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Leases | 12 Months Ended
--- | ---
Dec. 31, 2024
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 23 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 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):
|  |  | Years Ended December 31,
| Classification |  | 2024 |  | 2023
Operating lease cost(a) | Direct operating |  | $ | 158 |  |  | $ | 132 |
Finance lease cost: |  |  |  |  |
Amortization of ROU assets | Depreciation and amortization |  | 16 |  |  | 14 |
Interest on lease liabilities | Interest expense, net |  | 3 |  |  | 2 |
Sublease income | Equipment rental revenue |  | (77) |  |  | (61) |
Net lease cost |  | $ | 100 |  |  | $ | 87 |
(a) Includes short-term leases of $62 million and $52 million for the year ended December 31, 2024 and 2023, respectively, and variable lease costs of $6 million and $3 million for the year ended December 31, 2024 and 2023, respectively. Balance sheet information related to leases consists of the following (in millions):
| Classification |  | December 31, 2024 |  | December 31, 2023
Assets |  |  |  |  |
Operating lease ROU assets | Right-of-use assets |  | $ | 852 |  |  | $ | 665 |
Finance lease ROU assets | Property and equipment, net(a) |  | 74 |  |  | 74 |
Total leased assets |  | $ | 926 |  |  | $ | 739 |
Liabilities |  |  |  |  |
Current: |  |  |  |  |
Operating | Current maturities of operating lease liabilities |  | $ | 39 |  |  | $ | 37 |
Finance | Current maturities of long-term debt and financing obligations |  | 17 |  |  | 15 |
Non-current: |  |  |  |  |
Operating | Operating lease liabilities |  | 842 |  |  | 646 |
Finance | Long-term debt, net |  | 60 |  |  | 61 |
Total lease liabilities |  | $ | 958 |  |  | $ | 759 |
(a) Finance lease right-of-use assets are recorded net of accumulated amortization of $52 million and $37 million for the years ended December 31, 2024 and 2023, respectively.
| Years Ended December 31,
| 2024 |  | 2023
Weighted average remaining lease term: |  |  |
Operating leases | 17.1 |  | 16.8
Finance leases | 5.1 |  | 5.4
Weighted average discount rate: |  |  |
Operating leases | 4.31 | % |  | 3.95 | %
Finance leases | 4.29 | % |  | 4.01 | %
Cash flow information related to leases consists of the following (in millions):
| Years Ended December 31,
| 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 51 |  |  | $ | 49 |
Operating cash flows from finance leases | 3 |  |  | 2 |
Financing cash flows from finance leases | 16 |  |  | 12 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases | 300 |  |  | 291 |
Finance leases | 17 |  |  | 24 |
Maturities of lease liabilities are as follows (in millions):
| Operating Leases |  | Finance Leases
2025 | $ | 76 |  |  | $ | 20 |
2026 | 82 |  |  | 18 |
2027 | 78 |  |  | 14 |
2028 | 75 |  |  | 13 |
2029 | 72 |  |  | 11 |
Thereafter | 942 |  |  | 11 |
Total lease payments | 1,325 |  |  | 87 |
Less: Interest | (444) |  |  | (10) |
Present value of lease liabilities | $ | 881 |  |  | $ | 77 |
Leases | Leases The Company leases real estate, office equipment and service vehicles. The Company's leases have remaining lease terms of up to 23 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 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):
|  |  | Years Ended December 31,
| Classification |  | 2024 |  | 2023
Operating lease cost(a) | Direct operating |  | $ | 158 |  |  | $ | 132 |
Finance lease cost: |  |  |  |  |
Amortization of ROU assets | Depreciation and amortization |  | 16 |  |  | 14 |
Interest on lease liabilities | Interest expense, net |  | 3 |  |  | 2 |
Sublease income | Equipment rental revenue |  | (77) |  |  | (61) |
Net lease cost |  | $ | 100 |  |  | $ | 87 |
(a) Includes short-term leases of $62 million and $52 million for the year ended December 31, 2024 and 2023, respectively, and variable lease costs of $6 million and $3 million for the year ended December 31, 2024 and 2023, respectively. Balance sheet information related to leases consists of the following (in millions):
| Classification |  | December 31, 2024 |  | December 31, 2023
Assets |  |  |  |  |
Operating lease ROU assets | Right-of-use assets |  | $ | 852 |  |  | $ | 665 |
Finance lease ROU assets | Property and equipment, net(a) |  | 74 |  |  | 74 |
Total leased assets |  | $ | 926 |  |  | $ | 739 |
Liabilities |  |  |  |  |
Current: |  |  |  |  |
Operating | Current maturities of operating lease liabilities |  | $ | 39 |  |  | $ | 37 |
Finance | Current maturities of long-term debt and financing obligations |  | 17 |  |  | 15 |
Non-current: |  |  |  |  |
Operating | Operating lease liabilities |  | 842 |  |  | 646 |
Finance | Long-term debt, net |  | 60 |  |  | 61 |
Total lease liabilities |  | $ | 958 |  |  | $ | 759 |
(a) Finance lease right-of-use assets are recorded net of accumulated amortization of $52 million and $37 million for the years ended December 31, 2024 and 2023, respectively.
| Years Ended December 31,
| 2024 |  | 2023
Weighted average remaining lease term: |  |  |
Operating leases | 17.1 |  | 16.8
Finance leases | 5.1 |  | 5.4
Weighted average discount rate: |  |  |
Operating leases | 4.31 | % |  | 3.95 | %
Finance leases | 4.29 | % |  | 4.01 | %
Cash flow information related to leases consists of the following (in millions):
| Years Ended December 31,
| 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 51 |  |  | $ | 49 |
Operating cash flows from finance leases | 3 |  |  | 2 |
Financing cash flows from finance leases | 16 |  |  | 12 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases | 300 |  |  | 291 |
Finance leases | 17 |  |  | 24 |
Maturities of lease liabilities are as follows (in millions):
| Operating Leases |  | Finance Leases
2025 | $ | 76 |  |  | $ | 20 |
2026 | 82 |  |  | 18 |
2027 | 78 |  |  | 14 |
2028 | 75 |  |  | 13 |
2029 | 72 |  |  | 11 |
Thereafter | 942 |  |  | 11 |
Total lease payments | 1,325 |  |  | 87 |
Less: Interest | (444) |  |  | (10) |
Present value of lease liabilities | $ | 881 |  |  | $ | 77 |

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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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