v3.25.4
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Our operating segments are aggregated into reportable business segments based upon similar economic characteristics, products, services, customers and delivery methods.

Our primary measurement of segment financial performance, defined as “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 items as discussed in Note 20, "Other Items Impacting Comparability." 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.

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 set forth financial information regularly provided and reviewed by our Chair and Chief Executive Officer (our Chief Operating Decision Maker "CODM"), 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):

2025FMSSCSDTS
Elimination(1)
Total
Revenue $5,845 $5,459 $2,343 $(982)$12,665 
Direct operating costs4,548 4,853 2,178 
Used vehicle sales, net(22)— — 
Other segment items (2)
818 251 25 
Segment EBT
$501 $355 $140 $(131)865 
Unallocated Central Support Services(83)
Intangible amortization expense (3)
(52)
Non-operating pension costs, net (4)
(36)
Other items impacting comparability, net (5)
(9)
Earnings from continuing operations before income taxes$685 
2024
Revenue$5,888 $5,300 $2,446 $(998)$12,636 
Direct operating costs4,638 4,735 2,270 
Used vehicle sales, net(72)— — 
Other segment items (2)
806 233 51 
Segment EBT
$516 $332 $125 $(134)839 
Unallocated Central Support Services(71)
Intangible amortization expense (3)
(53)
Non-operating pension costs, net (4)
(41)
Other items impacting comparability, net (5)
(13)
Earnings from continuing operations before income taxes$661 
2023
Revenue$5,930 $4,875 $1,785 $(807)$11,783 
Direct operating costs4,651 4,420 1,634 
Used vehicle sales, net(194)— — 
Other segment items (2)
808 224 30 
Segment EBT
$665 $231 $121 $(95)922 
Unallocated Central Support Services(72)
Intangible amortization expense (3)
(35)
Non-operating pension costs, net (4)
(40)
Other items impacting comparability, net (5)
(157)
Earnings from continuing operations before income taxes$618 
_______________ 
(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)Refer to Note 9, "Intangible Assets, Net," for a discussion on this item.
(4)Refer to Note 19, "Employee Benefit Plans," for a discussion on this items.
(5)Refer to Note 20, “Other Items Impacting Comparability,” for a discussion of items excluded from our primary measure of segment performance.
The following table sets forth depreciation expense and other non-cash charges, net, interest expense and cash paid for the purchase of property and revenue earning equipment for the years presented as provided to the CODM for each of our business segments. Total assets of our business segments are not provided to the CODM.
Depreciation expense and other non-cash charges, net (1)
Interest expense
Purchases of property and revenue earning equipment
(in millions)
202520242023202520242023202520242023
FMS$1,762 $1,775 $1,677 $377 $362 $292 $1,963 $2,616 $3,085 
SCS401 371 366 19 17 8 154 50 117 
DTS18 19 11 8 8 (3)3 1 1 
CSS59 63 31 — (1)(1)15 16 31 
Total$2,240 $2,228 $2,085 $404 $386 $296 $2,135 $2,683 $3,234 
_______________ 
(1)Other non-charges, net primarily includes operating lease right-of-use (ROU) assets amortization.

Geographic Information
 December 31,
(In millions)20252024
Long-lived assets:
United States$9,478 $9,758 
Canada605 563 
Mexico83 69 
Total$10,166 $10,390