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Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Leases

Lessor

The following table presents the Company’s lease revenues disaggregated by geography:

			Three Months Ended  September 30,												Nine Months Ended  September 30,
			2021						2020						2021						2020
Americas			$	2,391					$	1,099					$	5,417					$	2,896
Europe, Middle East and Africa			508						350						968						843
Asia and Australasia			68						55						266						224
Total lease revenues			$	2,967					$	1,504					$	6,651					$	3,963

The following table presents the Company’s lease revenues disaggregated by brand:

			Three Months Ended  September 30,												Nine Months Ended  September 30,
			2021						2020						2021						2020
Avis			$	1,573					$	824					$	3,464					$	2,181
Budget			1,185						532						2,676						1,401
Other			209						148						511						381
Total lease revenues			$	2,967					$	1,504					$	6,651					$	3,963

_______

Other includes Zipcar and other operating brands.

Lessee

The Company has operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of the Company’s operating leases for rental locations contain concession agreements with various airport authorities that allow the Company to conduct its 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. The Company’s operating leases for rental locations often also require the Company to pay or reimburse operating expenses.

The components of lease expense are as follows:

			Three Months Ended  September 30,												Nine Months Ended  September 30,
			2021						2020						2021						2020
Property leases (a)
Operating lease expense			$	146					$	130					$	419					$	443
Variable lease expense			152						51						318						107
Total property lease expense			$	298					$	181					$	737					$	550

__________

(a)    Primarily within operating expense and includes $(4) million and $11 million for the three months ended September 30, 2021 and 2020, respectively, and $12 million and $41 million for the nine months ended September 30, 2021 and 2020, respectively, of minimum annual guaranteed rent in excess of concession fees, net, as defined in our rental concession agreements.

Supplemental balance sheet information related to leases is as follows:

			As of  September 30, 2021						As of  December 31, 2020
Property leases
Operating lease ROU assets			$	2,309					$	2,560
Short-term operating lease liabilities (a)			$	484					$	514
Long-term operating lease liabilities			1,862						2,078
Operating lease liabilities			$	2,346					$	2,592
Weighted average remaining lease term			8.2 years						8.4 years
Weighted average discount rate			3.86		%				3.86		%

_________

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

Supplemental cash flow information related to leases is as follows:

			Nine Months Ended  September 30,
			2021						2020
Cash payments for lease liabilities within operating activities:
Property operating leases			$	445					$	554
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases			$	226					$	588

Leases

Leases

Lessor

The following table presents the Company’s lease revenues disaggregated by geography:

			Three Months Ended  September 30,												Nine Months Ended  September 30,
			2021						2020						2021						2020
Americas			$	2,391					$	1,099					$	5,417					$	2,896
Europe, Middle East and Africa			508						350						968						843
Asia and Australasia			68						55						266						224
Total lease revenues			$	2,967					$	1,504					$	6,651					$	3,963

The following table presents the Company’s lease revenues disaggregated by brand:

			Three Months Ended  September 30,												Nine Months Ended  September 30,
			2021						2020						2021						2020
Avis			$	1,573					$	824					$	3,464					$	2,181
Budget			1,185						532						2,676						1,401
Other			209						148						511						381
Total lease revenues			$	2,967					$	1,504					$	6,651					$	3,963

_______

Other includes Zipcar and other operating brands.

Lessee

The Company has operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of the Company’s operating leases for rental locations contain concession agreements with various airport authorities that allow the Company to conduct its 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. The Company’s operating leases for rental locations often also require the Company to pay or reimburse operating expenses.

The components of lease expense are as follows:

			Three Months Ended  September 30,												Nine Months Ended  September 30,
			2021						2020						2021						2020
Property leases (a)
Operating lease expense			$	146					$	130					$	419					$	443
Variable lease expense			152						51						318						107
Total property lease expense			$	298					$	181					$	737					$	550

__________

(a)    Primarily within operating expense and includes $(4) million and $11 million for the three months ended September 30, 2021 and 2020, respectively, and $12 million and $41 million for the nine months ended September 30, 2021 and 2020, respectively, of minimum annual guaranteed rent in excess of concession fees, net, as defined in our rental concession agreements.

Supplemental balance sheet information related to leases is as follows:

			As of  September 30, 2021						As of  December 31, 2020
Property leases
Operating lease ROU assets			$	2,309					$	2,560
Short-term operating lease liabilities (a)			$	484					$	514
Long-term operating lease liabilities			1,862						2,078
Operating lease liabilities			$	2,346					$	2,592
Weighted average remaining lease term			8.2 years						8.4 years
Weighted average discount rate			3.86		%				3.86		%

_________

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

Supplemental cash flow information related to leases is as follows:

			Nine Months Ended  September 30,
			2021						2020
Cash payments for lease liabilities within operating activities:
Property operating leases			$	445					$	554
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases			$	226					$	588

Leases

Leases

Lessor

The following table presents the Company’s lease revenues disaggregated by geography:

			Three Months Ended  September 30,												Nine Months Ended  September 30,
			2021						2020						2021						2020
Americas			$	2,391					$	1,099					$	5,417					$	2,896
Europe, Middle East and Africa			508						350						968						843
Asia and Australasia			68						55						266						224
Total lease revenues			$	2,967					$	1,504					$	6,651					$	3,963

The following table presents the Company’s lease revenues disaggregated by brand:

			Three Months Ended  September 30,												Nine Months Ended  September 30,
			2021						2020						2021						2020
Avis			$	1,573					$	824					$	3,464					$	2,181
Budget			1,185						532						2,676						1,401
Other			209						148						511						381
Total lease revenues			$	2,967					$	1,504					$	6,651					$	3,963

_______

Other includes Zipcar and other operating brands.

Lessee

The Company has operating and finance leases for rental locations, corporate offices, vehicle rental fleet and equipment. Many of the Company’s operating leases for rental locations contain concession agreements with various airport authorities that allow the Company to conduct its 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. The Company’s operating leases for rental locations often also require the Company to pay or reimburse operating expenses.

The components of lease expense are as follows:

			Three Months Ended  September 30,												Nine Months Ended  September 30,
			2021						2020						2021						2020
Property leases (a)
Operating lease expense			$	146					$	130					$	419					$	443
Variable lease expense			152						51						318						107
Total property lease expense			$	298					$	181					$	737					$	550

__________

(a)    Primarily within operating expense and includes $(4) million and $11 million for the three months ended September 30, 2021 and 2020, respectively, and $12 million and $41 million for the nine months ended September 30, 2021 and 2020, respectively, of minimum annual guaranteed rent in excess of concession fees, net, as defined in our rental concession agreements.

Supplemental balance sheet information related to leases is as follows:

			As of  September 30, 2021						As of  December 31, 2020
Property leases
Operating lease ROU assets			$	2,309					$	2,560
Short-term operating lease liabilities (a)			$	484					$	514
Long-term operating lease liabilities			1,862						2,078
Operating lease liabilities			$	2,346					$	2,592
Weighted average remaining lease term			8.2 years						8.4 years
Weighted average discount rate			3.86		%				3.86		%

_________

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

Supplemental cash flow information related to leases is as follows:

			Nine Months Ended  September 30,
			2021						2020
Cash payments for lease liabilities within operating activities:
Property operating leases			$	445					$	554
Non-cash activities - increase (decrease) in ROU assets in exchange for lease liabilities:
Property operating leases			$	226					$	588

X

- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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X

- Definition

The entire disclosure for lessor's operating leases.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 30
-URI http://asc.fasb.org/subtopic&trid=77888252

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