Sunbelt Rentals Holdings, Inc. Leases Disclosure
| April 30, | ||||||||||||||
| (In millions) | Classification | 2026 | 2025 | |||||||||||
| Assets | ||||||||||||||
Operating lease assets | $ | 2,664 | $ | 2,523 | ||||||||||
Finance lease assets | Property and equipment, net: | |||||||||||||
Non-rental vehicles | 46 | 52 | ||||||||||||
Property | 150 | 142 | ||||||||||||
Less: accumulated amortization | (49) | (40) | ||||||||||||
| Total lease assets | $ | 2,811 | $ | 2,677 | ||||||||||
| Liabilities | ||||||||||||||
| Current | ||||||||||||||
Operating | $ | 287 | $ | 266 | ||||||||||
Finance | 24 | 7 | ||||||||||||
| Long-term | ||||||||||||||
Operating | 2,577 | 2,434 | ||||||||||||
Finance | 147 | 169 | ||||||||||||
| Total lease liabilities | $ | 3,035 | $ | 2,876 | ||||||||||
| Year Ended April 30, | ||||||||||||||||||||
| (In millions) | Classification | 2026 | 2025 | 2024 | ||||||||||||||||
Operating lease cost (1) | Cost of equipment rentals, excluding depreciation | $ | 326 | $ | 300 | $ | 277 | |||||||||||||
Selling, general and administrative expenses | 12 | 14 | 12 | |||||||||||||||||
| Finance lease cost | ||||||||||||||||||||
Amortization of ROU assets | Non-rental depreciation and amortization | 13 | 14 | 12 | ||||||||||||||||
Interest on lease liabilities | Interest expense, net | 7 | 9 | 7 | ||||||||||||||||
Sublease income | Cost of equipment rentals, excluding depreciation | (18) | (12) | (12) | ||||||||||||||||
| Net lease cost | $ | 340 | $ | 325 | $ | 296 | ||||||||||||||
| April 30, | |||||||||||
| Lease term and discount rate | 2026 | 2025 | |||||||||
| Weighted-average remaining lease term (years) | |||||||||||
Operating leases | 15 | 15 | |||||||||
Finance leases | 21 | 21 | |||||||||
| Weighted-average discount rate | |||||||||||
Operating leases | 5.29 | % | 5.21 | % | |||||||
Finance leases | 4.48 | % | 4.12 | % | |||||||
| Year Ended April 30, | |||||||||||||||||
| (In millions) | 2026 | 2025 | 2024 | ||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows from operating leases | $ | 287 | $ | 268 | $ | 243 | |||||||||||
Operating cash flows from finance leases | 7 | 9 | 7 | ||||||||||||||
Financing cash flows from finance leases | 18 | 18 | 12 | ||||||||||||||
Lease assets obtained in exchange for new operating lease liabilities | 268 | 227 | 385 | ||||||||||||||
Lease assets obtained in exchange for new finance lease liabilities | 10 | 17 | 22 | ||||||||||||||
Maturity of lease liabilities as of April 30, 2026 (in millions) | Operating leases | Finance leases | |||||||||
2027 | $ | 298 | $ | 20 | |||||||
2028 | 294 | 19 | |||||||||
2029 | 290 | 15 | |||||||||
2030 | 287 | 10 | |||||||||
2031 | 277 | 9 | |||||||||
Thereafter | 2,867 | 191 | |||||||||
| Total | 4,313 | 264 | |||||||||
| Less amount representing interest | (1,449) | (93) | |||||||||
| Present value of lease liabilities | 2,864 | 171 | |||||||||
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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.