Annual report pursuant to Section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v2.4.0.6
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