Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 29, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $0.00001 par value | |
Trading Symbol | PWR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 146,388,455 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001050915 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 531,056 | $ 1,290,248 |
Accounts receivable, net | 4,094,914 | 4,410,829 |
Contract assets | 1,274,686 | 1,413,057 |
Inventories | 224,341 | 175,658 |
Prepaid expenses and other current assets | 458,472 | 387,105 |
Total current assets | 6,583,469 | 7,676,897 |
Property and equipment, net | 2,427,131 | 2,336,943 |
Operating lease right-of-use assets | 269,925 | 249,443 |
Other assets, net | 569,708 | 565,625 |
Other intangible assets, net | 1,408,315 | 1,362,412 |
Goodwill | 4,283,804 | 4,045,905 |
Total assets | 15,542,352 | 16,237,225 |
Current Liabilities: | ||
Current maturities of long-term debt | 546,543 | 535,202 |
Current portion of operating lease liabilities | 83,968 | 77,995 |
Accounts payable and accrued expenses | 2,757,546 | 3,061,242 |
Contract liabilities | 1,443,125 | 1,538,677 |
Total current liabilities | 4,831,182 | 5,213,116 |
Long-term debt, net of current maturities | 3,174,181 | 3,663,504 |
Operating lease liabilities, net of current portion | 201,771 | 186,996 |
Deferred income taxes | 298,137 | 254,004 |
Insurance and other non-current liabilities | 669,812 | 636,250 |
Total liabilities | 9,175,083 | 9,953,870 |
Commitments and Contingencies | ||
Equity: | ||
Common stock, $0.00001 par value, 600,000,000 shares authorized, 175,144,784 and 173,949,011 shares issued, and 146,384,210 and 145,508,549 shares outstanding | 2 | 2 |
Additional paid-in capital | 3,090,242 | 3,002,652 |
Retained earnings | 4,962,949 | 4,858,066 |
Accumulated other comprehensive loss | (313,685) | (282,945) |
Treasury stock, 28,760,574 and 28,440,462 common shares | (1,382,885) | (1,305,534) |
Total stockholders’ equity | 6,356,623 | 6,272,241 |
Non-controlling interests | 10,646 | 11,114 |
Total equity | 6,367,269 | 6,283,355 |
Total liabilities and equity | $ 15,542,352 | $ 16,237,225 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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) | 175,144,784 | 173,949,011 |
Common stock, shares outstanding (in shares) | 146,384,210 | 145,508,549 |
Treasury stock, common shares (in shares) | 28,760,574 | 28,440,462 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenues | $ 5,031,819 | $ 4,428,826 |
Cost of services | 4,408,325 | 3,855,631 |
Gross profit | 623,494 | 573,195 |
Equity in earnings of integral unconsolidated affiliates | 12,334 | 9,620 |
Selling, general and administrative expenses | (402,340) | (384,552) |
Amortization of intangible assets | (77,511) | (72,403) |
Change in fair value of contingent consideration liabilities | (623) | 0 |
Operating income | 155,354 | 125,860 |
Interest and other financing expenses | (41,072) | (41,693) |
Interest income | 8,023 | 1,516 |
Other income, net | 24,882 | 7,866 |
Income before income taxes | 147,187 | 93,549 |
Provision for (benefit from) income taxes | 21,096 | (3,421) |
Net income | 126,091 | 96,970 |
Less: Net income attributable to non-controlling interests | 7,731 | 1,924 |
Net income attributable to common stock | $ 118,360 | $ 95,046 |
Earnings per share attributable to common stock: | ||
Basic (in dollars per share) | $ 0.81 | $ 0.66 |
Diluted (in dollars per share) | $ 0.79 | $ 0.64 |
Shares used in computing earnings per share: | ||
Weighted average basic shares outstanding (in shares) | 145,936 | 144,467 |
Weighted average diluted shares outstanding (in shares) | 149,350 | 148,661 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 126,091 | $ 96,970 |
Other comprehensive (loss) income, net of taxes: | ||
Foreign currency translation adjustment (loss) income | (30,740) | 309 |
Other income | 0 | 791 |
Other comprehensive (loss) income, net of taxes | (30,740) | 1,100 |
Comprehensive income | 95,351 | 98,070 |
Less: Comprehensive income attributable to non-controlling interests | 7,731 | 1,924 |
Comprehensive income attributable to common stock | $ 87,620 | $ 96,146 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows from Operating Activities: | ||
Net income | $ 126,091 | $ 96,970 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 88,895 | 78,382 |
Amortization of intangible assets | 77,511 | 72,403 |
Distributions, net of equity in earnings of unconsolidated affiliates | 4,264 | 18,452 |
Deferred income tax benefit | (4,765) | (11,997) |
Non-cash stock-based compensation | 35,331 | 27,451 |
Other non-cash adjustments, net | (7,970) | 4,076 |
Changes in assets and liabilities, net of non-cash transactions: | ||
Accounts and notes receivable | 321,914 | 27,874 |
Contract assets | 119,324 | (206,812) |
Prepaid expenses and other current assets | (46,977) | (29,227) |
Accounts payable and accrued expenses and other non-current liabilities | (349,872) | (33,618) |
Contract liabilities | (89,702) | 320 |
Other assets and liabilities, net | (36,089) | (5,865) |
Net cash provided by operating activities | 237,955 | 38,409 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (83,139) | (80,319) |
Proceeds from sale of and insurance settlements related to property and equipment | 26,418 | 10,751 |
Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired | (384,071) | (452,252) |
Proceeds from the sale or settlement of certain investments | 26,571 | 39,069 |
Other, net | 27,613 | (5,873) |
Net cash used in investing activities | (386,608) | (488,624) |
Cash Flows from Financing Activities: | ||
Borrowings under credit facility and commercial paper program | 2,763,700 | 4,431,075 |
Payments under credit facility and commercial paper program | (3,268,156) | (4,050,437) |
Payments related to tax withholding for share-based compensation | (75,710) | (108,689) |
Payments of dividends | (13,745) | (12,817) |
Other, net | (9,133) | (16,445) |
Net cash (used in) provided by financing activities | (603,044) | 242,687 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (9,963) | (1,562) |
Net decrease in cash, cash equivalents and restricted cash | (761,660) | (209,090) |
Cash, cash equivalents and restricted cash, beginning of period | 1,295,041 | 433,214 |
Cash, cash equivalents and restricted cash, end of period | $ 533,381 | $ 224,124 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders' Equity | Non-controlling Interests |
Balance (in shares) at Dec. 31, 2022 | 142,930,598 | |||||||
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) | 1,100 | 1,100 | 1,100 | |||||
Acquisitions (in shares) | 1,018,946 | |||||||
Acquisitions | 123,503 | 123,503 | 123,503 | |||||
Stock-based compensation activity (in shares) | 1,210,615 | |||||||
Stock-based compensation activity | (77,597) | 26,650 | (104,247) | (77,597) | ||||
Dividends declared | (12,100) | (12,100) | (12,100) | |||||
Distributions to non-controlling interests | (8,741) | (8,741) | ||||||
Net income | 96,970 | 95,046 | 95,046 | 1,924 | ||||
Balance (in shares) at Mar. 31, 2023 | 145,160,159 | |||||||
Balance at Mar. 31, 2023 | 5,521,954 | $ 2 | 2,869,141 | 4,246,158 | (309,577) | (1,292,308) | 5,513,416 | 8,538 |
Balance (in shares) at Dec. 31, 2022 | 142,930,598 | |||||||
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 |
Balance (in shares) at Dec. 31, 2023 | 145,508,549 | 145,508,549 | ||||||
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Other comprehensive income (loss) | (30,740) | (30,740) | (30,740) | |||||
Acquisitions (in shares) | 250,539 | |||||||
Acquisitions | 51,768 | 51,768 | 51,768 | |||||
Stock-based compensation activity (in shares) | 625,122 | |||||||
Stock-based compensation activity | (41,529) | 35,822 | (77,351) | (41,529) | ||||
Dividends declared | (13,477) | (13,477) | (13,477) | |||||
Distributions to non-controlling interests | (8,199) | (8,199) | ||||||
Net income | $ 126,091 | 118,360 | 118,360 | 7,731 | ||||
Balance (in shares) at Mar. 31, 2024 | 146,384,210 | 146,384,210 | ||||||
Balance at Mar. 31, 2024 | $ 6,367,269 | $ 2 | $ 3,090,242 | $ 4,962,949 | $ (313,685) | $ (1,382,885) | $ 6,356,623 | $ 10,646 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | ||||||
Mar. 28, 2024 | Dec. 05, 2023 | Aug. 30, 2023 | May 23, 2023 | Mar. 29, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | |||||||
Cash dividends declared (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.09 | $ 0.08 |
Business and Organization, Basi
Business and Organization, Basis of Presentation and Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization, Basis of Presentation and Accounting Policies | 1. BUSINESS AND ORGANIZATION, BASIS OF PRESENTATION AND ACCOUNTING POLICIES: 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. These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP), have been condensed or omitted pursuant to those rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Quanta’s Annual Report on Form 10-K for the year ended December 31, 2023. Quanta believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income and cash flows with respect to the interim condensed consolidated financial statements have been included. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | 2. NEW ACCOUNTING PRONOUNCEMENTS: Recently Adopted Guidance 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. New Accounting Pronouncements and Disclosure Rules Not Yet Adopted In March 2024, the U.S. Securities and Exchange Commission (SEC) issued its final climate disclosure rule (the Final Rule) that requires public entities to disclose certain material climate-related information in annual reports and registration statements, including disclosure of material impacts as a result of severe weather events and other natural conditions and material Scope 1 and Scope 2 greenhouse gas emissions. Disclosures will be required prospectively, with information for prior periods required only to the extent the information was disclosed in a prior SEC filing. Certain requirements of the Final Rule are effective for fiscal years beginning on or after January 1, 2025, with phase-in periods for additional requirements. However, on April 4, 2024, the SEC issued a stay pending judicial review of the Final Rule in U.S. federal court. Quanta is currently assessing the effect of the Final Rule. 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 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. 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. |
Revenue Recognition and Related
Revenue Recognition and Related Balance Sheet Accounts | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Related Balance Sheet Accounts | 3. REVENUE RECOGNITION AND RELATED BALANCE SHEET ACCOUNTS: Contracts Quanta’s 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: unit-price contracts, cost-plus contracts and fixed price contracts. The following tables present Quanta’s revenue disaggregated by contract type and by geographic location, as determined by the job location (in thousands): Three Months Ended March 31, 2024 2023 By contract type: Fixed price contracts $ 2,672,315 53.1 % $ 1,934,888 43.7 % Unit-price contracts 1,427,507 28.4 1,497,394 33.8 Cost-plus contracts 931,997 18.5 996,544 22.5 Total revenues $ 5,031,819 100.0 % $ 4,428,826 100.0 % Three Months Ended March 31, 2024 2023 By primary geographic location: United States $ 4,569,716 90.8 % $ 3,666,365 82.8 % Canada 229,427 4.6 542,360 12.2 Australia 146,029 2.9 154,677 3.5 Others 86,647 1.7 65,424 1.5 Total revenues $ 5,031,819 100.0 % $ 4,428,826 100.0 % Under fixed-price contracts, as well as unit-price contracts with more than an insignificant amount of partially completed units, revenue is recognized as performance obligations are satisfied over time, with the percentage of completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation. Approximately 57.5% and 50.1% of Quanta’s revenues recognized during the three months ended March 31, 2024 and 2023 were associated with this revenue recognition method. Performance Obligations As of March 31, 2024 and December 31, 2023, the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations was approximately $14.88 billion and $13.89 billion, with 64.6% and 66.9% expected to be recognized in the subsequent twelve months. These amounts represent management’s estimates of the consolidated revenues that are expected to be realized from the remaining portion of firm orders under fixed price contracts not yet completed or for which work had not yet begun as of such dates. For purposes of calculating remaining performance obligations, Quanta includes all estimated revenues attributable to consolidated joint ventures and variable interest entities, revenues from funded and unfunded portions of government contracts to the extent they are reasonably expected to be realized, and revenues from change orders and claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations are potential orders under MSAs and expected revenues under certain non-fixed price contracts. 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, or supply chain and logistical challenges related to, 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. 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 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. As of March 31, 2024 and December 31, 2023, Quanta had recognized revenues of $774.8 million and $778.9 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 March 31, 2024 and December 31, 2023 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 2023, additional costs arose from residual impacts associated with the aforementioned items, as well as work resequencing and acceleration, access delays, and logistical challenges and other issues outside of Quanta’s control. As of March 31, 2024, the project was substantially completed. 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 0.1% during each of the three months ended March 31, 2024 and 2023 as a result of changes in estimates associated with performance obligations on fixed price contracts partially satisfied prior to December 31, 2023 and 2022. Operating results for the three months ended March 31, 2024 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, 2023. However, gross profit was negatively impacted by $21.9 million as a result of decreased productivity associated with a large solar facility project in the United States. Operating results for the three months ended March 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. There were no material changes in estimates on any individual project. Contract Assets and Liabilities Contract assets and liabilities consisted of the following (in thousands): March 31, 2024 December 31, 2023 Contract assets $ 1,274,686 $ 1,413,057 Contract liabilities $ 1,443,125 $ 1,538,677 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 decrease in contract assets from December 31, 2023 to March 31, 2024 was primarily due to the completion of certain large projects and the corresponding billing of amounts previously recorded as contract assets, while the decrease in contract liabilities was primarily due to higher production on a large renewable transmission project and the associated recognition of revenue on amounts that were previously recorded as contract liabilities. During the three months ended March 31, 2024 and 2023, Quanta recognized revenue of approximately $952.6 million and $641.1 million related to contract liabilities outstanding as of the end of each respective 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 with respect to Quanta’s 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 risk pools for the purpose of calculating its historical credit loss experience. Quanta’s historical loss ratio and its determination of risk pools, which are used to calculate expected credit losses, may be adjusted for changes in customer credit concentrations within its portfolio of financial assets, changes in 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 the 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): Three Months Ended March 31, 2024 2023 Balance at beginning of period $ 13,962 $ 15,644 Increase in provision for credit losses 271 2,358 Write-offs charged against the allowance net of recoveries of amounts previously written off (278) (1,472) Balance at end of period $ 13,955 $ 16,530 The above activity relates to the largest risk pool Quanta utilizes for assessing credit loss. The second risk pool represents approximately 12% of Quanta’s consolidated financial instruments as of March 31, 2024 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 risk 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. Quanta is subject to concentrations of credit risk related primarily to its receivable position for services Quanta has performed for customers. Quanta grants credit under normal payment terms, generally without collateral. As of March 31, 2024 and December 31, 2023, one customer within the Renewable Energy Infrastructure Solutions segment associated with the large renewable transmission project in Canada described above represented 10% of Quanta’s consolidated receivable position, which includes amounts related to contracts assets. No customer represented 10% or more of Quanta’s consolidated revenues for the three months ended March 31, 2024 or 2023. 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 March 31, 2024 and December 31, 2023 were $624.2 million and $610.0 million, which are included in “Accounts receivable.” Retainage balances with expected settlement dates beyond one year were $88.4 million and $78.7 million as of March 31, 2024 and December 31, 2023 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 March 31, 2024 and December 31, 2023, unbilled receivables included in “Accounts receivable” were $794.3 million and $743.6 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 $66.7 million and $58.6 million as of March 31, 2024 and December 31, 2023. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | 4. SEGMENT INFORMATION: Quanta reports its results under three reportable segments described below: • Electric Power Infrastructure Solutions (Electric Power) . Quanta’s Electric Power segment provides comprehensive infrastructure solutions to customers in the electric power and communications markets. • Renewable Energy Infrastructure Solutions (Renewable Energy). Quanta’s Renewable Energy segment provides comprehensive infrastructure solutions to customers that are involved in the renewable energy industry. • Underground Utility and Infrastructure Solutions (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. 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. 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 three months ended March 31, 2024 and 2023. Operating margin is calculated by dividing operating income (loss) by revenues. The following table shows dollars in thousands: Three Months Ended March 31, 2024 2023 Revenues: Electric Power $ 2,326,960 46.2 % $ 2,336,037 52.7 % Renewable Energy 1,584,164 31.5 1,008,300 22.8 Underground and Infrastructure 1,120,695 22.3 1,084,489 24.5 Consolidated revenues $ 5,031,819 100.0 % $ 4,428,826 100.0 % Operating income (loss) : Electric Power (1) $ 228,025 9.8 % $ 215,149 9.2 % Renewable Energy 74,846 4.7 % 35,656 3.5 % Underground and Infrastructure 46,888 4.2 % 61,573 5.7 % Corporate and Non-Allocated Costs (2) (194,405) (3.9) % (186,518) (4.2) % Consolidated operating income $ 155,354 3.1 % $ 125,860 2.8 % (1) Includes equity in earnings of integral unconsolidated affiliates of $12.3 million and $9.6 million for the three months ended March 31, 2024 and 2023, primarily related to Quanta’s equity interest in LUMA Energy, LLC (LUMA). (2) Includes amortization expense of $77.5 million and $72.4 million and non-cash stock-based compensation of $35.3 million and $27.5 million for the three months ended March 31, 2024 and 2023. 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 three months ended March 31, 2024 and 2023. The table shows dollars in thousands: Three Months Ended March 31, 2024 2023 Depreciation: Electric Power $ 40,447 $ 42,085 Renewable Energy 17,795 10,858 Underground and Infrastructure 24,986 20,500 Corporate and Non-Allocated Costs 5,667 4,939 Consolidated depreciation $ 88,895 $ 78,382 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 5. ACQUISITIONS: The results of operations of acquired businesses have been included in Quanta’s consolidated financial statements since their respective acquisition dates. In April 2024, Quanta acquired a business located in the United States that manufactures transmission and distribution equipment for the electric utility industry. The aggregate consideration paid or payable for this transaction was approximately $72 million, consisting of a combination of cash and shares of Quanta common stock. The final amount of consideration also remains subject to certain post-closing adjustments, including with respect to net working capital. During the three months ended March 31, 2024, Quanta acquired three businesses located in the United States, including: a business that provides specialty environmental solutions to industrial and petrochemical companies (primarily included in the Underground and Infrastructure segment); a business that specializes in testing, manufacturing and distributing safety equipment and supplies (primarily included in the Electric Power and Renewable Energy segments); and a business that specializes in electrical infrastructure services for substations, data centers and governmental entities (primarily included in the Electric Power segment). The consideration for the businesses acquired during the three months ended March 31, 2024 consisted of approximately $382.9 million paid or payable in cash on the acquisition dates and 250,539 shares of Quanta common stock, which had a fair value of $51.8 million as of the acquisition dates. The final amount of consideration for these acquisitions remains subject to certain post-closing adjustments, including with respect to net working capital. 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 $785.7 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. 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 Quanta is finalizing its purchase price allocations related to certain businesses acquired subsequent to March 31, 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 aggregate consideration paid or payable for businesses acquired between March 31, 2023 and March 31, 2024 was allocated to acquired assets and assumed liabilities, which resulted in an allocation of $194.2 million to net tangible assets, $207.8 million to identifiable intangible assets and $403.4 million to goodwill. 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 March 31, 2024 for acquisitions completed in the three months ended March 31, 2024 (in thousands): Three Months Ended March 31, 2024 Consideration: Cash paid or payable $ 382,929 Value of Quanta common stock issued 51,768 Contingent consideration 14,463 Fair value of total consideration transferred or estimated to be transferred $ 449,160 Cash and cash equivalents $ 8,453 Accounts receivable 50,845 Contract assets 162 Inventories 14,127 Prepaid expenses and other current assets 12,176 Property and equipment 92,676 Operating lease right-of-use assets 15,532 Other assets 456 Identifiable intangible assets 122,301 Current maturities of long-term debt (4,431) Current portion of operating lease liabilities (4,134) Accounts payable and accrued liabilities (51,325) Contract liabilities (390) Long-term debt, net of current maturities (4,436) Operating lease liabilities, net of current portion (11,398) Deferred income taxes (42,363) Total identifiable net assets 198,251 Goodwill 250,909 Fair value of net assets acquired $ 449,160 As of March 31, 2024, approximately $10.6 million of goodwill is expected to be deductible for income tax purposes related to acquisitions completed in the three months ended March 31, 2024. The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in the three months ended March 31, 2024 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). Three Months Ended March 31, 2024 Estimated Fair Value Weighted Average Amortization Period in Years Customer relationships $ 102,106 6.7 Backlog 4,495 1.7 Trade names 14,456 15.0 Non-compete agreements 1,244 5.0 Total intangible assets subject to amortization $ 122,301 7.5 The significant estimates used by management in determining the fair values of customer relationship intangible assets include future revenues, discount rates and customer attrition rates. The following table includes the discount rates and customer attrition rates used to determine the fair value of customer relationship intangible assets for businesses acquired during the three months ended March 31, 2024 as of the respective acquisition dates: Three Months Ended March 31, 2024 Range Weighted Average Discount rates 15% to 22% 15% Customer attrition rates 10% to 23% 12% 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 was $172.0 million and $157.1 million as of March 31, 2024 and December 31, 2023, and such amounts are included in “Insurance and other non-current liabilities.” Quanta’s aggregate contingent consideration liabilities can change due to additional business acquisitions, settlement of outstanding liabilities, accretion in present value, changes in estimated fair value, 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 for contingent consideration liabilities incorporate significant inputs not observable in the market, including revenue forecasts, operating margins, discount rates and the probability of acquired businesses achieving certain performance targets during designated post-acquisition periods. Accordingly, the level of inputs used for these fair value measurements is Level 3. All of Quanta’s outstanding contingent consideration liabilities are subject to a maximum payment amount, and the aggregate maximum payment amount of these liabilities totaled $352.6 million as of March 31, 2024. During the three months ended March 31, 2023, Quanta settled certain contingent consideration liabilities with cash payments of $5.0 million. Pro Forma Results of Operations The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in the three months ended March 31, 2024 and the year ended December 31, 2023, 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). Three Months Ended March 31, 2024 2023 Revenues $ 5,033,522 $ 4,535,366 Net income attributable to common stock $ 118,213 $ 86,670 The pro forma combined results of operations for the three months ended March 31, 2024 and 2023 were prepared by adjusting the historical results of Quanta to include the historical results of the businesses acquired in 2024 as if such acquisitions had occurred January 1, 2023. The pro forma combined results of operations for the three months ended March 31, 2023 were prepared by further adjusting the historical results of Quanta to include the historical results of the business acquired in 2023 as if such acquisition had occurred January 1, 2022. These pro forma combined historical results were adjusted for the following: a reduction of interest and other financing expenses as a result of the repayment of outstanding indebtedness of the acquired businesses; an increase in interest and other financing expenses as a result of the cash consideration paid; an increase in amortization expense due to the intangible assets recorded; elimination of inter-company sales; and changes in depreciation expense to adjust acquired property and equipment to the acquisition date fair value and to conform with Quanta’s accounting policies. 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. Impact on Consolidated Results of Operations Related to Acquisitions Included in Quanta’s condensed consolidated results of operations for the three months ended March 31, 2024 were revenues of $67.7 million and a loss before income taxes of $9.1 million, which included $4.8 million of amortization expense |
Investments in Affiliates and O
Investments in Affiliates and Other Entities | 3 Months Ended |
Mar. 31, 2024 | |
Investments [Abstract] | |
Investments in Affiliates and Other Entities | 6. INVESTMENTS IN AFFILIATES AND OTHER ENTITIES: Equity Investments The following table presents Quanta’s equity investments by type (in thousands): March 31, 2024 December 31, 2023 Equity method investments - integral unconsolidated affiliates $ 96,948 $ 96,124 Equity method investments - non-integral unconsolidated affiliates 9,480 28,105 Non-marketable equity securities 53,388 53,868 Total equity investments $ 159,816 $ 178,097 Equity Method Investments During the three months ended March 31, 2024, Quanta sold a non-integral equity method investment and recognized a $12.2 million gain, $4.9 million of which was attributable to non-controlling interests. Also during the three months ended March 31, 2024, Quanta received $34.9 million in cash related to the sale of this investment, $4.9 million of which was distributed to non-controlling interests. During the three months ended December 31, 2022, Quanta entered into an agreement to sell a non-integral equity method investment. 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 $58.5 million in cash related to the sale of this investment, $9.8 million of which was distributed to non-controlling interests. As of March 31, 2024 and December 31, 2023, Quanta had receivables of $81.4 million and $96.4 million from its integral unconsolidated affiliates and payables of $22.4 million and $24.5 million to its integral unconsolidated affiliates. Quanta recognized revenues of $59.0 million and $48.3 million during the three months ended March 31, 2024 and 2023 from services provided to its integral unconsolidated affiliates, primarily related to services provided to LUMA at cost. In addition, during the three months ended March 31, 2024 and 2023, Quanta recognized costs of sales of $88.9 million and $12.0 million for services provided to Quanta by other integral unconsolidated affiliates. Total equity in earnings from integral unconsolidated affiliates was $12.3 million and $9.6 million for the three months ended March 31, 2024 and 2023. Total equity in earnings from non-integral unconsolidated affiliates was earnings of $3.6 million and $1.6 million for the three months ended March 31, 2024 and 2023. As of March 31, 2024, Quanta had $45.2 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 $29.9 million and $31.4 million as of March 31, 2024 and December 31, 2023. The amortization of the basis difference included in “Equity in earnings of integral unconsolidated affiliates” in the accompanying condensed consolidated statements of operations was $1.5 million and $1.8 million for the three months ended March 31, 2024 and 2023. |
Per Share Information
Per Share Information | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Per Share Information | 7. PER SHARE INFORMATION: The amounts used to compute basic and diluted earnings per share attributable to common stock consisted of the following (in thousands): Three Months Ended March 31, 2024 2023 Amounts attributable to common stock: Net income attributable to common stock $ 118,360 $ 95,046 Weighted average shares: Weighted average shares outstanding for basic earnings per share attributable to common stock 145,936 144,467 Effect of dilutive unvested non-participating stock-based awards 3,414 4,194 Weighted average shares outstanding for diluted earnings per share attributable to common stock 149,350 148,661 |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt Obligations | 8. DEBT OBLIGATIONS: Quanta’s long-term debt obligations consisted of the following (in thousands): March 31, 2024 December 31, 2023 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) 854,364 867,137 Borrowings under commercial paper program 208,350 705,900 Lease financing transactions 126,409 102,955 Other long-term debt 6,219 6,279 Finance leases 46,373 39,577 Unamortized discount and financing costs (20,991) (23,142) Total long-term debt obligations 3,720,724 4,198,706 Less — Current maturities of long-term debt 546,543 535,202 Total long-term debt obligations, net of current maturities $ 3,174,181 $ 3,663,504 Senior Notes 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 The fair value of Quanta’s senior notes was $2.13 billion as of March 31, 2024, compared to a carrying value of $2.48 billion net of unamortized bond discount, underwriting discounts and deferred financing costs of $19.7 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. Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands): Three Months Ended March 31, 2024 2023 Maximum amount outstanding $ 867,204 $ 956,308 Average daily amount outstanding $ 841,295 $ 859,270 Weighted-average interest rate 6.80 % 5.99 % As of March 31, 2024, Quanta was in compliance with all of the financial covenants under the credit agreement. Term Loan. As of March 31, 2024, Quanta had $726.6 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. Revolving Loans. As of March 31, 2024, Quanta had $127.8 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 March 31, 2024, Quanta also had $251.2 million of letters of credit issued under the senior credit facility, of which $94.6 million were denominated in U.S. dollars and $156.6 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 March 31, 2024, $2.05 billion remained available under the senior credit facility for new revolving loans, letters of credit and support of the commercial paper program. Commercial Paper Program As of March 31, 2024, Quanta had $208.4 million of outstanding unsecured notes under its commercial paper program, with a weighted average interest rate of 5.75%. The carrying amounts of the notes issued under Quanta’s commercial paper program approximate fair value, and all notes currently have a short maturity. Borrowings under the commercial paper program and the applicable interest rates were as follows (dollars in thousands): Three Months Ended March 31, 2024 2023 Maximum amount outstanding $ 705,900 $ 747,700 Average daily amount outstanding $ 216,075 $ 494,600 Weighted-average interest rate 5.80 % 5.38 % Additional Letters of Credit As of March 31, 2024, Quanta had $488.7 million of letters of credit issued outside of its senior credit facility, which were denominated in U.S. dollars. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | 9. LEASES: Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. The components of lease costs in the accompanying condensed consolidated statements of operations are as follows (in thousands): Three Months Ended March 31, Lease cost Classification 2024 2023 Finance lease cost: Amortization of lease assets Depreciation (1) $ 2,969 $ 911 Interest on lease liabilities Interest and other financing expenses 722 208 Lease financing transactions: (2) Depreciation Depreciation (1) 2,092 2,252 Interest Interest and other financing expenses 3,498 4,299 Operating lease cost Cost of services and Selling, general and administrative expenses 25,534 23,223 Short-term and variable lease cost (3) Cost of services and Selling, general and administrative expenses 287,335 238,078 Total lease cost $ 322,150 $ 268,971 (1) Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying condensed 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. Related party lease expense was $4.7 million and $3.9 million for the three months ended March 31, 2024 and 2023. Future minimum lease payments for operating leases and finance leases were as follows (in thousands): As of March 31, 2024 Operating Leases Finance Leases Total Remainder of 2024 $ 73,023 $ 9,655 $ 82,678 2025 81,366 10,436 91,802 2026 63,052 9,428 72,480 2027 44,661 8,078 52,739 2028 26,108 7,203 33,311 Thereafter 27,077 6,029 33,106 Total future minimum payments related to operating leases and finance leases 315,287 50,829 366,116 Less imputed interest (29,548) (4,456) (34,004) Total $ 285,739 $ 46,373 $ 332,112 Future minimum lease payments for short-term leases were $26.5 million as of March 31, 2024. As of March 31, 2024, Quanta also had minimum lease payments related to operating lease obligations of $17.5 million for leases that had not yet commenced as of such date, are expected to commence in 2024 and have lease terms of one The weighted average remaining lease terms (other than for short-term leases) and discount rates were as follows: As of March 31, 2024 Weighted average remaining lease term (in years): Operating leases 4.27 Finance leases 4.96 Weighted average discount rate: Operating leases 4.5 % Finance leases 6.3 % 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 | 9. LEASES: Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. The components of lease costs in the accompanying condensed consolidated statements of operations are as follows (in thousands): Three Months Ended March 31, Lease cost Classification 2024 2023 Finance lease cost: Amortization of lease assets Depreciation (1) $ 2,969 $ 911 Interest on lease liabilities Interest and other financing expenses 722 208 Lease financing transactions: (2) Depreciation Depreciation (1) 2,092 2,252 Interest Interest and other financing expenses 3,498 4,299 Operating lease cost Cost of services and Selling, general and administrative expenses 25,534 23,223 Short-term and variable lease cost (3) Cost of services and Selling, general and administrative expenses 287,335 238,078 Total lease cost $ 322,150 $ 268,971 (1) Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying condensed 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. Related party lease expense was $4.7 million and $3.9 million for the three months ended March 31, 2024 and 2023. Future minimum lease payments for operating leases and finance leases were as follows (in thousands): As of March 31, 2024 Operating Leases Finance Leases Total Remainder of 2024 $ 73,023 $ 9,655 $ 82,678 2025 81,366 10,436 91,802 2026 63,052 9,428 72,480 2027 44,661 8,078 52,739 2028 26,108 7,203 33,311 Thereafter 27,077 6,029 33,106 Total future minimum payments related to operating leases and finance leases 315,287 50,829 366,116 Less imputed interest (29,548) (4,456) (34,004) Total $ 285,739 $ 46,373 $ 332,112 Future minimum lease payments for short-term leases were $26.5 million as of March 31, 2024. As of March 31, 2024, Quanta also had minimum lease payments related to operating lease obligations of $17.5 million for leases that had not yet commenced as of such date, are expected to commence in 2024 and have lease terms of one The weighted average remaining lease terms (other than for short-term leases) and discount rates were as follows: As of March 31, 2024 Weighted average remaining lease term (in years): Operating leases 4.27 Finance leases 4.96 Weighted average discount rate: Operating leases 4.5 % Finance leases 6.3 % 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 | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. INCOME TAXES: Quanta’s effective tax rates for the three months ended March 31, 2024 and 2023 were a provision of 14.3% and a benefit of 3.7%. The tax rates for the three months ended March 31, 2024 and 2023 were favorably impacted by the recognition of $21.6 million and $32.0 million of benefits that resulted from equity incentive awards vesting at a higher fair market value than their grant date fair value. 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. As of March 31, 2024, the total amount of unrecognized tax benefits relating to uncertain tax positions was $47.4 million, a net increase of $2.3 million from December 31, 2023, which resulted from positions expected to be taken in 2024. Quanta’s consolidated federal income tax returns for tax years 2017, 2018, and 2020 through 2022 remain open to examination by the IRS, as the applicable statute of limitations periods have not yet expired. Additionally, various state and foreign tax returns filed by Quanta and certain subsidiaries for multiple periods remain under examination by various U.S. state and foreign tax authorities. Quanta does not consider any U.S. state in which it does business to be a major tax jurisdiction. Quanta believes it is reasonably possible that within the next 12 months unrecognized tax benefits may decrease by up to $8.9 million as a result of settlement of these examinations or as a result of the expiration of certain statute of limitations periods. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Equity | 11. EQUITY: 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. As of March 31, 2024, $499.7 million remained available under this repurchase program. 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. Dividends Quanta declared and paid the following cash dividends and cash dividend equivalents during 2023 and the first three months of 2024 (in thousands, except per share amounts): Declaration Record Payment Dividend Dividends Date Date Date Per Share Declared March 28, 2024 April 9, 2024 April 17, 2024 $ 0.09 $ 13,477 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 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 12. STOCK-BASED COMPENSATION: Restricted Stock Units (RSUs) to be Settled in Common Stock A summary of the activity for RSUs to be settled in common stock for the three months ended March 31, 2024 and 2023 is as follows (RSUs in thousands): 2024 2023 RSUs Weighted Average RSUs Weighted Average Unvested at January 1 2,548 $104.76 3,263 $78.74 Granted 561 $236.82 626 $158.82 Vested (635) $111.81 (1,120) $65.50 Forfeited (20) $144.76 (75) $107.63 Unvested at March 31 2,454 $132.93 2,694 $102.59 The approximate fair value of RSUs that vested during the three months ended March 31, 2024 and 2023 was $152.5 million and $176.1 million. During the three months ended March 31, 2024 and 2023, Quanta recognized $25.7 million and $22.6 million of non-cash stock compensation expense related to RSUs to be settled in common stock. As of March 31, 2024, there was $239.3 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 3.19 years. Performance Stock Units (PSUs) to be Settled in Common Stock A summary of the activity for PSUs to be settled in common stock for the three months ended March 31, 2024 and 2023 is as follows (PSUs in thousands): 2024 2023 PSUs Weighted Average PSUs Weighted Average Unvested at January 1 491 $129.70 733 $65.39 Granted 109 $257.29 177 $174.50 Vested (175) $96.45 (413) $35.12 Unvested at March 31 425 $176.03 497 $129.38 The Monte Carlo simulation valuation methodology applied the following key inputs: 2024 2023 Valuation date price based on March 4, 2024 and March 9, 2023 closing stock prices of Quanta common stock $243.34 $160.55 Expected volatility 33 % 35 % Risk-free interest rate 4.43 % 4.62 % Term in years 2.83 2.81 During the three months ended March 31, 2024 and 2023, Quanta recognized $9.6 million and $4.9 million of non-cash stock compensation expense related to PSUs to be settled in common stock. As of March 31, 2024, there was an estimated $55.9 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 2.16 years. During the three months ended March 31, 2024 and 2023, 0.3 million and 0.7 million shares of common stock were issued in connection with earned and vested PSUs. The approximate fair values of PSUs earned and vested during the three months ended March 31, 2024 and 2023 were $75.4 million and $115.5 million, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2024 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 13. EMPLOYEE BENEFIT PLANS: 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. As of March 31, 2024 and December 31, 2023, the liability related to deferred cash compensation under these plans, including amounts contributed by Quanta, was $101.8 million and $88.9 million, the majority of which was included in “Insurance and other non-current liabilities” in the accompanying condensed consolidated balance sheets. Additionally, as of March 31, 2024 and December 31, 2023, the settlement and issuance of 176,305 and 174,079 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 March 31, 2024 and December 31, 2023, the fair market values were $95.7 million and $83.4 million and were included in “Other assets, net” in the accompanying condensed 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): Three Months Ended March 31, Classification Change in fair market value of 2024 2023 Loss included in Selling, general and administrative expenses Deferred compensation liabilities $ (6,513) $ (4,076) Other income, net COLI assets $ 6,049 $ 3,146 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. 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 later 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 second 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 March 31, 2024, 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 condensed consolidated balance sheet as of March 31, 2024. 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. 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 March 2024 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 March 31, 2024, 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. 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. As of March 31, 2024 and December 31, 2023, the gross amount accrued for employer’s liability, workers’ compensation, auto liability, general liability, and group health claims totaled $371.0 million and $351.7 million, of which $237.0 million and $229.2 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 March 31, 2024 and December 31, 2023 were $5.5 million and $4.9 million, of which $0.9 million and $0.3 million are included in “Prepaid expenses and other current assets” and $4.6 million and $4.6 million are included in “Other assets, net.” Bonds As of March 31, 2024, the total amount of the outstanding performance bonds was estimated to be approximately $8.1 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. Capital Commitments and Other Committed Expenditures As of March 31, 2024, Quanta had $64.2 million of outstanding capital commitments associated with investments in unconsolidated affiliates, the majority of which relates to a limited partnership interest in a fund that targets investments in certain portfolio companies that operate businesses related to the transition to a reduced-carbon economy. As of March 31, 2024, Quanta had $133.7 million of unfilled production orders primarily related to its fleet of vehicles, which have expected delivery dates during the remainder of 2024, in order to accommodate manufacturer lead times on certain types of vehicles. Although Quanta has committed to purchase these vehicles at the time of their delivery, Quanta anticipates that the majority of these orders will be assigned to third party leasing companies and made available under certain master equipment lease agreements, thereby releasing Quanta from its capital commitments. |
Detail of Certain Accounts
Detail of Certain Accounts | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Detail of Certain Accounts | 15. DETAIL OF CERTAIN ACCOUNTS: Cash and Cash Equivalents As of March 31, 2024 and December 31, 2023, cash equivalents were $161.1 million and $610.8 million and consisted primarily of money market investments, money market mutual funds and short-term deposits. 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): March 31, 2024 December 31, 2023 Cash and cash equivalents held by domestic joint ventures $ 88,264 $ 41,427 Cash and cash equivalents held by foreign joint ventures 10,192 10,968 Total cash and cash equivalents held by joint ventures 98,456 52,395 Cash and cash equivalents held by captive insurance company 18,766 19,088 Cash and cash equivalents not held by joint ventures or captive insurance company 413,834 1,218,765 Total cash and cash equivalents $ 531,056 $ 1,290,248 Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following (in thousands): March 31, 2024 December 31, 2023 Accounts payable, trade $ 1,848,562 $ 2,027,588 Accrued compensation and related expenses 393,990 526,221 Other accrued expenses 514,994 507,433 Accounts payable and accrued expenses $ 2,757,546 $ 3,061,242 Other accrued expenses primarily include accrued insurance liabilities, income and franchise taxes payable and deferred revenues. Property and Equipment Accumulated depreciation related to property and equipment was $1.85 billion and $1.82 billion as of March 31, 2024 and December 31, 2023. In addition, Quanta held property and equipment, net of $223.2 million and $245.7 million in foreign countries, primarily Canada, as of March 31, 2024 and December 31, 2023. Other Intangible Assets Accumulated amortization related to other intangible assets was $1.37 billion and $1.31 billion as of March 31, 2024 and December 31, 2023. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 16. SUPPLEMENTAL CASH FLOW INFORMATION: Reconciliations of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of such amounts shown in the statements of cash flows are as follows (in thousands): March 31, 2024 2023 Cash and cash equivalents $ 531,056 $ 217,115 Restricted cash included in “Prepaid expenses and other current assets” (1) 1,097 6,059 Restricted cash included in “Other assets, net” (1) 1,228 950 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 533,381 $ 224,124 December 31, 2023 2022 Cash and cash equivalents $ 1,290,248 $ 428,505 Restricted cash included in “Prepaid expenses and other current assets” (1) 3,652 3,759 Restricted cash included in “Other assets, net” (1) 1,141 950 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 1,295,041 $ 433,214 (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): Three Months Ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ (25,909) $ (23,627) Operating cash flows used by finance leases $ (722) $ (28) Financing cash flows used by finance leases $ (2,100) $ (422) Lease assets obtained in exchange for lease liabilities: Operating leases $ 28,255 $ 30,876 Finance leases $ 362 $ 13,277 Lease financing transaction assets obtained in exchange for lease financing transaction liabilities $ 25,616 $ 2,237 Additional supplemental cash flow information is as follows (in thousands): Three Months Ended March 31, 2024 2023 Cash (paid) received during the period for: Interest paid $ (29,006) $ (17,606) Income taxes paid $ (22,240) $ (17,386) Income tax refunds $ 790 $ 1,266 Accrued capital expenditures were $33.6 million and $20.5 million as of March 31, 2024 and 2023. The impact of these items has been excluded from Quanta’s capital expenditures in the accompanying condensed consolidated statements of cash flows due to their non-cash nature. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) Attributable to Parent | $ 118,360 | $ 95,046 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Derrick A. Jensen [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 1, 2024, Derrick A. Jensen, Executive Vice President of Quanta, adopted a Rule 10b5-1 trading arrangement (as such term is defined in Item 408 of Regulation S-K), with an effective date of March 31, 2024 and an expiration date of December 27, 2024. Mr. Jensen’s plan provides for the potential sale of up to 30,000 shares of Quanta common stock and is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act. |
Name | Derrick A. Jensen |
Title | Executive Vice President |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 1, 2024 |
Arrangement Duration | 271 days |
Aggregate Available | 30,000 |
Donald C. Wayne [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 27, 2024, the Rule 10b5-1 trading arrangement previously adopted by Donald C. Wayne, Executive Vice President and General Counsel of Quanta, terminated upon execution of all orders. Mr. Wayne’s plan provided for the sale of up to 17,750 shares of Quanta common stock through April 30, 2024. |
Name | Donald C. Wayne |
Title | Executive Vice President and General Counsel |
Rule 10b5-1 Arrangement Terminated | true |
Termination Date | March 27, 2024 |
Aggregate Available | 17,750 |
Business and Organization, Ba_2
Business and Organization, Basis of Presentation and Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Condensed Consolidated Financial Information | These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP), have been condensed or omitted pursuant to those rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Quanta’s Annual Report on Form 10-K for the year ended December 31, 2023. Quanta believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income and cash flows with respect to the interim condensed consolidated financial statements have been included. |
Recently Adopted Guidance and New Accounting Pronouncements and Disclosure Rules Not Yet Adopted | Recently Adopted Guidance 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. New Accounting Pronouncements and Disclosure Rules Not Yet Adopted In March 2024, the U.S. Securities and Exchange Commission (SEC) issued its final climate disclosure rule (the Final Rule) that requires public entities to disclose certain material climate-related information in annual reports and registration statements, including disclosure of material impacts as a result of severe weather events and other natural conditions and material Scope 1 and Scope 2 greenhouse gas emissions. Disclosures will be required prospectively, with information for prior periods required only to the extent the information was disclosed in a prior SEC filing. Certain requirements of the Final Rule are effective for fiscal years beginning on or after January 1, 2025, with phase-in periods for additional requirements. However, on April 4, 2024, the SEC issued a stay pending judicial review of the Final Rule in U.S. federal court. Quanta is currently assessing the effect of the Final Rule. 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 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. 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. |
Revenue Recognition | Contracts 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, or supply chain and logistical challenges related to, 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. 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 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. 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 with respect to Quanta’s 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 risk pools for the purpose of calculating its historical credit loss experience. Quanta’s historical loss ratio and its determination of risk pools, which are used to calculate expected credit losses, may be adjusted for changes in customer credit concentrations within its portfolio of financial assets, changes in 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 the 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 March 31, 2024 and December 31, 2023, unbilled receivables included in “Accounts receivable” were $794.3 million and $743.6 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 $66.7 million and $58.6 million as of March 31, 2024 and December 31, 2023. |
Segment Information | Quanta reports its results under three reportable segments described below: • Electric Power Infrastructure Solutions (Electric Power) . Quanta’s Electric Power segment provides comprehensive infrastructure solutions to customers in the electric power and communications markets. • Renewable Energy Infrastructure Solutions (Renewable Energy). Quanta’s Renewable Energy segment provides comprehensive infrastructure solutions to customers that are involved in the renewable energy industry. • Underground Utility and Infrastructure Solutions (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. 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. |
Depreciation Expense | Depreciation Expense |
Income Taxes | Quanta regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain, including in connection with changes in tax laws. The estimation of required valuation allowances includes estimates of future taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Quanta considers projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income differs from these estimates, Quanta may not realize deferred tax assets to the extent estimated. |
Cash and Cash Equivalents | Cash and cash equivalents held by joint ventures, which are either consolidated or proportionately consolidated, are available to support joint venture operations, but Quanta cannot utilize those assets to support its other operations. Quanta generally has no right to cash and cash equivalents held by a joint venture other than participating in distributions, to the extent made, and in the event of dissolution. Cash and cash equivalents held by Quanta’s wholly-owned captive insurance company are generally not available for use in support of its other operations. |
Revenue Recognition and Relat_2
Revenue Recognition and Related Balance Sheet Accounts (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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): Three Months Ended March 31, 2024 2023 By contract type: Fixed price contracts $ 2,672,315 53.1 % $ 1,934,888 43.7 % Unit-price contracts 1,427,507 28.4 1,497,394 33.8 Cost-plus contracts 931,997 18.5 996,544 22.5 Total revenues $ 5,031,819 100.0 % $ 4,428,826 100.0 % Three Months Ended March 31, 2024 2023 By primary geographic location: United States $ 4,569,716 90.8 % $ 3,666,365 82.8 % Canada 229,427 4.6 542,360 12.2 Australia 146,029 2.9 154,677 3.5 Others 86,647 1.7 65,424 1.5 Total revenues $ 5,031,819 100.0 % $ 4,428,826 100.0 % |
Contract Assets and Liabilities | Contract assets and liabilities consisted of the following (in thousands): March 31, 2024 December 31, 2023 Contract assets $ 1,274,686 $ 1,413,057 Contract liabilities $ 1,443,125 $ 1,538,677 |
Composition of the Allowance for Credit Losses | Activity in Quanta’s allowance for credit losses consisted of the following (in thousands): Three Months Ended March 31, 2024 2023 Balance at beginning of period $ 13,962 $ 15,644 Increase in provision for credit losses 271 2,358 Write-offs charged against the allowance net of recoveries of amounts previously written off (278) (1,472) Balance at end of period $ 13,955 $ 16,530 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Summarized Financial Information | The following table sets forth segment revenues and segment operating income (loss) for the three months ended March 31, 2024 and 2023. Operating margin is calculated by dividing operating income (loss) by revenues. The following table shows dollars in thousands: Three Months Ended March 31, 2024 2023 Revenues: Electric Power $ 2,326,960 46.2 % $ 2,336,037 52.7 % Renewable Energy 1,584,164 31.5 1,008,300 22.8 Underground and Infrastructure 1,120,695 22.3 1,084,489 24.5 Consolidated revenues $ 5,031,819 100.0 % $ 4,428,826 100.0 % Operating income (loss) : Electric Power (1) $ 228,025 9.8 % $ 215,149 9.2 % Renewable Energy 74,846 4.7 % 35,656 3.5 % Underground and Infrastructure 46,888 4.2 % 61,573 5.7 % Corporate and Non-Allocated Costs (2) (194,405) (3.9) % (186,518) (4.2) % Consolidated operating income $ 155,354 3.1 % $ 125,860 2.8 % (1) Includes equity in earnings of integral unconsolidated affiliates of $12.3 million and $9.6 million for the three months ended March 31, 2024 and 2023, primarily related to Quanta’s equity interest in LUMA Energy, LLC (LUMA). (2) Includes amortization expense of $77.5 million and $72.4 million and non-cash stock-based compensation of $35.3 million and $27.5 million for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 2023 Depreciation: Electric Power $ 40,447 $ 42,085 Renewable Energy 17,795 10,858 Underground and Infrastructure 24,986 20,500 Corporate and Non-Allocated Costs 5,667 4,939 Consolidated depreciation $ 88,895 $ 78,382 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Aggregate Consideration Paid or Payable and Allocation 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 March 31, 2024 for acquisitions completed in the three months ended March 31, 2024 (in thousands): Three Months Ended March 31, 2024 Consideration: Cash paid or payable $ 382,929 Value of Quanta common stock issued 51,768 Contingent consideration 14,463 Fair value of total consideration transferred or estimated to be transferred $ 449,160 Cash and cash equivalents $ 8,453 Accounts receivable 50,845 Contract assets 162 Inventories 14,127 Prepaid expenses and other current assets 12,176 Property and equipment 92,676 Operating lease right-of-use assets 15,532 Other assets 456 Identifiable intangible assets 122,301 Current maturities of long-term debt (4,431) Current portion of operating lease liabilities (4,134) Accounts payable and accrued liabilities (51,325) Contract liabilities (390) Long-term debt, net of current maturities (4,436) Operating lease liabilities, net of current portion (11,398) Deferred income taxes (42,363) Total identifiable net assets 198,251 Goodwill 250,909 Fair value of net assets acquired $ 449,160 |
Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization | The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in the three months ended March 31, 2024 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). Three Months Ended March 31, 2024 Estimated Fair Value Weighted Average Amortization Period in Years Customer relationships $ 102,106 6.7 Backlog 4,495 1.7 Trade names 14,456 15.0 Non-compete agreements 1,244 5.0 Total intangible assets subject to amortization $ 122,301 7.5 |
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 three months ended March 31, 2024 as of the respective acquisition dates: Three Months Ended March 31, 2024 Range Weighted Average Discount rates 15% to 22% 15% Customer attrition rates 10% to 23% 12% |
Unaudited Supplemental Pro Forma Results of Operations | The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in the three months ended March 31, 2024 and the year ended December 31, 2023, 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). Three Months Ended March 31, 2024 2023 Revenues $ 5,033,522 $ 4,535,366 Net income attributable to common stock $ 118,213 $ 86,670 |
Investments in Affiliates and_2
Investments in Affiliates and Other Entities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments [Abstract] | |
Schedule of Equity Investments | The following table presents Quanta’s equity investments by type (in thousands): March 31, 2024 December 31, 2023 Equity method investments - integral unconsolidated affiliates $ 96,948 $ 96,124 Equity method investments - non-integral unconsolidated affiliates 9,480 28,105 Non-marketable equity securities 53,388 53,868 Total equity investments $ 159,816 $ 178,097 |
Per Share Information (Tables)
Per Share Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share Attributable to Common Stock | The amounts used to compute basic and diluted earnings per share attributable to common stock consisted of the following (in thousands): Three Months Ended March 31, 2024 2023 Amounts attributable to common stock: Net income attributable to common stock $ 118,360 $ 95,046 Weighted average shares: Weighted average shares outstanding for basic earnings per share attributable to common stock 145,936 144,467 Effect of dilutive unvested non-participating stock-based awards 3,414 4,194 Weighted average shares outstanding for diluted earnings per share attributable to common stock 149,350 148,661 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Debt Obligations | Quanta’s long-term debt obligations consisted of the following (in thousands): March 31, 2024 December 31, 2023 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) 854,364 867,137 Borrowings under commercial paper program 208,350 705,900 Lease financing transactions 126,409 102,955 Other long-term debt 6,219 6,279 Finance leases 46,373 39,577 Unamortized discount and financing costs (20,991) (23,142) Total long-term debt obligations 3,720,724 4,198,706 Less — Current maturities of long-term debt 546,543 535,202 Total long-term debt obligations, net of current maturities $ 3,174,181 $ 3,663,504 |
Schedule of Interest on Senior Notes | 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): Three Months Ended March 31, 2024 2023 Maximum amount outstanding $ 867,204 $ 956,308 Average daily amount outstanding $ 841,295 $ 859,270 Weighted-average interest rate 6.80 % 5.99 % Borrowings under the commercial paper program and the applicable interest rates were as follows (dollars in thousands): Three Months Ended March 31, 2024 2023 Maximum amount outstanding $ 705,900 $ 747,700 Average daily amount outstanding $ 216,075 $ 494,600 Weighted-average interest rate 5.80 % 5.38 % |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Components of Lease Costs | The components of lease costs in the accompanying condensed consolidated statements of operations are as follows (in thousands): Three Months Ended March 31, Lease cost Classification 2024 2023 Finance lease cost: Amortization of lease assets Depreciation (1) $ 2,969 $ 911 Interest on lease liabilities Interest and other financing expenses 722 208 Lease financing transactions: (2) Depreciation Depreciation (1) 2,092 2,252 Interest Interest and other financing expenses 3,498 4,299 Operating lease cost Cost of services and Selling, general and administrative expenses 25,534 23,223 Short-term and variable lease cost (3) Cost of services and Selling, general and administrative expenses 287,335 238,078 Total lease cost $ 322,150 $ 268,971 (1) Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying condensed 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. |
Future Minimum Lease Payments - Operating Leases | Future minimum lease payments for operating leases and finance leases were as follows (in thousands): As of March 31, 2024 Operating Leases Finance Leases Total Remainder of 2024 $ 73,023 $ 9,655 $ 82,678 2025 81,366 10,436 91,802 2026 63,052 9,428 72,480 2027 44,661 8,078 52,739 2028 26,108 7,203 33,311 Thereafter 27,077 6,029 33,106 Total future minimum payments related to operating leases and finance leases 315,287 50,829 366,116 Less imputed interest (29,548) (4,456) (34,004) Total $ 285,739 $ 46,373 $ 332,112 |
Future Minimum Lease Payments - Finance Leases | Future minimum lease payments for operating leases and finance leases were as follows (in thousands): As of March 31, 2024 Operating Leases Finance Leases Total Remainder of 2024 $ 73,023 $ 9,655 $ 82,678 2025 81,366 10,436 91,802 2026 63,052 9,428 72,480 2027 44,661 8,078 52,739 2028 26,108 7,203 33,311 Thereafter 27,077 6,029 33,106 Total future minimum payments related to operating leases and finance leases 315,287 50,829 366,116 Less imputed interest (29,548) (4,456) (34,004) Total $ 285,739 $ 46,373 $ 332,112 |
Other Information Related to Leases | The weighted average remaining lease terms (other than for short-term leases) and discount rates were as follows: As of March 31, 2024 Weighted average remaining lease term (in years): Operating leases 4.27 Finance leases 4.96 Weighted average discount rate: Operating leases 4.5 % Finance leases 6.3 % |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Dividends | Quanta declared and paid the following cash dividends and cash dividend equivalents during 2023 and the first three months of 2024 (in thousands, except per share amounts): Declaration Record Payment Dividend Dividends Date Date Date Per Share Declared March 28, 2024 April 9, 2024 April 17, 2024 $ 0.09 $ 13,477 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 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of RSUs and PSUs to be Settled in Common Stock Activity | A summary of the activity for RSUs to be settled in common stock for the three months ended March 31, 2024 and 2023 is as follows (RSUs in thousands): 2024 2023 RSUs Weighted Average RSUs Weighted Average Unvested at January 1 2,548 $104.76 3,263 $78.74 Granted 561 $236.82 626 $158.82 Vested (635) $111.81 (1,120) $65.50 Forfeited (20) $144.76 (75) $107.63 Unvested at March 31 2,454 $132.93 2,694 $102.59 A summary of the activity for PSUs to be settled in common stock for the three months ended March 31, 2024 and 2023 is as follows (PSUs in thousands): 2024 2023 PSUs Weighted Average PSUs Weighted Average Unvested at January 1 491 $129.70 733 $65.39 Granted 109 $257.29 177 $174.50 Vested (175) $96.45 (413) $35.12 Unvested at March 31 425 $176.03 497 $129.38 |
Grant Date Fair Value for Awards of Performance Units Inputs | The Monte Carlo simulation valuation methodology applied the following key inputs: 2024 2023 Valuation date price based on March 4, 2024 and March 9, 2023 closing stock prices of Quanta common stock $243.34 $160.55 Expected volatility 33 % 35 % Risk-free interest rate 4.43 % 4.62 % Term in years 2.83 2.81 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Postemployment Benefits [Abstract] | |
Schedule of Changes in Fair Market Value of COLI Assets and Deferred Compensation Liabilities | 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): Three Months Ended March 31, Classification Change in fair market value of 2024 2023 Loss included in Selling, general and administrative expenses Deferred compensation liabilities $ (6,513) $ (4,076) Other income, net COLI assets $ 6,049 $ 3,146 |
Detail of Certain Accounts (Tab
Detail of Certain Accounts (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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): March 31, 2024 December 31, 2023 Cash and cash equivalents held by domestic joint ventures $ 88,264 $ 41,427 Cash and cash equivalents held by foreign joint ventures 10,192 10,968 Total cash and cash equivalents held by joint ventures 98,456 52,395 Cash and cash equivalents held by captive insurance company 18,766 19,088 Cash and cash equivalents not held by joint ventures or captive insurance company 413,834 1,218,765 Total cash and cash equivalents $ 531,056 $ 1,290,248 |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following (in thousands): March 31, 2024 December 31, 2023 Accounts payable, trade $ 1,848,562 $ 2,027,588 Accrued compensation and related expenses 393,990 526,221 Other accrued expenses 514,994 507,433 Accounts payable and accrued expenses $ 2,757,546 $ 3,061,242 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 condensed consolidated balance sheets that sum to the total of such amounts shown in the statements of cash flows are as follows (in thousands): March 31, 2024 2023 Cash and cash equivalents $ 531,056 $ 217,115 Restricted cash included in “Prepaid expenses and other current assets” (1) 1,097 6,059 Restricted cash included in “Other assets, net” (1) 1,228 950 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 533,381 $ 224,124 December 31, 2023 2022 Cash and cash equivalents $ 1,290,248 $ 428,505 Restricted cash included in “Prepaid expenses and other current assets” (1) 3,652 3,759 Restricted cash included in “Other assets, net” (1) 1,141 950 Total cash, cash equivalents, and restricted cash reported in the statements of cash flows $ 1,295,041 $ 433,214 (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): Three Months Ended March 31, 2024 2023 Cash (paid) received during the period for: Interest paid $ (29,006) $ (17,606) Income taxes paid $ (22,240) $ (17,386) Income tax refunds $ 790 $ 1,266 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ (25,909) $ (23,627) Operating cash flows used by finance leases $ (722) $ (28) Financing cash flows used by finance leases $ (2,100) $ (422) Lease assets obtained in exchange for lease liabilities: Operating leases $ 28,255 $ 30,876 Finance leases $ 362 $ 13,277 Lease financing transaction assets obtained in exchange for lease financing transaction liabilities $ 25,616 $ 2,237 |
Revenue Recognition and Relat_3
Revenue Recognition and Related Balance Sheet Accounts - Revenue Disaggregated by Geographic Location and Contract Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 5,031,819 | $ 4,428,826 |
Percent of total revenues (in percent) | 100% | 100% |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 4,569,716 | $ 3,666,365 |
Percent of total revenues (in percent) | 90.80% | 82.80% |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 229,427 | $ 542,360 |
Percent of total revenues (in percent) | 4.60% | 12.20% |
Australia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 146,029 | $ 154,677 |
Percent of total revenues (in percent) | 2.90% | 3.50% |
Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 86,647 | $ 65,424 |
Percent of total revenues (in percent) | 1.70% | 1.50% |
Fixed price contracts | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,672,315 | $ 1,934,888 |
Percent of total revenues (in percent) | 53.10% | 43.70% |
Unit-price contracts | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 1,427,507 | $ 1,497,394 |
Percent of total revenues (in percent) | 28.40% | 33.80% |
Cost-plus contracts | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 931,997 | $ 996,544 |
Percent of total revenues (in percent) | 18.50% | 22.50% |
Revenue Recognition and Relat_4
Revenue Recognition and Related Balance Sheet Accounts - Additional Information (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 USD ($) pool | Dec. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) customer pool | Mar. 31, 2023 USD ($) customer | |
Disaggregation of Revenue [Line Items] | ||||
Percent of total revenues recognized associated with revenue recognition method | 57.50% | 50.10% | ||
Remaining performance obligation | $ 14,880 | $ 13,890 | $ 14,880 | |
Revenues recognized related to change orders and claims | $ 774.8 | 778.9 | $ 774.8 | |
Change in contract estimates, favorable (unfavorable) impact on revenue, percent | 0.10% | |||
Change in contract estimates, unfavorable impact on operating results, amount | $ 21.9 | |||
Revenue recognized related to amounts in contract liabilities outstanding at the beginning of period | $ 952.6 | $ 641.1 | ||
Number of pools | pool | 2 | 2 | ||
Current retainage balances | $ 624.2 | 610 | $ 624.2 | |
Non-current retainage balances | 88.4 | 78.7 | 88.4 | |
Unbilled receivables | 794.3 | 743.6 | 794.3 | |
Unearned revenues, current portion | $ 66.7 | $ 58.6 | $ 66.7 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||||
Disaggregation of Revenue [Line Items] | ||||
Percent of remaining performance obligation expected to be recognized | 66.90% | |||
Recognition period for remaining performance obligation | 12 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||||
Disaggregation of Revenue [Line Items] | ||||
Percent of remaining performance obligation expected to be recognized | 64.60% | 64.60% | ||
Recognition period for remaining performance obligation | 12 months | 12 months | ||
Projects In Progress | ||||
Disaggregation of Revenue [Line Items] | ||||
Change in contract estimates, (favorable) unfavorable impact on operating results, percent | 5% | 5% | ||
Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Number of customers representing ten percent or more of revenues | customer | 0 | 0 | ||
Customer Concentration Risk | One Customer | Accounts Receivable | Renewable Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage (in percent) | 10% | 10% | ||
Credit Concentration Risk | Financial Instruments | Secondary Pool | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage (in percent) | 12% |
Revenue Recognition and Relat_5
Revenue Recognition and Related Balance Sheet Accounts - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 1,274,686 | $ 1,413,057 |
Contract liabilities | $ 1,443,125 | $ 1,538,677 |
Revenue Recognition and Relat_6
Revenue Recognition and Related Balance Sheet Accounts - Composition of the Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 13,962 | $ 15,644 |
Increase in provision for credit losses | 271 | 2,358 |
Write-offs charged against the allowance net of recoveries of amounts previously written off | (278) | (1,472) |
Balance at end of period | $ 13,955 | $ 16,530 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Summarize
Segment Information - Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 5,031,819 | $ 4,428,826 |
Operating income (loss) | $ 155,354 | $ 125,860 |
Operating income (loss) margin (in percent) | 3.10% | 2.80% |
Equity in earnings of integral unconsolidated affiliates | $ 12,334 | $ 9,620 |
Non-cash stock-based compensation | 35,331 | 27,451 |
Depreciation | 88,895 | 78,382 |
Integral Unconsolidated Affiliates | Related Party | ||
Segment Reporting Information [Line Items] | ||
Equity in earnings of integral unconsolidated affiliates | $ 12,300 | $ 9,600 |
Revenue from Contract with Customer, Segment Benchmark | Segment Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage (in percent) | 100% | 100% |
Corporate and Non-Allocated Costs | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ (194,405) | $ (186,518) |
Operating income (loss) margin (in percent) | (3.90%) | (4.20%) |
Amortization | $ 77,500 | $ 72,400 |
Non-cash stock-based compensation | 35,300 | 27,500 |
Depreciation | 5,667 | 4,939 |
Electric Power | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,326,960 | 2,336,037 |
Operating income (loss) | $ 228,025 | $ 215,149 |
Operating income (loss) margin (in percent) | 9.80% | 9.20% |
Depreciation | $ 40,447 | $ 42,085 |
Electric Power | Operating Segments | Revenue from Contract with Customer, Segment Benchmark | Segment Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage (in percent) | 46.20% | 52.70% |
Renewable Energy | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,584,164 | $ 1,008,300 |
Operating income (loss) | $ 74,846 | $ 35,656 |
Operating income (loss) margin (in percent) | 4.70% | 3.50% |
Depreciation | $ 17,795 | $ 10,858 |
Renewable Energy | Operating Segments | Revenue from Contract with Customer, Segment Benchmark | Segment Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage (in percent) | 31.50% | 22.80% |
Underground and Infrastructure | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,120,695 | $ 1,084,489 |
Operating income (loss) | $ 46,888 | $ 61,573 |
Operating income (loss) margin (in percent) | 4.20% | 5.70% |
Depreciation | $ 24,986 | $ 20,500 |
Underground and Infrastructure | Operating Segments | Revenue from Contract with Customer, Segment Benchmark | Segment Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage (in percent) | 22.30% | 24.50% |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) business shares | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) business shares | |
Business Acquisition [Line Items] | |||||
Net tangible assets acquired | $ 194,200 | ||||
Intangible assets | 207,800 | ||||
Goodwill, acquired during period | 403,400 | ||||
Cash payment for contingent consideration liabilities | $ 5,000 | ||||
Other Noncurrent Liabilities | |||||
Business Acquisition [Line Items] | |||||
Outstanding contingent consideration liabilities | $ 172,000 | 172,000 | $ 157,100 | ||
Acquisitions 2024 | |||||
Business Acquisition [Line Items] | |||||
Fair value of total consideration transferred or estimated to be transferred | $ 449,160 | ||||
Number of businesses acquired | business | 3 | ||||
Cash consideration | $ 382,929 | ||||
Number of shares granted for acquired companies (in shares) | shares | 250,539 | ||||
Value of Quanta common stock issued | $ 51,768 | ||||
Intangible assets | 122,301 | ||||
Goodwill expected to be deductible for income tax | 10,600 | 10,600 | |||
Revenues included in consolidated results of operations | 67,700 | ||||
Income (loss) before taxes | (9,100) | ||||
Amortization expense | 4,800 | ||||
Acquisition costs | 5,900 | ||||
Acquisitions 2024 | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Fair value of total consideration transferred or estimated to be transferred | $ 72,000 | ||||
Acquisitions 2023 | |||||
Business Acquisition [Line Items] | |||||
Number of businesses acquired | business | 5 | ||||
Cash consideration | $ 785,700 | ||||
Number of shares granted for acquired companies (in shares) | shares | 1,238,576 | ||||
Value of Quanta common stock issued | $ 158,900 | ||||
Revenues included in consolidated results of operations | 93,500 | ||||
Income (loss) before taxes | (16,100) | ||||
Amortization expense | 8,600 | ||||
Acquisition costs | $ 17,800 | ||||
Acquisitions, Multiple Periods | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration payments (up to) | $ 352,600 | $ 352,600 |
Acquisitions - Aggregate Consid
Acquisitions - Aggregate Consideration Paid or Payable and Allocation of Net Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 4,283,804 | $ 4,045,905 |
Acquisitions 2024 | ||
Business Acquisition [Line Items] | ||
Cash paid or payable | 382,929 | |
Value of Quanta common stock issued | 51,768 | |
Contingent consideration | 14,463 | |
Fair value of total consideration transferred or estimated to be transferred | 449,160 | |
Cash and cash equivalents | 8,453 | |
Accounts receivable | 50,845 | |
Contract assets | 162 | |
Inventories | 14,127 | |
Prepaid expenses and other current assets | 12,176 | |
Property and equipment | 92,676 | |
Operating lease right-of-use assets | 15,532 | |
Other assets | 456 | |
Identifiable intangible assets | 122,301 | |
Current maturities of long-term debt | (4,431) | |
Current portion of operating lease liabilities | (4,134) | |
Accounts payable and accrued liabilities | (51,325) | |
Contract liabilities | (390) | |
Long-term debt, net of current maturities | (4,436) | |
Operating lease liabilities, net of current portion | (11,398) | |
Deferred income taxes | (42,363) | |
Total identifiable net assets | 198,251 | |
Goodwill | 250,909 | |
Fair value of net assets acquired | $ 449,160 |
Acquisitions - Estimated Fair V
Acquisitions - Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 207,800 | |
Acquisitions 2024 | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 122,301 | |
Weighted Average Amortization Period in Years | 7 years 6 months | |
Acquisitions 2024 | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 102,106 | |
Weighted Average Amortization Period in Years | 6 years 8 months 12 days | |
Acquisitions 2024 | Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 4,495 | |
Weighted Average Amortization Period in Years | 1 year 8 months 12 days | |
Acquisitions 2024 | Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 14,456 | |
Weighted Average Amortization Period in Years | 15 years | |
Acquisitions 2024 | Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 1,244 | |
Weighted Average Amortization Period in Years | 5 years |
Acquisitions - Significant Esti
Acquisitions - Significant Estimates Used by Management in Determining Fair Values of Customer Relationships Acquired (Details) - Customer relationships | 3 Months Ended |
Mar. 31, 2024 | |
Minimum | |
Goodwill And Intangible Assets [Line Items] | |
Discount rates (in percent) | 15% |
Customer attrition rates (in percent) | 10% |
Maximum | |
Goodwill And Intangible Assets [Line Items] | |
Discount rates (in percent) | 22% |
Customer attrition rates (in percent) | 23% |
Weighted Average | |
Goodwill And Intangible Assets [Line Items] | |
Discount rates (in percent) | 15% |
Customer attrition rates (in percent) | 12% |
Acquisitions - Unaudited Supple
Acquisitions - Unaudited Supplemental Pro Forma Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | ||
Revenues | $ 5,033,522 | $ 4,535,366 |
Net income attributable to common stock | $ 118,213 | $ 86,670 |
Investments in Affiliates and_3
Investments in Affiliates and Other Entities - Equity Investments by Type (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Non-marketable equity securities | $ 53,388 | $ 53,868 |
Total equity investments | 159,816 | 178,097 |
Integral Affiliates | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 96,948 | 96,124 |
Non-Integral Unconsolidated Affiliates | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 9,480 | $ 28,105 |
Investments in Affiliates and_4
Investments in Affiliates and Other Entities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||
Distributions to non-controlling interests | $ 8,199 | $ 8,741 | ||
Accounts receivable, net | 4,094,914 | $ 4,410,829 | ||
Accounts payable and accrued expenses | 2,757,546 | 3,061,242 | ||
Revenues | 5,031,819 | 4,428,826 | ||
Cost of services | 4,408,325 | 3,855,631 | ||
Equity in earnings of integral unconsolidated affiliates | 12,334 | 9,620 | ||
Carrying amount that exceed share of underlying net equity in net assets | 29,900 | 31,400 | ||
Amortization of equity method investment, difference between carrying amount and underlying equity | 1,500 | 1,800 | ||
Non-controlling Interests | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Distributions to non-controlling interests | 8,199 | 8,741 | ||
Non-Integral Unconsolidated Affiliates | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Realized gain (loss) on disposal | 12,200 | $ 25,900 | ||
Cash received | 34,900 | 58,500 | ||
Equity in earnings (loss) of non-integral unconsolidated affiliates | 3,600 | 1,600 | ||
Non-Integral Unconsolidated Affiliates | Non-controlling Interests | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Realized gain (loss) on disposal | 4,900 | $ 10,400 | ||
Distributions to non-controlling interests | 4,900 | 9,800 | ||
Integral Affiliates | Related Party | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Accounts receivable, net | 81,400 | 96,400 | ||
Accounts payable and accrued expenses | 22,400 | $ 24,500 | ||
Revenues | 59,000 | 48,300 | ||
Cost of services | 88,900 | 12,000 | ||
Integral Unconsolidated Affiliates | Related Party | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in earnings of integral unconsolidated affiliates | 12,300 | $ 9,600 | ||
Integral and Non-Integral Unconsolidated Affiliates | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Undistributed earnings of unconsolidated affiliates | $ 45,200 |
Per Share Information - Basic a
Per Share Information - Basic and Diluted Earnings Per Share Attributable to Common Stock (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Amounts attributable to common stock: | ||
Net income attributable to common stock, basic | $ 118,360 | $ 95,046 |
Net income attributable to common stock, diluted | $ 118,360 | $ 95,046 |
Weighted average shares: | ||
Weighted average shares outstanding for basic earnings per share attributable to common stock (in shares) | 145,936 | 144,467 |
Effect of dilutive unvested non-participating stock-based awards (in shares) | 3,414 | 4,194 |
Weighted average shares outstanding for diluted earnings per share attributable to common stock (in shares) | 149,350 | 148,661 |
Debt Obligations - Long-term De
Debt Obligations - Long-term Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Borrowings under senior credit facility and commercial paper program | $ 854,364 | $ 867,137 |
Lease financing transactions | 126,409 | 102,955 |
Other long-term debt | 6,219 | 6,279 |
Finance leases | 46,373 | 39,577 |
Unamortized discount and financing costs | (20,991) | (23,142) |
Total long-term debt obligations | 3,720,724 | 4,198,706 |
Less — Current maturities of long-term debt | 546,543 | 535,202 |
Long-term debt, net of current maturities | 3,174,181 | 3,663,504 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,480,000 | |
Unamortized discount and financing costs | $ (19,700) | |
0.950% Senior Notes due October 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate (in percent) | 0.95% | |
Long-term debt | $ 500,000 | 500,000 |
2.900% Senior Notes due October 2030 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate (in percent) | 2.90% | |
Long-term debt | $ 1,000,000 | 1,000,000 |
2.350% Senior Notes due January 2032 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate (in percent) | 2.35% | |
Long-term debt | $ 500,000 | 500,000 |
3.050% Senior Notes due October 2041 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate (in percent) | 3.05% | |
Long-term debt | $ 500,000 | 500,000 |
Commercial Paper Program | Commercial Paper | ||
Debt Instrument [Line Items] | ||
Borrowings under senior credit facility and commercial paper program | $ 208,350 | $ 705,900 |
Debt Obligations - Senior Notes
Debt Obligations - Senior Notes (Details) - Senior Notes $ in Thousands | Mar. 31, 2024 USD ($) |
0.950% Senior Notes due October 2024 | |
Debt Instrument [Line Items] | |
Interest rate (in percent) | 0.95% |
Semi-annual interest payable | $ 2,375 |
2.900% Senior Notes due October 2030 | |
Debt Instrument [Line Items] | |
Interest rate (in percent) | 2.90% |
Semi-annual interest payable | $ 14,500 |
2.350% Senior Notes due January 2032 | |
Debt Instrument [Line Items] | |
Interest rate (in percent) | 2.35% |
Semi-annual interest payable | $ 5,875 |
3.050% Senior Notes due October 2041 | |
Debt Instrument [Line Items] | |
Interest rate (in percent) | 3.05% |
Semi-annual interest payable | $ 7,625 |
Debt Obligations - Senior Not_2
Debt Obligations - Senior Notes Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Unamortized discount and financing costs | $ 20,991 | $ 23,142 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 2,130,000 | |
Long-term debt | 2,480,000 | |
Unamortized discount and financing costs | $ 19,700 |
Debt Obligations - Senior Credi
Debt Obligations - Senior Credit Facility Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Line of Credit Facility [Line Items] | ||
Amount borrowed under the credit facility | $ 854,364 | $ 867,137 |
Senior Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Credit facility available for revolving loans or issuing new letters of credit | 2,050,000 | |
Senior Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Amount borrowed under the credit facility | 127,800 | |
Term Loan | Senior Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | 750,000 | |
Amount borrowed under the credit facility | 726,600 | |
Revolving Credit Facility | Senior Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | 2,640,000 | |
Letters of Credit | Senior Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Letters of credit and bank guarantees | 251,200 | |
Letters of Credit and Bank Guarantees | Senior Credit Facility | U.S. Dollar | ||
Line of Credit Facility [Line Items] | ||
Letters of credit and bank guarantees | 94,600 | |
Letters of Credit and Bank Guarantees | Senior Credit Facility | Canadian Dollars | ||
Line of Credit Facility [Line Items] | ||
Letters of credit and bank guarantees | $ 156,600 |
Debt Obligations - Senior Cre_2
Debt Obligations - Senior Credit Facility and Commercial Paper Program Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Commercial Paper Program | Commercial Paper | ||
Line of Credit Facility [Line Items] | ||
Maximum amount outstanding | $ 705,900 | $ 747,700 |
Average daily amount outstanding | $ 216,075 | $ 494,600 |
Weighted-average interest rate (in percent) | 5.80% | 5.38% |
Senior Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum amount outstanding | $ 867,204 | $ 956,308 |
Average daily amount outstanding | $ 841,295 | $ 859,270 |
Weighted-average interest rate (in percent) | 6.80% | 5.99% |
Debt Obligations - Commercial P
Debt Obligations - Commercial Paper Program and Additional Letters of Credit Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Amount borrowed under the credit facility | $ 854,364 | $ 867,137 |
Commercial Paper Program | Commercial Paper | ||
Debt Instrument [Line Items] | ||
Amount borrowed under the credit facility | $ 208,350 | $ 705,900 |
Weighted average interest rate, at point in time | 5.75% | |
Surety-Backed Letters Of Credit | ||
Debt Instrument [Line Items] | ||
Letters of credit and bank guarantees | $ 488,700 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Finance lease cost: | ||
Amortization of lease assets | $ 2,969 | $ 911 |
Interest on lease liabilities | 722 | 208 |
Lease financing transactions | ||
Depreciation | 2,092 | 2,252 |
Interest | 3,498 | 4,299 |
Operating lease cost | 25,534 | 23,223 |
Short-term and variable lease cost | 287,335 | 238,078 |
Total lease cost | $ 322,150 | $ 268,971 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lessee, Lease, Description [Line Items] | ||
Future minimum lease payments for short-term leases | $ 26.5 | |
Lessee, operating lease, lease not yet commenced, undiscounted amount | 17.5 | |
Future payments related to lease financing transactions | $ 95.2 | |
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] | ||
Related party lease expense | $ 4.7 | $ 3.9 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leases | ||
Remainder of 2024 | $ 73,023 | |
2025 | 81,366 | |
2026 | 63,052 | |
2027 | 44,661 | |
2028 | 26,108 | |
Thereafter | 27,077 | |
Total future minimum payments related to operating leases and finance leases | 315,287 | |
Less imputed interest | (29,548) | |
Total | 285,739 | |
Finance Leases | ||
Remainder of 2024 | 9,655 | |
2025 | 10,436 | |
2026 | 9,428 | |
2027 | 8,078 | |
2028 | 7,203 | |
Thereafter | 6,029 | |
Total future minimum payments related to operating leases and finance leases | 50,829 | |
Less imputed interest | (4,456) | |
Finance leases | 46,373 | $ 39,577 |
Total | ||
Remainder of 2024 | 82,678 | |
2025 | 91,802 | |
2026 | 72,480 | |
2027 | 52,739 | |
2028 | 33,311 | |
Thereafter | 33,106 | |
Total future minimum payments related to operating leases, finance leases and lease financing transactions | 366,116 | |
Less imputed interest | (34,004) | |
Total | $ 332,112 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) | Mar. 31, 2024 |
Weighted average remaining lease term (in years): | |
Operating leases | 4 years 3 months 7 days |
Finance leases | 4 years 11 months 15 days |
Weighted average discount rate: | |
Operating leases | 4.50% |
Finance leases | 6.30% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (in percent) | 14.30% | (3.70%) |
Benefits that resulted from equity incentive awards | $ 21.6 | $ 32 |
Total amount of unrecognized tax benefits relating to uncertain tax positions | 47.4 | |
Increase (decrease) in the total amount of unrecognized tax benefits relating to uncertain tax positions | 2.3 | |
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | $ 8.9 |
Equity - Narrative (Details)
Equity - Narrative (Details) - 2023 Repurchase Program - USD ($) $ in Millions | Mar. 31, 2024 | May 23, 2023 |
Equity, Class of Treasury Stock [Line Items] | ||
Aggregate authorized amount of common stock to be repurchased (up to) | $ 500 | |
Amount remaining under stock repurchase programs | $ 499.7 |
Equity - Dividends (Details)
Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||
Mar. 28, 2024 | Dec. 05, 2023 | Aug. 30, 2023 | May 23, 2023 | Mar. 29, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | |||||||
Cash dividends declared (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.09 | $ 0.08 |
Cash dividends declared | $ 13,477 | $ 13,412 | $ 12,430 | $ 11,893 | $ 12,100 | $ 13,477 | $ 12,100 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of PSUs and RSUs to be Settled in Common Stock Activity (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restricted Stock and RSUs to be Settled in Common Stock | ||
Shares | ||
Unvested, shares, beginning of period (in shares) | 2,548 | 3,263 |
Shares granted (in shares) | 561 | 626 |
Vested, shares (in shares) | (635) | (1,120) |
Forfeited, shares (in shares) | (20) | (75) |
Unvested, shares, end of period (in shares) | 2,454 | 2,694 |
Weighted Average Grant Date Fair Value | ||
Unvested, weighted average grant date fair value, beginning of period (in usd per share) | $ 104.76 | $ 78.74 |
Granted, weighted average grant date fair value (in dollars per share) | 236.82 | 158.82 |
Vested, weighted average grant date fair value (in usd per share) | 111.81 | 65.50 |
Forfeited, weighted average grant date fair value (in usd per share) | 144.76 | 107.63 |
Unvested, weighted average grant date fair value, end of period (in usd per share) | $ 132.93 | $ 102.59 |
Performance Stock Units | ||
Shares | ||
Unvested, shares, beginning of period (in shares) | 491 | 733 |
Shares granted (in shares) | 109 | 177 |
Vested, shares (in shares) | (175) | (413) |
Unvested, shares, end of period (in shares) | 425 | 497 |
Weighted Average Grant Date Fair Value | ||
Unvested, weighted average grant date fair value, beginning of period (in usd per share) | $ 129.70 | $ 65.39 |
Granted, weighted average grant date fair value (in dollars per share) | 257.29 | 174.50 |
Vested, weighted average grant date fair value (in usd per share) | 96.45 | 35.12 |
Unvested, weighted average grant date fair value, end of period (in usd per share) | $ 176.03 | $ 129.38 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-cash stock compensation expense | $ 35,331 | $ 27,451 |
Restricted Stock Units to be Settled in Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of restricted stock, vested | 152,500 | 176,100 |
Non-cash stock compensation expense | 25,700 | 22,600 |
Unrecognized compensation cost, related to unvested RSUs to be settled in common stock, total | $ 239,300 | |
Expected weighted average period to recognize compensation cost on RSUs to be settled in common stock (in years) | 3 years 2 months 8 days | |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of restricted stock, vested | $ 75,400 | 115,500 |
Non-cash stock compensation expense | 9,600 | $ 4,900 |
Unrecognized compensation cost, related to unvested RSUs to be settled in common stock, total | $ 55,900 | |
Expected weighted average period to recognize compensation cost on RSUs to be settled in common stock (in years) | 2 years 1 month 28 days | |
Number of common shares issued in connection with performance units (in shares) | 0.3 | 0.7 |
Stock-Based Compensation - Gran
Stock-Based Compensation - Grant Date Fair Value for Awards of Performance Units Inputs (Details) - Performance Stock Units - $ / shares | Mar. 04, 2024 | Mar. 09, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Valuation date price based on March 4, 2024 and March 9, 2023 closing stock prices of Quanta common stock (usd per share) | $ 243.34 | $ 160.55 |
Expected volatility (in percent) | 33% | 35% |
Risk-free interest rate (in percent) | 4.43% | 4.62% |
Term in years | 2 years 9 months 29 days | 2 years 9 months 21 days |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Postemployment Benefits [Abstract] | ||
Deferred compensation liability, noncurrent | $ 101.8 | $ 88.9 |
Shares needed for settlement of deferred compensation obligations (in shares) | 176,305 | 174,079 |
Life insurance | $ 95.7 | $ 83.4 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Fair Market Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Postemployment Benefits [Abstract] | ||
Loss included in Selling, general and administrative expenses | $ (6,513) | $ (4,076) |
Other income, net | $ 6,049 | $ 3,146 |
Commitments and Contingencies -
Commitments and Contingencies - Legal Proceedings (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | 52 Months Ended | |||||
Jan. 31, 2023 | Dec. 31, 2022 | Aug. 31, 2022 | Jun. 30, 2019 | Dec. 31, 2015 | Apr. 30, 2019 | Mar. 31, 2024 | Dec. 31, 2023 | May 31, 2019 | |
Loss Contingencies [Line Items] | |||||||||
Insurance and other non-current liabilities | $ 669,812 | $ 636,250 | |||||||
Redes | Project Contract Termination | |||||||||
Loss Contingencies [Line Items] | |||||||||
Advance payments received | $ 87,000 | ||||||||
On-demand performance bonds | $ 25,000 | ||||||||
Construction costs incurred | $ 157,000 | ||||||||
Payments received on construction contracts | $ 100,000 | ||||||||
Amount claimed in arbitration | $ 190,000 | ||||||||
Amount awarded in arbitration | $ 177,000 | ||||||||
Insurance recoveries | $ 6,700 | $ 100,500 | |||||||
Charge to earnings related to legal proceedings | $ 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 (in years) | 10 years | ||||||||
Redes | Telecommunication Networks Construction and Operation | Project Contract Termination | |||||||||
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 | 1 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2024 USD ($) | Oct. 31, 2020 a | |
Loss Contingencies [Line Items] | |||
Damaged land (in acres) | a | 13,000 | ||
Time of pole replacement before fire | 19 months | ||
Loss contingency accrual | $ | $ 0 |
Commitments and Contingencies_3
Commitments and Contingencies - Insurance (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Commitment And Contingencies [Line Items] | ||
Insurance and other non-current liabilities | $ 669,812 | $ 636,250 |
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 | 371,000 | 351,700 |
Insurance and other non-current liabilities | 237,000 | 229,200 |
Related insurance recoveries/receivables | 5,500 | 4,900 |
Related insurance recoveries/receivables included in prepaid expenses and other current assets | 900 | 300 |
Long-term insurance receivables | $ 4,600 | $ 4,600 |
Commitments and Contingencies_4
Commitments and Contingencies - Bonds and Parent Guarantees (Details) $ in Billions | Mar. 31, 2024 USD ($) |
Performance Bonds | |
Guarantor Obligations [Line Items] | |
Total amount of outstanding performance bonds | $ 8.1 |
Commitments and Contingencies_5
Commitments and Contingencies - Capital Commitments and Other Committed Expenditures (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Outstanding capital commitments associated with investments | $ 64.2 |
Vehicle Fleet Committed Capital | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Estimated committed, remainder of fiscal year | $ 133.7 |
Detail of Certain Accounts - Ad
Detail of Certain Accounts - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Cash equivalents | $ 161.1 | $ 610.8 |
Accumulated depreciation on property and equipment | 1,850 | 1,820 |
Accumulated amortization on other intangible assets | 1,370 | 1,310 |
Foreign Countries | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 223.2 | $ 245.7 |
Detail of Certain Accounts - Ca
Detail of Certain Accounts - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 531,056 | $ 1,290,248 | $ 217,115 | $ 428,505 |
Cash and cash equivalents held by domestic joint ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 88,264 | 41,427 | ||
Cash and cash equivalents held by foreign joint ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 10,192 | 10,968 | ||
Total cash and cash equivalents held by joint ventures | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 98,456 | 52,395 | ||
Cash and cash equivalents held by captive insurance company | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 18,766 | 19,088 | ||
Cash and cash equivalents not held by joint ventures or captive insurance company | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 413,834 | $ 1,218,765 |
Detail of Certain Accounts - Ac
Detail of Certain Accounts - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable, trade | $ 1,848,562 | $ 2,027,588 |
Accrued compensation and related expenses | 393,990 | 526,221 |
Other accrued expenses | 514,994 | 507,433 |
Accounts payable and accrued expenses | $ 2,757,546 | $ 3,061,242 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Cash, Cash Equivalents and Restricted Cash [Line Items] | ||||
Cash and cash equivalents | $ 531,056 | $ 1,290,248 | $ 217,115 | $ 428,505 |
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows | 533,381 | 1,295,041 | 224,124 | 433,214 |
Prepaid Expenses and Other Current Assets | ||||
Cash, Cash Equivalents and Restricted Cash [Line Items] | ||||
Restricted cash and cash equivalents | 1,097 | 3,652 | 6,059 | 3,759 |
Other Assets | ||||
Cash, Cash Equivalents and Restricted Cash [Line Items] | ||||
Restricted cash and cash equivalents | $ 1,228 | $ 1,141 | $ 950 | $ 950 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Supplemental Cash Flow Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used by operating leases | $ (25,909) | $ (23,627) |
Operating cash flows used by finance leases | (722) | (28) |
Financing cash flows used by finance leases | (2,100) | (422) |
Lease assets obtained in exchange for lease liabilities: | ||
Operating leases | 28,255 | 30,876 |
Finance leases | 362 | 13,277 |
Lease financing transaction assets obtained in exchange for lease financing transaction liabilities | $ 25,616 | $ 2,237 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Additional Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ (29,006) | $ (17,606) |
Income taxes paid | (22,240) | (17,386) |
Income tax refunds | $ 790 | $ 1,266 |
Supplemental Cash Flow Inform_6
Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Supplemental Cash Flow Elements [Abstract] | ||
Accrued capital expenditures | $ 33.6 | $ 20.5 |