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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Revenue Disaggregated by Geographic Location and Contract Type

The following tables present Quanta’s revenue disaggregated by geographic location, as determined by the job location, and contract type (in thousands):

						Year Ended December 31,
						2020												2019												2018
By primary geographic location:
United States						$	9,618,951					85.8		%				$	10,190,684					84.0		%				$	8,575,341					78.6		%
Canada						1,252,365						11.2		%				1,436,720						11.9		%				1,984,214						16.4		%
Australia						200,664						1.8		%				187,915						1.6		%				377,453						3.1		%
Latin America and Other						130,692						1.2		%				296,834						2.5		%				234,415						1.9		%
Total revenues						$	11,202,672					100.0		%				$	12,112,153					100.0		%				$	11,171,423					100.0		%

						Year Ended December 31,
						2020												2019												2018
By contract type:
Unit-price contracts						$	4,172,363					37.2		%				$	4,193,295					34.6		%				$	3,828,997					39.4		%
Cost-plus contracts						2,649,770						23.7		%				3,304,161						27.3		%				2,507,025						20.7		%
Fixed price contracts						4,380,539						39.1		%				4,614,697						38.1		%				4,835,401						39.9		%
Total revenues						$	11,202,672					100.0		%				$	12,112,153					100.0		%				$	11,171,423					100.0		%

Contract Assets and Liabilities

Contract assets and liabilities consisted of the following (in thousands):

						December 31, 2020						December 31, 2019						December 31, 2018
Contract assets						$	453,832					$	601,268					$	576,891
Contract liabilities						$	528,864					$	606,146					$	425,961

Composition of the Allowance for Credit Losses

Activity in Quanta’s allowance for credit losses consisted of the following (in thousands):     

						Year Ended December 31,
						2020						2019						2018
Balance at beginning of year						$	9,398					$	5,839					$	4,465
Adoption of new credit loss standard						5,067						—						—
Charges to bad debt expense						3,656						11,249						7,169
Direct write-offs charged against the allowance						(1,575)						(7,690)						(5,795)
Balance at end of year						$	16,546					$	9,398					$	5,839

Cash and Cash Equivalents

Amounts related to Quanta’s cash and cash equivalents based on geographic location of the bank accounts were as follows (in thousands):

						December 31,
						2020						2019
Cash and cash equivalents held in domestic bank accounts						$	156,122					$	130,771
Cash and cash equivalents held in foreign bank accounts						28,498						34,027
Total cash and cash equivalents						$	184,620					$	164,798

Amounts related to cash and cash equivalents held by joint ventures, which are included in Quanta’s total cash and cash equivalents balances, were as follows (in thousands):

						December 31,
						2020						2019
Cash and cash equivalents held by domestic joint ventures						$	7,714					$	6,518
Cash and cash equivalents held by foreign joint ventures						3,973						16
Total cash and cash equivalents held by joint ventures						11,687						6,534
Cash and cash equivalents not held by joint ventures						172,933						158,264
Total cash and cash equivalents						$	184,620					$	164,798

Significant Estimates Used by Management in Determining Fair Values of Intangible Assets

The following table presents the significant estimates used by management in determining the fair values of Quanta’s reporting units for which a quantitative assessment was performed at December 31, 2020, 2019 and 2018:

						2020						2019						2018
Years of cash flows before terminal value						5 years						5 years						5 years
Weighted average cost of capital						12.5% to 13.5%						12.5%						12.0% to 15.0%
Transaction multiple(s) applied to EBITDA						6.0 to 9.0						6						6.5 to 9.0
Guideline public company multiple(s) applied to EBITDA						N/A						6.5						6.5 to 9.5
Five-year revenue compounded annual growth rate(s)						-8% to 26%						-9%						-14% to 8%
Weighting of three methods:
Discounted cash flows						100%						70%						70%
Market multiple						—%						15%						15%
Market capitalization						—%						15%						15%

The following table presents the range and weighted average based on acquisition date fair value for discount and attrition rates used in the valuation of customer relationship intangible assets during the years ended December 31, 2020, 2019 and 2018:

2020

2019

2018

Range

Weighted Average

Range

Weighted Average

Range

Weighted Average

Discount rates

19% to 25%

20%

19% to 24%

24%

20% to 27%

25%

Customer attrition rates

10% to 43%

13%

5% to 37%

6%

20% to 33%

22%

Aggregate Fair Values of Outstanding and Unearned Contingent Consideration Liabilities

Aggregate fair values of these outstanding contingent consideration liabilities and their classification in the accompanying consolidated balance sheets were as follows (in thousands):

						December 31, 2020						December 31, 2019
Accounts payable and accrued expenses						$	3,466					$	77,618
Insurance and other non-current liabilities						7,503						6,542
Total contingent consideration liabilities						$	10,969					$	84,160

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