Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.7.0.1
Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
GOODWILL AND OTHER INTANGIBLE ASSETS:
A summary of changes in Quanta’s goodwill is as follows (in thousands):
 
Electric Power Infrastructure Services
Division
 
Oil and Gas Infrastructure Services
Division
 
Total
Balance at December 31, 2016:
 
 
 
 
 
     Goodwill
$
1,253,979

 
$
388,923

 
$
1,642,902

     Accumulated impairment

 
(39,733
)
 
(39,733
)
 
1,253,979

 
349,190

 
1,603,169

 
 
 
 
 
 
Goodwill acquired during 2017
1,484

 

 
1,484

Purchase price allocation adjustments
(619
)
 
(659
)
 
(1,278
)
Foreign currency translation adjustments
7,892

 
5,050

 
12,942

 
 
 
 
 
 
Balance at June 30, 2017:
 
 
 
 
 
     Goodwill
1,262,736

 
394,186

 
1,656,922

     Accumulated impairment

 
(40,605
)
 
(40,605
)
 
$
1,262,736

 
$
353,581

 
$
1,616,317


Adjustments primarily represent changes in deferred tax liability estimates and would not have had a material impact on the consolidated financial statements in prior periods had these adjustments been booked at the respective acquisition dates.
Also, as described in Note 2, Quanta’s operating units are organized into one of Quanta’s two internal divisions and, accordingly, the goodwill associated with the operating units has been aggregated on a divisional basis in the table above. These divisions are closely aligned with Quanta’s reportable segments and operating units are assigned to a division based on the predominant type of work performed. From time to time, operating units may be reorganized between divisions as business environments evolve.
Quanta’s intangible assets subject to amortization and the remaining weighted average amortization periods related to such assets were as follows (in thousands except for weighted average amortization periods, which are in years):
 
As of
 
As of
 
As of
 
June 30, 2017
 
December 31, 2016
 
June 30, 2017
 
Intangible
Assets
 
Accumulated
Amortization
 
Intangible
Assets, Net
 
Intangible
Assets
 
Accumulated
Amortization
 
Intangible
Assets, Net
 
Remaining Weighted Average Amortization Period in Years
Customer relationships
$
254,989

 
$
(121,292
)
 
$
133,697

 
$
244,329

 
$
(110,640
)
 
$
133,689

 
8.2
Backlog
134,967

 
(134,295
)
 
672

 
133,592

 
(132,441
)
 
1,151

 
0.7
Trade names
55,439

 
(14,708
)
 
40,731

 
54,723

 
(12,855
)
 
41,868

 
17.3
Non-compete agreements
29,958

 
(26,470
)
 
3,488

 
29,212

 
(25,546
)
 
3,666

 
2.9
Patented rights and developed technology
22,508

 
(16,721
)
 
5,787

 
22,480

 
(15,831
)
 
6,649

 
3.7
Total intangible assets subject to amortization
$
497,861

 
$
(313,486
)
 
$
184,375

 
$
484,336

 
$
(297,313
)
 
$
187,023

 
9.9

Amortization expense for intangible assets was $6.5 million and $8.1 million for the three months ended June 30, 2017 and 2016 and $13.1 million and $15.6 million for the six months ended June 30, 2017 and 2016.
The estimated future aggregate amortization expense of intangible assets subject to amortization as of June 30, 2017 is set forth below (in thousands):
For the Fiscal Year Ending December 31,
 

Remainder of 2017
$
13,618

2018
26,061

2019
24,015

2020
22,705

2021
20,368

Thereafter
77,608

Total
$
184,375