Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

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