Leases (Tables)

12 Months Ended

Dec. 31, 2024

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


		Year Ended December 31,
Lease and lease financing cost	Classification	2024		2023		2022
Finance lease cost:
Amortization of lease assets	Depreciation (1)	$	11,462	$	4,944	$	1,540
Interest on lease liabilities	Interest and other financing expenses	2,798		1,463		108
Lease financing transactions:(2)
Depreciation	Depreciation (1)	10,396		7,698		5,303
Interest	Interest and other financing expenses	17,600		12,992		8,405
Operating lease cost	Cost of services and Selling, general and administrative expenses	108,879		93,133		93,539
Short-term and variable lease cost (3)	Cost of services and Selling, general and administrative expenses	1,245,011		1,106,454		953,721
Total lease and lease financing cost		$	1,396,146	$	1,226,684	$	1,062,616

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

Components of Leases in the Balance Sheet

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


		December 31,
Lease type	Classification	2024		2023
Assets:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	299,895	$	249,443
Finance lease assets	Property and equipment, net of accumulated depreciation	43,018		35,770
Lease financing transaction assets	Property and equipment, net of accumulated depreciation	155,548		102,955
Total lease and lease financing assets		$	498,461	$	388,168
Liabilities:
Current:
Operating	Current portion of operating lease liabilities	$	94,162	$	77,995
Finance	Current maturities of long-term debt and short-term debt	11,641		7,767
Lease financing transaction liabilities	Current maturities of long-term debt and short-term debt	11,307		7,345

Non-current:
Operating	Operating lease liabilities, net of current portion	222,359		186,996
Finance	Long-term debt, net of current maturities	36,352		31,810
Lease financing transaction liabilities	Long-term debt, net of current maturities	144,242		95,610
Total lease and lease financing liabilities		$	520,063	$	407,523

Future Minimum Lease Payments - Operating Leases

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


	As of December 31, 2024
	Operating Leases		Finance Leases		Total
2025	$	107,468	$	13,225	$	120,693
2026	86,518		12,244		98,762
2027	62,115		10,847		72,962
2028	40,801		8,707		49,508
2029	18,475		7,291		25,766
Thereafter	39,456		2,737		42,193
Total future minimum payments related to operating leases and finance leases	354,833		55,051		409,884
Less imputed interest	(38,312)		(7,058)		(45,370)
Total	$	316,521	$	47,993	$	364,514

Future Minimum Lease Payments - Finance Leases and Equipment Lease Financing Transactions

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


	As of December 31, 2024
	Operating Leases		Finance Leases		Total
2025	$	107,468	$	13,225	$	120,693
2026	86,518		12,244		98,762
2027	62,115		10,847		72,962
2028	40,801		8,707		49,508
2029	18,475		7,291		25,766
Thereafter	39,456		2,737		42,193
Total future minimum payments related to operating leases and finance leases	354,833		55,051		409,884
Less imputed interest	(38,312)		(7,058)		(45,370)
Total	$	316,521	$	47,993	$	364,514

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 December 31,
	2024		2023
Weighted average remaining lease term (in years):
Operating leases	4.48		4.34
Finance leases	4.35		5.69
Weighted average discount rate:
Operating leases	5.1	%	4.3	%
Finance leases	6.1	%	6.3	%