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Segment Information | 9 Months Ended
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Sep. 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 nine months ended September 30, 2022 and 2021. Operating margins are calculated by dividing operating income by revenues. The following table shows dollars in thousands:
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, |  | September 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Electric Power Infrastructure Solutions |  | $ | 2,282,332 |  |  | 51.2 | % |  | $ | 1,996,789 |  |  | 59.5 | % |  | $ | 6,620,459 |  |  | 52.3 | % |  | $ | 5,488,597 |  |  | 60.6 | %
Renewable Energy Infrastructure Solutions |  | 978,779 |  |  | 21.9 |  |  | 331,679 |  |  | 9.9 |  |  | 2,778,647 |  |  | 22.0 |  |  | 1,047,766 |  |  | 11.6 |
Underground Utility and Infrastructure Solutions |  | 1,198,646 |  |  | 26.9 |  |  | 1,024,810 |  |  | 30.6 |  |  | 3,258,179 |  |  | 25.7 |  |  | 2,520,312 |  |  | 27.8 |
Consolidated revenues |  | $ | 4,459,757 |  |  | 100.0 | % |  | $ | 3,353,278 |  |  | 100.0 | % |  | $ | 12,657,285 |  |  | 100.0 | % |  | $ | 9,056,675 |  |  | 100.0 | %
Operating income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Electric Power Infrastructure Solutions (1) |  | $ | 255,457 |  |  | 11.2 | % |  | $ | 252,415 |  |  | 12.6 | % |  | $ | 691,026 |  |  | 10.4 | % |  | $ | 613,121 |  |  | 11.2 | %
Renewable Energy Infrastructure Solutions |  | 88,885 |  |  | 9.1 | % |  | 35,868 |  |  | 10.8 | % |  | 240,514 |  |  | 8.7 | % |  | 111,096 |  |  | 10.6 | %
Underground Utility and Infrastructure Solutions |  | 101,351 |  |  | 8.5 | % |  | 68,167 |  |  | 6.7 | % |  | 239,469 |  |  | 7.3 | % |  | 100,917 |  |  | 4.0 | %
Corporate and Non-Allocated Costs (2) |  | (158,902) |  |  | (3.6) | % |  | (108,373) |  |  | (3.2) | % |  | (558,346) |  |  | (4.4) | % |  | (301,677) |  |  | (3.3) | %
Consolidated operating income |  | $ | 286,791 |  |  | 6.4 | % |  | $ | 248,077 |  |  | 7.4 | % |  | $ | 612,663 |  |  | 4.8 | % |  | $ | 523,457 |  |  | 5.8 | %
(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 Energy, LLC (LUMA). (2) Corporate and Non-Allocated Costs for the three months ended September 30, 2022 and 2021 included amortization expense of $67.1 million and $22.8 million and non-cash stock-based compensation of $26.6 million and $21.6 million. Corporate and Non-Allocated Costs for the nine months ended September 30, 2022 and 2021 included amortization expense of $290.8 million and $65.4 million and non-cash stock-based compensation of $77.7 million and $64.3 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 primarily held at the operating company level, include operating machinery, equipment and vehicles, office equipment, buildings and leasehold improvements, 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 Ended |  | Nine Months Ended
|  | September 30, |  | September 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Depreciation: |  |  |  |  |  |  |  |
Electric Power Infrastructure Solutions |  | $ | 35,896 |  |  | $ | 34,859 |  |  | $ | 109,456 |  |  | $ | 104,053 |
Renewable Energy Infrastructure Solutions |  | 11,214 |  |  | 2,338 |  |  | 29,625 |  |  | 6,873 |
Underground Utility and Infrastructure Solutions |  | 20,311 |  |  | 20,958 |  |  | 61,916 |  |  | 63,183 |
Corporate and Non-Allocated Costs |  | 6,086 |  |  | 3,461 |  |  | 17,423 |  |  | 12,371 |
Consolidated depreciation |  | $ | 73,507 |  |  | $ | 61,616 |  |  | $ | 218,420 |  |  | $ | 186,480 |
Foreign Operations During the three months ended September 30, 2022 and 2021, Quanta derived $699.7 million and $460.8 million of its revenues from foreign operations. During the nine months ended September 30, 2022 and 2021, Quanta derived $1.91 billion and $1.39 billion of its revenues from foreign operations. Of Quanta’s foreign revenues, 73% and 83% were earned in Canada during the three months ended September 30, 2022 and 2021 and 79% and 81% were earned in Canada during the nine months ended September 30, 2022 and 2021. In addition, Quanta held property and equipment, net of $298.2 million and $338.1 million in foreign countries, primarily Canada, as of September 30, 2022 and December 31, 2021.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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