XML 31 R14.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Goodwill and Other Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets |
6. | GOODWILL AND OTHER INTANGIBLE ASSETS:
A summary of changes in Quanta’s goodwill is as follows (in thousands):
|  | Electric Power Infrastructure Services Division |  |  | Oil and Gas Infrastructure Services Division |  |  | Total |
Goodwill balance at December 31, 2014 |  | $ | 1,223,224 |  |  | $ | 373,471 |  |  | $ | 1,596,695 |
Goodwill acquired during 2015 |  |  | 31,224 |  |  |  | 20,636 |  |  |  | 51,860 |
Purchase price allocation adjustments |  |  | 750 |  |  |  | (8,867 | ) |  |  | (8,117 | )
Goodwill impaired during 2015 |  |  | — |  |  |  | (39,826 | ) |  |  | (39,826 | )
Foreign currency translation adjustments |  |  | (28,953 | ) |  |  | (19,001 | ) |  |  | (47,954 | )
Balance at December 31, 2015: |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 1,226,245 |  |  |  | 366,306 |  |  |  | 1,592,551 |
Accumulated impairment |  |  | — |  |  |  | (39,893 | ) |  |  | (39,893 | )
Goodwill, net |  |  | 1,226,245 |  |  |  | 326,413 |  |  |  | 1,552,658 |
Goodwill acquired during 2016 |  |  | 24,168 |  |  |  | 21,018 |  |  |  | 45,186 |
Purchase price allocation adjustments |  |  | 229 |  |  |  | (214 | ) |  |  | 15 |
Foreign currency translation adjustments |  |  | 3,337 |  |  |  | 1,973 |  |  |  | 5,310 |
Balance at December 31, 2016: |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 1,253,979 |  |  |  | 388,923 |  |  |  | 1,642,902 |
Accumulated impairment |  |  | — |  |  |  | (39,733 | ) |  |  | (39,733 | )
Goodwill, net |  | $ | 1,253,979 |  |  | $ | 349,190 |  |  | $ | 1,603,169 |
The purchase price allocation adjustments recorded in the year ended December 31, 2016 primarily represent changes in deferred tax liability estimates and would have had no impact on the consolidated financial statements in prior periods had these adjustments been booked at the respective acquisition dates. The purchase price allocation adjustments recorded in the year ended December 31, 2015 resulted primarily from net working capital adjustments and changes in tax estimates. The goodwill impairment in the year ended December 31, 2015 primarily resulted from lower levels of expected activity in the U.S. Gulf of Mexico and, to a lesser extent, due to the extended low commodity price environment with respect to certain directional drilling operations in Australia. The two reporting units impacted are in Quanta’s Oil and Gas Infrastructure Services Division. Also, as described in Note 2, Quanta’s operating units are organized into one of Quanta’s two internal divisions and, accordingly, the goodwill associated with the operating units has been aggregated on a divisional basis in the table above. These divisions are closely aligned with Quanta’s reportable segments and operating units are assigned to a division based on the predominant type of work performed. From time to time, operating units may be reorganized between divisions as business environments evolve. Quanta’s intangible assets subject to amortization and the remaining weighted average amortization periods related to such assets were as follows (in thousands except for weighted average amortization periods, which are in years):
|  | As of December 31, 2016 |  |  | As of December 31, 2015 |  |  | As of December 31, 2016 |
|  | Intangible Assets |  |  | Accumulated Amortization |  |  | Intangible Assets, Net |  |  | Intangible Assets |  |  | Accumulated Amortization |  |  | Intangible Assets, Net |  |  | Remaining Weighted Average Amortization Period in Years |
Customer relationships |  | $ | 244,329 |  |  | $ | (110,640 | ) |  | $ | 133,689 |  |  | $ | 236,731 |  |  | $ | (90,840 | ) |  | $ | 145,891 |  |  |  | 8.7 |
Backlog |  |  | 133,592 |  |  |  | (132,441 | ) |  |  | 1,151 |  |  |  | 130,818 |  |  |  | (126,954 | ) |  |  | 3,864 |  |  |  | 1.3 |
Trade names |  |  | 54,723 |  |  |  | (12,855 | ) |  |  | 41,868 |  |  |  | 51,192 |  |  |  | (9,525 | ) |  |  | 41,667 |  |  |  | 17.7 |
Non-compete agreements |  |  | 29,212 |  |  |  | (25,546 | ) |  |  | 3,666 |  |  |  | 28,560 |  |  |  | (23,507 | ) |  |  | 5,053 |  |  |  | 3.1 |
Patented rights and developed technology |  |  | 22,480 |  |  |  | (15,831 | ) |  |  | 6,649 |  |  |  | 22,447 |  |  |  | (13,848 | ) |  |  | 8,599 |  |  |  | 4.2 |
Total intangible assets subject to amortization |  | $ | 484,336 |  |  | $ | (297,313 | ) |  | $ | 187,023 |  |  | $ | 469,748 |  |  | $ | (264,674 | ) |  | $ | 205,074 |  |  |  | 10.4 |
Amortization expense for intangible assets was $31.7 million, $34.8 million and $34.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. Additionally, during the year ended December 31, 2015, Quanta recorded an impairment charge of $12.1 million related to customer relationships, trade names and non-compete agreement intangible assets. These intangible asset impairments primarily resulted from lower levels of expected activity in the U.S. Gulf of Mexico and, to a lesser extent, due to the extended low commodity price environment with respect to certain directional drilling operations in Australia. The two reporting units impacted are in Quanta’s Oil and Gas Infrastructure Services Division. The impairment charge is reflected in the December 31, 2016 and 2015 accumulated amortization balances above. The estimated future aggregate amortization expense of intangible assets subject to amortization as of December 31, 2016 is set forth below (in thousands):
For the Fiscal Year Ending December 31, |  |  |
2017 |  | $ | 25,574 |
2018 |  |  | 24,265 |
2019 |  |  | 22,227 |
2020 |  |  | 20,948 |
2021 |  |  | 18,620 |
Thereafter |  |  | 75,389 |
Total |  | $ | 187,023 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration