Leases

6 Months Ended

Jun. 30, 2024

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,
	2024		2023		2024		2023
Americas	$	2,330	$	2,410	$	4,304	$	4,405
Europe, Middle East and Africa	524		523		888		872
Asia and Australasia	140		148		311		317
Total lease revenues	$	2,994	$	3,081	$	5,503	$	5,594

The following table presents our lease revenues disaggregated by brand:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2024		2023		2024		2023
Avis	$	1,710	$	1,721	$	3,144	$	3,109
Budget	1,105		1,168		2,014		2,132
Other	179		192		345		353
Total lease revenues	$	2,994	$	3,081	$	5,503	$	5,594

________

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,
	2024		2023		2024		2023
Property leases (a)
Operating lease expense	$	233	$	214	$	462	$	419
Variable lease expense	93		108		162		191
Total property lease expense	$	326	$	322	$	624	$	610

________

(a)    Primarily within operating expenses.

Supplemental balance sheet information related to leases is as follows:

	As of  June 30, 2024			As of  December 31, 2023
Property leases
Operating lease ROU assets	$	2,754		$	2,654
Short-term operating lease liabilities (a)	$	567		$	576
Long-term operating lease liabilities	2,234			2,117
Operating lease liabilities	$	2,801		$	2,693
Weighted average remaining lease term	7.8 years			8.1 years
Weighted average discount rate	4.92		%	4.83		%

________

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

Supplemental cash flow information related to leases is as follows:

	Six Months Ended  June 30,
	2024		2023
Cash payments for lease liabilities within operating activities:
Property operating leases	$	452	$	431
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases	$	572	$	572

Leases

Leases

Lessor

The following table presents our lease revenues disaggregated by geography:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2024		2023		2024		2023
Americas	$	2,330	$	2,410	$	4,304	$	4,405
Europe, Middle East and Africa	524		523		888		872
Asia and Australasia	140		148		311		317
Total lease revenues	$	2,994	$	3,081	$	5,503	$	5,594

The following table presents our lease revenues disaggregated by brand:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2024		2023		2024		2023
Avis	$	1,710	$	1,721	$	3,144	$	3,109
Budget	1,105		1,168		2,014		2,132
Other	179		192		345		353
Total lease revenues	$	2,994	$	3,081	$	5,503	$	5,594

________

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,
	2024		2023		2024		2023
Property leases (a)
Operating lease expense	$	233	$	214	$	462	$	419
Variable lease expense	93		108		162		191
Total property lease expense	$	326	$	322	$	624	$	610

________

(a)    Primarily within operating expenses.

Supplemental balance sheet information related to leases is as follows:

	As of  June 30, 2024			As of  December 31, 2023
Property leases
Operating lease ROU assets	$	2,754		$	2,654
Short-term operating lease liabilities (a)	$	567		$	576
Long-term operating lease liabilities	2,234			2,117
Operating lease liabilities	$	2,801		$	2,693
Weighted average remaining lease term	7.8 years			8.1 years
Weighted average discount rate	4.92		%	4.83		%

________

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

Supplemental cash flow information related to leases is as follows:

	Six Months Ended  June 30,
	2024		2023
Cash payments for lease liabilities within operating activities:
Property operating leases	$	452	$	431
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases	$	572	$	572

Leases

Leases

Lessor

The following table presents our lease revenues disaggregated by geography:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2024		2023		2024		2023
Americas	$	2,330	$	2,410	$	4,304	$	4,405
Europe, Middle East and Africa	524		523		888		872
Asia and Australasia	140		148		311		317
Total lease revenues	$	2,994	$	3,081	$	5,503	$	5,594

The following table presents our lease revenues disaggregated by brand:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2024		2023		2024		2023
Avis	$	1,710	$	1,721	$	3,144	$	3,109
Budget	1,105		1,168		2,014		2,132
Other	179		192		345		353
Total lease revenues	$	2,994	$	3,081	$	5,503	$	5,594

________

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,
	2024		2023		2024		2023
Property leases (a)
Operating lease expense	$	233	$	214	$	462	$	419
Variable lease expense	93		108		162		191
Total property lease expense	$	326	$	322	$	624	$	610

________

(a)    Primarily within operating expenses.

Supplemental balance sheet information related to leases is as follows:

	As of  June 30, 2024			As of  December 31, 2023
Property leases
Operating lease ROU assets	$	2,754		$	2,654
Short-term operating lease liabilities (a)	$	567		$	576
Long-term operating lease liabilities	2,234			2,117
Operating lease liabilities	$	2,801		$	2,693
Weighted average remaining lease term	7.8 years			8.1 years
Weighted average discount rate	4.92		%	4.83		%

________

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

Supplemental cash flow information related to leases is as follows:

	Six Months Ended  June 30,
	2024		2023
Cash payments for lease liabilities within operating activities:
Property operating leases	$	452	$	431
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases	$	572	$	572