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Segment Information
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Information
5. SEGMENT INFORMATION:
Beginning with the three months ended December 31, 2021, Quanta reports results under three reportable segments: (1) Electric Power Infrastructure Solutions, (2) Renewable Energy Infrastructure Solutions and (3) Underground Utility and Infrastructure Solutions. The Renewable Energy Infrastructure Solutions segment was added primarily due to the acquisition of Blattner Holding Company and its operating subsidiaries (collectively, Blattner) on October 13, 2021. For additional information regarding this acquisition, see Note 6. In conjunction with this change, certain prior period amounts have been recast to conform to this new segment reporting structure. This structure is generally based on the broad end-user markets for Quanta’s services. See Note 1 for additional information regarding Quanta’s reportable segments.
Quanta’s segment results are derived from the types of services provided across its operating companies in each of its end user markets. Quanta’s entrepreneurial business model allows multiple operating companies to serve the same or similar customers and to provide a range of services across end user markets. Reportable segment information, including revenues and operating income by type of work, is gathered from each operating company for the purpose of evaluating segment performance in support of Quanta’s market strategies. Classification of operating company revenues by type of work for segment reporting purposes can require judgment on the part of management. Quanta’s operating companies may perform joint projects for customers in multiple industries, deliver multiple types of services under a single customer contract or provide service offerings to various industries. For example, Quanta performs joint trenching projects to install distribution lines for electric power and natural gas customers.
In addition, integrated operations and common administrative support for Quanta’s operating companies require that certain allocations be made to determine segment profitability, including allocations of corporate shared and indirect operating costs as well as general and administrative costs. Certain corporate costs are not allocated, including facility costs, acquisition and integration costs, non-cash stock-based compensation, amortization related to intangible assets, asset impairment related to goodwill and intangible assets and change in fair value of contingent consideration liabilities.
The following table sets forth segment revenues, segment operating income (loss) and operating margins for the three and six months ended June 31, 2022 and 2021. Operating margins are calculated by dividing operating income by revenues. The following table shows dollars in thousands:
Three Months EndedSix Months Ended
June 30,June 30,
 2022202120222021
Revenues:  
Electric Power Infrastructure Solutions$2,199,430 52.0 %$1,815,762 60.5 %$4,338,127 52.9 %$3,491,808 61.2 %
Renewable Energy Infrastructure Solutions924,236 21.8 332,013 11.1 1,799,868 22.0 716,087 12.6 
Underground Utility and Infrastructure Solutions
1,108,337 26.2 852,041 28.4 2,059,533 25.1 1,495,502 26.2 
Consolidated revenues$4,232,003 100.0 %$2,999,816 100.0 %$8,197,528 100.0 %$5,703,397 100.0 %
Operating income (loss):
  
Electric Power Infrastructure Solutions (1)
$232,150 10.6 %$206,967 11.4 %$435,569 10.0 %$360,706 10.3 %
Renewable Energy Infrastructure Solutions81,687 8.8 %29,932 9.0 %151,629 8.4 %75,228 10.5 %
Underground Utility and Infrastructure Solutions
89,943 8.1 %23,937 2.8 %138,118 6.7 %32,750 2.2 %
Corporate and Non-Allocated Costs (2)
(195,424)(4.6)%(99,185)(3.3)%(399,444)(4.9)%(193,304)(3.4)%
Consolidated operating income$208,356 4.9 %$161,651 5.4 %$325,872 4.0 %$275,380 4.8 %
(1)    Operating income for the Electric Power Infrastructure Solutions segment includes equity in earnings of integral unconsolidated affiliates that are operationally integral to the operations of Quanta, which primarily consists of equity in earnings related to Quanta’s equity interest in LUMA.
(2)    Corporate and Non-Allocated Costs for the three months ended June 30, 2022 and 2021 included amortization expense of $107.9 million and $21.3 million and non-cash stock-based compensation of $28.1 million and $23.9 million. Corporate and Non-Allocated Costs for the six months ended June 30, 2022 and 2021 included amortization expense of $223.7 million and $42.6 million and non-cash stock-based compensation of $51.1 million and $42.6 million.
Separate measures of Quanta’s assets and cash flows by reportable segment, including capital expenditures, are not produced or utilized by management to evaluate segment performance. Quanta’s fixed assets, which are held at the operating company level, include operating machinery, equipment and vehicles, office equipment, buildings and leasehold improvements, and certain fixed assets and are generally used on an interchangeable basis across its reportable segments. As such, for reporting purposes, total depreciation expense is allocated each quarter among Quanta’s reportable segments based on the ratio of each reportable segment’s revenue contribution to consolidated revenues. The following table shows dollars in thousands:
Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
Depreciation:
Electric Power Infrastructure Solutions$36,781 $34,790 $73,560 $69,194 
Renewable Energy Infrastructure Solutions10,178 2,294 18,411 4,535 
Underground Utility and Infrastructure Solutions
20,667 21,138 41,605 42,225 
Corporate and Non-Allocated Costs6,333 4,535 11,337 8,910 
Consolidated depreciation$73,959 $62,757 $144,913 $124,864 
Foreign OperationsDuring the three months ended June 30, 2022 and 2021, Quanta derived $564.7 million and $429.0 million of its revenues from foreign operations. During the six months ended June 30, 2022 and 2021, Quanta derived $1.21 billion and $926.5 million of its revenues from foreign operations. Of Quanta’s foreign revenues, 78% and 76% were earned in Canada during the three months ended June 30, 2022 and 2021 and 82% and 80% were earned in Canada during the six months ended June 30, 2022 and 2021. In addition, Quanta held property and equipment of $324.6 million and $338.1 million in foreign countries, primarily Canada, as of June 30, 2022 and December 31, 2021.