Employee Benefit Plans

3 Months Ended

Mar. 31, 2022

Postemployment Benefits [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS:

Collective Bargaining Agreements and Multiemployer Pension Plans

Certain of Quanta’s operating companies are parties to collective bargaining agreements with unions that represent certain of their employees. Quanta contributes to a number of multiemployer defined benefit pension plans pursuant to the terms of these collective bargaining agreements. For descriptions and further information regarding these plans and Quanta’s contributions, refer to Note 15 of the Notes to Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data in Part II of the 2021 Annual Report.

Quanta 401(k) Plan

Quanta maintains a 401(k) plan pursuant to which employees who are not provided retirement benefits through a collective bargaining agreement may make contributions through payroll deductions. For descriptions and further information regarding this plan and Quanta’s contributions, refer to Note 15 of the Notes to Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data in Part II of the 2021 Annual Report.

Deferred Compensation Plans

As of March 31, 2022 and December 31, 2021, the deferred compensation liability under Quanta’s deferred compensation plans, including amounts contributed by Quanta, was $74.8 million and $74.2 million, the majority of which was included in “Insurance and other non-current liabilities” in the accompanying condensed consolidated balance sheets. To provide for future obligations related to these deferred compensation plans, Quanta has invested in corporate-owned life insurance (COLI) policies covering certain participants in the deferred compensation plans, the underlying investments of which are intended to be aligned with the investment alternatives elected by plan participants. The COLI policies are recorded at their cash surrender value, which is considered their fair market value, and as of March 31, 2022 and December 31, 2021, the fair market values were $72.4 million and $73.8 million and were included in “Other assets, net” in the accompanying condensed consolidated balance sheets.

During the three months ended March 31, 2022 and 2021, the fair market value of the COLI policies decreased $4.1 million and increased $1.6 million. These changes in fair market value of the COLI policies are recorded in “Other income (expense), net” and were largely offset by corresponding changes in the fair market value of the liabilities associated with Quanta’s deferred compensation plan, which are recorded in “Selling, general and administrative expenses.” During the three months ended March 31, 2022 and 2021, the fair market value of the deferred compensation liability decreased $3.9 million and increased $2.4 million.