Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 22, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 12.5 | ||
Entity Common Stock, Shares Outstanding | 142,690,314 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement for the 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Entity Central Index Key | 0001050915 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Houston, Texas |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 229,097 | $ 184,620 |
Accounts receivable, net of allowances of $49,749 and $16,546 | 3,400,318 | 2,716,083 |
Contract assets | 803,453 | 453,832 |
Inventories | 84,659 | 50,472 |
Prepaid expenses and other current assets | 215,050 | 183,382 |
Total current assets | 4,732,577 | 3,588,389 |
Property and equipment, net of accumulated depreciation of $1,503,498 and $1,372,132 | 1,919,697 | 1,560,656 |
Operating lease right-of-use assets | 240,605 | 256,845 |
Other assets, net | 632,244 | 435,713 |
Other intangible assets, net of accumulated amortization of $682,498 and $517,574 | 1,801,180 | 435,655 |
Goodwill | 3,528,886 | 2,121,014 |
Total assets | 12,855,189 | 8,398,272 |
Current Liabilities: | ||
Current maturities of long-term debt and short-term debt | 29,166 | 14,764 |
Current portion of operating lease liabilities | 78,251 | 85,134 |
Accounts payable and accrued expenses | 2,254,671 | 1,509,794 |
Contract liabilities | 802,872 | 528,864 |
Total current liabilities | 3,164,960 | 2,138,556 |
Long-term debt, net of current maturities | 3,724,474 | 1,174,294 |
Operating lease liabilities, net of current portion | 170,427 | 178,822 |
Deferred income taxes | 191,098 | 166,407 |
Insurance and other non-current liabilities | 487,309 | 391,221 |
Total liabilities | 7,738,268 | 4,049,300 |
Commitments and Contingencies | ||
Equity: | ||
Common stock | 2 | 2 |
Additional paid-in capital | 2,615,410 | 2,170,026 |
Retained earnings | 3,714,843 | 3,264,967 |
Accumulated other comprehensive loss | (237,689) | (232,997) |
Treasury stock, 25,912,579 and 24,410,601 common shares | (980,265) | (857,817) |
Total stockholders’ equity | 5,112,301 | 4,344,181 |
Non-controlling interests | 4,620 | 4,791 |
Total equity | 5,116,921 | 4,348,972 |
Total liabilities and equity | $ 12,855,189 | $ 8,398,272 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Allowances for doubtful accounts on current receivables | $ 49,749 | $ 16,546 |
Accumulated depreciation on property and equipment | 1,503,498 | 1,372,132 |
Accumulated amortization on other intangible assets | $ 682,498 | $ 517,574 |
Treasury stock, common shares (in shares) | 25,912,579 | 24,410,601 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 168,546,513 | 162,710,792 |
Common stock, shares outstanding (in shares) | 142,633,934 | 138,300,191 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenues | $ 12,980,213 | $ 11,202,672 | $ 12,112,153 |
Cost of services (including depreciation) | 11,026,954 | 9,541,825 | 10,511,901 |
Gross profit | 1,953,259 | 1,660,847 | 1,600,252 |
Equity in earnings of integral unconsolidated affiliates | 44,061 | 11,303 | 0 |
Selling, general and administrative expenses | (1,155,956) | (975,074) | (955,991) |
Amortization of intangible assets | (165,366) | (76,704) | (62,091) |
Asset impairment charges | (5,743) | (8,282) | (13,892) |
Change in fair value of contingent consideration liabilities | (6,734) | (719) | (13,404) |
Operating income | 663,521 | 611,371 | 554,874 |
Interest and other financing expenses | (68,899) | (45,013) | (66,890) |
Interest income | 3,194 | 2,449 | 927 |
Other income, net | 25,085 | 2,539 | 83,376 |
Income before income taxes | 622,901 | 571,346 | 572,287 |
Provision for income taxes | 130,918 | 119,387 | 165,472 |
Net income | 491,983 | 451,959 | 406,815 |
Less: Net income attributable to non-controlling interests | 6,027 | 6,363 | 4,771 |
Net income attributable to common stock | $ 485,956 | $ 445,596 | $ 402,044 |
Earnings per share attributable to common stock: | |||
Basic (in dollars per share) | $ 3.45 | $ 3.15 | $ 2.76 |
Diluted (in dollars per share) | $ 3.34 | $ 3.07 | $ 2.73 |
Shares used in computing earnings per share: | |||
Weighted average basic shares outstanding (in shares) | 140,824 | 141,380 | 145,710 |
Weighted average diluted shares outstanding (in shares) | 145,373 | 145,247 | 147,534 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 491,983 | $ 451,959 | $ 406,815 |
Other comprehensive income (loss), net of taxes: | |||
Foreign currency translation adjustment, net of tax of $0, $0 and $0 | (5,877) | 11,439 | 43,535 |
Other, net of tax of $(381), $865 and $(200) | 1,185 | (2,618) | 695 |
Other comprehensive income (loss), net of taxes | (4,692) | 8,821 | 44,230 |
Comprehensive income | 487,291 | 460,780 | 451,045 |
Less: Comprehensive income attributable to non-controlling interests | 6,027 | 6,363 | 4,771 |
Total comprehensive income attributable to common stock | $ 481,264 | $ 454,417 | $ 446,274 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 |
Other comprehensive income (loss) other, tax | $ (381) | $ 865 | $ (200) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities: | |||
Net income | $ 491,983 | $ 451,959 | $ 406,815 |
Adjustments to reconcile net income to net cash provided by operating activities — | |||
Depreciation | 255,529 | 225,256 | 218,107 |
Amortization of intangible assets | 165,366 | 76,704 | 62,091 |
Asset impairment charges | 5,743 | 8,282 | 13,892 |
Impairment of cost method investment | 0 | 9,311 | 0 |
Change in fair value of contingent consideration liabilities | 6,734 | 719 | 13,404 |
Equity in earnings of unconsolidated affiliates, net of distributions | (28,682) | (1,309) | (76,801) |
Amortization of deferred financing costs | 8,405 | 5,126 | 1,870 |
Gain on sale of property and equipment | (9,116) | (3,056) | (5,797) |
Provision for credit losses | 34,890 | 3,656 | 11,249 |
Deferred income tax expense (benefit) | 26,071 | (60,016) | (7,919) |
Non-cash stock-based compensation | 88,259 | 91,641 | 52,013 |
Foreign currency and other | (5,110) | (5,159) | (5,568) |
Payments for contingent consideration liabilities | 0 | (14,506) | 0 |
Changes in operating assets and liabilities, net of non-cash transactions | (457,682) | 327,369 | (156,805) |
Net cash provided by operating activities | 582,390 | 1,115,977 | 526,551 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (385,852) | (260,052) | (261,762) |
Proceeds from sale of property and equipment | 49,186 | 35,390 | 31,142 |
Proceeds from insurance settlements related to property and equipment | 535 | 542 | 1,964 |
Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired | (2,451,703) | (292,573) | (387,966) |
Proceeds from disposition of businesses | 0 | 18,785 | 0 |
Investments in unconsolidated affiliates and other | (139,021) | (14,856) | (47,056) |
Cash received from investments | 29,109 | 13,963 | 46,590 |
Cash paid for intangible assets | (867) | (522) | (508) |
Net cash used in investing activities | (2,898,613) | (499,323) | (617,596) |
Cash Flows from Financing Activities: | |||
Borrowings under credit facility | 5,316,002 | 2,983,529 | 6,175,558 |
Payments under credit facility | (4,265,478) | (4,187,645) | (5,903,069) |
Proceeds from notes offerings | 1,487,450 | 990,130 | 0 |
Payments on other long-term debt | (3,635) | (2,970) | (2,203) |
Net borrowings (repayments) of short-term debt | 11,391 | (4,846) | (28,292) |
Deferred financing costs | (12,568) | (11,089) | (2,309) |
Payments for contingent consideration liabilities | (263) | (61,483) | 0 |
Distributions to non-controlling interests, net of contributions received | (6,357) | (5,404) | (2,526) |
Payments related to tax withholding for share-based compensation | (64,956) | (25,447) | (16,144) |
Payments of dividends | (34,022) | (28,891) | (23,236) |
Repurchase of common stock | (66,687) | (247,249) | (20,092) |
Net cash provided by (used in) financing activities | 2,360,877 | (601,365) | 177,687 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 425 | 1,774 | (153) |
Net increase in cash, cash equivalents and restricted cash | 45,079 | 17,063 | 86,489 |
Cash, cash equivalents and restricted cash, beginning of year | 186,808 | 169,745 | 83,256 |
Cash, cash equivalents and restricted cash, end of year | $ 231,887 | $ 186,808 | $ 169,745 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common StockCommon Stock | Common StockExchangeable Shares | Preferred StockSeries G | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock | Total Stockholders' Equity | Total Stockholders' EquityCumulative Effect, Period of Adoption, Adjustment | Non-controlling Interests |
Balance (in shares) at Dec. 31, 2018 | 141,103,900 | 486,112 | 1 | ||||||||||
Balance at Dec. 31, 2018 | $ 3,605,453 | $ 2 | $ 0 | $ 0 | $ 1,967,354 | $ 2,477,291 | $ (286,048) | $ (554,440) | $ 3,604,159 | $ 1,294 | |||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||||||||||
Other comprehensive income (loss) | $ 44,230 | 44,230 | 44,230 | ||||||||||
Acquisitions (in shares) | 60,860 | ||||||||||||
Acquisitions | 1,791 | 1,791 | 1,791 | ||||||||||
Stock-based compensation activity (in shares) | 1,085,165 | ||||||||||||
Stock-based compensation activity | 35,086 | 55,465 | (20,379) | 35,086 | |||||||||
Exchange of exchangeable shares (in shares) | 449,929 | (449,929) | |||||||||||
Retirement of preferred stock (in shares) | 1 | ||||||||||||
Common stock repurchases (in shares) | (375,536) | ||||||||||||
Common stock repurchases | (11,954) | (11,954) | (11,954) | ||||||||||
Dividend declared | (25,064) | (25,064) | (25,064) | ||||||||||
Distributions to non-controlling interests | (2,526) | (2,526) | |||||||||||
Net income | 406,815 | 402,044 | 402,044 | 4,771 | |||||||||
Balance (in shares) at Dec. 31, 2019 | 142,324,318 | 36,183 | 0 | ||||||||||
Balance at Dec. 31, 2019 | 4,053,831 | $ (3,841) | $ 2 | $ 0 | $ 0 | 2,024,610 | 2,854,271 | $ (3,841) | (241,818) | (586,773) | 4,050,292 | $ (3,841) | 3,539 |
Other comprehensive income (loss) | 8,821 | 8,821 | 8,821 | ||||||||||
Acquisitions (in shares) | 1,338,746 | ||||||||||||
Acquisitions | 57,289 | 57,289 | 57,289 | ||||||||||
Stock-based compensation activity (in shares) | 1,280,489 | ||||||||||||
Stock-based compensation activity | 67,032 | 88,127 | (21,095) | 67,032 | |||||||||
Exchange of exchangeable shares (in shares) | 36,183 | (36,183) | |||||||||||
Common stock repurchases (in shares) | (6,679,545) | ||||||||||||
Common stock repurchases | (249,949) | (249,949) | (249,949) | ||||||||||
Dividend declared | (30,543) | (30,543) | (30,543) | ||||||||||
Distributions to non-controlling interests | (5,404) | (5,404) | |||||||||||
Other | (223) | (516) | (516) | 293 | |||||||||
Net income | 451,959 | 445,596 | 445,596 | 6,363 | |||||||||
Balance (in shares) at Dec. 31, 2020 | 138,300,191 | 0 | 0 | ||||||||||
Balance at Dec. 31, 2020 | 4,348,972 | $ 2 | $ 0 | $ 0 | 2,170,026 | 3,264,967 | (232,997) | (857,817) | 4,344,181 | 4,791 | |||
Other comprehensive income (loss) | (4,692) | (4,692) | (4,692) | ||||||||||
Acquisitions (in shares) | 3,514,048 | ||||||||||||
Acquisitions | 362,344 | 362,344 | 362,344 | ||||||||||
Stock-based compensation activity (in shares) | 1,540,259 | ||||||||||||
Stock-based compensation activity | 24,580 | 83,040 | (58,460) | 24,580 | |||||||||
Common stock repurchases (in shares) | (720,564) | ||||||||||||
Common stock repurchases | (63,988) | (63,988) | (63,988) | ||||||||||
Dividend declared | (36,080) | (36,080) | (36,080) | ||||||||||
Distributions to non-controlling interests | (6,357) | (6,357) | |||||||||||
Other | 159 | 159 | |||||||||||
Net income | 491,983 | 485,956 | 485,956 | 6,027 | |||||||||
Balance (in shares) at Dec. 31, 2021 | 142,633,934 | 0 | 0 | ||||||||||
Balance at Dec. 31, 2021 | $ 5,116,921 | $ 2 | $ 0 | $ 0 | $ 2,615,410 | $ 3,714,843 | $ (237,689) | $ (980,265) | $ 5,112,301 | $ 4,620 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | Dec. 01, 2021 | Aug. 27, 2021 | May 27, 2021 | Mar. 25, 2021 | Dec. 11, 2020 | Aug. 26, 2020 | May 28, 2020 | Mar. 26, 2020 | Dec. 11, 2019 | Aug. 28, 2019 | May 24, 2019 | Mar. 21, 2019 | Dec. 06, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | ||||||||||||||||
Dividends declared per share (in dollars per share) | $ 0.07 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.25 | $ 0.21 | $ 0.17 |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 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, renewable energy, communications, pipeline and energy industries in the United States, Canada, Australia and select other international markets. Beginning with the three months ended December 31, 2021, Quanta reports its results under three reportable segments: (1) Electric Power Infrastructure Solutions, (2) Renewable Energy Infrastructure Solutions and (3) Underground Utility and Infrastructure Solutions. The Renewable Energy Infrastructure Solutions segment was added primarily due to the acquisition of Blattner Holding Company and its operating subsidiaries (collectively, Blattner) as described below. In conjunction with this change, certain prior period amounts have been recast to conform to this new segment reporting structure. On October 13, 2021, Quanta completed the acquisition of Blattner. Blattner is a large and leading utility-scale renewable energy infrastructure solutions provider that is located and primarily operates in North America. For additional information regarding this acquisition, see Note 6. 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 of operations have been included in Quanta’s consolidated financial statements since 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 include design, procurement, new construction, upgrade and repair and maintenance for electric power transmission and distribution infrastructure, both overhead and underground, 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 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 bare hand and hot stick methods and Quanta’s robotic arm techniques; and the installation of “smart grid” technologies on electric power networks. 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 services related to commercial and industrial wiring. Additionally, this segment provides aviation services primarily for the utility industry, including the transportation of line workers, the setting of poles and towers and the stringing of wires. 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, are also included in the segment. Renewable Energy Infrastructure Solutions Segment The Renewable Energy Infrastructure Solutions segment provides comprehensive infrastructure solutions to customers involved in the renewable energy industry. Services include engineering, procurement, new construction and repair and maintenance for renewable generation facilities, such as utility-scale wind, solar, and hydropower generation facilities and battery storage facilities, as well as engineering and construction services for substations and switchyards, transmission and other electrical infrastructure needed to interconnect and transmit renewable energy generation and battery storage facilities. Underground Utility and Infrastructure Solutions Segment The Underground Utility and Infrastructure Solutions segment provides comprehensive infrastructure solutions for customers involved in the development, transportation, distribution, storage and processing of natural gas, oil and other products. Services include design, engineering, procurement, new construction, upgrade and repair and maintenance for natural gas systems for gas utility customers, as well as pipeline protection, integrity testing, rehabilitation and replacement services. Quanta also provides catalyst replacement services, high-pressure and critical-path turnaround services, instrumentation and electrical services, piping, fabrication and storage tank services for 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. This segment also provides engineering, construction and maintenance services for energy transition and carbon-reduction related projects, such as alternative fuel facilities, carbon capture systems and hydrogen facilities. |
Basis of Presentation and Certa
Basis of Presentation and Certain Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Certain Accounting Policies | BASIS OF PRESENTATION AND CERTAIN ACCOUNTING POLICIES: Principles of Consolidation The consolidated financial statements of Quanta include the accounts of Quanta Services, Inc. and its wholly-owned subsidiaries, which are also referred to as its operating companies. The consolidated financial statements also include the accounts of certain of Quanta’s investments in joint ventures, which are either consolidated or proportionately consolidated, as discussed in the following summary of significant accounting policies. Investments in affiliated entities in which Quanta does not have a controlling financial interest, but over which Quanta has significant influence, usually because Quanta holds a voting interest of between 20% and 50% 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. 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 See Note 4 for Quanta’s accounting policy related to revenue recognition and related balance sheet accounts. Inventories Inventories consist primarily of parts and supplies held for use in the ordinary course of business, which are valued by Quanta at the lower of cost or net realizable value. Cost is determined by using either the first-in, first-out (FIFO) method or the average costing method. Inventories also include certain job specific materials not yet installed, which are valued using the specific identification method. Property and Equipment Property and equipment are stated at cost, and depreciation is computed using the straight-line method, net of estimated salvage values, over the estimated useful lives of the assets. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Depreciation expense related to property and equipment is recognized on a straight-line basis over the estimated useful lives of the assets. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing equipment, are capitalized and depreciated over the adjusted remaining useful lives of the assets. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in selling, general and administrative expenses. Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be realizable. When an evaluation is required, the estimated future undiscounted cash flows associated with the asset group are compared to the asset group’s carrying amount to determine if an impairment is necessary. The effect of any impairment involves expensing the difference between the fair value of the asset group and its carrying amount in the period incurred. Goodwill 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 recorded goodwill in connection with certain of its historical acquisitions of businesses. Upon acquisition, these businesses were either combined into one of Quanta’s existing operating companies or managed on a stand-alone basis as an individual operating company. Quanta has organized its individual operating companies into segments for goodwill disclosure purposes. Goodwill is required to be measured for impairment at the reporting unit level, which represents the operating segment level or one level below the operating segment level for which discrete financial information is available. Quanta has determined that its individual operating companies 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. The assessment can be performed by first completing a qualitative assessment on none, some, or all of Quanta’s reporting units. Quanta can also bypass the qualitative assessment for any reporting unit in any period and proceed directly to a quantitative impairment test, and then resume the qualitative assessment in any subsequent period. Qualitative indicators that may trigger the need for annual or interim quantitative impairment testing include, among other things, deterioration in macroeconomic conditions; declining financial performance; deterioration in the operational environment; 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. If Quanta believes that, as a result of its qualitative assessment, it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. The quantitative test involves comparing the fair value of such reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recorded as a reduction to goodwill with a corresponding charge to “Asset impairment charges” in the consolidated statements of operations. The income tax effect associated with an impairment of tax-deductible goodwill is also considered in the measurement of the goodwill impairment. A goodwill impairment for any reporting unit is limited to the total amount of goodwill allocated to such reporting unit. Quanta generally determines the fair value of its reporting units using a weighted combination of the income approach (discounted cash flow method) and market multiple valuation techniques (market guideline transaction method and market guideline public company method), with greater weight placed on the discounted cash flow method because management believes this method results in the most appropriate calculation of fair value and reflects an expectation of market value as determined by a “held and used” model. Under the discounted cash flow method, Quanta determines fair value based on the estimated future cash flows for each reporting unit, discounted to present value using a risk-adjusted industry weighted average cost of capital, which reflects the overall level of inherent risk for each reporting unit and the rate of return an outside investor would expect to earn. Cash flow projections are derived from budgeted amounts (typically a one-year model) and subsequent period cash flows are developed for each reporting unit using growth rates that management believes are reasonably likely to occur. A terminal value is derived from a multiple of the reporting unit’s earnings before interest, taxes, depreciation and amortization (EBITDA). The EBITDA multiples for each reporting unit are based on observed purchase transactions for similar businesses adjusted for size, volatility and risk. Under the market guideline transaction and market guideline public company methods, Quanta determines the estimated fair value for each of its reporting units by applying transaction multiples and public company multiples, respectively, to each reporting unit’s projected and historical EBITDA average. The transaction multiples are based on observed purchase transactions for similar businesses adjusted for size, volatility and risk. The public company multiples are based on peer group multiples adjusted for size, volatility and risk. For the market guideline public company method, Quanta adds a reasonable control premium, which is estimated as the premium that would be appropriate to convert the reporting unit value to a controlling interest basis. Other Intangible Assets 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 fair value of customer relationships is estimated as of the date a business is acquired based on the value-in-use concept utilizing the income approach, specifically the multi-period excess earnings method. This method discounts to present value the projected cash flows attributable to the customer relationships, with consideration given to customer contract renewals and estimated customer attrition rates. Quanta values backlog for acquired businesses as of the acquisition date based upon the contractual nature of the backlog within each service line, discounted to present value. The values of trade names and curriculum are estimated using the relief-from-royalty method of the income approach, which is based on the assumption that in lieu of ownership, a company would be willing to pay a royalty for use of the trade name or curriculum. The value of a non-compete agreement is estimated based on the difference between the present value of the prospective cash flows with the agreement in place and the present value of the prospective cash flows without the agreement in place. The value of the engineering license is based on cash paid to acquire the asset. Quanta amortizes the intangible assets that are subject to amortization based upon the estimated consumption of their economic benefits, or on a straight-line basis if the pattern of economic benefit cannot otherwise be reliably estimated. Intangible assets are reviewed for impairment and tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For instance, a significant change in business climate or a loss of a significant customer, among other things, may trigger the need for impairment testing of intangible assets. An impairment loss is recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. Leases Lease liabilities are recognized as the present value of the future minimum lease payments over the lease term as of the commencement date. Lease assets are recognized as the present value of future minimum lease payments over the lease term as of the commencement date, plus any initial direct costs incurred and lease payments made, less any lease incentives received. Quanta determines if an arrangement contains a lease at inception. If an arrangement is considered a lease, Quanta determines at the commencement date whether the lease is an operating or finance lease. Finance leases are leases that meet any of the following criteria: the lease transfers ownership of the underlying asset at the end of the lease term; the lessee is reasonably certain to exercise an option to purchase the underlying asset; the lease term is for the major part of the remaining economic life of the underlying asset (except when the commencement date falls at or near the end of such economic life); the present value of the sum of the lease payments and any additional residual value guarantee by the lessee equals or exceeds substantially all of the fair value of the underlying asset; or the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. A lease that does not meet any of these criteria is considered an operating lease. After the commencement date, lease cost for an operating lease is recognized over the remaining lease term on a straight-line basis, while lease cost for a finance lease is based on the depreciation of the lease asset and interest on the lease liability. The terms of Quanta’s lease arrangements vary, and certain leases include one or more of the following: renewal option(s), a cancellation option, a residual value guarantee, a purchase option or an escalation clause. An option to extend or terminate a lease is accounted for when assessing a lease term when it is reasonably certain that Quanta will exercise such option. Quanta has made a policy election to classify leases with an initial lease term of 12 months or less as short-term leases, and these leases are not recorded in the accompanying consolidated balance sheets unless the lease contains a purchase option that is reasonably certain to be exercised. Lease cost related to short-term leases is recognized on a straight-line basis over the lease term. Determinations with respect to lease term (including any extension thereof), discount rate, variable lease cost and future minimum lease payments require the use of judgment based on the facts and circumstances related to each lease. Quanta considers various factors, including economic incentives and penalties and business need, to determine the likelihood that a renewal option will be exercised. Unless a renewal option is reasonably certain to be exercised, which is typically at Quanta’s sole discretion, the initial non-cancelable lease term is used. Quanta generally uses its incremental borrowing rates to determine the present value of future minimum lease payments. Investments in Affiliates and Other In the normal course of business, Quanta enters into various types of investment arrangements, each having unique terms and conditions. These investments may include equity interests held by Quanta in business entities, including general or limited partnerships, contractual joint ventures, or other forms of equity or profit participation. These investments may also include Quanta’s participation in different financing structures, such as the extension of loans to project-specific entities, the acquisition of convertible notes issued by project specific entities, or other strategic financing arrangements. Quanta also enters into strategic partnerships with customers and infrastructure investors to provide fully integrated infrastructure solutions on certain projects, including planning and feasibility analyses, engineering, design, procurement, construction and project operation and maintenance. These projects include public-private partnerships and concessions, along with private infrastructure projects such as build, own, operate (and in some cases transfer) and build-to-suit arrangements. Quanta determines whether investments involve a variable interest entity (VIE) based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if Quanta is the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb significant losses of, or the right to receive significant benefits from, the VIE. When Quanta is deemed to be the primary beneficiary, the VIE is consolidated and the other party’s equity interest in the VIE is accounted for as a non-controlling interest. In cases where Quanta determines that it has an undivided interest in the assets, liabilities, revenues and profits of an unincorporated VIE (e.g., a general partnership interest), such amounts are consolidated on a basis proportional to Quanta’s ownership interest in the unincorporated entity. Investments in entities of which Quanta is not the primary beneficiary, but over which Quanta has the ability to exercise significant influence, are accounted for using the equity method of accounting. Equity method investments are carried at original cost adjusted for Quanta’s proportionate share of the investees’ income, losses and distributions. Quanta’s share of net income or losses of these investments is included within operating income in the accompanying 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, net” below operating income in the accompanying consolidated statements of operations. Equity method investments are reviewed for impairment by assessing whether there has been a decline in the fair value of the investment below the carrying amount and whether any such decline is other-than-temporary. In making this determination, factors such as the ability to recover the carrying amount of the investment and the inability of the investee to sustain its earnings capacity are evaluated in determining whether a loss in value should be recognized. Any impairment losses are included in “Other income, net” in the accompanying consolidated statement of operations. 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, net” in the accompanying consolidated statements of operations. Income Taxes Quanta follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded based on future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the underlying assets or liabilities are recovered or settled. Quanta regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain, including in connection with changes in tax laws. The estimation of required valuation allowances includes estimates of future taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Quanta considers projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income differs from these estimates, Quanta may not realize deferred tax assets to the extent estimated. Quanta records reserves for income taxes related to certain tax positions when management considers it more likely than not that additional taxes may be due in excess of amounts reflected on income tax returns filed. When recording these reserves, Quanta assumes that taxing authorities have full knowledge of the position and all relevant facts. Quanta continually reviews exposure to additional tax obligations, and as further information is known or events occur, changes in tax reserves may be recorded. Quanta adjusts its tax contingencies accrual and income tax provision in the period in which matters are effectively settled with tax authorities at amounts different from our established accrual, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and included in the provision for income taxes. U.S. federal and state and foreign income tax laws and regulations are voluminous and often ambiguous. As such, Quanta is required to make many subjective assumptions and judgments regarding its tax positions that could materially affect amounts recognized in future consolidated balance sheets, statements of operations and statements of comprehensive income. Earnings Per Share Basic and diluted earnings per share attributable to common stock are computed using the weighted average number of shares of common stock outstanding during the applicable period. Additionally, unvested stock-based awards that contain non-forfeitable rights to dividends or dividend equivalents (participating securities) have been included in the calculation of basic and diluted earnings per share attributable to common stock for the portion of the periods that the awards were outstanding. 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. 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 indirectly through its wholly-owned captive insurance company, which reimburses claims up to the amount of the applicable deductible amount of its third-party insurance programs. In connection with Quanta’s casualty insurance programs, Quanta is required to issue letters of credit to secure its obligations. 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 maintains 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. Losses under all of these insurance programs are accrued based upon Quanta’s estimate of the ultimate liability for claims reported and an estimate of claims incurred but not reported, with assistance from third-party actuaries. These insurance liabilities are difficult to assess and estimate due to unknown factors, including the severity of an injury, the extent of damage, the determination of Quanta’s liability in proportion to other parties and the number of incidents not reported. The accruals are based upon known facts and historical trends, and management believes such accruals are adequate. Collective Bargaining Agreements and Multiemployer Pension Plans Certain of Quanta’s operating companies are parties to collective bargaining agreements with unions that represent certain of their employees. The collective bargaining agreements expire at various times and have typically been renegotiated and renewed on terms similar to those in the expiring agreements. The agreements require the operating companies to pay specified wages, provide certain benefits to union employees and contribute certain amounts to multiemployer pension plans and employee benefit trusts pursuant to specified rates. Quanta’s multiemployer pension plan contribution rates generally are made to the plans on a “pay-as-you-go” basis based on its union employee payrolls. The location and number of union employees that Quanta employs at any given time and the plans in which they may participate vary depending on Quanta’s need for union resources in connection with its ongoing projects. Therefore, Quanta is unable to accurately predict its union employee payroll and the resulting multiemployer pension plan contribution obligations for future periods. Stock-Based Compensation Quanta recognizes compensation expense for restricted stock units (RSUs) and performance stock units (PSUs) to be settled in common stock based on the fair value of the awards, net of estimated forfeitures. The fair value of RSU awards is determined based on the number of units granted and the closing price of Quanta’s common stock on the date of grant. The grant date fair value of the PSUs is determined as follows: (i) for the portion of the awards based on company performance metrics, by multiplying the number of units granted by the closing price of Quanta’s common stock on the date of grant and (ii) for the portion of the awards based on relative total shareholder return compared to a defined peer group, by utilizing a Monte Carlo simulation valuation methodology. An estimate of future forfeitures, based on historical data, is also utilized to determine compensation expense for the period, and these forfeiture estimates are subject to change and may impact the value that will ultimately be recognized as compensation expense. The resulting compensation expense for PSU and time-based RSU awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period, and the resulting compensation expense for performance-based RSU awards is recognized using the graded vesting method over the requisite service period. The compensation expense related to outstanding PSUs can also vary from period to period based on changes in forecasted achievement of established performance goals and the total number of shares of common stock that Quanta anticipates will be issued upon vesting of such PSUs. Payments made by Quanta to satisfy employee tax withholding obligations associated with awards settled in common stock are classified as financing cash flows. Compensation expense associated with liability-based awards, such as RSUs that are expected to or may settle in cash, is recognized based on a remeasurement of the fair value of the award at the end of each reporting period. Upon settlement, the holders receive for each RSU an amount in cash equal to the fair market value of one share of Quanta common stock on the settlement date, as specified in the applicable award agreement. For additional information on Quanta’s RSU and PSU awards, see Note 14. Functional Currency and Translation of Financial Statements The U.S. dollar is the functional currency for the majority of Quanta’s operations, which are primarily located within the United States. The functional currency for Quanta’s foreign operations, which are primarily located in Canada and Australia, is typically the currency of the country where the foreign operating company is located and transacts the majority of its activities, including billings, financing, payroll and other expenditures. When preparing its consolidated financial statements, Quanta translates the financial statements of its foreign operating companies from their functional currency into U.S. dollars. Statements of operations, comprehensive income and cash flows are translated at average monthly rates, while balance sheets are translated at month-end exchange rates. The translation of the balance sheet results in translation gains or losses that are included as a separate component of equity under “Accumulated other comprehensive income (loss).” Gains and losses arising from transactions not denominated in functional currencies are included within “Other income, net” in the accompanying consolidated statements of operations. Comprehensive Income Components of comprehensive income include all changes in equity during a period, except those resulting from changes in Quanta’s capital-related accounts. Quanta records other comprehensive income (loss) for foreign currency translation adjustments related to its foreign operations and for other revenues, expenses, gains and losses that are included in comprehensive income but excluded from net income. Litigation Costs and Reserves Quanta records reserves when the likelihood of incurring a loss is probable and the amount of loss can be reasonably estimated. Costs incurred for litigation are expensed as incurred. See Note 16 for additional information related to legal proceedings and other contingencies. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 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 Financial Accounting Standards Board (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 has not had a material impact on Quanta’s consolidated financial statements during 2021. In January 2020, FASB issued an update that clarified the applicable guidance for measurement of the fair value of equity and cost method investments when there is a change in the level of ownership or degree of influence. Quanta adopted this update effective January 1, 2021 and will prospectively apply this update. New Accounting Pronouncement Not Yet Adopted |
Revenue Recognition and Related
Revenue Recognition and Related Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Related Balance Sheet Accounts | REVENUE RECOGNITION AND RELATED BALANCE SHEET ACCOUNTS: Contracts Quanta’s services include the design, new construction, upgrade and repair and maintenance of infrastructure primarily in the utility, renewable energy, communications and pipeline and energy industries. These 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. All of Quanta’s revenues are recognized from contracts with its customers. In addition to the considerations described below, revenue is not recognized unless collectability under the contract is considered probable, the contract has commercial substance and the contract has been approved. Additionally, the contract must contain payment terms, as well as the rights and commitments of both parties. Performance Obligations A performance obligation is a promise in a contract with a customer to transfer a distinct good or service. Most of Quanta’s contracts are considered to have a single performance obligation whereby Quanta is required to integrate complex activities and equipment into a deliverable for a customer. For contracts with multiple performance obligations, Quanta allocates a portion of the total transaction price to each performance obligation using its best estimate of the standalone selling price of the distinct good or service associated with each performance obligation. Standalone selling price is estimated using the expected costs plus a margin. At December 31, 2021 and 2020, the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations was approximately $5.90 billion and $3.99 billion, with 81.8% and 71.2% 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. Recognition of Revenue Upon Satisfaction of Performance Obligations A transaction price is determined for each contract, and that amount is allocated to each performance obligation within the contract and recognized as revenue when, or as, the performance obligation is satisfied. Quanta recognizes certain revenue over time as it performs its obligations because there is a continuous transfer of control of the deliverable to the customer. Under unit-price contracts with an insignificant amount of partially completed units, Quanta recognizes revenue as units are completed based on contractual pricing amounts. Under unit-price contracts with more than an insignificant amount of partially completed units and fixed price contracts, Quanta recognizes revenues as performance obligations are satisfied over time, with the percentage completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation. Under cost-plus contracts, Quanta recognizes revenue on an input basis, as labor hours are incurred, materials are utilized and services are performed. Under contracts where Quanta has a right to consideration in an amount that directly corresponds to the value of completed performance, Quanta recognizes revenue in such amount and does not include such performance as a remaining performance obligation. Also, contract consideration is not adjusted for a significant financing component if payment is expected to be collected less than one year from when the services are performed. Contract costs include all direct materials, labor and subcontract costs and indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. The majority of the materials associated with Quanta’s work are owner-furnished, and therefore not included in contract revenues and costs. Additionally, Quanta may incur incremental costs to obtain certain contracts, such as selling and marketing costs, bid and proposal costs, sales commissions, and legal fees or initial set-up or mobilization costs, certain of which can be capitalized. Such costs were not material during the years ended December 31, 2021, 2020 and 2019. Contract Estimates Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors, including unforeseen or changed circumstances not included in Quanta’s cost estimates or covered by its contracts. The estimating process is based on the professional knowledge and experience of Quanta’s project estimators, project managers and finance professionals. 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 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. These factors, along with other risks inherent in performing services under fixed price contracts, are routinely evaluated by management. Any changes in estimates could result in changes to profitability or losses associated with the related performance obligations. For example, estimated costs for a performance obligation may increase from an original estimate, and contractual provisions may not allow for adequate compensation or reimbursement for such additional costs. Changes in estimated revenues, costs and profit are recorded in the period they are determined to be probable and can be reasonably estimated. Contract losses are recognized in full when they are determined to be probable and can be reasonably estimated. Changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. Quanta determines the probability that costs associated with change orders and claims will be recovered based on, among other things, contractual entitlement, past practices with the customer, specific discussions or preliminary negotiations with the customer and verbal approvals by the customer. Quanta recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reliably estimated. Most of Quanta’s change orders are for services that are not distinct from an existing contract and are accounted for as part of an existing contract on a cumulative catch-up basis. Quanta accounts for a change order as a separate contract if the additional goods or services are distinct from and increase the scope of the contract, and the price of the contract increases by an amount commensurate to Quanta’s standalone selling price for the additional goods or services. As of December 31, 2021 and 2020, Quanta had recognized revenues of $367.8 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, administrative requirements and labor issues on two transmission projects in Canada that negatively impacted productivity, which were primarily attributable to the COIVD-19 pandemic. The productivity and delays were significantly impacted due to governmental requirements and worksite restrictions associated with COVID-19. 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 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. Variable consideration amounts, including performance incentives, early pay discounts and penalties, may also cause changes in contract estimates. The amount of variable consideration is estimated based on the most likely amount that is deemed probable of realization. Contract consideration is adjusted for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur once the uncertainty related to the variable consideration is resolved. Changes in 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. Changes in Estimates Revenues were positively impacted by $130.2 million, $27.0 million and $60.2 million during the years ended December 31, 2021, 2020 and 2019 as a result of changes in estimates associated with performance obligations on fixed price contracts partially satisfied prior to December 31, 2020, 2019 and 2018. Operating results for the year ended December 31, 2021, were favorably impacted by $111.5 million or 5.7% of gross profit as a result of aggregate changes in contract estimates related to projects that were in progress as of year ended 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 years ended December 31, 2020 and 2019 were impacted by less than 5% as a result of aggregate changes in contract estimates related to projects that were in progress as of the corresponding prior year end. However, certain individual projects were materially impacted by changes to estimated contract revenues and/or project costs during these periods. During the year ended December 31, 2020, revenues and gross profit were favorably impacted by $20.8 million as a result of successful execution through project risks and close-out activities on a large transmission project in the United States. Revenues and gross profit were also favorably impacted as a result of successful execution through project risks and close-out activities on certain larger pipeline projects in the United States. The favorable impact related to these larger pipeline projects was offset by increased costs on two larger pipeline projects in Canada that experienced severe weather conditions during the year ended December 31, 2020, both of which were substantially complete as of December 31, 2020. With respect to all of these large pipeline projects, the aggregate net negative impact on gross profit related to work performed in prior periods was $10.0 million during the year ended December 31, 2020. Additionally, during the year ended December 31, 2020, Quanta was in the process of exiting its Latin American operations. These operations have been 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. The decision to accelerate these exit activities materially changed certain contract estimates as of December 31, 2019 due to significant reductions in the volume of work to be performed, as well as lower productivity than expected. The majority of the impacts of these developments were not recoverable from the customers. These factors, as well as political and regulatory uncertainties and other customer challenges, resulted in changes in estimates on several projects and negatively impacted gross profit related to work performed in prior periods by $35.5 million in aggregate during year ended December 31, 2020. As of December 31, 2020, substantially all of the projects in Latin America that were active at the beginning of 2020 had been completed. During the year ended December 31, 2019, Quanta successfully completed an electric transmission project in Canada ahead of schedule during the three months ended March 31, 2019, which resulted in a reduction in estimated project costs and positively impacted gross profit related to work performed in prior periods by $30.1 million. Quanta also successfully executed through project risks on a larger pipeline transmission project, which resulted in a reduction of estimated project costs and positively impacted gross profit in 2019 related to work performed in prior periods by $22.9 million. Quanta also settled claims related to a larger natural gas transmission project that experienced losses in 2018, which increased revenues and gross profit in 2019 related to work performed in prior periods by $16.2 million. Additionally, Quanta experienced rework and start-up delays on a processing facility construction project, which resulted in additional estimated project costs and liquidated damages payable to the customer and negatively impacted gross profit related to work performed in prior periods by $29.4 million. As of December 31, 2021, this project was complete. Quanta also experienced unfavorable weather and labor-related impacts, as well as a project scope reduction, on an electric transmission project in southern California, which resulted in an increase in estimated project costs and a reduction in expected project earnings. These changes negatively impacted gross profit related to work performed in prior periods by $21.1 million. As of December 31, 2021, this project was approximately 99% complete. Additionally, the changes in contract estimates include the negative impact of the correction of $9.6 million of prior period errors related to the determination of total estimated project costs and the resulting revenue recognized on a large telecommunications project in Peru that was terminated during 2019. Revenues by Category The following tables present Quanta’s revenue disaggregated by geographic location, as determined by the job location, and by contract type (in thousands): Year Ended December 31, 2021 2020 2019 By primary geographic location: United States $ 11,068,493 85.3 % $ 9,618,951 85.8 % $ 10,190,684 84.0 % Canada 1,557,117 12.0 % 1,252,365 11.2 % 1,436,720 11.9 % Australia 221,038 1.7 % 200,664 1.8 % 187,915 1.6 % Others 133,565 1.0 % 130,692 1.2 % 296,834 2.5 % Total revenues $ 12,980,213 100.0 % $ 11,202,672 100.0 % $ 12,112,153 100.0 % Year Ended December 31, 2021 2020 2019 By contract type: Unit-price contracts $ 5,029,100 38.7 % $ 4,172,363 37.2 % $ 4,193,295 34.6 % Cost-plus contracts 3,102,075 23.9 % 2,649,770 23.7 % 3,304,161 27.3 % Fixed price contracts 4,849,038 37.4 % 4,380,539 39.1 % 4,614,697 38.1 % Total revenues $ 12,980,213 100.0 % $ 11,202,672 100.0 % $ 12,112,153 100.0 % As described above, under unit-price contracts with more than an insignificant amount of partially completed units and fixed price contracts, revenue is recognized as performance obligations are satisfied over time, with the percentage completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation. Approximately 45.9%, 47.9% and 50.0% of Quanta’s revenues recognized during the years ended December 31, 2021, 2020 and 2019 were associated with this revenue recognition method. Contract Assets and Liabilities With respect to Quanta’s contracts, interim payments are typically received as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. As a result, under fixed price contracts, the timing of revenue recognition and contract billings results in contract assets and contract liabilities. Contract assets represent revenues recognized in excess of amounts billed for fixed price contracts and are current assets that are transferred to accounts receivable when billed or the billing rights become unconditional. Contract assets are not considered a significant financing component as they are intended to protect the customer in the event Quanta does not perform on its obligations under the contract. Conversely, contract liabilities represent billings in excess of revenues recognized for fixed price contracts. These arise under certain contracts that allow for upfront payments from the customer or contain contractual billing milestones, which result in billings that exceed the amount of revenues recognized for certain periods. Contract liabilities are current liabilities and are not considered to have a significant financing component, as they are used to meet working capital requirements that are generally higher in the early stages of a contract and are intended to protect Quanta from the other party failing to meet its obligations under the contract. Contract assets and liabilities are recorded on a performance obligation basis at the end of each reporting period. Contract assets and liabilities consisted of the following (in thousands): December 31, 2021 December 31, 2020 December 31, 2019 Contract assets $ 803,453 $ 453,832 $ 601,268 Contract liabilities $ 802,872 $ 528,864 $ 606,146 As referenced previously, 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; 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 December 31, 2021 was primarily due to increased working capital requirements related to progress on two large transmission projects in Canada and the timing of billings, as well as the recognition of certain change orders and claims for such projects. Both of the projects were negatively impacted by delays and labor issues 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. The decrease in contract assets from December 31, 2019 to December 31, 2020 was partially due to a decline in revenues related to contracts for which revenues are recognized over time. Additionally, Quanta’s exit from and the close out of projects in Latin America also contributed to the reduction. The increase in contract liabilities from December 31, 2020 to December 31, 2021 was primarily due to the acquisition of Blattner, which had $227.0 million of contract liabilities as of the date of acquisition. During the years ended December 31, 2021, 2020 and 2019, Quanta recognized revenue of approximately $433.3 million, $491.5 million and $370.0 million related to contract liabilities outstanding at December 31, 2020, 2019 and 2018. Accounts Receivable and Allowance for Credit Losses Quanta adopted the new accounting standard for measuring credit losses effective January 1, 2020 utilizing the transition method that allows recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Quanta’s financial results for reporting periods beginning on or after January 1, 2020 are presented under the new standard, while financial results for prior periods continue to be reported in accordance with the prior standard and Quanta’s historical accounting policy. The net cumulative effect due to the adoption of the new standard was a $3.8 million reduction to retained earnings as of January 1, 2020, which represented a $5.1 million increase to allowance for credit losses, net of $1.3 million in deferred income taxes. The adjustment was based on an estimate of expected lifetime credit losses for financial instruments, primarily accounts receivable and contract assets. Although the adoption of the new standard did not have a material impact on Quanta’s consolidated financial statements at the date of adoption, expected credit losses could change as a result of changes in credit loss experience, changes to specific risk characteristics of Quanta’s portfolio of financial assets or changes to management’s expectations of future economic conditions that affect the collectability of Quanta’s financial assets. The assessment of the allowance for credit losses involves certain judgments and estimates. Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Expected credit losses are estimated by evaluating trends in historical write-off experience and applying historical loss ratios to pools of financial assets with similar risk characteristics. Quanta has determined that it has one pool for the purpose of calculating its historical credit loss experience. Quanta’s historical loss ratio and its determination of risk pool, which are used to calculate expected credit losses, may be adjusted for changes in customer credit concentrations within its portfolio of financial assets, its customers’ ability to pay, and other considerations, such as economic and market changes, changes to 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 uncertainties and challenges in the energy market and overall economy caused by the COVID-19 pandemic. Additional allowance for credit losses is established for financial asset balances with specific customers where collectability has been determined to be improbable based on customer specific facts and circumstances. 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. Activity in Quanta’s allowance for credit losses consisted of the following (in thousands): Year Ended December 31, 2021 2020 2019 Balance at beginning of year $ 16,546 $ 9,398 $ 5,839 Cumulative effect of adoption of new credit loss standard — 5,067 — Provision for credit losses 34,890 3,656 11,249 Direct write-offs charged against the allowance (1,687) (1,575) (7,690) Balance at end of year $ 49,749 $ 16,546 $ 9,398 Provision for credit losses is included in “Selling, general and administrative expenses” in the consolidated statements of operations. The majority of the increase in provision for credit losses during 2021 was related to Limetree Bay Refining, LLC (Limetree Refining), a customer within Quanta’s Underground Utility and Infrastructure Solutions segment, that filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code, as amended (the Bankruptcy Code), in July 2021 after experiencing operational and financial difficulties and shutting down operations at its refinery. As of December 31, 2021, Quanta had $31.3 million of receivables for services performed and other costs related to Limetree Refining and $0.4 million of receivables outstanding from an affiliate, which have been fully reserved. 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 estimated amount of expected loss at that time. During the three months ended December 31, 2021, as a result of developments in the bankruptcy proceeding, including the sale of Limetree Refinery in January 2021 for substantially less than its secured debts, and negotiations regarding payment of the amounts owed by Limetree Terminals, Quanta recorded an additional provision for credit losses of $8.1 million with respect to these receivables based on the current estimated amount of expected loss, which assumes that Quanta will not collect any of the receivables outstanding at December 31, 2021. See Concentrations of Credit Risk in Note 16 for further discussion of the credit quality of certain other outstanding receivables due from customers that have experienced financial difficulties. 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 one year. Retainage balances with expected settlement dates within one year of December 31, 2021 and 2020 were $406.7 million and $306.3 million, which are included in “Accounts receivable.” Retainage balances as of December 31, 2021 and 2020 with expected settlement dates beyond one year were $93.9 million and $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 December 31, 2021, 2020 and 2019, unbilled receivables included in “Accounts receivable” were $679.0 million, $472.3 million and $524.3 million. The increase in unbilled receivables from December 31, 2020 to December 31, 2021 was primarily due to the ramp up of work and certain delays in billing related to certain large customers. 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 $51.8 million, $53.6 million and $33.2 million at December 31, 2021, 2020 and 2019. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION: Beginning with the three months ended December 31, 2021, Quanta reports results under three reportable segments: (1) Electric Power Infrastructure Solutions, (2) Renewable Energy Infrastructure Solutions and (3) Underground Utility and Infrastructure Solutions. The Renewable Energy Infrastructure Solutions segment was added primarily due to the acquisition of Blattner. In conjunction with this change, certain prior period amounts have been recast to conform to this new segment reporting structure. 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 companies in each of its end user markets. Quanta’s entrepreneurial business model allows multiple operating companies to serve the same or similar customers and to provide a range of services across end user markets. Quanta’s operating companies are organized into one of three reportable segments. Reportable segment information, including revenues and operating income by type of work, is gathered from each operating company for the purpose of evaluating segment performance in support of Quanta’s market strategies. Classification of operating company revenues by type of work for segment reporting purposes can require judgment on the part of management. Quanta’s operating companies 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, integrated operations and common administrative support for Quanta’s operating companies require that certain allocations be made to determine segment profitability, including allocations of corporate shared and indirect operating costs as well as general and administrative costs. Certain corporate costs are not allocated, including facility costs, acquisition and integration costs, non-cash stock-based compensation, amortization related to intangible assets, asset impairment related to goodwill and intangible assets and change in fair value of contingent consideration liabilities. Summarized financial information for Quanta’s reportable segments is presented in the following table (in thousands): Year Ended December 31, 2021 2020 2019 Revenues: Electric Power Infrastructure Solutions (1) $ 7,624,240 $ 6,468,192 $ 6,346,837 Renewable Energy Infrastructure Solutions 1,825,259 1,305,151 775,000 Underground Utility and Infrastructure Solutions 3,530,714 3,429,329 4,990,316 Consolidated revenues $ 12,980,213 $ 11,202,672 $ 12,112,153 Operating income (loss) : Electric Power Infrastructure Solutions (2)(3) $ 865,409 $ 648,405 $ 554,824 Renewable Energy Infrastructure Solutions 181,908 177,920 36,353 Underground Utility and Infrastructure Solutions 150,147 170,074 332,011 Corporate and non-allocated costs (533,943) (385,028) (368,314) Consolidated operating income $ 663,521 $ 611,371 $ 554,874 Depreciation: Electric Power Infrastructure Solutions $ 141,093 $ 112,663 $ 101,299 Renewable Energy Infrastructure Solutions 14,020 9,185 6,996 Underground Utility and Infrastructure Solutions 83,720 85,981 90,953 Corporate and non-allocated costs 16,696 17,427 18,859 Consolidated depreciation $ 255,529 $ 225,256 $ 218,107 ( 1 ) Includes $63.2 million related to Latin American operations for the year ended December 31, 2019, which included the reversal of $48.8 million of revenues in the year ended December 31, 2019 in connection with the terminated telecommunications project in Peru, a portion of which related to prior periods. (2) Includes $74.0 million and $85.7 million of operating losses related to Latin American operations for the years ended December 31, 2020 and 2019. Included in the Latin American operating loss for the year ended December 31, 2019 was a $79.2 million charge associated with the termination of the large telecommunications project in Peru, which included the $48.8 million decrease in revenues described above and a $30.4 million increase in cost of services. See Legal Proceedings — Peru Project Dispute in Note 16 for additional information on this matter. As of December 31, 2020, Quanta had substantially completed the exit of its operations in Latin America. (3) Includes equity in earnings of integral unconsolidated affiliates of $44.1 million and $11.3 million for the years ended December 31, 2021 and 2020. These affiliates are considered to be operationally integral to the operations of Quanta and 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 company level, include operating machinery, equipment and vehicles, office equipment, buildings and leasehold improvements, and certain fixed assets 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 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONS: The results of operations of the acquired businesses have been included in Quanta’s consolidated financial statements since the respective acquisition dates. On October 13, 2021, Quanta completed the acquisition of Blattner, a large and leading utility-scale renewable energy infrastructure solutions provider that is located in and primarily operates in North America. Consideration for this acquisition was $2.37 billion paid or payable in cash (subject to certain adjustments) and 3,326,955 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 the acquisition remains subject to certain post-closing adjustments, including with respect to net working capital (inclusive of cash) and certain assumed liabilities. Additionally, the former owners of Blattner are eligible to receive potential payment of up to $300.0 million of contingent consideration, payable to the extent the acquired business achieves certain financial performance targets over a three-year period beginning in January 2022. Based on the estimated fair value of the contingent consideration, Quanta recorded a $125.6 million liability as of the date of the acquisition. Contingent consideration is earned based on performance during each year of the three-year performance period, and amounts earned are payable in cash after the end of the applicable performance year. Quanta may defer payment of earned contingent consideration amounts, at its sole discretion, until after the end of the entire three-year performance period; however, any deferred amounts will accrue interest at five percent per annum until paid. Blattner’s results are included in the Renewable Energy Infrastructure Solutions segment. During the year ended December 31, 2021, Quanta also acquired the following businesses: three businesses located in the United States that provide electric power construction and related services; 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 that provides turnaround and catalyst change-out services to the refining and petrochemical industries primarily in the United States and Canada; a business located in Canada that provides front-end land services for infrastructure development projects in Canada and the United States; a business located in the United States that primarily provides horizontal directional drilling services; and a communications services business located in the United States. The aggregate consideration for these acquisitions was $328.8 million paid or payable in cash (subject to certain adjustments) and 187,093 shares of Quanta common stock, which had a fair value of $16.9 million as of the applicable acquisition dates. The results of the manufacturing business and the turnaround and catalyst change-out business are generally included in the Underground Utility and Infrastructure Solutions segment and the results of the remaining businesses are generally included in the Electric Power Infrastructure Solutions segment. 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 $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 industrial services business and the business specializing in construction and maintenance of pipelines and metering stations are generally included in the Underground Utility and Infrastructure Solutions segment and the results of the remaining businesses are generally included in the Electric Power Infrastructure Solutions segment. On August 30, 2019, Quanta acquired The Hallen Construction Co., Inc. (Hallen), an underground utility and infrastructure solutions business located in the United States that specializes in gas distribution and transmission services, and to a lesser extent, underground electric distribution and transmission services. During the year ended December 31, 2019, Quanta also acquired two specialty utility foundation and pole-setting contractors serving the southeast United States; an electric power specialty contracting business located in the United States that provides aerial power line and construction support services; a business located in the United States that provides technical training materials to electric utility workers; an electric power company specializing in project management and, to a lesser extent, water and wastewater projects located in the United States; and an electrical infrastructure solutions business located in Canada. The aggregate consideration for these acquisitions was $395.3 million paid or payable in cash, subject to certain adjustments, and 60,860 shares of Quanta common stock, which had a fair value of $1.8 million as of the respective acquisition date. A portion of the cash consideration in connection with the Hallen acquisition was placed in an escrow account, which, subject to certain conditions, could be utilized to reimburse Quanta for obligations associated with certain contingent liabilities assumed by Quanta in the transaction. See Legal Proceedings — Hallen Acquisition Assumed Liability in Note 16 for additional information related to these liabilities. The results of Hallen are generally included in the Underground Utility and Infrastructure Solutions segment and the results of the other acquired businesses are generally included in the Electric Power Infrastructure Solutions segment. The following table summarizes the aggregate consideration paid or payable as of December 31, 2021 for the acquisitions completed in 2021 and 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 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 during 2021, and further adjustments to the purchase price allocations may occur. As of December 31, 2021, the estimated fair values of the net assets acquired were preliminary, with possible updates primarily related to tax estimates, certain intangible assets and the finalization of closing working capital adjustments. 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 for acquisitions completed in the years shown (in thousands). 2021 Blattner All Others 2020 Consideration: Cash paid or payable $ 2,372,528 $ 328,846 $ 359,624 Value of Quanta common stock issued 345,422 16,922 57,119 Contingent consideration 125,632 — 2,250 Fair value of total consideration transferred or estimated to be transferred $ 2,843,582 $ 345,768 $ 418,993 Cash and cash equivalents $ 171,950 $ 9,910 $ 29,221 Accounts receivable 411,835 63,032 74,492 Contract assets 13,622 8,322 8,919 Other current assets 57,803 6,334 23,877 Property and equipment 179,530 71,735 143,277 Other assets 191 229 14 Identifiable intangible assets 1,425,000 105,128 96,826 Current maturities of long-term debt and short-term debt (2,304) — (3,307) Accounts payable and accrued liabilities (478,521) (28,662) (31,804) Contract liabilities (227,040) (384) (3,750) Deferred tax liabilities, net — (2,063) (3,178) Other long-term liabilities (7,764) — — Total identifiable net assets 1,544,302 233,581 334,587 Goodwill 1,299,280 112,187 84,406 Fair value of net assets acquired $ 2,843,582 $ 345,768 $ 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 2021, 2020 and 2019 strategically expanded Quanta’s domestic renewable energy infrastructure solutions, domestic and international electric power infrastructure solutions and communications service offerings, and domestic and international underground utility and infrastructure solutions, which Quanta believes contributes to the recognition of the goodwill. Approximately $1.4 billion, $72.6 million, and $82.1 million of goodwill is expected to be deductible for income tax purposes related to acquisitions completed in 2021, 2020 and 2019. The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in 2021 and 2020 as of the acquisition dates and the related weighted average amortization periods by type (in thousands, except for weighted average amortization periods, which are in years). 2021 Blattner All Other 2020 Estimated Fair Value Weighted Average Amortization Period in Years Estimated Fair Value Weighted Average Amortization Period in Years Estimated Fair Value Weighted Average Amortization Period in Years Customer relationships $ 1,045,000 7.0 $ 77,293 6.7 $ 81,154 6.1 Backlog 130,000 0.7 6,436 1.2 4,022 1.4 Trade names 250,000 15.0 5,698 14.9 7,654 14.4 Non-compete agreements — N/A 6,673 5.0 3,996 5.0 Patented rights, developed technology, and process certifications — N/A 9,028 3.5 — N/A Total intangible assets subject to amortization $ 1,425,000 7.8 $ 105,128 6.5 $ 96,826 6.5 The significant estimates used by management in determining the fair values 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 years ended December 31, 2021, 2020 and 2019 as of the respective acquisition dates: 2021 2020 Range Weighted Average Range Weighted Average Discount rates 18% to 26% 18% 19% to 25% 20% Customer attrition rates 8% to 30% 10% 10% to 43% 13% As described above, certain business acquisitions have contingent consideration liabilities associated with the transactions. Aggregate fair values of these outstanding contingent consideration liabilities and their classification in the accompanying consolidated balance sheets were as follows (in thousands): December 31, 2021 December 31, 2020 Accounts payable and accrued expenses $ 2,591 $ 3,466 Insurance and other non-current liabilities 140,482 7,503 Total contingent consideration liabilities $ 143,073 $ 10,969 The increase in contingent consideration liabilities from December 31, 2020 to December 31, 2021 was primarily due to the acquisition of Blattner. The majority of Quanta’s outstanding contingent consideration liabilities are subject to a maximum payment amount, which totaled $313.7 million as of December 31, 2021. Quanta’s aggregate contingent consideration liabilities can change due to additional business acquisitions, settlement of outstanding liabilities, changes in the fair value of amounts owed based on performance in post-acquisition periods and accretion in present value. These changes are reflected in “Change in fair value of contingent consideration liabilities” in the accompanying consolidated statements of operations. Quanta settled certain contingent consideration liabilities with $76.0 million of cash payments and the issuance of 4,277 shares of Quanta common stock during the year ended December 31, 2020. The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in 2021, 2020 and 2019, have been provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future. Future results may vary significantly from the results reflected in the following pro forma financial information because of future events and transactions, as well as other factors (in thousands, except per share amounts). Year Ended December 31, 2021 2020 2019 Revenues $ 15,503,994 $ 14,082,275 $ 12,844,508 Gross profit $ 2,511,503 $ 2,226,703 $ 1,761,317 Selling, general and administrative expenses $ (1,353,780) $ (1,208,909) $ (1,027,254) Amortization of intangible assets $ (311,208) $ (404,014) $ (95,185) Net income $ 624,506 $ 421,105 $ 434,593 Net income attributable to common stock $ 618,479 $ 414,742 $ 429,822 Earnings per share attributable to common stock: Basic $ 4.31 $ 2.85 $ 2.92 Diluted $ 4.18 $ 2.77 $ 2.89 The pro forma combined results of operations 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 historical results of the acquisitions completed in 2020 as if they occurred January 1, 2019 and the historical results of the acquisitions completed in 2019 as if they occurred January 1, 2018. These pro forma combined historical results were adjusted for the following: a reduction of interest and other financing expenses as a result of the repayment of outstanding indebtedness of the acquired businesses; an increase in interest and other financing expenses as a result of the cash consideration paid; an increase in amortization expense due to the 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; reclassifications to conform the acquired businesses’ presentation to Quanta’s accounting policies; and elimination of certain transaction costs incurred by one of the acquired businesses and directly related to the acquisition of the business by Quanta. The pro forma combined results of operations do not include any adjustments to eliminate the impact of acquisition-related costs incurred by Quanta 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. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS: Goodwill 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 recorded goodwill in connection with certain of its historical acquisitions of businesses. Upon acquisition, these businesses were either combined into one of Quanta’s existing operating companies or managed on a stand-alone basis as an individual operating company. As described in Note 5 above, beginning with the three months ended December 31, 2021, Quanta reports results under three reportable segments: (1) Electric Power Infrastructure Solutions, (2) Renewable Energy Infrastructure Solutions and (3) Underground Utility and Infrastructure Solutions. The Renewable Energy Infrastructure Solutions segment was added due to the acquisition of Blattner in the fourth quarter of 2021. In conjunction with this change, Quanta has reorganized its reporting of goodwill to align with the reportable segments. Goodwill was allocated to reporting units of operating companies based on estimated relative fair value of reporting units within each operating company. From time to time, the goodwill of a reporting unit may be reorganized into a different reportable segment if warranted due to fundamental changes in its predominant business. A summary of changes in Quanta’s goodwill by segment is as follows (in thousands): Electric Power Infrastructure Solutions Renewable Energy Infrastructure Solutions Segment Underground Utility and Infrastructure Solutions Total Balance at December 31, 2019: Goodwill $ 1,365,163 $ — $ 753,938 $ 2,119,101 Accumulated impairment — — (96,426) (96,426) 1,365,163 — 657,512 2,022,675 Goodwill related to acquisitions completed in 2020 79,889 — 6,308 86,197 Purchase price allocation adjustments 1,730 — 19 1,749 Foreign currency translation adjustments 2,992 — 7,401 10,393 Balance at December 31, 2020: Goodwill 1,449,774 — 768,868 2,218,642 Accumulated impairment — — (97,628) (97,628) 1,449,774 — 671,240 2,121,014 Goodwill related to acquisitions completed in 2021 100,121 1,299,280 12,066 1,411,467 Operating company reorganizations (161,912) 161,912 — — Purchase price allocation adjustments (1,791) — — (1,791) Foreign currency translation adjustments 1,226 — (3,030) (1,804) Balance at December 31, 2021: Goodwill 1,387,418 1,461,192 777,136 3,625,746 Accumulated impairment — — (96,860) (96,860) $ 1,387,418 $ 1,461,192 $ 680,276 $ 3,528,886 As of December 31, 2021 and 2020, the inherent assumptions and estimates used in developing future cash flows include projected revenues and margins, weighted average costs of capital, and transaction multiples. As of December 31, 2019, the inherent assumptions and estimates used in developing future cash flows and market valuations include projected revenues and margins, weighted average cost of capital and market multiples. The following table presents the significant estimates used by management in determining the fair values of Quanta’s reporting units for which a quantitative assessment was performed at December 31, 2021, 2020 and 2019: 2021 2020 2019 Years of cash flows before terminal value 5 years 5 years 5 years Weighted average cost of capital 12.0% 12.5% to 13.5% 12.5% Transaction multiple(s) applied to EBITDA 7.0 6.0 to 9.0 6 Guideline public company multiple(s) applied to EBITDA N/A N/A 6.5 Five-year revenue compounded annual growth rate(s) 9% to 26% -8% to 26% -9% Weighting of three methods: Discounted cash flows 100% 100% 70% Market multiple 0% 0% 15% Market capitalization 0% 0% 15% Quanta determined the fair value of its reporting units as of December 31, 2021 and 2020 using only the income approach. Quanta determined that the use of market multiple valuations applied to 2020 and 2021 financial results would not yield valuations reflective of fair market value due to the continued uncertainties and challenges in the energy market and overall economy caused by the COVID-19 pandemic. The range of compounded annual growth rates in 2021 and 2020 reflects Quanta’s expectation of a recovery over the five-year period used in the goodwill model. In connection with the annual goodwill assessment performed during the fourth quarter of 2021, Quanta assessed qualitative factors to determine whether it was necessary to perform a quantitative fair value impairment analysis and identified certain reporting units for which a quantitative goodwill impairment assessment was deemed appropriate based on financial performance indicators. The subsequent quantitative analysis indicated that the fair value of each reporting unit was in excess of its carrying amount. Accordingly, Quanta did not record any impairment charges related to goodwill during the fourth quarter of 2021. In connection with the 2020 and 2019 annual goodwill assessments, Quanta assessed qualitative factors to determine whether it was necessary to perform a quantitative fair value impairment analysis and also identified certain reporting units for which quantitative goodwill impairment assessments were deemed appropriate based on financial performance indicators. The subsequent quantitative analyses indicated that the fair values of the reporting units were in excess of their carrying amounts. Accordingly, Quanta did not record any impairment charges related to goodwill during the fourth quarters of 2020 or 2019. Although no goodwill impairment charges were recorded during the year ended December 31, 2021, the determination of a reporting unit’s fair value requires judgment and the use of significant estimates and assumptions. Quanta believes the estimates and assumptions used in its impairment assessments are reasonable and based on available market information obtained from relevant industry sources; however, variations in any of the assumptions could result in materially different calculations of fair value and impairment determinations. With respect to reporting units within Quanta’s Underground Utility and Infrastructure Solutions segment, the potential impact of uncertainties and challenges in the energy market and overall economy caused by the COVID-19 pandemic is unknown and depends on numerous factors, and therefore the negative impact on these reporting units could continue or increase in future periods. In particular, due to volatility in commodity prices and commodity production volumes over the past few years, the effect of which has been exacerbated by the COVID-19 pandemic, two Canadian pipeline-related businesses with aggregate goodwill and intangible asset balances totaling $76.7 million and $12.8 million as of December 31, 2021 have an increased risk of goodwill impairment in the near and medium term. Management considered the sensitivity of its fair value estimates to changes in certain valuation assumptions for these reporting units. After taking into account a 10% decrease in fair value, these reporting units would have fair values below their carrying amounts. Quanta will continue to monitor the impact of 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. Other Intangible Assets 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 uncertainties and challenges in the energy market and overall economy caused by the COVID-19 pandemic, Quanta assessed certain potential negative impacts related to its intangible assets, particularly intangible assets associated with reporting units within the Underground Utility and Infrastructure Solutions segment. Quanta concluded that such impact is not likely to result in intangible asset impairments, and therefore no intangible asset impairments were recognized during the year ended December 31, 2021. However, the full potential impact of the uncertainties and challenges in the energy market and overall economy caused by the COVID-19 pandemic is unknown and depends on numerous factors, and therefore the negative impact on certain of Quanta’s reporting units and related intangible assets could increase in future periods. Quanta will continue to monitor the impact of these events and should any of the reporting units suffer additional declines in actual or forecasted financial results, the risk of intangible asset impairment would increase. Quanta’s intangible assets and the remaining weighted average amortization periods related to its intangible assets subject to amortization were as follows (in thousands except for weighted average amortization periods, which are in years): As of December 31, 2021 As of December 31, 2020 Remaining Weighted Average Amortization Period in Years Intangible Accumulated Intangible Intangible Accumulated Intangible Customer relationships 6.4 $ 1,738,813 $ (379,417) $ 1,359,396 $ 616,875 $ (277,647) $ 339,228 Backlog 0.4 286,120 (192,140) 93,980 149,769 (145,476) 4,293 Trade names 14.5 357,103 (41,642) 315,461 101,533 (32,471) 69,062 Non-compete agreements 3.7 54,022 (41,409) 12,613 47,333 (36,973) 10,360 Patented rights, developed technology, and process certifications 3.0 31,520 (23,458) 8,062 22,486 (21,894) 592 Curriculum 6.4 13,100 (4,432) 8,668 12,233 (3,113) 9,120 Total intangible assets subject to amortization 7.4 2,480,678 (682,498) 1,798,180 950,229 (517,574) 432,655 Engineering license 3,000 — 3,000 3,000 — 3,000 Total intangible assets $ 2,483,678 $ (682,498) $ 1,801,180 $ 953,229 $ (517,574) $ 435,655 Amortization expense for intangible assets was $165.4 million, $76.7 million and $62.1 million for the years ended December 31, 2021, 2020 and 2019. The estimated future aggregate amortization expense of intangible assets subject to amortization as of December 31, 2021 is set forth below (in thousands): Year Ending December 31: 2022 $ 347,276 2023 246,919 2024 233,073 2025 218,532 2026 211,648 Thereafter 540,732 Total $ 1,798,180 |
Investments in Affiliates and O
Investments in Affiliates and Other Entities | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliates and Other Entities | INVESTMENTS IN AFFILIATES AND OTHER ENTITIES: As described in Note 2, in the normal course of business, Quanta enters into various types of investment arrangements, each having unique terms and conditions. The carrying values for Quanta’s unconsolidated equity method investments were $101.2 million and $44.9 million at December 31, 2021 and 2020 and are included in “Other assets, net” in the accompanying consolidated balance sheets. As of December 31, 2021, Quanta had receivables of $49.0 million and payables of $56.3 million from its integral unconsolidated affiliates. 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 $22.0 million, subject to certain adjustments. This investment is accounted for as an integral affiliate using the equity method of accounting. Included within the equity method investments described above is the carrying value of Quanta’s 50% equity interest in LUMA Energy, LLC (LUMA), which was $30.6 million and $10.9 million at December 31, 2021 and 2020. During the year ended December 31, 2021, Quanta received $17.5 million of cash related to its share of earnings from LUMA. During the three months ended June 30, 2020, the LUMA joint venture was selected for a 15-year operation and maintenance agreement to operate, maintain and modernize the approximately 18,000-mile electric transmission and distribution system in Puerto Rico. In June 2021, LUMA completed the steps necessary to transition operation and maintenance of the system from the owner to LUMA and entered into an interim services agreement. Once the owner emerges from its Title III debt restructuring process, the 15-year operation and maintenance period is scheduled to begin. During the interim services period, LUMA receives a fixed annual management fee, payable in monthly installments, and is reimbursed for costs and expenses. During the 15-year operation and maintenance period, LUMA will continue to be reimbursed for costs and expenses and receive a fixed annual management fee, but will also have the opportunity to receive additional annual performance-based incentive fees. LUMA has not assumed and will not assume ownership of the electric transmission and distribution system assets and is not responsible for operation of the power generation assets. Quanta’s ownership interest and participation in LUMA is accounted for as an equity method investment due to Quanta’s and its joint venture partner’s equal ownership of LUMA. LUMA is operationally integral to the operations of Quanta, and therefore Quanta’s share of LUMA’s net income or losses is reported within operating income in “Equity in earnings (losses) of integral unconsolidated affiliates.” During the year ended December 31, 2020, Quanta recognized impairment losses of $8.7 million related to two non-integral equity method investments, which were primarily due to the decline in commodity prices and production volumes during 2020. These impairment losses are included in “Other income, net” in the accompanying consolidated statement of operations for the year ended December 31, 2020. Quanta had a minority ownership interest in a limited partnership that was selected during 2014 to build, own and operate a new 500-kilometer electric transmission line and two 500 kV substations in Alberta, Canada and accounted for this interest as an equity-method investment. The limited partnership contracted with a Quanta subsidiary to perform the engineering, procurement and construction (EPC) services for the project, and the Quanta subsidiary recognized revenue and related cost of services as performance progressed on the project. However, due to Quanta’s ownership interest, a proportional amount of the EPC profit was deferred until the electric transmission line and related substations were constructed and ownership of the assets was deemed to be transferred to the third-party customer, which occurred in the three months ended March 31, 2019. The deferral of earnings and recognition of such earnings deferral were recorded as components of equity in earnings (losses) of non-integral unconsolidated affiliates, which is included in “Other income, net” in the accompanying consolidated statements of operations. During the three months ended March 31, 2019, deferred earnings of $60.3 million were recognized, the majority of which was attributable to profit earned and deferred in the years ended December 31, 2018 and 2017. During the three months ended December 31, 2019, Quanta sold its minority ownership interest in the limited partnership and recognized a gain of $13.0 million related to the sale. The gain was recorded in equity in earnings (losses) of unconsolidated affiliates, which is included in “Other income, net” in the accompanying 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 December 31, 2021 and 2020, and these amounts are included in “Other assets, net” in the accompanying 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 December 31, 2021. However, in October 2021, the broadband technology provider entered into an agreement and plan of merger with a special purpose acquisition company. Pursuant to the terms of this transaction, which is expected to be consummated during the first half of 2022, the broadband technology provider will become a publicly traded company, and Quanta’s current preferred equity interest would become an approximate five percent common equity interest, without preferential liquidation rights, in the publicly traded company. Quanta would then begin to remeasure this investment at fair value, and the investment balance will be marked to the market price of its stock investment, with changes in value recorded within “Other income, net” on its consolidated statements of operations. Additionally, any shares of common equity held by Quanta in the publicly traded company are expected to be subject to a lock-up period that restricts the transfer of such shares for 180 days after closing of the transaction. During the year ended December 31, 2021, Quanta also purchased, through its wholly-owned captive insurance company, certain real property, including associated buildings and facilities, that is being 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 $23.3 million is included in “Other assets, net” in the accompanying consolidated balance sheet at December 31, 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 in Australia, 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. This impairment loss is included in “Other income, net” in the accompanying consolidated statement of operations for the year ended December 31, 2020. |
Per Share Information
Per Share Information | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2021 2020 2019 Amounts attributable to common stock: Net income attributable to common stock $ 485,956 $ 445,596 $ 402,044 Weighted average shares: Weighted average shares outstanding for basic earnings per share attributable to common stock 140,824 141,380 145,710 Effect of dilutive unvested non-participating stock-based awards 4,549 3,867 1,824 Weighted average shares outstanding for diluted earnings per share attributable to common stock 145,373 145,247 147,534 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. Additionally, unvested stock-based awards that contain non-forfeitable rights to dividends or dividend equivalents (participating securities) have been included in the calculation of basic and diluted earnings per share attributable to common stock for the portion of the periods that the awards were outstanding. Weighted average shares outstanding for basic and diluted earnings per share attributable to common stock included 0.6 million, 1.6 million and 2.8 million weighted average participating securities for the years ended December 31, 2021, 2020 and 2019. 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 | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Obligations | DEBT OBLIGATIONS: Quanta’s long-term debt obligations consisted of the following (in thousands): December 31, 2021 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 1,199,841 148,508 Other long-term debt 64,800 46,981 Finance leases 2,546 2,228 Unamortized discount and debt issuance costs related to senior notes and term loan (29,295) (12,892) Total long-term debt obligations 3,737,892 1,184,825 Less — Current maturities of long-term debt 13,418 10,531 Total long-term debt obligations, net of current maturities $ 3,724,474 $ 1,174,294 Quanta’s current maturities of long-term debt and short-term debt consisted of the following (in thousands): December 31, 2021 2020 Short-term debt $ 15,748 $ 4,233 Current maturities of long-term debt 13,418 10,531 Current maturities of long-term debt and short-term debt $ 29,166 $ 14,764 As of December 31, 2021, principal payments required to be made during the next five years are set forth in the table below. The payments required under finance leases are provided in Note 11. 2022 $ 12,267 2023 $ 30,489 2024 $ 528,235 2025 $ 45,178 2026 $ 1,130,559 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, and used such proceeds, together with cash on hand, to voluntarily prepay the $1.21 billion of term loans then-outstanding under Quanta’s credit agreement for its senior credit facility. 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 The credit agreement for Quanta’s senior credit facility (the credit agreement) provides for a $750.0 million term loan facility, which was utilized for the purpose of financing Quanta’s acquisition of Blattner, and aggregate revolving commitments of $2.64 billion, with a maturity date of October 8, 2026. Subject to the conditions specified in the credit agreement, Quanta has the option to increase the capacity of the credit facility, in the form of an increase in the revolving commitments, term loans or a combination thereof, from time to time, upon receipt of additional commitments from new or existing lenders by up to an additional (i) $400.0 million plus (ii) additional amounts so long as the Incremental Leverage Ratio Requirement (as defined in the credit agreement) is satisfied at the time of such increase. The Incremental Leverage Ratio Requirement requires, among other things, after giving pro forma effect to such increase and the use of proceeds therefrom, compliance with the credit agreement’s financial covenants as of the most recent fiscal quarter end for which financial statements were required to be delivered. The credit agreement contains certain covenants, including, as of the end of any fiscal quarter of Quanta, (i) a maximum Consolidated Leverage Ratio of 3.5 to 1.0 (except that in connection with certain permitted acquisitions in excess of $200.0 million, 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 of 3.0 to 1.0. As of December 31, 2021, Quanta was in compliance with all of the financial covenants under the credit agreement. The Consolidated Leverage Ratio is the ratio of Quanta’s total funded debt to Consolidated EBITDA (as defined in the 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 credit agreement) in excess of $25.0 million. Consolidated Interest Coverage Ratio is the ratio of (i) Consolidated EBIT (as defined in the credit agreement) for the four fiscal quarters most recently ended to (ii) Consolidated Interest Expense (as defined in the credit agreement) for such period (excluding all interest expense attributable to capitalized loan costs and the amount of fees paid in connection with the issuance of letters of credit on behalf of Quanta during such period). The credit agreement also limits certain acquisitions, mergers and consolidations, indebtedness, asset sales and prepayments of indebtedness and, subject to certain exceptions, prohibits liens on Quanta’s assets. The credit agreement allows cash payments for dividends and stock repurchases subject to compliance with the following requirements (including after giving effect to the dividend or stock repurchase): (i) no default or event of default under the credit agreement; (ii) continued compliance with the financial covenants in the credit agreement; and (iii) at least $100.0 million of availability under the senior credit facility and/or cash and cash equivalents on hand. The credit agreement provides for customary events of default and contains cross-default provisions with other debt instruments exceeding $300.0 million in borrowings or availability. If an Event of Default (as defined in the credit agreement) occurs and is continuing, on the terms and subject to the conditions set forth in the credit agreement, the lenders may declare all amounts outstanding and accrued and unpaid interest immediately due and payable, require that Quanta provide cash collateral for all outstanding letter of credit obligations and terminate the commitments under the credit agreement. In September 2020, pursuant to an amendment of the credit agreement, a pledge of capital stock of certain Quanta subsidiaries and liens on the collateral that secured the obligations under the credit agreement were released, and all of Quanta’s subsidiaries that were guarantors of the obligations under the credit agreement were released from their guarantees of such obligations. In addition, the amendment removed the collateral reinstatement provision that would have applied in the event Quanta’s corporate credit rating were to fall below an investment grade rating. Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands): Year Ended December 31, 2021 2020 2019 Maximum amount outstanding under the senior credit facility $ 1,463,667 $ 2,023,326 $ 2,051,714 Average daily amount outstanding under the senior credit facility $ 591,114 $ 1,091,091 $ 1,553,499 Weighted-average interest rate of the senior credit facility 1.9 % 2.1 % 3.8 % Term Loans. 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 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 term loan facility bear interest, at Quanta’s option, at a rate equal to either (a) the LIBOR Rate (as defined in the 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 above) or Quanta’s Debt Rating (as defined in the credit agreement), whichever is more favorable to Quanta. The Base Rate equals the highest of (i) the Federal Funds Rate (as defined in the credit agreement) plus 0.5%, (ii) Bank of America N.A.’s prime rate and (iii) the LIBOR Rate plus 1.00%. Additionally, to address the transition in financial markets away from the London Interbank Offered Rate (LIBOR), the credit agreement includes customary LIBOR benchmark replacement provisions. The benchmark replacement for U.S. dollar-denominated loans may be a rate based on the secured overnight financing rate published by the Federal Reserve Bank of New York or an alternate benchmark, subject to the terms and conditions set forth in the credit agreement. In certain circumstances, loans in U.S. dollars would default to the Base Rate, which under such circumstances would equal the highest of (i) the Federal Funds Rate (as defined in the credit agreement) plus 0.5% and (ii) the prime rate publicly announced by Bank of America, N.A. Revolving Loans. As of December 31, 2021, Quanta had $449.8 million of outstanding revolving loans under the senior credit facility. Of the total outstanding borrowings, $102.4 million were denominated in U.S. dollars, $312.6 million were denominated in Canadian dollars and $34.8 million were denominated in Australian dollars. As of December 31, 2021, Quanta also had $318.2 million of letters of credit issued under the senior credit facility, of which $241.7 million were denominated in U.S. dollars and $76.5 million were denominated in currencies other than the U.S. dollar, primarily Canadian dollars. As of December 31, 2021, subject to the applicable sublimits and other terms and conditions, the remaining $1.87 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. 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 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 credit agreement are subject to a letter of credit fee of 1.125% to 1.750%; Performance Letters of Credit (as defined in the credit agreement) issued under the credit agreement in support of certain contractual obligations are subject to a letter of credit fee of 0.675% to 1.125%; 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. Additionally, as described above, the credit agreement includes customary LIBOR benchmark replacement provisions. Prior to October 8, 2021, revolving loans borrowed in U.S. dollars bore interest, at Quanta’s option, at a rate equal to either (i) the Eurocurrency Rate (as defined in the credit agreement) plus 1.125% to 2.000%, as determined based on Quanta’s Consolidated Leverage Ratio, or (ii) the prior base rate (as described below) plus 0.125% to 1.000%, as determined based on Quanta’s Consolidated Leverage Ratio. Revolving loans borrowed in any currency other than U.S. dollars bore interest at a rate equal to the Eurocurrency Rate plus 1.125% to 2.000%, as determined based on Quanta’s Consolidated Leverage Ratio. Additionally, standby or commercial letters of credit issued under the credit agreement were subject to a letter of credit fee of 1.125% to 2.000%, based on Quanta’s Consolidated Leverage Ratio, and Performance Letters of Credit (as defined in the credit agreement) issued under the credit agreement in support of certain contractual obligations were subject to a letter of credit fee of 0.675% to 1.150%, based on Quanta’s Consolidated Leverage Ratio. The prior calculation for base rate equaled the highest of (i) the Federal Funds Rate (as defined in the credit agreement) plus 0.5%, (ii) the prime rate publicly announced by Bank of America, N.A. and (iii) the Eurocurrency Rate plus 1.00%. Quanta was also subject to a commitment fee of 0.275% to 0.425% from September 22, 2020 through October 7, 2021, based on its Consolidated Leverage Ratio, on any unused availability under the senior credit facility. Prior to the amendment on September 22, 2020, Quanta was subject to a commitment fee of 0.200% to 0.400%. Deferred Financing Costs. Capitalized deferred financing costs related to Quanta’s senior credit facility (other than deferred financing costs related to the term loan, which are recorded along with deferred financing costs related to the Senior Notes in a contra account to long-term debt) are included in “Other assets, net” in the accompanying consolidated balance sheets and are amortized to “Interest and other financing expenses” on a straight-line basis over the terms of the respective agreements giving rise to the costs, which Quanta believes approximates the effective interest rate method. As of December 31, 2021 and 2020, capitalized deferred financing costs, net of accumulated amortization, related to Quanta’s revolving loans under its senior credit facility were $10.1 million and $9.7 million. 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 $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 in October 2021, the remaining aggregate commitments under the commitment letter were reduced to zero and the commitment was terminated. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASES:Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. As of December 31, 2021, the majority of Quanta’s leases had remaining lease terms less than 9.5 years. Certain leases include options to extend their terms in increments of up to five years and/or options to terminate. The components of lease costs in the accompanying consolidated statements of operations are as follows (in thousands): Year Ended December 31, Lease cost Classification 2021 2020 2019 Finance lease cost: Amortization of lease assets Depreciation (1) $ 1,097 $ 1,234 $ 1,393 Interest on lease liabilities Interest and other financing expenses 90 107 64 Operating lease cost Cost of services and Selling, general and administrative expenses 104,668 116,672 121,767 Short-term and variable lease cost (2) Cost of services and Selling, general and administrative expenses 716,722 656,649 837,244 Total lease cost $ 822,577 $ 774,662 $ 960,468 (1) Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying 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. 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 ten years, subject to renewal options. Related party lease expense was $13.9 million, $14.3 million and $16.7 million for the years ended December 31, 2021, 2020 and 2019. The components of leases in the accompanying consolidated balance sheets were as follows (in thousands): December 31, Lease type Classification 2021 2020 Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 240,605 $ 256,845 Finance lease assets Property and equipment, net of accumulated depreciation 2,415 2,370 Total lease assets $ 243,020 $ 259,215 Liabilities: Current: Operating Current portion of operating lease liabilities $ 78,251 $ 85,134 Finance Current maturities of long-term debt and short-term debt 1,156 846 Non-current: Operating Operating lease liabilities, net of current portion 170,427 178,822 Finance Long-term debt, net of current maturities 1,390 1,382 Total lease liabilities $ 251,224 $ 266,184 Certain of Quanta’s equipment rental agreements contain purchase options pursuant to which the purchase price is offset by a portion of the rental payments. When rental purchase options are exercised and a substantive benefit is deemed to be transferred to a third-party lessor, the transaction is deemed to be a financing transaction for accounting purposes. This results in the recognition of an asset equal to the purchase price being recorded in “Property, plant and equipment, net of accumulated depreciation,” and the recognition of a corresponding liability in “Current maturities of long-term debt and short-term debt” and “Long-term debt, net of current maturities.” As of December 31, 2021 and 2020, the assets recorded, net of accumulated depreciation, totaled $53.9 million and $45.7 million. Future minimum lease payments for operating and finance leases were as follows (in thousands): As of December 31, 2021 Operating Leases Finance Leases Total 2022 $ 85,427 $ 1,185 $ 86,612 2023 63,890 907 64,797 2024 44,113 423 44,536 2025 30,638 137 30,775 2026 20,602 — 20,602 Thereafter 23,866 — 23,866 Total future minimum operating and finance lease payments 268,536 2,652 271,188 Less imputed interest (19,858) (106) (19,964) Total lease liabilities $ 248,678 $ 2,546 $ 251,224 Future minimum lease payments for short-term leases, which are not recorded in the consolidated balance sheets due to Quanta’s accounting policy election, were $14.0 million as of December 31, 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 December 31, 2021 2020 Weighted average remaining lease term (in years): Operating leases 4.25 4.28 Finance leases 2.57 3.06 Weighted average discount rate: Operating leases 3.7 % 4.2 % Finance leases 3.3 % 4.1 % 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 December 31, 2021, the maximum guaranteed residual value of this equipment was $891.8 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. |
Leases | LEASES:Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. As of December 31, 2021, the majority of Quanta’s leases had remaining lease terms less than 9.5 years. Certain leases include options to extend their terms in increments of up to five years and/or options to terminate. The components of lease costs in the accompanying consolidated statements of operations are as follows (in thousands): Year Ended December 31, Lease cost Classification 2021 2020 2019 Finance lease cost: Amortization of lease assets Depreciation (1) $ 1,097 $ 1,234 $ 1,393 Interest on lease liabilities Interest and other financing expenses 90 107 64 Operating lease cost Cost of services and Selling, general and administrative expenses 104,668 116,672 121,767 Short-term and variable lease cost (2) Cost of services and Selling, general and administrative expenses 716,722 656,649 837,244 Total lease cost $ 822,577 $ 774,662 $ 960,468 (1) Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying 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. 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 ten years, subject to renewal options. Related party lease expense was $13.9 million, $14.3 million and $16.7 million for the years ended December 31, 2021, 2020 and 2019. The components of leases in the accompanying consolidated balance sheets were as follows (in thousands): December 31, Lease type Classification 2021 2020 Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 240,605 $ 256,845 Finance lease assets Property and equipment, net of accumulated depreciation 2,415 2,370 Total lease assets $ 243,020 $ 259,215 Liabilities: Current: Operating Current portion of operating lease liabilities $ 78,251 $ 85,134 Finance Current maturities of long-term debt and short-term debt 1,156 846 Non-current: Operating Operating lease liabilities, net of current portion 170,427 178,822 Finance Long-term debt, net of current maturities 1,390 1,382 Total lease liabilities $ 251,224 $ 266,184 Certain of Quanta’s equipment rental agreements contain purchase options pursuant to which the purchase price is offset by a portion of the rental payments. When rental purchase options are exercised and a substantive benefit is deemed to be transferred to a third-party lessor, the transaction is deemed to be a financing transaction for accounting purposes. This results in the recognition of an asset equal to the purchase price being recorded in “Property, plant and equipment, net of accumulated depreciation,” and the recognition of a corresponding liability in “Current maturities of long-term debt and short-term debt” and “Long-term debt, net of current maturities.” As of December 31, 2021 and 2020, the assets recorded, net of accumulated depreciation, totaled $53.9 million and $45.7 million. Future minimum lease payments for operating and finance leases were as follows (in thousands): As of December 31, 2021 Operating Leases Finance Leases Total 2022 $ 85,427 $ 1,185 $ 86,612 2023 63,890 907 64,797 2024 44,113 423 44,536 2025 30,638 137 30,775 2026 20,602 — 20,602 Thereafter 23,866 — 23,866 Total future minimum operating and finance lease payments 268,536 2,652 271,188 Less imputed interest (19,858) (106) (19,964) Total lease liabilities $ 248,678 $ 2,546 $ 251,224 Future minimum lease payments for short-term leases, which are not recorded in the consolidated balance sheets due to Quanta’s accounting policy election, were $14.0 million as of December 31, 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 December 31, 2021 2020 Weighted average remaining lease term (in years): Operating leases 4.25 4.28 Finance leases 2.57 3.06 Weighted average discount rate: Operating leases 3.7 % 4.2 % Finance leases 3.3 % 4.1 % 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 December 31, 2021, the maximum guaranteed residual value of this equipment was $891.8 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES: U.S. federal and state and foreign income tax laws and regulations are voluminous and often ambiguous. As such, Quanta is required to make many subjective assumptions and judgments regarding its tax positions that could materially affect amounts recognized in its future consolidated balance sheets, statements of operations and statements of comprehensive income. The components of income before income taxes were as follows (in thousands): Year Ended December 31, 2021 2020 2019 Income before income taxes: Domestic $ 534,302 $ 632,791 $ 550,676 Foreign 88,599 (61,445) 21,611 Total $ 622,901 $ 571,346 $ 572,287 The components of the provision for income taxes were as follows (in thousands): Year Ended December 31, 2021 2020 2019 Current: Federal $ 65,273 $ 134,538 $ 121,214 State 32,930 45,610 35,329 Foreign 6,644 (745) 16,848 Total current tax provision 104,847 179,403 173,391 Deferred: Federal 27,762 (46,251) 7,379 State (2,418) (3,850) (1,776) Foreign 727 (9,915) (13,522) Total deferred tax provision (benefit) 26,071 (60,016) (7,919) Total provision for income taxes $ 130,918 $ 119,387 $ 165,472 The actual income tax provision differed from the income tax provision computed by applying the U.S. federal statutory corporate rate to income before provision for income taxes as follows (in thousands): Year Ended December 31, 2021 2020 2019 Provision at the statutory rate $ 130,809 $ 119,983 $ 120,180 Increases (decreases) resulting from — State taxes 27,204 31,791 23,399 Valuation allowance on deferred tax assets 6,107 (31,138) 35,761 Employee per diems, meals and entertainment 3,569 10,680 13,817 Contingency reserves, net 844 (2,125) (3,173) Company-owned life insurance (6,969) — — Taxes on joint ventures (8,825) (3,466) (930) Foreign taxes (9,359) (7,268) (21,565) Stock-based compensation (21,271) (3,109) (1,863) Other 8,809 4,039 (154) Total provision for income taxes $ 130,918 $ 119,387 $ 165,472 Deferred income taxes result from temporary differences in the recognition of income and expenses for financial reporting purposes and tax purposes. The tax effects of these temporary differences, representing deferred tax assets and liabilities, result principally from the following (in thousands): December 31, 2021 2020 Deferred income tax liabilities: Property and equipment $ (278,303) $ (236,256) Goodwill (93,632) (85,467) Leased assets (76,728) (77,344) Customer holdbacks (32,661) (30,457) Other intangible assets — (4,438) Total deferred income tax liabilities (481,324) (433,962) Deferred income tax assets: Net operating loss carryforwards 78,947 82,817 Lease liabilities 76,608 76,826 Accruals and reserves 65,852 70,335 Stock and incentive compensation 50,772 36,590 Tax credits 39,826 42,202 Other intangible assets 19,110 — Deferred tax benefits on unrecognized tax positions 10,090 10,108 Other 7,535 9,617 Subtotal 348,740 328,495 Valuation allowance (41,308) (43,255) Total deferred income tax assets 307,432 285,240 Total net deferred income tax liabilities $ (173,892) $ (148,722) The net deferred income tax assets and liabilities comprised the following in the accompanying consolidated balance sheets (in thousands): December 31, 2021 2020 Deferred income taxes: Assets $ 17,206 $ 17,685 Liabilities (191,098) (166,407) Total net deferred income tax liabilities $ (173,892) $ (148,722) The valuation allowances for deferred income tax assets at December 31, 2021, 2020 and 2019 were $41.3 million, $43.3 million and $104.2 million. These valuation allowances relate to state and foreign net operating loss carryforwards and foreign tax credits. The net changes in the total valuation allowance for each of the years ended December 31, 2021, 2020 and 2019 were a decrease of $1.9 million, a decrease of $60.9 million and an increase of $36.6 million. The change in valuation allowance during the year ended December 31, 2021 resulted in a $6.1 million increase in tax expense due to approximately $8.5 million of new valuation allowances primarily recorded on foreign net operating losses, which was partially offset by a $2.4 million valuation allowance release recorded due to the completion of certain internal restructuring efforts that increased management’s visibility into future utilization of certain state net operation losses. The total valuation allowance was reduced by $1.9 million from December 31, 2020 to December 31, 2021 as a result of a reduction of $8.0 million due to the expiration of certain net operating losses, for which a valuation allowance had previously been recorded, as well as currency translation adjustments on previously recorded valuation allowances, offset by an increase to the valuation allowance as a result of the $6.1 million of new valuation allowances as noted above. The change in valuation allowance during the year ended December 31, 2020 resulted in a $31.1 million reduction in tax expense, primarily due to a release of $45.1 million of valuation allowance on foreign tax credits due to the completion of an internal financial reorganization, which was partially offset by the establishment of $14.0 million of new valuation allowances on deferred tax assets generated during the year ended December 31, 2020. The total change in valuation allowance for the year ended December 31, 2020 was a $60.9 million reduction, primarily due to the removal of approximately $29.4 million of foreign net operating losses that were no longer eligible to be carried forward as well as the $31.1 million reduction noted above. The valuation allowances were established primarily as a result of uncertainty in Quanta’s outlook as to the amount and character of future taxable income in particular tax jurisdictions. Quanta believes it is more likely than not that it will realize the benefit of its deferred tax assets net of existing valuation allowances. At December 31, 2021, Quanta had state and foreign net operating loss carryforwards, the tax effect of which was $80.0 million. These carryforwards will expire as follows: 2022, $0.2 million; 2023, $0.7 million; 2024, $0.1 million; 2025, $6.2 million; 2026, $0.4 million; and $72.4 million thereafter. A valuation allowance of $40.0 million has been recorded against certain foreign and state net operating loss carryforwards. Quanta generally does not provide for taxes related to undistributed earnings of its foreign subsidiaries because such earnings either would not be taxable when remitted or they are considered to be indefinitely reinvested. Quanta could also be subject to additional foreign withholding taxes if it were to repatriate cash that is indefinitely reinvested outside the United States, but it does not expect such amount to be material. A reconciliation of unrecognized tax benefit balances is as follows (in thousands): December 31, 2021 2020 2019 Balance at beginning of year $ 33,219 $ 40,878 $ 41,110 Additions based on tax positions related to the current year 6,881 4,398 7,708 Additions for tax positions of prior years 2,339 — 1,200 Reductions for tax positions of prior years — (2,410) — Reductions for audit settlements — (930) (3,205) Reductions resulting from a lapse of the applicable statute (4,702) (8,717) (5,935) Balance at end of year $ 37,737 $ 33,219 $ 40,878 As of December 31, 2021, the total amount of unrecognized tax benefits relating to uncertain tax positions was $37.7 million, an increase of $4.5 million from December 31, 2020. This aggregate increase resulted primarily from reserves for uncertain tax positions taken in 2021. For the year ended December 31, 2020, the $12.1 million of aggregate reductions were primarily due to the favorable settlement of U.S. and Canadian tax audits and the expiration of U.S. federal and state statutes of limitations. For the year ended December 31, 2019, the $9.1 million of aggregate reductions were primarily due to the favorable settlement of certain non-U.S. income tax obligations of an acquired business and the expiration of U.S. state income tax statutes of limitations. The balances of unrecognized tax benefits, the amount of related interest and penalties and what Quanta believes to be the range of reasonably possible changes in the next 12 months are as follows (in thousands): December 31, 2021 2020 2019 Unrecognized tax benefits $ 37,737 $ 33,219 $ 40,878 Portion that, if recognized, would reduce tax expense and 34,967 30,868 40,695 Accrued interest on unrecognized tax benefits 4,369 5,204 6,240 Accrued penalties on unrecognized tax benefits 1,587 14 14 Reasonably possible reduction to the balance of unrecognized $0 to $8,098 $0 to $11,859 $0 to $6,268 Portion that, if recognized, would reduce tax expense and $0 to $7,277 $0 to $10,217 $0 to $5,693 Quanta classifies interest and penalties within the provision for income taxes. Quanta recognized interest income of $0.8 million, interest income of $0.7 million and interest expense of $0.8 million in the provision for income taxes for the years ended December 31, 2021, 2020 and 2019. Quanta’s consolidated federal income tax return for tax year 2019 is currently under examination by the Internal Revenue Service (IRS), and Quanta’s consolidated federal income tax returns for tax years 2017, 2018, and 2020 remain open to |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity | EQUITY: Treasury Stock General Treasury stock is recorded at cost. Under Delaware law, treasury stock is not counted for quorum purposes or entitled to vote. Shares withheld for tax withholding obligations The tax withholding obligations of employees with respect to RSUs and PSUs that are settled in common stock are typically satisfied by Quanta making tax payments and withholding the number of common shares having a value equal to the tax withholding obligation that is due on the date of vesting or settlement (as applicable). With respect to these liabilities, Quanta withheld 0.8 million shares of Quanta common stock during the year ended December 31, 2021, which had a market value of $65.3 million, 0.6 million shares of Quanta common stock during the year ended December 31, 2020, which had a market value of $25.5 million, and 0.5 million shares of Quanta common stock during the year ended December 31, 2019, which had a market value of $17.4 million. These shares and the related costs to acquire them were accounted for as adjustments to the balance of treasury stock. Notional amounts recorded related to deferred compensation plans For RSUs and PSUs that vest but the settlement of which is deferred under a deferred compensation plan, Quanta records a notional amount to “Treasury stock” and an offsetting amount to “Additional paid-in capital.” At vesting, only shares withheld for tax liabilities other than income taxes are added to outstanding treasury shares, as the shares of Quanta common stock associated with deferred stock-based awards are not issued until settlement of the award. Upon settlement of the deferred stock-based awards and issuance of the associated Quanta common stock, the original accounting entry is reversed. The net amounts recorded to treasury stock related to the deferred compensation plans were a reduction to treasury stock of $6.8 million, a reduction to treasury stock of $4.4 million and an increase to treasury stock of $3.0 million during the years ended December 31, 2021, 2020 and 2019. Stock repurchases During the third quarter of 2018, Quanta’s Board of Directors approved a stock repurchase program that authorized Quanta to purchase up to $500.0 million of its outstanding common stock, which was completed in 2021. In August 2020, Quanta’s Board of Directors approved a stock repurchase program that authorized Quanta to repurchase, from time to time through June 30, 2023, up to an additional $500.0 million in shares of its outstanding common stock, and as of December 31, 2021, $472.8 million remained available under this repurchase program. Quanta repurchased the following shares of common stock in the open market under the stock repurchase programs based on the trade date (in thousands): Year ended: Shares Amount December 31, 2021 721 $ 63,988 December 31, 2020 6,680 $ 249,949 December 31, 2019 376 $ 11,954 Repurchases may be implemented through open market repurchases or privately negotiated transactions, at management’s discretion, based on market and business conditions, applicable contractual and legal requirements, including restrictions under Quanta’s senior credit facility, and other factors. Quanta is not obligated to acquire any specific amount of common stock, and the repurchase program may be modified or terminated by Quanta’s Board of Directors at any time at its sole discretion and without notice. 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 years ended December 31, 2021, 2020 and 2019, cash payments related to stock repurchases were $66.7 million, $247.2 million and $20.1 million. Non-controlling Interests Quanta holds interests in various entities through both joint venture entities that provide infrastructure-related services under specific customer contracts, either directly or through subcontracting relationships, and other equity investments in partially owned entities that own and operate certain infrastructure assets, including investments entered into through the partnership structure Quanta formed with certain infrastructure investors. Quanta has determined that certain of these joint ventures where Quanta provides the majority of the infrastructure services, which management believes most significantly influences the economic performance of such joint ventures, are VIEs. Management has concluded that Quanta is the primary beneficiary of these joint ventures and has accounted for each on a consolidated basis. The other parties’ equity interests in these joint ventures have been accounted for as “Non-controlling interests” in Quanta’s consolidated balance sheets. Net income attributable to the other participants in the amounts of $6.0 million, $6.4 million and $4.8 million for the years ended December 31, 2021, 2020 and 2019 have been accounted for as a reduction of net income in deriving “Net income attributable to common stock” in Quanta’s consolidated statements of operations. The carrying amount of the investments in VIEs held by Quanta was $12.9 million and $13.2 million at December 31, 2021 and 2020. The carrying amounts of investments held by the non-controlling interests in these VIEs were $4.6 million and $4.8 million at December 31, 2021 and 2020 and are included in “Non-controlling interests” in the consolidated balance sheets. During the years ended December 31, 2021, 2020 and 2019, net distributions to non-controlling interests were $6.4 million, $5.4 million and $2.5 million. There were no other material changes in equity as a result of transfers to/from the non-controlling interests during the years ended December 31, 2021, 2020 or 2019. See Note 16 for further disclosures related to Quanta’s joint venture arrangements. Dividends Quanta declared and paid the following cash dividends and cash dividend equivalents during 2021, 2020 and 2019 (in thousands, except per share amounts): Declaration Record Payment Dividend Dividends Date Date Date Per Share Declared December 1, 2021 January 4, 2022 January 14, 2022 $ 0.07 $ 10,363 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 December 11, 2019 January 2, 2020 January 16, 2020 $ 0.05 $ 7,371 August 28, 2019 October 1, 2019 October 15, 2019 $ 0.04 $ 5,564 May 24, 2019 July 1, 2019 July 15, 2019 $ 0.04 $ 6,233 March 21, 2019 April 5, 2019 April 19, 2019 $ 0.04 $ 5,896 December 6, 2018 January 2, 2019 January 16, 2019 $ 0.04 $ 5,838 A significant majority of the dividends declared were paid on the corresponding payment dates. Holders of RSUs awarded under the Quanta Services, Inc. 2011 Omnibus Equity Incentive Plan (the 2011 Plan) generally received cash dividend equivalent payments equal to the cash dividend payable on account of the underlying Quanta common stock. Holders of RSUs awarded under the Quanta Services, Inc. 2019 Omnibus Equity Incentive Plan (the 2019 Plan) and holders of unearned and unvested PSUs awarded under the 2011 Plan and the 2019 Plan receive cash dividend equivalent payments only to the extent such RSUs and PSUs become earned and/or vest. Additionally, cash dividend equivalent payments related to certain stock-based awards that have been deferred pursuant to the terms of a deferred compensation plan maintained by Quanta are recorded as liabilities in such plans until the deferred awards are settled. The declaration, payment and amount of future cash dividends will be at the discretion of Quanta’s Board of Directors after taking into account various factors, including Quanta’s financial condition, results of operations and cash flows from operations; current and anticipated capital requirements and expansion plans; the current and potential impact of market, industry, economic and political conditions; income tax laws then in effect; and the requirements of Delaware law. In addition, as discussed in Note 10 , Quanta’s credit agreement restricts the payment of cash dividends unless certain conditions are met. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION: Stock Incentive Plans The 2019 Plan was approved by Quanta’s stockholders in May 2019 and provides for the award of non-qualified stock options, incentive (qualified) stock options, stock appreciation rights, restricted stock awards, RSUs, stock bonus awards, performance compensation awards (including cash bonus awards) or any combination of the foregoing. Current and prospective employees, directors, officers, advisors or consultants of Quanta or its affiliates are eligible to participate in the 2019 Plan. Subject to certain adjustments, the maximum number of shares available for issuance under the 2019 Plan is 7,466,592 shares, plus any shares underlying share-settling awards previously awarded pursuant to the 2011 Plan that are ultimately forfeited, canceled, expired or settled in cash subsequent to stockholder approval of the 2019 Plan. All awards subsequent to stockholder approval of the 2019 Plan have been and will be made pursuant to the 2019 Plan and applicable award agreements. Awards made under the 2011 Plan prior to approval of the 2019 Plan remain subject to the terms of the 2011 Plan and applicable award agreements. RSUs to be Settled in Common Stock A summary of the activity for RSUs to be settled in common stock for the years ended December 31, 2021, 2020 and 2019 is as follows (shares in thousands): 2021 2020 2019 Shares Weighted Average Shares Weighted Average Shares Weighted Average Unvested at January 1 3,869 $37.57 3,265 $35.34 2,634 $33.50 Granted 1,642 $94.83 2,029 $39.91 2,142 $35.62 Vested (1,476) $37.03 (1,269) $35.69 (1,349) $32.22 Forfeited (155) $48.52 (156) $36.67 (162) $35.20 Unvested at December 31 3,880 $61.64 3,869 $37.57 3,265 $35.34 The grant date fair value for RSUs to be settled in common stock is based on the market value of Quanta common stock on the date of grant. RSU awards to be settled in common stock are subject to forfeiture, restrictions on transfer and certain other conditions until vesting, which generally occurs in three five During the years ended December 31, 2021, 2020 and 2019, Quanta recognized $67.3 million, $55.7 million and $45.5 million of non-cash stock compensation expense related to RSUs to be settled in common stock. Such expense is recorded in “Selling, general and administrative expenses.” As of December 31, 2021, there was $139.5 million of total unrecognized compensation expense related to unvested RSUs to be settled in common stock granted to both employees and non-employees. This cost is expected to be recognized over a weighted average period of 4.54 years. PSUs to be Settled in Common Stock A summary of the activity for PSUs to be settled in common stock for the years ended December 31, 2021, 2020 and 2019 is as follows (shares in thousands): 2021 2020 2019 Shares Weighted Average Shares Weighted Average Grant Date Fair Value (Per share) (1) Shares Weighted Average Unvested at January 1 1,047 $37.65 848 $40.04 775 $34.72 Granted 174 $90.44 437 $34.60 358 $40.15 Vested (268) $38.28 (238) $41.87 (236) $22.73 Forfeited (22) $41.86 — N/A (49) $40.07 Unvested at December 31 931 $47.27 1,047 $37.65 848 $40.04 (1) Certain weighted average grant date fair value per share amounts related to the year ended December 31, 2020 have been recast to conform to the correction of the valuation of PSUs described below. PSUs provide for the issuance of shares of common stock upon vesting, which occurs at the end of a three-year performance period based on achievement of certain company performance metrics established by the Compensation Committee of Quanta’s Board of Directors, including financial and operational goals and Quanta’s total shareholder return as compared to a predetermined group of peer companies. The final number of shares of common stock issuable upon vesting of PSUs can range from 0% to 200% of the number of PSUs initially granted, depending on the level of achievement, as determined by the Compensation Committee of Quanta’s Board of Directors. Holders of PSUs are entitled to cash dividend equivalent payments in an amount equal to any cash dividend payable on account of the underlying Quanta common stock; however, payment of such amounts is not made until the PSUs vest, such that the dividend equivalent payments are subject to forfeiture. The grant date fair values of the PSUs were 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 2019 Valuation date price based on March 25, 2021, March 26, 2020 and March 8, 2019 closing stock prices of Quanta common stock $83.48 $31.49 $35.19 Expected volatility 36 % 34 % 25 % Risk-free interest rate 0.26 % 0.35 % 2.43 % Term in years 2.77 2.76 2.81 Quanta recognizes expense, net of estimated forfeitures, for PSUs based on the forecasted achievement of the company financial and operational performance metrics and forecasted performance with respect to relative total shareholder return, multiplied by the completed portion of the three-year period and the fair value of the total number of shares of common stock that Quanta anticipates will be issued based on such achievement. During the years ended December 31, 2021, 2020 and 2019, Quanta recognized $21.0 million, $35.9 million and $6.5 million in compensation expense associated with PSUs. Such expense is recorded in “Selling, general and administrative expenses.” Included in compensation expense associated with PSUs during the year ended December 31, 2020 was a charge of $14.0 million to correct the valuation of certain PSUs during the years 2017 to 2019, $7.2 million of which related to 2019. Quanta assessed the materiality of the prior period error and determined that the error was immaterial to both the current and prior period financial statements. As of December 31, 2021, there was $17.5 million of total unrecognized compensation expense related to unvested PSUs to be settled in common stock granted to both employees and non-employees based on currently estimated levels of attainment of established performance goals. The compensation expense related to outstanding PSUs can vary from period to period based on changes in forecasted achievement of established performance goals and the total number of shares of common stock that Quanta anticipates will be issued upon vesting of such PSUs. Compensation cost related to PSUs outstanding at December 31, 2021 is expected to be recognized over a weighted average period of 1.66 years. During the year ended December 31, 2021, 2020 and 2019, 0.5 million, 0.5 million and 0.4 million shares of common stock were earned and either issued or deferred for future issuance in connection with PSUs. The approximate fair values of PSUs settled in common stock during the years ended December 31, 2021, 2020 and 2019 were $45.2 million, $18.3 million and $13.1 million, respectively. RSUs to be Settled in Cash Certain RSUs granted by Quanta are settled solely in cash. These cash-settled RSUs are intended to provide plan participants with cash performance incentives that are substantially equivalent to the risks and rewards of stock ownership in Quanta, typically vest in three Compensation expense related to RSUs to be settled in cash was $17.4 million, $9.4 million and $5.9 million for the years ended December 31, 2021, 2020 and 2019. 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, $4.3 million and $5.4 million to settle liabilities related to cash-settled RSUs in the years ended December 31, 2021, 2020 and 2019. Accrued liabilities for the estimated earned value of outstanding RSUs to be settled in cash were $11.1 million and $8.7 million at December 31, 2021 and 2020. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS: Unions’ Multiemployer Pension Plans Quanta contributes to a number of multiemployer defined benefit pension plans under the terms of collective bargaining agreements with various unions that represent certain of Quanta’s employees. Approximately 35% of Quanta’s employees at December 31, 2021 were covered by collective bargaining agreements. Quanta’s multiemployer pension plan contribution rates generally are specified in the collective bargaining agreements (usually on a monthly or annual basis), and contributions are made to the plans on a “pay-as-you-go” basis based on its union employee payrolls. Quanta may also have additional liabilities imposed by law as a result of its participation in multiemployer defined benefit pension plans. The Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980, imposes certain liabilities upon an employer who is a contributor to a multiemployer pension plan if the employer withdraws or is deemed to have withdrawn from the plan or the plan is terminated or experiences a mass withdrawal. The Pension Protection Act of 2006 (PPA) also added special funding and operational rules generally applicable to plan years beginning after 2007 for multiemployer plans in the United States that are classified as “endangered,” “seriously endangered” or “critical” status based on multiple factors (including, for example, the plan’s funded percentage, cash flow position and whether a projected minimum funding deficiency exists). Plans in these classifications must adopt remedial measures to improve their funded status through a funding improvement or rehabilitation plan, as applicable, which may require additional contributions from employers (which may take the form of a surcharge on benefit contributions) and/or modifications to retiree benefits. Certain plans to which Quanta contributes or may contribute in the future are in “endangered,” “seriously endangered” or “critical” status. The amount of additional funds, if any, that Quanta may be obligated to contribute to these plans cannot be reasonably estimated due to uncertainty regarding the amount of future work involving covered union employees, future contribution levels and possible surcharges on plan contributions. The following table summarizes plan information relating to Quanta’s participation in multiemployer defined benefit pension plans, including company contributions for the last three years, the status of the plans under the PPA and whether the plans are subject to a funding improvement or rehabilitation plan or contribution surcharges. The most recent PPA zone status available in 2021 and 2020 relates to the plans’ fiscal year-ends in 2020 and 2019. Forms 5500 were not yet available for the plan years ending in 2021. The PPA zone status is based on information that Quanta received from the respective plans, as well as publicly available information on the U.S. Department of Labor website, and is certified by the plan’s actuary. Although multiple factors or tests may result in red zone or yellow zone status, plans in the red zone generally are less than 65 percent funded, plans in the yellow zone generally are less than 80 percent funded, and plans in the green zone generally are at least 80 percent funded. Under the PPA, red zone plans are classified as “critical” status, yellow zone plans are classified as “endangered” status and green zone plans are classified as neither “endangered” nor “critical” status. The “Subject to Financial Improvement/ Rehabilitation Plan” column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented. The last column lists the expiration dates of Quanta’s collective-bargaining agreements to which the plans are subject. Total contributions to these plans correspond to the number of union employees employed at any given time and the plans in which they participate and vary depending upon the location and number of ongoing projects at a given time and the need for union resources in connection with such projects. Information has been presented separately for individually significant plans, based on PPA funding status classification, and in the aggregate for all other plans. Employee Identification Number/ Pension Plan Number PPA Zone Status Subject to Financial Improve- ment/ Reha- bilitation Plan Contributions (in thousands) Sur-charge Imposed Expiration Date of Collective Bargaining Agreement Fund 2021 2020 2021 2020 2019 National Electrical Benefit Fund 53-0181657 Green Green No $ 38,195 $ 40,902 $ 44,414 No Varies through May 2026 Excavators Union Local 731 Pension Fund 13-1809825 Green Green No 16,202 14,310 6,697 No April 2022 Central Pension Fund of the IUOE & Participating Employers 36-6052390 Green Green No 11,237 8,467 11,638 No Varies through May 2024 Pipeline Industry Pension Fund 73-6146433 Green Green No 5,081 3,654 9,376 No Varies through June 2023 Laborers Pension Trust Fund for Northern California 94-6277608 Green Green No 4,479 2,328 2,823 No Varies through May 2024 Operating Engineers’ Local 324 Pension Fund 38-1900637 Red Red Yes 2,789 2,629 4,315 No Varies through June 2023 IBEW Local 1249 Pension Plan 15-6035161 Green Green No 2,667 530 771 No Varies through May 2025 Local 697 IBEW and Electrical Industry Pension Fund 51-6133048 Green Green No 2,229 1,840 3,717 No May 2025 Pension Trust Fund for Operating Engineers 94-6090764 Yellow Yellow Yes 1,755 1,177 956 No June 2023 Eighth District Electrical Pension Fund 84-6100393 Green Green No 1,599 4,272 5,939 No Varies through August 2024 Laborers District Council of W PA Pension Fund 25-6135576 Yellow Yellow Yes 1,375 77 1,194 No Varies through May 2024 Teamsters National Pipe Line Pension Plan 46-1102851 Green Green No 1,276 1,380 3,039 No Varies through June 2023 Operating Engineers Pension Trust 95-6032478 Yellow Yellow Yes 1,143 172 119 No Varies through June 2023 Laborers National Pension Fund 75-1280827 Red Red Yes 1,049 638 1,910 No Varies through May 2024 Plumbers and Pipefitters National Pension Fund 52-6152779 Yellow Yellow Yes 932 1,453 1,162 No Varies through March 2023 Michigan Laborers’ Pension Plan 38-6233976 Yellow Yellow Yes 737 512 1,491 No Varies through May 2024 Employer-Teamsters Local Nos 175 & 505 Pension Trust Fund 55-6021850 Red Red Yes 151 48 530 No June 2023 All other plans - U.S. 37,306 30,829 27,655 All other plans - Canada (1) 2,794 6,760 6,451 Total contributions $ 132,996 $ 121,978 $ 134,197 (1) Multiemployer defined benefit pension plans in Canada are not subject to the reporting requirements under the PPA. Accordingly, certain information was not publicly available. Quanta’s contributions to the following individually significant plans were five percent or more of the total contributions to these plans for the periods indicated based on the Forms 5500 for these plans for the years ended December 31, 2020 and 2019. Forms 5500 were not yet available for these plans for the year ended December 31, 2021. Pension Fund Plan Years in which Quanta Contributions Were Five Percent or More of Total Plan Contributions Excavators Union Local 731 Pension Fund 2020 National Electrical Benefit Fund 2020 and 2019 Pipeline Industry Pension Fund 2020 and 2019 Local 697 IBEW and Electrical Industry Pension Fund 2020 and 2019 Eighth District Electrical Pension Fund 2020 and 2019 Teamsters National Pipe Line Pension Plan 2020 and 2019 IBEW Local 456 Pension Plan (1) 2020 and 2019 Local Union No. 9 IBEW and Outside Contractors Pension Fund (1) 2020 and 2019 West Virginia Laborers Pension Trust Fund (1) 2019 (1) This plan is included in the “All other plans - U.S.” category in the prior table. In addition to the contributions made to multiemployer defined benefit pension plans noted above, Quanta also contributed to multiemployer defined contribution or other benefit plans on behalf of certain union employees. Contributions to union multiemployer defined contribution or other benefit plans by Quanta were $213.4 million, $188.6 million and $201.3 million for the years ended December 31, 2021, 2020 and 2019. Total contributions made to all of these multiemployer plans correspond to the number of union employees employed at any given time and the plans in which they participate and vary depending upon the location and number of ongoing projects at a given time and the need for union resources in connection with such projects. Quanta 401(k) Plan Quanta maintains a 401(k) plan pursuant to which employees who are not provided retirement benefits through a collective bargaining agreement may make contributions through a payroll deduction. Quanta makes matching cash contributions of 100% of each employee’s contribution up to 3% of that employee’s salary and 50% of each employee’s contribution between 3% and 6% of such employee’s salary, up to the maximum amount permitted by law. Contributions to the 401(k) plan by Quanta were $50.7 million, $45.9 million and $41.4 million for the years ended December 31, 2021, 2020 and 2019. Deferred Compensation Plans Quanta maintains non-qualified deferred compensation plans pursuant to which non-employee directors and certain key employees may defer receipt of some or all of their cash compensation and/or settlement of certain stock-based awards, subject to certain limitations. These plans are unfunded and unsecured compensation arrangements. Individuals participating in these plans may allocate deferred cash amounts among a group of notional accounts that mirror the gains and losses of various investment alternatives. Generally, participants receive distributions of deferred balances based on predetermined payout schedules or other events. The plan covering key employees provides for employer matching contributions for certain officers and employees whose benefits under the 401(k) plan are limited by federal tax law. Quanta may also make discretionary employer contributions to such plan. Matching contributions vest immediately, and discretionary employer contributions may be subject to a vesting schedule determined at the time of the contribution, provided that vesting accelerates upon a change in control or the participant’s death or retirement. All matching and discretionary employer contributions, whether vested or not, are forfeited upon a participant’s termination of employment for cause or upon the participant engaging in competition with Quanta or any of its affiliates. Quanta made matching contributions to the eligible participants’ accounts under the deferred compensation plans of $1.4 million, $1.3 million and $1.1 million during the years ended December 31, 2021, 2020 and 2019 and did not make discretionary contributions during those years. At December 31, 2021 and 2020, the deferred compensation liability under these plans, including amounts contributed by Quanta, was $74.2 million and $58.2 million, the majority of which was included in “Insurance and other non-current liabilities” in the accompanying consolidated balance sheets. To provide for future obligations related to these deferred compensation plans, Quanta has invested in COLI policies covering certain participants in the deferred compensation plans, the underlying investments of which are intended to be aligned with the investment alternatives elected by |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES: Investments in Affiliates and Other Entities As described in Notes 2, 8 and 13, 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. 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 December 31, 2021, Quanta had $96.0 million of production orders with expected delivery dates in 2022, $71.3 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 capital commitments. Legal Proceedings Quanta is from time to time party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, 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. Quanta evaluates which potential liabilities are probable and the related range of reasonably estimated losses and records a reserve that reflects its best estimate or the lower end of the range, if there is no better estimate. In addition, Quanta discloses matters for which management believes a material loss is at least reasonably possible. The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. 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 and taking into account, among other things, negotiations with claimants, discovery, settlements and payments, judicial rulings, arbitration and mediation decisions, advice of internal and external legal counsel, and other information and events pertaining to a particular matter. Costs incurred for litigation are expensed as incurred. 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. However, 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 $40 million, which represents the U.S. dollar equivalent of the amount asserted based on the December 31, 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 occurred in the fourth quarter of 2021 and a decision is expected during the third or fourth quarter of 2022. 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. 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 December 31, 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 consolidated balance sheet as of December 31, 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 proceeding held in the fourth quarter of 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 December 31, 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 costs. In December 2021, the trial court issued a ruling that reduced the amount of attorneys’ fees and costs available to plaintiffs. Specifically, while not stating the recoverable amount, the court reduced the hourly rate, limited the time period for which fees are recoverable, and lowered the fee enhancement multiplier available. In January 2022, the plaintiffs submitted a supplemental filing in response to the trial court’s ruling requesting approval of approximately $17.6 million of attorneys’ fees and costs. In February 2022, the plaintiffs separately appealed the trial court’s December 2021 ruling with respect to the reduction of their claimed attorneys’ fees and costs. Quanta is planning to submit a supplemental response disputing the amount of the plaintiffs’ revised calculation of recoverable attorneys’ fees and costs in advance of the next trial court hearing on this matter, which is scheduled for April 2022. Quanta also expects to appeal certain aspects of the trial court’s December 2021 ruling. 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 and attorneys’ fees, 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 the amount of 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, interest 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 December 31, 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. Silverado Wildfire Matter In January 2022, two of Quanta’s subsidiaries received a tender of defense and demand for preservation of evidence from Southern California Edison Company (SCE) related to two lawsuits filed in April 2021 and November 2021 against SCE and T-Mobile USA, Inc. (T-Mobile) in the Superior Court of California, County of Orange. The lawsuits assert property damage and related claims on behalf of certain individuals and subrogation claims on behalf of insurers relating to damages caused by a wildfire that began in October 2020 in Orange County, California (the Silverado Fire) and that is purported to have damaged approximately 13,000 acres. The lawsuits allege the Silverado Fire originated from utility poles in the area, generally claiming that each defendant failed to adequately maintain, inspect, repair or replace its overhead facilities, equipment and utility poles and remove vegetation in the vicinity; that the utility poles were overloaded with equipment from shared usage; and that SCE failed to de-energize its facilities during red flag warnings for a Santa Ana wind event. The lawsuits allege the Silverado Fire started when SCE and T-Mobile equipment contacted each other and note the Orange County Fire Department is investigating whether a T-Mobile lashing wire contacted an SCE overhead primary conductor in high winds. In October 2021, T-Mobile filed a cross-complaint against SCE alleging the ignition site of the Silverado Fire encompassed two utility poles replaced by SCE or a third party engaged by SCE, and that certain equipment, including T-Mobile’s lashing wire, was not sufficiently re-secured after the utility pole replacements. One of Quanta’s subsidiaries performed planning and other services related to the two utility poles, and another Quanta subsidiary replaced the utility poles and reattached the electrical and telecommunication equipment to the new utility poles in March 2019, approximately 19 months before the Silverado Fire. Pursuant to the general terms of a master services agreement and a master consulting services agreement between the Quanta subsidiaries and SCE, the subsidiaries agreed to defend and indemnify SCE against certain claims arising with respect to performance or nonperformance under the agreements. The SCE tender letters seek contractual indemnification and defense from Quanta’s subsidiaries for the claims asserted against SCE in the lawsuits and the T-Mobile cross-complaint. Quanta’s subsidiaries intend to vigorously defend against the lawsuits, the T-Mobile cross-complaint and any other claims asserted in connection with the Silverado Fire. Quanta will continue to review additional information in connection with this matter as litigation and resolution efforts progress, and any such information may potentially allow Quanta to determine an estimate of potential loss, if any. As of December 31, 2021, Quanta had not recorded an accrual with respect to this matter, and Quanta is currently unable to reasonably estimate a range of reasonably possible loss, if any, because there are a number of unknown facts and legal considerations that may impact the amount of any potential liability. Quanta also believes that to the extent its subsidiaries are determined to be liable for any damages resulting from this matter, its insurance would be applied to any such liabilities over its deductible amount and its insurance coverage would be adequate to cover such potential liabilities. However, the ultimate amount of any potential liability and insurance coverage in connection with this matter remains subject to uncertainties associated with pending and potential future litigation. 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. Quanta grants credit under normal payment terms, generally without collateral, to its customers, which primarily include utilities, renewable energy developers, communications providers, industrial companies and energy delivery companies located primarily in the United States, Canada and Australia. No customer represented 10% or more of Quanta’s consolidated revenues for the years ended December 31, 2021, 2020 or 2019. One customer represented 11% of Quanta’s consolidated net receivable position at December 31, 2021. Another customer, when combined with the net receivable position of a joint venture in which such customer owns a 50% interest, also represented 11% of Quanta’s consolidated net receivable position at December 31, 2021. The projects for these customers were primarily in Quanta’s Electric Power Infrastructure Solutions and Renewable Energy segments. No customer represented 10% or more of Quanta’s consolidated net receivable position at December 31, 2020. 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 uncertainties and challenges in the energy market and overall economy caused by the COVID-19 pandemic. 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 at September 30, 2021 was reclassified to long-term receivables as of such date. Quanta also retained |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS For disclosure purposes, qualifying assets and liabilities are categorized into three broad levels based on the priority of the inputs used to determine their fair values. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Certain assumptions and other information as they relate to these qualifying assets and liabilities are described below. Goodwill and Other Intangible Assets As discussed in Note 7, 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 within Notes 2 and 7 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 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 as discussed in Note 8. 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. Quanta also has COLI policies related to its deferred compensation plan as further described in Note 15. These policies are carried at their cash surrender value, which is considered their fair value. The level of input used for these fair value measurements is Level 2. 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 December 31, 2021 and 2020, as all values were based on unadjusted quoted prices for identical assets in an active market that Quanta has the ability to access. Contingent Consideration Liabilities Financial instruments required to be measured at fair value on a recurring basis consist primarily of Quanta’s liabilities related to contingent consideration associated with certain acquisitions, payable in the event certain performance objectives are achieved by the acquired businesses during designated post-acquisition periods. The liabilities recorded represent the estimated fair values of future amounts payable to the former owners of the acquired businesses and are estimated by management based on entity-specific assumptions that are evaluated on an ongoing basis. The fair values of these liabilities described in Note 6 were primarily determined using a Monte Carlo simulation valuation methodology based on probability-weighted performance projections and other inputs, including a discount rate and an expected volatility factor for each acquisition. The expected volatility factor was 50.0% based on historical asset volatility of selected guideline public companies. Depending on contingent consideration payment terms, the present values of the estimated payments are discounted based on a risk-free rate and/or Quanta’s cost of debt and ranged from 0.04% to 3.9% and had a weighted average of 1.9% based on the fair value at the dates of the respective acquisitions. The fair value determinations incorporate significant inputs not observable in the market. Accordingly, the level of inputs used for these fair value measurements is the lowest level (Level 3). Significant changes in any of these assumptions could result in a significantly higher or lower potential liability. 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 10, was $2.49 billion at December 31, 2021, compared to a carrying value of $2.47 billion net of unamortized bond discount, underwriting discounts and deferred financing costs of $27.0 million. The fair value of the senior notes is based on the quoted market prices for the same issue and are categorized as Level 1 liabilities. See Note 10 for additional information regarding Quanta’s senior credit facility and the Senior Notes. |
Detail of Certain Accounts
Detail of Certain Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Detail of Certain Accounts | DETAIL OF CERTAIN ACCOUNTS: Cash and Cash Equivalents Amounts related to Quanta’s cash and cash equivalents based on geographic location of the bank accounts were as follows (in thousands): December 31, 2021 2020 Cash and cash equivalents held in domestic bank accounts $ 205,781 $ 156,122 Cash and cash equivalents held in foreign bank accounts 23,316 28,498 Total cash and cash equivalents $ 229,097 $ 184,620 Cash consisting of interest-bearing demand deposits is carried at cost, which approximates fair value. Quanta considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents, which are carried at fair value. At December 31, 2021 and 2020, cash equivalents were $140.0 million and $98.0 million and consisted primarily of money market investments and money market mutual funds and are discussed further in Note 17. 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): December 31, 2021 2020 Cash and cash equivalents held by domestic joint ventures $ 21,828 $ 7,714 Cash and cash equivalents held by foreign joint ventures 3,461 3,973 Total cash and cash equivalents held by joint ventures 25,289 11,687 Cash and cash equivalents held by captive insurance company 133,302 85,014 Cash and cash equivalents not held by joint ventures or captive insurance company 70,506 87,919 Total cash and cash equivalents $ 229,097 $ 184,620 Property and Equipment Property and equipment consisted of the following (in thousands): Estimated Useful December 31, Lives in Years 2021 2020 Land N/A $ 86,013 $ 69,389 Buildings and leasehold improvements 5-30 318,499 249,106 Operating machinery, equipment and vehicles 1-25 2,603,149 2,297,120 Office equipment, furniture and fixtures and information technology systems 3-10 259,776 244,113 Construction work in progress N/A 91,502 20,900 Finance lease assets and rental purchase options (see Note 11) 5-20 64,256 52,160 Property and equipment, gross 3,423,195 2,932,788 Less — Accumulated depreciation and amortization (1,503,498) (1,372,132) Property and equipment, net of accumulated depreciation $ 1,919,697 $ 1,560,656 Depreciation expense related to property and equipment is recognized on a straight-line basis over the estimated useful lives of the assets and was $255.5 million, $225.3 million and $218.1 million for the years ended December 31, 2021, 2020 and 2019. Additionally, Quanta recorded asset impairment charges of $5.7 million during the year ended December 31, 2021 related to certain equipment that was not utilized in Quanta’s core operations, some of which was sold in October 2021 and the remainder of which was classified as assets held for sale as of December 31, 2021. Quanta also recorded asset impairment charges of $8.3 million during the year ended December 31, 2020 related to the exit of its Latin American operations and due to the planned sale of certain equipment and asset impairment charges of $13.9 million during the year ended December 31, 2019 related to the winding down and exit of certain oil-influenced operations and assets, the replacement of an internally-developed software application and the planned sale and exit of certain foreign operations and assets. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following (in thousands): December 31, 2021 2020 Accounts payable, trade $ 1,251,118 $ 798,023 Accrued compensation and related expenses 547,161 378,002 Other accrued expenses 456,392 333,769 Accounts payable and accrued expenses $ 2,254,671 $ 1,509,794 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2021 2020 2019 Accounts and notes receivable $ (248,452) $ 71,058 $ (214,580) Contract assets (331,946) 153,832 (12,317) Inventories 1,418 9,860 52,168 Prepaid expenses and other current assets (6,503) 83,518 (60,475) Accounts payable and accrued expenses and other non-current liabilities 95,829 115,569 39,419 Contract liabilities 47,163 (84,370) 174,230 Other, net (1) (15,191) (22,098) (135,250) Net change in operating assets and liabilities, net of non-cash transactions $ (457,682) $ 327,369 $ (156,805) (1) The amount for the year ended December 31, 2019 includes the payment of $87 million of on-demand advance payment bonds and $25 million of on-demand performance bonds exercised in connection with the terminated telecommunications project in Peru. See Legal Proceedings — Peru Project Dispute in Note 16 for additional information on this matter. Reconciliations of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of such amounts shown in the statements of cash flows are as follows (in thousands): December 31, 2021 2020 2019 2018 Cash and cash equivalents $ 229,097 $ 184,620 $ 164,798 $ 78,687 Restricted cash included in “Prepaid expenses and other current assets” 1,836 1,275 4,026 3,286 Restricted cash included in “Other assets, net” 954 913 921 1,283 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 231,887 $ 186,808 $ 169,745 $ 83,256 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): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (104,434) $ (115,597) $ (119,357) Operating cash flows from finance leases $ (90) $ (108) $ (64) Financing cash flows from finance leases $ (1,001) $ (1,198) $ (1,835) Lease assets obtained in exchange for lease liabilities: Operating leases $ 73,713 $ 69,721 $ 96,550 Finance leases $ 1,044 $ 1,384 $ 691 Rental purchase option assets obtained in exchange for rental purchase option liabilities $ 11,713 $ 35,734 $ 12,229 Additional supplemental cash flow information is as follows (in thousands): Year Ended December 31, 2021 2020 2019 Cash (paid) received during the period for - Interest paid $ (52,737) $ (32,142) $ (64,805) Income taxes paid $ (125,328) $ (231,186) $ (116,467) Income tax refunds $ 13,257 $ 18,119 $ 7,474 Accrued capital expenditures were $27.4 million and $11.3 million as of December 31, 2021 and 2020. The impact of these items has been excluded from Quanta’s capital expenditures in the accompanying consolidated statements of cash flows due to their non-cash nature. |
Basis of Presentation and Cer_2
Basis of Presentation and Certain Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements of Quanta include the accounts of Quanta Services, Inc. and its wholly-owned subsidiaries, which are also referred to as its operating companies. The consolidated financial statements also include the accounts of certain of Quanta’s investments in joint ventures, which are either consolidated or proportionately consolidated, as discussed in the following summary of significant accounting policies. Investments in affiliated entities in which Quanta does not have a controlling financial interest, but over which Quanta has significant influence, usually because Quanta holds a voting interest of between 20% and 50% 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. |
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. |
Inventories | Inventories consist primarily of parts and supplies held for use in the ordinary course of business, which are valued by Quanta at the lower of cost or net realizable value. Cost is determined by using either the first-in, first-out (FIFO) method or the average costing method. Inventories also include certain job specific materials not yet installed, which are valued using the specific identification method. |
Property and Equipment | Property and equipment are stated at cost, and depreciation is computed using the straight-line method, net of estimated salvage values, over the estimated useful lives of the assets. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Depreciation expense related to property and equipment is recognized on a straight-line basis over the estimated useful lives of the assets. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing equipment, are capitalized and depreciated over the adjusted remaining useful lives of the assets. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in selling, general and administrative expenses. Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be realizable. When an evaluation is required, the estimated future undiscounted cash flows associated with the asset group are compared to the asset group’s carrying amount to determine if an impairment is necessary. The effect of any impairment involves expensing the difference between the fair value of the asset group and its carrying amount in the period incurred. |
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 recorded goodwill in connection with certain of its historical acquisitions of businesses. Upon acquisition, these businesses were either combined into one of Quanta’s existing operating companies or managed on a stand-alone basis as an individual operating company. Quanta has organized its individual operating companies into segments for goodwill disclosure purposes. Goodwill is required to be measured for impairment at the reporting unit level, which represents the operating segment level or one level below the operating segment level for which discrete financial information is available. Quanta has determined that its individual operating companies 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. The assessment can be performed by first completing a qualitative assessment on none, some, or all of Quanta’s reporting units. Quanta can also bypass the qualitative assessment for any reporting unit in any period and proceed directly to a quantitative impairment test, and then resume the qualitative assessment in any subsequent period. Qualitative indicators that may trigger the need for annual or interim quantitative impairment testing include, among other things, deterioration in macroeconomic conditions; declining financial performance; deterioration in the operational environment; 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. If Quanta believes that, as a result of its qualitative assessment, it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. The quantitative test involves comparing the fair value of such reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recorded as a reduction to goodwill with a corresponding charge to “Asset impairment charges” in the consolidated statements of operations. The income tax effect associated with an impairment of tax-deductible goodwill is also considered in the measurement of the goodwill impairment. A goodwill impairment for any reporting unit is limited to the total amount of goodwill allocated to such reporting unit. Quanta generally determines the fair value of its reporting units using a weighted combination of the income approach (discounted cash flow method) and market multiple valuation techniques (market guideline transaction method and market guideline public company method), with greater weight placed on the discounted cash flow method because management believes this method results in the most appropriate calculation of fair value and reflects an expectation of market value as determined by a “held and used” model. Under the discounted cash flow method, Quanta determines fair value based on the estimated future cash flows for each reporting unit, discounted to present value using a risk-adjusted industry weighted average cost of capital, which reflects the overall level of inherent risk for each reporting unit and the rate of return an outside investor would expect to earn. Cash flow projections are derived from budgeted amounts (typically a one-year model) and subsequent period cash flows are developed for each reporting unit using growth rates that management believes are reasonably likely to occur. A terminal value is derived from a multiple of the reporting unit’s earnings before interest, taxes, depreciation and amortization (EBITDA). The EBITDA multiples for each reporting unit are based on observed purchase transactions for similar businesses adjusted for size, volatility and risk. Under the market guideline transaction and market guideline public company methods, Quanta determines the estimated fair value for each of its reporting units by applying transaction multiples and public company multiples, respectively, to each reporting unit’s projected and historical EBITDA average. The transaction multiples are based on observed purchase transactions for similar businesses adjusted for size, volatility and risk. The public company multiples are based on peer group multiples adjusted for size, volatility and risk. For the market guideline public company method, Quanta adds a reasonable control premium, which is estimated as the premium that would be appropriate to convert the reporting unit value to a controlling interest basis. Other Intangible Assets 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 fair value of customer relationships is estimated as of the date a business is acquired based on the value-in-use concept utilizing the income approach, specifically the multi-period excess earnings method. This method discounts to present value the projected cash flows attributable to the customer relationships, with consideration given to customer contract renewals and estimated customer attrition rates. Quanta values backlog for acquired businesses as of the acquisition date based upon the contractual nature of the backlog within each service line, discounted to present value. The values of trade names and curriculum are estimated using the relief-from-royalty method of the income approach, which is based on the assumption that in lieu of ownership, a company would be willing to pay a royalty for use of the trade name or curriculum. The value of a non-compete agreement is estimated based on the difference between the present value of the prospective cash flows with the agreement in place and the present value of the |
Leases | Lease liabilities are recognized as the present value of the future minimum lease payments over the lease term as of the commencement date. Lease assets are recognized as the present value of future minimum lease payments over the lease term as of the commencement date, plus any initial direct costs incurred and lease payments made, less any lease incentives received. Quanta determines if an arrangement contains a lease at inception. If an arrangement is considered a lease, Quanta determines at the commencement date whether the lease is an operating or finance lease. Finance leases are leases that meet any of the following criteria: the lease transfers ownership of the underlying asset at the end of the lease term; the lessee is reasonably certain to exercise an option to purchase the underlying asset; the lease term is for the major part of the remaining economic life of the underlying asset (except when the commencement date falls at or near the end of such economic life); the present value of the sum of the lease payments and any additional residual value guarantee by the lessee equals or exceeds substantially all of the fair value of the underlying asset; or the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. A lease that does not meet any of these criteria is considered an operating lease. After the commencement date, lease cost for an operating lease is recognized over the remaining lease term on a straight-line basis, while lease cost for a finance lease is based on the depreciation of the lease asset and interest on the lease liability. The terms of Quanta’s lease arrangements vary, and certain leases include one or more of the following: renewal option(s), a cancellation option, a residual value guarantee, a purchase option or an escalation clause. An option to extend or terminate a lease is accounted for when assessing a lease term when it is reasonably certain that Quanta will exercise such option. Quanta has made a policy election to classify leases with an initial lease term of 12 months or less as short-term leases, and these leases are not recorded in the accompanying consolidated balance sheets unless the lease contains a purchase option that is reasonably certain to be exercised. Lease cost related to short-term leases is recognized on a straight-line basis over the lease term. Determinations with respect to lease term (including any extension thereof), discount rate, variable lease cost and future minimum lease payments require the use of judgment based on the facts and circumstances related to each lease. Quanta considers various factors, including economic incentives and penalties and business need, to determine the likelihood that a renewal option will be exercised. Unless a renewal option is reasonably certain to be exercised, which is typically at Quanta’s sole discretion, the initial non-cancelable lease term is used. Quanta generally uses its incremental borrowing rates to determine the present value of future minimum lease payments. |
Investments in Affiliates and Other | In the normal course of business, Quanta enters into various types of investment arrangements, each having unique terms and conditions. These investments may include equity interests held by Quanta in business entities, including general or limited partnerships, contractual joint ventures, or other forms of equity or profit participation. These investments may also include Quanta’s participation in different financing structures, such as the extension of loans to project-specific entities, the acquisition of convertible notes issued by project specific entities, or other strategic financing arrangements. Quanta also enters into strategic partnerships with customers and infrastructure investors to provide fully integrated infrastructure solutions on certain projects, including planning and feasibility analyses, engineering, design, procurement, construction and project operation and maintenance. These projects include public-private partnerships and concessions, along with private infrastructure projects such as build, own, operate (and in some cases transfer) and build-to-suit arrangements. Quanta determines whether investments involve a variable interest entity (VIE) based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if Quanta is the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb significant losses of, or the right to receive significant benefits from, the VIE. When Quanta is deemed to be the primary beneficiary, the VIE is consolidated and the other party’s equity interest in the VIE is accounted for as a non-controlling interest. In cases where Quanta determines that it has an undivided interest in the assets, liabilities, revenues and profits of an unincorporated VIE (e.g., a general partnership interest), such amounts are consolidated on a basis proportional to Quanta’s ownership interest in the unincorporated entity. Investments in entities of which Quanta is not the primary beneficiary, but over which Quanta has the ability to exercise significant influence, are accounted for using the equity method of accounting. Equity method investments are carried at original cost adjusted for Quanta’s proportionate share of the investees’ income, losses and distributions. Quanta’s share of net income or losses of these investments is included within operating income in the accompanying 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, net” below operating income in the accompanying consolidated statements of operations. Equity method investments are reviewed for impairment by assessing whether there has been a decline in the fair value of the investment below the carrying amount and whether any such decline is other-than-temporary. In making this determination, factors such as the ability to recover the carrying amount of the investment and the inability of the investee to sustain its earnings capacity are evaluated in determining whether a loss in value should be recognized. Any impairment losses are included in “Other income, net” in the accompanying consolidated statement of operations. |
Income Taxes | Quanta follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded based on future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the underlying assets or liabilities are recovered or settled. Quanta regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain, including in connection with changes in tax laws. The estimation of required valuation allowances includes estimates of future taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Quanta considers projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income differs from these estimates, Quanta may not realize deferred tax assets to the extent estimated. Quanta records reserves for income taxes related to certain tax positions when management considers it more likely than not that additional taxes may be due in excess of amounts reflected on income tax returns filed. When recording these reserves, Quanta assumes that taxing authorities have full knowledge of the position and all relevant facts. Quanta continually reviews exposure to additional tax obligations, and as further information is known or events occur, changes in tax reserves may be recorded. Quanta adjusts its tax contingencies accrual and income tax provision in the period in which matters are effectively settled with tax authorities at amounts different from our established accrual, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and included in the provision for income taxes. |
Earnings Per Share | Basic and diluted earnings per share attributable to common stock are computed using the weighted average number of shares of common stock outstanding during the applicable period. Additionally, unvested stock-based awards that contain non-forfeitable rights to dividends or dividend equivalents (participating securities) have been included in the calculation of basic and diluted earnings per share attributable to common stock for the portion of the periods that the awards were outstanding. 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. |
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 indirectly through its wholly-owned captive insurance company, which reimburses claims up to the amount of the applicable deductible amount of its third-party insurance programs. In connection with Quanta’s casualty insurance programs, Quanta is required to issue letters of credit to secure its obligations. 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 maintains 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.Losses under all of these insurance programs are accrued based upon Quanta’s estimate of the ultimate liability for claims reported and an estimate of claims incurred but not reported, with assistance from third-party actuaries. These insurance liabilities are difficult to assess and estimate due to unknown factors, including the severity of an injury, the extent of damage, the determination of Quanta’s liability in proportion to other parties and the number of incidents not reported. The accruals are based upon known facts and historical trends, and management believes such accruals are adequate. |
Collective Bargaining Agreements | Certain of Quanta’s operating companies are parties to collective bargaining agreements with unions that represent certain of their employees. The collective bargaining agreements expire at various times and have typically been renegotiated and renewed on terms similar to those in the expiring agreements. The agreements require the operating companies to pay specified wages, provide certain benefits to union employees and contribute certain amounts to multiemployer pension plans and employee benefit trusts pursuant to specified rates. Quanta’s multiemployer pension plan contribution rates generally are made to the plans on a “pay-as-you-go” basis based on its union employee payrolls. The location and number of union employees that Quanta employs at any given time and the plans in which they may participate vary depending on Quanta’s need for union resources in connection with its ongoing projects. Therefore, Quanta is unable to accurately predict its union employee payroll and the resulting multiemployer pension plan contribution obligations for future periods. |
Stock-Based Compensation | Quanta recognizes compensation expense for restricted stock units (RSUs) and performance stock units (PSUs) to be settled in common stock based on the fair value of the awards, net of estimated forfeitures. The fair value of RSU awards is determined based on the number of units granted and the closing price of Quanta’s common stock on the date of grant. The grant date fair value of the PSUs is determined as follows: (i) for the portion of the awards based on company performance metrics, by multiplying the number of units granted by the closing price of Quanta’s common stock on the date of grant and (ii) for the portion of the awards based on relative total shareholder return compared to a defined peer group, by utilizing a Monte Carlo simulation valuation methodology. An estimate of future forfeitures, based on historical data, is also utilized to determine compensation expense for the period, and these forfeiture estimates are subject to change and may impact the value that will ultimately be recognized as compensation expense. The resulting compensation expense for PSU and time-based RSU awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period, and the resulting compensation expense for performance-based RSU awards is recognized using the graded vesting method over the requisite service period. The compensation expense related to outstanding PSUs can also vary from period to period based on changes in forecasted achievement of established performance goals and the total number of shares of common stock that Quanta anticipates will be issued upon vesting of such PSUs. Payments made by Quanta to satisfy employee tax withholding obligations associated with awards settled in common stock are classified as financing cash flows.Compensation expense associated with liability-based awards, such as RSUs that are expected to or may settle in cash, is recognized based on a remeasurement of the fair value of the award at the end of each reporting period. Upon settlement, the holders receive for each RSU an amount in cash equal to the fair market value of one share of Quanta common stock on the settlement date, as specified in the applicable award agreement. |
Functional Currency and Translation of Financial Statements | The U.S. dollar is the functional currency for the majority of Quanta’s operations, which are primarily located within the United States. The functional currency for Quanta’s foreign operations, which are primarily located in Canada and Australia, is typically the currency of the country where the foreign operating company is located and transacts the majority of its activities, including billings, financing, payroll and other expenditures. When preparing its consolidated financial statements, Quanta translates the financial statements of its foreign operating companies from their functional currency into U.S. dollars. Statements of operations, comprehensive income and cash flows are translated at average monthly rates, while balance sheets are translated at month-end exchange rates. The translation of the balance sheet results in translation gains or losses that are included as a separate component of equity under “Accumulated other comprehensive income (loss).” Gains and losses arising from transactions not denominated in functional currencies are included within “Other income, net” in the accompanying consolidated statements of operations. |
Comprehensive Income | Components of comprehensive income include all changes in equity during a period, except those resulting from changes in Quanta’s capital-related accounts. Quanta records other comprehensive income (loss) for foreign currency translation adjustments related to its foreign operations and for other revenues, expenses, gains and losses that are included in comprehensive income but excluded from net income. |
Litigation Costs and Reserves | Quanta records reserves when the likelihood of incurring a loss is probable and the amount of loss can be reasonably estimated. Costs incurred for litigation are expensed as incurred. |
Adoption of New Accounting Pronouncements and Accounting Standards Not Yet Adopted | Adoption of New Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (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 has not had a material impact on Quanta’s consolidated financial statements during 2021. In January 2020, FASB issued an update that clarified the applicable guidance for measurement of the fair value of equity and cost method investments when there is a change in the level of ownership or degree of influence. Quanta adopted this update effective January 1, 2021 and will prospectively apply this update. New Accounting Pronouncement Not Yet Adopted |
Acquisitions | These allocations require significant use of estimates and are based on information that was available to management at the time these consolidated financial statements were prepared. Quanta uses a variety of information to estimate fair values, including quoted market prices, carrying amounts and valuation techniques such as discounted cash flows. When deemed appropriate, third-party appraisal firms are engaged to assist in fair value determination of fixed assets, intangible assets and certain other assets and liabilities |
Treasury Stock | General Treasury stock is recorded at cost. Under Delaware law, treasury stock is not counted for quorum purposes or entitled to vote. |
Revenue Recognition | Quanta’s services include the design, new construction, upgrade and repair and maintenance of infrastructure primarily in the utility, renewable energy, communications and pipeline and energy industries. These 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. All of Quanta’s revenues are recognized from contracts with its customers. In addition to the considerations described below, revenue is not recognized unless collectability under the contract is considered probable, the contract has commercial substance and the contract has been approved. Additionally, the contract must contain payment terms, as well as the rights and commitments of both parties. Performance Obligations A performance obligation is a promise in a contract with a customer to transfer a distinct good or service. Most of Quanta’s contracts are considered to have a single performance obligation whereby Quanta is required to integrate complex activities and equipment into a deliverable for a customer. For contracts with multiple performance obligations, Quanta allocates a portion of the total transaction price to each performance obligation using its best estimate of the standalone selling price of the distinct good or service associated with each performance obligation. Standalone selling price is estimated using the expected costs plus a margin. At December 31, 2021 and 2020, the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations was approximately $5.90 billion and $3.99 billion, with 81.8% and 71.2% 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. Recognition of Revenue Upon Satisfaction of Performance Obligations A transaction price is determined for each contract, and that amount is allocated to each performance obligation within the contract and recognized as revenue when, or as, the performance obligation is satisfied. Quanta recognizes certain revenue over time as it performs its obligations because there is a continuous transfer of control of the deliverable to the customer. Under unit-price contracts with an insignificant amount of partially completed units, Quanta recognizes revenue as units are completed based on contractual pricing amounts. Under unit-price contracts with more than an insignificant amount of partially completed units and fixed price contracts, Quanta recognizes revenues as performance obligations are satisfied over time, with the percentage completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation. Under cost-plus contracts, Quanta recognizes revenue on an input basis, as labor hours are incurred, materials are utilized and services are performed. Under contracts where Quanta has a right to consideration in an amount that directly corresponds to the value of completed performance, Quanta recognizes revenue in such amount and does not include such performance as a remaining performance obligation. Also, contract consideration is not adjusted for a significant financing component if payment is expected to be collected less than one year from when the services are performed. Contract costs include all direct materials, labor and subcontract costs and indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. The majority of the materials associated with Quanta’s work are owner-furnished, and therefore not included in contract revenues and costs. Additionally, Quanta may incur incremental costs to obtain certain contracts, such as selling and marketing costs, bid and proposal costs, sales commissions, and legal fees or initial set-up or mobilization costs, certain of which can be capitalized. Such costs were not material during the years ended December 31, 2021, 2020 and 2019. Contract Estimates Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors, including unforeseen or changed circumstances not included in Quanta’s cost estimates or covered by its contracts. The estimating process is based on the professional knowledge and experience of Quanta’s project estimators, project managers and finance professionals. 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 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. These factors, along with other risks inherent in performing services under fixed price contracts, are routinely evaluated by management. Any changes in estimates could result in changes to profitability or losses associated with the related performance obligations. For example, estimated costs for a performance obligation may increase from an original estimate, and contractual provisions may not allow for adequate compensation or reimbursement for such additional costs. Changes in estimated revenues, costs and profit are recorded in the period they are determined to be probable and can be reasonably estimated. Contract losses are recognized in full when they are determined to be probable and can be reasonably estimated. Changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. Quanta determines the probability that costs associated with change orders and claims will be recovered based on, among other things, contractual entitlement, past practices with the customer, specific discussions or preliminary negotiations with the customer and verbal approvals by the customer. Quanta recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reliably estimated. Most of Quanta’s change orders are for services that are not distinct from an existing contract and are accounted for as part of an existing contract on a cumulative catch-up basis. Quanta accounts for a change order as a separate contract if the additional goods or services are distinct from and increase the scope of the contract, and the price of the contract increases by an amount commensurate to Quanta’s standalone selling price for the additional goods or services. Variable consideration amounts, including performance incentives, early pay discounts and penalties, may also cause changes in contract estimates. The amount of variable consideration is estimated based on the most likely amount that is deemed probable of realization. Contract consideration is adjusted for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur once the uncertainty related to the variable consideration is resolved. Changes in 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. Quanta adopted the new accounting standard for measuring credit losses effective January 1, 2020 utilizing the transition method that allows recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Quanta’s financial results for reporting periods beginning on or after January 1, 2020 are presented under the new standard, while financial results for prior periods continue to be reported in accordance with the prior standard and Quanta’s historical accounting policy. The net cumulative effect due to the adoption of the new standard was a $3.8 million reduction to retained earnings as of January 1, 2020, which represented a $5.1 million increase to allowance for credit losses, net of $1.3 million in deferred income taxes. The adjustment was based on an estimate of expected lifetime credit losses for financial instruments, primarily accounts receivable and contract assets. Although the adoption of the new standard did not have a material impact on Quanta’s consolidated financial statements at the date of adoption, expected credit losses could change as a result of changes in credit loss experience, changes to specific risk characteristics of Quanta’s portfolio of financial assets or changes to management’s expectations of future economic conditions that affect the collectability of Quanta’s financial assets. The assessment of the allowance for credit losses involves certain judgments and estimates. Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Expected credit losses are estimated by evaluating trends in historical write-off experience and applying historical loss ratios to pools of financial assets with similar risk characteristics. Quanta has determined that it has one pool for the purpose of calculating its historical credit loss experience. Quanta’s historical loss ratio and its determination of risk pool, which are used to calculate expected credit losses, may be adjusted for changes in customer credit concentrations within its portfolio of financial assets, its customers’ ability to pay, and other considerations, such as economic and market changes, changes to 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 uncertainties and challenges in the energy market and overall economy caused by the COVID-19 pandemic. Additional allowance for credit losses is established for financial asset balances with specific customers where collectability has been determined to be improbable based on customer specific facts and circumstances. 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. |
Segment Information | SEGMENT INFORMATION: Beginning with the three months ended December 31, 2021, Quanta reports results under three reportable segments: (1) Electric Power Infrastructure Solutions, (2) Renewable Energy Infrastructure Solutions and (3) Underground Utility and Infrastructure Solutions. The Renewable Energy Infrastructure Solutions segment was added primarily due to the acquisition of Blattner. In conjunction with this change, certain prior period amounts have been recast to conform to this new segment reporting structure. 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 companies in each of its end user markets. Quanta’s entrepreneurial business model allows multiple operating companies to serve the same or similar customers and to provide a range of services across end user markets. Quanta’s operating companies are organized into one of three reportable segments. Reportable segment information, including revenues and operating income by type of work, is gathered from each operating company for the purpose of evaluating segment performance in support of Quanta’s market strategies. Classification of operating company revenues by type of work for segment reporting purposes can require judgment on the part of management. Quanta’s operating companies 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, integrated operations and common administrative support for Quanta’s operating companies require that certain allocations be made to determine segment profitability, including allocations of corporate shared and indirect operating costs as well as general and administrative costs. Certain corporate costs are not allocated, including facility costs, acquisition and integration costs, non-cash stock-based compensation, amortization related to intangible assets, asset impairment related to goodwill and intangible assets and change in fair value of contingent consideration liabilities. |
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 As discussed in Note 7, 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 within Notes 2 and 7 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 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 as discussed in Note 8. 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. Quanta also has COLI policies related to its deferred compensation plan as further described in Note 15. These policies are carried at their cash surrender value, which is considered their fair value. The level of input used for these fair value measurements is Level 2. 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 December 31, 2021 and 2020, as all values were based on unadjusted quoted prices for identical assets in an active market that Quanta has the ability to access. Contingent Consideration Liabilities Financial instruments required to be measured at fair value on a recurring basis consist primarily of Quanta’s liabilities related to contingent consideration associated with certain acquisitions, payable in the event certain performance objectives are achieved by the acquired businesses during designated post-acquisition periods. The liabilities recorded represent the estimated fair values of future amounts payable to the former owners of the acquired businesses and are estimated by management based on entity-specific assumptions that are evaluated on an ongoing basis. The fair values of these liabilities described in Note 6 were primarily determined using a Monte Carlo simulation valuation methodology based on probability-weighted performance projections and other inputs, including a discount rate and an expected volatility factor for each acquisition. The expected volatility factor was 50.0% based on historical asset volatility of selected guideline public companies. Depending on contingent consideration payment terms, the present values of the estimated payments are discounted based on a risk-free rate and/or Quanta’s cost of debt and ranged from 0.04% to 3.9% and had a weighted average of 1.9% based on the fair value at the dates of the respective acquisitions. The fair value determinations incorporate significant inputs not observable in the market. Accordingly, the level of inputs used for these fair value measurements is the lowest level (Level 3). Significant changes in any of these assumptions could result in a significantly higher or lower potential liability. Long-Term Debt |
Revenue Recognition and Relat_2
Revenue Recognition and Related Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [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 by contract type (in thousands): Year Ended December 31, 2021 2020 2019 By primary geographic location: United States $ 11,068,493 85.3 % $ 9,618,951 85.8 % $ 10,190,684 84.0 % Canada 1,557,117 12.0 % 1,252,365 11.2 % 1,436,720 11.9 % Australia 221,038 1.7 % 200,664 1.8 % 187,915 1.6 % Others 133,565 1.0 % 130,692 1.2 % 296,834 2.5 % Total revenues $ 12,980,213 100.0 % $ 11,202,672 100.0 % $ 12,112,153 100.0 % Year Ended December 31, 2021 2020 2019 By contract type: Unit-price contracts $ 5,029,100 38.7 % $ 4,172,363 37.2 % $ 4,193,295 34.6 % Cost-plus contracts 3,102,075 23.9 % 2,649,770 23.7 % 3,304,161 27.3 % Fixed price contracts 4,849,038 37.4 % 4,380,539 39.1 % 4,614,697 38.1 % Total revenues $ 12,980,213 100.0 % $ 11,202,672 100.0 % $ 12,112,153 100.0 % |
Contract Assets and Liabilities | Contract assets and liabilities consisted of the following (in thousands): December 31, 2021 December 31, 2020 December 31, 2019 Contract assets $ 803,453 $ 453,832 $ 601,268 Contract liabilities $ 802,872 $ 528,864 $ 606,146 |
Composition of the Allowance for Credit Losses | Activity in Quanta’s allowance for credit losses consisted of the following (in thousands): Year Ended December 31, 2021 2020 2019 Balance at beginning of year $ 16,546 $ 9,398 $ 5,839 Cumulative effect of adoption of new credit loss standard — 5,067 — Provision for credit losses 34,890 3,656 11,249 Direct write-offs charged against the allowance (1,687) (1,575) (7,690) Balance at end of year $ 49,749 $ 16,546 $ 9,398 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summarized Financial Information | Summarized financial information for Quanta’s reportable segments is presented in the following table (in thousands): Year Ended December 31, 2021 2020 2019 Revenues: Electric Power Infrastructure Solutions (1) $ 7,624,240 $ 6,468,192 $ 6,346,837 Renewable Energy Infrastructure Solutions 1,825,259 1,305,151 775,000 Underground Utility and Infrastructure Solutions 3,530,714 3,429,329 4,990,316 Consolidated revenues $ 12,980,213 $ 11,202,672 $ 12,112,153 Operating income (loss) : Electric Power Infrastructure Solutions (2)(3) $ 865,409 $ 648,405 $ 554,824 Renewable Energy Infrastructure Solutions 181,908 177,920 36,353 Underground Utility and Infrastructure Solutions 150,147 170,074 332,011 Corporate and non-allocated costs (533,943) (385,028) (368,314) Consolidated operating income $ 663,521 $ 611,371 $ 554,874 Depreciation: Electric Power Infrastructure Solutions $ 141,093 $ 112,663 $ 101,299 Renewable Energy Infrastructure Solutions 14,020 9,185 6,996 Underground Utility and Infrastructure Solutions 83,720 85,981 90,953 Corporate and non-allocated costs 16,696 17,427 18,859 Consolidated depreciation $ 255,529 $ 225,256 $ 218,107 ( 1 ) Includes $63.2 million related to Latin American operations for the year ended December 31, 2019, which included the reversal of $48.8 million of revenues in the year ended December 31, 2019 in connection with the terminated telecommunications project in Peru, a portion of which related to prior periods. (2) Includes $74.0 million and $85.7 million of operating losses related to Latin American operations for the years ended December 31, 2020 and 2019. Included in the Latin American operating loss for the year ended December 31, 2019 was a $79.2 million charge associated with the termination of the large telecommunications project in Peru, which included the $48.8 million decrease in revenues described above and a $30.4 million increase in cost of services. See Legal Proceedings — Peru Project Dispute in Note 16 for additional information on this matter. As of December 31, 2020, Quanta had substantially completed the exit of its operations in Latin America. (3) Includes equity in earnings of integral unconsolidated affiliates of $44.1 million and $11.3 million for the years ended December 31, 2021 and 2020. These affiliates are considered to be operationally integral to the operations of Quanta and primarily consists of equity in earnings related to Quanta’s equity interest in LUMA. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Aggregate Consideration Paid or Payable and Allocation of 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 for acquisitions completed in the years shown (in thousands). 2021 Blattner All Others 2020 Consideration: Cash paid or payable $ 2,372,528 $ 328,846 $ 359,624 Value of Quanta common stock issued 345,422 16,922 57,119 Contingent consideration 125,632 — 2,250 Fair value of total consideration transferred or estimated to be transferred $ 2,843,582 $ 345,768 $ 418,993 Cash and cash equivalents $ 171,950 $ 9,910 $ 29,221 Accounts receivable 411,835 63,032 74,492 Contract assets 13,622 8,322 8,919 Other current assets 57,803 6,334 23,877 Property and equipment 179,530 71,735 143,277 Other assets 191 229 14 Identifiable intangible assets 1,425,000 105,128 96,826 Current maturities of long-term debt and short-term debt (2,304) — (3,307) Accounts payable and accrued liabilities (478,521) (28,662) (31,804) Contract liabilities (227,040) (384) (3,750) Deferred tax liabilities, net — (2,063) (3,178) Other long-term liabilities (7,764) — — Total identifiable net assets 1,544,302 233,581 334,587 Goodwill 1,299,280 112,187 84,406 Fair value of net assets acquired $ 2,843,582 $ 345,768 $ 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 2021 and 2020 as of the acquisition dates and the related weighted average amortization periods by type (in thousands, except for weighted average amortization periods, which are in years). 2021 Blattner All Other 2020 Estimated Fair Value Weighted Average Amortization Period in Years Estimated Fair Value Weighted Average Amortization Period in Years Estimated Fair Value Weighted Average Amortization Period in Years Customer relationships $ 1,045,000 7.0 $ 77,293 6.7 $ 81,154 6.1 Backlog 130,000 0.7 6,436 1.2 4,022 1.4 Trade names 250,000 15.0 5,698 14.9 7,654 14.4 Non-compete agreements — N/A 6,673 5.0 3,996 5.0 Patented rights, developed technology, and process certifications — N/A 9,028 3.5 — N/A Total intangible assets subject to amortization $ 1,425,000 7.8 $ 105,128 6.5 $ 96,826 6.5 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | 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 years ended December 31, 2021, 2020 and 2019 as of the respective acquisition dates: 2021 2020 Range Weighted Average Range Weighted Average Discount rates 18% to 26% 18% 19% to 25% 20% Customer attrition rates 8% to 30% 10% 10% to 43% 13% |
Aggregate Fair Values of Outstanding and Unearned Contingent Consideration Liabilities | Aggregate fair values of these outstanding contingent consideration liabilities and their classification in the accompanying consolidated balance sheets were as follows (in thousands): December 31, 2021 December 31, 2020 Accounts payable and accrued expenses $ 2,591 $ 3,466 Insurance and other non-current liabilities 140,482 7,503 Total contingent consideration liabilities $ 143,073 $ 10,969 |
Unaudited Supplemental Pro Forma Results of Operations | The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in 2021, 2020 and 2019, have been provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future. Future results may vary significantly from the results reflected in the following pro forma financial information because of future events and transactions, as well as other factors (in thousands, except per share amounts). Year Ended December 31, 2021 2020 2019 Revenues $ 15,503,994 $ 14,082,275 $ 12,844,508 Gross profit $ 2,511,503 $ 2,226,703 $ 1,761,317 Selling, general and administrative expenses $ (1,353,780) $ (1,208,909) $ (1,027,254) Amortization of intangible assets $ (311,208) $ (404,014) $ (95,185) Net income $ 624,506 $ 421,105 $ 434,593 Net income attributable to common stock $ 618,479 $ 414,742 $ 429,822 Earnings per share attributable to common stock: Basic $ 4.31 $ 2.85 $ 2.92 Diluted $ 4.18 $ 2.77 $ 2.89 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Quanta's Goodwill | A summary of changes in Quanta’s goodwill by segment is as follows (in thousands): Electric Power Infrastructure Solutions Renewable Energy Infrastructure Solutions Segment Underground Utility and Infrastructure Solutions Total Balance at December 31, 2019: Goodwill $ 1,365,163 $ — $ 753,938 $ 2,119,101 Accumulated impairment — — (96,426) (96,426) 1,365,163 — 657,512 2,022,675 Goodwill related to acquisitions completed in 2020 79,889 — 6,308 86,197 Purchase price allocation adjustments 1,730 — 19 1,749 Foreign currency translation adjustments 2,992 — 7,401 10,393 Balance at December 31, 2020: Goodwill 1,449,774 — 768,868 2,218,642 Accumulated impairment — — (97,628) (97,628) 1,449,774 — 671,240 2,121,014 Goodwill related to acquisitions completed in 2021 100,121 1,299,280 12,066 1,411,467 Operating company reorganizations (161,912) 161,912 — — Purchase price allocation adjustments (1,791) — — (1,791) Foreign currency translation adjustments 1,226 — (3,030) (1,804) Balance at December 31, 2021: Goodwill 1,387,418 1,461,192 777,136 3,625,746 Accumulated impairment — — (96,860) (96,860) $ 1,387,418 $ 1,461,192 $ 680,276 $ 3,528,886 |
Significant Estimates Used by Management in Determining Fair Values of Intangible Assets | The following table presents the significant estimates used by management in determining the fair values of Quanta’s reporting units for which a quantitative assessment was performed at December 31, 2021, 2020 and 2019: 2021 2020 2019 Years of cash flows before terminal value 5 years 5 years 5 years Weighted average cost of capital 12.0% 12.5% to 13.5% 12.5% Transaction multiple(s) applied to EBITDA 7.0 6.0 to 9.0 6 Guideline public company multiple(s) applied to EBITDA N/A N/A 6.5 Five-year revenue compounded annual growth rate(s) 9% to 26% -8% to 26% -9% Weighting of three methods: Discounted cash flows 100% 100% 70% Market multiple 0% 0% 15% Market capitalization 0% 0% 15% |
Other Intangible Assets | Quanta’s intangible assets and the remaining weighted average amortization periods related to its intangible assets subject to amortization were as follows (in thousands except for weighted average amortization periods, which are in years): As of December 31, 2021 As of December 31, 2020 Remaining Weighted Average Amortization Period in Years Intangible Accumulated Intangible Intangible Accumulated Intangible Customer relationships 6.4 $ 1,738,813 $ (379,417) $ 1,359,396 $ 616,875 $ (277,647) $ 339,228 Backlog 0.4 286,120 (192,140) 93,980 149,769 (145,476) 4,293 Trade names 14.5 357,103 (41,642) 315,461 101,533 (32,471) 69,062 Non-compete agreements 3.7 54,022 (41,409) 12,613 47,333 (36,973) 10,360 Patented rights, developed technology, and process certifications 3.0 31,520 (23,458) 8,062 22,486 (21,894) 592 Curriculum 6.4 13,100 (4,432) 8,668 12,233 (3,113) 9,120 Total intangible assets subject to amortization 7.4 2,480,678 (682,498) 1,798,180 950,229 (517,574) 432,655 Engineering license 3,000 — 3,000 3,000 — 3,000 Total intangible assets $ 2,483,678 $ (682,498) $ 1,801,180 $ 953,229 $ (517,574) $ 435,655 |
Estimated Future Aggregate Amortization Expense of Intangible Assets | The estimated future aggregate amortization expense of intangible assets subject to amortization as of December 31, 2021 is set forth below (in thousands): Year Ending December 31: 2022 $ 347,276 2023 246,919 2024 233,073 2025 218,532 2026 211,648 Thereafter 540,732 Total $ 1,798,180 |
Per Share Information (Tables)
Per Share Information (Tables) | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2021 2020 2019 Amounts attributable to common stock: Net income attributable to common stock $ 485,956 $ 445,596 $ 402,044 Weighted average shares: Weighted average shares outstanding for basic earnings per share attributable to common stock 140,824 141,380 145,710 Effect of dilutive unvested non-participating stock-based awards 4,549 3,867 1,824 Weighted average shares outstanding for diluted earnings per share attributable to common stock 145,373 145,247 147,534 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt Obligations | Quanta’s long-term debt obligations consisted of the following (in thousands): December 31, 2021 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 1,199,841 148,508 Other long-term debt 64,800 46,981 Finance leases 2,546 2,228 Unamortized discount and debt issuance costs related to senior notes and term loan (29,295) (12,892) Total long-term debt obligations 3,737,892 1,184,825 Less — Current maturities of long-term debt 13,418 10,531 Total long-term debt obligations, net of current maturities $ 3,724,474 $ 1,174,294 |
Current Maturities of Long-Term Debt and Short-Term Debt | Quanta’s current maturities of long-term debt and short-term debt consisted of the following (in thousands): December 31, 2021 2020 Short-term debt $ 15,748 $ 4,233 Current maturities of long-term debt 13,418 10,531 Current maturities of long-term debt and short-term debt $ 29,166 $ 14,764 |
Schedule of Maturities of Long-term Debt | As of December 31, 2021, principal payments required to be made during the next five years are set forth in the table below. The payments required under finance leases are provided in Note 11. 2022 $ 12,267 2023 $ 30,489 2024 $ 528,235 2025 $ 45,178 2026 $ 1,130,559 |
Schedule of Long-term Debt Instruments | 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 |
Information on Borrowings under the Credit Facility and Applicable Interest Rates | Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands): Year Ended December 31, 2021 2020 2019 Maximum amount outstanding under the senior credit facility $ 1,463,667 $ 2,023,326 $ 2,051,714 Average daily amount outstanding under the senior credit facility $ 591,114 $ 1,091,091 $ 1,553,499 Weighted-average interest rate of the senior credit facility 1.9 % 2.1 % 3.8 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Costs | The components of lease costs in the accompanying consolidated statements of operations are as follows (in thousands): Year Ended December 31, Lease cost Classification 2021 2020 2019 Finance lease cost: Amortization of lease assets Depreciation (1) $ 1,097 $ 1,234 $ 1,393 Interest on lease liabilities Interest and other financing expenses 90 107 64 Operating lease cost Cost of services and Selling, general and administrative expenses 104,668 116,672 121,767 Short-term and variable lease cost (2) Cost of services and Selling, general and administrative expenses 716,722 656,649 837,244 Total lease cost $ 822,577 $ 774,662 $ 960,468 (1) Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying 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. |
Components of Leases in the Balance Sheet | The components of leases in the accompanying consolidated balance sheets were as follows (in thousands): December 31, Lease type Classification 2021 2020 Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 240,605 $ 256,845 Finance lease assets Property and equipment, net of accumulated depreciation 2,415 2,370 Total lease assets $ 243,020 $ 259,215 Liabilities: Current: Operating Current portion of operating lease liabilities $ 78,251 $ 85,134 Finance Current maturities of long-term debt and short-term debt 1,156 846 Non-current: Operating Operating lease liabilities, net of current portion 170,427 178,822 Finance Long-term debt, net of current maturities 1,390 1,382 Total lease liabilities $ 251,224 $ 266,184 |
Future Minimum Lease Payments - Operating Leases | Future minimum lease payments for operating and finance leases were as follows (in thousands): As of December 31, 2021 Operating Leases Finance Leases Total 2022 $ 85,427 $ 1,185 $ 86,612 2023 63,890 907 64,797 2024 44,113 423 44,536 2025 30,638 137 30,775 2026 20,602 — 20,602 Thereafter 23,866 — 23,866 Total future minimum operating and finance lease payments 268,536 2,652 271,188 Less imputed interest (19,858) (106) (19,964) Total lease liabilities $ 248,678 $ 2,546 $ 251,224 |
Future Minimum Lease Payments - Finance Leases | Future minimum lease payments for operating and finance leases were as follows (in thousands): As of December 31, 2021 Operating Leases Finance Leases Total 2022 $ 85,427 $ 1,185 $ 86,612 2023 63,890 907 64,797 2024 44,113 423 44,536 2025 30,638 137 30,775 2026 20,602 — 20,602 Thereafter 23,866 — 23,866 Total future minimum operating and finance lease payments 268,536 2,652 271,188 Less imputed interest (19,858) (106) (19,964) Total lease liabilities $ 248,678 $ 2,546 $ 251,224 |
Other Information Related to Leases | The weighted average remaining lease terms and discount rates were as follows: As of December 31, 2021 2020 Weighted average remaining lease term (in years): Operating leases 4.25 4.28 Finance leases 2.57 3.06 Weighted average discount rate: Operating leases 3.7 % 4.2 % Finance leases 3.3 % 4.1 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of income before income taxes were as follows (in thousands): Year Ended December 31, 2021 2020 2019 Income before income taxes: Domestic $ 534,302 $ 632,791 $ 550,676 Foreign 88,599 (61,445) 21,611 Total $ 622,901 $ 571,346 $ 572,287 |
Provision for Income Taxes | The components of the provision for income taxes were as follows (in thousands): Year Ended December 31, 2021 2020 2019 Current: Federal $ 65,273 $ 134,538 $ 121,214 State 32,930 45,610 35,329 Foreign 6,644 (745) 16,848 Total current tax provision 104,847 179,403 173,391 Deferred: Federal 27,762 (46,251) 7,379 State (2,418) (3,850) (1,776) Foreign 727 (9,915) (13,522) Total deferred tax provision (benefit) 26,071 (60,016) (7,919) Total provision for income taxes $ 130,918 $ 119,387 $ 165,472 |
Effective Income Tax Rate Reconciliation | The actual income tax provision differed from the income tax provision computed by applying the U.S. federal statutory corporate rate to income before provision for income taxes as follows (in thousands): Year Ended December 31, 2021 2020 2019 Provision at the statutory rate $ 130,809 $ 119,983 $ 120,180 Increases (decreases) resulting from — State taxes 27,204 31,791 23,399 Valuation allowance on deferred tax assets 6,107 (31,138) 35,761 Employee per diems, meals and entertainment 3,569 10,680 13,817 Contingency reserves, net 844 (2,125) (3,173) Company-owned life insurance (6,969) — — Taxes on joint ventures (8,825) (3,466) (930) Foreign taxes (9,359) (7,268) (21,565) Stock-based compensation (21,271) (3,109) (1,863) Other 8,809 4,039 (154) Total provision for income taxes $ 130,918 $ 119,387 $ 165,472 |
Deferred Tax Assets and Liabilities and Net Deferred Income Tax Assets and Liabilities | The tax effects of these temporary differences, representing deferred tax assets and liabilities, result principally from the following (in thousands): December 31, 2021 2020 Deferred income tax liabilities: Property and equipment $ (278,303) $ (236,256) Goodwill (93,632) (85,467) Leased assets (76,728) (77,344) Customer holdbacks (32,661) (30,457) Other intangible assets — (4,438) Total deferred income tax liabilities (481,324) (433,962) Deferred income tax assets: Net operating loss carryforwards 78,947 82,817 Lease liabilities 76,608 76,826 Accruals and reserves 65,852 70,335 Stock and incentive compensation 50,772 36,590 Tax credits 39,826 42,202 Other intangible assets 19,110 — Deferred tax benefits on unrecognized tax positions 10,090 10,108 Other 7,535 9,617 Subtotal 348,740 328,495 Valuation allowance (41,308) (43,255) Total deferred income tax assets 307,432 285,240 Total net deferred income tax liabilities $ (173,892) $ (148,722) The net deferred income tax assets and liabilities comprised the following in the accompanying consolidated balance sheets (in thousands): December 31, 2021 2020 Deferred income taxes: Assets $ 17,206 $ 17,685 Liabilities (191,098) (166,407) Total net deferred income tax liabilities $ (173,892) $ (148,722) |
Reconciliation of Unrecognized Tax Benefit | A reconciliation of unrecognized tax benefit balances is as follows (in thousands): December 31, 2021 2020 2019 Balance at beginning of year $ 33,219 $ 40,878 $ 41,110 Additions based on tax positions related to the current year 6,881 4,398 7,708 Additions for tax positions of prior years 2,339 — 1,200 Reductions for tax positions of prior years — (2,410) — Reductions for audit settlements — (930) (3,205) Reductions resulting from a lapse of the applicable statute (4,702) (8,717) (5,935) Balance at end of year $ 37,737 $ 33,219 $ 40,878 |
Balances of Unrecognized Tax Benefits | The balances of unrecognized tax benefits, the amount of related interest and penalties and what Quanta believes to be the range of reasonably possible changes in the next 12 months are as follows (in thousands): December 31, 2021 2020 2019 Unrecognized tax benefits $ 37,737 $ 33,219 $ 40,878 Portion that, if recognized, would reduce tax expense and 34,967 30,868 40,695 Accrued interest on unrecognized tax benefits 4,369 5,204 6,240 Accrued penalties on unrecognized tax benefits 1,587 14 14 Reasonably possible reduction to the balance of unrecognized $0 to $8,098 $0 to $11,859 $0 to $6,268 Portion that, if recognized, would reduce tax expense and $0 to $7,277 $0 to $10,217 $0 to $5,693 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Treasury Stock | Quanta repurchased the following shares of common stock in the open market under the stock repurchase programs based on the trade date (in thousands): Year ended: Shares Amount December 31, 2021 721 $ 63,988 December 31, 2020 6,680 $ 249,949 December 31, 2019 376 $ 11,954 |
Dividends | Quanta declared and paid the following cash dividends and cash dividend equivalents during 2021, 2020 and 2019 (in thousands, except per share amounts): Declaration Record Payment Dividend Dividends Date Date Date Per Share Declared December 1, 2021 January 4, 2022 January 14, 2022 $ 0.07 $ 10,363 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 December 11, 2019 January 2, 2020 January 16, 2020 $ 0.05 $ 7,371 August 28, 2019 October 1, 2019 October 15, 2019 $ 0.04 $ 5,564 May 24, 2019 July 1, 2019 July 15, 2019 $ 0.04 $ 6,233 March 21, 2019 April 5, 2019 April 19, 2019 $ 0.04 $ 5,896 December 6, 2018 January 2, 2019 January 16, 2019 $ 0.04 $ 5,838 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary 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 years ended December 31, 2021, 2020 and 2019 is as follows (shares in thousands): 2021 2020 2019 Shares Weighted Average Shares Weighted Average Shares Weighted Average Unvested at January 1 3,869 $37.57 3,265 $35.34 2,634 $33.50 Granted 1,642 $94.83 2,029 $39.91 2,142 $35.62 Vested (1,476) $37.03 (1,269) $35.69 (1,349) $32.22 Forfeited (155) $48.52 (156) $36.67 (162) $35.20 Unvested at December 31 3,880 $61.64 3,869 $37.57 3,265 $35.34 A summary of the activity for PSUs to be settled in common stock for the years ended December 31, 2021, 2020 and 2019 is as follows (shares in thousands): 2021 2020 2019 Shares Weighted Average Shares Weighted Average Grant Date Fair Value (Per share) (1) Shares Weighted Average Unvested at January 1 1,047 $37.65 848 $40.04 775 $34.72 Granted 174 $90.44 437 $34.60 358 $40.15 Vested (268) $38.28 (238) $41.87 (236) $22.73 Forfeited (22) $41.86 — N/A (49) $40.07 Unvested at December 31 931 $47.27 1,047 $37.65 848 $40.04 (1) Certain weighted average grant date fair value per share amounts related to the year ended December 31, 2020 have been recast to conform to the correction of the valuation of PSUs described below. |
Grant Date Fair Value for Awards of Performance Units Inputs | The grant date fair values of the PSUs were 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 2019 Valuation date price based on March 25, 2021, March 26, 2020 and March 8, 2019 closing stock prices of Quanta common stock $83.48 $31.49 $35.19 Expected volatility 36 % 34 % 25 % Risk-free interest rate 0.26 % 0.35 % 2.43 % Term in years 2.77 2.76 2.81 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Summary of Plan Information Relating to Participation in Multiemployer Pension Plans | The following table summarizes plan information relating to Quanta’s participation in multiemployer defined benefit pension plans, including company contributions for the last three years, the status of the plans under the PPA and whether the plans are subject to a funding improvement or rehabilitation plan or contribution surcharges. The most recent PPA zone status available in 2021 and 2020 relates to the plans’ fiscal year-ends in 2020 and 2019. Forms 5500 were not yet available for the plan years ending in 2021. The PPA zone status is based on information that Quanta received from the respective plans, as well as publicly available information on the U.S. Department of Labor website, and is certified by the plan’s actuary. Although multiple factors or tests may result in red zone or yellow zone status, plans in the red zone generally are less than 65 percent funded, plans in the yellow zone generally are less than 80 percent funded, and plans in the green zone generally are at least 80 percent funded. Under the PPA, red zone plans are classified as “critical” status, yellow zone plans are classified as “endangered” status and green zone plans are classified as neither “endangered” nor “critical” status. The “Subject to Financial Improvement/ Rehabilitation Plan” column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented. The last column lists the expiration dates of Quanta’s collective-bargaining agreements to which the plans are subject. Total contributions to these plans correspond to the number of union employees employed at any given time and the plans in which they participate and vary depending upon the location and number of ongoing projects at a given time and the need for union resources in connection with such projects. Information has been presented separately for individually significant plans, based on PPA funding status classification, and in the aggregate for all other plans. Employee Identification Number/ Pension Plan Number PPA Zone Status Subject to Financial Improve- ment/ Reha- bilitation Plan Contributions (in thousands) Sur-charge Imposed Expiration Date of Collective Bargaining Agreement Fund 2021 2020 2021 2020 2019 National Electrical Benefit Fund 53-0181657 Green Green No $ 38,195 $ 40,902 $ 44,414 No Varies through May 2026 Excavators Union Local 731 Pension Fund 13-1809825 Green Green No 16,202 14,310 6,697 No April 2022 Central Pension Fund of the IUOE & Participating Employers 36-6052390 Green Green No 11,237 8,467 11,638 No Varies through May 2024 Pipeline Industry Pension Fund 73-6146433 Green Green No 5,081 3,654 9,376 No Varies through June 2023 Laborers Pension Trust Fund for Northern California 94-6277608 Green Green No 4,479 2,328 2,823 No Varies through May 2024 Operating Engineers’ Local 324 Pension Fund 38-1900637 Red Red Yes 2,789 2,629 4,315 No Varies through June 2023 IBEW Local 1249 Pension Plan 15-6035161 Green Green No 2,667 530 771 No Varies through May 2025 Local 697 IBEW and Electrical Industry Pension Fund 51-6133048 Green Green No 2,229 1,840 3,717 No May 2025 Pension Trust Fund for Operating Engineers 94-6090764 Yellow Yellow Yes 1,755 1,177 956 No June 2023 Eighth District Electrical Pension Fund 84-6100393 Green Green No 1,599 4,272 5,939 No Varies through August 2024 Laborers District Council of W PA Pension Fund 25-6135576 Yellow Yellow Yes 1,375 77 1,194 No Varies through May 2024 Teamsters National Pipe Line Pension Plan 46-1102851 Green Green No 1,276 1,380 3,039 No Varies through June 2023 Operating Engineers Pension Trust 95-6032478 Yellow Yellow Yes 1,143 172 119 No Varies through June 2023 Laborers National Pension Fund 75-1280827 Red Red Yes 1,049 638 1,910 No Varies through May 2024 Plumbers and Pipefitters National Pension Fund 52-6152779 Yellow Yellow Yes 932 1,453 1,162 No Varies through March 2023 Michigan Laborers’ Pension Plan 38-6233976 Yellow Yellow Yes 737 512 1,491 No Varies through May 2024 Employer-Teamsters Local Nos 175 & 505 Pension Trust Fund 55-6021850 Red Red Yes 151 48 530 No June 2023 All other plans - U.S. 37,306 30,829 27,655 All other plans - Canada (1) 2,794 6,760 6,451 Total contributions $ 132,996 $ 121,978 $ 134,197 (1) Multiemployer defined benefit pension plans in Canada are not subject to the reporting requirements under the PPA. Accordingly, certain information was not publicly available. Quanta’s contributions to the following individually significant plans were five percent or more of the total contributions to these plans for the periods indicated based on the Forms 5500 for these plans for the years ended December 31, 2020 and 2019. Forms 5500 were not yet available for these plans for the year ended December 31, 2021. Pension Fund Plan Years in which Quanta Contributions Were Five Percent or More of Total Plan Contributions Excavators Union Local 731 Pension Fund 2020 National Electrical Benefit Fund 2020 and 2019 Pipeline Industry Pension Fund 2020 and 2019 Local 697 IBEW and Electrical Industry Pension Fund 2020 and 2019 Eighth District Electrical Pension Fund 2020 and 2019 Teamsters National Pipe Line Pension Plan 2020 and 2019 IBEW Local 456 Pension Plan (1) 2020 and 2019 Local Union No. 9 IBEW and Outside Contractors Pension Fund (1) 2020 and 2019 West Virginia Laborers Pension Trust Fund (1) 2019 (1) This plan is included in the “All other plans - U.S.” category in the prior table. |
Detail of Certain Accounts (Tab
Detail of Certain Accounts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash and Cash Equivalents | Amounts related to Quanta’s cash and cash equivalents based on geographic location of the bank accounts were as follows (in thousands): December 31, 2021 2020 Cash and cash equivalents held in domestic bank accounts $ 205,781 $ 156,122 Cash and cash equivalents held in foreign bank accounts 23,316 28,498 Total cash and cash equivalents $ 229,097 $ 184,620 December 31, 2021 2020 Cash and cash equivalents held by domestic joint ventures $ 21,828 $ 7,714 Cash and cash equivalents held by foreign joint ventures 3,461 3,973 Total cash and cash equivalents held by joint ventures 25,289 11,687 Cash and cash equivalents held by captive insurance company 133,302 85,014 Cash and cash equivalents not held by joint ventures or captive insurance company 70,506 87,919 Total cash and cash equivalents $ 229,097 $ 184,620 |
Property and Equipment | Property and equipment consisted of the following (in thousands): Estimated Useful December 31, Lives in Years 2021 2020 Land N/A $ 86,013 $ 69,389 Buildings and leasehold improvements 5-30 318,499 249,106 Operating machinery, equipment and vehicles 1-25 2,603,149 2,297,120 Office equipment, furniture and fixtures and information technology systems 3-10 259,776 244,113 Construction work in progress N/A 91,502 20,900 Finance lease assets and rental purchase options (see Note 11) 5-20 64,256 52,160 Property and equipment, gross 3,423,195 2,932,788 Less — Accumulated depreciation and amortization (1,503,498) (1,372,132) Property and equipment, net of accumulated depreciation $ 1,919,697 $ 1,560,656 |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following (in thousands): December 31, 2021 2020 Accounts payable, trade $ 1,251,118 $ 798,023 Accrued compensation and related expenses 547,161 378,002 Other accrued expenses 456,392 333,769 Accounts payable and accrued expenses $ 2,254,671 $ 1,509,794 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2021 2020 2019 Accounts and notes receivable $ (248,452) $ 71,058 $ (214,580) Contract assets (331,946) 153,832 (12,317) Inventories 1,418 9,860 52,168 Prepaid expenses and other current assets (6,503) 83,518 (60,475) Accounts payable and accrued expenses and other non-current liabilities 95,829 115,569 39,419 Contract liabilities 47,163 (84,370) 174,230 Other, net (1) (15,191) (22,098) (135,250) Net change in operating assets and liabilities, net of non-cash transactions $ (457,682) $ 327,369 $ (156,805) (1) The amount for the year ended December 31, 2019 includes the payment of $87 million of on-demand advance payment bonds and $25 million of on-demand performance bonds exercised in connection with the terminated telecommunications project in Peru. See Legal Proceedings — Peru Project Dispute in Note 16 for additional information on this matter. |
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 consolidated balance sheets that sum to the total of such amounts shown in the statements of cash flows are as follows (in thousands): December 31, 2021 2020 2019 2018 Cash and cash equivalents $ 229,097 $ 184,620 $ 164,798 $ 78,687 Restricted cash included in “Prepaid expenses and other current assets” 1,836 1,275 4,026 3,286 Restricted cash included in “Other assets, net” 954 913 921 1,283 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 231,887 $ 186,808 $ 169,745 $ 83,256 Additional supplemental cash flow information is as follows (in thousands): Year Ended December 31, 2021 2020 2019 Cash (paid) received during the period for - Interest paid $ (52,737) $ (32,142) $ (64,805) Income taxes paid $ (125,328) $ (231,186) $ (116,467) Income tax refunds $ 13,257 $ 18,119 $ 7,474 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases and rental purchase options is as follows (in thousands): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (104,434) $ (115,597) $ (119,357) Operating cash flows from finance leases $ (90) $ (108) $ (64) Financing cash flows from finance leases $ (1,001) $ (1,198) $ (1,835) Lease assets obtained in exchange for lease liabilities: Operating leases $ 73,713 $ 69,721 $ 96,550 Finance leases $ 1,044 $ 1,384 $ 691 Rental purchase option assets obtained in exchange for rental purchase option liabilities $ 11,713 $ 35,734 $ 12,229 |
Business and Organization (Deta
Business and Organization (Details) | 3 Months Ended |
Dec. 31, 2021Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Basis of Presentation and Cer_3
Basis of Presentation and Certain Accounting Policies - Insurance (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Accounting Policies [Abstract] | |
Employer's liability claims subject to deductible per occurrence | $ 5 |
Worker's compensation claims per occurrence | 5 |
Auto liability insurance claims deductible | 15 |
General liability insurance claims deductible | 15 |
Employee health care benefit plans subject to deductible per claimant | $ 0.8 |
Basis of Presentation and Cer_4
Basis of Presentation and Certain Accounting Policies - Stock-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2021shares | |
Restricted Stock Units to be Settled in Cash | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amount in cash received for each RSU is equal to the fair value of this number of Quanta common stock shares (in shares) | 1 |
Revenue Recognition and Relat_3
Revenue Recognition and Related Balance Sheet Accounts - Performance Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligation | $ 5,900 | $ 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]: 2022-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percent of remaining performance obligation expected to be recognized | 81.80% | |
Recognition period for remaining performance obligation | 12 months |
Revenue Recognition and Relat_4
Revenue Recognition and Related Balance Sheet Accounts - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2021USD ($)unitnumberOfProjects | Jun. 30, 2021USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2021USD ($)unitnumberOfProjects | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Revenue Recognition [Line Items] | |||||||
Revenues recognized related to change orders and claims | $ 367,800 | $ 367,800 | $ 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 | |||||
Change in contract estimates, (favorable) unfavorable impact on operating results, percent | 5.00% | 5.00% | |||||
Percent of total revenues recognized associated with revenue recognition method | 45.90% | 47.90% | 50.00% | ||||
Change in contract estimates, favorable (unfavorable) impact on revenues | $ 130,200 | $ 27,000 | $ 60,200 | ||||
Revenue recognized related to amounts in contract liabilities outstanding at the beginning of period | 433,300 | 491,500 | 370,000 | ||||
Stockholders' equity | $ 5,116,921 | 5,116,921 | 4,348,972 | 4,053,831 | $ 3,605,453 | ||
Allowances for doubtful accounts on current receivables | 49,749 | 49,749 | 16,546 | ||||
Deferred income taxes | (191,098) | (191,098) | (166,407) | ||||
Provision for credit losses | 34,890 | 3,656 | 11,249 | ||||
Current retainage balances | 406,700 | 406,700 | 306,300 | ||||
Non-current retainage balances | 93,900 | 93,900 | 88,200 | ||||
Unbilled receivables | 679,000 | 679,000 | 472,300 | 524,300 | |||
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 | 400 | 400 | |||||
Limetree Bay Refining, LLC And Limetree Bay Terminals, LLC | |||||||
Revenue Recognition [Line Items] | |||||||
Provision for credit losses | 8,100 | $ 23,600 | |||||
Retained Earnings | |||||||
Revenue Recognition [Line Items] | |||||||
Stockholders' equity | 3,714,843 | 3,714,843 | 3,264,967 | 2,854,271 | $ 2,477,291 | ||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Revenue Recognition [Line Items] | |||||||
Stockholders' equity | (3,841) | ||||||
Allowances for doubtful accounts on current receivables | 5,100 | ||||||
Deferred income taxes | 1,300 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||
Revenue Recognition [Line Items] | |||||||
Stockholders' equity | (3,841) | ||||||
Accounts payable and accrued expenses | |||||||
Revenue Recognition [Line Items] | |||||||
Unearned revenues | $ 51,800 | $ 51,800 | 53,600 | 33,200 | |||
Two Larger Pipleline Projects - Canada | |||||||
Revenue Recognition [Line Items] | |||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | 10,000 | ||||||
Larger Electric Transmission Project | |||||||
Revenue Recognition [Line Items] | |||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | (20,800) | ||||||
Several Projects | |||||||
Revenue Recognition [Line Items] | |||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | $ 35,500 | ||||||
EPC Electric Transmission Project | |||||||
Revenue Recognition [Line Items] | |||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | $ (30,100) | ||||||
Larger Pipeline Transmission Project | |||||||
Revenue Recognition [Line Items] | |||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | (22,900) | ||||||
Larger Natural Gas Transmission Project | |||||||
Revenue Recognition [Line Items] | |||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | (16,200) | ||||||
Electric Transmission Project - Southern California | |||||||
Revenue Recognition [Line Items] | |||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | 21,100 | ||||||
Percentage of project completion | 99.00% | 99.00% | |||||
Peru Telecommunications Project | Correction of Total Estimated Project Costs | Restatement Adjustment | |||||||
Revenue Recognition [Line Items] | |||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | 9,600 | ||||||
Processing Facility Project | |||||||
Revenue Recognition [Line Items] | |||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | $ 29,400 | ||||||
Projects In Progress | |||||||
Revenue Recognition [Line Items] | |||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | $ (111,500) | ||||||
Change in contract estimates, (favorable) unfavorable impact on operating results, percent | (5.70%) |
Revenue Recognition and Relat_5
Revenue Recognition and Related Balance Sheet Accounts - Revenue Disaggregated by Geographic Location and Contract Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 12,980,213 | $ 11,202,672 | $ 12,112,153 |
Percentage of total revenues | 100.00% | 100.00% | 100.00% |
Unit-price contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 5,029,100 | $ 4,172,363 | $ 4,193,295 |
Percentage of total revenues | 38.70% | 37.20% | 34.60% |
Cost-plus contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 3,102,075 | $ 2,649,770 | $ 3,304,161 |
Percentage of total revenues | 23.90% | 23.70% | 27.30% |
Fixed price contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 4,849,038 | $ 4,380,539 | $ 4,614,697 |
Percentage of total revenues | 37.40% | 39.10% | 38.10% |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 11,068,493 | $ 9,618,951 | $ 10,190,684 |
Percentage of total revenues | 85.30% | 85.80% | 84.00% |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,557,117 | $ 1,252,365 | $ 1,436,720 |
Percentage of total revenues | 12.00% | 11.20% | 11.90% |
Australia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 221,038 | $ 200,664 | $ 187,915 |
Percentage of total revenues | 1.70% | 1.80% | 1.60% |
Others | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 133,565 | $ 130,692 | $ 296,834 |
Percentage of total revenues | 1.00% | 1.20% | 2.50% |
Revenue Recognition and Relat_6
Revenue Recognition and Related Balance Sheet Accounts - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 803,453 | $ 453,832 | $ 601,268 |
Contract liabilities | $ 802,872 | $ 528,864 | $ 606,146 |
Revenue Recognition and Relat_7
Revenue Recognition and Related Balance Sheet Accounts - Composition of the Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 16,546 | $ 9,398 | $ 5,839 |
Provision for credit losses | 34,890 | 3,656 | 11,249 |
Direct write-offs charged against the allowance | (1,687) | (1,575) | (7,690) |
Balance at end of year | 49,749 | 16,546 | $ 9,398 |
Cumulative Effect, Period of Adoption, Adjustment | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 5,067 | ||
Balance at end of year | $ 5,067 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021USD ($)Segment | Jun. 30, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Segment | 3 | ||||
Revenues | $ 12,980,213 | $ 11,202,672 | $ 12,112,153 | ||
Operating income (loss) | 663,521 | 611,371 | 554,874 | ||
Non-US | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,910,000 | 1,580,000 | 1,920,000 | ||
Property and equipment | $ 338,100 | 338,100 | 336,400 | ||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 1,557,117 | $ 1,252,365 | $ 1,436,720 | ||
Percentage of foreign revenues | 81.00% | 79.00% | 75.00% | ||
Termination of the Peru Telecommunications Project | |||||
Segment Reporting Information [Line Items] | |||||
Related charge | $ 79,200 | $ 79,200 | |||
Termination of the Peru Telecommunications Project | Revenues | |||||
Segment Reporting Information [Line Items] | |||||
Related charge | 48,800 | ||||
Termination of the Peru Telecommunications Project | Cost of Services | |||||
Segment Reporting Information [Line Items] | |||||
Related charge | 30,400 | ||||
Electric Power Infrastructure Solutions (1) | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 7,624,240 | $ 6,468,192 | 6,346,837 | ||
Operating income (loss) | $ 865,409 | 648,405 | 554,824 | ||
Electric Power Infrastructure Solutions (1) | Operating Segments | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 63,200 | ||||
Operating income (loss) | $ (74,000) | $ (85,700) |
Segment Information - Summarize
Segment Information - Summarized Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 12,980,213 | $ 11,202,672 | $ 12,112,153 |
Operating income (loss) | 663,521 | 611,371 | 554,874 |
Depreciation | 255,529 | 225,256 | 218,107 |
Equity in earnings of integral unconsolidated affiliates | 44,061 | 11,303 | 0 |
Operating Segments | Electric Power Infrastructure Solutions (1) | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,624,240 | 6,468,192 | 6,346,837 |
Operating income (loss) | 865,409 | 648,405 | 554,824 |
Depreciation | 141,093 | 112,663 | 101,299 |
Operating Segments | Renewable Energy Infrastructure Solutions | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,825,259 | 1,305,151 | 775,000 |
Operating income (loss) | 181,908 | 177,920 | 36,353 |
Depreciation | 14,020 | 9,185 | 6,996 |
Operating Segments | Underground Utility and Infrastructure Solutions | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,530,714 | 3,429,329 | 4,990,316 |
Operating income (loss) | 150,147 | 170,074 | 332,011 |
Depreciation | 83,720 | 85,981 | 90,953 |
Corporate and Non-Allocated | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (533,943) | (385,028) | (368,314) |
Depreciation | $ 16,696 | $ 17,427 | $ 18,859 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | Oct. 13, 2021USD ($)shares | Dec. 31, 2021USD ($)Businessesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)divisionshares |
Business Acquisition [Line Items] | ||||
Number of specialty utility foundation and pole-setting contractors | division | 2 | |||
Goodwill expected to be deductible for income tax purposes | $ 1,400,000 | $ 72,600 | $ 82,100 | |
Cash payment for contingent consideration liabilities | $ 76,000 | |||
Shares transferred in settlement of contingent consideration liabilities (in shares) | shares | 4,277 | |||
Blattner | ||||
Business Acquisition [Line Items] | ||||
Aggregate cash consideration paid | $ 2,370,000 | |||
Number of shares granted for acquired companies (in shares) | shares | 3,326,955 | |||
Value of Quanta common stock issued | $ 345,422 | |||
Contingent consideration payments (up to) | $ 300,000 | |||
Post-acquisition period, financial performance objectives | 3 years | |||
Post-acquisition period, deferred earnings, accrued interest | 5.00% | |||
Fair value of contingent consideration liability | $ 125,632 | |||
Cash consideration | $ 2,372,528 | |||
All Other | ||||
Business Acquisition [Line Items] | ||||
Number of shares granted for acquired companies (in shares) | shares | 187,093 | |||
Value of Quanta common stock issued | $ 16,922 | |||
Fair value of contingent consideration liability | 0 | |||
Cash consideration | 328,846 | |||
2021 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Revenues included in consolidated results of operations | 499,600 | |||
Income from continuing operations before income taxes included in consolidated results of operations | (71,600) | |||
Amortization expense | 80,300 | |||
Acquisition-related costs | $ 41,500 | |||
2020 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Number of shares granted for acquired companies (in shares) | shares | 1,334,469 | |||
Value of Quanta common stock issued | $ 57,119 | |||
Contingent consideration payments (up to) | 6,900 | |||
Fair value of contingent consideration liability | 2,250 | |||
Cash consideration | $ 359,624 | |||
Contingent consideration financial target term | 5 years | |||
Revenues included in consolidated results of operations | $ 133,500 | |||
Income from continuing operations before income taxes included in consolidated results of operations | (1,300) | |||
Amortization expense | 6,400 | |||
Acquisition-related costs | $ 17,500 | |||
2019 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Number of shares granted for acquired companies (in shares) | shares | 60,860 | |||
Value of Quanta common stock issued | $ 1,800 | |||
Cash consideration | 395,300 | |||
Revenues included in consolidated results of operations | 223,300 | |||
Income from continuing operations before income taxes included in consolidated results of operations | 7,500 | |||
Amortization expense | 14,600 | |||
Acquisition-related costs | $ 22,100 | |||
Businesses That Provide Electric Power Construction Services In The United States | ||||
Business Acquisition [Line Items] | ||||
Number of businesses acquired | Businesses | 3 | |||
All Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration payments (up to) | $ 313,700 |
Acquisitions - Aggregate Consid
Acquisitions - Aggregate Consideration Paid or Payable and Allocation of Net Assets (Details) - USD ($) $ in Thousands | Oct. 13, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,411,467 | $ 86,197 | |
Blattner | |||
Business Acquisition [Line Items] | |||
Cash paid or payable | $ 2,372,528 | ||
Value of Quanta common stock issued | 345,422 | ||
Contingent consideration | $ 125,632 | ||
Fair value of total consideration transferred or estimated to be transferred | 2,843,582 | ||
Cash and cash equivalents | 171,950 | ||
Accounts receivable | 411,835 | ||
Contract assets | 13,622 | ||
Other current assets | 57,803 | ||
Property and equipment | 179,530 | ||
Other assets | 191 | ||
Identifiable intangible assets | 1,425,000 | ||
Current maturities of long-term debt and short-term debt | 2,304 | ||
Accounts payable and accrued liabilities | (478,521) | ||
Contract liabilities | (227,040) | ||
Deferred tax liabilities, net | 0 | ||
Other long-term liabilities | (7,764) | ||
Total identifiable net assets | 1,544,302 | ||
Goodwill | 1,299,280 | ||
Fair value of net assets acquired | 2,843,582 | ||
All Other | |||
Business Acquisition [Line Items] | |||
Cash paid or payable | 328,846 | ||
Value of Quanta common stock issued | 16,922 | ||
Contingent consideration | 0 | ||
Fair value of total consideration transferred or estimated to be transferred | 345,768 | ||
Cash and cash equivalents | 9,910 | ||
Accounts receivable | 63,032 | ||
Contract assets | 8,322 | ||
Other current assets | 6,334 | ||
Property and equipment | 71,735 | ||
Other assets | 229 | ||
Identifiable intangible assets | 105,128 | ||
Current maturities of long-term debt and short-term debt | 0 | ||
Accounts payable and accrued liabilities | (28,662) | ||
Contract liabilities | (384) | ||
Deferred tax liabilities, net | (2,063) | ||
Other long-term liabilities | 0 | ||
Total identifiable net assets | 233,581 | ||
Goodwill | 112,187 | ||
Fair value of net assets acquired | $ 345,768 | ||
2020 Acquisitions | |||
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 | ||
Cash and cash equivalents | 29,221 | ||
Accounts receivable | 74,492 | ||
Contract assets | 8,919 | ||
Other current assets | 23,877 | ||
Property and equipment | 143,277 | ||
Other assets | 14 | ||
Identifiable intangible assets | 96,826 | ||
Current maturities of long-term debt and short-term debt | 3,307 | ||
Accounts payable and accrued liabilities | (31,804) | ||
Contract liabilities | (3,750) | ||
Deferred tax liabilities, net | (3,178) | ||
Other long-term liabilities | 0 | ||
Total identifiable net assets | 334,587 | ||
Goodwill | 84,406 | ||
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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Blattner | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 1,425,000 | |
Weighted average amortization period at acquisition date | 7 years 9 months 18 days | |
Blattner | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 1,045,000 | |
Weighted average amortization period at acquisition date | 7 years | |
Blattner | Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 130,000 | |
Weighted average amortization period at acquisition date | 8 months 12 days | |
Blattner | Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 250,000 | |
Weighted average amortization period at acquisition date | 15 years | |
Blattner | Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 0 | |
Blattner | Patented rights, developed technology, and process certifications | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | 0 | |
All Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 105,128 | |
Weighted average amortization period at acquisition date | 6 years 6 months | |
All Other | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 77,293 | |
Weighted average amortization period at acquisition date | 6 years 8 months 12 days | |
All Other | Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 6,436 | |
Weighted average amortization period at acquisition date | 1 year 2 months 12 days | |
All Other | Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 5,698 | |
Weighted average amortization period at acquisition date | 14 years 10 months 24 days | |
All Other | Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 6,673 | |
Weighted average amortization period at acquisition date | 5 years | |
All Other | Patented rights, developed technology, and process certifications | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 9,028 | |
Weighted average amortization period at acquisition date | 3 years 6 months | |
2020 Acquisitions | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 96,826 | |
Weighted average amortization period at acquisition date | 6 years 6 months | |
2020 Acquisitions | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 81,154 | |
Weighted average amortization period at acquisition date | 6 years 1 month 6 days | |
2020 Acquisitions | Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 4,022 | |
Weighted average amortization period at acquisition date | 1 year 4 months 24 days | |
2020 Acquisitions | Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 7,654 | |
Weighted average amortization period at acquisition date | 14 years 4 months 24 days | |
2020 Acquisitions | Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 3,996 | |
Weighted average amortization period at acquisition date | 5 years | |
2020 Acquisitions | Patented rights, developed technology, and process certifications | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value at acquisition date | $ 0 |
Acquisitions - Significant Esti
Acquisitions - Significant Estimates Used by Management in Determining Fair Values of Customer Relationships Acquired (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Minimum | ||
Goodwill And Intangible Assets [Line Items] | ||
Discount rates | 18.00% | 19.00% |
Customer attrition rates | 8.00% | 10.00% |
Maximum | ||
Goodwill And Intangible Assets [Line Items] | ||
Discount rates | 26.00% | 25.00% |
Customer attrition rates | 30.00% | 43.00% |
Weighted Average | ||
Goodwill And Intangible Assets [Line Items] | ||
Discount rates | 18.00% | 20.00% |
Customer attrition rates | 10.00% | 13.00% |
Acquisitions - Aggregate Fair V
Acquisitions - Aggregate Fair Values of Outstanding Contingent Consideration Liabilities (Details) - Level 3 - Recurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Total contingent consideration liabilities | $ 143,073 | $ 10,969 |
Accounts payable and accrued expenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accounts payable and accrued expenses | 2,591 | 3,466 |
Insurance and other non-current liabilities | ||
Finite-Lived Intangible Assets [Line Items] | ||
Contingent consideration liabilities, noncurrent | $ 140,482 | $ 7,503 |
Acquisitions - Unaudited Supple
Acquisitions - Unaudited Supplemental Pro Forma Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combination and Asset Acquisition [Abstract] | |||
Revenues | $ 15,503,994 | $ 14,082,275 | $ 12,844,508 |
Gross profit | 2,511,503 | 2,226,703 | 1,761,317 |
Selling, general and administrative expenses | (1,353,780) | (1,208,909) | (1,027,254) |
Amortization of intangible assets | (311,208) | (404,014) | (95,185) |
Net income | 624,506 | 421,105 | 434,593 |
Net income attributable to common stock | $ 618,479 | $ 414,742 | $ 429,822 |
Earnings per share attributable to common stock: | |||
Basic (in dollars per share) | $ 4.31 | $ 2.85 | $ 2.92 |
Diluted (in dollars per share) | $ 4.18 | $ 2.77 | $ 2.89 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Significant Estimates Used by Management in Determining Fair Values of Company's Reporting Units (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Years of cash flows before terminal value | 5 years | 5 years | 5 years |
Discounted cash flows | 100.00% | 100.00% | 70.00% |
Market multiple | 0.00% | 0.00% | 15.00% |
Market capitalization | 0.00% | 0.00% | 15.00% |
Weighted Average Cost of Capital | |||
Goodwill [Line Items] | |||
Measurement input | 0.120 | 0.125 | |
Weighted Average Cost of Capital | Minimum | |||
Goodwill [Line Items] | |||
Measurement input | 0.125 | ||
Weighted Average Cost of Capital | Maximum | |||
Goodwill [Line Items] | |||
Measurement input | 0.135 | ||
Transaction Multiples Applied to EBITDA | |||
Goodwill [Line Items] | |||
Measurement input | 7 | 6 | |
Transaction Multiples Applied to EBITDA | Minimum | |||
Goodwill [Line Items] | |||
Measurement input | 6 | ||
Transaction Multiples Applied to EBITDA | Maximum | |||
Goodwill [Line Items] | |||
Measurement input | 9 | ||
Guideline Public Company Multiples Applied to EBITDA | |||
Goodwill [Line Items] | |||
Measurement input | 6.5 | ||
Compounded Revenue Growth Rates | |||
Goodwill [Line Items] | |||
Measurement input | (0.09) | ||
Compounded Revenue Growth Rates | Minimum | |||
Goodwill [Line Items] | |||
Measurement input | 0.09 | (0.08) | |
Compounded Revenue Growth Rates | Maximum | |||
Goodwill [Line Items] | |||
Measurement input | 0.26 | 0.26 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($)unit | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Goodwill [Line Items] | ||||||
Number of reportable segments | Segment | 3 | |||||
Non-cash charge for impairment of goodwill | $ 0 | $ 0 | $ 0 | $ 0 | ||
Goodwill sensitivity analysis | 10.00% | |||||
Goodwill | 3,528,886 | 2,121,014 | 2,022,675 | $ 3,528,886 | $ 2,121,014 | $ 2,022,675 |
Intangible assets | 1,801,180 | 435,655 | 1,801,180 | 435,655 | ||
Amortization of intangible assets | 165,366 | 76,704 | 62,091 | |||
Underground Utility and Infrastructure Solutions | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 680,276 | $ 671,240 | $ 657,512 | $ 680,276 | $ 671,240 | $ 657,512 |
Underground Utility and Infrastructure Solutions | Two Canadian Pipeline Operating Businesses | ||||||
Goodwill [Line Items] | ||||||
Number of reporting units at risk after cushion test | unit | 2 | |||||
Goodwill | 76,700 | $ 76,700 | ||||
Intangible assets | $ 12,800 | $ 12,800 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill gross, beginning balance | $ 2,218,642 | $ 2,119,101 |
Accumulated impairment, beginning balance | (97,628) | (96,426) |
Goodwill net, beginning balance | 2,121,014 | 2,022,675 |
Goodwill acquired | 1,411,467 | 86,197 |
Purchase price allocation adjustments | (1,791) | 1,749 |
Foreign currency translation adjustments | (1,804) | 10,393 |
Operating company reorganizations | 0 | |
Goodwill gross, ending balance | 3,625,746 | 2,218,642 |
Accumulated impairment, ending balance | (96,860) | (97,628) |
Goodwill net, ending balance | 3,528,886 | 2,121,014 |
Electric Power Infrastructure Solutions Segment | ||
Goodwill [Roll Forward] | ||
Goodwill gross, beginning balance | 1,449,774 | 1,365,163 |
Accumulated impairment, beginning balance | 0 | 0 |
Goodwill net, beginning balance | 1,449,774 | 1,365,163 |
Goodwill acquired | 100,121 | 79,889 |
Purchase price allocation adjustments | (1,791) | 1,730 |
Foreign currency translation adjustments | 1,226 | 2,992 |
Operating company reorganizations | (161,912) | |
Goodwill gross, ending balance | 1,387,418 | 1,449,774 |
Accumulated impairment, ending balance | 0 | 0 |
Goodwill net, ending balance | 1,387,418 | 1,449,774 |
Renewable Energy Infrastructure Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill gross, beginning balance | 0 | 0 |
Accumulated impairment, beginning balance | 0 | 0 |
Goodwill net, beginning balance | 0 | 0 |
Goodwill acquired | 1,299,280 | 0 |
Purchase price allocation adjustments | 0 | 0 |
Foreign currency translation adjustments | 0 | 0 |
Operating company reorganizations | 161,912 | |
Goodwill gross, ending balance | 1,461,192 | 0 |
Accumulated impairment, ending balance | 0 | 0 |
Goodwill net, ending balance | 1,461,192 | 0 |
Underground Utility and Infrastructure Solutions Segment | ||
Goodwill [Roll Forward] | ||
Goodwill gross, beginning balance | 768,868 | 753,938 |
Accumulated impairment, beginning balance | (97,628) | (96,426) |
Goodwill net, beginning balance | 671,240 | 657,512 |
Goodwill acquired | 12,066 | 6,308 |
Purchase price allocation adjustments | 0 | 19 |
Foreign currency translation adjustments | (3,030) | 7,401 |
Operating company reorganizations | 0 | |
Goodwill gross, ending balance | 777,136 | 768,868 |
Accumulated impairment, ending balance | (96,860) | (97,628) |
Goodwill net, ending balance | $ 680,276 | $ 671,240 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 2,480,678 | $ 950,229 |
Accumulated Amortization | (682,498) | (517,574) |
Total | $ 1,798,180 | 432,655 |
Remaining Weighted Average Amortization Period | 7 years 4 months 24 days | |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 2,483,678 | 953,229 |
Intangible Assets, Net | 1,801,180 | 435,655 |
Engineering license | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible Assets | 3,000 | 3,000 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | 1,738,813 | 616,875 |
Accumulated Amortization | (379,417) | (277,647) |
Total | $ 1,359,396 | 339,228 |
Remaining Weighted Average Amortization Period | 6 years 4 months 24 days | |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 286,120 | 149,769 |
Accumulated Amortization | (192,140) | (145,476) |
Total | $ 93,980 | 4,293 |
Remaining Weighted Average Amortization Period | 4 months 24 days | |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 357,103 | 101,533 |
Accumulated Amortization | (41,642) | (32,471) |
Total | $ 315,461 | 69,062 |
Remaining Weighted Average Amortization Period | 14 years 6 months | |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 54,022 | 47,333 |
Accumulated Amortization | (41,409) | (36,973) |
Total | $ 12,613 | 10,360 |
Remaining Weighted Average Amortization Period | 3 years 8 months 12 days | |
Patented rights, developed technology, and process certifications | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 31,520 | 22,486 |
Accumulated Amortization | (23,458) | (21,894) |
Total | $ 8,062 | 592 |
Remaining Weighted Average Amortization Period | 3 years | |
Curriculum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 13,100 | 12,233 |
Accumulated Amortization | (4,432) | (3,113) |
Total | $ 8,668 | $ 9,120 |
Remaining Weighted Average Amortization Period | 6 years 4 months 24 days |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Estimated Future Aggregate Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 347,276 | |
2023 | 246,919 | |
2024 | 233,073 | |
2025 | 218,532 | |
2026 | 211,648 | |
Thereafter | 540,732 | |
Total | $ 1,798,180 | $ 432,655 |
Investments in Affiliates and_2
Investments in Affiliates and Other Entities (Details) mile in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2021USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020USD ($)mile | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)Investment | Dec. 31, 2019USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2014kVdivisionkm | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Investment balance | $ 101,200 | $ 44,900 | |||||||||
Length of electric transmission and distribution system | mile | 18 | ||||||||||
Impairment of cost method investment | 0 | $ 9,311 | $ 0 | ||||||||
Number of non-integral equity method investments | Investment | 2 | ||||||||||
Carrying values for investments accounted for using the cost method | 130,200 | $ 39,500 | |||||||||
Investment in real estate recognized at cost | 23,300 | $ 23,500 | |||||||||
EPC Electric Transmission Project | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Length of electrical transmission line to be constructed under contract | km | 500 | ||||||||||
Number of substations | division | 2 | ||||||||||
Voltage of substations | kV | 500 | ||||||||||
Deferred earnings recognized | $ 60,300 | ||||||||||
Gain related to the sale of interest in limited partnership | $ 13,000 | ||||||||||
LUMA Energy LLC | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Operation and maintenance period | 15 years | ||||||||||
Integral Affiliates | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Related party receivables | 49,000 | ||||||||||
Related party payables | 56,300 | ||||||||||
Integral Affiliate Offering Right-of-way Solutions | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Equity interest | 44.00% | ||||||||||
Payments to interest in entity | $ 22,000 | ||||||||||
LUMA Energy LLC | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Investment balance | 30,600 | 10,900 | |||||||||
Equity interest | 50.00% | ||||||||||
Return on investment | $ 17,500 | ||||||||||
Certain Non-Integral Equity Investments | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Impairment of cost method investment | $ 8,700 | ||||||||||
Broadband Technology Provider | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Carrying values for investments accounted for using the cost method | $ 90,000 | ||||||||||
Broadband Technology Provider | Forecast | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Common equity interest | 5.00% | ||||||||||
Cost Method Investment | Quanta Services, Inc. | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Impairment of cost method investment | $ 9,300 |
Per Share Information - Basic a
Per Share Information - Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amounts attributable to common stock: | |||
Net income attributable to common stock | $ 485,956 | $ 445,596 | $ 402,044 |
Net income attributable to common stock | $ 485,956 | $ 445,596 | $ 402,044 |
Weighted average shares: | |||
Weighted average shares outstanding for basic earnings per share attributable to common stock (in shares) | 140,824 | 141,380 | 145,710 |
Effect of dilutive unvested non-participating stock-based awards (in shares) | 4,549 | 3,867 | 1,824 |
Weighted average shares outstanding for diluted earnings per share attributable to common stock (in shares) | 145,373 | 145,247 | 147,534 |
Per Share Information - Narrati
Per Share Information - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Weighted average shares outstanding attributable to participating securities (in shares) | 0.6 | 1.6 | 2.8 |
Debt Obligations - Long-term De
Debt Obligations - Long-term Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Borrowings under senior credit facility | $ 1,199,841 | $ 148,508 |
Other long-term debt | 64,800 | 46,981 |
Finance leases | 2,546 | 2,228 |
Total long-term debt obligations | 3,737,892 | 1,184,825 |
Less — Current maturities of long-term debt | 13,418 | 10,531 |
Long-term debt, net of current maturities | 3,724,474 | 1,174,294 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,470,000 | |
Unamortized discount and debt issuance costs related to senior notes and term loan | (27,000) | |
0.950% Senior Notes due October 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500,000 | 0 |
2.900% Senior Notes due October 2030 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,000,000 | 1,000,000 |
2.350% Senior Notes due January 2032 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500,000 | 0 |
3.050% Senior Notes due October 2041 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500,000 | 0 |
Senior Notes And Term Loan | Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs related to senior notes and term loan | $ (29,295) | $ (12,892) |
Debt Obligations - Current Matu
Debt Obligations - Current Maturities of Long-Term Debt and Short-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Short-term debt | $ 15,748 | $ 4,233 |
Current maturities of long-term debt | 13,418 | 10,531 |
Current maturities of long-term debt and short-term debt | $ 29,166 | $ 14,764 |
Debt Obligations - Principal Pa
Debt Obligations - Principal Payments Required to be Made (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 12,267 |
2023 | 30,489 |
2024 | 528,235 |
2025 | 45,178 |
2026 | $ 1,130,559 |
Debt Obligations - Senior Notes
Debt Obligations - Senior Notes (Details) - USD ($) | Sep. 23, 2021 | Sep. 22, 2020 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||||
Proceeds from notes offerings | $ 1,487,450,000 | $ 990,130,000 | $ 0 | |||
Payments under credit facility | $ 4,265,478,000 | 4,187,645,000 | $ 5,903,069,000 | |||
Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Payments under credit facility | $ 1,210,000,000 | |||||
Senior Notes | All Senior Notes | Debt Instrument, Redemption, Period One | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price | 100.00% | |||||
Senior Notes | All Senior Notes | Debt Instrument, Redemption, Period One | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price | 101.00% | |||||
Senior Notes | All Senior Notes | Debt Instrument, Redemption, Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price | 100.00% | |||||
Senior Notes | Senior Notes Due 2024, 2032 And 2041 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument | $ 1,500,000,000 | |||||
Proceeds from notes offerings | 1,480,000,000 | |||||
Senior Notes | 0.950% Senior Notes due October 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument | $ 500,000,000 | |||||
Instrument rate | 0.95% | |||||
Senior Notes | 2.350% Senior Notes due January 2032 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument | $ 500,000,000 | |||||
Instrument rate | 2.35% | |||||
Senior Notes | 3.050% Senior Notes due October 2041 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument | $ 500,000,000 | |||||
Instrument rate | 3.05% | |||||
Senior Notes | 2.900% Senior Notes due October 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument | $ 1,000,000,000 | |||||
Instrument rate | 2.90% | |||||
Proceeds from notes offerings | $ 986,700,000 |
Debt Obligations - Interest on
Debt Obligations - Interest on Senior Notes (Details) - Senior Notes - USD ($) $ in Thousands | Sep. 23, 2021 | Sep. 22, 2020 |
0.950% Senior Notes due October 2024 | ||
Debt Instrument [Line Items] | ||
Instrument rate | 0.95% | |
Semi-annual interest payable | $ 2,375 | |
2.900% Senior Notes due October 2030 | ||
Debt Instrument [Line Items] | ||
Instrument rate | 2.90% | |
Semi-annual interest payable | $ 14,500 | |
2.350% Senior Notes due January 2032 | ||
Debt Instrument [Line Items] | ||
Instrument rate | 2.35% | |
Semi-annual interest payable | $ 5,875 | |
3.050% Senior Notes due October 2041 | ||
Debt Instrument [Line Items] | ||
Instrument rate | 3.05% | |
Semi-annual interest payable | $ 7,625 |
Debt Obligations - Senior Credi
Debt Obligations - Senior Credit Facility (Details) | Oct. 13, 2021USD ($) | Oct. 08, 2021USD ($) | Oct. 07, 2021 | Sep. 30, 2020 | Sep. 21, 2020 | Dec. 31, 2021USD ($)unit | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 22, 2020USD ($) |
Line of Credit Facility [Line Items] | |||||||||
Payments under credit facility | $ 4,265,478,000 | $ 4,187,645,000 | $ 5,903,069,000 | ||||||
Borrowings under senior credit facility | 1,199,841,000 | 148,508,000 | |||||||
Borrowings under credit facility | 5,316,002,000 | 2,983,529,000 | 6,175,558,000 | ||||||
Debt issuance costs related to amendment | 12,568,000 | 11,089,000 | 2,309,000 | ||||||
Amortization expense related to capitalized debt issuance costs | 8,405,000 | 5,126,000 | $ 1,870,000 | ||||||
Term Loan | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Payments under credit facility | 1,210,000,000 | ||||||||
Senior Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Option to increase revolving commitments under the credit agreement | $ 400,000,000 | ||||||||
Credit facility available for revolving loans or issuing new letters of credit | 1,870,000,000 | ||||||||
Reduction in Quanta's funded indebtedness reduced by cash and cash equivalents in excess of this amount | 25,000,000 | ||||||||
Senior Credit Facility | Canadian Dollars | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Borrowings under senior credit facility | 312,600,000 | ||||||||
Senior Credit Facility | U.S. Dollars | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Borrowings under senior credit facility | 102,400,000 | ||||||||
Senior Credit Facility | Australian Dollars | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Borrowings under senior credit facility | 34,800,000 | ||||||||
Senior Credit Facility | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Commitment fee | 0.275% | 0.20% | |||||||
Senior Credit Facility | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Commitment fee | 0.425% | 0.40% | |||||||
Senior Credit Facility | Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 1.125% | ||||||||
Senior Credit Facility | Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 2.00% | ||||||||
Senior Credit Facility | Excess of Base Rate Domestic Borrowings Only | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 0.125% | ||||||||
Senior Credit Facility | Excess of Base Rate Domestic Borrowings Only | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 1.00% | ||||||||
Senior Credit Facility | Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 1.125% | ||||||||
Senior Credit Facility | Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 2.00% | ||||||||
Senior Credit Facility | Excess of Federal Funds Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 0.50% | ||||||||
Senior Credit Facility | Excess of Euro Currency Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 1.00% | ||||||||
Senior Credit Facility | Line of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Cross default provisions with debt instruments exceeding this amount | $ 300,000,000 | ||||||||
Borrowings under senior credit facility | $ 449,800,000 | ||||||||
Maximum consolidated leverage ratio | 3.5 | ||||||||
Acquisition threshold for leverage ratio | $ 200,000,000 | ||||||||
Maximum consolidated leverage ratio permissible under credit agreement | 4 | ||||||||
Minimum consolidated interest coverage ratio | 3 | ||||||||
Amount of availability under the credit agreement and/or cash and cash equivalents on hand that must be present to allow for cash payments of dividends and stock repurchases | $ 100,000,000 | ||||||||
Deferred financing costs | $ 10,100,000 | $ 9,700,000 | |||||||
Debt Instrument, Covenant, Number Of Fiscal Quarters Applicable To Updated Acquisition Ratio | unit | 4 | ||||||||
Senior Credit Facility | Line of Credit | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Commitment fee | 0.10% | ||||||||
Senior Credit Facility | Line of Credit | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Commitment fee | 0.275% | ||||||||
Senior Credit Facility | Revolving Credit Facility | Line of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Senior secured revolving credit facility | $ 2,640,000,000 | ||||||||
Borrowed amount | $ 50,900,000 | ||||||||
Senior Credit Facility | Revolving Credit Facility | 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 | 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 | 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 | 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 | 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 | Line of Credit | Base Rate | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 0.75% | ||||||||
Senior Credit Facility | Standby Letters of Credit | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 1.125% | ||||||||
Senior Credit Facility | Standby Letters of Credit | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 2.00% | ||||||||
Senior Credit Facility | Standby Letters of Credit | Line of Credit | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Letter of credit fee | 1.125% | ||||||||
Senior Credit Facility | Standby Letters of Credit | Line of Credit | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Letter of credit fee | 1.75% | ||||||||
Senior Credit Facility | Performance Letters of Credit | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 0.675% | ||||||||
Senior Credit Facility | Performance Letters of Credit | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 1.15% | ||||||||
Senior Credit Facility | Performance Letters of Credit | Line of Credit | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Letter of credit fee | 0.675% | ||||||||
Senior Credit Facility | Performance Letters of Credit | 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 under the credit facility | $ 318,200,000 | ||||||||
Senior Credit Facility | Letters of Credit and Bank Guarantees | Canadian Dollars | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Letters of credit and bank guarantees under the credit facility | 76,500,000 | ||||||||
Senior Credit Facility | Letters of Credit and Bank Guarantees | U.S. Dollars | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Letters of credit and bank guarantees under the credit facility | $ 241,700,000 | ||||||||
Senior Credit Facility | Term Loan | Payments Due First Business Day Of Quarter In 2023 And 2024 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Quarterly principal payments | $ 4,700,000 | ||||||||
Senior Credit Facility | Term Loan | Payments Due First Business Day Of Quarter In 2025 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Quarterly principal payments | 9,400,000 | ||||||||
Senior Credit Facility | Term Loan | Payments Due First Business Day Of Quarter In 2026 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Quarterly principal payments | 18,800,000 | ||||||||
Senior Credit Facility | Term Loan | Line of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Senior secured revolving credit facility | $ 750,000,000 | ||||||||
Borrowed amount | $ 750,000,000 | ||||||||
Senior Credit Facility | Term Loan | 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 | Term Loan | 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 | Term Loan | 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 | Term Loan | Line of Credit | Base Rate | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 0.00% | ||||||||
Senior Credit Facility | Term Loan | Line of Credit | Base Rate | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument basis spread on variable rate | 0.625% | ||||||||
Senior Credit Facility | Term Loan | 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% |
Debt Obligations - Information
Debt Obligations - Information on Borrowings under Current and Prior Credit Facility and Applicable Interest Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |||
Maximum amount outstanding under the senior credit facility during the period | $ 1,463,667 | $ 2,023,326 | $ 2,051,714 |
Average daily amount outstanding under the senior credit facility | $ 591,114 | $ 1,091,091 | $ 1,553,499 |
Weighted-average interest rate of the senior credit facility | 1.90% | 2.10% | 3.80% |
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 | |||
Senior secured revolving credit facility | $ 2,180,000,000 | |||
Credit facility available for revolving loans or issuing new letters of credit | $ 0 | $ 696,100,000 | ||
Commitment fees | $ 4,400,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease term (up to) | 9 years 6 months | ||
Option to extend the leases (up to) | 5 years | ||
Rental purchase option asset | $ 53.9 | $ 45.7 | |
Future minimum lease payments for short-term leases | 14 | ||
Maximum guaranteed residual value | $ 891.8 | ||
Related Parties | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term (up to) | 10 years | ||
Lease expense | $ 13.9 | $ 14.3 | $ 16.7 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance lease cost: | |||
Amortization of lease assets | $ 1,097 | $ 1,234 | $ 1,393 |
Interest on lease liabilities | 90 | 107 | 64 |
Operating lease cost | 104,668 | 116,672 | 121,767 |
Short-term and variable lease cost | 716,722 | 656,649 | 837,244 |
Total lease cost | $ 822,577 | $ 774,662 | $ 960,468 |
Leases - Components of Leases i
Leases - Components of Leases in the Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Operating lease right-of-use assets | $ 240,605 | $ 256,845 |
Finance lease assets | 2,415 | 2,370 |
Total lease assets | $ 243,020 | $ 259,215 |
Finance Leased Asset, Type [Extensible Enumeration] | Property and equipment, net of accumulated depreciation of $1,503,498 and $1,372,132 | Property and equipment, net of accumulated depreciation of $1,503,498 and $1,372,132 |
Current: | ||
Operating | $ 78,251 | $ 85,134 |
Finance | $ 1,156 | $ 846 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt and short-term debt | Current maturities of long-term debt and short-term debt |
Non-current: | ||
Operating | $ 170,427 | $ 178,822 |
Finance | $ 1,390 | $ 1,382 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt, net of current maturities | Long-term debt, net of current maturities |
Total lease liabilities | $ 251,224 | $ 266,184 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2022 | $ 85,427 | |
2023 | 63,890 | |
2024 | 44,113 | |
2025 | 30,638 | |
2026 | 20,602 | |
Thereafter | 23,866 | |
Total future minimum lease payments | 268,536 | |
Less imputed interest | (19,858) | |
Total lease liabilities | 248,678 | |
Finance Leases | ||
2022 | 1,185 | |
2023 | 907 | |
2024 | 423 | |
2025 | 137 | |
2026 | 0 | |
Thereafter | 0 | |
Total future minimum lease payments | 2,652 | |
Less imputed interest | (106) | |
Total lease liabilities | 2,546 | $ 2,228 |
Total | ||
2022 | 86,612 | |
2023 | 64,797 | |
2024 | 44,536 | |
2025 | 30,775 | |
2026 | 20,602 | |
Thereafter | 23,866 | |
Total future minimum operating and finance lease payments | 271,188 | |
Less imputed interest | (19,964) | |
Total lease liabilities | $ 251,224 | $ 266,184 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted average remaining lease term (in years): | ||
Operating leases | 4 years 3 months | 4 years 3 months 10 days |
Finance leases | 2 years 6 months 25 days | 3 years 21 days |
Weighted average discount rate: | ||
Operating leases | 3.70% | 4.20% |
Finance leases | 3.30% | 4.10% |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income before income taxes: | |||
Domestic | $ 534,302 | $ 632,791 | $ 550,676 |
Foreign | 88,599 | (61,445) | 21,611 |
Income before income taxes | $ 622,901 | $ 571,346 | $ 572,287 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 65,273 | $ 134,538 | $ 121,214 |
State | 32,930 | 45,610 | 35,329 |
Foreign | 6,644 | (745) | 16,848 |
Total current tax provision | 104,847 | 179,403 | 173,391 |
Deferred: | |||
Federal | 27,762 | (46,251) | 7,379 |
State | (2,418) | (3,850) | (1,776) |
Foreign | 727 | (9,915) | (13,522) |
Total deferred tax provision (benefit) | 26,071 | (60,016) | (7,919) |
Total provision for income taxes | $ 130,918 | $ 119,387 | $ 165,472 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Provision at the statutory rate | $ 130,809 | $ 119,983 | $ 120,180 |
Increases (decreases) resulting from — | |||
State taxes | 27,204 | 31,791 | 23,399 |
Valuation allowance on deferred tax assets | 6,107 | (31,138) | 35,761 |
Employee per diems, meals and entertainment | 3,569 | 10,680 | 13,817 |
Contingency reserves, net | 844 | (2,125) | (3,173) |
Company-owned life insurance | (6,969) | 0 | 0 |
Taxes on joint ventures | (8,825) | (3,466) | (930) |
Foreign taxes | (9,359) | (7,268) | (21,565) |
Stock-based compensation | (21,271) | (3,109) | (1,863) |
Other | 8,809 | 4,039 | (154) |
Total provision for income taxes | $ 130,918 | $ 119,387 | $ 165,472 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax liabilities: | |||
Property and equipment | $ (278,303) | $ (236,256) | |
Goodwill | (93,632) | (85,467) | |
Leased assets | (76,728) | (77,344) | |
Customer holdbacks | (32,661) | (30,457) | |
Other intangible assets | 0 | (4,438) | |
Total deferred income tax liabilities | (481,324) | (433,962) | |
Deferred income tax assets: | |||
Net operating loss carryforwards | 78,947 | 82,817 | |
Lease liabilities | 76,608 | 76,826 | |
Accruals and reserves | 65,852 | 70,335 | |
Tax credits | 39,826 | 42,202 | |
Other intangible assets | 19,110 | 0 | |
Stock and incentive compensation | 50,772 | 36,590 | |
Deferred tax benefits on unrecognized tax positions | 10,090 | 10,108 | |
Other | 7,535 | 9,617 | |
Subtotal | 348,740 | 328,495 | |
Valuation allowance | (41,308) | (43,255) | $ (104,200) |
Total deferred income tax assets | 307,432 | 285,240 | |
Total net deferred income tax liabilities | $ (173,892) | $ (148,722) |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred income taxes: | ||
Assets | $ 17,206 | $ 17,685 |
Liabilities | (191,098) | (166,407) |
Total net deferred income tax liabilities | $ (173,892) | $ (148,722) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | ||||
Valuation allowance for deferred income tax assets | $ 41,308 | $ 43,255 | $ 104,200 | |
Change in total valuation allowance | 1,900 | (60,900) | 36,600 | |
Increase in tax expense | 6,100 | (31,100) | ||
Tax effect of state and foreign net operating loss carryforwards | 78,947 | 82,817 | ||
Tax carryforwards expiring in 2022 | 200 | |||
Tax carryforwards expiring in 2023 | 700 | |||
Tax carryforwards expiring in 2024 | 100 | |||
Tax carryforwards expiring in 2025 | 6,200 | |||
Tax carryforwards expiring in 2026 | 400 | |||
Tax carryforwards expiring thereafter | 72,400 | |||
Valuation allowance foreign and state net operating loss carryforwards | 40,000 | |||
Total amount of unrecognized tax benefits relating to uncertain tax positions | 37,737 | 33,219 | 40,878 | $ 41,110 |
Increase (decrease) in the total amount of unrecognized tax benefits relating to uncertain tax positions | 4,500 | (12,100) | (9,100) | |
Additions for tax positions of prior years | 2,339 | 0 | 1,200 | |
Interest and penalties expense (income) in the provision for income taxes | (800) | (700) | 800 | |
Reduction due to expiration of certain federal and state statutes of limitations | 4,702 | 8,717 | $ 5,935 | |
Foreign Operating Loss Carryforwards | ||||
Income Taxes [Line Items] | ||||
Change in total valuation allowance | 8,500 | (29,400) | ||
State And Local Operating Carryforwards | ||||
Income Taxes [Line Items] | ||||
Change in total valuation allowance | (2,400) | |||
Operating Loss Carryforwards, Subject To Expiration | ||||
Income Taxes [Line Items] | ||||
Change in total valuation allowance | (8,000) | |||
Foreign Tax Credits | ||||
Income Taxes [Line Items] | ||||
Change in total valuation allowance | (45,100) | |||
Deferred Tax Assets | ||||
Income Taxes [Line Items] | ||||
Change in total valuation allowance | $ 14,000 | |||
Gross Amount Before Balance Sheet Presentation Netting | ||||
Income Taxes [Line Items] | ||||
Tax effect of state and foreign net operating loss carryforwards | $ 80,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of year | $ 33,219 | $ 40,878 | $ 41,110 |
Additions based on tax positions related to the current year | 6,881 | 4,398 | 7,708 |
Additions for tax positions of prior years | 2,339 | 0 | 1,200 |
Reductions for tax positions of prior years | 0 | (2,410) | 0 |
Reductions for audit settlements | 0 | (930) | (3,205) |
Reductions resulting from a lapse of the applicable statute of limitations periods | (4,702) | (8,717) | (5,935) |
Balance at end of year | $ 37,737 | $ 33,219 | $ 40,878 |
Income Taxes - Balances of Unre
Income Taxes - Balances of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Unrecognized tax benefits | $ 37,737 | $ 33,219 | $ 40,878 | $ 41,110 |
Portion that, if recognized, would reduce tax expense and effective tax rate | 34,967 | 30,868 | 40,695 | |
Accrued interest on unrecognized tax benefits | 4,369 | 5,204 | 6,240 | |
Accrued penalties on unrecognized tax benefits | 1,587 | 14 | 14 | |
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | 0 | 0 | 0 | |
Portion that, if recognized, would reduce tax expense and effective tax rate | 0 | 0 | 0 | |
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | 8,098 | 11,859 | 6,268 | |
Portion that, if recognized, would reduce tax expense and effective tax rate | $ 7,277 | $ 10,217 | $ 5,693 |
Equity - Treasury Stock (Detail
Equity - Treasury Stock (Details) - USD ($) shares in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2020 | Sep. 30, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Value of treasury stock acquired, cost method | $ 63,988,000 | $ 249,949,000 | $ 11,954,000 | ||
Cash payments related to stock repurchases | 66,687,000 | 247,249,000 | 20,092,000 | ||
2018 Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Aggregate authorized amount of common stock to be repurchased | $ 500,000,000 | ||||
2020 Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Aggregate authorized amount of common stock to be repurchased | $ 500,000,000 | ||||
Remaining authorized share repurchase amount under repurchase program | 472,800,000 | ||||
Treasury Stock Associated with Deferred Compensation Plans | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Net amounts recorded to treasury stock related to the deferred compensation plans | $ 6,800,000 | $ 4,400,000 | $ (3,000,000) | ||
Common Stock Withheld for Settlement of Employee Tax Liabilities | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Treasury stock acquired (in shares) | 0.8 | 0.6 | 0.5 | ||
Value of treasury stock acquired, cost method | $ 65,300,000 | $ 25,500,000 | $ 17,400,000 |
Equity - Repurchases of Common
Equity - Repurchases of Common Stock Under Stock Repurchase Programs (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Shares | 721 | 6,680 | 376 |
Amount | $ 63,988 | $ 249,949 | $ 11,954 |
Equity - Non-controlling Intere
Equity - Non-controlling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Income attributable to non-controlling interests | $ 6,027 | $ 6,363 | $ 4,771 |
Non-controlling interests | 4,620 | 4,791 | |
Distributions to non-controlling interests | 6,357 | 5,404 | $ 2,526 |
VIE | |||
Variable Interest Entity [Line Items] | |||
Net Assets | 12,900 | 13,200 | |
Non-controlling interests | $ 4,600 | $ 4,800 |
Equity - Dividends (Details)
Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 01, 2021 | Aug. 27, 2021 | May 27, 2021 | Mar. 25, 2021 | Dec. 11, 2020 | Aug. 26, 2020 | May 28, 2020 | Mar. 26, 2020 | Dec. 11, 2019 | Aug. 28, 2019 | May 24, 2019 | Mar. 21, 2019 | Dec. 06, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||||||||||||||||
Dividend per share (in dollars per share) | $ 0.07 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.25 | $ 0.21 | $ 0.17 |
Dividends declared | $ 10,363 | $ 8,638 | $ 8,650 | $ 8,429 | $ 8,933 | $ 7,244 | $ 7,182 | $ 7,184 | $ 7,371 | $ 5,564 | $ 6,233 | $ 5,896 | $ 5,838 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Incentive Plans (Details) | Dec. 31, 2021shares |
2019 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate number of shares of common stock that may be issued | 7,466,592 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of RSUs and PSUs to be Settled in Common Stock Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock and RSUs to be Settled in Common Stock | |||
Shares | |||
Unvested, shares, beginning of period (in shares) | 3,869 | 3,265 | 2,634 |
Shares granted (in shares) | 1,642 | 2,029 | 2,142 |
Vested, shares (in shares) | (1,476) | (1,269) | (1,349) |
Forfeited, shares (in shares) | (155) | (156) | (162) |
Unvested, shares, end of period (in shares) | 3,880 | 3,869 | 3,265 |
Weighted Average Grant Date Fair Value (Per share) | |||
Unvested, weighted average grant date fair value, beginning of period (in usd per share) | $ 37.57 | $ 35.34 | $ 33.50 |
Weighted average grant date fair value (in dollars per share) | 94.83 | 39.91 | 35.62 |
Vested, weighted average grant date fair value (in usd per share) | 37.03 | 35.69 | 32.22 |
Forfeited, weighted average grant date fair value (in usd per share) | 48.52 | 36.67 | 35.20 |
Unvested, weighted average grant date fair value, end of period (in usd per share) | $ 61.64 | $ 37.57 | $ 35.34 |
PSUs | |||
Shares | |||
Unvested, shares, beginning of period (in shares) | 1,047 | 848 | 775 |
Shares granted (in shares) | 174 | 437 | 358 |
Vested, shares (in shares) | (268) | (238) | (236) |
Forfeited, shares (in shares) | (22) | 0 | (49) |
Unvested, shares, end of period (in shares) | 931 | 1,047 | 848 |
Weighted Average Grant Date Fair Value (Per share) | |||
Unvested, weighted average grant date fair value, beginning of period (in usd per share) | $ 37.65 | $ 40.04 | $ 34.72 |
Weighted average grant date fair value (in dollars per share) | 90.44 | 34.60 | 40.15 |
Vested, weighted average grant date fair value (in usd per share) | 38.28 | 41.87 | 22.73 |
Forfeited, weighted average grant date fair value (in usd per share) | 41.86 | 40.07 | |
Unvested, weighted average grant date fair value, end of period (in usd per share) | $ 47.27 | $ 37.65 | $ 40.04 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and RSUs to be Settled in Common Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash stock compensation expense | $ 88,259 | $ 91,641 | $ 52,013 |
Restricted Stock Units to be Settled in Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of vested restricted stock | 125,700 | 51,600 | 48,700 |
Non-cash stock compensation expense | 67,300 | $ 55,700 | $ 45,500 |
Unrecognized compensation cost, related to unvested restricted stock, total | $ 139,500 | ||
Expected weighted average period to recognize compensation cost on RSUs to be settled in common stock (in years) | 4 years 6 months 14 days | ||
Restricted Stock Units to be Settled in Common Stock | Equal Installments | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock Units to be Settled in Common Stock | Minimum | Unequal Installments | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Restricted Stock Units to be Settled in Common Stock | Maximum | Unequal Installments | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 10 years |
Stock-Based Compensation - PSUs
Stock-Based Compensation - PSUs to be Settled in Common Stock (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash stock compensation expense | $ 88,259 | $ 91,641 | $ 52,013 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Required performance period | 3 years | ||
Non-cash stock compensation expense | $ 21,000 | $ 35,900 | $ 6,500 |
Unrecognized compensation cost, related to unvested restricted stock, total | $ 17,500 | ||
Expected weighted average period to recognize compensation cost on RSUs to be settled in common stock (in years) | 1 year 7 months 28 days | ||
Number of common shares issued in connection with performance units (in shares) | 0.5 | 0.5 | 0.4 |
Fair value of vested restricted stock | $ 45,200 | $ 18,300 | $ 13,100 |
PSUs | Valuation Correction Related to Fiscal Years 2017 Through 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Charge to correct valuation correction | 14,000 | ||
PSUs | Valuation Correction Related To Fiscal Year 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Charge to correct valuation correction | $ 7,200 | ||
PSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance units performance percentage | 0.00% | ||
PSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance units performance percentage | 200.00% |
Stock-Based Compensation - Gran
Stock-Based Compensation - Grant Date Fair Value for Awards of Performance Units Inputs (Details) - PSUs - $ / shares | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 25, 2021 | Mar. 26, 2020 | Mar. 08, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price (in usd per share) | $ 83.48 | $ 31.49 | $ 35.19 | |||
Expected volatility | 36.00% | 34.00% | 25.00% | |||
Risk-free interest rate | 0.26% | 0.35% | 2.43% | |||
Term in years | 2 years 9 months 7 days | 2 years 9 months 3 days | 2 years 9 months 21 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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Number of common stock shares that may be received by RSU holder (in shares) | 1 | ||
Compensation expense related to RSUs to be settled in cash | $ 17.4 | $ 9.4 | $ 5.9 |
Payments to settle liabilities under compensation plan | 13.2 | 4.3 | $ 5.4 |
Accrued liabilities under compensation plan | $ 11.1 | $ 8.7 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of employees covered by collective bargaining agreements | 35.00% | ||
Contributions | $ 132,996 | $ 121,978 | $ 134,197 |
Percentage of contribution by employer of each employee's contribution up to 3% | 100.00% | ||
Percentage of contribution by employer of each employee who contributes between 3% and 6% | 50.00% | ||
Contributions to Quanta 401(k) Plan | $ 50,700 | 45,900 | 41,400 |
Contributions to the deferred compensation plans | 1,400 | 1,300 | 1,100 |
Discretionary contributions | 0 | 0 | 0 |
Deferred compensation obligations included in other long-term liabilities | 74,200 | 58,200 | |
Investments in company-owned life insurance policies | 73,800 | 56,500 | |
Increase to fair market value of plan assets | 8,600 | 6,900 | 7,900 |
Increase to fair market value of plan liabilities | $ 10,400 | 7,500 | 9,300 |
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of employee contribution, lower range | 3.00% | ||
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of employee contribution, lower range | 6.00% | ||
Multiemployer Defined Contribution and Other Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions | $ 213,400 | $ 188,600 | $ 201,300 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Plan Information Relating to Participation in Multiemployer Pension Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Multiemployer Plans [Line Items] | |||
Contributions | $ 132,996 | $ 121,978 | $ 134,197 |
National Electrical Benefit Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 38,195 | 40,902 | 44,414 |
Excavators Union Local 731 Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 16,202 | 14,310 | 6,697 |
Central Pension Fund of the IUOE & Participating Employers | |||
Multiemployer Plans [Line Items] | |||
Contributions | 11,237 | 8,467 | 11,638 |
Pipeline Industry Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 5,081 | 3,654 | 9,376 |
Laborers Pension Trust Fund for Northern California | |||
Multiemployer Plans [Line Items] | |||
Contributions | 4,479 | 2,328 | 2,823 |
Operating Engineers’ Local 324 Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,789 | 2,629 | 4,315 |
IBEW Local 1249 Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,667 | 530 | 771 |
Local 697 IBEW and Electrical Industry Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,229 | 1,840 | 3,717 |
Pension Trust Fund for Operating Engineers | |||
Multiemployer Plans [Line Items] | |||
Contributions | 1,755 | 1,177 | 956 |
Eighth District Electrical Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 1,599 | 4,272 | 5,939 |
Laborers District Council of W PA Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 1,375 | 77 | 1,194 |
Teamsters National Pipe Line Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Contributions | 1,276 | 1,380 | 3,039 |
Operating Engineers Pension Trust | |||
Multiemployer Plans [Line Items] | |||
Contributions | 1,143 | 172 | 119 |
Laborers National Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 1,049 | 638 | 1,910 |
Plumbers and Pipefitters National Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 932 | 1,453 | 1,162 |
Michigan Laborers’ Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Contributions | 737 | 512 | 1,491 |
Employer-Teamsters Local Nos 175 & 505 Pension Trust Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 151 | 48 | 530 |
All other plans - U.S. | |||
Multiemployer Plans [Line Items] | |||
Contributions | 37,306 | 30,829 | 27,655 |
All other plans - Canada | |||
Multiemployer Plans [Line Items] | |||
Contributions | $ 2,794 | $ 6,760 | $ 6,451 |
Commitments and Contingencies -
Commitments and Contingencies - Committed Expenditures (Details) $ in Millions | Dec. 31, 2021USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Estimated committed in first half of 2022 | $ 71.3 |
Vehicle Fleet Committed Capital | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Estimated committed capital in next fiscal year | $ 96 |
Commitments and Contingencies_2
Commitments and Contingencies - Legal Proceedings (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | 24 Months Ended | 52 Months Ended | ||||||||||
Jan. 31, 2022USD ($) | Jul. 31, 2021USD ($) | Aug. 31, 2020USD ($) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2020USD ($) | Apr. 30, 2019USD ($) | Nov. 30, 2021USD ($) | Aug. 31, 2019building | |
Loss Contingencies [Line Items] | |||||||||||||||
Gross profit | $ 1,953,259 | $ 1,660,847 | $ 1,600,252 | ||||||||||||
Number of buildings with property damage | building | 2 | ||||||||||||||
Termination of the Peru Telecommunications Project | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Recorded charges | $ 79,200 | $ 79,200 | |||||||||||||
Net receivable position on projects | 120,000 | ||||||||||||||
Scenario, Adjustment | Correction Of Estimated Project Costs And Percentage Of Completion Method [Member] | Termination of the Peru Telecommunications Project | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Gross profit | $ (14,500) | ||||||||||||||
Lorenzo Benton v Telecom Network Specialists Inc | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damages sought | $ 37,000 | ||||||||||||||
Lorenzo Benton v Telecom Network Specialists Inc | Subsequent Event | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damages sought | $ 17,600 | ||||||||||||||
Lorenzo Benton v Telecom Network Specialists Inc | Maximum | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Reasonably possible amount of loss | 9,500 | ||||||||||||||
Damages awarded | $ 9,500 | ||||||||||||||
Redes | Termination of the Peru Telecommunications Project | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Advance payments received | $ 87,000 | ||||||||||||||
On-demand performance bonds | $ 25,000 | ||||||||||||||
Payment of arbitration | $ 190,000 | ||||||||||||||
Construction costs incurred | $ 157,000 | ||||||||||||||
Payments received on construction contracts | $ 100,000 | ||||||||||||||
Net receivable position on projects | $ 87,000 | ||||||||||||||
Redes | Telecommunication Networks Construction and Operation | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Term of post-construction operation and maintenance period | 10 years | ||||||||||||||
Redes | Telecommunication Networks Construction and Operation | Termination of the Peru Telecommunications Project | |||||||||||||||
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 | ||||||||||||||
QPS | Maurepas Project Dispute | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damages sought | $ 22,000 | ||||||||||||||
Maurepas | Maurepas Project Dispute | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damages sought | $ 59,000 | ||||||||||||||
PRONATEL | Termination of the Peru Telecommunications Project | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Damages sought | $ 40,000 | $ 45,000 | |||||||||||||
Bond proceeds received | $ 112,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Silverado Wildfire Matter (Details) - Silverado Wildfire | 1 Months Ended |
Oct. 31, 2020a | |
Loss Contingencies [Line Items] | |
Damaged land (in acres) | 13,000 |
Time of pole replacement before fire | 19 months |
Commitments and Contingencies_4
Commitments and Contingencies - Concentrations of Credit Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||||
Ownership percentage of customer in joint venture | 50.00% | ||||
Accounts receivable | $ 49,749 | $ 16,546 | $ 9,398 | $ 5,839 | |
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 | ||||
One Customer | Customer Concentration Risk | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 11.00% | ||||
Customer With Joint Venture Interest | Customer Concentration Risk | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 11.00% | ||||
Limetree Bay Refining, LLC And Limetree Bay Terminals, LLC | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 31,700 |
Commitments and Contingencies_5
Commitments and Contingencies - Insurance (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitment And Contingencies [Line Items] | ||
Insurance and other non-current liabilities | $ 487,309 | $ 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 | 318,200 | 319,500 |
Insurance and other non-current liabilities | 238,000 | 238,000 |
Related insurance recoveries/receivables | 28,600 | 35,600 |
Related insurance recoveries/receivables included in prepaid expenses and other current assets | 400 | 400 |
Related insurance recoveries/receivables included in other assets | $ 28,200 | $ 35,200 |
Commitments and Contingencies_6
Commitments and Contingencies - Letters of Credit (Details) $ in Millions | Dec. 31, 2021USD ($) |
Letters of Credit | Senior Credit Facility | |
Loss Contingencies [Line Items] | |
Outstanding letters of credit and bank guarantees | $ 318.2 |
Commitments and Contingencies_7
Commitments and Contingencies - Performance Bonds and Parent Guarantees (Details) - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2019 | Dec. 31, 2021 | |
Termination of the Peru Telecommunications Project | PRONATEL | ||
Loss Contingencies [Line Items] | ||
Bond proceeds received | $ 112 | |
Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Total amount of outstanding performance bonds | $ 3,900 | |
Performance Guarantee | Estimate | ||
Loss Contingencies [Line Items] | ||
Estimated cost to complete bonded projects | $ 1,200 |
Commitments and Contingencies_8
Commitments and Contingencies - Residual Value Guarantees (Details) $ in Millions | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Maximum guaranteed residual value | $ 891.8 |
Commitments and Contingencies_9
Commitments and Contingencies - Deferral of Employer Payroll Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 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% |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Consideration Liabilities (Details) - Level 3 - Recurring - Valuation, Market Approach | Dec. 31, 2021 |
Volatility | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liability, measurement input | 0.500 |
Minimum | Discount Rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liability, measurement input | 0.0004 |
Maximum | Discount Rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liability, measurement input | 0.039 |
Weighted Average | Discount Rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liability, measurement input | 0.019 |
Fair Value Measurements - Long-
Fair Value Measurements - Long-Term Debt (Details) - Senior Notes $ in Millions | Dec. 31, 2021USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of notes | $ 2,490 |
Long-term debt | 2,470 |
Unamortized discount and deferred financing costs related to senior notes | $ 27 |
Detail of Certain Accounts - Ca
Detail of Certain Accounts - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 229,097 | $ 184,620 | $ 164,798 | $ 78,687 |
Cash equivalents | 140,000 | 98,000 | ||
Held in Domestic Bank Accounts | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 205,781 | 156,122 | ||
Held in Foreign Bank Accounts | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 23,316 | 28,498 | ||
Held by Domestic Joint Ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 21,828 | 7,714 | ||
Held by Foreign Joint Ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 3,461 | 3,973 | ||
Held by Joint Ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 25,289 | 11,687 | ||
Captive Insurance Company | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 133,302 | 85,014 | ||
Not Held by Joint Ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 70,506 | $ 87,919 |
Detail of Certain Accounts - Pr
Detail of Certain Accounts - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Finance lease assets and rental purchase options | $ 64,256 | $ 52,160 | |
Property and equipment, gross | 3,423,195 | 2,932,788 | |
Less — Accumulated depreciation and amortization | (1,503,498) | (1,372,132) | |
Property and equipment, net of accumulated depreciation | 1,919,697 | 1,560,656 | |
Depreciation | 255,529 | 225,256 | $ 218,107 |
Asset impairment charges | 5,743 | 8,282 | $ 13,892 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 86,013 | 69,389 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 318,499 | $ 249,106 | |
Buildings and leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | 5 years | |
Buildings and leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 30 years | 30 years | |
Operating machinery, equipment and vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 2,603,149 | $ 2,297,120 | |
Operating machinery, equipment and vehicles | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 1 year | 1 year | |
Operating machinery, equipment and vehicles | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 25 years | 25 years | |
Office equipment, furniture and fixtures and information technology systems | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 259,776 | $ 244,113 | |
Office equipment, furniture and fixtures and information technology systems | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | 3 years | |
Office equipment, furniture and fixtures and information technology systems | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years | 10 years | |
Construction work in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 91,502 | $ 20,900 | |
Finance lease assets and rental purchase options | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | 5 years | |
Finance lease assets and rental purchase options | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 20 years | 20 years |
Detail of Certain Accounts - Ac
Detail of Certain Accounts - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable, trade | $ 1,251,118 | $ 798,023 |
Accrued compensation and related expenses | 547,161 | 378,002 |
Other accrued expenses | 456,392 | 333,769 |
Accounts payable and accrued expenses | $ 2,254,671 | $ 1,509,794 |
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accounts and notes receivable | $ (248,452) | $ 71,058 | $ (214,580) |
Contract assets | (331,946) | 153,832 | (12,317) |
Inventories | 1,418 | 9,860 | 52,168 |
Prepaid expenses and other current assets | (6,503) | 83,518 | (60,475) |
Accounts payable and accrued expenses and other non-current liabilities | 95,829 | 115,569 | 39,419 |
Contract liabilities | 47,163 | (84,370) | 174,230 |
Other, net | (15,191) | (22,098) | (135,250) |
Net change in operating assets and liabilities, net of non-cash transactions | $ (457,682) | $ 327,369 | (156,805) |
Payments of on-demand advance payment bonds | 87,000 | ||
Payments of on-demand performance bonds | $ 25,000 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 229,097 | $ 184,620 | $ 164,798 | $ 78,687 |
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows | 231,887 | 186,808 | 169,745 | 83,256 |
Prepaid Expenses and Other Current Assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | 1,836 | 1,275 | 4,026 | 3,286 |
Other Assets, Net | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 954 | $ 913 | $ 921 | $ 1,283 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ (104,434) | $ (115,597) | $ (119,357) |
Operating cash flows from finance leases | (90) | (108) | (64) |
Financing cash flows from finance leases | (1,001) | (1,198) | (1,835) |
Lease assets obtained in exchange for lease liabilities: | |||
Operating leases | 73,713 | 69,721 | 96,550 |
Finance leases | 1,044 | 1,384 | 691 |
Rental purchase option assets obtained in exchange for rental purchase option liabilities | $ 11,713 | $ 35,734 | $ 12,229 |
Supplemental Cash Flow Inform_6
Supplemental Cash Flow Information - Additional Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest paid | $ (52,737) | $ (32,142) | $ (64,805) |
Income taxes paid | (125,328) | (231,186) | (116,467) |
Income tax refunds | $ 13,257 | $ 18,119 | $ 7,474 |
Supplemental Cash Flow Inform_7
Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Accrued capital expenditures | $ 27.4 | $ 11.3 |
Fair value of assets contributed as partial consideration | 6.1 | |
Note receivable recorded for the sale of an investment | $ 4.7 |