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Leases
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
Leases
9. LEASES:
Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. The components of lease costs in the accompanying condensed consolidated statements of operations are as follows (in thousands):
Three Months Ended
 March 31,
Lease costClassification20232022
Finance lease cost:
Amortization of lease assets
Depreciation (1)
$911 $440 
Interest on lease liabilitiesInterest and other financing expenses208 27 
Operating lease costCost of services and Selling, general and administrative expenses23,223 24,877 
Short-term and variable lease cost (2)
Cost of services and Selling, general and administrative expenses238,078 219,299 
Total lease cost $262,420 $244,643 
(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. Variable lease cost is insignificant.
Related party lease expense was $3.9 million and $3.6 million for the three months ended March 31, 2023 and 2022.
Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands):
 As of March 31, 2023
 Operating LeasesFinance LeasesLease Financing TransactionsTotal
Remainder of 2023$65,507 $1,159 $12,870 $79,536 
202470,456 3,950 14,345 88,751 
202553,957 3,845 12,577 70,379 
202639,185 3,628 13,111 55,924 
202724,428 3,229 10,491 38,148 
Thereafter27,814 852 20,190 48,856 
Total future minimum payments related to operating leases, finance leases and lease financing transactions281,347 16,663 83,584 381,594 
Less imputed interest(23,421)(86)— (23,507)
Total operating lease, finance lease and lease financing transaction liabilities $257,926 $16,577 $83,584 $358,087 
Future minimum lease payments for short-term leases were $21.4 million as of March 31, 2023.
The weighted average remaining lease terms and discount rates were as follows:
 As of March 31, 2023
Weighted average remaining lease term (in years):
Operating leases4.32
Finance leases5.23
Weighted average discount rate:
Operating leases3.8 %
Finance leases5.0 %
Quanta has also guaranteed the residual value under certain of its equipment operating leases and real estate finance leases, agreeing to pay any difference between the residual value and the fair market value of the underlying asset at the date of
lease termination. The fair value of the assets at the time of lease termination generally approximates or exceeds the residual value guarantees, and therefore such guarantees are not expected to result in significant payments.
Leases
9. LEASES:
Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. The components of lease costs in the accompanying condensed consolidated statements of operations are as follows (in thousands):
Three Months Ended
 March 31,
Lease costClassification20232022
Finance lease cost:
Amortization of lease assets
Depreciation (1)
$911 $440 
Interest on lease liabilitiesInterest and other financing expenses208 27 
Operating lease costCost of services and Selling, general and administrative expenses23,223 24,877 
Short-term and variable lease cost (2)
Cost of services and Selling, general and administrative expenses238,078 219,299 
Total lease cost $262,420 $244,643 
(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. Variable lease cost is insignificant.
Related party lease expense was $3.9 million and $3.6 million for the three months ended March 31, 2023 and 2022.
Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands):
 As of March 31, 2023
 Operating LeasesFinance LeasesLease Financing TransactionsTotal
Remainder of 2023$65,507 $1,159 $12,870 $79,536 
202470,456 3,950 14,345 88,751 
202553,957 3,845 12,577 70,379 
202639,185 3,628 13,111 55,924 
202724,428 3,229 10,491 38,148 
Thereafter27,814 852 20,190 48,856 
Total future minimum payments related to operating leases, finance leases and lease financing transactions281,347 16,663 83,584 381,594 
Less imputed interest(23,421)(86)— (23,507)
Total operating lease, finance lease and lease financing transaction liabilities $257,926 $16,577 $83,584 $358,087 
Future minimum lease payments for short-term leases were $21.4 million as of March 31, 2023.
The weighted average remaining lease terms and discount rates were as follows:
 As of March 31, 2023
Weighted average remaining lease term (in years):
Operating leases4.32
Finance leases5.23
Weighted average discount rate:
Operating leases3.8 %
Finance leases5.0 %
Quanta has also guaranteed the residual value under certain of its equipment operating leases and real estate finance leases, agreeing to pay any difference between the residual value and the fair market value of the underlying asset at the date of
lease termination. The fair value of the assets at the time of lease termination generally approximates or exceeds the residual value guarantees, and therefore such guarantees are not expected to result in significant payments.