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Leases (Tables)

9 Months Ended

Sep. 30, 2021

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


	Classification	September 30, 2021		December 31, 2020
Assets
Operating lease assets	Operating lease right-of-use assets (1)	$	775	$	688
Finance lease assets	Rental equipment	323		295
	Less accumulated depreciation	(93)		(86)
	Rental equipment, net	230		209
	Property and equipment, net:
	Non-rental vehicles	8		8
	Buildings	23		19
	Less accumulated depreciation and amortization	(17)		(11)
	Property and equipment, net	14		16
Total leased assets		1,019		913
Liabilities
Current
Operating	Accrued expenses and other liabilities	199		178
Finance	Short-term debt and current maturities of long-term debt	46		60
Long-term
Operating	Operating lease liabilities (1)	615		549
Finance	Long-term debt	93		75
Total lease liabilities		$	953	$	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 September 30, 2021		Three Months Ended September 30, 2020		Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
Operating lease cost (1)	Cost of equipment rentals, excluding depreciation (1)	$	119	$	95	$	309	$	273
	Selling, general and administrative expenses	3		2		8		8
	Restructuring charge	—		1		1		3
Finance lease cost
Amortization of leased assets	Depreciation of rental equipment	9		8		24		23
	Non-rental depreciation and amortization	—		—		1		1
Interest on lease liabilities	Interest expense, net	1		3		3		9
Sublease income (2)		(61)		(41)		(135)		(105)
Net lease cost		$	71	$	68	$	211	$	212

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(1) Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation includes $50 and $32 for the three months ended September 30, 2021 and 2020, respectively, and $112 and $90 for the nine months ended September 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	September 30, 2021		December 31, 2020
Weighted-average remaining lease term (years)
Operating leases	5.0		5.0
Finance leases	3.2		3.0
Weighted-average discount rate
Operating leases	3.6	%	4.2	%
Finance leases	3.0	%	3.4	%


Other information	Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	162	$	156
Operating cash flows from finance leases	3		9
Financing cash flows from finance leases	55		39
Leased assets obtained in exchange for new operating lease liabilities (1)	241		135
Leased assets obtained in exchange for new finance lease liabilities	$	55	$	54

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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 September 30, 2021)	Operating leases (1)		Finance leases (2)
2021	$	58	$	16
2022	216		54
2023	185		41
2024	150		23
2025	112		8
Thereafter	164		5
Total	885		147
Less amount representing interest	(71)		(8)
Present value of lease liabilities	$	814	$	139

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(1) Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of September 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 September 30, 2021)	Operating leases (1)		Finance leases (2)
2021	$	58	$	16
2022	216		54
2023	185		41
2024	150		23
2025	112		8
Thereafter	164		5
Total	885		147
Less amount representing interest	(71)		(8)
Present value of lease liabilities	$	814	$	139

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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.