Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS:

Goodwill

The changes in the carrying amount of goodwill of each of Quanta’s reportable segments were as follows (in thousands):

	Electric Power Segment		Renewable Energy Segment		Underground and Infrastructure Segment		Total
Balance at December 31, 2021: (1)	$	1,387,418	$	1,461,192	$	680,276	$	3,528,886
Goodwill related to acquisition completed in 2022	12,225		—		—		12,225
Purchase price allocation adjustments (2)	962		64,874		580		66,416
Foreign currency translation adjustments	(4,464)		(7,917)		(8,401)		(20,782)
Balance at December 31, 2022:(1)	1,396,141		1,518,149		672,455		3,586,745
Goodwill related to the acquisitions completed in 2023	189,777		263,854		—		453,631
Purchase price allocation adjustments	338		—		—		338
Foreign currency translation adjustments	1,243		2,185		1,763		5,191
Balance at December 31, 2023:(1)	$	1,587,499	$	1,784,188	$	674,218	$	4,045,905

(1) Included in the Underground and Infrastructure segment for the years ended December 31, 2023, 2022, and 2021 was accumulated impairment of $96.1 million, $96.1 million and $96.9 million.

(2) Goodwill included in the Renewable Energy segment increased by $64.9 million during the year ended December 31, 2022 as a result of certain post-closing consideration adjustments associated with Quanta’s acquisition of Blattner.

In connection with the 2023 and 2022 annual goodwill assessments, management performed a qualitative impairment assessment of Quanta’s reporting units, which indicated that the fair value of its reporting units was greater than their carrying value including goodwill. Accordingly, a quantitative goodwill impairment test was not required, and no goodwill impairment was recognized in 2023 or 2022.

Other Intangible Assets

Quanta’s identifiable 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 December 31, 2023							As of December 31, 2022
	Remaining Weighted Average Amortization Period in Years	Intangible Assets		Accumulated Amortization		Intangible Assets, Net		Intangible Assets		Accumulated Amortization		Intangible Assets, Net
Customer relationships	4.5	$	1,852,249	$	(842,184)	$	1,010,065	$	1,741,679	$	(600,841)	$	1,140,838
Backlog	2.1	336,149		(297,868)		38,281		282,483		(282,397)		86
Trade names	12.7	378,428		(87,572)		290,856		355,855		(63,190)		292,665
Non-compete agreements	5.0	59,464		(48,687)		10,777		52,356		(44,570)		7,786
Patented rights, developed technology, process certifications and other	1.1	32,985		(29,605)		3,380		32,969		(26,281)		6,688
Curriculum	4.6	14,794		(8,741)		6,053		13,488		(5,920)		7,568
Total intangible assets subject to amortization	6.2	2,674,069		(1,314,657)		1,359,412		2,478,830		(1,023,199)		1,455,631
Engineering license		3,000		—		3,000		3,000		—		3,000
Total intangible assets		$	2,677,069	$	(1,314,657)	$	1,362,412	$	2,481,830	$	(1,023,199)	$	1,458,631

Amortization expense for intangible assets was $289.0 million, $354.0 million and $165.4 million for the years ended December 31, 2023, 2022 and 2021.

The estimated future aggregate amortization expense of intangible assets subject to amortization as of December 31, 2023 is set forth below (in thousands):

Year Ending December 31:
2024	$	283,627
2025	268,052
2026	246,111
2027	220,349
2028	160,270
Thereafter	181,003
Total	$	1,359,412