Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.10.0.1
Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
GOODWILL AND OTHER INTANGIBLE ASSETS:
A summary of changes in Quanta’s goodwill is as follows (in thousands):
 
 
Electric Power Infrastructure Services
Division
 
Oil and Gas Infrastructure Services
Division
 
Total
Balance at December 31, 2017:
 
 
 
 
 
 
Goodwill
 
$
1,272,527

 
$
693,905

 
$
1,966,432

Accumulated impairment
 

 
(97,832
)
 
(97,832
)
 
 
1,272,527

 
596,073

 
1,868,600

 
 
 
 
 
 
 
Goodwill recorded related to 2018 acquisitions
 
43,181

 

 
43,181

Purchase price allocation adjustments
 
51

 

 
51

Foreign currency translation adjustments
 
(8,772
)
 
(5,396
)
 
(14,168
)
 
 
 
 
 
 
 
Balance at June 30, 2018:
 
 
 
 
 
 
Goodwill
 
1,306,987

 
687,789

 
1,994,776

Accumulated impairment
 

 
(97,112
)
 
(97,112
)
 
 
$
1,306,987

 
$
590,677

 
$
1,897,664


Also, as described in Note 2, Quanta’s operating units are organized into one of Quanta’s two internal divisions, and accordingly the goodwill associated with the operating units has been aggregated on a divisional basis in the table above. These divisions are closely aligned with Quanta’s reportable segments, and operating units are assigned to a division based on the predominant type of work performed. From time to time, an operating unit may be reorganized between divisions if warranted due to changes in its predominant business.
Quanta’s intangible assets and the remaining weighted average amortization periods related to Quanta’s intangible assets subject to amortization were as follows (in thousands except for weighted average amortization periods, which are in years):
 
 
As of
 
As of
 
As of
 
 
June 30, 2018
 
December 31, 2017
 
June 30, 2018
 
 
Intangible
Assets
 
Accumulated
Amortization
 
Intangible
Assets, Net
 
Intangible
Assets
 
Accumulated
Amortization
 
Intangible
Assets, Net
 
Remaining Weighted Average Amortization Period in Years
Customer relationships
 
$
326,181

 
$
(150,677
)
 
$
175,504

 
$
327,334

 
$
(137,333
)
 
$
190,001

 
6.8
Backlog
 
135,772

 
(134,885
)
 
887

 
136,266

 
(135,847
)
 
419

 
0.7
Trade names
 
80,279

 
(19,289
)
 
60,990

 
74,797

 
(17,057
)
 
57,740

 
15.8
Non-compete agreements
 
37,601

 
(28,843
)
 
8,758

 
37,760

 
(27,659
)
 
10,101

 
3.6
Patented rights and developed technology
 
22,507

 
(18,427
)
 
4,080

 
22,529

 
(17,611
)
 
4,918

 
2.9
Curriculum
 
9,000

 
(399
)
 
8,601

 

 

 

 
9.6
Total intangible assets subject to amortization
 
611,340

 
(352,520
)
 
258,820

 
598,686

 
(335,507
)
 
263,179

 
8.8
Engineering license
 
3,000

 

 
3,000

 

 

 

 
 
  Total intangible assets
 
$
614,340

 
$
(352,520
)
 
$
261,820

 
$
598,686

 
$
(335,507
)
 
$
263,179

 
 

Amortization expense for intangible assets was $10.5 million and $6.5 million for the three months ended June 30, 2018 and 2017 and $20.9 million and $13.1 million for the six months ended June 30, 2018 and 2017.
The estimated future aggregate amortization expense of intangible assets subject to amortization as of June 30, 2018 is set forth below (in thousands):
For the Fiscal Year Ending December 31,
 
 

Remainder of 2018
 
$
20,880

2019
 
38,683

2020
 
37,265

2021
 
34,932

2022
 
31,403

Thereafter
 
95,657

Total
 
$
258,820