| Document and Entity Information (USD $) | |||
| In Billions, except Share data | 3 Months Ended
Mar. 31, 2010 | May. 03, 2010
| Jun. 30, 2009
|
| Document and Entity Information [Abstract] | |||
| Entity Registrant Name | QUANTA SERVICES INC | ||
| Entity Central Index Key | 0001050915 | ||
| Document Type | 10-Q | ||
| Document Period End Date | 2010-03-31 | ||
| Amendment Flag | false | ||
| Document Fiscal Year Focus | 2,010 | ||
| Document Fiscal Period Focus | Q1 | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Public Float | 4.52 | ||
| Entity Common Stock, Shares Outstanding | 210,490,611 |
| Condensed Consolidated Balance Sheets (Unaudited) (USD $) | ||
| In Thousands | 3 Months Ended
Mar. 31, 2010 | 12 Months Ended
Dec. 31, 2009 |
| Current Assets: | ||
| Cash and cash equivalents | $659,824 | $699,629 |
| Accounts receivable, net of allowances of $8,038 and $8,119 | 672,586 | 688,260 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 56,674 | 61,239 |
| Inventories | 33,176 | 33,451 |
| Prepaid expenses and other current assets | 83,224 | 100,213 |
| Total current assets | 1,505,484 | 1,582,792 |
| Property and equipment, net of accumulated depreciation of $403,465 and $383,714 | 870,260 | 854,437 |
| Other assets, net | 44,756 | 45,345 |
| Other intangible assets, net of accumulated amortization of $102,015 and $96,167 | 178,994 | 184,822 |
| Goodwill | 1,449,658 | 1,449,558 |
| Total assets | 4,049,152 | 4,116,954 |
| Current Liabilities: | ||
| Current maturities of long-term debt and notes payable | 364 | 3,426 |
| Accounts payable and accrued expenses | 335,725 | 422,034 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | 66,368 | 70,228 |
| Total current liabilities | 402,457 | 495,688 |
| Convertible subordinated notes, net of discount of $16,005 and $17,142 | 127,745 | 126,608 |
| Deferred income taxes | 163,172 | 167,575 |
| Insurance and other non-current liabilities | 217,744 | 216,522 |
| Total liabilities | 911,118 | 1,006,393 |
| Commitments and Contingencies | ||
| Equity: | ||
| Common stock, $.00001 par value, 300,000,000 shares authorized, 213,067,039 and 211,977,811 shares issued and 210,259,275 and 209,378,308 shares outstanding | 2 | 2 |
| Limited Vote Common Stock, $.00001 par value, 3,345,333 shares authorized, 662,293 and 662,293 shares issued and outstanding, respectively | 0 | 0 |
| Additional paid-in capital | 3,069,789 | 3,065,581 |
| Retained earnings | 99,580 | 75,836 |
| Accumulated other comprehensive income (loss) | 6,624 | 3,502 |
| Treasury stock, 2,807,764 and 2,599,503 common shares, at cost | (39,695) | (35,738) |
| Total stockholders' equity | 3,136,300 | 3,109,183 |
| Noncontrolling interest | 1,734 | 1,378 |
| Total equity | 3,138,034 | 3,110,561 |
| Total liabilities and equity | $4,049,152 | $4,116,954 |
| Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | ||
| In Thousands, except Share data | Mar. 31, 2010
| Dec. 31, 2009
|
| Current Assets: | ||
| Allowances on accounts receivable | $8,038 | $8,119 |
| Accumulated depreciation on property and equipment | 403,465 | 383,714 |
| Accumulated amortization on other intangible assets | 102,015 | 96,167 |
| LIABILITIES AND EQUITY | ||
| Discount on convertible subordinated notes | $16,005 | $17,142 |
| Equity: | ||
| Common stock, par value | 0.00001 | 0.00001 |
| Common stock, shares authorized | 300,000,000 | 300,000,000 |
| Common stock, shares issued | 213,067,039 | 211,977,811 |
| Common stock, shares outstanding | 210,259,275 | 209,378,308 |
| Limited vote common stock, par value | 0.00001 | 0.00001 |
| Limited vote common stock, shares authorized | 3,345,333 | 3,345,333 |
| Limited vote common stock, shares issued | 662,293 | 662,293 |
| Limited vote common stock, shares outstanding | 662,293 | 662,293 |
| Treasury stock, common shares | 2,807,764 | 2,599,503 |
| Condensed Consolidated Statements of Operations (Unaudited) (USD $) | ||
| In Thousands, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
| Condensed Consolidated Statements of Operations [Abstract] | ||
| Revenues | $748,283 | $738,530 |
| Cost of services (including depreciation) | 619,141 | 621,399 |
| Gross profit | 129,142 | 117,131 |
| Selling, general and administrative expenses | 81,004 | 73,603 |
| Amortization of intangible assets | 5,848 | 4,906 |
| Operating income | 42,290 | 38,622 |
| Interest expense | (2,864) | (2,818) |
| Interest income | 369 | 1,081 |
| Other income (expense), net | 371 | 76 |
| Income before income taxes | 40,166 | 36,961 |
| Provision for income taxes | 16,066 | 15,471 |
| Net income | 24,100 | 21,490 |
| Less: Net income attributable to noncontrolling interest | 356 | 136 |
| Net income attributable to common stock | $23,744 | $21,354 |
| Earnings per share attributable to common stock: | ||
| Basic earnings per share | 0.11 | 0.11 |
| Diluted earnings per share | 0.11 | 0.11 |
| Shares used in computing earnings per share: | ||
| Weighted average basic shares outstanding | 208,673 | 197,704 |
| Weighted average diluted shares outstanding | 210,342 | 197,733 |
| Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||
| In Thousands | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
| Cash Flows from Operating Activities: | ||
| Net income | $24,100 | $21,490 |
| Adjustments to reconcile net income to net cash provided by operating activities- | ||
| Depreciation | 26,584 | 19,768 |
| Amortization of intangibles | 5,848 | 4,906 |
| Non-cash interest expense | 1,137 | 1,052 |
| Amortization of debt issuance costs | 231 | 230 |
| Amortization of deferred revenues | (1,152) | (2,636) |
| (Gain) loss on sale of property and equipment | (430) | 429 |
| Foreign currency (gain) loss | (285) | 0 |
| Provision for doubtful accounts | (48) | 455 |
| Deferred income tax provision | 11,930 | 4,758 |
| Non-cash stock-based compensation | 6,002 | 4,702 |
| Tax impact of stock-based equity awards | (1,969) | 1,632 |
| (Increase) decrease in- | ||
| Accounts and notes receivable | 16,797 | 108,040 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 4,668 | (5,864) |
| Inventories | 348 | 26 |
| Prepaid expenses and other current assets | 7,697 | 105 |
| Increase (decrease) in- | ||
| Accounts payable and accrued expenses and other non-current liabilities | (94,758) | (55,262) |
| Billings in excess of costs and estimated earnings on uncompleted contracts | (3,867) | 9,186 |
| Other, net | 793 | (1,815) |
| Net cash provided by operating activities | 3,626 | 111,202 |
| Cash Flows from Investing Activities: | ||
| Proceeds from sale of property and equipment | 932 | 1,826 |
| Additions of property and equipment | (43,799) | (41,265) |
| Net cash used in investing activities | (42,867) | (39,439) |
| Cash Flows from Financing Activities: | ||
| Proceeds from other long-term debt | 0 | 1,938 |
| Payments on other long-term debt | (3,294) | (1,137) |
| Tax impact of stock-based equity awards | 1,969 | (1,632) |
| Exercise of stock options | 190 | 119 |
| Net cash used in financing activities | (1,135) | (712) |
| Effect of foreign exchange rate changes on cash and cash equivalents | 571 | (143) |
| Net increase (decrease) in cash and cash equivalents | (39,805) | 70,908 |
| Cash and cash equivalents, beginning of period | 699,629 | 437,901 |
| Cash and cash equivalents, end of period | 659,824 | 508,809 |
| Cash (paid) received during the period for- | ||
| Interest paid | (159) | (160) |
| Income taxes paid | (34,403) | (7,918) |
| Income tax refunds | $1,722 | $948 |
| Business and Organization (Unaudited) | |
| 3 Months Ended
Mar. 31, 2010 | |
| Business and Organization [Abstract] | |
| BUSINESS AND ORGANIZATION | 1. BUSINESS AND ORGANIZATION: Quanta Services, Inc. (Quanta) is a leading national provider of specialized contracting services, offering infrastructure solutions to the electric power, natural gas, oil and telecommunications industries. Quanta reports its results under four reportable segments: (1)Electric Power Infrastructure Services, (2)Natural Gas and Pipeline Infrastructure Services, (3)Telecommunications Infrastructure Services and (4)Fiber Optic Licensing. Electric Power Infrastructure Services Segment The Electric Power Infrastructure Services segment provides comprehensive network solutions to customers in the electric power industry. Services performed by the Electric Power Infrastructure Services segment generally include the design, installation, upgrade, repair and maintenance of electric power transmission and distribution networks and substation facilities along with other engineering and technical services. This segment also provides emergency restoration services, including repairing infrastructure damaged by inclement weather, the energized installation, maintenance and upgrade of electric power infrastructure utilizing unique bare hand and hot stick methods and our proprietary robotic arm technologies, and the installation of smart grid technologies on electric power networks. In addition, this segment designs, installs and maintains wind turbine facilities and solar arrays and related switchyards and transmission networks for renewable power generation sources. To a lesser extent, this segment provides services such as the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of cable and control systems for light rail lines. Natural Gas and Pipeline Infrastructure Services Segment The Natural Gas and Pipeline Infrastructure Services segment provides comprehensive network solutions to customers involved in the transportation of natural gas, oil and other pipeline products. Services performed by the Natural Gas and Pipeline Infrastructure Services segment generally include the design, installation, repair and maintenance of natural gas and oil transmission and distribution systems, compressor and pump stations and gas gathering systems, as well as related trenching, directional boring and automatic welding services. In addition, this segments services include pipeline protection, pipeline integrity and rehabilitation and fabrication of pipeline support systems and related structures and facilities. This segment also provides emergency restoration services, including repairing natural gas and oil pipeline infrastructure damaged by inclement weather. To a lesser extent, this segment designs, installs and maintains airport fueling systems as well as water and sewer infrastructure. Telecommunications Infrastructure Services Segment The Telecommunications Infrastructure Services segment provides comprehensive network solutions to customers in the telecommunications and cable television industries. Services performed by the Telecommunications Infrastructure Services segment generally include the desig |
| Summary of Significant Accounting Policies (Unaudited) | |
| 3 Months Ended
Mar. 31, 2010 | |
| Summary of Significant Accounting Policies [Abstract] | |
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation The consolidated financial statements of Quanta include the accounts of Quanta and its wholly owned subsidiaries, which are also referred to as its operating units. The consolidated financial statements also include the accounts of certain of Quantas investments in joint ventures, which are either consolidated or partially consolidated, as discussed in the following summary of significant accounting policies. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, references to Quanta include Quanta and its consolidated subsidiaries. Interim Condensed Consolidated Financial Information These unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States, have been condensed or omitted pursuant to those rules and regulations. Quanta believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations and cash flows with respect to the interim consolidated financial statements have been included. The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. The results of Quanta have historically been subject to significant seasonal fluctuations. Quanta recommends that these unaudited condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto of Quanta and its subsidiaries included in Quantas Annual Report on Form10-K for the year ended December31, 2009, which was filed with the SEC on March1, 2010. Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist as of the date the financial statements are published and the reported amount of revenues and expenses recognized during the periods presented. Quanta reviews all significant estimates affecting its consolidated financial statements on a recurring basis and records the effect of any necessary adjustments prior to their publication. Judgments and estimates are based on Quantas beliefs and assumptions derived from information available at the time such judgments and estimates are made. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements. Estimates are primarily used in Quantas assessment of the allowance for doubtful accounts, valuation of inventory, useful live |
| New Accounting Pronouncements (Unaudited) | |
| 3 Months Ended
Mar. 31, 2010 | |
| New Accounting Pronouncements [Abstract] | |
| NEW ACCOUNTING PRONOUNCEMENTS | 3. NEW ACCOUNTING PRONOUNCEMENTS: Adoption of New Accounting Pronouncements. On January1, 2010, Quanta adopted new standards aimed to improve the visibility of off-balance sheet vehicles previously exempt from consolidation and address practice issues involving the accounting for transfers of financial assets as sales or secured borrowings. The impact from the adoption of these new standards was not material. |
| Goodwill and Other Intangible Assets (Unaudited) | |
| 3 Months Ended
Mar. 31, 2010 | |
| Goodwill and Other Intangible Assets [Abstract] | |
| GOODWILL AND OTHER INTANGIBLE ASSETS | 4. GOODWILL AND OTHER INTANGIBLE ASSETS: A summary of changes in Quantas goodwill between December31, 2009 and March31, 2010 is as follows (inthousands): Electric Natural Gas Power and Pipeline Telecommunications Division Division Division Total Balance at December31, 2009: Goodwill $ 651,815 $ 337,938 $ 523,069 $ 1,512,822 Accumulated impairment 0 0 (63,264 ) (63,264 ) 651,815 337,938 459,805 1,449,558 Foreign currency translation related to goodwill 115 0 0 115 Purchase price adjustments related to prior periods (15 ) 0 0 (15 ) Balance at March31, 2010: Goodwill 651,915 337,938 523,069 1,512,922 Accumulated impairment 0 0 (63,264 ) (63,264 ) $ 651,915 $ 337,938 $ 459,805 $ 1,449,658 As described in Note2, Quantas operating units are organized into one of Quantas three internal divisions and accordingly, Quantas goodwill associated with each of its operating units has been aggregated on a divisional basis and reported in the table above. These divisions are closely aligned with Quantas reportable segments based on the predominant type of work performed by the operating units within the divisions. Intangible assets are comprised of (in thousands): As of Three Months Ended As of December31, 2009 March31, 2010 March31, 2010 Foreign Intangible Accumulated Amortization Currency Intangible Assets Amortization Expense Adjustments Assets, Net Other intangible assets: Customer relationships $ 127,585 $ (19,234 ) $ (2,091 ) $ 9 $ 106,269 Backlog 92,238 (64,347 ) (2,322 ) 0 25,569 Trade names 23,649 (197 ) (197 ) 0 23,255 Non-compete agreements 21,439 (9,398 ) (921 ) 11 11,131 Patented rights and developed technology 16,078 (2,991 ) (317 ) 0 12,770 Total intangible assets $ 280,989 $ (96,167 ) $ (5,848 ) $ 20 $ 178,994 |
| Per Share Information (Unaudited) | |
| 3 Months Ended
Mar. 31, 2010 | |
| Per Share Information [Abstract] | |
| PER SHARE INFORMATION | 5. PER SHARE INFORMATION: Basic earnings per share is computed using the weighted average number of common shares outstanding during the period, and diluted earnings per share is computed using the weighted average number of common shares outstanding during the period adjusted for all potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be antidilutive. The amounts used to compute the basic and diluted earnings per share for the three months ended March31, 2010 and 2009 are illustrated below (in thousands): Three Months Ended March31, 2010 2009 NET INCOME: Net income attributable to common stock $ 23,744 $ 21,354 Net income attributable to common stock for diluted earnings per share $ 23,744 $ 21,354 WEIGHTED AVERAGE SHARES: Weighted average shares outstanding for basic earnings per share 208,673 197,704 Effect of dilutive stock options 137 29 Effect of shares in escrow 1,532 0 Weighted average shares outstanding for diluted earnings per share 210,342 197,733 For the three months ended March31, 2010 and 2009, stock options for approximately 0.1million and 0.1million shares were excluded from the computation of diluted earnings per share because the grant prices of these common stock equivalents were greater than the average market price of Quantas common stock. For the three months ended March31, 2010 and 2009, the effect of assuming conversion of Quantas 3.75% convertible subordinated notes would have been antidilutive and therefore the shares issuable upon conversion were excluded from the calculation of diluted earnings per share. |
| Debt Obligations (Unaudited) | |
| 3 Months Ended
Mar. 31, 2010 | |
| Debt Obligations [Abstract] | |
| DEBT OBLIGATIONS | 6. DEBT OBLIGATIONS: Credit Facility Quanta has a credit facility with various lenders that provides for a $475.0million senior secured revolving credit facility maturing on September19, 2012. Subject to the conditions specified in the credit facility, borrowings under the credit facility are to be used for working capital, capital expenditures and other general corporate purposes. The entire unused portion of the credit facility is available for the issuance of letters of credit. As of March31, 2010, Quanta had approximately $190.1million of letters of credit issued under the credit facility and no outstanding revolving loans. The remaining $284.9million was available for revolving loans or issuing new letters of credit. Amounts borrowed under the credit facility bear interest, at Quantas option, at a rate equal to either (a)the Eurodollar Rate (as defined in the credit facility) plus 0.875% to 1.75%, as determined by the ratio of Quantas total funded debt to consolidated EBITDA (as defined in the credit facility), or (b)the base rate (as described below) plus 0.00% to 0.75%, as determined by the ratio of Quantas total funded debt to consolidated EBITDA. Letters of credit issued under the credit facility are subject to a letter of credit fee of 0.875% to 1.75%, based on the ratio of Quantas total funded debt to consolidated EBITDA. Quanta is also subject to a commitment fee of 0.15% to 0.35%, based on the ratio of its total funded debt to consolidated EBITDA, on any unused availability under the credit facility. The base rate equals the higher of (i)the Federal Funds Rate (as defined in the credit facility) plus 1/2 of 1% or (ii)the banks prime rate. The credit facility contains certain covenants, including covenants with respect to maximum funded debt to consolidated EBITDA, maximum senior debt to consolidated EBITDA and minimum interest coverage, in each case as specified in the credit facility. For purposes of calculating the maximum funded debt to consolidated EBITDA ratio and the maximum senior debt to consolidated EBITDA ratio, Quantas maximum funded debt and maximum senior debt are reduced by all cash and cash equivalents (as defined in the credit facility) held by Quanta in excess of $25.0million. As of March31, 2010, Quanta was in compliance with all of its covenants. The credit facility limits certain acquisitions, mergers and consolidations, capital expenditures, asset sales and prepayments of indebtedness and, subject to certain exceptions, prohibits liens on material assets. The credit facility also limits the payment of dividends and stock repurchase programs in any fiscal year except those payments or other distributions payable solely in capital stock. The credit facility provides for customary events of default and carries cross-default provisions with Quantas existing subordinated notes, its continuing indemnity and security agreement with its sureties and all of its other debt instruments exceeding $15.0million in borrowings. If an event of default (as defined in the credit facility) occurs and is continuing, on the terms and subject to the conditions set forth in the credit facility, |
| Equity (Unaudited) | |
| 3 Months Ended
Mar. 31, 2010 | |
| Equity [Abstract] | |
| EQUITY | 7. EQUITY: Treasury Stock Pursuant to the stock incentive plans described in Note8, employees may elect to satisfy their tax withholding obligations upon vesting of restricted stock by having Quanta make such tax payments and withhold a number of vested shares having a value on the date of vesting equal to their tax withholding obligation. As a result of such employee elections, Quanta withheld 208,261 and 178,164shares of Quanta common stock with a total market value of $4.0million and $3.1million for settlement of employee tax liabilities during the first quarters of 2010 and 2009. These shares were accounted for as treasury stock. Under Delaware corporate law, treasury stock is not entitled to vote or be counted for quorum purposes. Noncontrolling Interest As further described in Note2, Quanta has a 50% interest in a joint venture that qualifies as a variable interest entity and has been included on a consolidated basis in the accompanying financial statements as described in Note2. As a result, income attributable to the other joint venture member has been accounted for as a reduction of reported net income of approximately $0.4million and $0.1million related to the noncontrolling interest for the quarters ended March31, 2010 and 2009 to derive net income attributable to the common stockholders of Quanta. Equity in the consolidated assets and liabilities of the joint venture attributable to the other joint venture member has been accounted for as a noncontrolling interest component of total equity in the accompanying balance sheets. In conjunction with the Price Gregory acquisition on October1, 2009, Quanta acquired investments in three joint ventures of 65%, 49% and 49%. These investments, which constitute variable interest entities, have been included on a consolidated basis in the accompanying financial statements with a nominal amount recorded as a loss attributable to the other joint venture members. Equity in the consolidated assets and liabilities of the joint ventures attributable to the other joint venture members has been accounted for as a noncontrolling interest component of total equity in the accompanying balance sheet. The carrying value of the investments held by Quanta in all of its variable interest entities was approximately $1.7million and $1.4million at March31, 2010 and December31, 2009. The carrying value of the investment held by the noncontrolling interest in these variable interest entities at March31, 2010 and December31, 2009 was $1.7million and $1.4million. There were no changes in equity as a result of transfers (to) from the noncontrolling interest during the period. Note 9 has further disclosures related to Quantas joint venture arrangements. Comprehensive Income Quantas foreign operations are translated into U.S.dollars, and a translation adjustment is recorded in other comprehensive income (loss), net of tax, as a result. Additionally, unrealized gains and losses on foreign currency cash flow hedges are also recorded in other comprehensive income (loss), net of tax. The following table presents the components of comprehensive income for the periods |
| Stock-Based Compensation (Unaudited) | |
| 3 Months Ended
Mar. 31, 2010 | |
| Stock-Based Compensation [Abstract] | |
| STOCK-BASED COMPENSATION | 8. STOCK-BASED COMPENSATION: Stock Incentive Plans Pursuant to the Quanta Services, Inc. 2007 Stock Incentive Plan (the 2007 Plan), which was adopted on May24, 2007, Quanta may award restricted common stock, incentive stock options and non-qualified stock options. The purpose of the 2007 Plan is to provide directors, key employees, officers and certain consultants and advisors with additional performance incentives by increasing their proprietary interest in Quanta. Prior to the adoption of the 2007 Plan, Quanta had issued awards of restricted common stock and stock options under its 2001 Stock Incentive Plan (as amended and restated March13, 2003) (the 2001 Plan), which was terminated effective May24, 2007, except that outstanding awards will continue to be governed by the terms of the 2001 Plan. In connection with the acquisition of InfraSource Services, Inc. (InfraSource) on August30, 2007, Quanta assumed InfraSources 2003 Omnibus Stock Incentive Plan and 2004 Omnibus Stock Incentive Plan, in each case as amended (the InfraSource Plans). The InfraSource Plans were terminated in connection with the acquisition, although the terms of these plans will govern outstanding awards. The 2007 Plan, the 2001 Plan and the InfraSource Plans are referred to as the Plans. Restricted Stock Restricted common stock has been issued under the Plans at the fair market value of the common stock as of the date of issuance. The shares of restricted common stock issued are subject to forfeiture, restrictions on transfer and certain other conditions until they vest, which generally occurs over three or four years in equal annual installments. During the restriction period, the restricted stockholders are entitled to vote and receive dividends on such shares. During the three months ended March31, 2010 and 2009, Quanta granted 1.1million and 0.9million shares of restricted stock under the 2007 Plan with a weighted average grant price of $19.11 and $22.17. During the three months ended March31, 2010 and 2009, 0.6million and 0.5million shares vested with an approximate fair value at the time of vesting of $11.9million and $9.4million. As of March31, 2010, there was approximately $34.4million of total unrecognized compensation cost related to unvested restricted stock granted to both employees and non-employees. This cost is expected to be recognized over a weighted average period of 2.35years. Stock Options No stock options have been granted by Quanta since November 2002. As of March31, 2010 and December31, 2009, the number of options outstanding under the 2001 Plan, all of which have vested, was not material. Although some options granted under the InfraSource Plans assumed in connection with the InfraSource acquisition are still outstanding, certain disclosures have been omitted due to immateriality. As of March31, 2010, there was approximately $0.5million of total unrecognized compensation cost related to unvested stock options issued under the InfraSource Plans, which is expected to be recognized during 2010. Non-Cash Compensation Expense and Related Tax Benefits The amounts of non-cash compensat |
| Commitments and Contingencies (Unaudited) | |
| 3 Months Ended
Mar. 31, 2010 | |
| Commitments and Contingencies [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | 9. COMMITMENTS AND CONTINGENCIES: Joint Venture Contingencies As described in Notes2 and 7, one of Quantas operating units operates in a joint venture with a third party engineering company for the purpose of providing infrastructure services under a contract with a large utility customer. Losses incurred by the joint venture are typically shared equally by the joint venture members. However, under the terms of the joint venture agreement, each member of the joint venture has guaranteed all of the obligations of the joint venture under the contract with the customer and therefore can be liable for full performance of the contract to the customer. Quanta is not aware of circumstances that would lead to future claims against it for material amounts in connection with this performance guarantee. In addition, as described in Note2, another of Quantas operating units operates in a joint venture with a third party for the purpose of providing joint engineering and construction services for the design and installation of fuel storage facilities under a contract with a specific customer. Under the joint venture agreement, the losses incurred by the joint venture are typically shared equally by the joint venture partners. However, the joint venture is a general partnership, and as such, the joint venture partners are jointly and severally liable for all of the obligations of the joint venture, including obligations owed to the customer or any other person or entity. Quanta is not aware of circumstances that would lead to future claims against it for material amounts in connection with its joint and several liability. In each of the above joint venture arrangements, each joint venturer has indemnified the other for any liabilities incurred in excess of the liabilities for which the joint venturer is obligated to bear under the respective joint venture agreement. It is possible, however, that Quanta could be required to pay or perform obligations in excess of its share if the other joint venturer failed or refused to pay or perform its share of the obligations. Quanta is not aware of circumstances that would lead to future claims against it for material amounts that would not be indemnified. Leases Quanta leases certain land, buildings and equipment under non-cancelable lease agreements, including related party leases. The terms of these agreements vary from lease to lease, including some with renewal options and escalation clauses. The following schedule shows the future minimum lease payments under these leases as of March31, 2010 (in thousands): Operating Leases Year Ending December 31 Remainder of 2010 $ 38,098 2011 36,302 2012 24,253 2013 17,488 2014 8,358 Thereafter 12,538 Total minimum lease payments $ 137,037 Rent expense related to operating leases was approximately $26.8million and $27.9million for the three months ended March31, 2010 and 2009. Quanta has guaranteed the residual value on certain of its equipment operating |
| Segment Information (Unaudited) | |
| 3 Months Ended
Mar. 31, 2010 | |
| Segment Information [Abstract] | |
| SEGMENT INFORMATION | 10. SEGMENT INFORMATION: In connection with the acquisition of Price Gregory and its impact on Quantas divisional structure used for internal management purposes, an updated evaluation of Quantas reportable segments was performed during the third quarter of 2009. As a result, Quantas operations are now presented under four reportable segments: (1)Electric Power Infrastructure Services, (2)Natural Gas and Pipeline Infrastructure Services, (3)Telecommunications Infrastructure Services and (4)Fiber Optic Licensing. This structure is generally focused on broad end-user markets for Quantas services. The Electric Power Infrastructure Services segment provides comprehensive network solutions to customers in the electric power industry. Services performed by the Electric Power Infrastructure Services segment generally include the design, installation, upgrade, repair and maintenance of electric power transmission and distribution networks and substation facilities along with other engineering and technical services. This segment also provides emergency restoration services, including repairing infrastructure damaged by inclement weather, the energized installation, maintenance and upgrade of electric power infrastructure utilizing unique bare hand and hot stick methods and our proprietary robotic arm technologies, and the installation of smart grid technologies on electric power networks. In addition, this segment designs, installs and maintains wind turbine facilities and solar arrays and related switchyards and transmission networks for renewable power generation sources. To a lesser extent, this segment provides services such as the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of cable and control systems for light rail lines. The Natural Gas and Pipeline Infrastructure Services segment provides comprehensive network solutions to customers involved in the transportation of natural gas, oil and other pipeline products. Services performed by the Natural Gas and Pipeline Infrastructure Services segment generally include the design, installation, repair and maintenance of natural gas and oil transmission and distribution systems, compressor and pump stations and gas gathering systems, as well as related trenching, directional boring and automatic welding services. In addition, this segments services include pipeline protection, pipeline integrity and rehabilitation and fabrication of pipeline support systems and related structures and facilities. This segment also provides emergency restoration services, including repairing natural gas and oil pipeline infrastructure damaged by inclement weather. To a lesser extent, this segment designs, installs and maintains airport fueling systems as well as water and sewer infrastructure. The Telecommunications Infrastructure Services segment provides comprehensive network solutions to customers in the telecommunications and cable television industries. Services performed by the Telecommunications Infrastructure Services segment generally include the design, installation, repair and maintenan |
| Subsequent Event (Unaudited) | |
| 3 Months Ended
Mar. 31, 2010 | |
| Subsequent Event [Abstract] | |
| SUBSEQUENT EVENT | 11. SUBSEQUENT EVENT: On April12, 2010, Quanta issued a notice of redemption to the holders of the 3.75%Notes that it will redeem all of the outstanding notes on May14, 2010 (the RedemptionDate) at a redemption price of 101.607% of the principal amount of the 3.75% Notes (the RedemptionPrice), plus accrued and unpaid interest to, but not including, the RedemptionDate. At March31, 2010, the 3.75%Notes had a net carrying value of approximately $127.7million, which is derived from the aggregate principal amount of the notes of $143.8million less a net unamortized debt discount of approximately $16.1million. Under the terms of the indenture, each of the holders of the notes has the right, at its option, to convert all or a portion of the principal amount of its 3.75%Notes into shares of Quantas common stock at the conversion rate of 44.6229shares of common stock for each $1,000 principal amount of notes converted, instead of receiving the RedemptionPrice. As provided by the terms of the indenture, Quanta has elected to satisfy its obligation upon conversion of any of the 3.75%Notes in cash up to $1,000 for each $1,000 principal amount of the notes, with the remaining obligation, if any, satisfied in shares of Quantas common stock. As a result of the redemption and/or conversion of all of the 3.75% Notes, Quanta will reduce its outstanding debt and reduce future cash and non-cash interest expense. Quanta will pay any cash obligations in connection with the redemption or conversion of the 3.75%Notes from cash on hand. Upon the redemption or conversion, as applicable, of all of the outstanding 3.75%Notes, Quanta expects to pay total cash of approximately $146.1million and expects to recognize a loss on extinguishment of debt of approximately $2.4million to $4.4million, net of tax. |
