XML 48 R13.htm IDEA: XBRL DOCUMENT

Leases

12 Months Ended

Dec. 31, 2024

Lessor

The following table presents our lease revenues disaggregated by geography:


	Year Ended December 31,
	2024		2023		2022
Americas	$	8,970	$	9,261	$	9,401
Europe, Middle East and Africa	1,958		1,932		1,852
Asia and Australasia	615		628		576
Total lease revenues	$	11,543	$	11,821	$	11,829

The following table presents our lease revenues disaggregated by brand:


	Year Ended December 31,
	2024		2023		2022
Avis	$	6,609	$	6,660	$	6,420
Budget	4,220		4,425		4,650
Other (a)	714		736		759
Total lease revenues	$	11,543	$	11,821	$	11,829

________

(a) 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.

We lease a portion of our vehicles under operating leases. As of December 31, 2024 and 2023, we have guaranteed up to $30 million and $52 million, respectively, of residual values for these vehicles at the end of their respective lease terms. We believe that, based on current market conditions, the net proceeds from the sale of these vehicles at the end of their lease terms will equal or exceed their net book values and therefore have not recorded a liability related to guaranteed residual values.

The components of lease expense are as follows:


	Year Ended December 31,
	2024		2023		2022
Property leases
Operating lease expense	$	935	$	860	$	703
Variable lease expense	343		402		520
Sublease income	(6)		(6)		(5)
Total property lease expense (a)	$	1,272	$	1,256	$	1,218

Vehicle leases
Finance lease expense:
Amortization of ROU assets (b)	$	27	$	28	$	29
Interest on lease liabilities (c)	7		6		3
Operating lease expense (b)	151		167		138
Total vehicle lease expense	$	185	$	201	$	170

__________

(a) Primarily included in operating expenses and for the year ended December 31, 2022, includes $(9) million of minimum annual guaranteed rent in excess of concession fees as defined in our rental concession agreements.

(b) Included in vehicle depreciation and lease charges, net.

Supplemental balance sheet information related to leases is as follows:


	As of December 31,
	2024		2023
Property leases
Operating lease ROU assets	$	3,057	$	2,654

Short-term operating lease liabilities (a)	$	628	$	576
Long-term operating lease liabilities	2,484		2,117
Operating lease liabilities	$	3,112	$	2,693

Weighted average remaining lease term	8.0 years		8.1 years
Weighted average discount rate	4.98%		4.83%

Vehicle leases
Finance
Finance lease ROU assets, gross	$	228	$	265
Accumulated amortization	(43)		(41)
Finance lease ROU assets, net (b)	$	185	$	224

Short-term vehicle finance lease liabilities	$	75	$	59
Long-term vehicle finance lease liabilities	68		113
Vehicle finance lease liabilities (c)	$	143	$	172

Weighted average remaining lease term	2.1 years		2.8 years
Weighted average discount rate	5.07%		3.68%

Operating
Vehicle operating lease ROU assets (d)	$	73	$	117

Short-term vehicle operating lease liabilities	$	58	$	83
Long-term vehicle operating lease liabilities	15		36
Vehicle operating lease liabilities (e)	$	73	$	119

Weighted average remaining lease term	1.3 years		1.5 years
Weighted average discount rate	5.20%		5.13%

_________

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

(b) Included in vehicles, net within assets under vehicle programs.

(d) Included in receivables from vehicle manufacturers and other within assets under vehicle programs.

(e) Included in other within liabilities under vehicle programs.

Supplemental cash flow information related to leases is as follows:


	Year Ended December 31,
	2024		2023		2022
Cash payments for lease liabilities within operating activities:
Property operating leases	$	947	$	838	$	743
Vehicle finance leases	7		6		3
Vehicle operating leases	151		167		137
Cash payments for lease liabilities within financing activities:
Vehicle finance leases	$	105	$	105	$	181
Non-cash activities - increase in ROU assets in exchange for lease liabilities:
Property operating leases	$	1,404	$	1,079	$	812
Vehicle finance leases	102		118		153
Vehicle operating leases	112		191		161

Maturities of lease liabilities as of December 31, 2024 are as follows:


	Property Operating Leases		Vehicle Finance Leases		Vehicle Operating Leases
Within 1 year	$	766	$	75	$	60
Between 1 and 2 years	579		—		10
Between 2 and 3 years	513		—		3
Between 3 and 4 years	415		61		1
Between 4 and 5 years	311		7		1
Thereafter	1,221		—		—
Total lease payments	3,805		143		75
Less: Imputed interest	(693)		—		(2)
Total	$	3,112	$	143	$	73

Leases

Lessor

The following table presents our lease revenues disaggregated by geography:


	Year Ended December 31,
	2024		2023		2022
Americas	$	8,970	$	9,261	$	9,401
Europe, Middle East and Africa	1,958		1,932		1,852
Asia and Australasia	615		628		576
Total lease revenues	$	11,543	$	11,821	$	11,829

The following table presents our lease revenues disaggregated by brand:


	Year Ended December 31,
	2024		2023		2022
Avis	$	6,609	$	6,660	$	6,420
Budget	4,220		4,425		4,650
Other (a)	714		736		759
Total lease revenues	$	11,543	$	11,821	$	11,829

________

(a) Other includes Zipcar and other operating brands.

Lessee

The components of lease expense are as follows:


	Year Ended December 31,
	2024		2023		2022
Property leases
Operating lease expense	$	935	$	860	$	703
Variable lease expense	343		402		520
Sublease income	(6)		(6)		(5)
Total property lease expense (a)	$	1,272	$	1,256	$	1,218

Vehicle leases
Finance lease expense:
Amortization of ROU assets (b)	$	27	$	28	$	29
Interest on lease liabilities (c)	7		6		3
Operating lease expense (b)	151		167		138
Total vehicle lease expense	$	185	$	201	$	170

__________

(b) Included in vehicle depreciation and lease charges, net.

Supplemental balance sheet information related to leases is as follows:


	As of December 31,
	2024		2023
Property leases
Operating lease ROU assets	$	3,057	$	2,654

Short-term operating lease liabilities (a)	$	628	$	576
Long-term operating lease liabilities	2,484		2,117
Operating lease liabilities	$	3,112	$	2,693

Weighted average remaining lease term	8.0 years		8.1 years
Weighted average discount rate	4.98%		4.83%

Vehicle leases
Finance
Finance lease ROU assets, gross	$	228	$	265
Accumulated amortization	(43)		(41)
Finance lease ROU assets, net (b)	$	185	$	224

Short-term vehicle finance lease liabilities	$	75	$	59
Long-term vehicle finance lease liabilities	68		113
Vehicle finance lease liabilities (c)	$	143	$	172

Weighted average remaining lease term	2.1 years		2.8 years
Weighted average discount rate	5.07%		3.68%

Operating
Vehicle operating lease ROU assets (d)	$	73	$	117

Short-term vehicle operating lease liabilities	$	58	$	83
Long-term vehicle operating lease liabilities	15		36
Vehicle operating lease liabilities (e)	$	73	$	119

Weighted average remaining lease term	1.3 years		1.5 years
Weighted average discount rate	5.20%		5.13%

_________

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

(b) Included in vehicles, net within assets under vehicle programs.

(d) Included in receivables from vehicle manufacturers and other within assets under vehicle programs.

(e) Included in other within liabilities under vehicle programs.

Supplemental cash flow information related to leases is as follows:


	Year Ended December 31,
	2024		2023		2022
Cash payments for lease liabilities within operating activities:
Property operating leases	$	947	$	838	$	743
Vehicle finance leases	7		6		3
Vehicle operating leases	151		167		137
Cash payments for lease liabilities within financing activities:
Vehicle finance leases	$	105	$	105	$	181
Non-cash activities - increase in ROU assets in exchange for lease liabilities:
Property operating leases	$	1,404	$	1,079	$	812
Vehicle finance leases	102		118		153
Vehicle operating leases	112		191		161

Maturities of lease liabilities as of December 31, 2024 are as follows:


	Property Operating Leases		Vehicle Finance Leases		Vehicle Operating Leases
Within 1 year	$	766	$	75	$	60
Between 1 and 2 years	579		—		10
Between 2 and 3 years	513		—		3
Between 3 and 4 years	415		61		1
Between 4 and 5 years	311		7		1
Thereafter	1,221		—		—
Total lease payments	3,805		143		75
Less: Imputed interest	(693)		—		(2)
Total	$	3,112	$	143	$	73

Leases

Lessor

The following table presents our lease revenues disaggregated by geography:


	Year Ended December 31,
	2024		2023		2022
Americas	$	8,970	$	9,261	$	9,401
Europe, Middle East and Africa	1,958		1,932		1,852
Asia and Australasia	615		628		576
Total lease revenues	$	11,543	$	11,821	$	11,829

The following table presents our lease revenues disaggregated by brand:


	Year Ended December 31,
	2024		2023		2022
Avis	$	6,609	$	6,660	$	6,420
Budget	4,220		4,425		4,650
Other (a)	714		736		759
Total lease revenues	$	11,543	$	11,821	$	11,829

________

(a) Other includes Zipcar and other operating brands.

Lessee

The components of lease expense are as follows:


	Year Ended December 31,
	2024		2023		2022
Property leases
Operating lease expense	$	935	$	860	$	703
Variable lease expense	343		402		520
Sublease income	(6)		(6)		(5)
Total property lease expense (a)	$	1,272	$	1,256	$	1,218

Vehicle leases
Finance lease expense:
Amortization of ROU assets (b)	$	27	$	28	$	29
Interest on lease liabilities (c)	7		6		3
Operating lease expense (b)	151		167		138
Total vehicle lease expense	$	185	$	201	$	170

__________

(b) Included in vehicle depreciation and lease charges, net.

Supplemental balance sheet information related to leases is as follows:


	As of December 31,
	2024		2023
Property leases
Operating lease ROU assets	$	3,057	$	2,654

Short-term operating lease liabilities (a)	$	628	$	576
Long-term operating lease liabilities	2,484		2,117
Operating lease liabilities	$	3,112	$	2,693

Weighted average remaining lease term	8.0 years		8.1 years
Weighted average discount rate	4.98%		4.83%

Vehicle leases
Finance
Finance lease ROU assets, gross	$	228	$	265
Accumulated amortization	(43)		(41)
Finance lease ROU assets, net (b)	$	185	$	224

Short-term vehicle finance lease liabilities	$	75	$	59
Long-term vehicle finance lease liabilities	68		113
Vehicle finance lease liabilities (c)	$	143	$	172

Weighted average remaining lease term	2.1 years		2.8 years
Weighted average discount rate	5.07%		3.68%

Operating
Vehicle operating lease ROU assets (d)	$	73	$	117

Short-term vehicle operating lease liabilities	$	58	$	83
Long-term vehicle operating lease liabilities	15		36
Vehicle operating lease liabilities (e)	$	73	$	119

Weighted average remaining lease term	1.3 years		1.5 years
Weighted average discount rate	5.20%		5.13%

_________

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

(b) Included in vehicles, net within assets under vehicle programs.

(d) Included in receivables from vehicle manufacturers and other within assets under vehicle programs.

(e) Included in other within liabilities under vehicle programs.

Supplemental cash flow information related to leases is as follows:


	Year Ended December 31,
	2024		2023		2022
Cash payments for lease liabilities within operating activities:
Property operating leases	$	947	$	838	$	743
Vehicle finance leases	7		6		3
Vehicle operating leases	151		167		137
Cash payments for lease liabilities within financing activities:
Vehicle finance leases	$	105	$	105	$	181
Non-cash activities - increase in ROU assets in exchange for lease liabilities:
Property operating leases	$	1,404	$	1,079	$	812
Vehicle finance leases	102		118		153
Vehicle operating leases	112		191		161

Maturities of lease liabilities as of December 31, 2024 are as follows:


	Property Operating Leases		Vehicle Finance Leases		Vehicle Operating Leases
Within 1 year	$	766	$	75	$	60
Between 1 and 2 years	579		—		10
Between 2 and 3 years	513		—		3
Between 3 and 4 years	415		61		1
Between 4 and 5 years	311		7		1
Thereafter	1,221		—		—
Total lease payments	3,805		143		75
Less: Imputed interest	(693)		—		(2)
Total	$	3,112	$	143	$	73