Lease Obligations

12 Months Ended

Dec. 31, 2013

Capital Leases

MasTec enters into agreements that provide financing for machinery and equipment, which expire on various dates. Leases meeting certain criteria are capitalized, with the related asset recorded in property and equipment and a corresponding amount recorded as a liability. Capital lease additions are reflected in the consolidated statements of cash flows within the supplemental disclosures of non-cash information. The gross amount of assets held under capital lease as of December 31, 2013 and 2012 totaled $199.0 million and $123.2 million, respectively. Assets held under capital lease, net of accumulated depreciation, totaled $143.5 million and $83.0 million as of December 31, 2013 and 2012, respectively.

Operating Leases

In the ordinary course of business, the Company enters into non-cancelable operating leases for certain of its facility, vehicle and equipment needs, including related party leases. These leases allow the Company to conserve cash and provide flexibility in that the Company pays a monthly rental fee for the use of related facilities, vehicles and equipment rather than purchasing them. The terms of these agreements vary from lease to lease, including some with renewal options and escalation clauses. The Company may decide to cancel or terminate a lease before the end of its term, in which case the Company is typically liable for the remaining lease payments under the term of the lease. For operating leases with purchase options, the option to purchase equipment is at estimated fair market value. Rent expense relating to operating leases, including short term rentals, reflected within continuing operations, was approximately $253.4 million, $222.5 million and $168.8 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Future Lease Commitments

Future minimum lease commitments under capital leases and non-cancelable operating leases, including the effect of escalation clauses in effect as of December 31, 2013, were as follows (in millions):



	Capital Leases			Operating Leases
2014	$	44.1		$	54.3
2015	35.6			43.8
2016	27.1			25.0
2017	19.5			12.0
2018	6.9			5.2
Thereafter	0.9			5.3
Total minimum lease payments	$	134.1		$	145.6
Less amounts representing interest	(8.1		)
Total capital lease obligations, net of interest	$	126.0
Less current portion	(41.3		)
Long term portion of capital lease obligations, net of interest	$	84.7

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

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