Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

United Rentals Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Federal	(34)	78)	290)	97)	47)
Foreign	100)	26)	15)	(6)	18)
State and local	94)	88)	65)	45)	58)
Current	160)	192)	370)	136)	123)
Federal	525)	260)	(107)	185)	243)
Foreign	(16)	14)	6)	14)	3)
State and local	28)	(6)	(20)	5)	11)
Deferred	537)	268)	(121)	204)	257)
Provision for income taxes	697)	460)	249)	340)	380)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	United Rentals Inc. current decreased from 2020 to 2021 and from 2021 to 2022.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	United Rentals Inc. deferred increased from 2020 to 2021 and from 2021 to 2022.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	United Rentals Inc. provision for income taxes increased from 2020 to 2021 and from 2021 to 2022.

United Rentals Inc., effective income tax rate (EITR) reconciliation

		Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
	Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective income tax rate	24.88%	24.92%	21.86%	22.46%	25.75%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	United Rentals Inc. effective income tax rate increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

United Rentals Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Reserves and allowances	186)	165)	129)	111)	126)
Debt cancellation and other	18)	16)	10)	8)	11)
Net operating loss and credit carryforwards	171)	175)	242)	371)	435)
Interest carryforward	84)	—)	—)	—)	—)
Operating lease assets	216)	210)	183)	182)	—)
Deferred tax assets	675)	566)	564)	672)	572)
Valuation allowance	(19)	(9)	(21)	(43)	(46)
Net deferred tax assets	656)	557)	543)	629)	526)
Property and equipment, including rental equipment	(2,986)	(2,349)	(1,962)	(2,135)	(1,976)
Operating lease liabilities	(216)	(210)	(183)	(182)	—)
Intangibles	(125)	(152)	(166)	(199)	(237)
Deferred tax liability	(3,327)	(2,711)	(2,311)	(2,516)	(2,213)
Net deferred tax asset (liability)	(2,671)	(2,154)	(1,768)	(1,887)	(1,687)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	United Rentals Inc. deferred tax assets increased from 2020 to 2021 and from 2021 to 2022.
Net deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	United Rentals Inc. net deferred tax assets increased from 2020 to 2021 and from 2021 to 2022.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	United Rentals Inc. net deferred tax asset (liability) decreased from 2020 to 2021 and from 2021 to 2022.

United Rentals Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
	Deferred tax liability	2,671)	2,154)	1,768)	1,887)	1,687)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Deferred tax liability	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	United Rentals Inc. deferred tax liability increased from 2020 to 2021 and from 2021 to 2022.

United Rentals Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Liabilities
Total liabilities (as reported)	17,121)	14,301)	13,323)	15,140)	14,730)
Less: Noncurrent deferred tax liabilities, net	2,671)	2,154)	1,768)	1,887)	1,687)
Total liabilities (adjusted)	14,450)	12,147)	11,555)	13,253)	13,043)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	7,062)	5,991)	4,545)	3,830)	3,403)
Less: Net deferred tax assets (liabilities)	(2,671)	(2,154)	(1,768)	(1,887)	(1,687)
Stockholders’ equity (adjusted)	9,733)	8,145)	6,313)	5,717)	5,090)
Adjustment to Net Income
Net income (as reported)	2,105)	1,386)	890)	1,174)	1,096)
Add: Deferred income tax expense (benefit)	537)	268)	(121)	204)	257)
Net income (adjusted)	2,642)	1,654)	769)	1,378)	1,353)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

United Rentals Inc., Financial Data: Reported vs. Adjusted

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United Rentals Inc., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net Profit Margin
Reported net profit margin	18.08%	14.27%	10.43%	12.55%	13.62%
Adjusted net profit margin	22.69%	17.02%	9.02%	14.74%	16.81%
Financial Leverage
Reported financial leverage	3.42	3.39	3.93	4.95	5.33
Adjusted financial leverage	2.48	2.49	2.83	3.32	3.56
Return on Equity (ROE)
Reported ROE	29.81%	23.13%	19.58%	30.65%	32.21%
Adjusted ROE	27.14%	20.31%	12.18%	24.10%	26.58%
Return on Assets (ROA)
Reported ROA	8.70%	6.83%	4.98%	6.19%	6.04%
Adjusted ROA	10.93%	8.15%	4.30%	7.26%	7.46%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	United Rentals Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	United Rentals Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	United Rentals Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	United Rentals Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

United Rentals Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	2,105)	1,386)	890)	1,174)	1,096)
Revenues	11,642)	9,716)	8,530)	9,351)	8,047)
Profitability Ratio
Net profit margin¹	18.08%	14.27%	10.43%	12.55%	13.62%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	2,642)	1,654)	769)	1,378)	1,353)
Revenues	11,642)	9,716)	8,530)	9,351)	8,047)
Profitability Ratio
Adjusted net profit margin²	22.69%	17.02%	9.02%	14.74%	16.81%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 2,105 ÷ 11,642 = 18.08%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 2,642 ÷ 11,642 = 22.69%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	United Rentals Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	24,183)	20,292)	17,868)	18,970)	18,133)
Stockholders’ equity	7,062)	5,991)	4,545)	3,830)	3,403)
Solvency Ratio
Financial leverage¹	3.42	3.39	3.93	4.95	5.33
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Total assets	24,183)	20,292)	17,868)	18,970)	18,133)
Adjusted stockholders’ equity	9,733)	8,145)	6,313)	5,717)	5,090)
Solvency Ratio
Adjusted financial leverage²	2.48	2.49	2.83	3.32	3.56

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 24,183 ÷ 7,062 = 3.42

² Adjusted financial leverage = Total assets ÷ Adjusted stockholders’ equity
= 24,183 ÷ 9,733 = 2.48

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	United Rentals Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	2,105)	1,386)	890)	1,174)	1,096)
Stockholders’ equity	7,062)	5,991)	4,545)	3,830)	3,403)
Profitability Ratio
ROE¹	29.81%	23.13%	19.58%	30.65%	32.21%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	2,642)	1,654)	769)	1,378)	1,353)
Adjusted stockholders’ equity	9,733)	8,145)	6,313)	5,717)	5,090)
Profitability Ratio
Adjusted ROE²	27.14%	20.31%	12.18%	24.10%	26.58%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 2,105 ÷ 7,062 = 29.81%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 2,642 ÷ 9,733 = 27.14%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	United Rentals Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	2,105)	1,386)	890)	1,174)	1,096)
Total assets	24,183)	20,292)	17,868)	18,970)	18,133)
Profitability Ratio
ROA¹	8.70%	6.83%	4.98%	6.19%	6.04%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	2,642)	1,654)	769)	1,378)	1,353)
Total assets	24,183)	20,292)	17,868)	18,970)	18,133)
Profitability Ratio
Adjusted ROA²	10.93%	8.15%	4.30%	7.26%	7.46%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 2,105 ÷ 24,183 = 8.70%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 2,642 ÷ 24,183 = 10.93%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	United Rentals Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

United Rentals Inc. (NYSE:URI)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

United Rentals Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

United Rentals Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)