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Discontinued Operations
 12 Months Ended
Dec. 31, 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 was 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 consolidated financial statements. The results were previously included in Quanta’s Fiber Optic Licensing and Other segment.

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):

 

     Year Ended December 31,  
     2015      2014     2013  

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

        

Revenues

    $ 59,998       $ 104,021      $ 111,265   

Expenses:

        

Cost of services (including depreciation)

      24,748         39,295        42,745   

Selling, general and administrative expenses

      12,047         16,561        15,941   

Amortization of intangible assets

      963         1,650        1,650   

Other income (expense) items that are not major

      10         3        —     
  

 

 

     

 

 

    

 

 

  

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

      22,250         46,518        50,929   

Pretax gain on the disposal of the fiber optic licensing operations

      271,833         —          —     
  

 

 

     

 

 

    

 

 

  

Total pretax gain on fiber optic licensing operations

      294,083         46,518        50,929   

Provision for income taxes related to fiber optic licensing operations

      103,462         18,401        21,065   
  

 

 

     

 

 

    

 

 

  

Net income from discontinued operations related to fiber optic licensing operations

      190,621         28,117        29,864   

Net loss from discontinued operations related to telecommunication operations

      —         $ (627 )    $ —     
  

 

 

     

 

 

    

 

 

  

Net income from discontinued operations as presented in the statements of operations

    $ 190,621       $ 27,490      $ 29,864   
  

 

 

     

 

 

    

 

 

  

 

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

 

     December 31,
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

      —           2,258   
  

 

 

     

 

 

  

Total current assets of fiber optic licensing operations

    $ —         $ 13,687   
  

 

 

     

 

 

  

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

    $ 15,313       $ 21,091   
  

 

 

     

 

 

  

Total current liabilities of fiber optic licensing operations

    $ 15,313       $ 21,091   
  

 

 

     

 

 

  

Non-current liabilities:

      

Deferred income taxes

    $ —         $ 57,108   

Long-term deferred revenue

      —           48,231   
  

 

 

     

 

 

  

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

      —           105,339   

Other non-current liabilities of fiber optic licensing operations

      —           193   
  

 

 

     

 

 

  

Total non-current liabilities of fiber optic licensing operations

    $ —         $ 105,532   
  

 

 

     

 

 

  

Additionally, on December 3, 2012, Quanta sold substantially all of its domestic telecommunications infrastructure services operations and related subsidiaries. During the year ended December 31, 2014, legal fees of $1.0 million were accrued related to an ongoing legal matter associated with these discontinued operations. The net of tax impact of these legal fees was $0.6 million. See Legal Proceedings — Lorenzo Benton v. Telecom Network Specialists, Inc., et al. in Note 15 for additional information.