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Related Party Transactions | 3 Months Ended
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Mar. 31, 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 March 31, 2023 and 2022, such payments to related party entities totaled approximately $16.1 million and $6.8 million, respectively. Payables associated with such arrangements totaled approximately $3.9 million and $2.6 million as of March 31, 2023 and December 31, 2022, respectively. Revenue from such related party arrangements totaled approximately $2.2 million and $3.8 million for the three month periods ended March 31, 2023 and 2022, respectively, and related amounts receivable totaled approximately $3.5 million and $3.2 million as of March 31, 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. MasTec paid CCI $1.0 million for both the three month periods ended March 31, 2023 and 2022. Amounts payable to CCI totaled approximately $0.1 million and $0.6 million as of March 31, 2023 and December 31, 2022, respectively. MasTec has a leasing arrangement for an aircraft that is owned by an entity that Jorge Mas owns. For the three month periods ended March 31, 2023 and 2022, MasTec paid approximately $0.7 million and $0.6 million, respectively, related to this leasing arrangement. 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. For the three month period ended March 31, 2023, MasTec charged approximately $0.1 million under these arrangements, which amount was outstanding as of March 31, 2023. Payments for other expenses related to the Franchise for the three month periods ended March 31, 2023 and 2022 totaled approximately $0.4 million and $0.1 million, respectively. MasTec has a subcontracting arrangement to perform construction services for an entity, of which José R. Mas acquired a minority interest, and of which a member of management of a MasTec subsidiary owns the remaining interest. For the three month periods ended March 31, 2023 and 2022, revenue recognized by MasTec under this arrangement totaled approximately $41.8 million and $28.8 million, respectively, and as of March 31, 2023 and December 31, 2022, related amounts receivable totaled approximately $54.2 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 $0.5 million and $0.2 million for the three month periods ended March 31, 2023 and 2022, respectively. As of March 31, 2023 and December 31, 2022, related amounts receivable totaled approximately $0.2 million and $0.3 million, respectively. During the fourth quarter of 2022, Jorge Mas and José R. Mas sold their majority interest in a company which is a MasTec customer and to which MasTec previously leased employees and provided satellite communication services. For the three month period ended March 31, 2022, charges under the prior arrangements totaled approximately $0.3 million. As of both March 31, 2023 and December 31, 2022, related amounts receivable were de minimis. From time to time, the Company advances amounts to the former owners of acquired businesses. Such advances totaled approximately $0.1 million and $1.3 million, respectively, for the three month periods ended March 31, 2023 and 2022, and amounts receivable for such advances totaled approximately $2.1 million and $2.0 million as of March 31, 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 the three month period ended March 31, 2023, the Company made no equity contributions to this entity, and for the three month period ended March 31, 2022, equity contributions totaled approximately $0.5 million. As of both March 31, 2023 and December 31, 2022, the Company’s net investment in this entity was a liability of approximately $0.2 million, which net amount included approximately $2.3 million of accounts receivable, net, less deferred revenue, related to the subcontracting arrangement for both 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 March 31, 2023 and 2022. As of March 31, 2023 and December 31, 2022, related amounts receivable totaled $0.2 million and $0.4 million, respectively. 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. 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. There were no payments in connection with these agreements in either of the three month periods ended March 31, 2023 or 2022, and life insurance assets associated with these agreements totaled approximately $25.8 million as of both March 31, 2023 and December 31, 2022.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI https://asc.fasb.org/topic&trid=2122745 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 6 -URI https://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864 + Details
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