Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 02, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-13831 | |
Entity Registrant Name | Quanta Services, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-2851603 | |
Entity Address, Address Line One | 2800 Post Oak Boulevard, Suite 2600 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77056 | |
City Area Code | 713 | |
Local Phone Number | 629-7600 | |
Title of 12(b) Security | Common Stock, $0.00001 par value | |
Trading Symbol | PWR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 142,499,280 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001050915 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 1,696,210 | $ 184,620 |
Accounts receivable, net of allowances of $39,709 and $16,546 | 3,002,172 | 2,716,083 |
Contract assets | 760,279 | 453,832 |
Inventories | 61,959 | 50,472 |
Prepaid expenses and other current assets | 183,514 | 183,382 |
Total current assets | 5,704,134 | 3,588,389 |
Property and equipment, net of accumulated depreciation of $1,481,416 and $1,372,132 | 1,601,500 | 1,560,656 |
Operating lease right-of-use assets | 232,282 | 256,845 |
Other assets, net | 602,838 | 435,713 |
Other intangible assets, net of accumulated amortization of $582,126 and $517,574 | 388,999 | 435,655 |
Goodwill | 2,145,963 | 2,121,014 |
Total assets | 10,675,716 | 8,398,272 |
Current Liabilities: | ||
Current maturities of long-term debt and short-term debt | 23,748 | 14,764 |
Current portion of operating lease liabilities | 78,869 | 85,134 |
Accounts payable and accrued expenses | 1,760,789 | 1,509,794 |
Contract liabilities | 501,142 | 528,864 |
Total current liabilities | 2,364,548 | 2,138,556 |
Long-term debt, net of current maturities | 2,930,905 | 1,174,294 |
Operating lease liabilities, net of current portion | 161,320 | 178,822 |
Deferred income taxes | 184,827 | 166,407 |
Insurance and other non-current liabilities | 400,284 | 391,221 |
Total liabilities | 6,041,884 | 4,049,300 |
Commitments and Contingencies | ||
Equity: | ||
Common stock, $0.00001 par value, 600,000,000 shares authorized, 165,007,258 and 162,710,792 shares issued, and 139,111,888 and 138,300,191 shares outstanding | 2 | 2 |
Additional paid-in capital | 2,232,319 | 2,170,026 |
Retained earnings | 3,620,409 | 3,264,967 |
Accumulated other comprehensive loss | (242,986) | (232,997) |
Treasury stock, 25,895,370 and 24,410,601 common shares | (979,034) | (857,817) |
Total stockholders’ equity | 4,630,710 | 4,344,181 |
Non-controlling interests | 3,122 | 4,791 |
Total equity | 4,633,832 | 4,348,972 |
Total liabilities and equity | $ 10,675,716 | $ 8,398,272 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowances on accounts receivable, current | $ 39,709 | $ 16,546 |
Accumulated depreciation on property and equipment | 1,481,416 | 1,372,132 |
Accumulated amortization on other intangible assets | $ 582,126 | $ 517,574 |
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) | 165,007,258 | 162,710,792 |
Common stock, shares outstanding (in shares) | 139,111,888 | 138,300,191 |
Treasury stock, common shares (in shares) | 25,895,370 | 24,410,601 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 3,353,278 | $ 3,020,161 | $ 9,056,675 | $ 8,290,487 |
Cost of services (including depreciation) | 2,818,602 | 2,512,647 | 7,701,398 | 7,095,513 |
Gross profit | 534,676 | 507,514 | 1,355,277 | 1,194,974 |
Equity in earnings of integral unconsolidated affiliates | 10,232 | 5,120 | 22,865 | 6,165 |
Selling, general and administrative expenses | (274,846) | (250,654) | (788,308) | (709,299) |
Amortization of intangible assets | (22,772) | (19,687) | (65,418) | (55,374) |
Asset impairment charges | 0 | 0 | (2,319) | 0 |
Change in fair value of contingent consideration liabilities | 787 | (78) | 1,360 | (598) |
Operating income | 248,077 | 242,215 | 523,457 | 435,868 |
Interest expense | (17,259) | (11,049) | (42,843) | (33,709) |
Interest income | 72 | 80 | 3,098 | 1,114 |
Other income (expense), net | 6,089 | 2,931 | 18,232 | (3,649) |
Income before income taxes | 236,979 | 234,177 | 501,944 | 399,624 |
Provision for income taxes | 61,581 | 70,477 | 116,256 | 119,626 |
Net income | 175,398 | 163,700 | 385,688 | 279,998 |
Less: Net income attributable to non-controlling interests | 1,033 | 787 | 4,529 | 4,453 |
Net income attributable to common stock | $ 174,365 | $ 162,913 | $ 381,159 | $ 275,545 |
Earnings per share attributable to common stock: | ||||
Basic (in dollars per share) | $ 1.25 | $ 1.16 | $ 2.72 | $ 1.95 |
Diluted (in dollars per share) | $ 1.21 | $ 1.13 | $ 2.64 | $ 1.90 |
Shares used in computing earnings per share: | ||||
Weighted average basic shares outstanding (in shares) | 140,008,000 | 140,542,000 | 140,134,000 | 141,610,000 |
Weighted average diluted shares outstanding (in shares) | 144,304,000 | 144,363,000 | 144,448,000 | 144,985,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 175,398 | $ 163,700 | $ 385,688 | $ 279,998 |
Other comprehensive income (loss), net of tax provision: | ||||
Foreign currency translation adjustment, net of tax of $0, $0, $0 and $0 | (26,429) | 15,707 | (10,009) | (32,524) |
Other, net of tax of $1, $0, $4 and $0 | 6 | 0 | 20 | 0 |
Other comprehensive income (loss) | (26,423) | 15,707 | (9,989) | (32,524) |
Comprehensive income | 148,975 | 179,407 | 375,699 | 247,474 |
Less: Comprehensive income attributable to non-controlling interests | 1,033 | 787 | 4,529 | 4,453 |
Total comprehensive income attributable to common stock | $ 147,942 | $ 178,620 | $ 371,170 | $ 243,021 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Other, tax | $ 1 | $ 0 | $ 4 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities: | ||||
Net income | $ 175,398 | $ 163,700 | $ 385,688 | $ 279,998 |
Adjustments to reconcile net income to net cash provided by operating activities— | ||||
Depreciation | 61,616 | 56,244 | 186,480 | 165,180 |
Amortization of intangible assets | 22,772 | 19,687 | 65,418 | 55,374 |
Asset impairment charges | 0 | 0 | 2,319 | 0 |
Impairment of cost method investment | 0 | 0 | 0 | 9,311 |
Change in fair value of contingent consideration liabilities | (787) | 78 | (1,360) | 598 |
Equity in (earnings) losses of unconsolidated affiliates | (10,758) | (5,260) | (24,734) | 2,207 |
Amortization of deferred financing costs | 3,919 | 3,070 | 5,609 | 4,247 |
Gain on sale of property and equipment | (1,077) | (2,246) | (10,931) | (4,218) |
Provision for credit losses | 249 | 1,566 | 24,169 | 2,910 |
Deferred income tax provision (benefit) | (2,502) | (17,443) | 14,245 | (19,226) |
Non-cash stock-based compensation | 21,642 | 21,431 | 64,252 | 58,323 |
Foreign currency gain | (4,901) | (1,505) | (6,531) | (4,942) |
Payments for contingent consideration liabilities | 0 | 0 | 0 | (590) |
Changes in operating assets and liabilities, net of non-cash transactions | (247,695) | (124,463) | (372,187) | 290,715 |
Net cash provided by operating activities | 17,876 | 114,859 | 332,437 | 839,887 |
Cash Flows from Investing Activities: | ||||
Capital expenditures | (74,612) | (50,780) | (232,996) | (167,037) |
Proceeds from sale of property and equipment | 16,431 | 5,844 | 35,101 | 18,460 |
Proceeds from insurance settlements related to property and equipment | 255 | 73 | 535 | 271 |
Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired | (33,261) | (187,655) | (101,373) | (212,092) |
Proceeds from disposition of businesses | 0 | 203 | 0 | 11,064 |
Investments in unconsolidated affiliates and other | (5,154) | (778) | (119,478) | (9,538) |
Cash received from investments in unconsolidated affiliates and other entities | 5 | 2,538 | 3,022 | 2,570 |
Cash paid for intangible assets | (200) | 0 | (524) | 0 |
Net cash used in investing activities | (96,536) | (230,555) | (415,713) | (356,302) |
Cash Flows from Financing Activities: | ||||
Borrowings under credit facility | 1,240,766 | 478,762 | 3,124,845 | 2,453,941 |
Payments under credit facility | (1,142,350) | (1,648,614) | (2,857,190) | (3,602,660) |
Proceeds from notes offering | 1,487,450 | 990,130 | 1,487,450 | 990,130 |
Payments of other long-term debt | (916) | (652) | (2,530) | (1,635) |
Net repayments of short-term debt, net of borrowings | 13,619 | (1,761) | 9,372 | (6,180) |
Deferred financing costs | (5,056) | (7,794) | (5,056) | (7,794) |
Payments for contingent consideration liabilities | 0 | 0 | (263) | (10,399) |
Distributions to non-controlling interests | (1,107) | (744) | (6,357) | (4,669) |
Payments related to tax withholding for stock-based compensation | (2,638) | (830) | (63,131) | (24,403) |
Payment of dividends | (8,414) | (7,001) | (25,627) | (21,545) |
Repurchase of common stock | (17,764) | 0 | (66,687) | (200,000) |
Net cash provided by (used in) financing activities | 1,563,590 | (198,504) | 1,594,826 | (435,214) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (549) | 449 | 738 | 986 |
Net increase in cash, cash equivalents and restricted cash | 1,484,381 | (313,751) | 1,512,288 | 49,357 |
Cash, cash equivalents and restricted cash, beginning of period | 214,715 | 532,853 | 186,808 | 169,745 |
Cash, cash equivalents and restricted cash, end of period | $ 1,699,096 | $ 219,102 | $ 1,699,096 | $ 219,102 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Adjustment due to Adoption of New ASU | Common StockCommon Stock | Common StockExchangeable Shares | Additional Paid-In Capital | Retained Earnings | Retained EarningsAdjustment due to Adoption of New ASU | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders' Equity | Total Stockholders' EquityAdjustment due to Adoption of New ASU | Non-controlling Interests |
Balance (in shares) at Dec. 31, 2019 | 142,324,318 | 36,183 | ||||||||||
Balance at Dec. 31, 2019 | $ 4,053,831 | $ (3,841) | $ 2 | $ 0 | $ 2,024,610 | $ 2,854,271 | $ (3,841) | $ (241,818) | $ (586,773) | $ 4,050,292 | $ (3,841) | $ 3,539 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Other comprehensive income (loss) | (82,968) | (82,968) | (82,968) | |||||||||
Acquisitions (in shares) | 121,089 | |||||||||||
Acquisitions | 4,329 | 4,329 | 4,329 | |||||||||
Stock-based compensation activity (in shares) | 1,124,530 | |||||||||||
Stock-based compensation activity | (8,306) | 11,444 | (19,750) | (8,306) | ||||||||
Exchange of exchangeable shares (in shares) | 36,183 | (36,183) | ||||||||||
Common stock repurchases (in shares) | (5,960,134) | |||||||||||
Common stock repurchases | (200,000) | (200,000) | (200,000) | |||||||||
Dividends declared | (7,184) | (7,184) | (7,184) | |||||||||
Distributions to non-controlling interests | (1,963) | (1,963) | ||||||||||
Other | (223) | (516) | (516) | 293 | ||||||||
Net income | 41,503 | 38,686 | 38,686 | 2,817 | ||||||||
Balance (in shares) at Mar. 31, 2020 | 137,645,986 | 0 | ||||||||||
Balance at Mar. 31, 2020 | 3,795,178 | $ 2 | $ 0 | 2,040,383 | 2,881,416 | (324,786) | (806,523) | 3,790,492 | 4,686 | |||
Balance (in shares) at Dec. 31, 2019 | 142,324,318 | 36,183 | ||||||||||
Balance at Dec. 31, 2019 | 4,053,831 | $ (3,841) | $ 2 | $ 0 | 2,024,610 | 2,854,271 | $ (3,841) | (241,818) | (586,773) | 4,050,292 | $ (3,841) | 3,539 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Other comprehensive income (loss) | (32,524) | |||||||||||
Net income | 279,998 | |||||||||||
Balance (in shares) at Sep. 30, 2020 | 138,843,346 | 0 | ||||||||||
Balance at Sep. 30, 2020 | 4,155,566 | $ 2 | $ 0 | 2,130,057 | 3,103,849 | (274,342) | (807,616) | 4,151,950 | 3,616 | |||
Balance (in shares) at Mar. 31, 2020 | 137,645,986 | 0 | ||||||||||
Balance at Mar. 31, 2020 | 3,795,178 | $ 2 | $ 0 | 2,040,383 | 2,881,416 | (324,786) | (806,523) | 3,790,492 | 4,686 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Other comprehensive income (loss) | 34,737 | 34,737 | 34,737 | |||||||||
Stock-based compensation activity (in shares) | 65,826 | |||||||||||
Stock-based compensation activity | 22,436 | 22,717 | (281) | 22,436 | ||||||||
Dividends declared | (7,182) | (7,182) | (7,182) | |||||||||
Distributions to non-controlling interests | (1,962) | (1,962) | ||||||||||
Net income | 74,795 | 73,946 | 73,946 | 849 | ||||||||
Balance (in shares) at Jun. 30, 2020 | 137,711,812 | 0 | ||||||||||
Balance at Jun. 30, 2020 | 3,918,002 | $ 2 | $ 0 | 2,063,100 | 2,948,180 | (290,049) | (806,804) | 3,914,429 | 3,573 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Other comprehensive income (loss) | 15,707 | 15,707 | 15,707 | |||||||||
Acquisitions (in shares) | 1,087,774 | |||||||||||
Acquisitions | 45,532 | 45,532 | 45,532 | |||||||||
Stock-based compensation activity (in shares) | 43,760 | |||||||||||
Stock-based compensation activity | 20,613 | 21,425 | (812) | 20,613 | ||||||||
Dividends declared | (7,244) | (7,244) | (7,244) | |||||||||
Distributions to non-controlling interests | (744) | (744) | ||||||||||
Net income | 163,700 | 162,913 | 162,913 | 787 | ||||||||
Balance (in shares) at Sep. 30, 2020 | 138,843,346 | 0 | ||||||||||
Balance at Sep. 30, 2020 | 4,155,566 | $ 2 | $ 0 | 2,130,057 | 3,103,849 | (274,342) | (807,616) | 4,151,950 | 3,616 | |||
Balance (in shares) at Dec. 31, 2020 | 138,300,191 | |||||||||||
Balance at Dec. 31, 2020 | 4,348,972 | $ 2 | 2,170,026 | 3,264,967 | (232,997) | (857,817) | 4,344,181 | 4,791 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Other comprehensive income (loss) | 8,539 | 8,539 | 8,539 | |||||||||
Stock-based compensation activity (in shares) | 1,368,739 | |||||||||||
Stock-based compensation activity | (41,399) | 13,702 | (55,101) | (41,399) | ||||||||
Common stock repurchases (in shares) | (222,081) | |||||||||||
Common stock repurchases | (17,710) | (17,710) | (17,710) | |||||||||
Dividends declared | (8,429) | (8,429) | (8,429) | |||||||||
Distributions to non-controlling interests | (1,129) | (1,129) | ||||||||||
Net income | 91,319 | 89,761 | 89,761 | 1,558 | ||||||||
Balance (in shares) at Mar. 31, 2021 | 139,446,849 | |||||||||||
Balance at Mar. 31, 2021 | 4,380,163 | $ 2 | 2,183,728 | 3,346,299 | (224,458) | (930,628) | 4,374,943 | 5,220 | ||||
Balance (in shares) at Dec. 31, 2020 | 138,300,191 | |||||||||||
Balance at Dec. 31, 2020 | 4,348,972 | $ 2 | 2,170,026 | 3,264,967 | (232,997) | (857,817) | 4,344,181 | 4,791 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Other comprehensive income (loss) | (9,989) | |||||||||||
Net income | 385,688 | |||||||||||
Balance (in shares) at Sep. 30, 2021 | 139,111,888 | |||||||||||
Balance at Sep. 30, 2021 | 4,633,832 | $ 2 | 2,232,319 | 3,620,409 | (242,986) | (979,034) | 4,630,710 | 3,122 | ||||
Balance (in shares) at Mar. 31, 2021 | 139,446,849 | |||||||||||
Balance at Mar. 31, 2021 | 4,380,163 | $ 2 | 2,183,728 | 3,346,299 | (224,458) | (930,628) | 4,374,943 | 5,220 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Other comprehensive income (loss) | 7,895 | 7,895 | 7,895 | |||||||||
Stock-based compensation activity (in shares) | 64,600 | |||||||||||
Stock-based compensation activity | 24,961 | 25,177 | (216) | 24,961 | ||||||||
Common stock repurchases (in shares) | (313,725) | |||||||||||
Common stock repurchases | (29,450) | (29,450) | (29,450) | |||||||||
Dividends declared | (8,650) | (8,650) | (8,650) | |||||||||
Distributions to non-controlling interests | (4,121) | (4,121) | ||||||||||
Other | 25 | 25 | ||||||||||
Net income | 118,971 | 117,033 | 117,033 | 1,938 | ||||||||
Balance (in shares) at Jun. 30, 2021 | 139,197,724 | |||||||||||
Balance at Jun. 30, 2021 | 4,489,794 | $ 2 | 2,208,905 | 3,454,682 | (216,563) | (960,294) | 4,486,732 | 3,062 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Other comprehensive income (loss) | (26,423) | (26,423) | (26,423) | |||||||||
Acquisitions (in shares) | 32,822 | |||||||||||
Acquisitions | 2,479 | 2,479 | 2,479 | |||||||||
Stock-based compensation activity (in shares) | 66,100 | |||||||||||
Stock-based compensation activity | 19,023 | 20,935 | (1,912) | 19,023 | ||||||||
Common stock repurchases (in shares) | (184,758) | |||||||||||
Common stock repurchases | (16,828) | (16,828) | (16,828) | |||||||||
Dividends declared | (8,638) | (8,638) | (8,638) | |||||||||
Distributions to non-controlling interests | (1,107) | (1,107) | ||||||||||
Other | 134 | 134 | ||||||||||
Net income | 175,398 | 174,365 | 174,365 | 1,033 | ||||||||
Balance (in shares) at Sep. 30, 2021 | 139,111,888 | |||||||||||
Balance at Sep. 30, 2021 | $ 4,633,832 | $ 2 | $ 2,232,319 | $ 3,620,409 | $ (242,986) | $ (979,034) | $ 4,630,710 | $ 3,122 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands | Aug. 27, 2021 | May 27, 2021 | Mar. 25, 2021 | Dec. 11, 2020 | Aug. 26, 2020 | May 28, 2020 | Mar. 26, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 |
Statement of Stockholders' Equity [Abstract] | |||||||||||||
Cash dividends declared (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.05 |
Other | $ 134 | $ 25 | $ (223) |
Business and Organization
Business and Organization | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | BUSINESS AND ORGANIZATION: Quanta Services, Inc. (together with its subsidiaries, Quanta) is a leading provider of specialty contracting services, delivering comprehensive infrastructure solutions for the electric and gas utility, communications, pipeline and energy industries in the United States, Canada, Australia and select other international markets. Quanta reports its results under two reportable segments: (1) Electric Power Infrastructure Solutions and (2) Underground Utility and Infrastructure Solutions. On October 13, 2021, Quanta completed the acquisition of Blattner Holding Company and its operating subsidiaries (collectively, Blattner). Blattner is a large utility-scale renewable energy infrastructure solutions provider that is located and primarily operates in North America. For additional information regarding this acquisition, see Note 4. Blattner provides comprehensive solutions to customers in the renewable energy industry, which generally include front-end engineering, procurement, project management and construction services for wind, solar and energy storage projects. Blattner’s results will be included in Quanta’s consolidated financial statements beginning on the acquisition date. Electric Power Infrastructure Solutions Segment The Electric Power Infrastructure Solutions segment provides comprehensive network solutions to customers in the electric power and other industries. Services performed by the Electric Power Infrastructure Solutions segment generally include the design, new construction, upgrade and repair and maintenance of electric power transmission and distribution infrastructure and substation facilities, along with other engineering and technical services. This includes solutions that support the implementation of upgrades by utilities to modernize and harden the electric power grid in order to ensure its safety and enhance reliability. In addition, this segment provides engineering and construction services for switchyards and transmission infrastructure needed to interconnect renewable energy generation, including solar, wind, hydro power and backup natural gas generation facilities. This segment also provides emergency restoration services, including the repair of infrastructure damaged by fire and 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 techniques; and the installation of “smart grid” technologies on electric power networks. Engineering and construction services related to, among other things, electric vehicle charging infrastructure, micro-grids and battery storage are also performed in this segment. This segment also provides comprehensive design and construction solutions to wireline and wireless communications companies, cable multi-system operators and other customers within the communications industry, including services in connection with 5G wireless deployment; and the design, installation, maintenance and repair of commercial and industrial wiring. This segment also provides aviation services in support of the services described above and includes the majority of the financial results of Quanta’s postsecondary educational institution, which specializes in pre-apprenticeship training, apprenticeship training and specialized utility task training for electric workers, as well as training for the gas distribution and communications industries. Underground Utility and Infrastructure Solutions Segment The Underground Utility and Infrastructure Solutions segment provides comprehensive infrastructure solutions, including design, engineering, new construction, upgrade and repair and maintenance services, to customers involved in the transportation, distribution, storage and processing of natural gas, oil and other products. Services include the upgrade, new construction and repair and maintenance of natural gas systems for gas utility customers, as well as pipeline protection, integrity testing, rehabilitation and replacement. Quanta also provides catalyst replacement services, high-pressure and critical-path turnaround services, instrumentation and electrical services, piping, fabrication and storage tank services to the midstream and downstream industrial energy markets. This segment also provides engineering and construction services for pipeline systems, storage systems and compressor and pump stations and the fabrication of pipeline support systems and related structures and facilities, as well as trenching, directional boring and mechanized welding services related to the services described above and in connection with our electric power infrastructure services. To a lesser extent, this segment includes construction services for the offshore energy market and services in connection with the design, installation and maintenance of fueling systems and water and sewer infrastructure. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation The condensed 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 condensed consolidated financial statements also include the accounts of certain of Quanta’s investments in joint ventures, which are either consolidated or proportionately consolidated. 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% in the affiliated entity, are accounted for using the equity method. Unless the context requires otherwise, references to Quanta include Quanta Services, Inc. and its consolidated subsidiaries. Interim Condensed Consolidated Financial Information These unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP), have been condensed or omitted pursuant to those rules and regulations. Quanta believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income and cash flows with respect to the interim condensed consolidated financial statements have been included. The results of operations and comprehensive income for the interim periods are not necessarily indicative of the results for the entire fiscal year. The results of Quanta have historically been subject to significant seasonal fluctuations. Quanta recommends that these unaudited condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto of Quanta and its consolidated subsidiaries, which contain additional information about Quanta’s policies and are included in Quanta’s 2020 Annual Report. Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP 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 revenue recognition for construction contracts, including contractual change orders and claims; allowance for credit losses; 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; multiemployer pension plan withdrawal liabilities; contingent liabilities associated with, among other things, legal proceedings and claims, parent guarantees and indemnity obligations; estimated insurance claim recoveries; stock-based compensation; operating results of reportable segments; provision for income taxes; and uncertain tax positions. Revenue Recognition Quanta’s services may be provided pursuant to master service agreements (MSAs), repair and maintenance contracts and fixed price and non-fixed price construction contracts. These contracts are classified into three categories based on the methods by which transaction prices are determined and revenue is recognized: unit-price contracts, cost-plus contracts and fixed price contracts. Transaction prices for unit-price 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. Performance Obligations At September 30, 2021 and December 31, 2020, the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations was approximately $4.37 billion and $3.99 billion, of which 78.7% and 71.2% were expected to be recognized in the subsequent twelve months. These amounts represent management’s estimates 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 had not yet begun as of such dates. 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 are potential orders under MSAs and non-fixed price contracts expected to be completed within one year. 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. Some of the factors that can result in positive changes in estimates on projects include successful execution through project risks, reduction of estimated project costs or increases of estimated revenues. Some of the factors that can result in negative changes in estimates include concealed or unknown site conditions; changes to or disputes with customers regarding the scope of services; changes in estimates related to the length of time to complete a performance obligation; changes or delays with respect to permitting and regulatory requirements; changes in the cost or availability of equipment, commodities, materials or skilled labor; unanticipated costs or claims due to delays or failure to perform by customers or third parties; customer failure to provide required materials or equipment; errors in engineering, specifications or designs; project modifications; adverse weather conditions, natural disasters, and other emergencies (including the ongoing COVID-19 pandemic); and performance and quality issues causing delay (including payment of liquidated damages) or requiring rework or replacement. Any changes in estimates may result in changes to profitability or losses associated with the related performance obligations. Changes in estimated revenues, costs and profit are recognized on a cumulative catch-up basis and recorded in the period they are determined to be probable and can be reasonably estimated. 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 or the reversal of previously recognized revenue if the currently estimated revenue is less than the previous estimate. The impact of a change in contract 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. Changes in estimates can also result in contract losses, which are recognized in full when they are determined to be probable and can be reasonably estimated. Operating results for the three months ended September 30, 2021 were favorably impacted by $41.9 million, or 7.8%, of gross profit as a result of aggregate changes in contract estimates related to projects that were in progress at June 30, 2021. Operating results for the nine months ended September 30, 2021 were favorably impacted by $127.4 million, or 9.4%, of gross profit as a result of aggregate changes in contract estimates related to projects that were in progress at December 31, 2020. The overall favorable impact resulted from net positive changes in estimates across a large number of projects, primarily as a result of favorable performance and successful mitigation of risks and contingencies as the projects progressed to completion. Operating results for the three months ended September 30, 2020 were favorably impacted by $48.7 million, or 9.6%, of gross profit as a result of aggregate changes in contract estimates related to projects that were in progress at June 30, 2020. Operating results for the nine months ended September 30, 2020 were impacted by less than 5% of gross profit as a result of aggregate changes in contract estimates related to projects that were in progress at December 31, 2019. Certain projects were materially impacted by changes to estimated contract revenues and/or project costs during the three and nine months ended September 30, 2020. Revenues and gross profit were favorably impacted as a result of successful execution through project risks and close-out activities on certain large pipeline projects in the United States, as well as a project scope reduction on a large pipeline project in the United States that allowed Quanta to recognize a portion of previously deferred milestone payments and reduce certain contingencies on the project. The favorable impact related to these projects was partially offset by increased costs on two large pipeline projects in Canada that experienced severe weather conditions during the three and nine months ended September 30, 2020, both of which were complete as of September 30, 2021. With respect to all of these large pipeline projects, the aggregate net favorable impact on gross profit related to work performed in prior periods was $32.9 million and $15.1 million during the three and nine months ended September 30, 2020. Additionally, during the three and nine months ended September 30, 2020, Quanta was pursuing the orderly exit of its Latin American operations, which was substantially complete as of December 31, 2020. These operations were adversely impacted by the COVID-19 pandemic due to shelter-in-place restrictions and other work disruptions, and as a result Quanta accelerated various contract terminations and other activities in order to expedite cessation of operations in the region. These factors resulted in changes in estimates on several projects and negatively impacted gross profit related to work performed in prior periods by $12.1 million and $28.6 million in the aggregate during the three and nine months ended September 30, 2020. Changes in cost estimates on certain contracts may also result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. As of September 30, 2021 and December 31, 2020, Quanta had recognized revenues of $254.1 million and $141.2 million related to change orders and claims included as contract price adjustments that were in the process of being negotiated in the normal course of business. The largest component of the revenues recognized is associated with change orders and claims arising from delays on two electric transmission projects in Canada. The most significant delays on these projects occurred in the first and third quarters of 2021 and were related to the COVID-19 pandemic that negatively impacted productivity. Additionally, during the third quarter of 2021, both of the projects were negatively impacted by unrelated wildfires, and one was also impacted by acceleration of the project timeline, all of which resulted in change orders. Quanta believes that the contracts for these projects entitle it to recover certain amounts associated with these delays. The aggregate amounts related to change orders and claims, which are included in “Contract assets” in the accompanying condensed consolidated balance sheets, represent management’s estimates of additional contract revenues that have been earned and are probable of collection. However, Quanta’s estimates could change, and the amount ultimately realized could be significantly higher or lower than the estimated amount. Revenues by Category The following tables present Quanta’s revenue disaggregated by geographic location, as determined by the job location, and contract type (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 By primary geographic location: United States $ 2,892,446 86.2 % $ 2,629,606 87.1 % $ 7,669,360 84.7 % $ 7,105,568 85.7 % Canada 382,072 11.4 % 320,576 10.6 % 1,123,077 12.4 % 917,621 11.1 % Australia 52,804 1.6 % 49,537 1.6 % 170,719 1.9 % 156,664 1.9 % Others 25,956 0.8 % 20,442 0.7 % 93,519 1.0 % 110,634 1.3 % Total revenues $ 3,353,278 100.0 % $ 3,020,161 100.0 % $ 9,056,675 100.0 % $ 8,290,487 100.0 % Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 By contract type: Unit-price contracts $ 1,399,358 41.8 % $ 1,141,102 37.7 % $ 3,593,644 39.7 % $ 3,034,169 36.6 % Cost-plus contracts 825,622 24.6 % 702,392 23.3 % 2,247,879 24.8 % 1,958,404 23.6 % Fixed price contracts 1,128,298 33.6 % 1,176,667 39.0 % 3,215,152 35.5 % 3,297,914 39.8 % Total revenues $ 3,353,278 100.0 % $ 3,020,161 100.0 % $ 9,056,675 100.0 % $ 8,290,487 100.0 % Under fixed price contracts, as well as unit-price contracts with more than an insignificant amount of partially completed units, 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 42.5% and 47.9% of Quanta’s revenues recognized during the three months ended September 30, 2021 and 2020 were associated with this revenue recognition method, and 43.4% and 48.4% of Quanta’s revenues recognized during the nine months ended September 30, 2021 and 2020 were associated with this revenue recognition method. Contract Assets and Liabilities Contract assets and liabilities, recorded as current assets and liabilities, respectively, consisted of the following (in thousands): September 30, 2021 December 31, 2020 Contract assets $ 760,279 $ 453,832 Contract liabilities $ 501,142 $ 528,864 Contract assets and liabilities fluctuate period to period based on various factors, including, among others, changes in the number and size of projects in progress at period end and variability in billing and payment terms, such as up-front or advance billings, interim or milestone billings, deferred billings and unapproved change orders and contract claims recognized in revenues. The increase in contract assets from December 31, 2020 to September 30, 2021 was primarily due to increased working capital requirements related to progress on two large electric transmission projects in Canada and the timing of billings for such projects. Both of the projects were negatively impacted by delays related to the COVID-19 pandemic and unrelated wildfires, and one project was also impacted by acceleration of the project timeline, all of which resulted in change orders and an increase in contract assets. Revenues were positively impacted by $151.7 million during the nine months ended September 30, 2021 as a result of changes in estimates associated with performance obligations on fixed price contracts partially satisfied prior to December 31, 2020. During the nine months ended September 30, 2021, Quanta recognized revenue of approximately $381.9 million related to contract liabilities outstanding at December 31, 2020. Current and Long-Term Accounts Receivable and Allowance for Credit Losses Quanta’s historical loss ratio and its determination of risk pools, which are used to calculate expected credit losses, may be adjusted for changes in customer credit concentrations within its portfolio of financial assets, customers’ ability to pay, and other considerations, such as economic and market changes, changes to the regulatory or technological environments affecting customers and the consistency between current and forecasted economic conditions and historical economic conditions used to derive historical loss ratios. At the end of each quarter, management reassesses these and other relevant factors, including any potential effects from the currently challenged energy market and the ongoing COVID-19 pandemic. Quanta considers accounts receivable delinquent after 30 days but does not generally consider such amounts delinquent in its credit loss analysis unless the accounts receivable are at least 90 days past due. In addition to monitoring delinquent accounts, management monitors the credit quality of its receivables by, among other things, obtaining credit ratings of significant customers, assessing economic and market conditions and evaluating material changes to a customer’s business, cash flows and financial condition. Should anticipated recoveries relating to receivables fail to materialize, including anticipated recoveries relating to bankruptcies or other workout situations, Quanta could experience reduced cash flows and losses in excess of current allowances provided. For example, in July 2021 Limetree Bay Refining, LLC (Limetree Refining), a customer within Quanta’s Underground Utility and Infrastructure Solutions segment, filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code, as amended, after experiencing operational and financial difficulties and shutting down operations at its refinery. As of September 30, 2021, Quanta had $31.3 million of billed and unbilled receivables for services performed and other costs. Quanta also had $0.7 million of billed and unbilled receivables outstanding from Limetree Bay Terminals, LLC (Limetree Terminals), an affiliate of Limetree Refining that has not filed for bankruptcy. During the three months ended June 30, 2021, Quanta recorded a provision for credit loss of $23.6 million with respect to these receivables based on the current estimated amount of expected loss. However, given the uncertainties associated with the bankruptcy proceeding and the financial condition of the customers, the amount of receivables ultimately collected and the ultimate amount of credit loss recognized depends on a number of factors that are subject to change, including, among other things, the potential sale of the refinery assets by Limetree Refining, negotiations with respect to payment of the amounts owed by Limetree Terminals and the result of any preferential payment actions brought in the bankruptcy proceeding. As such, an additional allowance for credit loss may be recorded in the future, including with respect to the remaining $8.4 million of receivables owed by the customers. See Concentrations of Credit Risk in Note 10 for further discussion of the credit quality of certain other outstanding receivables due from customers that have experienced financial difficulties. Activity in Quanta’s allowance for credit losses consisted of the following (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Balance at beginning of period $ 39,713 $ 14,948 $ 16,546 $ 9,398 Cumulative effect of adoption of new credit loss standard — — — 5,067 Provision for credit losses 249 1,566 24,169 2,910 Direct write-offs charged against the allowance (253) (110) (1,006) (971) Balance at end of period $ 39,709 $ 16,404 $ 39,709 $ 16,404 Certain contracts allow customers to withhold a small percentage of billings pursuant to retainage provisions, and such amounts are generally due upon completion of the contract and acceptance of the project by the customer. Based on Quanta’s experience in recent years, the majority of these retainage balances are expected to be collected within approximately twelve months of September 30, 2021. Retainage balances with expected settlement dates within twelve months of September 30, 2021 and December 31, 2020 were $295.9 million and $306.3 million, which are included in “Accounts receivable.” Retainage balances with expected settlement dates beyond twelve months of September 30, 2021 and December 31, 2020 were each $88.2 million and are included in “Other assets, net.” 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 when amounts arise from routine lags in billing (for example, work completed during 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 September 30, 2021 and December 31, 2020, unbilled receivables included in “Accounts receivable” were $827.3 million and $472.3 million. The increase in unbilled receivables was primarily due to the ramp up of work, certain delays in billing related to a large customer and a significant amount of emergency restoration services revenues performed in the latter part of the third quarter that remained unbilled at the end of the quarter. 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 $39.5 million and $53.6 million at September 30, 2021 and December 31, 2020. 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): September 30, 2021 December 31, 2020 Cash and cash equivalents held in domestic bank accounts $ 1,664,990 $ 156,122 Cash and cash equivalents held in foreign bank accounts 31,220 28,498 Total cash and cash equivalents $ 1,696,210 $ 184,620 At September 30, 2021 and December 31, 2020, cash equivalents were $1.63 billion and $98.0 million and consisted primarily of money market investments and money market mutual funds and are discussed further in the Fair Value Measurements section within this Note 2. The proceeds received from Quanta’s issuance of senior notes on September 23, 2021 represented a significant portion of the cash and cash equivalents balance at September 30, 2021, and such proceeds were utilized to fund the acquisition of Blattner on October 13, 2021, as described further in Notes 4 and 6. 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 cash and cash equivalents held by a joint venture other than participating in distributions, to the extent made, and in the event of dissolution. Cash and cash equivalents held by Quanta’s wholly-owned captive insurance company are generally not available for use in support of its other operations. Amounts related to cash and cash equivalents held by joint ventures and the captive insurance company, which are included in Quanta’s total cash and cash equivalents balances, were as follows (in thousands): September 30, 2021 December 31, 2020 Cash and cash equivalents held by domestic joint ventures $ 13,377 $ 7,714 Cash and cash equivalents held by foreign joint ventures 4,568 3,973 Total cash and cash equivalents held by joint ventures 17,945 11,687 Cash and cash equivalents held by captive insurance company 132,916 85,014 Cash and cash equivalents not held by joint ventures or captive insurance company 1,545,349 87,919 Total cash and cash equivalents $ 1,696,210 $ 184,620 Goodwill and Other Intangible Assets Goodwill, net of accumulated impairment losses, represents the excess of cost over the fair market value of net tangible and identifiable intangible assets of acquired businesses and is stated at cost. Quanta has determined that its individual operating units represent its reporting units for the purpose of assessing goodwill impairment. Goodwill is not amortized but is tested for impairment annually in the fourth quarter of the fiscal year, or more frequently if events or circumstances arise which indicate that goodwill may be impaired. 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; an expectation of selling or disposing of a portion of a reporting unit; a significant change in market, management, business strategy or 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. Quanta did not identify any triggering events in the first three quarters of 2021 and did not recognize any goodwill impairments for the three and nine months ended September 30, 2021. Quanta’s intangible assets include customer relationships; backlog; trade names; non-compete agreements; patented rights, developed technology, and process certifications; and curriculum, all of which are subject to amortization, as well as an engineering license, which is not subject to amortization. As a result of the broader challenges in the energy market, the effect of which continues to be exacerbated by the COVID-19 pandemic, Quanta assessed the expected negative impact related to its intangible assets, particularly intangible assets associated with reporting units within the Underground Utility and Infrastructure Solutions Division. Quanta concluded that such impact is not likely to result in intangible asset impairments, and therefore no intangible asset impairments were recognized during the three and nine months ended September 30, 2021. In connection with its annual goodwill assessment in 2020, Quanta also considered the sensitivity of its fair value estimates to changes in certain valuation assumptions, including with respect to reporting units within Quanta’s Underground Utility and Infrastructure Solutions Division that have recently been negatively impacted by energy market challenges. The potential future impact of these challenges is uncertain and depends on numerous factors and could continue or increase in future periods. In particular, two Canadian pipeline-related businesses and a United States material handling services business were identified in the annual goodwill assessment to have an increased risk of goodwill impairment in the near and medium term due to the currently challenged energy market. After taking into account a 10% decrease in fair value, these reporting units would have had fair values below their carrying amounts as of December 31, 2020. The aggregate goodwill and intangible asset balances for these three businesses totaled $100.1 million and $16.0 million as of September 30, 2021. In addition, a specialized industrial services business located in the United States experienced lower demand for certain services during the year ended December 31, 2020, which has continued in 2021, as customers reduced and deferred regularly scheduled maintenance due to lack of demand for refined products, particularly certain transportation-related fuels, as a result of the COVID-19 pandemic. After taking into account a 10% decrease in fair value, the reporting unit would have had a fair value in excess of its carrying amount as of December 31, 2020; however, uncertainty as to the timing and extent of recovery of demand for refined products has increased the risk of goodwill impairment for this reporting unit. The goodwill and intangible asset balances for this reporting unit were $313.4 million and $51.9 million as of September 30, 2021. Quanta will continue to monitor the goodwill associated with these reporting units, and should they suffer additional declines in actual or forecasted financial results, the risk of goodwill impairment would increase. Investments in Affiliates and Other Entities 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. Equity method investments are carried at original cost adjusted for Quanta’s proportionate share of the investees’ income, losses and distributions. The carrying values for Quanta’s unconsolidated equity method investments were $73.8 million and $44.9 million at September 30, 2021 and December 31, 2020 and are included in “Other assets, net” in the accompanying condensed consolidated balance sheets. Quanta’s share of net income or losses of these investments is included within operating income in the accompanying condensed consolidated statements of operations when the investee is operationally integral to the operations of Quanta and is reported as “Equity in earnings (losses) of integral unconsolidated affiliates.” Quanta’s share of net income or losses of unconsolidated equity method investments that are not operationally integral to the operations of Quanta are included in “Other income (expense), net” below operating income in the accompanying condensed consolidated statements of operations. As of September 30, 2021, Quanta had receivables of $13.3 million and payables of $3.2 million from its integral unconsolidated affiliates. During the nine months ended September 30, 2020, Quanta recognized impairment losses of $8.7 million related to a non-integral equity method investment, which were primarily due to the decline in commodity prices and production volumes during 2020. These impairment losses are included in “Other income (expense), net” in the accompanying condensed consolidated statements of operations for the nine months ended September 30, 2020. In October 2021, Quanta acquired a 44% interest in an entity that provides right-of-way solutions, including site preparation and clearing, materials delivery and installation and management of permitting requirements and traffic control for approximately $18 million, subject to certain adjustments. This investment will be accounted for as an integral affiliate using the equity method of accounting. Investments in entities of 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. Additionally, certain investments provide for significant influence over the investee, but also include preferential liquidation rights, which precludes accounting for the investments under the equity method. These cost method 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 similar investment in the same company. Earnings on investments accounted for using the cost method of accounting are recognized as dividends are declared. These earnings and any impairments of cost method investments are reported in “Other income (expense), net” in the accompanying condensed consolidated statements of operations. The carrying values for investments accounted for using the cost method of accounting were $130.2 million and $39.5 million at September 30, 2021 and December 31, 2020, and these amounts are included in “Other assets, net” in the accompanying condensed consolidated balance sheets. During the three months ended March 31, 2021, Quanta acquired a minority interest in a broadband technology provider for $90.0 million. This investment includes preferential liquidation rights and is accounted for u |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS: Adoption of New Accounting Pronouncements In December 2019, the FASB issued an update that, among other things, amends the guidance related to accounting for tax law changes when an entity has a year-to-date loss in an interim period and provides guidance on how to evaluate whether a step-up in tax basis of goodwill relates to a business combination or a separate transaction. This update is effective for interim and annual periods beginning after December 15, 2020, with certain amendments applied prospectively and other amendments applied on a modified retrospective basis. Quanta adopted this update effective January 1, 2021, and it did not have a material impact on Quanta’s condensed consolidated financial statements at the date of adoption. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONS: On October 13, 2021, Quanta completed the acquisition of Blattner, a large utility-scale renewable energy infrastructure solutions provider in North America. The consideration for this transaction consisted of approximately $2.29 billion paid in cash on the date of acquisition and 3.3 million shares of Quanta common stock, which had a fair value of $345.4 million as of the date of the acquisition. The final amount of consideration for this acquisition remains subject to certain post-closing adjustments, including with respect to net working capital. Additionally, pursuant to the terms of the agreement and plan of merger, the former owners of Blattner are eligible for the potential payment of up to $300 million of contingent consideration, payable to the extent the acquired business achieves certain financial performance objectives over a three-year period beginning in January 2022. Blattner’s results will be included in Quanta’s consolidated financial statements beginning on the acquisition date. Quanta is in the process of performing procedures to determine the fair value of assets acquired and liabilities assumed related to the acquisition of Blattner, including the fair value assessment of contingent consideration, and will include the preliminary purchase price allocation in its Annual Report on Form 10-K for the year ended December 31, 2021. See Note 6 for additional information regarding the financing of this acquisition. In addition, in October 2021, Quanta acquired a business located in the United States that provides electric power construction and related services. The aggregate consideration for this acquisition included approximately $50.0 million paid or payable in cash, subject to certain adjustments, and the issuance of 42,748 shares of common stock, which had a fair value of approximately $4.0 million at the acquisition date. During the nine months ended September 30, 2021, Quanta acquired a communications services business located in the United States that performs data center connection services; a business located in the United States that designs, develops and holds a certification for the manufacture of personal protective breathing equipment and related monitoring devices primarily used in the refining and petrochemical industries, including in connection with catalyst services; a business located in Canada that provides front-end land services for infrastructure development projects in Canada and the United States; and a business located in the United States that primarily provides horizontal directional drilling services. The aggregate consideration for these acquisitions was $59.2 million paid or payable in cash (subject to certain adjustments) and 32,822 shares of Quanta common stock, which had a fair value of $2.5 million as of the applicable acquisition date. During the year ended December 31, 2020, Quanta acquired a contractor located in the United States that provides electric power distribution, transmission and substation maintenance and construction, directional boring and emergency restoration services; a professional engineering business located in the United States that provides infrastructure engineering and design services to electric utilities, gas utilities and communications services companies, as well as permitting and utility locating services; a business located in the United States that provides aviation services primarily for the utility industry; an electric power infrastructure business located in the United States that primarily provides underground conduit services; a business located in the United States that specializes in the deployment of short- and long-haul fiber optic cable and utilities; an industrial services business located in Canada that performs catalyst handling services, including changeover and shutdown maintenance, for customers in the refining and chemical industries; and a business located in the United States that provides heavy, civil, industrial and energy related services and specializes in the construction and maintenance of pipelines and metering stations. The aggregate consideration for these acquisitions was $359.6 million paid or payable in cash (subject to certain adjustments) and 1,334,469 shares of Quanta common stock, which had a fair value of $57.1 million as of the respective acquisition dates. Additionally, one of the acquisitions includes the potential payment of up to approximately $6.9 million of contingent consideration, payable if the acquired business achieves certain performance objectives over a five-year post-acquisition period. Based on the estimated fair value of the contingent consideration, Quanta recorded a $2.3 million liability as of the acquisition date. The results of the businesses acquired as of or prior to September 30, 2021 have been included in Quanta’s consolidated financial statements beginning on the respective acquisition dates, with the results of the manufacturing business, the industrial services business and the business specializing in construction and maintenance of pipelines and metering stations generally included in the Underground Utility and Infrastructure Solutions segment and the results of the remaining businesses generally included in the Electric Power Infrastructure Solutions segment. The following table summarizes the aggregate consideration paid or payable as of September 30, 2021 for the acquisitions completed in the nine months ended September 30, 2021 and the year ended December 31, 2020 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 condensed 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. Quanta is finalizing its fair value assessments for the acquired assets and assumed liabilities related to businesses acquired subsequent to September 30, 2020, and further adjustments to the purchase price allocations may occur. As of September 30, 2021, the estimated fair values of the net assets acquired were preliminary, with possible updates primarily related to tax estimates and inventory. Consideration amounts are also subject to the finalization of closing working capital adjustments. The aggregate consideration paid or payable for businesses acquired between September 30, 2020 and September 30, 2021 was allocated to acquired assets and assumed liabilities, which resulted in an allocation of $136.4 million to net tangible assets, $37.6 million to identifiable intangible assets and $35.3 million to goodwill. The following table summarizes the fair value of total consideration transferred or estimated to be transferred and the fair value of assets acquired and liabilities assumed as of September 30, 2021 for acquisitions completed in the year-to-date periods shown below (in thousands). September 30, 2021 December 31, 2020 Consideration: Cash paid or payable $ 59,226 $ 359,624 Value of Quanta common stock issued 2,479 57,119 Contingent consideration — 2,250 Fair value of total consideration transferred or estimated to be transferred $ 61,705 $ 418,993 Accounts receivable $ 10,678 $ 74,492 Contract assets 2,048 8,919 Other current assets 7,189 53,302 Property and equipment 5,651 143,276 Other assets 216 14 Identifiable intangible assets 18,506 96,827 Contract liabilities (16) (3,750) Other current liabilities (10,371) (35,112) Deferred tax liabilities, net (2,093) (3,185) Total identifiable net assets 31,808 334,783 Goodwill 29,897 84,210 Fair value of net assets acquired $ 61,705 $ 418,993 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 acquisitions completed in the nine months ended September 30, 2021 and the year ended December 31, 2020 strategically expanded Quanta’s domestic and international underground utility and infrastructure solutions and domestic electric power infrastructure solutions, which Quanta believes contributes to the recognition of goodwill. Approximately $13.3 million and $72.6 million of goodwill is expected to be deductible for income tax purposes related to acquisitions completed in the nine months ended September 30, 2021 and the year ended December 31, 2020. Quanta’s intangible assets include customer relationships; backlog; trade names; non-compete agreements; patented rights, developed technology, and process certifications; and curriculum, all of which are subject to amortization, as well as an engineering license, which is not subject to amortization. The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in the nine months ended September 30, 2021 as of the acquisition date and the related weighted average amortization periods by asset type (in thousands, except for weighted average amortization periods, which are in years). Estimated Fair Value Weighted Average Amortization Period in Years Customer relationships $ 3,063 5.6 Backlog 3,811 1.3 Trade names 1,110 14.4 Non-compete agreements 1,494 5.0 Patented rights, developed technology, and process certifications 9,028 3.5 Total intangible assets subject to amortization $ 18,506 4.2 The significant estimates used by management in determining the fair value of customer relationship intangible assets include future revenues, discount rates and customer attrition rates. The following table includes the discount rates and customer attrition rates used to determine the fair value of customer relationship intangible assets for businesses acquired during the nine months ended September 30, 2021 and the year ended December 31, 2020 as of the respective acquisition dates: 2021 2020 Range Weighted Average Range Weighted Average Discount rates 22% to 25% 22% 19% to 25% 20% Customer attrition rates 20% to 30% 23% 10% to 43% 13% The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in the three and nine months ended September 30, 2021 and 2020, 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). Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenues $ 3,357,877 $ 3,069,921 $ 9,090,656 $ 8,519,226 Gross profit $ 535,935 $ 520,866 $ 1,367,256 $ 1,254,826 Selling, general and administrative expenses $ (275,363) $ (256,608) $ (794,249) $ (740,564) Amortization of intangible assets $ (22,836) $ (22,843) $ (68,167) $ (69,742) Net income $ 175,865 $ 166,326 $ 387,713 $ 287,171 Net income attributable to common stock $ 174,832 $ 165,539 $ 383,184 $ 282,718 Earnings per share attributable to common stock: Basic $ 1.25 $ 1.17 $ 2.73 $ 1.98 Diluted $ 1.21 $ 1.14 $ 2.65 $ 1.94 The pro forma combined results of operations for the three and nine months ended September 30, 2021 and 2020 were prepared by adjusting the historical results of Quanta to include the historical results of the acquisitions completed in 2021 as if they occurred January 1, 2020. The pro forma combined results of operations for the three and nine months ended September 30, 2020 were prepared by also adjusting the historical results of Quanta to include the historical results of the acquisitions completed in 2020 as if they occurred January 1, 2019. 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; elimination of inter-company sales; 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 combined 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 $13.4 million and a loss before income taxes of $0.3 million, which included $2.0 million of acquisition-related costs, related to the acquisitions completed in 2021 are included in Quanta’s condensed consolidated results of operations for the three months ended September 30, 2021. Revenues of $14.6 million and a loss before income taxes of $0.2 million, which included $2.4 million of acquisition-related costs, related to the acquisitions completed in 2021 are included in Quanta’s condensed consolidated results of operations for the nine months ended September 30, 2021. Revenues of $55.2 million and income before income taxes of $1.0 million, which included $10.6 million acquisition-related costs, related to the acquisitions completed in 2020 are included in Quanta’s condensed consolidated results of operations for the three months ended September 30, 2020. Revenues of $63.0 million and income before income taxes of $1.0 million, which included $11.4 million of acquisition-related costs, related to the acquisitions completed in 2020 are included in Quanta’s condensed consolidated results of operations for the nine months ended September 30, 2020. |
Per Share Information
Per Share Information | 9 Months Ended |
Sep. 30, 2021 | |
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 consisted of the following (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Amounts attributable to common stock: Net income attributable to common stock $ 174,365 $ 162,913 $ 381,159 $ 275,545 Weighted average shares outstanding: Weighted average shares outstanding for basic earnings per share attributable to common stock 140,008 140,542 140,134 141,610 Effect of dilutive unvested non-participating stock-based awards 4,296 3,821 4,314 3,375 Weighted average shares outstanding for diluted earnings per share attributable to common stock 144,304 144,363 144,448 144,985 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. 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 included 0.5 million and 1.4 million weighted average participating securities for the three months ended September 30, 2021 and 2020 and 0.7 million and 1.7 million weighted average participating securities for the nine months ended September 30, 2021 and 2020. For purposes of calculating diluted earnings per share attributable to common stock, there were no adjustments required to derive Quanta’s net income attributable to common stock. Diluted earnings per share attributable to common stock is computed using the weighted average number of shares of common stock outstanding during the period adjusted for all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalents would be antidilutive. |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt Obligations | DEBT OBLIGATIONS: Quanta’s long-term debt obligations consisted of the following (in thousands): September 30, 2021 December 31, 2020 0.950% Senior Notes due October 2024 $ 500,000 $ — 2.900% Senior Notes due October 2030 1,000,000 1,000,000 2.350% Senior Notes due January 2032 500,000 — 3.050% Senior Notes due October 2041 500,000 — Borrowings under senior credit facility 415,851 148,508 Other long-term debt 51,366 46,981 Finance leases 2,253 2,228 Unamortized discount and deferred financing costs related to senior notes (28,289) (12,892) Total long-term debt obligations 2,941,181 1,184,825 Less — Current maturities of long-term debt 10,276 10,531 Total long-term debt obligations, net of current maturities $ 2,930,905 $ 1,174,294 Quanta’s current maturities of long-term debt and short-term debt consisted of the following (in thousands): September 30, 2021 December 31, 2020 Short-term debt $ 13,472 $ 4,233 Current maturities of long-term debt 10,276 10,531 Current maturities of long-term debt and short-term debt $ 23,748 $ 14,764 Senior Notes On September 23, 2021, Quanta issued $1.50 billion aggregate principal amount of senior notes consisting of: $500.0 million aggregate principal amount of 0.950% senior notes due October 2024 (the 2024 notes); $500.0 million aggregate principal amount of 2.350% senior notes due January 2032 (the 2032 notes); and $500.0 million aggregate principal amount of 3.050% senior notes due October 2041 (the 2041 notes). The cumulative proceeds received from the public offering of the 2024 notes, the 2032 notes and the 2041 notes were $1.48 billion, net of the original issue discount, underwriting discounts and deferred financing costs, which were used, along with drawings under Quanta’s senior credit facility, as amended, to acquire Blattner. Additionally, on September 22, 2020, Quanta issued $1.00 billion aggregate principal amount of 2.900% senior notes due October 2030 (the 2030 notes, and together with the 2024 notes, the 2032 notes and the 2041 notes, collectively the Senior Notes) and received proceeds of $986.7 million from the offering, net of the original issue discount, underwriting discounts and deferred financing costs. Interest on the Senior Notes is payable semi-annually in arrears as set forth below (dollars in thousands). Title of the Notes Interest Amount Payment Dates Commencement Date 0.950% Senior Notes due October 2024 $ 2,375 April 1 and October 1 April 1, 2022 2.900% Senior Notes due October 2030 $ 14,500 April 1 and October 1 April 1, 2021 2.350% Senior Notes due January 2032 $ 5,875 January 15 and July 15 July 15, 2022 3.050% Senior Notes due October 2041 $ 7,625 April 1 and October 1 April 1, 2022 In each case as further specified by the terms of the Senior Notes and the indenture and supplemental indentures governing the Senior Notes (collectively, the indenture), Quanta may redeem all or a portion of (i) the 2024 notes at any time prior to October 1, 2022 at a price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest, and at any time on or after October 1, 2022 at a price equal to 100% of the principal amount plus accrued and unpaid interest; (ii) the 2030 notes at any time prior to July 1, 2030 at a price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest, and at any time on or after July 1, 2030 at a price equal to 100% of the principal amount plus accrued and unpaid interest; (iii) the 2032 notes at any time prior to October 15, 2031 at a price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest, and at any time on or after October 15, 2031 at a price equal to 100% of the principal amount plus accrued and unpaid interest; and (iv) the 2041 notes at any time prior to April 1, 2041 at a price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest, and at any time on or after April 1, 2041 at a price equal to 100% of the principal amount plus accrued and unpaid interest. Upon the occurrence of a Change of Control Triggering Event (as defined in the indenture), unless Quanta has exercised its right to redeem the applicable series of Senior Notes in full by giving irrevocable notice to the trustee, each holder of such Senior Notes will have the right to require Quanta to purchase all or a portion of such holder’s Senior Notes of such series at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest. The indenture contains covenants that, among other things, limit Quanta’s ability to incur liens securing certain indebtedness, to engage in certain sale and leaseback transactions with respect to certain properties and to sell all or substantially all of Quanta’s assets or merge or consolidate with or into other companies. The indenture also contains customary events of default. Senior Credit Facility October 2021 Amendment On October 8, 2021, Quanta entered into an amendment to the credit agreement for its senior credit facility (the Amended Credit Agreement) that, among other things, (i) provided for a new $750.0 million term loan facility for the purpose of financing, in whole or in part, the acquisition of Blattner pursuant to the agreement and plan of merger, refinancing certain existing indebtedness of Blattner and paying certain related costs and expenses, (ii) increased the aggregate revolving commitments from $2.51 billion to $2.64 billion and (iii) extended the maturity date for revolving commitments under the senior credit facility from September 22, 2025 to October 8, 2026, which is also the maturity date for the new term loan facility. The amendment also increased the threshold amount for cross-defaults to certain debt instruments and for certain other purposes from $150.0 million to $300.0 million. After giving effect to the amendment, the aggregate amount of the credit facilities provided for under the Amended Credit Agreement is $3.39 billion. On October 13, 2021, Quanta borrowed the full amount of the $750.0 million term loan facility and used such amount, together with the net proceeds from the September 2021 offering of the 2024 notes, the 2032 notes and the 2041 notes and approximately $50.9 million of revolving loans borrowed under the senior credit facility, to pay the cash consideration for the acquisition of Blattner, as further described in Note 4. Quanta is required to make quarterly principal payments on the first business day of each January, April, July and October, beginning in January 2023, on outstanding borrowings under the new term loan facility in an amount equal to $4.7 million per quarter in 2023 and 2024, $9.4 million per quarter in 2025 and $18.8 million per quarter in 2026. The aggregate remaining principal amount outstanding for the new term loan facility must be paid on the maturity date of the senior credit facility. Quanta may voluntarily prepay the term loan borrowings from time to time, in whole or in part, without premium or penalty. Amounts borrowed under the new term loan facility bear interest, at Quanta’s option, at a rate equal to either (a) the LIBOR Rate (as defined in the Amended Credit Agreement) plus 1.000% to 1.625%, or (b) the Base Rate (as defined below) plus 0.000% to 0.625%, each as determined based on either Quanta’s Consolidated Leverage Ratio (as described below) or Quanta’s Debt Rating (as defined in the Amended Credit Agreement), whichever is more favorable to Quanta. The Consolidated Leverage Ratio is the ratio of Quanta’s total funded debt to Consolidated EBITDA (as defined in the Amended Credit Agreement). For purposes of calculating the Consolidated Leverage Ratio, total funded debt is reduced by available cash and Cash Equivalents (as defined in the Amended Credit Agreement) in excess of $25.0 million. The Base Rate equals the highest of (i) the Federal Funds Rate (as defined in the Amended Credit Agreement) plus 0.5%, (ii) Bank of America’s prime rate and (iii) the LIBOR Rate plus 1.00%. Beginning October 8, 2021, amounts borrowed in U.S. dollars under the revolving credit facility bear interest, at Quanta’s option, at a rate equal to either (a) the LIBOR Rate plus 1.125% to 1.750%, or (b) the Base Rate plus 0.125% to 0.750%, each as determined based on either Quanta’s Consolidated Leverage Ratio or its Debt Rating, whichever is more favorable to Quanta. Revolving loans borrowed in any currency other than U.S. dollars bear interest at a rate equal to the Alternative Currency Daily Rate or the Alternative Currency Term Rate (each as defined in the Amended Credit Agreement), as applicable, plus 1.125% to 1.750%, as determined based on either Quanta’s Consolidated Leverage Ratio or Quanta’s Debt Rating, whichever is more favorable to Quanta. Additionally, standby or commercial letters of credit issued under the Amended Credit Agreement are subject to a letter of credit fee of 1.125% to 1.750%; Performance Letters of Credit (as defined in the Amended Credit Agreement) issued under the Amended Credit Agreement in support of certain contractual obligations are subject to a letter of credit fee of 0.675% to 1.125%; and Quanta is subject to a commitment fee of 0.100% to 0.275% on any unused availability under the revolving credit facility, in each case as determined based on either the Quanta’s Consolidated Leverage Ratio or its Debt Rating, whichever is more favorable to Quanta. The Amended Credit Agreement contains certain covenants, including, as of the end of any fiscal quarter of Quanta, (i) a maximum Consolidated Leverage Ratio (as defined in the Amended Credit Agreement) of 3.5 to 1.0 (except that in connection with certain permitted acquisitions in excess of $200.0 million, including Quanta’s acquisition of Blattner, such ratio is 4.0 to 1.0 for the fiscal quarter in which the acquisition is completed and the four subsequent fiscal quarters) and (ii) a minimum Consolidated Interest Coverage Ratio (as defined in the Amended Credit Agreement) of 3.0 to 1.0. As of and for the three and nine months ended September 30, 2021 As of September 30, 2021, Quanta had $415.9 million of outstanding revolving loans under its senior credit facility. Of the total outstanding borrowings, $239.7 million were denominated in Canadian dollars, $142.2 million were denominated in U.S. dollars and $34.0 million were denominated in Australian dollars. As of September 30, 2021, Quanta also had $333.9 million of letters of credit issued under the senior credit facility, of which $92.8 million were denominated in currencies other than the U.S. dollar, primarily Canadian dollars. As of September 30, 2021, subject to the applicable sublimits and other terms and conditions, the remaining $1.76 billion of available commitments under the senior credit facility was available for loans or issuing new letters of credit in U.S. dollars and certain alternative currencies. Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Maximum amount outstanding $ 517,883 $ 1,462,069 $ 576,993 $ 2,023,326 Average daily amount outstanding $ 416,089 $ 1,255,171 $ 360,609 $ 1,395,207 Weighted-average interest rate 2.13 % 1.57 % 2.05 % 2.13 % As of September 30, 2021, Quanta was in compliance with all of the financial covenants under its senior credit facility. Bridge Facility Commitment On September 1, 2021, in connection with the signing of the merger agreement for the acquisition of Blattner, Quanta entered into a commitment letter, pursuant to which certain lenders committed to provide a 364-day senior unsecured bridge facility in an aggregate principal amount of up to $2.18 billion to finance the cash consideration estimated to be due at closing of the acquisition of Blattner and to pay fees and expenses incurred in connection therewith. On September 23, 2021, in accordance with the terms of the commitment letter, the aggregate commitments under the commitment letter were reduced to approximately $696.1 million concurrently with Quanta’s issuance of the 2024 notes, the 2032 notes and the 2041 notes. Additionally, concurrent with the amendment to Quanta’s senior credit facility, the remaining aggregate commitments under the commitment letter were reduced to zero and the commitment was terminated. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | LEASES: Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. The components of lease costs in the accompanying condensed consolidated statements of operations are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Lease cost Classification 2021 2020 2021 2020 Finance lease cost: Amortization of lease assets Depreciation (1) $ 231 $ 53 $ 705 $ 515 Interest on lease liabilities Interest expense 18 16 68 50 Operating lease cost Cost of services and Selling, general and administrative expenses 25,323 29,577 80,046 89,289 Short-term and variable lease cost (2) Cost of services and Selling, general and administrative expenses 176,605 160,365 494,846 478,683 Total lease cost $ 202,177 $ 190,011 $ 575,665 $ 568,537 (1) Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of operations. (2) Short-term lease cost includes both leases and rentals with initial terms of one year or less. Variable lease cost is insignificant and primarily relates to real estate leases and consists of common area maintenance charges, real estate taxes, insurance and other variable costs. Quanta has entered into arrangements with certain related parties to lease certain real property and facilities. Typically, the parties are employees of Quanta who are also the former owners of businesses acquired by Quanta, and the real properties and facilities continue to be utilized by Quanta subsequent to the acquisitions. Quanta utilizes third party market valuations to evaluate rental rates for these properties and facilities, and the lease agreements generally have remaining lease terms of up to 10 years, subject to renewal options. Related party lease expense was $2.4 million and $4.5 million for the three months ended September 30, 2021 and 2020 and $10.4 million and $13.2 million for the nine months ended September 30, 2021 and 2020. Future minimum lease payments for operating and finance leases were as follows (in thousands): As of September 30, 2021 Operating Leases Finance Leases Total Remainder of 2021 $ 23,964 $ 296 $ 24,260 2022 80,516 872 81,388 2023 58,265 666 58,931 2024 36,341 409 36,750 2025 24,449 126 24,575 Thereafter 36,996 — 36,996 Total future minimum operating and finance lease payments $ 260,531 $ 2,369 $ 262,900 Less imputed interest (20,342) (116) (20,458) Total lease liabilities $ 240,189 $ 2,253 $ 242,442 Future minimum lease payments for short-term leases, which are not recorded in the condensed consolidated balance sheets due to Quanta’s accounting policy election, were $18.7 million as of September 30, 2021. Month-to-month rental expense associated primarily with certain equipment rentals is excluded from these amounts because Quanta is unable to accurately predict future rental amounts. The weighted average remaining lease terms and discount rates were as follows: As of September 30, 2021 Weighted average remaining lease term (in years): Operating leases 4.16 Finance leases 2.90 Weighted average discount rate: Operating leases 3.9 % Finance leases 3.7 % Quanta has also guaranteed the residual value under 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 lease termination. As of September 30, 2021, the maximum guaranteed residual value of this equipment was $886.9 million. While Quanta believes that no significant payments will be made as a result of these residual value guarantees, there can be no assurance that significant payments will not be required in the future. one |
Leases | LEASES: Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. The components of lease costs in the accompanying condensed consolidated statements of operations are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Lease cost Classification 2021 2020 2021 2020 Finance lease cost: Amortization of lease assets Depreciation (1) $ 231 $ 53 $ 705 $ 515 Interest on lease liabilities Interest expense 18 16 68 50 Operating lease cost Cost of services and Selling, general and administrative expenses 25,323 29,577 80,046 89,289 Short-term and variable lease cost (2) Cost of services and Selling, general and administrative expenses 176,605 160,365 494,846 478,683 Total lease cost $ 202,177 $ 190,011 $ 575,665 $ 568,537 (1) Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of operations. (2) Short-term lease cost includes both leases and rentals with initial terms of one year or less. Variable lease cost is insignificant and primarily relates to real estate leases and consists of common area maintenance charges, real estate taxes, insurance and other variable costs. Quanta has entered into arrangements with certain related parties to lease certain real property and facilities. Typically, the parties are employees of Quanta who are also the former owners of businesses acquired by Quanta, and the real properties and facilities continue to be utilized by Quanta subsequent to the acquisitions. Quanta utilizes third party market valuations to evaluate rental rates for these properties and facilities, and the lease agreements generally have remaining lease terms of up to 10 years, subject to renewal options. Related party lease expense was $2.4 million and $4.5 million for the three months ended September 30, 2021 and 2020 and $10.4 million and $13.2 million for the nine months ended September 30, 2021 and 2020. Future minimum lease payments for operating and finance leases were as follows (in thousands): As of September 30, 2021 Operating Leases Finance Leases Total Remainder of 2021 $ 23,964 $ 296 $ 24,260 2022 80,516 872 81,388 2023 58,265 666 58,931 2024 36,341 409 36,750 2025 24,449 126 24,575 Thereafter 36,996 — 36,996 Total future minimum operating and finance lease payments $ 260,531 $ 2,369 $ 262,900 Less imputed interest (20,342) (116) (20,458) Total lease liabilities $ 240,189 $ 2,253 $ 242,442 Future minimum lease payments for short-term leases, which are not recorded in the condensed consolidated balance sheets due to Quanta’s accounting policy election, were $18.7 million as of September 30, 2021. Month-to-month rental expense associated primarily with certain equipment rentals is excluded from these amounts because Quanta is unable to accurately predict future rental amounts. The weighted average remaining lease terms and discount rates were as follows: As of September 30, 2021 Weighted average remaining lease term (in years): Operating leases 4.16 Finance leases 2.90 Weighted average discount rate: Operating leases 3.9 % Finance leases 3.7 % Quanta has also guaranteed the residual value under 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 lease termination. As of September 30, 2021, the maximum guaranteed residual value of this equipment was $886.9 million. While Quanta believes that no significant payments will be made as a result of these residual value guarantees, there can be no assurance that significant payments will not be required in the future. one |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | EQUITY: Stock repurchases Quanta repurchased the following shares of common stock in the open market under the stock repurchase programs (in thousands): Quarter ended: Shares Amount September 30, 2021 185 $ 16,828 June 30, 2021 314 $ 29,450 March 31, 2021 222 $ 17,710 December 31, 2020 720 $ 49,949 September 30, 2020 — $ — June 30, 2020 — $ — March 31, 2020 5,960 $ 200,000 As of September 30, 2021, Quanta is authorized to repurchase up to an additional $472.8 million in shares of common stock through June 30, 2023 under its existing stock repurchase program. 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. During the three months ended September 30, 2021 and 2020, cash payments related to stock repurchases were $17.8 million and none, and during the nine months ended September 30, 2021 and 2020, cash payments related to stock repurchases were $66.7 million and $200.0 million. Dividends Quanta declared the following cash dividends and cash dividend equivalents during 2020 and the first nine months of 2021 (in thousands, except per share amounts): Declaration Record Payment Dividend Dividends Date Date Date Per Share Declared August 27, 2021 October 1, 2021 October 15, 2021 $ 0.06 $ 8,638 May 27, 2021 July 1, 2021 July 15, 2021 $ 0.06 $ 8,650 March 25, 2021 April 6, 2021 April 15, 2021 $ 0.06 $ 8,429 December 11, 2020 January 4, 2021 January 15, 2021 $ 0.06 $ 8,933 August 26, 2020 October 1, 2020 October 15, 2020 $ 0.05 $ 7,244 May 28, 2020 July 1, 2020 July 15, 2020 $ 0.05 $ 7,182 March 26, 2020 April 6, 2020 April 15, 2020 $ 0.05 $ 7,184 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION: Quanta has stock-based compensation awards outstanding under two equity incentive plans, the Quanta Services, Inc. 2011 Omnibus Equity Incentive Plan and the Quanta Services, Inc. 2019 Omnibus Equity Incentive Plan. For descriptions and further information regarding these plans, refer to Note 12 of the Notes to Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data in Part II of the 2020 Annual Report. RSUs to be Settled in Common Stock A summary of the activity for RSUs to be settled in common stock for the nine months ended September 30, 2021 and 2020 is set forth below (shares in thousands): 2021 2020 RSUs Weighted Average RSUs Weighted Average Unvested at January 1 3,869 $37.57 3,265 $35.34 Granted 945 $82.75 2,008 $39.65 Vested (1,442) $36.92 (1,228) $35.68 Forfeited (119) $47.23 (114) $36.26 Unvested at period ended September 30 3,253 $50.71 3,931 $37.41 The grant date fair value for RSUs to be settled in common stock is based on the closing price of Quanta’s common stock on the date of grant. The approximate fair values of RSUs settled in common stock during the nine months ended September 30, 2021 and 2020 were $121.7 million and $48.8 million. During the nine months ended September 30, 2021 and 2020, Quanta recognized $48.8 million and $41.0 million of non-cash stock-based compensation expense related to RSUs to be settled in common stock. Such expense is recorded in “Selling, general and administrative expenses.” As of September 30, 2021, there was $101.0 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 2.21 years. In October 2021, subsequent to Quanta’s acquisition of Blattner, Quanta granted 0.7 million RSUs to be settled in common stock, which had a fair market value of $72.3 million at the date of grant, to certain employees of Blattner that are continuing as employees after the acquisition. These awards are subject to forfeiture, restrictions on transfer and certain other conditions until vesting, which occurs in annual installments over periods ranging from five PSUs to be Settled in Common Stock A summary of the activity for PSUs to be settled in common stock for the nine months ended September 30, 2021 and 2020 is set forth below (shares in thousands): 2021 2020 PSUs Weighted Average PSUs Weighted Average Unvested at January 1 1,047 $37.65 848 $33.20 Granted 174 $90.44 436 $34.59 Vested (268) $38.28 (238) $17.48 Forfeited (11) $36.90 — N/A Unvested at September 30 942 $47.27 1,046 $37.35 The grant date fair value for PSUs is determined as follows: (i) for the portion of the awards based on company financial and operational performance metrics, by utilizing the closing price of Quanta’s common stock on the date of grant and (ii) for the portion of the awards based on total shareholder return, by utilizing a Monte Carlo simulation valuation methodology. The Monte Carlo simulation valuation methodology applied the following key inputs: 2021 2020 Valuation date price based on March 25, 2021 and March 26, 2020 closing stock prices of Quanta common stock $83.48 $31.49 Expected volatility 36 % 34 % Risk-free interest rate 0.26 % 0.35 % Term in years 2.77 2.76 During the nine months ended September 30, 2021 and 2020, Quanta recognized $15.4 million and $17.4 million in compensation expense associated with PSUs. Such expense is recorded in “Selling, general and administrative expenses.” During both the nine months ended September 30, 2021 and 2020, 0.5 million shares of common stock were earned and either issued or deferred for future issuance in connection with PSUs. RSUs to be Settled in Cash Compensation expense related to RSUs to be settled in cash was $13.7 million and $5.3 million for the nine months ended September 30, 2021 and 2020. 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 weighted average shares outstanding for earnings per share, and the estimated earned value of such RSUs is classified as a liability. Quanta paid $13.2 million and $4.3 million to settle liabilities related to cash-settled RSUs in the nine months ended September 30, 2021 and 2020. Accrued liabilities for the estimated earned value of outstanding RSUs to be settled in cash were $7.4 million and $8.7 million at September 30, 2021 and December 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES: Investments in Affiliates and Other Entities As described in Note 2, Quanta holds investments in various entities, including joint venture entities that provide infrastructure-related services under specific customer contracts and partially owned entities that own, operate and/or maintain certain infrastructure assets. As of September 30, 2021, Quanta had committed to contribute $13.6 million to certain new investments in joint venture entities. The timing of such contributions is not certain, but they are expected to occur in the next twelve months. If losses are incurred by entities in which Quanta holds an interest, they are generally shared ratably based on the percentage ownership of the participants in the structures. However, in Quanta’s joint venture structures that provide infrastructure-related 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, and therefore Quanta can be liable for full performance of the contract with the customer. Additionally, in circumstances where Quanta’s participation in a joint venture qualifies as a general partnership, Quanta can be liable for all 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 liabilities. Additionally, typically each joint venture participant agrees to indemnify the other participant for any liabilities incurred in excess of what the other participant is obligated to bear under the respective joint venture agreement or in accordance with the scope of work subcontracted to each participant. It is possible, however, that Quanta could be required to pay or perform obligations in excess of its share if another participant 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. However, to the extent any such claims arise, they could be material and could adversely affect Quanta’s consolidated business, financial condition, results of operations and cash flows. Committed Expenditures Quanta has capital commitments for the expansion of its equipment fleet in order to accommodate manufacturer lead times on certain types of vehicles. As of September 30, 2021, Quanta had $58.5 million of production orders with expected delivery dates in the fourth quarter of 2021 and $106.9 million of production orders with expected delivery dates in 2022, $68.4 million of which is anticipated to occur in the first half of 2022. 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 under certain master equipment lease agreements, thereby releasing Quanta from its equipment purchase 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, property damage, breach of contract, negligence or gross negligence, environmental liabilities, wage and hour and other employment-related damages, punitive damages, consequential 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. Peru Project Dispute In 2015, Redes Andinas de Comunicaciones S.R.L. (Redes), a majority-owned subsidiary of Quanta, entered into two separate contracts with an agency of the Peruvian Ministry of Transportation and Communications (MTC), currently Programa Nacional de Telecomunicaciones (PRONATEL), as successor to Fondo de Inversion en Telecomunicaciones (FITEL), pursuant to which Redes would design, construct and operate certain telecommunication networks in rural regions of Peru. The aggregate consideration provided for in the contracts was approximately $248 million, consisting of approximately $151 million to be paid during the construction period and approximately $97 million to be paid during a 10-year post-construction operation and maintenance period. At the beginning of the project, FITEL made advance payments totaling approximately $87 million to Redes, which were secured by two on-demand advance payment bonds posted by Redes to guarantee proper use of the payments in the execution of the project. Redes also provided two on-demand performance bonds in the aggregate amount of $25 million to secure performance of its obligations under the contracts. During the construction phase, the project experienced numerous challenges and delays, primarily related to issues which Quanta believes were outside of the control of and not attributable to Redes, including, among others, weather-related issues, local opposition to the project, permitting delays, the inability to acquire clear title to certain required parcels of land and other delays which Quanta believes were attributable to FITEL/PRONATEL. In response to various of these challenges and delays, Redes requested and received multiple extensions to certain contractual deadlines and relief from related liquidated damages. However, in April 2019, PRONATEL provided notice to Redes claiming that Redes was in default under the contracts due to the delays and that PRONATEL would terminate the contracts if the alleged defaults were not cured. Redes responded by claiming that it was not in default, as the delays were due to events not attributable to Redes, and therefore PRONATEL was not entitled to terminate the contracts. PRONATEL subsequently terminated the contracts for alleged cause prior to completion of Redes’ scope of work, exercised the on-demand performance bonds and advance payment bonds against Redes, and indicated its intention to claim damages, including a verbal allegation of approximately $45 million of liquidated damages under the contracts. In August 2020, Redes received a formal claim from PRONATEL for liquidated damages in the amount of approximately $38 million, which represents the U.S. dollar equivalent of the amount asserted based on the September 30, 2021 exchange rate. In May 2019, Redes filed for arbitration before the Court of International Arbitration of the International Chamber of Commerce (ICC) against PRONATEL and the MTC. In the arbitration, Redes claims that PRONATEL: breached and wrongfully terminated the contracts; wrongfully executed the advance payment bonds and the performance bonds; and is not entitled to the alleged amount of liquidated damages. In addition, Redes is seeking compensation for all damages arising from PRONATEL’s actions, including but not limited to (i) repayment of the amounts collected by PRONATEL under the advance payment bonds and the performance bonds; (ii) payment of amounts owed for work completed by Redes under the contracts; (iii) lost income in connection with Redes’ future operation and maintenance of the networks; and (iv) other related costs and damages to Redes as a result of the breach and improper termination of the contracts (including construction costs caused by the delays and costs related to the transfer of the networks). The amount claimed by Redes in this arbitration is approximately $190 million. In May 2021, PRONATEL and the MTC filed their counter memorial and counterclaims in the ICC arbitration, requesting: (i) that Redes’ claims for breach of contract be rejected; (ii) a declaration that the execution of the advance payment bonds and the performance bonds was valid, and that the funds may be applied towards any debt owed by Redes; (iii) a declaration that the liquidated damages asserted by PRONATEL apply; (iv) that Redes’ claim for payment of amounts owed for work completed as a result of contractual reconciliation of balances be rejected and that any reconciliation of balances approved by the arbitration panel exclude the funds from the performance bonds; (v) that Redes’ claims for damages be rejected; (vi) a declaration that the contract terminations by PRONATEL were valid; and (vii) that Redes reimburse all funds it received from PRONATEL. In addition, PRONATEL alleges that Redes did not satisfy the contractual requirements for the transfer of the networks, which Redes disputes. In July 2021, Redes filed its statement of defense in reply to the counter memorial and counterclaims of PRONATEL and the MTC, in which it disputes all claims made by PRONATEL and the MTC and maintains the positions on its claims against PRONATEL and the MTC in the arbitration. In August 2021, PRONATEL and the MTC filed a rejoinder statement with their position on the merits and damages, which did not present any new claims, and in October 2021, Redes filed a rejoinder with respect to the counterclaims of PRONATEL and the MTC. The arbitration hearing on the merits is presently scheduled to take place in November 2021. As of the date of the contract terminations, Redes had incurred costs of approximately $157 million related to the design and construction of the project and had received approximately $100 million of payments (inclusive of the approximately $87 million advance payments). Furthermore, upon completion of the transfer of the networks (as completed at the time of the contract terminations) to PRONATEL, which was required upon termination of the contracts and was completed in 2020, PRONATEL and the MTC are able to possess the networks, for which PRONATEL has paid approximately $100 million while also collecting approximately $112 million of bond proceeds. Quanta believes that PRONATEL’s actions represent an abuse of power and unfair and inequitable treatment and that PRONATEL and the MTC have been unjustly enriched. Specifically, under the terms of the contracts, the advance payment bonds were to be exercised only if it is determined that Redes did not use the advance payments for their intended purpose, in which case Redes would be obligated to return the portion of the advance payments not properly used. In connection with PRONATEL exercising the bonds, Redes was not afforded the opportunity to provide evidence of its proper use of the advance payments for project expenditures. Redes has incurred substantially more than the advance payment amounts in the execution of the project, and Quanta believes Redes has used the advance payment amounts for their intended purpose. Quanta believes Redes is entitled to all amounts described in its claims above and intends to vigorously pursue those claims in the pending ICC arbitration proceeding. However, as a result of the contract terminations and the inherent uncertainty involved in arbitration proceedings and recovery of amounts owed, there can be no assurance that Redes will prevail on those claims or in defense of liquidated damages claims or any other claims asserted by PRONATEL. As a result, during the three months ended June 30, 2019, Quanta recorded a charge to earnings of $79.2 million, which included a reduction of previously recognized earnings on the project, a reserve against a portion of the project costs incurred through the project termination date, an accrual for a portion of the alleged liquidated damages, and the estimated costs to complete the project turnover and close out the project. The reduction of previously recognized earnings on the project included $14.5 million related to the correction of prior period errors associated with the determination of total estimated project costs and the resulting revenue recognized. Quanta assessed the materiality of the prior period errors and determined that the errors were immaterial individually and in the aggregate to its previously issued financial statements. As of September 30, 2021, after taking into account the above charge, Quanta had a contract receivable of approximately $120 million related to the project, which includes the approximately $87 million PRONATEL collected through exercise of the advance payment bonds. The contract receivable from PRONATEL is included in “Other assets, net” in the accompanying condensed consolidated balance sheet as of September 30, 2021. Quanta also reserves the right to seek full compensation for the loss of its investment under applicable legal regimes, including investment treaties and customary international law, as well as to seek resolution through direct discussions with PRONATEL or the MTC. In connection with these rights, in May 2020 Quanta’s Dutch subsidiary delivered to the Peruvian government an official notice of dispute arising from the termination of the contracts and related acts by PRONATEL (which are attributable to Peru) under the Agreement on the Encouragement and Reciprocal Protection of Investments between the Kingdom of the Netherlands and the Republic of Peru (Investment Treaty). The Investment Treaty protects Quanta’s subsidiary’s indirect ownership stake in Redes and the project, and provides for rights and remedies distinct from the ICC arbitration. In December 2020, Quanta’s Dutch subsidiary filed a request for the institution of an arbitration proceeding against Peru with the International Centre for Settlement of Investment Disputes (ICSID) related to Peru’s breach of the Investment Treaty, which was registered by ICSID in January 2021. In the ICSID arbitration, Quanta’s Dutch subsidiary claims, without limitation, that Peru: (i) treated the subsidiary’s investment in Redes and the project unfairly and inequitably; and (ii) effectively expropriated the subsidiary’s investment in Redes and the project. In addition, Quanta’s Dutch subsidiary is seeking full compensation for all damages arising from Peru’s actions, including but not limited to (i) the fair market value of the investment and/or lost profits; (ii) attorneys’ fees and arbitration costs; (iii) other related costs and damages and (iv) pre- and post-award interest. If Quanta is not successful in the pending arbitration proceedings, including the ICC arbitration scheduled for November 2021, this matter could result in an additional significant loss that could have a material adverse effect on Quanta’s consolidated results of operations and cash flows. However, based on the information currently available and the status of the pending arbitration proceedings, Quanta is not able to determine a range of reasonably possible additional loss, if any, with respect to this matter. Maurepas Project Dispute During the third quarter of 2017, Maurepas Pipeline, LLC (Maurepas) notified QPS Engineering, LLC (QPS), a subsidiary of Quanta, of its 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, and in June 2019 QPS filed suit against SemGroup Corporation (now Energy Transfer LP), the parent company of Maurepas, under the parent guarantee issued to secure payment from Maurepas on the project. QPS is seeking to recover $22 million that it believes has been wrongfully withheld, which represents the maximum liability for liquidated damages pursuant to the contract terms. In July and August 2018, QPS also received notice from Maurepas claiming certain warranty defects on the project. In July 2019, Maurepas filed suit against QPS and Quanta, pursuant to a parent guarantee, for damages related to the alleged warranty defects and for a declaratory judgment related to the liquidated damages claim, subsequently claiming approximately $59 million in damages related to a portion of the alleged warranty defects. The lawsuits relating to these claims have been consolidated and are pending in the Tulsa County District Court in Oklahoma. Quanta is continuing to evaluate the claimed warranty defects and, if they exist, the appropriate remedy. At this time, Quanta disputes the extent of the alleged defects or has not been able to substantiate them. As of September 30, 2021, Quanta had recorded an accrual with respect to this matter based on its current estimated amount of probable loss. Based on the information currently available, including documentation received in the discovery process, Quanta estimates the range of additional reasonably possible loss in connection with this matter is between no additional loss and the amount claimed by Maurepas with respect to the alleged warranty defects and liquidated damages, less the accrued amount. Upon final resolution of this matter, any liquidated damages or warranty defect damages in excess of Quanta’s current loss accrual would be recorded as additional costs on the project. 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. During 2019 and 2020, the parties filed additional summary judgment and other motions and a bench trial on liability and damages was held. Liability and damages have been determined by the trial court, with the amount of liability for TNS, including interest through the date of the trial court’s orders, determined to be approximately $9.5 million. 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. The amount determined by the trial court includes damages and interest, but does not include attorneys’ fees or costs. In July 2021, the plaintiff class filed a motion for approval of approximately $37.0 million in attorneys’ fees, and in October 2021, Quanta filed a response to the motion opposing approval of substantially all of the claimed attorneys’ fees. 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. However, Quanta currently believes that, due to solvency issues, any contribution from the staffing companies may not be substantial. 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, a final determination with respect to any attorneys’ fees or additional costs or 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 $9.5 million, plus the final amount of any attorneys’ fees and expenses awarded to the plaintiff class. Hallen Acquisition Assumed Liability In August 2019, in connection with the acquisition of The Hallen Construction Co., Inc. (Hallen), Quanta assumed certain contingent liabilities associated with a March 2014 natural gas-fed explosion and fire in the Manhattan borough of New York City, New York. The incident resulted in, among other things, loss of life, personal injury and the destruction of two buildings and other property damage. After investigation, the National Transportation Safety Board determined that the probable cause of the incident was the failure of certain natural gas infrastructure installed by Consolidated Edison, Inc. (Con Ed) and the failure of certain sewer infrastructure maintained by the City of New York. Pursuant to a contract with Con Ed, Hallen had performed certain work related to such natural gas infrastructure and agreed to indemnify Con Ed for certain claims, liabilities and costs associated with its work. Numerous lawsuits are pending in New York state courts related to the incident, which generally name Con Ed, the City of New York and Hallen as defendants. These lawsuits are at various preliminary stages and generally seek unspecified damages and, in some cases, punitive damages, for wrongful death, personal injury, property damage and business interruption. As of September 30, 2021, Quanta had not recorded an accrual related to this matter. Hallen’s liabilities associated with this matter are expected to be covered under applicable insurance policies or contractual remedies negotiated by Quanta with the former owners of Hallen. If a loss becomes probable and estimable with respect to this matter, Quanta expects to accrue its estimated liability and a receivable in the same amount. However, the ultimate amount of liability in connection with this matter remains subject to uncertainties associated with pending litigation, including, among other things, the apportionment of liability among the defendants and other responsible parties and the likelihood and amount of potential damages claims. As a result, this matter could result in a loss that is in excess of, or not covered by, such insurance or contractual remedies, which could have a material adverse effect on Quanta’s consolidated financial condition, results of operations and cash flows. 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, communications and energy companies, governmental entities, general contractors, and builders, owners and managers of commercial and industrial properties located primarily in the United States, Canada and Australia. While Quanta generally has certain statutory lien rights with respect to services provided, Quanta is subject to potential credit risk related to business, economic and financial market conditions that affect these customers and locations, which has been heightened as a result of the unfavorable and uncertain economic and financial market conditions resulting from the ongoing COVID-19 pandemic and the currently challenged energy market. 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. For example, a customer within Quanta’s Underground Utility and Infrastructure Solutions segment encountered financial difficulties during 2020 that resulted in nonpayment of $27.5 million of receivables, plus accrued interest. As a result of the nonpayment, Quanta decided to foreclose the liens on the pipeline asset in order to recover the outstanding amount. During the three months ended September 30, 2021, Quanta entered into a settlement with the customer resulting in the sale of the pipeline asset to a third party and pursuant to which Quanta received $10.0 million of the amount owed and the right to receive payment of the remainder of the receivables in quarterly installments from the third party based on the cash flows generated by the pipeline and certain related assets. As a result, the remaining receivable balance of $17.5 million was reclassified to long-term receivables at September 30, 2021. Quanta also retained a security interest in the pipeline asset to secure payment of the remaining amount owed and believes that the value of the pipeline asset is in excess of such amount. However, the ultimate outcome with respect to the amount owed remains uncertain and is based on a number of assumptions that are potentially subject to change, including the future financial performance of the third party and the cash flows generated by the pipeline asset, as well as the future value of the pipeline asset. As a result, the amount ultimately collected could be materially less than the amount owed. Additionally, in July 2021 Limetree Refining, a customer within Quanta’s Underground Utility and Infrastructure Solutions segment, filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code, as amended, after experiencing operational and financial difficulties and shutting down operations at its refinery. See Note 2 for further information related to this customer. At September 30, 2021, the net receivable position of one customer within Quanta’s Electric Power Infrastructure Solutions segment, when combined with the net receivable position of a joint venture in which such customer owns a 50% interest, represented 12% of Quanta’s consolidated net receivable position. At December 31, 2020, 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 three and nine months ended September 30, 2021 or 2020. Insurance Quanta is insured for, among other things, employer’s liability, workers’ compensation, auto liability, aviation and general liability claims. 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. Deductibles for the employer’s liability and workers’ compensation programs are $5.0 million per occurrence, and deductibles for the auto liability and general liability programs are $15.0 million per occurrence. 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 $0.8 million per claimant per year. As of September 30, 2021 and December 31, 2020, the gross amount accrued for employer’s liability, workers’ compensation, auto liability, general liability, and group health claims totaled $316.8 million and $319.5 million, with $232.8 million and $238.0 million considered to be long-term and included in “Insurance and other non-current liabilities.” Related insurance recoveries/receivables as of September 30, 2021 and December 31, 2020 were $26.1 million and $35.6 million, of which $0.4 million and $0.4 million are included in “Prepaid expenses and other current assets” and $25.7 million and $35.2 million are included in “Other assets, net.” Quanta renews its insurance policies on an annual basis, and therefore deductibles and levels of insurance coverage may change in future periods. In addition, insurers may cancel Quanta’s coverage or determine to exclude certain items from coverage, including wildfires, or Quanta may elect not to obtain certain types or incremental levels of insurance based on the potential benefits considered relative to the cost of such insurance, or coverage may not be available at reasonable and competitive rates. In any such event, Quanta’s overall risk exposure would increase, which could negatively affect its results of operations, financial condition and cash flows. For example, due to the increased occurrence and future risk of wildfires in California and other areas in the western United States, Australia and other locations, insurers have reduced coverage availability and increased the cost of insurance coverage for such events in recent years. As a result, Quanta’s level of insurance coverage for wildfire events has decreased, including in connection with recent annual insurance renewals, and the current level of coverage may not be sufficient to cover potential losses in connection with these events. Additionally, Quanta’s third-party insurers could decide to further reduce, exclude or increase the cost of coverage for wildfires or other events in connection with insurance renewals in the future. 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 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. As of September 30, 2021, Quanta had $333.9 million in outstanding letters of credit under its senior credit facility securing its casualty insurance program and various other contractual commitments. These are irrevocable stand-by letters of credit with maturities generally expiring at various times throughout 2021 and 2022. Quanta expects to renew the majority of t |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION: Quanta currently presents its operations under two reportable segments: (1) Electric Power Infrastructure Solutions and (2) Underground Utility and Infrastructure Solutions. 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 multiple 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: the Electric Power Infrastructure Solutions Division and the Underground Utility and Infrastructure Solutions Division. These internal divisions are closely aligned with the reportable segments, and operating units are assigned to divisions based on the predominant type of work performed. 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. Classification of operating unit revenues by type of work for segment reporting purposes can 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): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenues: Electric Power Infrastructure Solutions $ 2,328,468 $ 2,107,621 $ 6,536,363 $ 5,667,566 Underground Utility and Infrastructure Solutions 1,024,810 912,540 2,520,312 2,622,921 Consolidated revenues $ 3,353,278 $ 3,020,161 $ 9,056,675 $ 8,290,487 Operating income (loss) : Electric Power Infrastructure Solutions (1)(2) $ 288,283 $ 268,376 $ 724,217 $ 581,030 Underground Utility and Infrastructure Solutions 68,167 76,220 100,917 128,747 Corporate and Non-Allocated Costs (108,373) (102,381) (301,677) (273,909) Consolidated operating income $ 248,077 $ 242,215 $ 523,457 $ 435,868 Depreciation: Electric Power Infrastructure Solutions $ 37,196 $ 30,637 $ 110,925 $ 88,337 Underground Utility and Infrastructure Solutions 20,958 21,313 63,183 64,280 Corporate and Non-Allocated Costs 3,462 4,294 12,372 12,563 Consolidated depreciation $ 61,616 $ 56,244 $ 186,480 $ 165,180 ( 1 ) As of December 31, 2020, Quanta had substantially completed the exit of its operations in Latin America. For the three and nine months ended September 30, 2020, operating income for the Electric Power Infrastructure Solutions segment included $15.4 million and $46.9 million of operating losses related to Latin American operations. (2) Operating income for the Electric Power Infrastructure Solutions segment includes equity in earnings of integral unconsolidated affiliates that are operationally integral to the operations of Quanta, which primarily consists of equity in earnings related to Quanta’s equity interest in LUMA. 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, office equipment, buildings and leasehold improvements, and certain units 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 the three months ended September 30, 2021 and 2020, Quanta derived $460.8 million and $390.6 million of its revenues from foreign operations. During the nine months ended September 30, 2021 and 2020, Quanta derived $1.39 billion and $1.18 billion of its revenues from foreign operations. Of Quanta’s foreign revenues, 83% and 82% were earned in Canada during the three months ended September 30, 2021 and 2020 and 81% and 77% were earned in Canada during the nine months ended September 30, 2021 and 2020. In addition, Quanta held property and equipment of $317.6 million and $336.4 million in foreign countries, primarily Canada, as of September 30, 2021 and December 31, 2020. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2021 | |
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 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Accounts and notes receivable $ (411,890) $ (322,579) $ (299,857) $ 37,541 Contract assets (96,423) 21,950 (308,849) 121,999 Inventories 5 8,655 (6,139) 6,787 Prepaid expenses and other current assets 37,406 19,655 (4,943) 70,133 Accounts payable and accrued expenses and other non-current liabilities 230,631 235,633 289,833 147,888 Contract liabilities (1,397) (79,964) (27,027) (73,567) Other, net (6,027) (7,813) (15,205) (20,066) Net change in operating assets and liabilities, net of non-cash transactions $ (247,695) $ (124,463) $ (372,187) $ 290,715 Reconciliations of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of such amounts shown in the statements of cash flows are as follows (in thousands): September 30, 2021 2020 Cash and cash equivalents $ 1,696,210 $ 216,935 Restricted cash included in “Prepaid expenses and other current assets” 2,108 1,252 Restricted cash included in “Other assets, net” 778 915 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 1,699,096 $ 219,102 June 30, 2021 2020 Cash and cash equivalents $ 212,473 $ 530,670 Restricted cash included in “Prepaid expenses and other current assets” 1,460 1,266 Restricted cash included in “Other assets, net” 782 917 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 214,715 $ 532,853 December 31, 2020 2019 Cash and cash equivalents $ 184,620 $ 164,798 Restricted cash included in “Prepaid expenses and other current assets” 1,275 4,026 Restricted cash included in “Other assets, net” 913 921 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 186,808 $ 169,745 Restricted cash includes any cash that is legally restricted as to withdrawal or usage. Supplemental cash flow information related to leases and rental purchase options is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (25,331) $ (29,333) $ (79,730) $ (88,570) Operating cash flows from finance leases $ (18) $ (16) $ (68) $ (50) Financing cash flows from finance leases $ (168) $ (102) $ (688) $ (525) Lease assets obtained in exchange for lease liabilities: Operating leases $ 17,081 $ 16,619 $ 41,686 $ 56,970 Finance leases $ 112 $ 275 $ 398 $ 1,158 Rental purchase option assets obtained in exchange for rental purchase option liabilities $ 1,129 $ 3,306 $ 7,009 $ 13,229 Additional supplemental cash flow information is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cash (paid) received during the period for — Interest paid $ (2,260) $ (8,443) $ (26,883) $ (30,704) Income taxes paid $ (35,740) $ (86,077) $ (103,225) $ (149,690) Income tax refunds $ 2,419 $ 1,087 $ 9,211 $ 5,545 During the nine months ended September 30, 2020, in connection with the disposition of a small business, Quanta recorded a note receivable in exchange for the transfer of $8.5 million of inventory. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTS: On October 13, 2021, Quanta completed the acquisition of Blattner, a large utility-scale renewable energy infrastructure solutions provider located in North America. The consideration for this transaction, which remains subject to certain post-closing adjustments, consisted of approximately $2.29 billion paid in cash on the date of acquisition and 3.3 million shares of Quanta common stock, which had a fair value of $345.4 million as of the date of the acquisition. See Note 1 and Note 4 for additional information on Blattner and Quanta’s acquisition of Blattner. Additionally, on October 8, 2021, Quanta amended its senior credit facility to, among other things, provide for a new $750.0 million term loan facility, increase the aggregate revolving commitments from $2.51 billion to $2.64 billion and extend the maturity date for the revolving commitments from September 2025 to October 2026. Quanta used proceeds from the new term loan, together with the net proceeds from its offering of senior notes in September 2021 and revolving loans borrowed under the senior credit facility, to finance the cash portion of the consideration paid in connection with the acquisition of Blattner. See Note 6 for additional information regarding the amendment to Quanta’s senior credit facility. In October 2021, Quanta also acquired (i) a 44% interest in an entity that will be accounted for as an integral affiliate using the equity method of accounting and (ii) a business located in the United States that provides electric power construction and related services. See Note 2 and Note 4 for additional information on this investment and acquisition. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The condensed 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 condensed consolidated financial statements also include the accounts of certain of Quanta’s investments in joint ventures, which are either consolidated or proportionately consolidated. 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% in the affiliated entity, are accounted for using the equity method. Unless the context requires otherwise, references to Quanta include Quanta Services, Inc. and its consolidated subsidiaries. |
Interim Condensed Consolidated Financial Information | These unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP), have been condensed or omitted pursuant to those rules and regulations. Quanta believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income and cash flows with respect to the interim condensed consolidated financial statements have been included. The results of operations and comprehensive income for the interim periods are not necessarily indicative of the results for the entire fiscal year. The results of Quanta have historically been subject to significant seasonal fluctuations. |
Use of Estimates and Assumptions | The preparation of financial statements in conformity with GAAP 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 revenue recognition for construction contracts, including contractual change orders and claims; allowance for credit losses; 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; multiemployer pension plan withdrawal liabilities; contingent liabilities associated with, among other things, legal proceedings and claims, parent guarantees and indemnity obligations; estimated insurance claim recoveries; stock-based compensation; operating results of reportable segments; provision for income taxes; and uncertain tax positions. |
Revenue Recognition | Quanta’s services may be provided pursuant to master service agreements (MSAs), repair and maintenance contracts and fixed price and non-fixed price construction contracts. These contracts are classified into three categories based on the methods by which transaction prices are determined and revenue is recognized: unit-price contracts, cost-plus contracts and fixed price contracts. Transaction prices for unit-price 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. Performance Obligations At September 30, 2021 and December 31, 2020, the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations was approximately $4.37 billion and $3.99 billion, of which 78.7% and 71.2% were expected to be recognized in the subsequent twelve months. These amounts represent management’s estimates 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 had not yet begun as of such dates. 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 are potential orders under MSAs and non-fixed price contracts expected to be completed within one year. 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. Some of the factors that can result in positive changes in estimates on projects include successful execution through project risks, reduction of estimated project costs or increases of estimated revenues. Some of the factors that can result in negative changes in estimates include concealed or unknown site conditions; changes to or disputes with customers regarding the scope of services; changes in estimates related to the length of time to complete a performance obligation; changes or delays with respect to permitting and regulatory requirements; changes in the cost or availability of equipment, commodities, materials or skilled labor; unanticipated costs or claims due to delays or failure to perform by customers or third parties; customer failure to provide required materials or equipment; errors in engineering, specifications or designs; project modifications; adverse weather conditions, natural disasters, and other emergencies (including the ongoing COVID-19 pandemic); and performance and quality issues causing delay (including payment of liquidated damages) or requiring rework or replacement. Any changes in estimates may result in changes to profitability or losses associated with the related performance obligations. Changes in estimated revenues, costs and profit are recognized on a cumulative catch-up basis and recorded in the period they are determined to be probable and can be reasonably estimated. 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 or the reversal of previously recognized revenue if the currently estimated revenue is less than the previous estimate. The impact of a change in contract 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. Changes in estimates can also result in contract losses, which are recognized in full when they are determined to be probable and can be reasonably estimated. Current and Long-Term Accounts Receivable and Allowance for Credit Losses Quanta’s historical loss ratio and its determination of risk pools, which are used to calculate expected credit losses, may be adjusted for changes in customer credit concentrations within its portfolio of financial assets, customers’ ability to pay, and other considerations, such as economic and market changes, changes to the regulatory or technological environments affecting customers and the consistency between current and forecasted economic conditions and historical economic conditions used to derive historical loss ratios. At the end of each quarter, management reassesses these and other relevant factors, including any potential effects from the currently challenged energy market and the ongoing COVID-19 pandemic. |
Cash and Cash Equivalents | 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 cash and cash equivalents held by a joint venture other than participating in distributions, to the extent made, and in the event of dissolution. Cash and cash equivalents held by Quanta’s wholly-owned captive insurance company are generally not available for use in support of its other operations. |
Goodwill and Other Intangible Assets | Goodwill, net of accumulated impairment losses, represents the excess of cost over the fair market value of net tangible and identifiable intangible assets of acquired businesses and is stated at cost. Quanta has determined that its individual operating units represent its reporting units for the purpose of assessing goodwill impairment. Goodwill is not amortized but is tested for impairment annually in the fourth quarter of the fiscal year, or more frequently if events or circumstances arise which indicate that goodwill may be impaired. 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; an expectation of selling or disposing of a portion of a reporting unit; a significant change in market, management, business strategy or 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. Quanta did not identify any triggering events in the first three quarters of 2021 and did not recognize any goodwill impairments for the three and nine months ended September 30, 2021. Quanta’s intangible assets include customer relationships; backlog; trade names; non-compete agreements; patented rights, developed technology, and process certifications; and curriculum, all of which are subject to amortization, as well as an engineering license, which is not subject to amortization. As a result of the broader challenges in the energy market, the effect of which continues to be exacerbated by the COVID-19 pandemic, Quanta assessed the expected negative impact related to its intangible assets, particularly intangible assets associated with reporting units within the Underground Utility and Infrastructure Solutions Division. Quanta concluded that such impact is not likely to result in intangible asset impairments, and therefore no intangible asset impairments were recognized during the three and nine months ended September 30, 2021. In connection with its annual goodwill assessment in 2020, Quanta also considered the sensitivity of its fair value estimates to changes in certain valuation assumptions, including with respect to reporting units within Quanta’s Underground Utility and Infrastructure Solutions Division that have recently been negatively impacted by energy market challenges. The potential future impact of these challenges is uncertain and depends on numerous factors and could continue or increase in future periods. In particular, two Canadian pipeline-related businesses and a United States material handling services business were identified in the annual goodwill assessment to have an increased risk of goodwill impairment in the near and medium term due to the currently challenged energy market. After taking into account a 10% decrease in fair value, these reporting units would have had fair values below their carrying amounts as of December 31, 2020. The aggregate goodwill and intangible asset balances for these three businesses totaled $100.1 million and $16.0 million as of September 30, 2021. In addition, a specialized industrial services business located in the United States experienced lower demand for certain services during the year ended December 31, 2020, which has continued in 2021, as customers reduced and deferred regularly scheduled maintenance due to lack of demand for refined products, particularly certain transportation-related fuels, as a result of the COVID-19 pandemic. After taking into account a 10% decrease in fair value, the reporting unit would have had a fair value in excess of its carrying amount as of December 31, 2020; however, uncertainty as to the timing and extent of recovery of demand for refined products has increased the risk of goodwill impairment for this reporting unit. The goodwill and intangible asset balances for this reporting unit were $313.4 million and $51.9 million as of September 30, 2021. Quanta will continue to monitor the goodwill associated with these reporting units, and should they suffer additional declines in actual or forecasted financial results, the risk of goodwill impairment would increase. |
Investments in Affiliates and Other Entities | 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. Equity method investments are carried at original cost adjusted for Quanta’s proportionate share of the investees’ income, losses and distributions. The carrying values for Quanta’s unconsolidated equity method investments were $73.8 million and $44.9 million at September 30, 2021 and December 31, 2020 and are included in “Other assets, net” in the accompanying condensed consolidated balance sheets. Quanta’s share of net income or losses of these investments is included within operating income in the accompanying condensed consolidated statements of operations when the investee is operationally integral to the operations of Quanta and is reported as “Equity in earnings (losses) of integral unconsolidated affiliates.” Quanta’s share of net income or losses of unconsolidated equity method investments that are not operationally integral to the operations of Quanta are included in “Other income (expense), net” below operating income in the accompanying condensed consolidated statements of operations. As of September 30, 2021, Quanta had receivables of $13.3 million and payables of $3.2 million from its integral unconsolidated affiliates. During the nine months ended September 30, 2020, Quanta recognized impairment losses of $8.7 million related to a non-integral equity method investment, which were primarily due to the decline in commodity prices and production volumes during 2020. These impairment losses are included in “Other income (expense), net” in the accompanying condensed consolidated statements of operations for the nine months ended September 30, 2020. In October 2021, Quanta acquired a 44% interest in an entity that provides right-of-way solutions, including site preparation and clearing, materials delivery and installation and management of permitting requirements and traffic control for approximately $18 million, subject to certain adjustments. This investment will be accounted for as an integral affiliate using the equity method of accounting. Investments in entities of 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. Additionally, certain investments provide for significant influence over the investee, but also include preferential liquidation rights, which precludes accounting for the investments under the equity method. These cost method 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 similar investment in the same company. Earnings on investments accounted for using the cost method of accounting are recognized as dividends are declared. These earnings and any impairments of cost method investments are reported in “Other income (expense), net” in the accompanying condensed consolidated statements of operations. The carrying values for investments accounted for using the cost method of accounting were $130.2 million and $39.5 million at September 30, 2021 and December 31, 2020, and these amounts are included in “Other assets, net” in the accompanying condensed consolidated balance sheets. During the three months ended March 31, 2021, Quanta acquired a minority interest in a broadband technology provider for $90.0 million. This investment includes preferential liquidation rights and is accounted for using the cost method of accounting. There have been no changes in the carrying value of the investment through September 30, 2021. During the three months ended March 31, 2021, Quanta also purchased, through its wholly-owned captive insurance company, certain real property, including associated buildings and facilities, that is expected to be developed for its future corporate headquarters. A portion of this property is currently leased to third-party lessees and is expected to continue to be leased to third-party lessees in the future. As a result, an investment in real estate of $23.5 million was recognized at cost for the third-party leased portion of the property during the three months ended March 31, 2021, and the carrying amount of $23.4 million is included in “Other assets, net” in the accompanying condensed consolidated balance sheet at September 30, 2021. During the three months ended June 30, 2020, Quanta recognized a $9.3 million impairment to an investment in a water and gas infrastructure contractor, which also represents the cumulative amount of impairment on investments accounted for using the cost method of accounting. Quanta did not exercise its option to acquire the remaining interest in this business at an agreed price based on a multiple of the company’s earnings during a designated performance period. |
Income Taxes | 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. |
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. Goodwill and Other Intangible Assets 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 in Note 2 of the Notes to Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data in Part II of the 2020 Annual Report provide information regarding valuation methods, including the income approach, market approach and cost approach, and assumptions used to determine the fair value of these assets based on the appropriateness of each method in relation to the type of asset being valued. Quanta believes that the valuation methods it employs 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 the 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 Equity investments with readily determinable fair values are measured at fair value, with changes in fair value recognized in net income. In cases where those readily determinable values are quoted market prices, the level of input used for these fair value measurements is the highest level (Level 1). Equity investments without readily determinable fair values are measured on a nonrecurring basis. These types of fair market value assessments are similar to other nonrecurring fair value measures used by Quanta, which include the use of significant judgments 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). Quanta has investments accounted for using the equity and cost methods of accounting. Quanta utilizes the fair value premise as the basis for its impairment valuation and recognizes impairment if there are sufficient indicators that the fair value of the investment is less than its carrying value. Financial Instruments The carrying amounts of cash equivalents, accounts receivable, contract assets, accounts payable, accrued expenses and contract liabilities approximate fair value due to the short-term nature of these instruments. All of Quanta’s cash equivalents were categorized as Level 1 assets at September 30, 2021 and December 31, 2020, as all values were based on unadjusted quoted prices for identical assets in an active market that Quanta has the ability to access. Long-term Debt The carrying amount of variable rate debt, which includes borrowings under Quanta’s senior credit facility, approximates fair value. Quanta’s fixed rate debt primarily includes its senior notes. The fair value of Quanta’s senior notes, which are described further in Note 6, was $2.52 billion at September 30, 2021, compared to a carrying value of $2.47 billion net of unamortized bond discount, underwriting discounts and deferred financing costs of $28.3 million. The fair value of the senior notes is based on the quoted market prices for the same issue, and the senior notes are categorized as Level 1 liabilities. See Note 6 for additional information regarding Quanta’s senior credit facility and senior notes. |
Adoption of New Accounting Pronouncements and Accounting Standards Not Yet Adopted | Adoption of New Accounting Pronouncements In December 2019, the FASB issued an update that, among other things, amends the guidance related to accounting for tax law changes when an entity has a year-to-date loss in an interim period and provides guidance on how to evaluate whether a step-up in tax basis of goodwill relates to a business combination or a separate transaction. This update is effective for interim and annual periods beginning after December 15, 2020, with certain amendments applied prospectively and other amendments applied on a modified retrospective basis. Quanta adopted this update effective January 1, 2021, and it did not have a material impact on Quanta’s condensed consolidated financial statements at the date of adoption. |
Acquisitions | These allocations require significant use of estimates and are based on information that was available to management at the time these condensed 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. |
Segment Information | Quanta currently presents its operations under two reportable segments: (1) Electric Power Infrastructure Solutions and (2) Underground Utility and Infrastructure Solutions. 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 multiple 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: the Electric Power Infrastructure Solutions Division and the Underground Utility and Infrastructure Solutions Division. These internal divisions are closely aligned with the reportable segments, and operating units are assigned to divisions based on the predominant type of work performed. 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. Classification of operating unit revenues by type of work for segment reporting purposes can 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 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Revenue Disaggregated by Geographic Location and Contract Type | The following tables present Quanta’s revenue disaggregated by geographic location, as determined by the job location, and contract type (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 By primary geographic location: United States $ 2,892,446 86.2 % $ 2,629,606 87.1 % $ 7,669,360 84.7 % $ 7,105,568 85.7 % Canada 382,072 11.4 % 320,576 10.6 % 1,123,077 12.4 % 917,621 11.1 % Australia 52,804 1.6 % 49,537 1.6 % 170,719 1.9 % 156,664 1.9 % Others 25,956 0.8 % 20,442 0.7 % 93,519 1.0 % 110,634 1.3 % Total revenues $ 3,353,278 100.0 % $ 3,020,161 100.0 % $ 9,056,675 100.0 % $ 8,290,487 100.0 % Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 By contract type: Unit-price contracts $ 1,399,358 41.8 % $ 1,141,102 37.7 % $ 3,593,644 39.7 % $ 3,034,169 36.6 % Cost-plus contracts 825,622 24.6 % 702,392 23.3 % 2,247,879 24.8 % 1,958,404 23.6 % Fixed price contracts 1,128,298 33.6 % 1,176,667 39.0 % 3,215,152 35.5 % 3,297,914 39.8 % Total revenues $ 3,353,278 100.0 % $ 3,020,161 100.0 % $ 9,056,675 100.0 % $ 8,290,487 100.0 % |
Contract Assets and Liabilities | Contract assets and liabilities, recorded as current assets and liabilities, respectively, consisted of the following (in thousands): September 30, 2021 December 31, 2020 Contract assets $ 760,279 $ 453,832 Contract liabilities $ 501,142 $ 528,864 |
Composition of the Allowance for Credit Losses | Activity in Quanta’s allowance for credit losses consisted of the following (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Balance at beginning of period $ 39,713 $ 14,948 $ 16,546 $ 9,398 Cumulative effect of adoption of new credit loss standard — — — 5,067 Provision for credit losses 249 1,566 24,169 2,910 Direct write-offs charged against the allowance (253) (110) (1,006) (971) Balance at end of period $ 39,709 $ 16,404 $ 39,709 $ 16,404 |
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): September 30, 2021 December 31, 2020 Cash and cash equivalents held in domestic bank accounts $ 1,664,990 $ 156,122 Cash and cash equivalents held in foreign bank accounts 31,220 28,498 Total cash and cash equivalents $ 1,696,210 $ 184,620 September 30, 2021 December 31, 2020 Cash and cash equivalents held by domestic joint ventures $ 13,377 $ 7,714 Cash and cash equivalents held by foreign joint ventures 4,568 3,973 Total cash and cash equivalents held by joint ventures 17,945 11,687 Cash and cash equivalents held by captive insurance company 132,916 85,014 Cash and cash equivalents not held by joint ventures or captive insurance company 1,545,349 87,919 Total cash and cash equivalents $ 1,696,210 $ 184,620 |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following (in thousands): September 30, 2021 December 31, 2020 Accounts payable, trade $ 956,873 $ 798,023 Accrued compensation and related expenses 497,451 378,002 Other accrued expenses 306,465 333,769 Accounts payable and accrued expenses $ 1,760,789 $ 1,509,794 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Aggregate Consideration Paid or Payable and Allocation Net Assets | The following table summarizes the fair value of total consideration transferred or estimated to be transferred and the fair value of assets acquired and liabilities assumed as of September 30, 2021 for acquisitions completed in the year-to-date periods shown below (in thousands). September 30, 2021 December 31, 2020 Consideration: Cash paid or payable $ 59,226 $ 359,624 Value of Quanta common stock issued 2,479 57,119 Contingent consideration — 2,250 Fair value of total consideration transferred or estimated to be transferred $ 61,705 $ 418,993 Accounts receivable $ 10,678 $ 74,492 Contract assets 2,048 8,919 Other current assets 7,189 53,302 Property and equipment 5,651 143,276 Other assets 216 14 Identifiable intangible assets 18,506 96,827 Contract liabilities (16) (3,750) Other current liabilities (10,371) (35,112) Deferred tax liabilities, net (2,093) (3,185) Total identifiable net assets 31,808 334,783 Goodwill 29,897 84,210 Fair value of net assets acquired $ 61,705 $ 418,993 |
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 acquisitions completed in the nine months ended September 30, 2021 as of the acquisition date and the related weighted average amortization periods by asset type (in thousands, except for weighted average amortization periods, which are in years). Estimated Fair Value Weighted Average Amortization Period in Years Customer relationships $ 3,063 5.6 Backlog 3,811 1.3 Trade names 1,110 14.4 Non-compete agreements 1,494 5.0 Patented rights, developed technology, and process certifications 9,028 3.5 Total intangible assets subject to amortization $ 18,506 4.2 |
Discount Rates and Customer Attrition Rates | The following table includes the discount rates and customer attrition rates used to determine the fair value of customer relationship intangible assets for businesses acquired during the nine months ended September 30, 2021 and the year ended December 31, 2020 as of the respective acquisition dates: 2021 2020 Range Weighted Average Range Weighted Average Discount rates 22% to 25% 22% 19% to 25% 20% Customer attrition rates 20% to 30% 23% 10% to 43% 13% |
Unaudited Supplemental Pro Forma Results of Operations | The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in the three and nine months ended September 30, 2021 and 2020, 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). Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenues $ 3,357,877 $ 3,069,921 $ 9,090,656 $ 8,519,226 Gross profit $ 535,935 $ 520,866 $ 1,367,256 $ 1,254,826 Selling, general and administrative expenses $ (275,363) $ (256,608) $ (794,249) $ (740,564) Amortization of intangible assets $ (22,836) $ (22,843) $ (68,167) $ (69,742) Net income $ 175,865 $ 166,326 $ 387,713 $ 287,171 Net income attributable to common stock $ 174,832 $ 165,539 $ 383,184 $ 282,718 Earnings per share attributable to common stock: Basic $ 1.25 $ 1.17 $ 2.73 $ 1.98 Diluted $ 1.21 $ 1.14 $ 2.65 $ 1.94 |
Per Share Information (Tables)
Per Share Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share Attributable to Common Stock | The amounts used to compute basic and diluted earnings per share attributable to common stock consisted of the following (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Amounts attributable to common stock: Net income attributable to common stock $ 174,365 $ 162,913 $ 381,159 $ 275,545 Weighted average shares outstanding: Weighted average shares outstanding for basic earnings per share attributable to common stock 140,008 140,542 140,134 141,610 Effect of dilutive unvested non-participating stock-based awards 4,296 3,821 4,314 3,375 Weighted average shares outstanding for diluted earnings per share attributable to common stock 144,304 144,363 144,448 144,985 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt Obligations | Quanta’s long-term debt obligations consisted of the following (in thousands): September 30, 2021 December 31, 2020 0.950% Senior Notes due October 2024 $ 500,000 $ — 2.900% Senior Notes due October 2030 1,000,000 1,000,000 2.350% Senior Notes due January 2032 500,000 — 3.050% Senior Notes due October 2041 500,000 — Borrowings under senior credit facility 415,851 148,508 Other long-term debt 51,366 46,981 Finance leases 2,253 2,228 Unamortized discount and deferred financing costs related to senior notes (28,289) (12,892) Total long-term debt obligations 2,941,181 1,184,825 Less — Current maturities of long-term debt 10,276 10,531 Total long-term debt obligations, net of current maturities $ 2,930,905 $ 1,174,294 |
Current Maturities and Interest Rates 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): September 30, 2021 December 31, 2020 Short-term debt $ 13,472 $ 4,233 Current maturities of long-term debt 10,276 10,531 Current maturities of long-term debt and short-term debt $ 23,748 $ 14,764 |
Schedule of Interest on Senior Notes | Interest on the Senior Notes is payable semi-annually in arrears as set forth below (dollars in thousands). Title of the Notes Interest Amount Payment Dates Commencement Date 0.950% Senior Notes due October 2024 $ 2,375 April 1 and October 1 April 1, 2022 2.900% Senior Notes due October 2030 $ 14,500 April 1 and October 1 April 1, 2021 2.350% Senior Notes due January 2032 $ 5,875 January 15 and July 15 July 15, 2022 3.050% Senior Notes due October 2041 $ 7,625 April 1 and October 1 April 1, 2022 |
Borrowings under Credit Facility and Applicable Interest Rates | Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Maximum amount outstanding $ 517,883 $ 1,462,069 $ 576,993 $ 2,023,326 Average daily amount outstanding $ 416,089 $ 1,255,171 $ 360,609 $ 1,395,207 Weighted-average interest rate 2.13 % 1.57 % 2.05 % 2.13 % |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Components of Lease Costs | The components of lease costs in the accompanying condensed consolidated statements of operations are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Lease cost Classification 2021 2020 2021 2020 Finance lease cost: Amortization of lease assets Depreciation (1) $ 231 $ 53 $ 705 $ 515 Interest on lease liabilities Interest expense 18 16 68 50 Operating lease cost Cost of services and Selling, general and administrative expenses 25,323 29,577 80,046 89,289 Short-term and variable lease cost (2) Cost of services and Selling, general and administrative expenses 176,605 160,365 494,846 478,683 Total lease cost $ 202,177 $ 190,011 $ 575,665 $ 568,537 (1) Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of operations. (2) Short-term lease cost includes both leases and rentals with initial terms of one year or less. Variable lease cost is insignificant and primarily relates to real estate leases and consists of common area maintenance charges, real estate taxes, insurance and other variable costs. |
Future Minimum Lease Payments - Operating Leases | Future minimum lease payments for operating and finance leases were as follows (in thousands): As of September 30, 2021 Operating Leases Finance Leases Total Remainder of 2021 $ 23,964 $ 296 $ 24,260 2022 80,516 872 81,388 2023 58,265 666 58,931 2024 36,341 409 36,750 2025 24,449 126 24,575 Thereafter 36,996 — 36,996 Total future minimum operating and finance lease payments $ 260,531 $ 2,369 $ 262,900 Less imputed interest (20,342) (116) (20,458) Total lease liabilities $ 240,189 $ 2,253 $ 242,442 |
Future Minimum Lease Payments - Finance Leases | Future minimum lease payments for operating and finance leases were as follows (in thousands): As of September 30, 2021 Operating Leases Finance Leases Total Remainder of 2021 $ 23,964 $ 296 $ 24,260 2022 80,516 872 81,388 2023 58,265 666 58,931 2024 36,341 409 36,750 2025 24,449 126 24,575 Thereafter 36,996 — 36,996 Total future minimum operating and finance lease payments $ 260,531 $ 2,369 $ 262,900 Less imputed interest (20,342) (116) (20,458) Total lease liabilities $ 240,189 $ 2,253 $ 242,442 |
Other Information Related to Leases | The weighted average remaining lease terms and discount rates were as follows: As of September 30, 2021 Weighted average remaining lease term (in years): Operating leases 4.16 Finance leases 2.90 Weighted average discount rate: Operating leases 3.9 % Finance leases 3.7 % |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Treasury Stock | Quanta repurchased the following shares of common stock in the open market under the stock repurchase programs (in thousands): Quarter ended: Shares Amount September 30, 2021 185 $ 16,828 June 30, 2021 314 $ 29,450 March 31, 2021 222 $ 17,710 December 31, 2020 720 $ 49,949 September 30, 2020 — $ — June 30, 2020 — $ — March 31, 2020 5,960 $ 200,000 |
Dividends | Quanta declared the following cash dividends and cash dividend equivalents during 2020 and the first nine months of 2021 (in thousands, except per share amounts): Declaration Record Payment Dividend Dividends Date Date Date Per Share Declared August 27, 2021 October 1, 2021 October 15, 2021 $ 0.06 $ 8,638 May 27, 2021 July 1, 2021 July 15, 2021 $ 0.06 $ 8,650 March 25, 2021 April 6, 2021 April 15, 2021 $ 0.06 $ 8,429 December 11, 2020 January 4, 2021 January 15, 2021 $ 0.06 $ 8,933 August 26, 2020 October 1, 2020 October 15, 2020 $ 0.05 $ 7,244 May 28, 2020 July 1, 2020 July 15, 2020 $ 0.05 $ 7,182 March 26, 2020 April 6, 2020 April 15, 2020 $ 0.05 $ 7,184 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of RSUs and PSUs to be Settled in Common Stock Activity | A summary of the activity for RSUs to be settled in common stock for the nine months ended September 30, 2021 and 2020 is set forth below (shares in thousands): 2021 2020 RSUs Weighted Average RSUs Weighted Average Unvested at January 1 3,869 $37.57 3,265 $35.34 Granted 945 $82.75 2,008 $39.65 Vested (1,442) $36.92 (1,228) $35.68 Forfeited (119) $47.23 (114) $36.26 Unvested at period ended September 30 3,253 $50.71 3,931 $37.41 A summary of the activity for PSUs to be settled in common stock for the nine months ended September 30, 2021 and 2020 is set forth below (shares in thousands): 2021 2020 PSUs Weighted Average PSUs Weighted Average Unvested at January 1 1,047 $37.65 848 $33.20 Granted 174 $90.44 436 $34.59 Vested (268) $38.28 (238) $17.48 Forfeited (11) $36.90 — N/A Unvested at September 30 942 $47.27 1,046 $37.35 |
Grant Date Fair Value for Awards of Performance Units Inputs | The Monte Carlo simulation valuation methodology applied the following key inputs: 2021 2020 Valuation date price based on March 25, 2021 and March 26, 2020 closing stock prices of Quanta common stock $83.48 $31.49 Expected volatility 36 % 34 % Risk-free interest rate 0.26 % 0.35 % Term in years 2.77 2.76 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summarized Financial Information | Summarized financial information for Quanta’s reportable segments is presented in the following table (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenues: Electric Power Infrastructure Solutions $ 2,328,468 $ 2,107,621 $ 6,536,363 $ 5,667,566 Underground Utility and Infrastructure Solutions 1,024,810 912,540 2,520,312 2,622,921 Consolidated revenues $ 3,353,278 $ 3,020,161 $ 9,056,675 $ 8,290,487 Operating income (loss) : Electric Power Infrastructure Solutions (1)(2) $ 288,283 $ 268,376 $ 724,217 $ 581,030 Underground Utility and Infrastructure Solutions 68,167 76,220 100,917 128,747 Corporate and Non-Allocated Costs (108,373) (102,381) (301,677) (273,909) Consolidated operating income $ 248,077 $ 242,215 $ 523,457 $ 435,868 Depreciation: Electric Power Infrastructure Solutions $ 37,196 $ 30,637 $ 110,925 $ 88,337 Underground Utility and Infrastructure Solutions 20,958 21,313 63,183 64,280 Corporate and Non-Allocated Costs 3,462 4,294 12,372 12,563 Consolidated depreciation $ 61,616 $ 56,244 $ 186,480 $ 165,180 ( 1 ) As of December 31, 2020, Quanta had substantially completed the exit of its operations in Latin America. For the three and nine months ended September 30, 2020, operating income for the Electric Power Infrastructure Solutions segment included $15.4 million and $46.9 million of operating losses related to Latin American operations. (2) Operating income for the Electric Power Infrastructure Solutions segment includes equity in earnings of integral unconsolidated affiliates that are operationally integral to the operations of Quanta, which primarily consists of equity in earnings related to Quanta’s equity interest in LUMA. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Net Effects of Changes in Operating Assets and Liabilities, Net, on Cash Flows from Operating Activities | The net effects of changes in operating assets and liabilities, net of non-cash transactions, on cash flows from operating activities are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Accounts and notes receivable $ (411,890) $ (322,579) $ (299,857) $ 37,541 Contract assets (96,423) 21,950 (308,849) 121,999 Inventories 5 8,655 (6,139) 6,787 Prepaid expenses and other current assets 37,406 19,655 (4,943) 70,133 Accounts payable and accrued expenses and other non-current liabilities 230,631 235,633 289,833 147,888 Contract liabilities (1,397) (79,964) (27,027) (73,567) Other, net (6,027) (7,813) (15,205) (20,066) Net change in operating assets and liabilities, net of non-cash transactions $ (247,695) $ (124,463) $ (372,187) $ 290,715 |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash and Additional Supplemental Cash Flow Information | Reconciliations of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of such amounts shown in the statements of cash flows are as follows (in thousands): September 30, 2021 2020 Cash and cash equivalents $ 1,696,210 $ 216,935 Restricted cash included in “Prepaid expenses and other current assets” 2,108 1,252 Restricted cash included in “Other assets, net” 778 915 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 1,699,096 $ 219,102 June 30, 2021 2020 Cash and cash equivalents $ 212,473 $ 530,670 Restricted cash included in “Prepaid expenses and other current assets” 1,460 1,266 Restricted cash included in “Other assets, net” 782 917 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 214,715 $ 532,853 December 31, 2020 2019 Cash and cash equivalents $ 184,620 $ 164,798 Restricted cash included in “Prepaid expenses and other current assets” 1,275 4,026 Restricted cash included in “Other assets, net” 913 921 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 186,808 $ 169,745 Additional supplemental cash flow information is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cash (paid) received during the period for — Interest paid $ (2,260) $ (8,443) $ (26,883) $ (30,704) Income taxes paid $ (35,740) $ (86,077) $ (103,225) $ (149,690) Income tax refunds $ 2,419 $ 1,087 $ 9,211 $ 5,545 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases and rental purchase options is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (25,331) $ (29,333) $ (79,730) $ (88,570) Operating cash flows from finance leases $ (18) $ (16) $ (68) $ (50) Financing cash flows from finance leases $ (168) $ (102) $ (688) $ (525) Lease assets obtained in exchange for lease liabilities: Operating leases $ 17,081 $ 16,619 $ 41,686 $ 56,970 Finance leases $ 112 $ 275 $ 398 $ 1,158 Rental purchase option assets obtained in exchange for rental purchase option liabilities $ 1,129 $ 3,306 $ 7,009 $ 13,229 |
Business and Organization (Deta
Business and Organization (Detail) | 9 Months Ended |
Sep. 30, 2021Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Performance Obligation (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Remaining performance obligation | $ 4,370 | $ 3,990 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percent of remaining performance obligation expected to be recognized | 71.20% | |
Recognition period for remaining performance obligation | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percent of remaining performance obligation expected to be recognized | 78.70% | |
Recognition period for remaining performance obligation | 12 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue Recognition (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021USD ($)unitnumberOfProjects | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)unitnumberOfProjects | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Revenue Recognition [Line Items] | ||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | $ (41,900) | $ (48,700) | $ (127,400) | |||
Change in contract estimates, (favorable) unfavorable impact on operating results, percent | (7.80%) | (9.60%) | (9.40%) | (5.00%) | ||
Revenues recognized related to change orders and claims | $ 254,100 | $ 254,100 | $ 141,200 | |||
Number of delayed transmission projects due to changes orders and claims | numberOfProjects | 2 | 2 | ||||
Number of projects that experienced a significant impact due accelerated timeline | unit | 1 | 1 | ||||
Percent of total revenues recognized associated with revenue recognition method | 42.50% | 47.90% | 43.40% | 48.40% | ||
Revenue, related to performance obligation satisfied in previous periods | $ 151,700 | |||||
Revenue recognized related to amounts in contract liabilities outstanding at the beginning of period | 381,900 | |||||
Provision for credit losses | $ 249 | $ 1,566 | 24,169 | $ 2,910 | ||
Current retainage balances | 295,900 | 295,900 | 306,300 | |||
Non-current retainage balances | 88,200 | 88,200 | 88,200 | |||
Unbilled receivables | 827,300 | 827,300 | 472,300 | |||
Latin America | ||||||
Revenue Recognition [Line Items] | ||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | 12,100 | 28,600 | ||||
Limetree Bay Refining, LLC | ||||||
Revenue Recognition [Line Items] | ||||||
Accounts receivable, before allowance for credit loss | 31,300 | 31,300 | ||||
Limetree Bay Terminals, LLC | ||||||
Revenue Recognition [Line Items] | ||||||
Accounts receivable, before allowance for credit loss | 700 | 700 | ||||
Limetree Bay Refining, LLC And Limetree Terminal, LLC | ||||||
Revenue Recognition [Line Items] | ||||||
Provision for credit losses | $ 23,600 | |||||
Accounts receivable | 8,400 | 8,400 | ||||
Accounts Payable and Accrued Expenses | ||||||
Revenue Recognition [Line Items] | ||||||
Unearned revenues, current portion | $ 39,500 | $ 39,500 | $ 53,600 | |||
Larger Pipeline Transmission Projects | ||||||
Revenue Recognition [Line Items] | ||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | $ (32,900) | $ (15,100) |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 3,353,278 | $ 3,020,161 | $ 9,056,675 | $ 8,290,487 |
Percent of total revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Unit-price contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,399,358 | $ 1,141,102 | $ 3,593,644 | $ 3,034,169 |
Percent of total revenues | 41.80% | 37.70% | 39.70% | 36.60% |
Cost-plus contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 825,622 | $ 702,392 | $ 2,247,879 | $ 1,958,404 |
Percent of total revenues | 24.60% | 23.30% | 24.80% | 23.60% |
Fixed price contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,128,298 | $ 1,176,667 | $ 3,215,152 | $ 3,297,914 |
Percent of total revenues | 33.60% | 39.00% | 35.50% | 39.80% |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,892,446 | $ 2,629,606 | $ 7,669,360 | $ 7,105,568 |
Percent of total revenues | 86.20% | 87.10% | 84.70% | 85.70% |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 382,072 | $ 320,576 | $ 1,123,077 | $ 917,621 |
Percent of total revenues | 11.40% | 10.60% | 12.40% | 11.10% |
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 52,804 | $ 49,537 | $ 170,719 | $ 156,664 |
Percent of total revenues | 1.60% | 1.60% | 1.90% | 1.90% |
Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 25,956 | $ 20,442 | $ 93,519 | $ 110,634 |
Percent of total revenues | 0.80% | 0.70% | 1.00% | 1.30% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Contract assets | $ 760,279 | $ 453,832 |
Contract liabilities | $ 501,142 | $ 528,864 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Composition of the Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 39,713 | $ 14,948 | $ 16,546 | $ 9,398 |
Provision for credit losses | 249 | 1,566 | 24,169 | 2,910 |
Direct write-offs charged against the allowance | (253) | (110) | (1,006) | (971) |
Balance at end of period | $ 39,709 | $ 16,404 | $ 39,709 | 16,404 |
Adjustment due to Adoption of New ASU | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 5,067 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | $ 1,696,210 | $ 212,473 | $ 184,620 | $ 216,935 | $ 530,670 | $ 164,798 |
Cash equivalents | 1,630,000 | 98,000 | ||||
Domestic Bank Accounts | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 1,664,990 | 156,122 | ||||
Foreign Bank Accounts | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 31,220 | 28,498 | ||||
Domestic Joint Ventures | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 13,377 | 7,714 | ||||
Foreign Joint Ventures | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 4,568 | 3,973 | ||||
Investments in Joint Ventures | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 17,945 | 11,687 | ||||
Captive Insurance Company | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 132,916 | 85,014 | ||||
Cash Not Held by Joint Ventures | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | $ 1,545,349 | $ 87,919 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($)unit | Dec. 31, 2020USD ($)unit | |
Goodwill [Line Items] | |||
Goodwill impairment loss | $ 0 | $ 0 | |
Impairment of other intangible assets | 0 | 0 | |
Decrease in fair value of reporting units considered for impairment | 10.00% | ||
Goodwill | 2,145,963,000 | 2,145,963,000 | $ 2,121,014,000 |
Other intangible assets | 388,999,000 | $ 388,999,000 | $ 435,655,000 |
Underground Utility and Infrastructure Solutions | Two Canadian Pipeline Operating Businesses | |||
Goodwill [Line Items] | |||
Number of reporting units at risk after cushion test | unit | 2 | ||
Underground Utility and Infrastructure Solutions | Two Canadian Pipeline Operating Businesses And United States Material Handling Services | |||
Goodwill [Line Items] | |||
Number of reporting units at risk after cushion test | unit | 3 | ||
Goodwill | 100,100,000 | $ 100,100,000 | |
Other intangible assets | 16,000,000 | 16,000,000 | |
Underground Utility and Infrastructure Solutions | Specialized Industrial Services Business | |||
Goodwill [Line Items] | |||
Goodwill | 313,400,000 | 313,400,000 | |
Other intangible assets | $ 51,900,000 | $ 51,900,000 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Investments in Affiliates and Other Entities (Details) mile in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Oct. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($)mile | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Equity method investments | $ 73,800 | $ 73,800 | $ 44,900 | |||||
Equity in earnings (losses) of unconsolidated affiliates | 10,758 | $ 5,260 | 24,734 | $ (2,207) | ||||
Investment in real estate | 23,400 | 23,400 | $ 23,500 | |||||
Impairment of cost method investment | 0 | $ 0 | 0 | 9,311 | ||||
Length of electric transmission and distribution system | mile | 18 | |||||||
Quanta Services, Inc. | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cost method investments | 130,200 | 130,200 | 39,500 | |||||
LUMA Energy, LLC | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Term of operation and maintenance agreement | 15 years | |||||||
Integral Affiliates | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Due from related parties | 13,300 | 13,300 | ||||||
Due to related parties | 3,200 | 3,200 | ||||||
Certain Non-Integral Equity Investments | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Equity in earnings (losses) of unconsolidated affiliates | $ (8,700) | |||||||
Broadband Technology Provider | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cost method investments | $ 90,000 | |||||||
Cost Method Investment | Quanta Services, Inc. | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Impairment of cost method investment | $ 9,300 | |||||||
LUMA Energy, LLC | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Equity method investments | $ 34,500 | $ 34,500 | $ 10,900 | |||||
Equity interest | 50.00% | |||||||
Integral Unconsolidated Affiliates | Subsequent Event | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Equity interest | 44.00% | |||||||
Payments to interest in entity | $ 18,000 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Accounts payable, trade | $ 956,873 | $ 798,023 |
Accrued compensation and related expenses | 497,451 | 378,002 |
Other accrued expenses | 306,465 | 333,769 |
Accounts payable and accrued expenses | $ 1,760,789 | $ 1,509,794 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Income Taxes (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Accounting Policies [Abstract] | |
Total amount of unrecognized tax benefits relating to uncertain tax positions | $ 40.6 |
Increase (decrease) in the total amount of unrecognized tax benefits relating to uncertain tax positions | 7.4 |
Increase in reserves for uncertain tax positions expected to be taken in current year | 5 |
Increase in reserves from uncertain tax positions from changes in prior year positions | 2.4 |
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | $ 13.3 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - Senior Notes - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 2,520,000 | |
Long-term debt | 2,470,000 | |
Unamortized discount and deferred financing costs related to senior notes | $ 28,289 | $ 12,892 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Oct. 13, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||||||
Net tangible assets acquired | $ 136,400 | $ 136,400 | $ 136,400 | |||||
Identified intangible assets | 37,600 | |||||||
Goodwill acquired | 35,300 | |||||||
Subsequent Event | ||||||||
Business Acquisition [Line Items] | ||||||||
Post-acquisition period, financial performance objectives | 3 years | |||||||
Acquisitions 2021 | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value of total consideration transferred or estimated to be transferred | $ 61,705 | |||||||
Number of shares granted for acquired companies (in shares) | 32,822 | |||||||
Value of quanta common stock issued | $ 2,479 | |||||||
Contingent consideration | 0 | 0 | 0 | |||||
Identified intangible assets | 18,506 | |||||||
Goodwill acquired | 29,897 | |||||||
Goodwill expected to be deductible for income tax | 13,300 | 13,300 | $ 13,300 | |||||
Revenues included in consolidated results of operations | 13,400 | 14,600 | ||||||
Income (loss) before taxes | (300) | (200) | ||||||
Acquisition costs | $ 2,000 | 2,400 | ||||||
Cash consideration | $ 59,226 | |||||||
Acquisitions 2020 | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value of total consideration transferred or estimated to be transferred | $ 418,993 | |||||||
Number of shares granted for acquired companies (in shares) | 1,334,469 | |||||||
Value of quanta common stock issued | $ 57,119 | |||||||
Aggregate maximum payout amount | $ 6,900 | |||||||
Aggregate maximum payout amount, target term | 5 years | |||||||
Contingent consideration | $ 2,250 | |||||||
Goodwill acquired | 84,210 | |||||||
Goodwill expected to be deductible for income tax | 72,600 | |||||||
Revenues included in consolidated results of operations | $ 55,200 | $ 63,000 | ||||||
Income (loss) before taxes | 1,000 | 1,000 | ||||||
Acquisition costs | $ 10,600 | $ 11,400 | ||||||
Cash consideration | $ 359,624 | |||||||
Blattner Holding Company | Subsequent Event | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration | $ 2,290,000 | |||||||
Number of shares granted for acquired companies (in shares) | 3,300,000 | |||||||
Value of quanta common stock issued | $ 345,400 | |||||||
Aggregate maximum payout amount | $ 300,000 | |||||||
Business Providing Electric Power Construction And Related Services | Subsequent Event | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of shares granted for acquired companies (in shares) | 42,748 | |||||||
Value of quanta common stock issued | $ 4,000 | |||||||
Cash consideration | $ 50,000 |
Acquisitions - Aggregate Consid
Acquisitions - Aggregate Consideration Paid or Payable and Allocation of Net Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 35,300 | ||
Acquisitions 2021 | |||
Business Acquisition [Line Items] | |||
Cash paid or payable | $ 59,226 | ||
Value of Quanta common stock issued | 2,479 | ||
Contingent consideration | 0 | 0 | |
Fair value of total consideration transferred or estimated to be transferred | 61,705 | ||
Accounts receivable | 10,678 | 10,678 | |
Contract assets | 2,048 | 2,048 | |
Other current assets | 7,189 | 7,189 | |
Property and equipment | 5,651 | 5,651 | |
Other assets | 216 | 216 | |
Identifiable intangible assets | 18,506 | 18,506 | |
Contract liabilities | (16) | (16) | |
Other current liabilities | (10,371) | (10,371) | |
Deferred tax liabilities, net | (2,093) | (2,093) | |
Total identifiable net assets | 31,808 | 31,808 | |
Goodwill | 29,897 | ||
Fair value of net assets acquired | $ 61,705 | $ 61,705 | |
Acquisitions 2020 | |||
Business Acquisition [Line Items] | |||
Cash paid or payable | $ 359,624 | ||
Value of Quanta common stock issued | 57,119 | ||
Contingent consideration | 2,250 | ||
Fair value of total consideration transferred or estimated to be transferred | 418,993 | ||
Accounts receivable | 74,492 | ||
Contract assets | 8,919 | ||
Other current assets | 53,302 | ||
Property and equipment | 143,276 | ||
Other assets | 14 | ||
Identifiable intangible assets | 96,827 | ||
Contract liabilities | (3,750) | ||
Other current liabilities | (35,112) | ||
Deferred tax liabilities, net | (3,185) | ||
Total identifiable net assets | 334,783 | ||
Goodwill | 84,210 | ||
Fair value of net assets acquired | $ 418,993 |
Acquisitions - Estimated Fair V
Acquisitions - Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 37,600 | |
Acquisitions 2021 | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 18,506 | |
Weighted Average Amortization Period in Years | 4 years 2 months 12 days | |
Customer relationships | Acquisitions 2021 | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 3,063 | |
Weighted Average Amortization Period in Years | 5 years 7 months 6 days | |
Backlog | Acquisitions 2021 | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 3,811 | |
Weighted Average Amortization Period in Years | 1 year 3 months 18 days | |
Trade names | Acquisitions 2021 | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 1,110 | |
Weighted Average Amortization Period in Years | 14 years 4 months 24 days | |
Non-compete agreements | Acquisitions 2021 | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 1,494 | |
Weighted Average Amortization Period in Years | 5 years | |
Patented rights, developed technology, and process certifications | Acquisitions 2021 | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 9,028 | |
Weighted Average Amortization Period in Years | 3 years 6 months |
Acquisitions - Discount Rates a
Acquisitions - Discount Rates and Customer Attrition Rates Used to Determine Fair Value (Details) - Customer relationships | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Minimum | ||
Business Acquisition [Line Items] | ||
Discount rates | 22.00% | 19.00% |
Customer attrition rates | 20.00% | 10.00% |
Maximum | ||
Business Acquisition [Line Items] | ||
Discount rates | 25.00% | 25.00% |
Customer attrition rates | 30.00% | 43.00% |
Weighted Average | ||
Business Acquisition [Line Items] | ||
Discount rates | 22.00% | 20.00% |
Customer attrition rates | 23.00% | 13.00% |
Acquisitions - Unaudited Supple
Acquisitions - Unaudited Supplemental Pro Forma Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||||
Revenues | $ 3,357,877 | $ 3,069,921 | $ 9,090,656 | $ 8,519,226 |
Gross profit | 535,935 | 520,866 | 1,367,256 | 1,254,826 |
Selling, general and administrative expenses | (275,363) | (256,608) | (794,249) | (740,564) |
Amortization of intangible assets | (22,836) | (22,843) | (68,167) | (69,742) |
Net income | 175,865 | 166,326 | 387,713 | 287,171 |
Net income attributable to common stock | $ 174,832 | $ 165,539 | $ 383,184 | $ 282,718 |
Earnings per share attributable to common stock: | ||||
Basic (in dollars per share) | $ 1.25 | $ 1.17 | $ 2.73 | $ 1.98 |
Diluted (in dollars per share) | $ 1.21 | $ 1.14 | $ 2.65 | $ 1.94 |
Per Share Information - Basic a
Per Share Information - Basic and Diluted Earnings Per Share Attributable to Common Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Amounts attributable to common stock: | ||||
Net income attributable to common stock, basic | $ 174,365 | $ 162,913 | $ 381,159 | $ 275,545 |
Net income attributable to common stock, diluted | $ 174,365 | $ 162,913 | $ 381,159 | $ 275,545 |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding for basic earnings per share attributable to common stock (in shares) | 140,008,000 | 140,542,000 | 140,134,000 | 141,610,000 |
Effect of dilutive unvested non-participating stock-based awards (in shares) | 4,296,000 | 3,821,000 | 4,314,000 | 3,375,000 |
Weighted average shares outstanding for diluted earnings per share attributable to common stock (in shares) | 144,304,000 | 144,363,000 | 144,448,000 | 144,985,000 |
Per Share Information - Narrati
Per Share Information - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding attributable to participating securities (in shares) | 500,000 | 1,400,000 | 700,000 | 1,700,000 |
Debt Obligations - Long-term De
Debt Obligations - Long-term Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 23, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Borrowings under senior credit facility | $ 415,851 | $ 148,508 | |
Other long-term debt | 51,366 | 46,981 | |
Finance leases | 2,253 | 2,228 | |
Total long-term debt obligations | 2,941,181 | 1,184,825 | |
Less — Current maturities of long-term debt | 10,276 | 10,531 | |
Long-term debt, net of current maturities | 2,930,905 | 1,174,294 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 2,470,000 | ||
Unamortized discount and deferred financing costs related to senior notes | (28,289) | (12,892) | |
Senior Notes Due October 2024 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.95% | ||
Long-term debt | $ 500,000 | 0 | |
Senior Notes Due October 2030 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.90% | ||
Long-term debt | $ 1,000,000 | 1,000,000 | |
Senior Notes Due January 2032 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.35% | ||
Long-term debt | 500,000 | 0 | |
Senior Notes Due October 2041 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.05% | ||
Long-term debt | $ 500,000 | $ 0 |
Debt Obligations - Current Matu
Debt Obligations - Current Maturities of Long-Term Debt and Short-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Short-term debt | $ 13,472 | $ 4,233 |
Current maturities of long-term debt | 10,276 | 10,531 |
Current maturities of long-term debt and short-term debt | $ 23,748 | $ 14,764 |
Debt Obligations - Senior Notes
Debt Obligations - Senior Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 23, 2021 | Sep. 22, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | |||||||
Proceeds from notes offering | $ 1,487,450 | $ 990,130 | $ 1,487,450 | $ 990,130 | |||
Senior Notes | Senior Notes Due 2024, 2032 And 2041 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument | $ 1,500,000 | ||||||
Proceeds from notes offering | 1,480,000 | ||||||
Redemption price, percentage | 101.00% | ||||||
Senior Notes | Senior Notes Due October 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument | $ 500,000 | ||||||
Interest rate | 0.95% | ||||||
Semi-annual interest payable | $ 2,375 | ||||||
Senior Notes | Senior Notes Due October 2024 | Prior to commencement date | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | Senior Notes Due October 2024 | Following the commencement date | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | Senior Notes Due January 2032 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument | $ 500,000 | ||||||
Interest rate | 2.35% | ||||||
Semi-annual interest payable | $ 5,875 | ||||||
Senior Notes | Senior Notes Due January 2032 | Prior to commencement date | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | Senior Notes Due January 2032 | Following the commencement date | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | Senior Notes Due October 2041 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument | $ 500,000 | ||||||
Interest rate | 3.05% | ||||||
Semi-annual interest payable | $ 7,625 | ||||||
Senior Notes | Senior Notes Due October 2041 | Prior to commencement date | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | Senior Notes Due October 2041 | Following the commencement date | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | Senior Notes Due October 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument | $ 1,000,000 | ||||||
Interest rate | 2.90% | 2.90% | 2.90% | ||||
Proceeds from notes offering | $ 986,700 | ||||||
Semi-annual interest payable | $ 14,500 | ||||||
Senior Notes | Senior Notes Due October 2030 | Prior to commencement date | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% | ||||||
Senior Notes | Senior Notes Due October 2030 | Following the commencement date | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price, percentage | 100.00% |
Debt Obligations - Senior Credi
Debt Obligations - Senior Credit Facility (Details) $ in Thousands | Oct. 13, 2021USD ($) | Oct. 08, 2021USD ($) | Sep. 30, 2021USD ($)unit | Oct. 07, 2021USD ($) | Dec. 31, 2020USD ($) |
Line of Credit Facility [Line Items] | |||||
Amount borrowed under the credit facility | $ 415,851 | $ 148,508 | |||
Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility available for revolving loans or issuing new letters of credit | 1,760,000 | ||||
Senior Credit Facility | Canadian Dollars | |||||
Line of Credit Facility [Line Items] | |||||
Amount borrowed under the credit facility | 239,700 | ||||
Senior Credit Facility | U.S. Dollar | |||||
Line of Credit Facility [Line Items] | |||||
Amount borrowed under the credit facility | 142,200 | ||||
Senior Credit Facility | Australian Dollars | |||||
Line of Credit Facility [Line Items] | |||||
Amount borrowed under the credit facility | 34,000 | ||||
Senior Credit Facility | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Amount borrowed under the credit facility | $ 415,900 | ||||
Maximum consolidated leverage ratio | 3.5 | ||||
Maximum consolidated leverage ratio, acquisition threshold | $ 200,000 | ||||
Maximum consolidated leverage ratio in quarters where acquisition threshold is met | 4 | ||||
Subsequent fiscal periods applying alternate ration due to acquisition threshold being met | unit | 4 | ||||
Minimum consolidated interest coverage ratio | 3 | ||||
Senior Credit Facility | Line of Credit | Payments Due First Business Day Of Quarter In 2025 | |||||
Line of Credit Facility [Line Items] | |||||
Quarterly principal payments | $ 9,400 | ||||
Senior Credit Facility | Line of Credit | Payments Due First Business Day Of Quarter In 2026 | |||||
Line of Credit Facility [Line Items] | |||||
Quarterly principal payments | 18,800 | ||||
Senior Credit Facility | Subsequent Event | |||||
Line of Credit Facility [Line Items] | |||||
Cross default provisions with debt instruments exceeding this amount | $ 300,000 | $ 150,000 | |||
Senior Credit Facility | Subsequent Event | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity | 3,390,000 | ||||
Senior Credit Facility | Subsequent Event | Line of Credit | Payments Due First Business Day Of Quarter In 2023 And 2024 | |||||
Line of Credit Facility [Line Items] | |||||
Quarterly principal payments | $ 4,700 | ||||
Senior Credit Facility | Subsequent Event | Line of Credit | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee | 0.10% | ||||
Senior Credit Facility | Subsequent Event | Line of Credit | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee | 0.275% | ||||
Senior Credit Facility | Revolving Credit Facility | Subsequent Event | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity | $ 2,640,000 | $ 2,510,000 | |||
Borrowed amount | $ 50,900 | ||||
Senior Credit Facility | Revolving Credit Facility | Subsequent Event | Line of Credit | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.125% | ||||
Senior Credit Facility | Revolving Credit Facility | Subsequent Event | Line of Credit | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.75% | ||||
Senior Credit Facility | Revolving Credit Facility | Subsequent Event | Line of Credit | Alternative Currency Term Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.125% | ||||
Senior Credit Facility | Revolving Credit Facility | Subsequent Event | Line of Credit | Alternative Currency Term Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.75% | ||||
Senior Credit Facility | Revolving Credit Facility | Subsequent Event | Line of Credit | Base Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.125% | ||||
Senior Credit Facility | Revolving Credit Facility | Subsequent Event | Line of Credit | Base Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.75% | ||||
Senior Credit Facility | Delayed Draw Term Loan Facility | Subsequent Event | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity | $ 750,000 | ||||
Borrowed amount | $ 750,000 | ||||
Consolidated leverage ratio, cash and cash equivalents threshold | $ 25,000 | ||||
Senior Credit Facility | Delayed Draw Term Loan Facility | Subsequent Event | Line of Credit | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.00% | ||||
Senior Credit Facility | Delayed Draw Term Loan Facility | Subsequent Event | Line of Credit | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.00% | ||||
Senior Credit Facility | Delayed Draw Term Loan Facility | Subsequent Event | Line of Credit | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.625% | ||||
Senior Credit Facility | Delayed Draw Term Loan Facility | Subsequent Event | Line of Credit | Base Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.00% | ||||
Senior Credit Facility | Delayed Draw Term Loan Facility | Subsequent Event | Line of Credit | Base Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.625% | ||||
Senior Credit Facility | Delayed Draw Term Loan Facility | Subsequent Event | Line of Credit | Fed Funds Effective Rate Overnight Index Swap Rate | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.50% | ||||
Senior Credit Facility | Standby Letters of Credit | Subsequent Event | Line of Credit | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Letter of credit fee | 1.125% | ||||
Senior Credit Facility | Standby Letters of Credit | Subsequent Event | Line of Credit | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Letter of credit fee | 1.75% | ||||
Senior Credit Facility | Performance Letters of Credit | Subsequent Event | Line of Credit | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Letter of credit fee | 0.675% | ||||
Senior Credit Facility | Performance Letters of Credit | Subsequent Event | Line of Credit | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Letter of credit fee | 1.125% | ||||
Senior Credit Facility | Letters of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Letters of credit and bank guarantees | 333,900 | ||||
Senior Credit Facility | Letters of Credit and Bank Guarantees | Canadian Dollars | |||||
Line of Credit Facility [Line Items] | |||||
Letters of credit and bank guarantees | $ 92,800 |
Debt Obligations - Borrowings u
Debt Obligations - Borrowings under Credit Facility and Applicable Interest Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Maximum amount outstanding | $ 517,883 | $ 1,462,069 | $ 576,993 | $ 2,023,326 |
Average daily amount outstanding | $ 416,089 | $ 1,255,171 | $ 360,609 | $ 1,395,207 |
Weighted-average interest rate | 2.13% | 1.57% | 2.05% | 2.13% |
Debt Obligations - Bridge Facil
Debt Obligations - Bridge Facility Commitment (Details) - Bridge Facility - Bridge Loan - USD ($) | Sep. 01, 2021 | Sep. 30, 2021 | Oct. 08, 2021 | Sep. 23, 2021 |
Line of Credit Facility [Line Items] | ||||
Length of bridge facility | 364 days | |||
Borrowing capacity | $ 2,180,000,000 | |||
Remaining borrowing capacity after reductions | $ 696,100,000 | |||
Commitment fees | $ 4,400,000 | |||
Interest expense | 3,100,000 | |||
Deferred financing costs | $ 1,300,000 | |||
Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Remaining borrowing capacity after reductions | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Future minimum lease payments for short-term leases | $ 18.7 | $ 18.7 | ||
Maximum guaranteed residual value | 886.9 | 886.9 | ||
Obligations for operating leases not yet commenced | $ 6.4 | $ 6.4 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease terms of operating leases not yet commenced | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease terms of operating leases not yet commenced | 7 years | 7 years | ||
Related Parties | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease term (up to) | 10 years | 10 years | ||
Lease expense | $ 2.4 | $ 4.5 | $ 10.4 | $ 13.2 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finance lease cost: | ||||
Amortization of lease assets | $ 231 | $ 53 | $ 705 | $ 515 |
Interest on lease liabilities | 18 | 16 | 68 | 50 |
Operating lease cost | 25,323 | 29,577 | 80,046 | 89,289 |
Short-term and variable lease cost | 176,605 | 160,365 | 494,846 | 478,683 |
Total lease cost | $ 202,177 | $ 190,011 | $ 575,665 | $ 568,537 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Remainder of 2021 | $ 23,964 | |
2022 | 80,516 | |
2023 | 58,265 | |
2024 | 36,341 | |
2025 | 24,449 | |
Thereafter | 36,996 | |
Total future minimum operating and finance lease payments | 260,531 | |
Less imputed interest | (20,342) | |
Total lease liabilities | 240,189 | |
Finance Leases | ||
Remainder of 2021 | 296 | |
2022 | 872 | |
2023 | 666 | |
2024 | 409 | |
2025 | 126 | |
Thereafter | 0 | |
Total future minimum operating and finance lease payments | 2,369 | |
Less imputed interest | (116) | |
Total lease liabilities | 2,253 | $ 2,228 |
Total | ||
Remainder of 2021 | 24,260 | |
2022 | 81,388 | |
2023 | 58,931 | |
2024 | 36,750 | |
2025 | 24,575 | |
Thereafter | 36,996 | |
Total future minimum operating and finance lease payments | 262,900 | |
Less imputed interest | (20,458) | |
Total lease liabilities | $ 242,442 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) | Sep. 30, 2021 |
Weighted average remaining lease term (in years): | |
Operating leases | 4 years 1 month 28 days |
Finance leases | 2 years 10 months 24 days |
Weighted average discount rate: | |
Operating leases | 3.90% |
Finance leases | 3.70% |
Equity - Repurchases of Common
Equity - Repurchases of Common Stock Under Stock Repurchase Programs (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Equity [Abstract] | |||||||
Shares (in shares) | 185 | 314 | 222 | 720 | 0 | 0 | 5,960 |
Amount | $ 16,828 | $ 29,450 | $ 17,710 | $ 49,949 | $ 0 | $ 0 | $ 200,000 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase of common stock | $ 17,764 | $ 0 | $ 66,687 | $ 200,000 |
2018 and 2020 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Amount remaining under stock repurchase programs | $ 472,800 | $ 472,800 |
Equity - Dividends (Details)
Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 27, 2021 | May 27, 2021 | Mar. 25, 2021 | Dec. 11, 2020 | Aug. 26, 2020 | May 28, 2020 | Mar. 26, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 |
Equity [Abstract] | |||||||||||||
Cash dividends declared (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.05 |
Cash dividends declared | $ 8,638 | $ 8,650 | $ 8,429 | $ 8,933 | $ 7,244 | $ 7,182 | $ 7,184 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021USD ($)shares | Sep. 30, 2021USD ($)incentivePlan | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)incentivePlanshares | Sep. 30, 2020USD ($)shares | |
Share-based Payment Arrangement [Abstract] | |||||
Number of equity incentive plans | incentivePlan | 2 | 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash stock compensation expense | $ 21,642 | $ 21,431 | $ 64,252 | $ 58,323 | |
Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash stock compensation expense | $ 15,400 | $ 17,400 | |||
Shares granted (in shares) | shares | 174,000 | 436,000 | |||
Number of common shares issued in connection with performance units (in shares) | shares | 500,000 | 500,000 | |||
Restricted Stock Units to be Settled in Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of restricted stock, vested | $ 121,700 | $ 48,800 | |||
Non-cash stock compensation expense | 48,800 | $ 41,000 | |||
Unrecognized compensation cost, related to unvested RSUs to be settled in common stock, total | $ 101,000 | $ 101,000 | |||
Expected weighted average period to recognize compensation cost on RSUs to be settled in common stock | 2 years 2 months 15 days | ||||
Shares granted (in shares) | shares | 945,000 | 2,008,000 | |||
Restricted Stock Units to be Settled in Common Stock | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | shares | 700,000 | ||||
Fair market value at date of grant | $ 72,300 | ||||
Restricted Stock Units to be Settled in Common Stock | Subsequent Event | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period for RSUs to be settled in stock | 5 years | ||||
Restricted Stock Units to be Settled in Common Stock | Subsequent Event | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period for RSUs to be settled in stock | 10 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of PSUs and RSUs to be Settled in Common Stock Activity (Details) - $ / shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Restricted Stock and RSUs to be Settled in Common Stock | ||
Shares | ||
Unvested, shares, beginning of period (in shares) | 3,869 | 3,265 |
Shares granted (in shares) | 945 | 2,008 |
Vested, shares (in shares) | (1,442) | (1,228) |
Forfeited, shares (in shares) | (119) | (114) |
Unvested, shares, end of period (in shares) | 3,253 | 3,931 |
Weighted Average Grant Date Fair Value | ||
Unvested, weighted average grant date fair value, beginning of period (in usd per share) | $ 37.57 | $ 35.34 |
Weighted average grant date fair value (in dollars per share) | 82.75 | 39.65 |
Vested, weighted average grant date fair value (in usd per share) | 36.92 | 35.68 |
Forfeited, weighted average grant date fair value (in usd per share) | 47.23 | 36.26 |
Unvested, weighted average grant date fair value, end of period (in usd per share) | $ 50.71 | $ 37.41 |
Performance Stock Units | ||
Shares | ||
Unvested, shares, beginning of period (in shares) | 1,047 | 848 |
Shares granted (in shares) | 174 | 436 |
Vested, shares (in shares) | (268) | (238) |
Forfeited, shares (in shares) | (11) | 0 |
Unvested, shares, end of period (in shares) | 942 | 1,046 |
Weighted Average Grant Date Fair Value | ||
Unvested, weighted average grant date fair value, beginning of period (in usd per share) | $ 37.65 | $ 33.20 |
Weighted average grant date fair value (in dollars per share) | 90.44 | 34.59 |
Vested, weighted average grant date fair value (in usd per share) | 38.28 | 17.48 |
Forfeited, weighted average grant date fair value (in usd per share) | 36.90 | |
Unvested, weighted average grant date fair value, end of period (in usd per share) | $ 47.27 | $ 37.35 |
Stock-Based Compensation - Gran
Stock-Based Compensation - Grant Date Fair Value for Awards of Performance Units Inputs (Details) - Performance Stock Units - $ / shares | Mar. 25, 2021 | Mar. 26, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Valuation date price based on closing stock prices (in dollars per share) | $ 83.48 | $ 31.49 |
Expected volatility | 36.00% | 34.00% |
Risk-free interest rate | 0.26% | 0.35% |
Term in years | 2 years 9 months 7 days | 2 years 9 months 3 days |
Stock-Based Compensation - RSUs
Stock-Based Compensation - RSUs to be Settled in Cash (Details) - Restricted Stock Units to be Settled in Cash - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense related to RSUs to be settled in cash | $ 13.7 | $ 5.3 | |
Payments to settle liabilities under compensation plan | 13.2 | $ 4.3 | |
Accrued liabilities under compensation plan | $ 7.4 | $ 8.7 |
Commitments and Contingencies -
Commitments and Contingencies - Investments in Affiliates and Other Entities (Details) $ in Millions | Sep. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Committed contribution amount for investment | $ 13.6 |
Commitments and Contingencies_2
Commitments and Contingencies - Committed Expenditures (Details) $ in Millions | Sep. 30, 2021USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Estimated committed in first half of 2022 | $ 68.4 |
Vehicle Fleet Committed Capital | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Estimated committed, remainder of fiscal year | 58.5 |
Estimated committed in 2022 | $ 106.9 |
Commitments and Contingencies_3
Commitments and Contingencies - Legal Proceedings (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | 52 Months Ended | |||||||||
Jul. 31, 2021USD ($) | Aug. 31, 2020USD ($) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2020USD ($) | Apr. 30, 2019USD ($) | Nov. 30, 2021USD ($) | Aug. 31, 2019building | |
Loss Contingencies [Line Items] | |||||||||||||||
Gross Profit | $ (534,676) | $ (507,514) | $ (1,355,277) | $ (1,194,974) | |||||||||||
Number of buildings with property damage | building | 2 | ||||||||||||||
Lorenzo Benton v Telecom Network Specialists Inc | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damages sought | $ 37,000 | ||||||||||||||
Damages awarded | $ 9,500 | ||||||||||||||
Reasonably possible estimate of loss | 9,500 | 9,500 | |||||||||||||
Disputed Contract Termination | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Charge to earnings related to legal proceedings | $ 79,200 | ||||||||||||||
Net receivable position on projects | 120,000 | 120,000 | |||||||||||||
Disputed Contract Termination | Adjustment | Correction of Estimated Project Costs and Percentage of Completion Method | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Gross Profit | $ 14,500 | ||||||||||||||
Redes | Telecommunication Networks Construction and Operation | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Term of post-construction operation and maintenance period | 10 years | ||||||||||||||
Redes | Disputed Contract Termination | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Advance payments received | $ 87,000 | ||||||||||||||
On-demand performance bonds | 25,000 | ||||||||||||||
Construction costs incurred | $ 157,000 | ||||||||||||||
Payments received on construction contracts | $ 100,000 | ||||||||||||||
Net receivable position on projects | $ 87,000 | $ 87,000 | |||||||||||||
Redes | Disputed Contract Termination | Telecommunication Networks Construction and Operation | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Aggregate consideration for projects | 248,000 | ||||||||||||||
Aggregate consideration to be paid during the construction period | 151,000 | ||||||||||||||
Aggregate consideration to be paid during the post-construction operation and maintenance period | $ 97,000 | ||||||||||||||
Redes | Disputed Contract Termination | Forecast | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Amount claimed in arbitration | $ 190,000 | ||||||||||||||
QPS Engineering, LLC | Maurepas Project Dispute | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damages sought | $ 22,000 | ||||||||||||||
PRONATEL | Disputed Contract Termination | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damages sought | $ 38,000 | $ 45,000 | |||||||||||||
Bond proceeds received | $ 112,000 | ||||||||||||||
Maurepas | Maurepas Project Dispute | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damages sought | $ 59,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Concentrations of Credit Risk (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021USD ($)Customer | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($)Customer | Sep. 30, 2021USD ($)Customer | Sep. 30, 2020USD ($)Customer | Dec. 31, 2020USD ($)Customer | |
Concentration Risk [Line Items] | ||||||
Provision for credit losses | $ 249 | $ 1,566 | $ 24,169 | $ 2,910 | ||
Ownership percentage of customer in joint venture | 50.00% | 50.00% | ||||
Customer Concentration Risk | ||||||
Concentration Risk [Line Items] | ||||||
Number of customers representing ten percent or more of net receivable position | Customer | 1 | 1 | 0 | |||
Number of customers representing ten percent or more of consolidated revenues | Customer | 0 | 0 | 0 | 0 | ||
Limetree Bay Refining, LLC | ||||||
Concentration Risk [Line Items] | ||||||
Accounts receivable, before allowance for credit loss | $ 31,300 | $ 31,300 | ||||
Limetree Bay Terminals, LLC | ||||||
Concentration Risk [Line Items] | ||||||
Accounts receivable, before allowance for credit loss | 700 | $ 700 | ||||
Limetree Bay Refining, LLC And Limetree Terminal, LLC | ||||||
Concentration Risk [Line Items] | ||||||
Provision for credit losses | $ 23,600 | |||||
Customer With Joint Venture Interest | Customer Concentration Risk | Accounts Receivable | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 12.00% | |||||
Customer With Financial Difficulties | Financial Asset, Past Due | Underground Utility and Infrastructure Solutions | ||||||
Concentration Risk [Line Items] | ||||||
Nonpayment of receivables | 17,500 | $ 17,500 | $ 27,500 | |||
Collection of receivables | $ 10,000 |
Commitments and Contingencies_5
Commitments and Contingencies - Insurance (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Commitment And Contingencies [Line Items] | ||
Employer's liability claims subject to deductible per occurrence | $ 5,000 | |
Worker's compensation claims per occurrence | 5,000 | |
Auto liability insurance claims deductible | 15,000 | |
General liability insurance claims deductible | 15,000 | |
Employee health care benefit plans subject to deductible per claimant | 800 | |
Insurance and other non-current liabilities | 400,284 | $ 391,221 |
Employer's Liability, Workers' Compensation, Auto Liability, General Liability and Group Health Care Claims | ||
Commitment And Contingencies [Line Items] | ||
Gross amount accrued for insurance claims | 316,800 | 319,500 |
Insurance and other non-current liabilities | 232,800 | 238,000 |
Related insurance recoveries/receivables | 26,100 | 35,600 |
Related insurance recoveries/receivables included in prepaid expenses and other current assets | 400 | 400 |
Long-term insurance receivables | $ 25,700 | $ 35,200 |
Commitments and Contingencies_6
Commitments and Contingencies - Letters of Credit (Details) $ in Millions | Sep. 30, 2021USD ($) |
Letters of Credit | Senior Credit Facility | |
Loss Contingencies [Line Items] | |
Outstanding letters of credit and bank guarantees | $ 333.9 |
Commitments and Contingencies_7
Commitments and Contingencies - Bonds and Parent Guarantees (Details) - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2019 | Sep. 30, 2021 | |
Performance Bonds | ||
Guarantor Obligations [Line Items] | ||
Total amount of outstanding performance bonds | $ 3,800 | |
Estimate | Performance Bonds | ||
Guarantor Obligations [Line Items] | ||
Estimated cost to complete bonded projects | $ 1,100 | |
PRONATEL | Project Contract Termination | ||
Guarantor Obligations [Line Items] | ||
Bond proceeds received | $ 112 |
Commitments and Contingencies_8
Commitments and Contingencies - Deferred Compensation Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Contributions by employer | $ 200,000 | $ 200,000 | $ 1,000,000 | $ 1,000,000 | |
Employer discretionary contribution amount | 0 | 0 | |||
Deferred compensation liability, noncurrent | 69,100,000 | 69,100,000 | $ 58,200,000 | ||
Life insurance | 68,400,000 | 68,400,000 | $ 56,500,000 | ||
Change in fair market value of assets associated with deferred compensation plan | (200,000) | 2,800,000 | 5,300,000 | 1,900,000 | |
Change in fair market value of liabilities associated with deferred compensation plan | $ 0 | $ 3,300,000 | $ 6,000,000 | $ 1,900,000 |
Commitments and Contingencies_9
Commitments and Contingencies - Residual Value Guarantees (Details) $ in Millions | Sep. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Maximum guaranteed residual value | $ 886.9 |
Commitments and Contingencie_10
Commitments and Contingencies - Deferral of Employer Payroll Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Deferred payment of employer payroll taxes | $ 108.9 | |
Percentage of deferred employer payroll taxes due, remainder of fiscal year | 50.00% | |
Percentage of deferred employer payroll taxes due, 2022 | 50.00% |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Segmentdivision | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Number of internal divisions | division | 2 | ||||
Revenues | $ 3,353,278 | $ 3,020,161 | $ 9,056,675 | $ 8,290,487 | |
Foreign Countries | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 460,800 | 390,600 | 1,390,000 | 1,180,000 | |
Property and equipment | 317,600 | 317,600 | $ 336,400 | ||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 382,072 | $ 320,576 | $ 1,123,077 | $ 917,621 | |
Percentage of foreign revenues | 83.00% | 82.00% | 81.00% | 77.00% |
Segment Information - Summarize
Segment Information - Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 3,353,278 | $ 3,020,161 | $ 9,056,675 | $ 8,290,487 |
Operating income (loss) | 248,077 | 242,215 | 523,457 | 435,868 |
Depreciation | 61,616 | 56,244 | 186,480 | 165,180 |
Corporate and Non-Allocated Costs | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | (108,373) | (102,381) | (301,677) | (273,909) |
Depreciation | 3,462 | 4,294 | 12,372 | 12,563 |
Electric Power Infrastructure Solutions | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,328,468 | 2,107,621 | 6,536,363 | 5,667,566 |
Operating income (loss) | 288,283 | 268,376 | 724,217 | 581,030 |
Depreciation | 37,196 | 30,637 | 110,925 | 88,337 |
Electric Power Infrastructure Solutions | Operating Segments | Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | (15,400) | (46,900) | ||
Underground Utility and Infrastructure Solutions | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,024,810 | 912,540 | 2,520,312 | 2,622,921 |
Operating income (loss) | 68,167 | 76,220 | 100,917 | 128,747 |
Depreciation | $ 20,958 | $ 21,313 | $ 63,183 | $ 64,280 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Net Effects of Changes in Operating Assets and Liabilities, Net, on Cash Flows from Operating Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Accounts and notes receivable | $ (411,890) | $ (322,579) | $ (299,857) | $ 37,541 |
Contract assets | (96,423) | 21,950 | (308,849) | 121,999 |
Inventories | 5 | 8,655 | (6,139) | 6,787 |
Prepaid expenses and other current assets | 37,406 | 19,655 | (4,943) | 70,133 |
Accounts payable and accrued expenses and other non-current liabilities | 230,631 | 235,633 | 289,833 | 147,888 |
Contract liabilities | (1,397) | (79,964) | (27,027) | (73,567) |
Other, net | (6,027) | (7,813) | (15,205) | (20,066) |
Net change in operating assets and liabilities, net of non-cash transactions | $ (247,695) | $ (124,463) | $ (372,187) | $ 290,715 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Cash, Cash Equivalents and Restricted Cash [Line Items] | ||||||
Cash and cash equivalents | $ 1,696,210 | $ 212,473 | $ 184,620 | $ 216,935 | $ 530,670 | $ 164,798 |
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows | 1,699,096 | 214,715 | 186,808 | 219,102 | 532,853 | 169,745 |
Prepaid Expenses and Other Current Assets | ||||||
Cash, Cash Equivalents and Restricted Cash [Line Items] | ||||||
Restricted cash and cash equivalents | 2,108 | 1,460 | 1,275 | 1,252 | 1,266 | 4,026 |
Other Assets | ||||||
Cash, Cash Equivalents and Restricted Cash [Line Items] | ||||||
Restricted cash and cash equivalents | $ 778 | $ 782 | $ 913 | $ 915 | $ 917 | $ 921 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Supplemental Cash Flow Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ (25,331) | $ (29,333) | $ (79,730) | $ (88,570) |
Operating cash flows from finance leases | (18) | (16) | (68) | (50) |
Financing cash flows from finance leases | (168) | (102) | (688) | (525) |
Lease assets obtained in exchange for lease liabilities: | ||||
Operating leases | 17,081 | 16,619 | 41,686 | 56,970 |
Finance leases | 112 | 275 | 398 | 1,158 |
Rental purchase option assets obtained in exchange for rental purchase option liabilities | $ 1,129 | $ 3,306 | $ 7,009 | $ 13,229 |
Supplemental Cash Flow Inform_6
Supplemental Cash Flow Information - Additional Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Interest paid | $ (2,260) | $ (8,443) | $ (26,883) | $ (30,704) |
Income taxes paid | (35,740) | (86,077) | (103,225) | (149,690) |
Income tax refunds | $ 2,419 | $ 1,087 | $ 9,211 | $ 5,545 |
Supplemental Cash Flow Inform_7
Supplemental Cash Flow Information - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Term Loan | |
Cash and Cash Equivalents [Line Items] | |
Fair value of inventory transferred | $ 8.5 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - USD ($) shares in Millions, $ in Millions | Oct. 13, 2021 | Oct. 31, 2021 | Oct. 08, 2021 | Oct. 07, 2021 |
Integral Unconsolidated Affiliates | ||||
Subsequent Event [Line Items] | ||||
Equity interest | 44.00% | |||
Senior Credit Facility | Line of Credit | ||||
Subsequent Event [Line Items] | ||||
Borrowing capacity | $ 3,390 | |||
Delayed Draw Term Loan Facility | Senior Credit Facility | Line of Credit | ||||
Subsequent Event [Line Items] | ||||
Borrowing capacity | 750 | |||
Revolving Credit Facility | Senior Credit Facility | Line of Credit | ||||
Subsequent Event [Line Items] | ||||
Borrowing capacity | $ 2,640 | $ 2,510 | ||
Blattner Holding Company | ||||
Subsequent Event [Line Items] | ||||
Cash consideration | $ 2,290 | |||
Number of shares granted for acquired companies (in shares) | 3.3 | |||
Value of quanta common stock issued | $ 345.4 |
Uncategorized Items - pwr-20210
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |