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Acquisitions (Tables) | 3 Months Ended
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Mar. 31, 2020
Business Combinations [Abstract] |
Aggregate Consideration Paid or Payable and Allocation Net Assets | The following table summarizes the aggregate consideration paid or payable as of March 31, 2020 for the acquisitions completed in 2020 and 2019 and presents the allocation of these amounts to net tangible and identifiable intangible assets based on their estimated fair values as of the respective acquisition dates, inclusive of any purchase price adjustments. These allocations require significant use of estimates and are based on information that was available to management at the time these consolidated financial statements were prepared. Quanta uses a variety of information to estimate fair values, including quoted market prices, carrying amounts and valuation techniques such as discounted cash flows. When deemed appropriate, third-party appraisal firms are engaged to assist in fair value determination of fixed assets, intangible assets and certain other assets and liabilities. Quanta is finalizing its fair value assessments for the acquired assets and assumed liabilities related to businesses acquired subsequent to March 31, 2019, and further adjustments to the purchase price allocations may occur. As of March 31, 2020, the estimated fair values of the net assets acquired were preliminary, with possible updates primarily related to pre-acquisition contingent liabilities, as further described in Legal Proceedings — Hallen Acquisition Assumed Liability in Note 11, and tax estimates. Consideration amounts are also subject to the finalization of closing working capital adjustments. The aggregate consideration paid or payable for businesses acquired between March 31, 2019 and March 31, 2020 was allocated to acquired assets and assumed liabilities, which resulted in an allocation of $87.6 million to net tangible assets, $190.0 million to identifiable intangible assets and $100.7 million to goodwill and $3.1 million to bargain purchase gain (in thousands).
|  | 2020 |  | 2019
Consideration: |  |  |  |
Cash paid or payable |  | $ | 19,377 |  |  | $ | 399,279 |
Value of Quanta common stock issued |  | 4,158 |  |  | 1,791 |
Contingent consideration |  | 2,250 |  |  | — |
Fair value of total consideration transferred or estimated to be transferred |  | $ | 25,785 |  |  | $ | 401,070 |
Accounts receivable |  | $ | 4,888 |  |  | $ | 112,142 |
Contract assets |  | — |  |  | 11,869 |
Other current assets |  | 1,691 |  |  | 14,290 |
Property and equipment |  | 6,233 |  |  | 60,133 |
Other assets |  | — |  |  | 149 |
Identifiable intangible assets |  | 4,561 |  |  | 192,786 |
Contract liabilities |  | — |  |  | (11,856 | )
Other current liabilities |  | (1,174 | ) |  | (73,698 | )
Deferred tax liabilities, net |  | (483 | ) |  | (6,398 | )
Other long-term liabilities |  | — |  |  | (5,345 | )
Total identifiable net assets |  | 15,716 |  |  | 294,072 |
Goodwill |  | 10,069 |  |  | 110,137 |
Fair value of net assets acquired |  | 25,785 |  |  | 404,209 |
Bargain purchase gain |  | — |  |  | (3,139 | )
Fair value of total consideration transferred or estimated to be transferred |  | $ | 25,785 |  |  | $ | 401,070 |
Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization | The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in 2020 as of the acquisition dates and the related weighted average amortization periods by type (in thousands, except for weighted average amortization periods, which are in years).
|  | Estimated Fair Value |  | Weighted Average Amortization Period in Years
Customer relationships |  | $ | 3,180 |  |  | 4.4
Backlog |  | 205 |  |  | 1.0
Trade names |  | 349 |  |  | 15.0
Non-compete agreements |  | 827 |  |  | 5.0
Total intangible assets subject to amortization related to acquisitions completed in 2020 |  | $ | 4,561 |  |  | 5.2
Unaudited Supplemental Pro Forma Results of Operations | The following unaudited supplemental pro forma results of operations for Quanta, which incorporates the acquisitions completed in 2020 and 2019, have been provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future. Future results may vary significantly from the results reflected in the following pro forma financial information because of future events and transactions, as well as other factors (in thousands, except per share amounts):
|  | Three Months Ended
|  | March 31,
|  | 2020 |  | 2019
Revenues |  | $ | 2,766,950 |  |  | $ | 2,968,237 |
Gross profit |  | 333,402 |  |  | 397,098 |
Selling, general and administrative expenses |  | 231,102 |  |  | 243,857 |
Amortization of intangible assets |  | 18,067 |  |  | 22,212 |
Net income |  | 42,004 |  |  | 127,083 |
Net income attributable to common stock |  | 39,187 |  |  | 126,536 |
Earnings per share: |  |  |  |
Basic |  | $ | 0.27 |  |  | $ | 0.87 |
Diluted |  | $ | 0.27 |  |  | $ | 0.86 |

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- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(3) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
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- Definition Tabular disclosure of finite-lived and indefinite-lived intangible assets acquired as part of a business combination. + References No definition available. + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=116869197&loc=d3e4845-128472 + Details
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