Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 22, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity Registrant Name | United Rentals, Inc. | ||
Entity File Number | 1-13663 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 06-1522496 | ||
Entity Address, Address Line One | 100 First Stamford Place, Suite 700 | ||
Entity Address, City or Town | Stamford | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06902 | ||
City Area Code | 203 | ||
Local Phone Number | 622-3131 | ||
Title of 12(b) Security | Common Stock, $.01 par value, of United Rentals, Inc. | ||
Trading Symbol | URI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 26,700 | ||
Entity Common Stock, Shares Outstanding | 67,191,627 | ||
Documents Incorporated by Reference | Portions of United Rentals, Inc.’s Proxy Statement related to the 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this annual report. | ||
Entity Central Index Key | 0001067701 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Stamford, Connecticut |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 363 | $ 106 |
Accounts receivable, net | 2,230 | 2,004 |
Inventory | 205 | 232 |
Prepaid expenses and other assets | 135 | 381 |
Total current assets | 2,933 | 2,723 |
Goodwill | 5,940 | 6,026 |
Other intangible assets, net | 670 | 452 |
Operating lease right-of-use assets | 1,099 | 819 |
Other long-term assets | 43 | 47 |
Total assets | 25,589 | 24,183 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Short-term debt and current maturities of long-term debt | 1,465 | 161 |
Accounts payable | 905 | 1,139 |
Accrued expenses and other liabilities | 1,267 | 1,145 |
Total current liabilities | 3,637 | 2,445 |
Long-term debt | 10,053 | 11,209 |
Deferred taxes | 2,701 | 2,671 |
Operating Lease, Liability, Noncurrent | 895 | 642 |
Other long-term liabilities | 173 | 154 |
Total liabilities | 17,459 | 17,121 |
Common stock—$0.01 par value, 500,000,000 shares authorized, 115,010,396 and 67,269,577 shares issued and outstanding, respectively, at December 31, 2023 and 114,758,508 and 69,356,981 shares issued and outstanding, respectively, at December 31, 2022 | 1 | 1 |
Additional paid-in capital | 2,650 | 2,626 |
Retained earnings | 11,672 | 9,656 |
Treasury stock at cost—47,740,819 and 45,401,527 shares at December 31, 2023 and December 31, 2022, respectively | (5,965) | (4,957) |
Accumulated other comprehensive loss | (228) | (264) |
Total stockholders’ equity | 8,130 | 7,062 |
Total liabilities and stockholders’ equity | 25,589 | 24,183 |
Sales of rental equipment | ||
ASSETS | ||
Property and equipment, net | 14,001 | 13,277 |
Property and equipment, net | ||
ASSETS | ||
Property and equipment, net | $ 903 | $ 839 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 115,010,396 | 114,758,508 |
Common stock, shares outstanding (in shares) | 67,269,577 | 69,356,981 |
Treasury stock (in shares) | 47,740,819 | 45,401,527 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Revenues | $ 14,332 | $ 11,642 | $ 9,716 |
Cost of revenues: | |||
Cost of equipment rentals, excluding depreciation | 4,900 | 4,018 | 3,329 |
Depreciation of rental equipment | 2,350 | 1,853 | 1,611 |
Total cost of revenues | 8,519 | 6,646 | 5,863 |
Gross profit | 5,813 | 4,996 | 3,853 |
Selling, general and administrative expenses | 1,527 | 1,400 | 1,199 |
Merger related costs | 0 | 0 | 3 |
Restructuring charge | 28 | 0 | 2 |
Non-rental depreciation and amortization | 431 | 364 | 372 |
Operating income | 3,827 | 3,232 | 2,277 |
Interest expense, net | 635 | 445 | 424 |
Other (income) expense, net | (19) | (15) | 7 |
Income before provision for income taxes | 3,211 | 2,802 | 1,846 |
Provision for income taxes | 787 | 697 | 460 |
Net income | $ 2,424 | $ 2,105 | $ 1,386 |
Basic earnings per share (in dollars per share) | $ 35.40 | $ 29.77 | $ 19.14 |
Diluted earnings per share (in dollars per share) | $ 35.28 | $ 29.65 | $ 19.04 |
Equipment rentals | |||
Revenues: | |||
Revenues | $ 12,064 | $ 10,116 | $ 8,207 |
Sales of rental equipment | |||
Revenues: | |||
Revenues | 1,574 | 965 | 968 |
Cost of revenues: | |||
Cost of goods and services sold | 788 | 399 | 537 |
Sales of new equipment | |||
Revenues: | |||
Revenues | 218 | 154 | 203 |
Cost of revenues: | |||
Cost of goods and services sold | 179 | 124 | 169 |
Contractor supplies sales | |||
Revenues: | |||
Revenues | 146 | 126 | 109 |
Cost of revenues: | |||
Cost of goods and services sold | 99 | 84 | 78 |
Service and other revenues | |||
Revenues: | |||
Revenues | 330 | 281 | 229 |
Cost of revenues: | |||
Cost of goods and services sold | $ 203 | $ 168 | $ 139 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,424 | $ 2,105 | $ 1,386 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | [1] | 37 | (93) | (26) |
Fixed price diesel swaps | (1) | 0 | 1 | |
Other comprehensive income (loss) | [1] | 36 | (93) | (25) |
Comprehensive income | $ 2,460 | $ 2,012 | $ 1,361 | |
[1] There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive income (loss) during the years ended December 31, 2023, 2022 or 2021. There was no material tax impact related to the foreign currency translation adjustments during the years ended December 31, 2023, 2022 or 2021. See note 14 to the consolidated financial statements for a discussion addressing our determination pertaining to the permanent reinvestment of unremitted foreign earnings. There were no material taxes associated with other comprehensive income (loss) during the years ended December 31, 2023, 2022 or 2021. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Reclassification from AOCI, current period, net of tax, attributable to parent | $ 0 | $ 0 | $ 0 |
Other comprehensive income (loss), foreign currency translation adjustment, tax, portion attributable to parent | 0 | 0 | 0 |
Other comprehensive income (loss), tax, portion attributable to parent | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | [2] | |||
Balance (in shares) at Dec. 31, 2020 | [1] | 72,000,000 | ||||||||
Balance at Dec. 31, 2020 | $ 1,000,000 | $ 2,482,000,000 | $ 6,165,000,000 | $ (3,957,000,000) | $ (146,000,000) | |||||
Balance (in shares) at Dec. 31, 2020 | 42,000,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | $ 1,386,000,000 | 1,386,000,000 | ||||||||
Dividends declared | 0 | |||||||||
Foreign currency translation adjustments | (26,000,000) | [3] | (26,000,000) | |||||||
Fixed price diesel swaps | 1,000,000 | 1,000,000 | ||||||||
Stock compensation expense, net | 119,000,000 | |||||||||
Tax withholding for share based compensation | (34,000,000) | |||||||||
Balance (in shares) at Dec. 31, 2021 | [1] | 72,000,000 | ||||||||
Balance at Dec. 31, 2021 | $ 1,000,000 | 2,567,000,000 | 7,551,000,000 | $ (3,957,000,000) | (171,000,000) | |||||
Balance (in shares) at Dec. 31, 2021 | 42,000,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 2,105,000,000 | 2,105,000,000 | ||||||||
Dividends declared | 0 | |||||||||
Foreign currency translation adjustments | (93,000,000) | [3] | (93,000,000) | |||||||
Fixed price diesel swaps | $ 0 | |||||||||
Stock compensation expense, net | 127,000,000 | |||||||||
Tax withholding for share based compensation | (68,000,000) | |||||||||
Repurchase of common stock (in shares) | (3,000,000) | [1] | (3,000,000) | |||||||
Repurchase of common stock | $ (1,000,000,000) | |||||||||
Balance (in shares) at Dec. 31, 2022 | 69,356,981 | 69,000,000 | [1] | |||||||
Balance at Dec. 31, 2022 | $ 7,062,000,000 | $ 1,000,000 | 2,626,000,000 | 9,656,000,000 | $ (4,957,000,000) | (264,000,000) | ||||
Balance (in shares) at Dec. 31, 2022 | 45,401,527 | 45,000,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | $ 2,424,000,000 | 2,424,000,000 | ||||||||
Dividends declared | [4] | (408,000,000) | ||||||||
Foreign currency translation adjustments | 37,000,000 | [3] | 37,000,000 | |||||||
Fixed price diesel swaps | $ (1,000,000) | (1,000,000) | ||||||||
Stock compensation expense, net | 94,000,000 | |||||||||
Tax withholding for share based compensation | (70,000,000) | |||||||||
Repurchase of common stock (in shares) | (3,000,000) | [1] | (3,000,000) | |||||||
Repurchase of common stock | $ (1,008,000,000) | |||||||||
Balance (in shares) at Dec. 31, 2023 | 67,269,577 | 67,000,000 | [1] | |||||||
Balance at Dec. 31, 2023 | $ 8,130,000,000 | $ 1,000,000 | $ 2,650,000,000 | $ 11,672,000,000 | $ (5,965,000,000) | $ (228,000,000) | ||||
Balance (in shares) at Dec. 31, 2023 | 47,740,819 | 48,000,000 | ||||||||
[1] Amounts may not foot due to rounding. As of December 31, 2023, 2022 and 2021, the Accumulated Other Comprehensive Loss balance primarily reflects foreign currency translation adjustments. There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive income (loss) during the years ended December 31, 2023, 2022 or 2021. There was no material tax impact related to the foreign currency translation adjustments during the years ended December 31, 2023, 2022 or 2021. See note 14 to the consolidated financial statements for a discussion addressing our determination pertaining to the permanent reinvestment of unremitted foreign earnings. There were no material taxes associated with other comprehensive income (loss) during the years ended December 31, 2023, 2022 or 2021. |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividends declared (in USD per share) | $ 5.92 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities: | |||
Net income | $ 2,424 | $ 2,105 | $ 1,386 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,781 | 2,217 | 1,983 |
Amortization of deferred financing costs and original issue discounts | 14 | 13 | 13 |
Gain on sales of rental equipment | (786) | (566) | (431) |
Gain on sales of non-rental equipment | (21) | (9) | (10) |
Insurance proceeds from damaged equipment | (38) | (32) | (25) |
Stock compensation expense, net | 94 | 127 | 119 |
Merger related costs | 0 | 0 | 3 |
Restructuring charge | 28 | 0 | 2 |
Loss on repurchase/redemption of debt securities | 0 | 17 | 30 |
Increase in deferred taxes | 35 | 537 | 268 |
Changes in operating assets and liabilities, net of amounts acquired: | |||
Increase in accounts receivable | (167) | (329) | (300) |
Decrease (increase) in inventory | 19 | (25) | 9 |
Decrease (increase) in prepaid expenses and other assets | 281 | (164) | 248 |
(Decrease) increase in accounts payable | (45) | 304 | 307 |
Increase in accrued expenses and other liabilities | 85 | 238 | 87 |
Net cash provided by operating activities | 4,704 | 4,433 | 3,689 |
Cash Flows From Investing Activities: | |||
Payments for purchases of rental equipment | (3,714) | (3,436) | (2,998) |
Payments for purchases of non-rental equipment and intangible assets | (356) | (254) | (200) |
Proceeds from sales of rental equipment | 1,574 | 965 | 968 |
Proceeds from sales of non-rental equipment | 60 | 24 | 30 |
Insurance proceeds from damaged equipment | 38 | 32 | 25 |
Purchases of other companies, net of cash acquired | (574) | (2,340) | (1,436) |
Purchases of investments | (4) | (7) | 0 |
Net cash used in investing activities | (2,976) | (5,016) | (3,611) |
Cash Flows From Financing Activities: | |||
Proceeds from debt | 8,576 | 9,885 | 8,364 |
Payments of debt | (8,574) | (8,241) | (8,462) |
Payments of financing costs | 0 | (24) | (8) |
Dividends paid | (406) | 0 | 0 |
Common stock repurchased, including tax withholdings for share based compensation | (1,070) | (1,068) | (34) |
Net cash (used in) provided by financing activities | (1,474) | 552 | (140) |
Effect of foreign exchange rates | 3 | (7) | 4 |
Net increase (decrease) in cash and cash equivalents | 257 | (38) | (58) |
Cash and cash equivalents at beginning of year | 106 | 144 | 202 |
Cash and cash equivalents at end of year | 363 | 106 | 144 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 614 | 406 | 391 |
Cash paid for income taxes, net | $ 493 | $ 326 | $ 202 |
Organization, Description of Bu
Organization, Description of Business and Consolidation | 12 Months Ended |
Dec. 31, 2023 | |
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 government entities. We primarily operate in the United States and Canada, and have a limited presence in Europe, Australia and New Zealand. In addition to renting equipment, we sell new and used rental equipment, as well as related contractor supplies, parts and service. The accompanying consolidated financial statements include our accounts and those of our controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. We consolidate variable interest entities if we are deemed the primary beneficiary of the entity. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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. Allowance for Credit Losses We maintain allowances for credit losses. These allowances reflect our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectibility. Our 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 or weighted-average 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 Accounts payable as of December 31, 2023 includes $74 of amounts due but unpaid for purchases of rental equipment. The net impact of accrued purchases of rental equipment was not material for the years ended December 31, 2022 and 2021. 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 three 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. Goodwill is calculated as the excess of the cost of the acquired business over the net of the fair value of the assets acquired and the liabilities assumed. 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. 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 can be 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). When conducting the goodwill impairment test, we are required to compare the fair value of our reporting units (which are our regions) with the carrying amount. As discussed in note 5 to our consolidated financial statements, our divisions are our operating segments. We conduct the goodwill impairment test at the reporting unit level, which is one level below the operating segment level. 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. We estimate the fair value of our reporting units 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. We believe this approach, which utilizes multiple valuation techniques, yields the most appropriate evidence of fair value. In connection with our goodwill impairment test that was conducted as of October 1, 2023, we bypassed the optional qualitative assessment for each reporting unit and quantitatively compared the fair values of our reporting units with their carrying amounts. Our goodwill impairment testing as of this date indicated that all of our reporting units, excluding our Mobile Storage reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 54 percent. We completed the acquisition of General Finance in May 2021, and all of the assets in the Mobile Storage reporting unit were acquired in the General Finance acquisition. The estimated fair value of our Mobile Storage reporting unit exceeded its carrying amount by eight percent. As all of the assets in the Mobile Storage reporting unit were recorded at fair value as of the May 2021 acquisition date, we expected the percentage by which the fair value for this reporting unit exceeded the carrying value to be significantly less than the equivalent percentages determined for our other reporting units. In connection with our goodwill impairment test that was conducted as of October 1, 2022, we bypassed the optional qualitative assessment for each reporting unit and quantitatively compared the fair values of our reporting units with their carrying amounts. Our goodwill impairment testing as of this date indicated that all of our reporting units, excluding our Mobile Storage reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 37 percent. We completed the acquisition of General Finance in May 2021, and all of the assets in the Mobile Storage reporting unit were acquired in the General Finance acquisition. The estimated fair value of our Mobile Storage reporting unit exceeded its carrying amount by eight percent. As all of the assets in the Mobile Storage reporting unit were recorded at fair value as of the May 2021 acquisition date, we expected the percentages by which the fair values for this reporting unit exceeded the carrying value to be significantly less than the equivalent percentages determined for our other reporting units. 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 five eight five Long-Lived Assets Long-lived assets are recorded at the lower of amortized cost or fair value. As part of an ongoing review of the valuation of long-lived assets, we assess the carrying value of such assets if facts and circumstances suggest they may be impaired. If this review indicates the carrying value of such an asset may not be recoverable, as determined by an undiscounted cash flow analysis over the remaining useful life, the carrying value would be reduced to its estimated fair value. Translation of Foreign Currency Assets and liabilities of our foreign subsidiaries that have a functional currency other than U.S. dollars are translated into U.S. dollars using exchange rates at the balance sheet date. Revenues and expenses are translated at average exchange rates effective during the year. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive (loss) income within stockholders’ equity. Revenue Recognition As discussed in note 3 to our consolidated financial statements, we recognize revenue in accordance with two different accounting standards: 1) Topic 606 (which addresses revenue from contracts with customers) and 2) Topic 842 (which addresses lease revenue). As discussed in note 3, most of our revenue is accounted for under Topic 842. The discussion below addresses our primary revenue types based on the accounting standard used to determine the accounting. Lease revenues (Topic 842) The accounting for the significant types of revenue that are accounted for under Topic 842 is discussed below. Owned equipment rentals: Owned equipment rentals represent revenues from renting equipment that we own. We account for such rentals as operating leases. Re-rent revenue: Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. Revenues from contracts with customers (Topic 606) The accounting for the significant types of revenue that are accounted for under Topic 606 is discussed below. Delivery and pick-up: Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. Sales of rental equipment, new equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is probable. Service and other revenues primarily represent revenues earned from providing repair and maintenance services on our customers’ fleet (including parts sales). Service revenue is recognized as the services are performed. See note 3 to our consolidated financial statements for further discussion of our revenue accounting. Delivery Expense Equipment rentals include our revenues from fees we charge for equipment delivery. Delivery costs are charged to operations as incurred, and are included in cost of revenues on our consolidated statements of income. Advertising Expense We promote our business through local and national advertising in various media, including television, trade publications, branded sponsorships, yellow pages, the internet, radio and direct mail. Advertising costs are generally expensed as incurred. These costs may include the development costs for branded content and advertising campaigns. Advertising expense, net of the qualified advertising reimbursements discussed below, was not material for the years ended December 31, 2023, 2022 and 2021. 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 $44, $53 and $49 for the years ended December 31, 2023, 2022 and 2021, respectively. Insurance We are insured for general liability, workers’ compensation and automobile liability, subject to deductibles or self-insured retentions per occurrence. Losses within the deductible amounts are accrued based upon the aggregate liability for reported claims incurred, as well as an estimated liability for claims incurred but not yet reported. These liabilities are not discounted. We are also self-insured for group medical claims but purchase “stop loss” insurance as protection against any one significant loss. Income Taxes We use the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities and are measured using the tax rates and laws that are expected to be in effect when the differences are expected to reverse. Recognition of deferred tax assets is limited to amounts considered by management to be more likely than not to be realized in future periods. The most significant positive evidence that we consider in the recognition of deferred tax assets is the expected reversal of cumulative deferred tax liabilities resulting from book versus tax depreciation of our rental equipment fleet that is well in excess of the deferred tax assets. We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return regarding uncertainties in income tax positions. The first step is recognition: we determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, we presume that the position will be examined by the appropriate taxing authority with full knowledge of all relevant information. The second step is measurement: a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset or an increase in a deferred tax liability. We have historically considered the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested, and, accordingly, no taxes were provided on such earnings prior to the fourth quarter of 2020. In 2021, we remitted the cumulative amount of identified cash in our foreign operations in excess of near-term working capital needs. The taxes recorded associated with the remitted cash were immaterial. We continue to expect that the remaining balance of our undistributed foreign earnings will be indefinitely reinvested. If we determine that all or a portion of such foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. 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 credit losses, depreciation and amortization, income taxes and reserves for claims. Actual results could materially differ from those estimates. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk include cash and cash equivalents and accounts receivable. We maintain cash and cash equivalents with high quality financial institutions. Concentration of credit risk with respect to receivables is limited because a large number of geographically diverse customers makes up our customer base (see note 3 to our consolidated financial statements for further detail). We manage credit risk through credit approvals, credit limits and other monitoring procedures. Stock-Based Compensation We measure stock-based compensation at the grant date based on the fair value of the award and recognize stock-based compensation expense over the requisite service period. Determining the fair value of stock option awards requires judgment, including estimating stock price volatility and expected option life. Restricted stock awards are valued based on the fair value of the stock on the grant date and the related compensation expense is recognized over the service period. Similarly, for time-based restricted stock awards subject to graded vesting, we recognize compensation cost on a straight-line basis over the requisite service period. For performance-based restricted stock units ("RSUs"), compensation expense is recognized if satisfaction of the performance condition is considered probable. We recognize forfeitures of stock-based compensation as they occur. New Accounting Pronouncements Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued ASU 2023-07, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require, among other things, disclosure of significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”) and a description of other segment items (the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss) by reportable segment, as well as disclosure of the title and position of the CODM, and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Annual disclosures are required for fiscal years beginning after December 15, 2023 and interim disclosures are required for periods within fiscal years beginning after December 15, 2024. Retrospective application is required, and early adoption is permitted. These requirements are not expected to have an impact on our financial statements, but will result in significantly expanded reportable segment disclosures. Improvements to Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, may be applied prospectively or retrospectively, and allows for early adoption. These requirements are not expected to have an impact on our financial statements, but will impact our income tax disclosures. Accounting Guidance Adopted in 2023 Reference Rate Reform . In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities’ financial reporting burdens as the market transitions from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This guidance generally allows for contract modifications solely related to the replacement of the reference rate to be accounted for as a continuation of the existing contract instead of as an extinguishment of the contract, without triggering certain accounting impacts that could be required associated with an extinguishment of the contract. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. In April 2023, our term loan facility was amended to transition to an interest rate based on the Secured Overnight Financing Rate ("SOFR"). Prior to the amendment, interest on the term loan facility reflected LIBOR plus a margin (or an alternative base rate plus a margin). We applied the above guidance when accounting for the term loan facility amendment, and adoption of this guidance did not have a material impact on our financial statements. As of December 31, 2023, we have no debt instruments that use LIBOR as a reference rate, and this guidance is not expected to have a material impact on our financial statements in the future. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Recognition Accounting Standards We recognize revenue in accordance with two different accounting standards: 1) Topic 606 (which addresses revenue from contracts with customers) and 2) Topic 842 (which addresses lease revenue). Under Topic 606, revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account under Topic 606. As reflected below, most of our revenue is accounted for under Topic 842. Our contracts with customers generally do not include multiple performance obligations. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services. Nature of goods and services In the following table, revenue is summarized by type and by the applicable accounting standard. Year Ended December 31, 2023 2022 2021 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Topic 842 Topic 606 Total Revenues: Owned equipment rentals $ 9,948 $ — $ 9,948 $ 8,310 $ — $ 8,310 $ 6,840 $ — $ 6,840 Re-rent revenue 233 — 233 235 — 235 194 — 194 Ancillary and other rental revenues: Delivery and pick-up — 941 941 — 799 799 — 616 616 Other 756 186 942 596 176 772 426 131 557 Total ancillary and other rental revenues 756 1,127 1,883 596 975 1,571 426 747 1,173 Total equipment rentals 10,937 1,127 12,064 9,141 975 10,116 7,460 747 8,207 Sales of rental equipment — 1,574 1,574 — 965 965 — 968 968 Sales of new equipment — 218 218 — 154 154 — 203 203 Contractor supplies sales — 146 146 — 126 126 — 109 109 Service and other revenues — 330 330 — 281 281 — 229 229 Total revenues $ 10,937 $ 3,395 $ 14,332 $ 9,141 $ 2,501 $ 11,642 $ 7,460 $ 2,256 $ 9,716 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, 2023, 75 percent and 91 percent, 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 842) The accounting for the types of revenue that are accounted for under Topic 842 is discussed below. Owned equipment rentals represent our most significant revenue type (they accounted for 69 percent of total revenues for the year ended December 31, 2023) and are governed by our standard rental contract. We account for such rentals as operating leases. The lease terms are included in our contracts, and the determination of whether our contracts contain leases generally does not require significant assumptions or judgments. Our lease revenues do not include material amounts of variable payments. Owned equipment rentals: Owned equipment rentals represent revenues from renting equipment that we own. We do not generally provide an option for the lessee to purchase the rented equipment at the end of the lease, and do not generate material revenue from sales of equipment under such options. We recognize revenues from renting equipment on a straight-line basis. Our rental contract periods are hourly, daily, weekly or monthly. By way of example, if a customer were to rent a piece of equipment and the daily, weekly and monthly rental rates for that particular piece were (in actual dollars) $100, $300 and $900, respectively, we would recognize revenue of $32.14 per day. The daily rate for recognition purposes is calculated by dividing the monthly rate of $900 by the monthly term of 28 days. This daily rate assumes that the equipment will be on rent for the full 28 days, as we are unsure of when the customer will return the equipment and therefore unsure of which rental contract period will apply. As part of this straight-line methodology, when the equipment is returned, we recognize as incremental revenue the excess, if any, between the amount the customer is contractually required to pay, which is based on the rental contract period applicable to the actual number of days the equipment was out on rent, over the cumulative amount of revenue recognized to date. In any given accounting period, we will have customers return equipment and be contractually required to pay us more than the cumulative amount of revenue recognized to date under the straight-line methodology. For instance, continuing the above example, if the customer rented the above piece of equipment on December 29 and returned it at the close of business on January 1, we would recognize incremental revenue on January 1 of $171.44 (in actual dollars, representing the difference between the amount the customer is contractually required to pay, or $300 at the weekly rate, and the cumulative amount recognized to date on a straight-line basis, or $128.56, which represents four days at $32.14 per day). We record amounts billed to customers in excess of recognizable revenue as deferred revenue on our balance sheet. We had deferred revenue (associated with both Topic 842 and Topic 606) of $138 and $131 as of December 31, 2023 and 2022, respectively. As noted above, we are unsure of when the customer will return rented equipment. As such, we do not know how much the customer will owe us upon return of the equipment and cannot provide a maturity analysis of future lease payments. Our equipment is generally rented for short periods of time (significantly less than a year). Lessees do not provide residual value guarantees on rented equipment. We expect to derive significant future benefits from our equipment following the end of the rental term. Our rentals are generally short-term in nature, and our equipment is typically rented for the majority of the time that we own it. We additionally recognize revenue from sales of rental equipment when we dispose of the equipment. Re-rent revenue: Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. “Other” equipment rental revenue is primarily comprised of 1) Rental Protection Plan (or "RPP") revenue associated with the damage waiver customers can purchase when they rent our equipment to protect against potential loss or damage, 2) environmental charges associated with the rental of equipment, 3) charges for rented equipment that is damaged by our customers and 4) charges for setup and other services performed on rented equipment. Revenues from contracts with customers (Topic 606) The accounting for the types of revenue that are accounted for under Topic 606 is discussed below. Substantially all of our revenues under Topic 606 are recognized at a point-in-time rather than over time. Delivery and pick-up: Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. “Other” equipment rental revenue is primarily comprised of revenues associated with the consumption of fuel by our customers which are recognized when the equipment is returned by the customer (and consumption, if any, can be measured). Sales of rental equipment, new equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is probable. Service and other revenues primarily represent revenues earned from providing repair and maintenance services on our customers’ fleet (including parts sales). Service revenue is recognized as the services are performed. Receivables and contract assets and liabilities As reflected above, most of our equipment rental revenue is accounted for under Topic 842 (such revenue represented 76 percent of our total revenues for the year ended December 31, 2023). The customers that are responsible for the remaining revenue that is accounted for under Topic 606 are generally the same customers that rent our equipment. We manage credit risk associated with our accounts receivables at the customer level. Because the same customers generate the revenues that are accounted for under both Topic 606 and Topic 842, the discussions below on credit risk and our allowance for credit losses address receivables arising from revenues from both Topic 606 and Topic 842. 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 2023, 2022, and 2021. Our customer with the largest receivable balance represented approximately one percent of total receivables at December 31, 2023 and 2022. We manage credit risk through credit approvals, credit limits and other monitoring procedures. Our allowance for credit losses reflects our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectibility. Our estimate could require change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowance. Trade receivables that have contractual maturities of one year or less are written-off when they are determined to be uncollectible based on the criteria necessary to qualify as a deduction for federal tax purposes. Write-offs of such receivables require management approval based on specified dollar thresholds. See the table below for a rollforward of our allowance for credit losses. The measurement of expected credit losses is based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectibility. Trade receivables are the only material financial asset we have that is subject to the requirement to measure expected credit losses as noted above, as this requirement does not apply to receivables arising from operating lease revenues. Substantially all of our non-lease trade receivables are due in one year or less. As discussed above, most of our equipment rental revenue is accounted for as lease revenue (such revenue represented 76 percent of our total revenues for the year ended December 31, 2023), and these revenues account for corresponding portions of the $2.230 billion of net accounts receivable and the associated allowance for credit losses of $169 as of December 31, 2023. As discussed above, most of our equipment rental revenue is accounted for under Topic 842. The customers that are responsible for the remaining revenue that is accounted for under Topic 606 are generally the same customers that rent our equipment. We manage credit risk associated with our accounts receivables at the customer level. The rollforward of our allowance for credit losses (in total, and associated with revenues arising from both Topic 606 and Topic 842) is shown below. Year ended December 31, 2023 2022 2021 Beginning balance $ 134 $ 112 $ 108 Charged to costs and expenses (1) 14 11 5 Charged to revenue (2) 60 49 31 Deductions and other (3) (39) (38) (32) Ending balance $ 169 $ 134 $ 112 _________________ (1) Reflects bad debt expenses recognized within selling, general and administrative expenses (associated with Topic 606 revenues). (2) Primarily reflects credit losses associated with lease revenues that were recognized as a reduction to equipment rentals revenue (primarily associated with Topic 842 revenues). (3) Primarily represents write-offs of accounts, net of immaterial recoveries and other activity. We do not have material contract assets, or impairment losses associated therewith, or material contract liabilities, associated with contracts with customers. Our contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. We did not recognize material revenue during the years ended December 31, 2023 and December 31, 2022 that was included in the contract liability balance as of the beginning of such periods. Performance obligations Most of our Topic 606 revenue is recognized at a point-in-time, rather than over time. Accordingly, in any particular period, we do not generally recognize a significant amount of revenue from performance obligations satisfied (or partially satisfied) in previous periods, and the amounts of such revenue recognized during the years ended December 31, 2023 and December 31, 2022 were not material. We also do not expect to recognize material revenue in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of December 31, 2023. Payment terms Our Topic 606 revenues do not include material amounts of variable consideration. Our payment terms vary by the type and location of our customer and the products or services offered. The time between invoicing and when payment is due is not significant. Our contracts do not generally include a significant financing component. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. See above for a discussion of how we manage credit risk. Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities. Contract costs We do not recognize any assets associated with the incremental costs of obtaining a contract with a customer (for example, a sales commission) that we expect to recover. Most of our revenue is recognized at a point-in-time or over a period of one year or less, and we use the practical expedient that allows us to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. Contract estimates and judgments Our revenues accounted for under Topic 606 generally do not require significant estimates or judgments, primarily for the following reasons: • The transaction price is generally fixed and stated in our contracts; • As noted above, our contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation; • Our revenues do not include material amounts of variable consideration, or result in significant obligations associated with returns, refunds or warranties; and • Most of our revenue is recognized as of a point-in-time and the timing of the satisfaction of the applicable performance obligations is readily determinable. As noted above, our Topic 606 revenue is generally recognized at the time of delivery to, or pick-up by, the customer. Our revenues accounted for under Topic 842 also generally do not require significant estimates or judgments. We monitor and review our estimated standalone selling prices on a regular basis. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions On December 7, 2022, we completed the acquisition of assets of Ahern Rentals, Inc. ("Ahern Rentals"), which was accounted for as a business combination. Ahern Rentals was the eighth largest equipment rental company in North America and served customers primarily in the construction and industrial sectors across 30 states. The acquisition: • Increased capacity in key geographies, with concentrations on both U.S. coasts and in the Gulf region; • Increased availability of high-demand aerial and material handling equipment for our customers; and • Created immediate cross-sell opportunities to an expanded customer base. The aggregate consideration paid to acquire Ahern Rentals was $1.988 billion. The acquisition and related fees and expenses were funded through the issuance of $1.5 billion principal amount of 6 percent Senior Secured Notes and drawings on our senior secured asset-based revolving credit facility (“ABL facility”). During the year ended December 31, 2023, we recognized measurement period adjustments primarily to establish the fair values for intangible assets and lease assets and liabilities. These adjustments resulted in a substantial reduction to goodwill versus the previously reported amount (see note 9 to the consolidated financial statements for further discussion of goodwill changes). Non-rental depreciation and amortization for the year ended December 31, 2023 includes $7 of intangible asset amortization that would have been recognized in 2022 if the intangible asset values had been established as of December 31, 2022. The following table summarizes the fair values of the assets acquired and liabilities assumed. Inventory $ 20 Rental equipment 1,232 Property and equipment 186 Intangible assets (1) 428 Operating lease right-of-use assets 211 Other assets 10 Total identifiable assets acquired 2,087 Accounts payable, accrued expenses and other liabilities (24) Operating lease liabilities (199) Debt (finance leases) (38) Total liabilities assumed (261) Net identifiable assets acquired 1,826 Goodwill (2) 162 Net assets acquired $ 1,988 (1) 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 $ 330 9 Non-compete agreements 98 5 Total $ 428 (2) All of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the acquisition is primarily reflective of Ahern Rentals' going-concern value, the value of Ahern Rentals' assembled workforce and new customer relationships expected to arise from the acquisition. All of the goodwill is expected to be deductible for income tax purposes (because the acquisition is a purchase of assets, the goodwill that is deductible for income tax purposes equals the total acquired goodwill). The debt issuance costs associated with the issuance of debt to partially fund the acquisition are reflected, net of amortization subsequent to the acquisition date, in long-term debt in our consolidated balance sheets. Additionally, in the first quarter of 2023, we initiated a restructuring program following the closing of the Ahern Rentals acquisition, and the costs under this program are included in “Restructuring charge” in our consolidated statements of income. The restructuring charges generally involve the closure of a large number of branches over a short period of time, often in periods following a major acquisition. It is not practicable to reasonably estimate the amounts of revenue and earnings of Ahern Rentals since the acquisition date, primarily due to the movement of fleet between URI locations and the acquired Ahern Rentals locations, as well as our corporate structure and the allocation of corporate costs. Pro forma financial information The pro forma information below gives effect to the Ahern Rentals acquisition as if it had been completed on January 1, 2021. The pro forma information is not necessarily indicative of our results had the acquisition been completed on the above date, nor is it necessarily indicative of our future results. The pro forma information reflects Ahern Rentals’ historic revenue presented in accordance with our revenue mapping, does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisition, and also does not reflect additional revenue opportunities following the acquisition. The table below presents unaudited pro forma consolidated income statement information as if Ahern Rentals had been included in our consolidated results for the entire period reflected: Year Ended December 31, 2022 United Rentals historic revenues $ 11,642 Ahern Rentals historic revenues 827 Pro forma revenues 12,469 United Rentals historic pretax income $ 2,802 Ahern Rentals historic pretax income 2 Combined pretax income 2,804 Pro forma adjustments to combined pretax income: Impact of fair value mark-ups/useful life changes on depreciation (1) (94) Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales (2) (28) Intangible asset amortization (3) (78) Interest expense (4) (96) Elimination of historic interest (5) 53 Elimination of historic legal and financing costs (6) 11 Pro forma pretax income $ 2,572 ________________ (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 Ahern Rentals acquisition. (2) Cost of rental equipment sales was adjusted for the fair value mark-ups, and the changes in useful lives and salvage values, of rental equipment acquired in the Ahern Rentals acquisition. (3) Intangible asset amortization was adjusted to include amortization of the acquired intangible assets. (4) As discussed above, the acquisition and related fees and expenses were funded through the issuance of senior notes and drawings on our ABL facility. Interest expense was adjusted to reflect interest on the debt used to finance the acquisition. (5) Historic interest on debt that is not part of the combined entity was eliminated. (6) Reflects legal and financing costs incurred by Ahern Rentals that do not relate to the combined entity (specifically, legal costs related to a particular lawsuit and costs related to an attempted financing). |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments are i) general rentals and ii) specialty. In the fourth quarter of 2021, following a realignment of certain of our divisions and regions, and changes in leadership roles and responsibilities, we updated our analysis of operating segments and concluded that our divisions represent our operating segments. Prior to the fourth quarter of 2021, our regions were our operating segments. While this update reflects a change in operating segments, it did not result in any changes to the rental locations in each reportable segment, and, as a result, there were no changes to the historically reported segment financial information. Our determination of the operating segments is primarily based on geography, but also includes consideration of the offered products and services. As noted below, we evaluate segment performance primarily based on segment equipment rentals gross profit. The primary change resulting from the change in segment presentation is to our ongoing review of segment equipment rentals margins, which we monitor on a quarterly basis to assess margin similarity between operating segments. Because of the change in operating segments, this margin analysis is now conducted at the division level, while it was historically (prior to the realignment in the fourth quarter of 2021) performed at the region level. As discussed further in note 2 to our consolidated financial statements ("Evaluation of Goodwill Impairment"), we test for goodwill impairment at the reporting unit (the region, which is one level below the operating segment (division)) level, and the change in the segment structure did not impact our goodwill impairment testing. For general rentals, the divisions discussed below, which are our operating segments, are aggregated into the reportable segment. The specialty segment is a single division that is both an operating segment and a reportable segment. We believe that the divisions that are aggregated into our reportable segments have similar economic characteristics, as each division is capital intensive, offers similar products to similar customers, uses similar methods to distribute its products, and is subject to similar competitive risks. The aggregation of our divisions also reflects the management structure that we use for making operating decisions and assessing performance. We evaluate segment performance primarily based on segment equipment rentals gross profit. The general rentals segment includes the rental of i) general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, ii) aerial work platforms, such as boom lifts and scissor lifts and iii) general tools and light equipment, such as pressure washers, water pumps and power tools. The general rentals segment reflects the aggregation of four geographic divisions—Central, Northeast, Southeast and West—and operates throughout the United States and Canada. The specialty segment, which, as noted above, is a single division that is both an operating segment and a reportable segment, rents products (and provides setup and other services on such rented equipment) including 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, iii) fluid solutions equipment primarily used for fluid containment, transfer and treatment, and iv) mobile storage equipment and modular office space. The specialty segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment primarily operates in the United States and Canada, and has a limited presence in Europe, Australia and New Zealand. The following table presents the percentage of equipment rental revenue by equipment type for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, 2023 2022 2021 Primarily rented by our general rentals segment: General construction and industrial equipment 42 % 42 % 42 % Aerial work platforms 25 % 24 % 26 % General tools and light equipment 8 % 8 % 8 % Primarily rented by our specialty segment: Power and HVAC equipment 10 % 10 % 9 % Trench safety equipment 5 % 6 % 6 % Fluid solutions equipment 7 % 7 % 7 % Mobile storage equipment and modular office space 3 % 3 % 2 % 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, 2023, 2022 and 2021: General Specialty Total 2023 Equipment rentals $ 8,803 $ 3,261 $ 12,064 Sales of rental equipment 1,411 163 1,574 Sales of new equipment 95 123 218 Contractor supplies sales 89 57 146 Service and other revenues 299 31 330 Total revenue 10,697 3,635 14,332 Depreciation and amortization expense 2,316 465 2,781 Equipment rentals gross profit 3,219 1,595 4,814 Capital expenditures 3,051 813 3,864 Total assets $ 20,411 $ 5,178 $ 25,589 2022 Equipment rentals $ 7,345 $ 2,771 $ 10,116 Sales of rental equipment 835 130 965 Sales of new equipment 73 81 154 Contractor supplies sales 81 45 126 Service and other revenues 250 31 281 Total revenue 8,584 3,058 11,642 Depreciation and amortization expense 1,765 452 2,217 Equipment rentals gross profit 2,905 1,340 4,245 Capital expenditures 2,868 822 3,690 Total assets $ 19,604 $ 4,579 $ 24,183 2021 Equipment rentals $ 6,074 $ 2,133 $ 8,207 Sales of rental equipment 862 106 968 Sales of new equipment 142 61 203 Contractor supplies sales 71 38 109 Service and other revenues 202 27 229 Total revenue 7,351 2,365 9,716 Depreciation and amortization expense 1,611 372 1,983 Equipment rentals gross profit 2,269 998 3,267 Capital expenditures 2,719 479 3,198 Total assets $ 16,087 $ 4,205 $ 20,292 Equipment rentals gross profit is the primary measure management reviews to make operating decisions and assess segment performance. The following is a reconciliation of equipment rentals gross profit to income before provision for income taxes: Year Ended December 31, 2023 2022 2021 Total equipment rentals gross profit $ 4,814 $ 4,245 $ 3,267 Gross profit from other lines of business 999 751 586 Selling, general and administrative expenses (1,527) (1,400) (1,199) Merger related costs (1) — — (3) Restructuring charge (2) (28) — (2) Non-rental depreciation and amortization (431) (364) (372) Interest expense, net (635) (445) (424) Other income (expense), net 19 15 (7) Income before provision for income taxes $ 3,211 $ 2,802 $ 1,846 ___________________ (1) Reflects transaction costs associated with the General Finance acquisition that was completed in May 2021. Merger related costs only include costs associated with major acquisitions that significantly impact our operations. (2) Primarily relates to branch closure charges and severance costs associated with our restructuring programs. As of December 31, 2023, there were no open restructuring programs. We primarily operate in the United States and Canada, and have a limited presence in Europe, Australia and New Zealand. The foreign information in the table below primarily reflects Canada. The following table presents geographic area information for the years ended December 31, 2023, 2022 and 2021, except for balance sheet information, which is presented as of December 31, 2023 and 2022: Domestic Foreign Total 2023 Equipment rentals $ 11,045 $ 1,019 $ 12,064 Sales of rental equipment 1,427 147 1,574 Sales of new equipment 168 50 218 Contractor supplies sales 130 16 146 Service and other revenues 293 37 330 Total revenue 13,063 1,269 14,332 Rental equipment, net 12,679 1,322 14,001 Property and equipment, net 842 61 903 Goodwill and other intangible assets, net $ 6,031 $ 579 $ 6,610 2022 Equipment rentals $ 9,139 $ 977 $ 10,116 Sales of rental equipment 870 95 965 Sales of new equipment 122 32 154 Contractor supplies sales 109 17 126 Service and other revenues 248 33 281 Total revenue 10,488 1,154 11,642 Rental equipment, net 12,047 1,230 13,277 Property and equipment, net 789 50 839 Goodwill and other intangible assets, net $ 6,024 $ 454 $ 6,478 2021 Equipment rentals $ 7,430 $ 777 $ 8,207 Sales of rental equipment 873 95 968 Sales of new equipment 162 41 203 Contractor supplies sales 95 14 109 Service and other revenues 201 28 229 Total revenue $ 8,761 $ 955 $ 9,716 |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Assets | Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: December 31, 2023 2022 Equipment (1) $ 17 $ 17 Insurance 29 31 Advertising reimbursements (2) 22 25 Income taxes (3) 5 235 Other (4) 62 73 Prepaid expenses and other assets $ 135 $ 381 _________________ (1) Reflects refundable deposits on expected purchases, primarily of rental equipment, pursuant to advance purchase agreements. Such deposits are presented as a component of cash flows from operations when paid. (2) Reflects reimbursements due for advertising that promotes a vendor’s products or services. See note 2 ("Advertising Expense") for further detail. (3) Primarily relates to tax depreciation benefits associated with the Ahern Rentals acquisition discussed in note 4 to the consolidated financial statements. The tax depreciation deductions generated by the Ahern Rentals acquisition resulted in an income tax receivable associated with U.S. federal and state tax payments made prior to the acquisition. The decrease reflected above from December 31, 2022 to December 31, 2023 reflects the use of a portion of the receivable to reduce cash paid for income taxes. |
Rental Equipment
Rental Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Rental Equipment | Rental Equipment Rental equipment consists of the following: December 31, 2023 2022 Rental equipment $ 21,689 $ 20,074 Less accumulated depreciation (7,688) (6,797) Rental equipment, net $ 14,001 $ 13,277 Property and equipment consist of the following: December 31, 2023 2022 Land $ 157 $ 131 Buildings 296 230 Non-rental vehicles 268 317 Machinery and equipment 265 223 Furniture and fixtures 435 402 Leasehold improvements 567 516 1,988 1,819 Less accumulated depreciation and amortization (1,085) (980) Property and equipment, net $ 903 $ 839 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Rental Equipment Rental equipment consists of the following: December 31, 2023 2022 Rental equipment $ 21,689 $ 20,074 Less accumulated depreciation (7,688) (6,797) Rental equipment, net $ 14,001 $ 13,277 Property and equipment consist of the following: December 31, 2023 2022 Land $ 157 $ 131 Buildings 296 230 Non-rental vehicles 268 317 Machinery and equipment 265 223 Furniture and fixtures 435 402 Leasehold improvements 567 516 1,988 1,819 Less accumulated depreciation and amortization (1,085) (980) Property and equipment, net $ 903 $ 839 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023: General rentals Specialty Total Balance at January 1, 2021 (1) $ 4,368 $ 800 $ 5,168 Goodwill related to acquisitions (2) 76 295 371 Foreign currency translation and other adjustments 1 (12) (11) Balance at December 31, 2021 (1) 4,445 1,083 5,528 Goodwill related to acquisitions (2) (3) 549 (20) 529 Foreign currency translation and other adjustments (14) (17) (31) Balance at December 31, 2022 (1) 4,980 1,046 6,026 Goodwill related to acquisitions (2) (3) (209) 111 (98) Foreign currency translation and other adjustments 4 8 12 Balance at December 31, 2023 (1) $ 4,775 $ 1,165 $ 5,940 _________________ (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. Decreases in goodwill related to acquisitions above primarily reflect such measurement period adjustments. (3) For additional detail on the December 2022 acquisition of Ahern Rentals, which was assigned to our general rentals segment and accounted for most of the goodwill related to acquisitions in 2022, see note 4 to our consolidated financial statements. The decrease in goodwill related to acquisitions for the general rentals segment in 2023 primarily reflects measurement period adjustments associated with the Ahern Rentals acquisition, partially offset by other acquisition activity. Other intangible assets were comprised of the following at December 31, 2023 and 2022: December 31, 2023 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 4 years $ 176 $ 58 $ 118 Customer relationships 6 years $ 2,468 $ 1,919 $ 549 Trade names and associated trademarks 2 years $ 9 $ 6 $ 3 December 31, 2022 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 3 years $ 69 $ 22 $ 47 Customer relationships 5 years $ 2,349 $ 1,949 $ 400 Trade names and associated trademarks 3 years $ 14 $ 9 $ 5 Our other intangibles assets, net at December 31, 2023 include the assets set forth in the table below associated with the acquisition of Ahern Rentals that is discussed in note 4 to our consolidated financial statements. No residual value has been assigned to these assets. The non-compete agreements are being amortized on a straight-line basis and the customer relationships are being amortized using the sum of the years' digits method, and we believe that such methods best reflect the estimated pattern in which the economic benefits will be consumed. December 31, 2023 Weighted-Average Remaining Net Carrying Non-compete agreements 4 years 77 Customer relationships 8 years 259 Amortization expense for other intangible assets was $271, $219 and $233 for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, estimated amortization expense for other intangible assets for each of the next five years and thereafter was as follows: 2024 $ 208 2025 167 2026 124 2027 81 2028 39 Thereafter 51 Total $ 670 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 Self-insurance accruals $ 78 $ 68 Accrued compensation and benefit costs 149 207 Property and income taxes payable 139 113 Restructuring reserves (1) 21 6 Interest payable 152 152 Deferred revenue (2) 138 131 National accounts accrual 173 120 Operating lease liability 249 211 Other (3) 168 137 Accrued expenses and other liabilities $ 1,267 $ 1,145 _________________ (1) Primarily relates to branch closure charges and severance costs associated with our closed restructuring programs. As of December 31, 2023, there were no open restructuring programs. (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, 2023 2022 Self-insurance accruals $ 121 $ 109 Income taxes payable 11 11 Accrued compensation and benefit costs 41 34 Other long-term liabilities $ 173 $ 154 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of December 31, 2023 and 2022, the amounts of our assets and liabilities that were accounted for at fair value were immaterial. Fair value measurements are categorized in one of the following three levels based on the lowest level input that is significant to the fair value measurement in its entirety: Level 1—Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices in active markets for identical assets or liabilities include: a) quoted prices for similar assets or liabilities in active markets; b) quoted prices for identical or similar assets or liabilities in inactive markets; c) inputs other than quoted prices that are observable for the asset or liability; d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3—Inputs to the valuation methodology are unobservable (i.e., supported by little or no market activity) and significant to the fair value measure. Fair Value of Financial Instruments The carrying amounts reported in our consolidated balance sheets for accounts receivable, accounts payable and accrued expenses and other liabilities approximate fair value due to the immediate to short-term maturity of these financial instruments. The fair values of our variable rate debt facilities and finance leases approximated their book values as of December 31, 2023 and 2022. 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, 2023 and 2022 have been calculated based upon available market information, and were as follows: December 31, 2023 December 31, 2022 Carrying Fair Carrying Fair Senior notes $ 7,720 $ 7,442 $ 7,712 $ 7,143 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt, net of unamortized original issue premiums and unamortized debt issuance costs, consists of the following: December 31, 2023 2022 Repurchase facility expiring 2024 (1) $ 100 $ 100 Accounts receivable securitization facility expiring 2024 (1) 1,300 959 Term loan facility expiring 2025 (1) 945 953 $4.25 billion ABL facility expiring 2027 (1) 1,261 1,523 5 1 / 2 percent Senior Notes due 2027 498 498 3 7 / 8 percent Senior Secured Notes due 2027 745 744 4 7 / 8 percent Senior Notes due 2028 (2) 1,665 1,663 6 percent Senior Secured Notes due 2029 1,488 1,486 5 1 / 4 percent Senior Notes due 2030 745 744 4 percent Senior Notes due 2030 744 743 3 7 / 8 percent Senior Notes due 2031 1,091 1,090 3 3 / 4 percent Senior Notes due 2032 744 744 Finance leases 192 123 Total debt 11,518 11,370 Less short-term portion (3) (1,465) (161) Total long-term debt $ 10,053 $ 11,209 (1) The table below presents financial information associated with our variable rate indebtedness as of and for the year ended December 31, 2023. There is no borrowing capacity under the repurchase facility because it is an uncommitted facility. We have borrowed the full available amount under the term loan facility. The principal obligation under the term loan facility is required to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent per annum, with the balance due at the maturity of the facility. The average amount of debt outstanding under the term loan facility decreases slightly each quarter due to the requirement to repay a portion of the principal obligation. ABL facility Accounts receivable securitization facility Term loan facility Repurchase facility Borrowing capacity, net of letters of credit $ 2,967 $ — $ — Letters of credit 14 Interest rate at December 31, 2023 6.5 % 6.4 % 7.1 % 6.5 % Average month-end debt outstanding 1,694 1,171 953 50 Weighted-average interest rate on average debt outstanding 6.2 % 6.1 % 6.9 % 6.0 % Maximum month-end debt outstanding 1,848 1,300 958 100 (2) URNA separately issued 4 7 / 8 percent Senior Notes in August 2017 and in September 2017. Following the issuances, URNA 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. As of December 31, 2023, the total above is comprised of two separate 4 7 / 8 percent Senior Notes, one with a book value of $1.661 billion and one with a book value of $4. (3) As of December 31, 2023, short-term debt primarily reflected borrowings under the accounts receivable securitization and repurchase facilities and the short-term portion of our finance leases. As of December 31, 2022, short-term debt primarily reflected borrowings under the repurchase facility and the short-term portion of our finance leases. The accounts receivable securitization facility, which expires on June 24, 2024 and may be extended on a 364-day basis by mutual agreement with the purchasers under the facility, was not a short-term debt instrument as of December 31, 2022. The weighted average interest rates on our short-term debt, excluding finance leases, were 6.4 percent and 5.4 percent as of December 31, 2023 and 2022, respectively. See note 13 to the consolidated financial statements for further discussion on our finance leases. Short-term debt As of December 31, 2023, our short-term debt primarily reflects borrowings under the repurchase and accounts receivable securitization facilities and the short-term portion of our finance leases. Repurchase facility. In June 2022, URNA entered into an uncommitted repurchase facility pursuant to which it may obtain short-term financing in an amount up to $100, secured by a subordinated note issued to URNA by our U.S. special purpose vehicle which holds receivable assets relating to our accounts receivable securitization facility. In 2023, the repurchase facility was amended, primarily to extend the maturity date to June 14, 2024, which may be further extended by the mutual consent of the parties to the repurchase facility agreement. Additionally, the repurchase facility was amended to replace an interest rate based on SOFR with an interest rate based on the Bloomberg Short Term Bank Yield Index ("BSBY"). Any repurchase transaction will have a one-month maturity unless terminated earlier as a result of a termination event under the accounts receivable securitization facility or the occurrence of any other event of default under the repurchase facility. The Company will guarantee the obligations of URNA under the repurchase facility. See the table above for financial information associated with the repurchase facility. Accounts receivable securitization facility . The accounts receivable securitization facility expires on June 24, 2024 and may be extended on a 364-day basis by mutual agreement with the purchasers under the facility. Borrowings under the accounts receivable securitization facility bear interest based on SOFR. In 2023, the accounts receivable securitization facility was amended, primarily to increase the facility size to $1.3 billion. 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, 2023, there were $1.545 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). See the table above for financial information associated with the accounts receivable securitization facility. Long-term debt ABL facility. In June 2008, Holdings, URNA, and certain of our subsidiaries entered into a credit agreement providing for a five-year $1.25 billion ABL facility, a portion of which is available for borrowing in Canadian dollars. The ABL facility was subsequently upsized and extended, and a portion of the facility is also now available for borrowing in British pounds, Euros, Australian dollars and New Zealand dollars by certain subsidiaries of URNA in Europe, Australia and New Zealand. The size of the ABL facility was $4.25 billion as of December 31, 2023. 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 2027. 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 term SOFR or daily SOFR (in each case plus a 0.10 percent credit margin adjustment) or an alternate base rate, in each case plus a spread, (ii) in the case of loans in Canadian dollars, at a rate equal to the Canadian prime rate or an alternate rate (Bankers' Acceptance Rate), in each case plus a spread, (iii) in the case of loans in Euros, at a rate equal to the Euro interbank offered rate or an alternate base rate, in each case plus a spread, (iv) in the case of loans in British pounds, at a rate equal to the daily simple Sterling Overnight Interbank Average or an alternate base rate, in each case plus a spread or (v) in the case of loans in Australian Dollars or New Zealand Dollars, at a rate equal to the applicable bank bill rate or an alternate base rate, in each case plus a spread. The interest rates under the credit agreement are subject to change based on the availability in the facility. A commitment fee accrues on any unused portion of the commitments under the credit agreement at a fixed rate per annum. Ongoing extensions of credit under the credit agreement are subject to customary conditions, including sufficient availability under the borrowing base. As discussed below (see “Loan Covenants and Compliance”), the only financial covenant that currently exists in the ABL facility is the fixed charge coverage ratio. As of December 31, 2023, availability under the ABL facility has exceeded the required threshold and, as a result, this financial covenant was inapplicable. In addition, the credit agreement contains customary negative covenants applicable to Holdings, URNA and our subsidiaries, including negative covenants that restrict the ability of such entities to, among other things, (i) incur additional indebtedness or engage in certain other types of financing transactions, (ii) allow certain liens to attach to assets, (iii) repurchase, or pay dividends or make certain other restricted payments on, capital stock and certain other securities, (iv) prepay certain indebtedness and (v) make acquisitions and investments. The borrowings under the credit agreement by URNA 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 borrowings under the credit agreement by URNA are guaranteed by Holdings and, subject to certain exceptions, our domestic subsidiaries. Borrowings under the credit agreement by URNA’s Canadian subsidiaries are also secured by substantially all the assets of URNA’s Canadian subsidiaries and supported by guarantees from the Canadian subsidiaries and from Holdings and URNA, and, subject to certain exceptions, our domestic subsidiaries. Borrowings under the credit agreement by URNA’s subsidiaries in Europe, Puerto Rico, Australia and New Zealand are guaranteed by Holdings, URNA, URNA’s Canadian subsidiaries and, subject to certain exceptions, our domestic subsidiaries and secured by substantially all the assets of our U.S. subsidiaries (other than real property and certain accounts receivable) and substantially all the assets of URNA’s Canadian subsidiaries. Under the ABL facility, a change of control (as defined in the credit agreement) constitutes an event of default, entitling our lenders, among other things, to terminate our ABL facility and to require us to repay outstanding borrowings. Term loan facility . In October 2018, Holdings, URNA, and certain of our subsidiaries entered into a $1 billion senior secured term loan facility. See the table above for financial information associated with the term loan facility. The term loan facility is guaranteed by Holdings and the same domestic subsidiaries that guarantee the borrowings of URNA 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 borrowings of URNA 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. In 2023, the term loan facility was amended to transition to an interest rate based on SOFR. Prior to the amendment, interest on the term loan facility reflected LIBOR plus a margin (or an alternative base rate plus a margin). LIBOR has been discontinued as a reference rate as a result of reference rate reform, and the amendment of the term loan facility did not have a material impact on our financial statements. The term loan facility contains customary negative covenants applicable to URNA and its subsidiaries, including negative covenants that restrict the ability of such entities to, among other things, (i) incur additional indebtedness; (ii) incur additional liens; (iii) make dividends and other restricted payments; and (iv) engage in mergers, acquisitions and dispositions. The term loan facility does not include any financial covenants. Under the term loan facility, a change of control (as defined in the credit agreement) constitutes an event of default, entitling our lenders to, among other things, terminate the term loan facility and require us to repay outstanding loans. 5 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 “5 1 / 2 percent Notes”). In February 2017, URNA issued $250 aggregate principal amount of 5 1 / 2 percent Notes as an add-on to the existing 5 1 / 2 percent Notes. In May 2022, URNA redeemed $500 principal amount of the 5 1 / 2 percent Notes, and the aggregate principal amount of outstanding 5 1 / 2 percent Notes was $500 as of December 31, 2023. The notes issued in February 2017 have identical terms, and are fungible, with the existing 5 1 / 2 percent Notes. The 5 1 / 2 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 5 1 / 2 percent Notes may be redeemed on or after 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 5 1 / 2 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) additional indebtedness; (iii) mergers, consolidations and acquisitions; (iv) sales, transfers and other dispositions of assets; (v) loans and other investments; (vi) dividends and other distributions, stock repurchases and redemptions and other restricted payments; (vii) restrictions affecting subsidiaries; (viii) transactions with affiliates; and (ix) designations of unrestricted subsidiaries, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 5 1 / 2 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. The carrying value of the 5 1 / 2 percent Notes includes the $1 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 5 1 / 2 percent Notes, which includes the impact of the original issue premium, is 5.5 percent. 3 7 / 8 percent Senior Secured Notes due 2027. In November 2019, URNA issued $750 aggregate principal amount of 3 7 / 8 percent Senior Secured Notes (the “3 7 / 8 percent Notes”) which are due November 15, 2027. The 3 7 / 8 percent Notes are guaranteed by Holdings and certain domestic subsidiaries of URNA and are secured on a second-priority basis by liens on substantially all of URNA’s and the guarantors’ assets that secure the ABL facility and the term loan facility, subject to certain exceptions. The 3 7 / 8 percent Notes may be redeemed on or after November 15, 2022, at specified redemption prices that range from 101.938 percent in 2022, to 100 percent in 2025 and thereafter, in each case, plus accrued and unpaid interest, if any. In addition, at any time on or prior to November 15, 2022, up to 40 percent of the aggregate principal amount of the 3 7 / 8 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 103.875 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 3 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens and (ii) mergers and consolidations, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the requirements to provide subsidiary guarantees, to give further assurances and to make an offer to repurchase the notes upon the occurrence of a change of control will not apply to URNA and its restricted subsidiaries during any period when the 3 7 / 8 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 3 7 / 8 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. 4 7 / 8 percent Senior Notes due 2028 . In August 2017, URNA issued $925 principal amount of 4 7 / 8 percent Senior Notes (the “Initial 4 7 / 8 percent Notes”) which are due January 15, 2028. The 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 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, which includes the impact of the original issue premium, 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, 2023, the principal amounts outstanding were $1.669 billion for the Initial 4 7 / 8 percent Notes and $4 for the Subsequent 4 7 / 8 percent Notes. The carrying value of the Initial 4 7 / 8 percent Notes includes $1 of the unamortized original issue premium, which is being amortized through the maturity date in 2028. The effective interest rate on the Initial 4 7 / 8 percent Notes, which includes the impact of the original issue premium, is 4.86 percent. 6 percent Senior Secured Notes due 2029 . In November 2022, URNA issued $1.500 billion aggregate principal amount of 6 percent Senior Secured Notes (the “6 percent Notes”) which are due December 15, 2029. The 6 percent Notes are guaranteed by Holdings and certain domestic subsidiaries of URNA and are secured on a first-priority basis by liens on substantially all of URNA’s and the guarantors’ assets that secure the ABL facility and the term loan facility, subject to certain exceptions. The 6 percent Notes may be redeemed on or after December 15, 2025, at specified redemption prices that range from 103.000 percent in 2025, to 100 percent in 2027 and thereafter, in each case, plus accrued and unpaid interest, if any. Up to 10 percent of the aggregate principal amount of the 6 percent Notes may also be redeemed during each period from (i) the issue date to, but excluding, December 15, 2023, (ii) December 15, 2023 to, but excluding, December 15, 2024 and (iii) December 15, 2024 to, but excluding, December 15, 2025, at a redemption price equal to 103.000 percent plus accrued and unpaid interest, if any. In addition, at any time on or prior to December 15, 2025, up to 40 percent of the aggregate principal amount of the 6 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 106.000 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 6 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens and (ii) mergers and consolidations, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the requirements to provide subsidiary guarantees, to give further assurances and to make an offer to repurchase the notes upon the occurrence of a change of control will not apply to URNA and its restricted subsidiaries during any period when the 6 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 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 / 4 percent Senior Notes due 2030. In May 2019, URNA issued $750 aggregate principal amount of 5 1 / 4 percent Senior Notes (the “5 1 / 4 percent Notes”) which are due January 15, 2030. The 5 1 / 4 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 5 1 / 4 percent Notes may be redeemed on or after January 15, 2025, at specified redemption prices that range from 102.625 percent in 2025, to 100 percent in 2028 and thereafter, in each case, plus accrued and unpaid interest, if any. In addition, at any time on or prior to January 15, 2023, up to 40 percent of the aggregate principal amount of the 5 1 / 4 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 105.250 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 5 1 / 4 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens; (ii) mergers and consolidations; and (iii) dividends and other distributions, stock repurchases and redemptions and other restricted payments, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the covenant relating to dividends and other distributions, stock repurchases and redemptions and other restricted payments and the requirements relating to additional subsidiary guarantors will not apply to URNA and its restricted subsidiaries during any period when the 5 1 / 4 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 5 1 / 4 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. 4 percent Senior Notes due 2030. In February 2020, URNA issued $750 aggregate principal amount of 4 percent Notes which are due July 15, 2030. The 4 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 4 percent Notes may be redeemed on or after July 15, 2025, at specified redemption prices that range from 102.000 percent in 2025, to 100 percent in 2028 and thereafter, in each case, plus accrued and unpaid interest, if any. In addition, at any time on or prior to July 15, 2023, up to 40 percent of the aggregate principal amount of the 4 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 104.000 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 4 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens and (ii) mergers and consolidations, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the requirements to provide subsidiary guarantees and to make an offer to repurchase the notes upon the occurrence of a change of control will not apply to URNA and its restricted subsidiaries during any period when the 4 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 4 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. 3 7 / 8 percent Senior Notes due 2031. In August 2020, URNA issued $1.100 billion aggregate principal amount of 3 7 / 8 percent Senior Notes (the “3 7 / 8 percent Notes”) which are due February 15, 2031. The 3 7 / 8 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 3 7 / 8 percent Notes may be redeemed on or after August 15, 2025, at specified redemption prices that range from 101.938 percent in 2025, to 100 percent in 2028 and thereafter, in each case, plus accrued and unpaid interest, if any. In addition, at any time on or prior to August 15, 2023, up to 40 percent of the aggregate principal amount of the 3 7 / 8 percent Notes may be redeemed with the net cash proceeds of certain equity offerings at a redemption price equal to 103.875 percent of the aggregate principal amount of the notes plus accrued and unpaid interest, if any. The indenture governing the 3 7 / 8 percent Notes contains certain restrictive covenants, including, among others, limitations on (i) liens and (ii) mergers and consolidations, as well as a requirement to timely file periodic reports with the SEC. Each of the restrictive covenants is subject to important exceptions and qualifications that would allow URNA and its subsidiaries to engage in these activities under certain conditions. In addition, the requirements to provide subsidiary guarantees and to make an offer to repurchase the notes upon the occurrence of a change of control will not apply to URNA and its restricted subsidiaries during any period when the 3 7 / 8 percent Notes are rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA, provided at such time no default under the indenture has occurred and is continuing. The indenture also requires that, in the event of a change of control (as defined in the indenture), URNA must make an offer to purchase all of the then-outstanding 3 7 / 8 percent Notes tendered at a purchase price in cash equal to 101 percent of the principal amount thereof, plus accrued and unpaid interest, if any, thereon. 3 3 / 4 percent Senior Notes due 2032. In August 2021, URNA issued $750 aggregate principal amount of 3 3 / 4 percent Senior Notes (the “3 3 / 4 percent Notes”) which are due January 15, 2032. The 3 3 / 4 percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA. The 3 3 / 4 percent Notes may be redeemed on or after July 15, 2026, at specified redemption prices that range from 101.875 percent in 2026, to |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases As discussed in note 3 to the consolidated financial statements, most of our equipment rental revenue is accounted for as lease revenue under Topic 842 (such revenue represented 76 percent of our total revenues for the year ended December 31, 2023). See note 3 for a discussion of our revenue accounting (such discussion includes lessor disclosures required under Topic 842). We determine if an arrangement is a lease at inception. Our material lease contracts are generally for real estate or vehicles, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. We lease real estate and equipment under operating leases. We lease a significant portion of our branch locations, and also lease other premises used for purposes such as district and regional offices and service centers. Our finance lease obligations consist primarily of rental equipment (primarily vehicles) and building leases. Operating leases result in the recognition of 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. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Our lease terms may include options, at our sole discretion, to extend or terminate the lease that we are reasonably certain to exercise. The amount of payments associated with such options reflected in the “Maturity of lease liabilities” table below is not material. Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense on such leases is recognized on a straight-line basis over the lease term. The primary leases we enter into with initial terms of 12 months or less are for equipment that we rent from vendors and then rent to our customers. We generate sublease revenue from such leases that we refer to as "re-rent revenue" as discussed in note 3 to the consolidated financial statements. Apart from the re-rent revenue discussed in note 3, we do not generate material sublease income. We have lease agreements with lease and non-lease components, and, for our real estate operating leases, we account for the lease and non-lease components as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The tables below present financial information associated with our leases as of December 31, 2023 and 2022, and for the years ended December 31, 2023, 2022 and 2021. Classification December 31, 2023 December 31, 2022 Assets Operating lease assets Operating lease right-of-use assets (1) $ 1,099 $ 819 Finance lease assets Rental equipment 395 321 Less accumulated depreciation (126) (104) Rental equipment, net 269 217 Property and equipment, net: Non-rental vehicles 8 8 Buildings 66 25 Less accumulated depreciation and amortization (27) (20) Property and equipment, net 47 13 Total leased assets 1,415 1,049 Liabilities Current Operating Accrued expenses and other liabilities 249 211 Finance Short-term debt and current maturities of long-term debt 55 51 Long-term Operating Operating lease liabilities (1) 895 642 Finance Long-term debt 137 72 Total lease liabilities $ 1,336 $ 976 _________________ (1) The increases in 2023 include the impact of the Ahern Rentals acquisition discussed in note 4 to the consolidated financial statements. Lease cost Classification Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Operating lease cost (1) Cost of equipment rentals, excluding depreciation (1) $ 582 $ 494 $ 432 Selling, general and administrative expenses 12 11 11 Restructuring charge (2) 27 — 1 Finance lease cost Amortization of leased assets Depreciation of rental equipment 36 31 36 Non-rental depreciation and amortization 2 2 2 Interest on lease liabilities Interest expense, net 8 5 4 Sublease income (3) (233) (235) (194) Net lease cost $ 434 $ 308 $ 292 _________________ (1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the years ended December 31, 2023, 2022 and 2021 includes $209, $195 and $163, respectively, of short-term lease costs associated with equipment that we rent from vendors and then rent to our customers, as discussed further above. Apart from these costs, short-term lease costs are immaterial. (2) The increase in 2023 reflects the impact of a restructuring program initiated following the closing of the Ahern Rentals acquisition. (3) Primarily reflects re-rent revenue as discussed further above. Maturity of lease liabilities (as of December 31, 2023) Operating leases (1) Finance leases (2) 2024 $ 295 $ 61 2025 259 54 2026 219 40 2027 168 24 2028 115 6 Thereafter 275 44 Total 1,331 229 Less amount representing interest (187) (37) Present value of lease liabilities $ 1,144 $ 192 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of December 31, 2023. The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. (2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. Lease term and discount rate December 31, 2023 December 31, 2022 Weighted-average remaining lease term (years) Operating leases 6.2 4.8 Finance leases 6.5 2.8 Weighted-average discount rate Operating leases 4.5 % 3.7 % Finance leases 4.8 % 3.5 % Other information Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 304 $ 244 $ 221 Operating cash flows from finance leases 8 5 4 Financing cash flows from finance leases 64 57 69 Leased assets obtained in exchange for new operating lease liabilities (1) 538 237 299 Leased assets obtained in exchange for new finance lease liabilities (1) $ 132 $ 47 $ 66 _________________ |
Leases | Leases As discussed in note 3 to the consolidated financial statements, most of our equipment rental revenue is accounted for as lease revenue under Topic 842 (such revenue represented 76 percent of our total revenues for the year ended December 31, 2023). See note 3 for a discussion of our revenue accounting (such discussion includes lessor disclosures required under Topic 842). We determine if an arrangement is a lease at inception. Our material lease contracts are generally for real estate or vehicles, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. We lease real estate and equipment under operating leases. We lease a significant portion of our branch locations, and also lease other premises used for purposes such as district and regional offices and service centers. Our finance lease obligations consist primarily of rental equipment (primarily vehicles) and building leases. Operating leases result in the recognition of 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. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Our lease terms may include options, at our sole discretion, to extend or terminate the lease that we are reasonably certain to exercise. The amount of payments associated with such options reflected in the “Maturity of lease liabilities” table below is not material. Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense on such leases is recognized on a straight-line basis over the lease term. The primary leases we enter into with initial terms of 12 months or less are for equipment that we rent from vendors and then rent to our customers. We generate sublease revenue from such leases that we refer to as "re-rent revenue" as discussed in note 3 to the consolidated financial statements. Apart from the re-rent revenue discussed in note 3, we do not generate material sublease income. We have lease agreements with lease and non-lease components, and, for our real estate operating leases, we account for the lease and non-lease components as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The tables below present financial information associated with our leases as of December 31, 2023 and 2022, and for the years ended December 31, 2023, 2022 and 2021. Classification December 31, 2023 December 31, 2022 Assets Operating lease assets Operating lease right-of-use assets (1) $ 1,099 $ 819 Finance lease assets Rental equipment 395 321 Less accumulated depreciation (126) (104) Rental equipment, net 269 217 Property and equipment, net: Non-rental vehicles 8 8 Buildings 66 25 Less accumulated depreciation and amortization (27) (20) Property and equipment, net 47 13 Total leased assets 1,415 1,049 Liabilities Current Operating Accrued expenses and other liabilities 249 211 Finance Short-term debt and current maturities of long-term debt 55 51 Long-term Operating Operating lease liabilities (1) 895 642 Finance Long-term debt 137 72 Total lease liabilities $ 1,336 $ 976 _________________ (1) The increases in 2023 include the impact of the Ahern Rentals acquisition discussed in note 4 to the consolidated financial statements. Lease cost Classification Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Operating lease cost (1) Cost of equipment rentals, excluding depreciation (1) $ 582 $ 494 $ 432 Selling, general and administrative expenses 12 11 11 Restructuring charge (2) 27 — 1 Finance lease cost Amortization of leased assets Depreciation of rental equipment 36 31 36 Non-rental depreciation and amortization 2 2 2 Interest on lease liabilities Interest expense, net 8 5 4 Sublease income (3) (233) (235) (194) Net lease cost $ 434 $ 308 $ 292 _________________ (1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the years ended December 31, 2023, 2022 and 2021 includes $209, $195 and $163, respectively, of short-term lease costs associated with equipment that we rent from vendors and then rent to our customers, as discussed further above. Apart from these costs, short-term lease costs are immaterial. (2) The increase in 2023 reflects the impact of a restructuring program initiated following the closing of the Ahern Rentals acquisition. (3) Primarily reflects re-rent revenue as discussed further above. Maturity of lease liabilities (as of December 31, 2023) Operating leases (1) Finance leases (2) 2024 $ 295 $ 61 2025 259 54 2026 219 40 2027 168 24 2028 115 6 Thereafter 275 44 Total 1,331 229 Less amount representing interest (187) (37) Present value of lease liabilities $ 1,144 $ 192 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of December 31, 2023. The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. (2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. Lease term and discount rate December 31, 2023 December 31, 2022 Weighted-average remaining lease term (years) Operating leases 6.2 4.8 Finance leases 6.5 2.8 Weighted-average discount rate Operating leases 4.5 % 3.7 % Finance leases 4.8 % 3.5 % Other information Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 304 $ 244 $ 221 Operating cash flows from finance leases 8 5 4 Financing cash flows from finance leases 64 57 69 Leased assets obtained in exchange for new operating lease liabilities (1) 538 237 299 Leased assets obtained in exchange for new finance lease liabilities (1) $ 132 $ 47 $ 66 _________________ |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the provision (benefit) for income taxes for each of the three years in the period ended December 31, 2023 are as follows: Year ended December 31, 2023 2022 2021 Current Federal $ 561 $ (34) $ 78 Foreign 66 100 26 State and local 125 94 88 752 160 192 Deferred Federal 5 525 260 Foreign 13 (16) 14 State and local 17 28 (6) 35 537 268 Total $ 787 $ 697 $ 460 A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rate of 21 percent to the income before provision (benefit) for income taxes for each of the three years in the period ended December 31, 2023 is as follows: Year ended December 31, 2023 2022 2021 Computed tax at statutory tax rate $ 674 $ 588 $ 388 State income taxes, net of federal tax benefit 116 102 64 Other permanent items (3) 18 1 Change in federal valuation allowance (15) 15 — Foreign restructuring (1) — (37) — Foreign tax rate differential 15 11 7 Total $ 787 $ 697 $ 460 _________________ (1) Reflects the impact of aligning the legal entity structure in Australia and New Zealand with our other foreign operations, which resulted in a tax depreciation benefit. The components of deferred income tax assets (liabilities) are as follows: December 31, 2023 December 31, 2022 Reserves and allowances $ 193 $ 186 Debt cancellation and other 17 18 Net operating loss and credit carryforwards 97 171 Interest carryforward (1) — 84 Operating lease assets 287 216 Total deferred tax assets 594 675 Less: valuation allowance (2) (4) (19) Total net deferred tax assets 590 656 Property and equipment, including rental equipment (2,921) (2,986) Operating lease liabilities (285) (216) Intangibles (85) (125) Total deferred tax liability (3,291) (3,327) Total net deferred tax liability $ (2,701) $ (2,671) _________________ (1) Relates to the limitation of deductible interest, and is primarily due to tax depreciation benefits associated with the Ahern Rentals acquisition (see note 6 to the consolidated financial statements for further discussion of the tax depreciation benefits). (2) Relates to federal foreign tax credits, state net operating loss carryforwards and state tax credits that may not be realized. The following table summarizes the activity related to unrecognized tax benefits, some of which would impact our effective tax rate if recognized: 2023 2022 2021 Balance at January 1 $ 16 $ 13 $ 12 Additions for tax positions related to the current year 3 1 2 Additions for tax positions of prior years 8 7 — Settlements (1) (5) (1) Balance at December 31 $ 26 $ 16 $ 13 We include interest accrued on the underpayment of income taxes in interest expense, net, and penalties, if any, related to unrecognized tax benefits in selling, general and administrative expense. The amounts of such interest or penalties were not material (approximately $1 or less) in each of the years ended December 31, 2023, 2022 and 2021. We believe that it is reasonably possible that a decrease of up to $10 in federal and state unrecognized tax benefits may be necessary within the next year, as a result of settlements. 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 2012. For financial reporting purposes, income before provision for income taxes for our foreign subsidiaries was $285, $233 and $134 for the years ended December 31, 2023, 2022 and 2021, respectively. We have historically considered the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested, and, accordingly, no taxes were provided on such earnings prior to the fourth quarter of 2020. In 2021, we remitted the cumulative amount of identified cash in our foreign operations in excess of near-term working capital needs. The taxes recorded associated with the remitted cash were immaterial. We continue to expect that the remaining balance of our undistributed foreign earnings will be indefinitely reinvested. If we determine that all or a portion of such foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. At December 31, 2023, unremitted earnings of foreign subsidiaries were $1.276 billion. Determination of the amount of unrecognized deferred tax liability on these unremitted earnings is not practicable. We have net operating loss carryforwards (“NOLs”) of $57 for federal income tax purposes, $10 of which will expire in 2037 (while the remaining federal NOLs have an indefinite life), $15 for foreign income tax purposes (the majority of which has an indefinite life) and $425 for state income tax purposes that expire from 2024 through 2034. The European Union (“EU”) member states formally adopted the EU’s Pillar Two Directive, which was established by the Organization for Economic Co-operation and Development, and which generally provides for a 15 percent minimum effective tax rate for multinational enterprises, in every jurisdiction in which they operate. While we do not anticipate that this will have a material impact on our tax provision or effective tax rate, we continue to monitor evolving tax legislation in the jurisdictions in which we operate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to a number of claims and proceedings that generally arise in the ordinary conduct of our business. These matters include, but are not limited to, general liability claims (including personal injury, product liability, and property and automobile claims), indemnification and guarantee obligations, employee injuries and employment-related claims, self-insurance obligations and contract and real estate matters. Based on advice of counsel and available information, including current status or stage of proceeding, and taking into account accruals included in our consolidated balance sheets for matters where we have established them, we currently believe that any liabilities ultimately resulting from these ordinary course claims and proceedings will not, individually or in the aggregate, have a material adverse effect on our consolidated financial position, results of operations or cash flows. Indemnification The Company indemnifies its officers and directors pursuant to indemnification agreements and may in addition indemnify these individuals as permitted by Delaware law. Employee Benefit Plans We currently sponsor two defined contribution 401(k) retirement plans, which are subject to the provisions of the Employee Retirement Income Security Act of 1974. We also sponsor a deferred profit sharing plan and a registered retirement savings plan for the benefit of the full-time employees of our Canadian subsidiaries, and also make contributions for employees in Australia and New Zealand. Under these plans, we match a percentage of the participants’ contributions up to a specified amount. Company contributions to the plans were $56, $45 and $36 in the years ended December 31, 2023, 2022 and 2021, respectively. Environmental Matters |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Common Stock | Common Stock We have 500 million authorized shares of common stock, $0.01 par value. At December 31, 2023 and 2022, there were 0.0 million shares of common stock reserved for issuance pursuant to options granted under our stock option plans. As of December 31, 2023, there were an aggregate of 0.4 million outstanding time and performance-based RSUs and 1.2 million shares available for grants of stock and options under our 2019 Long Term Incentive Plan. A summary of the transactions within the Company’s stock option plans follows (shares in thousands): Shares Weighted-Average Outstanding at December 31, 2022 5 80.45 Granted — — Exercised (2) 80.94 Canceled — — Outstanding at December 31, 2023 3 80.17 Exercisable at December 31, 2023 3 $ 80.17 The following table presents information associated with stock options as of December 31, 2023 and 2022, and for the years ended December 31, 2023, 2022 and 2021. No stock options were granted during any of the years presented below. 2023 2022 2021 Intrinsic value of options outstanding as of December 31 $ 2 $ 1 Intrinsic value of options exercisable as of December 31 2 1 Intrinsic value of options exercised 1 — 1 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 251 thousand shares of common stock issued upon vesting of RSUs during 2023, net of 161 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, 2023 2022 2021 RSUs granted 179 553 348 Weighted-average grant date price per unit $ 461.37 $ 309.39 $ 297.02 As of December 31, 2023, the total pretax compensation cost not yet recognized by the Company with regard to unvested RSUs was $55. The weighted-average period over which this compensation cost is expected to be recognized is 1.6 years. A summary of RSU activity for the year ended December 31, 2023 follows (RSUs in thousands): Stock Units Weighted-Average Nonvested as of December 31, 2022 464 $ 215.23 Granted 179 461.37 Vested (319) 297.27 Forfeited (36) 353.26 Nonvested as of December 31, 2023 288 $ 360.41 The total fair value of RSUs vested during the fiscal years ended December 31, 2023, 2022 and 2021 was $95, $120, and $94, respectively. Dividend Policy . Our Board of Directors approved a quarterly dividend program in January 2023, and the first such dividend under the program was paid in February 2023. The payment of any future dividends or the authorization of stock repurchases or other recapitalizations will be determined by our Board of Directors in light of conditions then existing, including earnings, financial condition and capital requirements, financing agreements, business conditions, stock price and other factors. The terms of certain agreements governing our outstanding indebtedness contain certain limitations on our ability to move operating cash flows to Holdings and/or to pay dividends on, or effect repurchases of, our common stock. In addition, under Delaware law, dividends may only be paid out of surplus or current or prior year’s net profits. Stockholders’ Rights Plan. Our stockholders' rights plan expired in accordance with its terms in 2011. Our Board of Directors elected not to renew or extend the plan. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) First Second Third Fourth Full For the year ended December 31, 2023 (1) (2): Total revenues (1) $ 3,285 $ 3,554 $ 3,765 $ 3,728 $ 14,332 Gross profit 1,241 1,425 1,585 1,562 5,813 Operating income 740 925 1,099 1,063 3,827 Net income (2) 451 591 703 679 2,424 Earnings per share—basic 6.50 8.60 10.30 10.04 35.40 Earnings per share—diluted (3) 6.47 8.58 10.29 10.01 35.28 For the year ended December 31, 2022 (1) (2): Total revenues (1) $ 2,524 $ 2,771 $ 3,051 $ 3,296 $ 11,642 Gross profit 992 1,150 1,366 1,488 4,996 Operating income 572 715 921 1,024 3,232 Net income (2) 367 493 606 639 2,105 Earnings per share—basic 5.07 6.91 8.69 9.20 29.77 Earnings per share—diluted (3) 5.05 6.90 8.66 9.15 29.65 (1) Beginning in 2021 and continuing through 2023, we have experienced broad-based strength of demand across our end-markets. The revenue increases above reflect this strong demand, as well as the impact of the December 2022 Ahern Rentals acquisition that is discussed in note 4 to the consolidated financial statements. (2) There were no unusual or infrequently occurring items recognized in the fourth quarter of 2023 that had a material impact on our financial statements. In the fourth quarter of 2022, we issued $1.5 billion principal amount of 6 percent Senior Secured Notes due 2029. The issued debt, together with drawings on our ABL facility, was used to fund the December 2022 Ahern Rentals acquisition that is discussed in note 4 to the consolidated financial statements. (3) Diluted earnings per share includes the after-tax impacts of the following: First Second Third Fourth Full For the year ended December 31, 2023: Merger related intangible asset amortization (4) $ (0.70) $ (0.55) $ (0.57) $ (0.52) $ (2.33) Impact on depreciation related to acquired fleet and property and equipment (5) (0.32) (0.30) (0.59) (0.44) (1.65) Impact of the fair value mark-up of acquired fleet (6) (0.44) (0.25) (0.23) (0.25) (1.17) Restructuring charge (7) (0.02) (0.20) (0.05) (0.04) (0.31) For the year ended December 31, 2022: Merger related intangible asset amortization (4) $ (0.52) $ (0.45) $ (0.44) $ (0.39) $ (1.79) Impact on depreciation related to acquired fleet and property and equipment (5) (0.10) (0.26) (0.12) (0.08) (0.56) Impact of the fair value mark-up of acquired fleet (6) (0.06) (0.05) (0.05) (0.12) (0.29) Restructuring charge (7) — — 0.01 — — Asset impairment charge (8) — (0.02) (0.01) — (0.03) Loss on repurchase/redemption of debt securities (9) — (0.18) — — (0.18) (4) This reflects the amortization of the intangible assets acquired in the major acquisitions that significantly impact our operations (the "major acquisitions," each of which had annual revenues of over $200 prior to acquisition). The increases in 2023 primarily reflect the impact of the Ahern Rentals acquisition. (5) This reflects the impact of extending the useful lives of equipment acquired in certain major acquisitions, net of the impact of additional depreciation associated with the fair value mark-up of such equipment. The increases in 2023 primarily reflect the impact of the Ahern Rentals acquisition. (6) This reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment acquired in certain major acquisitions that was subsequently sold. The increases in 2023 primarily reflect the impact of the Ahern Rentals acquisition. (7) This primarily reflects severance costs and branch closure charges associated with our restructuring programs. The increases in 2023 reflect charges associated with a restructuring program initiated following the closing of the Ahern Rentals acquisition. As of December 31, 2023, there were no open restructuring programs. (8) This reflects write-offs of leasehold improvements and other fixed assets. (9) Reflects the difference between the net carrying amount and the total purchase price of the redeemed notes. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (shares in thousands): Year Ended December 31, 2023 2022 2021 Numerator: Net income available to common stockholders $ 2,424 $ 2,105 $ 1,386 Denominator: Denominator for basic earnings per share—weighted-average common shares 68,470 70,703 72,432 Effect of dilutive securities: Employee stock options 4 4 4 Restricted stock units 236 266 381 Denominator for diluted earnings per share—adjusted weighted-average common shares 68,710 70,973 72,817 Basic earnings per share $ 35.40 $ 29.77 $ 19.14 Diluted earnings per share $ 35.28 $ 29.65 $ 19.04 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | The rollforward of our allowance for credit losses (in total, and associated with revenues arising from both Topic 606 and Topic 842) is shown below. Year ended December 31, 2023 2022 2021 Beginning balance $ 134 $ 112 $ 108 Charged to costs and expenses (1) 14 11 5 Charged to revenue (2) 60 49 31 Deductions and other (3) (39) (38) (32) Ending balance $ 169 $ 134 $ 112 _________________ (1) Reflects bad debt expenses recognized within selling, general and administrative expenses (associated with Topic 606 revenues). (2) Primarily reflects credit losses associated with lease revenues that were recognized as a reduction to equipment rentals revenue (primarily associated with Topic 842 revenues). (3) Primarily represents write-offs of accounts, net of immaterial recoveries and other activity. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS UNITED RENTALS, INC. (In millions) Description Balance at Charged to Charged to Deductions and Other Balance Year Ended December 31, 2023: Allowance for credit losses $ 134 $ 14 (a) $ 60 (a) $ 39 (b) $ 169 Reserve for obsolescence and shrinkage 18 50 — 51 (c) 17 Self-insurance reserve 177 274 — 252 (d) 199 Year Ended December 31, 2022: Allowance for credit losses $ 112 $ 11 (a) $ 49 (a) $ 38 (b) $ 134 Reserve for obsolescence and shrinkage 11 42 — 35 (c) 18 Self-insurance reserve 151 236 — 210 (d) 177 Year Ended December 31, 2021: Allowance for credit losses $ 108 $ 5 (a) $ 31 (a) $ 32 (b) $ 112 Reserve for obsolescence and shrinkage 8 37 — 34 (c) 11 Self-insurance reserve 127 179 — 155 (d) 151 The above information reflects the continuing operations of the Company for the periods presented. Additionally, because the Company has retained certain self-insurance liabilities associated with the discontinued traffic control business, those amounts have been included as well. (a) Amounts charged to cost and expenses reflect bad debt expenses recognized within selling, general and administrative expenses. The amounts charged to revenue primarily reflect credit losses associated with lease revenues that were recognized as a reduction to equipment rentals revenue. (b) Primarily represents write-offs of accounts, net of recoveries and other activity. (c) Primarily represents write-offs. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||||||||||
Net income available to common stockholders | $ 679 | $ 703 | $ 591 | $ 451 | $ 639 | $ 606 | $ 493 | $ 367 | $ 2,424 | $ 2,105 | $ 1,386 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Cash Equivalents | Cash Equivalents |
Allowance for Credit Losses | Allowance for Credit Losses |
Inventory | Inventory |
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 Accounts payable as of December 31, 2023 includes $74 of amounts due but unpaid for purchases of rental equipment. The net impact of accrued purchases of rental equipment was not material for the years ended December 31, 2022 and 2021. |
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 three |
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. Goodwill is calculated as the excess of the cost of the acquired business over the net of the fair value of the assets acquired and the liabilities assumed. 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. 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 can be 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). When conducting the goodwill impairment test, we are required to compare the fair value of our reporting units (which are our regions) with the carrying amount. As discussed in note 5 to our consolidated financial statements, our divisions are our operating segments. We conduct the goodwill impairment test at the reporting unit level, which is one level below the operating segment level. 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. We estimate the fair value of our reporting units 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. We believe this approach, which utilizes multiple valuation techniques, yields the most appropriate evidence of fair value. In connection with our goodwill impairment test that was conducted as of October 1, 2023, we bypassed the optional qualitative assessment for each reporting unit and quantitatively compared the fair values of our reporting units with their carrying amounts. Our goodwill impairment testing as of this date indicated that all of our reporting units, excluding our Mobile Storage reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 54 percent. We completed the acquisition of General Finance in May 2021, and all of the assets in the Mobile Storage reporting unit were acquired in the General Finance acquisition. The estimated fair value of our Mobile Storage reporting unit exceeded its carrying amount by eight percent. As all of the assets in the Mobile Storage reporting unit were recorded at fair value as of the May 2021 acquisition date, we expected the percentage by which the fair value for this reporting unit exceeded the carrying value to be significantly less than the equivalent percentages determined for our other reporting units. In connection with our goodwill impairment test that was conducted as of October 1, 2022, we bypassed the optional qualitative assessment for each reporting unit and quantitatively compared the fair values of our reporting units with their carrying amounts. Our goodwill impairment testing as of this date indicated that all of our reporting units, excluding our Mobile Storage reporting unit, had estimated fair values which exceeded their respective carrying amounts by at least 37 percent. We completed the acquisition of General Finance in May 2021, and all of the assets in the Mobile Storage reporting unit were acquired in the General Finance acquisition. The estimated fair value of our Mobile Storage reporting unit exceeded its carrying |
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 five eight five |
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 |
Lease Revenues (Topic 842) | Lease revenues (Topic 842) The accounting for the significant types of revenue that are accounted for under Topic 842 is discussed below. Owned equipment rentals: Owned equipment rentals represent revenues from renting equipment that we own. We account for such rentals as operating leases. Re-rent revenue: Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. Lease revenues (Topic 842) The accounting for the types of revenue that are accounted for under Topic 842 is discussed below. Owned equipment rentals represent our most significant revenue type (they accounted for 69 percent of total revenues for the year ended December 31, 2023) and are governed by our standard rental contract. We account for such rentals as operating leases. The lease terms are included in our contracts, and the determination of whether our contracts contain leases generally does not require significant assumptions or judgments. Our lease revenues do not include material amounts of variable payments. Owned equipment rentals: Owned equipment rentals represent revenues from renting equipment that we own. We do not generally provide an option for the lessee to purchase the rented equipment at the end of the lease, and do not generate material revenue from sales of equipment under such options. We recognize revenues from renting equipment on a straight-line basis. Our rental contract periods are hourly, daily, weekly or monthly. By way of example, if a customer were to rent a piece of equipment and the daily, weekly and monthly rental rates for that particular piece were (in actual dollars) $100, $300 and $900, respectively, we would recognize revenue of $32.14 per day. The daily rate for recognition purposes is calculated by dividing the monthly rate of $900 by the monthly term of 28 days. This daily rate assumes that the equipment will be on rent for the full 28 days, as we are unsure of when the customer will return the equipment and therefore unsure of which rental contract period will apply. As part of this straight-line methodology, when the equipment is returned, we recognize as incremental revenue the excess, if any, between the amount the customer is contractually required to pay, which is based on the rental contract period applicable to the actual number of days the equipment was out on rent, over the cumulative amount of revenue recognized to date. In any given accounting period, we will have customers return equipment and be contractually required to pay us more than the cumulative amount of revenue recognized to date under the straight-line methodology. For instance, continuing the above example, if the customer rented the above piece of equipment on December 29 and returned it at the close of business on January 1, we would recognize incremental revenue on January 1 of $171.44 (in actual dollars, representing the difference between the amount the customer is contractually required to pay, or $300 at the weekly rate, and the cumulative amount recognized to date on a straight-line basis, or $128.56, which represents four days at $32.14 per day). We record amounts billed to customers in excess of recognizable revenue as deferred revenue on our balance sheet. We had deferred revenue (associated with both Topic 842 and Topic 606) of $138 and $131 as of December 31, 2023 and 2022, respectively. As noted above, we are unsure of when the customer will return rented equipment. As such, we do not know how much the customer will owe us upon return of the equipment and cannot provide a maturity analysis of future lease payments. Our equipment is generally rented for short periods of time (significantly less than a year). Lessees do not provide residual value guarantees on rented equipment. We expect to derive significant future benefits from our equipment following the end of the rental term. Our rentals are generally short-term in nature, and our equipment is typically rented for the majority of the time that we own it. We additionally recognize revenue from sales of rental equipment when we dispose of the equipment. Re-rent revenue: Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. “Other” equipment rental revenue is primarily comprised of 1) Rental Protection Plan (or "RPP") revenue associated with the damage waiver customers can purchase when they rent our equipment to protect against potential loss or damage, 2) environmental charges associated with the rental of equipment, 3) charges for rented equipment that is damaged by our customers and 4) charges for setup and other services performed on rented equipment. |
Revenues from Contracts with Customers (Topic 606) | Revenues from contracts with customers (Topic 606) The accounting for the significant types of revenue that are accounted for under Topic 606 is discussed below. Delivery and pick-up: Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. Sales of rental equipment, new equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is probable. Service and other revenues primarily represent revenues earned from providing repair and maintenance services on our customers’ fleet (including parts sales). Service revenue is recognized as the services are performed. Delivery Expense Equipment rentals include our revenues from fees we charge for equipment delivery. Delivery costs are charged to operations as incurred, and are included in cost of revenues on our consolidated statements of income. Revenues from contracts with customers (Topic 606) The accounting for the types of revenue that are accounted for under Topic 606 is discussed below. Substantially all of our revenues under Topic 606 are recognized at a point-in-time rather than over time. Delivery and pick-up: Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. “Other” equipment rental revenue is primarily comprised of revenues associated with the consumption of fuel by our customers which are recognized when the equipment is returned by the customer (and consumption, if any, can be measured). Sales of rental equipment, new equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer and when collectibility is probable. Service and other revenues primarily represent revenues earned from providing repair and maintenance services on our customers’ fleet (including parts sales). Service revenue is recognized as the services are performed. Receivables and contract assets and liabilities As reflected above, most of our equipment rental revenue is accounted for under Topic 842 (such revenue represented 76 percent of our total revenues for the year ended December 31, 2023). The customers that are responsible for the remaining revenue that is accounted for under Topic 606 are generally the same customers that rent our equipment. We manage credit risk associated with our accounts receivables at the customer level. Because the same customers generate the revenues that are accounted for under both Topic 606 and Topic 842, the discussions below on credit risk and our allowance for credit losses address receivables arising from revenues from both Topic 606 and Topic 842. 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 2023, 2022, and 2021. Our customer with the largest receivable balance represented approximately one percent of total receivables at December 31, 2023 and 2022. We manage credit risk through credit approvals, credit limits and other monitoring procedures. Our allowance for credit losses reflects our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectibility. Our estimate could require change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowance. Trade receivables that have contractual maturities of one year or less are written-off when they are determined to be uncollectible based on the criteria necessary to qualify as a deduction for federal tax purposes. Write-offs of such receivables require management approval based on specified dollar thresholds. See the table below for a rollforward of our allowance for credit losses. The measurement of expected credit losses is based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectibility. Trade receivables are the only material financial asset we have that is subject to the requirement to measure expected credit losses as noted above, as this requirement does not apply to receivables arising from operating lease revenues. Substantially all of our non-lease trade receivables are due in one year or less. As discussed above, most of our equipment rental revenue is accounted for as lease revenue (such revenue represented 76 percent of our total revenues for the year ended December 31, 2023), and these revenues account for corresponding portions of the $2.230 billion of net accounts receivable and the associated allowance for credit losses of $169 as of December 31, 2023. As discussed above, most of our equipment rental revenue is accounted for under Topic 842. The customers that are responsible for the remaining revenue that is accounted for under Topic 606 are generally the same customers that rent our equipment. We manage credit risk associated with our accounts receivables at the customer level. The rollforward of our allowance for credit losses (in total, and associated with revenues arising from both Topic 606 and Topic 842) is shown below. Year ended December 31, 2023 2022 2021 Beginning balance $ 134 $ 112 $ 108 Charged to costs and expenses (1) 14 11 5 Charged to revenue (2) 60 49 31 Deductions and other (3) (39) (38) (32) Ending balance $ 169 $ 134 $ 112 _________________ (1) Reflects bad debt expenses recognized within selling, general and administrative expenses (associated with Topic 606 revenues). (2) Primarily reflects credit losses associated with lease revenues that were recognized as a reduction to equipment rentals revenue (primarily associated with Topic 842 revenues). (3) Primarily represents write-offs of accounts, net of immaterial recoveries and other activity. We do not have material contract assets, or impairment losses associated therewith, or material contract liabilities, associated with contracts with customers. Our contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. We did not recognize material revenue during the years ended December 31, 2023 and December 31, 2022 that was included in the contract liability balance as of the beginning of such periods. Performance obligations Most of our Topic 606 revenue is recognized at a point-in-time, rather than over time. Accordingly, in any particular period, we do not generally recognize a significant amount of revenue from performance obligations satisfied (or partially satisfied) in previous periods, and the amounts of such revenue recognized during the years ended December 31, 2023 and December 31, 2022 were not material. We also do not expect to recognize material revenue in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of December 31, 2023. Payment terms Our Topic 606 revenues do not include material amounts of variable consideration. Our payment terms vary by the type and location of our customer and the products or services offered. The time between invoicing and when payment is due is not significant. Our contracts do not generally include a significant financing component. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. See above for a discussion of how we manage credit risk. Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities. Contract costs We do not recognize any assets associated with the incremental costs of obtaining a contract with a customer (for example, a sales commission) that we expect to recover. Most of our revenue is recognized at a point-in-time or over a period of one year or less, and we use the practical expedient that allows us to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. Contract estimates and judgments Our revenues accounted for under Topic 606 generally do not require significant estimates or judgments, primarily for the following reasons: • The transaction price is generally fixed and stated in our contracts; • As noted above, our contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation; • Our revenues do not include material amounts of variable consideration, or result in significant obligations associated with returns, refunds or warranties; and • Most of our revenue is recognized as of a point-in-time and the timing of the satisfaction of the applicable performance obligations is readily determinable. As noted above, our Topic 606 revenue is generally recognized at the time of delivery to, or pick-up by, the customer. Our revenues accounted for under Topic 842 also generally do not require significant estimates or judgments. We monitor and review our estimated standalone selling prices on a regular basis. |
Advertising Expense | Advertising Expense We promote our business through local and national advertising in various media, including television, trade publications, branded sponsorships, yellow pages, the internet, radio and direct mail. Advertising costs are generally expensed as incurred. These costs may include the development costs for branded content and advertising campaigns. Advertising expense, net of the qualified advertising reimbursements discussed below, was not material for the years ended December 31, 2023, 2022 and 2021. |
Insurance | Insurance We are insured for general liability, workers’ compensation and automobile liability, subject to deductibles or self-insured retentions per occurrence. Losses within the deductible amounts are accrued based upon the aggregate liability for reported claims incurred, as well as an estimated liability for claims incurred but not yet reported. These liabilities are not discounted. We are also self-insured for group medical claims but purchase “stop loss” insurance as protection against any one significant loss. |
Income Taxes | Income Taxes We use the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities and are measured using the tax rates and laws that are expected to be in effect when the differences are expected to reverse. Recognition of deferred tax assets is limited to amounts considered by management to be more likely than not to be realized in future periods. The most significant positive evidence that we consider in the recognition of deferred tax assets is the expected reversal of cumulative deferred tax liabilities resulting from book versus tax depreciation of our rental equipment fleet that is well in excess of the deferred tax assets. We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return regarding uncertainties in income tax positions. The first step is recognition: we determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, we presume that the position will be examined by the appropriate taxing authority with full knowledge of all relevant information. The second step is measurement: a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset or an increase in a deferred tax liability. |
Use of Estimates | Use of Estimates |
Concentrations of Credit Risk | Concentrations of Credit Risk |
Stock-Based Compensation | Stock-Based Compensation |
New Accounting Pronouncements and Accounting Guidance Adopted in 2023 | New Accounting Pronouncements Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued ASU 2023-07, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require, among other things, disclosure of significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”) and a description of other segment items (the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss) by reportable segment, as well as disclosure of the title and position of the CODM, and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Annual disclosures are required for fiscal years beginning after December 15, 2023 and interim disclosures are required for periods within fiscal years beginning after December 15, 2024. Retrospective application is required, and early adoption is permitted. These requirements are not expected to have an impact on our financial statements, but will result in significantly expanded reportable segment disclosures. Improvements to Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, may be applied prospectively or retrospectively, and allows for early adoption. These requirements are not expected to have an impact on our financial statements, but will impact our income tax disclosures. Accounting Guidance Adopted in 2023 Reference Rate Reform . In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities’ financial reporting burdens as the market transitions from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This guidance generally allows for contract modifications solely related to the replacement of the reference rate to be accounted for as a continuation of the existing contract instead of as an extinguishment of the contract, without triggering certain accounting impacts that could be required associated with an extinguishment of the contract. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. In April 2023, our term loan facility was amended to transition to an interest rate based on the Secured Overnight Financing Rate ("SOFR"). Prior to the amendment, interest on the term loan facility reflected LIBOR plus a margin (or an alternative base rate plus a margin). We applied the above guidance when accounting for the term loan facility amendment, and adoption of this guidance did not have a material impact on our financial statements. As of December 31, 2023, we have no debt instruments that use LIBOR as a reference rate, and this guidance is not expected to have a material impact on our financial statements in the future. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of changes in accounting principles | In the following table, revenue is summarized by type and by the applicable accounting standard. Year Ended December 31, 2023 2022 2021 Topic 842 Topic 606 Total Topic 842 Topic 606 Total Topic 842 Topic 606 Total Revenues: Owned equipment rentals $ 9,948 $ — $ 9,948 $ 8,310 $ — $ 8,310 $ 6,840 $ — $ 6,840 Re-rent revenue 233 — 233 235 — 235 194 — 194 Ancillary and other rental revenues: Delivery and pick-up — 941 941 — 799 799 — 616 616 Other 756 186 942 596 176 772 426 131 557 Total ancillary and other rental revenues 756 1,127 1,883 596 975 1,571 426 747 1,173 Total equipment rentals 10,937 1,127 12,064 9,141 975 10,116 7,460 747 8,207 Sales of rental equipment — 1,574 1,574 — 965 965 — 968 968 Sales of new equipment — 218 218 — 154 154 — 203 203 Contractor supplies sales — 146 146 — 126 126 — 109 109 Service and other revenues — 330 330 — 281 281 — 229 229 Total revenues $ 10,937 $ 3,395 $ 14,332 $ 9,141 $ 2,501 $ 11,642 $ 7,460 $ 2,256 $ 9,716 |
Schedule II - Valuation and Qualifying Accounts | The rollforward of our allowance for credit losses (in total, and associated with revenues arising from both Topic 606 and Topic 842) is shown below. Year ended December 31, 2023 2022 2021 Beginning balance $ 134 $ 112 $ 108 Charged to costs and expenses (1) 14 11 5 Charged to revenue (2) 60 49 31 Deductions and other (3) (39) (38) (32) Ending balance $ 169 $ 134 $ 112 _________________ (1) Reflects bad debt expenses recognized within selling, general and administrative expenses (associated with Topic 606 revenues). (2) Primarily reflects credit losses associated with lease revenues that were recognized as a reduction to equipment rentals revenue (primarily associated with Topic 842 revenues). (3) Primarily represents write-offs of accounts, net of immaterial recoveries and other activity. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS UNITED RENTALS, INC. (In millions) Description Balance at Charged to Charged to Deductions and Other Balance Year Ended December 31, 2023: Allowance for credit losses $ 134 $ 14 (a) $ 60 (a) $ 39 (b) $ 169 Reserve for obsolescence and shrinkage 18 50 — 51 (c) 17 Self-insurance reserve 177 274 — 252 (d) 199 Year Ended December 31, 2022: Allowance for credit losses $ 112 $ 11 (a) $ 49 (a) $ 38 (b) $ 134 Reserve for obsolescence and shrinkage 11 42 — 35 (c) 18 Self-insurance reserve 151 236 — 210 (d) 177 Year Ended December 31, 2021: Allowance for credit losses $ 108 $ 5 (a) $ 31 (a) $ 32 (b) $ 112 Reserve for obsolescence and shrinkage 8 37 — 34 (c) 11 Self-insurance reserve 127 179 — 155 (d) 151 The above information reflects the continuing operations of the Company for the periods presented. Additionally, because the Company has retained certain self-insurance liabilities associated with the discontinued traffic control business, those amounts have been included as well. (a) Amounts charged to cost and expenses reflect bad debt expenses recognized within selling, general and administrative expenses. The amounts charged to revenue primarily reflect credit losses associated with lease revenues that were recognized as a reduction to equipment rentals revenue. (b) Primarily represents write-offs of accounts, net of recoveries and other activity. (c) Primarily represents write-offs. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of assets acquired and liabilities assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed. Inventory $ 20 Rental equipment 1,232 Property and equipment 186 Intangible assets (1) 428 Operating lease right-of-use assets 211 Other assets 10 Total identifiable assets acquired 2,087 Accounts payable, accrued expenses and other liabilities (24) Operating lease liabilities (199) Debt (finance leases) (38) Total liabilities assumed (261) Net identifiable assets acquired 1,826 Goodwill (2) 162 Net assets acquired $ 1,988 (1) 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 $ 330 9 Non-compete agreements 98 5 Total $ 428 (2) All of the goodwill was assigned to our general rentals segment. The level of goodwill that resulted from the acquisition is primarily reflective of Ahern Rentals' going-concern value, the value of Ahern Rentals' assembled workforce and new customer relationships expected to arise from the acquisition. All of the goodwill is expected to be deductible for income tax purposes (because the acquisition is a purchase of assets, the goodwill that is deductible for income tax purposes equals the total acquired goodwill). |
Finite-lived and indefinite-lived intangible assets acquired as part of business combination | 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 $ 330 9 Non-compete agreements 98 5 Total $ 428 |
Summary of pro forma information | The table below presents unaudited pro forma consolidated income statement information as if Ahern Rentals had been included in our consolidated results for the entire period reflected: Year Ended December 31, 2022 United Rentals historic revenues $ 11,642 Ahern Rentals historic revenues 827 Pro forma revenues 12,469 United Rentals historic pretax income $ 2,802 Ahern Rentals historic pretax income 2 Combined pretax income 2,804 Pro forma adjustments to combined pretax income: Impact of fair value mark-ups/useful life changes on depreciation (1) (94) Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales (2) (28) Intangible asset amortization (3) (78) Interest expense (4) (96) Elimination of historic interest (5) 53 Elimination of historic legal and financing costs (6) 11 Pro forma pretax income $ 2,572 ________________ (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 Ahern Rentals acquisition. (2) Cost of rental equipment sales was adjusted for the fair value mark-ups, and the changes in useful lives and salvage values, of rental equipment acquired in the Ahern Rentals acquisition. (3) Intangible asset amortization was adjusted to include amortization of the acquired intangible assets. (4) As discussed above, the acquisition and related fees and expenses were funded through the issuance of senior notes and drawings on our ABL facility. Interest expense was adjusted to reflect interest on the debt used to finance the acquisition. (5) Historic interest on debt that is not part of the combined entity was eliminated. (6) Reflects legal and financing costs incurred by Ahern Rentals that do not relate to the combined entity (specifically, legal costs related to a particular lawsuit and costs related to an attempted financing). |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022 and 2021: Year Ended December 31, 2023 2022 2021 Primarily rented by our general rentals segment: General construction and industrial equipment 42 % 42 % 42 % Aerial work platforms 25 % 24 % 26 % General tools and light equipment 8 % 8 % 8 % Primarily rented by our specialty segment: Power and HVAC equipment 10 % 10 % 9 % Trench safety equipment 5 % 6 % 6 % Fluid solutions equipment 7 % 7 % 7 % Mobile storage equipment and modular office space 3 % 3 % 2 % |
Financial information by segment | The following table sets forth financial information by segment as of, and for the years ended, December 31, 2023, 2022 and 2021: General Specialty Total 2023 Equipment rentals $ 8,803 $ 3,261 $ 12,064 Sales of rental equipment 1,411 163 1,574 Sales of new equipment 95 123 218 Contractor supplies sales 89 57 146 Service and other revenues 299 31 330 Total revenue 10,697 3,635 14,332 Depreciation and amortization expense 2,316 465 2,781 Equipment rentals gross profit 3,219 1,595 4,814 Capital expenditures 3,051 813 3,864 Total assets $ 20,411 $ 5,178 $ 25,589 2022 Equipment rentals $ 7,345 $ 2,771 $ 10,116 Sales of rental equipment 835 130 965 Sales of new equipment 73 81 154 Contractor supplies sales 81 45 126 Service and other revenues 250 31 281 Total revenue 8,584 3,058 11,642 Depreciation and amortization expense 1,765 452 2,217 Equipment rentals gross profit 2,905 1,340 4,245 Capital expenditures 2,868 822 3,690 Total assets $ 19,604 $ 4,579 $ 24,183 2021 Equipment rentals $ 6,074 $ 2,133 $ 8,207 Sales of rental equipment 862 106 968 Sales of new equipment 142 61 203 Contractor supplies sales 71 38 109 Service and other revenues 202 27 229 Total revenue 7,351 2,365 9,716 Depreciation and amortization expense 1,611 372 1,983 Equipment rentals gross profit 2,269 998 3,267 Capital expenditures 2,719 479 3,198 Total assets $ 16,087 $ 4,205 $ 20,292 |
Reconciliation of segment operating income to total Company operating income | The following is a reconciliation of equipment rentals gross profit to income before provision for income taxes: Year Ended December 31, 2023 2022 2021 Total equipment rentals gross profit $ 4,814 $ 4,245 $ 3,267 Gross profit from other lines of business 999 751 586 Selling, general and administrative expenses (1,527) (1,400) (1,199) Merger related costs (1) — — (3) Restructuring charge (2) (28) — (2) Non-rental depreciation and amortization (431) (364) (372) Interest expense, net (635) (445) (424) Other income (expense), net 19 15 (7) Income before provision for income taxes $ 3,211 $ 2,802 $ 1,846 ___________________ (1) Reflects transaction costs associated with the General Finance acquisition that was completed in May 2021. Merger related costs only include costs associated with major acquisitions that significantly impact our operations. (2) Primarily relates to branch closure charges and severance costs associated with our restructuring programs. As of December 31, 2023, there were no open restructuring programs. |
Geographic area information | The following table presents geographic area information for the years ended December 31, 2023, 2022 and 2021, except for balance sheet information, which is presented as of December 31, 2023 and 2022: Domestic Foreign Total 2023 Equipment rentals $ 11,045 $ 1,019 $ 12,064 Sales of rental equipment 1,427 147 1,574 Sales of new equipment 168 50 218 Contractor supplies sales 130 16 146 Service and other revenues 293 37 330 Total revenue 13,063 1,269 14,332 Rental equipment, net 12,679 1,322 14,001 Property and equipment, net 842 61 903 Goodwill and other intangible assets, net $ 6,031 $ 579 $ 6,610 2022 Equipment rentals $ 9,139 $ 977 $ 10,116 Sales of rental equipment 870 95 965 Sales of new equipment 122 32 154 Contractor supplies sales 109 17 126 Service and other revenues 248 33 281 Total revenue 10,488 1,154 11,642 Rental equipment, net 12,047 1,230 13,277 Property and equipment, net 789 50 839 Goodwill and other intangible assets, net $ 6,024 $ 454 $ 6,478 2021 Equipment rentals $ 7,430 $ 777 $ 8,207 Sales of rental equipment 873 95 968 Sales of new equipment 162 41 203 Contractor supplies sales 95 14 109 Service and other revenues 201 28 229 Total revenue $ 8,761 $ 955 $ 9,716 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | Prepaid expenses and other assets consist of the following: December 31, 2023 2022 Equipment (1) $ 17 $ 17 Insurance 29 31 Advertising reimbursements (2) 22 25 Income taxes (3) 5 235 Other (4) 62 73 Prepaid expenses and other assets $ 135 $ 381 _________________ (1) Reflects refundable deposits on expected purchases, primarily of rental equipment, pursuant to advance purchase agreements. Such deposits are presented as a component of cash flows from operations when paid. (2) Reflects reimbursements due for advertising that promotes a vendor’s products or services. See note 2 ("Advertising Expense") for further detail. (3) Primarily relates to tax depreciation benefits associated with the Ahern Rentals acquisition discussed in note 4 to the consolidated financial statements. The tax depreciation deductions generated by the Ahern Rentals acquisition resulted in an income tax receivable associated with U.S. federal and state tax payments made prior to the acquisition. The decrease reflected above from December 31, 2022 to December 31, 2023 reflects the use of a portion of the receivable to reduce cash paid for income taxes. |
Rental Equipment (Tables)
Rental Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of rental equipment | Rental equipment consists of the following: December 31, 2023 2022 Rental equipment $ 21,689 $ 20,074 Less accumulated depreciation (7,688) (6,797) Rental equipment, net $ 14,001 $ 13,277 Property and equipment consist of the following: December 31, 2023 2022 Land $ 157 $ 131 Buildings 296 230 Non-rental vehicles 268 317 Machinery and equipment 265 223 Furniture and fixtures 435 402 Leasehold improvements 567 516 1,988 1,819 Less accumulated depreciation and amortization (1,085) (980) Property and equipment, net $ 903 $ 839 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Rental equipment consists of the following: December 31, 2023 2022 Rental equipment $ 21,689 $ 20,074 Less accumulated depreciation (7,688) (6,797) Rental equipment, net $ 14,001 $ 13,277 Property and equipment consist of the following: December 31, 2023 2022 Land $ 157 $ 131 Buildings 296 230 Non-rental vehicles 268 317 Machinery and equipment 265 223 Furniture and fixtures 435 402 Leasehold improvements 567 516 1,988 1,819 Less accumulated depreciation and amortization (1,085) (980) Property and equipment, net $ 903 $ 839 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023: General rentals Specialty Total Balance at January 1, 2021 (1) $ 4,368 $ 800 $ 5,168 Goodwill related to acquisitions (2) 76 295 371 Foreign currency translation and other adjustments 1 (12) (11) Balance at December 31, 2021 (1) 4,445 1,083 5,528 Goodwill related to acquisitions (2) (3) 549 (20) 529 Foreign currency translation and other adjustments (14) (17) (31) Balance at December 31, 2022 (1) 4,980 1,046 6,026 Goodwill related to acquisitions (2) (3) (209) 111 (98) Foreign currency translation and other adjustments 4 8 12 Balance at December 31, 2023 (1) $ 4,775 $ 1,165 $ 5,940 _________________ (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. Decreases in goodwill related to acquisitions above primarily reflect such measurement period adjustments. (3) For additional detail on the December 2022 acquisition of Ahern Rentals, which was assigned to our general rentals segment and accounted for most of the goodwill related to acquisitions in 2022, see note 4 to our consolidated financial statements. The decrease in goodwill related to acquisitions for the general rentals segment in 2023 primarily reflects measurement period adjustments associated with the Ahern Rentals acquisition, partially offset by other acquisition activity. |
Components of intangible assets | Other intangible assets were comprised of the following at December 31, 2023 and 2022: December 31, 2023 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 4 years $ 176 $ 58 $ 118 Customer relationships 6 years $ 2,468 $ 1,919 $ 549 Trade names and associated trademarks 2 years $ 9 $ 6 $ 3 December 31, 2022 Weighted-Average Remaining Gross Accumulated Net Non-compete agreements 3 years $ 69 $ 22 $ 47 Customer relationships 5 years $ 2,349 $ 1,949 $ 400 Trade names and associated trademarks 3 years $ 14 $ 9 $ 5 December 31, 2023 Weighted-Average Remaining Net Carrying Non-compete agreements 4 years 77 Customer relationships 8 years 259 |
Estimated future amortization expense of intangible assets | As of December 31, 2023, estimated amortization expense for other intangible assets for each of the next five years and thereafter was as follows: 2024 $ 208 2025 167 2026 124 2027 81 2028 39 Thereafter 51 Total $ 670 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other liabilities | Accrued expenses and other liabilities consist of the following: December 31, 2023 2022 Self-insurance accruals $ 78 $ 68 Accrued compensation and benefit costs 149 207 Property and income taxes payable 139 113 Restructuring reserves (1) 21 6 Interest payable 152 152 Deferred revenue (2) 138 131 National accounts accrual 173 120 Operating lease liability 249 211 Other (3) 168 137 Accrued expenses and other liabilities $ 1,267 $ 1,145 _________________ (1) Primarily relates to branch closure charges and severance costs associated with our closed restructuring programs. As of December 31, 2023, there were no open restructuring programs. (2) Reflects amounts billed to customers in excess of recognizable revenue. See note 3 for additional detail. |
Summary of other long-term liabilities | Other long-term liabilities consist of the following: December 31, 2023 2022 Self-insurance accruals $ 121 $ 109 Income taxes payable 11 11 Accrued compensation and benefit costs 41 34 Other long-term liabilities $ 173 $ 154 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 have been calculated based upon available market information, and were as follows: December 31, 2023 December 31, 2022 Carrying Fair Carrying Fair Senior notes $ 7,720 $ 7,442 $ 7,712 $ 7,143 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 Repurchase facility expiring 2024 (1) $ 100 $ 100 Accounts receivable securitization facility expiring 2024 (1) 1,300 959 Term loan facility expiring 2025 (1) 945 953 $4.25 billion ABL facility expiring 2027 (1) 1,261 1,523 5 1 / 2 percent Senior Notes due 2027 498 498 3 7 / 8 percent Senior Secured Notes due 2027 745 744 4 7 / 8 percent Senior Notes due 2028 (2) 1,665 1,663 6 percent Senior Secured Notes due 2029 1,488 1,486 5 1 / 4 percent Senior Notes due 2030 745 744 4 percent Senior Notes due 2030 744 743 3 7 / 8 percent Senior Notes due 2031 1,091 1,090 3 3 / 4 percent Senior Notes due 2032 744 744 Finance leases 192 123 Total debt 11,518 11,370 Less short-term portion (3) (1,465) (161) Total long-term debt $ 10,053 $ 11,209 (1) The table below presents financial information associated with our variable rate indebtedness as of and for the year ended December 31, 2023. There is no borrowing capacity under the repurchase facility because it is an uncommitted facility. We have borrowed the full available amount under the term loan facility. The principal obligation under the term loan facility is required to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent per annum, with the balance due at the maturity of the facility. The average amount of debt outstanding under the term loan facility decreases slightly each quarter due to the requirement to repay a portion of the principal obligation. ABL facility Accounts receivable securitization facility Term loan facility Repurchase facility Borrowing capacity, net of letters of credit $ 2,967 $ — $ — Letters of credit 14 Interest rate at December 31, 2023 6.5 % 6.4 % 7.1 % 6.5 % Average month-end debt outstanding 1,694 1,171 953 50 Weighted-average interest rate on average debt outstanding 6.2 % 6.1 % 6.9 % 6.0 % Maximum month-end debt outstanding 1,848 1,300 958 100 (2) URNA separately issued 4 7 / 8 percent Senior Notes in August 2017 and in September 2017. Following the issuances, URNA 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. As of December 31, 2023, the total above is comprised of two separate 4 7 / 8 percent Senior Notes, one with a book value of $1.661 billion and one with a book value of $4. (3) As of December 31, 2023, short-term debt primarily reflected borrowings under the accounts receivable securitization and repurchase facilities and the short-term portion of our finance leases. As of December 31, 2022, short-term debt primarily reflected borrowings under the repurchase facility and the short-term portion of our finance leases. The accounts receivable securitization facility, which expires on June 24, 2024 and may be extended on a 364-day basis by mutual agreement with the purchasers under the facility, was not a short-term debt instrument as of December 31, 2022. The weighted average interest rates on our short-term debt, excluding finance leases, were 6.4 percent and 5.4 percent as of December 31, 2023 and 2022, respectively. See note 13 to the consolidated financial statements for further discussion on our finance leases. |
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, 2023 are as follows: 2024 $ 1,465 2025 985 2026 34 2027 2,539 2028 1,677 Thereafter 4,882 Total $ 11,582 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Assets and liabilities, lessee | The tables below present financial information associated with our leases as of December 31, 2023 and 2022, and for the years ended December 31, 2023, 2022 and 2021. Classification December 31, 2023 December 31, 2022 Assets Operating lease assets Operating lease right-of-use assets (1) $ 1,099 $ 819 Finance lease assets Rental equipment 395 321 Less accumulated depreciation (126) (104) Rental equipment, net 269 217 Property and equipment, net: Non-rental vehicles 8 8 Buildings 66 25 Less accumulated depreciation and amortization (27) (20) Property and equipment, net 47 13 Total leased assets 1,415 1,049 Liabilities Current Operating Accrued expenses and other liabilities 249 211 Finance Short-term debt and current maturities of long-term debt 55 51 Long-term Operating Operating lease liabilities (1) 895 642 Finance Long-term debt 137 72 Total lease liabilities $ 1,336 $ 976 _________________ |
Lease, cost | Lease cost Classification Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Operating lease cost (1) Cost of equipment rentals, excluding depreciation (1) $ 582 $ 494 $ 432 Selling, general and administrative expenses 12 11 11 Restructuring charge (2) 27 — 1 Finance lease cost Amortization of leased assets Depreciation of rental equipment 36 31 36 Non-rental depreciation and amortization 2 2 2 Interest on lease liabilities Interest expense, net 8 5 4 Sublease income (3) (233) (235) (194) Net lease cost $ 434 $ 308 $ 292 _________________ (1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the years ended December 31, 2023, 2022 and 2021 includes $209, $195 and $163, respectively, of short-term lease costs associated with equipment that we rent from vendors and then rent to our customers, as discussed further above. Apart from these costs, short-term lease costs are immaterial. (2) The increase in 2023 reflects the impact of a restructuring program initiated following the closing of the Ahern Rentals acquisition. (3) Primarily reflects re-rent revenue as discussed further above. Lease term and discount rate December 31, 2023 December 31, 2022 Weighted-average remaining lease term (years) Operating leases 6.2 4.8 Finance leases 6.5 2.8 Weighted-average discount rate Operating leases 4.5 % 3.7 % Finance leases 4.8 % 3.5 % Other information Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 304 $ 244 $ 221 Operating cash flows from finance leases 8 5 4 Financing cash flows from finance leases 64 57 69 Leased assets obtained in exchange for new operating lease liabilities (1) 538 237 299 Leased assets obtained in exchange for new finance lease liabilities (1) $ 132 $ 47 $ 66 _________________ |
Finance lease, liability, maturity | Maturity of lease liabilities (as of December 31, 2023) Operating leases (1) Finance leases (2) 2024 $ 295 $ 61 2025 259 54 2026 219 40 2027 168 24 2028 115 6 Thereafter 275 44 Total 1,331 229 Less amount representing interest (187) (37) Present value of lease liabilities $ 1,144 $ 192 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of December 31, 2023. The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. (2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. |
Lessee, operating lease, liability, maturity | Maturity of lease liabilities (as of December 31, 2023) Operating leases (1) Finance leases (2) 2024 $ 295 $ 61 2025 259 54 2026 219 40 2027 168 24 2028 115 6 Thereafter 275 44 Total 1,331 229 Less amount representing interest (187) (37) Present value of lease liabilities $ 1,144 $ 192 _________________ (1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of December 31, 2023. The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. (2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of the components of the provision (benefit) for income taxes | The components of the provision (benefit) for income taxes for each of the three years in the period ended December 31, 2023 are as follows: Year ended December 31, 2023 2022 2021 Current Federal $ 561 $ (34) $ 78 Foreign 66 100 26 State and local 125 94 88 752 160 192 Deferred Federal 5 525 260 Foreign 13 (16) 14 State and local 17 28 (6) 35 537 268 Total $ 787 $ 697 $ 460 |
Schedule of effective income tax rate reconciliation | A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rate of 21 percent to the income before provision (benefit) for income taxes for each of the three years in the period ended December 31, 2023 is as follows: Year ended December 31, 2023 2022 2021 Computed tax at statutory tax rate $ 674 $ 588 $ 388 State income taxes, net of federal tax benefit 116 102 64 Other permanent items (3) 18 1 Change in federal valuation allowance (15) 15 — Foreign restructuring (1) — (37) — Foreign tax rate differential 15 11 7 Total $ 787 $ 697 $ 460 _________________ (1) Reflects the impact of aligning the legal entity structure in Australia and New Zealand with our other foreign operations, which resulted in a tax depreciation benefit. |
Schedule of deferred tax assets and liabilities | The components of deferred income tax assets (liabilities) are as follows: December 31, 2023 December 31, 2022 Reserves and allowances $ 193 $ 186 Debt cancellation and other 17 18 Net operating loss and credit carryforwards 97 171 Interest carryforward (1) — 84 Operating lease assets 287 216 Total deferred tax assets 594 675 Less: valuation allowance (2) (4) (19) Total net deferred tax assets 590 656 Property and equipment, including rental equipment (2,921) (2,986) Operating lease liabilities (285) (216) Intangibles (85) (125) Total deferred tax liability (3,291) (3,327) Total net deferred tax liability $ (2,701) $ (2,671) _________________ (1) Relates to the limitation of deductible interest, and is primarily due to tax depreciation benefits associated with the Ahern Rentals acquisition (see note 6 to the consolidated financial statements for further discussion of the tax depreciation benefits). (2) Relates to federal foreign tax credits, state net operating loss carryforwards and state tax credits that may not be realized. |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes the activity related to unrecognized tax benefits, some of which would impact our effective tax rate if recognized: 2023 2022 2021 Balance at January 1 $ 16 $ 13 $ 12 Additions for tax positions related to the current year 3 1 2 Additions for tax positions of prior years 8 7 — Settlements (1) (5) (1) Balance at December 31 $ 26 $ 16 $ 13 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock option activity | A summary of the transactions within the Company’s stock option plans follows (shares in thousands): Shares Weighted-Average Outstanding at December 31, 2022 5 80.45 Granted — — Exercised (2) 80.94 Canceled — — Outstanding at December 31, 2023 3 80.17 Exercisable at December 31, 2023 3 $ 80.17 The following table presents information associated with stock options as of December 31, 2023 and 2022, and for the years ended December 31, 2023, 2022 and 2021. No stock options were granted during any of the years presented below. 2023 2022 2021 Intrinsic value of options outstanding as of December 31 $ 2 $ 1 Intrinsic value of options exercisable as of December 31 2 1 Intrinsic value of options exercised 1 — 1 |
Summary of restricted stock units activity | A summary of RSUs granted follows (RSUs in thousands): Year Ended December 31, 2023 2022 2021 RSUs granted 179 553 348 Weighted-average grant date price per unit $ 461.37 $ 309.39 $ 297.02 A summary of RSU activity for the year ended December 31, 2023 follows (RSUs in thousands): Stock Units Weighted-Average Nonvested as of December 31, 2022 464 $ 215.23 Granted 179 461.37 Vested (319) 297.27 Forfeited (36) 353.26 Nonvested as of December 31, 2023 288 $ 360.41 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | First Second Third Fourth Full For the year ended December 31, 2023 (1) (2): Total revenues (1) $ 3,285 $ 3,554 $ 3,765 $ 3,728 $ 14,332 Gross profit 1,241 1,425 1,585 1,562 5,813 Operating income 740 925 1,099 1,063 3,827 Net income (2) 451 591 703 679 2,424 Earnings per share—basic 6.50 8.60 10.30 10.04 35.40 Earnings per share—diluted (3) 6.47 8.58 10.29 10.01 35.28 For the year ended December 31, 2022 (1) (2): Total revenues (1) $ 2,524 $ 2,771 $ 3,051 $ 3,296 $ 11,642 Gross profit 992 1,150 1,366 1,488 4,996 Operating income 572 715 921 1,024 3,232 Net income (2) 367 493 606 639 2,105 Earnings per share—basic 5.07 6.91 8.69 9.20 29.77 Earnings per share—diluted (3) 5.05 6.90 8.66 9.15 29.65 (1) Beginning in 2021 and continuing through 2023, we have experienced broad-based strength of demand across our end-markets. The revenue increases above reflect this strong demand, as well as the impact of the December 2022 Ahern Rentals acquisition that is discussed in note 4 to the consolidated financial statements. (2) There were no unusual or infrequently occurring items recognized in the fourth quarter of 2023 that had a material impact on our financial statements. In the fourth quarter of 2022, we issued $1.5 billion principal amount of 6 percent Senior Secured Notes due 2029. The issued debt, together with drawings on our ABL facility, was used to fund the December 2022 Ahern Rentals acquisition that is discussed in note 4 to the consolidated financial statements. (3) Diluted earnings per share includes the after-tax impacts of the following: First Second Third Fourth Full For the year ended December 31, 2023: Merger related intangible asset amortization (4) $ (0.70) $ (0.55) $ (0.57) $ (0.52) $ (2.33) Impact on depreciation related to acquired fleet and property and equipment (5) (0.32) (0.30) (0.59) (0.44) (1.65) Impact of the fair value mark-up of acquired fleet (6) (0.44) (0.25) (0.23) (0.25) (1.17) Restructuring charge (7) (0.02) (0.20) (0.05) (0.04) (0.31) For the year ended December 31, 2022: Merger related intangible asset amortization (4) $ (0.52) $ (0.45) $ (0.44) $ (0.39) $ (1.79) Impact on depreciation related to acquired fleet and property and equipment (5) (0.10) (0.26) (0.12) (0.08) (0.56) Impact of the fair value mark-up of acquired fleet (6) (0.06) (0.05) (0.05) (0.12) (0.29) Restructuring charge (7) — — 0.01 — — Asset impairment charge (8) — (0.02) (0.01) — (0.03) Loss on repurchase/redemption of debt securities (9) — (0.18) — — (0.18) (4) This reflects the amortization of the intangible assets acquired in the major acquisitions that significantly impact our operations (the "major acquisitions," each of which had annual revenues of over $200 prior to acquisition). The increases in 2023 primarily reflect the impact of the Ahern Rentals acquisition. (5) This reflects the impact of extending the useful lives of equipment acquired in certain major acquisitions, net of the impact of additional depreciation associated with the fair value mark-up of such equipment. The increases in 2023 primarily reflect the impact of the Ahern Rentals acquisition. (6) This reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment acquired in certain major acquisitions that was subsequently sold. The increases in 2023 primarily reflect the impact of the Ahern Rentals acquisition. (7) This primarily reflects severance costs and branch closure charges associated with our restructuring programs. The increases in 2023 reflect charges associated with a restructuring program initiated following the closing of the Ahern Rentals acquisition. As of December 31, 2023, there were no open restructuring programs. (8) This reflects write-offs of leasehold improvements and other fixed assets. (9) Reflects the difference between the net carrying amount and the total purchase price of the redeemed notes. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 Numerator: Net income available to common stockholders $ 2,424 $ 2,105 $ 1,386 Denominator: Denominator for basic earnings per share—weighted-average common shares 68,470 70,703 72,432 Effect of dilutive securities: Employee stock options 4 4 4 Restricted stock units 236 266 381 Denominator for diluted earnings per share—adjusted weighted-average common shares 68,710 70,973 72,817 Basic earnings per share $ 35.40 $ 29.77 $ 19.14 Diluted earnings per share $ 35.28 $ 29.65 $ 19.04 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 01, 2023 | Oct. 01, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Percentage of fair value in excess of carrying amount | 37% | ||||
Advertising reimbursements | $ 44,000,000 | $ 53,000,000 | $ 49,000,000 | ||
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 Mobile Storage and Mobile Storage International | |||||
Property, Plant and Equipment [Line Items] | |||||
Percentage of fair value in excess of carrying amount | 54% | ||||
Mobile Storage | |||||
Property, Plant and Equipment [Line Items] | |||||
Percentage of fair value in excess of carrying amount | 8% | 8% | |||
Sales of rental equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, weighted average salvage value, percentage of cost | 12% | ||||
Capital expenditures incurred but not yet paid | $ 74,000,000 | $ 0 | $ 0 | ||
Minimum | Customer relationships | |||||
Property, Plant and Equipment [Line Items] | |||||
Finite lived intangible assets life | 8 years | ||||
Minimum | Sales of rental equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment useful life | 2 years | ||||
Property, plant and equipment salvage value | 0% | ||||
Minimum | Property and Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment useful life | 3 years | ||||
Maximum | Customer relationships | |||||
Property, Plant and Equipment [Line Items] | |||||
Finite lived intangible assets life | 15 years | ||||
Maximum | Sales of rental equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment useful life | 20 years | ||||
Property, plant and equipment salvage value | 50% | ||||
Maximum | Property and Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment useful life | 40 years |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||||||||||
Re-rent revenue, Topic 842 | $ 233 | $ 235 | $ 194 | ||||||||
Revenues, Topic 842 | 10,937 | 9,141 | 7,460 | ||||||||
Revenues, Topic 606 | 3,395 | 2,501 | 2,256 | ||||||||
Revenues, Total | $ 3,728 | $ 3,765 | $ 3,554 | $ 3,285 | $ 3,296 | $ 3,051 | $ 2,771 | $ 2,524 | $ 14,332 | $ 11,642 | $ 9,716 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues, Total | Revenues, Total | Revenues, Total | ||||||||
Total equipment rentals | |||||||||||
Revenues: | |||||||||||
Revenues, Topic 842 | $ 10,937 | $ 9,141 | $ 7,460 | ||||||||
Revenues, Topic 606 | 1,127 | 975 | 747 | ||||||||
Revenues, Total | 12,064 | 10,116 | 8,207 | ||||||||
Owned equipment rentals | |||||||||||
Revenues: | |||||||||||
Owned equipment rentals, Topic 842 | 9,948 | 8,310 | 6,840 | ||||||||
Revenues, Total | 9,948 | 8,310 | 6,840 | ||||||||
Re-rent revenue | |||||||||||
Revenues: | |||||||||||
Re-rent revenue, Topic 842 | 233 | 235 | 194 | ||||||||
Revenues, Total | 233 | 235 | 194 | ||||||||
Delivery and pick-up | |||||||||||
Revenues: | |||||||||||
Revenues, Topic 606 | 941 | 799 | 616 | ||||||||
Revenues, Total | 941 | 799 | 616 | ||||||||
Other | |||||||||||
Revenues: | |||||||||||
Other, Topic 842 | 756 | 596 | 426 | ||||||||
Revenues, Topic 606 | 186 | 176 | 131 | ||||||||
Revenues, Total | 942 | 772 | 557 | ||||||||
Total ancillary and other rental revenues | |||||||||||
Revenues: | |||||||||||
Revenues, Topic 842 | 756 | 596 | 426 | ||||||||
Revenues, Topic 606 | 1,127 | 975 | 747 | ||||||||
Revenues, Total | 1,883 | 1,571 | 1,173 | ||||||||
Sales of rental equipment | |||||||||||
Revenues: | |||||||||||
Revenues, Topic 606 | 1,574 | 965 | 968 | ||||||||
Revenues, Total | 1,574 | 965 | 968 | ||||||||
Sales of new equipment | |||||||||||
Revenues: | |||||||||||
Revenues, Topic 606 | 218 | 154 | 203 | ||||||||
Revenues, Total | 218 | 154 | 203 | ||||||||
Contractor supplies sales | |||||||||||
Revenues: | |||||||||||
Revenues, Topic 606 | 146 | 126 | 109 | ||||||||
Revenues, Total | 146 | 126 | 109 | ||||||||
Service and other revenues | |||||||||||
Revenues: | |||||||||||
Revenues, Topic 606 | 330 | 281 | 229 | ||||||||
Revenues, Total | $ 330 | $ 281 | $ 229 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue | $ 138 | $ 131 | |
Accounts receivable, net | 2,230 | 2,004 | |
Accounts receivable, allowance for doubtful accounts | 169 | ||
Contract with customer, asset, after allowance for credit loss | 0 | ||
Contract with customer, liability, revenue recognized | 0 | 0 | |
Contract with customer, performance obligation satisfied in previous period | $ 0 | $ 0 | |
Customer concentration risk | Revenues | Largest customer | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 1% | 1% | 1% |
Customer concentration risk | Accounts receivable | Largest customer | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 1% | 1% | |
Owned equipment rentals | Product concentration risk | Revenues | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 69% | ||
Total equipment rentals | Product concentration risk | Revenues | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 76% | ||
General rentals | Product concentration risk | Revenues | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 75% | ||
UNITED STATES | Geographic Concentration Risk | Revenues | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Concentration risk, percentage | 91% |
Revenue Recognition (Allowance
Revenue Recognition (Allowance for Doubtful Accounts Rollforward) (Details) - Allowance for credit losses - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 134 | $ 112 | $ 108 |
Charged to Costs and Expenses | 14 | 11 | 5 |
Charged to Revenue | 60 | 49 | 31 |
Deductions and other | (39) | (38) | (32) |
Ending balance | $ 169 | $ 134 | $ 112 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Millions | 12 Months Ended | ||||
Dec. 07, 2022 USD ($) | Dec. 31, 2023 USD ($) state | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||
Amortization expense | $ 271 | $ 219 | $ 233 | ||
6 percent Senior Secured Notes due 2029 | Senior notes | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, face amount | $ 1,500 | $ 1,500 | |||
Stated interest rate | 600% | 6% | |||
Ahern Rentals | |||||
Business Acquisition [Line Items] | |||||
Number of states in which entity operates | state | 30 | ||||
Consideration transferred | $ 1,988 | ||||
Amortization expense | $ 7 |
Acquisitions (Assets Acquired a
Acquisitions (Assets Acquired and Liabilities Assumed - Ahern Rentals) (Details) - USD ($) $ in Millions | Dec. 07, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 5,940 | $ 6,026 | $ 5,528 | $ 5,168 | |
Ahern Rentals | |||||
Business Acquisition [Line Items] | |||||
Inventory | $ 20 | ||||
Rental equipment | 1,232 | ||||
Property and equipment | 186 | ||||
Intangible assets | 428 | ||||
Operating lease right-of-use assets | 211 | ||||
Other assets | 10 | ||||
Total identifiable assets acquired | 2,087 | ||||
Accounts payable, accrued expenses and other liabilities | (24) | ||||
Operating lease liabilities | (199) | ||||
Debt (finance leases) | (38) | ||||
Total liabilities assumed | (261) | ||||
Net identifiable assets acquired | 1,826 | ||||
Goodwill | 162 | ||||
Net assets acquired | 1,988 | ||||
Ahern Rentals | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 330 | ||||
Life (years) | 9 years | ||||
Ahern Rentals | Non-compete agreements | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 98 | ||||
Life (years) | 5 years |
Acquisitions (Pro Forma Informa
Acquisitions (Pro Forma Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Revenues | $ 3,728 | $ 3,765 | $ 3,554 | $ 3,285 | $ 3,296 | $ 3,051 | $ 2,771 | $ 2,524 | $ 14,332 | $ 11,642 | $ 9,716 |
Pro forma revenues | 12,469 | ||||||||||
Pretax income | $ 3,211 | 2,802 | $ 1,846 | ||||||||
Pro forma pretax income | 2,572 | ||||||||||
Impact of fair value mark-ups/useful life changes on depreciation | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Pro forma pretax income | (94) | ||||||||||
Impact of the fair value mark-up of acquired fleet on cost of rental equipment sales | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Pro forma pretax income | (28) | ||||||||||
Intangible asset amortization | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Pro forma pretax income | (78) | ||||||||||
Interest expense | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Pro forma pretax income | (96) | ||||||||||
Elimination of historic interest | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Pro forma pretax income | 53 | ||||||||||
Elimination of historic legal and financing costs | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Pro forma pretax income | 11 | ||||||||||
United Rentals and Ahern Rentals | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Pretax income | 2,804 | ||||||||||
United Rentals | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Revenues | 11,642 | ||||||||||
Pretax income | 2,802 | ||||||||||
Ahern Rentals | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Revenues | 827 | ||||||||||
Pretax income | $ 2 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | Dec. 31, 2023 region |
General rentals | |
Segment Reporting Information [Line Items] | |
Number of geographic regions entity operates in | 4 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
General construction and industrial equipment | General rentals | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 42% | 42% | 42% |
Aerial work platforms | General rentals | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 25% | 24% | 26% |
General tools and light equipment | General rentals | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 8% | 8% | 8% |
Power and HVAC equipment | Specialty | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 10% | 10% | 9% |
Trench safety equipment | Specialty | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 5% | 6% | 6% |
Fluid solutions equipment | Specialty | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 7% | 7% | 7% |
Mobile storage equipment and modular office space | Specialty | |||
Segment Reporting Information [Line Items] | |||
Percentage of equipment rental revenue | 3% | 3% | 2% |
Segment Information (Financial
Segment Information (Financial Information by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 3,728 | $ 3,765 | $ 3,554 | $ 3,285 | $ 3,296 | $ 3,051 | $ 2,771 | $ 2,524 | $ 14,332 | $ 11,642 | $ 9,716 |
Revenue from contract with customer, excluding assessed tax | 3,395 | 2,501 | 2,256 | ||||||||
Depreciation and amortization | 2,781 | 2,217 | 1,983 | ||||||||
Equipment rentals gross profit | 1,562 | $ 1,585 | $ 1,425 | $ 1,241 | 1,488 | $ 1,366 | $ 1,150 | $ 992 | 5,813 | 4,996 | 3,853 |
Capital expenditures | 3,864 | 3,690 | 3,198 | ||||||||
Total assets | 25,589 | 24,183 | 25,589 | 24,183 | 20,292 | ||||||
Equipment rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 12,064 | 10,116 | 8,207 | ||||||||
Revenue from contract with customer, excluding assessed tax | 1,127 | 975 | 747 | ||||||||
Sales of rental equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,574 | 965 | 968 | ||||||||
Revenue from contract with customer, excluding assessed tax | 1,574 | 965 | 968 | ||||||||
Sales of new equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 218 | 154 | 203 | ||||||||
Revenue from contract with customer, excluding assessed tax | 218 | 154 | 203 | ||||||||
Contractor supplies sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 146 | 126 | 109 | ||||||||
Revenue from contract with customer, excluding assessed tax | 146 | 126 | 109 | ||||||||
Service and other revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 330 | 281 | 229 | ||||||||
Revenue from contract with customer, excluding assessed tax | 330 | 281 | 229 | ||||||||
Equipment rentals gross profit | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equipment rentals gross profit | 4,814 | 4,245 | 3,267 | ||||||||
General rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 10,697 | 8,584 | 7,351 | ||||||||
Depreciation and amortization | 2,316 | 1,765 | 1,611 | ||||||||
Capital expenditures | 3,051 | 2,868 | 2,719 | ||||||||
Total assets | 20,411 | 19,604 | 20,411 | 19,604 | 16,087 | ||||||
General rentals | Equipment rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 8,803 | 7,345 | 6,074 | ||||||||
General rentals | Sales of rental equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 1,411 | 835 | 862 | ||||||||
General rentals | Sales of new equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 95 | 73 | 142 | ||||||||
General rentals | Contractor supplies sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 89 | 81 | 71 | ||||||||
General rentals | Service and other revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 299 | 250 | 202 | ||||||||
General rentals | Equipment rentals gross profit | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equipment rentals gross profit | 3,219 | 2,905 | 2,269 | ||||||||
Specialty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,635 | 3,058 | 2,365 | ||||||||
Depreciation and amortization | 465 | 452 | 372 | ||||||||
Capital expenditures | 813 | 822 | 479 | ||||||||
Total assets | $ 5,178 | $ 4,579 | 5,178 | 4,579 | 4,205 | ||||||
Specialty | Equipment rentals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,261 | 2,771 | 2,133 | ||||||||
Specialty | Sales of rental equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 163 | 130 | 106 | ||||||||
Specialty | Sales of new equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 123 | 81 | 61 | ||||||||
Specialty | Contractor supplies sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 57 | 45 | 38 | ||||||||
Specialty | Service and other revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 31 | 31 | 27 | ||||||||
Specialty | Equipment rentals gross profit | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equipment rentals gross profit | $ 1,595 | $ 1,340 | $ 998 |
Segment Information (Reconcilia
Segment Information (Reconciliation to Consolidated Totals) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross profit | $ 1,562 | $ 1,585 | $ 1,425 | $ 1,241 | $ 1,488 | $ 1,366 | $ 1,150 | $ 992 | $ 5,813 | $ 4,996 | $ 3,853 |
Selling, general and administrative expenses | (1,527) | (1,400) | (1,199) | ||||||||
Merger related costs (1) | 0 | 0 | (3) | ||||||||
Restructuring charge (2) | (28) | 0 | (2) | ||||||||
Non-rental depreciation and amortization | (431) | (364) | (372) | ||||||||
Interest expense, net | (635) | (445) | (424) | ||||||||
Other income (expense), net | 19 | 15 | (7) | ||||||||
Income before provision for income taxes | 3,211 | 2,802 | 1,846 | ||||||||
Equipment rentals | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross profit | 4,814 | 4,245 | 3,267 | ||||||||
Other products and services | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Gross profit | $ 999 | $ 751 | $ 586 |
Segment Information (Geographic
Segment Information (Geographic Area Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | $ 3,395 | $ 2,501 | $ 2,256 | ||||||||
Revenues | $ 3,728 | $ 3,765 | $ 3,554 | $ 3,285 | $ 3,296 | $ 3,051 | $ 2,771 | $ 2,524 | 14,332 | 11,642 | 9,716 |
Goodwill and other intangible assets, net | 6,610 | 6,478 | 6,610 | 6,478 | |||||||
Property and equipment, net | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | 903 | 839 | 903 | 839 | |||||||
Total equipment rentals | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | 14,001 | 13,277 | 14,001 | 13,277 | |||||||
Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 13,063 | 10,488 | 8,761 | ||||||||
Goodwill and other intangible assets, net | 6,031 | 6,024 | 6,031 | 6,024 | |||||||
Domestic | Property and equipment, net | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | 842 | 789 | 842 | 789 | |||||||
Domestic | Total equipment rentals | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | 12,679 | 12,047 | 12,679 | 12,047 | |||||||
Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,269 | 1,154 | 955 | ||||||||
Goodwill and other intangible assets, net | 579 | 454 | 579 | 454 | |||||||
Foreign | Property and equipment, net | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | 61 | 50 | 61 | 50 | |||||||
Foreign | Total equipment rentals | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | $ 1,322 | $ 1,230 | 1,322 | 1,230 | |||||||
Total equipment rentals | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 1,127 | 975 | 747 | ||||||||
Revenues | 12,064 | 10,116 | 8,207 | ||||||||
Total equipment rentals | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 11,045 | 9,139 | 7,430 | ||||||||
Total equipment rentals | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,019 | 977 | 777 | ||||||||
Sales of rental equipment | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 1,574 | 965 | 968 | ||||||||
Revenues | 1,574 | 965 | 968 | ||||||||
Sales of rental equipment | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 1,427 | 870 | 873 | ||||||||
Sales of rental equipment | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 147 | 95 | 95 | ||||||||
Sales of new equipment | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 218 | 154 | 203 | ||||||||
Revenues | 218 | 154 | 203 | ||||||||
Sales of new equipment | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 168 | 122 | 162 | ||||||||
Sales of new equipment | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 50 | 32 | 41 | ||||||||
Contractor supplies sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 146 | 126 | 109 | ||||||||
Revenues | 146 | 126 | 109 | ||||||||
Contractor supplies sales | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 130 | 109 | 95 | ||||||||
Contractor supplies sales | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 16 | 17 | 14 | ||||||||
Service and other revenues | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 330 | 281 | 229 | ||||||||
Revenues | 330 | 281 | 229 | ||||||||
Service and other revenues | Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 293 | 248 | 201 | ||||||||
Service and other revenues | Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | $ 37 | $ 33 | $ 28 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Equipment | $ 17 | $ 17 |
Insurance | 29 | 31 |
Advertising reimbursements | 22 | 25 |
Income taxes (3) | 5 | 235 |
Other | 62 | 73 |
Prepaid expenses and other assets | $ 135 | $ 381 |
Rental Equipment (Details)
Rental Equipment (Details) - Sales of rental equipment - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Rental equipment | $ 21,689 | $ 20,074 |
Less accumulated depreciation | (7,688) | (6,797) |
Property and equipment, net | $ 14,001 | $ 13,277 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property and equipment, net | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | $ 1,988 | $ 1,819 |
Less accumulated depreciation and amortization | (1,085) | (980) |
Property and equipment, net | 903 | 839 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | 157 | 131 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | 296 | 230 |
Non-rental vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | 268 | 317 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | 265 | 223 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | 435 | 402 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Equipment | $ 567 | $ 516 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Balance at beginning of period | $ 6,026 | $ 5,528 | $ 5,168 |
Goodwill related to acquisitions | (98) | 529 | 371 |
Foreign currency translation and other adjustments | 12 | (31) | (11) |
Balance at end of period | 5,940 | 6,026 | 5,528 |
Goodwill accumulated impairment loss | 1,557 | 1,557 | 1,557 |
General rentals | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | 4,980 | 4,445 | 4,368 |
Goodwill related to acquisitions | (209) | 549 | 76 |
Foreign currency translation and other adjustments | 4 | (14) | 1 |
Balance at end of period | 4,775 | 4,980 | 4,445 |
Specialty | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | 1,046 | 1,083 | 800 |
Goodwill related to acquisitions | 111 | (20) | 295 |
Foreign currency translation and other adjustments | 8 | (17) | (12) |
Balance at end of period | $ 1,165 | $ 1,046 | $ 1,083 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 670 | $ 452 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Amortization Period | 4 years | 3 years |
Gross Carrying Amount | $ 176 | $ 69 |
Accumulated Amortization | 58 | 22 |
Total | $ 118 | $ 47 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Amortization Period | 6 years | 5 years |
Gross Carrying Amount | $ 2,468 | $ 2,349 |
Accumulated Amortization | 1,919 | 1,949 |
Total | $ 549 | $ 400 |
Trade names and associated trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Amortization Period | 2 years | 3 years |
Gross Carrying Amount | $ 9 | $ 14 |
Accumulated Amortization | 6 | 9 |
Total | $ 3 | $ 5 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Other Intangible Assets Associated with Acquisition) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 670 | $ 452 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Amortization Period | 4 years | 3 years |
Net Carrying Amount | $ 118 | $ 47 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Amortization Period | 6 years | 5 years |
Net Carrying Amount | $ 549 | $ 400 |
Ahern Rentals | Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Amortization Period | 4 years | |
Net Carrying Amount | $ 77 | |
Ahern Rentals | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Amortization Period | 8 years | |
Net Carrying Amount | $ 259 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 271 | $ 219 | $ 233 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets (Maturity Schedule) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 208 | |
2025 | 167 | |
2026 | 124 | |
2027 | 81 | |
2028 | 39 | |
Thereafter | 51 | |
Total | $ 670 | $ 452 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued expenses and other liabilities | ||
Self-insurance accruals | $ 78 | $ 68 |
Accrued compensation and benefit costs | 149 | 207 |
Property and income taxes payable | 139 | 113 |
Restructuring reserves | 21 | 6 |
Interest payable | 152 | 152 |
Deferred revenue | 138 | 131 |
National accounts accrual | 173 | 120 |
Operating lease liability | 249 | 211 |
Other | 168 | 137 |
Accrued expenses and other liabilities | 1,267 | 1,145 |
Other long-term liabilities | ||
Self-insurance accruals | 121 | 109 |
Income taxes payable | 11 | 11 |
Accrued compensation and benefit costs | 41 | 34 |
Other long-term liabilities | $ 173 | $ 154 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments) (Details) - Senior notes - Level 1 - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument | $ 7,720 | $ 7,712 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument | $ 7,442 | $ 7,143 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2022 | Oct. 31, 2018 | Jun. 30, 2008 | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 11,582,000,000 | ||||
Finance leases | 192,000,000 | $ 123,000,000 | |||
Total debt | 11,518,000,000 | 11,370,000,000 | |||
Less short-term portion | (1,465,000,000) | (161,000,000) | |||
Total long-term debt | $ 10,053,000,000 | $ 11,209,000,000 | |||
Weighted-average interest rate on average debt outstanding | 6.40% | 5.40% | |||
Line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||
Repurchase facility expiring 2023 | Repurchase facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 100,000,000 | $ 100,000,000 | |||
Accounts receivable securitization facility expiring 2024 | Line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 1,300,000,000 | ||||
Long-term debt | 1,300,000,000 | 959,000,000 | |||
Borrowing capacity, net of letters of credit | $ 0 | ||||
Interest rate at December 31, 2023 | 6.40% | ||||
Average month-end debt outstanding | $ 1,171,000,000 | ||||
Weighted-average interest rate on average debt outstanding | 6.10% | ||||
Maximum month-end debt outstanding | $ 1,300,000,000 | ||||
Term loan facility expiring 2025 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 945,000,000 | 953,000,000 | |||
Debt repayment installment rate | 1% | ||||
$3.75 billion ABL facility expiring 2027 | Line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 4,250,000,000 | $ 1,250,000,000 | |||
Long-term debt | 1,261,000,000 | 1,523,000,000 | |||
Borrowing capacity, net of letters of credit | 2,967,000,000 | ||||
Letters of credit | $ 14,000,000 | ||||
Interest rate at December 31, 2023 | 6.50% | ||||
Average month-end debt outstanding | $ 1,694,000,000 | ||||
Weighted-average interest rate on average debt outstanding | 6.20% | ||||
Maximum month-end debt outstanding | $ 1,848,000,000 | ||||
5 1/2 percent Senior Notes due 2027 | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5.50% | ||||
Long-term debt | $ 498,000,000 | 498,000,000 | |||
3 7/8 percent Senior Secured Notes due 2027 | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.875% | ||||
Long-term debt | $ 745,000,000 | 744,000,000 | |||
4 7/8 percent Senior Notes due 2028 | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 4.875% | ||||
Long-term debt | $ 1,665,000,000 | 1,663,000,000 | |||
6 percent Senior Secured Notes due 2029 | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 600% | 6% | |||
Long-term debt | $ 1,488,000,000 | 1,486,000,000 | |||
5 1/4 percent Senior Notes due 2030 | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5.25% | ||||
Long-term debt | $ 745,000,000 | 744,000,000 | |||
4 percent Senior Notes due 2030 | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 4% | ||||
Long-term debt | $ 744,000,000 | 743,000,000 | |||
3 7/8 percent Senior Notes due 2031 | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.875% | ||||
Long-term debt | $ 1,091,000,000 | 1,090,000,000 | |||
3 3/4 percent Senior Notes due 2032 | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.75% | ||||
Long-term debt | $ 744,000,000 | $ 744,000,000 | |||
Term loan facility | Line of credit | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity, net of letters of credit | $ 0 | ||||
Interest rate at December 31, 2023 | 7.10% | ||||
Average month-end debt outstanding | $ 953,000,000 | ||||
Weighted-average interest rate on average debt outstanding | 6.90% | ||||
Maximum month-end debt outstanding | $ 958,000,000 | ||||
Repurchase facility | Line of credit | |||||
Debt Instrument [Line Items] | |||||
Interest rate at December 31, 2023 | 6.50% | ||||
Average month-end debt outstanding | $ 50,000,000 | ||||
Weighted-average interest rate on average debt outstanding | 6% | ||||
Maximum month-end debt outstanding | $ 100,000,000 | ||||
Senior Notes 4.875 Percent, One | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 1,661,000,000 | ||||
Senior Notes 4.875 Percent, Two | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 4,000,000 |
Debt (Short Term Debt Narrative
Debt (Short Term Debt Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2023 | Jun. 30, 2023 | |
Repurchase facility | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity | $ 100,000,000 | ||
Debt instrument, term | 1 month | ||
Line of credit | Accounts receivable securitization facility expiring 2024 | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity | $ 1,300,000,000 | ||
Long term debt extension period | 364 days | ||
Collateral amount | $ 1,545,000,000 |
Debt (Long Term Debt Narrative)
Debt (Long Term Debt Narrative) (Details) - USD ($) | 1 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||||||
Nov. 30, 2022 | May 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | May 31, 2019 | Sep. 30, 2017 | Aug. 31, 2017 | Jun. 30, 2008 | Feb. 28, 2017 | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2016 | |
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 11,582,000,000 | |||||||||||||||
Line of credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||||||||||
$3.75 billion ABL facility expiring 2024 | Line of credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, term | 5 years | |||||||||||||||
Maximum borrowing capacity | $ 1,250,000,000 | 4,250,000,000 | ||||||||||||||
Long-term debt | $ 1,261,000,000 | $ 1,523,000,000 | ||||||||||||||
Debt instrument, covenant terms, fixed charge percentage | 10% | |||||||||||||||
Term loan facility expiring 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, annual repayment rate | 1% | |||||||||||||||
Long-term debt | $ 945,000,000 | 953,000,000 | ||||||||||||||
5 1/2 percent Senior Notes due 2027 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | 500,000,000 | |||||||||||||||
Repayments of debt | $ 500,000,000 | |||||||||||||||
Long-term debt | $ 498,000,000 | 498,000,000 | ||||||||||||||
Stated interest rate | 5.50% | |||||||||||||||
3 7/8 percent Senior Secured Notes due 2027 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 745,000,000 | 744,000,000 | ||||||||||||||
Stated interest rate | 3.875% | |||||||||||||||
4 7/8 percent Senior Notes due 2028 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 1,665,000,000 | 1,663,000,000 | ||||||||||||||
Stated interest rate | 4.875% | |||||||||||||||
4 7/8 percent Senior Notes due 2028, one | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 1,661,000,000 | |||||||||||||||
4 7/8 percent Senior Notes due 2028, two | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | 4,000,000 | |||||||||||||||
6 percent Senior Secured Notes due 2029 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 1,500,000,000 | 1,500,000,000 | ||||||||||||||
Long-term debt | $ 1,488,000,000 | 1,486,000,000 | ||||||||||||||
Stated interest rate | 6% | 600% | ||||||||||||||
Debt redemption percentage of principal amount redeemed | 40% | |||||||||||||||
6 percent Senior Secured Notes due 2029 | Senior notes | Debt Instrument, Redemption, Period Between December 15th 2023 to December 15, 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage of principal amount redeemed | 10% | |||||||||||||||
5 1/4 percent Senior Notes due 2030 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 745,000,000 | 744,000,000 | ||||||||||||||
Stated interest rate | 5.25% | |||||||||||||||
4 percent Senior Notes due 2030 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 744,000,000 | 743,000,000 | ||||||||||||||
Stated interest rate | 4% | |||||||||||||||
3 7/8 percent Senior Notes due 2031 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $ 1,091,000,000 | 1,090,000,000 | ||||||||||||||
Stated interest rate | 3.875% | |||||||||||||||
3 3/4 percent Senior Notes due 2032 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||||||
Long-term debt | $ 744,000,000 | $ 744,000,000 | ||||||||||||||
Stated interest rate | 3.75% | |||||||||||||||
Debt redemption percentage of principal amount redeemed | 40% | |||||||||||||||
3 3/4 percent Senior Notes due 2032 | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage of principal amount redeemed | 101% | |||||||||||||||
3 3/4 percent Senior Notes due 2032 | Senior notes | Debt Instrument, Redemption, Period 2026 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101.875% | |||||||||||||||
3 3/4 percent Senior Notes due 2032 | Senior notes | Debt Instrument, Redemption, Period 2029 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100% | |||||||||||||||
3 3/4 percent Senior Notes due 2032 | Senior notes | Debt Instrument, Redemption, Period On Or Up To July 30, 2024 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 103.75% | |||||||||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | $3.75 billion ABL facility expiring 2024 | Line of credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 0.10% | |||||||||||||||
Subsidiaries | 5 1/2 percent Senior Notes due 2027 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 250,000,000 | $ 750,000,000 | ||||||||||||||
Debt instrument, unamortized premium | $ 1,000,000 | |||||||||||||||
Effective interest rate | 5.50% | |||||||||||||||
Subsidiaries | 5 1/2 percent Senior Notes due 2027 | Senior notes | Debt Instrument, Redemption, Period 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 102.75% | |||||||||||||||
Subsidiaries | 5 1/2 percent Senior Notes due 2027 | Senior notes | Debt Instrument, Redemption, Period 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100% | |||||||||||||||
Subsidiaries | 5 1/2 percent Senior Notes due 2027 | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Secured Notes due 2027 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||||||
Debt redemption percentage | 40% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Secured Notes due 2027 | Senior notes | Debt Instrument, Redemption, Period 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101.938% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Secured Notes due 2027 | Senior notes | Debt Instrument, Redemption, Period 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Secured Notes due 2027 | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Secured Notes due 2027 | Senior notes | Debt Instrument, Redemption, Period On Or Prior To November 15, 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 103.875% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 925,000,000 | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | Debt Instrument, Redemption, Period 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 102.438% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028 | Senior notes | Debt Instrument, Redemption, Period 2026 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028, one | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||||||
Effective interest rate | 4.84% | |||||||||||||||
Long-term debt | $ 1,669,000,000 | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028, one | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028, one | Senior notes | Debt Instrument, Redemption, Period 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 102.438% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028, one | Senior notes | Debt Instrument, Redemption, Period 2026 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100% | |||||||||||||||
Subsidiaries | 4 7/8 percent Senior Notes due 2028, two | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, unamortized premium | $ 1,000,000 | |||||||||||||||
Effective interest rate | 4.86% | |||||||||||||||
Amount exchanged for equivalent notes | $ 744,000,000 | |||||||||||||||
Long-term debt | $ 4,000,000 | |||||||||||||||
Subsidiaries | 6 percent Senior Secured Notes due 2029 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate | 6% | |||||||||||||||
Subsidiaries | 6 percent Senior Secured Notes due 2029 | Senior notes | Debt Instrument, Redemption, Period 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 103% | |||||||||||||||
Subsidiaries | 6 percent Senior Secured Notes due 2029 | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101% | |||||||||||||||
Subsidiaries | 6 percent Senior Secured Notes due 2029 | Senior notes | Debt Instrument, Redemption, Period 2027 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100% | |||||||||||||||
Subsidiaries | 6 percent Senior Secured Notes due 2029 | Senior notes | Debt Instrument, Redemption, Period On Or Prior To December 15, 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 106% | |||||||||||||||
Subsidiaries | 6 percent Senior Secured Notes due 2029 | Senior notes | Debt Instrument, Redemption, Period Between December 15th 2023 to December 15, 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 103% | |||||||||||||||
Subsidiaries | 5 1/4 percent Senior Notes due 2030 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||||||
Debt redemption percentage of principal amount redeemed | 40% | |||||||||||||||
Subsidiaries | 5 1/4 percent Senior Notes due 2030 | Senior notes | Debt Instrument, Redemption, Period 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 102.625% | |||||||||||||||
Subsidiaries | 5 1/4 percent Senior Notes due 2030 | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101% | |||||||||||||||
Subsidiaries | 5 1/4 percent Senior Notes due 2030 | Senior notes | Debt Instrument, Redemption, Period 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100% | |||||||||||||||
Subsidiaries | 5 1/4 percent Senior Notes due 2030 | Senior notes | Debt Instrument, Redemption, On Or Prior To January 15, 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 105.25% | |||||||||||||||
Subsidiaries | 4 percent Senior Notes due 2030 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||||||
Debt redemption percentage | 101% | |||||||||||||||
Stated interest rate | 4% | |||||||||||||||
Debt redemption percentage of principal amount redeemed | 40% | |||||||||||||||
Subsidiaries | 4 percent Senior Notes due 2030 | Senior notes | Debt Instrument, Redemption, Period 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 102% | |||||||||||||||
Subsidiaries | 4 percent Senior Notes due 2030 | Senior notes | Debt Instrument, Redemption, Period 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100% | |||||||||||||||
Subsidiaries | 4 percent Senior Notes due 2030 | Senior notes | Debt Instrument, Redemption, On Or Prior To January 15, 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 104% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Notes due 2031 | Senior notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 1,100,000,000 | |||||||||||||||
Debt redemption percentage of principal amount redeemed | 40% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Notes due 2031 | Senior notes | Debt Instrument, Redemption, Period 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101.938% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Notes due 2031 | Senior notes | In the event of change of control | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 101% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Notes due 2031 | Senior notes | Debt Instrument, Redemption, Period 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 100% | |||||||||||||||
Subsidiaries | 3 7/8 percent Senior Notes due 2031 | Senior notes | Debt Instrument, Redemption, Period On Or Prior To August 15, 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption percentage | 103.875% |
Debt (Schedule of Debt Maturity
Debt (Schedule of Debt Maturity) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Maturity profile: | |
2024 | $ 1,465 |
2025 | 985 |
2026 | 34 |
2027 | 2,539 |
2028 | 1,677 |
Thereafter | 4,882 |
Total | $ 11,582 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | Dec. 31, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, renewal term | 5 years |
Leases (Summary of Financial In
Leases (Summary of Financial Information Associated with Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Operating lease right-of-use assets | $ 1,099 | $ 819 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Short-term debt and current maturities of long-term debt | Short-term debt and current maturities of long-term debt |
Total leased assets | $ 1,415 | $ 1,049 |
Current | ||
Accrued expenses and other liabilities | 249 | 211 |
Short-term debt and current maturities of long-term debt | 55 | 51 |
Long-term | ||
Operating lease liabilities | $ 895 | $ 642 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Long-term debt | $ 137 | $ 72 |
Total lease liabilities | 1,336 | 976 |
Property and equipment, net | ||
Assets | ||
Accumulated depreciation | (27) | (20) |
Finance lease, right-of-use asset | 47 | 13 |
Sales of rental equipment | ||
Assets | ||
Finance lease, right-of-use asset, before accumulated amortization | 395 | 321 |
Accumulated depreciation | (126) | (104) |
Finance lease, right-of-use asset | 269 | 217 |
Non-rental vehicles | ||
Assets | ||
Finance lease, right-of-use asset, before accumulated amortization | 8 | 8 |
Buildings | ||
Assets | ||
Finance lease, right-of-use asset, before accumulated amortization | $ 66 | $ 25 |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Sublease income | $ (233) | $ (235) | $ (194) |
Net lease cost | 434 | 308 | 292 |
Short-term lease, cost | 209 | 195 | 163 |
Cost of equipment rentals, excluding depreciation | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | 582 | 494 | 432 |
Selling, general and administrative expenses | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | 12 | 11 | 11 |
Restructuring charge (2) | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | 27 | 0 | 1 |
Depreciation of rental equipment | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease cost | 36 | 31 | 36 |
Non-rental depreciation and amortization | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease cost | 2 | 2 | 2 |
Interest expense, net | |||
Lessee, Lease, Description [Line Items] | |||
Interest on lease liabilities | $ 8 | $ 5 | $ 4 |
Leases (Maturity of Lease Liabi
Leases (Maturity of Lease Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating leases | ||
2024 | $ 295 | |
2025 | 259 | |
2026 | 219 | |
2027 | 168 | |
2028 | 115 | |
Thereafter | 275 | |
Total | 1,331 | |
Less amount representing interest | (187) | |
Present value of lease liabilities | 1,144 | |
Finance leases | ||
2024 | 61 | |
2025 | 54 | |
2026 | 40 | |
2027 | 24 | |
2028 | 6 | |
Thereafter | 44 | |
Total | 229 | |
Less amount representing interest | (37) | |
Present value of lease liabilities | $ 192 | $ 123 |
Leases (Lease Term and Discount
Leases (Lease Term and Discount Rate) (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Weighted-average remaining lease term (years) | ||
Operating leases | 6 years 2 months 12 days | 4 years 9 months 18 days |
Finance leases | 6 years 6 months | 2 years 9 months 18 days |
Weighted-average discount rate | ||
Operating leases | 4.50% | 3.70% |
Finance leases | 4.80% | 3.50% |
Leases (Other Information) (Det
Leases (Other Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 304 | $ 244 | $ 221 |
Operating cash flows from finance leases | 8 | 5 | 4 |
Financing cash flows from finance leases | 64 | 57 | 69 |
Leased assets obtained in exchange for new operating lease liabilities (1) | 538 | 237 | 299 |
Leased assets obtained in exchange for new finance lease liabilities (1) | $ 132 | $ 47 | $ 66 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 561 | $ (34) | $ 78 |
Foreign | 66 | 100 | 26 |
State and local | 125 | 94 | 88 |
Current income tax expense | 752 | 160 | 192 |
Deferred | |||
Federal | 5 | 525 | 260 |
Foreign | 13 | (16) | 14 |
State and local | 17 | 28 | (6) |
Deferred income tax expense (benefit) | 35 | 537 | 268 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Computed tax at statutory tax rate | 674 | 588 | 388 |
State income taxes, net of federal tax benefit | 116 | 102 | 64 |
Other permanent items | (3) | 18 | 1 |
Change in federal valuation allowance | (15) | 15 | 0 |
Foreign restructuring | 0 | (37) | 0 |
Foreign tax rate differential | 15 | 11 | 7 |
Total | $ 787 | $ 697 | $ 460 |
Income Taxes (Components of def
Income Taxes (Components of deferred tax assets and liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Reserves and allowances | $ 193 | $ 186 |
Debt cancellation and other | 17 | 18 |
Net operating loss and credit carryforwards | 97 | 171 |
Interest carryforward | 0 | 84 |
Operating lease assets | 287 | 216 |
Total deferred tax assets | 594 | 675 |
Valuation allowance | (4) | (19) |
Total net deferred tax assets | 590 | 656 |
Property and equipment, including rental equipment | (2,921) | (2,986) |
Operating lease liabilities | (285) | (216) |
Intangibles | (85) | (125) |
Total deferred tax liability | (3,291) | (3,327) |
Total net deferred tax liability | $ (2,701) | $ (2,671) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 0 | $ 0 | $ 0 |
Decrease in unrecognized tax benefits is reasonably possible | 10 | ||
Income before income taxes, foreign | 285 | $ 233 | $ 134 |
Undistributed earnings of foreign subsidiaries amount | 1,276 | ||
Federal Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 57 | ||
Operating loss carryforwards, subject to expiration | 10 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 425 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 15 |
Income Taxes (Unrecognized tax
Income Taxes (Unrecognized tax benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns, Net [Roll Forward] | |||
Balance at January 1 | $ 16 | $ 13 | $ 12 |
Additions for tax positions related to the current year | 3 | 1 | 2 |
Additions for tax positions of prior years | 8 | 7 | 0 |
Settlements | (1) | (5) | (1) |
Balance at December 31 | $ 26 | $ 16 | $ 13 |
Commitments and Contingencies (
Commitments and Contingencies (Employee Benefits Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) plan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Number of defined contribution 401 (k) plans | plan | 2 | ||
Defined contribution plan, contributions | $ | $ 56 | $ 45 | $ 36 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | |
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 options | |||
Class of Stock [Line Items] | |||
Common stock, capital shares reserved for future issuance (in shares) | 0 | 0 | |
Restricted Stock Units (RSUs) | |||
Class of Stock [Line Items] | |||
Restricted stock units outstanding (in shares) | 400,000 | ||
Share conversion ratio | 1 | ||
Shares issued for RSUs (in shares) | 251,000 | ||
Shares paid for tax withholding (in shares) | 161,000 | ||
Compensation expense not yet recognized | $ | $ 55 | ||
Compensation expense not yet recognized, period for recognition | 1 year 7 months 6 days | ||
Fair value of RSUs vested during the period | $ | $ 95 | $ 120 | $ 94 |
Time-based Restricted Stock Units | |||
Class of Stock [Line Items] | |||
Vesting period | 3 years | ||
Vesting period, start duration from grant date | 12 months | ||
Long Term Incentive Plan, 2019 | |||
Class of Stock [Line Items] | |||
Shares available for grant (in shares) | 1,200,000 |
Common Stock (Schedule of Stock
Common Stock (Schedule of Stock Option Activity) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Shares | |
Outstanding at beginning of period (in shares) | shares | 5 |
Granted (in shares) | shares | 0 |
Exercised (shares) | shares | (2) |
Canceled (in shares) | shares | 0 |
Outstanding at end of period (in shares) | shares | 3 |
Exercisable (in shares) | shares | 3 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 80.45 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 80.94 |
Canceled (in dollars per share) | $ / shares | 0 |
Outstanding at end of period (in dollars per share) | $ / shares | 80.17 |
Exercisable (in dollars per share) | $ / shares | $ 80.17 |
Common Stock (Schedule of Intri
Common Stock (Schedule of Intrinsic Value of Options Exercised) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Intrinsic value of options outstanding as of December 31 | $ 2 | $ 1 | |
Intrinsic value of options exercisable as of December 31 | 2 | 1 | |
Intrinsic value of options exercised | $ 1 | $ 0 | $ 1 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Units | |||
Nonvested, beginning of period (in shares) | 464 | ||
Granted (in shares) | 179 | 553 | 348 |
Vested (in shares) | (319) | ||
Forfeited (in shares) | (36) | ||
Nonvested, end of period (in shares) | 288 | 464 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested, beginning of period (in dollars per share) | $ 215.23 | ||
Granted (in dollars per share) | 461.37 | $ 309.39 | $ 297.02 |
Vested (in dollars per share) | 297.27 | ||
Forfeited (in dollars per share) | 353.26 | ||
Nonvested, end of period (in dollars per share) | $ 360.41 | $ 215.23 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2022 | |
Selected Quarterly Financial Information [Abstract] | ||||||||||||
Revenues | $ 3,728 | $ 3,765 | $ 3,554 | $ 3,285 | $ 3,296 | $ 3,051 | $ 2,771 | $ 2,524 | $ 14,332 | $ 11,642 | $ 9,716 | |
Gross profit | 1,562 | 1,585 | 1,425 | 1,241 | 1,488 | 1,366 | 1,150 | 992 | 5,813 | 4,996 | 3,853 | |
Operating income | 1,063 | 1,099 | 925 | 740 | 1,024 | 921 | 715 | 572 | 3,827 | 3,232 | 2,277 | |
Net income | $ 679 | $ 703 | $ 591 | $ 451 | $ 639 | $ 606 | $ 493 | $ 367 | $ 2,424 | $ 2,105 | $ 1,386 | |
Earnings per share - basic (in dollars per share) | $ 10.04 | $ 10.30 | $ 8.60 | $ 6.50 | $ 9.20 | $ 8.69 | $ 6.91 | $ 5.07 | $ 35.40 | $ 29.77 | $ 19.14 | |
Earnings per share - diluted (in dollars per share) | 10.01 | 10.29 | 8.58 | 6.47 | 9.15 | 8.66 | 6.90 | 5.05 | 35.28 | 29.65 | $ 19.04 | |
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Merger related intangible asset amortization (in dollars per share) | (0.52) | (0.57) | (0.55) | (0.70) | (0.39) | (0.44) | (0.45) | (0.52) | (2.33) | (1.79) | ||
Impact on depreciation related to acquired fleet and property and equipment (in dollars per share) | (0.44) | (0.59) | (0.30) | (0.32) | (0.08) | (0.12) | (0.26) | (0.10) | (1.65) | (0.56) | ||
Impact of the fair value mark-up of acquired fleet (in dollars per share) | (0.25) | (0.23) | (0.25) | (0.44) | (0.12) | (0.05) | (0.05) | (0.06) | (1.17) | (0.29) | ||
Restructuring charge (in dollars per share) | $ (0.04) | $ (0.05) | $ (0.20) | $ (0.02) | 0 | 0.01 | 0 | 0 | $ (0.31) | 0 | ||
Asset impairment charge (in dollars per share) | 0 | (0.01) | (0.02) | 0 | (0.03) | |||||||
Loss on repurchase/redemption of debt securities (in dollars per share) | $ 0 | $ 0 | $ (0.18) | $ 0 | $ (0.18) | |||||||
Acquisition company revenue prior to acquisition | $ 200 | $ 200 | ||||||||||
Senior notes | 6 percent Senior Secured Notes due 2029 | ||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,500 | $ 1,500 | $ 1,500 | |||||||||
Stated interest rate | 600% | 600% | 6% |
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, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||||||||||
Net income available to common stockholders | $ 679 | $ 703 | $ 591 | $ 451 | $ 639 | $ 606 | $ 493 | $ 367 | $ 2,424 | $ 2,105 | $ 1,386 |
Denominator: | |||||||||||
Denominator for basic earnings per share—weighted-average common shares (in shares) | 68,470 | 70,703 | 72,432 | ||||||||
Effect of dilutive securities: | |||||||||||
Denominator for diluted earnings per share—adjusted weighted-average common shares (in shares) | 68,710 | 70,973 | 72,817 | ||||||||
Basic earnings per share (in dollars per share) | $ 10.04 | $ 10.30 | $ 8.60 | $ 6.50 | $ 9.20 | $ 8.69 | $ 6.91 | $ 5.07 | $ 35.40 | $ 29.77 | $ 19.14 |
Diluted earnings per share (in dollars per share) | $ 10.01 | $ 10.29 | $ 8.58 | $ 6.47 | $ 9.15 | $ 8.66 | $ 6.90 | $ 5.05 | $ 35.28 | $ 29.65 | $ 19.04 |
Employee stock options | |||||||||||
Effect of dilutive securities: | |||||||||||
Share-based payment arrangements (in shares) | 4 | 4 | 4 | ||||||||
Restricted stock units | |||||||||||
Effect of dilutive securities: | |||||||||||
Share-based payment arrangements (in shares) | 236 | 266 | 381 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for credit losses | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 134 | $ 112 | $ 108 |
Charged to Costs and Expenses | 14 | 11 | 5 |
Charged to Revenue | 60 | 49 | 31 |
Deductions and Other | 39 | 38 | 32 |
Ending balance | 169 | 134 | 112 |
Reserve for obsolescence and shrinkage | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 18 | 11 | 8 |
Charged to Costs and Expenses | 50 | 42 | 37 |
Charged to Revenue | 0 | 0 | 0 |
Deductions and Other | 51 | 35 | 34 |
Ending balance | 17 | 18 | 11 |
Self-insurance reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 177 | 151 | 127 |
Charged to Costs and Expenses | 274 | 236 | 179 |
Charged to Revenue | 0 | 0 | 0 |
Deductions and Other | 252 | 210 | 155 |
Ending balance | $ 199 | $ 177 | $ 151 |