Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Revenue Disaggregated by Geographic Location and Contract Type

The following tables present Quanta’s revenue disaggregated by geographic location, as determined by the job location, and contract type (in thousands):

	Year Ended December 31,
	2019				2018
By primary geographic location:
United States	$	10,190,684	84.0	%	$	8,575,341	78.6	%
Canada	1,436,720		11.9	%	1,984,214		16.4	%
Australia	187,915		1.6	%	377,453		3.1	%
Latin America and Other	296,834		2.5	%	234,415		1.9	%
Total revenues	$	12,112,153	100.0	%	$	11,171,423	100.0	%

	Year Ended December 31,
	2019				2018
By contract type:
Unit-price contracts	$	4,193,295	34.6	%	$	3,828,997	39.4	%
Cost-plus contracts	3,304,161		27.3	%	2,507,025		20.7	%
Fixed price contracts	4,614,697		38.1	%	4,835,401		39.9	%
Total revenues	$	12,112,153	100.0	%	$	11,171,423	100.0	%

Contract Assets and Liabilities

Contract assets and liabilities consisted of the following (in thousands):

	December 31, 2019		December 31, 2018		December 31, 2017
Contract assets	$	601,268	$	576,891	$	497,292
Contract liabilities	$	606,146	$	425,961	$	433,387

Cash and Cash Equivalents

Amounts related to Quanta’s cash and cash equivalents based on geographic location of the bank accounts were as follows (in thousands):

	December 31,
	2019		2018
Cash and cash equivalents held in domestic bank accounts	$	130,771	$	62,495
Cash and cash equivalents held in foreign bank accounts	34,027		16,192
Total cash and cash equivalents	$	164,798	$	78,687

Amounts related to cash and cash equivalents held by joint ventures, which are included in Quanta’s total cash and cash equivalents balances, were as follows (in thousands):

	December 31,
	2019		2018
Cash and cash equivalents held by domestic joint ventures	$	6,518	$	8,544
Cash and cash equivalents held by foreign joint ventures	16		441
Total cash and cash equivalents held by joint ventures	6,534		8,985
Cash and cash equivalents not held by joint ventures	158,264		69,702
Total cash and cash equivalents	$	164,798	$	78,687

Significant Estimates Used by Management in Determining Fair Values of Intangible Assets

The following table presents the significant estimates used by management in determining the fair values of Quanta’s reporting units for which a quantitative assessment was performed at December 31, 2019, 2018 and 2017:

	2019	2018	2017
Years of cash flows before terminal value	5 years	5 years	5 years
Weighted average cost of capital	12.5%	12.0% to 15.0%	12.0% to 14.0%
Transaction multiple(s) applied to EBITDA	6.0	6.5 to 9.0	5.5 to 7.0
Guideline public company multiple(s) applied to EBITDA	6.5	6.5 to 9.5	6.5 to 8.0
Five-year revenue compounded annual growth rate(s)	-9%	-14% to 8%	-14% to 17%
Weighting of three methods:
Discounted cash flows	70%	70%	70%
Market multiple	15%	15%	15%
Market capitalization	15%	15%	15%

The significant estimates used by management in determining the fair values of

customer relationship intangible assets include future revenues, discount rates and customer attrition rates. The following table presents the range of rates used for acquisitions in the years ended December 31, 2019, 2018 and 2017:

	2019	2018	2017
Discount rates	19% to 24%	20% to 27%	17% to 25%
Customer attrition rates	5% to 37%	20% to 33%	15% to 78%

Aggregate Fair Values of Outstanding and Unearned Contingent Consideration Liabilities

Aggregate fair values of these outstanding and unearned contingent consideration liabilities and their classification in the accompanying consolidated balance sheets were as follows (in thousands):

	December 31, 2019		December 31, 2018
Accounts payable and accrued expenses	$	77,618	$	—
Insurance and other non-current liabilities	6,542		70,756
Total contingent consideration liabilities	$	84,160	$	70,756