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Leases (Tables)

6 Months Ended

Jun. 30, 2021

The tables below present financial information associated with our leases as of June 30, 2021 and December 31, 2020, and for the three and six months ended June 30, 2021 and 2020.


	Classification	June 30, 2021		December 31, 2020
Assets
Operating lease assets	Operating lease right-of-use assets (1)	$	781	$	688
Finance lease assets	Rental equipment	313		295
	Less accumulated depreciation	(88)		(86)
	Rental equipment, net	225		209
	Property and equipment, net:
	Non-rental vehicles	8		8
	Buildings	21		19
	Less accumulated depreciation and amortization	(16)		(11)
	Property and equipment, net	13		16
Total leased assets		1,019		913
Liabilities
Current
Operating	Accrued expenses and other liabilities	192		178
Finance	Short-term debt and current maturities of long-term debt	48		60
Long-term
Operating	Operating lease liabilities (1)	630		549
Finance	Long-term debt	89		75
Total lease liabilities		$	959	$	862

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(1) The increases in 2021 include the impact of the General Finance acquisition discussed in note 3 to the condensed consolidated financial statements.

Lease, cost


Lease cost	Classification	Three Months Ended June 30, 2021		Three Months Ended June 30, 2020		Six Months Ended June 30, 2021		Six Months Ended June 30, 2020
Operating lease cost (1)	Cost of equipment rentals, excluding depreciation (1)	$	100	$	86	$	190	$	178
	Selling, general and administrative expenses	3		3		5		6
	Restructuring charge	—		1		1		2
Finance lease cost
Amortization of leased assets	Depreciation of rental equipment	8		8		15		15
	Non-rental depreciation and amortization	1		1		1		1
Interest on lease liabilities	Interest expense, net	1		3		2		6
Sublease income (2)		(42)		(30)		(74)		(64)
Net lease cost		$	71	$	72	$	140	$	144

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(1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation includes $34 and $27 for the three months ended June 30, 2021 and 2020, respectively, and $62 and $58 for the six months ended June 30, 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	June 30, 2021		December 31, 2020
Weighted-average remaining lease term (years)
Operating leases	6.0		5.0
Finance leases	3.3		3.0
Weighted-average discount rate
Operating leases	4.1	%	4.2	%
Finance leases	2.7	%	3.4	%


Other information	Six Months Ended June 30, 2021		Six Months Ended June 30, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	108	$	104
Operating cash flows from finance leases	2		6
Financing cash flows from finance leases	42		26
Leased assets obtained in exchange for new operating lease liabilities (1)	184		92
Leased assets obtained in exchange for new finance lease liabilities	$	39	$	39

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(1) The increase in 2021 includes the impact of the General Finance acquisition discussed in note 3 to the condensed consolidated financial statements.

Lessee, operating lease, liability, maturity


Maturity of lease liabilities (as of June 30, 2021)	Operating leases (1)		Finance leases (2)
2021	$	117	$	29
2022	205		50
2023	172		40
2024	139		17
2025	102		4
Thereafter	199		4
Total	934		144
Less amount representing interest	(112)		(7)
Present value of lease liabilities	$	822	$	137

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(1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of June 30, 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 June 30, 2021)	Operating leases (1)		Finance leases (2)
2021	$	117	$	29
2022	205		50
2023	172		40
2024	139		17
2025	102		4
Thereafter	199		4
Total	934		144
Less amount representing interest	(112)		(7)
Present value of lease liabilities	$	822	$	137

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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.