QUANTA SERVICES INC

13. EQUITY:

Treasury Stock

General

Treasury stock is recorded at cost. Under Delaware law, treasury stock is not counted for quorum purposes or entitled to vote.

Shares withheld for tax withholding obligations

The tax withholding obligations of employees with respect to RSUs and PSUs that are settled in common stock are typically satisfied by Quanta making tax payments and withholding the number of shares of common stock having a value equal to the tax withholding obligation that is due on the date of vesting or settlement (as applicable). With respect to these liabilities, Quanta withheld 0.7 million shares of Quanta common stock during the year ended December 31, 2023, which had a market value of $119.1 million,0.7 million shares of Quanta common stock during the year ended December 31, 2022, which had a market value of $82.9 million, and 0.8 million shares of Quanta common stock during the year ended December 31, 2021, which had a market value of $65.3 million. These shares and the related costs to acquire them were accounted for as adjustments to the balance of treasury stock.

Stock repurchases

On May 23, 2023, Quanta’s Board of Directors approved a stock repurchase program that authorizes Quanta to purchase, from time to time through June 30, 2026, up to $500 million of its outstanding common stock. The stock repurchase program became effective on July 1, 2023, upon expiration of Quanta’s previous stock repurchase program. As of December 31, 2023,

$499.7 million remained available under this repurchase program. Quanta repurchased the following shares of common stock in the open market under the stock repurchase programs (in thousands):

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 years ended December 31, 2023, 2022 and 2021, cash payments related to stock repurchases were $0.4 million, $127.8 million and $66.7 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.

Non-controlling Interests

The carrying amounts of investments held by the non-controlling interests were $11.1 million and $15.4 million at December 31, 2023 and 2022 and are included in “Non-controlling interests” in the consolidated balance sheets. The carrying amount of these investments held by Quanta was $21.2 million and $29.3 million at December 31, 2023 and 2022. See Notes 2 and 16 for further disclosures related to Quanta’s joint venture arrangements.

Dividends

Quanta declared and paid the following cash dividends and cash dividend equivalents during 2023, 2022 and 2021 (in thousands, except per share amounts):

A significant majority of the dividends declared were paid on the corresponding payment dates, which are generally within two months of the declaration date. Holders of certain stock awards generally received cash dividend equivalent payments equal to the cash dividends payable on account of the underlying Quanta common stock. Holders of other stock awards receive cash dividend equivalent payments only to the extent such awards become earned and/or vest. Additionally, cash dividend equivalent payments related to certain stock-based awards that have been deferred pursuant to the terms of Quanta’s deferred compensation plan are recorded as liabilities in such plans until the deferred awards are settled.