Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 03, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PWR | |
Entity Registrant Name | QUANTA SERVICES INC | |
Entity Central Index Key | 1,050,915 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 144,194,115 | |
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 | 449,929 | |
Exchangeable Shares Not Associated with Preferred Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,926,113 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 162,344 | $ 128,771 |
Accounts receivable, net of allowances of $2,719 and $5,226 | 1,384,554 | 1,621,133 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 466,476 | 317,745 |
Inventories | 74,976 | 75,285 |
Prepaid expenses and other current assets | 156,037 | 134,585 |
Total current assets | 2,244,387 | 2,277,519 |
Property and equipment, net of accumulated depreciation of $824,108 and $755,272 | 1,160,870 | 1,101,959 |
Other assets, net | 93,033 | 76,333 |
Other intangible assets, net of accumulated amortization of $283,889 and $264,674 | 203,256 | 205,074 |
Goodwill | 1,595,555 | 1,552,658 |
Total assets | 5,297,101 | 5,213,543 |
Current Liabilities: | ||
Current maturities of long-term debt and short-term borrowings | 5,603 | 7,067 |
Accounts payable and accrued expenses | 811,521 | 782,134 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 388,314 | 399,230 |
Current liabilities of discontinued operations | 2,651 | 15,313 |
Total current liabilities | 1,208,089 | 1,203,744 |
Long-term debt and notes payable, net of current maturities | 401,119 | 475,364 |
Deferred income taxes | 200,683 | 186,491 |
Insurance and other non-current liabilities | 284,036 | 260,129 |
Total liabilities | 2,093,927 | 2,125,728 |
Commitments and Contingencies | ||
Equity: | ||
Common stock, value | 2 | 2 |
Additional paid-in capital | 3,676,910 | 3,497,740 |
Retained earnings | 1,714,756 | 1,677,698 |
Accumulated other comprehensive loss | (231,020) | (294,689) |
Treasury stock, 84,757,044 and 74,991,343 common shares, at cost | (1,960,325) | (1,795,257) |
Total stockholders' equity | 3,200,323 | 3,085,494 |
Non-controlling interests | 2,851 | 2,321 |
Total equity | 3,203,174 | 3,087,815 |
Total liabilities and equity | 5,297,101 | 5,213,543 |
Exchangeable Shares [Member] | ||
Equity: | ||
Common stock, value | ||
Series F Preferred Stock [Member] | ||
Equity: | ||
Preferred Stock, value | ||
Series G Preferred Stock [Member] | ||
Equity: | ||
Preferred Stock, value |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Allowances on accounts receivable, current | $ 2,719 | $ 5,226 |
Accumulated depreciation on property and equipment | 824,108 | 755,272 |
Accumulated amortization on other intangible assets | $ 283,889 | $ 264,674 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 228,951,159 | 227,898,509 |
Common stock, shares outstanding | 144,194,115 | 152,907,166 |
Treasury stock, common shares | 84,757,044 | 74,991,343 |
Exchangeable Shares [Member] | ||
Exchangeable Shares, par value | ||
Common stock, shares issued | 6,876,042 | 6,876,042 |
Common stock, shares outstanding | 6,876,042 | 6,876,042 |
Series F Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
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 | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 1 | 1 |
Preferred stock, shares issued | 1 | 1 |
Preferred stock, shares outstanding | 1 | 1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,792,430 | $ 1,872,340 | $ 3,506,167 | $ 3,733,726 |
Cost of services (including depreciation) | 1,592,213 | 1,644,835 | 3,102,637 | 3,268,315 |
Gross profit | 200,217 | 227,505 | 403,530 | 465,411 |
Selling, general and administrative expenses | 156,607 | 149,923 | 315,131 | 295,386 |
Amortization of intangible assets | 8,141 | 8,731 | 15,636 | 17,024 |
Operating income | 35,469 | 68,851 | 72,763 | 153,001 |
Interest expense | (3,583) | (1,675) | (7,172) | (3,075) |
Interest income | 641 | 319 | 1,157 | 772 |
Equity in losses of unconsolidated affiliates | (378) | (314) | (559) | (314) |
Other income (expense), net | (725) | (134) | (463) | (346) |
Income from continuing operations before income taxes | 31,424 | 67,047 | 65,726 | 150,038 |
Provision for income taxes | 14,695 | 31,584 | 28,138 | 62,185 |
Net income from continuing operations | 16,729 | 35,463 | 37,588 | 87,853 |
Net income from discontinued operations | 14,102 | 19,897 | ||
Net income | 16,729 | 49,565 | 37,588 | 107,750 |
Less: Net income attributable to non-controlling interests | 167 | 3,456 | 530 | 8,157 |
Net income attributable to common stock | 16,562 | 46,109 | 37,058 | 99,593 |
Amounts attributable to common stock: | ||||
Net income from continuing operations | 16,562 | 32,007 | 37,058 | 79,696 |
Net income from discontinued operations | 14,102 | 19,897 | ||
Net income attributable to common stock | $ 16,562 | $ 46,109 | $ 37,058 | $ 99,593 |
Earnings per share attributable to common stock - basic and diluted: | ||||
Continuing operations | $ 0.11 | $ 0.15 | $ 0.23 | $ 0.37 |
Discontinued operations | 0.07 | 0.09 | ||
Net income attributable to common stock | $ 0.11 | $ 0.22 | $ 0.23 | $ 0.46 |
Shares used in computing earnings per share: | ||||
Weighted average basic shares outstanding | 156,128 | 213,047 | 159,577 | 214,257 |
Weighted average diluted shares outstanding | 156,130 | 213,059 | 159,579 | 214,269 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 16,729 | $ 49,565 | $ 37,588 | $ 107,750 |
Other comprehensive income (loss), net of tax provision: | ||||
Foreign currency translation adjustment, net of tax of $0, $0, $0 and $0 | 3,083 | 14,897 | 63,669 | (74,052) |
Other, net of tax of $0, $(3), $0 and $(2) | 8 | 3 | ||
Other comprehensive income (loss) | 3,083 | 14,905 | 63,669 | (74,049) |
Comprehensive income | 19,812 | 64,470 | 101,257 | 33,701 |
Less: Comprehensive income attributable to non-controlling interests | 167 | 3,456 | 530 | 8,157 |
Total comprehensive income attributable to Quanta stockholders | $ 19,645 | $ 61,014 | $ 100,727 | $ 25,544 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Other comprehensive income other tax | $ 0 | $ (3) | $ 0 | $ (2) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities of Continuing Operations: | ||||
Net income | $ 16,729 | $ 49,565 | $ 37,588 | $ 107,750 |
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations - | ||||
Income from discontinued operations | (14,102) | (19,897) | ||
Depreciation | 42,759 | 41,030 | 83,929 | 80,428 |
Amortization of intangible assets | 8,141 | 8,731 | 15,636 | 17,024 |
Equity in losses of unconsolidated affiliates | 378 | 314 | 559 | 314 |
Amortization of debt issuance costs | 338 | 273 | 678 | 546 |
(Gain) loss on sale of property and equipment | 654 | (7) | 547 | (110) |
Foreign currency loss | 558 | 523 | 668 | 713 |
Provision for (recovery of) doubtful accounts | 56 | 126 | (927) | 704 |
Deferred income tax provision (benefit) | (7,858) | 280 | (5,142) | 992 |
Non-cash stock-based compensation | 9,503 | 9,714 | 23,222 | 19,185 |
Tax impact of stock-based equity awards | (122) | (3) | (122) | (4) |
Changes in operating assets and liabilities, net of non-cash transactions - (Increase) decrease in - | ||||
Accounts and notes receivable | 105,399 | 17,779 | 264,394 | 137,652 |
Costs and estimated earnings in excess of billings on uncompleted contracts | (82,456) | (3,281) | (134,923) | (66,769) |
Inventories | (2,256) | (9,869) | 2,281 | (12,991) |
Prepaid expenses and other current assets | (13,513) | (7,270) | (11,687) | (9,576) |
Accounts payable and accrued expenses and other non-current liabilities | 32,808 | 22,235 | 3,092 | 51,446 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (48,465) | (7,551) | (12,527) | (14,569) |
Other, net | 3,875 | (2,363) | (999) | (7,086) |
Net cash provided by operating activities of continuing operations | 66,528 | 106,124 | 266,267 | 285,752 |
Cash Flows from Investing Activities of Continuing Operations: | ||||
Proceeds from sale of property and equipment | 5,165 | 7,733 | 10,254 | 9,015 |
Additions of property and equipment | (60,855) | (62,493) | (108,550) | (120,997) |
Cash paid for acquisitions, net of cash acquired | (35) | (37,936) | (39,710) | (72,669) |
Investments in and return of equity from unconsolidated affiliates | (3,163) | (1,784) | (5,388) | (2,593) |
Cash received from (paid for) other investments, net | 503 | 2,871 | 1,080 | 3,193 |
Cash withdrawn from restricted cash | 42 | 42 | 214 | |
Cash paid for intangibles | (211) | (211) | ||
Net cash used in investing activities of continuing operations | (58,343) | (91,820) | (142,272) | (184,048) |
Cash Flows from Financing Activities of Continuing Operations: | ||||
Borrowings under credit facility | 696,572 | 625,286 | 1,350,988 | 772,742 |
Payments under credit facility | (696,668) | (528,741) | (1,426,271) | (632,684) |
Payments on other long-term debt | (692) | (959) | (5,547) | (1,359) |
Payments on short-term debt | (4,248) | (4,711) | (5,170) | |
Distributions to non-controlling interests | (2,500) | (5,003) | ||
Tax impact of stock-based equity awards | 122 | 3 | 122 | 4 |
Exercise of stock options | 163 | 278 | 214 | 354 |
Repurchase of common stock | (172,279) | (354,279) | ||
Net cash used in financing activities of continuing operations | (503) | (83,160) | (85,205) | (225,395) |
Discontinued operations: | ||||
Net cash provided by operating activities | 11,432 | 21,031 | ||
Net cash used in investing activities | (437) | (13,517) | (6,080) | (21,181) |
Net cash used in discontinued operations | (437) | (2,085) | (6,080) | (150) |
Effect of foreign exchange rate changes on cash and cash equivalents | (216) | 834 | 863 | (1,247) |
Net increase (decrease) in cash and cash equivalents | 7,029 | (70,107) | 33,573 | (125,088) |
Cash and cash equivalents, beginning of period | 155,315 | 135,534 | 128,771 | 190,515 |
Cash and cash equivalents, end of period | 162,344 | 65,427 | 162,344 | 65,427 |
Supplemental disclosure of cash flow information: | ||||
Interest paid related to continuing operations | (3,066) | (1,422) | (5,507) | (2,610) |
Income taxes paid | (27,038) | (37,837) | (33,524) | (50,241) |
Income tax refunds related to continuing operations | 785 | 10,293 | 1,679 | 10,738 |
Discontinued Operations [Member] | ||||
Supplemental disclosure of cash flow information: | ||||
Income taxes paid | $ (437) | $ (39) | $ (6,080) | $ (244) |
Business and Organization
Business and Organization | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 two reportable segments: (1) Electric Power Infrastructure Services and (2) Oil and Gas Infrastructure Services. 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, the installation of cable and control systems for light rail lines and limited ancillary telecommunication infrastructure services. 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. Acquisitions During the first quarter of 2016, Quanta completed three acquisitions. The results of two of the acquired companies are generally included in Quanta’s Electric Power Infrastructure Services segment. These companies included a full service medium- and high-voltage powerline contracting company located in the United States and a telecommunications company located in Canada. Quanta also acquired a pipeline service contractor located in the United States, the results of which are generally included in Quanta’s Oil and Gas Infrastructure Services segment. As these transactions were effective during the first quarter of 2016, 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 service offerings in the United States and Canada. During 2015, Quanta acquired 11 companies. The results of eight of the acquired companies are generally included in Quanta’s Electric Power Infrastructure Services segment. These companies include a foundation services company located in the United States, an electrical contracting company located in the United States, an electrical engineering company located in Australia, a powerline construction company located in the United States, an engineering company located in Canada, an engineering, procurement and construction services company based in the United States, an underground construction contracting company located in Canada, and a supplier and material procurement specialist for the power and utility industry in Canada. The results of the remaining three acquired companies are generally included in Quanta’s Oil and Gas Infrastructure Services segment. These companies include a company that services above-ground storage tanks in the United States, an underground utility distribution contractor that provides services to gas and electric utilities in Canada, and a company that specializes in the engineering, procurement, construction, and commissioning of compression and surface facilities for the high pressure gas industry in Australia. Disposition — Fiber Optic Licensing Operations On April 29, 2015, Quanta entered into a stock purchase agreement with Crown Castle International Corp. (Crown Castle) pursuant to which Quanta agreed to sell its fiber optic licensing operations. The purchase agreement contained customary representations and warranties, covenants and indemnities. On August 4, 2015, Quanta completed the sale for a purchase price of approximately $1 billion in cash, resulting in after-tax net proceeds of approximately $848 million. In the third quarter of 2015, Quanta recognized a net of tax gain of approximately $171 million. Quanta has presented the results of operations, financial position, cash flows and disclosures of the fiber optic licensing operations as discontinued operations for all periods in the accompanying unaudited condensed consolidated financial statements. These results were included in Quanta’s Fiber Optic Licensing and Other segment prior to the second quarter of 2015. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
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. Interim Condensed Consolidated Financial Information These unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (US GAAP), have been condensed or omitted pursuant to those rules and regulations. Quanta believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income and cash flows with respect to the interim condensed consolidated financial statements have been included. The results of operations and comprehensive income for the interim periods are not necessarily indicative of the results for the entire fiscal year. The results of Quanta have historically been subject to significant seasonal fluctuations. Quanta recommends that these unaudited condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto of Quanta and its subsidiaries included in Quanta’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC on February 29, 2016. 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, multiemployer pension plan withdrawal liabilities, revenue recognition for construction contracts inclusive of contractual change orders and claims, 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 $162.3 million and $128.8 million as of June 30, 2016 and December 31, 2015. 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 June 30, 2016 and December 31, 2015, cash equivalents were $5.7 million and $1.4 million, and consisted primarily of money market investments and money market mutual funds and are discussed further in Fair Value Measurements 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 June 30, 2016 and December 31, 2015, Quanta had allowances for doubtful accounts on current receivables of approximately $2.7 million and $5.2 million. Long-term accounts receivable are included within other assets, net on the consolidated balance sheets. 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 June 30, 2016 and December 31, 2015 were approximately $221.0 million and $250.1 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 June 30, 2016 and December 31, 2015 were $4.4 million and $4.5 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 June 30, 2016 and December 31, 2015, the balances of unbilled receivables included in accounts receivable were approximately $228.0 million and $233.6 million. Goodwill and Other Intangibles Quanta has recorded goodwill in connection with its historical acquisitions of companies. Upon acquisition, these companies were 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 two internal divisions: the Electric Power Infrastructure Services Division and the Oil and Gas Infrastructure Services 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 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. 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 2015, 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. Step one of the analysis indicated that the implied fair value of each of Quanta’s reporting units, other than recently acquired reporting units and two other reporting units described below, was substantially in excess of its carrying value. After performing step two of the analysis, management concluded that goodwill was impaired at two reporting units in Quanta’s Oil and Gas Infrastructure Services Division. Accordingly, during the fourth quarter of 2015, Quanta recorded a $39.8 million non-cash charge for the impairment of goodwill which primarily resulted from lower forecasted oil and gas services revenues for its Gulf of Mexico operations and certain operations in Australia, due to the extended low commodity price environment. As discussed generally above, when evaluating the 2015 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. After giving consideration to a 10% decrease in the fair value of each of Quanta’s reporting units, the results of the assessment at December 31, 2015 did not change. However, circumstances such as market declines, unfavorable economic conditions, the loss of a major customer or other factors could increase the risk of impairment of goodwill in future periods. If an operating unit experiences prolonged periods of declining revenues, operating margins or both, it may be at risk of failing step one of the goodwill impairment test. Certain operating units have experienced declines over the short-term due to challenging macroeconomic conditions in certain geographic areas, the decline in oil prices which has negatively impacted customer spending, project delays and constrained customer capital spending as a result of an increasingly complex regulatory and permitting environment. Certain operating units within our Oil and Gas Infrastructure Services segment that primarily operate within the midstream and smaller-scale transmission market have continued to be negatively impacted by these factors. While no interim impairment charges were recorded during the six months ended June 30, 2016, Quanta will continue to monitor these conditions and others to determine if it is necessary to perform step one of the fair-value based impairment test for one or more operating units prior to the annual impairment assessment. Quanta’s intangible assets include customer relationships, backlog, trade names, non-compete agreements, patented rights and developed technology, all 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 and estimated customer attrition rates, 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. During the fourth quarter of 2015, Quanta recorded an impairment charge of $12.1 million related to customer relationships, trade names and non-compete agreement intangible assets. These intangible asset impairments primarily resulted from lower forecasted oil and gas services revenues for Quanta’s Gulf of Mexico operations and certain operations in Australia, due to the extended low commodity price environment. The two reporting units impacted also had related goodwill impairments, as discussed above, and are in Quanta’s Oil and Gas Infrastructure Services Division. 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 or profit participation. These investments may also include Quanta’s participation in different financing structures such as the extension of loans to project specific entities, the acquisition of convertible notes issued by project specific entities, or other strategic financing arrangements. Quanta 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 related to investments 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. Revenue Recognition 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. Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors including unforeseen circumstances not included in our cost estimates or covered by our contracts for which we cannot obtain adequate compensation, including concealed or unknown environmental conditions; changes in the cost of equipment, commodities, materials or labor; unanticipated costs or claims due to customer-caused delays, customer failure to provide required materials or equipment, errors in engineering, specifications or designs, project modifications, or contract termination and our inability to obtain reimbursement for such costs or recover on such claims; weather conditions; and quality issues requiring rework or replacement. These factors, along with other risks inherent in performing fixed price contracts may cause actual revenues and gross profits for a project to differ from previous estimates and could result in reduced profitability or losses on projects. 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. During the six months ended June 30, 2016, Quanta experienced performance issues on an ongoing power plant project in Alaska that resulted in the revision of its estimate of total costs necessary to complete this project. During the first six months of 2016 and as the project was planned to transition from final construction and testing to the commissioning phase, the project was negatively impacted by further third party engineering deficiencies that caused changes to Quanta’s planned scope of work and by performance failures by other contractors operating onsite. These issues resulted in higher than expected production costs and a related impact on production sequencing. In addition to these items, late in the second quarter of 2016 Quanta also experienced a claimed force majeure event which disrupted the project and Quanta provided the customer and its insurance providers with a notice of force majeure in order to seek schedule relief and cost recovery from disruptions. Quanta is also in the process of developing potential claims for damages that may have resulted from the third party engineering and other contractor performance issues; however, no revenues or cost recovery have been reflected in Quanta’s estimate of total project losses at June 30, 2016. The increase in estimated costs resulted in the recognition of a project loss of $30.5 million during the three months ended June 30, 2016. Project losses were $51.8 million during the six months ended June 30, 2016. At June 30, 2016, this project had a contract value of $201 million and was approximately 90% complete. This project is expected to be substantially completed near the end of the third quarter of 2016. As this project continues through the final construction and commissioning phases, it is possible that additional performance issues or other unforeseen circumstances could occur and result in the recognition of additional losses on this project; however, such amounts cannot currently be estimated. Quanta’s operating results for the three and six months ended June 30, 2016 were negatively impacted by 9.2% and 6.7% as a result of aggregate changes in contract estimates related to projects that were in progress at December 31, 2015. Operating results for the three and six months ended June 30, 2016 included losses from the power plant construction project in Alaska mentioned above, offset by numerous individually immaterial changes in project profitability generally due to better than expected performance for projects that were ongoing at year-end. Quanta’s operating results for the three and six months ended June 30, 2015 were impacted by less than 5% as a result of aggregate changes in contract estimates related to projects that were in progress at December 31, 2014. Operating results for the three and six months ended June 30, 2015 included losses of $31.8 million and $48.2 million related to three projects as a result of increased costs associated with performance and site related factors that adversely impacted production. These projects included the ongoing power plant construction project in Alaska, an electric transmission project in Canada that was substantially completed in the third quarter of 2015, and a directional drilling project in Canada that was substantially completed in the fourth quarter of 2015. Operating results for the three and six months ended June 30, 2015 were impacted by positive changes in estimates of $8.5 million and $21.0 million as a result of better than expected performance on an electric transmission project in the United States that was substantially completed in the second quarter of 2015. 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 June 30, 2016 and December 31, 2015, Quanta had approximately $106.0 million and $137.2 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. 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; however, such amounts cannot currently be estimated. 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 esti |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 3. NEW ACCOUNTING PRONOUNCEMENTS: Adoption of New Accounting Pronouncements 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 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 adopted this guidance effective January 1, 2016, and the adoption of the update did not have a significant impact on Quanta’s consolidated financial statements or related disclosures. In April 2015, the FASB issued an update that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts and premiums. The update is required to be adopted retroactively for all periods presented. In August 2015, the FASB issued another update that states that the Securities Exchange Commission (SEC) staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Quanta adopted this guidance effective January 1, 2016, and the adoption of the update did not have a significant impact on Quanta’s consolidated financial statements or related disclosures. In April 2015, the FASB issued an update that provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. An entity can elect to adopt the amendments either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. Quanta adopted this guidance effective January 1, 2016, and the adoption of the update did not have a significant impact on Quanta’s consolidated financial statements or related disclosures. In September 2015, the FASB issued an update that requires an acquiring company to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which such adjustments are determined. An acquiring company must record any effect on earnings from changes in depreciation or amortization or other income effects, calculated as if the accounting had been completed at the acquisition date. The acquiring company must also present separately on the face of the income statement or disclose in the notes the amount recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment had been recognized as of the acquisition date. The update is required to be adopted prospectively to adjustments that occur after the effective date with earlier application permitted for financial statements that have not yet been issued. Quanta adopted this guidance effective January 1, 2016, and the adoption of the update did not have a significant impact on Quanta’s consolidated financial statements or related disclosures. Accounting Standards Not Yet Adopted 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 revenues 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. In July 2015, the FASB affirmed its proposal to defer the effective date until fiscal years beginning on or after December 15, 2017. 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. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements and will adopt this guidance effective January 1, 2018. 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 any substantial doubt by Quanta about its ability to continue as a going concern, if such substantial doubt were to exist. Quanta will adopt this guidance by December 31, 2016. In July 2015, the FASB issued an update that requires inventory to be measured at the lower of either cost or net realizable value. When evidence exists that the net realizable value of inventory is lower than its cost, the difference will be recognized as a loss in earnings in the period in which it occurs. The update is required to be adopted prospectively and is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements and will adopt this guidance by January 1, 2017. In January 2016, the FASB issued an update that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The new standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for financial statements of fiscal years or interim periods that have not been previously issued. Quanta is evaluating the impact of the new standard on its consolidated financial statements and will adopt the new standard by January 1, 2018. In February 2016, the FASB issued an update that requires companies that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those assets. The new standard is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted for financial statements of fiscal years or interim periods that have not been previously issued. Quanta is evaluating the impact of the new standard on its consolidated financial statements and will adopt the new standard by January 1, 2019. In March 2016, the FASB issued an update that requires companies with share-based payments to record all of the tax effects related to such share-based payments at settlement (or expiration) through the income statement rather than through equity. It is anticipated that companies will experience increased volatility of income tax expense upon adoption of this update. This change is required to be applied prospectively to all excess tax benefits and tax deficiencies resulting from settlements after the date of the adoption of the update and is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements and will adopt this guidance by January 1, 2017. In June 2016, the FASB issued an update that will change the way companies measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The update will require companies to use an “expected loss” model for instruments measured at amortized cost and to record allowances for available-for-sale (AFS) debt securities rather than reduce the carrying amounts. The update will also require disclosure of information regarding how a company developed its allowance, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. Companies will apply this standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The new standard is effective for interim and annual reporting periods beginning after December 15, 2019, although early adoption is permitted for annual reporting periods beginning after December 15, 2018. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements and will adopt this guidance by January 1, 2020. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 4. DISCONTINUED OPERATIONS: On August 4, 2015, Quanta completed the sale of its fiber optic licensing operations to Crown Castle for an aggregate purchase price of approximately $1 billion in cash, resulting in estimated after-tax net proceeds of approximately $848 million. In the third quarter of 2015, Quanta recognized a pre-tax gain of approximately $272 million and a corresponding tax expense of approximately $101 million, which resulted in a gain on the sale, net of tax, of approximately $171 million. Quanta has presented the results of operations, financial position, cash flows and disclosures related to its fiber optic licensing operations as discontinued operations in the accompanying unaudited condensed consolidated financial statements. The results were included in Quanta’s Fiber Optic Licensing and Other segment prior to the second quarter of 2015. Quanta will remain liable for all taxes and insured claims associated with the fiber optic licensing operations arising on or before or outstanding as of August 4, 2015. The following represents a reconciliation of the major classes of line items constituting income from discontinued operations related to Quanta’s fiber optic licensing operations (in thousands): Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Major classes of line items constituting pretax income from discontinued operations: Revenues $ 25,692 $ 51,262 Expenses: Cost of services (including depreciation) 10,896 21,711 Selling, general and administrative expenses 5,106 9,881 Amortization of intangible assets 413 825 Other income (expense) items that are not major 9 10 Income before taxes of discontinued operations 9,286 18,855 Provision for income taxes related to discontinued operations (4,816 ) (1,042 ) Net income from discontinued operations as presented in the statements of operations $ 14,102 $ 19,897 There were no assets or non-current liabilities associated with fiber optic licensing operations at June 30, 2016 or December 31, 2015. The following represents a reconciliation of the carrying amounts of major classes of current liabilities of fiber optic licensing operations (in thousands): June 30, 2016 December 31, 2015 Carrying amounts of major classes of liabilities of discontinued operations: Current liabilities: Accounts payable and accrued expenses $ 2,651 $ 15,313 Total current liabilities of discontinued operations $ 2,651 $ 15,313 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 5. ACQUISITIONS: 2016 Acquisitions During the first quarter of 2016, Quanta completed three acquisitions. The results of two of the acquired companies are generally included in Quanta’s Electric Power Infrastructure Services segment. These companies included a full service medium- and high-voltage powerline contracting company located in the United States and a telecommunications company located in Canada. Quanta also acquired a pipeline service contractor located in the United States, the results of which are generally included in Quanta’s Oil and Gas Infrastructure Services segment. The aggregate consideration for these acquisitions consisted of approximately $42.2 million paid or payable in cash, subject to certain adjustments, and contingent consideration payments of up to $35 million, which will be paid if certain financial targets are achieved. Based on the estimated fair value of this contingent consideration, Quanta recorded a $15.4 million liability. As these transactions were effective during the first quarter of 2016, the results have been included in Quanta’s consolidated financial statements beginning on the respective dates of acquisition. These acquisitions should enable Quanta to further enhance its service offerings in the United States and Canada. 2015 Acquisitions During 2015, Quanta acquired 11 companies. The results of eight of the acquired companies are generally included in Quanta’s Electric Power Infrastructure Services segment. These companies include a foundation services company located in the United States, an electrical contracting company located in the United States, an electrical engineering company located in Australia, a powerline construction company located in the United States, an engineering company located in Canada, an engineering, procurement and construction services company based in the United States, an underground construction contracting company located in Canada, and a supplier and material procurement specialist for the power and utility industry in Canada. The results of the remaining three acquired companies are generally included in Quanta’s Oil and Gas Infrastructure Services segment. These companies include a company that services above-ground storage tanks in the United States, an underground utility distribution contractor that provides services to gas and electric utilities in Canada, and a company that specializes in the engineering, procurement, construction, and commissioning of compression and surface facilities for the high pressure gas industry in Australia. The aggregate consideration for these acquisitions consisted of approximately $110.4 million paid or payable in cash, subject to net working capital adjustments, 461,037 shares of Quanta common stock valued on the settlement dates of the acquisitions at approximately $10.1 million, and $1.0 million in contingent consideration. As these transactions were effective during 2015, the results have been 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 the United States, Canada and Australia. 2016 and 2015 Acquisitions Quanta is in the process of finalizing its assessments of the fair values of the acquired assets and assumed liabilities related to businesses acquired subsequent to June 30, 2015, 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 with possible updates primarily related to certain tax estimates. The aggregate purchase consideration related to the businesses acquired in 2015 subsequent to June 30, 2015 was preliminarily allocated to acquired assets and assumed liabilities, which resulted in a preliminary allocation of approximately $19.4 million of net tangible assets, $26.4 million of goodwill and $10.2 million of other intangible assets. Additionally, the aggregate purchase consideration related to the first quarter 2016 acquisitions was preliminarily allocated to acquired assets and assumed liabilities, which resulted in a preliminary allocation of approximately $23.2 million of net tangible assets, $26.1 million of goodwill and $8.3 million of other intangible assets. The following table summarizes the aggregate consideration paid or payable as of June 30, 2016 for the 2016 and 2015 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). 2016 2015 Consideration: Value of Quanta common stock and exchangeable shares issued $ — $ 10,127 Cash paid or payable 42,211 110,428 Contingent consideration 15,400 1,001 Fair value of total consideration transferred or estimated to be transferred $ 57,611 $ 121,556 Current assets $ 16,489 $ 35,188 Property and equipment 30,649 44,140 Other assets 1,972 4 Identifiable intangible assets 8,327 24,987 Current liabilities (7,349 ) (24,633 ) Deferred tax liabilities, net (13,267 ) (4,912 ) Other long-term liabilities (5,326 ) (5,606 ) Non-controlling interests — 747 Total identifiable net assets 31,495 69,915 Goodwill 26,116 51,641 $ 57,611 $ 121,556 The fair value of current assets acquired in 2016 included accounts receivable with a fair value of $10.2 million. The fair value of current assets acquired in 2015 included accounts receivable with a fair value of $20.6 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 2016 and 2015 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 2016 acquisitions, goodwill of $5.8 million was recorded for the businesses acquired that were included within Quanta’s Electric Power Infrastructure Services Division and $20.3 million was recorded for the business acquired that was included within Quanta’s Oil and Gas Infrastructure Services Division on the dates of acquisition. In connection with the 2015 acquisitions, goodwill of $31.2 million was recorded for the businesses acquired that were included within Quanta’s Electric Power Infrastructure Services Division and $20.4 million was recorded for businesses included within Quanta’s Oil and Gas Infrastructure Services Division on the dates of acquisition. Goodwill of approximately $0.4 million is expected to be deductible for income tax purposes related to the businesses acquired in the first six months of 2016, and goodwill of approximately $33.9 million is expected to be deductible for income tax purposes related to the businesses acquired in 2015. 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 2016 acquisitions (in thousands, except for weighted average amortization periods, which are in years). Estimated Weighted Average Customer relationships $ 4,814 3.3 Backlog 822 3.1 Trade names 2,448 15.0 Non-compete agreements 243 5.0 Total intangible assets subject to amortization acquired in 2016 acquisitions $ 8,327 6.8 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): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues $ 1,792,430 $ 1,916,000 $ 3,513,472 $ 3,835,457 Gross profit $ 200,217 $ 235,282 $ 403,682 $ 484,237 Selling, general and administrative expenses $ 156,607 $ 154,023 $ 315,817 $ 305,998 Amortization of intangible assets $ 8,141 $ 9,910 $ 15,792 $ 19,648 Net income from continuing operations $ 16,729 $ 37,053 $ 37,069 $ 91,347 Net income from continuing operations attributable to common stock $ 16,562 $ 33,597 $ 36,539 $ 83,190 Earnings per share from continuing operations attributable to common stock — basic and diluted $ 0.11 $ 0.16 $ 0.23 $ 0.39 The pro forma combined results of operations for the three and six months ended June 30, 2016 and 2015 have been prepared by adjusting the historical results of Quanta to include the historical results of the 2016 acquisitions as if they occurred January 1, 2015. The pro forma combined results of operations for the three and six months ended June 30, 2015 have also been prepared by adjusting the historical results of Quanta to include the historical results of the 2015 acquisitions as if they occurred January 1, 2014. These pro forma combined historical results were also adjusted for the following: a reduction of interest expense as a result of the repayment of outstanding indebtedness of the acquired businesses, 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 2016 and 2015 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 exchangeable shares 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 2016 and 2015 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 $18.9 million and income before taxes of approximately $1.5 million were included in Quanta’s consolidated results of operations for the three months ended June 30, 2016 related to the three 2016 acquisitions following their respective dates of acquisition. Revenues of approximately $24.5 million and a loss before taxes of approximately $1.0 million were included in Quanta’s consolidated results of operations for the six months ended June 30, 2016 related to the three 2016 acquisitions following their respective dates of acquisition. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
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 Power Division Oil and Gas Division Total Balance at December 31, 2015: Goodwill $ 1,226,245 $ 366,306 $ 1,592,551 Accumulated impairment — (39,893 ) (39,893 ) 1,226,245 326,413 1,552,658 Goodwill acquired during 2016 5,829 20,287 26,116 Purchase price allocation adjustments (1) — (214 ) (214 ) Foreign currency translation adjustments 10,702 6,293 16,995 Balance at June 30, 2016: Goodwill 1,242,776 392,964 1,635,740 Accumulated impairment — (40,185 ) (40,185 ) $ 1,242,776 $ 352,779 $ 1,595,555 (1) Adjustments represent changes in deferred tax liability estimates and would have had no impact on the consolidated financial statements in prior periods had these adjustments been booked at the respective acquisition dates. As described in Note 2, Quanta’s operating units are organized into one of Quanta’s two internal divisions and, accordingly, the goodwill associated with 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 and are based on the predominant type of work performed by each operating unit. From time to time, operating units may be reorganized between these internal divisions 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 June 30, 2016 December 31, 2015 June 30, 2016 Intangible Assets Accumulated Amortization Intangible Assets, Net Intangible Assets Accumulated Amortization Intangible Assets, Net Remaining Customer relationships $ 247,198 $ (101,744 ) $ 145,454 $ 236,731 $ (90,840 ) $ 145,891 9.1 Backlog 133,623 (131,086 ) 2,537 130,818 (126,954 ) 3,864 0.8 Trade names 54,547 (11,313 ) 43,234 51,192 (9,525 ) 41,667 18.0 Non-compete agreements 29,280 (24,890 ) 4,390 28,560 (23,507 ) 5,053 3.3 Patented rights and developed technology 22,497 (14,856 ) 7,641 22,447 (13,848 ) 8,599 4.5 Total intangible assets subject to amortization $ 487,145 $ (283,889 ) $ 203,256 $ 469,748 $ (264,674 ) $ 205,074 10.6 Amortization expense for intangible assets was $8.1 million and $8.7 million for the three months ended June 30, 2016 and 2015 and $15.6 million and $17.0 million for the six months ended June 30, 2016 and 2015. The estimated future aggregate amortization expense of intangible assets subject to amortization as of June 30, 2016 is set forth below (in thousands): For the Fiscal Year Ending December 31, Remainder of 2016 $ 15,288 2017 25,203 2018 24,394 2019 22,363 2020 21,046 Thereafter 94,962 Total $ 203,256 |
Per Share Information
Per Share Information | 6 Months Ended |
Jun. 30, 2016 | |
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 three and six months ended June 30, 2016 and 2015 are illustrated below (in thousands): Three Months Ended Six Months Ended June 30, 2016 2015 2016 2015 Amounts attributable to common stock: Net income from continuing operations $ 16,562 $ 32,007 $ 37,058 $ 79,696 Net income from discontinued operations — 14,102 — 19,897 Net income attributable to common stock $ 16,562 $ 46,109 $ 37,058 $ 99,593 Weighted average shares: Weighted average shares outstanding for basic earnings per share 156,128 213,047 159,577 214,257 Effect of dilutive stock options 2 12 2 12 Weighted average shares outstanding for diluted earnings per share 156,130 213,059 159,579 214,269 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 9), 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 three and six months ended June 30, 2016 and 2015. Weighted average shares outstanding for basic and diluted earnings per share for the three and six months ended June 30, 2016 were reduced by the additional shares received in settlement of Quanta’s accelerated share repurchase arrangement (as further described in Note 9) as of April 12, 2016. |
Debt Obligations
Debt Obligations | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Obligations | 8. DEBT OBLIGATIONS: Quanta’s long-term debt obligations consisted of the following (in thousands): June 30, December 31, Borrowings under credit facility $ 398,028 $ 466,850 Other long-term debt, interest rates ranging from 3.5% to 4.3% 3,917 5,401 Capital leases, interest rates ranging from 2.5% to 6.2% 4,777 5,351 Total long-term debt obligations 406,722 477,602 Less — Current maturities of long-term debt 5,603 2,238 Total long-term debt obligations, net of current maturities $ 401,119 $ 475,364 Quanta’s current maturities of long-term debt and short-term borrowings consisted of the following (in thousands): June 30, December 31, Short-term borrowings $ — $ 4,829 Current maturities of long-term debt 5,603 2,238 Current maturities of long-term debt and short-term borrowings $ 5,603 $ 7,067 Credit Facility On December 18, 2015, Quanta entered into an amended and restated credit agreement with various lenders that provides for a $1.81 billion senior secured revolving credit facility maturing on December 18, 2020. The entire amount available under the facility may be used by Quanta for revolving loans and letters of credit in U.S. dollars and certain alternative currencies. Up to $600.0 million of the facility may be used by certain subsidiaries of Quanta for revolving loans and letters of credit in certain alternative currencies. Up to $100.0 million of the facility may be used for swing line loans in U.S. dollars, up to $50.0 million of the facility may be used for swing line loans in Canadian dollars and up to $30.0 million of the facility may be used for swing line loans 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 $400.0 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 June 30, 2016, Quanta had approximately $317.3 million of outstanding letters of credit and bank guarantees, $217.6 million of which were denominated in U.S. dollars and $99.7 million of which were denominated in Australian or Canadian dollars. Quanta also had $398.0 million of outstanding revolving loans under the credit facility, $300.0 million of which were denominated in U.S. dollars and $98.0 million of which were denominated in Canadian dollars. The remaining $1.09 billion was available for revolving loans or issuing new letters of credit or bank guarantees. Information on borrowings under Quanta’s credit facility and the applicable interest rates during the three and six months ended June 30, 2016 and 2015 is as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2016 2015 2016 2015 Maximum amount outstanding during the period $ 465,599 $ 330,473 $ 518,607 $ 330,473 Average daily amount outstanding under the credit facility $ 426,172 $ 171,638 $ 449,101 $ 132,213 Weighted-average interest rate 2.17 % 2.01 % 2.08 % 2.13 % Under the current credit agreement, amounts borrowed 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. 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 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 $100.0 million of availability under the credit agreement and/or cash and cash equivalents on hand. As of June 30, 2016, 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 of Quanta’s other debt instruments exceeding $100.0 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. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Equity | 9. 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 the 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 holders of exchangeable shares associated with the Preferred Stock have 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. As of June 30, 2016, both shares of the Preferred Stock remained outstanding and 6,876,042 exchangeable shares remained outstanding, of which 3,949,929 were associated with the Preferred Stock. Treasury Stock Under the stock incentive plans described in Note 10, 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 352,061 and 345,083 shares of Quanta common stock during the six months ended June 30, 2016 and 2015, with a total market value of $7.2 million and $9.9 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 (the 2013 Repurchase Program). During the nine months ended September 30, 2015, Quanta repurchased 14.3 million shares of its common stock at a cost of $406.5 million in the open market under the 2013 Repurchase Program and completed the 2013 Repurchase Program. During the third quarter of 2015, Quanta’s board of directors approved a new stock repurchase program authorizing Quanta to purchase, from time to time through February 28, 2017, up to $1.25 billion of its outstanding common stock (the 2015 Repurchase Program). Repurchases under the 2015 Repurchase Program can be made in open market or privately negotiated transactions, including pursuant to an accelerated share repurchase arrangement, an issuer repurchase plan or otherwise, at management’s discretion, based on market and business conditions, applicable contractual and legal requirements and other factors. The 2015 Repurchase Program does not obligate Quanta to acquire any specific amount of common stock and may be modified or terminated by Quanta’s board of directors at any time at its sole discretion and without notice. During the third and fourth quarters of 2015, Quanta repurchased 19.2 million shares of its common stock at a cost of $449.9 million in the open market under the 2015 Repurchase Program. Also during the third quarter of 2015, Quanta entered into an accelerated share repurchase arrangement (the ASR) to repurchase $750.0 million of its common stock under the 2015 Repurchase Program. Under the terms of the ASR, Quanta paid $750.0 million to JPMorgan Chase Bank, National Association, London Branch (JPMorgan) and initially received 25.7 million shares of its common stock. The fair market value of these 25.7 million shares at the time of delivery was approximately $600.0 million, and the repurchased shares and the related cost to acquire them were accounted for as an adjustment to the balance of treasury stock during the quarter ended September 30, 2015, reducing the weighted-average number of basic and diluted common shares used to calculate Quanta’s earnings per share. The $150.0 million remaining under the ASR was recorded as an adjustment to additional paid-in capital (APIC) during the quarter ended September 30, 2015 and was reclassified from APIC to treasury stock on April 12, 2016 as a result of the final settlement of the ASR. On April 12, 2016, upon final settlement of the ASR and based on the final volume-weighted average share price during the term of the ASR, minus a discount and subject to other adjustments pursuant to the terms and conditions of the ASR, Quanta received 9.4 million additional shares of its common stock from JPMorgan. As of April 12, 2016, after final settlement of the ASR, Quanta had repurchased 54.3 million shares of its common stock at a cost of $1.20 billion under the 2015 Repurchase Program, and approximately $50.1 million remained available under the 2015 Repurchase Program. Non-controlling Interests Quanta holds investments in several joint ventures that provide infrastructure services under specific customer contracts. Quanta has determined that certain of these joint ventures are VIEs, 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 the joint ventures determined to be VIEs 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 condensed consolidated financial statements. Income attributable to the other joint venture members in the amounts of $0.2 million and $3.5 million for the three months ended June 30, 2016 and 2015 and $0.5 million and $8.2 million for the six months ended June 30, 2016 and 2015 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 VIEs was approximately $2.9 million and $2.3 million at June 30, 2016 and December 31, 2015. The carrying value of investments held by the non-controlling interests in these variable interest entities at June 30, 2016 and December 31, 2015 was $2.9 million and $2.3 million. During the three months ended June 30, 2016 and 2015, distributions to non-controlling interests were none and $2.5 million. During the six months ended June 30, 2016 and 2015, distributions to non-controlling interests were none and $5.0 million. There were no other changes in equity as a result of transfers to/from the non-controlling interests during the six months ended June 30, 2016 or 2015. See Note 11 for further disclosures related to Quanta’s joint venture arrangements. |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | 10. 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, 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. Restricted Stock and RSUs to be Settled in Common Stock During each of the three months ended June 30, 2016 and 2015, Quanta granted 0.1 million of RSUs to be settled in common stock under the Plans with weighted average grant date fair values of $23.59 and $29.96. During the six months ended June 30, 2016 and 2015, Quanta granted 1.8 million and 1.2 million of RSUs to be settled in common stock under the Plans with weighted average grant date fair values of $22.11 and $27.90. 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 each of the three months ended June 30, 2016 and 2015, vesting activity consisted of 0.1 million of shares of restricted stock and RSUs settled in common stock with an approximate fair value at the time of vesting of $1.1 million and $2.3 million. During the six months ended June 30, 2016 and 2015, vesting activity consisted of 1.3 million and 1.1 million of shares of restricted stock and RSUs settled in common stock with an approximate fair value at the time of vesting of $26.4 million and $33.8 million. During the three months ended June 30, 2016 and 2015, Quanta recognized $8.5 million and $9.0 million on non-cash stock compensation expense related to restricted stock and RSUs to be settled in common stock. During the six months ended June 30, 2016 and 2015, Quanta recognized $21.7 million and $17.8 million in non-cash stock compensation expense related to restricted stock and RSUs to be settled in common stock. As of June 30, 2016, there was approximately $44.0 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 1.97 years. Performance Units to be Settled in Common Stock Performance units awarded pursuant to the 2011 Plan 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 company financial performance targets and strategic initiatives established by the Compensation Committee. The final amount of earned and vested performance units can range from 0% to 200% of the initial amount awarded based on the level of achievement of performance goals, as determined by the Compensation Committee. During the three months ended June 30, 2016 and 2015, Quanta granted 0.1 million and no performance units to be settled in common stock under the 2011 Plan, with a weighted average grant date fair value of $24.11 for the performance units granted during the three months ended June 30, 2016. During the six months ended June 30, 2016 and 2015, Quanta granted 0.3 million and 0.2 million performance units to be settled in common stock under the 2011 Plan, with a weighted average grant date fair value of $22.86 and $28.16. 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 and is adjusted for fair value changes, so that the expense recognized for each award is equivalent to the fair value of the final number of earned and vested performance units. During the three months ended June 30, 2016 and 2015, Quanta recognized $1.0 million and $0.7 million in compensation expense associated with performance units to be settled in common stock. During the six months ended June 30, 2016 and 2015, Quanta recognized $1.5 million and $1.4 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 issued in connection with performance units, during the three and six months ended June 30, 2016 and 2015, as applicable performance periods had not yet concluded. RSUs to be Settled in Cash Certain RSUs granted by Quanta under the Plans are settled solely in cash. These cash-settled RSUs are intended to provide plan participants with cash performance incentives that are substantially equivalent to the risks and rewards of equity ownership in Quanta, 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. Additionally, subject to certain restrictions, Quanta’s non-employee directors may elect to cash settle a portion of their RSU awards, which generally vest upon conclusion of the director service year. For all RSUs settled in cash, the holders receive for each vested RSU an amount in cash equal to the fair market value on the settlement 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 $1.4 million and $1.2 million for the three months ended June 30, 2016 and 2015 and $2.9 million and $2.5 million for the six months ended June 30, 2016 and 2015. Such expense is recorded in selling, general and administrative expenses. RSUs that are anticipated to be settled in cash are not included in the calculation of earnings per share, and the estimated earned value of such RSUs is classified as a liability. Quanta paid $2.4 million and $1.6 million to settle liabilities related to cash-settled RSUs in the three months ended June 30, 2016 and 2015 and $3.4 million and $2.5 million to settle liabilities related to cash-settled RSUs in the six months ended June 30, 2016 and 2015. Accrued liabilities for the estimated earned value of outstanding RSUs to be settled in cash were $2.2 million and $2.7 million at June 30, 2016 and December 31, 2015. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. COMMITMENTS AND CONTINGENCIES: Investments in Affiliates and Other Entities As described in Note 9, 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 ratably based on the percentage ownership of 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 approximately 500 kilometers of transmission line and two 500 kV substations. Quanta will provide turnkey EPC services for the entire project. As of June 30, 2016, Quanta had made aggregate contributions to this unconsolidated affiliate of $8.4 million and had received $2.3 million as a return of capital. Also as of June 30, 2016, Quanta had outstanding additional capital commitments associated with investments in an unconsolidated affiliate related to this project as follows (in thousands): Capital Year Ending December 31 — Remainder of 2016 $ 6,852 2017 (1) 33,199 2018 — 2019 24,511 Total capital commitments associated with investments in an unconsolidated affiliate related to an EPC electrical transmission project $ 64,562 (1) A return of capital from unconsolidated affiliates of approximately $43.8 million is anticipated in August 2017 and is not included in these amounts. Additionally, as of June 30, 2016, Quanta had outstanding capital commitments associated with investments in unconsolidated affiliates related to planned oil and gas infrastructure projects of approximately $5.0 million, $0.9 million of which is expected to be paid in the third quarter of 2016. Quanta is unable to determine the exact timing of the remaining $4.1 million of these capital commitments but anticipates them to be paid by June 30, 2017. Leases Quanta leases certain land, buildings and equipment under non-cancelable lease agreements, including related party leases. 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 June 30, 2016 (in thousands): Operating Year Ending December 31 — Remainder of 2016 $ 55,908 2017 78,221 2018 56,538 2019 34,412 2020 19,433 Thereafter 26,281 Total minimum lease payments $ 270,793 Rent expense related to operating leases was approximately $58.4 million and $50.9 million for the three months ended June 30, 2016 and 2015 and approximately $114.8 million and $100.2 million for the six months ended June 30, 2016 and 2015. 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 June 30, 2016, the maximum guaranteed residual value was approximately $538.7 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 Expenditures Quanta has capital commitments for the expansion of its vehicle fleet in order to accommodate manufacturer lead times on certain types of vehicles. As of June 30, 2016, Quanta issued approximately $3.6 million of production orders with expected delivery dates in 2016. Although Quanta has committed to purchase these vehicles at the time of their delivery, Quanta anticipates 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. Lorenzo Benton v. Telecom Network Specialists, Inc., et al. Additionally, in November 2007, TNS filed cross complaints for indemnity against the staffing agencies, which employed many of the individuals in question. In December 2012, the trial court heard cross-motions for summary judgment filed by TNS and the staffing agencies pertaining to TNS’s demand for indemnity. The court denied TNS’s motion and granted the motions filed by the staffing agencies. TNS appealed the court’s ruling, and in April 2015, the California Appellate Court reversed the trial court’s decision, vacated its award of attorneys’ fees, and instructed the trial court to reconsider its earlier ruling on TNS’s indemnity claims. 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. SEC Notice. For additional information regarding other pending legal proceedings, see Collective Bargaining Agreements 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 investments, 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 and 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. At June 30, 2016 and December 31, 2015, one customer accounted for approximately 18% and 12% of Quanta’s consolidated net position. The services provided to this customer related primarily to Quanta’s Electric Power Infrastructure Services segment. No customers represented 10% or more of Quanta’s revenues for the three and six months ended June 30, 2016 and 2015, and no other customers represented 10% or more of Quanta’s consolidated net position as of June 30, 2016 or December 31, 2015. Self-Insurance As discussed in Note 2, Quanta is insured for employer’s liability, group health, general liability, auto liability and workers’ compensation claims. As of June 30, 2016 and December 31, 2015, the gross amount accrued for insurance claims totaled $212.9 million and $209.0 million with $158.2 million and $153.5 million considered to be long-term and included in other non-current liabilities. Related insurance recoveries/receivables as of June 30, 2016 and December 31, 2015 were $9.2 million and $8.6 million, of which $0.6 million and $0.6 million were included in prepaid expenses and other current assets and $8.6 million and $8.0 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 June 30, 2016, Quanta had $317.3 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 2016 and 2017. 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 June 30, 2016, the total amount of the outstanding performance bonds was estimated to be approximately $2.7 billion. Quanta’s estimated maximum exposure as it relates to the value of the performance 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 $667 million as of June 30, 2016. Additionally, from time to time, Quanta 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 multiemployer pension plans and employee benefit trusts. Quanta’s multiemployer 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 multiemployer pension plan contribution obligation for future periods. The Pension Protection Act of 2006 (PPA) also added special funding and operational rules generally applicable to plan years beginning after 2007 for multiemployer plans 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 multiemployer defined benefit pension plans. For example, the Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980, imposes certain liabilities upon an employer who is a contributor to a multiemployer pension plan if the employer withdraws 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 multiemployer defined benefit pension plans. 2011 Central States Plan Withdrawal Liability. In connection with the partial withdrawal in 2011, Quanta recorded a withdrawal liability of approximately $32.6 million in the fourth quarter of 2011 based on estimates received from the Central States Plan. The Central States Plan subsequently asserted that the withdrawal of the PLCA members, and thus Quanta’s partial withdrawal, was not effective in 2011. The PLCA and Quanta believed at that time that a legally effective withdrawal had occurred during the fourth quarter of 2011, and this issue was litigated in the federal district court for the Northern District of Illinois, Eastern Division. In September 2013, the district court ruled in favor of the Central States Plan, and that decision was appealed by the PLCA. In July 2014, the Central States Plan provided Quanta with a Notice and Demand claiming partial withdrawal liability in the amount of $39.6 million and requiring Quanta to make payments on this assessment while the dispute is ongoing. In September 2015, the United States Court of Appeals for the Seventh Circuit ruled in favor of the PLCA and reversed the district court’s previous ruling which had been in favor of the Central States Plan. Based on the outcome of the appeal, in January 2016, the Central States Plan issued a revised Notice and Demand claiming partial withdrawal liability in the amount of $32.9 million. Separately, in December 2013, the Central States Plan filed lawsuits against two of Quanta’s other subsidiaries in connection with their withdrawal in 2012. In the first lawsuit, the Central States Plan alleged that the subsidiary elected to participate in the Central States Plan pursuant to the collective bargaining agreement under which it participated. Quanta argued that no such election was made and that any payments made to the Central States Plan were made in error. In July 2014, the parties reached an agreement to settle the lawsuit, and the court dismissed the case with prejudice. In the second lawsuit, the Central States Plan alleged that contributions made by the Quanta subsidiary to a new industry fund created after Quanta withdrew from the Central States Plan should have been made to the Central States Plan. This arguably would have extended the withdrawal date for this subsidiary to at least the end of 2013. Quanta disputed these allegations on the basis that it properly paid contributions to the new industry fund based on the terms of the collective bargaining agreement under which it participated and asserted that it terminated its obligation to contribute to the Central States Plan by the end of 2012. The parties both moved for summary judgment, and in March 2015, the court entered judgment in favor of Quanta. The Central States Plan filed a notice of appeal in April 2015, and in December 2015, the Central States Plan agreed to dismiss the appeal with prejudice. 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. In March 2014, the Central States Plan provided revised estimates indicating that the total withdrawal liability based on certain withdrawal scenarios from 2011 through 2014 could range between $40.1 million and $55.4 million, which Quanta believes to be the range of reasonably possible loss for this matter. Additionally, based on those estimates and allowing for the exclusion of amounts believed by management to have been improperly included in such estimates, 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. 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 expense Quanta had recognized through June 30, 2016. Although Quanta disputes the total liability owed to the Central States Plan, it continues to make monthly payments according to the terms of the January 2016 Notice and Demand while the parties determine the final withdrawal liability. As of June 30, 2016, Quanta had made payments totaling $13.7 million toward the withdrawal liability assessment. 2013 Central States Plan Withdrawal Liability. The final amount of withdrawal liability payable in connection with this matter remains the subject of a pending arbitration proceeding and will ultimately depend on various factors, including the outcome of the PLCA litigation described above. However, 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. Additionally, in connection with certain acquisitions and dispositions, Quanta has indemnified various parties against specified liabilities that those parties might incur in the future. The indemnities under acquisition or disposition agreements are usually contingent upon the other party incurring liabilities that reach specified thresholds. As of June 30, 2016, except as otherwise set forth above in Legal Proceedings 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. However, the indemnities may not cover all of Quanta’s exposure for such pre-acquisition matters and the indemnitors may be unwilling or unable to pay the amounts owed to Quanta. Accordingly, Quanta may incur expenses for which it is not reimbursed. Quanta is currently 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. As of June 30, 2016, Quanta recorded $11.4 million as its best estimate of the pre-acquisition tax obligations and a corresponding indemnification asset, as management expects to recover from the indemnity counterparties any amounts that Quanta may be required to pay in connection with any such obligations. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 12. SEGMENT INFORMATION: Quanta presents its operations under two reportable segments: (1) Electric Power Infrastructure Services and (2) Oil and Gas Infrastructure Services. 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 two internal divisions, namely, the Electric Power Infrastructure Services Division and the Oil and Gas Infrastructure Services 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 of shared and indirect costs, such as facility costs and 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 intangible assets are not allocated. Summarized financial information for Quanta’s reportable segments is presented in the following table (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues: Electric Power Infrastructure Services $ 1,159,087 $ 1,222,324 $ 2,346,089 $ 2,462,616 Oil and Gas Infrastructure Services 633,343 650,016 1,160,078 1,271,110 Consolidated $ 1,792,430 $ 1,872,340 $ 3,506,167 $ 3,733,726 Operating income (loss): Electric Power Infrastructure Services $ 75,934 $ 88,027 $ 163,258 $ 197,019 Oil and Gas Infrastructure Services 11,899 35,981 17,740 60,128 Corporate and non-allocated costs (52,364 ) (55,157 ) (108,235 ) (104,146 ) Consolidated $ 35,469 $ 68,851 $ 72,763 $ 153,001 Depreciation: Electric Power Infrastructure Services $ 22,937 $ 22,072 $ 45,882 $ 42,989 Oil and Gas Infrastructure Services 17,254 16,783 33,055 33,252 Corporate and non-allocated costs 2,568 2,175 4,992 4,187 Consolidated $ 42,759 $ 41,030 $ 83,929 $ 80,428 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, and are used on an interchangeable basis across its reportable segments. As such, for reporting purposes, total depreciation expense is allocated each quarter among Quanta’s reportable segments based on the ratio of each reportable segment’s revenue contribution to consolidated revenues. Foreign Operations During the three months ended June 30, 2016 and 2015, Quanta derived $335.6 million and $359.2 million of its revenues from foreign operations. During the six months ended June 30, 2016 and 2015, Quanta derived $688.0 million and $892.7 million of its revenues from foreign operations. Of Quanta’s foreign revenues, approximately 67% and 84% was earned in Canada during the three months ended June 30, 2016 and 2015 and approximately 73% and 86% was earned in Canada during the six months ended June 30, 2016 and 2015. In addition, Quanta held property and equipment of $334.1 million and $317.6 million in foreign countries, primarily Canada, as of June 30, 2016 and December 31, 2015. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. SUBSEQUENT EVENTS: Acquisitions During the third quarter of 2016, Quanta has completed two acquisitions. Quanta acquired an electrical infrastructure services company located in Australia and a utility contracting company located in Canada. The results of these businesses will generally be included in Quanta’s Electric Power Infrastructure Services segment. The aggregate consideration paid or payable for these acquisitions was approximately $34.3 million, subject to certain adjustments and certain contingent consideration payments of up to $4.5 million, which may be paid if certain financial targets are achieved. At Quanta’s election, a portion of the consideration and any contingent consideration may include shares of Quanta common stock. As these transactions were closed during the third quarter of 2016, 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 infrastructure service offerings in Australia and Canada. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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. |
Interim Condensed Consolidated Financial Information | Interim Condensed Consolidated Financial Information These unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (US GAAP), have been condensed or omitted pursuant to those rules and regulations. Quanta believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income and cash flows with respect to the interim condensed consolidated financial statements have been included. The results of operations and comprehensive income for the interim periods are not necessarily indicative of the results for the entire fiscal year. The results of Quanta have historically been subject to significant seasonal fluctuations. Quanta recommends that these unaudited condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto of Quanta and its subsidiaries included in Quanta’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC on February 29, 2016. |
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, multiemployer pension plan withdrawal liabilities, revenue recognition for construction contracts inclusive of contractual change orders and claims, 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 $162.3 million and $128.8 million as of June 30, 2016 and December 31, 2015. 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 June 30, 2016 and December 31, 2015, cash equivalents were $5.7 million and $1.4 million, and consisted primarily of money market investments and money market mutual funds and are discussed further in Fair Value Measurements |
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 June 30, 2016 and December 31, 2015, Quanta had allowances for doubtful accounts on current receivables of approximately $2.7 million and $5.2 million. Long-term accounts receivable are included within other assets, net on the consolidated balance sheets. 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 June 30, 2016 and December 31, 2015 were approximately $221.0 million and $250.1 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 June 30, 2016 and December 31, 2015 were $4.4 million and $4.5 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 June 30, 2016 and December 31, 2015, the balances of unbilled receivables included in accounts receivable were approximately $228.0 million and $233.6 million. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Quanta has recorded goodwill in connection with its historical acquisitions of companies. Upon acquisition, these companies were 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 two internal divisions: the Electric Power Infrastructure Services Division and the Oil and Gas Infrastructure Services 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 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. 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 2015, 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. Step one of the analysis indicated that the implied fair value of each of Quanta’s reporting units, other than recently acquired reporting units and two other reporting units described below, was substantially in excess of its carrying value. After performing step two of the analysis, management concluded that goodwill was impaired at two reporting units in Quanta’s Oil and Gas Infrastructure Services Division. Accordingly, during the fourth quarter of 2015, Quanta recorded a $39.8 million non-cash charge for the impairment of goodwill which primarily resulted from lower forecasted oil and gas services revenues for its Gulf of Mexico operations and certain operations in Australia, due to the extended low commodity price environment. As discussed generally above, when evaluating the 2015 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. After giving consideration to a 10% decrease in the fair value of each of Quanta’s reporting units, the results of the assessment at December 31, 2015 did not change. However, circumstances such as market declines, unfavorable economic conditions, the loss of a major customer or other factors could increase the risk of impairment of goodwill in future periods. If an operating unit experiences prolonged periods of declining revenues, operating margins or both, it may be at risk of failing step one of the goodwill impairment test. Certain operating units have experienced declines over the short-term due to challenging macroeconomic conditions in certain geographic areas, the decline in oil prices which has negatively impacted customer spending, project delays and constrained customer capital spending as a result of an increasingly complex regulatory and permitting environment. Certain operating units within our Oil and Gas Infrastructure Services segment that primarily operate within the midstream and smaller-scale transmission market have continued to be negatively impacted by these factors. While no interim impairment charges were recorded during the six months ended June 30, 2016, Quanta will continue to monitor these conditions and others to determine if it is necessary to perform step one of the fair-value based impairment test for one or more operating units prior to the annual impairment assessment. Quanta’s intangible assets include customer relationships, backlog, trade names, non-compete agreements, patented rights and developed technology, all 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 and estimated customer attrition rates, 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. During the fourth quarter of 2015, Quanta recorded an impairment charge of $12.1 million related to customer relationships, trade names and non-compete agreement intangible assets. These intangible asset impairments primarily resulted from lower forecasted oil and gas services revenues for Quanta’s Gulf of Mexico operations and certain operations in Australia, due to the extended low commodity price environment. The two reporting units impacted also had related goodwill impairments, as discussed above, and are in Quanta’s Oil and Gas Infrastructure Services Division. |
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 or profit participation. These investments may also include Quanta’s participation in different financing structures such as the extension of loans to project specific entities, the acquisition of convertible notes issued by project specific entities, or other strategic financing arrangements. Quanta 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 related to investments 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. |
Revenue Recognition | Revenue Recognition 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. Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors including unforeseen circumstances not included in our cost estimates or covered by our contracts for which we cannot obtain adequate compensation, including concealed or unknown environmental conditions; changes in the cost of equipment, commodities, materials or labor; unanticipated costs or claims due to customer-caused delays, customer failure to provide required materials or equipment, errors in engineering, specifications or designs, project modifications, or contract termination and our inability to obtain reimbursement for such costs or recover on such claims; weather conditions; and quality issues requiring rework or replacement. These factors, along with other risks inherent in performing fixed price contracts may cause actual revenues and gross profits for a project to differ from previous estimates and could result in reduced profitability or losses on projects. 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. During the six months ended June 30, 2016, Quanta experienced performance issues on an ongoing power plant project in Alaska that resulted in the revision of its estimate of total costs necessary to complete this project. During the first six months of 2016 and as the project was planned to transition from final construction and testing to the commissioning phase, the project was negatively impacted by further third party engineering deficiencies that caused changes to Quanta’s planned scope of work and by performance failures by other contractors operating onsite. These issues resulted in higher than expected production costs and a related impact on production sequencing. In addition to these items, late in the second quarter of 2016 Quanta also experienced a claimed force majeure event which disrupted the project and Quanta provided the customer and its insurance providers with a notice of force majeure in order to seek schedule relief and cost recovery from disruptions. Quanta is also in the process of developing potential claims for damages that may have resulted from the third party engineering and other contractor performance issues; however, no revenues or cost recovery have been reflected in Quanta’s estimate of total project losses at June 30, 2016. The increase in estimated costs resulted in the recognition of a project loss of $30.5 million during the three months ended June 30, 2016. Project losses were $51.8 million during the six months ended June 30, 2016. At June 30, 2016, this project had a contract value of $201 million and was approximately 90% complete. This project is expected to be substantially completed near the end of the third quarter of 2016. As this project continues through the final construction and commissioning phases, it is possible that additional performance issues or other unforeseen circumstances could occur and result in the recognition of additional losses on this project; however, such amounts cannot currently be estimated. Quanta’s operating results for the three and six months ended June 30, 2016 were negatively impacted by 9.2% and 6.7% as a result of aggregate changes in contract estimates related to projects that were in progress at December 31, 2015. Operating results for the three and six months ended June 30, 2016 included losses from the power plant construction project in Alaska mentioned above, offset by numerous individually immaterial changes in project profitability generally due to better than expected performance for projects that were ongoing at year-end. Quanta’s operating results for the three and six months ended June 30, 2015 were impacted by less than 5% as a result of aggregate changes in contract estimates related to projects that were in progress at December 31, 2014. Operating results for the three and six months ended June 30, 2015 included losses of $31.8 million and $48.2 million related to three projects as a result of increased costs associated with performance and site related factors that adversely impacted production. These projects included the ongoing power plant construction project in Alaska, an electric transmission project in Canada that was substantially completed in the third quarter of 2015, and a directional drilling project in Canada that was substantially completed in the fourth quarter of 2015. Operating results for the three and six months ended June 30, 2015 were impacted by positive changes in estimates of $8.5 million and $21.0 million as a result of better than expected performance on an electric transmission project in the United States that was substantially completed in the second quarter of 2015. 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 June 30, 2016 and December 31, 2015, Quanta had approximately $106.0 million and $137.2 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. 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; however, such amounts cannot currently be estimated. |
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 June 30, 2016, the total amount of unrecognized tax benefits relating to uncertain tax positions was $57.9 million, an increase from December 31, 2015 of $3.4 million. This increase in unrecognized tax benefits resulted primarily from a $1.9 million increase due to tax positions expected to be taken for 2016 and a $1.9 million increase due to tax positions of an acquired company taken in periods prior to the acquisition. Quanta is currently under examination by the Internal Revenue Service (IRS) for tax years 2010, 2011 and 2012, and the federal statute of limitations for examination of all subsequent years remains open. 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 $25.9 million as a result of settlement of these examinations or as a result of the expiration of certain statute of limitations periods. U.S. federal and state and foreign 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 are $10.0 million per occurrence, the deductible for workers’ compensation is $5.0 million per occurrence, and the deductible for employer’s liability is $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 $400,000 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 multiemployer pension plans and employee benefit trusts. Quanta’s multiemployer 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 multiemployer 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 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, 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 time-based RSU and performance unit 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 RSU awards is recognized using the graded vesting method over the requisite service period. 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 or may settle in cash, is recognized based on a remeasurement of the fair value of the award at the end of each reporting period. Upon settlement, the holders receive for each RSU an amount in cash equal to the fair market value on the settlement date of one share of Quanta common stock, as specified in the applicable award agreement. For additional information on Quanta’s restricted stock, RSUs and performance unit awards, see Note 10. |
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. 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 and cash flows are translated at average monthly rates, while balance sheets are translated at month-end exchange rates. The translation of the balance sheet results in translation gains or losses, 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. |
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) 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 11. |
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 June 30, 2016 and December 31, 2015, 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. In accordance with its annual impairment test during the quarter ended December 31, 2015, the carrying amounts of such assets, including goodwill, were compared to their fair values. The level of inputs used for these fair value measurements is the lowest level (Level 3). Quanta uses the assistance of third party specialists to develop valuation assumptions. Quanta believes that these valuation methods appropriately represent the methods that would be used by other market participants in determining fair value. 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 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 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 adopted this guidance effective January 1, 2016, and the adoption of the update did not have a significant impact on Quanta’s consolidated financial statements or related disclosures. In April 2015, the FASB issued an update that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts and premiums. The update is required to be adopted retroactively for all periods presented. In August 2015, the FASB issued another update that states that the Securities Exchange Commission (SEC) staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Quanta adopted this guidance effective January 1, 2016, and the adoption of the update did not have a significant impact on Quanta’s consolidated financial statements or related disclosures. In April 2015, the FASB issued an update that provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. An entity can elect to adopt the amendments either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. Quanta adopted this guidance effective January 1, 2016, and the adoption of the update did not have a significant impact on Quanta’s consolidated financial statements or related disclosures. In September 2015, the FASB issued an update that requires an acquiring company to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which such adjustments are determined. An acquiring company must record any effect on earnings from changes in depreciation or amortization or other income effects, calculated as if the accounting had been completed at the acquisition date. The acquiring company must also present separately on the face of the income statement or disclose in the notes the amount recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment had been recognized as of the acquisition date. The update is required to be adopted prospectively to adjustments that occur after the effective date with earlier application permitted for financial statements that have not yet been issued. Quanta adopted this guidance effective January 1, 2016, and the adoption of the update did not have a significant impact on Quanta’s consolidated financial statements or related disclosures. |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted 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 revenues 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. In July 2015, the FASB affirmed its proposal to defer the effective date until fiscal years beginning on or after December 15, 2017. 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. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements and will adopt this guidance effective January 1, 2018. 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 any substantial doubt by Quanta about its ability to continue as a going concern, if such substantial doubt were to exist. Quanta will adopt this guidance by December 31, 2016. In July 2015, the FASB issued an update that requires inventory to be measured at the lower of either cost or net realizable value. When evidence exists that the net realizable value of inventory is lower than its cost, the difference will be recognized as a loss in earnings in the period in which it occurs. The update is required to be adopted prospectively and is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements and will adopt this guidance by January 1, 2017. In January 2016, the FASB issued an update that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The new standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for financial statements of fiscal years or interim periods that have not been previously issued. Quanta is evaluating the impact of the new standard on its consolidated financial statements and will adopt the new standard by January 1, 2018. In February 2016, the FASB issued an update that requires companies that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those assets. The new standard is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted for financial statements of fiscal years or interim periods that have not been previously issued. Quanta is evaluating the impact of the new standard on its consolidated financial statements and will adopt the new standard by January 1, 2019. In March 2016, the FASB issued an update that requires companies with share-based payments to record all of the tax effects related to such share-based payments at settlement (or expiration) through the income statement rather than through equity. It is anticipated that companies will experience increased volatility of income tax expense upon adoption of this update. This change is required to be applied prospectively to all excess tax benefits and tax deficiencies resulting from settlements after the date of the adoption of the update and is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements and will adopt this guidance by January 1, 2017. In June 2016, the FASB issued an update that will change the way companies measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The update will require companies to use an “expected loss” model for instruments measured at amortized cost and to record allowances for available-for-sale (AFS) debt securities rather than reduce the carrying amounts. The update will also require disclosure of information regarding how a company developed its allowance, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. Companies will apply this standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The new standard is effective for interim and annual reporting periods beginning after December 15, 2019, although early adoption is permitted for annual reporting periods beginning after December 15, 2018. Quanta is currently evaluating the potential impact of this authoritative guidance on its consolidated financial statements and will adopt this guidance by January 1, 2020. |
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 (the 2013 Repurchase Program). During the nine months ended September 30, 2015, Quanta repurchased 14.3 million shares of its common stock at a cost of $406.5 million in the open market under the 2013 Repurchase Program and completed the 2013 Repurchase Program. During the third quarter of 2015, Quanta’s board of directors approved a new stock repurchase program authorizing Quanta to purchase, from time to time through February 28, 2017, up to $1.25 billion of its outstanding common stock (the 2015 Repurchase Program). Repurchases under the 2015 Repurchase Program can be made in open market or privately negotiated transactions, including pursuant to an accelerated share repurchase arrangement, an issuer repurchase plan or otherwise, at management’s discretion, based on market and business conditions, applicable contractual and legal requirements and other factors. The 2015 Repurchase Program does not obligate Quanta to acquire any specific amount of common stock and may be modified or terminated by Quanta’s board of directors at any time at its sole discretion and without notice. During the third and fourth quarters of 2015, Quanta repurchased 19.2 million shares of its common stock at a cost of $449.9 million in the open market under the 2015 Repurchase Program. Also during the third quarter of 2015, Quanta entered into an accelerated share repurchase arrangement (the ASR) to repurchase $750.0 million of its common stock under the 2015 Repurchase Program. Under the terms of the ASR, Quanta paid $750.0 million to JPMorgan Chase Bank, National Association, London Branch (JPMorgan) and initially received 25.7 million shares of its common stock. The fair market value of these 25.7 million shares at the time of delivery was approximately $600.0 million, and the repurchased shares and the related cost to acquire them were accounted for as an adjustment to the balance of treasury stock during the quarter ended September 30, 2015, reducing the weighted-average number of basic and diluted common shares used to calculate Quanta’s earnings per share. The $150.0 million remaining under the ASR was recorded as an adjustment to additional paid-in capital (APIC) during the quarter ended September 30, 2015 and was reclassified from APIC to treasury stock on April 12, 2016 as a result of the final settlement of the ASR. On April 12, 2016, upon final settlement of the ASR and based on the final volume-weighted average share price during the term of the ASR, minus a discount and subject to other adjustments pursuant to the terms and conditions of the ASR, Quanta received 9.4 million additional shares of its common stock from JPMorgan. As of April 12, 2016, after final settlement of the ASR, Quanta had repurchased 54.3 million shares of its common stock at a cost of $1.20 billion under the 2015 Repurchase Program, and approximately $50.1 million remained available under the 2015 Repurchase Program. |
Segment Reporting | Quanta presents its operations under two reportable segments: (1) Electric Power Infrastructure Services and (2) Oil and Gas Infrastructure Services. 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 two internal divisions, namely, the Electric Power Infrastructure Services Division and the Oil and Gas Infrastructure Services 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 of shared and indirect costs, such as facility costs and 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 intangible assets are not allocated. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Financial Information for Discontinued Operations | The following represents a reconciliation of the major classes of line items constituting income from discontinued operations related to Quanta’s fiber optic licensing operations (in thousands): Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Major classes of line items constituting pretax income from discontinued operations: Revenues $ 25,692 $ 51,262 Expenses: Cost of services (including depreciation) 10,896 21,711 Selling, general and administrative expenses 5,106 9,881 Amortization of intangible assets 413 825 Other income (expense) items that are not major 9 10 Income before taxes of discontinued operations 9,286 18,855 Provision for income taxes related to discontinued operations (4,816 ) (1,042 ) Net income from discontinued operations as presented in the statements of operations $ 14,102 $ 19,897 The following represents a reconciliation of the carrying amounts of major classes of current liabilities of fiber optic licensing operations (in thousands): June 30, 2016 December 31, 2015 Carrying amounts of major classes of liabilities of discontinued operations: Current liabilities: Accounts payable and accrued expenses $ 2,651 $ 15,313 Total current liabilities of discontinued operations $ 2,651 $ 15,313 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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). 2016 2015 Consideration: Value of Quanta common stock and exchangeable shares issued $ — $ 10,127 Cash paid or payable 42,211 110,428 Contingent consideration 15,400 1,001 Fair value of total consideration transferred or estimated to be transferred $ 57,611 $ 121,556 Current assets $ 16,489 $ 35,188 Property and equipment 30,649 44,140 Other assets 1,972 4 Identifiable intangible assets 8,327 24,987 Current liabilities (7,349 ) (24,633 ) Deferred tax liabilities, net (13,267 ) (4,912 ) Other long-term liabilities (5,326 ) (5,606 ) Non-controlling interests — 747 Total identifiable net assets 31,495 69,915 Goodwill 26,116 51,641 $ 57,611 $ 121,556 |
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 2016 acquisitions (in thousands, except for weighted average amortization periods, which are in years). Estimated Weighted Average Customer relationships $ 4,814 3.3 Backlog 822 3.1 Trade names 2,448 15.0 Non-compete agreements 243 5.0 Total intangible assets subject to amortization acquired in 2016 acquisitions $ 8,327 6.8 |
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): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues $ 1,792,430 $ 1,916,000 $ 3,513,472 $ 3,835,457 Gross profit $ 200,217 $ 235,282 $ 403,682 $ 484,237 Selling, general and administrative expenses $ 156,607 $ 154,023 $ 315,817 $ 305,998 Amortization of intangible assets $ 8,141 $ 9,910 $ 15,792 $ 19,648 Net income from continuing operations $ 16,729 $ 37,053 $ 37,069 $ 91,347 Net income from continuing operations attributable to common stock $ 16,562 $ 33,597 $ 36,539 $ 83,190 Earnings per share from continuing operations attributable to common stock — basic and diluted $ 0.11 $ 0.16 $ 0.23 $ 0.39 |
Goodwill and Other Intangible24
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 Power Division Oil and Gas Division Total Balance at December 31, 2015: Goodwill $ 1,226,245 $ 366,306 $ 1,592,551 Accumulated impairment — (39,893 ) (39,893 ) 1,226,245 326,413 1,552,658 Goodwill acquired during 2016 5,829 20,287 26,116 Purchase price allocation adjustments (1) — (214 ) (214 ) Foreign currency translation adjustments 10,702 6,293 16,995 Balance at June 30, 2016: Goodwill 1,242,776 392,964 1,635,740 Accumulated impairment — (40,185 ) (40,185 ) $ 1,242,776 $ 352,779 $ 1,595,555 (1) Adjustments represent changes in deferred tax liability estimates and would have had no impact on the consolidated financial statements in prior periods had these adjustments been booked at the respective acquisition dates. |
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 June 30, 2016 December 31, 2015 June 30, 2016 Intangible Assets Accumulated Amortization Intangible Assets, Net Intangible Assets Accumulated Amortization Intangible Assets, Net Remaining Customer relationships $ 247,198 $ (101,744 ) $ 145,454 $ 236,731 $ (90,840 ) $ 145,891 9.1 Backlog 133,623 (131,086 ) 2,537 130,818 (126,954 ) 3,864 0.8 Trade names 54,547 (11,313 ) 43,234 51,192 (9,525 ) 41,667 18.0 Non-compete agreements 29,280 (24,890 ) 4,390 28,560 (23,507 ) 5,053 3.3 Patented rights and developed technology 22,497 (14,856 ) 7,641 22,447 (13,848 ) 8,599 4.5 Total intangible assets subject to amortization $ 487,145 $ (283,889 ) $ 203,256 $ 469,748 $ (264,674 ) $ 205,074 10.6 |
Estimated Future Aggregate Amortization Expense of Intangible Assets | The estimated future aggregate amortization expense of intangible assets subject to amortization as of June 30, 2016 is set forth below (in thousands): For the Fiscal Year Ending December 31, Remainder of 2016 $ 15,288 2017 25,203 2018 24,394 2019 22,363 2020 21,046 Thereafter 94,962 Total $ 203,256 |
Per Share Information (Tables)
Per Share Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The amounts used to compute the basic and diluted earnings per share for the three and six months ended June 30, 2016 and 2015 are illustrated below (in thousands): Three Months Ended Six Months Ended June 30, 2016 2015 2016 2015 Amounts attributable to common stock: Net income from continuing operations $ 16,562 $ 32,007 $ 37,058 $ 79,696 Net income from discontinued operations — 14,102 — 19,897 Net income attributable to common stock $ 16,562 $ 46,109 $ 37,058 $ 99,593 Weighted average shares: Weighted average shares outstanding for basic earnings per share 156,128 213,047 159,577 214,257 Effect of dilutive stock options 2 12 2 12 Weighted average shares outstanding for diluted earnings per share 156,130 213,059 159,579 214,269 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt Obligations | Quanta’s long-term debt obligations consisted of the following (in thousands): June 30, December 31, Borrowings under credit facility $ 398,028 $ 466,850 Other long-term debt, interest rates ranging from 3.5% to 4.3% 3,917 5,401 Capital leases, interest rates ranging from 2.5% to 6.2% 4,777 5,351 Total long-term debt obligations 406,722 477,602 Less — Current maturities of long-term debt 5,603 2,238 Total long-term debt obligations, net of current maturities $ 401,119 $ 475,364 |
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): June 30, December 31, Short-term borrowings $ — $ 4,829 Current maturities of long-term debt 5,603 2,238 Current maturities of long-term debt and short-term borrowings $ 5,603 $ 7,067 |
Information on Borrowings under Current and Prior Credit Facility and Applicable Interest Rates | Information on borrowings under Quanta’s credit facility and the applicable interest rates during the three and six months ended June 30, 2016 and 2015 is as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, 2016 2015 2016 2015 Maximum amount outstanding during the period $ 465,599 $ 330,473 $ 518,607 $ 330,473 Average daily amount outstanding under the credit facility $ 426,172 $ 171,638 $ 449,101 $ 132,213 Weighted-average interest rate 2.17 % 2.01 % 2.08 % 2.13 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Outstanding Capital Commitments Associated with Investments in Unconsolidated Affiliates | As of June 30, 2016, Quanta had made aggregate contributions to this unconsolidated affiliate of $8.4 million and had received $2.3 million as a return of capital. Also as of June 30, 2016, Quanta had outstanding additional capital commitments associated with investments in an unconsolidated affiliate related to this project as follows (in thousands): Capital Year Ending December 31 — Remainder of 2016 $ 6,852 2017 (1) 33,199 2018 — 2019 24,511 Total capital commitments associated with investments in an unconsolidated affiliate related to an EPC electrical transmission project $ 64,562 (1) A return of capital from unconsolidated affiliates of approximately $43.8 million is anticipated in August 2017 and is not included in these amounts. |
Minimum Lease Payments | The following schedule shows the future minimum lease payments under these leases as of June 30, 2016 (in thousands): Operating Year Ending December 31 — Remainder of 2016 $ 55,908 2017 78,221 2018 56,538 2019 34,412 2020 19,433 Thereafter 26,281 Total minimum lease payments $ 270,793 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Summarized Financial Information | Summarized financial information for Quanta’s reportable segments is presented in the following table (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues: Electric Power Infrastructure Services $ 1,159,087 $ 1,222,324 $ 2,346,089 $ 2,462,616 Oil and Gas Infrastructure Services 633,343 650,016 1,160,078 1,271,110 Consolidated $ 1,792,430 $ 1,872,340 $ 3,506,167 $ 3,733,726 Operating income (loss): Electric Power Infrastructure Services $ 75,934 $ 88,027 $ 163,258 $ 197,019 Oil and Gas Infrastructure Services 11,899 35,981 17,740 60,128 Corporate and non-allocated costs (52,364 ) (55,157 ) (108,235 ) (104,146 ) Consolidated $ 35,469 $ 68,851 $ 72,763 $ 153,001 Depreciation: Electric Power Infrastructure Services $ 22,937 $ 22,072 $ 45,882 $ 42,989 Oil and Gas Infrastructure Services 17,254 16,783 33,055 33,252 Corporate and non-allocated costs 2,568 2,175 4,992 4,187 Consolidated $ 42,759 $ 41,030 $ 83,929 $ 80,428 |
Business and Organization - Add
Business and Organization - Additional Information (Detail) $ in Millions | Aug. 04, 2015USD ($) | Mar. 31, 2016Acquisition | Sep. 30, 2015USD ($) | Jun. 30, 2016Segment | Dec. 31, 2015Entity |
Organization And Description Of Business [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Acquisitions 2015 [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | 11 | ||||
Acquisitions 2015 [Member] | Electric Power Infrastructure Services Business [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | 8 | ||||
Acquisitions 2015 [Member] | Electric Power Infrastructure Services Business [Member] | United States [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | 4 | ||||
Acquisitions 2015 [Member] | Electric Power Infrastructure Services Business [Member] | Australia [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | 1 | ||||
Acquisitions 2015 [Member] | Electric Power Infrastructure Services Business [Member] | Canada [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | 3 | ||||
Acquisitions 2015 [Member] | Oil and Gas Infrastructure Services Business [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | 3 | ||||
Acquisitions 2015 [Member] | Oil and Gas Infrastructure Services Business [Member] | United States [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | 1 | ||||
Acquisitions 2015 [Member] | Oil and Gas Infrastructure Services Business [Member] | Australia [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | 1 | ||||
Acquisitions 2015 [Member] | Oil and Gas Infrastructure Services Business [Member] | Canada [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | 1 | ||||
Acquisitions 2016 [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | Acquisition | 3 | ||||
Acquisitions 2016 [Member] | Electric Power Infrastructure Services Business [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | Acquisition | 2 | ||||
Acquisitions 2016 [Member] | Electric Power Infrastructure Services Business [Member] | United States [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | Acquisition | 1 | ||||
Acquisitions 2016 [Member] | Electric Power Infrastructure Services Business [Member] | Canada [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | Acquisition | 1 | ||||
Acquisitions 2016 [Member] | Oil and Gas Infrastructure Services Business [Member] | United States [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Number of business acquisitions | Acquisition | 1 | ||||
Fiber Optic Licensing Division [Member] | |||||
Organization And Description Of Business [Line Items] | |||||
Sales price of fiber optic licensing operations | $ | $ 1,000 | ||||
Net cash proceeds from sale of fiber optic licensing operations | $ | $ 848 | ||||
Gain on sale, Net of tax | $ | $ 171 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information (Detail) | Jun. 30, 2016 |
Minimum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Equity method investment ownership | 20.00% |
Maximum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Equity method investment ownership | 50.00% |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Cash and Cash Equivalents) - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | $ 162,344 | $ 155,315 | $ 128,771 | $ 65,427 | $ 135,534 | $ 190,515 |
Cash equivalents | 5,700 | 1,400 | ||||
Investments in Joint Ventures [Member] | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 17,800 | 24,900 | ||||
Domestic Joint Ventures [Member] | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 13,400 | 11,900 | ||||
Domestic Bank Accounts [Member] | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 13,400 | 16,100 | ||||
Foreign Bank Accounts [Member] | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | $ 148,900 | $ 112,700 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Current and Long-Term Accounts and Notes Receivable and Allowance for Doubtful Accounts) - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | ||
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 | $ 2,719 | $ 5,226 |
Current retainage balances | 221,000 | 250,100 |
Non-current retainage balances | 4,400 | 4,500 |
Unbilled receivables | $ 228,000 | $ 233,600 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Goodwill and Other Intangibles) - Additional Information (Detail) | 3 Months Ended | 6 Months Ended |
Dec. 31, 2015USD ($)Reporting_Unit | Jun. 30, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Non-cash charge for impairment of goodwill | $ 39,800,000 | $ 0 |
Decrease in fair value of reporting units considered for impairment calculation | 10.00% | |
Intangible asset impairment charges | $ 12,100,000 | |
Number of reporting units impacted impairment charge | Reporting_Unit | 2 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Revenue Recognition) - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)Project | Jun. 30, 2015USD ($)Project | Jun. 30, 2016USD ($)Project | Jun. 30, 2015USD ($)Project | Dec. 31, 2015USD ($) | |
Revenue recognized for current period losses [Line Items] | |||||
Loss on Contracts | $ 30,500,000 | $ 31,800,000 | $ 51,800,000 | $ 48,200,000 | |
Contract value of project | $ 201,000,000 | $ 201,000,000 | |||
Project completion percentage | 90.00% | 90.00% | |||
Revenues | $ 1,792,430,000 | $ 1,872,340,000 | $ 3,506,167,000 | $ 3,733,726,000 | |
Percent change in contract estimates impact on operating results is less than this percentage | 5.00% | 5.00% | |||
Decrease in operating results due to change in contract estimates, percentage | 9.20% | 6.70% | |||
Change in contract estimates impact on operating results value gains identified that offset against losses disclosed | $ 8,500,000 | $ 21,000,000 | |||
Number of projects with significant losses | Project | 1 | 3 | 1 | 3 | |
Change orders and/or claims | $ 106,000,000 | $ 106,000,000 | $ 137,200,000 | ||
Alaska Power Plant Construction Project [Member] | |||||
Revenue recognized for current period losses [Line Items] | |||||
Revenues | $ 0 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Income Taxes) - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Income Tax Contingency [Line Items] | |
Total amount of unrecognized tax benefits relating to uncertain tax positions | $ 57,900,000 |
Amount of unrecognized tax benefits change from year end relating to uncertain tax positions | 3,400,000 |
Unrecognized tax benefits, increase resulting from current period tax positions | 1,900,000 |
Unrecognized tax benefits, increase due to tax positions taken in prior period | 1,900,000 |
Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | $ 25,900,000 |
Tax Year 2010 [Member] | |
Income Tax Contingency [Line Items] | |
Income Tax Examination, Year under Examination | 2,010 |
Tax Year 2011 [Member] | |
Income Tax Contingency [Line Items] | |
Income Tax Examination, Year under Examination | 2,011 |
Tax Year 2012 [Member] | |
Income Tax Contingency [Line Items] | |
Income Tax Examination, Year under Examination | 2,012 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Self-Insurance) - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
General liability insurance claims deductible | $ 10,000,000 |
Auto liability insurance claims deductible | 10,000,000 |
Worker's compensation claims per occurrence | 5,000,000 |
Employer's liability claims subject to deductible per occurrence | 1,000,000 |
Employee health care benefit plans subject to deductible per claimant | $ 400,000 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Stock-Based Compensation) - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016shares | |
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 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - Fiber Optic Licensing Division [Member] - USD ($) | Aug. 04, 2015 | Sep. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sales price of fiber optic licensing operations | $ 1,000,000,000 | |||
Net cash proceeds from sale of fiber optic licensing operations | $ 848,000,000 | |||
Gain on disposal of discontinued operations before taxes | $ 272,000,000 | |||
Tax amount from gain loss of disposal of discontinued operations | 101,000,000 | |||
Gain on sale, Net of tax | $ 171,000,000 | |||
Assets of fiber optic licensing operations | $ 0 | $ 0 | ||
Non-current liabilities of discontinued operations | $ 0 | $ 0 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Information for Fiber Optic Licensing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Discontinued Operations, Disposed of by Sale | ||
Net income from discontinued operations as presented in the statements of operations | $ 14,102 | $ 19,897 |
Fiber Optic Licensing Division [Member] | ||
Discontinued Operations, Disposed of by Sale | ||
Revenues | 25,692 | 51,262 |
Cost of services (including depreciation) | 10,896 | 21,711 |
Selling, general and administrative expenses | 5,106 | 9,881 |
Amortization of intangible assets | 413 | 825 |
Other income (expense) items that are not major | 9 | 10 |
Income before taxes of discontinued operations | 9,286 | 18,855 |
Provision for income taxes related to discontinued operations | (4,816) | (1,042) |
Net income from discontinued operations as presented in the statements of operations | $ 14,102 | $ 19,897 |
Discontinued Operations - Recon
Discontinued Operations - Reconciliation of Carrying Amounts of Major Classes of Current Liabilities of Fiber Optic Licensing Operations (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current liabilities: | ||
Accounts payable and accrued expenses | $ 2,651 | $ 15,313 |
Total current liabilities of discontinued operations | $ 2,651 | $ 15,313 |
Acquisitions (2016 Acquisitions
Acquisitions (2016 Acquisitions) - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2016USD ($)Acquisition | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |||
Aggregate consideration for acquisitions | $ | $ 42,211 | $ 110,428 | |
Contingent consideration | $ | $ 15,400 | $ 1,001 | |
Acquisitions 2016 [Member] | |||
Business Acquisition [Line Items] | |||
Number of business acquisitions | Acquisition | 3 | ||
Aggregate consideration for acquisitions | $ | $ 42,200 | ||
Contingent consideration | $ | 15,400 | ||
Acquisitions 2016 [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Contingent consideration | $ | $ 35,000 | ||
Acquisitions 2016 [Member] | Electric Power Infrastructure Services Business [Member] | |||
Business Acquisition [Line Items] | |||
Number of business acquisitions | Acquisition | 2 | ||
Acquisitions 2016 [Member] | Electric Power Infrastructure Services Business [Member] | United States [Member] | |||
Business Acquisition [Line Items] | |||
Number of business acquisitions | Acquisition | 1 | ||
Acquisitions 2016 [Member] | Electric Power Infrastructure Services Business [Member] | Canada [Member] | |||
Business Acquisition [Line Items] | |||
Number of business acquisitions | Acquisition | 1 | ||
Acquisitions 2016 [Member] | Oil and Gas Infrastructure Services Business [Member] | United States [Member] | |||
Business Acquisition [Line Items] | |||
Number of business acquisitions | Acquisition | 1 |
Acquisitions (2015 Acquisitions
Acquisitions (2015 Acquisitions) - Additional Information (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($)Entityshares | |
Business Acquisition [Line Items] | ||
Aggregate consideration for acquisitions | $ | $ 42,211 | $ 110,428 |
Value of Quanta common stock and exchangeable shares issued | $ | 10,127 | |
Contingent consideration | $ | $ 15,400 | 1,001 |
Acquisitions 2015 [Member] | ||
Business Acquisition [Line Items] | ||
Aggregate consideration for acquisitions | $ | $ 110,400 | |
Number of shares granted for acquired companies | shares | 461,037 | |
Value of Quanta common stock and exchangeable shares issued | $ | $ 10,100 | |
Contingent consideration | $ | $ 1,000 | |
Number of business acquisitions | 11 | |
Acquisitions 2015 [Member] | Electric Power Infrastructure Services Business [Member] | ||
Business Acquisition [Line Items] | ||
Number of business acquisitions | 8 | |
Acquisitions 2015 [Member] | Electric Power Infrastructure Services Business [Member] | United States [Member] | ||
Business Acquisition [Line Items] | ||
Number of business acquisitions | 4 | |
Acquisitions 2015 [Member] | Electric Power Infrastructure Services Business [Member] | Australia [Member] | ||
Business Acquisition [Line Items] | ||
Number of business acquisitions | 1 | |
Acquisitions 2015 [Member] | Electric Power Infrastructure Services Business [Member] | Canada [Member] | ||
Business Acquisition [Line Items] | ||
Number of business acquisitions | 3 | |
Acquisitions 2015 [Member] | Oil and Gas Infrastructure Services Business [Member] | ||
Business Acquisition [Line Items] | ||
Number of business acquisitions | 3 | |
Acquisitions 2015 [Member] | Oil and Gas Infrastructure Services Business [Member] | United States [Member] | ||
Business Acquisition [Line Items] | ||
Number of business acquisitions | 1 | |
Acquisitions 2015 [Member] | Oil and Gas Infrastructure Services Business [Member] | Australia [Member] | ||
Business Acquisition [Line Items] | ||
Number of business acquisitions | 1 | |
Acquisitions 2015 [Member] | Oil and Gas Infrastructure Services Business [Member] | Canada [Member] | ||
Business Acquisition [Line Items] | ||
Number of business acquisitions | 1 |
Acquisitions (2016 and 2015 Acq
Acquisitions (2016 and 2015 Acquisitions) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||||||
Goodwill acquired | $ 26,116 | $ 51,641 | |||||
Other intangible assets, acquired | $ 8,327 | 8,327 | $ 24,987 | 24,987 | |||
Fair value of accounts receivable acquired | 10,200 | 10,200 | 20,600 | 20,600 | |||
Income (loss) from continuing operations before income taxes | 31,424 | $ 67,047 | 65,726 | $ 150,038 | |||
Electric Power Division [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 5,829 | ||||||
Oil and Gas Infrastructure Division [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 20,287 | ||||||
Acquisitions 2016 [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Net tangible assets acquired | $ 23,200 | ||||||
Goodwill acquired | 26,100 | ||||||
Other intangible assets, acquired | $ 8,300 | ||||||
Goodwill expected to be deductible for income tax | 400 | 400 | |||||
Revenues | 18,900 | 24,500 | |||||
Income (loss) from continuing operations before income taxes | $ 1,500 | (1,000) | |||||
Acquisitions 2016 [Member] | Electric Power Division [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 5,800 | ||||||
Acquisitions 2016 [Member] | Oil and Gas Infrastructure Division [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | $ 20,300 | ||||||
Acquisitions 2015 [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Net tangible assets acquired | 19,400 | ||||||
Goodwill acquired | 26,400 | ||||||
Other intangible assets, acquired | 10,200 | 10,200 | |||||
Goodwill expected to be deductible for income tax | $ 33,900 | 33,900 | |||||
Acquisitions 2015 [Member] | Electric Power Division [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 31,200 | ||||||
Acquisitions 2015 [Member] | Oil and Gas Infrastructure Division [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | $ 20,400 |
Acquisitions - Business Acquisi
Acquisitions - Business Acquisition Purchase Price Allocation Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Business Combinations [Abstract] | ||
Value of Quanta common stock and exchangeable shares issued | $ 10,127 | |
Cash paid or payable | $ 42,211 | 110,428 |
Contingent consideration | 15,400 | 1,001 |
Fair value of total consideration transferred or estimated to be transferred | 57,611 | 121,556 |
Current assets | 16,489 | 35,188 |
Property and equipment | 30,649 | 44,140 |
Other assets | 1,972 | 4 |
Identifiable intangible assets | 8,327 | 24,987 |
Current liabilities | (7,349) | (24,633) |
Deferred tax liabilities, net | (13,267) | (4,912) |
Other long-term liabilities | (5,326) | (5,606) |
Non-controlling interests | 747 | |
Total identifiable net assets | 31,495 | 69,915 |
Goodwill | 26,116 | 51,641 |
Fair value of total consideration transferred | $ 57,611 | $ 121,556 |
Acquisitions - Estimated Fair V
Acquisitions - Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization (Detail) - Acquisitions [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value at Acquisition Date | $ 8,327 |
Weighted Average Amortization Period at Acquisition Date in Years | 6 years 9 months 18 days |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value at Acquisition Date | $ 4,814 |
Weighted Average Amortization Period at Acquisition Date in Years | 3 years 3 months 18 days |
Backlog [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value at Acquisition Date | $ 822 |
Weighted Average Amortization Period at Acquisition Date in Years | 3 years 1 month 6 days |
Trade Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value at Acquisition Date | $ 2,448 |
Weighted Average Amortization Period at Acquisition Date in Years | 15 years |
Non-compete Agreements [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value at Acquisition Date | $ 243 |
Weighted Average Amortization Period at Acquisition Date in Years | 5 years |
Acquisitions - Unaudited Supple
Acquisitions - Unaudited Supplemental ProForma Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Business Combinations [Abstract] | ||||
Revenues | $ 1,792,430 | $ 1,916,000 | $ 3,513,472 | $ 3,835,457 |
Gross profit | 200,217 | 235,282 | 403,682 | 484,237 |
Selling, general and administrative expenses | 156,607 | 154,023 | 315,817 | 305,998 |
Amortization of intangible assets | 8,141 | 9,910 | 15,792 | 19,648 |
Net income from continuing operations | 16,729 | 37,053 | 37,069 | 91,347 |
Net income from continuing operations attributable to common stock | $ 16,562 | $ 33,597 | $ 36,539 | $ 83,190 |
Earnings per share from continuing operations attributable to common stock - basic and diluted | $ 0.11 | $ 0.16 | $ 0.23 | $ 0.39 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets - Summary of Changes in Quanta's Goodwill (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill [Line Items] | ||
Goodwill gross, beginning balance | $ 1,592,551 | |
Goodwill, beginning balance | 1,552,658 | |
Goodwill acquired | 26,116 | $ 51,641 |
Purchase price allocation adjustments | (214) | |
Foreign currency translation adjustments | 16,995 | |
Goodwill gross, ending balance | 1,635,740 | 1,592,551 |
Accumulated impairment | (40,185) | (39,893) |
Goodwill, ending balance | 1,595,555 | 1,552,658 |
Electric Power Division [Member] | ||
Goodwill [Line Items] | ||
Goodwill gross, beginning balance | 1,226,245 | |
Goodwill, beginning balance | 1,226,245 | |
Goodwill acquired | 5,829 | |
Foreign currency translation adjustments | 10,702 | |
Goodwill gross, ending balance | 1,242,776 | 1,226,245 |
Goodwill, ending balance | 1,242,776 | 1,226,245 |
Oil and Gas Infrastructure Division [Member] | ||
Goodwill [Line Items] | ||
Goodwill gross, beginning balance | 366,306 | |
Goodwill, beginning balance | 326,413 | |
Goodwill acquired | 20,287 | |
Purchase price allocation adjustments | (214) | |
Foreign currency translation adjustments | 6,293 | |
Goodwill gross, ending balance | 392,964 | 366,306 |
Accumulated impairment | (40,185) | (39,893) |
Goodwill, ending balance | $ 352,779 | $ 326,413 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | $ 487,145 | $ 469,748 |
Accumulated Amortization | (283,889) | (264,674) |
Intangible Assets, Net | $ 203,256 | 205,074 |
Remaining Weighted Average Amortization Period in Years | 10 years 7 months 6 days | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | $ 247,198 | 236,731 |
Accumulated Amortization | (101,744) | (90,840) |
Intangible Assets, Net | $ 145,454 | 145,891 |
Remaining Weighted Average Amortization Period in Years | 9 years 1 month 6 days | |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | $ 133,623 | 130,818 |
Accumulated Amortization | (131,086) | (126,954) |
Intangible Assets, Net | $ 2,537 | 3,864 |
Remaining Weighted Average Amortization Period in Years | 9 months 18 days | |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | $ 54,547 | 51,192 |
Accumulated Amortization | (11,313) | (9,525) |
Intangible Assets, Net | $ 43,234 | 41,667 |
Remaining Weighted Average Amortization Period in Years | 18 years | |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | $ 29,280 | 28,560 |
Accumulated Amortization | (24,890) | (23,507) |
Intangible Assets, Net | $ 4,390 | 5,053 |
Remaining Weighted Average Amortization Period in Years | 3 years 3 months 18 days | |
Patented Rights and Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization | $ 22,497 | 22,447 |
Accumulated Amortization | (14,856) | (13,848) |
Intangible Assets, Net | $ 7,641 | $ 8,599 |
Remaining Weighted Average Amortization Period in Years | 4 years 6 months |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 8,141 | $ 8,731 | $ 15,636 | $ 17,024 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets - Estimated Future Aggregate Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2016 | $ 15,288 | |
2,017 | 25,203 | |
2,018 | 24,394 | |
2,019 | 22,363 | |
2,020 | 21,046 | |
Thereafter | 94,962 | |
Intangible Assets, Net | $ 203,256 | $ 205,074 |
Per Share Information - Basic a
Per Share Information - Basic and Diluted Earnings Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Amounts attributable to common stock: | ||||
Net income from continuing operations | $ 16,562 | $ 32,007 | $ 37,058 | $ 79,696 |
Net income from discontinued operations | 14,102 | 19,897 | ||
Net income attributable to common stock | $ 16,562 | $ 46,109 | $ 37,058 | $ 99,593 |
Weighted average shares: | ||||
Weighted average shares outstanding for basic earnings per share | 156,128 | 213,047 | 159,577 | 214,257 |
Effect of dilutive stock options | 2 | 12 | 2 | 12 |
Weighted average shares outstanding for diluted earnings per share | 156,130 | 213,059 | 159,579 | 214,269 |
Debt Obligations - Long-term De
Debt Obligations - Long-term Debt Obligations (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Borrowings under credit facility | $ 398,028 | $ 466,850 |
Other long-term debt, interest rates ranging from 3.5% to 4.3% | 3,917 | 5,401 |
Capital leases, interest rates ranging from 2.5% to 6.2% | 4,777 | 5,351 |
Total long-term debt obligations | 406,722 | 477,602 |
Total long-term debt obligations | 406,722 | 477,602 |
Less - Current maturities of long-term debt | 5,603 | 2,238 |
Total long-term debt obligations, net of current maturities | $ 401,119 | $ 475,364 |
Debt Obligations - Long-term 53
Debt Obligations - Long-term Debt Obligations (Parenthetical) (Detail) | Jun. 30, 2016 | Dec. 31, 2015 |
Minimum [Member] | Other Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Capital leases and Other long-term debt interest rates | 3.50% | 3.50% |
Minimum [Member] | Capital Leases [Member] | ||
Debt Instrument [Line Items] | ||
Capital leases and Other long-term debt interest rates | 2.50% | 2.50% |
Maximum [Member] | Other Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Capital leases and Other long-term debt interest rates | 4.30% | 4.30% |
Maximum [Member] | Capital Leases [Member] | ||
Debt Instrument [Line Items] | ||
Capital leases and Other long-term debt interest rates | 6.20% | 6.20% |
Debt Obligations - Current Matu
Debt Obligations - Current Maturities of Long-Term Debt and Short-Term Borrowings (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Short-term Debt [Abstract] | ||
Short-term borrowings | $ 4,829 | |
Current maturities of long-term debt | $ 5,603 | 2,238 |
Current maturities of long-term debt and short-term borrowings | $ 5,603 | $ 7,067 |
Debt Obligations (Credit Facili
Debt Obligations (Credit Facility - Amended and Restated Credit Agreement) - Additional Information (Detail) - Current Credit Agreement [Member] | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Line of Credit Facility [Line Items] | |
Senior secured revolving credit facility | $ 1,810,000,000 |
Maturity date of senior secured revolving credit facility | Dec. 18, 2020 |
Option to increase revolving commitments under the credit agreement | $ 400,000,000 |
Revolving Loans and Letter of Credit in Alternative Currencies [Member] | |
Line of Credit Facility [Line Items] | |
Senior secured revolving credit facility | 600,000,000 |
U S Dollar [Member] | Swing Lines Loan [Member] | |
Line of Credit Facility [Line Items] | |
Senior secured revolving credit facility | 100,000,000 |
Canadian Dollars [Member] | Swing Lines Loan [Member] | |
Line of Credit Facility [Line Items] | |
Senior secured revolving credit facility | 50,000,000 |
Australian Dollars [Member] | Swing Lines Loan [Member] | |
Line of Credit Facility [Line Items] | |
Senior secured revolving credit facility | $ 30,000,000 |
Debt Obligations (Credit Faci56
Debt Obligations (Credit Facility - Current Borrowings) - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Line of Credit Facility [Line Items] | ||
Letters of credit and bank guarantees under the credit facility | $ 317,300 | |
Amount borrowed under the credit facility | 398,028 | $ 466,850 |
Credit facility available for revolving loans or issuing new letters of credit | 1,090,000 | |
Letters Of Credit and Bank Guarantees [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit and bank guarantees under the credit facility | 317,300 | |
Letters Of Credit and Bank Guarantees [Member] | U S Dollar [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit and bank guarantees under the credit facility | 217,600 | |
Letters Of Credit and Bank Guarantees [Member] | Canadian and Australian dollars [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit and bank guarantees under the credit facility | 99,700 | |
Borrowings Under Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount borrowed under the credit facility | 398,000 | |
Borrowings Under Credit Facility [Member] | U S Dollar [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount borrowed under the credit facility | 300,000 | |
Borrowings Under Credit Facility [Member] | Canadian Dollars [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount borrowed under the credit facility | $ 98,000 |
Debt Obligations - Information
Debt Obligations - Information on Borrowings under Current and Prior Credit Facility and Applicable Interest Rates (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Line of Credit Facility [Abstract] | ||||
Maximum amount outstanding during the period | $ 465,599,000 | $ 330,473,000 | $ 518,607,000 | $ 330,473,000 |
Average daily amount outstanding under the credit facility | $ 426,172,000 | $ 171,638,000 | $ 449,101,000 | $ 132,213,000 |
Weighted-average interest rate | 2.17% | 2.01% | 2.08% | 2.13% |
Debt Obligations (Credit Faci58
Debt Obligations (Credit Facility - Terms under the Amended and Restated Credit Agreement) - Additional Information (Detail) - Current Credit Agreement [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
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 |
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 |
Cross default provisions with debt instruments exceeding this amount | $ 100 |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.20% |
Minimum [Member] | Standby Letters of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument Basis Spread On Variable Rate | 1.125% |
Minimum [Member] | Performance Letters of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument Basis Spread On Variable Rate | 0.675% |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.40% |
Maximum [Member] | Standby Letters of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument Basis Spread On Variable Rate | 2.125% |
Maximum [Member] | Performance Letters of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument Basis Spread On Variable Rate | 1.275% |
Excess of Federal Funds Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument Basis Spread On Variable Rate | 0.50% |
Excess of Euro Currency Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument Basis Spread On Variable Rate | 1.00% |
Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument Basis Spread On Variable Rate | 1.125% |
Excess of Eurocurrency Rate Applicable to Domestic Borrowings Only [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument Basis Spread On Variable Rate | 2.125% |
Excess of Base Rate Domestic Borrowings Only [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument Basis Spread On Variable Rate | 0.125% |
Excess of Base Rate Domestic Borrowings Only [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument Basis Spread On Variable Rate | 1.125% |
Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument Basis Spread On Variable Rate | 1.125% |
Excess of Euro Currency Rate of Credit Agreement for Foreign Borrowings [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument Basis Spread On Variable Rate | 2.125% |
Equity (Exchangeable Shares and
Equity (Exchangeable Shares and Series F and Series G Preferred Stock) - Additional Information (Detail) - shares | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Class of Stock [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 | |
Common stock, shares outstanding | 144,194,115 | 152,907,166 |
Series F Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Number of preferred Stock issued to voting trust | 1 | 1 |
Series G Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Number of preferred Stock issued to voting trust | 1 | 1 |
Exchangeable Shares [Member] | ||
Class of Stock [Line Items] | ||
Common stock, shares outstanding | 6,876,042 | 6,876,042 |
Series F- and Series G- Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Exchangeable stock shares outstanding | 3,949,929 |
Equity (Treasury Stock) - Addit
Equity (Treasury Stock) - Additional Information (Detail) - USD ($) | Apr. 12, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Apr. 12, 2016 | Sep. 30, 2015 | Dec. 31, 2013 |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Payments for repurchase of common stock | $ 172,279,000 | $ 354,279,000 | |||||||
2015 Repurchase Program [Member] | Maximum [Member] | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Aggregate authorized amount of common stock to be repurchased | $ 1,250,000,000 | $ 1,250,000,000 | |||||||
2015 Repurchase Program Open Market Purchases [Member] | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Treasury stock acquired | 19,200,000 | ||||||||
Value of treasury stock acquired, cost method | $ 449,900,000 | ||||||||
2013 Repurchase Program [Member] | Maximum [Member] | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Aggregate authorized amount of common stock to be repurchased | $ 500,000,000 | ||||||||
2013 Repurchase Program Open Market Repurchases [Member] | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Treasury stock acquired | 14,300,000 | ||||||||
Value of treasury stock acquired, cost method | $ 406,500,000 | ||||||||
Accelerated Share Repurchase Agreement [Member] | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Treasury stock acquired | 9,400,000 | 25,700,000 | |||||||
Value of treasury stock acquired, cost method | $ 600,000,000 | ||||||||
Aggregate authorized amount of common stock to be repurchased | 750,000,000 | $ 750,000,000 | |||||||
Payments for repurchase of common stock | 750,000,000 | ||||||||
Accelerated stock repurchases not yet settled | $ 150,000,000 | ||||||||
2015 Repurchase Plan Open Market Purchases And Accelerated Share Repurchase Agreement [Member] | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Treasury stock acquired | 54,300,000 | ||||||||
Value of treasury stock acquired, cost method | $ 1,200,000,000 | ||||||||
Treasury stock remaining authorized repurchase amount | $ 50,100,000 | $ 50,100,000 | |||||||
Common Stock Withheld for Settlement of Employee Tax Liabilities [Member] | Treasury Stock [Member] | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Treasury stock acquired | 352,061 | 345,083 | |||||||
Value of treasury stock acquired, cost method | $ 7,200,000 | $ 9,900,000 |
Equity (Non-controlling Interes
Equity (Non-controlling Interests) - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |||||
Income attributable to the other joint venture members | $ 200,000 | $ 3,500,000 | $ 500,000 | $ 8,200,000 | |
Carrying value of the investments held by Quanta in variable interest entities | 2,900,000 | 2,900,000 | $ 2,300,000 | ||
Non-controlling interests | 2,851,000 | 2,851,000 | $ 2,321,000 | ||
Distributions to non-controlling interests | $ 0 | $ 2,500,000 | $ 0 | $ 5,000,000 |
Equity-Based Compensation (Stoc
Equity-Based Compensation (Stock Incentive Plans) - Additional Information (Detail) | Jun. 30, 2016shares |
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 |
Equity-Based Compensation (Rest
Equity-Based Compensation (Restricted Stock and RSUs to be Settled in Common Stock) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash stock compensation expense | $ 9,503 | $ 9,714 | $ 23,222 | $ 19,185 |
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 | 0.1 | 0.1 | 1.8 | 1.2 |
Granted, weighted average grant date fair value, per share | $ 23.59 | $ 29.96 | $ 22.11 | $ 27.90 |
Awards vested | 0.1 | 0.1 | 1.3 | 1.1 |
Fair value of restricted stock, vested | $ 1,100 | $ 2,300 | $ 26,400 | $ 33,800 |
Non-cash stock compensation expense | 8,500 | $ 9,000 | 21,700 | $ 17,800 |
Unrecognized compensation cost, related to unvested restricted stock, total | $ 44,000 | $ 44,000 | ||
Expected weighted average period to recognize compensation cost on restricted stock and RSUs to be settled in stock (in years) | 1 year 11 months 19 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 |
Equity-Based Compensation (Perf
Equity-Based Compensation (Performance Units to be Settled in Common Stock) - Additional Information (Detail) - Performance Units [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
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 company financial performance targets and strategic initiatives established by the Compensation Committee. | |||
Performance units granted | 100,000 | 0 | 300,000 | 200,000 |
Granted, weighted average grant date fair value, per share | $ 24.11 | $ 22.86 | $ 28.16 | |
Compensation costs | $ 1 | $ 0.7 | $ 1.5 | $ 1.4 |
Performance units vested | 0 | 0 | 0 | 0 |
Number of common shares issued in connection with performance units | 0 | 0 | 0 | 0 |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance units performance percentage | 0.00% | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance units performance percentage | 200.00% |
Equity-Based Compensation (RSUs
Equity-Based Compensation (RSUs to be Settled in Cash) - Additional Information (Detail) - Restricted Stock Units to be Settled in Cash [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
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 | $ 1.4 | $ 1.2 | $ 2.9 | $ 2.5 | |
Payments to settle liabilities under compensation plan | 2.4 | $ 1.6 | 3.4 | $ 2.5 | |
Accrued liabilities under Compensation Plan | $ 2.2 | $ 2.2 | $ 2.7 | ||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period for restricted stock and restricted stock units | 2 years | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period for restricted stock and restricted stock units | 3 years |
Commitments and Contingencies66
Commitments and Contingencies (Investments in Affiliates and Other Entities) - Additional Information (Detail) $ in Millions | 21 Months Ended | ||
Jun. 30, 2016USD ($)km | Jun. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Other Commitments, Planned Oil and Gas Infrastructure Projects [Member] | |||
Other Commitments [Line Items] | |||
Outstanding capital commitment | $ 5 | ||
Scenario Forecast [Member] | Other Commitments, Planned Oil and Gas Infrastructure Projects [Member] | |||
Other Commitments [Line Items] | |||
Outstanding capital commitment | $ 4.1 | $ 0.9 | |
Alberta Power Line [Member] | |||
Other Commitments [Line Items] | |||
Length of electrical transmission line to be constructed under contract | km | 500 | ||
Aggregate contributions to this unconsolidated affiliate | $ 8.4 | ||
Proceeds from return of capital | $ 2.3 |
Commitments and Contingencies -
Commitments and Contingencies - Outstanding Capital Commitments Associated with Investments in Unconsolidated Affiliates (Detail) - Corporate Joint Venture [Member] - Other Commitments, Engineering, Procurement and Construction Electric Transmission Project [Member] $ in Thousands | Jun. 30, 2016USD ($) |
Other Commitments [Line Items] | |
Capital commitments, Remainder of 2016 | $ 6,852 |
Capital commitments, 2017 | 33,199 |
Capital commitments, 2018 | 0 |
Capital commitments, 2019 | 24,511 |
Total capital commitments associated with investments in an unconsolidated affiliate related to an EPC electrical transmission project | $ 64,562 |
Commitments and Contingencies68
Commitments and Contingencies - Outstanding Capital Commitments Associated with Investments in Unconsolidated Affiliates (Parenthetical) (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Other Commitments, Engineering, Procurement and Construction Electric Transmission Project [Member] | Corporate Joint Venture [Member] | |
Other Commitments [Line Items] | |
Return of capital from unconsolidated affiliates anticipated for 2017 | $ 43.8 |
Commitments and Contingencies69
Commitments and Contingencies - Minimum Lease Payments (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2016 | $ 55,908 |
2,017 | 78,221 |
2,018 | 56,538 |
2,019 | 34,412 |
2,020 | 19,433 |
Thereafter | 26,281 |
Total minimum lease payments | $ 270,793 |
Commitments and Contingencies70
Commitments and Contingencies (Leases) - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Leases [Abstract] | ||||
Rent expense related to operating leases | $ 58.4 | $ 50.9 | $ 114.8 | $ 100.2 |
Maximum guaranteed residual value | $ 538.7 | $ 538.7 |
Commitments and Contingencies71
Commitments and Contingencies (Committed Expenditures) - Additional Information (Detail) $ in Millions | Jun. 30, 2016USD ($) |
Vehicle Fleet Committed Capital [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Estimated committed capital in next fiscal year | $ 3.6 |
Commitments and Contingencies72
Commitments and Contingencies (Legal Proceedings) - Additional Information (Detail) - Lorenzo Benton v Telecom Network Specialists Inc [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)Agency | |
Loss Contingencies [Line Items] | |
Number of staffing Agency | Agency | 29 |
Amount sought by plaintiff for class damages | $ 16 |
Amount sought by plaintiff for legal fees | $ 5 |
Commitments and Contingencies73
Commitments and Contingencies (Concentrations of Credit Risk) - Additional Information (Detail) - Customer Concentration Risk [Member] - Customer | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Sales Revenue, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of customers representing ten percent or more of concentration risk | 0 | 0 | 0 | 0 | |
Net Position [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of customers representing ten percent or more of concentration risk | 1 | 1 | |||
Net Position [Member] | Quanta's Electric Power Infrastructure Services Segment [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of customers representing ten percent or more of concentration risk | 1 | 1 | |||
Concentration risk percentage | 18.00% | 12.00% |
Commitments and Contingencies74
Commitments and Contingencies (Self-Insurance) - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Commitment And Contingencies [Line Items] | ||
Insurance and other non-current liabilities | $ 284,036 | $ 260,129 |
Insurance Claims [Member] | ||
Commitment And Contingencies [Line Items] | ||
Gross amount accrued for insurance claims | 212,900 | 209,000 |
Insurance and other non-current liabilities | 158,200 | 153,500 |
Related insurance recoveries/receivables | 9,200 | 8,600 |
Related insurance recoveries/receivables included in prepaid expenses and other current assets | 600 | 600 |
Related insurance recoveries/receivables included in other assets net | $ 8,600 | $ 8,000 |
Commitments and Contingencies75
Commitments and Contingencies (Letters of Credit) - Additional Information (Detail) $ in Millions | Jun. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Letters of credit and bank guarantees under the credit facility | $ 317.3 |
Commitments and Contingencies76
Commitments and Contingencies (Performance Bonds and Parent Guarantees) - Additional Information (Detail) $ in Millions | Jun. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total amount of outstanding performance bonds | $ 2,700 |
Estimated cost to complete bonded projects | $ 667 |
Commitments and Contingencies77
Commitments and Contingencies (Collective Bargaining Agreements) - Additional Information (Detail) - Withdrawal from Multiemployer Defined Benefit Plan [Member] - Central States Plan [Member] - USD ($) | Mar. 13, 2013 | Jun. 30, 2016 | Jun. 30, 2016 | Jan. 31, 2016 | Jul. 31, 2014 | Oct. 09, 2013 | Dec. 31, 2011 |
Loss Contingencies [Line Items] | |||||||
Amount of withdrawal liability | $ 32,900,000 | $ 39,600,000 | $ 32,600,000 | ||||
Payment of withdrawal liability assessment amount | $ 13,700,000 | ||||||
Acquired Company [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Amount of withdrawal liability | $ 4,800,000 | $ 4,800,000 | |||||
Payment of withdrawal liability assessment amount | $ 3,100,000 | ||||||
Multiemployer plan withdrawal obligation, amount suggested by Plan which is different than amount recorded by company | $ 6,900,000 | ||||||
Cash proceeds deposited in Escrow account | $ 2,100,000 | ||||||
Minimum [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Amount of withdrawal liability | 40,100,000 | 40,100,000 | |||||
Maximum [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Amount of withdrawal liability | $ 55,400,000 | $ 55,400,000 |
Commitments and Contingencies78
Commitments and Contingencies (Indemnities) - Additional Information (Detail) - Indemnification Agreement [Member] $ in Millions | Jun. 30, 2016USD ($) |
Loss Contingencies [Line Items] | |
Pre-acquisition non-U.S.tax obligations and indemnification asset amount recorded | $ 11.4 |
Pre-acquisition non-U.S.tax obligations and indemnification liability amount recorded | $ 11.4 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Segment | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Revenues | $ 1,792,430 | $ 1,872,340 | $ 3,506,167 | $ 3,733,726 | |
Property and equipment | 1,160,870 | 1,160,870 | $ 1,101,959 | ||
Foreign Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 335,600 | $ 359,200 | 688,000 | $ 892,700 | |
Property and equipment | $ 334,100 | $ 334,100 | $ 317,600 | ||
Foreign Operations [Member] | Canada [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of foreign revenues | 67.00% | 84.00% | 73.00% | 86.00% |
Segment Information - Summarize
Segment Information - Summarized Financial Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,792,430 | $ 1,872,340 | $ 3,506,167 | $ 3,733,726 |
Operating income (loss) | 35,469 | 68,851 | 72,763 | 153,001 |
Depreciation | 42,759 | 41,030 | 83,929 | 80,428 |
Electric Power Infrastructure Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,159,087 | 1,222,324 | 2,346,089 | 2,462,616 |
Operating income (loss) | 75,934 | 88,027 | 163,258 | 197,019 |
Depreciation | 22,937 | 22,072 | 45,882 | 42,989 |
Oil and Gas Infrastructure Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 633,343 | 650,016 | 1,160,078 | 1,271,110 |
Operating income (loss) | 11,899 | 35,981 | 17,740 | 60,128 |
Depreciation | 17,254 | 16,783 | 33,055 | 33,252 |
Corporate and Non-Allocated Costs [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | (52,364) | (55,157) | (108,235) | (104,146) |
Depreciation | $ 2,568 | $ 2,175 | $ 4,992 | $ 4,187 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($)Acquisition | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Subsequent Event [Line Items] | |||
Consideration transferred or to be transferred cash and liabilities incurred except for contingent consideration | $ 42,211,000 | $ 110,428,000 | |
Contingent consideration | $ 15,400,000 | $ 1,001,000 | |
Scenario Forecast [Member] | |||
Subsequent Event [Line Items] | |||
Consideration transferred or to be transferred cash and liabilities incurred except for contingent consideration | $ 34,300,000 | ||
Scenario Forecast [Member] | Maximum [Member] | |||
Subsequent Event [Line Items] | |||
Contingent consideration | $ 4,500,000 | ||
Scenario Forecast [Member] | Electric Power Infrastructure Services Business [Member] | |||
Subsequent Event [Line Items] | |||
Number of business acquisitions | Acquisition | 2 | ||
Scenario Forecast [Member] | Electric Power Infrastructure Services Business [Member] | Australia [Member] | |||
Subsequent Event [Line Items] | |||
Number of business acquisitions | Acquisition | 1 | ||
Scenario Forecast [Member] | Electric Power Infrastructure Services Business [Member] | Canada [Member] | |||
Subsequent Event [Line Items] | |||
Number of business acquisitions | Acquisition | 1 |