v3.24.3
Acquisitions (Tables)
 9 Months Ended
Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Aggregate Consideration Paid or Payable and Allocation Net Assets
The following table summarizes the estimated fair value of total consideration transferred or estimated to be transferred and the fair value of assets acquired and liabilities assumed as of their respective acquisition dates as of September 30, 2024 for acquisitions completed in the nine months ended September 30, 2024 (in thousands):
September 30, 2024
CEIAll Others
Consideration:
Cash paid or payable$1,655,373 $537,795 
Value of Quanta common stock issued216,264 74,797 
Contingent consideration96,086 29,166 
Fair value of total consideration transferred or estimated to be transferred$1,967,723 $641,758 
Cash and cash equivalents$414,705 $30,797 
Accounts receivable339,254 74,188 
Contract assets89,090 162 
Inventories— 49,806 
Prepaid expenses and other current assets29,997 12,432 
Property and equipment32,338 90,535 
Operating lease right-of-use assets33,032 25,429 
Other assets38,785 617 
Identifiable intangible assets656,000 213,573 
Current maturities of long-term debt(1,880)(4,534)
Current portion of operating lease liabilities(11,752)(4,908)
Accounts payable and accrued liabilities(311,469)(68,832)
Contract liabilities(222,538)(34,454)
Long-term debt, net of current maturities(3,719)(4,436)
Operating lease liabilities, net of current portion(21,101)(20,522)
Deferred income taxes(15,606)(48,869)
Insurance and other non-current liabilities(6,740)(397)
Total identifiable net assets1,038,396 310,587 
Goodwill 929,327 331,171 
Fair value of net assets acquired$1,967,723 $641,758 
Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization
The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in the nine months ended September 30, 2024 as of the acquisition dates and the related weighted average amortization periods by type (in thousands, except for weighted average amortization periods, which are in years).    
Nine Months Ended September 30, 2024
CEI
All Others
Estimated Fair Value
Amortization Period in Years
Estimated Fair ValueWeighted Average Amortization Period in Years
Customer relationships$396,000 8.0$167,486 7.0
Backlog90,000 3.320,125 2.8
Trade names170,000 15.020,242 14.9
Non-compete agreements— N/A3,444 5.0
Patented rights, developed technology, process certifications and other
— N/A2,276 15.0
Total intangible assets subject to amortization$656,000 9.2$213,573 7.4
Discount Rates and Customer Attrition Rates The following table includes the discount rates and customer attrition rates used to determine the fair value of customer relationship intangible assets for businesses acquired during the nine months ended September 30, 2024 as of the respective acquisition dates:
Nine Months Ended
 September 30, 2024
RangeWeighted Average
Discount rates
15% to 24%
15%
Customer attrition rates
10% to 25%
11%
Summary of Contingent Consideration Liabilities The aggregate fair value of outstanding contingent consideration liabilities for acquisitions completed prior to September 30, 2024 and their classification in the accompanying consolidated balance sheets is as follows (in thousands):
 September 30, 2024December 31, 2023
Accounts payable and accrued expenses$157,843 $— 
Insurance and other non-current liabilities120,427 157,073 
Total contingent consideration liabilities$278,270 $157,073 
Unaudited Supplemental Pro Forma Results of Operations
The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in the nine months ended September 30, 2024 and the year ended December 31, 2023, have been provided for illustrative purposes only and may not be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future (in thousands).
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
Revenues$6,595,666 $6,255,046 $18,310,917 $17,004,381 
Net (loss) income attributable to common stock (1)
$(45,595)$249,828 $221,476 $447,407 
(1) The pro forma combined results of operations for the three and nine months ended September 30, 2024 include one-time acquisition-related expenses of $453.8 million ($335.8 million net of tax) for pre-acquisition transaction costs incurred by CEI, primarily related to the vesting and increase in value of stock appreciation rights as a result of the acquisition.