Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Assets and liabilities, lessee

The tables below present financial information associated with our leases as of December 31, 2023 and 2022, and for the years ended December 31, 2023, 2022 and 2021.

	Classification	December 31, 2023		December 31, 2022
Assets
Operating lease assets	Operating lease right-of-use assets (1)	$	1,099	$	819
Finance lease assets	Rental equipment	395		321
	Less accumulated depreciation	(126)		(104)
	Rental equipment, net	269		217
	Property and equipment, net:
	Non-rental vehicles	8		8
	Buildings	66		25
	Less accumulated depreciation and amortization	(27)		(20)
	Property and equipment, net	47		13
Total leased assets		1,415		1,049
Liabilities
Current
Operating	Accrued expenses and other liabilities	249		211
Finance	Short-term debt and current maturities of long-term debt	55		51
Long-term
Operating	Operating lease liabilities (1)	895		642
Finance	Long-term debt	137		72
Total lease liabilities		$	1,336	$	976

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(1)    The increases in 2023 include the impact of the Ahern Rentals acquisition discussed in note 4 to the consolidated financial statements.

Lease, cost

Lease cost	Classification	Year Ended December 31, 2023		Year Ended December 31, 2022		Year Ended December 31, 2021
Operating lease cost (1)	Cost of equipment rentals, excluding depreciation (1)	$	582	$	494	$	432
	Selling, general and administrative expenses	12		11		11
	Restructuring charge (2)	27		—		1
Finance lease cost
Amortization of leased assets	Depreciation of rental equipment	36		31		36
	Non-rental depreciation and amortization	2		2		2
Interest on lease liabilities	Interest expense, net	8		5		4
Sublease income (3)		(233)		(235)		(194)
Net lease cost		$	434	$	308	$	292

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(1)    Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the years ended December 31, 2023, 2022 and 2021 includes $209, $195 and $163, 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)    The increase in 2023 reflects the impact of a restructuring program initiated following the closing of the Ahern Rentals acquisition.

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

Lease term and discount rate	December 31, 2023		December 31, 2022
Weighted-average remaining lease term (years)
Operating leases	6.2		4.8
Finance leases	6.5		2.8
Weighted-average discount rate
Operating leases	4.5	%	3.7	%
Finance leases	4.8	%	3.5	%

Other information	Year Ended December 31, 2023		Year Ended December 31, 2022		Year Ended December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	304	$	244	$	221
Operating cash flows from finance leases	8		5		4
Financing cash flows from finance leases	64		57		69
Leased assets obtained in exchange for new operating lease liabilities (1)	538		237		299
Leased assets obtained in exchange for new finance lease liabilities (1)	$	132	$	47	$	66

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(1)    The increases in 2023 include the impact of the Ahern Rentals acquisition discussed in note 4 to the consolidated financial statements.

Finance lease, liability, maturity

Maturity of lease liabilities (as of December 31, 2023)	Operating leases (1)		Finance leases (2)
2024	$	295	$	61
2025	259		54
2026	219		40
2027	168		24
2028	115		6
Thereafter	275		44
Total	1,331		229
Less amount representing interest	(187)		(37)
Present value of lease liabilities	$	1,144	$	192

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(1)    Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of December 31, 2023. 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, 2023)	Operating leases (1)		Finance leases (2)
2024	$	295	$	61
2025	259		54
2026	219		40
2027	168		24
2028	115		6
Thereafter	275		44
Total	1,331		229
Less amount representing interest	(187)		(37)
Present value of lease liabilities	$	1,144	$	192

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(1)    Reflects payments for non-cancelable operating leases with initial or remaining terms of one year or more as of December 31, 2023. 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.