REVENUE EARNING EQUIPMENT, NET (Tables)

9 Months Ended

Sep. 30, 2023

Revenue Earning Equipment [Abstract]


	Estimated Useful Lives (In Years)	September 30, 2023						December 31, 2022
(Dollars in millions)		Cost		Accumulated Depreciation		Net		Cost		Accumulated Depreciation		Net

Held for use:
Trucks	3 — 7	$	5,563	$	(2,168)	$	3,395	$	5,282	$	(2,114)	$	3,168
Tractors	4 — 7.5	7,133		(2,819)		4,314		7,153		(3,153)		4,000
Trailers and other	9.5 — 12	1,689		(685)		1,004		1,610		(690)		920
Held for sale (1)		723		(561)		162		388		(286)		102
Total		$	15,108	$	(6,233)	$	8,875	$	14,433	$	(6,243)	$	8,190

————————————

(1)Revenue earning equipment held for sale, where net book values exceed fair values, are adjusted to fair value on a nonrecurring basis and these adjustments are considered Level 3 fair value measurements. The fair value of revenue earning equipment held for sale adjusted with Level 3 fair value measurements was $13 million and $3 million as of September 30, 2023 and December 31, 2022, respectively. The net book value of all other assets held for sale were below fair value.

Schedule of Gain and Losses Revenue Earning Equipment

The components of "Used vehicle sales, net" were as follows:


	Three months ended September 30,				Nine months ended September 30,
(In millions)	2023		2022		2023		2022

Gains on used vehicle sales, net (1)	$	(52)	$	(116)	$	(183)	$	(362)
Losses from valuation adjustments	5		3		9		6
Used vehicle sales, net	$	(47)	$	(113)	$	(174)	$	(356)

————————————

(1)Includes gains on used vehicles sold as part of the exit of the FMS U.K business of $2 million, for the nine months ended September 30, 2023, and $15 million and $43 million, for the three and nine months ended September 30, 2022, respectively.