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Leases
 6 Months Ended
Jun. 30, 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 EndedSix Months Ended
 June 30,June 30,
Lease costClassification2023202220232022
Finance lease cost:
Amortization of lease assets
Depreciation (1)
$1,102 $436 $2,013 $876 
Interest on lease liabilitiesInterest and other financing expenses299 28 507 55 
Operating lease costCost of services and Selling, general and administrative expenses23,140 24,248 46,363 49,125 
Short-term and variable lease cost (2)
Cost of services and Selling, general and administrative expenses249,868 224,088 487,946 443,387 
Total lease cost $274,409 $248,800 $536,829 $493,443 
(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 $3.8 million for the three months ended June 30, 2023 and 2022 and $7.8 million and $7.4 million for the six months ended June 30, 2023 and 2022.
Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands):
 As of June 30, 2023
 Operating LeasesFinance LeasesLease Financing TransactionsTotal
Remainder of 2023$45,285 $1,488 $8,361 $55,134 
202475,927 6,504 15,573 98,004 
202559,264 6,477 13,831 79,572 
202643,129 6,219 14,369 63,717 
202727,812 5,691 11,756 45,259 
Thereafter29,696 3,452 25,161 58,309 
Total future minimum payments related to operating leases, finance leases and lease financing transactions281,113 29,831 89,051 399,995 
Less imputed interest(22,760)(1,464)— (24,224)
Total operating lease, finance lease and lease financing transaction liabilities $258,353 $28,367 $89,051 $375,771 
Future minimum lease payments for short-term leases were $19.6 million as of June 30, 2023.
The weighted average remaining lease terms and discount rates were as follows:
 As of June 30, 2023
Weighted average remaining lease term (in years):
Operating leases4.26
Finance leases5.60
Weighted average discount rate:
Operating leases3.9 %
Finance leases6.1 %
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. Historically, the fair value of the assets at the time of lease termination generally has approximated or exceeded 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 EndedSix Months Ended
 June 30,June 30,
Lease costClassification2023202220232022
Finance lease cost:
Amortization of lease assets
Depreciation (1)
$1,102 $436 $2,013 $876 
Interest on lease liabilitiesInterest and other financing expenses299 28 507 55 
Operating lease costCost of services and Selling, general and administrative expenses23,140 24,248 46,363 49,125 
Short-term and variable lease cost (2)
Cost of services and Selling, general and administrative expenses249,868 224,088 487,946 443,387 
Total lease cost $274,409 $248,800 $536,829 $493,443 
(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 $3.8 million for the three months ended June 30, 2023 and 2022 and $7.8 million and $7.4 million for the six months ended June 30, 2023 and 2022.
Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands):
 As of June 30, 2023
 Operating LeasesFinance LeasesLease Financing TransactionsTotal
Remainder of 2023$45,285 $1,488 $8,361 $55,134 
202475,927 6,504 15,573 98,004 
202559,264 6,477 13,831 79,572 
202643,129 6,219 14,369 63,717 
202727,812 5,691 11,756 45,259 
Thereafter29,696 3,452 25,161 58,309 
Total future minimum payments related to operating leases, finance leases and lease financing transactions281,113 29,831 89,051 399,995 
Less imputed interest(22,760)(1,464)— (24,224)
Total operating lease, finance lease and lease financing transaction liabilities $258,353 $28,367 $89,051 $375,771 
Future minimum lease payments for short-term leases were $19.6 million as of June 30, 2023.
The weighted average remaining lease terms and discount rates were as follows:
 As of June 30, 2023
Weighted average remaining lease term (in years):
Operating leases4.26
Finance leases5.60
Weighted average discount rate:
Operating leases3.9 %
Finance leases6.1 %
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. Historically, the fair value of the assets at the time of lease termination generally has approximated or exceeded the residual value guarantees, and therefore such guarantees are not expected to result in significant payments.