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,
	2024		2023		2024		2023
Finance lease cost:
Amortization of right-of-use assets	$	833	$	846	$	2,019	$	4,286
Interest on lease liabilities		92		345		231		1,742
Operating lease cost		1,959		289		4,697		823
Variable lease cost		123		160		439		458
Short-term lease cost		31,513		5,893		58,122		18,255
Total lease cost	$	34,520	$	7,533	$	65,508	$	25,564

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	2,158	$	443	$	4,555	$	1,018
Operating cash outflows from finance leases	$	123	$	345	$	231	$	1,742
Financing cash outflows from finance leases	$	1,659	$	232	$	1,773	$	1,932
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	—	$	—	$	14,448	$	559
Finance leases	$	—	$	4,187	$	7,666	$	25,063

Lease terms and discount rates as of September 30, 2024 and December 31, 2023 are as follows:


	September 30, 2024			December 31, 2023
Weighted-average remaining lease term:
Operating leases	4.3 years			3.6 years
Finance leases	2.2 years			3.6 years
Weighted-average discount rate:
Operating leases		5.7	%		4.7	%
Finance leases		5.6	%		5.2	%

Future minimum lease commitments as of September 30, 2024 are as follows (in thousands):


	Finance		Operating
Remainder of 2024	$	930	$	1,268
2025		3,076		6,362
2026		2,085		538
2027		418		1,537
2028		50		1,460
Thereafter		—		5,553
Total lease payments		6,559		16,718
Less imputed interest		369		2,486
Total	$	6,190	$	14,232

On the condensed consolidated balance sheets, the December 31, 2023 current portion of operating lease liabilities and current portion of finance lease liabilities were reclassified out of other current liabilities to the current portion of operating lease liabilities and current portion of finance lease liabilities, respectively, for comparable presentation with the current period. In addition, the December 31, 2023 operating lease liabilities and finance lease liabilities were reclassified out of other long-term liabilities to operating lease liabilities and finance lease liabilities, respectively, on the condensed consolidated balance sheets for comparable presentation with the current period.

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 the principal and accrued interest of the credit facility extended pursuant to the Credit Agreement, dated October 20, 2021, between Atlas LLC, as borrower, and Stonebriar, as lender, as amended (collectively, the “2021 Term Loan Credit Facility”). Proceeds from the 2023 Term Loan Credit Facility were also used to terminate $42.8 million of finance lease liabilities and 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 8 - 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 Secured Overnight Financing Rate (“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, 2024, 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 9 - Commitments and Contingencies.