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 August 4, 2015, we sold our fiber optic licensing operations, and 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 fiber optic licensing and 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,
2015
2014
2013
2012
2011
(In thousands, except per share information)
Consolidated Statements of Operations Data:
Revenues
$
7,572,436
$
7,747,229
$
6,411,577
$
5,825,085
$
4,103,756
Cost of services (including depreciation)
6,648,771
6,578,435
5,424,644
4,953,176
3,604,706
(e)
Gross profit
923,665
1,168,794
986,933
871,909
499,050
Selling, general and administrative expenses
592,863
705,477
(c)
485,069
421,726
325,791
Amortization of intangible assets
34,848
34,257
25,865
34,049
25,034
Asset impairment charges
58,451
(a)
—
—
—
—
Operating income
237,503
429,060
475,999
416,134
148,225
Interest expense
(8,024
)
(4,765
)
(2,668
)
(3,746
)
(1,803
)
Interest income
1,493
3,736
3,378
1,471
1,066
Equity in earnings (losses) of unconsolidated affiliates, including gain on sale of investment
(466
)
(332
)
112,744
(d)
2,084
—
Other income (expense), net
(1,831
)
(1,100
)
(1,133
)
(349
)
(596
)
Income from continuing operations before income taxes
228,675
426,599
588,320
415,594
146,892
Provision for income taxes (b)
97,472
139,007
196,875
139,988
43,434
Net income from continuing operations
131,203
287,592
391,445
275,606
103,458
Net income from discontinued operations
190,621
27,490
29,864
47,050
40,958
Net income
321,824
315,082
421,309
322,656
144,416
Less: Net income attributable to non-controlling interests
10,917
18,368
19,388
16,027
11,901
Net income attributable to common stock
$
310,907
$
296,714
$
401,921
$
306,629
$
132,515
Amounts attributable to common stock:
Net income from continuing operations
$
120,286
$
269,224
$
372,057
$
259,579
$
91,557
Net income from discontinued operations
190,621
27,490
29,864
47,050
40,958
Net income attributable to common stock
$
310,907
$
296,714
$
401,921
$
306,629
$
132,515
Basic earnings per share attributable to common stock from continuing operations
$
0.62
$
1.22
$
1.73
$
1.22
$
0.43
Diluted earnings per share attributable to common stock from continuing operations
$
0.62
$
1.22
$
1.73
$
1.22
$
0.43
(a)
During the fourth quarter of 2015, we recorded total asset impairment charges of $58.5 million ($44.6 million net of tax). These impairment charges related to goodwill, intangible assets and property and equipment. Included in these charges was a $39.8 million goodwill impairment and a $12.1 million impairment related to customer relationships, trade names and non-compete agreement intangible assets. These goodwill and intangible
impairments primarily resulted from lower forecasted oil and gas services revenues for our Gulf of Mexico operations and certain operations in Australia, due to the extended low commodity price environment. Additionally, we recorded a property and equipment impairment of $6.6 million related to certain international renewable energy services operations.
(b)
The effective tax rate was higher in 2015 due to a lower proportion of income before taxes from international jurisdictions, which are generally taxed at lower statutory rates. Additionally, certain of the asset impairments recorded were not deductible for tax purposes. A change in the Alberta provincial statutory income tax, effective as of June 1, 2015 resulted in additional taxes of $5.0 million. These negative impacts were partially offset by the realization of $4.2 million in tax benefits associated with the realization of a previously unrecognized deferred tax asset related to our investment in a foreign subsidiary. The effective tax rate in 2015 did not reflect a significant decrease in reserves for uncertain tax positions because the statute of limitations remains open for various tax years currently under audit. The effective tax rates in 2014, 2013, 2012 and 2011 were impacted by the recording of $8.1 million, $9.9 million, $7.8 million and $8.4 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 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.
(d)
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).
(e)
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.
December 31,
2015
2014
2013
2012
2011
(In thousands)
Balance Sheet Data:
Working capital (a)
$
1,073,775
$
1,389,393
$
1,226,012
$
1,310,405
$
950,535
Goodwill
1,552,658
1,596,695
1,445,927
1,202,854
1,136,020
Total assets
5,213,543
6,253,583
5,731,982
5,111,408
4,656,951
Long-term debt, net of current maturities
475,364
72,489
1,053
—
—
Total stockholders’ equity
3,085,494
4,514,473
4,234,188
3,766,548
3,381,952
(a)
During the quarter ended December 31, 2015, we adopted an accounting update that was issued by the FASB that requires deferred tax assets and liabilities to be classified as non-current in a classified balance sheet. The guidance has been applied retrospectively to all periods presented.
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