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 $1.00 billion in cash, resulting in estimated after-tax net proceeds of $848.2 million. In the third quarter of 2015, Quanta recognized a pre-tax gain of $271.8 million and a corresponding tax expense of $100.8 million, which resulted in a gain on the sale, net of tax, of $171.0 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 accompanying consolidated statements of operations (in thousands):



	Year Ended December 31,
	2016			2015
Major classes of line items constituting pretax income from discontinued operations:
Revenues	$	—		$	59,998
Expenses:
Cost of services (including depreciation)	—			24,748
Selling, general and administrative expenses	(980		)	12,047
Amortization of intangible assets	—			963

Other income (expense) items that are not major	—			10
Net income before taxes of discontinued operations related to fiber optic licensing operations related to major classes of income before taxes	980			22,250
Pretax gain on the disposal of the fiber optic licensing operations	—			271,833
Total pretax gain on fiber optic licensing operations	980			294,083
Provision for income taxes related to fiber optic licensing operations	667			103,462
Net income from discontinued operations related to fiber optic licensing operations	313			190,621
Net loss from discontinued operations related to telecommunication operations	(655		)	—
Net income (loss) from discontinued operations as presented in the accompanying consolidated statements of operations	$	(342	)	$	190,621

There were no assets or liabilities associated with fiber optic licensing operations at December 31, 2017 or 2016.

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, 2016, 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 during the year ended December 31, 2016.