Leases (Notes)

3 Months Ended

Mar. 31, 2020

Leases

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



	Three Months Ended March 31,
	2020		2019
Americas	$	1,244	$	1,319
Europe, Middle East and Africa	342		414
Asia and Australasia	135		157
Total lease revenues	$	1,721	$	1,890

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



	Three Months Ended March 31,
	2020		2019
Avis	$	968	$	1,083
Budget	608		640
Other	145		167
Total lease revenues	$	1,721	$	1,890

________

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 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,
	2020		2019
Property leases ^(a)
Operating lease expense	$	185	$	177
Variable lease expense	36		51
Total property lease expense	$	221	$	228

__________


^(a)	Primarily included in operating expense.

Supplemental balance sheet information related to leases is as follows:



	As of March 31, 2020			As of December 31, 2019
Property leases
Operating lease ROU assets	$	2,686		$	2,596

Short-term operating lease liabilities ^(a)	$	512		$	479
Long-term operating lease liabilities	2,198			2,140
Operating lease liabilities	$	2,710		$	2,619

Weighted average remaining lease term	9.0 years			8.9 years
Weighted average discount rate	4.23		%	4.31		%

_________


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

Supplemental cash flow information related to leases is as follows:



	Three Months Ended March 31,
	2020		2019
Cash payments for lease liabilities within operating activities:
Property operating leases	$	170	$	189
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases ^(a)	296		(113		)

_________

^(a)

For the three months ended March 31, 2019, ROU assets obtained in exchange for lease liabilities from initial recognition.