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Segment Information
 3 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
Segment Information
11. SEGMENT INFORMATION:

Quanta presents its operations under three reportable segments: (1) Electric Power Infrastructure Services, (2) Oil and Gas Infrastructure Services and (3) Fiber Optic Licensing and Other. This structure is generally based on the broad end-user markets for Quanta’s services. See Note 1 for additional information regarding Quanta’s reportable segments.

Quanta’s segment results are derived from the types of services provided across its operating units in each of the end user markets described above. Quanta’s entrepreneurial business model allows each of its operating units to serve the same or similar customers and to provide a range of services across end user markets. Quanta’s operating units are organized into one of three internal divisions, namely, the electric power division, oil and gas infrastructure division and fiber optic licensing division. These internal divisions are closely aligned with the reportable segments described above based on their operating units’ predominant type of work.

Reportable segment information, including revenues and operating income by type of work, is gathered from each operating unit for the purpose of evaluating segment performance in support of Quanta’s market strategies. These classifications of Quanta’s operating unit revenues by type of work for segment reporting purposes can at times require judgment on the part of management. Quanta’s operating units may perform joint infrastructure service projects for customers in multiple industries, deliver multiple types of network services under a single customer contract or provide service across industries, for example, joint trenching projects to install distribution lines for electric power and natural gas customers. In addition, Quanta’s integrated operations and common administrative support at each of its operating units require that certain allocations, including allocations of shared and indirect costs, such as facility costs, indirect operating expenses, including depreciation, and general and administrative costs, be made to determine operating segment profitability. Corporate costs, such as payroll and benefits, employee travel expenses, facility costs, professional fees, acquisition costs and amortization related to certain intangible assets are not allocated.

 

Summarized financial information for Quanta’s reportable segments is presented in the following table (in thousands):

 

     Three Months Ended
March 31,		  
     2014     2013  

Revenues:

     

Electric Power

    $ 1,278,168      $ 1,180,983   

Oil and Gas Infrastructure

      445,857        358,932   

Fiber Optic Licensing and Other

      38,549        45,795   
  

 

 

    

 

 

  

Consolidated

    $ 1,762,574      $ 1,585,710   
  

 

 

    

 

 

  

Operating income (loss):

     

Electric Power

    $ 144,412      $ 132,550   

Oil and Gas Infrastructure

      (21,172 )      10,357   

Fiber Optic Licensing and Other

      12,109        16,883   

Corporate and non-allocated costs

      (44,854 )      (40,499 ) 
  

 

 

    

 

 

  

Consolidated

    $ 90,495      $ 119,291   
  

 

 

    

 

 

  

Depreciation:

     

Electric Power

    $ 17,564      $ 14,923   

Oil and Gas Infrastructure

      13,215        11,265   

Fiber Optic Licensing and Other

      4,318        4,051   

Corporate and non-allocated costs

      1,768        1,641   
  

 

 

    

 

 

  

Consolidated

    $ 36,865      $ 31,880   
  

 

 

    

 

 

  

Separate measures of Quanta’s assets and cash flows by reportable segment, including capital expenditures, are not produced or utilized by management to evaluate segment performance. Quanta’s fixed assets, which are held at the operating unit level, include operating machinery, equipment and vehicles, as well as office equipment, buildings and leasehold improvements, are used on an interchangeable basis across its reportable segments. As such, for reporting purposes, total depreciation expense is allocated each quarter among Quanta’s reportable segments based on the ratio of each reportable segment’s revenue contribution to consolidated revenues.

Foreign Operations

During the three months ended March 31, 2014 and 2013, Quanta derived $456.2 million and $299.2 million of its revenues from foreign operations. Of Quanta’s foreign revenues, approximately 84% and 96% was earned in Canada during the three months ended March 31, 2014 and 2013. In addition, Quanta held property and equipment of $226.1 million and $196.8 million in foreign countries, primarily Canada, as of March 31, 2014 and December 31, 2013. The increases in foreign revenues and assets were primarily due to the timing of the non-U.S. acquisitions described in Note 4.