<PAGE>

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                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                Amendment No. 1

                                      on

                                  FORM 10-Q/A

(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934

    For the quarterly period ended June 30, 2001

[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

  For the transition period from            to

                          Commission File No. 1-14387

                             United Rentals, Inc.

                          Commission File No. 1-13663

                     United Rentals (North America), Inc.
          (Exact names of registrants as specified in their charters)

<TABLE>
<S>                                           <C>
                   Delaware                                   06-1522496
                   Delaware                                   06-1493538
         (State or other jurisdiction                      (I.R.S. Employer
       of incorporation or organization)                 Identification Nos.)
          Five Greenwich Office Park,
             Greenwich, Connecticut                              06830
   (Address of principal executive offices)                   (Zip Code)
</TABLE>

                                (203) 622-3131
             (Registrants' telephone number, including area code)

  Indicate by check mark whether the registrants (1) have filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrants were required to file such reports), and (2) have been subject to
such filing requirements for the past 90 days.

                                X  Yes       No

  As of October 1, 2001, there were 73,295,189 shares of the United Rentals,
Inc. common stock, $.01 par value, outstanding. There is no market for the
common stock of United Rentals (North America), Inc., all outstanding shares
of which are owned by United Rentals, Inc.

  This combined Form 10-Q is separately filed by (i) United Rentals, Inc. and
(ii) United Rentals (North America), Inc. (which is a wholly owned subsidiary
of United Rentals, Inc.). United Rentals (North America), Inc. meets the
conditions set forth in general instruction H(1) (a) and (b) of Form 10-Q and
is therefore filing this form with the reduced disclosure format permitted by
such instruction.

-------------------------------------------------------------------------------
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<PAGE>

                              UNITED RENTALS, INC.
                      UNITED RENTALS (NORTH AMERICA), INC.

            FORM 10-Q/A FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2001

                                     INDEX

<TABLE>
<CAPTION>
                                                                           Page
                                                                           ----
 <C>    <S>                                                                <C>
 PART I FINANCIAL INFORMATION
 Item 1 Unaudited Consolidated Financial Statements
        United Rentals, Inc. Consolidated Balance Sheets as of June 30,
         2001 and
         December 31, 2000 (unaudited)..................................     1
        United Rentals, Inc. Consolidated Statements of Operations for
         the Six and Three Months Ended June 30, 2001 and 2000
         (unaudited)....................................................     2
        United Rentals, Inc. Consolidated Statement of Stockholders'
         Equity for the Six Months Ended June 30, 2001 (unaudited)......     3
        United Rentals, Inc. Consolidated Statements of Cash Flows for
         the Six Months Ended June 30, 2001 and 2000 (unaudited)........     4
        United Rentals (North America), Inc. Consolidated Balance Sheets
         as of June 30, 2001
         and December 31, 2000 (unaudited)..............................     5
        United Rentals (North America), Inc. Consolidated Statements of
         Operations for the
         Six and Three Months Ended June 30, 2001 and 2000 (unaudited)..     6
        United Rentals (North America), Inc. Consolidated Statement of
         Stockholder's Equity for the Six Months Ended June 30, 2001
         (unaudited)....................................................     7
        United Rentals (North America), Inc. Consolidated Statements of
         Cash Flows for the
         Six Months Ended June 30, 2001 and 2000 (unaudited)............     8
        Notes to Unaudited Consolidated Financial Statements............     9
        Signatures......................................................    25
</TABLE>
<PAGE>

                              UNITED RENTALS, INC.

                          CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                             June 30,    June 30,   December 31,
                                               2001        2001         2000
                                           ------------ ----------  ------------
                                            Pro Forma          Restated
                                           (See Note 1)      (See Note 1)
                                            (In thousands, except share data)
<S>                                        <C>          <C>         <C>
ASSETS
Cash and cash equivalents................   $   36,135  $   36,135   $   34,384
Accounts receivable, net of allowance for
 doubtful accounts of $49,693 in 2001 and
 $55,624 in 2000.........................      490,555     490,555      469,594
Inventory................................      114,570     114,570      133,380
Prepaid expenses and other assets........      183,885     183,885      104,493
Rental equipment, net....................    1,851,404   1,851,404    1,732,835
Property and equipment, net..............      428,576     428,576      422,239
Goodwill, net of accumulated amortization
 of $131,975 in 2001 and
 $103,219 in 2000........................    2,199,876   2,199,876    2,215,532
Other intangible assets, net.............        9,645       9,645       11,476
                                            ----------  ----------   ----------
                                            $5,314,646  $5,314,646   $5,123,933
                                            ==========  ==========   ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
  Accounts payable.......................   $  312,014  $  312,014   $  260,155
  Debt...................................    2,759,748   2,759,748    2,675,367
  Deferred taxes.........................      230,106     230,106      206,243
  Accrued expenses and other
   liabilities...........................      172,013     172,013      136,225
                                            ----------  ----------   ----------
    Total liabilities....................    3,473,881   3,473,881    3,277,990
Commitments and contingencies
Company-obligated mandatorily redeemable
 convertible preferred securities of
 a subsidiary trust......................      300,000     300,000      300,000
Series A and B preferred stock...........                  430,800      430,800
Stockholders' equity:
  Preferred stock--$.01 par value,
   5,000,000 shares authorized:
   Series C perpetual convertible
    preferred stock--$300,000 liquidation
    preference, 300,000 shares issued and
    outstanding..........................            3
   Series D perpetual convertible
    preferred stock--$150,000 liquidation
    preference, 150,000 shares issued and
    outstanding..........................            2
  Common stock--$.01 par value,
   500,000,000 shares authorized,
   73,150,359 shares issued and
   outstanding in 2001 and 71,065,707 in
   2000..................................          732         732          711
  Additional paid-in capital.............    1,241,127     810,332      765,529
  Deferred compensation..................      (59,255)    (59,255)
  Retained earnings......................      372,880     372,880      355,850
  Accumulated other comprehensive loss...      (14,724)    (14,724)      (6,947)
                                            ----------  ----------   ----------
    Total stockholders' equity...........    1,540,765   1,109,965    1,115,143
                                            ----------  ----------   ----------
                                            $5,314,646  $5,314,646   $5,123,933
                                            ==========  ==========   ==========
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       1
<PAGE>

                              UNITED RENTALS, INC.

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                       Six Months Ended     Three Months Ended
                                           June 30,              June 30,
                                     ---------------------  -------------------
                                        2001       2000       2001      2000
                                     ---------- ----------  --------- ---------
                                       (In thousands, except per share data)
<S>                                  <C>        <C>         <C>       <C>
Revenues:
 Equipment rentals.................  $1,043,750 $  911,632  $ 582,368 $ 511,534
 Sales of rental equipment.........      72,239    155,171     33,117    84,839
 Sales of equipment and
  merchandise and other revenues...     271,128    242,105    152,528   133,573
                                     ---------- ----------  --------- ---------
Total revenues.....................   1,387,117  1,308,908    768,013   729,946
Cost of revenues:
 Cost of equipment rentals,
  excluding depreciation...........     500,136    396,614    270,103   222,314
 Depreciation of rental
  equipment........................     158,354    159,035     81,553    85,532
 Cost of rental equipment sales....      42,381     91,168     19,305    50,082
 Cost of equipment and merchandise
  sales and other operating
  costs............................     197,616    184,309    110,989   100,220
                                     ---------- ----------  --------- ---------
Total cost of revenues.............     898,487    831,126    481,950   458,148
                                     ---------- ----------  --------- ---------
Gross profit.......................     488,630    477,782    286,063   271,798
Selling, general and administrative
 expenses..........................     221,715    210,969    112,822   109,119
Restructuring charge...............      28,922                28,922
Non-rental depreciation and
 amortization......................      53,238     40,721     27,131    20,703
                                     ---------- ----------  --------- ---------
Operating income...................     184,755    226,092    117,188   141,976
Interest expense...................     114,589    106,210     57,059    56,527
Preferred dividends of a subsidiary
 trust.............................       9,750      9,750      4,875     4,875
Other (income) expense, net........       6,935       (312)     7,605      (108)
                                     ---------- ----------  --------- ---------
Income before provision for income
 taxes and extraordinary item......      53,481    110,444     47,649    80,682
Provision for income taxes.........      25,134     45,834     22,714    33,483
                                     ---------- ----------  --------- ---------
Income before extraordinary item...      28,347     64,610     24,935    47,199
Extraordinary item, net of tax
 benefit of $6,759.................      11,317                11,317
                                     ---------- ----------  --------- ---------
Net income.........................  $   17,030 $   64,610  $  13,618 $  47,199
                                     ========== ==========  ========= =========
Earnings per share--basic:
  Income before extraordinary
   item............................  $     0.40 $     0.90  $    0.35 $    0.66
  Extraordinary item, net..........        0.16                  0.16
                                     ---------- ----------  --------- ---------
  Net income.......................  $     0.24 $     0.90  $    0.19 $    0.66
                                     ========== ==========  ========= =========
Earnings per share--diluted:
  Income before extraordinary
   item............................  $     0.31 $     0.70  $    0.26 $    0.51
  Extraordinary item, net..........        0.13                  0.12
                                     ---------- ----------  --------- ---------
  Net income.......................  $     0.18 $     0.70  $    0.14 $    0.51
                                     ========== ==========  ========= =========
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       2
<PAGE>

                              UNITED RENTALS, INC.

                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                  (Unaudited)
<TABLE>
<CAPTION>
                            Common Stock
                          ------------------
                                                                                             Accumulated
                                             Additional                                         Other
                          Number of           Paid-in     Deferred   Retained Comprehensive Comprehensive
                            Shares    Amount  Capital   Compensation Earnings    Income         Loss
                          ----------  ------ ---------- ------------ -------- ------------- -------------
                                                (In thousands, except share data)


<S>                       <C>         <C>    <C>        <C>          <C>      <C>           <C>
Balance, December 31,
 2000...................  71,065,707   $711   $765,529               $355,850                 $ (6,947)
Comprehensive income:
 Net income.............                                               17,030    $17,030
 Other comprehensive
  income:
 Foreign currency
  translation
  adjustments...........                                                          (3,448)       (3,448)
 Cumulative effect on
  equity of adopting FAS
  133, net of tax of
  $1,784................                                                          (2,516)       (2,516)
 Derivatives qualifying
  as hedges, net of tax
  of $1,287.............                                                          (1,813)       (1,813)
                                                                                 -------
Comprehensive income....                                                         $ 9,253
                                                                                 =======
Issuance of common stock
 under deferred
 compensation plans.....   2,767,041     28     60,621    $(60,649)
Amortization of deferred
 compensation...........                                     1,394
Issuance of common
 stock..................       2,770                50
Exercise of common
 stock options..........     665,441      7      8,876
Shares repurchased and
 retired................  (1,350,600)   (14)   (24,744)
                          ----------   ----   --------    --------   --------                 --------
Balance, June 30, 2001..  73,150,359   $732   $810,332    $(59,255)  $372,880                 $(14,724)
                          ==========   ====   ========    ========   ========                 ========
</TABLE>


  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       3
<PAGE>

                              UNITED RENTALS, INC.

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                         Six Months Ended
                                                             June 30,
                                                       ----------------------
                                                          2001        2000
                                                       -----------  ---------
                                                          (In thousands)
<S>                                                    <C>          <C>
Cash Flows From Operating Activities:
Net income............................................ $    17,030  $  64,610
Adjustments to reconcile net income to net cash
 provided by operating activities:
 Depreciation and amortization........................     211,592    199,756
 Gain on sales of rental equipment....................     (29,858)   (64,003)
 Deferred taxes.......................................      17,427     14,571
 Amortization of deferred compensation................       1,394
 Extraordinary item...................................      18,076
 Restructuring charge.................................      10,893
 Changes in operating assets and liabilities:
 Accounts receivable..................................     (20,853)   (31,981)
 Inventory............................................      19,355    (13,616)
 Prepaid expenses and other assets....................     (50,663)    (1,430)
 Accounts payable.....................................      51,567    137,285
 Accrued expenses and other liabilities...............      52,495    (42,367)
                                                       -----------  ---------
     Net cash provided by operating activities........     298,455    262,825
Cash Flows From Investing Activities:
Purchases of rental equipment.........................    (303,281)  (513,817)
Purchases of property and equipment...................     (31,426)   (69,241)
Proceeds from sales of rental equipment...............      72,239    155,171
In-process acquisition costs..........................      (2,140)    (2,445)
Payments of contingent purchase price.................                 (6,553)
Purchases of other companies..........................     (37,801)  (265,084)
                                                       -----------  ---------
     Net cash used in investing activities............    (302,409)  (701,969)
Cash Flows From Financing Activities:
Proceeds from debt....................................   1,979,155    376,903
Payments of debt......................................  (1,926,282)   (38,217)
Proceeds from sale-leaseback..........................                147,515
Payments of financing costs...........................     (27,118)    (7,164)
Proceeds from the exercise of common stock options....       8,156         96
Shares repurchased and retired........................     (24,758)   (30,950)
                                                       -----------  ---------
     Net cash provided by financing activities........       9,153    448,183
Effect of foreign exchange rates......................      (3,448)       342
                                                       -----------  ---------
Net increase in cash and cash equivalents.............       1,751      9,381
Cash and cash equivalents at beginning of period......      34,384     23,811
                                                       -----------  ---------
Cash and cash equivalents at end of period............ $    36,135  $  33,192
                                                       ===========  =========
Supplemental disclosure of cash flow information:
Cash paid for interest................................ $   110,023  $ 101,046
Cash paid for income taxes, net of refunds............ $       719  $  62,720
Supplemental disclosure of non-cash investing and
 financing activities:
The Company acquired the net assets and assumed
 certain liabilities of other companies as follows:
 Assets, net of cash acquired......................... $     5,457  $ 392,873
 Liabilities assumed..................................      (1,036)  (102,592)
 Less:
   Amounts paid through issuance of debt..............        (600)   (25,197)
                                                       -----------  ---------
                                                             3,821    265,084
 Due to seller and other payments.....................      33,980
                                                       -----------  ---------
     Net cash paid.................................... $    37,801  $ 265,084
                                                       ===========  =========
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       4
<PAGE>

                      UNITED RENTALS (NORTH AMERICA), INC.

                          CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                              June 30,
                                                2001         December 31, 2000
                                           ----------------  ------------------
                                           (In thousands, except share data)
<S>                                        <C>               <C>
ASSETS
Cash and cash equivalents................. $         36,135   $         34,384
Accounts receivable, net of allowance for
 doubtful accounts of $49,693 in 2001 and
 $55,624 in 2000..........................          490,555            469,594
Inventory.................................          114,570            133,380
Prepaid expenses and other assets.........          174,899            104,493
Rental equipment, net.....................        1,851,404          1,732,835
Property and equipment, net...............          393,465            387,432
Goodwill, net of accumulated amortization
 of $131,975 in 2001 and
 $103,219 in 2000.........................        2,199,876          2,215,532
Other intangible assets, net..............            9,645             11,476
                                           ----------------   ----------------
                                           $      5,270,549   $      5,089,126
                                           ================   ================
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
  Accounts payable........................ $        312,014   $        260,155
  Debt....................................        2,759,748          2,675,367
  Deferred taxes..........................          230,106            206,243
  Accrued expenses and other liabilities..          149,825            119,172
                                           ----------------   ----------------
    Total liabilities.....................        3,451,693          3,260,937
Commitments and contingencies
Stockholder's equity:
  Common stock--$0.01 par value, 3,000
   shares authorized, 1,000 shares issued
   and outstanding........................
  Additional paid-in capital..............        1,515,817          1,507,661
  Retained earnings.......................          317,763            327,475
  Accumulated other comprehensive loss....          (14,724)            (6,947)
                                           ----------------   ----------------
    Total stockholder's equity............        1,818,856          1,828,189
                                           ----------------   ----------------
                                           $      5,270,549   $      5,089,126
                                           ================   ================
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       5
<PAGE>

                      UNITED RENTALS (NORTH AMERICA), INC.

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                      Six Months Ended     Three Months Ended
                                          June 30,              June 30,
                                    ---------------------  -------------------
                                       2001       2000       2001      2000
                                    ---------- ----------  --------- ---------
                                                 (In thousands)
<S>                                 <C>        <C>         <C>       <C>
Revenues:
 Equipment rentals................  $1,043,750 $  911,632  $582,3 68 $ 511,534
 Sales of rental equipment........      72,239    155,171     33,117    84,839
 Sales of equipment and
  merchandise and other revenues..     271,128    242,105    152,528   133,573
                                    ---------- ----------  --------- ---------
Total revenues....................   1,387,117  1,308,908    768,013   729,946
Cost of revenues:
 Cost of equipment rentals,
  excluding depreciation..........     500,136    396,614    270,103   222,314
 Depreciation of rental
  equipment.......................     158,354    159,035     81,553    85,532
 Cost of rental equipment sales...      42,381     91,168     19,305    50,082
 Cost of equipment and merchandise
  sales and other operating
  costs...........................     197,616    184,309    110,989   100,220
                                    ---------- ----------  --------- ---------
Total cost of revenues............     898,487    831,126    481,950   458,148
                                    ---------- ----------  --------- ---------
Gross profit......................     488,630    477,782    286,063   271,798
Selling, general and
 administrative expenses..........     221,715    210,969    112,822   109,119
Restructuring charge..............      28,922                28,922
Non-rental depreciation and
 amortization.....................      48,952     37,155     24,909    18,838
                                    ---------- ----------  --------- ---------
Operating income..................     189,041    229,658    119,410   143,841
Interest expense..................     114,589    106,210     57,059    56,527
Other (income) expense, net.......       6,935       (312)     7,605      (108)
                                    ---------- ----------  --------- ---------
Income before provision for income
 taxes and extraordinary item.....      67,517    123,760     54,746    87,422
Provision for income taxes........      31,404     51,409     26,104    36,280
                                    ---------- ----------  --------- ---------
Income before extraordinary item..      36,113     72,351     28,642    51,142
Extraordinary item, net of tax
 benefit of $6,759................      11,317                11,317
                                    ---------- ----------  --------- ---------
Net income .......................  $   24,796 $   72,351  $  17,325 $  51,142
                                    ========== ==========  ========= =========
</TABLE>



  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       6
<PAGE>

                      UNITED RENTALS (NORTH AMERICA), INC.

                 CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY
                                  (Unaudited)

<TABLE>
<CAPTION>
                             Common Stock                                       Accumulated
                           ---------------- Additional                             Other
                            Number           Paid-In   Retained  Comprehensive Comprehensive
                           of Shares Amount  Capital   Earnings     Income         Loss
                           --------- ------ ---------- --------  ------------- -------------
                                   (In thousands, except share data)

<S>                        <C>       <C>    <C>        <C>       <C>           <C>
Balance, December 31,
 2000....................    1,000          $1,507,661 $327,475                   $(6,947)
Comprehensive income:
 Net income..............                                24.796     $24.796
 Other comprehensive
  income:
  Foreign currency
   translation
   adjustments...........                                            (3,448)       (3,448)
  Cumulative effect on
   equity of adopting FAS
   133, net of tax of
   $1,784................                                            (2,516)       (2,516)
  Derivatives qualifying
   as hedges, net of tax
   $1,287................                                            (1,813)       (1,813)
                                      ---                           -------
Comprehensive income.....                                           $17,019
                                                                    =======
Contributed capital from
 parent..................                        8,156
Dividend distributions to
 parent..................                               (34,508)
                             -----          ---------- --------                  --------
Balance, June 30, 2001...    1,000          $1,515,817 $317,763                  $(14,724)
                             =====          ========== ========                  ========
</TABLE>



  The accompanying notes are an integral part of these consolidated financial
                                  statements.


                                       7
<PAGE>

                      UNITED RENTALS (NORTH AMERICA), INC.

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                         Six Months Ended
                                                             June 30,
                                                       ----------------------
                                                          2001        2000
                                                       -----------  ---------
                                                          (In thousands)
<S>                                                    <C>          <C>
Cash Flows From Operating Activities:
Net income............................................ $    24,796  $  72,351
Adjustments to reconcile net income to net cash
 provided by operating activities:
 Depreciation and amortization........................     207,306    196,190
 Gain on sales of rental equipment....................     (29,858)   (64,003)
 Deferred taxes.......................................      17,427     14,571
 Extraordinary item...................................      18,076
 Restructuring charge.................................      10,893
 Changes in operating assets and liabilities:
 Accounts receivable..................................     (20,853)   (31,981)
 Inventory............................................      19,355    (13,616)
 Prepaid expenses and other assets....................     (43,429)   (14,124)
 Accounts payable.....................................      51,567    127,822
 Accrued expenses and other liabilities...............      46,583    (56,461)
                                                       -----------  ---------
   Net cash provided by operating activities..........     301,863    230,749
Cash Flows From Investing Activities:
Purchases of rental equipment.........................    (303,281)  (513,817)
Purchases of property and equipment...................     (27,224)   (55,656)
Proceeds from sales of rental equipment...............      72,239    155,171
Payments of contingent purchase price.................                 (6,553)
Purchases of other companies..........................     (37,801)  (265,084)
                                                       -----------  ---------
   Net cash used in investing activities..............    (296,067)  (685,939)
Cash Flows From Financing Activities:
Proceeds from debt....................................   1,979,155    376,903
Payments of debt......................................  (1,926,282)   (38,217)
Proceeds from sale-leaseback..........................                147,515
Payments of financing costs...........................     (27,118)    (7,155)
Due to parent.........................................                 30,950
Capital contributions by parent.......................       8,156         96
Dividend distributions to parent......................     (34,508)   (45,863)
                                                       -----------  ---------
   Net cash provided by (used in) financing
    activities........................................        (597)   464,229
Effect of foreign exchange rates......................      (3,448)       342
                                                       -----------  ---------
Net increase in cash and cash equivalents.............       1,751      9,381
Cash and cash equivalents at beginning of period......      34,384     23,811
                                                       -----------  ---------
Cash and cash equivalents at end of period............ $    36,135  $  33,192
                                                       ===========  =========
Supplemental disclosure of cash flow information:
Cash paid for interest................................ $   100,273  $  91,296
Cash paid for income taxes, net of refunds............ $       719  $  62,720
Supplemental disclosure of non-cash investing and
 financing activities:
The Company acquired the net assets and assumed
 certain liabilities of other companies as follows:
 Assets, net of cash acquired......................... $     5,457  $ 392,873
 Liabilities assumed..................................      (1,036)  (102,592)
 Less:
   Amounts paid through issuance of debt..............        (600)   (25,197)
                                                       -----------  ---------
                                                             3,821    265,084
 Due to seller and other payments.....................      33,980
                                                       -----------  ---------
     Net cash paid.................................... $    37,801  $ 265,084
                                                       ===========  =========
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       8
<PAGE>

                             UNITED RENTALS, INC.

             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation

General

  United Rentals, Inc., is principally a holding company ("Holdings" or the
"Company") and conducts its operations primarily through its wholly owned
subsidiary United Rentals (North America), Inc. ("URI") and subsidiaries of
URI. Separate footnote information is not presented for the financial
statements of URI and subsidiaries as that information is substantially
equivalent to that presented below. Earnings per share data is not provided
for the operating results of URI and its subsidiaries as they are wholly owned
subsidiaries of Holdings.

  The Consolidated Financial Statements of the Company included herein are
unaudited and, in the opinion of management, such financial statements reflect
all adjustments, consisting only of normal recurring adjustments, necessary to
present fairly the results of the interim periods presented. Interim financial
statements do not require all disclosures normally presented in year-end
financial statements, and, accordingly, certain disclosures have been omitted.
Results of operations for the six and three month periods ended June 30, 2001
are not necessarily indicative of the results that may be expected for the
year ending December 31, 2001. The Consolidated Financial Statements included
herein should be read in conjunction with the Company's Consolidated Financial
Statements and related Notes thereto included in the Company's Annual Report
on Form 10-K for the year ended December 31, 2000.

Impact of Recently Issued Accounting Standards

  In September 2000, the FASB issued SFAS No. 140, "Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities--a
replacement of FASB Statement No. 125". This standard revises the standards
for accounting for securitizations and other transfers of financial assets and
collateral and requires certain disclosures. This standard is effective for
transfers and servicing of financial assets and extinguishments of liabilities
occurring after March 31, 2001 and for disclosures relating to securitization
transactions and collateral for fiscal years ending after December 15, 2000.
The adoption of SFAS No. 140 did not have a material effect on the Company's
consolidated financial position or results of operations.

  In June 2001, the FASB issued SFAS No. 141, "Business Combinations". This
standard addresses financial accounting and reporting for business
combinations and supersedes APB Opinion No. 16, "Business Combinations" and
SFAS No. 38, "Accounting for Preacquisition Contingencies of Purchased
Enterprises". All business combinations in the scope of this Statement are to
be accounted for using one method, the purchase method. This standard is
effective for all business combinations initiated after June 30, 2001.

  In June 2001, the FASB issued SFAS No. 142, "Goodwill and Other Intangible
Assets". This standard addresses financial accounting and reporting for
acquired goodwill and other intangible assets and supersedes APB Opinion No.
17, "Intangible Assets". This standard is effective for fiscal years beginning
after December 15, 2001. However, this standard is immediately effective in
cases where goodwill and intangible assets are acquired after June 30, 2001.
Under this standard, goodwill and intangible assets deemed to have indefinite
lives will no longer be amortized but will be subject to annual impairment
tests. The Company is currently evaluating the impact SFAS No. 142 will have
on its financial statements and will perform a fair value analysis of its
goodwill in connection with the adoption of this standard on January 1, 2002.

Preferred Stock

  The Company issued Series A Perpetual Convertible Preferred Stock ("Series A
Preferred") and Series B Perpetual Convertible Preferred Stock ("Series B
Preferred") in 1999 and included such preferred in stockholders' equity. In
July 2001, the SEC issued guidance to all public companies as to when
redeemable preferred stock may be classified as stockholders' equity. This
guidance indicates that preferred stock that would

                                       9
<PAGE>

                             UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

be subject to redemption on the occurrence of an event outside the control of
the issuer may not be classified as equity and that the probability of the
event occurring is not a factor to be considered. Under this guidance, the
Series A Preferred and Series B Preferred would not be included in
stockholders' equity because this stock would be subject to mandatory
redemption on a hostile change of control. On September 28, 2001, the Company
entered into an agreement effecting the exchange of new Series C Perpetual
Convertible Preferred Stock ("Series C Preferred") for the Series A Preferred
and new Series D Perpetual Convertible Preferred Stock ("Series D Preferred")
for the Series B Preferred (see note 11). The Series C Preferred and Series D
Preferred stock is not subject to mandatory redemption on a hostile change of
control, and will be classified as stockholders' equity under the recently
issued SEC guidance.

  The effect of the foregoing is that the Company's perpetual convertible
preferred stock will be classified as stockholders' equity as of September 28,
2001 and thereafter, but will be classified outside of stockholders' equity
for earlier dates. Accordingly, the Company has restated the accompanying
balance sheets to show its $430.8 million of perpetual convertible preferred
stock under "Series A and B Preferred Stock" rather than under "Stockholders'
Equity." The Company has also made a corresponding change to the related
Consolidated Statements of Stockholders' Equity. In all other respects, the
financial statements remain unchanged, including total assets and liabilities,
revenues, operating income, net income and earnings per share. The Company's
balance sheets for dates after September 28, 2001, will include the perpetual
convertible preferred stock in stockholders' equity.

  The pro forma amounts on the accompanying balance sheet gives effect to the
above-referenced exchange, as if it had occurred on June 30, 2001.


Reclassifications

  Certain prior year balances have been reclassified to conform to the 2001
presentation.

2. Acquisitions

  During the six months ended June 30, 2001 and the year ended December 31,
2000, the Company completed two acquisitions and 53 acquisitions,
respectively, that were accounted for as purchases. The results of operations
of the businesses acquired in these acquisitions have been included in the
Company's results of operations from their respective acquisition dates.

  The purchase prices for such acquisitions have been allocated to the assets
acquired and liabilities assumed based on their respective fair values at
their respective acquisition dates. However, the Company has not completed its
valuation of all of its purchases and, accordingly, the purchase price
allocations are subject to change when additional information concerning asset
and liability valuations are completed. The preliminary purchase price
allocations that are subject to change primarily consists of rental and non-
rental equipment valuations. These allocations are finalized within 12 months
of the acquisition date and are not expected to result in significant
differences between the preliminary and final allocations.

  The following table summarizes, on an unaudited pro forma basis, the results
of operations of the Company for the six months ended June 30, 2000 as though
each acquisition which was consummated during the period January 1, 2000 to
June 30, 2001 as mentioned above and in Note 3 to the Notes to Consolidated
Financial Statements included in the Company's 2000 Annual Report on Form 10-K
was made on January 1, 2000 (in thousands, except per share data):

<TABLE>
     <S>                                                             <C>
     Revenues....................................................... $1,455,247
     Net income..................................................... $   71,418
     Basic earnings per share....................................... $     0.98
     Diluted earnings per share..................................... $     0.77
</TABLE>


                                      10
<PAGE>

                             UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

  Since the acquisitions made during the six months ended June 30, 2001 had an
insignificant impact on the Company's pro forma results of operations, the pro
forma results of operations for the six months ended June 30, 2001 are not
shown.

  The unaudited pro forma results are based upon certain assumptions and
estimates, which are subject to change. These results are not necessarily
indicative of the actual results of operations that might have occurred, nor
are they necessarily indicative of expected results in the future.

3. Restructuring Charge

  During the second quarter of 2001, the Company recorded a restructuring
charge of approximately $28.9 million. The charge primarily relates to the
closure or consolidation of underperforming branches and administrative
offices, a reduction in the Company's workforce, and certain information
technology project costs. Approximately $10.9 million of the charge is non-
cash. Approximately $3.2 million has been paid during the second quarter of
2001. Of the remaining $14.8 million of this charge, approximately $8.6
million will be paid by December 31, 2001 and approximately $6.2 million will
be paid in future periods.

  Components of the restructuring charge are as follows:

<TABLE>
<CAPTION>
                                                                        Balance
                                             Restructuring Activity in  June 30,
                                                Charge         2001       2001
                                             ------------- ------------ --------
   <S>                                       <C>           <C>          <C>
   Costs to vacate facilities...............    $18,291      $ 9,779    $ 8,512
   Workforce reduction costs................      5,666        1,296      4,370
   Information technology costs.............      4,965        3,042      1,923
                                                -------      -------    -------
                                                $28,922      $14,117    $14,805
                                                =======      =======    =======
</TABLE>

  Under the restructuring plan, 31 underperforming branches and five
administrative offices will be closed or consolidated, the Company's workforce
will be reduced by 489 through the termination of branch and administrative
personnel (including 437 terminated as of June 30, 2001), and certain
information technology hardware and software will no longer be used. The
employee termination costs primarily represent severance. The costs to vacate
facilities primarily represent the payment of obligations under leases offset
by estimated sublease opportunities ($9.9 million), the write-off of capital
improvements made to such facilities ($2.8 million) and the write-off of
related goodwill ($5.6 million). As of June 30, 2001, 18 of the 31
underperforming branches have been closed or consolidated and the remaining 13
underperforming branches will be closed or consolidated by December 31, 2001.
The information technology costs represent the abandonment of certain
information technology projects ($2.5 million) and the payment of obligations
under equipment leases relating to such projects ($2.5 million).

4. Refinancing of Debt

  In April 2001, URI issued $450.0 million aggregate principal amount of 10
3/4% senior notes. Concurrent with the issuance of the senior notes, URI
entered into a new senior secured credit facility. The new credit facility is
comprised of a $750.0 million term loan and a $750.0 million revolving credit
facility. The proceeds from the new senior notes and new senior secured credit
facility were used to refinance outstanding secured indebtedness of
approximately $1,664.5 million and obligations under a synthetic lease of
$31.2 million. As a result of the refinancing, the Company recorded an
extraordinary charge of approximately $18.1 million ($11.3 million, net of
tax), primarily related to the write-off of financing fees, and a charge of
approximately $7.8 million recorded in other (income) expense, net related to
refinancing costs of the synthetic lease.


                                      11
<PAGE>

                             UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

  10 3/4% Senior Notes. On April 20, 2001, URI sold $450 million aggregate
principal amount of 10 3/4% Senior Notes Due 2008. The net proceeds from the
sale of the notes were approximately $439.9 million (after deducting the
initial purchasers' discount and offering expenses). The notes mature on April
15, 2008. The notes are unsecured and are guaranteed by Holdings and by URI's
domestic subsidiaries. URI may, at its option, redeem the notes on or after
April 15, 2005, at specified redemption prices which range from 105.375% in
2005 to 100.0% in 2007 and thereafter. In addition, on or prior to April 15,
2004, URI may, at its option, use the proceeds of a public equity offering to
redeem up to 35% of the outstanding notes, at a redemption price of 110.75%.
The indenture governing the notes contains certain restrictive covenants,
including limitations on (i) additional indebtedness, (ii) restricted
payments, (iii) liens, (iv) dividends and other payments, (v) preferred stock
of certain subsidiaries, (vi) transactions with affiliates, (vii) the
disposition of proceeds of asset sales and (viii) the Company's ability to
consolidate, merge or sell all or substantially all of its assets.

  New Revolving Credit Facility. The revolving credit facility enables URI to
borrow up to $750 million on a revolving basis and enables one of its Canadian
subsidiaries to borrow up to $40 million (provided that the aggregate
borrowings of URI and the Canadian subsidiary may not exceed $750 million). Up
to $100 million of the revolving credit facility is available in the form of
letters of credit. The revolving credit facility will mature and terminate on
October 20, 2006.

  Borrowings under the revolving credit facility will until October 20, 2001,
accrue interest, at our option, at either (A) the ABR Rate (which is equal to
the greater of (i) the Federal Funds Rate plus 0.5% or (ii) the Chase
Manhattan Bank's prime rate) plus a margin of 1.00% or (B) an adjusted LIBOR
rate plus a margin of 2.0%. From and after October 20, 2001, the above
interest rate margins will be adjusted quarterly based on our financial
leverage ratio, up to maximum margins of 1.75% and 2.75%, for revolving loans
based on the ABR rate and the adjusted LIBOR rate, respectively, and down to
minimum margins of 0.75% and 1.75%, for revolving loans based on the ABR rate
and the adjusted LIBOR rate, respectively.

  Borrowings by the Canadian subsidiary under the revolving credit facility
will until October 20, 2001, accrue interest, at such subsidiary's option, at
either (X) the Prime rate (which is equal to the Chase Manhattan Bank of
Canada's prime rate) plus a margin of 1.00% or (Y) the B/A rate (which is
equal to the Chase Manhattan Bank of Canada's B/A rate) plus a margin of 2.0%.
From and after October 20, 2001, the above interest rate margins will be
adjusted quarterly based on our financial leverage ratio, up to maximum
margins of 1.75% and 2.75%, for revolving loans based on the Prime rate and
the B/A rate, respectively, and down to minimum margins of 0.75% and 1.75%,
for revolving loans based on the Prime rate and the B/A rate, respectively.

  If at any time an event of default exists, the interest rate applicable to
each loan will increase by 2% per annum.

  The Company is also required to pay the lenders a commitment fee equal to
0.5% per annum in respect of undrawn commitments under the revolving credit
facility.

  New Term Loan. On April 20, 2001, URI obtained a $750 million term loan.
Amounts repaid in respect of the term loan may not be reborrowed. URI must
repay the principal of the term loan in installments, over six and one-half
years, as follows: (i) on June 30, 2001 and on the last day of each calendar
quarter thereafter up to and including September 30, 2006, URI must repay $1.9
million and (ii) on the last day of each calendar quarter thereafter up to and
including September 30, 2007, URI must repay $177.2 million.

  Borrowings under the term loan accrue interest, at our option, at either (a)
the ABR rate (which is equal to the greater of (i) the Federal Funds Rate plus
0.5% or (ii) the Chase Manhattan Bank's prime rate) plus a margin of 2.0%, or
(b) an adjusted LIBOR rate plus a margin of 3.0%.


                                      12
<PAGE>

                             UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

  Covenants. The agreements governing the new senior secured credit facility
contain certain covenants that requires the Company to, among other things,
satisfy certain financial tests relating to: (a) the ratio of senior debt to
cash flow, (b) minimum interest coverage ratio, (c) the ratio of funded debt
to cash flow, and (d) the ratio of senior debt to tangible assets. These
agreements also contain various other covenants that restrict the Company's
ability to, among other things, (i) incur additional indebtedness, (ii) permit
liens to attach to its assets, (iii) pay dividends or make other restricted
payments on its common stock and certain other securities and (iv) make
acquisitions unless certain financial conditions are satisfied.

  Security and Guarantees. URI's obligations under the new senior secured
facility are, subject to limited exceptions, (i) guaranteed by Holdings and
URI's United States subsidiaries and (ii) secured by substantially all of
URI's assets, the stock of URI and the stock of Holding's other United States
subsidiaries and a portion of the stock of Holding's Canadian subsidiaries.
The obligations of the Canadian subsidiary that may borrow under the revolving
credit facility are guaranteed by our other Canadian subsidiaries and secured
by substantially all of the assets of this Canadian subsidiary and the stock
of its subsidiaries.

5. Receivables Securitization

  During the quarter ended June 30, 2001, the Company obtained an additional
$112.0 million in cash through the securitization of certain of its accounts
receivable through its existing $250.0 million receivable securitization
facility. In the securitization transactions, the Company transferred accounts
receivable to a special purpose vehicle (the "SPV"), which in turn pledged
those receivables to secure borrowings that the SPV incurred to finance its
acquisition of those receivables. The borrowings generally accrue interest at
the blended commercial paper rate for commercial paper issued by Gramercy
Capital Corporation to fund such borrowings plus a margin of 0.75% per annum.
The SPV's borrowings are an obligation of the SPV and not of the Company or
URI, and the lenders' recourse in respect of the borrowings is generally
limited to collections that the SPV receives on the receivables. Collections
on the receivables are used to service the borrowings. From time to time prior
to June 2002, subject to certain conditions, collections from the receivables
may be reinvested by the SPV in additional accounts receivable originated by
the Company. Subject to certain conditions, the term of the receivables
securitization may be extended until December 2003. As of June 30, 2001,
approximately $212.0 million of borrowings was outstanding under the
receivables securitization facility.

                                      13
<PAGE>

                             UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

6. Earnings Per Share

  The following table sets forth the computation of basic and diluted earnings
per share (in thousands, except per share data):
<TABLE>
<CAPTION>
                                                  Six Months     Three Months
                                                     Ended           Ended
                                                   June 30,        June 30,
                                                --------------- ---------------
                                                 2001    2000    2001    2000
                                                ------- ------- ------- -------
<S>                                             <C>     <C>     <C>     <C>
Numerator:
  Income before extraordinary item............. $28,347 $64,610 $24,935 $47,199
Denominator:
  Denominator for basic earnings per share--
   weighted-average shares.....................  71,026  71,844  71,318  71,631
  Effect of dilutive securities:
    Employee stock options.....................   1,850   1,144   2,404   1,024
    Warrants...................................   3,056   2,435   3,433   2,303
    Series A perpetual convertible preferred
     stock.....................................  12,000  12,000  12,000  12,000
    Series B perpetual convertible preferred
     stock.....................................   5,000   5,000   5,000   5,000
                                                ------- ------- ------- -------
  Denominator for diluted earnings per share--
   adjusted weighted-average shares............  92,932  92,423  94,155  91,958
                                                ======= ======= ======= =======
Earnings per share-basic:
  Income before extraordinary item............. $  0.40 $  0.90 $  0.35 $  0.66
  Extraordinary item, net......................    0.16            0.16
                                                ------- ------- ------- -------
  Net Income................................... $  0.24 $  0.90 $  0.19 $  0.66
                                                ======= ======= ======= =======
Earnings per share-diluted:
  Income before extraordinary item............. $  0.31 $  0.70 $  0.27 $  0.51
  Extraordinary item, net...................... $  0.13         $  0.13
                                                ======= ======= ======= =======
  Net income................................... $  0.18 $  0.70 $  0.14 $  0.51
                                                ======= ======= ======= =======
</TABLE>

7. Stock Plans

  2001 Senior Stock Plan. In June 2001, the Company's shareholders approved
the adoption of the 2001 Senior Stock Plan. This plan provides for the
awarding of common stock and other equity-linked awards to our officers and
directors. The maximum number of shares of common stock that can be issued
under the plan is 4,000,000. The Company records each share that is awarded
under this plan at an amount no less than 100% of the fair market value per
share at the date of the award. No shares may be awarded under this plan after
June 5, 2011. As of June 30, 2001, 2,015,000 shares had been awarded under
this plan. Determinations concerning the persons to receive awards, the form,
amount and timing of such awards and terms and provisions of such awards are
made by the Board of Directors (or a committee appointed by the Board of
Directors).

  2001 Stock Plan. In March 2001, the Company adopted the 2001 Stock Plan.
This plan provides for the awarding of common stock and other equity-linked
awards to certain employees (other than officers and directors) and others who
render services to the Company. The maximum number of shares of common stock
that can be issued under the plan is 2,000,000. The Company records each share
that is awarded under this plan at an amount no less than 100% of the fair
market value per share at the date of the award. No shares may be awarded
under this plan after March 23, 2011. As of June 30, 2001, 752,041 shares had
been awarded under this plan. Determinations concerning the persons to receive
awards, the form, amount and timing of such awards and

                                      14
<PAGE>

                             UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

terms and provisions of such awards are made by the Board of Directors (or a
committee appointed by the Board of Directors).

  The Company records the issuance of restricted shares at the quoted market
price on the date of the grants. Amortization of deferred compensation is then
recognized on a straight-line basis over the related vesting period.

8. Comprehensive Income

  The following table sets forth the Company's comprehensive income (in
thousands):

<TABLE>
<CAPTION>
                                                Six Months      Three Months
                                                   Ended            Ended
                                                 June 30,         June 30,
                                              ---------------- ---------------
                                               2001     2000    2001    2000
                                              -------  ------- ------- -------
   <S>                                        <C>      <C>     <C>     <C>
   Net income................................ $17,030  $64,610 $13,618 $47,199
   Other comprehensive gain (loss):
     Foreign currency translation
      adjustment.............................  (3,448)     342   8,565   1,112
     Cumulative effect on equity of adopting
      FAS 133................................  (2,516)
     Derivatives qualifying as hedges........  (1,813)             627
                                              -------  ------- ------- -------
   Comprehensive income...................... $ 9,253  $64,952 $22,810 $48,311
                                              =======  ======= ======= =======
</TABLE>

9. Derivative Financial Instruments

  The FASB issued, and subsequently amended, SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities", which became effective for the
Company on January 1, 2001. Under SFAS No. 133, all derivatives are required
to be recorded as assets or liabilities and measured at fair value. Gains or
losses resulting from changes in the values of derivatives are recognized
immediately or deferred, depending on the use of the derivative and whether or
not it qualifies as a hedge.

  The Company occasionally uses derivative financial instruments to manage its
risk associated with fluctuations in interest rates on its debt. As of June
30, 2001, the Company had outstanding interest rate swap agreements that
converts a portion, or $200.0 million, of its variable rate term loan to a
fixed rate instrument through 2003. These swap agreements are designated as
cash flow hedges and changes in fair value of the hedges are recorded in other
comprehensive income and reclassified into earnings in the same periods during
which the hedged transaction affects earnings. There is no ineffectiveness
related to these hedges.

                                      15
<PAGE>

                              UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

10. Condensed Consolidating Financial Information of Guarantor Subsidiaries

  Certain indebtedness of URI, a wholly-owned subsidiary of Holdings (the
"Parent"), is guaranteed by URI's United States subsidiaries (the "guarantor
subsidiaries") and, in certain cases, also by Parent. However, this
indebtedness is not guaranteed by URI's foreign subsidiaries (the "non-
guarantor subsidiaries"). The guarantor subsidiaries are all wholly owned and
the guarantees are made on a joint and several basis and are full and
unconditional (subject to subordination provisions and subject to a standard
limitation which provides that the maximum amount guaranteed by each guarantor
will not exceed the maximum amount that can be guaranteed without making the
guarantee void under fraudulent conveyance laws). Separate consolidated
financial statements of the guarantor subsidiaries have not been presented
because management believes such information would not be material to
investors. However, condensed consolidating financial information as of June
30, 2001 and December 31, 2000 and for the six and three months ended June 30,
2001 and 2000, are presented. The condensed consolidating financial information
of URI and its subsidiaries are as follows:

                     CONDENSED CONSOLIDATING BALANCE SHEET

<TABLE>
<CAPTION>
                                                              June 30, 2001
                                      ----------------------------------------------------------------
                                                                   Non-
                                                   Guarantor    Guarantor    Other and    Consolidated
                              Parent     URI      Subsidiaries Subsidiaries Eliminations     Total
                              ------  ----------  ------------ ------------ ------------  ------------
                                                       (In thousands)
<S>                       <C>         <C>         <C>          <C>          <C>           <C>
ASSETS
Cash and cash equiva-
 lents..................                           $   30,586   $   5,549                  $   36,135
Accounts receivable,
 net....................              $   59,479      324,470     106,606                     490,555
Intercompany receivable
 (payable)..............                 211,682       49,370    (261,052)
Inventory...............                  52,232       56,973       5,365                     114,570
Prepaid expenses and
 other assets...........                  54,508      119,215       1,176   $     8,986       183,885
Rental equipment, net...                 956,034      768,444     126,926                   1,851,404
Property and equipment,
 net....................  $   35,111     143,055      233,614      16,796                     428,576
Investment in subsidiar-
 ies....................   1,814,909   2,330,924                             (4,145,833)
Intangible assets, net..                 869,416    1,209,403     130,702                   2,209,521
                          ----------  ----------   ----------   ---------   -----------    ----------
                          $1,850,020  $4,677,330   $2,792,075   $ 132,068   $(4,136,847)   $5,314,646
                          ==========  ==========   ==========   =========   ===========    ==========
LIABILITIES AND STOCK-
 HOLDER'S EQUITY
Liabilities:
 Accounts payable.......              $   71,448   $  222,935   $  17,631                  $  312,014
 Debt...................  $  300,000   2,523,718      214,768      21,262   $  (300,000)    2,759,748
 Deferred income tax-
  es....................                 230,056           50                                 230,106
 Accrued expenses and
  other liabilities.....       9,255      42,280       93,864      13,681        12,933       172,013
                          ----------  ----------   ----------   ---------   -----------    ----------
   Total liabilities....     309,255   2,867,502      531,617      52,574      (287,067)    3,473,881
Commitments and contin-
 gencies
Company-obligated
 mandatorily redeemable
 convertible preferred
 securities of a
 subsidiary trust.......                                                        300,000       300,000
Series A and B preferred
 stock..................     430,800                                                          430,800
Stockholders' equity:
 Common stock...........         732                                                              732
 Additional paid-in
  capital...............     810,332   1,496,393    1,838,411      65,901    (3,400,705)      810,332
 Deferred compensa-
  tion..................     (59,255)                                                         (59,255)
 Retained earnings......     372,880     317,764      422,047      23,988      (763,799)      372,880
 Accumulated other com-
  prehensive income.....     (14,724)     (4,329)                 (10,395)       14,724       (14,724)
                          ----------  ----------   ----------   ---------   -----------    ----------
   Total stockholders'
    equity..............   1,109,965   1,809,828    2,260,458      79,494    (4,149,780)    1,109,965
                          ----------  ----------   ----------   ---------   -----------    ----------
                          $1,850,020  $4,677,330   $2,792,075    $132,068   $(4,136,847)   $5,314,646
                          ==========  ==========   ==========   =========   ===========    ==========
</TABLE>

                                       16
<PAGE>

                              UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS


<TABLE>
<CAPTION>
                                                      December 31, 2000
                          ---------------------------------------------------------------------------
                                                                  Non-
                                                  Guarantor    Guarantor    Other and    Consolidated
                            Parent       URI     Subsidiaries Subsidiaries Eliminations     Total
                          ----------  ---------- ------------ ------------ ------------  ------------
                                                 (In thousands)
<S>                       <C>         <C>        <C>          <C>          <C>           <C>
Assets
Cash and cash equiva-
 lents..................                          $   29,733   $   4,651                  $   34,384
Accounts receivable,
 net....................              $  216,444     143,295     109,855                     469,594
Intercompany receivable
 (payable)..............                 319,423     (55,187)   (264,236)
Inventory...............                  54,022      73,979       5,379                     133,380
Prepaid expenses and
 other assets...........                  28,263      75,633         597                     104,493
Rental equipment, net...                 837,972     766,219     128,644                   1,732,835
Property and equipment,
 net....................  $   34,807     139,871     231,195      16,366                     422,239
Investment in subsidiar-
 ies....................   1,839,952   2,257,692                           $(4,097,644)
Intangible assets, net..                 960,444   1,132,438     134,126                   2,227,008
                          ----------  ----------  ----------   ---------   -----------    ----------
                          $1,874,759  $4,814,131  $2,397,305   $ 135,382   $(4,097,644)   $5,123,933
                          ==========  ==========  ==========   =========   ===========    ==========
Liabilities and Stock-
 holder's Equity
Liabilities:
 Accounts payable.......              $   78,623  $  165,677   $  15,855                  $  260,155
 Debt...................  $  300,000   2,647,144       3,484      24,739   $  (300,000)    2,675,367
 Deferred income tax-
  es....................                 186,091      20,702        (550)                    206,243
 Accrued expenses and
  other liabilities.....      28,816      86,560      18,862      13,750       (11,763)      136,225
                          ----------  ----------  ----------   ---------   -----------    ----------
   Total liabilities....     328,816   2,998,418     208,725      53,794      (311,763)    3,277,990
Commitments and contin-
 gencies
Company-obligated
 mandatorily redeemable
 convertible preferred
 securities of a
 subsidiary trust.......                                                       300,000       300,000
Series A and B preferred
 stock..................     430,800                                                         430,800
Stockholders' equity:
 Common stock...........         711                                                             711
 Additional paid-in
 capital................     765,529   1,488,238   1,830,500      65,657    (3,384,395)      765,529
 Retained earnings......     355,850     327,475     358,080      22,878      (708,433)      355,850
 Accumulated other com-
 prehensive loss........      (6,947)                             (6,947)        6,947        (6,947)
                          ----------  ----------  ----------   ---------   -----------    ----------
   Total stockholders'
    equity..............   1,115,143   1,815,713   2,188,580      81,588    (4,085,881)    1,115,143
                          ----------  ----------  ----------   ---------   -----------    ----------
                          $1,874,759  $4,814,131  $2,397,305   $ 135,382   $(4,097,644)   $5,123,933
                          ==========  ==========  ==========   =========   ===========    ==========
</TABLE>

                                       17
<PAGE>

                              UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS



<TABLE>
<CAPTION>
                                         For the Six Months Ended June 30, 2001
                          -----------------------------------------------------------------------
                                                               Non-
                                               Guarantor    Guarantor    Other and   Consolidated
                           Parent     URI     Subsidiaries Subsidiaries Eliminations    Total
                          --------  --------  ------------ ------------ ------------ ------------
                                                     (In thousands)
<S>                       <C>       <C>       <C>          <C>          <C>          <C>
Revenues:
 Equipment rentals......            $446,995    $549,950     $46,805                  $1,043,750
 Sales of rental equip-
  ment..................              33,722      32,104       6,413                      72,239
  Sales of equipment and
   merchandise and other
   revenues.............             127,949     128,094      15,085                     271,128
                          --------  --------    --------     -------      --------    ----------
Total revenues..........             608,666     710,148      68,303                   1,387,117
Cost of revenues:
 Cost of equipment rent-
  als, excluding
  depreciation..........             191,408     284,455      24,273                     500,136
 Depreciation of rental
  equipment.............              77,870      70,337      10,147                     158,354
 Cost of rental equip-
  ment sales............              21,190      17,387       3,804                      42,381
 Cost of equipment and
  merchandise sales and
  other operating
  costs.................              95,705      90,819      11,092                     197,616
                          --------  --------    --------     -------      --------    ----------
Total cost of revenues..             386,173     462,998      49,316                     898,487
                          --------  --------    --------     -------      --------    ----------
Gross profit............             222,493     247,150      18,987                     488,630
Selling, general and
 administrative
 expenses...............              94,457     114,886      12,372                     221,715
Restructuring charge....              28,922                                              28,922
Non-rental depreciation
 and amortization.......  $  4,286    20,291      25,725       2,936                      53,238
                          --------  --------    --------     -------      --------    ----------
Operating income
 (loss).................    (4,286)   78,823     106,539       3,679                     184,755
Interest expense........     9,750   107,825       6,046         718      $ (9,750)      114,589
Preferred dividends of a
 subsidiary trust.......                                                     9,750         9,750
Other (income) expense,
 net....................              14,725      (8,853)      1,063                       6,935
                          --------  --------    --------     -------      --------    ----------
Income (loss) before
 provision (benefit) for
 income taxes and
 extraordinary item.....   (14,036)  (43,727)    109,346       1,898                      53,481
Provision (benefit) for
 income taxes...........    (6,270)  (14,763)     45,379         788                      25,134
                          --------  --------    --------     -------      --------    ----------
Income before extraordi-
 nary item and equity in
 net earnings of subsid-
 iaries.................    (7,766)  (28,964)     63,967       1,110                      28,347
Extraordinary item......              11,317                                              11,317
                          --------  --------    --------     -------      --------    ----------
Income (loss) before
 equity in net earnings
 of subsidiaries........    (7,766)  (40,281)     63,967       1,110                      17,030
Equity in net earnings
 of subsidiaries........    24,796    65,077                              $(89,873)
                          --------  --------    --------     -------      --------    ----------
Net income .............  $ 17,030  $ 24,796    $ 63,967     $ 1,110      $(89,873)   $   17,030
                          ========  ========    ========     =======      ========    ==========
</TABLE>

                                       18
<PAGE>

                              UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS


<TABLE>
<CAPTION>
                                          For the Six Months Ended June 30, 2000
                          ------------------------------------------------------------------------
                                               Guarantor   Non-Guarantor  Other and   Consolidated
                           Parent     URI     Subsidiaries Subsidiaries  Eliminations    Total
                           ------     ---     ------------ ------------- ------------ ------------
                                                      (In thousands)
<S>                       <C>       <C>       <C>          <C>           <C>          <C>
Revenues:
 Equipment rentals......            $378,801    $484,540      $48,291                  $  911,632
 Sales of rental
  equipment.............              74,484      68,315       12,372                     155,171
 Sales of equipment and
  merchandise and other
  revenues..............             112,041     114,201       15,863                     242,105
                          --------  --------    --------      -------     ---------    ----------
Total revenues..........             565,326     667,056       76,526                   1,308,908
Cost of revenues:
 Cost of equipment
  rentals, excluding
  depreciation..........             162,317     211,389       22,908                     396,614
 Depreciation of rental
  equipment.............              70,016      79,670        9,349                     159,035
 Cost of rental
  equipment sales.......              43,989      39,471        7,708                      91,168
 Cost of equipment and
  merchandise sales and
  other operating
  costs.................              91,840      79,645       12,824                     184,309
                          --------  --------    --------      -------     ---------    ----------
Total cost of revenues..             368,162     410,175       52,789                     831,126
                          --------  --------    --------      -------     ---------    ----------
Gross profit............             197,164     256,881       23,737                     477,782
Selling, general and
 administrative
 expenses...............              92,687     106,523       11,759                     210,969
Non-rental depreciation
 and amortization.......  $  3,566    17,912      16,597        2,646                      40,721
                          --------  --------    --------      -------     ---------    ----------
Operating income........    (3,566)   86,565     133,761        9,332                     226,092
Interest expense........     9,750   104,617         195        1,398     $  (9,750)      106,210
Preferred dividends of a
 subsidiary trust.......                                                      9,750         9,750
Other (income) expense,
 net....................               3,929      (4,422)         181                        (312)
                          --------  --------    --------      -------     ---------    ----------
Income (loss) before
 provision for income
 taxes..................   (13,316)  (21,981)    137,988        7,753                     110,444
Provision (benefit) for
 income taxes...........    (5,575)   (9,122)     57,265        3,266                      45,834
                          --------  --------    --------      -------     ---------    ----------
Income (loss) before
 equity in net earnings
 of subsidiaries........    (7,741)  (12,859)     80,723        4,487                      64,610
Equity in net earnings
 of subsidiaries........    72,351    85,210                              $(157,561)
                          --------  --------    --------      -------     ---------    ----------
Net income..............  $ 64,610  $ 72,351    $ 80,723      $ 4,487     $(157,561)   $   64,610
                          ========  ========    ========      =======     =========    ==========
</TABLE>

                                       19
<PAGE>

                              UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                                        For the Three Months Ended June 30, 2001
                          ----------------------------------------------------------------------
                                                              Non-
                                              Guarantor    Guarantor    Other and   Consolidated
                          Parent     URI     Subsidiaries Subsidiaries Eliminations    Total
                          -------  --------  ------------ ------------ ------------ ------------
                                                     (In thousands)
<S>                       <C>      <C>       <C>          <C>          <C>          <C>
Revenues:
 Equipment rentals......           $239,522    $316,596     $26,250                   $582,368
 Sales of rental equip-
  ment..................              5,527      24,045       3,545                     33,117
  Sales of equipment and
   merchandise and other
   revenues.............             71,408      73,444       7,676                    152,528
                          -------  --------    --------     -------      --------     --------
Total revenues..........            316,457     414,085      37,471                    768,013
Cost of revenues:
 Cost of equipment
  rentals, excluding
  depreciation..........             92,597     164,780      12,726                    270,103
 Depreciation of rental
  equipment.............             40,459      36,041       5,053                     81,553
 Cost of rental equip-
  ment sales............              4,606      12,485       2,214                     19,305
 Cost of equipment and
  merchandise sales and
  other operating
  costs.................             53,033      52,311       5,645                    110,989
                          -------  --------    --------     -------      --------     --------
Total cost of revenues..            190,695     265,617      25,638                    481,950
                          -------  --------    --------     -------      --------     --------
Gross profit............            125,762     148,468      11,833                    286,063
Selling, general and
 administrative
 expenses...............             46,208      60,278       6,336                    112,822
Restructuring charge....             28,922                                             28,922
Non-rental depreciation
 and amortization.......  $ 2,222     9,454      13,969       1,486                     27,131
                          -------  --------    --------     -------      --------     --------
Operating income........   (2,222)   41,178      74,221       4,011                    117,188
Interest expense........    4,875    50,978       5,610         471      $ (4,875)      57,059
Preferred dividends of a
 subsidiary trust.......                                                    4,875        4,875
Other (income) expense,
 net....................              8,525      (1,468)        548                      7,605
                          -------  --------    --------     -------      --------     --------
Income (loss) before
 provision for income
 taxes and extraordinary
 item...................   (7,097)  (18,325)     70,079       2,992                     47,649
Provision (benefit) for
 income taxes...........   (3,390)   (4,221)     29,083       1,242                     22,714
                          -------  --------    --------     -------      --------     --------
Income before extraordi-
 nary item and equity in
 net earnings of subsid-
 iaries.................   (3,707)  (14,104)     40,996       1,750                     24,935
Extraordinary item......             11,317                                             11,317
                          -------  --------    --------     -------      --------     --------
Income (loss) before
 equity in net earnings
 of subsidiaries........   (3,707)  (25,421)     40,996       1,750                     13,618
Equity in net earnings
 of subsidiaries........   17,325    42,746                              $(60,071)
                          -------  --------    --------     -------      --------     --------
Net income .............  $13,618  $ 17,325    $ 40,996     $ 1,750      $(60,071)    $ 13,618
                          =======  ========    ========     =======      ========     ========
</TABLE>

                                       20
<PAGE>

                              UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
                                        For the Three Months Ended June 30, 2000
                          ---------------------------------------------------------------------
                                                             Non-
                                              Gurantor    Guarantor    Other and   Consolidated
                          Parent     URI    Subsidiaries Subsidiaries Eliminations    Total
                          -------  -------- ------------ ------------ ------------ ------------
                                                     (In thousands)
<S>                       <C>      <C>      <C>          <C>          <C>          <C>
Revenues:
 Equipment rentals......           $212,902   $271,802     $26,830                   $511,534
 Sales of rental
  equipment.............             31,500     47,444       5,895                     84,839
 Sales of equipment and
  merchandise and other
  revenues..............             65,415     59,722       8,436                    133,573
                          -------  --------   --------     -------     ---------     --------
Total revenues..........            309,817    378,968      41,161                    729,946
Cost of revenues:
 Cost of equipment
  rentals, excluding
  depreciation..........             84,062    126,661      11,591                    222,314
 Depreciation of rental
  equipment.............             36,928     43,798       4,806                     85,532
 Cost of rental
  equipment sales.......             17,848     28,830       3,404                     50,082
 Cost of equipment and
  merchandise sales and
  other operating
  costs.................             52,782     40,833       6,605                    100,220
                          -------  --------   --------     -------     ---------     --------
Total cost of revenues..            191,620    240,122      26,406                    458,148
                          -------  --------   --------     -------     ---------     --------
Gross profit............            118,197    138,846      14,755                    271,798
Selling, general and
 administrative
 expenses...............             48,535     54,065       6,519                    109,119
Non-rental depreciation
 and amortization.......  $ 1,865     8,653      8,813       1,372                     20,703
                          -------  --------   --------     -------     ---------     --------
Operating income........   (1,865)   61,009     75,968       6,864                    141,976
Interest expense........    4,875    55,949         35         543     $  (4,875)      56,527
Preferred dividends of a
 subsidiary trust.......                                                   4,875        4,875
Other (income) expense,
 net....................              2,156     (2,698)        434                       (108)
                          -------  --------   --------     -------     ---------     --------
Income (loss) before
 provision (benefit) for
 income taxes...........   (6,740)    2,904     78,631       5,887                     80,682
Provision (benefit) for
 income taxes...........   (2,797)    1,205     32,661       2,414                     33,483
                          -------  --------   --------     -------     ---------     --------
Income (loss) before
 equity in net earnings
 of subsidiaries........   (3,943)    1,699     45,970       3,473                     47,199
Equity in net earnings
 of subsidiaries........   51,142    49,443                             (100,585)
                          -------  --------   --------     -------     ---------     --------
Net income..............  $47,199  $ 51,142   $ 45,970     $ 3,473     $(100,585)    $ 47,199
                          =======  ========   ========     =======     =========     ========
</TABLE>

                                       21
<PAGE>

                              UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                 CONDENSED CONSOLIDATING CASH FLOW INFORMATION
<TABLE>
<CAPTION>
                                           For the Six Months Ended June 30, 2001
                          --------------------------------------------------------------------------
                                                 Guarantor   Non-guarantor  Other and
                          Parent      URI      Subsidiaries  Subsidiaries  Eliminations Consolidated
                          -------  ----------  ------------- ------------- ------------ ------------
                                                       (In thousands)
<S>                       <C>      <C>         <C>           <C>           <C>          <C>
Net cash provided by
 (used in) operating
 activities.............  $(4,007) $  205,885     $78,440       $18,137                  $  298,455
Cash flows from
 investing activities:
 Purchases of rental
  equipment.............             (199,566)    (89,546)      (14,169)                   (303,281)
 Purchases of property
  and equipment.........   (3,603)     (6,627)    (18,907)       (2,289)                    (31,426)
 Proceeds from sales of
  rental equipment......               33,722      32,104         6,413                      72,239
 Capital contributed to
  subsidiary............   (8,155)                                           $ 8,155
 Purchases of other
  companies.............              (36,983)                     (818)                    (37,801)
 In-process acquisition
  costs.................   (2,140)                                                           (2,140)
                          -------  ----------     -------       -------      -------     ----------
   Net cash used in
    investing
    activities..........  (13,898)   (209,454)    (76,349)      (10,863)       8,155       (302,409)
Cash flows from
 financing activities:
 Proceeds from debt.....            1,979,144          11                                 1,979,155
 Payments of debt.......           (1,922,168)     (1,249)       (2,865)                 (1,926,282)
 Payments of financing
  costs.................              (27,055)                      (63)                    (27,118)
 Capital contributions
  by parent.............                8,155                                 (8,155)
 Dividend distributions
  to parent.............              (34,507)                                34,507
 Shares repurchased and
  retired...............  (24,758)                                                          (24,758)
 Proceeds from the
  exercise of common
  stock options.........    8,156                                                             8,156
 Proceeds from the
  dividends from
  subsidiary............   34,507                                            (34,507)
                          -------  ----------     -------       -------      -------     ----------
   Net cash provided by
    (used in) financing
    activities..........   17,905       3,569      (1,238)       (2,928)      (8,155)         9,153
 Effect of foreign
  exchange rates........                                         (3,448)                     (3,448)
                          -------  ----------     -------       -------      -------     ----------
 Net decrease in cash
  and cash
  equivalents...........                              853           898                       1,751
 Cash and cash
  equivalents at
  beginning of period...                           29,733         4,651                      34,384
                          -------  ----------     -------       -------      -------     ----------
 Cash and cash
  equivalents at end of
  period................                          $30,586       $ 5,549                  $   36,135
                          =======  ==========     =======       =======      =======     ==========
Supplemental disclosure
 of cash flow
 information:
   Cash paid for
    interest............  $ 9,750  $   94,892     $ 4,562       $   819                  $  110,023
   Cash paid for income
    taxes, net of
    refunds.............           $    1,584                   $  (865)                 $      719
Supplemental disclosure
 of non-cash investing
 and financing
 activities:
The Company acquired the
 net assets and assumed
 certain liabilities of
 other companies as
 follows:
 Assets, net of cash
  acquired..............           $    4,624                   $   833                  $    5,457
 Liabilities assumed....                 (842)                     (194)                     (1,036)
 Less:
   Amounts paid through
    issuance of debt....                 (600)                                                 (600)
                          -------  ----------     -------       -------      -------     ----------
                                        3,182                       639                       3,821
 Due to seller and
  other payments........               33,801                       179                      33,980
                          -------  ----------     -------       -------      -------     ----------
   Net cash paid........           $   36,983                   $   818                  $   37,801
                          =======  ==========     =======       =======      =======     ==========
</TABLE>

                                       22
<PAGE>

                              UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                 CONDENSED CONSOLIDATING CASH FLOW INFORMATION

<TABLE>
<CAPTION>
                                     For the Six Months Ended June 30, 2000
                          --------------------------------------------------------------
                                                  Guarantor   Non-guarantor  Other and
                           Parent      URI      Subsidiaries  Subsidiaries  Eliminations Consolidated
                          --------  ----------  ------------- ------------- ------------ ------------
                                                       (In thousands)
<S>                       <C>       <C>         <C>           <C>           <C>          <C>
Net cash provided by
 (used in) operating
 activities.............  $  1,117  $ (106,798)   $ 356,725     $ 11,772      $     9     $ 262,825
Cash flows from
 investing activities:
 Purchases of rental
  equipment.............              (127,778)    (368,805)     (17,234)                  (513,817)
 Purchases of property
  and equipment.........   (13,585)    (12,678)     (41,512)      (1,466)                   (69,241)
 Proceeds from sales of
  rental equipment......                74,484       68,315       12,372                    155,171
 Payments of contingent
  purchase price........                  (851)      (5,702)                                 (6,553)
 Purchases of other
  companies.............              (261,982)                   (3,102)                  (265,084)
 Capital contributed to
  subsidiary............       (96)                                                96
 In-process acquisition
  costs.................    (2,445)                                                          (2,445)
                          --------  ----------    ---------     --------      -------     ---------
   Net cash used in
    investing
    activities..........   (16,126)   (328,805)    (347,704)      (9,430)          96      (701,969)
Cash flows from
 financing activities:
 Proceeds from debt.....               357,250       19,653                                 376,903
 Payments of debt.......               (19,929)     (14,037)     (4,251)                    (38,217)
 Proceeds from sale-
  leaseback.............               147,515                                              147,515
 Payments of financing
  costs.................                (7,155)                                    (9)       (7,164)
 Capital contributions
  by parent.............                    96                                    (96)
 Dividend distributions
  to parent.............               (45,863)                                45,863
 Proceeds from the
  exercise of common
  stock options.........        96                                                               96
 Proceeds from
  dividends from
  subsidiary............    45,863                                            (45,863)
 Shares repurchased and
  retired...............   (30,950)                                                         (30,950)
                          --------  ----------    ---------     --------      -------     ---------
   Net cash provided by
    (used in) financing
    activities..........    15,009     431,914        5,616       (4,251)        (105)      448,183
 Effect of foreign
  exchange rates........                                             342                        342
                          --------  ----------    ---------     --------      -------     ---------
 Net increase
  (decrease) in cash
  and cash
  equivalents...........                (3,689)      14,637       (1,567)                     9,381
 Cash and cash
  equivalents at
  beginning of period...                 3,689       16,414        3,708                     23,811
                          --------  ----------    ---------     --------      -------     ---------
 Cash and cash
  equivalents at end of
  period................                          $  31,051     $  2,141                  $  33,192
                          ========  ==========    =========     ========      =======     =========
Supplemental disclosure
 of cash flow
 information:
   Cash paid for
    interest............  $  9,750  $   89,682    $     243     $  1,371                  $ 101,046
   Cash paid for income
    taxes...............            $   55,791                  $  6,929                  $  62,720
Supplemental disclosure
 of non-cash investing
 and
 financing activities:
The Company acquired the
 net assets and assumed
 certain liabilities of
 other companies as
 follows:
 Assets, net of cash
  acquired..............            $  387,989                  $  4,884                  $ 392,873
 Liabilities assumed....              (100,810)                   (1,782)                  (102,592)
 Less:
   Amounts paid through
    issuance of debt....               (25,197)                                            (25,197)
                          --------  ----------    ---------     --------      -------     ---------
     Net cash paid......            $  261,982                  $  3,102                  $ 265,084
                          ========  ==========    =========     ========      =======     =========
</TABLE>

                                       23
<PAGE>

                             UNITED RENTALS, INC.

       NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

11. Subsequent Events

  New Preferred Stock. On September 28, 2001, the Company entered into an
agreement effecting an exchange of the Company's outstanding Series A
Preferred for an equal number of shares of Series C Preferred and the exchange
of the Company's Series B Preferred for an equal number of shares of Series D
Preferred. Except as described below, the material terms of the new Series C
Preferred are the same as the old Series A Preferred and the material terms of
the new Series D Preferred are the same as the old Series B Preferred.

  The certificates of designation for the Series A Preferred and Series B
Preferred (the "Prior Preferred") provide that, upon the occurrence of a
Change of Control (as defined in these certificates of designation), the
Company is required to redeem the Prior Preferred. The term "Change of
Control," as defined in these certificates of designation, would have included
certain transactions that were disapproved by the Company's board. The
certificates of designation for Series C Preferred and Series D Preferred (the
"New Preferred") change these provisions by excluding from the definition of
"Change of Control" transactions that are defined as "Non-Approved Changes of
Control." In general, a Non-Approved Change of Control transaction is a change
of control transaction that the board has disapproved and which the board has
not facilitated by such actions as weakening or eliminating the Company's
Stockholder Rights Plan.

  If a Non-Approved Change of Control occurs, the holders of the New Preferred
obtain the following additional rights, but only if, prior to the transaction,
the board does not elect to offer the holders of the New Preferred essentially
the same redemption rights that apply to an approved Change of Control
transaction:

  .  The holders of the Series C Preferred would elect a majority of the
     board for a specified period and, during such period, the unanimous vote
     of the board would be required to approve any optional redemption of the
     New Preferred or to declare, pay, or change the accrual rate of, any
     dividends on the New Preferred.

  .  Upon liquidation, the holders of the New Preferred would receive, in
     addition to the liquidation preference and accrued dividends, an amount
     equal to 6.25% of the liquidation preference, compounded annually from
     the date the Series A Preferred was issued, in the case of the Series C
     Preferred, or the date the Series B was issued, in the case of the
     Series D Preferred, and ending on the date of the Non Approved Change of
     Control. In addition, after holders of the Common Stock have received
     the equivalent amount, the holders of the New Preferred would
     participate with the holders of the Common Stock in any remaining
     amounts available for distribution (based upon the number of shares of
     Common Stock into which such Preferred shares would then be
     convertible).

  .  Dividends would begin to accrue on the New Preferred. Accrued dividends
     would not be payable until liquidation or sale of the Company, unless
     the board by unanimous vote approves earlier payment. The dividend rate
     would be 10% per annum of the liquidation preference, compounded
     annually. If these dividends are not paid quarterly, additional
     dividends would accrue at the rate of 8% per annum of the liquidation
     preference, compounded annually. Any regular or additional dividends
     that are not paid quarterly would be added to the liquidation
     preference.

  Stockholders Rights Plan. The Company adopted a Stockholders Rights Plan on
September 28, 2001 (with a record date of October 19, 2001). This plan and
other provisions of the Company's charter and bylaws may have the effect of
deterring hostile takeovers or delaying or preventing changes in control or
management of the Company, including transactions in which the shareholders of
the Company might otherwise receive a premium for their shares over then
current market prices. The rights expire on September 27, 2011.

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<PAGE>

                                   SIGNATURES

  Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this amended report to be signed on its behalf by
the undersigned hereunto duly authorized.


                                          United Rentals, Inc.

Dated: October 9, 2001                        /s/ Michael J. Nolan
                                          By: _________________________________
                                               Michael J. Nolan
                                               Chief Financial Officer
                                               (Principal Financial Officer
                                               and Chief Accounting Officer)

                                          United Rentals (North America), Inc.

Dated: October 9, 2001                        /s/ Michael J. Nolan
                                          By: _________________________________
                                               Michael J. Nolan
                                               Chief Financial Officer
                                               (Principal Financial Officer
                                               and Chief Accounting Officer)


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