QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

QUANTA SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
6. 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 years ended December 31, 2011, 2010 and 2009 are illustrated below
(in thousands):
Year Ended December 31,
2011 2010 2009
NET INCOME:
Net income attributable to common stock .................. $132,515 $153,176 $162,162
Net income attributable to common stock for diluted earnings
per share .......................................... $132,515 $153,176 $162,162
WEIGHTED AVERAGE SHARES:
Weighted average shares outstanding for basic earnings per
share ............................................. 212,648 210,046 200,733
Effect of dilutive stock options .......................... 126 218 192
Effect of shares in escrow .............................. 394 1,532 386
Weighted average shares outstanding for diluted earnings per
share ............................................. 213,168 211,796 201,311
For the years ended December 31, 2011, 2010 and 2009, a nominal number of stock options were excluded
from the computation of diluted earnings per share because the exercise prices of the stock options were greater
than the average market price of Quanta’s common stock. The 3.9 million exchangeable shares of a Canadian
subsidiary of Quanta that were issued pursuant to the acquisition of Valard on October 25, 2010, which are
exchangeable on a one-for-one basis with shares of Quanta common stock, are included in weighted average
shares outstanding for basic and diluted earnings per share for the full year of 2011 and are weighted for the
portion of 2010 they were outstanding. Shares of Quanta common stock placed in escrow related to a previous
acquisition are included in the computation of diluted earnings per share for the years ended December 31, 2011,
2010 and 2009, and are weighted based on the portion of the year they were held in escrow. These shares were
released from escrow on April 4, 2011. For the years ended December 31, 2010 and 2009, the effect of assuming
conversion of Quanta’s 3.75% convertible subordinated notes due 2026 (3.75% Notes) would have been
antidilutive and therefore the shares issuable upon conversion were excluded from the calculation of diluted
earnings per share. The 3.75% Notes were not outstanding after May 1, 2010 and therefore had no impact on
diluted shares during the year ended December 31, 2011.
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