EMPLOYEE BENEFIT PLANS:

Unions’ Multiemployer Pension Plans

Quanta contributes to a number of multiemployer defined benefit pension plans under the terms of collective bargaining agreements with various unions that represent certain of Quanta’s employees. Quanta’s multiemployer pension plan contribution rates generally are specified in the collective bargaining agreements (usually on an annual basis), and contributions are made to the plans on a “pay-as-you-go” basis based on its union employee payrolls. Quanta may also have additional liabilities imposed by law as a result of its participation in multiemployer defined benefit pension plans. The Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980, imposes certain liabilities upon an employer who is a contributor to a multiemployer pension plan if the employer withdraws from the plan or the plan is terminated or experiences a mass withdrawal. In the fourth quarter of 2011, Quanta recorded a partial withdrawal liability related to the withdrawal by certain Quanta subsidiaries from the Central States, Southeast and Southwest Areas Pension Plan (Central States Plan) following an amendment to the applicable collective bargaining agreement which eliminated their obligations to contribute to the Central States Plan. During the first quarter of 2014, Quanta recorded an adjustment to cost of services to increase the recognized withdrawal liability. Additional information regarding this withdrawal, as well as the withdrawal from the Central States Plan of a company acquired by Quanta in the fourth quarter of 2013, is provided in Collective Bargaining Agreements in Note 15.

The Pension Protection Act of 2006 (PPA) also added special funding and operational rules generally applicable to plan years beginning after 2007 for multiemployer plans in the United States that are classified as “endangered,” “seriously endangered” or “critical” status based on multiple factors (including, for example, the plan’s funded percentage, cash flow position and whether it is projected to experience a minimum funding deficiency). Plans in these classifications must adopt measures to improve their funded status through a funding improvement or rehabilitation plan, as applicable, which may require additional contributions from employers (which may take the form of a surcharge on benefit contributions) and/or modifications to retiree benefits. Certain plans to which Quanta contributes or may contribute in the future are in “endangered,” “seriously endangered” or “critical” status. The amount of additional funds, if any, that Quanta may be obligated to contribute to these plans in the future cannot be estimated due to uncertainty of the future levels of work that require the specific use of union employees covered by these plans, as well as the future contribution levels and possible surcharges on contributions applicable to these plans.

The following table summarizes plan information relating to Quanta’s participation in multiemployer defined benefit pension plans, including company contributions for the last three years, the status under the PPA of the plans and whether the plans are subject to a funding improvement or rehabilitation plan or contribution surcharges. The most recent PPA zone status available in 2017 and 2016 relates to the plan’s fiscal year-end in 2016 and 2015. Forms 5500 were not yet available for the plan years ending in 2017. The PPA zone status is based on information that Quanta received from the respective plans, as well as publicly available information on the U.S. Department of Labor website, and is certified by the plan’s actuary. Although multiple factors or tests may result in red zone or yellow zone status, plans in the red zone generally are less than 65 percent funded, plans in the yellow zone generally are less than 80 percent funded, and plans in the green zone generally are at least 80 percent funded. Under the PPA, red zone plans are classified as “critical” status, yellow zone plans are classified as “endangered” status and green zone plans are classified as neither “endangered” nor “critical” status. The “Subject to Financial Improvement/ Rehabilitation Plan” column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented. The last column lists the expiration dates of Quanta’s collective-bargaining agreements to which the plans are subject. Total contributions to these plans correspond to the number of union employees employed at any given time and the plans in which they participate and vary depending upon the location and number of ongoing projects at a given time and the need for union resources in connection with such projects. Information has been presented separately for individually significant plans, based on PPA funding status classification, and in the aggregate for all other plans.



	Employee Identification Number/ Pension Plan Number	PPA Zone Status		Subject to Financial Improve- ment/ Reha- bilitation Plan	Contributions (in thousands)						Sur-charge Imposed	Expiration Date of Collective Bargaining Agreement
Fund	Employee Identification Number/ Pension Plan Number	2017	2016	Subject to Financial Improve- ment/ Reha- bilitation Plan	2017		2016		2015		Sur-charge Imposed	Expiration Date of Collective Bargaining Agreement
National Electrical Benefit Fund	53-0181657-001	Green	Green	No	$	29,161	$	22,912	$	21,200	No	Varies through May 2022
Pipeline Industry Pension Fund	73-6146433-001	Green	Green	No	13,585		6,954		6,087		No	Varies through May 2020
Central Pension Fund of the IUOE & Participating Employers	36-6052390-001	Green	Green	No	12,176		5,668		5,677		No	Varies through December 2020
Teamsters National Pipe Line Pension Plan	46-1102851-001	Green	Green	No	3,602		1,661		1,343		No	Varies through December 2020
Laborers Pension Trust Fund for Northern California	94-6277608-001	Yellow	Yellow	Yes	3,387		3,805		2,603		Yes	Varies through May 2020
Eighth District Electrical Pension Fund	84-6100393-001	Green	Green	No	3,208		3,089		2,544		No	Varies through December 2020
Laborers National Pension Fund	75-1280827-001	Green	Green	No	3,049		1,358		7,671		No	Varies through December 2020
Alaska Electrical Pension Plan	92-6005171-001	Green	Green	No	2,143		2,701		639		No	Varies through December 2019
Operating Engineers Local 324 Pension Fund	38-1900637-001	Red	Red	Yes	1,969		1,291		1,231		Yes	Varies through December 2020
OE Pension Trust Fund	94-6090764-001	Red	Red	Yes	1,703		1,508		1,264		Yes	Varies through June 2020
Plumbers and Pipefitters National Pension Fund	52-6152779-001	Yellow	Yellow	Yes	1,273		1,666		850		No	Varies through March 2021
Alaska Laborers - Employers Retirement Fund	91-6028298-001	Yellow	Yellow	Yes	536		1,216		181		No	December 2018
Laborers District Council of W PA Pension Fund	25-6135576-001	Red	Red	Yes	418		876		21		Yes	May 2018
Alaska Teamster Employer Pension Plan	92-6003463-024	Red	Red	Yes	255		659		513		Yes	December 2018
Midwest Operating Engineers Pension Trust Fund	36-6140097-001	Yellow	Yellow	Yes	106		793		3,294		Yes	June 2019
All other plans - U.S.					24,234		28,516		20,594
All other plans - Canada ⁽¹⁾					9,277		562		1,303
Total					$	110,082	$	85,235	$	77,015


⁽¹⁾	Multiemployer defined benefit pension plans in Canada are not subject to the reporting requirements under the PPA. Accordingly, certain information was not publicly available.

Quanta’s contributions to the following individually significant plans were five percent or more of the total contributions to these plans for the periods indicated based on the Forms 5500 for these plans for the years ended December 31, 2016 and 2015. Forms 5500 were not yet available for these plans for the year ended December 31, 2017.



Pension Fund		Plan Years in which Quanta Contributions Were Five Percent or More of Total Plan Contributions
Pipeline Industry Pension Fund		2016 and 2015
Eighth District Electrical Pension Fund		2016 and 2015
Local 697 IBEW and Electrical Industry Pension Fund		2016 and 2015
Local Union No. 9 IBEW and Outside Contractors Pension Fund		2016 and 2015
Alaska Plumbing and Pipefitting Industry Pension Fund		2016 and 2015
Teamsters National Pipe Line Pension Plan		2016 and 2015
Alaska Electrical Pension Plan		2016
IBEW Local 456 Pension Plan		2016
Michigan Electrical Employees’ Pension Plan		2016
Laborers National Pension Fund		2015
Michigan Upper Peninsula Intrl Brotherhood of Elec Workers Pension Plan		2015

In addition to the contributions made to multiemployer defined benefit pension plans noted above, Quanta also contributed to multiemployer defined contribution or other benefit plans on behalf of certain union employees. Contributions to union multiemployer defined contribution or other benefit plans by Quanta were $171.4 million, $139.3 million and $147.1 million for the years ended December 31, 2017, 2016 and 2015. Total contributions made to all of these multiemployer plans for the years ended December 31, 2017, 2016 and 2015 correspond to the number of union employees employed at any given time and the plans in which they participate and vary depending upon the location and number of ongoing projects at a given time and the need for union resources in connection with such projects.

Quanta 401(k) Plan

Quanta maintains a 401(k) plan pursuant to which employees who are not provided retirement benefits through a collective bargaining agreement may make contributions through a payroll deduction. Quanta makes matching cash contributions of 100% of each employee’s contribution up to 3% of that employee’s salary and 50% of each employee’s contribution between 3% and 6% of such employee’s salary, up to the maximum amount permitted by law. Contributions to the 401(k) plan by Quanta were $26.3 million, $21.9 million and $17.7 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Deferred Compensation Plans

Quanta maintains nonqualified deferred compensation plans pursuant to which non-employee directors and certain key employees, independent contractors and consultants may defer receipt of some or all of their cash compensation and/or settlement of their equity-based awards, subject to certain limitations. The plan covering key employees provides for employer matching contributions for certain officers and employees whose benefits under the 401(k) plan are limited by federal tax law. Quanta may also make discretionary employer contributions to that plan. Matching contributions and discretionary employer contributions are subject to a vesting schedule, provided that vesting accelerates upon a change in control and the participant’s death or retirement. All matching and discretionary employer contributions, whether vested or not, are forfeited upon a participant’s termination of employment for cause or upon the participant engaging in competition with Quanta or any of its affiliates.

Quanta made contributions to the deferred compensation plans of $1.1 million, $1.0 million and $1.0 million during the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017 and 2016, obligations under these plans were$30.1 million and $19.1 million and were included in “Insurance and other non-current liabilities” in the accompanying consolidated balance sheets, and investments in company-owned life insurance policies of $28.7 million and $17.9 million were included in “Other assets, net” in the accompanying consolidated balance sheets. Individuals participating in these plans receive distributions of their respective balances based on predetermined payout schedules or other events and are also able to direct investments made on their behalf among investment alternatives permitted from time to time under the plan.