AVIS BUDGET GROUP, INC.CAR
AVIS BUDGET GROUP, INC. Leases Disclosure
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 | ||||||||||||||
| $ | 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.
(c) Included in vehicle interest, 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 .
(b) Included in .
(c) Included in .
(d) Included in .
(e) Included in .
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 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2019 | Feb 20, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.