Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

We are subject to a number of claims and proceedings that generally arise in the ordinary conduct of our business. These matters include, but are not limited to, general liability claims (including personal injury, product liability, and property and automobile claims), indemnification and guarantee obligations, employee injuries and employment-related claims, self-insurance obligations and contract and real estate matters. Based on advice of counsel and available information, including current status or stage of proceeding, and taking into account accruals included in our consolidated balance sheets for matters where we have established them, we currently believe that any liabilities ultimately resulting from these ordinary course claims and proceedings will not, individually or in the aggregate, have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Indemnification

The Company indemnifies its officers and directors pursuant to indemnification agreements and may in addition indemnify these individuals as permitted by Delaware law.

Operating Leases

We lease real estate and equipment under operating leases. Certain real estate leases require us to pay maintenance, insurance, taxes and certain other expenses in addition to the stated rental payments. Future minimum lease payments by year and in the aggregate, for non-cancelable operating leases with initial or remaining terms of one year or more are as follows at December 31, 2018:



	Real Estate Leases		Equipment Leases
2019	$	148	$	45
2020	125		39
2021	102		30
2022	71		23
2023	43		17
Thereafter	47		17
Total	$	536	$	171

Our equipment leases are primarily comprised of service and delivery vehicles. Our real estate leases provide for varying terms, including customary escalation clauses. Our leases generally include default provisions that are customary, and do not contain material adverse change clauses, cross-default provisions or subjective default provisions. In these leases, the occurrence of an event of default is objectively determinable based on predefined criteria. Based on the facts and circumstances that existed at lease inception and with consideration of our history as a lessee, we believe that it is reasonable to assume that an event of default will not occur.

As discussed in note 2 to the consolidated financial statements (see "New Accounting Pronouncements-Leases"), we will adopt a new lease accounting standard on January 1, 2019. Upon adoption of the new standard, our operating leases will result in lease assets and lease liabilities being recognized on the balance sheet.

Rent expense under all non-cancelable operating leases totaled $179, $160 and $149 for the years ended December 31, 2018, 2017 and 2016, respectively.

Capital Leases

Capital lease obligations consist primarily of vehicle, building and equipment leases with periods expiring at various dates through 2028. Capital lease obligations were $122 and $67 at December 31, 2018 and 2017, respectively. The following table presents capital lease financial statement information for the years ended December 31, 2018, 2017 and 2016, except for balance sheet information, which is presented as of December 31, 2018 and 2017:



	2018			2017			2016
Depreciation of rental equipment	$	22		$	21		$	20
Non-rental depreciation and amortization	1			2			3
Rental equipment	257			203
Less accumulated depreciation	(86		)	(80		)
Rental equipment, net	171			123
Property and equipment, net:
Non-rental vehicles	6			2
Buildings	16			21
Less accumulated depreciation and amortization	(12		)	(14		)
Property and equipment, net	$	10		$	9

Future minimum lease payments for capital leases for each of the next five years and thereafter at December 31, 2018 are as follows:



2019	$	47
2020	34
2021	33
2022	9
2023	2
Thereafter	6
Total	131
Less amount representing interest (1)	(9		)
Capital lease obligations	$	122


(1)	The weighted average interest rate on our capital lease obligations as of December 31, 2018 was approximately 4.7 percent.

As noted above, we will adopt a new lease accounting standard on January 1, 2019. Upon adoption of the new standard, the capital leases above are expected to be accounted for as finance leases. We do not expect any significant changes to the accounting upon this change in classification.

Employee Benefit Plans

We currently sponsor three defined contribution 401(k) retirement plans, which are subject to the provisions of the Employee Retirement Income Security Act of 1974. We also sponsor a deferred profit sharing plan and a registered retirement savings plan for the benefit of the full-time employees of our Canadian subsidiaries. Under these plans, we match a percentage of the participants’ contributions up to a specified amount. Company contributions to the plans were $31, $26 and $23 in the years ended December 31, 2018, 2017 and 2016, respectively.

Environmental Matters

The Company and its operations are subject to various laws and related regulations governing environmental matters. Under such laws, an owner or lessee of real estate may be liable for the costs of removal or remediation of certain hazardous or toxic substances located on or in, or emanating from, such property, as well as investigation of property damage. We incur ongoing expenses associated with the performance of appropriate remediation at certain locations.