Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.21.1
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
Revenue Disaggregated by Geographic Location and Contract Type
The following tables present Quanta’s revenue disaggregated by geographic location, as determined by the job location, and contract type (in thousands):
Three Months Ended March 31,
2021 2020
By primary geographic location:
United States $ 2,206,116  81.6  % $ 2,268,086  82.1  %
Canada 413,846  15.3  % 384,225  13.9  %
Australia 55,107  2.0  % 51,050  1.8  %
Others 28,512  1.1  % 60,734  2.2  %
Total revenues $ 2,703,581  100.0  % $ 2,764,095  100.0  %

Three Months Ended March 31,
2021 2020
By contract type:
Unit-price contracts $ 976,562  36.1  % $ 974,651  35.3  %
Cost-plus contracts 662,772  24.5  % 688,084  24.9  %
Fixed price contracts 1,064,247  39.4  % 1,101,360  39.8  %
Total revenues $ 2,703,581  100.0  % $ 2,764,095  100.0  %
Contract Assets and Liabilities
Contract assets and liabilities consisted of the following (in thousands):
March 31, 2021 December 31, 2020
Contract assets $ 518,256  $ 453,832 
Contract liabilities $ 499,527  $ 528,864 
Composition of the Allowance for Credit Losses
Activity in Quanta’s allowance for credit losses consisted of the following (in thousands):
  Three Months Ended
March 31,
  2021 2020
Balance at beginning of period $ 16,546  $ 9,398 
Cumulative effect of adoption of new credit loss standard —  5,067 
Provision for credit losses 43  273 
Direct write-offs charged against the allowance (140) (292)
Balance at end of period $ 16,449  $ 14,446 
Cash and Cash Equivalents
Amounts related to Quanta’s cash and cash equivalents based on geographic location of the bank accounts were as follows (in thousands):
  March 31, 2021 December 31, 2020
Cash and cash equivalents held in domestic bank accounts $ 170,128  $ 156,122 
Cash and cash equivalents held in foreign bank accounts 30,090  28,498 
Total cash and cash equivalents $ 200,218  $ 184,620 
Amounts related to cash and cash equivalents held by joint ventures and the captive insurance company, which are included in Quanta’s total cash and cash equivalents balances, were as follows (in thousands):
  March 31, 2021 December 31, 2020
Cash and cash equivalents held by domestic joint ventures $ 4,091  $ 7,714 
Cash and cash equivalents held by foreign joint ventures 3,780  3,973 
Total cash and cash equivalents held by joint ventures 7,871  11,687 
Cash and cash equivalents held by captive insurance company 131,839  85,014 
Cash and cash equivalents not held by joint ventures or captive insurance company 60,508  87,919 
Total cash and cash equivalents $ 200,218  $ 184,620 
Significant Estimates Used by Management in Determining Fair Values of Intangible Assets The following table presents the rates during the three months ended March 31, 2021 and the ranges of rates and weighted average rates for the year ended December 31, 2020 based on acquisition date fair values for discount and attrition rates used in the valuation of customer relationship intangible assets:
  2021 2020
Rate Range Weighted Average
Discount rates
22%
19% to 25%
 20%
Customer attrition rates
25%
10% to 43%
 13%
Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses consisted of the following (in thousands):
  March 31, 2021 December 31, 2020
Accounts payable, trade $ 842,110  $ 798,023 
Accrued compensation and related expenses 353,391  378,002 
Other accrued expenses 310,524  333,769 
Accounts payable and accrued expenses $ 1,506,025  $ 1,509,794