XML 29 R12.htm IDEA: XBRL DOCUMENT v3.6.0.2
Discontinued Operations
 12 Months Ended
Dec. 31, 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 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 primarily related to Quanta’s fiber optic licensing operations to the consolidated statements of operations (in thousands):

 

     Year Ended December 31,  
     2016     2015      2014  

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

        

Revenues

    $ —       $ 59,998      $ 104,021  

Expenses:

        

Cost of services (including depreciation)

      —         24,748        39,295  

Selling, general and administrative expenses

      (980 )      12,047        16,561  

Amortization of intangible assets

      —         963        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

      980       22,250        46,518  

Pretax gain on the disposal of the fiber optic licensing operations

      —         271,833        —    
  

 

 

    

 

 

     

 

 

  

Total pretax gain on fiber optic licensing operations

              980       294,083        46,518  

Provision for income taxes related to fiber optic licensing operations

      667       103,462        18,401  
  

 

 

    

 

 

     

 

 

  

Net income from discontinued operations related to fiber optic licensing operations

      313       190,621        28,117  

Net loss from discontinued operations related to telecommunication operations

      (655 )      —          (627 ) 
  

 

 

    

 

 

     

 

 

  

Net income (loss) from discontinued operations as presented in the consolidated statements of operations

    $ (342 )    $ 190,621      $ 27,490  
  

 

 

    

 

 

     

 

 

  

There were no assets or liabilities associated with fiber optic licensing operations at December 31, 2016 and no assets or non-current liabilities at December 31, 2015. The following represents a reconciliation of the carrying amounts of major classes of assets and liabilities of discontinued operations to the consolidated balance sheet at December 31, 2015 (in thousands):

 

     December 31,
2015		  

Carrying amounts of major classes of current liabilities of discontinued operations related to fiber optic licensing operations:

   

Current liabilities:

   

Accounts payable and accrued expenses

    $ 15,313  
  

 

 

  

Total current liabilities of discontinued operations as presented in the consolidated balance sheets

    $ 15,313  
  

 

 

  

Additionally, on December 3, 2012, Quanta sold substantially all of its domestic telecommunications infrastructure services operations and related subsidiaries. During the years ended December 31, 2016 and 2014, legal fees of $1.0 million were recorded related to an ongoing legal matter associated with these discontinued operations. See Legal Proceedings — Lorenzo Benton v. Telecom Network Specialists, Inc., et al. in Note 15 for additional information. The aggregate net of tax impact of these legal fees was $0.7 million and $0.6 million during the years ended December 31, 2016 and 2014.