XML 54 R8.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Earnings Per Share | 3 Months Ended
--- | ---
Mar. 31, 2013
Earnings Per Share [Abstract] |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing earnings available to MasTec’s common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing earnings by the number of fully diluted shares, which includes the effect of dilutive potential issuances of common shares, as determined using earnings from continuing operations. Potentially dilutive common shares include outstanding stock options and unvested restricted share awards, as calculated under the treasury stock method, as well as shares associated with the Company’s outstanding convertible debt securities. The following table provides details of the Company’s earnings per share calculations for the periods indicated (in thousands, except per share amounts). The table below may contain summation differences due to rounding.
| For the Three Months Ended March 31,
| 2013 |  | 2012
Basic |  |  |
Net income attributable to MasTec: |  |  |
Net income from continuing operations | $ | 19,317 |  |  | $ | 11,695 |
Net (loss) income from discontinued operations | (947 | ) |  | 2,477 |
Basic net income attributable to MasTec | $ | 18,370 |  |  | $ | 14,172 |
Weighted average shares outstanding | 76,608 |  |  | 80,615 |
Basic earnings (loss) per share: |  |  |
Continuing operations | $ | 0.25 |  |  | $ | 0.15 |
Discontinued operations | (0.01 | ) |  | 0.03 |
Total basic earnings per share | $ | 0.24 |  |  | $ | 0.18 |
Diluted |  |  |
Net income attributable to MasTec: |  |  |
Basic net income from continuing operations | $ | 19,317 |  |  | $ | 11,695 |
Interest expense on Original 4.0% Notes, net of tax | 58 |  |  | 58 |
Interest expense on Original 4.25% Notes, net of tax | 19 |  |  | 19 |
Diluted net income from continuing operations | $ | 19,394 |  |  | $ | 11,772 |
Net (loss) income from discontinued operations | (947 | ) |  | 2,477 |
Diluted net income attributable to MasTec | $ | 18,447 |  |  | $ | 14,249 |
Shares: |  |  |
Basic weighted average shares outstanding | 76,608 |  |  | 80,615 |
Dilutive common stock equivalents | 785 |  |  | 813 |
Dilutive premium shares, New 4.0% Notes | 3,010 |  |  | 809 |
Dilutive premium shares, New 4.25% Notes | 2,885 |  |  | 858 |
Dilutive shares, Original 4.0% Notes | 612 |  |  | 612 |
Dilutive shares, Original 4.25% Notes | 194 |  |  | 194 |
Diluted weighted average shares outstanding | 84,094 |  |  | 83,901 |
Diluted earnings (loss) per share: |  |  |
Continuing operations | $ | 0.23 |  |  | $ | 0.14 |
Discontinued operations | (0.01 | ) |  | 0.03 |
Total diluted earnings per share | $ | 0.22 |  |  | $ | 0.17 |
There were no weighted average anti-dilutive common stock equivalents from restricted share awards for the three months ended March 31, 2013. For the three month periods ended March 31, 2012, a total of 10,962 weighted average anti-dilutive common stock equivalents from restricted share awards were not included in the Company’s diluted earnings per share calculations. The Company’s Board of Directors authorized a $150 million share repurchase plan in 2011, under which the Company repurchased 4.6 million shares of common stock for $75.0 million during the year ended December 31, 2011. During the year ended December 31, 2012, the Company repurchased an additional 4.9 million shares under this plan for an aggregate purchase price of $75.0 million, which completed the share repurchase plan. The repurchased shares are held in the Company’s treasury. Senior Convertible Notes – Diluted Share Impact The Company has $215 million of outstanding convertible notes, including $105.3 million of new 4.0% senior convertible notes (the “New 4.0% Notes”) and $97.0 million of new 4.25% senior convertible notes (the “New 4.25% Notes” and, together with the New 4.0% Notes, the “New Convertible Notes”). The Company also holds $9.6 million of original 4.0% senior convertible notes and $3.0 million of original 4.25% senior convertible notes, (the “Original 4.0% Notes” and the “Original 4.25% Notes,” respectively and, collectively, the “Original Convertible Notes”). The New Notes have an optional physical (common share), cash or combination settlement feature and contain certain conditional conversion features. Due to the optional cash settlement feature and management’s intent to settle the principal amount thereof plus accrued interest in cash, the conversion shares underlying the outstanding principal amount of the New Convertible Notes, totaling approximately 13.0 million shares, are not required to be included in the Company’s diluted share count. If, however, the Company’s average stock price per share during the corresponding periods exceeds the $15.76 conversion price for the New 4.0% Notes or the $15.48 conversion price for the New 4.25% Notes, the weighted average of the resulting value in excess of the principal amount, converted to shares at the market price, is included in the Company’s weighted average diluted share count (“premium shares”). See Note 10 - Debt of the Company's consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2012. The number of common shares issuable upon conversion of the Company’s Original Notes is reflected in the calculation of weighted average diluted earnings per share for the corresponding periods by application of the “if-converted” method to the extent their effect on the computation of earnings per share from continuing operations is dilutive. Under the “if-converted” method, net income from continuing operations is adjusted to add back the after-tax amount of interest recognized in the period associated with the convertible notes, and correspondingly, the convertible notes are assumed to have been converted with the resulting common shares added to weighted average shares outstanding. The following table, which may contain summation differences due to rounding, summarizes the principal amounts of the Company’s outstanding convertible notes for the periods indicated, including their respective classification within the computation of earnings per share for each period (in millions):
| For the Three Months Ended March 31,
| 2013 |  | 2012
Dilutive: |  |  |
New 4.0% Notes (1) | $ | 105.3 |  |  | $ | 105.3 |
New 4.25% Notes (1) | 97.0 |  |  | 97.0 |
Original 4.0% Notes (2) | 9.6 |  |  | 9.7 |
Original 4.25% Notes (2) | 3.0 |  |  | 3.0 |
Total principal amount, dilutive outstanding convertible notes | $ | 215.0 |  |  | $ | 215.0 |
(1)Dilutive shares associated with the New Convertible Notes are attributable to the premium over the respective conversion prices. (2)Dilutive shares associated with the Original Convertible Notes are attributable to the underlying principal amounts. The Company’s average stock price for the three month periods ended March 31, 2013 and 2012 exceeded the conversion prices of the New Convertible Notes. The number of premium shares included in the Company’s diluted share count varies with fluctuations in the Company’s actual share price for the related periods. Higher share prices result in a greater number of equivalent premium shares. Details of the calculation underlying the number of premium shares included in the Company’s diluted share count for the periods indicated are as follows (in thousands, except per share amounts):
| As of and for the Three Months Ended March 31, 2013 |  | As of and for the Three Months Ended March 31, 2012
| New 4.0% Notes |  | New 4.25% Notes |  | New 4.0% Notes |  | New 4.25% Notes
Principal amount | $ | 105,322 |  |  | $ | 97,000 |  |  | $ | 105,322 |  |  | $ | 97,000 |
Conversion price per share | $ | 15.76 |  |  | $ | 15.48 |  |  | $ | 15.76 |  |  | $ | 15.48 |
Number of conversion shares, principal amount | 6,683 |  |  | 6,268 |  |  | 6,683 |  |  | 6,268 |
Weighted average actual per share price | $ | 28.68 |  |  | $ | 28.68 |  |  | $ | 17.93 |  |  | $ | 17.93 |
Excess over principal amount | $ | 86,316 |  |  | $ | 82,735 |  |  | $ | 14,512 |  |  | $ | 15,390 |
Weighted average equivalent premium shares | 3,010 |  |  | 2,885 |  |  | 809 |  |  | 858 |
See Note 14 - Common Stock Activity.

X
- Details
Name: | us-gaap_EarningsPerShareAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for earnings per share. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1252-109256 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 55 -Paragraph 52 -URI http://asc.fasb.org/extlink&oid=16381557&loc=d3e4984-109258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1278-109256 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.21) -URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688 + Details
Name: | us-gaap_EarningsPerShareTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration