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Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS: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 below. 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 warranted due to changes in its predominant business. A summary of changes in Quanta’s goodwill is as follows (in thousands):
|  | Electric Power Infrastructure Services Division |  | Pipeline and Industrial Infrastructure Services Division |  | Total
Balance at December 31, 2018: |  |  |  |  |  |
Goodwill |  | $ | 1,313,078 |  |  | $ | 683,284 |  |  | $ | 1,996,362 |
Accumulated impairment |  | — |  |  | (96,483) |  |  | (96,483) |
|  | 1,313,078 |  | 586,801 |  | 1,899,879
Goodwill related to acquisitions completed in 2019 |  | 43,183 |  |  | 67,200 |  |  | 110,383 |
Purchase price allocation adjustments |  | 1,503 |  |  | — |  |  | 1,503 |
Foreign currency translation adjustments |  | 7,399 |  |  | 3,511 |  |  | 10,910 |
Balance at December 31, 2019: |  |  |  |  |  |
Goodwill |  | 1,365,163 |  |  | 753,938 |  |  | 2,119,101 |
Accumulated impairment |  | — |  |  | (96,426) |  |  | (96,426) |
|  | 1,365,163 |  |  | 657,512 |  |  | 2,022,675 |
Goodwill related to acquisitions completed in 2020 |  | 71,817 |  |  | 6,308 |  |  | 78,125 |
Purchase price allocation adjustments |  | 1,731 |  |  | 19 |  |  | 1,750 |
Foreign currency translation adjustments |  | (4,160) |  |  | (745) |  |  | (4,905) |
Balance at September 30, 2020: |  |  |  |  |  |
Goodwill |  | 1,434,551 |  |  | 759,776 |  |  | 2,194,327 |
Accumulated impairment |  | — |  |  | (96,682) |  |  | (96,682) |
|  | $ | 1,434,551 |  |  | $ | 663,094 |  |  | $ | 2,097,645 |
Quanta’s intangible assets and the remaining weighted average amortization periods related to its intangible assets subject to amortization were as follows (in thousands except for weighted average amortization periods, which are in years):
|  | As of |  | As of
|  | September 30, 2020 |  | December 31, 2019
|  | Remaining Weighted Average Amortization Period in Years |  | Intangible Assets |  | Accumulated Amortization |  | Intangible Assets, Net |  | Intangible Assets |  | Accumulated Amortization |  | Intangible Assets, Net
Customer relationships |  | 5.9 |  | $ | 593,998 |  |  | $ | (257,585) |  |  | $ | 336,413 |  |  | $ | 532,808 |  |  | $ | (213,915) |  |  | $ | 318,893 |
Backlog |  | 1.5 |  | 148,134 |  |  | (142,743) |  |  | 5,391 |  |  | 144,704 |  |  | (141,580) |  |  | 3,124 |
Trade names |  | 14.1 |  | 99,518 |  |  | (30,620) |  |  | 68,898 |  |  | 93,396 |  |  | (26,145) |  |  | 67,251 |
Non-compete agreements |  | 3.3 |  | 47,020 |  |  | (35,603) |  |  | 11,417 |  |  | 43,281 |  |  | (32,868) |  |  | 10,413 |
Patented rights and developed technology |  | 2.6 |  | 22,453 |  |  | (21,557) |  |  | 896 |  |  | 22,719 |  |  | (20,682) |  |  | 2,037 |
Curriculum |  | 7.7 |  | 11,712 |  |  | (2,805) |  |  | 8,907 |  |  | 11,712 |  |  | (2,696) |  |  | 9,016 |
Total intangible assets subject to amortization |  | 7.1 |  | 922,835 |  |  | (490,913) |  |  | 431,922 |  |  | 848,620 |  |  | (437,886) |  |  | 410,734 |
Engineering license |  |  |  | 3,000 |  |  | — |  |  | 3,000 |  |  | 3,000 |  |  | — |  |  | 3,000 |
Total intangible assets |  |  |  | $ | 925,835 |  |  | $ | (490,913) |  |  | $ | 434,922 |  |  | $ | 851,620 |  |  | $ | (437,886) |  |  | $ | 413,734 |
Amortization expense for intangible assets was $19.7 million and $15.3 million for the three months ended September 30, 2020 and 2019 and $55.4 million and $40.5 million for the nine months ended September 30, 2020 and 2019. The estimated future aggregate amortization expense of intangible assets subject to amortization as of September 30, 2020 is set forth below (in thousands):
Year Ending December 31: |  |
Remainder of 2020 |  | $ | 20,932 |
2021 |  | 81,369 |
2022 |  | 73,742 |
2023 |  | 64,963 |
2024 |  | 52,022 |
Thereafter |  | 138,894 |
Total |  | $ | 431,922 |

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