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Discontinued Operations
 9 Months Ended
Sep. 30, 2015
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 previously included in Quanta’s Fiber Optic Licensing and Other segment.

Quanta will remain liable for all income 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 before tax related to Quanta’s fiber optic licensing operations (in thousands):

 

    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
    2015     2014     2015     2014  

Major classes of line items constituting pretax income from fiber optic licensing operations:

        

Revenues

   $ 8,736      $ 25,186      $ 59,998      $ 78,653   

Expenses:

        

Cost of services (including depreciation)

     3,037        9,118        24,748        29,329   

Selling, general and administrative expenses

     366        4,027        10,247        12,699   

Amortization of intangible assets

     138        413        963        1,238   

Other income (expense) items that are not major

     —          2        10        4   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net income before taxes of discontinued operations related to fiber optic licensing operations related to major classes of income before taxes

     5,195        11,630        24,050        35,391   

Pretax gain on the disposal of the discontinued operations

     271,833        —          271,833        —     
 

 

 

    

 

 

    

 

 

    

 

 

  

Total pretax gain on discontinued operations

     277,028        11,630        295,883        35,391   

Provision for income taxes

     103,816        4,905        102,774        14,071   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net income from discontinued operations related to fiber optic licensing operations as presented in the statements of operations

   $ 173,212      $ 6,725      $ 193,109      $ 21,320   
 

 

 

    

 

 

    

 

 

    

 

 

  

 

The following represents a reconciliation of the carrying amounts of major classes of assets and liabilities of fiber optic licensing operations (in thousands):

 

     September 30,
2015		      December 31,
2014		  

Carrying amounts of major classes of assets included as part of fiber optic licensing operations:

      

Current assets:

      

Accounts receivable

    $ —         $ 11,429   

Prepaid expenses and other current assets

      —           11,287   
  

 

 

     

 

 

  

Total current assets of fiber optic licensing operations

    $ —         $ 22,716   
  

 

 

     

 

 

  

Non-current assets:

      

Property and equipment

    $ —         $ 380,554   

Other intangible assets, net of accumulated amortization

      —           17,009   

Goodwill

      —           334,790   
  

 

 

     

 

 

  

Total major classes of non-current assets of fiber optic licensing operations

      —           732,353   

Other non-current assets included in fiber optic licensing operations

      —           6,709   
  

 

 

     

 

 

  

Total non-current assets of fiber optic licensing operations

    $ —         $ 739,062   
  

 

 

     

 

 

  

Carrying amounts of major classes of liabilities of fiber optic licensing operations:

      

Current liabilities:

      

Accounts payable and accrued expenses

    $ 147,148       $ 21,091   
  

 

 

     

 

 

  

Total current liabilities of fiber optic licensing operations

    $ 147,148       $ 21,091   
  

 

 

     

 

 

  

Non-current liabilities:

      

Deferred income taxes

    $ —         $ 66,137   

Long-term deferred revenue

      —           48,231   
  

 

 

     

 

 

  

Total major classes of non-current liabilities of fiber optic licensing operations

      —           114,368   

Other non-current liabilities of fiber optic licensing operations

      —           193   
  

 

 

     

 

 

  

Total non-current liabilities of fiber optic licensing operations

    $ —         $ 114,561