Investments in Affiliates and Other Entities

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investments in Affiliates and Other Entities

6. INVESTMENTS IN AFFILIATES AND OTHER ENTITIES:

Equity Investments

The following table presents Quanta’s equity investments by type (in thousands):


	March 31, 2023		December 31, 2022
Equity method investments - integral unconsolidated affiliates	$	98,762	$	101,251
Equity method investments - non-integral unconsolidated affiliates	29,088		55,833
Marketable equity securities	—		—
Non-marketable equity securities	54,152		54,134
Total equity investments	$	182,002	$	211,218

Equity Method Investments

During the three months ended December 31, 2022, Quanta entered into an agreement to sell one of its non-integral equity method investments. The transaction was subject to certain customary closing conditions that were satisfied in early 2023. As a result, a $25.9 million gain was recognized in the fourth quarter of 2022, $10.4 million of which is attributable to non-controlling interests. During the three months ended March 31, 2023, Quanta received cash of $56.6 million related to the sale of this investment, $8.7 million of which was distributed to non-controlling interests.

As of March 31, 2023 and December 31, 2022, Quanta had receivables of $21.3 million and $96.9 million from its integral affiliates and payables of $8.7 million and $9.3 million to its integral affiliates. During the three months ended March 31, 2023 and 2022, Quanta recognized revenues of $48.3 million and $25.1 million from services provided to its integral affiliates, primarily for services provided to LUMA at cost. In addition, during the three months ended March 31, 2023 and 2022, Quanta recognized costs of sales of $12.0 million and $50.4 million for services provided by other integral affiliates.

Total equity in earnings from integral unconsolidated affiliates were $9.6 million and $15.2 million for the three months ended March 31, 2023 and 2022. Total equity in earnings from non-integral unconsolidated affiliates were $1.6 million and $5.3 million for the three months ended March 31, 2023 and 2022 and included in “Other income (expense), net” in the accompanying condensed consolidated statements of income. As of March 31, 2023, retained earnings included $19.6 million related to the undistributed earnings of unconsolidated affiliates.

Marketable and Non-Marketable Equity Securities

As of March 31, 2023 and December 31, 2022, the fair value of Quanta’s investment in equity securities of Starry Group Holdings, Inc. (Starry) was zero and the unrealized loss related to these securities was $91.5 million.