of the acquired entity over the net of the fair value of the assets acquired and the liabilities assumed. Non-compete agreements, customer relationships and trade names and associated trademarks are valued based on an excess earnings or income approach based on projected cash flows. Determining the fair value of the assets and liabilities acquired is judgmental in nature and can involve the use of significant estimates and assumptions. The judgments made in determining the estimated fair value assigned to the assets acquired, as well as the estimated life of the assets, can materially impact net income in periods subsequent to the acquisition through depreciation and amortization, and in certain instances through impairment charges, if the asset becomes impaired in the future. As discussed below, we regularly review for impairments. |
Evaluation of Goodwill Impairment | Evaluation of Goodwill Impairment Goodwill is tested for impairment annually or more frequently if an event or circumstance indicates that an impairment loss may have been incurred. Application of the goodwill impairment test requires judgment, including: the identification of reporting units; assignment of assets and liabilities to reporting units; assignment of goodwill to reporting units; determination of the fair value of each reporting unit; and an assumption as to the form of the transaction in which the reporting unit would be acquired by a market participant (either a taxable or nontaxable transaction). We estimate the fair value of our reporting units (which are our regions) using a combination of an income approach based on the present value of estimated future cash flows and a market approach based on market price data of shares of our Company and other corporations engaged in similar businesses as well as acquisition multiples paid in recent transactions within our industry (including our own acquisitions). We believe this approach, which utilizes multiple valuation techniques, yields the most appropriate evidence of fair value. 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. |
Restructuring Charges | Restructuring ChargesCosts associated with exit or disposal activities, including lease termination costs and certain employee severance costs associated with restructuring, branch closings or other activities, are recognized at fair value when they are incurred. |
Other Intangible Assets | Other Intangible Assets Other intangible assets consist of non-compete agreements, customer relationships and trade names and associated trademarks. The non-compete agreements are being amortized on a straight-line basis over initial periods of approximately 5 years. The customer relationships are being amortized either using the sum of the years' digits method or on a straight-line basis over initial periods ranging from 5 to 15 years. The trade names and associated trademarks are being amortized using the sum of the years' digits method over initial periods of approximately 5 |
Long-Lived Assets | Long-Lived Assets Long-lived assets are recorded at the lower of amortized cost or fair value. As part of an ongoing review of the valuation of long-lived assets, we assess the carrying value of such assets if facts and circumstances suggest they may be impaired. If this review indicates the carrying value of such an asset may not be recoverable, as determined by an undiscounted cash flow analysis over the remaining useful life, the carrying value would be reduced to its estimated fair value. |
Translation of Foreign Currency | Translation of Foreign Currency Assets and liabilities of our foreign subsidiaries that have a functional currency other than U.S. dollars are translated into U.S. dollars using exchange rates at the balance sheet date. Revenues and expenses are translated at average exchange rates effective during the year. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive (loss) income within stockholders’ equity. |
Revenue Recognition | 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.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. Revenue Recognition As discussed in note 3 to our consolidated financial statements, in 2018, we adopted updated FASB revenue recognition guidance ("Topic 606"). Topic 606 replaced Topic 605, which was the revenue recognition accounting standard in effect for the years ended December 31, 2017 and 2016. For each of the three years in the period ended December 31, 2018 , we additionally recognized revenue in accordance with Topic 840, which is the lease accounting standard. The discussion below addresses our primary revenue types based on the accounting standard used to determine the accounting. Lease revenues (Topic 840) The accounting for the significant types of revenue that are accounted for under Topic 840 is discussed below. As discussed below (see "New Accounting Pronouncements-Leases"), we will adopt Topic 842, which replaces Topic 840, on January 1, 2019. We have concluded that no significant changes are expected to our revenue accounting upon adoption of Topic 842. Owned equipment rentals: Owned equipment rentals represent revenues from renting equipment that we own. We account for such rentals as operating leases. Re-rent revenue: Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. Revenues from contracts with customers (Topic 606) The accounting for the significant types of revenue that are accounted for under Topic 606 is discussed below. Delivery and pick-up: Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. Sales of rental equipment, new equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is reasonably assured. Service and other revenues |
Advertising Expense | Advertising ExpenseWe promote our business through local and national advertising in various media, including television, trade publications, branded sponsorships, yellow pages, the internet, radio and direct mail. Advertising costs are generally expensed as incurred. These costs may include the development costs for branded content and advertising campaigns. |
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. The Tax Cuts and Jobs Act (the "Tax Act"), which was enacted in December 2017, had a substantial impact on our income tax benefit for the year ended December 31, 2017. The Tax Act reduced the U.S. federal statutory tax rate from 35 percent to 21 percent and the year ended December 31, 2018 reflects the decreased tax rate. See note 13 to the consolidated financial statements for further detail. |
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 (see note 3 |
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 recognize forfeitures of stock-based compensation as they occur. We adopted accounting guidance in 2017 that changed the cash flow presentation of excess tax benefits from share-based payment arrangements. For 2017 and 2018, the excess tax benefits from share-based payment arrangements are presented as a component of net cash provided by operating activities, while they are presented as a separate line item for 2016. |
New Accounting Pronouncements | New Accounting Pronouncements Leases . In March 2016, the FASB issued guidance ("Topic 842") to increase transparency and comparability among organizations by requiring (1) recognition of lease assets and lease liabilities on the balance sheet and (2) disclosure of key information about leasing arrangements. Some changes to the lessor accounting guidance were made to align both of the following: (1) the lessor accounting guidance with certain changes made to the lessee accounting guidance and (2) key aspects of the lessor accounting model with revenue recognition guidance. Topic 842 is effective for fiscal years and interim periods beginning after December 15, 2018. A modified retrospective approach is required for adoption for all leases that exist at or commence after the date of initial application with an option to use certain practical expedients. We expect to use the package of practical expedients that allows us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We additionally expect to use the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. We will adopt this guidance at the adoption date of January 1, 2019, using the transition method that allows us to initially apply Topic 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We do not expect to recognize a material adjustment to retained earnings upon adoption. We are additionally assessing the impact of Topic 842 on our internal controls over financial reporting. As discussed in note 3 to the consolidated financial statements, most of our equipment rental revenues, which accounted for 86 percent of total revenues for the year ended December 31, 2018 , were accounted for under the current lease accounting standard ("Topic 840") through December 31, 2018 and will be accounted for under Topic 842 upon adoption. We have concluded that no significant changes are expected to our revenue accounting upon adoption of Topic 842. See note 3 to the consolidated financial statements for a discussion of our revenue accounting (such discussion addresses our lease revenues). We determine if an arrangement is a lease at inception. We lease real estate and equipment under operating leases. We lease a significant portion of our branch locations, and also lease other premises used for purposes such as district and regional offices and service centers. Our current capital lease obligations consist primarily of vehicle and building leases. The capital leases addressed in note 14 to the consolidated financial statements are expected to be accounted for as finance leases upon adoption of Topic 842, and we do not expect any significant changes to the accounting for such leases upon adoption. Under Topic 842, operating leases result in the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Under Topic 842, operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, upon adoption of Topic 842, we will use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets will also include any lease payments made and exclude lease incentives. Our lease terms may include options to extend or terminate the lease that we are reasonably certain to exercise. Lease expense under Topic 842 will be recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, and we expect to account for the lease and non-lease components as a single lease component under Topic 842. The adoption of Topic 842 will have a material impact on our consolidated balance sheet due to the recognition of the ROU assets and lease liabilities. The adoption of Topic 842 is not expected to have a material impact on our consolidated income statement (as noted above, although a significant portion of our revenue will be accounted for under Topic 842 upon adoption, no significant changes to our revenue accounting are expected upon adoption) or our consolidated cash flow statement. Because of the transition method we will use to adopt Topic 842, Topic 842 will not be applied to periods prior to adoption and the adoption of Topic 842 will have no impact on our previously reported results. The future minimum lease payments for our operating leases as of December 31, 2018 are discussed in note 14 to the consolidated financial statements. The undiscounted total of such payments was $707 . Upon adoption of Topic 842, we expect to recognize operating lease ROU assets and lease liabilities that reflect the present value of these future payments. After the adoption of Topic 842, we will first report the operating lease ROU assets and lease liabilities as of March 31, 2019 based on our lease portfolio as of that date. The components of our historic lease expense and the future lease payments are discussed in note 14 to the consolidated financial statements. The capital leases addressed in note 14 are expected to be accounted for as finance leases upon adoption of Topic 842, and we do not expect any significant changes to the accounting for such leases upon adoption. Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued guidance that will require companies to present assets held at amortized cost and available for sale debt securities net of the amount expected to be collected. The guidance requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectibility. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2019 and early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Different components of the guidance require modified retrospective or prospective adoption. This guidance does not apply to receivables arising from operating leases. As discussed in note 3 to our consolidated financial statements, most of our equipment rental revenue is accounted for as lease revenue (such revenue represented 79 percent of our total revenues for the year ended December 31, 2018 ). We are currently assessing whether we will early adopt this guidance, and the impact on our financial statements, while limited to our non-operating lease receivables, is not currently estimable, as it will depend on market conditions and our forecast expectations upon, and following, adoption. Simplifying the Test for Goodwill Impairment . In January 2017, the FASB issued guidance intended to simplify the subsequent accounting for goodwill acquired in a business combination. Prior guidance required utilizing a two-step process to review goodwill for impairment. A second step was required if there was an indication that an impairment may exist, and the second step required calculating the potential impairment by comparing the implied fair value of the reporting unit's goodwill (as if purchase accounting were performed on the testing date) with the carrying amount of the goodwill. The new guidance eliminates the second step from the goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value (although the loss should not exceed the total amount of goodwill allocated to the reporting unit). The guidance requires prospective adoption and will be effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption of this guidance is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently assessing whether we will early adopt. The guidance is not expected to have a significant impact on our financial statements. Derivatives and Hedging . In August 2017, the FASB issued guidance with the objective of improving the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The guidance is additionally intended to simplify hedge accounting, and no longer requires separate measurement and reporting of hedge ineffectiveness. For cash flow and net investment hedges existing at the date of adoption, entities must apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings. The amended presentation and disclosure guidance is required prospectively. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2018, and we expect to adopt this guidance when effective. Given our currently limited use of derivative instruments, the guidance is not expected to have a significant impact on our financial statements. Guidance Adopted in 2018 Revenue from Contracts with Customers . See note 3 to our consolidated financial statements for a discussion of our revenue recognition accounting following our adoption in 2018 of FASB guidance addressing the principles for recognizing revenue. Statement of Cash Flows. In 2018, we retrospectively adopted guidance that was issued to reduce the diversity in the presentation of certain cash receipts and cash payments presented and classified in the statement of cash flows. The guidance addresses the following specific cash flow issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transitions and (8) separately identifiable cash flows and application of predominance principle. The adoption of this guidance did not have a significant impact on our financial statements. Intra-Entity Transfers of Assets Other Than Inventory. In 2018, we adopted guidance that requires companies to recognize the income tax effects of intra-entity sales and transfers of assets other than inventory in the period in which the transfer occurs. The adoption of this guidance did not have a significant impact on our financial statements. Clarifying the Definition of a Business . In 2018, we adopted guidance that was issued to clarify the definition of a business with the objective of assisting entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is intended to make determining when a set of assets and activities is a business more consistent and cost-efficient. The future impact of this guidance will depend on the nature of our future activities, and fewer transactions may be treated as acquisitions (or disposals) of businesses after adoption. Stock Compensation: Scope of Modification Accounting . In 2018, we prospectively adopted guidance that was issued to provide clarity and reduce both the (1) diversity in practice and (2) cost and complexity when changing the terms or conditions of share-based payment awards. Under the updated guidance, a modification is defined as a change in the terms or conditions of a share-based payment award, and an entity should account for the effects of a modification unless all of the following are met: 1. The fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation techniques that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. 2. The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. 3. The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The majority of our modifications relate to the acceleration of vesting conditions. The accounting for such modifications did not change under the adopted guidance, which did not have a significant impact on our financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of changes in accounting principles | The discussion below addresses our primary revenue types based on the accounting standard used to determine the accounting. In the following table, revenue is summarized by type and by the applicable accounting standard. Year Ended December 31, 2018 2017 2016 Topic 840 Topic 606 Total Topic 840 Topic 605 Total Topic 840 Topic 605 Total Revenues: Owned equipment rentals $ 5,946 $ — $ 5,946 $ 4,928 $ — $ 4,928 $ 4,273 $ — $ 4,273 Re-rent revenue 138 — 138 106 — 106 93 — 93 Ancillary and other rental revenues: Delivery and pick-up — 477 477 — 389 389 — 340 340 Other 287 92 379 228 64 292 186 49 235 Total ancillary and other rental revenues 287 569 856 228 453 681 186 389 575 Total equipment rentals 6,371 569 6,940 5,262 453 5,715 4,552 389 4,941 Sales of rental equipment — 664 664 — 550 550 — 496 496 Sales of new equipment — 208 208 — 178 178 — 144 144 Contractor supplies sales — 91 91 — 80 80 — 79 79 Service and other revenues — 144 144 — 118 118 — 102 102 Total revenues $ 6,371 $ 1,676 $ 8,047 $ 5,262 $ 1,379 $ 6,641 $ 4,552 $ 1,210 $ 5,762 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of changes in accounting principles | The discussion below addresses our primary revenue types based on the accounting standard used to determine the accounting. In the following table, revenue is summarized by type and by the applicable accounting standard. Year Ended December 31, 2018 2017 2016 Topic 840 Topic 606 Total Topic 840 Topic 605 Total Topic 840 Topic 605 Total Revenues: Owned equipment rentals $ 5,946 $ — $ 5,946 $ 4,928 $ — $ 4,928 $ 4,273 $ — $ 4,273 Re-rent revenue 138 — 138 106 — 106 93 — 93 Ancillary and other rental revenues: Delivery and pick-up — 477 477 — 389 389 — 340 340 Other 287 92 379 228 64 292 186 49 235 Total ancillary and other rental revenues 287 569 856 228 453 681 186 389 575 Total equipment rentals 6,371 569 6,940 5,262 453 5,715 4,552 389 4,941 Sales of rental equipment — 664 664 — 550 550 — 496 496 Sales of new equipment — 208 208 — 178 178 — 144 144 Contractor supplies sales — 91 91 — 80 80 — 79 79 Service and other revenues — 144 144 — 118 118 — 102 102 Total revenues $ 6,371 $ 1,676 $ 8,047 $ 5,262 $ 1,379 $ 6,641 $ 4,552 $ 1,210 $ 5,762 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of assets acquired and liabilities assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed. The purchase price allocations for these assets and liabilities are based on preliminary valuations and are subject to change as we obtain additional information during the acquisition measurement period. Accounts receivable, net of allowance for doubtful accounts (1) $ 74 Inventory 5 Rental equipment 268 Property and equipment 25 Intangibles (2) 171 Other assets 4 Total identifiable assets acquired 547 Current liabilities (61 ) Deferred taxes (13 ) Total liabilities assumed (74 ) Net identifiable assets acquired 473 Goodwill (3) 247 Net assets acquired $ 720 (1) The fair value of accounts receivables acquired was $ 74 , and the gross contractual amount was $ 80 . We estimated that $ 6 would be uncollectible. (2) The following table reflects the fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair value Life (years) Customer relationships $ 166 8 Trade names and associated trademarks 5 5 Total $ 171 (3) All of the goodwill was assigned to our trench, power and fluid solutions segment. The level of goodwill that resulted from the acquisition is primarily reflective of BakerCorp's going-concern value, the value of BakerCorp's assembled workforce, new customer relationships expected to arise from the acquisition, and operational synergies that we expect to achieve that are not associated with the identifiable assets. $ 6 Accounts receivable, net of allowance for doubtful accounts (1) $ 49 Inventory 4 Rental equipment 571 Property and equipment 48 Intangibles (2) 139 Other assets 7 Total identifiable assets acquired 818 Short-term debt and current maturities of long-term debt (3) (3 ) Current liabilities (33 ) Deferred taxes (15 ) Long-term debt (3) (11 ) Other long-term liabilities (5 ) Total liabilities assumed (67 ) Net identifiable assets acquired 751 Goodwill (4) 209 Net assets acquired $ 960 (1) The fair value of accounts receivables acquired was $ 49 , and the gross contractual amount was $ 53 . We estimated that $ 4 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 $ 138 10 Non-compete agreements 1 1 Total $ 139 (3) The acquired debt reflects capital lease obligations. (4) All of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the acquisition is primarily reflective of NES's going-concern value, the value of NES's assembled workforce, new customer relationships expected to arise from the acquisition, and operational synergies that we expect to achieve that are not associated with the identifiable assets. $ 1 Accounts receivable, net of allowance for doubtful accounts (1) $ 72 Inventory 5 Rental equipment 550 Property and equipment 45 Intangibles (customer relationships) (2) 153 Other assets 5 Total identifiable assets acquired 830 Current liabilities (62 ) Deferred taxes (36 ) Other long-term liabilities (3 ) Total liabilities assumed (101 ) Net identifiable assets acquired 729 Goodwill (3) 587 Net assets acquired $ 1,316 (1) The fair value of accounts receivables acquired was $ 72 , and the gross contractual amount was $ 74 . We estimated that $ 2 would be uncollectible. (2) The customer relationships are being amortized over a 10 year life. (3) All of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the acquisition is primarily reflective of Neff's going-concern value, the value of Neff's assembled workforce, new customer relationships expected to arise from the acquisition, and operational synergies that we expect to achieve that are not associated with the identifiable assets. $ 320 Accounts receivable, net of allowance for doubtful accounts (1) $ 117 Inventory 8 Rental equipment 1,081 Property and equipment 72 Intangibles (customer relationships) (2) 230 Other assets 39 Total identifiable assets acquired 1,547 Short-term debt and current maturities of long-term debt (3) (12 ) Current liabilities (124 ) Deferred taxes (4 ) Long-term debt (3) (25 ) Other long-term liabilities (4 ) Total liabilities assumed (169 ) Net identifiable assets acquired 1,378 Goodwill (4) 690 Net assets acquired $ 2,068 (1) The fair value of accounts receivables acquired was $ 117 , and the gross contractual amount was $ 125 . We estimated that $ 8 would be uncollectible. (2) The customer relationships are being amortized over a 5 year life. (3) The acquired debt reflects capital lease obligations. (4) All of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the acquisition is primarily reflective of BlueLine's going-concern value, the value of BlueLine's assembled workforce, new customer relationships expected to arise from the acquisition, and operational synergies that we expect to achieve that are not associated with the identifiable assets. $ 17 |
Schedule of finite-lived intangible assets acquired | The following table reflects the fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair value Life (years) Customer relationships $ 166 8 Trade names and associated trademarks 5 5 Total $ 171 Fair value Life (years) Customer relationships $ 138 10 Non-compete agreements 1 1 Total $ 139 |
Summary of pro forma information | The table below presents unaudited pro forma consolidated income statement information as if NES, Neff, BakerCorp and BlueLine had been included in our consolidated results for the entire periods reflected. NES and Neff are excluded from the 2018 presentation because they were included in our results for the entire year ended December 31, 2018 . Year Ended Year Ended December 31, 2018 December 31, 2017 United Rentals BakerCorp BlueLine Total United Rentals NES Neff BakerCorp BlueLine Total Historic/pro forma revenues $ 8,047 $ 184 $ 665 $ 8,896 $ 6,641 $ 81 $ 312 $ 276 $ 727 $ 8,037 Historic/combined pretax income (loss) 1,476 (84 ) (169 ) 1,223 1,048 (12 ) 38 (69 ) (132 ) 873 Pro forma adjustments to pretax income (loss): Impact of fair value mark-ups/useful life changes on depreciation (1) (8 ) (60 ) (68 ) (9 ) (8 ) (13 ) (72 ) (102 ) Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales (2) — (19 ) (19 ) (1 ) (1 ) — (25 ) (27 ) Intangible asset amortization (3) (18 ) (49 ) (67 ) (6 ) (21 ) (41 ) (77 ) (145 ) Goodwill impairment (4) — — — — — 32 — 32 Interest expense (5) (14 ) (92 ) (106 ) (9 ) (51 ) (19 ) (103 ) (182 ) Elimination of historic interest (6) 30 106 136 12 34 41 154 241 Elimination of merger related costs (7) 67 166 233 17 33 — — 50 Restructuring charges (8) 9 13 22 (3 ) (6 ) (9 ) (13 ) (31 ) Pro forma pretax income $ 1,354 $ 709 (1) Depreciation of rental equipment and non-rental depreciation were adjusted for the fair value mark-ups, and the changes in useful lives and salvage values, of the equipment acquired in the NES, Neff, BakerCorp and BlueLine acquisitions. (2) Cost of rental equipment sales was adjusted for the fair value mark-ups of rental equipment acquired in the NES, Neff and BlueLine acquisitions. BakerCorp did not historically recognize a material amount of rental equipment sales, and accordingly no adjustment was required for BakerCorp. (3) The intangible assets acquired in the NES, Neff, BakerCorp and BlueLine acquisitions were amortized. (4) The goodwill impairment charge that BakerCorp recognized during the year ended December 31, 2017 was eliminated. If the acquisition had occurred as of the pro forma acquisition date, this impairment charge would not have been recognized (instead, we would have tested for goodwill impairment based on the post-acquisition reporting unit structure). (5) As discussed above, we issued debt to partially fund the NES, Neff, BakerCorp and BlueLine acquisitions. Interest expense was adjusted to reflect these changes in our debt portfolio. (6) Historic interest, including losses on repurchase/redemption of debt securities, on debt that is not part of the combined entity was eliminated. (7) Merger related costs primarily comprised of financial and legal advisory fees associated with the NES, Neff, BakerCorp and BlueLine were eliminated as they were assumed to have been recognized prior to the pro forma acquisition date. The merger related costs also include a termination fee we paid associated with a merger agreement Neff entered into with a prior bidder. The adjustment for BakerCorp for the year ended December 31, 2018 includes $ 57 of merger related costs recognized by BakerCorp prior to the acquisition. The adjustment for BlueLine for the year ended December 31, 2018 includes $ 142 of merger related costs recognized by BlueLine prior to the acquisition. (8) We expect to recognize restructuring charges primarily comprised of severance costs and branch closure charges associated with the acquisitions over a period of approximately one year following the acquisition dates, which, for the pro forma presentation, was January 1, 2017. The adjustments above reflect the timing of the actual restructuring charges following the acquisitions (the pro forma restructuring charges above for the year ended December 31, 2017 reflect the actual restructuring charges recognized during year following the acquisitions). The restructuring charges reflected in our consolidated statements of income also include non acquisition-related restructuring charges, as discussed in note 6 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , 2017 and 2016 : Year Ended December 31, 2018 2017 2016 Primarily rented by our general rentals segment: General construction and industrial equipment 44 % 43 % 43 % Aerial work platforms 28 % 32 % 32 % General tools and light equipment 8 % 7 % 8 % Primarily rented by our trench, power and fluid solutions segment: Power and HVAC equipment 8 % 7 % 7 % Trench safety equipment 6 % 6 % 6 % Fluid solutions equipment 6 % 5 % 4 % |
Financial information by segment | The following table sets forth financial information by segment as of and for the years ended December 31, 2018 , 2017 and 2016 : General Trench, Total 2018 Equipment rentals $ 5,550 $ 1,390 $ 6,940 Sales of rental equipment 619 45 664 Sales of new equipment 186 22 208 Contractor supplies sales 68 23 91 Service and other revenues 127 17 144 Total revenue 6,550 1,497 8,047 Depreciation and amortization expense 1,410 261 1,671 Equipment rentals gross profit 2,293 670 2,963 Capital expenditures 1,980 311 2,291 Total assets $ 15,597 $ 2,536 $ 18,133 2017 Equipment rentals $ 4,727 $ 988 $ 5,715 Sales of rental equipment 509 41 550 Sales of new equipment 159 19 178 Contractor supplies sales 65 15 80 Service and other revenues 105 13 118 Total revenue 5,565 1,076 6,641 Depreciation and amortization expense 1,188 195 1,383 Equipment rentals gross profit 1,950 490 2,440 Capital expenditures 1,675 214 1,889 Total assets $ 13,351 $ 1,679 $ 15,030 2016 Equipment rentals $ 4,166 $ 775 $ 4,941 Sales of rental equipment 459 37 496 Sales of new equipment 128 16 144 Contractor supplies sales 64 15 79 Service and other revenues 91 11 102 Total revenue 4,908 854 5,762 Depreciation and amortization expense 1,066 179 1,245 Equipment rentals gross profit 1,725 364 2,089 Capital expenditures 1,189 150 1,339 Total assets $ 10,496 $ 1,492 $ 11,988 |
Reconciliation of segment operating income to total Company operating income | The following is a reconciliation of equipment rentals gross profit to income before provision (benefit) for income taxes: Year Ended December 31, 2018 2017 2016 Total equipment rentals gross profit $ 2,963 $ 2,440 $ 2,089 Gross profit from other lines of business 401 329 314 Selling, general and administrative expenses (1,038 ) (903 ) (719 ) Merger related costs (36 ) (50 ) — Restructuring charge (31 ) (50 ) (14 ) Non-rental depreciation and amortization (308 ) (259 ) (255 ) Interest expense, net (481 ) (464 ) (511 ) Other income, net 6 5 5 Income before provision (benefit) for income taxes $ 1,476 $ 1,048 $ 909 |
Geographic area information | The following table presents geographic area information for the years ended December 31, 2018 , 2017 and 2016 , except for balance sheet information, which is presented as of December 31, 2018 and 2017 : Domestic Foreign Total 2018 Equipment rentals $ 6,388 $ 552 $ 6,940 Sales of rental equipment 609 55 664 Sales of new equipment 184 24 208 Contractor supplies sales 80 11 91 Service and other revenues 126 18 144 Total revenue 7,387 660 8,047 Rental equipment, net 8,910 690 9,600 Property and equipment, net 559 55 614 Goodwill and other intangibles, net $ 5,665 $ 477 $ 6,142 2017 Equipment rentals $ 5,253 $ 462 $ 5,715 Sales of rental equipment 494 56 550 Sales of new equipment 157 21 178 Contractor supplies sales 70 10 80 Service and other revenues 102 16 118 Total revenue 6,076 565 6,641 Rental equipment, net 7,264 560 7,824 Property and equipment, net 425 42 467 Goodwill and other intangibles, net $ 4,642 $ 315 $ 4,957 2016 Equipment rentals $ 4,524 $ 417 $ 4,941 Sales of rental equipment 444 52 496 Sales of new equipment 129 15 144 Contractor supplies sales 68 11 79 Service and other revenues 87 15 102 Total revenue $ 5,252 $ 510 $ 5,762 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring charges | The table below provides certain information concerning our restructuring charges under the NES/Neff/Project XL restructuring program: Description Beginning Charged to Payments Ending Year ended December 31, 2017: Branch closure charges $ — $ 9 $ (1 ) $ 8 Severance costs — 39 (27 ) 12 Total $ — $ 48 $ (28 ) $ 20 Year ended December 31, 2018: Branch closure charges $ 8 $ — $ (4 ) $ 4 Severance and other 12 8 (13 ) 7 Total $ 20 $ 8 $ (17 ) $ 11 _________________ (1) Description Beginning Charged to Payments Ending Year ended December 31, 2016: Branch closure charges $ 13 $ 10 $ (7 ) $ 16 Severance costs 3 4 (6 ) 1 Total $ 16 $ 14 $ (13 ) $ 17 Year ended December 31, 2017: Branch closure charges $ 16 $ 2 $ (5 ) $ 13 Severance costs 1 — (1 ) — Total $ 17 $ 2 $ (6 ) $ 13 Year ended December 31, 2018: Branch closure charges $ 13 $ 1 $ (6 ) $ 8 Severance costs — — — — Total $ 13 $ 1 $ (6 ) $ 8 _________________ (1) Description Beginning Charged to Payments Ending Year ended December 31, 2018: Branch closure charges $ — $ 4 $ (1 ) $ 3 Severance and other — 18 (9 ) 9 Total $ — $ 22 $ (10 ) $ 12 ________________ (1) |
Rental Equipment (Tables)
Rental Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases, Operating [Abstract] | |
Schedule of rental equipment | Rental equipment consists of the following: December 31, 2018 2017 Rental equipment $ 13,962 $ 11,571 Less accumulated depreciation (4,362 ) (3,747 ) Rental equipment, net $ 9,600 $ 7,824 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consist of the following: December 31, 2018 2017 Land $ 103 $ 102 Buildings 277 238 Non-rental vehicles 200 112 Machinery and equipment 135 103 Furniture and fixtures 240 204 Leasehold improvements 272 245 1,227 1,004 Less accumulated depreciation and amortization (613 ) (537 ) Property and equipment, net $ 614 $ 467 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 : General rentals Trench, Total Balance at January 1, 2016 (1) $ 2,786 $ 457 $ 3,243 Goodwill related to acquisitions (2) 5 4 9 Foreign currency translation and other adjustments 6 2 8 Balance at December 31, 2016 (1) 2,797 463 3,260 Goodwill related to acquisitions (2) (3) 797 8 805 Foreign currency translation and other adjustments 13 4 17 Balance at December 31, 2017 (1) 3,607 475 4,082 Goodwill related to acquisitions (2) (3) 752 247 999 Foreign currency translation and other adjustments (17 ) (6 ) (23 ) Balance at December 31, 2018 (1) $ 4,342 $ 716 $ 5,058 _________________ (1) The total carrying amount of goodwill for all periods in the table above is reflected net of $1.557 billion of accumulated impairment charges, which were primarily recorded in our general rentals segment. (2) Includes goodwill adjustments for the effect on goodwill of changes to net assets acquired during the measurement period, which were not significant to our previously reported operating results or financial condition. (3) For additional detail on the acquisitions of NES, Neff, BakerCorp and BlueLine in April 2017, October 2017, July 2018 and October 2018, respectively, which accounted for most of the 2017 and 2018 goodwill related to acquisitions, see note 4 |
Components of intangible assets | Other intangible assets were comprised of the following at December 31, 2018 and 2017 : December 31, 2018 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 31 months $ 24 $ 16 $ 8 Customer relationships 7 years $ 2,148 $ 1,076 $ 1,072 Trade names and associated trademarks 5 years $ 5 $ 1 $ 4 December 31, 2017 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 31 months $ 71 $ 62 $ 9 Customer relationships 9 years $ 1,750 $ 884 $ 866 Our other intangibles assets, net at December 31, 2018 include the following assets associated with the acquisitions of BakerCorp and BlueLine discussed in note 4 to our consolidated financial statements. No residual value has been assigned to these assets which are being amortized using the sum of the years' digits method, which we believe best reflects the estimated pattern in which the economic benefits will be consumed. December 31, 2018 Weighted-Average Remaining Net Carrying BakerCorp: Customer relationships 7 years $ 149 Trade names and associated trademarks 5 years $ 4 BlueLine: Customer relationships 5 years $ 217 |
Estimated future amortization expense of intangible assets | As of December 31, 2018 , estimated amortization expense for other intangible assets for each of the next five years and thereafter was as follows: 2019 $ 268 2020 232 2021 190 2022 149 2023 106 Thereafter 139 Total $ 1,084 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other liabilities | Accrued expenses and other liabilities consist of the following: December 31, 2018 2017 Self-insurance accruals $ 46 $ 42 Accrued compensation and benefit costs 127 128 Property and income taxes payable 103 25 Restructuring reserves (1) 31 33 Interest payable 147 131 Deferred revenue (2) 56 46 National accounts accrual 69 50 Other (3) 98 81 Accrued expenses and other liabilities $ 677 $ 536 _________________ (1) Primarily relates to branch closure charges and severance costs. See note 6 for additional detail. (2) Reflects amounts billed to customers in excess of recognizable revenue. See note 3 for additional detail. (3) |
Summary of other long-term liabilities | Other long-term liabilities consist of the following: December 31, 2018 2017 Self-insurance accruals $ 60 $ 58 Income taxes payable 14 52 Accrued compensation and benefit costs 9 10 Other long-term liabilities $ 83 $ 120 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of the fair value of financial instruments | The estimated fair values of our other financial instruments, all of which are categorized in Level 1 of the fair value hierarchy, as of December 31, 2018 and 2017 have been calculated based upon available market information, and were as follows: December 31, 2018 December 31, 2017 Carrying Fair Carrying Fair Senior and senior subordinated notes $ 8,102 $ 7,632 $ 7,008 $ 7,340 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt instruments | Debt, net of unamortized original issue premiums and unamortized debt issuance costs, consists of the following: December 31, 2018 2017 Accounts receivable securitization facility expiring 2019 (1) $ 850 $ 695 $3.0 billion ABL facility expiring 2021 (1) 1,685 1,670 Term loan facility expiring 2025 (1) (2) 988 — 4 5 / 8 percent Senior Secured Notes due 2023 994 992 5 3 / 4 percent Senior Notes due 2024 842 841 5 1 / 2 percent Senior Notes due 2025 794 793 4 5 / 8 percent Senior Notes due 2025 741 740 5 7 / 8 percent Senior Notes due 2026 999 998 6 1 / 2 percent Senior Notes due 2026 (2) 1,087 — 5 1 / 2 percent Senior Notes due 2027 991 990 4 7 / 8 percent Senior Notes due 2028 (3) 1,650 1,648 4 7 / 8 percent Senior Notes due 2028 (3) 4 6 Capital leases 122 67 Total debt 11,747 9,440 Less short-term portion (903 ) (723 ) Total long-term debt $ 10,844 $ 8,717 (1) The table below presents financial information associated with our variable rate indebtedness as of and for the year ended December 31, 2018 . We have borrowed the full available amount under the term loan facility. The principal obligations under the term loan facility are required to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent per annum, with the balance due at the maturity of the facility. The average amount of debt outstanding under the term loan facility decreases slightly each quarter due to the requirement to repay a portion of the principal obligation. ABL facility Accounts receivable securitization facility Term loan facility Borrowing capacity, net of letters of credit $ 1,264 $ 125 $ — Letters of credit 45 Interest rate at December 31, 2018 4.0 % 3.3 % 4.3 % Average month-end debt outstanding 1,607 796 999 Weighted-average interest rate on average debt outstanding 3.5 % 2.9 % 4.1 % Maximum month-end debt outstanding 2,189 870 1,000 (2) In 2018, URNA i) entered into a $1 billion senior secured term loan facility and ii) issued $1.1 billion principal amount of 6 1 / 2 percent Senior Notes due 2026. As discussed in note 4 to the consolidated financial statements, the proceeds from the 6 1 / 2 percent Senior Notes and borrowings under the term loan facility were used to finance the acquisition of BlueLine in October 2018. See below for additional detail on the issued debt. (3) URNA separately issued 4 7 / 8 percent Senior Notes in August 2017 and in September 2017. Following the issuances, we consummated an exchange offer pursuant to which most of the 4 7 / 8 percent Senior Notes issued in September 2017 were exchanged for additional notes fungible with the 4 7 / 8 |
Schedule of the maturities of debt | Debt maturities (exclusive of any unamortized original issue premiums and unamortized debt issuance costs) for each of the next five years and thereafter at December 31, 2018 are as follows: 2019 $ 903 2020 42 2021 1,733 2022 19 2023 1,011 Thereafter 8,126 Total $ 11,834 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of the components of the provision (benefit) for income taxes | The following table presents the impact of the accounting for the enactment of the Tax Act on our provision (benefit) for income taxes for the years ended December 31, 2018 and 2017 : Year ended December 31, 2018 2017 Revaluation of deferred tax balances (1) $ 1 $ (746 ) One-time transition tax (2) 5 57 Total provision (benefit) for income taxes impact $ 6 $ (689 ) _________________ (1) Reflects the revaluation of our net deferred tax liability based on a U.S. federal tax rate of 21 percent. (2) December 31, 2018 are as follows: Year ended December 31, 2018 2017 2016 Current Federal $ 47 $ 190 $ 186 Foreign 18 15 10 State and local 58 30 24 123 235 220 Deferred Federal 243 (580 ) 119 Foreign 3 (2 ) (1 ) State and local 11 49 5 257 (533 ) 123 Total $ 380 $ (298 ) $ 343 |
Schedule of effective income tax rate reconciliation | A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rates ( 21 percent for the year ended December 31, 2018 and 35 percent for the years ended December 31, 2017 and 2016 ) to the income before provision (benefit) for income taxes for each of the three years in the period ended December 31, 2018 is as follows: Year ended December 31, 2018 2017 2016 Computed tax at statutory tax rate $ 310 $ 367 $ 318 State income taxes, net of federal tax benefit 54 34 21 Non-deductible expenses and other 6 (3 ) 9 Enactment of the Tax Act 6 (689 ) — Foreign taxes 4 (7 ) (5 ) Total $ 380 $ (298 ) $ 343 |
Schedule of deferred tax assets and liabilities | The components of deferred income tax assets (liabilities) are as follows: December 31, 2018 December 31, 2017 Reserves and allowances $ 126 $ 87 Debt cancellation and other 11 13 Net operating loss and credit carryforwards 435 192 Total deferred tax assets 572 292 Property and equipment (1,976 ) (1,498 ) Intangibles (237 ) (174 ) Valuation allowance (46 ) (39 ) Total deferred tax liability (2,259 ) (1,711 ) Total deferred income tax liability $ (1,687 ) $ (1,419 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 : Real 2019 $ 148 $ 45 2020 125 39 2021 102 30 2022 71 23 2023 43 17 Thereafter 47 17 Total $ 536 $ 171 |
Schedule of capital leased assets | The following table presents capital lease financial statement information for the years ended December 31, 2018 , 2017 and 2016 , except for balance sheet information, which is presented as of December 31, 2018 and 2017 : 2018 2017 2016 Depreciation of rental equipment $ 22 $ 21 $ 20 Non-rental depreciation and amortization 1 2 3 Rental equipment 257 203 Less accumulated depreciation (86 ) (80 ) Rental equipment, net 171 123 Property and equipment, net: Non-rental vehicles 6 2 Buildings 16 21 Less accumulated depreciation and amortization (12 ) (14 ) Property and equipment, net $ 10 $ 9 |
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, 2018 are as follows: 2019 $ 47 2020 34 2021 33 2022 9 2023 2 Thereafter 6 Total 131 Less amount representing interest (1) (9 ) Capital lease obligations $ 122 (1) The weighted average interest rate on our capital lease obligations as of December 31, 2018 was approximately 4.7 percent |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2017 549 26.80 Granted — — Exercised (85 ) 23.26 Canceled (1 ) 19.67 Outstanding at December 31, 2018 463 27.47 Exercisable at December 31, 2018 433 $ 25.38 December 31, 2018 and 2017 , and for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 Intrinsic value of options outstanding as of December 31 $ 35 $ 80 Intrinsic value of options exercisable as of December 31 33 72 Intrinsic value of options exercised 13 6 4 Weighted-average grant date fair value per option $ — $ 84.60 $ — |
Summary of restricted stock units activity | A summary of RSUs granted follows (RSUs in thousands): Year Ended December 31, 2018 2017 2016 RSUs granted 566 809 901 Weighted-average grant date price per unit $ 175.79 $ 130.96 $ 60.55 December 31, 2018 follows (RSUs in thousands): Stock Units Weighted-Average Nonvested as of December 31, 2017 756 $ 94.07 Granted 566 175.79 Vested (638 ) 141.89 Forfeited (35 ) 132.14 Nonvested as of December 31, 2018 649 $ 116.26 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | First Second Third Fourth Full For the year ended December 31, 2018 (1): Total revenues $ 1,734 $ 1,891 $ 2,116 $ 2,306 $ 8,047 Gross profit 646 782 938 998 3,364 Operating income 340 470 578 563 1,951 Net income (1) 183 270 333 310 1,096 Earnings per share—basic 2.18 3.22 4.05 3.84 13.26 Earnings per share—diluted (3) 2.15 3.20 4.01 3.80 13.12 For the year ended December 31, 2017 (2): Total revenues $ 1,356 $ 1,597 $ 1,766 $ 1,922 $ 6,641 Gross profit 514 655 773 827 2,769 Operating income 257 340 448 462 1,507 Net income (2) 109 141 199 897 1,346 Earnings per share—basic 1.29 1.67 2.36 10.60 15.91 Earnings per share—diluted (3) 1.27 1.65 2.33 10.45 15.73 (1) As discussed in note 13 to our consolidated financial statements, the Tax Act was enacted in December 2017. The Tax Act reduced the U.S. federal corporate tax rate from 35 percent to 21 percent, and net income for 2018 reflects the decreased tax rate. The fourth quarter of 2018 includes $ 22 of merger related costs and $ 16 of restructuring charges primarily associated with the BakerCorp and BlueLine acquisitions discussed in note 4 to our consolidated financial statements. (2) Net income for the fourth quarter and full year 2017 includes a benefit of $ 689 , or $ 8.03 and $ 8.05 per diluted share for the fourth quarter and full year 2017, respectively, associated with the enactment of the Tax Act discussed further in note 13 to our consolidated financial statements. The fourth quarter of 2017 includes $ 18 of merger related costs and $ 22 of restructuring charges primarily associated with the NES and Neff acquisitions discussed in note 4 to our consolidated financial statements. Additionally, in the fourth quarter of 2017, we redeemed the remaining $ 225 principal amount of our 7 5 / 8 percent Senior Notes due 2022. Upon the redemption of these notes, we recognized a loss of $ 11 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the redeemed notes. The fourth quarter of 2017 also reflects a year-over-year increase of $ 11 in stock compensation expense primarily due to the impact of increased revenue, improved profitability, and increases in our stock price and in the volume of stock awards. (3) Diluted earnings per share includes the after-tax impacts of the following: First Second Third Fourth Full For the year ended December 31, 2018: Merger related costs (4) $ (0.01 ) $ (0.02 ) $ (0.09 ) $ (0.21 ) $ (0.32 ) Merger related intangible asset amortization (5) (0.39 ) (0.37 ) (0.42 ) (0.58 ) (1.76 ) Impact on depreciation related to acquired fleet and property and equipment (6) (0.09 ) (0.08 ) (0.02 ) — (0.19 ) Impact of the fair value mark-up of acquired fleet (7) (0.21 ) (0.15 ) (0.11 ) (0.11 ) (0.59 ) Restructuring charge (8) (0.02 ) (0.03 ) (0.09 ) (0.15 ) (0.28 ) For the year ended December 31, 2017: Merger related costs (4) $ (0.02 ) $ (0.09 ) $ (0.12 ) $ (0.13 ) $ (0.36 ) Merger related intangible asset amortization (5) (0.28 ) (0.30 ) (0.27 ) (0.32 ) (1.15 ) Impact on depreciation related to acquired fleet and property and equipment (6) — 0.03 (0.07 ) (0.01 ) (0.05 ) Impact of the fair value mark-up of acquired fleet (7) (0.06 ) (0.13 ) (0.17 ) (0.23 ) (0.59 ) Restructuring charge (8) — (0.14 ) (0.07 ) (0.15 ) (0.36 ) Asset impairment charge (9) — — — — (0.01 ) Loss on extinguishment of debt securities and amendment of ABL facility — (0.09 ) (0.22 ) (0.08 ) (0.39 ) (4) This reflects transaction costs associated with the NES, Neff, BakerCorp and BlueLine acquisitions discussed in note 4 to our consolidated financial statements. (5) This reflects the amortization of the intangible assets acquired in the RSC, National Pump, NES, Neff, BakerCorp and BlueLine acquisitions. (6) This reflects the impact of extending the useful lives of equipment acquired in the RSC, NES, Neff, BakerCorp and BlueLine acquisitions, net of the impact of additional depreciation associated with the fair value mark-up of such equipment. (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, NES, Neff and BlueLine acquisitions and subsequently sold. (8) As discussed in note 6 to our consolidated financial statements, this primarily reflects severance costs and branch closure charges associated with our restructuring programs. (9) |
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, 2018: Merger related costs (4) $ (0.01 ) $ (0.02 ) $ (0.09 ) $ (0.21 ) $ (0.32 ) Merger related intangible asset amortization (5) (0.39 ) (0.37 ) (0.42 ) (0.58 ) (1.76 ) Impact on depreciation related to acquired fleet and property and equipment (6) (0.09 ) (0.08 ) (0.02 ) — (0.19 ) Impact of the fair value mark-up of acquired fleet (7) (0.21 ) (0.15 ) (0.11 ) (0.11 ) (0.59 ) Restructuring charge (8) (0.02 ) (0.03 ) (0.09 ) (0.15 ) (0.28 ) For the year ended December 31, 2017: Merger related costs (4) $ (0.02 ) $ (0.09 ) $ (0.12 ) $ (0.13 ) $ (0.36 ) Merger related intangible asset amortization (5) (0.28 ) (0.30 ) (0.27 ) (0.32 ) (1.15 ) Impact on depreciation related to acquired fleet and property and equipment (6) — 0.03 (0.07 ) (0.01 ) (0.05 ) Impact of the fair value mark-up of acquired fleet (7) (0.06 ) (0.13 ) (0.17 ) (0.23 ) (0.59 ) Restructuring charge (8) — (0.14 ) (0.07 ) (0.15 ) (0.36 ) Asset impairment charge (9) — — — — (0.01 ) Loss on extinguishment of debt securities and amendment of ABL facility — (0.09 ) (0.22 ) (0.08 ) (0.39 ) (4) This reflects transaction costs associated with the NES, Neff, BakerCorp and BlueLine acquisitions discussed in note 4 to our consolidated financial statements. (5) This reflects the amortization of the intangible assets acquired in the RSC, National Pump, NES, Neff, BakerCorp and BlueLine acquisitions. (6) This reflects the impact of extending the useful lives of equipment acquired in the RSC, NES, Neff, BakerCorp and BlueLine acquisitions, net of the impact of additional depreciation associated with the fair value mark-up of such equipment. (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, NES, Neff and BlueLine acquisitions and subsequently sold. (8) As discussed in note 6 to our consolidated financial statements, this primarily reflects severance costs and branch closure charges associated with our restructuring programs. (9) This reflects write-offs of leasehold improvements and other fixed assets in connection with our restructuring programs. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Numerator: Net income available to common stockholders $ 1,096 $ 1,346 $ 566 Denominator: Denominator for basic earnings per share—weighted-average common shares 82,652 84,599 87,217 Effect of dilutive securities: Employee stock options and warrants 379 403 277 Restricted stock units 499 560 281 Denominator for diluted earnings per share—adjusted weighted-average common shares 83,530 85,562 87,775 Basic earnings per share $ 13.26 $ 15.91 $ 6.49 Diluted earnings per share $ 13.12 $ 15.73 $ 6.45 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information of Guarantor Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Balance Sheets | The condensed consolidating financial information of Parent and its subsidiaries is as follows: CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total ASSETS Cash and cash equivalents $ — $ 1 $ — $ 42 $ — $ — $ 43 Accounts receivable, net — — — 159 1,386 — 1,545 Intercompany receivable (payable) 1,534 (1,423 ) (96 ) (15 ) — — — Inventory — 96 — 13 — — 109 Prepaid expenses and other assets — 60 — 4 — — 64 Total current assets 1,534 (1,266 ) (96 ) 203 1,386 — 1,761 Rental equipment, net — 8,910 — 690 — — 9,600 Property and equipment, net 57 462 40 55 — — 614 Investments in subsidiaries 1,826 1,646 980 — — (4,452 ) — Goodwill — 4,661 — 397 — — 5,058 Other intangibles, net — 1,004 — 80 — — 1,084 Other long-term assets 9 7 — — — — 16 Total assets $ 3,426 $ 15,424 $ 924 $ 1,425 $ 1,386 $ (4,452 ) $ 18,133 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 1 $ 50 $ — $ 2 $ 850 $ — $ 903 Accounts payable — 481 — 55 — — 536 Accrued expenses and other liabilities — 619 14 42 2 — 677 Total current liabilities 1 1,150 14 99 852 — 2,116 Long-term debt — 10,778 9 57 — — 10,844 Deferred taxes 22 1,587 — 78 — — 1,687 Other long-term liabilities — 83 — — — — 83 Total liabilities 23 13,598 23 234 852 — 14,730 Total stockholders’ equity (deficit) 3,403 1,826 901 1,191 534 (4,452 ) 3,403 Total liabilities and stockholders’ equity (deficit) $ 3,426 $ 15,424 $ 924 $ 1,425 $ 1,386 $ (4,452 ) $ 18,133 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2017 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total ASSETS Cash and cash equivalents $ — $ 23 $ — $ 329 $ — $ — $ 352 Accounts receivable, net — 56 — 119 1,058 — 1,233 Intercompany receivable (payable) 887 (677 ) (198 ) (124 ) — 112 — Inventory — 68 — 7 — — 75 Prepaid expenses and other assets 4 219 111 2 — (224 ) 112 Total current assets 891 (311 ) (87 ) 333 1,058 (112 ) 1,772 Rental equipment, net — 7,264 — 560 — — 7,824 Property and equipment, net 41 352 32 42 — — 467 Investments in subsidiaries 2,194 1,148 1,087 — — (4,429 ) — Goodwill — 3,815 — 267 — — 4,082 Other intangibles, net — 827 — 48 — — 875 Other long-term assets 3 7 — — — — 10 Total assets $ 3,129 $ 13,102 $ 1,032 $ 1,250 $ 1,058 $ (4,541 ) $ 15,030 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Short-term debt and current maturities of long-term debt $ 1 $ 25 $ — $ 2 $ 695 $ — $ 723 Accounts payable — 366 — 43 — — 409 Accrued expenses and other liabilities — 477 17 41 1 — 536 Total current liabilities 1 868 17 86 696 — 1,668 Long-term debt 1 8,596 117 3 — — 8,717 Deferred taxes 21 1,324 — 74 — — 1,419 Other long-term liabilities — 120 — — — — 120 Total liabilities 23 10,908 134 163 696 — 11,924 Total stockholders’ equity (deficit) 3,106 2,194 898 1,087 362 (4,541 ) 3,106 Total liabilities and stockholders’ equity (deficit) $ 3,129 $ 13,102 $ 1,032 $ 1,250 $ 1,058 $ (4,541 ) $ 15,030 |
Condensed Consolidating Statements of Income | CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2018 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Revenues: Equipment rentals $ — $ 6,388 $ — $ 552 $ — $ — $ 6,940 Sales of rental equipment — 609 — 55 — — 664 Sales of new equipment — 184 — 24 — — 208 Contractor supplies sales — 80 — 11 — — 91 Service and other revenues — 126 — 18 — — 144 Total revenues — 7,387 — 660 — — 8,047 Cost of revenues: Cost of equipment rentals, excluding depreciation — 2,370 — 244 — — 2,614 Depreciation of rental equipment — 1,258 — 105 — — 1,363 Cost of rental equipment sales — 358 — 28 — — 386 Cost of new equipment sales — 159 — 20 — — 179 Cost of contractor supplies sales — 52 — 8 — — 60 Cost of service and other revenues — 71 — 10 — — 81 Total cost of revenues — 4,268 — 415 — — 4,683 Gross profit — 3,119 — 245 — — 3,364 Selling, general and administrative expenses 25 860 — 96 57 — 1,038 Merger related costs — 36 — — — — 36 Restructuring charge — 29 — 2 — — 31 Non-rental depreciation and amortization 17 266 — 25 — — 308 Operating (loss) income (42 ) 1,928 — 122 (57 ) — 1,951 Interest (income) expense, net (39 ) 497 — — 24 (1 ) 481 Other (income) expense, net (657 ) 742 — 51 (142 ) — (6 ) Income before provision for income taxes 654 689 — 71 61 1 1,476 Provision for income taxes 164 181 — 20 15 — 380 Income before equity in net earnings (loss) of subsidiaries 490 508 — 51 46 1 1,096 Equity in net earnings (loss) of subsidiaries 606 98 47 — — (751 ) — Net income (loss) 1,096 606 47 51 46 (750 ) 1,096 Other comprehensive (loss) income (86 ) (86 ) (82 ) (105 ) — 273 (86 ) Comprehensive income (loss) $ 1,010 $ 520 $ (35 ) $ (54 ) $ 46 $ (477 ) $ 1,010 CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2017 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Revenues: Equipment rentals $ — $ 5,253 $ — $ 462 $ — $ — $ 5,715 Sales of rental equipment — 494 — 56 — — 550 Sales of new equipment — 157 — 21 — — 178 Contractor supplies sales — 70 — 10 — — 80 Service and other revenues — 102 — 16 — — 118 Total revenues — 6,076 — 565 — — 6,641 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,933 — 218 — — 2,151 Depreciation of rental equipment — 1,033 — 91 — — 1,124 Cost of rental equipment sales — 302 — 28 — — 330 Cost of new equipment sales — 134 — 18 — — 152 Cost of contractor supplies sales — 49 — 7 — — 56 Cost of service and other revenues — 51 — 8 — — 59 Total cost of revenues — 3,502 — 370 — — 3,872 Gross profit — 2,574 — 195 — — 2,769 Selling, general and administrative expenses 103 682 — 80 38 — 903 Merger related costs — 50 — — — — 50 Restructuring charge — 49 — 1 — — 50 Non-rental depreciation and amortization 15 223 — 21 — — 259 Operating (loss) income (118 ) 1,570 — 93 (38 ) — 1,507 Interest (income) expense, net (15 ) 469 3 — 12 (5 ) 464 Other (income) expense, net (543 ) 596 — 45 (103 ) — (5 ) Income (loss) before provision (benefit) for income taxes 440 505 (3 ) 48 53 5 1,048 Provision (benefit) for income taxes 144 (469 ) — 12 15 — (298 ) Income (loss) before equity in net earnings (loss) of subsidiaries 296 974 (3 ) 36 38 5 1,346 Equity in net earnings (loss) of subsidiaries 1,050 76 36 — — (1,162 ) — Net income (loss) 1,346 1,050 33 36 38 (1,157 ) 1,346 Other comprehensive income (loss) 67 67 67 55 — (189 ) 67 Comprehensive income (loss) $ 1,413 $ 1,117 $ 100 $ 91 $ 38 $ (1,346 ) $ 1,413 CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Year Ended December 31, 2016 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Revenues: Equipment rentals $ — $ 4,524 $ — $ 417 $ — $ — $ 4,941 Sales of rental equipment — 444 — 52 — — 496 Sales of new equipment — 129 — 15 — — 144 Contractor supplies sales — 68 — 11 — — 79 Service and other revenues — 87 — 15 — — 102 Total revenues — 5,252 — 510 — — 5,762 Cost of revenues: Cost of equipment rentals, excluding depreciation — 1,669 — 193 — — 1,862 Depreciation of rental equipment — 900 — 90 — — 990 Cost of rental equipment sales — 265 — 27 — — 292 Cost of new equipment sales — 107 — 12 — — 119 Cost of contractor supplies sales — 47 — 8 — — 55 Cost of service and other revenues — 35 — 6 — — 41 Total cost of revenues — 3,023 — 336 — — 3,359 Gross profit — 2,229 — 174 — — 2,403 Selling, general and administrative expenses 43 579 — 72 25 — 719 Restructuring charge — 7 — 7 — — 14 Non-rental depreciation and amortization 15 216 — 24 — — 255 Operating (loss) income (58 ) 1,427 — 71 (25 ) — 1,415 Interest (income) expense, net (6 ) 509 3 2 8 (5 ) 511 Other (income) expense, net (471 ) 521 — 40 (95 ) — (5 ) Income (loss) before provision for income taxes 419 397 (3 ) 29 62 5 909 Provision for income taxes 154 157 — 8 24 — 343 Income (loss) before equity in net earnings (loss) of subsidiaries 265 240 (3 ) 21 38 5 566 Equity in net earnings (loss) of subsidiaries 301 61 21 — — (383 ) — Net income (loss) 566 301 18 21 38 (378 ) 566 Other comprehensive income (loss) 32 32 28 22 — (82 ) 32 Comprehensive income (loss) $ 598 $ 333 $ 46 $ 43 $ 38 $ (460 ) $ 598 |
Condensed Consolidating Cash Flow Information | CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Year Ended December 31, 2018 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Net cash provided by (used in) operating activities $ 36 $ 3,116 $ (1 ) $ (16 ) $ (282 ) $ — $ 2,853 Net cash used in investing activities (36 ) (4,308 ) — (207 ) — — (4,551 ) Net cash provided by (used in) financing activities — 1,170 1 (56 ) 282 — 1,397 Effect of foreign exchange rates — — — (8 ) — — (8 ) Net decrease in cash and cash equivalents — (22 ) — (287 ) — — (309 ) Cash and cash equivalents at beginning of period — 23 — 329 — — 352 Cash and cash equivalents at end of period $ — $ 1 $ — $ 42 $ — $ — $ 43 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Year Ended December 31, 2017 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Net cash provided by (used in) operating activities $ 21 $ 2,291 $ (3 ) $ 132 $ (232 ) $ — $ 2,209 Net cash used in investing activities (21 ) (3,554 ) — (109 ) — — (3,684 ) Net cash provided by (used in) financing activities — 1,265 3 (3 ) 232 — 1,497 Effect of foreign exchange rates — — — 18 — — 18 Net increase in cash and cash equivalents — 2 — 38 — — 40 Cash and cash equivalents at beginning of period — 21 — 291 — — 312 Cash and cash equivalents at end of period $ — $ 23 $ — $ 329 $ — $ — $ 352 CONDENSED CONSOLIDATING CASH FLOW INFORMATION For the Year Ended December 31, 2016 Non-Guarantor Parent URNA Guarantor Foreign SPV Eliminations Total Net cash provided by (used in) operating activities $ 9 $ 1,762 $ (3 ) $ 136 $ 37 $ — $ 1,941 Net cash used in investing activities (9 ) (832 ) — (6 ) — — (847 ) Net cash (used in) provided by financing activities — (927 ) 3 (3 ) (37 ) — (964 ) Effect of foreign exchange rate — — — 3 — — 3 Net increase in cash and cash equivalents — 3 — 130 — — 133 Cash and cash equivalents at beginning of period — 18 — 161 — — 179 Cash and cash equivalents at end of period $ — $ 21 $ — $ 291 $ — $ — $ 312 |
Organization, Description of _2
Organization, Description of Business and Consolidation (Narrative) (Details) | Jul. 31, 2018branch |
France, Germany, United Kingdom, and Netherlands | BakerCorp | |
Business Acquisition [Line Items] | |
Number of branch locations | 11 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 01, 2018 | Jul. 31, 2018branch | Oct. 01, 2017 | |
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment additions | $ 2,106 | $ 1,769 | $ 1,246 | |||
Percentage of fair value in excess of carrying amount | 52.00% | |||||
Advertising expense, net of reimbursements | 0 | 0 | 0 | |||
Advertising reimbursements | 41 | 35 | 19 | |||
Tax Cuts And Jobs Act Of 2017 transition tax | 62 | |||||
Tax Cuts and Jobs Act of 2017, transition tax, noncurrent | 14 | |||||
Operating leases, future minimum payments due | $ 707 | |||||
Non-compete agreements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Finite lived intangible assets life | 5 years | |||||
Trade names and associated trademarks | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Finite lived intangible assets life | 5 years | |||||
Reporting units excluding Pump Solutions | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of fair value in excess of carrying amount | 45.00% | |||||
Rental Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Cost of goods and services sold | $ 864 | 714 | 629 | |||
Equipment Leased To Other Party, Refurbishment Program | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment additions | $ 14 | $ 10 | $ 18 | |||
Minimum | Customer relationships | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Finite lived intangible assets life | 5 years | |||||
Minimum | Rental Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment useful life | 2 years | |||||
Property, plant and equipment salvage value | 0.00% | |||||
Minimum | Property and Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment useful life | 2 years | |||||
Maximum | Customer relationships | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Finite lived intangible assets life | 15 years | |||||
Maximum | Rental Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment useful life | 20 years | |||||
Property, plant and equipment salvage value | 10.00% | |||||
Maximum | Property and Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment useful life | 39 years | |||||
BakerCorp | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of fair value in excess of carrying amount | 7.00% | |||||
BakerCorp | France, Germany, United Kingdom, and Netherlands | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of branch locations | branch | 11 | |||||
Topic 840 | Total equipment rentals | Product concentration risk | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of equipment rental revenue | 79.00% | |||||
Topic 840 | Owned Equipment Rentals | Total equipment rentals | Product concentration risk | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of equipment rental revenue | 86.00% |
Revenue Recognition (Revenue su
Revenue Recognition (Revenue summarized by type and applicable accounting standard) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Owned equipment rentals | $ 5,946 | $ 4,928 | $ 4,273 | ||||||||
Re-rent revenue | 138 | 106 | 93 | ||||||||
Revenues | $ 2,306 | $ 2,116 | $ 1,891 | $ 1,734 | $ 1,922 | $ 1,766 | $ 1,597 | $ 1,356 | 8,047 | 6,641 | 5,762 |
Ancillary and Other Rental Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 477 | 389 | 340 | ||||||||
Other | 379 | 292 | 235 | ||||||||
Revenues | 856 | 681 | 575 | ||||||||
Total equipment rentals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6,940 | 5,715 | 4,941 | ||||||||
Sales of rental equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 664 | 550 | 496 | ||||||||
Sales of new equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 208 | 178 | 144 | ||||||||
Contractor supplies sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 91 | 80 | 79 | ||||||||
Service and other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 144 | 118 | 102 | ||||||||
Topic 840 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Owned equipment rentals | 5,946 | 4,928 | 4,273 | ||||||||
Re-rent revenue | 138 | 106 | 93 | ||||||||
Revenues | 6,371 | 5,262 | 4,552 | ||||||||
Topic 840 | Ancillary and Other Rental Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | ||||||||
Other | 287 | 228 | 186 | ||||||||
Revenues | 287 | 228 | 186 | ||||||||
Topic 840 | Total equipment rentals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6,371 | 5,262 | 4,552 | ||||||||
Topic 606 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,676 | ||||||||||
Topic 606 | Ancillary and Other Rental Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 477 | ||||||||||
Other | 92 | ||||||||||
Revenues | 569 | ||||||||||
Topic 606 | Total equipment rentals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 569 | ||||||||||
Topic 606 | Sales of rental equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 664 | ||||||||||
Topic 606 | Sales of new equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 208 | ||||||||||
Topic 606 | Contractor supplies sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 91 | ||||||||||
Topic 606 | Service and other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | $ 144 | ||||||||||
Topic 605 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,379 | 1,210 | |||||||||
Topic 605 | Ancillary and Other Rental Revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 389 | 340 | |||||||||
Other | 64 | 49 | |||||||||
Revenues | 453 | 389 | |||||||||
Topic 605 | Total equipment rentals | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 453 | 389 | |||||||||
Topic 605 | Sales of rental equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 550 | 496 | |||||||||
Topic 605 | Sales of new equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 178 | 144 | |||||||||
Topic 605 | Contractor supplies sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 80 | 79 | |||||||||
Topic 605 | Service and other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | $ 118 | $ 102 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue | $ 56 | $ 46 | |
Contract with customer, liability, revenue recognized | 0 | ||
Provision for doubtful accounts | $ 45 | $ 40 | $ 24 |
Customer concentration risk | Revenues | Largest customer | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage (less than 1% of total revenues) | 1.00% | 1.00% | 1.00% |
Customer concentration risk | Accounts receivable | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage (less than 1% of total revenues) | 1.00% | 1.00% | |
Owned Equipment Rentals | Product concentration risk | Revenues | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage (less than 1% of total revenues) | 74.00% | ||
Topic 840 | Product concentration risk | Total equipment rentals | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage (less than 1% of total revenues) | 79.00% | ||
Topic 840 | Owned Equipment Rentals | Product concentration risk | Total equipment rentals | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage (less than 1% of total revenues) | 86.00% | ||
General rentals | Product concentration risk | Revenues | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage (less than 1% of total revenues) | 81.00% | ||
UNITED STATES | Geographic Concentration Risk | Revenues | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage (less than 1% of total revenues) | 92.00% | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Transferred at point in time | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | $ 0 |
Acquisitions (Narrative - NES A
Acquisitions (Narrative - NES Acquisition) (Details) $ in Millions | 1 Months Ended | |||
Apr. 30, 2017USD ($)branch | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)employee | |
Business Acquisition [Line Items] | ||||
Rental assets | $ 9,600 | $ 7,824 | ||
NES | ||||
Business Acquisition [Line Items] | ||||
Revenue reported by acquired entity for last annual period | $ 369 | |||
Consideration transferred | $ 960 | |||
NES | ||||
Business Acquisition [Line Items] | ||||
Number of branch locations | branch | 73 | |||
Number of entity employees | employee | 1,100 | |||
Rental assets | $ 900 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation - NES Acquisition) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 5,058 | $ 4,082 | $ 3,260 | $ 3,243 | |
NES | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable, net of allowance for doubtful accounts | $ 49 | ||||
Inventory | 4 | ||||
Rental equipment | 571 | ||||
Property and equipment | 48 | ||||
Intangibles | 139 | ||||
Other assets | 7 | ||||
Total identifiable assets acquired | 818 | ||||
Short-term debt and current maturities of long-term debt | (3) | ||||
Current liabilities | (33) | ||||
Deferred taxes | (15) | ||||
Long-term debt | (11) | ||||
Other long-term liabilities | (5) | ||||
Total liabilities assumed | (67) | ||||
Net identifiable assets acquired | 751 | ||||
Goodwill | 209 | ||||
Net assets acquired | 960 | ||||
Accounts receivable, gross | 53 | ||||
Accounts receivable, allowance for doubtful accounts | 4 | ||||
Goodwill expected to be deductible for tax purposes | $ 1 |
Acquisitions (Intangibles - NES
Acquisitions (Intangibles - NES Acquisition) (Details) - NES $ in Millions | 1 Months Ended |
Apr. 30, 2017USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair value | $ 139 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair value | $ 138 |
Life (years) | 10 years |
Non-compete agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair value | $ 1 |
Life (years) | 1 year |
Acquisitions (Narrative - Neff
Acquisitions (Narrative - Neff Acquisition) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2017USD ($)branchstate | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($)employee | |
Business Acquisition [Line Items] | ||||
Rental assets | $ 9,600 | $ 7,824 | ||
Increase in original equipment cost on rent, percent | 18.80% | |||
Neff | ||||
Business Acquisition [Line Items] | ||||
Number of states in which entity operates | state | 14 | |||
Revenue reported by acquired entity for last annual period | $ 413 | |||
Consideration transferred | 1,316 | |||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 7 | |||
Neff | ||||
Business Acquisition [Line Items] | ||||
Number of branch locations | branch | 69 | |||
Number of entity employees | employee | 1,100 | |||
Rental assets | $ 860 |
Acquisitions (Purchase Price _2
Acquisitions (Purchase Price Allocation - Neff Acquisition) (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 5,058 | $ 4,082 | $ 3,260 | $ 3,243 | |
Neff | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable, net of allowance for doubtful accounts | $ 72 | ||||
Inventory | 5 | ||||
Rental equipment | 550 | ||||
Property and equipment | 45 | ||||
Intangibles (customer relationships) | 153 | ||||
Other assets | 5 | ||||
Total identifiable assets acquired | 830 | ||||
Current liabilities | (62) | ||||
Deferred taxes | (36) | ||||
Other long-term liabilities | (3) | ||||
Total liabilities assumed | (101) | ||||
Net identifiable assets acquired | 729 | ||||
Goodwill | 587 | ||||
Net assets acquired | 1,316 | ||||
Accounts receivable, gross | 74 | ||||
Accounts receivable, allowance for doubtful accounts | 2 | ||||
Goodwill expected to be deductible for tax purposes | $ 320 | ||||
Customer relationships | Neff | |||||
Business Acquisition [Line Items] | |||||
Life (years) | 10 years |
Acquisitions (Narrative - Baker
Acquisitions (Narrative - BakerCorp Acquisition) (Details) $ in Millions | 1 Months Ended |
Jul. 31, 2018USD ($)employeebranchlocation | |
BakerCorp | |
Business Acquisition [Line Items] | |
Number of entity employees | employee | 950 |
BakerCorp | United States and Canada | |
Business Acquisition [Line Items] | |
Number of branch locations | location | 46 |
BakerCorp | France, Germany, United Kingdom, and Netherlands | |
Business Acquisition [Line Items] | |
Number of branch locations | location | 11 |
BakerCorp | |
Business Acquisition [Line Items] | |
Revenue reported by acquired entity for last annual period | $ | $ 295 |
Consideration transferred | $ | $ 720 |
BakerCorp | France, Germany, United Kingdom, and Netherlands | |
Business Acquisition [Line Items] | |
Number of branch locations | branch | 11 |
Acquisitions (Purchase Price _3
Acquisitions (Purchase Price Allocation - BakerCorp Acquisition) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 5,058 | $ 4,082 | $ 3,260 | $ 3,243 | |
BakerCorp | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable, net of allowance for doubtful accounts | $ 74 | ||||
Inventory | 5 | ||||
Rental equipment | 268 | ||||
Property and equipment | 25 | ||||
Intangibles | 171 | ||||
Other assets | 4 | ||||
Total identifiable assets acquired | 547 | ||||
Current liabilities | (61) | ||||
Deferred taxes | (13) | ||||
Total liabilities assumed | (74) | ||||
Net identifiable assets acquired | 473 | ||||
Goodwill | 247 | ||||
Net assets acquired | 720 | ||||
Accounts receivable, gross | 80 | ||||
Accounts receivable, allowance for doubtful accounts | 6 | ||||
Goodwill expected to be deductible for tax purposes | $ 6 |
Acquisitions (Intangibles - Bak
Acquisitions (Intangibles - BakerCorp Acquisition) (Details) - BakerCorp $ in Millions | 1 Months Ended |
Jul. 31, 2018USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair value | $ 171 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair value | $ 166 |
Life (years) | 8 years |
Trade names and associated trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair value | $ 5 |
Life (years) | 5 years |
Acquisitions (Narrative - BlueL
Acquisitions (Narrative - BlueLine Acquisition) (Details) | 1 Months Ended | |
Oct. 31, 2018USD ($)employeelocationstate | Dec. 31, 2018 | |
BlueLine | ||
Business Acquisition [Line Items] | ||
Revenue reported by acquired entity for last annual period | $ 786,000,000 | |
Consideration transferred | $ 2,068,000,000 | |
BlueLine | ||
Business Acquisition [Line Items] | ||
Number of branch locations | location | 114 | |
Number of entity employees | employee | 1,700 | |
Number of states in which entity operates | state | 25 | |
Line of credit | ||
Business Acquisition [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |
Senior Notes 6.5 Percent | Senior notes | ||
Business Acquisition [Line Items] | ||
Stated interest rate | 6.50% | |
Senior Notes 6.5 Percent | Senior notes | BlueLine | ||
Business Acquisition [Line Items] | ||
Stated interest rate | 6.50% | |
Senior Notes 6.5 Percent | Senior notes | BlueLine | ||
Business Acquisition [Line Items] | ||
Debt instrument, face amount | $ 1,100,000,000 |
Acquisitions (Purchase Price _4
Acquisitions (Purchase Price Allocation - BlueLine Acquisition) (Details) - USD ($) $ in Millions | Oct. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 5,058 | $ 4,082 | $ 3,260 | $ 3,243 | |
BlueLine | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable, net of allowance for doubtful accounts | $ 117 | ||||
Inventory | 8 | ||||
Rental equipment | 1,081 | ||||
Property and equipment | 72 | ||||
Intangibles (customer relationships) | 230 | ||||
Other assets | 39 | ||||
Total identifiable assets acquired | 1,547 | ||||
Short-term debt and current maturities of long-term debt | (12) | ||||
Current liabilities | (124) | ||||
Deferred taxes | (4) | ||||
Long-term debt | (25) | ||||
Other long-term liabilities | (4) | ||||
Total liabilities assumed | (169) | ||||
Net identifiable assets acquired | 1,378 | ||||
Goodwill | 690 | ||||
Net assets acquired | 2,068 | ||||
Accounts receivable, gross | 125 | ||||
Accounts receivable, allowance for doubtful accounts | 8 | ||||
Goodwill expected to be deductible for tax purposes | $ 17 | ||||
Customer relationships | BlueLine | |||||
Business Acquisition [Line Items] | |||||
Life (years) | 5 years |
Acquisitions (Pro Forma) (Detai
Acquisitions (Pro Forma) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||||||||||
Historic/pro forma revenues | $ 8,896 | $ 8,037 | |||||||||
Revenues | $ 2,306 | $ 2,116 | $ 1,891 | $ 1,734 | $ 1,922 | $ 1,766 | $ 1,597 | $ 1,356 | 8,047 | 6,641 | $ 5,762 |
Historic/combined pretax income (loss) | 1,476 | 1,048 | 909 | ||||||||
Historic/combined pretax income (loss) | 1,223 | 873 | |||||||||
Pro forma pretax income | 1,354 | 709 | |||||||||
Merger related costs | $ 22 | $ 18 | 36 | 50 | $ 0 | ||||||
Impact of fair value mark-ups/useful life changes on depreciation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (68) | (102) | |||||||||
Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (19) | (27) | |||||||||
Intangible asset amortization | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (67) | (145) | |||||||||
Goodwill Impairment | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 0 | 32 | |||||||||
Interest expense | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (106) | (182) | |||||||||
Elimination of historic interest | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 136 | 241 | |||||||||
Elimination of merger related costs | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 233 | 50 | |||||||||
Restructuring charges | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 22 | (31) | |||||||||
NES | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenues | 81 | ||||||||||
Historic/combined pretax income (loss) | (12) | ||||||||||
NES | Impact of fair value mark-ups/useful life changes on depreciation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (9) | ||||||||||
NES | Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (1) | ||||||||||
NES | Intangible asset amortization | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (6) | ||||||||||
NES | Goodwill Impairment | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 0 | ||||||||||
NES | Interest expense | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (9) | ||||||||||
NES | Elimination of historic interest | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 12 | ||||||||||
NES | Elimination of merger related costs | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 17 | ||||||||||
NES | Restructuring charges | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (3) | ||||||||||
Neff | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenues | 312 | ||||||||||
Historic/combined pretax income (loss) | 38 | ||||||||||
Neff | Impact of fair value mark-ups/useful life changes on depreciation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (8) | ||||||||||
Neff | Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (1) | ||||||||||
Neff | Intangible asset amortization | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (21) | ||||||||||
Neff | Goodwill Impairment | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 0 | ||||||||||
Neff | Interest expense | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (51) | ||||||||||
Neff | Elimination of historic interest | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 34 | ||||||||||
Neff | Elimination of merger related costs | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 33 | ||||||||||
Neff | Restructuring charges | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (6) | ||||||||||
BakerCorp | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenues | 184 | 276 | |||||||||
Historic/combined pretax income (loss) | (84) | (69) | |||||||||
Merger related costs | 57 | ||||||||||
BakerCorp | Impact of fair value mark-ups/useful life changes on depreciation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (8) | (13) | |||||||||
BakerCorp | Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 0 | 0 | |||||||||
BakerCorp | Intangible asset amortization | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (18) | (41) | |||||||||
BakerCorp | Goodwill Impairment | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 0 | 32 | |||||||||
BakerCorp | Interest expense | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (14) | (19) | |||||||||
BakerCorp | Elimination of historic interest | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 30 | 41 | |||||||||
BakerCorp | Elimination of merger related costs | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 67 | 0 | |||||||||
BakerCorp | Restructuring charges | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 9 | (9) | |||||||||
BlueLine | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenues | 665 | 727 | |||||||||
Historic/combined pretax income (loss) | (169) | (132) | |||||||||
Merger related costs | 142 | ||||||||||
BlueLine | Impact of fair value mark-ups/useful life changes on depreciation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (60) | (72) | |||||||||
BlueLine | Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (19) | (25) | |||||||||
BlueLine | Intangible asset amortization | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (49) | (77) | |||||||||
BlueLine | Goodwill Impairment | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 0 | 0 | |||||||||
BlueLine | Interest expense | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | (92) | (103) | |||||||||
BlueLine | Elimination of historic interest | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 106 | 154 | |||||||||
BlueLine | Elimination of merger related costs | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | 166 | 0 | |||||||||
BlueLine | Restructuring charges | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Historic/combined pretax income (loss) | $ 13 | $ (13) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018regionsegment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 2 |
General rentals | |
Segment Reporting Information [Line Items] | |
Number of geographic regions entity operates in | region | 11 |
Segment Information (Percentage
Segment Information (Percentage of Equipment Rental Revenue by Equipment Type) (Details) - Equipment rental revenue - Product concentration risk | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
General construction and industrial equipment | General rentals | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 44.00% | 43.00% | 43.00% |
Aerial work platforms | General rentals | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 28.00% | 32.00% | 32.00% |
General tools and light equipment | General rentals | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 8.00% | 7.00% | 8.00% |
Power and HVAC equipment | Trench, power and fluid solutions | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 8.00% | 7.00% | 7.00% |
Trench safety equipment | Trench, power and fluid solutions | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 6.00% | 6.00% | 6.00% |
Fluid solutions equipment | Trench, power and fluid solutions | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 6.00% | 5.00% | 4.00% |
Segment Information (Financial
Segment Information (Financial information by segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 2,306 | $ 2,116 | $ 1,891 | $ 1,734 | $ 1,922 | $ 1,766 | $ 1,597 | $ 1,356 | $ 8,047 | $ 6,641 | $ 5,762 |
Depreciation and amortization | 1,671 | 1,383 | 1,245 | ||||||||
Gross profit | 998 | $ 938 | $ 782 | $ 646 | 827 | $ 773 | $ 655 | $ 514 | 3,364 | 2,769 | 2,403 |
Capital expenditures | 2,291 | 1,889 | 1,339 | ||||||||
Total assets | 18,133 | 15,030 | 18,133 | 15,030 | 11,988 | ||||||
General rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,550 | 5,565 | 4,908 | ||||||||
Depreciation and amortization | 1,410 | 1,188 | 1,066 | ||||||||
Capital expenditures | 1,980 | 1,675 | 1,189 | ||||||||
Total assets | 15,597 | 13,351 | 15,597 | 13,351 | 10,496 | ||||||
Trench, power and fluid solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,497 | 1,076 | 854 | ||||||||
Depreciation and amortization | 261 | 195 | 179 | ||||||||
Capital expenditures | 311 | 214 | 150 | ||||||||
Total assets | $ 2,536 | $ 1,679 | 2,536 | 1,679 | 1,492 | ||||||
Total equipment rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,940 | 5,715 | 4,941 | ||||||||
Total equipment rentals | General rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 5,550 | 4,727 | 4,166 | ||||||||
Total equipment rentals | Trench, power and fluid solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,390 | 988 | 775 | ||||||||
Sales of rental equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 664 | 550 | 496 | ||||||||
Sales of rental equipment | General rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 619 | 509 | 459 | ||||||||
Sales of rental equipment | Trench, power and fluid solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 45 | 41 | 37 | ||||||||
Sales of new equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 208 | 178 | 144 | ||||||||
Sales of new equipment | General rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 186 | 159 | 128 | ||||||||
Sales of new equipment | Trench, power and fluid solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 22 | 19 | 16 | ||||||||
Contractor supplies sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 91 | 80 | 79 | ||||||||
Contractor supplies sales | General rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 68 | 65 | 64 | ||||||||
Contractor supplies sales | Trench, power and fluid solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 23 | 15 | 15 | ||||||||
Service and other revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 144 | 118 | 102 | ||||||||
Service and other revenues | General rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 127 | 105 | 91 | ||||||||
Service and other revenues | Trench, power and fluid solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 17 | 13 | 11 | ||||||||
Equipment rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | 2,963 | 2,440 | 2,089 | ||||||||
Equipment rentals | General rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | 2,293 | 1,950 | 1,725 | ||||||||
Equipment rentals | Trench, power and fluid solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | $ 670 | $ 490 | $ 364 |
Segment Information (Reconcilia
Segment Information (Reconciliation to consolidated totals) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross profit | $ 998 | $ 938 | $ 782 | $ 646 | $ 827 | $ 773 | $ 655 | $ 514 | $ 3,364 | $ 2,769 | $ 2,403 |
Selling, general and administrative expenses | (1,038) | (903) | (719) | ||||||||
Merger related costs | (22) | (18) | (36) | (50) | 0 | ||||||
Restructuring charge | $ (16) | $ (22) | (31) | (50) | (14) | ||||||
Non-rental depreciation and amortization | (308) | (259) | (255) | ||||||||
Interest expense, net | (481) | (464) | (511) | ||||||||
Other income, net | 6 | 5 | 5 | ||||||||
Income before provision (benefit) for income taxes | 1,476 | 1,048 | 909 | ||||||||
Equipment rentals | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross profit | 2,963 | 2,440 | 2,089 | ||||||||
Other products and services | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross profit | $ 401 | $ 329 | $ 314 |
Segment Information (Geographic
Segment Information (Geographic area information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 2,306 | $ 2,116 | $ 1,891 | $ 1,734 | $ 1,922 | $ 1,766 | $ 1,597 | $ 1,356 | $ 8,047 | $ 6,641 | $ 5,762 |
Rental equipment, net | 9,600 | 7,824 | 9,600 | 7,824 | |||||||
Property and equipment, net | 614 | 467 | 614 | 467 | |||||||
Goodwill and other intangibles, net | 6,142 | 4,957 | 6,142 | 4,957 | |||||||
Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 7,387 | 6,076 | 5,252 | ||||||||
Rental equipment, net | 8,910 | 7,264 | 8,910 | 7,264 | |||||||
Property and equipment, net | 559 | 425 | 559 | 425 | |||||||
Goodwill and other intangibles, net | 5,665 | 4,642 | 5,665 | 4,642 | |||||||
Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 660 | 565 | 510 | ||||||||
Rental equipment, net | 690 | 560 | 690 | 560 | |||||||
Property and equipment, net | 55 | 42 | 55 | 42 | |||||||
Goodwill and other intangibles, net | $ 477 | $ 315 | 477 | 315 | |||||||
Total equipment rentals | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 6,940 | 5,715 | 4,941 | ||||||||
Total equipment rentals | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 6,388 | 5,253 | 4,524 | ||||||||
Total equipment rentals | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 552 | 462 | 417 | ||||||||
Sales of rental equipment | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 664 | 550 | 496 | ||||||||
Sales of rental equipment | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 609 | 494 | 444 | ||||||||
Sales of rental equipment | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 55 | 56 | 52 | ||||||||
Sales of new equipment | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 208 | 178 | 144 | ||||||||
Sales of new equipment | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 184 | 157 | 129 | ||||||||
Sales of new equipment | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 24 | 21 | 15 | ||||||||
Contractor supplies sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 91 | 80 | 79 | ||||||||
Contractor supplies sales | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 80 | 70 | 68 | ||||||||
Contractor supplies sales | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 11 | 10 | 11 | ||||||||
Service and other revenues | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 144 | 118 | 102 | ||||||||
Service and other revenues | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 126 | 102 | 87 | ||||||||
Service and other revenues | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | $ 18 | $ 16 | $ 15 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2017work_stream | Dec. 31, 2018USD ($)restructuring_program | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges incurred to date | $ 315 | |
Closed Restructuring Programs | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of restructuring programs | restructuring_program | 3 | |
Restructuring charges incurred to date | $ 237 | |
Closed Restructuring Programs | Branch closure charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges incurred to date | 163 | |
Closed Restructuring Programs | Severance and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges incurred to date | 74 | |
NES, Neff And Project XL Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges incurred to date | 56 | |
Number of specific work streams | work_stream | 8 | |
NES, Neff And Project XL Restructuring Program | Branch closure charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges incurred to date | 9 | |
NES, Neff And Project XL Restructuring Program | Severance and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges incurred to date | $ 47 |
Restructuring Charges (Schedule
Restructuring Charges (Schedule Of Restructuring Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||||
Charged to Costs and Expenses | $ 16 | $ 22 | $ 31 | $ 50 | $ 14 |
Closed Restructuring Programs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Reserve Balance | 13 | 17 | 16 | ||
Charged to Costs and Expenses | 1 | 2 | 14 | ||
Payments and Other | (6) | (6) | (13) | ||
Ending Reserve Balance | 8 | 13 | 8 | 13 | 17 |
Closed Restructuring Programs | Branch closure charges | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Reserve Balance | 13 | 16 | 13 | ||
Charged to Costs and Expenses | 1 | 2 | 10 | ||
Payments and Other | (6) | (5) | (7) | ||
Ending Reserve Balance | 8 | 13 | 8 | 13 | 16 |
Closed Restructuring Programs | Severance and other | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Reserve Balance | 0 | 1 | 3 | ||
Charged to Costs and Expenses | 0 | 0 | 4 | ||
Payments and Other | 0 | (1) | (6) | ||
Ending Reserve Balance | 0 | 0 | 0 | 0 | 1 |
NES, Neff And Project XL Restructuring Program | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Reserve Balance | 20 | 0 | |||
Charged to Costs and Expenses | 8 | 48 | |||
Payments and Other | (17) | (28) | |||
Ending Reserve Balance | 11 | 20 | 11 | 20 | 0 |
NES, Neff And Project XL Restructuring Program | Branch closure charges | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Reserve Balance | 8 | 0 | |||
Charged to Costs and Expenses | 0 | 9 | |||
Payments and Other | (4) | (1) | |||
Ending Reserve Balance | 4 | 8 | 4 | 8 | 0 |
NES, Neff And Project XL Restructuring Program | Severance and other | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Reserve Balance | 12 | 0 | |||
Charged to Costs and Expenses | 8 | 39 | |||
Payments and Other | (13) | (27) | |||
Ending Reserve Balance | 7 | 12 | 7 | 12 | $ 0 |
BakerCorp/BlueLine Restructuring Program | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Reserve Balance | 0 | ||||
Charged to Costs and Expenses | 22 | ||||
Payments and Other | (10) | ||||
Ending Reserve Balance | 12 | 0 | 12 | 0 | |
BakerCorp/BlueLine Restructuring Program | Branch closure charges | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Reserve Balance | 0 | ||||
Charged to Costs and Expenses | 4 | ||||
Payments and Other | (1) | ||||
Ending Reserve Balance | 3 | 0 | 3 | 0 | |
BakerCorp/BlueLine Restructuring Program | Severance and other | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Reserve Balance | 0 | ||||
Charged to Costs and Expenses | 18 | ||||
Payments and Other | (9) | ||||
Ending Reserve Balance | $ 9 | $ 0 | $ 9 | $ 0 |
Rental Equipment (Details)
Rental Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Leases, Operating [Abstract] | ||
Rental equipment | $ 13,962 | $ 11,571 |
Less accumulated depreciation | (4,362) | (3,747) |
Rental equipment, net | $ 9,600 | $ 7,824 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,227 | $ 1,004 |
Less accumulated depreciation and amortization | (613) | (537) |
Property and equipment, net | 614 | 467 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 103 | 102 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 277 | 238 |
Non-rental vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 200 | 112 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 135 | 103 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 240 | 204 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 272 | $ 245 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||||
Balance at beginning of period | $ 4,082 | $ 3,260 | $ 3,243 | |
Goodwill related to acquisitions | 999 | 805 | 9 | |
Foreign currency translation and other adjustments | (23) | 17 | 8 | |
Balance at end of period | 5,058 | 4,082 | 3,260 | |
Goodwill accumulated impairment loss | 1,557 | 1,557 | 1,557 | $ 1,557 |
General rentals | ||||
Goodwill [Roll Forward] | ||||
Balance at beginning of period | 3,607 | 2,797 | 2,786 | |
Goodwill related to acquisitions | 752 | 797 | 5 | |
Foreign currency translation and other adjustments | (17) | 13 | 6 | |
Balance at end of period | 4,342 | 3,607 | 2,797 | |
Trench, power and fluid solutions | ||||
Goodwill [Roll Forward] | ||||
Balance at beginning of period | 475 | 463 | 457 | |
Goodwill related to acquisitions | 247 | 8 | 4 | |
Foreign currency translation and other adjustments | (6) | 4 | 2 | |
Balance at end of period | $ 716 | $ 475 | $ 463 | |
Trademarks and Trade Names [Member] | ||||
Goodwill [Line Items] | ||||
Weighted-Average Remaining Amortization Period | 5 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net Amount | $ 1,084,000,000 | $ 875,000,000 | |
Amortization expense | 213,000,000 | 173,000,000 | $ 174,000,000 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,019 | 268,000,000 | ||
2,020 | 232,000,000 | ||
2,021 | 190,000,000 | ||
2,022 | 149,000,000 | ||
2,023 | 106,000,000 | ||
Thereafter | 139,000,000 | ||
Net Amount | $ 1,084,000,000 | $ 875,000,000 | |
Non-compete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Amortization Period | 31 months | 31 months | |
Gross Carrying Amount | $ 24,000,000 | $ 71,000,000 | |
Accumulated Amortization | 16,000,000 | 62,000,000 | |
Net Amount | 8,000,000 | 9,000,000 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net Amount | $ 8,000,000 | $ 9,000,000 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Amortization Period | 7 years | 9 years | |
Gross Carrying Amount | $ 2,148,000,000 | $ 1,750,000,000 | |
Accumulated Amortization | 1,076,000,000 | 884,000,000 | |
Net Amount | 1,072,000,000 | 866,000,000 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net Amount | $ 1,072,000,000 | $ 866,000,000 | |
Trade names and associated trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Amortization Period | 5 years | ||
Gross Carrying Amount | $ 5,000,000 | ||
Accumulated Amortization | 1,000,000 | ||
Net Amount | 4,000,000 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net Amount | 4,000,000 | ||
BakerCorp and BlueLine | |||
Finite-Lived Intangible Assets [Line Items] | |||
Residual value | $ 0 | ||
BakerCorp | Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Amortization Period | 7 years | ||
Net Amount | $ 149,000,000 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net Amount | $ 149,000,000 | ||
BakerCorp | Trade names and associated trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Amortization Period | 5 years | ||
Net Amount | $ 4,000,000 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net Amount | $ 4,000,000 | ||
BlueLine | Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Remaining Amortization Period | 5 years | ||
Net Amount | $ 217,000,000 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net Amount | $ 217,000,000 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued expenses and other liabilities | ||
Self-insurance accruals | $ 46 | $ 42 |
Accrued compensation and benefit costs | 127 | 128 |
Property and income taxes payable | 103 | 25 |
Restructuring reserves | 31 | 33 |
Interest payable | 147 | 131 |
Deferred revenue | 56 | 46 |
National accounts accrual | 69 | 50 |
Other | 98 | 81 |
Accrued expenses and other liabilities | 677 | 536 |
Other long-term liabilities | ||
Self-insurance accruals | 60 | 58 |
Income taxes payable | 14 | 52 |
Accrued compensation and benefit costs | 9 | 10 |
Other long-term liabilities | $ 83 | $ 120 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments) (Details) - Senior and senior subordinated notes - Level 1 - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument | $ 8,102 | $ 7,008 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument | $ 7,632 | $ 7,340 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Oct. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Aug. 31, 2017 | Mar. 01, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | May 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2008 | |
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 11,747,000,000 | $ 9,440,000,000 | ||||||||||
Capital Lease Obligations | 122,000,000 | 67,000,000 | ||||||||||
Less short-term portion | (903,000,000) | (723,000,000) | ||||||||||
Long-term debt | 10,844,000,000 | 8,717,000,000 | ||||||||||
Line of credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||||||||||
Accounts receivable securitization facility expiring 2019 | Line of credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | 850,000,000 | 695,000,000 | ||||||||||
Borrowing capacity, net of letters of credit | $ 125,000,000 | |||||||||||
Interest rate at December 31, 2018 | 3.30% | |||||||||||
Average month-end debt outstanding | $ 796,000,000 | |||||||||||
Weighted-average interest rate on average debt outstanding | 2.90% | |||||||||||
Maximum month-end debt outstanding | $ 870,000,000 | |||||||||||
Line of credit facility, maximum borrowing capacity | 975,000,000 | |||||||||||
$3.0 billion ABL Facility | Line of credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | 1,685,000,000 | 1,670,000,000 | ||||||||||
Borrowing capacity, net of letters of credit | 1,264,000,000 | |||||||||||
Letters of credit | $ 45,000,000 | |||||||||||
Interest rate at December 31, 2018 | 4.00% | |||||||||||
Line of credit facility, average month-end debt outstanding | $ 1,607,000,000 | |||||||||||
Line of credit facility, interest rate on average debt outstanding | 3.50% | |||||||||||
Line of credit facility, maximum month-end outstanding amount | $ 2,189,000,000 | |||||||||||
Line of credit facility, maximum borrowing capacity | 3,000,000,000 | $ 1,250,000,000 | ||||||||||
Term loan facility expiring 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 988,000,000 | 0 | ||||||||||
Debt repayment installment rate | 1.00% | |||||||||||
Term loan facility expiring 2025 | Line of credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing capacity, net of letters of credit | $ 0 | |||||||||||
Interest rate at December 31, 2018 | 4.30% | |||||||||||
Average month-end debt outstanding | $ 999,000,000 | |||||||||||
Weighted-average interest rate on average debt outstanding | 4.10% | |||||||||||
Maximum month-end debt outstanding | $ 1,000,000,000 | |||||||||||
4 5/8 percent Senior Secured Notes due 2023 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 994,000,000 | 992,000,000 | ||||||||||
Stated interest rate | 4.625% | |||||||||||
5 3/4 percent Senior Notes due 2024 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 842,000,000 | 841,000,000 | ||||||||||
Stated interest rate | 5.75% | |||||||||||
5 1/2 percent Senior Notes due 2025 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 794,000,000 | 793,000,000 | ||||||||||
Stated interest rate | 5.50% | |||||||||||
4 5/8 percent Senior Notes due 2025 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 741,000,000 | 740,000,000 | ||||||||||
Stated interest rate | 4.625% | |||||||||||
5 7/8 percent Senior Notes due 2026 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 999,000,000 | 998,000,000 | ||||||||||
Stated interest rate | 5.875% | |||||||||||
6 1/2 percent Senior Notes due 2026 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 1,087,000,000 | 0 | ||||||||||
Stated interest rate | 6.50% | |||||||||||
5 1/2 percent Senior Notes due 2027 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 991,000,000 | 990,000,000 | ||||||||||
Stated interest rate | 5.50% | |||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 1,650,000,000 | 1,648,000,000 | ||||||||||
Stated interest rate | 4.875% | |||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 4,000,000 | $ 6,000,000 | ||||||||||
Stated interest rate | 4.875% | |||||||||||
United Rentals (North America), Inc. | 4 5/8 percent Senior Secured Notes due 2023 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||||||
United Rentals (North America), Inc. | 5 3/4 percent Senior Notes due 2024 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 850,000,000 | |||||||||||
United Rentals (North America), Inc. | 5 1/2 percent Senior Notes due 2025 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 800,000,000 | |||||||||||
United Rentals (North America), Inc. | 4 5/8 percent Senior Notes due 2025 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||
United Rentals (North America), Inc. | 5 7/8 percent Senior Notes due 2026 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 250,000,000 | $ 750,000,000 | ||||||||||
United Rentals (North America), Inc. | 6 1/2 percent Senior Notes due 2026 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,100,000,000 | |||||||||||
United Rentals (North America), Inc. | 5 1/2 percent Senior Notes due 2027 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | $ 250,000,000 | $ 750,000,000 | |||||||||
United Rentals (North America), Inc. | 4 7/8 percent Senior Notes due 2028 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 925,000,000 | |||||||||||
United Rentals (North America), Inc. | 4 7/8 percent Senior Notes due 2028 | Senior notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 750,000,000 |
Debt (Short Term Debt Narrative
Debt (Short Term Debt Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 11,747,000,000 | $ 9,440,000,000 |
Line of credit | Accounts receivable securitization facility expiring 2019 | ||
Short-term Debt [Line Items] | ||
Short-term debt | 850,000,000 | $ 695,000,000 |
Average month-end debt outstanding | $ 796,000,000 | |
Weighted-average interest rate on average debt outstanding | 2.90% | |
Maximum month-end debt outstanding | $ 870,000,000 | |
Line of credit facility, maximum borrowing capacity | $ 975,000,000 | |
Extension period | 364 days | |
Collateral amount | $ 1,158,000,000 |
Debt (Long Term Debt Narrative)
Debt (Long Term Debt Narrative) (Details) - USD ($) | 1 Months Ended | 4 Months Ended | 10 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2018 | Sep. 30, 2017 | Aug. 31, 2017 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2008 | Feb. 28, 2017 | Feb. 28, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 01, 2017 | Nov. 30, 2016 | May 31, 2016 | |
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 11,834,000,000 | ||||||||||||
Line of credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||||||||||
$3.0 billion ABL Facility | Line of credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, term | 5 years | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | 3,000,000,000 | |||||||||||
Line of credit facility, average month-end debt outstanding | $ 1,607,000,000 | ||||||||||||
Line of credit facility, interest rate on average debt outstanding | 3.50% | ||||||||||||
Line of credit facility, maximum month-end outstanding amount | $ 2,189,000,000 | ||||||||||||
Maximum revolving credit amount percentage | 10.00% | ||||||||||||
4 5/8 percent Senior Secured Notes due 2023 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from debt, net of issuance costs | $ 990,000,000 | ||||||||||||
4 5/8 percent Senior Secured Notes due 2023 | Senior notes | Period commencing in 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 103.469% | ||||||||||||
4 5/8 percent Senior Secured Notes due 2023 | Senior notes | Period commencing in 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 100.00% | ||||||||||||
4 5/8 percent Senior Secured Notes due 2023 | Senior notes | In the event of change of control | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||
5 3/4 percent Senior Notes | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from debt, net of issuance costs | $ 837,000,000 | ||||||||||||
5 3/4 percent Senior Notes | Senior notes | In the event of change of control | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||
5 3/4 percent Senior Notes | Senior notes | Period commencing in 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 102.875% | ||||||||||||
5 3/4 percent Senior Notes | Senior notes | Period commencing in 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 100.00% | ||||||||||||
5 1/2 percent Senior Notes due 2025 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from debt, net of issuance costs | $ 792,000,000 | ||||||||||||
5 1/2 percent Senior Notes due 2025 | Senior notes | In the event of change of control | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||
5 1/2 percent Senior Notes due 2025 | Senior notes | Period commencing in 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 102.75% | ||||||||||||
5 1/2 percent Senior Notes due 2025 | Senior notes | Period commencing in 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 100.00% | ||||||||||||
4 5/8 percent Senior Notes due 2025 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from debt, net of issuance costs | $ 741,000,000 | ||||||||||||
4 5/8 percent Senior Notes due 2025 | Senior notes | In the event of change of control | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||
4 5/8 percent Senior Notes due 2025 | Senior notes | Period commencing in 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 100.00% | ||||||||||||
4 5/8 percent Senior Notes due 2025 | Senior notes | Period commencing in 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 102.313% | ||||||||||||
5 7/8 percent Senior Notes due 2026 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from debt, net of issuance costs | $ 999,000,000 | ||||||||||||
Outstanding principal amount of debt | $ 1,000,000,000 | ||||||||||||
Debt instrument, unamortized premium | $ 10,000,000 | ||||||||||||
Effective interest rate | 5.70% | ||||||||||||
5 7/8 percent Senior Notes due 2026 | Senior notes | Period commencing in 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 102.938% | ||||||||||||
5 7/8 percent Senior Notes due 2026 | Senior notes | In the event of change of control | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||
5 7/8 percent Senior Notes due 2026 | Senior notes | Period commencing in 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 100.00% | ||||||||||||
6 1/2 percent Senior Notes due 2026 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from debt, net of issuance costs | $ 1,089,000,000 | ||||||||||||
6 1/2 percent Senior Notes due 2026 | Senior notes | Period commencing in 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 103.25% | ||||||||||||
6 1/2 percent Senior Notes due 2026 | Senior notes | In the event of change of control | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||
6 1/2 percent Senior Notes due 2026 | Senior notes | Period commencing in 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 100.00% | ||||||||||||
5 1/2 percent Senior Notes due 2027 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from debt, net of issuance costs | $ 991,000,000 | ||||||||||||
Debt instrument, unamortized premium | $ 3,000,000 | ||||||||||||
Effective interest rate | 5.50% | ||||||||||||
5 1/2 percent Senior Notes due 2027 | Senior notes | In the event of change of control | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||
5 1/2 percent Senior Notes due 2027 | Senior notes | Period commencing in 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 102.75% | ||||||||||||
5 1/2 percent Senior Notes due 2027 | Senior notes | Period commencing in 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 100.00% | ||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from debt, net of issuance costs | $ 913,000,000 | ||||||||||||
Debt instrument, unamortized premium | $ 2,000,000 | ||||||||||||
Effective interest rate | 4.86% | ||||||||||||
Long-term debt | $ 1,669,000,000 | ||||||||||||
Amount exchanged for equivalent notes | $ 744,000,000 | ||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | In the event of change of control | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | Period commencing in 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 102.438% | ||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | Period commencing in 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 100.00% | ||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from debt, net of issuance costs | $ 743,000,000 | ||||||||||||
Effective interest rate | 4.84% | ||||||||||||
Long-term debt | $ 4,000,000 | ||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | In the event of change of control | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 101.00% | ||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | Period commencing in 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 102.438% | ||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | Period commencing in 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption percentage | 100.00% | ||||||||||||
United Rentals (North America), Inc. | 4 5/8 percent Senior Secured Notes due 2023 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | ||||||||||||
United Rentals (North America), Inc. | 5 3/4 percent Senior Notes | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 850,000,000 | ||||||||||||
United Rentals (North America), Inc. | 5 1/2 percent Senior Notes due 2025 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 800,000,000 | ||||||||||||
United Rentals (North America), Inc. | 4 5/8 percent Senior Notes due 2025 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||||||
United Rentals (North America), Inc. | 5 7/8 percent Senior Notes due 2026 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 250,000,000 | $ 250,000,000 | $ 750,000,000 | ||||||||||
United Rentals (North America), Inc. | 6 1/2 percent Senior Notes due 2026 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 1,100,000,000 | ||||||||||||
United Rentals (North America), Inc. | 5 1/2 percent Senior Notes due 2027 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 250,000,000 | $ 250,000,000 | $ 1,000,000,000 | $ 750,000,000 | |||||||||
United Rentals (North America), Inc. | 4 7/8 percent Senior Notes due 2028 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 925,000,000 | ||||||||||||
United Rentals (North America), Inc. | 4 7/8 percent Senior Notes due 2028 | Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||||||
London Interbank Offered Rate (LIBOR) | Term loan facility expiring 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 1.75% | ||||||||||||
Base Rate | Term loan facility expiring 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 0.75% |
Debt (Schedule of Debt Maturity
Debt (Schedule of Debt Maturity) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Maturity profile: | |
2,019 | $ 903 |
2,020 | 42 |
2,021 | 1,733 |
2,022 | 19 |
2,023 | 1,011 |
Thereafter | 8,126 |
Total | $ 11,834 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Income before income taxes, foreign | $ 71 | $ 48 | $ 29 |
Tax Cuts And Jobs Act Of 2017 transition tax | 62 | ||
Undistributed earnings of foreign subsidiaries amount | 651 | ||
Valuation allowance | 46 | 39 | |
Operating loss carryforwards utilized during period | 386 | ||
Federal Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 1,468 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 1,180 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 29 | ||
Tax credit carryforward | $ 32 | $ 26 |
Income Taxes (Impact of Account
Income Taxes (Impact of Accounting for the Enactment of the Tax Act) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Revaluation of deferred tax balances | $ 1 | $ (746) | |
One-time transition tax | 5 | 57 | |
Total provision (benefit) for income taxes impact | $ (689) | $ 6 | $ (689) |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||
Federal | $ 47 | $ 190 | $ 186 |
Foreign | 18 | 15 | 10 |
State and local | 58 | 30 | 24 |
Current income tax expense | 123 | 235 | 220 |
Deferred | |||
Federal | 243 | (580) | 119 |
Foreign | 3 | (2) | (1) |
State and local | 11 | 49 | 5 |
Deferred income tax expense (benefit) | 257 | (533) | 123 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Computed tax at statutory tax rate | 310 | 367 | 318 |
State income taxes, net of federal tax benefit | 54 | 34 | 21 |
Non-deductible expenses and other | 6 | (3) | 9 |
Enactment of the Tax Act | 6 | (689) | 0 |
Foreign taxes | 4 | (7) | (5) |
Total | $ 380 | $ (298) | $ 343 |
Income Taxes (Components of def
Income Taxes (Components of deferred tax assets and liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Reserves and allowances | $ 126 | $ 87 |
Debt cancellation and other | 11 | 13 |
Net operating loss and credit carryforwards | 435 | 192 |
Total deferred tax assets | 572 | 292 |
Property and equipment | (1,976) | (1,498) |
Intangibles | (237) | (174) |
Valuation allowance | (46) | (39) |
Total deferred tax liability | (2,259) | (1,711) |
Total deferred income tax liability | $ (1,687) | $ (1,419) |
Commitments and Contingencies_2
Commitments and Contingencies (Future Minimum Operating Lease Payments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Total | $ 707 | ||
Operating leases, rent expense | 179 | $ 160 | $ 149 |
Real Estate Leases | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,019 | 148 | ||
2,020 | 125 | ||
2,021 | 102 | ||
2,022 | 71 | ||
2,023 | 43 | ||
Thereafter | 47 | ||
Total | 536 | ||
Equipment Leases | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,019 | 45 | ||
2,020 | 39 | ||
2,021 | 30 | ||
2,022 | 23 | ||
2,023 | 17 | ||
Thereafter | 17 | ||
Total | $ 171 |
Commitments and Contingencies_3
Commitments and Contingencies (Capital Lease Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capital Leased Assets [Line Items] | |||
Debt and capital lease obligations | $ 122 | $ 67 | |
Less accumulated depreciation and amortization | (12) | (14) | |
Property and equipment, net | 10 | 9 | |
Rental Equipment | |||
Capital Leased Assets [Line Items] | |||
Depreciation and amortization | 22 | 21 | $ 20 |
Capital leased assets | 257 | 203 | |
Less accumulated depreciation and amortization | (86) | (80) | |
Property and equipment, net | 171 | 123 | |
Non-rental Equipment | |||
Capital Leased Assets [Line Items] | |||
Depreciation and amortization | 1 | 2 | $ 3 |
Non-rental vehicles | |||
Capital Leased Assets [Line Items] | |||
Capital leased assets | 6 | 2 | |
Buildings | |||
Capital Leased Assets [Line Items] | |||
Capital leased assets | $ 16 | $ 21 |
Commitments and Contingencies_4
Commitments and Contingencies (Future Minimum Capital Lease Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,019 | $ 47 |
2,020 | 34 |
2,021 | 33 |
2,022 | 9 |
2,023 | 2 |
Thereafter | 6 |
Total | 131 |
Less amount representing interest | (9) |
Capital lease obligations | $ 122 |
Capital leases | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Weighted average interest rate | 4.70% |
Commitments and Contingencies_5
Commitments and Contingencies (Employee Benefits Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)plans | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Number of defined contribution 401 (k) plans | plans | 3 | ||
Defined contribution plan, contributions | $ | $ 31 | $ 26 | $ 23 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | |
Class of Stock [Line Items] | |||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Employee stock option | |||
Class of Stock [Line Items] | |||
Common stock, capital shares reserved for future issuance (in shares) | 500,000 | 500,000 | |
Restricted Stock Units (RSUs) | |||
Class of Stock [Line Items] | |||
Restricted stock units outstanding (in shares) | 1,000,000 | ||
Share conversion ratio | 1 | ||
Shares issued for RSUs (in shares) | 428,000 | ||
Shares paid for tax withholding (in shares) | 280,000 | ||
Compensation expense not yet recognized | $ | $ 42 | ||
Compensation expense not yet recognized, period for recognition | 1 year 10 months 24 days | ||
Fair value of RSUs vested during the period | $ | $ 114 | $ 101 | $ 39 |
Time-based Restricted Stock Units | |||
Class of Stock [Line Items] | |||
Vesting period | 3 years | ||
Vesting period, start duration from grant date | 12 months | ||
2010 Long Term Incentive Plan | |||
Class of Stock [Line Items] | |||
Shares available for grant (in shares) | 2,000,000 |
Common Stock (Schedule of Stock
Common Stock (Schedule of Stock Option Activity) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Shares | |
Outstanding at beginning of period (in shares) | shares | 549 |
Granted (in shares) | shares | 0 |
Exercised (shares) | shares | (85) |
Canceled (in shares) | shares | (1) |
Outstanding at end of period (in shares) | shares | 463 |
Exercisable (in shares) | shares | 433 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 26.80 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 23.26 |
Canceled (in dollars per share) | $ / shares | 19.67 |
Outstanding at end of period (in dollars per share) | $ / shares | 27.47 |
Exercisable (in dollars per share) | $ / shares | $ 25.38 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value of options outstanding as of December 31 | $ 35 | $ 80 | |
Intrinsic value of options exercisable as of December 31 | 33 | 72 | |
Intrinsic value of options exercised | $ 13 | $ 6 | $ 4 |
Weighted-average grant date fair value per option (in dollars per share) | $ 0 | $ 84.60 | $ 0 |
Common Stock (Schedule of Restr
Common Stock (Schedule of Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Units | |||
Nonvested as of December 31, 2017 (in shares) | 756 | ||
Granted (in shares) | 566 | 809 | 901 |
Vested (in shares) | (638) | ||
Forfeited (in shares) | (35) | ||
Nonvested as of December 31, 2018 (in shares) | 649 | 756 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested as of December 31, 2017 (in dollars per share) | $ 94.07 | ||
Granted (in dollars per share) | 175.79 | $ 130.96 | $ 60.55 |
Vested (in dollars per share) | 141.89 | ||
Forfeited (in dollars per share) | 132.14 | ||
Nonvested as of December 31, 2018 (in dollars per share) | $ 116.26 | $ 94.07 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenues | $ 2,306,000,000 | $ 2,116,000,000 | $ 1,891,000,000 | $ 1,734,000,000 | $ 1,922,000,000 | $ 1,766,000,000 | $ 1,597,000,000 | $ 1,356,000,000 | $ 8,047,000,000 | $ 6,641,000,000 | $ 5,762,000,000 |
Gross profit | 998,000,000 | 938,000,000 | 782,000,000 | 646,000,000 | 827,000,000 | 773,000,000 | 655,000,000 | 514,000,000 | 3,364,000,000 | 2,769,000,000 | 2,403,000,000 |
Operating income | 563,000,000 | 578,000,000 | 470,000,000 | 340,000,000 | 462,000,000 | 448,000,000 | 340,000,000 | 257,000,000 | 1,951,000,000 | 1,507,000,000 | 1,415,000,000 |
Net income | $ 310,000,000 | $ 333,000,000 | $ 270,000,000 | $ 183,000,000 | $ 897,000,000 | $ 199,000,000 | $ 141,000,000 | $ 109,000,000 | $ 1,096,000,000 | $ 1,346,000,000 | $ 566,000,000 |
Earnings per share - basic (in dollars per share) | $ 3.84 | $ 4.05 | $ 3.22 | $ 2.18 | $ 10.60 | $ 2.36 | $ 1.67 | $ 1.29 | $ 13.26 | $ 15.91 | $ 6.49 |
Earnings per share - diluted (in dollars per share) | $ 3.80 | 4.01 | 3.20 | 2.15 | $ 10.45 | 2.33 | 1.65 | 1.27 | $ 13.12 | $ 15.73 | $ 6.45 |
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Benefit of Tax Cuts and Jobs Act of 2017 | $ 689,000,000 | $ (6,000,000) | $ 689,000,000 | ||||||||
Effect on Tax Cuts and Jobs Act of 2017 on diluted earnings per share (in dollars per share) | $ 8.03 | $ 8.05 | |||||||||
Merger related costs | $ 22,000,000 | $ 18,000,000 | 36,000,000 | $ 50,000,000 | $ 0 | ||||||
Restructuring charge | $ 16,000,000 | 22,000,000 | 31,000,000 | 50,000,000 | 14,000,000 | ||||||
Loss on extinguishment of debt | $ 0 | $ 54,000,000 | $ 101,000,000 | ||||||||
Increase in stock compensation, net | $ 11,000,000 | ||||||||||
Earnings Per Share, Diluted, Other Disclosures [Abstract] | |||||||||||
Merger related costs (in dollars per share) | $ (0.21) | (0.09) | (0.02) | (0.01) | $ (0.13) | (0.12) | (0.09) | (0.02) | $ (0.32) | $ (0.36) | |
Merger related intangible asset amortization (in dollars per share) | (0.58) | (0.42) | (0.37) | (0.39) | (0.32) | (0.27) | (0.30) | (0.28) | (1.76) | (1.15) | |
Impact on depreciation related to acquired fleet and property and equipment (in dollars per share) | 0 | (0.02) | (0.08) | (0.09) | (0.01) | (0.07) | 0.03 | 0 | (0.19) | (0.05) | |
Impact of the fair value mark-up of acquired fleet (in dollars per share) | (0.11) | (0.11) | (0.15) | (0.21) | (0.23) | (0.17) | (0.13) | (0.06) | (0.59) | (0.59) | |
Restructuring charge (in dollars per share) | $ (0.15) | $ (0.09) | $ (0.03) | $ (0.02) | (0.15) | (0.07) | (0.14) | 0 | $ (0.28) | (0.36) | |
Asset impairment charge (in dollars per share) | 0 | 0 | 0 | 0 | (0.01) | ||||||
Loss on extinguishment of debt securities and amendment of ABL facility (in dollars per share) | $ (0.08) | $ (0.22) | $ (0.09) | $ 0 | $ (0.39) | ||||||
Senior notes | 7 5/8 percent Senior Notes | |||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Redemption of principal amount of debt | $ 225,000,000 | $ 225,000,000 | |||||||||
Stated interest rate | 7.625% | 7.625% | |||||||||
Loss on extinguishment of debt | $ 11,000,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income available to common stockholders | $ 1,096 | $ 1,346 | $ 566 | ||||||||
Denominator: | |||||||||||
Denominator for basic earnings per share—weighted-average common shares (in shares) | 82,652 | 84,599 | 87,217 | ||||||||
Effect of dilutive securities: | |||||||||||
Denominator for diluted earnings per share—adjusted weighted-average common shares (in shares) | 83,530 | 85,562 | 87,775 | ||||||||
Basic earnings per share (in dollars per share) | $ 3.84 | $ 4.05 | $ 3.22 | $ 2.18 | $ 10.60 | $ 2.36 | $ 1.67 | $ 1.29 | $ 13.26 | $ 15.91 | $ 6.49 |
Diluted earnings per share (in dollars per share) | $ 3.80 | $ 4.01 | $ 3.20 | $ 2.15 | $ 10.45 | $ 2.33 | $ 1.65 | $ 1.27 | $ 13.12 | $ 15.73 | $ 6.45 |
Employee stock options and warrants | |||||||||||
Effect of dilutive securities: | |||||||||||
Share-based payment arrangements (in shares) | 379 | 403 | 277 | ||||||||
Restricted stock units | |||||||||||
Effect of dilutive securities: | |||||||||||
Share-based payment arrangements (in shares) | 499 | 560 | 281 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING BALANCE SHEETS (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 43 | $ 352 | $ 312 | $ 179 |
Accounts receivable, net | 1,545 | 1,233 | ||
Intercompany receivable (payable) | 0 | 0 | ||
Inventory | 109 | 75 | ||
Prepaid expenses and other assets | 64 | 112 | ||
Total current assets | 1,761 | 1,772 | ||
Rental equipment, net | 9,600 | 7,824 | ||
Property and equipment, net | 614 | 467 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 5,058 | 4,082 | 3,260 | 3,243 |
Other intangible assets, net | 1,084 | 875 | ||
Other long-term assets | 16 | 10 | ||
Total assets | 18,133 | 15,030 | 11,988 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 903 | 723 | ||
Accounts payable | 536 | 409 | ||
Accrued expenses and other liabilities | 677 | 536 | ||
Total current liabilities | 2,116 | 1,668 | ||
Long-term debt | 10,844 | 8,717 | ||
Deferred taxes | 1,687 | 1,419 | ||
Other long-term liabilities | 83 | 120 | ||
Total liabilities | 14,730 | 11,924 | ||
Total stockholders’ equity (deficit) | 3,403 | 3,106 | ||
Total liabilities and stockholders’ equity | 18,133 | 15,030 | ||
Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivable (payable) | 0 | 112 | ||
Inventory | 0 | 0 | ||
Prepaid expenses and other assets | 0 | (224) | ||
Total current assets | 0 | (112) | ||
Rental equipment, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Investments in subsidiaries | (4,452) | (4,429) | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | (4,452) | (4,541) | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Total stockholders’ equity (deficit) | (4,452) | (4,541) | ||
Total liabilities and stockholders’ equity | (4,452) | (4,541) | ||
Parent | Reportable Legal Entities | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivable (payable) | 1,534 | 887 | ||
Inventory | 0 | 0 | ||
Prepaid expenses and other assets | 0 | 4 | ||
Total current assets | 1,534 | 891 | ||
Rental equipment, net | 0 | 0 | ||
Property and equipment, net | 57 | 41 | ||
Investments in subsidiaries | 1,826 | 2,194 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other long-term assets | 9 | 3 | ||
Total assets | 3,426 | 3,129 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 1 | 1 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Total current liabilities | 1 | 1 | ||
Long-term debt | 0 | 1 | ||
Deferred taxes | 22 | 21 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 23 | 23 | ||
Total stockholders’ equity (deficit) | 3,403 | 3,106 | ||
Total liabilities and stockholders’ equity | 3,426 | 3,129 | ||
URNA | Reportable Legal Entities | ||||
ASSETS | ||||
Cash and cash equivalents | 1 | 23 | 21 | 18 |
Accounts receivable, net | 0 | 56 | ||
Intercompany receivable (payable) | (1,423) | (677) | ||
Inventory | 96 | 68 | ||
Prepaid expenses and other assets | 60 | 219 | ||
Total current assets | (1,266) | (311) | ||
Rental equipment, net | 8,910 | 7,264 | ||
Property and equipment, net | 462 | 352 | ||
Investments in subsidiaries | 1,646 | 1,148 | ||
Goodwill | 4,661 | 3,815 | ||
Other intangible assets, net | 1,004 | 827 | ||
Other long-term assets | 7 | 7 | ||
Total assets | 15,424 | 13,102 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 50 | 25 | ||
Accounts payable | 481 | 366 | ||
Accrued expenses and other liabilities | 619 | 477 | ||
Total current liabilities | 1,150 | 868 | ||
Long-term debt | 10,778 | 8,596 | ||
Deferred taxes | 1,587 | 1,324 | ||
Other long-term liabilities | 83 | 120 | ||
Total liabilities | 13,598 | 10,908 | ||
Total stockholders’ equity (deficit) | 1,826 | 2,194 | ||
Total liabilities and stockholders’ equity | 15,424 | 13,102 | ||
Guarantor Subsidiaries | Reportable Legal Entities | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivable (payable) | (96) | (198) | ||
Inventory | 0 | 0 | ||
Prepaid expenses and other assets | 0 | 111 | ||
Total current assets | (96) | (87) | ||
Rental equipment, net | 0 | 0 | ||
Property and equipment, net | 40 | 32 | ||
Investments in subsidiaries | 980 | 1,087 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 924 | 1,032 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 14 | 17 | ||
Total current liabilities | 14 | 17 | ||
Long-term debt | 9 | 117 | ||
Deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 23 | 134 | ||
Total stockholders’ equity (deficit) | 901 | 898 | ||
Total liabilities and stockholders’ equity | 924 | 1,032 | ||
Foreign | Reportable Legal Entities | ||||
ASSETS | ||||
Cash and cash equivalents | 42 | 329 | 291 | 161 |
Accounts receivable, net | 159 | 119 | ||
Intercompany receivable (payable) | (15) | (124) | ||
Inventory | 13 | 7 | ||
Prepaid expenses and other assets | 4 | 2 | ||
Total current assets | 203 | 333 | ||
Rental equipment, net | 690 | 560 | ||
Property and equipment, net | 55 | 42 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 397 | 267 | ||
Other intangible assets, net | 80 | 48 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 1,425 | 1,250 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 2 | 2 | ||
Accounts payable | 55 | 43 | ||
Accrued expenses and other liabilities | 42 | 41 | ||
Total current liabilities | 99 | 86 | ||
Long-term debt | 57 | 3 | ||
Deferred taxes | 78 | 74 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 234 | 163 | ||
Total stockholders’ equity (deficit) | 1,191 | 1,087 | ||
Total liabilities and stockholders’ equity | 1,425 | 1,250 | ||
SPV | Reportable Legal Entities | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 1,386 | 1,058 | ||
Intercompany receivable (payable) | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid expenses and other assets | 0 | 0 | ||
Total current assets | 1,386 | 1,058 | ||
Rental equipment, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 1,386 | 1,058 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Short-term debt and current maturities of long-term debt | 850 | 695 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 2 | 1 | ||
Total current liabilities | 852 | 696 | ||
Long-term debt | 0 | 0 | ||
Deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 852 | 696 | ||
Total stockholders’ equity (deficit) | 534 | 362 | ||
Total liabilities and stockholders’ equity | 1,386 | $ 1,058 | ||
ABL facility | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Line of credit facility, restricted payment capacity | 2,117 | |||
ABL facility | URNA | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Line of credit facility, restricted payment capacity | $ 583 | |||
Senior notes | 5 3/4 percent Senior Notes due 2024 | ||||
Condensed Financial Information Other Details [Abstract] | ||||
Stated interest rate | 5.75% |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING STATEMENTS OF INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues: | ||||||||||||
Revenues | $ 2,306 | $ 2,116 | $ 1,891 | $ 1,734 | $ 1,922 | $ 1,766 | $ 1,597 | $ 1,356 | $ 8,047 | $ 6,641 | $ 5,762 | |
Cost of equipment rentals, excluding depreciation | 2,614 | 2,151 | 1,862 | |||||||||
Depreciation of rental equipment | 1,363 | 1,124 | 990 | |||||||||
Total cost of revenues | 4,683 | 3,872 | 3,359 | |||||||||
Gross profit | 998 | 938 | 782 | 646 | 827 | 773 | 655 | 514 | 3,364 | 2,769 | 2,403 | |
Selling, general and administrative expenses | 1,038 | 903 | 719 | |||||||||
Merger related costs | 22 | 18 | 36 | 50 | 0 | |||||||
Restructuring charge | 16 | 22 | 31 | 50 | 14 | |||||||
Non-rental depreciation and amortization | 308 | 259 | 255 | |||||||||
Operating income | 563 | 578 | 470 | 340 | 462 | 448 | 340 | 257 | 1,951 | 1,507 | 1,415 | |
Interest (income) expense, net | 481 | 464 | 511 | |||||||||
Other (income) expense, net | (6) | (5) | (5) | |||||||||
Income before provision (benefit) for income taxes | 1,476 | 1,048 | 909 | |||||||||
Provision for income taxes | 380 | (298) | 343 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 1,096 | 1,346 | 566 | |||||||||
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | |||||||||
Net income | $ 310 | $ 333 | $ 270 | $ 183 | $ 897 | $ 199 | $ 141 | $ 109 | 1,096 | 1,346 | 566 | |
Other comprehensive (loss) income | [1] | (86) | 67 | 32 | ||||||||
Comprehensive income | 1,010 | 1,413 | 598 | |||||||||
Eliminations | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | |||||||||
Depreciation of rental equipment | 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 | ||||||||||
Restructuring charge | 0 | 0 | 0 | |||||||||
Non-rental depreciation and amortization | 0 | 0 | 0 | |||||||||
Operating income | 0 | 0 | 0 | |||||||||
Interest (income) expense, net | (1) | (5) | (5) | |||||||||
Other (income) expense, net | 0 | 0 | 0 | |||||||||
Income before provision (benefit) for income taxes | 1 | 5 | 5 | |||||||||
Provision for income taxes | 0 | 0 | 0 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 1 | 5 | 5 | |||||||||
Equity in net earnings (loss) of subsidiaries | (751) | (1,162) | (383) | |||||||||
Net income | (750) | (1,157) | (378) | |||||||||
Other comprehensive (loss) income | 273 | (189) | (82) | |||||||||
Comprehensive income | (477) | (1,346) | (460) | |||||||||
Parent | ||||||||||||
Revenues: | ||||||||||||
Merger related costs | 0 | |||||||||||
Parent | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | |||||||||
Depreciation of rental equipment | 0 | 0 | 0 | |||||||||
Total cost of revenues | 0 | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Selling, general and administrative expenses | 25 | 103 | 43 | |||||||||
Merger related costs | 0 | |||||||||||
Restructuring charge | 0 | 0 | 0 | |||||||||
Non-rental depreciation and amortization | 17 | 15 | 15 | |||||||||
Operating income | (42) | (118) | (58) | |||||||||
Interest (income) expense, net | (39) | (15) | (6) | |||||||||
Other (income) expense, net | (657) | (543) | (471) | |||||||||
Income before provision (benefit) for income taxes | 654 | 440 | 419 | |||||||||
Provision for income taxes | 164 | 144 | 154 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 490 | 296 | 265 | |||||||||
Equity in net earnings (loss) of subsidiaries | 606 | 1,050 | 301 | |||||||||
Net income | 1,096 | 1,346 | 566 | |||||||||
Other comprehensive (loss) income | (86) | 67 | 32 | |||||||||
Comprehensive income | 1,010 | 1,413 | 598 | |||||||||
URNA | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenues | 7,387 | 6,076 | 5,252 | |||||||||
Cost of equipment rentals, excluding depreciation | 2,370 | 1,933 | 1,669 | |||||||||
Depreciation of rental equipment | 1,258 | 1,033 | 900 | |||||||||
Total cost of revenues | 4,268 | 3,502 | 3,023 | |||||||||
Gross profit | 3,119 | 2,574 | 2,229 | |||||||||
Selling, general and administrative expenses | 860 | 682 | 579 | |||||||||
Merger related costs | 36 | 50 | ||||||||||
Restructuring charge | 29 | 49 | 7 | |||||||||
Non-rental depreciation and amortization | 266 | 223 | 216 | |||||||||
Operating income | 1,928 | 1,570 | 1,427 | |||||||||
Interest (income) expense, net | 497 | 469 | 509 | |||||||||
Other (income) expense, net | 742 | 596 | 521 | |||||||||
Income before provision (benefit) for income taxes | 689 | 505 | 397 | |||||||||
Provision for income taxes | 181 | (469) | 157 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 508 | 974 | 240 | |||||||||
Equity in net earnings (loss) of subsidiaries | 98 | 76 | 61 | |||||||||
Net income | 606 | 1,050 | 301 | |||||||||
Other comprehensive (loss) income | (86) | 67 | 32 | |||||||||
Comprehensive income | 520 | 1,117 | 333 | |||||||||
Guarantor Subsidiaries | ||||||||||||
Revenues: | ||||||||||||
Merger related costs | 0 | |||||||||||
Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | |||||||||
Depreciation of rental equipment | 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 | |||||||||||
Restructuring charge | 0 | 0 | 0 | |||||||||
Non-rental depreciation and amortization | 0 | 0 | 0 | |||||||||
Operating income | 0 | 0 | 0 | |||||||||
Interest (income) expense, net | 0 | 3 | 3 | |||||||||
Other (income) expense, net | 0 | 0 | 0 | |||||||||
Income before provision (benefit) for income taxes | 0 | (3) | (3) | |||||||||
Provision for income taxes | 0 | 0 | 0 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 0 | (3) | (3) | |||||||||
Equity in net earnings (loss) of subsidiaries | 47 | 36 | 21 | |||||||||
Net income | 47 | 33 | 18 | |||||||||
Other comprehensive (loss) income | (82) | 67 | 28 | |||||||||
Comprehensive income | (35) | 100 | 46 | |||||||||
Foreign | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenues | 660 | 565 | 510 | |||||||||
Cost of equipment rentals, excluding depreciation | 244 | 218 | 193 | |||||||||
Depreciation of rental equipment | 105 | 91 | 90 | |||||||||
Total cost of revenues | 415 | 370 | 336 | |||||||||
Gross profit | 245 | 195 | 174 | |||||||||
Selling, general and administrative expenses | 96 | 80 | 72 | |||||||||
Merger related costs | 0 | 0 | ||||||||||
Restructuring charge | 2 | 1 | 7 | |||||||||
Non-rental depreciation and amortization | 25 | 21 | 24 | |||||||||
Operating income | 122 | 93 | 71 | |||||||||
Interest (income) expense, net | 0 | 0 | 2 | |||||||||
Other (income) expense, net | 51 | 45 | 40 | |||||||||
Income before provision (benefit) for income taxes | 71 | 48 | 29 | |||||||||
Provision for income taxes | 20 | 12 | 8 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 51 | 36 | 21 | |||||||||
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | |||||||||
Net income | 51 | 36 | 21 | |||||||||
Other comprehensive (loss) income | (105) | 55 | 22 | |||||||||
Comprehensive income | (54) | 91 | 43 | |||||||||
SPV | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Cost of equipment rentals, excluding depreciation | 0 | 0 | 0 | |||||||||
Depreciation of rental equipment | 0 | 0 | 0 | |||||||||
Total cost of revenues | 0 | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Selling, general and administrative expenses | 57 | 38 | 25 | |||||||||
Merger related costs | 0 | 0 | ||||||||||
Restructuring charge | 0 | 0 | 0 | |||||||||
Non-rental depreciation and amortization | 0 | 0 | 0 | |||||||||
Operating income | (57) | (38) | (25) | |||||||||
Interest (income) expense, net | 24 | 12 | 8 | |||||||||
Other (income) expense, net | (142) | (103) | (95) | |||||||||
Income before provision (benefit) for income taxes | 61 | 53 | 62 | |||||||||
Provision for income taxes | 15 | 15 | 24 | |||||||||
Income (loss) before equity in net earnings (loss) of subsidiaries | 46 | 38 | 38 | |||||||||
Equity in net earnings (loss) of subsidiaries | 0 | 0 | 0 | |||||||||
Net income | 46 | 38 | 38 | |||||||||
Other comprehensive (loss) income | 0 | 0 | 0 | |||||||||
Comprehensive income | 46 | 38 | 38 | |||||||||
Total equipment rentals | ||||||||||||
Revenues: | ||||||||||||
Revenues | 6,940 | 5,715 | 4,941 | |||||||||
Total equipment rentals | Eliminations | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Total equipment rentals | Parent | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Total equipment rentals | URNA | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenues | 6,388 | 5,253 | 4,524 | |||||||||
Total equipment rentals | Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Total equipment rentals | Foreign | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenues | 552 | 462 | 417 | |||||||||
Total equipment rentals | SPV | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Sales of rental equipment | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 664 | 550 | 496 | |||||||||
Cost of goods and services sold | 386 | 330 | 292 | |||||||||
Sales of rental equipment | Eliminations | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Sales of rental equipment | Parent | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Sales of rental equipment | URNA | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 609 | 494 | 444 | |||||||||
Cost of goods and services sold | 358 | 302 | 265 | |||||||||
Sales of rental equipment | Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Sales of rental equipment | Foreign | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 55 | 56 | 52 | |||||||||
Cost of goods and services sold | 28 | 28 | 27 | |||||||||
Sales of rental equipment | SPV | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Sales of new equipment | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 208 | 178 | 144 | |||||||||
Cost of goods and services sold | 179 | 152 | 119 | |||||||||
Sales of new equipment | Eliminations | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Sales of new equipment | Parent | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Sales of new equipment | URNA | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 184 | 157 | 129 | |||||||||
Cost of goods and services sold | 159 | 134 | 107 | |||||||||
Sales of new equipment | Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Sales of new equipment | Foreign | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 24 | 21 | 15 | |||||||||
Cost of goods and services sold | 20 | 18 | 12 | |||||||||
Sales of new equipment | SPV | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Contractor supplies sales | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 91 | 80 | 79 | |||||||||
Cost of goods and services sold | 60 | 56 | 55 | |||||||||
Contractor supplies sales | Eliminations | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Contractor supplies sales | Parent | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Contractor supplies sales | URNA | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 80 | 70 | 68 | |||||||||
Cost of goods and services sold | 52 | 49 | 47 | |||||||||
Contractor supplies sales | Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Contractor supplies sales | Foreign | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 11 | 10 | 11 | |||||||||
Cost of goods and services sold | 8 | 7 | 8 | |||||||||
Contractor supplies sales | SPV | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Service and other revenues | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 144 | 118 | 102 | |||||||||
Cost of goods and services sold | 81 | 59 | 41 | |||||||||
Service and other revenues | Eliminations | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Service and other revenues | Parent | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Service and other revenues | URNA | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 126 | 102 | 87 | |||||||||
Cost of goods and services sold | 71 | 51 | 35 | |||||||||
Service and other revenues | Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | 0 | 0 | 0 | |||||||||
Service and other revenues | Foreign | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 18 | 16 | 15 | |||||||||
Cost of goods and services sold | 10 | 8 | 6 | |||||||||
Service and other revenues | SPV | Reportable Legal Entities | ||||||||||||
Revenues: | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | 0 | |||||||||
Cost of goods and services sold | $ 0 | $ 0 | $ 0 | |||||||||
[1] | There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive income (loss) during the years ended December 31, 2018 , 2017 or 2016 . There is no tax impact related to the foreign currency translation adjustments, as the earnings are considered permanently reinvested (see note 13 to the consolidated financial statements for further discussion addressing this determination). There were no material taxes associated with other comprehensive income (loss) during the years ended December 31, 2018 , 2017 or 2016 . |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information of Guarantor Subsidiaries - CONDENSED CONSOLIDATING CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ 2,853 | $ 2,209 | $ 1,941 |
Net cash used in investing activities | (4,551) | (3,684) | (847) |
Net cash provided by (used in) financing activities | 1,397 | 1,497 | (964) |
Effect of foreign exchange rates | (8) | 18 | 3 |
Net (decrease) increase in cash and cash equivalents | (309) | 40 | 133 |
Cash and cash equivalents at beginning of year | 352 | 312 | 179 |
Cash and cash equivalents at end of year | 43 | 352 | 312 |
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 provided by (used in) financing activities | 0 | 0 | 0 |
Effect of foreign exchange rates | 0 | 0 | 0 |
Net (decrease) increase 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 | Reportable Legal Entities | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 36 | 21 | 9 |
Net cash used in investing activities | (36) | (21) | (9) |
Net cash provided by (used in) financing activities | 0 | 0 | 0 |
Effect of foreign exchange rates | 0 | 0 | 0 |
Net (decrease) increase 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 | Reportable Legal Entities | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 3,116 | 2,291 | 1,762 |
Net cash used in investing activities | (4,308) | (3,554) | (832) |
Net cash provided by (used in) financing activities | 1,170 | 1,265 | (927) |
Effect of foreign exchange rates | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | (22) | 2 | 3 |
Cash and cash equivalents at beginning of year | 23 | 21 | 18 |
Cash and cash equivalents at end of year | 1 | 23 | 21 |
Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (1) | (3) | (3) |
Net cash used in investing activities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 1 | 3 | 3 |
Effect of foreign exchange rates | 0 | 0 | 0 |
Net (decrease) increase 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 |
Foreign | Reportable Legal Entities | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (16) | 132 | 136 |
Net cash used in investing activities | (207) | (109) | (6) |
Net cash provided by (used in) financing activities | (56) | (3) | (3) |
Effect of foreign exchange rates | (8) | 18 | 3 |
Net (decrease) increase in cash and cash equivalents | (287) | 38 | 130 |
Cash and cash equivalents at beginning of year | 329 | 291 | 161 |
Cash and cash equivalents at end of year | 42 | 329 | 291 |
SPV | Reportable Legal Entities | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (282) | (232) | 37 |
Net cash used in investing activities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 282 | 232 | (37) |
Effect of foreign exchange rates | 0 | 0 | 0 |
Net (decrease) increase 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 Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 68 | $ 54 | $ 55 |
Acquired | 14 | 6 | 0 |
Charged to Costs and Expenses | 45 | 40 | 24 |
Deductions | 34 | 32 | 25 |
Balance at End of Period | 93 | 68 | 54 |
Reserve for obsolescence and shrinkage | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 7 | 3 | 4 |
Acquired | 1 | 2 | 0 |
Charged to Costs and Expenses | 26 | 20 | 17 |
Deductions | 29 | 18 | 18 |
Balance at End of Period | 5 | 7 | 3 |
Self-insurance reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 100 | 94 | 90 |
Acquired | 5 | 6 | 0 |
Charged to Costs and Expenses | 144 | 122 | 108 |
Deductions | 143 | 122 | 104 |
Balance at End of Period | $ 106 | $ 100 | $ 94 |