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Acquisitions | 12 Months Ended
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Dec. 31, 2013
Business Combinations [Abstract] |
Acquisitions |
5. | ACQUISITIONS:
2013 Acquisitions During 2013, Quanta acquired six businesses, which included electric power infrastructure services companies and oil and gas infrastructure services companies based in the U.S., Canada and Australia. The aggregate consideration paid for these acquisitions consisted of approximately $341.1 million in cash and 3,547,482 shares of Quanta common stock valued, as of the respective dates of issuance, at approximately $88.9 million. The results for each company have been included in Quanta’s consolidated financial statements beginning on the respective dates of acquisition. These acquisitions have enabled Quanta to further enhance its electric power infrastructure service and oil and gas infrastructure service offerings in the United States and select international markets. 2012 Acquisitions In the first and second quarters of 2012, Quanta acquired four businesses, which included one electric power infrastructure services company based in Canada, two electric power infrastructure services companies based in the United States and one oil and gas infrastructure services company based in the United States. These businesses have been reflected in Quanta’s consolidated financial statements as of their respective acquisition dates. The aggregate consideration for these acquisitions consisted of approximately $57.5 million in cash, 1,927,113 shares of Quanta common stock valued at approximately $37.3 million, as of the respective dates of acquisition, and the repayment of $11.0 million in debt. These acquisitions have enabled Quanta to expand its capabilities and scope of services internationally and in the United States. The financial results of these businesses are generally included in the corresponding segment. 2011 Acquisitions In the third and fourth quarters of 2011, Quanta acquired five businesses, which included three electric power infrastructure services companies based in Canada, one electric power infrastructure services company based in the United States and one oil and gas infrastructure services company based in Australia. These businesses have been reflected in Quanta’s consolidated financial statements as of their respective acquisition dates. The aggregate consideration for these acquisitions consisted of approximately $80.8 million in cash, 1,939,813 shares of Quanta common stock valued at approximately $32.4 million, as of the respective dates of acquisition, and the repayment of $3.4 million in debt. These acquisitions have enabled Quanta to further expand its capabilities and scope of services internationally and in the United States. The financial results of these businesses are generally included in the corresponding segment. The following table summarizes the aggregate consideration paid for the 2013 and 2012 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 the 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).
|  | 2013 |  |  | 2012 |
|  | All Acquisitions |  |  | All Acquisitions |
Consideration: |  |  |  |  |  |  |  |
Value of Quanta common stock issued |  | $ | 88,895 |  |  | $ | 37,291 |
Cash paid |  |  | 341,064 |  |  |  | 68,507 |
Fair value of total consideration transferred |  | $ | 429,959 |  |  | $ | 105,798 |
Current assets |  | $ | 193,895 |  |  | $ | 20,516 |
Property and equipment |  |  | 60,988 |  |  |  | 18,821 |
Other assets |  |  | 1,009 |  |  |  | 123 |
Identifiable intangible assets |  |  | 55,124 |  |  |  | 17,931 |
Current liabilities |  |  | (127,430 | ) |  |  | (10,008 | )
Deferred tax liabilities, net |  |  | (4,083 | ) |  |  | (6,173 | )
Other long-term liabilities |  |  | (5,350 | ) |  |  | (191 | )
Total identifiable net assets |  |  | 174,153 |  |  |  | 41,019 |
Goodwill |  |  | 255,806 |  |  |  | 64,779 |
|  | $ | 429,959 |  |  | $ | 105,798 |
The fair value of current assets acquired in 2013 included accounts receivable with a fair value of $83.9 million. The fair value of current assets acquired in 2012 included accounts receivable with a fair value of $15.3 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 2013, 2012 and 2011 acquisitions strategically expanded Quanta’s Canadian service offering, added Australian service offerings and enhanced its domestic electric power and oil and gas infrastructure service offerings, which Quanta believes contributes to the recognition of the goodwill. In connection with the 2013 acquisitions, goodwill of $112.5 million was recorded for reporting units included within Quanta’s electric power division and $143.3 million was recorded for reporting units included within Quanta’s oil and gas infrastructure division at December 31, 2013. In connection with the 2012 acquisitions, goodwill of $57.5 million was recorded for reporting units included within Quanta’s electric power division and $7.3 million was recorded for reporting units included within Quanta’s oil and gas infrastructure division at December 31, 2012. Goodwill of approximately $213.6 million and $52.9 million is expected to be deductible for income tax purposes related to the businesses acquired in 2013 and 2012. The unaudited supplemental pro forma results of operations have been provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future. Future results may vary significantly from the results reflected in the following pro forma financial information because of future events and transactions, as well as other factors (in thousands, except per share amounts):
|  | Year Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Revenues |  | $ | 6,947,284 |  |  | $ | 6,477,648 |  |  | $ | 4,378,213 |
Gross profit |  | $ | 1,144,024 |  |  | $ | 1,060,370 |  |  | $ | 613,047 |
Selling, general and administrative expenses |  | $ | 531,342 |  |  | $ | 478,184 |  |  | $ | 359,514 |
Amortization of intangible assets |  | $ | 31,361 |  |  | $ | 52,339 |  |  | $ | 39,252 |
Net income from continuing operations |  | $ | 454,311 |  |  | $ | 344,925 |  |  | $ | 143,423 |
Net income from continuing operations attributable to common stock |  | $ | 434,923 |  |  | $ | 328,898 |  |  | $ | 131,522 |
Earnings per share from continuing operations attributable to common stock — basic and diluted |  | $ | 2.00 |  |  | $ | 1.52 |  |  | $ | 0.61 |
The pro forma combined results of operations for the years ended December 31, 2013 and 2012 have been prepared by adjusting the historical results of Quanta to include the historical results of the 2013 acquisitions as if they occurred January 1, 2012. The pro forma combined results of operations for the year ended December 31, 2012 have also been prepared by adjusting the historical results of Quanta to include the historical results of the 2012 acquisitions as if they occurred January 1, 2011. The pro forma combined results of operations for the year ended December 31, 2011 have been prepared by adjusting the historical results of Quanta to include the historical results of the 2012 acquisitions as if they occurred January 1, 2011 and the historical results of the 2011 acquisitions as if it occurred January 1, 2010. These pro forma combined historical results were then adjusted for the following: a reduction of interest expense and interest income as a result of the repayment of outstanding indebtedness, a reduction of interest income as a result of the cash consideration paid net of cash received, an increase in amortization expense due to the incremental intangible assets recorded related to the 2013, 2012 and 2011 acquisitions, an increase or decrease in depreciation expense within cost of services related to the net impact of adjusting acquired property and equipment to the acquisition date fair value and conforming depreciable lives with Quanta’s accounting policies, an increase in the number of outstanding shares of Quanta common stock and certain reclassifications to conform the acquired companies’ presentation to Quanta’s accounting policies. The pro forma results of operations do not include any adjustments to eliminate the impact of acquisition related costs or any cost savings or other synergies that may result from the 2013, 2012 and 2011 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 $251.3 million and income from continuing operations before income taxes of approximately $18.2 million are included in Quanta’s consolidated results of operations for the year ended December 31, 2013 related to the six 2013 acquisitions following their respective dates of acquisition. Additionally, revenues of approximately $125.7 million and income from continuing operations before income taxes of approximately $6.2 million are included in Quanta’s consolidated results of operations for the year ended December 31, 2012 related to the four 2012 acquisitions following their respective dates of acquisition. Additionally, revenues of approximately $43.8 million and income from continuing operations before income taxes of approximately $4.4 million are included in Quanta’s consolidated results of operations for the year ended December 31, 2011 related to the five 2011 acquisitions following their respective dates of acquisition.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
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