QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

QUANTA SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Compensation expense related to RSUs was $1.3 million and $0.5 million for the years ended
December 31, 2011 and 2010. Such expense is recorded in selling, general and administrative expenses. As the
RSUs are settled only in cash, they are not included in the calculation of earnings per share, and the estimated
earned value of the RSUs is classified as a liability. Quanta paid $1.0 million and $0.3 million to settle liabilities
related to RSUs in 2011 and 2010. Liabilities recorded under the RSUs were $1.3 million and $0.2 million at
December 31, 2011 and 2010.
Non-Cash Compensation Expense and Related Tax Benefits
The amounts of non-cash compensation expense and related tax benefits, as well as the amount of actual tax
benefits related to vested restricted stock and options exercised are as follows (in thousands):
Year Ended December 31,
2011 2010 2009
Non-cash compensation expense related to restricted stock ............ $21,618 $22,125 $17,415
Non-cash compensation expense related to stock options .............. — 923 2,460
Total stock-based compensation included in selling, general and
administrative expenses ...................................... $21,618 $23,048 $19,875
Actual tax expense for the tax deductions from vested restricted stock . . . $ (1,160) $ (2,089) $ (1,567)
Actual tax benefit (expense) for the tax deductions from options
exercised ................................................. (205) (29) 354
Actual tax expense related to stock-based compensation expense ....... (1,365) (2,118) (1,213)
Income tax benefit related to non-cash compensation expense .......... 8,431 8,989 7,751
Total tax benefit related to stock-based compensation expense ......... $ 7,066 $ 6,871 $ 6,538
12. EMPLOYEE BENEFIT PLANS:
Unions’ Multi-Employer Pension Plans
Quanta contributes to a number of multi-employer defined benefit pension plans under the terms of
collective bargaining agreements with various unions that represent certain of Quanta’s employees. Quanta’s
contribution rates to the multi-employer pension plans generally are specified in the collective bargaining
agreements (usually on an annual basis), and contributions are made to the plans on a “pay-as-you-go” basis
based on its union employee payrolls. Quanta may also have additional liabilities imposed by law as a result of
its participation in multi-employer defined benefit pension plans. The Employee Retirement Income Security Act
of 1974, as amended by the Multi-Employer Pension Plan Amendments Act of 1980, imposes certain liabilities
contingent upon an employer who is a contributor to a multi-employer pension plan if the employer withdraws
from the plan or the plan is terminated or experiences a mass withdrawal. In the fourth quarter of 2011, Quanta
recorded a partial withdrawal liability of approximately $32.6 million related to the withdrawal by certain Quanta
subsidiaries from the Central States, Southeast and Southwest Areas Pension Plan (Central States Plan) following
an amendment to the applicable collective bargaining agreement which eliminated their obligations to contribute
to the Central States Plan. See further information regarding these subsidiaries’ withdrawal from the Central
States Plan in Note 14—Collective Bargaining Agreements.
The Pension Protection Act of 2006 (the PPA) also added special funding and operational rules generally
applicable to plan years beginning after 2007 for multi-employer plans that are classified as “endangered,”
“seriously endangered” or “critical” status based on a multitude of factors (including, for example, the plan’s
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