Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v2.4.0.6
Goodwill and Other Intangible Assets
3 Months Ended
Mar. 31, 2012
Goodwill and Other Intangible Assets [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
5.

GOODWILL AND OTHER INTANGIBLE ASSETS:

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

 

 

                                 
    Electric  Power
Division
    Natural Gas  and
Pipeline
Division
    Telecommunications
Division
    Total  

Balance at December 31, 2011:

                               

Goodwill

  $ 988,702     $ 113,598     $ 562,174     $ 1,664,474  

Accumulated impairment

                (63,264     (63,264
   

 

 

   

 

 

   

 

 

   

 

 

 

Goodwill, net

    988,702       113,598       498,910       1,601,210  

Goodwill acquired during 2012

    34,968       7,328             42,296  

Foreign currency translation related to goodwill

    2,939       178             3,117  
   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at March 31, 2012

                               

Goodwill

    1,026,609       121,104       562,174       1,709,887  

Accumulated impairment

                (63,264     (63,264
   

 

 

   

 

 

   

 

 

   

 

 

 

Goodwill, net

  $ 1,026,609     $ 121,104     $ 498,910     $ 1,646,623  
   

 

 

   

 

 

   

 

 

   

 

 

 

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. 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.

Activity in Quanta’s intangible assets consists of the following (in thousands):

 

 

                                                         
    As of
December 31, 2011
    Three Months Ended
March 31, 2012
    As of
March 31, 2012
 
    Intangible
Assets
    Accumulated
Amortization
    Amortization
Expense
    Additions     Foreign
Currency
Adjustments
    Intangible
Assets,
Net
    Remaining
Weighted
Average
Amortization
Period in
Years
 

Customer relationships

  $ 171,893     $ (38,158   $ (2,888   $ 2,851     $ 617     $ 134,315       11.8  

Backlog

    121,779       (101,153     (3,876     1,866       421       19,037       1.6  

Trade names

    29,661       (1,948     (256     958       127       28,542       27.9  

Non-compete agreements

    27,414       (17,604     (1,891     1,346       104       9,369       3.4  

Patented rights and developed technology

    16,378       (5,538     (483     3,020             13,377       7.3  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

         

Total intangible assets subject to amortization

    367,125       (164,401     (9,394     10,041       1,269       204,640       12.4  

Other intangible assets not subject to amortization

    4,500                               4,500       N/A  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

         

Total intangible assets

  $ 371,625     $ (164,401   $ (9,394   $ 10,041     $ 1,269     $ 209,140       N/A  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

         

 

Amortization expense for intangible assets was $9.4 million and $6.3 million for the three months ended March 31, 2012 and 2011. The estimated future aggregate amortization expense of intangible assets as of March 31, 2012 is set forth below (in thousands):

 

 

         

For the Fiscal Year Ending December 31 —

       

Remainder of 2012

  $ 25,895  

2013

    20,384  

2014

    18,324  

2015

    15,978  

2016

    15,105  

Thereafter

    108,954  
   

 

 

 

Total

  $ 204,640