Leases (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Assets and liabilities of leases

The tables below present financial information associated with our leases as of March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020.

	Classification	March 31, 2021		December 31, 2020
Assets
Operating lease assets	Operating lease right-of-use assets	$	681	$	688
Finance lease assets	Rental equipment	296		295
	Less accumulated depreciation	(86)		(86)
	Rental equipment, net	210		209
	Property and equipment, net:
	Non-rental vehicles	8		8
	Buildings	20		19
	Less accumulated depreciation and amortization	(13)		(11)
	Property and equipment, net	15		16
Total leased assets		906		913
Liabilities
Current
Operating	Accrued expenses and other liabilities	178		178
Finance	Short-term debt and current maturities of long-term debt	51		60
Long-term
Operating	Operating lease liabilities	541		549
Finance	Long-term debt	80		75
Total lease liabilities		$	850	$	862

Lease, cost

Lease cost	Classification	Three Months Ended March 31, 2021		Three Months Ended March 31, 2020
Operating lease cost (1)	Cost of equipment rentals, excluding depreciation (1)	$	90	$	92
	Selling, general and administrative expenses	2		3
	Restructuring charge	1		1
Finance lease cost
Amortization of leased assets	Depreciation of rental equipment	7		7
	Non-rental depreciation and amortization	—		—
Interest on lease liabilities	Interest expense, net	1		3
Sublease income (2)		(32)		(34)
Net lease cost		$	69	$	72

_________________

(1)    Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation includes $28 and $31 for the three months ended March 31, 2021 and 2020, 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, 2021		December 31, 2020
Weighted-average remaining lease term (years)
Operating leases	4.9		5.0
Finance leases	3.0		3.0
Weighted-average discount rate
Operating leases	4.1	%	4.2	%
Finance leases	3.0	%	3.4	%

Other information	Three Months Ended March 31, 2021		Three Months Ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	52	$	52
Operating cash flows from finance leases	1		3
Financing cash flows from finance leases	21		12
Leased assets obtained in exchange for new operating lease liabilities	41		48
Leased assets obtained in exchange for new finance lease liabilities	$	16	$	34

Lessee, operating lease, liability, maturity

Maturity of lease liabilities (as of March 31, 2021)	Operating leases (1)		Finance leases (2)
2021	$	155	$	46
2022	181		44
2023	150		32
2024	117		11
2025	81		2
Thereafter	111		5
Total	795		140
Less amount representing interest	(76)		(9)
Present value of lease liabilities	$	719	$	131

_________________

(1)    Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of March 31, 2021. 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, 2021)	Operating leases (1)		Finance leases (2)
2021	$	155	$	46
2022	181		44
2023	150		32
2024	117		11
2025	81		2
Thereafter	111		5
Total	795		140
Less amount representing interest	(76)		(9)
Present value of lease liabilities	$	719	$	131

_________________

(1)    Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of March 31, 2021. 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.