Leases (Tables)

6 Months Ended

Jun. 30, 2024

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


		Three Months Ended				Six Months Ended
		June 30,				June 30,
Lease cost	Classification	2024		2023		2024		2023
Finance lease cost:
Amortization of lease assets	Depreciation (1)	$	2,825	$	1,102	$	5,794	$	2,013
Interest on lease liabilities	Interest and other financing expenses	688		299		1,410		507
Lease financing transactions: (2)
Depreciation	Depreciation (1)	2,503		1,633		4,595		3,885
Interest	Interest and other financing expenses	4,294		2,559		7,792		6,858
Operating lease cost	Cost of services and Selling, general and administrative expenses	26,036		23,140		51,570		46,363
Short-term and variable lease cost (3)	Cost of services and Selling, general and administrative expenses	284,766		249,868		572,101		487,946
Total lease cost		$	321,112	$	278,601	$	643,262	$	547,572

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

(2) Certain of Quanta’s equipment rental agreements contain purchase options pursuant to which the purchase price is offset by a portion of the rental payments. When these purchase options are exercised by a third-party lessor on behalf of Quanta, the transaction is deemed to be a financing transaction for accounting purposes, which results in the recognition of an asset equal to the purchase price and a corresponding liability.

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

Future Minimum Lease Payments - Operating Leases

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


	As of June 30, 2024
	Operating Leases		Finance Leases		Total
Remainder of 2024	$	50,328	$	4,862	$	55,190
2025	87,853		9,238		97,091
2026	68,936		8,761		77,697
2027	50,038		7,715		57,753
2028	31,754		7,113		38,867
Thereafter	39,509		5,845		45,354
Total future minimum payments related to operating leases and finance leases	328,418		43,534		371,952
Less imputed interest	(33,491)		(3,391)		(36,882)
Total	$	294,927	$	40,143	$	335,070

Future Minimum Lease Payments - Finance Leases

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


	As of June 30, 2024
	Operating Leases		Finance Leases		Total
Remainder of 2024	$	50,328	$	4,862	$	55,190
2025	87,853		9,238		97,091
2026	68,936		8,761		77,697
2027	50,038		7,715		57,753
2028	31,754		7,113		38,867
Thereafter	39,509		5,845		45,354
Total future minimum payments related to operating leases and finance leases	328,418		43,534		371,952
Less imputed interest	(33,491)		(3,391)		(36,882)
Total	$	294,927	$	40,143	$	335,070

Other Information Related to Leases

The weighted average remaining lease terms (other than for short-term leases) and discount rates were as follows:


	As of June 30, 2024
Weighted average remaining lease term (in years):
Operating leases	4.42
Finance leases	5.06
Weighted average discount rate:
Operating leases	4.7	%
Finance leases	6.4	%