Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.19.2
Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets GOODWILL AND OTHER INTANGIBLE ASSETS:
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 below. 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, an operating unit may be reorganized between divisions if warranted due to changes in its predominant business.
A summary of changes in Quanta’s goodwill is as follows (in thousands):
 
 
Electric Power Infrastructure Services
Division
 
Pipeline and Industrial Infrastructure Services
Division
 
Total
Balance at December 31, 2017:
 
 
 
 
 
 
Goodwill
 
$
1,272,527

 
$
693,905

 
$
1,966,432

Accumulated impairment
 

 
(97,832
)
 
(97,832
)
 
 
1,272,527
 
596,073
 
1,868,600
 
 
 
 
 
 
 
Goodwill related to acquisitions completed in 2018
 
56,337

 

 
56,337

Purchase price allocation adjustments
 
51

 

 
51

Foreign currency translation adjustments
 
(15,837
)
 
(9,272
)
 
(25,109
)
 
 
 
 
 
 
 
Balance at December 31, 2018:
 
 
 
 
 
 
Goodwill
 
1,313,078

 
683,284

 
1,996,362

Accumulated impairment
 

 
(96,483
)
 
(96,483
)
 
 
1,313,078

 
586,801

 
1,899,879

 
 
 
 
 
 
 
Goodwill related to acquisitions completed in 2019
 
21,909

 

 
21,909

Purchase price allocation adjustments
 
1,503

 

 
1,503

Foreign currency translation adjustments
 
6,116

 
2,893

 
9,009

 
 
 
 
 
 
 
Balance at June 30, 2019:
 
 
 
 
 
 
Goodwill
 
1,342,606

 
686,123

 
2,028,729

Accumulated impairment
 

 
(96,429
)
 
(96,429
)
 
 
$
1,342,606

 
$
589,694

 
$
1,932,300


Quanta’s intangible assets and the remaining weighted average amortization periods related to its intangible assets subject to amortization were as follows (in thousands except for weighted average amortization periods, which are in years):
 
 
As of
 
As of
 
As of
 
 
June 30, 2019
 
December 31, 2018
 
June 30, 2019
 
 
Intangible
Assets
 
Accumulated
Amortization
 
Intangible
Assets, Net
 
Intangible
Assets
 
Accumulated
Amortization
 
Intangible
Assets, Net
 
Remaining Weighted Average Amortization Period in Years
Customer relationships
 
$
369,050

 
$
(187,450
)
 
$
181,600

 
$
359,967

 
$
(165,715
)
 
$
194,252

 
5.7
Backlog
 
137,256

 
(136,433
)
 
823

 
135,578

 
(134,592
)
 
986

 
0.6
Trade names
 
82,454

 
(24,286
)
 
58,168

 
81,058

 
(21,559
)
 
59,499

 
15.0
Non-compete agreements
 
40,902

 
(30,902
)
 
10,000

 
40,728

 
(30,168
)
 
10,560

 
3.1
Patented rights and developed technology
 
22,532

 
(19,939
)
 
2,593

 
22,482

 
(19,175
)
 
3,307

 
2.4
Curriculum
 
9,448

 
(1,348
)
 
8,100

 
9,448

 
(872
)
 
8,576

 
8.6
Total intangible assets subject to amortization
 
661,642

 
(400,358
)
 
261,284

 
649,261

 
(372,081
)
 
277,180

 
7.7
Engineering license
 
3,000

 

 
3,000

 
3,000

 

 
3,000

 
 
  Total intangible assets
 
$
664,642

 
$
(400,358
)
 
$
264,284

 
$
652,261

 
$
(372,081
)
 
$
280,180

 
 

Amortization expense for intangible assets was $12.6 million and $10.5 million for the three months ended June 30, 2019 and 2018 and $25.3 million and $20.9 million for the six months ended June 30, 2019 and 2018.
The estimated future aggregate amortization expense of intangible assets subject to amortization as of June 30, 2019 is set forth below (in thousands):
Year Ending December 31:
 
 

Remainder of 2019
 
$
24,410

2020
 
46,770

2021
 
44,247

2022
 
40,474

2023
 
32,358

Thereafter
 
73,025

Total
 
$
261,284