Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 23, 2015 | Jun. 30, 2014 |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PWR | ||
Entity Registrant Name | QUANTA SERVICES INC | ||
Entity Central Index Key | 1050915 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 204,133,234 | ||
Entity Public Float | $7.30 | ||
Series F Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1 | ||
Series G Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1 | ||
Exchangeable Shares Associated with Series F Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,500,000 | ||
Exchangeable Shares Associated with Series G Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 899,858 | ||
Exchangeable Shares Not Associated with Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,926,113 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $190,515 | $488,777 |
Accounts receivable, net of allowances of $6,174 and $5,215 | 1,812,539 | 1,439,115 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 290,447 | 213,478 |
Inventories | 38,921 | 31,877 |
Prepaid expenses and other current assets | 221,554 | 140,071 |
Total current assets | 2,553,976 | 2,313,318 |
Property and equipment, net of accumulated depreciation of $739,545 and $631,939 | 1,480,128 | 1,205,608 |
Other assets, net | 85,842 | 285,725 |
Other intangible assets, net of accumulated amortization of $255,858 and $223,355 | 260,593 | 207,877 |
Goodwill | 1,931,485 | 1,780,717 |
Total assets | 6,312,024 | 5,793,245 |
Current Liabilities: | ||
Current maturities of long-term debt and short-term borrowings | 8,876 | 1,181 |
Accounts payable and accrued expenses | 877,336 | 802,180 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 251,113 | 239,106 |
Total current liabilities | 1,137,325 | 1,042,467 |
Long-term debt and notes payable, net of current maturities | 72,489 | 1,053 |
Deferred income taxes | 300,516 | 244,256 |
Insurance and other non-current liabilities | 276,154 | 264,150 |
Total liabilities | 1,786,484 | 1,551,926 |
Commitments and Contingencies | ||
Equity: | ||
Common stock, value | 2 | 2 |
Additional paid-in capital | 3,592,906 | 3,416,585 |
Retained earnings | 1,366,791 | 1,070,077 |
Accumulated other comprehensive income (loss) | -123,290 | -37,236 |
Treasury stock, 15,374,866 and 12,026,030 common shares, at cost | -321,936 | -215,240 |
Total stockholders' equity | 4,514,473 | 4,234,188 |
Non-controlling interests | 11,067 | 7,131 |
Total equity | 4,525,540 | 4,241,319 |
Total liabilities and equity | 6,312,024 | 5,793,245 |
Exchangeable Shares [Member] | ||
Equity: | ||
Common stock, value | 0 | |
Series F Preferred Stock [Member] | ||
Equity: | ||
Preferred Stock, value | 0 | |
Series G Preferred Stock [Member] | ||
Equity: | ||
Preferred Stock, value | $0 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowances on accounts receivable, current | $6,174 | $5,215 |
Accumulated depreciation on property and equipment | 739,545 | 631,939 |
Accumulated amortization on other intangible assets | $255,858 | $223,355 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 226,194,656 | 224,968,797 |
Common stock, shares outstanding | 210,819,790 | 212,942,767 |
Treasury stock, common shares | 15,374,866 | 12,026,030 |
Exchangeable Shares [Member] | ||
Exchangeable Shares, par value | $0 | $0 |
Common stock, shares issued | 7,325,971 | 3,500,000 |
Common stock, shares outstanding | 7,325,971 | 3,500,000 |
Series F Preferred Stock [Member] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 1 | 1 |
Preferred stock, shares issued | 1 | 1 |
Preferred stock, shares outstanding | 1 | 1 |
Series G Preferred Stock [Member] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 1 | 0 |
Preferred stock, shares issued | 1 | 0 |
Preferred stock, shares outstanding | 1 | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenues | $7,851,250 | $6,522,842 | $5,920,269 |
Cost of services (including depreciation) | 6,617,730 | 5,467,389 | 4,982,562 |
Gross profit | 1,233,520 | 1,055,453 | 937,707 |
Selling, general and administrative expenses | 722,038 | 501,010 | 434,894 |
Amortization of intangible assets | 35,907 | 27,515 | 37,691 |
Operating income | 475,575 | 526,928 | 465,122 |
Interest expense | -4,765 | -2,668 | -3,746 |
Interest income | 3,741 | 3,380 | 1,471 |
Equity in earnings (losses) of unconsolidated affiliates, including gain on sale of investment | -332 | 112,744 | 2,084 |
Other income (expense), net | -1,102 | -1,135 | -351 |
Income from continuing operations before income taxes | 473,117 | 639,249 | 464,580 |
Provision for income taxes | 157,408 | 217,940 | 158,859 |
Net income from continuing operations | 315,709 | 421,309 | 305,721 |
Income (loss) from discontinued operations, net of taxes | -627 | 16,935 | |
Net income | 315,082 | 421,309 | 322,656 |
Less: Net income attributable to non-controlling interests | 18,368 | 19,388 | 16,027 |
Net income attributable to common stock | 296,714 | 401,921 | 306,629 |
Amounts attributable to common stock: | |||
Net income from continuing operations | 297,341 | 401,921 | 289,694 |
Net income (loss) from discontinued operations | -627 | 16,935 | |
Net income attributable to common stock | $296,714 | $401,921 | $306,629 |
Earnings per share attributable to common stock - basic and diluted: | |||
Continuing operations | $1.35 | $1.87 | $1.36 |
Discontinued operations | $0.08 | ||
Net income attributable to common stock | $1.35 | $1.87 | $1.44 |
Shares used in computing earnings per share: | |||
Weighted average basic shares outstanding | 219,668 | 214,929 | 212,777 |
Weighted average diluted shares outstanding | 219,690 | 214,978 | 212,835 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $315,082 | $421,309 | $322,656 |
Other comprehensive income (loss), net of tax provision: | |||
Foreign currency translation adjustment, net of tax of $0, $0 and $0 | -84,505 | -54,553 | 13,949 |
Other, net of tax of $486, $(934) and $69 | -1,549 | 2,864 | -206 |
Other comprehensive income (loss) | -86,054 | -51,689 | 13,743 |
Comprehensive income | 229,028 | 369,620 | 336,399 |
Less: Comprehensive income attributable to non-controlling interests | 18,368 | 19,388 | 16,027 |
Total comprehensive income attributable to Quanta stockholders | $210,660 | $350,232 | $320,372 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax | $0 | $0 | $0 |
Other comprehensive income other tax | $486 | ($934) | $69 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities of Continuing Operations: | |||
Net income | $315,082 | $421,309 | $322,656 |
(Income) loss from discontinued operations | 627 | -16,935 | |
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations - | |||
Depreciation | 158,110 | 134,110 | 120,303 |
Amortization of intangible assets | 35,907 | 27,515 | 37,691 |
Equity in (earnings) losses of unconsolidated affiliates, including gain on sale of investment | 332 | -112,744 | -2,084 |
Amortization of debt issuance costs | 1,094 | 1,081 | 904 |
Amortization of deferred revenues | -10,087 | -9,025 | -10,149 |
Gain on sale of property and equipment | -1,770 | -2,448 | -970 |
Foreign currency loss | 1,244 | 2,179 | 691 |
Provision for doubtful accounts | 1,411 | 3,236 | 3,693 |
Provision for contract receivable | 102,460 | ||
Non-cash portion of arbitration expense | 10,518 | ||
Deferred income tax provision (benefit) | 33,664 | -16,470 | 22,533 |
Non-cash stock-based compensation | 39,030 | 35,876 | 25,990 |
Tax impact of stock-based equity awards | -1,563 | -3,723 | -297 |
Changes in operating assets and liabilities, net of non-cash transactions - | |||
Accounts and notes receivable | -231,974 | -74,249 | -341,825 |
Costs and estimated earnings in excess of billings on uncompleted contracts | -53,428 | -47,281 | -150,486 |
Inventories | -4,025 | 5,986 | 26,435 |
Prepaid expenses and other current assets | -36,484 | -7,505 | -12,599 |
Accounts payable and accrued expenses and other non-current liabilities | -49,894 | 36,015 | 123,143 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 5,699 | 48,849 | 26,624 |
Other, net | -5,129 | 3,881 | -8,479 |
Net cash provided by operating activities of continuing operations | 310,824 | 446,592 | 166,839 |
Cash Flows from Investing Activities of Continuing Operations: | |||
Proceeds from sale of property and equipment | 14,428 | 14,794 | 12,362 |
Additions of property and equipment | -301,476 | -263,558 | -209,445 |
Cash paid for acquisitions, net of cash acquired | -262,218 | -283,837 | -68,727 |
Investments in and return of equity from unconsolidated affiliates | -3,127 | 186,185 | -53,750 |
Cash received from (paid for) other investments | 6,214 | -10,032 | |
Cash withdrawn from restricted cash | 3,565 | 36,482 | |
Cash paid for other intangibles | -252 | -1,541 | |
Net cash used in investing activities of continuing operations | -542,866 | -319,966 | -321,101 |
Cash Flows from Financing Activities of Continuing Operations: | |||
Borrowings under credit facility | 938,047 | 341,730 | 1,052,700 |
Payments under credit facility | -866,224 | -341,730 | -1,052,700 |
Borrowings of other long-term debt | 394 | 23 | |
Payments on other long-term debt | -30,448 | -556 | -56 |
Borrowings of short-term debt | 5,056 | ||
Debt issuance and amendment costs | -3,244 | ||
Distributions to non-controlling interests | -14,432 | -17,625 | -17,970 |
Tax impact of stock-based equity awards | 1,563 | 3,723 | 297 |
Exercise of stock options | 1,179 | 1,028 | 2,385 |
Repurchase of common stock | -93,482 | ||
Net cash used in financing activities of continuing operations | -58,347 | -16,651 | -15,344 |
Discontinued operations: | |||
Net cash used in operating activities | -60,622 | ||
Net cash provided by investing activities | 307,522 | ||
Net cash provided by discontinued operations | 246,900 | ||
Effect of foreign exchange rate changes on cash and cash equivalents | -7,873 | -15,899 | 2,058 |
Net increase (decrease) in cash and cash equivalents | -298,262 | 94,076 | 79,352 |
Cash and cash equivalents, beginning of year | 488,777 | 394,701 | 315,349 |
Cash and cash equivalents, end of year | 190,515 | 488,777 | 394,701 |
Supplemental disclosure of cash flow information: | |||
Interest paid | -3,533 | -1,586 | -2,734 |
Income taxes paid | -229,187 | -253,175 | -155,494 |
Income tax refunds | $7,376 | $1,826 | $4,106 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Common Stock [Member] | Exchangeable Shares [Member] | Series F Preferred Stock [Member] | Series G Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total Stockholders' Equity [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||
Balance at Dec. 31, 2011 | $3,389,263 | $2 | $3,216,206 | $361,527 | $710 | ($196,493) | $3,381,952 | $7,311 | |||
Balance, Shares at Dec. 31, 2011 | 206,203,005 | 3,909,110 | 1 | ||||||||
Other comprehensive income (loss) | 13,743 | 13,743 | 13,743 | ||||||||
Acquisitions | 37,291 | 37,291 | 37,291 | ||||||||
Acquisitions, shares | 1,927,113 | ||||||||||
Restricted stock activity | 24,845 | 31,501 | -6,656 | 24,845 | |||||||
Restricted stock activity, shares | 915,816 | ||||||||||
Stock options exercised | 2,385 | 2,385 | 2,385 | ||||||||
Stock options exercised, shares | 224,652 | ||||||||||
Income tax benefit (expense) from long-term incentive plans | -297 | -297 | -297 | ||||||||
Distributions to non-controlling interests | -17,970 | -17,970 | |||||||||
Net income | 322,656 | 306,629 | 306,629 | 16,027 | |||||||
Balance at Dec. 31, 2012 | 3,771,916 | 2 | 3,287,086 | 668,156 | 14,453 | -203,149 | 3,766,548 | 5,368 | |||
Balance, Shares at Dec. 31, 2012 | 209,270,586 | 3,909,110 | 1 | ||||||||
Other comprehensive income (loss) | -51,689 | -51,689 | -51,689 | ||||||||
Acquisitions | 88,896 | 88,896 | 88,896 | ||||||||
Acquisitions, shares | 3,547,482 | ||||||||||
Restricted stock activity | 23,785 | 35,876 | -12,091 | 23,785 | |||||||
Restricted stock activity, shares | -358,753 | ||||||||||
Stock options exercised | 1,028 | 1,028 | 1,028 | ||||||||
Stock options exercised, shares | 74,342 | ||||||||||
Exchange of exchangeable shares | 409,110 | -409,110 | |||||||||
Income tax benefit (expense) from long-term incentive plans | 3,699 | 3,699 | 3,699 | ||||||||
Distributions to non-controlling interests | -17,625 | -17,625 | |||||||||
Net income | 421,309 | 401,921 | 401,921 | 19,388 | |||||||
Balance at Dec. 31, 2013 | 4,241,319 | 2 | 3,416,585 | 1,070,077 | -37,236 | -215,240 | 4,234,188 | 7,131 | |||
Balance, Shares at Dec. 31, 2013 | 212,942,767 | 3,500,000 | 1 | ||||||||
Other comprehensive income (loss) | -86,054 | -86,054 | -86,054 | ||||||||
Acquisitions | 134,538 | 134,538 | 134,538 | ||||||||
Acquisitions, shares | 686,382 | 3,825,971 | 1 | ||||||||
Restricted stock activity | 26,690 | 39,030 | -12,340 | 26,690 | |||||||
Restricted stock activity, shares | 95,475 | ||||||||||
Stock options exercised | 1,179 | 1,179 | 1,179 | ||||||||
Stock options exercised, shares | 91,444 | ||||||||||
Income tax benefit (expense) from long-term incentive plans | 700 | 700 | 700 | ||||||||
Common stock repurchases | -93,482 | -93,482 | -93,482 | ||||||||
Common stock repurchases, shares | -2,996,278 | ||||||||||
Deferral plan shares | 874 | -874 | |||||||||
Distributions to non-controlling interests | -14,432 | -14,432 | |||||||||
Net income | 315,082 | 296,714 | 296,714 | 18,368 | |||||||
Balance at Dec. 31, 2014 | $4,525,540 | $2 | $3,592,906 | $1,366,791 | ($123,290) | ($321,936) | $4,514,473 | $11,067 | |||
Balance, Shares at Dec. 31, 2014 | 210,819,790 | 7,325,971 | 1 | 1 |
Business_and_Organization
Business and Organization | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Business and Organization | 1 | BUSINESS AND ORGANIZATION: |
Quanta Services, Inc. (Quanta) is a leading provider of specialty contracting services, offering infrastructure solutions primarily to the electric power and oil and gas industries in the United States, Canada and Australia and select other international markets. Quanta reports its results under three reportable segments: (1) Electric Power Infrastructure Services, (2) Oil and Gas Infrastructure Services and (3) Fiber Optic Licensing and Other. | ||
Electric Power Infrastructure Services Segment | ||
The Electric Power Infrastructure Services segment provides comprehensive network solutions to customers in the electric power industry. Services performed by the Electric Power Infrastructure Services segment generally include the design, installation, upgrade, repair and maintenance of electric power transmission and distribution infrastructure and substation facilities along with other engineering and technical services. This segment also provides emergency restoration services, including the repair of infrastructure damaged by inclement weather, the energized installation, maintenance and upgrade of electric power infrastructure utilizing unique bare hand and hot stick methods and Quanta’s proprietary robotic arm technologies, and the installation of “smart grid” technologies on electric power networks. In addition, this segment designs, installs and maintains renewable energy generation facilities, consisting of solar, wind and certain types of natural gas generation facilities, and related switchyards and transmission infrastructure to transport power to demand centers. To a lesser extent, this segment provides services such as the construction of electric power generation facilities, the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of cable and control systems for light rail lines. | ||
Oil and Gas Infrastructure Services Segment | ||
The Oil and Gas Infrastructure Services segment provides comprehensive network solutions to customers involved in the development and transportation of natural gas, oil and other pipeline products. Services performed by the Oil and Gas Infrastructure Services segment generally include the design, installation, repair and maintenance of pipeline transmission and distribution systems, gathering systems, production systems and compressor and pump stations, as well as related trenching, directional boring and automatic welding services. In addition, this segment’s services include pipeline protection, integrity testing, rehabilitation and replacement and fabrication of pipeline support systems and related structures and facilities. Quanta also serves the offshore and inland water energy markets, primarily providing services to oil and gas exploration platforms, including mechanical installation (or “hook-ups”), electrical and instrumentation, pre-commissioning and commissioning, coatings, fabrication, pipeline construction, integrity services and marine asset repair. To a lesser extent, this segment designs, installs and maintains fueling systems as well as water and sewer infrastructure. | ||
Fiber Optic Licensing and Other Segment | ||
The Fiber Optic Licensing and Other segment designs, procures, constructs, maintains and owns fiber optic telecommunications infrastructure in select markets and licenses the right to use these point-to-point fiber optic telecommunications facilities to its customers pursuant to licensing agreements, typically with terms from five to twenty-five years, inclusive of certain renewal options. Under those agreements, customers are provided the right to use a portion of the capacity of a fiber optic network, with the network owned and maintained by Quanta. Additionally, the Fiber Optic Licensing and Other segment provides lit services, with Quanta providing network management services to customers, as well as owning the electronic equipment necessary to make the fiber optic network operational. This segment serves customers in multiple institutional sectors, including communications carriers as well as education, financial services, healthcare and other business enterprises with high bandwidth telecommunication needs. The telecommunication services provided through this segment are subject to regulation by the Federal Communications Commission and certain state public utility commissions. The Fiber Optic Licensing and Other segment also provides various telecommunication infrastructure services on a limited and ancillary basis, primarily to Quanta’s customers in the electric power industry. | ||
Acquisitions | ||
During 2014, Quanta completed nine acquisitions, which enabled Quanta to further enhance its electric power and oil and gas infrastructure service offerings in the United States and Canada and expand its capabilities in Australia to include electric power infrastructure service offerings. These acquisitions included four electric power infrastructure services companies located in Canada; two oil and gas infrastructure services businesses located in Canada; an electric power infrastructure services company located in Australia; a U.S. based general engineering and construction company specializing in hydrant fueling, waterfront and utility construction for the U.S. Department of Defense that is generally included in Quanta’s Oil and Gas Infrastructure Services segment; and a geotechnical and geological engineering services company based in the United States that is generally included in Quanta’s Electric Power Infrastructure Services segment. During 2013, Quanta acquired six businesses, which included three electric power infrastructure services companies and three oil and gas infrastructure services companies based throughout the United States, Canada and Australia. During 2012, Quanta acquired four businesses, which included one electric power infrastructure services company based in Canada, two electric power infrastructure services companies based in the United States and one oil and gas infrastructure services company based in the United States. | ||
Dispositions | ||
On December 3, 2012, Quanta sold substantially all of its domestic telecommunications infrastructure services operations and related subsidiaries for net proceeds of approximately $265.0 million. Accordingly, Quanta has presented the results of operations, financial position and cash flows of such telecommunications subsidiaries as discontinued operations for all applicable periods presented in the accompanying consolidated financial statements. See Note 4 for more information. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | |||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements of Quanta include the accounts of Quanta Services, Inc. and its wholly owned subsidiaries, which are also referred to as its operating units. The consolidated financial statements also include the accounts of certain of Quanta’s investments in joint ventures, which are either consolidated or proportionately consolidated, as discussed in the following summary of significant accounting policies. Investments in affiliated entities in which Quanta does not have a controlling financial interest, but over which Quanta has significant influence, usually because Quanta holds a voting interest of between 20% and 50%, are accounted for using the equity method. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, references to Quanta include Quanta Services, Inc. and its consolidated subsidiaries. | |||||||||||||
Use of Estimates and Assumptions | |||||||||||||
The preparation of financial statements in conformity with US GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses recognized during the periods presented. Quanta reviews all significant estimates affecting its consolidated financial statements on a recurring basis and records the effect of any necessary adjustments prior to their publication. Judgments and estimates are based on Quanta’s beliefs and assumptions derived from information available at the time such judgments and estimates are made. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements. Estimates are primarily used in Quanta’s assessment of the allowance for doubtful accounts, valuation of inventory, useful lives of assets, fair value assumptions in analyzing goodwill, other intangibles and long-lived asset impairments, equity and other investments, loan receivables, purchase price allocations, liabilities for self-insured and other claims and guarantees, multi-employer pension plan withdrawal liabilities, revenue recognition for construction contracts inclusive of contractual change orders and claims, revenue recognition for fiber optic licensing, share-based compensation, operating results of reportable segments, as well as the provision for income taxes and the calculation of uncertain tax positions. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Quanta had cash and cash equivalents of $190.5 million and $488.8 million as of December 31, 2014 and 2013. Cash consisting of interest-bearing demand deposits is carried at cost, which approximates fair value. Quanta considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents, which are carried at fair value. At December 31, 2014 and 2013, cash equivalents were $107.6 million and $247.8 million and consisted primarily of money market mutual funds and are discussed further in Fair Value Measurements below. As of December 31, 2014 and 2013, cash and cash equivalents held in domestic bank accounts were approximately $127.2 million and $236.7 million, and cash and cash equivalents held in foreign bank accounts were approximately $63.3 million and $252.1 million. As of December 31, 2014 and 2013, cash and cash equivalents held by Quanta’s investments in joint ventures, which are either consolidated or proportionately consolidated, were approximately $19.1 million and $18.9 million. Quanta has no rights with respect to the joint ventures’ cash except as permitted pursuant to their respective partnership agreements. | |||||||||||||
Current and Long-Term Accounts and Notes Receivable and Allowance for Doubtful Accounts | |||||||||||||
Quanta provides an allowance for doubtful accounts when collection of an account or note receivable is considered doubtful, and receivables are written off against the allowance when deemed uncollectible. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates regarding, among other factors, the customer’s access to capital, the customer’s willingness or ability to pay, general economic and market conditions, the ongoing relationship with the customer and uncertainties related to the resolution of disputed matters. Quanta considers accounts receivable delinquent after 30 days but does not generally include delinquent accounts in its analysis of the allowance for doubtful accounts unless the accounts receivable have been outstanding for at least 90 days. In addition to balances that have been outstanding for 90 days or more, Quanta also includes accounts receivable balances that relate to customers in bankruptcy or with other known difficulties in its analysis of the allowance for doubtful accounts. Material changes in Quanta’s customers’ business or cash flows, which may be impacted by negative economic and market conditions, could affect Quanta’s ability to collect amounts due from them. As of December 31, 2014 and 2013, Quanta had allowances for doubtful accounts on current receivables of approximately $6.2 million and $5.2 million. | |||||||||||||
Long-term accounts receivable are included within other assets, net on the consolidated balance sheets. Within this balance at December 31, 2013 was a long-term contract receivable previously recorded in the amount of approximately $165 million attributable to recognized contract price adjustments related to a change order from the Sunrise Powerlink project, an electric power infrastructure services project completed in 2012 by PAR Electrical Contractors, Inc. (PAR), a wholly owned subsidiary of Quanta, for San Diego Gas and Electric Company (SDG&E). This receivable was the subject of a recently settled arbitration proceeding discussed further in Legal Proceedings — Sunrise Powerlink Arbitration in Note 15. In December 2014, the parties reached an agreement to settle the arbitration under terms providing for a cash payment by SDG&E to PAR in the amount of $65 million, representing the final amount to compensate PAR for substantially all of the unpaid portion of its costs incurred on the project. Accordingly, a provision of $102.5 million was recognized in 2014 as a charge to selling, general and administrative expense, and the remaining balance of $65 million was reclassified to accounts receivable, leaving no balance remaining in other assets, net related to the Sunrise Powerlink project as of December 31, 2014. Payment was received in January 2015, and the arbitration was dismissed shortly thereafter. | |||||||||||||
Should customers experience financial difficulties or file for bankruptcy, or should anticipated recoveries relating to receivables in existing bankruptcies or other workout situations fail to materialize, Quanta could experience reduced cash flows and losses in excess of current allowances provided. | |||||||||||||
The balances billed but not paid by customers pursuant to retainage provisions in certain contracts are generally due upon completion of the contracts and acceptance by the customer. Based on Quanta’s experience with similar contracts in recent years, the majority of the retainage balances at each balance sheet date are expected to be collected within the next twelve months. Current retainage balances as of December 31, 2014 and 2013 were approximately $307.3 million and $194.5 million and were included in accounts receivable. Retainage balances with settlement dates beyond the next twelve months were included in other assets, net, and as of December 31, 2014 and 2013 were $19.6 million and $50.8 million. | |||||||||||||
Within accounts receivable, Quanta recognizes unbilled receivables in 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; costs have been incurred but are yet to be billed under cost-reimbursement type contracts; or amounts arise from routine lags in billing (for example, work completed one month but not billed until the next month). These balances do not include revenues accrued for work performed under fixed-price contracts as these amounts are recorded as costs and estimated earnings in excess of billings on uncompleted contracts. At December 31, 2014 and 2013, the balances of unbilled receivables included in accounts receivable were approximately $165.5 million and $179.2 million. | |||||||||||||
Inventories | |||||||||||||
Inventories consist primarily of parts and supplies held for use in the ordinary course of business, which are valued by Quanta at the lower of cost or market as determined by using either the first-in, first-out (FIFO) method or the average costing method. Inventories also include certain job specific materials not yet installed which are valued using the specific identification method. | |||||||||||||
Property and Equipment | |||||||||||||
Property and equipment are stated at cost, and depreciation is computed using the straight-line method, net of estimated salvage values, over the estimated useful lives of the assets. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Depreciation expense related to property and equipment was approximately $158.1 million, $134.1 million and $120.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Quanta capitalizes costs associated with internally developed or constructed assets primarily associated with fiber optic licensing networks. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use assets, as well as payroll and payroll-related expenses for employees who are directly associated with and devote time to placing the assets into service. Capitalization of such costs is recorded to construction work-in-process beginning when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose, at which point in time the asset is placed into service. As of December 31, 2014 and 2013, approximately $30.6 million and $32.4 million related to fiber optic licensing networks were recorded in construction work-in-process. These capitalized costs are depreciated on a straight-line basis over the economic useful life of the asset, beginning when the asset is ready for its intended use. Accrued capital expenditures were $11.8 million and $0.6 million as of December 31, 2014 and 2013, and the impact of these items has been excluded from Quanta’s capital expenditures on its consolidated statements of cash flows due to their non-cash nature. | |||||||||||||
Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing equipment, are capitalized and depreciated over the adjusted remaining useful lives of the assets. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in selling, general and administrative expenses. | |||||||||||||
Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be realizable. Although no such events occurred during the years ended December 31, 2014, 2013 and 2012, if an evaluation is required, management would assess whether the carrying value of the asset group is recoverable by comparing the sum of the undiscounted cash flows to the carrying value of the asset group. If the asset is not recoverable, management compares the estimated fair value of the asset to the asset’s carrying amount to determine if an impairment of such asset is necessary. The effect of any impairment would be to expense the difference between the fair value of such asset and its carrying value in the period incurred. | |||||||||||||
Other Assets, Net | |||||||||||||
Other assets, net consists primarily of long-term receivables, debt issuance costs, non-current inventory, equity and other investments, refundable security deposits for leased properties and insurance claims in excess of deductibles that are due from Quanta’s insurers. Included in the long-term receivables balance at December 31, 2013 was approximately $165 million related to the Sunrise Powerlink project. In 2014, Quanta recorded $102.5 million to provision for long-term contract receivable associated with the Sunrise Powerlink project receivable. The remaining balance of $65 million was reclassified to accounts receivable in the fourth quarter of 2014 as a result of the settlement of the arbitration in December 2014 and collection of the receivable in January 2015. Accordingly, as of December 31, 2014, there was no balance remaining in other assets, net related to the Sunrise Powerlink project. For additional information on this receivable and the associated arbitration proceeding, see Legal Proceedings — Sunrise Powerlink Arbitration in Note 15. | |||||||||||||
Debt Issuance Costs | |||||||||||||
Capitalized debt issuance costs related to Quanta’s credit facility and any other debt outstanding at a given balance sheet date are included in other assets, net and are amortized into interest expense on a straight-line basis over the terms of the respective agreements giving rise to the debt issuance costs, which Quanta believes approximates the effective interest rate method. During 2013, Quanta incurred $3.2 million of debt issuance costs related to the amendment and restatement of its credit agreement and recorded $0.2 million of charges to interest expense for the write-off of a portion of the debt issuance costs related to the prior facilities. As of December 31, 2014 and 2013, capitalized debt issuance costs were $7.6 million, with accumulated amortization of $3.5 million and $2.4 million. For the years ended December 31, 2014, 2013 and 2012, amortization expense related to capitalized debt issuance costs was $1.1 million, $1.1 million and $0.9 million, respectively. | |||||||||||||
Goodwill and Other Intangibles | |||||||||||||
Quanta has recorded goodwill in connection with its historical acquisitions of companies. Upon acquisition, these companies have been either combined into one of Quanta’s existing operating units or managed on a stand-alone basis as an individual operating unit. Goodwill recorded in connection with these acquisitions is subject to an annual assessment for impairment, which Quanta performs at the operating unit level for each operating unit that carries a balance of goodwill. Each of Quanta’s operating units is organized into one of three internal divisions: the Electric Power Division, the Oil and Gas Infrastructure Division or the Fiber Optic Licensing Division. As most of the companies acquired by Quanta provide multiple types of services for multiple types of customers, these divisional designations are based on the predominant type of work performed by each operating unit at the point in time the divisional designation is made. Goodwill is required to be measured for impairment at the reporting unit level, which represents the operating segment level or one level below the operating segment level for which discrete financial information is available. Quanta has determined that its individual operating units represent its reporting units for the purpose of assessing goodwill impairments. | |||||||||||||
Quanta has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step fair value-based impairment test described below. If Quanta believes that, as a result of its qualitative assessment, it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. Quanta can choose to perform the qualitative assessment on none, some or all of its reporting units. Quanta can also bypass the qualitative assessment for any reporting unit in any period and proceed directly to step one of the impairment test, and then resume performing the qualitative assessment in any subsequent period. Qualitative indicators including deterioration in macroeconomic conditions, declining financial performance, or a sustained decrease in share price, among other things, may trigger the need for annual or interim impairment testing of goodwill associated with one or all of the reporting units. | |||||||||||||
Quanta’s goodwill impairment assessment is performed at year-end, or more frequently if events or circumstances arise which indicate that goodwill may be impaired. For instance, a decrease in Quanta’s market capitalization below book value, a significant change in business climate or loss of a significant customer, as well as the qualitative indicators referenced above, may trigger the need for interim impairment testing of goodwill for one or all of its reporting units. The first step of the two-step fair value-based test involves comparing the fair value of each of Quanta’s reporting units with its carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the second step is performed. The second step compares the carrying amount of the reporting unit’s goodwill to the implied fair value of its goodwill. If the implied fair value of goodwill is less than the carrying amount, an impairment loss would be recorded as a reduction to goodwill with a corresponding charge to operating expense. | |||||||||||||
Quanta determines the fair value of its reporting units using a weighted combination of the discounted cash flow, market multiple and market capitalization valuation approaches, with heavier weighting on the discounted cash flow method, as in management’s opinion, this method currently results in the most accurate calculation of a reporting unit’s fair value. Determining the fair value of a reporting unit requires judgment and the use of significant estimates and assumptions. Such estimates and assumptions include revenue growth rates, operating margins, discount rates, weighted average costs of capital and future market conditions, among others. Quanta believes the estimates and assumptions used in its impairment assessments are reasonable and based on available market information, but variations in any of the assumptions could result in materially different calculations of fair value and determinations of whether or not an impairment is indicated. | |||||||||||||
Under the discounted cash flow method, Quanta determines fair value based on the estimated future cash flows of each reporting unit, discounted to present value using risk-adjusted industry discount rates, which reflect the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. Cash flow projections are derived from budgeted amounts and operating forecasts (typically a one-year model) plus an estimate of later period cash flows, all of which are evaluated by management. Subsequent period cash flows are developed for each reporting unit using growth rates that management believes are reasonably likely to occur, along with a terminal value derived from the reporting unit’s earnings before interest, taxes, depreciation and amortization (EBITDA). The EBITDA multiples for each reporting unit are based on trailing twelve-month comparable industry data. | |||||||||||||
Under the market multiple and market capitalization approaches, Quanta determines the estimated fair value of each of its reporting units by applying transaction multiples to each reporting unit’s projected EBITDA and then averaging that estimate with similar historical calculations using either a one, two or three year average. For the market capitalization approach, Quanta adds a reasonable control premium, which is estimated as the premium that would be received in a sale of the reporting unit in an orderly transaction between market participants. | |||||||||||||
The projected cash flows and estimated levels of EBITDA by reporting unit were used to determine fair value under the three approaches discussed herein. The following table presents the significant estimates used by management in determining the fair values of Quanta’s reporting units at December 31, 2014, 2013 and 2012: | |||||||||||||
Operating Units Providing | Operating Unit Providing | ||||||||||||
Predominantly Electric Power and | Fiber Optic Licensing | ||||||||||||
Oil and Gas Infrastructure Services | |||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||
Years of cash flows before terminal value | 5 | 5 | 5 | 15 | 15 | 15 | |||||||
Discount rates | 12% to 14% | 12% to 14% | 12% to 13% | 12% | 12% | 12% | |||||||
EBITDA multiples | 5.0 to 6.0 | 5.0 to 8.0 | 4.5 to 8.0 | 9.5 | 9.5 | 9.5 | |||||||
Weighting of three approaches: | |||||||||||||
Discounted cash flows | 70% | 70% | 70% | 90% | 90% | 90% | |||||||
Market multiple | 15% | 15% | 15% | 5% | 5% | 5% | |||||||
Market capitalization | 15% | 15% | 15% | 5% | 5% | 5% | |||||||
For recently acquired reporting units, a step one impairment test may indicate an implied fair value that is substantially similar to the reporting unit’s carrying value. Such similarities in value are generally an indication that management’s estimates of future cash flows associated with the recently acquired reporting unit remain relatively consistent with the assumptions that were used to derive its initial fair value. | |||||||||||||
During the fourth quarter of 2014, a two-step fair-value based goodwill impairment analysis was performed for each of Quanta’s reporting units, and no reporting units were evaluated solely on a qualitative basis. The analysis indicated that the implied fair value of each of Quanta’s reporting units, other than recently acquired reporting units, was substantially in excess of its carrying value. Following the analysis, management concluded that no impairment was indicated at any reporting unit. As discussed generally above, when evaluating the 2014 step one impairment test results, management considered many factors in determining whether or not an impairment of goodwill for any reporting unit was reasonably likely to occur in future periods, including future market conditions and the economic environment in which Quanta’s reporting units were operating. Additionally, management considered the sensitivity of its fair value estimates to changes in certain valuation assumptions and, after giving consideration to at least a 10% decrease in the fair value of each of Quanta’s reporting units, the results of the assessment at December 31, 2014 did not change. However, circumstances such as market declines, unfavorable economic conditions, the loss of a major customer or other factors could impact the valuation of goodwill in future periods. | |||||||||||||
The goodwill analysis performed for each reporting unit was based on estimates and industry comparables obtained from the electric power, oil and gas and fiber optic licensing industries, and no impairment was indicated. The 15-year discounted cash flow model used for fiber optic licensing is based on the long-term nature of the underlying fiber optic network licensing agreements. | |||||||||||||
Quanta assigned a higher weighting to the discounted cash flow approach in all periods to reflect increased expectations of market value being determined from a “held and used” model. As stated previously, cash flows are derived from budgeted amounts and operating forecasts that have been evaluated by management. In connection with the 2014 assessment, projected annual growth rates by reporting unit varied widely with ranges from 0% to 71% for reporting units in the Electric Power and the Oil and Gas Divisions and 4% to 12% for the reporting unit in the Fiber Optic Licensing Division. | |||||||||||||
Quanta’s intangible assets include customer relationships, backlog, trade names, non-compete agreements, patented rights and developed technology, all subject to amortization, along with other intangible assets not subject to amortization. The value of customer relationships is estimated as of the date a business is acquired based on the value-in-use concept utilizing the income approach, specifically the excess earnings method. The excess earnings analysis consists of discounting to present value the projected cash flows attributable to the customer relationships, with consideration given to customer contract renewals, the importance or lack thereof of existing customer relationships to Quanta’s business plan, income taxes and required rates of return. Quanta values backlog for acquired businesses as of the acquisition date based upon the contractual nature of the backlog within each service line, using the income approach to discount back to present value the cash flows attributable to the backlog. The value of trade names is estimated using the relief-from-royalty method of the income approach. This approach is based on the assumption that in lieu of ownership, a company would be willing to pay a royalty in order to exploit the related benefits of this intangible asset. | |||||||||||||
Quanta amortizes intangible assets based upon the estimated consumption of the economic benefits of each intangible asset, or on a straight-line basis if the pattern of economic benefits consumption cannot otherwise be reliably estimated. Intangible assets subject to amortization are reviewed for impairment and are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For instance, a significant change in business climate or a loss of a significant customer, among other things, may trigger the need for interim impairment testing of intangible assets. An impairment loss would be recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. | |||||||||||||
Investments in Affiliates and Other Entities | |||||||||||||
In the normal course of business, Quanta enters into various types of investment arrangements, each having unique terms and conditions. These investments may include equity interests held by Quanta in business entities, including general or limited partnerships, contractual joint ventures, or other forms of equity participation. These investments may also include Quanta’s participation in different financing structures such as the extension of loans to project specific entities, the acquisition of convertible notes issued by project specific entities, or other strategic financing arrangements. Quanta determines whether such investments involve a variable interest entity (VIE) based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if Quanta is the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities of a VIE that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE, in either case that could potentially be significant to the VIE. When Quanta is deemed to be the primary beneficiary, the VIE is consolidated and the other party’s equity interest in the VIE is accounted for as a non-controlling interest. In cases where Quanta determines that it has an undivided interest in the assets, liabilities, revenues and profits of an unincorporated VIE (e.g., a general partnership interest), such amounts are consolidated on a basis proportional to Quanta’s ownership interest in the unincorporated entity. | |||||||||||||
Investments in entities of which Quanta is not the primary beneficiary, but over which Quanta has the ability to exercise significant influence, are accounted for using the equity method of accounting. Quanta’s share of net income or losses from unconsolidated equity investments is included in equity in earnings (losses) of unconsolidated affiliates in the consolidated statements of operations when applicable. Equity investments are reviewed for impairment by assessing whether any decline in the fair value of the investment below the carrying value is other than temporary. In making this determination, factors such as the ability to recover the carrying amount of the investment and the inability of the investee to sustain an earnings capacity are evaluated in determining whether a loss in value should be recognized. Any impairment losses would be recognized in other expense. Equity method investments are carried at original cost and are included in other assets, net in the consolidated balance sheet and are adjusted for Quanta’s proportionate share of the investees’ income, losses and distributions. | |||||||||||||
On December 6, 2013, Quanta sold all of its equity ownership interest in Howard Midstream Energy Partners, LLC (HEP) for proceeds of approximately $220.9 million, which resulted in a pre-tax gain of approximately $112.7 million. HEP is engaged in the business of owning, operating and constructing midstream plant and pipeline assets in the oil and gas industry. Quanta held an equity ownership interest of approximately 31% in HEP. | |||||||||||||
Revenue Recognition | |||||||||||||
Infrastructure Services — Through its Electric Power Infrastructure Services and Oil and Gas Infrastructure Services segments, Quanta designs, installs and maintains networks for customers in the electric power and oil and gas industries. These services may be provided pursuant to master service agreements, repair and maintenance contracts and fixed price and non-fixed price installation contracts. Pricing under these contracts may be competitive unit price, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis), and the final terms and prices of these contracts are frequently negotiated with the customer. Under unit-based contracts, the utilization of an output-based measurement is appropriate for revenue recognition. Under these contracts, Quanta recognizes revenue as units are completed based on pricing established between Quanta and the customer for each unit of delivery, which best reflects the pattern in which the obligation to the customer is fulfilled. Under cost-plus/hourly and time and materials type contracts, Quanta recognizes revenue on an input basis, as labor hours are incurred and services are performed. | |||||||||||||
Revenues from fixed price contracts are recognized using the percentage-of-completion method, measured by the percentage of costs incurred to date to total estimated costs for each contract. These contracts provide for a fixed amount of revenues for the entire project. Such contracts provide that the customer accept completion of progress to date and compensate Quanta for services rendered, which may be measured in terms of units installed, hours expended or some other measure of progress. Contract costs include all direct materials, labor and subcontract costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Much of the material associated with Quanta’s work is owner-furnished and is therefore not included in contract revenues and costs. The cost estimation process is based on professional knowledge and experience of Quanta’s engineers, project managers and financial professionals. Changes in job performance, job conditions and final contract settlements are factors that influence management’s assessment of total contract value and the total estimated costs to complete those contracts and therefore Quanta’s profit recognition. Changes in these factors may result in revisions to costs and income, and their effects are recognized in the period in which the revisions are determined. These factors are routinely evaluated on a project by project basis throughout the project term, and the impact of corresponding revisions in management’s estimates of contract value, contract cost and contract profit are recorded as necessary in the period in which the revisions are determined. Provisions for losses on uncompleted contracts are made in the period in which such losses are determined to be probable and the amount can be reasonably estimated. Quanta’s operating results for the year ended December 31, 2014 and 2013 were impacted by less than 5% as a result of changes in contract estimates related to projects that were in progress at December 31, 2013 and 2012. | |||||||||||||
The current asset “Costs and estimated earnings in excess of billings on uncompleted contracts” represents revenues recognized in excess of amounts billed for fixed price contracts. The current liability “Billings in excess of costs and estimated earnings on uncompleted contracts” represents billings in excess of revenues recognized for fixed price contracts. | |||||||||||||
Quanta may incur costs subject to change orders, whether approved or unapproved by the customer, and/or claims related to certain contracts. Quanta determines the probability that such costs will be recovered based upon evidence such as past practices with the customer, specific discussions or preliminary negotiations with the customer or verbal approvals. Quanta treats items as a cost of contract performance in the period incurred if it is not probable that the costs will be recovered or will recognize revenue if it is probable that the contract price will be adjusted and can be reliably estimated. | |||||||||||||
As of December 31, 2014 and 2013, Quanta had approximately $106.8 million and $75.5 million of change orders and/or claims that had been included as contract price adjustments on certain contracts which were in the process of being negotiated in the normal course of business. | |||||||||||||
As of December 31, 2013 and throughout most of 2014, Quanta also had previously recognized contract price adjustments related to a change order from the Sunrise Powerlink project of approximately $165 million. In October 2013, PAR initiated arbitration proceedings against SDG&E pursuant to a contractually agreed upon dispute resolution process to collect amounts due for this project. In December 2014, Quanta and SDG&E reached an agreement to settle the arbitration under terms providing for a cash payment by SDG&E in the amount of $65 million, representing the final amount to compensate Quanta/PAR for substantially all of the unpaid portion of costs incurred by Quanta/PAR on the project. As a result, during the third and fourth quarters of 2014, Quanta recorded a provision in the aggregate amount of $102.5 million against the recorded value of this asset. See Legal Proceedings—Sunrise Powerlink Arbitration in Note 15 for additional information. | |||||||||||||
These aggregate contract price adjustments represent management’s best estimate of additional contract revenues which have been earned and which management believes are probable of collection. The amounts ultimately realized by Quanta upon final acceptance by its customers could be higher or lower than such estimated amounts. | |||||||||||||
Fiber Optic Licensing — The fiber optic licensing business constructs and licenses the right to use fiber optic telecommunications facilities to its customers pursuant to licensing agreements, typically with terms from five to twenty-five years, inclusive of certain renewal options. Under those agreements, customers are provided the right to use a portion of the capacity of a fiber optic facility, with the facility owned and maintained by Quanta. Revenues, including any initial fees or advance billings, are recognized ratably over the expected length of the agreements, including probable renewal periods. As of December 31, 2014 and 2013, initial fees and advance billings on these licensing agreements not yet recorded in revenue were $56.5 million and $48.8 million and were recognized as deferred revenue, with $48.2 million and $40.2 million considered to be long-term and included in other non-current liabilities. Minimum future licensing revenues expected to be recognized by Quanta pursuant to these agreements at December 31, 2014 were as follows (in thousands): | |||||||||||||
Minimum | |||||||||||||
Future | |||||||||||||
Licensing | |||||||||||||
Revenues | |||||||||||||
Year Ending December 31 — | |||||||||||||
2015 | $ | 90,549 | |||||||||||
2016 | 74,933 | ||||||||||||
2017 | 62,348 | ||||||||||||
2018 | 48,950 | ||||||||||||
2019 | 32,775 | ||||||||||||
Thereafter | 124,739 | ||||||||||||
Fixed non-cancelable minimum licensing revenues | $ | 434,294 | |||||||||||
Income Taxes | |||||||||||||
Quanta follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the underlying assets or liabilities are recovered or settled. | |||||||||||||
Quanta regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain. The estimation of required valuation allowances includes estimates of future taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Quanta considers projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income differs from these estimates, Quanta may not realize deferred tax assets to the extent estimated. | |||||||||||||
Quanta records reserves for income taxes related to certain tax positions in those instances where Quanta considers it more likely than not that additional taxes may be due in excess of amounts reflected on income tax returns filed. When recording reserves for expected tax consequences of uncertain positions, Quanta assumes that taxing authorities have full knowledge of the position and all relevant facts. Quanta continually reviews exposure to additional tax obligations, and as further information is known or events occur, changes in tax reserves may be recorded. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and are classified in the provision for income taxes. | |||||||||||||
As of December 31, 2014, the total amount of unrecognized tax benefits relating to uncertain tax positions was $51.1 million, an increase from December 31, 2013 of $2.2 million. This increase in unrecognized tax benefits resulted from a $9.2 million increase due to tax positions expected to be taken for 2014 and a $2.4 million increase due to tax positions taken in prior years, partially offset by a $9.4 million decrease due to the expiration of certain statute of limitations periods associated with the 2010 tax year. Quanta is currently under examination by the Internal Revenue Service (IRS) for calendar years 2011 and 2012 and remains open to examination by the IRS for tax years 2013 through 2014 as these statute of limitations periods have not yet expired. Additionally, certain subsidiaries are under examination by various U.S. state, Canadian and other foreign tax authorities for multiple periods. Quanta believes it is reasonably possible that within the next 12 months unrecognized tax benefits may decrease by up to $10.3 million as a result of settlement of these examinations or as a result of the expiration of certain statute of limitations periods. | |||||||||||||
The income tax laws and regulations are voluminous and are often ambiguous. As such, Quanta is required to make many subjective assumptions and judgments regarding its tax positions that could materially affect amounts recognized in its future consolidated balance sheets and statements of operations and comprehensive income. | |||||||||||||
Earnings Per Share | |||||||||||||
Basic earnings per share is computed using the weighted average number of common shares outstanding during the period, and diluted earnings per share is computed using the weighted average number of common shares outstanding during the period adjusted for all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalents would be antidilutive. | |||||||||||||
Self-Insurance | |||||||||||||
Quanta is insured for employer’s liability, general liability, auto liability and workers’ compensation claims. Under these programs, the deductibles for general liability and auto liability were $10.0 million per occurrence, the deductible for workers’ compensation was $5.0 million per occurrence, and the deductible for employer’s liability was $1.0 million per occurrence for the 2014-2015 and the 2013-2014 policy years. For the 2012-2013 policy year, deductibles for general liability, auto liability and workers’ compensation were $5.0 million per occurrence, and the deductible for employer’s liability was $1.0 million per occurrence. Quanta is generally self-insured for all claims that do not exceed the amount of the applicable deductible. Quanta also has employee health care benefit plans for most employees not subject to collective bargaining agreements, of which the primary plan is subject to a deductible of $375,000 per claimant per year. | |||||||||||||
Losses under all of these insurance programs are accrued based upon Quanta’s estimate of the ultimate liability for claims reported and an estimate of claims incurred but not reported, with assistance from third-party actuaries. These insurance liabilities are difficult to assess and estimate due to unknown factors, including the severity of an injury, the extent of damage, the determination of Quanta’s liability in proportion to other parties and the number of incidents not reported. The accruals are based upon known facts and historical trends, and management believes such accruals are adequate. | |||||||||||||
Collective Bargaining Agreements | |||||||||||||
Some of Quanta’s operating units are parties to various collective bargaining agreements with unions that represent certain of their employees. The collective bargaining agreements expire at various times and have typically been renegotiated and renewed on terms similar to those in the expiring agreements. The agreements require the operating units to pay specified wages, provide certain benefits to their union employees and contribute certain amounts to multi-employer pension plans and employee benefit trusts. Quanta’s multi-employer pension plan contribution rates generally are specified in the collective bargaining agreements (usually on an annual basis), and contributions are made to the plans on a “pay-as-you-go” basis based on its union employee payrolls. The location and number of union employees that Quanta employs at any given time and the plans in which they may participate vary depending on the projects Quanta has ongoing at that time and the need for union resources in connection with those projects. Therefore, Quanta is unable to accurately predict the union employee payroll and the amount of the resulting multi-employer pension plan contribution obligation for future periods. | |||||||||||||
Stock-Based Compensation | |||||||||||||
Quanta recognizes compensation expense for restricted stock, restricted stock units (RSUs) and performance units to be settled in common stock based on the fair value of the awards granted at the date of grant, net of estimated forfeitures. The fair value of restricted stock awards, RSUs and performance units to be settled in common stock is determined based on the number of shares or RSUs or performance units granted and the closing price of Quanta’s common stock on the date of grant. An estimate of future forfeitures is required in determining the period expense. Quanta uses historical data to estimate the forfeiture rate; however, these estimates are subject to change and may impact the value that will ultimately be realized as compensation expense. The resulting compensation expense from discretionary awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period, while compensation expense from performance-based awards is recognized using the graded vesting method over the requisite service period. Restricted stock awards, RSUs and performance units to be settled in common stock are subject to forfeiture, restrictions on transfer and certain other conditions until vesting. During the restriction period, holders of restricted stock are entitled to vote and receive dividends on such shares. The cash flows resulting from the tax deductions in excess of the compensation expense recognized for restricted stock, RSUs and performance units to be settled in common stock and stock options (excess tax benefit) are classified as financing cash flows. | |||||||||||||
Compensation expense associated with liability based awards, such as RSUs that are expected to be settled in cash, is recognized based on a remeasurement of the fair value of the award at the end of each reporting period. RSUs to be settled in cash are intended to provide the holders with cash performance incentives that are substantially equivalent to the risks and rewards of equity ownership in Quanta. RSUs to be settled in cash typically vest in equal installments over a two-year or three-year period following the date of grant and are subject to forfeiture under certain conditions, primarily termination of service. Upon vesting of RSUs to be settled in cash, the holders receive for each vested RSU an amount in cash equal to the fair market value on the vesting date of one share of Quanta common stock, as specified in the applicable award agreement. | |||||||||||||
Functional Currency and Translation of Financial Statements | |||||||||||||
The U.S. dollar is the functional currency for the majority of Quanta’s operations, which are primarily located within the United States. The functional currency for Quanta’s foreign operations, which are primarily located in Canada and Australia, is typically the currency of the country in which the foreign operating unit is located. Generally, the currency in which the operating unit transacts the majority of its activities, including billings, financing, payroll and other expenditures, would be considered the functional currency. The treatment of foreign currency translation gains or losses is dependent upon management’s determination of the functional currency of each operating unit, which involves consideration of all relevant economic facts and circumstances affecting the operating unit. In preparing the consolidated financial statements, Quanta translates the financial statements of its foreign operating units from their functional currency into U.S. dollars. Statements of operations, comprehensive income (loss) and cash flows are translated at average monthly rates, while balance sheets are translated at month-end exchange rates. This results in translation gains or losses, which are included as a separate component of equity under the caption “Accumulated other comprehensive income (loss).” Gains and losses arising from transactions which are not denominated in the operating units’ functional currencies are included within other income (expense) in the statements of operations. | |||||||||||||
Derivatives | |||||||||||||
From time to time, Quanta enters into forward currency contracts that qualify as derivatives in order to hedge the risks associated with fluctuations in foreign currency exchange rates related to certain forecasted foreign currency denominated transactions. Quanta does not enter into derivative transactions for speculative purposes; however, for accounting purposes, certain transactions may not meet the criteria for cash flow hedge accounting. For a hedge to qualify for cash flow hedge accounting treatment, a hedge must be documented at the inception of the contract, with the objective and strategy stated, along with an explicit description of the methodology used to assess hedge effectiveness. The dates (or periods) for the expected forecasted events and the nature of the exposure involved (including quantitative measures of the size of the exposure) must also be documented. At the inception of the hedge and on an ongoing basis, the hedge must be deemed to be “highly effective” at minimizing the risk of the identified exposure. Effectiveness measures relate the gains or losses of the derivative to changes in the cash flows associated with the hedged item, and the forecasted transaction must be probable of occurring. | |||||||||||||
For forward contracts that qualify as cash flow hedges, Quanta accounts for the change in fair value of the forward contracts directly in equity as part of accumulated other comprehensive income (loss). Any ineffective portion of cash flow hedges is recognized in earnings in the period in which ineffectiveness occurs. For instance, if a forward contract is discontinued as a cash flow hedge because it is probable that the original forecasted transaction will not occur by the end of the originally specified time period, the related amounts in accumulated other comprehensive income (loss) would be reclassified to other income (expense) in the consolidated statement of operations in the period such determination is made. When a forecasted transaction occurs, the portion of the accumulated gain or loss applicable to the forecasted transaction is reclassified from equity to earnings. Changes in fair value related to transactions that do not meet the criteria for cash flow hedge accounting are recorded in the consolidated statements of operations and are included in other income (expense). | |||||||||||||
Comprehensive Income | |||||||||||||
Components of comprehensive income include all changes in equity during a period except those resulting from changes in Quanta’s capital related accounts. Quanta records other comprehensive income (loss), net of tax, for foreign currency translation adjustments related to its foreign operations and for other revenues, expenses, gains and losses that are included in comprehensive income but excluded from net income. | |||||||||||||
Litigation Costs and Reserves | |||||||||||||
Quanta records reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Costs incurred for litigation are expensed as incurred. Further details are presented in Note 15. | |||||||||||||
Fair Value Measurements | |||||||||||||
The carrying values of cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term nature of these instruments. The carrying value of variable rate debt also approximates fair value. For disclosure purposes, qualifying assets and liabilities are categorized into three broad levels based on the priority of the inputs used to determine their fair values. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). All of Quanta’s cash equivalents were categorized as Level 1 assets at December 31, 2014 and 2013, as all values were based on unadjusted quoted prices for identical assets in an active market that Quanta has the ability to access. | |||||||||||||
In connection with Quanta’s acquisitions, identifiable intangible assets acquired include goodwill, backlog, customer relationships, trade names, covenants not-to-compete, patented rights and developed technology. Quanta utilizes the fair value premise as the primary basis for its valuation procedures, which is a market-based approach to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Quanta periodically engages the services of an independent valuation firm when a new business is acquired to assist management with this valuation process, including assistance with the selection of appropriate valuation methodologies and the development of market-based valuation assumptions. Based on these considerations, management utilizes various valuation methods, including an income approach, a market approach and a cost approach, to determine the fair value of intangible assets acquired based on the appropriateness of each method in relation to the type of asset being valued. The assumptions used in these valuation methods are analyzed and compared, where possible, to available market data, such as industry-based weighted average costs of capital and discount rates, trade name royalty rates, public company valuation multiples and recent market acquisition multiples. The level of inputs used for these fair value measurements is the lowest level (Level 3). Quanta believes that these valuation methods appropriately represent the methods that would be used by other market participants in determining fair value. | |||||||||||||
Quanta uses fair value measurements on a routine basis in its assessment of assets classified as goodwill, other intangible assets and long-lived assets held and used. In accordance with its annual impairment test during the quarter ended December 31, 2014, the carrying amounts of such assets, including goodwill, were compared to their fair values. The inputs used for fair value measurements for goodwill, other intangible assets and long-lived assets held and used are the lowest level (Level 3) inputs, and Quanta uses the assistance of third party specialists to develop valuation assumptions. | |||||||||||||
Quanta also uses fair value measurements in connection with the valuation of its investments in private company equity interests and financing instruments. These valuations require significant management judgment due to the absence of quoted market prices, the inherent lack of liquidity and the long-term nature of such assets. Typically, the initial costs of these investments are considered to represent fair market value, as such amounts are negotiated between willing market participants. On a quarterly basis, Quanta performs an evaluation of its investments to determine if an other-than-temporary decline in the value of each investment has occurred and whether the recorded amount of each investment will be realizable. If an other-than-temporary decline in the value of an investment occurs, a fair value analysis would be performed to determine the degree to which the investment was impaired and a corresponding charge to earnings would be recorded during the period. These types of fair market value assessments are similar to other nonrecurring fair value measures used by Quanta, which include the use of significant judgment and available relevant market data. Such market data may include observations of the valuation of comparable companies, risk adjusted discount rates and an evaluation of the expected performance of the underlying portfolio asset, including historical and projected levels of profitability or cash flows. In addition, a variety of additional factors may be reviewed by management, including, but not limited to, contemporaneous financing and sales transactions with third parties, changes in market outlook and the third-party financing environment. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Changes and Error Corrections [Abstract] | ||
New Accounting Pronouncements | 3 | NEW ACCOUNTING PRONOUNCEMENTS: |
Adoption of New Accounting Pronouncements | ||
On January 1, 2014, Quanta adopted an update that provides guidance on the balance sheet presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists as of the reporting date. The update is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this standard did not have a material effect on Quanta’s consolidated financial statements. | ||
Accounting Standards Not Yet Adopted | ||
In April 2014, the FASB issued an update that changes the requirement for reporting discontinued operations. A disposal of a component of an entity or a group of components of an entity will be required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the entity or group of components of an entity meets the criteria to be classified as held for sale or when it is disposed of by sale or other than by sale. The update also requires additional disclosures about discontinued operations, a disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements, and an entity’s significant continuing involvement with a discontinued operation. The update is effective prospectively for fiscal years beginning on or after December 15, 2014, including interim periods within that year. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in previously issued financial statements. Quanta adopted this guidance effective January 1, 2015. This guidance will impact the disclosure and presentation of how Quanta reports any future disposals of components or groups of components of its business. | ||
In May 2014, the FASB issued an update that supersedes most current revenue recognition guidance as well as some cost recognition guidance. The update requires that an entity recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires new qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, information about contract balances and performance obligations, and assets recognized from costs incurred to obtain or fulfill a contract. For public entities, the update is effective for fiscal years beginning on or after December 15, 2016, including interim periods within that year. The guidance can be applied on a full retrospective or modified retrospective basis whereby the entity records a cumulative effect of initially applying this update at the date of initial application, and early adoption is not permitted. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements and is planning to adopt this guidance effective January 1, 2017. | ||
In August 2014, the FASB issued guidance to address the diversity in practice in determining when there is substantial doubt about an entity’s ability to continue as a going concern and when and how an entity must disclose certain relevant conditions and events. This update requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern for a period of one year after the date that the financial statements are issued (or available to be issued). If such conditions or events exist, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern for a period of one year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations and management’s plans that are intended to mitigate those conditions or events. The guidance is effective for annual and interim periods ending after December 15, 2016. This guidance will impact the disclosure and presentation of how Quanta reports any substantial doubt about its ability to continue as a going concern, if such substantial doubt were to exist. Quanta will adopt this guidance effective January 1, 2017. | ||
In February 2015, the FASB issued an update which amends existing consolidation guidance, including amending the guidance related to determining whether an entity is a variable interest entity. The update is effective for interim and annual periods beginning after December 15, 2015, although early adoption is permitted. The guidance may be applied using a modified retrospective approach whereby the entity records a cumulative effect of adoption at the beginning of the fiscal year of initial application. A reporting entity may also apply the amendments on a full retrospective basis. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Discontinued Operations | 4 | DISCONTINUED OPERATIONS: | |||||||||||
On December 3, 2012, Quanta sold substantially all of its domestic telecommunications infrastructure services operations and related subsidiaries for net proceeds of approximately $265.0 million. Quanta recognized a pre-tax gain of approximately $18.0 million and a corresponding tax expense of approximately $32.2 million, which resulted in a loss on the sale, net of tax, of $14.2 million in the fourth quarter of 2012. Quanta has presented the results of operations, financial position and cash flows of such telecommunications subsidiaries as discontinued operations in the accompanying consolidated financial statements. The results of operations of these telecommunications subsidiaries were previously included primarily in the Telecommunications Infrastructure Services segment. | |||||||||||||
Summarized financial information for discontinued operations is shown below (in thousands): | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues | $ | — | $ | — | $ | 493,233 | |||||||
Income (loss) from discontinued operations before taxes | $ | (1,014 | ) | $ | — | $ | 46,576 | ||||||
Gain on disposal of discontinued operations before taxes | — | — | 17,962 | ||||||||||
(Provision) benefit for income taxes | 387 | — | (47,603 | ) | |||||||||
Income (loss) from discontinued operations, net of taxes | $ | (627 | ) | $ | — | $ | 16,935 | ||||||
In connection with the sale of the telecommunications operations, Quanta remained liable for all income related taxes and insured claims against the subsidiaries outstanding or arising as of December 3, 2012. Additionally, Quanta accelerated the vesting of unvested shares of restricted stock held by certain employees of the disposed telecommunications subsidiaries on December 3, 2012, the closing date of the sale. Accordingly, Quanta recorded incremental expense related to this accelerated vesting of $3.7 million during the fourth quarter of 2012. This incremental expense is included in income from discontinued operations, net of taxes in the accompanying consolidated statement of operations for the year ended December 31, 2012. | |||||||||||||
During the year ended December 31, 2014, legal fees of $1.0 million were accrued related to an ongoing legal matter. See Legal Proceedings — Lorenzo Benton v. Telecom Network Specialists, Inc., et al. in Note 15 for additional information. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
Acquisitions | 5 | ACQUISITIONS: | |||||||||||
2014 Acquisitions | |||||||||||||
During 2014, Quanta completed nine acquisitions, which enabled Quanta to further enhance its electric power and oil and gas infrastructure service offerings in the United States and Canada and expand its capabilities in Australia to include electric power infrastructure service offerings. These acquisitions included four electric power infrastructure services companies located in Canada; two oil and gas infrastructure services businesses located in Canada; an electric power infrastructure services company located in Australia; a U.S. based general engineering and construction company specializing in hydrant fueling, waterfront and utility construction for the U.S. Department of Defense that is generally included in Quanta’s Oil and Gas Infrastructure Services segment; and a geotechnical and geological engineering services company based in the United States that is generally included in Quanta’s Electric Power Infrastructure Services segment. The aggregate consideration paid for these acquisitions consisted of approximately $284.3 million in cash, 686,382 shares of Quanta common stock and 3,825,971 exchangeable shares of Canadian subsidiaries of Quanta that are exchangeable on a one-for-one basis for Quanta common stock. The exchangeable shares provide holders with rights equivalent to Quanta common stockholders with respect to dividends and other economic rights. In addition, Quanta issued one share of Series G preferred stock associated with 899,858 of the exchangeable shares, which generally votes on the same matters as Quanta common stock and is entitled to a number of votes equal to the number of such exchangeable shares outstanding at that time. The exchangeable shares not associated with preferred stock do not have voting rights. The aggregate value of the securities issued related to 2014 acquisitions on the respective closing or settlement dates of the acquisitions, totaled approximately $134.5 million. As these transactions were effective during 2014, the results of each acquired company have been included in Quanta’s consolidated financial statements beginning on the respective dates of acquisition. | |||||||||||||
Quanta is in the process of finalizing its assessments of the fair values of acquired assets and assumed liabilities related to the third and fourth quarter 2014 acquisitions, and further adjustments to the purchase price allocations may occur. Quanta expects to complete the purchase accounting process as soon as practicable but no later than one year from the respective acquisition dates. The aggregate purchase consideration related to the third and fourth quarter 2014 acquisitions was preliminarily allocated to acquired assets and assumed liabilities, which resulted in a preliminary allocation of approximately $106.9 million of net tangible assets, $116.1 million of goodwill and $73.9 million of other intangible assets. | |||||||||||||
2013 Acquisitions | |||||||||||||
During 2013, Quanta acquired six businesses, which enabled Quanta to further enhance its electric power infrastructure and oil and gas infrastructure service offerings in the United States, Canada and Australia. The aggregate consideration paid for these acquisitions consisted of approximately $341.1 million in cash and 3,547,482 shares of Quanta common stock valued, as of the respective dates of issuance, at approximately $88.9 million. The results for each company have been included in Quanta’s consolidated financial statements beginning on the respective dates of acquisition. | |||||||||||||
2012 Acquisitions | |||||||||||||
During 2012, Quanta acquired four businesses, which enabled Quanta to expand its electric power infrastructure services in Canada and its electric power infrastructure services and oil and gas infrastructure service offerings in the U.S. The aggregate consideration for these acquisitions consisted of approximately $57.5 million in cash, 1,927,113 shares of Quanta common stock valued at approximately $37.3 million, as of the respective dates of acquisition, and the repayment of $11.0 million in debt. The results for each company have been included in Quanta’s consolidated financial statements beginning on the respective dates of acquisition. | |||||||||||||
2014, 2013 and 2012 Acquisitions | |||||||||||||
The following table summarizes the aggregate consideration paid or payable as of December 31, 2014 for the 2014 and 2013 acquisitions and presents the allocation of these amounts to the net tangible and identifiable intangible assets based on their estimated fair values as of the respective acquisition dates. This allocation requires a significant use of estimates and is based on information that was available to management at the time these consolidated financial statements were prepared (in thousands). | |||||||||||||
2014 | 2013 | ||||||||||||
Consideration: | |||||||||||||
Value of Quanta common stock and exchangeable shares issued | $ | 134,538 | $ | 88,895 | |||||||||
Cash paid or payable | 284,312 | 341,064 | |||||||||||
Fair value of total consideration transferred | $ | 418,850 | $ | 429,959 | |||||||||
Current assets | $ | 172,298 | $ | 193,895 | |||||||||
Property and equipment | 159,186 | 60,988 | |||||||||||
Other assets | 3,500 | 1,009 | |||||||||||
Identifiable intangible assets | 96,302 | 55,124 | |||||||||||
Current liabilities | (144,252 | ) | (127,430 | ) | |||||||||
Deferred tax liabilities, net | (37,743 | ) | (4,083 | ) | |||||||||
Other long-term liabilities | (4,926 | ) | (5,350 | ) | |||||||||
Total identifiable net assets | 244,365 | 174,153 | |||||||||||
Goodwill | 174,485 | 255,806 | |||||||||||
$ | 418,850 | $ | 429,959 | ||||||||||
The fair value of current assets acquired in 2014 included accounts receivable with a fair value of $117.0 million. The fair value of current assets acquired in 2013 included accounts receivable with a fair value of $83.9 million. | |||||||||||||
Goodwill represents the excess of the purchase price over the net amount of the fair values assigned to assets acquired and liabilities assumed. The 2014, 2013 and 2012 acquisitions strategically expanded Quanta’s Canadian, Australian and domestic electric power and oil and gas service offerings, which Quanta believes contributes to the recognition of the goodwill. In connection with the 2014 acquisitions, goodwill of $71.5 million was recorded for reporting units included within Quanta’s Electric Power Division and $103.0 million was recorded for reporting units included within Quanta’s Oil and Gas Infrastructure Division on the dates of acquisition. In connection with the 2013 acquisitions, goodwill of $112.5 million was recorded for reporting units included within Quanta’s Electric Power Division and $143.3 million was recorded for reporting units included within Quanta’s Oil and Gas Infrastructure Division on the dates of acquisition. In connection with the 2012 acquisitions, goodwill of $57.5 million was recorded for reporting units included within Quanta’s Electric Power Division and $7.3 million was recorded for the reporting unit included within Quanta’s Oil and Gas Infrastructure Division on the dates of acquisition. Goodwill of approximately $30.1 million and $213.6 million is expected to be deductible for income tax purposes related to the businesses acquired in 2014 and 2013. | |||||||||||||
The following table summarizes the estimated fair values of identifiable intangible assets and the related weighted average amortization periods by type as of the respective acquisition dates for the 2014 acquisitions (in thousands, except for weighted average amortization periods, which are in years). | |||||||||||||
Estimated | Weighted Average | ||||||||||||
Fair Value at | Amortization Period at | ||||||||||||
Acquisition Date | Acquisition Date | ||||||||||||
Customer relationships | $ | 65,243 | 12.2 | ||||||||||
Backlog | 17,059 | 1.1 | |||||||||||
Trade names | 10,436 | 9.7 | |||||||||||
Non-compete agreements | 3,160 | 5 | |||||||||||
Patented rights and developed technology | 404 | 10 | |||||||||||
Total intangible assets subject to amortization acquired in 2014 acquisitions | $ | 96,302 | 9.7 | ||||||||||
The unaudited supplemental pro forma results of operations have been provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future. Future results may vary significantly from the results reflected in the following pro forma financial information because of future events and transactions, as well as other factors (in thousands, except per share amounts): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues | $ | 8,391,061 | $ | 7,740,575 | $ | 6,477,648 | |||||||
Gross profit | $ | 1,267,778 | $ | 1,254,211 | $ | 1,060,370 | |||||||
Selling, general and administrative expenses | $ | 737,488 | $ | 579,818 | $ | 478,184 | |||||||
Amortization of intangible assets | $ | 43,658 | $ | 52,405 | $ | 52,339 | |||||||
Net income from continuing operations | $ | 322,358 | $ | 481,263 | $ | 344,925 | |||||||
Net income from continuing operations attributable to common stock | $ | 303,990 | $ | 461,875 | $ | 328,898 | |||||||
Earnings per share from continuing operations attributable to common stock — basic and diluted | $ | 1.37 | $ | 2.08 | $ | 1.52 | |||||||
The pro forma combined results of operations for the years ended December 31, 2014 and 2013 have been prepared by adjusting the historical results of Quanta to include the historical results of the 2014 acquisitions as if they occurred January 1, 2013. The pro forma combined results of operations for the year ended December 31, 2013 have also been prepared by adjusting the historical results of Quanta to include the historical results of the 2013 acquisitions as if they occurred January 1, 2012. The pro forma combined results of operations for the year ended December 31, 2012 have been prepared by adjusting the historical results of Quanta to include the historical results of the 2013 acquisitions as if they occurred January 1, 2012 and the historical results of the 2012 acquisitions as if it occurred January 1, 2011. These pro forma combined historical results were then adjusted for the following: a reduction of interest expense as a result of the repayment of outstanding indebtedness, a reduction of interest income as a result of the cash consideration paid net of cash received, an increase in amortization expense due to the incremental intangible assets recorded related to the 2014, 2013 and 2012 acquisitions, an increase or decrease in depreciation expense within cost of services related to the net impact of adjusting acquired property and equipment to the acquisition date fair value and conforming depreciable lives with Quanta’s accounting policies, an increase in the number of outstanding shares of Quanta common stock and certain reclassifications to conform the acquired companies’ presentation to Quanta’s accounting policies. The pro forma results of operations do not include any adjustments to eliminate the impact of acquisition related costs or any cost savings or other synergies that may result from the 2014, 2013 and 2012 acquisitions. As noted above, the pro forma results of operations do not purport to be indicative of the actual results that would have been achieved by the combined company for the periods presented or that may be achieved by the combined company in the future. | |||||||||||||
Revenues of approximately $314.1 million and income from continuing operations before income taxes of approximately $3.4 million, which included $11.6 million of acquisition costs, were included in Quanta’s consolidated results of operations for the year ended December 31, 2014 related to the nine 2014 acquisitions following their respective dates of acquisition. Additionally, revenues of approximately $251.3 million and income from continuing operations before income taxes of approximately $18.2 million are included in Quanta’s consolidated results of operations for the year ended December 31, 2013 related to the six 2013 acquisitions following their respective dates of acquisition. Additionally, revenues of approximately $125.7 million and income from continuing operations before income taxes of approximately $6.2 million are included in Quanta’s consolidated results of operations for the year ended December 31, 2012 related to the four 2012 acquisitions following their respective dates of acquisition. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | 6 | GOODWILL AND OTHER INTANGIBLE ASSETS: | |||||||||||||||||||||||||||
A summary of changes in Quanta’s goodwill is as follows (in thousands): | |||||||||||||||||||||||||||||
Electric | Oil and Gas | Fiber Optic | Total | ||||||||||||||||||||||||||
Power | Infrastructure | Licensing | |||||||||||||||||||||||||||
Division | Division | Division | |||||||||||||||||||||||||||
Goodwill balance at December 31, 2012 | $ | 1,065,152 | $ | 137,703 | $ | 334,790 | $ | 1,537,645 | |||||||||||||||||||||
Goodwill acquired during 2013 | 112,549 | 143,257 | — | 255,806 | |||||||||||||||||||||||||
Foreign currency translation adjustment related to goodwill | (9,617 | ) | (3,117 | ) | — | (12,734 | ) | ||||||||||||||||||||||
Goodwill balance at December 31, 2013 | 1,168,084 | 277,843 | 334,790 | 1,780,717 | |||||||||||||||||||||||||
Goodwill acquired during 2014 | 71,517 | 102,968 | — | 174,485 | |||||||||||||||||||||||||
Foreign currency translation adjustment related to goodwill | (16,377 | ) | (7,340 | ) | — | (23,717 | ) | ||||||||||||||||||||||
Goodwill balance at December 31, 2014 | $ | 1,223,224 | $ | 373,471 | $ | 334,790 | $ | 1,931,485 | |||||||||||||||||||||
As described in Note 2, Quanta’s operating units are organized into one of Quanta’s three internal divisions and, accordingly, Quanta’s goodwill associated with each of its operating units has been aggregated on a divisional basis and reported in the table above. These divisions are closely aligned with Quanta’s reportable segments based on the predominant type of work performed by the operating units within the divisions. From time to time, operating units may be reorganized among Quanta’s internal divisions, as Quanta periodically re-evaluates strategies to better align its operations as business environments evolve. | |||||||||||||||||||||||||||||
Quanta’s intangible assets subject to amortization and the remaining weighted average amortization periods related to such assets were as follows (in thousands except for weighted average amortization periods, which are in years): | |||||||||||||||||||||||||||||
As of | As of | As of | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | |||||||||||||||||||||||||||
Intangible | Accumulated | Intangible | Intangible | Accumulated | Intangible | Remaining Weighted | |||||||||||||||||||||||
Assets | Amortization | Assets, Net | Assets | Amortization | Assets, Net | Average | |||||||||||||||||||||||
Amortization Period | |||||||||||||||||||||||||||||
in Years | |||||||||||||||||||||||||||||
Customer relationships | $ | 257,380 | $ | (74,289 | ) | $ | 183,091 | $ | 199,224 | $ | (59,417 | ) | $ | 139,807 | 10.2 | ||||||||||||||
Backlog | 151,404 | (138,460 | ) | 12,944 | 136,831 | (127,233 | ) | 9,598 | 1.3 | ||||||||||||||||||||
Trade names | 49,664 | (6,278 | ) | 43,386 | 40,342 | (4,228 | ) | 36,114 | 20 | ||||||||||||||||||||
Non-compete agreements | 31,430 | (25,136 | ) | 6,294 | 28,895 | (22,860 | ) | 6,035 | 3.4 | ||||||||||||||||||||
Patented rights and developed technology | 22,073 | (11,695 | ) | 10,378 | 21,440 | (9,617 | ) | 11,823 | 4.6 | ||||||||||||||||||||
Total intangible assets subject to amortization | $ | 511,951 | $ | (255,858 | ) | $ | 256,093 | $ | 426,732 | $ | (223,355 | ) | $ | 203,377 | 11 | ||||||||||||||
Additionally, Quanta had $4.5 million of intangible assets not subject to amortization at December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Amortization expense for intangible assets was $35.9 million, $27.5 million and $37.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. The estimated future aggregate amortization expense of intangible assets as of December 31, 2014 is set forth below (in thousands): | |||||||||||||||||||||||||||||
For the Fiscal Year Ending December 31, | |||||||||||||||||||||||||||||
2015 | $ | 34,823 | |||||||||||||||||||||||||||
2016 | 28,430 | ||||||||||||||||||||||||||||
2017 | 24,553 | ||||||||||||||||||||||||||||
2018 | 24,277 | ||||||||||||||||||||||||||||
2019 | 23,508 | ||||||||||||||||||||||||||||
Thereafter | 120,502 | ||||||||||||||||||||||||||||
Total | $ | 256,093 | |||||||||||||||||||||||||||
Per_Share_Information
Per Share Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Per Share Information | 7 | PER SHARE INFORMATION: | |||||||||||
Basic earnings per share is computed using the weighted average number of common shares outstanding during the period, and diluted earnings per share is computed using the weighted average number of common shares outstanding during the period adjusted for all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be antidilutive. The amounts used to compute the basic and diluted earnings per share for the years ended December 31, 2014, 2013 and 2012 are illustrated below (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Amounts Attributable to Common Stock: | |||||||||||||
Net income from continuing operations | $ | 297,341 | $ | 401,921 | $ | 289,694 | |||||||
Net income (loss) from discontinued operations | (627 | ) | — | 16,935 | |||||||||
Net income attributable to common stock | $ | 296,714 | $ | 401,921 | $ | 306,629 | |||||||
Weighted Average Shares: | |||||||||||||
Weighted average shares outstanding for basic earnings per share | 219,668 | 214,929 | 212,777 | ||||||||||
Effect of dilutive stock options | 22 | 49 | 58 | ||||||||||
Weighted average shares outstanding for diluted earnings per share | 219,690 | 214,978 | 212,835 | ||||||||||
For purposes of calculating diluted earnings per share, there were no adjustments required to derive Quanta’s net income attributable to common stock. Outstanding exchangeable shares that were issued pursuant to certain of Quanta’s historical acquisitions (as further discussed in Note 11), which are exchangeable on a one-for-one basis with shares of Quanta common stock, have been included in weighted average shares outstanding for basic and diluted earnings per share for the years ended December 31, 2014, 2013 and 2012 for the portion of the respective periods that they were outstanding. |
Detail_of_Certain_Balance_Shee
Detail of Certain Balance Sheet Accounts | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Detail of Certain Balance Sheet Accounts | 8 | DETAIL OF CERTAIN BALANCE SHEET ACCOUNTS: | |||||||||||
Activity in Quanta’s current and long-term allowance for doubtful accounts consisted of the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of year | $ | 5,215 | $ | 5,447 | |||||||||
Charged to bad debt expense and provision for long-term contract receivable | 103,871 | 3,236 | |||||||||||
Deductions for uncollectible receivables written off, net of recoveries | (102,912 | ) | (3,468 | ) | |||||||||
Balance at end of year | $ | 6,174 | $ | 5,215 | |||||||||
Included in the 2014 amounts charged and written off was the $102.5 million charge to long-term contract receivable and subsequent write-off related to the Sunrise Powerlink project. See Current and Long-Term Accounts and Notes Receivable and Allowance for Doubtful Accounts in Note 2 for more information. | |||||||||||||
Contracts in progress were as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Costs incurred on contracts in progress | $ | 6,603,351 | $ | 6,152,507 | |||||||||
Estimated earnings, net of estimated losses | 1,111,657 | 943,090 | |||||||||||
7,715,008 | 7,095,597 | ||||||||||||
Less — Billings to date | (7,675,674 | ) | (7,121,225 | ) | |||||||||
$ | 39,334 | $ | (25,628 | ) | |||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 290,447 | $ | 213,478 | |||||||||
Less — Billings in excess of costs and estimated earnings on uncompleted contracts | (251,113 | ) | (239,106 | ) | |||||||||
$ | 39,334 | $ | (25,628 | ) | |||||||||
Property and equipment consisted of the following (in thousands): | |||||||||||||
Estimated Useful | December 31, | ||||||||||||
Lives in Years | 2014 | 2013 | |||||||||||
Land | N/A | $ | 40,657 | $ | 30,743 | ||||||||
Buildings and leasehold improvements | 30-May | 95,058 | 77,939 | ||||||||||
Operating equipment and vehicles | 25-May | 1,460,121 | 1,199,807 | ||||||||||
Fiber optic and related assets | 20-May | 431,690 | 377,551 | ||||||||||
Office equipment, furniture and fixtures and information technology systems | 15-Mar | 122,914 | 107,477 | ||||||||||
Construction work in progress | N/A | 69,233 | 44,030 | ||||||||||
2,219,673 | 1,837,547 | ||||||||||||
Less — Accumulated depreciation and amortization | (739,545 | ) | (631,939 | ) | |||||||||
Property and equipment, net | $ | 1,480,128 | $ | 1,205,608 | |||||||||
Accounts payable and accrued expenses consisted of the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Accounts payable, trade | $ | 487,790 | $ | 412,601 | |||||||||
Accrued compensation and related expenses | 166,331 | 163,000 | |||||||||||
Accrued insurance, current portion | 49,309 | 44,608 | |||||||||||
Current deferred taxes | 31,014 | 16,424 | |||||||||||
Deferred revenues, current portion | 21,309 | 22,764 | |||||||||||
Income and franchise taxes payable | 20,946 | 74,499 | |||||||||||
Other accrued expenses | 100,637 | 68,284 | |||||||||||
$ | 877,336 | $ | 802,180 | ||||||||||
Debt_Obligations
Debt Obligations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt Obligations | 9 | DEBT OBLIGATIONS: | |||||||
Quanta’s long-term debt obligations consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Borrowings under credit facility | $ | 68,793 | $ | — | |||||
Other long-term debt, interest rates ranging from 1.4% to 4.3% | 6,370 | — | |||||||
Capital leases, interest rates ranging from 6.0% to 7.3% | 1,146 | 2,234 | |||||||
Total long-term debt obligations | 76,309 | 2,234 | |||||||
Less — Current maturities of long-term debt | 3,820 | 1,181 | |||||||
Total long-term debt obligations, net of current maturities | $ | 72,489 | $ | 1,053 | |||||
Quanta’s current maturities of long-term debt and short-term borrowings consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Short-term borrowings | $ | 5,056 | $ | — | |||||
Current maturities of long-term debt | 3,820 | 1,181 | |||||||
Current maturities of long-term debt and short-term borrowings | $ | 8,876 | $ | 1,181 | |||||
Credit Facility | |||||||||
On October 30, 2013, Quanta entered into an amended and restated credit agreement with various lenders that provides for a $1.325 billion senior secured revolving credit facility maturing October 30, 2018. The entire amount available may be used for revolving loans and letters of credit in U.S. dollars. Up to $400.0 million may be used for revolving loans and letters of credit in certain currencies other than U.S. dollars. Swing line loans are limited to $50.0 million in U.S. dollars, $30.0 million in Canadian dollars and $20.0 million in Australian dollars. In addition, subject to the conditions specified in the credit agreement, Quanta has the option to increase the revolving commitments by up to $300.0 million from time to time upon receipt of additional commitments from new or existing lenders. Borrowings under the credit agreement are to be used to refinance existing indebtedness and for working capital, capital expenditures and other general corporate purposes. | |||||||||
As of December 31, 2014, Quanta had approximately $336.7 million of outstanding letters of credit and bank guarantees, $225.1 million of which was denominated in U.S. dollars and $111.6 million of which was denominated in Australian or Canadian dollars, and $68.8 million of outstanding borrowings under the credit facility, all of which was denominated in Canadian dollars. The remaining $919.5 million was available for borrowings or issuing new letters of credit or bank guarantees. Information on borrowings under Quanta’s current and prior credit facility and the applicable interest rates during the years ended December 31, 2014 and 2013 is as follows (dollars in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Maximum amount outstanding during the period | $ | 130,856 | $ | 161,920 | |||||
Average daily amount outstanding under the credit facility | $ | 29,814 | $ | 14,482 | |||||
Weighted-average interest rate | 2.71 | % | 2.12 | % | |||||
Effective April 1, 2014, amounts borrowed under the credit agreement in U.S. dollars bear interest, at Quanta’s option, at a rate equal to either (i) the Eurocurrency Rate (as defined in the credit agreement) plus 1.125% to 2.125%, as determined based on Quanta’s Consolidated Leverage Ratio (as described below), or (ii) the Base Rate (as described below) plus 0.125% to 1.125%, as determined based on Quanta’s Consolidated Leverage Ratio. Amounts borrowed as revolving loans under the credit agreement in any currency other than U.S. dollars bear interest at a rate equal to the Eurocurrency Rate plus 1.125% to 2.125%, as determined based on Quanta’s Consolidated Leverage Ratio. Standby letters of credit issued under the credit agreement are subject to a letter of credit fee of 1.125% to 2.125%, based on Quanta’s Consolidated Leverage Ratio, and Performance Letters of Credit (as defined in the credit agreement) issued under the credit agreement in support of certain contractual obligations are subject to a letter of credit fee of 0.675% to 1.275%, based on Quanta’s Consolidated Leverage Ratio. Quanta is also subject to a commitment fee of 0.20% to 0.40%, based on its Consolidated Leverage Ratio, on any unused availability under the credit agreement. | |||||||||
Prior to April 1, 2014, amounts borrowed under the credit agreement in U.S. dollars bore interest, at Quanta’s option, at a rate equal to either (i) the Eurocurrency Rate plus 1.25%, or (ii) the Base Rate plus 0.25%. Amounts borrowed as revolving loans under the credit agreement in any currency other than U.S. dollars bore interest at a rate equal to the Eurocurrency Rate plus 1.25%. Standby letters of credit issued under the credit agreement were subject to a letter of credit fee of 1.25%, and Performance Letters of Credit issued under the credit agreement in support of certain contractual obligations were subject to a letter of credit fee of 0.75%. Quanta was also subject to a commitment fee of 0.20% on any unused availability under the credit agreement. | |||||||||
The Consolidated Leverage Ratio is the ratio of Quanta’s Consolidated Funded Indebtedness to Consolidated EBITDA (as those terms are defined in the credit agreement). For purposes of calculating Quanta’s Consolidated Leverage Ratio, Consolidated Funded Indebtedness is reduced by available cash and Cash Equivalents (as defined in the credit agreement) in excess of $25.0 million. The Base Rate equals the highest of (i) the Federal Funds Rate (as defined in the credit agreement) plus 0.5%, (ii) the prime rate publicly announced by Bank of America, N.A. and (iii) the Eurocurrency Rate plus 1.00%. | |||||||||
Subject to certain exceptions, the credit agreement is secured by substantially all the assets of Quanta and Quanta’s wholly owned U.S. subsidiaries and by a pledge of all of the capital stock of Quanta’s wholly owned U.S. subsidiaries and 65% of the capital stock of direct foreign subsidiaries of Quanta’s wholly owned U.S. subsidiaries. Quanta’s wholly owned U.S. subsidiaries also guarantee the repayment of all amounts due under the credit agreement. Subject to certain conditions, all collateral will automatically be released from the liens at any time Quanta maintains an Investment Grade Rating (defined in the credit agreement as two of the following three conditions being met: (i) a corporate credit rating that is BBB- or higher by Standard & Poor’s Rating Services, (ii) a corporate family rating that is Baa3 or higher by Moody’s Investors Services, Inc. or (iii) a corporate credit rating that is BBB- or higher by Fitch Ratings, Inc.). | |||||||||
The credit agreement contains certain covenants, including a maximum Consolidated Leverage Ratio and a minimum Consolidated Interest Coverage Ratio (as such terms are defined in the credit agreement). The credit agreement also limits certain acquisitions, mergers and consolidations, indebtedness, asset sales and prepayments of indebtedness and, subject to certain exceptions, prohibits liens on Quanta’s assets. The credit agreement allows cash payments for dividends and stock repurchases subject to compliance with the following requirements (after giving effect to the dividend or stock repurchase): (i) no default or event of default under the credit agreement; (ii) continued compliance with the financial covenants in the credit agreement; and (iii) at least $100 million of availability under the credit agreement and/or cash and cash equivalents on hand. As of December 31, 2014, Quanta was in compliance with all of the covenants in the credit agreement. | |||||||||
The credit agreement provides for customary events of default and contains cross-default provisions with Quanta’s underwriting, continuing indemnity and security agreement with its sureties and all other debt instruments exceeding $75.0 million in borrowings or availability. If an Event of Default (as defined in the credit agreement) occurs and is continuing, on the terms and subject to the conditions set forth in the credit agreement, the lenders may declare all amounts outstanding and accrued and unpaid interest immediately due and payable, require that Quanta provide cash collateral for all outstanding letter of credit obligations, terminate the commitments under the credit agreement, and foreclose on the collateral. | |||||||||
Prior to amendment and restatement of the credit agreement on October 30, 2013, Quanta’s credit agreement provided for a $700.0 million senior secured revolving credit facility. Borrowings were used to refinance existing indebtedness and for working capital, capital expenditures and other general corporate purposes. Amounts borrowed in U.S. dollars bore interest, at Quanta’s option, at a rate equal to either (a) the Eurocurrency Rate (as defined in the credit agreement) plus 1.25% to 2.50%, as determined based on Quanta’s Consolidated Leverage Ratio (as described below), plus, if applicable, any Mandatory Cost (as defined in the credit agreement) required to compensate lenders for the cost of compliance with certain European regulatory requirements, or (b) the Base Rate (as described below) plus 0.25% to 1.50%, as determined based on Quanta’s Consolidated Leverage Ratio. Amounts borrowed in any currency other than U.S. dollars bore interest at a rate equal to the Eurocurrency Rate plus 1.25% to 2.50%, as determined based on Quanta’s Consolidated Leverage Ratio, plus, if applicable, any Mandatory Cost. Standby letters of credit issued under the credit agreement were subject to a letter of credit fee of 1.25% to 2.50%, based on Quanta’s Consolidated Leverage Ratio, and Performance Letters of Credit (as defined in the credit agreement) issued under the credit agreement in support of certain contractual obligations were subject to a letter of credit fee of 0.75% to 1.50%, based on Quanta’s Consolidated Leverage Ratio. Quanta was also subject to a commitment fee of 0.20% to 0.45%, based on Quanta’s Consolidated Leverage Ratio, on any unused availability under the credit agreement. The Consolidated Leverage Ratio was the ratio of Quanta’s total funded debt to Consolidated EBITDA (as those terms are defined in the credit agreement). For purposes of calculating both the Consolidated Leverage Ratio and the maximum senior debt to Consolidated EBITDA ratio discussed above, total funded debt and total senior debt were reduced by all unrestricted cash and Cash Equivalents (as defined in the credit agreement) held by Quanta in excess of $25.0 million. The Base Rate equaled the highest of (i) the Federal Funds Rate (as defined in the credit agreement) plus 0.5%, (ii) the prime rate publicly announced by Bank of America, N.A. and (iii) the Eurocurrency Rate plus 1.00%. | |||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 10 | INCOME TAXES: | |||||||||||
The components of income from continuing operations before income taxes were as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income from continuing operations before income taxes: | |||||||||||||
Domestic | $ | 309,875 | $ | 523,745 | $ | 390,734 | |||||||
Foreign | 163,242 | 115,504 | 73,846 | ||||||||||
Total | $ | 473,117 | $ | 639,249 | $ | 464,580 | |||||||
The components of the provision for income taxes for continuing operations were as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 74,224 | $ | 173,930 | $ | 109,272 | |||||||
State | 9,542 | 23,287 | 12,397 | ||||||||||
Foreign | 39,978 | 37,193 | 14,657 | ||||||||||
Total current tax provision | 123,744 | 234,410 | 136,326 | ||||||||||
Deferred: | |||||||||||||
Federal | 20,799 | (15,457 | ) | 16,134 | |||||||||
State | 3,698 | (451 | ) | 1,627 | |||||||||
Foreign | 9,167 | (562 | ) | 4,772 | |||||||||
Total deferred tax provision (benefit) | 33,664 | (16,470 | ) | 22,533 | |||||||||
Total provision for income taxes from continuing operations | $ | 157,408 | $ | 217,940 | $ | 158,859 | |||||||
The actual income tax provision differed from the income tax provision computed by applying the U.S. federal statutory corporate rate to income from continuing operations before provision for income taxes as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Provision at the statutory rate | $ | 165,591 | $ | 223,737 | $ | 162,603 | |||||||
Increases (decreases) resulting from — | |||||||||||||
State taxes | 9,948 | 14,788 | 10,980 | ||||||||||
Foreign taxes | (13,059 | ) | (9,994 | ) | (5,841 | ) | |||||||
Contingency reserves, net | (696 | ) | (3,422 | ) | (3,880 | ) | |||||||
Production activity deduction | (6,033 | ) | (10,247 | ) | (7,081 | ) | |||||||
Employee per diems, meals and entertainment | 9,906 | 7,960 | 6,441 | ||||||||||
Taxes on unincorporated joint ventures | (6,429 | ) | (6,786 | ) | (5,609 | ) | |||||||
Other | (1,820 | ) | 1,904 | 1,246 | |||||||||
Total provision for income taxes from continuing operations | $ | 157,408 | $ | 217,940 | $ | 158,859 | |||||||
Deferred income taxes result from temporary differences in the recognition of income and expenses for financial reporting purposes and tax purposes. The tax effects of these temporary differences, representing deferred tax assets and liabilities, result principally from the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred income tax liabilities: | |||||||||||||
Property and equipment | $ | (255,084 | ) | $ | (218,739 | ) | |||||||
Goodwill | (72,030 | ) | (58,643 | ) | |||||||||
Other intangibles | (53,599 | ) | (42,604 | ) | |||||||||
Book/tax accounting method difference | (63,989 | ) | (50,764 | ) | |||||||||
Total deferred income tax liabilities | (444,702 | ) | (370,750 | ) | |||||||||
Deferred income tax assets: | |||||||||||||
Accruals and reserves | 22,885 | 22,642 | |||||||||||
Accrued insurance | 64,773 | 59,640 | |||||||||||
Deferred revenue | 16,575 | 15,336 | |||||||||||
Stock and incentive compensation and pension withdrawal liabilities | 53,610 | 57,674 | |||||||||||
Net operating loss carryforwards | 21,511 | 20,828 | |||||||||||
Other | 10,678 | 10,857 | |||||||||||
Subtotal | 190,032 | 186,977 | |||||||||||
Valuation allowance | (15,186 | ) | (15,644 | ) | |||||||||
Total deferred income tax assets | 174,846 | 171,333 | |||||||||||
Total net deferred income tax liabilities | $ | (269,856 | ) | $ | (199,417 | ) | |||||||
The net deferred income tax assets and liabilities were comprised of the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred income taxes: | |||||||||||||
Assets | $ | 58,272 | $ | 61,263 | |||||||||
Liabilities | (31,014 | ) | (16,424 | ) | |||||||||
27,258 | 44,839 | ||||||||||||
Non-current deferred income taxes: | |||||||||||||
Assets | 3,402 | — | |||||||||||
Liabilities | (300,516 | ) | (244,256 | ) | |||||||||
(297,114 | ) | (244,256 | ) | ||||||||||
Total net deferred income tax liabilities | $ | (269,856 | ) | $ | (199,417 | ) | |||||||
The valuation allowance for deferred income tax assets at December 31, 2014, 2013 and 2012 was $15.2 million, $15.6 million and $9.3 million, respectively. These valuation allowances relate to foreign net operating loss carryforwards, state net operating loss carryforwards and foreign tax credit carryforwards. The net change in the total valuation allowance for each of the years ended December 31, 2014, 2013 and 2012 was a decrease of $0.4 million, an increase of $6.3 million and an increase of $0.5 million, respectively. The valuation allowance was established primarily as a result of uncertainty in Quanta’s outlook as to future taxable income in particular tax jurisdictions. Quanta believes it is more likely than not that it will realize the benefit of its deferred tax assets, net of existing valuation allowances. | |||||||||||||
At December 31, 2014, Quanta had state and foreign net operating loss carryforwards, the tax effect of which was approximately $25.3 million. These carryforwards will expire as follows: 2015, $0.1 million; 2016, $0.0 million; 2017, $0.7 million; 2018, $0.1 million; 2019, $0.0 million and $24.4 million thereafter. A valuation allowance of $13.9 million has been recorded against certain foreign and state net operating loss carryforwards. | |||||||||||||
Through December 31, 2014, Quanta has not provided U.S. income taxes on approximately $344.5 million of unremitted foreign earnings. If we were to repatriate cash that is indefinitely reinvested outside the U.S., we could be subject to additional U.S income and foreign withholding taxes. Because of the number and variability of assumptions required, it is not practicable to determine the amount of any additional U.S. tax liability that may result if Quanta decides to no longer indefinitely reinvest foreign earnings outside the U.S. If Quanta’s intentions or U.S. tax laws change in the future, there may be a significant negative impact on the provision for income taxes and cash flows as a result of recording an incremental tax liability, in the period such change occurs. | |||||||||||||
A reconciliation of unrecognized tax benefit balances is as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 48,838 | $ | 51,244 | $ | 47,379 | |||||||
Additions based on tax positions related to the current year | 9,179 | 9,073 | 15,411 | ||||||||||
Additions for tax positions of prior years | 2,438 | — | 1,607 | ||||||||||
Reductions for tax positions of prior years | — | — | (293 | ) | |||||||||
Reductions for audit settlements | — | — | (895 | ) | |||||||||
Reductions resulting from a lapse of the applicable statute of limitations periods | (9,376 | ) | (11,479 | ) | (11,965 | ) | |||||||
Balance at end of year | $ | 51,079 | $ | 48,838 | $ | 51,244 | |||||||
For the year ended December 31, 2014, the $9.4 million reduction was primarily due to the expiration of certain federal and state statute of limitations periods for the 2010 tax year. For the year ended December 31, 2013, the $11.5 million reduction was primarily due to the expiration of certain federal and state statute of limitations periods for the 2009 tax year. For the year ended December 31, 2012, the $12.0 million reduction was primarily due to the expiration of certain federal and state statute of limitations periods for the 2008 tax year. | |||||||||||||
The balances of unrecognized tax benefits, the amount of related interest and penalties and what Quanta believes to be the range of reasonably possible changes in the next 12 months are as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits | $ | 51,079 | $ | 48,838 | $ | 51,244 | |||||||
Portion that, if recognized, would reduce tax expense and effective tax rate | 43,363 | 40,562 | 43,910 | ||||||||||
Accrued interest on unrecognized tax benefits | 6,360 | 5,837 | 6,088 | ||||||||||
Accrued penalties on unrecognized tax benefits | 697 | 99 | 127 | ||||||||||
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | $ | 0 to $10,331 | $0 to $6,722 | $ | 0 to $11,479 | ||||||||
Portion that, if recognized, would reduce tax expense and effective tax rate | $0 to $8,593 | $0 to $4,984 | $0 to $9,645 | ||||||||||
Quanta classifies interest and penalties within the provision for income taxes. Quanta recognized interest expense of $0.5 million, interest income of $0.3 million and interest income of $1.1 million in the provision for income taxes for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Quanta is currently under examination by the IRS for calendar years 2011 and 2012 and remains open to examination by the IRS for tax years 2013 through 2014 as these statute of limitations periods have not yet expired. Additionally, certain subsidiaries are under examination by various U.S. state, Canadian and other foreign tax authorities for multiple periods. Quanta’s Canadian subsidiaries remain open to examination by the Canada Revenue Agency for tax years 2010 through 2014 as these statute of limitations periods have not yet expired. Quanta does not consider any state in which it does business to be a major tax jurisdiction. |
Equity
Equity | 12 Months Ended | |
Dec. 31, 2014 | ||
Equity [Abstract] | ||
Equity | 11 | EQUITY: |
Exchangeable Shares and Series F and Series G Preferred Stock | ||
In connection with certain Canadian acquisitions, the former owners of the acquired companies received exchangeable shares of certain Canadian subsidiaries of Quanta, which may be exchanged at the option of the holders for Quanta common stock on a one-for-one basis. The holders of exchangeable shares can make an exchange only once in any calendar quarter and must exchange a minimum of either 50,000 shares or, if less, the total number of remaining exchangeable shares registered in the name of the holder making the request. Additionally, in connection with two of such acquisitions, Quanta issued one share of Quanta Series F preferred stock and one share of Quanta Series G preferred stock (the Preferred Stock) to voting trusts on behalf of the respective holders of the exchangeable shares issued in such acquisitions. Each share of Preferred Stock provides the holders of such exchangeable shares voting rights in Quanta common stock equivalent to the number of exchangeable shares outstanding at that time. | ||
The combination of the exchangeable shares and Preferred Stock gives the holders of such exchangeable shares rights equivalent to Quanta common stockholders with respect to voting, dividends and other economic rights. The holders of exchangeable shares not associated with the Preferred Stock have rights equivalent to Quanta common stockholders with respect to dividends and other economic rights but do not have voting rights. On March 26, 2013, 409,110 exchangeable shares associated with the Preferred Stock were exchanged for Quanta common stock. As of December 31, 2014, both shares of the Preferred Stock remained outstanding and 7,325,971 exchangeable shares remained outstanding, of which 4,399,858 were associated with the Preferred Stock. | ||
Treasury Stock | ||
Under the stock incentive plans described in Note 12, the tax withholding obligations of employees upon vesting of restricted stock awards and RSUs settled in common stock are typically satisfied by Quanta making such tax payments and withholding a number of vested shares having a value on the date of vesting equal to the tax withholding obligation. For the settlement of these employee tax liabilities, Quanta withheld 352,558 shares of Quanta common stock during the year ended December 31, 2014, with a total market value of $12.3 million, 379,566 shares of Quanta common stock during the year ended December 31, 2013 with a total market value of $12.1 million, and 370,007 shares of Quanta common stock during the year ended December 31, 2012 with a total market value of $6.7 million. These shares and the related costs to acquire them were accounted for as adjustments to the balance of treasury stock. Under Delaware corporate law, treasury stock is not counted for quorum purposes or entitled to vote. | ||
During the fourth quarter of 2013, Quanta’s board of directors approved a stock repurchase program authorizing Quanta to purchase, from time to time through December 31, 2016, up to $500.0 million of its outstanding common stock. During the year ended December 31, 2013, Quanta did not purchase any of its common stock under this program. During the year ended December 31, 2014, Quanta purchased approximately 3.0 million shares of its common stock under this program at a cost of $93.5 million. The shares and the related cost to acquire them have been accounted for as an adjustment to the balance of treasury stock. | ||
Non-controlling Interests | ||
Quanta holds investments in several joint ventures that provide infrastructure services under specific customer contracts. Typically, each joint venture is owned equally by its members. Quanta has determined that certain of these joint ventures are variable interest entities, with Quanta providing the majority of the infrastructure services to the joint venture, which management believes most significantly influences the economic performance of the joint venture. Management has concluded that Quanta is the primary beneficiary of each of these joint ventures and has accounted for each on a consolidated basis. The other parties’ equity interests in these joint ventures have been accounted for as non-controlling interests in the consolidated financial statements. Income attributable to the other joint venture members in the amounts of $18.4 million, $19.4 million and $16.0 million for the years ended December 31, 2014, 2013 and 2012, respectively, has been accounted for as a reduction of net income in deriving net income attributable to common stock. Equity in the consolidated assets and liabilities of these joint ventures that is attributable to the other joint venture members has been accounted for as non-controlling interests within total equity in the accompanying balance sheets. | ||
The carrying value of the investments held by Quanta in all of its variable interest entities was approximately $11.1 million and $7.1 million at December 31, 2014 and 2013. The carrying value of investments held by the non-controlling interests in these variable interest entities at December 31, 2014 and 2013 was $11.1 million and $7.1 million. During the years ended December 31, 2014, 2013 and 2012, distributions to non-controlling interests were $14.4 million, $17.6 million and $18.0 million. There were no other changes in equity as a result of transfers to/from the non-controlling interests during the years ended December 31, 2014, 2013 and 2012. See Note 15 for further disclosures related to Quanta’s joint venture arrangements. |
EquityBased_Compensation
Equity-Based Compensation | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Equity-Based Compensation | 12 | EQUITY-BASED COMPENSATION: | |||||||
Stock Incentive Plans | |||||||||
On May 19, 2011, Quanta’s stockholders approved the 2011 Omnibus Equity Incentive Plan (the 2011 Plan). The 2011 Plan provides for the award of non-qualified stock options, incentive (qualified) stock options (ISOs), stock appreciation rights, restricted stock, RSUs, stock bonus awards, performance compensation awards (including performance units and cash bonus awards) or any combination of the foregoing. The purpose of the 2011 Plan is to provide participants with additional performance incentives by increasing their proprietary interest in Quanta. Employees, directors, officers, consultants or advisors of Quanta or its affiliates are eligible to participate in the 2011 Plan, as are prospective employees, directors, officers, consultants or advisors of Quanta who have agreed to serve Quanta in those capacities. An aggregate of 11,750,000 shares of Quanta common stock may be issued pursuant to awards granted under the 2011 Plan. | |||||||||
Additionally, pursuant to the Quanta Services, Inc. 2007 Stock Incentive Plan (the 2007 Plan), which was adopted on May 24, 2007, Quanta may award restricted stock, incentive stock options and non-qualified stock options to eligible employees, directors, and certain consultants and advisors. An aggregate of 4,000,000 shares of common stock may be issued pursuant to awards granted under the 2007 Plan. Quanta also has a Restricted Stock Unit Plan (the RSU Plan), pursuant to which RSUs may be awarded to certain employees and consultants of Quanta’s Canadian operations. | |||||||||
The 2011 Plan, the 2007 Plan and the RSU Plan, together with certain plans assumed by Quanta in acquisitions, are referred to as the Plans. | |||||||||
The Plans are administered by the Compensation Committee of the Board of Directors of Quanta. The Compensation Committee has, subject to applicable regulation and the terms of the Plans, the authority to grant awards under the Plans, to construe and interpret the Plans and to make all other determinations and take any and all actions necessary or advisable for the administration of the Plans. The Board also delegated to the Equity Grant Committee, a committee of the Board consisting of one or more directors, the authority to grant limited awards to eligible persons who are not executive officers or non-employee directors. | |||||||||
Restricted Stock and RSUs to be Settled in Common Stock | |||||||||
During the years ended December 31, 2014, 2013 and 2012, Quanta granted 1.4 million, 1.5 million and 1.3 million shares of restricted stock and RSUs to be settled in common stock under the Plans with weighted average grant date fair values of $35.09, $29.37 and $21.84 per share, respectively. The grant date fair value for awards of restricted stock and RSUs to be settled in common stock is based on the market value of Quanta common stock on the date of grant. Restricted stock and RSU awards to be settled in common stock are subject to forfeiture, restrictions on transfer and certain other conditions until vesting, which generally occurs in equal installments over a two-year or three-year period following the date of grant. During the restriction period, holders of restricted stock are entitled to vote and receive dividends on such shares. | |||||||||
During the years ended December 31, 2014, 2013 and 2012, vesting activity consisted of 1.1 million, 1.2 million and 0.9 million shares of restricted stock and RSUs settled in common stock with an approximate fair value at the time of vesting of $33.5 million, $32.8 million and $22.3 million, respectively. Vesting activity during the year ended December 31, 2013 included compensation cost of approximately $4.3 million associated with the accelerated vesting of restricted stock and RSUs settled in common stock held by the former Executive Chairman of Quanta’s board of directors upon his retirement in May 2013. | |||||||||
A summary of the activity for restricted stock and RSUs to be settled in common stock for the year ended December 31, 2014 is as follows (shares in thousands): | |||||||||
Shares | Weighted | ||||||||
Average | |||||||||
Grant Date | |||||||||
Fair Value | |||||||||
(Per share) | |||||||||
Unvested at January 1, 2014 | 2,358 | $ | 25.96 | ||||||
Granted | 1,432 | $ | 35.09 | ||||||
Vested | (1,138 | ) | $ | 34.93 | |||||
Forfeited | (111 | ) | $ | 29.58 | |||||
Unvested at December 31, 2014 | 2,541 | $ | 31.25 | ||||||
As of December 31, 2014, there was approximately $34.5 million of total unrecognized compensation cost related to unvested restricted stock and 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 1.56 years. | |||||||||
Performance Units to be Settled in Common Stock | |||||||||
Performance units awarded pursuant to the Plans provide for the issuance of shares of common stock upon vesting. These performance units cliff-vest at the end of a three-year performance period based on achievement of three-year financial targets and strategic goals on a 0% to 200% performance scale as determined by the Compensation Committee. | |||||||||
During the year ended December 31, 2014, Quanta granted 0.1 million performance units to be settled in common stock under the Plans with a weighted average grant date fair value of $35.20 per share. No performance units were granted under the Plans during the years ended December 31, 2013 or 2012. The grant date fair value for awards of performance units to be settled in common stock is based on the market value of Quanta common stock on the date of grant applied to the total number of shares that Quanta anticipates will fully vest. This fair value is expensed ratably over the vesting term. During the year ended December 31, 2014, Quanta recognized $2.4 million in compensation expense associated with performance units to be settled in common stock. No performance units vested, and no shares of common stock were distributed in connection with performance units during the year ended December 31, 2014, as applicable performance periods had not yet concluded. | |||||||||
RSUs to be Settled in Cash | |||||||||
Certain RSUs granted by Quanta under the Plans are intended to provide plan participants with cash performance incentives that are substantially equivalent to the risks and rewards of equity ownership in Quanta. These RSUs to be settled in cash typically vest in equal installments over a two-year or three-year period following the date of grant and are subject to forfeiture under certain conditions, primarily termination of service. Upon vesting of these RSUs, the holders receive for each vested RSU an amount in cash equal to the fair market value on the vesting date of one share of Quanta common stock, as specified in the applicable award agreement. | |||||||||
Compensation expense related to RSUs to be settled in cash was $3.9 million, $3.1 million and $2.0 million for the years ended December 31, 2014, 2013 and 2012. Such expense is recorded in selling, general and administrative expenses. RSUs that may be settled only in cash are not included in the calculation of earnings per share, and the estimated earned value of such RSUs is classified as a liability. Quanta paid $3.1 million, $1.8 million and $1.7 million to settle liabilities related to cash-settled RSUs in the years ended December 31, 2014, 2013 and 2012, respectively. Accrued liabilities for the estimated earned value of outstanding RSUs to be settled in cash were $2.9 million and $2.1 million at December 31, 2014 and 2013. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Employee Benefit Plans | 13 | EMPLOYEE BENEFIT PLANS: | |||||||||||||||||||||||
Unions’ Multi-Employer Pension Plans | |||||||||||||||||||||||||
Quanta contributes to a number of multi-employer defined benefit pension plans under the terms of collective bargaining agreements with various unions that represent certain of Quanta’s employees. Quanta’s multi-employer pension plan contribution rates generally are specified in the collective bargaining agreements (usually on an annual basis), and contributions are made to the plans on a “pay-as-you-go” basis based on its union employee payrolls. Quanta may also have additional liabilities imposed by law as a result of its participation in multi-employer defined benefit pension plans. The Employee Retirement Income Security Act of 1974, as amended by the Multi-Employer Pension Plan Amendments Act of 1980, imposes certain liabilities upon an employer who is a contributor to a multi-employer pension plan if the employer withdraws from the plan or the plan is terminated or experiences a mass withdrawal. In the fourth quarter of 2011, Quanta recorded a partial withdrawal liability related to the withdrawal by certain Quanta subsidiaries from the Central States, Southeast and Southwest Areas Pension Plan (Central States Plan) following an amendment to the applicable collective bargaining agreement which eliminated their obligations to contribute to the Central States Plan. During the first quarter of 2014, Quanta recorded an adjustment to cost of services to increase the recognized withdrawal liability. Additional information regarding this withdrawal, as well as the withdrawal from the Central States Plan of a company acquired by Quanta in the fourth quarter of 2013, is provided in Collective Bargaining Agreements in Note 15. | |||||||||||||||||||||||||
The Pension Protection Act of 2006 (PPA) also added special funding and operational rules generally applicable to plan years beginning after 2007 for multi-employer plans that are classified as “endangered,” “seriously endangered” or “critical” status based on multiple factors (including, for example, the plan’s funded percentage, cash flow position and whether it is projected to experience a minimum funding deficiency). Plans in these classifications must adopt measures to improve their funded status through a funding improvement or rehabilitation plan, as applicable, which may require additional contributions from employers (which may take the form of a surcharge on benefit contributions) and/or modifications to retiree benefits. Certain plans to which Quanta contributes or may contribute in the future are in “endangered,” “seriously endangered” or “critical” status. The amount of additional funds, if any, that Quanta may be obligated to contribute to these plans in the future cannot be estimated due to uncertainty of the future levels of work that require the specific use of union employees covered by these plans, as well as the future contribution levels and possible surcharges on contributions applicable to these plans. | |||||||||||||||||||||||||
The following table summarizes plan information relating to Quanta’s participation in multi-employer defined benefit pension plans, including company contributions for the last three years, the status under the PPA of the plans and whether the plans are subject to a funding improvement or rehabilitation plan or contribution surcharges. The most recent PPA zone status available in 2014 and 2013 relates to the plan’s fiscal year-end in 2013 and 2012. Forms 5500 were not yet available for the plan years ending in 2014. The PPA zone status is based on information that Quanta received from the respective plans, as well as publicly available information on the U.S. Department of Labor website, and is certified by the plan’s actuary. Although multiple factors or tests may result in red zone or yellow zone status, plans in the red zone generally are less than 65 percent funded, plans in the yellow zone generally are less than 80 percent funded, and plans in the green zone generally are at least 80 percent funded. Under the PPA, red zone plans are classified as “critical” status, yellow zone plans are classified as “endangered” status and green zone plans are classified as neither “endangered” nor “critical” status. The “Subject to Financial Improvement/ Rehabilitation Plan” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration dates of Quanta’s collective-bargaining agreements to which the plans are subject. Total contributions to these plans correspond to the number of union employees employed at any given time and the plans in which they participate and varies depending upon the location and number of ongoing projects at a given time and the need for union resources in connection with such projects. Information has been presented separately for individually significant plans and in the aggregate for all other plans. | |||||||||||||||||||||||||
Fund | Employee | Subject to | Sur- | Expiration Date | |||||||||||||||||||||
Identification | Financial | of Collective | |||||||||||||||||||||||
Number/ | PPA Zone | Improve- | Contributions (in thousands) | charge | Bargaining | ||||||||||||||||||||
Pension Plan | Status | ment/ | Agreement | ||||||||||||||||||||||
Number | Reha- | Imposed | |||||||||||||||||||||||
bilitation | |||||||||||||||||||||||||
2014 | 2013 | Plan | 2014 | 2013 | 2012 | ||||||||||||||||||||
National Electrical Benefit Fund | 53-0181657-001 | Green | Green | No | $ | 20,758 | $ | 17,268 | $ | 18,509 | No | Varies through August 2018 | |||||||||||||
Central Pension Fund of the IUOE & Participating Employers | 36-6052390-001 | Green | Green | No | 7,847 | 4,259 | 6,843 | No | Varies through June 2017 | ||||||||||||||||
Pipeline Industry Pension Fund | 73-6146433-001 | Green | Green | No | 6,280 | 4,511 | 7,434 | No | Varies through June 2017 | ||||||||||||||||
Laborers National Pension Fund | 75-1280827-001 | Green | Green | No | 4,227 | 4,681 | 1,906 | No | Apr-15 | ||||||||||||||||
Eighth District Electrical Pension Fund | 84-6100393-001 | Green | Green | No | 2,192 | 1,790 | 4,415 | No | Varies through February 2018 | ||||||||||||||||
Joint Pension Local Union 164 IBEW | 22-6031199-001 | Yellow | Yellow | Yes | 1,816 | 222 | 515 | No | May-17 | ||||||||||||||||
Laborers Pension Trust Fund for Northern California | 94-6277608-001 | Yellow | Yellow | Yes | 1,357 | 987 | 21 | Yes | Jun-19 | ||||||||||||||||
Michigan Upper Peninsula Intrl Brotherhood of Elec Workers Pension Plan | 36-3020872-001 | Yellow | Yellow | Yes | 1,307 | 299 | 518 | No | May-17 | ||||||||||||||||
Operating Engineers Local 324 Pension Fund | 38-1900637-001 | Red | Red | Yes | 1,086 | 818 | 135 | Yes | Varies through April 2018 | ||||||||||||||||
OE Pension Trust Fund | 94-6090764-001 | Red | Yellow | Yes | 991 | 902 | 768 | Yes | Jul-16 | ||||||||||||||||
Alaska Teamster — Employer Pension Plan | 92-6003463-024 | Red | Red | Yes | 516 | 241 | — | Yes | Oct-17 | ||||||||||||||||
Central States, Southeast, and Southwest Areas Pension Plan | 36-6044243-001 | Red | Red | Yes | — | — | 22 | Yes | -1 | ||||||||||||||||
All other plans | 22,827 | 19,076 | 22,486 | ||||||||||||||||||||||
Total | $ | 71,204 | $ | 55,054 | $ | 63,572 | |||||||||||||||||||
-1 | Quanta believes that it effected a complete withdrawal from the Central States, Southeast, and Southwest Areas Pension Plan as of December 31, 2012. See Legal Proceedings — Collective Bargaining Agreements for additional information. | ||||||||||||||||||||||||
Quanta’s contributions to the following plans were five percent or more of the total contributions to these plans for the periods indicated based on the Forms 5500 for these plans for the years ended December 31, 2013 and 2012. Forms 5500 were not yet available for these plans for the year ended December 31, 2014. | |||||||||||||||||||||||||
Pension Fund | Plan Years in which | ||||||||||||||||||||||||
Quanta | |||||||||||||||||||||||||
Contributions Were | |||||||||||||||||||||||||
Five Percent or More | |||||||||||||||||||||||||
of Total Plan | |||||||||||||||||||||||||
Contributions | |||||||||||||||||||||||||
Pipeline Industry Pension Fund | 2013 and 2012 | ||||||||||||||||||||||||
Michigan Upper Peninsula Intrl Brotherhood of Elec Workers Pension Plan | 2013 and 2012 | ||||||||||||||||||||||||
Eighth District Electrical Pension Fund | 2013 and 2012 | ||||||||||||||||||||||||
Laborers National Pension Fund | 2013 | ||||||||||||||||||||||||
Joint Pension Local Union 164 IBEW | 2013 | ||||||||||||||||||||||||
In addition to the contributions made to multi-employer defined benefit pension plans noted above, Quanta also contributed to multi-employer defined contribution or other benefit plans on behalf of certain union employees. Contributions to union multi-employer defined contribution or other benefit plans by Quanta were approximately $129.0 million, $104.4 million and $87.0 million for the years ended December 31, 2014, 2013 and 2012. Total contributions made to these plans for the years ended December 31, 2014, 2013 and 2012 correspond to the number of union employees employed at any given time and the plans in which they participate and varies depending upon the location and number of ongoing projects at a given time and the need for union resources in connection with such projects. | |||||||||||||||||||||||||
Quanta 401(k) Plan | |||||||||||||||||||||||||
Quanta maintains a 401(k) plan pursuant to which employees who are not provided retirement benefits through a collective bargaining agreement may make contributions through a payroll deduction. Quanta makes matching cash contributions of 100% of each employee’s contribution up to 3% of that employee’s salary and 50% of each employee’s contribution between 3% and 6% of such employee’s salary, up to the maximum amount permitted by law. Contributions to non-union defined contribution plans by Quanta were approximately $14.3 million, $11.8 million and $11.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Deferred Compensation Plan | |||||||||||||||||||||||||
Quanta maintains a nonqualified deferred compensation plan pursuant to which non-employee directors and certain key employees, independent contractors and consultants may defer receipt of some or all of their cash compensation and/or settlement of their equity-based awards, subject to certain limitations. The plan provides for employer matching contributions for certain officers and employees whose benefits under the 401(k) plan are limited by federal tax law. Quanta may also make discretionary employer contributions to the plan. Matching contributions and discretionary employer contributions are subject to a vesting schedule, provided that vesting accelerates upon a change in control and the participant’s death or retirement. All matching and discretionary employer contributions, whether vested or not, are forfeited upon a participant’s termination of employment for cause or upon the participant engaging in competition with Quanta or any of its affiliates. | |||||||||||||||||||||||||
Contributions to the deferred compensation plan by Quanta were approximately $0.3 million during the year ended December 31, 2014. There were no contributions to the plan during the years ended December 31, 2013 or 2012. At December 31, 2014, $2.3 million was included in other long-term liabilities and $2.0 million was included in other long-term assets related to obligations under this plan and related company-owned life insurance policies. Individuals participating in this plan receive distributions of their respective balances based on predetermined payout schedules or other events, as defined by the plan and are also able to direct investments made on their behalf among investment alternatives permitted from time to time under the plan. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Dec. 31, 2014 | ||
Related Party Transactions [Abstract] | ||
Related Party Transactions | 14 | RELATED PARTY TRANSACTIONS: |
Certain of Quanta’s operating units have entered into related party lease arrangements for operational facilities, typically with prior owners of certain acquired businesses. These lease agreements generally have terms of up to five years and include renewal options. Related party lease expense for the years ended December 31, 2014, 2013 and 2012 was approximately $8.7 million, $4.6 million and $4.2 million, respectively. | ||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 15 | COMMITMENTS AND CONTINGENCIES: | |||
Investments in Affiliates and Other Entities | |||||
As described in Note 11, Quanta holds investments in certain joint ventures with third parties for the purpose of providing infrastructure services under certain customer contracts. Losses incurred by these joint ventures are generally shared equally by the joint venture members. However, each member of the joint venture typically is jointly and severally liable for all of the obligations of the joint venture under the contract with the customer and therefore can be liable for full performance of the contract with the customer. In circumstances where Quanta’s participation in a joint venture qualifies as a general partnership, the joint venture partners are jointly and severally liable for all of the obligations of the joint venture including obligations owed to the customer or any other person or entity. Quanta is not aware of circumstances that would lead to future claims against it for material amounts in connection with these joint and several liabilities. | |||||
In the joint venture arrangements entered into by Quanta, typically each joint venturer indemnifies the other party for any liabilities incurred in excess of the liabilities such other party is obligated to bear under the respective joint venture agreement. It is possible, however, that Quanta could be required to pay or perform obligations in excess of its share if the other joint venturer failed or refused to pay or perform its share of the obligations. Quanta is not aware of circumstances that would lead to future claims against it for material amounts that would not be indemnified. | |||||
During the fourth quarter of 2014, a limited partnership in which Quanta is a partner, was selected for an engineering, procurement and construction (EPC) electric transmission project to construct a 500 kV transmission project consisting of approximately 500 kilometers of transmission line and two 500 kV substations. Additionally, Quanta will provide turnkey EPC services for the entire project. As of December 31, 2014, Quanta had outstanding capital commitments associated with investments in unconsolidated affiliates related to this project as follows (in thousands) : | |||||
Capital Commitments | |||||
Year Ending December 31: | |||||
2015 | $ | 5,164 | |||
2016 | 9,168 | ||||
2017(1) | 36,891 | ||||
2018 | — | ||||
2019 | 27,242 | ||||
Thereafter | — | ||||
Total capital commitments associated with investments in unconsolidated affiliated related to an EPC electrical transmission project | $ | 78,465 | |||
-1 | A return of capital from unconsolidated affiliates of approximately $48.7 million is anticipated in August 2017. | ||||
Additionally, as of December 31, 2014, Quanta had outstanding capital commitments associated with investments in unconsolidated affiliates related to planned midstream infrastructure projects of approximately $10.1 million. Except for $0.8 million which was paid in the first quarter of 2015, Quanta is unable to determine the exact timing of these capital commitments but anticipates them to be paid by June 1, 2017. | |||||
Leases | |||||
Quanta leases certain land, buildings and equipment under non-cancelable lease agreements, including related party leases as discussed in Note 14. The terms of these agreements vary from lease to lease, including some with renewal options and escalation clauses. The following schedule shows the future minimum lease payments under these leases as of December 31, 2014 (in thousands): | |||||
Operating | |||||
Leases | |||||
Year Ending December 31: | |||||
2015 | $ | 79,441 | |||
2016 | 49,455 | ||||
2017 | 39,462 | ||||
2018 | 29,043 | ||||
2019 | 14,716 | ||||
Thereafter | 23,470 | ||||
Total minimum lease payments | $ | 235,587 | |||
Rent expense related to operating leases was approximately $162.5 million, $112.8 million and $92.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Quanta has guaranteed the residual value on certain of its equipment operating leases. Quanta has agreed to pay any difference between this residual value and the fair market value of the underlying asset at the date of termination of the leases. At December 31, 2014, the maximum guaranteed residual value was approximately $434.2 million. Quanta believes that no significant payments will be made as a result of the difference between the fair market value of the leased equipment and the guaranteed residual value. However, there can be no assurance that significant payments will not be required in the future. | |||||
Committed Capital Expenditures | |||||
Quanta has committed capital for the expansion of its fiber optic network, although Quanta typically does not commit capital to new network expansions until it has a committed licensing arrangement in place with at least one customer. The amounts of committed capital expenditures are estimates of costs required to build the networks under contract. The actual capital expenditures related to building the networks could vary materially from these estimates. As of December 31, 2014, Quanta estimates these committed capital expenditures to be approximately $16.8 million for the year ended December 31, 2015. Quanta also committed capital for the expansion of its vehicle fleet in order to accommodate manufacturer lead times on certain types of vehicles. As of December 31, 2014, production orders for approximately $5.6 million had been issued with delivery dates expected to occur throughout 2015. Although Quanta has committed to purchase these vehicles at the time of their delivery, Quanta intends that these orders will be assigned to third party leasing companies and made available to Quanta under certain of its master equipment lease agreements, thereby releasing Quanta from its capital commitments. | |||||
Legal Proceedings | |||||
Quanta is from time to time party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract and/or property damages, employment-related damages, punitive damages, civil penalties or other losses, or injunctive or declaratory relief. With respect to all such lawsuits, claims and proceedings, Quanta records a reserve when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In addition, Quanta discloses matters for which management believes a material loss is at least reasonably possible. Except as otherwise stated below, none of these proceedings, separately or in the aggregate, are expected to have a material adverse effect on Quanta’s consolidated financial position, results of operations or cash flows. In all instances, management has assessed the matter based on current information and made a judgment concerning its potential outcome, giving due consideration to the nature of the claim, the amount and nature of damages sought and the probability of success. Management’s judgment may prove materially inaccurate, and such judgment is made subject to the known uncertainties of litigation. | |||||
Sunrise Powerlink Arbitration. On April 21, 2010, PAR entered into a contract with SDG&E to construct a 117-mile electrical transmission line in Imperial and San Diego Counties, California, known as the Sunrise Powerlink project. Construction commenced on November 17, 2010, with commercial operations beginning on June 17, 2012. PAR alleged that during the construction phase, SDG&E directed multiple changes to the construction schedule that required us to significantly increase our resources to the project in order to meet SDG&E’s required completion date. Further, PAR contended that the project experienced numerous impacts beyond our control such as access delays and restrictions, as well as problems with customer supplied materials to the project. Following completion of the project, PAR had multiple meetings with SDG&E to review project scope, costs and performance criteria in an attempt to resolve the amount owed to PAR. SDG&E also conducted an audit of PAR’s records, which resulted in confirmation of PAR’s direct costs incurred in completing the project, but not a resolution of the final amount owed to PAR. PAR previously recorded a long-term contract receivable in the amount of approximately $165 million in connection with contract price adjustments related to the Sunrise Powerlink project. | |||||
In October 2013, PAR initiated arbitration proceedings against SDG&E alleging breach of contract and seeking compensation for additional costs incurred at SDG&E’s direction to complete the project. SDG&E filed a counterclaim for breach of contract seeking approximately $32 million for PAR’s alleged untimely performance. During the third quarter of 2014, Quanta evaluated the legal theories and strategies most advantageous to pursue relative to its position in the arbitration at the time, which resulted in a change in expected strategy for collecting the receivable. This change in approach caused Quanta to revise its estimate of expected outcomes and to record an adjustment to the net realizable value of this long-term contract receivable. A provision of $52.5 million was recognized in the three months ended September 30, 2014 as a charge to selling, general and administrative expense to reflect the impact of these changes in our assessment of the collectability of this long-term contract receivable. PAR subsequently amended its arbitration demand in October 2014 and asserted a claim for damages in excess of $113 million including interest and other relief to which it was entitled. In December 2014, the parties reached an agreement to dismiss the arbitration. The settlement terms provided for a cash payment by SDG&E to PAR in the amount of $65 million, representing the final amount to compensate PAR for substantially all of the unpaid portion of PAR’s costs incurred on the project. As a result, an additional provision of $49.9 million was recognized in the three months ended December 31, 2014 as a charge to selling, general and administrative expense to reflect the impact of this settlement. Payment was received in January 2015, and the arbitration was dismissed shortly thereafter. | |||||
Lorenzo Benton v. Telecom Network Specialists, Inc., et al. In June 2006, Plaintiff Lorenzo Benton filed a class action complaint in the Superior Court of California, County of Los Angeles, alleging various wage and hour violations against Telecom Network Specialists (TNS), a former subsidiary of Quanta. Benton seeks to represent a class of workers that includes all persons who worked on TNS projects between June 2002 and the present, including individuals that TNS retained through 29 staffing agencies. An amended complaint was filed in August 2007, naming two additional class representatives, one of whom has since settled directly with his employer. Plaintiffs’ motion for class certification was heard and denied in May 2012. Plaintiffs appealed the denial of class certification, and in October 2013, the California Court of Appeal reversed the denial and remanded the case to the trial court for reconsideration. In November 2013, TNS filed a petition for review with the Supreme Court of California, which was denied. The parties attended mediation in December 2014, however, there was no resolution. Accordingly, the deadline for Plaintiffs to file their motion for class certification in the remanded proceeding is March 19, 2015. Plaintiffs seek approximately $16 million for class damages and $5 million in attorneys’ fees. Quanta retained any liability associated with this matter following its sale of TNS in December 2012. | |||||
Additionally, in November 2007, TNS filed cross complaints for indemnity against the staffing agencies, which employed many of the individuals in the putative class. In December 2012, the trial court heard cross-motions for summary judgment filed by TNS and the staffing agencies pertaining to TNS’s demand for indemnity. The court denied TNS’s motion and granted the motions filed by the staffing agencies. TNS appealed the court’s ruling. The appeal is fully briefed, but a date for oral argument has not been set. At this time, Quanta does not believe this matter will have a material adverse effect on its consolidated financial position, results of operations or cash flows. | |||||
National Gas Company of Trinidad and Tobago Arbitration. On October 1, 2010, Mears Group, Inc. (Mears), a wholly owned subsidiary of Quanta, filed a request for arbitration with the International Chamber of Commerce in London against the National Gas Company of Trinidad and Tobago (NGC). The request for arbitration arose out of a contract between Mears and NGC for directional drilling services in connection with a shore approach of a natural gas pipeline. During pullback of the pipeline, a component on the drill rig operated by Mears failed, and the pipeline was lodged downhole. Subsequent efforts to salvage the pipeline by NGC, Mears and other parties failed to dislodge the pipeline. NGC subsequently hired a separate contractor to complete reworks. | |||||
Mears alleged breach of contract, among other things, and sought recovery for works performed, standby costs, demobilization costs, and other expenses, totaling approximately $16.5 million, plus pre-judgment interest and attorneys’ fees and expenses. In addition, Mears argued that NGC failed to provide a contractually required builders all-risk insurance policy naming Mears as an additional insured, which would have covered losses associated with a pullback failure. NGC counterclaimed in the arbitration, asserting that Mears breached the contract and performed negligently, and sought recovery for the costs of the salvage operations, the cost of the reworks, as well as other costs, totaling approximately $79.5 million, plus pre-judgment interest and attorneys’ fees and expenses. | |||||
The arbitration hearings were completed during the third quarter of 2012. On March 20, 2014, the arbitration panel issued a decision awarding NGC $17.3 million in damages plus interest and NGC attorneys’ fees of approximately $11.0 million. As a result, Mears was unsuccessful in recovering any amounts sought in its claim against NGC and wrote off approximately $10.5 million of accounts receivable associated with the NGC contract, resulting in an aggregate $38.8 million charge to selling, general and administrative expenses in the three months ended March 31, 2014 and in the year ended December 31, 2014. Quanta paid the $28.3 million in damages plus interest and NGC attorneys’ fees in April 2014. | |||||
SEC Notice. On March 10, 2014, the SEC notified Quanta of an inquiry into certain aspects of Quanta’s activities in certain foreign jurisdictions, including South Africa and the United Arab Emirates. The SEC also requested that Quanta take necessary steps to preserve and retain categories of relevant documents, including those pertaining to Quanta’s U.S. Foreign Corrupt Practices Act compliance program. The SEC has not alleged any violations of law by Quanta or its employees. Quanta has complied with the preservation request and is cooperating with the SEC. | |||||
For additional information regarding other pending legal proceedings, see Collective Bargaining Agreements in this Note 15. | |||||
Concentrations of Credit Risk | |||||
Quanta is subject to concentrations of credit risk related primarily to its cash and cash equivalents and accounts receivable, including amounts related to unbilled accounts receivable and costs and estimated earnings in excess of billings on uncompleted contracts. Substantially all of Quanta’s cash investments are managed by what it believes to be high credit quality financial institutions. In accordance with Quanta’s investment policies, these institutions are authorized to invest this cash in a diversified portfolio of what Quanta believes to be high quality investments, which consist primarily of interest-bearing demand deposits, money market mutual funds and investment grade commercial paper with original maturities of three months or less. Although Quanta does not currently believe the principal amount of these investments is subject to any material risk of loss, changes in economic conditions could impact the interest income Quanta receives from these investments. In addition, Quanta grants credit under normal payment terms, generally without collateral, to its customers, which include electric power, oil and gas companies, governmental entities, general contractors, and builders, owners and managers of commercial and industrial properties located primarily in the United States, Canada and Australia. Consequently, Quanta is subject to potential credit risk related to changes in business and economic factors throughout the United States, Canada and Australia, which may be heightened as a result of uncertain economic and financial market conditions that have existed in recent years. However, Quanta generally has certain statutory lien rights with respect to services provided. Historically, some of Quanta’s customers have experienced significant financial difficulties, and others may experience financial difficulties in the future. These difficulties expose Quanta to increased risk related to collectability of billed and unbilled receivables and costs and estimated earnings in excess of billings on uncompleted contracts for services Quanta has performed. | |||||
As of December 31, 2013, two customers accounted for approximately 15% and 11% of consolidated net position. The services provided to these customers related primarily to Quanta’s Electric Power Infrastructure Services segment. Substantially all of the balance for the customer accounting for 11% of Quanta’s consolidated net position at December 31, 2013 related to the Sunrise Powerlink project, which had a long-term receivable balance related to a significant change order. This receivable was the subject of an arbitration proceeding that was dismissed in January 2015 pursuant to a December 2014 settlement agreement. For additional information, see Current and Long-Term Accounts and Notes Receivable and Allowance for Doubtful Accounts and Revenue Recognition in Note 2 and Legal Proceedings — Sunrise Powerlink Arbitration within this Note 15. No other customers represented 10% or more of Quanta’s consolidated net position as of December 31, 2013. No customers represented 10% or more of Quanta’s revenues for the years ended December 31, 2014, 2013 and 2012 or 10% or more of Quanta’s consolidated net position as of December 31, 2014. | |||||
Self-Insurance | |||||
As discussed in Note 2, Quanta is insured for employer’s liability, general liability, auto liability and workers’ compensation claims. As of December 31, 2014 and 2013, the gross amount accrued for insurance claims totaled $170.2 million and $161.8 million, with $130.8 million and $122.6 million considered to be long-term and included in other non-current liabilities. Related insurance recoveries/receivables as of December 31, 2014 and 2013 were $9.1 million and $9.1 million, of which $0.8 million and $0.7 million were included in prepaid expenses and other current assets and $8.3 million and $8.4 million were included in other assets, net. | |||||
Letters of Credit | |||||
Certain of Quanta’s vendors require letters of credit to ensure reimbursement for amounts they are disbursing on its behalf, such as to beneficiaries under its self-funded insurance programs. In addition, from time to time, certain customers require Quanta to post letters of credit to ensure payment to its subcontractors and vendors and to guarantee performance under its contracts. Such letters of credit are generally issued by a bank or similar financial institution, typically pursuant to Quanta’s credit facility. Each letter of credit commits the issuer to pay specified amounts to the holder of the letter of credit if the holder demonstrates that Quanta has failed to perform specified actions. If this were to occur, Quanta would be required to reimburse the issuer of the letter of credit. Depending on the circumstances of such a reimbursement, Quanta may also be required to record a charge to earnings for the reimbursement. Quanta does not believe that it is likely that any material claims will be made under a letter of credit in the foreseeable future. | |||||
As of December 31, 2014, Quanta had $336.7 million in outstanding letters of credit and bank guarantees under its credit facility to secure its casualty insurance program and various contractual commitments. These are irrevocable stand-by letters of credit with maturities generally expiring at various times throughout 2015. Upon maturity, it is expected that the majority of the letters of credit related to the casualty insurance program will be renewed for subsequent one-year periods. | |||||
Performance Bonds and Parent Guarantees | |||||
In certain circumstances, Quanta is required to provide performance bonds in connection with its contractual commitments. Quanta has indemnified its sureties for any expenses paid out under these performance bonds. These performance bonds expire at various times ranging from mechanical completion of the related projects to a period extending beyond contract completion in certain circumstances, and as such, a determination of maximum potential amounts outstanding requires the use of certain estimates and assumptions. Such amounts can also fluctuate from period to period based upon the mix and level of Quanta’s bonded operating activity. As of December 31, 2014, the total amount of the outstanding performance bonds was estimated to be approximately $2.8 billion. Quanta’s estimated maximum exposure as it relates to the value of the bonds outstanding is lowered on each bonded project as the cost to complete is reduced, and each of its commitments under the performance bonds generally extinguishes concurrently with the expiration of its related contractual obligation. The estimated cost to complete these bonded projects was approximately $701 million as of December 31, 2014. | |||||
Quanta, from time to time, guarantees the obligations of its wholly owned subsidiaries, including obligations under certain contracts with customers, certain lease obligations and, in some states, obligations in connection with obtaining contractors’ licenses. Quanta is not aware of any material obligations for performance or payment asserted against it under any of these guarantees. | |||||
Employment Agreements | |||||
Quanta has various employment agreements with certain executives and other employees, which provide for compensation and certain other benefits and for severance payments under certain circumstances. Certain employment agreements also contain clauses that become effective upon a change of control of Quanta. Quanta may be obligated to pay certain amounts to such employees upon the occurrence of any of the defined events in the various employment agreements. | |||||
Collective Bargaining Agreements | |||||
Some of Quanta’s operating units are parties to various collective bargaining agreements with unions that represent certain of their employees. The collective bargaining agreements expire at various times and have typically been renegotiated and renewed on terms similar to those in the expiring agreements. From time to time, Quanta is a party to grievance actions based on claims arising out of the collective bargaining agreements. The agreements require the operating units to pay specified wages, provide certain benefits to their union employees and contribute certain amounts to multi-employer pension plans and employee benefit trusts. Quanta’s multi-employer pension plan contribution rates generally are specified in the collective bargaining agreements (usually on an annual basis), and contributions are made to the plans on a “pay-as-you-go” basis based on its union employee payrolls. The location and number of union employees that Quanta employs at any given time and the plans in which they may participate vary depending on the projects Quanta has ongoing at any time and the need for union resources in connection with those projects. Therefore, Quanta is unable to accurately predict its union employee payroll and the amount of the resulting multi-employer pension plan contribution obligation for future periods. | |||||
The PPA also added special funding and operational rules generally applicable to plan years beginning after 2007 for multi-employer plans that are classified as “endangered,” “seriously endangered” or “critical” status based on multiple factors (including, for example, the plan’s funded percentage, cash flow position and whether it is projected to experience a minimum funding deficiency). Plans in these classifications must adopt measures to improve their funded status through a funding improvement or rehabilitation plan, as applicable, which may require additional contributions from employers (which may take the form of a surcharge on benefit contributions) and/or modifications to retiree benefits. Certain plans to which Quanta contributes or may contribute in the future are in “endangered,” “seriously endangered” or “critical” status. The amount of additional funds, if any, that Quanta may be obligated to contribute to these plans in the future cannot be estimated due to uncertainty of the future levels of work that require the specific use of union employees covered by these plans, as well as the future contribution levels and possible surcharges on contributions applicable to these plans. | |||||
Quanta may be subject to additional liabilities imposed by law as a result of its participation in multi-employer defined benefit pension plans. For example, the Employee Retirement Income Security Act of 1974, as amended by the Multi-Employer Pension Plan Amendments Act of 1980, imposes certain liabilities upon an employer who is a contributor to a multi-employer pension plan if the employer withdraws from the plan or the plan is terminated or experiences a mass withdrawal. These liabilities include an allocable share of the unfunded vested benefits in the plan for all plan participants, not merely the benefits payable to a contributing employer’s own retirees. As a result, participating employers may bear a higher proportion of liability for unfunded vested benefits if other participating employers cease to contribute or withdraw, with the reallocation of liability being more acute in cases when a withdrawn employer is insolvent or otherwise fails to pay its withdrawal liability. Other than as described below, Quanta is not aware of any material amounts of withdrawal liability that have been incurred as a result of a withdrawal by any of Quanta’s operating units from any multi-employer defined benefit pension plans. | |||||
In the fourth quarter of 2011, Quanta recorded a partial withdrawal liability of approximately $32.6 million related to the withdrawal by certain Quanta subsidiaries from the Central States, Southeast and Southwest Areas Pension Plan (the Central States Plan). The partial withdrawal liability recognized by Quanta was based on estimates received from the Central States Plan during 2011 for a complete withdrawal by all Quanta companies participating in the Central States Plan. The withdrawal followed an amendment to a collective bargaining agreement with the International Brotherhood of Teamsters (Teamsters) that eliminated obligations to contribute to the Central States Plan, which is in critical status and is significantly underfunded as to its vested benefit obligations. The amendment was negotiated by the Pipe Line Contractors Association (PLCA) on behalf of its members, which include the Quanta subsidiaries that withdrew from the Central States Plan. Quanta believed that withdrawing from the Central States Plan in the fourth quarter of 2011 was advantageous because it limited Quanta’s exposure to increased liabilities from a future withdrawal if the underfunded status of the Central States Plan deteriorates further. Quanta and other PLCA members now contribute to a different multi-employer pension plan on behalf of Teamsters employees. | |||||
The Central States Plan asserted that the withdrawal of the PLCA members was not effective in 2011, although Quanta believed at that time that a legally effective withdrawal had occurred during the fourth quarter of 2011. Although the federal district court for the Northern District of Illinois, Eastern Division, ruled that the withdrawal of the PLCA members was not effective in 2011, the PLCA appealed the decision, and the outcome of that appeal remains uncertain. Certain other Quanta subsidiaries continued participation in the Central States Plan, and Quanta believes that it subsequently effected a complete withdrawal as of December 30, 2012. | |||||
In December 2013, the Central States Plan filed separate lawsuits against two of Quanta’s subsidiaries. In the first lawsuit, the Central States Plan alleged that a Quanta subsidiary elected to participate in the Central States Plan pursuant to the collective bargaining agreement under which it participates. The subsidiary argued that no such election was made and that any payments made by the subsidiary to the Central States Plan were made in error. The parties recently reached an agreement in principle to settle this lawsuit, pursuant to which, among other things, the Central States Plan agreed to return the payments made by the subsidiary. In the second lawsuit, the Central States Plan alleges that contributions made by another Quanta subsidiary to a new industry fund that was created after Quanta withdrew from the Central States Plan should have been made to the Central States Plan. This arguably would extend the date of withdrawal for this subsidiary to 2014. Quanta has disputed these allegations on the basis that it has properly paid contributions to the new industry fund based on the terms of the collective bargaining agreement under which it participates. | |||||
In March 2014, one of the Quanta subsidiaries was notified of a joint grievance committee decision relating to a separate grievance matter concluding that the Quanta subsidiary should have hired Teamsters under a specific collective bargaining agreement to perform certain jobs. This matter was subsequently resolved with the Teamsters, effectively resulting in an award of wages and benefits (including pension contributions) to the two Teamsters employees under an alternate collective bargaining agreement that is not related to the Central States Plan. In addition, in March 2014, the Central States Plan provided revised estimates indicating that the withdrawal liability based on certain withdrawal scenarios from 2011 through 2014 could range between $40.1 million and $55.4 million. In July 2014, the Central States Plan provided Quanta with a Notice and Demand of partial withdrawal liability for certain Quanta entities in the amount of $39.6 million. Quanta continues to dispute the total withdrawal liability owed to the Central States Plan. However, Quanta began to make monthly payments associated with this Notice and Demand in the third quarter of 2014 while the parties continue the related process to determine the final withdrawal liability. The amount owed upon resolution of this matter will be reduced by these monthly payments made. | |||||
The ultimate liability associated with the complete withdrawal of Quanta’s subsidiaries from the Central States Plan will depend on various factors, including interpretations of the terms of the collective bargaining agreements under which the subsidiaries participated and whether exemptions from withdrawal liability applicable to construction industry employers will be available. Based on the previous estimates of liability associated with a complete withdrawal from the Central States Plan, and allowing for the exclusion of amounts believed by management to have been improperly included in such estimate, Quanta will seek to challenge and further negotiate the amount owed in connection with this matter. However, Quanta recorded an adjustment to cost of services during the three months ended March 31, 2014 to increase the recognized withdrawal liability to an amount within the range communicated to Quanta by the Central States Plan. Quanta believes that the range of reasonable possible loss associated with the Central States Plan is up to $55.4 million. Given the unknown nature of some of the factors mentioned above, the final withdrawal liability cannot yet be determined with certainty. Accordingly, it is reasonably possible that the amount owed upon final resolution of these matters could be materially higher than the liability Quanta has recognized through December 31, 2014. | |||||
On October 9, 2013, Quanta acquired a company that experienced a complete withdrawal from the Central States Plan prior to the date of acquisition. The Central States Plan issued a Notice and Demand dated March 13, 2013 to the acquired company for a withdrawal liability in the total amount of $6.9 million payable in installments. Based on legal arguments, the acquired company took the position that the amount of withdrawal liability payable to the Central States Plan as a result of its complete withdrawal was $4.8 million, of which approximately $3.1 million remained outstanding as of December 31, 2014. The acquired company and Quanta have taken steps to challenge the amount of the assessment by the Central States Plan; however, payments in accordance with the terms of the Central States Plan’s demand letter are required to be made while the dispute is ongoing. Approximately $2.1 million of the purchase price was deposited into an escrow account on October 9, 2013 to fund any withdrawal obligation in excess of the $4.8 million initially demanded. Accordingly, the acquired company’s withdrawal from the Central States Plan is not expected to have a material impact on Quanta’s financial condition, results of operations or cash flows. | |||||
Indemnities | |||||
Quanta generally indemnifies its customers for the services it provides under its contracts, as well as other specified liabilities, which may subject Quanta to indemnity claims and liabilities and related litigation. Quanta has also indemnified various parties against specified liabilities that those parties might incur in the future in connection with Quanta’s previous acquisition or disposition of certain companies. The indemnities under acquisition or disposition agreements are usually contingent upon the other party incurring liabilities that reach specified thresholds. As of December 31, 2014, except as otherwise set forth above in Legal Proceedings, Quanta does not believe any material liabilities for claims exist against it in connection with any of these indemnity obligations. | |||||
In the normal course of Quanta’s acquisition transactions, Quanta obtains rights to indemnification from the sellers or former owners of acquired companies for certain risks, liabilities and obligations arising from their prior operations, such as performance, operational, safety, workforce or tax issues, some of which Quanta may not have discovered during due diligence. Quanta is in the process of identifying certain pre-acquisition obligations associated with non-U.S. payroll taxes that may be due from a business acquired by Quanta in 2013. Quanta may seek recovery from the indemnity counterparties for any amounts that Quanta may be required to pay in connection with such pre-acquisition matters. However, the indemnities may not cover all of Quanta’s exposure for such pre-acquisition matters, as the indemnities under acquisition agreements are usually contingent upon Quanta incurring liabilities that reach specified thresholds, and the indemnitors may be unwilling or unable to pay the amounts owed to Quanta. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Information | 16 | SEGMENT INFORMATION: | |||||||||||
Quanta presents its operations under three reportable segments: (1) Electric Power Infrastructure Services, (2) Oil and Gas Infrastructure Services and (3) Fiber Optic Licensing and Other. This structure is generally based on the broad end-user markets for Quanta’s services. See Note 1 for additional information regarding Quanta’s reportable segments. | |||||||||||||
Quanta’s segment results are derived from the types of services provided across its operating units in each of the end user markets described above. Quanta’s entrepreneurial business model allows each of its operating units to serve the same or similar customers and to provide a range of services across end user markets. Quanta’s operating units are organized into one of three internal divisions, namely, the Electric Power Division, the Oil and Gas Infrastructure Division and the Fiber Optic Licensing Division. These internal divisions are closely aligned with the reportable segments described above based on their operating units’ predominant type of work. | |||||||||||||
Reportable segment information, including revenues and operating income by type of work, is gathered from each operating unit for the purpose of evaluating segment performance in support of Quanta’s market strategies. These classifications of Quanta’s operating unit revenues by type of work for segment reporting purposes can at times require judgment on the part of management. Quanta’s operating units may perform joint infrastructure service projects for customers in multiple industries, deliver multiple types of network services under a single customer contract or provide service across industries, for example, joint trenching projects to install distribution lines for electric power and natural gas customers. | |||||||||||||
In addition, Quanta’s integrated operations and common administrative support at each of its operating units require that certain allocations, including allocations of shared and indirect costs, such as facility costs, indirect operating expenses, including depreciation, and general and administrative costs, be made to determine operating segment profitability. Corporate costs, such as payroll and benefits, employee travel expenses, facility costs, professional fees, acquisition costs and amortization related to certain intangible assets are not allocated. | |||||||||||||
Summarized financial information for Quanta’s reportable segments is presented in the following table (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues: | |||||||||||||
Electric Power Infrastructure | $ | 5,238,627 | $ | 4,480,647 | $ | 4,206,509 | |||||||
Oil and Gas Infrastructure | 2,444,558 | 1,869,615 | 1,534,713 | ||||||||||
Fiber Optic Licensing and Other | 168,065 | 172,580 | 179,047 | ||||||||||
Consolidated | $ | 7,851,250 | $ | 6,522,842 | $ | 5,920,269 | |||||||
Operating income (loss): | |||||||||||||
Electric Power Infrastructure | $ | 458,332 | $ | 521,855 | $ | 520,834 | |||||||
Oil and Gas Infrastructure | 162,797 | 138,543 | 55,410 | ||||||||||
Fiber Optic Licensing and Other | 54,386 | 55,415 | 61,299 | ||||||||||
Corporate and non-allocated costs | (199,940 | ) | (188,885 | ) | (172,421 | ) | |||||||
Consolidated | $ | 475,575 | $ | 526,928 | $ | 465,122 | |||||||
Depreciation: | |||||||||||||
Electric Power Infrastructure | $ | 74,723 | $ | 63,407 | $ | 55,205 | |||||||
Oil and Gas Infrastructure | 57,414 | 47,050 | 43,285 | ||||||||||
Fiber Optic Licensing and Other | 18,495 | 16,786 | 15,173 | ||||||||||
Corporate and non-allocated costs | 7,478 | 6,867 | 6,640 | ||||||||||
Consolidated | $ | 158,110 | $ | 134,110 | $ | 120,303 | |||||||
Separate measures of Quanta’s assets and cash flows by reportable segment, including capital expenditures, are not produced or utilized by management to evaluate segment performance. Quanta’s fixed assets, which are held at the operating unit level, include operating machinery, equipment and vehicles, as well as office equipment, buildings and leasehold improvements, are used on an interchangeable basis across its reportable segments. As such, for reporting purposes, total depreciation expense is allocated each quarter among Quanta’s reportable segments based on the ratio of each reportable segment’s revenue contribution to consolidated revenues. | |||||||||||||
Foreign Operations | |||||||||||||
During 2014, 2013, and 2012, Quanta derived $1.89 billion, $1.31 billion and $861.5 million, respectively, of its revenues from foreign operations. Of Quanta’s foreign revenues, approximately 82%, 86% and 96% was earned in Canada during the years ended December 31, 2014, 2013 and 2012, respectively. In addition, Quanta held property and equipment of $372.9 million and $196.8 million in foreign countries, primarily Canada, as of December 31, 2014 and 2013. The increases in foreign revenues and assets were partially due to the timing of the non-U.S. acquisitions described in Note 5. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Data (Unaudited) | 17 | QUARTERLY FINANCIAL DATA (UNAUDITED): | |||||||||||||||
The table below sets forth the unaudited consolidated operating results by quarter for the years ended December 31, 2014 and 2013 (in thousands, except per share information). | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014:00:00 | |||||||||||||||||
Revenues | $ | 1,762,574 | $ | 1,864,550 | $ | 2,171,144 | $ | 2,052,982 | |||||||||
Gross profit | 272,071 | 281,448 | 352,971 | 327,030 | |||||||||||||
Net income | 58,648 | 85,444 | 100,015 | 70,975 | |||||||||||||
Net income attributable to common stock | 54,408 | 81,082 | 94,648 | 66,576 | |||||||||||||
Net income from continuing operations attributable to common stock | 54,408 | 81,082 | 94,648 | 67,203 | |||||||||||||
Earnings per share from continuing operations attributable to common stock — basic and diluted | $ | 0.25 | $ | 0.37 | $ | 0.43 | $ | 0.3 | |||||||||
2013:00:00 | |||||||||||||||||
Revenues | $ | 1,585,710 | $ | 1,474,377 | $ | 1,645,132 | $ | 1,817,623 | |||||||||
Gross profit | 238,273 | 241,284 | 273,053 | 302,843 | |||||||||||||
Net income | 76,857 | 74,726 | 98,409 | 171,317 | |||||||||||||
Net income attributable to common stock | 72,081 | 70,237 | 92,906 | 166,697 | |||||||||||||
Net income from continuing operations attributable to common stock | 72,081 | 70,237 | 92,906 | 166,697 | |||||||||||||
Earnings per share from continuing operations attributable to common stock — basic and diluted | $ | 0.34 | $ | 0.33 | $ | 0.43 | $ | 0.77 | |||||||||
During the third and fourth quarters of 2014, Quanta recorded charges of $52.5 million ($32.3 million net of tax) and $49.9 million ($30.3 million net of tax) associated with an electric power infrastructure services project completed in 2012. See Current and Long-Term Accounts and Notes Receivable and Allowance for Doubtful Accounts and Revenue Recognition in Note 2 and Legal Proceedings – Sunrise Powerlink Arbitration in Note 15. During the first quarter of 2014, Quanta recorded a charge of $38.8 million ($25.8 million net of tax) as a result of an arbitration decision related to a contract dispute on a 2010 directional drilling project. See Legal Proceedings – National Gas Company of Trinidad and Tobago Arbitration in Note 15. Additionally, during the fourth quarter of 2013, Quanta recorded a gain of $112.7 million ($70.5 million net of tax) on the sale of its equity ownership interest in HEP. See Investments in Affiliates and Other Entities in Note 2. | |||||||||||||||||
The sum of the individual quarterly earnings per share amounts may not equal year-to-date earnings per share as each period’s computation is based on the weighted average number of shares outstanding during the period. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2014 | ||
Subsequent Events [Abstract] | ||
Subsequent Events | 18 | SUBSEQUENT EVENTS: |
Acquisitions | ||
During the first quarter of 2015, Quanta has completed the acquisition of three companies. These acquisitions included an underground utility distribution contractor that provides services to gas and electric utilities in Canada, a supplier and material procurement specialist for the power and utility industry in Canada and a company that specializes in the engineering, procurement, construction, and commissioning of compression and surface facilities for the Australian high pressure gas industry. The aggregate consideration paid for these acquisitions was approximately $36.3 million in cash, subject to net working capital adjustments. As these transactions were effective during the first quarter of 2015, the results will be included in Quanta’s consolidated financial statements beginning on the respective dates of acquisition. These acquisitions should enable Quanta to further enhance its electric power and oil and gas infrastructure service offerings in Canada and Australia. | ||
Stock Repurchases | ||
During the first quarter of 2015, Quanta repurchased approximately 6.7 million shares of its common stock under its stock repurchase program at a cost of $182.0 million. | ||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Principles of Consolidation | Principles of Consolidation | ||||||||||||
The consolidated financial statements of Quanta include the accounts of Quanta Services, Inc. and its wholly owned subsidiaries, which are also referred to as its operating units. The consolidated financial statements also include the accounts of certain of Quanta’s investments in joint ventures, which are either consolidated or proportionately consolidated, as discussed in the following summary of significant accounting policies. Investments in affiliated entities in which Quanta does not have a controlling financial interest, but over which Quanta has significant influence, usually because Quanta holds a voting interest of between 20% and 50%, are accounted for using the equity method. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, references to Quanta include Quanta Services, Inc. and its consolidated subsidiaries. | |||||||||||||
Use of Estimates and Assumptions | Use of Estimates and Assumptions | ||||||||||||
The preparation of financial statements in conformity with US GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses recognized during the periods presented. Quanta reviews all significant estimates affecting its consolidated financial statements on a recurring basis and records the effect of any necessary adjustments prior to their publication. Judgments and estimates are based on Quanta’s beliefs and assumptions derived from information available at the time such judgments and estimates are made. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements. Estimates are primarily used in Quanta’s assessment of the allowance for doubtful accounts, valuation of inventory, useful lives of assets, fair value assumptions in analyzing goodwill, other intangibles and long-lived asset impairments, equity and other investments, loan receivables, purchase price allocations, liabilities for self-insured and other claims and guarantees, multi-employer pension plan withdrawal liabilities, revenue recognition for construction contracts inclusive of contractual change orders and claims, revenue recognition for fiber optic licensing, share-based compensation, operating results of reportable segments, as well as the provision for income taxes and the calculation of uncertain tax positions. | |||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||
Quanta had cash and cash equivalents of $190.5 million and $488.8 million as of December 31, 2014 and 2013. Cash consisting of interest-bearing demand deposits is carried at cost, which approximates fair value. Quanta considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents, which are carried at fair value. At December 31, 2014 and 2013, cash equivalents were $107.6 million and $247.8 million and consisted primarily of money market mutual funds and are discussed further in Fair Value Measurements below. As of December 31, 2014 and 2013, cash and cash equivalents held in domestic bank accounts were approximately $127.2 million and $236.7 million, and cash and cash equivalents held in foreign bank accounts were approximately $63.3 million and $252.1 million. As of December 31, 2014 and 2013, cash and cash equivalents held by Quanta’s investments in joint ventures, which are either consolidated or proportionately consolidated, were approximately $19.1 million and $18.9 million. Quanta has no rights with respect to the joint ventures’ cash except as permitted pursuant to their respective partnership agreements. | |||||||||||||
Current and Long-Term Accounts and Notes Receivable and Allowance for Doubtful Accounts | Current and Long-Term Accounts and Notes Receivable and Allowance for Doubtful Accounts | ||||||||||||
Quanta provides an allowance for doubtful accounts when collection of an account or note receivable is considered doubtful, and receivables are written off against the allowance when deemed uncollectible. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates regarding, among other factors, the customer’s access to capital, the customer’s willingness or ability to pay, general economic and market conditions, the ongoing relationship with the customer and uncertainties related to the resolution of disputed matters. Quanta considers accounts receivable delinquent after 30 days but does not generally include delinquent accounts in its analysis of the allowance for doubtful accounts unless the accounts receivable have been outstanding for at least 90 days. In addition to balances that have been outstanding for 90 days or more, Quanta also includes accounts receivable balances that relate to customers in bankruptcy or with other known difficulties in its analysis of the allowance for doubtful accounts. Material changes in Quanta’s customers’ business or cash flows, which may be impacted by negative economic and market conditions, could affect Quanta’s ability to collect amounts due from them. As of December 31, 2014 and 2013, Quanta had allowances for doubtful accounts on current receivables of approximately $6.2 million and $5.2 million. | |||||||||||||
Long-term accounts receivable are included within other assets, net on the consolidated balance sheets. Within this balance at December 31, 2013 was a long-term contract receivable previously recorded in the amount of approximately $165 million attributable to recognized contract price adjustments related to a change order from the Sunrise Powerlink project, an electric power infrastructure services project completed in 2012 by PAR Electrical Contractors, Inc. (PAR), a wholly owned subsidiary of Quanta, for San Diego Gas and Electric Company (SDG&E). This receivable was the subject of a recently settled arbitration proceeding discussed further in Legal Proceedings — Sunrise Powerlink Arbitration in Note 15. In December 2014, the parties reached an agreement to settle the arbitration under terms providing for a cash payment by SDG&E to PAR in the amount of $65 million, representing the final amount to compensate PAR for substantially all of the unpaid portion of its costs incurred on the project. Accordingly, a provision of $102.5 million was recognized in 2014 as a charge to selling, general and administrative expense, and the remaining balance of $65 million was reclassified to accounts receivable, leaving no balance remaining in other assets, net related to the Sunrise Powerlink project as of December 31, 2014. Payment was received in January 2015, and the arbitration was dismissed shortly thereafter. | |||||||||||||
Should customers experience financial difficulties or file for bankruptcy, or should anticipated recoveries relating to receivables in existing bankruptcies or other workout situations fail to materialize, Quanta could experience reduced cash flows and losses in excess of current allowances provided. | |||||||||||||
The balances billed but not paid by customers pursuant to retainage provisions in certain contracts are generally due upon completion of the contracts and acceptance by the customer. Based on Quanta’s experience with similar contracts in recent years, the majority of the retainage balances at each balance sheet date are expected to be collected within the next twelve months. Current retainage balances as of December 31, 2014 and 2013 were approximately $307.3 million and $194.5 million and were included in accounts receivable. Retainage balances with settlement dates beyond the next twelve months were included in other assets, net, and as of December 31, 2014 and 2013 were $19.6 million and $50.8 million. | |||||||||||||
Within accounts receivable, Quanta recognizes unbilled receivables in 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; costs have been incurred but are yet to be billed under cost-reimbursement type contracts; or amounts arise from routine lags in billing (for example, work completed one month but not billed until the next month). These balances do not include revenues accrued for work performed under fixed-price contracts as these amounts are recorded as costs and estimated earnings in excess of billings on uncompleted contracts. At December 31, 2014 and 2013, the balances of unbilled receivables included in accounts receivable were approximately $165.5 million and $179.2 million. | |||||||||||||
Inventories | Inventories | ||||||||||||
Inventories consist primarily of parts and supplies held for use in the ordinary course of business, which are valued by Quanta at the lower of cost or market as determined by using either the first-in, first-out (FIFO) method or the average costing method. Inventories also include certain job specific materials not yet installed which are valued using the specific identification method. | |||||||||||||
Property and Equipment | Property and Equipment | ||||||||||||
Property and equipment are stated at cost, and depreciation is computed using the straight-line method, net of estimated salvage values, over the estimated useful lives of the assets. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Depreciation expense related to property and equipment was approximately $158.1 million, $134.1 million and $120.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Quanta capitalizes costs associated with internally developed or constructed assets primarily associated with fiber optic licensing networks. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use assets, as well as payroll and payroll-related expenses for employees who are directly associated with and devote time to placing the assets into service. Capitalization of such costs is recorded to construction work-in-process beginning when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose, at which point in time the asset is placed into service. As of December 31, 2014 and 2013, approximately $30.6 million and $32.4 million related to fiber optic licensing networks were recorded in construction work-in-process. These capitalized costs are depreciated on a straight-line basis over the economic useful life of the asset, beginning when the asset is ready for its intended use. Accrued capital expenditures were $11.8 million and $0.6 million as of December 31, 2014 and 2013, and the impact of these items has been excluded from Quanta’s capital expenditures on its consolidated statements of cash flows due to their non-cash nature. | |||||||||||||
Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing equipment, are capitalized and depreciated over the adjusted remaining useful lives of the assets. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in selling, general and administrative expenses. | |||||||||||||
Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be realizable. Although no such events occurred during the years ended December 31, 2014, 2013 and 2012, if an evaluation is required, management would assess whether the carrying value of the asset group is recoverable by comparing the sum of the undiscounted cash flows to the carrying value of the asset group. If the asset is not recoverable, management compares the estimated fair value of the asset to the asset’s carrying amount to determine if an impairment of such asset is necessary. The effect of any impairment would be to expense the difference between the fair value of such asset and its carrying value in the period incurred. | |||||||||||||
Other Assets, Net | Other Assets, Net | ||||||||||||
Other assets, net consists primarily of long-term receivables, debt issuance costs, non-current inventory, equity and other investments, refundable security deposits for leased properties and insurance claims in excess of deductibles that are due from Quanta’s insurers. Included in the long-term receivables balance at December 31, 2013 was approximately $165 million related to the Sunrise Powerlink project. In 2014, Quanta recorded $102.5 million to provision for long-term contract receivable associated with the Sunrise Powerlink project receivable. The remaining balance of $65 million was reclassified to accounts receivable in the fourth quarter of 2014 as a result of the settlement of the arbitration in December 2014 and collection of the receivable in January 2015. Accordingly, as of December 31, 2014, there was no balance remaining in other assets, net related to the Sunrise Powerlink project. For additional information on this receivable and the associated arbitration proceeding, see Legal Proceedings — Sunrise Powerlink Arbitration in Note 15. | |||||||||||||
Debt Issuance Costs | Debt Issuance Costs | ||||||||||||
Capitalized debt issuance costs related to Quanta’s credit facility and any other debt outstanding at a given balance sheet date are included in other assets, net and are amortized into interest expense on a straight-line basis over the terms of the respective agreements giving rise to the debt issuance costs, which Quanta believes approximates the effective interest rate method. During 2013, Quanta incurred $3.2 million of debt issuance costs related to the amendment and restatement of its credit agreement and recorded $0.2 million of charges to interest expense for the write-off of a portion of the debt issuance costs related to the prior facilities. As of December 31, 2014 and 2013, capitalized debt issuance costs were $7.6 million, with accumulated amortization of $3.5 million and $2.4 million. For the years ended December 31, 2014, 2013 and 2012, amortization expense related to capitalized debt issuance costs was $1.1 million, $1.1 million and $0.9 million, respectively. | |||||||||||||
Goodwill and Other Intangibles | Goodwill and Other Intangibles | ||||||||||||
Quanta has recorded goodwill in connection with its historical acquisitions of companies. Upon acquisition, these companies have been either combined into one of Quanta’s existing operating units or managed on a stand-alone basis as an individual operating unit. Goodwill recorded in connection with these acquisitions is subject to an annual assessment for impairment, which Quanta performs at the operating unit level for each operating unit that carries a balance of goodwill. Each of Quanta’s operating units is organized into one of three internal divisions: the Electric Power Division, the Oil and Gas Infrastructure Division or the Fiber Optic Licensing Division. As most of the companies acquired by Quanta provide multiple types of services for multiple types of customers, these divisional designations are based on the predominant type of work performed by each operating unit at the point in time the divisional designation is made. Goodwill is required to be measured for impairment at the reporting unit level, which represents the operating segment level or one level below the operating segment level for which discrete financial information is available. Quanta has determined that its individual operating units represent its reporting units for the purpose of assessing goodwill impairments. | |||||||||||||
Quanta has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step fair value-based impairment test described below. If Quanta believes that, as a result of its qualitative assessment, it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. Quanta can choose to perform the qualitative assessment on none, some or all of its reporting units. Quanta can also bypass the qualitative assessment for any reporting unit in any period and proceed directly to step one of the impairment test, and then resume performing the qualitative assessment in any subsequent period. Qualitative indicators including deterioration in macroeconomic conditions, declining financial performance, or a sustained decrease in share price, among other things, may trigger the need for annual or interim impairment testing of goodwill associated with one or all of the reporting units. | |||||||||||||
Quanta’s goodwill impairment assessment is performed at year-end, or more frequently if events or circumstances arise which indicate that goodwill may be impaired. For instance, a decrease in Quanta’s market capitalization below book value, a significant change in business climate or loss of a significant customer, as well as the qualitative indicators referenced above, may trigger the need for interim impairment testing of goodwill for one or all of its reporting units. The first step of the two-step fair value-based test involves comparing the fair value of each of Quanta’s reporting units with its carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the second step is performed. The second step compares the carrying amount of the reporting unit’s goodwill to the implied fair value of its goodwill. If the implied fair value of goodwill is less than the carrying amount, an impairment loss would be recorded as a reduction to goodwill with a corresponding charge to operating expense. | |||||||||||||
Quanta determines the fair value of its reporting units using a weighted combination of the discounted cash flow, market multiple and market capitalization valuation approaches, with heavier weighting on the discounted cash flow method, as in management’s opinion, this method currently results in the most accurate calculation of a reporting unit’s fair value. Determining the fair value of a reporting unit requires judgment and the use of significant estimates and assumptions. Such estimates and assumptions include revenue growth rates, operating margins, discount rates, weighted average costs of capital and future market conditions, among others. Quanta believes the estimates and assumptions used in its impairment assessments are reasonable and based on available market information, but variations in any of the assumptions could result in materially different calculations of fair value and determinations of whether or not an impairment is indicated. | |||||||||||||
Under the discounted cash flow method, Quanta determines fair value based on the estimated future cash flows of each reporting unit, discounted to present value using risk-adjusted industry discount rates, which reflect the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. Cash flow projections are derived from budgeted amounts and operating forecasts (typically a one-year model) plus an estimate of later period cash flows, all of which are evaluated by management. Subsequent period cash flows are developed for each reporting unit using growth rates that management believes are reasonably likely to occur, along with a terminal value derived from the reporting unit’s earnings before interest, taxes, depreciation and amortization (EBITDA). The EBITDA multiples for each reporting unit are based on trailing twelve-month comparable industry data. | |||||||||||||
Under the market multiple and market capitalization approaches, Quanta determines the estimated fair value of each of its reporting units by applying transaction multiples to each reporting unit’s projected EBITDA and then averaging that estimate with similar historical calculations using either a one, two or three year average. For the market capitalization approach, Quanta adds a reasonable control premium, which is estimated as the premium that would be received in a sale of the reporting unit in an orderly transaction between market participants. | |||||||||||||
The projected cash flows and estimated levels of EBITDA by reporting unit were used to determine fair value under the three approaches discussed herein. The following table presents the significant estimates used by management in determining the fair values of Quanta’s reporting units at December 31, 2014, 2013 and 2012: | |||||||||||||
Operating Units Providing | Operating Unit Providing | ||||||||||||
Predominantly Electric Power and | Fiber Optic Licensing | ||||||||||||
Oil and Gas Infrastructure Services | |||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||
Years of cash flows before terminal value | 5 | 5 | 5 | 15 | 15 | 15 | |||||||
Discount rates | 12% to 14% | 12% to 14% | 12% to 13% | 12% | 12% | 12% | |||||||
EBITDA multiples | 5.0 to 6.0 | 5.0 to 8.0 | 4.5 to 8.0 | 9.5 | 9.5 | 9.5 | |||||||
Weighting of three approaches: | |||||||||||||
Discounted cash flows | 70% | 70% | 70% | 90% | 90% | 90% | |||||||
Market multiple | 15% | 15% | 15% | 5% | 5% | 5% | |||||||
Market capitalization | 15% | 15% | 15% | 5% | 5% | 5% | |||||||
For recently acquired reporting units, a step one impairment test may indicate an implied fair value that is substantially similar to the reporting unit’s carrying value. Such similarities in value are generally an indication that management’s estimates of future cash flows associated with the recently acquired reporting unit remain relatively consistent with the assumptions that were used to derive its initial fair value. | |||||||||||||
During the fourth quarter of 2014, a two-step fair-value based goodwill impairment analysis was performed for each of Quanta’s reporting units, and no reporting units were evaluated solely on a qualitative basis. The analysis indicated that the implied fair value of each of Quanta’s reporting units, other than recently acquired reporting units, was substantially in excess of its carrying value. Following the analysis, management concluded that no impairment was indicated at any reporting unit. As discussed generally above, when evaluating the 2014 step one impairment test results, management considered many factors in determining whether or not an impairment of goodwill for any reporting unit was reasonably likely to occur in future periods, including future market conditions and the economic environment in which Quanta’s reporting units were operating. Additionally, management considered the sensitivity of its fair value estimates to changes in certain valuation assumptions and, after giving consideration to at least a 10% decrease in the fair value of each of Quanta’s reporting units, the results of the assessment at December 31, 2014 did not change. However, circumstances such as market declines, unfavorable economic conditions, the loss of a major customer or other factors could impact the valuation of goodwill in future periods. | |||||||||||||
The goodwill analysis performed for each reporting unit was based on estimates and industry comparables obtained from the electric power, oil and gas and fiber optic licensing industries, and no impairment was indicated. The 15-year discounted cash flow model used for fiber optic licensing is based on the long-term nature of the underlying fiber optic network licensing agreements. | |||||||||||||
Quanta assigned a higher weighting to the discounted cash flow approach in all periods to reflect increased expectations of market value being determined from a “held and used” model. As stated previously, cash flows are derived from budgeted amounts and operating forecasts that have been evaluated by management. In connection with the 2014 assessment, projected annual growth rates by reporting unit varied widely with ranges from 0% to 71% for reporting units in the Electric Power and the Oil and Gas Divisions and 4% to 12% for the reporting unit in the Fiber Optic Licensing Division. | |||||||||||||
Quanta’s intangible assets include customer relationships, backlog, trade names, non-compete agreements, patented rights and developed technology, all subject to amortization, along with other intangible assets not subject to amortization. The value of customer relationships is estimated as of the date a business is acquired based on the value-in-use concept utilizing the income approach, specifically the excess earnings method. The excess earnings analysis consists of discounting to present value the projected cash flows attributable to the customer relationships, with consideration given to customer contract renewals, the importance or lack thereof of existing customer relationships to Quanta’s business plan, income taxes and required rates of return. Quanta values backlog for acquired businesses as of the acquisition date based upon the contractual nature of the backlog within each service line, using the income approach to discount back to present value the cash flows attributable to the backlog. The value of trade names is estimated using the relief-from-royalty method of the income approach. This approach is based on the assumption that in lieu of ownership, a company would be willing to pay a royalty in order to exploit the related benefits of this intangible asset. | |||||||||||||
Quanta amortizes intangible assets based upon the estimated consumption of the economic benefits of each intangible asset, or on a straight-line basis if the pattern of economic benefits consumption cannot otherwise be reliably estimated. Intangible assets subject to amortization are reviewed for impairment and are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For instance, a significant change in business climate or a loss of a significant customer, among other things, may trigger the need for interim impairment testing of intangible assets. An impairment loss would be recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. | |||||||||||||
Investments in Affiliates and Other Entities | Investments in Affiliates and Other Entities | ||||||||||||
In the normal course of business, Quanta enters into various types of investment arrangements, each having unique terms and conditions. These investments may include equity interests held by Quanta in business entities, including general or limited partnerships, contractual joint ventures, or other forms of equity participation. These investments may also include Quanta’s participation in different financing structures such as the extension of loans to project specific entities, the acquisition of convertible notes issued by project specific entities, or other strategic financing arrangements. Quanta determines whether such investments involve a variable interest entity (VIE) based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if Quanta is the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities of a VIE that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE, in either case that could potentially be significant to the VIE. When Quanta is deemed to be the primary beneficiary, the VIE is consolidated and the other party’s equity interest in the VIE is accounted for as a non-controlling interest. In cases where Quanta determines that it has an undivided interest in the assets, liabilities, revenues and profits of an unincorporated VIE (e.g., a general partnership interest), such amounts are consolidated on a basis proportional to Quanta’s ownership interest in the unincorporated entity. | |||||||||||||
Investments in entities of which Quanta is not the primary beneficiary, but over which Quanta has the ability to exercise significant influence, are accounted for using the equity method of accounting. Quanta’s share of net income or losses from unconsolidated equity investments is included in equity in earnings (losses) of unconsolidated affiliates in the consolidated statements of operations when applicable. Equity investments are reviewed for impairment by assessing whether any decline in the fair value of the investment below the carrying value is other than temporary. In making this determination, factors such as the ability to recover the carrying amount of the investment and the inability of the investee to sustain an earnings capacity are evaluated in determining whether a loss in value should be recognized. Any impairment losses would be recognized in other expense. Equity method investments are carried at original cost and are included in other assets, net in the consolidated balance sheet and are adjusted for Quanta’s proportionate share of the investees’ income, losses and distributions. | |||||||||||||
On December 6, 2013, Quanta sold all of its equity ownership interest in Howard Midstream Energy Partners, LLC (HEP) for proceeds of approximately $220.9 million, which resulted in a pre-tax gain of approximately $112.7 million. HEP is engaged in the business of owning, operating and constructing midstream plant and pipeline assets in the oil and gas industry. Quanta held an equity ownership interest of approximately 31% in HEP. | |||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||
Infrastructure Services — Through its Electric Power Infrastructure Services and Oil and Gas Infrastructure Services segments, Quanta designs, installs and maintains networks for customers in the electric power and oil and gas industries. These services may be provided pursuant to master service agreements, repair and maintenance contracts and fixed price and non-fixed price installation contracts. Pricing under these contracts may be competitive unit price, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis), and the final terms and prices of these contracts are frequently negotiated with the customer. Under unit-based contracts, the utilization of an output-based measurement is appropriate for revenue recognition. Under these contracts, Quanta recognizes revenue as units are completed based on pricing established between Quanta and the customer for each unit of delivery, which best reflects the pattern in which the obligation to the customer is fulfilled. Under cost-plus/hourly and time and materials type contracts, Quanta recognizes revenue on an input basis, as labor hours are incurred and services are performed. | |||||||||||||
Revenues from fixed price contracts are recognized using the percentage-of-completion method, measured by the percentage of costs incurred to date to total estimated costs for each contract. These contracts provide for a fixed amount of revenues for the entire project. Such contracts provide that the customer accept completion of progress to date and compensate Quanta for services rendered, which may be measured in terms of units installed, hours expended or some other measure of progress. Contract costs include all direct materials, labor and subcontract costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Much of the material associated with Quanta’s work is owner-furnished and is therefore not included in contract revenues and costs. The cost estimation process is based on professional knowledge and experience of Quanta’s engineers, project managers and financial professionals. Changes in job performance, job conditions and final contract settlements are factors that influence management’s assessment of total contract value and the total estimated costs to complete those contracts and therefore Quanta’s profit recognition. Changes in these factors may result in revisions to costs and income, and their effects are recognized in the period in which the revisions are determined. These factors are routinely evaluated on a project by project basis throughout the project term, and the impact of corresponding revisions in management’s estimates of contract value, contract cost and contract profit are recorded as necessary in the period in which the revisions are determined. Provisions for losses on uncompleted contracts are made in the period in which such losses are determined to be probable and the amount can be reasonably estimated. Quanta’s operating results for the year ended December 31, 2014 and 2013 were impacted by less than 5% as a result of changes in contract estimates related to projects that were in progress at December 31, 2013 and 2012. | |||||||||||||
The current asset “Costs and estimated earnings in excess of billings on uncompleted contracts” represents revenues recognized in excess of amounts billed for fixed price contracts. The current liability “Billings in excess of costs and estimated earnings on uncompleted contracts” represents billings in excess of revenues recognized for fixed price contracts. | |||||||||||||
Quanta may incur costs subject to change orders, whether approved or unapproved by the customer, and/or claims related to certain contracts. Quanta determines the probability that such costs will be recovered based upon evidence such as past practices with the customer, specific discussions or preliminary negotiations with the customer or verbal approvals. Quanta treats items as a cost of contract performance in the period incurred if it is not probable that the costs will be recovered or will recognize revenue if it is probable that the contract price will be adjusted and can be reliably estimated. | |||||||||||||
As of December 31, 2014 and 2013, Quanta had approximately $106.8 million and $75.5 million of change orders and/or claims that had been included as contract price adjustments on certain contracts which were in the process of being negotiated in the normal course of business. | |||||||||||||
As of December 31, 2013 and throughout most of 2014, Quanta also had previously recognized contract price adjustments related to a change order from the Sunrise Powerlink project of approximately $165 million. In October 2013, PAR initiated arbitration proceedings against SDG&E pursuant to a contractually agreed upon dispute resolution process to collect amounts due for this project. In December 2014, Quanta and SDG&E reached an agreement to settle the arbitration under terms providing for a cash payment by SDG&E in the amount of $65 million, representing the final amount to compensate Quanta/PAR for substantially all of the unpaid portion of costs incurred by Quanta/PAR on the project. As a result, during the third and fourth quarters of 2014, Quanta recorded a provision in the aggregate amount of $102.5 million against the recorded value of this asset. See Legal Proceedings—Sunrise Powerlink Arbitration in Note 15 for additional information. | |||||||||||||
These aggregate contract price adjustments represent management’s best estimate of additional contract revenues which have been earned and which management believes are probable of collection. The amounts ultimately realized by Quanta upon final acceptance by its customers could be higher or lower than such estimated amounts. | |||||||||||||
Fiber Optic Licensing — The fiber optic licensing business constructs and licenses the right to use fiber optic telecommunications facilities to its customers pursuant to licensing agreements, typically with terms from five to twenty-five years, inclusive of certain renewal options. Under those agreements, customers are provided the right to use a portion of the capacity of a fiber optic facility, with the facility owned and maintained by Quanta. Revenues, including any initial fees or advance billings, are recognized ratably over the expected length of the agreements, including probable renewal periods. As of December 31, 2014 and 2013, initial fees and advance billings on these licensing agreements not yet recorded in revenue were $56.5 million and $48.8 million and were recognized as deferred revenue, with $48.2 million and $40.2 million considered to be long-term and included in other non-current liabilities. Minimum future licensing revenues expected to be recognized by Quanta pursuant to these agreements at December 31, 2014 were as follows (in thousands): | |||||||||||||
Minimum | |||||||||||||
Future | |||||||||||||
Licensing | |||||||||||||
Revenues | |||||||||||||
Year Ending December 31 — | |||||||||||||
2015 | $ | 90,549 | |||||||||||
2016 | 74,933 | ||||||||||||
2017 | 62,348 | ||||||||||||
2018 | 48,950 | ||||||||||||
2019 | 32,775 | ||||||||||||
Thereafter | 124,739 | ||||||||||||
Fixed non-cancelable minimum licensing revenues | $ | 434,294 | |||||||||||
Income Taxes | Income Taxes | ||||||||||||
Quanta follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the underlying assets or liabilities are recovered or settled. | |||||||||||||
Quanta regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain. The estimation of required valuation allowances includes estimates of future taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Quanta considers projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income differs from these estimates, Quanta may not realize deferred tax assets to the extent estimated. | |||||||||||||
Quanta records reserves for income taxes related to certain tax positions in those instances where Quanta considers it more likely than not that additional taxes may be due in excess of amounts reflected on income tax returns filed. When recording reserves for expected tax consequences of uncertain positions, Quanta assumes that taxing authorities have full knowledge of the position and all relevant facts. Quanta continually reviews exposure to additional tax obligations, and as further information is known or events occur, changes in tax reserves may be recorded. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and are classified in the provision for income taxes. | |||||||||||||
As of December 31, 2014, the total amount of unrecognized tax benefits relating to uncertain tax positions was $51.1 million, an increase from December 31, 2013 of $2.2 million. This increase in unrecognized tax benefits resulted from a $9.2 million increase due to tax positions expected to be taken for 2014 and a $2.4 million increase due to tax positions taken in prior years, partially offset by a $9.4 million decrease due to the expiration of certain statute of limitations periods associated with the 2010 tax year. Quanta is currently under examination by the Internal Revenue Service (IRS) for calendar years 2011 and 2012 and remains open to examination by the IRS for tax years 2013 through 2014 as these statute of limitations periods have not yet expired. Additionally, certain subsidiaries are under examination by various U.S. state, Canadian and other foreign tax authorities for multiple periods. Quanta believes it is reasonably possible that within the next 12 months unrecognized tax benefits may decrease by up to $10.3 million as a result of settlement of these examinations or as a result of the expiration of certain statute of limitations periods. | |||||||||||||
The income tax laws and regulations are voluminous and are often ambiguous. As such, Quanta is required to make many subjective assumptions and judgments regarding its tax positions that could materially affect amounts recognized in its future consolidated balance sheets and statements of operations and comprehensive income. | |||||||||||||
Earnings Per Share | Earnings Per Share | ||||||||||||
Basic earnings per share is computed using the weighted average number of common shares outstanding during the period, and diluted earnings per share is computed using the weighted average number of common shares outstanding during the period adjusted for all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalents would be antidilutive. | |||||||||||||
Self-Insurance | Self-Insurance | ||||||||||||
Quanta is insured for employer’s liability, general liability, auto liability and workers’ compensation claims. Under these programs, the deductibles for general liability and auto liability were $10.0 million per occurrence, the deductible for workers’ compensation was $5.0 million per occurrence, and the deductible for employer’s liability was $1.0 million per occurrence for the 2014-2015 and the 2013-2014 policy years. For the 2012-2013 policy year, deductibles for general liability, auto liability and workers’ compensation were $5.0 million per occurrence, and the deductible for employer’s liability was $1.0 million per occurrence. Quanta is generally self-insured for all claims that do not exceed the amount of the applicable deductible. Quanta also has employee health care benefit plans for most employees not subject to collective bargaining agreements, of which the primary plan is subject to a deductible of $375,000 per claimant per year. | |||||||||||||
Losses under all of these insurance programs are accrued based upon Quanta’s estimate of the ultimate liability for claims reported and an estimate of claims incurred but not reported, with assistance from third-party actuaries. These insurance liabilities are difficult to assess and estimate due to unknown factors, including the severity of an injury, the extent of damage, the determination of Quanta’s liability in proportion to other parties and the number of incidents not reported. The accruals are based upon known facts and historical trends, and management believes such accruals are adequate. | |||||||||||||
Collective Bargaining Agreements | Collective Bargaining Agreements | ||||||||||||
Some of Quanta’s operating units are parties to various collective bargaining agreements with unions that represent certain of their employees. The collective bargaining agreements expire at various times and have typically been renegotiated and renewed on terms similar to those in the expiring agreements. The agreements require the operating units to pay specified wages, provide certain benefits to their union employees and contribute certain amounts to multi-employer pension plans and employee benefit trusts. Quanta’s multi-employer pension plan contribution rates generally are specified in the collective bargaining agreements (usually on an annual basis), and contributions are made to the plans on a “pay-as-you-go” basis based on its union employee payrolls. The location and number of union employees that Quanta employs at any given time and the plans in which they may participate vary depending on the projects Quanta has ongoing at that time and the need for union resources in connection with those projects. Therefore, Quanta is unable to accurately predict the union employee payroll and the amount of the resulting multi-employer pension plan contribution obligation for future periods. | |||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||
Quanta recognizes compensation expense for restricted stock, restricted stock units (RSUs) and performance units to be settled in common stock based on the fair value of the awards granted at the date of grant, net of estimated forfeitures. The fair value of restricted stock awards, RSUs and performance units to be settled in common stock is determined based on the number of shares or RSUs or performance units granted and the closing price of Quanta’s common stock on the date of grant. An estimate of future forfeitures is required in determining the period expense. Quanta uses historical data to estimate the forfeiture rate; however, these estimates are subject to change and may impact the value that will ultimately be realized as compensation expense. The resulting compensation expense from discretionary awards is recognized on a straight-line basis over the requisite service period, which is generally the vesting period, while compensation expense from performance-based awards is recognized using the graded vesting method over the requisite service period. Restricted stock awards, RSUs and performance units to be settled in common stock are subject to forfeiture, restrictions on transfer and certain other conditions until vesting. During the restriction period, holders of restricted stock are entitled to vote and receive dividends on such shares. The cash flows resulting from the tax deductions in excess of the compensation expense recognized for restricted stock, RSUs and performance units to be settled in common stock and stock options (excess tax benefit) are classified as financing cash flows. | |||||||||||||
Compensation expense associated with liability based awards, such as RSUs that are expected to be settled in cash, is recognized based on a remeasurement of the fair value of the award at the end of each reporting period. RSUs to be settled in cash are intended to provide the holders with cash performance incentives that are substantially equivalent to the risks and rewards of equity ownership in Quanta. RSUs to be settled in cash typically vest in equal installments over a two-year or three-year period following the date of grant and are subject to forfeiture under certain conditions, primarily termination of service. Upon vesting of RSUs to be settled in cash, the holders receive for each vested RSU an amount in cash equal to the fair market value on the vesting date of one share of Quanta common stock, as specified in the applicable award agreement. | |||||||||||||
Functional Currency and Translation of Financial Statements | Functional Currency and Translation of Financial Statements | ||||||||||||
The U.S. dollar is the functional currency for the majority of Quanta’s operations, which are primarily located within the United States. The functional currency for Quanta’s foreign operations, which are primarily located in Canada and Australia, is typically the currency of the country in which the foreign operating unit is located. Generally, the currency in which the operating unit transacts the majority of its activities, including billings, financing, payroll and other expenditures, would be considered the functional currency. The treatment of foreign currency translation gains or losses is dependent upon management’s determination of the functional currency of each operating unit, which involves consideration of all relevant economic facts and circumstances affecting the operating unit. In preparing the consolidated financial statements, Quanta translates the financial statements of its foreign operating units from their functional currency into U.S. dollars. Statements of operations, comprehensive income (loss) and cash flows are translated at average monthly rates, while balance sheets are translated at month-end exchange rates. This results in translation gains or losses, which are included as a separate component of equity under the caption “Accumulated other comprehensive income (loss).” Gains and losses arising from transactions which are not denominated in the operating units’ functional currencies are included within other income (expense) in the statements of operations. | |||||||||||||
Derivatives | Derivatives | ||||||||||||
From time to time, Quanta enters into forward currency contracts that qualify as derivatives in order to hedge the risks associated with fluctuations in foreign currency exchange rates related to certain forecasted foreign currency denominated transactions. Quanta does not enter into derivative transactions for speculative purposes; however, for accounting purposes, certain transactions may not meet the criteria for cash flow hedge accounting. For a hedge to qualify for cash flow hedge accounting treatment, a hedge must be documented at the inception of the contract, with the objective and strategy stated, along with an explicit description of the methodology used to assess hedge effectiveness. The dates (or periods) for the expected forecasted events and the nature of the exposure involved (including quantitative measures of the size of the exposure) must also be documented. At the inception of the hedge and on an ongoing basis, the hedge must be deemed to be “highly effective” at minimizing the risk of the identified exposure. Effectiveness measures relate the gains or losses of the derivative to changes in the cash flows associated with the hedged item, and the forecasted transaction must be probable of occurring. | |||||||||||||
For forward contracts that qualify as cash flow hedges, Quanta accounts for the change in fair value of the forward contracts directly in equity as part of accumulated other comprehensive income (loss). Any ineffective portion of cash flow hedges is recognized in earnings in the period in which ineffectiveness occurs. For instance, if a forward contract is discontinued as a cash flow hedge because it is probable that the original forecasted transaction will not occur by the end of the originally specified time period, the related amounts in accumulated other comprehensive income (loss) would be reclassified to other income (expense) in the consolidated statement of operations in the period such determination is made. When a forecasted transaction occurs, the portion of the accumulated gain or loss applicable to the forecasted transaction is reclassified from equity to earnings. Changes in fair value related to transactions that do not meet the criteria for cash flow hedge accounting are recorded in the consolidated statements of operations and are included in other income (expense). | |||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||
Components of comprehensive income include all changes in equity during a period except those resulting from changes in Quanta’s capital related accounts. Quanta records other comprehensive income (loss), net of tax, for foreign currency translation adjustments related to its foreign operations and for other revenues, expenses, gains and losses that are included in comprehensive income but excluded from net income. | |||||||||||||
Litigation Costs and Reserves | Litigation Costs and Reserves | ||||||||||||
Quanta records reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Costs incurred for litigation are expensed as incurred. Further details are presented in Note 15. | |||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||
The carrying values of cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term nature of these instruments. The carrying value of variable rate debt also approximates fair value. For disclosure purposes, qualifying assets and liabilities are categorized into three broad levels based on the priority of the inputs used to determine their fair values. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). All of Quanta’s cash equivalents were categorized as Level 1 assets at December 31, 2014 and 2013, as all values were based on unadjusted quoted prices for identical assets in an active market that Quanta has the ability to access. | |||||||||||||
In connection with Quanta’s acquisitions, identifiable intangible assets acquired include goodwill, backlog, customer relationships, trade names, covenants not-to-compete, patented rights and developed technology. Quanta utilizes the fair value premise as the primary basis for its valuation procedures, which is a market-based approach to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Quanta periodically engages the services of an independent valuation firm when a new business is acquired to assist management with this valuation process, including assistance with the selection of appropriate valuation methodologies and the development of market-based valuation assumptions. Based on these considerations, management utilizes various valuation methods, including an income approach, a market approach and a cost approach, to determine the fair value of intangible assets acquired based on the appropriateness of each method in relation to the type of asset being valued. The assumptions used in these valuation methods are analyzed and compared, where possible, to available market data, such as industry-based weighted average costs of capital and discount rates, trade name royalty rates, public company valuation multiples and recent market acquisition multiples. The level of inputs used for these fair value measurements is the lowest level (Level 3). Quanta believes that these valuation methods appropriately represent the methods that would be used by other market participants in determining fair value. | |||||||||||||
Quanta uses fair value measurements on a routine basis in its assessment of assets classified as goodwill, other intangible assets and long-lived assets held and used. In accordance with its annual impairment test during the quarter ended December 31, 2014, the carrying amounts of such assets, including goodwill, were compared to their fair values. The inputs used for fair value measurements for goodwill, other intangible assets and long-lived assets held and used are the lowest level (Level 3) inputs, and Quanta uses the assistance of third party specialists to develop valuation assumptions. | |||||||||||||
Quanta also uses fair value measurements in connection with the valuation of its investments in private company equity interests and financing instruments. These valuations require significant management judgment due to the absence of quoted market prices, the inherent lack of liquidity and the long-term nature of such assets. Typically, the initial costs of these investments are considered to represent fair market value, as such amounts are negotiated between willing market participants. On a quarterly basis, Quanta performs an evaluation of its investments to determine if an other-than-temporary decline in the value of each investment has occurred and whether the recorded amount of each investment will be realizable. If an other-than-temporary decline in the value of an investment occurs, a fair value analysis would be performed to determine the degree to which the investment was impaired and a corresponding charge to earnings would be recorded during the period. These types of fair market value assessments are similar to other nonrecurring fair value measures used by Quanta, which include the use of significant judgment and available relevant market data. Such market data may include observations of the valuation of comparable companies, risk adjusted discount rates and an evaluation of the expected performance of the underlying portfolio asset, including historical and projected levels of profitability or cash flows. In addition, a variety of additional factors may be reviewed by management, including, but not limited to, contemporaneous financing and sales transactions with third parties, changes in market outlook and the third-party financing environment. | |||||||||||||
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements | ||||||||||||
On January 1, 2014, Quanta adopted an update that provides guidance on the balance sheet presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists as of the reporting date. The update is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this standard did not have a material effect on Quanta’s consolidated financial statements. | |||||||||||||
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted | ||||||||||||
In April 2014, the FASB issued an update that changes the requirement for reporting discontinued operations. A disposal of a component of an entity or a group of components of an entity will be required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the entity or group of components of an entity meets the criteria to be classified as held for sale or when it is disposed of by sale or other than by sale. The update also requires additional disclosures about discontinued operations, a disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements, and an entity’s significant continuing involvement with a discontinued operation. The update is effective prospectively for fiscal years beginning on or after December 15, 2014, including interim periods within that year. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in previously issued financial statements. Quanta adopted this guidance effective January 1, 2015. This guidance will impact the disclosure and presentation of how Quanta reports any future disposals of components or groups of components of its business. | |||||||||||||
In May 2014, the FASB issued an update that supersedes most current revenue recognition guidance as well as some cost recognition guidance. The update requires that an entity recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires new qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, information about contract balances and performance obligations, and assets recognized from costs incurred to obtain or fulfill a contract. For public entities, the update is effective for fiscal years beginning on or after December 15, 2016, including interim periods within that year. The guidance can be applied on a full retrospective or modified retrospective basis whereby the entity records a cumulative effect of initially applying this update at the date of initial application, and early adoption is not permitted. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements and is planning to adopt this guidance effective January 1, 2017. | |||||||||||||
In August 2014, the FASB issued guidance to address the diversity in practice in determining when there is substantial doubt about an entity’s ability to continue as a going concern and when and how an entity must disclose certain relevant conditions and events. This update requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern for a period of one year after the date that the financial statements are issued (or available to be issued). If such conditions or events exist, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern for a period of one year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations and management’s plans that are intended to mitigate those conditions or events. The guidance is effective for annual and interim periods ending after December 15, 2016. This guidance will impact the disclosure and presentation of how Quanta reports any substantial doubt about its ability to continue as a going concern, if such substantial doubt were to exist. Quanta will adopt this guidance effective January 1, 2017. | |||||||||||||
In February 2015, the FASB issued an update which amends existing consolidation guidance, including amending the guidance related to determining whether an entity is a variable interest entity. The update is effective for interim and annual periods beginning after December 15, 2015, although early adoption is permitted. The guidance may be applied using a modified retrospective approach whereby the entity records a cumulative effect of adoption at the beginning of the fiscal year of initial application. A reporting entity may also apply the amendments on a full retrospective basis. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements. | |||||||||||||
Repurchase of Common Stock | During the fourth quarter of 2013, Quanta’s board of directors approved a stock repurchase program authorizing Quanta to purchase, from time to time through December 31, 2016, up to $500.0 million of its outstanding common stock. During the year ended December 31, 2013, Quanta did not purchase any of its common stock under this program. During the year ended December 31, 2014, Quanta purchased approximately 3.0 million shares of its common stock under this program at a cost of $93.5 million. The shares and the related cost to acquire them have been accounted for as an adjustment to the balance of treasury stock. | ||||||||||||
Segment Reporting | Quanta presents its operations under three reportable segments: (1) Electric Power Infrastructure Services, (2) Oil and Gas Infrastructure Services and (3) Fiber Optic Licensing and Other. This structure is generally based on the broad end-user markets for Quanta’s services. See Note 1 for additional information regarding Quanta’s reportable segments. | ||||||||||||
Quanta’s segment results are derived from the types of services provided across its operating units in each of the end user markets described above. Quanta’s entrepreneurial business model allows each of its operating units to serve the same or similar customers and to provide a range of services across end user markets. Quanta’s operating units are organized into one of three internal divisions, namely, the Electric Power Division, the Oil and Gas Infrastructure Division and the Fiber Optic Licensing Division. These internal divisions are closely aligned with the reportable segments described above based on their operating units’ predominant type of work. | |||||||||||||
Reportable segment information, including revenues and operating income by type of work, is gathered from each operating unit for the purpose of evaluating segment performance in support of Quanta’s market strategies. These classifications of Quanta’s operating unit revenues by type of work for segment reporting purposes can at times require judgment on the part of management. Quanta’s operating units may perform joint infrastructure service projects for customers in multiple industries, deliver multiple types of network services under a single customer contract or provide service across industries, for example, joint trenching projects to install distribution lines for electric power and natural gas customers. | |||||||||||||
In addition, Quanta’s integrated operations and common administrative support at each of its operating units require that certain allocations, including allocations of shared and indirect costs, such as facility costs, indirect operating expenses, including depreciation, and general and administrative costs, be made to determine operating segment profitability. Corporate costs, such as payroll and benefits, employee travel expenses, facility costs, professional fees, acquisition costs and amortization related to certain intangible assets are not allocated. | |||||||||||||
Separate measures of Quanta’s assets and cash flows by reportable segment, including capital expenditures, are not produced or utilized by management to evaluate segment performance. Quanta’s fixed assets, which are held at the operating unit level, include operating machinery, equipment and vehicles, as well as office equipment, buildings and leasehold improvements, are used on an interchangeable basis across its reportable segments. As such, for reporting purposes, total depreciation expense is allocated each quarter among Quanta’s reportable segments based on the ratio of each reportable segment’s revenue contribution to consolidated revenues. | |||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Significant Estimates Used by Management in Determining Fair Values of Company's Reporting Units | The following table presents the significant estimates used by management in determining the fair values of Quanta’s reporting units at December 31, 2014, 2013 and 2012: | ||||||||||||
Operating Units Providing | Operating Unit Providing | ||||||||||||
Predominantly Electric Power and | Fiber Optic Licensing | ||||||||||||
Oil and Gas Infrastructure Services | |||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||
Years of cash flows before terminal value | 5 | 5 | 5 | 15 | 15 | 15 | |||||||
Discount rates | 12% to 14% | 12% to 14% | 12% to 13% | 12% | 12% | 12% | |||||||
EBITDA multiples | 5.0 to 6.0 | 5.0 to 8.0 | 4.5 to 8.0 | 9.5 | 9.5 | 9.5 | |||||||
Weighting of three approaches: | |||||||||||||
Discounted cash flows | 70% | 70% | 70% | 90% | 90% | 90% | |||||||
Market multiple | 15% | 15% | 15% | 5% | 5% | 5% | |||||||
Market capitalization | 15% | 15% | 15% | 5% | 5% | 5% | |||||||
Minimum Future Licensing Revenue | Minimum future licensing revenues expected to be recognized by Quanta pursuant to these agreements at December 31, 2014 were as follows (in thousands): | ||||||||||||
Minimum | |||||||||||||
Future | |||||||||||||
Licensing | |||||||||||||
Revenues | |||||||||||||
Year Ending December 31 — | |||||||||||||
2015 | $ | 90,549 | |||||||||||
2016 | 74,933 | ||||||||||||
2017 | 62,348 | ||||||||||||
2018 | 48,950 | ||||||||||||
2019 | 32,775 | ||||||||||||
Thereafter | 124,739 | ||||||||||||
Fixed non-cancelable minimum licensing revenues | $ | 434,294 | |||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Summary of Financial Information for Discontinued Operations | Summarized financial information for discontinued operations is shown below (in thousands): | ||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues | $ | — | $ | — | $ | 493,233 | |||||||
Income (loss) from discontinued operations before taxes | $ | (1,014 | ) | $ | — | $ | 46,576 | ||||||
Gain on disposal of discontinued operations before taxes | — | — | 17,962 | ||||||||||
(Provision) benefit for income taxes | 387 | — | (47,603 | ) | |||||||||
Income (loss) from discontinued operations, net of taxes | $ | (627 | ) | $ | — | $ | 16,935 |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
Business Acquisition Purchase Price Allocation Assets Acquired and Liabilities Assumed | This allocation requires a significant use of estimates and is based on information that was available to management at the time these consolidated financial statements were prepared (in thousands). | ||||||||||||
2014 | 2013 | ||||||||||||
Consideration: | |||||||||||||
Value of Quanta common stock and exchangeable shares issued | $ | 134,538 | $ | 88,895 | |||||||||
Cash paid or payable | 284,312 | 341,064 | |||||||||||
Fair value of total consideration transferred | $ | 418,850 | $ | 429,959 | |||||||||
Current assets | $ | 172,298 | $ | 193,895 | |||||||||
Property and equipment | 159,186 | 60,988 | |||||||||||
Other assets | 3,500 | 1,009 | |||||||||||
Identifiable intangible assets | 96,302 | 55,124 | |||||||||||
Current liabilities | (144,252 | ) | (127,430 | ) | |||||||||
Deferred tax liabilities, net | (37,743 | ) | (4,083 | ) | |||||||||
Other long-term liabilities | (4,926 | ) | (5,350 | ) | |||||||||
Total identifiable net assets | 244,365 | 174,153 | |||||||||||
Goodwill | 174,485 | 255,806 | |||||||||||
$ | 418,850 | $ | 429,959 | ||||||||||
Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization | The following table summarizes the estimated fair values of identifiable intangible assets and the related weighted average amortization periods by type as of the respective acquisition dates for the 2014 acquisitions (in thousands, except for weighted average amortization periods, which are in years). | ||||||||||||
Estimated | Weighted Average | ||||||||||||
Fair Value at | Amortization Period at | ||||||||||||
Acquisition Date | Acquisition Date | ||||||||||||
Customer relationships | $ | 65,243 | 12.2 | ||||||||||
Backlog | 17,059 | 1.1 | |||||||||||
Trade names | 10,436 | 9.7 | |||||||||||
Non-compete agreements | 3,160 | 5 | |||||||||||
Patented rights and developed technology | 404 | 10 | |||||||||||
Total intangible assets subject to amortization acquired in 2014 acquisitions | $ | 96,302 | 9.7 | ||||||||||
Unaudited Supplemental Pro Forma Results of Operations | Future results may vary significantly from the results reflected in the following pro forma financial information because of future events and transactions, as well as other factors (in thousands, except per share amounts): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues | $ | 8,391,061 | $ | 7,740,575 | $ | 6,477,648 | |||||||
Gross profit | $ | 1,267,778 | $ | 1,254,211 | $ | 1,060,370 | |||||||
Selling, general and administrative expenses | $ | 737,488 | $ | 579,818 | $ | 478,184 | |||||||
Amortization of intangible assets | $ | 43,658 | $ | 52,405 | $ | 52,339 | |||||||
Net income from continuing operations | $ | 322,358 | $ | 481,263 | $ | 344,925 | |||||||
Net income from continuing operations attributable to common stock | $ | 303,990 | $ | 461,875 | $ | 328,898 | |||||||
Earnings per share from continuing operations attributable to common stock — basic and diluted | $ | 1.37 | $ | 2.08 | $ | 1.52 |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Summary of Changes in Quanta's Goodwill | A summary of changes in Quanta’s goodwill is as follows (in thousands): | ||||||||||||||||||||||||||||
Electric | Oil and Gas | Fiber Optic | Total | ||||||||||||||||||||||||||
Power | Infrastructure | Licensing | |||||||||||||||||||||||||||
Division | Division | Division | |||||||||||||||||||||||||||
Goodwill balance at December 31, 2012 | $ | 1,065,152 | $ | 137,703 | $ | 334,790 | $ | 1,537,645 | |||||||||||||||||||||
Goodwill acquired during 2013 | 112,549 | 143,257 | — | 255,806 | |||||||||||||||||||||||||
Foreign currency translation adjustment related to goodwill | (9,617 | ) | (3,117 | ) | — | (12,734 | ) | ||||||||||||||||||||||
Goodwill balance at December 31, 2013 | 1,168,084 | 277,843 | 334,790 | 1,780,717 | |||||||||||||||||||||||||
Goodwill acquired during 2014 | 71,517 | 102,968 | — | 174,485 | |||||||||||||||||||||||||
Foreign currency translation adjustment related to goodwill | (16,377 | ) | (7,340 | ) | — | (23,717 | ) | ||||||||||||||||||||||
Goodwill balance at December 31, 2014 | $ | 1,223,224 | $ | 373,471 | $ | 334,790 | $ | 1,931,485 | |||||||||||||||||||||
Other Intangible Assets | Quanta’s intangible assets subject to amortization and the remaining weighted average amortization periods related to such assets were as follows (in thousands except for weighted average amortization periods, which are in years): | ||||||||||||||||||||||||||||
As of | As of | As of | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | |||||||||||||||||||||||||||
Intangible | Accumulated | Intangible | Intangible | Accumulated | Intangible | Remaining Weighted | |||||||||||||||||||||||
Assets | Amortization | Assets, Net | Assets | Amortization | Assets, Net | Average | |||||||||||||||||||||||
Amortization Period | |||||||||||||||||||||||||||||
in Years | |||||||||||||||||||||||||||||
Customer relationships | $ | 257,380 | $ | (74,289 | ) | $ | 183,091 | $ | 199,224 | $ | (59,417 | ) | $ | 139,807 | 10.2 | ||||||||||||||
Backlog | 151,404 | (138,460 | ) | 12,944 | 136,831 | (127,233 | ) | 9,598 | 1.3 | ||||||||||||||||||||
Trade names | 49,664 | (6,278 | ) | 43,386 | 40,342 | (4,228 | ) | 36,114 | 20 | ||||||||||||||||||||
Non-compete agreements | 31,430 | (25,136 | ) | 6,294 | 28,895 | (22,860 | ) | 6,035 | 3.4 | ||||||||||||||||||||
Patented rights and developed technology | 22,073 | (11,695 | ) | 10,378 | 21,440 | (9,617 | ) | 11,823 | 4.6 | ||||||||||||||||||||
Total intangible assets subject to amortization | $ | 511,951 | $ | (255,858 | ) | $ | 256,093 | $ | 426,732 | $ | (223,355 | ) | $ | 203,377 | 11 | ||||||||||||||
Estimated Future Aggregate Amortization Expense of Intangible Assets | The estimated future aggregate amortization expense of intangible assets as of December 31, 2014 is set forth below (in thousands): | ||||||||||||||||||||||||||||
For the Fiscal Year Ending December 31, | |||||||||||||||||||||||||||||
2015 | $ | 34,823 | |||||||||||||||||||||||||||
2016 | 28,430 | ||||||||||||||||||||||||||||
2017 | 24,553 | ||||||||||||||||||||||||||||
2018 | 24,277 | ||||||||||||||||||||||||||||
2019 | 23,508 | ||||||||||||||||||||||||||||
Thereafter | 120,502 | ||||||||||||||||||||||||||||
Total | $ | 256,093 | |||||||||||||||||||||||||||
Per_Share_Information_Tables
Per Share Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Basic and Diluted Earnings Per Share | The amounts used to compute the basic and diluted earnings per share for the years ended December 31, 2014, 2013 and 2012 are illustrated below (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Amounts Attributable to Common Stock: | |||||||||||||
Net income from continuing operations | $ | 297,341 | $ | 401,921 | $ | 289,694 | |||||||
Net income (loss) from discontinued operations | (627 | ) | — | 16,935 | |||||||||
Net income attributable to common stock | $ | 296,714 | $ | 401,921 | $ | 306,629 | |||||||
Weighted Average Shares: | |||||||||||||
Weighted average shares outstanding for basic earnings per share | 219,668 | 214,929 | 212,777 | ||||||||||
Effect of dilutive stock options | 22 | 49 | 58 | ||||||||||
Weighted average shares outstanding for diluted earnings per share | 219,690 | 214,978 | 212,835 | ||||||||||
Detail_of_Certain_Balance_Shee1
Detail of Certain Balance Sheet Accounts (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Current and Long-Term Allowance for Doubtful Accounts | Activity in Quanta’s current and long-term allowance for doubtful accounts consisted of the following (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of year | $ | 5,215 | $ | 5,447 | |||||||||
Charged to bad debt expense and provision for long-term contract receivable | 103,871 | 3,236 | |||||||||||
Deductions for uncollectible receivables written off, net of recoveries | (102,912 | ) | (3,468 | ) | |||||||||
Balance at end of year | $ | 6,174 | $ | 5,215 | |||||||||
Contracts in Progress | Contracts in progress were as follows (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Costs incurred on contracts in progress | $ | 6,603,351 | $ | 6,152,507 | |||||||||
Estimated earnings, net of estimated losses | 1,111,657 | 943,090 | |||||||||||
7,715,008 | 7,095,597 | ||||||||||||
Less — Billings to date | (7,675,674 | ) | (7,121,225 | ) | |||||||||
$ | 39,334 | $ | (25,628 | ) | |||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 290,447 | $ | 213,478 | |||||||||
Less — Billings in excess of costs and estimated earnings on uncompleted contracts | (251,113 | ) | (239,106 | ) | |||||||||
$ | 39,334 | $ | (25,628 | ) | |||||||||
Property and Equipment | Property and equipment consisted of the following (in thousands): | ||||||||||||
Estimated Useful | December 31, | ||||||||||||
Lives in Years | 2014 | 2013 | |||||||||||
Land | N/A | $ | 40,657 | $ | 30,743 | ||||||||
Buildings and leasehold improvements | 30-May | 95,058 | 77,939 | ||||||||||
Operating equipment and vehicles | 25-May | 1,460,121 | 1,199,807 | ||||||||||
Fiber optic and related assets | 20-May | 431,690 | 377,551 | ||||||||||
Office equipment, furniture and fixtures and information technology systems | 15-Mar | 122,914 | 107,477 | ||||||||||
Construction work in progress | N/A | 69,233 | 44,030 | ||||||||||
2,219,673 | 1,837,547 | ||||||||||||
Less — Accumulated depreciation and amortization | (739,545 | ) | (631,939 | ) | |||||||||
Property and equipment, net | $ | 1,480,128 | $ | 1,205,608 | |||||||||
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Accounts payable, trade | $ | 487,790 | $ | 412,601 | |||||||||
Accrued compensation and related expenses | 166,331 | 163,000 | |||||||||||
Accrued insurance, current portion | 49,309 | 44,608 | |||||||||||
Current deferred taxes | 31,014 | 16,424 | |||||||||||
Deferred revenues, current portion | 21,309 | 22,764 | |||||||||||
Income and franchise taxes payable | 20,946 | 74,499 | |||||||||||
Other accrued expenses | 100,637 | 68,284 | |||||||||||
$ | 877,336 | $ | 802,180 | ||||||||||
Debt_Obligations_Tables
Debt Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-term Debt Obligations | Quanta’s long-term debt obligations consisted of the following (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Borrowings under credit facility | $ | 68,793 | $ | — | |||||
Other long-term debt, interest rates ranging from 1.4% to 4.3% | 6,370 | — | |||||||
Capital leases, interest rates ranging from 6.0% to 7.3% | 1,146 | 2,234 | |||||||
Total long-term debt obligations | 76,309 | 2,234 | |||||||
Less — Current maturities of long-term debt | 3,820 | 1,181 | |||||||
Total long-term debt obligations, net of current maturities | $ | 72,489 | $ | 1,053 | |||||
Current Maturities of Long-Term Debt and Short-Term Borrowings | Quanta’s current maturities of long-term debt and short-term borrowings consisted of the following (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Short-term borrowings | $ | 5,056 | $ | — | |||||
Current maturities of long-term debt | 3,820 | 1,181 | |||||||
Current maturities of long-term debt and short-term borrowings | $ | 8,876 | $ | 1,181 | |||||
Information on Borrowings under Current and Prior Credit Facility and Applicable Interest Rates | Information on borrowings under Quanta’s current and prior credit facility and the applicable interest rates during the years ended December 31, 2014 and 2013 is as follows (dollars in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Maximum amount outstanding during the period | $ | 130,856 | $ | 161,920 | |||||
Average daily amount outstanding under the credit facility | $ | 29,814 | $ | 14,482 | |||||
Weighted-average interest rate | 2.71 | % | 2.12 | % |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of Income Before Income Taxes | The components of income from continuing operations before income taxes were as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income from continuing operations before income taxes: | |||||||||||||
Domestic | $ | 309,875 | $ | 523,745 | $ | 390,734 | |||||||
Foreign | 163,242 | 115,504 | 73,846 | ||||||||||
Total | $ | 473,117 | $ | 639,249 | $ | 464,580 | |||||||
Provision for Income Taxes | The components of the provision for income taxes for continuing operations were as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 74,224 | $ | 173,930 | $ | 109,272 | |||||||
State | 9,542 | 23,287 | 12,397 | ||||||||||
Foreign | 39,978 | 37,193 | 14,657 | ||||||||||
Total current tax provision | 123,744 | 234,410 | 136,326 | ||||||||||
Deferred: | |||||||||||||
Federal | 20,799 | (15,457 | ) | 16,134 | |||||||||
State | 3,698 | (451 | ) | 1,627 | |||||||||
Foreign | 9,167 | (562 | ) | 4,772 | |||||||||
Total deferred tax provision (benefit) | 33,664 | (16,470 | ) | 22,533 | |||||||||
Total provision for income taxes from continuing operations | $ | 157,408 | $ | 217,940 | $ | 158,859 | |||||||
Effective Income Tax Rate Reconciliation | The actual income tax provision differed from the income tax provision computed by applying the U.S. federal statutory corporate rate to income from continuing operations before provision for income taxes as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Provision at the statutory rate | $ | 165,591 | $ | 223,737 | $ | 162,603 | |||||||
Increases (decreases) resulting from — | |||||||||||||
State taxes | 9,948 | 14,788 | 10,980 | ||||||||||
Foreign taxes | (13,059 | ) | (9,994 | ) | (5,841 | ) | |||||||
Contingency reserves, net | (696 | ) | (3,422 | ) | (3,880 | ) | |||||||
Production activity deduction | (6,033 | ) | (10,247 | ) | (7,081 | ) | |||||||
Employee per diems, meals and entertainment | 9,906 | 7,960 | 6,441 | ||||||||||
Taxes on unincorporated joint ventures | (6,429 | ) | (6,786 | ) | (5,609 | ) | |||||||
Other | (1,820 | ) | 1,904 | 1,246 | |||||||||
Total provision for income taxes from continuing operations | $ | 157,408 | $ | 217,940 | $ | 158,859 | |||||||
Deferred Tax Assets and Liabilities | Deferred income taxes result from temporary differences in the recognition of income and expenses for financial reporting purposes and tax purposes. The tax effects of these temporary differences, representing deferred tax assets and liabilities, result principally from the following (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred income tax liabilities: | |||||||||||||
Property and equipment | $ | (255,084 | ) | $ | (218,739 | ) | |||||||
Goodwill | (72,030 | ) | (58,643 | ) | |||||||||
Other intangibles | (53,599 | ) | (42,604 | ) | |||||||||
Book/tax accounting method difference | (63,989 | ) | (50,764 | ) | |||||||||
Total deferred income tax liabilities | (444,702 | ) | (370,750 | ) | |||||||||
Deferred income tax assets: | |||||||||||||
Accruals and reserves | 22,885 | 22,642 | |||||||||||
Accrued insurance | 64,773 | 59,640 | |||||||||||
Deferred revenue | 16,575 | 15,336 | |||||||||||
Stock and incentive compensation and pension withdrawal liabilities | 53,610 | 57,674 | |||||||||||
Net operating loss carryforwards | 21,511 | 20,828 | |||||||||||
Other | 10,678 | 10,857 | |||||||||||
Subtotal | 190,032 | 186,977 | |||||||||||
Valuation allowance | (15,186 | ) | (15,644 | ) | |||||||||
Total deferred income tax assets | 174,846 | 171,333 | |||||||||||
Total net deferred income tax liabilities | $ | (269,856 | ) | $ | (199,417 | ) | |||||||
Net Deferred Income Tax Assets and Liabilities | The net deferred income tax assets and liabilities were comprised of the following (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred income taxes: | |||||||||||||
Assets | $ | 58,272 | $ | 61,263 | |||||||||
Liabilities | (31,014 | ) | (16,424 | ) | |||||||||
27,258 | 44,839 | ||||||||||||
Non-current deferred income taxes: | |||||||||||||
Assets | 3,402 | — | |||||||||||
Liabilities | (300,516 | ) | (244,256 | ) | |||||||||
(297,114 | ) | (244,256 | ) | ||||||||||
Total net deferred income tax liabilities | $ | (269,856 | ) | $ | (199,417 | ) | |||||||
Reconciliation of Unrecognized Tax Benefit | A reconciliation of unrecognized tax benefit balances is as follows (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 48,838 | $ | 51,244 | $ | 47,379 | |||||||
Additions based on tax positions related to the current year | 9,179 | 9,073 | 15,411 | ||||||||||
Additions for tax positions of prior years | 2,438 | — | 1,607 | ||||||||||
Reductions for tax positions of prior years | — | — | (293 | ) | |||||||||
Reductions for audit settlements | — | — | (895 | ) | |||||||||
Reductions resulting from a lapse of the applicable statute of limitations periods | (9,376 | ) | (11,479 | ) | (11,965 | ) | |||||||
Balance at end of year | $ | 51,079 | $ | 48,838 | $ | 51,244 | |||||||
Balances of Unrecognized Tax Benefits | The balances of unrecognized tax benefits, the amount of related interest and penalties and what Quanta believes to be the range of reasonably possible changes in the next 12 months are as follows (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits | $ | 51,079 | $ | 48,838 | $ | 51,244 | |||||||
Portion that, if recognized, would reduce tax expense and effective tax rate | 43,363 | 40,562 | 43,910 | ||||||||||
Accrued interest on unrecognized tax benefits | 6,360 | 5,837 | 6,088 | ||||||||||
Accrued penalties on unrecognized tax benefits | 697 | 99 | 127 | ||||||||||
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | $ | 0 to $10,331 | $0 to $6,722 | $ | 0 to $11,479 | ||||||||
Portion that, if recognized, would reduce tax expense and effective tax rate | $0 to $8,593 | $0 to $4,984 | $0 to $9,645 | ||||||||||
EquityBased_Compensation_Table
Equity-Based Compensation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Summary of Restricted Stock and RSU to be Settled in Common Stock Activity | A summary of the activity for restricted stock and RSUs to be settled in common stock for the year ended December 31, 2014 is as follows (shares in thousands): | ||||||||
Shares | Weighted | ||||||||
Average | |||||||||
Grant Date | |||||||||
Fair Value | |||||||||
(Per share) | |||||||||
Unvested at January 1, 2014 | 2,358 | $ | 25.96 | ||||||
Granted | 1,432 | $ | 35.09 | ||||||
Vested | (1,138 | ) | $ | 34.93 | |||||
Forfeited | (111 | ) | $ | 29.58 | |||||
Unvested at December 31, 2014 | 2,541 | $ | 31.25 | ||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Summary of Plan Information Relating to Participation in Multi-Employer Pension Plans | Information has been presented separately for individually significant plans and in the aggregate for all other plans. | ||||||||||||||||||||||||
Fund | Employee | Subject to | Sur- | Expiration Date | |||||||||||||||||||||
Identification | Financial | of Collective | |||||||||||||||||||||||
Number/ | PPA Zone | Improve- | Contributions (in thousands) | charge | Bargaining | ||||||||||||||||||||
Pension Plan | Status | ment/ | Agreement | ||||||||||||||||||||||
Number | Reha- | Imposed | |||||||||||||||||||||||
bilitation | |||||||||||||||||||||||||
2014 | 2013 | Plan | 2014 | 2013 | 2012 | ||||||||||||||||||||
National Electrical Benefit Fund | 53-0181657-001 | Green | Green | No | $ | 20,758 | $ | 17,268 | $ | 18,509 | No | Varies through August 2018 | |||||||||||||
Central Pension Fund of the IUOE & Participating Employers | 36-6052390-001 | Green | Green | No | 7,847 | 4,259 | 6,843 | No | Varies through June 2017 | ||||||||||||||||
Pipeline Industry Pension Fund | 73-6146433-001 | Green | Green | No | 6,280 | 4,511 | 7,434 | No | Varies through June 2017 | ||||||||||||||||
Laborers National Pension Fund | 75-1280827-001 | Green | Green | No | 4,227 | 4,681 | 1,906 | No | Apr-15 | ||||||||||||||||
Eighth District Electrical Pension Fund | 84-6100393-001 | Green | Green | No | 2,192 | 1,790 | 4,415 | No | Varies through February 2018 | ||||||||||||||||
Joint Pension Local Union 164 IBEW | 22-6031199-001 | Yellow | Yellow | Yes | 1,816 | 222 | 515 | No | May-17 | ||||||||||||||||
Laborers Pension Trust Fund for Northern California | 94-6277608-001 | Yellow | Yellow | Yes | 1,357 | 987 | 21 | Yes | Jun-19 | ||||||||||||||||
Michigan Upper Peninsula Intrl Brotherhood of Elec Workers Pension Plan | 36-3020872-001 | Yellow | Yellow | Yes | 1,307 | 299 | 518 | No | May-17 | ||||||||||||||||
Operating Engineers Local 324 Pension Fund | 38-1900637-001 | Red | Red | Yes | 1,086 | 818 | 135 | Yes | Varies through April 2018 | ||||||||||||||||
OE Pension Trust Fund | 94-6090764-001 | Red | Yellow | Yes | 991 | 902 | 768 | Yes | Jul-16 | ||||||||||||||||
Alaska Teamster — Employer Pension Plan | 92-6003463-024 | Red | Red | Yes | 516 | 241 | — | Yes | Oct-17 | ||||||||||||||||
Central States, Southeast, and Southwest Areas Pension Plan | 36-6044243-001 | Red | Red | Yes | — | — | 22 | Yes | -1 | ||||||||||||||||
All other plans | 22,827 | 19,076 | 22,486 | ||||||||||||||||||||||
Total | $ | 71,204 | $ | 55,054 | $ | 63,572 | |||||||||||||||||||
-1 | Quanta believes that it effected a complete withdrawal from the Central States, Southeast, and Southwest Areas Pension Plan as of December 31, 2012. See Legal Proceedings — Collective Bargaining Agreements for additional information. | ||||||||||||||||||||||||
Quanta’s contributions to the following plans were five percent or more of the total contributions to these plans for the periods indicated based on the Forms 5500 for these plans for the years ended December 31, 2013 and 2012. Forms 5500 were not yet available for these plans for the year ended December 31, 2014. | |||||||||||||||||||||||||
Pension Fund | Plan Years in which | ||||||||||||||||||||||||
Quanta | |||||||||||||||||||||||||
Contributions Were | |||||||||||||||||||||||||
Five Percent or More | |||||||||||||||||||||||||
of Total Plan | |||||||||||||||||||||||||
Contributions | |||||||||||||||||||||||||
Pipeline Industry Pension Fund | 2013 and 2012 | ||||||||||||||||||||||||
Michigan Upper Peninsula Intrl Brotherhood of Elec Workers Pension Plan | 2013 and 2012 | ||||||||||||||||||||||||
Eighth District Electrical Pension Fund | 2013 and 2012 | ||||||||||||||||||||||||
Laborers National Pension Fund | 2013 | ||||||||||||||||||||||||
Joint Pension Local Union 164 IBEW | 2013 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Outstanding Capital Commitments Associated with Investments in Unconsolidated Affiliates | As of December 31, 2014, Quanta had outstanding capital commitments associated with investments in unconsolidated affiliates related to this project as follows (in thousands) : | ||||
Capital Commitments | |||||
Year Ending December 31: | |||||
2015 | $ | 5,164 | |||
2016 | 9,168 | ||||
2017(1) | 36,891 | ||||
2018 | — | ||||
2019 | 27,242 | ||||
Thereafter | — | ||||
Total capital commitments associated with investments in unconsolidated affiliated related to an EPC electrical transmission project | $ | 78,465 | |||
-1 | A return of capital from unconsolidated affiliates of approximately $48.7 million is anticipated in August 2017. | ||||
Minimum Lease Payments | The following schedule shows the future minimum lease payments under these leases as of December 31, 2014 (in thousands): | ||||
Operating | |||||
Leases | |||||
Year Ending December 31: | |||||
2015 | $ | 79,441 | |||
2016 | 49,455 | ||||
2017 | 39,462 | ||||
2018 | 29,043 | ||||
2019 | 14,716 | ||||
Thereafter | 23,470 | ||||
Total minimum lease payments | $ | 235,587 | |||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Summarized Financial Information | Summarized financial information for Quanta’s reportable segments is presented in the following table (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues: | |||||||||||||
Electric Power Infrastructure | $ | 5,238,627 | $ | 4,480,647 | $ | 4,206,509 | |||||||
Oil and Gas Infrastructure | 2,444,558 | 1,869,615 | 1,534,713 | ||||||||||
Fiber Optic Licensing and Other | 168,065 | 172,580 | 179,047 | ||||||||||
Consolidated | $ | 7,851,250 | $ | 6,522,842 | $ | 5,920,269 | |||||||
Operating income (loss): | |||||||||||||
Electric Power Infrastructure | $ | 458,332 | $ | 521,855 | $ | 520,834 | |||||||
Oil and Gas Infrastructure | 162,797 | 138,543 | 55,410 | ||||||||||
Fiber Optic Licensing and Other | 54,386 | 55,415 | 61,299 | ||||||||||
Corporate and non-allocated costs | (199,940 | ) | (188,885 | ) | (172,421 | ) | |||||||
Consolidated | $ | 475,575 | $ | 526,928 | $ | 465,122 | |||||||
Depreciation: | |||||||||||||
Electric Power Infrastructure | $ | 74,723 | $ | 63,407 | $ | 55,205 | |||||||
Oil and Gas Infrastructure | 57,414 | 47,050 | 43,285 | ||||||||||
Fiber Optic Licensing and Other | 18,495 | 16,786 | 15,173 | ||||||||||
Corporate and non-allocated costs | 7,478 | 6,867 | 6,640 | ||||||||||
Consolidated | $ | 158,110 | $ | 134,110 | $ | 120,303 | |||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Consolidated Operating Results by Quarter | The table below sets forth the unaudited consolidated operating results by quarter for the years ended December 31, 2014 and 2013 (in thousands, except per share information). | ||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014:00:00 | |||||||||||||||||
Revenues | $ | 1,762,574 | $ | 1,864,550 | $ | 2,171,144 | $ | 2,052,982 | |||||||||
Gross profit | 272,071 | 281,448 | 352,971 | 327,030 | |||||||||||||
Net income | 58,648 | 85,444 | 100,015 | 70,975 | |||||||||||||
Net income attributable to common stock | 54,408 | 81,082 | 94,648 | 66,576 | |||||||||||||
Net income from continuing operations attributable to common stock | 54,408 | 81,082 | 94,648 | 67,203 | |||||||||||||
Earnings per share from continuing operations attributable to common stock — basic and diluted | $ | 0.25 | $ | 0.37 | $ | 0.43 | $ | 0.3 | |||||||||
2013:00:00 | |||||||||||||||||
Revenues | $ | 1,585,710 | $ | 1,474,377 | $ | 1,645,132 | $ | 1,817,623 | |||||||||
Gross profit | 238,273 | 241,284 | 273,053 | 302,843 | |||||||||||||
Net income | 76,857 | 74,726 | 98,409 | 171,317 | |||||||||||||
Net income attributable to common stock | 72,081 | 70,237 | 92,906 | 166,697 | |||||||||||||
Net income from continuing operations attributable to common stock | 72,081 | 70,237 | 92,906 | 166,697 | |||||||||||||
Earnings per share from continuing operations attributable to common stock — basic and diluted | $ | 0.34 | $ | 0.33 | $ | 0.43 | $ | 0.77 |
Business_and_Organization_Addi
Business and Organization - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Entity | Segment | Entity | Entity | |
Entity | ||||
Organization And Description Of Business [Line Items] | ||||
Number of reportable segments | 3 | |||
Fiber Optic Licensing Terms, Minimum in years | 5 years | 5 years | ||
Fiber Optic Licensing Terms, Maximum in years | 25 years | 25 years | ||
Number of business acquisitions | 4 | 9 | 6 | 4 |
Proceeds from sale of subsidiary | $265 | |||
Electric Power Infrastructure Services Business [Member] | Canada [Member] | ||||
Organization And Description Of Business [Line Items] | ||||
Number of business acquisitions | 1 | 4 | ||
Electric Power Infrastructure Services Business [Member] | Australia [Member] | ||||
Organization And Description Of Business [Line Items] | ||||
Number of business acquisitions | 1 | |||
Electric Power Infrastructure Services Business [Member] | United States [Member] | ||||
Organization And Description Of Business [Line Items] | ||||
Number of business acquisitions | 2 | 1 | ||
Electric Power Infrastructure Services Business [Member] | Us Canada Australia [Member] | ||||
Organization And Description Of Business [Line Items] | ||||
Number of business acquisitions | 3 | |||
Oil and Gas Infrastructure Services Business [Member] | Canada [Member] | ||||
Organization And Description Of Business [Line Items] | ||||
Number of business acquisitions | 2 | |||
Oil and Gas Infrastructure Services Business [Member] | United States [Member] | ||||
Organization And Description Of Business [Line Items] | ||||
Number of business acquisitions | 1 | 1 | ||
Oil and Gas Infrastructure Services Business [Member] | Us Canada Australia [Member] | ||||
Organization And Description Of Business [Line Items] | ||||
Number of business acquisitions | 3 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 06, 2013 | Dec. 31, 2011 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cash and cash equivalents | $190,515,000 | $488,777,000 | $190,515,000 | $488,777,000 | $394,701,000 | $315,349,000 | ||
Cash equivalents | 107,600,000 | 247,800,000 | 107,600,000 | 247,800,000 | ||||
Number of days after accounts receivable are treated as delinquent | 30 days | 30 days | ||||||
Number of days related to outstanding accounts receivable for analysis of the allowance for doubtful accounts | At least 90 days | |||||||
Allowances for doubtful accounts on current receivable | 6,174,000 | 5,215,000 | 6,174,000 | 5,215,000 | ||||
Revenue associated with change order | 165,000,000 | |||||||
Provision for long-term contract receivable | 49,900,000 | 52,500,000 | 102,460,000 | |||||
Current retainage balances | 307,300,000 | 194,500,000 | 307,300,000 | 194,500,000 | ||||
Non-current retainage balances | 19,600,000 | 50,800,000 | 19,600,000 | 50,800,000 | ||||
Unbilled receivables | 165,500,000 | 179,200,000 | 165,500,000 | 179,200,000 | ||||
Depreciation expense related to property and equipment | 158,110,000 | 134,110,000 | 120,303,000 | |||||
Construction work-in-progress | 69,233,000 | 44,030,000 | 69,233,000 | 44,030,000 | ||||
Accrued capital expenditures | 11,800,000 | 600,000 | ||||||
Debt issuance costs related to amendment | 3,244,000 | |||||||
Debt issuance cost write off | 200,000 | |||||||
Capitalized debt issuance costs | 7,600,000 | 7,600,000 | 7,600,000 | 7,600,000 | ||||
Accumulated amortization of debt issuance costs | 3,500,000 | 2,400,000 | 3,500,000 | 2,400,000 | ||||
Amortization expense related to capitalized debt issuance costs | 1,094,000 | 1,081,000 | 904,000 | |||||
Decrease in fair value of reporting units considered for impairment calculation | 10.00% | 10.00% | ||||||
Gain on sale of equity ownership interest, Pre tax | 112,700,000 | |||||||
Percent change in contract estimates impact on operating results is less than this percentage | 5.00% | |||||||
Change orders and/or claims | 106,800,000 | 75,500,000 | 106,800,000 | 75,500,000 | ||||
Fiber Optic Licensing Terms, Minimum in years | 5 years | 5 years | ||||||
Fiber Optic Licensing Terms, Maximum in years | 25 years | 25 years | ||||||
Fiber optic deferred revenue | 56,500,000 | 48,800,000 | 56,500,000 | 48,800,000 | ||||
Fiber optic non-current deferred revenue | 48,200,000 | 40,200,000 | 48,200,000 | 40,200,000 | ||||
Total amount of unrecognized tax benefits relating to uncertain tax positions | 51,079,000 | 48,838,000 | 51,079,000 | 48,838,000 | 51,244,000 | 47,379,000 | ||
Amount of unrecognized tax benefits change from year-end relating to uncertain tax positions | 2,200,000 | |||||||
Unrecognized tax benefits increases resulting from current period tax positions | 9,179,000 | 9,073,000 | 15,411,000 | |||||
Unrecognized tax benefits increases resulting from prior period tax positions | 2,438,000 | 1,607,000 | ||||||
Unrecognized tax benefits decreases resulting from prior period tax positions | 9,376,000 | 11,479,000 | 11,965,000 | |||||
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months upper bound | 10,331,000 | 6,722,000 | 10,331,000 | 6,722,000 | 11,479,000 | |||
Employer's liability claims subject to deductible per occurrence | 1,000,000 | 1,000,000 | ||||||
General liability insurance claims deductible | 10,000,000 | 10,000,000 | ||||||
Worker's compensation claims per occurrence | 5,000,000 | 5,000,000 | ||||||
Auto liability insurance claims deductible | 10,000,000 | 10,000,000 | ||||||
Employee health care benefit plans subject to deductible per claimant | 375,000 | |||||||
Restricted Stock Units to be Settled in Cash [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Number of common stock shares that may be received by RSU holder | 1 | |||||||
Investments in Joint Ventures [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cash and cash equivalents | 19,100,000 | 18,900,000 | 19,100,000 | 18,900,000 | ||||
Howard Midstream Energy Partners, LLC. [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Proceeds from sale of equity ownership interest | 220,900,000 | |||||||
Gain on sale of equity ownership interest, Pre tax | 112,700,000 | |||||||
Equity ownership percentage held | 31.00% | |||||||
Fiber Optic Licensing Division [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Construction work-in-progress | 30,600,000 | 32,400,000 | 30,600,000 | 32,400,000 | ||||
Sunrise Powerlink Project [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Provision for long-term contract receivable | 49,900,000 | 52,500,000 | 102,500,000 | |||||
Contract receivable | 65,000,000 | 65,000,000 | ||||||
Long term receivable | 165,000,000 | 165,000,000 | ||||||
Domestic Bank Accounts [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cash and cash equivalents | 127,200,000 | 236,700,000 | 127,200,000 | 236,700,000 | ||||
Foreign Bank Accounts [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cash and cash equivalents | $63,300,000 | $252,100,000 | $63,300,000 | $252,100,000 | ||||
Minimum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Equity method investment ownership | 20.00% | 20.00% | ||||||
Minimum [Member] | Restricted Stock Units to be Settled in Cash [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Vesting period for restricted stock units to be settled in cash | 2 years | |||||||
Minimum [Member] | Fiber Optic Licensing Division [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Annual growth rates by reporting units | 4.00% | |||||||
Minimum [Member] | Electric Power and Oil and Gas Services Divisions [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Annual growth rates by reporting units | 0.00% | |||||||
Maximum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Equity method investment ownership | 50.00% | 50.00% | ||||||
Maximum [Member] | Restricted Stock Units to be Settled in Cash [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Vesting period for restricted stock units to be settled in cash | 3 years | |||||||
Maximum [Member] | Fiber Optic Licensing Division [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Annual growth rates by reporting units | 12.00% | |||||||
Maximum [Member] | Electric Power and Oil and Gas Services Divisions [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Annual growth rates by reporting units | 71.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Significant Estimates Used by Management in Determining Fair Values of Company's Reporting Units (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Electric Power and Oil and Gas Services Divisions [Member] | |||
Goodwill Impairment Testing Assumptions [Line Items] | |||
Years of cash flows before terminal value | 5 years | 5 years | 5 years |
Weighting of three approaches: | |||
Discounted cash flows | 70.00% | 70.00% | 70.00% |
Market multiple | 15.00% | 15.00% | 15.00% |
Market capitalization | 15.00% | 15.00% | 15.00% |
Electric Power and Oil and Gas Services Divisions [Member] | Minimum [Member] | |||
Goodwill Impairment Testing Assumptions [Line Items] | |||
Discount rates | 12.00% | 12.00% | 12.00% |
EBITDA multiples | 5 | 5 | 4.5 |
Electric Power and Oil and Gas Services Divisions [Member] | Maximum [Member] | |||
Goodwill Impairment Testing Assumptions [Line Items] | |||
Discount rates | 14.00% | 14.00% | 13.00% |
EBITDA multiples | 6 | 8 | 8 |
Fiber Optic Licensing Division [Member] | |||
Goodwill Impairment Testing Assumptions [Line Items] | |||
Years of cash flows before terminal value | 15 years | 15 years | 15 years |
Discount rates | 12.00% | 12.00% | 12.00% |
EBITDA multiples | 9.5 | 9.5 | 9.5 |
Weighting of three approaches: | |||
Discounted cash flows | 90.00% | 90.00% | 90.00% |
Market multiple | 5.00% | 5.00% | 5.00% |
Market capitalization | 5.00% | 5.00% | 5.00% |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Minimum Future Licensing Revenue (Detail) (Fiber Optic Licensing and Other [Member], Minimum [Member], Scenario Forecast [Member], USD $) | 12 Months Ended | 84 Months Ended | 144 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2026 | Dec. 31, 2025 |
Fiber Optic Licensing and Other [Member] | Minimum [Member] | Scenario Forecast [Member] | |||||||
License And Collaboration Agreements [Line Items] | |||||||
Fixed non-cancelable minimum licensing revenues | $32,775 | $48,950 | $62,348 | $74,933 | $90,549 | $124,739 | $434,294 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2012 | Dec. 03, 2012 | Dec. 31, 2012 | |
Discontinued Operations [Line Items] | ||||
Cash sale of Quanta's telecommunication subsidiaries | $265,000,000 | |||
Pre tax gain in discontinued operations | 17,962,000 | |||
Legal fees | 1,000,000 | |||
Telecommunications [Member] | ||||
Discontinued Operations [Line Items] | ||||
Cash sale of Quanta's telecommunication subsidiaries | 265,000,000 | |||
Pre tax gain in discontinued operations | 17,962,000 | |||
Tax amount from gain loss of disposal of discontinued operations | -32,200,000 | |||
Loss on sale, Net of tax | -14,200,000 | |||
Incremental expense related to accelerated vesting | $3,700,000 |
Discontinued_Operations_Summar
Discontinued Operations - Summary Of Financial Information For Discontinued Operations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Revenues | $493,233 | |
Income (loss) from discontinued operations before taxes | -1,014 | 46,576 |
Gain on disposal of discontinued operations before taxes | 17,962 | |
(Provision) benefit for income taxes | 387 | -47,603 |
Income (loss) from discontinued operations, net of taxes | ($627) | $16,935 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Entity | Entity | Entity | Entity | |
Business Acquisition [Line Items] | ||||
Number of business acquisitions | 4 | 9 | 6 | 4 |
Cash paid for acquisitions | $284,300,000 | $341,100,000 | ||
Number of shares granted for acquired companies | 686,382 | 3,547,482 | 1,927,113 | |
Value of equity interests transferred | 134,500,000 | 88,900,000 | 37,300,000 | |
Goodwill acquired | 174,485,000 | 255,806,000 | ||
Cash paid for acquisitions | 57,500,000 | |||
Payment of cash to repay acquiree debt | 11,000,000 | |||
Fair value of accounts receivable acquired | 117,000,000 | 83,900,000 | ||
Goodwill expected to be deductible for income tax | 30,100,000 | 213,600,000 | ||
Income (Loss) from continuing operations before income taxes, extraordinary items, noncontrolling interest | 473,117,000 | 639,249,000 | 464,580,000 | |
Electric Power Infrastructure Services Business [Member] | Canada [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of business acquisitions | 4 | |||
Electric Power Infrastructure Services Business [Member] | Australia [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of business acquisitions | 1 | |||
Electric Power Infrastructure Services Business [Member] | United States [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of business acquisitions | 1 | |||
Oil and Gas Infrastructure Services Business [Member] | Canada [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of business acquisitions | 2 | |||
Oil and Gas Infrastructure Services Business [Member] | California [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of business acquisitions | 1 | |||
Third and Fourth Quarter 2014 [Member] | ||||
Business Acquisition [Line Items] | ||||
Net tangible assets acquired | 106,900,000 | |||
Goodwill acquired | 116,100,000 | |||
Other intangible assets, acquired | 73,900,000 | |||
Contributed by Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenues | 314,100,000 | 251,300,000 | 125,700,000 | |
Income (Loss) from continuing operations before income taxes, extraordinary items, noncontrolling interest | 3,400,000 | 18,200,000 | 6,200,000 | |
Acquisition costs | 11,600,000 | |||
Exchangeable Shares [Member] | Canadian Subsidiaries [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of shares granted for acquired companies | 3,825,971 | |||
Electric Power Infrastructure Services Business [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill acquired | 71,517,000 | 112,549,000 | ||
Electric Power Infrastructure Services Business [Member] | Canada [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of business acquisitions | 1 | 4 | ||
Electric Power Infrastructure Services Business [Member] | Australia [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of business acquisitions | 1 | |||
Electric Power Infrastructure Services Business [Member] | United States [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of business acquisitions | 2 | 1 | ||
Oil and Gas Infrastructure Division [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill acquired | $102,968,000 | $143,257,000 | ||
Series G Preferred Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of shares granted for acquired companies | 1 | |||
Series G Preferred Stock [Member] | Exchangeable Shares [Member] | Canadian Subsidiaries [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of shares granted for acquired companies | 899,858 |
Acquisition_Business_Acquisiti
Acquisition - Business Acquisition Purchase Price Allocation Assets Acquired and Liabilities Assumed (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||
Value of Quanta common stock and exchangeable shares issued | $134,500 | $88,900 | $37,300 |
Cash paid | 284,300 | 341,100 | |
Goodwill | 1,931,485 | 1,780,717 | 1,537,645 |
All Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Value of Quanta common stock and exchangeable shares issued | 134,538 | 88,895 | |
Cash paid | 284,312 | 341,064 | |
Fair value of total consideration transferred | 418,850 | 429,959 | |
Current assets | 172,298 | 193,895 | |
Property and equipment | 159,186 | 60,988 | |
Other assets | 3,500 | 1,009 | |
Identifiable intangible assets | 96,302 | 55,124 | |
Current liabilities | -144,252 | -127,430 | |
Deferred tax liabilities, net | -37,743 | -4,083 | |
Other long-term liabilities | -4,926 | -5,350 | |
Total identifiable net assets | 244,365 | 174,153 | |
Goodwill | 174,485 | 255,806 | |
Fair value of total consideration transferred | $418,850 | $429,959 |
Acquisition_Estimated_Fair_Val
Acquisition - Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization (Detail) (Acquisitions [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value at Acquisition Date | $96,302 |
Weighted Average Amortization Period at Acquisition Date | 9 years 8 months 12 days |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value at Acquisition Date | 65,243 |
Weighted Average Amortization Period at Acquisition Date | 12 years 2 months 12 days |
Backlog [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value at Acquisition Date | 17,059 |
Weighted Average Amortization Period at Acquisition Date | 1 year 1 month 6 days |
Trade Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value at Acquisition Date | 10,436 |
Weighted Average Amortization Period at Acquisition Date | 9 years 8 months 12 days |
Non-compete Agreements [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value at Acquisition Date | 3,160 |
Weighted Average Amortization Period at Acquisition Date | 5 years |
Patented Rights and Developed Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value at Acquisition Date | $404 |
Weighted Average Amortization Period at Acquisition Date | 10 years |
Acquisitions_Unaudited_Supplem
Acquisitions - Unaudited Supplemental Proforma Results of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combinations [Abstract] | |||
Revenues | $8,391,061 | $7,740,575 | $6,477,648 |
Gross profit | 1,267,778 | 1,254,211 | 1,060,370 |
Selling, general and administrative expenses | 737,488 | 579,818 | 478,184 |
Amortization of intangible assets | 43,658 | 52,405 | 52,339 |
Net income from continuing operations | 322,358 | 481,263 | 344,925 |
Net income from continuing operations attributable to common stock | $303,990 | $461,875 | $328,898 |
Earnings per share from continuing operations attributable to common stock - basic and diluted | $1.37 | $2.08 | $1.52 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Summary of Changes in Quanta's Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Goodwill, beginning balance | $1,780,717 | $1,537,645 |
Goodwill acquired | 174,485 | 255,806 |
Foreign currency translation adjustment related to goodwill | -23,717 | -12,734 |
Goodwill, ending balance | 1,931,485 | 1,780,717 |
Electric Power Division [Member] | ||
Goodwill [Line Items] | ||
Goodwill, beginning balance | 1,168,084 | 1,065,152 |
Goodwill acquired | 71,517 | 112,549 |
Foreign currency translation adjustment related to goodwill | -16,377 | -9,617 |
Goodwill, ending balance | 1,223,224 | 1,168,084 |
Oil and Gas Infrastructure Division [Member] | ||
Goodwill [Line Items] | ||
Goodwill, beginning balance | 277,843 | 137,703 |
Goodwill acquired | 102,968 | 143,257 |
Foreign currency translation adjustment related to goodwill | -7,340 | -3,117 |
Goodwill, ending balance | 373,471 | 277,843 |
Fiber Optic Licensing Division [Member] | ||
Goodwill [Line Items] | ||
Goodwill, beginning balance | 334,790 | 334,790 |
Goodwill acquired | ||
Foreign currency translation adjustment related to goodwill | ||
Goodwill, ending balance | $334,790 | $334,790 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | $511,951 | $426,732 |
Accumulated Amortization | -255,858 | -223,355 |
Intangible Assets, Net | 256,093 | 203,377 |
Remaining Weighted Average Amortization Period in Years | 11 years | |
Customer Relationships [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | 257,380 | 199,224 |
Accumulated Amortization | -74,289 | -59,417 |
Intangible Assets, Net | 183,091 | 139,807 |
Remaining Weighted Average Amortization Period in Years | 10 years 2 months 12 days | |
Backlog [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | 151,404 | 136,831 |
Accumulated Amortization | -138,460 | -127,233 |
Intangible Assets, Net | 12,944 | 9,598 |
Remaining Weighted Average Amortization Period in Years | 1 year 3 months 18 days | |
Trade Names [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | 49,664 | 40,342 |
Accumulated Amortization | -6,278 | -4,228 |
Intangible Assets, Net | 43,386 | 36,114 |
Remaining Weighted Average Amortization Period in Years | 20 years | |
Non-compete Agreements [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | 31,430 | 28,895 |
Accumulated Amortization | -25,136 | -22,860 |
Intangible Assets, Net | 6,294 | 6,035 |
Remaining Weighted Average Amortization Period in Years | 3 years 4 months 24 days | |
Patented Rights and Developed Technology [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | 22,073 | 21,440 |
Accumulated Amortization | -11,695 | -9,617 |
Intangible Assets, Net | $10,378 | $11,823 |
Remaining Weighted Average Amortization Period in Years | 4 years 7 months 6 days |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Intangible Liability Disclosure [Abstract] | |||
Other intangible assets not subject to amortization | $4,500,000 | $4,500,000 | |
Amortization of intangible assets | $35,907,000 | $27,515,000 | $37,691,000 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - Estimated Future Aggregate Amortization Expense of Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $34,823 | |
2016 | 28,430 | |
2017 | 24,553 | |
2018 | 24,277 | |
2019 | 23,508 | |
Thereafter | 120,502 | |
Intangible Assets, Net | $256,093 | $203,377 |
Per_Share_Information_Basic_an
Per Share Information - Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amounts Attributable to Common Stock: | |||||||||||
Net income from continuing operations | $67,203 | $94,648 | $81,082 | $54,408 | $166,697 | $92,906 | $70,237 | $72,081 | $297,341 | $401,921 | $289,694 |
Net income (loss) from discontinued operations | -627 | 16,935 | |||||||||
Net income attributable to common stock | $66,576 | $94,648 | $81,082 | $54,408 | $166,697 | $92,906 | $70,237 | $72,081 | $296,714 | $401,921 | $306,629 |
Weighted Average Shares: | |||||||||||
Weighted average shares outstanding for basic earnings per share | 219,668 | 214,929 | 212,777 | ||||||||
Effect of dilutive stock options | 22 | 49 | 58 | ||||||||
Weighted average shares outstanding for diluted earnings per share | 219,690 | 214,978 | 212,835 |
Detail_of_Certain_Balance_Shee2
Detail of Certain Balance Sheet Accounts - Current and Long-Term Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Balance Sheet Related Disclosures [Abstract] | ||
Balance at beginning of year | $5,215 | $5,447 |
Charged to bad debt expense and provision for long-term contract receivable | 103,871 | 3,236 |
Deductions for uncollectible receivables written off, net of recoveries | -102,912 | -3,468 |
Balance at end of year | $6,174 | $5,215 |
Detail_of_Certain_Balance_Shee3
Detail of Certain Balance Sheet Accounts - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Provision for long-term contract receivable | $49,900 | $52,500 | $102,460 |
Sunrise Powerlink Project [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Provision for long-term contract receivable | $49,900 | $52,500 | $102,500 |
Detail_of_Certain_Balance_Shee4
Detail of Certain Balance Sheet Accounts - Contracts in Progress (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Costs incurred on contracts in progress | $6,603,351 | $6,152,507 |
Estimated earnings, net of estimated losses | 1,111,657 | 943,090 |
Cost and estimated earnings, total | 7,715,008 | 7,095,597 |
Less - Billings to date | -7,675,674 | -7,121,225 |
Cost and estimated earnings, Net | 39,334 | -25,628 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 290,447 | 213,478 |
Less - Billings in excess of costs and estimated earnings on uncompleted contracts | -251,113 | -239,106 |
Cost and estimated earnings, Net | $39,334 | ($25,628) |
Detail_of_Certain_Balance_Shee5
Detail of Certain Balance Sheet Accounts - Property and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Land | 40,657 | $30,743 |
Buildings and leasehold improvements | 95,058 | 77,939 |
Operating equipment and vehicles | 1,460,121 | 1,199,807 |
Fiber optic and related assets | 431,690 | 377,551 |
Office equipment, furniture and fixtures and information technology systems | 122,914 | 107,477 |
Construction work in progress | 69,233 | 44,030 |
Property and equipment, Gross | 2,219,673 | 1,837,547 |
Less - Accumulated depreciation and amortization | -739,545 | -631,939 |
Property and equipment, net | 1,480,128 | $1,205,608 |
Minimum [Member] | Buildings and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment of Estimated Useful Lives in Years | 5 years | |
Minimum [Member] | Operating Equipment and Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment of Estimated Useful Lives in Years | 5 years | |
Minimum [Member] | Fiber Optic and Related Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment of Estimated Useful Lives in Years | 5 years | |
Minimum [Member] | Office Equipment, Furniture and Fixtures and Information Technology Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment of Estimated Useful Lives in Years | 3 years | |
Maximum [Member] | Buildings and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment of Estimated Useful Lives in Years | 30 years | |
Maximum [Member] | Operating Equipment and Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment of Estimated Useful Lives in Years | 25 years | |
Maximum [Member] | Fiber Optic and Related Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment of Estimated Useful Lives in Years | 20 years | |
Maximum [Member] | Office Equipment, Furniture and Fixtures and Information Technology Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment of Estimated Useful Lives in Years | 15 years |
Detail_of_Certain_Balance_Shee6
Detail of Certain Balance Sheet Accounts - Accounts Payable and Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Accounts payable, trade | $487,790 | $412,601 |
Accrued compensation and related expenses | 166,331 | 163,000 |
Accrued insurance, current portion | 49,309 | 44,608 |
Current deferred taxes | 31,014 | 16,424 |
Deferred revenues, current portion | 21,309 | 22,764 |
Income and franchise taxes payable | 20,946 | 74,499 |
Other accrued expenses | 100,637 | 68,284 |
Accounts payable and accrued expenses, Total | $877,336 | $802,180 |
Debt_Obligations_Longterm_Debt
Debt Obligations - Long-term Debt Obligations (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Borrowings under credit facility | $68,793 | |
Other long-term debt, interest rates ranging from 1.4% to 4.3% | 6,370 | |
Capital leases, interest rates ranging from 6.0% to 7.3% | 1,146 | 2,234 |
Total long-term debt obligations | 76,309 | 2,234 |
Total long-term debt obligations | 76,309 | 2,234 |
Less - Current maturities of long-term debt | 3,820 | 1,181 |
Total long-term debt obligations, net of current maturities | $72,489 | $1,053 |
Debt_Obligations_Longterm_Debt1
Debt Obligations - Long-term Debt Obligations (Parenthetical) (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Minimum [Member] | Other Long Term Debt [Member] | ||
Debt Obligations [Line Items] | ||
Capital leases and Other long-term debt interest rates | 1.40% | 1.40% |
Minimum [Member] | Capital Leases [Member] | ||
Debt Obligations [Line Items] | ||
Capital leases and Other long-term debt interest rates | 6.00% | 6.00% |
Maximum [Member] | Other Long Term Debt [Member] | ||
Debt Obligations [Line Items] | ||
Capital leases and Other long-term debt interest rates | 4.30% | 4.30% |
Maximum [Member] | Capital Leases [Member] | ||
Debt Obligations [Line Items] | ||
Capital leases and Other long-term debt interest rates | 7.30% | 7.30% |
Debt_Obligations_Current_Matur
Debt Obligations - Current Maturities of Long-Term Debt and Short-Term Borrowings (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short-term Debt [Abstract] | ||
Short-term borrowings | $5,056 | |
Current maturities of long-term debt | 3,820 | 1,181 |
Current maturities of long-term debt and short-term borrowings | $8,876 | $1,181 |
Debt_Obligations_Additional_In
Debt Obligations - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended |
Dec. 31, 2014 | Oct. 30, 2013 | |
Line of Credit Facility [Line Items] | ||
Letters of credit and bank guarantees under the credit facility | $336,700,000 | |
Amount borrowed under the credit facility | 68,793,000 | |
Credit facility available for revolving loans or issuing new letters of credit | 919,500,000 | |
U S Dollar [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit and bank guarantees under the credit facility | 225,100,000 | |
Canadian Dollars [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount borrowed under the credit facility | 68,793,000 | |
Canada and Australia Dollar [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit and bank guarantees under the credit facility | 111,600,000 | |
Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Reduction in Quanta's maximum funded debt and maximum senior debt by all cash and cash equivalents in excess of amount | 25,000,000 | |
Percentage of capital stock of direct foreign subsidiaries required to secure credit agreement | 65.00% | |
Amount of availability under the credit agreement and/or cash and cash equivalents on hand that must be present to allow for cash payments of dividends and stock repurchases | 100,000,000 | |
Cross default provisions with debt instruments exceeding this amount | 75,000,000 | |
First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Senior secured revolving credit facility | 700,000,000 | |
Reduction in Quanta's maximum funded debt and maximum senior debt by all cash and cash equivalents in excess of amount | 25,000,000 | |
Prior and After April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Senior secured revolving credit facility | 1,325,000,000 | |
Maturity date of senior secured revolving credit facility | 30-Oct-18 | |
Option to increase revolving commitments under the credit agreement | 300,000,000 | |
Prior to April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitment fee | 0.20% | |
Minimum [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitment fee | 0.20% | |
Minimum [Member] | Effective April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitment fee | 0.20% | |
Maximum [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitment fee | 0.45% | |
Maximum [Member] | Effective April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitment fee | 0.40% | |
Standby Letters of Credit [Member] | Prior to April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.25% | |
Standby Letters of Credit [Member] | Minimum [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.25% | |
Standby Letters of Credit [Member] | Minimum [Member] | Effective April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.13% | |
Standby Letters of Credit [Member] | Maximum [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 2.50% | |
Standby Letters of Credit [Member] | Maximum [Member] | Effective April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 2.13% | |
Performance Letters of Credit [Member] | Prior to April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 0.75% | |
Performance Letters of Credit [Member] | Minimum [Member] | Effective April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 0.68% | |
Performance Letters of Credit [Member] | Maximum [Member] | Effective April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.28% | |
Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only [Member] | Prior to April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.25% | |
Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only [Member] | Minimum [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.25% | |
Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only [Member] | Minimum [Member] | Effective April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.13% | |
Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only [Member] | Maximum [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 2.50% | |
Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only [Member] | Maximum [Member] | Effective April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 2.13% | |
Excess of Base Rate Domestic Borrowings Only [Member] | Prior to April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 0.25% | |
Excess of Base Rate Domestic Borrowings Only [Member] | Minimum [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 0.25% | |
Excess of Base Rate Domestic Borrowings Only [Member] | Minimum [Member] | Effective April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 0.13% | |
Excess of Base Rate Domestic Borrowings Only [Member] | Maximum [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.50% | |
Excess of Base Rate Domestic Borrowings Only [Member] | Maximum [Member] | Effective April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.13% | |
Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings [Member] | Prior to April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.25% | |
Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings [Member] | Minimum [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.25% | |
Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings [Member] | Minimum [Member] | Effective April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.13% | |
Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings [Member] | Maximum [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 2.50% | |
Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings [Member] | Maximum [Member] | Effective April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 2.13% | |
Excess of Federal Funds Rate [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 0.50% | |
Excess of Federal Funds Rate [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 0.50% | |
Excess of Euro Currency Rate [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.00% | |
Excess of Euro Currency Rate [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.00% | |
Swing Line Loans [Member] | Prior and After April 1, 2014 [Member] | Second Amendment [Member] | U S Dollar [Member] | ||
Line of Credit Facility [Line Items] | ||
Senior secured revolving credit facility | 50,000,000 | |
Swing Line Loans [Member] | Prior and After April 1, 2014 [Member] | Second Amendment [Member] | Canadian Dollars [Member] | ||
Line of Credit Facility [Line Items] | ||
Senior secured revolving credit facility | 30,000,000 | |
Swing Line Loans [Member] | Prior and After April 1, 2014 [Member] | Second Amendment [Member] | Australian Dollars [Member] | ||
Line of Credit Facility [Line Items] | ||
Senior secured revolving credit facility | 20,000,000 | |
Revolving Loans and Letter of Credit in Alternative Currencies [Member] | Prior and After April 1, 2014 [Member] | Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Senior secured revolving credit facility | $400,000,000 | |
Performance Letters of Credit [Member] | Minimum [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 0.75% | |
Performance Letters of Credit [Member] | Maximum [Member] | First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument Basis Spread On Variable Rate | 1.50% |
Debt_Obligations_Information_o
Debt Obligations - Information on Borrowings under Current and Prior Credit Facility and Applicable Interest Rates (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Abstract] | ||
Maximum amount outstanding during the period | $130,856 | $161,920 |
Average daily amount outstanding under the credit facility | $29,814 | $14,482 |
Weighted-average interest rate | 2.71% | 2.12% |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income from continuing operations before income taxes: | |||
Domestic | $309,875 | $523,745 | $390,734 |
Foreign | 163,242 | 115,504 | 73,846 |
Income from continuing operations before income taxes | $473,117 | $639,249 | $464,580 |
Income_Taxes_Provision_for_Inc
Income Taxes - Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $74,224 | $173,930 | $109,272 |
State | 9,542 | 23,287 | 12,397 |
Foreign | 39,978 | 37,193 | 14,657 |
Total current tax provision | 123,744 | 234,410 | 136,326 |
Deferred: | |||
Federal | 20,799 | -15,457 | 16,134 |
State | 3,698 | -451 | 1,627 |
Foreign | 9,167 | -562 | 4,772 |
Total deferred tax provision (benefit) | 33,664 | -16,470 | 22,533 |
Total provision for income taxes from continuing operations | $157,408 | $217,940 | $158,859 |
Income_Taxes_Effective_Income_
Income Taxes - Effective Income Tax Rate Reconciliation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Provision at the statutory rate | $165,591 | $223,737 | $162,603 |
Increases (decreases) resulting from - | |||
State taxes | 9,948 | 14,788 | 10,980 |
Foreign taxes | -13,059 | -9,994 | -5,841 |
Contingency reserves, net | -696 | -3,422 | -3,880 |
Production activity deduction | -6,033 | -10,247 | -7,081 |
Employee per diems, meals and entertainment | 9,906 | 7,960 | 6,441 |
Taxes on unincorporated joint ventures | -6,429 | -6,786 | -5,609 |
Other | -1,820 | 1,904 | 1,246 |
Total provision for income taxes from continuing operations | $157,408 | $217,940 | $158,859 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred income tax liabilities - | |||
Property and equipment | ($255,084) | ($218,739) | |
Goodwill | -72,030 | -58,643 | |
Other intangibles | -53,599 | -42,604 | |
Book/tax accounting method difference | -63,989 | -50,764 | |
Total deferred income tax liabilities | -444,702 | -370,750 | |
Deferred income tax assets - | |||
Accruals and reserves | 22,885 | 22,642 | |
Accrued insurance | 64,773 | 59,640 | |
Deferred revenue | 16,575 | 15,336 | |
Stock and incentive compensation and pension withdrawal liabilities | 53,610 | 57,674 | |
Net operating loss carryforwards | 21,511 | 20,828 | |
Other | 10,678 | 10,857 | |
Subtotal | 190,032 | 186,977 | |
Valuation allowance | -15,186 | -15,644 | -9,300 |
Total deferred income tax assets | 174,846 | 171,333 | |
Total net deferred income tax liabilities | ($269,856) | ($199,417) |
Income_Taxes_Net_Deferred_Inco
Income Taxes - Net Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current deferred income taxes: | ||
Assets | $58,272 | $61,263 |
Liabilities | -31,014 | -16,424 |
Net current deferred income taxes | 27,258 | 44,839 |
Non-current deferred income taxes: | ||
Assets | 3,402 | |
Liabilities | -300,516 | -244,256 |
Net non-current deferred income taxes | -297,114 | -244,256 |
Total net deferred income tax liabilities | ($269,856) | ($199,417) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||
Valuation allowance for deferred income tax assets | $15,186,000 | $15,644,000 | $9,300,000 |
(Increase) decrease in total valuation allowance | 400,000 | -6,300,000 | -500,000 |
Tax effect of state and foreign net operating loss carryforwards | 21,511,000 | 20,828,000 | |
2015 | 100,000 | ||
2016 | 0 | ||
2017 | 700,000 | ||
2018 | 100,000 | ||
2019 | 0 | ||
Thereafter | 24,400,000 | ||
Valuation allowance foreign and state net operating loss carryforwards | 13,900,000 | ||
Not provided U.S. income taxes of unremitted foreign earnings | 344,500,000 | ||
Reduction due to expiration of certain federal and state statutes of limitations | 9,376,000 | 11,479,000 | 11,965,000 |
Interest and penalties expense (income) in the provision for income taxes | 500,000 | -300,000 | -1,100,000 |
Gross Amount Before Balance Sheet Presentation Netting [Member] | |||
Income Taxes [Line Items] | |||
Tax effect of state and foreign net operating loss carryforwards | $25,300,000 | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Income Tax Examination, Year under Examination | 2011 | ||
Open Tax Year | 2013 | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Income Tax Examination, Year under Examination | 2012 | ||
Open Tax Year | 2014 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Unrecognized Tax Benefit (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $48,838 | $51,244 | $47,379 |
Additions based on tax positions related to the current year | 9,179 | 9,073 | 15,411 |
Additions for tax positions of prior years | 2,438 | 1,607 | |
Reductions for tax positions of prior years | -293 | ||
Reductions for audit settlements | -895 | ||
Reductions resulting from a lapse of the applicable statute of limitations periods | -9,376 | -11,479 | -11,965 |
Balance at end of year | $51,079 | $48,838 | $51,244 |
Income_Taxes_Balances_of_Unrec
Income Taxes - Balances of Unrecognized Tax Benefits (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $51,079 | $48,838 | $51,244 | $47,379 |
Portion that, if recognized, would reduce tax expense and effective tax rate | 43,363 | 40,562 | 43,910 | |
Accrued interest on unrecognized tax benefits | 6,360 | 5,837 | 6,088 | |
Accrued penalties on unrecognized tax benefits | 697 | 99 | 127 | |
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months lower bound | 0 | 0 | 0 | |
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months upper bound | 10,331 | 6,722 | 11,479 | |
Portion that, if recognized, would reduce tax expense and effective tax rate lower bound | 0 | 0 | 0 | |
Portion that, if recognized, would reduce tax expense and effective tax rate upper bound | $8,593 | $4,984 | $9,645 |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
Equity [Line Items] | ||||
Minimum number of shares that can be exchanged by exchangeable shareholders unless the number of remaining exchangeable shares registered in the name of the holder is less | 50,000 | |||
Number of shares of Common stock received for each exchangeable share | 1 | |||
Value of treasury stock acquired, cost method | $93,482,000 | |||
Aggregate authorized amount of common stock to be repurchased | 500,000,000 | |||
Reduction in net income as a result of non controlling interests | 18,368,000 | 19,388,000 | 16,027,000 | |
Carrying value of the investments held by Quanta in variable interest entities | 11,100,000 | 7,100,000 | ||
Carrying value of the investment held by noncontrolling interest in variable interest entities | 11,067,000 | 7,131,000 | ||
Distributions to non-controlling interests | 14,432,000 | 17,625,000 | 17,970,000 | |
Treasury Stock [Member] | ||||
Equity [Line Items] | ||||
Treasury stock acquired | 2,996,278 | 0 | ||
Value of treasury stock acquired, cost method | 93,482,000 | |||
Series F Preferred Stock [Member] | ||||
Equity [Line Items] | ||||
Number of preferred Stock issued to voting trust | 1 | 1 | ||
Exchangeable shares exchanged for common stock | 409,110 | |||
Series G Preferred Stock [Member] | ||||
Equity [Line Items] | ||||
Number of preferred Stock issued to voting trust | 1 | 0 | ||
Exchangeable Shares [Member] | ||||
Equity [Line Items] | ||||
Exchangeable shares exchanged for common stock | -409,110 | |||
Exchangeable stock shares outstanding | 7,325,971 | |||
Series F- and Series G- Preferred Stock [Member] | ||||
Equity [Line Items] | ||||
Exchangeable stock shares outstanding | 4,399,858 | |||
Common Stock Withheld for Settlement of Employee Tax Liabilities [Member] | Treasury Stock [Member] | ||||
Equity [Line Items] | ||||
Treasury stock acquired | 352,558 | 379,566 | 370,007 | |
Value of treasury stock acquired, cost method | $12,300,000 | $12,100,000 | $6,700,000 |
EquityBased_Compensation_Addit
Equity-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
2011 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares of common stock that may be issued | 11,750,000 | ||
2007 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares of common stock that may be issued | 4,000,000 | ||
Restricted Stock Units to be Settled in Cash [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common stock shares that may be received by RSU holder | 1 | ||
Compensation expense related to Restricted Stock Units to be settled in cash | $3.90 | $3.10 | $2 |
Payment to settle liabilities under compensation plan | 3.1 | 1.8 | 1.7 |
Accrued liabilities under Compensation Plan | 2.9 | 2.1 | |
Restricted Stock Units to be Settled in Cash [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for restricted stock and restricted stock units | 3 years | ||
Restricted Stock Units to be Settled in Cash [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for restricted stock and restricted stock units | 2 years | ||
Restricted Stock and Restricted Stock Units to be Settled in Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, shares | 1,400,000 | 1,500,000 | 1,300,000 |
Granted, weighted average grant date fair value, per share | $35.09 | $29.37 | $21.84 |
Awards vested | 1,100,000 | 1,200,000 | 900,000 |
Fair value of restricted stock, vested | 33.5 | 32.8 | 22.3 |
Compensation costs | 4.3 | ||
Unrecognized compensation cost, related to unvested restricted stock, total | 34.5 | ||
Expected weighted average period to recognize compensation cost on restricted stock and RSUs to be settled in stock (in years) | 1 year 6 months 22 days | ||
Restricted Stock and Restricted Stock Units to be Settled in Common Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for restricted stock and restricted stock units | 3 years | ||
Restricted Stock and Restricted Stock Units to be Settled in Common Stock [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for restricted stock and restricted stock units | 2 years | ||
Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, shares | 100,000 | 0 | 0 |
Granted, weighted average grant date fair value, per share | $35.20 | ||
Awards vested | 0 | ||
Compensation costs | $2.40 | ||
Required performance period | 3 years | ||
Performance units vesting conditions | These performance units cliff-vest at the end of a three-year performance period based on achievement of three-year financial targets and strategic goals on a 0% to 200% performance scale as determined by the Compensation Committee. | ||
Number of common shares distributed in connection with performance units | 0 | ||
Performance Units [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance units performance percentage | 200.00% | ||
Performance Units [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance units performance percentage | 0.00% |
EquityBased_Compensation_Summa
Equity-Based Compensation - Summary of Restricted Stock and RSU to be Settled in Common Stock Activity (Detail) (Restricted Stock and RSUs to be Settled in Common Stock [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Restricted Stock and RSUs to be Settled in Common Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at January 1, 2014, shares | 2,358 |
Granted, shares | 1,432 |
Vested, shares | -1,138 |
Forfeited, shares | -111 |
Unvested at December 31, 2014, shares | 2,541 |
Unvested, Weighted Average Grant Date Fair Value (Per share), Beginning of Period | $25.96 |
Granted, Weighted Average Grant Date Fair Value (Per share) | $35.09 |
Vested, Weighted Average Grant Date Fair Value (Per share) | $34.93 |
Forfeited, Weighted Average Grant Date Fair Value (Per share) | $29.58 |
Unvested, Weighted Average Grant Date Fair Value (Per share), End of Period | $31.25 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Benefit Plans [Line Items] | |||
Multiemployer defined contribution and other benefit plan contributions other than MEP DBP | $129 | $104.40 | $87 |
Contributions to the deferred compensation plan | 0.3 | 0 | 0 |
Deferred compensation obligations included in other long-term liabilities | 2.3 | ||
Deferred compensation obligations included in other long-term assets | 2 | ||
401K Plan [Member] | |||
Employee Benefit Plans [Line Items] | |||
Percentage of contribution by employer of each employee's contribution up to 3% | 100.00% | ||
Percentage of contribution by employer of each employee who contributes between three and six percent | 50.00% | ||
Percentage of employee contribution, lower range | 3.00% | ||
Percentage of employee contribution, high range | 6.00% | ||
Quanta 401(k) Plan, Contributions to non-union defined contribution plans | $14.30 | $11.80 | $11 |
Red Zone [Member] | |||
Employee Benefit Plans [Line Items] | |||
Percentage Funded in this Zone | Less than 65% | ||
Yellow Zone [Member] | |||
Employee Benefit Plans [Line Items] | |||
Percentage Funded in this Zone | Less than 80% | ||
Green Zone [Member] | |||
Employee Benefit Plans [Line Items] | |||
Percentage Funded in this Zone | at least 80% |
Employee_Benefit_Plans_Summary
Employee Benefit Plans - Summary of Plan Information Relating to Participation in Multi-Employer Pension Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Multiemployer Plans [Line Items] | |||
Contributions | $71,204 | $55,054 | $63,572 |
National Electrical Benefit Fund [Member] | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 53-0181657-001 | ||
PPA Zone Status | Green | Green | |
Subject to Financial Improvement/ Rehabilitation Plan | No | ||
Contributions | 20,758 | 17,268 | 18,509 |
Surcharge Imposed | No | ||
Expiration Date of Collective Bargaining Agreement | Varies through August 2018 | ||
Central Pension Fund of the IUOE & Participating Employers [Member] | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 36-6052390-001 | ||
PPA Zone Status | Green | Green | |
Subject to Financial Improvement/ Rehabilitation Plan | No | ||
Contributions | 7,847 | 4,259 | 6,843 |
Surcharge Imposed | No | ||
Expiration Date of Collective Bargaining Agreement | Varies through June 2017 | ||
Pipeline Industry Pension Fund [Member] | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 73-6146433-001 | ||
PPA Zone Status | Green | Green | |
Subject to Financial Improvement/ Rehabilitation Plan | No | ||
Contributions | 6,280 | 4,511 | 7,434 |
Surcharge Imposed | No | ||
Expiration Date of Collective Bargaining Agreement | Varies through June 2017 | ||
Pipeline Industry Pension Fund [Member] | Maximum [Member] | |||
Multiemployer Plans [Line Items] | |||
Plan years in which Quanta contributions were five percent or more of total plan contributions | 2013 | ||
Pipeline Industry Pension Fund [Member] | Minimum [Member] | |||
Multiemployer Plans [Line Items] | |||
Plan years in which Quanta contributions were five percent or more of total plan contributions | 2012 | ||
Laborers National Pension Fund [Member] | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 75-1280827-001 | ||
PPA Zone Status | Green | Green | |
Subject to Financial Improvement/ Rehabilitation Plan | No | ||
Contributions | 4,227 | 4,681 | 1,906 |
Surcharge Imposed | No | ||
Expiration Date of Collective Bargaining Agreement | Apr-15 | ||
Plan years in which Quanta contributions were five percent or more of total plan contributions | 2013 | ||
Eighth District Electrical Pension Fund [Member] | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 84-6100393-001 | ||
PPA Zone Status | Green | Green | |
Subject to Financial Improvement/ Rehabilitation Plan | No | ||
Contributions | 2,192 | 1,790 | 4,415 |
Surcharge Imposed | No | ||
Expiration Date of Collective Bargaining Agreement | Varies through February 2018 | ||
Eighth District Electrical Pension Fund [Member] | Maximum [Member] | |||
Multiemployer Plans [Line Items] | |||
Plan years in which Quanta contributions were five percent or more of total plan contributions | 2013 | ||
Eighth District Electrical Pension Fund [Member] | Minimum [Member] | |||
Multiemployer Plans [Line Items] | |||
Plan years in which Quanta contributions were five percent or more of total plan contributions | 2012 | ||
Joint Pension Local Union 164 IBEW [Member] | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 22-6031199-001 | ||
PPA Zone Status | Yellow | Yellow | |
Subject to Financial Improvement/ Rehabilitation Plan | Implemented | ||
Contributions | 1,816 | 222 | 515 |
Surcharge Imposed | No | ||
Expiration Date of Collective Bargaining Agreement | May-17 | ||
Plan years in which Quanta contributions were five percent or more of total plan contributions | 2013 | ||
Laborers Pension Trust Fund for Northern California [Member] | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 94-6277608-001 | ||
PPA Zone Status | Yellow | Yellow | |
Subject to Financial Improvement/ Rehabilitation Plan | Implemented | ||
Contributions | 1,357 | 987 | 21 |
Surcharge Imposed | Yes | ||
Expiration Date of Collective Bargaining Agreement | Jun-19 | ||
Michigan Upper Peninsula Intrl Brotherhood of Elec Workers Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 36-3020872-001 | ||
PPA Zone Status | Yellow | Yellow | |
Subject to Financial Improvement/ Rehabilitation Plan | Implemented | ||
Contributions | 1,307 | 299 | 518 |
Surcharge Imposed | No | ||
Expiration Date of Collective Bargaining Agreement | May-17 | ||
Michigan Upper Peninsula Intrl Brotherhood of Elec Workers Pension Plan [Member] | Maximum [Member] | |||
Multiemployer Plans [Line Items] | |||
Plan years in which Quanta contributions were five percent or more of total plan contributions | 2013 | ||
Michigan Upper Peninsula Intrl Brotherhood of Elec Workers Pension Plan [Member] | Minimum [Member] | |||
Multiemployer Plans [Line Items] | |||
Plan years in which Quanta contributions were five percent or more of total plan contributions | 2012 | ||
Operating Engineers Local Three Two Four Pension Fund [Member] | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 38-1900637-001 | ||
PPA Zone Status | Red | Red | |
Subject to Financial Improvement/ Rehabilitation Plan | Implemented | ||
Contributions | 1,086 | 818 | 135 |
Surcharge Imposed | Yes | ||
Expiration Date of Collective Bargaining Agreement | Varies through April 2018 | ||
OE Pension Trust Fund [Member] | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 94-6090764-001 | ||
PPA Zone Status | Red | Yellow | |
Subject to Financial Improvement/ Rehabilitation Plan | Implemented | ||
Contributions | 991 | 902 | 768 |
Surcharge Imposed | Yes | ||
Expiration Date of Collective Bargaining Agreement | Jul-16 | ||
Alaska Teamster Employer Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 92-6003463-024 | ||
PPA Zone Status | Red | Red | |
Subject to Financial Improvement/ Rehabilitation Plan | Implemented | ||
Contributions | 516 | 241 | |
Surcharge Imposed | Yes | ||
Expiration Date of Collective Bargaining Agreement | Oct-17 | ||
Central States, Southeast, and Southwest Areas Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number | 36-6044243-001 | ||
PPA Zone Status | Red | Red | |
Subject to Financial Improvement/ Rehabilitation Plan | Implemented | ||
Contributions | 22 | ||
Surcharge Imposed | Yes | ||
All Other Plans [Member] | |||
Multiemployer Plans [Line Items] | |||
Contributions | $22,827 | $19,076 | $22,486 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transactions [Abstract] | |||
Lease agreement terms | 5 years | ||
Related party lease expenses | $8.70 | $4.60 | $4.20 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
Oct. 09, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | Mar. 31, 2014 | Jul. 31, 2014 | Dec. 31, 2011 | Apr. 21, 2010 | |
Customer | Customer | Customer | mi | |||||||||
Loss Contingencies [Line Items] | ||||||||||||
Outstanding capital commitment | $800,000 | |||||||||||
Rent expense related to operating leases | 162,500,000 | 112,800,000 | 92,300,000 | |||||||||
Maximum guaranteed residual value | 434,200,000 | 434,200,000 | ||||||||||
Provision for long-term contract receivable | 49,900,000 | 52,500,000 | 102,460,000 | |||||||||
Selling, general and administrative expenses | 722,038,000 | 501,010,000 | 434,894,000 | |||||||||
Number of customers representing ten percent or more of net position | 2 | |||||||||||
Number of customers representing ten percent or more of consolidated revenues | 0 | 0 | 0 | |||||||||
Gross amount accrued for insurance claims | 170,200,000 | 170,200,000 | 161,800,000 | |||||||||
Long-term insurance claims | 130,800,000 | 130,800,000 | 122,600,000 | |||||||||
Related insurance recoveries/receivables | 9,100,000 | 9,100,000 | 9,100,000 | |||||||||
Related insurance recoveries/receivables included in prepaid expenses and other current assets | 800,000 | 800,000 | 700,000 | |||||||||
Related insurance recoveries/receivables included in other assets net | 8,300,000 | 8,300,000 | 8,400,000 | |||||||||
Letters of credit and bank guarantees under the credit facility | 336,700,000 | 336,700,000 | ||||||||||
Total amount of outstanding performance bonds | 2,800,000,000 | 2,800,000,000 | ||||||||||
Estimated cost to complete bonded projects | 701,000,000 | 701,000,000 | ||||||||||
Multi-employer plan withdrawal obligation | 39,600,000 | 32,600,000 | ||||||||||
Multi-employer plan withdrawal obligation, amount suggested by Plan which is different than amount recorded by company | 6,900,000 | |||||||||||
Multi-employer plan withdrawal obligation complete withdrawal | 4,800,000 | |||||||||||
Multi-employer plan withdrawal obligation accrued | 3,100,000 | |||||||||||
Cash proceeds deposited in Escrow account | 2,100,000 | |||||||||||
Customer One [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Percentage of net position | 15.00% | |||||||||||
Other Customer [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Percentage of net position | 11.00% | |||||||||||
Sunrise Powerlink Project [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Length of electrical transmission line to be constructed under contract | 117 | |||||||||||
Long-term contract receivable | 165,000,000 | |||||||||||
Claim for breach of contract | 113,000,000 | |||||||||||
Counterclaim for alleged untimely performance and breach of contract | 32,000,000 | |||||||||||
Contract receivable | 65,000,000 | 65,000,000 | ||||||||||
Provision for long-term contract receivable | 49,900,000 | 52,500,000 | 102,500,000 | |||||||||
Alberta Power Line [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Length of electrical transmission line to be constructed under contract | 500 | 500 | ||||||||||
Payment by 2017 [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Outstanding capital commitment | 10,100,000 | |||||||||||
Fiber Optic Committed Capital [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimated committed capital remainder of current year | 16,800,000 | 16,800,000 | ||||||||||
Vehicle Fleet Committed Capital [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimated committed capital remainder of current year | 5,600,000 | 5,600,000 | ||||||||||
Minimum [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Multi-employer plan withdrawal obligation | 40,100,000 | 40,100,000 | ||||||||||
Minimum [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | |||||||||
Minimum [Member] | Net Position [Member] | Customer Concentration Risk [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Concentration risk percentage | 10.00% | 10.00% | ||||||||||
Maximum [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Multi-employer plan withdrawal obligation | 55,400,000 | 55,400,000 | ||||||||||
National Gas Company of Trinidad and Tobago Arbitration [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Damages sought by Company in arbitration, value | 16,500,000 | |||||||||||
Loss contingency, damages sought by customer in arbitration counterclaim, value | 79,500,000 | |||||||||||
Arbitration damages liability | 17,300,000 | |||||||||||
Interest payable on arbitration damages and related attorney fees payable | 11,000,000 | |||||||||||
Amount of arbitration damages and attorneys fee paid | 28,300,000 | |||||||||||
Written Off of accounts receivable | 10,500,000 | |||||||||||
Selling, general and administrative expenses | 38,800,000 | 38,800,000 | ||||||||||
Lorenzo Bentonv Telecom Network Specialists Inc [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of staffing Agency | 29 | |||||||||||
Lorenzo Bentonv Telecom Network Specialists Inc [Member] | Class Damage [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Amount sought by plaintiff | 16,000,000 | |||||||||||
Lorenzo Bentonv Telecom Network Specialists Inc [Member] | Attorney Fees [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Amount sought by plaintiff | $5,000,000 |
Commitment_and_Contingencies_O
Commitment and Contingencies - Outstanding Capital Commitments Associated with Investments in Unconsolidated Affiliates (Detail) (Corporate Joint Venture [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Corporate Joint Venture [Member] | |
Other Commitments [Line Items] | |
Capital commitments, 2015 | $5,164 |
Capital commitments, 2016 | 9,168 |
Capital commitments, 2017 | 36,891 |
Capital commitments, 2018 | 0 |
Capital commitments, 2019 | 27,242 |
Capital commitments, thereafter | 0 |
Total capital commitments associated with investments in unconsolidated affiliated related to an EPC electrical transmission project | $78,465 |
Commitment_and_Contingencies_O1
Commitment and Contingencies - Outstanding Capital Commitments Associated with Investments in Unconsolidated Affiliates (Parenthetical) (Detail) (Corporate Joint Venture [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Corporate Joint Venture [Member] | |
Other Commitments [Line Items] | |
Return of capital from unconsolidated affiliates anticipated for 2017 | $48.70 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Minimum Lease Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $79,441 |
2016 | 49,455 |
2017 | 39,462 |
2018 | 29,043 |
2019 | 14,716 |
Thereafter | 23,470 |
Total minimum lease payments | $235,587 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 3 | ||
Property and equipment | 1,480,128 | 1,205,608 | |
Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of foreign revenues | 82.00% | 86.00% | 96.00% |
Foreign Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from foreign operations | 1,890,000 | 1,310,000 | 861,500 |
Property and equipment | 372,900 | 196,800 |
Segment_Information_Summarized
Segment Information - Summarized Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $2,052,982 | $2,171,144 | $1,864,550 | $1,762,574 | $1,817,623 | $1,645,132 | $1,474,377 | $1,585,710 | $7,851,250 | $6,522,842 | $5,920,269 |
Operating income (loss) | 475,575 | 526,928 | 465,122 | ||||||||
Depreciation | 158,110 | 134,110 | 120,303 | ||||||||
Electric Power Infrastructure [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 5,238,627 | 4,480,647 | 4,206,509 | ||||||||
Operating income (loss) | 458,332 | 521,855 | 520,834 | ||||||||
Depreciation | 74,723 | 63,407 | 55,205 | ||||||||
Oil and Gas Infrastructure Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,444,558 | 1,869,615 | 1,534,713 | ||||||||
Operating income (loss) | 162,797 | 138,543 | 55,410 | ||||||||
Depreciation | 57,414 | 47,050 | 43,285 | ||||||||
Fiber Optic Licensing and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 168,065 | 172,580 | 179,047 | ||||||||
Operating income (loss) | 54,386 | 55,415 | 61,299 | ||||||||
Depreciation | 18,495 | 16,786 | 15,173 | ||||||||
Corporate and Non-Allocated Costs [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | -199,940 | -188,885 | -172,421 | ||||||||
Depreciation | $7,478 | $6,867 | $6,640 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) - Consolidated Operating Results by Quarter (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $2,052,982 | $2,171,144 | $1,864,550 | $1,762,574 | $1,817,623 | $1,645,132 | $1,474,377 | $1,585,710 | $7,851,250 | $6,522,842 | $5,920,269 |
Gross profit | 327,030 | 352,971 | 281,448 | 272,071 | 302,843 | 273,053 | 241,284 | 238,273 | 1,233,520 | 1,055,453 | 937,707 |
Net income | 70,975 | 100,015 | 85,444 | 58,648 | 171,317 | 98,409 | 74,726 | 76,857 | 315,082 | 421,309 | 322,656 |
Net income attributable to common stock | 66,576 | 94,648 | 81,082 | 54,408 | 166,697 | 92,906 | 70,237 | 72,081 | 296,714 | 401,921 | 306,629 |
Net income from continuing operations | $67,203 | $94,648 | $81,082 | $54,408 | $166,697 | $92,906 | $70,237 | $72,081 | $297,341 | $401,921 | $289,694 |
Earnings per share from continuing operations attributable to common stock - basic and diluted | $0.30 | $0.43 | $0.37 | $0.25 | $0.77 | $0.43 | $0.33 | $0.34 | $1.35 | $1.87 | $1.36 |
Quarterly_Financial_Data_Addit
Quarterly Financial Data - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Quarterly Financial Data [Line Items] | |||||||
Provision for long-term contract receivable | $49,900,000 | $52,500,000 | $102,460,000 | ||||
Provision for long-term contract receivable, net of tax | 30,300,000 | 32,300,000 | |||||
Selling, general and administrative expenses | 722,038,000 | 501,010,000 | 434,894,000 | ||||
Gain on sale of equity ownership interest, Pre tax | 112,700,000 | ||||||
Gain on sale of equity ownership interest, Net of tax | 70,500,000 | ||||||
National Gas Company of Trinidad and Tobago Arbitration [Member] | |||||||
Quarterly Financial Data [Line Items] | |||||||
Selling, general and administrative expenses | 38,800,000 | 38,800,000 | |||||
Selling, general and administrative expenses, Net of tax | $25,800,000 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 |
Entity | Entity | Entity | Entity | Entity | |
Subsequent Event [Line Items] | |||||
Number of business acquisitions | 4 | 9 | 6 | 4 | |
Cash paid for acquisitions | $284,300 | $341,100 | |||
Common stock repurchases | 93,482 | ||||
Scenario Forecast [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of business acquisitions | 3 | ||||
Cash paid for acquisitions | 36,300 | ||||
Common stock repurchases, shares | 6,700,000 | ||||
Common stock repurchases | $182,000 |