Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Equity EQUITY:
Stock repurchases
During the third quarter of 2018, Quanta’s Board of Directors approved a stock repurchase program that authorizes Quanta to purchase, from time to time through June 30, 2021, up to $500 million of its outstanding common stock. In August 2020, Quanta’s Board of Directors authorized Quanta to repurchase, from time to time through June 30, 2023, up to an additional $500 million in shares of its outstanding common stock under a new stock repurchase program. As of March 31, 2021, an aggregate $519.1 million remained under the stock repurchase programs.
Quanta repurchased the following shares of common stock in the open market under the stock repurchase programs (in thousands):
Quarter ended: Shares Amount
March 31, 2021 222  $ 17,710 
December 31, 2020 720  $ 49,949 
September 30, 2020 —  $ — 
June 30, 2020 —  $ — 
March 31, 2020 5,960  $ 200,000 
Repurchases under the repurchase programs 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 programs may be modified or terminated by Quanta’s Board of Directors at any time at its sole discretion and without notice.
Quanta’s policy is to record a stock repurchase as of the trade date; however, the payment of cash related to the repurchase is made on the settlement date of the trade. During the three months ended March 31, 2021 and 2020, cash payments related to stock repurchases were $19.5 million and $200.0 million.
Quanta declared the following cash dividends and cash dividend equivalents during 2020 and the first three months of 2021 (in thousands, except per share amounts):
Declaration Record Payment Dividend Dividends
Date Date Date Per Share Declared
March 25, 2021 April 6, 2021 April 15, 2021 $ 0.06  $ 8,429 
December 11, 2020 January 4, 2021 January 15, 2021 $ 0.06  $ 8,933 
August 26, 2020 October 1, 2020 October 15, 2020 $ 0.05  $ 7,244 
May 28, 2020 July 1, 2020 July 15, 2020 $ 0.05  $ 7,182 
March 26, 2020 April 6, 2020 April 15, 2020 $ 0.05  $ 7,184 
A significant majority of the dividends declared were paid on the corresponding payment dates. Holders of RSUs awarded under the Quanta Services, Inc. 2011 Omnibus Equity Incentive Plan (the 2011 Plan) generally received cash dividend equivalent payments equal to the cash dividend payable on account of the underlying Quanta common stock. Holders of RSUs awarded under the Quanta Services, Inc. 2019 Omnibus Equity Incentive Plan (the 2019 Plan) and holders of unearned and unvested PSUs awarded under the 2011 Plan and the 2019 Plan receive cash dividend equivalent payments only to the extent such RSUs and PSUs 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 a deferred compensation plan maintained by Quanta are recorded as liabilities in such plans until the deferred awards are settled.
The declaration, payment and amount of future cash dividends will be at the discretion of Quanta’s Board of Directors after taking into account various factors, including Quanta’s financial condition, results of operations and cash flows from operating activities; current and anticipated capital requirements and expansion plans; the current and potential impact of the COVID-19 pandemic and other market, industry, economic and political conditions; income tax laws then in effect; and the requirements of Delaware law. In addition, as discussed in Note 7, Quanta’s credit agreement restricts the payment of cash dividends unless certain conditions are met.
Non-controlling Interests
Quanta holds interests in various entities through both joint venture entities that provide infrastructure-related services under specific customer contracts, either directly or through subcontracting relationships, and other equity investments in partially owned entities that own and operate certain infrastructure assets, including investments entered into through the partnership structure Quanta formed with certain infrastructure investors. Quanta has determined that certain of these joint ventures for which Quanta provides the majority of the infrastructure services, which management believes most significantly influences the economic performance of such joint ventures, are VIEs. Management has concluded that Quanta is the primary beneficiary of these joint ventures and has accounted for each on a consolidated basis. The other parties’ equity interests in these joint ventures have been accounted for as “Non-controlling interests” in Quanta’s condensed consolidated balance sheets. Net income attributable to the other parties in the amounts of $1.6 million and $2.8 million for the three months ended March 31, 2021 and 2020 have been accounted for as a reduction of net income in deriving “Net income attributable to common stock” in Quanta’s condensed consolidated statements of operations.
The carrying amount of the investments in VIEs held by Quanta was $13.7 million and $13.2 million at March 31, 2021 and December 31, 2020. The carrying amount of investments held by the non-controlling interests in these VIEs as of March 31, 2021 and December 31, 2020 was $5.2 million and $4.8 million. During the three months ended March 31, 2021 and 2020, net distributions to non-controlling interests were $1.1 million and $2.0 million. There were no other material changes in equity as a result of transfers to or from the non-controlling interests during the three months ended March 31, 2021 or 2020. See Note 11 for further disclosures related to Quanta’s joint venture arrangements.