Leases (Tables)

3 Months Ended

Mar. 31, 2020

The tables below present financial information associated with our leases as of March 31, 2020 and December 31, 2019, and for the three months ended March 31, 2020 and 2019.



	Classification	March 31, 2020			December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	666		$	669
Finance lease assets	Rental equipment	296			286
	Less accumulated depreciation	(87		)	(89		)
	Rental equipment, net	209			197
	Property and equipment, net:
	Non-rental vehicles	8			8
	Buildings	18			18
	Less accumulated depreciation and amortization	(9		)	(15		)
	Property and equipment, net	17			11
Total leased assets		892			877
Liabilities
Current
Operating	Accrued expenses and other liabilities	177			178
Finance	Short-term debt and current maturities of long-term debt	49			58
Long-term
Operating	Operating lease liabilities	530			533
Finance	Long-term debt	97			69
Total lease liabilities		$	853		$	838

Lease, cost



Lease cost	Classification	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019
Operating lease cost (1)	Cost of equipment rentals, excluding depreciation (1)	$	92		$	89
	Selling, general and administrative expenses	3			3
	Restructuring charge	1			6
Finance lease cost
Amortization of leased assets	Depreciation of rental equipment	7			7
	Non-rental depreciation and amortization	—			1
Interest on lease liabilities	Interest expense, net	3			2
Sublease income (2)		(34		)	(38		)
Net lease cost		$	72		$	70

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(1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the three months ended, March 31, 2020 and 2019 includes $31 and $34, respectively, of short-term lease costs associated with equipment that we rent from vendors and then rent to our customers, as discussed further above. Apart from these costs, short-term lease costs are immaterial.

(2) Primarily reflects re-rent revenue as discussed further above.



Lease term and discount rate	March 31, 2020		December 31, 2019
Weighted-average remaining lease term (years)
Operating leases	4.8		4.8
Finance leases	3.2		3.2
Weighted-average discount rate
Operating leases	4.6	%	4.7	%
Finance leases	3.7	%	4.0	%



Other information	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	52	$	50
Operating cash flows from finance leases	3		2
Financing cash flows from finance leases	12		10
Leased assets obtained in exchange for new operating lease liabilities	48		75
Leased assets obtained in exchange for new finance lease liabilities	$	34	$	8

Lessee, operating lease, liability, maturity



Maturity of lease liabilities (as of March 31, 2020)	Operating leases (1)			Finance leases (2)
2020	$	157		$	45
2021	186			55
2022	149			31
2023	115			18
2024	81			2
Thereafter	103			6
Total	791			157
Less amount representing interest	(84		)	(11		)
Present value of lease liabilities	$	707		$	146

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(1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of March 31, 2020. The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate.

(2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate.

Finance lease, liability, maturity



Maturity of lease liabilities (as of March 31, 2020)	Operating leases (1)			Finance leases (2)
2020	$	157		$	45
2021	186			55
2022	149			31
2023	115			18
2024	81			2
Thereafter	103			6
Total	791			157
Less amount representing interest	(84		)	(11		)
Present value of lease liabilities	$	707		$	146

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(2) The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced, and such leases are not material in the aggregate.