Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS:

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 below. 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.

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


	Electric Power Infrastructure Solutions Division		Underground Utility and Infrastructure Solutions Division		Total
Balance at December 31, 2019:
Goodwill	$	1,365,163	$	753,938	$	2,119,101
Accumulated impairment	—		(96,426)		(96,426)
	1,365,163		657,512		2,022,675

Goodwill related to acquisitions completed in 2020	79,889		6,308		86,197
Purchase price allocation adjustments	1,730		19		1,749

Foreign currency translation adjustments	2,992		7,401		10,393

Balance at December 31, 2020:
Goodwill	1,449,774		768,868		2,218,642
Accumulated impairment	—		(97,628)		(97,628)
	1,449,774		671,240		2,121,014

Goodwill related to acquisitions completed in 2021	1,780		—		1,780
Purchase price allocation adjustments	(1,264)		—		(1,264)

Foreign currency translation adjustments	2,239		320		2,559

Balance at March 31, 2021:
Goodwill	1,452,529		769,017		2,221,546
Accumulated impairment	—		(97,457)		(97,457)
	$	1,452,529	$	671,560	$	2,124,089

Quanta’s intangible assets and the remaining weighted average amortization periods related to its intangible assets subject to amortization were as follows (in thousands except for weighted average amortization periods, which are in years):


	As of							As of
	March 31, 2021							December 31, 2020
	Remaining Weighted Average Amortization Period in Years	Intangible Assets		Accumulated Amortization		Intangible Assets, Net		Intangible Assets		Accumulated Amortization		Intangible Assets, Net
Customer relationships	5.4	$	618,035	$	(295,700)	$	322,335	$	616,875	$	(277,647)	$	339,228
Backlog	1.1	150,096		(146,852)		3,244		149,769		(145,476)		4,293
Trade names	13.6	101,711		(33,960)		67,751		101,533		(32,471)		69,062
Non-compete agreements	3.0	47,537		(38,105)		9,432		47,333		(36,973)		10,360
Patented rights and developed technology	3.3	22,496		(21,940)		556		22,486		(21,894)		592
Curriculum	7.1	12,233		(3,429)		8,804		12,233		(3,113)		9,120
Total intangible assets subject to amortization	6.7	952,108		(539,986)		412,122		950,229		(517,574)		432,655
Engineering license		3,000		—		3,000		3,000		—		3,000
Total intangible assets		$	955,108	$	(539,986)	$	415,122	$	953,229	$	(517,574)	$	435,655

Amortization expense for intangible assets was $21.4 million and $17.9 million for the three months ended March 31, 2021 and 2020.

The estimated future aggregate amortization expense of intangible assets subject to amortization as of March 31, 2021 is set forth below (in thousands):


Year Ending December 31:
Remainder of 2021	$	63,453
2022	77,104
2023	68,280
2024	55,249
2025	43,634
Thereafter	104,402
Total	$	412,122