XML 79 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock-Based Compensation and Other Employee Benefit Plans
 3 Months Ended
Mar. 31, 2013
Share-based Compensation [Abstract]  
Stock-Based Compensation and Other Employee Benefit Plans
Stock-Based Compensation and Other Employee Benefit Plans
The Company has certain stock-based compensation plans with stock options and restricted share awards outstanding as of March 31, 2013. Under plans currently in effect, there were a total of 3,821,690 shares available for grant as of March 31, 2013.
Restricted Share Awards
MasTec grants restricted share awards, which are valued based on the market price of MasTec common stock on the date of grant. Total unearned compensation related to restricted share awards as of March 31, 2013 was approximately $9.4 million, which is expected to be recognized over a weighted average period of approximately 2 years. The total intrinsic value, or fair value, of restricted share awards that vested, which is based on the market price on the date of vesting, was $0.7 million and $0.2 million for the three month periods ended March 31, 2013 and 2012, respectively.
Following is a summary of restricted share award activity during the periods indicated:
 
Restricted
Shares
 
Weighted Average  
Grant Date
Fair Value
Non-vested restricted shares, as of December 31, 2011
716,780

 
$
14.45

Granted
139,353

 
18.55

Vested
(12,892
)
 
14.60

Canceled/forfeited
(9,000
)
 
15.08

Non-vested restricted shares, as of March 31, 2012
834,241

 
$
15.12

 
 
 
 
Non-vested restricted shares, as of December 31, 2012
792,396

 
$
19.07

Granted
21,267

 
27.10

Vested
(23,767
)
 
20.35

Canceled/forfeited
—

 
—

Non-vested restricted shares, as of March 31, 2013
789,896

 
$
19.24



Stock Options
The Company has granted options to purchase its common stock to employees and members of the Board of Directors and affiliates under various stock option plans at not less than the fair market value of the underlying stock on the date of grant. No stock options have been granted since 2006.
The following is a summary of stock option activity during the periods indicated:
 
Stock 
Options
 
Weighted Average 
Exercise Price
 
Weighted Average
Remaining
Contractual Life (years)
 
Aggregate Intrinsic
Value (1)  
(in millions)
Options outstanding as of December 31, 2011
1,445,774

 
$
10.25

 
3.16
 
$
10.3

Exercised
(20,000
)
 
5.37

 
 
 
 
Canceled/forfeited
—

 
—

 
 
 
 
Options outstanding as of March 31, 2012
1,425,774

 
$
10.32

 
2.97
 
$
11.1

Options exercisable as of March 31, 2012
1,425,774

 
$
10.32

 
2.97
 
$
11.1

 
 
 
 
 
 
 
 
Options outstanding as of December 31, 2012
1,053,825

 
$
10.55

 
2.31
 
$
15.2

Exercised
(194,200
)
 
10.02

 
 
 
 
Canceled/forfeited
—

 
—

 
 
 
 
Options outstanding as of March 31, 2013
859,625

 
$
10.66

 
2.06
 
$
15.9

Options exercisable as of March 31, 2013
859,625

 
$
10.66

 
2.06
 
$
15.9

(1)
Amount represents the difference between the exercise price and the market price of the Company’s stock on the last trading day of the corresponding period, multiplied by the number of in-the-money options.
The total intrinsic value of options exercised during the three month periods ended March 31, 2013 and 2012, which is based on the difference between the exercise price and the market price of the Company’s stock at the date of exercise, was $3.5 million and $0.3 million, respectively. Proceeds from options exercised during the three month periods ended March 31, 2013 and 2012 totaled $1.9 million and $0.1 million, respectively.
Stock Based Compensation Expense and Related Tax Benefit (Expense)
     Details of stock based compensation expense and related tax benefit (expense) for the periods indicated are as follows (in millions):
 
For the Three Months Ended March 31,
 
2013
 
2012
Stock based compensation expense:
 
 
 
Restricted share awards and other
$
2.4

 
$
1.0

Stock options
—

 
—

Total stock based compensation expense
$
2.4

 
$
1.0

Income tax benefit (expense) from stock based compensation:
 
 
 
Restricted share awards and other
$
0.7

 
$
0.4

Stock options
0.8

 
0.1

Total income tax benefit (expense) from stock based compensation
$
1.5

 
$
0.5

Excess tax benefit from stock based compensation:
 
 
 
Vested restricted shares and other (1)
$
0.1

 
$
—

Stock options exercised (1)
0.8

 
0.1

Total excess tax benefit from stock based compensation (1)
$
0.9

 
$
0.1

(1)
Excess tax benefits, which represent cash flows from tax deductions in excess of the tax effect of compensation expense recognized for stock options exercised and vested restricted shares, are classified as financing cash flows in the Company’s condensed unaudited consolidated statements of cash flows.