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Leases

12 Months Ended

Dec. 31, 2025

Lessor

The following table presents our lease revenues disaggregated by geography:


	Year Ended December 31,
	2025		2024		2023
Americas	$	8,809	$	8,970	$	9,261
Europe, Middle East and Africa	2,025		1,958		1,932
Asia and Australasia	616		615		628
Total lease revenues	$	11,450	$	11,543	$	11,821

The following table presents our lease revenues disaggregated by brand:


	Year Ended December 31,
	2025		2024		2023
Avis	$	6,478	$	6,609	$	6,660
Budget	4,272		4,220		4,425
Other (a)	700		714		736
Total lease revenues	$	11,450	$	11,543	$	11,821

________

(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 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, 2025, we have no guarantees of residual values for vehicles under operating leases at the end of their respective lease terms. As of December 31, 2024, we had guaranteed up to $30 million of residual values for vehicles under operating leases 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,
	2025		2024		2023
Property leases
Operating lease expense	$	957	$	935	$	860
Variable lease expense	338		343		402
Sublease income	(6)		(6)		(6)
Total property lease expense (a)	$	1,289	$	1,272	$	1,256

Vehicle leases
Finance lease expense:
Amortization of right-of-use assets (b)	$	18	$	27	$	28
Interest on lease liabilities (c)	6		7		6
Operating lease expense (b)	120		151		167
Total vehicle lease expense	$	144	$	185	$	201

__________

(a) Primarily included in operating expenses.

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

Supplemental balance sheet information related to leases is as follows:


	As of December 31,
	2025		2024
Property leases
Operating lease right-of-use assets	$	3,239	$	3,057

Short-term operating lease liabilities (a)	$	680	$	628
Long-term operating lease liabilities	2,614		2,484
Operating lease liabilities	$	3,294	$	3,112

Weighted average remaining lease term	7.6 years		8.0 years
Weighted average discount rate	5.35%		4.98%


Vehicle finance leases
Vehicle finance lease right-of-use assets, gross	$	209	$	228
Accumulated amortization	(37)		(43)
Vehicle finance lease right-of-use assets, net (b)	$	172	$	185

Short-term vehicle finance lease liabilities	$	79	$	75
Long-term vehicle finance lease liabilities	51		68
Vehicle finance lease liabilities (c)	$	130	$	143

Weighted average remaining lease term	1.4 years		2.1 years
Weighted average discount rate	3.81%		5.07%

Vehicle operating leases
Vehicle operating lease right-of-use assets (d)	$	42	$	73

Short-term vehicle operating lease liabilities	$	35	$	58
Long-term vehicle operating lease liabilities	7		15
Vehicle operating lease liabilities (e)	$	42	$	73

Weighted average remaining lease term	1.2 years		1.3 years
Weighted average discount rate	4.54%		5.20%

__________

(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,
	2025		2024		2023
Cash payments for lease liabilities within operating activities:
Property operating leases	$	963	$	947	$	838
Vehicle finance leases	6		7		6
Vehicle operating leases	119		151		167
Cash payments for lease liabilities within financing activities:
Vehicle finance leases	$	103	$	105	$	105
Non-cash activities - increase in right-of-use assets in exchange for lease liabilities:
Property operating leases	$	1,086	$	1,404	$	1,079
Vehicle finance leases	74		102		118
Vehicle operating leases	81		112		191

Maturities of lease liabilities as of December 31, 2025 are as follows:


	Property Operating Leases		Vehicle Finance Leases		Vehicle Operating Leases
Within 1 year	$	830	$	79	$	36
Between 1 and 2 years	654		8		5
Between 2 and 3 years	543		29		1
Between 3 and 4 years	434		—		1
Between 4 and 5 years	298		14		—
Thereafter	1,248		—		—
Total lease payments	4,007		130		43
Less: Imputed interest	(713)		—		(1)
Total	$	3,294	$	130	$	42

Leases

Lessor

The following table presents our lease revenues disaggregated by geography:


	Year Ended December 31,
	2025		2024		2023
Americas	$	8,809	$	8,970	$	9,261
Europe, Middle East and Africa	2,025		1,958		1,932
Asia and Australasia	616		615		628
Total lease revenues	$	11,450	$	11,543	$	11,821

The following table presents our lease revenues disaggregated by brand:


	Year Ended December 31,
	2025		2024		2023
Avis	$	6,478	$	6,609	$	6,660
Budget	4,272		4,220		4,425
Other (a)	700		714		736
Total lease revenues	$	11,450	$	11,543	$	11,821

________

(a) Other includes Zipcar and other operating brands.

Lessee

The components of lease expense are as follows:


	Year Ended December 31,
	2025		2024		2023
Property leases
Operating lease expense	$	957	$	935	$	860
Variable lease expense	338		343		402
Sublease income	(6)		(6)		(6)
Total property lease expense (a)	$	1,289	$	1,272	$	1,256

Vehicle leases
Finance lease expense:
Amortization of right-of-use assets (b)	$	18	$	27	$	28
Interest on lease liabilities (c)	6		7		6
Operating lease expense (b)	120		151		167
Total vehicle lease expense	$	144	$	185	$	201

__________

(a) Primarily included in operating expenses.

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

Supplemental balance sheet information related to leases is as follows:


	As of December 31,
	2025		2024
Property leases
Operating lease right-of-use assets	$	3,239	$	3,057

Short-term operating lease liabilities (a)	$	680	$	628
Long-term operating lease liabilities	2,614		2,484
Operating lease liabilities	$	3,294	$	3,112

Weighted average remaining lease term	7.6 years		8.0 years
Weighted average discount rate	5.35%		4.98%


Vehicle finance leases
Vehicle finance lease right-of-use assets, gross	$	209	$	228
Accumulated amortization	(37)		(43)
Vehicle finance lease right-of-use assets, net (b)	$	172	$	185

Short-term vehicle finance lease liabilities	$	79	$	75
Long-term vehicle finance lease liabilities	51		68
Vehicle finance lease liabilities (c)	$	130	$	143

Weighted average remaining lease term	1.4 years		2.1 years
Weighted average discount rate	3.81%		5.07%

Vehicle operating leases
Vehicle operating lease right-of-use assets (d)	$	42	$	73

Short-term vehicle operating lease liabilities	$	35	$	58
Long-term vehicle operating lease liabilities	7		15
Vehicle operating lease liabilities (e)	$	42	$	73

Weighted average remaining lease term	1.2 years		1.3 years
Weighted average discount rate	4.54%		5.20%

__________

(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,
	2025		2024		2023
Cash payments for lease liabilities within operating activities:
Property operating leases	$	963	$	947	$	838
Vehicle finance leases	6		7		6
Vehicle operating leases	119		151		167
Cash payments for lease liabilities within financing activities:
Vehicle finance leases	$	103	$	105	$	105
Non-cash activities - increase in right-of-use assets in exchange for lease liabilities:
Property operating leases	$	1,086	$	1,404	$	1,079
Vehicle finance leases	74		102		118
Vehicle operating leases	81		112		191

Maturities of lease liabilities as of December 31, 2025 are as follows:


	Property Operating Leases		Vehicle Finance Leases		Vehicle Operating Leases
Within 1 year	$	830	$	79	$	36
Between 1 and 2 years	654		8		5
Between 2 and 3 years	543		29		1
Between 3 and 4 years	434		—		1
Between 4 and 5 years	298		14		—
Thereafter	1,248		—		—
Total lease payments	4,007		130		43
Less: Imputed interest	(713)		—		(1)
Total	$	3,294	$	130	$	42

Leases

Lessor

The following table presents our lease revenues disaggregated by geography:


	Year Ended December 31,
	2025		2024		2023
Americas	$	8,809	$	8,970	$	9,261
Europe, Middle East and Africa	2,025		1,958		1,932
Asia and Australasia	616		615		628
Total lease revenues	$	11,450	$	11,543	$	11,821

The following table presents our lease revenues disaggregated by brand:


	Year Ended December 31,
	2025		2024		2023
Avis	$	6,478	$	6,609	$	6,660
Budget	4,272		4,220		4,425
Other (a)	700		714		736
Total lease revenues	$	11,450	$	11,543	$	11,821

________

(a) Other includes Zipcar and other operating brands.

Lessee

The components of lease expense are as follows:


	Year Ended December 31,
	2025		2024		2023
Property leases
Operating lease expense	$	957	$	935	$	860
Variable lease expense	338		343		402
Sublease income	(6)		(6)		(6)
Total property lease expense (a)	$	1,289	$	1,272	$	1,256

Vehicle leases
Finance lease expense:
Amortization of right-of-use assets (b)	$	18	$	27	$	28
Interest on lease liabilities (c)	6		7		6
Operating lease expense (b)	120		151		167
Total vehicle lease expense	$	144	$	185	$	201

__________

(a) Primarily included in operating expenses.

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

Supplemental balance sheet information related to leases is as follows:


	As of December 31,
	2025		2024
Property leases
Operating lease right-of-use assets	$	3,239	$	3,057

Short-term operating lease liabilities (a)	$	680	$	628
Long-term operating lease liabilities	2,614		2,484
Operating lease liabilities	$	3,294	$	3,112

Weighted average remaining lease term	7.6 years		8.0 years
Weighted average discount rate	5.35%		4.98%


Vehicle finance leases
Vehicle finance lease right-of-use assets, gross	$	209	$	228
Accumulated amortization	(37)		(43)
Vehicle finance lease right-of-use assets, net (b)	$	172	$	185

Short-term vehicle finance lease liabilities	$	79	$	75
Long-term vehicle finance lease liabilities	51		68
Vehicle finance lease liabilities (c)	$	130	$	143

Weighted average remaining lease term	1.4 years		2.1 years
Weighted average discount rate	3.81%		5.07%

Vehicle operating leases
Vehicle operating lease right-of-use assets (d)	$	42	$	73

Short-term vehicle operating lease liabilities	$	35	$	58
Long-term vehicle operating lease liabilities	7		15
Vehicle operating lease liabilities (e)	$	42	$	73

Weighted average remaining lease term	1.2 years		1.3 years
Weighted average discount rate	4.54%		5.20%

__________

(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,
	2025		2024		2023
Cash payments for lease liabilities within operating activities:
Property operating leases	$	963	$	947	$	838
Vehicle finance leases	6		7		6
Vehicle operating leases	119		151		167
Cash payments for lease liabilities within financing activities:
Vehicle finance leases	$	103	$	105	$	105
Non-cash activities - increase in right-of-use assets in exchange for lease liabilities:
Property operating leases	$	1,086	$	1,404	$	1,079
Vehicle finance leases	74		102		118
Vehicle operating leases	81		112		191

Maturities of lease liabilities as of December 31, 2025 are as follows:


	Property Operating Leases		Vehicle Finance Leases		Vehicle Operating Leases
Within 1 year	$	830	$	79	$	36
Between 1 and 2 years	654		8		5
Between 2 and 3 years	543		29		1
Between 3 and 4 years	434		—		1
Between 4 and 5 years	298		14		—
Thereafter	1,248		—		—
Total lease payments	4,007		130		43
Less: Imputed interest	(713)		—		(1)
Total	$	3,294	$	130	$	42