The following historical selected financial data has been derived from the consolidated 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,
2016
2015
2014
2013
2012
(In thousands, except per share information)
Consolidated Statements of Operations Data:
Revenues
$
7,651,319
$
7,572,436
$
7,747,229
$
6,411,577
$
5,825,085
Cost of services (including depreciation)
6,637,519
6,648,771
6,578,435
5,424,644
4,953,176
Gross profit
1,013,800
923,665
1,168,794
986,933
871,909
Selling, general and administrative expenses
653,338
592,863
705,477
(c)
485,069
421,726
Amortization of intangible assets
31,685
34,848
34,257
25,865
34,049
Asset impairment charges (a)
7,964
58,451
—
—
—
Operating income
320,813
237,503
429,060
475,999
416,134
Interest expense
(14,887
)
(8,024
)
(4,765
)
(2,668
)
(3,746
)
Interest income
2,423
1,493
3,736
3,378
1,471
Equity in earnings (losses) of unconsolidated affiliates, including gain on sale of investment
(979
)
(466
)
(332
)
112,744
(d)
2,084
Other income (expense), net
316
(1,831
)
(1,100
)
(1,133
)
(349
)
Income from continuing operations before income taxes
307,686
228,675
426,599
588,320
415,594
Provision for income taxes (b)
107,246
97,472
139,007
196,875
139,988
Net income from continuing operations
200,440
131,203
287,592
391,445
275,606
Net income (loss) from discontinued operations
(342
)
190,621
27,490
29,864
47,050
Net income
200,098
321,824
315,082
421,309
322,656
Less: Net income attributable to non-controlling interests
1,715
10,917
18,368
19,388
16,027
Net income attributable to common stock
$
198,383
$
310,907
$
296,714
$
401,921
$
306,629
Amounts attributable to common stock:
Net income from continuing operations
$
198,725
$
120,286
$
269,224
$
372,057
$
259,579
Net income (loss) from discontinued operations
(342
)
190,621
27,490
29,864
47,050
Net income attributable to common stock
$
198,383
$
310,907
$
296,714
$
401,921
$
306,629
Basic earnings per share attributable to common stock from continuing operations
$
1.26
$
0.62
$
1.22
$
1.73
$
1.22
Diluted earnings per share attributable to common stock from continuing operations
$
1.26
$
0.62
$
1.22
$
1.73
$
1.22
(a)
In 2016 and 2015, we recorded total asset impairment charges of $8.0 million ($7.1 million net of tax) and $58.5 million ($44.6 million net of tax). The charges recorded in 2016 primarily relate to a pending disposition of certain international renewable energy services operations. The charges recorded in 2015 related to goodwill, intangible assets and property and equipment, including a $39.8 million goodwill impairment and a $12.1 million
impairment to customer relationships, trade names and non-compete agreement intangible assets. These charges were primarily attributable to lower levels of expected activity in the U.S. Gulf of Mexico and, to a lesser extent, due to the extended low commodity price environment with respect to certain directional drilling operations in Australia. In 2015, we also recorded a $6.6 million impairment to property and equipment associated with the same international renewable energy services operations.
(b)
The effective tax rate was lower in 2016 primarily due to $20.5 million in tax benefits from decreases in reserves for uncertain tax positions, which resulted from the expiration of federal and state statute of limitations periods. The effective tax rate in 2015 was higher primarily due to a lower proportion of income before taxes from international jurisdictions. Additionally, certain asset impairments recorded in 2015 were not tax deductible, and a change in the Alberta provincial statutory income tax resulted in additional taxes of $5.0 million. In addition, the effective tax rates in 2014, 2013 and 2012 were impacted by $8.1 million, $9.9 million and $7.8 million in tax benefits primarily due to decreases in reserves for uncertain tax positions resulting from the expiration of 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 and a $38.8 million expense resulting from an arbitration decision associated with a contract dispute on a 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.
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