Quanta Services, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

Significant Estimates Used by Management in Determining Fair Values of Company's Reporting Units

The following table presents the significant estimates used by management in determining the fair values of Quanta’s reporting units at December 31, 2012, 2011 and 2010:


	Operating Units Providing Predominantly Electric Power and Natural Gas and Pipeline Infrastructure Services			Operating Unit Providing Fiber Optic Licensing
	2012	2011	2010	2012	2011	2010
Years of cash flows before terminal value	5	5	5	15	15	15
Discount rates	12% to 13%	13%	15%	12%	14%	14%
EBITDA multiples	4.5 to 8.0	4.5 to 8.0	4.5 to 8.0	9.5	9.5	9.5
Weighting of three approaches:
Discounted cash flows	70%	70%	70%	90%	90%	90%
Market multiple	15%	15%	15%	5%	5%	5%
Market capitalization	15%	15%	15%	5%	5%	5%

Minimum Future Licensing Revenues

Minimum future licensing revenues expected to be recognized by Quanta pursuant to these agreements at December 31, 2012 are as follows (in thousands):


	Minimum Future Licensing Revenues
Year Ending December 31 —
2013	$	84,104
2014		62,014
2015		40,234
2016		31,277
2017		23,443
Thereafter		125,225

Fixed non-cancelable minimum licensing revenues	$	366,297