Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Leases

Lessor

The following table presents the Company’s lease revenues disaggregated by geography.

	Three Months Ended  March 31,
	2021		2020
Americas	$	1,054	$	1,244
Europe, Middle East and Africa	192		342
Asia and Australasia	86		135
Total lease revenues	$	1,332	$	1,721

The following table presents the Company’s lease revenues disaggregated by brand.

	Three Months Ended  March 31,
	2021		2020
Avis	$	690	$	968
Budget	516		608
Other	126		145
Total lease revenues	$	1,332	$	1,721

_______

Other includes Zipcar and other operating brands.

Lessee

The Company has operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of the Company’s operating leases for rental locations contain concession agreements with various airport authorities that allow the Company to conduct its vehicle rental operations on site. In general, concession fees for airport locations are based on a percentage of total commissionable revenue as defined by each airport authority, some of which are subject to minimum annual guaranteed amounts. Concession fees other than minimum annual guaranteed amounts are not included in the measurement of operating lease Right of Use (“ROU”) assets and operating lease liabilities, and are recorded as variable lease expense as incurred. The Company’s operating leases for rental locations often also require the Company to pay or reimburse operating expenses.

The components of lease expense are as follows:

	Three Months Ended  March 31,
	2021		2020
Property leases (a)
Operating lease expense	$	139	$	185
Variable lease expense	54		36
Total property lease expense	$	193	$	221

__________

(a)    Primarily included in operating expense and includes $19 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the three months ended March 31, 2021.

Supplemental balance sheet information related to leases is as follows:

	As of  March 31, 2021			As of  December 31, 2020
Property leases
Operating lease ROU assets	$	2,510		$	2,560
Short-term operating lease liabilities (a)	$	519		$	514
Long-term operating lease liabilities	2,025			2,078
Operating lease liabilities	$	2,544		$	2,592
Weighted average remaining lease term	8.3 years			8.4 years
Weighted average discount rate	3.85		%	3.86		%

_________

(a)    Included in Accounts payable and other current liabilities.

Supplemental cash flow information related to leases is as follows:

	Three Months Ended  March 31,
	2021		2020
Cash payments for lease liabilities within operating activities:
Property operating leases	$	202	$	170
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases	169		296

Leases

Leases

Lessor

The following table presents the Company’s lease revenues disaggregated by geography.

	Three Months Ended  March 31,
	2021		2020
Americas	$	1,054	$	1,244
Europe, Middle East and Africa	192		342
Asia and Australasia	86		135
Total lease revenues	$	1,332	$	1,721

The following table presents the Company’s lease revenues disaggregated by brand.

	Three Months Ended  March 31,
	2021		2020
Avis	$	690	$	968
Budget	516		608
Other	126		145
Total lease revenues	$	1,332	$	1,721

_______

Other includes Zipcar and other operating brands.

Lessee

The Company has operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of the Company’s operating leases for rental locations contain concession agreements with various airport authorities that allow the Company to conduct its vehicle rental operations on site. In general, concession fees for airport locations are based on a percentage of total commissionable revenue as defined by each airport authority, some of which are subject to minimum annual guaranteed amounts. Concession fees other than minimum annual guaranteed amounts are not included in the measurement of operating lease Right of Use (“ROU”) assets and operating lease liabilities, and are recorded as variable lease expense as incurred. The Company’s operating leases for rental locations often also require the Company to pay or reimburse operating expenses.

The components of lease expense are as follows:

	Three Months Ended  March 31,
	2021		2020
Property leases (a)
Operating lease expense	$	139	$	185
Variable lease expense	54		36
Total property lease expense	$	193	$	221

__________

(a)    Primarily included in operating expense and includes $19 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the three months ended March 31, 2021.

Supplemental balance sheet information related to leases is as follows:

	As of  March 31, 2021			As of  December 31, 2020
Property leases
Operating lease ROU assets	$	2,510		$	2,560
Short-term operating lease liabilities (a)	$	519		$	514
Long-term operating lease liabilities	2,025			2,078
Operating lease liabilities	$	2,544		$	2,592
Weighted average remaining lease term	8.3 years			8.4 years
Weighted average discount rate	3.85		%	3.86		%

_________

(a)    Included in Accounts payable and other current liabilities.

Supplemental cash flow information related to leases is as follows:

	Three Months Ended  March 31,
	2021		2020
Cash payments for lease liabilities within operating activities:
Property operating leases	$	202	$	170
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases	169		296

Leases

Leases

Lessor

The following table presents the Company’s lease revenues disaggregated by geography.

	Three Months Ended  March 31,
	2021		2020
Americas	$	1,054	$	1,244
Europe, Middle East and Africa	192		342
Asia and Australasia	86		135
Total lease revenues	$	1,332	$	1,721

The following table presents the Company’s lease revenues disaggregated by brand.

	Three Months Ended  March 31,
	2021		2020
Avis	$	690	$	968
Budget	516		608
Other	126		145
Total lease revenues	$	1,332	$	1,721

_______

Other includes Zipcar and other operating brands.

Lessee

The Company has operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of the Company’s operating leases for rental locations contain concession agreements with various airport authorities that allow the Company to conduct its vehicle rental operations on site. In general, concession fees for airport locations are based on a percentage of total commissionable revenue as defined by each airport authority, some of which are subject to minimum annual guaranteed amounts. Concession fees other than minimum annual guaranteed amounts are not included in the measurement of operating lease Right of Use (“ROU”) assets and operating lease liabilities, and are recorded as variable lease expense as incurred. The Company’s operating leases for rental locations often also require the Company to pay or reimburse operating expenses.

The components of lease expense are as follows:

	Three Months Ended  March 31,
	2021		2020
Property leases (a)
Operating lease expense	$	139	$	185
Variable lease expense	54		36
Total property lease expense	$	193	$	221

__________

(a)    Primarily included in operating expense and includes $19 million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreement for the three months ended March 31, 2021.

Supplemental balance sheet information related to leases is as follows:

	As of  March 31, 2021			As of  December 31, 2020
Property leases
Operating lease ROU assets	$	2,510		$	2,560
Short-term operating lease liabilities (a)	$	519		$	514
Long-term operating lease liabilities	2,025			2,078
Operating lease liabilities	$	2,544		$	2,592
Weighted average remaining lease term	8.3 years			8.4 years
Weighted average discount rate	3.85		%	3.86		%

_________

(a)    Included in Accounts payable and other current liabilities.

Supplemental cash flow information related to leases is as follows:

	Three Months Ended  March 31,
	2021		2020
Cash payments for lease liabilities within operating activities:
Property operating leases	$	202	$	170
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases	169		296