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Discontinued Operations
 9 Months Ended
Sep. 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 remains 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.

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. 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
September 30,		      Nine Months Ended
September 30,		  
     2016     2015      2016     2015  

Major classes of line items constituting pretax income from discontinued operations:

          

Revenues

    $ —        $ 8,736       $ —        $ 59,998   

Expenses:

          

Cost of services (including depreciation)

      —          3,037         —          24,748   

Selling, general and administrative expenses

      (980 )      366         (980 )      10,247   

Amortization of intangible assets

      —          138         —          963   

Other income (expense) items that are not major

      —          —           —          10   
  

 

 

    

 

 

     

 

 

    

 

 

  

Income before taxes of discontinued operations

      980        5,195         980        24,050   

Pretax gain on the disposal of the fiber optic licensing operations

      —          271,833         —          271,833   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total pretax gain on fiber optic licensing operations

      980        277,028         980        295,883   

Provision for income taxes related to discontinued operations

      375        103,816         375        102,774   
  

 

 

    

 

 

     

 

 

    

 

 

  

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

    $ 605      $ 173,212       $ 605      $ 193,109   
  

 

 

    

 

 

     

 

 

    

 

 

  

There were no assets or non-current liabilities associated with fiber optic licensing operations at September 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):

 

    September 30,
2016		     December 31,
2015		  

Carrying amounts of major classes of liabilities of discontinued operations:

    

Current liabilities:

    

Accounts payable and accrued expenses

   $ 1,367      $ 15,313   
 

 

 

    

 

 

  

Total current liabilities of discontinued operations

   $ 1,367      $ 15,313