Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

16. SEGMENT INFORMATION:

Quanta presents its operations under three reportable segments: (1) Electric Power Infrastructure Services, (2) Oil and Gas Infrastructure Services and (3) Fiber Optic Licensing and Other. This structure is generally based on the broad end-user markets for Quanta’s services. See Note 1 for additional information regarding Quanta’s reportable segments.

Quanta’s segment results are derived from the types of services provided across its operating units in each of the end user markets described above. Quanta’s entrepreneurial business model allows each of its operating units to serve the same or similar customers and to provide a range of services across end user markets. Quanta’s operating units are organized into one of three internal divisions, namely, the Electric Power Division, the Oil and Gas Infrastructure Division and the Fiber Optic Licensing Division. These internal divisions are closely aligned with the reportable segments described above based on their operating units’ predominant type of work.

Reportable segment information, including revenues and operating income by type of work, is gathered from each operating unit for the purpose of evaluating segment performance in support of Quanta’s market strategies. These classifications of Quanta’s operating unit revenues by type of work for segment reporting purposes can at times require judgment on the part of management. Quanta’s operating units may perform joint infrastructure service projects for customers in multiple industries, deliver multiple types of network services under a single customer contract or provide service across industries, for example, joint trenching projects to install distribution lines for electric power and natural gas customers.

In addition, Quanta’s integrated operations and common administrative support at each of its operating units require that certain allocations, including allocations of shared and indirect costs, such as facility costs, indirect operating expenses, including depreciation, and general and administrative costs, be made to determine operating segment profitability. Corporate costs, such as payroll and benefits, employee travel expenses, facility costs, professional fees, acquisition costs and amortization related to certain intangible assets are not allocated.

Summarized financial information for Quanta’s reportable segments is presented in the following table (in thousands):

	Year Ended December 31,
	2014			2013			2012
Revenues:
Electric Power Infrastructure	$	5,238,627		$	4,480,647		$	4,206,509
Oil and Gas Infrastructure		2,444,558			1,869,615			1,534,713
Fiber Optic Licensing and Other		168,065			172,580			179,047
Consolidated	$	7,851,250		$	6,522,842		$	5,920,269
Operating income (loss):
Electric Power Infrastructure	$	458,332		$	521,855		$	520,834
Oil and Gas Infrastructure		162,797			138,543			55,410
Fiber Optic Licensing and Other		54,386			55,415			61,299
Corporate and non-allocated costs		(199,940	)		(188,885	)		(172,421	)
Consolidated	$	475,575		$	526,928		$	465,122
Depreciation:
Electric Power Infrastructure	$	74,723		$	63,407		$	55,205
Oil and Gas Infrastructure		57,414			47,050			43,285
Fiber Optic Licensing and Other		18,495			16,786			15,173
Corporate and non-allocated costs		7,478			6,867			6,640
Consolidated	$	158,110		$	134,110		$	120,303

Separate measures of Quanta’s assets and cash flows by reportable segment, including capital expenditures, are not produced or utilized by management to evaluate segment performance. Quanta’s fixed assets, which are held at the operating unit level, include operating machinery, equipment and vehicles, as well as office equipment, buildings and leasehold improvements, are used on an interchangeable basis across its reportable segments. As such, for reporting purposes, total depreciation expense is allocated each quarter among Quanta’s reportable segments based on the ratio of each reportable segment’s revenue contribution to consolidated revenues.

Foreign Operations

During 2014, 2013, and 2012, Quanta derived $1.89 billion, $1.31 billion and $861.5 million, respectively, of its revenues from foreign operations. Of Quanta’s foreign revenues, approximately 82%, 86% and 96% was earned in Canada during the years ended December 31, 2014, 2013 and 2012, respectively. In addition, Quanta held property and equipment of $372.9 million and $196.8 million in foreign countries, primarily Canada, as of December 31, 2014 and 2013. The increases in foreign revenues and assets were partially due to the timing of the non-U.S. acquisitions described in Note 5.