Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

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Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2011
Goodwill and Other Intangible Assets [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
 
4.   GOODWILL AND OTHER INTANGIBLE ASSETS:
 
A summary of changes in Quanta’s goodwill between December 31, 2010 and June 30, 2011 is as follows (in thousands):
 
                                 
          Natural Gas and
             
    Electric Power
    Pipeline
    Telecommunications
       
    Division     Division     Division     Total  
 
Balance at December 31, 2010:
                               
Goodwill
  $ 741,276     $ 337,911     $ 545,232     $ 1,624,419  
Accumulated impairment
                (63,264 )     (63,264 )
                                 
Goodwill, net
    741,276       337,911       481,968       1,561,155  
Foreign currency translation related to goodwill
    2,766                   2,766  
Operating unit reorganization
          (16,942 )     16,942        
Purchase price adjustments related to prior periods
          (50 )           (50 )
                                 
Balance at June 30, 2011:
                               
Goodwill
    744,042       320,919       562,174       1,627,135  
Accumulated impairment
                (63,264 )     (63,264 )
                                 
Goodwill, net
  $ 744,042     $ 320,919     $ 498,910     $ 1,563,871  
                                 
 
As described in Note 2, Quanta’s operating units are organized into one of Quanta’s three 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.
 
Intangible assets are comprised of (in thousands):
 
                                                 
    As of
    Six Months Ended
    As of
 
    December 31, 2010     June 30, 2011     June 30, 2011  
                            Foreign
       
    Intangible
    Accumulated
    Amortization
          Currency
    Intangible
 
    Assets     Amortization     Expense     Additions     Adjustments     Assets, Net  
 
Customer relationships
  $ 153,100     $ (27,880 )   $ (5,045 )   $     $ 595     $ 120,770  
Backlog
    108,421       (88,429 )     (4,907 )           306       15,391  
Trade names
    27,249       (1,005 )     (455 )           84       25,873  
Non-compete agreements
    23,954       (13,164 )     (2,097 )           62       8,755  
Patented rights and developed technology
    16,078       (4,257 )     (633 )                 11,188  
                                                 
Total intangible assets subject to amortization
    328,802       (134,735 )     (13,137 )           1,047       181,977  
Other intangible assets not subject to amortization
                      4,500             4,500  
                                                 
Total intangible assets
  $ 328,802     $ (134,735 )   $ (13,137 )   $ 4,500     $ 1,047     $ 186,477  
                                                 
 
Expenses for the amortization of intangible assets were $6.9 million and $9.1 million for the three months ended June 30, 2011 and 2010 and $13.1 million and $14.9 million for the six months ended June 30, 2011 and 2010. The remaining weighted average amortization period for all intangible assets as of June 30, 2011 is 12.6 years, while the remaining weighted average amortization periods for customer relationships, backlog, trade names, non-compete agreements and the patented rights and developed technology are 12.1 years, 1.9 years, 28.4 years, 2.8 years and 9.3 years, respectively. The estimated future aggregate amortization expense of intangible assets as of June 30, 2011 is set forth below (in thousands):
 
         
For the Fiscal Year Ending December 31 —
       
2011 (Remainder)
  $ 13,038  
2012
    24,278  
2013
    14,209  
2014
    13,609  
2015
    12,829  
Thereafter
    104,014  
         
Total intangible assets subject to amortization
  $ 181,977