v3.26.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Our primary measurement of segment financial performance, defined as segment "Earnings from continuing operations before income taxes" (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. The objective of the 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. 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.
The following table sets forth financial information for each of our segments and provides a reconciliation between segment EBT and Earnings from continuing operations before income taxes (in millions):
Three months ended September 30, 2026
FMSSCSDTS
Elimination (1)
Total
Revenue $1,616 $1,504 $606 $(293)$3,433 
Direct operating costs1,248 1,352 562 
Used vehicle sales, net(17)— — 
Other segment items (2)
208 61 10 
Segment EBT$177 $91 $34 (34)268 
Unallocated Central Support Services(20)
Intangible amortization expense (3)
(14)
Non-operating pension costs, net (4)
(8)
Earnings from continuing operations before income taxes$226 
Three months ended September 30, 2025
Revenue$1,465 $1,380 $570 $(244)$3,171 
Direct operating costs1,118 1,227 527 
Used vehicle sales, net(3)— — 
Other segment items (2)
204 67 7 
Segment EBT$146 $86 $36 (33)235 
Unallocated Central Support Services(21)
Intangible amortization expense (3)
(14)
Non-operating pension costs, net (4)
(10)
Earnings from continuing operations before income taxes$190 
_______________ 
(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 13, Employee Benefit Plans," for further discussion.
Nine months ended September 30, 2026
FMSSCSDTS
Elimination (1)
Total
Revenue $4,636 $4,337 $1,758 $(825)$9,906 
Direct operating costs3,629 3,889 1,627 
Used vehicle sales, net(36)— — 
Other segment items (2)
617 193 38 
Segment EBT$426 $255 $93 (100)674 
Unallocated Central Support Services(61)
Intangible amortization expense (3)
(50)
Non-operating pension costs, net (4)
(34)
Earnings from continuing operations before income taxes$529 
Nine months ended September 30, 2025
Revenue$4,379 $4,077 $1,778 $(744)$9,490 
Direct operating costs3,402 3,612 1,653 
Used vehicle sales, net(10)— — 
Other segment items (2)
621 194 25 
Segment EBT$366 $271 $100 (100)637 
Unallocated Central Support Services(63)
Intangible amortization expense (3)
(39)
Non-operating pension costs, net (4)
(27)
Earnings from continuing operations before income taxes$508 
_______________ 
(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 13, Employee Benefit Plans," for further discussion.

Intangible amortization expense for the nine months ended September 30, 2026, includes a $10 million non-cash impairment charge of a finite-lived intangible asset due to the reduction in projected cash flows from an acquired customer relationship.
The following table sets forth depreciation expense and other non-cash charges, net, interest expense and purchases of property and revenue earning equipment for the three and nine months ended September 30, 2026 and 2025, as provided to the chief operating decision maker (CODM) for each of our business segments. Total assets of our business segments are not provided to the CODM.

(In millions)
Depreciation expense and other non-cash charges, net (1)
Interest expense
Purchases of property and revenue earning equipment
Three months ended September 30,202620252026202520262025
FMS$428 $435 $89 $95 $492 $464 
SCS109 101 6 5 47 58 
DTS3 3 1 2 1 1 
CSS17 16 — — 3 4 
Total$557 $555 $96 $102 $543 $527 

(In millions)
Depreciation expense and other non-cash charges, net (1)
Interest expense
Purchases of property and revenue earning equipment
Nine months ended September 30,202620252026202520262025
FMS$1,284 $1,316 $270 $284 $1,265 $1,601 
SCS325 295 16 14 97 115 
DTS9 14 4 6 2 2 
CSS56 45 — — 11 12 
Total$1,674 $1,670 $290 $304 $1,375 $1,730 
_______________ 
(1)Other non-cash charges, net primarily includes operating lease right-of-use (ROU) assets amortization. For the nine months ended September 30, 2026, CSS includes the $10 million non-cash impairment charge related to an acquired finite-lived intangible asset.