Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Assets and liabilities, lessee

The tables below present financial information associated with our leases as of December 31, 2022 and 2021, and for the years ended December 31, 2022, 2021 and 2020.

	Classification	December 31, 2022		December 31, 2021
Assets
Operating lease assets	Operating lease right-of-use assets	$	819	$	784
Finance lease assets	Rental equipment	321		329
	Less accumulated depreciation	(104)		(102)
	Rental equipment, net	217		227
	Property and equipment, net:
	Non-rental vehicles	8		8
	Buildings	25		23
	Less accumulated depreciation and amortization	(20)		(19)
	Property and equipment, net	13		12
Total leased assets		1,049		1,023
Liabilities
Current
Operating	Accrued expenses and other liabilities	211		202
Finance	Short-term debt and current maturities of long-term debt	51		53
Long-term
Operating	Operating lease liabilities	642		621
Finance	Long-term debt	72		82
Total lease liabilities		$	976	$	958

Lease, cost

Lease cost	Classification	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
Operating lease cost (1)	Cost of equipment rentals, excluding depreciation (1)	$	494	$	432	$	366
	Selling, general and administrative expenses	11		11		10
	Restructuring charge	—		1		9
Finance lease cost
Amortization of leased assets	Depreciation of rental equipment	31		36		31
	Non-rental depreciation and amortization	2		2		1
Interest on lease liabilities	Interest expense, net	5		4		5
Sublease income (2)		(235)		(194)		(142)
Net lease cost		$	308	$	292	$	280

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(1)    Includes variable lease costs, which are immaterial. Cost of equipment rentals, excluding depreciation for the years ended December 31, 2022, 2021 and 2020 includes $195, $163 and $124, 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	December 31, 2022		December 31, 2021
Weighted-average remaining lease term (years)
Operating leases	4.8		5.0
Finance leases	2.8		3.2
Weighted-average discount rate
Operating leases	3.7	%	3.5	%
Finance leases	3.5	%	2.8	%

Other information	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	244	$	221	$	207
Operating cash flows from finance leases	5		4		5
Financing cash flows from finance leases	57		69		53
Leased assets obtained in exchange for new operating lease liabilities (1)	237		299		202
Leased assets obtained in exchange for new finance lease liabilities	$	47	$	66	$	64

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(1)    The increase in 2021 includes the impact of the General Finance acquisition discussed in note 4 to the consolidated financial statements.

Finance lease, liability, maturity

Maturity of lease liabilities (as of December 31, 2022)	Operating leases (1)		Finance leases (2)
2023	$	237	$	53
2024	207		40
2025	171		24
2026	133		9
2027	84		3
Thereafter	95		4
Total	927		133
Less amount representing interest	(74)		(10)
Present value of lease liabilities	$	853	$	123

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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, 2022. 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, 2022)	Operating leases (1)		Finance leases (2)
2023	$	237	$	53
2024	207		40
2025	171		24
2026	133		9
2027	84		3
Thereafter	95		4
Total	927		133
Less amount representing interest	(74)		(10)
Present value of lease liabilities	$	853	$	123

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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, 2022. 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.