Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 19, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2023 | ||
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 | 2727 North Loop West | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77008 | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 28.2 | ||
Entity Common Stock, Shares Outstanding | 145,748,976 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement for the 2024 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 | 2023 | ||
Entity Central Index Key | 0001050915 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 1,290,248 | $ 428,505 |
Accounts receivable, net | 4,410,829 | 3,674,525 |
Contract assets | 1,413,057 | 1,080,206 |
Inventories | 175,658 | 103,265 |
Prepaid expenses and other current assets | 387,105 | 249,569 |
Total current assets | 7,676,897 | 5,536,070 |
Property and equipment, net | 2,336,943 | 2,030,464 |
Operating lease right-of-use assets | 249,443 | 229,691 |
Other assets, net | 565,625 | 622,736 |
Other intangible assets, net | 1,362,412 | 1,458,631 |
Goodwill | 4,045,905 | 3,586,745 |
Total assets | 16,237,225 | 13,464,337 |
Current Liabilities: | ||
Current maturities of long-term debt | 535,202 | 37,495 |
Current portion of operating lease liabilities | 77,995 | 74,052 |
Accounts payable and accrued expenses | 3,061,242 | 2,153,129 |
Contract liabilities | 1,538,677 | 1,141,518 |
Total current liabilities | 5,213,116 | 3,406,194 |
Long-term debt, net of current maturities | 3,663,504 | 3,692,432 |
Operating lease liabilities, net of current portion | 186,996 | 171,512 |
Deferred income taxes | 254,004 | 227,861 |
Insurance and other non-current liabilities | 636,250 | 567,519 |
Total liabilities | 9,953,870 | 8,065,518 |
Commitments and Contingencies | ||
Equity: | ||
Common stock | 2 | 2 |
Additional paid-in capital | 3,002,652 | 2,718,988 |
Retained earnings | 4,858,066 | 4,163,212 |
Accumulated other comprehensive loss | (282,945) | (310,677) |
Treasury stock, 28,440,462 and 27,707,927 common shares | (1,305,534) | (1,188,061) |
Total stockholders’ equity | 6,272,241 | 5,383,464 |
Non-controlling interests | 11,114 | 15,355 |
Total equity | 6,283,355 | 5,398,819 |
Total liabilities and equity | $ 16,237,225 | $ 13,464,337 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
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) | 173,949,011 | 170,638,525 |
Common stock, shares outstanding (in shares) | 145,508,549 | 142,930,598 |
Treasury stock, common, shares (in shares) | 28,440,462 | 27,707,927 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenues | $ 20,882,206 | $ 17,073,903 | $ 12,980,213 |
Cost of services | 17,945,120 | 14,544,748 | 11,026,954 |
Gross profit | 2,937,086 | 2,529,155 | 1,953,259 |
Equity in earnings of integral unconsolidated affiliates | 41,609 | 52,466 | 44,061 |
Selling, general and administrative expenses | (1,555,137) | (1,336,711) | (1,155,956) |
Amortization of intangible assets | (289,014) | (353,973) | (165,366) |
Asset impairment charges | 0 | (14,457) | (5,743) |
Change in fair value of contingent consideration liabilities | (6,568) | (4,422) | (6,734) |
Operating income | 1,127,976 | 872,058 | 663,521 |
Interest and other financing expenses | (186,913) | (124,363) | (68,899) |
Interest income | 10,830 | 2,606 | 3,194 |
Other income (expense), net | 18,063 | (46,415) | 25,085 |
Income before income taxes | 969,956 | 703,886 | 622,901 |
Provision for income taxes | 219,267 | 192,243 | 130,918 |
Net income | 750,689 | 511,643 | 491,983 |
Less: Net income attributable to non-controlling interests | 6,000 | 20,454 | 6,027 |
Net income attributable to common stock | $ 744,689 | $ 491,189 | $ 485,956 |
Earnings per share attributable to common stock: | |||
Basic (in dollars per share) | $ 5.13 | $ 3.42 | $ 3.45 |
Diluted (in dollars per share) | $ 5 | $ 3.32 | $ 3.34 |
Shares used in computing earnings per share: | |||
Weighted average basic shares outstanding (in shares) | 145,222 | 143,488 | 140,824 |
Weighted average diluted shares outstanding (in shares) | 148,823 | 147,992 | 145,373 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 750,689 | $ 511,643 | $ 491,983 |
Other comprehensive income (loss), net of taxes: | |||
Foreign currency translation adjustment income (loss) | 26,707 | (72,632) | (5,877) |
Other income (loss) | 1,025 | (356) | 1,185 |
Other comprehensive income (loss), net of taxes | 27,732 | (72,988) | (4,692) |
Comprehensive income | 778,421 | 438,655 | 487,291 |
Less: Comprehensive income attributable to non-controlling interests | 6,000 | 20,454 | 6,027 |
Comprehensive income attributable to common stock | $ 772,421 | $ 418,201 | $ 481,264 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | |||
Net income | $ 750,689 | $ 511,643 | $ 491,983 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 324,786 | 290,647 | 255,529 |
Amortization of intangible assets | 289,014 | 353,973 | 165,366 |
Equity in earnings of unconsolidated affiliates, net of distributions | 24,209 | (19,238) | (28,682) |
Loss from mark-to-market adjustment on investment | 0 | 91,500 | 0 |
Gains on sales of investments | (3,524) | (32,572) | 0 |
Increase in provision for credit losses | 5,927 | 350 | 34,890 |
Deferred income tax expense | 3,816 | 42,053 | 26,071 |
Non-cash stock-based compensation | 126,762 | 105,600 | 88,259 |
Other non-cash adjustments, net | (8,344) | 16,071 | 6,656 |
Changes in assets and liabilities, net of non-cash transactions: | |||
Accounts and notes receivable | (615,668) | (349,485) | (248,452) |
Contract assets | (303,064) | (311,175) | (331,946) |
Prepaid expenses and other current assets | (90,329) | (15,615) | (6,503) |
Accounts payable and accrued expenses and other non-current liabilities | 771,854 | 144,219 | 95,829 |
Contract liabilities | 293,106 | 336,113 | 47,163 |
Other assets and liabilities, net | 6,718 | (33,772) | (13,773) |
Net cash provided by operating activities | 1,575,952 | 1,130,312 | 582,390 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (434,803) | (427,630) | (385,852) |
Proceeds from sale of and insurance settlements related to property and equipment | 69,347 | 64,123 | 49,721 |
Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired | (651,623) | (195,087) | (2,451,703) |
Investments in unconsolidated affiliates and other | (7,537) | (78,084) | (139,021) |
Proceeds from the sale or settlement of certain investments | 42,277 | 20,639 | 29,109 |
Other, net | (7,311) | (1,152) | (867) |
Net cash used in investing activities | (989,650) | (617,191) | (2,898,613) |
Cash Flows from Financing Activities: | |||
Borrowings under credit facility and commercial paper program | 18,178,910 | 9,300,142 | 5,316,002 |
Payments under credit facility and commercial paper program | (17,770,246) | (9,323,507) | (4,265,478) |
Proceeds from notes offerings | 0 | 0 | 1,487,450 |
Payments related to tax withholding for stock-based compensation | (119,793) | (82,590) | (64,956) |
Payments of dividends | (47,752) | (41,058) | (34,022) |
Repurchase of common stock | (350) | (127,762) | (66,687) |
Other, net | 27,731 | (36,296) | (11,432) |
Net cash provided by (used in) financing activities | 268,500 | (311,071) | 2,360,877 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 7,025 | (723) | 425 |
Net increase in cash, cash equivalents and restricted cash | 861,827 | 201,327 | 45,079 |
Cash, cash equivalents and restricted cash, beginning of year | 433,214 | 231,887 | 186,808 |
Cash, cash equivalents and restricted cash, end of year | $ 1,295,041 | $ 433,214 | $ 231,887 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Stockholders' Equity | Non-controlling Interests |
Beginning Balance (in shares) at Dec. 31, 2020 | 138,300,191 | |||||||
Beginning Balance at Dec. 31, 2020 | $ 4,348,972 | $ 2 | $ 2,170,026 | $ 3,264,967 | $ (232,997) | $ (857,817) | $ 4,344,181 | $ 4,791 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Other comprehensive income (loss) | (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, net | (6,357) | (6,357) | ||||||
Other | 159 | 159 | ||||||
Net income | 491,983 | 485,956 | 485,956 | 6,027 | ||||
Ending Balance (in shares) at Dec. 31, 2021 | 142,633,934 | |||||||
Ending Balance at Dec. 31, 2021 | 5,116,921 | $ 2 | 2,615,410 | 3,714,843 | (237,689) | (980,265) | 5,112,301 | 4,620 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Other comprehensive income (loss) | (72,988) | (72,988) | (72,988) | |||||
Stock-based compensation activity (in shares) | 1,357,661 | |||||||
Stock-based compensation activity | 23,529 | 103,578 | (80,049) | 23,529 | ||||
Common stock repurchases (in shares) | (1,060,997) | |||||||
Common stock repurchases | (127,747) | (127,747) | (127,747) | |||||
Dividend declared | (42,820) | (42,820) | (42,820) | |||||
Distributions to non-controlling interests, net | (9,946) | (9,946) | ||||||
Other | 227 | 227 | ||||||
Net income | $ 511,643 | 491,189 | 491,189 | 20,454 | ||||
Ending Balance (in shares) at Dec. 31, 2022 | 142,930,598 | 142,930,598 | ||||||
Ending Balance at Dec. 31, 2022 | $ 5,398,819 | $ 2 | 2,718,988 | 4,163,212 | (310,677) | (1,188,061) | 5,383,464 | 15,355 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Other comprehensive income (loss) | 27,732 | 27,732 | 27,732 | |||||
Acquisitions (in shares) | 1,238,576 | |||||||
Acquisitions | 158,922 | 158,922 | 158,922 | |||||
Stock-based compensation activity (in shares) | 1,341,604 | |||||||
Stock-based compensation activity | 7,619 | 124,742 | (117,123) | 7,619 | ||||
Common stock repurchases (in shares) | (2,229) | |||||||
Common stock repurchases | (350) | (350) | (350) | |||||
Dividend declared | (49,835) | (49,835) | (49,835) | |||||
Distributions to non-controlling interests, net | (10,241) | (10,241) | ||||||
Net income | $ 750,689 | 744,689 | 744,689 | 6,000 | ||||
Ending Balance (in shares) at Dec. 31, 2023 | 145,508,549 | 145,508,549 | ||||||
Ending Balance at Dec. 31, 2023 | $ 6,283,355 | $ 2 | $ 3,002,652 | $ 4,858,066 | $ (282,945) | $ (1,305,534) | $ 6,272,241 | $ 11,114 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | |||||||||||||||
Dec. 05, 2023 | Aug. 30, 2023 | May 23, 2023 | Mar. 29, 2023 | Dec. 13, 2022 | Aug. 31, 2022 | May 27, 2022 | Mar. 31, 2022 | Dec. 01, 2021 | Aug. 27, 2021 | May 27, 2021 | Mar. 25, 2021 | Dec. 11, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||||||||
Dividends declared per share (in dollars per share) | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.33 | $ 0.29 | $ 0.25 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS: Quanta Services, Inc. (together with its subsidiaries, Quanta) is a leading provider of 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. We provide engineering, procurement, construction, upgrade and repair and maintenance services for infrastructure within each of these industries, including electric power transmission and distribution networks; substation facilities; wind and solar generation and transmission and battery storage facilities; communications and cable multi-system operator networks; gas utility systems; pipeline transmission systems and facilities; and downstream industrial facilities. |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | BASIS OF PRESENTATION AND 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 accounting policies. Unless the context requires otherwise, references to Quanta include Quanta Services, Inc. and its consolidated subsidiaries. Quanta holds interests in various 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 are variable interest entities (VIE). 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 equity interest in the VIE held by a third party is accounted for as a non-controlling interest. See Note 13 for additional information on non-controlling interests and Note 16 for additional information on joint venture liabilities. 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; fair value assumptions in analyzing equity and other investment impairments; purchase price consideration and allocations; acquisition-related contingent consideration liabilities; contingent liabilities associated with, among other things, legal proceedings and claims, parent guarantees and indemnity obligations; estimated insurance claims and recoveries; stock-based compensation; classification of operating company revenues by type of work for segment reporting purposes; 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. Cash and Cash Equivalents 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. Quanta’s cash equivalents are categorized as Level 1 assets, as all values are based on unadjusted quoted prices for identical assets in an active market. Inventories Inventories consist primarily of parts and supplies held for use in the ordinary course of business, which are valued 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. 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 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 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 its historical acquisitions of businesses. 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. Goodwill is tested for impairment annually in the fourth quarter of the fiscal year, or more frequently if events or circumstances arise which indicate that the fair value of a reporting unit with goodwill is below its carrying amount. Quanta assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Qualitative factors assessed for each reporting unit 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. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recorded to “Asset impairment charges” in the consolidated statements of operations. 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). 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. 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 historical and projected results. 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 identifiable intangible assets include customer relationships; backlog; trade names; non-compete agreements; curriculum; patented rights, developed technology, process certifications and other, all of which are subject to amortization, as well as an engineering license, which is not subject to amortization. Definite-lived intangible assets are amortized 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. Quanta evaluates identifiable intangible assets with the associated long-lived asset group for impairment whenever impairment indicators are present. If the carrying amount of an identifiable intangible asset exceeds its fair value, an impairment loss is recorded to “Asset impairment charges” in the consolidated statements of operations. Leases Leases with terms longer than 12 months are recorded on the consolidated balance sheets as lease assets and lease liabilities. If at inception of a contract a lease is identified, Quanta recognizes a lease asset and corresponding liability based on the present value of the future minimum lease payments over the lease term as of the commencement date. Lease assets also include any initial direct costs incurred less any lease incentives received. 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; 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. Lease expense for leases with an initial term of 12 months or less is recognized on a straight-line basis over the lease term. The terms of Quanta’s lease arrangements vary, and certain leases include one or more of the following: a renewal option, 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. Additionally, certain of Quanta’s real estate and equipment arrangements contain both lease and non-lease components (e.g., maintenance services). Quanta made a policy election that allows an entity to not separate lease components from their associated non-lease components under arrangements with both components. Accordingly, Quanta accounts for both lease and non-lease components of such arrangements under the lease accounting guidance. Determinations with respect to lease term, 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, 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. 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. In cases where Quanta determines that it is not the primary beneficiary but 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. See Note 8 for additional information on Quanta’s investments and Note 16 for additional information on joint venture liabilities. Equity Method Investments Investments in affiliated entities in which Quanta does not have a controlling financial interest, but over which Quanta has the ability to exercise 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. Under the equity method of accounting, investments are stated initially at cost and are adjusted for subsequent additional investments and Quanta’s proportionate share of profit or loss and distributions. Certain of Quanta’s equity method investments are equity interests in private equity funds. These underlying private equity funds are carried at fair value. Quanta’s profit or loss is determined by its share of the change in fair value. Quanta’s equity method investments are reported in “Other assets, net” in the accompanying consolidated balance sheets. Quanta’s share of net income or losses of these investments is reported as “Equity in earnings of integral unconsolidated affiliates” within operating income when the investee is integral to the operations of Quanta, and is reported as “Other income (expense), net” when the investee is not considered integral to the business. Additionally, Quanta utilizes the cumulative earnings approach to determine whether distributions received from equity method investees are returns on investment and classified as operating cash inflows or returns of investment and reported as investing cash flows. Quanta recognizes impairments on equity method investments if there are sufficient indicators that the fair value of the investment is less than its carrying value and considered other-than-temporary. Any impairment losses related to integral unconsolidated affiliates are included in “Equity in earnings of integral unconsolidated affiliates,” while any impairments related to non-integral unconsolidated affiliates are included in “Other income (expense), net” in the accompanying consolidated statement of operations. Marketable and Non-Marketable Equity Securities Investments in entities over which Quanta does not have the ability to exercise significant influence are either considered marketable securities or non-marketable equity securities. The carrying value of any marketable and non-marketable equity securities is reported in “Other assets, net” in the accompanying consolidated balance sheets. Marketable equity securities are equity securities with a readily determinable fair value (RDFV) that are measured and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded in “Other income (expense), net” in the accompanying consolidated statements of operations. Since the RDFV of marketable equity securities is determined utilizing quoted market prices, the level of input used for these fair value measurements is the highest level (Level 1). Non-marketable equity securities are equity securities without a RDFV that are measured and recorded using a measurement alternative that measures the securities 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. Non-marketable equity securities are measured on a nonrecurring basis and recorded at fair value only if an impairment or observable price adjustment is recognized in the reporting period. Quanta recognizes impairments on non-marketable equity securities if there are sufficient indicators that the fair value of the investment is less than its carrying value. Changes in fair value and any impairments of non-marketable equity securities are reported in “Other income (expense), 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 Quanta’s 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. 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. 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. 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 insures all claims up to the amount of the applicable deductible of its third-party insurance programs, as well as with respect to certain other amounts. In connection with Quanta’s casualty insurance programs, Quanta is required to issue letters of credit to secure its obligations. Quanta also maintains employee health care benefit plans for most employees not subject to collective bargaining agreements. 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. Stock-Based Compensation Restricted Stock Units to be Settled in Stock Quanta recognizes compensation expense for restricted stock units (RSUs) to be settled in common stock based on the grant date fair value of the awards, which is the number of RSUs granted multiplied by the closing price of Quanta’s common stock on the date of grant, net of estimated forfeitures. The resulting compensation expense for time-based RSU awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. The non-cash stock compensation expense related to RSUs to be settled in common stock is included in “Selling, general and administrative expenses.” 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 Payments made by Quanta to satisfy employee tax withholding obligations associated with stock-based compensation are classified as financing cash flows. Performance Stock Units to be Settled in Stock Quanta recognizes compensation expense for performance stock units (PSUs) to be settled in common stock based on the fair value of the awards, net of estimated forfeitures. The resulting compensation expense for PSU awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. Non-cash stock compensation expense related to PSUs to be settled in common stock is included in “Selling, general and administrative expenses.” PSUs provide for the issuance of shares of common stock upon vesting, which occurs following a three-year performance period based on achievement of 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 or a broad equity market index. 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. 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 that ultimately vests; however, payment of such amounts is not made until the PSUs vest, such that the dividend equivalent payments are subject to forfeiture until vesting of the applicable PSUs. The grant date fair value of the PSUs is determined as follows: (i) for the portion of the awards based on company financial and operational 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, by multiplying the number of units granted by a stock price estimated by utilizing a Monte Carlo simulation valuation methodology. Quanta recognizes compensation expense for PSUs, net of estimated forfeitures, 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 grant date fair value of the total number of shares of common stock that Quanta anticipates will be issued based on such achievement for the completed portion of the three-year period Payments made by Quanta to satisfy employee tax withholding obligations associated with stock-based compensation are classified as financing cash flows. 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 (expense), net” in the accompanying consolidated statements of operations. Fair Value Measurements Quanta categorizes assets and liabilities, measured at fair value, into one of three different levels depending on the observability of the inputs employed in the measurement. Level 1 inputs are quoted prices for identical instruments in active markets. Level 2 inputs are quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable. Level 3 inputs are model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. Inputs, valuation techniques to estimate the fair value and levels are disclosed within the notes to these consolidated financial statements. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS: Recently Adopted Guidance In October 2021, the Financial Accounting Standards Board (FASB) issued an update that requires recognition and measurement of contract assets and contract liabilities acquired in a business combination in accordance with FASB ASC 606 (Revenue from Contracts with Customers). At the acquisition date, an acquirer should account for the related contract revenue in accordance with FASB ASC 606. This update is effective for interim and annual periods beginning after December 15, 2022, with amendments generally applied prospectively. Quanta adopted this update effective January 1, 2023, and it did not have a material impact on Quanta’s consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In June 2022, the FASB issued an update that clarifies the guidance in FASB ASC 820 (Fair Value Measurement) for equity securities subject to contractual sale restrictions. The update prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. This update is effective for interim and annual periods beginning after December 15, 2023. This guidance will increase the fair market value of the consideration paid in equity securities in a business combination, and therefore it may increase the amount allocated to goodwill. Quanta adopted this update effective January 1, 2024, and it did not have a material impact on Quanta’s consolidated financial statements. In November 2023, the FASB issued an update that, among other things, requires public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, provide an amount for other segment items by reportable segment and provide all segment disclosures required on an annual basis in interim periods. Additionally, the update requires entities to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measures(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and retrospective application is required. Quanta is currently assessing the effect of this update. In December 2023, the FASB issued an update that expands disclosures for tax rate reconciliation tables, primarily by requiring disaggregation of income taxes paid by jurisdiction, as well as specific categories and greater disaggregation within the rate reconciliation. This update is effective for fiscal years beginning after December 15, 2024 and interim periods within fiscal years beginning after December 15, 2025. Early adoption and retrospective application are permitted. Quanta is currently assessing the effect of this update. |
Revenue Recognition and Related
Revenue Recognition and Related Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2023 | |
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 are generally 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. As of December 31, 2023 and 2022, the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations was approximately $13.89 billion and $8.80 billion, with 66.9% and 72.1% 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 VIEs, 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 of 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. There were no significant capitalized costs during the years ended December 31, 2023, 2022 and 2021. Quanta provides limited warranties to customers for work performed under its contracts that typically extend for a limited duration following substantial completion of its work on a project. Such warranties are not sold separately and do not provide customers with a service other than the assurance of compliance with agreed-upon specifications. Accordingly, these types of warranties are not considered to be separate performance obligations, but any costs incurred by Quanta in connection with these warranties are included in contract costs. During the years ended December 31, 2023, 2022 and 2021, Quanta has not been subject to a significant number of material warranty claims in connection with its services. Contract Estimates and Changes in Estimates Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors, including unforeseen or changed circumstances not included in Quanta’s cost estimates or covered by its contracts. Some of the factors that can result in positive changes in estimates on projects include successful execution through project risks, reduction of estimated project costs or increases of estimated revenues. Some of the factors that can result in negative changes in estimates include concealed or unknown site conditions; changes to or disputes with customers regarding the scope of services; changes in estimates related to the length of time to complete a performance obligation; changes or delays with respect to permitting and regulatory requirements and materials; 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; and performance and quality issues causing delay (including payment of liquidated damages) or requiring rework or replacement. 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. Additionally, 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 reasonably 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, 2023 and 2022, Quanta had recognized revenues of $778.9 million and $549.3 million related to unapproved change orders and claims included as contract price adjustments primarily in “Contract assets” in the accompanying consolidated balance sheets. These change orders and claims were in the process of being negotiated in the normal course of business and represent management’s estimates of additional contract revenues that have been earned and are probable of collection. The largest component of the revenues recognized related to unapproved change orders and claims as of December 31, 2023 and of the increase relative to December 31, 2022 is associated with a large renewable transmission project in Canada. During 2021 and 2022, decreased productivity and additional costs arose from delays, administrative requirements and labor issues due to the COVID-19 pandemic, including incremental governmental requirements and worksite restrictions. During the year ended December 31, 2023, additional costs arose from residual impacts associated with the aforementioned items, work resequencing and acceleration, access delays, and logistical challenges along with other issues outside of Quanta’s control. 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 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. Revenues were positively impacted by 0.4%, 0.7% and 1.0% during the years ended December 31, 2023, 2022 and 2021 as a result of changes in estimates associated with performance obligations on fixed price contracts partially satisfied prior to December 31, 2022, 2021 and 2020. Operating results for the year ended December 31, 2023 were impacted by less than 5% of gross profit as a result of aggregate changes in contract estimates related to projects that were in progress as of December 31, 2022. However, gross profit was negatively impacted by $20.9 million as a result of access delays, logistical challenges and other issues outside of Quanta’s control that increased costs associated with the large renewable transmission project in Canada referenced above. Operating results for the year ended December 31, 2022 were impacted by less than 5% of gross profit as a result of aggregate changes in contract estimates related to projects that were in progress as of the corresponding prior year end. There were no material changes in estimates on any individual project. 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 the year ended December 31, 2020. The net 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. Revenues by Category The following tables present Quanta’s revenue disaggregated by contract type and by geographic location, as determined by the job location (in thousands): Year Ended December 31, 2023 2022 2021 By contract type: Fixed price contracts $ 10,251,037 49.1 % $ 7,282,537 42.7 % $ 4,849,038 37.4 % Unit-price contracts 6,586,982 31.5 5,927,335 34.7 5,029,100 38.7 Cost-plus contracts 4,044,187 19.4 3,864,031 22.6 3,102,075 23.9 Total revenues $ 20,882,206 100.0 % $ 17,073,903 100.0 % $ 12,980,213 100.0 % Year Ended December 31, 2023 2022 2021 By primary geographic location: United States $ 17,910,892 85.8 % $ 14,390,237 84.3 % $ 11,068,493 85.3 % Canada 2,045,999 9.8 2,020,853 11.8 1,557,117 12.0 Australia 612,497 2.9 428,321 2.5 221,038 1.7 Others 312,818 1.5 234,492 1.4 133,565 1.0 Total revenues $ 20,882,206 100.0 % $ 17,073,903 100.0 % $ 12,980,213 100.0 % As described above, under fixed price contracts, as well as unit-price contracts with more than an insignificant amount of partially completed units, revenue is recognized as performance obligations are satisfied over time, with the percentage of completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation. Approximately 56.5%, 51.6% and 45.9% of Quanta’s revenues recognized during the years ended December 31, 2023, 2022 and 2021 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 and unit-price contracts with more than an insignificant amount of partially completed units, 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 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. 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, 2023 December 31, 2022 December 31, 2021 Contract assets $ 1,413,057 $ 1,080,206 $ 803,453 Contract liabilities $ 1,538,677 $ 1,141,518 $ 802,872 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, or deferred billings; and recognized unapproved change orders and contract claims. The increase in contract assets from December 31, 2022 to December 31, 2023 was primarily due to additional unapproved change orders and claims related to the large renewable transmission project in Canada referenced above, as well as on other projects on which the timing of billings lagged behind the completion of work. The increase in contract assets from December 31, 2021 to December 31, 2022 was primarily due to unapproved change orders and claims related to the same large renewable transmission project in Canada referenced above and increased working capital requirements, including the timing of billings. The increase in contract liabilities from December 31, 2022 to December 31, 2023 was primarily due to the timing of billing in relation to costs incurred on renewable projects and contract liabilities acquired as part of a 2023 acquisition. The increase in contract liabilities from December 31, 2021 to December 31, 2022 was primarily due to the timing of billing in relation to costs incurred on a renewable transmission project that resulted from project acceleration by the customer and the timing of billing in relation to costs incurred on several solar and wind projects after receipt of full notices to proceed from the customers. During the years ended December 31, 2023, 2022 and 2021, Quanta recognized revenue of approximately $1.04 billion, $695.1 million and $433.3 million related to contract liabilities outstanding as of the end of the prior year. Accounts Receivable, Allowance for Credit Losses and Concentrations of Credit Risk Quanta determines its allowance for credit losses based on an estimate of expected credit losses for financial instruments, primarily accounts receivable and contract 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 two pools for the purpose of calculating its historical credit loss experience. Quanta’s historical loss ratio and its determination of its risk pools, which are used to calculate expected credit losses, may be adjusted for changes in customer credit concentrations within its portfolio of financial assets, 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 the impact of uncertainty and challenges in the overall economy and in Quanta’s industries and markets, (e.g., inflationary pressure, supply chain and other logistical challenges and increased interest rates). 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, absent certain specific considerations, generally does not consider such amounts delinquent in its credit loss analysis unless the accounts receivable are at least 120 days outstanding. In addition, management monitors the credit quality of its receivables by, among other things, obtaining credit ratings for 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. Accounts receivable are written-off against the allowance for credit losses if they are deemed uncollectible. Activity in Quanta’s allowance for credit losses consisted of the following (in thousands): Year Ended December 31, 2023 2022 2021 Balance at beginning of year $ 15,644 $ 49,749 $ 16,546 Increase in provision for credit losses 5,927 350 34,890 Write-offs charged against the allowance net of recoveries of amounts previously written off (7,609) (34,455) (1,687) Balance at end of year $ 13,962 $ 15,644 $ 49,749 The above activity relates to the largest pool Quanta utilizes for assessing credit loss. The second pool represents approximately 14% of Quanta’s consolidated financial instruments as of December 31, 2023 and did not have any allowance for credit loss or experience any credit loss during the periods presented. Quanta’s customers generally have high credit ratings. In addition, the customers in the second pool typically pre-approve invoices and often receive project financing. Provision for credit losses is included in “Selling, general and administrative expenses” in the consolidated statements of operations. During the year ended December 31, 2022, Quanta determined that $31.7 million of receivables that were fully reserved in previous periods were uncollectible, and as such wrote off the receivables against their related allowances. The receivables were from Limetree Bay Refining, LLC, which filed for bankruptcy in July 2021, and an affiliate, customers within Quanta’s Underground Utility and Infrastructure Solutions (Underground and Infrastructure) segment. Provisions for such receivables were recognized during 2021. Quanta is subject to concentrations of credit risk related primarily to its receivable position with customers, which includes amounts related to billed and unbilled accounts receivable and contract assets for services Quanta has performed for customers. Quanta grants credit under normal payment terms, generally without collateral. One customer within the Renewable Energy Infrastructure Solutions (Renewable Energy) segment associated with the large renewable transmission project in Canada described above represented 10% of Quanta’s consolidated receivable position as of both December 31, 2023 and 2022. No customer represented 10% or more of Quanta’s consolidated revenues for the years ended December 31, 2023, 2022 or 2021. 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, 2023 and 2022 were $610.0 million and $397.6 million, which are included in “Accounts receivable.” Retainage balances with expected settlement dates beyond one year were $78.7 million and $136.2 million as of December 31, 2023 and 2022 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. These balances do not include revenues recognized for work performed under fixed-price contracts and unit-price contracts with more than an insignificant amount of partially completed units, as these amounts are recorded as “Contract assets.” As of December 31, 2023, 2022 and 2021, unbilled receivables included in “Accounts receivable” were $743.6 million, $823.9 million and $679.0 million. Quanta also recognizes unearned revenues for non-fixed price contracts when cash is received prior to recognizing revenues for the related performance obligation. Unearned revenues, which are included in “Accounts payable and accrued expenses,” were $58.6 million, $59.6 million and $51.8 million as of December 31, 2023, 2022 and 2021. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION: Quanta reports its results under three reportable segments: Electric Power Infrastructure Solutions (Electric Power), Renewable Energy and Underground and Infrastructure. Electric Power . Quanta’s Electric Power segment provides comprehensive services for the electric power and communications markets. Services include, but are not limited to, the design, procurement, new construction, upgrade and repair and maintenance services for electric power transmission and distribution infrastructure, both overhead and underground, and substation facilities, along with other engineering and technical services, including services 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 and to accommodate increased residential and commercial use of electric vehicles. In addition, this segment provides emergency restoration services, including the repair of infrastructure damaged by fire and inclement weather 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, as well as other related services. Additionally, this segment manufactures power transformers and components for the electric utility, municipal power and industrial markets. Renewable Energy. Quanta’s Renewable Energy segment provides comprehensive infrastructure solutions to customers that are involved in the renewable energy industry. Services include, but are not limited to, engineering, procurement, new construction, repowering and repair and maintenance services for renewable generation facilities, such as utility-scale wind, solar and hydropower generation facilities and battery storage facilities, and engineering and construction services for transmission and other electrical infrastructure needed to interconnect and transmit electricity from renewable energy generation and battery storage facilities. Underground and Infrastructure. Quanta’s Underground and Infrastructure segment provides comprehensive infrastructure solutions to customers involved in the transportation, distribution, storage, development and processing of natural gas, oil and other products. Services include, but are not limited to design, engineering, procurement, new construction, upgrade and repair and maintenance services for natural gas systems for gas utility customers; and pipeline protection, integrity testing, rehabilitation and replacement services. Additionally, Quanta serves the midstream and downstream industrial energy markets through catalyst replacement services, high-pressure and critical-path turnaround services, instrumentation and electrical services, piping, fabrication and storage tank services. Corporate and Non-allocated Costs include corporate facility costs; non-allocated corporate salaries, benefits and incentive compensation; 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. 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. Reportable segment information, including revenues and operating income by type of work, is gathered from each operating company. 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 allocations be made to determine segment profitability, including allocations of certain corporate shared and indirect operating costs as well as general and administrative costs. The following table sets forth segment revenues and segment operating income (loss) for the years ended December 31, 2023, 2022 and 2021. Operating margin is calculated by dividing operating income (loss) by revenues. The following table shows dollars in thousands: Year Ended December 31, 2023 2022 2021 Revenues: Electric Power $ 9,696,897 46.5 % $ 8,940,276 52.4 % $ 7,624,240 58.7 % Renewable Energy 6,170,301 29.5 % 3,778,560 22.1 % 1,825,259 14.1 % Underground and Infrastructure 5,015,008 24.0 % 4,355,067 25.5 % 3,530,714 27.2 % Consolidated revenues $ 20,882,206 100.0 % $ 17,073,903 100.0 % $ 12,980,213 100.0 % Operating income (loss) : Electric Power (1) $ 1,013,350 10.5 % $ 958,798 10.7 % $ 865,409 11.4 % Renewable Energy (2) 477,208 7.7 % 304,308 8.1 % 181,908 10.0 % Underground and Infrastructure 377,977 7.5 % 317,543 7.3 % 150,147 4.3 % Corporate and Non-Allocated Costs (3) (740,559) (3.5) % (708,591) (4.2) % (533,943) (4.1) % Consolidated operating income $ 1,127,976 5.4 % $ 872,058 5.1 % $ 663,521 5.1 % ( 1 ) Includes equity in earnings of integral unconsolidated affiliates of $41.6 million, $52.5 million and $44.1 million for the years ended December 31, 2023, 2022 and 2021, primarily related to Quanta’s equity interest in LUMA Energy, LLC (LUMA). (2) Quanta recorded $11.7 million of asset impairment charges related to a software implementation project at an acquired company, which commenced prior to Quanta’s acquisition and was discontinued in the fourth quarter of 2022. The fair value of this software was zero at December 31, 2022. (3) Includes amortization expense of $289.0 million, $354.0 million and $165.4 million and non-cash stock-based compensation of $126.8 million, $105.6 million and $88.3 million for the years ended December 31, 2023, 2022 and 2021. Depreciation Expense 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. Certain of Quanta’s fixed assets are used on an interchangeable basis across its reportable segments. The following table sets forth depreciation expense by segment for the years ended December 31, 2023, 2022, and 2021. The table shows dollars in thousands: Year Ended December 31, 2023 2022 2021 Depreciation: Electric Power $ 168,486 $ 149,151 $ 141,093 Renewable Energy 54,369 40,535 14,020 Underground and Infrastructure 77,524 83,117 83,720 Corporate and Non-Allocated Costs 24,407 17,844 16,696 Consolidated depreciation $ 324,786 $ 290,647 $ 255,529 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONS: The results of operations of acquired businesses have been included in Quanta’s consolidated financial statements since their respective acquisition dates. In January 2024, Quanta acquired two businesses located in the United States including: a business that provides specialty environmental solutions to industrial and petrochemical companies (which will be primarily included in the Underground and Infrastructure segment) and a business that specializes in testing, manufacturing and distributing safety equipment and supplies (which will be primarily included in the Electric Power and Renewable Energy segments). The consideration for these transactions consisted of approximately $379.9 million paid or payable in cash on the dates of the acquisitions and 221,700 shares of Quanta common stock issued in consideration for one of the acquired businesses, which had a fair value of $44.9 million as of the date of the acquisition. Additionally, the former owners of one of these businesses are eligible to receive a potential payment of contingent consideration to the extent the acquired business achieves certain financial and operating performance targets over a three-year period. The final amount of consideration for these acquisitions remains subject to certain post-closing adjustments, including with respect to net working capital. Quanta is in the process of performing procedures to determine the fair value of assets acquired and liabilities assumed related to these acquisitions. During the year ended December 31, 2023, Quanta acquired five businesses located in the United States including: a business that provides services related to high-voltage transmission lines, overhead and underground distribution, emergency restoration and industrial and commercial wiring and lighting (primarily included in the Electric Power segment); a business that procures parts, assembles kits for sale, manages logistics and installs solar tracking equipment for utility and development customers (primarily included in the Renewable Energy segment); a business that provides concrete construction services (primarily included in the Electric Power and Renewable Energy segments); a business specializing in power studies, maintenance testing and commissioning primarily for utility and commercial customers (included in the Electric Power segment) and a business that manufactures power transformers for the electric utility, renewable energy, municipal power and industrial markets (included in the Electric Power and Renewable Energy segments). The consideration for these transactions consisted of approximately $782.4 million paid or payable in cash (subject to certain adjustments) and 1,238,576 shares of Quanta common stock, which had a fair value of $158.9 million as of the dates of the acquisitions. In July 2022, Quanta acquired a business located in the United States that provides construction contracting services to utilities, specializing in trenching and underground pipeline and electrical conduit installation. Consideration for this acquisition included $22.3 million paid or payable in cash. Additionally, the former owners of this business are eligible to receive a potential payment of contingent consideration to the extent the acquired business achieves certain financial performance targets over a five-year period. The results of the acquired business are included in the Electric Power segment. 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. 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. Consideration for this acquisition included $2.43 billion paid in cash 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. 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. The contingent consideration payment is calculated based on a cumulative three-year performance period ending on December 31, 2024 and could also be subject to Quanta management discretion. As of December 31, 2023, the fair value of the contingent consideration liability was $139.9 million. B lattner’s results are included in the Renewable Energy 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 $328.2 million paid or payable in cash and 187,093 shares of Quanta common stock, which had an aggregate 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 primarily included in the Underground and Infrastructure segment and the results of the remaining businesses are primarily included in the Electric Power segment. Additionally, the former owners of certain acquired businesses are eligible to receive potential payments of contingent consideration to the extent the acquired businesses achieve certain financial performance targets over specified post-acquisition periods. Purchase Price Allocation Purchase price 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 purchase price allocations related to businesses acquired in 2023, and further adjustments to the purchase price allocations may occur, with possible updates primarily related to intangible asset values, property and equipment values, certain contingent liabilities, tax estimates, and the finalization of closing working capital adjustments. The following table summarizes the estimated fair value of total consideration transferred or estimated to be transferred and the fair value of assets acquired and liabilities assumed as of their respective acquisition dates, as of December 31, 2023 for acquisitions completed in the year ended December 31, 2023 and 2022 (in thousands). Year Ended December 31, 2023 2022 Consideration: Cash paid or payable $ 782,351 $ 22,328 Value of Quanta common stock issued 158,922 — Contingent consideration 6,850 2,600 Fair value of total consideration transferred or estimated to be transferred $ 948,123 $ 24,928 Cash and cash equivalents $ 123,891 $ 101 Accounts receivable 92,799 1,755 Contract assets 17,200 — Inventories 74,872 — Prepaid expenses and other current assets 5,830 72 Property and equipment 200,988 2,266 Operating lease assets 16,264 — Other assets 4,553 — Identifiable intangible assets 191,115 13,109 Accounts payable and accrued liabilities (89,227) (1,408) Contract liabilities (102,752) (3,530) Operating lease liabilities, current (3,080) — Deferred tax liabilities, net (21,489) — Operating lease liabilities, non-current (13,790) — Other long-term liabilities (2,682) — Total identifiable net assets 494,492 12,365 Goodwill 453,631 12,563 Fair value of net assets acquired $ 948,123 $ 24,928 As of December 31, 2023, approximately $394.6 million, $12.6 million, and $1.49 billion of goodwill is expected to be deductible for income tax purposes related to acquisitions completed in 2023, 2022 and 2021. The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in 2023 and 2022 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). Year Ended December 31, 2023 2022 Estimated Fair Value Weighted Average Amortization Period in Years Estimated Fair Value Weighted Average Amortization Period in Years Customer relationships $ 108,780 4.9 $ 11,565 6.0 Backlog 53,064 2.0 557 0.5 Trade names 22,297 15.0 850 15.0 Non-compete agreements 6,974 5.0 137 5.0 Total intangible assets subject to amortization $ 191,115 5.3 $ 13,109 6.4 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. 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 year ended December 31, 2023 and 2022 as of the respective acquisition dates: Year Ended December 31, 2023 2022 Range Weighted Average Rate Discount rates 14% to 19% 17% 22% Customer attrition rates 10% to 30% 19% 20% Quanta values backlog for acquired businesses as of the acquisition date based upon the contractual nature of the backlog, discounted to present value. The values of trade names 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. 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 level of inputs used for these identifiable intangible asset fair value measurements is Level 3. Contingent Consideration As described above, certain business acquisitions have contingent consideration liabilities associated with the transactions. The aggregate fair value of these outstanding contingent consideration liabilities and their classification in the accompanying consolidated balance sheets is as follows (in thousands): December 31, 2023 December 31, 2022 Accounts payable and accrued expenses $ — $ 5,000 Insurance and other non-current liabilities 157,073 143,517 Total contingent consideration liabilities $ 157,073 $ 148,517 Quanta’s aggregate contingent consideration liabilities can change due to additional business acquisitions, settlement of outstanding liabilities, accretion in present value and changes in the estimated fair value of amounts, the performance of acquired businesses in post-acquisition periods, and in certain cases, management discretion. These changes are reflected in “Change in fair value of contingent consideration liabilities” in the accompanying consolidated statements of operations. The fair value determinations of contingent consideration liabilities incorporate significant inputs not observable in the market, including revenue forecasts, operating margins, discount rates and the probability of achieving certain performance targets during designated post-acquisition periods. Accordingly, the level of inputs used for these fair value measurements is Level 3. The majority of Quanta’s outstanding contingent consideration liabilities are subject to a maximum payment amount, and the aggregate maximum payment amount of these liabilities totaled $336.8 million as of December 31, 2023. During the years ended December 31, 2023, 2022 and 2021, Quanta settled certain contingent consideration liabilities with cash payments of $5.0 million, $1.6 million and $0.3 million. Pro Forma Results of Operations The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in 2023, 2022 and 2021, have been provided for illustrative purposes only and may not 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 (in thousands). Year Ended December 31, 2023 2022 2021 Revenues $ 20,995,116 $ 17,702,495 $ 15,527,934 Net income attributable to common stock $ 738,620 $ 486,342 $ 619,304 The pro forma combined results of operations for the years ended December 31, 2023 and 2022 were prepared by adjusting the historical results of Quanta to include the historical results of the businesses acquired in 2023 as if such acquisitions had occurred January 1, 2022. The pro forma combined results of operations for the year ended December 31, 2022 and 2021 were prepared by further adjusting the historical results of Quanta to include the historical results of the business acquired in 2022 as if such acquisition had occurred January 1, 2021. The pro forma combined results of operations for the year ended December 31, 2021 were prepared by further adjusting the historical results of Quanta to include the historical results of the businesses acquired in 2021 as if such acquisitions occurred January 1, 2020. 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 and debt incurred by Quanta for the purpose of financing the acquisition of Blattner; 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; and elimination of certain transaction costs incurred by Blattner 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. Results of Operations |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS: Goodwill The changes in the carrying amount of goodwill of each of Quanta’s reportable segments were as follows (in thousands): Electric Power Renewable Energy Segment Underground and Infrastructure Segment Total Balance at December 31, 2021: (1) $ 1,387,418 $ 1,461,192 $ 680,276 $ 3,528,886 Goodwill related to acquisition completed in 2022 12,225 — — 12,225 Purchase price allocation adjustments (2) 962 64,874 580 66,416 Foreign currency translation adjustments (4,464) (7,917) (8,401) (20,782) Balance at December 31, 2022: (1) 1,396,141 1,518,149 672,455 3,586,745 Goodwill related to the acquisitions completed in 2023 189,777 263,854 — 453,631 Purchase price allocation adjustments 338 — — 338 Foreign currency translation adjustments 1,243 2,185 1,763 5,191 Balance at December 31, 2023: (1) $ 1,587,499 $ 1,784,188 $ 674,218 $ 4,045,905 (1) Included in the Underground and Infrastructure segment for the years ended December 31, 2023, 2022, and 2021 was accumulated impairment of $96.1 million, $96.1 million and $96.9 million. (2) Goodwill included in the Renewable Energy segment increased by $64.9 million during the year ended December 31, 2022 as a result of certain post-closing consideration adjustments associated with Quanta’s acquisition of Blattner. In connection with the 2023 and 2022 annual goodwill assessments, management performed a qualitative impairment assessment of Quanta’s reporting units, which indicated that the fair value of its reporting units was greater than their carrying value including goodwill. Accordingly, a quantitative goodwill impairment test was not required, and no goodwill impairment was recognized in 2023 or 2022. Other Intangible Assets Quanta’s identifiable 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, 2023 As of December 31, 2022 Remaining Weighted Average Amortization Period in Years Intangible Accumulated Intangible Intangible Accumulated Intangible Customer relationships 4.5 $ 1,852,249 $ (842,184) $ 1,010,065 $ 1,741,679 $ (600,841) $ 1,140,838 Backlog 2.1 336,149 (297,868) 38,281 282,483 (282,397) 86 Trade names 12.7 378,428 (87,572) 290,856 355,855 (63,190) 292,665 Non-compete agreements 5.0 59,464 (48,687) 10,777 52,356 (44,570) 7,786 Patented rights, developed technology, process certifications and other 1.1 32,985 (29,605) 3,380 32,969 (26,281) 6,688 Curriculum 4.6 14,794 (8,741) 6,053 13,488 (5,920) 7,568 Total intangible assets subject to amortization 6.2 2,674,069 (1,314,657) 1,359,412 2,478,830 (1,023,199) 1,455,631 Engineering license 3,000 — 3,000 3,000 — 3,000 Total intangible assets $ 2,677,069 $ (1,314,657) $ 1,362,412 $ 2,481,830 $ (1,023,199) $ 1,458,631 Amortization expense for intangible assets was $289.0 million, $354.0 million and $165.4 million for the years ended December 31, 2023, 2022 and 2021. The estimated future aggregate amortization expense of intangible assets subject to amortization as of December 31, 2023 is set forth below (in thousands): Year Ending December 31: 2024 $ 283,627 2025 268,052 2026 246,111 2027 220,349 2028 160,270 Thereafter 181,003 Total $ 1,359,412 |
Investments in Affiliates and O
Investments in Affiliates and Other Entities | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliates and Other Entities | INVESTMENTS IN AFFILIATES AND OTHER ENTITIES: Equity Investments The following table presents Quanta’s equity investments by type (in thousands): December 31, 2023 December 31, 2022 Equity method investments - integral unconsolidated affiliates $ 96,124 $ 101,251 Equity method investments - non-integral unconsolidated affiliates 28,105 55,833 Marketable equity securities (1) — — Non-marketable equity securities 53,868 54,134 Total equity investments $ 178,097 $ 211,218 (1 ) As of December 31, 2022, the fair value of Quanta’s investment in equity securities of Starry Group Holdings, Inc. (Starry) was zero, which was accounted for as an investment in marketable securities and included a loss of $91.5 million. During the year ended December 31, 2023, a plan of reorganization in Starry’s bankruptcy proceeding pursuant to Chapter 11 of the U.S. Bankruptcy Code, as amended, went into effect and, as a result, the equity securities of Starry held by Quanta were cancelled. Equity Method Investments During the three months ended December 31, 2022, Quanta entered into an agreement to sell one of its non-integral equity method investments. The transaction was subject to certain customary closing conditions that were satisfied in early 2023. As a result, a $25.9 million gain was recognized in the fourth quarter of 2022, $10.4 million of which was attributable to non-controlling interests. During the year ended December 31, 2023, Quanta received cash of $58.5 million related to the sale of this investment, $9.8 million of which was distributed to non-controlling interests. As of December 31, 2023 and 2022, Quanta had receivables of $96.4 million and $96.9 million from its integral unconsolidated affiliates and payables of $24.5 million and $9.3 million to its integral affiliates. Quanta recognizes revenues from services provided to its integral unconsolidated affiliates, primarily for services provided to LUMA at cost . Quanta recognized revenues from such services to its integral unconsolidated affiliates of $215.0 million, $154.7 million and $74.1 million during the years ended December 31, 2023, 2022 and 2021. In addition, during the years ended December 31, 2023, 2022 and 2021, Quanta recognized costs of sales of $201.3 million, $134.5 million and $116.2 million for services provided by other integral unconsolidated affiliates. Total equity in earnings from integral unconsolidated affiliates was $41.6 million, $52.5 million, and $44.1 million for the years ended December 31, 2023, 2022 and 2021. Total equity in earnings from non-integral unconsolidated affiliates was earnings of $1.3 million, $20.3 million and $2.1 million for the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023, Quanta had $18.7 million of undistributed earnings related to unconsolidated affiliates. The difference between Quanta’s carrying value and the underlying equity in the net assets of its equity investments is assigned to the assets and liabilities of the investment, giving rise to a basis difference, which was $31.4 million and $37.8 million as of December 31, 2023 and 2022. The amortization of the basis difference included in “Equity in earnings of integral unconsolidated affiliates” in the accompanying consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021, was $6.2 million, $1.9 million and $0.5 million. |
Per Share Information
Per Share Information | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 Amounts attributable to common stock: Net income attributable to common stock $ 744,689 $ 491,189 $ 485,956 Weighted average shares: Weighted average shares outstanding for basic earnings per share attributable to common stock 145,222 143,488 140,824 Effect of dilutive unvested non-participating stock-based awards 3,601 4,504 4,549 Weighted average shares outstanding for diluted earnings per share attributable to common stock 148,823 147,992 145,373 |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Obligations | DEBT OBLIGATIONS: Quanta’s long-term debt obligations consisted of the following (in thousands): December 31, 2023 2022 0.950% Senior Notes due October 2024 $ 500,000 $ 500,000 2.900% Senior Notes due October 2030 1,000,000 1,000,000 2.350% Senior Notes due January 2032 500,000 500,000 3.050% Senior Notes due October 2041 500,000 500,000 Borrowings under senior credit facility (including Term Loan) 867,137 786,910 Borrowings under commercial paper program 705,900 373,000 Lease financing transactions 102,955 83,592 Other long-term debt 6,279 9,315 Finance leases 39,577 3,542 Unamortized discount and financing costs (23,142) (26,432) Total long-term debt obligations 4,198,706 3,729,927 Less — Current maturities of long-term debt 535,202 37,495 Total long-term debt obligations, net of current maturities $ 3,663,504 $ 3,692,432 As of December 31, 2023, 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. 2024 $ 527,435 2025 $ 47,250 2026 $ 1,523,540 2027 $ 5,761 2028 $ 2,914 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. 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. The interest amounts due on Quanta’s Senior Notes on each payment date are 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 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. The fair value of Quanta’s Senior Notes was $2.15 billion as of December 31, 2023, compared to a carrying value of $2.48 billion net of unamortized bond discount, underwriting discounts and deferred financing costs of $20.5 million. The fair value of the Senior Notes is based on the quoted market prices for the same issue, and the Senior Notes are categorized as Level 1 liabilities. Senior Credit Facility The credit agreement for Quanta’s senior credit facility (as amended, the credit agreement) provides for a $750.0 million term loan facility 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. Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands): Year Ended December 31, 2023 2022 2021 Maximum amount outstanding $ 1,004,677 $ 1,684,783 $ 1,463,667 Average daily amount outstanding $ 929,201 $ 1,250,493 $ 591,114 Weighted-average interest rate 6.62 % 3.03 % 1.87 % On August 23, 2022 Quanta entered into an amendment to the credit agreement, which among other things, permits proceeds of revolving loans to be used to provide credit support for Quanta’s commercial paper program, as described further below; established Term Secured Overnight Financing Rate (Term SOFR) (as defined in the credit agreement) as the benchmark rate for the senior credit facility (including both the term loan facility and the revolving credit facility) in replacement of London Interbank Offered Rate (LIBOR) (as defined therein prior to giving effect to the amendment) as further described below, effective as of the date of the amendment; and revised certain other terms and provisions. The credit agreement contains certain covenants, including, as of the end of any fiscal quarter of Quanta, (i) a maximum Consolidated Leverage Ratio (as defined in the credit agreement) 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 (as defined in the credit agreement) of 3.0 to 1.0. As of December 31, 2023, 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. These limits include a limit on surety-backed letters of credit issued separate from the senior credit facility, which are not to exceed $300.0 million at any one time outstanding. 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. Term Loan. As of December 31, 2023, Quanta had $731.3 million outstanding under its term loan facility. The carrying amount of the term loan under Quanta’s senior credit facility approximates fair value due to its variable interest rate. The term loan requires quarterly principal payments on the first business day of each January, April, July and October in the amount of $4.7 million per quarter through 2024, $9.4 million per quarter in 2025 and $18.8 million per quarter in 2026. The aggregate remaining principal amount outstanding must be paid by 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. Beginning August 23, 2022, amounts borrowed under the term loan facility bear interest, at Quanta’s option, at a rate equal to either (a) the Term SOFR 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, (iii) the Term SOFR plus 1.00%, and (iv) 1.00% subject to applicable interest rate floors. Prior to August 23, 2022, amounts borrowed under the term loan facility bore interest, at Quanta’s option, at a rate equal to either (a) the LIBOR Rate 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 described above), whichever was more favorable to Quanta. The Base Rate equaled the highest of (i) the Federal Funds Rate (as described above) plus 0.5%, (ii) Bank of America N.A.’s prime rate and (iii) the LIBOR Rate plus 1.00%. Revolving Loans. As of December 31, 2023, Quanta had $135.8 million of outstanding revolving loans under the senior credit facility, all of which were denominated in Canadian dollars. The carrying amounts of the revolving borrowings under Quanta’s senior credit facility approximate fair value, as all revolving borrowings have a variable interest rate. As of December 31, 2023, Quanta also had $274.2 million of letters of credit issued under the senior credit facility, of which $97.1 million were denominated in U.S. dollars and $177.1 million were denominated in currencies other than the U.S. dollar, primarily Australian and Canadian dollars. Additionally, available commitments for revolving loans under the senior credit facility must be maintained in order to provide credit support for notes issued under Quanta’s commercial paper program, and therefore such notes effectively reduce the available borrowing capacity under the senior credit facility. As of December 31, 2023, $1.52 billion remained available under the senior credit facility for new revolving loans, letters of credit and support of the commercial paper program. Beginning August 23, 2022, 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 Term SOFR 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. Between October 8, 2021 and August 23, 2022, the interest rates were the same as above except that the benchmark rate utilized was the LIBOR Rate rather than the Term SOFR. 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 described above) 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%. Commercial Paper Program On August 23, 2022, Quanta entered into its commercial paper program that allows it to issue unsecured commercial paper notes. Effective October 6, 2023, Quanta increased the maximum aggregate amount of its existing unsecured commercial paper program to $1.50 billion of notes outstanding at any time. Prior to the increase, the maximum aggregate amount of the program was $1 billion. The notes are sold under customary market terms in the U.S. commercial paper market at a discount from par or at par and bear interest at rates determined at the time of issuance. The maturities of the notes may vary, but may not exceed 397 days from the date of issuance. Quanta began issuing notes under this program on September 2, 2022 and had $705.9 million of outstanding notes as of December 31, 2023, with a weighted average interest rate of 6.0%. The carrying amounts of the notes issued under Quanta’s commercial paper program approximate fair value, as all notes currently have a short maturity. Borrowings under the commercial paper program and the applicable interest rates were as follows (dollars in thousands): Year Ended December 31, 2023 2022 (1) Maximum amount outstanding $ 938,400 $ 707,300 Average daily amount outstanding $ 644,942 $ 462,359 Weighted-average interest rate 5.82 % 4.47 % (1) The amounts in this column represent activity from August 23, 2022, the date Quanta’s commercial paper program commenced, through December 31, 2022. Additional Letters of Credit As of December 31, 2023, Quanta had $433.3 million of surety-backed letters of credit issued outside of its senior credit facility, which were denominated in U.S. dollars. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | LEASES: Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. As of December 31, 2023, the majority of Quanta’s leases had remaining lease terms of less than eleven 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 and lease financing cost Classification 2023 2022 2021 Finance lease cost: Amortization of lease assets Depreciation (1) $ 4,944 $ 1,540 $ 1,097 Interest on lease liabilities Interest and other financing expenses 1,463 108 90 Lease financing transactions: (2) Depreciation Depreciation (1) 7,698 5,303 3,423 Interest Interest and other financing expenses 12,992 8,405 5,472 Operating lease cost Cost of services and Selling, general and administrative expenses 93,133 93,539 104,668 Short-term and variable lease cost (3) Cost of services and Selling, general and administrative expenses 1,106,454 953,721 716,722 Total lease and lease financing transactions cost $ 1,226,684 $ 1,062,616 $ 831,472 (1) Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying consolidated statements of operations. (2) 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 these purchase options are exercised by a third-party lessor on behalf of Quanta, the transaction is deemed to be a financing transaction for accounting purposes, which results in the recognition of an asset equal to the purchase price and a corresponding liability. (3) 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 real and personal property and facilities. Typically, the parties are employees of Quanta who are also the former owners of businesses acquired by Quanta, and the real property 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 $16.5 million, $14.7 million and $13.9 million for the years ended December 31, 2023, 2022 and 2021. The components of leases in the accompanying consolidated balance sheets were as follows (in thousands): December 31, Lease type Classification 2023 2022 Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 249,443 $ 229,691 Finance lease assets Property and equipment, net of accumulated depreciation 35,770 3,238 Lease financing transaction assets Property and equipment, net of accumulated depreciation 102,955 83,591 Total lease and lease financing assets $ 388,168 $ 316,520 Liabilities: Current: Operating Current portion of operating lease liabilities $ 77,995 $ 74,052 Finance Current maturities of long-term debt and short-term debt 7,767 1,433 Lease financing transaction liabilities Current maturities of long-term debt and short-term debt 7,345 15,034 Non-current: Operating Operating lease liabilities, net of current portion 186,996 171,512 Finance Long-term debt, net of current maturities 31,810 2,109 Lease financing transaction liabilities Long-term debt, net of current maturities 95,610 68,557 Total lease and lease financing liabilities $ 407,523 $ 332,697 Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands): As of December 31, 2023 Operating Leases Finance Leases Total 2024 $ 87,354 $ 8,869 $ 96,223 2025 70,047 8,527 78,574 2026 52,359 8,277 60,636 2027 35,844 7,735 43,579 2028 20,782 7,418 28,200 Thereafter 24,856 6,003 30,859 Total future minimum payments related to operating leases, finance leases and lease financing transactions 291,242 46,829 338,071 Less imputed interest (26,251) (7,252) (33,503) Total $ 264,991 $ 39,577 $ 304,568 Future minimum lease payments for short-term leases were $21.3 million as of December 31, 2023. As of December 31, 2023, Quanta also had minimum lease payments related to operating lease obligations of $16.6 million for leases that had not yet commenced and that are expected to commence in 2024 and have lease terms of one The weighted average remaining lease terms and discount rates were as follows: As of December 31, 2023 2022 Weighted average remaining lease term (in years): Operating leases 4.34 4.39 Finance leases 5.69 2.93 Weighted average discount rate: Operating leases 4.3 % 3.5 % Finance leases 6.3 % 3.1 % Quanta has also guaranteed the residual value under certain of its equipment operating leases and real estate finance leases, agreeing to pay any difference between the residual value and the fair market value of the underlying asset at the date of lease termination. Historically, the fair value of the assets at the time of lease termination generally has approximated or exceeded the residual value guarantees, and therefore such guarantees are not expected to result in significant payments. |
Leases | LEASES: Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. As of December 31, 2023, the majority of Quanta’s leases had remaining lease terms of less than eleven 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 and lease financing cost Classification 2023 2022 2021 Finance lease cost: Amortization of lease assets Depreciation (1) $ 4,944 $ 1,540 $ 1,097 Interest on lease liabilities Interest and other financing expenses 1,463 108 90 Lease financing transactions: (2) Depreciation Depreciation (1) 7,698 5,303 3,423 Interest Interest and other financing expenses 12,992 8,405 5,472 Operating lease cost Cost of services and Selling, general and administrative expenses 93,133 93,539 104,668 Short-term and variable lease cost (3) Cost of services and Selling, general and administrative expenses 1,106,454 953,721 716,722 Total lease and lease financing transactions cost $ 1,226,684 $ 1,062,616 $ 831,472 (1) Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying consolidated statements of operations. (2) 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 these purchase options are exercised by a third-party lessor on behalf of Quanta, the transaction is deemed to be a financing transaction for accounting purposes, which results in the recognition of an asset equal to the purchase price and a corresponding liability. (3) 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 real and personal property and facilities. Typically, the parties are employees of Quanta who are also the former owners of businesses acquired by Quanta, and the real property 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 $16.5 million, $14.7 million and $13.9 million for the years ended December 31, 2023, 2022 and 2021. The components of leases in the accompanying consolidated balance sheets were as follows (in thousands): December 31, Lease type Classification 2023 2022 Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 249,443 $ 229,691 Finance lease assets Property and equipment, net of accumulated depreciation 35,770 3,238 Lease financing transaction assets Property and equipment, net of accumulated depreciation 102,955 83,591 Total lease and lease financing assets $ 388,168 $ 316,520 Liabilities: Current: Operating Current portion of operating lease liabilities $ 77,995 $ 74,052 Finance Current maturities of long-term debt and short-term debt 7,767 1,433 Lease financing transaction liabilities Current maturities of long-term debt and short-term debt 7,345 15,034 Non-current: Operating Operating lease liabilities, net of current portion 186,996 171,512 Finance Long-term debt, net of current maturities 31,810 2,109 Lease financing transaction liabilities Long-term debt, net of current maturities 95,610 68,557 Total lease and lease financing liabilities $ 407,523 $ 332,697 Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands): As of December 31, 2023 Operating Leases Finance Leases Total 2024 $ 87,354 $ 8,869 $ 96,223 2025 70,047 8,527 78,574 2026 52,359 8,277 60,636 2027 35,844 7,735 43,579 2028 20,782 7,418 28,200 Thereafter 24,856 6,003 30,859 Total future minimum payments related to operating leases, finance leases and lease financing transactions 291,242 46,829 338,071 Less imputed interest (26,251) (7,252) (33,503) Total $ 264,991 $ 39,577 $ 304,568 Future minimum lease payments for short-term leases were $21.3 million as of December 31, 2023. As of December 31, 2023, Quanta also had minimum lease payments related to operating lease obligations of $16.6 million for leases that had not yet commenced and that are expected to commence in 2024 and have lease terms of one The weighted average remaining lease terms and discount rates were as follows: As of December 31, 2023 2022 Weighted average remaining lease term (in years): Operating leases 4.34 4.39 Finance leases 5.69 2.93 Weighted average discount rate: Operating leases 4.3 % 3.5 % Finance leases 6.3 % 3.1 % Quanta has also guaranteed the residual value under certain of its equipment operating leases and real estate finance leases, agreeing to pay any difference between the residual value and the fair market value of the underlying asset at the date of lease termination. Historically, the fair value of the assets at the time of lease termination generally has approximated or exceeded the residual value guarantees, and therefore such guarantees are not expected to result in significant payments. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES: The components of income before income taxes were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Income before income taxes: Domestic $ 823,691 $ 532,051 $ 534,302 Foreign 146,265 171,835 88,599 Total $ 969,956 $ 703,886 $ 622,901 The components of the provision for income taxes were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current: Federal $ 132,727 $ 97,673 $ 65,273 State 42,783 29,439 32,930 Foreign 39,941 23,078 6,644 Total current tax provision 215,451 150,190 104,847 Deferred: Federal 16,055 29,657 27,762 State (556) 4,225 (2,418) Foreign (11,683) 8,171 727 Total deferred tax provision (benefit) 3,816 42,053 26,071 Total provision for income taxes $ 219,267 $ 192,243 $ 130,918 Income taxes related to other income (loss) within other comprehensive income (loss) was an expense of $0.4 million, a benefit of $0.2 million and an expense of $0.4 million for the years ended December 31, 2023, 2022 and 2021. There was no tax on foreign currency translation adjustment within other comprehensive income (loss) for the years ended December 31, 2023, 2022 and 2021. 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, 2023 2022 2021 Provision at the statutory rate $ 203,691 $ 147,816 $ 130,809 Increases (decreases) resulting from: State taxes 41,920 28,320 27,204 Employee per diems, meals and entertainment 27,039 6,086 3,569 Tax contingency reserves, net 6,882 7,939 844 Foreign taxes 2,927 (638) (9,359) Company-owned life insurance (2,262) 2,917 (6,969) Taxes on certain equity method investments and non-controlling interests (9,519) (12,886) (8,825) Valuation allowance on deferred tax assets (20,177) 23,366 6,107 Stock-based compensation (35,007) (24,066) (21,271) Other 3,773 13,389 8,809 Total provision for income taxes $ 219,267 $ 192,243 $ 130,918 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, 2023 2022 Deferred income tax liabilities: Property and equipment $ (350,204) $ (286,950) Goodwill (167,275) (129,491) Leased assets (106,325) (84,870) Retainage (16,590) (28,773) Other (2,318) — Total deferred income tax liabilities (642,712) (530,084) Deferred income tax assets: Lease liabilities 103,308 84,189 Other intangible assets 100,478 73,654 Accruals and reserves 69,081 48,168 Stock and incentive compensation 62,590 55,413 Net operating loss carryforwards 62,523 56,556 Tax credits 28,802 34,413 Equity method investments and non-controlling interests 8,357 5,878 Deferred tax benefits on unrecognized tax positions 6,327 8,899 Other — 5,849 Subtotal 441,466 373,019 Valuation allowance (40,013) (58,461) Total deferred income tax assets 401,453 314,558 Total net deferred income tax liabilities $ (241,259) $ (215,526) The net deferred income tax assets and liabilities comprised the following in the accompanying consolidated balance sheets (in thousands): December 31, 2023 2022 Deferred income taxes: Assets $ 12,745 $ 12,335 Liabilities (254,004) (227,861) Total net deferred income tax liabilities $ (241,259) $ (215,526) The valuation allowances for deferred income tax assets at December 31, 2023, 2022 and 2021 were $40.0 million, $58.5 million and $41.3 million. These valuation allowances relate to state and foreign net operating loss carryforwards and foreign tax credits. 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. The net changes in the total valuation allowance for each of the years ended December 31, 2023, 2022 and 2021 were a decrease of $18.5 million, an increase of $17.2 million and a decrease of $1.9 million. The change in valuation allowance during the year ended December 31, 2023 resulted in a $20.2 million decrease in tax expense, primarily due to the release of the $22.7 million valuation allowance on Quanta’s investment in Starry, and a $2.9 million reduction due to utilization of certain foreign net operating losses. These decreases were partially offset by $5.6 million of new valuation allowances primarily placed on foreign net operating losses during the year. The total valuation allowance also increased by $1.7 million in currency translation adjustments on previously provided valuation allowances. During the year ended December 31, 2022, Quanta recognized $91.5 million of unrealized losses on its investment in Starry and recorded a valuation allowance against such unrealized losses. During the three months ended March 31, 2023, Starry filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code, as amended. On August 31, 2023, the equity securities held by Quanta were cancelled pursuant to an approved plan of reorganization in such bankruptcy proceeding. As a result, Quanta’s cumulative $91.5 million loss on its investment in Starry was realized during the year ended December 31, 2023. This realized loss can be utilized to offset gains from tax years 2020 through 2023, and can be carried forward to offset future capital gains realized in tax years 2024 through 2028. Quanta has identified sufficient sources of capital loss carry backs and forecasted capital gain income in these periods such that the full $22.7 million valuation allowance on the Starry capital loss was released during the year ended December 31, 2023 . The change in valuation allowance during the year ended December 31, 2022 resulted in a $23.3 million increase in tax expense due primarily to $22.7 million in new valuation allowances recorded on unrealized losses on Quanta’s investment in Starry as further described above and in Note 8. The total valuation allowance increased by $17.2 million from December 31, 2021 to December 31, 2022 primarily as a result of the $22.7 million valuation allowance related to Starry mentioned above, partially offset by a reduction of $4.8 million due to the removal of deferred tax assets that were no longer available to be carried forward to future years for which a valuation allowance had been provided in prior years, as well as currency translation adjustments on previously provided valuation allowances. 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. At December 31, 2023, Quanta had state and foreign net operating loss carryforwards, the tax effect of which was $63.9 million. These carryforwards will expire as follows: 2024, $0.1 million; 2025, $5.7 million; 2026, $1.1 million; 2027, $1.1 million; and $55.9 million after 2028. A valuation allowance of $30.4 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, 2023 2022 2021 Balance at beginning of year $ 41,639 $ 37,737 $ 33,219 Additions based on tax positions related to the current year 10,304 11,699 6,881 Additions for tax positions of prior years — 230 2,339 Reductions for tax positions of prior years — (407) — Reductions for audit settlements — (2,207) — Reductions resulting from a lapse of the applicable statute of limitations periods (6,807) (5,413) (4,702) Balance at end of year $ 45,136 $ 41,639 $ 37,737 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, 2023 Unrecognized tax benefits $ 45,136 Portion that, if recognized, would reduce tax expense and effective tax rate $ 42,650 Accrued interest on unrecognized tax benefits $ 4,903 Accrued penalties on unrecognized tax benefits $ 1,085 Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months $0 to $8,932 Portion that, if recognized, would reduce tax expense and effective tax rate $0 to $8,660 Quanta classifies interest and penalties within the provision for income taxes. Quanta recognized interest expense of $0.5 million, interest expense of $0.5 million and interest income of $0.8 million in the provision for income taxes for the years ended December 31, 2023, 2022 and 2021. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
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 shares of common stock 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 0.7 million shares of Quanta common stock during the year ended December 31, 2023, which had a market value of $119.1 million, 0.7 million shares of Quanta common stock during the year ended December 31, 2022, which had a market value of $82.9 million, and 0.8 million shares of Quanta common stock during the year ended December 31, 2021, which had a market value of $65.3 million. These shares and the related costs to acquire them were accounted for as adjustments to the balance of treasury stock. Stock repurchases On May 23, 2023, Quanta’s Board of Directors approved a stock repurchase program that authorizes Quanta to purchase, from time to time through June 30, 2026, up to $500 million of its outstanding common stock. The stock repurchase program became effective on July 1, 2023, upon expiration of Quanta’s previous stock repurchase program. As of December 31, 2023, $499.7 million remained available under this repurchase program. Quanta repurchased the following shares of common stock in the open market under the stock repurchase programs (in thousands): Year ended: Shares Amount December 31, 2023 2 $ 350 December 31, 2022 1,061 $ 127,747 December 31, 2021 721 $ 63,988 Quanta’s policy is to record a stock repurchase as of the trade date of the transaction; however, the payment of cash related to the repurchase is made on the settlement date of the transaction. During the years ended December 31, 2023, 2022 and 2021, cash payments related to stock repurchases were $0.4 million, $127.8 million and $66.7 million. 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. Non-controlling Interests The carrying amounts of investments held by the non-controlling interests were $11.1 million and $15.4 million at December 31, 2023 and 2022 and are included in “Non-controlling interests” in the consolidated balance sheets. The carrying amount of these investments held by Quanta was $21.2 million and $29.3 million at December 31, 2023 and 2022. See Notes 2 and 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 2023, 2022 and 2021 (in thousands, except per share amounts): Declaration Record Payment Dividend Dividends Date Date Date Per Share Declared December 5, 2023 January 2, 2024 January 12, 2024 $ 0.09 $ 13,412 August 30, 2023 October 2, 2023 October 13, 2023 $ 0.08 $ 12,430 May 23, 2023 July 3, 2023 July 14, 2023 $ 0.08 $ 11,893 March 29, 2023 April 10, 2023 April 18, 2023 $ 0.08 $ 12,100 December 13, 2022 January 3, 2023 January 13, 2023 $ 0.08 $ 11,756 August 31, 2022 October 3, 2022 October 14, 2022 $ 0.07 $ 10,322 May 27, 2022 July 1, 2022 July 15, 2022 $ 0.07 $ 10,283 March 31, 2022 April 11, 2022 April 18, 2022 $ 0.07 $ 10,459 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 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION: Stock Incentive Plans The Omnibus 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 Omnibus Plan. In May 2022, Quanta’s stockholders approved an amendment to the Omnibus Plan to increase the shares available for issuance. Subject to certain adjustments, the maximum number of shares available for issuance under the Omnibus Plan is 9.6 million, plus any shares underlying share-settling awards previously awarded pursuant to a prior equity incentive plan that are ultimately forfeited, canceled, expired or settled in cash subsequent to stockholder approval of the Omnibus Plan. As of December 31, 2023, there were approximately 2.5 million shares available for issuance under the Omnibus Plan. All awards subsequent to stockholder approval of the Omnibus Plan have been and will be made pursuant to the Omnibus 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, 2023, 2022 and 2021 is as follows (RSUs in thousands): 2023 2022 2021 RSUs Weighted Average RSUs Weighted Average RSUs Weighted Average Unvested at January 1 3,263 $78.74 3,880 $61.64 3,869 $37.57 Granted 684 $161.81 860 $113.07 1,642 $94.83 Vested (1,268) $68.06 (1,319) $50.60 (1,476) $37.03 Forfeited (131) $116.29 (158) $84.94 (155) $48.52 Unvested at December 31 2,548 $104.76 3,263 $78.74 3,880 $61.64 The approximate fair value of RSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $208.0 million, $152.5 million and $125.7 million, respectively. During the years ended December 31, 2023, 2022 and 2021, Quanta recognized $94.5 million, $84.0 million and $67.3 million of non-cash stock compensation expense related to RSUs to be settled in common stock. As of December 31, 2023, there was $148.1 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 3.25 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, 2023, 2022 and 2021 is as follows (PSUs in thousands): 2023 2022 2021 PSUs Weighted Average PSUs Weighted Average PSUs Weighted Average Grant Date Fair Value (Per Unit) Unvested at January 1 733 $65.39 931 $47.27 1,047 $37.65 Granted 177 $174.50 153 $119.74 174 $90.44 Vested (413) $35.12 (334) $40.15 (268) $38.28 Forfeited (6) $101.66 (17) $58.79 (22) $41.86 Unvested at December 31 491 $129.70 733 $65.39 931 $47.27 The Monte Carlo simulation valuation methodology applied the following key inputs: 2023 2022 2021 Valuation date price based on March 9, 2023, March 2, 2022 and March 25, 2021 closing stock prices of Quanta common stock $160.55 $110.24 $83.48 Expected volatility 35 % 39 % 36 % Risk-free interest rate 4.62 % 1.64 % 0.26 % Term in years 2.81 2.83 2.77 During the years ended December 31, 2023, 2022 and 2021, Quanta recognized $32.3 million, $21.6 million and $21.0 million of non-cash stock compensation expense related to PSUs to be settled in common stock. As of December 31, 2023, there was an estimated $28.7 million of total unrecognized compensation expense related to unearned and unvested PSUs. This amount is based on forecasted attainment of performance metrics and estimated forfeitures of unearned and unvested PSUs. 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. This cost is expected to be recognized over a weighted average period of 1.70 years. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
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 32% of Quanta’s employees as of December 31, 2023 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 2023 and 2022 relates to the plans’ fiscal year-ends in 2022 and 2021. Forms 5500 were not yet available for the plan years ending in 2023. The PPA zone status is based on information that Quanta received from the respective plans’ administrators, as well as publicly available information on the U.S. Department of Labor website, and is certified by each 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 2023 2022 2023 2022 2021 National Electrical Benefit Fund 53-0181657 Green Green No $ 47,126 $ 47,390 $ 38,195 No Varies through November 2027 Excavators Union Local 731 Pension Fund 13-1809825 Green Green No 11,411 20,733 16,202 No April 2026 Central Pension Fund of the IUOE & Participating Employers 36-6052390 Green Green No 7,396 11,989 11,237 No Varies through May 2027 Eighth District Electrical Pension Fund 84-6100393 Green Green No 6,169 5,119 1,599 No Varies through September 2026 Laborers Pension Trust Fund for Northern California 94-6277608 Green Green No 3,342 4,849 4,479 No Varies through June 2026 Operating Engineers Local 324 Pension Fund 38-1900637 Red Red Yes 3,193 2,951 2,789 No Varies through April 2026 Pipeline Industry Pension Fund 73-6146433 Green Green No 2,733 2,477 5,081 No Varies through June 2024 Construction Laborers Pension Trust Fund for Southern California 43-6159056 Green Green No 2,729 1,355 893 No June 2026 Locals 302 & 612 of the IUOE - Employers Construction Industry Retirement Fund 91-6028571 Green Green No 2,707 1,675 2,084 No Varies through May 2026 Central Laborers Pension Fund 37-6052379 Yellow Yellow Yes 2,342 739 470 No June 2024 Local 697 I.B.E.W. and Electrical Industry Pension Plan 51-6133048 Green Green No 2,227 2,509 2,229 No May 2025 Pension Trust Fund for Operating Engineers 94-6090764 Yellow Yellow No 2,176 1,898 1,755 No Varies through June 2025 IBEW Local 1249 Pension Plan 15-6035161 Green Green No 1,931 4,558 2,667 No Varies through May 2025 Operating Engineers Pension Trust 95-6032478 Yellow Yellow No 1,473 1,360 1,143 Yes Varies through April 2026 Employer - Teamsters Local Nos 175 & 505 Pension Trust Fund 55-6021850 Red Red Yes 1,027 52 151 No June 2024 Laborers National Pension Fund 75-1280827 Red Red Yes 746 667 1,049 Yes June 2026 Laborers District Council of W PA Pension Fund 25-6135576 Yellow Yellow Yes 488 110 1,375 No June 2026 All other plans - U.S. 38,033 37,723 36,804 All other plans - Canada (1) 12,515 19,245 2,794 Total contributions $ 149,764 $ 167,399 $ 132,996 (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, 2022 and 2021. Forms 5500 were not yet available for these plans for the year ended December 31, 2023. Pension Fund Plan Years in which Quanta Contributions Were Five Percent or More of Total Plan Contributions National Electrical Benefit Fund 2022 and 2021 Excavators Union Local 731 Pension Fund 2022 and 2021 Eighth District Electrical Pension Fund 2022 Pipeline Industry Pension Fund 2022 and 2021 Local 697 I.B.E.W. and Electrical Industry Pension Plan 2022 and 2021 IBEW Local 1249 Pension Plan 2022 Local Union No 9 I.B.E.W and Outside Contractors Pension Fund (1) 2022 and 2021 I.B.E.W. Local 456 Pension Plan (1) 2022 and 2021 Teamster National Pipe Line Pension Plan (1) 2022 and 2021 (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 $254.7 million, $234.3 million and $213.4 million for the years ended December 31, 2023, 2022 and 2021. 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 payroll deductions. 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 $75.9 million, $61.7 million and $50.7 million for the years ended December 31, 2023, 2022 and 2021. Deferred Compensation Plans Quanta maintains non-qualified deferred compensation plans under which eligible directors and key employees may defer their receipt of certain cash compensation and/or the settlement of certain stock-based awards. 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 $1.8 million, $1.5 million and $1.4 million during the years ended December 31, 2023, 2022 and 2021 and did not make discretionary contributions during those years. As of December 31, 2023 and 2022, the liability related to deferred cash compensation under these plans, including amounts contributed by Quanta, was $88.9 million and $67.4 million, the majority of which was included in “Insurance and other non-current liabilities” in the accompanying consolidated balance sheets. Additionally, as of December 31, 2023 and 2022, the settlement and issuance of 174,079 and 252,026 shares of common stock underlying certain stock-based awards had been deferred under these plans, and such issuances are scheduled to occur in future periods. To provide for future obligations related to deferred cash compensation under these plans, Quanta has invested in corporate-owned life insurance (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 plan participants. The COLI assets are recorded at their cash surrender value, which is considered their fair market value, and as of December 31, 2023 and 2022, the fair market values were $83.4 million and $64.0 million and were included in “Other assets, net” in the accompanying consolidated balance sheets. The level of inputs for these fair value measurements is Level 2. Changes in the fair market value of Quanta’s COLI assets and deferred compensation liabilities largely offset and are recorded in the accompanying statements of operations as follows (in thousands): Year Ended December 31, Classification Change in fair market value of 2023 2022 2021 (Loss) gain included in Selling, general and administrative expenses Deferred compensation liabilities $ (13,325) $ 13,192 $ (10,428) Other income (expense), net COLI assets $ 11,587 $ (13,757) $ 8,566 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES: Legal Proceedings Quanta is from time to time party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, property damage, breach of contract, negligence or gross negligence, environmental liabilities, wage and hour and other employment-related damages, punitive damages, consequential damages, civil penalties or other losses, or injunctive or declaratory relief. With respect to all such lawsuits, claims and proceedings, Quanta records a reserve when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In addition, Quanta discloses matters for which management believes a material loss is at least reasonably possible. 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 liquidated damages under the contracts. 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). 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 claimed that PRONATEL: breached and wrongfully terminated the contracts; wrongfully executed the advance payment bonds and the performance bonds; and was not entitled to the alleged amount of liquidated damages, and sought compensation for various damages arising from PRONATEL’s actions in the initially claimed amount of approximately $190 million. In August 2022, Redes received the decision of the arbitration tribunal, which unanimously found in favor of Redes in connection with its claims and ordered, among other things, (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) payment of lost income in connection with Redes’ future operation and maintenance of the networks; and (iv) payment of other related costs and damages to Redes as a result of the breach and improper termination of the contracts (including costs related to the execution of the bonds, costs related to the transfer of the networks and legal and expert fees). Accordingly, the arbitration tribunal awarded Redes approximately $177 million. In addition, per the terms of the arbitration decision, interest will accrue on the amount owed up to the date of payment. The decision of the arbitration tribunal is final, with limited grounds on which PRONATEL and the MTC may seek to annul the decision in Peruvian courts. In December 2022, Redes filed an enforcement proceeding with respect to each project contract to secure recovery of the arbitration award, and PRONATEL and the MTC filed an annulment proceeding with respect to each project contract. The enforcement and annulment proceedings were filed with different commercial courts in Lima, Peru. In April 2023 and August 2023, Redes received favorable rulings in each of the annulment proceedings rejecting the grounds for annulment; however, PRONATEL and the MTC are pursuing, and are expected to continue to pursue, certain remaining legal challenges to such rulings. Final decisions with respect to the enforcement proceedings are expected in 2024. Additionally, in December 2022, following the favorable arbitration ruling, Quanta received $100.5 million pursuant to coverage under an insurance policy for the improper collection by PRONATEL and the MTC of the advance payment and performance bonds, and in January 2023 Quanta received $6.7 million pursuant to coverage under an insurance policy for nonpayment by PRONATEL and the MTC of amounts owed for work completed by Redes. Quanta is continuing to pursue collection of the ICC arbitration award and any amount collected would result in repayment of an equal amount to the insurers up to the amount received from the insurers. 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. The ICSID arbitration hearing on the merits occurred in the second quarter of 2023 and a decision is currently expected in the first half of 2024. Quanta believes Redes is entitled to all amounts awarded by the ICC arbitration tribunal, and that its Dutch subsidiary is entitled to other amounts associated with the pending ICSID arbitration proceeding. Quanta and Redes intend to vigorously pursue recovery of the amounts awarded by the ICC arbitration tribunal and take additional legal actions deemed necessary to enforce the ICC arbitration decision. However, due to the inherent uncertainty involved with, among other things, the challenges to the annulment decisions, enforcement and related proceedings, the ultimate timing and conclusion with respect to collection of the amounts of the ICC arbitration award remains unknown. As a result of the contract terminations and the inherent uncertainty involved in arbitration proceedings and recovery of amounts owed, 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. Quanta also initially recorded a contract receivable of approximately $120 million related to the project during the three months ended June 30, 2019, which includes the amounts collected by PRONATEL through exercise of the advance payment bonds and performance bonds. As of December 31, 2023, the total amount of the receivable was not changed and is included in “Other assets, net” in the accompanying consolidated balance sheet. Additionally, with respect to the amounts received pursuant to coverage under the insurance policies described above, $107.2 million is included in “Insurance and other non-current liabilities” in the accompanying consolidated balance sheet as of December 31, 2023. After considering, as discussed above, that the ultimate timing and conclusion with respect to collection of the full amounts associated with the ICC arbitration award remains unknown, Quanta has not recognized a gain in the current period. To the extent amounts in excess of the current receivable are determined to be realizable, a gain would be recorded in the period such determination is made. However, if Quanta is ultimately not successful with respect to collection of the ICC arbitration award or with respect to its claims in the pending ICSID arbitration proceeding, 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. 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 for TNS were initially determined by the trial court to be approximately $9.5 million. Separately, in 2022, the court issued a ruling awarding attorneys’ fees and costs to plaintiffs in the amount of approximately $17.3 million. TNS appealed the trial court’s rulings, and in October 2023, the California Court of Appeal issued an opinion overruling significant portions of the trial court’s summary judgment rulings and remanding the case to the trial court for further proceedings. Specifically, the appellate court vacated the trial court’s summary judgment ruling as to meal and rest periods, which comprises the majority of the damages awarded, and affirmed the trial court’s ruling with respect to overtime wages. In January 2024, the appellate court decision was upheld by the California Supreme Court. Quanta intends to continue to contest its liability and the damage calculations asserted by the plaintiff class to the trial court on remand. Quanta believes the decision by the appellate court also requires the attorneys’ fees and costs claimed by plaintiffs to be reevaluated in accordance with the final disposition of the matter. Additionally, in November 2007, TNS filed cross complaints for indemnity and breach of contract against the staffing agencies, which employed many of the individuals in question. In December 2012, the trial court heard cross-motions for summary judgment filed by TNS and the staffing agencies pertaining to TNS’s demand for indemnity. The court denied TNS’s motion and granted the motions filed by the staffing agencies; however, the California Appellate Court reversed the trial court’s decision in part and instructed the trial court to reconsider its ruling. In February 2017, the court denied a new motion for summary judgment filed by the staffing companies and has since stated that the staffing companies would be liable to TNS for any damages owed to the class members that the staffing companies employed. 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 payable in connection with this matter remains the subject of pending litigation and will ultimately depend on various factors, including the outcome of further proceedings by the trial court with respect to liability, damages, attorneys’ fees and expenses, and interest, as well as the solvency of the staffing agencies. Quanta has not incurred, and does not believe, at this time, that it is probable this matter will result in a material loss and the range of reasonably possible loss is not currently estimable due to the uncertainties associated with, among other things, such further proceedings. Silverado Wildfire Matter During 2022 and 2023, two of Quanta’s subsidiaries received tenders of defense and demands for preservation of evidence from Southern California Edison Company (SCE) related to lawsuits filed from April 2021 through December 2023 against SCE and T-Mobile USA, Inc. (T-Mobile) in the Superior Court of California, County of Orange. The lawsuits generally 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. T-Mobile has filed cross-complaints against SCE alleging, among other things, that 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-complaints. Quanta’s subsidiaries intend to vigorously defend against the lawsuits, the T-Mobile cross-complaints 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, 2023, 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 for services Quanta has performed for customers. 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. 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 recent economic and financial market conditions, including in connection with the uncertainties and challenges in the overall economy, including, among other things, inflationary pressure and increased interest rates. 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. See Note 4 for additional discussion on concentrations on credit risk. Insurance As discussed in Note 2, Quanta carries various insurance policies. As of December 31, 2023 and 2022, the gross amount accrued for employer’s liability, workers’ compensation, auto liability, general liability and group health claims totaled $351.7 million and $319.6 million, of which $229.2 million and $209.8 million are included in “Insurance and other non-current liabilities,” and the remainder is included in “Accounts payables and accrued expenses.” Related insurance recoveries/receivables as of December 31, 2023 and 2022 were $4.9 million and $5.8 million, of which $0.3 million and $0.3 million are included in “Prepaid expenses and other current assets” and $4.6 million and $5.5 million are included in “Other assets, net.” Quanta renews its insurance policies on an annual basis, and therefore deductibles and levels of insurance coverage may change in future periods. In addition, insurers may cancel Quanta’s coverage or determine to exclude certain items from coverage, including wildfires, or Quanta may elect not to obtain certain types or incremental levels of insurance based on the potential benefits considered relative to the cost of such insurance, or coverage may not be available at reasonable and competitive rates. Letters of Credit Certain of Quanta’s vendors require letters of credit to ensure reimbursement for amounts they are disbursing on Quanta’s behalf, such as to beneficiaries under its insurance programs. In addition, from time to time, certain customers require Quanta to post letters of credit to ensure payment of subcontractors and vendors and guarantee performance under contracts. Such letters of credit are generally issued by a bank or similar financial institution, typically pursuant to Quanta’s senior credit facility. Each letter of credit commits the issuer to pay specified amounts to the holder of the letter of credit if the holder claims that Quanta has failed to perform specified actions. If this were to occur, Quanta would be required to reimburse the issuer of the letter of credit. Depending on the circumstances of such a reimbursement, Quanta may also be required to record a charge to earnings for the reimbursement. See Note 10 for additional information regarding Quanta’s letters of credit outstanding. Quanta is not aware of any claims currently asserted or threatened under any of these letters of credit that are material, individually or in the aggregate. However, to the extent payment is required for any such claims, the amount paid could be material and could adversely affect Quanta’s consolidated business, financial condition, results of operations and cash flows. Bonds and Parent Guarantees Many customers, particularly in connection with new construction, require Quanta to post performance and payment bonds. These bonds provide a guarantee that Quanta will perform under the terms of a contract and pay its subcontractors and vendors. In certain circumstances, the customer may demand that the surety make payments or provide services under the bond, and Quanta must reimburse the surety for any expenses or outlays it incurs. Quanta may also be required to post letters of credit in favor of the sureties, which would reduce the borrowing availability under its senior credit facility. Quanta has not been required to make any material reimbursements to its sureties for bond-related costs except as described in Legal Proceedings - Peru Project Dispute above. However, to the extent further reimbursements are required, the amounts could be material and could adversely affect Quanta’s consolidated business, financial condition, results of operations and cash flows. As of December 31, 2023, Quanta is not aware of any outstanding material obligations for payments related to bond obligations. Performance bonds expire at various times ranging from mechanical completion of a project to a period extending beyond contract completion in certain circumstances, and therefore a determination of maximum potential amounts outstanding requires certain estimates and assumptions. Such amounts can also fluctuate from period to period based upon the mix and level of Quanta’s bonded operating activity. As of December 31, 2023, the estimated total amount of the outstanding performance bonds was estimated to be approximately $7.7 billion . Quanta’s estimated maximum exposure related to the value of the performance bonds outstanding is lowered on each bonded project as the cost to complete is reduced, and each commitment under a performance bond generally extinguishes concurrently with the expiration of its related contractual obligation. The estimated cost to complete these bonded projects was approximately $2.7 billion as of December 31, 2023. Additionally, from time to time, Quanta guarantees certain obligations and liabilities of its subsidiaries that may arise in connection with, among other things, contracts with customers, equipment lease obligations, joint venture arrangements and contractor licenses. These guarantees may cover all of the subsidiary’s unperformed, undischarged and unreleased obligations and liabilities under or in connection with the relevant agreement. For example, with respect to customer contracts, a guarantee may cover a variety of obligations and liabilities arising during the ordinary course of the subsidiary’s business or operations, including, among other things, warranty and breach of contract claims, third party and environmental liabilities arising from the subsidiary’s work and for which it is responsible, liquidated damages, or indemnity claims. Quanta is not aware of any claims under any guarantees that are material. To the extent a subsidiary incurs a material obligation or liability and Quanta has guaranteed the performance or payment of such obligation or liability, the recovery by a customer or other counterparty or a third party will not be limited to the assets of the subsidiary. As a result, responsibility under the guarantee could exceed the amount recoverable from the subsidiary alone and could materially and adversely affect Quanta’s consolidated business, financial condition, results of operations and cash flows. 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. From time to time, Quanta is a party to grievance and arbitration actions based on claims arising out of the collective bargaining 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. 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. In addition, Quanta may also be subject to liabilities as a result of its participation in, or withdrawal from, multiemployer defined benefit pension plans. Quanta may be required to make additional contributions to its multiemployer pension plans if they become underfunded, and these additional contributions will be determined based on Quanta’s union employee payrolls. Certain plans to which Quanta contributes or may contribute in the future may adopt measures to improve their funded status through a funding improvement or rehabilitation plan, as applicable, which may require additional contributions from employers (e.g., a surcharge on benefit contributions) and/or modifications to retiree benefits. The amount, 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. Quanta may also be subject to additional liabilities imposed by law if it or another participating employer withdraws from a multiemployer defined benefit pension plan, a plan is terminated or a plan experiences a mass withdrawal. These liabilities may include an allocable share of the unfunded vested benefits in the plan for all plan participants, not only the benefits payable to a contributing employer’s own retirees. As a result, participating employers may bear a higher proportion of liability for unfunded vested benefits if other participating employers cease to contribute or withdraw, with the reallocation of liability being more acute in cases when a withdrawn employer is insolvent or otherwise fails to pay its withdrawal liability. Quanta is not aware of any material withdrawal liabilities that have been incurred or asserted and that remain outstanding as a result of a withdrawal by Quanta from a multiemployer defined benefit pension plan. However, Quanta’s future contribution obligations and potential withdrawal liability exposure could vary based on the investment and actuarial performance of the multiemployer pension plans to which it contributes and other factors, which could be negatively impacted as a result of recent unfavorable and uncertain economic and financial market conditions. Quanta has been subject to significant withdrawal liabilities in the past, and to the extent Quanta is subject to material withdrawal liabilities in the future, such liability could adversely affect its business, financial condition, results of operations and cash flows. Indemnities Quanta generally indemnifies its customers for the services it provides under its contracts and other specified liabilities, which may subject Quanta to indemnity claims and liabilities and related litigation. Quanta is not aware of any indemnity claims in connection with these obligations that are material, except as described in Legal Proceedings - Silverado Wildfire Matter above. Additionally, in the normal course of Quanta’s acquisition transactions, Quanta has granted indemnification rights to various parties against certain potential |
Detail of Certain Accounts
Detail of Certain Accounts | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Detail of Certain Accounts | DETAIL OF CERTAIN ACCOUNTS: Cash and Cash Equivalents As of December 31, 2023 and 2022, cash equivalents were $610.8 million and $260.1 million and consisted primarily of money market investments and money market mutual funds. 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 consolidated or proportionately consolidated 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, 2023 2022 Cash and cash equivalents held by domestic joint ventures $ 41,427 $ 14,291 Cash and cash equivalents held by foreign joint ventures 10,968 6,277 Total cash and cash equivalents held by joint ventures 52,395 20,568 Cash and cash equivalents held by captive insurance company 19,088 35,085 Cash and cash equivalents not held by joint ventures or captive insurance company 1,218,765 372,852 Total cash and cash equivalents $ 1,290,248 $ 428,505 Property and Equipment Property and equipment consisted of the following (in thousands): Estimated Useful December 31, Lives in Years 2023 2022 Land N/A $ 102,839 $ 90,715 Buildings and leasehold improvements 5-30 456,004 396,003 Operating machinery, equipment and vehicles 1-25 3,069,882 2,726,546 Office equipment, furniture and fixtures and information technology systems 3-10 290,687 282,282 Construction work in progress N/A 73,018 84,446 Finance lease assets and lease financing transactions 5-20 165,923 101,385 Property and equipment, gross 4,158,353 3,681,377 Less — Accumulated depreciation and amortization (1,821,410) (1,650,913) Property and equipment, net of accumulated depreciation $ 2,336,943 $ 2,030,464 Depreciation expense related to property and equipment is recognized on a straight-line basis over the estimated useful lives of the assets and was $324.8 million, $290.6 million and $255.5 million for the years ended December 31, 2023, 2022 and 2021. In addition, Quanta held property and equipment, net of $245.7 million and $298.0 million in foreign countries, primarily Canada, as of December 31, 2023 and 2022. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following (in thousands): December 31, 2023 2022 Accounts payable, trade $ 2,027,588 $ 1,302,086 Accrued compensation and related expenses 526,221 469,048 Other accrued expenses 507,433 381,995 Accounts payable and accrued expenses $ 3,061,242 $ 2,153,129 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 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, 2023 2022 2021 2020 Cash and cash equivalents $ 1,290,248 $ 428,505 $ 229,097 $ 184,620 Restricted cash included in “Prepaid expenses and other current assets” (1) 3,652 3,759 1,836 1,275 Restricted cash included in “Other assets, net” (1) 1,141 950 954 913 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 1,295,041 $ 433,214 $ 231,887 $ 186,808 (1) Restricted cash includes any cash that is legally restricted as to withdrawal or usage. Supplemental cash flow information related to leases is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ (95,900) $ (95,175) $ (104,434) Operating cash flows used by finance leases $ (1,463) $ (108) $ (90) Financing cash flows used by finance leases $ (2,511) $ (1,457) $ (1,001) Lease assets obtained in exchange for lease liabilities: Operating leases $ 100,594 $ 77,826 $ 73,713 Finance leases $ 37,299 $ 2,331 $ 1,044 Lease financing transaction assets obtained in exchange for lease financing transaction liabilities $ 26,969 $ 35,144 $ 11,713 Additional supplemental cash flow information is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cash (paid) received during the period for: Interest paid $ (175,782) $ (106,052) $ (52,737) Income taxes paid $ (248,527) $ (111,569) $ (125,328) Income tax refunds $ 6,483 $ 8,281 $ 13,257 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) Attributable to Parent | $ 744,689 | $ 491,189 | $ 485,956 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 accounting policies. 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; fair value assumptions in analyzing equity and other investment impairments; purchase price consideration and allocations; acquisition-related contingent consideration liabilities; contingent liabilities associated with, among other things, legal proceedings and claims, parent guarantees and indemnity obligations; estimated insurance claims and recoveries; stock-based compensation; classification of operating company revenues by type of work for segment reporting purposes; provision for income taxes; and uncertain tax positions. |
Cash and Cash Equivalents | 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. Quanta’s cash equivalents are categorized as Level 1 assets, as all values are based on unadjusted quoted prices for identical assets in an active market. |
Inventories | Inventories consist primarily of parts and supplies held for use in the ordinary course of business, which are valued 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. 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 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 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 its historical acquisitions of businesses. 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. Goodwill is tested for impairment annually in the fourth quarter of the fiscal year, or more frequently if events or circumstances arise which indicate that the fair value of a reporting unit with goodwill is below its carrying amount. Quanta assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Qualitative factors assessed for each reporting unit 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. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recorded to “Asset impairment charges” in the consolidated statements of operations. 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). 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. 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 historical and projected results. 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. Quanta’s identifiable intangible assets include customer relationships; backlog; trade names; non-compete agreements; curriculum; patented rights, developed technology, process certifications and other, all of which are subject to amortization, as well as an engineering license, which is not subject to amortization. Definite-lived intangible assets are amortized 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. Quanta evaluates identifiable intangible assets with the associated long-lived asset group for impairment whenever impairment indicators are present. If the carrying amount of an identifiable intangible asset exceeds its fair value, an impairment loss is recorded to “Asset impairment charges” in the consolidated statements of operations. 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. |
Leases | Leases with terms longer than 12 months are recorded on the consolidated balance sheets as lease assets and lease liabilities. If at inception of a contract a lease is identified, Quanta recognizes a lease asset and corresponding liability based on the present value of the future minimum lease payments over the lease term as of the commencement date. Lease assets also include any initial direct costs incurred less any lease incentives received. 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; 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. Lease expense for leases with an initial term of 12 months or less is recognized on a straight-line basis over the lease term. The terms of Quanta’s lease arrangements vary, and certain leases include one or more of the following: a renewal option, 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. Additionally, certain of Quanta’s real estate and equipment arrangements contain both lease and non-lease components (e.g., maintenance services). Quanta made a policy election that allows an entity to not separate lease components from their associated non-lease components under arrangements with both components. Accordingly, Quanta accounts for both lease and non-lease components of such arrangements under the lease accounting guidance. Determinations with respect to lease term, 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, 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. 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. In cases where Quanta determines that it is not the primary beneficiary but 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. See Note 8 for additional information on Quanta’s investments and Note 16 for additional information on joint venture liabilities. Equity Method Investments Investments in affiliated entities in which Quanta does not have a controlling financial interest, but over which Quanta has the ability to exercise 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. Under the equity method of accounting, investments are stated initially at cost and are adjusted for subsequent additional investments and Quanta’s proportionate share of profit or loss and distributions. Certain of Quanta’s equity method investments are equity interests in private equity funds. These underlying private equity funds are carried at fair value. Quanta’s profit or loss is determined by its share of the change in fair value. Quanta’s equity method investments are reported in “Other assets, net” in the accompanying consolidated balance sheets. Quanta’s share of net income or losses of these investments is reported as “Equity in earnings of integral unconsolidated affiliates” within operating income when the investee is integral to the operations of Quanta, and is reported as “Other income (expense), net” when the investee is not considered integral to the business. Additionally, Quanta utilizes the cumulative earnings approach to determine whether distributions received from equity method investees are returns on investment and classified as operating cash inflows or returns of investment and reported as investing cash flows. Quanta recognizes impairments on equity method investments if there are sufficient indicators that the fair value of the investment is less than its carrying value and considered other-than-temporary. Any impairment losses related to integral unconsolidated affiliates are included in “Equity in earnings of integral unconsolidated affiliates,” while any impairments related to non-integral unconsolidated affiliates are included in “Other income (expense), net” in the accompanying consolidated statement of operations. Marketable and Non-Marketable Equity Securities Investments in entities over which Quanta does not have the ability to exercise significant influence are either considered marketable securities or non-marketable equity securities. The carrying value of any marketable and non-marketable equity securities is reported in “Other assets, net” in the accompanying consolidated balance sheets. Marketable equity securities are equity securities with a readily determinable fair value (RDFV) that are measured and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded in “Other income (expense), net” in the accompanying consolidated statements of operations. Since the RDFV of marketable equity securities is determined utilizing quoted market prices, the level of input used for these fair value measurements is the highest level (Level 1). Non-marketable equity securities are equity securities without a RDFV that are measured and recorded using a measurement alternative that measures the securities 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. Non-marketable equity securities are measured on a nonrecurring basis and recorded at fair value only if an impairment or observable price adjustment is recognized in the reporting period. Quanta recognizes impairments on non-marketable equity securities if there are sufficient indicators that the fair value of the investment is less than its carrying value. Changes in fair value and any impairments of non-marketable equity securities are reported in “Other income (expense), 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 Quanta’s 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 |
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. |
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. 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 insures all claims up to the amount of the applicable deductible of its third-party insurance programs, as well as with respect to certain other amounts. In connection with Quanta’s casualty insurance programs, Quanta is required to issue letters of credit to secure its obligations. Quanta also maintains employee health care benefit plans for most employees not subject to collective bargaining agreements. |
Stock-Based Compensation | Restricted Stock Units to be Settled in Stock Quanta recognizes compensation expense for restricted stock units (RSUs) to be settled in common stock based on the grant date fair value of the awards, which is the number of RSUs granted multiplied by the closing price of Quanta’s common stock on the date of grant, net of estimated forfeitures. The resulting compensation expense for time-based RSU awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. The non-cash stock compensation expense related to RSUs to be settled in common stock is included in “Selling, general and administrative expenses.” 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 Payments made by Quanta to satisfy employee tax withholding obligations associated with stock-based compensation are classified as financing cash flows. Performance Stock Units to be Settled in Stock Quanta recognizes compensation expense for performance stock units (PSUs) to be settled in common stock based on the fair value of the awards, net of estimated forfeitures. The resulting compensation expense for PSU awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. Non-cash stock compensation expense related to PSUs to be settled in common stock is included in “Selling, general and administrative expenses.” PSUs provide for the issuance of shares of common stock upon vesting, which occurs following a three-year performance period based on achievement of 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 or a broad equity market index. 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. 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 that ultimately vests; however, payment of such amounts is not made until the PSUs vest, such that the dividend equivalent payments are subject to forfeiture until vesting of the applicable PSUs. The grant date fair value of the PSUs is determined as follows: (i) for the portion of the awards based on company financial and operational 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, by multiplying the number of units granted by a stock price estimated by utilizing a Monte Carlo simulation valuation methodology. Quanta recognizes compensation expense for PSUs, net of estimated forfeitures, 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 grant date fair value of the total number of shares of common stock that Quanta anticipates will be issued based on such achievement for the completed portion of the three-year period Payments made by Quanta to satisfy employee tax withholding obligations associated with stock-based compensation are classified as financing cash flows. |
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 (expense), net” in the accompanying consolidated statements of operations. |
Fair Value Measurements | Quanta categorizes assets and liabilities, measured at fair value, into one of three different levels depending on the observability of the inputs employed in the measurement. Level 1 inputs are quoted prices for identical instruments in active markets. Level 2 inputs are quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable. Level 3 inputs are model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. |
New Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements Not Yet Adopted In June 2022, the FASB issued an update that clarifies the guidance in FASB ASC 820 (Fair Value Measurement) for equity securities subject to contractual sale restrictions. The update prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. This update is effective for interim and annual periods beginning after December 15, 2023. This guidance will increase the fair market value of the consideration paid in equity securities in a business combination, and therefore it may increase the amount allocated to goodwill. Quanta adopted this update effective January 1, 2024, and it did not have a material impact on Quanta’s consolidated financial statements. In November 2023, the FASB issued an update that, among other things, requires public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, provide an amount for other segment items by reportable segment and provide all segment disclosures required on an annual basis in interim periods. Additionally, the update requires entities to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measures(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and retrospective application is required. Quanta is currently assessing the effect of this update. In December 2023, the FASB issued an update that expands disclosures for tax rate reconciliation tables, primarily by requiring disaggregation of income taxes paid by jurisdiction, as well as specific categories and greater disaggregation within the rate reconciliation. This update is effective for fiscal years beginning after December 15, 2024 and interim periods within fiscal years beginning after December 15, 2025. Early adoption and retrospective application are permitted. Quanta is currently assessing the effect of this update. |
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 are generally 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. As of December 31, 2023 and 2022, the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations was approximately $13.89 billion and $8.80 billion, with 66.9% and 72.1% 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 VIEs, 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 of 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. There were no significant capitalized costs during the years ended December 31, 2023, 2022 and 2021. Quanta provides limited warranties to customers for work performed under its contracts that typically extend for a limited duration following substantial completion of its work on a project. Such warranties are not sold separately and do not provide customers with a service other than the assurance of compliance with agreed-upon specifications. Accordingly, these types of warranties are not considered to be separate performance obligations, but any costs incurred by Quanta in connection with these warranties are included in contract costs. During the years ended December 31, 2023, 2022 and 2021, Quanta has not been subject to a significant number of material warranty claims in connection with its services. Contract Estimates and Changes in Estimates Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors, including unforeseen or changed circumstances not included in Quanta’s cost estimates or covered by its contracts. Some of the factors that can result in positive changes in estimates on projects include successful execution through project risks, reduction of estimated project costs or increases of estimated revenues. Some of the factors that can result in negative changes in estimates include concealed or unknown site conditions; changes to or disputes with customers regarding the scope of services; changes in estimates related to the length of time to complete a performance obligation; changes or delays with respect to permitting and regulatory requirements and materials; 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; and performance and quality issues causing delay (including payment of liquidated damages) or requiring rework or replacement. 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. Additionally, 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 reasonably 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 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 determines its allowance for credit losses based on an estimate of expected credit losses for financial instruments, primarily accounts receivable and contract 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 two pools for the purpose of calculating its historical credit loss experience. Quanta’s historical loss ratio and its determination of its risk pools, which are used to calculate expected credit losses, may be adjusted for changes in customer credit concentrations within its portfolio of financial assets, 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 the impact of uncertainty and challenges in the overall economy and in Quanta’s industries and markets, (e.g., inflationary pressure, supply chain and other logistical challenges and increased interest rates). 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, absent certain specific considerations, generally does not consider such amounts delinquent in its credit loss analysis unless the accounts receivable are at least 120 days outstanding. In addition, management monitors the credit quality of its receivables by, among other things, obtaining credit ratings for 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. Accounts receivable are written-off against the allowance for credit losses if they are deemed uncollectible. 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. These balances do not include revenues recognized for work performed under fixed-price contracts and unit-price contracts with more than an insignificant amount of partially completed units, as these amounts are recorded as “Contract assets.” As of December 31, 2023, 2022 and 2021, unbilled receivables included in “Accounts receivable” were $743.6 million, $823.9 million and $679.0 million. Quanta also recognizes unearned revenues for non-fixed price contracts when cash is received prior to recognizing revenues for the related performance obligation. Unearned revenues, which are included in “Accounts payable and accrued expenses,” were $58.6 million, $59.6 million and $51.8 million as of December 31, 2023, 2022 and 2021. |
Segment Information | SEGMENT INFORMATION: Quanta reports its results under three reportable segments: Electric Power Infrastructure Solutions (Electric Power), Renewable Energy and Underground and Infrastructure. Electric Power . Quanta’s Electric Power segment provides comprehensive services for the electric power and communications markets. Services include, but are not limited to, the design, procurement, new construction, upgrade and repair and maintenance services for electric power transmission and distribution infrastructure, both overhead and underground, and substation facilities, along with other engineering and technical services, including services 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 and to accommodate increased residential and commercial use of electric vehicles. In addition, this segment provides emergency restoration services, including the repair of infrastructure damaged by fire and inclement weather 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, as well as other related services. Additionally, this segment manufactures power transformers and components for the electric utility, municipal power and industrial markets. Renewable Energy. Quanta’s Renewable Energy segment provides comprehensive infrastructure solutions to customers that are involved in the renewable energy industry. Services include, but are not limited to, engineering, procurement, new construction, repowering and repair and maintenance services for renewable generation facilities, such as utility-scale wind, solar and hydropower generation facilities and battery storage facilities, and engineering and construction services for transmission and other electrical infrastructure needed to interconnect and transmit electricity from renewable energy generation and battery storage facilities. Underground and Infrastructure. Quanta’s Underground and Infrastructure segment provides comprehensive infrastructure solutions to customers involved in the transportation, distribution, storage, development and processing of natural gas, oil and other products. Services include, but are not limited to design, engineering, procurement, new construction, upgrade and repair and maintenance services for natural gas systems for gas utility customers; and pipeline protection, integrity testing, rehabilitation and replacement services. Additionally, Quanta serves the midstream and downstream industrial energy markets through catalyst replacement services, high-pressure and critical-path turnaround services, instrumentation and electrical services, piping, fabrication and storage tank services. Corporate and Non-allocated Costs include corporate facility costs; non-allocated corporate salaries, benefits and incentive compensation; 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. 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. Reportable segment information, including revenues and operating income by type of work, is gathered from each operating company. 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 allocations be made to determine segment profitability, including allocations of certain corporate shared and indirect operating costs as well as general and administrative costs. The following table sets forth segment revenues and segment operating income (loss) for the years ended December 31, 2023, 2022 and 2021. Operating margin is calculated by dividing operating income (loss) by revenues. The following table shows dollars in thousands: Year Ended December 31, 2023 2022 2021 Revenues: Electric Power $ 9,696,897 46.5 % $ 8,940,276 52.4 % $ 7,624,240 58.7 % Renewable Energy 6,170,301 29.5 % 3,778,560 22.1 % 1,825,259 14.1 % Underground and Infrastructure 5,015,008 24.0 % 4,355,067 25.5 % 3,530,714 27.2 % Consolidated revenues $ 20,882,206 100.0 % $ 17,073,903 100.0 % $ 12,980,213 100.0 % Operating income (loss) : Electric Power (1) $ 1,013,350 10.5 % $ 958,798 10.7 % $ 865,409 11.4 % Renewable Energy (2) 477,208 7.7 % 304,308 8.1 % 181,908 10.0 % Underground and Infrastructure 377,977 7.5 % 317,543 7.3 % 150,147 4.3 % Corporate and Non-Allocated Costs (3) (740,559) (3.5) % (708,591) (4.2) % (533,943) (4.1) % Consolidated operating income $ 1,127,976 5.4 % $ 872,058 5.1 % $ 663,521 5.1 % ( 1 ) Includes equity in earnings of integral unconsolidated affiliates of $41.6 million, $52.5 million and $44.1 million for the years ended December 31, 2023, 2022 and 2021, primarily related to Quanta’s equity interest in LUMA Energy, LLC (LUMA). (2) Quanta recorded $11.7 million of asset impairment charges related to a software implementation project at an acquired company, which commenced prior to Quanta’s acquisition and was discontinued in the fourth quarter of 2022. The fair value of this software was zero at December 31, 2022. (3) Includes amortization expense of $289.0 million, $354.0 million and $165.4 million and non-cash stock-based compensation of $126.8 million, $105.6 million and $88.3 million for the years ended December 31, 2023, 2022 and 2021. Depreciation Expense 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. Certain of Quanta’s fixed assets are used on an interchangeable basis across its reportable segments. The following table sets forth depreciation expense by segment for the years ended December 31, 2023, 2022, and 2021. The table shows dollars in thousands: Year Ended December 31, 2023 2022 2021 Depreciation: Electric Power $ 168,486 $ 149,151 $ 141,093 Renewable Energy 54,369 40,535 14,020 Underground and Infrastructure 77,524 83,117 83,720 Corporate and Non-Allocated Costs 24,407 17,844 16,696 Consolidated depreciation $ 324,786 $ 290,647 $ 255,529 |
Acquisitions | Purchase price 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 |
Equity | General Treasury stock is recorded at cost. Under Delaware law, treasury stock is not counted for quorum purposes or entitled to vote. |
Revenue Recognition and Relat_2
Revenue Recognition and Related Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disaggregated by Geographic Location and Contract Type | The following tables present Quanta’s revenue disaggregated by contract type and by geographic location, as determined by the job location (in thousands): Year Ended December 31, 2023 2022 2021 By contract type: Fixed price contracts $ 10,251,037 49.1 % $ 7,282,537 42.7 % $ 4,849,038 37.4 % Unit-price contracts 6,586,982 31.5 5,927,335 34.7 5,029,100 38.7 Cost-plus contracts 4,044,187 19.4 3,864,031 22.6 3,102,075 23.9 Total revenues $ 20,882,206 100.0 % $ 17,073,903 100.0 % $ 12,980,213 100.0 % Year Ended December 31, 2023 2022 2021 By primary geographic location: United States $ 17,910,892 85.8 % $ 14,390,237 84.3 % $ 11,068,493 85.3 % Canada 2,045,999 9.8 2,020,853 11.8 1,557,117 12.0 Australia 612,497 2.9 428,321 2.5 221,038 1.7 Others 312,818 1.5 234,492 1.4 133,565 1.0 Total revenues $ 20,882,206 100.0 % $ 17,073,903 100.0 % $ 12,980,213 100.0 % |
Contract Assets and Liabilities | Contract assets and liabilities consisted of the following (in thousands): December 31, 2023 December 31, 2022 December 31, 2021 Contract assets $ 1,413,057 $ 1,080,206 $ 803,453 Contract liabilities $ 1,538,677 $ 1,141,518 $ 802,872 |
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, 2023 2022 2021 Balance at beginning of year $ 15,644 $ 49,749 $ 16,546 Increase in provision for credit losses 5,927 350 34,890 Write-offs charged against the allowance net of recoveries of amounts previously written off (7,609) (34,455) (1,687) Balance at end of year $ 13,962 $ 15,644 $ 49,749 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summarized Financial Information | The following table shows dollars in thousands: Year Ended December 31, 2023 2022 2021 Revenues: Electric Power $ 9,696,897 46.5 % $ 8,940,276 52.4 % $ 7,624,240 58.7 % Renewable Energy 6,170,301 29.5 % 3,778,560 22.1 % 1,825,259 14.1 % Underground and Infrastructure 5,015,008 24.0 % 4,355,067 25.5 % 3,530,714 27.2 % Consolidated revenues $ 20,882,206 100.0 % $ 17,073,903 100.0 % $ 12,980,213 100.0 % Operating income (loss) : Electric Power (1) $ 1,013,350 10.5 % $ 958,798 10.7 % $ 865,409 11.4 % Renewable Energy (2) 477,208 7.7 % 304,308 8.1 % 181,908 10.0 % Underground and Infrastructure 377,977 7.5 % 317,543 7.3 % 150,147 4.3 % Corporate and Non-Allocated Costs (3) (740,559) (3.5) % (708,591) (4.2) % (533,943) (4.1) % Consolidated operating income $ 1,127,976 5.4 % $ 872,058 5.1 % $ 663,521 5.1 % ( 1 ) Includes equity in earnings of integral unconsolidated affiliates of $41.6 million, $52.5 million and $44.1 million for the years ended December 31, 2023, 2022 and 2021, primarily related to Quanta’s equity interest in LUMA Energy, LLC (LUMA). (2) Quanta recorded $11.7 million of asset impairment charges related to a software implementation project at an acquired company, which commenced prior to Quanta’s acquisition and was discontinued in the fourth quarter of 2022. The fair value of this software was zero at December 31, 2022. (3) Includes amortization expense of $289.0 million, $354.0 million and $165.4 million and non-cash stock-based compensation of $126.8 million, $105.6 million and $88.3 million for the years ended December 31, 2023, 2022 and 2021. Year Ended December 31, 2023 2022 2021 Depreciation: Electric Power $ 168,486 $ 149,151 $ 141,093 Renewable Energy 54,369 40,535 14,020 Underground and Infrastructure 77,524 83,117 83,720 Corporate and Non-Allocated Costs 24,407 17,844 16,696 Consolidated depreciation $ 324,786 $ 290,647 $ 255,529 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Aggregate Consideration Paid or Payable and Allocation of Net Assets | The following table summarizes the estimated fair value of total consideration transferred or estimated to be transferred and the fair value of assets acquired and liabilities assumed as of their respective acquisition dates, as of December 31, 2023 for acquisitions completed in the year ended December 31, 2023 and 2022 (in thousands). Year Ended December 31, 2023 2022 Consideration: Cash paid or payable $ 782,351 $ 22,328 Value of Quanta common stock issued 158,922 — Contingent consideration 6,850 2,600 Fair value of total consideration transferred or estimated to be transferred $ 948,123 $ 24,928 Cash and cash equivalents $ 123,891 $ 101 Accounts receivable 92,799 1,755 Contract assets 17,200 — Inventories 74,872 — Prepaid expenses and other current assets 5,830 72 Property and equipment 200,988 2,266 Operating lease assets 16,264 — Other assets 4,553 — Identifiable intangible assets 191,115 13,109 Accounts payable and accrued liabilities (89,227) (1,408) Contract liabilities (102,752) (3,530) Operating lease liabilities, current (3,080) — Deferred tax liabilities, net (21,489) — Operating lease liabilities, non-current (13,790) — Other long-term liabilities (2,682) — Total identifiable net assets 494,492 12,365 Goodwill 453,631 12,563 Fair value of net assets acquired $ 948,123 $ 24,928 |
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 2023 and 2022 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). Year Ended December 31, 2023 2022 Estimated Fair Value Weighted Average Amortization Period in Years Estimated Fair Value Weighted Average Amortization Period in Years Customer relationships $ 108,780 4.9 $ 11,565 6.0 Backlog 53,064 2.0 557 0.5 Trade names 22,297 15.0 850 15.0 Non-compete agreements 6,974 5.0 137 5.0 Total intangible assets subject to amortization $ 191,115 5.3 $ 13,109 6.4 |
Significant Estimates Used by Management in Determining Fair Values of Intangible Assets | 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 year ended December 31, 2023 and 2022 as of the respective acquisition dates: Year Ended December 31, 2023 2022 Range Weighted Average Rate Discount rates 14% to 19% 17% 22% Customer attrition rates 10% to 30% 19% 20% |
Aggregate Fair Values of Outstanding and Unearned Contingent Consideration Liabilities | The aggregate fair value of these outstanding contingent consideration liabilities and their classification in the accompanying consolidated balance sheets is as follows (in thousands): December 31, 2023 December 31, 2022 Accounts payable and accrued expenses $ — $ 5,000 Insurance and other non-current liabilities 157,073 143,517 Total contingent consideration liabilities $ 157,073 $ 148,517 |
Unaudited Supplemental Pro Forma Results of Operations | The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in 2023, 2022 and 2021, have been provided for illustrative purposes only and may not 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 (in thousands). Year Ended December 31, 2023 2022 2021 Revenues $ 20,995,116 $ 17,702,495 $ 15,527,934 Net income attributable to common stock $ 738,620 $ 486,342 $ 619,304 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Quanta's Goodwill | The changes in the carrying amount of goodwill of each of Quanta’s reportable segments were as follows (in thousands): Electric Power Renewable Energy Segment Underground and Infrastructure Segment Total Balance at December 31, 2021: (1) $ 1,387,418 $ 1,461,192 $ 680,276 $ 3,528,886 Goodwill related to acquisition completed in 2022 12,225 — — 12,225 Purchase price allocation adjustments (2) 962 64,874 580 66,416 Foreign currency translation adjustments (4,464) (7,917) (8,401) (20,782) Balance at December 31, 2022: (1) 1,396,141 1,518,149 672,455 3,586,745 Goodwill related to the acquisitions completed in 2023 189,777 263,854 — 453,631 Purchase price allocation adjustments 338 — — 338 Foreign currency translation adjustments 1,243 2,185 1,763 5,191 Balance at December 31, 2023: (1) $ 1,587,499 $ 1,784,188 $ 674,218 $ 4,045,905 (1) Included in the Underground and Infrastructure segment for the years ended December 31, 2023, 2022, and 2021 was accumulated impairment of $96.1 million, $96.1 million and $96.9 million. (2) |
Other Intangible Assets | Quanta’s identifiable 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, 2023 As of December 31, 2022 Remaining Weighted Average Amortization Period in Years Intangible Accumulated Intangible Intangible Accumulated Intangible Customer relationships 4.5 $ 1,852,249 $ (842,184) $ 1,010,065 $ 1,741,679 $ (600,841) $ 1,140,838 Backlog 2.1 336,149 (297,868) 38,281 282,483 (282,397) 86 Trade names 12.7 378,428 (87,572) 290,856 355,855 (63,190) 292,665 Non-compete agreements 5.0 59,464 (48,687) 10,777 52,356 (44,570) 7,786 Patented rights, developed technology, process certifications and other 1.1 32,985 (29,605) 3,380 32,969 (26,281) 6,688 Curriculum 4.6 14,794 (8,741) 6,053 13,488 (5,920) 7,568 Total intangible assets subject to amortization 6.2 2,674,069 (1,314,657) 1,359,412 2,478,830 (1,023,199) 1,455,631 Engineering license 3,000 — 3,000 3,000 — 3,000 Total intangible assets $ 2,677,069 $ (1,314,657) $ 1,362,412 $ 2,481,830 $ (1,023,199) $ 1,458,631 |
Estimated Future Aggregate Amortization Expense of Intangible Assets | The estimated future aggregate amortization expense of intangible assets subject to amortization as of December 31, 2023 is set forth below (in thousands): Year Ending December 31: 2024 $ 283,627 2025 268,052 2026 246,111 2027 220,349 2028 160,270 Thereafter 181,003 Total $ 1,359,412 |
Investments in Affiliates and_2
Investments in Affiliates and Other Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Investments | The following table presents Quanta’s equity investments by type (in thousands): December 31, 2023 December 31, 2022 Equity method investments - integral unconsolidated affiliates $ 96,124 $ 101,251 Equity method investments - non-integral unconsolidated affiliates 28,105 55,833 Marketable equity securities (1) — — Non-marketable equity securities 53,868 54,134 Total equity investments $ 178,097 $ 211,218 (1 ) As of December 31, 2022, the fair value of Quanta’s investment in equity securities of Starry Group Holdings, Inc. (Starry) was zero, which was accounted for as an investment in marketable securities and included a loss of $91.5 million. During the year ended December 31, 2023, a plan of reorganization in Starry’s bankruptcy proceeding pursuant to Chapter 11 of the U.S. Bankruptcy Code, as amended, went into effect and, as a result, the equity securities of Starry held by Quanta were cancelled. |
Per Share Information (Tables)
Per Share Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 Amounts attributable to common stock: Net income attributable to common stock $ 744,689 $ 491,189 $ 485,956 Weighted average shares: Weighted average shares outstanding for basic earnings per share attributable to common stock 145,222 143,488 140,824 Effect of dilutive unvested non-participating stock-based awards 3,601 4,504 4,549 Weighted average shares outstanding for diluted earnings per share attributable to common stock 148,823 147,992 145,373 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt Obligations | Quanta’s long-term debt obligations consisted of the following (in thousands): December 31, 2023 2022 0.950% Senior Notes due October 2024 $ 500,000 $ 500,000 2.900% Senior Notes due October 2030 1,000,000 1,000,000 2.350% Senior Notes due January 2032 500,000 500,000 3.050% Senior Notes due October 2041 500,000 500,000 Borrowings under senior credit facility (including Term Loan) 867,137 786,910 Borrowings under commercial paper program 705,900 373,000 Lease financing transactions 102,955 83,592 Other long-term debt 6,279 9,315 Finance leases 39,577 3,542 Unamortized discount and financing costs (23,142) (26,432) Total long-term debt obligations 4,198,706 3,729,927 Less — Current maturities of long-term debt 535,202 37,495 Total long-term debt obligations, net of current maturities $ 3,663,504 $ 3,692,432 |
Schedule of Maturities of Long-term Debt | As of December 31, 2023, 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. 2024 $ 527,435 2025 $ 47,250 2026 $ 1,523,540 2027 $ 5,761 2028 $ 2,914 |
Schedule of Long-term Debt Instruments | The interest amounts due on Quanta’s Senior Notes on each payment date are set forth below (dollars in thousands): Title of the Notes Interest Amount Payment Dates Commencement Date 0.950% Senior Notes due October 2024 $ 2,375 April 1 and October 1 April 1, 2022 2.900% Senior Notes due October 2030 $ 14,500 April 1 and October 1 April 1, 2021 2.350% Senior Notes due January 2032 $ 5,875 January 15 and July 15 July 15, 2022 3.050% Senior Notes due October 2041 $ 7,625 April 1 and October 1 April 1, 2022 |
Borrowings under Credit Facility and Applicable Interest Rates | Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands): Year Ended December 31, 2023 2022 2021 Maximum amount outstanding $ 1,004,677 $ 1,684,783 $ 1,463,667 Average daily amount outstanding $ 929,201 $ 1,250,493 $ 591,114 Weighted-average interest rate 6.62 % 3.03 % 1.87 % Borrowings under the commercial paper program and the applicable interest rates were as follows (dollars in thousands): Year Ended December 31, 2023 2022 (1) Maximum amount outstanding $ 938,400 $ 707,300 Average daily amount outstanding $ 644,942 $ 462,359 Weighted-average interest rate 5.82 % 4.47 % (1) The amounts in this column represent activity from August 23, 2022, the date Quanta’s commercial paper program commenced, through December 31, 2022. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 and lease financing cost Classification 2023 2022 2021 Finance lease cost: Amortization of lease assets Depreciation (1) $ 4,944 $ 1,540 $ 1,097 Interest on lease liabilities Interest and other financing expenses 1,463 108 90 Lease financing transactions: (2) Depreciation Depreciation (1) 7,698 5,303 3,423 Interest Interest and other financing expenses 12,992 8,405 5,472 Operating lease cost Cost of services and Selling, general and administrative expenses 93,133 93,539 104,668 Short-term and variable lease cost (3) Cost of services and Selling, general and administrative expenses 1,106,454 953,721 716,722 Total lease and lease financing transactions cost $ 1,226,684 $ 1,062,616 $ 831,472 (1) Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying consolidated statements of operations. (2) 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 these purchase options are exercised by a third-party lessor on behalf of Quanta, the transaction is deemed to be a financing transaction for accounting purposes, which results in the recognition of an asset equal to the purchase price and a corresponding liability. (3) 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 2023 2022 Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 249,443 $ 229,691 Finance lease assets Property and equipment, net of accumulated depreciation 35,770 3,238 Lease financing transaction assets Property and equipment, net of accumulated depreciation 102,955 83,591 Total lease and lease financing assets $ 388,168 $ 316,520 Liabilities: Current: Operating Current portion of operating lease liabilities $ 77,995 $ 74,052 Finance Current maturities of long-term debt and short-term debt 7,767 1,433 Lease financing transaction liabilities Current maturities of long-term debt and short-term debt 7,345 15,034 Non-current: Operating Operating lease liabilities, net of current portion 186,996 171,512 Finance Long-term debt, net of current maturities 31,810 2,109 Lease financing transaction liabilities Long-term debt, net of current maturities 95,610 68,557 Total lease and lease financing liabilities $ 407,523 $ 332,697 |
Future Minimum Lease Payments - Operating Leases | Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands): As of December 31, 2023 Operating Leases Finance Leases Total 2024 $ 87,354 $ 8,869 $ 96,223 2025 70,047 8,527 78,574 2026 52,359 8,277 60,636 2027 35,844 7,735 43,579 2028 20,782 7,418 28,200 Thereafter 24,856 6,003 30,859 Total future minimum payments related to operating leases, finance leases and lease financing transactions 291,242 46,829 338,071 Less imputed interest (26,251) (7,252) (33,503) Total $ 264,991 $ 39,577 $ 304,568 |
Future Minimum Lease Payments - Finance Leases and Equipment Lease Financing Transactions | Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands): As of December 31, 2023 Operating Leases Finance Leases Total 2024 $ 87,354 $ 8,869 $ 96,223 2025 70,047 8,527 78,574 2026 52,359 8,277 60,636 2027 35,844 7,735 43,579 2028 20,782 7,418 28,200 Thereafter 24,856 6,003 30,859 Total future minimum payments related to operating leases, finance leases and lease financing transactions 291,242 46,829 338,071 Less imputed interest (26,251) (7,252) (33,503) Total $ 264,991 $ 39,577 $ 304,568 |
Other Information Related to Leases | The weighted average remaining lease terms and discount rates were as follows: As of December 31, 2023 2022 Weighted average remaining lease term (in years): Operating leases 4.34 4.39 Finance leases 5.69 2.93 Weighted average discount rate: Operating leases 4.3 % 3.5 % Finance leases 6.3 % 3.1 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 Income before income taxes: Domestic $ 823,691 $ 532,051 $ 534,302 Foreign 146,265 171,835 88,599 Total $ 969,956 $ 703,886 $ 622,901 |
Provision for Income Taxes | The components of the provision for income taxes were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current: Federal $ 132,727 $ 97,673 $ 65,273 State 42,783 29,439 32,930 Foreign 39,941 23,078 6,644 Total current tax provision 215,451 150,190 104,847 Deferred: Federal 16,055 29,657 27,762 State (556) 4,225 (2,418) Foreign (11,683) 8,171 727 Total deferred tax provision (benefit) 3,816 42,053 26,071 Total provision for income taxes $ 219,267 $ 192,243 $ 130,918 |
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, 2023 2022 2021 Provision at the statutory rate $ 203,691 $ 147,816 $ 130,809 Increases (decreases) resulting from: State taxes 41,920 28,320 27,204 Employee per diems, meals and entertainment 27,039 6,086 3,569 Tax contingency reserves, net 6,882 7,939 844 Foreign taxes 2,927 (638) (9,359) Company-owned life insurance (2,262) 2,917 (6,969) Taxes on certain equity method investments and non-controlling interests (9,519) (12,886) (8,825) Valuation allowance on deferred tax assets (20,177) 23,366 6,107 Stock-based compensation (35,007) (24,066) (21,271) Other 3,773 13,389 8,809 Total provision for income taxes $ 219,267 $ 192,243 $ 130,918 |
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, 2023 2022 Deferred income tax liabilities: Property and equipment $ (350,204) $ (286,950) Goodwill (167,275) (129,491) Leased assets (106,325) (84,870) Retainage (16,590) (28,773) Other (2,318) — Total deferred income tax liabilities (642,712) (530,084) Deferred income tax assets: Lease liabilities 103,308 84,189 Other intangible assets 100,478 73,654 Accruals and reserves 69,081 48,168 Stock and incentive compensation 62,590 55,413 Net operating loss carryforwards 62,523 56,556 Tax credits 28,802 34,413 Equity method investments and non-controlling interests 8,357 5,878 Deferred tax benefits on unrecognized tax positions 6,327 8,899 Other — 5,849 Subtotal 441,466 373,019 Valuation allowance (40,013) (58,461) Total deferred income tax assets 401,453 314,558 Total net deferred income tax liabilities $ (241,259) $ (215,526) The net deferred income tax assets and liabilities comprised the following in the accompanying consolidated balance sheets (in thousands): December 31, 2023 2022 Deferred income taxes: Assets $ 12,745 $ 12,335 Liabilities (254,004) (227,861) Total net deferred income tax liabilities $ (241,259) $ (215,526) |
Reconciliation of Unrecognized Tax Benefit | A reconciliation of unrecognized tax benefit balances is as follows (in thousands): December 31, 2023 2022 2021 Balance at beginning of year $ 41,639 $ 37,737 $ 33,219 Additions based on tax positions related to the current year 10,304 11,699 6,881 Additions for tax positions of prior years — 230 2,339 Reductions for tax positions of prior years — (407) — Reductions for audit settlements — (2,207) — Reductions resulting from a lapse of the applicable statute of limitations periods (6,807) (5,413) (4,702) Balance at end of year $ 45,136 $ 41,639 $ 37,737 |
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, 2023 Unrecognized tax benefits $ 45,136 Portion that, if recognized, would reduce tax expense and effective tax rate $ 42,650 Accrued interest on unrecognized tax benefits $ 4,903 Accrued penalties on unrecognized tax benefits $ 1,085 Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months $0 to $8,932 Portion that, if recognized, would reduce tax expense and effective tax rate $0 to $8,660 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Treasury Stock | Quanta repurchased the following shares of common stock in the open market under the stock repurchase programs (in thousands): Year ended: Shares Amount December 31, 2023 2 $ 350 December 31, 2022 1,061 $ 127,747 December 31, 2021 721 $ 63,988 |
Dividends | Quanta declared and paid the following cash dividends and cash dividend equivalents during 2023, 2022 and 2021 (in thousands, except per share amounts): Declaration Record Payment Dividend Dividends Date Date Date Per Share Declared December 5, 2023 January 2, 2024 January 12, 2024 $ 0.09 $ 13,412 August 30, 2023 October 2, 2023 October 13, 2023 $ 0.08 $ 12,430 May 23, 2023 July 3, 2023 July 14, 2023 $ 0.08 $ 11,893 March 29, 2023 April 10, 2023 April 18, 2023 $ 0.08 $ 12,100 December 13, 2022 January 3, 2023 January 13, 2023 $ 0.08 $ 11,756 August 31, 2022 October 3, 2022 October 14, 2022 $ 0.07 $ 10,322 May 27, 2022 July 1, 2022 July 15, 2022 $ 0.07 $ 10,283 March 31, 2022 April 11, 2022 April 18, 2022 $ 0.07 $ 10,459 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 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022 and 2021 is as follows (RSUs in thousands): 2023 2022 2021 RSUs Weighted Average RSUs Weighted Average RSUs Weighted Average Unvested at January 1 3,263 $78.74 3,880 $61.64 3,869 $37.57 Granted 684 $161.81 860 $113.07 1,642 $94.83 Vested (1,268) $68.06 (1,319) $50.60 (1,476) $37.03 Forfeited (131) $116.29 (158) $84.94 (155) $48.52 Unvested at December 31 2,548 $104.76 3,263 $78.74 3,880 $61.64 A summary of the activity for PSUs to be settled in common stock for the years ended December 31, 2023, 2022 and 2021 is as follows (PSUs in thousands): 2023 2022 2021 PSUs Weighted Average PSUs Weighted Average PSUs Weighted Average Grant Date Fair Value (Per Unit) Unvested at January 1 733 $65.39 931 $47.27 1,047 $37.65 Granted 177 $174.50 153 $119.74 174 $90.44 Vested (413) $35.12 (334) $40.15 (268) $38.28 Forfeited (6) $101.66 (17) $58.79 (22) $41.86 Unvested at December 31 491 $129.70 733 $65.39 931 $47.27 |
Grant Date Fair Value for Awards of Performance Units Inputs | The Monte Carlo simulation valuation methodology applied the following key inputs: 2023 2022 2021 Valuation date price based on March 9, 2023, March 2, 2022 and March 25, 2021 closing stock prices of Quanta common stock $160.55 $110.24 $83.48 Expected volatility 35 % 39 % 36 % Risk-free interest rate 4.62 % 1.64 % 0.26 % Term in years 2.81 2.83 2.77 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 and 2022 relates to the plans’ fiscal year-ends in 2022 and 2021. Forms 5500 were not yet available for the plan years ending in 2023. The PPA zone status is based on information that Quanta received from the respective plans’ administrators, as well as publicly available information on the U.S. Department of Labor website, and is certified by each 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 2023 2022 2023 2022 2021 National Electrical Benefit Fund 53-0181657 Green Green No $ 47,126 $ 47,390 $ 38,195 No Varies through November 2027 Excavators Union Local 731 Pension Fund 13-1809825 Green Green No 11,411 20,733 16,202 No April 2026 Central Pension Fund of the IUOE & Participating Employers 36-6052390 Green Green No 7,396 11,989 11,237 No Varies through May 2027 Eighth District Electrical Pension Fund 84-6100393 Green Green No 6,169 5,119 1,599 No Varies through September 2026 Laborers Pension Trust Fund for Northern California 94-6277608 Green Green No 3,342 4,849 4,479 No Varies through June 2026 Operating Engineers Local 324 Pension Fund 38-1900637 Red Red Yes 3,193 2,951 2,789 No Varies through April 2026 Pipeline Industry Pension Fund 73-6146433 Green Green No 2,733 2,477 5,081 No Varies through June 2024 Construction Laborers Pension Trust Fund for Southern California 43-6159056 Green Green No 2,729 1,355 893 No June 2026 Locals 302 & 612 of the IUOE - Employers Construction Industry Retirement Fund 91-6028571 Green Green No 2,707 1,675 2,084 No Varies through May 2026 Central Laborers Pension Fund 37-6052379 Yellow Yellow Yes 2,342 739 470 No June 2024 Local 697 I.B.E.W. and Electrical Industry Pension Plan 51-6133048 Green Green No 2,227 2,509 2,229 No May 2025 Pension Trust Fund for Operating Engineers 94-6090764 Yellow Yellow No 2,176 1,898 1,755 No Varies through June 2025 IBEW Local 1249 Pension Plan 15-6035161 Green Green No 1,931 4,558 2,667 No Varies through May 2025 Operating Engineers Pension Trust 95-6032478 Yellow Yellow No 1,473 1,360 1,143 Yes Varies through April 2026 Employer - Teamsters Local Nos 175 & 505 Pension Trust Fund 55-6021850 Red Red Yes 1,027 52 151 No June 2024 Laborers National Pension Fund 75-1280827 Red Red Yes 746 667 1,049 Yes June 2026 Laborers District Council of W PA Pension Fund 25-6135576 Yellow Yellow Yes 488 110 1,375 No June 2026 All other plans - U.S. 38,033 37,723 36,804 All other plans - Canada (1) 12,515 19,245 2,794 Total contributions $ 149,764 $ 167,399 $ 132,996 (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, 2022 and 2021. Forms 5500 were not yet available for these plans for the year ended December 31, 2023. Pension Fund Plan Years in which Quanta Contributions Were Five Percent or More of Total Plan Contributions National Electrical Benefit Fund 2022 and 2021 Excavators Union Local 731 Pension Fund 2022 and 2021 Eighth District Electrical Pension Fund 2022 Pipeline Industry Pension Fund 2022 and 2021 Local 697 I.B.E.W. and Electrical Industry Pension Plan 2022 and 2021 IBEW Local 1249 Pension Plan 2022 Local Union No 9 I.B.E.W and Outside Contractors Pension Fund (1) 2022 and 2021 I.B.E.W. Local 456 Pension Plan (1) 2022 and 2021 Teamster National Pipe Line Pension Plan (1) 2022 and 2021 (1) This plan is included in the “All other plans - U.S.” category in the prior table. |
Schedule of Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits by Title of Individual and Type of Deferred Compensation | Changes in the fair market value of Quanta’s COLI assets and deferred compensation liabilities largely offset and are recorded in the accompanying statements of operations as follows (in thousands): Year Ended December 31, Classification Change in fair market value of 2023 2022 2021 (Loss) gain included in Selling, general and administrative expenses Deferred compensation liabilities $ (13,325) $ 13,192 $ (10,428) Other income (expense), net COLI assets $ 11,587 $ (13,757) $ 8,566 |
Detail of Certain Accounts (Tab
Detail of Certain Accounts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash and Cash Equivalents | Amounts related to cash and cash equivalents held by consolidated or proportionately consolidated 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, 2023 2022 Cash and cash equivalents held by domestic joint ventures $ 41,427 $ 14,291 Cash and cash equivalents held by foreign joint ventures 10,968 6,277 Total cash and cash equivalents held by joint ventures 52,395 20,568 Cash and cash equivalents held by captive insurance company 19,088 35,085 Cash and cash equivalents not held by joint ventures or captive insurance company 1,218,765 372,852 Total cash and cash equivalents $ 1,290,248 $ 428,505 |
Property and Equipment | Property and equipment consisted of the following (in thousands): Estimated Useful December 31, Lives in Years 2023 2022 Land N/A $ 102,839 $ 90,715 Buildings and leasehold improvements 5-30 456,004 396,003 Operating machinery, equipment and vehicles 1-25 3,069,882 2,726,546 Office equipment, furniture and fixtures and information technology systems 3-10 290,687 282,282 Construction work in progress N/A 73,018 84,446 Finance lease assets and lease financing transactions 5-20 165,923 101,385 Property and equipment, gross 4,158,353 3,681,377 Less — Accumulated depreciation and amortization (1,821,410) (1,650,913) Property and equipment, net of accumulated depreciation $ 2,336,943 $ 2,030,464 |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following (in thousands): December 31, 2023 2022 Accounts payable, trade $ 2,027,588 $ 1,302,086 Accrued compensation and related expenses 526,221 469,048 Other accrued expenses 507,433 381,995 Accounts payable and accrued expenses $ 3,061,242 $ 2,153,129 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
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, 2023 2022 2021 2020 Cash and cash equivalents $ 1,290,248 $ 428,505 $ 229,097 $ 184,620 Restricted cash included in “Prepaid expenses and other current assets” (1) 3,652 3,759 1,836 1,275 Restricted cash included in “Other assets, net” (1) 1,141 950 954 913 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 1,295,041 $ 433,214 $ 231,887 $ 186,808 (1) Restricted cash includes any cash that is legally restricted as to withdrawal or usage. Additional supplemental cash flow information is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cash (paid) received during the period for: Interest paid $ (175,782) $ (106,052) $ (52,737) Income taxes paid $ (248,527) $ (111,569) $ (125,328) Income tax refunds $ 6,483 $ 8,281 $ 13,257 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ (95,900) $ (95,175) $ (104,434) Operating cash flows used by finance leases $ (1,463) $ (108) $ (90) Financing cash flows used by finance leases $ (2,511) $ (1,457) $ (1,001) Lease assets obtained in exchange for lease liabilities: Operating leases $ 100,594 $ 77,826 $ 73,713 Finance leases $ 37,299 $ 2,331 $ 1,044 Lease financing transaction assets obtained in exchange for lease financing transaction liabilities $ 26,969 $ 35,144 $ 11,713 |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies - Stock-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2023 | |
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 | Unequal Installments | Minimum | |
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 | Unequal Installments | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 10 years |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Required performance period | 3 years |
PSUs | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance units performance percentage | 0% |
PSUs | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance units performance percentage | 200% |
PSUs | Equal Installments | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Revenue Recognition and Relat_3
Revenue Recognition and Related Balance Sheet Accounts - Performance Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligation | $ 13,890 | $ 8,800 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percent of remaining performance obligation expected to be recognized | 72.10% | |
Recognition period for remaining performance obligation (in years) | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percent of remaining performance obligation expected to be recognized | 66.90% | |
Recognition period for remaining performance obligation (in years) | 12 months |
Revenue Recognition and Relat_4
Revenue Recognition and Related Balance Sheet Accounts - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) pool | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) customer pool | Dec. 31, 2022 USD ($) customer | Dec. 31, 2021 USD ($) customer | |
Revenue Recognition [Line Items] | |||||
Revenues recognized related to change orders and claims | $ 778,900,000 | $ 549,300,000 | $ 778,900,000 | $ 549,300,000 | |
Change in contract estimates, favorable (unfavorable) impact on revenue, percent | 0.40% | 0.70% | 1% | ||
Change in contract estimates, (favorable) unfavorable impact on operating results, percent | (5.70%) | ||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | $ 0 | $ (111,500,000) | |||
Percent of total revenues recognized associated with revenue recognition method | 56.50% | 51.60% | 45.90% | ||
Revenue recognized related to amounts in contract liabilities outstanding at the beginning of period | $ 1,040,000,000 | $ 695,100,000 | $ 433,300,000 | ||
Number of pools | pool | 2 | 2 | |||
Current retainage balances | $ 610,000,000 | 397,600,000 | $ 610,000,000 | 397,600,000 | |
Non-current retainage balances | 78,700,000 | 136,200,000 | 78,700,000 | 136,200,000 | |
Unbilled receivables | $ 743,600,000 | $ 823,900,000 | 743,600,000 | $ 823,900,000 | $ 679,000,000 |
Canada Transmission Project | |||||
Revenue Recognition [Line Items] | |||||
Change in contract estimates, (favorable) unfavorable impact on operating results, amount | $ 20,900,000 | ||||
Customer Concentration Risk | |||||
Revenue Recognition [Line Items] | |||||
Number of customers representing ten percent or more of revenues | customer | 0 | 0 | 0 | ||
Accounts Receivable | Customer Concentration Risk | Renewable Energy | |||||
Revenue Recognition [Line Items] | |||||
Concentration risk (in percent) | 10% | 10% | |||
Financial Instruments | Credit Concentration Risk | Secondary Pool | |||||
Revenue Recognition [Line Items] | |||||
Concentration risk (in percent) | 14% | ||||
Limetree Bay Refining, LLC | |||||
Revenue Recognition [Line Items] | |||||
Write-offs charged against the allowance net of recoveries of amounts previously written off | $ 31,700,000 | ||||
Accounts payable and accrued expenses | |||||
Revenue Recognition [Line Items] | |||||
Unearned revenues | $ 58,600,000 | $ 59,600,000 | $ 58,600,000 | $ 59,600,000 | $ 51,800,000 |
Projects In Progress | |||||
Revenue Recognition [Line Items] | |||||
Change in contract estimates, (favorable) unfavorable impact on operating results, percent | 5% | 5% |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 20,882,206 | $ 17,073,903 | $ 12,980,213 |
Percentage of total revenues | 100% | 100% | 100% |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 17,910,892 | $ 14,390,237 | $ 11,068,493 |
Percentage of total revenues | 85.80% | 84.30% | 85.30% |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 2,045,999 | $ 2,020,853 | $ 1,557,117 |
Percentage of total revenues | 9.80% | 11.80% | 12% |
Australia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 612,497 | $ 428,321 | $ 221,038 |
Percentage of total revenues | 2.90% | 2.50% | 1.70% |
Others | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 312,818 | $ 234,492 | $ 133,565 |
Percentage of total revenues | 1.50% | 1.40% | 1% |
Fixed price contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 10,251,037 | $ 7,282,537 | $ 4,849,038 |
Percentage of total revenues | 49.10% | 42.70% | 37.40% |
Unit-price contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 6,586,982 | $ 5,927,335 | $ 5,029,100 |
Percentage of total revenues | 31.50% | 34.70% | 38.70% |
Cost-plus contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 4,044,187 | $ 3,864,031 | $ 3,102,075 |
Percentage of total revenues | 19.40% | 22.60% | 23.90% |
Revenue Recognition and Relat_6
Revenue Recognition and Related Balance Sheet Accounts - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 1,413,057 | $ 1,080,206 | $ 803,453 |
Contract liabilities | $ 1,538,677 | $ 1,141,518 | $ 802,872 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 15,644 | $ 49,749 | $ 16,546 |
Increase in provision for credit losses | 5,927 | 350 | 34,890 |
Write-offs charged against the allowance net of recoveries of amounts previously written off | (7,609) | (34,455) | (1,687) |
Balance at end of year | $ 13,962 | $ 15,644 | $ 49,749 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Summarize
Segment Information - Summarized Financial Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 20,882,206,000 | $ 17,073,903,000 | $ 12,980,213,000 |
Operating income (loss) | $ 1,127,976,000 | $ 872,058,000 | $ 663,521,000 |
Operating income (loss) margin (in percent) | 5.40% | 5.10% | 5.10% |
Equity in earnings of integral unconsolidated affiliates | $ 41,609,000 | $ 52,466,000 | $ 44,061,000 |
Asset impairment charges | 0 | 14,457,000 | 5,743,000 |
Amortization of intangible assets | 289,014,000 | 353,973,000 | 165,366,000 |
Non-cash stock compensation expense | 126,762,000 | 105,600,000 | 88,259,000 |
Depreciation | $ 324,786,000 | $ 290,647,000 | $ 255,529,000 |
Revenue from Contract with Customer, Segment Benchmark | Segment Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk (in percent) | 100% | 100% | 100% |
Software implementation project | |||
Segment Reporting Information [Line Items] | |||
Asset impairment charges | $ 11,700,000 | ||
Fair value | $ 0 | ||
Operating Segments | Electric Power | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9,696,897,000 | 8,940,276,000 | $ 7,624,240,000 |
Operating income (loss) | $ 1,013,350,000 | $ 958,798,000 | $ 865,409,000 |
Operating income (loss) margin (in percent) | 10.50% | 10.70% | 11.40% |
Depreciation | $ 168,486,000 | $ 149,151,000 | $ 141,093,000 |
Operating Segments | Electric Power | Revenue from Contract with Customer, Segment Benchmark | Segment Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk (in percent) | 46.50% | 52.40% | 58.70% |
Operating Segments | Renewable Energy | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 6,170,301,000 | $ 3,778,560,000 | $ 1,825,259,000 |
Operating income (loss) | $ 477,208,000 | $ 304,308,000 | $ 181,908,000 |
Operating income (loss) margin (in percent) | 7.70% | 8.10% | 10% |
Depreciation | $ 54,369,000 | $ 40,535,000 | $ 14,020,000 |
Operating Segments | Renewable Energy | Revenue from Contract with Customer, Segment Benchmark | Segment Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk (in percent) | 29.50% | 22.10% | 14.10% |
Operating Segments | Underground and Infrastructure | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 5,015,008,000 | $ 4,355,067,000 | $ 3,530,714,000 |
Operating income (loss) | $ 377,977,000 | $ 317,543,000 | $ 150,147,000 |
Operating income (loss) margin (in percent) | 7.50% | 7.30% | 4.30% |
Depreciation | $ 77,524,000 | $ 83,117,000 | $ 83,720,000 |
Operating Segments | Underground and Infrastructure | Revenue from Contract with Customer, Segment Benchmark | Segment Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk (in percent) | 24% | 25.50% | 27.20% |
Corporate and Non-Allocated | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ (740,559,000) | $ (708,591,000) | $ (533,943,000) |
Operating income (loss) margin (in percent) | (3.50%) | (4.20%) | (4.10%) |
Non-cash stock compensation expense | $ 126,800,000 | $ 105,600,000 | $ 88,300,000 |
Depreciation | $ 24,407,000 | $ 17,844,000 | $ 16,696,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Oct. 13, 2021 USD ($) shares | Jan. 31, 2024 USD ($) business shares | Jul. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) business shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) business shares | |
Business Acquisition [Line Items] | ||||||
Fair value of contingent consideration liability | $ 157,073 | $ 148,517 | ||||
Goodwill expected to be deductible for income tax purposes | 394,600 | 12,600 | $ 1,490,000 | |||
Cash payment for contingent consideration liabilities | 5,000 | 1,600 | $ 300 | |||
Construction Contracting Services Business Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate cash consideration paid | $ 22,300 | |||||
Post-acquisition period, financial performance objectives | 5 years | |||||
Blattner Holding Company | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate cash consideration paid | $ 2,430,000 | |||||
Number of shares granted for acquired companies (in shares) | shares | 3,326,955 | |||||
Value of Quanta common stock issued | $ 345,400 | |||||
Post-acquisition period, financial performance objectives | 3 years | |||||
Contingent consideration payments (up to) | $ 300,000 | |||||
Fair value of contingent consideration liability | 139,900 | |||||
Businesses That Provide Various Services In The United States | Subsequent Event | ||||||
Business Acquisition [Line Items] | ||||||
Number of businesses acquired | business | 2 | |||||
Aggregate cash consideration paid | $ 379,900 | |||||
Number of shares granted for acquired companies (in shares) | shares | 221,700 | |||||
Value of Quanta common stock issued | $ 44,900 | |||||
Post-acquisition period, financial performance objectives | 3 years | |||||
Acquisitions In 2021 Excluding Blattner | ||||||
Business Acquisition [Line Items] | ||||||
Number of businesses acquired | business | 3 | |||||
Number of shares granted for acquired companies (in shares) | shares | 187,093 | |||||
Value of Quanta common stock issued | $ 16,900 | |||||
Cash consideration | 328,200 | |||||
All Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration payments (up to) | $ 336,800 | |||||
Acquisitions 2022 | ||||||
Business Acquisition [Line Items] | ||||||
Value of Quanta common stock issued | 0 | |||||
Cash consideration | 22,328 | |||||
Fair value of contingent consideration liability | 2,600 | |||||
Revenues included in consolidated results of operations | 15,500 | |||||
Income from continuing operations before income taxes included in consolidated results of operations | 2,000 | |||||
Amortization expense | 1,400 | |||||
Acquisition-related costs | $ 600 | |||||
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 | |||||
Acquisitions 2023 | ||||||
Business Acquisition [Line Items] | ||||||
Number of businesses acquired | business | 5 | |||||
Number of shares granted for acquired companies (in shares) | shares | 1,238,576 | |||||
Value of Quanta common stock issued | $ 158,922 | |||||
Cash consideration | 782,351 | |||||
Fair value of contingent consideration liability | 6,850 | |||||
Revenues included in consolidated results of operations | 475,200 | |||||
Income from continuing operations before income taxes included in consolidated results of operations | (15,900) | |||||
Amortization expense | 34,700 | |||||
Acquisition-related costs | $ 31,800 |
Acquisitions - Aggregate Consid
Acquisitions - Aggregate Consideration Paid or Payable and Allocation of Net Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Contingent consideration | $ 157,073 | $ 148,517 | |
Goodwill | 4,045,905 | 3,586,745 | $ 3,528,886 |
Acquisitions 2023 | |||
Business Acquisition [Line Items] | |||
Cash paid or payable | 782,351 | ||
Value of Quanta common stock issued | 158,922 | ||
Contingent consideration | 6,850 | ||
Fair value of total consideration transferred or estimated to be transferred | 948,123 | ||
Cash and cash equivalents | 123,891 | ||
Accounts receivable | 92,799 | ||
Contract assets | 17,200 | ||
Inventories | 74,872 | ||
Prepaid expenses and other current assets | 5,830 | ||
Property and equipment | 200,988 | ||
Operating lease assets | 16,264 | ||
Other assets | 4,553 | ||
Identifiable intangible assets | 191,115 | ||
Accounts payable and accrued liabilities | (89,227) | ||
Contract liabilities | (102,752) | ||
Operating lease liabilities, current | (3,080) | ||
Deferred tax liabilities, net | (21,489) | ||
Operating lease liabilities, non-current | (13,790) | ||
Other long-term liabilities | (2,682) | ||
Total identifiable net assets | 494,492 | ||
Goodwill | 453,631 | ||
Fair value of net assets acquired | $ 948,123 | ||
Acquisitions 2022 | |||
Business Acquisition [Line Items] | |||
Cash paid or payable | 22,328 | ||
Value of Quanta common stock issued | 0 | ||
Contingent consideration | 2,600 | ||
Fair value of total consideration transferred or estimated to be transferred | 24,928 | ||
Cash and cash equivalents | 101 | ||
Accounts receivable | 1,755 | ||
Contract assets | 0 | ||
Inventories | 0 | ||
Prepaid expenses and other current assets | 72 | ||
Property and equipment | 2,266 | ||
Operating lease assets | 0 | ||
Other assets | 0 | ||
Identifiable intangible assets | 13,109 | ||
Accounts payable and accrued liabilities | (1,408) | ||
Contract liabilities | (3,530) | ||
Operating lease liabilities, current | 0 | ||
Deferred tax liabilities, net | 0 | ||
Operating lease liabilities, non-current | 0 | ||
Other long-term liabilities | 0 | ||
Total identifiable net assets | 12,365 | ||
Goodwill | 12,563 | ||
Fair value of net assets acquired | $ 24,928 |
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, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 191,115 | $ 13,109 |
Weighted Average Amortization Period in Years | 5 years 3 months 18 days | 6 years 4 months 24 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 108,780 | $ 11,565 |
Weighted Average Amortization Period in Years | 4 years 10 months 24 days | 6 years |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 53,064 | $ 557 |
Weighted Average Amortization Period in Years | 2 years | 6 months |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 22,297 | $ 850 |
Weighted Average Amortization Period in Years | 15 years | 15 years |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 6,974 | $ 137 |
Weighted Average Amortization Period in Years | 5 years | 5 years |
Acquisitions - Significant Esti
Acquisitions - Significant Estimates Used by Management in Determining Fair Values of Customer Relationships Acquired (Details) - Customer relationships | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill And Intangible Assets [Line Items] | ||
Discount rates | 22% | |
Customer attrition rates | 20% | |
Minimum | ||
Goodwill And Intangible Assets [Line Items] | ||
Discount rates | 14% | |
Customer attrition rates | 10% | |
Maximum | ||
Goodwill And Intangible Assets [Line Items] | ||
Discount rates | 19% | |
Customer attrition rates | 30% | |
Weighted Average | ||
Goodwill And Intangible Assets [Line Items] | ||
Discount rates | 17% | |
Customer attrition rates | 19% |
Acquisitions - Aggregate Fair V
Acquisitions - Aggregate Fair Values of Outstanding Contingent Consideration Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Business Acquisition, Contingent Consideration [Line Items] | ||
Total contingent consideration liabilities | $ 157,073 | $ 148,517 |
Accounts payable and accrued expenses | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Accounts payable and accrued expenses | 0 | 5,000 |
Insurance and other non-current liabilities | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Insurance and other non-current liabilities | $ 157,073 | $ 143,517 |
Acquisitions - Unaudited Supple
Acquisitions - Unaudited Supplemental Pro Forma Results of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |||
Revenues | $ 20,995,116 | $ 17,702,495 | $ 15,527,934 |
Net income attributable to common stock | $ 738,620 | $ 486,342 | $ 619,304 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Goodwill net, beginning balance | $ 3,586,745 | $ 3,528,886 | |
Goodwill acquired | 453,631 | 12,225 | |
Purchase price allocation adjustments | 338 | 66,416 | |
Foreign currency translation adjustments | 5,191 | (20,782) | |
Goodwill net, ending balance | 4,045,905 | 3,586,745 | |
Goodwill, impaired, accumulated impairment loss | 96,100 | 96,100 | $ 96,900 |
Electric Power Segment | |||
Goodwill [Roll Forward] | |||
Goodwill net, beginning balance | 1,396,141 | 1,387,418 | |
Goodwill acquired | 189,777 | 12,225 | |
Purchase price allocation adjustments | 338 | 962 | |
Foreign currency translation adjustments | 1,243 | (4,464) | |
Goodwill net, ending balance | 1,587,499 | 1,396,141 | |
Renewable Energy Segment | |||
Goodwill [Roll Forward] | |||
Goodwill net, beginning balance | 1,518,149 | 1,461,192 | |
Goodwill acquired | 263,854 | 0 | |
Purchase price allocation adjustments | 0 | 64,874 | |
Foreign currency translation adjustments | 2,185 | (7,917) | |
Goodwill net, ending balance | 1,784,188 | 1,518,149 | |
Underground and Infrastructure Segment | |||
Goodwill [Roll Forward] | |||
Goodwill net, beginning balance | 672,455 | 680,276 | |
Goodwill acquired | 0 | 0 | |
Purchase price allocation adjustments | 0 | 580 | |
Foreign currency translation adjustments | 1,763 | (8,401) | |
Goodwill net, ending balance | $ 674,218 | $ 672,455 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 2,674,069 | $ 2,478,830 |
Accumulated Amortization | (1,314,657) | (1,023,199) |
Total | $ 1,359,412 | 1,455,631 |
Remaining Weighted Average Amortization Period | 6 years 2 months 12 days | |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 2,677,069 | 2,481,830 |
Intangible Assets, Net | 1,362,412 | 1,458,631 |
Engineering license | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible Assets | 3,000 | 3,000 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | 1,852,249 | 1,741,679 |
Accumulated Amortization | (842,184) | (600,841) |
Total | $ 1,010,065 | 1,140,838 |
Remaining Weighted Average Amortization Period | 4 years 6 months | |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 336,149 | 282,483 |
Accumulated Amortization | (297,868) | (282,397) |
Total | $ 38,281 | 86 |
Remaining Weighted Average Amortization Period | 2 years 1 month 6 days | |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 378,428 | 355,855 |
Accumulated Amortization | (87,572) | (63,190) |
Total | $ 290,856 | 292,665 |
Remaining Weighted Average Amortization Period | 12 years 8 months 12 days | |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 59,464 | 52,356 |
Accumulated Amortization | (48,687) | (44,570) |
Total | $ 10,777 | 7,786 |
Remaining Weighted Average Amortization Period | 5 years | |
Patented rights, developed technology, process certifications and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 32,985 | 32,969 |
Accumulated Amortization | (29,605) | (26,281) |
Total | $ 3,380 | 6,688 |
Remaining Weighted Average Amortization Period | 1 year 1 month 6 days | |
Curriculum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 14,794 | 13,488 |
Accumulated Amortization | (8,741) | (5,920) |
Total | $ 6,053 | $ 7,568 |
Remaining Weighted Average Amortization Period | 4 years 7 months 6 days |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 289,014 | $ 353,973 | $ 165,366 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Future Aggregate Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 283,627 | |
2025 | 268,052 | |
2026 | 246,111 | |
2027 | 220,349 | |
2028 | 160,270 | |
Thereafter | 181,003 | |
Total | $ 1,359,412 | $ 1,455,631 |
Investments in Affiliates and_3
Investments in Affiliates and Other Entities - Equity Investments by Type (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Marketable equity securities | $ 0 | $ 0 |
Non-marketable equity securities | 54,134,000 | 53,868,000 |
Total equity investments | 211,218,000 | 178,097,000 |
Integral Affiliates | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 101,251,000 | 96,124,000 |
Non-Integral Unconsolidated Affiliates | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 55,833,000 | $ 28,105,000 |
Starry Group Holdings, Inc. | ||
Schedule of Equity Method Investments [Line Items] | ||
Marketable equity securities | 0 | |
Marketable security, unrealized gain (loss) | $ (91,500,000) |
Investments in Affiliates and_4
Investments in Affiliates and Other Entities - Equity Method Investments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) investment | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Distributions to non-controlling interests | $ 10,241 | $ 9,946 | $ 6,357 | |
Accounts receivable, net | $ 3,674,525 | 4,410,829 | 3,674,525 | |
Accounts payable and accrued expenses | 2,153,129 | 3,061,242 | 2,153,129 | |
Revenues | 20,882,206 | 17,073,903 | 12,980,213 | |
Cost of services | 17,945,120 | 14,544,748 | 11,026,954 | |
Equity in earnings of integral unconsolidated affiliates | 41,609 | 52,466 | 44,061 | |
Carrying amount that exceed share of underlying net equity in net assets | 37,800 | 31,400 | 37,800 | |
Amortization of the basis difference | 6,200 | 1,900 | 500 | |
Non-controlling Interests | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Distributions to non-controlling interests | 10,241 | 9,946 | 6,357 | |
Integral Affiliates | Related Party | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Accounts receivable, net | 96,900 | 96,400 | 96,900 | |
Accounts payable and accrued expenses | $ 9,300 | 24,500 | 9,300 | |
Revenues | 215,000 | 154,700 | 74,100 | |
Cost of services | 201,300 | 134,500 | 116,200 | |
Integral Unconsolidated Affiliates | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Equity in earnings of integral unconsolidated affiliates | 41,600 | 52,500 | 44,100 | |
Non-Integral Unconsolidated Affiliates | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of investments sold | investment | 1 | |||
Realized gain (loss) on disposal | $ 25,900 | |||
Total consideration | 58,500 | |||
Equity in earnings of integral unconsolidated affiliates | 1,300 | $ 20,300 | $ 2,100 | |
Non-Integral Unconsolidated Affiliates | Non-controlling Interests | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Realized gain (loss) on disposal | $ 10,400 | |||
Distributions to non-controlling interests | 9,800 | |||
Integral and Non-Integral Unconsolidated Affiliates | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Undistributed earnings of unconsolidated affiliates | $ 18,700 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amounts attributable to common stock: | |||
Net income attributable to common stock, Basic | $ 744,689 | $ 491,189 | $ 485,956 |
Net income attributable to common stock, Diluted | $ 744,689 | $ 491,189 | $ 485,956 |
Weighted average shares: | |||
Weighted average shares outstanding for basic earnings per share attributable to common stock (in shares) | 145,222 | 143,488 | 140,824 |
Effect of dilutive unvested non-participating stock-based awards (in shares) | 3,601 | 4,504 | 4,549 |
Weighted average shares outstanding for diluted earnings per share attributable to common stock (in shares) | 148,823 | 147,992 | 145,373 |
Debt Obligations - Long-term De
Debt Obligations - Long-term Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Borrowings under line of credit | $ 867,137 | $ 786,910 |
Lease financing transactions | 102,955 | 83,592 |
Other long-term debt | 6,279 | 9,315 |
Finance leases | 39,577 | 3,542 |
Unamortized discount and financing costs | (23,142) | (26,432) |
Total long-term debt obligations | 4,198,706 | 3,729,927 |
Less — Current maturities of long-term debt | 535,202 | 37,495 |
Total long-term debt obligations, net of current maturities | 3,663,504 | 3,692,432 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,480,000 | |
Unamortized discount and financing costs | (20,500) | |
0.950% Senior Notes due October 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500,000 | 500,000 |
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 | 500,000 |
3.050% Senior Notes due October 2041 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500,000 | 500,000 |
Commercial Paper Program | Commercial Paper | ||
Debt Instrument [Line Items] | ||
Borrowings under line of credit | $ 705,900 | $ 373,000 |
Debt Obligations - Principal Pa
Debt Obligations - Principal Payments Required to be Made (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 527,435 |
2025 | 47,250 |
2026 | 1,523,540 |
2027 | 5,761 |
2028 | $ 2,914 |
Debt Obligations - Senior Notes
Debt Obligations - Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 23, 2021 | Sep. 22, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Proceeds from notes offerings | $ 0 | $ 0 | $ 1,487,450 | ||
Payments under credit facility | 17,770,246 | 9,323,507 | $ 4,265,478 | ||
Unamortized discount and deferred financing costs related to senior notes | 23,142 | 26,432 | |||
Borrowings under line of credit | 867,137 | 786,910 | |||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Payments under credit facility | $ 1,210,000 | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Fair value of notes | 2,150,000 | ||||
Long-term debt | 2,480,000 | ||||
Unamortized discount and deferred financing costs related to senior notes | 20,500 | ||||
Senior Notes | Senior Notes Due 2024, 2032 And 2041 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument | $ 1,500,000 | ||||
Proceeds from notes offerings | 1,480,000 | ||||
Senior Notes | 0.950% Senior Notes due October 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument | $ 500,000 | ||||
Instrument rate | 0.95% | ||||
Long-term debt | 500,000 | 500,000 | |||
Senior Notes | 2.350% Senior Notes due January 2032 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument | $ 500,000 | ||||
Instrument rate | 2.35% | ||||
Long-term debt | 500,000 | 500,000 | |||
Senior Notes | 3.050% Senior Notes due October 2041 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument | $ 500,000 | ||||
Instrument rate | 3.05% | ||||
Long-term debt | 500,000 | 500,000 | |||
Senior Notes | 2.900% Senior Notes due October 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument | $ 1,000,000 | ||||
Instrument rate | 2.90% | ||||
Proceeds from notes offerings | $ 986,700 | ||||
Long-term debt | $ 1,000,000 | $ 1,000,000 | |||
Senior Notes | All Senior Notes | Debt Instrument, Redemption, Period One | |||||
Debt Instrument [Line Items] | |||||
Redemption price | 100% | ||||
Senior Notes | All Senior Notes | Debt Instrument, Redemption, Period One | Maximum | |||||
Debt Instrument [Line Items] | |||||
Redemption price | 101% | ||||
Senior Notes | All Senior Notes | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument [Line Items] | |||||
Redemption price | 100% | ||||
Line of Credit | Senior Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Borrowings under line of credit | $ 135,800 | ||||
Line of Credit | Senior Credit Facility | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Borrowings under line of credit | $ 731,300 |
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) $ in Thousands | 12 Months Ended | |||||
Aug. 23, 2022 | Aug. 22, 2022 | Oct. 07, 2021 | Sep. 22, 2020 | Dec. 31, 2023 USD ($) quarter | Dec. 31, 2022 USD ($) | |
Line of Credit Facility [Line Items] | ||||||
Borrowings under line of credit | $ 867,137 | $ 786,910 | ||||
Senior Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Option to increase revolving commitments under the credit agreement | 400,000 | |||||
Reduction in Quanta's funded indebtedness reduced by cash and cash equivalents in excess of this amount | $ 25,000 | |||||
Number of fiscal quarters applicable to interest coverage ratio | quarter | 4 | |||||
Credit facility available for revolving loans or issuing new letters of credit | $ 1,520,000 | |||||
Senior Credit Facility | Excess of Federal Funds Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 0.50% | 0.50% | ||||
Senior Credit Facility | Excess of Euro Currency Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1% | |||||
Senior Credit Facility | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee | 0.10% | 0.275% | 0.20% | |||
Senior Credit Facility | Minimum | Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.125% | |||||
Senior Credit Facility | Minimum | Excess of Base Rate Domestic Borrowings Only | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 0.125% | |||||
Senior Credit Facility | Minimum | Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.125% | |||||
Senior Credit Facility | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee | 0.275% | 0.425% | 0.40% | |||
Senior Credit Facility | Maximum | Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 2% | |||||
Senior Credit Facility | Maximum | Excess of Base Rate Domestic Borrowings Only | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1% | |||||
Senior Credit Facility | Maximum | Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 2% | |||||
Senior Credit Facility | Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum consolidated leverage ratio | 3.5 | |||||
Acquisition threshold for leverage ratio | $ 200,000 | |||||
Maximum consolidated leverage ratio permissible under credit agreement | 4 | |||||
Number of fiscal quarters applicable to updated acquisition ratio | quarter | 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 | |||||
Cross default provisions with debt instruments exceeding this amount | 300,000 | |||||
Borrowings under line of credit | 135,800 | |||||
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 | |||||
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 | |||||
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 | |||||
Senior Credit Facility | Term Loan | Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Senior secured revolving credit facility | 750,000 | |||||
Borrowings under line of credit | 731,300 | |||||
Interest rate floor | 1% | |||||
Senior Credit Facility | Term Loan | Line of Credit | Secured Overnight Financing Rate (SOFR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1% | |||||
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% | |||||
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% | |||||
Senior Credit Facility | Term Loan | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1% | |||||
Senior Credit Facility | Term Loan | Line of Credit | Minimum | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 0% | 0% | ||||
Senior Credit Facility | Term Loan | Line of Credit | Minimum | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1% | |||||
Senior Credit Facility | Term Loan | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.625% | |||||
Senior Credit Facility | Term Loan | Line of Credit | Maximum | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 0.625% | 0.625% | ||||
Senior Credit Facility | Term Loan | Line of Credit | Maximum | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.625% | |||||
Senior Credit Facility | Revolving Credit Facility | Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Senior secured revolving credit facility | 2,640,000 | |||||
Senior Credit Facility | Revolving Credit Facility | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.125% | |||||
Senior Credit Facility | Revolving Credit Facility | Line of Credit | Minimum | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 0.125% | |||||
Senior Credit Facility | Revolving Credit Facility | Line of Credit | Minimum | Alternative Currency Term Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.125% | |||||
Senior Credit Facility | Revolving Credit Facility | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.75% | |||||
Senior Credit Facility | Revolving Credit Facility | Line of Credit | Maximum | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 0.75% | |||||
Senior Credit Facility | Revolving Credit Facility | Line of Credit | Maximum | Alternative Currency Term Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.75% | |||||
Senior Credit Facility | Standby Letters of Credit | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.125% | 1.125% | ||||
Senior Credit Facility | Standby Letters of Credit | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.75% | 2% | ||||
Senior Credit Facility | Performance Letters of Credit | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 0.675% | 0.675% | ||||
Senior Credit Facility | Performance Letters of Credit | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.125% | 1.15% | ||||
Senior Credit Facility | Letters of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Letters of credit and bank guarantees under the credit facility | 274,200 | |||||
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 | 177,100 | |||||
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 | 97,100 | |||||
Surety-Backed Letters Of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Limit on surety-backed line of credit | 300,000 | |||||
Letters of credit and bank guarantees under the credit facility | $ 433,300 |
Debt Obligations - Information
Debt Obligations - Information on Borrowings under Current and Prior Credit Facility and Commercial Paper Program (Details) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Maximum amount outstanding | $ 1,004,677 | $ 1,684,783 | $ 1,463,667 | |
Average daily amount outstanding | $ 929,201 | $ 1,250,493 | $ 591,114 | |
Weighted-average interest rate | 6.62% | 3.03% | 1.87% | |
Commercial Paper Program | Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Maximum amount outstanding | $ 707,300 | $ 938,400 | ||
Average daily amount outstanding | $ 462,359 | $ 644,942 | ||
Weighted-average interest rate | 4.47% | 5.82% |
Debt Obligations - Commercial P
Debt Obligations - Commercial Paper Program (Details) - USD ($) $ in Thousands | Aug. 23, 2022 | Dec. 31, 2023 | Oct. 06, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||||
Borrowings under line of credit | $ 867,137 | $ 786,910 | ||
Commercial Paper | Commercial Paper Program | ||||
Debt Instrument [Line Items] | ||||
Senior secured revolving credit facility | $ 1,000,000 | $ 1,500,000 | ||
Renewal term | 397 days | |||
Borrowings under line of credit | $ 705,900 | $ 373,000 | ||
Interest rate | 6% |
Debt Obligations - Letters of C
Debt Obligations - Letters of Credit Outside the Credit Facility (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Surety-Backed Letters Of Credit | |
Line of Credit Facility [Line Items] | |
Surety-backed letters of credit | $ 433.3 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease term (up to) | 11 years | ||
Option to extend the leases (up to) | 5 years | ||
Future minimum lease payments for short-term leases | $ 21.3 | ||
Future undiscounted lease payments under leases | 16.6 | ||
Lease financing transaction, to be paid | $ 73.5 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease terms of operating leases not yet commenced (in years) | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease terms of operating leases not yet commenced (in years) | 10 years | ||
Related Party | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term (up to) | 10 years | ||
Lease expense | $ 16.5 | $ 14.7 | $ 13.9 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance lease cost: | |||
Amortization of lease assets | $ 4,944 | $ 1,540 | $ 1,097 |
Interest on lease liabilities | 1,463 | 108 | 90 |
Lease Financing Transactions [Abstract] | |||
Depreciation | 7,698 | 5,303 | 3,423 |
Interest | 12,992 | 8,405 | 5,472 |
Operating lease cost | 93,133 | 93,539 | 104,668 |
Short-term and variable lease cost | 1,106,454 | 953,721 | 716,722 |
Total lease and lease financing transactions cost | $ 1,226,684 | $ 1,062,616 | $ 831,472 |
Leases - Components of Leases i
Leases - Components of Leases in the Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Operating lease right-of-use assets | $ 249,443 | $ 229,691 |
Finance lease assets | 35,770 | 3,238 |
Lease financing transaction assets | 102,955 | 83,591 |
Total lease and lease financing assets | $ 388,168 | $ 316,520 |
Finance Leased Asset, Type [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Current: | ||
Operating | $ 77,995 | $ 74,052 |
Finance | 7,767 | 1,433 |
Lease financing transaction liabilities | $ 7,345 | $ 15,034 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt | Current maturities of long-term debt |
Non-current: | ||
Operating | $ 186,996 | $ 171,512 |
Finance | 31,810 | 2,109 |
Lease financing transaction liabilities | $ 95,610 | $ 68,557 |
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 | $ 407,523 | $ 332,697 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 87,354 | |
2025 | 70,047 | |
2026 | 52,359 | |
2027 | 35,844 | |
2028 | 20,782 | |
Thereafter | 24,856 | |
Total future minimum lease payments | 291,242 | |
Less imputed interest | (26,251) | |
Total | 264,991 | |
Finance Leases | ||
2024 | 8,869 | |
2025 | 8,527 | |
2026 | 8,277 | |
2027 | 7,735 | |
2028 | 7,418 | |
Thereafter | 6,003 | |
Total future minimum lease payments | 46,829 | |
Less imputed interest | (7,252) | |
Total | 39,577 | $ 3,542 |
Total | ||
2024 | 96,223 | |
2025 | 78,574 | |
2026 | 60,636 | |
2027 | 43,579 | |
2028 | 28,200 | |
Thereafter | 30,859 | |
Total future minimum payments related to operating leases, finance leases and lease financing transactions | 338,071 | |
Less imputed interest | (33,503) | |
Total | $ 304,568 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Weighted average remaining lease term (in years): | ||
Operating leases | 4 years 4 months 2 days | 4 years 4 months 20 days |
Finance leases | 5 years 8 months 8 days | 2 years 11 months 4 days |
Weighted average discount rate: | ||
Operating leases | 4.30% | 3.50% |
Finance leases | 6.30% | 3.10% |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income before income taxes: | |||
Domestic | $ 823,691 | $ 532,051 | $ 534,302 |
Foreign | 146,265 | 171,835 | 88,599 |
Income before income taxes | $ 969,956 | $ 703,886 | $ 622,901 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 132,727 | $ 97,673 | $ 65,273 |
State | 42,783 | 29,439 | 32,930 |
Foreign | 39,941 | 23,078 | 6,644 |
Total current tax provision | 215,451 | 150,190 | 104,847 |
Deferred: | |||
Federal | 16,055 | 29,657 | 27,762 |
State | (556) | 4,225 | (2,418) |
Foreign | (11,683) | 8,171 | 727 |
Total deferred tax provision (benefit) | 3,816 | 42,053 | 26,071 |
Total provision for income taxes | $ 219,267 | $ 192,243 | $ 130,918 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | ||||
Other comprehensive income (loss) other, tax | $ 400,000 | $ (200,000) | $ 400,000 | |
Foreign currency translation adjustment, tax | 0 | 0 | 0 | |
Valuation allowance for deferred income tax assets | 40,013,000 | 58,461,000 | 41,300,000 | |
Change in total valuation allowance, increase (decrease) | (18,500,000) | 17,200,000 | (1,900,000) | |
Increase (decrease) in tax expense | (20,200,000) | 23,300,000 | 6,100,000 | |
Change in expense related to foreign NOLs | 2,900,000 | |||
Marketable security, realized gain (loss) | (91,500,000) | |||
Tax effect of state and foreign net operating loss carryforwards | 62,523,000 | 56,556,000 | ||
Tax carryforwards expiring in year one | 100,000 | |||
Tax carryforwards expiring in year two | 5,700,000 | |||
Tax carryforwards expiring in year three | 1,100,000 | |||
Tax carryforwards expiring in year four | 1,100,000 | |||
Tax carryforwards expiring thereafter | 55,900,000 | |||
Valuation allowance foreign and state net operating loss carryforwards | 30,400,000 | |||
Total amount of unrecognized tax benefits relating to uncertain tax positions | 45,136,000 | 41,639,000 | 37,737,000 | $ 33,219,000 |
Additions based on tax positions related to the current year | 10,304,000 | 11,699,000 | 6,881,000 | |
Reduction related to settlement of audits | 0 | 2,207,000 | 0 | |
Reduction due to expiration of certain federal and state statutes of limitations | 6,807,000 | 5,413,000 | 4,702,000 | |
Interest and penalties expense (income) in the provision for income taxes | 500,000 | 500,000 | (800,000) | |
Starry Group Holdings, Inc. | ||||
Income Taxes [Line Items] | ||||
Change in total valuation allowance, increase (decrease) | 22,700,000 | |||
Unrealized gain (loss) on investments | (91,500,000) | |||
Deferred tax asset, valuation allowance, released | 22,700,000 | |||
Foreign Operating Loss Carryforwards | ||||
Income Taxes [Line Items] | ||||
Change in total valuation allowance, increase (decrease) | 8,500,000 | |||
State And Local Operating Carryforwards | ||||
Income Taxes [Line Items] | ||||
Change in total valuation allowance, increase (decrease) | $ (2,400,000) | |||
Deferred Tax Assets No Longer Available And Currency Translation Adjustments | ||||
Income Taxes [Line Items] | ||||
Change in total valuation allowance, increase (decrease) | $ (4,800,000) | |||
Foreign Net Operating Losses | ||||
Income Taxes [Line Items] | ||||
Change in total valuation allowance, increase (decrease) | 5,600,000 | |||
Foreign Currency Translation Adjustments | ||||
Income Taxes [Line Items] | ||||
Change in total valuation allowance, increase (decrease) | 1,700,000 | |||
Gross Amount Before Balance Sheet Presentation Netting | ||||
Income Taxes [Line Items] | ||||
Tax effect of state and foreign net operating loss carryforwards | $ 63,900,000 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Provision at the statutory rate | $ 203,691 | $ 147,816 | $ 130,809 |
Increases (decreases) resulting from: | |||
State taxes | 41,920 | 28,320 | 27,204 |
Employee per diems, meals and entertainment | 27,039 | 6,086 | 3,569 |
Tax contingency reserves, net | 6,882 | 7,939 | 844 |
Foreign taxes | 2,927 | (638) | (9,359) |
Company-owned life insurance | (2,262) | 2,917 | (6,969) |
Taxes on certain equity method investments and non-controlling interests | (9,519) | (12,886) | (8,825) |
Valuation allowance on deferred tax assets | (20,177) | 23,366 | 6,107 |
Stock-based compensation | (35,007) | (24,066) | (21,271) |
Other | 3,773 | 13,389 | 8,809 |
Total provision for income taxes | $ 219,267 | $ 192,243 | $ 130,918 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income tax liabilities: | |||
Property and equipment | $ (350,204) | $ (286,950) | |
Goodwill | (167,275) | (129,491) | |
Leased assets | (106,325) | (84,870) | |
Retainage | (16,590) | (28,773) | |
Other | (2,318) | 0 | |
Total deferred income tax liabilities | (642,712) | (530,084) | |
Deferred income tax assets: | |||
Lease liabilities | 103,308 | 84,189 | |
Other intangible assets | 100,478 | 73,654 | |
Accruals and reserves | 69,081 | 48,168 | |
Stock and incentive compensation | 62,590 | 55,413 | |
Net operating loss carryforwards | 62,523 | 56,556 | |
Tax credits | 28,802 | 34,413 | |
Equity method investments and non-controlling interests | 8,357 | 5,878 | |
Deferred tax benefits on unrecognized tax positions | 6,327 | 8,899 | |
Other | 0 | 5,849 | |
Subtotal | 441,466 | 373,019 | |
Valuation allowance | (40,013) | (58,461) | $ (41,300) |
Total deferred income tax assets | 401,453 | 314,558 | |
Total net deferred income tax liabilities | $ (241,259) | $ (215,526) |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income taxes: | ||
Assets | $ 12,745 | $ 12,335 |
Liabilities | (254,004) | (227,861) |
Total net deferred income tax liabilities | $ (241,259) | $ (215,526) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of year | $ 41,639 | $ 37,737 | $ 33,219 |
Additions based on tax positions related to the current year | 10,304 | 11,699 | 6,881 |
Additions for tax positions of prior years | 0 | 230 | 2,339 |
Reductions for tax positions of prior years | 0 | (407) | 0 |
Reductions for audit settlements | 0 | (2,207) | 0 |
Reductions resulting from a lapse of the applicable statute of limitations periods | (6,807) | (5,413) | (4,702) |
Balance at end of year | $ 45,136 | $ 41,639 | $ 37,737 |
Income Taxes - Balances of Unre
Income Taxes - Balances of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Unrecognized tax benefits | $ 45,136 | $ 41,639 | $ 37,737 | $ 33,219 |
Portion that, if recognized, would reduce tax expense and effective tax rate | 42,650 | |||
Accrued interest on unrecognized tax benefits | 4,903 | |||
Accrued penalties on unrecognized tax benefits | 1,085 | |||
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 | |||
Portion that, if recognized, would reduce tax expense and effective tax rate | 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 | 8,932 | |||
Portion that, if recognized, would reduce tax expense and effective tax rate | $ 8,660 |
Equity - Treasury Stock (Detail
Equity - Treasury Stock (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 23, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Value of treasury stock acquired, cost method | $ (350) | $ (127,747) | $ (63,988) | |
Repurchase of common stock | (350) | $ (127,762) | $ (66,687) | |
2023 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Aggregate authorized amount of common stock to be repurchased | $ 500,000 | |||
Remaining authorized share repurchase amount under repurchase program | $ 499,700 | |||
Common Stock Withheld for Settlement of Employee Tax Liabilities | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury stock acquired (in shares) | 0.7 | 0.7 | 0.8 | |
Value of treasury stock acquired, cost method | $ (119,100) | $ (82,900) | $ (65,300) |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||
Shares | 2 | 1,061 | 721 |
Amount | $ 350 | $ 127,747 | $ 63,988 |
Equity - Non-controlling Intere
Equity - Non-controlling Interests (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Non-controlling interests | $ 11,114 | $ 15,355 |
VIE | ||
Variable Interest Entity [Line Items] | ||
Non-controlling interests | 11,100 | 15,400 |
Net assets | $ 21,200 | $ 29,300 |
Equity - Dividends (Details)
Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||||||||||
Dec. 05, 2023 | Aug. 30, 2023 | May 23, 2023 | Mar. 29, 2023 | Dec. 13, 2022 | Aug. 31, 2022 | May 27, 2022 | Mar. 31, 2022 | Dec. 01, 2021 | Aug. 27, 2021 | May 27, 2021 | Mar. 25, 2021 | Dec. 11, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||||||||||||||||
Dividends declared per share (in dollars per share) | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.33 | $ 0.29 | $ 0.25 |
Dividends declared | $ 13,412 | $ 12,430 | $ 11,893 | $ 12,100 | $ 11,756 | $ 10,322 | $ 10,283 | $ 10,459 | $ 10,363 | $ 8,638 | $ 8,650 | $ 8,429 | $ 8,933 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Incentive Plans (Details) - shares shares in Millions | Dec. 31, 2023 | May 31, 2022 |
Omnibus Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate number of shares of common stock that may be issued | 2.5 | 9.6 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock and RSUs to be Settled in Common Stock | |||
RSUs | |||
Unvested, shares, beginning of period (in shares) | 3,263 | 3,880 | 3,869 |
Granted (in shares) | 684 | 860 | 1,642 |
Vested, shares (in shares) | (1,268) | (1,319) | (1,476) |
Forfeited, shares (in shares) | (131) | (158) | (155) |
Unvested, shares, end of period (in shares) | 2,548 | 3,263 | 3,880 |
Weighted Average Grant Date Fair Value (Per Unit) | |||
Unvested, weighted average grant date fair value, beginning of period (in usd per share) | $ 78.74 | $ 61.64 | $ 37.57 |
Weighted average grant date fair value (in dollars per share) | 161.81 | 113.07 | 94.83 |
Vested, weighted average grant date fair value (in usd per share) | 68.06 | 50.60 | 37.03 |
Forfeited, weighted average grant date fair value (in usd per share) | 116.29 | 84.94 | 48.52 |
Unvested, weighted average grant date fair value, end of period (in usd per share) | $ 104.76 | $ 78.74 | $ 61.64 |
PSUs | |||
RSUs | |||
Unvested, shares, beginning of period (in shares) | 733 | 931 | 1,047 |
Granted (in shares) | 177 | 153 | 174 |
Vested, shares (in shares) | (413) | (334) | (268) |
Forfeited, shares (in shares) | (6) | (17) | (22) |
Unvested, shares, end of period (in shares) | 491 | 733 | 931 |
Weighted Average Grant Date Fair Value (Per Unit) | |||
Unvested, weighted average grant date fair value, beginning of period (in usd per share) | $ 65.39 | $ 47.27 | $ 37.65 |
Weighted average grant date fair value (in dollars per share) | 174.50 | 119.74 | 90.44 |
Vested, weighted average grant date fair value (in usd per share) | 35.12 | 40.15 | 38.28 |
Forfeited, weighted average grant date fair value (in usd per share) | 101.66 | 58.79 | 41.86 |
Unvested, weighted average grant date fair value, end of period (in usd per share) | $ 129.70 | $ 65.39 | $ 47.27 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash stock compensation expense | $ 126,762 | $ 105,600 | $ 88,259 |
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 | 208,000 | 152,500 | 125,700 |
Non-cash stock compensation expense | 94,500 | $ 84,000 | $ 67,300 |
Unrecognized compensation cost, related to unvested restricted stock, total | $ 148,100 | ||
Expected weighted average period to recognize compensation cost on RSUs to be settled in common stock (in years) | 3 years 3 months |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash stock compensation expense | $ 126,762 | $ 105,600 | $ 88,259 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash stock compensation expense | 32,300 | $ 21,600 | $ 21,000 |
Unrecognized compensation cost, related to unvested restricted stock, total | $ 28,700 | ||
Expected weighted average period to recognize compensation cost on RSUs to be settled in common stock (in years) | 1 year 8 months 12 days | ||
Number of common shares issued in connection with performance units (in shares) | 0.7 | 0.7 | 0.5 |
Fair value of vested restricted stock | $ 115,500 | $ 72,400 | $ 45,200 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 09, 2023 | Mar. 02, 2022 | Mar. 25, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Valuation date price based on March 9, 2023, March 2, 2022 and March 25, 2021 closing stock prices of Quanta common stock (in usd per share) | $ 160.55 | $ 110.24 | $ 83.48 | |||
Expected volatility | 35% | 39% | 36% | |||
Risk-free interest rate | 4.62% | 1.64% | 0.26% | |||
Term in years | 2 years 9 months 21 days | 2 years 9 months 29 days | 2 years 9 months 7 days |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Percent of employees covered by collective bargaining agreements | 32% | |||
Contributions | $ 149,764,000 | $ 167,399,000 | $ 132,996,000 | |
Percentage of contribution by employer of each employee's contribution up to 3% | 100% | |||
Percentage of contribution by employer of each employee who contributes between 3% and 6% | 50% | |||
Contributions to Quanta 401(k) Plan | $ 75,900,000 | 61,700,000 | 50,700,000 | |
Contributions to the deferred compensation plans | 1,800,000 | 1,500,000 | 1,400,000 | |
Discretionary contributions | 0 | 0 | 0 | |
Deferred compensation obligations included in other long-term liabilities | $ 88,900,000 | $ 88,900,000 | $ 67,400,000 | |
Deferred compensation arrangement with individual, common stock reserved for future issuance (in shares) | 174,079 | 174,079 | 252,026 | |
Investments in company-owned life insurance policies | $ 83,400,000 | $ 83,400,000 | $ 64,000,000 | |
Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Percentage of employee contribution, lower range | 3% | |||
Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Percentage of employee contribution, lower range | 6% | |||
Multiemployer Defined Contribution and Other Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Contributions | $ 254,700,000 | $ 234,300,000 | $ 213,400,000 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Multiemployer Plans [Line Items] | |||
Contributions | $ 149,764 | $ 167,399 | $ 132,996 |
National Electrical Benefit Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 47,126 | 47,390 | 38,195 |
Excavators Union Local 731 Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 11,411 | 20,733 | 16,202 |
Central Pension Fund of the IUOE & Participating Employers | |||
Multiemployer Plans [Line Items] | |||
Contributions | 7,396 | 11,989 | 11,237 |
Eighth District Electrical Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 6,169 | 5,119 | 1,599 |
Laborers Pension Trust Fund for Northern California | |||
Multiemployer Plans [Line Items] | |||
Contributions | 3,342 | 4,849 | 4,479 |
Operating Engineers Local 324 Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 3,193 | 2,951 | 2,789 |
Pipeline Industry Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,733 | 2,477 | 5,081 |
Construction Laborers Pension Trust Fund for Southern California | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,729 | 1,355 | 893 |
Locals 302 & 612 of the IUOE - Employers Construction Industry Retirement Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,707 | 1,675 | 2,084 |
Central Laborers Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,342 | 739 | 470 |
Local 697 I.B.E.W. and Electrical Industry Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,227 | 2,509 | 2,229 |
Pension Trust Fund for Operating Engineers | |||
Multiemployer Plans [Line Items] | |||
Contributions | 2,176 | 1,898 | 1,755 |
IBEW Local 1249 Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Contributions | 1,931 | 4,558 | 2,667 |
Operating Engineers Pension Trust | |||
Multiemployer Plans [Line Items] | |||
Contributions | 1,473 | 1,360 | 1,143 |
Employer - Teamsters Local Nos 175 & 505 Pension Trust Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 1,027 | 52 | 151 |
Laborers National Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 746 | 667 | 1,049 |
Laborers District Council of W PA Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions | 488 | 110 | 1,375 |
All other plans - U.S. | |||
Multiemployer Plans [Line Items] | |||
Contributions | 38,033 | 37,723 | 36,804 |
All other plans - Canada | |||
Multiemployer Plans [Line Items] | |||
Contributions | $ 12,515 | $ 19,245 | $ 2,794 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in FMV of COLI Assets and Deferred Compensation Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
(Loss) gain included in Selling, general and administrative expenses | $ (13,325) | $ 13,192 | $ (10,428) |
Other income (expense), net | $ 11,587 | $ (13,757) | $ 8,566 |
Commitments and Contingencies -
Commitments and Contingencies - Legal Proceedings (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | 24 Months Ended | 52 Months Ended | |||||
Jan. 31, 2023 | Dec. 31, 2022 | Aug. 31, 2022 | Jun. 30, 2019 | Dec. 31, 2022 | Dec. 31, 2015 | Dec. 31, 2020 | Apr. 30, 2019 | Dec. 31, 2023 | May 31, 2019 | |
Loss Contingencies [Line Items] | ||||||||||
Insurance and other non-current liabilities | $ 567,519 | $ 567,519 | $ 636,250 | |||||||
Lorenzo Benton v Telecom Network Specialists Inc | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages awarded | $ 17,300 | $ 9,500 | ||||||||
Redes | Termination of the Peru Telecommunications Project | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Advance payments received | $ 87,000 | $ 87,000 | ||||||||
On-demand performance bonds | $ 25,000 | |||||||||
Construction costs incurred | 157,000 | |||||||||
Payments received on construction contracts | $ 100,000 | |||||||||
Payment of arbitration | $ 190,000 | |||||||||
Amount awarded in arbitration | $ 177,000 | |||||||||
Insurance recoveries | $ 6,700 | $ 100,500 | ||||||||
Recorded charges | $ 79,200 | |||||||||
Net receivable position on projects | $ 120,000 | |||||||||
Redes | Insurance Recoveries | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Insurance and other non-current liabilities | $ 107,200 | |||||||||
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 |
Commitments and Contingencies_2
Commitments and Contingencies - Silverado Wildfire Matter (Details) - Silverado Wildfire - a | 1 Months Ended | |
Mar. 31, 2019 | Oct. 31, 2020 | |
Loss Contingencies [Line Items] | ||
Damaged land (in acres) | 13,000 | |
Time of pole replacement before fire | 19 months |
Commitments and Contingencies_3
Commitments and Contingencies - Insurance (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitment And Contingencies [Line Items] | ||
Insurance and other non-current liabilities | $ 636,250 | $ 567,519 |
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 | 351,700 | 319,600 |
Insurance and other non-current liabilities | 229,200 | 209,800 |
Related insurance recoveries/receivables | 4,900 | 5,800 |
Related insurance recoveries/receivables included in prepaid expenses and other current assets | 300 | 300 |
Related insurance recoveries/receivables included in other assets | $ 4,600 | $ 5,500 |
Commitments and Contingencies_4
Commitments and Contingencies - Performance Bonds and Parent Guarantees (Details) - Performance Guarantee $ in Billions | Dec. 31, 2023 USD ($) |
Loss Contingencies [Line Items] | |
Total amount of outstanding performance bonds | $ 7.7 |
Estimate | |
Loss Contingencies [Line Items] | |
Estimated cost to complete bonded projects | $ 2.7 |
Commitments and Contingencies_5
Commitments and Contingencies - Committed Expenditures (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Outstanding capital commitments due after next twelve months | $ 61.2 |
Committed Capital Primarily Fleet | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Estimated committed capital in next fiscal year | $ 148.3 |
Detail of Certain Accounts - Ca
Detail of Certain Accounts - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 1,290,248 | $ 428,505 | $ 229,097 | $ 184,620 |
Cash equivalents | 610,800 | 260,100 | ||
Held by Domestic Joint Ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 41,427 | 14,291 | ||
Held by Foreign Joint Ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 10,968 | 6,277 | ||
Held by Joint Ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 52,395 | 20,568 | ||
Captive Insurance Company | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 19,088 | 35,085 | ||
Not Held by Joint Ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 1,218,765 | $ 372,852 |
Detail of Certain Accounts - Pr
Detail of Certain Accounts - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Finance lease assets and lease financing transactions | $ 165,923 | $ 101,385 | |
Property and equipment, gross | 4,158,353 | 3,681,377 | |
Less — Accumulated depreciation and amortization | (1,821,410) | (1,650,913) | |
Property and equipment, net of accumulated depreciation | 2,336,943 | 2,030,464 | |
Depreciation | 324,786 | 290,647 | $ 255,529 |
Non-US | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 245,700 | 298,000 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 102,839 | 90,715 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 456,004 | $ 396,003 | |
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 | $ 3,069,882 | $ 2,726,546 | |
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 | $ 290,687 | $ 282,282 | |
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 | $ 73,018 | $ 84,446 | |
Finance lease assets and lease financing transactions | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | 5 years | |
Finance lease assets and lease financing transactions | 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, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable, trade | $ 2,027,588 | $ 1,302,086 |
Accrued compensation and related expenses | 526,221 | 469,048 |
Other accrued expenses | 507,433 | 381,995 |
Accounts payable and accrued expenses | $ 3,061,242 | $ 2,153,129 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 1,290,248 | $ 428,505 | $ 229,097 | $ 184,620 |
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows | 1,295,041 | 433,214 | 231,887 | 186,808 |
Prepaid Expenses and Other Current Assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash included in “Prepaid expenses and other current assets” | 3,652 | 3,759 | 1,836 | 1,275 |
Other Assets, Net | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash included in “Prepaid expenses and other current assets” | $ 1,141 | $ 950 | $ 954 | $ 913 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows used by operating leases | $ (95,900) | $ (95,175) | $ (104,434) |
Operating cash flows used by finance leases | (1,463) | (108) | (90) |
Financing cash flows used by finance leases | (2,511) | (1,457) | (1,001) |
Lease assets obtained in exchange for lease liabilities: | |||
Operating leases | 100,594 | 77,826 | 73,713 |
Finance leases | 37,299 | 2,331 | 1,044 |
Lease financing transaction assets obtained in exchange for lease financing transaction liabilities | $ 26,969 | $ 35,144 | $ 11,713 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Additional Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest paid | $ (175,782) | $ (106,052) | $ (52,737) |
Income taxes paid | (248,527) | (111,569) | (125,328) |
Income tax refunds | $ 6,483 | $ 8,281 | $ 13,257 |
Supplemental Cash Flow Inform_6
Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accrued capital expenditures | $ 15.7 | $ 13.4 | $ 27.4 |