Discontinued Operations

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

4. DISCONTINUED OPERATIONS:

On August 4, 2015, Quanta completed the sale of its fiber optic licensing operations to Crown Castle for an aggregate purchase price of approximately $1 billion in cash, resulting in estimated after-tax net proceeds of approximately $848 million. In the third quarter of 2015, Quanta recognized a pre-tax gain of approximately $272 million and a corresponding tax expense of approximately $101 million, which resulted in a gain on the sale, net of tax, of approximately $171 million.

Quanta has presented the results of operations, financial position, cash flows and disclosures related to its fiber optic licensing operations as discontinued operations in the accompanying unaudited condensed consolidated financial statements. The results were included in Quanta’s Fiber Optic Licensing and Other segment prior to the second quarter of 2015.

Quanta will remain liable for all taxes and insured claims associated with the fiber optic licensing operations arising on or before or outstanding as of August 4, 2015.

The following represents a reconciliation of the major classes of line items constituting income from discontinued operations related to Quanta’s fiber optic licensing operations (in thousands):

	Three Months Ended			Six Months Ended
	June 30, 2015			June 30, 2015
Major classes of line items constituting pretax income from discontinued operations:
Revenues	$	25,692		$	51,262
Expenses:
Cost of services (including depreciation)		10,896			21,711
Selling, general and administrative expenses		5,106			9,881
Amortization of intangible assets		413			825
Other income (expense) items that are not major		9			10
Income before taxes of discontinued operations		9,286			18,855
Provision for income taxes related to discontinued operations		(4,816	)		(1,042	)
Net income from discontinued operations as presented in the statements of operations	$	14,102		$	19,897

There were no assets or non-current liabilities associated with fiber optic licensing operations at June 30, 2016 or December 31, 2015. The following represents a reconciliation of the carrying amounts of major classes of current liabilities of fiber optic licensing operations (in thousands):

	June 30, 2016		December 31, 2015
Carrying amounts of major classes of liabilities of discontinued operations:
Current liabilities:
Accounts payable and accrued expenses	$	2,651	$	15,313
Total current liabilities of discontinued operations	$	2,651	$	15,313