01—Abstract
Summary
Summary of the 8-K filed April 25, 2012. Cited figures are marked; the original filing is the authoritative source.
This 8-K filing by United Rentals, Inc. primarily serves to disclose a change in accounting presentation for comprehensive income, effective the first quarter of 2012.
The company has adopted a new standard that mandates presenting net income, other comprehensive income, and total comprehensive income in a continuous or two-part statement, eliminating the previous presentation within the statement of changes in stockholders' equity. The filing also provides historical data for net income, other comprehensive (loss) income, and total comprehensive income (loss) for the years 2011, 2010, and 2009, illustrating the impact of foreign currency translation adjustments and fixed price diesel swaps on other comprehensive income. Additionally, the filing includes cautionary statements regarding forward-looking information and details on where investors can find more information related to the proposed transaction with RSC Holdings.
02—Key points
Key Highlights
- United Rentals adopted a new accounting standard requiring a revised presentation of comprehensive income components.
- The change eliminates the option to present other comprehensive income within the statement of changes in stockholders' equity.
- Historical data for net income, other comprehensive income (loss), and total comprehensive income (loss) from 2009-2011 is provided.
- Foreign currency translation adjustments were the primary driver of other comprehensive income (loss) in the historical periods.
- The filing contains standard cautionary statements about forward-looking statements and potential risks related to the proposed merger with RSC Holdings.
- Investors are directed to SEC filings and company websites for additional information regarding the RSC Holdings transaction.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The primary purpose of this 8-K filing is to report a change in accounting presentation for comprehensive income, effective in the first quarter of 2012, and to provide historical data related to this presentation.
How has the presentation of comprehensive income changed?
United Rentals has adopted a new accounting standard that requires components of net income, other comprehensive income, and total comprehensive income to be presented in a single statement or two separate consecutive statements. Previously, these components were presented within the statement of changes in stockholders' equity.
What factors have influenced United Rentals' other comprehensive income historically?
The historical data shows that foreign currency translation adjustments have been the most significant factor impacting other comprehensive income (loss). Fixed price diesel swaps also had a minor impact in 2011.
Does this filing provide any financial results for the current quarter?
No, this 8-K filing does not provide specific financial results for the first quarter of 2012. It focuses on the accounting standard change and historical comprehensive income data, as well as information related to the proposed transaction with RSC Holdings.
04—Continue