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Segments and Related Information | 9 Months Ended
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Sep. 30, 2015
Segment Reporting [Abstract] |
Segments and Related Information | Note 14 - Segments and Related Information Segment Discussion MasTec manages its continuing operations under five operating segments, which represent MasTec’s 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. All five reportable segments derive their revenue from the engineering, installation and maintenance of infrastructure, primarily in North America. In the first quarter of 2015, the Company reevaluated the activities of a non-controlled Canadian joint venture associated with a 2014 acquisition. Accordingly, segment information for prior periods has been adjusted retrospectively to conform to the current period presentation. The reclassified amounts were not material in the periods previously presented. See Note 16 - Segments and Related Information in the Company’s 2014 Form 10-K for additional details. The Communications segment performs engineering, construction and maintenance of communications infrastructure primarily related to wireless and wireline/fiber communications and install-to-the-home customers, and, to a lesser extent, infrastructure for electrical utilities. MasTec performs engineering, construction and maintenance services on oil and natural gas pipelines and processing facilities for the energy and utilities industries through its Oil and Gas segment. The Electrical Transmission segment primarily serves the energy and utility industries through the engineering, construction and maintenance of electrical transmission lines and substations. The Power Generation and Industrial segment primarily serves energy, utility and other end-markets through the installation and construction of conventional and renewable power facilities, related electrical transmission infrastructure, ethanol facilities and various types of industrial infrastructure. The Other segment primarily includes a proportionately consolidated joint venture and other small business units that perform construction services for a variety of end-markets in Canada, Mexico and elsewhere internationally. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. As appropriate, the Company supplements the reporting of consolidated financial information determined in accordance with U.S. GAAP with certain non-U.S. GAAP financial measures, including EBITDA. The Company believes these non-U.S. GAAP measures provide meaningful information and help investors in understanding the Company’s financial results and in assessing its prospects for future performance. The Company uses EBITDA to evaluate its performance, both internally and versus that of 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. For the three and nine month periods ended September 30, 2015: (i) Communications segment EBITDA included $1.2 million and $17.8 million, respectively, of acquisition integration costs resulting from the WesTower acquisition; (ii) Electrical Transmission segment EBITDA included a $12.2 million charge relating to a court mandated mediation settlement; (iii) Other segment EBITDA included $2.8 million and $8.3 million, respectively, of project losses on a non-controlled proportionately consolidated Canadian joint venture; (iv) Corporate segment EBITDA included $4.1 million and $14.6 million, respectively, of Audit Committee independent investigation related costs; and (v) Power Generation and Industrial segment EBITDA included $3.8 million and $21.4 million, respectively, of losses on a Canadian wind project. Summarized financial information for MasTec’s reportable segments is presented and reconciled to consolidated financial information for total MasTec in the following tables (in millions):
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Revenue: |  |  | As Restated |  |  |  | As Restated
Communications (a) | $ | 513.3 |  |  | $ | 505.2 |  |  | $ | 1,452.1 |  |  | $ | 1,480.4 |
Oil and Gas | 406.9 |  |  | 554.4 |  |  | 1,144.2 |  |  | 1,299.3 |
Electrical Transmission | 75.9 |  |  | 138.4 |  |  | 270.2 |  |  | 329.1 |
Power Generation and Industrial | 115.0 |  |  | 114.3 |  |  | 302.3 |  |  | 263.1 |
Other | 3.8 |  |  | 4.1 |  |  | 17.2 |  |  | 10.6 |
Eliminations | (3.9 | ) |  | (0.9 | ) |  | (5.1 | ) |  | (2.0 | )
Consolidated revenue | $ | 1,111.0 |  |  | $ | 1,315.5 |  |  | $ | 3,180.9 |  |  | $ | 3,380.5 |
(a) | Revenue generated by utilities customers represented 11.2% and 7.6% of Communications segment revenue for the three month periods ended September 30, 2015 and 2014, respectively, and represented 10.5% and 7.0% for the nine month periods ended September 30, 2015 and 2014, respectively.
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
EBITDA - Continuing Operations: |  |  | As Restated |  |  |  | As Restated
Communications | $ | 49.7 |  |  | $ | 52.5 |  |  | $ | 141.8 |  |  | $ | 153.7 |
Oil and Gas | 51.0 |  |  | 73.4 |  |  | 113.9 |  |  | 144.2 |
Electrical Transmission | (23.7 | ) |  | 18.5 |  |  | (47.6 | ) |  | 35.1 |
Power Generation and Industrial | 4.8 |  |  | 4.9 |  |  | 3.9 |  |  | 9.4 |
Other | (2.0 | ) |  | (0.7 | ) |  | (7.1 | ) |  | (0.1 | )
Corporate | (12.0 | ) |  | (14.4 | ) |  | (40.5 | ) |  | (38.7 | )
Consolidated EBITDA - Continuing operations | $ | 67.8 |  |  | $ | 134.2 |  |  | $ | 164.4 |  |  | $ | 303.6 |
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
Depreciation and Amortization: | 2015 |  | 2014 |  | 2015 |  | 2014
Communications | $ | 13.2 |  |  | $ | 10.1 |  |  | $ | 37.6 |  |  | $ | 30.1 |
Oil and Gas | 20.0 |  |  | 23.3 |  |  | 64.3 |  |  | 61.3 |
Electrical Transmission | 5.5 |  |  | 5.2 |  |  | 16.0 |  |  | 11.9 |
Power Generation and Industrial | 1.7 |  |  | 1.7 |  |  | 5.0 |  |  | 4.8 |
Other | 0.0 |  |  | 0.0 |  |  | 0.1 |  |  | 0.0 |
Corporate | 1.8 |  |  | 1.4 |  |  | 5.0 |  |  | 3.9 |
Consolidated depreciation and amortization | $ | 42.2 |  |  | $ | 41.7 |  |  | $ | 128.0 |  |  | $ | 112.0 |
The following table presents a reconciliation of EBITDA to consolidated income from continuing operations before income taxes (in millions):
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
EBITDA Reconciliation: |  |  | As Restated |  |  |  | As Restated
EBITDA - Continuing operations | $ | 67.8 |  |  | $ | 134.2 |  |  | $ | 164.4 |  |  | $ | 303.6 |
Less: |  |  |  |  |  |  |
Interest expense, net | (12.0 | ) |  | (12.6 | ) |  | (35.8 | ) |  | (37.6 | )
Depreciation and amortization | (42.2 | ) |  | (41.7 | ) |  | (128.0 | ) |  | (112.0 | )
Income from continuing operations before income taxes | $ | 13.6 |  |  | $ | 79.8 |  |  | $ | 0.5 |  |  | $ | 154.0 |
Foreign Operations. MasTec operates in North America, primarily in the United States and Canada, as well as in Mexico and in other countries in Latin America. For the three month periods ended September 30, 2015 and 2014, revenue of $1.0 billion and $1.1 billion, respectively, was derived from U.S. operations, and revenue of $115.2 million and $219.7 million, respectively, was derived from foreign operations, primarily in Canada. For the nine month periods ended September 30, 2015 and 2014, revenue of $2.7 billion and $2.9 billion, respectively, was derived from U.S. operations, and revenue of $451.2 million and $460.3 million, respectively, was derived from foreign operations, primarily in Canada. The majority of the Company’s foreign operations during the three and nine month periods ended September 30, 2015 and 2014 were in the Company’s Oil and Gas segment. Long-lived assets held in the United States included property and equipment, net, of $482.4 million and $494.1 million as of September 30, 2015 and December 31, 2014, respectively. Long-lived assets held in foreign countries, primarily in Canada, included property and equipment, net, of $104.6 million and $129.0 million as of September 30, 2015 and December 31, 2014, respectively. As of both September 30, 2015 and December 31, 2014 intangible assets and goodwill, net, totaled approximately $1.1 billion related to the Company’s U.S. operations. Intangible assets and goodwill, net, of approximately $193.9 million and $227.7 million as of September 30, 2015 and December 31, 2014, respectively, related to businesses in foreign countries, primarily in Canada. Foreign customers accounted for approximately 16% and 20% of the Company’s consolidated net accounts receivable position, which represents accounts receivable, net, less billings in excess of costs and earnings, as of September 30, 2015 and December 31, 2014, respectively. Significant Customers Revenue concentration information for significant customers as a percentage of total consolidated revenue was as follows:
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Customer: |  |  | As Restated |  |  |  | As Restated
AT&T (including DIRECTV®) (a)(b) | 31% |  | 28% |  | 31% |  | 33%
Enbridge, Inc. (c) | 0% |  | 10% |  | 1% |  | 10%
(a) | The Company’s relationship with AT&T is based upon multiple separate master service agreements, other service agreements and construction/installation contracts for AT&T’s (i) wireless, (ii) wireline/fiber, (iii) home security and automation businesses, and (iv) for DIRECTV® services, is based upon an agreement to provide installation and maintenance services. Revenue from AT&T is included in the Communications segment.
(b) | DIRECTV® was acquired by AT&T in July 2015. Revenue from DIRECTV® is presented on a combined basis with AT&T for all periods.
(c) | The Company’s relationship with Enbridge, Inc. is based upon various construction contracts for natural gas pipelines. Revenue from Enbridge, Inc. is included in the Oil and Gas segment.

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- 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 Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: 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=51669610&loc=d3e9038-108599 Reference 3: 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=51669610&loc=d3e8971-108599 Reference 4: 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=51669610&loc=d3e8595-108599 Reference 5: 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=51669610&loc=d3e8380-108599 Reference 6: 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=51669610&loc=d3e8933-108599 Reference 7: 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=51669610&loc=d3e8844-108599 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=51669610&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 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: 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=51669610&loc=d3e9054-108599 Reference 11: 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=51669610&loc=d3e8538-108599 Reference 12: 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=51669610&loc=d3e8864-108599 Reference 13: 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=51669610&loc=d3e8924-108599 Reference 14: 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=51669610&loc=d3e8906-108599 + Details
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