Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

Lessor

The following table presents our lease revenues disaggregated by geography:

	Three Months Ended  September 30,				Nine Months Ended  September 30,
	2023		2022		2023		2022
Americas	$	2,715	$	2,682	$	7,120	$	7,216
Europe, Middle East and Africa	646		654		1,518		1,468
Asia and Australasia	150		160		467		412
Total lease revenues	$	3,511	$	3,496	$	9,105	$	9,096

The following table presents our lease revenues disaggregated by brand:

	Three Months Ended  September 30,				Nine Months Ended  September 30,
	2023		2022		2023		2022
Avis	$	2,011	$	1,926	$	5,120	$	4,915
Budget	1,298		1,356		3,430		3,598
Other	202		214		555		583
Total lease revenues	$	3,511	$	3,496	$	9,105	$	9,096

_______

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  September 30,				Nine Months Ended  September 30,
	2023		2022		2023		2022
Property leases (a)
Operating lease expense	$	212	$	184	$	631	$	513
Variable lease expense	136		169		327		423
Total property lease expense	$	348	$	353	$	958	$	936

__________

(a)    Primarily within operating expenses.

Supplemental balance sheet information related to leases is as follows:

	As of  September 30, 2023			As of  December 31, 2022
Property leases
Operating lease ROU assets	$	2,661		$	2,405
Short-term operating lease liabilities (a)	$	521		$	555
Long-term operating lease liabilities	2,178			1,884
Operating lease liabilities	$	2,699		$	2,439
Weighted average remaining lease term	8.4 years			8.2 years
Weighted average discount rate	4.74		%	4.30		%

_________

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

Supplemental cash flow information related to leases is as follows:

	Nine Months Ended  September 30,
	2023		2022
Cash payments for lease liabilities within operating activities:
Property operating leases	$	645	$	537
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases	$	914	$	508

Leases

Leases

Lessor

The following table presents our lease revenues disaggregated by geography:

	Three Months Ended  September 30,				Nine Months Ended  September 30,
	2023		2022		2023		2022
Americas	$	2,715	$	2,682	$	7,120	$	7,216
Europe, Middle East and Africa	646		654		1,518		1,468
Asia and Australasia	150		160		467		412
Total lease revenues	$	3,511	$	3,496	$	9,105	$	9,096

The following table presents our lease revenues disaggregated by brand:

	Three Months Ended  September 30,				Nine Months Ended  September 30,
	2023		2022		2023		2022
Avis	$	2,011	$	1,926	$	5,120	$	4,915
Budget	1,298		1,356		3,430		3,598
Other	202		214		555		583
Total lease revenues	$	3,511	$	3,496	$	9,105	$	9,096

_______

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  September 30,				Nine Months Ended  September 30,
	2023		2022		2023		2022
Property leases (a)
Operating lease expense	$	212	$	184	$	631	$	513
Variable lease expense	136		169		327		423
Total property lease expense	$	348	$	353	$	958	$	936

__________

(a)    Primarily within operating expenses.

Supplemental balance sheet information related to leases is as follows:

	As of  September 30, 2023			As of  December 31, 2022
Property leases
Operating lease ROU assets	$	2,661		$	2,405
Short-term operating lease liabilities (a)	$	521		$	555
Long-term operating lease liabilities	2,178			1,884
Operating lease liabilities	$	2,699		$	2,439
Weighted average remaining lease term	8.4 years			8.2 years
Weighted average discount rate	4.74		%	4.30		%

_________

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

Supplemental cash flow information related to leases is as follows:

	Nine Months Ended  September 30,
	2023		2022
Cash payments for lease liabilities within operating activities:
Property operating leases	$	645	$	537
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases	$	914	$	508

Leases

Leases

Lessor

The following table presents our lease revenues disaggregated by geography:

	Three Months Ended  September 30,				Nine Months Ended  September 30,
	2023		2022		2023		2022
Americas	$	2,715	$	2,682	$	7,120	$	7,216
Europe, Middle East and Africa	646		654		1,518		1,468
Asia and Australasia	150		160		467		412
Total lease revenues	$	3,511	$	3,496	$	9,105	$	9,096

The following table presents our lease revenues disaggregated by brand:

	Three Months Ended  September 30,				Nine Months Ended  September 30,
	2023		2022		2023		2022
Avis	$	2,011	$	1,926	$	5,120	$	4,915
Budget	1,298		1,356		3,430		3,598
Other	202		214		555		583
Total lease revenues	$	3,511	$	3,496	$	9,105	$	9,096

_______

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  September 30,				Nine Months Ended  September 30,
	2023		2022		2023		2022
Property leases (a)
Operating lease expense	$	212	$	184	$	631	$	513
Variable lease expense	136		169		327		423
Total property lease expense	$	348	$	353	$	958	$	936

__________

(a)    Primarily within operating expenses.

Supplemental balance sheet information related to leases is as follows:

	As of  September 30, 2023			As of  December 31, 2022
Property leases
Operating lease ROU assets	$	2,661		$	2,405
Short-term operating lease liabilities (a)	$	521		$	555
Long-term operating lease liabilities	2,178			1,884
Operating lease liabilities	$	2,699		$	2,439
Weighted average remaining lease term	8.4 years			8.2 years
Weighted average discount rate	4.74		%	4.30		%

_________

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

Supplemental cash flow information related to leases is as follows:

	Nine Months Ended  September 30,
	2023		2022
Cash payments for lease liabilities within operating activities:
Property operating leases	$	645	$	537
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases	$	914	$	508