QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

QUANTA SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
ISOs awarded to employees owning more than 10% of Quanta’s voting capital stock). Upon the exercise of stock
options, Quanta has historically issued shares of common stock rather than treasury shares or shares purchased
on the open market, although the plan permits any of the three. Quanta did not grant any awards of stock options
under any of the Plans during the years ended December 31, 2011, 2010 or 2009.
Restricted Stock
Awards in the form of restricted stock are subject to forfeiture and other restrictions until they vest.
Restricted shares of Quanta’s common stock have 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 vesting, which generally occurs over three years in equal
annual installments. During the restriction period, holders are entitled to vote and receive dividends on such
shares. The grant date fair value for awards of restricted stock is based on the market value of Quanta common
stock on the date of grant.
During the years ended December 31, 2011, 2010 and 2009, Quanta granted 1.1 million, 1.2 million and
1.1 million shares of restricted stock under the Plans with a weighted average grant date fair value price of
$21.40, $19.20 and $22.10, respectively. During the years ended December 31, 2011, 2010 and 2009, 1.0 million,
0.8 million and 0.6 million shares vested, respectively, with an approximate fair value at the time of vesting of
$21.5 million, $14.7 million and $13.1 million, respectively.
A summary of the restricted stock activity for the year ended December 31, 2011 is as follows (shares in
thousands):
Shares
Weighted
Average
Grant Date
Fair Value
(Per share)
Unvested at January 1, 2011 .......................................... 2,070 $20.68
Granted ........................................................ 1,124 $21.40
Vested ......................................................... (963) $21.32
Forfeited ....................................................... (94) $20.69
Unvested at December 31, 2011 ....................................... 2,137 $20.77
As of December 31, 2011, there was approximately $22.2 million 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 1.62 years.
Restricted Stock Units
RSUs granted by Quanta under the Plans are intended to provide plan participants with cash performance
incentives that are substantially equivalent to the risks and rewards of equity ownership in Quanta by providing
the participants with rights to receive a cash bonus that is determined by reference to Quanta’s common stock
price. The number of RSUs awarded to grantees is determined based on the dollar amount of the grant and the
closing price on the date of grant of a share of Quanta common stock. The RSUs vest over a designated period,
typically three years, and are subject to forfeiture under certain conditions, primarily termination of service.
Upon vesting of RSUs, the holders receive a cash bonus equal to the number of RSUs vested multiplied by
Quanta’s common stock price on the vesting date. In the future, Quanta may also issue RSUs, that upon vesting,
provide for the issuance of Quanta common stock.
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