Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-08106 | |
Entity Registrant Name | MasTec, Inc. | |
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, $0.10 Par Value | |
Trading Symbol | MTZ | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 78,860,414 | |
Entity Central Index Key | 0000015615 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,874,115 | $ 2,301,792 | $ 5,458,774 | $ 4,256,192 |
Costs of revenue, excluding depreciation and amortization | 2,484,780 | 2,028,111 | 4,844,274 | 3,761,427 |
Depreciation | 103,038 | 87,001 | 210,285 | 172,195 |
Amortization of intangible assets | 42,043 | 27,673 | 83,987 | 53,263 |
General and administrative expenses | 176,155 | 133,785 | 340,069 | 279,175 |
Interest expense, net | 59,415 | 19,387 | 112,108 | 35,428 |
Equity in earnings of unconsolidated affiliates, net | (7,496) | (6,587) | (16,648) | (13,364) |
Other income, net | (3,508) | (5,825) | (9,709) | (2,071) |
Income (loss) before income taxes | 19,688 | 18,247 | (105,592) | (29,861) |
(Provision for) benefit from income taxes | (2,934) | (1,992) | 41,800 | 11,157 |
Net income (loss) | 16,754 | 16,255 | (63,792) | (18,704) |
Net income attributable to non-controlling interests | 1,212 | 43 | 1,206 | 62 |
Net income (loss) attributable to MasTec, Inc. | $ 15,542 | $ 16,212 | $ (64,998) | $ (18,766) |
Earnings (loss) per share (Note 2): | ||||
Basic earnings (loss) per share (in dollars per share) | $ 0.20 | $ 0.22 | $ (0.84) | $ (0.25) |
Basic weighted average common shares outstanding (in shares) | 77,635 | 74,445 | 77,306 | 74,615 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.20 | $ 0.20 | $ (0.84) | $ (0.27) |
Diluted weighted average common shares outstanding (in shares) | 78,372 | 75,537 | 77,306 | 74,647 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 16,754 | $ 16,255 | $ (63,792) | $ (18,704) |
Other comprehensive income: | ||||
Foreign currency translation gains (losses), net of tax | 1,007 | (1,743) | 1,679 | (830) |
Unrealized gains on investment activity, net of tax | 4,576 | 7,843 | 399 | 21,597 |
Comprehensive income (loss) | 22,337 | 22,355 | (61,714) | 2,063 |
Comprehensive income attributable to non-controlling interests | 1,212 | 43 | 1,206 | 62 |
Comprehensive income (loss) attributable to MasTec, Inc. | $ 21,125 | $ 22,312 | $ (62,920) | $ 2,001 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 119,905 | $ 370,592 |
Accounts receivable, net of allowance | 1,485,199 | 1,399,732 |
Contract assets | 1,850,748 | 1,729,886 |
Inventories, net | 152,845 | 117,969 |
Prepaid expenses | 101,103 | 122,308 |
Other current assets | 119,204 | 118,640 |
Total current assets | 3,829,004 | 3,859,127 |
Property and equipment, net | 1,753,667 | 1,754,101 |
Operating lease right-of-use assets | 347,060 | 279,534 |
Goodwill, net | 2,079,522 | 2,045,041 |
Other intangible assets, net | 862,775 | 946,299 |
Other long-term assets | 415,792 | 409,157 |
Total assets | 9,287,820 | 9,293,259 |
Current liabilities: | ||
Current portion of long-term debt, including finance leases | 169,253 | 171,916 |
Current portion of operating lease liabilities | 117,633 | 96,516 |
Accounts payable | 930,270 | 1,109,867 |
Accrued salaries and wages | 179,847 | 181,888 |
Other accrued expenses | 351,274 | 365,971 |
Contract liabilities | 487,198 | 406,232 |
Other current liabilities | 205,360 | 163,647 |
Total current liabilities | 2,440,835 | 2,496,037 |
Long-term debt, including finance leases | 3,154,576 | 3,052,193 |
Long-term operating lease liabilities | 235,977 | 194,050 |
Deferred income taxes | 520,820 | 571,401 |
Other long-term liabilities | 247,192 | 238,391 |
Total liabilities | 6,599,400 | 6,552,072 |
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 - 98,674,249 and 98,615,105 (including 1,367,227 and 2,047,130 of unvested stock awards) as of June 30, 2023 and December 31, 2022, respectively | 9,867 | 9,862 |
Capital surplus | 1,247,231 | 1,246,590 |
Retained earnings | 2,130,744 | 2,195,742 |
Accumulated other comprehensive loss | (48,877) | (50,955) |
Treasury stock, at cost: 19,813,055 and 19,933,055 shares as of June 30, 2023 and December 31, 2022, respectively | (659,913) | (663,910) |
Total MasTec, Inc. shareholders’ equity | 2,679,052 | 2,737,329 |
Non-controlling interests | 9,368 | 3,858 |
Total equity | 2,688,420 | 2,741,187 |
Total liabilities and equity | $ 9,287,820 | $ 9,293,259 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 145,000,000 | 145,000,000 |
Common stock, shares issued (in shares) | 98,674,249 | 98,615,105 |
Treasury stock, shares (in shares) | 19,813,055 | 19,933,055 |
Common Stock | ||
Common stock, shares issued (in shares) | 98,674,249 | 98,615,105 |
Restricted Stock Awards | Common Stock | ||
Unvested stock awards (in shares) | 1,367,227 | 2,047,130 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Total MasTec, Inc. Shareholders’ Equity | Common Stock | Treasury Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Non-Controlling Interests |
Beginning balance, common shares outstanding (in shares) at Dec. 31, 2021 | 95,371,211 | |||||||
Beginning balance at Dec. 31, 2021 | $ 2,543,861 | $ 2,539,809 | $ 9,537 | $ (586,955) | $ 1,033,615 | $ 2,162,388 | $ (78,776) | $ 4,052 |
Beginning balance, treasury shares (in shares) at Dec. 31, 2021 | (18,941,926) | |||||||
Ending balance, common shares outstanding (in shares) at Mar. 31, 2022 | 95,488,017 | |||||||
Ending balance at Mar. 31, 2022 | 2,512,077 | 2,508,006 | $ 9,549 | $ (600,746) | 1,035,902 | 2,127,410 | (64,109) | 4,071 |
Ending balance, treasury shares (in shares) at Mar. 31, 2022 | (19,129,904) | |||||||
Beginning balance, common shares outstanding (in shares) at Dec. 31, 2021 | 95,371,211 | |||||||
Beginning balance at Dec. 31, 2021 | 2,543,861 | 2,539,809 | $ 9,537 | $ (586,955) | 1,033,615 | 2,162,388 | (78,776) | 4,052 |
Beginning balance, treasury shares (in shares) at Dec. 31, 2021 | (18,941,926) | |||||||
Condensed Unaudited Consolidated Statements of Equity | ||||||||
Net (loss) income | (18,704) | (18,766) | (18,766) | 62 | ||||
Other comprehensive income (loss) | 20,767 | 20,767 | 20,767 | |||||
Non-cash stock-based compensation | 13,172 | 13,172 | 13,172 | |||||
Issuance of restricted shares, net (in shares) | 168,762 | |||||||
Issuance of restricted shares, net | 0 | 0 | $ 17 | (17) | ||||
Shares withheld for taxes, net of other stock issuances (in shares) | (48,568) | |||||||
Shares withheld for taxes, net of other stock issuances | (4,085) | (4,085) | $ (5) | (4,080) | ||||
Issuance of shares in connection with acquisition (in shares) | 4,112 | 133,157 | ||||||
Issuance of shares in connection with acquisition | $ 11,222 | 11,222 | $ 4,336 | 6,886 | ||||
Acquisition of treasury stock, at cost (in shares) | (1,124,000) | (1,124,286) | ||||||
Acquisition of treasury stock, at cost | $ (81,291) | (81,291) | $ (81,291) | |||||
Ending balance, common shares outstanding (in shares) at Jun. 30, 2022 | 95,491,405 | |||||||
Ending balance at Jun. 30, 2022 | 2,484,942 | 2,480,828 | $ 9,549 | $ (663,910) | 1,049,576 | 2,143,622 | (58,009) | 4,114 |
Ending balance, treasury shares (in shares) at Jun. 30, 2022 | (19,933,055) | |||||||
Beginning balance, common shares outstanding (in shares) at Mar. 31, 2022 | 95,488,017 | |||||||
Beginning balance at Mar. 31, 2022 | 2,512,077 | 2,508,006 | $ 9,549 | $ (600,746) | 1,035,902 | 2,127,410 | (64,109) | 4,071 |
Beginning balance, treasury shares (in shares) at Mar. 31, 2022 | (19,129,904) | |||||||
Condensed Unaudited Consolidated Statements of Equity | ||||||||
Net (loss) income | 16,255 | 16,212 | 16,212 | 43 | ||||
Other comprehensive income (loss) | 6,100 | 6,100 | 6,100 | |||||
Non-cash stock-based compensation | 6,836 | 6,836 | 6,836 | |||||
Issuance of restricted shares, net (in shares) | 3,752 | |||||||
Issuance of restricted shares, net | 0 | |||||||
Shares withheld for taxes, net of other stock issuances (in shares) | (364) | |||||||
Shares withheld for taxes, net of other stock issuances | (48) | (48) | (48) | |||||
Issuance of shares in connection with acquisition (in shares) | 133,157 | |||||||
Issuance of shares in connection with acquisition | $ 11,222 | 11,222 | $ 4,336 | 6,886 | ||||
Acquisition of treasury stock, at cost (in shares) | (936,000) | (936,308) | ||||||
Acquisition of treasury stock, at cost | $ (67,500) | (67,500) | $ (67,500) | |||||
Ending balance, common shares outstanding (in shares) at Jun. 30, 2022 | 95,491,405 | |||||||
Ending balance at Jun. 30, 2022 | $ 2,484,942 | 2,480,828 | $ 9,549 | $ (663,910) | 1,049,576 | 2,143,622 | (58,009) | 4,114 |
Ending balance, treasury shares (in shares) at Jun. 30, 2022 | (19,933,055) | |||||||
Beginning balance, common shares outstanding (in shares) at Dec. 31, 2022 | 98,615,105 | 98,615,105 | ||||||
Beginning balance at Dec. 31, 2022 | $ 2,741,187 | 2,737,329 | $ 9,862 | $ (663,910) | 1,246,590 | 2,195,742 | (50,955) | 3,858 |
Beginning balance, treasury shares (in shares) at Dec. 31, 2022 | (19,933,055) | (19,933,055) | ||||||
Condensed Unaudited Consolidated Statements of Equity | ||||||||
Net (loss) income | $ (63,792) | (64,998) | (64,998) | 1,206 | ||||
Other comprehensive income (loss) | 2,078 | 2,078 | 2,078 | |||||
Non-cash stock-based compensation | 17,090 | 17,090 | 17,090 | |||||
Issuance of restricted shares, net (in shares) | 172,589 | |||||||
Issuance of restricted shares, net | 0 | 0 | $ 17 | (17) | ||||
Shares withheld for taxes, net of other stock issuances (in shares) | (117,557) | |||||||
Shares withheld for taxes, net of other stock issuances | (5,374) | (5,374) | $ (12) | (5,362) | ||||
Issuance of shares in connection with acquisition (in shares) | 1,877 | |||||||
Issuance of shares in connection with acquisition | 403 | 403 | 403 | |||||
Purchase of non-controlling interests (in shares) | 120,000 | |||||||
Purchase of non-controlling interests | (10,000) | (7,476) | $ 3,997 | (11,473) | (2,524) | |||
Acquisition-related assumption of non-controlling interest | $ 6,828 | 6,828 | ||||||
Acquisition of treasury stock, at cost (in shares) | 0 | |||||||
Ending balance, common shares outstanding (in shares) at Jun. 30, 2023 | 98,674,249 | 98,674,249 | ||||||
Ending balance at Jun. 30, 2023 | $ 2,688,420 | 2,679,052 | $ 9,867 | $ (659,913) | 1,247,231 | 2,130,744 | (48,877) | 9,368 |
Ending balance, treasury shares (in shares) at Jun. 30, 2023 | (19,813,055) | (19,813,055) | ||||||
Beginning balance, common shares outstanding (in shares) at Mar. 31, 2023 | 98,674,997 | |||||||
Beginning balance at Mar. 31, 2023 | $ 2,647,632 | 2,646,304 | $ 9,867 | $ (659,913) | 1,235,608 | 2,115,202 | (54,460) | 1,328 |
Beginning balance, treasury shares (in shares) at Mar. 31, 2023 | (19,813,055) | |||||||
Condensed Unaudited Consolidated Statements of Equity | ||||||||
Net (loss) income | 16,754 | 15,542 | 15,542 | 1,212 | ||||
Other comprehensive income (loss) | 5,583 | 5,583 | 5,583 | |||||
Non-cash stock-based compensation | 8,575 | 8,575 | 8,575 | |||||
Issuance of restricted shares, net (in shares) | (2,244) | |||||||
Issuance of restricted shares, net | 0 | 0 | ||||||
Shares withheld for taxes, net of other stock issuances (in shares) | (381) | |||||||
Shares withheld for taxes, net of other stock issuances | 2,851 | 2,851 | 2,851 | |||||
Issuance of shares in connection with acquisition | 197 | 197 | 197 | |||||
Acquisition-related assumption of non-controlling interest | $ 6,828 | 6,828 | ||||||
Acquisition of treasury stock, at cost (in shares) | 0 | |||||||
Ending balance, common shares outstanding (in shares) at Jun. 30, 2023 | 98,674,249 | 98,674,249 | ||||||
Ending balance at Jun. 30, 2023 | $ 2,688,420 | $ 2,679,052 | $ 9,867 | $ (659,913) | $ 1,247,231 | $ 2,130,744 | $ (48,877) | $ 9,368 |
Ending balance, treasury shares (in shares) at Jun. 30, 2023 | (19,813,055) | (19,813,055) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (63,792) | $ (18,704) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation | 210,285 | 172,195 |
Amortization of intangible assets | 83,987 | 53,263 |
Non-cash stock-based compensation expense | 17,090 | 13,172 |
(Benefit from) provision for deferred income taxes | (42,548) | 6,190 |
Equity in earnings of unconsolidated affiliates, net | (16,648) | (13,364) |
Gains on sales of assets, net | (13,598) | (8,662) |
Non-cash interest expense, net | 2,864 | 1,709 |
Other non-cash items, net | 389 | 301 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | (61,606) | 18,575 |
Contract assets | (97,689) | (289,018) |
Inventories | 3,693 | (19,844) |
Other assets, current and long-term portion | 38,324 | 521 |
Accounts payable and accrued expenses | (204,453) | 99,796 |
Contract liabilities | 65,404 | (11,915) |
Other liabilities, current and long-term portion | (19,612) | (2,674) |
Net cash (used in) provided by operating activities | (97,910) | 1,541 |
Cash flows from investing activities: | ||
Cash paid for acquisitions, net of cash acquired | (63,880) | (44,908) |
Capital expenditures | (119,067) | (189,870) |
Proceeds from sales of property and equipment | 42,570 | 17,722 |
Payments for other investments | (1,627) | (2,965) |
Proceeds from other investments | 425 | 0 |
Other investing activities, net | 119 | 0 |
Net cash used in investing activities | (141,460) | (220,021) |
Cash flows from financing activities: | ||
Proceeds from credit facilities | 1,687,400 | 1,954,650 |
Repayments of credit facilities | (1,580,775) | (1,741,083) |
Payments of finance lease obligations | (85,223) | (83,375) |
Repurchases of common stock | 0 | (81,291) |
Payments of acquisition-related contingent consideration | (8,955) | (26,779) |
Payments for acquisition-related contingent assets | 0 | (17,636) |
Payments to non-controlling interests, including acquisition of interests and distributions | (11,660) | 0 |
Payments for stock-based awards | (10,256) | (4,024) |
Other financing activities, net | (2,686) | (3,446) |
Net cash used in financing activities | (12,155) | (2,984) |
Effect of currency translation on cash | 838 | (343) |
Net decrease in cash and cash equivalents | (250,687) | (221,807) |
Cash and cash equivalents - beginning of period | 370,592 | 360,736 |
Cash and cash equivalents - end of period | 119,905 | 138,929 |
Supplemental cash flow information: | ||
Interest paid | 111,969 | 34,507 |
Income taxes paid, net of refunds | 13,947 | 1,304 |
Supplemental disclosure of non-cash information: | ||
Additions to property and equipment from finance leases | $ 70,464 | $ 126,669 |
Business, Basis of Presentation
Business, Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Business, Basis of Presentation and Significant Accounting Policies | 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: power delivery services, including transmission, distribution, environmental planning and compliance; wireless, wireline/fiber and customer fulfillment activities; power generation, primarily from clean energy and renewable sources; pipeline distribution infrastructure, including natural gas, carbon capture sequestration, water and pipeline integrity services; heavy civil; industrial infrastructure; and environmental remediation services. MasTec’s customers are primarily in these industries. MasTec reports its results under five reportable segments: (1) Communications; (2) Clean Energy and Infrastructure; (3) Oil and Gas; (4) Power Delivery 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, 2022 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, 2022 contained in the Company’s 2022 Annual Report on Form 10-K (the “2022 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 appropriate, prior year amounts are reclassified to conform with 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, except for mandatorily redeemable non-controlling interests, which are recorded within other liabilities. Net income or loss attributable to non-controlling interests is reported as a separate line item below net income or loss. Investments in entities for which the Company does not have a controlling financial interest, but over which it has the ability to exert significant influence, are accounted for under 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 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. For foreign operations for which the local currency is not the functional currency, the operation’s non-monetary assets are remeasured into U.S. dollars at historical exchange rates. All other accounts are remeasured at current exchange rates. Gains or losses from remeasurement are included in other income or expense, net. 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 that management believes to be reasonable under the circumstances, including the potential future effects of macroeconomic trends and events, such as inflation and interest rate levels; uncertainty from potential market volatility; supply chain disruptions; climate-related matters; other market, industry and regulatory factors, including permitting issues; global events, such as military conflicts; and public health matters. These estimates form the basis for making judgments about the Company’s operating results and the carrying values of assets and liabilities that are not readily apparent from other sources. 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 these estimates. 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 acquisition-related assets, such as goodwill and intangible assets, equity investments, long-lived and other assets; acquisition-related liabilities, including contingent consideration, other liabilities and debt obligations; allowances for credit losses; asset lives used in computing depreciation and amortization; fair values of financial instruments; self-insurance liabilities; certain other accruals and allowances; income taxes; and the estimated effects of litigation and other contingencies. General Economic, Market and Regulatory Conditions The Company has experienced, and may continue to experience, direct and indirect negative effects on its business and operations from negative economic, market, and regulatory conditions, including permitting issues, market interest rates, inflationary effects on fuel prices, labor and materials costs, supply chain disruptions, and uncertainty from potential market volatility that could negatively affect demand for future projects and/or delay existing project timing or cause increased project costs. The extent to which general economic, market and regulatory conditions could affect the Company’s business, operations and financial results is uncertain as it will depend upon numerous evolving factors that management may not be able to accurately predict, and, therefore, any future impacts on the Company’s business, financial condition and/or results of operations cannot be quantified or predicted with specificity. Significant Accounting Policies Revenue Recognition The Company recognizes revenue from contracts with customers when, or as, control of promised services and goods is transferred to customers. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for the services and goods transferred. The Company primarily recognizes revenue 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 service and other service agreements, which generally 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 43% and 54% of consolidated revenue for the three month periods ended June 30, 2023 and 2022, respectively, and totaled 45% and 56% for the six month periods ended June 30, 2023 and 2022, respectively. For certain master service and other service agreements, revenue is recognized at a point in time, primarily for install-to-the-home and certain other wireless services in the Company’s Communications segment, and to a lesser extent, certain revenue in the Company’s Clean Energy and Infrastructure and Oil and Gas segments. Point in time revenue is recognized when the work order has been fulfilled, which, for the majority of the Company’s point in time revenue, is the same day it is initiated. Point in time revenue accounted for approximately 3% of consolidated revenue for both the three and six month periods ended June 30, 2023, and totaled approximately 4% for both the three and six month periods ended June 30, 2022. The total contract transaction price and cost estimation processes used 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, operational 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 revisions 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 the six month periods ended June 30, 2023 and 2022, 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, 2022 and 2021. Changes in recognized revenue, net, as a result of changes in total contract transaction price estimates, including from variable consideration, and/or changes in cost estimates, related to performance obligations satisfied or partially satisfied in prior periods, for the three month period ended June 30, 2023 positively affected revenue by approximately 1.5%, and for the three month period ended June 30, 2022, there was no net effect. For the six month periods ended June 30, 2023 and 2022, such net changes positively affected revenue by approximately 0.6% and 0.2%, respectively. Performance Obligations. A performance obligation is a contractual promise to transfer a distinct good or service to a customer. 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 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 June 30, 2023, the amount of the Company’s remaining performance obligations was $8.0 billion. Based on current expectations, the Company anticipates it will recognize approximately $4.6 billion of its remaining performance obligations as revenue during 2023, with the majority of the remaining balance expected to be recognized in 2024. 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 specific discussions, correspondence or preliminary negotiations and past practices with the customer, engineering studies and legal advice 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 June 30, 2023 and December 31, 2022, the Company included in its contract transaction prices approximately $317 million and $271 million, respectively, of change orders and/or claims 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, when earned, are included within contract assets or accounts receivable, net of allowance, as appropriate. As of both June 30, 2023 and December 31, 2022, these change orders and/or claims primarily related to certain projects in the Company’s Clean Energy and Infrastructure and Power Delivery segments and include amounts related to recently acquired businesses. 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 agreement by customers could be higher or lower than such estimated amounts. Recent Accounting Pronouncements The discussion below describes the effects of recent accounting pronouncements, as updated from the discussion in the Company’s 2022 Form 10-K. Accounting Pronouncements Adopted in 2023 In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”) to improve consistency for revenue recognition in the post-acquisition period for acquired contracts as compared to contracts entered into subsequent to acquisition. ASU 2021-08 requires an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers, rather than at fair value. ASU 2021-08, which the Company adopted in the first quarter of 2023, did not have a material effect on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements (“ASU 2023-01”) to improve the guidance for applying Topic 842, Leases, to arrangements between entities under common control. ASU 2023-01 improves current GAAP by clarifying the accounting for leasehold improvements associated with common control leases, thereby reducing diversity in practice. The provisions of this ASU that apply to public companies include a requirement for entities to amortize leasehold improvements associated with common control leases over the useful life of the common control group. ASU 2023-01 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the effects of this ASU, however, this ASU is not expected to have a material effect on the Company’s consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings or loss per share is computed by dividing net income or loss 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 primarily 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, if 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 June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net income (loss) attributable to MasTec: Net income (loss) - basic (a) $ 15,542 $ 16,212 $ (64,998) $ (18,766) Fair value gain related to resolved contingent payments (b) $ — $ 1,025 $ — $ 1,025 Net income (loss) - diluted (a) $ 15,542 $ 15,187 $ (64,998) $ (19,791) Weighted average shares outstanding: Weighted average shares outstanding - basic (c) 77,635 74,445 77,306 74,615 Dilutive common stock equivalents (d)(e) 737 1,092 — 32 Weighted average shares outstanding - diluted 78,372 75,537 77,306 74,647 (a) Basic net income or loss is calculated as total net income or loss, less amounts attributable to non-controlling interests. Diluted net income or loss is calculated as total net income or loss, less amounts attributable to non-controlling interests, adjusted for the fair value gain or loss, if any, related to additional contingent payments to the former owners of an acquired business for which the contingency has been resolved as of the respective period. See Note 3 - Acquisitions, Goodwill and Other Intangible Assets, Net, for additional information. (b) For the three and six month periods ended June 30, 2022, represents the fair value gain related to additional contingent payments for which the contingency had been resolved as of June 30, 2022. See Note 3 – Acquisitions, Goodwill and Other Intangible Assets, Net for additional information. (c) For the three month periods ended June 30, 2023 and 2022, basic shares include approximately 88,000 and 132,000 weighted average shares, respectively, related to additional contingent payments, and for the six month periods ended June 30, 2023 and 2022, basic shares include approximately 88,000 and 101,000 of such weighted average shares, respectively. (d) For the three month periods ended June 30, 2023, and 2022, weighted average anti-dilutive common stock equivalents totaled approximately 2,000 and 178,000 shares, respectively, and for the six month periods ended June 30, 2023 and 2022, such shares totaled approximately 1,147,000 and 1,273,000, respectively. (e) For the three and six month periods ended June 30, 2023, weighted average common stock equivalents related to additional contingent payments to the former owners of an acquired business, which shares were anti-dilutive, were de minimis, and for the three and six month periods ended June 30, 2022, weighted average common stock equivalents related to such additional contingent payments, which shares were dilutive, totaled approximately 1,000 and 32,000, respectively. Share repurchases . There were no share repurchases under the Company’s share repurchase programs in either of the three or six month periods ended June 30, 2023. For the three and six month periods ended June 30, 2022, the Company repurchased approximately 936,000 and 1,124,000 shares of its common stock, respectively, the effect of which on the Company’s weighted average shares outstanding for the respective periods was a reduction of approximately 554,000 and 330,000 shares. See Note 11 - Equity for details of the Company’s share repurchase transactions. Shares issued for acquisitions . In the fourth quarter of 2022, the Company iss ued approximately 2,758,000 sha res of its common stock in conjunction with the October 2022 acquisition of Infrastructure and Energy Alternatives, Inc. (“IEA”). In the second quarter of 2022, the Company issued 133,000 shares in connection with the December 2021 acquisition of Henkels & McCoy Holdings, Inc., formerly known as Henkels & McCoy Group, Inc. (“HMG”). See Note 3 - Acquisitions, Goodwill and Other Intangible Assets, Net for additional information. |
Acquisitions, Goodwill, and Oth
Acquisitions, Goodwill, and Other Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquisitions, Goodwill, and Other Intangible Assets, Net | Acquisitions, Goodwill and Other Intangible Assets, Net The following table provides a reconciliation of changes in goodwill by reportable segment for the six month period ended June 30, 2023 (in millions): Communications Clean Energy and Infrastructure Oil and Gas Power Delivery Total Goodwill Goodwill, gross, as of December 31, 2022 $ 606.1 $ 703.3 $ 582.2 $ 270.1 $ 2,161.7 Accumulated impairment loss (a) — — (116.7) — (116.7) Goodwill, net, as of December 31, 2022 $ 606.1 $ 703.3 $ 465.5 $ 270.1 $ 2,045.0 Additions from new business combinations 9.5 — — — 9.5 Measurement period adjustments (b) (0.6) 23.8 0.9 0.6 24.7 Currency translation adjustments — — 0.3 — 0.3 Goodwill, net as of June 30, 2023 $ 615.0 $ 727.1 $ 466.7 $ 270.7 $ 2,079.5 (a) Accumulated impairment losses include the effects of currency translation gains and/or losses. (b) Measurement period adjustments represent adjustments, net, to preliminary estimates of fair value within the measurement period of up to one year from the date of acquisition. Measurement period adjustments, net, for the six month period ended June 30, 2023 were primarily the result of updated valuations of certain fixed assets and updated estimates of certain assets and liabilities, including contract assets and liabilities. As a result of certain of these adjustments, depreciation expense decreased by approximately $6 million, revenue increased by approximately $13 million and costs of revenue, excluding depreciation and amortization decreased by approximately $3 million. The following table provides a reconciliation of changes in other intangible assets, net, for the period indicated (in millions): Other Intangible Assets, Net Customer Relationships and Backlog Trade Names (a) Other (b) Total Other intangible assets, gross, as of December 31, 2022 $ 1,089.4 $ 228.9 $ 86.6 $ 1,404.9 Accumulated amortization (388.8) (28.9) (40.9) (458.6) Other intangible assets, net, as of December 31, 2022 $ 700.6 $ 200.0 $ 45.7 $ 946.3 Currency translation adjustments — — 0.5 0.5 Amortization expense (69.7) (10.1) (4.2) (84.0) Other intangible assets, net, as of June 30, 2023 $ 630.9 $ 189.9 $ 42.0 $ 862.8 (a) Includes approximately $34.5 million of non-amortizing trade names as of both June 30, 2023 and December 31, 2022. (b) Consists principally of pre-qualifications and non-compete agreements. Quarterly Assessment for Indicators of Impairment . During the second quarter of 2023, the Company performed a quarterly review for indicators of impairment, which considered its results for the six month period ended June 30, 2023, together with its expectations of future results, including consideration of the potential effects of shifts in timing for projects and macroeconomic factors. In conjunction with this quarterly review, management performed a quantitative assessment of the goodwill associated with one reporting unit within the Clean Energy and Infrastructure segment. Based on the results of this assessment, management determined that the estimated fair value of this reporting unit substantially exceeded its carrying value as of June 30, 2023. Significant changes in the assumptions or estimates used in management’s assessment, such as a reduction in profitability and/or cash flows, changes in market or other conditions, including decreases in project activity levels and/or the effects of elevated levels of inflation or market interest rates, could result in non-cash impairment charges to goodwill and indefinite-lived intangible assets in the future. Recent Acquisitions The Company seeks to grow and diversify its business both organically and through acquisitions and/or strategic arrangements in order to deepen its market presence and customer base, broaden its geographic reach and expand its service offerings. In 2021, the Company initiated a significant transformation of its end-market business operations to focus on the nation’s transition to low-carbon energy sources and position the Company for expected future opportunities. This transformation has included significant business combination activity, including expansion of the Company’s scale and capacity in renewable energy, power delivery, heavy civil and telecommunications services, which activity has resulted in significant acquisition and integration costs, both in the Company’s existing and recently acquired operations. Acquisitions are funded with cash on hand, borrowings under the Company’s senior unsecured credit facility and other debt financing and, for certain recent acquisitions, with shares of the Company’s common stock, and are generally subject to customary purchase price adjustments. 2023 Acquisitions. For the six month period ended June 30, 2023, MasTec acquired certain of the assets of a telecommunications company specializing in wireless services that is included within the Company’s Communications segment, which acquisition was effective in January and has been accounted for as a business combination under ASC 805, “ Business Combinations ” (“ASC 805”). Determination of the estimated fair values of the net assets acquired and consideration transferred for this acquisition was preliminary as of June 30, 2023; as a result, further adjustments to these estimates may occur. Additionally, MasTec acquired 68% and 42% of the equity interests of two equipment companies, both of which are accounted for as asset acquisitions under ASC 805, and were effective in May and included within the Company’s Oil and Gas segment. Based on an evaluation of the respective entities’ operating agreements, under which the Company has voting control with respect to the entities’ operating management, the Company determined that it has control over these entities, and, therefore, has consolidated these entities within the Company’s results of operations, with the other parties’ interests accounted for as non-controlling interests. The aggregate purchase price of the Company’s 2023 acquisitions was composed of approximately $62 million in cash, net of cash acquired. 2022 Acquisitions. During 2022, MasTec completed five acquisitions, which included all of the equity interests of the following: (i) within the Company’s Clean Energy and Infrastructure segment: IEA, a leading utility-scale infrastructure solutions provider in North America, with expertise in renewable energy and heavy civil projects, as well as rail and environmental remediation services, which acquisition was effective in October; and a company specializing in the production of concrete and aggregate products, which acquisition was effective in August; (ii) within the Company’s Oil and Gas segment: an infrastructure construction company focusing on water, sewer and utility projects and with expertise in excavation and site work, which acquisition was effective in January; (iii) within the Company’s Communications segment: a telecommunications company specializing in wireline services, which acquisition was effective as of the end of May; and (iv) within the Company’s Power Delivery segment: a company specializing in the construction of overhead high voltage transmission lines, which acquisition was effective in July. Determination of the estimated fair values of the net assets acquired and the estimated earn-out liabilities and consideration transferred for three of the Company’s 2022 acquisitions was preliminary as of June 30, 2023 while the Company finalizes certain working capital and other valuation and contingency-related estimates; as a result, further adjustments to such estimates may occur. The following table summarizes, as of June 30, 2023, the estimated fair values of the consideration paid and net assets acquired, as adjusted, for the Company’s 2022 acquisitions (in millions): Acquisition consideration: IEA All other Total Cash, net of cash acquired $ 564.5 $ 48.4 $ 612.9 Shares transferred 173.7 — 173.7 Estimated fair value of warrants 10.3 — 10.3 Estimated fair value of contingent consideration — 2.8 2.8 Total consideration $ 748.5 $ 51.2 $ 799.7 Identifiable assets acquired and liabilities assumed: Accounts receivable and contract assets $ 585.7 $ 6.1 $ 591.8 Current assets 36.1 1.5 37.6 Property and equipment 213.0 30.1 243.1 Long-term assets, primarily operating lease right-of-use assets 40.6 0.3 40.9 Amortizing intangible assets 362.2 5.9 368.1 Accounts payable (136.5) (4.6) (141.1) Current liabilities, including current portion of operating lease liabilities (444.6) (2.9) (447.5) Long-term debt, including finance lease obligations (330.8) (0.2) (331.0) Long-term liabilities, primarily operating lease liabilities and deferred income taxes (131.4) (0.2) (131.6) Total identifiable net assets $ 194.3 $ 36.0 $ 230.3 Goodwill 554.2 15.2 569.4 Total net assets acquired, including goodwill $ 748.5 $ 51.2 $ 799.7 Amortizing intangible assets related to the IEA acquisition are primarily composed of customer relationships, and to a lesser extent, trade names and backlog. Customer relationship and trade name intangible assets for IEA, in the aggregate, totaled approximately $321 million, which each had a weighted average life of approximately 14 years based on IEA’s operational history and established relationships with, and the nature of, its customers, which are primarily in the renewable energy and specialty civil industries. Backlog intangible assets for IEA totaled approximately $42 million with a weighted average life of approximately 1 year based on estimated cash flows expected to be derived from future work on acquired contracts with customers. The weighted average life of amortizing intangible assets in the aggregate for the IEA acquisition was 13 years. Amortizing intangible assets related to “All other” acquisitions are primarily composed of customer relationships with an aggregate weighted average life of 9 years. Amortizing intangible assets are amortized in a manner consistent with the pattern in which the related benefits are expected to be consumed. The goodwill balances for each of the respective acquisitions represent the estimated values of each acquired company’s geographic presence in key markets, assembled workforce, management team’s industry-specific project management expertise and synergies expected to be achieved from the combined operations of each of the acquired companies and MasTec. Approximately $38 million of the goodwill balance related to the 2022 acquisitions is expected to be tax deductible as of June 30, 2023. The shares of MasTec common stock included in consideration transferred for IEA in the table above consist of approximately 2.7 million shares, valued at approximately $174 million based on the market price of MasTec common stock on the date of closing. Total cash paid for acquisitions, net, includes approximately $44 million of cash acquired. Long-term debt in the table above includes $300 million aggregate principal balance of 6.625% senior unsecured notes that were assumed in connection with the acquisition of IEA. See Note 7 - Debt for additional information. Consideration transferred for IEA includes the value of certain warrants that were originally issued by IEA, for which the remaining outstanding warrants as of December 31, 2022 had an estimated fair value of $3.1 million. Under the terms of the IEA merger agreement, holders of the IEA warrants became entitled to receive an amount in cash and shares of MasTec common stock upon exercise of the IEA warrants. The number of MasTec shares issued in connection with exercises of such IEA warrants in the first quarter of 2023 was de minimis. All remaining IEA warrants expired unexercised on March 26, 2023. Fair value gains related primarily to the expired warrants totaled approximately $2.6 million for the six month period ended June 30, 2023, which amount is reflected in other income. Contingent consideration included in the table above is composed of earn-out liabilities, which generally equal a portion of the acquired companies’ earnings before interest, taxes, depreciation and amortization (“EBITDA”) in excess of thresholds agreed upon with the sellers, if applicable. The earn-out arrangements for the 2022 acquisitions are payable annually and have five-year terms, as set forth in the respective purchase agreements, and were valued at approximately $3 million in the aggregate. Earn-outs are recorded within other current and other long-term liabilities, as appropriate, in the consolidated balance sheets. See Note 4 - Fair Value of Financial Instruments for details pertaining to fair value estimates for the Company’s earn-out arrangements. As of June 30, 2023, the range of remaining potential undiscounted earn-out liabilities for the 2022 acquisitions was estimated to be up to $4 million; however, there is no maximum payment amount. Current liabilities reflected in the table above include contingent liabilities for insurance and other matters. HMG Additional Payments. The HMG purchase agreement, for which the subject acquisition was effective in December 2021, provides for certain additional payments to be made to the sellers if certain acquired receivables are collected by the Company (the “Additional Payments”). Pursuant to the terms of the purchase agreement, a portion of the Additional Payments will be made in cash, with the remainder due in shares of MasTec common stock. The estimated number of potential shares that could be issued related to such Additional Payments will be based on the amounts ultimately collected and the share price as defined within the purchase agreement. Changes in the estimated fair value of potential shares that could be issued, which result from changes in MasTec’s share price as compared with the share price as defined within the purchase agreement, are reflected within other income or expense, as appropriate. For the three and six month periods ended June 30, 2023, unrealized fair value measurement activity related to the contingent shares totaled losses of approximately $3.8 million and $5.4 million, respectively. For both the three and six month periods ended June 30, 2022, unrealized fair value measurement activity related to the contingent shares totaled a gain of approximately $3.2 million. An Additional Payment of approximately $29.4 million was made in May 2022, which payment was composed of approximately $18 million in cash and 133,157 shares of MasTec common stock. As of June 30, 2023 and December 31, 2022, the estimated fair value of remaining Additional Payments totaled approximately $40 million and $37 million, respectively, which amounts are included within other current liabilities in the consolidated balance sheet. For the six month period ended June 30, 2023, the estimated fair value of remaining Additional Payments included the effect of unrealized fair value losses related to the contingent shares of app roximately $5.4 million and a reduction of approximately $2.4 million from changes in collections attributed to acquired balances. The estimated number of shares that would be paid in connection with the remaining Additional Payment liability totaled approximately 160,000 and 170,000 shares as of June 30, 2023 and December 31, 2022, respectively. Of the total remaining Additional Payments as of June 30, 2023, the amount due to the sellers, based on amounts collected as of June 30, 2023, totaled approximately $19.4 million, of which the amount due in shares totaled approximately $10.4 million, or 87,900 shares. See Note 2 - Earnings Per Share for the effect of the above referenced shares on the Company’s earnings per share calculations. Pro forma results. For the three month periods ended June 30, 2023 and 2022, unaudited supplemental pro forma revenue totaled approximately $2.9 billion and $3.0 billion, respectively, and unaudited supplemental pro forma net income totaled approximately $14.5 million and $27.2 million, respectively. For the six month periods ended June 30, 2023 and 2022, unaudited supplemental pro forma revenue totaled approximately $5.4 billion and $5.3 billion, respectively, and unaudited supplemental pro forma net loss totaled approximately $68.7 million and $47.4 million, respectively. Supplemental pro forma information for the Company’s first quarter 2023 acquisition has not been presented for the pre-acquisition periods due to the impracticability of obtaining accurate or reliable historical financial information for the assets of the entity that was acquired. Acquisition-related results . For the three and six month periods ended June 30, 2023, the Company’s consolidated results of operations included acquisition-related revenue of approximately $569.7 million and $970.3 million, respectively, including a total of approximately $520.6 million and $890.6 million, respectively, for IEA. For the three and six month periods ended June 30, 2022, the Company’s consolidated results of operations included acquisition-related revenue of approximately $602.3 million and $1,307.0 million, respectively, including a total of approximately $480.4 million and $1,028.5 million, respectively, for HMG and INTREN in the aggregate. For the three and six month periods ended June 30, 2023, the Company’s consolidated results of operations included acquisition-related net losses of approximately $13.3 million and $41.5 million, respectively, based on the Company’s consolidated effective tax rates, and for the three and six month periods ended June 30, 2022, the Company’s consolidated results of operations included acquisition-related net income of approximately $18.7 million and $9.4 million, respectively, based on the Company’s consolidated effective tax rates. These acquisition-related results include amortization of acquired intangible assets and certain acquisition integration costs, and exclude the effects of interest expense associated with consideration paid for the related acquisitions. Acquisition and integration costs . The Company has incurred certain acquisition and integration costs in connection with its recent acquisitions, which costs are included within general and administrative expenses, costs of revenue, excluding depreciation and amortization, and other expense, as appropriate. Acquisition and integration costs include: i) the costs of integrating acquired entities, such as: employee termination expenses, including employee compensation relating to the elimination of certain positions that were determined to be redundant, and other integration-type costs, including operating cost redundancies, facility consolidation expenses, lease termination expenses, losses on disposal of identified assets, system migration expenses, training and other integration costs; and ii) legal, professional and other fees associated with the consummation of these acquisitions, including fees paid in connection with certain transaction-related financing commitments, including, in the second half of 2022, bridge financing related to the IEA acquisition. The Company is currently in the process of integrating these acquisitions and expects to incur additional acquisition and integration expenses. For the three and six month periods ended June 30, 2023, such acquisition and integration costs totaled approximately $22.7 million and $39.8 million, respectively, of which $20.4 million and $35.0 million, respectively, was included within general and administrative expenses, and $2.3 million and $4.8 million, respectively, was included within costs of revenue, excluding depreciation and amortization, for the respective periods. Acquisition and integration costs for the three and six month periods ended June 30, 2022 totaled approximately $12.5 million and $26.1 million, respectively, which amounts were included within general and administrative expenses. As of June 30, 2023 and December 31, 2022, approximately $7.0 million and $5.5 million, respectively, was included within current liabilities within the consolidated balance sheets related to such costs. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments are primarily composed of cash and cash equivalents, accounts and notes receivable, cash collateral deposited with insurance carriers, life insurance assets, equity investments, certain other assets and investments, deferred compensation plan assets and liabilities, accounts payable and other current liabilities, acquisition-related contingent consideration and other liabilities, mandatorily redeemable non-controlling interests and debt obligations. Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability, also referred to as the “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 and Other Liabilities Acquisition-related contingent consideration and other liabilities is composed of earn-outs, which represent the estimated fair value of future amounts payable for businesses, including for mandatorily redeemable non-controlling interests (together, “Earn-outs”), that are contingent upon the acquired business achieving certain levels of earnings in the future. As of June 30, 2023 and December 31, 2022, the estimated fair value of the Company’s Earn-out liabilities totaled $99.2 million and $127.4 million, respectively, of which $0.7 million and $13.9 million, respectively, related to mandatorily redeemable non-controlling interests. Earn-out liabilities included within other current liabilities totaled approximately $31.5 million and $37.7 million as of June 30, 2023 and December 31, 2022, respectively. The fair values of the Company’s Earn-out liabilities are estimated using income approaches such as discounted cash flows or option pricing models, both of which incorporate significant inputs not observable in the market (Level 3 inputs), including management’s estimates and entity-specific assumptions, and are evaluated on an ongoing basis. Key assumptions include the discount rate, which was 12.0% as of June 30, 2023, 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. The ultimate payment amounts for the Company’s Earn-out liabilities will be determined based on the actual results achieved by the acquired businesses. As of June 30, 2023, the range of potential undiscounted Earn-out liabilities was estimated to be between $16 million and $121 million; however, there is no maximum payment amount. Earn-out activity consists primarily of additions from new business combinations; changes in the expected fair value of future payment obligations; and payments. For both the three and six month periods ended June 30, 2023, there were no additions from new business combinations. For the three month period ended June 30, 2022, there were no additions from new business combinations, and additions for the six month period ended June 30, 2022 totaled approximately $1.7 million. There were no measurement period adjustments in either of the three or six month periods ended June 30, 2023. Measurement period adjustments totaled an increase of approximately $3.4 million for the three month period ended June 30, 2022 and related to the Company’s Oil and Gas segment, and for the six month period ended June 30, 2022, totaled an increase, net, of approximately $1.5 million and related to a net increase in the Company’s Oil and Gas segment, partially offset by a decrease in its Communications segment. For the three and six month periods ended June 30, 2023, fair value adjustments totaled a decrease, net, of approximately $1.8 million and $2.1 million, respectively, and related to a net decrease in the Company’s Communications segment, partially offset by a net increase, primarily within the Company’s Clean Energy and Infrastructure and Oil and Gas segments. The decrease in the Communications segment included a reduction of approximately $11.6 million related to mandatorily redeemable non-controlling interests for both periods. For both the three and six month periods ended June 30, 2022, fair value adjustments totaled a decrease, net, of approximately $1.3 million and related primarily to the Company’s Communications segment. For the three and six month periods ended June 30, 2023, Earn-out payments totaled approximately $24.5 million and $26.1 million, respectively, including approximately $1.7 million related to mandatorily redeemable non-controlling interests for the six month period ended June 30, 2023. For both the three and six month periods ended June 30, 2022, Earn-out payments totaled $26.8 million. Equity Investments The Company’s equity investments as of June 30, 2023 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”); (ii) a 15% equity interest in Cross Country Infrastructure Services, Inc. (“CCI”); (iii) the Company’s 50% equity interests in each of FM Technology Holdings, LLC, FM USA Holdings, LLC and All Communications Solutions Holdings, LLC, collectively “FM Tech”; (iv) the Company’s interests in certain proportionately consolidated non-controlled contractual joint ventures; and (v) certain other 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. The Company has determined that certain of its investment arrangements are variable interest entities (“VIEs”). As of June 30, 2023, except for one individually insignificant VIE, the Company does not have the power to direct the primary activities that most significantly impact the economic performance of its VIEs, nor is it the primary beneficiary. Accordingly, except for the previously mentioned VIE, the Company’s VIEs are not consolidated. The carrying values of the Company’s VIEs totaled approximately $26 million and $24 million as of June 30, 2023 and December 31, 2022, respectively, which amounts are recorded within other long-term assets in the consolidated balance sheets, and management believes that the Company’s maximum exposure to loss for its VIEs, inclusive of additional financing commitments, approximated $37 million for both periods. 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, if any, less impairment, which is referred to as the “adjusted cost basis.” As of June 30, 2023 and December 31, 2022, the aggregate carrying value of the Company’s equity investments, including equity investments measured on an adjusted cost basis, totaled approximately $321 million and $306 million, respectively. As of both June 30, 2023 and December 31, 2022, equity investments measured on an adjusted cost basis, including the Company’s $15 million investment in CCI, totaled approximately $20 million. There were no impairments related to these investments in any of the three or six month periods ended June 30, 2023 or 2022. The Waha JVs . The Waha JVs own and operate certain pipeline infrastructure that transports natural gas to the Mexican border for export. The Company’s investments in the Waha JVs are accounted for as equity method investments. 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 $7.5 million and $15.4 million for the three and six month periods ended June 30, 2023, respectively, and totaled approximately $7.6 million and $15.0 million for the three and six month periods ended June 30, 2022, respectively. Distributions of earnings from the Waha JVs, which are included within operating cash flows, totaled approximately $1.5 million and $5.8 million for the three and six month periods ended June 30, 2023, respectively, and totaled approximately $4.6 million and $7.6 million for the three and six month periods ended June 30, 2022, respectively. Cumulative undistributed earnings from the Waha JVs, which represents cumulative equity in earnings for the Waha JVs less distributions of earnings, totaled $120.2 million as of June 30, 2023. 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 equity method goodwill associated with capitalized investment costs, totaled approximately $273 million and $263 million as of June 30, 2023 and December 31, 2022, 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 (the “Waha JV 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 six month periods ended June 30, 2023, the Company’s proportionate share of unrecognized unrealized activity on the Waha JV swaps totaled gains of approximately $6.1 million and $0.5 million, respectively, or $4.6 million and $0.4 million, net of tax, respectively. For the three and six month periods ended June 30, 2022, unrecognized unrealized activity related to the Waha JV swaps totaled gains of approximately $10.4 million and $28.7 million, respectively, or $7.8 million and $21.6 million, net of tax, respectively. Other Investments . The Company has equity interests in certain telecommunications entities that are accounted for as equity method investments. As of June 30, 2023 and December 31, 2022, the Company had an aggregate investment of approximately $22 million and $21 million, respectively, in these entities, including $18 million for FM Tech as of both periods. The Company made no equity contributions related to its investments in these telecommunications entities in either of the three or six month periods ended June 30, 2023. For the three and six month periods ended June 30, 2022, the Company made equity contributions related to its investments in these telecommunications entities totaling approximately $0.6 million and $1.1 million, respectively. Equity in losses, net, related to the Company’s proportionate share of losses from these telecommunications entities totaled approximately $0.1 million for the three month period ended June 30, 2023, and for the six month period ended June 30, 2023, equity in earnings, net, related to the Company’s proportionate share of income from these entities totaled approximately $1.0 million. For the three and six month periods ended June 30, 2022, equity in losses, net, related to the Company’s proportionate share of losses from these entities totaled approximately $0.5 million and $0.9 million, respectively. Certain of these telecommunications entities provide services to MasTec. Expense recognized in connection with services provided by these entities totaled approximately $0.5 million and $1.0 million for the three and six month periods ended June 30, 2023, respectively, and totaled approximately $1.6 million and $2.5 million for the three and six month periods ended June 30, 2022, respectively. As of both June 30, 2023 and December 31, 2022, related amounts payable to these entities totaled approximately $0.2 million. In addition, the Company had an employee leasing arrangement with one of these entities and has advanced certain amounts to these entities. For both the three and six month periods ended June 30, 2023, employee lease expenses and advances to these entities totaled approximately $0.4 million. For the three and six month periods ended June 30, 2022, there were no employee lease expenses or advances to these entities. As of June 30, 2023 and December 31, 2022, receivables related to these arrangements totaled approximately $4.1 million and $3.8 million, respectively. The Company has 49% equity interests in certain entities included within its Communications and Power Delivery segments that are accounted for as equity method investments, for which its aggregate investment as of both June 30, 2023 and December 31, 2022 totaled approximately $3 million. For the three and six month periods ended June 30, 2023, equity in earnings, net, related to these entities totaled approximately $0.2 million and $0.1 million, respectively, and for the three and six month periods ended June 30, 2022, equity in losses, net, totaled approximately $0.2 million and $0.3 million, respectively. Certain of these entities provide construction services to MasTec. Expense recognized in connection with construction services provided by these entities totaled approximately $0.2 million and $0.6 million for the three and six month periods ended June 30, 2023, respectively, and for the three and six month periods ended June 30, 2022, expenses recognized totaled approximately $1.4 million and $5.0 million, respectively. As of both June 30, 2023 and December 31, 2022, related amounts payable were de minimis. In addition, the Company has line of credit arrangements with these entities, which, as of June 30, 2023 and December 31, 2022, provide for up to $3.0 million and $4.5 million, respectively, of borrowing availability. There were no borrowings as of June 30, 2023, and as of December 31, 2022, $0.6 million was drawn, which amount was included within other current assets in the consolidated balance sheets. The Company has a 75% equity interest in Confluence Networks, LLC (“Confluence”), an undersea fiber-optic communications systems developer and VIE, which is accounted for as an equity method investment. As of June 30, 2023, a total of $2.1 million of the $2.5 million initial commitment had been funded, of which $0.2 million was funded in both the six month periods ended June 30, 2023 and 2022. Equity in losses related to the Company’s proportionate share of losses from this investment was de minimis for the three month period ended June 30, 2023, and totaled approximately $0.1 million for the six month period ended June 30, 2023. For the three and six month periods ended June 30, 2022, equity in losses related to this entity totaled approximately $0.1 million and $0.3 million, respectively. The Company also has certain equity investments in American Virtual Cloud Technologies, Inc. (“AVCT”), in which the Company has no active involvement. AVCT filed for bankruptcy in the first quarter of 2023, during which period the Company wrote-off its remaining $0.2 million investment. Senior Notes As of both June 30, 2023 and December 31, 2022, the gross carrying amount of the Company’s 4.50% senior notes due August 15, 2028 (the “4.50% Senior Notes”) totaled $600.0 million, and their estimated fair value totaled approximately $552.9 million and $534.0 million for the respective periods. As of June 30, 2023 and December 31, 2022, the gross carrying amount of the Company’s 6.625% senior notes due August 15, 2029 totaled $282.8 million and $281.2 million, respectively, which notes are composed of $225.1 million aggregate principal amount of 6.625% IEA senior notes (the “6.625% IEA Senior Notes”) and $74.9 million aggregate principal amount of 6.625% MasTec senior notes (the “6.625% MasTec Senior Notes”), collectively, the “6.625% Senior Notes”). The estimated fair value of the 6.625% Senior Notes totaled approximately $285.0 million and $280.5 million as of June 30, 2023 and December 31, 2022, respectively. The estimated fair values of the Company’s 4.50% Senior Notes and 6.625% Senior Notes were determined based on an exit price approach using Level 1 inputs. |
Accounts Receivable, Net of All
Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities | 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): June 30, December 31, Contract billings $ 1,492.2 $ 1,408.1 Less allowance (7.0) (8.4) Accounts receivable, net of allowance $ 1,485.2 $ 1,399.7 Retainage 353.9 401.9 Unbilled receivables 1,496.8 1,328.0 Contract assets $ 1,850.7 $ 1,729.9 Contract billings represent the amount of performance obligations that have been billed but not yet collected, whereas contract assets consist of unbilled receivables and retainage. Unbilled receivables represent 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). For the six month period ended June 30, 2023, provisions for credit losses totaled a recovery of approximately $0.7 million, and for the six month period ended June 30, 2022, provisions for credit losses totaled approximately $0.5 million. Impairment losses on contract assets were not material in either period. Contract liabilities consist primarily of deferred revenue. 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 deferred revenue. Contract liabilities also include the amount of any accrued project losses. Total contract liabilities, including accrued project losses, totaled approximately $487.2 million and $406.2 million as of June 30, 2023 and December 31, 2022, respectively, of which deferred revenue comprised approximately $476.7 million and $390.3 million, respectively. The increase in contract liabilities as of June 30, 2023 was driven primarily by ordinary course project activity related to new project starts within the Company’s Clean Energy and Infrastructure segment. For the six month period ended June 30, 2023, the Company recognized revenue of approximately $342.2 million related to amounts that were included in deferred revenue as of December 31, 2022, resulting primarily from the advancement of physical progress on the related projects during the period, including amounts from recently acquired businesses. 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. Discount charges related to these arrangements, which are included within interest |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 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): June 30, December 31, Land $ 73.6 $ 73.5 Buildings and leasehold improvements 91.0 86.7 Machinery, equipment and vehicles 2,957.5 2,797.0 Office equipment, furniture and internal-use software 315.4 286.8 Construction in progress 52.9 67.4 Total property and equipment $ 3,490.4 $ 3,311.4 Less accumulated depreciation and amortization (1,736.7) (1,557.3) Property and equipment, net $ 1,753.7 $ 1,754.1 As of June 30, 2023 and December 31, 2022, the gross amount of capitalized internal-use software totaled $202.9 million and $186.6 million, respectively, and, net of accumulated amortization, totaled $48.1 million and $39.9 million, respectively. Beginning in the second quarter of 2023, the depreciable lives of certain assets were updated on a prospective basis to better align the respective assets’ lives with their expected useful lives, based on our current assessment of the physical and economic factors of the related assets, which resulted in a $2 million decrease in depreciation expense for the three and six month periods ended June 30, 2023. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table provides details of the carrying values of debt as of the dates indicated (in millions): Description Maturity Date June 30, December 31, Senior credit facility: November 1, 2026 Revolving loans $ 1,007.0 $ 896.0 Term loan 345.6 350.0 4.50% Senior Notes August 15, 2028 600.0 600.0 6.625% Senior Notes August 15, 2029 282.8 281.2 2022 Term Loan Facility October 7, 2025 and October 7, 2027 700.0 700.0 Finance lease and other obligations 404.1 414.5 Total debt obligations $ 3,339.5 $ 3,241.7 Less unamortized deferred financing costs (15.6) (17.6) Total debt, net of deferred financing costs $ 3,323.9 $ 3,224.1 Current portion of long-term debt 169.3 171.9 Long-term debt $ 3,154.6 $ 3,052.2 Senior Credit Facility As of June 30, 2023, the Company’s senior unsecured credit facility (the “Credit Facility”) had aggregate borrowing commitments totaling approximately $2.25 billion , which amount is composed of $1.9 billion of revolving commitments and a term loan with an original principal amount of $350 million (the “Term Loan”). The Term Loan is subject to amortization in quarterly principal installments of approximately $2.2 million, which quarterly installments increase to approximately $4.4 million in March 2025 until maturity. Quarterly principal installments on the Term Loan are subject to adjustment, if applicable, for certain prepayments. As of June 30, 2023 and December 31, 2022, the fair values of the Credit Facility and Term Loan, as estimated based on an income approach utilizing significant unobservable Level 3 inputs including discount rate assumptions, approximated their carrying values. Revolving loans accrued interest at weighted average rates of approximately 6.90% and 5.82% per annum a s of June 30, 2023 and December 31, 2022 , respectively. The Term Loan accrued interest at rates of 6.83% and 5.80% as of June 30, 2023 and December 31, 2022, respectively. Letters of credit of approximately $111.0 million and $143.1 million were issued as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023 and December 31, 2022, letter of credit fees accrued at 0.6875% and 0.5625% per annum, respectively, for performance standby letters of credit, and for financial standby letters of credit, accrued at 1.625% and 1.375% per annum, respectively. Outstanding letters of credit mature at various dates and most have automatic renewal provisions, subject to prior notice of cancellation. As of June 30, 2023 and December 31, 2022, availability for revolving loans totaled $782.0 million and $860.9 million, respectively, or up to $539.0 million and $506.9 million, respectively, for new letters of credit. T here were no borrowings denominated in foreign currencies as of either June 30, 2023 or December 31, 2022. Revolving loan borrowing capacity included $300.0 million of availability in either Canadian dollars or Mexican pesos as of both June 30, 2023 and December 31, 2022. The unused facility fee as of June 30, 2023 and December 31, 2022 accrued at a rate of 0.225% and 0.200% per annum, respectively. Other Credit Facilities The Company has other credit facilities that support the working capital requirements of its foreign operations and certain letter of credit issuances. There were no outstanding borrowings under the Company’s other credit facilities as of either June 30, 2023 or December 31, 2022. Additionally, the Company has a separate credit facility, under which it may issue performance standby letters of credit. As of June 30, 2023 and December 31, 2022, letters of credit issued under this facility totaled $17.2 million and $23.6 million, respectively, which accrued fees at 0.90% and 0.75% per annum, respectively. 2022 Term Loan Facility As of June 30, 2023 , the Company has $700.0 million of additional unsecured term loans entered into in connection with the acquisition of IEA, composed of a three Three Three Three Three As of June 30, 2023 and December 31, 2022 , the fair value of the 2022 Term Loan Facility, as estimated based on an income approach, utilizing significant unobservable Level 3 inputs including discount rate assumptions, approximated its carrying value. Debt Covenants MasTec was in compliance with the provisions and covenants of its outstanding debt instruments as of both June 30, 2023 and December 31, 2022. Additional Information As of June 30, 2023 and December 31, 2022, accrued interest payable, which is recorded within other accrued expenses in the consolidated balance sheets, totaled $25.4 million and $24.8 million, respectively. For additional information pertaining to the Company’s debt instruments, see Note 7 - Debt in the Company’s 2022 Form 10-K. |
Lease Obligations
Lease Obligations | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease Obligations | Lease Obligations 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. As of June 30, 2023, the Company’s leases have remaining lease terms of up to sixteen years. Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for one Finance Leases The gross amount of assets held under finance leases as of June 30, 2023 and December 31, 2022 totaled $701.0 million and $720.1 million, respectively. Assets held under finance leases, net of accumulated depreciation Operating Leases Operating lease additions for the three month periods ended June 30, 2023 and 2022 totaled $97.2 million and $18.4 million, respectively, and for the six month periods ended June 30, 2023 and 2022, totaled $123.5 million and $45.3 million, respectively. For the three month periods ended June 30, 2023 and 2022, rent expense for leases that have terms in excess of one year totaled approximately $37.5 million and $33.9 million, respectively, of which $3.6 million and $2.5 million, respectively, represented variable lease costs. For the six month periods ended June 30, 2023 and 2022, rent expense for such leases totaled approximately $72.7 million and $67.9 million, respectively, of which $7.6 million and $5.5 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $130.7 million and $53.7 million for the three month periods ended June 30, 2023 and 2022, respectively, and totaling approximately $241.8 million and $159.3 million for the six month periods ended June 30, 2023 and 2022, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows. Additional Lease Information Future minimum lease commitments as of June 30, 2023 were as follows (in millions): Finance Leases Operating 2023, remaining six months $ 85.1 $ 64.6 2024 141.5 113.3 2025 104.8 88.4 2026 47.7 59.0 2027 10.9 27.6 Thereafter 1.8 34.4 Total minimum lease payments $ 391.8 $ 387.3 Less amounts representing interest (24.3) (33.7) Total lease obligations, net of interest $ 367.5 $ 353.6 Less current portion 144.9 117.6 Long-term portion of lease obligations, net of interest $ 222.6 $ 236.0 |
Lease Obligations | Lease Obligations 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. As of June 30, 2023, the Company’s leases have remaining lease terms of up to sixteen years. Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for one Finance Leases The gross amount of assets held under finance leases as of June 30, 2023 and December 31, 2022 totaled $701.0 million and $720.1 million, respectively. Assets held under finance leases, net of accumulated depreciation Operating Leases Operating lease additions for the three month periods ended June 30, 2023 and 2022 totaled $97.2 million and $18.4 million, respectively, and for the six month periods ended June 30, 2023 and 2022, totaled $123.5 million and $45.3 million, respectively. For the three month periods ended June 30, 2023 and 2022, rent expense for leases that have terms in excess of one year totaled approximately $37.5 million and $33.9 million, respectively, of which $3.6 million and $2.5 million, respectively, represented variable lease costs. For the six month periods ended June 30, 2023 and 2022, rent expense for such leases totaled approximately $72.7 million and $67.9 million, respectively, of which $7.6 million and $5.5 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $130.7 million and $53.7 million for the three month periods ended June 30, 2023 and 2022, respectively, and totaling approximately $241.8 million and $159.3 million for the six month periods ended June 30, 2023 and 2022, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows. Additional Lease Information Future minimum lease commitments as of June 30, 2023 were as follows (in millions): Finance Leases Operating 2023, remaining six months $ 85.1 $ 64.6 2024 141.5 113.3 2025 104.8 88.4 2026 47.7 59.0 2027 10.9 27.6 Thereafter 1.8 34.4 Total minimum lease payments $ 391.8 $ 387.3 Less amounts representing interest (24.3) (33.7) Total lease obligations, net of interest $ 367.5 $ 353.6 Less current portion 144.9 117.6 Long-term portion of lease obligations, net of interest $ 222.6 $ 236.0 |
Stock-Based Compensation and Ot
Stock-Based Compensation and Other Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation and Other Employee Benefit Plans | 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 June 30, 2023, there were approximately 2,739,000 shares available for future grant. Non-cash stock-based compensation expense under all plans totaled $8.6 million and $6.8 million for the three month periods ended June 30, 2023 and 2022, respectively, and totaled $17.1 million and $13.2 million for the six month periods ended June 30, 2023 and 2022, respectively. Income tax benefits associated with stock-based compensation arrangements totaled $1.5 million and $1.2 million for the three month periods ended June 30, 2023 and 2022, respectively. For the six month periods ended June 30, 2023 and 2022, income tax benefits totaled $11.8 million and $3.4 million, respectively, including net tax benefits related to the vesting of share-based payment awards totaling $8.9 million and $0.9 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 June 30, 2023, total unearned compensation related to restricted shares was approximately $57.9 million, which amount is expected to be recognized over a weighted average period of approximately 2.0 years. The fair value of restricted shares that vested, which is based on the market price on the date of vesting, totaled approximately $0.7 million and $0.2 million for the three month periods ended June 30, 2023 and 2022, respectively, and totaled approximately $78.0 million and $19.2 million for the six month periods ended June 30, 2023 and 2022, respectively. Activity, restricted shares: (a) Restricted Per Share Weighted Average Grant Date Fair Value Non-vested restricted shares, as of December 31, 2022 2,049,280 $ 52.33 Granted 201,511 96.02 Vested (852,492) 27.68 Canceled/forfeited (30,072) 47.30 Non-vested restricted shares, as of June 30, 2023 1,368,227 $ 74.24 (a) Includes 1,000 and 2,150 restricted stock units as of June 30, 2023 and December 31, 2022, 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 participants. Under the ESPPs, eligible participants are permitted to purchase MasTec, Inc. common stock at 85% of the fair market value of the shares on the date of purchase, which occurs on the last trading day of each two week offering period. At the Company’s discretion, share purchases may be satisfied by delivering either newly issued common shares, or common shares reacquired on the open market or in privately negotiated transactions. For the three month periods ended June 30, 2023 and 2022, 25,353 shares and 31,888 share s, respectively, were purchased by participants under the Company’s ESPPs for $2.1 million and $1.8 million, respectively, and for the six month periods ended June 30, 2023 and 2022, 46,651 shares and 56,625 shares, respectively, were purchased for $3.8 million and $3.6 million , respectively. Shares purchased by participants under the Company’s ESPPs in each of the three and six month periods ended June 30, 2023 and 2022 were reacquired by the Company on the open market. Compensation expense associated with the Company’s ESPPs totaled approximately $0.4 million and $0.3 million f or the three month periods ended June 30, 2023 and 2022, respectively, and totaled approximately $0.7 million for both the six month periods ended June 30, 2023 and 2022. |
Other Retirement Plans
Other Retirement Plans | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Other Retirement Plans | Other Retirement Plans Multiemployer Plans. Certain of MasTec’s subsidiaries contribute amounts to multiemployer pension and other multiemployer benefit plans and trusts (“MEPPs”). 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 are 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 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 June 30: 2023 7,581 7,727 $ 21.3 $ 16.5 $ 37.8 2022 6,672 7,136 $ 22.3 $ 13.9 $ 36.2 For the Six Months Ended June 30: 2023 6,806 7,727 $ 43.1 $ 29.9 $ 73.0 2022 6,601 7,136 $ 39.3 $ 27.1 $ 66.4 The fluctuations in the number of employees covered under multiemployer plans and associated contributions in the table above related primarily to the timing of activity for the Company’s union resource-based projects, as well as the effects of the Company’s recent acquisitions. For the three and six month periods ended June 30, 2023, multiemployer plan activity was driven primarily by project work within the Company’s Power Delivery operations and acquisition-related project work within the Company’s Clean Energy and Infrastructure operations, whereas for the three and six month periods ended June 30, 2022, activity was driven primarily by acquisition-related project work within the Company’s Power Delivery operations. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Equity | Equity Share Activity The Company’s share repurchase programs provide for the repurchase, from time to time, of MasTec common shares in open market transactions or in privately negotiated transactions in accordance with applicable securities laws. 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. There were no share repurchases under the Company’s share repurchase programs in either of the three or six month periods ended June 30, 2023. For the three and six month periods ended June 30, 2022, the Company repurchased 0.9 million and 1.1 million shares of its common stock, respectively, under its share repurchase programs for an aggregate purchase price of approximately $67.5 million and $81.3 million, respectively. Of the total repurchased shares, 0.1 million shares were repurchased in the first quarter of 2022 for $8.6 million under the Company’s December 2018 $100 million share repurchase program, which completed the program. The remaining 1.0 million shares were repurchased for $72.7 million under the Company’s March 2020 $150 million share repurchase program. As of June 30, 2023, $77.3 million was available for future share repurchases under the Company’s March 2020 share repurchase program. Accumulated Other Comprehensive Loss Unrealized foreign currency translation activity, net, in each of the three and six month periods ended June 30, 2023 and 2022 relates primarily to the Company’s operations in Canada and Mexico. Unrealized investment activity in each of the three and six month periods ended June 30, 2023 and 2022 relates to unrealized fair value gains or losses associated with the Waha JV interest rate swaps. See Note 4 - Fair Value of Financial Instruments for additional information. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIn 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 June 30, 2023 and 2022, the Company’s consolidated effective tax rates were 14.9% and 10.9%, respectively, and for the six month periods ended June 30, 2023 and 2022 were 39.6% and 37.4%, respectively. The Company’s effective tax rate for the six month period ended June 30, 2023 included the effects of a net tax benefit of approximately $8.9 million related to share-based payment awards offset by an increase in non-deductible expenses, and for the six month period ended June 30, 2022, included a net benefit of approximately $1.0 million related to share-based payment awards as well as a benefit of approximately $2.0 million from the true-up of certain prior year non-deductible expenses. |
Segments and Related Informatio
Segments and Related Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segments and Related Information | Segments and Related Information Segment Discussion The Company manages its operations under five operating segments, which represent its five reportable segments: (1) Communications; (2) Clean Energy and Infrastructure; (3) Oil and Gas; (4) Power Delivery 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 primarily 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, as well as infrastructure for utilities, among others. The Clean Energy and Infrastructure segment primarily serves energy, utility, government and other end-markets through the installation and construction of power generation facilities, primarily from clean energy and renewable sources, such as wind, solar, biomass, natural gas and hydrogen, as well as battery storage for renewable energy; various types of heavy civil and industrial infrastructure, including rail; and environmental remediation services. The Company performs engineering, construction, maintenance and other services for pipeline distribution, including natural gas, carbon capture sequestration, water and pipeline integrity and other services for the energy and utilities industries through its Oil and Gas segment. The Power Delivery segment primarily serves the energy and utility industries through the engineering, construction and maintenance of power transmission and distribution infrastructure, including electrical and gas transmission lines, distribution network systems and substations; and environmental planning and compliance services. The Other segment includes certain equity investees, the services of which may vary from those provided by the Company’s primary segments, as well as other small business units that perform construction and other services for certain 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 its 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. 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 June 30, For the Six Months Ended June 30, Revenue: 2023 2022 2023 2022 Communications (a) $ 868.7 $ 822.0 $ 1,675.2 $ 1,486.2 Clean Energy and Infrastructure 969.7 494.5 1,794.6 930.4 Oil and Gas 341.8 341.2 598.3 552.2 Power Delivery 702.6 646.5 1,412.0 1,296.9 Other — — — — Eliminations (8.7) (2.4) (21.3) (9.5) Consolidated revenue $ 2,874.1 $ 2,301.8 $ 5,458.8 $ 4,256.2 (a) Revenue generated primarily by utilities customers represented 23.6% and 24.1% of Communications segment revenue for the three month periods ended June 30, 2023 and 2022, respectively, and represented 23.6% and 24.8% for the six month periods ended June 30, 2023 and 2022, respectively. For the Three Months Ended June 30, For the Six Months Ended June 30, EBITDA: 2023 2022 2023 2022 Communications $ 89.5 $ 84.2 $ 142.3 $ 124.6 Clean Energy and Infrastructure 33.2 (5.2) 38.5 5.6 Oil and Gas 77.0 62.8 91.5 84.2 Power Delivery 57.1 41.4 104.5 87.5 Other 6.8 7.4 13.9 14.4 Segment EBITDA $ 263.6 $ 190.6 $ 390.7 $ 316.3 For the three month period ended June 30, 2023, Communications, Clean Energy and Infrastructure and Power Delivery EBITDA included $4.6 million, $16.4 million and $0.3 million, respectively, of acquisition and integration costs related to the Company’s recent acquisitions, and Corporate EBITDA included $1.4 million of such costs, and, for the six month period ended June 30, 2023, $13.5 million, $21.7 million, $1.9 million and $2.7 million, of such costs were included in EBITDA of the segments and Corporate, respectively. For the three month period ended June 30, 2022, Communications, Oil and Gas, Power Delivery and Corporate EBITDA included $1.1 million, $1.4 million, $7.0 million and $3.0 million of such acquisition and integration costs, respectively, and for the six month period ended June 30, 2022, $1.9 million, $3.3 million, $14.1 million and $6.8 million, of such costs were included in EBITDA of the segments and Corporate, respectively. Additionally, for the six month period ended June 30, 2023, Corporate EBITDA included fair value losses related to an investment of $0.2 million, and for the three and six month periods ended June 30, 2022, Corporate EBITDA included $2.2 million and $7.1 million of such fair value losses, respectively. For the Three Months Ended June 30, For the Six Months Ended June 30, EBITDA Reconciliation: 2023 2022 2023 2022 Income (loss) before income taxes $ 19.7 $ 18.2 $ (105.6) $ (29.9) Plus: Interest expense, net 59.4 19.4 112.1 35.4 Depreciation 103.0 87.0 210.3 172.2 Amortization 42.0 27.7 84.0 53.3 Corporate EBITDA 39.4 38.3 89.9 85.3 Segment EBITDA $ 263.6 $ 190.6 $ 390.7 $ 316.3 For the Three Months Ended June 30, For the Six Months Ended June 30, Depreciation and Amortization: 2023 2022 2023 2022 Communications $ 34.0 $ 30.7 $ 68.6 $ 59.7 Clean Energy and Infrastructure 31.7 11.7 70.1 23.1 Oil and Gas 36.6 32.2 70.9 63.8 Power Delivery 40.2 36.8 79.4 72.5 Other — — — — Corporate 2.6 3.3 5.3 6.4 Consolidated depreciation and amortization $ 145.1 $ 114.7 $ 294.3 $ 225.5 Assets: June 30, December 31, Communications $ 2,495.2 $ 2,378.6 Clean Energy and Infrastructure 2,819.6 2,979.9 Oil and Gas 1,692.1 1,544.2 Power Delivery 1,856.8 1,967.9 Other 307.6 297.3 Corporate 116.5 125.4 Consolidated assets $ 9,287.8 $ 9,293.3 Foreign Operations and Other. MasTec operates primarily in the United States and Canada, and, to a far lesser extent, in Mexico, the Caribbean and India. Revenue derived from U.S. operations totaled $2.9 billion and $2.3 billion for the three month periods ended June 30, 2023 and 2022, respectively, and totaled $5.4 billion and $4.2 billion for the six month periods ended June 30, 2023 and 2022, respectively. Revenue derived from foreign operations totaled $22.1 million and $51.3 million for the three month periods ended June 30, 2023 and 2022, respectively, and totaled $49.6 million and $75.8 million for the six month periods ended June 30, 2023 and 2022, respectively. Revenue from foreign operations was derived primarily from the Company’s Canadian operations in its Oil and Gas segment. Long-lived assets held in the U.S. included property and equipment, net, of $1.7 billion as of both June 30, 2023 and December 31, 2022, and for the Company’s businesses in foreign countries, totaled $19.4 million and $21.0 million, for the respective periods. Intangible assets and goodwill, net, related to the Company’s U.S. operations totaled approximately $2.9 billion and $3.0 billion as of June 30, 2023 and December 31, 2022, respectively, and for the Company’s businesses in foreign countries, totaled approximately $34.7 million and $35.5 million, respectively. Substantially all of the Company’s long-lived and intangible assets and goodwill in foreign countries relate to its Canadian operations. As of June 30, 2023 amounts due from customers from which foreign revenue was derived accounted for less than 1% of the Company’s consolidated net accounts receivable position, which is calculated as accounts receivable, net, less deferred revenue, and as of December 31, 2022, such amounts accounted for approximately 1% of the Company’s consolidated net accounts receivable position. Revenue from governmental entities for the three and six month periods ended June 30, 2023 totaled approximately 12% and 10%, of total revenue, respectively, and for both the three and six month periods ended June 30, 2022, totaled approximately 7% of total revenue, substantially all of which was derived from the Company’s U.S. operations. Significant Customers No customer represented greater than 10% of the Company’s total consolidated revenue in any of the three or six month periods ended June 30, 2023 and 2022. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 other project disputes, other project-related liabilities 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. Acquired Legacy Solar Matter. On April 28, 2023, a jury found IEA and its subsidiary, IEA Constructors, LLC (“IEAC” and, together with IEA, the “IEA Entities”), liable to plaintiffs H&L Farms LLC, Shaun Harris, and Amie Harris following a trial in the U.S. District Court for the Middle District of Georgia, Columbus Division (the “Court”), against the IEA Entities, IEAC’s customer, Silicon Ranch Corporation (“SRC”), and engineering firm Westwood Professional Services, Inc. The suit, filed in August 2021, arose out of a project that commenced in 2021 involving the construction by IEAC of a solar farm for SRC. The project was constructed on SRC’s property located adjacent to a 1,400 acre tract of land that plaintiffs purchased in March 2021 for approximately $3.3 million. The plaintiffs brought various causes of action under Georgia law, including trespass, nuisance, and negligence, arising out of the defendants’ alleged failure to exercise appropriate efforts required by Georgia law to prevent and remediate soil erosion and sedimentary run-off that flowed from SRC’s property into a 21-acre lake on plaintiffs’ property. Following trial, the jury awarded Mr. and Mrs. Harris $4.5 million each for loss of use and enjoyment of the lake and awarded H&L Farms (the legal owner) another $1.5 million in remediation costs. These damages were apportioned 30% to SRC, 40% to IEA, and 30% to IEAC. The jury also awarded $25 million in punitive damages against SRC and $50 million in punitive damages against each of the IEA Entities. The Court entered judgment on the verdict and issued an injunction requiring IEAC to remediate the sedimentary run-off as quickly as possible. Subsequently, the IEA Entities filed a post-trial motion seeking multiple avenues of relief from the verdict, including elimination of all damages against IEA because they believe there was no evidence to support holding it liable, a new trial for both IEA Entities because of serial misconduct of plaintiffs’ counsel, a substantial reduction of the remediation award because it was not supported by the evidence and of the loss of use and enjoyment awards because they far exceed the appraised value of the lake. The motion also seeks a reduction of the punitive damages to $250,000 per plaintiff under Georgia’s statutory cap based on the IEA entities’ belief of an absence of evidence that either of the IEA Entities acted with a specific intent to cause harm and, failing that, to no more than the amount of the compensatory damages left standing after post-trial review. Plaintiffs have filed their opposition to the motion, which is now pending the Court’s ruling. Following trial, Mr. and Mrs. Harris filed a motion for damages under the Georgia frivolous claim/defense statute, seeking $1 million in damages for each of them in compensation for their ostensible stress in pursuing their claims in litigation and an unspecified amount of attorneys’ fees which could be as much as 45% of any amount of damages remaining after post-verdict review. The IEA Entities have challenged this motion, which is now pending the Court’s determination, on both substantive and procedural grounds. 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 and 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 June 30, 2023 and December 31, 2022, there were $128.2 million and $166.7 million, respectively, of letters of credit issued under the Company’s credit facilities. Letter of credit claims have historically not been material. The Company is not aware of any material claims relating to its outstanding letters of credit as of June 30, 2023 or December 31, 2022. 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 June 30, 2023 and December 31, 2022, outstanding performance and payment bonds approximated $5,389.2 million and $4,855.5 million, respectively, and estimated costs to complete projects secured by these bonds totaled $1,789.7 million and $1,739.9 million, respectively. Included in these balances as of June 30, 2023 and December 31, 2022 are $357.9 million and $115.8 million, respectively, of outstanding performance and payment bonds issued on behalf of the Company’s proportionately consolidated non-controlled contractual joint ventures, representing the Company’s proportionate share of the total bond obligation for the related projects. Investment and Strategic Arrangements. 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, as well as undivided interests, ranging from 25% to 50%, in each of four civil construction projects, and one 49% undivided interest in pipeline project work. 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 June 30, 2023, the Company was not aware of material future claims against it in connection with these arrangements. For the six month period ended June 30, 2023, the Company provided $0.5 million of project-related financing to its contractual joint ventures, which amount was outstanding as of June 30, 2023. Included in the Company’s cash balances as of June 30, 2023 and December 31, 2022 are amounts held by entities that are proportionately consolidated totaling $23.2 million and $25.7 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 and strategic 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 information pertaining to the Company’s investment and strategic 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. The Company manages certain of its insurance liabilities indirectly through its wholly-owned captive insurance company, which reimburses claims up to the applicable insurance limits. Captive insurance-related cash balances totaled approximately $0.9 million and $1.1 million as of June 30, 2023 and December 31, 2022, respectively, and are generally not available for use in the Company’s other operations. As of June 30, 2023 and December 31, 2022, MasTec’s estimated liability for unpaid claims and associated expenses, including incurred but not reported losses related to these policies, totaled $196.0 million and $176.7 million, respectively, of which $123.9 million and $109.3 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 $4.4 million and $4.1 million as of June 30, 2023 and December 31, 2022, 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 $56.4 million and $95.6 million as of June 30, 2023 and December 31, 2022, respectively. Outstanding surety bonds related to self-insurance programs amounted to $148.6 million and $110.9 million as of June 30, 2023 and December 31, 2022, respectively. 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 MEPPs, 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 June 30, 2023, 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 or increased contributions on underfunded plans. 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, which could be negatively affected by economic and market conditions, and the level of underfunding of such plans. In connection with the IEA acquisition, the Company assumed a multiemployer pension plan withdrawal liability, under which IEA is currently obligated to make monthly payments of approximately $10,000. As of both June 30, 2023 and December 31, 2022, the remaining obligation approximated $1.9 million. 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 June 30, 2023 and December 31, 2022, the Company had accrued project close-out liabilities of approximately $20 million and $40 million, respectively. The Company is not aware of any other material asserted or unasserted claims in connection with its potential indemnity obligations. Other Guarantees. From time to time in the ordinary course of its business, 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 following substantial completion of a project. Much of the work performed by the Company is evaluated for defects shortly after the work is completed. 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. Warranty claims have historically not been material. Concentrations of Risk. The Company had approximately 1,305 customers for the six month period ended June 30, 2023. No customer represented greater than 10% of the Company’s consolidated net accounts receivable position, which is calculated as accounts receivable, net, less deferred revenue, as of either June 30, 2023 or December 31, 2022. For the three month periods ended June 30, 2023 and 2022, the Company derived approximately 35% a nd 42% , respectively, of its revenue from its top ten customers, and derived 36% and 43% for the six month periods ended June 30, 2023 and 2022, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 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, business development and administrative activities, from a number of different vendors on a non-exclusive basis, and from time to time, rents equipment to, sells certain supplies, or performs construction services on behalf of, entities in which members of subsidiary management have ownership or commercial interests. For the three month periods ended June 30, 2023 and 2022, such payments to related party entities totaled approximately $10.7 million and $7.8 million, respectively, and for the six month periods ended June 30, 2023 and 2022, totaled approximately $26.8 million and $14.6 million, respectively. Payables associated with such arrangements totaled approximately $1.3 million and $2.6 million as of June 30, 2023 and December 31, 2022, respectively. Revenue from such related party arrangements totaled approximately $5.2 million and $1.3 million for the three month periods ended June 30, 2023 and 2022, respectively, and for the six month periods ended June 30, 2023 and 2022, totaled approximately $7.4 million and $5.1 million, respectively. Related amounts receivable totaled approximately $4.4 million and $3.2 million as of June 30, 2023 and December 31, 2022, respectively. The Company rents and leases equipment and purchases certain supplies and servicing from CCI. 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, serves as the chairman of CCI, and a member of management of a MasTec subsidiary and an entity that is owned by the Mas family are minority owners. For the three and six month periods ended June 30, 2023, MasTec paid CCI approximately $0.3 million and $1.3 million, respectively, related to this activity, and for the three and six month periods ended June 30, 2022, MasTec paid approximately $0.7 million and $1.7 million, respectively. Amounts payable to CCI totaled approximately $0.6 million as of both June 30, 2023 and December 31, 2022. 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 both the three and six month periods ended June 30, 2023, MasTec incurred subcontracting expenses in connection with this arrangement of approximately $0.4 million, and for both the three and six month periods ended June 30, 2022, subcontracting expenses totaled approximately $0.1 million. Related amounts payable totaled approximately $0.3 million as of June 30, 2023, and as of December 31, 2022, such payables were de minimis. MasTec has a leasing arrangement for an aircraft that is owned by an entity that Jorge Mas owns. For the three month periods ended June 30, 2023 and 2022, MasTec paid approximately $0.7 million and $0.6 million, respectively, related to this leasing arrangement, and for the six month periods ended June 30, 2023 and 2022, MasTec paid approximately $1.4 million and $1.3 million, respectively. MasTec has performed construction services on behalf of a professional Miami soccer franchise (the “Franchise”) in which Jorge Mas and José R. Mas are majority owners. Services provided by MasTec have included the construction of a soccer facility and stadium as well as wireless infrastructure services. MasTec expects to perform additional construction services for the Franchise beginning in the second half of 2023. For the three and six month periods ended June 30, 2023, MasTec charged approximately $0.1 million and $0.2 million, respectively under these arrangements, and related amounts receivable totaled approximately $0.2 million as of June 30, 2023. Payments for other expenses related to the Franchise for both the three month periods ended June 30, 2023 and 2022 totaled approximately $0.2 million, and for the six month periods ended June 30, 2023 and 2022, totaled approximately $0.6 million and $0.3 million, respectively. MasTec has a subcontracting arrangement to perform construction services for an entity, in which José R. Mas has a minority interest, and of which a member of management of a MasTec subsidiary owns the remaining interest. For the three month periods ended June 30, 2023 and 2022, revenue recognized by MasTec under this arrangement totaled approximately $36.1 million and $31.9 million, respectively, and totaled approximately $77.9 million and $60.7 million, respectively, for the six month periods ended June 30, 2023 and 2022. As of June 30, 2023 and December 31, 2022, related amounts receivable totaled approximately $50.4 million and $42.0 million, respectively. MasTec pays a management fee to this entity in connection with the subcontracting arrangement, under which MasTec incurred approximately $0.7 million and $0.5 million for the three month periods ended June 30, 2023 and 2022, respectively, and totaled approximately $1.2 million and $0.7 million, respectively, for the six month periods ended June 30, 2023 and 2022. As of June 30, 2023 and December 31, 2022, related amounts payable totaled approximately $0.1 million and $0.3 million, respectively. From time to time, the Company advances amounts to the former owners of acquired businesses, which, under the provisions of the related purchase agreements, the former owners are obligated to repay. The Company made no advances for the three month period ended June 30, 2023, and for the three month period ended June 30, 2022, such advances totaled approximately $0.1 million. For the six month periods ended June 30, 2023 and 2022, such advances totaled approximately $0.1 million and $1.4 million, respectively. A mounts receivable for such advances totaled approximately $2.1 million and $2.0 million as of June 30, 2023 and December 31, 2022, respectively. In addition, the Company has a subcontracting arrangement with an entity in which it has a 25% interest. The Company’s interest in this entity is accounted for as an equity method investment. For both the three and six month periods ended June 30, 2023, the Company made equity contributions of approximately $3.6 million to this entity, of which $0.2 million was paid in cash. The Company made no equity contributions for the three month period ended June 30, 2022, and for the six month period ended June 30, 2022 equity contributions totaled approximately $0.5 million. As of June 30, 2023 and December 31, 2022, the Company’s net investment in this entity was a liability of approximately $0.1 million and $0.2 million, respectively, which net amount included approximately $1.1 million of deferred revenue as of June 30, 2023, and $2.3 million of accounts receivable, net, less deferred revenue as of December 31, 2022, related to the subcontracting arrangement as of the respective periods. Additionally, the Company has certain arrangements with an entity in which members of management have an ownership interest, including a fee arrangement in conjunction with a $15.0 million le tter of credit issued by the Company on behalf of this entity. Income recognized in connection with these arrangements totaled approximately $0.2 million for both the three month periods ended June 30, 2023 and 2022, and totaled approximately $0.4 million for both the six month periods ended June 30, 2023 and 2022. As of both June 30, 2023 and December 31, 2022, related amounts receivable totaled $0.4 million. In 2018, the Company acquired a construction management firm specializing in steel building systems, of which Juan Carlos Mas was a minority owner at the time of acquisition. In the second quarter of 2023, the Company paid $16.1 million of contingent consideration in connection with the finalization of the earn-out arrangement related to this acquisition, as calculated under the terms of the purchase agreement. Approximately 25% of this earn-out payment was paid to Juan Carlos Mas, consistent with the terms of the purchase agreement. 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, including the ownership interests in two entities that the Company acquired in the second quarter of 2023. See Note 3 - Acquisitions, Goodwill and Other Intangible Assets, Net for additional information. In the first quarter of 2023, the Company acquired the remaining 15% equity interests of the non-controlling interests in one of these entities from two members of subsidiary management for $10.0 million in cash, plus 120,000 shares of MasTec common stock, valued at approximately $11.6 million. Split Dollar Agreements MasTec has split dollar life insurance agreements with trusts, for one of which Jorge Mas is a trustee, and for the other of which José R. Mas is a trustee. The Company paid $0.5 million and $0.7 million, respectively, in the second quarters of 2023 and 2022 in connection with these agreements. As of June 30, 2023 and December 31, 2022, life insurance assets associated with these agreements totaled approximately $27.1 million and $25.8 million, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 15,542 | $ 16,212 | $ (64,998) | $ (18,766) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business, Basis of Presentati_2
Business, Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2022 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, 2022 contained in the Company’s 2022 Annual Report on Form 10-K (the “2022 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 appropriate, prior year amounts are reclassified to conform with 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 appropriate, prior year amounts are reclassified to conform with 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, except for mandatorily redeemable non-controlling interests, which are recorded within other liabilities. Net income or loss attributable to non-controlling interests is reported as a separate line item below net income or loss. Investments in entities for which the Company does not have a controlling financial interest, but over which it has the ability to exert significant influence, are accounted for under 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 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 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. For foreign operations for which the local currency is not the functional currency, the operation’s non-monetary assets are remeasured into U.S. dollars at historical exchange rates. All other accounts are remeasured at current exchange rates. Gains or losses from remeasurement are included in other income or expense, net. Currency gains or losses resulting from transactions executed in currencies other than the functional currency are included in other income or expense, net. |
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 that management believes to be reasonable under the circumstances, including the potential future effects of macroeconomic trends and events, such as inflation and interest rate levels; uncertainty from potential market volatility; supply chain disruptions; climate-related matters; other market, industry and regulatory factors, including permitting issues; global events, such as military conflicts; and public health matters. These estimates form the basis for making judgments about the Company’s operating results and the carrying values of assets and liabilities that are not readily apparent from other sources. 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 these estimates. 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 |
General Economic, Market and Regulatory Conditions | General Economic, Market and Regulatory Conditions The Company has experienced, and may continue to experience, direct and indirect negative effects on its business and operations from negative economic, market, and regulatory conditions, including permitting issues, market interest rates, inflationary effects on fuel prices, labor and materials costs, supply chain disruptions, and uncertainty from potential market volatility that could negatively affect demand for future projects and/or delay existing project timing or cause increased project costs. The extent to which general economic, market and regulatory conditions could affect the Company’s business, operations and financial results is uncertain as it will depend upon numerous evolving factors that management may not be able to accurately predict, and, therefore, any future impacts on the Company’s business, financial condition and/or results of operations cannot be quantified or predicted with specificity. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from contracts with customers when, or as, control of promised services and goods is transferred to customers. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for the services and goods transferred. The Company primarily recognizes revenue 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 service and other service agreements, which generally 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 43% and 54% of consolidated revenue for the three month periods ended June 30, 2023 and 2022, respectively, and totaled 45% and 56% for the six month periods ended June 30, 2023 and 2022, respectively. For certain master service and other service agreements, revenue is recognized at a point in time, primarily for install-to-the-home and certain other wireless services in the Company’s Communications segment, and to a lesser extent, certain revenue in the Company’s Clean Energy and Infrastructure and Oil and Gas segments. Point in time revenue is recognized when the work order has been fulfilled, which, for the majority of the Company’s point in time revenue, is the same day it is initiated. Point in time revenue accounted for approximately 3% of consolidated revenue for both the three and six month periods ended June 30, 2023, and totaled approximately 4% for both the three and six month periods ended June 30, 2022. The total contract transaction price and cost estimation processes used 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, operational 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 revisions 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 the six month periods ended June 30, 2023 and 2022, 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, 2022 and 2021. Changes in recognized revenue, net, as a result of changes in total contract transaction price estimates, including from variable consideration, and/or changes in cost estimates, related to performance obligations satisfied or partially satisfied in prior periods, for the three month period ended June 30, 2023 positively affected revenue by approximately 1.5%, and for the three month period ended June 30, 2022, there was no net effect. For the six month periods ended June 30, 2023 and 2022, such net changes positively affected revenue by approximately 0.6% and 0.2%, respectively. Performance Obligations. A performance obligation is a contractual promise to transfer a distinct good or service to a customer. 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 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 June 30, 2023, the amount of the Company’s remaining performance obligations was $8.0 billion. Based on current expectations, the Company anticipates it will recognize approximately $4.6 billion of its remaining performance obligations as revenue during 2023, with the majority of the remaining balance expected to be recognized in 2024. 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 specific discussions, correspondence or preliminary negotiations and past practices with the customer, engineering studies and legal advice 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 June 30, 2023 and December 31, 2022, the Company included in its contract transaction prices approximately $317 million and $271 million, respectively, of change orders and/or claims 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, when earned, are included within contract assets or accounts receivable, net of allowance, as appropriate. As of both June 30, 2023 and December 31, 2022, these change orders and/or claims primarily related to certain projects in the Company’s Clean Energy and Infrastructure and Power Delivery segments and include amounts related to recently acquired businesses. 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 agreement by customers could be higher or lower than such estimated amounts. |
Recently Issued Accounting Pronouncements | Recent Accounting Pronouncements The discussion below describes the effects of recent accounting pronouncements, as updated from the discussion in the Company’s 2022 Form 10-K. Accounting Pronouncements Adopted in 2023 In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”) to improve consistency for revenue recognition in the post-acquisition period for acquired contracts as compared to contracts entered into subsequent to acquisition. ASU 2021-08 requires an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers, rather than at fair value. ASU 2021-08, which the Company adopted in the first quarter of 2023, did not have a material effect on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements (“ASU 2023-01”) to improve the guidance for applying Topic 842, Leases, to arrangements between entities under common control. ASU 2023-01 improves current GAAP by clarifying the accounting for leasehold improvements associated with common control leases, thereby reducing diversity in practice. The provisions of this ASU that apply to public companies include a requirement for entities to amortize leasehold improvements associated with common control leases over the useful life of the common control group. ASU 2023-01 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the effects of this ASU, however, this ASU is not expected to have a material effect on the Company’s consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table provides details underlying the Company’s earnings per share calculations for the periods indicated (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net income (loss) attributable to MasTec: Net income (loss) - basic (a) $ 15,542 $ 16,212 $ (64,998) $ (18,766) Fair value gain related to resolved contingent payments (b) $ — $ 1,025 $ — $ 1,025 Net income (loss) - diluted (a) $ 15,542 $ 15,187 $ (64,998) $ (19,791) Weighted average shares outstanding: Weighted average shares outstanding - basic (c) 77,635 74,445 77,306 74,615 Dilutive common stock equivalents (d)(e) 737 1,092 — 32 Weighted average shares outstanding - diluted 78,372 75,537 77,306 74,647 (a) Basic net income or loss is calculated as total net income or loss, less amounts attributable to non-controlling interests. Diluted net income or loss is calculated as total net income or loss, less amounts attributable to non-controlling interests, adjusted for the fair value gain or loss, if any, related to additional contingent payments to the former owners of an acquired business for which the contingency has been resolved as of the respective period. See Note 3 - Acquisitions, Goodwill and Other Intangible Assets, Net, for additional information. (b) For the three and six month periods ended June 30, 2022, represents the fair value gain related to additional contingent payments for which the contingency had been resolved as of June 30, 2022. See Note 3 – Acquisitions, Goodwill and Other Intangible Assets, Net for additional information. (c) For the three month periods ended June 30, 2023 and 2022, basic shares include approximately 88,000 and 132,000 weighted average shares, respectively, related to additional contingent payments, and for the six month periods ended June 30, 2023 and 2022, basic shares include approximately 88,000 and 101,000 of such weighted average shares, respectively. (d) For the three month periods ended June 30, 2023, and 2022, weighted average anti-dilutive common stock equivalents totaled approximately 2,000 and 178,000 shares, respectively, and for the six month periods ended June 30, 2023 and 2022, such shares totaled approximately 1,147,000 and 1,273,000, respectively. (e) For the three and six month periods ended June 30, 2023, weighted average common stock equivalents related to additional contingent payments to the former owners of an acquired business, which shares were anti-dilutive, were de minimis, and for the three and six month periods ended June 30, 2022, weighted average common stock equivalents related to such additional contingent payments, which shares were dilutive, totaled approximately 1,000 and 32,000, respectively. |
Acquisitions, Goodwill, and O_2
Acquisitions, Goodwill, and Other Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Segment | The following table provides a reconciliation of changes in goodwill by reportable segment for the six month period ended June 30, 2023 (in millions): Communications Clean Energy and Infrastructure Oil and Gas Power Delivery Total Goodwill Goodwill, gross, as of December 31, 2022 $ 606.1 $ 703.3 $ 582.2 $ 270.1 $ 2,161.7 Accumulated impairment loss (a) — — (116.7) — (116.7) Goodwill, net, as of December 31, 2022 $ 606.1 $ 703.3 $ 465.5 $ 270.1 $ 2,045.0 Additions from new business combinations 9.5 — — — 9.5 Measurement period adjustments (b) (0.6) 23.8 0.9 0.6 24.7 Currency translation adjustments — — 0.3 — 0.3 Goodwill, net as of June 30, 2023 $ 615.0 $ 727.1 $ 466.7 $ 270.7 $ 2,079.5 (a) Accumulated impairment losses include the effects of currency translation gains and/or losses. (b) Measurement period adjustments represent adjustments, net, to preliminary estimates of fair value within the measurement period of up to one year from the date of acquisition. Measurement period adjustments, net, for the six month period ended June 30, 2023 were primarily the result of updated valuations of certain fixed assets and updated estimates of certain assets and liabilities, including contract assets and liabilities. As a result of certain of these adjustments, depreciation expense decreased by approximately $6 million, revenue increased by approximately $13 million and costs of revenue, excluding depreciation and amortization decreased by approximately $3 million. |
Schedule of Finite-Lived Intangible Assets | The following table provides a reconciliation of changes in other intangible assets, net, for the period indicated (in millions): Other Intangible Assets, Net Customer Relationships and Backlog Trade Names (a) Other (b) Total Other intangible assets, gross, as of December 31, 2022 $ 1,089.4 $ 228.9 $ 86.6 $ 1,404.9 Accumulated amortization (388.8) (28.9) (40.9) (458.6) Other intangible assets, net, as of December 31, 2022 $ 700.6 $ 200.0 $ 45.7 $ 946.3 Currency translation adjustments — — 0.5 0.5 Amortization expense (69.7) (10.1) (4.2) (84.0) Other intangible assets, net, as of June 30, 2023 $ 630.9 $ 189.9 $ 42.0 $ 862.8 (a) Includes approximately $34.5 million of non-amortizing trade names as of both June 30, 2023 and December 31, 2022. (b) Consists principally of pre-qualifications and non-compete agreements. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Determination of the estimated fair values of the net assets acquired and the estimated earn-out liabilities and consideration transferred for three of the Company’s 2022 acquisitions was preliminary as of June 30, 2023 while the Company finalizes certain working capital and other valuation and contingency-related estimates; as a result, further adjustments to such estimates may occur. The following table summarizes, as of June 30, 2023, the estimated fair values of the consideration paid and net assets acquired, as adjusted, for the Company’s 2022 acquisitions (in millions): Acquisition consideration: IEA All other Total Cash, net of cash acquired $ 564.5 $ 48.4 $ 612.9 Shares transferred 173.7 — 173.7 Estimated fair value of warrants 10.3 — 10.3 Estimated fair value of contingent consideration — 2.8 2.8 Total consideration $ 748.5 $ 51.2 $ 799.7 Identifiable assets acquired and liabilities assumed: Accounts receivable and contract assets $ 585.7 $ 6.1 $ 591.8 Current assets 36.1 1.5 37.6 Property and equipment 213.0 30.1 243.1 Long-term assets, primarily operating lease right-of-use assets 40.6 0.3 40.9 Amortizing intangible assets 362.2 5.9 368.1 Accounts payable (136.5) (4.6) (141.1) Current liabilities, including current portion of operating lease liabilities (444.6) (2.9) (447.5) Long-term debt, including finance lease obligations (330.8) (0.2) (331.0) Long-term liabilities, primarily operating lease liabilities and deferred income taxes (131.4) (0.2) (131.6) Total identifiable net assets $ 194.3 $ 36.0 $ 230.3 Goodwill 554.2 15.2 569.4 Total net assets acquired, including goodwill $ 748.5 $ 51.2 $ 799.7 |
Accounts Receivable, Net of A_2
Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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): June 30, December 31, Contract billings $ 1,492.2 $ 1,408.1 Less allowance (7.0) (8.4) Accounts receivable, net of allowance $ 1,485.2 $ 1,399.7 Retainage 353.9 401.9 Unbilled receivables 1,496.8 1,328.0 Contract assets $ 1,850.7 $ 1,729.9 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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): June 30, December 31, Land $ 73.6 $ 73.5 Buildings and leasehold improvements 91.0 86.7 Machinery, equipment and vehicles 2,957.5 2,797.0 Office equipment, furniture and internal-use software 315.4 286.8 Construction in progress 52.9 67.4 Total property and equipment $ 3,490.4 $ 3,311.4 Less accumulated depreciation and amortization (1,736.7) (1,557.3) Property and equipment, net $ 1,753.7 $ 1,754.1 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, December 31, Senior credit facility: November 1, 2026 Revolving loans $ 1,007.0 $ 896.0 Term loan 345.6 350.0 4.50% Senior Notes August 15, 2028 600.0 600.0 6.625% Senior Notes August 15, 2029 282.8 281.2 2022 Term Loan Facility October 7, 2025 and October 7, 2027 700.0 700.0 Finance lease and other obligations 404.1 414.5 Total debt obligations $ 3,339.5 $ 3,241.7 Less unamortized deferred financing costs (15.6) (17.6) Total debt, net of deferred financing costs $ 3,323.9 $ 3,224.1 Current portion of long-term debt 169.3 171.9 Long-term debt $ 3,154.6 $ 3,052.2 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Commitments, Finance Leases | Future minimum lease commitments as of June 30, 2023 were as follows (in millions): Finance Leases Operating 2023, remaining six months $ 85.1 $ 64.6 2024 141.5 113.3 2025 104.8 88.4 2026 47.7 59.0 2027 10.9 27.6 Thereafter 1.8 34.4 Total minimum lease payments $ 391.8 $ 387.3 Less amounts representing interest (24.3) (33.7) Total lease obligations, net of interest $ 367.5 $ 353.6 Less current portion 144.9 117.6 Long-term portion of lease obligations, net of interest $ 222.6 $ 236.0 |
Schedule of Future Minimum Lease Commitments, Operating Leases | Future minimum lease commitments as of June 30, 2023 were as follows (in millions): Finance Leases Operating 2023, remaining six months $ 85.1 $ 64.6 2024 141.5 113.3 2025 104.8 88.4 2026 47.7 59.0 2027 10.9 27.6 Thereafter 1.8 34.4 Total minimum lease payments $ 391.8 $ 387.3 Less amounts representing interest (24.3) (33.7) Total lease obligations, net of interest $ 367.5 $ 353.6 Less current portion 144.9 117.6 Long-term portion of lease obligations, net of interest $ 222.6 $ 236.0 |
Stock-Based Compensation and _2
Stock-Based Compensation and Other Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2022 2,049,280 $ 52.33 Granted 201,511 96.02 Vested (852,492) 27.68 Canceled/forfeited (30,072) 47.30 Non-vested restricted shares, as of June 30, 2023 1,368,227 $ 74.24 (a) Includes 1,000 and 2,150 restricted stock units as of June 30, 2023 and December 31, 2022, respectively. |
Other Retirement Plans (Tables)
Other Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Covered Employees and Contributions, Multiemployer Plans | Total contributions to multiemployer plans and the related number of employees covered by these plans 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 June 30: 2023 7,581 7,727 $ 21.3 $ 16.5 $ 37.8 2022 6,672 7,136 $ 22.3 $ 13.9 $ 36.2 For the Six Months Ended June 30: 2023 6,806 7,727 $ 43.1 $ 29.9 $ 73.0 2022 6,601 7,136 $ 39.3 $ 27.1 $ 66.4 |
Segments and Related Informat_2
Segments and Related Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Reportable Segment | For the Three Months Ended June 30, For the Six Months Ended June 30, Revenue: 2023 2022 2023 2022 Communications (a) $ 868.7 $ 822.0 $ 1,675.2 $ 1,486.2 Clean Energy and Infrastructure 969.7 494.5 1,794.6 930.4 Oil and Gas 341.8 341.2 598.3 552.2 Power Delivery 702.6 646.5 1,412.0 1,296.9 Other — — — — Eliminations (8.7) (2.4) (21.3) (9.5) Consolidated revenue $ 2,874.1 $ 2,301.8 $ 5,458.8 $ 4,256.2 (a) Revenue generated primarily by utilities customers represented 23.6% and 24.1% of Communications segment revenue for the three month periods ended June 30, 2023 and 2022, respectively, and represented 23.6% and 24.8% for the six month periods ended June 30, 2023 and 2022, respectively. For the Three Months Ended June 30, For the Six Months Ended June 30, EBITDA: 2023 2022 2023 2022 Communications $ 89.5 $ 84.2 $ 142.3 $ 124.6 Clean Energy and Infrastructure 33.2 (5.2) 38.5 5.6 Oil and Gas 77.0 62.8 91.5 84.2 Power Delivery 57.1 41.4 104.5 87.5 Other 6.8 7.4 13.9 14.4 Segment EBITDA $ 263.6 $ 190.6 $ 390.7 $ 316.3 For the Three Months Ended June 30, For the Six Months Ended June 30, Depreciation and Amortization: 2023 2022 2023 2022 Communications $ 34.0 $ 30.7 $ 68.6 $ 59.7 Clean Energy and Infrastructure 31.7 11.7 70.1 23.1 Oil and Gas 36.6 32.2 70.9 63.8 Power Delivery 40.2 36.8 79.4 72.5 Other — — — — Corporate 2.6 3.3 5.3 6.4 Consolidated depreciation and amortization $ 145.1 $ 114.7 $ 294.3 $ 225.5 Assets: June 30, December 31, Communications $ 2,495.2 $ 2,378.6 Clean Energy and Infrastructure 2,819.6 2,979.9 Oil and Gas 1,692.1 1,544.2 Power Delivery 1,856.8 1,967.9 Other 307.6 297.3 Corporate 116.5 125.4 Consolidated assets $ 9,287.8 $ 9,293.3 |
Reconciliation of Consolidated Income before Income Taxes to EBITDA | For the Three Months Ended June 30, For the Six Months Ended June 30, EBITDA Reconciliation: 2023 2022 2023 2022 Income (loss) before income taxes $ 19.7 $ 18.2 $ (105.6) $ (29.9) Plus: Interest expense, net 59.4 19.4 112.1 35.4 Depreciation 103.0 87.0 210.3 172.2 Amortization 42.0 27.7 84.0 53.3 Corporate EBITDA 39.4 38.3 89.9 85.3 Segment EBITDA $ 263.6 $ 190.6 $ 390.7 $ 316.3 |
Business, Basis of Presentati_3
Business, Basis of Presentation and Significant Accounting Policies - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 5 |
Business, Basis of Presentati_4
Business, Basis of Presentation and Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Revenue [Line Items] | |||||
Revenue recognition, changes In contract estimates, cost-to-cost method, financial effect, percentage (less than) | 1.50% | 0% | 0.60% | 0.20% | |
Revenue recognition, remaining performance obligations, contract price allocated | $ 8,000 | $ 8,000 | |||
Contract with customer, unapproved change orders and/or claims, amount | $ 317 | $ 317 | $ 271 | ||
Maximum | |||||
Revenue [Line Items] | |||||
Revenue recognition, changes In contract estimates, cost-to-cost method, financial effect, percentage (less than) | 5% | 5% | |||
Change order or claim approval process, term within which expected to be completed | 1 year | ||||
Revenue Benchmark | Concentration Risk from Type of Arrangement | Master Service and Other Service Agreements | |||||
Revenue [Line Items] | |||||
Concentration risk, percentage of total | 43% | 54% | 45% | 56% | |
Revenue Benchmark | Concentration Risk from Type of Arrangement | Master Service and Other Service Agreements | Point in Time | |||||
Revenue [Line Items] | |||||
Concentration risk, percentage of total | 3% | 4% | 3% | 4% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |||||
Revenue [Line Items] | |||||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |||||
Revenue [Line Items] | |||||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 months | 6 months | |||
Revenue recognition, remaining performance obligations, contract price allocated | $ 4,600 | $ 4,600 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net income (loss) attributable to MasTec: | ||||
Net income (loss) - basic | $ 15,542 | $ 16,212 | $ (64,998) | $ (18,766) |
Fair value gain related to resolved contingent payments | 0 | 1,025 | 0 | 1,025 |
Net income (loss) - diluted | $ 15,542 | $ 15,187 | $ (64,998) | $ (19,791) |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding - basic (in shares) | 77,635 | 74,445 | 77,306 | 74,615 |
Dilutive common stock equivalents (in shares) | 737 | 1,092 | 0 | 32 |
Weighted average shares outstanding - diluted (in shares) | 78,372 | 75,537 | 77,306 | 74,647 |
Anti-dilutive common stock (in shares) | 2 | 178 | 1,147 | 1,273 |
Former Owner Of Acquired Business | ||||
Weighted average shares outstanding: | ||||
Weighted average shares outstanding - basic (in shares) | 88 | 132 | 88 | 101 |
Dilutive common stock equivalents (in shares) | 1 | 32 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | |||||
Treasury stock acquired (in shares) | 0 | 936,000 | 0 | 1,124,000 | |
Repurchase effect on weighted average shares outstanding, decrease (in shares) | 554,000,000,000 | 330,000,000,000 | |||
2022 Acquisitions, IEA | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, number of shares issued (in shares) | 2,758,000 | ||||
HMG | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, number of shares issued (in shares) | 133,000 |
Acquisitions, Goodwill, and O_3
Acquisitions, Goodwill, and Other Intangible Assets, Net - Rollforward of Goodwill by Segment (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Goodwill [Line Items] | ||
Goodwill | $ 2,161,700 | |
Accumulated impairment loss | (116,700) | |
Goodwill, net | $ 2,079,522 | 2,045,041 |
Goodwill [Roll Forward] | ||
Goodwill, net, beginning balance | 2,045,041 | |
Additions from new business combinations | 9,500 | |
Goodwill, measurement period adjustments | 24,700 | |
Currency translation adjustments | 300 | |
Goodwill, net, ending balance | 2,079,522 | |
Depreciation Expense | ||
Goodwill [Roll Forward] | ||
Goodwill, measurement period adjustments | (6,000) | |
Revenues | ||
Goodwill [Roll Forward] | ||
Goodwill, measurement period adjustments | 13,000 | |
Cost of Goods and Service, Excluding Depreciation, Depletion, and Amortization | ||
Goodwill [Roll Forward] | ||
Goodwill, measurement period adjustments | (3,000) | |
Communications | ||
Goodwill [Line Items] | ||
Goodwill | 606,100 | |
Accumulated impairment loss | 0 | |
Goodwill, net | 615,000 | 606,100 |
Goodwill [Roll Forward] | ||
Goodwill, net, beginning balance | 606,100 | |
Additions from new business combinations | 9,500 | |
Goodwill, measurement period adjustments | (600) | |
Currency translation adjustments | 0 | |
Goodwill, net, ending balance | 615,000 | |
Clean Energy and Infrastructure | ||
Goodwill [Line Items] | ||
Goodwill | 703,300 | |
Accumulated impairment loss | 0 | |
Goodwill, net | 727,100 | 703,300 |
Goodwill [Roll Forward] | ||
Goodwill, net, beginning balance | 703,300 | |
Additions from new business combinations | 0 | |
Goodwill, measurement period adjustments | 23,800 | |
Currency translation adjustments | 0 | |
Goodwill, net, ending balance | 727,100 | |
Oil and Gas | ||
Goodwill [Line Items] | ||
Goodwill | 582,200 | |
Accumulated impairment loss | (116,700) | |
Goodwill, net | 466,700 | 465,500 |
Goodwill [Roll Forward] | ||
Goodwill, net, beginning balance | 465,500 | |
Additions from new business combinations | 0 | |
Goodwill, measurement period adjustments | 900 | |
Currency translation adjustments | 300 | |
Goodwill, net, ending balance | 466,700 | |
Power Delivery | ||
Goodwill [Line Items] | ||
Goodwill | 270,100 | |
Accumulated impairment loss | 0 | |
Goodwill, net | 270,700 | $ 270,100 |
Goodwill [Roll Forward] | ||
Goodwill, net, beginning balance | 270,100 | |
Additions from new business combinations | 0 | |
Goodwill, measurement period adjustments | 600 | |
Currency translation adjustments | 0 | |
Goodwill, net, ending balance | $ 270,700 |
Acquisitions, Goodwill, and O_4
Acquisitions, Goodwill, and Other Intangible Assets, Net - Rollforward of Other Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Other Intangible Assets [Line Items] | ||
Other intangible assets, gross | $ 1,404,900 | |
Accumulated amortization | (458,600) | |
Other Intangible Assets [Rollforward] | ||
Other intangible assets, net, beginning balance | $ 946,299 | |
Currency translation adjustments | 500 | |
Amortization expense | (84,000) | |
Other intangible assets, net, ending balance | 862,775 | |
Customer Relationships and Backlog | ||
Other Intangible Assets [Line Items] | ||
Other intangible assets, gross | 1,089,400 | |
Accumulated amortization | (388,800) | |
Other Intangible Assets [Rollforward] | ||
Other intangible assets, net, beginning balance | 700,600 | |
Currency translation adjustments | 0 | |
Amortization expense | (69,700) | |
Other intangible assets, net, ending balance | 630,900 | |
Trade Names | ||
Other Intangible Assets [Line Items] | ||
Other intangible assets, gross | 228,900 | |
Accumulated amortization | (28,900) | |
Other Intangible Assets [Rollforward] | ||
Other intangible assets, net, beginning balance | 200,000 | |
Currency translation adjustments | 0 | |
Amortization expense | (10,100) | |
Other intangible assets, net, ending balance | 189,900 | |
Other | ||
Other Intangible Assets [Line Items] | ||
Other intangible assets, gross | 86,600 | |
Accumulated amortization | (40,900) | |
Other Intangible Assets [Rollforward] | ||
Other intangible assets, net, beginning balance | 45,700 | |
Currency translation adjustments | 500 | |
Amortization expense | (4,200) | |
Other intangible assets, net, ending balance | 42,000 | |
Trade Names | ||
Other Intangible Assets [Rollforward] | ||
Other intangible assets, non-amortizing | $ 34,500 | $ 34,500 |
Acquisitions, Goodwill, and O_5
Acquisitions, Goodwill, and Other Intangible Assets, Net - Quarterly Assessment for Indicators of Impairment - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 reporting_unit | |
Clean Energy and Infrastructure | |
Goodwill [Line Items] | |
Number of reporting units | 1 |
Acquisitions, Goodwill, and O_6
Acquisitions, Goodwill, and Other Intangible Assets, Net - Acquisitions - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
May 31, 2022 shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) yr acquisition shares | |
Business Acquisition [Line Items] | ||||||
Cash paid for acquisitions, net of cash acquired | $ 63,880 | $ 44,908 | ||||
Fair value gain related to resolved contingent payments | $ 0 | $ 1,025 | $ 0 | 1,025 | ||
Equipment Company Acquisition One | ||||||
Business Acquisition [Line Items] | ||||||
Variable interest entity, percent | 68% | |||||
Equipment Company Acquisition Two | ||||||
Business Acquisition [Line Items] | ||||||
Variable interest entity, percent | 42% | |||||
6.625% Senior Notes | Senior Notes | ||||||
Business Acquisition [Line Items] | ||||||
Debt instrument, interest rate (percentage) | 6.625% | 6.625% | ||||
2023 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for acquisitions, net of cash acquired | $ 62,000 | |||||
Business combinations, number of acquisitions | acquisition | 2 | |||||
Business acquisition, number of shares issued (in shares) | shares | 120,000 | |||||
2022 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for acquisitions, net of cash acquired | $ 612,900 | |||||
Business combinations, number of acquisitions | acquisition | 5 | |||||
Amortizing intangible assets | $ 368,100 | 368,100 | ||||
Business acquisition, goodwill, expected tax deductible amount | 38,000 | 38,000 | ||||
Estimated fair value of contingent consideration | 2,800 | 2,800 | $ 3,000 | |||
Acquisition-related contingent consideration liabilities, range of potential undiscounted earn-out liabilities, high | 4,000 | 4,000 | ||||
2022 Acquisitions | Expected Term | ||||||
Business Acquisition [Line Items] | ||||||
Business combinations, contingent consideration, earn-out period (in years) | yr | 5 | |||||
IEA | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for acquisitions, net of cash acquired | 564,500 | |||||
Amortizing intangible assets | 362,200 | 362,200 | ||||
Amortizing intangible assets, weighted average useful life | 13 years | |||||
Equity interest issued, number of shares | shares | 2,700,000 | |||||
Business acquisition, equity interest issued or issuable, value assigned | $ 174,000 | |||||
Cash acquired from acquisition | 44,000 | |||||
Fair value of warrants outstanding | 3,100 | |||||
Estimated fair value of contingent consideration | 0 | 0 | ||||
IEA | Infrastructure Energy Alternatives, Inc. Warrants | ||||||
Business Acquisition [Line Items] | ||||||
Fair value gain related to resolved contingent payments | 2,600 | |||||
IEA | 6.625% Senior Notes | Senior Notes | ||||||
Business Acquisition [Line Items] | ||||||
Debt assumed in acquisition | 300,000 | |||||
IEA | Trade Names and Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Amortizing intangible assets | $ 321,000 | |||||
IEA | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Amortizing intangible assets, weighted average useful life | 14 years | |||||
IEA | Trade Names | ||||||
Business Acquisition [Line Items] | ||||||
Amortizing intangible assets, weighted average useful life | 14 years | |||||
IEA | Backlog | ||||||
Business Acquisition [Line Items] | ||||||
Amortizing intangible assets | $ 42,000 | |||||
Amortizing intangible assets, weighted average useful life | 1 year | |||||
All other | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for acquisitions, net of cash acquired | 48,400 | |||||
Amortizing intangible assets | 5,900 | 5,900 | ||||
Amortizing intangible assets, weighted average useful life | 9 years | |||||
Estimated fair value of contingent consideration | 2,800 | 2,800 | ||||
HMG | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, number of shares issued (in shares) | shares | 133,000 | |||||
HMG | Contingent Consideration, Value Of Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Unrealized gain (loss) included in other income | (3,800) | $ 3,200 | (5,400) | $ 3,200 | ||
Reduction in unrealized gain (loss) from changes in collections attributed to acquired balances | $ 2,400 | |||||
Business acquisition, number of shares issued (in shares) | shares | 133,157 | 160,000 | 170,000 | |||
HMG | Contingent Consideration, Collections From Acquired Receivables | ||||||
Business Acquisition [Line Items] | ||||||
Estimated fair value of contingent consideration | $ 19,400 | $ 19,400 | ||||
Unrealized gain (loss) included in other income | $ 10,400 | |||||
Business acquisition, number of shares issued (in shares) | shares | 87,900 |
Acquisitions, Goodwill, and O_7
Acquisitions, Goodwill, and Other Intangible Assets, Net - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Acquisition consideration: | |||
Cash, net of cash acquired | $ 63,880 | $ 44,908 | |
Identifiable assets acquired and liabilities assumed: | |||
Goodwill | 2,079,522 | $ 2,045,041 | |
IEA | |||
Acquisition consideration: | |||
Cash, net of cash acquired | 564,500 | ||
Shares transferred | 173,700 | ||
Estimated fair value of warrants | 10,300 | ||
Estimated fair value of contingent consideration | 0 | ||
Total consideration | 748,500 | ||
Identifiable assets acquired and liabilities assumed: | |||
Accounts receivable and contract assets | 585,700 | ||
Current assets | 36,100 | ||
Property and equipment | 213,000 | ||
Long-term assets, primarily operating lease right-of-use assets | 40,600 | ||
Amortizing intangible assets | 362,200 | ||
Accounts payable | (136,500) | ||
Current liabilities, including current portion of operating lease liabilities | (444,600) | ||
Long-term debt, including finance lease obligations | (330,800) | ||
Long-term liabilities, primarily operating lease liabilities and deferred income taxes | (131,400) | ||
Total identifiable net assets | 194,300 | ||
Goodwill | 554,200 | ||
Total net assets acquired, including goodwill | 748,500 | ||
All other | |||
Acquisition consideration: | |||
Cash, net of cash acquired | 48,400 | ||
Shares transferred | 0 | ||
Estimated fair value of warrants | 0 | ||
Estimated fair value of contingent consideration | 2,800 | ||
Total consideration | 51,200 | ||
Identifiable assets acquired and liabilities assumed: | |||
Accounts receivable and contract assets | 6,100 | ||
Current assets | 1,500 | ||
Property and equipment | 30,100 | ||
Long-term assets, primarily operating lease right-of-use assets | 300 | ||
Amortizing intangible assets | 5,900 | ||
Accounts payable | (4,600) | ||
Current liabilities, including current portion of operating lease liabilities | (2,900) | ||
Long-term debt, including finance lease obligations | (200) | ||
Long-term liabilities, primarily operating lease liabilities and deferred income taxes | (200) | ||
Total identifiable net assets | 36,000 | ||
Goodwill | 15,200 | ||
Total net assets acquired, including goodwill | 51,200 | ||
2022 Acquisitions | |||
Acquisition consideration: | |||
Cash, net of cash acquired | 612,900 | ||
Shares transferred | 173,700 | ||
Estimated fair value of warrants | 10,300 | ||
Estimated fair value of contingent consideration | 2,800 | $ 3,000 | |
Total consideration | 799,700 | ||
Identifiable assets acquired and liabilities assumed: | |||
Accounts receivable and contract assets | 591,800 | ||
Current assets | 37,600 | ||
Property and equipment | 243,100 | ||
Long-term assets, primarily operating lease right-of-use assets | 40,900 | ||
Amortizing intangible assets | 368,100 | ||
Accounts payable | (141,100) | ||
Current liabilities, including current portion of operating lease liabilities | (447,500) | ||
Long-term debt, including finance lease obligations | (331,000) | ||
Long-term liabilities, primarily operating lease liabilities and deferred income taxes | (131,600) | ||
Total identifiable net assets | 230,300 | ||
Goodwill | 569,400 | ||
Total net assets acquired, including goodwill | $ 799,700 |
Acquisitions, Goodwill, and O_8
Acquisitions, Goodwill, and Other Intangible Assets, Net - HMG Additional Payments, Pro Forma Financial Information, Acquisition Results, and Acquisition and Integration Costs - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
May 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||||
Business combinations, unaudited supplemental pro forma revenue | $ 2,900 | $ 3,000 | $ 5,400 | $ 5,300 | ||
Business combinations, unaudited supplemental pro forma net income (loss) | 14.5 | 27.2 | (68.7) | (47.4) | ||
Business combinations, consolidated acquisition-related revenue | 569.7 | 602.3 | 970.3 | 1,307 | ||
Business combinations, consolidated acquisition-related income (loss) | (13.3) | $ 18.7 | (41.5) | 9.4 | ||
HMG | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, number of shares issued (in shares) | 133,000 | |||||
HMG | Contingent Consideration, Value Of Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Unrealized gain (loss) included in other income | (3.8) | $ 3.2 | $ (5.4) | 3.2 | ||
Total consideration | $ 29.4 | |||||
Business acquisition, cash payment | $ 18 | |||||
Business acquisition, number of shares issued (in shares) | 133,157 | 160,000 | 170,000 | |||
Business combination, contingent consideration, current | 40 | $ 40 | $ 37 | |||
HMG | Contingent Consideration, Collections From Acquired Receivables | ||||||
Business Acquisition [Line Items] | ||||||
Unrealized gain (loss) included in other income | $ 10.4 | |||||
Business acquisition, number of shares issued (in shares) | 87,900 | |||||
Estimated fair value of contingent consideration | 19.4 | $ 19.4 | ||||
IEA | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | 748.5 | |||||
Estimated fair value of contingent consideration | 0 | 0 | ||||
2021 Acquisitions, Henkels & McCoy Group, Inc. and INTREN | ||||||
Business Acquisition [Line Items] | ||||||
Business combinations, consolidated acquisition-related revenue | 480.4 | 1,028.5 | ||||
2023 Acquisitions, Infrastructure Energy Alternatives, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business combinations, consolidated acquisition-related revenue | 520.6 | $ 890.6 | ||||
2023 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, number of shares issued (in shares) | 120,000 | |||||
Business combination, acquisition and integration related costs | 22.7 | $ 39.8 | ||||
2023 Acquisitions | General and Administrative Expense | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, acquisition and integration related costs | 20.4 | 35 | ||||
2023 Acquisitions | Cost of Revenue, Excluding Depreciation and Amortization | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, acquisition and integration related costs | 2.3 | 4.8 | ||||
2022 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | 799.7 | |||||
Estimated fair value of contingent consideration | 2.8 | 2.8 | 3 | |||
2022 Acquisitions | General and Administrative Expense | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, acquisition and integration related costs | $ 12.5 | $ 26.1 | ||||
2022 and 2023 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, integration related liabilities | $ 7 | $ 7 | $ 5.5 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Acquisition-Related Contingent Consideration and Other Liabilities - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Fair Value, Financial Instruments Measured on a Recurring Basis [Line Items] | |||||
Acquisition-related contingent consideration liabilities, net increase (decrease), measurement period adjustments | $ 24,700,000 | ||||
Fair Value Recurring Basis Unobservable Input Reconciliation Liability Gain Loss Statement Of Income Extensible List Not Disclosed Flag | fair value adjustments | fair value adjustments | |||
All Acquisitions | |||||
Fair Value, Financial Instruments Measured on a Recurring Basis [Line Items] | |||||
Acquisition-related contingent consideration liabilities, range of potential undiscounted earn-out liabilities, low | $ 16,000,000 | $ 16,000,000 | |||
Acquisition-related contingent consideration liabilities, range of potential undiscounted earn-out liabilities, high | $ 121,000,000 | $ 121,000,000 | |||
Discount Rate | |||||
Fair Value, Financial Instruments Measured on a Recurring Basis [Line Items] | |||||
Acquisition-related contingent consideration liabilities, measurement input, discount rate | 0.120 | 0.120 | |||
Earn-Out Liabilities | |||||
Fair Value, Financial Instruments Measured on a Recurring Basis [Line Items] | |||||
Acquisition-related contingent consideration liabilities, estimated fair value | $ 99,200,000 | $ 99,200,000 | $ 127,400,000 | ||
Acquisition-related contingent consideration liabilities, additions from new business combinations | 0 | $ 0 | 0 | $ 1,700,000 | |
Acquisition-related contingent consideration liabilities, net increase (decrease), measurement period adjustments | 0 | 3,400,000 | 0 | 1,500,000 | |
Acquisition-related contingent consideration liabilities, net increase (decrease), fair value adjustments | (1,800,000) | (1,300,000) | (2,100,000) | (1,300,000) | |
Acquisition-related contingent consideration liabilities, payments | 24,500,000 | $ 26,800,000 | 26,100,000 | $ 26,800,000 | |
Earn-Out Liabilities | Other Current Liabilities | |||||
Fair Value, Financial Instruments Measured on a Recurring Basis [Line Items] | |||||
Acquisition-related contingent consideration liabilities, estimated fair value | 31,500,000 | 31,500,000 | 37,700,000 | ||
Earn-Out Liabilities | Mandatorily Redeemable Stock | |||||
Fair Value, Financial Instruments Measured on a Recurring Basis [Line Items] | |||||
Acquisition-related contingent consideration liabilities, estimated fair value | 700,000 | 700,000 | $ 13,900,000 | ||
Acquisition-related contingent consideration liabilities, net increase (decrease), fair value adjustments | $ (11,600,000) | (11,600,000) | |||
Acquisition-related contingent consideration liabilities, payments | $ 1,700,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Equity Investments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||||
Nonconsolidated, carrying amount of assets and liabilities | $ 26,000,000 | $ 26,000,000 | $ 24,000,000 | ||
Reporting entity involvement, maximum loss exposure, amount | 37,000,000 | 37,000,000 | 37,000,000 | ||
Equity investments, carrying value | 321,000,000 | 321,000,000 | 306,000,000 | ||
Equity investments, adjusted cost basis, amount | 20,000,000 | 20,000,000 | 20,000,000 | ||
Equity investments, impairments | $ 0 | $ 0 | $ 0 | $ 0 | |
Waha JVs | |||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||||
Equity method investments, ownership percentage | 33% | 33% | |||
Equity investments, carrying value | $ 273,000,000 | $ 273,000,000 | 263,000,000 | ||
CCI | |||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||||
Equity investments, ownership percentage | 15% | 15% | |||
Equity investments, adjusted cost basis, amount | $ 15,000,000 | $ 15,000,000 | 15,000,000 | ||
FM Tech | |||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||||
Equity method investments, ownership percentage | 50% | 50% | |||
Equity investments, carrying value | $ 18,000,000 | $ 18,000,000 | $ 18,000,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - The Waha JVs - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||||
Equity method investments, equity in earnings (losses) | $ 7,496 | $ 6,587 | $ 16,648 | $ 13,364 | |
Equity method investments, net investment | 321,000 | 321,000 | $ 306,000 | ||
Unrealized gains (losses) on equity investee activity, net of tax | 4,576 | 7,843 | 399 | 21,597 | |
Waha JVs | |||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | |||||
Equity method investments, equity in earnings (losses) | 7,500 | 7,600 | 15,400 | 15,000 | |
Equity method investments, distributions of earnings received, operating cash flows | 1,500 | 4,600 | 5,800 | 7,600 | |
Equity method investments, cumulative undistributed earnings | 120,200 | 120,200 | |||
Equity method investments, net investment | 273,000 | 273,000 | $ 263,000 | ||
Unrealized gains (losses) on equity investee activity, before tax | 6,100 | 10,400 | 500 | 28,700 | |
Unrealized gains (losses) on equity investee activity, net of tax | $ 4,600 | $ 7,800 | $ 400 | $ 21,600 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Other Investments - Other Equity Method Investments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 30 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||||||||
Equity method investments, net investment | $ 321,000 | $ 321,000 | $ 321,000 | $ 306,000 | ||||
Equity method investments, equity contributions | 200 | 200 | ||||||
Equity method investments, equity in earnings (losses) | 7,496 | $ 6,587 | 16,648 | $ 13,364 | ||||
Subcontracting Arrangements | Related Party | ||||||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||||||||
Operating costs and expenses | 700 | 500 | 1,200 | 700 | ||||
Accounts payable | 100 | 100 | 100 | 300 | ||||
Accounts receivable, after allowance for credit loss | 50,400 | 50,400 | 50,400 | 42,000 | ||||
Telecommunications Equity Method Investees | ||||||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||||||||
Equity method investments, net investment | 22,000 | 22,000 | 22,000 | 21,000 | ||||
Equity method investments, equity contributions | 0 | 600 | 0 | 1,100 | ||||
Equity method investments, equity in earnings (losses) | (100) | (500) | 1,000 | (900) | ||||
Payments for advance to affiliate | 400 | 0 | 400 | 0 | ||||
Telecommunications Equity Method Investees | Subcontracting Arrangements | Related Party | ||||||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||||||||
Operating costs and expenses | 500 | 1,600 | 1,000 | 2,500 | ||||
Accounts payable | 200 | 200 | 200 | 200 | ||||
Telecommunications Equity Method Investees | Employee Leasing and Advanced Receivable Arrangement | Related Party | ||||||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||||||||
Accounts receivable, after allowance for credit loss | 4,100 | 4,100 | 4,100 | 3,800 | ||||
FM Tech | ||||||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||||||||
Equity method investments, net investment | $ 18,000 | $ 18,000 | $ 18,000 | 18,000 | ||||
Equity method investments, ownership percentage | 50% | 50% | 50% | |||||
Certain Entities, Each Accounted for Using Equity Method Investments | ||||||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||||||||
Equity method investments, net investment | $ 3,000 | $ 3,000 | $ 3,000 | $ 3,000 | ||||
Equity method investments, equity in earnings (losses) | $ 200 | (200) | $ 100 | (300) | ||||
Equity method investments, ownership percentage | 49% | 49% | 49% | 49% | ||||
Line of credit, amount drawn | $ 3,000 | $ 3,000 | $ 3,000 | $ 4,500 | ||||
Certain Entities, Each Accounted for Using Equity Method Investments | Related Party | ||||||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||||||||
Operating costs and expenses | 200 | 1,400 | 600 | 5,000 | ||||
Certain Entities, Each Accounted for Using Equity Method Investments | Other Current Assets | ||||||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||||||||
Line of credit, amount drawn | $ 0 | 0 | 0 | $ 600 | ||||
Confluence | ||||||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||||||||
Equity method investments, equity contributions | 200 | 200 | $ 2,100 | |||||
Equity method investments, equity in earnings (losses) | $ (100) | $ (100) | $ (300) | |||||
Equity method investments, ownership percentage | 75% | 75% | 75% | |||||
Financing commitments (up to) | $ 2,500 | |||||||
AVCT | Corporate | ||||||||
Fair Value, Financial Instruments Measured on a Non-Recurring Basis [Line Items] | ||||||||
Equity investments written off | $ 200 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Senior Notes - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
4.50% Senior Notes | ||
Fair Value Disclosure of Liabilities Not Measured at Fair Value [Line Items] | ||
Senior notes, gross carrying amount | $ 600 | $ 600 |
4.50% Senior Notes | Senior Notes | ||
Fair Value Disclosure of Liabilities Not Measured at Fair Value [Line Items] | ||
Debt instrument, interest rate (percentage) | 4.50% | |
Senior notes, estimated fair value | $ 552.9 | 534 |
6.625% Senior Notes | ||
Fair Value Disclosure of Liabilities Not Measured at Fair Value [Line Items] | ||
Senior notes, gross carrying amount | $ 282.8 | 281.2 |
6.625% Senior Notes | Senior Notes | ||
Fair Value Disclosure of Liabilities Not Measured at Fair Value [Line Items] | ||
Debt instrument, interest rate (percentage) | 6.625% | |
Senior notes, estimated fair value | $ 285 | $ 280.5 |
Six Point Six Two Five Percent IEA Senior Notes | ||
Fair Value Disclosure of Liabilities Not Measured at Fair Value [Line Items] | ||
Senior notes, gross carrying amount | 225.1 | |
Six Point Six Two Five Percent MasTec Senior Notes | ||
Fair Value Disclosure of Liabilities Not Measured at Fair Value [Line Items] | ||
Senior notes, gross carrying amount | $ 74.9 |
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 | Jun. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Contract billings | $ 1,492,200 | $ 1,408,100 |
Less allowance | (7,000) | (8,400) |
Accounts receivable, net of allowance | 1,485,199 | 1,399,732 |
Contract Assets [Abstract] | ||
Retainage | 353,900 | 401,900 |
Unbilled receivables | 1,496,800 | 1,328,000 |
Contract assets | $ 1,850,748 | $ 1,729,886 |
Accounts Receivable, Net of A_4
Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Schedule of Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities [Line Items] | |||||
Provision (recovery) for credit losses | $ (700) | $ 500 | |||
Contract liabilities | $ 487,198 | 487,198 | $ 406,232 | ||
Contract with customer liability, deferred revenue current | 476,700 | 476,700 | $ 390,300 | ||
Deferred revenue, revenue recognized | 342,200 | ||||
Non-recourse financing agreement, discount charge | 59,415 | $ 19,387 | 112,108 | 35,428 | |
Receivables, Non-Recourse Arrangement | |||||
Schedule of Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities [Line Items] | |||||
Non-recourse financing agreement, discount charge | $ 4,200 | $ 1,500 | $ 8,000 | $ 2,500 | |
Minimum | |||||
Schedule of Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities [Line Items] | |||||
Retainage, percentage of contract billings | 5% | ||||
Maximum | |||||
Schedule of Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities [Line Items] | |||||
Retainage, percentage of contract billings | 10% |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property and Equipment [Line Items] | ||
Property and equipment | $ 3,490,400 | $ 3,311,400 |
Less accumulated depreciation and amortization | (1,736,700) | (1,557,300) |
Property and equipment, net | 1,753,667 | 1,754,101 |
Land | ||
Property and Equipment [Line Items] | ||
Property and equipment | 73,600 | 73,500 |
Buildings and leasehold improvements | ||
Property and Equipment [Line Items] | ||
Property and equipment | 91,000 | 86,700 |
Machinery, equipment and vehicles | ||
Property and Equipment [Line Items] | ||
Property and equipment | 2,957,500 | 2,797,000 |
Office equipment, furniture and internal-use software | ||
Property and Equipment [Line Items] | ||
Property and equipment | 315,400 | 286,800 |
Construction in progress | ||
Property and Equipment [Line Items] | ||
Property and equipment | $ 52,900 | $ 67,400 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Property and Equipment [Line Items] | |||||
Capitalized internal-use software, gross | $ 202,900 | $ 202,900 | $ 186,600 | ||
Capitalized internal-use software, net | 48,100 | 48,100 | $ 39,900 | ||
Decrease in depreciation expense | $ (103,038) | $ (87,001) | (210,285) | $ (172,195) | |
Change in Accounting Method Accounted for as Change in Estimate | |||||
Property and Equipment [Line Items] | |||||
Decrease in depreciation expense | $ 2,000 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Finance lease and other obligations | $ 404,100 | $ 414,500 |
Total debt obligations | 3,339,500 | 3,241,700 |
Less unamortized deferred financing costs | (15,600) | (17,600) |
Total debt, net of deferred financing costs | 3,323,900 | 3,224,100 |
Current portion of long-term debt | 169,253 | 171,916 |
Long-term debt | 3,154,576 | 3,052,193 |
Credit Facility | Revolving Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 1,007,000 | 896,000 |
Credit Facility | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 345,600 | 350,000 |
Credit Facility | Term Loan | 2022 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | $ 700,000 | 700,000 |
Senior Notes | 4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 4.50% | |
Long-term debt obligations | $ 600,000 | 600,000 |
Senior Notes | 6.625% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate (percentage) | 6.625% | |
Long-term debt obligations | $ 282,800 | $ 281,200 |
Debt - Senior Credit Facility -
Debt - Senior Credit Facility - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2025 | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Line of credit facility, letters of credit issued | $ 128.2 | $ 166.7 | |
Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 2,250 | ||
Line of credit facility, letters of credit issued | $ 111 | $ 143.1 | |
Line of credit facility, unused facility fee (percentage) | 0.225% | 0.20% | |
Credit Facility | Revolving Loans | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,900 | ||
Weighted average interest rate (percentage) | 6.90% | 5.82% | |
Line of credit facility, remaining borrowing capacity | $ 782 | $ 860.9 | |
Credit Facility | Term Loan | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 350 | ||
Line of credit facility, term loan, amount of quarterly principal installment payments | $ 2.2 | ||
Line of credit facility, interest rate (percentage) | 6.83% | 5.80% | |
Credit Facility | Term Loan | Forecast | |||
Debt Instrument [Line Items] | |||
Line of credit facility, term loan, amount of quarterly principal installment payments | $ 4.4 | ||
Credit Facility | Letters of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit facility, capacity available for letters of credit | $ 539 | $ 506.9 | |
Credit Facility | Letters of Credit | Performance Standby | |||
Debt Instrument [Line Items] | |||
Line of credit facility, interest rate (percentage) | 0.6875% | 0.5625% | |
Credit Facility | Letters of Credit | Commercial and/or Financial Standby | |||
Debt Instrument [Line Items] | |||
Line of credit facility, interest rate (percentage) | 1.625% | 1.375% | |
Credit Facility | Foreign Denomination | |||
Debt Instrument [Line Items] | |||
Line of credit facility, remaining borrowing capacity | $ 300 | $ 300 | |
Long-term line of credit | $ 0 | $ 0 |
Debt - Other Credit Facilities
Debt - Other Credit Facilities - Narrative (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Letters of credit issued | $ 128,200,000 | $ 166,700,000 |
Other Credit Facilities | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 0 | 0 |
Standby Letters of Credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Letters of credit issued | $ 17,200,000 | $ 23,600,000 |
Standby Letters of Credit | Line of Credit | Letters of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, interest rate (percentage) | 0.90% | 0.75% |
Debt - 2022 Term Loan Facility
Debt - 2022 Term Loan Facility (Details) - Unsecured Debt - Line of Credit - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2026 | Mar. 31, 2024 | |
New Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 700,000 | |||
New Term Loan Facility, Three-Year Tranche | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 400,000 | |||
Debt instrument, term | 3 years | |||
Debt instrument, interest rate during period | 6.621% | 5.692% | ||
New Term Loan Facility, Five-Year Tranche | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 300,000 | |||
Debt instrument, term | 5 years | |||
Debt instrument, interest rate during period | 6.746% | 5.817% | ||
New Term Loan Facility, Five-Year Tranche | Forecast | ||||
Debt Instrument [Line Items] | ||||
Quarterly installments | $ 7,500 | $ 3,750 |
Debt - Additional Information -
Debt - Additional Information - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Debt instruments, accrued interest payable | $ 25.4 | $ 24.8 |
Lease Obligations - Narrative (
Lease Obligations - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||||
Leases, remaining lease terms | 16 years | ||||
Finance leases, assets, gross | $ 701 | $ 701 | $ 720.1 | ||
Assets held under finance leases, location | Property and equipment, net | Property and equipment, net | Property and equipment, net | ||
Finance leases, assets, net | $ 501.5 | $ 501.5 | $ 535.3 | ||
Finance leases, assets, depreciation | 24.5 | $ 20 | 52.5 | $ 40.3 | |
Operating leases, additions | $ 97.2 | 18.4 | $ 123.5 | 45.3 | |
Operating leases, term of contract | 1 year | 1 year | |||
Operating leases, expense | $ 37.5 | 33.9 | $ 72.7 | 67.9 | |
Operating leases, variable lease costs | 3.6 | 2.5 | 7.6 | 5.5 | |
Operating leases, short-term leases, expense | $ 130.7 | $ 53.7 | $ 241.8 | $ 159.3 | |
Finance leases, weighted average remaining lease term (in years) | 2 years 9 months 18 days | 2 years 9 months 18 days | |||
Finance leases, weighted average discount rate, percent | 4.40% | 4.40% | |||
Operating leases, weighted average remaining lease term (in years) | 4 years 2 months 12 days | 4 years 2 months 12 days | |||
Operating leases, weighted average discount rate, percent | 4.10% | 4.10% | |||
Minimum | Equipment Leases | |||||
Lessee, Lease, Description [Line Items] | |||||
Leases, renewal term | 1 year | ||||
Minimum | Facility Leases | |||||
Lessee, Lease, Description [Line Items] | |||||
Leases, renewal term | 1 year | ||||
Maximum | Equipment Leases | |||||
Lessee, Lease, Description [Line Items] | |||||
Leases, renewal term | 5 years | ||||
Maximum | Facility Leases | |||||
Lessee, Lease, Description [Line Items] | |||||
Leases, renewal term | 5 years |
Lease Obligations - Schedule of
Lease Obligations - Schedule of Future Minimum Lease Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finance Leases | ||
2023, remaining six months | $ 85,100 | |
2024 | 141,500 | |
2025 | 104,800 | |
2026 | 47,700 | |
2027 | 10,900 | |
Thereafter | 1,800 | |
Total minimum lease payments | 391,800 | |
Less amounts representing interest | (24,300) | |
Total lease obligations, net of interest | 367,500 | |
Less current portion | 144,900 | |
Long-term portion of lease obligations, net of interest | $ 222,600 | |
Finance lease liability, current, location | Current portion of long-term debt, including finance leases | |
Finance lease liability, long-term, location | Long-term debt, including finance leases | |
Operating Leases | ||
2023, remaining six months | $ 64,600 | |
2024 | 113,300 | |
2025 | 88,400 | |
2026 | 59,000 | |
2027 | 27,600 | |
Thereafter | 34,400 | |
Total minimum lease payments | 387,300 | |
Less amounts representing interest | (33,700) | |
Total lease obligations, net of interest | 353,600 | |
Less current portion | 117,633 | $ 96,516 |
Long-term portion of lease obligations, net of interest | $ 235,977 | $ 194,050 |
Stock-Based Compensation and _3
Stock-Based Compensation and Other Employee Benefit Plans - Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-Based Compensation and Other Employee Benefit Plans [Line Items] | ||||
Stock-based compensation plans, number of shares available for future grant (in shares) | 2,739 | 2,739 | ||
Non-cash stock-based compensation expense | $ 8.6 | $ 6.8 | $ 17.1 | $ 13.2 |
Stock-based compensation, income tax benefits | $ 1.5 | $ 1.2 | $ 11.8 | 3.4 |
Tax benefit (expense), share-based payment arrangement | $ 0.9 |
Stock-Based Compensation and _4
Stock-Based Compensation and Other Employee Benefit Plans - Restricted Shares, Narrative (Details) - Restricted Shares - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-Based Compensation and Other Employee Benefit Plans [Line Items] | ||||
Stock-based compensation awards, unearned compensation | $ 57.9 | $ 57.9 | ||
Stock-based compensation awards, unearned compensation, weighted average expected recognition period (in years) | 2 years | |||
Stock-based compensation, vested awards, intrinsic value | $ 0.7 | $ 0.2 | $ 78 | $ 19.2 |
Stock-Based Compensation and _5
Stock-Based Compensation and Other Employee Benefit Plans - Schedule of Activity, Restricted Shares (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Restricted Shares | |
Restricted Shares | |
Non-vested restricted shares, beginning balance (in shares) | 2,049,280 |
Granted (in shares) | 201,511 |
Vested (in shares) | (852,492) |
Canceled/forfeited (in shares) | (30,072) |
Non-vested restricted shares, ending balance (in shares) | 1,368,227 |
Per Share Weighted Average Grant Date Fair Value | |
Non-vested restricted shares, beginning balance (in dollars per share) | $ / shares | $ 52.33 |
Granted (in dollars per share) | $ / shares | 96.02 |
Vested (in dollars per share) | $ / shares | 27.68 |
Canceled/forfeited (in dollars per share) | $ / shares | 47.30 |
Non-vested restricted shares, ending balance (in dollars per share) | $ / shares | $ 74.24 |
Restricted Stock Units | |
Restricted Shares | |
Non-vested restricted shares, beginning balance (in shares) | 2,150 |
Non-vested restricted shares, ending balance (in shares) | 1,000 |
Stock-Based Compensation and _6
Stock-Based Compensation and Other Employee Benefit Plans - ESPP (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-Based Compensation and Other Employee Benefit Plans [Line Items] | ||||
Common shares issued (in shares) | 25,353 | 31,888 | 46,651 | 56,625 |
Employee Stock Purchase Plans | ||||
Stock-Based Compensation and Other Employee Benefit Plans [Line Items] | ||||
ESPP purchase price, percent | 85% | |||
Cash proceeds | $ 2.1 | $ 1.8 | $ 3.8 | $ 3.6 |
Compensation expense | $ 0.4 | $ 0.3 | $ 0.7 | $ 0.7 |
Other Retirement Plans (Details
Other Retirement Plans (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) employee | Jun. 30, 2022 USD ($) employee | Jun. 30, 2023 USD ($) employee | Jun. 30, 2022 USD ($) employee | |
Covered Employees and Contributions, Multiemployer Plans [Line Items] | ||||
Multiemployer plan, employer contribution, cost | $ 37.8 | $ 36.2 | $ 73 | $ 66.4 |
Pension | ||||
Covered Employees and Contributions, Multiemployer Plans [Line Items] | ||||
Multiemployer plan, employer contribution, cost | 21.3 | 22.3 | 43.1 | 39.3 |
Other Multiemployer | ||||
Covered Employees and Contributions, Multiemployer Plans [Line Items] | ||||
Multiemployer plan, employer contribution, cost | $ 16.5 | $ 13.9 | $ 29.9 | $ 27.1 |
Low | ||||
Covered Employees and Contributions, Multiemployer Plans [Line Items] | ||||
Multiemployer plans, covered employees (in number of employees) | employee | 7,581 | 6,672 | 6,806 | 6,601 |
High | ||||
Covered Employees and Contributions, Multiemployer Plans [Line Items] | ||||
Multiemployer plans, covered employees (in number of employees) | employee | 7,727 | 7,136 | 7,727 | 7,136 |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity, Treasury Stock [Line Items] | |||||
Treasury stock acquired (in shares) | 0 | 936,000 | 0 | 1,124,000 | |
Treasury stock acquired, value | $ 67,500,000 | $ 81,291,000 | |||
December 2018 Share Repurchase Program | |||||
Equity, Treasury Stock [Line Items] | |||||
Treasury stock acquired (in shares) | 100,000 | ||||
Treasury stock acquired, value | $ 8,600,000 | ||||
Share repurchase program, amount authorized, value | $ 100,000,000 | $ 100,000,000 | |||
March 2020 Share Repurchase Program | |||||
Equity, Treasury Stock [Line Items] | |||||
Treasury stock acquired (in shares) | 1,000,000 | ||||
Treasury stock acquired, value | $ 72,700,000 | ||||
Share repurchase program, amount authorized, value | $ 150,000,000 | 150,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 77,300,000 | $ 77,300,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Consolidated effective tax rate, percent | 14.90% | 10.90% | 39.60% | 37.40% |
Stock-based compensation, vested awards, net income tax benefits | $ 8.9 | $ 1 | ||
Tax benefit (expense), true-up of certain prior year non-deductible expenses | $ 2 |
Segments and Related Informat_3
Segments and Related Information - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Number of operating segments | segment | 5 | ||||
Number of reportable segments | segment | 5 | ||||
2023 Acquisitions | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Business combination, acquisition and integration related costs | $ 22.7 | $ 39.8 | |||
Corporate | AVCT | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Fair value losses related to investment | $ 0.2 | ||||
Corporate | AVCT | Common Stock | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Fair value losses related to investment | $ 2.2 | $ 7.1 | |||
Corporate | 2023 Acquisitions | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Business combination, acquisition and integration related costs | 1.4 | 3 | 2.7 | 6.8 | |
Communications | Operating Segments | 2023 Acquisitions | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Business combination, acquisition and integration related costs | 4.6 | 1.1 | 13.5 | 1.9 | |
Clean Energy and Infrastructure | Operating Segments | 2023 Acquisitions | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Business combination, acquisition and integration related costs | 16.4 | 1.4 | 21.7 | 3.3 | |
Power Delivery | Operating Segments | 2023 Acquisitions | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Business combination, acquisition and integration related costs | $ 0.3 | $ 7 | $ 1.9 | $ 14.1 |
Segments and Related Informat_4
Segments and Related Information - Schedule of Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segments and Related Information [Line Items] | |||||
Consolidated revenue | $ 2,874,115 | $ 2,301,792 | $ 5,458,774 | $ 4,256,192 | |
Segment EBITDA | 263,600 | 190,600 | 390,700 | 316,300 | |
Consolidated depreciation and amortization | 145,100 | $ 114,700 | 294,300 | $ 225,500 | |
Consolidated assets | $ 9,287,820 | $ 9,287,820 | $ 9,293,259 | ||
Communications | Customer Concentration Risk | Revenue | Utilities | |||||
Segments and Related Information [Line Items] | |||||
Concentration risk, percentage of total | 23.60% | 24.10% | 23.60% | 24.80% | |
Reportable Segments | Communications | |||||
Segments and Related Information [Line Items] | |||||
Consolidated revenue | $ 868,700 | $ 822,000 | $ 1,675,200 | $ 1,486,200 | |
Segment EBITDA | 89,500 | 84,200 | 142,300 | 124,600 | |
Consolidated depreciation and amortization | 34,000 | 30,700 | 68,600 | 59,700 | |
Consolidated assets | 2,495,200 | 2,495,200 | 2,378,600 | ||
Reportable Segments | Clean Energy and Infrastructure | |||||
Segments and Related Information [Line Items] | |||||
Consolidated revenue | 969,700 | 494,500 | 1,794,600 | 930,400 | |
Segment EBITDA | 33,200 | (5,200) | 38,500 | 5,600 | |
Consolidated depreciation and amortization | 31,700 | 11,700 | 70,100 | 23,100 | |
Consolidated assets | 2,819,600 | 2,819,600 | 2,979,900 | ||
Reportable Segments | Oil and Gas | |||||
Segments and Related Information [Line Items] | |||||
Consolidated revenue | 341,800 | 341,200 | 598,300 | 552,200 | |
Segment EBITDA | 77,000 | 62,800 | 91,500 | 84,200 | |
Consolidated depreciation and amortization | 36,600 | 32,200 | 70,900 | 63,800 | |
Consolidated assets | 1,692,100 | 1,692,100 | 1,544,200 | ||
Reportable Segments | Power Delivery | |||||
Segments and Related Information [Line Items] | |||||
Consolidated revenue | 702,600 | 646,500 | 1,412,000 | 1,296,900 | |
Segment EBITDA | 57,100 | 41,400 | 104,500 | 87,500 | |
Consolidated depreciation and amortization | 40,200 | 36,800 | 79,400 | 72,500 | |
Consolidated assets | 1,856,800 | 1,856,800 | 1,967,900 | ||
Reportable Segments | Other | |||||
Segments and Related Information [Line Items] | |||||
Consolidated revenue | 0 | 0 | 0 | 0 | |
Segment EBITDA | 6,800 | 7,400 | 13,900 | 14,400 | |
Consolidated depreciation and amortization | 0 | 0 | 0 | 0 | |
Consolidated assets | 307,600 | 307,600 | 297,300 | ||
Eliminations | |||||
Segments and Related Information [Line Items] | |||||
Consolidated revenue | (8,700) | (2,400) | (21,300) | (9,500) | |
Corporate | |||||
Segments and Related Information [Line Items] | |||||
Consolidated depreciation and amortization | 2,600 | $ 3,300 | 5,300 | $ 6,400 | |
Consolidated assets | $ 116,500 | $ 116,500 | $ 125,400 |
Segments and Related Informat_5
Segments and Related Information - Reconciliation of Consolidated Income before Income Taxes to EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
EBITDA Reconciliation: | ||||
Income (loss) before income taxes | $ 19,688 | $ 18,247 | $ (105,592) | $ (29,861) |
Interest expense, net | 59,415 | 19,387 | 112,108 | 35,428 |
Depreciation | 103,038 | 87,001 | 210,285 | 172,195 |
Amortization of intangible assets | 42,043 | 27,673 | 83,987 | 53,263 |
Corporate EBITDA | 39,400 | 38,300 | 89,900 | 85,300 |
Segment EBITDA | $ 263,600 | $ 190,600 | $ 390,700 | $ 316,300 |
Segments and Related Informat_6
Segments and Related Information - Foreign Operations and Other - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segments and Related Information [Line Items] | |||||
Revenue | $ 2,874,115 | $ 2,301,792 | $ 5,458,774 | $ 4,256,192 | |
Property and equipment, net | $ 1,753,667 | $ 1,753,667 | $ 1,754,101 | ||
Govermment | Revenue Benchmark | Customer Concentration Risk | |||||
Segments and Related Information [Line Items] | |||||
Concentration risk, percentage of total | 12% | 7% | 10% | 7% | |
United States | |||||
Segments and Related Information [Line Items] | |||||
Revenue | $ 2,900,000 | $ 2,300,000 | $ 5,400,000 | $ 4,200,000 | |
Property and equipment, net | 1,700,000 | 1,700,000 | 1,700,000 | ||
Intangible assets and goodwill, net | 2,900,000 | 2,900,000 | 3,000,000 | ||
Foreign Operations | |||||
Segments and Related Information [Line Items] | |||||
Revenue | 22,100 | $ 51,300 | 49,600 | $ 75,800 | |
Property and equipment, net | 19,400 | 19,400 | 21,000 | ||
Intangible assets and goodwill, net | $ 34,700 | $ 34,700 | $ 35,500 | ||
Foreign Operations | Accounts Receivable, Net, Less Deferred Revenue | Geographic Concentration Risk | |||||
Segments and Related Information [Line Items] | |||||
Concentration risk, percentage of total | 1% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Apr. 28, 2023 USD ($) | Mar. 31, 2021 USD ($) | Jun. 30, 2023 USD ($) project | Jun. 30, 2022 | Jun. 30, 2023 USD ($) project customer | Jun. 30, 2022 | Dec. 31, 2022 USD ($) | |
Loss Contingencies [Line Items] | |||||||
Line of credit facility, letters of credit issued | $ 128,200,000 | $ 128,200,000 | $ 166,700,000 | ||||
Cash and cash equivalents | 119,905,000 | 119,905,000 | 370,592,000 | ||||
Indemnities, accrued project close-out liabilities | 20,000,000 | $ 20,000,000 | 40,000,000 | ||||
Number of customers | customer | 1,305 | ||||||
Workers' Compensation, General and Automobile Policies | Self-Insurance | |||||||
Loss Contingencies [Line Items] | |||||||
Self-insurance reserve | 196,000,000 | $ 196,000,000 | 176,700,000 | ||||
Workers' Compensation, General and Automobile Policies | Self-Insurance | Other Long-Term Liabilities | |||||||
Loss Contingencies [Line Items] | |||||||
Self-insurance reserve, non-current | 123,900,000 | 123,900,000 | 109,300,000 | ||||
Employee Group Medical Claims | Self-Insurance | |||||||
Loss Contingencies [Line Items] | |||||||
Self-insurance reserve | 4,400,000 | 4,400,000 | 4,100,000 | ||||
Corporate Joint Venture | |||||||
Loss Contingencies [Line Items] | |||||||
Cash and cash equivalents | $ 23,200,000 | $ 23,200,000 | 25,700,000 | ||||
Corporate Joint Venture | Joint Ventures That Provide Electrical Transmission Infrastructure Services | Minimum | |||||||
Loss Contingencies [Line Items] | |||||||
Proportionately consolidated non-controlled joint venture, ownership percentage | 85% | 85% | |||||
Corporate Joint Venture | Joint Ventures That Provide Electrical Transmission Infrastructure Services | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Proportionately consolidated non-controlled joint venture, ownership percentage | 90% | 90% | |||||
Corporate Joint Venture | Joint Venture Civil Construction Project | |||||||
Loss Contingencies [Line Items] | |||||||
Number of joint ventures | project | 4 | 4 | |||||
Corporate Joint Venture | Joint Venture Civil Construction Project | Minimum | |||||||
Loss Contingencies [Line Items] | |||||||
Proportionately consolidated non-controlled joint venture, ownership percentage | 25% | 25% | |||||
Corporate Joint Venture | Joint Venture Civil Construction Project | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Proportionately consolidated non-controlled joint venture, ownership percentage | 50% | 50% | |||||
Corporate Joint Venture | Joint Venture, Pipeline Project | |||||||
Loss Contingencies [Line Items] | |||||||
Proportionately consolidated non-controlled joint venture, ownership percentage | 49% | 49% | |||||
Number of joint ventures | project | 1 | 1 | |||||
Contractual Joint Venture | |||||||
Loss Contingencies [Line Items] | |||||||
Payments for project financing | $ 500,000 | ||||||
Captive Insurance Company | |||||||
Loss Contingencies [Line Items] | |||||||
Cash and cash equivalents | $ 900,000 | 900,000 | 1,100,000 | ||||
Performance and Payment Bonds | |||||||
Loss Contingencies [Line Items] | |||||||
Bonded projects, estimated costs to complete | 1,789,700,000 | 1,789,700,000 | 1,739,900,000 | ||||
Commercial and/or Financial Standby | Workers' Compensation, General and Automobile Policies | Self-Insurance | |||||||
Loss Contingencies [Line Items] | |||||||
Line of credit facility, letters of credit issued | 56,400,000 | 56,400,000 | 95,600,000 | ||||
Surety Bonds | Workers' Compensation | Self-Insurance | |||||||
Loss Contingencies [Line Items] | |||||||
Guarantor obligations, maximum exposure, undiscounted | 148,600,000 | 148,600,000 | 110,900,000 | ||||
Subsidiaries | Performance and Payment Bonds | |||||||
Loss Contingencies [Line Items] | |||||||
Guarantor obligations, maximum exposure, undiscounted | 5,389,200,000 | 5,389,200,000 | 4,855,500,000 | ||||
Subsidiaries | Performance and Payment Bonds | Corporate Joint Venture | |||||||
Loss Contingencies [Line Items] | |||||||
Guarantor obligations, maximum exposure, undiscounted | $ 357,900,000 | $ 357,900,000 | 115,800,000 | ||||
Revenue Benchmark | Customer Concentration Risk | Ten Largest Customers | |||||||
Loss Contingencies [Line Items] | |||||||
Concentration risk, percentage of total | 35% | 42% | 36% | 43% | |||
Infrastructure Energy Alternatives, Inc. | Commitments And Contingencies Concentration Risk | |||||||
Loss Contingencies [Line Items] | |||||||
Attorney fee percentage | 0.45 | ||||||
Silicon Ranch Corporation, LLC | Litigation Settlement, Benchmark | Commitments And Contingencies Concentration Risk | |||||||
Loss Contingencies [Line Items] | |||||||
Concentration risk, percentage of total | 30% | ||||||
IEA | Pension | |||||||
Loss Contingencies [Line Items] | |||||||
Multiemployer plans, withdrawal obligation, monthly payment amount | $ 10,000 | ||||||
Withdrawal liability | $ 1,900,000 | $ 1,900,000 | $ 1,900,000 | ||||
IEA | Litigation Settlement, Benchmark | Commitments And Contingencies Concentration Risk | |||||||
Loss Contingencies [Line Items] | |||||||
Concentration risk, percentage of total | 40% | ||||||
IEA Constructors, LLC | Litigation Settlement, Benchmark | Commitments And Contingencies Concentration Risk | |||||||
Loss Contingencies [Line Items] | |||||||
Concentration risk, percentage of total | 30% | ||||||
Silicon Ranch Corporation, LLC Matter | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought | $ 1,000,000 | ||||||
Silicon Ranch Corporation, LLC Matter | H&L Farms | |||||||
Loss Contingencies [Line Items] | |||||||
Payments to acquire land | $ 3,300,000 | ||||||
Silicon Ranch Corporation, LLC Matter | Infrastructure Energy Alternatives, Inc. | |||||||
Loss Contingencies [Line Items] | |||||||
Compensatory damages awarded to plaintiffs | 4,500,000 | ||||||
Remediation costs | 1,500,000 | ||||||
Silicon Ranch Corporation, LLC Matter | Silicon Ranch Corporation, LLC | |||||||
Loss Contingencies [Line Items] | |||||||
Punitive damages | 25,000,000 | ||||||
Silicon Ranch Corporation, LLC Matter | Infrastructure Energy Alternatives, Inc. And IEA Constructors, LLC | |||||||
Loss Contingencies [Line Items] | |||||||
Punitive damages | 50,000,000 | ||||||
Reduction in punitive damages | $ 250,000 |
Related Party Transactions (Det
Related Party Transactions (Details) shares in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) employee | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) employee shares | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |||||
Revenue | $ 2,874,115,000 | $ 2,301,792,000 | $ 5,458,774,000 | $ 4,256,192,000 | |
Equity method Investment, related party, ownership percentage | 25% | 25% | |||
Equity contributions | $ 3,600,000 | 0 | $ 3,600,000 | 500,000 | |
Cash portion of equity contributions | 200,000 | 200,000 | |||
Negative equity method investment | 100,000 | 100,000 | $ 200,000 | ||
Line of credit facility, letters of credit issued | $ 128,200,000 | 128,200,000 | 166,700,000 | ||
Payments to non-controlling interests, including acquisition of interests and distributions | $ 8,955,000 | 26,779,000 | |||
Noncontrolling interest, percentage of voting interests acquired | 15% | 15% | |||
Payments to non-controlling interests, including acquisition of interests and distributions | $ (11,660,000) | 0 | |||
2023 Acquisitions | |||||
Related Party Transaction [Line Items] | |||||
Payments to non-controlling interests, including acquisition of interests and distributions | $ (10,000,000) | ||||
Business acquisition, number of shares issued (in shares) | shares | 120 | ||||
2023 Acquisitions | Oil and Gas | |||||
Related Party Transaction [Line Items] | |||||
Business acquisition, equity interest issued or issuable, value assigned | $ 11,600,000 | $ 11,600,000 | |||
Construction Services | |||||
Related Party Transaction [Line Items] | |||||
Payments to non-controlling interests, including acquisition of interests and distributions | $ 16,100,000 | ||||
Management | Subcontracting Arrangements | |||||
Related Party Transaction [Line Items] | |||||
Number of management members, subcontracting arrangement | employee | 2 | 2 | |||
Management | Other Subcontracting Arrangements | |||||
Related Party Transaction [Line Items] | |||||
Receivables, net of deferred revenue, related party | $ (1,100,000) | $ (1,100,000) | 2,300,000 | ||
Management | Other Subcontracting Arrangements | Line of Credit | |||||
Related Party Transaction [Line Items] | |||||
Line of credit facility, letters of credit issued | 15,000,000 | 15,000,000 | |||
Immediate Family Member of Management | Equipment | CCI | |||||
Related Party Transaction [Line Items] | |||||
Payments, net of rebates, related party | $ 300,000 | 700,000 | 1,300,000 | 1,700,000 | |
Immediate Family Member of Management | Construction Services | |||||
Related Party Transaction [Line Items] | |||||
Percentage of earn out payment paid | 25% | ||||
Chairman, Board of Directors | |||||
Related Party Transaction [Line Items] | |||||
Payments for life insurance policies | $ 500,000 | ||||
Executive Officers | |||||
Related Party Transaction [Line Items] | |||||
Life insurance assets, carrying amount | 27,100,000 | 27,100,000 | 25,800,000 | ||
Executive Officers | Former Owner | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable, after allowance for credit loss | 2,100,000 | 2,100,000 | 2,000,000 | ||
Payments, net of rebates, related party | 0 | 100,000 | 100,000 | 1,400,000 | |
Executive Officers | Construction Services | |||||
Related Party Transaction [Line Items] | |||||
Operating costs and expenses | 200,000 | 200,000 | 600,000 | 300,000 | |
Payments, net of rebates, related party | 100,000 | 200,000 | |||
Chief Executive Officer | |||||
Related Party Transaction [Line Items] | |||||
Payments for life insurance policies | 700,000 | ||||
Related Party | Equipment, Supplies and Services | |||||
Related Party Transaction [Line Items] | |||||
Operating costs and expenses | 10,700,000 | 7,800,000 | 26,800,000 | 14,600,000 | |
Accounts payable | 1,300,000 | 1,300,000 | 2,600,000 | ||
Revenue | 5,200,000 | 1,300,000 | 7,400,000 | 5,100,000 | |
Accounts receivable, after allowance for credit loss | 4,400,000 | 4,400,000 | 3,200,000 | ||
Related Party | Equipment | CCI | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable | 600,000 | 600,000 | 600,000 | ||
Related Party | Subcontracting Arrangements | |||||
Related Party Transaction [Line Items] | |||||
Operating costs and expenses | 700,000 | 500,000 | 1,200,000 | 700,000 | |
Accounts payable | 100,000 | 100,000 | 300,000 | ||
Revenue | 36,100,000 | 31,900,000 | 77,900,000 | 60,700,000 | |
Accounts receivable, after allowance for credit loss | 50,400,000 | 50,400,000 | 42,000,000 | ||
Related Party | Other Subcontracting Arrangements | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable, after allowance for credit loss | 400,000 | 400,000 | $ 400,000 | ||
Other operating income | 200,000 | 200,000 | 400,000 | 400,000 | |
Related Party | Lease Agreements | |||||
Related Party Transaction [Line Items] | |||||
Operating costs and expenses | 700,000 | 600,000 | 1,400,000 | 1,300,000 | |
Related Party | Construction Services | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable, after allowance for credit loss | 200,000 | 200,000 | |||
Related Customer | Subcontracting Arrangements | |||||
Related Party Transaction [Line Items] | |||||
Operating costs and expenses | 400,000 | $ 100,000 | 400,000 | $ 100,000 | |
Accounts payable | $ 300,000 | $ 300,000 |