LEASES

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

LEASES

LEASES

Leases as Lessor

The components of revenue from leases were as follows:

	Years ended December 31,
	2020		2019		2018
	(In thousands)
Operating leases
Lease income related to ChoiceLease	$	1,565,579	$	1,505,913	$	1,369,025
Lease income related to commercial rental (1)	791,631		952,560		905,305
Sales-type leases
Interest income related to net investment in leases	$	49,244	$	46,801	$	38,385
Variable lease income excluding commercial rental (1)	$	289,165	$	272,065	$	244,911

_______________ 

(1)Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income.

The components of the net investment in sales-type leases were as follows:

	December 31,
	2020		2019
	(In thousands)
Net investment in the lease - lease payment receivable	$	589,120	$	553,076
Net investment in the lease - unguaranteed residual value in assets	44,704		44,952
	633,824		598,028
Estimated loss allowance (1)	(4,025)		(673)
Total (2)	$	629,799	$	597,355

_______________

(1)Amount as of December 31, 2020 reflects an immaterial cumulative-effect adjustment in connection with the adoption of the new credit loss standard (refer to Note 1, "Summary of Significant Accounting Policies," for further information).

(2)Net investment in the sales-type lease are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Balance Sheets.

Maturities of sales-type lease receivables as of December 31, 2020 were as follows:

Years ending December 31	(In thousands)
2021	$	174,421
2022	163,471
2023	124,641
2024	97,345
2025	70,662
Thereafter	91,713
Total undiscounted cash flows	722,253
Present value of lease payments (recognized as lease receivables)	(589,120)
Difference between undiscounted cash flows and discounted cash flows	$	133,133

Payments due for operating leases as of December 31, 2020 were as follows:

Years ending December 31	(In thousands)
2021	$	1,290,388
2022	968,254
2023	685,145
2024	474,389
2025	288,811
Thereafter	185,823
Total undiscounted cash flows	$	3,892,810

Leases as Lessee

The components of lease expense were as follows:

	Years ended December 31,
	2020		2019		2018
	(In thousands)
Finance lease cost
Amortization of right-of-use-assets	$	13,295	$	13,671	$	13,805
Interest on lease liabilities	2,344		2,565		2,546
Operating lease cost	92,227		94,039		87,741
Short-term lease and other	8,432		10,963		10,017
Variable lease cost	13,325		12,459		9,888
Sublease income	(27,223)		(22,385)		(23,261)
Total lease cost	$	102,400	$	111,312	$	100,736

Supplemental balance sheet information relates to leases was as follows:

	December 31,
	2020				2019
	Operating Lease		Finance Lease		Operating Lease		Finance Lease
	(In thousands)
Noncurrent assets (1)	$	255,964	$	39,571	$	214,809	$	44,190
Current liabilities (2)	78,785		13,282		72,285		12,381
Noncurrent liabilities (3)	186,429		35,136		151,361		39,336

_______________

(1)Operating lease right-of-use assets are included in "Sales-type leases and other assets" and finance lease assets are included in "Other property and equipment, net" and "Revenue earning equipment, net".

(2)Current operating lease liabilities are included in "Accrued expenses and other current liabilities" and current finance leases liabilities are included in "Short-term debt and current portion of long-term debt".

(3)Noncurrent operating lease liabilities are included in "Other non-current liabilities" and noncurrent finance lease liabilities are included in "Long-term debt".

	December 31,
	2020		2019
Weighted-average remaining lease term
Operating	4 years		4 years
Finance	6 years		7 years
Weighted-average discount rate
Operating	3.3	%	4.0	%
Finance	5.6	%	6.6	%

Maturities of operating and finance lease liabilities were as follows:

	Operating		Finance
	Leases		Leases		Total
Years ending December 31	(In thousands)
2021	$	85,612	$	15,179	$	100,791
2022	70,707		12,111		82,818
2023	56,981		9,291		66,272
2024	33,151		6,612		39,763
2025	20,281		3,345		23,626
Thereafter	15,738		9,112		24,850
Total lease payments	282,470		55,650		338,120
Less: Imputed Interest	(17,256)		(7,232)		(24,488)
Present value of lease liabilities	$	265,214	$	48,418	$	313,632

As of December 31, 2020, we have not entered into any additional facility operating leases that commence in 2021 and thereafter which have not been reflected on the Consolidated Balance Sheets.

LEASES

LEASES

Leases as Lessor

The components of revenue from leases were as follows:

	Years ended December 31,
	2020		2019		2018
	(In thousands)
Operating leases
Lease income related to ChoiceLease	$	1,565,579	$	1,505,913	$	1,369,025
Lease income related to commercial rental (1)	791,631		952,560		905,305
Sales-type leases
Interest income related to net investment in leases	$	49,244	$	46,801	$	38,385
Variable lease income excluding commercial rental (1)	$	289,165	$	272,065	$	244,911

_______________ 

(1)Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income.

The components of the net investment in sales-type leases were as follows:

	December 31,
	2020		2019
	(In thousands)
Net investment in the lease - lease payment receivable	$	589,120	$	553,076
Net investment in the lease - unguaranteed residual value in assets	44,704		44,952
	633,824		598,028
Estimated loss allowance (1)	(4,025)		(673)
Total (2)	$	629,799	$	597,355

_______________

(1)Amount as of December 31, 2020 reflects an immaterial cumulative-effect adjustment in connection with the adoption of the new credit loss standard (refer to Note 1, "Summary of Significant Accounting Policies," for further information).

(2)Net investment in the sales-type lease are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Balance Sheets.

Maturities of sales-type lease receivables as of December 31, 2020 were as follows:

Years ending December 31	(In thousands)
2021	$	174,421
2022	163,471
2023	124,641
2024	97,345
2025	70,662
Thereafter	91,713
Total undiscounted cash flows	722,253
Present value of lease payments (recognized as lease receivables)	(589,120)
Difference between undiscounted cash flows and discounted cash flows	$	133,133

Payments due for operating leases as of December 31, 2020 were as follows:

Years ending December 31	(In thousands)
2021	$	1,290,388
2022	968,254
2023	685,145
2024	474,389
2025	288,811
Thereafter	185,823
Total undiscounted cash flows	$	3,892,810

Leases as Lessee

The components of lease expense were as follows:

	Years ended December 31,
	2020		2019		2018
	(In thousands)
Finance lease cost
Amortization of right-of-use-assets	$	13,295	$	13,671	$	13,805
Interest on lease liabilities	2,344		2,565		2,546
Operating lease cost	92,227		94,039		87,741
Short-term lease and other	8,432		10,963		10,017
Variable lease cost	13,325		12,459		9,888
Sublease income	(27,223)		(22,385)		(23,261)
Total lease cost	$	102,400	$	111,312	$	100,736

Supplemental balance sheet information relates to leases was as follows:

	December 31,
	2020				2019
	Operating Lease		Finance Lease		Operating Lease		Finance Lease
	(In thousands)
Noncurrent assets (1)	$	255,964	$	39,571	$	214,809	$	44,190
Current liabilities (2)	78,785		13,282		72,285		12,381
Noncurrent liabilities (3)	186,429		35,136		151,361		39,336

_______________

(1)Operating lease right-of-use assets are included in "Sales-type leases and other assets" and finance lease assets are included in "Other property and equipment, net" and "Revenue earning equipment, net".

(2)Current operating lease liabilities are included in "Accrued expenses and other current liabilities" and current finance leases liabilities are included in "Short-term debt and current portion of long-term debt".

(3)Noncurrent operating lease liabilities are included in "Other non-current liabilities" and noncurrent finance lease liabilities are included in "Long-term debt".

	December 31,
	2020		2019
Weighted-average remaining lease term
Operating	4 years		4 years
Finance	6 years		7 years
Weighted-average discount rate
Operating	3.3	%	4.0	%
Finance	5.6	%	6.6	%

Maturities of operating and finance lease liabilities were as follows:

	Operating		Finance
	Leases		Leases		Total
Years ending December 31	(In thousands)
2021	$	85,612	$	15,179	$	100,791
2022	70,707		12,111		82,818
2023	56,981		9,291		66,272
2024	33,151		6,612		39,763
2025	20,281		3,345		23,626
Thereafter	15,738		9,112		24,850
Total lease payments	282,470		55,650		338,120
Less: Imputed Interest	(17,256)		(7,232)		(24,488)
Present value of lease liabilities	$	265,214	$	48,418	$	313,632

As of December 31, 2020, we have not entered into any additional facility operating leases that commence in 2021 and thereafter which have not been reflected on the Consolidated Balance Sheets.

LEASES

LEASES

Leases as Lessor

The components of revenue from leases were as follows:

	Years ended December 31,
	2020		2019		2018
	(In thousands)
Operating leases
Lease income related to ChoiceLease	$	1,565,579	$	1,505,913	$	1,369,025
Lease income related to commercial rental (1)	791,631		952,560		905,305
Sales-type leases
Interest income related to net investment in leases	$	49,244	$	46,801	$	38,385
Variable lease income excluding commercial rental (1)	$	289,165	$	272,065	$	244,911

_______________ 

(1)Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income.

The components of the net investment in sales-type leases were as follows:

	December 31,
	2020		2019
	(In thousands)
Net investment in the lease - lease payment receivable	$	589,120	$	553,076
Net investment in the lease - unguaranteed residual value in assets	44,704		44,952
	633,824		598,028
Estimated loss allowance (1)	(4,025)		(673)
Total (2)	$	629,799	$	597,355

_______________

(1)Amount as of December 31, 2020 reflects an immaterial cumulative-effect adjustment in connection with the adoption of the new credit loss standard (refer to Note 1, "Summary of Significant Accounting Policies," for further information).

(2)Net investment in the sales-type lease are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Balance Sheets.

Maturities of sales-type lease receivables as of December 31, 2020 were as follows:

Years ending December 31	(In thousands)
2021	$	174,421
2022	163,471
2023	124,641
2024	97,345
2025	70,662
Thereafter	91,713
Total undiscounted cash flows	722,253
Present value of lease payments (recognized as lease receivables)	(589,120)
Difference between undiscounted cash flows and discounted cash flows	$	133,133

Payments due for operating leases as of December 31, 2020 were as follows:

Years ending December 31	(In thousands)
2021	$	1,290,388
2022	968,254
2023	685,145
2024	474,389
2025	288,811
Thereafter	185,823
Total undiscounted cash flows	$	3,892,810

Leases as Lessee

The components of lease expense were as follows:

	Years ended December 31,
	2020		2019		2018
	(In thousands)
Finance lease cost
Amortization of right-of-use-assets	$	13,295	$	13,671	$	13,805
Interest on lease liabilities	2,344		2,565		2,546
Operating lease cost	92,227		94,039		87,741
Short-term lease and other	8,432		10,963		10,017
Variable lease cost	13,325		12,459		9,888
Sublease income	(27,223)		(22,385)		(23,261)
Total lease cost	$	102,400	$	111,312	$	100,736

Supplemental balance sheet information relates to leases was as follows:

	December 31,
	2020				2019
	Operating Lease		Finance Lease		Operating Lease		Finance Lease
	(In thousands)
Noncurrent assets (1)	$	255,964	$	39,571	$	214,809	$	44,190
Current liabilities (2)	78,785		13,282		72,285		12,381
Noncurrent liabilities (3)	186,429		35,136		151,361		39,336

_______________

(1)Operating lease right-of-use assets are included in "Sales-type leases and other assets" and finance lease assets are included in "Other property and equipment, net" and "Revenue earning equipment, net".

(2)Current operating lease liabilities are included in "Accrued expenses and other current liabilities" and current finance leases liabilities are included in "Short-term debt and current portion of long-term debt".

(3)Noncurrent operating lease liabilities are included in "Other non-current liabilities" and noncurrent finance lease liabilities are included in "Long-term debt".

	December 31,
	2020		2019
Weighted-average remaining lease term
Operating	4 years		4 years
Finance	6 years		7 years
Weighted-average discount rate
Operating	3.3	%	4.0	%
Finance	5.6	%	6.6	%

Maturities of operating and finance lease liabilities were as follows:

	Operating		Finance
	Leases		Leases		Total
Years ending December 31	(In thousands)
2021	$	85,612	$	15,179	$	100,791
2022	70,707		12,111		82,818
2023	56,981		9,291		66,272
2024	33,151		6,612		39,763
2025	20,281		3,345		23,626
Thereafter	15,738		9,112		24,850
Total lease payments	282,470		55,650		338,120
Less: Imputed Interest	(17,256)		(7,232)		(24,488)
Present value of lease liabilities	$	265,214	$	48,418	$	313,632

As of December 31, 2020, we have not entered into any additional facility operating leases that commence in 2021 and thereafter which have not been reflected on the Consolidated Balance Sheets.

LEASES

LEASES

Leases as Lessor

The components of revenue from leases were as follows:

	Years ended December 31,
	2020		2019		2018
	(In thousands)
Operating leases
Lease income related to ChoiceLease	$	1,565,579	$	1,505,913	$	1,369,025
Lease income related to commercial rental (1)	791,631		952,560		905,305
Sales-type leases
Interest income related to net investment in leases	$	49,244	$	46,801	$	38,385
Variable lease income excluding commercial rental (1)	$	289,165	$	272,065	$	244,911

_______________ 

(1)Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% to 25% of total commercial rental income.

The components of the net investment in sales-type leases were as follows:

	December 31,
	2020		2019
	(In thousands)
Net investment in the lease - lease payment receivable	$	589,120	$	553,076
Net investment in the lease - unguaranteed residual value in assets	44,704		44,952
	633,824		598,028
Estimated loss allowance (1)	(4,025)		(673)
Total (2)	$	629,799	$	597,355

_______________

(1)Amount as of December 31, 2020 reflects an immaterial cumulative-effect adjustment in connection with the adoption of the new credit loss standard (refer to Note 1, "Summary of Significant Accounting Policies," for further information).

(2)Net investment in the sales-type lease are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Balance Sheets.

Maturities of sales-type lease receivables as of December 31, 2020 were as follows:

Years ending December 31	(In thousands)
2021	$	174,421
2022	163,471
2023	124,641
2024	97,345
2025	70,662
Thereafter	91,713
Total undiscounted cash flows	722,253
Present value of lease payments (recognized as lease receivables)	(589,120)
Difference between undiscounted cash flows and discounted cash flows	$	133,133

Payments due for operating leases as of December 31, 2020 were as follows:

Years ending December 31	(In thousands)
2021	$	1,290,388
2022	968,254
2023	685,145
2024	474,389
2025	288,811
Thereafter	185,823
Total undiscounted cash flows	$	3,892,810

Leases as Lessee

The components of lease expense were as follows:

	Years ended December 31,
	2020		2019		2018
	(In thousands)
Finance lease cost
Amortization of right-of-use-assets	$	13,295	$	13,671	$	13,805
Interest on lease liabilities	2,344		2,565		2,546
Operating lease cost	92,227		94,039		87,741
Short-term lease and other	8,432		10,963		10,017
Variable lease cost	13,325		12,459		9,888
Sublease income	(27,223)		(22,385)		(23,261)
Total lease cost	$	102,400	$	111,312	$	100,736

Supplemental balance sheet information relates to leases was as follows:

	December 31,
	2020				2019
	Operating Lease		Finance Lease		Operating Lease		Finance Lease
	(In thousands)
Noncurrent assets (1)	$	255,964	$	39,571	$	214,809	$	44,190
Current liabilities (2)	78,785		13,282		72,285		12,381
Noncurrent liabilities (3)	186,429		35,136		151,361		39,336

_______________

(1)Operating lease right-of-use assets are included in "Sales-type leases and other assets" and finance lease assets are included in "Other property and equipment, net" and "Revenue earning equipment, net".

(2)Current operating lease liabilities are included in "Accrued expenses and other current liabilities" and current finance leases liabilities are included in "Short-term debt and current portion of long-term debt".

(3)Noncurrent operating lease liabilities are included in "Other non-current liabilities" and noncurrent finance lease liabilities are included in "Long-term debt".

	December 31,
	2020		2019
Weighted-average remaining lease term
Operating	4 years		4 years
Finance	6 years		7 years
Weighted-average discount rate
Operating	3.3	%	4.0	%
Finance	5.6	%	6.6	%

Maturities of operating and finance lease liabilities were as follows:

	Operating		Finance
	Leases		Leases		Total
Years ending December 31	(In thousands)
2021	$	85,612	$	15,179	$	100,791
2022	70,707		12,111		82,818
2023	56,981		9,291		66,272
2024	33,151		6,612		39,763
2025	20,281		3,345		23,626
Thereafter	15,738		9,112		24,850
Total lease payments	282,470		55,650		338,120
Less: Imputed Interest	(17,256)		(7,232)		(24,488)
Present value of lease liabilities	$	265,214	$	48,418	$	313,632

As of December 31, 2020, we have not entered into any additional facility operating leases that commence in 2021 and thereafter which have not been reflected on the Consolidated Balance Sheets.