Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.2.0.727
Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
6. GOODWILL AND OTHER INTANGIBLE ASSETS:

A summary of changes in Quanta’s goodwill is as follows (in thousands):

 

     Electric Power
Division
    Oil and Gas
Infrastructure

Division
    Total  

Goodwill balance at December 31, 2014

   $ 1,223,224      $ 373,471      $ 1,596,695   

Goodwill acquired during 2015

     13,509        16,801        30,310   

Purchase price allocation adjustments

     750        (8,863     (8,113

Foreign currency translation adjustments

     (12,422     (7,816     (20,238
  

 

 

   

 

 

   

 

 

 

Goodwill balance at June 30, 2015

   $ 1,225,061      $ 373,593      $ 1,598,654   
  

 

 

   

 

 

   

 

 

 

As described in Note 2, Quanta’s operating units are organized into one of Quanta’s two internal divisions and, accordingly, Quanta’s goodwill associated with each of its operating units has been aggregated on a divisional basis and reported in the table above. These divisions are closely aligned with Quanta’s reportable segments based on the predominant type of work performed by the operating units within the divisions. From time to time, operating units may be reorganized among Quanta’s internal divisions, as Quanta periodically re-evaluates strategies to better align its operations 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, 2015     December 31, 2014     June 30, 2015  
    Intangible
Assets
    Accumulated
Amortization
    Intangible
Assets, Net
    Intangible
Assets
    Accumulated
Amortization
    Intangible
Assets, Net
    Remaining
Weighted

Average
Amortization
Period in Years
 

Customer relationships

  $ 239,329      $ (71,768   $ 167,561      $ 235,851      $ (63,764   $ 172,087        10.3   

Backlog

    132,681        (124,960     7,721        133,704        (122,265     11,439        0.9   

Trade names

    51,005        (7,682     43,323        49,664        (6,278     43,386        18.9   

Non-compete agreements

    28,245        (22,294     5,951        27,659        (21,365     6,294        3.4   

Patented rights and developed technology

    22,532        (12,785     9,747        22,073        (11,695     10,378        4.4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Total intangible assets subject to amortization

  $ 473,792      $ (239,489   $ 234,303      $ 468,951      $ (225,367   $ 243,584        11.2   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Amortization expense for intangible assets was $8.7 million and $8.2 million for the three months ended June 30, 2015 and 2014 and $17.0 million and $16.0 million for the six months ended June 30, 2015 and 2014. The estimated future aggregate amortization expense of intangible assets subject to amortization as of June 30, 2015 is set forth below (in thousands):

 

For the Fiscal Year Ending December 31,

  

Remainder of 2015

   $ 17,104   

2016

     27,571   

2017

     23,949   

2018

     23,384   

2019

     22,448   

Thereafter

     119,847   
  

 

 

 

Total

   $ 234,303