| Schedule of Segment Revenue and Net Before Tax Information by Segment |
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 | | FMS | | SCS | | DTS | | Elimination (1) | | Total | | Revenue | | $ | 1,616 | | | $ | 1,504 | | | $ | 606 | | | $ | (293) | | | $ | 3,433 | | | | | | | | | | | | | | Direct operating costs | | 1,248 | | | 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 costs | | 1,118 | | | 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 | | FMS | | SCS | | DTS | | Elimination (1) | | Total | | Revenue | | $ | 4,636 | | | $ | 4,337 | | | $ | 1,758 | | | $ | (825) | | | $ | 9,906 | | | | | | | | | | | | | | Direct operating costs | | 3,629 | | | 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 costs | | 3,402 | | | 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.
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| Schedule of Segment Information by Segment |
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, | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | | FMS | | $ | 428 | | | $ | 435 | | | $ | 89 | | | $ | 95 | | | $ | 492 | | | $ | 464 | | | SCS | | 109 | | | 101 | | | 6 | | | 5 | | | 47 | | | 58 | | | DTS | | 3 | | | 3 | | | 1 | | | 2 | | | 1 | | | 1 | | | CSS | | 17 | | | 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, | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | | FMS | | $ | 1,284 | | | $ | 1,316 | | | $ | 270 | | | $ | 284 | | | $ | 1,265 | | | $ | 1,601 | | | SCS | | 325 | | | 295 | | | 16 | | | 14 | | | 97 | | | 115 | | | DTS | | 9 | | | 14 | | | 4 | | | 6 | | | 2 | | | 2 | | | CSS | | 56 | | | 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.
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