Quanta Services, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

Leases (Tables)

3 Months Ended

Mar. 31, 2019

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



		Three Months Ended
		March 31, 2019
Lease cost	Classification
Finance lease cost:
Amortization of lease assets	Depreciation ⁽¹⁾	$	373
Interest on lease liabilities	Interest expense	21
Operating lease cost	Costs of services and Selling, general and administrative expenses	30,358
Short-term lease cost ⁽²⁾	Costs of services and Selling, general and administrative expenses	195,165
Variable lease cost ⁽³⁾	Costs of services and Selling, general and administrative expenses	5,133
Total lease cost		$	231,050


⁽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):



		March 31, 2019
Lease type	Classification
Assets:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	285,768
Finance lease assets	Property and equipment, net of accumulated depreciation	2,313
Total lease assets		$	288,081
Liabilities:
Current:
Operating	Current portion of operating lease liabilities	$	92,293
Finance	Current maturities of long-term debt and short-term debt	1,168

Non-current:
Operating	Operating lease liabilities, net of current portion	193,475
Finance	Long-term debt, net of current maturities	578
Total lease liabilities		$	287,514

Future Minimum Lease Payments - Operating Leases

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



	As of March 31, 2019
	Operating Leases			Finance Leases			Total
Remainder of 2019	$	79,484		$	1,130		$	80,614
2020	82,627			291			82,918
2021	56,831			267			57,098
2022	35,537			97			35,634
2023	22,310			33			22,343
Thereafter	37,152			2			37,154
Total future minimum lease payments	$	313,941		$	1,820		$	315,761
Less imputed interest	(28,173		)	(74		)	(28,247		)
Total lease liabilities	$	285,768		$	1,746		$	287,514

Future Minimum Lease Payments - Finance Leases

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



	As of March 31, 2019
	Operating Leases			Finance Leases			Total
Remainder of 2019	$	79,484		$	1,130		$	80,614
2020	82,627			291			82,918
2021	56,831			267			57,098
2022	35,537			97			35,634
2023	22,310			33			22,343
Thereafter	37,152			2			37,154
Total future minimum lease payments	$	313,941		$	1,820		$	315,761
Less imputed interest	(28,173		)	(74		)	(28,247		)
Total lease liabilities	$	285,768		$	1,746		$	287,514

Future Minimum Payments under Operating Leases

Future minimum lease payments for operating leases under the prior standard 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 March 31, 2019
Weighted average remaining lease term (in years):
Operating leases	4.35
Finance leases	1.77
Weighted average discount rate:
Operating leases	4.3	%
Finance leases	4.1	%