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1、Table of ContentsUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON,D.C.20549 _FORM 10-Q_QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended March 31,2024TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANG

2、E ACT OF 1934For the transition period from to Commission File Number 1-14387Commission File Number 1-13663_ United Rentals,Inc.United Rentals(North America),Inc.(Exact Names of Registrants as Specified in Their Charters)_Delaware06-1522496Delaware86-0933835(States of Incorporation)(I.R.S.Employer I

3、dentification Nos.)100 First Stamford Place,Suite 700StamfordConnecticut06902(Address of Principal Executive Offices)(Zip Code)Registrants Telephone Number,Including Area Code:(203)622-3131Securities registered pursuant to Section 12(b)of the Act:Title of each class Trading Symbol(s)Name of each exc

4、hange on which registeredCommon Stock,$.01 par value,of United Rentals,Inc.URINew York Stock ExchangeIndicate by check mark whether the registrant:(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during thepreceding 12 months(or for such shor

5、ter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90days.x Yes o NoIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of R

6、egulationS-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes x No oIndicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting

7、company or an emerginggrowth company.See the definitions of“large accelerated filer,”“accelerated filer”,“smaller reporting company”and“emerging growth company”in Rule 12b-2 of theExchange Act.Table of ContentsLarge Accelerated Filer Accelerated Filer Non-Accelerated Filer Smaller Reporting Company

8、Emerging Growth Company If an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revisedfinancial accounting standards provided pursuant to Section 13(a)of the Exchange Act.oIndicate by check mark wheth

9、er the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).Yes x NoAs of April 22,2024,there were 66,589,926 shares of United Rentals,Imon stock,$0.01 par value,outstanding.There is no market for the common stockof United Rentals(North America),Inc.,all outstanding shares of

10、which are owned by United Rentals,Inc.This combined Form 10-Q is separately filed by(i)United Rentals,Inc.and(ii)United Rentals(North America),Inc.(which is a wholly owned subsidiary ofUnited Rentals,Inc.).United Rentals(North America),Inc.meets the conditions set forth in General Instruction(H)(1)(

11、a)and(b)of Form 10-Q and is therefore filing thisreport with the reduced disclosure format permitted by such instruction.Table of ContentsUNITED RENTALS,INC.UNITED RENTALS(NORTH AMERICA),INC.FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31,2024INDEX PagePART IFINANCIAL INFORMATIONItem 1Unaudited Co

12、ndensed Consolidated Financial Statements(unaudited)6United Rentals,Inc.Condensed Consolidated Balance Sheets6United Rentals,Inc.Condensed Consolidated Statements of Income7United Rentals,Inc.Condensed Consolidated Statements of Comprehensive Income8United Rentals,Inc.Condensed Consolidated Statemen

13、ts of Stockholders Equity9United Rentals,Inc.Condensed Consolidated Statements of Cash Flows10Notes to Unaudited Condensed Consolidated Financial Statements11Item 2Managements Discussion and Analysis of Financial Condition and Results of Operations25Item 3Quantitative and Qualitative Disclosures Abo

14、ut Market Risk39Item 4Controls and Procedures40PART IIOTHER INFORMATIONItem 1Legal Proceedings41Item 1ARisk Factors41Item 2Unregistered Sales of Equity Securities and Use of Proceeds41Item 5Other Information41Item 6Exhibits42Signatures433Table of ContentsCAUTIONARY STATEMENT REGARDING FORWARD-LOOKIN

15、G STATEMENTSThis quarterly report on Form 10-Q contains forward-looking statements within the meaning of the“safe harbor”provisions of the Private Securities LitigationReform Act of 1995.Such statements can be identified by the use of forward-looking terminology such as“believe,”“expect,”“may,”“will

16、,”“should,”“seek,”“on-track,”“plan,”“project,”“forecast,”“intend”or“anticipate,”or the negative thereof or comparable terminology,or by discussions of strategy or outlook.You arecautioned that our business and operations are subject to a variety of risks and uncertainties,many of which are beyond ou

17、r control,and,consequently,our actual resultsmay differ materially from those projected.Factors that could cause actual results to differ materially from those projected include,but are not limited to,the following:the impact of global economic conditions(including inflation,increased interest rates

18、,supply chain constraints and potential trade wars,sanctions and otherconditions related to international conflicts)and public health crises and epidemics on us,our customers and our suppliers,in the United States and the rest ofthe world;declines in construction or industrial activity,which can adv

19、ersely impact our revenues and,because many of our costs are fixed,our profitability;rates we charge and time utilization we achieve being less than anticipated;changes in customer,fleet,geographic and segment mix;excess fleet in the equipment rental industry;inability to benefit from government spe

20、nding,including spending associated with infrastructure projects,or a reduction in government spending;trends in oil and natural gas,including significant increases in the prices of oil or natural gas,could adversely affect the demand for our services and products;competition from existing and new c

21、ompetitors;the cyclical nature of the industry in which we operate and the industries of our customers,such as those in the construction industry;costs we incur being more than anticipated,including as a result of inflation,and the inability to realize expected savings in the amounts or time framesp

22、lanned;our significant indebtedness(which totaled$12.4 billion at March 31,2024)requires us to use a substantial portion of our cash flow for debt service and canconstrain our flexibility in responding to unanticipated or adverse business conditions;inability to refinance our indebtedness on terms t

23、hat are favorable to us,including as a result of volatility and uncertainty in capital or credit markets orincreases in interest rates,or at all;incurrence of additional debt,which could exacerbate the risks associated with our current level of indebtedness;noncompliance with financial or other cove

24、nants in our debt agreements,which could result in our lenders terminating the agreements and requiring us torepay outstanding borrowings;restrictive covenants and the amount of borrowings permitted under our debt instruments,which can limit our financial and operational flexibility;inability to acc

25、ess the capital that our businesses or growth plans may require,including as a result of uncertainty in capital or credit markets;the possibility that companies that we have acquired or may acquire could have undiscovered liabilities,or that companies or assets that we have acquired ormay acquire co

26、uld involve other unexpected costs,may strain our management capabilities,or may be difficult to integrate,and that we may not realize theexpected benefits from an acquisition over the timeframe we expect,or at all;incurrence of impairment charges;fluctuations in the price of our common stock and in

27、ability to complete stock repurchases or pay dividends in the time frames and/or on the terms anticipated;our charter provisions as well as provisions of certain debt agreements and our significant indebtedness may have the effect of making more difficult orotherwise discouraging,delaying or deterri

28、ng a takeover or other change of control of us;inability to manage credit risk adequately or to collect on contracts with a large number of customers;turnover in our management team and inability to attract and retain key personnel,as well as loss,absenteeism or the inability of employees to work or

29、perform key functions in light of public health crises or epidemics;inability to obtain equipment and other supplies for our business from our key suppliers on acceptable terms or at all,as a result of supply chain disruptions,insolvency,financial difficulties or other factors;increases in our maint

30、enance and replacement costs and/or decreases in the residual value of our equipment;inability to sell our new or used fleet in the amounts,or at the prices,we expect;4Table of Contentsrisks related to security breaches,cybersecurity attacks,failure to protect personal information,compliance with pr

31、ivacy,data protection and cyber incidentreporting laws and regulations,and other significant disruptions in our information technology systems;risks related to climate change and climate change regulation;risks related to our environmental and social goals,including our greenhouse gas intensity redu

32、ction goal;the fact that our holding company structure requires us to depend in part on distributions from subsidiaries and such distributions could be limited bycontractual or legal restrictions;shortfalls in our insurance coverage;increases in our loss reserves to address business operations or ot

33、her claims and any claims that exceed our established levels of reserves;incurrence of expenses(including indemnification obligations)and other costs in connection with litigation,regulatory and investigatory matters;the costs of complying with environmental,safety and foreign laws and regulations,a

34、s well as other risks associated with non-U.S.operations,includingcurrency exchange risk,and tariffs;the outcome or other potential consequences of regulatory and investigatory matters and litigation;labor shortages and/or disputes,work stoppages or other labor difficulties,which may impact our prod

35、uctivity and increase our costs,and changes in law thatcould affect our labor relations or operations generally;andthe effect of changes in tax law.For a more complete description of these and other possible risks and uncertainties,please refer to our Annual Report on Form 10-K for the year endedDec

36、ember 31,2023,as well as to our subsequent filings with the SEC.Our forward-looking statements contained herein speak only as of the date hereof,and we make nocommitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events

37、,circumstances or changesin expectations.5Table of ContentsPART I.FINANCIAL INFORMATION Item 1.Financial StatementsUNITED RENTALS,INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In millions,except share data)March 31,2024December 31,2023(unaudited)ASSETSCash and cash equivalents$429$363 Accounts receivabl

38、e,net2,221 2,230 Inventory208 205 Prepaid expenses and other assets151 135 Total current assets3,009 2,933 Rental equipment,net13,979 14,001 Property and equipment,net916 903 Goodwill6,863 5,940 Other intangible assets,net666 670 Operating lease right-of-use assets1,181 1,099 Other long-term assets4

39、4 43 Total assets$26,658$25,589 LIABILITIES AND STOCKHOLDERS EQUITYShort-term debt and current maturities of long-term debt$1,087$1,465 Accounts payable959 905 Accrued expenses and other liabilities1,318 1,267 Total current liabilities3,364 3,637 Long-term debt11,318 10,053 Deferred taxes2,690 2,701

40、 Operating lease liabilities966 895 Other long-term liabilities200 173 Total liabilities18,538 17,459 Common stock$0.01 par value,500,000,000 shares authorized,115,101,951 and 66,796,805 shares issued andoutstanding,respectively,at March 31,2024 and 115,010,396 and 67,269,577 shares issued and outst

41、anding,respectively,at December 31,20231 1 Additional paid-in capital2,638 2,650 Retained earnings12,103 11,672 Treasury stock at cost48,305,146 and 47,740,819 shares at March 31,2024 and December 31,2023,respectively(6,343)(5,965)Accumulated other comprehensive loss(279)(228)Total stockholders equi

42、ty8,120 8,130 Total liabilities and stockholders equity$26,658$25,589 See accompanying notes.6Table of ContentsUNITED RENTALS,INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(UNAUDITED)(In millions,except per share amounts)Three Months Ended March 31,20242023Revenues:Equipment rentals$2,929$2,740 Sal

43、es of rental equipment383 388 Sales of new equipment48 44 Contractor supplies sales36 34 Service and other revenues89 79 Total revenues3,485 3,285 Cost of revenues:Cost of equipment rentals,excluding depreciation1,244 1,162 Depreciation of rental equipment582 575 Cost of rental equipment sales196 19

44、8 Cost of new equipment sales38 36 Cost of contractor supplies sales25 24 Cost of service and other revenues54 49 Total cost of revenues2,139 2,044 Gross profit1,346 1,241 Selling,general and administrative expenses389 382 Restructuring charge1 1 Non-rental depreciation and amortization104 118 Opera

45、ting income852 740 Interest expense,net160 150 Other income,net(3)(4)Income before provision for income taxes695 594 Provision for income taxes153 143 Net income$542$451 Basic earnings per share$8.06$6.50 Diluted earnings per share$8.04$6.47 See accompanying notes.7Table of ContentsUNITED RENTALS,IN

46、C.CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(UNAUDITED)(In millions)Three Months Ended March 31,20242023 Net income$542$451 Other comprehensive(loss)income,net of tax:Foreign currency translation adjustments(1)(51)1 Fixed price diesel swaps(1)Other comprehensive(loss)income(1)(51)Comp

47、rehensive income$491$451(1)There were no material reclassifications from accumulated other comprehensive loss reflected in other comprehensive income(loss)during 2024 or 2023.Therewere no material taxes associated with other comprehensive income(loss)during 2024 or 2023.See accompanying notes.8Table

48、 of ContentsUNITED RENTALS,INC.CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY(UNAUDITED)(In millions)Three Months Ended March 31,2024 Common Stock Treasury Stock Number ofShares(1)AmountAdditionalPaid-inCapitalRetainedEarningsNumber ofSharesAmountAccumulated OtherComprehensive Loss(2)Balan

49、ce at December 31,202367$1$2,650$11,672 48$(5,965)$(228)Net income542 Dividends declared(3)(111)Foreign currency translation adjustments(51)Stock compensation expense,net 28 Tax withholding for share based compensation(40)Repurchase of common stock (378)Balance at March 31,202467$1$2,638$12,103 48$(

50、6,343)$(279)Three Months Ended March 31,2023 Common Stock Treasury Stock Number ofShares(1)AmountAdditionalPaid-inCapitalRetainedEarningsNumber ofSharesAmountAccumulated OtherComprehensive Loss(2)Balance at December 31,202269$1$2,626$9,656 45$(4,957)$(264)Net income451 Dividends declared(3)(104)Fore

51、ign currency translation adjustments1 Fixed price diesel swaps(1)Stock compensation expense,net1 24 Tax withholding for share based compensation(52)Repurchase of common stock(1)1(251)Balance at March 31,202369$1$2,598$10,003 46$(5,208)$(264)(1)Common stock outstanding decreased by approximately two

52、million net shares during the year ended December 31,2023.(2)The Accumulated Other Comprehensive Loss balance primarily reflects foreign currency translation adjustments.(3)We declared dividends of$1.63 and$1.48 per share during the three months ended March 31,2024 and 2023,respectively.See accompan

53、ying notes.9Table of ContentsUNITED RENTALS,INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)(In millions)Three Months Ended March 31,20242023Cash Flows From Operating Activities:Net income$542$451 Adjustments to reconcile net income to net cash provided by operating activities:Deprecia

54、tion and amortization686 693 Amortization of deferred financing costs and original issue discounts4 4 Gain on sales of rental equipment(187)(190)Gain on sales of non-rental equipment(3)(4)Insurance proceeds from damaged equipment(13)(9)Stock compensation expense,net28 24 Restructuring charge1 1 Loss

55、 on repurchase/redemption/amendment of debt securities1 (Decrease)increase in deferred taxes(17)35 Changes in operating assets and liabilities,net of amounts acquired:Decrease(increase)in accounts receivable98(13)Increase in inventory(3)(2)Decrease in prepaid expenses and other assets15 125 Decrease

56、 in accounts payable(74)(25)Decrease in accrued expenses and other liabilities(49)(151)Net cash provided by operating activities1,029 939 Cash Flows From Investing Activities:Payments for purchases of rental equipment(511)(797)Payments for purchases of non-rental equipment and intangible assets(58)(

57、73)Proceeds from sales of rental equipment383 388 Proceeds from sales of non-rental equipment13 12 Insurance proceeds from damaged equipment13 9 Purchases of other companies,net of cash acquired(1,118)(299)Purchases of investments(2)Net cash used in investing activities(1,280)(760)Cash Flows From Fi

58、nancing Activities:Proceeds from debt4,609 2,330 Payments of debt(3,743)(2,110)Common stock repurchased,including tax withholdings for share based compensation(415)(303)Payments of financing costs(16)Dividends paid(110)(103)Net cash provided by(used in)financing activities325(186)Effect of foreign e

59、xchange rates(8)Net increase(decrease)in cash and cash equivalents66(7)Cash and cash equivalents at beginning of period363 106 Cash and cash equivalents at end of period$429$99 Supplemental disclosure of cash flow information:Cash paid for income taxes,net$131$29 Cash paid for interest195 178 See ac

60、companying notes.10Table of ContentsUNITED RENTALS,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Dollars in millions,except per share data,unless otherwise indicated)1.Organization,Description of Business and Basis of PresentationUnited Rentals,Inc.(“Holdings,”“URI”or the“Compan

61、y”)is principally a holding company and conducts its operations primarily through its wholly ownedsubsidiary,United Rentals(North America),Inc.(“URNA”),and subsidiaries of URNA.Holdings primary asset is its sole ownership of all issued and outstanding sharesof common stock of URNA.URNAs various cred

62、it agreements and debt instruments place restrictions on its ability to transfer funds to its shareholder.We rent equipment to a diverse customer base that includes construction and industrial companies,manufacturers,utilities,municipalities,homeowners andgovernment entities.We primarily operate in

63、the United States and Canada,and have a limited presence in Europe,Australia and New Zealand.In addition to rentingequipment,we sell new and used rental equipment,as well as related contractor supplies,parts and service.We have prepared the accompanying unaudited condensed consolidated financial sta

64、tements in accordance with the accounting policies described in our annualreport on Form 10-K for the year ended December 31,2023(the“2023 Form 10-K”)and the interim reporting requirements of Form 10-Q.Accordingly,certaininformation and note disclosures normally included in financial statements prep

65、ared in accordance with U.S.generally accepted accounting principles(“GAAP”)havebeen condensed or omitted.These unaudited condensed consolidated financial statements should be read in conjunction with the 2023 Form 10-K.In our opinion,all adjustments,consisting only of normal recurring adjustments,w

66、hich are necessary for a fair presentation of financial condition,operating resultsand cash flows for the interim periods presented have been made.Interim results of operations are not necessarily indicative of the results of the full year.New Accounting PronouncementsImprovements to Reportable Segm

67、ent 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 segmentexpenses that are regu

68、larly provided to an entitys chief operating decision maker(“CODM”)and a description of other segment items(the difference between segmentrevenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss)by reportable segment,as w

69、ellas 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 segmentperformance and deciding how to allocate resources.Annual disclosures are required for fiscal years beginning after December 15,2023 and

70、 interim disclosures arerequired for periods within fiscal years beginning after December 15,2024.Retrospective application is required,and early adoption is permitted.These requirements arenot expected to have an impact on our financial statements,but will result in significantly expanded reportabl

71、e 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 disc

72、losures.ASU 2023-09 is effective forfiscal years beginning after December 15,2024,may be applied prospectively or retrospectively,and allows for early adoption.These requirements are not expected tohave an impact on our financial statements,but will impact our income tax disclosures.2.Revenue Recogn

73、itionRevenue Recognition Accounting StandardsWe recognize revenue in accordance with two different accounting standards:1)Topic 606(which addresses revenue from contracts with customers)and 2)Topic842(which addresses lease revenue).Under Topic 606,revenue from contracts with customers is measured ba

74、sed on the consideration specified in the contract with thecustomer,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 distinctgood or service to a customer,and is the unit of account under Topic 606.As

75、 reflected below,most of our revenue is accounted for under Topic 842.Our contracts withcustomers generally do not include multiple performance obligations.We recognize revenue when we satisfy a performance obligation by transferring control over aproduct or service to a customer.The amount of reven

76、ue recognized reflects the consideration we expect to be entitled to in exchange for such products or services.11Table of ContentsUNITED RENTALS,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)(Dollars in millions,except per share data,unless otherwise indicated)Nature o

77、f goods and servicesIn the following table,revenue is summarized by type and by the applicable accounting standard.Three Months Ended March 31,20242023Topic 842Topic 606TotalTopic 842Topic 606TotalRevenues:Owned equipment rentals$2,404$2,404$2,266$2,266 Re-rent revenue55555252Ancillary and other ren

78、tal revenues:Delivery and pick-up214214203203Other2015525616554219Total ancillary and other rental revenues201 269 470 165 257 422 Total equipment rentals2,660 269 2,929 2,483 257 2,740 Sales of rental equipment383383388388Sales of new equipment48484444Contractor supplies sales36363434Service and ot

79、her revenues89897979Total revenues$2,660$825$3,485$2,483$802$3,285 Revenues by reportable segment are presented in note 4 of the condensed consolidated financial statements,using the revenue captions reflected in our condensedconsolidated statements of operations.The majority of our revenue is recog

80、nized in our general rentals segment and in the U.S.(for the three months ended March 31,2024,73 percent and 91 percent,respectively).We believe that the disaggregation of our revenue from contracts to customers as reflected above,coupled with the furtherdiscussion below and the reportable segment d

81、isclosures in note 4,depicts how the nature,amount,timing and uncertainty of our revenue and cash flows are affected byeconomic 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 mos

82、t significant revenue type(they accounted for 69 percent of total revenues for the three months ended March 31,2024)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 ofwhether our contr

83、acts contain leases generally does not require significant assumptions or judgments.Our lease revenues do not include material amounts of variablepayments.Owned equipment rentals:Owned equipment rentals represent revenues from renting equipment that we own.We do not generally provide an option for t

84、he lesseeto 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

85、acustomer 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$32.14 per day.The daily rate for recognition purposes is calculated by dividing the monthly rate of$

86、900 by the monthlyterm 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 andtherefore unsure of which rental contract period will apply.As part of this straight-line methodology,when the equipmen

87、t is returned,we recognize as incremental revenue the excess,if any,between the amount the customeris 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 cumulativeamount of revenue recognized to da

88、te.In any given accounting period,we will have customers return equipment and be contractually required to pay us more than thecumulative amount of revenue recognized to date under the straight-line methodology.For instance,continuing the above example,if the customer rented the above pieceof equipm

89、ent 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 difference12Table of ContentsUNITED RENTALS,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)(Dollars

90、in millions,except per share data,unless otherwise indicated)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 bille

91、d to customers in excess of recognizable revenue as deferred revenue on our balance sheet.We had deferred revenue(associated with bothTopic 842 and Topic 606)of$146 and$138 as of March 31,2024 and December 31,2023,respectively.As noted above,we are unsure of when the customer will return rented equi

92、pment.As such,we do not know how much the customer will owe us upon return of theequipment and cannot provide a maturity analysis of future lease payments.Our equipment is generally rented for short periods of time.Lessees do not provide residualvalue guarantees on rented equipment.We expect to deri

93、ve significant future benefits from our equipment following the end of the rental term.Our rentals are generally short-term in nature,and ourequipment 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 t

94、heequipment.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 assubleases.The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above.“Other”equipment

95、rental revenue is primarily comprised of 1)Rental Protection Plan(or RPP)revenue associated with the damage waiver customers canpurchase when they rent our equipment to protect against potential loss or damage,2)environmental charges associated with the rental of equipment,3)charges forrented equipm

96、ent 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 Top

97、ic 606 are recognizedat 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

98、our customers which are recognized when theequipment 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 isprobable.Service and

99、 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 liabilitiesAs reflected above,most of our equipment rental

100、revenue is accounted for under Topic 842(such revenue represented 76 percent of our total revenues for the threemonths ended March 31,2024).The customers that are responsible for the remaining revenue that is accounted for under Topic 606 are generally the same customers thatrent our equipment.We ma

101、nage credit risk associated with our accounts receivables at the customer level.Because the same customers generate the revenues that areaccounted 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

102、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.Ourlargest customer accounted for one percent or less of total revenues for the three months ended March 31,

103、2024,and for each of the last three full years.Our customerwith the largest receivable balance represented approximately one percent of total receivables at March 31,2024 and December 31,2023.We manage credit risk throughcredit approvals,credit limits and other monitoring procedures.Our allowance fo

104、r 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 changi

105、ng circumstances,including changes in the economy or13Table of ContentsUNITED RENTALS,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)(Dollars in millions,except per share data,unless otherwise indicated)in the particular circumstances of individual customers.Accordingly

106、,we may be required to increase or decrease our allowance.Trade receivables that have contractualmaturities 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 taxpurposes.Write-offs of such receivable

107、s require management approval based on specified dollar thresholds.See the table below for a rollforward of our allowance forcredit losses.The measurement of expected credit losses is based on relevant information from past events,including historical experiences,current conditions and reasonableand

108、 supportable forecasts that affect collectibility.Trade receivables are the only material financial asset we have that is subject to the requirement to measure expectedcredit losses as noted above,as this requirement does not apply to receivables arising from operating lease revenues.Substantially a

109、ll of our non-lease trade receivablesare 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 totalrevenues for the three months ended March 31,2024,and these revenues account for corresponding po

110、rtions of the$2.221 billion of net accounts receivable and theassociated allowance for credit losses of$174 as of March 31,2024).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 isaccounted for

111、under Topic 606 are generally the same customers that rent our equipment.We manage credit risk associated with our accounts receivables at the customerlevel.The rollforward of our allowance for credit losses(in total,and associated with revenues arising from both Topic 606 and Topic 842)is shown bel

112、ow.Three Months EndedMarch 31,2024Three Months EndedMarch 31,2023Beginning balance$169$134 Charged to costs and expenses(1)4 3 Charged to revenue(2)9 13 Deductions and other(3)(8)(4)Ending balance$174$146 _(1)Reflects bad debt expenses recognized within selling,general and administrative expenses(as

113、sociated 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 842revenues).(3)Primarily represents write-offs of accounts,net of immaterial recoveries and other act

114、ivity.We do not have material contract assets,or impairment losses associated therewith,or material contract liabilities,associated with contracts with customers.Ourcontracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue.We did not r

115、ecognize material revenue duringthe three months ended March 31,2024 or 2023 that was included in the contract liability balance as of the beginning of such periods.Performance obligationsMost of our Topic 606 revenue is recognized at a point-in-time,rather than over time.Accordingly,in any particul

116、ar period,we do not generally recognize asignificant amount of revenue from performance obligations satisfied(or partially satisfied)in previous periods,and the amounts of such revenue recognized during thethree months ended March 31,2024 and 2023 were not material.We also do not expect to recognize

117、 material revenue in the future related to performance obligations thatwere unsatisfied(or partially unsatisfied)as of March 31,2024.Payment termsOur Topic 606 revenues do not include material amounts of variable consideration.Our payment terms vary by the type and location of our customer and thepr

118、oducts or services offered.The time between invoicing and when payment is due is not significant.Our contracts do not generally include a significant financingcomponent.For certain products or services and customer types,we require payment before the products or services are delivered to the custome

119、r.Our contracts withcustomers do not generally result in significant obligations associated with returns,refunds or warranties.See above for a discussion of how we manage credit risk.14Table of ContentsUNITED RENTALS,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)(Dolla

120、rs in millions,except per share data,unless otherwise indicated)Revenue is recognized net of taxes collected from customers,which are subsequently remitted to governmental authorities.Contract costsWe do not recognize any assets associated with the incremental costs of obtaining a contract with a cu

121、stomer(for example,a sales commission)that we expect torecover.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 theincremental costs of obtaining a contract as an expense when incurred if the amor

122、tization period of the asset that we otherwise would have recognized is one year or less.Contract estimates and judgmentsOur 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

123、 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 standaloneselling price for each performance obligation;Our revenues do not include material amounts of variable consideration

124、,or result in significant obligations associated with returns,refunds or warranties;andMost 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.Asnoted above,our Topic 606 revenue is generally recogni

125、zed 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 standaloneselling prices on a regular basis.15Table of ContentsUNITED RENTALS,INC.NOTES TO UNAUDIT

126、ED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)(Dollars in millions,except per share data,unless otherwise indicated)3.AcquisitionsOn March 15,2024,we completed the acquisition of Yak Access,LLC,Yak Mat,LLC and New South Access&Environmental Solutions,LLC(collectively,“Yak”).Yak was a lead

127、er in the North American matting industry with a fleet of approximately 600,000 hardwood,softwood,and composite mats that provide surfaceprotection across both construction and maintenance,repair and operations(“MRO”)applications,and served customers primarily in the industrial sector across over 40

128、states.The acquisition is expected to:Provide entry into the matting market via an industry leader with established scale across fleet,operations,and talent;Augment exposure to the energy and power verticals,where significant investment is expected over the next several decades;and Enhance our one-s

129、top-shop value proposition with immediate cross-selling opportunities to existing and new construction and MRO customers.The acquisition date fair value of the purchase price to acquire Yak was$1.165 billion,comprised of cash and$50 of estimated contingent consideration(suchamount is also the maximu

130、m possible amount due)that could become payable to the seller based on revenue attainment in the first two years after closing.The acquisitionand related fees and expenses were funded through the issuance of$1.100 billion principal amount of 6/Senior Notes(see note 7 to the condensed consolidatedfin

131、ancial statements for further information)and drawings on our senior secured asset-based revolving credit facility(“ABL facility”).The following table summarizes the net book values of the assets acquired and liabilities assumed as of the acquisition date.The initial accounting for theacquisition is

132、 incomplete,principally related to finalizing 1)the measurement of the acquired net working capital,2)the valuation of the acquired equipment(inclusive ofthe completion of our usual and customary procedures to validate the existence of the acquired rental fleet)and intangible assets,3)the impact of

133、lease accounting,4)thevaluation of the contingent consideration noted above and 5)the associated income tax considerations.All amounts below could change,potentially materially,as there issignificant additional information that we must obtain to finalize the valuations of the assets acquired and lia

134、bilities assumed,and to establish the value of the potentialintangible assets,primarily because of the proximity of the acquisition date to the balance sheet date of March 31,2024.Accounts receivable(1)$99 Rental equipment152 Property and equipment19 Operating lease right-of-use assets6 Other assets

135、18 Total identifiable assets acquired294 Accounts payable,accrued expenses and other liabilities(104)Operating lease liabilities(6)Total liabilities assumed(110)Net identifiable assets acquired184 Goodwill(2)981 Net assets acquired$1,165(1)The estimated fair value of accounts receivables acquired wa

136、s$99,and the gross contractual amount was$102.We estimated that$3 would beuncollectible.(2)All of the goodwill was assigned to our specialty segment.As noted above,we have not yet obtained all the information required to finalize thevaluations of the assets acquired and liabilities assumed,primarily

137、 because of the proximity of the acquisition date to the balance sheet date of March 31,2024.As such,we expect that goodwill will change materially from the amount noted above.Once finalized,we expect that the goodwill that results from the acquisition will beprimarily reflective of Yaks going-conce

138、rn value,the value of Yaks assembled workforce and new customer relationships expected to arise from the acquisition.All ofthe goodwill is expected to be deductible for income tax purposes(because the acquired Yak entities were sold as disregarded entities,the acquisition was treated as anasset purc

139、hase for income tax purposes,which resulted in the goodwill that is deductible for income tax purposes equaling the total acquired goodwill).1816Table of ContentsUNITED RENTALS,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)(Dollars in millions,except per share data,unl

140、ess otherwise indicated)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,inlong-term debt in our consolidated balance sheets.It is not practicable to reasonably estimate the amounts of

141、revenue and earnings of Yak since the acquisition date,primarily due to the movement of fleet between URI locations and the acquired Yak locations,as well as our corporate structure and the allocation of corporate costs.Pro forma financial informationThe pro forma information below gives effect to t

142、he Yak acquisition as if it had been completed on January 1,2023.The table below presents unaudited pro formarevenue information as if the Yak acquisition had been included in our consolidated results for the entire period reflected.The pro forma information is not necessarilyindicative of our reven

143、ue results had the acquisition been completed on the above date,nor is it necessarily indicative of our future results.The pro forma revenueinformation reflects the historic revenue of Yak as explained in the table below,and does not include any additional revenue opportunities following the acquisi

144、tion.Proforma revenue information is presented below for 2023,but not for 2024,as we do not yet have all the required information to determine the amount of 2024 revenueprior to the acquisition date,primarily because of the proximity of the acquisition date to March 31,2024.Pro forma income informat

145、ion is also not presented,as weexpect that there will be material adjustments to the values of the assets acquired,including establishing the value of the potential intangible assets,and liabilitiesassumed,and,as such,we cannot presently provide meaningful pro forma income information.The opening ba

146、lance sheet values assigned to the Yak assets acquired andliabilities assumed are based on preliminary valuations and are subject to change as we obtain additional information during the acquisition measurement period.Weexpect that such valuation changes could be material,primarily because of the pr

147、oximity of the acquisition date to March 31,2024.Increases or decreases in the estimatedfair values of the net assets acquired may impact our statements of income in future periods.In future periods,we expect to provide pro forma revenue and incomeinformation for both 2024 and 2023.Three Months Ende

148、d March 31,2023United Rentals historic revenue$3,285 Yak historic revenue(1)91 Pro forma revenue3,376(1)Yak revenue reflects only the historical results of the entities being acquired,and includes an estimate of revenue from mat rentals to a commonlycontrolled entity that were eliminated in consolid

149、ation by Yak.During 2024 and 2023,we completed other acquisitions that were not significant individually or in the aggregate.See the condensed consolidated statements ofcash flows for the total cash outflow for purchases of other companies(including Yak),net of cash acquired.17Table of ContentsUNITE

150、D RENTALS,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)(Dollars in millions,except per share data,unless otherwise indicated)4.Segment InformationOur reportable segments are i)general rentals and ii)specialty.For general rentals,the divisions discussed below,which are

151、 our operating segments,are aggregatedinto 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 areaggregated into our reportable segments have similar economic characteristics,as each division

152、 is capital intensive,offers similar products to similar customers,usessimilar methods to distribute its products,and is subject to similar competitive risks.The aggregation of our divisions also reflects the management structure that we usefor making operating decisions and assessing performance.We

153、 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,earthmovingequipment and material handling equipment,ii)aerial work

154、 platforms,such as boom lifts and scissor lifts and iii)general tools and light equipment,such as pressurewashers,water pumps and power tools.The general rentals segment reflects the aggregation of four geographic divisionsCentral,Northeast,Southeast and Westandoperates throughout the United States

155、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 setupand other services on such rented equipment)including i)trench safety equipment,such as trench shields,aluminum hydraulic shoring sys

156、tems,slide rails,crossingplates,construction lasers and line testing equipment for underground work,ii)power and HVAC equipment,such as portable diesel generators,electrical distributionequipment,and temperature control equipment,iii)fluid solutions equipment primarily used for fluid containment,tra

157、nsfer and treatment,iv)mobile storage equipmentand modular office space and v)surface protection mats.The specialty segments customers include construction companies involved in infrastructure projects,municipalities and industrial companies.This segment primarily operates in the United States and C

158、anada,and has a limited presence in Europe,Australia and NewZealand.The following tables set forth financial information by segment.GeneralrentalsSpecialtyTotalThree Months Ended March 31,2024Equipment rentals$2,070$859$2,929 Sales of rental equipment346 37 383 Sales of new equipment29 19 48 Contrac

159、tor supplies sales20 16 36 Service and other revenues81 8 89 Total revenue2,546 939 3,485 Depreciation and amortization expense574 112 686 Equipment rentals gross profit681 422 1,103 Capital expenditures(1)506 147 653 Three Months Ended March 31,2023Equipment rentals$2,018$722$2,740 Sales of rental

160、equipment350 38 388 Sales of new equipment18 26 44 Contractor supplies sales21 13 34 Service and other revenues72 7 79 Total revenue2,479 806 3,285 Depreciation and amortization expense577 116 693 Equipment rentals gross profit663 340 1,003 Capital expenditures(1)683 187 870 _(1)The condensed consol

161、idated statements of cash flows include the payments for capital expenditures,while the table above reflects the gross capital expenditures.Accounts payable as of March 31,2024 and December 31,2023 included$158 and18Table of ContentsUNITED RENTALS,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANC

162、IAL STATEMENTS(Continued)(Dollars in millions,except per share data,unless otherwise indicated)$74,respectively,of amounts due but unpaid for purchases of rental equipment.The net impact of accrued purchases of rental equipment was not material for thethree months ended March 31,2023.March 31,2024De

163、cember 31,2023Total reportable segment assetsGeneral rentals$20,203$20,411 Specialty(1)6,455 5,178 Total assets$26,658$25,589 _(1)The increase in the specialty segment assets primarily reflects the impact of the Yak acquisition discussed in note 3 to the condensed consolidated financialstatements.Eq

164、uipment rentals gross profit is the primary measure management reviews to make operating decisions and assess segment performance.The following is areconciliation of equipment rentals gross profit to income before provision for income taxes:Three Months Ended March 31,20242023Total equipment rentals

165、 gross profit$1,103$1,003 Gross profit from other lines of business243 238 Selling,general and administrative expenses(389)(382)Restructuring charge(1)(1)(1)Non-rental depreciation and amortization(104)(118)Interest expense,net(160)(150)Other income,net3 4 Income before provision for income taxes$69

166、5$594 _(1)Primarily reflects severance and branch closure charges associated with our restructuring programs.The restructuring charges generally involve the closure of alarge number of branches over a short period of time,often in periods following a major acquisition.As of March 31,2024,there were

167、no open restructuringprograms.19Table of ContentsUNITED RENTALS,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)(Dollars in millions,except per share data,unless otherwise indicated)5.Goodwill and Other Intangible AssetsThe following table presents the changes in the car

168、rying amount of goodwill for the three months ended March 31,2024:General rentalsSpecialtyTotalBalance at January 1,2024(1)$4,775$1,165$5,940 Goodwill related to acquisitions(2)2 934 936 Foreign currency translation and other adjustments(4)(9)(13)Balance at March 31,2024(1)$4,773$2,090$6,863 _(1)The

169、 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 primarilyrecorded in our general rentals segment.(2)Includes goodwill adjustments for the effect on goodwill of changes to net assets acquired during t

170、he measurement period.The goodwill related to acquisitionsabove primarily reflects the March 2024 acquisition of Yak,which is discussed note 3 to our condensed consolidated financial statements.Other intangible assets were comprised of the following at March 31,2024 and December 31,2023:March 31,202

171、4Weighted-Average RemainingAmortization PeriodGrossCarrying AmountAccumulatedAmortizationNetAmountNon-compete agreements3 years$171$63$108 Customer relationships6 years$2,523$1,967$556 Trade names and associated trademarks2 years$8$6$2 December 31,2023Weighted-Average RemainingAmortization PeriodGro

172、ssCarrying AmountAccumulatedAmortizationNetAmountNon-compete agreements4 years$176$58$118 Customer relationships6 years$2,468$1,919$549 Trade names and associated trademarks2 years$9$6$3 As discussed in note 3 to our condensed consolidated financial statements,in March 2024,we completed the acquisit

173、ion of Yak.We have not yet obtained all theinformation required to finalize the valuations of the assets acquired and liabilities assumed,and to establish the value of the potential intangible assets,primarily becauseof the proximity of the acquisition date to the balance sheet date of March 31,2024

174、.As such,we have not yet recorded,as of March 31,2024,any intangible assetsassociated with the acquisition.Amortization expense for other intangible assets was$60 and$79 for the three months ended March 31,2024 and 2023,respectively.As of March 31,2024,estimated amortization expense for other intang

175、ible assets for each of the next five years and thereafter is as follows:2024$162 2025177 2026132 202787 202845 Thereafter63 Total$666 6.Fair Value MeasurementsAs of March 31,2024 and December 31,2023,the amounts of our assets and liabilities that were accounted for at fair value were immaterial.20T

176、able of ContentsUNITED RENTALS,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)(Dollars in millions,except per share data,unless otherwise indicated)Fair value measurements are categorized in one of the following three levels based on the lowest level input that is signi

177、ficant to the fair value measurement in itsentirety: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

178、 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 mar

179、ket 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

180、)and significant to the fair value measure.Fair Value of Financial InstrumentsThe carrying amounts reported in our condensed consolidated balance sheets for accounts receivable,accounts payable and accrued expenses and other liabilitiesapproximate fair value due to the immediate to short-term maturi

181、ty of these financial instruments.The fair values of our variable rate debt facilities and finance leasesapproximated their book values as of March 31,2024 and December 31,2023.The estimated fair values of our other financial instruments,all of which are categorized inLevel 1 of the fair value hiera

182、rchy,as of March 31,2024 and December 31,2023 have been calculated based upon available market information,and were as follows:March 31,2024December 31,2023 CarryingAmountFairValueCarryingAmountFairValueSenior notes$8,813$8,466$7,720$7,442 7.DebtDebt,net of unamortized original issue discounts or pr

183、emiums,and unamortized debt issuance costs,consists of the following:21Table of ContentsUNITED RENTALS,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)(Dollars in millions,except per share data,unless otherwise indicated)March 31,2024December 31,2023Repurchase facility e

184、xpiring 2024(1)$100 Accounts receivable securitization facility expiring 2024(1)(2)1,021 1,300$4.25 billion ABL facility expiring 2027(1)1,371 1,261 Term loan facility expiring 2031(1)(3)990 945 5/percent Senior Notes due 2027498 498 3/percent Senior Secured Notes due 2027746 745 4/percent Senior No

185、tes due 2028(4)1,665 1,665 6 percent Senior Secured Notes due 20291,488 1,488 5/percent Senior Notes due 2030745 745 4 percent Senior Notes due 2030745 744 3/percent Senior Notes due 20311,092 1,091 3/percent Senior Notes due 2032744 744 6/percent Senior Notes due 2034(5)1,090 Finance leases210 192

186、Total debt12,405 11,518 Less short-term portion(6)(1,087)(1,465)Total long-term debt$11,318$10,053 _(1)The table below presents financial information associated with our variable rate indebtedness as of and for the three months ended March 31,2024.The repurchasefacility is not included below because

187、 there were no borrowings under it during the three months ended March 31,2024.The repurchase facility expires on June 14,2024,and may be extended by the mutual consent of the parties to the repurchase facility agreement.We have borrowed the full available amount under the termloan facility.The prin

188、cipal obligation under the term loan facility is required to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent perannum,with the balance due at the maturity of the facility.The average amount of debt outstanding under the term loan facility decreases slightly each quart

189、er dueto the requirement to repay a portion of the principal obligation.ABL facilityAccounts receivablesecuritization facilityTerm loan facilityBorrowing capacity,net of letters of credit$2,853$279$Letters of credit18 Interest rate at March 31,20246.5%6.3%7.1%Average month-end debt outstanding1,346

190、1,093 983 Weighted-average interest rate on average debt outstanding6.5%6.3%7.1%Maximum month-end debt outstanding1,457 1,132 1,000(2)Borrowings under the accounts receivable securitization facility are permitted only to the extent that the face amount of the receivables in the collateral pool,net o

191、fapplicable reserves and other deductions,exceeds the outstanding loans.As of March 31,2024,there were$1.348 billion of receivables,net of applicable reservesand other deductions,in the collateral pool.The accounts receivable securitization facility expires on June 24,2024 and may be extended on a 3

192、64-day basis bymutual agreement with the purchasers under the facility.(3)In February 2024,the term loan facility was amended,primarily to extend the maturity date to February 14,2031 and to increase the facility size to$1.000 billion(at the time of the amendment,the facility size was$948).(4)URNA s

193、eparately issued 4/percent Senior Notes in August 2017 and in September 2017.Following the issuances,URNA consummated an exchange offerpursuant to which most of the 4/percent Senior Notes issued in September 2017 were exchanged for additional notes fungible with the 4/percent Senior Notesissued in A

194、ugust 2017.As of March 31,2024,the total above is comprised of two separate 4/percent Senior Notes,one with a book value of$1.661 billion andone with a book value of$4.(5)In March 2024,URNA issued$1.100 billion aggregate principal amount of 6/percent Senior Notes(the“6/percent Notes”)which are due M

195、arch 15,2034.The6/percent Notes are unsecured and are guaranteed by Holdings and certain domestic subsidiaries of URNA.The 6/percent Notes may be redeemed on or afterMarch 15,2029,at specified redemption prices that range from 103.063 percent in 2029,to 100 percent in 2032 and thereafter,in each cas

196、e,plus accrued andunpaid interest,if any.At any time prior to March 15,2029,URNA may,at its option,redeem some or all of the 6/percent Notes at a redemption price equal to100 percent of the aggregate principal amount of the notes to be1278781478341878787878181818181822Table of ContentsUNITED RENTALS

197、,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)(Dollars in millions,except per share data,unless otherwise indicated)redeemed,plus a“make-whole”premium and accrued and unpaid interest,if any,to the redemption date.In addition,at any time on or prior to March 15,2027,up

198、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 redemptionprice equal to 106.125 percent of the aggregate principal amount of the notes plus accrued and unpaid interest,if any.The indenture governing t

199、he 6/percentNotes contains certain restrictive covenants,including,among others,limitations on(i)liens and(ii)mergers and consolidations,as well as a requirement to timelyfile periodic reports with the SEC.Each of the restrictive covenants is subject to important exceptions and qualifications that w

200、ould allow URNA and its subsidiariesto engage in these activities under certain conditions.In addition,the requirements to provide subsidiary guarantees and to make an offer to repurchase the notesupon the occurrence of a change of control will not apply to URNA and its restricted subsidiaries durin

201、g any period when the 6/percent Notes are ratedinvestment grade by both Standard&Poors Ratings Services and Moodys Investors Service,Inc.,or,in certain circumstances,another rating agency selected byURNA,provided at such time no default under the indenture has occurred and is continuing.The indentur

202、e also requires that,in the event of a change of control(asdefined 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 101percent of the principal amount thereof,plus accrued and unpaid interest,if any,thereo

203、n.(6)Short-term debt primarily reflects borrowings under the accounts receivable securitization and repurchase facilities and the short-term portion of our finance leases.Loan Covenants and ComplianceAs of March 31,2024,we were in compliance with the covenants and other provisions of the ABL,account

204、s receivable securitization,term loan and repurchasefacilities and our senior notes.Any failure to be in compliance with any material provision or covenant of these agreements could have a material adverse effect on ourliquidity and operations.The only financial covenant that currently exists under

205、the ABL facility is the fixed charge coverage ratio.Subject to certain limited exceptions specified in the ABLfacility,the fixed charge coverage ratio covenant under the ABL facility will only apply in the future if specified availability under the ABL facility falls below 10 percentof the maximum r

206、evolver amount under the ABL facility.When certain conditions are met,cash and cash equivalents and borrowing base collateral in excess of the ABLfacility size may be included when calculating specified availability under the ABL facility.As of March 31,2024,specified availability under the ABL faci

207、lity exceededthe required threshold and,as a result,this financial covenant was inapplicable.Under our accounts receivable securitization facility,we are required,among other things,to maintain certain financial tests relating to:(i)the default ratio,(ii)the delinquency ratio,(iii)the dilution ratio

208、 and(iv)days sales outstanding.The accounts receivablesecuritization facility also requires us to comply with the fixed charge coverage ratio under the ABL facility,to the extent the ratio is applicable under the ABL facility.Covenants in the agreements governing our ABL facility,term loan facility

209、and certain other debt instruments impose limitations on our ability to make sharerepurchases and dividend payments,subject to important exceptions that would allow us to make such repurchases or payments under certain conditions.Based on ourcurrent total indebtedness leverage ratio(as defined in th

210、e applicable debt agreements)and usage of the ABL facility as of March 31,2024,we met the criteria under theapplicable debt agreements for these exceptions,and as a result we were not restricted in our ability to make share repurchases and dividend payments.8.Legal and Regulatory MattersWe are subje

211、ct 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,employ

212、ee injuriesand employment-related claims,self-insurance obligations and contract and real estate matters.Based on advice of counsel and available information,including currentstatus or stage of proceeding,and taking into account accruals included in our consolidated balance sheets for matters where

213、we have established them,we currentlybelieve that any liabilities ultimately resulting from these ordinary course claims and proceedings will not,individually or in the aggregate,have a material adverse effecton our consolidated financial position,results of operations or cash flows.9.Earnings Per S

214、hareBasic 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

215、plus the effect ofdilutive potential common shares1818181823Table of ContentsUNITED RENTALS,INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)(Dollars in millions,except per share data,unless otherwise indicated)outstanding during the period.The following table sets forth

216、the computation of basic and diluted earnings per share(shares in thousands):Three Months Ended March 31,20242023Numerator:Net income available to common stockholders542 451 Denominator:Denominator for basic earnings per shareweighted-average common shares67,213 69,414 Effect of dilutive securities:

217、Employee stock options3 4 Restricted stock units201 327 Denominator for diluted earnings per shareadjusted weighted-average common shares67,417 69,745 Basic earnings per share$8.06$6.50 Diluted earnings per share$8.04$6.47 24Table of ContentsItem 2.Managements Discussion and Analysis of Financial Co

218、ndition and Results of Operations(dollars in millions,except per share data,unlessotherwise indicated)Global Economic ConditionsOur operations are impacted by global economic conditions,including inflation,increased interest rates and supply chain constraints,and we take actions to modifyour plans t

219、o address such economic conditions.In 2022,for example,we intentionally held back on sales of rental equipment to ensure we had sufficient rental capacityfor our customers.To date,our supply chain disruptions have been limited,but we may experience more severe supply chain disruptions in the future.

220、Interest rates on ourdebt instruments have increased recently.For example,in March 2024,URNA issued$1.1 billion aggregate principal amount of senior unsecured notes at a 6/percentinterest rate,while URNAs issuance in August 2021 of$750 aggregate principal amount of senior unsecured notes was at a 3

221、percent interest rate.Additionally,theweighted average interest rates on our variable debt instruments were 6.6 percent and 1.4 percent for the three months ended March 31,2024 and the year endedDecember 31,2021,respectively.We have experienced and are continuing to experience inflationary pressures

222、.A portion of inflationary cost increases is passed on tocustomers.The most significant cost increases that are passed on to customers are for fuel and delivery,and there are other costs for which the pass through to customersis less direct,such as repairs and maintenance,and labor.The impact of inf

223、lation and increased interest rates may continue to be significant in the future.We continue to assess the economic environment in which we operate and take appropriate actions to address the economic challenges we face.Executive OverviewWe are the largest equipment rental company in the world,with

224、an integrated network of 1,600 rental locations.We primarily operate in the United States andCanada,and have a limited presence in Europe,Australia and New Zealand.Although the equipment rental industry is highly fragmented and diverse,we believe that weare well positioned to take advantage of this

225、environment because,as a larger company,we have more extensive resources and certain competitive advantages.Theseinclude a fleet of rental equipment with a total original equipment cost(“OEC”)of$20.6 billion,and a North American branch network that operates in 49 U.S.states andevery Canadian provinc

226、e,and serves 99 of the 100 largest metropolitan areas in the U.S.Our size also gives us greater purchasing power,the ability to provide customerswith a broader range of equipment and services,the ability to provide customers with equipment that is more consistently well-maintained and therefore more

227、 productiveand reliable,and the ability to enhance the earning potential of our assets by transferring equipment among branches to satisfy customer needs.We offer approximately 4,800 classes of equipment for rent to a diverse customer base that includes construction and industrial companies,manufact

228、urers,utilities,municipalities,homeowners and government entities.Our revenues are derived from the following sources:equipment rentals,sales of rental equipment,sales of newequipment,contractor supplies sales and service and other revenues.Equipment rentals represented 84 percent of total revenues

229、for the three months ended March 31,2024.For the past several years,we have executed a strategy focused on improving the profitability of our core equipment rental business through revenue growth,margin expansion and operational efficiencies.In particular,we have focused on customer segmentation,cus

230、tomer service differentiation,rate management,fleetmanagement and operational efficiency.Our general strategy focuses on profitability and return on invested capital,and,in particular,calls for:A consistently superior standard of service to customers,often provided through a single lead contact who

231、can coordinate the cross-selling of the variousservices we offer throughout our network.We utilize a proprietary software application,Total Control,which provides our key customers with a single in-house software application that enables them to monitor and manage all their equipment needs.Total Con

232、trol is a unique customer offering that enables us todevelop strong,long-term relationships with our larger customers.Our digital capabilities,including our Total Control platform,allow our sales teams toprovide contactless end-to-end customer service;The further optimization of our customer mix and

233、 fleet mix,with a dual objective:to enhance our performance in serving our current customer base,and tofocus on the accounts and customer types that are best suited to our strategy for profitable growth.We believe these efforts will lead to even better service ofour target accounts,primarily large c

234、onstruction and industrial customers,as well as select local contractors.Our fleet teams analyses are aligned with theseobjectives to identify trends in equipment categories and define action plans that can generate improved returns;A continued focus on“Lean”management techniques,including kaizen pr

235、ocesses focused on continuous improvement.We have a dedicated teamresponsible for reducing waste in our operational processes,with the objectives of:condensing the cycle time associated with preparing equipment for rent;optimizing our resources for1825Table of Contentsdelivery and pickup of equipmen

236、t;improving the effectiveness and efficiency of our repair and maintenance operations;and implementing customer servicebest practices;The continued expansion and cross-selling of adjacent specialty and services products,which enables us to provide a one-stop shop for our customers.We believe that th

237、e expansion of our specialty business,as exhibited by our acquisition of Yak in March 2024,which is discussed in note 3 to our condensedconsolidated financial statements,as well as our tools and onsite services offerings,will further position United Rentals as a single source provider of totaljobsit

238、e solutions through our extensive product and service resources and technology offerings;andThe pursuit of strategic acquisitions to continue to expand our core equipment rental business,as exhibited by our acquisition of assets of Ahern Rentals,Inc.(Ahern Rentals)in December 2022.Strategic acquisit

239、ions allow us to invest our capital to expand our business,further driving our ability to accomplishour strategic goals.Financial OverviewPrior to taking actions pertaining to our financial flexibility and liquidity,we assess our available sources and anticipated uses of cash,including,with respect

240、tosources,cash generated from operations and from the sale of rental equipment.In 2024,we have taken the following actions to improve our financial flexibility andliquidity,and to position us to invest the necessary capital in our business:Issued$1.1 billion aggregate principal amount of 6/percent S

241、enior Notes due 2034.The issued debt,together with drawings on our ABL facility,was usedto fund the Yak acquisition that is discussed in note 3 to the condensed consolidated financial statements;andAmended our term loan facility,primarily to extend the maturity date to February 2031 and to increase

242、the facility size to$1.0 billion.As of March 31,2024,we had available liquidity of$3.561 billion,comprised of cash and cash equivalents,and availability under the ABL and accounts receivablesecuritization facilities.In October 2022,our Board of Directors authorized a$1.25 billion share repurchase pr

243、ogram,which was completed in the first quarter of 2024.In January 2024,our Board of Directors authorized a$1.5 billion share repurchase program,and repurchases under this program began in March 2024,following the completion of the$1.25 billion program.We have repurchased$125 under the$1.5 billion pr

244、ogram through March 31,2024,and intend to repurchase a total of$1.25 billion under theprogram in 2024 and then complete the program by the end of the first quarter of 2025.A 1 percent excise tax is imposed on“net repurchases”(certain purchases minuscertain issuances)of common stock.The repurchases a

245、bove(as well as the total program sizes and expected 2024 repurchases)do not include the excise tax,whichtotaled$3 year-to-date through March 31,2024.Our Board of Directors also approved our first-ever quarterly dividend program in January 2023,and the first dividend under the program was paid in Fe

246、bruary2023.During the three months ended March 31,2024 and 2023,we paid dividends totaling$110($1.63 per share)and$103($1.48 per share),respectively.On April 24,2024,our Board of Directors declared a quarterly dividend of$1.63 per share,payable on May 22,2024 to stockholders of record on May 8,2024.

247、Net income.Net income and diluted earnings per share are presented below.Three Months Ended March 31,20242023Net income$542$451 Diluted earnings per share$8.04$6.47 Net income and diluted earnings per share include the after-tax impacts of the items below.The tax rates applied to the items below ref

248、lect the statutory rates in theapplicable entities.1826Table of Contents Three Months Ended March 31,20242023Tax rate applied to items below25.2%25.3%Contributionto net income(after-tax)Impact ondilutedearningsper shareContributionto net income(after-tax)Impact ondiluted earningsper shareMerger rela

249、ted intangible asset amortization(1)$(33)$(0.49)$(49)$(0.70)Impact on depreciation related to acquired fleet and property and equipment(2)(27)(0.40)(22)(0.32)Impact of the fair value mark-up of acquired fleet(3)(13)(0.19)(31)(0.44)Restructuring charge(4)(1)(0.01)(1)(0.02)Asset impairment charge(5)(0

250、.01)Loss on repurchase/redemption/amendment of debt securities(1)(0.01)(1)This reflects the amortization of the intangible assets acquired in the major acquisitions that significantly impact our operations(the major acquisitions,each ofwhich had annual revenues of over$200 prior to acquisition).The

251、decrease in 2024 primarily reflects the impact of reduced amortization associated with theDecember 2022 acquisition of Ahern Rentals.(2)This reflects the impact of extending the useful lives of equipment acquired in certain major acquisitions,net of the impact of additional depreciation associated w

252、iththe fair value mark-up of such equipment.(3)This reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment acquired in certain majoracquisitions that was subsequently sold.The decrease in 2024 primarily reflects decreased sales

253、 of rental equipment acquired in the Ahern Rentals acquisition.(4)This primarily reflects severance and branch closure charges associated with our restructuring programs.For additional information on the restructuring charges,which generally involve the closure of a large number of branches over a s

254、hort period of time,often in periods following a major acquisition,see ManagementsDiscussion and Analysis of Financial Condition and Results of Operations-Results of Operations-Other costs/(income)-restructuring charges below.(5)This reflects write-offs of leasehold improvements and other fixed asse

255、ts.EBITDA GAAP Reconciliations.EBITDA represents the sum of net income,provision for income taxes,interest expense,net,depreciation of rental equipment andnon-rental depreciation and amortization.Adjusted EBITDA represents EBITDA plus the sum of the restructuring charges,stock compensation expense,n

256、et and theimpact of the fair value mark-up of the acquired fleet.See below for further detail on each adjusting item.These items are excluded from adjusted EBITDA internallywhen evaluating our operating performance and for strategic planning and forecasting purposes,and allow investors to make a mor

257、e meaningful comparison between ourcore business operating results over different periods of time,as well as with those of other similar companies.The net income and adjusted EBITDA margins representnet income or adjusted EBITDA divided by total revenue.Management believes that EBITDA and adjusted E

258、BITDA,when viewed with the Companys results underGAAP and the accompanying reconciliations,provide useful information about operating performance and period-over-period growth,and provide additional informationthat is useful for evaluating the operating performance of our core business without regar

259、d to potential distortions.Additionally,management believes that EBITDA andadjusted EBITDA help investors gain an understanding of the factors and trends affecting our ongoing cash earnings,from which capital investments are made and debt isserviced.However,EBITDA and adjusted EBITDA are not measure

260、s of financial performance or liquidity under GAAP and,accordingly,should not be considered asalternatives to net income or cash flow from operating activities as indicators of operating performance or liquidity.The table below provides a reconciliation between net income and EBITDA and adjusted EBI

261、TDA:27Table of ContentsThree Months Ended March 31,20242023Net income$542$451 Provision for income taxes153 143 Interest expense,net160 150 Depreciation of rental equipment582 575 Non-rental depreciation and amortization104 118 EBITDA$1,541$1,437 Restructuring charge(1)1 1 Stock compensation expense

262、,net(2)28 24 Impact of the fair value mark-up of acquired fleet(3)17 41 Adjusted EBITDA$1,587$1,503 Net income margin15.6%13.7%Adjusted EBITDA margin45.5%45.8%The table below provides a reconciliation between net cash provided by operating activities and EBITDA and adjusted EBITDA:Three Months Ended

263、 March 31,20242023Net cash provided by operating activities$1,029$939 Adjustments for items included in net cash provided by operating activities but excluded from the calculation of EBITDA:Amortization of deferred financing costs and original issue discounts(4)(4)Gain on sales of rental equipment18

264、7 190 Gain on sales of non-rental equipment3 4 Insurance proceeds from damaged equipment13 9 Restructuring charge(1)(1)(1)Stock compensation expense,net(2)(28)(24)Loss on repurchase/redemption/amendment of debt securities(1)Changes in assets and liabilities17 117 Cash paid for interest195 178 Cash p

265、aid for income taxes,net131 29 EBITDA$1,541$1,437 Add back:Restructuring charge(1)1 1 Stock compensation expense,net(2)28 24 Impact of the fair value mark-up of acquired fleet(3)17 41 Adjusted EBITDA$1,587$1,503 _(1)This primarily reflects severance and branch closure charges associated with our res

266、tructuring programs.For additional information on the restructuring charges,which generally involve the closure of a large number of branches over a short period of time,often in periods following a major acquisition,see ManagementsDiscussion and Analysis of Financial Condition and Results of Operat

267、ions-Results of Operations-Other costs/(income)-restructuring charges below.(2)Represents non-cash,share-based payments associated with the granting of equity instruments.(3)This reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equ

268、ipment acquired in certain majoracquisitions that was subsequently sold.The decrease in 2024 primarily reflects decreased sales of rental equipment acquired in the Ahern Rentals acquisition.28Table of ContentsFor the three months ended March 31,2024,net income increased$91,or 20.2 percent,and net in

269、come margin increased 190 basis points to 15.6 percent.For thethree months ended March 31,2024,adjusted EBITDA increased$84,or 5.6 percent,and adjusted EBITDA margin decreased 30 basis points to 45.5 percent.The year-over-year increase in net income margin primarily reflects higher gross margin from

270、 equipment rentals,and reductions in selling,general andadministrative(SG&A)and non-rental depreciation and amortization expenses as a percentage of revenue.Equipment rentals gross margin increased 110 basis pointsfrom 2023,primarily due to decreased depreciation expense as a percentage of revenue.T

271、he favorable margin impact of SG&A expense primarily reflects decreases incertain discretionary expenses,including travel and entertainment,while the margin impact of non-rental depreciation and amortization expense includes decreasedamortization expense associated with the Ahern Rentals acquisition

272、.The year-over-year decrease in adjusted EBITDA margin primarily reflects a 620 basis point decrease in gross margin from sales of rental equipment(excluding theadjustment reflected in the table above for the impact of the fair value mark-up of acquired fleet),partially offset by reduced SG&A expens

273、e as a percentage of revenue.The decreased gross margin from sales of rental equipment(excluding the adjustment for the impact of the fair value mark-up of acquired fleet)primarily reflects thecontinued normalization of used equipment pricing.The favorable margin impact of SG&A expense primarily ref

274、lects decreases in certain discretionary expenses,including travel and entertainment.Revenues are noted below.Fleet productivity is a comprehensive metric that provides greater insight into the decisions made by our managers in support ofequipment rental growth and returns.Specifically,we seek to op

275、timize the interplay of rental rates,time utilization and mix to drive rental revenue.Fleet productivityaggregates,in one metric,the impact of changes in rates,utilization and mix on owned equipment rental revenue.We believe that this metric is useful in assessing theeffectiveness of our decisions o

276、n rates,time utilization and mix,particularly as they support the creation of shareholder value.The table below includes the components ofthe year-over-year change in rental revenue using the fleet productivity methodology.Three Months Ended March 31,20242023ChangeEquipment rentals*$2,929$2,740 6.9%

277、Sales of rental equipment383 388(1.3)%Sales of new equipment48 44 9.1%Contractor supplies sales36 34 5.9%Service and other revenues89 79 12.7%Total revenues$3,485$3,285 6.1%*Equipment rentals variance components:Year-over-year change in average OEC3.6%Assumed year-over-year inflation impact(1)(1.5)%

278、Fleet productivity(2)4.0%Contribution from ancillary and re-rent revenue(3)0.8%Total change in equipment rentals6.9%_(1)Reflects the estimated impact of inflation on the revenue productivity of fleet based on OEC,which is recorded at cost.(2)Reflects the combined impact of changes in rental rates,ti

279、me utilization,and mix that contribute to the variance in owned equipment rental revenue.See note 2 tothe condensed consolidated financial statements for a discussion of the different types of equipment rentals revenue.Rental rate changes are calculated based on theyear-over-year variance in average

280、 contract rates,weighted by the prior period revenue mix.Time utilization is calculated by dividing the amount of time an asset ison rent by the amount of time the asset has been owned during the year.Mix includes the impact of changes in customer,fleet,geographic and segment mix.(3)Reflects the com

281、bined impact of changes in the other types of equipment rentals revenue(see note 2 for further detail),excluding owned equipment rental revenue.Equipment rentals include our revenues from renting equipment,as well as revenue related to the fees we charge customers:for equipment delivery and pick-up;

282、toprotect the customer against liability for damage to our equipment while on rent;for fuel;and for environmental and other miscellaneous costs and services.Sales ofrental equipment represent our revenues from the sale of used rental equipment.Sales of new equipment represent our revenues from the s

283、ale of new29Table of Contentsequipment.Contractor supplies sales represent our sales of supplies utilized by contractors,which include construction consumables,tools,small equipment and safetysupplies.Services and other revenues primarily represent our revenues earned from providing repair and maint

284、enance services on our customers fleet(including partssales).See note 2 to the condensed consolidated financial statements for a discussion of our revenue recognition accounting.For the three months ended March 31,2024,total revenues of$3.485 billion increased 6.1 percent compared with 2023.Equipmen

285、t rentals and sales of rentalequipment are our largest revenue types(together,they accounted for 95 percent of total revenue for the three months ended March 31,2024).Equipment rentalsincreased$189,or 6.9 percent,primarily due to a 4.0 percent increase in fleet productivity,which reflects broad-base

286、d strength of demand across our end-markets,and a3.6 percent increase in average OEC.Sales of rental equipment did not change significantly year-over-year.Results of OperationsAs discussed in note 4 to our condensed consolidated financial statements,our reportable segments are general rentals and sp

287、ecialty.The general rentals segmentincludes the rental of construction,aerial,industrial and homeowner equipment and related services and activities.The general rentals segments customers includeconstruction and industrial companies,manufacturers,utilities,municipalities,homeowners and government en

288、tities.This segment operates throughout the United Statesand Canada.The specialty segment rents products(and provides setup and other services on such rented equipment)including i)trench safety equipment,such as trenchshields,aluminum hydraulic shoring systems,slide rails,crossing plates,constructio

289、n lasers and line testing equipment for underground work,ii)power and HVACequipment,such as portable diesel generators,electrical distribution equipment,and temperature control equipment,iii)fluid solutions equipment primarily used for fluidcontainment,transfer and treatment,iv)mobile storage equipm

290、ent and modular office space and v)surface protection mats.The specialty segments customers includeconstruction companies involved in infrastructure projects,municipalities and industrial companies.This segment primarily operates in the United States and Canada,andhas a limited presence in Europe,Au

291、stralia and New Zealand.As discussed in note 4 to our condensed consolidated financial statements,we aggregate our four geographic divisionsCentral,Northeast,Southeast and Westinto our general rentals reporting segment.Historically,there have occasionally been variances in the levels of equipment re

292、ntals gross margins achieved by thesedivisions,though such variances have generally been small(close to or less than 10 percent,measured versus the equipment rentals gross margins of the aggregatedgeneral rentals divisions).For the five year period ended March 31,2024,there was no general rentals di

293、vision with an equipment rentals gross margin that differedmaterially from the equipment rentals gross margin of the aggregated general rentals divisions.The rental industry is cyclical,and there historically have occasionallybeen divisions with equipment rentals gross margins that varied by greater

294、 than 10 percent from the equipment rentals gross margins of the aggregated general rentalsdivisions,though the specific divisions with margin variances of over 10 percent have fluctuated,and such variances have generally not exceeded 10 percent by asignificant amount.We monitor the margin variances

295、 and confirm margin similarity between divisions on a quarterly basis.We believe that the divisions that are aggregated into our segments have similar economic characteristics,as each division is capital intensive,offers similarproducts to similar customers,uses similar methods to distribute its pro

296、ducts,and is subject to similar competitive risks.The aggregation of our divisions also reflects themanagement structure that we use for making operating decisions and assessing performance.Although we believe aggregating these divisions into our reportingsegments for segment reporting purposes is a

297、ppropriate,to the extent that there are significant margin variances that do not converge,we may be required to disaggregatethe divisions into separate reporting segments.Any such disaggregation would have no impact on our consolidated results of operations.These reporting segments align our externa

298、l segment reporting with how management evaluates business performance and allocates resources.We evaluate segmentperformance primarily based on segment equipment rentals gross profit.Our revenues,operating results,and financial condition fluctuate from quarter to quarterreflecting the seasonal rent

299、al patterns of our customers,with rental activity tending to be lower in the winter.Revenues by segment were as follows:30Table of ContentsGeneralrentalsSpecialtyTotalThree Months Ended March 31,2024Equipment rentals$2,070$859$2,929 Sales of rental equipment346 37 383 Sales of new equipment29 19 48

300、Contractor supplies sales20 16 36 Service and other revenues81 8 89 Total revenue$2,546$939$3,485 Three Months Ended March 31,2023Equipment rentals$2,018$722$2,740 Sales of rental equipment350 38 388 Sales of new equipment18 26 44 Contractor supplies sales21 13 34 Service and other revenues72 7 79 T

301、otal revenue$2,479$806$3,285 Equipment rentals represented 84 percent of total revenues for the three months ended March 31,2024.For the three months ended March 31,2024,equipmentrentals of$2.929 billion increased$189,or 6.9 percent,as compared to the same period in 2023,primarily due to a 4.0 perce

302、nt increase in fleet productivity,whichreflects broad-based strength of demand across our end-markets,and a 3.6 percent increase in average OEC.For the three months ended March 31,2024,equipment rentals represented 81 percent of total revenues for the general rentals segment.For the three months end

303、edMarch 31,2024,general rentals equipment rentals increased$52,or 2.6 percent,as compared to the same period in 2023,primarily reflecting broad-based strength ofdemand across our end-markets.For the three months ended March 31,2024,equipment rentals represented 91 percent of total revenues for the s

304、pecialty segment.For the three months endedMarch 31,2024,specialty equipment rentals increased$137,or 19.0 percent,as compared to the same period in 2023,primarily due to strong demand across our end-markets and increased average OEC.Sales of rental equipment.For the three months ended March 31,2024

305、,sales of rental equipment represented approximately 11 percent of our total revenues.Forthe three months ended March 31,2024,sales of rental equipment did not change significantly year-over-year.Sales of new equipment.For the three months ended March 31,2024,sales of new equipment represented appro

306、ximately 1 percent of our total revenues.For thethree months ended March 31,2024,sales of new equipment did not change significantly year-over-year.Contractor supplies sales represent our revenues associated with selling a variety of supplies,including construction consumables,tools,small equipment

307、andsafety supplies.For the three months ended March 31,2024,contractor supplies sales represented approximately 1 percent of our total revenues.For the three monthsended March 31,2024,contractor supplies sales did not change significantly year-over-year.Service and other revenues primarily represent

308、 our revenues earned from providing repair and maintenance services on our customers fleet(including parts sales).For the three months ended March 31,2024,service and other revenues represented approximately 3 percent of our total revenues.For the three months ended March 31,2024,service and other r

309、evenues did not change significantly year-over-year.Segment Equipment Rentals Gross ProfitSegment equipment rentals gross profit and gross margin were as follows:31Table of ContentsGeneralrentalsSpecialtyTotalThree Months Ended March 31,2024Equipment Rentals Gross Profit$681$422$1,103 Equipment Rent

310、als Gross Margin32.9%49.1%37.7%Three Months Ended March 31,2023Equipment Rentals Gross Profit$663$340$1,003 Equipment Rentals Gross Margin32.9%47.1%36.6%General rentals.For the three months ended March 31,2024,equipment rentals gross profit increased by$18,and equipment rentals gross margin was flat

311、,year-over-year.Specialty.For the three months ended March 31,2024,equipment rentals gross profit increased by$82,and equipment rentals gross margin increased by 200 basispoints,year-over-year.Gross margin increased primarily due to better cost performance and fixed cost absorption on higher revenue

312、.Gross Margin.Gross margins by revenue classification were as follows:Three Months Ended March 31,20242023ChangeTotal gross margin38.6%37.8%80 bpsEquipment rentals37.7%36.6%110 bpsSales of rental equipment48.8%49.0%(20)bpsSales of new equipment20.8%18.2%260 bpsContractor supplies sales30.6%29.4%120

313、bpsService and other revenues39.3%38.0%130 bpsFor the three months ended March 31,2024,total gross margin increased 80 basis points from the same period in 2023.Equipment rentals gross margin increased110 basis points from 2023,primarily due to decreased depreciation expense as a percentage of reven

314、ue.Gross margin from sales of rental equipment did not changesignificantly from the same period in 2023.The gross margin fluctuations from sales of new equipment,contractor supplies sales and service and other revenues generallyreflect normal variability,and such revenue types did not account for a

315、significant portion of total gross profit(gross profit for these revenue types represented 4 percentof total gross profit for the three months ended March 31,2024).Other costs/(income)The table below includes the other costs/(income)in our condensed consolidated statements of income,as well as key a

316、ssociated metrics:Three Months Ended March 31,20242023ChangeSelling,general and administrative(SG&A)expense$389$3821.8%SG&A expense as a percentage of revenue11.2%11.6%(40)bpsRestructuring charge11%Non-rental depreciation and amortization104118(11.9)%Interest expense,net1601506.7%Other income,net(3)

317、(4)(25.0)%Provision for income taxes1531437.0%Effective tax rate22.0%24.1%(210)bpsSG&A expense primarily includes sales force compensation,information technology costs,third party professional fees,management salaries,bad debt expenseand clerical and administrative overhead.SG&A expense as a percent

318、age of revenue for the three months ended March 31,2024 decreased from the same period in 2023primarily due to decreases in certain discretionary expenses,including travel and entertainment.The restructuring charges primarily reflect severance and branch closure charges associated with our restructu

319、ring programs.We incur severance costs and branchclosure charges in the ordinary course of our business.We only include such32Table of Contentscosts that are part of a restructuring program as restructuring charges.The designated restructuring programs generally involve the closure of a large number

320、 of branchesover a short period of time,often in periods following a major acquisition,and result in significant costs that we would not normally incur absent a major acquisition orother triggering event that results in the initiation of a restructuring program.Since the first such program was initi

321、ated in 2008,we have completed seven restructuringprograms and have incurred total restructuring charges of$381.We currently have no open restructuring programs,and the total liability associated with our restructuringprograms was$20 as of March 31,2024.Non-rental depreciation and amortization inclu

322、des i)the amortization of other intangible assets and ii)depreciation expense associated with equipment that is notoffered for rent(such as computers and office equipment)and amortization expense associated with leasehold improvements.Our other intangible assets consist ofcustomer relationships,non-

323、compete agreements and trade names and associated trademarks.The year-over-year decrease in non-rental depreciation and amortization forthe three months ended March 31,2024 primarily reflected a reduction in amortization expense associated with the Ahern Rentals acquisition.Interest expense,net for

324、the three months ended March 31,2024 increased 6.7 percent year-over-year,primarily reflecting increased average debt,including thedebt issued to partially fund the Yak acquisition discussed above,and higher variable debt interest rates.The weighted average interest rates on our variable debtinstrum

325、ents were 6.6 percent and 5.9 percent for the three months ended March 31,2024 and 2023,respectively.Other(income)expense,net primarily includes i)currency gains and losses,ii)finance charges,iii)gains and losses on sales of non-rental equipment and iv)othermiscellaneous items.The effective tax rate

326、s for 2024 and 2023 differed from the federal statutory rate of 21 percent primarily due to the geographical mix of income between foreignand domestic operations,the impact of state and local taxes,stock compensation,and other deductible and nondeductible charges.The year-over-year decrease in theef

327、fective tax rate for the three months ended March 31,2024 primarily reflected decreased average state tax rates.Balance sheet.Goodwill increased by$923,or 15.5 percent,from December 31,2023 to March 31,2024,primarily due to the impact of the Yak acquisition,asdiscussed in note 3 to the condensed con

328、solidated financial statements.See the condensed consolidated statements of cash flows for further information on changes incash and cash equivalents,the condensed consolidated statements of stockholders equity for further information on changes in stockholders equity and note 7 to thecondensed cons

329、olidated financial statements for further information on debt changes.33Table of ContentsLiquidity and Capital ResourcesWe manage our liquidity using internal cash management practices,which are subject to(i)the policies and cooperation of the financial institutions we utilize tomaintain and provide

330、 cash management services,(ii)the terms and other requirements of the agreements to which we are a party and(iii)the statutes,regulations andpractices of each of the local jurisdictions in which we operate.In October 2022,our Board of Directors authorized a$1.25 billion share repurchase program,whic

331、h was completed in the first quarter of 2024.In January 2024,our Board of Directors authorized a$1.5 billion share repurchase program,and repurchases under this program began in March 2024,following the completion of the$1.25 billion program.We have repurchased$125 under the$1.5 billion program thro

332、ugh March 31,2024,and intend to repurchase a total of$1.25 billion under theprogram in 2024 and then complete the program by the end of the first quarter of 2025.A 1 percent excise tax is imposed on“net repurchases”(certain purchases minuscertain issuances)of common stock.The repurchases above(as we

333、ll as the total program sizes and expected 2024 repurchases)do not include the excise tax,whichtotaled$3 year-to-date through March 31,2024.Since 2012,we have repurchased a total of$6.343 billion(inclusive of immaterial excise taxes,which were first imposedin 2023)of Holdings common stock under our share repurchase programs(comprised of eight programs that have ended and the current program).Our B