QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

QUANTA SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
joint venture. Management has concluded that Quanta is the primary beneficiary of each of these joint ventures
and has accounted for each on a consolidated basis. The other parties’ equity interests in these joint ventures have
been accounted for as a noncontrolling interest in the consolidated financial statements. Income attributable to
the other joint venture members has been accounted for as a reduction of reported net income attributable to
common stock in the amount of $11.9 million, $2.4 million and $1.4 million for the years ended December 31,
2011, 2010 and 2009, respectively. Equity in the consolidated assets and liabilities of these joint ventures that is
attributable to the other joint venture members has been accounted for as a component of noncontrolling interests
within total equity in the accompanying balance sheets.
The carrying value of the investments held by Quanta in all of its variable interest entities was
approximately $7.3 million and $1.4 million at December 31, 2011 and 2010. The carrying value of investments
held by the noncontrolling interests in these variable interest entities at December 31, 2011 and 2010 was $7.3
million and $1.4 million. During the years ended December 31, 2011 and 2010, distributions to noncontrolling
interests were $6.0 million and $2.4 million. See Note 14 for further disclosures related to Quanta’s joint venture
arrangements.
Comprehensive Income
Quanta’s foreign operations are translated into U.S. dollars, and a translation adjustment is recorded in other
comprehensive income, net of tax, as a result. Additionally, unrealized gains and losses on certain hedging
activities are recorded in other comprehensive income, net of tax. The following table presents the components of
comprehensive income for the periods presented (in thousands):
Year Ended December 31,
2011 2010 2009
Net income .......................................... $144,416 $155,557 $163,535
Foreign currency translation adjustment, net of tax ........... (12,235) 10,210 6,868
Other ...............................................
Change in unrealized gain (loss) on foreign currency cash flow
(1,177) — —
hedges, net of tax ................................... — 410 (410)
Comprehensive income ................................ 131,004 166,177 169,993
Less: Net income attributable to noncontrolling interests .... 11,901 2,381 1,373
Comprehensive income attributable to common stock ........ $119,103 $163,796 $168,620
In the third quarter of 2009, one of Quanta’s Canadian operating units entered into three forward contracts
with settlement dates in 2009 and 2010, to reduce foreign currency risk associated with anticipated customer
sales that were denominated in South African rand. This same operating unit also entered into three additional
forward contracts with the same settlement dates to reduce the foreign currency exposure associated with a series
of forecasted intercompany payments denominated in U.S. dollars to be made over a twelve-month period. These
contracts were accounted for as cash flow hedges. Accordingly, changes in the fair value of the forward contracts
were recorded in other comprehensive income prior to their settlement and were reclassified into earnings in the
periods in which the hedged transactions occurred.
The South African rand to Canadian dollar forward contracts had an aggregate notional amount of
approximately $11.0 million ($CAD) at origination, and the Canadian dollar to U.S. Dollar forward contracts had
an aggregate notional amount of approximately $9.5 million (U.S.) at origination. During the year ended
December 31, 2010, net losses of $0.4 million were recorded in income in connection with the settled contracts.
There were no forward contracts outstanding at December 31, 2011 or December 31, 2010, and as a result, there
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