Investor Presentaiton
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, asset impairment charge and loss on repurchase/redemption of debt securities and
amendment of ABL facility. 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)
Three Months Ended
December 31,
Year Ended
December 31,
2019
2018
2019
2018
$
4.49
$ 3.80
$ 15.11 $ 13.12
0.21
0.01
0.32
Merger related intangible asset amortization (3)
0.60
0.58
2.48
1.76
Impact on depreciation related to acquired fleet and property and equipment (4)
Impact of the fair value mark-up of acquired fleet (5)
0.05
0.39
0.19
0.16
0.11
0.72
0.59
Restructuring charge (6)
0.03
0.15
0.18
0.28
Asset impairment charge (7)
(0.01)
0.05
Loss on repurchase/redemption of debt securities and amendment of ABL facility
Earnings per share - adjusted
0.28
0.58
$
Tax rate applied to above adjustments (1)
5.60 $ 4.85
25.1%
25.7%
$ 19.52 $
25.3%
16.26
25.5%
อล
(1)
(2)
(3)
The tax rates applied to the adjustments reflect the statutory rates in the applicable entities.
Reflects transaction costs associated with the BakerCorp and BlueLine acquisitions discussed above. 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 historic acquisitions that have included merger related costs are RSC, which had
annual revenues of approximately $1.5 billion prior to the acquisition, and National Pump, which had annual revenues of over $200 million
prior to the acquisition. NES had annual revenues of approximately $369 million, Neff had annual revenues of approximately $413 million,
BakerCorp had annual revenues of approximately $295 million and BlueLine had annual revenues of approximately $786 million.
Reflects the amortization of the intangible assets acquired in the RSC, National Pump, NES, Neff, BakerCorp and BlueLine acquisitions.
United Rentals®
(4)
(5)
(6)
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 four restructuring programs. We have cumulatively
incurred total restructuring charges of $333 million under our restructuring programs.
(7)
Reflects write-offs of leasehold improvements and other fixed assets.
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2020 United Rentals, Inc. All rights reserved.
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