The following historical selected financial data has been derived from the financial statements of Quanta. See Note 5 of the Notes to Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data for information regarding certain acquisitions and the related impact on our results of operations as these acquisitions may affect the comparability of such results. Additionally, on December 3, 2012, we sold substantially all of our domestic telecommunications infrastructure services operations and related subsidiaries. We have presented the results of operations, financial position and cash flows of such telecommunications subsidiaries as discontinued operations for all applicable periods presented in this Annual Report on Form 10-K. The historical selected financial data should be read in conjunction with our Consolidated Financial Statements and related notes thereto included in Item 8. Financial Statements and Supplementary Data and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Year Ended December 31,
2014
2013
2012
2011
2010
(In thousands, except per share information)
Consolidated Statements of Operations Data:
Revenues
$
7,851,250
$
6,522,842
$
5,920,269
$
4,193,764
$
3,629,433
Cost of services (including depreciation)
6,617,730
5,467,389
4,982,562
3,632,048
(d)
3,039,912
Gross profit
1,233,520
1,055,453
937,707
561,716
589,521
Selling, general and administrative expenses
722,038
(a)
501,010
434,894
337,835
307,875
Amortization of intangible assets
35,907
27,515
37,691
29,039
37,655
Operating income
475,575
526,928
465,122
194,842
243,991
Interest expense
(4,765
)
(2,668
)
(3,746
)
(1,803
)
(4,902
)
Interest income
3,741
3,380
1,471
1,066
1,417
Loss on early extinguishment of debt, net
—
—
—
—
(7,107
)(e)
Equity in earnings (losses) of unconsolidated affiliates, including gain on sale of investment
(332
)
112,744
(c)
2,084
—
—
Other income (expense), net
(1,102
)
(1,135
)
(351
)
(597
)
559
Income from continuing operations before income taxes
473,117
639,249
464,580
193,508
233,958
Provision for income taxes (b)
157,408
217,940
158,859
63,096
88,884
Net income from continuing operations
315,709
421,309
305,721
130,412
145,074
Income (loss) from discontinued operations, net of taxes
(627
)
—
16,935
14,004
10,483
Net income
315,082
421,309
322,656
144,416
155,557
Less: Net income attributable to non-controlling interests
18,368
19,388
16,027
11,901
2,381
Net income attributable to common stock
$
296,714
$
401,921
$
306,629
$
132,515
$
153,176
Amounts attributable to common stock:
Net income from continuing operations
$
297,341
$
401,921
$
289,694
$
118,511
$
142,693
Net income (loss) from discontinued operations
(627
)
—
16,935
14,004
10,483
Net income attributable to common stock
$
296,714
$
401,921
$
306,629
$
132,515
$
153,176
Basic earnings per share attributable to common stock from continuing operations
$
1.35
$
1.87
$
1.36
$
0.56
$
0.68
Diluted earnings per share attributable to common stock from continuing operations
In 2014, selling, general and administrative expenses included a $102.5 million charge to provision for long-term contract receivable associated with an electric power infrastructure services project completed in 2012. Additionally, we recorded $38.8 million of expense resulting from an arbitration decision associated with a contract dispute on a 2010 directional drilling project. For additional information, see Current and Long-Term Accounts Receivable and Allowances for Doubtful Accounts in Note 2 and Legal Proceedings — Sunrise Powerlink Arbitration and — National Gas Company of Trinidad and Tobago Arbitration in Note 15 of the Notes to Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data.
(b)
The effective tax rates in 2014, 2013, 2012, 2011 and 2010 were impacted by the recording of $8.2 million, $10.0 million, $7.9 million, $8.4 million and $7.6 million of tax benefits in each respective year primarily due to decreases in reserves for uncertain tax positions resulting from the expiration of various federal and state statute of limitations periods.
(c)
In 2013, we recorded a pre-tax gain of approximately $112.7 million from the sale of all of our equity ownership interest in Howard Midstream Energy Partners, LLC (HEP).
(d)
In 2011, cost of services included a $32.6 million charge related to our partial withdrawal from an underfunded pension plan. For additional information, see Collective Bargaining Agreements in Note 15 of the Notes to Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data.
(e)
In 2010, we recorded a $7.1 million loss on early extinguishment of debt as a result of the redemption of all of our outstanding 3.75% convertible subordinated notes due 2026 (3.75% Notes). This loss includes a non-cash loss of $3.5 million related to the difference between the net carrying value and the estimated fair value of the 3.75% Notes calculated as of the date of redemption, the payment of $2.3 million representing the 1.607% redemption premium above par value and a non-cash loss of $1.3 million from the write-off of the remaining unamortized deferred financing costs related to the 3.75% Notes.
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