Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 28, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-08106 | |
Entity Registrant Name | MasTec, Inc. | |
Entity Central Index Key | 0000015615 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 65-0829355 | |
Entity Address, Address Line One | 800 S. Douglas Road, 12th Floor | |
Entity Address, City or Town | Coral Gables, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33134 | |
City Area Code | 305 | |
Local Phone Number | 599-1800 | |
Title of 12(b) Security | Common Stock, $0.10 Par Value | |
Trading Symbol | MTZ | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 76,332,198 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Income Statement [Abstract] | |||||
Revenue | $ 2,016,618 | $ 1,977,227 | $ 5,473,965 | $ 4,991,865 | |
Costs of revenue, excluding depreciation and amortization | 1,690,558 | 1,681,438 | 4,636,006 | 4,285,320 | |
Depreciation and amortization | 55,196 | 54,863 | 174,171 | 156,478 | |
General and administrative expenses | 77,146 | 80,311 | 220,581 | 211,535 | |
Interest expense, net | 19,297 | 22,330 | 58,178 | 60,183 | |
Equity in earnings of unconsolidated affiliates | (6,966) | (7,671) | (19,778) | (19,080) | |
Other expense (income), net | 8,002 | 323 | 16,323 | (1,976) | |
Income before income taxes | 173,385 | 145,633 | 388,484 | 299,405 | |
Provision for income taxes | (43,303) | (25,091) | (95,073) | (71,999) | |
Net income | 130,082 | 120,542 | 293,411 | 227,406 | |
Net income (loss) attributable to non-controlling interests | 1,486 | (124) | 1,993 | (312) | |
Net income attributable to MasTec, Inc. | [1] | $ 128,596 | $ 120,666 | $ 291,418 | $ 227,718 |
Earnings per share (Note 2): | |||||
Basic earnings per share (in dollars per share) | $ 1.71 | $ 1.55 | $ 3.88 | $ 2.87 | |
Basic weighted average common shares outstanding | 75,217 | 78,096 | 75,131 | 79,399 | |
Diluted earnings per share (in dollars per share) | $ 1.69 | $ 1.52 | $ 3.85 | $ 2.83 | |
Diluted weighted average common shares outstanding | 75,934 | 79,201 | 75,760 | 80,484 | |
[1] | Calculated as total net income less amounts attributable to non-controlling interests. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 130,082 | $ 120,542 | $ 293,411 | $ 227,406 |
Other comprehensive (loss) income: | ||||
Foreign currency translation (losses) gains, net of tax | (334) | 1,230 | (321) | (945) |
Unrealized (losses) gains on equity investee activity, net of tax | (7,108) | 3,137 | (21,302) | 13,790 |
Comprehensive income | 122,640 | 124,909 | 271,788 | 240,251 |
Comprehensive income (loss) attributable to non-controlling interests | 1,486 | (124) | 1,993 | (312) |
Comprehensive income attributable to MasTec, Inc. | $ 121,154 | $ 125,033 | $ 269,795 | $ 240,563 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 43,095 | $ 27,422 |
Accounts receivable, net (Note 5) | 1,953,340 | 1,923,970 |
Inventories, net | 106,690 | 113,709 |
Prepaid expenses | 40,502 | 56,558 |
Other current assets | 55,069 | 47,330 |
Total current assets | 2,198,696 | 2,168,989 |
Property and equipment, net | 862,923 | 747,808 |
Operating lease assets | 233,423 | 0 |
Goodwill, net | 1,140,874 | 1,100,350 |
Other intangible assets, net | 184,938 | 169,370 |
Other long-term assets | 237,798 | 253,436 |
Total assets | 4,858,652 | 4,439,953 |
Current liabilities: | ||
Current portion of long-term debt, including finance leases | 99,513 | 82,655 |
Current portion of operating lease liabilities | 79,150 | 0 |
Accounts payable | 625,008 | 669,712 |
Accrued salaries and wages | 133,482 | 90,218 |
Other accrued expenses | 139,883 | 133,033 |
Billings in excess of costs and earnings | 156,929 | 227,056 |
Other current liabilities | 100,541 | 80,937 |
Total current liabilities | 1,334,506 | 1,283,611 |
Long-term debt, including finance leases | 1,221,127 | 1,324,223 |
Long-term operating lease liabilities | 159,283 | 0 |
Deferred income taxes | 277,439 | 263,687 |
Other long-term liabilities | 186,993 | 176,408 |
Total liabilities | 3,179,348 | 3,047,929 |
Commitments and contingencies (Note 14) | ||
Equity | ||
Preferred stock, $1.00 par value: authorized shares - 5,000,000; issued and outstanding shares – none | 0 | 0 |
Common stock, $0.10 par value: authorized shares - 145,000,000; issued shares - 91,654,158 and 91,327,009 (including 1,148,043 and 1,251,533 of unvested stock awards) as of September 30, 2019 and December 31, 2018, respectively | 9,165 | 9,133 |
Capital surplus | 804,487 | 789,009 |
Retained earnings | 1,409,793 | 1,118,375 |
Accumulated other comprehensive loss | (82,117) | (60,494) |
Treasury stock, at cost: 15,344,917 and 15,329,817 shares as of September 30, 2019 and December 31, 2018, respectively | (466,727) | (466,125) |
Total MasTec, Inc. shareholders’ equity | 1,674,601 | 1,389,898 |
Non-controlling interests | 4,703 | 2,126 |
Total equity | 1,679,304 | 1,392,024 |
Total liabilities and equity | $ 4,858,652 | $ 4,439,953 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 145,000,000 | 145,000,000 |
Common stock, shares issued | 91,654,158 | 91,327,009 |
Treasury stock, shares | 15,344,917 | 15,329,817 |
Common Stock [Member] | ||
Common stock, shares issued | 91,654,158 | 91,327,009 |
Restricted Stock Awards [Member] | Common Stock [Member] | ||
Unvested stock awards (in shares) | 1,148,043 | 1,251,533 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total MasTec, Inc. Shareholders' Equity [Member] | Non-Controlling Interests [Member] |
Condensed Unaudited Consolidated Statements of Equity | ||||||||
Cumulative effect of adoption, Topic 606 | $ 1,562 | $ 1,562 | $ 1,562 | |||||
Beginning balance, common shares outstanding (in shares) at Dec. 31, 2017 | 90,935,584 | |||||||
Beginning balance at Dec. 31, 2017 | 1,433,353 | $ 9,094 | $ (147,124) | $ 775,387 | 857,154 | $ (63,712) | 1,430,799 | $ 2,554 |
Beginning balance, treasury shares (in shares) at Dec. 31, 2017 | (8,132,811) | |||||||
Condensed Unaudited Consolidated Statements of Equity | ||||||||
Net income (loss) | 227,406 | 227,718 | 227,718 | (312) | ||||
Other comprehensive income (loss) | 12,845 | 12,845 | 12,845 | |||||
Non-cash stock-based compensation | 10,086 | 10,086 | 10,086 | |||||
Issuance (forfeiture) of restricted shares, net (in shares) | 90,807 | |||||||
Issuance (forfeiture) of restricted shares, net | 0 | $ 9 | (9) | 0 | ||||
Other stock issuances, net of shares withheld for taxes (in shares) | 77,680 | |||||||
Other stock issuances, net of shares withheld for taxes | $ 3,016 | $ 7 | 3,009 | 3,016 | ||||
Acquisition of treasury stock, at cost (in shares) | (4,300,000) | (4,307,297) | ||||||
Acquisition of treasury stock, at cost | $ (198,448) | $ (198,448) | (198,448) | |||||
Ending balance, common shares outstanding (in shares) at Sep. 30, 2018 | 91,104,071 | |||||||
Ending balance at Sep. 30, 2018 | 1,489,820 | $ 9,110 | $ (345,572) | 788,473 | 1,086,434 | (50,867) | 1,487,578 | 2,242 |
Ending balance, treasury shares (in shares) at Sep. 30, 2018 | (12,440,108) | |||||||
Beginning balance, common shares outstanding (in shares) at Jun. 30, 2018 | 91,080,280 | |||||||
Beginning balance at Jun. 30, 2018 | 1,430,398 | $ 9,108 | $ (275,435) | 783,825 | 965,768 | (55,234) | 1,428,032 | 2,366 |
Beginning balance, treasury shares (in shares) at Jun. 30, 2018 | (10,835,749) | |||||||
Condensed Unaudited Consolidated Statements of Equity | ||||||||
Net income (loss) | 120,542 | 120,666 | 120,666 | (124) | ||||
Other comprehensive income (loss) | 4,367 | 4,367 | 4,367 | |||||
Non-cash stock-based compensation | 3,515 | 3,515 | 3,515 | |||||
Issuance (forfeiture) of restricted shares, net (in shares) | (5,211) | |||||||
Issuance (forfeiture) of restricted shares, net | 0 | $ (1) | 1 | 0 | ||||
Other stock issuances, net of shares withheld for taxes (in shares) | 29,002 | |||||||
Other stock issuances, net of shares withheld for taxes | $ 1,135 | $ 3 | 1,132 | 1,135 | ||||
Acquisition of treasury stock, at cost (in shares) | (1,600,000) | (1,604,359) | ||||||
Acquisition of treasury stock, at cost | $ (70,137) | $ (70,137) | (70,137) | |||||
Ending balance, common shares outstanding (in shares) at Sep. 30, 2018 | 91,104,071 | |||||||
Ending balance at Sep. 30, 2018 | $ 1,489,820 | $ 9,110 | $ (345,572) | 788,473 | 1,086,434 | (50,867) | 1,487,578 | 2,242 |
Ending balance, treasury shares (in shares) at Sep. 30, 2018 | (12,440,108) | |||||||
Beginning balance, common shares outstanding (in shares) at Dec. 31, 2018 | 91,327,009 | 91,327,009 | ||||||
Beginning balance at Dec. 31, 2018 | $ 1,392,024 | $ 9,133 | $ (466,125) | 789,009 | 1,118,375 | (60,494) | 1,389,898 | 2,126 |
Beginning balance, treasury shares (in shares) at Dec. 31, 2018 | (15,329,817) | (15,329,817) | ||||||
Condensed Unaudited Consolidated Statements of Equity | ||||||||
Net income (loss) | $ 293,411 | 291,418 | 291,418 | 1,993 | ||||
Other comprehensive income (loss) | (21,623) | (21,623) | (21,623) | |||||
Non-cash stock-based compensation | 12,132 | 12,132 | 12,132 | |||||
Issuance (forfeiture) of restricted shares, net (in shares) | 232,499 | |||||||
Issuance (forfeiture) of restricted shares, net | 0 | $ 23 | (23) | 0 | ||||
Other stock issuances, net of shares withheld for taxes (in shares) | 94,650 | |||||||
Other stock issuances, net of shares withheld for taxes | 3,378 | $ 9 | 3,369 | 3,378 | ||||
Acquisition of treasury stock, at cost (in shares) | (15,100) | |||||||
Acquisition of treasury stock, at cost | (602) | $ (602) | (602) | |||||
Contributions from non-controlling interests | $ 584 | 0 | 584 | |||||
Ending balance, common shares outstanding (in shares) at Sep. 30, 2019 | 91,654,158 | 91,654,158 | ||||||
Ending balance at Sep. 30, 2019 | $ 1,679,304 | $ 9,165 | $ (466,727) | 804,487 | 1,409,793 | (82,117) | 1,674,601 | 4,703 |
Ending balance, treasury shares (in shares) at Sep. 30, 2019 | (15,344,917) | (15,344,917) | ||||||
Beginning balance, common shares outstanding (in shares) at Jun. 30, 2019 | 91,626,986 | |||||||
Beginning balance at Jun. 30, 2019 | $ 1,551,338 | $ 9,163 | $ (466,727) | 799,162 | 1,281,198 | (74,675) | 1,548,121 | 3,217 |
Beginning balance, treasury shares (in shares) at Jun. 30, 2019 | (15,344,917) | |||||||
Condensed Unaudited Consolidated Statements of Equity | ||||||||
Net income (loss) | 130,082 | 128,596 | 128,596 | 1,486 | ||||
Other comprehensive income (loss) | (7,442) | (7,442) | (7,442) | |||||
Non-cash stock-based compensation | 4,192 | 4,192 | 4,192 | |||||
Issuance (forfeiture) of restricted shares, net (in shares) | (920) | |||||||
Issuance (forfeiture) of restricted shares, net | 0 | $ 0 | 0 | 0 | ||||
Other stock issuances, net of shares withheld for taxes (in shares) | 28,092 | |||||||
Other stock issuances, net of shares withheld for taxes | $ 1,135 | $ 2 | 1,133 | 1,135 | ||||
Acquisition of treasury stock, at cost (in shares) | 0 | |||||||
Ending balance, common shares outstanding (in shares) at Sep. 30, 2019 | 91,654,158 | 91,654,158 | ||||||
Ending balance at Sep. 30, 2019 | $ 1,679,304 | $ 9,165 | $ (466,727) | $ 804,487 | $ 1,409,793 | $ (82,117) | $ 1,674,601 | $ 4,703 |
Ending balance, treasury shares (in shares) at Sep. 30, 2019 | (15,344,917) | (15,344,917) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 293,411 | $ 227,406 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 174,171 | 156,478 |
Non-cash interest expense, net | 1,691 | 1,836 |
Non-cash stock-based compensation expense | 12,132 | 10,086 |
Provision for deferred income taxes | 8,546 | 51,405 |
Equity in earnings of unconsolidated affiliates | (19,778) | (19,080) |
Gains on sales of assets, net, including fixed assets held-for-sale | (9,627) | (12,021) |
Other non-cash items, net | (1,515) | 5,055 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | 731 | (763,893) |
Inventories | 21,293 | (37,025) |
Other assets, current and long-term portion | 16,641 | 34,495 |
Accounts payable and accrued expenses | (30,641) | 367,938 |
Billings in excess of costs and earnings | (73,231) | (9,432) |
Other liabilities, current and long-term portion | 47,570 | 13,522 |
Net cash provided by operating activities | 441,394 | 26,770 |
Cash flows from investing activities: | ||
Cash paid for acquisitions, net of cash acquired | (94,647) | (6,684) |
Capital expenditures | (85,095) | (134,214) |
Proceeds from sale of property and equipment | 27,102 | 29,676 |
Payments for other investments | (5,589) | (36,330) |
Proceeds from other investments | 14,705 | 5,415 |
Net cash used in investing activities | (143,524) | (142,137) |
Cash flows from financing activities: | ||
Proceeds from credit facilities | 2,185,714 | 2,422,556 |
Repayments of credit facilities | (2,371,965) | (1,997,392) |
Repayments of other borrowings, net | (333) | (15,830) |
Payments of finance lease obligations | (59,045) | (54,560) |
Payments of acquisition-related contingent consideration | (29,267) | (15,929) |
Proceeds from (distributions to) non-controlling interests | 584 | (559) |
Proceeds from stock-based awards, net | 3,380 | 3,086 |
Repurchases of common stock | (5,652) | (198,448) |
Other financing activities, net | (5,459) | 0 |
Net cash (used in) provided by financing activities | (282,043) | 142,924 |
Effect of currency translation on cash | (154) | 601 |
Net increase in cash and cash equivalents | 15,673 | 28,158 |
Cash and cash equivalents - beginning of period | 27,422 | 40,326 |
Cash and cash equivalents - end of period | 43,095 | 68,484 |
Supplemental cash flow information: | ||
Interest paid | 73,570 | 65,788 |
Income tax payments (refunds), net | 73,502 | (12,736) |
Supplemental disclosure of non-cash information: | ||
Additions to property and equipment from finance leases | $ 163,458 | $ 48,498 |
Business, Basis of Presentation
Business, Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Business, Basis of Presentation and Significant Accounting Policies | Note 1 – Business, Basis of Presentation and Significant Accounting Policies Nature of the Business MasTec, Inc. (collectively with its subsidiaries, “MasTec” or the “Company”) is a leading infrastructure construction company operating mainly throughout North America across a range of industries. The Company’s primary activities include the engineering, building, installation, maintenance and upgrade of communications, energy, utility and other infrastructure, such as: wireless, wireline/fiber and customer fulfillment activities; petroleum and natural gas pipeline infrastructure; electrical utility transmission and distribution; power generation, including renewables; heavy civil; and industrial infrastructure. MasTec’s customers are primarily in these industries. MasTec reports its results under five reportable segments: (1) Communications; (2) Oil and Gas; (3) Electrical Transmission; (4) Power Generation and Industrial; and (5) Other. Basis of Presentation The accompanying consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying consolidated balance sheet as of December 31, 2018 is derived from the Company’s audited financial statements as of that date. Because certain information and footnote disclosures have been condensed or omitted, these consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2018 contained in the Company’s 2018 Annual Report on Form 10-K (the “ 2018 Form 10-K”). In management’s opinion, all normal and recurring adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been included. When necessary, certain prior year amounts have been reclassified to conform to the current period presentation. Interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. The Company believes that the disclosures made in these consolidated financial statements are adequate to make the information not misleading. Principles of Consolidation The accompanying consolidated financial statements include MasTec, Inc. and its subsidiaries and include the accounts of all majority owned subsidiaries over which the Company exercises control and, when applicable, entities in which the Company has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. Other parties’ interests in entities that MasTec consolidates are reported as non-controlling interests within equity. Net income or loss attributable to non-controlling interests is reported as a separate line item below net income or loss. The Company’s investments in entities for which the Company does not have a controlling interest, but over which it has the ability to exert significant influence, are accounted for using the equity method of accounting. For equity investees in which the Company has an undivided interest in the assets, liabilities and profits or losses of an unincorporated entity, but the Company does not exercise control over the entity, the Company consolidates its proportional interest in the accounts of the entity. Translation of Foreign Currencies The assets and liabilities of foreign subsidiaries with a functional currency other than the U.S. dollar are translated into U.S. dollars at period-end exchange rates, with resulting translation gains or losses included within other comprehensive income or loss. Revenue and expenses are translated into U.S. dollars at average rates of exchange during the applicable period. Substantially all of the Company’s foreign operations use their local currency as their functional currency. Currency gains or losses resulting from transactions executed in currencies other than the functional currency are included in other income or expense, net. In these consolidated financial statements, “$” means U.S. dollars unless otherwise noted. Management Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based on historical experience and various other assumptions, the results of which form the basis of making judgments about the Company’s operating results and the carrying values of assets and liabilities that are not readily apparent from other sources. Key estimates include: the recognition of revenue and project profit or loss, which the Company defines as project revenue, less project costs of revenue, including project-related depreciation, in particular, on construction contracts accounted for under the cost-to-cost method, for which the recorded amounts require estimates of costs to complete and the amount and probability of variable consideration included in the contract transaction price; fair value estimates, including those related to acquisitions, valuations of goodwill and intangible assets, acquisition-related contingent consideration and equity investments; allowances for doubtful accounts; asset lives used in computing depreciation and amortization; fair values of financial instruments; self-insurance liabilities; other accruals and allowances; income taxes; and the estimated effects of litigation and other contingencies. While management believes that such estimates are reasonable when considered in conjunction with the Company’s consolidated financial position and results of operations taken as a whole, actual results could differ materially from those estimates. Significant Accounting Policies Revenue Recognition The Company recognizes revenue from contracts with customers under Accounting Standards Codification (“ASC”) Topic 606 (“Topic 606”). Under Topic 606, revenue is recognized when, or as, control of promised goods and services is transferred to customers, and the amount of revenue recognized reflects the consideration to which an entity expects to be entitled in exchange for the goods and services transferred. Revenue is primarily recognized by the Company over time utilizing the cost-to-cost measure of progress, which best depicts the continuous transfer of control of goods or services to the customer, and correspondingly, when performance obligations are satisfied for the related contracts. Contracts. The Company derives revenue primarily from construction projects performed under: (i) master and other service agreements, which provide a menu of available services in a specific geographic territory that are utilized on an as-needed basis, and are typically priced using either a time and materials, or a fixed price per unit basis; and (ii) contracts for specific projects requiring the construction and installation of an entire infrastructure system, or specified units within an infrastructure system, which are subject to multiple pricing options, including fixed price, unit price, time and materials, or cost plus a markup. Revenue derived from projects performed under master service and other service agreements totaled 32% of consolidated revenue for both the three month periods ended September 30, 2019 and 2018 , and totaled 35% and 36% for the nine month periods ended September 30, 2019 and 2018 , respectively. For certain master service and other service agreements under which the Company performs installation and maintenance services, primarily for install-to-the-home service providers in its Communications segment, revenue is recognized at a point in time. This is generally when the work order has been fulfilled, which is typically the same day the work is initiated. Point in time revenue accounted for approximately 4% and 6% of consolidated revenue for the three month periods ended September 30, 2019 and 2018 , respectively, and accounted for approximately 5% and 7% for the nine month periods ended September 30, 2019 and 2018 , respectively. Substantially all of the Company’s other revenue is recognized over time. The cost estimation process for recognizing revenue over time under the cost-to-cost method is based on the professional knowledge and experience of the Company’s project managers, engineers and financial professionals. Management reviews estimates of total contract transaction price and total project costs on an ongoing basis. Changes in job performance, job conditions and management’s assessment of expected variable consideration are factors that influence estimates of the total contract transaction price, total costs to complete those contracts and the Company’s profit recognition. Changes in these factors could result in revisions to revenue in the period in which the revisions are determined, which could materially affect the Company’s consolidated results of operations for that period. Provisions for losses on uncompleted contracts are recorded in the period in which such losses are determined. For both the nine month periods ended September 30, 2019 and 2018 , project profit was affected by less than 5% as a result of changes in contract estimates included in projects that were in process as of December 31, 2018 and 2017 . Revenue recognized for the three month periods ended September 30, 2019 and 2018 as a result of changes in revenue estimates, including from variable consideration, from performance obligations satisfied or partially satisfied in prior periods totaled approximately $13.3 million and $72.7 million , respectively, and totaled $52.2 million and $55.6 million for the nine month periods ended September 30, 2019 and 2018 , respectively. The Company may incur certain costs that can be capitalized, such as initial set-up or mobilization costs. Such costs, which are amortized over the life of the respective projects, were not material for the three or nine month periods ended September 30, 2019 and 2018 . Performance Obligations. A performance obligation is a contractual promise to transfer a distinct good or service to a customer, and is the unit of account under Topic 606. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. The vast majority of the Company’s performance obligations are completed within one year . Remaining performance obligations represent the amount of unearned transaction prices under contracts for which work is wholly or partially unperformed, including the Company’s share of unearned transaction prices from its proportionately consolidated non-controlled joint ventures. As of September 30, 2019 , the amount of the Company’s remaining performance obligations was $6.0 billion . The Company expects to recognize approximately $1.3 billion of its remaining performance obligations as revenue during 2019 , with the majority of the remaining balance to be recognized in 2020 . Variable Consideration. Transaction prices for the Company’s contracts may include variable consideration, which comprises items such as change orders, claims and incentives. Management estimates variable consideration for a performance obligation utilizing estimation methods that it believes best predict the amount of consideration to which the Company will be entitled. Management’s estimates of variable consideration and the determination of whether to include estimated amounts in transaction prices are based largely on engineering studies and legal opinions, past practices with the customer, specific discussions, correspondence or preliminary negotiations with the customer and all other relevant information that is reasonably available at the time of the estimate. To the extent unapproved change orders, claims and other variable consideration reflected in transaction prices are not resolved in the Company’s favor, or to the extent incentives reflected in transaction prices are not earned, there could be reductions in, or reversals of, previously recognized revenue. As of September 30, 2019 and December 31, 2018 , the Company included approximately $26 million and $56 million , respectively, of change orders and/or claims in transaction prices for certain contracts that were in the process of being resolved in the ordinary course of business, including through negotiation, arbitration and other proceedings. These transaction price adjustments are included within costs and earnings in excess of billings or accounts receivable, net of allowance, as appropriate. As of both September 30, 2019 and December 31, 2018 , these change orders and/or claims were primarily related to certain projects in the Company’s Oil and Gas segment. The Company actively engages with its customers to complete the final approval process, and generally expects these processes to be completed within one year . Amounts ultimately realized upon final acceptance by customers could be higher or lower than such estimated amounts. Recently Issued Accounting Pronouncements See the recent accounting pronouncements discussion below for information pertaining to the effects of recently adopted and other recent accounting pronouncements, as updated from the discussion in the Company’s 2018 Form 10-K. Accounting Pronouncements Adopted in 2019 Leases. I n February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) , which, together with its related clarifying ASUs (collectively, “ASU 2016-02”), provided revised guidance for lease accounting and related disclosure requirements, including a requirement for lessees to recognize right-of-use assets and lease liabilities on the balance sheet for leases with durations greater than twelve months. Under ASU 2016-02, leases are classified by lessees as either finance or operating leases. Lease expense is recognized based on an effective interest method for finance leases, and on a straight-line basis over the term of the lease for operating leases. The Company adopted ASU 2016-02 using the modified retrospective method during the first quarter of 2019, without adjusting comparative periods in the financial statements. The most significant effect of the new guidance was the recognition of operating lease right-of-use assets and a liability for operating leases. The accounting for finance leases (or, under previous guidance, capital leases) was substantially unchanged. The Company elected to utilize the package of practical expedients that allowed entities to: (1) not reassess whether any expired or existing contracts were or contained leases; (2) retain the existing classification of lease contracts as of the date of adoption; (3) not reassess initial direct costs for any existing leases; and (4) not separate non-lease components for all classes of leased assets. The Company recognized approximately $230 million of lease assets and liabilities for operating leases upon adoption of ASU 2016-02. The adoption of Topic 842 did not have a material effect on the Company's results of operations or cash flows. For additional information about the Company’s leases, see Note 8 - Lease Obligations . Reclassification of Tax Effects from Other Comprehensive Income. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”) . ASU 2018-02, which the Company adopted during the first quarter of 2019, permitted entities to reclassify the tax effects related to the change in the federal tax rate as a result of the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) from accumulated other comprehensive income to retained earnings. The Company elected not to reclassify these tax effects, therefore, this ASU had no effect on its consolidated financial statements. Other Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . This ASU, together with its related clarifying ASUs (collectively, “ASU 2016-13”), introduced an expected credit loss methodology for the measurement and recognition of credit losses on most financial assets, including trade and financing receivables. The current expected credit loss methodology, which is based on historical experience, current conditions and reasonable and supportable forecasts, replaces the probable/incurred loss model for measuring and recognizing expected losses under current GAAP, and could result in earlier recognition of credit losses. ASU 2016-13 also requires enhanced disclosures pertaining to significant estimates and judgments used in estimating credit losses under the current expected credit loss methodology. ASU 2016-13 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with the cumulative effect of adoption recorded as an adjustment to retained earnings, if applicable. ASU 2016-13, which the Company will adopt in the first quarter of 2020, is not expected to have a material effect on the Company’s consolidated financial statements. The Company is currently evaluating updates to its processes and controls in preparation for adoption of this ASU. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2 – Earnings Per Share Basic earnings or loss per share is computed by dividing net income attributable to MasTec by the weighted average number of common shares outstanding for the period, which excludes non-participating unvested restricted share awards. Diluted earnings per share is computed by dividing net income attributable to MasTec by the weighted average number of fully diluted shares, as calculated under the treasury stock method, which includes the potential effect of dilutive common stock equivalents, such as issued but unvested restricted shares. If the Company reports a loss, rather than income, the computation of diluted loss per share excludes the effect of dilutive common stock equivalents, as their effect would be anti-dilutive. The following table provides details underlying the Company’s earnings per share calculations for the periods indicated (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Net income attributable to MasTec: Net income - basic and diluted (a) $ 128,596 $ 120,666 $ 291,418 $ 227,718 Weighted average shares outstanding: Weighted average shares outstanding - basic 75,217 78,096 75,131 79,399 Dilutive common stock equivalents 717 1,105 629 1,085 Weighted average shares outstanding - diluted 75,934 79,201 75,760 80,484 (a) Calculated as total net income less amounts attributable to non-controlling interests. See Note 11 - Equity for details pertaining to share repurchase activity under the Company’s share repurchase programs. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 3 – Goodwill and Other Intangible Assets The following table provides balances for goodwill by reportable segment as of September 30, 2019 (in millions): Communications Oil and Gas Electrical Transmission Power Generation and Industrial Total Goodwill Goodwill, gross $ 472.6 $ 494.6 $ 149.9 $ 143.1 $ 1,260.2 Accumulated impairment loss — (119.3 ) — — (119.3 ) Goodwill, net $ 472.6 $ 375.3 $ 149.9 $ 143.1 $ 1,140.9 For the nine month period ended September 30, 2019 , goodwill included additions of $40.3 million from new business combinations and a net decrease of $0.2 million from measurement period adjustments. For the nine month period ended September 30, 2019 , currency translation effects related to goodwill and accumulated impairment losses totaled approximately $3.7 million of gains and $3.3 million of losses , respectively. The following table provides a reconciliation of changes in other intangible assets, net, for the period indicated (in millions): Other Intangible Assets Non-Amortizing Amortizing Trade Names Pre-Qualifications Customer Relationships and Backlog Other (a) Total Other intangible assets, gross, as of December 31, 2018 $ 34.5 $ 74.0 $ 224.4 $ 21.1 $ 354.0 Accumulated amortization (170.0 ) (14.6 ) (184.6 ) Other intangible assets, net, as of December 31, 2018 $ 34.5 $ 74.0 $ 54.4 $ 6.5 $ 169.4 Additions from new business combinations — — 27.0 1.6 28.6 Measurement period adjustments (b) — — (0.3 ) — (0.3 ) Amortization expense (12.9 ) (1.3 ) (14.2 ) Currency translation adjustments — 1.3 0.1 0.0 1.4 Other intangible assets, net, as of September 30, 2019 $ 34.5 $ 75.3 $ 68.3 $ 6.8 $ 184.9 (a) Consists principally of trade names and non-compete agreements. (b) Represents adjustments to preliminary estimates of fair value within the measurement period of up to one year from the date of acquisition. Amortization expense associated with intangible assets for the three month periods ended September 30, 2019 and 2018 totaled $4.7 million and $5.2 million , respectively, and for the nine month periods ended September 30, 2019 and 2018 , totaled $14.2 million and $15.4 million , respectively. 2019 Acquisitions. For the nine month period ended September 30, 2019 , MasTec completed three acquisitions, one of which is in the Company’s Oil and Gas segment, and two o f which are included within the Company’s Communications segment . The aggregate purchase price for these entities was composed of approximately $89 million in cash, net of cash acquired, plus earn-out liabilities valued at approximately $16 million as of September 30, 2019 , for which the earn-out periods range from three to five years. As of September 30, 2019 , the range of remaining potential undiscounted earn-out liabilities for the 2019 acquisitions was estimated to be up to $40 million ; however, there is no maximum payment amount. Determination of the estimated fair values of the net assets acquired and the estimated earn-out liabilities for these acquisitions was preliminary as of September 30, 2019 ; as a result, further adjustments to these estimates may occur. 2018 Acquisitions. In 2018, MasTec acquired all of the equity interests in a construction management firm specializing in steel building systems and acquired a wind turbine services company, both of which are included in the Company’s Power Generation and Industrial segment. The aggregate purchase price for these entities was composed of approximately $5.1 million in cash, net of cash acquired, and estimated earn-out liabilities, net, totaling $1.5 million as of September 30, 2019 . As of September 30, 2019 , the range of remaining potential undiscounted earn-out liabilities, net, for the 2018 acquisitions was estimated to be up to $5 million ; however, there is no maximum payment amount. Pro Forma Financial Information and Acquisition Results. For the three month periods ended September 30, 2019 and 2018 , unaudited supplemental pro forma revenue totaled approximately $2,015.3 million and $2,030.3 million , respectively, and unaudited supplemental pro forma net income totaled approximately $127.8 million and $122.9 million , respectively. For the nine month periods ended September 30, 2019 and 2018 , unaudited supplemental pro forma revenue totaled approximately $5,474.0 million and $5,139.6 million , respectively, and unaudited supplemental pro forma net income totaled approximately $293.7 million and $235.7 million , respectively. These unaudited pro forma financial results include the results of operations of acquired companies as if those companies had been consolidated as of the beginning of the year prior to their acquisition and are provided for illustrative purposes only. These unaudited pro forma financial results do not purport to be indicative of the actual results that would have been achieved by the combined companies for the periods indicated, or of the results that may be achieved by the combined companies in the future. The Company’s unaudited pro forma financial results were prepared by adding the unaudited historical results of acquired businesses to the historical results of MasTec, and then adjusting those combined results for (i) acquisition costs; (ii) amortization expense from acquired intangible assets; (iii) interest expense from cash consideration paid; (iv) interest expense from debt repaid upon acquisition; and (iv) other purchase accounting related adjustments. These unaudited pro forma financial results do not include adjustments to reflect other cost savings or synergies that may have resulted from these acquisitions. Future results may vary significantly due to future events and other factors, many of which are beyond the Company’s control. For the three and nine month periods ended September 30, 2019 , the Company’s consolidated results of operations included acquisition-related revenue of approximately $41.7 million and $116.9 million , respectively. For the three month period ended September 30, 2019 , acquisition-related net income totaled approximately $1.5 million , and for the nine month period ended September 30, 2019 , acquisition-related net loss totaled approximately $5.9 million , respectively, based on the Company’s consolidated effective tax rates. For the three and nine month periods ended September 30, 2018 , the Company’s consolidated results of operations included acquisition-related revenue of approximately $18.4 million and $141.0 million , respectively. For the three month period ended September 30, 2018 , acquisition-related net loss totaled approximately $0.9 million , and for the nine month period ended September 30, 2018 , acquisition-related net income totaled $1.9 million , based on the Company’s consolidated effective tax rates. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 4 – Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, accounts and notes receivable, cash collateral deposited with insurance carriers, life insurance assets, equity investments, deferred compensation plan assets and liabilities, accounts payable and other current liabilities, acquisition-related contingent consideration and debt obligations. Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value guidance establishes a valuation hierarchy, which requires maximizing the use of observable inputs when measuring fair value. The three levels of inputs that may be used are: (i) Level 1 - quoted market prices in active markets for identical assets or liabilities; (ii) Level 2 - observable market-based inputs or other observable inputs; and (iii) Level 3 - significant unobservable inputs that cannot be corroborated by observable market data, which are generally determined using valuation models incorporating management estimates of market participant assumptions. Acquisition-Related Contingent Consideration Acquisition-related contingent consideration, or “earn-outs,” represent the estimated fair value of future amounts payable for acquisitions of businesses and other interests. Acquisition-related contingent consideration amounts are based on Level 3 inputs, including management’s estimates and entity-specific assumptions, and are evaluated on an ongoing basis. As of September 30, 2019 and December 31, 2018 , the estimated fair value of the Company’s earn-out liabilities totaled $151.9 million and $118.1 million , respectively, of which $57.5 million and $29.6 million , respectively, was included within other current liabilities. The fair value of the Company’s earn-out liabilities is estimated using income approaches such as discounted cash flows or option pricing models, which incorporate significant inputs not observable in the market. Key assumptions include the discount rate and probability-weighted projections of earnings before interest, taxes, depreciation and amortization (“EBITDA”). Significant changes in any of these assumptions could result in significantly higher or lower potential earn-out liabilities. As of September 30, 2019 , the range of potential undiscounted earn-out liabilities was estimated to be between $48 million and $225 million ; however, there is no maximum payment amount. Acquisition-related contingent consideration activity consists primarily of additions from new business combinations; changes in the expected fair value of future earn-out obligations; and payments. Measurement period adjustments for earn-out liabilities, which are fair value adjustments relating to new information obtained about the facts and circumstances existing as of the date of acquisition for a period of up to one year, are recorded to goodwill. Other revisions to the expected fair values of future earn-out liabilities are reflected as income or expense, as appropriate. Payments of acquisition-related contingent consideration, to the extent they relate to estimated liabilities as of the date of acquisition, are reflected within financing activities in the consolidated statements of cash flows. Payments in excess of acquisition date liabilities are classified within operating activities. There were no additions from new business combinations for the three month periods ended September 30, 2019 or 2018 , and for the nine month periods ended September 30, 2019 and 2018 , additions totaled $16.2 million and $1.5 million , respectively. Fair value adjustments related to acquisition-related contingent consideration totaled net increases of approximately $11.2 million and $47.6 million , respectively, for the three and nine month periods ended September 30, 2019 , and related primarily to businesses in the Company’s Oil and Gas and Communications segments. Fair value adjustments, including those related to finalization of completed earn-out arrangements, totaled net increases of approximately $5.9 million and $10.3 million for the three and nine month periods ended September 30, 2018 , respectively, and related primarily to businesses in the Company’s Oil and Gas and Communications segments. For the three and nine month periods ended September 30, 2018 , measurement period adjustments totaled increases of approximately $2.2 million and $4.2 million , net, respectively, and related primarily to businesses in the Company’s Oil and Gas and Power Generation and Industrial segments. There were no payments of acquisition-related contingent consideration in either of the three month periods ended September 30, 2019 or 2018 . Payments of acquisition-related contingent consideration totaled $30.0 million and $23.1 million for the nine month periods ended September 30, 2019 and 2018 , respectively. Equity Investments The Company’s equity investments as of September 30, 2019 include: (i) the Company’s 33% equity interests in Trans-Pecos Pipeline, LLC (“TPP”) and Comanche Trail Pipeline, LLC (“CTP,” and together with TPP, the “Waha JVs”), which are accounted for as equity method investments; (ii) a $15 million investment in Cross Country Infrastructure Services, Inc. (“CCI”); (iii) the Company’s interests in certain proportionately consolidated non-controlled contractual joint ventures; (iv) the Company’s equity interests in Pensare Acquisition Corp. (“Pensare”); and (v) certain other equity investments. See Note 15 - Related Party Transactions for additional information related to certain of the Company’s equity investments. Investment Arrangements . From time to time, the Company may participate in selected investment or strategic arrangements, including equity interests in various business entities and participation in contractual joint ventures, some of which may involve the extension of loans or other types of financing arrangements. As of September 30, 2019 , the Company determined that certain of its investment arrangements were variable interest entities (“VIEs”). The Company does not, however, have the power to direct the primary activities that most significantly impact the economic performance of these VIEs and the Company is not the primary beneficiary; accordingly, it has not consolidated these VIEs. Equity investments, other than those accounted for as equity method investments or those that are proportionately consolidated, are measured at fair value if their fair values are readily determinable. Equity investments that do not have readily determinable fair values are measured at cost, adjusted for changes from observable market transactions, less impairment (“adjusted cost basis”). As of September 30, 2019 and December 31, 2018 , the aggregate carrying value of the Company’s equity investments totaled approximately $184 million and $197 million , respectively, including approximately $18 million of equity investments measured on an adjusted cost basis as of both September 30, 2019 and December 31, 2018 . There were no impairments of, or material changes in the fair value of these investments during either of the nine month periods ended September 30, 2019 or 2018 . The Waha JVs. The Waha JVs own and operate two pipelines and a header system that transport natural gas to the Mexican border for export. For both the three month periods ended September 30, 2019 and 2018 , the Company made no equity contributions to the Waha JVs, and for the nine month periods ended September 30, 2019 and 2018 , the Company made equity contributions totaling $1.3 million and $24.5 million , respectively. Equity in earnings related to the Company’s proportionate share of income from the Waha JVs, which is included within the Company’s Other segment, totaled approximately $6.9 million and $7.7 million for the three month periods ended September 30, 2019 and 2018 , respectively, and totaled $19.8 million and $19.1 million for the nine month periods ended September 30, 2019 and 2018 , respectively. Cumulative undistributed earnings from the Waha JVs, which represents cumulative equity in earnings for the Waha JVs less distributions of earnings, totaled $42.2 million as of September 30, 2019 . Distributions of earnings from the Waha JVs, which are included within operating cash flows, totaled $1.5 million and $3.2 million for the three month periods ended September 30, 2019 and 2018 , respectively, and totaled $7.5 million and $10.9 million for the nine month periods ended September 30, 2019 and 2018 , respectively. The Company’s net investment in the Waha JVs, which differs from its proportionate share of the net assets of the Waha JVs due primarily to capitalized investment costs, totaled approximately $162 million and $168 million as of September 30, 2019 and December 31, 2018 , respectively. The Waha JVs are party to separate non-recourse financing facilities, each of which are secured by pledges of the equity interests in the respective entities, as well as a first lien security interest over virtually all of their assets. The Waha JVs are also party to certain interest rate swaps, which are accounted for as qualifying cash flow hedges. The Company reflects its proportionate share of any unrealized fair market value gains or losses from fluctuations in interest rates associated with these swaps within other comprehensive income or loss, as appropriate. For the three and nine month periods ended September 30, 2019 , the Company’s proportionate share of unrecognized unrealized activity on these interest rate swaps totaled losses of approximately $9.4 million and $28.2 million , respectively, or $7.1 million and $21.3 million , net of tax, respectively. For the three and nine month periods ended September 30, 2018 , the Company’s proportionate share of unrecognized unrealized activity on these interest rate swaps totaled gains of approximately $4.1 million and $18.1 million , respectively, or $3.1 million and $13.8 million , net of tax, respectively. Other Investments. During the third quarter of 2017, the Company paid $2.0 million for approximately 4% of the common stock of Pensare and warrants to purchase 2.0 million shares of Pensare common stock, which is a special purpose acquisition company focusing on transactions in the telecommunications industry. José R. Mas, MasTec’s Chief Executive Officer, is a director of Pensare. The shares of common stock purchased by MasTec are not transferable or salable until one year after Pensare successfully completes a business combination transaction, with limited exceptions, as specified in the agreement. The warrants are exercisable at a purchase price of $11.50 per share after Pensare successfully completes a business combination transaction. Both the warrants and the shares contain an expiration and/or forfeiture clause without the successful completion of a business combination transaction, for which the completion date was extended from August 1, 2019 to December 1, 2019 in the third quarter of 2019. On July 25, 2019, Pensare entered into a business combination agreement with Stratos Management Systems, Inc. and its operating companies, which do business as Computex Technology Solutions (collectively, “Computex”), an information technology service provider, the completion of which is pending shareholder approval. Pensare also announced that it has entered into a non-binding letter of intent to acquire a separate company that provides information technology services. During the nine month period ended September 30, 2019 , certain holders of Pensare’s redeemable common stock elected to redeem their shares, the effect of which was to increase the Company’s ownership interest in Pensare to approximately 21% . The Company does not have the ability to exert significant influence over the operating and financial policies of Pensare, therefore, the shares are measured on an adjusted cost basis. The warrants, which are derivative financial instruments, and the shares, are both included within other long-term assets in the Company’s consolidated financial statements as of September 30, 2019 . Due to the nature of the restrictions, the fair value of the shares is not readily determinable. The fair value of the warrants is determined based on observable and unobservable Level 3 inputs, including market volatility and the rights and obligations of the warrants. For both the three and nine month periods ended September 30, 2019 and 2018 , there were no material changes in the fair value of the Company’s investment in Pensare. During the second quarter of 2018, the Company invested $10.0 million for an equity interest of approximately 40% in LifeShield, LLC (“LifeShield”), a home security company, which was measured under the fair value option. As of December 31, 2018 , the fair value of this investment was determined to approximate its purchase price. In February 2019, the Company sold its equity interest in LifeShield for approximately $11 million , subject to customary escrow arrangements. Senior Notes As of both September 30, 2019 and December 31, 2018 , the gross carrying amount of the Company’s 4.875% senior notes due March 15, 2023 (the “ 4.875% Senior Notes”), which are measured at fair value on a non-recurring basis, totaled $400 million . As of September 30, 2019 and December 31, 2018 , the estimated fair value of the 4.875% Senior Notes, based on Level 1 inputs, totaled $407.5 million and $392.0 million |
Accounts Receivable, Net of All
Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities | Note 5 – Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities The following table provides details of accounts receivable, net of allowance and contract assets (together, “accounts receivable, net”) as of the dates indicated (in millions): September 30, December 31, Contract billings $ 745.5 $ 687.6 Less allowance for doubtful accounts (14.3 ) (16.3 ) Accounts receivable, net of allowance $ 731.2 $ 671.3 Retainage 372.3 230.2 Costs and earnings in excess of billings 849.8 1,022.5 Retainage and costs and earnings in excess of billings (together, “contract assets”) $ 1,222.1 $ 1,252.7 Accounts receivable, net $ 1,953.3 $ 1,924.0 Contract billings represent the amount of performance obligations that have been billed but not yet collected. Contract assets consist of costs and earnings in excess of billings (“CIEB”) and retainage. CIEB, which is also referred to as work in process, represents the estimated value of unbilled work for projects with performance obligations recognized over time. Retainage represents a portion of the contract amount that has been billed, but for which the contract allows the customer to retain a portion of the billed amount until final contract settlement (generally, from 5% to 10% of contract billings). Retainage is not considered to be a significant financing component because the intent is to protect the customer. CIEB and retainage amounts are generally classified as current assets within the Company’s consolidated balance sheets. The decrease in the CIEB balance for the nine month period ended September 30, 2019 was driven largely by timing of billings and collections for long-haul project activity in the Company’s Oil and Gas segment. Retainage that has been billed, but is not due until completion of performance and acceptance by customers, is generally expected to be collected within one year . Accounts receivable balances expected to be collected beyond one year are recorded within other long-term assets. Provisions for doubtful accounts for the nine month periods ended September 30, 2019 and 2018 totaled $1.3 million and $3.5 million , respectively, and impairment losses on contract assets were not material. Under certain contracts, the Company may be entitled to invoice the customer and receive payments in advance of performing the related contract work. In those instances, the Company recognizes a liability for advance billings in excess of revenue recognized, which is referred to as billings in excess of costs and earnings (“BIEC”). BIEC is not considered to be a significant financing component because it is generally used to meet working capital demands that can be higher in the early stages of a contract. Contract liabilities consist primarily of such BIEC, which is generally classified within current liabilities on the Company’s consolidated balance sheets. BIEC totaled approximately $156.9 million and $227.1 million as of September 30, 2019 and December 31, 2018 , respectively. For the three and nine month periods ended September 30, 2019 , the Company recognized revenue of approximately $24.1 million and $189.0 million , respectively, related to amounts that were included in BIEC as of December 31, 2018 , resulting primarily from the advancement of physical progress on the respective projects during the period, and for the three and nine month periods ended September 30, 2018 , the Company recognized revenue of approximately $25.4 million and $125.6 million , respectively, related to amounts that were included in BIEC as of December 31, 2017 . Contract liabilities also include the amount of any accrued project losses, which are classified within other current liabilities on the Company’s consolidated balance sheets. Total contract liabilities, including accrued project losses, totaled approximately $183.5 million and $231.6 million as of September 30, 2019 and December 31, 2018 , respectively. The Company is party to non-recourse financing arrangements in the ordinary course of business, under which certain receivables are settled with the customer’s bank in return for a nominal fee. These arrangements, under which amounts can vary based on levels of activity, interest rates and changes in customer payment terms, improve the collection cycle time of the related receivables. Cash collected from these arrangements is reflected within cash provided by operating activities in the consolidated statements of cash flows. The discount charge, which is included within interest expense, net, totaled approximately $2.4 million and $3.2 million for the three month periods ended September 30, 2019 and 2018 , respectively, and totaled $8.1 million and $8.2 million for the nine month periods ended September 30, 2019 and 2018 , respectively. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note 6 – Property and Equipment, Net The following table provides details of property and equipment, net, including property and equipment held under finance leases as of the dates indicated (in millions): September 30, December 31, Land $ 4.6 $ 4.6 Buildings and leasehold improvements 35.0 30.3 Machinery and equipment 1,584.7 1,391.8 Office furniture and equipment 181.3 166.7 Construction in progress 31.2 20.1 Total property and equipment $ 1,836.8 $ 1,613.5 Less accumulated depreciation and amortization (973.9 ) (865.7 ) Property and equipment, net $ 862.9 $ 747.8 The gross amount of capitalized internal-use software, which is included within office furniture and equipment, totaled $126.9 million and $122.0 million as of September 30, 2019 and December 31, 2018 , respectively. Capitalized internal-use software, net of accumulated amortization, totaled $25.1 million and $26.5 million as of September 30, 2019 and December 31, 2018 , respectively. Depreciation and amortization expense associated with property and equipment for the three month periods ended September 30, 2019 and 2018 totaled $50.5 million and $49.7 million , respectively, and totaled $160.0 million and $141.0 million for the nine month periods ended September 30, 2019 and 2018 , respectively. Accrued capital expenditures, the effects of which are excluded from capital expenditures in the Company’s consolidated statements of cash flows given their non-cash nature, totaled $8.0 million and $4.0 million as of September 30, 2019 and December 31, 2018 , respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 7 – Debt The following table provides details of the carrying values of debt as of the dates indicated (in millions): Description Maturity Date September 30, December 31, Senior secured credit facility: September 19, 2024 Revolving loans $ 251.1 $ 456.9 Term loan 400.0 376.9 4.875% Senior Notes March 15, 2023 400.0 400.0 Finance lease and other obligations 282.6 183.2 Total long-term debt obligations $ 1,333.7 $ 1,417.0 Less unamortized deferred financing costs (13.1 ) (10.1 ) Total debt, net of deferred financing costs $ 1,320.6 $ 1,406.9 Current portion of long-term debt 99.5 82.7 Long-term debt $ 1,221.1 $ 1,324.2 Senior Secured Credit Facility The Company has a senior secured credit facility (the “Credit Facility”), which was amended and restated on September 19, 2019 (the “amended Credit Facility”). The amended Credit Facility, which has a maturity date of September 19, 2024 , increased the Company’s aggregate borrowing commitments from approximately $1.5 billion to $1.75 billion as of September 30, 2019 , which amount is composed of $1.35 billion of revolving commitments and a term loan in the aggregate principal amount of $400 million . As of September 30, 2019, term loans in the aggregate principal amount of $400 million were drawn under the amended Credit Facility. The term loan is subject to amortization in quarterly principal installments of $2.5 million commencing in December 2020, which amount will increase to $5.0 million commencing in December 2021. Quarterly principal installments on the term loan are subject to adjustment, if applicable, for certain prepayments. The amended Credit Facility allows the Company to borrow either in Canadian dollars and/or Mexican pesos, up to an aggregate equivalent amount of $300 million . The maximum amount available for letters of credit under the amended Credit Facility is $650 million , of which up to $200 million can be denominated in either Canadian dollars and/or Mexican pesos. The amended Credit Facility also provides for swing line loans of up to $125 million , and, subject to certain conditions, the Company has the option to increase revolving commitments and/or establish additional term loan tranches equal to the Incremental Facilities Limit (as defined in the amended Credit Facility). Subject to the terms and conditions described in the amended Credit Facility, these additional term loan tranches may rank equal or junior in respect of right of payment and/or collateral to the amended Credit Facility, and may, subject to certain limitations in the amended Credit Facility, have terms that differ from the amended Credit Facility. Borrowings under the amended Credit Facility are used for working capital requirements, capital expenditures and other corporate purposes, including equity investments, potential acquisitions or other strategic arrangements, the repurchase or prepayment of indebtedness, share repurchases and repayment of the term loan under the Company’s previous Credit Facility. Outstanding revolving loans and the term loan under the amended Credit Facility bear interest, at the Company’s option, at a rate equal to either (a) a Eurocurrency Rate, as defined in the amended Credit Facility, plus a margin of 1.25% to 1.75% (under the previous Credit Facility, the margin was from 1.25% to 2.00% ), or (b) a Base Rate, as defined in the amended Credit Facility, plus a margin of 0.25% to 0.75% (under the previous Credit Facility the margin was 0.25% to 1.00% ). The Base Rate equals the highest of (i) the Federal Funds Rate, as defined in the amended Credit Facility, plus 0.50% , (ii) Bank of America’s prime rate, and (iii) the Eurocurrency Rate plus 1.00% . Financial standby letters of credit and commercial letters of credit issued under the amended Credit Facility are subject to a letter of credit fee of 1.25% to 1.75% (under the previous Credit Facility, the letter of credit fee was from 1.25% to 2.00% ), and performance standby letters of credit issued under the amended Credit Facility are subject to a letter of credit fee of 0.375% to 0.75% (under the previous Credit Facility, the letter of credit fee was from 0.50% to 1.00% ). The Company must also pay a commitment fee to the lenders of 0.20% to 0.30% on any unused availability under the amended Credit Facility (under the previous Credit Facility, the fee was from 0.20% to 0.40% ). In each of the foregoing cases, the applicable margin or fee is based on the Company’s Consolidated Leverage Ratio, as defined in the amended Credit Facility, as of the then most recent fiscal quarter. As of September 30, 2019 and December 31, 2018 , outstanding revolving loans, which included $116 million and $128 million , respectively, of borrowings denominated in foreign currencies, accrued interest at weighted average rates of approximately 3.417% and 4.234% per annum, respectively. The term loan accrued interest at a rate of 3.419% and 4.272% as of September 30, 2019 and December 31, 2018 , respectively. Letters of credit of approximately $102.2 million and $88.2 million were issued as of September 30, 2019 and December 31, 2018 , respectively. As of September 30, 2019 and December 31, 2018 , letter of credit fees accrued at 0.500% and 0.875% per annum, respectively, for performance standby letters of credit, and at 1.375% and 1.750% per annum, respectively, for financial standby letters of credit. Outstanding letters of credit mature at various dates and most have automatic renewal provisions, subject to prior notice of cancellation. As of September 30, 2019 and December 31, 2018 , availability for revolving loans totaled $996.7 million and $554.9 million , respectively, or up to $547.8 million and $554.9 million , respectively, for new letters of credit. Revolving loan borrowing capacity included $183.9 million and $91.9 million of availability in either Canadian dollars or Mexican pesos as of September 30, 2019 and December 31, 2018 , respectively. The unused facility fee as of September 30, 2019 and December 31, 2018 accrued at a rate of 0.225% and 0.350% , respectively. The amended Credit Facility is guaranteed by certain subsidiaries of the Company (the “Guarantor Subsidiaries”) and the obligations under the amended Credit Facility are secured by substantially all of the Company’s and the Guarantor Subsidiaries’ respective assets, subject to certain exceptions. Under the amended Credit Facility, if the Loan Party EBITDA, as defined, as of the last four consecutive fiscal quarters does not represent at least 80% of the Adjusted Consolidated EBITDA, as defined in the amended Credit Facility, for such period, then the Company must designate additional subsidiaries as Guarantor Subsidiaries, and cause them to join the applicable guaranty and security agreements to the amended Credit Facility. Additionally, any domestic subsidiary with consolidated EBITDA of at least 15% of the Adjusted Consolidated EBITDA must become a Guarantor Subsidiary and join the applicable guaranty and security agreements. The amended Credit Facility requires that the Company maintain a maximum Consolidated Leverage Ratio, as defined in the amended Credit Facility, of 3.50 times (subject to the Acquisition Adjustment described below). The amended Credit Facility also requires that the Company maintain a minimum Consolidated Interest Coverage Ratio, as defined in the amended Credit Facility, of 3.00 times. The amended Credit Facility provides that, for purposes of calculating the Consolidated Leverage Ratio, funded indebtedness excludes undrawn standby performance letters of credit and is further reduced by unrestricted cash over certain thresholds. Additionally, notwithstanding the terms discussed above, subject to certain conditions, if a Permitted Acquisition, as defined in the Credit Facility, or series of Permitted Acquisitions having consideration exceeding $100 million occurs during a fiscal quarter, the maximum Consolidated Leverage Ratio may be temporarily increased to up to 4.00 times during such fiscal quarter and the subsequent four fiscal quarters (the “Acquisition Adjustment”). Such right may be exercised no more than two times during the term of the amended Credit Facility. Subject to customary exceptions, the amended Credit Facility limits the Borrowers’ (as defined in the Credit Facility) and the Guarantor Subsidiaries’ ability to engage in certain activities, including acquisitions, mergers and consolidations, debt incurrence, investments, asset sales, debt prepayments, lien incurrence and the making of cash distributions or repurchases of the Company’s common stock. However, distributions payable solely in common stock are not restricted. The amended Credit Facility provides for customary events of default and carries cross-default provisions with the Company’s other significant debt instruments, including the Company’s indemnity agreement with its surety provider, as well as customary remedies, including the acceleration of repayment of outstanding amounts and other remedies with respect to the collateral securing the amended Credit Facility obligations. Other Credit Facilities . The Company has other credit facilities that support: (i) the working capital requirements of its foreign operations, and (ii) certain letter of credit issuances. As of both September 30, 2019 and December 31, 2018 , there were no borrowings under the Company’s other credit facilities. Additionally, the Company has a credit facility under which it may issue up to $50.0 million of performance standby letters of credit. As of both September 30, 2019 and December 31, 2018 , letters of credit issued under this facility totaled $40.2 million , and accrued fees at 0.50% and 0.75% , respectively, per annum. The Company’s other credit facilities are subject to customary provisions and covenants. Debt Guarantees and Covenants The 4.875% Senior Notes are senior unsecured unsubordinated obligations and rank equal in right of payment with existing and future unsubordinated debt, and rank senior in right of payment to existing and future subordinated debt and are fully and unconditionally guaranteed on an unsecured, unsubordinated, joint and several basis by certain of the Company’s existing and future 100%-owned direct and indirect domestic subsidiaries that are each guarantors of the Credit Facility or other outstanding indebtedness. See Note 16 - Supplemental Guarantor Condensed Consolidating Financial Information . MasTec was in compliance with the provisions and covenants of its outstanding debt instruments as of September 30, 2019 and December 31, 2018 . Additional Information As of September 30, 2019 and December 31, 2018 , accrued interest payable, which is recorded within other accrued expenses in the consolidated balance sheets, totaled $1.6 million and $7.4 million , respectively. For additional information pertaining to the Company’s debt instruments, including its 4.875% Senior Notes, see Note 7 - Debt in the Company’s 2018 Form 10-K. |
Lease Obligations
Lease Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease Obligations | Note 8 – Lease Obligations See Note 1 - Business, Basis of Presentation and Significant Accounting Policies for information pertaining to the Company’s adoption of ASU 2016-02, Leases (Topic 842). In the ordinary course of business, the Company enters into agreements that provide financing for machinery and equipment and for other of its facility, vehicle and equipment needs, including related party leases. The Company reviews all agreements to determine if a leasing arrangement exists. When a leasing arrangement is identified, a determination is made at inception as to whether the lease is an operating or a finance lease. A lease exists when a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining whether a lease exists, the Company considers whether a contract provides both the right to obtain substantially all of the economic benefits from the use of an asset and the right to direct the use of the asset. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of the minimum future lease payments over the expected term of the lease. The Company’s lease assets are primarily concentrated in vehicles, machinery and equipment. Leases with an initial term of twelve months or less are classified as short-term leases and are not recognized in the consolidated balance sheets unless the lease contains a purchase option that is reasonably certain to be exercised, or unless it is reasonably certain that the equipment will be leased for greater than twelve months. Lease payments for short-term leases are recognized on a straight-line basis over the lease term. About half of the Company’s short-term leases relate to equipment used on construction projects, for which the rentals are based on daily, weekly or monthly rental rates for an unspecified duration, and typically contain termination for convenience provisions. Lease determinations are reassessed in the event of a change in lease terms. The Company has a limited number of sublease arrangements, which are not considered material to the consolidated financial statements. As of September 30, 2019 , the Company’s leases have remaining lease terms of up to ten years . Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for one year for equipment leases, and from one to five years for facility leases. Certain lease agreements may also contain options to purchase the leased property and/or options to terminate the lease. In addition, lease agreements may include periodic adjustments to payment amounts for inflation or other variables, or may require payments for taxes, insurance, maintenance or other expenses, which are generally referred to as non-lease components. The Company elected the practical expedient to account for non-lease components together with the related lease components for all classes of leased assets. The Company’s lease agreements do not contain significant residual value guarantees or material restrictive covenants. Lease term, discount rate, variable lease costs and future minimum lease payment determinations require the use of judgment, and are based on the facts and circumstances of each lease. Economic incentives, intent, past history and business need are among the factors considered to determine if renewal and/or purchase options are reasonably certain to be exercised. The majority of the Company’s lease agreements do not explicitly state the discount rate implicit in the lease, therefore, the Company generally uses an incremental borrowing rate to determine the value of its lease obligations. The incremental borrowing rate represents the rate of interest that would be paid to borrow on a collateralized basis over a similar term. The Company determines its incremental borrowing rate using a portfolio approach based on information available as of the lease commencement date, including applicable lease terms and the current economic environment. Finance Leases Finance lease assets are recorded within property and equipment, with a corresponding amount recorded within the Company’s debt obligations. Finance lease expense is composed of depreciation expense on the leased asset and interest on the lease liability. Additions to finance leases are included within the supplemental disclosures of non-cash information in the consolidated statements of cash flows. Many of the Company’s finance leases contain purchase options, which the Company frequently exercises, given that the purchase option prices are typically below the estimated fair market values of the related assets. The gross amount of assets held under finance leases as of September 30, 2019 and December 31, 2018 totaled $415.5 million and $337.6 million , respectively. Assets held under finance leases, net of accumulated depreciation, totaled $340.4 million and $246.8 million as of September 30, 2019 and December 31, 2018 , respectively. Depreciation expense associated with finance leases totaled $13.1 million and $34.2 million for the three and nine month periods ended September 30, 2019 , respectively. Operating Leases Operating lease right-of-use assets and liabilities are recognized on the consolidated balance sheets, with the related lease expense recognized over the term of the lease on a straight-line basis. Operating lease expense is recorded as rent expense, primarily within costs of revenue, excluding depreciation and amortization. Fixed costs for operating leases are composed of initial base rent amounts plus any fixed annual increases. Variable costs for operating leases consist primarily of common area maintenance expenses and taxes for facility leases. Certain of the Company’s operating leases contain purchase options, for which the purchase option price is generally considered to be at fair market value. From time to time, the Company may terminate a lease before the end of the lease term. Payments related to such early lease terminations are generally recorded within rent expense. Operating lease additions for the three and nine month periods ended September 30, 2019 , excluding the effect of adoption of approximately $230 million , totaled $20 million and $86 million , respectively. For the three and nine month periods ended September 30, 2019 , rent expense for leases that have terms in excess of one year totaled approximately $29.5 million and $84.8 million , respectively, of which $3.1 million and $7.5 million , respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $144.0 million and $352.4 million for the three and nine month periods ended September 30, 2019 , respectively. For the three and nine month periods ended September 30, 2018 , rent and related expense for operating leases that have non-cancelable terms in excess of one year totaled approximately $33.1 million and $85.4 million , respectively, and rent and related expense for operating leases having original terms of one year or less totaled approximately $142.7 million and $339.4 million , respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, and is included within operating activities in the consolidated statements of cash flows. Additional Lease Information Future minimum lease commitments as of September 30, 2019 were as follows (in millions): Finance Leases Operating Leases 2019, remaining three months $ 28.5 $ 24.3 2020 107.4 82.7 2021 93.7 59.9 2022 54.9 36.4 2023 15.5 19.7 Thereafter 0.5 40.9 Total minimum lease payments $ 300.5 $ 263.9 Less amounts representing interest (18.3 ) (25.5 ) Total lease obligations, net of interest $ 282.2 $ 238.4 Less current portion 99.3 79.2 Long-term portion of lease obligations, net of interest $ 182.9 $ 159.3 As of September 30, 2019 , finance leases had a weighted average remaining lease term of 3.0 years and a weighted average discount rate of 4.1% . Non-cancelable operating leases had a weighted average remaining lease term of 4.3 years and a weighted average discount rate of 4.2% as of September 30, 2019 . As of September 30, 2019 , future lease obligations for leases that had not yet commenced totaled approximately $18 million . These leases commence in 2019 with lease terms of one to five years. |
Stock-Based Compensation and Ot
Stock-Based Compensation and Other Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation and Other Employee Benefit Plans | Note 9 – Stock-Based Compensation and Other Employee Benefit Plans The Company has stock-based compensation plans, under which shares of the Company’s common stock are reserved for issuance. Under all stock-based compensation plans in effect as of September 30, 2019 , including employee stock purchase plans, there were approximately 4,118,000 shares available for future grant. Non-cash stock-based compensation expense under all plans totaled $4.2 million and $3.5 million for the three month periods ended September 30, 2019 and 2018 , respectively, and totaled $12.1 million and $10.1 million for the nine month periods ended September 30, 2019 and 2018 , respectively. Income tax benefits associated with stock-based compensation arrangements totaled $1.0 million and $0.9 million for the three month periods ended September 30, 2019 and 2018 , respectively. For the nine month periods ended September 30, 2019 and 2018 income tax benefits totaled $5.3 million and $2.7 million , respectively, including net tax benefits from the vesting of share-based payment awards of $2.3 million and $0.3 million , respectively. Restricted Shares MasTec grants restricted stock awards and restricted stock units (together, “restricted shares”) to eligible participants, which are valued based on the closing market share price of MasTec common stock (the “market price”) on the date of grant. During the restriction period, holders of restricted stock awards are entitled to vote the shares. As of September 30, 2019 , total unearned compensation related to restricted shares was approximately $23.6 million , which is expected to be recognized over a weighted average period of approximately 2.0 years . The intrinsic value of restricted shares that vested, which is based on the market price on the date of vesting, totaled $0.2 million and $0.6 million for the three month periods ended September 30, 2019 and 2018 , respectively, and totaled $14.1 million and $2.3 million for the nine month periods ended September 30, 2019 and 2018 , respectively. Activity, restricted shares: (a) Restricted Per Share Weighted Average Grant Date Fair Value Non-vested restricted shares, as of December 31, 2018 1,270,233 $ 31.80 Granted 226,999 47.03 Vested (335,989 ) 14.10 Canceled/forfeited (10,800 ) 33.87 Non-vested restricted shares, as of September 30, 2019 1,150,443 $ 39.95 (a) Includes 2,400 and 18,700 restricted stock units as of September 30, 2019 and December 31, 2018 , respectively. Employee Stock Purchase Plans The Company has certain employee stock purchase plans (collectively, “ESPPs”) under which shares of the Company's common stock are available for purchase by eligible employees. The following table provides details pertaining to the Company’s ESPPs for the periods indicated: For the Nine Months Ended September 30, 2019 2018 Cash proceeds (in millions) $ 3.4 $ 3.1 Common shares issued 87,014 79,459 Weighted average price per share $ 39.23 $ 39.36 Weighted average per share grant date fair value $ 9.97 $ 9.62 |
Other Retirement Plans
Other Retirement Plans | 9 Months Ended |
Sep. 30, 2019 | |
Multiemployer Plans [Abstract] | |
Other Retirement Plans | Note 10 – Other Retirement Plans Multiemployer Plans. Certain of MasTec’s subsidiaries, including certain subsidiaries in Canada, contribute amounts to multiemployer pension and other multiemployer benefit plans and trusts (“MEPPs”), which are recorded as a component of employee wages and salaries within costs of revenue, excluding depreciation and amortization. Contributions are generally based on fixed amounts per hour per employee for employees covered under these plans. Multiemployer plan contribution rates are determined annually and assessed on a “pay-as-you-go” basis based on union employee payrolls. Union payrolls cannot be determined for future periods because the number of union employees employed at a given time, and the plans in which they participate, vary depending upon the location and number of ongoing projects and the need for union resources in connection with those projects. Total contributions to multiemployer plans and the related number of employees covered by these plans, including with respect to the Company’s Canadian operations, for the periods indicated were as follows: Multiemployer Plans Covered Employees Contributions (in millions) Low High Pension Other Multiemployer Total For the Three Months Ended September 30: 2019 3,814 5,349 $ 23.0 $ 1.2 $ 24.2 2018 6,183 6,336 $ 35.0 $ 0.9 $ 35.9 For the Nine Months Ended September 30: 2019 1,626 5,349 $ 51.7 $ 4.0 $ 55.7 2018 2,018 6,336 $ 66.0 $ 5.1 $ 71.1 The fluctuations in the number of employees covered under multiemployer plans and related contributions in the table above related primarily to timing of activity for the Company’s union resource-based projects, the majority of which are within its oil and gas operations. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Equity | Note 11 – Equity Share Activity The Company’s share repurchase programs provide for the repurchase of shares of MasTec common stock from time to time in open market transactions or in privately-negotiated transactions in accordance with applicable securities laws. The timing and the amount of any repurchases is determined based on market conditions, legal requirements, cash flow and liquidity needs and other factors. The Company’s share repurchase programs do not have an expiration date and may be modified or suspended at any time at the Company’s discretion. Share repurchases, which are recorded at cost and are held in the Company’s treasury, are funded with available cash or with availability under the Credit Facility. The Company may use either authorized and unissued shares or treasury shares to meet share issuance requirements. Treasury stock is recorded at cost. There were no share repurchases for the three month period ended September 30, 2019 . For the nine month period ended September 30, 2019 , share repurchases, which were completed under the Company’s September 2018 $150 million share repurchase program, totaled approximately $0.6 million . During the three and nine month periods ended September 30, 2018 , the Company repurchased approximately 1.6 million and 4.3 million shares of its common stock, respectively, for an aggregate purchase price of $70.1 million and $198.4 million , respectively. Of the 4.3 million repurchased shares, 2.0 million were repurchased for $98.4 million under a $100 million share repurchase program that was established in 2016 and completed in the first quarter of 2018, and 2.3 million were repurchased under the Company’s March 2018 $100 million share repurchase program that was completed in the third quarter of 2018. As of September 30, 2019 , $128.8 million was available for future share repurchases under all of the Company’s open share repurchase programs, which included $28.8 million under the Company’s September 2018 share repurchase program, and the full amount of the Company’s December 2018 $100 million share repurchase program. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is composed of unrealized foreign currency gains and losses from fluctuations in foreign currency exchange rates of the Company’s foreign subsidiaries with a functional currency other than the U.S. dollar, as well as unrealized gains and losses from certain investment activities. Unrealized foreign currency activity for each of the three and nine month periods ended September 30, 2019 and 2018 relates to the Company’s operations in Canada and Mexico. Unrealized investment activity for each of the three and nine month periods ended September 30, 2019 and 2018 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12 – Income Taxes In determining the quarterly provision for income taxes, management uses an estimated annual effective tax rate based on forecasted annual pre-tax income, permanent tax differences, statutory tax rates and tax planning opportunities in the various jurisdictions in which the Company operates. The effect of significant discrete items is separately recognized in the quarter(s) in which they occur. For the three month periods ended September 30, 2019 and 2018 , the Company’s consolidated effective tax rates were 25% and 17% , respectively. For both the nine month periods ended September 30, 2019 and 2018 , the Company’s consolidated effective tax rate was 24% . The Company’s effective tax rate for the nine month period ended September 30, 2019 included the favorable effects of reduced foreign earnings, the recognition of $2.3 million of excess tax benefits from the vesting of share-based awards, adjustments from the finalization of the Company’s 2018 tax returns and the effects of foreign tax rate changes. For the nine month period ended September 30, 2018 , the Company’s effective tax rate included a net tax benefit of approximately $16 million related to the 2017 Tax Act, including from finalization of its tax return for the year ended December 31, 2017, certain tax accounting method changes and other adjustments to the initial remeasurement of its deferred tax balances as of December 31, 2017. |
Segments and Related Informatio
Segments and Related Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments and Related Information | Note 13 – Segments and Related Information Segment Discussion The Company manages its operations under five operating segments, which represent its five reportable segments: (1) Communications; (2) Oil and Gas; (3) Electrical Transmission; (4) Power Generation and Industrial and (5) Other. This structure is generally focused on broad end-user markets for the Company’s labor-based construction services. All five reportable segments derive their revenue from the engineering, installation and maintenance of infrastructure, primarily in North America. The Communications segment performs engineering, construction, maintenance and customer fulfillment activities related to communications infrastructure, primarily for wireless and wireline/fiber communications and install-to-the-home customers, and, to a lesser extent, infrastructure for utilities, among others. The Company performs engineering, construction and maintenance services for oil and natural gas pipelines and processing facilities for the energy and utilities industries through its Oil and Gas segment. The Electrical Transmission segment primarily serves the energy and utility industries through the engineering, construction and maintenance of electrical transmission lines and substations. The Power Generation and Industrial segment primarily serves energy, utility and other end-markets through the installation and construction of power facilities, including renewables, related electrical transmission infrastructure, ethanol/biofuel facilities and various types of heavy civil and industrial infrastructure. The Other segment includes equity investees, the services of which vary from those provided by the Company’s primary segments, as well as other small business units that perform construction and other services for a variety of international end-markets. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. As appropriate, the Company supplements the reporting of consolidated financial information determined in accordance with U.S. GAAP with certain non-U.S. GAAP financial measures, including EBITDA. The Company believes these non-U.S. GAAP measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. The Company uses EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results for its reportable segments, as well as items that can vary widely across different industries or among companies within the same industry, and for non-cash stock-based compensation expense, can also be subject to volatility from changes in the market price per share of the Company’s common stock or variations in the value of shares granted. Segment EBITDA is calculated in a manner consistent with consolidated EBITDA. Summarized financial information for MasTec’s reportable segments is presented and reconciled to consolidated financial information for total MasTec in the following tables, including a reconciliation of consolidated income before income taxes to EBITDA, all of which are presented in millions. The tables below may contain slight summation differences due to rounding. For the Three Months Ended September 30, For the Nine Months Ended September 30, Revenue: 2019 2018 2019 2018 Communications (a) $ 679.5 $ 661.7 $ 1,944.9 $ 1,907.5 Oil and Gas 972.5 1,035.9 2,530.5 2,341.6 Electrical Transmission 103.0 99.1 298.3 297.6 Power Generation and Industrial 261.7 179.6 701.3 443.2 Other 0.1 1.6 0.1 3.7 Eliminations (0.2 ) (0.7 ) (1.1 ) (1.7 ) Consolidated revenue $ 2,016.6 $ 1,977.2 $ 5,474.0 $ 4,991.9 (a) Revenue generated primarily by utilities customers represented 14.9% and 13.9% of Communications segment revenue for the three month periods ended September 30, 2019 and 2018 , respectively, and represented 15.3% and 15.1% for the nine month periods ended September 30, 2019 and 2018 , respectively. For the Three Months Ended September 30, For the Nine Months Ended September 30, EBITDA: 2019 2018 2019 2018 Communications $ 57.1 $ 74.8 $ 154.8 $ 230.6 Oil and Gas 212.9 155.8 499.6 311.5 Electrical Transmission 7.8 3.1 20.3 5.0 Power Generation and Industrial 2.3 9.7 14.4 24.3 Other 6.7 7.0 19.4 19.7 Corporate (38.9 ) (27.6 ) (87.7 ) (75.0 ) Consolidated EBITDA $ 247.9 $ 222.8 $ 620.8 $ 516.1 For the Three Months Ended September 30, For the Nine Months Ended September 30, Depreciation and Amortization: 2019 2018 2019 2018 Communications $ 15.7 $ 14.5 $ 45.7 $ 44.4 Oil and Gas 28.8 30.6 97.7 82.1 Electrical Transmission 5.1 4.8 14.8 15.2 Power Generation and Industrial 3.3 3.4 9.7 9.9 Other 0.0 0.0 0.1 0.1 Corporate 2.3 1.6 6.2 4.8 Consolidated depreciation and amortization $ 55.2 $ 54.9 $ 174.2 $ 156.5 For the Three Months Ended September 30, For the Nine Months Ended September 30, EBITDA Reconciliation: 2019 2018 2019 2018 Income before income taxes $ 173.4 $ 145.6 $ 388.5 $ 299.4 Plus: Interest expense, net 19.3 22.3 58.2 60.2 Depreciation and amortization 55.2 54.9 174.2 156.5 Consolidated EBITDA $ 247.9 $ 222.8 $ 620.8 $ 516.1 Foreign Operations. MasTec operates in North America, primarily in the United States and Canada, and, to a lesser extent, in Mexico. For the three month periods ended September 30, 2019 and 2018 , revenue of $2.0 billion and $1.9 billion , respectively, was derived from U.S. operations, and revenue of $64.1 million and $41.4 million , respectively, was derived from foreign operations. For the nine month periods ended September 30, 2019 and 2018 , revenue of $5.3 billion and $4.9 billion , respectively, was derived from U.S. operations, and revenue of $191.0 million and $101.9 million , respectively, was derived from foreign operations. The majority of the Company’s revenue from foreign operations for the three and nine month periods ended September 30, 2019 and 2018 was from the Company’s Canadian operations in its Oil and Gas segment, and, to a lesser extent, from the Company’s wireless operations in Mexico. Long-lived assets held in the U.S. included property and equipment, net, of $831.1 million and $707.4 million as of September 30, 2019 and December 31, 2018 , respectively, and, for the Company’s businesses in foreign countries, totaled $31.8 million and $40.4 million , respectively. Intangible assets and goodwill, net, related to the Company’s U.S. operations totaled approximately $1.3 billion and $1.2 billion as of September 30, 2019 and December 31, 2018 , respectively, and for the Company’s businesses in foreign countries, totaled approximately $62.1 million and $61.5 million as of September 30, 2019 and December 31, 2018 , respectively. The majority of the Company’s long-lived and intangible assets and goodwill in foreign countries relate to its Canadian operations. As of both September 30, 2019 and December 31, 2018 , amounts due from customers from which foreign revenue was derived accounted for approximately 5% of the Company’s consolidated net accounts receivable position, which represents accounts receivable, net, less BIEC. Significant Customers Revenue concentration information for significant customers as a percentage of total consolidated revenue was as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, Customer: 2019 2018 2019 2018 AT&T (including DIRECTV ® ) (a) 18% 21% 20% 24% Equitrans Midstream Corporation/EQT Corporation (b) 17% 28% 12% 18% Energy Transfer affiliates (c) 7% 12% 7% 17% (a) The Company’s relationship with AT&T is based upon multiple separate master service and other service agreements, including for installation and maintenance services, as well as construction/installation contracts for AT&T’s: (i) wireless business; (ii) wireline/fiber businesses; and (iii) various install-to-the-home businesses, including DIRECTV ® . Revenue from AT&T is included in the Communications segment. (b) The Company's relationship with Equitrans Midstream Corporation and its affiliates, which was spun off from EQT Corporation and its affiliates in 2018, is based upon various construction contracts for pipeline activities, for which the related revenue is included in the Oil and Gas segment. (c) The Company's relationship with Energy Transfer affiliates is based upon various construction contracts for pipeline activities with Energy Transfer Operating, L.P., and its subsidiaries and affiliates, all of which are consolidated by Energy Transfer L.P. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14 – Commitments and Contingencies MasTec is subject to a variety of legal cases, claims and other disputes that arise from time to time in the ordinary course of its business, including project contract price and acquisition purchase price disputes. MasTec cannot provide assurance that it will be successful in recovering all or any of the potential damages it has claimed or in defending claims against the Company. The outcome of such cases, claims and disputes cannot be predicted with certainty and an unfavorable resolution of one or more of them could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows. In the second quarter of 2019, an arbitration award related to a Canadian acquisition was finalized (the “Award”) for approximately $60 million , including recovery of certain legal and other costs, in favor of MasTec. During the second quarter of 2019, MasTec collected $32 million of this award, including approximately $16 million for recovery of legal fees and $5 million for recovery of interest costs. While the Company is actively pursuing collection efforts related to the remaining amount of the Award, collectibility is uncertain, and as such, this amount has not been recognized in the Company’s consolidated financial statements. Other Commitments and Contingencies Leases. In the ordinary course of business, the Company enters into non-cancelable operating leases for certain of its facility, vehicle and equipment needs, including related party leases. See Note 8 - Lease Obligations and Note 15 - Related Party Transactions . Letters of Credit. In the ordinary course of business, the Company is required to post letters of credit for its insurance carriers, surety bond providers and in support of performance under certain contracts as well as certain obligations associated with the Company’s equity investments and other strategic arrangements, including its variable interest entities. Such letters of credit are generally issued by a bank or similar financial institution. The letter of credit commits the issuer to pay specified amounts to the holder of the letter of credit under certain conditions. If this were to occur, the Company would be required to reimburse the issuer of the letter of credit, which, depending upon the circumstances, could result in a charge to earnings. As of September 30, 2019 and December 31, 2018 , there were $142.4 million and $128.4 million , respectively, of letters of credit issued under the Company’s credit facilities. The Company is not aware of any material claims relating to its outstanding letters of credit as of September 30, 2019 or December 31, 2018 . Performance and Payment Bonds. In the ordinary course of business, MasTec is required by certain customers to provide performance and payment bonds for contractual commitments related to its projects. These bonds provide a guarantee to the customer that the Company will perform under the terms of a contract and that the Company will pay its subcontractors and vendors. If the Company fails to perform under a contract or to pay its subcontractors and vendors, the customer may demand that the surety make payments or provide services under the bond. The Company must reimburse the surety for expenses or outlays it incurs. As of September 30, 2019 and December 31, 2018 , outstanding performance and payment bonds approximated $430.3 million and $123.6 million , respectively, and estimated costs to complete projects secured by these bonds totaled $178.0 million and $53.0 million as of September 30, 2019 and December 31, 2018 , respectively. Investment Arrangements. From time to time, the Company may participate in selected investment or strategic arrangements to expand its operations, customer base or geographic reach, including arrangements that combine the Company’s skills and resources with those of others to allow for the performance of particular projects. The Company holds undivided interests, ranging from 85% to 90% , in multiple proportionately consolidated non-controlled contractual joint ventures that provide infrastructure construction services for electrical transmission projects. The Company also holds a 35% undivided interest in a proportionately consolidated non-controlled Canadian contractual joint venture that was underway when the Company acquired Pacer in 2014, whose sole activity was the construction of a bridge, a business in which the Company does not otherwise engage. This joint venture, which is managed by a third party, and for which the Company has minimal direct construction involvement, automatically terminates upon completion of the project. Income and/or losses incurred by these joint ventures are generally shared proportionally by the respective joint venture members, with the members of the joint ventures jointly and severally liable for all of the obligations of the joint venture. The respective joint venture agreements provide that each joint venture partner indemnify the other party for any liabilities incurred by such joint venture in excess of its ratable portion of such liabilities. Thus, it is possible that the Company could be required to pay or perform obligations in excess of its share if the other joint venture partners fail or refuse to pay or perform their respective share of the obligations. As of September 30, 2019 , the Company was not aware of circumstances that would reasonably lead to material future claims against it in connection with these arrangements. Included in the Company’s cash balances as of September 30, 2019 and December 31, 2018 are amounts held by entities that are proportionately consolidated totaling $20.3 million and $11.8 million , respectively. These amounts are available to support the operations of those entities, but are not available for the Company’s other operations. The Company has other investment arrangements, under which it may incur costs or provide financing, performance, financial and/or other guarantees. See Note 4 - Fair Value of Financial Instruments and Note 15 - Related Party Transactions for additional details regarding the Company’s other investment arrangements. Self-Insurance. MasTec maintains insurance policies for workers’ compensation, general liability and automobile liability, which are subject to per claim deductibles. The Company is self-insured up to the amount of the deductible. The Company also maintains excess umbrella coverage. As of September 30, 2019 and December 31, 2018 , MasTec’s liability for unpaid claims and associated expenses, including incurred but not reported losses related to these policies, totaled $119.7 million and $108.9 million , respectively, of which $78.5 million and $70.8 million , respectively, were reflected within other long-term liabilities in the consolidated balance sheets. MasTec also maintains an insurance policy with respect to employee group medical claims, which is subject to annual per employee maximum losses. MasTec’s estimated liability for employee group medical claims totaled $4.8 million and $2.9 million as of September 30, 2019 and December 31, 2018 , respectively. The Company is required to post collateral, generally in the form of letters of credit, surety bonds and cash to certain of its insurance carriers. Insurance-related letters of credit for the Company’s workers’ compensation, general liability and automobile liability policies amounted to $67.6 million as of both September 30, 2019 and December 31, 2018 . Outstanding surety bonds related to self-insurance programs amounted to $38.5 million and $34.8 million as of September 30, 2019 and December 31, 2018 . In addition, cash collateral deposited with insurance carriers, which is included within other long-term assets, amounted to $1.6 million for these policies as of both September 30, 2019 and December 31, 2018 . Employment Agreements. The Company has employment agreements with certain executives and other employees, which provide for compensation and certain other benefits and for severance payments under certain circumstances. Certain employment agreements also contain clauses that become effective upon a change in control of the Company. Upon the occurrence of any of the defined events in the various employment agreements, the Company would be obligated to pay certain amounts to the related employees, which vary with the level of the employees’ respective responsibility. Collective Bargaining Agreements and Multiemployer Plans. As discussed in Note 10 - Other Retirement Plans , certain of MasTec’s subsidiaries are party to various collective bargaining agreements with unions representing certain of their employees, which require the Company to pay specified wages, provide certain benefits and contribute certain amounts to MEPPs. The Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980 (collectively, “ERISA”), which governs U.S.-registered multiemployer pension plans, subjects employers to substantial liabilities in the event of an employer’s complete or partial withdrawal from, or upon termination of, such plans. The Company currently contributes, and in the past, has contributed to, plans that are underfunded, and, therefore, could have potential liability associated with a voluntary or involuntary withdrawal from, or termination of, these plans. As of September 30, 2019 , the Company does not have plans to withdraw from, and is not aware of circumstances that would reasonably lead to material claims against it, in connection with the MEPPs in which it participates. There can be no assurance, however, that the Company will not be assessed liabilities in the future, including in the form of a surcharge on future benefit contributions. The amount the Company could be obligated to pay or contribute in the future cannot be estimated, as these amounts are based on future levels of work of the union employees covered by these plans, investment returns and the level of underfunding of such plans. Indemnities. The Company generally indemnifies its customers for the services it provides under its contracts, as well as other specified liabilities, which may subject the Company to indemnity claims, liabilities and related litigation. As of September 30, 2019 and December 31, 2018 , the Company was not aware of any material asserted or unasserted claims in connection with these indemnity obligations. Other Guarantees. In the ordinary course of its business, from time to time, MasTec guarantees the obligations of its subsidiaries, including obligations under certain contracts with customers, certain lease obligations and in some states, obligations in connection with obtaining contractors’ licenses. MasTec has also issued performance and other guarantees in connection with certain of its equity investments. MasTec also generally warrants the work it performs for a one to two year period following substantial completion of a project. Much of the work performed by the Company is evaluated for defects shortly after the work is completed. Warranty claims have historically not been material. However, if warranty claims occur, the Company could be required to repair or replace warrantied items, or, if customers elect to repair or replace the warrantied item using the services of another provider, the Company could be required to pay for the cost of the repair or replacement. Concentrations of Risk. The Company had approximately 415 customers for the nine month period ended September 30, 2019 . As of September 30, 2019 , four customers each accounted for approximately 14% , 12% , 12% and 11% , respectively, of the Company’s consolidated net accounts receivable position, which represents accounts receivable, net, less BIEC. As of December 31, 2018 , three customers each accounted for approximately 26% , 18% and 12% , respectively, of the Company’s consolidated net accounts receivable position. In addition, the Company derived 65% and 76% , respectively, of its revenue from its top ten customers for the three month periods ended September 30, 2019 and 2018 , and derived 63% and 73% of its revenue, respectively, from its top ten customers for the nine month periods ended September 30, 2019 and 2018 . |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 15 – Related Party Transactions MasTec purchases, rents and leases equipment and purchases various types of supplies and services used in its business, including ancillary construction services, project-related site restoration and marketing and business development activities from a number of different vendors on a non-exclusive basis, and from time to time, rents equipment to, or performs construction services on behalf of, entities that are associated with members of subsidiary management. For the three month periods ended September 30, 2019 and 2018 , such payments to related party entities totaled $25.5 million and $34.2 million , respectively, and for the nine month periods ended September 30, 2019 and 2018 , totaled approximately $71.8 million and $65.9 million , respectively. Payables associated with these related party arrangements totaled approximately $20.3 million and $17.3 million as of September 30, 2019 and December 31, 2018 , respectively. Revenue from related party arrangements associated with members of subsidiary management totaled approximately $0.7 million and $3.2 million for the three month periods ended September 30, 2019 and 2018 , respectively, and totaled $1.6 million and $9.4 million for the nine month periods ended September 30, 2019 and 2018 , respectively. As of September 30, 2019 and December 31, 2018 , related amounts receivable, net, totaled approximately $0.1 million and $0.3 million , respectively. Non-controlling interests in entities consolidated by the Company represent ownership interests held by members of management of certain of the Company’s subsidiaries, primarily in the Company’s Oil and Gas segment. The Company has subcontracting arrangements with one of these entities for the performance of ancillary oil and gas construction services. In February 2018, MasTec acquired a construction management firm specializing in steel building systems, of which Juan Carlos Mas, who is the brother of Jorge Mas, Chairman of MasTec’s Board of Directors, and José R. Mas, MasTec’s Chief Executive Officer, was a minority owner, for approximately $6.1 million in cash and an estimated earn-out liability of approximately $1.4 million , net, as adjusted. The net assets acquired included notes payable to the former owners totaling approximately $2.6 million and accrued interest of approximately $0.1 million , which amounts were subsequently repaid. Amounts outstanding for advances made by the Company on behalf of this entity totaled approximately $0.4 million , net, and $1.0 million as of September 30, 2019 and December 31, 2018 , respectively, which amount is expected to be settled under customary terms associated with the related purchase agreement. The Company rents and leases equipment and purchases equipment supplies and servicing from CCI, in which it has a 15% equity investment. Juan Carlos Mas serves as the chairman of CCI, and a member of management of a MasTec subsidiary is a minority owner. For the three month periods ended September 30, 2019 and 2018 , MasTec paid CCI approximately $7.7 million and $9.0 million , net of rebates, respectively, and for the nine month periods ended September 30, 2019 and 2018 , paid approximately $23.6 million and $19.9 million , net of rebates, respectively, related to these arrangements. Amounts payable to CCI, net of rebates receivable, totaled approximately $12.3 million as of September 30, 2019 . As of December 31, 2018 , amounts payable totaled $4.9 million , and rebates receivable totaled $2.9 million . MasTec has a subcontracting arrangement with an entity for the performance of construction services, the minority owners of which include an entity controlled by Jorge Mas and José R. Mas, along with two members of management of a MasTec subsidiary. For the three month periods ended September 30, 2019 and 2018 , MasTec incurred subcontracting expenses of approximately $3.1 million and $1.1 million , respectively, and for the nine month periods ended September 30, 2019 and 2018 , incurred approximately $9.3 million and $7.8 million , respectively. As of September 30, 2019 and December 31, 2018 , related amounts payable totaled approximately $3.2 million and $0.4 million , respectively. MasTec has a leasing arrangement for an aircraft that is owned by an entity that Jorge Mas owns. For the three month periods ended September 30, 2019 and 2018 , MasTec paid approximately $0.6 million and $0.9 million , respectively, related to this leasing arrangement, and for both the nine month periods ended September 30, 2019 and 2018 , paid approximately $2.0 million . MasTec has arrangements to perform construction services on a cost-plus basis on behalf of a Miami soccer franchise (the “Franchise”) in which Jorge Mas and José R. Mas are minority owners. These arrangements include the construction of a soccer facility and stadium. For the three and nine month periods ended September 30, 2019 , MasTec charged approximately $5.2 million and $7.4 million , respectively, under these arrangements, of which $4.6 million was outstanding as of September 30, 2019 . MasTec leases employees and provides satellite communications services to a customer in which Jorge Mas and José R. Mas own a majority interest. For the three month periods ended September 30, 2019 and 2018 , MasTec charged approximately $0.3 million and $0.4 million , respectively, to this customer, and for the nine month periods ended September 30, 2019 and 2018 , charged $1.1 million and $1.3 million , respectively. As of September 30, 2019 and December 31, 2018 , outstanding receivables related to these arrangements totaled approximately $0.7 million and $0.6 million , respectively. Split Dollar Agreements The Company has split dollar life insurance agreements with trusts, of which Jorge Mas or José R. Mas is a trustee. For both the three month periods ended September 30, 2019 and 2018 , the Company paid $0.6 million in connection with the split dollar agreements for Jorge Mas, and no payments were made for José R. Mas. For both the nine month periods ended September 30, 2019 and 2018 , the Company paid $1.1 million in connection with the split dollar agreements for Jorge Mas. and paid $0.7 million for both the nine month periods ended September 30, 2019 and 2018 for José R. Mas. As of September 30, 2019 and December 31, 2018 , life insurance assets associated with these agreements totaled approximately $20.3 million and $18.5 million , respectively. |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Unaudited Financial Statements, Supplemental Guarantor Information [Abstract] | |
Supplemental Guarantor Financial Information | Note 16 – Supplemental Guarantor Condensed Consolidating Financial Information The 4.875% Senior Notes are fully and unconditionally guaranteed on an unsecured, unsubordinated, joint and several basis by certain of the Company’s existing and future 100%-owned direct and indirect domestic subsidiaries that are, as of September 30, 2019 , each guarantors of the Credit Facility or other outstanding indebtedness (the “Guarantor Subsidiaries”). The Company’s subsidiaries organized outside of the United States and certain domestic subsidiaries (collectively, the “Non-Guarantor Subsidiaries”) do not guarantee these notes. A Guarantor Subsidiary’s guarantee is subject to release in certain customary circumstances, including upon the sale of a majority of the capital stock or substantially all of the assets of such Guarantor Subsidiary; if the Guarantor Subsidiary’s guarantee under the Company’s Credit Facility and other indebtedness is released or discharged (other than due to payment under such guarantee); or when the requirements for legal defeasance are satisfied or the obligations are discharged in accordance with the related indentures. The following supplemental financial information sets forth the condensed consolidating balance sheets and the condensed consolidating statements of operations and comprehensive income (loss) and cash flows for MasTec, Inc., the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis and the eliminations necessary to arrive at the information for the Company as reported on a consolidated basis. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions between or among MasTec, Inc., the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries. Investments in subsidiaries are accounted for using the equity method for this presentation. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited - in millions) For the Three Months Ended September 30, 2019 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Revenue $ — $ 1,916.8 $ 126.4 $ (26.6 ) $ 2,016.6 Costs of revenue, excluding depreciation and amortization — 1,609.2 108.0 (26.6 ) 1,690.6 Depreciation and amortization — 51.8 3.4 — 55.2 General and administrative expenses 0.8 72.2 4.1 — 77.1 Interest expense (income), net — 35.4 (16.1 ) — 19.3 Equity in earnings of unconsolidated affiliates — — (7.0 ) — (7.0 ) Other expense (income), net — 8.6 (0.6 ) — 8.0 (Loss) income before income taxes $ (0.8 ) $ 139.6 $ 34.6 $ — $ 173.4 Benefit from (provision for) income taxes 0.2 (39.1 ) (4.4 ) — (43.3 ) Net (loss) income before equity in income from subsidiaries $ (0.6 ) $ 100.5 $ 30.2 $ — $ 130.1 Equity in income from subsidiaries, net of tax 129.2 — — (129.2 ) — Net income (loss) $ 128.6 $ 100.5 $ 30.2 $ (129.2 ) $ 130.1 Net income attributable to non-controlling interests — — 1.5 — 1.5 Net income (loss) attributable to MasTec, Inc. $ 128.6 $ 100.5 $ 28.7 $ (129.2 ) $ 128.6 Comprehensive income (loss) $ 121.2 $ 100.5 $ 22.7 $ (121.7 ) $ 122.6 For the Three Months Ended September 30, 2018 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Revenue $ — $ 1,894.5 $ 102.3 $ (19.6 ) $ 1,977.2 Costs of revenue, excluding depreciation and amortization — 1,603.0 98.0 (19.6 ) 1,681.4 Depreciation and amortization — 49.7 5.2 — 54.9 General and administrative expenses 0.7 73.2 6.4 — 80.3 Interest expense (income), net — 38.7 (16.4 ) — 22.3 Equity in earnings of unconsolidated affiliates — — (7.7 ) — (7.7 ) Other expense (income), net — 2.1 (1.8 ) — 0.3 (Loss) income before income taxes $ (0.7 ) $ 127.8 $ 18.6 $ — $ 145.6 Benefit from (provision for) income taxes 0.2 (35.9 ) 10.6 — (25.1 ) Net (loss) income before equity in income from subsidiaries $ (0.5 ) $ 91.9 $ 29.2 $ — $ 120.5 Equity in income from subsidiaries, net of tax 121.2 — — (121.2 ) — Net income (loss) $ 120.7 $ 91.9 $ 29.2 $ (121.2 ) $ 120.5 Net loss attributable to non-controlling interests — — (0.1 ) — (0.1 ) Net income (loss) attributable to MasTec, Inc. $ 120.7 $ 91.9 $ 29.3 $ (121.2 ) $ 120.7 Comprehensive income (loss) $ 124.9 $ 91.9 $ 33.6 $ (125.5 ) $ 124.9 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited - in millions) For the Nine Months Ended September 30, 2019 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Revenue $ — $ 5,164.0 $ 388.9 $ (78.9 ) $ 5,474.0 Costs of revenue, excluding depreciation and amortization — 4,354.7 360.2 (78.9 ) 4,636.0 Depreciation and amortization — 161.7 12.5 — 174.2 General and administrative expenses 2.3 205.6 12.7 — 220.6 Interest expense (income), net — 105.6 (47.4 ) — 58.2 Equity in losses (earnings) of unconsolidated affiliates — 0.1 (19.9 ) — (19.8 ) Other expense (income), net — 53.9 (37.6 ) — 16.3 (Loss) income before income taxes $ (2.3 ) $ 282.4 $ 108.4 $ — $ 388.5 Benefit from (provision for) income taxes 0.7 (90.1 ) (5.7 ) — (95.1 ) Net (loss) income before equity in income from subsidiaries $ (1.6 ) $ 192.3 $ 102.7 $ — $ 293.4 Equity in income from subsidiaries, net of tax 293.0 — — (293.0 ) — Net income (loss) $ 291.4 $ 192.3 $ 102.7 $ (293.0 ) $ 293.4 Net income attributable to non-controlling interests — — 2.0 — 2.0 Net income (loss) attributable to MasTec, Inc. $ 291.4 $ 192.3 $ 100.7 $ (293.0 ) $ 291.4 Comprehensive income (loss) $ 269.8 $ 192.3 $ 81.1 $ (271.4 ) $ 271.8 For the Nine Months Ended September 30, 2018 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Revenue $ — $ 4,717.0 $ 372.0 $ (97.1 ) $ 4,991.9 Costs of revenue, excluding depreciation and amortization — 4,048.2 334.2 (97.1 ) 4,285.3 Depreciation and amortization — 139.2 17.3 — 156.5 General and administrative expenses 2.3 195.6 13.6 — 211.5 Interest expense (income), net — 108.7 (48.5 ) — 60.2 Equity in earnings of unconsolidated affiliates — — (19.1 ) — (19.1 ) Other expense (income), net — 0.8 (2.8 ) — (2.0 ) (Loss) income before income taxes $ (2.3 ) $ 224.5 $ 77.3 $ — $ 299.4 Benefit from (provision for) income taxes 0.6 (60.9 ) (11.7 ) — (72.0 ) Net (loss) income before equity in income from subsidiaries $ (1.7 ) $ 163.6 $ 65.6 $ — $ 227.4 Equity in income from subsidiaries, net of tax 229.4 — — (229.4 ) — Net income (loss) $ 227.7 $ 163.6 $ 65.6 $ (229.4 ) $ 227.4 Net loss attributable to non-controlling interests — — (0.3 ) — (0.3 ) Net income (loss) attributable to MasTec, Inc. $ 227.7 $ 163.6 $ 65.9 $ (229.4 ) $ 227.7 Comprehensive income (loss) $ 240.6 $ 163.6 $ 78.3 $ (242.2 ) $ 240.3 CONDENSED CONSOLIDATING BALANCE SHEETS (unaudited - in millions) As of September 30, 2019 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Assets Total current assets $ — $ 2,036.8 $ 266.5 $ (104.6 ) $ 2,198.7 Property and equipment, net — 821.7 41.2 — 862.9 Operating lease assets — 216.9 16.5 — 233.4 Goodwill and other intangible assets, net — 1,244.5 81.3 — 1,325.8 Investments in and advances to consolidated affiliates, net 1,656.2 1,118.9 843.0 (3,618.1 ) — Other long-term assets 18.4 39.2 180.2 — 237.8 Total assets $ 1,674.6 $ 5,478.0 $ 1,428.7 $ (3,722.7 ) $ 4,858.7 Liabilities and equity Total current liabilities $ — $ 1,319.2 $ 119.9 $ (104.6 ) $ 1,334.5 Long-term debt, including finance leases — 1,217.6 3.5 — 1,221.1 Long-term operating lease liabilities — 146.8 12.5 — 159.3 Other long-term liabilities — 454.6 9.8 — 464.4 Total liabilities $ — $ 3,138.2 $ 145.7 $ (104.6 ) $ 3,179.3 Total equity $ 1,674.6 $ 2,339.8 $ 1,283.0 $ (3,618.1 ) $ 1,679.3 Total liabilities and equity $ 1,674.6 $ 5,478.0 $ 1,428.7 $ (3,722.7 ) $ 4,858.7 As of December 31, 2018 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Assets Total current assets $ — $ 1,993.0 $ 248.5 $ (72.5 ) $ 2,169.0 Property and equipment, net — 699.2 48.6 — 747.8 Goodwill and other intangible assets, net — 1,188.0 81.7 — 1,269.7 Investments in and advances to consolidated affiliates, net 1,373.1 1,138.4 816.9 (3,328.4 ) — Other long-term assets 16.8 42.0 194.6 — 253.4 Total assets $ 1,389.9 $ 5,060.6 $ 1,390.3 $ (3,400.9 ) $ 4,440.0 Liabilities and equity Total current liabilities $ — $ 1,185.9 $ 170.2 $ (72.5 ) $ 1,283.6 Long-term debt, including finance leases — 1,319.4 4.9 — 1,324.2 Other long-term liabilities — 429.2 10.8 — 440.1 Total liabilities $ — $ 2,934.5 $ 185.9 $ (72.5 ) $ 3,047.9 Total equity $ 1,389.9 $ 2,126.1 $ 1,204.4 $ (3,328.4 ) $ 1,392.0 Total liabilities and equity $ 1,389.9 $ 5,060.6 $ 1,390.3 $ (3,400.9 ) $ 4,440.0 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (unaudited - in millions) For the Nine Months Ended September 30, 2019 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Net cash provided by operating activities $ — $ 416.5 $ 24.9 $ — $ 441.4 Cash flows from investing activities: Cash paid for acquisitions, net of cash acquired — (94.6 ) — — (94.6 ) Capital expenditures — (81.5 ) (3.6 ) — (85.1 ) Proceeds from sale of property and equipment — 17.5 9.6 — 27.1 Payments for other investments — (4.3 ) (1.3 ) — (5.6 ) Proceeds from other investments — 10.8 3.9 — 14.7 Net cash (used in) provided by investing activities $ — $ (152.1 ) $ 8.6 $ — $ (143.5 ) Cash flows from financing activities: Proceeds from credit facilities — 2,175.7 10.0 — 2,185.7 Repayments of credit facilities — (2,362.0 ) (10.0 ) — (2,372.0 ) Repayments of other borrowings, net — (0.3 ) — — (0.3 ) Payments of finance lease obligations — (57.5 ) (1.5 ) — (59.0 ) Payments of acquisition-related contingent consideration — (29.3 ) — — (29.3 ) Proceeds from non-controlling interests — — 0.6 — 0.6 Repurchases of common stock (5.7 ) — — — (5.7 ) Proceeds from stock-based awards, net 3.4 — — — 3.4 Other financing activities, net — (5.5 ) — — (5.5 ) Net financing activities and advances from (to) consolidated affiliates 2.3 21.4 (23.7 ) — — Net cash used in financing activities $ — $ (257.5 ) $ (24.6 ) $ — $ (282.0 ) Effect of currency translation on cash — — (0.2 ) — (0.2 ) Net increase in cash and cash equivalents $ — $ 6.9 $ 8.7 $ — $ 15.7 Cash and cash equivalents - beginning of period $ — $ 11.9 $ 15.6 $ — $ 27.4 Cash and cash equivalents - end of period $ — $ 18.8 $ 24.3 $ — $ 43.1 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (unaudited - in millions) For the Nine Months Ended September 30, 2018 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Net cash (used in) provided by operating activities $ — $ (105.3 ) $ 132.1 $ — $ 26.8 Cash flows from investing activities: Cash paid for acquisitions, net of cash acquired — (6.7 ) — — (6.7 ) Capital expenditures — (130.1 ) (4.1 ) — (134.2 ) Proceeds from sale of property and equipment — 20.2 9.5 — 29.7 Payments for other investments — (11.8 ) (24.5 ) — (36.3 ) Proceeds from other investments — — 5.4 — 5.4 Net cash used in investing activities $ — $ (128.4 ) $ (13.7 ) $ — $ (142.1 ) Cash flows from financing activities: Proceeds from credit facilities — 2,396.7 25.9 — 2,422.6 Repayments of credit facilities — (1,971.2 ) (26.2 ) — (1,997.4 ) Repayments of other borrowings, net — (15.5 ) (0.4 ) — (15.8 ) Payments of finance lease obligations — (49.8 ) (4.7 ) — (54.6 ) Payments of acquisition-related contingent consideration — (15.9 ) — — (15.9 ) Repurchases of common stock (198.4 ) — — — (198.4 ) Distributions to non-controlling interests — (0.6 ) — — (0.6 ) Proceeds from stock-based awards, net 3.1 — — — 3.1 Net financing activities and advances from (to) consolidated affiliates 195.3 (71.5 ) (123.8 ) — — Net cash provided by (used in) financing activities $ — $ 272.2 $ (129.2 ) $ — $ 142.9 Effect of currency translation on cash — — 0.6 — 0.6 Net increase (decrease) in cash and cash equivalents $ — $ 38.5 $ (10.2 ) $ — $ 28.2 Cash and cash equivalents - beginning of period $ — $ 10.0 $ 30.3 $ — $ 40.3 Cash and cash equivalents - end of period $ — $ 48.5 $ 20.1 $ — $ 68.5 |
Business, Basis of Presentati_2
Business, Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying consolidated balance sheet as of December 31, 2018 is derived from the Company’s audited financial statements as of that date. Because certain information and footnote disclosures have been condensed or omitted, these consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2018 contained in the Company’s 2018 Annual Report on Form 10-K (the “ 2018 Form 10-K”). In management’s opinion, all normal and recurring adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been included. When necessary, certain prior year amounts have been reclassified to conform to the current period presentation. Interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. The Company believes that the disclosures made in these consolidated financial statements are adequate to make the information not misleading. |
Reclassifications | When necessary, certain prior year amounts have been reclassified to conform to the current period presentation. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include MasTec, Inc. and its subsidiaries and include the accounts of all majority owned subsidiaries over which the Company exercises control and, when applicable, entities in which the Company has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. Other parties’ interests in entities that MasTec consolidates are reported as non-controlling interests within equity. Net income or loss attributable to non-controlling interests is reported as a separate line item below net income or loss. The Company’s investments in entities for which the Company does not have a controlling interest, but over which it has the ability to exert significant influence, are accounted for using the equity method of accounting. For equity investees in which the Company has an undivided interest in the assets, liabilities and profits or losses of an unincorporated entity, but the Company does not exercise control over the entity, the Company consolidates its proportional interest in the accounts of the entity. |
Equity Method Investments | The Company’s investments in entities for which the Company does not have a controlling interest, but over which it has the ability to exert significant influence, are accounted for using the equity method of accounting. |
Unincorporated Entities, Proportionate Consolidation | For equity investees in which the Company has an undivided interest in the assets, liabilities and profits or losses of an unincorporated entity, but the Company does not exercise control over the entity, the Company consolidates its proportional interest in the accounts of the entity. |
Translation of Foreign Currencies | Translation of Foreign Currencies |
Management Estimates | Management Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based on historical experience and various other assumptions, the results of which form the basis of making judgments about the Company’s operating results and the carrying values of assets and liabilities that are not readily apparent from other sources. Key estimates include: the recognition of revenue and project profit or loss, which the Company defines as project revenue, less project costs of revenue, including project-related depreciation, in particular, on construction contracts accounted for under the cost-to-cost method, for which the recorded amounts require estimates of costs to complete and the amount and probability of variable consideration included in the contract transaction price; fair value estimates, including those related to acquisitions, valuations of goodwill and intangible assets, acquisition-related contingent consideration and equity investments; allowances for doubtful accounts; asset lives used in computing depreciation and amortization; fair values of financial instruments; self-insurance liabilities; other accruals and allowances; income taxes; and the estimated effects of litigation and other contingencies. While management believes that such estimates are reasonable when considered in conjunction with the Company’s consolidated financial position and results of operations taken as a whole, actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from contracts with customers under Accounting Standards Codification (“ASC”) Topic 606 (“Topic 606”). Under Topic 606, revenue is recognized when, or as, control of promised goods and services is transferred to customers, and the amount of revenue recognized reflects the consideration to which an entity expects to be entitled in exchange for the goods and services transferred. Revenue is primarily recognized by the Company over time utilizing the cost-to-cost measure of progress, which best depicts the continuous transfer of control of goods or services to the customer, and correspondingly, when performance obligations are satisfied for the related contracts. Contracts. The Company derives revenue primarily from construction projects performed under: (i) master and other service agreements, which provide a menu of available services in a specific geographic territory that are utilized on an as-needed basis, and are typically priced using either a time and materials, or a fixed price per unit basis; and (ii) contracts for specific projects requiring the construction and installation of an entire infrastructure system, or specified units within an infrastructure system, which are subject to multiple pricing options, including fixed price, unit price, time and materials, or cost plus a markup. Revenue derived from projects performed under master service and other service agreements totaled 32% of consolidated revenue for both the three month periods ended September 30, 2019 and 2018 , and totaled 35% and 36% for the nine month periods ended September 30, 2019 and 2018 , respectively. For certain master service and other service agreements under which the Company performs installation and maintenance services, primarily for install-to-the-home service providers in its Communications segment, revenue is recognized at a point in time. This is generally when the work order has been fulfilled, which is typically the same day the work is initiated. Point in time revenue accounted for approximately 4% and 6% of consolidated revenue for the three month periods ended September 30, 2019 and 2018 , respectively, and accounted for approximately 5% and 7% for the nine month periods ended September 30, 2019 and 2018 , respectively. Substantially all of the Company’s other revenue is recognized over time. The cost estimation process for recognizing revenue over time under the cost-to-cost method is based on the professional knowledge and experience of the Company’s project managers, engineers and financial professionals. Management reviews estimates of total contract transaction price and total project costs on an ongoing basis. Changes in job performance, job conditions and management’s assessment of expected variable consideration are factors that influence estimates of the total contract transaction price, total costs to complete those contracts and the Company’s profit recognition. Changes in these factors could result in revisions to revenue in the period in which the revisions are determined, which could materially affect the Company’s consolidated results of operations for that period. Provisions for losses on uncompleted contracts are recorded in the period in which such losses are determined. For both the nine month periods ended September 30, 2019 and 2018 , project profit was affected by less than 5% as a result of changes in contract estimates included in projects that were in process as of December 31, 2018 and 2017 . Revenue recognized for the three month periods ended September 30, 2019 and 2018 as a result of changes in revenue estimates, including from variable consideration, from performance obligations satisfied or partially satisfied in prior periods totaled approximately $13.3 million and $72.7 million , respectively, and totaled $52.2 million and $55.6 million for the nine month periods ended September 30, 2019 and 2018 , respectively. The Company may incur certain costs that can be capitalized, such as initial set-up or mobilization costs. Such costs, which are amortized over the life of the respective projects, were not material for the three or nine month periods ended September 30, 2019 and 2018 . Performance Obligations. A performance obligation is a contractual promise to transfer a distinct good or service to a customer, and is the unit of account under Topic 606. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. The vast majority of the Company’s performance obligations are completed within one year . Remaining performance obligations represent the amount of unearned transaction prices under contracts for which work is wholly or partially unperformed, including the Company’s share of unearned transaction prices from its proportionately consolidated non-controlled joint ventures. As of September 30, 2019 , the amount of the Company’s remaining performance obligations was $6.0 billion . The Company expects to recognize approximately $1.3 billion of its remaining performance obligations as revenue during 2019 , with the majority of the remaining balance to be recognized in 2020 . Variable Consideration. Transaction prices for the Company’s contracts may include variable consideration, which comprises items such as change orders, claims and incentives. Management estimates variable consideration for a performance obligation utilizing estimation methods that it believes best predict the amount of consideration to which the Company will be entitled. Management’s estimates of variable consideration and the determination of whether to include estimated amounts in transaction prices are based largely on engineering studies and legal opinions, past practices with the customer, specific discussions, correspondence or preliminary negotiations with the customer and all other relevant information that is reasonably available at the time of the estimate. To the extent unapproved change orders, claims and other variable consideration reflected in transaction prices are not resolved in the Company’s favor, or to the extent incentives reflected in transaction prices are not earned, there could be reductions in, or reversals of, previously recognized revenue. As of September 30, 2019 and December 31, 2018 , the Company included approximately $26 million and $56 million , respectively, of change orders and/or claims in transaction prices for certain contracts that were in the process of being resolved in the ordinary course of business, including through negotiation, arbitration and other proceedings. These transaction price adjustments are included within costs and earnings in excess of billings or accounts receivable, net of allowance, as appropriate. As of both September 30, 2019 and December 31, 2018 , these change orders and/or claims were primarily related to certain projects in the Company’s Oil and Gas segment. The Company actively engages with its customers to complete the final approval process, and generally expects these processes to be completed within one year . Amounts ultimately realized upon final acceptance by customers could be higher or lower than such estimated amounts. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements See the recent accounting pronouncements discussion below for information pertaining to the effects of recently adopted and other recent accounting pronouncements, as updated from the discussion in the Company’s 2018 Form 10-K. Accounting Pronouncements Adopted in 2019 Leases. I n February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) , which, together with its related clarifying ASUs (collectively, “ASU 2016-02”), provided revised guidance for lease accounting and related disclosure requirements, including a requirement for lessees to recognize right-of-use assets and lease liabilities on the balance sheet for leases with durations greater than twelve months. Under ASU 2016-02, leases are classified by lessees as either finance or operating leases. Lease expense is recognized based on an effective interest method for finance leases, and on a straight-line basis over the term of the lease for operating leases. The Company adopted ASU 2016-02 using the modified retrospective method during the first quarter of 2019, without adjusting comparative periods in the financial statements. The most significant effect of the new guidance was the recognition of operating lease right-of-use assets and a liability for operating leases. The accounting for finance leases (or, under previous guidance, capital leases) was substantially unchanged. The Company elected to utilize the package of practical expedients that allowed entities to: (1) not reassess whether any expired or existing contracts were or contained leases; (2) retain the existing classification of lease contracts as of the date of adoption; (3) not reassess initial direct costs for any existing leases; and (4) not separate non-lease components for all classes of leased assets. The Company recognized approximately $230 million of lease assets and liabilities for operating leases upon adoption of ASU 2016-02. The adoption of Topic 842 did not have a material effect on the Company's results of operations or cash flows. For additional information about the Company’s leases, see Note 8 - Lease Obligations . Reclassification of Tax Effects from Other Comprehensive Income. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”) . ASU 2018-02, which the Company adopted during the first quarter of 2019, permitted entities to reclassify the tax effects related to the change in the federal tax rate as a result of the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) from accumulated other comprehensive income to retained earnings. The Company elected not to reclassify these tax effects, therefore, this ASU had no effect on its consolidated financial statements. Other Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . This ASU, together with its related clarifying ASUs (collectively, “ASU 2016-13”), introduced an expected credit loss methodology for the measurement and recognition of credit losses on most financial assets, including trade and financing receivables. The current expected credit loss methodology, which is based on historical experience, current conditions and reasonable and supportable forecasts, replaces the probable/incurred loss model for measuring and recognizing expected losses under current GAAP, and could result in earlier recognition of credit losses. ASU 2016-13 also requires enhanced disclosures pertaining to significant estimates and judgments used in estimating credit losses under the current expected credit loss methodology. ASU 2016-13 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with the cumulative effect of adoption recorded as an adjustment to retained earnings, if applicable. ASU 2016-13, which the Company will adopt in the first quarter of 2020, is not expected to have a material effect on the Company’s consolidated financial statements. The Company is currently evaluating updates to its processes and controls in preparation for adoption of this ASU. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Information | The following table provides details underlying the Company’s earnings per share calculations for the periods indicated (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Net income attributable to MasTec: Net income - basic and diluted (a) $ 128,596 $ 120,666 $ 291,418 $ 227,718 Weighted average shares outstanding: Weighted average shares outstanding - basic 75,217 78,096 75,131 79,399 Dilutive common stock equivalents 717 1,105 629 1,085 Weighted average shares outstanding - diluted 75,934 79,201 75,760 80,484 (a) Calculated as total net income less amounts attributable to non-controlling interests. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Segment | The following table provides balances for goodwill by reportable segment as of September 30, 2019 (in millions): Communications Oil and Gas Electrical Transmission Power Generation and Industrial Total Goodwill Goodwill, gross $ 472.6 $ 494.6 $ 149.9 $ 143.1 $ 1,260.2 Accumulated impairment loss — (119.3 ) — — (119.3 ) Goodwill, net $ 472.6 $ 375.3 $ 149.9 $ 143.1 $ 1,140.9 |
Rollforward of Other Intangible Assets | The following table provides a reconciliation of changes in other intangible assets, net, for the period indicated (in millions): Other Intangible Assets Non-Amortizing Amortizing Trade Names Pre-Qualifications Customer Relationships and Backlog Other (a) Total Other intangible assets, gross, as of December 31, 2018 $ 34.5 $ 74.0 $ 224.4 $ 21.1 $ 354.0 Accumulated amortization (170.0 ) (14.6 ) (184.6 ) Other intangible assets, net, as of December 31, 2018 $ 34.5 $ 74.0 $ 54.4 $ 6.5 $ 169.4 Additions from new business combinations — — 27.0 1.6 28.6 Measurement period adjustments (b) — — (0.3 ) — (0.3 ) Amortization expense (12.9 ) (1.3 ) (14.2 ) Currency translation adjustments — 1.3 0.1 0.0 1.4 Other intangible assets, net, as of September 30, 2019 $ 34.5 $ 75.3 $ 68.3 $ 6.8 $ 184.9 (a) Consists principally of trade names and non-compete agreements. (b) Represents adjustments to preliminary estimates of fair value within the measurement period of up to one year from the date of acquisition. |
Accounts Receivable, Net of A_2
Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net of Allowance, and Contract Assets | The following table provides details of accounts receivable, net of allowance and contract assets (together, “accounts receivable, net”) as of the dates indicated (in millions): September 30, December 31, Contract billings $ 745.5 $ 687.6 Less allowance for doubtful accounts (14.3 ) (16.3 ) Accounts receivable, net of allowance $ 731.2 $ 671.3 Retainage 372.3 230.2 Costs and earnings in excess of billings 849.8 1,022.5 Retainage and costs and earnings in excess of billings (together, “contract assets”) $ 1,222.1 $ 1,252.7 Accounts receivable, net $ 1,953.3 $ 1,924.0 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | The following table provides details of property and equipment, net, including property and equipment held under finance leases as of the dates indicated (in millions): September 30, December 31, Land $ 4.6 $ 4.6 Buildings and leasehold improvements 35.0 30.3 Machinery and equipment 1,584.7 1,391.8 Office furniture and equipment 181.3 166.7 Construction in progress 31.2 20.1 Total property and equipment $ 1,836.8 $ 1,613.5 Less accumulated depreciation and amortization (973.9 ) (865.7 ) Property and equipment, net $ 862.9 $ 747.8 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values of Debt | The following table provides details of the carrying values of debt as of the dates indicated (in millions): Description Maturity Date September 30, December 31, Senior secured credit facility: September 19, 2024 Revolving loans $ 251.1 $ 456.9 Term loan 400.0 376.9 4.875% Senior Notes March 15, 2023 400.0 400.0 Finance lease and other obligations 282.6 183.2 Total long-term debt obligations $ 1,333.7 $ 1,417.0 Less unamortized deferred financing costs (13.1 ) (10.1 ) Total debt, net of deferred financing costs $ 1,320.6 $ 1,406.9 Current portion of long-term debt 99.5 82.7 Long-term debt $ 1,221.1 $ 1,324.2 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Commitments, Finance Leases | Future minimum lease commitments as of September 30, 2019 were as follows (in millions): Finance Leases Operating Leases 2019, remaining three months $ 28.5 $ 24.3 2020 107.4 82.7 2021 93.7 59.9 2022 54.9 36.4 2023 15.5 19.7 Thereafter 0.5 40.9 Total minimum lease payments $ 300.5 $ 263.9 Less amounts representing interest (18.3 ) (25.5 ) Total lease obligations, net of interest $ 282.2 $ 238.4 Less current portion 99.3 79.2 Long-term portion of lease obligations, net of interest $ 182.9 $ 159.3 |
Schedule of Future Minimum Lease Commitments, Operating Leases | Future minimum lease commitments as of September 30, 2019 were as follows (in millions): Finance Leases Operating Leases 2019, remaining three months $ 28.5 $ 24.3 2020 107.4 82.7 2021 93.7 59.9 2022 54.9 36.4 2023 15.5 19.7 Thereafter 0.5 40.9 Total minimum lease payments $ 300.5 $ 263.9 Less amounts representing interest (18.3 ) (25.5 ) Total lease obligations, net of interest $ 282.2 $ 238.4 Less current portion 99.3 79.2 Long-term portion of lease obligations, net of interest $ 182.9 $ 159.3 |
Stock-Based Compensation and _2
Stock-Based Compensation and Other Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Activity, Restricted Shares | Activity, restricted shares: (a) Restricted Per Share Weighted Average Grant Date Fair Value Non-vested restricted shares, as of December 31, 2018 1,270,233 $ 31.80 Granted 226,999 47.03 Vested (335,989 ) 14.10 Canceled/forfeited (10,800 ) 33.87 Non-vested restricted shares, as of September 30, 2019 1,150,443 $ 39.95 (a) Includes 2,400 and 18,700 restricted stock units as of September 30, 2019 and December 31, 2018 , respectively. |
Schedule of Employee Stock Purchase Plans | The following table provides details pertaining to the Company’s ESPPs for the periods indicated: For the Nine Months Ended September 30, 2019 2018 Cash proceeds (in millions) $ 3.4 $ 3.1 Common shares issued 87,014 79,459 Weighted average price per share $ 39.23 $ 39.36 Weighted average per share grant date fair value $ 9.97 $ 9.62 |
Other Retirement Plans (Tables)
Other Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Multiemployer Plans [Abstract] | |
Schedule of Covered Employees and Contributions, Multiemployer Plans | Total contributions to multiemployer plans and the related number of employees covered by these plans, including with respect to the Company’s Canadian operations, for the periods indicated were as follows: Multiemployer Plans Covered Employees Contributions (in millions) Low High Pension Other Multiemployer Total For the Three Months Ended September 30: 2019 3,814 5,349 $ 23.0 $ 1.2 $ 24.2 2018 6,183 6,336 $ 35.0 $ 0.9 $ 35.9 For the Nine Months Ended September 30: 2019 1,626 5,349 $ 51.7 $ 4.0 $ 55.7 2018 2,018 6,336 $ 66.0 $ 5.1 $ 71.1 |
Segments and Related Informat_2
Segments and Related Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Reportable Segment | For the Three Months Ended September 30, For the Nine Months Ended September 30, Revenue: 2019 2018 2019 2018 Communications (a) $ 679.5 $ 661.7 $ 1,944.9 $ 1,907.5 Oil and Gas 972.5 1,035.9 2,530.5 2,341.6 Electrical Transmission 103.0 99.1 298.3 297.6 Power Generation and Industrial 261.7 179.6 701.3 443.2 Other 0.1 1.6 0.1 3.7 Eliminations (0.2 ) (0.7 ) (1.1 ) (1.7 ) Consolidated revenue $ 2,016.6 $ 1,977.2 $ 5,474.0 $ 4,991.9 (a) Revenue generated primarily by utilities customers represented 14.9% and 13.9% of Communications segment revenue for the three month periods ended September 30, 2019 and 2018 , respectively, and represented 15.3% and 15.1% for the nine month periods ended September 30, 2019 and 2018 , respectively. For the Three Months Ended September 30, For the Nine Months Ended September 30, EBITDA: 2019 2018 2019 2018 Communications $ 57.1 $ 74.8 $ 154.8 $ 230.6 Oil and Gas 212.9 155.8 499.6 311.5 Electrical Transmission 7.8 3.1 20.3 5.0 Power Generation and Industrial 2.3 9.7 14.4 24.3 Other 6.7 7.0 19.4 19.7 Corporate (38.9 ) (27.6 ) (87.7 ) (75.0 ) Consolidated EBITDA $ 247.9 $ 222.8 $ 620.8 $ 516.1 For the Three Months Ended September 30, For the Nine Months Ended September 30, Depreciation and Amortization: 2019 2018 2019 2018 Communications $ 15.7 $ 14.5 $ 45.7 $ 44.4 Oil and Gas 28.8 30.6 97.7 82.1 Electrical Transmission 5.1 4.8 14.8 15.2 Power Generation and Industrial 3.3 3.4 9.7 9.9 Other 0.0 0.0 0.1 0.1 Corporate 2.3 1.6 6.2 4.8 Consolidated depreciation and amortization $ 55.2 $ 54.9 $ 174.2 $ 156.5 |
Reconciliation of Consolidated Income before Income Taxes to EBITDA | For the Three Months Ended September 30, For the Nine Months Ended September 30, EBITDA Reconciliation: 2019 2018 2019 2018 Income before income taxes $ 173.4 $ 145.6 $ 388.5 $ 299.4 Plus: Interest expense, net 19.3 22.3 58.2 60.2 Depreciation and amortization 55.2 54.9 174.2 156.5 Consolidated EBITDA $ 247.9 $ 222.8 $ 620.8 $ 516.1 |
Schedule of Significant Customers, Revenue Concentration Information | Revenue concentration information for significant customers as a percentage of total consolidated revenue was as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, Customer: 2019 2018 2019 2018 AT&T (including DIRECTV ® ) (a) 18% 21% 20% 24% Equitrans Midstream Corporation/EQT Corporation (b) 17% 28% 12% 18% Energy Transfer affiliates (c) 7% 12% 7% 17% (a) The Company’s relationship with AT&T is based upon multiple separate master service and other service agreements, including for installation and maintenance services, as well as construction/installation contracts for AT&T’s: (i) wireless business; (ii) wireline/fiber businesses; and (iii) various install-to-the-home businesses, including DIRECTV ® . Revenue from AT&T is included in the Communications segment. (b) The Company's relationship with Equitrans Midstream Corporation and its affiliates, which was spun off from EQT Corporation and its affiliates in 2018, is based upon various construction contracts for pipeline activities, for which the related revenue is included in the Oil and Gas segment. (c) The Company's relationship with Energy Transfer affiliates is based upon various construction contracts for pipeline activities with Energy Transfer Operating, L.P., and its subsidiaries and affiliates, all of which are consolidated by Energy Transfer L.P. |
Supplemental Guarantor Financ_2
Supplemental Guarantor Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Unaudited Financial Statements, Supplemental Guarantor Information [Abstract] | |
Condensed Unaudited Consolidating Statements of Operations and Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited - in millions) For the Three Months Ended September 30, 2019 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Revenue $ — $ 1,916.8 $ 126.4 $ (26.6 ) $ 2,016.6 Costs of revenue, excluding depreciation and amortization — 1,609.2 108.0 (26.6 ) 1,690.6 Depreciation and amortization — 51.8 3.4 — 55.2 General and administrative expenses 0.8 72.2 4.1 — 77.1 Interest expense (income), net — 35.4 (16.1 ) — 19.3 Equity in earnings of unconsolidated affiliates — — (7.0 ) — (7.0 ) Other expense (income), net — 8.6 (0.6 ) — 8.0 (Loss) income before income taxes $ (0.8 ) $ 139.6 $ 34.6 $ — $ 173.4 Benefit from (provision for) income taxes 0.2 (39.1 ) (4.4 ) — (43.3 ) Net (loss) income before equity in income from subsidiaries $ (0.6 ) $ 100.5 $ 30.2 $ — $ 130.1 Equity in income from subsidiaries, net of tax 129.2 — — (129.2 ) — Net income (loss) $ 128.6 $ 100.5 $ 30.2 $ (129.2 ) $ 130.1 Net income attributable to non-controlling interests — — 1.5 — 1.5 Net income (loss) attributable to MasTec, Inc. $ 128.6 $ 100.5 $ 28.7 $ (129.2 ) $ 128.6 Comprehensive income (loss) $ 121.2 $ 100.5 $ 22.7 $ (121.7 ) $ 122.6 For the Three Months Ended September 30, 2018 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Revenue $ — $ 1,894.5 $ 102.3 $ (19.6 ) $ 1,977.2 Costs of revenue, excluding depreciation and amortization — 1,603.0 98.0 (19.6 ) 1,681.4 Depreciation and amortization — 49.7 5.2 — 54.9 General and administrative expenses 0.7 73.2 6.4 — 80.3 Interest expense (income), net — 38.7 (16.4 ) — 22.3 Equity in earnings of unconsolidated affiliates — — (7.7 ) — (7.7 ) Other expense (income), net — 2.1 (1.8 ) — 0.3 (Loss) income before income taxes $ (0.7 ) $ 127.8 $ 18.6 $ — $ 145.6 Benefit from (provision for) income taxes 0.2 (35.9 ) 10.6 — (25.1 ) Net (loss) income before equity in income from subsidiaries $ (0.5 ) $ 91.9 $ 29.2 $ — $ 120.5 Equity in income from subsidiaries, net of tax 121.2 — — (121.2 ) — Net income (loss) $ 120.7 $ 91.9 $ 29.2 $ (121.2 ) $ 120.5 Net loss attributable to non-controlling interests — — (0.1 ) — (0.1 ) Net income (loss) attributable to MasTec, Inc. $ 120.7 $ 91.9 $ 29.3 $ (121.2 ) $ 120.7 Comprehensive income (loss) $ 124.9 $ 91.9 $ 33.6 $ (125.5 ) $ 124.9 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited - in millions) For the Nine Months Ended September 30, 2019 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Revenue $ — $ 5,164.0 $ 388.9 $ (78.9 ) $ 5,474.0 Costs of revenue, excluding depreciation and amortization — 4,354.7 360.2 (78.9 ) 4,636.0 Depreciation and amortization — 161.7 12.5 — 174.2 General and administrative expenses 2.3 205.6 12.7 — 220.6 Interest expense (income), net — 105.6 (47.4 ) — 58.2 Equity in losses (earnings) of unconsolidated affiliates — 0.1 (19.9 ) — (19.8 ) Other expense (income), net — 53.9 (37.6 ) — 16.3 (Loss) income before income taxes $ (2.3 ) $ 282.4 $ 108.4 $ — $ 388.5 Benefit from (provision for) income taxes 0.7 (90.1 ) (5.7 ) — (95.1 ) Net (loss) income before equity in income from subsidiaries $ (1.6 ) $ 192.3 $ 102.7 $ — $ 293.4 Equity in income from subsidiaries, net of tax 293.0 — — (293.0 ) — Net income (loss) $ 291.4 $ 192.3 $ 102.7 $ (293.0 ) $ 293.4 Net income attributable to non-controlling interests — — 2.0 — 2.0 Net income (loss) attributable to MasTec, Inc. $ 291.4 $ 192.3 $ 100.7 $ (293.0 ) $ 291.4 Comprehensive income (loss) $ 269.8 $ 192.3 $ 81.1 $ (271.4 ) $ 271.8 For the Nine Months Ended September 30, 2018 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Revenue $ — $ 4,717.0 $ 372.0 $ (97.1 ) $ 4,991.9 Costs of revenue, excluding depreciation and amortization — 4,048.2 334.2 (97.1 ) 4,285.3 Depreciation and amortization — 139.2 17.3 — 156.5 General and administrative expenses 2.3 195.6 13.6 — 211.5 Interest expense (income), net — 108.7 (48.5 ) — 60.2 Equity in earnings of unconsolidated affiliates — — (19.1 ) — (19.1 ) Other expense (income), net — 0.8 (2.8 ) — (2.0 ) (Loss) income before income taxes $ (2.3 ) $ 224.5 $ 77.3 $ — $ 299.4 Benefit from (provision for) income taxes 0.6 (60.9 ) (11.7 ) — (72.0 ) Net (loss) income before equity in income from subsidiaries $ (1.7 ) $ 163.6 $ 65.6 $ — $ 227.4 Equity in income from subsidiaries, net of tax 229.4 — — (229.4 ) — Net income (loss) $ 227.7 $ 163.6 $ 65.6 $ (229.4 ) $ 227.4 Net loss attributable to non-controlling interests — — (0.3 ) — (0.3 ) Net income (loss) attributable to MasTec, Inc. $ 227.7 $ 163.6 $ 65.9 $ (229.4 ) $ 227.7 Comprehensive income (loss) $ 240.6 $ 163.6 $ 78.3 $ (242.2 ) $ 240.3 |
Condensed Unaudited Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS (unaudited - in millions) As of September 30, 2019 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Assets Total current assets $ — $ 2,036.8 $ 266.5 $ (104.6 ) $ 2,198.7 Property and equipment, net — 821.7 41.2 — 862.9 Operating lease assets — 216.9 16.5 — 233.4 Goodwill and other intangible assets, net — 1,244.5 81.3 — 1,325.8 Investments in and advances to consolidated affiliates, net 1,656.2 1,118.9 843.0 (3,618.1 ) — Other long-term assets 18.4 39.2 180.2 — 237.8 Total assets $ 1,674.6 $ 5,478.0 $ 1,428.7 $ (3,722.7 ) $ 4,858.7 Liabilities and equity Total current liabilities $ — $ 1,319.2 $ 119.9 $ (104.6 ) $ 1,334.5 Long-term debt, including finance leases — 1,217.6 3.5 — 1,221.1 Long-term operating lease liabilities — 146.8 12.5 — 159.3 Other long-term liabilities — 454.6 9.8 — 464.4 Total liabilities $ — $ 3,138.2 $ 145.7 $ (104.6 ) $ 3,179.3 Total equity $ 1,674.6 $ 2,339.8 $ 1,283.0 $ (3,618.1 ) $ 1,679.3 Total liabilities and equity $ 1,674.6 $ 5,478.0 $ 1,428.7 $ (3,722.7 ) $ 4,858.7 As of December 31, 2018 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Assets Total current assets $ — $ 1,993.0 $ 248.5 $ (72.5 ) $ 2,169.0 Property and equipment, net — 699.2 48.6 — 747.8 Goodwill and other intangible assets, net — 1,188.0 81.7 — 1,269.7 Investments in and advances to consolidated affiliates, net 1,373.1 1,138.4 816.9 (3,328.4 ) — Other long-term assets 16.8 42.0 194.6 — 253.4 Total assets $ 1,389.9 $ 5,060.6 $ 1,390.3 $ (3,400.9 ) $ 4,440.0 Liabilities and equity Total current liabilities $ — $ 1,185.9 $ 170.2 $ (72.5 ) $ 1,283.6 Long-term debt, including finance leases — 1,319.4 4.9 — 1,324.2 Other long-term liabilities — 429.2 10.8 — 440.1 Total liabilities $ — $ 2,934.5 $ 185.9 $ (72.5 ) $ 3,047.9 Total equity $ 1,389.9 $ 2,126.1 $ 1,204.4 $ (3,328.4 ) $ 1,392.0 Total liabilities and equity $ 1,389.9 $ 5,060.6 $ 1,390.3 $ (3,400.9 ) $ 4,440.0 |
Condensed Unaudited Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (unaudited - in millions) For the Nine Months Ended September 30, 2019 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Net cash provided by operating activities $ — $ 416.5 $ 24.9 $ — $ 441.4 Cash flows from investing activities: Cash paid for acquisitions, net of cash acquired — (94.6 ) — — (94.6 ) Capital expenditures — (81.5 ) (3.6 ) — (85.1 ) Proceeds from sale of property and equipment — 17.5 9.6 — 27.1 Payments for other investments — (4.3 ) (1.3 ) — (5.6 ) Proceeds from other investments — 10.8 3.9 — 14.7 Net cash (used in) provided by investing activities $ — $ (152.1 ) $ 8.6 $ — $ (143.5 ) Cash flows from financing activities: Proceeds from credit facilities — 2,175.7 10.0 — 2,185.7 Repayments of credit facilities — (2,362.0 ) (10.0 ) — (2,372.0 ) Repayments of other borrowings, net — (0.3 ) — — (0.3 ) Payments of finance lease obligations — (57.5 ) (1.5 ) — (59.0 ) Payments of acquisition-related contingent consideration — (29.3 ) — — (29.3 ) Proceeds from non-controlling interests — — 0.6 — 0.6 Repurchases of common stock (5.7 ) — — — (5.7 ) Proceeds from stock-based awards, net 3.4 — — — 3.4 Other financing activities, net — (5.5 ) — — (5.5 ) Net financing activities and advances from (to) consolidated affiliates 2.3 21.4 (23.7 ) — — Net cash used in financing activities $ — $ (257.5 ) $ (24.6 ) $ — $ (282.0 ) Effect of currency translation on cash — — (0.2 ) — (0.2 ) Net increase in cash and cash equivalents $ — $ 6.9 $ 8.7 $ — $ 15.7 Cash and cash equivalents - beginning of period $ — $ 11.9 $ 15.6 $ — $ 27.4 Cash and cash equivalents - end of period $ — $ 18.8 $ 24.3 $ — $ 43.1 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (unaudited - in millions) For the Nine Months Ended September 30, 2018 MasTec, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated MasTec, Inc. Net cash (used in) provided by operating activities $ — $ (105.3 ) $ 132.1 $ — $ 26.8 Cash flows from investing activities: Cash paid for acquisitions, net of cash acquired — (6.7 ) — — (6.7 ) Capital expenditures — (130.1 ) (4.1 ) — (134.2 ) Proceeds from sale of property and equipment — 20.2 9.5 — 29.7 Payments for other investments — (11.8 ) (24.5 ) — (36.3 ) Proceeds from other investments — — 5.4 — 5.4 Net cash used in investing activities $ — $ (128.4 ) $ (13.7 ) $ — $ (142.1 ) Cash flows from financing activities: Proceeds from credit facilities — 2,396.7 25.9 — 2,422.6 Repayments of credit facilities — (1,971.2 ) (26.2 ) — (1,997.4 ) Repayments of other borrowings, net — (15.5 ) (0.4 ) — (15.8 ) Payments of finance lease obligations — (49.8 ) (4.7 ) — (54.6 ) Payments of acquisition-related contingent consideration — (15.9 ) — — (15.9 ) Repurchases of common stock (198.4 ) — — — (198.4 ) Distributions to non-controlling interests — (0.6 ) — — (0.6 ) Proceeds from stock-based awards, net 3.1 — — — 3.1 Net financing activities and advances from (to) consolidated affiliates 195.3 (71.5 ) (123.8 ) — — Net cash provided by (used in) financing activities $ — $ 272.2 $ (129.2 ) $ — $ 142.9 Effect of currency translation on cash — — 0.6 — 0.6 Net increase (decrease) in cash and cash equivalents $ — $ 38.5 $ (10.2 ) $ — $ 28.2 Cash and cash equivalents - beginning of period $ — $ 10.0 $ 30.3 $ — $ 40.3 Cash and cash equivalents - end of period $ — $ 48.5 $ 20.1 $ — $ 68.5 |
Business, Basis of Presentati_3
Business, Basis of Presentation and Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Number of reportable segments | segment | 5 | |||||
Revenue [Line Items] | ||||||
Revenue recognition, performance obligations satisfied in previous periods, revenue recognized (in dollars) | $ 13,300 | $ 72,700 | $ 52,200 | $ 55,600 | ||
Contract with customer, unapproved change orders and/or claims, amount (in dollars) | 26,000 | 26,000 | $ 56,000 | |||
Operating Leased Assets [Line Items] | ||||||
Operating lease assets | 233,423 | 233,423 | $ 0 | |||
Operating lease liabilities | $ 238,400 | $ 238,400 | ||||
Maximum [Member] | ||||||
Revenue [Line Items] | ||||||
Revenue recognition, changes In contract estimates, cost-to-cost method, financial effect, percentage | 5.00% | 5.00% | ||||
Change order or claim approval process, term within which expected to be completed (in years) | 1 year | |||||
Maximum [Member] | Plan [Member] | ||||||
Revenue [Line Items] | ||||||
Revenue recognition, performance obligations, completion period (in years) | 1 year | 1 year | ||||
ASU 2016-02 [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Operating lease assets | $ 230,000 | |||||
Operating lease liabilities | $ 230,000 | |||||
Revenue Benchmark [Member] | Concentration Risk from Type of Arrangement [Member] | Master Service and Other Service Agreements [Member] | ||||||
Revenue [Line Items] | ||||||
Concentration risk, percentage of total | 32.00% | 32.00% | 35.00% | 36.00% | ||
Revenue Benchmark [Member] | Concentration Risk from Type of Arrangement [Member] | Master Service and Other Service Agreements [Member] | Point in Time [Member] | ||||||
Revenue [Line Items] | ||||||
Concentration risk, percentage of total | 4.00% | 6.00% | 5.00% | 7.00% |
Business, Basis of Presentati_4
Business, Basis of Presentation and Significant Accounting Policies (Remaining Performance Obligations) (Narrative) (Details) $ in Billions | Sep. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition, remaining performance obligations, contract price allocated (in dollars) | $ 6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition, remaining performance obligations, contract price allocated (in dollars) | $ 1.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue recognition, remaining performance obligations, completion period (in months) | 3 months |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share Information) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Net income attributable to MasTec: | |||||
Net income - basic (in dollars) | [1] | $ 128,596 | $ 120,666 | $ 291,418 | $ 227,718 |
Net income - diluted (in dollars) | [1] | $ 128,596 | $ 120,666 | $ 291,418 | $ 227,718 |
Weighted average shares outstanding: | |||||
Weighted average shares outstanding - basic | 75,217 | 78,096 | 75,131 | 79,399 | |
Dilutive common stock equivalents (in shares) | 717 | 1,105 | 629 | 1,085 | |
Weighted average shares outstanding - diluted | 75,934 | 79,201 | 75,760 | 80,484 | |
[1] | Calculated as total net income less amounts attributable to non-controlling interests. |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Schedule of Goodwill by Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill [Line Items] | ||
Goodwill, gross | $ 1,260,200 | |
Accumulated impairment losses | (119,300) | |
Goodwill, net | 1,140,874 | $ 1,100,350 |
Communications [Member] | ||
Goodwill [Line Items] | ||
Goodwill, gross | 472,600 | |
Accumulated impairment losses | 0 | |
Goodwill, net | 472,600 | |
Oil and Gas [Member] | ||
Goodwill [Line Items] | ||
Goodwill, gross | 494,600 | |
Accumulated impairment losses | (119,300) | |
Goodwill, net | 375,300 | |
Electrical Transmission [Member] | ||
Goodwill [Line Items] | ||
Goodwill, gross | 149,900 | |
Accumulated impairment losses | 0 | |
Goodwill, net | 149,900 | |
Power Generation and Industrial [Member] | ||
Goodwill [Line Items] | ||
Goodwill, gross | 143,100 | |
Accumulated impairment losses | 0 | |
Goodwill, net | $ 143,100 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill [Line Items] | ||||
Goodwill, additions from new business combinations | $ 40.3 | |||
Goodwill, measurement period adjustments | (0.2) | |||
Amortization expense, intangible assets | $ 4.7 | $ 5.2 | 14.2 | $ 15.4 |
Goodwill, Gross [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, currency translation gains (losses) | 3.7 | |||
Goodwill, Accumulated Impairment Loss [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, currency translation gains (losses) | $ 3.3 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Rollforward of Other Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||
Other Intangible Assets [Line Items] | ||||||
Other intangible assets, gross | $ 354,000 | |||||
Accumulated amortization | (184,600) | |||||
Other Intangible Assets [Rollforward] | ||||||
Other intangible assets, net, beginning balance | $ 169,370 | |||||
Additions from new business combinations | 28,600 | |||||
Measurement period adjustments | [1] | (300) | ||||
Amortization expense | $ (4,700) | $ (5,200) | (14,200) | $ (15,400) | ||
Currency translation adjustments | 1,400 | |||||
Other intangible assets, net, ending balance | 184,938 | 184,938 | ||||
Customer Relationships and Backlog [Member] | ||||||
Other Intangible Assets [Line Items] | ||||||
Other intangible assets, amortizing, gross | 224,400 | |||||
Accumulated amortization | (170,000) | |||||
Other Intangible Assets [Rollforward] | ||||||
Other intangible assets, net, amortizing, beginning balance | 54,400 | |||||
Additions from new business combinations, amortizing intangible assets | 27,000 | |||||
Measurement period adjustments, amortizing intangible assets | [1] | (300) | ||||
Amortization expense | (12,900) | |||||
Currency translation adjustments, amortizing intangible assets | 100 | |||||
Other intangible assets, net, amortizing, ending balance | 68,300 | 68,300 | ||||
Other Amortizing Intangible Assets [Member] | ||||||
Other Intangible Assets [Line Items] | ||||||
Other intangible assets, amortizing, gross | [2] | 21,100 | ||||
Accumulated amortization | [2] | (14,600) | ||||
Other Intangible Assets [Rollforward] | ||||||
Other intangible assets, net, amortizing, beginning balance | [2] | 6,500 | ||||
Additions from new business combinations, amortizing intangible assets | [2] | 1,600 | ||||
Measurement period adjustments, amortizing intangible assets | [1],[2] | 0 | ||||
Amortization expense | [2] | (1,300) | ||||
Currency translation adjustments, amortizing intangible assets | [2] | 0 | ||||
Other intangible assets, net, amortizing, ending balance | [2] | 6,800 | 6,800 | |||
Trade Names [Member] | ||||||
Other Intangible Assets [Line Items] | ||||||
Other intangible assets, non-amortizing | 34,500 | 34,500 | 34,500 | |||
Other Intangible Assets [Rollforward] | ||||||
Other intangible assets, non-amortizing, beginning balance | 34,500 | |||||
Additions from new business combinations, non-amortizing intangible assets | 0 | |||||
Measurement period adjustments, non-amortizing intangible assets | [1] | 0 | ||||
Currency translation adjustments, non-amortizing intangible assets | 0 | |||||
Other intangible assets, non-amortizing, ending balance | 34,500 | 34,500 | ||||
Pre-Qualifications [Member] | ||||||
Other Intangible Assets [Line Items] | ||||||
Other intangible assets, non-amortizing | 75,300 | 74,000 | $ 74,000 | |||
Other Intangible Assets [Rollforward] | ||||||
Other intangible assets, non-amortizing, beginning balance | 74,000 | |||||
Additions from new business combinations, non-amortizing intangible assets | 0 | |||||
Measurement period adjustments, non-amortizing intangible assets | [1] | 0 | ||||
Currency translation adjustments, non-amortizing intangible assets | 1,300 | |||||
Other intangible assets, non-amortizing, ending balance | $ 75,300 | $ 75,300 | ||||
[1] | Represents adjustments to preliminary estimates of fair value within the measurement period of up to one year from the date of acquisition. | |||||
[2] | Consists principally of trade names and non-compete agreements. |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (2019 Acquisitions) (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)yracquisition | |
Business Combinations [Line Items] | |
Business combinations, number of acquisitions | acquisition | 3 |
Business combinations, contingent consideration liabilities, range of potential undiscounted earn-out liabilities, high | $ 225 |
2019 Acquisitions [Member] | |
Business Combinations [Line Items] | |
Business combinations, cash paid | 89 |
Business combinations, contingent consideration, earn-out liabilities | 16 |
Business combinations, contingent consideration liabilities, range of potential undiscounted earn-out liabilities, high | $ 40 |
2019 Acquisitions [Member] | Expected Term [Member] | Minimum [Member] | |
Business Combinations [Line Items] | |
Business combinations, contingent consideration, earn-out period (in years) | yr | 3 |
2019 Acquisitions [Member] | Expected Term [Member] | Maximum [Member] | |
Business Combinations [Line Items] | |
Business combinations, contingent consideration, earn-out period (in years) | yr | 5 |
Oil and Gas [Member] | |
Business Combinations [Line Items] | |
Business combinations, number of acquisitions | acquisition | 1 |
Communications [Member] | |
Business Combinations [Line Items] | |
Business combinations, number of acquisitions | acquisition | 2 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets (2018 Acquisitions) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2019 | |
Business Combinations [Line Items] | ||
Business combinations, contingent consideration liabilities, range of potential undiscounted earn-out liabilities, high | $ 225 | |
Construction Management Firm Specializing in Steel Building Systems [Member] | ||
Business Combinations [Line Items] | ||
Business combinations, percentage of interests acquired | 100.00% | |
2018 Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Business combinations, cash paid | $ 5.1 | |
Business combinations, contingent consideration, earn-out liabilities | 1.5 | |
Business combinations, contingent consideration liabilities, range of potential undiscounted earn-out liabilities, high | $ 5 |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets (Pro Forma Financial Information and Acquisition Results) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pro Forma Financial Information and Acquisition Results [Abstract] | ||||
Business combinations, unaudited supplemental pro forma revenue | $ 2,015.3 | $ 2,030.3 | $ 5,474 | $ 5,139.6 |
Business combinations, unaudited supplemental pro forma net income (loss) | 127.8 | 122.9 | 293.7 | 235.7 |
Business combinations, consolidated acquisition-related revenue | 41.7 | 18.4 | 116.9 | 141 |
Business combinations, consolidated acquisition-related income (loss) | $ 1.5 | $ 0.9 | $ (5.9) | $ (1.9) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Acquisition-Related Contingent Consideration) (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Financial Instruments Measured on a Recurring Basis [Line Items] | |||||
Acquisition-related contingent consideration liabilities, range of potential undiscounted earn-out liabilities, low | $ 48,000,000 | $ 48,000,000 | |||
Acquisition-related contingent consideration liabilities, range of potential undiscounted earn-out liabilities, high | 225,000,000 | 225,000,000 | |||
Acquisition-related contingent consideration liabilities, net increase (decrease), measurement period adjustments | (200,000) | ||||
Earn-Out Liabilities [Member] | |||||
Fair Value, Financial Instruments Measured on a Recurring Basis [Line Items] | |||||
Acquisition-related contingent consideration liabilities, estimated fair value | 151,900,000 | 151,900,000 | $ 118,100,000 | ||
Acquisition-related contingent consideration liabilities, additions from new business combinations | 0 | $ 0 | 16,200,000 | $ 1,500,000 | |
Acquisition-related contingent consideration liabilities, net increase (decrease), fair value adjustments, expense (income) | 11,200,000 | 5,900,000 | 47,600,000 | 10,300,000 | |
Acquisition-related contingent consideration liabilities, net increase (decrease), measurement period adjustments | 2,200,000 | 4,200,000 | |||
Acquisition-related contingent consideration liabilities, payments | 0 | $ 0 | 30,000,000 | $ 23,100,000 | |
Earn-Out Liabilities [Member] | Other Current Liabilities [Member] | |||||
Fair Value, Financial Instruments Measured on a Recurring Basis [Line Items] | |||||
Acquisition-related contingent consideration liabilities, estimated fair value | $ 57,500,000 | $ 57,500,000 | $ 29,600,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Equity Investments) (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||
Equity investments, adjusted cost basis, amount | $ 18,000,000 | $ 18,000,000 | |
Equity investments, impairments | 0 | $ 0 | |
Equity Investee [Member] | |||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||
Equity investments, carrying value | $ 184,000,000 | 197,000,000 | |
Waha JVs [Member] | |||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||
Equity method investment, ownership percentage | 33.00% | ||
Waha JVs [Member] | Equity Investee [Member] | |||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||
Equity investments, carrying value | $ 162,000,000 | $ 168,000,000 | |
CCI [Member] | |||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||
Equity investments, adjusted cost basis, amount | $ 15,000,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (The Waha JVs) (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)pipeline | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)pipeline | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||||
Equity method investments, equity in earnings (losses) | $ 6,966,000 | $ 7,671,000 | $ 19,778,000 | $ 19,080,000 | |
Unrealized gains (losses) on equity investee activity, net of tax | (7,108,000) | 3,137,000 | (21,302,000) | 13,790,000 | |
Equity Investee [Member] | |||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||||
Equity method investments, net investment | $ 184,000,000 | $ 184,000,000 | $ 197,000,000 | ||
Waha JVs [Member] | |||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||||
Number of pipelines in operation | pipeline | 2 | 2 | |||
Equity method investments, equity contributions | $ 0 | 0 | $ 1,300,000 | 24,500,000 | |
Equity method investments, equity in earnings (losses) | 6,900,000 | 7,700,000 | 19,800,000 | 19,100,000 | |
Equity method investments, cumulative undistributed earnings | 42,200,000 | 42,200,000 | |||
Equity method investments, distributions of earnings received, operating cash flows | 1,500,000 | 3,200,000 | 7,500,000 | 10,900,000 | |
Unrealized gains (losses) on equity investee activity, before tax | (9,400,000) | 4,100,000 | (28,200,000) | 18,100,000 | |
Unrealized gains (losses) on equity investee activity, net of tax | (7,100,000) | $ 3,100,000 | (21,300,000) | $ 13,800,000 | |
Waha JVs [Member] | Equity Investee [Member] | |||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||||
Equity method investments, net investment | $ 162,000,000 | $ 162,000,000 | $ 168,000,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Other Investments - Pensare) (Narrative) (Details) - Pensare [Member] $ / shares in Units, warrant in Millions, $ in Millions | Sep. 30, 2019warrant$ / shares | Sep. 30, 2017USD ($) |
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||
Equity investment and warrants, amount paid (in dollars) | $ | $ 2 | |
Equity investment, ownership percentage | 21.00% | 4.00% |
Derivative instruments, number held | warrant | 2 | |
Plan [Member] | ||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||
Warrants, exercise price (in dollars per share) | $ / shares | $ 11.50 | |
Common Stock [Member] | Plan [Member] | ||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||
Investment, restriction period (in years) | 1 year |
Fair Value of FInancial Instr_6
Fair Value of FInancial Instruments (Other Investments - Lifeshield) (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Feb. 28, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | |
Fair Value, Financial Instruments Measured on a Recurring Basis [Line Items] | ||||
Other investment, proceeds | $ 14,705 | $ 5,415 | ||
Lifeshield [Member] | ||||
Fair Value, Financial Instruments Measured on a Recurring Basis [Line Items] | ||||
Fair value investment, carrying amount | $ 10,000 | |||
Fair value investment, ownership percentage | 40.00% | |||
Other investment, proceeds | $ 11,000 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Senior Notes) (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||
4.875% Senior Notes, gross carrying amount | $ 400 | $ 400 |
Senior Notes [Member] | ||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||
4.875% Senior Notes, estimated fair value | $ 407.5 | $ 392 |
4.875% Senior Notes [Member] | Senior Notes [Member] | ||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||
Debt instrument, interest rate (percentage) | 4.875% |
Accounts Receivable, Net of A_3
Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities (Schedule of Accounts Receivable, Net of Allowance and Contract Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts Receivable, Net of Allowance, and Contract Assets [Abstract] | ||
Contract billings | $ 745,500 | $ 687,600 |
Less allowance for doubtful accounts | (14,300) | (16,300) |
Accounts receivable, net of allowance | 731,200 | 671,300 |
Retainage | 372,300 | 230,200 |
Costs and earnings in excess of billings | 849,800 | 1,022,500 |
Retainage and costs and earnings in excess of billings (together, “contract assets”) | 1,222,100 | 1,252,700 |
Accounts receivable, net | $ 1,953,340 | $ 1,923,970 |
Accounts Receivable, Net of A_4
Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Schedule of Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities [Line Items] | |||||
Retainage, expected collection period (in years) | 1 year | ||||
Provisions for doubtful accounts | $ 1,300 | $ 3,500 | |||
Billings in excess of costs and earnings | $ 156,929 | 156,929 | $ 227,056 | ||
Revenue recognition, BIEC, revenue recognized | 24,100 | $ 25,400 | 189,000 | 125,600 | |
Contract liabilities | 183,500 | 183,500 | $ 231,600 | ||
Interest expense, net | 19,297 | 22,330 | 58,178 | 60,183 | |
Accounts Receivable Financing Arrangements [Member] | |||||
Schedule of Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities [Line Items] | |||||
Interest expense, net | $ 2,400 | $ 3,200 | $ 8,100 | $ 8,200 | |
Minimum [Member] | |||||
Schedule of Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities [Line Items] | |||||
Retainage, percentage of contract billings | 5.00% | ||||
Maximum [Member] | |||||
Schedule of Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities [Line Items] | |||||
Retainage, percentage of contract billings | 10.00% |
Property and Equipment, Net (Sc
Property and Equipment, Net (Schedule of Property and Equipment, Net) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property and Equipment [Line Items] | ||
Property and equipment | $ 1,836,800 | $ 1,613,500 |
Less accumulated depreciation and amortization | (973,900) | (865,700) |
Property and equipment, net | 862,923 | 747,808 |
Land [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment | 4,600 | 4,600 |
Building and Leasehold Improvements [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment | 35,000 | 30,300 |
Machinery and Equipment [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment | 1,584,700 | 1,391,800 |
Office Furniture and Equipment [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment | 181,300 | 166,700 |
Construction in Progress [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment | $ 31,200 | $ 20,100 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Property and Equipment [Line Items] | ||||||
Capitalized internal-use software, gross | $ 126,900 | $ 122,000 | $ 126,900 | $ 126,900 | ||
Capitalized internal-use software, net | 25,100 | 26,500 | 25,100 | 25,100 | ||
Depreciation and amortization | 55,196 | $ 54,863 | 174,171 | $ 156,478 | ||
Accrued capital expenditures | $ 8,000 | $ 4,000 | ||||
Property and Equipment [Member] | ||||||
Property and Equipment [Line Items] | ||||||
Depreciation and amortization | $ 50,500 | $ 49,700 | $ 160,000 | $ 141,000 |
Debt (Schedule of Carrying Valu
Debt (Schedule of Carrying Values of Debt) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 19, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Finance lease and other obligations | $ 282,600 | $ 183,200 | |
Total long-term debt obligations | 1,333,700 | 1,417,000 | |
Less unamortized deferred financing costs | (13,100) | (10,100) | |
Total debt, net of deferred financing costs | 1,320,600 | 1,406,900 | |
Current portion of long-term debt | 99,513 | 82,655 | |
Long-term debt | $ 1,221,127 | 1,324,223 | |
Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maturity date | Sep. 19, 2024 | ||
Credit Facility [Member] | Revolving Loans [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt obligations | $ 251,100 | 456,900 | |
Credit Facility [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt obligations | 400,000 | $ 400,000 | 376,900 |
Senior Notes [Member] | 4.875% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt obligations | $ 400,000 | $ 400,000 | |
Debt instrument, interest rate (percentage) | 4.875% | ||
Debt instrument, maturity date | Mar. 15, 2023 |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facility) (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 19, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2019 |
Debt Instrument [Line Items] | ||||||
Line of credit facility, letters of credit issued | $ 142.4 | $ 128.4 | $ 142.4 | |||
Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maturity date | Sep. 19, 2024 | |||||
Line of credit facility, maximum borrowing capacity | $ 1,750 | $ 1,500 | ||||
Line of credit, revolving loan sublimit, canadian dollars or mexican pesos | $ 300 | $ 300 | ||||
Line of credit facility, unused facility fee (percentage) | 0.225% | 0.35% | ||||
Line of credit facility, letters of credit issued | $ 102.2 | $ 88.2 | $ 102.2 | |||
Credit Facility [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, unused facility fee (percentage) | 0.20% | 0.20% | ||||
Percentage of consolidated EBITDA threshold, combined subsidiary guarantors | 15.00% | 15.00% | ||||
Consolidated interest coverage ratio | 3 | 3 | ||||
Credit Facility [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, unused facility fee (percentage) | 0.30% | 0.40% | ||||
Percentage of consolidated EBITDA threshold, combined subsidiary guarantors | 80.00% | 80.00% | ||||
Maximum consolidated leverage ratio | 3.50 | 3.50 | ||||
Credit Facility [Member] | Eurocurrency Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Base rate option three, debt instrument, basis spread on variable rate | 1.00% | |||||
Credit Facility [Member] | Eurocurrency Rate [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, interest rate description | 1.25% | 1.25% | ||||
Credit Facility [Member] | Eurocurrency Rate [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, interest rate description | 1.75% | 2.00% | ||||
Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, interest rate description | 0.25% | 0.25% | ||||
Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, interest rate description | 0.75% | 1.00% | ||||
Credit Facility [Member] | Federal Funds Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Base rate option one, debt instrument, basis spread on variable rate | 0.50% | |||||
Credit Facility [Member] | Plan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Permitted acquisitions amount | $ 100 | |||||
Credit Facility [Member] | Plan [Member] | Maximum [Member] | Permitted Acquisition [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum consolidated leverage ratio | 4 | 4 | ||||
Number of fiscal quarters subsequent to quarter in which right was exercised | 4 | 4 | ||||
Number of times right may be exercised | 2 | 2 | ||||
Credit Facility [Member] | Revolving Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,350 | |||||
Long-term debt obligations | $ 251.1 | $ 456.9 | $ 251.1 | |||
Line of credit facility, amount of borrowings denominated in foreign currencies | 116 | 128 | 116 | |||
Line of credit facility, remaining borrowing capacity | 996.7 | 554.9 | 996.7 | |||
Line of credit facility, remaining borrowing capacity available in either Canadian dollars or Mexican pesos | $ 183.9 | $ 91.9 | $ 183.9 | |||
Credit Facility [Member] | Revolving Loans [Member] | Weighted Average [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, interest rate (percentage) | 3.417% | 4.234% | 3.417% | |||
Credit Facility [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 400 | |||||
Long-term debt obligations | $ 400 | $ 400 | $ 376.9 | $ 400 | ||
Line of credit facility, interest rate (percentage) | 3.419% | 4.272% | 3.419% | |||
Credit Facility [Member] | Term Loan [Member] | Forecast [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, term loan, amount of quarterly principal installment payments | $ 5 | $ 2.5 | ||||
Credit Facility [Member] | Swing Line Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, revolving loan sublimit | $ 125 | $ 125 | ||||
Credit Facility [Member] | Letters of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 650 | 650 | ||||
Line of credit, letter of credit sublimit, canadian dollars or mexican pesos | 200 | 200 | ||||
Line of credit facility, capacity available for letters of credit | $ 547.8 | $ 554.9 | $ 547.8 | |||
Credit Facility [Member] | Letters of Credit [Member] | Commercial and/or Financial Standby [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, interest rate (percentage) | 1.375% | 1.75% | 1.375% | |||
Credit Facility [Member] | Letters of Credit [Member] | Performance Standby [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, interest rate (percentage) | 0.50% | 0.875% | 0.50% | |||
Credit Facility [Member] | Letters of Credit [Member] | Minimum [Member] | Commercial and/or Financial Standby [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, interest rate (percentage) | 1.25% | 1.25% | ||||
Credit Facility [Member] | Letters of Credit [Member] | Minimum [Member] | Performance Standby [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, interest rate (percentage) | 0.375% | 0.50% | ||||
Credit Facility [Member] | Letters of Credit [Member] | Maximum [Member] | Commercial and/or Financial Standby [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, interest rate (percentage) | 1.75% | 2.00% | ||||
Credit Facility [Member] | Letters of Credit [Member] | Maximum [Member] | Performance Standby [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, interest rate (percentage) | 0.75% | 1.00% |
Debt (Other Credit Facilities)
Debt (Other Credit Facilities) (Narrative) (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Line of credit facility, letters of credit issued | $ 142,400,000 | $ 128,400,000 |
Foreign Line of Credit [Member] | Canadian Dollars [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 0 | |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, letters of credit issued | $ 40,200,000 | $ 40,200,000 |
Line of Credit [Member] | Letters of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, interest rate (percentage) | 0.50% | 0.75% |
Line of credit facility, maximum borrowing capacity | $ 50,000,000 |
Debt (Debt Guarantees and Coven
Debt (Debt Guarantees and Covenants) (Narrative) (Details) | Sep. 30, 2019 |
Senior Notes [Member] | 4.875% Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate (percentage) | 4.875% |
Debt (Additional Information) (
Debt (Additional Information) (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt instruments, accrued interest payable (in dollars) | $ 1.6 | $ 7.4 |
Senior Notes [Member] | 4.875% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 4.875% |
Lease Obligations (Additional L
Lease Obligations (Additional Lease Information) (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Finance leases, weighted average remaining lease term (in years) | 3 years |
Finance leases, weighted average discount rate, percent | 4.10% |
Operating leases, weighted average remaining lease term (in years) | 4 years 3 months 18 days |
Operating leases, weighted average discount rate, percent | 4.20% |
Leases not yet commenced, future lease obligations | $ 18 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Leases not yet commenced, lease terms | 1 year |
Minimum [Member] | Facility Leases [Member] | |
Lessee, Lease, Description [Line Items] | |
Leases, renewal term | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Leases, remaining lease terms | 10 years |
Leases not yet commenced, lease terms | 5 years |
Maximum [Member] | Equipment Leases [Member] | |
Lessee, Lease, Description [Line Items] | |
Leases, renewal term | 1 year |
Maximum [Member] | Facility Leases [Member] | |
Lessee, Lease, Description [Line Items] | |
Leases, renewal term | 5 years |
Lease Obligations (Finance Leas
Lease Obligations (Finance Leases) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Finance leases, assets, gross | $ 415.5 | $ 415.5 | $ 337.6 |
Finance leases, assets, net | 340.4 | 340.4 | $ 246.8 |
Finance leases, assets, depreciation | $ 13.1 | $ 34.2 |
Lease Obligations (Operating Le
Lease Obligations (Operating Leases) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Operating Leased Assets [Line Items] | ||||||
Operating lease assets | $ 233,423 | $ 233,423 | $ 0 | |||
Operating leases, additions | 20,000 | 86,000 | ||||
Operating leases, variable lease costs | 3,100 | 7,500 | ||||
Operating leases, short-term leases, expense | 144,000 | 352,400 | ||||
Lease Term in Excess of One Year [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Operating leases, expense | $ 29,500 | $ 84,800 | ||||
Operating leases, rent and related expense | $ 33,100 | $ 85,400 | ||||
Lease Term in Excess of One Year [Member] | Minimum [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Operating leases, term of contract (in years) | 1 year | 1 year | 1 year | 1 year | ||
Lease Term of One Year or Less [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Operating leases, rent and related expense | $ 142,700 | $ 339,400 | ||||
Lease Term of One Year or Less [Member] | Maximum [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Operating leases, term of contract (in years) | 1 year | 1 year | 1 year | 1 year | ||
ASU 2016-02 [Member] | ||||||
Operating Leased Assets [Line Items] | ||||||
Operating lease assets | $ 230,000 |
Lease Obligations (Schedule of
Lease Obligations (Schedule of Future Minimum Lease Commitments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finance Leases | ||
2019, remaining three months | $ 28,500 | |
2020 | 107,400 | |
2021 | 93,700 | |
2022 | 54,900 | |
2023 | 15,500 | |
Thereafter | 500 | |
Total minimum lease payments | 300,500 | |
Less amounts representing interest | (18,300) | |
Total lease obligations, net of interest | 282,200 | |
Less current portion | 99,300 | |
Long-term portion of lease obligations, net of interest | 182,900 | |
Operating Leases | ||
2019, remaining three months | 24,300 | |
2020 | 82,700 | |
2021 | 59,900 | |
2022 | 36,400 | |
2023 | 19,700 | |
Thereafter | 40,900 | |
Total minimum lease payments | 263,900 | |
Less amounts representing interest | (25,500) | |
Total lease obligations, net of interest | 238,400 | |
Less current portion | 79,150 | $ 0 |
Long-term portion of lease obligations, net of interest | $ 159,283 | $ 0 |
Stock-Based Compensation and _3
Stock-Based Compensation and Other Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
Stock-based compensation plans, number of shares available for future grant | 4,118,000 | 4,118,000 | ||
Non-cash stock-based compensation expense | $ 4.2 | $ 3.5 | $ 12.1 | $ 10.1 |
Stock-based compensation, income tax benefits | $ 1 | $ 0.9 | 5.3 | 2.7 |
Stock-based compensation, vested awards, net tax benefits | $ 2.3 | $ 0.3 |
Stock-Based Compensation and _4
Stock-Based Compensation and Other Employee Benefit Plans (Restricted Shares) (Narrative) (Details) - Restricted Shares [Member] - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Stock-Based Compensation and Other Employee Benefit Plans [Line Items] | |||||
Stock-based compensation awards, unearned compensation | $ 23.6 | $ 23.6 | $ 23.6 | ||
Stock-based compensation awards, unearned compensation, weighted average expected recognition period (in years) | 2 years | ||||
Stock-based compensation, vested awards, intrinsic value | $ 0.2 | $ 0.6 | $ 14.1 | $ 2.3 |
Stock-Based Compensation and _5
Stock-Based Compensation and Other Employee Benefit Plans (Schedule of Activity, Restricted Shares) (Details) | 9 Months Ended | |
Sep. 30, 2019$ / sharesshares | ||
Restricted Shares [Member] | ||
Restricted Shares | ||
Non-vested restricted shares, beginning balance (in shares) | 1,270,233 | [1] |
Granted (in shares) | 226,999 | |
Vested (in shares) | (335,989) | |
Canceled/forfeited (in shares) | (10,800) | |
Non-vested restricted shares, ending balance (in shares) | 1,150,443 | [1] |
Per Share Weighted Average Grant Date Fair Value | ||
Non-vested restricted shares, per share weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 31.80 | |
Granted (in dollars per share) | $ / shares | 47.03 | |
Vested (in dollars per share) | $ / shares | 14.10 | |
Canceled/forfeited (in dollars per share) | $ / shares | 33.87 | |
Non-vested restricted shares, per share weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 39.95 | |
Restricted Stock Units [Member] | ||
Restricted Shares | ||
Non-vested restricted shares, beginning balance (in shares) | 18,700 | |
Non-vested restricted shares, ending balance (in shares) | 2,400 | |
[1] | Includes 2,400 and 18,700 restricted stock units as of September 30, 2019 and December 31, 2018 , respectively. |
Stock-Based Compensation and _6
Stock-Based Compensation and Other Employee Benefit Plans (Schedule of Employee Stock Purchase Plans) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Stock-Based Compensation and Other Employee Benefit Plans [Line Items] | ||
Cash proceeds (in dollars) | $ 3,380 | $ 3,086 |
Common shares issued (in shares) | 87,014 | 79,459 |
Weighted average price per share purchased under employee stock purchase plans (in dollars per share) | $ 39.23 | $ 39.36 |
Weighted average per share grant date fair value (in dollars per share) | $ 9.97 | $ 9.62 |
Employee Stock Purchase Plans [Member] | ||
Stock-Based Compensation and Other Employee Benefit Plans [Line Items] | ||
Cash proceeds (in dollars) | $ 3,400 | $ 3,100 |
Other Retirement Plans (Schedul
Other Retirement Plans (Schedule of Covered Employees and Contributions, Multiemployer Plans) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)employee | Sep. 30, 2018USD ($)employee | Sep. 30, 2019USD ($)employee | Sep. 30, 2018USD ($)employee | |
Covered Employees and Contributions, Multiemployer Plans [Line Items] | ||||
Multiemployer plans, contributions (in dollars) | $ 24.2 | $ 35.9 | $ 55.7 | $ 71.1 |
Multiemployer Plans, Pension [Member] | ||||
Covered Employees and Contributions, Multiemployer Plans [Line Items] | ||||
Multiemployer plans, contributions (in dollars) | 23 | 35 | 51.7 | 66 |
Multiemployer Plans, Other Multiemployer [Member] | ||||
Covered Employees and Contributions, Multiemployer Plans [Line Items] | ||||
Multiemployer plans, contributions (in dollars) | $ 1.2 | $ 0.9 | $ 4 | $ 5.1 |
Workforce Subject to Collective Bargaining Arrangements [Member] | Unionized Employees [Member] | Low [Member] | ||||
Covered Employees and Contributions, Multiemployer Plans [Line Items] | ||||
Multiemployer plans, covered employees (in number of employees) | employee | 3,814 | 6,183 | 1,626 | 2,018 |
Workforce Subject to Collective Bargaining Arrangements [Member] | Unionized Employees [Member] | High [Member] | ||||
Covered Employees and Contributions, Multiemployer Plans [Line Items] | ||||
Multiemployer plans, covered employees (in number of employees) | employee | 5,349 | 6,336 | 5,349 | 6,336 |
Equity (Share Activity) (Narrat
Equity (Share Activity) (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 21, 2018 | Sep. 11, 2018 | Dec. 31, 2016 | |
Equity, Treasury Stock [Line Items] | |||||||||
Treasury stock acquired (in shares) | 0 | 1,600,000 | 2,000,000 | 2,300,000 | 4,300,000 | ||||
Treasury stock acquired, value | $ 70,137,000 | $ 98,400,000 | $ 602,000 | $ 198,448,000 | |||||
Share repurchase program, amount available for future share repurchases, value | $ 128,800,000 | 128,800,000 | |||||||
September 2018 Share Repurchase Program [Member] | |||||||||
Equity, Treasury Stock [Line Items] | |||||||||
Share repurchase program, amount authorized, value | $ 150,000,000 | ||||||||
Share repurchase program, amount available for future share repurchases, value | 28,800,000 | 28,800,000 | |||||||
2016 Share Repurchase Program [Member] | |||||||||
Equity, Treasury Stock [Line Items] | |||||||||
Share repurchase program, amount authorized, value | $ 100,000,000 | ||||||||
March 2018 Share Repurchase Program [Member] | |||||||||
Equity, Treasury Stock [Line Items] | |||||||||
Share repurchase program, amount authorized, value | $ 100,000,000 | ||||||||
December 2018 Share Repurchase Program [Member] | |||||||||
Equity, Treasury Stock [Line Items] | |||||||||
Share repurchase program, amount authorized, value | $ 100,000,000 | ||||||||
Share repurchase program, amount available for future share repurchases, value | $ 100,000,000 | $ 100,000,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Consolidated effective tax rate, percent | 25.00% | 17.00% | 24.00% | 24.00% |
Stock-based compensation, vested awards, excess tax benefits (in dollars) | $ 2.3 | $ 0.3 | ||
Change in tax rate, non-cash tax benefit (expense) (in dollars) | $ 16 |
Segments and Related Informat_3
Segments and Related Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segments and Related Information [Line Items] | |
Number of operating segments | 5 |
Number of reportable segments | 5 |
Segments and Related Informat_4
Segments and Related Information (Schedule of Financial Information by Reportable Segment - Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenue: | |||||
Revenue (in dollars) | $ 2,016,618 | $ 1,977,227 | $ 5,473,965 | $ 4,991,865 | |
Communications [Member] | Customer Concentration Risk [Member] | Revenue [Member] | Utilities [Member] | |||||
Revenue: | |||||
Utilities customers, percentage of Communications segment revenue | 14.90% | 13.90% | 15.30% | 15.10% | |
Reportable Segments [Member] | Communications [Member] | |||||
Revenue: | |||||
Revenue (in dollars) | [1] | $ 679,500 | $ 661,700 | $ 1,944,900 | $ 1,907,500 |
Reportable Segments [Member] | Oil and Gas [Member] | |||||
Revenue: | |||||
Revenue (in dollars) | 972,500 | 1,035,900 | 2,530,500 | 2,341,600 | |
Reportable Segments [Member] | Electrical Transmission [Member] | |||||
Revenue: | |||||
Revenue (in dollars) | 103,000 | 99,100 | 298,300 | 297,600 | |
Reportable Segments [Member] | Power Generation and Industrial [Member] | |||||
Revenue: | |||||
Revenue (in dollars) | 261,700 | 179,600 | 701,300 | 443,200 | |
Reportable Segments [Member] | Other [Member] | |||||
Revenue: | |||||
Revenue (in dollars) | 100 | 1,600 | 100 | 3,700 | |
Eliminations [Member] | |||||
Revenue: | |||||
Revenue (in dollars) | $ (200) | $ (700) | $ (1,100) | $ (1,700) | |
[1] | Revenue generated primarily by utilities customers represented 14.9% and 13.9% of Communications segment revenue for the three month periods ended September 30, 2019 and 2018 , respectively, and represented 15.3% and 15.1% for the nine month periods ended September 30, 2019 and 2018 , respectively. |
Segments and Related Informat_5
Segments and Related Information (Schedule of Financial Information by Reportable Segment - EBITDA) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
EBITDA: | ||||
EBITDA | $ 247.9 | $ 222.8 | $ 620.8 | $ 516.1 |
Reportable Segments [Member] | Communications [Member] | ||||
EBITDA: | ||||
EBITDA | 57.1 | 74.8 | 154.8 | 230.6 |
Reportable Segments [Member] | Oil and Gas [Member] | ||||
EBITDA: | ||||
EBITDA | 212.9 | 155.8 | 499.6 | 311.5 |
Reportable Segments [Member] | Electrical Transmission [Member] | ||||
EBITDA: | ||||
EBITDA | 7.8 | 3.1 | 20.3 | 5 |
Reportable Segments [Member] | Power Generation and Industrial [Member] | ||||
EBITDA: | ||||
EBITDA | 2.3 | 9.7 | 14.4 | 24.3 |
Reportable Segments [Member] | Other [Member] | ||||
EBITDA: | ||||
EBITDA | 6.7 | 7 | 19.4 | 19.7 |
Corporate [Member] | ||||
EBITDA: | ||||
EBITDA | $ (38.9) | $ (27.6) | $ (87.7) | $ (75) |
Segments and Related Informat_6
Segments and Related Information (Schedule of Financial Information by Reportable Segment - Depreciation and Amortization) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Depreciation and Amortization: | ||||
Depreciation and amortization | $ 55,196 | $ 54,863 | $ 174,171 | $ 156,478 |
Reportable Segments [Member] | Communications [Member] | ||||
Depreciation and Amortization: | ||||
Depreciation and amortization | 15,700 | 14,500 | 45,700 | 44,400 |
Reportable Segments [Member] | Oil and Gas [Member] | ||||
Depreciation and Amortization: | ||||
Depreciation and amortization | 28,800 | 30,600 | 97,700 | 82,100 |
Reportable Segments [Member] | Electrical Transmission [Member] | ||||
Depreciation and Amortization: | ||||
Depreciation and amortization | 5,100 | 4,800 | 14,800 | 15,200 |
Reportable Segments [Member] | Power Generation and Industrial [Member] | ||||
Depreciation and Amortization: | ||||
Depreciation and amortization | 3,300 | 3,400 | 9,700 | 9,900 |
Reportable Segments [Member] | Other [Member] | ||||
Depreciation and Amortization: | ||||
Depreciation and amortization | 0 | 0 | 100 | 100 |
Corporate [Member] | ||||
Depreciation and Amortization: | ||||
Depreciation and amortization | $ 2,300 | $ 1,600 | $ 6,200 | $ 4,800 |
Segments and Related Informat_7
Segments and Related Information (Reconciliation of Consolidated Income before Income Taxes to EBITDA) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
EBITDA Reconciliation: | ||||
Income before income taxes | $ 173,385 | $ 145,633 | $ 388,484 | $ 299,405 |
Interest expense, net | 19,297 | 22,330 | 58,178 | 60,183 |
Depreciation and amortization | 55,196 | 54,863 | 174,171 | 156,478 |
EBITDA | $ 247,900 | $ 222,800 | $ 620,800 | $ 516,100 |
Segments and Related Informat_8
Segments and Related Information (Foreign Operations) (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Segments and Related Information [Line Items] | ||||||
Revenue | $ 2,016,618 | $ 1,977,227 | $ 5,473,965 | $ 4,991,865 | ||
Property and equipment, net | $ 862,923 | $ 747,808 | 862,923 | 862,923 | ||
Intangible assets and goodwill, net | 1,325,800 | 1,269,700 | 1,325,800 | 1,325,800 | ||
United States [Member] | ||||||
Segments and Related Information [Line Items] | ||||||
Revenue | 2,000,000 | 1,900,000 | 5,300,000 | 4,900,000 | ||
Property and equipment, net | 831,100 | 707,400 | 831,100 | 831,100 | ||
Intangible assets and goodwill, net | 1,300,000 | 1,200,000 | 1,300,000 | 1,300,000 | ||
Foreign Operations [Member] | ||||||
Segments and Related Information [Line Items] | ||||||
Revenue | 64,100 | $ 41,400 | 191,000 | $ 101,900 | ||
Property and equipment, net | 31,800 | 40,400 | 31,800 | 31,800 | ||
Intangible assets and goodwill, net | $ 62,100 | $ 61,500 | $ 62,100 | $ 62,100 | ||
Foreign Operations [Member] | Accounts Receivable, Net, Less BIEC [Member] | Geographic Concentration Risk [Member] | ||||||
Segments and Related Information [Line Items] | ||||||
Concentration risk, percentage of total | 5.00% | 5.00% |
Segments and Related Informat_9
Segments and Related Information (Schedule of Significant Customers, Revenue Concentration Information) (Details) - Customer Concentration Risk [Member] - Revenue [Member] | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
AT&T (including DIRECTV) [Member] | |||||
Revenue, Significant Customers [Line Items] | |||||
Concentration risk, percentage of total | [1] | 18.00% | 21.00% | 20.00% | 24.00% |
Equitrans Midstream Corporation/EQT Corporation [Member] | |||||
Revenue, Significant Customers [Line Items] | |||||
Concentration risk, percentage of total | [2] | 17.00% | 28.00% | 12.00% | 18.00% |
Energy Transfer Affiliates [Member] | |||||
Revenue, Significant Customers [Line Items] | |||||
Concentration risk, percentage of total | [3] | 7.00% | 12.00% | 7.00% | 17.00% |
[1] | The Company’s relationship with AT&T is based upon multiple separate master service and other service agreements, including for installation and maintenance services, as well as construction/installation contracts for AT&T’s: (i) wireless business; (ii) wireline/fiber businesses; and (iii) various install-to-the-home businesses, including DIRECTV ® . Revenue from AT&T is included in the Communications segment. | ||||
[2] | The Company's relationship with Equitrans Midstream Corporation and its affiliates, which was spun off from EQT Corporation and its affiliates in 2018, is based upon various construction contracts for pipeline activities, for which the related revenue is included in the Oil and Gas segment. | ||||
[3] | The Company's relationship with Energy Transfer affiliates is based upon various construction contracts for pipeline activities with Energy Transfer Operating, L.P., and its subsidiaries and affiliates, all of which are consolidated by Energy Transfer L.P. |
Commitments and Contingencies (
Commitments and Contingencies (Legal, Letters of Credit, Bonds, Self-Insurance) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies [Line Items] | ||||
Letters of credit issued | $ 142.4 | $ 128.4 | ||
Self-Insurance [Member] | Other Long-Term Assets [Member] | Cash [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Cash collateral held by insurance carriers | 1.6 | 1.6 | ||
Self-Insurance [Member] | Workers' Compensation, General and Automobile Policies [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Self-insurance reserve | 119.7 | 108.9 | ||
Self-Insurance [Member] | Workers' Compensation, General and Automobile Policies [Member] | Other Long-Term Liabilities [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Self-insurance reserve, non-current | 78.5 | 70.8 | ||
Self-Insurance [Member] | Employee Group Medical Claims [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Self-insurance reserve | 4.8 | 2.9 | ||
Performance and Payment Bonds [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Bonded projects, estimated costs to complete | 178 | 53 | ||
Performance and Payment Bonds [Member] | Subsidiaries [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Outstanding bonds, amount | 430.3 | 123.6 | ||
Financial Guarantees [Member] | Self-Insurance [Member] | Workers' Compensation, General and Automobile Policies [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Letters of credit issued | 67.6 | 67.6 | ||
Surety Bonds [Member] | Self-Insurance [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Outstanding bonds, amount | $ 38.5 | $ 34.8 | ||
Canadian Acquisition Arbitration [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Favorable arbitration award | $ 60 | |||
Collections of arbitration award | 32 | |||
Canadian Acquisition Arbitration [Member] | Legal Fees [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Collections of arbitration award | $ 16 | |||
Canadian Acquisition Arbitration [Member] | Interest Costs [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Collections of arbitration award | $ 5 |
Commitments and Contingencies_2
Commitments and Contingencies (Investment Arrangements) (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Other Commitments [Line Items] | ||||
Cash | $ 43,095 | $ 27,422 | $ 68,484 | $ 40,326 |
Proportionately Consolidated Non-Controlled Joint Venture [Member] | ||||
Other Commitments [Line Items] | ||||
Cash | $ 20,300 | $ 11,800 | ||
Proportionately Consolidated Non-Controlled Joint Venture [Member] | Pacer [Member] | ||||
Other Commitments [Line Items] | ||||
Proportionately consolidated non-controlled joint venture, ownership percentage | 35.00% | |||
Proportionately Consolidated Non-Controlled Joint Venture [Member] | Joint Ventures That Provide Electrical Transmission Infrastructure Services [Member] | Minimum [Member] | ||||
Other Commitments [Line Items] | ||||
Proportionately consolidated non-controlled joint venture, ownership percentage | 85.00% | |||
Proportionately Consolidated Non-Controlled Joint Venture [Member] | Joint Ventures That Provide Electrical Transmission Infrastructure Services [Member] | Maximum [Member] | ||||
Other Commitments [Line Items] | ||||
Proportionately consolidated non-controlled joint venture, ownership percentage | 90.00% |
Commitments and Contingencies_3
Commitments and Contingencies (Other Guarantees) (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum [Member] | |
Other Guarantees [Line Items] | |
General warranty, period (in years) | 1 year |
Maximum [Member] | |
Other Guarantees [Line Items] | |
General warranty, period (in years) | 2 years |
Commitments and Contingencies_4
Commitments and Contingencies (Concentrations of Risk) (Narrative) (Details) - customer | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Concentration Risk [Line Items] | ||||||
Number of customers | 415 | |||||
Accounts Receivable, Net, Less BIEC [Member] | Credit Concentration Risk [Member] | Customers with Largest Net Accounts Receivable Positions [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Number of customers | 4 | 3 | ||||
Accounts Receivable, Net, Less BIEC [Member] | Credit Concentration Risk [Member] | Customer with Largest Net Accounts Receivable Position [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage of total | 14.00% | 26.00% | ||||
Accounts Receivable, Net, Less BIEC [Member] | Credit Concentration Risk [Member] | Customer with Second Largest Net Accounts Receivable Position [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage of total | 12.00% | 18.00% | ||||
Accounts Receivable, Net, Less BIEC [Member] | Credit Concentration Risk [Member] | Customer with Third Largest Net Accounts Receivable Position [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage of total | 12.00% | 12.00% | ||||
Accounts Receivable, Net, Less BIEC [Member] | Credit Concentration Risk [Member] | Customer With Fourth Largest Net Accounts Receivable Position [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage of total | 11.00% | |||||
Revenue [Member] | Customer Concentration Risk [Member] | Ten Largest Customers [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Number of customers | 10 | 10 | 10 | 10 | ||
Concentration risk, percentage of total | 65.00% | 76.00% | 63.00% | 73.00% |
Related Party Transactions (Man
Related Party Transactions (Management) (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)subsidiary | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Management [Member] | Equipment, Supplies and Services [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payments, related party | $ 25.5 | $ 34.2 | $ 71.8 | $ 65.9 | |
Payables, related party | 20.3 | 20.3 | $ 17.3 | ||
Revenue, related party | 0.7 | 3.2 | 1.6 | 9.4 | |
Receivables, net, related party | $ 0.1 | $ 0.1 | 0.3 | ||
Management [Member] | Acquisition of Non-Controlling Interest [Member] | |||||
Related Party Transaction [Line Items] | |||||
Number of subsidiaries | subsidiary | 1 | ||||
CCI [Member] | Immediate Family Member of Management [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity investment, ownership percentage | 15.00% | 15.00% | |||
CCI [Member] | Immediate Family Member of Management [Member] | Equipment [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payments, net of rebates, related party | $ 7.7 | $ 9 | $ 23.6 | $ 19.9 | |
Payables, related party | $ 12.3 | $ 12.3 | $ 4.9 |
Related Party Transactions (Con
Related Party Transactions (Construction Management Firm and CCI) (Narrative) (Details) - Immediate Family Member of Management [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 10 Months Ended | ||
Feb. 28, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Construction Management Firm Specializing in Steel Building Systems [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Business combinations, cash paid | $ 6.1 | |||||
Business combinations, contingent consideration, earn-out liabilities | $ 1.4 | $ 1.4 | ||||
Business combinations, notes payable assumed | 2.6 | |||||
Business combinations, interest accrued on notes payable assumed | $ 0.1 | |||||
Repayments of notes payable and interest accrued | $ 2.7 | |||||
Advances outstanding, related party | $ 0.4 | $ 0.4 | 1 | |||
CCI [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Equity investment, ownership percentage | 15.00% | 15.00% | ||||
CCI [Member] | Equipment [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments, net of rebates, related party | $ 7.7 | $ 9 | $ 23.6 | $ 19.9 | ||
Payables, related party | $ 12.3 | $ 12.3 | 4.9 | |||
Rebates receivable, related party | $ 2.9 |
Related Party Transactions (Exe
Related Party Transactions (Executive Officers) (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)employee | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)employee | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Management [Member] | Subcontracting Arrangements [Member] | |||||
Related Party Transaction [Line Items] | |||||
Number of additional management employees, subcontracting arrangement | employee | 2 | 2 | |||
Payments or expenses, related party | $ 3.1 | $ 1.1 | $ 9.3 | $ 7.8 | |
Payables, related party | 3.2 | 3.2 | $ 0.4 | ||
Chairman, Board of Directors [Member] | Lease Agreements [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payments or expenses, related party | 0.6 | 0.9 | 2 | 2 | |
Executive Officers [Member] | Related Customer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Charges, related party | 0.3 | $ 0.4 | 1.1 | $ 1.3 | |
Receivables, related party | 0.7 | 0.7 | $ 0.6 | ||
Executive Officers [Member] | Construction Services [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue, related party | 5.2 | 7.4 | |||
Receivables, related party | $ 4.6 | $ 4.6 |
Related Party Transactions (Spl
Related Party Transactions (Split Dollar Agreements) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Chairman, Board of Directors [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payments for life insurance policies | $ 0.6 | $ 0.6 | $ 1.1 | $ 1.1 | |
Chief Executive Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payments for life insurance policies | 0 | $ 0 | 0.7 | $ 0.7 | |
Executive Officers [Member] | |||||
Related Party Transaction [Line Items] | |||||
Life insurance assets, carrying amount | $ 20.3 | $ 20.3 | $ 18.5 |
Supplemental Guarantor Financ_3
Supplemental Guarantor Financial Information (Narrative) (Details) | Sep. 30, 2019 |
Senior Notes [Member] | 4.875% Senior Notes [Member] | |
Condensed Unaudited Consolidating Financial Information [Line Items] | |
Debt instrument, interest rate (percentage) | 4.875% |
Supplemental Guarantor Financ_4
Supplemental Guarantor Financial Information (Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) (Unaudited)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Condensed Unaudited Consolidating Statements of Operations and Comprehensive Income (Loss) [Line Items] | |||||
Revenue | $ 2,016,618 | $ 1,977,227 | $ 5,473,965 | $ 4,991,865 | |
Costs of revenue, excluding depreciation and amortization | 1,690,558 | 1,681,438 | 4,636,006 | 4,285,320 | |
Depreciation and amortization | 55,196 | 54,863 | 174,171 | 156,478 | |
General and administrative expenses | 77,146 | 80,311 | 220,581 | 211,535 | |
Interest expense (income), net | 19,297 | 22,330 | 58,178 | 60,183 | |
Equity in earnings of unconsolidated affiliates | (6,966) | (7,671) | (19,778) | (19,080) | |
Other expense (income), net | 8,002 | 323 | 16,323 | (1,976) | |
Income before income taxes | 173,385 | 145,633 | 388,484 | 299,405 | |
(Provision for) benefit from income taxes | (43,303) | (25,091) | (95,073) | (71,999) | |
Net income (loss) before equity in income from subsidiaries | 130,100 | 120,500 | 293,400 | 227,400 | |
Equity in income (losses) from subsidiaries, net of tax | 0 | 0 | 0 | 0 | |
Net income | 130,082 | 120,542 | 293,411 | 227,406 | |
Net income (loss) attributable to non-controlling interests | 1,486 | (124) | 1,993 | (312) | |
Net income attributable to MasTec, Inc. | [1] | 128,596 | 120,666 | 291,418 | 227,718 |
Comprehensive income (loss) | 122,640 | 124,909 | 271,788 | 240,251 | |
Reportable Legal Entities [Member] | MasTec, Inc. [Member] | |||||
Condensed Unaudited Consolidating Statements of Operations and Comprehensive Income (Loss) [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Costs of revenue, excluding depreciation and amortization | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
General and administrative expenses | 800 | 700 | 2,300 | 2,300 | |
Interest expense (income), net | 0 | 0 | 0 | 0 | |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | |
Other expense (income), net | 0 | 0 | 0 | 0 | |
Income before income taxes | (800) | (700) | (2,300) | (2,300) | |
(Provision for) benefit from income taxes | 200 | 200 | 700 | 600 | |
Net income (loss) before equity in income from subsidiaries | (600) | (500) | (1,600) | (1,700) | |
Equity in income (losses) from subsidiaries, net of tax | 129,200 | 121,200 | 293,000 | 229,400 | |
Net income | 128,600 | 120,700 | 291,400 | 227,700 | |
Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net income attributable to MasTec, Inc. | 128,600 | 120,700 | 291,400 | 227,700 | |
Comprehensive income (loss) | 121,200 | 124,900 | 269,800 | 240,600 | |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||||
Condensed Unaudited Consolidating Statements of Operations and Comprehensive Income (Loss) [Line Items] | |||||
Revenue | 1,916,800 | 1,894,500 | 5,164,000 | 4,717,000 | |
Costs of revenue, excluding depreciation and amortization | 1,609,200 | 1,603,000 | 4,354,700 | 4,048,200 | |
Depreciation and amortization | 51,800 | 49,700 | 161,700 | 139,200 | |
General and administrative expenses | 72,200 | 73,200 | 205,600 | 195,600 | |
Interest expense (income), net | 35,400 | 38,700 | 105,600 | 108,700 | |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 100 | 0 | |
Other expense (income), net | 8,600 | 2,100 | 53,900 | 800 | |
Income before income taxes | 139,600 | 127,800 | 282,400 | 224,500 | |
(Provision for) benefit from income taxes | (39,100) | (35,900) | (90,100) | (60,900) | |
Net income (loss) before equity in income from subsidiaries | 100,500 | 91,900 | 192,300 | 163,600 | |
Equity in income (losses) from subsidiaries, net of tax | 0 | 0 | 0 | 0 | |
Net income | 100,500 | 91,900 | 192,300 | 163,600 | |
Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net income attributable to MasTec, Inc. | 100,500 | 91,900 | 192,300 | 163,600 | |
Comprehensive income (loss) | 100,500 | 91,900 | 192,300 | 163,600 | |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||||
Condensed Unaudited Consolidating Statements of Operations and Comprehensive Income (Loss) [Line Items] | |||||
Revenue | 126,400 | 102,300 | 388,900 | 372,000 | |
Costs of revenue, excluding depreciation and amortization | 108,000 | 98,000 | 360,200 | 334,200 | |
Depreciation and amortization | 3,400 | 5,200 | 12,500 | 17,300 | |
General and administrative expenses | 4,100 | 6,400 | 12,700 | 13,600 | |
Interest expense (income), net | (16,100) | (16,400) | (47,400) | (48,500) | |
Equity in earnings of unconsolidated affiliates | (7,000) | (7,700) | (19,900) | (19,100) | |
Other expense (income), net | (600) | (1,800) | (37,600) | (2,800) | |
Income before income taxes | 34,600 | 18,600 | 108,400 | 77,300 | |
(Provision for) benefit from income taxes | (4,400) | 10,600 | (5,700) | (11,700) | |
Net income (loss) before equity in income from subsidiaries | 30,200 | 29,200 | 102,700 | 65,600 | |
Equity in income (losses) from subsidiaries, net of tax | 0 | 0 | 0 | 0 | |
Net income | 30,200 | 29,200 | 102,700 | 65,600 | |
Net income (loss) attributable to non-controlling interests | 1,500 | (100) | 2,000 | (300) | |
Net income attributable to MasTec, Inc. | 28,700 | 29,300 | 100,700 | 65,900 | |
Comprehensive income (loss) | 22,700 | 33,600 | 81,100 | 78,300 | |
Eliminations [Member] | |||||
Condensed Unaudited Consolidating Statements of Operations and Comprehensive Income (Loss) [Line Items] | |||||
Revenue | (26,600) | (19,600) | (78,900) | (97,100) | |
Costs of revenue, excluding depreciation and amortization | (26,600) | (19,600) | (78,900) | (97,100) | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
General and administrative expenses | 0 | 0 | 0 | 0 | |
Interest expense (income), net | 0 | 0 | 0 | 0 | |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | |
Other expense (income), net | 0 | 0 | 0 | 0 | |
Income before income taxes | 0 | 0 | 0 | 0 | |
(Provision for) benefit from income taxes | 0 | 0 | 0 | 0 | |
Net income (loss) before equity in income from subsidiaries | 0 | 0 | 0 | 0 | |
Equity in income (losses) from subsidiaries, net of tax | (129,200) | (121,200) | (293,000) | (229,400) | |
Net income | (129,200) | (121,200) | (293,000) | (229,400) | |
Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net income attributable to MasTec, Inc. | (129,200) | (121,200) | (293,000) | (229,400) | |
Comprehensive income (loss) | $ (121,700) | $ (125,500) | $ (271,400) | $ (242,200) | |
[1] | Calculated as total net income less amounts attributable to non-controlling interests. |
Supplemental Guarantor Financ_5
Supplemental Guarantor Financial Information (Condensed Consolidating Balance Sheets (Unaudited)) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||||||
Total current assets | $ 2,198,696 | $ 2,168,989 | ||||
Property and equipment, net | 862,923 | 747,808 | ||||
Operating lease assets | 233,423 | 0 | ||||
Goodwill and other intangible assets, net | 1,325,800 | 1,269,700 | ||||
Investments in and advances to consolidated affiliates, net | 0 | 0 | ||||
Other long-term assets | 237,798 | 253,436 | ||||
Total assets | 4,858,652 | 4,439,953 | ||||
Liabilities and equity | ||||||
Total current liabilities | 1,334,506 | 1,283,611 | ||||
Long-term debt, including finance leases | 1,221,127 | 1,324,223 | ||||
Long-term operating lease liabilities | 159,283 | 0 | ||||
Other long-term liabilities | 464,400 | 440,100 | ||||
Total liabilities | 3,179,348 | 3,047,929 | ||||
Total equity | 1,679,304 | $ 1,551,338 | 1,392,024 | $ 1,489,820 | $ 1,430,398 | $ 1,433,353 |
Total liabilities and equity | 4,858,652 | 4,439,953 | ||||
Reportable Legal Entities [Member] | MasTec, Inc. [Member] | ||||||
Assets | ||||||
Total current assets | 0 | 0 | ||||
Property and equipment, net | 0 | 0 | ||||
Operating lease assets | 0 | |||||
Goodwill and other intangible assets, net | 0 | 0 | ||||
Investments in and advances to consolidated affiliates, net | 1,656,200 | 1,373,100 | ||||
Other long-term assets | 18,400 | 16,800 | ||||
Total assets | 1,674,600 | 1,389,900 | ||||
Liabilities and equity | ||||||
Total current liabilities | 0 | 0 | ||||
Long-term debt, including finance leases | 0 | 0 | ||||
Long-term operating lease liabilities | 0 | |||||
Other long-term liabilities | 0 | 0 | ||||
Total liabilities | 0 | 0 | ||||
Total equity | 1,674,600 | 1,389,900 | ||||
Total liabilities and equity | 1,674,600 | 1,389,900 | ||||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||||
Assets | ||||||
Total current assets | 2,036,800 | 1,993,000 | ||||
Property and equipment, net | 821,700 | 699,200 | ||||
Operating lease assets | 216,900 | |||||
Goodwill and other intangible assets, net | 1,244,500 | 1,188,000 | ||||
Investments in and advances to consolidated affiliates, net | 1,118,900 | 1,138,400 | ||||
Other long-term assets | 39,200 | 42,000 | ||||
Total assets | 5,478,000 | 5,060,600 | ||||
Liabilities and equity | ||||||
Total current liabilities | 1,319,200 | 1,185,900 | ||||
Long-term debt, including finance leases | 1,217,600 | 1,319,400 | ||||
Long-term operating lease liabilities | 146,800 | |||||
Other long-term liabilities | 454,600 | 429,200 | ||||
Total liabilities | 3,138,200 | 2,934,500 | ||||
Total equity | 2,339,800 | 2,126,100 | ||||
Total liabilities and equity | 5,478,000 | 5,060,600 | ||||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||||
Assets | ||||||
Total current assets | 266,500 | 248,500 | ||||
Property and equipment, net | 41,200 | 48,600 | ||||
Operating lease assets | 16,500 | |||||
Goodwill and other intangible assets, net | 81,300 | 81,700 | ||||
Investments in and advances to consolidated affiliates, net | 843,000 | 816,900 | ||||
Other long-term assets | 180,200 | 194,600 | ||||
Total assets | 1,428,700 | 1,390,300 | ||||
Liabilities and equity | ||||||
Total current liabilities | 119,900 | 170,200 | ||||
Long-term debt, including finance leases | 3,500 | 4,900 | ||||
Long-term operating lease liabilities | 12,500 | |||||
Other long-term liabilities | 9,800 | 10,800 | ||||
Total liabilities | 145,700 | 185,900 | ||||
Total equity | 1,283,000 | 1,204,400 | ||||
Total liabilities and equity | 1,428,700 | 1,390,300 | ||||
Eliminations [Member] | ||||||
Assets | ||||||
Total current assets | (104,600) | (72,500) | ||||
Property and equipment, net | 0 | 0 | ||||
Operating lease assets | 0 | |||||
Goodwill and other intangible assets, net | 0 | 0 | ||||
Investments in and advances to consolidated affiliates, net | (3,618,100) | (3,328,400) | ||||
Other long-term assets | 0 | 0 | ||||
Total assets | (3,722,700) | (3,400,900) | ||||
Liabilities and equity | ||||||
Total current liabilities | (104,600) | (72,500) | ||||
Long-term debt, including finance leases | 0 | 0 | ||||
Long-term operating lease liabilities | 0 | |||||
Other long-term liabilities | 0 | 0 | ||||
Total liabilities | (104,600) | (72,500) | ||||
Total equity | (3,618,100) | (3,328,400) | ||||
Total liabilities and equity | $ (3,722,700) | $ (3,400,900) |
Supplemental Guarantor Financ_6
Supplemental Guarantor Financial Information (Condensed Consolidating Statements of Cash Flows (Unaudited)) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Unaudited Consolidating Statements of Cash Flows [Line Items] | ||
Net cash provided by (used in) operating activities | $ 441,394 | $ 26,770 |
Cash flows from investing activities: | ||
Cash paid for acquisitions, net of cash acquired | (94,647) | (6,684) |
Capital expenditures | (85,095) | (134,214) |
Proceeds from sale of property and equipment | 27,102 | 29,676 |
Payments for other investments | (5,589) | (36,330) |
Proceeds from other investments | 14,705 | 5,415 |
Net cash used in investing activities | (143,524) | (142,137) |
Cash flows from financing activities: | ||
Proceeds from credit facilities | 2,185,714 | 2,422,556 |
Repayments of credit facilities | (2,371,965) | (1,997,392) |
Repayments of other borrowings, net | (333) | (15,830) |
Payments of finance lease obligations | (59,045) | (54,560) |
Payments of acquisition-related contingent consideration | (29,267) | (15,929) |
Proceeds from (distributions to) non-controlling interests | 584 | (559) |
Repurchases of common stock | (5,652) | (198,448) |
Proceeds from stock-based awards, net | 3,380 | 3,086 |
Other financing activities, net | (5,459) | 0 |
Net financing activities and advances from (to) consolidated affiliates | 0 | 0 |
Net cash (used in) provided by financing activities | (282,043) | 142,924 |
Effect of currency translation on cash | (154) | 601 |
Net increase in cash and cash equivalents | 15,673 | 28,158 |
Cash and cash equivalents - beginning of period | 27,422 | 40,326 |
Cash and cash equivalents - end of period | 43,095 | 68,484 |
Reportable Legal Entities [Member] | MasTec, Inc. [Member] | ||
Condensed Unaudited Consolidating Statements of Cash Flows [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Cash paid for acquisitions, net of cash acquired | 0 | 0 |
Capital expenditures | 0 | 0 |
Proceeds from sale of property and equipment | 0 | 0 |
Payments for other investments | 0 | 0 |
Proceeds from other investments | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from credit facilities | 0 | 0 |
Repayments of credit facilities | 0 | 0 |
Repayments of other borrowings, net | 0 | 0 |
Payments of finance lease obligations | 0 | 0 |
Payments of acquisition-related contingent consideration | 0 | 0 |
Proceeds from (distributions to) non-controlling interests | 0 | 0 |
Repurchases of common stock | (5,700) | (198,400) |
Proceeds from stock-based awards, net | 3,400 | 3,100 |
Other financing activities, net | 0 | |
Net financing activities and advances from (to) consolidated affiliates | 2,300 | 195,300 |
Net cash (used in) provided by financing activities | 0 | 0 |
Effect of currency translation on cash | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents - beginning of period | 0 | 0 |
Cash and cash equivalents - end of period | 0 | 0 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||
Condensed Unaudited Consolidating Statements of Cash Flows [Line Items] | ||
Net cash provided by (used in) operating activities | 416,500 | (105,300) |
Cash flows from investing activities: | ||
Cash paid for acquisitions, net of cash acquired | (94,600) | (6,700) |
Capital expenditures | (81,500) | (130,100) |
Proceeds from sale of property and equipment | 17,500 | 20,200 |
Payments for other investments | (4,300) | (11,800) |
Proceeds from other investments | 10,800 | 0 |
Net cash used in investing activities | (152,100) | (128,400) |
Cash flows from financing activities: | ||
Proceeds from credit facilities | 2,175,700 | 2,396,700 |
Repayments of credit facilities | (2,362,000) | (1,971,200) |
Repayments of other borrowings, net | (300) | (15,500) |
Payments of finance lease obligations | (57,500) | (49,800) |
Payments of acquisition-related contingent consideration | (29,300) | (15,900) |
Proceeds from (distributions to) non-controlling interests | 0 | (600) |
Repurchases of common stock | 0 | 0 |
Proceeds from stock-based awards, net | 0 | 0 |
Other financing activities, net | (5,500) | |
Net financing activities and advances from (to) consolidated affiliates | 21,400 | (71,500) |
Net cash (used in) provided by financing activities | (257,500) | 272,200 |
Effect of currency translation on cash | 0 | 0 |
Net increase in cash and cash equivalents | 6,900 | 38,500 |
Cash and cash equivalents - beginning of period | 11,900 | 10,000 |
Cash and cash equivalents - end of period | 18,800 | 48,500 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||
Condensed Unaudited Consolidating Statements of Cash Flows [Line Items] | ||
Net cash provided by (used in) operating activities | 24,900 | 132,100 |
Cash flows from investing activities: | ||
Cash paid for acquisitions, net of cash acquired | 0 | 0 |
Capital expenditures | (3,600) | (4,100) |
Proceeds from sale of property and equipment | 9,600 | 9,500 |
Payments for other investments | (1,300) | (24,500) |
Proceeds from other investments | 3,900 | 5,400 |
Net cash used in investing activities | 8,600 | (13,700) |
Cash flows from financing activities: | ||
Proceeds from credit facilities | 10,000 | 25,900 |
Repayments of credit facilities | (10,000) | (26,200) |
Repayments of other borrowings, net | 0 | (400) |
Payments of finance lease obligations | (1,500) | (4,700) |
Payments of acquisition-related contingent consideration | 0 | 0 |
Proceeds from (distributions to) non-controlling interests | 600 | 0 |
Repurchases of common stock | 0 | 0 |
Proceeds from stock-based awards, net | 0 | 0 |
Other financing activities, net | 0 | |
Net financing activities and advances from (to) consolidated affiliates | (23,700) | (123,800) |
Net cash (used in) provided by financing activities | (24,600) | (129,200) |
Effect of currency translation on cash | (200) | 600 |
Net increase in cash and cash equivalents | 8,700 | (10,200) |
Cash and cash equivalents - beginning of period | 15,600 | 30,300 |
Cash and cash equivalents - end of period | 24,300 | 20,100 |
Eliminations [Member] | ||
Condensed Unaudited Consolidating Statements of Cash Flows [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Cash paid for acquisitions, net of cash acquired | 0 | 0 |
Capital expenditures | 0 | 0 |
Proceeds from sale of property and equipment | 0 | 0 |
Payments for other investments | 0 | 0 |
Proceeds from other investments | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from credit facilities | 0 | 0 |
Repayments of credit facilities | 0 | 0 |
Repayments of other borrowings, net | 0 | 0 |
Payments of finance lease obligations | 0 | 0 |
Payments of acquisition-related contingent consideration | 0 | 0 |
Proceeds from (distributions to) non-controlling interests | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Proceeds from stock-based awards, net | 0 | 0 |
Other financing activities, net | 0 | |
Net financing activities and advances from (to) consolidated affiliates | 0 | 0 |
Net cash (used in) provided by financing activities | 0 | 0 |
Effect of currency translation on cash | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents - beginning of period | 0 | 0 |
Cash and cash equivalents - end of period | $ 0 | $ 0 |