XML 218 R22.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Segments and Operations by Geographic Area | 6 Months Ended
--- | ---
Jun. 30, 2013
Segment Reporting [Abstract] |
Segments and Operations by Geographic Area | Segments and Operations by Geographic Area Segment Discussion MasTec presents its continuing operations under five reportable segments: (1) Communications; (2) Oil and Gas; (3) Electrical Transmission; (4) Power Generation and Industrial and (5) Other. This structure is generally focused on broad end-user markets for MasTec's labor-based construction services and has been determined in accordance with the criteria in Accounting Standards Codification ("ASC") 280, Segment Reporting. All five reportable segments derive their revenues from the engineering, installation and maintenance of infrastructure, primarily in North America. The Communications segment performs engineering, construction and maintenance of communications infrastructure primarily related to wireless and wireline communications and install-to-the-home, and to a lesser extent, infrastructure for electrical utilities. MasTec also performs engineering, construction and maintenance services on oil and natural gas pipelines and processing facilities for the energy and utilities industries through the Oil and Gas segment. The Electrical Transmission segment primarily serves the energy and utility industries through the engineering, construction and maintenance of electrical transmission lines and substations. The Power Generation and Industrial segment primarily serves the energy and utility end markets and other end markets through the installation and construction of power plants, wind farms, solar farms, related electrical transmission infrastructure, ethanol facilities and various types of industrial infrastructure. The Other category primarily includes small business units that perform construction services for a variety of end markets in Mexico and elsewhere internationally. The accounting policies of the reportable segments are the same as those described in Note 1 - Business, Basis of Presentation and Significant Accounting Policies. Intersegment revenues and costs are accounted for as if the revenues were to third parties because these items are based on negotiated fees between the segments involved. All intercompany transactions and balances are eliminated in consolidation; eliminations between segments are included in the Eliminations reconciling column in the tables below. Intrasegment revenues and costs between entities are eliminated to arrive at the segment totals. The Corporate column includes amounts related to Corporate functions such as administrative costs, professional fees, and acquisition costs. Segment results include certain allocations of centralized costs such as general liability, medical and workers' compensation insurance and information technology costs. Income tax expense is managed by Corporate on a consolidated basis and is not allocated to the reportable segments. Income from continuing operations before non-controlling interests before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. As appropriate, the Company supplements the reporting of consolidated financial information determined in accordance with U.S. GAAP with certain non-U.S. GAAP financial measures, including EBITDA. The Company believes these non-U.S. GAAP measures provide meaningful information that helps 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 versus its peers, because it excludes certain items that may not be indicative of the Company's reportable segment results, 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 continuing operations financial information for total MasTec in the following tables (in millions). As of and for the three months ended June 30, 2013:
| Communications |  | Oil and Gas |  | Electrical Transmission |  | Power Generation and Industrial |  | Other |  | Corporate |  | Eliminations |  |  | Continuing Operations for Consolidated MasTec
Revenue | $ | 496.6 |  |  | $ | 296.9 |  |  | $ | 118.6 |  |  | $ | 63.3 |  |  | $ | 3.4 |  |  | $ | — |  |  | $ | (1.2 | ) |  | $ | 977.6 |
EBITDA | $ | 63.4 |  |  | $ | 51.2 |  |  | $ | 11.5 |  |  | $ | (8.0 | ) |  | $ | 0.4 |  |  | $ | (15.8 | ) |  | $ | — |  |  | $ | 102.7 |
Depreciation | $ | 7.6 |  |  | $ | 16.1 |  |  | $ | 2.5 |  |  | $ | 1.2 |  |  | $ | — |  |  | $ | 0.9 |  |  | $ | — |  |  | $ | 28.3 |
Amortization | $ | 1.5 |  |  | $ | 3.0 |  |  | $ | 0.3 |  |  | $ | 0.5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5.3 |
As of and for the three months ended June 30, 2012:
| Communications |  | Oil and Gas |  | Electrical Transmission |  | Power Generation and Industrial |  | Other |  | Corporate |  | Eliminations |  |  | Continuing Operations for Consolidated MasTec
Revenue | $ | 431.9 |  |  | $ | 263.7 |  |  | $ | 88.9 |  |  | $ | 198.3 |  |  | $ | 6.2 |  |  | $ | — |  |  | $ | (0.1 | ) |  | $ | 988.9 |
EBITDA | $ | 47.0 |  |  | $ | 15.7 |  |  | $ | 12.1 |  |  | $ | 13.4 |  |  | $ | 0.8 |  |  | $ | (6.7 | ) |  | $ | 0.1 |  |  | $ | 82.4 |
Depreciation | $ | 6.8 |  |  | $ | 9.0 |  |  | $ | 1.4 |  |  | $ | 1.0 |  |  | $ | — |  |  | $ | 0.7 |  |  | $ | — |  |  | $ | 18.9 |
Amortization | $ | 0.4 |  |  | $ | 0.5 |  |  | $ | 1.2 |  |  | $ | 0.7 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2.8 |
As of and for the six months ended June 30, 2013:
| Communications |  | Oil and Gas |  | Electrical Transmission |  | Power Generation and Industrial |  | Other |  | Corporate |  | Eliminations |  |  | Continuing Operations for Consolidated MasTec
Revenue | $ | 921.6 |  |  | $ | 615.7 |  |  | $ | 203.1 |  |  | $ | 152.2 |  |  | $ | 5.7 |  |  | $ | — |  |  | $ | (2.0 | ) |  | $ | 1,896.3 |
EBITDA | $ | 109.8 |  |  | $ | 93.6 |  |  | $ | 14.9 |  |  | $ | (8.2 | ) |  | $ | 0.4 |  |  | $ | (34.3 | ) |  | $ | — |  |  | $ | 176.2 |
Depreciation | $ | 14.8 |  |  | $ | 32.5 |  |  | $ | 4.5 |  |  | $ | 2.4 |  |  | $ | — |  |  | $ | 1.7 |  |  | $ | — |  |  | $ | 55.9 |
Amortization | $ | 2.6 |  |  | $ | 5.2 |  |  | $ | 0.6 |  |  | $ | 1.0 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 9.4 |
As of and for the six months ended June 30, 2012:
| Communications |  | Oil and Gas |  | Electrical Transmission |  | Power Generation and Industrial |  | Other |  | Corporate |  | Eliminations |  |  | Continuing Operations for Consolidated MasTec
Revenue | $ | 821.0 |  |  | $ | 431.4 |  |  | $ | 153.3 |  |  | $ | 315.7 |  |  | $ | 6.6 |  |  | $ | — |  |  | $ | (0.9 | ) |  | $ | 1,727.1 |
EBITDA | $ | 79.8 |  |  | $ | 28.3 |  |  | $ | 20.5 |  |  | $ | 18.4 |  |  | $ | 0.6 |  |  | $ | (16.1 | ) |  | $ | — |  |  | $ | 131.5 |
Depreciation | $ | 13.0 |  |  | $ | 17.7 |  |  | $ | 2.8 |  |  | $ | 1.9 |  |  | $ | — |  |  | $ | 1.4 |  |  | $ | — |  |  | $ | 36.8 |
Amortization | $ | 0.9 |  |  | $ | 0.9 |  |  | $ | 2.6 |  |  | $ | 1.3 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5.7 |
Revenue generated from utilities customers represented 6.5% and 10.4% of Communications segment revenues for the three month periods ended June 30, 2013 and 2012, respectively, and 7.3% and 11.0% for the six month periods ended June 30, 2013 and 2012, respectively. The following table presents a reconciliation of EBITDA to consolidated income from continuing operations before provision for income taxes (in millions):
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
EBITDA | $ | 102.7 |  |  | $ | 82.4 |  |  | $ | 176.2 |  |  | $ | 131.5 |
Less: |  |  |  |  |  |  |
Interest expense, net | (11.8 | ) |  | (9.5 | ) |  | (21.9 | ) |  | (18.4 | )
Depreciation | (28.3 | ) |  | (18.9 | ) |  | (55.9 | ) |  | (36.8 | )
Amortization | (5.3 | ) |  | (2.8 | ) |  | (9.4 | ) |  | (5.7 | )
Income from continuing operations before provision for income taxes | $ | 57.3 |  |  | $ | 51.1 |  |  | $ | 89.0 |  |  | $ | 70.6 |
Foreign Operations. The Company has operations in Canada as well as in parts of Latin America and the Caribbean. The following table presents revenue by geographic area for the periods indicated (dollar amounts in millions):
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
Continuing operations: |  |  |  |  |  |  |
Derived from foreign operations | $ | 41.4 |  |  | $ | 37.7 |  |  | $ | 81.2 |  |  | $ | 100.0 |
Derived in the United States | 936.2 |  |  | 951.2 |  |  | 1,815.1 |  |  | 1,627.1 |
Revenue from continuing operations | $ | 977.6 |  |  | $ | 988.9 |  |  | $ | 1,896.3 |  |  | $ | 1,727.1 |
Discontinued operations: |  |  |  |  |  |  |
Derived from foreign operations | $ | 2.4 |  |  | $ | 1.0 |  |  | $ | 4.7 |  |  | $ | 2.7 |
Derived in the United States | 4.5 |  |  | 27.7 |  |  | 8.5 |  |  | 66.2 |
Revenue from discontinued operations | $ | 6.9 |  |  | $ | 28.7 |  |  | $ | 13.2 |  |  | $ | 68.9 |
The following table presents long-lived assets held in foreign countries, including property and equipment, net, and goodwill and intangible assets, net, as of the dates indicated (in millions):
| June 30, 2013 |  | December 31, 2012
Property and equipment, net, held in foreign countries: |  |  |
Classified within continuing operations | $ | 47.9 |  |  | $ | 11.4 |
Classified within long-term assets of discontinued operations | 1.6 |  |  | 1.5 |
Total property and equipment, net, held in foreign countries | $ | 49.5 |  |  | $ | 12.9 |
Goodwill and other intangible assets, net, held in foreign countries, classified within continuing operations | $ | 91.8 |  |  | $ | 30.5 |
Significant Customers Revenue concentration information for significant customers, as a percent of total consolidated revenue from continuing operations, is as follows:
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
Customer: |  |  |  |  |  |  |
AT&T | 21% |  | 17% |  | 20% |  | 18%
DIRECTV® | 15% |  | 15% |  | 15% |  | 17%
Enbridge, Inc. | 9% |  | —% |  | 10% |  | —%
The Company's relationship with AT&T is based upon master service agreements, other service agreements and construction/installation contracts for both AT&T's wireless and wireline infrastructure businesses. Revenue from AT&T is included in the Communications segment. The Company's relationship with DIRECTV® is based upon an agreement to provide installation and maintenance services for DIRECTV®. Revenue from DIRECTV® is included in the Communications segment. The Company's relationship with Enbridge, Inc. is based upon a construction contract for natural gas pipelines. Revenue from Enbridge, Inc. is included in the Oil and Gas segment.

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -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 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration