Goodwill And Other Intangible Assets

9 Months Ended

Sep. 30, 2011

Goodwill And Other Intangible Assets

Note 4 – Goodwill and Other Intangible Assets

The following table sets forth information for MasTec's goodwill and intangible assets, including those associated with preliminary purchase price allocations, as of the dates indicated (in millions):


	September 30, 2011			December 31, 2010
Amortizing intangible assets: (1)
Gross carrying amount	$	97.6		$	75.2
Less: accumulated amortization		(48.6	)		(38.9	)

Amortizing intangible assets, net	$	49.0		$	36.3

Non-amortizing intangible assets:
Goodwill	$	801.4		$	613.4
Trade names		35.3			35.3
Pre-qualifications		31.3			—
Other		6.6			6.6

Non-amortizing intangible assets	$	874.6		$	655.3

Goodwill and other intangible assets	$	923.6		$	691.6

(1)

Consists principally of customer relationships, backlog, trade names and non-compete agreements with finite lives.

The following table provides a reconciliation of changes in goodwill and other intangible assets for the period indicated (in millions):


	Goodwill		Other Intangible Assets					Total
	Goodwill		Non-amortizing		Amortizing			Total
Balance at December 31, 2010	$	613.4	$	41.9	$	36.3		$	691.6

Additions from new business combinations (See Note 3)		172.4		31.3		22.4			226.1
Accruals of acquisition-related contingent consideration		15.6		—		—			15.6
Amortization expense		—		—		(9.7	)		(9.7	)

Balance at September 30, 2011	$	801.4	$	73.2	$	49.0		$	923.6

Information about estimated future amortization expense associated with amortizing intangible assets, including those associated with preliminary purchase price allocations, is summarized in the following table (in millions):


	Amortization Expense
Remainder of 2011	$	4.2
2012		11.3
2013		6.4
2014		4.6
2015		3.9
Thereafter		18.6

Total	$	49.0

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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