Revenue Earning Vehicles

The components of revenue earning vehicles, net are as follows:



(In millions)	September 30, 2016			December 31, 2015
Revenue earning vehicles	$	14,022		$	13,242
Less: Accumulated depreciation	(2,614		)	(2,631		)
	11,408			10,611
Revenue earning vehicles held for sale, net	300			135
Revenue earning vehicles, net	$	11,708		$	10,746

Depreciation of revenue earning vehicles and lease charges, net includes the following:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2016		2015		2016		2015
Depreciation of revenue earning vehicles	$	631	$	581	$	1,766	$	1,747
(Gain) loss on disposal of revenue earning vehicles^(a)	44		32		121		56
Rents paid for vehicles leased	20		18		53		56
Depreciation of revenue earning vehicles and lease charges, net	$	695	$	631	$	1,940	$	1,859

(a) (Gain) loss on disposal of revenue earning vehicles by segment is as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)	2016		2015			2016			2015
U.S. Rental Car	$	43	$	34		$	124		$	59
International Rental Car	1		(2		)	(3		)	(3		)
Total	$	44	$	32		$	121		$	56

Depreciation rates are reviewed on a quarterly basis based on management's ongoing assessment of present and estimated future market conditions, their effect on residual values at the time of disposal and the estimated holding periods for the vehicles. The cumulative impact of depreciation rate changes is as follows:



Increase (decrease)	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2016		2015		2016		2015
U.S. Rental Car^(a)	$	43	$	26	$	88	$	83
International Rental Car	1		—		3		—
Total	$	44	$	26	$	91	$	83

(a)

The depreciation rate changes in the U.S. Rental Car operations for the three and nine months ended September 30, 2016 include a net increase in depreciation expense of $39 million based on the review completed during the third quarter of 2016. The depreciation rate changes in the U.S. Rental Car operations for the three and nine months ended September 30, 2015 include a net increase in depreciation expense of $11 million based on the review completed during the third quarter of 2015.