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Leases (Tables)

6 Months Ended

Jun. 30, 2019

The components of lease costs in the accompanying condensed consolidated statement of operations are as follows (in thousands):



		Three Months Ended		Six Months Ended
		June 30, 2019		June 30, 2019
Lease cost	Classification
Finance lease cost:
Amortization of lease assets	Depreciation ⁽¹⁾	$	283	$	656
Interest on lease liabilities	Interest expense	18		39
Operating lease cost	Costs of services and Selling, general and administrative expenses	30,377		60,735
Short-term lease cost ⁽²⁾	Costs of services and Selling, general and administrative expenses	188,360		383,525
Variable lease cost ⁽³⁾	Costs of services and Selling, general and administrative expenses	6,270		11,403
Total lease cost		$	225,308	$	456,358


⁽¹⁾	Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of operations.


⁽²⁾	Short-term lease cost includes both leases and rentals with initial terms of one year or less.

⁽³⁾

Variable lease cost primarily relates to real estate leases and consists of common area maintenance charges, real estate taxes, insurance and other variable costs.

Components of Leases in the Balance Sheet

The components of leases in the accompanying condensed consolidated balance sheet were as follows (in thousands):



		June 30, 2019
Lease type	Classification
Assets:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	284,962
Finance lease assets	Property and equipment, net of accumulated depreciation	2,109
Total lease assets		$	287,071
Liabilities:
Current:
Operating	Current portion of operating lease liabilities	$	92,765
Finance	Current maturities of long-term debt and short-term debt	1,491

Non-current:
Operating	Operating lease liabilities, net of current portion	192,197
Finance	Long-term debt, net of current maturities	683
Total lease liabilities		$	287,136

Future Minimum Lease Payments - Operating Leases

Future minimum lease payments for operating and finance leases were as follows (in thousands):



	As of June 30, 2019
	Operating Leases			Finance Leases			Total
Remainder of 2019	$	54,850		$	1,012		$	55,862
2020	89,084			707			89,791
2021	62,724			342			63,066
2022	40,366			117			40,483
2023	25,394			48			25,442
Thereafter	40,329			25			40,354
Total future minimum lease payments	$	312,747		$	2,251		$	314,998
Less imputed interest	(27,785		)	(77		)	(27,862		)
Total lease liabilities	$	284,962		$	2,174		$	287,136

Future Minimum Lease Payments - Finance Leases

Future minimum lease payments for operating and finance leases were as follows (in thousands):



	As of June 30, 2019
	Operating Leases			Finance Leases			Total
Remainder of 2019	$	54,850		$	1,012		$	55,862
2020	89,084			707			89,791
2021	62,724			342			63,066
2022	40,366			117			40,483
2023	25,394			48			25,442
Thereafter	40,329			25			40,354
Total future minimum lease payments	$	312,747		$	2,251		$	314,998
Less imputed interest	(27,785		)	(77		)	(27,862		)
Total lease liabilities	$	284,962		$	2,174		$	287,136

Future Minimum Payments under Operating Leases

Future minimum lease payments for operating leases under the prior standard and Quanta’s historical accounting policy were as follows (in thousands):



	As of December 31, 2018
	Operating Leases
2019	$	124,530
2020	81,189
2021	55,827
2022	34,337
2023	21,450
Thereafter	37,217
Total minimum lease payments	$	354,550

Other Information Related to Leases

The weighted average remaining lease terms and discount rates were as follows:



	As of June 30, 2019
Weighted average remaining lease term (in years):
Operating leases	4.32
Finance leases	2.16
Weighted average discount rate:
Operating leases	4.3	%
Finance leases	4.2	%