Driving Digital Transformation and Shareholder Value
Adjusted Earnings Per Share GAAP Reconciliation
We define "earnings per share - adjusted" as the sum of earnings per share - · GAAP, as-reported plus the impact of the following special items: merger related costs, merger related intangible asset amortization,
impact on depreciation related to acquired fleet and property and equipment, impact of the fair value mark-up of acquired fleet, restructuring charge and asset impairment charge. Management believes that earnings
per share adjusted provides useful information concerning future profitability. However, earnings per share - adjusted is not a measure of financial performance under GAAP. Accordingly, earnings per share -
adjusted should not be considered an alternative to GAAP earnings per share. The table below provides a reconciliation between earnings per share – GAAP, as-reported, and earnings per share - adjusted.
-
$ Millions
Earnings per share - GAAP, as-reported
After-tax impact of:
Merger related costs (2)
Merger related intangible asset amortization (3)
Impact on depreciation related to acquired fleet and property and equipment (4)
Impact of the fair value mark-up of acquired fleet (5)
Restructuring charge (6)
Asset impairment charge (7)
Earnings per share - adjusted
Tax rate applied to above adjustments (1)
Three Months Ended
March 31,
2020
2019
$ 2.33
$ 2.19
0.01
0.59
0.64
0.03
0.14
0.12
0.25
0.02
0.07
0.26
0.01
$
3.35
$
3.31
25.2%
25.4%
ea
(1)
The tax rates applied to the adjustments reflect the statutory rates in the applicable entities.
(2)
(3)
(4)
(5)
Reflects transaction costs associated with the BakerCorp International Holdings, Inc. ("BakerCorp") and Blue Line acquisitions that
were completed in 2018. We have made a number of acquisitions in the past and may continue to make acquisitions in the future.
Merger related costs only include costs associated with major acquisitions that significantly impact our operations. The acquisitions
that have included merger related costs are RSC, which had annual revenues of approximately $1.5 billion prior to the acquisition, (6)
National Pump, which had annual revenues of over $200 million prior to the acquisition, NES, which had annual revenues of
approximately $369 million prior to the acquisition, Neff, which had annual revenues of approximately $413 million prior to the
acquisition, BakerCorp, which had annual revenues of approximately $295 million prior to the acquisition and Blue Line, which had
annual revenues of approximately $786 million prior to the acquisition.
Reflects the amortization of the intangible assets acquired in the RSC, National Pump, NES, Neff, BakerCorp and BlueLine
acquisitions.
United Rentals®
(7)
Reflects the impact of extending the useful lives of equipment acquired in the RSC, NES, Neff, BakerCorp and BlueLine
acquisitions, net of the impact of additional depreciation associated with the fair value mark-up of such equipment.
Reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment
acquired in the RSC, NES, Neff and BlueLine acquisitions and subsequently sold.
Primarily reflects severance and branch closure charges associated with our closed restructuring programs and our current
restructuring program. We only include such costs that are part of a restructuring program as restructuring charges. Since the first
such restructuring program was initiated in 2008, we have completed five restructuring programs. We have cumulatively incurred
total restructuring charges of $335 million under our restructuring programs.
Reflects write-offs of leasehold improvements and other fixed assets. 2020 includes a $26 million asset impairment charge, which
was not related to COVID-19, primarily associated with the discontinuation of certain equipment programs.
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2020 United Rentals, Inc. All rights reserved.
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