QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

QUANTA SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Accounts payable and accrued expenses consists of the following (in thousands):
December 31,
2011 2010
Accounts payable, trade .......................................... $343,676 $222,881
Accrued compensation and related expenses .......................... 109,220 74,029
Accrued insurance ............................................... 51,874 56,340
Accrued loss on contracts ......................................... 3,319 1,485
Deferred revenues ............................................... 16,945 16,991
Accrued interest and fees ......................................... 334 114
Income and franchise taxes payable ................................. 47,703 6,578
Other accrued expenses ........................................... 45,854 37,529
8. DEBT OBLIGATIONS:
Quanta’s debt obligations consist of the following (in thousands):
$618,925 $415,947
December 31,
2011 2010
Notes payable to various financial institutions, interest rate ranging from
0.0% to 8.0%, secured by certain equipment and other assets ........... $ 56 $ 1,327
Less — Current maturities ........................................ (56) (1,327)
Total long-term debt obligations .................................... $ — $ —
Credit Facility
Quanta has a credit agreement with various lenders that provides for a $700.0 million senior secured
revolving credit facility maturing on August 2, 2016. The entire amount of the facility is available for the
issuance of letters of credit, and up to $25.0 million of the facility is available for swing line loans. Up to $100.0
million of the facility is available for revolving loans and letters of credit in certain alternative currencies in
addition to the U.S. dollar. Borrowings under the credit agreement are to be used to refinance existing
indebtedness and for working capital, capital expenditures and other general corporate purposes. Quanta entered
into the credit agreement on August 2, 2011, which amended and restated its prior credit agreement.
As of December 31, 2011, Quanta had approximately $191.4 million of letters of credit issued under the
credit facility and no outstanding revolving loans. The remaining $508.6 million was available for revolving
loans or issuing new letters of credit. Amounts borrowed under the credit agreement in U.S. dollars bear interest,
at Quanta’s option, at a rate equal to either (a) the Eurocurrency Rate (as defined in the credit agreement) plus
1.25% to 2.50%, as determined based on Quanta’s Consolidated Leverage Ratio (as described below), plus, if
applicable, any Mandatory Cost (as defined in the credit agreement) required to compensate lenders for the cost
of compliance with certain European regulatory requirements, or (b) the Base Rate (as described below) plus
0.25% to 1.50%, as determined based on Quanta’s Consolidated Leverage Ratio. Amounts borrowed under the
credit agreement in any currency other than U.S. dollars bear interest at a rate equal to the Eurocurrency Rate
plus 1.25% to 2.50%, as determined based on Quanta’s Consolidated Leverage Ratio, plus, if applicable, any
Mandatory Cost. Standby letters of credit issued under the credit agreement are subject to a letter of credit fee of
1.25% to 2.50%, based on Quanta’s Consolidated Leverage Ratio, and Performance Letters of Credit (as defined
in the credit agreement) issued under the credit agreement in support of certain contractual obligations are subject
to a letter of credit fee of 0.75% to 1.50%, based on Quanta’s Consolidated Leverage Ratio. Quanta is also
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