Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 21, 2019 | Jun. 29, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PWR | ||
Entity Registrant Name | QUANTA SERVICES INC | ||
Entity Central Index Key | 1,050,915 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.9 | ||
Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock Shares, Outstanding | 141,356,413 | ||
Exchangeable Shares | |||
Document Information [Line Items] | |||
Entity Common Stock Shares, Outstanding | 36,183 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 78,687 | $ 138,285 |
Accounts receivable, net of allowances of $5,839 and $4,465 | 2,354,737 | 1,985,077 |
Contract assets | 576,891 | 497,292 |
Inventories | 107,732 | 80,890 |
Prepaid expenses and other current assets | 208,057 | 168,363 |
Total current assets | 3,326,104 | 2,869,907 |
Property and equipment, net of accumulated depreciation of $1,092,440 and $981,275 | 1,276,032 | 1,288,602 |
Other assets, net | 293,592 | 189,866 |
Other intangible assets, net of accumulated amortization of $372,081 and $335,507 | 280,180 | 263,179 |
Goodwill | 1,899,879 | 1,868,600 |
Total assets | 7,075,787 | 6,480,154 |
Current Liabilities: | ||
Current maturities of long-term debt and short-term debt | 65,646 | 1,220 |
Accounts payable and accrued expenses | 1,314,520 | 1,057,460 |
Contract liabilities | 425,961 | 433,387 |
Total current liabilities | 1,806,127 | 1,492,067 |
Long-term debt and notes payable, net of current maturities | 1,040,532 | 670,721 |
Deferred income taxes | 219,115 | 179,381 |
Insurance and other non-current liabilities | 404,560 | 342,356 |
Total liabilities | 3,470,334 | 2,684,525 |
Commitments and Contingencies | ||
Equity: | ||
Additional paid-in capital | 1,967,354 | 1,889,356 |
Retained earnings | 2,477,291 | 2,191,059 |
Accumulated other comprehensive loss | (286,048) | (203,395) |
Treasury stock, 16,229,146 and 1,876,828 common shares | (554,440) | (85,451) |
Total stockholders’ equity | 3,604,159 | 3,791,571 |
Non-controlling interests | 1,294 | 4,058 |
Total equity | 3,605,453 | 3,795,629 |
Total liabilities and equity | 7,075,787 | 6,480,154 |
Common Stock | ||
Equity: | ||
Common stock, value | 2 | 2 |
Exchangeable Shares | ||
Equity: | ||
Common stock, value | 0 | 0 |
Series G Preferred Stock | ||
Equity: | ||
Preferred stock, value | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Allowances on accounts receivable, current | $ 5,839 | $ 4,465 |
Accumulated depreciation on property and equipment | 1,092,440 | 981,275 |
Accumulated amortization on other intangible assets | $ 372,081 | $ 335,507 |
Treasury stock, common shares (in shares) | 16,229,146 | 1,876,828 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 157,333,046 | 155,219,154 |
Common stock, shares outstanding (in shares) | 141,103,900 | 153,342,326 |
Exchangeable Shares | ||
Common stock, shares issued (in shares) | 486,112 | 486,112 |
Common stock, shares outstanding (in shares) | 486,112 | 486,112 |
Exchangeable shares, par value (in dollars per share) | ||
Series G Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 1 | 1 |
Preferred stock, shares issued (in shares) | 1 | 1 |
Preferred stock, shares outstanding (in shares) | 1 | 1 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 11,171,423 | $ 9,466,478 | $ 7,651,319 |
Cost of services (including depreciation) | 9,691,459 | 8,224,618 | 6,637,519 |
Gross profit | 1,479,964 | 1,241,860 | 1,013,800 |
Selling, general and administrative expenses | 857,574 | 777,920 | 653,338 |
Amortization of intangible assets | 43,994 | 32,205 | 31,685 |
Asset impairment charges | 49,375 | 58,057 | 7,964 |
Change in fair value of contingent consideration liabilities | (11,248) | (5,171) | 0 |
Operating income | 540,269 | 378,849 | 320,813 |
Interest expense | (36,945) | (20,946) | (14,887) |
Interest income | 1,555 | 832 | 2,423 |
Other expense, net | (47,213) | (4,978) | (663) |
Income from continuing operations before income taxes | 457,666 | 353,757 | 307,686 |
Provision for income taxes | 161,659 | 35,532 | 107,246 |
Net income from continuing operations | 296,007 | 318,225 | 200,440 |
Net loss from discontinued operations | 0 | 0 | (342) |
Net income | 296,007 | 318,225 | 200,098 |
Less: Net income attributable to non-controlling interests | 2,661 | 3,247 | 1,715 |
Net income attributable to common stock | 293,346 | 314,978 | 198,383 |
Amounts attributable to common stock: | |||
Net income from continuing operations | 293,346 | 314,978 | 198,725 |
Net loss from discontinued operations | 0 | 0 | (342) |
Net income attributable to common stock | $ 293,346 | $ 314,978 | $ 198,383 |
Basic earnings per share attributable to common stock: | |||
Continuing operations (in dollars per share) | $ 1.92 | $ 2.02 | $ 1.26 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 |
Net income attributable to common stock (in dollars per share) | $ 1.92 | $ 2.02 | $ 1.26 |
Weighted average basic shares outstanding (in shares) | 152,963 | 156,124 | 157,287 |
Diluted earnings per share attributable to common stock: | |||
Continuing operations (in dollars per share) | $ 1.90 | $ 2 | $ 1.26 |
Discontinued operations (in usd per share) | 0 | 0 | 0 |
Net income attributable to common stock (in usd per share) | $ 1.90 | $ 2 | $ 1.26 |
Weighted average diluted shares outstanding (in shares) | 154,226 | 157,155 | 157,288 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 296,007 | $ 318,225 | $ 200,098 |
Other comprehensive income (loss), net of tax provision: | |||
Foreign currency translation adjustment, net of tax of $0, $0 and $0 | (84,484) | 67,404 | 23,137 |
Other, net of tax of $(677), $(347) and $46 | 1,831 | 874 | (121) |
Other comprehensive income (loss) | (82,653) | 68,278 | 23,016 |
Comprehensive income | 213,354 | 386,503 | 223,114 |
Less: Comprehensive income attributable to non-controlling interests | 2,661 | 3,247 | 1,715 |
Total comprehensive income attributable to Quanta stockholders | $ 210,693 | $ 383,256 | $ 221,399 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 |
Other comprehensive income (loss) other, tax | $ (677) | $ (347) | $ 46 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities of Continuing Operations: | |||
Net income | $ 296,007 | $ 318,225 | $ 200,098 |
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations — | |||
Net loss from discontinued operations | 0 | 0 | 342 |
Depreciation | 202,519 | 183,808 | 170,240 |
Amortization of intangible assets | 43,994 | 32,205 | 31,685 |
Asset impairment charges | 49,375 | 58,057 | 7,964 |
Change in fair value of contingent consideration liabilities | (11,248) | (5,171) | 0 |
Equity in losses of unconsolidated affiliates | 52,867 | 10,945 | 979 |
Amortization of debt issuance costs | 1,270 | 1,321 | 1,356 |
(Gain) loss on sale of property and equipment | 3,296 | (549) | (734) |
Foreign currency (gain) loss | (385) | 409 | 880 |
Provision for (recovery of) doubtful accounts | 7,169 | 87 | (543) |
Deferred income tax expense (benefit) | 61,974 | (32,130) | (15,695) |
Non-cash stock-based compensation | 52,484 | 46,448 | 42,843 |
Changes in operating assets and liabilities, net of non-cash transactions | (400,533) | (241,764) | (48,666) |
Net cash provided by operating activities of continuing operations | 358,789 | 371,891 | 390,749 |
Cash Flows from Investing Activities of Continuing Operations: | |||
Capital expenditures | (293,595) | (244,651) | (212,555) |
Proceeds from sale of property and equipment | 31,780 | 23,348 | 21,975 |
Proceeds from insurance settlements related to property and equipment | 714 | 1,175 | 546 |
Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired | (94,917) | (361,217) | (68,788) |
Investments in unconsolidated affiliates and other entities | (36,909) | (56,528) | (13,150) |
Cash received from investments in unconsolidated affiliates and other entities | 4,705 | 65,789 | 7,593 |
Cash paid for intangible assets | (14,448) | 0 | 0 |
Net cash used in investing activities of continuing operations | (402,670) | (572,084) | (264,379) |
Cash Flows from Financing Activities of Continuing Operations: | |||
Borrowings under credit facility | 4,491,782 | 2,932,338 | 2,744,453 |
Payments under credit facility | (4,076,460) | (2,624,404) | (2,860,673) |
Payments on other long-term debt | (1,298) | (5,361) | (6,959) |
Net borrowings (repayments) of short-term debt | 33,790 | (2,783) | (1,957) |
Debt issuance and amendment costs | (1,976) | (1,507) | 0 |
Distributions to non-controlling interests, net of contributions received | (4,038) | (2,001) | (761) |
Payments related to tax withholding for share-based compensation | (15,218) | (18,543) | (8,340) |
Exercise of stock options | 0 | 25 | 401 |
Repurchase of common stock | (443,152) | (50,000) | 0 |
Net cash provided by (used in) financing activities of continuing operations | (16,570) | 227,764 | (133,836) |
Discontinued operations: | |||
Net cash used in operating activities | 0 | 0 | (1,035) |
Net cash used in investing activities | 0 | 0 | (6,080) |
Net cash used in discontinued operations | 0 | 0 | (7,115) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (68) | 1,794 | 220 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (60,519) | 29,365 | (14,361) |
Cash, cash equivalents and restricted cash, beginning of year | 143,775 | 114,410 | 128,771 |
Cash, cash equivalents and restricted cash, end of year | $ 83,256 | $ 143,775 | $ 114,410 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common StockCommon Stock | Common StockExchangeable Shares | Preferred StockSeries F | Preferred StockSeries G | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Stockholders' Equity | Non-controlling Interests |
Balance (in shares) at Dec. 31, 2015 | 152,907,166 | 6,876,042 | 1 | 1 | |||||||
Balance at Dec. 31, 2015 | $ 3,087,815 | $ 2 | $ 0 | $ 0 | $ 0 | $ 3,497,740 | $ 1,677,698 | $ (294,689) | $ (1,795,257) | $ 3,085,494 | $ 2,321 |
Other comprehensive income (loss) | 23,016 | 23,016 | 23,016 | ||||||||
Acquisitions (in shares) | 70,840 | ||||||||||
Acquisitions | 1,508 | 1,508 | 1,508 | ||||||||
Restricted stock and restricted stock unit activity (in shares) | 760,395 | ||||||||||
Restricted stock and restricted stock unit activity | 34,505 | 49,665 | (15,160) | 34,505 | |||||||
Stock options exercised (in shares) | 25,423 | ||||||||||
Stock options exercised | 425 | 425 | 425 | ||||||||
Exchange of exchangeable shares (in shares) | 360,589 | (360,589) | |||||||||
Income tax impact from long-term incentive plans | (3,904) | (3,904) | (3,904) | ||||||||
Settlement of accelerated stock repurchase / Common stock repurchases (in shares) | (9,413,640) | ||||||||||
Settlement of accelerated stock repurchase / Common stock repurchases | 150,000 | (150,000) | |||||||||
Retirement of treasury stock | $ (1) | (1,946,128) | 1,946,129 | ||||||||
Distributions to non-controlling interests | (761) | (761) | |||||||||
Net income | 200,098 | 198,383 | 198,383 | 1,715 | |||||||
Balance (in shares) at Dec. 31, 2016 | 144,710,773 | 6,515,453 | 1 | 1 | |||||||
Balance at Dec. 31, 2016 | 3,342,702 | $ 1 | $ 0 | $ 0 | $ 0 | 1,749,306 | 1,876,081 | (271,673) | (14,288) | 3,339,427 | 3,275 |
Other comprehensive income (loss) | 68,278 | 68,278 | 68,278 | ||||||||
Acquisitions (in shares) | 2,982,346 | ||||||||||
Acquisitions | 89,604 | 89,604 | 89,604 | ||||||||
Restricted stock and restricted stock unit activity (in shares) | 1,000,935 | ||||||||||
Restricted stock and restricted stock unit activity | 29,259 | $ 1 | 50,421 | (21,163) | 29,259 | ||||||
Stock options exercised (in shares) | 1,223 | ||||||||||
Stock options exercised | 25 | 25 | 25 | ||||||||
Exchange of exchangeable shares (in shares) | 6,029,341 | (6,029,341) | |||||||||
Settlement of accelerated stock repurchase / Common stock repurchases (in shares) | (1,382,292) | ||||||||||
Settlement of accelerated stock repurchase / Common stock repurchases | (50,000) | (50,000) | (50,000) | ||||||||
Retirement of preferred stock (in shares) | (1) | ||||||||||
Distributions to non-controlling interests | (2,001) | (2,001) | |||||||||
Buyout of a non-controlling interest | (463) | (463) | |||||||||
Net income | 318,225 | 314,978 | 314,978 | 3,247 | |||||||
Balance (in shares) at Dec. 31, 2017 | 153,342,326 | 486,112 | 0 | 1 | |||||||
Balance at Dec. 31, 2017 | 3,795,629 | $ 2 | $ 0 | $ 0 | $ 0 | 1,889,356 | 2,191,059 | (203,395) | (85,451) | 3,791,571 | 4,058 |
Other comprehensive income (loss) | (82,653) | (82,653) | (82,653) | ||||||||
Acquisitions (in shares) | 679,668 | ||||||||||
Acquisitions | 22,882 | 22,882 | 22,882 | ||||||||
Restricted stock and restricted stock unit activity (in shares) | 998,631 | ||||||||||
Restricted stock and restricted stock unit activity | 37,417 | $ 0 | 55,116 | (17,699) | 37,417 | ||||||
Settlement of accelerated stock repurchase / Common stock repurchases (in shares) | (13,916,725) | ||||||||||
Settlement of accelerated stock repurchase / Common stock repurchases | (451,290) | (451,290) | (451,290) | ||||||||
Dividends declared | (5,838) | (5,838) | (5,838) | ||||||||
Distributions to non-controlling interests | (4,038) | (4,038) | |||||||||
Buyout of a non-controlling interest | (1,387) | (1,387) | |||||||||
Net income | 296,007 | 293,346 | 293,346 | 2,661 | |||||||
Balance (in shares) at Dec. 31, 2018 | 141,103,900 | 486,112 | 0 | 1 | |||||||
Balance at Dec. 31, 2018 | $ 3,605,453 | $ 2 | $ 0 | $ 0 | $ 0 | $ 1,967,354 | $ 2,477,291 | $ (286,048) | $ (554,440) | $ 3,604,159 | $ 1,294 |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | BUSINESS AND ORGANIZATION: Quanta Services, Inc. (Quanta) is a leading provider of specialty contracting services, delivering comprehensive infrastructure solutions for the electric power, energy and communications industries in the United States, Canada, Australia, Latin America and select other international markets. Quanta reports its results under two reportable segments: (1) Electric Power Infrastructure Services and (2) Pipeline and Industrial Infrastructure Services. As of December 31, 2018, Quanta changed the name of its Oil and Gas Infrastructure Services segment to the Pipeline and Industrial Infrastructure Services segment. There was no change to the composition of the segment, and the name change was made to better reflect the work performed within the segment and the diversity of its service offerings. Electric Power Infrastructure Services Segment The Electric Power Infrastructure Services segment provides comprehensive network solutions to customers in the electric power industry. Services performed by the Electric Power Infrastructure Services segment generally include the design, installation, upgrade, repair and maintenance of electric power transmission and distribution infrastructure and substation facilities along with other engineering and technical services. This segment also provides emergency restoration services, including the repair of infrastructure damaged by inclement weather, the energized installation, maintenance and upgrade of electric power infrastructure utilizing unique bare hand and hot stick methods and Quanta’s proprietary robotic arm technologies, and the installation of “smart grid” technologies on electric power networks. In addition, this segment provides services that support the development of renewable energy generation, including solar, wind and certain types of natural gas generation facilities, and related switchyards and transmission infrastructure. This segment also provides comprehensive communications infrastructure services to wireline and wireless telecommunications companies, cable multi-system operators and other customers within the communications industry; services in connection with the construction of electric power generation facilities; and the design, installation, maintenance and repair of commercial and industrial wiring. This segment also includes Quanta’s postsecondary educational institution, which specializes in pre-apprenticeship training, apprenticeship training and specialized utility task training for electric workers, and has been recently expanded to include curriculum for the gas distribution and communications industries. Pipeline and Industrial Infrastructure Services Segment The Pipeline and Industrial Infrastructure Services segment provides comprehensive infrastructure solutions to customers involved in the development, transportation, storage and processing of natural gas, oil and other products. Services performed by the Pipeline and Industrial Infrastructure Services segment generally include the design, installation, repair and maintenance of pipeline transmission and distribution systems, gathering systems, production systems, storage systems and compressor and pump stations, as well as related trenching, directional boring and mechanized welding services. In addition, this segment’s services include pipeline protection, integrity testing, rehabilitation and replacement, and the fabrication of pipeline support systems and related structures and facilities for natural gas utilities and midstream companies. Quanta also provides high-pressure and critical-path turnaround services to the downstream and midstream energy markets and instrumentation and electrical services, piping, fabrication and storage tank services. To a lesser extent, this segment serves the offshore and inland water energy markets and designs, installs and maintains fueling systems and water and sewer infrastructure. Acquisitions During the year ended December 31, 2018, Quanta acquired an electrical infrastructure services business specializing in substation construction and relay services, a postsecondary educational institution that provides pre-apprenticeship training and programs for experienced linemen and two communications infrastructure services businesses, all of which are located in the United States. The results of the acquired businesses have generally been included in Quanta’s Electric Power Infrastructure Services segment and have been included in Quanta’s consolidated financial statements beginning on the respective acquisition dates. On July 20, 2017, Quanta acquired Stronghold, Ltd. and Stronghold Specialty, Ltd. (collectively Stronghold), a specialized services business located in the United States that provides high-pressure and critical-path solutions to the downstream and midstream energy markets. The results of the acquired business are generally included in Quanta’s Pipeline and Industrial Infrastructure Services segment and have been included in Quanta’s consolidated financial statements beginning on the acquisition date. During the year ended December 31, 2017, Quanta also acquired a communications infrastructure services contractor and an electrical and communications contractor, both of which are located in the United States. The results of these acquired businesses are generally included in Quanta’s Electric Power Infrastructure Services segment and have been included in Quanta’s consolidated financial statements beginning on the respective acquisition dates. During 2016, Quanta completed five |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation The consolidated financial statements of Quanta include the accounts of Quanta Services, Inc. and its wholly owned subsidiaries, which are also referred to as its operating units. The consolidated financial statements also include the accounts of certain of Quanta’s investments in joint ventures, which are either consolidated or proportionately consolidated, as discussed in the following summary of significant accounting policies. Investments in affiliated entities in which Quanta does not have a controlling financial interest, but over which Quanta has significant influence, usually because Quanta holds a voting interest of between 20% and 50%, are accounted for using the equity method. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, references to Quanta include Quanta Services, Inc. and its consolidated subsidiaries. Reclassifications Quanta reclassified certain prior period amounts related to restricted cash and proceeds from the settlement of insurance claims related to property and equipment in the accompanying consolidated statements of cash flows to conform to the current period presentation under recently adopted accounting updates. See Note 3 for further details regarding these updates. Quanta also reclassified certain amounts related to cash paid for investments in unconsolidated affiliates and other entities and cash received from investments in unconsolidated affiliates and other entities on the accompanying statements of cash flows to conform to the current period presentation. Additionally, the amounts previously reported as “Costs and estimated earnings in excess of billings on uncompleted contracts” and “Billings in excess of costs and estimated earnings on uncompleted contracts” on Quanta’s consolidated balance sheets prior to 2018 have been included in the newly titled “Contract assets” and “Contract liabilities” in accordance with the newly adopted revenue recognition guidance discussed below and in Note 3. Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses recognized during the periods presented. Quanta reviews all significant estimates affecting its consolidated financial statements on a recurring basis and records the effect of any necessary adjustments prior to their publication. Judgments and estimates are based on Quanta’s beliefs and assumptions derived from information available at the time such judgments and estimates are made. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements. Estimates are primarily used in Quanta’s assessment of the allowance for doubtful accounts, valuation of inventory, useful lives of assets, fair value assumptions in analyzing goodwill, other intangibles and long-lived asset impairments, equity and other investments, purchase price allocations, acquisition-related contingent consideration liabilities, liabilities for insurance and other claims and guarantees, multiemployer pension plan withdrawal liabilities, contingent liabilities, revenue recognition for construction contracts inclusive of contractual change orders and claims, share-based compensation, operating results of reportable segments, as well as the provision for income taxes and the calculation of uncertain tax positions. Revenue Recognition As discussed in Note 3, effective January 1, 2018, Quanta adopted new revenue recognition guidance using the modified retrospective transition method, applying the guidance to contracts with customers that were not substantially complete as of such date. Quanta’s financial results for reporting periods after January 1, 2018 are presented under the new guidance, while financial results for prior periods will continue to be reported in accordance with the prior guidance and Quanta’s historical accounting policy. The net cumulative adjustment due to adoption of the new guidance was a $1.3 million reduction to retained earnings as of January 1, 2018, which represented a $1.8 million decrease to revenue recognized prior to adoption, net of $0.5 million in taxes. The adjustment primarily related to certain contracts that are now accounted for as a single performance obligation but were previously accounted for separately for revenue recognition purposes. Quanta does not anticipate significant changes to the pattern of revenue recognition for contracts with customers and does not believe that the guidance surrounding the identification of contracts and performance obligations or the measurement of variable consideration will have a material impact on revenue recognition under its customary contractual arrangements. If Quanta had not adopted the new revenue recognition guidance effective January 1, 2018, it would have recognized $2.0 million of additional revenues during the year ended December 31, 2018 . Contracts Quanta designs, installs, upgrades, repairs and maintains infrastructure for customers in the electric power, energy and communications industries. These services may be provided pursuant to master service agreements (MSAs), repair and maintenance contracts and fixed price and non-fixed price installation contracts. These contracts are classified into three categories based on how transaction prices are determined and revenue is recognized: unit-based contracts, cost-plus contracts and fixed price contracts. Transaction prices for unit-based contracts are determined on a per unit basis, transaction prices for cost-plus contracts are determined by applying a profit margin to costs incurred on the contracts and transaction prices for fixed price contracts are determined on a lump-sum basis. All of Quanta’s revenues are recognized from contracts with its customers. In addition to the considerations described below, revenue is not recognized unless collectability under the contract is considered probable, the contract has commercial substance and the contract has been approved. Additionally, the contract must contain payment terms, as well as the rights and commitments of both parties. Performance Obligations A performance obligation is a promise in a contract with a customer to transfer a distinct good or service. Most of Quanta’s contracts are considered to have a single performance obligation whereby Quanta is required to integrate complex activities and equipment into a deliverable for the customer. For contracts with multiple performance obligations, Quanta allocates the transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. The standalone selling price is estimated using the expected costs plus a margin approach for each performance obligation. At December 31, 2018 , the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations was estimated to be approximately $4.68 billion , of which 66.2% was expected to be recognized in the subsequent twelve months . This amount represents management’s estimate of the consolidated revenues that are expected to be realized from the remaining portion of firm orders under fixed price contracts not yet completed or for which work has not yet begun. For purposes of calculating remaining performance obligations, Quanta includes all estimated revenues attributable to consolidated joint ventures and variable interest entities, revenues from funded and unfunded portions of government contracts to the extent they are reasonably expected to be realized and revenues from change orders and claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations were potential orders under MSAs and non-fixed price contracts expected to be completed within one year. Recognition of Revenue Upon Satisfaction of Performance Obligations A transaction price is determined for each contract, and that amount is allocated to each performance obligation within the contract and recognized as revenue when, or as, the performance obligation is satisfied. Quanta generally recognizes revenue over time as it performs its obligations because there is a continuous transfer of control of the deliverable to the customer. Under unit-based contracts with an insignificant amount of partially completed units, Quanta recognizes revenue as units are completed based on contractual pricing amounts. Under unit-based contracts with more than an insignificant amount of partially completed units and fixed price contracts, Quanta recognizes revenues as performance obligations are satisfied over time, with the percentage completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation. Under cost-plus contracts, Quanta recognizes revenue on an input basis, as labor hours are incurred, materials are utilized and services are performed. Contract costs include all direct materials, labor and subcontract costs and indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. The majority of the materials associated with Quanta’s work are owner-furnished, and therefore not included in contract revenues and costs. Additionally, Quanta may incur incremental costs to obtain certain contracts, such as selling and marketing costs, bid and proposal costs, sales commissions, and legal fees or initial set-up or mobilization costs, certain of which can be capitalized under the newly adopted revenue recognition guidance. Such costs were not material during the year ended December 31, 2018 . Contract Estimates Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors, including unforeseen or changed circumstances not included in Quanta’s cost estimates or covered by its contracts. The estimating process is based on the professional knowledge and experience of Quanta’s engineers, project managers and financial professionals. Some of the factors that may lead to changes in estimates include concealed or unknown environmental conditions; changes in the cost of equipment, commodities, materials or labor; unanticipated costs or claims due to delays caused by customers or third parties; customer failure to provide required materials or equipment; errors in engineering, specifications or designs; project modifications or contract termination; weather conditions; changes in estimates related to the length of time to complete a performance obligation; and performance and quality issues requiring rework or replacement. These factors, along with other risks inherent in performing services under fixed price contracts, are routinely evaluated by management. Any changes in estimates could result in changes in profitability or losses associated with the related performance obligations. For example, estimated costs for a performance obligation may increase from the original estimate and contractual provisions may not allow for adequate compensation or reimbursement for such additional costs. Changes in estimated revenues, costs and profit are recorded in the period they are determined to be probable and can be reasonably estimated. Contract losses are recognized in full when losses are determined to be probable and can be reasonably estimated. Changes in cost estimates on certain contracts may result in the issuance of change orders and/or claims, which may be approved or unapproved by the customer. Quanta determines the probability that such costs will be recovered based on, among other things, contractual entitlement, past practices with the customer, specific discussions or preliminary negotiations with the customer or verbal approvals by the customer. Quanta recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reliably estimated. Most of Quanta’s change orders are for services that are not distinct from an existing contract and are accounted for as part of an existing contract on a cumulative catch-up basis. Quanta accounts for a change order as a separate contract if the additional goods or services are distinct from and increase the scope of the contract, and the price of the contract increases by an amount commensurate to Quanta’s standalone selling price for the additional goods or services. As of December 31, 2018 and 2017 , Quanta had recognized revenues of $121.8 million and $144.0 million related to change orders and claims included as contract price adjustments and that were in the process of being negotiated in the normal course of business. These aggregate amounts, which were included in “Contract assets” in the accompanying consolidated balance sheets, represent management’s estimates of additional contract revenues that were earned and probable of collection. However, Quanta’s estimates could be incorrect and the amount ultimately realized could be significantly higher or lower than the estimated amount. Variable consideration amounts, including performance incentives, early pay discounts and penalties, may also cause changes in contract estimates. The amount of variable consideration is estimated based on the most likely amount that is deemed probable of realization. Contract consideration is adjusted for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur once the uncertainty related to the variable consideration is resolved. Changes in contract estimates are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. Such changes in estimates can result in the recognition of revenue in a current period for performance obligations that were satisfied or partially satisfied in prior periods. Such changes in estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. The impact of a change in estimate is measured as the difference between the revenue or gross profit recognized in the prior period as compared to the revenue or gross profit which would have been recognized had the revised estimate been used as the basis of recognition in the prior period. Quanta’s operating results for the years ended December 31, 2018 and 2017 were impacted by less than 5% as a result of aggregate changes in contract estimates related to projects that were in progress at December 31, 2017 and 2016 , respectively. However, certain projects were materially impacted by changes to total estimated contract revenues and/or costs during the year ended December 31, 2018 . Quanta experienced engineering and production delays on an ongoing processing facility construction project in Texas, which resulted in additional estimated construction costs. These changes in estimates negatively impacted gross profit related to work performed in prior periods by $34.2 million during the year ended December 31, 2018 . At December 31, 2018 , this project had a contract value of approximately $150 million , was approximately 88% complete and is expected to be completed in 2019. Quanta also experienced unexpected site conditions, adverse weather conditions and material delivery delays on a renewable energy power project in Australia that negatively impacted gross profit related to work performed in prior periods by $22.3 million during the year ended December 31, 2018 . At December 31, 2018 , this project had a contract value of approximately $75 million and was approximately 86% complete. Additionally, a natural gas pipeline construction project in the northeast United States experienced weather delays and project performance issues resulting in additional estimated construction costs that negatively impacted gross profit related to work performed in prior periods by $17.3 million during the year ended December 31, 2018 . At December 31, 2018 , this project had a contract value of approximately $50 million and was approximately 99% complete. Quanta also successfully executed through project procurement, winter schedule challenges and productivity risks on an electrical transmission project in Canada, resulting in reductions to the estimated total costs necessary to complete the project. These changes positively impacted gross profit related to work performed in prior periods by $52.2 million during the year ended December 31, 2018 . Revenues by Category The following tables present Quanta’s revenue disaggregated by geographic location and contract type for the year ended December 31, 2018 (in thousands): Year Ended December 31, 2018 By primary geographic location: United States $ 8,575,341 76.7 % Canada 1,984,214 17.8 % Australia 377,453 3.4 % Latin America and Other 234,415 2.1 % Total revenues $ 11,171,423 100.0 % Year Ended December 31, 2018 By contract type: Unit-price contracts $ 3,828,997 34.3 % Fixed price contracts 4,835,401 43.3 % Cost-plus contracts 2,507,025 22.4 % Total revenues $ 11,171,423 100.0 % As described above, under unit-based contracts with more than an insignificant amount of partially completed units and fixed price contracts, revenue is recognized as performance obligations are satisfied over time, with the percentage completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation. Approximately 57.7% of Quanta’s revenues recognized during the year ended December 31, 2018 were associated with this revenue recognition method. Contract Assets and Liabilities With respect to Quanta’s contracts, interim payments are typically received as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. As a result, under fixed price contracts the timing of revenue recognition and contract billings results in contract assets and contract liabilities. Contract assets represent revenues recognized in excess of amounts billed for fixed price contracts and are current assets that are transferred to accounts receivable when billed or the billing rights become unconditional. Contract assets are not considered a significant financing component as the intent is to protect the customer in the event Quanta does not perform on its obligations under the contract. Conversely, contract liabilities represent billings in excess of revenues recognized for fixed price contracts. These arise under certain contracts that allow for upfront payments from the customer or contain contractual billing milestones, which result in billings that exceed the amount of revenues recognized for certain periods. Contract liabilities are current liabilities and are not considered a significant financing component, as they are used to meet working capital requirements that are generally higher in the early stages of a contract and protect Quanta from the other party failing to meet its obligations under the contract. Contract assets and liabilities are recorded on a performance obligation basis at the end of each reporting period. Contract assets and liabilities consisted of the following (in thousands): December 31, 2018 December 31, 2017 Contract assets $ 576,891 $ 497,292 Contract liabilities $ 425,961 $ 433,387 The increase in contract assets as of December 31, 2018 was primarily due to an increase in the volume of fixed price contracts in process. During the year ended December 31, 2018 , Quanta recognized revenue of approximately $400.0 million related to contract liabilities outstanding at December 31, 2017 . Additionally, during the year ended December 31, 2018 , revenues were favorably impacted by $71.9 million as a result of changes in estimates associated with performance obligations on fixed price contracts partially satisfied prior to December 31, 2017 . Impairment losses recognized on contract assets were not material for the year ended December 31, 2018 . Current and Long-Term Accounts Receivable, Notes Receivable and Allowance for Doubtful Accounts Quanta provides an allowance for doubtful accounts when collection of an account or note receivable is considered doubtful, and receivables are written off against the allowance when deemed uncollectible. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates regarding, among other factors, the customer’s access to capital, the customer’s willingness or ability to pay, general economic and market conditions, the ongoing relationship with the customer and uncertainties related to the resolution of disputed matters. Quanta considers accounts receivable delinquent after 30 days but does not generally include delinquent accounts in its analysis of the allowance for doubtful accounts unless the accounts receivable have been outstanding for at least 90 days. Quanta also includes accounts receivable balances that relate to customers in bankruptcy or with other known difficulties in its analysis of the allowance for doubtful accounts. Material changes to a customer’s business, cash flows or financial condition, which may be impacted by negative economic and market conditions, could affect Quanta’s ability to collect amounts due. Should anticipated recoveries relating to receivables fail to materialize (including anticipated recoveries relating to existing bankruptcies or other workout situations), Quanta could experience reduced cash flows and losses in excess of current allowances provided. As of December 31, 2018 and 2017 , Quanta had allowances for doubtful accounts on current receivables of $5.8 million and $4.5 million . See Note 18 for additional information related to the bankruptcy matter involving PG&E Corporation and its primary operating subsidiary, Pacific Gas and Electric Company (collectively PG&E), a significant customer of Quanta, which was filed on January 29, 2019. Long-term accounts receivable are included within “Other assets, net” in the accompanying consolidated balance sheets. Some contracts allow customers to withhold a small percentage of billings pursuant to retainage provisions, and such amounts are generally due upon completion of the contracts and acceptance by the customer. Based on Quanta’s experience with similar contracts in recent years, the majority of the retainage balances at each balance sheet date are expected to be collected within the next twelve months. Current retainage balances as of December 31, 2018 and 2017 were $337.1 million and $300.5 million and were included in “Accounts receivable.” Retainage balances with settlement dates beyond the next twelve months were included in “Other assets, net,” and as of December 31, 2018 and 2017 were $99.6 million and $41.9 million . Quanta recognizes unbilled receivables for non-fixed price contracts within “Accounts receivable” in certain circumstances, such as when revenues have been earned and recorded but the amount cannot be billed under the terms of the contract until a later date or amounts arise from routine lags in billing (for example, work completed one month but not billed until the next month). These balances do not include revenues recognized for work performed under fixed-price contracts as these amounts are recorded as “Contract assets.” At December 31, 2018 and 2017 , the balances of unbilled receivables included in “Accounts receivable” were $434.9 million and $303.9 million . Quanta also recognizes unearned revenues for non-fixed price contracts when cash is received prior to recognizing revenues for the related performance obligation. Unearned revenues, which are included in “Accounts payable and accrued expenses,” were $40.1 million and $16.0 million at December 31, 2018 and 2017 . Practical Expedients and Exemptions Quanta utilizes certain practical expedients and exemptions associated with the new revenue recognition guidance. For example, Quanta elected the modified retrospective transition method, which allowed the guidance to be applied only to contracts that were not considered substantially complete as of January 1, 2018. Additionally, in cases where Quanta has a right to consideration from a customer in an amount that corresponds directly with the value of Quanta’s performance completed to date, Quanta recognizes revenue in the amount to which it has a right to invoice and does not disclose such performance as a remaining performance obligation. Also, contract consideration is not adjusted for the effects of a significant financing component if payment is expected to be collected less than one year from when the services are performed. Cash and Cash Equivalents Amounts related to Quanta’s cash and cash equivalents based on geographic location of the bank accounts were as follows (in thousands): December 31, 2018 2017 Cash and cash equivalents held in domestic bank accounts $ 62,495 $ 83,074 Cash and cash equivalents held in foreign bank accounts 16,192 55,211 Total cash and cash equivalents $ 78,687 $ 138,285 Cash consisting of interest-bearing demand deposits is carried at cost, which approximates fair value. Quanta considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents, which are carried at fair value. At December 31, 2018 and 2017 , cash equivalents were $37.2 million and $7.1 million and consisted primarily of money market investments and money market mutual funds and are discussed further in Fair Value Measurements below. Cash and cash equivalents held by joint ventures, which are either consolidated or proportionately consolidated, are available to support joint venture operations, but Quanta cannot utilize those assets to support its other operations. Quanta generally has no right to the joint ventures’ cash and cash equivalents other than participating in distributions and in the event of dissolution. Amounts related to cash and cash equivalents held by joint ventures, which are included in Quanta’s total cash and cash equivalents balances, were as follows (in thousands): December 31, 2018 2017 Cash and cash equivalents held by domestic joint ventures $ 8,544 $ 10,042 Cash and cash equivalents held by foreign joint ventures 441 6,615 Total cash and cash equivalents held by joint ventures 8,985 16,657 Cash and cash equivalents not held by joint ventures 69,702 121,628 Total cash and cash equivalents $ 78,687 $ 138,285 Inventories Inventories consist primarily of parts and supplies held for use in the ordinary course of business, which are valued by Quanta at the lower of cost or net realizable value. Cost is determined by using either the first-in, first-out (FIFO) method or the average costing method. Inventories also include certain job specific materials not yet installed, which are valued using the specific identification method. Property and Equipment Property and equipment are stated at cost, and depreciation is computed using the straight-line method, net of estimated salvage values, over the estimated useful lives of the assets. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Depreciation expense related to property and equipment is recognized on a straight-line basis over the estimated useful lives of the assets and was $202.5 million , $183.8 million and $170.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Accrued capital expenditures were $2.7 million and $9.6 million as of December 31, 2018 and 2017 . The impact of these items has been excluded from Quanta’s capital expenditures in the accompanying consolidated statements of cash flows due to their non-cash nature. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing equipment, are capitalized and depreciated over the adjusted remaining useful lives of the assets. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in selling, general and administrative expenses. Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be realizable. When an evaluation is required, the estimated future undiscounted cash flows associated with the asset group are compared to the asset group’s carrying amount to determine if an impairment is necessary. The effect of any impairment involves expensing the difference between the fair value of the asset group and its carrying amount in the period incurred. Quanta recorded asset impairments of $49.4 million during the year ended December 31, 2018 related to the winding down of certain oil-influenced operations and assets. The related long-lived assets have been written down to their estimated fair value of $14.0 million and have been classified as assets held for sale and recorded in “Prepaid expenses and other current assets” in the accompanying December 31, 2018 consolidated balance sheet. These assets are associated with Quanta’s Pipeline and Industrial Infrastructure Services segment. Additionally, Quanta recorded asset impairments of $8.0 million in 2016 primarily related to certain international renewable energy services operations. The 2016 impairment was primarily due to a pending disposition of certain international renewable energy services operations that was completed in 2017. Other Assets, Net Other assets, net consists primarily of long-term receivables, long-term retainage, deferred tax assets, debt issuance costs, equity and other investments, refundable security deposits for leased properties and insurance claims in excess of deductibles that are due from Quanta’s insurers. Debt Issuance and Amendment Costs Capitalized debt issuance and amendment costs related to Quanta’s senior secured credit facility are included in “Other assets, net” in the accompanying consolidated balance sheets and are amortized into interest expense on a straight-line basis over the terms of the respective agreements giving rise to the costs, which Quanta believes approximates the effective interest rate method. During 2018 and 2017, Quanta incurred $2.0 million and $1.5 million of debt issuance and amendment costs related to amendments and a restatement of its credit agreement. In 2017, Quanta recorded a nominal charge to interest expense for the write-off of a portion of the debt issuance and amendment costs related to the prior facility. As of December 31, 2018 and 2017 , capitalized debt issuance costs were $14.9 million and $12.9 million , with accumulated amortization of $8.6 million and $7.4 million . For the years ended December 31, 2018 , 2017 and 2016 , amortization expense related to capitalized debt issuance and amendment costs was $1.3 million , $1.3 million and $1.4 million , respectively. Goodwill Goodwill, net of accumulated impairment losses, which represents the excess of cost over the fair market value of net tangible and identifiable intangible assets of acquired businesses, is stated at cost. Goodwill is not amortized but instead is annually tested for impairment, or more frequently if events or circumstances indicate that the carrying amount of goodwill may be impaired. Quanta has recorded goodwill in connection with its historical acquisitions of businesses. Upon acquisition, these businesses were either combined into one of Quanta’s existing operating units or managed on a stand-alone basis as an individual operating unit. Quanta’s operating units are organized into one of two internal divisions. The two internal divisions are: the Electric Power Infrastructure Services Division and the Pipeline and Industrial Infrastructure Services Division. As most of the companies acquired by Quanta provide multiple types of services for multiple types of customers, these divisional designations are based on the predominant type of work performed by an op |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS: Adoption of New Accounting Pronouncements In May 2014 , the Financial Accounting Standards Board (FASB) issued an update that superseded most revenue recognition guidance, as well as certain cost recognition guidance. The update, together with other clarifying updates, requires that the recognition of revenue related to the transfer of goods or services to customers reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update also requires additional qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments, and information about contract balances and performance obligations. Quanta adopted the new revenue recognition guidance using the modified retrospective transition method effective January 1, 2018 , applying the guidance to contracts that were not substantially complete as of such date. Quanta’s financial results for reporting periods after January 1, 2018 have been and will be presented under the new guidance, while financial results for prior periods will continue to be reported in accordance with the prior guidance and Quanta’s historical accounting policy. The net cumulative adjustment resulting from adoption was a $1.3 million reduction to retained earnings as of January 1, 2018 , which represented a $1.8 million decrease to revenue recognized prior to adoption, net of $0.5 million in taxes. This adjustment primarily related to certain contracts that are now accounted for as a single performance obligation but were previously accounted for separately for revenue recognition purposes. Quanta has not experienced significant changes to the pattern of revenue recognition for its contracts, the identification of contracts and performance obligations or the measurement of variable consideration. For the year ended December 31, 2018 , the impact related to the adoption of the new revenue recognition guidance on revenues, contract assets and contract liabilities was immaterial. If Quanta had not adopted the new revenue recognition guidance effective January 1, 2018, it would have recognized $2.0 million of additional revenues during the year ended December 31, 2018 . Quanta has also expanded its discussion in Note 2 above to address the quantitative and qualitative disclosure requirements of the new revenue recognition standard. In January 2016 , the FASB issued an update that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments to provide users of financial statements with more decision-useful information. This update requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus observable price changes in orderly transactions for an identical or a similar investment of the same company. Quanta adopted the new standard effective January 1, 2018 . Quanta’s equity investments that are within the scope of this update do not have readily determinable fair values. Accordingly, Quanta continues to measure these investments at cost less any impairments and also considers changes resulting from any observable price changes as described above. The new standard is not expected to have a material impact on Quanta’s consolidated financial statements in the near-term based on the number and amount of equity investments held at the time of adoption. In August 2016 , the FASB issued an update intended to standardize the classification of certain transactions on the statements of cash flows . These transactions include contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investments. The new standard requires application using a retrospective transition method. Quanta adopted this guidance effective January 1, 2018 , and the changes did not have a material impact on its consolidated financial statements. In October 2016 , the FASB issued an update that requires a reporting entity to recognize the tax expense from the sale of an asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction should be recognized at the time of the transfer. The new guidance does not apply to intra-entity transfers of inventory. The income tax consequences from the sale of inventory from one member of a consolidated entity to another will continue to be deferred until the inventory is sold to a third party. Quanta adopted this guidance effective January 1, 2018 utilizing the modified retrospective method, and the changes did not have a material impact on its consolidated financial statements. In November 2016 , the FASB issued an update intended to standardize the classification of restricted cash and cash equivalents transactions on the statement of cash flows . The new guidance requires net cash withdrawn from (deposited to) restricted cash to be removed from investing activities. Additionally, restricted cash balances for each period are included with “Cash and cash equivalents” in order to obtain beginning and ending balances for consolidated statement of cash flow purposes, and any activity between “Cash and cash equivalents” and restricted cash is no longer reported on Quanta’s consolidated statements of cash flows. Quanta adopted this guidance effective January 1, 2018 utilizing the retrospective transition method, and the changes did not have a material impact on its consolidated financial statements. See Note 15 for reconciliations of “Cash and cash equivalents” and restricted cash. In January 2017 , the FASB issued an update intended to clarify whether transactions should be accounted for as acquisitions or disposals of assets or businesses. When substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or group of similar identifiable assets, the asset or group is not a business. The update requires, among other things, that to be considered a business , a set of assets and activities must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. Additionally, the update removes the evaluation of whether a market participant could replace missing elements in order to consider the set of assets and activities a business, provides more stringent criteria for sets without outputs and narrows the definition of output. Quanta adopted this guidance effective January 1, 2018 utilizing the prospective transition method, and the changes did not materially impact its consolidated financial statements. In May 2017 , the FASB issued an update providing guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. A modification should be accounted for unless the following characteristics of the award are unchanged: the fair value, the vesting conditions and the classification as an equity instrument or a liability instrument. Quanta adopted this guidance effective January 1, 2018 using the prospective transition method, and the changes did not materially impact its consolidated financial statements. In June 2018 , the FASB issued an update that expands the scope of share-based payment accounting to include share-based payment transactions for acquiring goods and services from non-employees. Quanta adopted this guidance in 2018, which did not materially impact Quanta’s consolidated financial statements. In August 2018 , the FASB issued an update that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Quanta adopted this guidance in 2018, which did not materially impact Quanta’s consolidated financial statements. Quanta will apply the new guidance prospectively. Accounting Standards Not Yet Adopted In February 2016 , the FASB issued an update that requires the recognition of operating lease right-of-use assets and the corresponding lease liabilities on the balance sheet. The new standard is effective for interim and annual periods beginning after December 15, 2018. In July 2018, the FASB issued an update that provides entities a choice between the previously required modified retrospective transition method and another transition method that allows entities to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Quanta established a cross-functional team to implement this standard and evaluated arrangements that would be subject to the standard, implemented software to meet the reporting and disclosure requirements of the standard and assessed the impact of the standard on its processes and internal controls. Quanta plans to elect the practical expedients that permit it to retain the identification and classification of leases under the previous accounting guidance, as well as an expedient where leases with terms of twelve months or less are not recorded on the balance sheet. Quanta will adopt this guidance effective January 1, 2019 . Quanta anticipates recording lease right-of-use assets and lease liabilities in similar amounts of between approximately $280 million and $320 million on its consolidated balance sheet as of January 1, 2019 , with any difference between the right-of-use assets and lease liabilities being recorded as a cumulative effect adjustment as of such date. The update is not anticipated to have a material effect on Quanta’s consolidated statement of operations and is not expected to have a material impact on Quanta’s compliance with the financial covenants under its senior secured credit facility. In June 2016 , the FASB issued an update that will change the way companies measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The update will require companies to use an “expected loss” model for instruments measured at amortized cost and to record allowances for available-for-sale debt securities rather than reduce the carrying amounts. The update will also require disclosure of information regarding how a company developed its allowance, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. Companies will apply this standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The new standard is effective for interim and annual reporting periods beginning after December 15, 2019. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements and will adopt this guidance effective January 1, 2020 . In August 2017 , the FASB issued an update that amends and simplifies existing guidance for presenting the economic effects of risk management activities in the financial statements. The update is effective for interim and annual periods beginning after December 15, 2018. The amended presentation and disclosure guidance is required only prospectively, but certain amendments, if applicable, could require a cumulative-effect adjustment. Quanta is evaluating the impact of this new standard on its consolidated financial statements and will adopt the new standard effective January 1, 2019 ; however, as of December 31, 2018 , Quanta had no hedging relationships outstanding. In August 2018 , the FASB issued an update that amends certain disclosure requirements related to fair value measurements. Certain disclosure requirements will be removed, such as the valuation processes for Level 3 fair value measurements, and other disclosure requirements will be modified or added, including a new requirement to disclose the range and weighted average (or a more reasonable and rational method to reflect the distribution) of significant unobservable inputs used to develop Level 3 fair value measurements. This update is effective for interim and annual periods beginning after December 15, 2019. Certain amendments, including the disclosure of the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements, should be applied prospectively, while other amendments should be applied retrospectively. Quanta is evaluating the impact of this new standard on its consolidated financial statements and will adopt the new standard effective January 1, 2020 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS: 2018 Acquisitions During the year ended December 31, 2018 , Quanta acquired an electrical infrastructure services business specializing in substation construction and relay services, a postsecondary educational institution that provides pre-apprenticeship training and programs for experienced linemen and two communications infrastructure services businesses, all of which are located in the United States. The aggregate consideration for these acquisitions was $106.8 million paid or payable in cash, subject to certain adjustments, and 679,668 shares of Quanta common stock, which had a fair value of approximately $22.9 million as of the respective acquisition dates. Additionally, the acquisitions of the postsecondary educational institution and one of the communications infrastructure services businesses include the potential payment of up to $18.0 million of contingent consideration, payable if the acquired businesses achieve certain performance objectives over five -year and three -year post-acquisition periods. Based on the estimated fair value of the contingent consideration, Quanta recorded $16.5 million of liabilities as of the respective acquisition dates. The results of the acquired businesses have generally been included in Quanta’s Electric Power Infrastructure Services segment and have been included in Quanta’s consolidated financial statements beginning on the respective acquisition dates. Quanta is in the process of finalizing its assessments of the fair values of the acquired assets and assumed liabilities related to businesses acquired during 2018 , and further adjustments to the purchase price allocations may occur. As of December 31, 2018 , the estimated fair values of the net assets acquired were preliminary, with possible updates primarily related to certain tax estimates. The aggregate purchase consideration of the businesses acquired during 2018 was allocated to acquired assets and assumed liabilities, which resulted in an allocation of $37.5 million to net tangible assets, $52.4 million to identifiable intangible assets and $56.3 million to goodwill. 2017 Acquisitions On July 20, 2017, Quanta acquired Stronghold, a specialized services business located in the United States that provides high-pressure and critical-path solutions to the downstream and midstream energy markets. The aggregate consideration included $351.0 million in cash, subject to certain adjustments, and 2,693,680 shares of Quanta common stock, which had a fair value of $81.3 million as of the acquisition date. Additionally, the acquisition includes the potential payment of up to $100.0 million of contingent consideration, payable if the acquired business achieves certain performance objectives over a three -year post-acquisition period. Based on the estimated fair value of the contingent consideration, Quanta recorded a $51.1 million liability as of the acquisition date. The results of the acquired business have generally been included in Quanta’s Pipeline and Industrial Infrastructure Services segment and have been included in Quanta’s consolidated financial statements since the acquisition date. During the year ended December 31, 2017, Quanta also acquired a communications infrastructure services business and an electrical and communications business, both of which are located in the United States. The aggregate consideration for these acquisitions consisted of $12.0 million paid or payable in cash, subject to certain adjustments, and 288,666 shares of Quanta common stock, which had a fair value of $8.3 million on the acquisition date of the applicable acquired business. The results of the acquired businesses have generally been included in Quanta’s Electric Power Infrastructure Services segment and consolidated financial statements since the respective acquisition dates. 2016 Acquisitions During 2016, Quanta completed five acquisitions. The results of four of the acquired businesses have been generally included in Quanta’s Electric Power Infrastructure Services segment and have been included in Quanta’s consolidated financial statements since their respective acquisition dates. These businesses included an electrical infrastructure services business located in Australia, a utility contracting business located in Canada, a full service medium- and high-voltage powerline contracting business located in the United States and a communications services business located in Canada. Quanta also acquired a pipeline services contractor located in the United States, the results of the acquired businesses have generally been included in Quanta’s Pipeline and Industrial Infrastructure Services segment since the acquisition date. The aggregate consideration for these acquisitions consisted of $75.9 million paid or payable in cash, subject to certain adjustments, 70,840 shares of Quanta common stock, which had a fair value of $1.5 million as of the settlement date of the applicable acquisition, and contingent consideration payments of up to $39.5 million , payable if certain of the acquired businesses achieve performance objectives over four- or five-year post-acquisition periods. Based on the estimated fair value of the contingent consideration, Quanta recorded a total of $18.7 million in liabilities as of the applicable acquisition dates. 2018 , 2017 and 2016 Acquisitions The following table summarizes the aggregate consideration paid or payable as of December 31, 2018 for the 2018 acquisitions and 2017 acquisitions and presents the allocation of these amounts to net tangible and identifiable intangible assets based on their estimated fair values as of the respective acquisition dates, inclusive of any purchase price adjustments. These allocations require significant use of estimates and are based on information that was available to management at the time these consolidated financial statements were prepared. Quanta uses a variety of information to estimate fair values, including quoted market prices, carrying amounts and valuation techniques such as discounted cash flows. When deemed appropriate, third-party appraisal firms are engaged to assist in fair value determination of fixed assets, intangible assets and certain other assets and liabilities (in thousands). 2018 2017 All Acquisitions Stronghold Other Acquisitions Consideration: Cash paid or payable $ 106,804 $ 351,014 $ 11,955 Value of Quanta common stock issued 22,882 81,337 8,267 Contingent consideration 16,471 51,084 — Fair value of total consideration transferred or estimated to be transferred $ 146,157 $ 483,435 $ 20,222 Accounts receivable $ 18,405 $ 77,478 $ 7,157 Contract assets 1,905 11,913 193 Other current assets 8,484 20,914 170 Property and equipment 23,674 51,258 1,480 Other assets 576 1,513 12 Identifiable intangible assets 52,364 95,700 8,091 Contract liabilities (175 ) (13,489 ) (93 ) Other current liabilities (11,205 ) (58,346 ) (2,705 ) Deferred tax liabilities, net (4,208 ) — — Other long-term liabilities — (48 ) — Total identifiable net assets 89,820 186,893 14,305 Goodwill 56,337 296,542 5,917 $ 146,157 $ 483,435 $ 20,222 Goodwill represents the amount by which the purchase price for an acquired business exceeds the net fair value of the assets acquired and liabilities assumed. The 2018 , 2017 and 2016 acquisitions strategically expanded Quanta’s Canadian, Australian and domestic electric power, energy and communications service offerings, which Quanta believes contributes to the recognition of the goodwill. Goodwill of $20.1 million and $251.4 million is expected to be deductible for income tax purposes related to the 2018 and 2017 acquisitions. The following table summarizes the estimated fair values of identifiable intangible assets for the 2018 acquisitions as of the acquisition dates and the related weighted average amortization periods by type (in thousands, except for weighted average amortization periods, which are in years). Estimated Weighted Average Fair Value Amortization Period in Years Customer relationships $ 30,767 5.3 Backlog 2,158 1.0 Trade names 7,689 15.0 Non-compete agreements 2,750 5.0 Curriculum $ 9,000 10.0 Total intangible assets subject to amortization acquired in 2018 acquisitions $ 52,364 7.4 The following unaudited supplemental pro forma results of operations have been provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future. Future results may vary significantly from the results reflected in the following pro forma financial information because of future events and transactions, as well as other factors (in thousands, except per share amounts): Year Ended December 31, 2018 2017 2016 Revenues $ 11,238,475 $ 9,848,386 $ 8,183,104 Gross profit $ 1,506,125 $ 1,356,515 $ 1,129,661 Selling, general and administrative expenses $ 865,452 $ 842,996 $ 734,900 Amortization of intangible assets $ 49,262 $ 49,918 $ 46,579 Net income from continuing operations $ 304,565 $ 333,386 $ 207,956 Net income from continuing operations attributable to common stock $ 301,904 $ 330,139 $ 206,241 Earnings per share from continuing operations: Basic $ 1.97 $ 2.08 $ 1.29 Diluted $ 1.95 $ 2.07 $ 1.29 The pro forma combined results of operations for the years ended December 31, 2018 and 2017 were prepared by adjusting the historical results of Quanta to include the historical results of the 2018 acquisitions as if they occurred January 1, 2017 . The pro forma combined results of operations for the year ended December 31, 2017 have also been prepared by adjusting the historical results of Quanta to include the historical results of the 2017 acquisitions as if they occurred January 1, 2016 . The pro forma combined results of operations for the year ended December 31, 2016 have been prepared by adjusting the historical results of Quanta to include the historical results of the 2017 acquisitions as if they occurred January 1, 2016 and the historical results of the 2016 acquisitions as if they occurred January 1, 2015 . These pro forma combined historical results were adjusted for the following: a reduction of interest expense as a result of the repayment of outstanding indebtedness of the acquired businesses; an increase in interest expense as a result of the cash consideration paid; an increase in amortization expense due to the incremental intangible assets recorded; changes in depreciation expense to adjust acquired property and equipment to the acquisition date fair value and to conform with Quanta’s accounting policies; an increase in the number of outstanding shares of Quanta common stock; and reclassifications to conform the acquired businesses’ presentation to Quanta’s accounting policies. The pro forma results of operations do not include any adjustments to eliminate the impact of acquisition-related costs or any cost savings or other synergies that resulted or may result from the acquisitions. As noted above, the pro forma results of operations do not purport to be indicative of the actual results that would have been achieved by the combined company for the periods presented or that may be achieved by the combined company in the future. Revenues of approximately $71.1 million and a loss from continuing operations before income taxes of approximately $8.9 million , which included $11.0 million of acquisition-related costs, were included in Quanta’s consolidated results of operations for the year ended December 31, 2018 related to the 2018 acquisitions. Revenues of approximately $207.4 million and a loss from continuing operations before income taxes of approximately $8.1 million , which included $5.4 million of acquisition-related costs, were included in Quanta’s consolidated results of operations for the year ended December 31, 2017 related to the 2017 acquisitions. Additionally, revenues of approximately $68.5 million and a loss from continuing operations before income taxes of approximately $5.6 million , which included $0.3 million of acquisition-related costs, were included in Quanta’s consolidated results of operations for the year ended December 31, 2016 related to the 2016 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS: As described in Note 2, Quanta’s operating units are organized into one of Quanta’s two internal divisions, and accordingly, the goodwill associated with the operating units has been aggregated on a divisional basis in the table below. These divisions are closely aligned with Quanta’s reportable segments, and operating units are assigned to a division based on the predominant type of work performed. From time to time, an operating unit may be reorganized between divisions if warranted due to changes in its predominant business. A summary of changes in Quanta’s goodwill is as follows (in thousands): Electric Power Infrastructure Services Division Pipeline and Industrial Infrastructure Services Division Total Balance at December 31, 2015: Goodwill $ 1,226,245 $ 366,306 $ 1,592,551 Accumulated impairment — (39,893 ) (39,893 ) $ 1,226,245 $ 326,413 1,552,658 Goodwill recorded related to 2016 acquisitions 24,168 21,018 45,186 Purchase price allocation adjustments 229 (214 ) 15 Foreign currency translation adjustments 3,337 1,973 5,310 Balance at December 31, 2016: Goodwill 1,253,979 388,923 1,642,902 Accumulated impairment — (39,733 ) (39,733 ) 1,253,979 349,190 1,603,169 Goodwill recorded related to 2017 acquisitions 5,866 296,542 302,408 Purchase price allocation adjustments (619 ) (659 ) (1,278 ) Goodwill impaired during 2017 — (57,011 ) (57,011 ) Foreign currency translation adjustments 13,301 8,011 21,312 Balance at December 31, 2017: Goodwill 1,272,527 693,905 1,966,432 Accumulated impairment — (97,832 ) (97,832 ) 1,272,527 596,073 1,868,600 Goodwill recorded related to 2018 acquisitions 56,337 — 56,337 Purchase price allocation adjustments 51 — 51 Foreign currency translation adjustments (15,837 ) (9,272 ) (25,109 ) Balance at December 31, 2018: Goodwill 1,313,078 683,284 1,996,362 Accumulated impairment — (96,483 ) (96,483 ) $ 1,313,078 $ 586,801 $ 1,899,879 Adjustments primarily represent changes in deferred tax liability estimates and would not have had a material impact on Quanta’s consolidated financial statements in prior periods had these adjustments been booked at the respective acquisition dates. The goodwill impairment in the year ended December 31, 2017 was associated with two reporting units within the Pipeline and Industrial Infrastructure Services Division. Specifically, a reporting unit that provides material handling services had experienced lower operating margins and was expected to continue to face a highly competitive environment in its select markets, and a reporting unit that provides marine and offshore services had experienced prolonged periods of reduced revenues and operating margins and was expected to continue to experience lower levels of activity in the U.S. Gulf of Mexico and other offshore markets. Quanta’s intangible assets and the remaining weighted average amortization periods related to its intangible assets subject to amortization were as follows (in thousands except for weighted average amortization periods, which are in years): As of As of As of December 31, December 31, 2018 December 31, 2017 2018 Intangible Assets Accumulated Amortization Intangible Assets, Net Intangible Assets Accumulated Amortization Intangible Assets, Net Remaining Weighted Average Amortization Period in Years Customer relationships $ 359,967 $ (165,715 ) $ 194,252 $ 327,334 $ (137,333 ) $ 190,001 6.2 Backlog 135,578 (134,592 ) 986 136,266 (135,847 ) 419 0.7 Trade names 81,058 (21,559 ) 59,499 74,797 (17,057 ) 57,740 15.4 Non-compete agreements 40,728 (30,168 ) 10,560 37,760 (27,659 ) 10,101 3.6 Patented rights and developed technology 22,482 (19,175 ) 3,307 22,529 (17,611 ) 4,918 2.7 Curriculum 9,448 (872 ) 8,576 — — — 9.1 Total intangible assets subject to amortization 649,261 (372,081 ) 277,180 598,686 (335,507 ) 263,179 8.0 Engineering license 3,000 — 3,000 — — — Total intangible assets $ 652,261 $ (372,081 ) $ 280,180 $ 598,686 $ (335,507 ) $ 263,179 Amortization expense for intangible assets was $44.0 million , $32.2 million and $31.7 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. During the year ended December 31, 2017, Quanta recorded an impairment charge of $1.1 million related to a customer relationships intangible asset, which primarily resulted from a strategic decision to restructure a business within a reporting unit in Quanta’s Pipeline and Industrial Infrastructure Services Division. The impairment charge recognized in 2017 is reflected in the accumulated amortization balances above. The estimated future aggregate amortization expense of intangible assets subject to amortization as of December 31, 2018 is set forth below (in thousands): Year Ending December 31: 2019 $ 47,135 2020 44,980 2021 42,657 2022 39,129 2023 31,323 Thereafter 71,956 Total $ 277,180 |
Per Share Information
Per Share Information | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Per Share Information | PER SHARE INFORMATION: The amounts used to compute basic and diluted earnings per share attributable to common stock for the years ended December 31, 2018 , 2017 and 2016 consisted of the following (in thousands): Year Ended December 31, 2018 2017 2016 Amounts attributable to common stock: Net income from continuing operations $ 293,346 $ 314,978 $ 198,725 Net loss from discontinued operations — — (342 ) Net income attributable to common stock $ 293,346 $ 314,978 $ 198,383 Weighted average shares: Weighted average shares outstanding for basic earnings per share attributable to common stock 152,963 156,124 157,287 Effect of dilutive unvested non-participating stock-based awards 1,263 1,031 1 Weighted average shares outstanding for diluted earnings per share attributable to common stock 154,226 157,155 157,288 Basic and diluted earnings per share attributable to common stock are computed using the weighted average number of shares of common stock outstanding during the applicable period. Exchangeable shares that were issued pursuant to certain of Quanta’s historical acquisitions (as further discussed in Note 10), which are exchangeable on a one -for-one basis with shares of Quanta common stock, have been included in the calculation of weighted average shares outstanding for basic and diluted earnings per share attributable to common stock for the portion of the periods that they were outstanding. Additionally, unvested stock-based awards that contain non-forfeitable rights to dividends or dividend equivalents (participating securities) have been included in the calculation of basic and diluted earnings per share attributable to common stock for the portion of the periods that the awards were outstanding. Weighted average shares outstanding for basic and diluted earnings per share attributable to common stock for the years ended December 31, 2018 , 2017 and 2016 included 2.6 million , 2.3 million and 2.6 million weighted average participating securities. |
Detail of Certain Balance Sheet
Detail of Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Detail of Certain Balance Sheet Accounts | DETAIL OF CERTAIN BALANCE SHEET ACCOUNTS: Activity in Quanta’s allowance for doubtful accounts consisted of the following (in thousands): December 31, 2018 2017 Balance at beginning of year $ 4,465 $ 2,752 Charged to bad debt expense (recoveries of bad debt expense) 7,169 87 Deductions for uncollectible receivables written off (recoveries of uncollectible receivables) (5,795 ) 1,626 Balance at end of year $ 5,839 $ 4,465 Property and equipment consisted of the following (in thousands): Estimated Useful December 31, Lives in Years 2018 2017 Land N/A $ 61,305 $ 48,832 Buildings and leasehold improvements 5-30 208,974 155,628 Operating equipment and vehicles 1-25 1,865,917 1,834,715 Office equipment, furniture and fixtures and information technology systems 3-10 212,769 170,115 Construction work in progress N/A 19,507 60,587 2,368,472 2,269,877 Less — Accumulated depreciation and amortization (1,092,440 ) (981,275 ) Property and equipment, net $ 1,276,032 $ 1,288,602 Accounts payable and accrued expenses consisted of the following (in thousands): December 31, 2018 2017 Accounts payable, trade $ 786,546 $ 632,931 Accrued compensation and related expenses 279,107 225,193 Accrued insurance, current portion 56,552 64,112 Deferred revenues, current portion 40,083 15,967 Income and franchise taxes payable 13,094 19,635 Other accrued expenses 139,138 99,622 $ 1,314,520 $ 1,057,460 |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Obligations | DEBT OBLIGATIONS: Quanta’s long-term debt obligations consisted of the following (in thousands): December 31, 2018 2017 Borrowings under senior secured credit facility $ 1,070,299 $ 668,427 Other long-term debt, interest rate of 2.4% 1,523 1,810 Capital leases, interest rates ranging from 2.5% to 3.8% 934 1,704 Total long-term debt obligations 1,072,756 671,941 Less — Current maturities of long-term debt 32,224 1,220 Total long-term debt obligations, net of current maturities $ 1,040,532 $ 670,721 Quanta’s current maturities of long-term debt and short-term debt consisted of the following (in thousands): December 31, 2018 2017 Short-term debt $ 33,422 $ — Current maturities of long-term debt 32,224 1,220 Current maturities of long-term debt and short-term debt $ 65,646 $ 1,220 Senior Secured Credit Facility Quanta has a credit agreement with various lenders that, as amended on October 10, 2018, provides for (i) a $1.99 billion revolving credit facility and (ii) a term loan facility with total term loan commitments of $600.0 million . In addition, subject to the conditions specified in the credit agreement, Quanta has the option to increase the capacity of the credit facility, in the form of an increase in the revolving credit facility, incremental term loans or a combination thereof, by up to an additional $400.0 million , from time to time, upon receipt of additional commitments from new or existing lenders. Borrowings under the credit agreement are to be used to refinance existing indebtedness and for working capital, capital expenditures and other general corporate purposes. The maturity date for both the revolving credit facility and the term loan facility is October 31, 2022, and Quanta is required to make quarterly payments on the term loan facility as described below. With respect to the revolving credit facility, the entire amount available may be used by Quanta for revolving loans and letters of credit in U.S. dollars and certain alternative currencies. Up to $600.0 million may be used by certain subsidiaries of Quanta for revolving loans and letters of credit in certain alternative currencies, up to $100.0 million may be used for swing line loans in U.S. dollars, up to $50.0 million may be used for swing line loans in Canadian dollars and up to $50.0 million may be used for swing line loans in Australian dollars. On October 10, 2018, Quanta borrowed the full amount of the term loan facility and used all of such proceeds to repay outstanding revolving loans. As of December 31, 2018 , Quanta had $1.07 billion of outstanding borrowings under the credit agreement, which included $592.5 million borrowed under the term loan facility and $477.8 million of outstanding revolving loans. Of the total outstanding borrowings, $883.8 million were denominated in U.S. dollars, $102.6 million were denominated in Canadian dollars and $83.9 million were denominated in Australian dollars. Quanta also had $412.9 million of letters of credit and bank guarantees issued under the revolving credit facility, of which $242.2 million were denominated in U.S. dollars and $170.7 million were denominated in currencies other than the U.S. dollar, primarily Canadian and Australian dollars. The remaining $1.09 billion of available commitments under the credit facility was available for loans or issuing new letters of credit and bank guarantees. Borrowings under the credit facility and the applicable interest rates during the years ended December 31, 2018 , 2017 and 2016 were as follows (dollars in thousands): Year Ended December 31, 2018 2017 2016 Maximum amount outstanding under the credit facility during the period $ 1,300,401 $ 917,895 $ 518,607 Average daily amount outstanding under the credit facility $ 914,012 $ 613,130 $ 458,908 Weighted-average interest rate 3.6 % 2.7 % 2.1 % Subsequent to November 19, 2017, revolving loans borrowed in U.S. dollars bear interest, at Quanta’s option, at a rate equal to either (i) the Eurocurrency Rate (as defined in the credit agreement) plus 1.125% to 2.000% , as determined based on Quanta’s Consolidated Leverage Ratio (as described below), or (ii) the Base Rate (as described below) plus 0.125% to 1.000% , as determined based on Quanta’s Consolidated Leverage Ratio. Revolving loans borrowed in any currency other than U.S. dollars bear interest at a rate equal to the Eurocurrency Rate plus 1.125% to 2.000% , as determined based on Quanta’s Consolidated Leverage Ratio. Additionally, standby or commercial letters of credit issued under the credit agreement are subject to a letter of credit fee of 1.125% to 2.000% , based on Quanta’s Consolidated Leverage Ratio, and Performance Letters of Credit (as defined in the credit agreement) issued under the credit agreement in support of certain contractual obligations are subject to a letter of credit fee of 0.675% to 1.150% , based on Quanta’s Consolidated Leverage Ratio. From December 18, 2015 through November 19, 2017, interest rates for revolving loans and letter of credit fees were generally consistent with those set forth above, other than the maximum additional interest rates and fee percentages were 0.125% higher. Term loans bear interest at rates generally consistent with the revolving loans borrowed in U.S. dollars, except that the additional amount over the Eurocurrency Rate is 1.125% to 1.875% , based on Quanta’s Consolidated Leverage Ratio. Quanta is also required to make quarterly principal payments of $7.5 million on the last business day of each March, June, September and December, which began in December 2018. The aggregate outstanding principal amount of all outstanding term loans must be paid on the maturity date; however, we may voluntarily prepay that amount from time to time, in whole or in part, without premium or penalty. Quanta is also subject to a commitment fee of 0.20% to 0.40% , based on its Consolidated Leverage Ratio, on any unused availability under the revolving credit facility. Consolidated Leverage Ratio is the ratio of Quanta’s Consolidated Funded Indebtedness to Consolidated EBITDA (as those terms are defined in the credit agreement). For purposes of calculating Quanta’s Consolidated Leverage Ratio, Consolidated Funded Indebtedness is reduced by available cash and cash equivalents (as defined in the credit agreement) in excess of $25.0 million . The Base Rate equals the highest of (i) the Federal Funds Rate (as defined in the credit agreement) plus 0.5% , (ii) the prime rate publicly announced by Bank of America, N.A. and (iii) the Eurocurrency Rate plus 1.00% . Consolidated Interest Coverage Ratio is the ratio of (i) Consolidated EBIT (as defined in the credit agreement) for the four fiscal quarters most recently ended to (ii) Consolidated Interest Expense (as defined in the credit agreement) for such period (excluding all interest expense attributable to capitalized loan costs and the amount of fees paid in connection with the issuance of letters of credit on behalf of Quanta during such period). The credit agreement contains certain covenants, including (i) a maximum Consolidated Leverage Ratio of 3.0 to 1.0 (except that in connection with certain permitted acquisitions in excess of $200.0 million , such ratio is 3.5 to 1.0 for the fiscal quarter in which the acquisition is completed and the two subsequent fiscal quarters) and (ii) a minimum Consolidated Interest Coverage Ratio of 3.0 to 1.0. As of December 31, 2018 , Quanta was in compliance with all of the covenants under the credit agreement. Subject to certain exceptions, (i) all borrowings under the credit agreement are secured by substantially all the assets of Quanta and Quanta’s wholly owned U.S. subsidiaries and by a pledge of all of the capital stock of Quanta’s wholly owned U.S. subsidiaries and 65% of the capital stock of direct foreign subsidiaries of Quanta’s wholly owned U.S. subsidiaries and (ii) Quanta’s wholly owned U.S. subsidiaries guarantee the repayment of all amounts due under the credit agreement. Subject to certain conditions, all collateral will automatically be released from the liens at any time Quanta maintains an Investment Grade Rating (defined in the credit agreement as two of the following three conditions being met: (i) a corporate credit rating that is BBB- or higher by Standard & Poor’s Rating Services, (ii) a corporate family rating that is Baa3 or higher by Moody’s Investors Services, Inc. or (iii) a corporate credit rating that is BBB- or higher by Fitch Ratings, Inc.). The credit agreement also limits certain acquisitions, mergers and consolidations, indebtedness, asset sales and prepayments of indebtedness and, subject to certain exceptions, prohibits liens on Quanta’s assets. The credit agreement allows cash payments for dividends and stock repurchases subject to compliance with the following requirements (after giving effect to the dividend or stock repurchase): (i) no default or event of default under the credit agreement; (ii) continued compliance with the financial covenants in the credit agreement; and (iii) at least $100.0 million of availability under the revolving credit facility and/or cash and cash equivalents on hand. The credit agreement provides for customary events of default and contains cross-default provisions with Quanta’s underwriting, continuing indemnity and security agreement with its sureties and certain other debt instruments exceeding $150.0 million |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES: U.S. federal and state and foreign income tax laws and regulations are voluminous and are often ambiguous. As such, Quanta is required to make many subjective assumptions and judgments regarding its tax positions that could materially affect amounts recognized in its future consolidated balance sheets, consolidated statements of operations and consolidated statements of comprehensive income. For example, the Tax Act significantly revised the U.S. corporate tax regime, which, among other things, resulted in a reduction of Quanta’s future effective tax rate and a remeasurement of its deferred tax assets and liabilities. Quanta completed its analysis of the Tax Act within the prescribed one-year measurement period, and adjustments during the measurement period were included within “Net income” as an adjustment to “Provision for income taxes” on Quanta’s consolidated statement of operations. The measurement period adjustments are described in further detail below. The Tax Act lowered the U.S. federal corporate income tax rate from 35% to 21% effective January 1, 2018, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries, limited and eliminated certain tax deductions and created new taxes on certain foreign-sourced earnings. Consequently, for the year ended December 31, 2017, Quanta recorded one-time net tax benefits of $70.1 million , including $85.3 million of tax benefits associated with the remeasurement of U.S. federal deferred tax assets and liabilities based on expected future rates (generally 21%), partially offset by an estimated $15.2 million transition tax on post-1986 earnings and profits of certain foreign subsidiaries. This net tax benefit was Quanta’s provisional estimate, utilizing the information that was available at the time. As permitted by and in accordance with the guidance issued by the SEC and codified by the FASB, during the year ended December 31, 2018, Quanta recorded $6.3 million of additional benefit related to the remeasurement of U.S. federal deferred tax assets and liabilities, as the estimate of such amount was revised in connection with the preparation and filing of Quanta’s 2017 income tax returns. Additionally, as a result of the tax reform regulations issued during 2018, Quanta recorded a valuation allowance of $43.5 million against foreign tax credits. As of December 31, 2018, Quanta has completed its accounting for the tax effects of the enactment of the Tax Act; however, we continue to expect additional regulations that could have a material impact on Quanta’s effective tax rate in future periods. Further, to the extent there are settlements of certain foreign unrecognized tax benefits in future periods, changes to the estimates associated with the transition tax may be required. The Tax Act also imposed a tax on global intangible low-taxed income (GILTI). Quanta analyzed the impacts of GILTI and made an accounting policy election in the fourth quarter of 2018 whereby it determined that such income will be recognized in the period earned and will not recognize deferred taxes for basis differences that may reverse as GILTI in future years. For the year ended December 31, 2017, an additional one-time tax benefit of $26.7 million was recorded in connection with entity restructuring and recapitalization transactions completed by Quanta, which was partially offset by an $8.5 million decrease in the production activity-related tax benefit that resulted from acceleration of certain deductions into 2017. During the year ended December 31, 2018, the estimated benefit associated with entity restructuring and recapitalization transactions was decreased by $1.8 million based on actual 2017 earnings and profit balances. The components of income (loss) from continuing operations before income taxes were as follows (in thousands): Year Ended December 31, 2018 2017 2016 Income (loss) from continuing operations before income taxes: Domestic $ 318,635 $ 291,031 $ 349,959 Foreign 139,031 62,726 (42,273 ) Total $ 457,666 $ 353,757 $ 307,686 The components of the provision for income taxes for continuing operations were as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current: Federal $ 50,306 $ 44,695 $ 106,316 State 26,170 301 11,549 Foreign 23,209 22,666 5,076 Total current tax provision 99,685 67,662 122,941 Deferred: Federal 62,482 (36,915 ) (264 ) State (4,152 ) 14,951 (923 ) Foreign 3,644 (10,166 ) (14,508 ) Total deferred tax provision (benefit) 61,974 (32,130 ) (15,695 ) Total provision for income taxes from continuing operations $ 161,659 $ 35,532 $ 107,246 The actual income tax provision differed from the income tax provision computed by applying the U.S. federal statutory corporate rate to income from continuing operations before provision for income taxes as follows (in thousands): Year Ended December 31, 2018 2017 2016 Provision at the statutory rate $ 96,110 $ 123,815 $ 107,690 Increases (decreases) resulting from — Tax Cuts and Jobs Act (6,295 ) (70,129 ) — State taxes 18,504 17,920 6,479 Foreign taxes 2,734 (16,958 ) 1,860 Contingency reserves, net (2,619 ) 3,651 (13,540 ) Production activity deduction — (1,504 ) (8,586 ) Employee per diems, meals and entertainment 11,949 13,605 8,764 Taxes on unincorporated joint ventures (578 ) (1,354 ) (656 ) Asset impairments — — 1,909 Entity restructuring and recapitalization efforts (4,424 ) (26,668 ) — Equity compensation (1,449 ) (5,095 ) — Valuation allowance - Foreign Tax Credits 43,507 — — Other 4,220 (1,751 ) 3,326 Total provision for income taxes from continuing operations $ 161,659 $ 35,532 $ 107,246 Deferred income taxes result from temporary differences in the recognition of income and expenses for financial reporting purposes and tax purposes. The tax effects of these temporary differences, representing deferred tax assets and liabilities, result principally from the following (in thousands): December 31, 2018 2017 Deferred income tax liabilities: Property and equipment $ (178,090 ) $ (161,491 ) Goodwill (60,305 ) (49,407 ) Other intangibles (21,034 ) (26,676 ) Customer holdbacks (44,173 ) (36,218 ) Other book/tax accounting method differences (7,247 ) (17,967 ) Total deferred income tax liabilities (310,849 ) (291,759 ) Deferred income tax assets: Accruals and reserves 28,594 21,419 Stock and incentive compensation 20,627 17,676 Net operating loss carryforwards 52,406 62,925 Tax credits 43,572 48,516 Deferred profit on investment in unconsolidated affiliates 16,021 2,813 Other 15,054 4,747 Subtotal 176,274 158,096 Valuation allowance (67,601 ) (19,328 ) Total deferred income tax assets 108,673 138,768 Total net deferred income tax liabilities $ (202,176 ) $ (152,991 ) The net deferred income tax assets and liabilities were comprised of the following in the accompanying consolidated balance sheets (in thousands): December 31, 2018 2017 Deferred income taxes: Assets $ 16,939 $ 26,390 Liabilities (219,115 ) (179,381 ) Total net deferred income tax liabilities $ (202,176 ) $ (152,991 ) The valuation allowance for deferred income tax assets at December 31, 2018 , 2017 and 2016 was $67.6 million , $19.3 million and $15.0 million , respectively. These valuation allowances relate to state and foreign net operating loss carryforwards and foreign tax credits. The net change in the total valuation allowance for each of the years ended December 31, 2018 , 2017 and 2016 was an increase of $48.3 million , an increase of $4.3 million and a decrease of $1.1 million , respectively. The valuation allowance was established primarily as a result of uncertainty in Quanta’s outlook as to the amount and character of future taxable income in particular tax jurisdictions. Quanta believes it is more likely than not that it will realize the benefit of its deferred tax assets net of existing valuation allowances. At December 31, 2018 , Quanta had state and foreign net operating loss carryforwards, the tax effect of which was $57.1 million . These carryforwards will expire as follows: 2019 , $0.2 million ; 2020 , $1.7 million ; 2021 , $0.5 million ; 2022 , $0.2 million ; 2023 , $1.3 million and $53.2 million thereafter. A valuation allowance of $21.9 million has been recorded against certain foreign and state net operating loss carryforwards. Quanta generally does not provide for taxes related to undistributed earnings of its foreign subsidiaries because such earnings either would not be taxable when remitted or they are considered to be indefinitely reinvested. Quanta could also be subject to additional foreign withholding taxes if it were to repatriate cash that is indefinitely reinvested outside the United States, but it does not expect such amount to be material. A reconciliation of unrecognized tax benefit balances is as follows (in thousands): December 31, 2018 2017 2016 Balance at beginning of year $ 36,229 $ 35,240 $ 54,541 Additions based on tax positions related to the current year 6,231 7,040 4,227 Additions for tax positions of prior years 9,377 3,372 2,048 Reductions for tax positions of prior years (2,870 ) (1,171 ) (1,948 ) Reductions for audit settlements — — (180 ) Reductions resulting from a lapse of the applicable statute of limitations periods (7,857 ) (8,252 ) (23,448 ) Balance at end of year $ 41,110 $ 36,229 $ 35,240 For the year ended December 31, 2018 , the $7.9 million reduction was primarily due to the expiration of certain federal and state statute of limitations periods for the 2014 tax year. For the year ended December 31, 2017 , the $8.3 million reduction was primarily due to the expiration of certain federal and state statute of limitations periods for the 2010 through 2012 tax years. For the year ended December 31, 2016 , the $23.4 million reduction was primarily due to the expiration of certain federal and state statute of limitations periods for the 2004 tax year. The balances of unrecognized tax benefits, the amount of related interest and penalties and what Quanta believes to be the range of reasonably possible changes in the next 12 months are as follows (in thousands): December 31, 2018 2017 2016 Unrecognized tax benefits $ 41,110 $ 36,229 $ 35,240 Portion that, if recognized, would reduce tax expense and effective tax rate 40,977 35,561 33,128 Accrued interest on unrecognized tax benefits 5,459 5,368 5,539 Accrued penalties on unrecognized tax benefits 631 631 650 Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months $0 to $9,541 $0 to $13,655 $0 to $12,332 Portion that, if recognized, would reduce tax expense and effective tax rate $0 to $8,224 $0 to $12,483 $0 to $10,983 Quanta classifies interest and penalties within the provision for income taxes. Quanta recognized interest expense of $0.1 million , interest income of $0.2 million and interest income of $3.2 million in the provision for income taxes for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Equity | EQUITY: Exchangeable Shares and Preferred Stock In connection with certain prior acquisitions of Canadian businesses, the former owners of the acquired businesses received exchangeable shares of certain Canadian subsidiaries of Quanta, which may be exchanged at the option of the holders for Quanta common stock on a one -for-one basis. The holders of exchangeable shares can make an exchange only once in any calendar quarter and must exchange a minimum of either 50,000 shares or, if less, the total number of remaining exchangeable shares registered in the name of the holder making the request. Additionally, in connection with two of such acquisitions, Quanta issued one share of Quanta Series F preferred stock and one share of Quanta Series G preferred stock to voting trusts on behalf of the respective holders of the exchangeable shares issued in such acquisitions, which provided such holders with voting rights in Quanta common stock equivalent to the number of exchangeable shares outstanding. The share of Series F preferred stock was redeemed and retired effective October 6, 2017. All holders of exchangeable shares have rights equivalent to Quanta common stockholders with respect to dividends and other economic rights. During 2017 and 2016 , 6.0 million and 0.4 million exchangeable shares were exchanged for Quanta common stock. As of December 31, 2018 , the Quanta Series G preferred stock remained outstanding and 0.5 million exchangeable shares remained outstanding, of which 0.4 million were associated with the Quanta Series G preferred stock. On January 1, 2019, 0.4 million exchangeable shares were exchanged for Quanta common stock, and the share of Series G preferred stock was redeemed and retired. Treasury Stock General Treasury stock is recorded at cost. Under Delaware corporate law, treasury stock is not counted for quorum purposes or entitled to vote. Shares withheld for tax withholding obligations The tax withholding obligations of employees upon vesting of restricted stock, RSUs and performance units settled in common stock are typically satisfied by Quanta making such tax payments and withholding the number of vested shares having a value on the date of vesting equal to the tax withholding obligation. For the settlement of these employee tax liabilities, Quanta withheld 0.4 million shares of Quanta common stock during the year ended December 31, 2018 , which had a total market value of $15.2 million , 0.5 million shares of Quanta common stock during the year ended December 31, 2017 , which had a total market value of $18.6 million , and 0.4 million shares of Quanta common stock during the year ended December 31, 2016 , which had a total market value of $8.3 million . These shares and the related costs to acquire them were accounted for as adjustments to the balance of treasury stock. Notional amounts recorded related to deferred compensation plans For RSUs and performance units that vest but the settlement of which is deferred under Quanta’s deferred compensation plans, Quanta records a notional amount to “Treasury stock” and an offsetting amount to “Additional paid-in capital” (APIC). However, the only shares added to outstanding treasury stock at vesting are shares withheld for tax liabilities other than income taxes, as the shares of Quanta common stock associated with deferred equity awards are not issued. Upon settlement of the deferred equity awards and issuance of the associated Quanta common stock, the original accounting entry is reversed. The amounts recorded to treasury stock related to the deferred compensation plans during the years ended December 31, 2018 , 2017 and 2016 were $2.5 million , $2.6 million and $6.8 million , respectively. Retirement of Treasury Stock Effective December 1, 2016 , Quanta retired 84.8 million shares of treasury stock. These retired shares were restored to the status of authorized and unissued shares as permitted by Delaware law. The retired stock had a carrying amount of $1.95 billion . In accordance with Quanta’s policy, Quanta recorded the formal retirement of treasury stock by deducting the par value from common stock and the excess of cost over par value from APIC. Stock repurchases During the second quarter of 2017, Quanta’s Board of Directors approved a stock repurchase program that authorized Quanta to purchase, from time to time through June 30, 2020, up to $300.0 million of its outstanding common stock (the 2017 Repurchase Program). During the third quarter of 2018, Quanta’s Board of Directors approved an additional stock repurchase program that authorizes Quanta to purchase, from time to time through June 30, 2021, up to $500.0 million of its outstanding common stock (the 2018 Repurchase Program). Repurchases under these programs can be made in open market and privately negotiated transactions. During the years ended December 31, 2018 and 2017, Quanta repurchased 13.9 million shares of its common stock in the open market at a cost of $451.3 million and 1.4 million shares of its common stock in the open market at a cost of $50.0 million . Quanta’s policy is to record a stock repurchase as of the trade date; however, the payment of cash related to the repurchase is made on the settlement date of the trade. As a result of this policy, during the years ended December 31, 2018 and 2017, cash payments related to stock repurchases were $443.2 million and $50.0 million . At December 31, 2018 , $298.7 million remained under the 2018 Repurchase Program. During the second quarter of 2016, Quanta received 9.4 million shares of its common stock upon completion of an accelerated share repurchase arrangement that was executed under a prior repurchase program. The cash for such shares was paid in 2015. Non-controlling Interests Quanta holds interests in various entities through both joint venture entities that provide infrastructure services under specific customer contracts, either directly or through subcontracting relationships, and other equity investments in partially owned entities that own and operate certain infrastructure assets, including investments that may be entered into through the partnership structure Quanta has formed with certain infrastructure investors. Quanta has determined that certain of these joint ventures where Quanta provides the majority of the infrastructure services, which management believes most significantly influences the economic performance of such joint ventures, are VIEs. Management has concluded that Quanta is the primary beneficiary of these joint ventures and has accounted for each on a consolidated basis. The other parties’ equity interests in these joint ventures have been accounted for as “Non-controlling interests” in Quanta’s consolidated balance sheets. Net income attributable to the other participants in the amounts of $2.7 million , $3.2 million and $1.7 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, has been accounted for as a reduction of net income in deriving “Net income attributable to common stock” in Quanta’s consolidated statements of operations. The carrying amount of the investments held by Quanta in all of its VIEs was $9.6 million and $7.8 million at December 31, 2018 and 2017 . The carrying amount of investments held by the non-controlling interests in these VIEs at December 31, 2018 and 2017 was $1.3 million and $4.1 million . During the years ended December 31, 2018 , 2017 and 2016 , net distributions to non-controlling interests were $4.0 million , $2.0 million and $0.8 million . There were also discharges of notes receivable from a joint venture partner of $1.4 million and $0.5 million , which were accounted for as a “Buyout of a non-controlling interest” in the accompanying consolidated statements of equity for the years ended December 31, 2018 and 2017. There were no other changes in equity as a result of transfers to/from the non-controlling interests during the years ended December 31, 2018 , 2017 and 2016 . See Note 14 for further disclosures related to Quanta’s joint venture arrangements. Dividends On December 6, 2018, Quanta’s Board of Directors declared an initial cash dividend of $0.04 per share of its common stock, payable in the first quarter of 2019 to stockholders of record as of January 2, 2019. The declaration, payment and amount of future cash dividends will be at the discretion of Quanta’s Board of Directors after taking into account various factors, including Quanta’s financial condition, results of operations, cash flows from operations, current and anticipated capital requirements and expansion plans, the income tax laws then in effect and the requirements of Delaware law. In addition, as discussed in Note 8 , |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | EQUITY-BASED COMPENSATION: Stock Incentive Plans On May 19, 2011, Quanta’s stockholders approved the 2011 Omnibus Equity Incentive Plan (the 2011 Plan). The 2011 Plan provides for the award of non-qualified stock options, incentive (qualified) stock options, stock appreciation rights, restricted stock, RSUs, stock bonus awards, performance compensation awards (including performance units and cash bonus awards) or any combination of the foregoing. The purpose of the 2011 Plan is to attract and retain key personnel and provide participants with additional performance incentives by increasing their proprietary interest in Quanta. Employees, directors, officers, consultants or advisors of Quanta or its affiliates are eligible to participate in the 2011 Plan, as are prospective employees, directors, officers, consultants or advisors of Quanta who have agreed to serve Quanta in those capacities. An aggregate of 13,300,000 shares of Quanta common stock may be issued pursuant to awards granted under the 2011 Plan. The 2011 Plan is administered by the Compensation Committee of the Board of Directors of Quanta. The Compensation Committee has, subject to applicable regulation and the terms of the 2011 Plan, the authority to grant awards under the 2011 Plan, to construe and interpret the 2011 Plan and to make all other determinations and take any and all actions necessary or advisable for the administration of the 2011 Plan. The Board also delegated to the Equity Grant Committee, a committee of the Board consisting of one or more directors, the authority to grant limited awards to eligible persons who are not executive officers or non-employee directors. Restricted Stock and RSUs to be Settled in Common Stock During the years ended December 31, 2018 , 2017 and 2016 , Quanta granted 1.6 million , 1.5 million and 1.8 million shares of RSUs to be settled in common stock under the 2011 Plan with weighted average grant date fair values of $34.37 , $37.06 and $22.22 per share, respectively. The grant date fair value for RSUs to be settled in common stock is based on the market value of Quanta common stock on the date of grant. RSU awards to be settled in common stock are subject to forfeiture, restrictions on transfer and certain other conditions until vesting, which generally occurs in equal installments over a two -year, three -year or five -year period following the date of grant. Holders of RSUs to be settled in common stock are entitled to receive a cash dividend equivalent payment equal to any cash dividend payable on account of common shares. During the years ended December 31, 2018 , 2017 and 2016 , vesting activity consisted of 1.4 million , 1.5 million and 1.4 million shares of restricted stock and RSUs settled in common stock with an approximate fair value at the time of vesting of $48.6 million , $55.6 million and $28.9 million , respectively. A summary of the activity for RSUs to be settled in common stock for the year ended December 31, 2018 is as follows (shares in thousands): Shares Weighted Average Grant Date Fair Value (Per share) Unvested at December 31, 2017 2,600 $30.42 Granted 1,625 $34.37 Vested (1,370 ) $28.88 Forfeited (221 ) $32.27 Unvested at December 31, 2018 2,634 $33.50 During the years ended December 31, 2018 , 2017 and 2016 , Quanta recognized $43.9 million , $41.0 million and $39.6 million of non-cash stock compensation expense related to restricted stock and RSUs to be settled in common stock. Such expense is recorded in “Selling, general and administrative expenses.” As of December 31, 2018 , there was $45.5 million of total unrecognized compensation expense related to unvested RSUs to be settled in common stock granted to both employees and non-employees. This cost is expected to be recognized over a weighted average period of 2.24 years . Performance Units to be Settled in Common Stock Performance units awarded pursuant to the 2011 Plan provide for the issuance of shares of common stock upon vesting. These performance units cliff-vest at the end of a three -year performance period based on achievement of certain performance metrics established by Quanta’s compensation committee, including company performance goals and, with respect to certain awards, Quanta’s total shareholder return as compared to a predetermined group of peer companies. The final number of shares of common stock issuable upon vesting of performance units can range from 0% to 200% of the number of performance units initially granted, depending on the level of achievement, as determined by Quanta’s compensation committee. During each of the years ended December 31, 2018 , 2017 and 2016 , Quanta granted 0.3 million of performance units to be settled in common stock under the 2011 Plan with a weighted average grant date fair value of $12.24 , $17.63 and $22.86 per unit. The grant date fair values for awards of performance units with market-based metrics, which were granted in the years ended December 31, 2018 and 2017 , were determined using a Monte Carlo simulation valuation methodology using the following key inputs: 2018 2017 Valuation date stock price based on the February 28, 2018 and March 22, 2017 closing stock prices $34.44 $36.31 Expected volatility 34 % 36 % Risk-free interest rate 2.39 % 1.46 % Term in years 2.84 2.78 Quanta recognizes expense related to performance units with market-based metrics based on the probability of achievement of the underlying performance metrics, multiplied by the portion of the three -year period that has expired and the fair value of the total number of shares of common stock that Quanta anticipates will be issued based on such achievement. Quanta recognizes expense related to performance units without market-based metrics based on the portion of the three -year period that has expired multiplied by the fair value of the total number of shares of common stock that Quanta anticipates will be issued. During the years ended December 31, 2018 , 2017 and 2016 , Quanta recognized $8.6 million , $5.4 million and $3.2 million in compensation expense associated with performance units. Such expense is recorded in “Selling, general and administrative expenses.” During the years ended December 31, 2018 and 2017 , 0.1 million performance units vested, and 0.1 million shares of common stock were issued in connection with performance units. During the year ended December 31, 2016 , no performance units vested, and no shares of common stock were issued in connection with performance units. RSUs to be Settled in Cash Certain RSUs granted by Quanta under the 2011 Plan are settled solely in cash. These cash-settled RSUs are intended to provide plan participants with cash performance incentives that are substantially equivalent to the risks and rewards of equity ownership in Quanta, typically vest in equal installments over a two -year or three -year period following the date of grant, and are subject to forfeiture under certain conditions, primarily termination of service. Additionally, subject to certain restrictions, Quanta’s non-employee directors may elect to settle a portion of their RSU awards in cash. For RSUs settled in cash, the holders receive for each vested RSU an amount in cash equal to the fair market value of one share of Quanta common stock on the settlement date, as specified in the applicable award agreement. Compensation expense related to RSUs to be settled in cash was $5.0 million , $8.1 million and $7.0 million for the years ended December 31, 2018 , 2017 and 2016 . Such expense is recorded in “Selling, general and administrative expenses.” RSUs that are anticipated to be settled in cash are not included in the calculation of earnings per share, and the estimated earned value of such RSUs is classified as a liability. Quanta paid $5.9 million , $8.6 million and $4.6 million to settle liabilities related to cash-settled RSUs in the years ended December 31, 2018 , 2017 and 2016 , respectively. Accrued liabilities for the estimated earned value of outstanding RSUs to be settled in cash were $3.4 million and $4.6 million at December 31, 2018 and 2017 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS: Unions’ Multiemployer Pension Plans Quanta contributes to a number of multiemployer defined benefit pension plans under the terms of collective bargaining agreements with various unions that represent certain of Quanta’s employees. Quanta’s multiemployer pension plan contribution rates generally are specified in the collective bargaining agreements (usually on an annual basis), and contributions are made to the plans on a “pay-as-you-go” basis based on its union employee payrolls. Quanta may also have additional liabilities imposed by law as a result of its participation in multiemployer defined benefit pension plans. The Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980, imposes certain liabilities upon an employer who is a contributor to a multiemployer pension plan if the employer withdraws from the plan or the plan is terminated or experiences a mass withdrawal. The Pension Protection Act of 2006 (PPA) also added special funding and operational rules generally applicable to plan years beginning after 2007 for multiemployer plans in the United States that are classified as “endangered,” “seriously endangered” or “critical” status based on multiple factors (including, for example, the plan’s funded percentage, cash flow position and whether it is projected to experience a minimum funding deficiency). Plans in these classifications must adopt measures to improve their funded status through a funding improvement or rehabilitation plan, as applicable, which may require additional contributions from employers (which may take the form of a surcharge on benefit contributions) and/or modifications to retiree benefits. Certain plans to which Quanta contributes or may contribute in the future are in “endangered,” “seriously endangered” or “critical” status. The amount of additional funds, if any, that Quanta may be obligated to contribute to these plans in the future cannot be estimated due to uncertainty of the future levels of work that require the specific use of union employees covered by these plans, as well as the future contribution levels and possible surcharges on contributions applicable to these plans. The following table summarizes plan information relating to Quanta’s participation in multiemployer defined benefit pension plans, including company contributions for the last three years, the status under the PPA of the plans and whether the plans are subject to a funding improvement or rehabilitation plan or contribution surcharges. The most recent PPA zone status available in 2018 and 2017 relates to the plan’s fiscal year-end in 2017 and 2016 . Forms 5500 were not yet available for the plan years ending in 2018 . The PPA zone status is based on information that Quanta received from the respective plans, as well as publicly available information on the U.S. Department of Labor website, and is certified by the plan’s actuary. Although multiple factors or tests may result in red zone or yellow zone status, plans in the red zone generally are less than 65 percent funded, plans in the yellow zone generally are less than 80 percent funded, and plans in the green zone generally are at least 80 percent funded. Under the PPA, red zone plans are classified as “critical” status, yellow zone plans are classified as “endangered” status and green zone plans are classified as neither “endangered” nor “critical” status. The “Subject to Financial Improvement/ Rehabilitation Plan” column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented. The last column lists the expiration dates of Quanta’s collective-bargaining agreements to which the plans are subject. Total contributions to these plans correspond to the number of union employees employed at any given time and the plans in which they participate and vary depending upon the location and number of ongoing projects at a given time and the need for union resources in connection with such projects. Information has been presented separately for individually significant plans, based on PPA funding status classification, and in the aggregate for all other plans. Employee Identification Number/ Pension Plan Number PPA Zone Status Subject to Financial Improve- ment/ Reha- bilitation Plan Contributions (in thousands) Sur-charge Imposed Expiration Date of Collective Bargaining Agreement Fund 2018 2017 2018 2017 2016 National Electrical Benefit Fund 53-0181657-001 Green Green No $ 35,399 $ 29,161 $ 22,912 No Varies through May 2022 Pipeline Industry Pension Fund 73-6146433-001 Green Green No 10,132 13,585 6,954 No Varies through May 2020 Central Pension Fund of the IUOE & Participating Employers 36-6052390-001 Green Green No 9,246 12,176 5,668 No Varies through December 2020 Laborers Pension Trust Fund for Northern California 94-6277608-001 Yellow Yellow Yes 3,652 3,387 3,805 Yes Varies through May 2020 International Union of Operating Engineers Local 132 Pension Fund 55-6015364-001 Green Green No 3,367 222 42 No May 2020 Eighth District Electrical Pension Fund 84-6100393-001 Green Green No 3,332 3,208 3,089 No Varies through December 2020 West Virginia Laborers Pension Trust Fund 55-6026775-001 Green Green No 3,321 509 129 No May 2020 Teamsters National Pipe Line Pension Plan 46-1102851-001 Green Green No 3,318 3,602 1,661 No Varies through December 2020 Plumbers and Pipefitters National Pension Fund 52-6152779-001 Yellow Yellow No 2,734 1,273 1,666 No Varies through March 2021 Locals 302 & 612 of the IUOE-Employers Construction Industry Retirement Plan 91-6028571-001 Green Green No 2,620 2,194 2,269 No May 2021 Operating Engineers Local 324 Pension Fund 38-1900637-001 Red Red Yes 2,310 1,969 1,291 Yes Varies through December 2020 Alaska Electrical Pension Plan 92-6005171-001 Green Green No 2,287 2,143 2,701 No Varies through December 2019 Laborers National Pension Fund 75-1280827-001 Red Green Yes 2,051 3,049 1,358 Yes Varies through December 2020 OE Pension Trust Fund 94-6090764-001 Red Red Yes 1,922 1,703 1,508 Yes Varies through June 2020 Employer-Teamsters Local Nos 175 & 505 Pension Trust Fund 55-6021850-001 Red Red Yes 1,209 50 — Yes May 2020 Laborers District Council of W PA Pension Fund 25-6135576-001 Red Red Yes 1,029 418 876 Yes May 2020 Alaska Laborers - Employers Retirement Fund 91-6028298-001 Yellow Yellow Yes 411 536 1,216 No December 2018 Alaska Teamster Employer Pension Plan 92-6003463-024 Red Red Yes 197 255 659 No December 2018 All other plans - U.S. 29,136 21,365 26,869 All other plans - Canada (1) 8,518 9,277 562 Total $ 126,191 $ 110,082 $ 85,235 (1) Multiemployer defined benefit pension plans in Canada are not subject to the reporting requirements under the PPA. Accordingly, certain information was not publicly available. Quanta’s contributions to the following individually significant plans were five percent or more of the total contributions to these plans for the periods indicated based on the Forms 5500 for these plans for the years ended December 31, 2017 and 2016 . Forms 5500 were not yet available for these plans for the year ended December 31, 2018 . Pension Fund Plan Years in which Quanta Contributions Were Five Percent or More of Total Plan Contributions Pipeline Industry Pension Fund 2017 and 2016 Eighth District Electrical Pension Fund 2017 and 2016 Teamsters National Pipe Line Pension Plan 2017 and 2016 Local 697 IBEW and Electrical Industry Pension Fund 2017 and 2016 IBEW Local 456 Pension Plan 2017 and 2016 National Electrical Benefit Fund 2017 Local Union 400 IBEW Pension Plan 2017 IBEW 648 Pension Plan 2017 Laborers Local 57 Industrial Pension Plan 2017 Local Union No. 9 IBEW and Outside Contractors Pension Fund 2016 Alaska Plumbing and Pipefitting Industry Pension Fund 2016 Alaska Electrical Pension Plan 2016 Michigan Electrical Employees’ Pension Plan 2016 In addition to the contributions made to multiemployer defined benefit pension plans noted above, Quanta also contributed to multiemployer defined contribution or other benefit plans on behalf of certain union employees. Contributions to union multiemployer defined contribution or other benefit plans by Quanta were $174.7 million , $171.4 million and $139.3 million for the years ended December 31, 2018 , 2017 and 2016 . Total contributions made to all of these multiemployer plans for the years ended December 31, 2018 , 2017 and 2016 correspond to the number of union employees employed at any given time and the plans in which they participate and vary depending upon the location and number of ongoing projects at a given time and the need for union resources in connection with such projects. Quanta 401(k) Plan Quanta maintains a 401(k) plan pursuant to which employees who are not provided retirement benefits through a collective bargaining agreement may make contributions through a payroll deduction. Quanta makes matching cash contributions of 100% of each employee’s contribution up to 3% of that employee’s salary and 50% of each employee’s contribution between 3% and 6% of such employee’s salary, up to the maximum amount permitted by law. Contributions to the 401(k) plan by Quanta were $33.4 million , $26.3 million and $21.9 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Deferred Compensation Plans Quanta maintains nonqualified deferred compensation plans pursuant to which non-employee directors and certain key employees, independent contractors and consultants may defer receipt of some or all of their cash compensation and/or settlement of their equity-based awards, subject to certain limitations. These plans are unfunded and unsecured compensation arrangements. Individuals participating in these plans may allocate deferred cash amounts among a group of notional accounts that mirror the gains and losses of various investment alternatives. Generally, participants receive distributions of deferred balances based on predetermined payout schedules or other events. The plan covering key employees provides for employer matching contributions for certain officers and employees whose benefits under the 401(k) plan are limited by federal tax law. Quanta may also make discretionary employer contributions to that plan. Matching contributions vest immediately and discretionary employer contributions are subject to a vesting schedule determined at the time of the contribution, provided that vesting accelerates upon a change in control and the participant’s death or retirement. All matching and discretionary employer contributions, whether vested or not, are forfeited upon a participant’s termination of employment for cause or upon the participant engaging in competition with Quanta or any of its affiliates. Quanta made contributions to the eligible participants’ accounts under the deferred compensation plans of $1.1 million , $1.1 million and $1.0 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. At December 31, 2018 and 2017 , obligations under these plans, including amounts contributed by Quanta, were $33.4 million and $30.1 million and were included in “Insurance and other non-current liabilities” in the accompanying consolidated balance sheets. Quanta maintains investments to provide for future obligations related to these deferred compensation plans. At December 31, 2018 and 2017, these investments were primarily comprised of company-owned life insurance policies, had fair market values of $33.5 million and $28.7 million |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS: Certain of Quanta’s operating units have entered into related party lease arrangements for operational facilities, typically with prior owners of certain acquired businesses. These lease agreements generally have terms of up to approximately 5 years and include renewal options. Related party lease expense for the years ended December 31, 2018 , 2017 and 2016 was $14.0 million , $12.3 million and $8.7 million |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES: Investments in Affiliates and Other Entities As described in Note 10, Quanta holds investments in various entities, including joint venture entities that provide infrastructure services under specific customer contracts and partially owned entities that own and operate certain infrastructure assets constructed by Quanta. Losses incurred by these entities are generally shared ratably based on the percentage ownership of the participants in these structures. However, in Quanta’s joint venture structures that provide infrastructure services, each participant is typically jointly and severally liable for all of the obligations of the joint venture entity pursuant to the contract with the customer, as a general partner or through a parent guarantee and, therefore, can be liable for full performance of the contract with the customer. In circumstances where Quanta’s participation in a joint venture qualifies as a general partnership, the joint venture partners are jointly and severally liable for all of the obligations of the joint venture, including obligations owed to the customer or any other person or entity. Quanta is not aware of circumstances that would lead to future claims against it for material amounts in connection with these joint and several liabilities. Additionally, in the joint venture structures entered into by Quanta, typically each party indemnifies the other party for any liabilities incurred in excess of the liabilities such other party is obligated to bear under the respective joint venture agreement or in accordance with the scope of work subcontracted to each party. It is possible, however, that Quanta could be required to pay or perform obligations in excess of its share if the other party is unable or refuses to pay or perform its share of the obligations. Quanta is not aware of circumstances that would lead to future claims against it for material amounts that would not be indemnified. As described in Note 2, Quanta has also formed a partnership with select infrastructure investors that provides up to $1.0 billion of capital, including approximately $80.0 million from Quanta, available to invest in certain specified infrastructure projects through August 2024. Additionally, as of December 31, 2018 , Quanta had outstanding capital commitments associated with investments in unconsolidated affiliates related to planned oil and gas infrastructure projects of $14.8 million , of which $14.1 million is expected to be paid in 2019. The remaining $0.7 million of these capital commitments is anticipated to be paid by May 31, 2022. During 2014, a limited partnership in which Quanta is a partner was selected for an engineering, procurement and construction (EPC) electric transmission project in Canada to construct approximately 500 kilometers of transmission line and two 500 kV substations. A subsidiary of Quanta, engaged by the limited partnership, is contracted to provide turnkey EPC services for the entire project. As of December 31, 2018 , Quanta made aggregate contributions to this unconsolidated affiliate of $76.2 million , received $59.3 million as a return of capital and had outstanding additional capital commitments associated with this project of $8.6 million , which are anticipated to be paid in 2019. Leases Quanta leases certain land, buildings and equipment under non-cancelable lease agreements, including related party leases as discussed in Note 13. The terms of these agreements vary from lease to lease, and certain leases include renewal options and escalation clauses. Quanta may decide to cancel or terminate a lease before the end of its term, in which case it is typically liable to the lessor for the remaining lease payments under the term of the lease. The following schedule shows the future minimum lease payments under these operating leases as of December 31, 2018 (in thousands): Year Ending December 31: 2019 $ 124,530 2020 81,189 2021 55,827 2022 34,337 2023 21,450 Thereafter 37,217 Total minimum lease payments $ 354,550 Rent expense related to operating leases was $309.7 million , $276.2 million and $242.3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Quanta has guaranteed the residual value on certain of its equipment operating leases, agreeing to pay any difference between this residual value and the fair market value of the underlying asset at the date of termination of such leases. At December 31, 2018 , the maximum guaranteed residual value was $665.9 million . Quanta believes that no significant payments will be made as a result of the difference between the fair market value of the leased equipment and the guaranteed residual value; however, there can be no assurance that significant payments will not be required in the future. Contingent Consideration Liabilities As discussed in further detail in Note 2, Quanta is obligated to pay contingent consideration amounts to the former owners of certain acquired businesses in the event that such acquired businesses achieve specified performance objectives. As of December 31, 2018 and 2017 , the estimated fair value of Quanta’s contingent consideration liabilities totaled $70.8 million and $65.7 million . Committed Expenditures Quanta has capital commitments for the expansion of its vehicle fleet in order to accommodate manufacturer lead times on certain types of vehicles. As of December 31, 2018 , Quanta had issued $7.8 million of production orders with expected delivery dates in 2019 . Although Quanta has committed to purchase these vehicles at the time of their delivery, Quanta anticipates that the majority of these orders will be assigned to third party leasing companies and made available to Quanta under certain of its master equipment lease agreements, thereby releasing Quanta from its capital commitments. Legal Proceedings Quanta is from time to time party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract and/or property damages, employment-related damages, punitive damages, civil penalties or other losses, or injunctive or declaratory relief. With respect to all such lawsuits, claims and proceedings, Quanta records a reserve when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In addition, Quanta discloses matters for which management believes a material loss is at least reasonably possible. Except as otherwise stated below, none of these proceedings are expected to have a material adverse effect on Quanta’s consolidated financial position, results of operations or cash flows. In all instances, management has assessed the matter based on current information and made a judgment concerning its potential outcome, giving due consideration to the nature of the claim, the amount and nature of damages sought and the probability of success. Management’s judgment may prove materially inaccurate, and such judgment is made subject to the known uncertainties of litigation. Maurepas Project Dispute . During the third quarter of 2017, Maurepas Pipeline, LLC (Maurepas) notified QPS Engineering, LLC (QPS), a subsidiary of Quanta, of Maurepas’ assertion of a claim for liquidated damages allegedly arising from delay in mechanical completion of a project in Louisiana. Quanta disputes the claim and believes that QPS is not responsible for liquidated damages under the contract terms. The matter remains subject to contractual dispute resolution measures; however, either party may choose to institute a formal legal proceeding upon completion of such measures. If, upon final resolution of this matter, Quanta is unsuccessful, any such liquidated damages would be recorded as additional costs on the project. As of December 31, 2018, Quanta had recorded an accrual with respect to this matter based on the current estimated amount of probable loss and believes that the range of any additional reasonably possible loss would be the difference between the accrued amount and $22.0 million , which is the maximum liability for liquidated damages pursuant to the contract terms. In July and August 2018, Quanta also received notice from Maurepas claiming certain warranty defects on the project. Quanta is evaluating the claimed defects, and based on information currently available, no estimate of reasonably possible loss related to the warranty claim can be determined. Lorenzo Benton v. Telecom Network Specialists, Inc., et al. In June 2006, plaintiff Lorenzo Benton filed a class action complaint in the Superior Court of California, County of Los Angeles, alleging various wage and hour violations against Telecom Network Specialists (TNS), a former subsidiary of Quanta. Quanta retained liability associated with this matter pursuant to the terms of Quanta’s sale of TNS in December 2012. Benton represents a class of workers that includes all persons who worked on certain TNS projects, including individuals that TNS retained through numerous staffing agencies. The plaintiff class in this matter is seeking damages for unpaid wages, penalties associated with the failure to provide meal and rest periods and overtime wages, interest and attorneys’ fees. In January 2017, the trial court granted a summary judgment motion filed by the plaintiff class and found that TNS was a joint employer of the class members and that it failed to provide adequate meal and rest breaks and failed to pay overtime wages. In February 2019, the court granted, in part, the plaintiff class's final motion for summary judgment on damages, awarding the class approximately $7.5 million for its meal/rest break and overtime claims, and denied the motion as to penalties. Quanta believes the court’s decisions on liability and damages are not supported by controlling law and continues to contest its liability and the damage calculation asserted by the plaintiff class in this matter. Additionally, in November 2007, TNS filed cross complaints for indemnity and breach of contract against the staffing agencies, which employed many of the individuals in question. In December 2012, the trial court heard cross-motions for summary judgment filed by TNS and the staffing agencies pertaining to TNS’s demand for indemnity. The court denied TNS’s motion and granted the motions filed by the staffing agencies; however, the California Appellate Court reversed the trial court’s decision in part and instructed the trial court to reconsider its ruling. In February 2017, the court denied a new motion for summary judgment filed by the staffing companies and has since stated that the staffing companies would be liable to TNS for any damages owed to the class members that the staffing companies employed. The final amount of liability, if any, payable in connection with this matter remains the subject of pending litigation and will ultimately depend on various factors, including the outcome of Quanta’s appeal of the trial court’s rulings on liability and damages, the final determination with respect to any additional damages owed by Quanta, and the solvency of the staffing agencies. Based on review and analysis of the trial court’s rulings on liability, Quanta does not believe, at this time, that it is probable this matter will result in a material loss. However, if Quanta is unsuccessful in this litigation and the staffing agencies are unable to fund damages owed to class members, Quanta believes the range of reasonably possible loss to Quanta upon final resolution of this matter could be up to approximately $11.0 million , plus attorneys’ fees and expenses of the plaintiff class. Concentrations of Credit Risk Quanta is subject to concentrations of credit risk related primarily to its cash and cash equivalents and its net receivable position with customers, which includes amounts related to billed and unbilled accounts receivable and contract assets net of advanced billings with the same customer. Substantially all of Quanta’s cash and cash equivalents are managed by what it believes to be high credit quality financial institutions. In accordance with Quanta’s investment policies, these institutions are authorized to invest cash and cash equivalents in a diversified portfolio of what Quanta believes to be high quality cash and cash equivalent investments, which consist primarily of interest-bearing demand deposits, money market investments and money market mutual funds. Although Quanta does not currently believe the principal amount of these cash and cash equivalents is subject to any material risk of loss, changes in economic conditions could impact the interest income Quanta receives from these investments. In addition, Quanta grants credit under normal payment terms, generally without collateral, to its customers, which include electric power and energy companies, governmental entities, general contractors, and builders, owners and managers of commercial and industrial properties located primarily in the United States, Canada, Australia and Latin America. Consequently, Quanta is subject to potential credit risk related to changes in business and economic factors throughout these locations, which may be heightened as a result of uncertain economic and financial market conditions that have existed in recent years. However, Quanta generally has certain statutory lien rights with respect to services provided. Some of Quanta’s customers have experienced significant financial difficulties (including bankruptcy), and customers may experience financial difficulties in the future. These difficulties expose Quanta to increased risk related to collectability of billed and unbilled receivables and contract assets for services Quanta has performed. In January 2019, PG&E Corporation and Pacific Gas and Electric Company (collectively PG&E), one of Quanta’s largest customers, filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code, as amended. See Note 18 for information related to the PG&E bankruptcy. At December 31, 2018 or 2017 , no customer represented 10% or more of Quanta’s consolidated net receivable position. No customer represented 10% or more of Quanta’s consolidated revenues for the years ended December 31, 2018 , 2017 or 2016 . Insurance As discussed in Note 2, Quanta is insured for employer’s liability, workers’ compensation, auto liability, general liability and group health claims. As of December 31, 2018 and 2017 , the gross amount accrued for insurance claims totaled $272.9 million and $254.7 million , with $210.1 million and $200.0 million considered to be long term and included in “Insurance and other non-current liabilities.” Related insurance recoveries/receivables as of December 31, 2018 and 2017 were $56.5 million and $50.4 million , of which $0.3 million and $0.4 million were included in “Prepaid expenses and other current assets” and $56.2 million and $50.0 million were included in “Other assets, net.” Project Insurance Claim. In June 2018, while performing a horizontal directional drill and installing an underground gas pipeline, one of Quanta’s subsidiaries experienced a partial collapse of a borehole. Subsequent to the incident, Quanta has been working with its customer to mitigate the impact of the incident and to complete the project, and has encountered additional challenges similar to those experienced previously. As required by the contract, the customer procured certain insurance coverage for the project, with the Quanta subsidiary as an additional insured. Quanta believes the incident is covered under such insurance and is working collaboratively with the customer to pursue insurance claims with the customer’s insurance carriers. To the extent such claims are not successful, Quanta could pursue contractual relief from the customer or seek partial recovery under its own insurance policies. As of December 31, 2018 , Quanta had recorded an insurance receivable of $26.7 million , which represents a portion of the insurance claims being pursued as of such date and management’s estimate of the amount of costs incurred through such date that are probable of recovery. Quanta expects the insurance claims and the amount of insurance receivable to increase in future periods as additional mitigation costs are incurred, which could be significant. The plan and related work to mitigate the incident are not complete, may change and will be subject to inherent risks associated with underground pipeline installation, which could cause the costs to mitigate the incident to increase materially. To the extent Quanta is unsuccessful in realizing insurance or contractual recoveries, additional charges to operating results, which could be material, would be required. Letters of Credit Certain of Quanta’s vendors require letters of credit to ensure reimbursement for amounts they are disbursing on Quanta’s behalf, such as to beneficiaries under its insurance programs. In addition, from time to time, certain customers require Quanta to post letters of credit to ensure payment of subcontractors and vendors and guarantee performance under contracts. Such letters of credit are generally issued by a bank or similar financial institution, typically pursuant to Quanta’s senior secured credit facility. Each letter of credit commits the issuer to pay specified amounts to the holder of the letter of credit if the holder claims that Quanta has failed to perform specified actions. If this were to occur, Quanta would be required to reimburse the issuer of the letter of credit. Depending on the circumstances of such a reimbursement, Quanta may also be required to record a charge to earnings for the reimbursement. Quanta does not believe it is likely that any material claims will be made under a letter of credit in the foreseeable future. As of December 31, 2018 , Quanta had $412.9 million in outstanding letters of credit and bank guarantees under its senior secured credit facility securing its casualty insurance program and various contractual commitments. These are irrevocable stand-by letters of credit with maturities generally expiring at various times throughout 2019 . Quanta expects to renew the majority of the letters of credit related to the casualty insurance program for subsequent one-year periods upon maturity. Performance Bonds and Parent Guarantees Many customers, particularly in connection with new construction, require Quanta to post performance and payment bonds issued by a financial institution known as a surety. These bonds provide a guarantee to the customer that Quanta will perform under the terms of a contract and pay its subcontractors and vendors. If Quanta fails to perform, the customer may demand that the surety make payments or provide services under the bond. Quanta must reimburse the surety for any expenses or outlays it incurs. Under Quanta’s underwriting, continuing indemnity and security agreement with its sureties and with the consent of the lenders that are party to Quanta’s credit agreement, Quanta has granted security interests in certain of our assets as collateral for its obligations to the sureties. Subject to certain conditions and consistent with terms of Quanta’s credit agreement, these security interests will be automatically released if Quanta maintains a credit rating that meets two of the following three conditions: (i) a corporate credit rating that is BBB- or higher by Standard & Poor’s Rating Services, (ii) a corporate family rating that is Baa3 or higher by Moody’s Investors Services, Inc. or (iii) a corporate credit rating that is BBB- or higher by Fitch Ratings, Inc. Quanta may be required to post letters of credit or other collateral in favor of the sureties or Quanta’s customers in the future, which would reduce the borrowing availability under its senior secured credit facility. To date, Quanta has not been required to make any reimbursements to our sureties for bond-related costs. While Quanta believes that it is unlikely that it will have to fund significant claims under its surety arrangements in the foreseeable future, to the extent a reimbursement is required, the amount could be material. These performance bonds expire at various times ranging from mechanical completion of the related projects to a period extending beyond contract completion in certain circumstances, and as such a determination of maximum potential amounts outstanding requires the use of certain estimates and assumptions. Such amounts can also fluctuate from period to period based upon the mix and level of Quanta’s bonded operating activity. As of December 31, 2018 , the total amount of the outstanding performance bonds was estimated to be approximately $2.6 billion . Quanta’s estimated maximum exposure as it relates to the value of the performance bonds outstanding is lowered on each bonded project as the cost to complete is reduced, and each of its commitments under the performance bonds generally extinguishes concurrently with the expiration of its related contractual obligation. The estimated cost to complete these bonded projects was approximately $733 million as of December 31, 2018 . Additionally, from time to time, Quanta guarantees certain obligations and liabilities of its subsidiaries that may arise in connection with, among other things, contracts with customers, equipment lease obligations, joint venture arrangements and contractors’ licenses. These guarantees may cover all of the subsidiary’s unperformed, un-discharged and un-released obligations and liabilities under or in connection with the relevant agreement. For example, with respect to customer contracts, a guarantee may cover a variety of obligations and liabilities arising during the ordinary course of the subsidiary’s business or operations, including, among other things, warranty and breach of contract claims, third party and environmental liabilities arising from the subsidiary’s work and for which it is responsible, liquidated damages amounts, or indemnity claims. Quanta is not aware of any obligations or liabilities currently asserted under any of these guarantees that are material, individually or in the aggregate. However, to the extent a subsidiary incurs a material obligation or liability and Quanta has guaranteed the performance or payment of such liability, the recovery by a customer or other counterparty or a third party will not be limited to the assets of the subsidiary. As a result, responsibility under the guarantee could exceed the amount recoverable from the subsidiary alone and could materially and adversely affect Quanta’s consolidated business, financial condition, results of operations and cash flows. Employment Agreements Quanta has various employment agreements with certain executives and other employees, which provide for compensation, other benefits and, under certain circumstances, severance payments and post-termination equity-related benefits. Certain employment agreements also contain clauses that become effective upon a change in control of Quanta, and Quanta may be obligated to pay certain amounts to such employees upon the occurrence of any of the defined change in control events. Collective Bargaining Agreements Some of Quanta’s operating units are parties to various collective bargaining agreements with unions that represent certain of their employees. The collective bargaining agreements expire at various times and have typically been renegotiated and renewed on terms similar to those in the expiring agreements. From time to time, Quanta is a party to grievance actions based on claims arising out of the collective bargaining agreements. The agreements require the operating units to pay specified wages, provide certain benefits to their union employees and contribute certain amounts to multiemployer pension plans and employee benefit trusts. Quanta’s multiemployer pension plan contribution rates generally are specified in the collective bargaining agreements (usually on an annual basis), and contributions are made to the plans on a “pay-as-you-go” basis based on its union employee payrolls. The location and number of union employees that Quanta employs at any given time and the plans in which they may participate vary depending on the projects Quanta has ongoing at any time and the need for union resources in connection with those projects. Therefore, Quanta is unable to accurately predict its union employee payroll and the amount of the resulting multiemployer pension plan contribution obligations for future periods. The PPA also added special funding and operational rules generally applicable to plan years beginning after 2007 for multiemployer plans that are classified as “endangered,” “seriously endangered” or “critical” status based on multiple factors (including, for example, the plan’s funded percentage, cash flow position and whether it is projected to experience a minimum funding deficiency). Plans in these classifications must adopt measures to improve their funded status through a funding improvement or rehabilitation plan, as applicable, which may require additional contributions from employers (which may take the form of a surcharge on benefit contributions) and/or modifications to retiree benefits. Certain plans to which Quanta contributes or may contribute in the future are in “endangered,” “seriously endangered” or “critical” status. The amount of additional funds, if any, that Quanta may be obligated to contribute to these plans in the future cannot be reasonably estimated due to uncertainty of the future levels of work that require the specific use of union employees covered by these plans, as well as the future contribution levels and possible surcharges on contributions applicable to these plans. Quanta may be subject to additional liabilities imposed by law as a result of its participation in multiemployer defined benefit pension plans. For example, the Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980, imposes certain liabilities upon an employer who is a contributor to a multiemployer pension plan if the employer withdraws from the plan or the plan is terminated or experiences a mass withdrawal. These liabilities include an allocable share of the unfunded vested benefits in the plan for all plan participants, not merely the benefits payable to a contributing employer’s own retirees. As a result, participating employers may bear a higher proportion of liability for unfunded vested benefits if other participating employers cease to contribute or withdraw, with the reallocation of liability being more acute in cases when a withdrawn employer is insolvent or otherwise fails to pay its withdrawal liability. Quanta is not aware of any material amounts of withdrawal liability that have been incurred or asserted and that remain outstanding as a result of a withdrawal by Quanta from a multiemployer defined benefit pension plan. Indemnities Quanta generally indemnifies its customers for the services it provides under its contracts, as well as other specified liabilities, which may subject Quanta to indemnity claims and liabilities and related litigation. Additionally, in connection with certain acquisitions and dispositions, Quanta has indemnified various parties against specified liabilities that those parties might incur in the future. The indemnities under acquisition or disposition agreements are usually contingent upon the other party incurring liabilities that reach specified thresholds. As of December 31, 2018 , except as otherwise set forth above in Legal Proceedings , Quanta does not believe any material liabilities for claims exist against it in connection with any of these indemnity obligations. In the normal course of Quanta’s acquisition transactions, Quanta obtains rights to indemnification from the sellers or former owners of acquired businesses for certain risks, liabilities and obligations arising from their prior operations, such as performance, operational, safety, workforce or tax issues, some of which Quanta may not have discovered during due diligence. However, the indemnities may not cover all of Quanta’s exposure for such pre-acquisition matters, and the indemnitors may be unwilling or unable to pay the amounts owed to Quanta. Accordingly, Quanta may incur expenses for which it is not reimbursed. Quanta is currently in the process of negotiating certain pre-acquisition obligations associated with non-U.S. payroll taxes that may be due from a business acquired by Quanta in 2013. As of December 31, 2018 , Quanta had recorded $11.4 million |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION: Quanta presents its operations under two reportable segments: (1) Electric Power Infrastructure Services and (2) Pipeline and Industrial Infrastructure Services. This structure is generally based on the broad end-user markets for Quanta’s services. See Note 1 for additional information regarding Quanta’s reportable segments. Quanta’s segment results are derived from the types of services provided across its operating units in each of its end user markets. Quanta’s entrepreneurial business model allows each of its operating units to serve the same or similar customers and to provide a range of services across end user markets. Quanta’s operating units are organized into one of two internal divisions, namely, the Electric Power Infrastructure Services Division and the Pipeline and Industrial Infrastructure Services Division. These internal divisions are closely aligned with the reportable segments and are based on their operating units’ predominant type of work. Reportable segment information, including revenues and operating income by type of work, is gathered from each operating unit for the purpose of evaluating segment performance in support of Quanta’s market strategies. These classifications of Quanta’s operating unit revenues by type of work for segment reporting purposes can at times require judgment on the part of management. Quanta’s operating units may perform joint projects for customers in multiple industries, deliver multiple types of services under a single customer contract or provide service offerings to various industries. For example, Quanta performs joint trenching projects to install distribution lines for electric power and natural gas customers. In addition, Quanta’s integrated operations and common administrative support for its operating units require that certain allocations be made to determine segment profitability, including allocations of shared and indirect costs (e.g., facility costs), indirect operating expenses (e.g., depreciation), and general and administrative costs. Certain corporate costs are not allocated and include payroll and benefits, employee travel expenses, facility costs, professional fees, acquisition costs and amortization related to intangible assets. Summarized financial information for Quanta’s reportable segments is presented in the following table (in thousands): Year Ended December 31, 2018 2017 2016 Revenues: Electric Power Infrastructure Services $ 6,415,562 $ 5,599,836 $ 4,850,495 Pipeline and Industrial Infrastructure Services 4,755,861 3,866,642 2,800,824 Consolidated $ 11,171,423 $ 9,466,478 $ 7,651,319 Operating income (loss) : Electric Power Infrastructure Services $ 628,286 $ 518,130 $ 395,745 Pipeline and Industrial Infrastructure Services 204,178 184,083 149,502 Corporate and non-allocated costs (292,195 ) (323,364 ) (224,434 ) Consolidated $ 540,269 $ 378,849 $ 320,813 Depreciation: Electric Power Infrastructure Services $ 96,300 $ 91,708 $ 91,269 Pipeline and Industrial Infrastructure Services 89,046 76,355 67,374 Corporate and non-allocated costs 17,173 15,745 11,597 Consolidated $ 202,519 $ 183,808 $ 170,240 Separate measures of Quanta’s assets and cash flows by reportable segment, including capital expenditures, are not produced or utilized by management to evaluate segment performance. Quanta’s fixed assets, which are held at the operating unit level, include operating machinery, equipment and vehicles, as well as office equipment, buildings and leasehold improvements, and are used on an interchangeable basis across its reportable segments. As such, for reporting purposes, total depreciation expense is allocated each quarter among Quanta’s reportable segments based on the ratio of each reportable segment’s revenue contribution to consolidated revenues. Foreign Operations During 2018 , 2017 , and 2016 , Quanta derived $2.60 billion , $2.48 billion and $1.59 billion , respectively, of its revenues from foreign operations. Of Quanta’s foreign revenues, 76% , 79% and 75% were earned in Canada during the years ended December 31, 2018 , 2017 and 2016 , respectively. In addition, Quanta held property and equipment of $304.0 million and $330.4 million in foreign countries, primarily Canada, as of December 31, 2018 and 2017 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION: The net effects of changes in operating assets and liabilities, net of non-cash transactions, on cash flows from operating activities of continuing operations are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Accounts and notes receivable $ (475,919 ) $ (425,313 ) $ 144,877 Contract assets (92,838 ) 15,999 (152,702 ) Inventories (28,131 ) 14,110 (9,905 ) Prepaid expenses and other current assets (40,187 ) (32,079 ) 25,133 Accounts payable and accrued expenses and other non-current liabilities 247,897 28,547 81,246 Contract liabilities (23 ) 139,114 (124,680 ) Other, net (11,332 ) 17,858 (12,635 ) Net change in operating assets and liabilities, net of non-cash transactions $ (400,533 ) $ (241,764 ) $ (48,666 ) A reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of such amounts shown in the statements of cash flows are as follows (in thousands). December 31, 2018 2017 2016 2015 Cash and cash equivalents 78,687 138,285 $ 112,183 $ 128,771 Restricted cash included in “Prepaid expenses and other current assets” 3,286 5,106 1,709 — Restricted cash included in “Other assets, net” 1,283 384 518 — Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 83,256 $ 143,775 $ 114,410 $ 128,771 Restricted cash includes any cash that is legally restricted as to withdrawal or usage. Additional supplemental cash flow information is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Cash (paid) received during the period for - Interest paid related to continuing operations $ (34,935 ) $ (19,373 ) $ (12,828 ) Income taxes paid related to continuing operations $ (112,895 ) $ (112,335 ) $ (121,662 ) Income taxes paid related to discontinued operations $ — $ — $ (7,260 ) Income tax refunds related to continuing operations $ 5,209 $ 9,845 $ 7,548 During the year ended December 31, 2018, Quanta entered into non-cash transactions whereby Quanta accepted title to a marine industrial property appraised at $6.4 million in exchange for a construction barge and received certain equipment in exchange for other equipment and the discharge of a receivable with an aggregate value of $3.8 million . During the year ended December 31, 2017, Quanta entered into a non-cash transaction whereby Quanta accepted title to a construction barge in satisfaction and discharge of a $7.1 million |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED): The table below sets forth the unaudited consolidated operating results by quarter for the years ended December 31, 2018 and 2017 (in thousands, except per share information). For the Three Months Ended March 31, June 30, September 30, December 31, 2018: Revenues $ 2,417,576 $ 2,656,348 $ 2,985,281 $ 3,112,218 Gross profit 301,048 333,371 425,830 419,715 Net income 38,611 74,706 124,899 57,791 Net income from continuing operations attributable to common stock 37,614 74,365 124,551 56,816 Basic earnings per share from continuing operations attributable to common stock $ 0.24 $ 0.49 $ 0.82 $ 0.38 Diluted earnings per share from continuing operations attributable to common stock $ 0.24 $ 0.48 $ 0.81 $ 0.38 2017: Revenues $ 2,178,170 $ 2,200,374 $ 2,609,307 $ 2,478,627 Gross profit 266,188 302,165 350,631 322,876 Net income 48,440 64,360 89,849 115,576 Net income from continuing operations attributable to common stock 48,267 63,837 89,313 113,561 Basic earnings per share from continuing operations attributable to common stock $ 0.31 $ 0.41 $ 0.57 $ 0.72 Diluted earnings per share from continuing operations attributable to common stock $ 0.31 $ 0.41 $ 0.56 $ 0.72 During the fourth quarter of 2018, Quanta recorded asset impairment charges of $49.4 million ( $36.5 million net of tax) related to the winding down of certain oil-influenced operations and assets and net tax charges of $36.0 million , as further described in Note 9 and primarily related to Quanta’s final assessment of the Tax Act enacted on December 22, 2017 and for which regulations have been issued during 2018. During the fourth quarter of 2017, Quanta recorded one-time tax benefits as further described in Note 9 and asset impairment charges of $58.1 million ( $36.6 million net of tax), which were primarily associated with two reporting units within its Pipeline and Industrial Infrastructure Services Division. Specifically, a reporting unit that provides material handling services experienced lower operating margins and was expected to continue to face a highly competitive environment in its select markets, and a reporting unit that provides marine and offshore services experienced prolonged periods of reduced revenues and operating margins and was expected to continue to experience lower levels of activity in the U.S. Gulf of Mexico and other offshore markets. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENTS: PG&E Bankruptcy On January 29, 2019, one of Quanta’s largest customers, PG&E, filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code, as amended. Quanta is monitoring the bankruptcy proceeding and evaluating the treatment of, and potential claims related to, its pre-petition receivables. As of December 31, 2018, Quanta had $102.4 million of receivables from PG&E, of which $79.9 million was unpaid and outstanding on the bankruptcy filing date. Quanta currently believes it will ultimately collect the amounts owed, whether through assumption of certain executory contracts or through amounts approved by the bankruptcy court for payment to certain of PG&E’s safety and reliability suppliers. As with any bankruptcy, that belief is based on a number of assumptions that are potentially subject to change as the bankruptcy matter progresses. Should any of those assumptions change, the amount collected could be materially less than the amount of Quanta’s pre-petition receivables. Additionally, Quanta is continuing to perform services for PG&E while the bankruptcy case is ongoing and believes that amounts billed for post-petition services will be collected in the ordinary course. Acquisition On January 24, 2019, Quanta acquired an electric power specialty contracting business located in the United States. The purchase price for this acquisition was approximately $47.0 million |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of ConsolidationThe consolidated financial statements of Quanta include the accounts of Quanta Services, Inc. and its wholly owned subsidiaries, which are also referred to as its operating units. The consolidated financial statements also include the accounts of certain of Quanta’s investments in joint ventures, which are either consolidated or proportionately consolidated, as discussed in the following summary of significant accounting policies. Investments in affiliated entities in which Quanta does not have a controlling financial interest, but over which Quanta has significant influence, usually because Quanta holds a voting interest of between 20% and 50%, are accounted for using the equity method. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, references to Quanta include Quanta Services, Inc. and its consolidated subsidiaries. |
Reclassifications | ReclassificationsQuanta reclassified certain prior period amounts related to restricted cash and proceeds from the settlement of insurance claims related to property and equipment in the accompanying consolidated statements of cash flows to conform to the current period presentation under recently adopted accounting updates. See Note 3 for further details regarding these updates. Quanta also reclassified certain amounts related to cash paid for investments in unconsolidated affiliates and other entities and cash received from investments in unconsolidated affiliates and other entities on the accompanying statements of cash flows to conform to the current period presentation. Additionally, the amounts previously reported as “Costs and estimated earnings in excess of billings on uncompleted contracts” and “Billings in excess of costs and estimated earnings on uncompleted contracts” on Quanta’s consolidated balance sheets prior to 2018 have been included in the newly titled “Contract assets” and “Contract liabilities” in accordance with the newly adopted revenue recognition guidance discussed below and in Note 3. |
Use of Estimates and Assumptions | Use of Estimates and AssumptionsThe preparation of financial statements in conformity with generally accepted accounting principles in the United States requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses recognized during the periods presented. Quanta reviews all significant estimates affecting its consolidated financial statements on a recurring basis and records the effect of any necessary adjustments prior to their publication. Judgments and estimates are based on Quanta’s beliefs and assumptions derived from information available at the time such judgments and estimates are made. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements. Estimates are primarily used in Quanta’s assessment of the allowance for doubtful accounts, valuation of inventory, useful lives of assets, fair value assumptions in analyzing goodwill, other intangibles and long-lived asset impairments, equity and other investments, purchase price allocations, acquisition-related contingent consideration liabilities, liabilities for insurance and other claims and guarantees, multiemployer pension plan withdrawal liabilities, contingent liabilities, revenue recognition for construction contracts inclusive of contractual change orders and claims, share-based compensation, operating results of reportable segments, as well as the provision for income taxes and the calculation of uncertain tax positions. |
Revenue Recognition | Revenue Recognition As discussed in Note 3, effective January 1, 2018, Quanta adopted new revenue recognition guidance using the modified retrospective transition method, applying the guidance to contracts with customers that were not substantially complete as of such date. Quanta’s financial results for reporting periods after January 1, 2018 are presented under the new guidance, while financial results for prior periods will continue to be reported in accordance with the prior guidance and Quanta’s historical accounting policy. The net cumulative adjustment due to adoption of the new guidance was a $1.3 million reduction to retained earnings as of January 1, 2018, which represented a $1.8 million decrease to revenue recognized prior to adoption, net of $0.5 million in taxes. The adjustment primarily related to certain contracts that are now accounted for as a single performance obligation but were previously accounted for separately for revenue recognition purposes. Quanta does not anticipate significant changes to the pattern of revenue recognition for contracts with customers and does not believe that the guidance surrounding the identification of contracts and performance obligations or the measurement of variable consideration will have a material impact on revenue recognition under its customary contractual arrangements. If Quanta had not adopted the new revenue recognition guidance effective January 1, 2018, it would have recognized $2.0 million of additional revenues during the year ended December 31, 2018 . Contracts Quanta designs, installs, upgrades, repairs and maintains infrastructure for customers in the electric power, energy and communications industries. These services may be provided pursuant to master service agreements (MSAs), repair and maintenance contracts and fixed price and non-fixed price installation contracts. These contracts are classified into three categories based on how transaction prices are determined and revenue is recognized: unit-based contracts, cost-plus contracts and fixed price contracts. Transaction prices for unit-based contracts are determined on a per unit basis, transaction prices for cost-plus contracts are determined by applying a profit margin to costs incurred on the contracts and transaction prices for fixed price contracts are determined on a lump-sum basis. All of Quanta’s revenues are recognized from contracts with its customers. In addition to the considerations described below, revenue is not recognized unless collectability under the contract is considered probable, the contract has commercial substance and the contract has been approved. Additionally, the contract must contain payment terms, as well as the rights and commitments of both parties. Performance Obligations A performance obligation is a promise in a contract with a customer to transfer a distinct good or service. Most of Quanta’s contracts are considered to have a single performance obligation whereby Quanta is required to integrate complex activities and equipment into a deliverable for the customer. For contracts with multiple performance obligations, Quanta allocates the transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. The standalone selling price is estimated using the expected costs plus a margin approach for each performance obligation. At December 31, 2018 , the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations was estimated to be approximately $4.68 billion , of which 66.2% was expected to be recognized in the subsequent twelve months . This amount represents management’s estimate of the consolidated revenues that are expected to be realized from the remaining portion of firm orders under fixed price contracts not yet completed or for which work has not yet begun. For purposes of calculating remaining performance obligations, Quanta includes all estimated revenues attributable to consolidated joint ventures and variable interest entities, revenues from funded and unfunded portions of government contracts to the extent they are reasonably expected to be realized and revenues from change orders and claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations were potential orders under MSAs and non-fixed price contracts expected to be completed within one year. Recognition of Revenue Upon Satisfaction of Performance Obligations A transaction price is determined for each contract, and that amount is allocated to each performance obligation within the contract and recognized as revenue when, or as, the performance obligation is satisfied. Quanta generally recognizes revenue over time as it performs its obligations because there is a continuous transfer of control of the deliverable to the customer. Under unit-based contracts with an insignificant amount of partially completed units, Quanta recognizes revenue as units are completed based on contractual pricing amounts. Under unit-based contracts with more than an insignificant amount of partially completed units and fixed price contracts, Quanta recognizes revenues as performance obligations are satisfied over time, with the percentage completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation. Under cost-plus contracts, Quanta recognizes revenue on an input basis, as labor hours are incurred, materials are utilized and services are performed. Contract costs include all direct materials, labor and subcontract costs and indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. The majority of the materials associated with Quanta’s work are owner-furnished, and therefore not included in contract revenues and costs. Additionally, Quanta may incur incremental costs to obtain certain contracts, such as selling and marketing costs, bid and proposal costs, sales commissions, and legal fees or initial set-up or mobilization costs, certain of which can be capitalized under the newly adopted revenue recognition guidance. Such costs were not material during the year ended December 31, 2018 . Contract Estimates Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors, including unforeseen or changed circumstances not included in Quanta’s cost estimates or covered by its contracts. The estimating process is based on the professional knowledge and experience of Quanta’s engineers, project managers and financial professionals. Some of the factors that may lead to changes in estimates include concealed or unknown environmental conditions; changes in the cost of equipment, commodities, materials or labor; unanticipated costs or claims due to delays caused by customers or third parties; customer failure to provide required materials or equipment; errors in engineering, specifications or designs; project modifications or contract termination; weather conditions; changes in estimates related to the length of time to complete a performance obligation; and performance and quality issues requiring rework or replacement. These factors, along with other risks inherent in performing services under fixed price contracts, are routinely evaluated by management. Any changes in estimates could result in changes in profitability or losses associated with the related performance obligations. For example, estimated costs for a performance obligation may increase from the original estimate and contractual provisions may not allow for adequate compensation or reimbursement for such additional costs. Changes in estimated revenues, costs and profit are recorded in the period they are determined to be probable and can be reasonably estimated. Contract losses are recognized in full when losses are determined to be probable and can be reasonably estimated. Changes in cost estimates on certain contracts may result in the issuance of change orders and/or claims, which may be approved or unapproved by the customer. Quanta determines the probability that such costs will be recovered based on, among other things, contractual entitlement, past practices with the customer, specific discussions or preliminary negotiations with the customer or verbal approvals by the customer. Quanta recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reliably estimated. Most of Quanta’s change orders are for services that are not distinct from an existing contract and are accounted for as part of an existing contract on a cumulative catch-up basis. Quanta accounts for a change order as a separate contract if the additional goods or services are distinct from and increase the scope of the contract, and the price of the contract increases by an amount commensurate to Quanta’s standalone selling price for the additional goods or services. As of December 31, 2018 and 2017 , Quanta had recognized revenues of $121.8 million and $144.0 million related to change orders and claims included as contract price adjustments and that were in the process of being negotiated in the normal course of business. These aggregate amounts, which were included in “Contract assets” in the accompanying consolidated balance sheets, represent management’s estimates of additional contract revenues that were earned and probable of collection. However, Quanta’s estimates could be incorrect and the amount ultimately realized could be significantly higher or lower than the estimated amount. Variable consideration amounts, including performance incentives, early pay discounts and penalties, may also cause changes in contract estimates. The amount of variable consideration is estimated based on the most likely amount that is deemed probable of realization. Contract consideration is adjusted for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur once the uncertainty related to the variable consideration is resolved. Changes in contract estimates are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. Such changes in estimates can result in the recognition of revenue in a current period for performance obligations that were satisfied or partially satisfied in prior periods. Such changes in estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. The impact of a change in estimate is measured as the difference between the revenue or gross profit recognized in the prior period as compared to the revenue or gross profit which would have been recognized had the revised estimate been used as the basis of recognition in the prior period. Quanta’s operating results for the years ended December 31, 2018 and 2017 were impacted by less than 5% as a result of aggregate changes in contract estimates related to projects that were in progress at December 31, 2017 and 2016 , respectively. However, certain projects were materially impacted by changes to total estimated contract revenues and/or costs during the year ended December 31, 2018 . Quanta experienced engineering and production delays on an ongoing processing facility construction project in Texas, which resulted in additional estimated construction costs. These changes in estimates negatively impacted gross profit related to work performed in prior periods by $34.2 million during the year ended December 31, 2018 . At December 31, 2018 , this project had a contract value of approximately $150 million , was approximately 88% complete and is expected to be completed in 2019. Quanta also experienced unexpected site conditions, adverse weather conditions and material delivery delays on a renewable energy power project in Australia that negatively impacted gross profit related to work performed in prior periods by $22.3 million during the year ended December 31, 2018 . At December 31, 2018 , this project had a contract value of approximately $75 million and was approximately 86% complete. Additionally, a natural gas pipeline construction project in the northeast United States experienced weather delays and project performance issues resulting in additional estimated construction costs that negatively impacted gross profit related to work performed in prior periods by $17.3 million during the year ended December 31, 2018 . At December 31, 2018 , this project had a contract value of approximately $50 million and was approximately 99% complete. Quanta also successfully executed through project procurement, winter schedule challenges and productivity risks on an electrical transmission project in Canada, resulting in reductions to the estimated total costs necessary to complete the project. These changes positively impacted gross profit related to work performed in prior periods by $52.2 million during the year ended December 31, 2018 . Revenues by Category The following tables present Quanta’s revenue disaggregated by geographic location and contract type for the year ended December 31, 2018 (in thousands): Year Ended December 31, 2018 By primary geographic location: United States $ 8,575,341 76.7 % Canada 1,984,214 17.8 % Australia 377,453 3.4 % Latin America and Other 234,415 2.1 % Total revenues $ 11,171,423 100.0 % Year Ended December 31, 2018 By contract type: Unit-price contracts $ 3,828,997 34.3 % Fixed price contracts 4,835,401 43.3 % Cost-plus contracts 2,507,025 22.4 % Total revenues $ 11,171,423 100.0 % As described above, under unit-based contracts with more than an insignificant amount of partially completed units and fixed price contracts, revenue is recognized as performance obligations are satisfied over time, with the percentage completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation. Approximately 57.7% of Quanta’s revenues recognized during the year ended December 31, 2018 were associated with this revenue recognition method. Contract Assets and Liabilities With respect to Quanta’s contracts, interim payments are typically received as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. As a result, under fixed price contracts the timing of revenue recognition and contract billings results in contract assets and contract liabilities. Contract assets represent revenues recognized in excess of amounts billed for fixed price contracts and are current assets that are transferred to accounts receivable when billed or the billing rights become unconditional. Contract assets are not considered a significant financing component as the intent is to protect the customer in the event Quanta does not perform on its obligations under the contract. Conversely, contract liabilities represent billings in excess of revenues recognized for fixed price contracts. These arise under certain contracts that allow for upfront payments from the customer or contain contractual billing milestones, which result in billings that exceed the amount of revenues recognized for certain periods. Contract liabilities are current liabilities and are not considered a significant financing component, as they are used to meet working capital requirements that are generally higher in the early stages of a contract and protect Quanta from the other party failing to meet its obligations under the contract. Contract assets and liabilities are recorded on a performance obligation basis at the end of each reporting period. Contract assets and liabilities consisted of the following (in thousands): December 31, 2018 December 31, 2017 Contract assets $ 576,891 $ 497,292 Contract liabilities $ 425,961 $ 433,387 The increase in contract assets as of December 31, 2018 was primarily due to an increase in the volume of fixed price contracts in process. During the year ended December 31, 2018 , Quanta recognized revenue of approximately $400.0 million related to contract liabilities outstanding at December 31, 2017 . Additionally, during the year ended December 31, 2018 , revenues were favorably impacted by $71.9 million as a result of changes in estimates associated with performance obligations on fixed price contracts partially satisfied prior to December 31, 2017 . Impairment losses recognized on contract assets were not material for the year ended December 31, 2018 . Current and Long-Term Accounts Receivable, Notes Receivable and Allowance for Doubtful Accounts Quanta provides an allowance for doubtful accounts when collection of an account or note receivable is considered doubtful, and receivables are written off against the allowance when deemed uncollectible. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates regarding, among other factors, the customer’s access to capital, the customer’s willingness or ability to pay, general economic and market conditions, the ongoing relationship with the customer and uncertainties related to the resolution of disputed matters. Quanta considers accounts receivable delinquent after 30 days but does not generally include delinquent accounts in its analysis of the allowance for doubtful accounts unless the accounts receivable have been outstanding for at least 90 days. Quanta also includes accounts receivable balances that relate to customers in bankruptcy or with other known difficulties in its analysis of the allowance for doubtful accounts. Material changes to a customer’s business, cash flows or financial condition, which may be impacted by negative economic and market conditions, could affect Quanta’s ability to collect amounts due. Should anticipated recoveries relating to receivables fail to materialize (including anticipated recoveries relating to existing bankruptcies or other workout situations), Quanta could experience reduced cash flows and losses in excess of current allowances provided. As of December 31, 2018 and 2017 , Quanta had allowances for doubtful accounts on current receivables of $5.8 million and $4.5 million . See Note 18 for additional information related to the bankruptcy matter involving PG&E Corporation and its primary operating subsidiary, Pacific Gas and Electric Company (collectively PG&E), a significant customer of Quanta, which was filed on January 29, 2019. Long-term accounts receivable are included within “Other assets, net” in the accompanying consolidated balance sheets. Some contracts allow customers to withhold a small percentage of billings pursuant to retainage provisions, and such amounts are generally due upon completion of the contracts and acceptance by the customer. Based on Quanta’s experience with similar contracts in recent years, the majority of the retainage balances at each balance sheet date are expected to be collected within the next twelve months. Current retainage balances as of December 31, 2018 and 2017 were $337.1 million and $300.5 million and were included in “Accounts receivable.” Retainage balances with settlement dates beyond the next twelve months were included in “Other assets, net,” and as of December 31, 2018 and 2017 were $99.6 million and $41.9 million . Quanta recognizes unbilled receivables for non-fixed price contracts within “Accounts receivable” in certain circumstances, such as when revenues have been earned and recorded but the amount cannot be billed under the terms of the contract until a later date or amounts arise from routine lags in billing (for example, work completed one month but not billed until the next month). These balances do not include revenues recognized for work performed under fixed-price contracts as these amounts are recorded as “Contract assets.” At December 31, 2018 and 2017 , the balances of unbilled receivables included in “Accounts receivable” were $434.9 million and $303.9 million . Quanta also recognizes unearned revenues for non-fixed price contracts when cash is received prior to recognizing revenues for the related performance obligation. Unearned revenues, which are included in “Accounts payable and accrued expenses,” were $40.1 million and $16.0 million at December 31, 2018 and 2017 . Practical Expedients and Exemptions |
Current and Long-Term Accounts and Notes Receivable and Allowance for Doubtful Accounts | Current and Long-Term Accounts Receivable, Notes Receivable and Allowance for Doubtful Accounts Quanta provides an allowance for doubtful accounts when collection of an account or note receivable is considered doubtful, and receivables are written off against the allowance when deemed uncollectible. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates regarding, among other factors, the customer’s access to capital, the customer’s willingness or ability to pay, general economic and market conditions, the ongoing relationship with the customer and uncertainties related to the resolution of disputed matters. Quanta considers accounts receivable delinquent after 30 days but does not generally include delinquent accounts in its analysis of the allowance for doubtful accounts unless the accounts receivable have been outstanding for at least 90 days. Quanta also includes accounts receivable balances that relate to customers in bankruptcy or with other known difficulties in its analysis of the allowance for doubtful accounts. Material changes to a customer’s business, cash flows or financial condition, which may be impacted by negative economic and market conditions, could affect Quanta’s ability to collect amounts due. Should anticipated recoveries relating to receivables fail to materialize (including anticipated recoveries relating to existing bankruptcies or other workout situations), Quanta could experience reduced cash flows and losses in excess of current allowances provided. As of December 31, 2018 and 2017 , Quanta had allowances for doubtful accounts on current receivables of $5.8 million and $4.5 million . See Note 18 for additional information related to the bankruptcy matter involving PG&E Corporation and its primary operating subsidiary, Pacific Gas and Electric Company (collectively PG&E), a significant customer of Quanta, which was filed on January 29, 2019. Long-term accounts receivable are included within “Other assets, net” in the accompanying consolidated balance sheets. Some contracts allow customers to withhold a small percentage of billings pursuant to retainage provisions, and such amounts are generally due upon completion of the contracts and acceptance by the customer. Based on Quanta’s experience with similar contracts in recent years, the majority of the retainage balances at each balance sheet date are expected to be collected within the next twelve months. Current retainage balances as of December 31, 2018 and 2017 were $337.1 million and $300.5 million and were included in “Accounts receivable.” Retainage balances with settlement dates beyond the next twelve months were included in “Other assets, net,” and as of December 31, 2018 and 2017 were $99.6 million and $41.9 million . |
Cash and Cash Equivalents | Cash and Cash Equivalents Amounts related to Quanta’s cash and cash equivalents based on geographic location of the bank accounts were as follows (in thousands): December 31, 2018 2017 Cash and cash equivalents held in domestic bank accounts $ 62,495 $ 83,074 Cash and cash equivalents held in foreign bank accounts 16,192 55,211 Total cash and cash equivalents $ 78,687 $ 138,285 Cash consisting of interest-bearing demand deposits is carried at cost, which approximates fair value. Quanta considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents, which are carried at fair value. At December 31, 2018 and 2017 , cash equivalents were $37.2 million and $7.1 million and consisted primarily of money market investments and money market mutual funds and are discussed further in Fair Value Measurements below. Cash and cash equivalents held by joint ventures, which are either consolidated or proportionately consolidated, are available to support joint venture operations, but Quanta cannot utilize those assets to support its other operations. Quanta generally has no right to the joint ventures’ cash and cash equivalents other than participating in distributions and in the event of dissolution. Amounts related to cash and cash equivalents held by joint ventures, which are included in Quanta’s total cash and cash equivalents balances, were as follows (in thousands): December 31, 2018 2017 Cash and cash equivalents held by domestic joint ventures $ 8,544 $ 10,042 Cash and cash equivalents held by foreign joint ventures 441 6,615 Total cash and cash equivalents held by joint ventures 8,985 16,657 Cash and cash equivalents not held by joint ventures 69,702 121,628 Total cash and cash equivalents $ 78,687 $ 138,285 |
Inventories | InventoriesInventories consist primarily of parts and supplies held for use in the ordinary course of business, which are valued by Quanta at the lower of cost or net realizable value. Cost is determined by using either the first-in, first-out (FIFO) method or the average costing method. Inventories also include certain job specific materials not yet installed, which are valued using the specific identification method. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, and depreciation is computed using the straight-line method, net of estimated salvage values, over the estimated useful lives of the assets. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Depreciation expense related to property and equipment is recognized on a straight-line basis over the estimated useful lives of the assets and was $202.5 million , $183.8 million and $170.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Accrued capital expenditures were $2.7 million and $9.6 million as of December 31, 2018 and 2017 . The impact of these items has been excluded from Quanta’s capital expenditures in the accompanying consolidated statements of cash flows due to their non-cash nature. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing equipment, are capitalized and depreciated over the adjusted remaining useful lives of the assets. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in selling, general and administrative expenses. Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be realizable. When an evaluation is required, the estimated future undiscounted cash flows associated with the asset group are compared to the asset group’s carrying amount to determine if an impairment is necessary. The effect of any impairment involves expensing the difference between the fair value of the asset group and its carrying amount in the period incurred. Quanta recorded asset impairments of $49.4 million during the year ended December 31, 2018 related to the winding down of certain oil-influenced operations and assets. The related long-lived assets have been written down to their estimated fair value of $14.0 million and have been classified as assets held for sale and recorded in “Prepaid expenses and other current assets” in the accompanying December 31, 2018 consolidated balance sheet. These assets are associated with Quanta’s Pipeline and Industrial Infrastructure Services segment. Additionally, Quanta recorded asset impairments of $8.0 million in 2016 primarily related to certain international renewable energy services operations. The 2016 impairment was primarily due to a pending disposition of certain international renewable energy services operations that was completed in 2017. |
Other Assets, Net | Other Assets, NetOther assets, net consists primarily of long-term receivables, long-term retainage, deferred tax assets, debt issuance costs, equity and other investments, refundable security deposits for leased properties and insurance claims in excess of deductibles that are due from Quanta’s insurers. |
Debt Issuance and Amendment Costs | Debt Issuance and Amendment Costs Capitalized debt issuance and amendment costs related to Quanta’s senior secured credit facility are included in “Other assets, net” in the accompanying consolidated balance sheets and are amortized into interest expense on a straight-line basis over the terms of the respective agreements giving rise to the costs, which Quanta believes approximates the effective interest rate method. During 2018 and 2017, Quanta incurred $2.0 million and $1.5 million of debt issuance and amendment costs related to amendments and a restatement of its credit agreement. In 2017, Quanta recorded a nominal charge to interest expense for the write-off of a portion of the debt issuance and amendment costs related to the prior facility. As of December 31, 2018 and 2017 , capitalized debt issuance costs were $14.9 million and $12.9 million , with accumulated amortization of $8.6 million and $7.4 million . For the years ended December 31, 2018 , 2017 and 2016 , amortization expense related to capitalized debt issuance and amendment costs was $1.3 million , $1.3 million and $1.4 million |
Goodwill and Other Intangible Assets | Goodwill Goodwill, net of accumulated impairment losses, which represents the excess of cost over the fair market value of net tangible and identifiable intangible assets of acquired businesses, is stated at cost. Goodwill is not amortized but instead is annually tested for impairment, or more frequently if events or circumstances indicate that the carrying amount of goodwill may be impaired. Quanta has recorded goodwill in connection with its historical acquisitions of businesses. Upon acquisition, these businesses were either combined into one of Quanta’s existing operating units or managed on a stand-alone basis as an individual operating unit. Quanta’s operating units are organized into one of two internal divisions. The two internal divisions are: the Electric Power Infrastructure Services Division and the Pipeline and Industrial Infrastructure Services Division. As most of the companies acquired by Quanta provide multiple types of services for multiple types of customers, these divisional designations are based on the predominant type of work performed by an operating unit at the point in time the divisional designation is made. Goodwill is required to be measured for impairment at the reporting unit level, which represents the operating segment level or one level below the operating segment level for which discrete financial information is available. Quanta has determined that its individual operating units represent its reporting units for the purpose of assessing goodwill impairment. An annual assessment for impairment is performed for each reporting unit that carries a balance of goodwill. Quanta’s goodwill impairment assessment is performed during the fourth quarter of its fiscal year, or more frequently if events or circumstances arise which indicate that goodwill may be impaired. An assessment can be performed by first completing a qualitative assessment on none, some or all of its reporting units. Quanta can also bypass the qualitative assessment for any reporting unit in any period and proceed directly to the quantitative impairment test, and then resume the qualitative assessment in any subsequent period. Qualitative indicators that may trigger the need for annual or interim quantitative impairment testing include, among other things, deterioration in macroeconomic conditions, declining financial performance, deterioration in the operational environment, or an expectation of selling or disposing of a portion of a reporting unit. Additionally, a significant change in business climate, a loss of a significant customer, increased competition, a sustained decrease in share price, or a decrease in Quanta’s market capitalization below book value may trigger the need for interim impairment testing of goodwill associated with one or more of Quanta’s reporting units. If Quanta believes that, as a result of its qualitative assessment, it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. The quantitative test involves comparing the fair value of each of Quanta’s reporting units with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recorded as a reduction to goodwill with a corresponding charge to “Asset impairment charges” in the consolidated statements of operations. The income tax effect associated with an impairment of tax deductible goodwill is also considered in the measurement of the goodwill impairment. Any goodwill impairment is limited to the total amount of goodwill allocated to that reporting unit. Quanta determines the fair value of its reporting units using a weighted combination of the income approach (discounted cash flow method) and market multiples valuation techniques (market guideline transaction method and market guideline public company method), with heavier weighting on the discounted cash flow method because management believes this method results in the most appropriate calculation of fair value and reflects an expectation of market value as determined by a “held and used” model. Under the discounted cash flow method, Quanta determines fair value based on the estimated future cash flows for each reporting unit, discounted to present value using a risk-adjusted industry weighted average cost of capital, which reflects the overall level of inherent risk for each reporting unit and the rate of return an outside investor would expect to earn. Cash flow projections are derived from budgeted amounts (typically a one-year model) and subsequent period cash flows are developed for each reporting unit using growth rates that management believes are reasonably likely to occur. All cash flow projections by reporting unit are evaluated by management. A terminal value is derived from a multiple of the reporting unit’s earnings before interest, taxes, depreciation and amortization (EBITDA). The EBITDA multiples for each reporting unit are based on observed purchase transactions for similar businesses adjusted for size, volatility and risk. Under the market guideline transaction and market guideline public company methods, Quanta determines the estimated fair value for each of its reporting units by applying transaction multiples and public company multiples, respectively, to each reporting unit’s projected EBITDA and then averaging that estimate with similar historical calculations using either a one, two or three year average. The transaction multiples are based on observed purchase transactions for similar businesses adjusted for size, volatility and risk. The public company multiples are based on peer group multiples adjusted for size, volatility and risk. For the market guideline public company method, Quanta adds a reasonable control premium, which is estimated as the premium that would be appropriate to convert the reporting unit value to a controlling interest basis. The following table presents the significant estimates used by management in determining the fair values of Quanta’s reporting units for which a quantitative assessment was performed at December 31, 2018 , 2017 and 2016 : 2018 2017 2016 Years of cash flows before terminal value 5 years 5 years 5 years Weighted average cost of capital 12.0% to 15.0% 12.0% to 14.0% 12.5% to 14.5% Transaction multiples applied to EBITDA 6.5 to 9.0 5.5 to 7.0 5.5 to 7.0 Guideline public company multiples applied to EBITDA 6.5 to 9.5 6.5 to 8.0 5.5 to 7.0 Five-year revenue compounded annual growth rates -14% to 8% -14% to 17% -2% to 24% Weighting of three methods: Discounted cash flows 70% 70% 70% Market multiple 15% 15% 15% Market capitalization 15% 15% 15% For Quanta’s annual goodwill impairment assessment performed during the fourth quarter of 2018 , Quanta concluded to first assess qualitative factors to determine whether it was necessary to perform a quantitative fair value impairment analysis. As a result of the qualitative assessment, Quanta identified certain reporting units for which a quantitative goodwill impairment assessment was determined appropriate based on either changes in market conditions or specific performance indicators. Ultimately, the quantitative analyses indicated that the fair value of each of the selected reporting units was in excess of its carrying amount. Accordingly, Quanta did not record any impairment charges related to goodwill during the fourth quarter of 2018. In connection with the 2017 annual goodwill assessment, Quanta recorded a $57.0 million impairment associated with two reporting units. Specifically, a reporting unit that provides material handling services had experienced lower operating margins and was expected to continue to face a highly competitive environment in its select markets, and a reporting unit that provides marine and offshore services had experienced prolonged periods of reduced revenues and operating margins and was expected to continue to experience lower levels of activity in the U.S. Gulf of Mexico and other offshore markets. Although, no goodwill impairment charges were recorded during the year ended December 31, 2018, the determination of a reporting unit’s fair value requires judgment and the use of significant estimates and assumptions. Quanta believes the estimates and assumptions used in its impairment assessments are reasonable and based on available market information obtained from relevant industry sources; however, variations in any of the assumptions could result in materially different calculations of fair value and impairment determinations. Accordingly, management considered the sensitivity of its fair value estimates to changes in certain valuation assumptions. After taking into account a 10% decrease in the fair value of the reporting units for which a quantitative impairment test was performed, two reporting units within Quanta’s Pipeline and Industrial Infrastructure Services Division would have fair values below their carrying amounts. One of the reporting units is the material handling services business for which a goodwill impairment was recorded in 2017 as described above and the other reporting unit operates within the midstream and smaller-scale pipeline market. Goodwill and intangible assets associated with these two reporting units were $48.0 million and $11.1 million at December 31, 2018 . If an operating unit experiences prolonged periods of declining revenues, operating margins or both, it may be at risk of failing the quantitative goodwill impairment test. The reporting units referenced above have experienced declines over the short-term due to challenging macroeconomic conditions in certain geographic areas and low oil and natural gas prices, which have negatively impacted customer spending and resulted in project cancellations and delays. Additionally, customer capital spending has been constrained as a result of an increasingly complex regulatory and permitting environment. Quanta monitors these conditions and others to determine if it is necessary to perform the quantitative fair value impairment test for one or more operating units prior to the annual impairment assessment. Due to the cyclical nature of Quanta’s business, and the other factors described above, the profitability of its individual reporting units may suffer from decreases in customer demand and other factors. These factors may have a disproportionate impact on the individual reporting units as compared to Quanta as a whole and might adversely affect the fair value of individual reporting units. If material adverse conditions occur that impact Quanta’s reporting units, its future estimates of fair value may not support the carrying amount of one or more of its reporting units, and the related goodwill would need to be written down to an amount considered recoverable. Other Intangible Assets Quanta’s intangible assets include customer relationships, backlog, trade names, non-compete agreements, patented rights and developed technology and curriculum, all of which are subject to amortization, as well as an engineering license, which is not subject to amortization. The value of customer relationships is estimated as of the date a business is acquired based on the value-in-use concept utilizing the income approach, specifically the multi-period excess earnings method. This analysis discounts to present value the projected cash flows attributable to the customer relationships, with consideration given to customer contract renewals and estimated customer attrition rates. The following table presents the significant estimates used by management in determining the fair values of customer relationships associated with acquisitions in the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 Discount rates 20% to 27% 17% to 25% 20% to 23% Customer attrition rates 20% to 33% 15% to 78% 10% to 70% Quanta values backlog for acquired businesses as of the acquisition date based upon the contractual nature of the backlog within each service line, discounted to present value. The values of trade names and curriculum are estimated using the relief-from-royalty method of the income approach, which is based on the assumption that in lieu of ownership, a company would be willing to pay a royalty for use of the trade name and curriculum. The value of a non-compete agreement is estimated based on the difference between the present value of the prospective cash flows with the agreement in place and the present value of the prospective cash flows without the agreement in place. The value of the engineering license is based on cash paid to acquire the asset. Quanta amortizes the intangible assets that are subject to amortization based upon the estimated consumption of their economic benefits, or on a straight-line basis if the pattern of economic benefit cannot otherwise be reliably estimated. Intangible assets are reviewed for impairment and tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For instance, a significant change in business climate or a loss of a significant customer, among other things, may trigger the need for interim impairment testing of intangible assets. An impairment loss is recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. Intangible asset impairments are included within “Asset impairment charges” in the consolidated statements of operations. During 2017, Quanta recorded an impairment charge of $1.1 million |
Investments in Affiliates and Other Entities | Investments in Affiliates and Other Entities In the normal course of business, Quanta enters into various types of investment arrangements, each having unique terms and conditions. These investments may include equity interests held by Quanta in business entities, including general or limited partnerships, contractual joint ventures, or other forms of equity or profit participation. These investments may also include Quanta’s participation in different financing structures, such as the extension of loans to project specific entities, the acquisition of convertible notes issued by project specific entities, or other strategic financing arrangements. Quanta also enters into strategic partnerships with customers and infrastructure investors to provide fully integrated infrastructure services on certain projects, including planning and feasibility analyses, engineering, design, procurement, construction and project operation and maintenance. These projects include public-private partnerships and concessions, along with private infrastructure projects such as build, own, operate (and in some cases transfer) and build-to-suit arrangements. As part of this strategy, Quanta formed a partnership with select investors that provides up to $1.0 billion of capital, including approximately $80.0 million from Quanta, available to invest in certain of these infrastructure projects through August 2024. Wholly owned subsidiaries of Quanta serve as the general partner of this partnership and as a separately operated registered investment adviser that manages the invested capital. Quanta determines whether investments involve a variable interest entity (VIE) based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if Quanta is the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb significant losses of or the right to receive significant benefits from the VIE. When Quanta is deemed to be the primary beneficiary, the VIE is consolidated and the other party’s equity interest in the VIE is accounted for as a non-controlling interest. In cases where Quanta determines that it has an undivided interest in the assets, liabilities, revenues and profits of an unincorporated VIE (e.g., a general partnership interest), such amounts are consolidated on a basis proportional to Quanta’s ownership interest in the unincorporated entity. Investments in entities of which Quanta is not the primary beneficiary, but over which Quanta has the ability to exercise significant influence, are accounted for using the equity method of accounting. Quanta’s share of net income or losses from unconsolidated equity investments is reported as equity in earnings (losses) of unconsolidated affiliates, which is included in “Other expense, net” in the accompanying consolidated statements of operations. Equity investments are reviewed for impairment by assessing whether any decline in the fair value of the investment below the carrying amount is other than temporary. In making this determination, factors such as the ability to recover the carrying amount of the investment and the inability of the investee to sustain an earnings capacity are evaluated in determining whether a loss in value should be recognized. Any impairment losses related to investments would be recognized in equity in earnings (losses) of unconsolidated affiliates. Equity method investments are carried at original cost adjusted for Quanta’s proportionate share of the investees’ income, losses and distributions and are included in “Other assets, net” in Quanta’s accompanying consolidated balance sheets. Quanta has a minority ownership interest in a limited partnership that was selected during 2014 to build, own and operate a new electric transmission line and two substations in Alberta, Canada and has accounted for this interest as an equity-method investment. The limited partnership contracted with a Quanta subsidiary to perform the engineering, procurement and construction (EPC) services for the project, and the Quanta subsidiary recognizes revenue and related cost of services as performance progresses on the project. However, due to Quanta’s ownership interest, a proportional amount of the EPC profit is deferred until the electric transmission line and related substations are constructed and ownership of the assets is deemed to be transferred to the third party customer, which is expected to occur in 2019. The profit deferral has been recorded as a decrease to the equity method investment and as a component of equity in earnings (losses) of unconsolidated affiliates, which is included in “Other expense, net” in the accompanying consolidated statements of operations. Because the profit deferral is greater than the amount invested, the net amount has been included in “Insurance and other non-current liabilities” in the accompanying consolidated balance sheets. Investments in entities which Quanta is not the primary beneficiary, and over which Quanta does not have the ability to exercise significant influence, are accounted for using the cost method of accounting. These investments are required to be measured at fair value with changes in fair value recognized in net income unless the investments do not have readily determinable fair values, in which case the investments are measured at cost minus impairment, if any, plus or minus observable price changes in orderly transactions for an identical or a similar investment of the same company. During the year ended December 31, 2018 , Quanta acquired a 30% equity interest in a water and gas pipeline infrastructure contractor located in Australia for $22.2 million . This investment includes an option to acquire the remaining equity of the company through 2020 and provides for certain additional earnings and distribution participation rights during a designated 25-month post-investment period, as well as preferential liquidation rights. Quanta’s equity interest has been recorded at cost and will be adjusted for impairment, if any, plus or minus observable changes in the value of the company’s equity. Earnings on this investment are recognized as dividends are received and are reported in “Other expense, net” in the accompanying consolidated statements of operations. Quanta received and recognized $3.9 million in cash dividends from this investment during 2018. Additionally, during the year ended December 31, 2018 , Quanta acquired a 49% equity interest in an electric power infrastructure services company together with certain related customer relationship and other intangible assets for $12.3 million |
Income Taxes | Income Taxes Quanta follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded based on future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the underlying assets or liabilities are recovered or settled. Quanta regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain, including in connection with changes in tax laws. The estimation of required valuation allowances includes estimates of future taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Quanta considers projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income differs from these estimates, Quanta may not realize deferred tax assets to the extent estimated. Quanta records reserves for income taxes related to certain tax positions in those instances where Quanta considers it more likely than not that additional taxes may be due in excess of amounts reflected on income tax returns filed. When recording these reserves, Quanta assumes that taxing authorities have full knowledge of the position and all relevant facts. Quanta continually reviews exposure to additional tax obligations, and as further information is known or events occur, changes in tax reserves may be recorded. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and included in the provision for income taxes. As of December 31, 2018 , the total amount of unrecognized tax benefits relating to uncertain tax positions was $41.1 million , an increase from December 31, 2017 of $4.9 million . This increase resulted primarily from a $6.2 million increase in reserves for uncertain tax positions to be taken for 2018 and a $6.5 million net increase for uncertain tax positions related to prior years, partially offset by an $7.9 million decrease in reserves for uncertain tax positions resulting from the expiration of the statute of limitations for the 2014 tax year. Quanta and certain subsidiaries remain under examination by various U.S. state and Canadian and other foreign tax authorities for multiple periods. Quanta believes it is reasonably possible that within the next 12 months unrecognized tax benefits may decrease by up to $9.5 million as a result of settlement of these examinations or as a result of the expiration of certain statute of limitations periods. U.S. federal and state and foreign income tax laws and regulations are voluminous and are often ambiguous. As such, Quanta is required to make many subjective assumptions and judgments regarding its tax positions that could materially affect amounts recognized in its future consolidated balance sheets, consolidated statements of operations and consolidated statements of comprehensive income. For example, the Tax Cuts and Jobs Act of 2017 (the Tax Act) significantly revised the U.S. corporate tax regime which, among other things, resulted in a reduction of Quanta’s current and estimated future effective tax rate and a remeasurement of its deferred tax assets and liabilities. For additional information on the Tax Act, refer to Note 9 |
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share attributable to common stock are computed using the weighted average number of shares of common stock outstanding during the applicable period. Exchangeable shares that were issued pursuant to certain of Quanta’s historical acquisitions (as further discussed in Note 10), which are exchangeable on a one -for-one basis with shares of Quanta common stock, have been included in the calculation of weighted average shares outstanding for basic and diluted earnings per share attributable to common stock for the portion of the periods that they were outstanding. Additionally, unvested stock-based awards that contain non-forfeitable rights to dividends or dividend equivalents (participating securities) have been included in the calculation of basic and diluted earnings per share attributable to common stock for the portion of the periods that the awards were outstanding. Weighted average shares outstanding for basic and diluted earnings per share attributable to common stock for the years ended December 31, 2018 , 2017 and 2016 included 2.6 million , 2.3 million and 2.6 million |
Insurance | Insurance Quanta is insured for employer’s liability, workers’ compensation, auto liability and general liability claims. Under these programs, the deductible for employer’s liability is $1.0 million per occurrence, the deductible for workers’ compensation is $5.0 million per occurrence, and the deductibles for auto liability and general liability are $10.0 million per occurrence. Quanta manages and maintains a portion of its casualty risk through its wholly-owned captive insurance company, which insures all claims up to the amount of the applicable deductible of its third-party insurance programs. Quanta also has employee health care benefit plans for most employees not subject to collective bargaining agreements, of which the primary plan is subject to a deductible of $0.5 million per claimant per year. |
Collective Bargaining Agreements | Collective Bargaining AgreementsSome of Quanta’s operating units are parties to various collective bargaining agreements with unions that represent certain of their employees. The collective bargaining agreements expire at various times and have typically been renegotiated and renewed on terms similar to those in the expiring agreements. The agreements require the operating units to pay specified wages, provide certain benefits to their union employees and contribute certain amounts to multiemployer pension plans and employee benefit trusts. Quanta’s multiemployer pension plan contribution rates generally are specified in the collective bargaining agreements (usually on an annual basis), and contributions are made to the plans on a “pay-as-you-go” basis based on its union employee payrolls. The location and number of union employees that Quanta employs at any given time and the plans in which they may participate vary depending on the projects Quanta has ongoing at that time and the need for union resources in connection with those projects. Therefore, Quanta is unable to accurately predict the union employee payroll and the amount of the resulting multiemployer pension plan contribution obligations for future periods. |
Stock-Based Compensation | Stock-Based Compensation Quanta recognizes compensation expense for restricted stock, restricted stock units (RSUs) and performance units to be settled in common stock based on the fair value of the awards, net of estimated forfeitures. The fair value of these awards is generally determined based on the number of shares or units granted and the closing price of Quanta’s common stock on the date of grant, with the exception of performance units with market-based metrics, the fair value of which is determined using a Monte Carlo simulation valuation methodology. An estimate of future forfeitures, based on historical data, is utilized to determine the period expense. Such estimates are subject to change and may impact the value that will ultimately be recognized as compensation expense. The resulting compensation expense for performance unit and time-based RSU awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period, and the resulting compensation expense for performance-based RSU awards is recognized using the graded vesting method over the requisite service period. The compensation expense related to outstanding performance units can also vary from period to period based on changes in the total number of shares of common stock that Quanta anticipates will be issued upon vesting of such performance units. Payments made by Quanta to satisfy employee tax withholding obligations associated with awards settled in common stock are classified as financing cash flows. Compensation expense associated with liability-based awards, such as RSUs that are expected to or may settle in cash, is recognized based on a remeasurement of the fair value of the award at the end of each reporting period. Upon settlement, the holders receive for each RSU an amount in cash equal to the fair market value on the settlement date of one |
Functional Currency and Translation of Financial Statements | Functional Currency and Translation of Financial StatementsThe U.S. dollar is the functional currency for the majority of Quanta’s operations, which are primarily located within the United States. The functional currency for Quanta’s foreign operations, which are primarily located in Canada, Australia and Latin America, is typically the currency of the country where the foreign operating unit is located and transacts the majority of its activities, including billings, financing, payroll and other expenditures. The treatment of foreign currency translation gains or losses is dependent upon management’s determination of the functional currency, and when preparing its consolidated financial statements, Quanta translates the financial statements of its foreign operating units from their functional currency into U.S. dollars. Statements of operations, comprehensive income and cash flows are translated at average monthly rates, while balance sheets are translated at month-end exchange rates. The translation of the balance sheet results in translation gains or losses, which are included as a separate component of equity under “Accumulated other comprehensive income (loss).” Gains and losses arising from transactions not denominated in functional currencies are included within “Other expense, net” in the accompanying consolidated statements of operations. |
Comprehensive Income | Comprehensive IncomeComponents of comprehensive income include all changes in equity during a period, except those resulting from changes in Quanta’s capital related accounts. Quanta records other comprehensive income (loss) for foreign currency translation adjustments related to its foreign operations and for other revenues, expenses, gains and losses that are included in comprehensive income but excluded from net income. |
Litigation Costs and Reserves | Litigation Costs and ReservesQuanta records reserves when the likelihood of incurring a loss is probable and the amount of loss can be reasonably estimated. Costs incurred for litigation are expensed as incurred. Further details are presented in Note 14. |
Fair Value Measurements | Fair Value Measurements For disclosure purposes, qualifying assets and liabilities are categorized into three broad levels based on the priority of the inputs used to determine their fair values. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Certain assumptions and other information as they relate to these qualifying assets and liabilities are described below. Contingent Consideration Liabilities. As of December 31, 2018 and 2017 , financial instruments required to be measured at fair value on a recurring basis consisted primarily of Quanta’s liabilities related to contingent consideration associated with certain acquisitions, the payment of which is contingent upon the achievement of certain performance objectives by the acquired businesses during post-acquisition periods and, if earned, would be payable to the former owners of the acquired businesses. The liabilities recorded represent the estimated fair values of future amounts payable to the former owners of the acquired businesses and are estimated by management based on entity-specific assumptions that are evaluated on an ongoing basis. As of December 31, 2018 and 2017 , the aggregate fair value of these outstanding and unearned contingent consideration liabilities totaled $70.8 million and $65.7 million , all of which was included in “Insurance and other non-current liabilities” in the accompanying consolidated balance sheets. Quanta expects a significant portion of these liabilities to be settled by late 2020 or early 2021. The fair values of contingent consideration liabilities as of December 31, 2018 were primarily determined using a Monte Carlo simulation valuation methodology based on probability-weighted performance projections and other inputs, including a discount rate and an expected volatility factor for each acquisition. The expected volatility factors ranged from 22.2% to 30.0% based on historical asset volatility of selected guideline public companies. Depending on contingent consideration payment terms, the present values of the estimated payments are discounted based on a risk-free rate and/or Quanta’s cost of debt, ranging from 2.1% to 3.8% . The fair value determinations incorporate significant inputs not observable in the market. Accordingly, the level of inputs used for these fair value measurements is the lowest level (Level 3). Significant changes in any of these assumptions could result in a significantly higher or lower potential liability. The majority of Quanta’s contingent consideration liabilities are subject to a maximum payment amount, which totaled $157.2 million as of December 31, 2018 . One contingent consideration liability is not subject to a maximum payout amount, and that liability had a fair value of $1.0 million as of December 31, 2018 . Quanta’s aggregate contingent consideration liabilities can change due to additional business acquisitions, payments to settle outstanding liabilities, changes in the fair value of amounts owed based on actual or forecasted performance, and foreign currency translation gains or losses. During the years ended December 31, 2018 and 2017 , Quanta recognized net decreases in the fair value of contingent consideration liabilities of $11.2 million and $5.2 million , which were reflected in “Change in fair value of contingent consideration liabilities” in the accompanying consolidated statements of operations. Goodwill and Other Intangible Assets. As discussed in the Goodwill and Other Intangible Assets sections within this Note 2 above, Quanta has recorded goodwill and identifiable intangible assets in connection with certain of its historical business acquisitions. Quanta utilizes the fair value premise as the primary basis for its impairment valuation procedures. The Goodwill and Other Intangible Assets sections provide information regarding valuation methods, including the income approach, market approach and cost approach, and assumptions used to determine fair values of these assets based on the appropriateness of each method in relation to the type of asset being valued. Quanta believes that these valuation methods appropriately represent the methods that would be used by other market participants in determining fair value, and periodically engages the services of an independent valuation firm when a new business is acquired to assist management with this valuation process, including assistance with the selection of appropriate valuation methodologies and the development of market-based valuation assumptions. The level of inputs used for these fair value measurements is the lowest level (Level 3). Investments and Financial Instruments. Quanta also uses fair value measurements in connection with the valuation of its investments in private company equity interests and financial instruments. These valuations require significant management judgment due to the absence of quoted market prices, the inherent lack of liquidity and the long-term nature of such assets. Typically, the initial costs of these investments are considered to represent fair market value, as such amounts are negotiated between willing market participants. On a quarterly basis, Quanta performs an evaluation of its investments to determine if an other-than-temporary decline in the value of each investment has occurred and whether the recorded amount of each investment will be recoverable. If an other-than-temporary decline in the value of an investment occurs, a fair value analysis would be performed to determine the degree to which the investment was impaired and a corresponding charge to earnings would be recorded during the period. These types of fair market value assessments are similar to other nonrecurring fair value measures used by Quanta, which include the use of significant judgment and available relevant market data. Such market data may include observations of the valuation of comparable companies, risk adjusted discount rates and an evaluation of the expected performance of the underlying portfolio asset, including historical and projected levels of profitability or cash flows. In addition, a variety of additional factors may be reviewed by management, including, but not limited to, contemporaneous financing and sales transactions with third parties, changes in market outlook and the third-party financing environment. The level of inputs used for these fair value measurements is the lowest level (Level 3). Other. The carrying amounts of cash equivalents, accounts receivable and accounts payable and accrued expenses approximate fair value due to the short-term nature of these instruments. The carrying amount of variable rate debt also approximates fair value. All of Quanta’s cash equivalents were categorized as Level 1 assets at December 31, 2018 and 2017 |
Adoption of New Accounting Pronouncements and Accounting Standards Not Yet Adopted | Adoption of New Accounting Pronouncements In May 2014 , the Financial Accounting Standards Board (FASB) issued an update that superseded most revenue recognition guidance, as well as certain cost recognition guidance. The update, together with other clarifying updates, requires that the recognition of revenue related to the transfer of goods or services to customers reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update also requires additional qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments, and information about contract balances and performance obligations. Quanta adopted the new revenue recognition guidance using the modified retrospective transition method effective January 1, 2018 , applying the guidance to contracts that were not substantially complete as of such date. Quanta’s financial results for reporting periods after January 1, 2018 have been and will be presented under the new guidance, while financial results for prior periods will continue to be reported in accordance with the prior guidance and Quanta’s historical accounting policy. The net cumulative adjustment resulting from adoption was a $1.3 million reduction to retained earnings as of January 1, 2018 , which represented a $1.8 million decrease to revenue recognized prior to adoption, net of $0.5 million in taxes. This adjustment primarily related to certain contracts that are now accounted for as a single performance obligation but were previously accounted for separately for revenue recognition purposes. Quanta has not experienced significant changes to the pattern of revenue recognition for its contracts, the identification of contracts and performance obligations or the measurement of variable consideration. For the year ended December 31, 2018 , the impact related to the adoption of the new revenue recognition guidance on revenues, contract assets and contract liabilities was immaterial. If Quanta had not adopted the new revenue recognition guidance effective January 1, 2018, it would have recognized $2.0 million of additional revenues during the year ended December 31, 2018 . Quanta has also expanded its discussion in Note 2 above to address the quantitative and qualitative disclosure requirements of the new revenue recognition standard. In January 2016 , the FASB issued an update that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments to provide users of financial statements with more decision-useful information. This update requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus observable price changes in orderly transactions for an identical or a similar investment of the same company. Quanta adopted the new standard effective January 1, 2018 . Quanta’s equity investments that are within the scope of this update do not have readily determinable fair values. Accordingly, Quanta continues to measure these investments at cost less any impairments and also considers changes resulting from any observable price changes as described above. The new standard is not expected to have a material impact on Quanta’s consolidated financial statements in the near-term based on the number and amount of equity investments held at the time of adoption. In August 2016 , the FASB issued an update intended to standardize the classification of certain transactions on the statements of cash flows . These transactions include contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investments. The new standard requires application using a retrospective transition method. Quanta adopted this guidance effective January 1, 2018 , and the changes did not have a material impact on its consolidated financial statements. In October 2016 , the FASB issued an update that requires a reporting entity to recognize the tax expense from the sale of an asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction should be recognized at the time of the transfer. The new guidance does not apply to intra-entity transfers of inventory. The income tax consequences from the sale of inventory from one member of a consolidated entity to another will continue to be deferred until the inventory is sold to a third party. Quanta adopted this guidance effective January 1, 2018 utilizing the modified retrospective method, and the changes did not have a material impact on its consolidated financial statements. In November 2016 , the FASB issued an update intended to standardize the classification of restricted cash and cash equivalents transactions on the statement of cash flows . The new guidance requires net cash withdrawn from (deposited to) restricted cash to be removed from investing activities. Additionally, restricted cash balances for each period are included with “Cash and cash equivalents” in order to obtain beginning and ending balances for consolidated statement of cash flow purposes, and any activity between “Cash and cash equivalents” and restricted cash is no longer reported on Quanta’s consolidated statements of cash flows. Quanta adopted this guidance effective January 1, 2018 utilizing the retrospective transition method, and the changes did not have a material impact on its consolidated financial statements. See Note 15 for reconciliations of “Cash and cash equivalents” and restricted cash. In January 2017 , the FASB issued an update intended to clarify whether transactions should be accounted for as acquisitions or disposals of assets or businesses. When substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or group of similar identifiable assets, the asset or group is not a business. The update requires, among other things, that to be considered a business , a set of assets and activities must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. Additionally, the update removes the evaluation of whether a market participant could replace missing elements in order to consider the set of assets and activities a business, provides more stringent criteria for sets without outputs and narrows the definition of output. Quanta adopted this guidance effective January 1, 2018 utilizing the prospective transition method, and the changes did not materially impact its consolidated financial statements. In May 2017 , the FASB issued an update providing guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. A modification should be accounted for unless the following characteristics of the award are unchanged: the fair value, the vesting conditions and the classification as an equity instrument or a liability instrument. Quanta adopted this guidance effective January 1, 2018 using the prospective transition method, and the changes did not materially impact its consolidated financial statements. In June 2018 , the FASB issued an update that expands the scope of share-based payment accounting to include share-based payment transactions for acquiring goods and services from non-employees. Quanta adopted this guidance in 2018, which did not materially impact Quanta’s consolidated financial statements. In August 2018 , the FASB issued an update that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Quanta adopted this guidance in 2018, which did not materially impact Quanta’s consolidated financial statements. Quanta will apply the new guidance prospectively. Accounting Standards Not Yet Adopted In February 2016 , the FASB issued an update that requires the recognition of operating lease right-of-use assets and the corresponding lease liabilities on the balance sheet. The new standard is effective for interim and annual periods beginning after December 15, 2018. In July 2018, the FASB issued an update that provides entities a choice between the previously required modified retrospective transition method and another transition method that allows entities to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Quanta established a cross-functional team to implement this standard and evaluated arrangements that would be subject to the standard, implemented software to meet the reporting and disclosure requirements of the standard and assessed the impact of the standard on its processes and internal controls. Quanta plans to elect the practical expedients that permit it to retain the identification and classification of leases under the previous accounting guidance, as well as an expedient where leases with terms of twelve months or less are not recorded on the balance sheet. Quanta will adopt this guidance effective January 1, 2019 . Quanta anticipates recording lease right-of-use assets and lease liabilities in similar amounts of between approximately $280 million and $320 million on its consolidated balance sheet as of January 1, 2019 , with any difference between the right-of-use assets and lease liabilities being recorded as a cumulative effect adjustment as of such date. The update is not anticipated to have a material effect on Quanta’s consolidated statement of operations and is not expected to have a material impact on Quanta’s compliance with the financial covenants under its senior secured credit facility. In June 2016 , the FASB issued an update that will change the way companies measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The update will require companies to use an “expected loss” model for instruments measured at amortized cost and to record allowances for available-for-sale debt securities rather than reduce the carrying amounts. The update will also require disclosure of information regarding how a company developed its allowance, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. Companies will apply this standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The new standard is effective for interim and annual reporting periods beginning after December 15, 2019. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements and will adopt this guidance effective January 1, 2020 . In August 2017 , the FASB issued an update that amends and simplifies existing guidance for presenting the economic effects of risk management activities in the financial statements. The update is effective for interim and annual periods beginning after December 15, 2018. The amended presentation and disclosure guidance is required only prospectively, but certain amendments, if applicable, could require a cumulative-effect adjustment. Quanta is evaluating the impact of this new standard on its consolidated financial statements and will adopt the new standard effective January 1, 2019 ; however, as of December 31, 2018 , Quanta had no hedging relationships outstanding. In August 2018 , the FASB issued an update that amends certain disclosure requirements related to fair value measurements. Certain disclosure requirements will be removed, such as the valuation processes for Level 3 fair value measurements, and other disclosure requirements will be modified or added, including a new requirement to disclose the range and weighted average (or a more reasonable and rational method to reflect the distribution) of significant unobservable inputs used to develop Level 3 fair value measurements. This update is effective for interim and annual periods beginning after December 15, 2019. Certain amendments, including the disclosure of the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements, should be applied prospectively, while other amendments should be applied retrospectively. Quanta is evaluating the impact of this new standard on its consolidated financial statements and will adopt the new standard effective January 1, 2020 |
Acquisitions | These allocations require significant use of estimates and are based on information that was available to management at the time these consolidated financial statements were prepared. Quanta uses a variety of information to estimate fair values, including quoted market prices, carrying amounts and valuation techniques such as discounted cash flows. When deemed appropriate, third-party appraisal firms are engaged to assist in fair value determination of fixed assets, intangible assets and certain other assets and liabilities (in thousands). |
Treasury Stock | Treasury Stock General |
Segment Reporting | Quanta presents its operations under two reportable segments: (1) Electric Power Infrastructure Services and (2) Pipeline and Industrial Infrastructure Services. This structure is generally based on the broad end-user markets for Quanta’s services. See Note 1 for additional information regarding Quanta’s reportable segments. Quanta’s segment results are derived from the types of services provided across its operating units in each of its end user markets. Quanta’s entrepreneurial business model allows each of its operating units to serve the same or similar customers and to provide a range of services across end user markets. Quanta’s operating units are organized into one of two internal divisions, namely, the Electric Power Infrastructure Services Division and the Pipeline and Industrial Infrastructure Services Division. These internal divisions are closely aligned with the reportable segments and are based on their operating units’ predominant type of work. Reportable segment information, including revenues and operating income by type of work, is gathered from each operating unit for the purpose of evaluating segment performance in support of Quanta’s market strategies. These classifications of Quanta’s operating unit revenues by type of work for segment reporting purposes can at times require judgment on the part of management. Quanta’s operating units may perform joint projects for customers in multiple industries, deliver multiple types of services under a single customer contract or provide service offerings to various industries. For example, Quanta performs joint trenching projects to install distribution lines for electric power and natural gas customers. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Revenue Disaggregated by Geographic Location and Contract Type | The following tables present Quanta’s revenue disaggregated by geographic location and contract type for the year ended December 31, 2018 (in thousands): Year Ended December 31, 2018 By primary geographic location: United States $ 8,575,341 76.7 % Canada 1,984,214 17.8 % Australia 377,453 3.4 % Latin America and Other 234,415 2.1 % Total revenues $ 11,171,423 100.0 % Year Ended December 31, 2018 By contract type: Unit-price contracts $ 3,828,997 34.3 % Fixed price contracts 4,835,401 43.3 % Cost-plus contracts 2,507,025 22.4 % Total revenues $ 11,171,423 100.0 % |
Contract Assets and Liabilities | Contract assets and liabilities consisted of the following (in thousands): December 31, 2018 December 31, 2017 Contract assets $ 576,891 $ 497,292 Contract liabilities $ 425,961 $ 433,387 |
Cash and Cash Equivalents | Amounts related to Quanta’s cash and cash equivalents based on geographic location of the bank accounts were as follows (in thousands): December 31, 2018 2017 Cash and cash equivalents held in domestic bank accounts $ 62,495 $ 83,074 Cash and cash equivalents held in foreign bank accounts 16,192 55,211 Total cash and cash equivalents $ 78,687 $ 138,285 December 31, 2018 2017 Cash and cash equivalents held by domestic joint ventures $ 8,544 $ 10,042 Cash and cash equivalents held by foreign joint ventures 441 6,615 Total cash and cash equivalents held by joint ventures 8,985 16,657 Cash and cash equivalents not held by joint ventures 69,702 121,628 Total cash and cash equivalents $ 78,687 $ 138,285 |
Significant Estimates Used by Management in Determining Fair Values of the Company's Reporting Units and Customer Relationships Acquired | The following table presents the significant estimates used by management in determining the fair values of Quanta’s reporting units for which a quantitative assessment was performed at December 31, 2018 , 2017 and 2016 : 2018 2017 2016 Years of cash flows before terminal value 5 years 5 years 5 years Weighted average cost of capital 12.0% to 15.0% 12.0% to 14.0% 12.5% to 14.5% Transaction multiples applied to EBITDA 6.5 to 9.0 5.5 to 7.0 5.5 to 7.0 Guideline public company multiples applied to EBITDA 6.5 to 9.5 6.5 to 8.0 5.5 to 7.0 Five-year revenue compounded annual growth rates -14% to 8% -14% to 17% -2% to 24% Weighting of three methods: Discounted cash flows 70% 70% 70% Market multiple 15% 15% 15% Market capitalization 15% 15% 15% December 31, 2018 , 2017 and 2016 : 2018 2017 2016 Discount rates 20% to 27% 17% to 25% 20% to 23% Customer attrition rates 20% to 33% 15% to 78% 10% to 70% |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Summary of Aggregate Consideration Paid or Payable and Allocation of Amounts to the Net Tangible and Identifiable Intangible Assets | The following table summarizes the aggregate consideration paid or payable as of December 31, 2018 for the 2018 acquisitions and 2017 acquisitions and presents the allocation of these amounts to net tangible and identifiable intangible assets based on their estimated fair values as of the respective acquisition dates, inclusive of any purchase price adjustments. These allocations require significant use of estimates and are based on information that was available to management at the time these consolidated financial statements were prepared. Quanta uses a variety of information to estimate fair values, including quoted market prices, carrying amounts and valuation techniques such as discounted cash flows. When deemed appropriate, third-party appraisal firms are engaged to assist in fair value determination of fixed assets, intangible assets and certain other assets and liabilities (in thousands). 2018 2017 All Acquisitions Stronghold Other Acquisitions Consideration: Cash paid or payable $ 106,804 $ 351,014 $ 11,955 Value of Quanta common stock issued 22,882 81,337 8,267 Contingent consideration 16,471 51,084 — Fair value of total consideration transferred or estimated to be transferred $ 146,157 $ 483,435 $ 20,222 Accounts receivable $ 18,405 $ 77,478 $ 7,157 Contract assets 1,905 11,913 193 Other current assets 8,484 20,914 170 Property and equipment 23,674 51,258 1,480 Other assets 576 1,513 12 Identifiable intangible assets 52,364 95,700 8,091 Contract liabilities (175 ) (13,489 ) (93 ) Other current liabilities (11,205 ) (58,346 ) (2,705 ) Deferred tax liabilities, net (4,208 ) — — Other long-term liabilities — (48 ) — Total identifiable net assets 89,820 186,893 14,305 Goodwill 56,337 296,542 5,917 $ 146,157 $ 483,435 $ 20,222 |
Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization | The following table summarizes the estimated fair values of identifiable intangible assets for the 2018 acquisitions as of the acquisition dates and the related weighted average amortization periods by type (in thousands, except for weighted average amortization periods, which are in years). Estimated Weighted Average Fair Value Amortization Period in Years Customer relationships $ 30,767 5.3 Backlog 2,158 1.0 Trade names 7,689 15.0 Non-compete agreements 2,750 5.0 Curriculum $ 9,000 10.0 Total intangible assets subject to amortization acquired in 2018 acquisitions $ 52,364 7.4 |
Unaudited Supplemental Pro Forma Results of Operations | Future results may vary significantly from the results reflected in the following pro forma financial information because of future events and transactions, as well as other factors (in thousands, except per share amounts): Year Ended December 31, 2018 2017 2016 Revenues $ 11,238,475 $ 9,848,386 $ 8,183,104 Gross profit $ 1,506,125 $ 1,356,515 $ 1,129,661 Selling, general and administrative expenses $ 865,452 $ 842,996 $ 734,900 Amortization of intangible assets $ 49,262 $ 49,918 $ 46,579 Net income from continuing operations $ 304,565 $ 333,386 $ 207,956 Net income from continuing operations attributable to common stock $ 301,904 $ 330,139 $ 206,241 Earnings per share from continuing operations: Basic $ 1.97 $ 2.08 $ 1.29 Diluted $ 1.95 $ 2.07 $ 1.29 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Quanta's Goodwill | A summary of changes in Quanta’s goodwill is as follows (in thousands): Electric Power Infrastructure Services Division Pipeline and Industrial Infrastructure Services Division Total Balance at December 31, 2015: Goodwill $ 1,226,245 $ 366,306 $ 1,592,551 Accumulated impairment — (39,893 ) (39,893 ) $ 1,226,245 $ 326,413 1,552,658 Goodwill recorded related to 2016 acquisitions 24,168 21,018 45,186 Purchase price allocation adjustments 229 (214 ) 15 Foreign currency translation adjustments 3,337 1,973 5,310 Balance at December 31, 2016: Goodwill 1,253,979 388,923 1,642,902 Accumulated impairment — (39,733 ) (39,733 ) 1,253,979 349,190 1,603,169 Goodwill recorded related to 2017 acquisitions 5,866 296,542 302,408 Purchase price allocation adjustments (619 ) (659 ) (1,278 ) Goodwill impaired during 2017 — (57,011 ) (57,011 ) Foreign currency translation adjustments 13,301 8,011 21,312 Balance at December 31, 2017: Goodwill 1,272,527 693,905 1,966,432 Accumulated impairment — (97,832 ) (97,832 ) 1,272,527 596,073 1,868,600 Goodwill recorded related to 2018 acquisitions 56,337 — 56,337 Purchase price allocation adjustments 51 — 51 Foreign currency translation adjustments (15,837 ) (9,272 ) (25,109 ) Balance at December 31, 2018: Goodwill 1,313,078 683,284 1,996,362 Accumulated impairment — (96,483 ) (96,483 ) $ 1,313,078 $ 586,801 $ 1,899,879 |
Other Intangible Assets | Quanta’s intangible assets and the remaining weighted average amortization periods related to its intangible assets subject to amortization were as follows (in thousands except for weighted average amortization periods, which are in years): As of As of As of December 31, December 31, 2018 December 31, 2017 2018 Intangible Assets Accumulated Amortization Intangible Assets, Net Intangible Assets Accumulated Amortization Intangible Assets, Net Remaining Weighted Average Amortization Period in Years Customer relationships $ 359,967 $ (165,715 ) $ 194,252 $ 327,334 $ (137,333 ) $ 190,001 6.2 Backlog 135,578 (134,592 ) 986 136,266 (135,847 ) 419 0.7 Trade names 81,058 (21,559 ) 59,499 74,797 (17,057 ) 57,740 15.4 Non-compete agreements 40,728 (30,168 ) 10,560 37,760 (27,659 ) 10,101 3.6 Patented rights and developed technology 22,482 (19,175 ) 3,307 22,529 (17,611 ) 4,918 2.7 Curriculum 9,448 (872 ) 8,576 — — — 9.1 Total intangible assets subject to amortization 649,261 (372,081 ) 277,180 598,686 (335,507 ) 263,179 8.0 Engineering license 3,000 — 3,000 — — — Total intangible assets $ 652,261 $ (372,081 ) $ 280,180 $ 598,686 $ (335,507 ) $ 263,179 |
Estimated Future Aggregate Amortization Expense of Intangible Assets | The estimated future aggregate amortization expense of intangible assets subject to amortization as of December 31, 2018 is set forth below (in thousands): Year Ending December 31: 2019 $ 47,135 2020 44,980 2021 42,657 2022 39,129 2023 31,323 Thereafter 71,956 Total $ 277,180 |
Per Share Information (Tables)
Per Share Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The amounts used to compute basic and diluted earnings per share attributable to common stock for the years ended December 31, 2018 , 2017 and 2016 consisted of the following (in thousands): Year Ended December 31, 2018 2017 2016 Amounts attributable to common stock: Net income from continuing operations $ 293,346 $ 314,978 $ 198,725 Net loss from discontinued operations — — (342 ) Net income attributable to common stock $ 293,346 $ 314,978 $ 198,383 Weighted average shares: Weighted average shares outstanding for basic earnings per share attributable to common stock 152,963 156,124 157,287 Effect of dilutive unvested non-participating stock-based awards 1,263 1,031 1 Weighted average shares outstanding for diluted earnings per share attributable to common stock 154,226 157,155 157,288 |
Detail of Certain Balance She_2
Detail of Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Current and Long-Term Allowance for Doubtful Accounts | Activity in Quanta’s allowance for doubtful accounts consisted of the following (in thousands): December 31, 2018 2017 Balance at beginning of year $ 4,465 $ 2,752 Charged to bad debt expense (recoveries of bad debt expense) 7,169 87 Deductions for uncollectible receivables written off (recoveries of uncollectible receivables) (5,795 ) 1,626 Balance at end of year $ 5,839 $ 4,465 |
Property and Equipment | Property and equipment consisted of the following (in thousands): Estimated Useful December 31, Lives in Years 2018 2017 Land N/A $ 61,305 $ 48,832 Buildings and leasehold improvements 5-30 208,974 155,628 Operating equipment and vehicles 1-25 1,865,917 1,834,715 Office equipment, furniture and fixtures and information technology systems 3-10 212,769 170,115 Construction work in progress N/A 19,507 60,587 2,368,472 2,269,877 Less — Accumulated depreciation and amortization (1,092,440 ) (981,275 ) Property and equipment, net $ 1,276,032 $ 1,288,602 |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following (in thousands): December 31, 2018 2017 Accounts payable, trade $ 786,546 $ 632,931 Accrued compensation and related expenses 279,107 225,193 Accrued insurance, current portion 56,552 64,112 Deferred revenues, current portion 40,083 15,967 Income and franchise taxes payable 13,094 19,635 Other accrued expenses 139,138 99,622 $ 1,314,520 $ 1,057,460 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt Obligations | Quanta’s long-term debt obligations consisted of the following (in thousands): December 31, 2018 2017 Borrowings under senior secured credit facility $ 1,070,299 $ 668,427 Other long-term debt, interest rate of 2.4% 1,523 1,810 Capital leases, interest rates ranging from 2.5% to 3.8% 934 1,704 Total long-term debt obligations 1,072,756 671,941 Less — Current maturities of long-term debt 32,224 1,220 Total long-term debt obligations, net of current maturities $ 1,040,532 $ 670,721 |
Current Maturities of Long-Term Debt and Short-Term Debt | Quanta’s current maturities of long-term debt and short-term debt consisted of the following (in thousands): December 31, 2018 2017 Short-term debt $ 33,422 $ — Current maturities of long-term debt 32,224 1,220 Current maturities of long-term debt and short-term debt $ 65,646 $ 1,220 |
Information on Borrowings under the Credit Facility | Borrowings under the credit facility and the applicable interest rates during the years ended December 31, 2018 , 2017 and 2016 were as follows (dollars in thousands): Year Ended December 31, 2018 2017 2016 Maximum amount outstanding under the credit facility during the period $ 1,300,401 $ 917,895 $ 518,607 Average daily amount outstanding under the credit facility $ 914,012 $ 613,130 $ 458,908 Weighted-average interest rate 3.6 % 2.7 % 2.1 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of income (loss) from continuing operations before income taxes were as follows (in thousands): Year Ended December 31, 2018 2017 2016 Income (loss) from continuing operations before income taxes: Domestic $ 318,635 $ 291,031 $ 349,959 Foreign 139,031 62,726 (42,273 ) Total $ 457,666 $ 353,757 $ 307,686 |
Provision for Income Taxes | The components of the provision for income taxes for continuing operations were as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current: Federal $ 50,306 $ 44,695 $ 106,316 State 26,170 301 11,549 Foreign 23,209 22,666 5,076 Total current tax provision 99,685 67,662 122,941 Deferred: Federal 62,482 (36,915 ) (264 ) State (4,152 ) 14,951 (923 ) Foreign 3,644 (10,166 ) (14,508 ) Total deferred tax provision (benefit) 61,974 (32,130 ) (15,695 ) Total provision for income taxes from continuing operations $ 161,659 $ 35,532 $ 107,246 |
Effective Income Tax Rate Reconciliation | The actual income tax provision differed from the income tax provision computed by applying the U.S. federal statutory corporate rate to income from continuing operations before provision for income taxes as follows (in thousands): Year Ended December 31, 2018 2017 2016 Provision at the statutory rate $ 96,110 $ 123,815 $ 107,690 Increases (decreases) resulting from — Tax Cuts and Jobs Act (6,295 ) (70,129 ) — State taxes 18,504 17,920 6,479 Foreign taxes 2,734 (16,958 ) 1,860 Contingency reserves, net (2,619 ) 3,651 (13,540 ) Production activity deduction — (1,504 ) (8,586 ) Employee per diems, meals and entertainment 11,949 13,605 8,764 Taxes on unincorporated joint ventures (578 ) (1,354 ) (656 ) Asset impairments — — 1,909 Entity restructuring and recapitalization efforts (4,424 ) (26,668 ) — Equity compensation (1,449 ) (5,095 ) — Valuation allowance - Foreign Tax Credits 43,507 — — Other 4,220 (1,751 ) 3,326 Total provision for income taxes from continuing operations $ 161,659 $ 35,532 $ 107,246 |
Deferred Tax Assets and Liabilities and Net Deferred Income Tax Assets and Liabilities | The tax effects of these temporary differences, representing deferred tax assets and liabilities, result principally from the following (in thousands): December 31, 2018 2017 Deferred income tax liabilities: Property and equipment $ (178,090 ) $ (161,491 ) Goodwill (60,305 ) (49,407 ) Other intangibles (21,034 ) (26,676 ) Customer holdbacks (44,173 ) (36,218 ) Other book/tax accounting method differences (7,247 ) (17,967 ) Total deferred income tax liabilities (310,849 ) (291,759 ) Deferred income tax assets: Accruals and reserves 28,594 21,419 Stock and incentive compensation 20,627 17,676 Net operating loss carryforwards 52,406 62,925 Tax credits 43,572 48,516 Deferred profit on investment in unconsolidated affiliates 16,021 2,813 Other 15,054 4,747 Subtotal 176,274 158,096 Valuation allowance (67,601 ) (19,328 ) Total deferred income tax assets 108,673 138,768 Total net deferred income tax liabilities $ (202,176 ) $ (152,991 ) The net deferred income tax assets and liabilities were comprised of the following in the accompanying consolidated balance sheets (in thousands): December 31, 2018 2017 Deferred income taxes: Assets $ 16,939 $ 26,390 Liabilities (219,115 ) (179,381 ) Total net deferred income tax liabilities $ (202,176 ) $ (152,991 ) |
Reconciliation of Unrecognized Tax Benefit | A reconciliation of unrecognized tax benefit balances is as follows (in thousands): December 31, 2018 2017 2016 Balance at beginning of year $ 36,229 $ 35,240 $ 54,541 Additions based on tax positions related to the current year 6,231 7,040 4,227 Additions for tax positions of prior years 9,377 3,372 2,048 Reductions for tax positions of prior years (2,870 ) (1,171 ) (1,948 ) Reductions for audit settlements — — (180 ) Reductions resulting from a lapse of the applicable statute of limitations periods (7,857 ) (8,252 ) (23,448 ) Balance at end of year $ 41,110 $ 36,229 $ 35,240 |
Balances of Unrecognized Tax Benefits | The balances of unrecognized tax benefits, the amount of related interest and penalties and what Quanta believes to be the range of reasonably possible changes in the next 12 months are as follows (in thousands): December 31, 2018 2017 2016 Unrecognized tax benefits $ 41,110 $ 36,229 $ 35,240 Portion that, if recognized, would reduce tax expense and effective tax rate 40,977 35,561 33,128 Accrued interest on unrecognized tax benefits 5,459 5,368 5,539 Accrued penalties on unrecognized tax benefits 631 631 650 Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months $0 to $9,541 $0 to $13,655 $0 to $12,332 Portion that, if recognized, would reduce tax expense and effective tax rate $0 to $8,224 $0 to $12,483 $0 to $10,983 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock and RSU to be Settled in Common Stock Activity | A summary of the activity for RSUs to be settled in common stock for the year ended December 31, 2018 is as follows (shares in thousands): Shares Weighted Average Grant Date Fair Value (Per share) Unvested at December 31, 2017 2,600 $30.42 Granted 1,625 $34.37 Vested (1,370 ) $28.88 Forfeited (221 ) $32.27 Unvested at December 31, 2018 2,634 $33.50 |
Grant Date Fair Value for Awards of Performance Units Inputs | The grant date fair values for awards of performance units with market-based metrics, which were granted in the years ended December 31, 2018 and 2017 , were determined using a Monte Carlo simulation valuation methodology using the following key inputs: 2018 2017 Valuation date stock price based on the February 28, 2018 and March 22, 2017 closing stock prices $34.44 $36.31 Expected volatility 34 % 36 % Risk-free interest rate 2.39 % 1.46 % Term in years 2.84 2.78 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Summary of Plan Information Relating to Participation in Multiemployer Pension Plans | The following table summarizes plan information relating to Quanta’s participation in multiemployer defined benefit pension plans, including company contributions for the last three years, the status under the PPA of the plans and whether the plans are subject to a funding improvement or rehabilitation plan or contribution surcharges. The most recent PPA zone status available in 2018 and 2017 relates to the plan’s fiscal year-end in 2017 and 2016 . Forms 5500 were not yet available for the plan years ending in 2018 . The PPA zone status is based on information that Quanta received from the respective plans, as well as publicly available information on the U.S. Department of Labor website, and is certified by the plan’s actuary. Although multiple factors or tests may result in red zone or yellow zone status, plans in the red zone generally are less than 65 percent funded, plans in the yellow zone generally are less than 80 percent funded, and plans in the green zone generally are at least 80 percent funded. Under the PPA, red zone plans are classified as “critical” status, yellow zone plans are classified as “endangered” status and green zone plans are classified as neither “endangered” nor “critical” status. The “Subject to Financial Improvement/ Rehabilitation Plan” column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented. The last column lists the expiration dates of Quanta’s collective-bargaining agreements to which the plans are subject. Total contributions to these plans correspond to the number of union employees employed at any given time and the plans in which they participate and vary depending upon the location and number of ongoing projects at a given time and the need for union resources in connection with such projects. Information has been presented separately for individually significant plans, based on PPA funding status classification, and in the aggregate for all other plans. Employee Identification Number/ Pension Plan Number PPA Zone Status Subject to Financial Improve- ment/ Reha- bilitation Plan Contributions (in thousands) Sur-charge Imposed Expiration Date of Collective Bargaining Agreement Fund 2018 2017 2018 2017 2016 National Electrical Benefit Fund 53-0181657-001 Green Green No $ 35,399 $ 29,161 $ 22,912 No Varies through May 2022 Pipeline Industry Pension Fund 73-6146433-001 Green Green No 10,132 13,585 6,954 No Varies through May 2020 Central Pension Fund of the IUOE & Participating Employers 36-6052390-001 Green Green No 9,246 12,176 5,668 No Varies through December 2020 Laborers Pension Trust Fund for Northern California 94-6277608-001 Yellow Yellow Yes 3,652 3,387 3,805 Yes Varies through May 2020 International Union of Operating Engineers Local 132 Pension Fund 55-6015364-001 Green Green No 3,367 222 42 No May 2020 Eighth District Electrical Pension Fund 84-6100393-001 Green Green No 3,332 3,208 3,089 No Varies through December 2020 West Virginia Laborers Pension Trust Fund 55-6026775-001 Green Green No 3,321 509 129 No May 2020 Teamsters National Pipe Line Pension Plan 46-1102851-001 Green Green No 3,318 3,602 1,661 No Varies through December 2020 Plumbers and Pipefitters National Pension Fund 52-6152779-001 Yellow Yellow No 2,734 1,273 1,666 No Varies through March 2021 Locals 302 & 612 of the IUOE-Employers Construction Industry Retirement Plan 91-6028571-001 Green Green No 2,620 2,194 2,269 No May 2021 Operating Engineers Local 324 Pension Fund 38-1900637-001 Red Red Yes 2,310 1,969 1,291 Yes Varies through December 2020 Alaska Electrical Pension Plan 92-6005171-001 Green Green No 2,287 2,143 2,701 No Varies through December 2019 Laborers National Pension Fund 75-1280827-001 Red Green Yes 2,051 3,049 1,358 Yes Varies through December 2020 OE Pension Trust Fund 94-6090764-001 Red Red Yes 1,922 1,703 1,508 Yes Varies through June 2020 Employer-Teamsters Local Nos 175 & 505 Pension Trust Fund 55-6021850-001 Red Red Yes 1,209 50 — Yes May 2020 Laborers District Council of W PA Pension Fund 25-6135576-001 Red Red Yes 1,029 418 876 Yes May 2020 Alaska Laborers - Employers Retirement Fund 91-6028298-001 Yellow Yellow Yes 411 536 1,216 No December 2018 Alaska Teamster Employer Pension Plan 92-6003463-024 Red Red Yes 197 255 659 No December 2018 All other plans - U.S. 29,136 21,365 26,869 All other plans - Canada (1) 8,518 9,277 562 Total $ 126,191 $ 110,082 $ 85,235 (1) Multiemployer defined benefit pension plans in Canada are not subject to the reporting requirements under the PPA. Accordingly, certain information was not publicly available. Quanta’s contributions to the following individually significant plans were five percent or more of the total contributions to these plans for the periods indicated based on the Forms 5500 for these plans for the years ended December 31, 2017 and 2016 . Forms 5500 were not yet available for these plans for the year ended December 31, 2018 . Pension Fund Plan Years in which Quanta Contributions Were Five Percent or More of Total Plan Contributions Pipeline Industry Pension Fund 2017 and 2016 Eighth District Electrical Pension Fund 2017 and 2016 Teamsters National Pipe Line Pension Plan 2017 and 2016 Local 697 IBEW and Electrical Industry Pension Fund 2017 and 2016 IBEW Local 456 Pension Plan 2017 and 2016 National Electrical Benefit Fund 2017 Local Union 400 IBEW Pension Plan 2017 IBEW 648 Pension Plan 2017 Laborers Local 57 Industrial Pension Plan 2017 Local Union No. 9 IBEW and Outside Contractors Pension Fund 2016 Alaska Plumbing and Pipefitting Industry Pension Fund 2016 Alaska Electrical Pension Plan 2016 Michigan Electrical Employees’ Pension Plan 2016 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Lease Payments | Quanta may decide to cancel or terminate a lease before the end of its term, in which case it is typically liable to the lessor for the remaining lease payments under the term of the lease. The following schedule shows the future minimum lease payments under these operating leases as of December 31, 2018 (in thousands): Year Ending December 31: 2019 $ 124,530 2020 81,189 2021 55,827 2022 34,337 2023 21,450 Thereafter 37,217 Total minimum lease payments $ 354,550 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summarized Financial Information | Summarized financial information for Quanta’s reportable segments is presented in the following table (in thousands): Year Ended December 31, 2018 2017 2016 Revenues: Electric Power Infrastructure Services $ 6,415,562 $ 5,599,836 $ 4,850,495 Pipeline and Industrial Infrastructure Services 4,755,861 3,866,642 2,800,824 Consolidated $ 11,171,423 $ 9,466,478 $ 7,651,319 Operating income (loss) : Electric Power Infrastructure Services $ 628,286 $ 518,130 $ 395,745 Pipeline and Industrial Infrastructure Services 204,178 184,083 149,502 Corporate and non-allocated costs (292,195 ) (323,364 ) (224,434 ) Consolidated $ 540,269 $ 378,849 $ 320,813 Depreciation: Electric Power Infrastructure Services $ 96,300 $ 91,708 $ 91,269 Pipeline and Industrial Infrastructure Services 89,046 76,355 67,374 Corporate and non-allocated costs 17,173 15,745 11,597 Consolidated $ 202,519 $ 183,808 $ 170,240 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Net Effect of Changes in Operating Assets and Liabilities, Net Of Non-Cash Transactions, On Cash Flows From Operating Activities of Continuing Operations | The net effects of changes in operating assets and liabilities, net of non-cash transactions, on cash flows from operating activities of continuing operations are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Accounts and notes receivable $ (475,919 ) $ (425,313 ) $ 144,877 Contract assets (92,838 ) 15,999 (152,702 ) Inventories (28,131 ) 14,110 (9,905 ) Prepaid expenses and other current assets (40,187 ) (32,079 ) 25,133 Accounts payable and accrued expenses and other non-current liabilities 247,897 28,547 81,246 Contract liabilities (23 ) 139,114 (124,680 ) Other, net (11,332 ) 17,858 (12,635 ) Net change in operating assets and liabilities, net of non-cash transactions $ (400,533 ) $ (241,764 ) $ (48,666 ) |
Additional Supplemental Cash Flow Information | A reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of such amounts shown in the statements of cash flows are as follows (in thousands). December 31, 2018 2017 2016 2015 Cash and cash equivalents 78,687 138,285 $ 112,183 $ 128,771 Restricted cash included in “Prepaid expenses and other current assets” 3,286 5,106 1,709 — Restricted cash included in “Other assets, net” 1,283 384 518 — Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 83,256 $ 143,775 $ 114,410 $ 128,771 Restricted cash includes any cash that is legally restricted as to withdrawal or usage. Additional supplemental cash flow information is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Cash (paid) received during the period for - Interest paid related to continuing operations $ (34,935 ) $ (19,373 ) $ (12,828 ) Income taxes paid related to continuing operations $ (112,895 ) $ (112,335 ) $ (121,662 ) Income taxes paid related to discontinued operations $ — $ — $ (7,260 ) Income tax refunds related to continuing operations $ 5,209 $ 9,845 $ 7,548 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Consolidated Operating Results by Quarter | The table below sets forth the unaudited consolidated operating results by quarter for the years ended December 31, 2018 and 2017 (in thousands, except per share information). For the Three Months Ended March 31, June 30, September 30, December 31, 2018: Revenues $ 2,417,576 $ 2,656,348 $ 2,985,281 $ 3,112,218 Gross profit 301,048 333,371 425,830 419,715 Net income 38,611 74,706 124,899 57,791 Net income from continuing operations attributable to common stock 37,614 74,365 124,551 56,816 Basic earnings per share from continuing operations attributable to common stock $ 0.24 $ 0.49 $ 0.82 $ 0.38 Diluted earnings per share from continuing operations attributable to common stock $ 0.24 $ 0.48 $ 0.81 $ 0.38 2017: Revenues $ 2,178,170 $ 2,200,374 $ 2,609,307 $ 2,478,627 Gross profit 266,188 302,165 350,631 322,876 Net income 48,440 64,360 89,849 115,576 Net income from continuing operations attributable to common stock 48,267 63,837 89,313 113,561 Basic earnings per share from continuing operations attributable to common stock $ 0.31 $ 0.41 $ 0.57 $ 0.72 Diluted earnings per share from continuing operations attributable to common stock $ 0.31 $ 0.41 $ 0.56 $ 0.72 |
Business and Organization (Deta
Business and Organization (Details) | 12 Months Ended | |
Dec. 31, 2018Segment | Dec. 31, 2016Acquisition | |
Organization And Description Of Business [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Acquisitions 2,016 | ||
Organization And Description Of Business [Line Items] | ||
Number of business acquisitions | Acquisition | 5 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Reduction to retained earnings due to adoption of new guidance | $ (2,477,291) | $ (2,191,059) | $ (2,477,291) | $ (2,191,059) | |||||||||
Additional revenues that would have been recognized under previous guidance | 3,112,218 | $ 2,985,281 | $ 2,656,348 | $ 2,417,576 | 2,478,627 | $ 2,609,307 | $ 2,200,374 | $ 2,178,170 | 11,171,423 | 9,466,478 | $ 7,651,319 | ||
Remaining performance obligation | 4,680,000 | 4,680,000 | |||||||||||
Revenues recognized related to change orders and claims | 121,800 | 144,000 | 121,800 | 144,000 | |||||||||
Change in contract estimates, favorable (unfavorable) impact on revenues | 71,900 | ||||||||||||
Revenue recognized related to amounts in contract liabilities outstanding at the beginning of period | $ 400,000 | ||||||||||||
Percent of total revenues recognized associated with revenue recognition method | 57.70% | ||||||||||||
Unearned revenues | $ 40,083 | 15,967 | $ 40,083 | 15,967 | |||||||||
EPC Electric Transmission Project | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Change in contract estimates, favorable (unfavorable) impact on operating results | (52,200) | ||||||||||||
$150 Million Lump-Sum Processing Facility Construction Project | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Change in contract estimates, favorable (unfavorable) impact on operating results | $ 34,200 | ||||||||||||
Percentage of completion | 88.00% | 88.00% | |||||||||||
Lump-sum amount | $ 150,000 | $ 150,000 | |||||||||||
Electric Power Project | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Change in contract estimates, favorable (unfavorable) impact on operating results | $ 22,300 | ||||||||||||
Percentage of completion | 86.00% | 86.00% | |||||||||||
Lump-sum amount | $ 75,000 | $ 75,000 | |||||||||||
$50 Million Lump Sum Natural Gas Pipeline Construction Project | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Change in contract estimates, favorable (unfavorable) impact on operating results | $ 17,300 | ||||||||||||
Percentage of completion | 99.00% | 99.00% | |||||||||||
Lump-sum amount | $ 50,000 | $ 50,000 | |||||||||||
Accounts Payable and Accrued Expenses | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Unearned revenues | $ 40,100 | $ 16,000 | 40,100 | $ 16,000 | |||||||||
Accounting Standards Update 2014-09 | Adjustment Due to Adoption of New Guidance | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Reduction to retained earnings due to adoption of new guidance | $ 1,300 | ||||||||||||
Reduction to retained earnings due to adoption of new guidance, gross adjustment | $ 1,800 | ||||||||||||
Reduction to retained earnings due to adoption of new guidance, tax | $ 500 | ||||||||||||
Additional revenues that would have been recognized under previous guidance | $ 2,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | Dec. 31, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent of remaining performance obligation expected to be recognized | 66.20% |
Recognition period for remaining performance obligation | 12 months |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue Disaggregated by Geographic Location and Contract Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 3,112,218 | $ 2,985,281 | $ 2,656,348 | $ 2,417,576 | $ 2,478,627 | $ 2,609,307 | $ 2,200,374 | $ 2,178,170 | $ 11,171,423 | $ 9,466,478 | $ 7,651,319 |
Percentage of total revenues | 100.00% | ||||||||||
Unit-price contracts | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 3,828,997 | ||||||||||
Percentage of total revenues | 34.30% | ||||||||||
Fixed price contracts | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 4,835,401 | ||||||||||
Percentage of total revenues | 43.30% | ||||||||||
Cost-plus contracts | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 2,507,025 | ||||||||||
Percentage of total revenues | 22.40% | ||||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 8,575,341 | ||||||||||
Percentage of total revenues | 76.70% | ||||||||||
Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 1,984,214 | ||||||||||
Percentage of total revenues | 17.80% | ||||||||||
Australia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 377,453 | ||||||||||
Percentage of total revenues | 3.40% | ||||||||||
Latin America and Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 234,415 | ||||||||||
Percentage of total revenues | 2.10% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Contract assets | $ 576,891 | $ 497,292 |
Contract liabilities | $ 425,961 | $ 433,387 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 78,687 | $ 138,285 | $ 112,183 | $ 128,771 |
Cash equivalents | 37,200 | 7,100 | ||
Held in Domestic Bank Accounts | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 62,495 | 83,074 | ||
Held in Foreign Bank Accounts | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 16,192 | 55,211 | ||
Held by Joint Ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 8,985 | 16,657 | ||
Held by Domestic Joint Ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 8,544 | 10,042 | ||
Held by Foreign Joint Ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 441 | 6,615 | ||
Not Held by Joint Ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 69,702 | $ 121,628 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Current and Long-Term Accounts and Notes Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Allowances for doubtful accounts on current receivable | $ 5,839 | $ 4,465 |
Current retainage balances | 337,100 | 300,500 |
Non-current retainage balances | 99,600 | 41,900 |
Unbilled receivables | $ 434,900 | $ 303,900 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense related to property and equipment | $ 202,519 | $ 183,808 | $ 170,240 |
Accrued capital expenditures | 2,700 | $ 9,600 | |
Impairment of long-lived assets to be disposed of | 49,400 | $ 8,000 | |
Marine Operation Assets | Held-for-Sale | |||
Property, Plant and Equipment [Line Items] | |||
Estimated fair value of assets in the process of being sold | $ 14,000 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Debt Issuance and Amendment Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Debt issuance costs related to amendment | $ 1,976 | $ 1,507 | $ 0 |
Capitalized debt issuance costs | 14,900 | 12,900 | |
Accumulated amortization of debt issuance costs | 8,600 | 7,400 | |
Amortization expense related to capitalized debt issuance costs | $ 1,270 | $ 1,321 | $ 1,356 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Goodwill (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)Divisions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill And Intangible Assets [Line Items] | |||||
Number of internal divisions | Divisions | 2 | ||||
Non-cash charge for impairment of goodwill | $ 57,000 | $ 57,011 | |||
Decrease in fair value of reporting units considered for impairment calculation | 10.00% | ||||
Goodwill | 1,868,600 | $ 1,899,879 | 1,868,600 | $ 1,603,169 | $ 1,552,658 |
Intangible assets | $ 263,179 | 280,180 | $ 263,179 | ||
Pipeline and Industrial Infrastructure Division Operating Units that have been Negatively Impacted by Various Factors | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Goodwill | 48,000 | ||||
Intangible assets | $ 11,100 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Significant Estimates Used by Management in Determining Fair Values of Company's Reporting Units (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||
Years of cash flows before terminal value | 5 years | 5 years | 5 years |
Discounted cash flows | 70.00% | 70.00% | 70.00% |
Market multiple | 15.00% | 15.00% | 15.00% |
Market capitalization | 15.00% | 15.00% | 15.00% |
Weighted Average Cost of Capital | Minimum | |||
Goodwill [Line Items] | |||
Measurement input | 0.120 | 0.120 | 0.125 |
Weighted Average Cost of Capital | Maximum | |||
Goodwill [Line Items] | |||
Measurement input | 0.150 | 0.140 | 0.145 |
Transaction Multiples Applied to EBITDA | Minimum | |||
Goodwill [Line Items] | |||
Measurement input | 6.5 | 5.5 | 5.5 |
Transaction Multiples Applied to EBITDA | Maximum | |||
Goodwill [Line Items] | |||
Measurement input | 9 | 7 | 7 |
Guideline Public Company Multiples Applied to EBITDA | Minimum | |||
Goodwill [Line Items] | |||
Measurement input | 6.5 | 6.5 | 5.5 |
Guideline Public Company Multiples Applied to EBITDA | Maximum | |||
Goodwill [Line Items] | |||
Measurement input | 9.5 | 8 | 7 |
Compounded Revenue Growth Rates | Minimum | |||
Goodwill [Line Items] | |||
Measurement input | (0.14) | (0.14) | (0.02) |
Compounded Revenue Growth Rates | Maximum | |||
Goodwill [Line Items] | |||
Measurement input | 0.08 | 0.17 | 0.24 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Significant Estimates Used by Management in Determining Fair Values of Customer Relationships Acquired (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum | |||
Goodwill And Intangible Assets [Line Items] | |||
Discount rates | 20.00% | 17.00% | 20.00% |
Customer attrition rates | 20.00% | 15.00% | 10.00% |
Maximum | |||
Goodwill And Intangible Assets [Line Items] | |||
Discount rates | 27.00% | 25.00% | 23.00% |
Customer attrition rates | 33.00% | 78.00% | 70.00% |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Other Intangible Assets (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Impairment charges related to customer relationship intangible asset | $ 1.1 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Investments in Affiliates and Other Entities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2018 | |
Water and Gas Pipeline Infrastructure Contractor | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Equity interest acquired | 30.00% | |
Cash subscription price | $ 22.2 | |
Cash dividends received from investment | $ 3.9 | |
Electric Power Infrastructure Services Company | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Payment to acquire equity interest and customer relationship and other intangible assets | $ 12.3 | |
Equity interest | 49.00% | |
Capital for Infrastructure Projects | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Capital provided to investors | $ 80 | |
Infrastructure Investors Partnership | Capital for Infrastructure Projects | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Capital provided to investors | $ 1,000 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | ||||
Total amount of unrecognized tax benefits relating to uncertain tax positions | $ 41,110 | $ 36,229 | $ 35,240 | $ 54,541 |
Increase (decrease) in the total amount of unrecognized tax benefits relating to uncertain tax positions | 4,900 | |||
Unrecognized tax benefits, increase from current period tax positions | 6,231 | 7,040 | 4,227 | |
Unrecognized tax benefits, net increase from prior year tax positions | 6,500 | |||
Reductions resulting from a lapse of the applicable statute of limitations periods | 7,857 | 8,252 | 23,448 | |
Maximum | ||||
Income Tax Examination [Line Items] | ||||
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | $ 9,541 | $ 13,655 | $ 12,332 |
Summary of Significant Accou_18
Summary of Significant Accounting Policies - Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Number of shares of Common stock received for each exchangeable share (in shares) | 1 | ||
Weighted average shares outstanding attributable to participating securities (in shares) | 2,600,000 | 2,300,000 | 2,600,000 |
Summary of Significant Accou_19
Summary of Significant Accounting Policies - Insurance (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Accounting Policies [Abstract] | |
Employer's liability claims subject to deductible per occurrence | $ 1,000,000 |
Worker's compensation claims per occurrence | 5,000,000 |
Auto liability insurance claims deductible | 10,000,000 |
General liability insurance claims deductible | 10,000,000 |
Employee health care benefit plans subject to deductible per claimant | $ 500,000 |
Summary of Significant Accou_20
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2018shares | |
Restricted Stock Units to be Settled in Cash | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amount in cash received for each RSU is equal to the fair value of this number of Quanta common stock shares (in shares) | 1 |
Summary of Significant Accou_21
Summary of Significant Accounting Policies - Fair Value Measurements (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate maximum payout amount | $ 157.2 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of contingent consideration liability | 70.8 | $ 65.7 |
Decrease in the fair value of contingent consideration liabilities | (11.2) | $ (5.2) |
Level 3 | Acquisition Without Maximum Earn-out | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of contingent consideration liability | $ 1 | |
Level 3 | Volatility | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected volatility rate | 0.222 | |
Level 3 | Volatility | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected volatility rate | 0.300 | |
Level 3 | Discount Rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected volatility rate | 0.021 | |
Level 3 | Discount Rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected volatility rate | 0.038 |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Reduction to retained earnings due to adoption of new guidance | $ (2,477,291) | $ (2,191,059) | $ (2,477,291) | $ (2,191,059) | |||||||||
Additional revenues that would have been recognized under previous guidance | $ 3,112,218 | $ 2,985,281 | $ 2,656,348 | $ 2,417,576 | $ 2,478,627 | $ 2,609,307 | $ 2,200,374 | $ 2,178,170 | 11,171,423 | $ 9,466,478 | $ 7,651,319 | ||
Accounting Standards Update 2014-09 | Adjustment Due to Adoption of New Guidance | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Reduction to retained earnings due to adoption of new guidance | $ 1,300 | ||||||||||||
Reduction to retained earnings due to adoption of new guidance, gross adjustment | $ 1,800 | ||||||||||||
Reduction to retained earnings due to adoption of new guidance, tax | 500 | ||||||||||||
Additional revenues that would have been recognized under previous guidance | $ 2,000 | ||||||||||||
Accounting Standards Update 2016-02 | Minimum | Subsequent Event | Forecast | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Lease right-of-use asset | 280,000 | ||||||||||||
Lease liabilities | 280,000 | ||||||||||||
Accounting Standards Update 2016-02 | Maximum | Subsequent Event | Forecast | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Lease right-of-use asset | 320,000 | ||||||||||||
Lease liabilities | $ 320,000 |
Acquisitions - 2018 Acquisition
Acquisitions - 2018 Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Potential payment (up to) | $ 157,200 | ||
Goodwill | 56,337 | $ 302,408 | $ 45,186 |
2018 Acquisitions | |||
Business Acquisition [Line Items] | |||
Cash paid or payable | $ 106,804 | ||
Number of shares granted for acquired companies (in shares) | 679,668 | ||
Value of Quanta common stock issued | $ 22,882 | ||
Potential payment (up to) | 18,000 | ||
Fair value of contingent consideration liability | 16,471 | ||
Net tangible assets acquired | 37,500 | ||
Identifiable intangible assets | 52,364 | ||
Goodwill | $ 56,337 | ||
2018 Acquisitions | Minimum | |||
Business Acquisition [Line Items] | |||
Contingent consideration financial target term | 5 years | ||
2018 Acquisitions | Maximum | |||
Business Acquisition [Line Items] | |||
Contingent consideration financial target term | 3 years |
Acquisitions - 2017 Acquisition
Acquisitions - 2017 Acquisitions (Details) - USD ($) $ in Thousands | Jul. 20, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Contingent consideration payments (up to) | $ 157,200 | ||
Stronghold | |||
Business Acquisition [Line Items] | |||
Cash paid or payable | $ 351,000 | ||
Number of shares granted for acquired companies (in shares) | 2,693,680 | ||
Value of Quanta common stock issued | $ 81,300 | $ 81,337 | |
Contingent consideration payments (up to) | $ 100,000 | ||
Contingent consideration financial target term | 3 years | ||
Fair value of contingent consideration liability | $ 51,100 | 51,084 | |
Other Acquisitions | |||
Business Acquisition [Line Items] | |||
Cash paid or payable | $ 12,000 | ||
Number of shares granted for acquired companies (in shares) | 288,666 | ||
Value of Quanta common stock issued | 8,267 | ||
Fair value of contingent consideration liability | $ 0 |
Acquisitions - 2016 Acquisition
Acquisitions - 2016 Acquisitions (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)Acquisitionshares | Dec. 31, 2018USD ($) | |
Business Acquisition [Line Items] | ||
Contingent consideration payments (up to) | $ 157.2 | |
2016 Acquisitions | ||
Business Acquisition [Line Items] | ||
Number of business acquisitions | Acquisition | 5 | |
Cash paid or payable | $ 75.9 | |
Number of shares granted for acquired companies (in shares) | shares | 70,840 | |
Value of Quanta common stock issued | $ 1.5 | |
Contingent consideration payments (up to) | 39.5 | |
Fair value of contingent consideration liability | $ 18.7 | |
2016 Acquisitions | Electric Power Infrastructure Services Business | ||
Business Acquisition [Line Items] | ||
Number of business acquisitions | Acquisition | 4 |
Acquisitions - Summary of Aggre
Acquisitions - Summary of Aggregate Consideration Paid or Payable and Allocation of Amounts to the Net Tangible and Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 20, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 56,337 | $ 302,408 | $ 45,186 | |
All Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Cash paid or payable | 106,804 | |||
Value of Quanta common stock issued | 22,882 | |||
Contingent consideration | 16,471 | |||
Fair value of total consideration transferred or estimated to be transferred | 146,157 | |||
Accounts receivable | 18,405 | |||
Contract assets | 1,905 | |||
Other current assets | 8,484 | |||
Property and equipment | 23,674 | |||
Other assets | 576 | |||
Identifiable intangible assets | 52,364 | |||
Contract liabilities | (175) | |||
Other current liabilities | (11,205) | |||
Deferred tax liabilities, net | (4,208) | |||
Other long-term liabilities | 0 | |||
Total identifiable net assets | 89,820 | |||
Goodwill | 56,337 | |||
Fair value of total consideration transferred or estimated to be transferred | $ 146,157 | |||
Stronghold | ||||
Business Acquisition [Line Items] | ||||
Cash paid or payable | 351,014 | |||
Value of Quanta common stock issued | $ 81,300 | 81,337 | ||
Contingent consideration | $ 51,100 | 51,084 | ||
Fair value of total consideration transferred or estimated to be transferred | 483,435 | |||
Accounts receivable | 77,478 | |||
Contract assets | 11,913 | |||
Other current assets | 20,914 | |||
Property and equipment | 51,258 | |||
Other assets | 1,513 | |||
Identifiable intangible assets | 95,700 | |||
Contract liabilities | (13,489) | |||
Other current liabilities | (58,346) | |||
Deferred tax liabilities, net | 0 | |||
Other long-term liabilities | (48) | |||
Total identifiable net assets | 186,893 | |||
Goodwill | 296,542 | |||
Fair value of total consideration transferred or estimated to be transferred | 483,435 | |||
Other Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Cash paid or payable | 11,955 | |||
Value of Quanta common stock issued | 8,267 | |||
Contingent consideration | 0 | |||
Fair value of total consideration transferred or estimated to be transferred | 20,222 | |||
Accounts receivable | 7,157 | |||
Contract assets | 193 | |||
Other current assets | 170 | |||
Property and equipment | 1,480 | |||
Other assets | 12 | |||
Identifiable intangible assets | 8,091 | |||
Contract liabilities | (93) | |||
Other current liabilities | (2,705) | |||
Deferred tax liabilities, net | 0 | |||
Other long-term liabilities | 0 | |||
Total identifiable net assets | 14,305 | |||
Goodwill | 5,917 | |||
Fair value of total consideration transferred or estimated to be transferred | $ 20,222 |
Acquisitions - 2018, 2017 and 2
Acquisitions - 2018, 2017 and 2016 Acquisitions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
2018 Acquisitions | |||
Business Acquisition [Line Items] | |||
Goodwill expected to be deductible for income tax purposes | $ 20.1 | ||
Revenues included in consolidated results of operations | 71.1 | ||
Income from continuing operations before income taxes included in consolidated results of operations | (8.9) | ||
Acquisition-related costs | $ 11 | ||
2017 Acquisitions | |||
Business Acquisition [Line Items] | |||
Goodwill expected to be deductible for income tax purposes | $ 251.4 | ||
Revenues included in consolidated results of operations | 207.4 | ||
Income from continuing operations before income taxes included in consolidated results of operations | 8.1 | ||
Acquisition-related costs | $ 5.4 | ||
2016 Acquisitions | |||
Business Acquisition [Line Items] | |||
Revenues included in consolidated results of operations | $ 68.5 | ||
Income from continuing operations before income taxes included in consolidated results of operations | 5.6 | ||
Acquisition-related costs | $ 0.3 |
Acquisitions - Estimated Fair V
Acquisitions - Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization (Details) - 2018 Acquisitions $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value | $ 52,364 |
Weighted average amortization period | 7 years 4 months 24 days |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value | $ 30,767 |
Weighted average amortization period | 5 years 3 months 18 days |
Backlog | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value | $ 2,158 |
Weighted average amortization period | 1 year |
Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value | $ 7,689 |
Weighted average amortization period | 15 years |
Non-compete agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value | $ 2,750 |
Weighted average amortization period | 5 years |
Curriculum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value | $ 9,000 |
Weighted average amortization period | 10 years |
Acquisitions - Unaudited Supple
Acquisitions - Unaudited Supplemental Pro Forma Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Combinations [Abstract] | |||
Revenues | $ 11,238,475 | $ 9,848,386 | $ 8,183,104 |
Gross profit | 1,506,125 | 1,356,515 | 1,129,661 |
Selling, general and administrative expenses | 865,452 | 842,996 | 734,900 |
Amortization of intangible assets | 49,262 | 49,918 | 46,579 |
Net income from continuing operations | 304,565 | 333,386 | 207,956 |
Net income from continuing operations attributable to common stock | $ 301,904 | $ 330,139 | $ 206,241 |
Earnings per share from continuing operations: | |||
Basic (in dollars per share) | $ 1.97 | $ 2.08 | $ 1.29 |
Diluted (in dollars per share) | $ 1.95 | $ 2.07 | $ 1.29 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Changes in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | $ 1,966,432 | $ 1,642,902 | $ 1,592,551 | |
Accumulated impairment, beginning balance | (97,832) | (39,733) | (39,893) | |
Goodwill net, beginning balance | 1,868,600 | 1,603,169 | 1,552,658 | |
Goodwill acquired | 56,337 | 302,408 | 45,186 | |
Purchase price allocation adjustments | 51 | (1,278) | 15 | |
Goodwill impairment | $ (57,000) | (57,011) | ||
Foreign currency translation adjustments | (25,109) | 21,312 | 5,310 | |
Goodwill gross, ending balance | 1,966,432 | 1,996,362 | 1,966,432 | 1,642,902 |
Accumulated impairment, ending balance | (97,832) | (96,483) | (97,832) | (39,733) |
Goodwill net, ending balance | 1,868,600 | 1,899,879 | 1,868,600 | 1,603,169 |
Electric Power Infrastructure Services Division | ||||
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | 1,272,527 | 1,253,979 | 1,226,245 | |
Accumulated impairment, beginning balance | 0 | 0 | 0 | |
Goodwill net, beginning balance | 1,272,527 | 1,253,979 | 1,226,245 | |
Goodwill acquired | 56,337 | 5,866 | 24,168 | |
Purchase price allocation adjustments | 51 | (619) | 229 | |
Goodwill impairment | 0 | |||
Foreign currency translation adjustments | (15,837) | 13,301 | 3,337 | |
Goodwill gross, ending balance | 1,272,527 | 1,313,078 | 1,272,527 | 1,253,979 |
Accumulated impairment, ending balance | 0 | 0 | 0 | 0 |
Goodwill net, ending balance | 1,272,527 | 1,313,078 | 1,272,527 | 1,253,979 |
Pipeline and Industrial Infrastructure Services Division | ||||
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | 693,905 | 388,923 | 366,306 | |
Accumulated impairment, beginning balance | (97,832) | (39,733) | (39,893) | |
Goodwill net, beginning balance | 596,073 | 349,190 | 326,413 | |
Goodwill acquired | 0 | 296,542 | 21,018 | |
Purchase price allocation adjustments | 0 | (659) | (214) | |
Goodwill impairment | (57,011) | |||
Foreign currency translation adjustments | (9,272) | 8,011 | 1,973 | |
Goodwill gross, ending balance | 693,905 | 683,284 | 693,905 | 388,923 |
Accumulated impairment, ending balance | (97,832) | (96,483) | (97,832) | (39,733) |
Goodwill net, ending balance | $ 596,073 | $ 586,801 | $ 596,073 | $ 349,190 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Reporting_Unit | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of reporting units impacted by impairment charge | Reporting_Unit | 2 | ||
Amortization of intangible assets | $ 43,994 | $ 32,205 | $ 31,685 |
Intangible asset impairment charges | $ 1,100 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 649,261 | $ 598,686 |
Accumulated Amortization | (372,081) | (335,507) |
Finite-Lived Intangible Assets, Net | $ 277,180 | 263,179 |
Remaining Weighted Average Amortization Period | 8 years | |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 652,261 | 598,686 |
Intangible Assets, Net | 280,180 | 263,179 |
Engineering license | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible Assets | 3,000 | 0 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | 359,967 | 327,334 |
Accumulated Amortization | (165,715) | (137,333) |
Finite-Lived Intangible Assets, Net | $ 194,252 | 190,001 |
Remaining Weighted Average Amortization Period | 6 years 2 months 12 days | |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 135,578 | 136,266 |
Accumulated Amortization | (134,592) | (135,847) |
Finite-Lived Intangible Assets, Net | $ 986 | 419 |
Remaining Weighted Average Amortization Period | 8 months 12 days | |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 81,058 | 74,797 |
Accumulated Amortization | (21,559) | (17,057) |
Finite-Lived Intangible Assets, Net | $ 59,499 | 57,740 |
Remaining Weighted Average Amortization Period | 15 years 4 months 24 days | |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 40,728 | 37,760 |
Accumulated Amortization | (30,168) | (27,659) |
Finite-Lived Intangible Assets, Net | $ 10,560 | 10,101 |
Remaining Weighted Average Amortization Period | 3 years 7 months 6 days | |
Patented rights and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 22,482 | 22,529 |
Accumulated Amortization | (19,175) | (17,611) |
Finite-Lived Intangible Assets, Net | $ 3,307 | 4,918 |
Remaining Weighted Average Amortization Period | 2 years 8 months 12 days | |
Curriculum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 9,448 | 0 |
Accumulated Amortization | (872) | 0 |
Finite-Lived Intangible Assets, Net | $ 8,576 | $ 0 |
Remaining Weighted Average Amortization Period | 9 years 1 month 6 days |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Future Aggregate Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 47,135 | |
2,020 | 44,980 | |
2,021 | 42,657 | |
2,022 | 39,129 | |
2,023 | 31,323 | |
Thereafter | 71,956 | |
Finite-Lived Intangible Assets, Net | $ 277,180 | $ 263,179 |
Per Share Information - Basic a
Per Share Information - Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts attributable to common stock: | |||||||||||
Net income from continuing operations | $ 56,816 | $ 124,551 | $ 74,365 | $ 37,614 | $ 113,561 | $ 89,313 | $ 63,837 | $ 48,267 | $ 293,346 | $ 314,978 | $ 198,725 |
Net loss from discontinued operations | 0 | 0 | (342) | ||||||||
Net income attributable to common stock | $ 293,346 | $ 314,978 | $ 198,383 | ||||||||
Weighted average shares: | |||||||||||
Weighted average shares outstanding for basic earnings per share attributable to common stock (in shares) | 152,963 | 156,124 | 157,287 | ||||||||
Effect of dilutive unvested non-participating stock-based awards (in shares) | 1,263 | 1,031 | 1 | ||||||||
Weighted average shares outstanding for diluted earnings per share attributable to common stock (in shares) | 154,226 | 157,155 | 157,288 |
Per Share Information - Narrati
Per Share Information - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Number of shares of Common stock received for each exchangeable share (in shares) | 1 | ||
Weighted average shares outstanding attributable to participating securities (in shares) | 2,600,000 | 2,300,000 | 2,600,000 |
Detail of Certain Balance She_3
Detail of Certain Balance Sheet Accounts - Current and Long-Term Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Balance at beginning of year | $ 4,465 | $ 2,752 | |
Charged to bad debt expense (recoveries of bad debt expense) | 7,169 | 87 | $ (543) |
Deductions for uncollectible receivables written off (recoveries of uncollectible receivables) | 1,626 | ||
Deductions for uncollectible receivables written off (recoveries of uncollectible receivables) | (5,795) | ||
Balance at end of year | $ 5,839 | $ 4,465 | $ 2,752 |
Detail of Certain Balance She_4
Detail of Certain Balance Sheet Accounts - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Land | $ 61,305 | $ 48,832 |
Buildings and leasehold improvements | 208,974 | 155,628 |
Operating equipment and vehicles | 1,865,917 | 1,834,715 |
Office equipment, furniture and fixtures and information technology systems | 212,769 | 170,115 |
Construction work in progress | 19,507 | 60,587 |
Property and equipment, gross | 2,368,472 | 2,269,877 |
Less — Accumulated depreciation and amortization | (1,092,440) | (981,275) |
Property and equipment, net | $ 1,276,032 | $ 1,288,602 |
Minimum | Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Minimum | Operating equipment and vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 1 year | |
Minimum | Office equipment, furniture and fixtures and information technology systems | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Maximum | Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 30 years | |
Maximum | Operating equipment and vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Maximum | Office equipment, furniture and fixtures and information technology systems | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years |
Detail of Certain Balance She_5
Detail of Certain Balance Sheet Accounts - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable, trade | $ 786,546 | $ 632,931 |
Accrued compensation and related expenses | 279,107 | 225,193 |
Accrued insurance, current portion | 56,552 | 64,112 |
Deferred revenues, current portion | 40,083 | 15,967 |
Income and franchise taxes payable | 13,094 | 19,635 |
Other accrued expenses | 139,138 | 99,622 |
Accounts payable and accrued expenses, total | $ 1,314,520 | $ 1,057,460 |
Debt Obligations - Long-term De
Debt Obligations - Long-term Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Borrowings under senior secured credit facility | $ 1,070,299 | $ 668,427 |
Other long-term debt, interest rate of 2.4% | 1,523 | 1,810 |
Capital leases, interest rates ranging from 2.5% to 3.8% | 934 | 1,704 |
Total long-term debt obligations | 1,072,756 | 671,941 |
Less — Current maturities of long-term debt | 32,224 | 1,220 |
Total long-term debt obligations, net of current maturities | $ 1,040,532 | $ 670,721 |
Other Long Term Debt | ||
Debt Instrument [Line Items] | ||
Capital leases and Other long-term debt interest rates | 2.40% | 2.40% |
Capital Lease Obligations | Minimum | ||
Debt Instrument [Line Items] | ||
Capital leases and Other long-term debt interest rates | 2.50% | 2.50% |
Capital Lease Obligations | Maximum | ||
Debt Instrument [Line Items] | ||
Capital leases and Other long-term debt interest rates | 3.80% | 3.80% |
Debt Obligations - Current Matu
Debt Obligations - Current Maturities of Long-Term Debt and Short-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Short-term debt | $ 33,422 | $ 0 |
Current maturities of long-term debt | 32,224 | 1,220 |
Current maturities of long-term debt and short-term debt | $ 65,646 | $ 1,220 |
Debt Obligations - Senior Secur
Debt Obligations - Senior Secured Credit Facility (Details) | Oct. 10, 2018USD ($) | Nov. 20, 2017USD ($) | Nov. 19, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Line of Credit Facility [Line Items] | |||||
Amount borrowed under the credit facility | $ 1,070,299,000 | $ 668,427,000 | |||
Letters Of Credit and Bank Guarantees | |||||
Line of Credit Facility [Line Items] | |||||
Letters of credit and bank guarantees under the credit facility | 412,900,000 | ||||
Senior Secured Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Option to increase revolving commitments under the credit agreement | $ 400,000,000 | ||||
Amount borrowed under the credit facility | 1,070,000,000 | ||||
Increase in maximum additional interest rates and fee percentages | 0.125% | ||||
Reduction in Quanta's funded indebtedness reduced by cash and cash equivalents in excess of this amount | $ 25,000,000 | ||||
Percentage of capital stock of direct foreign subsidiaries of wholly owned U.S. subsidiaries to secure credit agreement | 65.00% | ||||
Maximum consolidated leverage ratio | 3 | ||||
Acquisition threshold for leverage ratio | $ 200,000,000 | ||||
Maximum leverage ratio acquisition completed in current and two subsequent quarters | 3.5 | ||||
Minimum consolidated interest coverage ratio | 3 | ||||
Amount of availability under the credit agreement and/or cash and cash equivalents on hand that must be present to allow for cash payments of dividends and stock repurchases | $ 100,000,000 | ||||
Cross default provisions with debt instruments exceeding this amount | $ 150,000,000 | ||||
Senior Secured Credit Facility | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee | 0.20% | ||||
Senior Secured Credit Facility | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee | 0.40% | ||||
Senior Secured Credit Facility | Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.125% | ||||
Senior Secured Credit Facility | Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 2.00% | ||||
Senior Secured Credit Facility | Excess of Base Rate Domestic Borrowings Only | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.125% | ||||
Senior Secured Credit Facility | Excess of Base Rate Domestic Borrowings Only | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.00% | ||||
Senior Secured Credit Facility | Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.125% | ||||
Senior Secured Credit Facility | Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 2.00% | ||||
Senior Secured Credit Facility | Excess of Federal Funds Rate | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.50% | ||||
Senior Secured Credit Facility | Excess of Euro Currency Rate | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.00% | ||||
Senior Secured Credit Facility | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Senior secured revolving credit facility | 1,990,000,000 | ||||
Amount borrowed under the credit facility | 477,800,000 | ||||
Credit facility available for revolving loans or issuing new letters of credit | 1,090,000,000 | ||||
Senior Secured Credit Facility | Revolving Credit Facility | U.S. Dollars | |||||
Line of Credit Facility [Line Items] | |||||
Amount borrowed under the credit facility | 883,800,000 | ||||
Letters of credit and bank guarantees under the credit facility | 242,200,000 | ||||
Senior Secured Credit Facility | Revolving Credit Facility | Canadian Dollars | |||||
Line of Credit Facility [Line Items] | |||||
Amount borrowed under the credit facility | 102,600,000 | ||||
Senior Secured Credit Facility | Revolving Credit Facility | Australian Dollars | |||||
Line of Credit Facility [Line Items] | |||||
Amount borrowed under the credit facility | 83,900,000 | ||||
Senior Secured Credit Facility | Revolving Credit Facility | Canadian and Australian Dollars | |||||
Line of Credit Facility [Line Items] | |||||
Letters of credit and bank guarantees under the credit facility | 170,700,000 | ||||
Senior Secured Credit Facility | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Senior secured revolving credit facility | 600,000,000 | ||||
Amount borrowed under the credit facility | $ 592,500,000 | ||||
Required quarterly principal payment amount | $ 7,500,000 | ||||
Senior Secured Credit Facility | Term Loan | Excess of Eurocurrency Rate Based on Leverage Ratio | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.125% | ||||
Senior Secured Credit Facility | Term Loan | Excess of Eurocurrency Rate Based on Leverage Ratio | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.875% | ||||
Senior Secured Credit Facility | Revolving Loans and Letters of Credit | U.S. Dollars | |||||
Line of Credit Facility [Line Items] | |||||
Senior secured revolving credit facility | $ 600,000,000 | ||||
Senior Secured Credit Facility | Swing Lines Loan | U.S. Dollars | |||||
Line of Credit Facility [Line Items] | |||||
Senior secured revolving credit facility | 100,000,000 | ||||
Senior Secured Credit Facility | Swing Lines Loan | Canadian Dollars | |||||
Line of Credit Facility [Line Items] | |||||
Senior secured revolving credit facility | 50,000,000 | ||||
Senior Secured Credit Facility | Swing Lines Loan | Australian Dollars | |||||
Line of Credit Facility [Line Items] | |||||
Senior secured revolving credit facility | $ 50,000,000 | ||||
Senior Secured Credit Facility | Standby Letters of Credit | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.125% | ||||
Senior Secured Credit Facility | Standby Letters of Credit | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 2.00% | ||||
Senior Secured Credit Facility | Performance Letters of Credit | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.675% | ||||
Senior Secured Credit Facility | Performance Letters of Credit | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.15% |
Debt Obligations - Information
Debt Obligations - Information on Borrowings under Current and Prior Credit Facility and Applicable Interest Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||
Maximum amount outstanding under the credit facility during the period | $ 1,300,401 | $ 917,895 | $ 518,607 |
Average daily amount outstanding under the credit facility | $ 914,012 | $ 613,130 | $ 458,908 |
Weighted-average interest rate | 3.60% | 2.70% | 2.10% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Tax Act, one-time net tax benefit recorded | $ 70,100 | ||
Tax Act, benefits associated with re-measurement of deferred tax assets and liabilities | 85,300 | ||
Tax Act, transition tax expense on post-1986 earnings and profits of certain foreign subsidiaries | 15,200 | ||
Tax Act, additional benefit recorded related to remeasurement | $ 6,300 | ||
Valuation allowance against previously recognized foreign tax credits | 43,500 | ||
Tax Act, benefit associated with entity restructuring and recapitalization | 26,700 | ||
Tax Act, decrease in benefit associated with entity restructuring and recapitalization | 1,800 | ||
Tax Act, expense associated with acceleration of certain deductions | 8,500 | ||
Valuation allowance for deferred income tax assets | 67,601 | 19,328 | $ 15,000 |
Change in total valuation allowance | 48,300 | 4,300 | (1,100) |
Tax effect of state and foreign net operating loss carryforwards | 52,406 | 62,925 | |
2,019 | 200 | ||
2,020 | 1,700 | ||
2,021 | 500 | ||
2,022 | 200 | ||
2,023 | 1,300 | ||
Thereafter | 53,200 | ||
Valuation allowance foreign and state net operating loss carryforwards | 21,900 | ||
Reduction due to expiration of certain federal and state statutes of limitations | 7,857 | 8,252 | 23,448 |
Interest and penalties expense (income) in the provision for income taxes | 100 | $ 200 | $ 3,200 |
Gross Amount Before Balance Sheet Presentation Netting | |||
Income Taxes [Line Items] | |||
Tax effect of state and foreign net operating loss carryforwards | $ 57,100 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income (loss) from continuing operations before income taxes: | |||
Domestic | $ 318,635 | $ 291,031 | $ 349,959 |
Foreign | 139,031 | 62,726 | (42,273) |
Income from continuing operations before income taxes | $ 457,666 | $ 353,757 | $ 307,686 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 50,306 | $ 44,695 | $ 106,316 |
State | 26,170 | 301 | 11,549 |
Foreign | 23,209 | 22,666 | 5,076 |
Total current tax provision | 99,685 | 67,662 | 122,941 |
Deferred: | |||
Federal | 62,482 | (36,915) | (264) |
State | (4,152) | 14,951 | (923) |
Foreign | 3,644 | (10,166) | (14,508) |
Total deferred tax provision (benefit) | 61,974 | (32,130) | (15,695) |
Total provision for income taxes from continuing operations | $ 161,659 | $ 35,532 | $ 107,246 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Provision at the statutory rate | $ 96,110 | $ 123,815 | $ 107,690 |
Increases (decreases) resulting from — | |||
Tax Cuts and Jobs Act | (6,295) | (70,129) | 0 |
State taxes | 18,504 | 17,920 | 6,479 |
Foreign taxes | 2,734 | (16,958) | 1,860 |
Contingency reserves, net | (2,619) | 3,651 | (13,540) |
Production activity deduction | 0 | (1,504) | (8,586) |
Employee per diems, meals and entertainment | 11,949 | 13,605 | 8,764 |
Taxes on unincorporated joint ventures | (578) | (1,354) | (656) |
Asset impairments | 0 | 0 | 1,909 |
Entity restructuring and recapitalization efforts | (4,424) | (26,668) | 0 |
Equity compensation | (1,449) | (5,095) | 0 |
Valuation allowance - Foreign Tax Credits | 43,507 | 0 | 0 |
Other | 4,220 | (1,751) | 3,326 |
Total provision for income taxes from continuing operations | $ 161,659 | $ 35,532 | $ 107,246 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax liabilities: | |||
Property and equipment | $ (178,090) | $ (161,491) | |
Goodwill | (60,305) | (49,407) | |
Other intangibles | (21,034) | (26,676) | |
Customer holdbacks | (44,173) | (36,218) | |
Other book/tax accounting method differences | (7,247) | (17,967) | |
Total deferred income tax liabilities | (310,849) | (291,759) | |
Deferred income tax assets: | |||
Accruals and reserves | 28,594 | 21,419 | |
Stock and incentive compensation | 20,627 | 17,676 | |
Net operating loss carryforwards | 52,406 | 62,925 | |
Tax credits | 43,572 | 48,516 | |
Deferred profit on investment in unconsolidated affiliates | 16,021 | 2,813 | |
Other | 15,054 | 4,747 | |
Subtotal | 176,274 | 158,096 | |
Valuation allowance | (67,601) | (19,328) | $ (15,000) |
Total deferred income tax assets | 108,673 | 138,768 | |
Total net deferred income tax liabilities | $ (202,176) | $ (152,991) |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income taxes: | ||
Assets | $ 16,939 | $ 26,390 |
Liabilities | (219,115) | (179,381) |
Total net deferred income tax liabilities | $ (202,176) | $ (152,991) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 36,229 | $ 35,240 | $ 54,541 |
Additions based on tax positions related to the current year | 6,231 | 7,040 | 4,227 |
Additions for tax positions of prior years | 9,377 | 3,372 | 2,048 |
Reductions for tax positions of prior years | (2,870) | (1,171) | (1,948) |
Reductions for audit settlements | 0 | 0 | (180) |
Reductions resulting from a lapse of the applicable statute of limitations periods | (7,857) | (8,252) | (23,448) |
Balance at end of year | $ 41,110 | $ 36,229 | $ 35,240 |
Income Taxes - Balances of Unre
Income Taxes - Balances of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Unrecognized tax benefits | $ 41,110 | $ 36,229 | $ 35,240 | $ 54,541 |
Portion that, if recognized, would reduce tax expense and effective tax rate | 40,977 | 35,561 | 33,128 | |
Accrued interest on unrecognized tax benefits | 5,459 | 5,368 | 5,539 | |
Accrued penalties on unrecognized tax benefits | 631 | 631 | 650 | |
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | 0 | 0 | 0 | |
Portion that, if recognized, would reduce tax expense and effective tax rate | 0 | 0 | 0 | |
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | 9,541 | 13,655 | 12,332 | |
Portion that, if recognized, would reduce tax expense and effective tax rate | $ 8,224 | $ 12,483 | $ 10,983 |
Equity - Exchangeable Shares an
Equity - Exchangeable Shares and Preferred Stock (Details) | Jan. 01, 2019shares | Dec. 31, 2018Acquisitionshares | Dec. 31, 2017shares | Dec. 31, 2016shares | Oct. 05, 2017shares |
Class of Stock [Line Items] | |||||
Number of shares of Common stock received for each exchangeable share (in shares) | 1 | ||||
Minimum number of shares that can be exchanged by exchangeable shareholders unless the number of remaining exchangeable shares registered in the name of the holder is less (in shares) | 50,000 | ||||
Number of business acquisitions having issuances of preferred stock | Acquisition | 2 | ||||
Series F | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares issued (in shares) | 1 | ||||
Series G Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares issued (in shares) | 1 | 1 | |||
Preferred stock, shares outstanding (in shares) | 1 | 1 | |||
Exchangeable Shares For Common Stock | |||||
Class of Stock [Line Items] | |||||
Exchangeable shares exchanged for common stock (in shares) | 6,000,000 | 400,000 | |||
Exchangeable Shares | |||||
Class of Stock [Line Items] | |||||
Common stock, shares outstanding (in shares) | 486,112 | 486,112 | |||
Exchangeable Shares Associated with Series G Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Common stock, shares outstanding (in shares) | 400,000 | ||||
Exchangeable Shares Associated with Series G Preferred Stock | Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Exchangeable shares exchanged for common stock (in shares) | 400,000 |
Equity - Treasury Stock (Detail
Equity - Treasury Stock (Details) - USD ($) shares in Millions | Dec. 01, 2016 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Value of treasury stock acquired, cost method | $ 451,290,000 | $ 50,000,000 | ||||
Cash payments related to stock repurchases | $ 443,152,000 | $ 50,000,000 | $ 0 | |||
Retirement of treasury stock, shares (in shares) | 84.8 | |||||
2017 Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Treasury stock acquired (in shares) | 13.9 | 1.4 | ||||
Value of treasury stock acquired, cost method | $ 451,300,000 | $ 50,000,000 | ||||
2017 Repurchase Program | Maximum | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Aggregate authorized amount of common stock to be repurchased | $ 300,000,000 | |||||
2018 Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Aggregate authorized amount of common stock to be repurchased | 500,000,000 | |||||
Remaining authorized share repurchase amount under repurchase program | 298,700,000 | |||||
Prior Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Treasury stock acquired (in shares) | 9.4 | |||||
Treasury Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Value of treasury stock acquired, cost method | 451,290,000 | 50,000,000 | 150,000,000 | |||
Carrying amount of retired stock | 1,946,129,000 | |||||
Treasury Stock Associated with Deferred Compensation Plans | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Value of treasury stock acquired, cost method | $ 2,500,000 | $ 2,600,000 | $ 6,800,000 | |||
Common Stock Withheld for Settlement of Employee Tax Liabilities | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Treasury stock acquired (in shares) | 0.4 | 0.5 | 0.4 | |||
Value of treasury stock acquired, cost method | $ 15,200,000 | $ 18,600,000 | $ 8,300,000 |
Equity - Non-controlling Intere
Equity - Non-controlling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Income attributable to non-controlling interests | $ 2,661 | $ 3,247 | $ 1,715 |
Carrying value of the investments held by Quanta in variable interest entities | 9,600 | 7,800 | |
Non-controlling interests | 1,294 | 4,058 | |
Distributions to non-controlling interests | 4,038 | 2,001 | $ 761 |
Decrease in notes receivable | 1,400 | 500 | |
VIE | |||
Variable Interest Entity [Line Items] | |||
Non-controlling interests | $ 1,300 | $ 4,100 |
Equity - Dividends (Details)
Equity - Dividends (Details) | Dec. 06, 2018$ / shares |
Equity [Abstract] | |
Cash dividends declared (in dollars per share) | $ 0.04 |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Incentive Plans (Details) | Dec. 31, 2018shares |
2011 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate number of shares of common stock that may be issued | 13,300,000 |
Equity-Based Compensation - Res
Equity-Based Compensation - Restricted Stock and RSUs to be Settled in Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash stock compensation expense | $ 52,484 | $ 46,448 | $ 42,843 |
Restricted Stock Units to be Settled in Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, shares (in shares) | 1,625 | 1,500 | 1,800 |
Granted, weighted average grant date fair value, per share (in usd per share) | $ 34.37 | $ 37.06 | $ 22.22 |
Awards vested (in shares) | 1,370 | ||
Unrecognized compensation cost, related to unvested restricted stock, total | $ 45,500 | ||
Expected weighted average period to recognize compensation cost on RSUs to be settled in common stock (in years) | 2 years 2 months 26 days | ||
Restricted Stock and Restricted Stock Units to be Settled in Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vested (in shares) | 1,400 | 1,500 | 1,400 |
Fair value of restricted stock, vested | $ 48,600 | $ 55,600 | $ 28,900 |
Non-cash stock compensation expense | $ 43,900 | $ 41,000 | $ 39,600 |
Share-based Compensation Award, Tranche One | Restricted Stock Units to be Settled in Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for RSUs to be settled in stock | 2 years | ||
Share-based Compensation Award, Tranche Two | Restricted Stock Units to be Settled in Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for RSUs to be settled in stock | 3 years | ||
Share-based Compensation Award, Tranche Three | Restricted Stock Units to be Settled in Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for RSUs to be settled in stock | 5 years |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Restricted Stock and RSU to be Settled in Common Stock Activity (Details) - Restricted Stock and RSUs to be Settled in Common Stock - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | |||
Unvested, shares, beginning of period (in shares) | 2,600 | ||
Granted, shares (in shares) | 1,625 | 1,500 | 1,800 |
Vested, shares (in shares) | (1,370) | ||
Forfeited, shares (in shares) | (221) | ||
Unvested, shares, end of period (in shares) | 2,634 | 2,600 | |
Weighted Average Grant Date Fair Value (Per share) | |||
Unvested, weighted average grant date fair value, beginning of period (in usd per share) | $ 30.42 | ||
Granted, weighted average grant date fair value (in usd per share) | 34.37 | $ 37.06 | $ 22.22 |
Vested, weighted average grant date fair value (in usd per share) | 28.88 | ||
Forfeited, weighted average grant date fair value (in usd per share) | 32.27 | ||
Unvested, weighted average grant date fair value, end of period (in usd per share) | $ 33.50 | $ 30.42 |
Equity-Based Compensation - Per
Equity-Based Compensation - Performance Units to be Settled in Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash stock compensation expense | $ 52,484 | $ 46,448 | $ 42,843 |
Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Required performance period | 3 years | ||
Performance units granted (in shares) | 300,000 | 300,000 | 300,000 |
Granted, weighted average grant date fair value, per share (in usd per share) | $ 12.24 | $ 17.63 | $ 22.86 |
Non-cash stock compensation expense | $ 8,600 | $ 5,400 | $ 3,200 |
Awards vested (in shares) | 100,000 | 100,000 | 0 |
Number of common shares issued in connection with performance units (in shares) | 100,000 | 100,000 | 0 |
Performance Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance units performance percentage | 0.00% | ||
Performance Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance units performance percentage | 200.00% |
Equity-Based Compensation - Gra
Equity-Based Compensation - Grant Date Fair Value for Awards of Performance Units Inputs (Details) - Performance Units - $ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2018 | Mar. 22, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share price (in usd per share) | $ 34.44 | $ 36.31 | ||
Expected volatility | 34.00% | 36.00% | ||
Risk-free interest rate | 2.39% | 1.46% | ||
Term in years | 2 years 10 months 2 days | 2 years 9 months 10 days |
Equity-Based Compensation - RSU
Equity-Based Compensation - RSUs to be Settled in Cash (Details) - Restricted Stock Units to be Settled in Cash - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common stock shares that may be received by RSU holder (in shares) | 1 | ||
Compensation expense related to RSUs to be settled in cash | $ 5 | $ 8.1 | $ 7 |
Payments to settle liabilities under compensation plan | 5.9 | 8.6 | $ 4.6 |
Accrued liabilities under compensation plan | $ 3.4 | $ 4.6 | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for RSUs to be settled in cash | 2 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for RSUs to be settled in cash | 3 years |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Plan Information Relating to Participation in Multiemployer Pension Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Multiemployer Plans [Line Items] | |||
Contributions | $ 126,191 | $ 110,082 | $ 85,235 |
National Electrical Benefit Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 35,399 | 29,161 | 22,912 |
Pipeline Industry Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 10,132 | 13,585 | 6,954 |
Central Pension Fund of the IUOE & Participating Employers | |||
Multiemployer Plans [Line Items] | |||
Contributions | 9,246 | 12,176 | 5,668 |
Laborers Pension Trust Fund for Northern California | |||
Multiemployer Plans [Line Items] | |||
Contributions | 3,652 | 3,387 | 3,805 |
International Union of Operating Engineers Local 132 Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 3,367 | 222 | 42 |
Eighth District Electrical Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 3,332 | 3,208 | 3,089 |
West Virginia Laborers Pension Trust Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 3,321 | 509 | 129 |
Teamsters National Pipe Line Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Contributions | 3,318 | 3,602 | 1,661 |
Plumbers and Pipefitters National Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,734 | 1,273 | 1,666 |
Locals 302 & 612 of the IUOE-Employers Construction Industry Retirement Plan | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,620 | 2,194 | 2,269 |
Operating Engineers Local 324 Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,310 | 1,969 | 1,291 |
Alaska Electrical Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,287 | 2,143 | 2,701 |
Laborers National Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,051 | 3,049 | 1,358 |
OE Pension Trust Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 1,922 | 1,703 | 1,508 |
Employer-Teamsters Local Nos 175 & 505 Pension Trust Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 1,209 | 50 | 0 |
Laborers District Council of W PA Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 1,029 | 418 | 876 |
Alaska Laborers - Employers Retirement Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 411 | 536 | 1,216 |
Alaska Teamster Employer Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Contributions | 197 | 255 | 659 |
All other plans - U.S. | |||
Multiemployer Plans [Line Items] | |||
Contributions | 29,136 | 21,365 | 26,869 |
All other plans - Canada | |||
Multiemployer Plans [Line Items] | |||
Contributions | $ 8,518 | $ 9,277 | $ 562 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer defined contribution and other benefit plan contributions other than MEP DBP | $ 126,191 | $ 110,082 | $ 85,235 |
Percentage of contribution by employer of each employee's contribution up to 3% | 100.00% | ||
Percentage of contribution by employer of each employee who contributes between 3% and 6% | 50.00% | ||
Contributions to Quanta 401(k) Plan | $ 33,400 | 26,300 | 21,900 |
Contributions to the deferred compensation plans | 1,100 | 1,100 | 1,000 |
Deferred compensation obligations included in other long-term liabilities | 33,400 | 30,100 | |
Investments in company-owned life insurance policies | $ 33,500 | 28,700 | |
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of employee contribution, lower range | 3.00% | ||
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of employee contribution, lower range | 6.00% | ||
Multiemployer Defined Contribution and Other Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer defined contribution and other benefit plan contributions other than MEP DBP | $ 174,700 | $ 171,400 | $ 139,300 |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Lease agreement terms | 5 years | ||
Related party lease expenses | $ 14 | $ 12.3 | $ 8.7 |
Commitments and Contingencies -
Commitments and Contingencies - Investments in Affiliates and Other Entities (Details) $ in Millions | 51 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2014kVsubstationkm | |
EPC Electric Transmission Project | ||
Other Commitments [Line Items] | ||
Outstanding capital commitment expected to be paid in 2019 | $ 8.6 | |
Length of electrical transmission line to be constructed under contract | km | 500 | |
Number of substations | substation | 2 | |
Voltage of substations | kV | 500 | |
Aggregate contributions to this unconsolidated affiliate | 76.2 | |
Proceeds from return of capital | 59.3 | |
Capital for Infrastructure Projects | ||
Other Commitments [Line Items] | ||
Outstanding capital commitment | 80 | |
Other Commitments, Planned Oil and Gas Infrastructure Projects | ||
Other Commitments [Line Items] | ||
Outstanding capital commitment | 14.8 | |
Outstanding capital commitment expected to be paid in 2019 | 14.1 | |
Outstanding capital commitment anticipated to be paid between years two through four | 0.7 | |
Infrastructure Investors Partnership | Capital for Infrastructure Projects | ||
Other Commitments [Line Items] | ||
Outstanding capital commitment | $ 1,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments under Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 124,530 |
2,020 | 81,189 |
2,021 | 55,827 |
2,022 | 34,337 |
2,023 | 21,450 |
Thereafter | 37,217 |
Total minimum lease payments | $ 354,550 |
Commitments and Contingencies_3
Commitments and Contingencies - Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense related to operating leases | $ 309.7 | $ 276.2 | $ 242.3 |
Residual value guarantees | |||
Guarantor Obligations [Line Items] | |||
Maximum guaranteed residual value | $ 665.9 |
Commitments and Contingencies_4
Commitments and Contingencies - Contingent Consideration Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 70.8 | $ 65.7 |
Commitments and Contingencies_5
Commitments and Contingencies - Committed Expenditures (Details) $ in Millions | Dec. 31, 2018USD ($) |
Vehicle Fleet Committed Capital | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Estimated committed capital in next fiscal year | $ 7.8 |
Commitments and Contingencies_6
Commitments and Contingencies - Legal Proceedings (Details) - Maximum - USD ($) | 1 Months Ended | |
Feb. 28, 2018 | Dec. 31, 2018 | |
Maurepas Project Dispute | ||
Loss Contingencies [Line Items] | ||
Reasonable possible loss | $ 22,000,000 | |
Lorenzo Benton V Telecom Network Specialists Inc | ||
Loss Contingencies [Line Items] | ||
Reasonable possible loss | $ 11,000,000 | |
Damages sought | $ 7,500,000 |
Commitments and Contingencies_7
Commitments and Contingencies - Concentrations of Credit Risk (Details) - Customer Concentration Risk - Customer | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Number of customers representing 10% or more of Quanta's consolidated net receivable position | 0 | 0 | |
Number of customers representing 10% or more of Quanta's consolidated revenues | 0 | 0 | 0 |
Commitments and Contingencies_8
Commitments and Contingencies - Insurance (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Commitment And Contingencies [Line Items] | ||
Insurance and other non-current liabilities | $ 404,560 | $ 342,356 |
Insurance Claims | ||
Commitment And Contingencies [Line Items] | ||
Gross amount accrued for insurance claims | 272,900 | 254,700 |
Insurance and other non-current liabilities | 210,100 | 200,000 |
Related insurance recoveries/receivables | 56,500 | 50,400 |
Related insurance recoveries/receivables included in prepaid expenses and other current assets | 300 | 400 |
Related insurance recoveries/receivables included in other assets net | 56,200 | $ 50,000 |
Atlantic Bridge Project Insurance Claim | ||
Commitment And Contingencies [Line Items] | ||
Related insurance recoveries/receivables | $ 26,700 |
Commitments and Contingencies_9
Commitments and Contingencies - Letters of Credit (Details) $ in Millions | Dec. 31, 2018USD ($) |
Letters Of Credit and Bank Guarantees | |
Loss Contingencies [Line Items] | |
Letters of credit and bank guarantees under the credit facility | $ 412.9 |
Commitments and Contingencie_10
Commitments and Contingencies - Performance Bonds and Parent Guarantees (Details) - Performance Guarantee $ in Millions | Dec. 31, 2018USD ($) |
Loss Contingencies [Line Items] | |
Total amount of outstanding performance bonds | $ 2,600 |
Estimate | |
Loss Contingencies [Line Items] | |
Estimated cost to complete bonded projects | $ 733 |
Commitments and Contingencie_11
Commitments and Contingencies - Indemnities (Details) - Indemnification Agreement $ in Millions | Dec. 31, 2018USD ($) |
Loss Contingencies [Line Items] | |
Pre-acquisition non-U.S.tax obligations and indemnification asset amount recorded | $ 11.4 |
Pre-acquisition non-U.S.tax obligations and indemnification liability amount recorded | $ 11.4 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)SegmentDivisions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | Segment | 2 | ||||||||||
Number of internal divisions | Divisions | 2 | ||||||||||
Revenues | $ 3,112,218 | $ 2,985,281 | $ 2,656,348 | $ 2,417,576 | $ 2,478,627 | $ 2,609,307 | $ 2,200,374 | $ 2,178,170 | $ 11,171,423 | $ 9,466,478 | $ 7,651,319 |
Property and equipment | 1,276,032 | 1,288,602 | 1,276,032 | 1,288,602 | |||||||
Non-US | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,600,000 | 2,480,000 | $ 1,590,000 | ||||||||
Property and equipment | $ 304,000 | $ 330,400 | 304,000 | $ 330,400 | |||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,984,214 | ||||||||||
Percentage of foreign revenues | 76.00% | 79.00% | 75.00% |
Segment Information - Summarize
Segment Information - Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 3,112,218 | $ 2,985,281 | $ 2,656,348 | $ 2,417,576 | $ 2,478,627 | $ 2,609,307 | $ 2,200,374 | $ 2,178,170 | $ 11,171,423 | $ 9,466,478 | $ 7,651,319 |
Operating income (loss) | 540,269 | 378,849 | 320,813 | ||||||||
Depreciation | 202,519 | 183,808 | 170,240 | ||||||||
Operating Segments | Electric Power Infrastructure Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,415,562 | 5,599,836 | 4,850,495 | ||||||||
Operating income (loss) | 628,286 | 518,130 | 395,745 | ||||||||
Depreciation | 96,300 | 91,708 | 91,269 | ||||||||
Operating Segments | Pipeline and Industrial Infrastructure Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 4,755,861 | 3,866,642 | 2,800,824 | ||||||||
Operating income (loss) | 204,178 | 184,083 | 149,502 | ||||||||
Depreciation | 89,046 | 76,355 | 67,374 | ||||||||
Consolidated | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | (292,195) | (323,364) | (224,434) | ||||||||
Depreciation | $ 17,173 | $ 15,745 | $ 11,597 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Net Effect of Changes in Operating Assets and Liabilities, Net of Non-Cash Transactions, on Cash Flows from Operating Activities of Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accounts and notes receivable | $ (475,919) | $ (425,313) | $ 144,877 |
Contract assets | (92,838) | 15,999 | (152,702) |
Inventories | (28,131) | 14,110 | (9,905) |
Prepaid expenses and other current assets | (40,187) | (32,079) | 25,133 |
Accounts payable and accrued expenses and other non-current liabilities | 247,897 | 28,547 | 81,246 |
Contract liabilities | (23) | 139,114 | (124,680) |
Other, net | (11,332) | 17,858 | (12,635) |
Net change in operating assets and liabilities, net of non-cash transactions | $ (400,533) | $ (241,764) | $ (48,666) |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 78,687 | $ 138,285 | $ 112,183 | $ 128,771 |
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows | 83,256 | 143,775 | 114,410 | 128,771 |
Prepaid Expenses and Other Current Assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | 3,286 | 5,106 | 1,709 | 0 |
Other Assets, Net | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 1,283 | $ 384 | $ 518 | $ 0 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Additional Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Continuing Operations | |||
Cash (paid) received during the period for - | |||
Interest paid related to continuing operations | $ (34,935) | $ (19,373) | $ (12,828) |
Income taxes paid | (112,895) | (112,335) | (121,662) |
Income tax refunds related to continuing operations | 5,209 | 9,845 | 7,548 |
Discontinued Operations | |||
Cash (paid) received during the period for - | |||
Income taxes paid | $ 0 | $ 0 | $ (7,260) |
Supplemental Cash Flow Inform_6
Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |||
Appraised value of marine industrial property | $ 6.4 | ||
Aggregate value given in exchange | $ 3.8 | $ 7.1 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Consolidated Operating Results by Quarter (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 3,112,218 | $ 2,985,281 | $ 2,656,348 | $ 2,417,576 | $ 2,478,627 | $ 2,609,307 | $ 2,200,374 | $ 2,178,170 | $ 11,171,423 | $ 9,466,478 | $ 7,651,319 |
Gross profit | 419,715 | 425,830 | 333,371 | 301,048 | 322,876 | 350,631 | 302,165 | 266,188 | 1,479,964 | 1,241,860 | 1,013,800 |
Net income | 57,791 | 124,899 | 74,706 | 38,611 | 115,576 | 89,849 | 64,360 | 48,440 | 296,007 | 318,225 | 200,098 |
Net income from continuing operations attributable to common stock | $ 56,816 | $ 124,551 | $ 74,365 | $ 37,614 | $ 113,561 | $ 89,313 | $ 63,837 | $ 48,267 | $ 293,346 | $ 314,978 | $ 198,725 |
Basic earnings per share from continuing operations attributable to common stock (in dollars per share) | $ 0.38 | $ 0.82 | $ 0.49 | $ 0.24 | $ 0.72 | $ 0.57 | $ 0.41 | $ 0.31 | $ 1.92 | $ 2.02 | $ 1.26 |
Diluted earnings per share from continuing operations attributable to common stock (in dollars per share) | $ 0.38 | $ 0.81 | $ 0.48 | $ 0.24 | $ 0.72 | $ 0.56 | $ 0.41 | $ 0.31 | $ 1.90 | $ 2 | $ 1.26 |
Quarterly Financial Data (Una_4
Quarterly Financial Data (Unaudited) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||
Asset impairment charges | $ 49,400 | $ 58,100 | $ 49,375 | $ 58,057 | $ 7,964 |
Asset impairment charges, net of tax | 36,500 | $ 36,600 | |||
Net tax charges related to final assessment of the Tax Act | $ 36,000 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | Jan. 24, 2019 | Jan. 29, 2019 | Dec. 31, 2018 |
Electric Power Specialty Contracting Business Located in the United States | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Purchase price | $ 47 | ||
PG&E | |||
Subsequent Event [Line Items] | |||
Pre-petition receivables | $ 102.4 | ||
PG&E | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Pre-petition receivables | $ 79.9 |
Uncategorized Items - pwr-12311
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,276,000) |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,276,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,276,000) |