Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

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
Balance at December 31, 2016:
Goodwill	$	1,253,979		$	388,923		$	1,642,902
Accumulated impairment	—			(39,733		)	(39,733		)
	1,253,979			349,190			1,603,169

Goodwill acquired during 2017	5,866			305,537			311,403
Purchase price allocation adjustments	(619		)	(659		)	(1,278		)
Foreign currency translation adjustments	14,767			8,984			23,751

Balance at September 30, 2017:
Goodwill	1,273,993			703,918			1,977,911
Accumulated impairment	—			(40,866		)	(40,866		)
	$	1,273,993		$	663,052		$	1,937,045

Adjustments primarily represent changes in deferred tax liability estimates and would not have had a material impact on the consolidated financial statements in prior periods had these adjustments been booked at the respective acquisition dates.

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, an operating unit may be reorganized between divisions if its predominant business evolves.

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							As of							As of
	September 30, 2017							December 31, 2016							September 30, 2017
	Intangible Assets		Accumulated Amortization			Intangible Assets, Net		Intangible Assets		Accumulated Amortization			Intangible Assets, Net		Remaining Weighted Average Amortization Period in Years
Customer relationships	$	328,087	$	(129,000	)	$	199,087	$	244,329	$	(110,640	)	$	133,689	7.6
Backlog	136,529		(135,807		)	722		133,592		(132,441		)	1,151		1.0
Trade names	74,833		(15,929		)	58,904		54,723		(12,855		)	41,868		16.4
Non-compete agreements	37,906		(26,967		)	10,939		29,212		(25,546		)	3,666		4.2
Patented rights and developed technology	22,542		(17,176		)	5,366		22,480		(15,831		)	6,649		3.6
Total intangible assets subject to amortization	$	599,897	$	(324,879	)	$	275,018	$	484,336	$	(297,313	)	$	187,023	9.2

Amortization expense for intangible assets was $9.0 million and $8.1 million for the three months ended September 30, 2017 and 2016 and $22.0 million and $23.7 million for the nine months ended September 30, 2017 and 2016.

The estimated future aggregate amortization expense of intangible assets subject to amortization as of September 30, 2017 is set forth below (in thousands):



For the Fiscal Year Ending December 31,
Remainder of 2017	$	10,142
2018	39,381
2019	37,229
2020	35,824
2021	33,478
Thereafter	118,964
Total	$	275,018

- 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.

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