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SEGMENT REPORTING | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING Our primary measurement of segment financial performance, defined as segment "Earnings from continuing operations before income taxes" (Segment EBT), includes an allocation of costs from Central Support Services (CSS) and excludes Non-operating pension costs, net, intangible amortization expense, and certain other significant items that are not representative of our business operations and vary from period to period. The objective of the Segment EBT measurement is to provide clarity on the profitability of each business segment and, ultimately, to hold leadership of each business segment accountable for their allocated share of CSS costs. CSS represents those costs incurred to support all business segments, including information technology, finance, marketing, human resources, legal, and safety. These costs are allocated based on various methods, including resource utilization, personnel supported and utilization-related metrics. Certain costs are not attributable to any segment and remain unallocated in CSS, including costs for investor relations, public affairs and certain executive compensation. Segment results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. Our FMS segment leases revenue earning equipment and provides fuel, maintenance and other ancillary services to the SCS and DTS segments. Inter-Segment EBT allocated to SCS and DTS includes earnings related to equipment used to provide services to SCS and DTS customers. Segment EBT related to inter-segment equipment and services billed to SCS and DTS customers (Equipment Contribution) are included in both FMS and the segment that served the customer and then eliminated upon consolidation (presented as “Eliminations”). The following table sets forth financial information regularly provided and reviewed by our Chair and Chief Executive Officer (our Chief Operating Decision Maker), to analyze financial performance, make strategic decisions and allocate resources. The table also provides a reconciliation between Segment EBT and Earnings from continuing operations before income taxes (in millions):
Three months ended March 31, 2025 |  | FMS |  | SCS |  | DTS |  | Elimination (1) |  | Total
Revenue |  | $ | 1,447 |  |  | $ | 1,331 |  |  | $ | 602 |  |  | (249) |  |  | $ | 3,131 |
Direct operating costs |  | 1,154 |  |  | 1,182 |  |  | 565 |  |  |  |  |
Used vehicle sales, net |  | (9) |  |  | — |  |  | — |  |  |  |  |
Other segment items (2) |  | 208 |  |  | 62 |  |  | 10 |  |  |  |  |
Segment EBT |  | $ | 94 |  |  | $ | 87 |  |  | $ | 27 |  |  | (33) |  |  | 175 |
Unallocated Central Support Services |  |  |  |  |  |  |  |  |  | (20) |
Intangible amortization expense (3) |  |  |  |  |  |  |  |  |  | (13) |
Non-operating pension costs, net (4) |  |  |  |  |  |  |  |  |  | (9) |
Other items impacting comparability, net |  |  |  |  |  |  |  |  |  | 1 |
Earnings from continuing operations before income taxes |  |  |  |  |  |  |  |  |  | $ | 134 |
Three months ended March 31, 2024 |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 1,455 |  |  | $ | 1,302 |  |  | $ | 563 |  |  | (222) |  |  | $ | 3,098 |
Direct operating costs |  | 1,171 |  |  | 1,175 |  |  | 524 |  |  |  |  |
Used vehicle sales, net |  | (20) |  |  | — |  |  | — |  |  |  |  |
Other segment items (2) |  | 204 |  |  | 63 |  |  | 21 |  |  |  |  |
Segment EBT |  | $ | 100 |  |  | $ | 64 |  |  | $ | 18 |  |  | (28) |  |  | 154 |
Unallocated Central Support Services |  |  |  |  |  |  |  |  |  | (14) |
Intangible amortization expense (3) |  |  |  |  |  |  |  |  |  | (11) |
Non-operating pension costs, net (4) |  |  |  |  |  |  |  |  |  | (11) |
Other items impacting comparability, net |  |  |  |  |  |  |  |  |  | (4) |
Earnings from continuing operations before income taxes |  |  |  |  |  |  |  |  |  | $ | 114 |
_______________ (1)Represents the intercompany revenues in our FMS business segment and Inter-Segment EBT. (2)Other segment items for each reportable segment include indirect costs and also include Equipment Contribution for SCS and DTS. (3)Included within "Selling, general and administrative expenses" in our Condensed Consolidated Statements of Earnings. (4)Refer to Note 14, "Employee Benefit Plans," for further discussion. The following tables sets forth additional segment items for the periods presented (in millions):
|  | Depreciation expense (1) |  | Other non-cash charges, net (2)
Three months ended March 31, |  | 2025 |  | 2024 |  | 2025 |  | 2024
FMS |  | $ | 396 |  |  | $ | 397 |  |  | $ | 47 |  |  | $ | 35 |
SCS |  | 27 |  |  | 26 |  |  | 70 |  |  | 65 |
DTS |  | 2 |  |  | 1 |  |  | 4 |  |  | 18 |
CSS |  | — |  |  | — |  |  | 14 |  |  | 13 |
Total |  | $ | 425 |  |  | $ | 424 |  |  | $ | 135 |  |  | $ | 131 |
|  | Interest expense (3) |  | Purchases of property and revenue earning equipment |  |  |  |  |  |  |  |
Three months ended March 31, |  | 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |  |  |  |  |
FMS |  | $ | 94 |  |  | $ | 86 |  |  | $ | 482 |  |  | $ | 654 |  |  |  |  |  |  |  |  |
SCS |  | 4 |  |  | 4 |  |  | 27 |  |  | 27 |  |  |  |  |  |  |  |  |
DTS |  | 2 |  |  | 2 |  |  | 1 |  |  | 1 |  |  |  |  |  |  |  |  |
CSS |  | — |  |  | — |  |  | 4 |  |  | 4 |  |  |  |  |  |  |  |  |
Total |  | $ | 100 |  |  | $ | 92 |  |  | $ | 514 |  |  | $ | 686 |  |  |  |  |  |  |  |  |
__________________ (1)Depreciation expense totaling $7 million in 2025 and $7 million in 2024 associated with CSS assets was allocated to business segments based upon estimated and planned asset utilization. (2)Primarily includes operating lease ROU assets amortization. (3)Interest expense was primarily allocated to the FMS segment since such borrowings were used principally to fund the purchase of FMS revenue earning equipment..

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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