Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

Leases

Lessor

The following table presents our lease revenues disaggregated by geography:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2023		2022		2023		2022
Americas	$	2,410	$	2,549	$	4,405	$	4,534
Europe, Middle East and Africa	523		505		872		814
Asia and Australasia	148		148		317		252
Total lease revenues	$	3,081	$	3,202	$	5,594	$	5,600

The following table presents our lease revenues disaggregated by brand:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2023		2022		2023		2022
Avis	$	1,721	$	1,728	$	3,109	$	2,989
Budget	1,168		1,270		2,132		2,242
Other	192		204		353		369
Total lease revenues	$	3,081	$	3,202	$	5,594	$	5,600

_______

Other includes Zipcar and other operating brands.

Lessee

We have operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of our operating leases for rental locations contain concession agreements with various airport authorities that allow us to conduct our 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. Our operating leases for rental locations often also require us to pay or reimburse operating expenses.

The components of lease expense are as follows:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2023		2022		2023		2022
Property leases (a)
Operating lease expense	$	214	$	168	$	419	$	329
Variable lease expense	108		152		191		254
Total property lease expense	$	322	$	320	$	610	$	583

__________

(a)    Primarily within operating expenses.

Supplemental balance sheet information related to leases is as follows:

	As of  June 30, 2023			As of  December 31, 2022
Property leases
Operating lease ROU assets	$	2,547		$	2,405
Short-term operating lease liabilities (a)	$	506		$	555
Long-term operating lease liabilities	2,079			1,884
Operating lease liabilities	$	2,585		$	2,439
Weighted average remaining lease term	8.6 years			8.2 years
Weighted average discount rate	4.54		%	4.30		%

_________

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

Supplemental cash flow information related to leases is as follows:

	Six Months Ended  June 30,
	2023		2022
Cash payments for lease liabilities within operating activities:
Property operating leases	$	431	$	354
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases	$	572	$	311

Leases

Leases

Lessor

The following table presents our lease revenues disaggregated by geography:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2023		2022		2023		2022
Americas	$	2,410	$	2,549	$	4,405	$	4,534
Europe, Middle East and Africa	523		505		872		814
Asia and Australasia	148		148		317		252
Total lease revenues	$	3,081	$	3,202	$	5,594	$	5,600

The following table presents our lease revenues disaggregated by brand:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2023		2022		2023		2022
Avis	$	1,721	$	1,728	$	3,109	$	2,989
Budget	1,168		1,270		2,132		2,242
Other	192		204		353		369
Total lease revenues	$	3,081	$	3,202	$	5,594	$	5,600

_______

Other includes Zipcar and other operating brands.

Lessee

We have operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of our operating leases for rental locations contain concession agreements with various airport authorities that allow us to conduct our 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. Our operating leases for rental locations often also require us to pay or reimburse operating expenses.

The components of lease expense are as follows:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2023		2022		2023		2022
Property leases (a)
Operating lease expense	$	214	$	168	$	419	$	329
Variable lease expense	108		152		191		254
Total property lease expense	$	322	$	320	$	610	$	583

__________

(a)    Primarily within operating expenses.

Supplemental balance sheet information related to leases is as follows:

	As of  June 30, 2023			As of  December 31, 2022
Property leases
Operating lease ROU assets	$	2,547		$	2,405
Short-term operating lease liabilities (a)	$	506		$	555
Long-term operating lease liabilities	2,079			1,884
Operating lease liabilities	$	2,585		$	2,439
Weighted average remaining lease term	8.6 years			8.2 years
Weighted average discount rate	4.54		%	4.30		%

_________

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

Supplemental cash flow information related to leases is as follows:

	Six Months Ended  June 30,
	2023		2022
Cash payments for lease liabilities within operating activities:
Property operating leases	$	431	$	354
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases	$	572	$	311

Leases

Leases

Lessor

The following table presents our lease revenues disaggregated by geography:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2023		2022		2023		2022
Americas	$	2,410	$	2,549	$	4,405	$	4,534
Europe, Middle East and Africa	523		505		872		814
Asia and Australasia	148		148		317		252
Total lease revenues	$	3,081	$	3,202	$	5,594	$	5,600

The following table presents our lease revenues disaggregated by brand:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2023		2022		2023		2022
Avis	$	1,721	$	1,728	$	3,109	$	2,989
Budget	1,168		1,270		2,132		2,242
Other	192		204		353		369
Total lease revenues	$	3,081	$	3,202	$	5,594	$	5,600

_______

Other includes Zipcar and other operating brands.

Lessee

We have operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of our operating leases for rental locations contain concession agreements with various airport authorities that allow us to conduct our 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. Our operating leases for rental locations often also require us to pay or reimburse operating expenses.

The components of lease expense are as follows:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2023		2022		2023		2022
Property leases (a)
Operating lease expense	$	214	$	168	$	419	$	329
Variable lease expense	108		152		191		254
Total property lease expense	$	322	$	320	$	610	$	583

__________

(a)    Primarily within operating expenses.

Supplemental balance sheet information related to leases is as follows:

	As of  June 30, 2023			As of  December 31, 2022
Property leases
Operating lease ROU assets	$	2,547		$	2,405
Short-term operating lease liabilities (a)	$	506		$	555
Long-term operating lease liabilities	2,079			1,884
Operating lease liabilities	$	2,585		$	2,439
Weighted average remaining lease term	8.6 years			8.2 years
Weighted average discount rate	4.54		%	4.30		%

_________

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

Supplemental cash flow information related to leases is as follows:

	Six Months Ended  June 30,
	2023		2022
Cash payments for lease liabilities within operating activities:
Property operating leases	$	431	$	354
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases	$	572	$	311