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Leases
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases Leases
The Company leases real estate, office equipment and service vehicles. The Company's leases have remaining lease terms of up to 20 years, some of which include options to extend the leases for up to 20 years. The Company determines the lease term used to record each lease by including the initial lease term and, in the case where there are options to extend, will include the option to extend if it has determined that it is reasonably certain that the Company would exercise those options.

The Company also leases certain equipment that it rents to its customers where the payments vary based upon the amount of time the equipment is on rent. There are no fixed payments on these leases and, therefore, no lease liability or ROU assets have been recorded. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term.
The components of lease expense consist of the following (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
Classification2023202220232022
Operating lease cost(a)
Direct operating$32 $37 $99 $103 
Finance lease cost:
Amortization of ROU assetsDepreciation and amortization6 6 17 16 
Interest on lease liabilitiesInterest expense, net— — 1 1 
Sublease incomeEquipment rental revenue(13)(23)(45)(62)
Net lease cost$25 $20 $72 $58 

(a) Includes short-term leases of $11 million and $39 million for the three and nine months ended September 30, 2023, respectively, and $18 million and $51 million for the three and nine months ended September 30, 2022, respectively, and variable lease costs of $1 million and $3 million for the three and nine months ended September 30, 2023, respectively, and $1 million and $2 million for the three and nine months ended September 30, 2022, respectively.
Leases Leases
The Company leases real estate, office equipment and service vehicles. The Company's leases have remaining lease terms of up to 20 years, some of which include options to extend the leases for up to 20 years. The Company determines the lease term used to record each lease by including the initial lease term and, in the case where there are options to extend, will include the option to extend if it has determined that it is reasonably certain that the Company would exercise those options.

The Company also leases certain equipment that it rents to its customers where the payments vary based upon the amount of time the equipment is on rent. There are no fixed payments on these leases and, therefore, no lease liability or ROU assets have been recorded. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term.
The components of lease expense consist of the following (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
Classification2023202220232022
Operating lease cost(a)
Direct operating$32 $37 $99 $103 
Finance lease cost:
Amortization of ROU assetsDepreciation and amortization6 6 17 16 
Interest on lease liabilitiesInterest expense, net— — 1 1 
Sublease incomeEquipment rental revenue(13)(23)(45)(62)
Net lease cost$25 $20 $72 $58 

(a) Includes short-term leases of $11 million and $39 million for the three and nine months ended September 30, 2023, respectively, and $18 million and $51 million for the three and nine months ended September 30, 2022, respectively, and variable lease costs of $1 million and $3 million for the three and nine months ended September 30, 2023, respectively, and $1 million and $2 million for the three and nine months ended September 30, 2022, respectively.