10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023.

or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from          to          .

Commission File Number: 001-13831

Quanta Services, Inc.

(Exact name of registrant as specified in its charter)

Delaware	74-2851603
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2727 North Loop West

Houston, Texas 77008

(Address of principal executive offices, including zip code)

(713) 629-7600

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.00001 par value	PWR	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☑    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☑     No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company  ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐     No ☑

As of May 2, 2023, the number of outstanding shares of Common Stock of the registrant was 145,175,564.

QUANTA SERVICES, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

		Page
	PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Comprehensive Income (Loss)	7
	Condensed Consolidated Statements of Cash Flows	8
	Condensed Consolidated Statements of Equity	9
	Notes to Condensed Consolidated Financial Statements	10
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	43
ITEM 4.	Controls and Procedures	43
	PART II. OTHER INFORMATION
ITEM 1.	Legal Proceedings	45
ITEM 1A.	Risk Factors	45
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46
ITEM 3.	Defaults Upon Senior Securities	46
ITEM 4.	Mine Safety Disclosures	46
ITEM 5.	Other Information	46
ITEM 6.	Exhibits	47
Signature		48

1

Cautionary Statement About Forward-Looking Statements and Information

This Quarterly Report on Form 10-Q (Quarterly Report) of Quanta Services, Inc. (together with its subsidiaries, Quanta, we, us or our) includes forward-looking statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “project,” “forecast,” “may,” “will,” “should,” “could,” “expect,” “believe,” “plan,” “intend” and other words of similar meaning. In particular, these include, but are not limited to, statements relating to the following:

•Projected revenues, net income, earnings per share, margins, cash flows, liquidity, weighted average shares outstanding, capital expenditures, interest rates and tax rates, as well as other projections of operating results and GAAP (as defined below) and non-GAAP financial results, including EBITDA, adjusted EBITDA and backlog;

•Expectations regarding our business or financial outlook;

•Expectations regarding opportunities, technological developments, competitive positioning, future economic and regulatory conditions and other trends in particular markets or industries, including with respect to our increased operations in the renewable energy market and the transition to a reduced-carbon economy;

•Expectations regarding our plans and strategies;

•The business plans or financial condition of our customers, including with respect to the transition to a reduced-carbon economy;

•The potential benefits from, and future financial and operational performance of, acquired businesses and our investments;

•Beliefs and assumptions about the collectability of receivables;

•The expected value of contracts or intended contracts with customers, as well as the expected timing, scope, services, term or results of any awarded or expected projects;

•Possible recovery of pending or contemplated insurance claims, change orders and claims asserted against customers or third parties;

•The development of and opportunities with respect to future projects, including renewable energy projects and other projects designed to support transition to a reduced-carbon economy, electrical grid modernization, upgrade and hardening projects and larger transmission and pipeline projects;

•Expectations regarding the future availability and price of materials and equipment necessary for the performance of our business;

•The expected impact of global and domestic economic conditions on our business, financial condition, results of operations, cash flows, liquidity and demand for our services, including inflation, interest rates, recessionary economic conditions and commodity prices and production volumes;

•The expected impact of changes and potential changes in climate and the physical and transition risks associated with climate change and the transition to a reduced-carbon economy;

•Future capital allocation initiatives, including the amount and timing of, and strategies with respect to, any future acquisitions, investments, cash dividends, repurchases of our equity or debt securities or repayments of other outstanding debt;

•The expected impact of existing or potential legislation or regulation;

•Potential opportunities that may be indicated by bidding activity or similar discussions with customers;

•The future demand for, availability of and costs related to labor resources in the industries we serve;

•The expected recognition and realization of our remaining performance obligations or backlog;

•Expectations regarding the outcome of pending or threatened legal proceedings, as well as the collection of amounts awarded in legal proceedings; and

•Expectations with respect to our ability to reduce our debt and maintain our current credit ratings.

These forward-looking statements are not guarantees of future performance; rather they involve or rely on a number of risks, uncertainties, and assumptions that are difficult to predict or are beyond our control and reflect management’s beliefs and assumptions based on information available at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by our forward-looking statements and that any or all of our forward-looking statements may turn out to be inaccurate or incorrect. These statements can be affected by inaccurate assumptions and by known or unknown risks and uncertainties, including the following:

•Market, industry, economic, financial or political conditions that are outside of our control, including economic, energy, infrastructure and environmental policies and plans that are adopted or proposed by the U.S. federal and state governments or other governments in territories or countries in which we operate, inflation, interest rates,

2

recessionary economic conditions, deterioration of global or specific trade relationships, and geopolitical conflicts and political unrest;

•Quarterly variations in our operating and financial results, liquidity, financial condition, cash flows, capital requirements, and reinvestment opportunities;

•Trends and growth opportunities in relevant markets, including our ability to obtain future project awards;

•Delays, deferrals, reductions in scope or cancellations of anticipated, pending or existing projects as a result of, among other things, supply chain disruptions and other logistical challenges, weather, regulatory or permitting issues, environmental processes, project performance issues, claimed force majeure events, protests or other political activity, legal challenges, inflationary pressure, reductions or eliminations in governmental funding or customer capital constraints;

•The effect of commodity prices and commodity production volumes, which have been and may continue to be affected by inflationary pressure, on our operations and growth opportunities and on our customers’ capital programs and demand for our services;

•The successful negotiation, execution, performance and completion of anticipated, pending and existing contracts;

•Events arising from operational hazards, including, among others, wildfires and explosions, that can arise due to the nature of the services we provide and the conditions in which we operate and can be due to failure of infrastructure on which we have performed services and result in significant liabilities that may be exacerbated in certain geographies and locations;

•Unexpected costs, liabilities, fines or penalties that may arise from legal proceedings, indemnity obligations, reimbursement obligations associated with letters of credit or bonds, multiemployer pension plans or other claims or actions asserted against us, including amounts that are not covered by, or are in excess of the coverage under, our third-party insurance;

•Potential unavailability or cancellation of third-party insurance coverage, as well as the exclusion of coverage for certain losses, potential increases in premiums for coverage deemed beneficial to us, or the unavailability of coverage deemed beneficial to us at reasonable and competitive rates (e.g., coverage for wildfire events);

•Damage to our brands or reputation, as well as potential costs, liabilities, fines or penalties, arising as a result of cyber-security breaches, environmental and occupational health and safety matters, corporate scandal, failure to successfully perform or negative publicity regarding a high-profile project, involvement in a catastrophic event (e.g., fire, explosion) or other negative incidents;

•Disruptions in, or failure to adequately protect, our information technology systems;

•Our dependence on suppliers, subcontractors, equipment manufacturers and other third parties and the impact of, among other things, inflationary pressure and regulatory, supply chain and logistical challenges on these third parties;

•Estimates and assumptions related to our financial results, remaining performance obligations and backlog;

•Our inability to attract, the potential shortage of, and increased costs with respect to skilled employees, as well as our ability to retain and attract key personnel and qualified employees;

•Our dependence on fixed price contracts and the potential that we incur losses with respect to these contracts;

•Cancellation provisions within our contracts and the risk that contracts expire and are not renewed or are replaced on less favorable terms;

•Our inability or failure to comply with the terms of our contracts, which may result in additional costs, unexcused delays, warranty claims, failure to meet performance guarantees, damages or contract terminations;

•Adverse weather conditions, natural disasters and other emergencies, including wildfires, pandemics, hurricanes, tropical storms, floods, debris flows, earthquakes and other geological- and weather-related hazards, as well as the impact of climate change;

•Our ability to generate internal growth;

•Competition in our business, including our ability to effectively compete for new projects and market share, as well as technological advancements and market developments that could reduce demand for our services;

•The failure of existing or potential legislative actions and initiatives to result in increased demand for our services or budgetary or other constraints that may reduce or eliminate tax incentives or government funding for projects, including renewable energy projects, which may result in project delays or cancellations;

•The unavailability of, or increased prices for, materials, equipment and consumables (such as fuel) used in our and our customers’ businesses, including as a result of inflation, supply chain disruptions, governmental regulations on sourcing, the imposition of tariffs, duties, taxes or other assessments, and other changes in U.S. trade relationships with foreign countries;

•Loss of customers with whom we have long-standing or significant relationships;

3

•The potential that our participation in joint ventures or similar structures exposes us to liability or harm to our reputation as a result of acts or omissions by our partners;

•The inability or refusal of our customers or third-party contractors to pay for services, which could result in our inability to collect our outstanding receivables, failure to recover amounts billed to, or avoidance of certain payments received from, customers in bankruptcy or failure to recover on change orders or contract claims;

•Risks associated with operating in international markets and U.S. territories, including instability of governments, significant currency exchange fluctuations, and compliance with unfamiliar legal and labor systems and cultural practices, the U.S. Foreign Corrupt Practices Act and other applicable anti-bribery and anti-corruption laws, and complex U.S. and foreign tax regulations and international treaties;

•Our inability to successfully identify, complete, integrate and realize synergies from acquisitions, including the inability to retain key personnel from acquired businesses;

•The potential adverse impact of acquisitions and investments, including the potential increase in risks already existing in our operations, poor performance or decline in value of acquired businesses or investments and unexpected costs or liabilities that may arise from acquisitions or investments;

•The adverse impact of impairments of goodwill, other intangible assets, receivables, long-lived assets or investments;

•Difficulties arising from our decentralized management structure;

•The impact of the unionized portion of our workforce on our operations;

•An inability to access sufficient funding to finance desired growth and operations, including our ability to access capital markets on favorable terms, as well as fluctuations in the price and trading volume of our common stock, debt covenant compliance, interest rate fluctuations, a downgrade in our credit ratings and other factors affecting our financing and investing activities;

•Our ability to obtain bonds, letters of credit and other project security;

•Risks related to the implementation of new information technology systems;

•New or changed tax laws, treaties or regulations or the inability to realize deferred tax assets; and

•The other risks and uncertainties described elsewhere herein, including in Item 1A. Risk Factors of Part I of our Annual Report on Form 10-K for the year ended December 31, 2022 (2022 Annual Report), and as may be detailed from time to time in our other public filings with the U.S. Securities and Exchange Commission (SEC).

All of our forward-looking statements, whether written or oral, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements or that are otherwise included in this report. Although forward-looking statements reflect our good faith beliefs at the time they are made, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. In addition, we do not undertake and expressly disclaim any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this report or otherwise.

4

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

QUANTA SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share information)

(Unaudited)

	March 31, 2023		December 31, 2022
ASSETS
Current Assets:
Cash and cash equivalents	$	217,115	$	428,505
Accounts receivable, net	3,644,623		3,674,525
Contract assets	1,287,454		1,080,206
Inventories	159,164		103,265
Prepaid expenses and other current assets	262,230		249,569
Total current assets	5,570,586		5,536,070
Property and equipment, net	2,191,205		2,030,464
Operating lease right-of-use assets	240,718		229,691
Other assets, net	663,954		622,736
Other intangible assets, net	1,499,574		1,458,631
Goodwill	3,873,098		3,586,745
Total assets	$	14,039,135	$	13,464,337
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt	$	39,691	$	37,495
Current portion of operating lease liabilities	76,410		74,052
Accounts payable and accrued expenses	2,168,174		2,153,129
Contract liabilities	1,143,041		1,141,518
Total current liabilities	3,427,316		3,406,194
Long-term debt, net of current maturities	4,084,408		3,692,432
Operating lease liabilities, net of current portion	181,516		171,512
Deferred income taxes	236,220		227,861
Insurance and other non-current liabilities	587,721		567,519
Total liabilities	8,517,181		8,065,518
Commitments and Contingencies
Equity:
Common stock, $0.00001 par value, 600,000,000 shares authorized, 173,537,555 and 170,638,525 shares issued, and 145,160,159 and 142,930,598 shares outstanding	2		2
Additional paid-in capital	2,869,141		2,718,988
Retained earnings	4,246,158		4,163,212
Accumulated other comprehensive loss	(309,577)		(310,677)
Treasury stock, 28,377,396 and 27,707,927 common shares	(1,292,308)		(1,188,061)
Total stockholders’ equity	5,513,416		5,383,464
Non-controlling interests	8,538		15,355
Total equity	5,521,954		5,398,819
Total liabilities and equity	$	14,039,135	$	13,464,337

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

QUANTA SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share information)

(Unaudited)

	Three Months Ended
	March 31,
	2023		2022
Revenues	$	4,428,826	$	3,965,525
Cost of services	3,855,631		3,417,354
Gross profit	573,195		548,171
Equity in earnings of integral unconsolidated affiliates	9,620		15,152
Selling, general and administrative expenses	(384,552)		(324,887)
Amortization of intangible assets	(72,403)		(115,751)
Change in fair value of contingent consideration liabilities	—		(5,169)
Operating income	125,860		117,516
Interest and other financing expenses	(41,693)		(24,728)
Interest income	1,516		69
Other income (expense), net	7,866		(1,273)
Income before income taxes	93,549		91,584
(Benefit from) provision for income taxes	(3,421)		6,556
Net income	96,970		85,028
Less: Net income attributable to non-controlling interests	1,924		387
Net income attributable to common stock	$	95,046	$	84,641
Earnings per share attributable to common stock:
Basic	$	0.66	$	0.59
Diluted	$	0.64	$	0.57
Shares used in computing earnings per share:
Weighted average basic shares outstanding	144,467		143,541
Weighted average diluted shares outstanding	148,661		148,082

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

QUANTA SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

	Three Months Ended
	March 31,
	2023		2022
Net income	$	96,970	$	85,028
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustment	309		13,528
Other income (loss)	791		(253)
Other comprehensive income, net of taxes	1,100		13,275
Comprehensive income	98,070		98,303
Less: Comprehensive income attributable to non-controlling interests	1,924		387
Comprehensive income attributable to common stock	$	96,146	$	97,916

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

QUANTA SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended
	March 31,
	2023		2022
Cash Flows from Operating Activities:
Net income	$	96,970	$	85,028
Adjustments to reconcile net income to net cash provided by operating activities—
Depreciation	78,382		70,954
Amortization of intangible assets	72,403		115,751
Equity in earnings of unconsolidated affiliates, net of distributions	18,452		(20,490)
Unrealized loss from mark-to-market adjustment on investment	—		8,393
Gains on sales of investments	(2,401)		(6,696)
Amortization of discounts and deferred financing costs	8,122		1,458
Gain on sale of property and equipment	(3,511)		(2,193)
Increase in provision for credit losses	2,358		133
Deferred income tax benefit	(11,997)		(8,098)
Non-cash stock-based compensation	27,451		22,992
Foreign currency (gain) loss	(245)		1,581
Change in fair value of contingent consideration liabilities	—		5,169
Payments for contingent consideration liabilities recorded in earnings	(247)		(63)
Changes in assets and liabilities, net of non-cash transactions	(247,328)		(188,829)
Net cash provided by operating activities	38,409		85,090
Cash Flows from Investing Activities:
Capital expenditures	(80,319)		(109,937)
Proceeds from sale of property and equipment	10,356		8,810
Proceeds from insurance settlements related to property and equipment	395		191
Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired	(452,252)		—
Investments in unconsolidated affiliates and other	(5,492)		(8,319)
Proceeds from the sale or settlement of certain investments	39,069		16,460
Cash paid for intangible assets	(381)		(274)
Net cash used in investing activities	(488,624)		(93,069)
Cash Flows from Financing Activities:
Borrowings under credit facility and commercial paper program	4,431,075		1,369,151
Payments under credit facility and commercial paper program	(4,050,437)		(1,301,146)
Payments on other long-term debt	(3,126)		(2,079)
Net borrowings (repayments) of short-term debt	175		(15,703)
Payments of financing costs	—		(48)
Payments for contingent consideration liabilities recorded at acquisition date	(4,753)		(1,514)
Distributions to non-controlling interests, net of contributions received	(8,741)		(538)
Payments related to tax withholding for share-based compensation	(108,689)		(11,252)
Payments of dividends	(12,817)		(10,842)
Repurchase of common stock	—		(9,479)
Net cash provided by financing activities	242,687		16,550
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	(1,562)		378
Net (decrease) increase in cash, cash equivalents and restricted cash	(209,090)		8,949
Cash, cash equivalents and restricted cash, beginning of period	433,214		231,887
Cash, cash equivalents and restricted cash, end of period	$	224,124	$	240,836

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

QUANTA SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In thousands, except share data)

(Unaudited)

								Accumulated
				Additional				Other				Total		Non-
	Common Stock			Paid-In		Retained		Comprehensive		Treasury		Stockholders’		Controlling		Total
	Shares	Amount		Capital		Earnings		Income (Loss)		Stock		Equity		Interests		Equity
Balance, December 31, 2022	142,930,598	$	2	$	2,718,988	$	4,163,212	$	(310,677)	$	(1,188,061)	$	5,383,464	$	15,355	$	5,398,819
Other comprehensive income	—	—		—		—		1,100		—		1,100		—		1,100
Acquisitions	1,018,946			123,503						—		123,503		—		123,503
Stock-based compensation activity	1,210,615	—		26,650		—		—		(104,247)		(77,597)		—		(77,597)
Dividends declared ($0.08 per share)	—	—		—		(12,100)		—		—		(12,100)		—		(12,100)
Distributions to non-controlling interests	—	—		—		—		—		—		—		(8,741)		(8,741)
Net income	—	—		—		95,046		—		—		95,046		1,924		96,970
Balance, March 31, 2023	145,160,159	$	2	$	2,869,141	$	4,246,158	$	(309,577)	$	(1,292,308)	$	5,513,416	$	8,538	$	5,521,954

								Accumulated
				Additional				Other				Total		Non-
	Common Stock			Paid-In		Retained		Comprehensive		Treasury		Stockholders’		Controlling		Total
	Shares	Amount		Capital		Earnings		Income (Loss)		Stock		Equity		Interests		Equity
Balance, December 31, 2021	142,633,934	$	2	$	2,615,410	$	3,714,843	$	(237,689)	$	(980,265)	$	5,112,301	$	4,620	$	5,116,921
Other comprehensive income	—	—		—		—		13,275		—		13,275		—		13,275
Stock-based compensation activity	1,216,468	—		21,830		—		—		(73,643)		(51,813)		—		(51,813)
Common stock repurchases	(84,798)	—		—		—		—		(10,426)		(10,426)		—		(10,426)
Dividends declared ($0.07 per share)	—	—		—		(10,459)		—		—		(10,459)		—		(10,459)
Distributions to non-controlling interests	—	—		—		—		—		—		—		(538)		(538)
Net income	—	—		—		84,641		—		—		84,641		387		85,028
Balance, March 31, 2022	143,765,604	$	2	$	2,637,240	$	3,789,025	$	(224,414)	$	(1,064,334)	$	5,137,519	$	4,469	$	5,141,988

The accompanying notes are an integral part of these condensed consolidated financial statements.

9

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

TABLE OF CONTENTS

		Page
1.	Business and Organization, Basis of Presentation and Accounting Policies	11
2.	New Accounting Pronouncements	11
3.	Revenue Recognition and Related Balance Sheet Accounts	11
4.	Segment Information	15
5.	Acquisitions	16
6.	Investments in Affiliates and Other Entities	19
7.	Per Share Information	20
8.	Debt Obligations	20
9.	Leases	22
10.	Income Taxes	23
11.	Equity	23
12.	Stock-Based Compensation	24
13.	Employee Benefit Plans	25
14.	Commitments and Contingencies	26
15.	Detail of Certain Accounts	30
16.	Supplemental Cash Flow Information	31

10

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

1. BUSINESS AND ORGANIZATION, BASIS OF PRESENTATION AND ACCOUNTING POLICIES:

Quanta Services, Inc. (together with its subsidiaries, Quanta) is a leading provider of comprehensive infrastructure solutions for the electric and gas utility, renewable energy, communications, pipeline and energy industries in the United States, Canada, Australia and select other international markets.

These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP), have been condensed or omitted pursuant to those rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Quanta’s Annual Report on Form 10-K for the year ended December 31, 2022. Quanta believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income and cash flows with respect to the interim condensed consolidated financial statements have been included. The results of operations and comprehensive income for the interim periods are not necessarily indicative of the results for the entire fiscal year. The results of Quanta have historically been subject to significant seasonal fluctuations.

2. NEW ACCOUNTING PRONOUNCEMENTS:

Recently Adopted Guidance

In October 2021, the Financial Accounting Standards Board (FASB) issued an update that requires recognition and measurement of contract assets and contract liabilities acquired in a business combination in accordance with FASB ASC 606 (Revenue from Contracts with Customers). At the acquisition date, an acquirer should account for the related contract revenue in accordance with FASB ASC 606. This update is effective for interim and annual periods beginning after December 15, 2022, with amendments generally applied prospectively. Quanta adopted this update effective January 1, 2023, and it did not have a material impact on Quanta’s consolidated financial statements.

New Accounting Pronouncement Not Yet Adopted

In June 2022, the FASB issued an update that clarifies the guidance in FASB ASC 820 (Fair Value Measurement) for equity securities subject to contractual sale restrictions. The update prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. This update is effective for interim and annual periods after December 15, 2023. Early adoption is permitted. This guidance will increase the fair market value of the consideration paid in equity securities in a business combination, and therefore it may increase the amount allocated to goodwill. Quanta will adopt this update by January 1, 2024, and it is not expected to have a material impact on Quanta’s consolidated financial statements.

3. REVENUE RECOGNITION AND RELATED BALANCE SHEET ACCOUNTS:

Contracts

Certain of Quanta’s services are generally provided pursuant to master service agreements (MSAs), repair and maintenance contracts and fixed price and non-fixed price construction contracts. These contracts are classified into three categories: unit-price contracts, cost-plus contracts and fixed price contracts.

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The following tables present Quanta’s revenue disaggregated by contract type and by geographic location, as determined by the job location (in thousands):

	Three Months Ended March 31,
	2023				2022
By contract type:
Fixed price contracts	$	1,934,888	43.7	%	$	1,689,635	42.6	%
Unit-price contracts	1,497,394		33.8		1,357,602		34.2
Cost-plus contracts	996,544		22.5		918,288		23.2
Total revenues	$	4,428,826	100.0	%	$	3,965,525	100.0	%

	Three Months Ended March 31,
	2023				2022
By primary geographic location:
United States	$	3,666,365	82.8	%	$	3,323,969	83.8	%
Canada	542,360		12.2		550,905		13.9
Australia	154,677		3.5		55,201		1.4
Others	65,424		1.5		35,450		0.9
Total revenues	$	4,428,826	100.0	%	$	3,965,525	100.0	%

Under fixed-price contracts, as well as unit-price contracts with more than an insignificant amount of partially completed units, revenue is recognized as performance obligations are satisfied over time, with the percentage completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation. Approximately 50.1% and 51.2% of Quanta’s revenues recognized during the three months ended March 31, 2023 and 2022 were associated with this revenue recognition method.

Performance Obligations

As of March 31, 2023 and December 31, 2022, the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations was approximately $10.26 billion and $8.80 billion, with 72.0% and 72.1% expected to be recognized in the subsequent twelve months. These amounts represent management’s estimates of the consolidated revenues that are expected to be realized from the remaining portion of firm orders under fixed price contracts not yet completed or for which work had not yet begun as of such dates. For purposes of calculating remaining performance obligations, Quanta includes all estimated revenues attributable to consolidated joint ventures and variable interest entities, revenues from funded and unfunded portions of government contracts to the extent they are reasonably expected to be realized, and revenues from change orders and claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations are potential orders under MSAs and non-fixed price contracts expected to be completed within one year.

Contract Estimates and Changes in Estimates

Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors, including unforeseen or changed circumstances not included in Quanta’s cost estimates or covered by its contracts. Some of the factors that can result in positive changes in estimates on projects include successful execution through project risks, reduction of estimated project costs or increases of estimated revenues. Some of the factors that can result in negative changes in estimates include concealed or unknown site conditions; changes to or disputes with customers regarding the scope of services; changes in estimates related to the length of time to complete a performance obligation; changes or delays with respect to permitting and regulatory requirements and materials; changes in the cost of equipment, commodities, materials or skilled labor; unanticipated costs or claims due to delays or failure to perform by customers or third parties; customer failure to provide required materials or equipment; errors in engineering, specifications or designs; project modifications; adverse weather conditions, natural disasters, and other emergencies; and performance and quality issues causing delay (including payment of liquidated damages) or requiring rework or replacement. Any changes in estimates could result in changes to profitability or losses associated with the related performance obligations.

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Additionally, changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. Quanta recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated.

As of March 31, 2023 and December 31, 2022, Quanta had recognized revenues of $631.6 million and $549.3 million related to change orders and claims included as contract price adjustments primarily in “Contract assets” in the accompanying consolidated balance sheets. These change orders and claims were in the process of being negotiated in the normal course of business and represent management’s estimates of additional contract revenues that have been earned and are probable of collection.

The largest component of the revenues recognized related to change orders and claims as of March 31, 2023 and of the increase relative to December 31, 2022 is associated with a large renewable transmission project in Canada. During 2021 and the first half of 2022, decreased productivity and additional costs arose from delays, administrative requirements and labor issues due to the COVID-19 pandemic, including incremental governmental requirements and worksite restrictions. Additionally, during the three months ended March 31, 2023, access delays, logistical challenges and other issues outside of Quanta’s control increased costs on the project.

Changes in estimates can result in the recognition of revenue in a current period for performance obligations that were satisfied or partially satisfied in prior periods or the reversal of previously recognized revenue if the currently estimated revenue is less than the previous estimate. The impact of a change in contract estimate is measured as the difference between the revenue or gross profit recognized in the prior period as compared to the revenue or gross profit which would have been recognized had the revised estimate been used as the basis of recognition in the prior period. Changes in estimates can also result in contract losses, which are recognized in full when they are determined to be probable and can be reasonably estimated.

Revenues were positively impacted by 0.1% and 0.8% during the three months ended March 31, 2023 and 2022 as a result of changes in estimates associated with performance obligations on fixed price contracts partially satisfied prior to December 31, 2022 and 2021.

Operating results for the three months ended March 31, 2023 were impacted by less than 5% of gross profit as a result of aggregate changes in contract estimates related to projects that were in progress as of December 31, 2022. There were no material changes in estimates on any individual project.

Operating results for the three months ended March 31, 2022 were favorably impacted by $29.3 million, or 5.3%, of gross profit as a result of aggregate changes in contract estimates related to projects that were in progress as of December 31, 2021. The overall favorable impact resulted from net positive changes in estimates across a large number of projects, primarily as a result of favorable performance and successful mitigation of risks and contingencies as the projects progressed to completion.

Contract Assets and Liabilities

Contract assets and liabilities consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
Contract assets	$	1,287,454	$	1,080,206
Contract liabilities	$	1,143,041	$	1,141,518

Contract assets and liabilities fluctuate period to period based on various factors, including, among others, changes in the number and size of projects in progress at period end; variability in billing and payment terms, such as up-front or advance billings, interim or milestone billings, or deferred billings; and unapproved change orders and contract claims recognized as revenues. The increase in contract assets from December 31, 2022 to March 31, 2023 was primarily due to additional unapproved change orders and claims related to the large renewable transmission project in Canada described above as well as progress on other jobs in which there was a lag in the timing of billings.

During the three months ended March 31, 2023, Quanta recognized revenue of approximately $641.1 million related to contract liabilities outstanding as of the end of the prior year.

Accounts Receivable, Allowance for Credit Losses and Concentrations of Credit Risk

Quanta determines its allowance for credit losses based on an estimate of expected credit losses for financial instruments, primarily accounts receivable and contract assets. The assessment of the allowance for credit losses involves certain judgments

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and estimates. Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Expected credit losses are estimated by evaluating trends in historical write-off experience and applying historical loss ratios to pools of financial assets with similar risk characteristics.

Quanta’s historical loss ratio and its determination of its risk pools, which are used to calculate expected credit losses, may be adjusted for changes in customer credit concentrations within its portfolio of financial assets, its customers’ ability to pay, and other considerations, such as economic and market changes, changes to regulatory or technological environments affecting customers and the consistency between current and forecasted economic conditions and historical economic conditions used to derive historical loss ratios. At the end of each quarter, management reassesses these and other relevant factors, including the impact of uncertainty and challenges in the overall economy and in Quanta’s industries and markets, which currently include inflationary pressure, supply chain and other logistical challenges and increased interest rates.

Additional allowance for credit losses is established for financial asset balances with specific customers where collectability has been determined to be improbable based on customer specific facts and circumstances. Quanta considers accounts receivable delinquent after 30 days but, absent certain specific considerations, generally does not consider such amounts delinquent in its credit loss analysis unless the accounts receivable are at least 120 days past due. In addition, management monitors the credit quality of its receivables by, among other things, obtaining credit ratings for significant customers, assessing economic and market conditions and evaluating material changes to a customer’s business, cash flows and financial condition. Should anticipated recoveries relating to receivables fail to materialize, including anticipated recoveries relating to bankruptcies or other workout situations, Quanta could experience reduced cash flows and losses in excess of current allowances provided.

Accounts receivable are written-off against the allowance for credit losses if they are deemed uncollectible.

Activity in Quanta’s allowance for credit losses consisted of the following (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Balance at beginning of period	$	15,644	$	49,749
Increase in provision for credit losses	2,358		133
Write-offs charged against the allowance net of recoveries of amounts previously written off	(1,472)		34
Balance at end of period	$	16,530	$	49,916

Provision for credit losses is included in “Selling, general and administrative expenses” in the consolidated statements of operations.

Quanta is subject to concentrations of credit risk related primarily to its receivable position with customers, which includes amounts related to billed and unbilled accounts receivable and contract assets for services Quanta has performed for customers. Quanta grants credit under normal payment terms, generally without collateral. One customer within the Renewable Energy Infrastructure Solutions segment represented 15% and 13% of Quanta’s consolidated receivable position as of March 31, 2023 and December 31, 2022. Another customer, primarily in Quanta’s Electric Power Infrastructure Solutions and Renewable Energy Infrastructure Solutions segments, represented 11% of Quanta’s consolidated revenues for the three months ended March 31, 2022. No customer represented 10% or more of Quanta’s consolidated revenues for the three months ended March 31, 2023.

Certain contracts allow customers to withhold a small percentage of billings pursuant to retainage provisions, and such amounts are generally due upon completion of the contract and acceptance of the project by the customer. Based on Quanta’s experience in recent years, the majority of these retainage balances are expected to be collected within one year. Retainage balances with expected settlement dates within one year of March 31, 2023 and December 31, 2022 were $392.5 million and $397.6 million, which are included in “Accounts receivable.” Retainage balances with expected settlement dates beyond one year were $187.7 million and $136.2 million as of March 31, 2023 and December 31, 2022 and are included in “Other assets, net.”

Quanta recognizes unbilled receivables for non-fixed price contracts within “Accounts receivable” in certain circumstances, such as when revenues have been earned and recorded but the amount cannot be billed under the terms of the contract until a later date or when amounts arise from routine lags in billing. These balances do not include revenues recognized for work performed under fixed-price contracts and unit-price contracts with more than an insignificant amount of partially

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completed units, as these amounts are recorded as “Contract assets.” As of March 31, 2023 and December 31, 2022, unbilled receivables included in “Accounts receivable” were $923.1 million and $823.9 million. The increase in unbilled receivables was primarily due to significant increases in work and certain delays in billing related to certain large customers. Quanta also recognizes unearned revenues for non-fixed price contracts when cash is received prior to recognizing revenues for the related performance obligation. Unearned revenues, which are included in “Accounts payable and accrued expenses,” were $75.2 million and $59.6 million as of March 31, 2023 and December 31, 2022.

4. SEGMENT INFORMATION:

Quanta reports its results under three reportable segments described below:

•Electric Power Infrastructure Solutions (Electric Power). Quanta’s Electric Power segment provides comprehensive services for the electric power and communications markets.

•Renewable Energy Infrastructure Solutions (Renewable Energy). Quanta’s Renewable Energy segment provides comprehensive infrastructure solutions to customers that are involved in the renewable energy industry.

•Underground Utility and Infrastructure Solutions (Underground and Infrastructure). Quanta’s Underground and Infrastructure segment provides comprehensive infrastructure solutions to customers involved in the transportation, distribution, storage, development and processing of natural gas, oil and other products.

Corporate and Non-allocated Costs include corporate facility costs; non-allocated corporate salaries, benefits and incentive compensation; acquisition and integration costs; non-cash stock-based compensation; amortization related to intangible assets; asset impairment related to goodwill and intangible assets; and change in fair value of contingent consideration liabilities.

The following table sets forth segment revenues and segment operating income (loss) for the three months ended March 31, 2023 and 2022. The following table shows dollars in thousands:

	Three Months Ended March 31,
	2023				2022
Revenues:
Electric Power Infrastructure Solutions	$	2,336,037	52.7	%	$	2,138,697	53.9	%
Renewable Energy Infrastructure Solutions	1,008,300		22.8		875,632		22.1
Underground Utility and Infrastructure Solutions	1,084,489		24.5		951,196		24.0
Consolidated revenues	$	4,428,826	100.0	%	$	3,965,525	100.0	%
Operating income (loss):
Electric Power Infrastructure Solutions (1)	$	215,149	9.2	%	$	203,419	9.5	%
Renewable Energy Infrastructure Solutions	35,656		3.5	%	69,942		8.0	%
Underground Utility and Infrastructure Solutions	61,573		5.7	%	48,175		5.1	%
Corporate and Non-Allocated Costs (2)	(186,518)		(4.2)	%	(204,020)		(5.1)	%
Consolidated operating income	$	125,860	2.8	%	$	117,516	3.0	%

(1)    Includes equity in earnings of integral unconsolidated affiliates of $9.6 million and $15.2 million for the three months ended March 31, 2023 and 2022, primarily related to Quanta’s equity interest in LUMA Energy, LLC (LUMA).

(2)    Includes amortization expense of $72.4 million and $115.8 million and non-cash stock-based compensation of $27.5 million and $23.0 million for the three months ended March 31, 2023 and 2022.

Depreciation Expense Allocation

Separate measures of Quanta’s assets and cash flows by reportable segment, including capital expenditures, are not produced or utilized by management to evaluate segment performance. Quanta’s fixed assets are generally used on an interchangeable basis across its reportable segments. As such, for reporting purposes, total depreciation expense is allocated

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each quarter among Quanta’s reportable segments based on the ratio of each reportable segment’s revenue contribution to consolidated revenues. The following table shows dollars in thousands:

	Three Months Ended
	March 31,
	2023		2022
Depreciation:
Electric Power Infrastructure Solutions	$	42,085	$	36,779
Renewable Energy Infrastructure Solutions	10,858		8,233
Underground Utility and Infrastructure Solutions	20,500		20,938
Corporate and Non-Allocated Costs	4,939		5,004
Consolidated depreciation	$	78,382	$	70,954

Foreign Operations

During the three months ended March 31, 2023 and 2022, Quanta derived $762.5 million and $641.6 million of its revenues from foreign operations. Of Quanta’s foreign revenues, 71% and 86% were earned in Canada during the three months ended March 31, 2023 and 2022. In addition, Quanta held property and equipment, net of $293.4 million and $298.0 million in foreign countries, primarily Canada, as of March 31, 2023 and December 31, 2022.

5. ACQUISITIONS:

The results of operations of acquired businesses have been included in Quanta’s consolidated financial statements since their respective acquisition dates.

In January 2023, Quanta acquired three businesses located in the United States including: a business that provides services related to high-voltage transmission lines, overhead and underground distribution, emergency restoration and industrial and commercial wiring and lighting (primarily included in the Electric Power segment); a business that procures parts, assembles kits for sale, manages logistics and installs solar tracking equipment for utility and development customers (primarily included in the Renewable Energy segment); and a business that provides concrete construction services (primarily included in the Electric Power and Renewable Energy segments). The consideration for these transactions consisted of approximately $463.5 million paid or payable in cash (subject to certain adjustments) and 1,018,946 shares of Quanta common stock, which had a fair value of $123.5 million as of the dates of the acquisitions.

In July 2022, Quanta acquired a business located in the United States that provides construction contracting services to utilities, specializing in trenching and underground pipeline and electrical conduit installation. The consideration for this transaction included $22.3 million paid or payable in cash (subject to certain adjustments). Additionally, the former owners of this business are eligible to receive a potential payment of contingent consideration to the extent the acquired business achieves certain financial performance targets over a five-year post-acquisition period. The results of the acquired business are primarily included in the Electric Power segment.

Purchase Price Allocation

Quanta is finalizing its purchase price allocations related to businesses acquired subsequent to March 31, 2022, and further adjustments to the purchase price allocations may occur, with possible updates primarily related to property and equipment, identifiable intangible assets, tax estimates and the finalization of closing working capital adjustments. The aggregate consideration paid or payable for businesses acquired between March 31, 2022 and March 31, 2023 was allocated to acquired assets and assumed liabilities, which resulted in an allocation of $186.6 million to net tangible assets, $126.1 million to identifiable intangible assets and $299.2 million to goodwill. The following table summarizes the fair value of total consideration transferred or estimated to be transferred and the fair value of assets acquired and liabilities assumed as of their respective acquisition dates as of March 31, 2023 for acquisitions completed in the three months ended March 31, 2023 (in

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thousands):

	Three Months Ended
	March 31, 2023
Consideration:
Cash paid or payable	$	463,482
Value of Quanta common stock issued	123,503
Fair value of total consideration transferred or estimated to be transferred	$	586,985
Cash and cash equivalents	$	14,832
Accounts receivable	46,389
Contract assets	195
Inventories	56,960
Prepaid expenses and other current assets	4,392
Property and equipment	146,150
Operating lease assets	14,189
Other assets	4,553
Identifiable intangible assets	113,020
Accounts payable and accrued liabilities	(61,872)
Contract liabilities	(3,071)
Operating lease liabilities, current	(2,552)
Deferred tax liabilities, net	(20,556)
Operating lease liabilities, non-current	(12,242)
Total identifiable net assets	300,387
Goodwill	286,598
Fair value of net assets acquired	$	586,985

As of March 31, 2023, approximately $233.5 million of goodwill is expected to be deductible for income tax purposes related to acquisitions completed in the three months ended March 31, 2023.

The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in the three months ended March 31, 2023 as of the acquisition dates and the related weighted average amortization periods by type (in thousands, except for weighted average amortization periods, which are in years).    

	Three Months Ended
	March 31, 2023
	Estimated Fair Value		Weighted Average Amortization Period in Years
Customer relationships	$	79,640	4.6
Backlog	16,115		0.9
Trade names	12,815		15.0
Non-compete agreements	4,450		5.0
Total intangible assets subject to amortization	$	113,020

The significant estimates used by management in determining the fair values of customer relationship intangible assets include future revenues, discount rates and customer attrition rates. The following table includes the discount rates and

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customer attrition rates used to determine the fair value of customer relationship intangible assets for businesses acquired during the three months ended March 31, 2023 as of the respective acquisition dates:

	Three Months Ended
	March 31, 2023
	Range	Weighted Average
Discount rates	15% to 19%	17%
Customer attrition rates	15% to 20%	19%

Contingent Consideration

As described above, certain business acquisitions have contingent consideration liabilities associated with the transactions. The aggregate fair value of these outstanding contingent consideration liabilities and their classification in the accompanying consolidated balance sheets is as follows (in thousands):

	March 31, 2023		December 31, 2022
Accounts payable and accrued expenses	$	—	$	5,000
Insurance and other non-current liabilities	143,517		143,517
Total contingent consideration liabilities	$	143,517	$	148,517

The fair value determinations of contingent consideration liabilities incorporate significant inputs not observable in the market. Accordingly, the level of inputs used for these fair value measurements is Level 3. The following table includes the volatility factors, weighted average costs of capital and discount rates used to determine the fair value of contingent consideration liabilities during the three months ended March 31, 2023:

	Three Months Ended
	March 31, 2023
	Range	Weighted Average
Volatility factors	35.0% to 43.0%	35.2%
Weighted average cost of capital	14.0% to 15.50%	14.0%
Discount rates	4.06% to 6.20%	6.2%

The majority of Quanta’s outstanding contingent consideration liabilities are subject to a maximum payment amount, and the aggregate maximum payment amount of these liabilities totaled $321.7 million as of March 31, 2023. During the three months ended March 31, 2023 and 2022, Quanta settled certain contingent consideration liabilities with cash payments of $5.0 million and $1.6 million.

Pro Forma Results of Operations

The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in the three months ended March 31, 2023 and the year ended December 31, 2022, have been provided for illustrative purposes only and may not be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future (in thousands).

	Three Months Ended
	March 31,
	2023		2022
Revenues	$	4,428,826	$	4,091,762
Net income attributable to common stock	$	95,046	$	84,567

The pro forma combined results of operations for the three months ended March 31, 2023 and 2022 were prepared by adjusting the historical results of Quanta to include the historical results of the businesses acquired in 2023 as if such acquisitions had occurred January 1, 2022. The pro forma combined results of operations for the three months ended March 31, 2022 were prepared by adjusting the historical results of Quanta to include the historical results of the business acquired in 2022 as if such acquisition had occurred January 1, 2021. These pro forma combined historical results were adjusted for the following: a reduction of interest and other financing expenses as a result of the repayment of outstanding indebtedness of the

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acquired businesses; an increase in interest and other financing expenses as a result of the cash consideration paid; an increase in amortization expense due to the intangible assets recorded; elimination of inter-company sales; and changes in depreciation expense to adjust acquired property and equipment to the acquisition date fair value and to conform with Quanta’s accounting policies. The pro forma combined results of operations do not include any adjustments to eliminate the impact of acquisition-related costs incurred by Quanta or any cost savings or other synergies that resulted or may result from the acquisitions.

Results of Operations

Revenues of $93.5 million and a loss before income taxes of $16.1 million, which includes $8.6 million of amortization expense and $17.8 million of acquisition-related costs, related to the acquisitions completed in 2023 are included in Quanta’s condensed consolidated results of operations for the three months ended March 31, 2023.

6. INVESTMENTS IN AFFILIATES AND OTHER ENTITIES:

Equity Investments

The following table presents Quanta’s equity investments by type (in thousands):

	March 31, 2023		December 31, 2022
Equity method investments - integral unconsolidated affiliates	$	98,762	$	101,251
Equity method investments - non-integral unconsolidated affiliates	29,088		55,833
Marketable equity securities	—		—
Non-marketable equity securities	54,152		54,134
Total equity investments	$	182,002	$	211,218

Equity Method Investments

During the three months ended December 31, 2022, Quanta entered into an agreement to sell one of its non-integral equity method investments. The transaction was subject to certain customary closing conditions that were satisfied in early 2023. As a result, a $25.9 million gain was recognized in the fourth quarter of 2022, $10.4 million of which is attributable to non-controlling interests. During the three months ended March 31, 2023, Quanta received cash of $56.6 million related to the sale of this investment, $8.7 million of which was distributed to non-controlling interests.

As of March 31, 2023 and December 31, 2022, Quanta had receivables of $21.3 million and $96.9 million from its integral affiliates and payables of $8.7 million and $9.3 million to its integral affiliates. During the three months ended March 31, 2023 and 2022, Quanta recognized revenues of $48.3 million and $25.1 million from services provided to its integral affiliates, primarily for services provided to LUMA at cost. In addition, during the three months ended March 31, 2023 and 2022, Quanta recognized costs of sales of $12.0 million and $50.4 million for services provided by other integral affiliates.

Total equity in earnings from integral unconsolidated affiliates were $9.6 million and $15.2 million for the three months ended March 31, 2023 and 2022. Total equity in earnings from non-integral unconsolidated affiliates were $1.6 million and $5.3 million for the three months ended March 31, 2023 and 2022 and included in “Other income (expense), net” in the accompanying condensed consolidated statements of income. As of March 31, 2023, retained earnings included $19.6 million related to the undistributed earnings of unconsolidated affiliates.

Marketable and Non-Marketable Equity Securities

As of March 31, 2023 and December 31, 2022, the fair value of Quanta’s investment in equity securities of Starry Group Holdings, Inc. (Starry) was zero and the unrealized loss related to these securities was $91.5 million.

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7. PER SHARE INFORMATION:

The amounts used to compute basic and diluted earnings per share attributable to common stock consisted of the following (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Amounts attributable to common stock:
Net income attributable to common stock	$	95,046	$	84,641
Weighted average shares:
Weighted average shares outstanding for basic earnings per share attributable to common stock	144,467		143,541
Effect of dilutive unvested non-participating stock-based awards	4,194		4,541
Weighted average shares outstanding for diluted earnings per share attributable to common stock	148,661		148,082

8. DEBT OBLIGATIONS:

Quanta’s long-term debt obligations consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
0.950% Senior Notes due October 2024	$	500,000	$	500,000
2.900% Senior Notes due October 2030	1,000,000		1,000,000
2.350% Senior Notes due January 2032	500,000		500,000
3.050% Senior Notes due October 2041	500,000		500,000
Borrowings under senior credit facility (including Term Loan)	942,100		786,910
Borrowings under commercial paper program	598,750		373,000
Other long-term debt	92,268		92,907
Finance leases	16,577		3,542
Unamortized discount and financing costs	(25,596)		(26,432)
Total long-term debt obligations	4,124,099		3,729,927
Less — Current maturities of long-term debt	39,691		37,495
Total long-term debt obligations, net of current maturities	$	4,084,408	$	3,692,432

Senior Notes

The interest amounts due on Quanta’s senior notes on each payment date are set forth below (dollars in thousands):

Title of the Notes	Interest Amount		Payment Dates	Commencement Date
0.950% Senior Notes due October 2024	$	2,375	April 1 and October 1	April 1, 2022
2.900% Senior Notes due October 2030	$	14,500	April 1 and October 1	April 1, 2021
2.350% Senior Notes due January 2032	$	5,875	January 15 and July 15	July 15, 2022
3.050% Senior Notes due October 2041	$	7,625	April 1 and October 1	April 1, 2022

The fair value of Quanta’s senior notes was $2.08 billion as of March 31, 2023, compared to a carrying value of $2.48 billion net of unamortized bond discount, underwriting discounts and deferred financing costs of $23.0 million. The fair value of the senior notes is based on the quoted market prices for the same issue, and the senior notes are categorized as Level 1 liabilities.

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Senior Credit Facility

The credit agreement for Quanta’s senior credit facility (as amended, the credit agreement) provides for a $750.0 million term loan facility and aggregate revolving commitments of $2.64 billion, with a maturity date of October 8, 2026. Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands):

	Three Months Ended
	March 31,
	2023			2022
Maximum amount outstanding	$	956,308		$	1,451,597
Average daily amount outstanding	$	859,270		$	1,256,150
Weighted-average interest rate	5.99		%	1.71		%

As of March 31, 2023, Quanta was in compliance with all of the financial covenants under the credit agreement.

Term Loan. As of March 31, 2023, Quanta had $745.3 million outstanding under its term loan facility. The carrying amount of the term loan under Quanta’s senior credit facility approximates fair value due to its variable interest rate.

Revolving Loans. As of March 31, 2023, Quanta had $196.8 million of outstanding revolving loans under the senior credit facility, all of which were denominated in Canadian dollars. The carrying amounts of the revolving borrowings under Quanta’s senior credit facility approximate fair value, as all revolving borrowings have a variable interest rate.

As of March 31, 2023, Quanta also had $272.2 million of letters of credit issued under the senior credit facility, of which $175.3 million were denominated in U.S. dollars and $96.9 million were denominated in currencies other than the U.S. dollar, primarily Australian and Canadian dollars. Additionally, available commitments for revolving loans under the senior credit facility must be maintained in order to provide credit support for notes issued under Quanta’s commercial paper program, and therefore such notes effectively reduce the available borrowing capacity under the senior credit facility.

As of March 31, 2023, $1.57 billion remained available under the senior credit facility for new revolving loans, letters of credit and support of the commercial paper program.

Deferred Financing Costs. As of March 31, 2023 and December 31, 2022, capitalized deferred financing costs, net of accumulated amortization, related to Quanta’s revolving loans under its senior credit facility and commercial paper program were $7.8 million and $8.3 million and are included in “Other assets, net” in the accompanying condensed consolidated balance sheets. Amortization of deferred financing costs for all debt instruments and the discount related to notes issued under the commercial paper program are included in interest and other financing expenses and were, in the aggregate, $8.1 million and $1.5 million for the three months ended March 31, 2023 and 2022.

Commercial Paper Program

Quanta had $598.8 million of outstanding notes under its unsecured commercial paper program as of March 31, 2023, with a weighted average interest rate of 5.9%. During the three months ended March 31, 2023, under this program, Quanta had maximum borrowings outstanding of $747.7 million, weighted average borrowings outstanding of $494.6 million, a weighted average interest rate of 5.4% and a weighted average maturity of 14 days. The carrying amounts of the notes issued under Quanta’s commercial paper program approximate fair value, as all notes currently have a short maturity.

Additional Letters of Credit

As of March 31, 2023 Quanta had $190.1 million of surety-backed letters of credit issued outside of its senior credit facility, which were denominated in U.S. dollars.

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9. LEASES:

Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. The components of lease costs in the accompanying condensed consolidated statements of operations are as follows (in thousands):

		Three Months Ended
		March 31,
Lease cost	Classification	2023		2022
Finance lease cost:
Amortization of lease assets	Depreciation (1)	$	911	$	440
Interest on lease liabilities	Interest and other financing expenses	208		27
Operating lease cost	Cost of services and Selling, general and administrative expenses	23,223		24,877
Short-term and variable lease cost (2)	Cost of services and Selling, general and administrative expenses	238,078		219,299
Total lease cost		$	262,420	$	244,643

(1)    Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of operations.

(2)    Short-term lease cost includes both leases and rentals with initial terms of one year or less. Variable lease cost is insignificant.

Related party lease expense was $3.9 million and $3.6 million for the three months ended March 31, 2023 and 2022.

Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands):

	As of March 31, 2023
	Operating Leases		Finance Leases		Lease Financing Transactions		Total
Remainder of 2023	$	65,507	$	1,159	$	12,870	$	79,536
2024	70,456		3,950		14,345		88,751
2025	53,957		3,845		12,577		70,379
2026	39,185		3,628		13,111		55,924
2027	24,428		3,229		10,491		38,148
Thereafter	27,814		852		20,190		48,856
Total future minimum payments related to operating leases, finance leases and lease financing transactions	281,347		16,663		83,584		381,594
Less imputed interest	(23,421)		(86)		—		(23,507)
Total operating lease, finance lease and lease financing transaction liabilities	$	257,926	$	16,577	$	83,584	$	358,087

Future minimum lease payments for short-term leases were $21.4 million as of March 31, 2023.

The weighted average remaining lease terms and discount rates were as follows:

	As of March 31, 2023
Weighted average remaining lease term (in years):
Operating leases	4.32
Finance leases	5.23
Weighted average discount rate:
Operating leases	3.8	%
Finance leases	5.0	%

Quanta has also guaranteed the residual value under certain of its equipment operating leases and real estate finance leases, agreeing to pay any difference between the residual value and the fair market value of the underlying asset at the date of

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lease termination. The fair value of the assets at the time of lease termination generally approximates or exceeds the residual value guarantees, and therefore such guarantees are not expected to result in significant payments.

10. INCOME TAXES:

Quanta’s effective tax rates for the three months ended March 31, 2023 and 2022 were a benefit of 3.7% and a provision of 7.2%. The tax rates for the three months ended March 31, 2023 and 2022 were favorably impacted by the recognition of $32.0 million and $20.3 million of benefits that resulted from equity incentive awards vesting at a higher fair market value than their grant date fair value.

Quanta regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain, including in connection with changes in tax laws. The estimation of required valuation allowances includes estimates of future taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Quanta considers projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income differs from these estimates, Quanta may not realize deferred tax assets to the extent estimated. During 2022, Quanta recorded a valuation allowance against unrealized capital losses related to its minority investment in Starry. During the three months ended March 31, 2023, Starry filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code, as amended. Upon resolution of the bankruptcy proceedings, a portion of Quanta’s unrealized losses may become deductible for income tax purposes.

As of March 31, 2023, the total amount of unrecognized tax benefits relating to uncertain tax positions was $44.1 million, a net increase of $2.5 million from December 31, 2022, which primarily resulted from a $2.5 million increase related to positions expected to be taken in 2023. Quanta’s consolidated federal income tax returns for tax years 2017 through 2021 remain open to examination by the IRS, as the applicable statute of limitations periods have not yet expired. Additionally, various state and foreign tax returns filed by Quanta and certain subsidiaries for multiple periods remain under examination by various U.S. state and foreign tax authorities. Quanta does not consider any state in which it does business to be a major tax jurisdiction. Quanta believes it is reasonably possible that within the next 12 months unrecognized tax benefits may decrease by up to $12.1 million as a result of settlement of these examinations or as a result of the expiration of certain statute of limitations periods.

11. EQUITY:

Stock Repurchases

Quanta repurchased the following shares of common stock in the open market under its stock repurchase program (in thousands):

Quarter ended:	Shares	Amount
March 31, 2023	—	$	—
December 31, 2022	87	$	11,403
September 30, 2022	158	$	21,033
June 30, 2022	731	$	84,884
March 31, 2022	85	$	10,426

Quanta’s policy is to record a stock repurchase as of the trade date of the transaction; however, the payment of cash related to the repurchase is made on the settlement date of the transaction. During the three months ended March 31, 2022, cash payments related to stock repurchases were $9.5 million. Repurchases may be implemented through open market repurchases or privately negotiated transactions, at management’s discretion, based on market and business conditions, applicable contractual and legal requirements, including restrictions under Quanta’s senior credit facility, and other factors. Quanta is not obligated to acquire any specific amount of common stock, and the repurchase program may be modified or terminated by Quanta’s Board of Directors at any time at its sole discretion and without notice.

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Dividends

Quanta declared and paid the following cash dividends and cash dividend equivalents during 2022 and the first three months of 2023 (in thousands, except per share amounts):

Declaration	Record	Payment	Dividend		Dividends
Date	Date	Date	Per Share		Declared
March 29, 2023	April 10, 2023	April 18, 2023	$	0.08	$	12,100
December 13, 2022	January 3, 2023	January 13, 2023	$	0.08	$	11,756
August 31, 2022	October 3, 2022	October 14, 2022	$	0.07	$	10,322
May 27, 2022	July 1, 2022	July 15, 2022	$	0.07	$	10,283
March 30, 2022	April 11, 2022	April 18, 2022	$	0.07	$	10,459

12. STOCK-BASED COMPENSATION:

Restricted Stock Units (RSUs) to be Settled in Common Stock

A summary of the activity for RSUs to be settled in common stock for the three months ended March 31, 2023 and 2022 is as follows (RSUs in thousands):

	2023		2022
	RSUs	Weighted Average Grant Date Fair Value (Per Unit)	RSUs	Weighted Average Grant Date Fair Value (Per Unit)
Unvested at January 1	3,263	$78.74	3,880	$61.64
Granted	626	$158.82	768	$110.24
Vested	(1,120)	$65.50	(1,177)	$48.50
Forfeited	(75)	$107.63	(38)	$63.66
Unvested at March 31	2,694	$102.59	3,433	$77.09

The approximate fair value of RSUs that vested during the three months ended March 31, 2023 and 2022 was $176.1 million and $132.9 million.

During the three months ended March 31, 2023 and 2022, Quanta recognized $22.6 million and $19.5 million of non-cash stock compensation expense related to RSUs to be settled in common stock. As of March 31, 2023, there was $204.0 million of total unrecognized compensation expense related to unvested RSUs to be settled in common stock granted to both employees and non-employees. This cost is expected to be recognized over a weighted average period of 3.54 years.

Performance Stock Units (PSUs) to be Settled in Common Stock

A summary of the activity for PSUs to be settled in common stock for the three months ended March 31, 2023 and 2022 is as follows (PSUs in thousands):

	2023		2022
	PSUs	Weighted Average Grant Date Fair Value (Per Unit)	PSUs	Weighted Average Grant Date Fair Value (Per Unit)
Unvested at January 1	733	$65.39	931	$47.27
Granted	177	$174.50	148	$119.04
Vested	(413)	$35.12	(334)	$40.15
Unvested at March 31	497	$129.38	745	$64.69

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The Monte Carlo simulation valuation methodology applied the following key inputs:

	2023		2022
Valuation date price based on March 9, 2023 and March 2, 2022 closing stock prices of Quanta common stock	$160.55		$110.24
Historical volatility	35	%	39	%
Risk-free interest rate	4.62	%	1.64	%
Term in years	2.81		2.83

During the three months ended March 31, 2023 and 2022, Quanta recognized $4.9 million and $3.5 million of non-cash stock compensation expense related to PSUs to be settled in common stock. As of March 31, 2023, there was an estimated $44.7 million of total unrecognized compensation expense related to unearned and unvested PSUs. This amount is based on forecasted attainment of performance metrics and estimated forfeitures of unearned and unvested PSUs. The compensation expense related to outstanding PSUs can vary from period to period based on changes in forecasted achievement of established performance goals and the total number of shares of common stock that Quanta anticipates will be issued upon vesting of such PSUs. This cost is expected to be recognized over a weighted average period of 2.16 years.

During each of the three months ended March 31, 2023 and 2022, 0.7 million shares of common stock were earned and either issued or deferred for future issuance under Quanta’s deferred compensation plans in connection with PSUs. The approximate fair values of PSUs earned during the three months ended March 31, 2023 and 2022 were $115.5 million and $72.4 million.

RSUs to be Settled in Cash

During the three months ended March 31, 2023 and 2022, compensation expense related to RSUs to be settled in cash was $4.9 million and $3.7 million. RSUs that are anticipated to be settled in cash are not included in the calculation of weighted average shares outstanding for earnings per share, and the estimated earned value of such RSUs is calculated at the end of each reporting period based on the market value of Quanta’s common stock and is classified as a liability. Quanta paid $9.7 million and $8.6 million to settle liabilities related to cash-settled RSUs in the three months ended March 31, 2023 and 2022. Accrued liabilities for the estimated earned value of outstanding RSUs to be settled in cash were $6.9 million and $11.0 million as of March 31, 2023 and December 31, 2022.

13. EMPLOYEE BENEFIT PLANS:

Deferred Compensation Plans

Quanta maintains non-qualified deferred compensation plans under which eligible directors and key employees may defer their receipt of certain cash compensation and/or the settlement of certain stock-based awards. As of March 31, 2023 and December 31, 2022, the deferred compensation liability under Quanta’s deferred compensation plans, including amounts contributed by Quanta, was $76.5 million and $67.4 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 assets are recorded at their cash surrender value, which is considered their fair market value, and as of March 31, 2023 and December 31, 2022, the fair market values were $72.4 million and $64.0 million and were included in “Other assets, net” in the accompanying condensed consolidated balance sheets. The level of inputs for these fair value measurements is Level 2.

Changes in the fair market value of Quanta’s COLI assets and deferred compensation liabilities largely offset and are recorded in the accompanying statements of operations as follows (in thousands):

		Three Months Ended
		March 31,
Classification	Change in fair market value of	2023		2022
(Loss) gain included in Selling, general and administrative expenses	Deferred compensation liabilities	$	(4,076)	$	3,927
Other income (expense), net	COLI assets	$	3,146	$	(4,140)

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14. COMMITMENTS AND CONTINGENCIES:

Legal Proceedings

Quanta is from time to time party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, property damage, breach of contract, negligence or gross negligence, environmental liabilities, wage and hour and other employment-related damages, punitive damages, consequential damages, civil penalties or other losses, or injunctive or declaratory relief. With respect to all such lawsuits, claims and proceedings, Quanta records a reserve when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In addition, Quanta discloses matters for which management believes a material loss is at least reasonably possible.

The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. In all instances, management has assessed the matter based on current information and made a judgment concerning its potential outcome, giving due consideration to the nature of the claim, the amount and nature of damages sought and the probability of success and taking into account, among other things, negotiations with claimants, discovery, settlements and payments, judicial rulings, arbitration and mediation decisions, advice of internal and external legal counsel, and other information and events pertaining to a particular matter. Costs incurred for litigation are expensed as incurred. Except as otherwise stated below, none of these proceedings are expected to have a material adverse effect on Quanta’s consolidated financial position, results of operations or cash flows. However, management’s judgment may prove materially inaccurate, and such judgment is made subject to the known uncertainties of litigation.

Peru Project Dispute

In 2015, Redes Andinas de Comunicaciones S.R.L. (Redes), a majority-owned subsidiary of Quanta, entered into two separate contracts with an agency of the Peruvian Ministry of Transportation and Communications (MTC), currently Programa Nacional de Telecomunicaciones (PRONATEL), as successor to Fondo de Inversion en Telecomunicaciones (FITEL), pursuant to which Redes would design, construct and operate certain telecommunication networks in rural regions of Peru. The aggregate consideration provided for in the contracts was approximately $248 million, consisting of approximately $151 million to be paid during the construction period and approximately $97 million to be paid during a 10-year post-construction operation and maintenance period. At the beginning of the project, FITEL made advance payments totaling approximately $87 million to Redes, which were secured by two on-demand advance payment bonds posted by Redes to guarantee proper use of the payments in the execution of the project. Redes also provided two on-demand performance bonds in the aggregate amount of $25 million to secure performance of its obligations under the contracts.

During the construction phase, the project experienced numerous challenges and delays, primarily related to issues which Quanta believes were outside of the control of and not attributable to Redes, including, among others, weather-related issues, local opposition to the project, permitting delays, the inability to acquire clear title to certain required parcels of land and other delays which Quanta believes were attributable to FITEL/PRONATEL. In response to various of these challenges and delays, Redes requested and received multiple extensions to certain contractual deadlines and relief from related liquidated damages. However, in April 2019, PRONATEL provided notice to Redes claiming that Redes was in default under the contracts due to the delays and that PRONATEL would terminate the contracts if the alleged defaults were not cured. Redes responded by claiming that it was not in default, as the delays were due to events not attributable to Redes, and therefore PRONATEL was not entitled to terminate the contracts. PRONATEL subsequently terminated the contracts for alleged cause prior to completion of Redes’ scope of work, exercised the on-demand performance bonds and advance payment bonds against Redes, and indicated its intention to claim damages, including liquidated damages under the contracts. As of the date of the contract terminations, Redes had incurred costs of approximately $157 million related to the design and construction of the project and had received approximately $100 million of payments (inclusive of the approximately $87 million advance payments).

In May 2019, Redes filed for arbitration before the Court of International Arbitration of the International Chamber of Commerce (ICC) against PRONATEL and the MTC. In the arbitration, Redes claimed that PRONATEL: breached and wrongfully terminated the contracts; wrongfully executed the advance payment bonds and the performance bonds; and was not entitled to the alleged amount of liquidated damages, and sought compensation for various damages arising from PRONATEL’s actions in the initially claimed amount of approximately $190 million. In August 2022, Redes received the decision of the arbitration tribunal, which unanimously found in favor of Redes in connection with its claims and ordered, among other things, (i) repayment of the amounts collected by PRONATEL under the advance payment bonds and the performance bonds; (ii) payment of amounts owed for work completed by Redes under the contracts; (iii) payment of lost income in connection with Redes’ future operation and maintenance of the networks; and (iv) payment of other related costs

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and damages to Redes as a result of the breach and improper termination of the contracts (including costs related to the execution of the bonds, costs related to the transfer of the networks and legal and expert fees). Accordingly, the arbitration tribunal awarded Redes approximately $177 million. In addition, per the terms of the arbitration decision, interest will accrue on the amount owed up to the date of payment. The decision of the arbitration tribunal is final, with limited grounds on which PRONATEL and the MTC may seek to annul the decision in Peruvian courts. In December 2022, Redes filed an enforcement proceeding with respect to each project contract to secure recovery of the arbitration award, and PRONATEL and the MTC filed an annulment proceeding with respect to each project contract. The enforcement and annulment proceedings are all pending within different commercial courts in Lima, Peru. In April 2023, Redes received a favorable ruling in one annulment proceeding rejecting the grounds for annulment, and decisions with respect to the other annulment proceeding and the enforcement proceedings are expected later in 2023.

Additionally, in December 2022, following the favorable arbitration ruling, Quanta received $100.5 million pursuant to coverage under an insurance policy for the improper collection by PRONATEL and the MTC of the advance payment and performance bonds, and in January 2023 Quanta received $6.8 million pursuant to coverage under an insurance policy for nonpayment by PRONATEL and the MTC of amounts owed for work completed by Redes. Quanta is continuing to pursue collection of the ICC arbitration award and any amount collected would result in repayment of an equal amount to the insurers up to the amount received from the insurers. As a result, $107.2 million is included in “Insurance and other non-current liabilities” in the accompanying consolidated balance sheet as of March 31, 2023.

Quanta also reserves the right to seek full compensation for the loss of its investment under applicable legal regimes, including investment treaties and customary international law, as well as to seek resolution through direct discussions with PRONATEL or the MTC. In connection with these rights, in May 2020 Quanta’s Dutch subsidiary delivered to the Peruvian government an official notice of dispute arising from the termination of the contracts and related acts by PRONATEL (which are attributable to Peru) under the Agreement on the Encouragement and Reciprocal Protection of Investments between the Kingdom of the Netherlands and the Republic of Peru (Investment Treaty). The Investment Treaty protects Quanta’s subsidiary’s indirect ownership stake in Redes and the project, and provides for rights and remedies distinct from the ICC arbitration. In December 2020, Quanta’s Dutch subsidiary filed a request for the institution of an arbitration proceeding against Peru with the International Centre for Settlement of Investment Disputes (ICSID) related to Peru’s breach of the Investment Treaty, which was registered by ICSID in January 2021. In the ICSID arbitration, Quanta’s Dutch subsidiary claims, without limitation, that Peru: (i) treated the subsidiary’s investment in Redes and the project unfairly and inequitably; and (ii) effectively expropriated the subsidiary’s investment in Redes and the project. In addition, Quanta’s Dutch subsidiary is seeking full compensation for all damages arising from Peru’s actions, including but not limited to (i) the fair market value of the investment and/or lost profits; (ii) attorneys’ fees and arbitration costs; (iii) other related costs and damages and (iv) pre- and post-award interest. The ICSID arbitration hearing is currently scheduled to occur in June 2023.

Quanta believes Redes is entitled to all amounts awarded by the ICC arbitration tribunal, and that its Dutch subsidiary is entitled to other amounts associated with the pending ICSID arbitration proceeding. Quanta and Redes intend to vigorously pursue recovery of the amounts awarded by the ICC arbitration tribunal and take additional legal actions deemed necessary to enforce the ICC arbitration decision. However, due to the inherent uncertainty involved with, among other things, the annulment and enforcement proceedings, the ultimate timing and conclusion with respect to collection of the amount of the ICC arbitration award remains unknown.

As a result of the contract terminations and the inherent uncertainty involved in arbitration proceedings and recovery of amounts owed, during the three months ended June 30, 2019, Quanta recorded a charge to earnings of $79.2 million, which included a reduction of previously recognized earnings on the project, a reserve against a portion of the project costs incurred through the project termination date, an accrual for a portion of the alleged liquidated damages, and the estimated costs to complete the project turnover and close out the project. Quanta also initially recorded a contract receivable of approximately $120 million related to the project during the three months ended June 30, 2019, which includes the amounts collected by PRONATEL through exercise of the advance payment bonds and performance bonds, and that receivable was not changed as of March 31, 2023 and is included in “Other assets, net” in the accompanying condensed consolidated balance sheet. After considering, as discussed above, that the ultimate timing and conclusion with respect to collection of the ICC arbitration award remains unknown, Quanta has not recognized a gain in the current period. To the extent amounts in excess of the current receivable are determined to be realizable, a gain would be recorded in the period such determination is made. However, if Quanta is ultimately not successful with respect to collection of the ICC arbitration award, through annulment or otherwise, or with respect to its claims in the pending ICSID arbitration proceeding, this matter could result in an additional significant loss that could have a material adverse effect on Quanta’s consolidated results of operations and cash flows.

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Lorenzo Benton v. Telecom Network Specialists, Inc., et al.

In June 2006, plaintiff Lorenzo Benton filed a class action complaint in the Superior Court of California, County of Los Angeles, alleging various wage and hour violations against Telecom Network Specialists (TNS), a former subsidiary of Quanta. Quanta retained liability associated with this matter pursuant to the terms of Quanta’s sale of TNS in December 2012. Benton represents a class of workers that includes all persons who worked on certain TNS projects, including individuals that TNS retained through numerous staffing agencies. The plaintiff class in this matter is seeking damages for unpaid wages, penalties associated with the failure to provide meal and rest periods and overtime wages, interest and attorneys’ fees. In January 2017, the trial court granted a summary judgment motion filed by the plaintiff class and found that TNS was a joint employer of the class members and that it failed to provide adequate meal and rest breaks and failed to pay overtime wages. During 2019 and 2020, the parties filed additional summary judgment and other motions, and a bench trial on liability and damages was held. Liability and damages have been determined by the trial court, with the amount of liability for TNS, including interest through the date of the trial court’s orders, determined to be approximately $9.5 million. Separately, in 2022, the court issued a final ruling awarding attorneys’ fees and costs to plaintiffs in the amount of approximately $17.3 million. Quanta continues to contest its liability and the damages calculations asserted by the plaintiff class in this matter and believes the court’s decisions on these matters are not supported by controlling law and that attorneys’ fees would only be recoverable by the plaintiff class in the event Quanta’s appeal of the trial court’s rulings on liability and damages is unsuccessful.

Additionally, in November 2007, TNS filed cross complaints for indemnity and breach of contract against the staffing agencies, which employed many of the individuals in question. In December 2012, the trial court heard cross-motions for summary judgment filed by TNS and the staffing agencies pertaining to TNS’s demand for indemnity. The court denied TNS’s motion and granted the motions filed by the staffing agencies; however, the California Appellate Court reversed the trial court’s decision in part and instructed the trial court to reconsider its ruling. In February 2017, the court denied a new motion for summary judgment filed by the staffing companies and has since stated that the staffing companies would be liable to TNS for any damages owed to the class members that the staffing companies employed. However, Quanta currently believes that, due to solvency issues, any contribution from the staffing companies may not be substantial.

The final amount of liability and attorneys’ fees, if any, payable in connection with this matter remains the subject of pending litigation and will ultimately depend on various factors, including the outcome of the parties’ appeals of the trial court’s rulings on liability, damages, and attorneys’ fees and costs, and the solvency of the staffing agencies. Based on review and analysis of the trial court’s rulings on liability, Quanta does not believe, at this time, that it is probable this matter will result in a material loss. However, if Quanta is unsuccessful in this litigation and the staffing agencies are unable to fund damages owed to class members, based on rulings issued by the trial court, Quanta believes the range of reasonably possible loss to Quanta upon final resolution of this matter could be up to approximately $26.8 million, plus any additional attorneys’ fees, interest, and expenses awarded to the plaintiff class.

Hallen Acquisition Assumed Liability

In August 2019, in connection with the acquisition of The Hallen Construction Co., Inc. (Hallen), Quanta assumed certain contingent liabilities associated with a March 2014 natural gas-fed explosion and fire in the Manhattan borough of New York City, New York. The incident resulted in, among other things, loss of life, personal injury and the destruction of two buildings and other property damage. After investigation, the National Transportation Safety Board determined that the probable cause of the incident was the failure of certain natural gas infrastructure installed by Consolidated Edison, Inc. (Con Ed) and the failure of certain sewer infrastructure maintained by the City of New York. Pursuant to a contract with Con Ed, Hallen had performed certain work related to such natural gas infrastructure and agreed to indemnify Con Ed for certain claims, liabilities and costs associated with its work. Numerous lawsuits are pending in New York state courts related to the incident, which generally name Con Ed, the City of New York and Hallen as defendants. These lawsuits are at various stages and generally seek unspecified damages and, in some cases, punitive damages, for wrongful death, personal injury, property damage and business interruption.

Hallen’s liabilities associated with this matter are expected to be covered under applicable insurance policies or contractual remedies negotiated by Quanta with the former owners of Hallen. When a loss becomes probable and estimable, Quanta expects to record an accrual of the estimated liability, offset by a receivable in the same amount related to such insurance coverage and contractual remedies. As of March 31, 2023, Quanta had not recorded an accrual related to this matter, as the ultimate amount of liability in connection with this matter remains subject to uncertainties associated with pending litigation, including, among other things, the likelihood and potential amount of damages that could be asserted or awarded. While Quanta believes the liabilities associated with this matter will not exceed the amount of available insurance coverage and

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contractual remedies, this matter could result in a loss that is in excess of, or not covered by, such remedies, which could have a material adverse effect on Quanta’s consolidated financial condition, results of operations and cash flows.

Silverado Wildfire Matter

During 2022 and 2023, two of Quanta’s subsidiaries received tenders of defense and demands for preservation of evidence from Southern California Edison Company (SCE) related to lawsuits filed from April 2021 through January 2023 against SCE and T-Mobile USA, Inc. (T-Mobile) in the Superior Court of California, County of Orange. The lawsuits generally assert property damage and related claims on behalf of certain individuals and subrogation claims on behalf of insurers relating to damages caused by a wildfire that began in October 2020 in Orange County, California (the Silverado Fire) and that is purported to have damaged approximately 13,000 acres. The lawsuits allege the Silverado Fire originated from utility poles in the area, generally claiming that each defendant failed to adequately maintain, inspect, repair or replace its overhead facilities, equipment and utility poles and remove vegetation in the vicinity; that the utility poles were overloaded with equipment from shared usage; and that SCE failed to de-energize its facilities during red flag warnings for a Santa Ana wind event. The lawsuits allege the Silverado Fire started when SCE and T-Mobile equipment contacted each other and note the Orange County Fire Department is investigating whether a T-Mobile lashing wire contacted an SCE overhead primary conductor in high winds. T-Mobile has filed cross-complaints against SCE alleging, among other things, that the ignition site of the Silverado Fire encompassed two utility poles replaced by SCE or a third party engaged by SCE, and that certain equipment, including T-Mobile’s lashing wire, was not sufficiently re-secured after the utility pole replacements. One of Quanta’s subsidiaries performed planning and other services related to the two utility poles, and another Quanta subsidiary replaced the utility poles and reattached the electrical and telecommunication equipment to the new utility poles in March 2019, approximately 19 months before the Silverado Fire. Pursuant to the general terms of a master services agreement and a master consulting services agreement between the Quanta subsidiaries and SCE, the subsidiaries agreed to defend and indemnify SCE against certain claims arising with respect to performance or nonperformance under the agreements. The SCE tender letters seek contractual indemnification and defense from Quanta’s subsidiaries for the claims asserted against SCE in the lawsuits and the T-Mobile cross-complaints.

Quanta’s subsidiaries intend to vigorously defend against the lawsuits, the T-Mobile cross-complaints and any other claims asserted in connection with the Silverado Fire. Quanta will continue to review additional information in connection with this matter as litigation and resolution efforts progress, and any such information may potentially allow Quanta to determine an estimate of potential loss, if any. As of March 31, 2023, Quanta had not recorded an accrual with respect to this matter, and Quanta is currently unable to reasonably estimate a range of reasonably possible loss, if any, because there are a number of unknown facts and legal considerations that may impact the amount of any potential liability. Quanta also believes that to the extent its subsidiaries are determined to be liable for any damages resulting from this matter, its insurance would be applied to any such liabilities over its deductible amount and its insurance coverage would be adequate to cover such potential liabilities. However, the ultimate amount of any potential liability and insurance coverage in connection with this matter remains subject to uncertainties associated with pending and potential future litigation.

Insurance

Quanta is insured for, among other things, employer’s liability, workers’ compensation, auto liability, aviation and general liability claims. Quanta manages and maintains a portion of its casualty risk indirectly through its wholly-owned captive insurance company, which insures all claims up to the amount of the applicable deductible of its third-party insurance programs, as well as with respect to certain other amounts.

As of March 31, 2023 and December 31, 2022, the gross amount accrued for employer’s liability, workers’ compensation, auto liability, general liability, and group health claims totaled $322.2 million and $319.6 million, of which $210.0 million and $209.8 million are included in “Insurance and other non-current liabilities,” and the remainder is included in “Accounts payables and accrued expenses.” Related insurance recoveries/receivables as of March 31, 2023 and December 31, 2022 were $5.4 million and $5.8 million, of which $0.3 million and $0.3 million are included in “Prepaid expenses and other current assets” and $5.1 million and $5.5 million are included in “Other assets, net.”

Bonds and Parent Guarantees

As of March 31, 2023, the total amount of the outstanding performance bonds was estimated to be approximately $5.7 billion. Quanta’s estimated maximum exposure related to the value of the performance bonds outstanding is lowered on each bonded project as the cost to complete is reduced, and each commitment under a performance bond generally extinguishes concurrently with the expiration of its related contractual obligation. The estimated cost to complete these bonded projects was approximately $2.1 billion as of March 31, 2023.

29

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Capital Commitments and Other Committed Expenditures

As of March 31, 2023, Quanta had $178.1 million of production orders with expected delivery dates during the remainder of 2023 for capital commitments primarily related to the expansion of its equipment fleet. The majority of this amount relates to the expansion of Quanta’s equipment fleet in order to accommodate manufacturer lead times on certain types of vehicles. Although Quanta has committed to purchase these vehicles at the time of their delivery, Quanta anticipates that the majority of these orders will be assigned to third party leasing companies and made available under certain master equipment lease agreements, thereby releasing Quanta from its capital commitments.

15. DETAIL OF CERTAIN ACCOUNTS:

Cash and Cash Equivalents

As of March 31, 2023 and December 31, 2022, cash equivalents were $49.6 million and $260.1 million and consisted primarily of money market investments and money market mutual funds. Quanta’s cash equivalents are categorized as Level 1 assets, as all values are based on unadjusted quoted prices for identical assets in an active market. Cash and cash equivalents in foreign bank accounts are primarily held in Canada and Australia.

Cash and cash equivalents held by joint ventures, which are either consolidated or proportionately consolidated, are available to support joint venture operations, but Quanta cannot utilize those assets to support its other operations. Quanta generally has no right to cash and cash equivalents held by a joint venture other than participating in distributions, to the extent made, and in the event of dissolution. Cash and cash equivalents held by Quanta’s wholly-owned captive insurance company are generally not available for use in support of its other operations. Amounts related to cash and cash equivalents held by consolidated or proportionately consolidated joint ventures and the captive insurance company, which are included in Quanta’s total cash and cash equivalents balances, were as follows (in thousands):

	March 31, 2023		December 31, 2022
Cash and cash equivalents held by domestic joint ventures	$	17,703	$	14,291
Cash and cash equivalents held by foreign joint ventures	10,010		6,277
Total cash and cash equivalents held by joint ventures	27,713		20,568
Cash and cash equivalents held by captive insurance company	34,285		35,085
Cash and cash equivalents not held by joint ventures or captive insurance company	155,117		372,852
Total cash and cash equivalents	$	217,115	$	428,505

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
Accounts payable, trade	$	1,359,912	$	1,302,086
Accrued compensation and related expenses	382,891		469,048
Other accrued expenses	425,371		381,995
Accounts payable and accrued expenses	$	2,168,174	$	2,153,129

Other accrued expenses primarily include accrued insurance liabilities, income and franchise taxes payable and deferred revenues.

Property and Equipment

Accumulated depreciation related to property and equipment was $1.70 billion and $1.65 billion as of March 31, 2023 and December 31, 2022.

Other Intangible Assets

Accumulated amortization related to other intangible assets was $1.10 billion and $1.02 billion as of March 31, 2023 and December 31, 2022.

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QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

16. SUPPLEMENTAL CASH FLOW INFORMATION:

The net effects of changes in assets and liabilities, net of non-cash transactions, on cash flows from operating activities are as follows (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Accounts and notes receivable	$	27,874	$	25,182
Contract assets	(206,812)		(165,549)
Inventories	1,061		(9,488)
Prepaid expenses and other current assets	(29,227)		21,094
Accounts payable and accrued expenses and other non-current liabilities	(33,618)		(57,903)
Contract liabilities	320		(2,797)
Other, net	(6,926)		632
Net change in assets and liabilities, net of non-cash transactions	$	(247,328)	$	(188,829)

Reconciliations of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of such amounts shown in the statements of cash flows are as follows (in thousands):

	March 31,
	2023		2022
Cash and cash equivalents	$	217,115	$	238,258
Restricted cash included in “Prepaid expenses and other current assets” (1)	6,059		1,628
Restricted cash included in “Other assets, net” (1)	950		950
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows	$	224,124	$	240,836

	December 31,
	2022		2021
Cash and cash equivalents	$	428,505	$	229,097
Restricted cash included in “Prepaid expenses and other current assets” (1)	3,759		1,836
Restricted cash included in “Other assets, net” (1)	950		954
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows	$	433,214	$	231,887

(1)    Restricted cash includes any cash that is legally restricted as to withdrawal or usage.

Supplemental cash flow information related to leases is as follows (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$	(23,627)	$	(25,057)
Operating cash flows used by finance leases	$	(28)	$	(27)
Financing cash flows used by finance leases	$	(422)	$	(365)
Lease assets obtained in exchange for lease liabilities:
Operating leases	$	30,876	$	9,106
Finance leases	$	13,277	$	1,134
Lease financing transaction assets obtained in exchange for lease financing transaction liabilities	$	2,237	$	23,233

31

QUANTA SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Additional supplemental cash flow information is as follows (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Cash (paid) received during the period for —
Interest paid	$	(17,606)	$	(7,470)
Income taxes paid	$	(17,386)	$	(4,832)
Income tax refunds	$	1,266	$	2,957

Accrued capital expenditures were $20.5 million and $21.4 million as of March 31, 2023 and 2022. The impact of these items has been excluded from Quanta’s capital expenditures in the accompanying condensed consolidated statements of cash flows due to their non-cash nature.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General

The following discussion and analysis of the financial condition and results of operations of Quanta Services, Inc. (together with its subsidiaries, Quanta, we, us or our) should be read in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report and with our 2022 Annual Report, which was filed with the SEC on February 23, 2023 and is available on the SEC’s website at www.sec.gov and on our website at www.quantaservices.com. The discussion below contains forward-looking statements that are based upon our current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to inaccurate assumptions and known or unknown risks and uncertainties, including those identified in Cautionary Statement About Forward-Looking Statements and Information above, in Item 1A. Risk Factors of Part II of this Quarterly Report and in Item 1A. Risk Factors of Part I of our 2022 Annual Report.

Overview

Our first quarter 2023 results reflect increased demand for our services, as revenue increased in all of our segments as compared to the first quarter of 2022.

With respect to our Electric Power segment, utilities are continuing to invest significant capital in their electric power delivery systems through multi-year grid modernization and reliability programs, as well as system upgrades and hardening programs in response to recurring severe weather events. We have also experienced high demand for new and expanded transmission, substation and distribution infrastructure needed to reliably transport power.

With respect to our Renewable Energy segment, the transition to a reduced-carbon economy is continuing to drive demand for renewable generation and related infrastructure (e.g., high-voltage electric transmission and substation infrastructure), as well as interconnection services necessary to connect and transmit renewable-generated electricity to existing electric power delivery systems. Our acquisition of Blattner Holding Company and its operating subsidiaries (collectively, Blattner) in the fourth quarter of 2021, has had a significant incremental impact on our ability to perform these services. Despite these positive longer-term trends, certain of our customers experienced supply chain challenges during 2022 that resulted in delays and shortages of, and increased costs for, materials necessary for certain projects, particularly sourcing restrictions related to solar panels necessary for the utility scale solar industry. Based on indications within this market during the first quarter of 2023, we expect the supply chain challenges and sourcing restrictions related to solar panels to improve throughout the remainder of the year.

With respect to our Underground and Infrastructure segment, in 2022 and the first quarter of 2023 we experienced strong demand for our services focused on utility spending, in particular our gas distribution services to natural gas utilities that are implementing modernization programs, and our downstream industrial services, as these customers continued to move forward with certain maintenance and capital spending that was deferred during the course of the COVID-19 pandemic. Additionally, revenues associated with large pipeline projects in Canada remained at a higher level in the first quarter of 2023.

During the first quarter of 2023, increased revenues and working capital requirements from our projects resulted in $38 million of net cash provided by operating activities. Additionally, in January 2023, we acquired three businesses for a total consideration of $587 million, consisting of both cash and our common stock. Available commitments under our senior credit facility and cash and cash equivalents as of March 31, 2023 were $1.79 billion.

We expect the strong demand for our services will continue. Our remaining performance obligations and backlog were $10.26 billion and $25.27 billion as of March 31, 2023, representing increases of 16.5%, and 4.9% relative to December 31, 2022. For a reconciliation of backlog to remaining performance obligations, the most comparable financial measure prepared in conformity with generally accepted accounting principles in the United States (GAAP), see Non-GAAP Financial Measures below.

Significant Factors Impacting Results

Our revenues, profit, margins and other results of operations can be influenced by a variety of factors in any given period, including those described in Item 1. Business and Item 1A. Risk Factors of Part I of our 2022 Annual Report, and those factors have caused fluctuations in our results in the past and are expected to cause fluctuations in our results in the future. Additional information with respect to certain of those factors is provided below.

Seasonality. Typically, our revenues are lowest in the first quarter of the year because cold, snowy or wet conditions can create challenging working environments that are more costly for our customers or cause delays on projects. In addition, infrastructure projects often do not begin in a meaningful way until our customers finalize their capital budgets, which typically

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occurs during the first quarter. Second quarter revenues are typically higher than those in the first quarter, as some projects begin, but continued cold and wet weather can often impact productivity. Third quarter revenues are typically the highest of the year, as a greater number of projects are underway and operating conditions, including weather, are normally more accommodating. Generally, revenues during the fourth quarter are lower than the third quarter but higher than the second quarter, as many projects are completed and customers often seek to spend their capital budgets before year end. However, the holiday season and inclement weather can sometimes cause delays during the fourth quarter, reducing revenues and increasing costs. These seasonal impacts are typical for our U.S. operations, but seasonality for our international operations may differ. For example, revenues for certain projects in Canada are typically higher in the first quarter because projects are often accelerated in order to complete work while the ground is frozen and prior to the break up, or seasonal thaw, as productivity is adversely affected by wet ground conditions during warmer months.

Weather, natural disasters and emergencies. The results of our business in a given period can be impacted by adverse weather conditions, severe weather events, natural disasters or other emergencies, which include, among other things, heavy or prolonged snowfall or rainfall, hurricanes, tropical storms, tornadoes, floods, blizzards, extreme temperatures, wildfires, post-wildfire floods and debris flows, pandemics and earthquakes. Climate change has the potential to increase the frequency and extremity of severe weather events. These conditions and events can negatively impact our financial results due to, among other things, the termination, deferral or delay of projects, reduced productivity and exposure to significant liabilities due to failure of electrical power or other infrastructure on which we have performed services. However, severe weather events can also increase our emergency restoration services, which typically yield higher margins due in part to higher equipment utilization and absorption of fixed costs.

Demand for services. We perform the majority of our services under existing contracts, including MSAs and similar agreements pursuant to which our customers are not committed to specific volumes of our services. Therefore our volume of business can be positively or negatively affected by fluctuations in the amount of work our customers assign us in a given period, which may vary by geographic region. Examples of items that may cause demand for our services to fluctuate materially from quarter to quarter include: the financial condition of our customers, their capital spending and their access to capital; acceleration of any projects or programs by customers (e.g., modernization or hardening programs); economic and political conditions on a regional, national or global scale, including availability of renewable energy tax credits; interest rates; governmental regulations affecting the sourcing and costs of materials and equipment; other changes in U.S. and global trade relationships; and project deferrals and cancellations.

Revenue mix and impact on margins. The mix of revenues based on the types of services we provide in a given period will impact margins, as certain industries and services provide higher-margin opportunities. Our larger or more complex projects typically include, among others, transmission projects with higher voltage capacities; pipeline projects with larger-diameter throughput capacities; large-scale renewable generation projects; and projects with increased engineering, design or construction complexities, more difficult terrain or geographical requirements, or longer distance requirements. These projects typically yield opportunities for higher margins than our recurring services under MSAs described above, as we assume a greater degree of performance risk and there is greater utilization of our resources for longer construction timeframes. However, larger projects are subject to additional risk of regulatory delay and cyclicality. Project schedules also fluctuate, particularly in connection with larger, more complex or longer-term projects, which can affect the amount of work performed in a given period. Furthermore, smaller or less complex projects typically have a greater number of companies competing for them, and competitors at times may more aggressively pursue available work. A greater percentage of smaller scale or less complex work also could negatively impact margins due to the inefficiency of transitioning between a greater number of smaller projects versus continuous production on fewer larger projects. As a result, at times we may choose to maintain a portion of our workforce and equipment in an underutilized capacity to ensure we are strategically positioned to deliver on larger projects when they move forward.

Project variability and performance. Margins for a single project may fluctuate period to period due to changes in the volume or type of work performed, the pricing structure under the project contract or job productivity. Additionally, our productivity and performance on a project can vary period to period based on a number of factors, including unexpected project difficulties or site conditions (including in connection with difficult geographic characteristics); project location, including locations with challenging operating conditions; whether the work is on an open or encumbered right of way; inclement weather or severe weather events; environmental restrictions or regulatory delays; protests, other political activity or legal challenges related to a project; the performance of third parties; and the impact of the COVID-19 pandemic. Moreover, we currently generate a significant portion of our revenues under fixed price contracts, and fixed price contracts are more common in connection with our larger and more complex projects that typically involve greater performance risk. Under these contracts, we assume risks related to project estimates and execution, and project revenues can vary, sometimes substantially, from our original projections due to a variety of factors, including the additional complexity, timing uncertainty or extended bidding, regulatory and permitting processes associated with these projects. These variations can result in a reduction in expected profit, the incurrence of losses on a project or the issuance of change orders and/or assertion of contract claims against customers. See

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Revenue Recognition - Contract Estimates and Changes in Estimates in Note 3 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Subcontract work and provision of materials. Work that is subcontracted to other service providers generally yields lower margins, and therefore an increase in subcontract work in a given period can decrease operating margins. In recent years, we have subcontracted approximately 20% of our work to other service providers. Our customers are usually responsible for supplying the materials for their projects. However, under some contracts we agree to procure all or part of the required materials. Margins may be lower on projects where we furnish a significant amount of materials, as our markup on materials is generally lower than our markup on labor costs, and in a given period an increase in the percentage of work with greater materials procurement requirements may decrease our overall margins, including in some cases our assuming price risk. Furthermore, fluctuations in the price or availability of materials, equipment and consumables that we or our customers utilize could impact costs to complete projects.

Results of Operations

Consolidated Results

The following table sets forth selected statements of operations data, such data as a percentage of revenues for the periods indicated, as well as the dollar and percentage change from the prior period (dollars in thousands). The results of acquired businesses have been included in the following results of operations since their respective acquisition dates.

	Three Months Ended March 31,								Change
	2023				2022				$		%
Revenues	$	4,428,826	100.0	%	$	3,965,525	100.0	%	$	463,301	11.7	%
Cost of services	3,855,631		87.1		3,417,354		86.2		438,277		12.8	%
Gross profit	573,195		12.9		548,171		13.8		25,024		4.6	%
Equity in earnings of integral unconsolidated affiliates	9,620		0.2		15,152		0.4		(5,532)		(36.5)	%
Selling, general and administrative expenses	(384,552)		(8.7)		(324,887)		(8.2)		(59,665)		18.4	%
Amortization of intangible assets	(72,403)		(1.6)		(115,751)		(2.9)		43,348		(37.4)	%
Change in fair value of contingent consideration liabilities	—		—		(5,169)		(0.1)		5,169		(100.0)	%
Operating income	125,860		2.8		117,516		3.0		8,344		7.1	%
Interest and other financing expenses	(41,693)		(0.9)		(24,728)		(0.6)		(16,965)		68.6	%
Interest income	1,516		—		69		—		1,447		2,097.1	%
Other income (expense), net	7,866		0.2		(1,273)		(0.1)		9,139		*
Income before income taxes	93,549		2.1		91,584		2.3		1,965		2.1	%
(Benefit from) provision for income taxes	(3,421)		(0.1)		6,556		0.2		(9,977)		*
Net income	96,970		2.2		85,028		2.1		11,942		14.0	%
Less: Net income attributable to non-controlling interests	1,924		(0.1)		387		—		1,537		397.2	%
Net income attributable to common stock	$	95,046	2.1	%	$	84,641	2.1	%	$	10,405	12.3	%

* The percentage change is not meaningful.

Revenues. Revenues increased due to a $197.3 million increase in revenues from our Electric Power segment, a $133.3 million increase in revenues from our Underground and Infrastructure segment and a $132.7 million increase in revenues from our Renewable Energy segment. See Segment Results below for additional information and discussion related to segment revenues.

Cost of services. Costs of services primarily includes wages, benefits, subcontractor costs, materials, equipment, and other direct and indirect costs, including related depreciation. The increase in cost of services generally correlates to the increase in revenues.

Equity in earnings of integral unconsolidated affiliates. The decrease was primarily related to a decrease in equity in earnings from one of our integral unconsolidated affiliates as a result of lower emergency restoration services.

Selling, general and administrative expenses. The increase was partially attributable to an aggregate $27.1 million increase in the following items to support business growth: compensation expense, primarily associated with increased salaries;

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travel and related expenses; and training expenses. Also contributing to the increase was an $11.1 million increase in expenses associated with acquired businesses and a $7.9 million increase in expense related to deferred compensation liabilities. The fair market value changes in deferred compensation liabilities were largely offset by changes in the fair value of corporate-owned life insurance (COLI) assets associated with the deferred compensation plan, which are included in “Other (expense) income, net” as discussed below.

Amortization of intangible assets. The decrease was primarily related to a $48.1 million reduction of amortization of intangible assets associated with backlog for Blattner, which was fully amortized by the third quarter of 2022, partially offset by $9.1 million of incremental amortization expense related to recent acquisitions.

Change in fair value of contingent consideration liabilities. Contingent consideration liabilities are payable in the event prescribed performance objectives are achieved by certain acquired businesses during designated post-acquisition periods. Future changes in fair value are expected to be recorded periodically until the contingent consideration liabilities are settled. For additional information regarding these liabilities, see Note 5 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Operating income. Operating income was positively impacted by a $17.5 million decrease in corporate and non-allocated costs, which includes amortization expense, as well as an $11.7 million increase in operating income for our Electric Power segment and a $13.4 million increase in operating income for our Underground and Infrastructure segment. Partially offsetting these increases was a $34.3 million decrease in operating income for our Renewable Energy segment. Results for each of our business segments and corporate and non-allocated costs are discussed in the Segment Results section below.

Interest and other financing expenses. The increase primarily resulted from the impact of higher interest rates on our outstanding variable rate debt during the three months ended March 31, 2023 as compared to the three months ended March 31, 2022.

Other income (expense), net. The net other income included a $3.1 million mark-to-market gain in the three months ended March 31, 2023 associated with our deferred compensation plan, as compared to a $4.1 million mark-to-market loss in the three months ended March 31, 2022. Additionally, net other expense for the three months ended March 31, 2022 included an unrealized loss of $8.4 million that resulted from the remeasurement of the fair value of our investment in Starry Group Holdings, Inc. (Starry), as well as a $6.7 million gain from our sale of a non-controlling interest in a technology company.

(Benefit from) provision for income taxes. The effective tax rates for the three months ended March 31, 2023 and 2022 were a benefit of 3.7% and a provision of 7.2%. The effective tax rate for the three months ended March 31, 2023 was impacted by the recognition of a $32.0 million tax benefit resulting from non-cash stock-based compensation awards vesting at higher fair market value than their grant date fair value, as compared to the recognition of a $20.3 million tax benefit for the three months ended March 31, 2022.

Comprehensive income. See Statements of Comprehensive Income in Item 1. Financial Statements of Part I of this Quarterly Report. Comprehensive income decreased by $0.2 million in the three months ended March 31, 2023 as compared to the three months ended March 31, 2022, primarily due to a $13.2 million decrease in foreign currency translation gains, which was partially offset by an $11.9 million increase in net income. The predominant functional currencies for our operations outside the U.S. are Canadian and Australian dollars. The decrease in foreign currency translation gains primarily resulted from strengthening of both the Canadian and Australian dollars against the U.S. dollar for the three months ended March 31, 2022.

EBITDA and adjusted EBITDA. EBITDA decreased 6.0%, or $18.4 million, to $287.5 million as compared to $305.8 million for the three months ended March 31, 2022, and adjusted EBITDA decreased 3.8%, or $13.1 million, to $332.4 million as compared to $345.5 million for the three months ended March 31, 2022. For a reconciliation of EBITDA and adjusted EBITDA to net income attributable to common stock, the most comparable GAAP financial measure, see Non-GAAP Financial Measures below.

Segment Results

We report our results under three reportable segments: Electric Power, Renewable Energy and Underground and Infrastructure. Reportable segment information, including revenues and operating income by type of work, is gathered from each of our operating companies. Classification of our operating company revenues by type of work for segment reporting purposes can at times require judgment on the part of management. Our operating companies may perform joint projects for customers in multiple industries, deliver multiple types of services under a single customer contract or provide service offerings to various industries. For example, we perform joint trenching projects to install distribution lines for electric power and natural gas customers. Integrated operations and common administrative support for operating companies require that certain allocations be made to determine segment profitability, including allocations of corporate shared and indirect operating costs as

36

well as general and administrative costs. Certain corporate costs are not allocated, including corporate facility costs; non-allocated corporate salaries, benefits and incentive compensation; acquisition and integration costs; non-cash stock-based compensation; amortization related to intangible assets; asset impairments related to goodwill and intangible assets; and change in fair value of contingent consideration liabilities.

The following table sets forth segment revenues, segment operating income (loss) and operating margins for the periods indicated. Operating margin is calculated by dividing operating income (loss) by revenues. The following table also includes the dollar and percentage change from the prior period (dollars in thousands):

	Three Months Ended March 31,								Change
	2023				2022				$		%
Revenues:
Electric Power Infrastructure Solutions	$	2,336,037	52.7	%	$	2,138,697	53.9	%	$	197,340	9.2	%
Renewable Energy Infrastructure Solutions	1,008,300		22.8		875,632		22.1		132,668		15.2	%
Underground Utility and Infrastructure Solutions	1,084,489		24.5		951,196		24.0		133,293		14.0	%
Consolidated revenues	$	4,428,826	100.0	%	$	3,965,525	100.0	%	$	463,301	11.7	%
Operating income (loss):
Electric Power Infrastructure Solutions	$	215,149	9.2	%	$	203,419	9.5	%	$	11,730	5.8	%
Renewable Energy Infrastructure Solutions	35,656		3.5	%	69,942		8.0	%	(34,286)		(49.0)	%
Underground Utility and Infrastructure Solutions	61,573		5.7	%	48,175		5.1	%	13,398		27.8	%
Corporate and Non-Allocated Costs	(186,518)		(4.2)	%	(204,020)		(5.1)	%	17,502		(8.6)	%
Consolidated operating income	$	125,860	2.8	%	$	117,516	3.0	%	$	8,344	7.1	%

Electric Power Infrastructure Solutions Segment Results

Revenues. The increase in revenues for the three months ended March 31, 2023 was due to increased spending by our utility customers on grid modernization and hardening, as well as approximately $65 million in revenues attributable to acquired businesses.

Operating Income. Operating income increased for the three months ended March 31, 2023 primarily due to the increase in revenues explained above. Operating margin decreased during the three months ended March 31, 2023 partially due to $5.5 million of lower equity in earnings from our integral unconsolidated affiliates, primarily due to reduced emergency restoration services revenues for one of these affiliates.

Renewable Energy Infrastructure Solutions Segment Results

Revenues. The increase in revenues for the three months ended March 31, 2023 was primarily due to the timing of large renewable energy projects, as well as approximately $35 million in revenues attributable to acquired businesses. These increases were partially offset by approximately $17 million as a result of unfavorable foreign currency exchange rates.

Operating Income. The decrease in operating income and operating margin during the three months ended March 31, 2023 was attributable to access delays, logistical challenges and other issues outside of our control that increased costs associated with a large renewable energy project in Canada and cost absorption pressure related to higher levels of fixed costs related to resources required to support the expected increase in project activity in the second half of 2023 and into 2024.

Underground Utility and Infrastructure Solutions Segment Results

Revenues. The increase in revenues for the three months ended March 31, 2023 was due to higher demand from our gas utility services and industrial services customers, as well as increased revenues associated with large pipeline projects in Canada. These increases were partially offset by approximately $22 million as a result of unfavorable foreign currency exchange rates.

Operating Income. The increase in operating income and operating margin for the three months ended March 31, 2023 was primarily due to the increase in revenues, which contributed to higher levels of fixed cost absorption.

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Corporate and Non-Allocated Costs

The decrease in corporate and non-allocated costs during the three months ended March 31, 2023 was primarily due to a $43.3 million decrease in intangible asset amortization, largely associated with the acquisition of Blattner. This decrease was partially offset by an aggregate increase of $25.8 million primarily related to deferred compensation liabilities due to market fluctuations; compensation expense, primarily related to non-cash stock compensation expense and salaries due partially to growth in business; acquisition and integration costs related to recent acquisitions; and training costs.

Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA

EBITDA and adjusted EBITDA, financial measures not recognized under GAAP, when used in connection with net income attributable to common stock, are intended to provide useful information to investors and analysts as they evaluate our performance. EBITDA is defined as earnings before interest and other financing expenses, taxes, depreciation and amortization, and adjusted EBITDA is defined as EBITDA adjusted for certain other items as described below. These measures should not be considered as an alternative to net income attributable to common stock or other financial measures of performance that are derived in accordance with GAAP. Management believes that the exclusion of these items from net income attributable to common stock enables us and our investors to more effectively evaluate our operations period over period and to identify operating trends that might not be apparent when including the excluded items.

As to certain of the items below, (i) non-cash stock-based compensation expense varies from period to period due to acquisition activity, changes in the estimated fair value of performance-based awards, forfeiture rates, accelerated vesting and amounts granted; (ii) acquisition and integration costs vary from period to period depending on the level of our acquisition activity; (iii) equity in (earnings) losses of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of such affiliates, the operations of which are not operationally integral to us; (iv) unrealized mark-to-market adjustments on investments vary from period to period based on fluctuations in the market price of such company’s common stock; (v) gains and losses on the sale of investments vary from period to period depending on activity; and (vi) change in fair value of contingent consideration liabilities varies from period to period depending on the performance in post-acquisition periods of certain acquired businesses, and the effect of present value accretion on fair value calculations. Because EBITDA and adjusted EBITDA, as defined, exclude some, but not all, items that affect net income attributable to common stock, such measures may not be comparable to similarly titled measures of other companies. The most comparable

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GAAP financial measure, net income attributable to common stock, and information reconciling the GAAP and non-GAAP financial measures, are included below. The following table shows dollars in thousands.

	Three Months Ended
	March 31,
	2023		2022
Net income attributable to common stock (GAAP as reported)	$	95,046	$	84,641
Interest and other financing expenses	41,693		24,728
Interest income	(1,516)		(69)
(Benefit from) provision for income taxes	(3,421)		6,556
Depreciation expense	78,382		70,954
Amortization of intangible assets	72,403		115,751
Interest, income taxes, depreciation and amortization included in equity in earnings of integral unconsolidated affiliates	4,870		3,261
EBITDA	287,457		305,822
Non-cash stock-based compensation	27,451		22,992
Acquisition and integration costs (1)	19,888		15,131
Equity in earnings of non-integral unconsolidated affiliates	(1,617)		(5,338)
Unrealized loss from mark-to-market adjustment on investment (2)	—		8,393
Gains on sales of investments (3)	(822)		(6,696)
Change in fair value of contingent consideration liabilities	—		5,169
Adjusted EBITDA	$	332,357	$	345,473

(1)    The amount for the three months ended March 31, 2022 includes $11.5 million of expenses that are associated with change of control payments as a result of the acquisition of Blattner.

(2)     The amount for the three months ended March 31, 2022 is an unrealized loss from a decrease in fair value of our investment in Starry.

(3)     The amount for the three months ended March 31, 2022 is a gain as a result of the sale of a non-marketable equity security interest equity in a technology company.

Remaining Performance Obligations and Backlog

A performance obligation is a promise in a contract with a customer to transfer a distinct good or service. Our remaining performance obligations represent management’s estimate of consolidated revenues that are expected to be realized from the remaining portion of firm orders under fixed price contracts not yet completed or for which work has not yet begun, which includes estimated revenues attributable to consolidated joint ventures and variable interest entities, revenues from funded and unfunded portions of government contracts to the extent they are reasonably expected to be realized, and revenues from change orders and claims to the extent management believes they will be earned and are probable of collection.

We have also historically disclosed our backlog, a measure commonly used in our industry but not recognized under GAAP. We believe this measure enables management to more effectively forecast our future capital needs and results and better identify future operating trends that may not otherwise be apparent. We believe this measure is also useful for investors in forecasting our future results and comparing us to our competitors. Our remaining performance obligations are a component of backlog, which also includes estimated orders under MSAs, including estimated renewals, and non-fixed price contracts expected to be completed within one year. Our methodology for determining backlog may not be comparable to the methodologies used by other companies.

As of March 31, 2023 and December 31, 2022, MSAs accounted for 50% and 52% of our estimated 12-month backlog and 61% and 65% of our total backlog. Generally, our customers are not contractually committed to specific volumes of services under our MSAs, and most of our contracts can be terminated on short notice even if we are not in default. We determine the estimated backlog for these MSAs using recurring historical trends, factoring in seasonal demand and projected customer needs based upon ongoing communications. In addition, many of our MSAs are subject to renewal, and these potential renewals are considered in determining estimated backlog. As a result, estimates for remaining performance obligations and backlog are subject to change based on, among other things, project accelerations; project cancellations or delays, including but not limited to those caused by commercial issues, regulatory requirements, natural disasters, emergencies

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and adverse weather conditions; and final acceptance of change orders by customers. These factors can cause revenues to be realized in periods and at levels that are different than originally projected.

The following table reconciles total remaining performance obligations to our backlog (a non-GAAP financial measure) by reportable segment along with estimates of amounts expected to be realized within 12 months (in thousands):

	March 31, 2023				December 31, 2022
	12 Month		Total		12 Month		Total
Electric Power Infrastructure Solutions
Remaining performance obligations	$	2,420,570	$	3,986,724	$	2,124,820	$	3,033,472
Estimated orders under MSAs and short-term, non-fixed price contracts	5,145,233		9,670,799		5,415,427		10,049,435
Backlog	$	7,565,803	$	13,657,523	$	7,540,247	$	13,082,907
Renewable Energy Infrastructure Solutions
Remaining performance obligations	$	3,914,949	$	5,080,689	$	3,183,568	$	4,638,115
Estimated orders under MSAs and short-term, non-fixed price contracts	166,338		230,341		57,555		84,094
Backlog	$	4,081,287	$	5,311,030	$	3,241,123	$	4,722,209
Underground Utility and Infrastructure Solutions
Remaining performance obligations	$	1,052,322	$	1,189,173	$	1,038,543	$	1,129,837
Estimated orders under MSAs and short-term, non-fixed price contracts	1,928,761		5,116,471		1,973,982		5,158,814
Backlog	$	2,981,083	$	6,305,644	$	3,012,525	$	6,288,651
Total
Remaining performance obligations	$	7,387,841	$	10,256,586	$	6,346,931	$	8,801,424
Estimated orders under MSAs and short-term, non-fixed price contracts	7,240,332		15,017,611		7,446,964		15,292,343
Backlog	$	14,628,173	$	25,274,197	$	13,793,895	$	24,093,767

The increase in remaining performance obligations from December 31, 2022 to March 31, 2023 was attributable to multiple new project awards, while the increase in backlog was attributable to these new awards and extensions and increases in expected volumes under MSAs.

Liquidity and Capital Resources

Overview

We plan to fund our working capital, capital expenditures, debt service, dividends and other cash requirements with our current available liquidity and cash from operations, which could be affected by general economic, financial, competitive, legislative, regulatory, business and other factors, many of which are beyond our control. Management monitors financial markets and national and global economic conditions for factors that may affect our liquidity and capital resources.

Our capital deployment priorities that require the use of cash include: (i) working capital to fund ongoing operating needs, (ii) capital expenditures to meet anticipated demand for our services, (iii) acquisitions and investments to facilitate the long-term growth and sustainability of our business, and (iv) return of capital to stockholders, including through the payment of dividends and repurchases of our outstanding common stock. We intend to fund these requirements primarily with cash flow from operating activities, as well as debt financing as needed.

Cash Requirements and Capital Allocation

During the three months ended March 31, 2023, there were no material changes outside the ordinary course of business in the specified contractual obligations or changes to our capital allocation priorities as set forth in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II of the 2022 Annual Report. We anticipate that our future cash flows from operating activities, cash and cash equivalents on hand, existing borrowing capacity under our

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senior credit facility and commercial paper program and ability to access capital markets for additional capital will provide sufficient funds to enable us to meet our cash requirements for the next twelve months and over the longer term.

Significant Sources of Cash

Cash flow from operating activities is primarily influenced by demand for our services and operating margins but is also influenced by the timing of working capital needs associated with the various types of services that we provide. Our working capital needs may increase when we commence large volumes of work under circumstances where project costs are required to be paid before the associated receivables are billed and collected. Additionally, operating cash flows may be negatively impacted as a result of unpaid and delayed change orders and claims. Changes in project timing due to delays or accelerations and other economic, regulatory, market and political factors that may affect customer spending could also impact cash flow from operating activities. Further information with respect to our cash flow from operating activities is set forth below and in Note 16 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Our available commitments under our senior credit facility and cash and cash equivalents as of March 31, 2023 were as follows (in thousands):

	March 31, 2023
Total capacity available for revolving loans, credit support for commercial paper program and letters of credit	$	2,640,000
Less:
Borrowings of revolving loans	196,787
Commercial paper program notes outstanding(1)	598,750
Letters of credit outstanding	272,200
Available commitments for revolving loans, credit support for commercial paper program and letters of credit	1,572,263
Plus:
Cash and cash equivalents (2)	217,115
Total available commitments under senior credit facility and cash and cash equivalents	$	1,789,378

(1)    Represents unsecured notes issued under our commercial paper program, which allows for the issuance of notes up to a maximum aggregate face amount of $1.0 billion outstanding at any time. Available commitments for revolving loans under our senior credit facility must be maintained to provide credit support for notes issued under our commercial paper program, and therefore such notes effectively reduce the available borrowing capacity under our senior credit facility.

(2)    Further information with respect to our cash and cash equivalents is set forth below and in Note 15 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report. This amount includes $135.6 million in jurisdictions outside of the U.S., principally in Canada and Australia. There are currently no legal or economic restrictions that would materially impede our ability to repatriate cash.

We consider our investment policies related to cash and cash equivalents to be conservative, as we maintain a diverse portfolio of what we believe to be high-quality cash and cash equivalent investments with short-term maturities. Additionally, subject to the conditions specified in the credit agreement for our senior credit facility, we have the option to increase the capacity of our senior credit facility, in the form of an increase in the revolving commitments, term loans or a combination thereof, from time to time, upon receipt of additional commitments from new or existing lenders by up to an additional (i) $400.0 million plus (ii) additional amounts so long as the Incremental Leverage Ratio Requirement (as defined in the credit agreement) is satisfied at the time of such increase. The Incremental Leverage Ratio Requirement requires, among other things, after giving pro forma effect to such increase and the use of proceeds therefrom, compliance with the credit agreement’s financial covenants as of the most recent fiscal quarter end for which financial statements were required to be delivered. Further information with respect to our debt obligations is set forth in Note 8 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

We may also seek to access the capital markets from time to time to raise additional capital, increase liquidity as necessary, refinance or extend the term of our existing indebtedness, fund acquisitions or otherwise fund our capital needs. While our financial strategy and consistent performance have allowed us to maintain investment grade ratings, our ability to access capital markets in the future depends on a number of factors, including our financial performance and financial position, our credit ratings, industry conditions, general economic conditions, our backlog, capital expenditure commitments, market conditions and market perceptions of us and our industry.

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Sources and Uses of Cash, Cash Equivalents and Restricted Cash During the Three Months Ended March 31, 2023 and 2022

In summary, our cash flows for each period were as follows (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Net cash provided by operating activities	$	38,409	$	85,090
Net cash used in investing activities	$	(488,624)	$	(93,069)
Net cash provided by financing activities	$	242,687	$	16,550

Operating Activities

Net cash provided by operating activities of $38.4 million and $85.1 million in the three months ended March 31, 2023 and 2022 primarily reflected earnings adjusted for non-cash items and cash used by the main components of working capital: “Accounts and notes receivable,” “Contract assets,” “Prepaid expenses and other current assets,” “Accounts payable and accrued expenses,” and “Contract liabilities.”

As discussed above, cash flow provided by operating activities is primarily influenced by demand for our services and operating margins but is also influenced by working capital needs. Our working capital needs may increase when we commence large volumes of work under circumstances where project costs, primarily labor, equipment and subcontractors, are required to be paid before the associated receivables are billed and collected and when we incur costs for work that is the subject of unpaid change orders and claims. Accordingly, changes within working capital in accounts receivable, contract assets and contract liabilities are normally related and are typically affected on a collective basis by changes in revenue due to the timing and volume of work performed and variability in the timing of customer billings and payments, as well as change orders and claims. Additionally, working capital needs are generally higher during the summer and fall due to increased demand for our services when favorable weather conditions exist in many of our operating regions. Conversely, working capital assets are typically converted to cash during the winter. These seasonal trends can be offset by changes in project timing due to delays or accelerations and other economic factors that may affect customer spending, including market conditions or the impact of certain unforeseen events (e.g., regulatory and other actions that impact the supply chain for certain materials).

Days sales outstanding (DSO) represents the average number of days it takes revenues to be converted into cash, which management believes is an important metric for assessing liquidity. A decrease in DSO has a favorable impact on cash flow from operating activities, while an increase in DSO has a negative impact on cash flow from operating activities. DSO is calculated by using the sum of current accounts receivable, net of allowance (which includes retainage and unbilled balances), plus contract assets, less contract liabilities, and divided by average revenues per day during the quarter. DSO as of March 31, 2023 was 77 days, which was lower than DSO of 80 days as of March 31, 2022 and lower than our five-year historical average DSO of 80 days. This decrease in DSO as compared to March 31, 2022 was partially due to an increase in contract liabilities related to favorable billing terms on certain large projects, as well as increased revenues. The favorable impact on operating cash flow related to the decrease in DSO was partially offset by increased working capital requirements primarily related to a large renewable transmission project in Canada and the timing of the associated billings, as well as the prepayment of amounts related to certain project materials that require a long lead time.

Investing Activities

Net cash used in investing activities in the three months ended March 31, 2023 included $452.3 million related to acquisitions and $80.3 million of capital expenditures. Partially offsetting these items were $39.1 million of proceeds from the sale of a non-integral equity investment and $10.4 million of proceeds from the sale of property and equipment. Further information with respect to our acquisitions and investments in affiliates is set forth in Notes 5 and 6 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Net cash used in investing activities in the three months ended March 31, 2022 included $109.9 million of capital expenditures and $8.3 million of cash paid for equity and other investments. Partially offsetting these items was $16.5 million of cash received from investments, which primarily related to proceeds received from the sale of an investment, and $8.8 million of proceeds from the sale of property and equipment.

Our industry is capital intensive, and we expect substantial capital expenditures and commitments for equipment purchases and equipment lease and rental arrangements to be needed for the foreseeable future in order to meet anticipated demand for our services. In addition, we expect to continue to pursue strategic acquisitions and investments, although we cannot predict the timing or amount of the cash needed for these initiatives.

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Financing Activities

Net cash provided by financing activities in the three months ended March 31, 2023 included $380.6 million of net borrowings under our senior credit facility and commercial paper program, partially offset by $108.7 million of cash payments to satisfy tax withholding obligations associated with stock-based compensation; $12.8 million of cash payments for dividends and $8.7 million of distributions to non-controlling interests, net of contributions.

Net cash provided by financing activities in the three months ended March 31, 2022 included $68.0 million of net borrowings under our senior credit facility, partially offset by $15.7 million of net repayments of short-term debt, $11.3 million of payments related to tax withholding for share-based compensation, $10.8 million of cash payments for dividends and $9.5 million of cash payments for common stock repurchases.

We expect to continue to utilize cash for similar financing activities in the future, including repayments under our senior credit facility and commercial paper program, payment of cash dividends and repurchases of our common stock and/or debt securities.

Critical Accounting Estimates

The discussion and analysis of our financial condition and results of operations are based on our condensed consolidated financial statements, which have been prepared in accordance with GAAP. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with GAAP, have been condensed or omitted pursuant to those rules and regulations. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist as of the date the condensed consolidated financial statements are published and the reported amounts of revenues and expenses recognized during the periods presented. We review all significant estimates affecting our condensed consolidated financial statements on a recurring basis and record the effect of any necessary adjustments prior to their publication. Judgments and estimates are based on our beliefs and assumptions derived from information available at the time such judgments and estimates are made. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements. There can be no assurance that actual results will not differ from those estimates. Management has reviewed its development and selection of critical accounting estimates with the audit committee of our Board of Directors. Our accounting policies are primarily described in Note 2 of the Notes to Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data in Part II of the 2022 Annual Report and should be read in conjunction with the accounting policies identified that we believe affect our more significant judgments and estimates detailed in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of Part II of our 2022 Annual Report.

Item 3.Quantitative and Qualitative Disclosures about Market Risk.

There were no material changes to our quantitative and qualitative disclosures about market risk during the three months ended March 31, 2023. Refer to the information on financial market risk related to changes in interest rates and foreign currency exchange rates in Item 7A. Quantitative and Qualitative Disclosures About Market Risk of Part II of our 2022 Annual Report. Our primary exposure to market risk relates to unfavorable changes in interest rates and currency exchange rates.

Item 4.Controls and Procedures.

Attached as exhibits to this Quarterly Report on Form 10-Q are certifications of Quanta’s Chief Executive Officer and Chief Financial Officer that are required in accordance with Rule 13a-14 of the Securities Exchange Act of 1934, as amended (the Exchange Act). This Item 4. section includes information concerning the controls and controls evaluation referred to in the certifications, and it should be read in conjunction with the certifications for a more complete understanding of the topics presented.

Evaluation of Disclosure Controls and Procedures

Our management has established and maintains a system of disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act, such as this Quarterly Report on Form 10-Q, is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms. The disclosure controls and procedures are also designed to provide reasonable assurance that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

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As of the end of the period covered by this Quarterly Report, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b), as such disclosure controls and procedures are defined in Rule 13a-15(e) and 15d-15(e) of the Exchange Act. This evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer. Based on this evaluation, these officers have concluded that, as of March 31, 2023, our disclosure controls and procedures were effective to provide reasonable assurance of achieving their objectives.

Evaluation of Internal Control over Financial Reporting

We acquired three business during the three months ended March 31, 2023. We are in the process of integrating these acquired business into our overall internal control over financial reporting process.

Except as noted above, there has been no change in our internal control over financial reporting that occurred during the quarter ended March 31, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Design and Operation of Control Systems

Our management, including the Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and breakdowns can occur because of simple errors or mistakes. Controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

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PART II — OTHER INFORMATION

Item 1.  Legal Proceedings.

We are from time to time party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract, negligence or gross negligence and/or property damage, environmental liabilities, wage and hour claims and other employment-related damages, punitive damages, consequential damages, civil penalties or other losses, or injunctive or declaratory relief, as well as interest and attorneys’ fees associated with such claims. With respect to all such lawsuits, claims and proceedings, we record a reserve when we believe it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. In addition, we disclose matters for which management believes a material loss is at least reasonably possible. See Note 14 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report, which is incorporated by reference in this Item 1, for additional information regarding litigation, claims and other legal proceedings.

Item 1A.  Risk Factors.

Our business is subject to a variety of risks and uncertainties that are difficult to predict and many of which are outside of our control. For a detailed discussion of the risks that affect our business, refer to Item 1A. Risk Factors of Part I of our 2022 Annual Report. As of the date of this filing, there have been no material changes to the risk factors previously described in our 2022 Annual Report. The matters specifically identified are not the only risks and uncertainties facing our company, and risks and uncertainties not known to us or not specifically identified also may impair our business operations. If any of these risks and uncertainties occur, our business, financial condition, results of operations and cash flows could be negatively affected, which could negatively impact the value of an investment in our company.

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Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.

Unregistered Sales of Equity Securities

In January 2023, we completed three acquisitions, on January 5, 2023, January 10, 2023 and January 12, 2023, in which a portion of the consideration consisted of the unregistered issuance of shares of our common stock. The aggregate consideration paid at closing in these acquisitions included 1,018,946 shares of our common stock, valued at $123.5 million as of the acquisition dates.

The shares of common stock issued in these transactions were issued in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, as the shares were issued to the owners of the businesses acquired in privately negotiated transactions not involving any public offering or solicitation.

For additional information about these acquisitions, see Note 5 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Issuer Purchases of Equity Securities During the First Quarter of 2023

The following table contains information about our purchases of equity securities during the three months ended March 31, 2023.

Period	Total Number of Shares Purchased (1)(2)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Plans or Programs (1)
January 1 - 31, 2023
Tax Withholding Obligations (2)	22,646	$	142.81	—
February 1 - 28, 2023
Tax Withholding Obligations (2)	6,771	$	154.97	—
March 1 - 31, 2023
Tax Withholding Obligations (2)	640,052	$	162.03	—
Total	669,469			—	$	345,073,142

(1)On August 6, 2020, we issued a press release announcing that our Board of Directors approved a stock repurchase program that authorizes us to purchase, from time to time through June 30, 2023, up to $500 million of our outstanding common stock. Repurchases under this program can be made in open market and privately negotiated transactions, at our discretion, based on market and business conditions, applicable contractual and legal requirements and other factors. The program does not obligate us to acquire any specific amount of common stock and may be modified or terminated by our Board of Directors at any time at its sole discretion and without notice.

(2)Includes shares purchased from employees to satisfy tax withholding obligations in connection with the vesting of restricted stock unit and performance stock unit awards or the settlement of previously vested but deferred restricted stock unit and performance stock unit awards.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

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Item 6.Exhibits.

Exhibit No.		Description
3.1		Restated Certificate of Incorporation of Quanta Services, Inc. (previously filed as Exhibit 3.1 to Quanta's Form 8-K filed March 26, 2019 and incorporated herein by reference)
3.2		Bylaws of Quanta Services, Inc., as amended and restated January 13, 2023 (previously filed as Exhibit 3.1 to Quanta’s Form 8-K filed January 19, 2023 and incorporated herein by reference)
10.1	*^	Director Compensation Summary, adopted March 29, 2023 and effective as of May 23, 2023
10.2	^	Quanta Services, Inc. Term Sheet for 2023 Annual Incentive Plan – Corporate Employees, Quanta Services, Inc. Term Sheet for 2023 Senior Leadership Long-Term Incentive Plan and Quanta Services, Inc. Term Sheet for 2023 Discretionary Plan – All Employees (previously filed as Exhibit 10.1 to Quanta’s Form 8-K filed March 14, 2023 and incorporated herein by reference)
31.1	*	Certification by Chief Executive Officer pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.2	*	Certification by Chief Financial Officer pursuant to Rule 13a -14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32.1	*	Certification by Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
101	*	The following financial statements from Quanta’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Cash Flows, (v) Condensed Consolidated Statements of Equity and (vi) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and with detailed tags
104	*	The cover page from Quanta’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in Inline XBRL (included as Exhibit 101)

_______________________________________

*	Filed or furnished herewith
^	Management contracts or compensatory plans or arrangements

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant, Quanta Services, Inc., has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

QUANTA SERVICES, INC.

By:	/s/  PAUL M. NOBEL
	Paul M. Nobel Vice President and Chief Accounting Officer
	(Principal Accounting Officer)

Dated: May 4, 2023

48

EX-10.1

Exhibit 10.1

Director Compensation Summary

(to be effective as of the May 2023 Annual Meeting of the Board of Directors)

At every annual meeting of stockholders at which a non-employee director is elected or re-elected, each such elected or re-elected non-employee director shall receive, (i) an annual award of restricted stock units (RSUs) having a value of $165,000, and (ii) the annual cash retainer(s) set forth below for board membership, committee membership, and board/committee leadership to which such non-employee director is appointed:

	Annual Membership Cash Retainer	Annual Cash Retainer Supplement for Committee Chairmanship
Board of Directors	$105,000	N/A
Audit Committee	$15,000	$25,000
Compensation Committee	$10,000	$20,000
Governance and Nominating Committee	$10,000	$20,000
Investment Committee	$10,000	$20,000

Upon initial appointment to the Board of Directors other than at an annual meeting of stockholders, each such initially appointed non-employee director shall receive, for the period from the appointment through the end of the director service year during which the appointment is made, a pro rata portion of such RSU award and applicable cash retainers.

Upon the appointment of any non-employee director as Chairman of the Board, the non-employee director so appointed shall receive additional annual compensation in the amount of $200,000, of which 50% shall be payable in cash, and 50% shall be payable in RSUs; provided, however, that any non-employee director so appointed other than immediately following the annual meeting of stockholders shall receive a pro rata portion thereof for the period from the appointment through the end of the director service year.

Unless the director's board service is earlier terminated, restricted stock or RSUs awarded to non-employee directors will vest on June 1st following conclusion of the director service year; provided, however, that subject to the terms of applicable award agreements, unvested restricted stock or RSUs held by (i) any non-employee director who is not nominated for or elected to a new term, including for example, due to a reduction in the size of the Board, age precluding a re-nomination, the identification of a new nominee, or the desire to retire at the end of a term, or (ii) any non-employee director who resigns at Quanta’s convenience, including any resignation resulting from the non-employee director’s failure to receive a majority of the votes cast in an election for directors as required by Quanta’s Bylaws, will vest in full on the earlier of (a) June

1st following conclusion of the director service year or (b) the date of such non-employee director’s termination of service.  Subject to the terms of applicable award agreements, RSUs will be settled in shares of Quanta common stock, provided that non-employee directors may elect to settle up to 50% of any RSU award in cash if the non-employee director is in compliance with applicable stock ownership guidelines as of the date of settlement of such RSUs and is expected to continue to be in compliance with applicable stock ownership guidelines immediately following such cash settlement of RSUs.

Each non-employee director shall receive a fee for attendance at each meeting of the Board of Directors or any committee in excess of the number of meetings per director service year specified below as follows: 

	Fee for Meetings in Excess of the Following Number Per Service Year:	Physical Meeting	Telephonic Meeting
Board of Directors	9	$2,000	$1,000
Audit Committee	9	$1,000	$500
Compensation Committee	9	$1,000	$500
Governance and Nominating Committee	9	$1,000	$500
Investment Committee	9	$1,000	$500

Directors are reimbursed for reasonable out-of-pocket expenses incurred in attending meetings of the Board of Directors or the committees thereof, and for other expenses reasonably incurred in their capacity as directors of Quanta.

Notwithstanding anything herein to the contrary, directors who also are employees of Quanta or any of its subsidiaries do not receive additional compensation for serving as directors.

Adopted March 29, 2023, to be effective May 23, 2023

EX-31.1

Exhibit 31.1

I, Earl C. Austin, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Quanta Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 4, 2023	By:	/s/ EARL C. AUSTIN, JR.
		Earl C. Austin, Jr.
		President and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

I, Jayshree S. Desai, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Quanta Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 4, 2023	By:	/s/ JAYSHREE S. DESAI
		Jayshree S. Desai
		Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Each of the undersigned officers of Quanta Services, Inc. (the “Company”) hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to such officer’s knowledge that:

(1) the accompanying quarterly report on Form 10-Q for the period ending March 31, 2023 as filed with the U.S. Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 4, 2023

/s/ EARL C. AUSTIN, JR.  

Earl C. Austin, Jr.

President and Chief Executive Officer

Dated: May 4, 2023

/s/ JAYSHREE S. DESAI

Jayshree S. Desai

Chief Financial Officer 

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	May 02, 2023
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-13831
Entity Registrant Name	Quanta Services, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	74-2851603
Entity Address, Address Line One	2727 North Loop West
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77008
City Area Code	713
Local Phone Number	629-7600
Title of 12(b) Security	Common Stock, $0.00001 par value
Trading Symbol	PWR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		145,175,564
Document Fiscal Period Focus	Q1
Amendment Flag	false
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001050915

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 217,115	$ 428,505
Accounts receivable, net	3,644,623	3,674,525
Contract assets	1,287,454	1,080,206
Inventories	159,164	103,265
Prepaid expenses and other current assets	262,230	249,569
Total current assets	5,570,586	5,536,070
Property and equipment, net	2,191,205	2,030,464
Operating lease right-of-use assets	240,718	229,691
Other assets, net	663,954	622,736
Other intangible assets, net	1,499,574	1,458,631
Goodwill	3,873,098	3,586,745
Total assets	14,039,135	13,464,337
Current Liabilities:
Current maturities of long-term debt	39,691	37,495
Current portion of operating lease liabilities	76,410	74,052
Accounts payable and accrued expenses	2,168,174	2,153,129
Contract liabilities	1,143,041	1,141,518
Total current liabilities	3,427,316	3,406,194
Long-term debt, net of current maturities	4,084,408	3,692,432
Operating lease liabilities, net of current portion	181,516	171,512
Deferred income taxes	236,220	227,861
Insurance and other non-current liabilities	587,721	567,519
Total liabilities	8,517,181	8,065,518
Commitments and Contingencies
Equity:
Common stock, $0.00001 par value, 600,000,000 shares authorized, 173,537,555 and 170,638,525 shares issued, and 145,160,159 and 142,930,598 shares outstanding	2	2
Additional paid-in capital	2,869,141	2,718,988
Retained earnings	4,246,158	4,163,212
Accumulated other comprehensive loss	(309,577)	(310,677)
Treasury stock, 28,377,396 and 27,707,927 common shares	(1,292,308)	(1,188,061)
Total stockholders’ equity	5,513,416	5,383,464
Non-controlling interests	8,538	15,355
Total equity	5,521,954	5,398,819
Total liabilities and equity	$ 14,039,135	$ 13,464,337

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	600,000,000	600,000,000
Common stock, shares issued (in shares)	173,537,555	170,638,525
Common stock, shares outstanding (in shares)	145,160,159	142,930,598
Treasury stock, common shares (in shares)	28,377,396	27,707,927

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Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenues	$ 4,428,826	$ 3,965,525
Cost of services	3,855,631	3,417,354
Gross profit	573,195	548,171
Equity in earnings of integral unconsolidated affiliates	9,620	15,152
Selling, general and administrative expenses	(384,552)	(324,887)
Amortization of intangible assets	(72,403)	(115,751)
Change in fair value of contingent consideration liabilities	0	(5,169)
Operating income	125,860	117,516
Interest and other financing expenses	(41,693)	(24,728)
Interest income	1,516	69
Other income (expense), net	7,866	(1,273)
Income before income taxes	93,549	91,584
(Benefit from) provision for income taxes	(3,421)	6,556
Net income	96,970	85,028
Less: Net income attributable to non-controlling interests	1,924	387
Net income attributable to common stock	$ 95,046	$ 84,641
Earnings per share attributable to common stock:
Basic (in dollars per share)	$ 0.66	$ 0.59
Diluted (in dollars per share)	$ 0.64	$ 0.57
Shares used in computing earnings per share:
Weighted average basic shares outstanding (in shares)	144,467	143,541
Weighted average diluted shares outstanding (in shares)	148,661	148,082

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 96,970	$ 85,028
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustment	309	13,528
Other income (loss)	791	(253)
Other comprehensive income, net of taxes	1,100	13,275
Comprehensive income	98,070	98,303
Less: Comprehensive income attributable to non-controlling interests	1,924	387
Comprehensive income attributable to common stock	$ 96,146	$ 97,916

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities:
Net income	$ 96,970	$ 85,028
Adjustments to reconcile net income to net cash provided by operating activities—
Depreciation	78,382	70,954
Amortization of intangible assets	72,403	115,751
Change in fair value of contingent consideration liabilities	0	5,169
Equity in earnings of unconsolidated affiliates, net of distributions	18,452	(20,490)
Amortization of discounts and deferred financing costs	8,122	1,458
Gain on sale of property and equipment	(3,511)	(2,193)
Gains on sales of investments	(2,401)	(6,696)
Unrealized loss from mark-to-market adjustment on investment	0	8,393
Increase in provision for credit losses	2,358	133
Deferred income tax benefit	(11,997)	(8,098)
Non-cash stock-based compensation	27,451	22,992
Foreign currency (gain) loss	(245)	1,581
Payments for contingent consideration liabilities recorded in earnings	(247)	(63)
Changes in assets and liabilities, net of non-cash transactions	(247,328)	(188,829)
Net cash provided by operating activities	38,409	85,090
Cash Flows from Investing Activities:
Capital expenditures	(80,319)	(109,937)
Proceeds from sale of property and equipment	10,356	8,810
Proceeds from insurance settlements related to property and equipment	395	191
Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired	(452,252)	0
Investments in unconsolidated affiliates and other	(5,492)	(8,319)
Proceeds from the sale or settlement of certain investments	39,069	16,460
Cash paid for intangible assets	(381)	(274)
Net cash used in investing activities	(488,624)	(93,069)
Cash Flows from Financing Activities:
Borrowings under credit facility and commercial paper program	4,431,075	1,369,151
Payments under credit facility and commercial paper program	(4,050,437)	(1,301,146)
Payments on other long-term debt	(3,126)	(2,079)
Net borrowings (repayments) of short-term debt	175	(15,703)
Payments of financing costs	0	(48)
Payments for contingent consideration liabilities recorded at acquisition date	(4,753)	(1,514)
Distributions to non-controlling interests, net of contributions received	(8,741)	(538)
Payments related to tax withholding for share-based compensation	(108,689)	(11,252)
Payments of dividends	(12,817)	(10,842)
Repurchase of common stock	0	(9,479)
Net cash provided by financing activities	242,687	16,550
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	(1,562)	378
Net (decrease) increase in cash, cash equivalents and restricted cash	(209,090)	8,949
Cash, cash equivalents and restricted cash, beginning of period	433,214	231,887
Cash, cash equivalents and restricted cash, end of period	$ 224,124	$ 240,836

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Condensed Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total Stockholders' Equity	Non-controlling Interests
Balance (in shares) at Dec. 31, 2021		142,633,934
Balance at Dec. 31, 2021	$ 5,116,921	$ 2	$ 2,615,410	$ 3,714,843	$ (237,689)	$ (980,265)	$ 5,112,301	$ 4,620
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	13,275				13,275		13,275
Stock-based compensation activity (in shares)		1,216,468
Stock-based compensation activity	(51,813)		21,830			(73,643)	(51,813)
Common stock repurchases (in shares)		(84,798)
Common stock repurchases	(10,426)					(10,426)	(10,426)
Dividends declared	(10,459)			(10,459)			(10,459)
Distributions to non-controlling interests	(538)							(538)
Net income	85,028			84,641			84,641	387
Balance (in shares) at Mar. 31, 2022		143,765,604
Balance at Mar. 31, 2022	$ 5,141,988	$ 2	2,637,240	3,789,025	(224,414)	(1,064,334)	5,137,519	4,469
Balance (in shares) at Dec. 31, 2022	142,930,598	142,930,598
Balance at Dec. 31, 2022	$ 5,398,819	$ 2	2,718,988	4,163,212	(310,677)	(1,188,061)	5,383,464	15,355
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	1,100				1,100		1,100
Acquisitions (in shares)		1,018,946
Acquisitions	123,503		123,503				123,503
Stock-based compensation activity (in shares)		1,210,615
Stock-based compensation activity	(77,597)		26,650			(104,247)	(77,597)
Dividends declared	(12,100)			(12,100)			(12,100)
Distributions to non-controlling interests	(8,741)							(8,741)
Net income	$ 96,970			95,046			95,046	1,924
Balance (in shares) at Mar. 31, 2023	145,160,159	145,160,159
Balance at Mar. 31, 2023	$ 5,521,954	$ 2	$ 2,869,141	$ 4,246,158	$ (309,577)	$ (1,292,308)	$ 5,513,416	$ 8,538

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Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares						3 Months Ended
	Mar. 29, 2023	Dec. 13, 2022	Aug. 31, 2022	May 27, 2022	Mar. 30, 2022	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.08	$ 0.08	$ 0.07	$ 0.07	$ 0.07	$ 0.08	$ 0.07

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Business and Organization, Basis of Presentation and Accounting Policies

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Organization, Basis of Presentation and Accounting Policies

1. BUSINESS AND ORGANIZATION, BASIS OF PRESENTATION AND ACCOUNTING POLICIES:

Quanta Services, Inc. (together with its subsidiaries, Quanta) is a leading provider of comprehensive infrastructure solutions for the electric and gas utility, renewable energy, communications, pipeline and energy industries in the United States, Canada, Australia and select other international markets.

These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP), have been condensed or omitted pursuant to those rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Quanta’s Annual Report on Form 10-K for the year ended December 31, 2022. Quanta believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income and cash flows with respect to the interim condensed consolidated financial statements have been included. The results of operations and comprehensive income for the interim periods are not necessarily indicative of the results for the entire fiscal year. The results of Quanta have historically been subject to significant seasonal fluctuations.

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New Accounting Pronouncements

3 Months Ended

Mar. 31, 2023

Accounting Standards Update and Change in Accounting Principle [Abstract]

New Accounting Pronouncements

2. NEW ACCOUNTING PRONOUNCEMENTS:

Recently Adopted Guidance

In October 2021, the Financial Accounting Standards Board (FASB) issued an update that requires recognition and measurement of contract assets and contract liabilities acquired in a business combination in accordance with FASB ASC 606 (Revenue from Contracts with Customers). At the acquisition date, an acquirer should account for the related contract revenue in accordance with FASB ASC 606. This update is effective for interim and annual periods beginning after December 15, 2022, with amendments generally applied prospectively. Quanta adopted this update effective January 1, 2023, and it did not have a material impact on Quanta’s consolidated financial statements.

New Accounting Pronouncement Not Yet Adopted

In June 2022, the FASB issued an update that clarifies the guidance in FASB ASC 820 (Fair Value Measurement) for equity securities subject to contractual sale restrictions. The update prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. This update is effective for interim and annual periods after December 15, 2023. Early adoption is permitted. This guidance will increase the fair market value of the consideration paid in equity securities in a business combination, and therefore it may increase the amount allocated to goodwill. Quanta will adopt this update by January 1, 2024, and it is not expected to have a material impact on Quanta’s consolidated financial statements.

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Revenue Recognition and Related Balance Sheet Accounts

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition and Related Balance Sheet Accounts

3. REVENUE RECOGNITION AND RELATED BALANCE SHEET ACCOUNTS:

Contracts

Certain of Quanta’s services are generally provided pursuant to master service agreements (MSAs), repair and maintenance contracts and fixed price and non-fixed price construction contracts. These contracts are classified into three categories: unit-price contracts, cost-plus contracts and fixed price contracts.

The following tables present Quanta’s revenue disaggregated by contract type and by geographic location, as determined by the job location (in thousands):

	Three Months Ended March 31,
	2023				2022
By contract type:
Fixed price contracts	$	1,934,888	43.7	%	$	1,689,635	42.6	%
Unit-price contracts	1,497,394		33.8		1,357,602		34.2
Cost-plus contracts	996,544		22.5		918,288		23.2
Total revenues	$	4,428,826	100.0	%	$	3,965,525	100.0	%

	Three Months Ended March 31,
	2023				2022
By primary geographic location:
United States	$	3,666,365	82.8	%	$	3,323,969	83.8	%
Canada	542,360		12.2		550,905		13.9
Australia	154,677		3.5		55,201		1.4
Others	65,424		1.5		35,450		0.9
Total revenues	$	4,428,826	100.0	%	$	3,965,525	100.0	%

Under fixed-price contracts, as well as unit-price contracts with more than an insignificant amount of partially completed units, revenue is recognized as performance obligations are satisfied over time, with the percentage completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation. Approximately 50.1% and 51.2% of Quanta’s revenues recognized during the three months ended March 31, 2023 and 2022 were associated with this revenue recognition method.

Performance Obligations

As of March 31, 2023 and December 31, 2022, the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations was approximately $10.26 billion and $8.80 billion, with 72.0% and 72.1% expected to be recognized in the subsequent twelve months. These amounts represent management’s estimates of the consolidated revenues that are expected to be realized from the remaining portion of firm orders under fixed price contracts not yet completed or for which work had not yet begun as of such dates. For purposes of calculating remaining performance obligations, Quanta includes all estimated revenues attributable to consolidated joint ventures and variable interest entities, revenues from funded and unfunded portions of government contracts to the extent they are reasonably expected to be realized, and revenues from change orders and claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations are potential orders under MSAs and non-fixed price contracts expected to be completed within one year.

Contract Estimates and Changes in Estimates

Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors, including unforeseen or changed circumstances not included in Quanta’s cost estimates or covered by its contracts. Some of the factors that can result in positive changes in estimates on projects include successful execution through project risks, reduction of estimated project costs or increases of estimated revenues. Some of the factors that can result in negative changes in estimates include concealed or unknown site conditions; changes to or disputes with customers regarding the scope of services; changes in estimates related to the length of time to complete a performance obligation; changes or delays with respect to permitting and regulatory requirements and materials; changes in the cost of equipment, commodities, materials or skilled labor; unanticipated costs or claims due to delays or failure to perform by customers or third parties; customer failure to provide required materials or equipment; errors in engineering, specifications or designs; project modifications; adverse weather conditions, natural disasters, and other emergencies; and performance and quality issues causing delay (including payment of liquidated damages) or requiring rework or replacement. Any changes in estimates could result in changes to profitability or losses associated with the related performance obligations.

Additionally, changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. Quanta recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated.

As of March 31, 2023 and December 31, 2022, Quanta had recognized revenues of $631.6 million and $549.3 million related to change orders and claims included as contract price adjustments primarily in “Contract assets” in the accompanying consolidated balance sheets. These change orders and claims were in the process of being negotiated in the normal course of business and represent management’s estimates of additional contract revenues that have been earned and are probable of collection.

The largest component of the revenues recognized related to change orders and claims as of March 31, 2023 and of the increase relative to December 31, 2022 is associated with a large renewable transmission project in Canada. During 2021 and the first half of 2022, decreased productivity and additional costs arose from delays, administrative requirements and labor issues due to the COVID-19 pandemic, including incremental governmental requirements and worksite restrictions. Additionally, during the three months ended March 31, 2023, access delays, logistical challenges and other issues outside of Quanta’s control increased costs on the project.

Changes in estimates can result in the recognition of revenue in a current period for performance obligations that were satisfied or partially satisfied in prior periods or the reversal of previously recognized revenue if the currently estimated revenue is less than the previous estimate. The impact of a change in contract estimate is measured as the difference between the revenue or gross profit recognized in the prior period as compared to the revenue or gross profit which would have been recognized had the revised estimate been used as the basis of recognition in the prior period. Changes in estimates can also result in contract losses, which are recognized in full when they are determined to be probable and can be reasonably estimated.

Revenues were positively impacted by 0.1% and 0.8% during the three months ended March 31, 2023 and 2022 as a result of changes in estimates associated with performance obligations on fixed price contracts partially satisfied prior to December 31, 2022 and 2021.

Operating results for the three months ended March 31, 2023 were impacted by less than 5% of gross profit as a result of aggregate changes in contract estimates related to projects that were in progress as of December 31, 2022. There were no material changes in estimates on any individual project.

Operating results for the three months ended March 31, 2022 were favorably impacted by $29.3 million, or 5.3%, of gross profit as a result of aggregate changes in contract estimates related to projects that were in progress as of December 31, 2021. The overall favorable impact resulted from net positive changes in estimates across a large number of projects, primarily as a result of favorable performance and successful mitigation of risks and contingencies as the projects progressed to completion.

Contract Assets and Liabilities

Contract assets and liabilities consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
Contract assets	$	1,287,454	$	1,080,206
Contract liabilities	$	1,143,041	$	1,141,518

Contract assets and liabilities fluctuate period to period based on various factors, including, among others, changes in the number and size of projects in progress at period end; variability in billing and payment terms, such as up-front or advance billings, interim or milestone billings, or deferred billings; and unapproved change orders and contract claims recognized as revenues. The increase in contract assets from December 31, 2022 to March 31, 2023 was primarily due to additional unapproved change orders and claims related to the large renewable transmission project in Canada described above as well as progress on other jobs in which there was a lag in the timing of billings.

During the three months ended March 31, 2023, Quanta recognized revenue of approximately $641.1 million related to contract liabilities outstanding as of the end of the prior year.

Accounts Receivable, Allowance for Credit Losses and Concentrations of Credit Risk

Quanta determines its allowance for credit losses based on an estimate of expected credit losses for financial instruments, primarily accounts receivable and contract assets. The assessment of the allowance for credit losses involves certain judgments

and estimates. Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Expected credit losses are estimated by evaluating trends in historical write-off experience and applying historical loss ratios to pools of financial assets with similar risk characteristics.

Quanta’s historical loss ratio and its determination of its risk pools, which are used to calculate expected credit losses, may be adjusted for changes in customer credit concentrations within its portfolio of financial assets, its customers’ ability to pay, and other considerations, such as economic and market changes, changes to regulatory or technological environments affecting customers and the consistency between current and forecasted economic conditions and historical economic conditions used to derive historical loss ratios. At the end of each quarter, management reassesses these and other relevant factors, including the impact of uncertainty and challenges in the overall economy and in Quanta’s industries and markets, which currently include inflationary pressure, supply chain and other logistical challenges and increased interest rates.

Additional allowance for credit losses is established for financial asset balances with specific customers where collectability has been determined to be improbable based on customer specific facts and circumstances. Quanta considers accounts receivable delinquent after 30 days but, absent certain specific considerations, generally does not consider such amounts delinquent in its credit loss analysis unless the accounts receivable are at least 120 days past due. In addition, management monitors the credit quality of its receivables by, among other things, obtaining credit ratings for significant customers, assessing economic and market conditions and evaluating material changes to a customer’s business, cash flows and financial condition. Should anticipated recoveries relating to receivables fail to materialize, including anticipated recoveries relating to bankruptcies or other workout situations, Quanta could experience reduced cash flows and losses in excess of current allowances provided.

Accounts receivable are written-off against the allowance for credit losses if they are deemed uncollectible.

Activity in Quanta’s allowance for credit losses consisted of the following (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Balance at beginning of period	$	15,644	$	49,749
Increase in provision for credit losses	2,358		133
Write-offs charged against the allowance net of recoveries of amounts previously written off	(1,472)		34
Balance at end of period	$	16,530	$	49,916

Provision for credit losses is included in “Selling, general and administrative expenses” in the consolidated statements of operations.

Quanta is subject to concentrations of credit risk related primarily to its receivable position with customers, which includes amounts related to billed and unbilled accounts receivable and contract assets for services Quanta has performed for customers. Quanta grants credit under normal payment terms, generally without collateral. One customer within the Renewable Energy Infrastructure Solutions segment represented 15% and 13% of Quanta’s consolidated receivable position as of March 31, 2023 and December 31, 2022. Another customer, primarily in Quanta’s Electric Power Infrastructure Solutions and Renewable Energy Infrastructure Solutions segments, represented 11% of Quanta’s consolidated revenues for the three months ended March 31, 2022. No customer represented 10% or more of Quanta’s consolidated revenues for the three months ended March 31, 2023.

Certain contracts allow customers to withhold a small percentage of billings pursuant to retainage provisions, and such amounts are generally due upon completion of the contract and acceptance of the project by the customer. Based on Quanta’s experience in recent years, the majority of these retainage balances are expected to be collected within one year. Retainage balances with expected settlement dates within one year of March 31, 2023 and December 31, 2022 were $392.5 million and $397.6 million, which are included in “Accounts receivable.” Retainage balances with expected settlement dates beyond one year were $187.7 million and $136.2 million as of March 31, 2023 and December 31, 2022 and are included in “Other assets, net.”

Quanta recognizes unbilled receivables for non-fixed price contracts within “Accounts receivable” in certain circumstances, such as when revenues have been earned and recorded but the amount cannot be billed under the terms of the contract until a later date or when amounts arise from routine lags in billing. These balances do not include revenues recognized for work performed under fixed-price contracts and unit-price contracts with more than an insignificant amount of partially

completed units, as these amounts are recorded as “Contract assets.” As of March 31, 2023 and December 31, 2022, unbilled receivables included in “Accounts receivable” were $923.1 million and $823.9 million. The increase in unbilled receivables was primarily due to significant increases in work and certain delays in billing related to certain large customers. Quanta also recognizes unearned revenues for non-fixed price contracts when cash is received prior to recognizing revenues for the related performance obligation. Unearned revenues, which are included in “Accounts payable and accrued expenses,” were $75.2 million and $59.6 million as of March 31, 2023 and December 31, 2022.

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Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

4. SEGMENT INFORMATION:

Quanta reports its results under three reportable segments described below:

•Electric Power Infrastructure Solutions (Electric Power). Quanta’s Electric Power segment provides comprehensive services for the electric power and communications markets.

•Renewable Energy Infrastructure Solutions (Renewable Energy). Quanta’s Renewable Energy segment provides comprehensive infrastructure solutions to customers that are involved in the renewable energy industry.

•Underground Utility and Infrastructure Solutions (Underground and Infrastructure). Quanta’s Underground and Infrastructure segment provides comprehensive infrastructure solutions to customers involved in the transportation, distribution, storage, development and processing of natural gas, oil and other products.

Corporate and Non-allocated Costs include corporate facility costs; non-allocated corporate salaries, benefits and incentive compensation; acquisition and integration costs; non-cash stock-based compensation; amortization related to intangible assets; asset impairment related to goodwill and intangible assets; and change in fair value of contingent consideration liabilities.

The following table sets forth segment revenues and segment operating income (loss) for the three months ended March 31, 2023 and 2022. The following table shows dollars in thousands:

	Three Months Ended March 31,
	2023				2022
Revenues:
Electric Power Infrastructure Solutions	$	2,336,037	52.7	%	$	2,138,697	53.9	%
Renewable Energy Infrastructure Solutions	1,008,300		22.8		875,632		22.1
Underground Utility and Infrastructure Solutions	1,084,489		24.5		951,196		24.0
Consolidated revenues	$	4,428,826	100.0	%	$	3,965,525	100.0	%
Operating income (loss):
Electric Power Infrastructure Solutions (1)	$	215,149	9.2	%	$	203,419	9.5	%
Renewable Energy Infrastructure Solutions	35,656		3.5	%	69,942		8.0	%
Underground Utility and Infrastructure Solutions	61,573		5.7	%	48,175		5.1	%
Corporate and Non-Allocated Costs (2)	(186,518)		(4.2)	%	(204,020)		(5.1)	%
Consolidated operating income	$	125,860	2.8	%	$	117,516	3.0	%

(1)    Includes equity in earnings of integral unconsolidated affiliates of $9.6 million and $15.2 million for the three months ended March 31, 2023 and 2022, primarily related to Quanta’s equity interest in LUMA Energy, LLC (LUMA).

(2)    Includes amortization expense of $72.4 million and $115.8 million and non-cash stock-based compensation of $27.5 million and $23.0 million for the three months ended March 31, 2023 and 2022.

Depreciation Expense Allocation

Separate measures of Quanta’s assets and cash flows by reportable segment, including capital expenditures, are not produced or utilized by management to evaluate segment performance. Quanta’s fixed assets are generally used on an interchangeable basis across its reportable segments. As such, for reporting purposes, total depreciation expense is allocated

each quarter among Quanta’s reportable segments based on the ratio of each reportable segment’s revenue contribution to consolidated revenues. The following table shows dollars in thousands:

	Three Months Ended
	March 31,
	2023		2022
Depreciation:
Electric Power Infrastructure Solutions	$	42,085	$	36,779
Renewable Energy Infrastructure Solutions	10,858		8,233
Underground Utility and Infrastructure Solutions	20,500		20,938
Corporate and Non-Allocated Costs	4,939		5,004
Consolidated depreciation	$	78,382	$	70,954

Foreign Operations

During the three months ended March 31, 2023 and 2022, Quanta derived $762.5 million and $641.6 million of its revenues from foreign operations. Of Quanta’s foreign revenues, 71% and 86% were earned in Canada during the three months ended March 31, 2023 and 2022. In addition, Quanta held property and equipment, net of $293.4 million and $298.0 million in foreign countries, primarily Canada, as of March 31, 2023 and December 31, 2022.

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Acquisitions

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisitions

5. ACQUISITIONS:

The results of operations of acquired businesses have been included in Quanta’s consolidated financial statements since their respective acquisition dates.

In January 2023, Quanta acquired three businesses located in the United States including: a business that provides services related to high-voltage transmission lines, overhead and underground distribution, emergency restoration and industrial and commercial wiring and lighting (primarily included in the Electric Power segment); a business that procures parts, assembles kits for sale, manages logistics and installs solar tracking equipment for utility and development customers (primarily included in the Renewable Energy segment); and a business that provides concrete construction services (primarily included in the Electric Power and Renewable Energy segments). The consideration for these transactions consisted of approximately $463.5 million paid or payable in cash (subject to certain adjustments) and 1,018,946 shares of Quanta common stock, which had a fair value of $123.5 million as of the dates of the acquisitions.

In July 2022, Quanta acquired a business located in the United States that provides construction contracting services to utilities, specializing in trenching and underground pipeline and electrical conduit installation. The consideration for this transaction included $22.3 million paid or payable in cash (subject to certain adjustments). Additionally, the former owners of this business are eligible to receive a potential payment of contingent consideration to the extent the acquired business achieves certain financial performance targets over a five-year post-acquisition period. The results of the acquired business are primarily included in the Electric Power segment.

Purchase Price Allocation

Quanta is finalizing its purchase price allocations related to businesses acquired subsequent to March 31, 2022, and further adjustments to the purchase price allocations may occur, with possible updates primarily related to property and equipment, identifiable intangible assets, tax estimates and the finalization of closing working capital adjustments. The aggregate consideration paid or payable for businesses acquired between March 31, 2022 and March 31, 2023 was allocated to acquired assets and assumed liabilities, which resulted in an allocation of $186.6 million to net tangible assets, $126.1 million to identifiable intangible assets and $299.2 million to goodwill. The following table summarizes the fair value of total consideration transferred or estimated to be transferred and the fair value of assets acquired and liabilities assumed as of their respective acquisition dates as of March 31, 2023 for acquisitions completed in the three months ended March 31, 2023 (in

thousands):

	Three Months Ended
	March 31, 2023
Consideration:
Cash paid or payable	$	463,482
Value of Quanta common stock issued	123,503
Fair value of total consideration transferred or estimated to be transferred	$	586,985
Cash and cash equivalents	$	14,832
Accounts receivable	46,389
Contract assets	195
Inventories	56,960
Prepaid expenses and other current assets	4,392
Property and equipment	146,150
Operating lease assets	14,189
Other assets	4,553
Identifiable intangible assets	113,020
Accounts payable and accrued liabilities	(61,872)
Contract liabilities	(3,071)
Operating lease liabilities, current	(2,552)
Deferred tax liabilities, net	(20,556)
Operating lease liabilities, non-current	(12,242)
Total identifiable net assets	300,387
Goodwill	286,598
Fair value of net assets acquired	$	586,985

As of March 31, 2023, approximately $233.5 million of goodwill is expected to be deductible for income tax purposes related to acquisitions completed in the three months ended March 31, 2023.

The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in the three months ended March 31, 2023 as of the acquisition dates and the related weighted average amortization periods by type (in thousands, except for weighted average amortization periods, which are in years).    

	Three Months Ended
	March 31, 2023
	Estimated Fair Value		Weighted Average Amortization Period in Years
Customer relationships	$	79,640	4.6
Backlog	16,115		0.9
Trade names	12,815		15.0
Non-compete agreements	4,450		5.0
Total intangible assets subject to amortization	$	113,020

The significant estimates used by management in determining the fair values of customer relationship intangible assets include future revenues, discount rates and customer attrition rates. The following table includes the discount rates and

customer attrition rates used to determine the fair value of customer relationship intangible assets for businesses acquired during the three months ended March 31, 2023 as of the respective acquisition dates:

	Three Months Ended
	March 31, 2023
	Range	Weighted Average
Discount rates	15% to 19%	17%
Customer attrition rates	15% to 20%	19%

Contingent Consideration

As described above, certain business acquisitions have contingent consideration liabilities associated with the transactions. The aggregate fair value of these outstanding contingent consideration liabilities and their classification in the accompanying consolidated balance sheets is as follows (in thousands):

	March 31, 2023		December 31, 2022
Accounts payable and accrued expenses	$	—	$	5,000
Insurance and other non-current liabilities	143,517		143,517
Total contingent consideration liabilities	$	143,517	$	148,517

The fair value determinations of contingent consideration liabilities incorporate significant inputs not observable in the market. Accordingly, the level of inputs used for these fair value measurements is Level 3. The following table includes the volatility factors, weighted average costs of capital and discount rates used to determine the fair value of contingent consideration liabilities during the three months ended March 31, 2023:

	Three Months Ended
	March 31, 2023
	Range	Weighted Average
Volatility factors	35.0% to 43.0%	35.2%
Weighted average cost of capital	14.0% to 15.50%	14.0%
Discount rates	4.06% to 6.20%	6.2%

The majority of Quanta’s outstanding contingent consideration liabilities are subject to a maximum payment amount, and the aggregate maximum payment amount of these liabilities totaled $321.7 million as of March 31, 2023. During the three months ended March 31, 2023 and 2022, Quanta settled certain contingent consideration liabilities with cash payments of $5.0 million and $1.6 million.

Pro Forma Results of Operations

The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in the three months ended March 31, 2023 and the year ended December 31, 2022, have been provided for illustrative purposes only and may not be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future (in thousands).

	Three Months Ended
	March 31,
	2023		2022
Revenues	$	4,428,826	$	4,091,762
Net income attributable to common stock	$	95,046	$	84,567

The pro forma combined results of operations for the three months ended March 31, 2023 and 2022 were prepared by adjusting the historical results of Quanta to include the historical results of the businesses acquired in 2023 as if such acquisitions had occurred January 1, 2022. The pro forma combined results of operations for the three months ended March 31, 2022 were prepared by adjusting the historical results of Quanta to include the historical results of the business acquired in 2022 as if such acquisition had occurred January 1, 2021. These pro forma combined historical results were adjusted for the following: a reduction of interest and other financing expenses as a result of the repayment of outstanding indebtedness of the

acquired businesses; an increase in interest and other financing expenses as a result of the cash consideration paid; an increase in amortization expense due to the intangible assets recorded; elimination of inter-company sales; and changes in depreciation expense to adjust acquired property and equipment to the acquisition date fair value and to conform with Quanta’s accounting policies. The pro forma combined results of operations do not include any adjustments to eliminate the impact of acquisition-related costs incurred by Quanta or any cost savings or other synergies that resulted or may result from the acquisitions.

Results of Operations

Revenues of $93.5 million and a loss before income taxes of $16.1 million, which includes $8.6 million of amortization expense and $17.8 million of acquisition-related costs, related to the acquisitions completed in 2023 are included in Quanta’s condensed consolidated results of operations for the three months ended March 31, 2023.

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Investments in Affiliates and Other Entities

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investments in Affiliates and Other Entities

6. INVESTMENTS IN AFFILIATES AND OTHER ENTITIES:

Equity Investments

The following table presents Quanta’s equity investments by type (in thousands):

	March 31, 2023		December 31, 2022
Equity method investments - integral unconsolidated affiliates	$	98,762	$	101,251
Equity method investments - non-integral unconsolidated affiliates	29,088		55,833
Marketable equity securities	—		—
Non-marketable equity securities	54,152		54,134
Total equity investments	$	182,002	$	211,218

Equity Method Investments

During the three months ended December 31, 2022, Quanta entered into an agreement to sell one of its non-integral equity method investments. The transaction was subject to certain customary closing conditions that were satisfied in early 2023. As a result, a $25.9 million gain was recognized in the fourth quarter of 2022, $10.4 million of which is attributable to non-controlling interests. During the three months ended March 31, 2023, Quanta received cash of $56.6 million related to the sale of this investment, $8.7 million of which was distributed to non-controlling interests.

As of March 31, 2023 and December 31, 2022, Quanta had receivables of $21.3 million and $96.9 million from its integral affiliates and payables of $8.7 million and $9.3 million to its integral affiliates. During the three months ended March 31, 2023 and 2022, Quanta recognized revenues of $48.3 million and $25.1 million from services provided to its integral affiliates, primarily for services provided to LUMA at cost. In addition, during the three months ended March 31, 2023 and 2022, Quanta recognized costs of sales of $12.0 million and $50.4 million for services provided by other integral affiliates.

Total equity in earnings from integral unconsolidated affiliates were $9.6 million and $15.2 million for the three months ended March 31, 2023 and 2022. Total equity in earnings from non-integral unconsolidated affiliates were $1.6 million and $5.3 million for the three months ended March 31, 2023 and 2022 and included in “Other income (expense), net” in the accompanying condensed consolidated statements of income. As of March 31, 2023, retained earnings included $19.6 million related to the undistributed earnings of unconsolidated affiliates.

Marketable and Non-Marketable Equity Securities

As of March 31, 2023 and December 31, 2022, the fair value of Quanta’s investment in equity securities of Starry Group Holdings, Inc. (Starry) was zero and the unrealized loss related to these securities was $91.5 million.

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Per Share Information

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Per Share Information

7. PER SHARE INFORMATION:

The amounts used to compute basic and diluted earnings per share attributable to common stock consisted of the following (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Amounts attributable to common stock:
Net income attributable to common stock	$	95,046	$	84,641
Weighted average shares:
Weighted average shares outstanding for basic earnings per share attributable to common stock	144,467		143,541
Effect of dilutive unvested non-participating stock-based awards	4,194		4,541
Weighted average shares outstanding for diluted earnings per share attributable to common stock	148,661		148,082

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Debt Obligations

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt Obligations

8. DEBT OBLIGATIONS:

Quanta’s long-term debt obligations consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
0.950% Senior Notes due October 2024	$	500,000	$	500,000
2.900% Senior Notes due October 2030	1,000,000		1,000,000
2.350% Senior Notes due January 2032	500,000		500,000
3.050% Senior Notes due October 2041	500,000		500,000
Borrowings under senior credit facility (including Term Loan)	942,100		786,910
Borrowings under commercial paper program	598,750		373,000
Other long-term debt	92,268		92,907
Finance leases	16,577		3,542
Unamortized discount and financing costs	(25,596)		(26,432)
Total long-term debt obligations	4,124,099		3,729,927
Less — Current maturities of long-term debt	39,691		37,495
Total long-term debt obligations, net of current maturities	$	4,084,408	$	3,692,432

Senior Notes

The interest amounts due on Quanta’s senior notes on each payment date are set forth below (dollars in thousands):

Title of the Notes	Interest Amount		Payment Dates	Commencement Date
0.950% Senior Notes due October 2024	$	2,375	April 1 and October 1	April 1, 2022
2.900% Senior Notes due October 2030	$	14,500	April 1 and October 1	April 1, 2021
2.350% Senior Notes due January 2032	$	5,875	January 15 and July 15	July 15, 2022
3.050% Senior Notes due October 2041	$	7,625	April 1 and October 1	April 1, 2022

The fair value of Quanta’s senior notes was $2.08 billion as of March 31, 2023, compared to a carrying value of $2.48 billion net of unamortized bond discount, underwriting discounts and deferred financing costs of $23.0 million. The fair value of the senior notes is based on the quoted market prices for the same issue, and the senior notes are categorized as Level 1 liabilities.

Senior Credit Facility

The credit agreement for Quanta’s senior credit facility (as amended, the credit agreement) provides for a $750.0 million term loan facility and aggregate revolving commitments of $2.64 billion, with a maturity date of October 8, 2026. Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands):

	Three Months Ended
	March 31,
	2023			2022
Maximum amount outstanding	$	956,308		$	1,451,597
Average daily amount outstanding	$	859,270		$	1,256,150
Weighted-average interest rate	5.99		%	1.71		%

As of March 31, 2023, Quanta was in compliance with all of the financial covenants under the credit agreement.

Term Loan. As of March 31, 2023, Quanta had $745.3 million outstanding under its term loan facility. The carrying amount of the term loan under Quanta’s senior credit facility approximates fair value due to its variable interest rate.

Revolving Loans. As of March 31, 2023, Quanta had $196.8 million of outstanding revolving loans under the senior credit facility, all of which were denominated in Canadian dollars. The carrying amounts of the revolving borrowings under Quanta’s senior credit facility approximate fair value, as all revolving borrowings have a variable interest rate.

As of March 31, 2023, Quanta also had $272.2 million of letters of credit issued under the senior credit facility, of which $175.3 million were denominated in U.S. dollars and $96.9 million were denominated in currencies other than the U.S. dollar, primarily Australian and Canadian dollars. Additionally, available commitments for revolving loans under the senior credit facility must be maintained in order to provide credit support for notes issued under Quanta’s commercial paper program, and therefore such notes effectively reduce the available borrowing capacity under the senior credit facility.

As of March 31, 2023, $1.57 billion remained available under the senior credit facility for new revolving loans, letters of credit and support of the commercial paper program.

Deferred Financing Costs. As of March 31, 2023 and December 31, 2022, capitalized deferred financing costs, net of accumulated amortization, related to Quanta’s revolving loans under its senior credit facility and commercial paper program were $7.8 million and $8.3 million and are included in “Other assets, net” in the accompanying condensed consolidated balance sheets. Amortization of deferred financing costs for all debt instruments and the discount related to notes issued under the commercial paper program are included in interest and other financing expenses and were, in the aggregate, $8.1 million and $1.5 million for the three months ended March 31, 2023 and 2022.

Commercial Paper Program

Quanta had $598.8 million of outstanding notes under its unsecured commercial paper program as of March 31, 2023, with a weighted average interest rate of 5.9%. During the three months ended March 31, 2023, under this program, Quanta had maximum borrowings outstanding of $747.7 million, weighted average borrowings outstanding of $494.6 million, a weighted average interest rate of 5.4% and a weighted average maturity of 14 days. The carrying amounts of the notes issued under Quanta’s commercial paper program approximate fair value, as all notes currently have a short maturity.

Additional Letters of Credit

As of March 31, 2023 Quanta had $190.1 million of surety-backed letters of credit issued outside of its senior credit facility, which were denominated in U.S. dollars.

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Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

9. LEASES:

Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. The components of lease costs in the accompanying condensed consolidated statements of operations are as follows (in thousands):

		Three Months Ended
		March 31,
Lease cost	Classification	2023		2022
Finance lease cost:
Amortization of lease assets	Depreciation (1)	$	911	$	440
Interest on lease liabilities	Interest and other financing expenses	208		27
Operating lease cost	Cost of services and Selling, general and administrative expenses	23,223		24,877
Short-term and variable lease cost (2)	Cost of services and Selling, general and administrative expenses	238,078		219,299
Total lease cost		$	262,420	$	244,643

(1)    Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of operations.

(2)    Short-term lease cost includes both leases and rentals with initial terms of one year or less. Variable lease cost is insignificant.

Related party lease expense was $3.9 million and $3.6 million for the three months ended March 31, 2023 and 2022.

Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands):

	As of March 31, 2023
	Operating Leases		Finance Leases		Lease Financing Transactions		Total
Remainder of 2023	$	65,507	$	1,159	$	12,870	$	79,536
2024	70,456		3,950		14,345		88,751
2025	53,957		3,845		12,577		70,379
2026	39,185		3,628		13,111		55,924
2027	24,428		3,229		10,491		38,148
Thereafter	27,814		852		20,190		48,856
Total future minimum payments related to operating leases, finance leases and lease financing transactions	281,347		16,663		83,584		381,594
Less imputed interest	(23,421)		(86)		—		(23,507)
Total operating lease, finance lease and lease financing transaction liabilities	$	257,926	$	16,577	$	83,584	$	358,087

Future minimum lease payments for short-term leases were $21.4 million as of March 31, 2023.

The weighted average remaining lease terms and discount rates were as follows:

	As of March 31, 2023
Weighted average remaining lease term (in years):
Operating leases	4.32
Finance leases	5.23
Weighted average discount rate:
Operating leases	3.8	%
Finance leases	5.0	%

Quanta has also guaranteed the residual value under certain of its equipment operating leases and real estate finance leases, agreeing to pay any difference between the residual value and the fair market value of the underlying asset at the date of

lease termination. The fair value of the assets at the time of lease termination generally approximates or exceeds the residual value guarantees, and therefore such guarantees are not expected to result in significant payments.

Leases

9. LEASES:

Quanta primarily leases land, buildings, vehicles, construction equipment and office equipment. The components of lease costs in the accompanying condensed consolidated statements of operations are as follows (in thousands):

		Three Months Ended
		March 31,
Lease cost	Classification	2023		2022
Finance lease cost:
Amortization of lease assets	Depreciation (1)	$	911	$	440
Interest on lease liabilities	Interest and other financing expenses	208		27
Operating lease cost	Cost of services and Selling, general and administrative expenses	23,223		24,877
Short-term and variable lease cost (2)	Cost of services and Selling, general and administrative expenses	238,078		219,299
Total lease cost		$	262,420	$	244,643

(1)    Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of operations.

(2)    Short-term lease cost includes both leases and rentals with initial terms of one year or less. Variable lease cost is insignificant.

Related party lease expense was $3.9 million and $3.6 million for the three months ended March 31, 2023 and 2022.

Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands):

	As of March 31, 2023
	Operating Leases		Finance Leases		Lease Financing Transactions		Total
Remainder of 2023	$	65,507	$	1,159	$	12,870	$	79,536
2024	70,456		3,950		14,345		88,751
2025	53,957		3,845		12,577		70,379
2026	39,185		3,628		13,111		55,924
2027	24,428		3,229		10,491		38,148
Thereafter	27,814		852		20,190		48,856
Total future minimum payments related to operating leases, finance leases and lease financing transactions	281,347		16,663		83,584		381,594
Less imputed interest	(23,421)		(86)		—		(23,507)
Total operating lease, finance lease and lease financing transaction liabilities	$	257,926	$	16,577	$	83,584	$	358,087

Future minimum lease payments for short-term leases were $21.4 million as of March 31, 2023.

The weighted average remaining lease terms and discount rates were as follows:

	As of March 31, 2023
Weighted average remaining lease term (in years):
Operating leases	4.32
Finance leases	5.23
Weighted average discount rate:
Operating leases	3.8	%
Finance leases	5.0	%

Quanta has also guaranteed the residual value under certain of its equipment operating leases and real estate finance leases, agreeing to pay any difference between the residual value and the fair market value of the underlying asset at the date of

lease termination. The fair value of the assets at the time of lease termination generally approximates or exceeds the residual value guarantees, and therefore such guarantees are not expected to result in significant payments.

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Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

10. INCOME TAXES:

Quanta’s effective tax rates for the three months ended March 31, 2023 and 2022 were a benefit of 3.7% and a provision of 7.2%. The tax rates for the three months ended March 31, 2023 and 2022 were favorably impacted by the recognition of $32.0 million and $20.3 million of benefits that resulted from equity incentive awards vesting at a higher fair market value than their grant date fair value.

Quanta regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain, including in connection with changes in tax laws. The estimation of required valuation allowances includes estimates of future taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Quanta considers projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income differs from these estimates, Quanta may not realize deferred tax assets to the extent estimated. During 2022, Quanta recorded a valuation allowance against unrealized capital losses related to its minority investment in Starry. During the three months ended March 31, 2023, Starry filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code, as amended. Upon resolution of the bankruptcy proceedings, a portion of Quanta’s unrealized losses may become deductible for income tax purposes.

As of March 31, 2023, the total amount of unrecognized tax benefits relating to uncertain tax positions was $44.1 million, a net increase of $2.5 million from December 31, 2022, which primarily resulted from a $2.5 million increase related to positions expected to be taken in 2023. Quanta’s consolidated federal income tax returns for tax years 2017 through 2021 remain open to examination by the IRS, as the applicable statute of limitations periods have not yet expired. Additionally, various state and foreign tax returns filed by Quanta and certain subsidiaries for multiple periods remain under examination by various U.S. state and foreign tax authorities. Quanta does not consider any state in which it does business to be a major tax jurisdiction. Quanta believes it is reasonably possible that within the next 12 months unrecognized tax benefits may decrease by up to $12.1 million as a result of settlement of these examinations or as a result of the expiration of certain statute of limitations periods.

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Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Equity

11. EQUITY:

Stock Repurchases

Quanta repurchased the following shares of common stock in the open market under its stock repurchase program (in thousands):

Quarter ended:	Shares	Amount
March 31, 2023	—	$	—
December 31, 2022	87	$	11,403
September 30, 2022	158	$	21,033
June 30, 2022	731	$	84,884
March 31, 2022	85	$	10,426

Quanta’s policy is to record a stock repurchase as of the trade date of the transaction; however, the payment of cash related to the repurchase is made on the settlement date of the transaction. During the three months ended March 31, 2022, cash payments related to stock repurchases were $9.5 million. Repurchases may be implemented through open market repurchases or privately negotiated transactions, at management’s discretion, based on market and business conditions, applicable contractual and legal requirements, including restrictions under Quanta’s senior credit facility, and other factors. Quanta is not obligated to acquire any specific amount of common stock, and the repurchase program may be modified or terminated by Quanta’s Board of Directors at any time at its sole discretion and without notice.

Dividends

Quanta declared and paid the following cash dividends and cash dividend equivalents during 2022 and the first three months of 2023 (in thousands, except per share amounts):

Declaration	Record	Payment	Dividend		Dividends
Date	Date	Date	Per Share		Declared
March 29, 2023	April 10, 2023	April 18, 2023	$	0.08	$	12,100
December 13, 2022	January 3, 2023	January 13, 2023	$	0.08	$	11,756
August 31, 2022	October 3, 2022	October 14, 2022	$	0.07	$	10,322
May 27, 2022	July 1, 2022	July 15, 2022	$	0.07	$	10,283
March 30, 2022	April 11, 2022	April 18, 2022	$	0.07	$	10,459

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

12. STOCK-BASED COMPENSATION:

Restricted Stock Units (RSUs) to be Settled in Common Stock

A summary of the activity for RSUs to be settled in common stock for the three months ended March 31, 2023 and 2022 is as follows (RSUs in thousands):

	2023		2022
	RSUs	Weighted Average Grant Date Fair Value (Per Unit)	RSUs	Weighted Average Grant Date Fair Value (Per Unit)
Unvested at January 1	3,263	$78.74	3,880	$61.64
Granted	626	$158.82	768	$110.24
Vested	(1,120)	$65.50	(1,177)	$48.50
Forfeited	(75)	$107.63	(38)	$63.66
Unvested at March 31	2,694	$102.59	3,433	$77.09

The approximate fair value of RSUs that vested during the three months ended March 31, 2023 and 2022 was $176.1 million and $132.9 million.

During the three months ended March 31, 2023 and 2022, Quanta recognized $22.6 million and $19.5 million of non-cash stock compensation expense related to RSUs to be settled in common stock. As of March 31, 2023, there was $204.0 million of total unrecognized compensation expense related to unvested RSUs to be settled in common stock granted to both employees and non-employees. This cost is expected to be recognized over a weighted average period of 3.54 years.

Performance Stock Units (PSUs) to be Settled in Common Stock

A summary of the activity for PSUs to be settled in common stock for the three months ended March 31, 2023 and 2022 is as follows (PSUs in thousands):

	2023		2022
	PSUs	Weighted Average Grant Date Fair Value (Per Unit)	PSUs	Weighted Average Grant Date Fair Value (Per Unit)
Unvested at January 1	733	$65.39	931	$47.27
Granted	177	$174.50	148	$119.04
Vested	(413)	$35.12	(334)	$40.15
Unvested at March 31	497	$129.38	745	$64.69

The Monte Carlo simulation valuation methodology applied the following key inputs:

	2023		2022
Valuation date price based on March 9, 2023 and March 2, 2022 closing stock prices of Quanta common stock	$160.55		$110.24
Historical volatility	35	%	39	%
Risk-free interest rate	4.62	%	1.64	%
Term in years	2.81		2.83

During the three months ended March 31, 2023 and 2022, Quanta recognized $4.9 million and $3.5 million of non-cash stock compensation expense related to PSUs to be settled in common stock. As of March 31, 2023, there was an estimated $44.7 million of total unrecognized compensation expense related to unearned and unvested PSUs. This amount is based on forecasted attainment of performance metrics and estimated forfeitures of unearned and unvested PSUs. The compensation expense related to outstanding PSUs can vary from period to period based on changes in forecasted achievement of established performance goals and the total number of shares of common stock that Quanta anticipates will be issued upon vesting of such PSUs. This cost is expected to be recognized over a weighted average period of 2.16 years.

During each of the three months ended March 31, 2023 and 2022, 0.7 million shares of common stock were earned and either issued or deferred for future issuance under Quanta’s deferred compensation plans in connection with PSUs. The approximate fair values of PSUs earned during the three months ended March 31, 2023 and 2022 were $115.5 million and $72.4 million.

RSUs to be Settled in Cash

During the three months ended March 31, 2023 and 2022, compensation expense related to RSUs to be settled in cash was $4.9 million and $3.7 million. RSUs that are anticipated to be settled in cash are not included in the calculation of weighted average shares outstanding for earnings per share, and the estimated earned value of such RSUs is calculated at the end of each reporting period based on the market value of Quanta’s common stock and is classified as a liability. Quanta paid $9.7 million and $8.6 million to settle liabilities related to cash-settled RSUs in the three months ended March 31, 2023 and 2022. Accrued liabilities for the estimated earned value of outstanding RSUs to be settled in cash were $6.9 million and $11.0 million as of March 31, 2023 and December 31, 2022.

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Employee Benefit Plans

3 Months Ended

Mar. 31, 2023

Postemployment Benefits [Abstract]

Employee Benefit Plans

13. EMPLOYEE BENEFIT PLANS:

Deferred Compensation Plans

Quanta maintains non-qualified deferred compensation plans under which eligible directors and key employees may defer their receipt of certain cash compensation and/or the settlement of certain stock-based awards. As of March 31, 2023 and December 31, 2022, the deferred compensation liability under Quanta’s deferred compensation plans, including amounts contributed by Quanta, was $76.5 million and $67.4 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 assets are recorded at their cash surrender value, which is considered their fair market value, and as of March 31, 2023 and December 31, 2022, the fair market values were $72.4 million and $64.0 million and were included in “Other assets, net” in the accompanying condensed consolidated balance sheets. The level of inputs for these fair value measurements is Level 2.

Changes in the fair market value of Quanta’s COLI assets and deferred compensation liabilities largely offset and are recorded in the accompanying statements of operations as follows (in thousands):

		Three Months Ended
		March 31,
Classification	Change in fair market value of	2023		2022
(Loss) gain included in Selling, general and administrative expenses	Deferred compensation liabilities	$	(4,076)	$	3,927
Other income (expense), net	COLI assets	$	3,146	$	(4,140)

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

14. COMMITMENTS AND CONTINGENCIES:

Legal Proceedings

Quanta is from time to time party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, property damage, breach of contract, negligence or gross negligence, environmental liabilities, wage and hour and other employment-related damages, punitive damages, consequential damages, civil penalties or other losses, or injunctive or declaratory relief. With respect to all such lawsuits, claims and proceedings, Quanta records a reserve when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In addition, Quanta discloses matters for which management believes a material loss is at least reasonably possible.

The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. In all instances, management has assessed the matter based on current information and made a judgment concerning its potential outcome, giving due consideration to the nature of the claim, the amount and nature of damages sought and the probability of success and taking into account, among other things, negotiations with claimants, discovery, settlements and payments, judicial rulings, arbitration and mediation decisions, advice of internal and external legal counsel, and other information and events pertaining to a particular matter. Costs incurred for litigation are expensed as incurred. Except as otherwise stated below, none of these proceedings are expected to have a material adverse effect on Quanta’s consolidated financial position, results of operations or cash flows. However, management’s judgment may prove materially inaccurate, and such judgment is made subject to the known uncertainties of litigation.

Peru Project Dispute

In 2015, Redes Andinas de Comunicaciones S.R.L. (Redes), a majority-owned subsidiary of Quanta, entered into two separate contracts with an agency of the Peruvian Ministry of Transportation and Communications (MTC), currently Programa Nacional de Telecomunicaciones (PRONATEL), as successor to Fondo de Inversion en Telecomunicaciones (FITEL), pursuant to which Redes would design, construct and operate certain telecommunication networks in rural regions of Peru. The aggregate consideration provided for in the contracts was approximately $248 million, consisting of approximately $151 million to be paid during the construction period and approximately $97 million to be paid during a 10-year post-construction operation and maintenance period. At the beginning of the project, FITEL made advance payments totaling approximately $87 million to Redes, which were secured by two on-demand advance payment bonds posted by Redes to guarantee proper use of the payments in the execution of the project. Redes also provided two on-demand performance bonds in the aggregate amount of $25 million to secure performance of its obligations under the contracts.

During the construction phase, the project experienced numerous challenges and delays, primarily related to issues which Quanta believes were outside of the control of and not attributable to Redes, including, among others, weather-related issues, local opposition to the project, permitting delays, the inability to acquire clear title to certain required parcels of land and other delays which Quanta believes were attributable to FITEL/PRONATEL. In response to various of these challenges and delays, Redes requested and received multiple extensions to certain contractual deadlines and relief from related liquidated damages. However, in April 2019, PRONATEL provided notice to Redes claiming that Redes was in default under the contracts due to the delays and that PRONATEL would terminate the contracts if the alleged defaults were not cured. Redes responded by claiming that it was not in default, as the delays were due to events not attributable to Redes, and therefore PRONATEL was not entitled to terminate the contracts. PRONATEL subsequently terminated the contracts for alleged cause prior to completion of Redes’ scope of work, exercised the on-demand performance bonds and advance payment bonds against Redes, and indicated its intention to claim damages, including liquidated damages under the contracts. As of the date of the contract terminations, Redes had incurred costs of approximately $157 million related to the design and construction of the project and had received approximately $100 million of payments (inclusive of the approximately $87 million advance payments).

In May 2019, Redes filed for arbitration before the Court of International Arbitration of the International Chamber of Commerce (ICC) against PRONATEL and the MTC. In the arbitration, Redes claimed that PRONATEL: breached and wrongfully terminated the contracts; wrongfully executed the advance payment bonds and the performance bonds; and was not entitled to the alleged amount of liquidated damages, and sought compensation for various damages arising from PRONATEL’s actions in the initially claimed amount of approximately $190 million. In August 2022, Redes received the decision of the arbitration tribunal, which unanimously found in favor of Redes in connection with its claims and ordered, among other things, (i) repayment of the amounts collected by PRONATEL under the advance payment bonds and the performance bonds; (ii) payment of amounts owed for work completed by Redes under the contracts; (iii) payment of lost income in connection with Redes’ future operation and maintenance of the networks; and (iv) payment of other related costs

and damages to Redes as a result of the breach and improper termination of the contracts (including costs related to the execution of the bonds, costs related to the transfer of the networks and legal and expert fees). Accordingly, the arbitration tribunal awarded Redes approximately $177 million. In addition, per the terms of the arbitration decision, interest will accrue on the amount owed up to the date of payment. The decision of the arbitration tribunal is final, with limited grounds on which PRONATEL and the MTC may seek to annul the decision in Peruvian courts. In December 2022, Redes filed an enforcement proceeding with respect to each project contract to secure recovery of the arbitration award, and PRONATEL and the MTC filed an annulment proceeding with respect to each project contract. The enforcement and annulment proceedings are all pending within different commercial courts in Lima, Peru. In April 2023, Redes received a favorable ruling in one annulment proceeding rejecting the grounds for annulment, and decisions with respect to the other annulment proceeding and the enforcement proceedings are expected later in 2023.

Additionally, in December 2022, following the favorable arbitration ruling, Quanta received $100.5 million pursuant to coverage under an insurance policy for the improper collection by PRONATEL and the MTC of the advance payment and performance bonds, and in January 2023 Quanta received $6.8 million pursuant to coverage under an insurance policy for nonpayment by PRONATEL and the MTC of amounts owed for work completed by Redes. Quanta is continuing to pursue collection of the ICC arbitration award and any amount collected would result in repayment of an equal amount to the insurers up to the amount received from the insurers. As a result, $107.2 million is included in “Insurance and other non-current liabilities” in the accompanying consolidated balance sheet as of March 31, 2023.

Quanta also reserves the right to seek full compensation for the loss of its investment under applicable legal regimes, including investment treaties and customary international law, as well as to seek resolution through direct discussions with PRONATEL or the MTC. In connection with these rights, in May 2020 Quanta’s Dutch subsidiary delivered to the Peruvian government an official notice of dispute arising from the termination of the contracts and related acts by PRONATEL (which are attributable to Peru) under the Agreement on the Encouragement and Reciprocal Protection of Investments between the Kingdom of the Netherlands and the Republic of Peru (Investment Treaty). The Investment Treaty protects Quanta’s subsidiary’s indirect ownership stake in Redes and the project, and provides for rights and remedies distinct from the ICC arbitration. In December 2020, Quanta’s Dutch subsidiary filed a request for the institution of an arbitration proceeding against Peru with the International Centre for Settlement of Investment Disputes (ICSID) related to Peru’s breach of the Investment Treaty, which was registered by ICSID in January 2021. In the ICSID arbitration, Quanta’s Dutch subsidiary claims, without limitation, that Peru: (i) treated the subsidiary’s investment in Redes and the project unfairly and inequitably; and (ii) effectively expropriated the subsidiary’s investment in Redes and the project. In addition, Quanta’s Dutch subsidiary is seeking full compensation for all damages arising from Peru’s actions, including but not limited to (i) the fair market value of the investment and/or lost profits; (ii) attorneys’ fees and arbitration costs; (iii) other related costs and damages and (iv) pre- and post-award interest. The ICSID arbitration hearing is currently scheduled to occur in June 2023.

Quanta believes Redes is entitled to all amounts awarded by the ICC arbitration tribunal, and that its Dutch subsidiary is entitled to other amounts associated with the pending ICSID arbitration proceeding. Quanta and Redes intend to vigorously pursue recovery of the amounts awarded by the ICC arbitration tribunal and take additional legal actions deemed necessary to enforce the ICC arbitration decision. However, due to the inherent uncertainty involved with, among other things, the annulment and enforcement proceedings, the ultimate timing and conclusion with respect to collection of the amount of the ICC arbitration award remains unknown.

As a result of the contract terminations and the inherent uncertainty involved in arbitration proceedings and recovery of amounts owed, during the three months ended June 30, 2019, Quanta recorded a charge to earnings of $79.2 million, which included a reduction of previously recognized earnings on the project, a reserve against a portion of the project costs incurred through the project termination date, an accrual for a portion of the alleged liquidated damages, and the estimated costs to complete the project turnover and close out the project. Quanta also initially recorded a contract receivable of approximately $120 million related to the project during the three months ended June 30, 2019, which includes the amounts collected by PRONATEL through exercise of the advance payment bonds and performance bonds, and that receivable was not changed as of March 31, 2023 and is included in “Other assets, net” in the accompanying condensed consolidated balance sheet. After considering, as discussed above, that the ultimate timing and conclusion with respect to collection of the ICC arbitration award remains unknown, Quanta has not recognized a gain in the current period. To the extent amounts in excess of the current receivable are determined to be realizable, a gain would be recorded in the period such determination is made. However, if Quanta is ultimately not successful with respect to collection of the ICC arbitration award, through annulment or otherwise, or with respect to its claims in the pending ICSID arbitration proceeding, this matter could result in an additional significant loss that could have a material adverse effect on Quanta’s consolidated results of operations and cash flows.

Lorenzo Benton v. Telecom Network Specialists, Inc., et al.

In June 2006, plaintiff Lorenzo Benton filed a class action complaint in the Superior Court of California, County of Los Angeles, alleging various wage and hour violations against Telecom Network Specialists (TNS), a former subsidiary of Quanta. Quanta retained liability associated with this matter pursuant to the terms of Quanta’s sale of TNS in December 2012. Benton represents a class of workers that includes all persons who worked on certain TNS projects, including individuals that TNS retained through numerous staffing agencies. The plaintiff class in this matter is seeking damages for unpaid wages, penalties associated with the failure to provide meal and rest periods and overtime wages, interest and attorneys’ fees. In January 2017, the trial court granted a summary judgment motion filed by the plaintiff class and found that TNS was a joint employer of the class members and that it failed to provide adequate meal and rest breaks and failed to pay overtime wages. During 2019 and 2020, the parties filed additional summary judgment and other motions, and a bench trial on liability and damages was held. Liability and damages have been determined by the trial court, with the amount of liability for TNS, including interest through the date of the trial court’s orders, determined to be approximately $9.5 million. Separately, in 2022, the court issued a final ruling awarding attorneys’ fees and costs to plaintiffs in the amount of approximately $17.3 million. Quanta continues to contest its liability and the damages calculations asserted by the plaintiff class in this matter and believes the court’s decisions on these matters are not supported by controlling law and that attorneys’ fees would only be recoverable by the plaintiff class in the event Quanta’s appeal of the trial court’s rulings on liability and damages is unsuccessful.

Additionally, in November 2007, TNS filed cross complaints for indemnity and breach of contract against the staffing agencies, which employed many of the individuals in question. In December 2012, the trial court heard cross-motions for summary judgment filed by TNS and the staffing agencies pertaining to TNS’s demand for indemnity. The court denied TNS’s motion and granted the motions filed by the staffing agencies; however, the California Appellate Court reversed the trial court’s decision in part and instructed the trial court to reconsider its ruling. In February 2017, the court denied a new motion for summary judgment filed by the staffing companies and has since stated that the staffing companies would be liable to TNS for any damages owed to the class members that the staffing companies employed. However, Quanta currently believes that, due to solvency issues, any contribution from the staffing companies may not be substantial.

The final amount of liability and attorneys’ fees, if any, payable in connection with this matter remains the subject of pending litigation and will ultimately depend on various factors, including the outcome of the parties’ appeals of the trial court’s rulings on liability, damages, and attorneys’ fees and costs, and the solvency of the staffing agencies. Based on review and analysis of the trial court’s rulings on liability, Quanta does not believe, at this time, that it is probable this matter will result in a material loss. However, if Quanta is unsuccessful in this litigation and the staffing agencies are unable to fund damages owed to class members, based on rulings issued by the trial court, Quanta believes the range of reasonably possible loss to Quanta upon final resolution of this matter could be up to approximately $26.8 million, plus any additional attorneys’ fees, interest, and expenses awarded to the plaintiff class.

Hallen Acquisition Assumed Liability

In August 2019, in connection with the acquisition of The Hallen Construction Co., Inc. (Hallen), Quanta assumed certain contingent liabilities associated with a March 2014 natural gas-fed explosion and fire in the Manhattan borough of New York City, New York. The incident resulted in, among other things, loss of life, personal injury and the destruction of two buildings and other property damage. After investigation, the National Transportation Safety Board determined that the probable cause of the incident was the failure of certain natural gas infrastructure installed by Consolidated Edison, Inc. (Con Ed) and the failure of certain sewer infrastructure maintained by the City of New York. Pursuant to a contract with Con Ed, Hallen had performed certain work related to such natural gas infrastructure and agreed to indemnify Con Ed for certain claims, liabilities and costs associated with its work. Numerous lawsuits are pending in New York state courts related to the incident, which generally name Con Ed, the City of New York and Hallen as defendants. These lawsuits are at various stages and generally seek unspecified damages and, in some cases, punitive damages, for wrongful death, personal injury, property damage and business interruption.

Hallen’s liabilities associated with this matter are expected to be covered under applicable insurance policies or contractual remedies negotiated by Quanta with the former owners of Hallen. When a loss becomes probable and estimable, Quanta expects to record an accrual of the estimated liability, offset by a receivable in the same amount related to such insurance coverage and contractual remedies. As of March 31, 2023, Quanta had not recorded an accrual related to this matter, as the ultimate amount of liability in connection with this matter remains subject to uncertainties associated with pending litigation, including, among other things, the likelihood and potential amount of damages that could be asserted or awarded. While Quanta believes the liabilities associated with this matter will not exceed the amount of available insurance coverage and

contractual remedies, this matter could result in a loss that is in excess of, or not covered by, such remedies, which could have a material adverse effect on Quanta’s consolidated financial condition, results of operations and cash flows.

Silverado Wildfire Matter

During 2022 and 2023, two of Quanta’s subsidiaries received tenders of defense and demands for preservation of evidence from Southern California Edison Company (SCE) related to lawsuits filed from April 2021 through January 2023 against SCE and T-Mobile USA, Inc. (T-Mobile) in the Superior Court of California, County of Orange. The lawsuits generally assert property damage and related claims on behalf of certain individuals and subrogation claims on behalf of insurers relating to damages caused by a wildfire that began in October 2020 in Orange County, California (the Silverado Fire) and that is purported to have damaged approximately 13,000 acres. The lawsuits allege the Silverado Fire originated from utility poles in the area, generally claiming that each defendant failed to adequately maintain, inspect, repair or replace its overhead facilities, equipment and utility poles and remove vegetation in the vicinity; that the utility poles were overloaded with equipment from shared usage; and that SCE failed to de-energize its facilities during red flag warnings for a Santa Ana wind event. The lawsuits allege the Silverado Fire started when SCE and T-Mobile equipment contacted each other and note the Orange County Fire Department is investigating whether a T-Mobile lashing wire contacted an SCE overhead primary conductor in high winds. T-Mobile has filed cross-complaints against SCE alleging, among other things, that the ignition site of the Silverado Fire encompassed two utility poles replaced by SCE or a third party engaged by SCE, and that certain equipment, including T-Mobile’s lashing wire, was not sufficiently re-secured after the utility pole replacements. One of Quanta’s subsidiaries performed planning and other services related to the two utility poles, and another Quanta subsidiary replaced the utility poles and reattached the electrical and telecommunication equipment to the new utility poles in March 2019, approximately 19 months before the Silverado Fire. Pursuant to the general terms of a master services agreement and a master consulting services agreement between the Quanta subsidiaries and SCE, the subsidiaries agreed to defend and indemnify SCE against certain claims arising with respect to performance or nonperformance under the agreements. The SCE tender letters seek contractual indemnification and defense from Quanta’s subsidiaries for the claims asserted against SCE in the lawsuits and the T-Mobile cross-complaints.

Quanta’s subsidiaries intend to vigorously defend against the lawsuits, the T-Mobile cross-complaints and any other claims asserted in connection with the Silverado Fire. Quanta will continue to review additional information in connection with this matter as litigation and resolution efforts progress, and any such information may potentially allow Quanta to determine an estimate of potential loss, if any. As of March 31, 2023, Quanta had not recorded an accrual with respect to this matter, and Quanta is currently unable to reasonably estimate a range of reasonably possible loss, if any, because there are a number of unknown facts and legal considerations that may impact the amount of any potential liability. Quanta also believes that to the extent its subsidiaries are determined to be liable for any damages resulting from this matter, its insurance would be applied to any such liabilities over its deductible amount and its insurance coverage would be adequate to cover such potential liabilities. However, the ultimate amount of any potential liability and insurance coverage in connection with this matter remains subject to uncertainties associated with pending and potential future litigation.

Insurance

Quanta is insured for, among other things, employer’s liability, workers’ compensation, auto liability, aviation and general liability claims. Quanta manages and maintains a portion of its casualty risk indirectly through its wholly-owned captive insurance company, which insures all claims up to the amount of the applicable deductible of its third-party insurance programs, as well as with respect to certain other amounts.

As of March 31, 2023 and December 31, 2022, the gross amount accrued for employer’s liability, workers’ compensation, auto liability, general liability, and group health claims totaled $322.2 million and $319.6 million, of which $210.0 million and $209.8 million are included in “Insurance and other non-current liabilities,” and the remainder is included in “Accounts payables and accrued expenses.” Related insurance recoveries/receivables as of March 31, 2023 and December 31, 2022 were $5.4 million and $5.8 million, of which $0.3 million and $0.3 million are included in “Prepaid expenses and other current assets” and $5.1 million and $5.5 million are included in “Other assets, net.”

Bonds and Parent Guarantees

As of March 31, 2023, the total amount of the outstanding performance bonds was estimated to be approximately $5.7 billion. Quanta’s estimated maximum exposure related to the value of the performance bonds outstanding is lowered on each bonded project as the cost to complete is reduced, and each commitment under a performance bond generally extinguishes concurrently with the expiration of its related contractual obligation. The estimated cost to complete these bonded projects was approximately $2.1 billion as of March 31, 2023.

Capital Commitments and Other Committed Expenditures

As of March 31, 2023, Quanta had $178.1 million of production orders with expected delivery dates during the remainder of 2023 for capital commitments primarily related to the expansion of its equipment fleet. The majority of this amount relates to the expansion of Quanta’s equipment fleet in order to accommodate manufacturer lead times on certain types of vehicles. Although Quanta has committed to purchase these vehicles at the time of their delivery, Quanta anticipates that the majority of these orders will be assigned to third party leasing companies and made available under certain master equipment lease agreements, thereby releasing Quanta from its capital commitments.

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Detail of Certain Accounts

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Detail of Certain Accounts

15. DETAIL OF CERTAIN ACCOUNTS:

Cash and Cash Equivalents

As of March 31, 2023 and December 31, 2022, cash equivalents were $49.6 million and $260.1 million and consisted primarily of money market investments and money market mutual funds. Quanta’s cash equivalents are categorized as Level 1 assets, as all values are based on unadjusted quoted prices for identical assets in an active market. Cash and cash equivalents in foreign bank accounts are primarily held in Canada and Australia.

Cash and cash equivalents held by joint ventures, which are either consolidated or proportionately consolidated, are available to support joint venture operations, but Quanta cannot utilize those assets to support its other operations. Quanta generally has no right to cash and cash equivalents held by a joint venture other than participating in distributions, to the extent made, and in the event of dissolution. Cash and cash equivalents held by Quanta’s wholly-owned captive insurance company are generally not available for use in support of its other operations. Amounts related to cash and cash equivalents held by consolidated or proportionately consolidated joint ventures and the captive insurance company, which are included in Quanta’s total cash and cash equivalents balances, were as follows (in thousands):

	March 31, 2023		December 31, 2022
Cash and cash equivalents held by domestic joint ventures	$	17,703	$	14,291
Cash and cash equivalents held by foreign joint ventures	10,010		6,277
Total cash and cash equivalents held by joint ventures	27,713		20,568
Cash and cash equivalents held by captive insurance company	34,285		35,085
Cash and cash equivalents not held by joint ventures or captive insurance company	155,117		372,852
Total cash and cash equivalents	$	217,115	$	428,505

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
Accounts payable, trade	$	1,359,912	$	1,302,086
Accrued compensation and related expenses	382,891		469,048
Other accrued expenses	425,371		381,995
Accounts payable and accrued expenses	$	2,168,174	$	2,153,129

Other accrued expenses primarily include accrued insurance liabilities, income and franchise taxes payable and deferred revenues.

Property and Equipment

Accumulated depreciation related to property and equipment was $1.70 billion and $1.65 billion as of March 31, 2023 and December 31, 2022.

Other Intangible Assets

Accumulated amortization related to other intangible assets was $1.10 billion and $1.02 billion as of March 31, 2023 and December 31, 2022.

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Supplemental Cash Flow Information

3 Months Ended

Mar. 31, 2023

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

16. SUPPLEMENTAL CASH FLOW INFORMATION:

The net effects of changes in assets and liabilities, net of non-cash transactions, on cash flows from operating activities are as follows (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Accounts and notes receivable	$	27,874	$	25,182
Contract assets	(206,812)		(165,549)
Inventories	1,061		(9,488)
Prepaid expenses and other current assets	(29,227)		21,094
Accounts payable and accrued expenses and other non-current liabilities	(33,618)		(57,903)
Contract liabilities	320		(2,797)
Other, net	(6,926)		632
Net change in assets and liabilities, net of non-cash transactions	$	(247,328)	$	(188,829)

Reconciliations of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of such amounts shown in the statements of cash flows are as follows (in thousands):

	March 31,
	2023		2022
Cash and cash equivalents	$	217,115	$	238,258
Restricted cash included in “Prepaid expenses and other current assets” (1)	6,059		1,628
Restricted cash included in “Other assets, net” (1)	950		950
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows	$	224,124	$	240,836

	December 31,
	2022		2021
Cash and cash equivalents	$	428,505	$	229,097
Restricted cash included in “Prepaid expenses and other current assets” (1)	3,759		1,836
Restricted cash included in “Other assets, net” (1)	950		954
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows	$	433,214	$	231,887

(1)    Restricted cash includes any cash that is legally restricted as to withdrawal or usage.

Supplemental cash flow information related to leases is as follows (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$	(23,627)	$	(25,057)
Operating cash flows used by finance leases	$	(28)	$	(27)
Financing cash flows used by finance leases	$	(422)	$	(365)
Lease assets obtained in exchange for lease liabilities:
Operating leases	$	30,876	$	9,106
Finance leases	$	13,277	$	1,134
Lease financing transaction assets obtained in exchange for lease financing transaction liabilities	$	2,237	$	23,233

Additional supplemental cash flow information is as follows (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Cash (paid) received during the period for —
Interest paid	$	(17,606)	$	(7,470)
Income taxes paid	$	(17,386)	$	(4,832)
Income tax refunds	$	1,266	$	2,957

Accrued capital expenditures were $20.5 million and $21.4 million as of March 31, 2023 and 2022. The impact of these items has been excluded from Quanta’s capital expenditures in the accompanying condensed consolidated statements of cash flows due to their non-cash nature.

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Business and Organization, Basis of Presentation and Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Interim Condensed Consolidated Financial Information

These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP), have been condensed or omitted pursuant to those rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Quanta’s Annual Report on Form 10-K for the year ended December 31, 2022. Quanta believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income and cash flows with respect to the interim condensed consolidated financial statements have been included. The results of operations and comprehensive income for the interim periods are not necessarily indicative of the results for the entire fiscal year. The results of Quanta have historically been subject to significant seasonal fluctuations.

New Accounting Pronouncement Not Yet Adopted

Recently Adopted Guidance

In October 2021, the Financial Accounting Standards Board (FASB) issued an update that requires recognition and measurement of contract assets and contract liabilities acquired in a business combination in accordance with FASB ASC 606 (Revenue from Contracts with Customers). At the acquisition date, an acquirer should account for the related contract revenue in accordance with FASB ASC 606. This update is effective for interim and annual periods beginning after December 15, 2022, with amendments generally applied prospectively. Quanta adopted this update effective January 1, 2023, and it did not have a material impact on Quanta’s consolidated financial statements.

New Accounting Pronouncement Not Yet Adopted

In June 2022, the FASB issued an update that clarifies the guidance in FASB ASC 820 (Fair Value Measurement) for equity securities subject to contractual sale restrictions. The update prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. This update is effective for interim and annual periods after December 15, 2023. Early adoption is permitted. This guidance will increase the fair market value of the consideration paid in equity securities in a business combination, and therefore it may increase the amount allocated to goodwill. Quanta will adopt this update by January 1, 2024, and it is not expected to have a material impact on Quanta’s consolidated financial statements.

Revenue Recognition

ContractsCertain of Quanta’s services are generally provided pursuant to master service agreements (MSAs), repair and maintenance contracts and fixed price and non-fixed price construction contracts. These contracts are classified into three categories: unit-price contracts, cost-plus contracts and fixed price contracts.Under fixed-price contracts, as well as unit-price contracts with more than an insignificant amount of partially completed units, revenue is recognized as performance obligations are satisfied over time, with the percentage completion generally measured as the percentage of costs incurred to total estimated costs for such performance obligation.These amounts represent management’s estimates of the consolidated revenues that are expected to be realized from the remaining portion of firm orders under fixed price contracts not yet completed or for which work had not yet begun as of such dates. For purposes of calculating remaining performance obligations, Quanta includes all estimated revenues attributable to consolidated joint ventures and variable interest entities, revenues from funded and unfunded portions of government contracts to the extent they are reasonably expected to be realized, and revenues from change orders and claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations are potential orders under MSAs and non-fixed price contracts expected to be completed within one year.

Contract Estimates and Changes in Estimates

Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors, including unforeseen or changed circumstances not included in Quanta’s cost estimates or covered by its contracts. Some of the factors that can result in positive changes in estimates on projects include successful execution through project risks, reduction of estimated project costs or increases of estimated revenues. Some of the factors that can result in negative changes in estimates include concealed or unknown site conditions; changes to or disputes with customers regarding the scope of services; changes in estimates related to the length of time to complete a performance obligation; changes or delays with respect to permitting and regulatory requirements and materials; changes in the cost of equipment, commodities, materials or skilled labor; unanticipated costs or claims due to delays or failure to perform by customers or third parties; customer failure to provide required materials or equipment; errors in engineering, specifications or designs; project modifications; adverse weather conditions, natural disasters, and other emergencies; and performance and quality issues causing delay (including payment of liquidated damages) or requiring rework or replacement. Any changes in estimates could result in changes to profitability or losses associated with the related performance obligations.

Additionally, changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. Quanta recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated.Changes in estimates can result in the recognition of revenue in a current period for performance obligations that were satisfied or partially satisfied in prior periods or the reversal of previously recognized revenue if the currently estimated revenue is less than the previous estimate. The impact of a change in contract estimate is measured as the difference between the revenue or gross profit recognized in the prior period as compared to the revenue or gross profit which would have been recognized had the revised estimate been used as the basis of recognition in the prior period. Changes in estimates can also result in contract losses, which are recognized in full when they are determined to be probable and can be reasonably estimated.Quanta determines its allowance for credit losses based on an estimate of expected credit losses for financial instruments, primarily accounts receivable and contract assets. The assessment of the allowance for credit losses involves certain judgments

and estimates. Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Expected credit losses are estimated by evaluating trends in historical write-off experience and applying historical loss ratios to pools of financial assets with similar risk characteristics.

Quanta’s historical loss ratio and its determination of its risk pools, which are used to calculate expected credit losses, may be adjusted for changes in customer credit concentrations within its portfolio of financial assets, its customers’ ability to pay, and other considerations, such as economic and market changes, changes to regulatory or technological environments affecting customers and the consistency between current and forecasted economic conditions and historical economic conditions used to derive historical loss ratios. At the end of each quarter, management reassesses these and other relevant factors, including the impact of uncertainty and challenges in the overall economy and in Quanta’s industries and markets, which currently include inflationary pressure, supply chain and other logistical challenges and increased interest rates.

Additional allowance for credit losses is established for financial asset balances with specific customers where collectability has been determined to be improbable based on customer specific facts and circumstances. Quanta considers accounts receivable delinquent after 30 days but, absent certain specific considerations, generally does not consider such amounts delinquent in its credit loss analysis unless the accounts receivable are at least 120 days past due. In addition, management monitors the credit quality of its receivables by, among other things, obtaining credit ratings for significant customers, assessing economic and market conditions and evaluating material changes to a customer’s business, cash flows and financial condition. Should anticipated recoveries relating to receivables fail to materialize, including anticipated recoveries relating to bankruptcies or other workout situations, Quanta could experience reduced cash flows and losses in excess of current allowances provided.

Accounts receivable are written-off against the allowance for credit losses if they are deemed uncollectible.

Quanta recognizes unbilled receivables for non-fixed price contracts within “Accounts receivable” in certain circumstances, such as when revenues have been earned and recorded but the amount cannot be billed under the terms of the contract until a later date or when amounts arise from routine lags in billing. These balances do not include revenues recognized for work performed under fixed-price contracts and unit-price contracts with more than an insignificant amount of partially completed units, as these amounts are recorded as “Contract assets.” As of March 31, 2023 and December 31, 2022, unbilled receivables included in “Accounts receivable” were $923.1 million and $823.9 million. The increase in unbilled receivables was primarily due to significant increases in work and certain delays in billing related to certain large customers. Quanta also recognizes unearned revenues for non-fixed price contracts when cash is received prior to recognizing revenues for the related performance obligation. Unearned revenues, which are included in “Accounts payable and accrued expenses,” were $75.2 million and $59.6 million as of March 31, 2023 and December 31, 2022.

Segment Information

Quanta reports its results under three reportable segments described below:

•Electric Power Infrastructure Solutions (Electric Power). Quanta’s Electric Power segment provides comprehensive services for the electric power and communications markets.

•Renewable Energy Infrastructure Solutions (Renewable Energy). Quanta’s Renewable Energy segment provides comprehensive infrastructure solutions to customers that are involved in the renewable energy industry.

•Underground Utility and Infrastructure Solutions (Underground and Infrastructure). Quanta’s Underground and Infrastructure segment provides comprehensive infrastructure solutions to customers involved in the transportation, distribution, storage, development and processing of natural gas, oil and other products.

Corporate and Non-allocated Costs include corporate facility costs; non-allocated corporate salaries, benefits and incentive compensation; acquisition and integration costs; non-cash stock-based compensation; amortization related to intangible assets; asset impairment related to goodwill and intangible assets; and change in fair value of contingent consideration liabilities.

Income Taxes

Quanta regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain, including in connection with changes in tax laws. The estimation of required valuation allowances includes estimates of future taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Quanta considers projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income differs from these estimates, Quanta may not realize deferred tax assets to the extent estimated. During 2022, Quanta recorded a valuation allowance against unrealized capital losses related to its minority investment in Starry. During the three months ended March 31, 2023, Starry filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code, as amended. Upon resolution of the bankruptcy proceedings, a portion of Quanta’s unrealized losses may become deductible for income tax purposes.

Cash and Cash Equivalents

Cash and cash equivalents held by joint ventures, which are either consolidated or proportionately consolidated, are available to support joint venture operations, but Quanta cannot utilize those assets to support its other operations. Quanta generally has no right to cash and cash equivalents held by a joint venture other than participating in distributions, to the extent made, and in the event of dissolution. Cash and cash equivalents held by Quanta’s wholly-owned captive insurance company are generally not available for use in support of its other operations.

Stock Repurchases

Quanta’s policy is to record a stock repurchase as of the trade date of the transaction; however, the payment of cash related to the repurchase is made on the settlement date of the transaction.

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Revenue Recognition and Related Balance Sheet Accounts (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Disaggregated by Geographic Location and Contract Type

The following tables present Quanta’s revenue disaggregated by contract type and by geographic location, as determined by the job location (in thousands):

	Three Months Ended March 31,
	2023				2022
By contract type:
Fixed price contracts	$	1,934,888	43.7	%	$	1,689,635	42.6	%
Unit-price contracts	1,497,394		33.8		1,357,602		34.2
Cost-plus contracts	996,544		22.5		918,288		23.2
Total revenues	$	4,428,826	100.0	%	$	3,965,525	100.0	%

	Three Months Ended March 31,
	2023				2022
By primary geographic location:
United States	$	3,666,365	82.8	%	$	3,323,969	83.8	%
Canada	542,360		12.2		550,905		13.9
Australia	154,677		3.5		55,201		1.4
Others	65,424		1.5		35,450		0.9
Total revenues	$	4,428,826	100.0	%	$	3,965,525	100.0	%

Contract Assets and Liabilities

Contract assets and liabilities consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
Contract assets	$	1,287,454	$	1,080,206
Contract liabilities	$	1,143,041	$	1,141,518

Composition of the Allowance for Credit Losses

Activity in Quanta’s allowance for credit losses consisted of the following (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Balance at beginning of period	$	15,644	$	49,749
Increase in provision for credit losses	2,358		133
Write-offs charged against the allowance net of recoveries of amounts previously written off	(1,472)		34
Balance at end of period	$	16,530	$	49,916

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Summarized Financial Information

The following table sets forth segment revenues and segment operating income (loss) for the three months ended March 31, 2023 and 2022. The following table shows dollars in thousands:

	Three Months Ended March 31,
	2023				2022
Revenues:
Electric Power Infrastructure Solutions	$	2,336,037	52.7	%	$	2,138,697	53.9	%
Renewable Energy Infrastructure Solutions	1,008,300		22.8		875,632		22.1
Underground Utility and Infrastructure Solutions	1,084,489		24.5		951,196		24.0
Consolidated revenues	$	4,428,826	100.0	%	$	3,965,525	100.0	%
Operating income (loss):
Electric Power Infrastructure Solutions (1)	$	215,149	9.2	%	$	203,419	9.5	%
Renewable Energy Infrastructure Solutions	35,656		3.5	%	69,942		8.0	%
Underground Utility and Infrastructure Solutions	61,573		5.7	%	48,175		5.1	%
Corporate and Non-Allocated Costs (2)	(186,518)		(4.2)	%	(204,020)		(5.1)	%
Consolidated operating income	$	125,860	2.8	%	$	117,516	3.0	%

(1)    Includes equity in earnings of integral unconsolidated affiliates of $9.6 million and $15.2 million for the three months ended March 31, 2023 and 2022, primarily related to Quanta’s equity interest in LUMA Energy, LLC (LUMA).

(2)    Includes amortization expense of $72.4 million and $115.8 million and non-cash stock-based compensation of $27.5 million and $23.0 million for the three months ended March 31, 2023 and 2022.

The following table shows dollars in thousands:

	Three Months Ended
	March 31,
	2023		2022
Depreciation:
Electric Power Infrastructure Solutions	$	42,085	$	36,779
Renewable Energy Infrastructure Solutions	10,858		8,233
Underground Utility and Infrastructure Solutions	20,500		20,938
Corporate and Non-Allocated Costs	4,939		5,004
Consolidated depreciation	$	78,382	$	70,954

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Acquisitions (Tables)

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Aggregate Consideration Paid or Payable and Allocation Net Assets

The following table summarizes the fair value of total consideration transferred or estimated to be transferred and the fair value of assets acquired and liabilities assumed as of their respective acquisition dates as of March 31, 2023 for acquisitions completed in the three months ended March 31, 2023 (in thousands):

	Three Months Ended
	March 31, 2023
Consideration:
Cash paid or payable	$	463,482
Value of Quanta common stock issued	123,503
Fair value of total consideration transferred or estimated to be transferred	$	586,985
Cash and cash equivalents	$	14,832
Accounts receivable	46,389
Contract assets	195
Inventories	56,960
Prepaid expenses and other current assets	4,392
Property and equipment	146,150
Operating lease assets	14,189
Other assets	4,553
Identifiable intangible assets	113,020
Accounts payable and accrued liabilities	(61,872)
Contract liabilities	(3,071)
Operating lease liabilities, current	(2,552)
Deferred tax liabilities, net	(20,556)
Operating lease liabilities, non-current	(12,242)
Total identifiable net assets	300,387
Goodwill	286,598
Fair value of net assets acquired	$	586,985

Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization

The following table summarizes the estimated fair values of identifiable intangible assets for the acquisitions completed in the three months ended March 31, 2023 as of the acquisition dates and the related weighted average amortization periods by type (in thousands, except for weighted average amortization periods, which are in years).    

	Three Months Ended
	March 31, 2023
	Estimated Fair Value		Weighted Average Amortization Period in Years
Customer relationships	$	79,640	4.6
Backlog	16,115		0.9
Trade names	12,815		15.0
Non-compete agreements	4,450		5.0
Total intangible assets subject to amortization	$	113,020

Discount Rates and Customer Attrition Rates

The following table includes the discount rates and

customer attrition rates used to determine the fair value of customer relationship intangible assets for businesses acquired during the three months ended March 31, 2023 as of the respective acquisition dates:

	Three Months Ended
	March 31, 2023
	Range	Weighted Average
Discount rates	15% to 19%	17%
Customer attrition rates	15% to 20%	19%

Aggregate Fair Values of Outstanding and Unearned Contingent Consideration Liabilities

The aggregate fair value of these outstanding contingent consideration liabilities and their classification in the accompanying consolidated balance sheets is as follows (in thousands):

	March 31, 2023		December 31, 2022
Accounts payable and accrued expenses	$	—	$	5,000
Insurance and other non-current liabilities	143,517		143,517
Total contingent consideration liabilities	$	143,517	$	148,517

Significant Estimates Used by Management in Determining Fair Values of Intangible Assets

The following table includes the volatility factors, weighted average costs of capital and discount rates used to determine the fair value of contingent consideration liabilities during the three months ended March 31, 2023:

	Three Months Ended
	March 31, 2023
	Range	Weighted Average
Volatility factors	35.0% to 43.0%	35.2%
Weighted average cost of capital	14.0% to 15.50%	14.0%
Discount rates	4.06% to 6.20%	6.2%

Unaudited Supplemental Pro Forma Results of Operations

The following unaudited supplemental pro forma results of operations for Quanta, which incorporate the acquisitions completed in the three months ended March 31, 2023 and the year ended December 31, 2022, have been provided for illustrative purposes only and may not be indicative of the actual results that would have been achieved by the combined companies for the periods presented or that may be achieved by the combined companies in the future (in thousands).

	Three Months Ended
	March 31,
	2023		2022
Revenues	$	4,428,826	$	4,091,762
Net income attributable to common stock	$	95,046	$	84,567

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Investments in Affiliates and Other Entities (Tables)

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Equity Investments

The following table presents Quanta’s equity investments by type (in thousands):

	March 31, 2023		December 31, 2022
Equity method investments - integral unconsolidated affiliates	$	98,762	$	101,251
Equity method investments - non-integral unconsolidated affiliates	29,088		55,833
Marketable equity securities	—		—
Non-marketable equity securities	54,152		54,134
Total equity investments	$	182,002	$	211,218

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Per Share Information (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Share Attributable to Common Stock

The amounts used to compute basic and diluted earnings per share attributable to common stock consisted of the following (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Amounts attributable to common stock:
Net income attributable to common stock	$	95,046	$	84,641
Weighted average shares:
Weighted average shares outstanding for basic earnings per share attributable to common stock	144,467		143,541
Effect of dilutive unvested non-participating stock-based awards	4,194		4,541
Weighted average shares outstanding for diluted earnings per share attributable to common stock	148,661		148,082

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Debt Obligations (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Long-term Debt Obligations

Quanta’s long-term debt obligations consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
0.950% Senior Notes due October 2024	$	500,000	$	500,000
2.900% Senior Notes due October 2030	1,000,000		1,000,000
2.350% Senior Notes due January 2032	500,000		500,000
3.050% Senior Notes due October 2041	500,000		500,000
Borrowings under senior credit facility (including Term Loan)	942,100		786,910
Borrowings under commercial paper program	598,750		373,000
Other long-term debt	92,268		92,907
Finance leases	16,577		3,542
Unamortized discount and financing costs	(25,596)		(26,432)
Total long-term debt obligations	4,124,099		3,729,927
Less — Current maturities of long-term debt	39,691		37,495
Total long-term debt obligations, net of current maturities	$	4,084,408	$	3,692,432

Schedule of Interest on Senior Notes

The interest amounts due on Quanta’s senior notes on each payment date are set forth below (dollars in thousands):

Title of the Notes	Interest Amount		Payment Dates	Commencement Date
0.950% Senior Notes due October 2024	$	2,375	April 1 and October 1	April 1, 2022
2.900% Senior Notes due October 2030	$	14,500	April 1 and October 1	April 1, 2021
2.350% Senior Notes due January 2032	$	5,875	January 15 and July 15	July 15, 2022
3.050% Senior Notes due October 2041	$	7,625	April 1 and October 1	April 1, 2022

Borrowings under Credit Facility and Applicable Interest Rates

Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands):

	Three Months Ended
	March 31,
	2023			2022
Maximum amount outstanding	$	956,308		$	1,451,597
Average daily amount outstanding	$	859,270		$	1,256,150
Weighted-average interest rate	5.99		%	1.71		%

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Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Components of Lease Costs

The components of lease costs in the accompanying condensed consolidated statements of operations are as follows (in thousands):

		Three Months Ended
		March 31,
Lease cost	Classification	2023		2022
Finance lease cost:
Amortization of lease assets	Depreciation (1)	$	911	$	440
Interest on lease liabilities	Interest and other financing expenses	208		27
Operating lease cost	Cost of services and Selling, general and administrative expenses	23,223		24,877
Short-term and variable lease cost (2)	Cost of services and Selling, general and administrative expenses	238,078		219,299
Total lease cost		$	262,420	$	244,643

(1)    Depreciation is included within “Cost of services” and “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of operations.

(2)    Short-term lease cost includes both leases and rentals with initial terms of one year or less. Variable lease cost is insignificant.

Future Minimum Lease Payments - Operating Leases

Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands):

	As of March 31, 2023
	Operating Leases		Finance Leases		Lease Financing Transactions		Total
Remainder of 2023	$	65,507	$	1,159	$	12,870	$	79,536
2024	70,456		3,950		14,345		88,751
2025	53,957		3,845		12,577		70,379
2026	39,185		3,628		13,111		55,924
2027	24,428		3,229		10,491		38,148
Thereafter	27,814		852		20,190		48,856
Total future minimum payments related to operating leases, finance leases and lease financing transactions	281,347		16,663		83,584		381,594
Less imputed interest	(23,421)		(86)		—		(23,507)
Total operating lease, finance lease and lease financing transaction liabilities	$	257,926	$	16,577	$	83,584	$	358,087

Future Minimum Lease Payments - Finance Leases

Future minimum lease payments for operating leases, finance leases and lease financing transactions were as follows (in thousands):

	As of March 31, 2023
	Operating Leases		Finance Leases		Lease Financing Transactions		Total
Remainder of 2023	$	65,507	$	1,159	$	12,870	$	79,536
2024	70,456		3,950		14,345		88,751
2025	53,957		3,845		12,577		70,379
2026	39,185		3,628		13,111		55,924
2027	24,428		3,229		10,491		38,148
Thereafter	27,814		852		20,190		48,856
Total future minimum payments related to operating leases, finance leases and lease financing transactions	281,347		16,663		83,584		381,594
Less imputed interest	(23,421)		(86)		—		(23,507)
Total operating lease, finance lease and lease financing transaction liabilities	$	257,926	$	16,577	$	83,584	$	358,087

Other Information Related to Leases

The weighted average remaining lease terms and discount rates were as follows:

	As of March 31, 2023
Weighted average remaining lease term (in years):
Operating leases	4.32
Finance leases	5.23
Weighted average discount rate:
Operating leases	3.8	%
Finance leases	5.0	%

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Equity (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Treasury Stock

Quanta repurchased the following shares of common stock in the open market under its stock repurchase program (in thousands):

Quarter ended:	Shares	Amount
March 31, 2023	—	$	—
December 31, 2022	87	$	11,403
September 30, 2022	158	$	21,033
June 30, 2022	731	$	84,884
March 31, 2022	85	$	10,426

Dividends

Quanta declared and paid the following cash dividends and cash dividend equivalents during 2022 and the first three months of 2023 (in thousands, except per share amounts):

Declaration	Record	Payment	Dividend		Dividends
Date	Date	Date	Per Share		Declared
March 29, 2023	April 10, 2023	April 18, 2023	$	0.08	$	12,100
December 13, 2022	January 3, 2023	January 13, 2023	$	0.08	$	11,756
August 31, 2022	October 3, 2022	October 14, 2022	$	0.07	$	10,322
May 27, 2022	July 1, 2022	July 15, 2022	$	0.07	$	10,283
March 30, 2022	April 11, 2022	April 18, 2022	$	0.07	$	10,459

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of RSUs and PSUs to be Settled in Common Stock Activity

A summary of the activity for RSUs to be settled in common stock for the three months ended March 31, 2023 and 2022 is as follows (RSUs in thousands):

	2023		2022
	RSUs	Weighted Average Grant Date Fair Value (Per Unit)	RSUs	Weighted Average Grant Date Fair Value (Per Unit)
Unvested at January 1	3,263	$78.74	3,880	$61.64
Granted	626	$158.82	768	$110.24
Vested	(1,120)	$65.50	(1,177)	$48.50
Forfeited	(75)	$107.63	(38)	$63.66
Unvested at March 31	2,694	$102.59	3,433	$77.09

A summary of the activity for PSUs to be settled in common stock for the three months ended March 31, 2023 and 2022 is as follows (PSUs in thousands):

	2023		2022
	PSUs	Weighted Average Grant Date Fair Value (Per Unit)	PSUs	Weighted Average Grant Date Fair Value (Per Unit)
Unvested at January 1	733	$65.39	931	$47.27
Granted	177	$174.50	148	$119.04
Vested	(413)	$35.12	(334)	$40.15
Unvested at March 31	497	$129.38	745	$64.69

Grant Date Fair Value for Awards of Performance Units Inputs

The Monte Carlo simulation valuation methodology applied the following key inputs:

	2023		2022
Valuation date price based on March 9, 2023 and March 2, 2022 closing stock prices of Quanta common stock	$160.55		$110.24
Historical volatility	35	%	39	%
Risk-free interest rate	4.62	%	1.64	%
Term in years	2.81		2.83

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Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2023

Postemployment Benefits [Abstract]

Schedule of Changes in Fair Value of Plan Assets

Changes in the fair market value of Quanta’s COLI assets and deferred compensation liabilities largely offset and are recorded in the accompanying statements of operations as follows (in thousands):

		Three Months Ended
		March 31,
Classification	Change in fair market value of	2023		2022
(Loss) gain included in Selling, general and administrative expenses	Deferred compensation liabilities	$	(4,076)	$	3,927
Other income (expense), net	COLI assets	$	3,146	$	(4,140)

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Detail of Certain Accounts (Tables)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Cash and Cash Equivalents

Amounts related to cash and cash equivalents held by consolidated or proportionately consolidated joint ventures and the captive insurance company, which are included in Quanta’s total cash and cash equivalents balances, were as follows (in thousands):

	March 31, 2023		December 31, 2022
Cash and cash equivalents held by domestic joint ventures	$	17,703	$	14,291
Cash and cash equivalents held by foreign joint ventures	10,010		6,277
Total cash and cash equivalents held by joint ventures	27,713		20,568
Cash and cash equivalents held by captive insurance company	34,285		35,085
Cash and cash equivalents not held by joint ventures or captive insurance company	155,117		372,852
Total cash and cash equivalents	$	217,115	$	428,505

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
Accounts payable, trade	$	1,359,912	$	1,302,086
Accrued compensation and related expenses	382,891		469,048
Other accrued expenses	425,371		381,995
Accounts payable and accrued expenses	$	2,168,174	$	2,153,129

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Supplemental Cash Flow Information (Tables)

3 Months Ended

Mar. 31, 2023

Supplemental Cash Flow Elements [Abstract]

Net Effects of Changes in Operating Assets and Liabilities, Net, on Cash Flows from Operating Activities

The net effects of changes in assets and liabilities, net of non-cash transactions, on cash flows from operating activities are as follows (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Accounts and notes receivable	$	27,874	$	25,182
Contract assets	(206,812)		(165,549)
Inventories	1,061		(9,488)
Prepaid expenses and other current assets	(29,227)		21,094
Accounts payable and accrued expenses and other non-current liabilities	(33,618)		(57,903)
Contract liabilities	320		(2,797)
Other, net	(6,926)		632
Net change in assets and liabilities, net of non-cash transactions	$	(247,328)	$	(188,829)

Reconciliation of Cash, Cash Equivalents, and Restricted Cash and Additional Supplemental Cash Flow Information

Reconciliations of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of such amounts shown in the statements of cash flows are as follows (in thousands):

	March 31,
	2023		2022
Cash and cash equivalents	$	217,115	$	238,258
Restricted cash included in “Prepaid expenses and other current assets” (1)	6,059		1,628
Restricted cash included in “Other assets, net” (1)	950		950
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows	$	224,124	$	240,836

	December 31,
	2022		2021
Cash and cash equivalents	$	428,505	$	229,097
Restricted cash included in “Prepaid expenses and other current assets” (1)	3,759		1,836
Restricted cash included in “Other assets, net” (1)	950		954
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows	$	433,214	$	231,887

(1)    Restricted cash includes any cash that is legally restricted as to withdrawal or usage.

Additional supplemental cash flow information is as follows (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Cash (paid) received during the period for —
Interest paid	$	(17,606)	$	(7,470)
Income taxes paid	$	(17,386)	$	(4,832)
Income tax refunds	$	1,266	$	2,957

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases is as follows (in thousands):

	Three Months Ended
	March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$	(23,627)	$	(25,057)
Operating cash flows used by finance leases	$	(28)	$	(27)
Financing cash flows used by finance leases	$	(422)	$	(365)
Lease assets obtained in exchange for lease liabilities:
Operating leases	$	30,876	$	9,106
Finance leases	$	13,277	$	1,134
Lease financing transaction assets obtained in exchange for lease financing transaction liabilities	$	2,237	$	23,233

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Revenue Recognition and Related Balance Sheet Accounts - Additional Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) Customer	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Disaggregation of Revenue [Line Items]
Percent of total revenues recognized associated with revenue recognition method	50.10%	51.20%
Revenues recognized related to change orders and claims	$ 631,600		$ 549,300
Change in contract estimates, favorable (unfavorable) impact on revenue, percent	0.10%	0.80%
Change in contract estimates, (favorable) unfavorable impact on operating results, percent		(5.30%)
Change in contract estimates, (favorable) unfavorable impact on operating results, amount		$ (29,300)
Revenue recognized related to amounts in contract liabilities outstanding at the beginning of period	$ 641,100
Write-offs charged against the allowance net of recoveries of amounts previously written off	(1,472)	34
Increase in provision for credit losses	2,358	$ 133
Current retainage balances	392,500		397,600
Non-current retainage balances	187,700		136,200
Unbilled receivables	923,100		823,900
Unearned revenues, current portion	$ 75,200		$ 59,600
Projects In Progress
Disaggregation of Revenue [Line Items]
Change in contract estimates, (favorable) unfavorable impact on operating results, percent	5.00%
Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Number of customers representing ten percent or more of revenues | Customer	0
Customer Concentration Risk | Revenue Benchmark | Electric Power Infrastructure Solutions and Renewable Energy Infrastructure Solutions
Disaggregation of Revenue [Line Items]
Concentration risk percentage		11.00%
Customer Concentration Risk | One Customer | Accounts Receivable | Renewable Energy Infrastructure Solutions
Disaggregation of Revenue [Line Items]
Concentration risk percentage	15.00%		13.00%

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Revenue Recognition and Related Balance Sheet Accounts - Performance Obligations (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 10,260	$ 8,800
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of remaining performance obligation expected to be recognized		72.10%
Recognition period for remaining performance obligation	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of remaining performance obligation expected to be recognized	72.00%
Recognition period for remaining performance obligation		12 months

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Revenue Recognition and Related Balance Sheet Accounts - Revenue Disaggregated by Geographic Location and Contract Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 4,428,826	$ 3,965,525
Percent of total revenues	100.00%	100.00%
United States
Disaggregation of Revenue [Line Items]
Revenues	$ 3,666,365	$ 3,323,969
Percent of total revenues	82.80%	83.80%
Canada
Disaggregation of Revenue [Line Items]
Revenues	$ 542,360	$ 550,905
Percent of total revenues	12.20%	13.90%
Australia
Disaggregation of Revenue [Line Items]
Revenues	$ 154,677	$ 55,201
Percent of total revenues	3.50%	1.40%
Others
Disaggregation of Revenue [Line Items]
Revenues	$ 65,424	$ 35,450
Percent of total revenues	1.50%	0.90%
Unit-price contracts
Disaggregation of Revenue [Line Items]
Revenues	$ 1,497,394	$ 1,357,602
Percent of total revenues	33.80%	34.20%
Cost-plus contracts
Disaggregation of Revenue [Line Items]
Revenues	$ 996,544	$ 918,288
Percent of total revenues	22.50%	23.20%
Fixed price contracts
Disaggregation of Revenue [Line Items]
Revenues	$ 1,934,888	$ 1,689,635
Percent of total revenues	43.70%	42.60%

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Revenue Recognition and Related Balance Sheet Accounts - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract assets	$ 1,287,454	$ 1,080,206
Contract liabilities	$ 1,143,041	$ 1,141,518

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Revenue Recognition and Related Balance Sheet Accounts - Composition of the Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 15,644	$ 49,749
Increase in provision for credit losses	2,358	133
Write-offs charged against the allowance net of recoveries of amounts previously written off	(1,472)	34
Balance at end of period	$ 16,530	$ 49,916

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Segment Information - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment	3
Revenues	$ 4,428,826	$ 3,965,525
Foreign Countries
Segment Reporting Information [Line Items]
Revenues	762,500	641,600
Property and equipment	293,400		$ 298,000
Canada
Segment Reporting Information [Line Items]
Revenues	$ 542,360	$ 550,905
Percentage of foreign revenues	71.00%	86.00%

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Segment Information - Summarized Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Revenues	$ 4,428,826	$ 3,965,525
Operating income (loss)	$ 125,860	$ 117,516
Operating income (loss) margin, percentage	2.80%	3.00%
Equity in earnings of integral unconsolidated affiliates	$ 9,620	$ 15,152
Non-cash stock compensation expense	27,451	22,992
Depreciation	78,382	70,954
Integral Unconsolidated Affiliates
Segment Reporting Information [Line Items]
Equity in earnings of integral unconsolidated affiliates	$ 9,600	$ 15,200
Revenue from Contract with Customer, Segment Benchmark | Segment Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk percentage	100.00%	100.00%
Corporate and Non-Allocated Costs
Segment Reporting Information [Line Items]
Operating income (loss)	$ (186,518)	$ (204,020)
Operating income (loss) margin, percentage	(4.20%)	(5.10%)
Amortization	$ 72,400	$ 115,800
Non-cash stock compensation expense	27,500	23,000
Depreciation	4,939	5,004
Electric Power Infrastructure Solutions | Operating Segments
Segment Reporting Information [Line Items]
Revenues	2,336,037	2,138,697
Operating income (loss)	$ 215,149	$ 203,419
Operating income (loss) margin, percentage	9.20%	9.50%
Depreciation	$ 42,085	$ 36,779
Electric Power Infrastructure Solutions | Operating Segments | Revenue from Contract with Customer, Segment Benchmark | Segment Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk percentage	52.70%	53.90%
Renewable Energy Infrastructure Solutions | Operating Segments
Segment Reporting Information [Line Items]
Revenues	$ 1,008,300	$ 875,632
Operating income (loss)	$ 35,656	$ 69,942
Operating income (loss) margin, percentage	3.50%	8.00%
Depreciation	$ 10,858	$ 8,233
Renewable Energy Infrastructure Solutions | Operating Segments | Revenue from Contract with Customer, Segment Benchmark | Segment Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk percentage	22.80%	22.10%
Underground Utility and Infrastructure Solutions | Operating Segments
Segment Reporting Information [Line Items]
Revenues	$ 1,084,489	$ 951,196
Operating income (loss)	$ 61,573	$ 48,175
Operating income (loss) margin, percentage	5.70%	5.10%
Depreciation	$ 20,500	$ 20,938
Underground Utility and Infrastructure Solutions | Operating Segments | Revenue from Contract with Customer, Segment Benchmark | Segment Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk percentage	24.50%	24.00%

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Acquisitions - Narrative (Details) $ in Thousands	1 Months Ended		3 Months Ended		12 Months Ended
	Jan. 31, 2023 USD ($) business shares	Jul. 31, 2022 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($)
Business Acquisition [Line Items]
Net tangible assets acquired					$ 186,600
Intangible assets					126,100
Goodwill					299,200
Cash payment for contingent consideration liabilities			$ 5,000	$ 1,600
Acquisitions 2023
Business Acquisition [Line Items]
Number of businesses acquired | business	3
Cash consideration	$ 463,500
Number of shares granted for acquired companies (in shares) | shares	1,018,946
Value of Quanta common stock issued	$ 123,500		123,503
Cash consideration			463,482
Intangible assets			113,020
Goodwill			286,598
Goodwill expected to be deductible for income tax			233,500		233,500
Revenues included in consolidated results of operations			93,500
Income (loss) before taxes			(16,100)
Amortization expense			8,600
Acquisition costs			17,800
Acquisitions 2022
Business Acquisition [Line Items]
Cash consideration		$ 22,300
Post-acquisition period, financial performance objectives		5 years
Acquisitions, Multiple Periods
Business Acquisition [Line Items]
Contingent consideration payments (up to)			$ 321,700		$ 321,700

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Acquisitions - Aggregate Consideration Paid or Payable and Allocation of Net Assets (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Jan. 31, 2023	Mar. 31, 2023	Mar. 31, 2023
Business Acquisition [Line Items]
Goodwill			$ 299,200
Acquisitions 2023
Business Acquisition [Line Items]
Cash paid or payable		$ 463,482
Value of Quanta common stock issued	$ 123,500	123,503
Fair value of total consideration transferred or estimated to be transferred		586,985
Cash and cash equivalents		14,832	14,832
Accounts receivable		46,389	46,389
Contract assets		195	195
Inventories		56,960	56,960
Prepaid expenses and other current assets		4,392	4,392
Property and equipment		146,150	146,150
Operating lease assets		14,189	14,189
Other assets		4,553	4,553
Identifiable intangible assets		113,020	113,020
Accounts payable and accrued liabilities		(61,872)	(61,872)
Contract liabilities		(3,071)	(3,071)
Operating lease liabilities, current		(2,552)	(2,552)
Deferred tax liabilities, net		(20,556)	(20,556)
Operating lease liabilities, non-current		(12,242)	(12,242)
Total identifiable net assets		300,387	300,387
Goodwill		286,598
Fair value of net assets acquired		$ 586,985	$ 586,985

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Acquisitions - Estimated Fair Values of Identifiable Intangible Assets and Related Weighted Average Amortization (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Estimated fair value at acquisition date		$ 126,100
Acquisitions 2023
Finite-Lived Intangible Assets [Line Items]
Estimated fair value at acquisition date	$ 113,020
Acquisitions 2023 | Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated fair value at acquisition date	$ 79,640
Weighted average amortization period at acquisition date	4 years 7 months 6 days
Acquisitions 2023 | Backlog
Finite-Lived Intangible Assets [Line Items]
Estimated fair value at acquisition date	$ 16,115
Weighted average amortization period at acquisition date	10 months 24 days
Acquisitions 2023 | Trade names
Finite-Lived Intangible Assets [Line Items]
Estimated fair value at acquisition date	$ 12,815
Weighted average amortization period at acquisition date	15 years
Acquisitions 2023 | Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Estimated fair value at acquisition date	$ 4,450
Weighted average amortization period at acquisition date	5 years

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Acquisitions - Significant Estimates Used by Management in Determining Fair Values of Customer Relationships Acquired (Details) - Customer relationships	3 Months Ended
	Mar. 31, 2023
Minimum
Goodwill And Intangible Assets [Line Items]
Discount rates	15.00%
Customer attrition rates	15.00%
Maximum
Goodwill And Intangible Assets [Line Items]
Discount rates	19.00%
Customer attrition rates	20.00%
Weighted Average
Goodwill And Intangible Assets [Line Items]
Discount rates	17.00%
Customer attrition rates	19.00%

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Acquisitions - Aggregate Fair Values of Outstanding Contingent Consideration Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Business Acquisition, Contingent Consideration [Line Items]
Total contingent consideration liabilities	$ 143,517	$ 148,517
Accounts payable and accrued expenses
Business Acquisition, Contingent Consideration [Line Items]
Accounts payable and accrued expenses	0	5,000
Insurance and other non-current liabilities
Business Acquisition, Contingent Consideration [Line Items]
Insurance and other non-current liabilities	$ 143,517	$ 143,517

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Acquisitions - Factors Used to Determine Fair Value of Contingent Consideration Liabilities (Details) - Level 3 - Recurring - Valuation, Market Approach	Mar. 31, 2023
Minimum | Volatility factors
Business Acquisition [Line Items]
Contingent consideration liability, measurement input	0.350
Minimum | Weighted average cost of capital
Business Acquisition [Line Items]
Contingent consideration liability, measurement input	0.140
Minimum | Discount rates
Business Acquisition [Line Items]
Contingent consideration liability, measurement input	0.0406
Maximum | Volatility factors
Business Acquisition [Line Items]
Contingent consideration liability, measurement input	0.430
Maximum | Weighted average cost of capital
Business Acquisition [Line Items]
Contingent consideration liability, measurement input	0.1550
Maximum | Discount rates
Business Acquisition [Line Items]
Contingent consideration liability, measurement input	0.0620
Weighted Average | Volatility factors
Business Acquisition [Line Items]
Contingent consideration liability, measurement input	0.352
Weighted Average | Weighted average cost of capital
Business Acquisition [Line Items]
Contingent consideration liability, measurement input	0.140
Weighted Average | Discount rates
Business Acquisition [Line Items]
Contingent consideration liability, measurement input	0.062

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Acquisitions - Unaudited Supplemental Pro Forma Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Revenues	$ 4,428,826	$ 4,091,762
Net income attributable to common stock	$ 95,046	$ 84,567

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Investments in Affiliates and Other Entities - Equity Investments by Type (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Marketable equity securities	$ 0	$ 0
Non-marketable equity securities	54,152	54,134
Total equity investments	182,002	211,218
Integral Affiliates
Schedule of Equity Method Investments [Line Items]
Equity method investments	98,762	101,251
Non-Integral Unconsolidated Affiliates
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 29,088	$ 55,833

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Investments in Affiliates and Other Entities - Equity Method Investments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) investment	Mar. 31, 2022 USD ($)
Schedule of Equity Method Investments [Line Items]
Distributions to non-controlling interests	$ 8,741		$ 538
Equity in earnings of integral unconsolidated affiliates	9,620		15,152
Non-controlling Interests
Schedule of Equity Method Investments [Line Items]
Distributions to non-controlling interests	8,741		538
Non-Integral Unconsolidated Affiliates
Schedule of Equity Method Investments [Line Items]
Number of investments sold | investment		1
Realized gain (loss) on disposal		$ 25,900
Cash received	56,600
Equity in earnings of integral unconsolidated affiliates	1,600		5,300
Non-Integral Unconsolidated Affiliates | Non-controlling Interests
Schedule of Equity Method Investments [Line Items]
Realized gain (loss) on disposal		10,400
Distributions to non-controlling interests	8,700
Integral Affiliates
Schedule of Equity Method Investments [Line Items]
Due from related parties	21,300	96,900
Due to related parties	8,700	$ 9,300
Revenue from related parties	48,300		25,100
Related party cost of sales	12,000		50,400
Integral Unconsolidated Affiliates
Schedule of Equity Method Investments [Line Items]
Equity in earnings of integral unconsolidated affiliates	9,600		$ 15,200
Integral and Non-Integral Unconsolidated Affiliates
Schedule of Equity Method Investments [Line Items]
Undistributed earnings of unconsolidated affiliates	$ 19,600

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Investments in Affiliates and Other Entities - Marketable and Non-Marketable Equity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Equity security fair value	$ 0	$ 0
Starry Group Holdings, Inc.
Schedule of Equity Method Investments [Line Items]
Equity security fair value	0	0
Unrealized loss on investment	$ 91,500	$ 91,500

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Per Share Information - Basic and Diluted Earnings Per Share Attributable to Common Stock (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Amounts attributable to common stock:
Net income attributable to common stock, basic	$ 95,046	$ 84,641
Net income attributable to common stock, diluted	$ 95,046	$ 84,641
Weighted average shares:
Weighted average shares outstanding for basic earnings per share attributable to common stock (in shares)	144,467	143,541
Effect of dilutive unvested non-participating stock-based awards (in shares)	4,194	4,541
Weighted average shares outstanding for diluted earnings per share attributable to common stock (in shares)	148,661	148,082

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Debt Obligations - Long-term Debt Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Sep. 23, 2021	Sep. 22, 2020
Debt Instrument [Line Items]
Borrowings under senior credit facility (including Term Loan)	$ 942,100	$ 786,910
Other long-term debt	92,268	92,907
Finance leases	16,577	3,542
Unamortized discount and financing costs	(25,596)	(26,432)
Total long-term debt obligations	4,124,099	3,729,927
Less — Current maturities of long-term debt	39,691	37,495
Long-term debt, net of current maturities	4,084,408	3,692,432
Senior Notes
Debt Instrument [Line Items]
Long-term debt	2,480,000
Unamortized discount and financing costs	(23,000)
Senior Notes Due October 2024 | Senior Notes
Debt Instrument [Line Items]
Interest rate			0.95%
Long-term debt	500,000	500,000
Senior Notes Due October 2030 | Senior Notes
Debt Instrument [Line Items]
Interest rate				2.90%
Long-term debt	1,000,000	1,000,000
Senior Notes Due January 2032 | Senior Notes
Debt Instrument [Line Items]
Interest rate			2.35%
Long-term debt	500,000	500,000
Senior Notes Due October 2041 | Senior Notes
Debt Instrument [Line Items]
Interest rate			3.05%
Long-term debt	500,000	500,000
Commercial Paper Program | Commercial Paper
Debt Instrument [Line Items]
Borrowings under senior credit facility (including Term Loan)	$ 598,750	$ 373,000

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Debt Obligations - Senior Notes (Details) - Senior Notes - USD ($) $ in Thousands	Sep. 23, 2021	Sep. 22, 2020
Senior Notes Due October 2024
Debt Instrument [Line Items]
Interest rate	0.95%
Semi-annual interest payable	$ 2,375
Senior Notes Due October 2030
Debt Instrument [Line Items]
Interest rate		2.90%
Semi-annual interest payable		$ 14,500
Senior Notes Due January 2032
Debt Instrument [Line Items]
Interest rate	2.35%
Semi-annual interest payable	$ 5,875
Senior Notes Due October 2041
Debt Instrument [Line Items]
Interest rate	3.05%
Semi-annual interest payable	$ 7,625

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Debt Obligations - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Unamortized discount and financing costs	$ 25,596	$ 26,432
Senior Notes
Debt Instrument [Line Items]
Long-term debt, fair value	2,080,000
Long-term debt	2,480,000
Unamortized discount and financing costs	$ 23,000

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Debt Obligations - Senior Credit Facility (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Oct. 08, 2021
Line of Credit Facility [Line Items]
Amount borrowed under the credit facility	$ 942,100		$ 786,910
Deferred financing costs	7,800		$ 8,300
Amortization of discounts and deferred financing costs	8,122	$ 1,458
Senior Credit Facility
Line of Credit Facility [Line Items]
Credit facility available for revolving loans or issuing new letters of credit	1,570,000
Senior Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Amount borrowed under the credit facility	196,800
Term Loan | Senior Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Borrowing capacity				$ 750,000
Amount borrowed under the credit facility	745,300
Revolving Credit Facility | Senior Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Borrowing capacity				$ 2,640,000
Letters of Credit | Senior Credit Facility
Line of Credit Facility [Line Items]
Letters of credit and bank guarantees	272,200
Letters of Credit and Bank Guarantees | Senior Credit Facility | U.S. Dollar
Line of Credit Facility [Line Items]
Letters of credit and bank guarantees	175,300
Letters of Credit and Bank Guarantees | Senior Credit Facility | Canadian Dollars
Line of Credit Facility [Line Items]
Letters of credit and bank guarantees	$ 96,900

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Debt Obligations - Borrowings under Credit Facility and Applicable Interest Rates (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt Disclosure [Abstract]
Maximum amount outstanding	$ 956,308	$ 1,451,597
Average daily amount outstanding	$ 859,270	$ 1,256,150
Weighted-average interest rate	5.99%	1.71%

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Debt Obligations - Commercial Paper Program and Additional Letters of Credit (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Debt Instrument [Line Items]
Amount borrowed under the credit facility	$ 942,100		$ 786,910
Maximum amount outstanding	956,308	$ 1,451,597
Average daily amount outstanding	$ 859,270	$ 1,256,150
Weighted-average interest rate	5.99%	1.71%
Commercial Paper Program | Commercial Paper
Debt Instrument [Line Items]
Amount borrowed under the credit facility	$ 598,750		$ 373,000
Weighted average interest rate, at point in time	5.90%
Maximum amount outstanding	$ 747,700
Average daily amount outstanding	$ 494,600
Weighted-average interest rate	5.40%
Weighted average maturity	14 days
Surety-Backed Letters Of Credit
Debt Instrument [Line Items]
Letters of credit and bank guarantees	$ 190,100

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Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Finance lease cost:
Amortization of lease assets	$ 911	$ 440
Interest on lease liabilities	208	27
Operating lease cost	23,223	24,877
Short-term and variable lease cost	238,078	219,299
Total lease cost	$ 262,420	$ 244,643

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Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Lessee, Lease, Description [Line Items]
Future minimum lease payments for short-term leases	$ 21.4
Related Parties
Lessee, Lease, Description [Line Items]
Related party lease expense	$ 3.9	$ 3.6

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Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Operating Leases
Remainder of 2023	$ 65,507
2024	70,456
2025	53,957
2026	39,185
2027	24,428
Thereafter	27,814
Total future minimum payments related to operating leases, finance leases and lease financing transactions	281,347
Less imputed interest	(23,421)
Total operating lease, finance lease and lease financing transaction liabilities	257,926
Finance Leases
Remainder of 2023	1,159
2024	3,950
2025	3,845
2026	3,628
2027	3,229
Thereafter	852
Total future minimum payments related to operating leases, finance leases and lease financing transactions	16,663
Less imputed interest	(86)
Total operating lease, finance lease and lease financing transaction liabilities	16,577	$ 3,542
Lease Financing Transactions
Remainder of 2023	12,870
2024	14,345
2025	12,577
2026	13,111
2027	10,491
Thereafter	20,190
Total future minimum payments related to operating leases, finance leases and lease financing transactions	83,584
Less imputed interest	0
Total operating lease, finance lease and lease financing transaction liabilities	83,584
Total
Remainder of 2023	79,536
2024	88,751
2025	70,379
2026	55,924
2027	38,148
Thereafter	48,856
Total future minimum payments related to operating leases, finance leases and lease financing transactions	381,594
Less imputed interest	(23,507)
Total operating lease, finance lease and lease financing transaction liabilities	$ 358,087

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Leases - Other Information Related to Leases (Details)	Mar. 31, 2023
Weighted average remaining lease term (in years):
Operating leases	4 years 3 months 25 days
Finance leases	5 years 2 months 23 days
Weighted average discount rate:
Operating leases	3.80%
Finance leases	5.00%

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	(3.70%)	7.20%
Benefits that resulted from equity incentive awards	$ 32.0	$ 20.3
Total amount of unrecognized tax benefits relating to uncertain tax positions	44.1
Increase in the total amount of unrecognized tax benefits relating to uncertain tax positions	2.5
Increase in reserves for uncertain tax positions expected to be taken in current year	2.5
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months	$ 12.1

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Equity - Repurchases of Common Stock Under Stock Repurchase Programs (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Equity [Abstract]
Shares (in shares)	0	87	158	731	85
Amount	$ 0	$ 11,403	$ 21,033	$ 84,884	$ 10,426

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Equity - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Equity [Abstract]
Repurchase of common stock	$ 0	$ (9,479)

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Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands						3 Months Ended
	Mar. 29, 2023	Dec. 13, 2022	Aug. 31, 2022	May 27, 2022	Mar. 30, 2022	Mar. 31, 2023	Mar. 31, 2022
Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.08	$ 0.08	$ 0.07	$ 0.07	$ 0.07	$ 0.08	$ 0.07
Cash dividends declared	$ 12,100	$ 11,756	$ 10,322	$ 10,283	$ 10,459	$ 12,100	$ 10,459

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Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash stock compensation expense	$ 27,451	$ 22,992
Restricted Stock Units to be Settled in Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock, vested	176,100	132,900
Non-cash stock compensation expense	22,600	19,500
Unrecognized compensation cost, related to unvested RSUs to be settled in common stock, total	$ 204,000
Expected weighted average period to recognize compensation cost on RSUs to be settled in common stock	3 years 6 months 14 days
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock, vested	$ 115,500	72,400
Non-cash stock compensation expense	4,900	$ 3,500
Unrecognized compensation cost, related to unvested RSUs to be settled in common stock, total	$ 44,700
Expected weighted average period to recognize compensation cost on RSUs to be settled in common stock	2 years 1 month 28 days
Number of common shares issued in connection with performance units (in shares)	0.7	0.7

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Stock-Based Compensation - Summary of PSUs and RSUs to be Settled in Common Stock Activity (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restricted Stock and RSUs to be Settled in Common Stock
Shares
Unvested, shares, beginning of period (in shares)	3,263	3,880
Shares granted (in shares)	626	768
Vested, shares (in shares)	(1,120)	(1,177)
Forfeited, shares (in shares)	(75)	(38)
Unvested, shares, end of period (in shares)	2,694	3,433
Weighted Average Grant Date Fair Value
Unvested, weighted average grant date fair value, beginning of period (in usd per share)	$ 78.74	$ 61.64
Weighted average grant date fair value (in dollars per share)	158.82	110.24
Vested, weighted average grant date fair value (in usd per share)	65.50	48.50
Forfeited, weighted average grant date fair value (in usd per share)	107.63	63.66
Unvested, weighted average grant date fair value, end of period (in usd per share)	$ 102.59	$ 77.09
Performance Stock Units
Shares
Unvested, shares, beginning of period (in shares)	733	931
Shares granted (in shares)	177	148
Vested, shares (in shares)	(413)	(334)
Unvested, shares, end of period (in shares)	497	745
Weighted Average Grant Date Fair Value
Unvested, weighted average grant date fair value, beginning of period (in usd per share)	$ 65.39	$ 47.27
Weighted average grant date fair value (in dollars per share)	174.50	119.04
Vested, weighted average grant date fair value (in usd per share)	35.12	40.15
Unvested, weighted average grant date fair value, end of period (in usd per share)	$ 129.38	$ 64.69

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Stock-Based Compensation - Grant Date Fair Value for Awards of Performance Units Inputs (Details) - Performance Stock Units - $ / shares	Mar. 09, 2023	Mar. 02, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Valuation date price based on closing stock prices (in dollars per share)	$ 160.55	$ 110.24
Historical volatility	35.00%	39.00%
Risk-free interest rate	4.62%	1.64%
Term in years	2 years 9 months 21 days	2 years 9 months 29 days

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Stock-Based Compensation - RSUs to be Settled in Cash (Details) - Restricted Stock Units to be Settled in Cash - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense related to RSUs to be settled in cash	$ 4.9	$ 3.7
Payments to settle liabilities under compensation plan	9.7	$ 8.6
Accrued liabilities under compensation plan	$ 6.9		$ 11.0

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Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Postemployment Benefits [Abstract]
Deferred compensation liability, noncurrent	$ 76,500		$ 67,400
Life insurance	72,400		$ 64,000
Increase (decrease) to fair market value of plan liabilities	(4,076)	$ 3,927
Increase (decrease) to fair market value of plan assets	$ 3,146	$ (4,140)

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Commitments and Contingencies - Legal Proceedings (Details) $ in Thousands	1 Months Ended			3 Months Ended	12 Months Ended		24 Months Ended	52 Months Ended
	Jan. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Aug. 31, 2022 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2020 USD ($)	Apr. 30, 2019 USD ($)	Mar. 31, 2023 USD ($)	Aug. 31, 2019 building	May 31, 2019 USD ($)
Loss Contingencies [Line Items]
Insurance and other non-current liabilities		$ 567,519			$ 567,519				$ 587,721
Number of buildings with property damage | building										2
Lorenzo Benton v Telecom Network Specialists Inc
Loss Contingencies [Line Items]
Damages awarded					$ 17,300		$ 9,500
Reasonably possible estimate of loss									26,800
Redes | Project Contract Termination
Loss Contingencies [Line Items]
Advance payments received						$ 87,000
On-demand performance bonds						$ 25,000
Construction costs incurred								$ 157,000
Payments received on construction contracts								$ 100,000
Amount claimed in arbitration											$ 190,000
Amount awarded in arbitration			$ 177,000
Insurance recoveries	$ 6,800	$ 100,500
Charge to earnings related to legal proceedings				$ 79,200
Net receivable position on projects				$ 120,000
Redes | Insurance Recoveries
Loss Contingencies [Line Items]
Insurance and other non-current liabilities									$ 107,200
Redes | Telecommunication Networks Construction and Operation
Loss Contingencies [Line Items]
Term of post-construction operation and maintenance period						10 years
Redes | Telecommunication Networks Construction and Operation | Project Contract Termination
Loss Contingencies [Line Items]
Aggregate consideration for projects						$ 248,000
Aggregate consideration to be paid during the construction period						151,000
Aggregate consideration to be paid during the post-construction operation and maintenance period						$ 97,000

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Commitments and Contingencies - Silverado Wildfire Matter (Details) - Silverado Wildfire $ in Thousands	1 Months Ended
	Mar. 31, 2019	Mar. 31, 2023 USD ($)	Oct. 31, 2020 a
Loss Contingencies [Line Items]
Damaged land (in acres) | a			13,000
Time of pole replacement before fire	19 months
Loss contingency accrual | $		$ 0

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Commitments and Contingencies - Insurance (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Commitment And Contingencies [Line Items]
Insurance and other non-current liabilities	$ 587,721	$ 567,519
Employer's Liability, Workers' Compensation, Auto Liability, General Liability and Group Health Care Claims
Commitment And Contingencies [Line Items]
Gross amount accrued for insurance claims	322,200	319,600
Insurance and other non-current liabilities	210,000	209,800
Related insurance recoveries/receivables	5,400	5,800
Related insurance recoveries/receivables included in prepaid expenses and other current assets	300	300
Long-term insurance receivables	$ 5,100	$ 5,500

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Commitments and Contingencies - Bonds and Parent Guarantees (Details) - Performance Bonds $ in Billions	Mar. 31, 2023 USD ($)
Guarantor Obligations [Line Items]
Total amount of outstanding performance bonds	$ 5.7
Estimate
Guarantor Obligations [Line Items]
Estimated cost to complete bonded projects	$ 2.1

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Commitments and Contingencies - Capital Commitments and Other Committed Expenditures (Details) $ in Millions	Mar. 31, 2023 USD ($)
Vehicle Fleet Committed Capital
Unrecorded Unconditional Purchase Obligation [Line Items]
Estimated committed, remainder of fiscal year	$ 178.1

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Detail of Certain Accounts - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Line Items]
Cash equivalents	$ 49,600	$ 260,100
Cash and cash equivalents	217,115	428,505	$ 238,258	$ 229,097
Domestic Joint Ventures
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	17,703	14,291
Foreign Joint Ventures
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	10,010	6,277
Investments in Joint Ventures
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	27,713	20,568
Captive Insurance Company
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	34,285	35,085
Cash Not Held by Joint Ventures
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 155,117	$ 372,852

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Detail of Certain Accounts - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable, trade	$ 1,359,912	$ 1,302,086
Accrued compensation and related expenses	382,891	469,048
Other accrued expenses	425,371	381,995
Accounts payable and accrued expenses	$ 2,168,174	$ 2,153,129

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Detail of Certain Accounts - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated depreciation on property and equipment	$ 1,700	$ 1,650
Accumulated amortization on other intangible assets	$ 1,100	$ 1,020

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Supplemental Cash Flow Information - Net Effects of Changes in Operating Assets and Liabilities, Net, on Cash Flows from Operating Activities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Accounts and notes receivable	$ 27,874	$ 25,182
Contract assets	(206,812)	(165,549)
Inventories	1,061	(9,488)
Prepaid expenses and other current assets	(29,227)	21,094
Accounts payable and accrued expenses and other non-current liabilities	(33,618)	(57,903)
Contract liabilities	320	(2,797)
Other, net	(6,926)	632
Net change in assets and liabilities, net of non-cash transactions	$ (247,328)	$ (188,829)

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Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Cash, Cash Equivalents and Restricted Cash [Line Items]
Cash and cash equivalents	$ 217,115	$ 428,505	$ 238,258	$ 229,097
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows	224,124	433,214	240,836	231,887
Captive Insurance Company
Cash, Cash Equivalents and Restricted Cash [Line Items]
Cash and cash equivalents	34,285	35,085
Prepaid Expenses and Other Current Assets
Cash, Cash Equivalents and Restricted Cash [Line Items]
Restricted cash and cash equivalents	6,059	3,759	1,628	1,836
Other Assets
Cash, Cash Equivalents and Restricted Cash [Line Items]
Restricted cash and cash equivalents	$ 950	$ 950	$ 950	$ 954

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Supplemental Cash Flow Information - Supplemental Cash Flow Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$ (23,627)	$ (25,057)
Operating cash flows used by finance leases	(28)	(27)
Financing cash flows used by finance leases	(422)	(365)
Lease assets obtained in exchange for lease liabilities:
Operating leases	30,876	9,106
Finance leases	13,277	1,134
Lease financing transaction assets obtained in exchange for lease financing transaction liabilities	$ 2,237	$ 23,233

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Supplemental Cash Flow Information - Additional Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Interest paid	$ (17,606)	$ (7,470)
Income taxes paid	(17,386)	(4,832)
Income tax refunds	$ 1,266	$ 2,957

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Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Accrued capital expenditures	$ 20.5	$ 21.4