Segment Information

9 Months Ended

Sep. 30, 2024

(11) Segment Information

We have identified four reportable segments: equipment rentals, sales of rental equipment, sales of new equipment, and parts, service and other revenues. These segments are based upon revenue streams and how management of the Company allocates resources and assesses performance. There were no sales between segments for any of the periods presented. Selling, general, and administrative expenses as well as all other income and expense items below gross profit are not generally allocated to our reportable segments.

We revised our reportable segments by aggregating parts sales and service revenues into one segment during the quarter ended June 30, 2024 due to revised internal reporting provided to our Chief Operating Decision Maker. We previously reported five segments as noted in our Consolidated Financial Statements included as Item 8 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The presentation of prior period information disclosed below has been revised to reflect this change.

We do not compile discrete financial information by segments other than the information presented below. The following table presents information about our reportable segments (amounts in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Segment Revenues:
Equipment rentals	$	326,219	$	315,811	$	933,900	$	869,278
Sales of rental equipment		27,790		52,708		110,842		124,476
Sales of new equipment		14,054		12,633		35,136		29,308
Parts, service and other		16,799		19,544		52,623		60,348
Total revenues	$	384,862	$	400,696	$	1,132,501	$	1,083,410
Segment Gross Profit:
Equipment rentals	$	147,844	$	149,849	$	417,988	$	400,582
Sales of rental equipment		16,733		30,815		68,836		73,080
Sales of new equipment		2,788		1,671		6,359		4,030
Parts, service and other		4,089		6,048		14,416		20,430
Total gross profit	$	171,454	$	188,383	$	507,599	$	498,122


	Balances at
	September 30,		December 31,
	2024		2023
Segment identified assets:
Equipment rentals	$	1,924,653	$	1,756,578
Equipment sales		9,192		98,045
Parts, service and other		12,842		11,886
Total segment identified assets		1,946,687		1,866,509
Unallocated identified assets		945,979		773,377
Total assets	$	2,892,666	$	2,639,886

The Company operates primarily in the United States. Our sales to international customers for both the three months ended September 30, 2024 and 2023 and for both the nine months ended September 30, 2024 and 2023 were 0.1% of total revenues. No one customer accounted for more than 10% of our total revenues for any of the periods presented.

- 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.

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+ Details

H&E Equipment Services, Inc. 10-Q