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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Aggregate Consideration Paid or Payable and Allocation Net Assets

The following table summarizes the fair value of total consideration transferred or estimated to be transferred and the fair value of assets acquired and liabilities assumed as of their respective acquisition dates as of June 30, 2023 for acquisitions completed in the six months ended June 30, 2023 (in thousands):

						Six Months Ended
						June 30, 2023
Consideration:
Cash paid or payable						$	463,482
Value of Quanta common stock issued						123,503
Fair value of total consideration transferred or estimated to be transferred						$	586,985
Cash and cash equivalents						$	14,832
Accounts receivable						46,389
Contract assets						195
Inventories						56,960
Prepaid expenses and other current assets						4,392
Property and equipment						144,217
Operating lease assets						14,189
Other assets						4,553
Identifiable intangible assets						107,430
Accounts payable and accrued liabilities						(61,739)
Contract liabilities						(3,071)
Operating lease liabilities, current						(2,552)
Deferred tax liabilities, net						(20,556)
Operating lease liabilities, non-current						(12,242)
Total identifiable net assets						292,997
Goodwill						293,988
Fair value of net assets acquired						$	586,985

Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization

The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in the six months ended June 30, 2023 as of the acquisition dates and the related weighted average amortization periods by type (in thousands, except for weighted average amortization periods, which are in years).    

						Six Months Ended
						June 30, 2023
						Estimated Fair Value						Weighted Average Amortization Period in Years
Customer relationships						$	79,240					4.6
Backlog						11,095						0.9
Trade names						12,615						15.0
Non-compete agreements						4,480						5.0
Total intangible assets subject to amortization						$	107,430					5.5

Discount Rates and Customer Attrition Rates

The following table includes the discount rates and

customer attrition rates used to determine the fair value of customer relationship intangible assets for businesses acquired during the six months ended June 30, 2023 as of the respective acquisition dates:

Six Months Ended

June 30, 2023

Range

Weighted Average

Discount rates

15% to 19%

17%

Customer attrition rates

10% to 20%

18%

Aggregate Fair Values of Outstanding and Unearned Contingent Consideration Liabilities

The aggregate fair value of these outstanding contingent consideration liabilities and their classification in the accompanying consolidated balance sheets is as follows (in thousands):

						June 30, 2023						December 31, 2022
Accounts payable and accrued expenses						$	—					$	5,000
Insurance and other non-current liabilities						143,517						143,517
Total contingent consideration liabilities						$	143,517					$	148,517

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

The following table includes the volatility factors, weighted average costs of capital and discount rates used to determine the fair value of contingent consideration liabilities during the six months ended June 30, 2023:

Six Months Ended

June 30, 2023

Range

Weighted Average

Volatility factors

35.0% to 43.0%

35.2%

Weighted average cost of capital

14.0% to 15.50%

14.0%

Discount rates

4.06% to 6.90%

6.5%

Unaudited Supplemental Pro Forma Results of Operations

The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in the six months ended June 30, 2023 and the year ended December 31, 2022, have been provided for illustrative purposes only and may not be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future (in thousands).

						Three Months Ended												Six Months Ended
						June 30,												June 30,
						2023						2022						2023						2022
Revenues						$	5,048,610					$	4,358,240					$	9,477,436					$	8,450,003
Net income attributable to common stock						$	165,899					$	88,671					$	260,945					$	173,129

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References

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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)(2)
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-Topic 805
-Publisher FASB
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Tabular disclosure of finite-lived and indefinite-lived intangible assets acquired as part of a business combination.

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