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Leases (Tables)

12 Months Ended

Dec. 31, 2020

The tables below present financial information associated with our leases. This information is only presented as of, and for the years ended, December 31, 2020 and December 31, 2019 because, as noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption.


	Classification	December 31, 2020		December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	688	$	669
Finance lease assets	Rental equipment	295		286
	Less accumulated depreciation	(86)		(89)
	Rental equipment, net	209		197
	Property and equipment, net:
	Non-rental vehicles	8		8
	Buildings	19		18
	Less accumulated depreciation and amortization	(11)		(15)
	Property and equipment, net	16		11
Total leased assets		913		877
Liabilities
Current
Operating	Accrued expenses and other liabilities	178		178
Finance	Short-term debt and current maturities of long-term debt	60		58
Long-term
Operating	Operating lease liabilities	549		533
Finance	Long-term debt	75		69
Total lease liabilities		$	862	$	838

Lease, cost


Lease cost	Classification	Year Ended December 31, 2020		Year Ended December 31, 2019
Operating lease cost (1)	Cost of equipment rentals, excluding depreciation (1)	$	366	$	370
	Selling, general and administrative expenses	10		10
	Restructuring charge	9		16
Finance lease cost
Amortization of leased assets	Depreciation of rental equipment	31		28
	Non-rental depreciation and amortization	1		2
Interest on lease liabilities	Interest expense, net	5		6
Sublease income (2)		(142)		(157)
Net lease cost		$	280	$	275

_________________

(1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the years ended December 31, 2020 and 2019 includes $124 and $142, 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	December 31, 2020		December 31, 2019
Weighted-average remaining lease term (years)
Operating leases	5.0		4.8
Finance leases	3.0		3.2
Weighted-average discount rate
Operating leases	4.2	%	4.7	%
Finance leases	3.4	%	4.0	%


Other information	Year Ended December 31, 2020		Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	207	$	202
Operating cash flows from finance leases	5		6
Financing cash flows from finance leases	53		47
Leased assets obtained in exchange for new operating lease liabilities	202		201
Leased assets obtained in exchange for new finance lease liabilities	$	64	$	55

Finance lease, liability, maturity


Maturity of lease liabilities (as of December 31, 2020)	Operating leases (1)		Finance leases (2)
2021	$	205	$	63
2022	176		40
2023	144		28
2024	112		10
2025	76		1
Thereafter	113		3
Total	826		145
Less amount representing interest	(99)		(10)
Present value of lease liabilities	$	727	$	135

_________________

(1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of December 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.

Lessee, operating lease, liability, maturity


Maturity of lease liabilities (as of December 31, 2020)	Operating leases (1)		Finance leases (2)
2021	$	205	$	63
2022	176		40
2023	144		28
2024	112		10
2025	76		1
Thereafter	113		3
Total	826		145
Less amount representing interest	(99)		(10)
Present value of lease liabilities	$	727	$	135

_________________

(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.

Schedule of capital leased assets

The following table presents historic financial statement information for our leases (accounted for under Topic 840) for the year ended December 31, 2018:



Capital leases
Depreciation of rental equipment	$	22
Non-rental depreciation and amortization	1









Operating leases
Rent expense on non-cancelable leases (1)	$	179

_________________

(1) Rent expense on non-cancelable operating leases does not include short-term lease costs associated with equipment that we rent from vendors and then rent to our customers (which is a component of the 2020 and 2019 operating lease costs under Topic 842 as reflected in the table above). Under Topic 840, rental payments under leases with terms of a month or less that were not renewed are not included in rent expense, and we excluded such expenses because of the short-term duration of

the arrangements under which we rented equipment from vendors and then rented such equipment to our customers. The amount of such rentals was $121 for the year ended December 31, 2018.