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Acquisitions (Tables) | 6 Months Ended
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Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
Aggregate Consideration Paid or Payable and Allocation Net Assets | The following table summarizes the estimated 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, 2024 for acquisitions completed in the six months ended June 30, 2024 (in thousands):
|  | June 30, 2024 |  |
Consideration: |  |  |  |  |
Cash paid or payable |  | $ | 463,884 |  |  |  |
Value of Quanta common stock issued |  | 60,821 |  |  |  |
Contingent consideration |  | 15,463 |  |  |  |
Fair value of total consideration transferred or estimated to be transferred |  | $ | 540,168 |  |  |  |
Cash and cash equivalents |  | $ | 9,176 |  |  |  |
Accounts receivable |  | 57,954 |  |  |  |
Contract assets |  | 162 |  |  |  |
Inventories |  | 38,731 |  |  |  |
Prepaid expenses and other current assets |  | 12,499 |  |  |  |
Property and equipment |  | 64,914 |  |  |  |
Operating lease right-of-use assets |  | 24,935 |  |  |  |
Other assets |  | 573 |  |  |  |
Identifiable intangible assets |  | 179,977 |  |  |  |
Current maturities of long-term debt |  | (4,431) |  |  |  |
Current portion of operating lease liabilities |  | (4,796) |  |  |  |
Accounts payable and accrued liabilities |  | (61,140) |  |  |  |
Contract liabilities |  | (390) |  |  |  |
Long-term debt, net of current maturities |  | (4,436) |  |  |  |
Operating lease liabilities, net of current portion |  | (20,140) |  |  |  |
Deferred income taxes |  | (48,869) |  |  |  |
Total identifiable net assets |  | 244,719 |  |  |  |
Goodwill |  | 295,449 |  |  |  |
Fair value of net assets acquired |  | $ | 540,168 |  |  |  |
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, 2024 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, 2024 |  |  |
|  | Estimated Fair Value |  | Weighted Average Amortization Period in Years |  |  |  |  |
Customer relationships |  | $ | 152,256 |  |  | 7.2 |  |  |  |  |
Backlog |  | 4,995 |  |  | 1.5 |  |  |  |  |
Trade names |  | 18,066 |  |  | 15.0 |  |  |  |  |
Non-compete agreements |  | 2,384 |  |  | 5.0 |  |  |  |  |
Patented rights, developed technology, process certifications and other |  | 2,276 |  |  | 15.0 |  |  |  |  |
Total intangible assets subject to amortization |  | $ | 179,977 |  |  | 7.9 |  |  |  |  |
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, 2024 as of the respective acquisition dates:
|  | Six Months Ended |  |  |  |
|  | June 30, 2024 |  |  |  |
|  | Range |  | Weighted Average |  |  |  |
Discount rates |  | 15% to 24% |  | 16% |  |  |  |
Customer attrition rates |  | 10% to 23% |  | 13% |  |  |  |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | The aggregate fair value of outstanding contingent consideration liabilities for acquisitions completed prior to June 30, 2024 and their classification in the accompanying consolidated balance sheets is as follows (in thousands):
|  | June 30, 2024 |  | December 31, 2023
Accounts payable and accrued expenses |  | $ | 152,630 |  |  | $ | — |
Insurance and other non-current liabilities |  | 16,618 |  |  | 157,073 |
Total contingent consideration liabilities |  | $ | 169,248 |  |  | $ | 157,073 |
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, 2024 and the year ended December 31, 2023, 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,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Revenues |  | $ | 5,599,509 |  |  | $ | 5,175,310 |  |  | $ | 10,645,621 |  |  | $ | 9,730,835 |
Net income attributable to common stock |  | $ | 187,445 |  |  | $ | 158,580 |  |  | $ | 303,259 |  |  | $ | 244,682 |

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- Definition Tabular disclosure of contingent payment arrangements including the terms that will result in payment and the accounting treatment that will be followed if such contingencies occur, including the potential impact on earnings per share if contingencies are to be settled in common stock of the entity. The description also may include the period over which amounts are expected to be paid, and changes in the amount since the previous reporting period. This also includes contingent options and commitments. + References No definition available. + Details
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- Definition Tabular disclosure of finite-lived intangible assets acquired as part of a business combination or through an asset purchase, by major class and in total, including the value of the asset acquired, any significant residual value (the expected value of the asset at the end of its useful life) and the weighted-average amortization period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482665/350-30-50-1 + Details
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