Revenue Recognition
Nature of goods and services
In the following table, revenue is summarized by type and by the applicable accounting standard.
Year Ended April 30,
202620252024
(In millions)Topic 842Topic 606TotalTopic 842Topic 606TotalTopic 842Topic 606Total
Revenues:
Equipment rentals$8,302 $— $8,302 $8,049 $— $8,049 $7,727 $— $7,727 
Other rental revenue:
Delivery and pick-up— 875 875 — 862 862 — 802 802 
Other343 800 1,143 338 731 1,069 334 767 1,101 
Total equipment rentals8,645 1,675 10,320 8,387 1,593 9,980 8,061 1,569 9,630 
Sales of rental equipment— 451 451 — 467 467 — 859 859 
Sales of new equipment, merchandise and consumables
— 383 383 — 344 344 — 370 370 
Total revenues$8,645 $2,509 $11,154 $8,387 $2,404 $10,791 $8,061 $2,798 $10,859 
Revenues by reportable segment are presented in Note 5 of the consolidated financial statements, using the revenue captions reflected in our consolidated statements of income.
Allowance for Credit Losses
The roll-forward of the allowance for credit losses is shown below.
Year Ended April 30,
(In millions)202620252024
Beginning balance$102 $141 $107 
Amounts written off or recovered
(61)
(67)
(50)
Increase in allowance recognized
64 
28 
84 
Ending balance$105 $102 $141 
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About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.