We have operating and finance leases primarily for office space, equipment, and vehicles. The terms and conditions for these leases vary by the type of underlying asset.

Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred.

The components of lease cost were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Finance lease cost:
Amortization of right-of-use assets	$	846	$	515	$	4,286	$	971
Interest on lease liabilities		345		167		1,742		286
Operating lease cost		289		227		823		839
Variable lease cost		160		173		458		515
Short-term lease cost		5,893		3,740		18,255		7,130
Total lease cost	$	7,533	$	4,822	$	25,564	$	9,741

Supplemental cash flow and other information related to leases were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	443	$	290	$	1,018	$	1,016
Operating cash outflows from finance leases	$	345	$	167	$	1,742	$	286
Financing cash outflows from finance leases	$	232	$	310	$	1,932	$	703
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	—	$	—	$	559	$	5,384
Finance leases	$	4,187	$	7,262	$	25,063	$	11,213

During the nine months ended September 30, 2022, we modified an agreement related to certain operating right-of-use assets of $1.3 million and liabilities of $1.3 million; the change in terms increased the amount, extended the term, and resulted in finance lease classification. In connection with this modification, we recognized finance lease right-of-use assets of $3.2 million and liabilities of $3.2 million. There was no gain or loss recognized as a result of these amendments.

Lease terms and discount rates as of September 30, 2023 and December 31, 2022 are as follows:



	September 30, 2023			December 31, 2022
Weighted-average remaining lease term:
Operating leases	3.9 years			4.5 years
Finance leases	3.6 years			5.3 years
Weighted-average discount rate:
Operating leases		4.6	%		4.3	%
Finance leases		5.0	%		9.4	%

Future minimum lease commitments as of September 30, 2023 are as follows (in thousands):


	Finance		Operating
Remainder of 2023	$	74	$	293
2024		176		1,443
2025		90		1,474
2026		90		1,414
2027		90		815
Thereafter		22		11
Total lease payments		542		5,450
Less imputed interest		52		465
Total	$	490	$	4,985

Supplemental balance sheet information related to our leases as of September 30, 2023 and December 31, 2022 was as follows (in thousands):



	Classification	September 30, 2023		December 31, 2022
Operating Leases
Current operating lease liabilities	Other current liabilities	$	1,227	$	1,082
Noncurrent operating lease liabilities	Other long-term liabilities	$	3,758	$	4,287
Finance Leases
Current finance lease liabilities	Other current liabilities	$	208	$	3,213
Noncurrent finance lease liabilities	Other long-term liabilities	$	282	$	16,942

On July 31, 2023, Atlas LLC entered into a credit agreement (the “2023 Term Loan Credit Agreement”) with Stonebriar, as administrative agent and initial lender, pursuant to which Stonebriar extended Atlas LLC a term loan credit facility comprising a $180.0 million single advance term loan that was made on July 31, 2023 (the “Initial Term Loan”) and commitments to provide up to $100.0 million of delayed draw term loans (collectively, the “2023 Term Loan Credit Facility”). Proceeds from the 2023 Term Loan Credit Facility were used to repay $133.4 million of 2021 Term Loan Credit Facility principal and accrued interest, terminate $42.8 million of finance lease liabilities, as well as acquire $39.5 million of finance lease assets associated with certain equipment lease arrangements with Stonebriar. There was no gain or loss recognized as a result of this transaction. See Note 6 - Debt for further discussion on the 2023 Term Loan Credit Facility.

On May 16, 2022, Atlas LLC entered into a master lease agreement with Stonebriar for the right, but not the obligation, to fund up to $70.0 million of purchases of transportation and logistics equipment. The interim financing for down payments on any purchased equipment is based on one-month SOFR, plus 8.0%. The final interest rate is set upon acceptance of the equipment based on the terms of the agreement. On July 31, 2023, in connection with entering into 2023 Term Loan Credit Agreement, all obligations under this master lease agreement were terminated, all associated assets were acquired and this master lease agreement was terminated. There was no gain or loss recognized as a result of this transaction.

On July 28, 2022, Atlas LLC entered into a master lease agreement with Stonebriar for the right, but not the obligation, to fund up to $10.0 million of purchases of dredges and related equipment. The interim financing for down payments on any purchased equipment is based on one-month SOFR, plus 8.0%. The final interest rate is set upon acceptance of the equipment based on the terms of the agreement. On July 31, 2023, in connection with entering into the 2023 Term Loan Credit Agreement, all obligations under this master lease agreement were terminated, all associated assets were acquired and this master lease agreement was terminated. There was no gain or loss recognized as a result of this transaction.

As of September 30, 2023, we had no additional leases that have not yet commenced. Certain transportation and logistics leases discussed here are a component of the purchase commitments discussed in Note 7 - Commitments and Contingencies.