Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v2.4.0.6
Segment Information
3 Months Ended
Mar. 31, 2012
Segment Information [Abstract]  
SEGMENT INFORMATION
11.

SEGMENT INFORMATION:

Quanta presents its operations under four reportable segments: (1) Electric Power Infrastructure Services, (2) Natural Gas and Pipeline Infrastructure Services, (3) Telecommunications Infrastructure Services and (4) Fiber Optic Licensing. This structure is generally focused on broad end-user markets for Quanta’s services. See Note 1 for additional information regarding Quanta’s reportable segments.

Quanta’s segment results are derived from the types of services provided across its operating units in each of the end user markets described above. Quanta’s entrepreneurial business model allows each of its operating units to serve the same or similar customers and to provide a range of services across end user markets. Quanta’s operating units are organized into one of three internal divisions, namely, the electric power division, natural gas and pipeline division and telecommunications division. These internal divisions are closely aligned with the reportable segments described above based on their operating units’ predominant type of work, with the operating units providing predominantly telecommunications and fiber optic licensing services being managed within the same internal division.

Reportable segment information, including revenues and operating income by type of work, is gathered from each operating unit for the purpose of evaluating segment performance in support of Quanta’s market strategies. These classifications of Quanta’s operating unit revenues by type of work for segment reporting purposes can at times require judgment on the part of management. Quanta’s operating units may perform joint infrastructure service projects for customers in multiple industries, deliver multiple types of network services under a single customer contract or provide services across industries, for example, joint trenching projects to install distribution lines for electric power, natural gas and telecommunications customers.

In addition, Quanta’s integrated operations and common administrative support at each of its operating units requires certain allocations, including allocations of shared and indirect costs, such as facility costs, indirect operating expenses, including depreciation, and general and administrative costs, to determine operating segment profitability. Corporate costs, such as payroll and benefits, employee travel expenses, facility costs, professional fees, acquisition costs and amortization related to certain intangible assets are not allocated.

 

Summarized financial information for Quanta’s reportable segments is presented in the following tables (in thousands):

 

 

                 
    Three Months Ended
March 31,
 
    2012     2011  

Revenues:

               

Electric Power

  $ 933,321     $ 566,461  

Natural Gas and Pipeline

    358,860       176,823  

Telecommunications

    105,953       79,393  

Fiber Optic Licensing

    27,043       26,282  
   

 

 

   

 

 

 

Consolidated

  $ 1,425,177     $ 848,959  
   

 

 

   

 

 

 
     

Operating income (loss):

               

Electric Power

  $ 109,324     $ 29,315  

Natural Gas and Pipeline

    (10,959     (37,015

Telecommunications

    8,420       (3,622

Fiber Optic Licensing

    13,609       12,035  

Corporate and non-allocated costs

    (40,919     (27,629
   

 

 

   

 

 

 

Consolidated

  $ 79,475     $ (26,916
   

 

 

   

 

 

 

Depreciation:

               

Electric Power

  $ 13,450     $ 12,434  

Natural Gas and Pipeline

    10,392       9,875  

Telecommunications

    1,721       1,398  

Fiber Optic Licensing

    3,417       3,418  

Corporate and non-allocated costs

    1,627       1,071  
   

 

 

   

 

 

 

Consolidated

  $ 30,607     $ 28,196  
   

 

 

   

 

 

 

Separate measures of Quanta’s assets and cash flows by reportable segment, including capital expenditures, are not produced or utilized by management to evaluate segment performance. Quanta’s fixed assets which are held at the operating unit level, including operating machinery, equipment and vehicles, as well as office equipment, buildings and leasehold improvements, are used on an interchangeable basis across its reportable segments. As such, for reporting purposes, total depreciation expense is allocated each quarter among Quanta’s reportable segments based on the ratio of each reportable segment’s revenue contribution to consolidated revenues.

Foreign Operations

During the three months ended March 31, 2012 and 2011, Quanta derived $249.8 million and $109.3 million of its revenues from foreign operations. Of Quanta’s foreign revenues, approximately 96% was earned in Canada during each of the three months ended March 31, 2012 and 2011. In addition, Quanta held property and equipment of $115.7 million and $114.8 million in foreign countries, primarily Canada, as of March 31, 2012 and December 31, 2011.