Commitments and Contingencies

We are subject to a number of claims and proceedings that generally arise in the ordinary conduct of our business. These matters include, but are not limited to, general liability claims (including personal injury, product liability, and property and auto claims), indemnification and guarantee obligations, employee injuries and employment-related claims, self-insurance obligations and contract and real estate matters. Based on advice of counsel and available information, including current status or stage of proceeding, and taking into account accruals for matters where we have established them, we currently believe that any liabilities ultimately resulting from these ordinary course claims and proceedings will not, individually or in the aggregate, have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Indemnification

The Company indemnifies its officers and directors pursuant to indemnification agreements and may in addition indemnify these individuals as permitted by Delaware law.

Operating Leases

We lease rental equipment, real estate and certain office equipment under operating leases. Certain real estate leases require us to pay maintenance, insurance, taxes and certain other expenses in addition to the stated rental payments. Future minimum lease payments by year and in the aggregate, for non-cancelable operating leases with initial or remaining terms of one year or more are as follows at December 31, 2013:



	Real Estate Leases		Non-Rental Equipment Leases
2014	$	98	$	28
2015	87		29
2016	72		22
2017	54		21
2018	35		19
Thereafter	67		16
Total	$	413	$	135

Our real estate leases provide for varying terms, including customary escalation clauses. We evaluate our operating leases in accordance with GAAP. Our leases generally include default provisions that are customary, and do not contain material adverse change clauses, cross-default provisions or subjective default provisions. In these leases, the occurrence of an event of default is objectively determinable based on predefined criteria. Based on the facts and circumstances that existed at lease inception and with consideration of our history as a lessee, we believe that it is reasonable to assume that an event of default will not occur.

Rent expense under all non-cancelable real estate, rental equipment and other equipment operating leases totaled $135, $175 and $122 for the years ended December 31, 2013, 2012 and 2011, respectively.

Capital Leases

Capital lease obligations consist primarily of vehicle and building leases with periods expiring at various dates through 2028. Capital lease obligations were $120 and $148 at December 31, 2013 and 2012, respectively. The following table presents capital lease financial statement information for the years ended December 31, 2013, 2012 and 2011, except for balance sheet information, which is presented as of December 31, 2013 and 2012:



	2013			2012			2011
Depreciation of rental equipment	$	22		$	15		$	3
Non-rental depreciation and amortization	5			4			4
Rental equipment	171			167
Less accumulated depreciation	(38		)	(23		)
Rental equipment, net	133			144
Property and equipment, net:
Non-rental vehicles	18			23
Buildings	18			17
Less accumulated depreciation and amortization	(13		)	(9		)
Property and equipment, net	$	23		$	31

Future minimum lease payments for capital leases for each of the next five years and thereafter at December 31, 2013 are as follows:



2014	$	43
2015	36
2016	24
2017	13
2018	7
Thereafter	10
Total	133
Less amount representing interest (1)	(13		)
Capital lease obligations	$	120


(1)	The weighted average interest rate on our capital lease obligations as of December 31, 2013 was approximately 5.3 percent.

Employee Benefit Plans

We currently sponsor two defined contribution 401(k) retirement plans, which are subject to the provisions of the Employee Retirement Income Security Act of 1974. We also sponsor a deferred profit sharing plan for the benefit of the full-time employees of our Canadian subsidiaries. Under these plans, we match a percentage of the participants’ contributions up to a specified amount. Company contributions to the plans were $17, $11 and $6 in the years ended December 31, 2013, 2012 and 2011, respectively. The increase in Company contributions in 2013 from 2012 was primarily due to increased participation in the plans, including the impact of the RSC acquisition. The increase in Company contributions in 2012 from 2011 was primarily due to the impact of the RSC acquisition.

Environmental Matters

The Company and its operations are subject to various laws and related regulations governing environmental matters. Under such laws, an owner or lessee of real estate may be liable for the costs of removal or remediation of certain hazardous or toxic substances located on or in, or emanating from, such property, as well as investigation of property damage. We incur ongoing expenses associated with the removal of underground storage tanks and the performance of appropriate remediation at certain of our locations.