GOODWILL AND OTHER INTANGIBLE ASSETS |
5. |
GOODWILL AND OTHER INTANGIBLE ASSETS: |
A summary of changes in Quanta’s goodwill is as follows (in thousands):
|
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|
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|
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|
|
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|
Electric
Power Division
|
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|
Natural Gas
and Pipeline Division
|
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|
Telecommunications Division
|
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|
Total |
|
Balance at December 31, 2011:
|
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|
|
|
|
|
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|
|
|
|
|
|
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
|
|
|
57,451 |
|
|
|
7,328 |
|
|
|
— |
|
|
|
64,779 |
|
Foreign currency translation related to goodwill
|
|
|
(864 |
) |
|
|
(163 |
) |
|
|
— |
|
|
|
(1,027 |
) |
|
|
|
|
|
|
|
|
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|
|
|
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|
|
|
|
Balance at June 30, 2012
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|
|
|
|
|
|
Goodwill
|
|
|
1,045,289 |
|
|
|
120,763 |
|
|
|
562,174 |
|
|
|
1,728,226 |
|
Accumulated impairment
|
|
|
— |
|
|
|
— |
|
|
|
(63,264 |
) |
|
|
(63,264 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill, net
|
|
$ |
1,045,289 |
|
|
$ |
120,763 |
|
|
$ |
498,910 |
|
|
$ |
1,664,962 |
|
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|
|
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|
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):
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As of December 31,
2011
|
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|
Six Months Ended June 30,
2012
|
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|
As of June 30, 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 |
) |
|
$ |
(5,797 |
) |
|
$ |
5,311 |
|
|
$ |
(387 |
) |
|
$ |
132,862 |
|
|
|
11.6 |
|
Backlog
|
|
|
121,779 |
|
|
|
(101,153 |
) |
|
|
(8,758 |
) |
|
|
4,906 |
|
|
|
262 |
|
|
|
17,036 |
|
|
|
1.4 |
|
Trade names
|
|
|
29,661 |
|
|
|
(1,948 |
) |
|
|
(521 |
) |
|
|
2,768 |
|
|
|
(23 |
) |
|
|
29,937 |
|
|
|
27.7 |
|
Non-compete agreements
|
|
|
27,414 |
|
|
|
(17,604 |
) |
|
|
(2,901 |
) |
|
|
1,926 |
|
|
|
(45 |
) |
|
|
8,790 |
|
|
|
3.3 |
|
Patented rights and developed technology
|
|
|
16,378 |
|
|
|
(5,538 |
) |
|
|
(966 |
) |
|
|
3,020 |
|
|
|
— |
|
|
|
12,894 |
|
|
|
7.1 |
|
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|
Total intangible assets subject to amortization
|
|
|
367,125 |
|
|
|
(164,401 |
) |
|
|
(18,943 |
) |
|
|
17,931 |
|
|
|
(193 |
) |
|
|
201,519 |
|
|
|
12.5 |
|
Other intangible assets not subject to amortization
|
|
|
4,500 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,500 |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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|
Total intangible assets
|
|
$ |
371,625 |
|
|
$ |
(164,401 |
) |
|
$ |
(18,943 |
) |
|
$ |
17,931 |
|
|
$ |
(193 |
) |
|
$ |
206,019 |
|
|
|
N/A |
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Amortization expense for intangible assets was $9.5 million and $6.9 million for the three months ended June 30,
2012 and 2011 and $18.9 million and $13.1 million for the six months ended June 30, 2012 and 2011. The estimated future aggregate amortization expense of intangible assets as of June 30, 2012 is set forth below (in thousands):
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|
For the Fiscal Year Ending December 31—
|
|
|
|
|
Remainder of 2012
|
|
$ |
19,385 |
|
2013
|
|
|
20,602 |
|
2014
|
|
|
18,549 |
|
2015
|
|
|
16,207 |
|
2016
|
|
|
15,353 |
|
Thereafter
|
|
|
111,423 |
|
|
|
|
|
|
Total
|
|
$ |
201,519 |
|
|
|
|
|
|
|