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Segments and Related Information
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Segments and Related Information
Note 15 - Segments and Related Information    
Segment Discussion
MasTec presents its continuing operations in 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 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/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 small business units that perform construction services for a variety of end markets in 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 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 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.

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):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
Revenue:
2014
 
2013
 
2014
 
2013
Communications (a)
$
505.2

 
$
543.0

 
$
1,480.4

 
$
1,464.5

Oil and Gas
557.4

 
519.1

 
1,302.9

 
1,134.8

Electrical Transmission
132.6

 
118.8

 
327.2

 
321.9

Power Generation and Industrial
114.3

 
85.1

 
263.1

 
237.3

Other
1.1

 
3.5

 
6.5

 
9.2

Eliminations
(1.0
)
 
(0.1
)
 
(1.9
)
 
(2.0
)
Consolidated revenue
$
1,309.6

 
$
1,269.4

 
$
3,378.2

 
$
3,165.7

(a)
Revenue generated by utilities customers represented 7.6% and 6.9% of Communications segment revenue for the three month periods ended September 30, 2014 and 2013, respectively, and 7.0% and 7.2% of Communications segment revenue for the nine month periods ended September 30, 2014 and 2013, respectively.
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
EBITDA:
2014
 
2013
 
2014
 
2013
Communications
$
52.4

 
$
71.8

 
$
153.7

 
$
181.6

Oil and Gas
73.0

 
68.1

 
143.5

 
161.7

Electrical Transmission
12.7

 
12.1

 
33.2

 
27.0

Power Generation and Industrial
4.9

 
(6.4
)
 
9.4

 
(14.6
)
Other
(0.3
)
 
0.1

 
0.1

 
0.5

Corporate
(14.5
)
 
(13.6
)
 
(38.7
)
 
(47.9
)
Consolidated EBITDA
$
128.2

 
$
132.1

 
$
301.2

 
$
308.3


 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
Depreciation and Amortization:
2014
 
2013
 
2014
 
2013
Communications
$
10.1

 
$
9.5

 
$
30.1

 
$
26.8

Oil and Gas
23.3

 
22.5

 
61.3

 
60.1

Electrical Transmission
5.2

 
3.2

 
11.9

 
8.4

Power Generation and Industrial
1.7

 
1.7

 
4.8

 
5.1

Corporate
1.4

 
0.9

 
3.9

 
2.7

Consolidated Depreciation and Amortization
$
41.7

 
$
37.8

 
$
112.0

 
$
103.1



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,
EBITDA Reconciliation:
2014
 
2013
 
2014
 
2013
EBITDA
$
128.2

 
$
132.1

 
$
301.2

 
$
308.3

Less:
 
 
 
 
 
 
 
Interest expense, net
(12.6
)
 
(12.7
)
 
(37.6
)
 
(34.5
)
Depreciation and amortization
(41.7
)
 
(37.8
)
 
(112.0
)
 
(103.1
)
Income from continuing operations before income taxes
$
73.8

 
$
81.6

 
$
151.7

 
$
170.6


Foreign Operations. MasTec operates throughout North America, primarily in the U.S. and Canada, as well as in parts of Latin America. For the three month periods ended September 30, 2014 and 2013, revenues of $1.1 billion and $1.2 billion, respectively, were derived from U.S. operations, and $219.4 million and $90.9 million, respectively, were derived from foreign operations, primarily in Canada. For the nine month periods ended September 30, 2014 and 2013, revenues of $2.9 billion and $3.0 billion, respectively, were derived from U.S. operations, and $460.0 million and $172.0 million, respectively, were derived from foreign operations, primarily in Canada. Long-lived assets held in the U.S. included property and equipment, net, of $497.6 million and $436.9 million as of September 30, 2014 and December 31, 2013, respectively. Long-lived assets held in foreign countries, primarily in Canada, included property and equipment, net, of $116.8 million and $51.2 million as of September 30, 2014 and December 31, 2013, respectively. Intangible assets and goodwill, net, of approximately $1.0 billion as of both September 30, 2014 and December 31, 2013 related to the Company's U.S. operations. Intangible assets and goodwill, net, of approximately $211.5 million and $92.9 million as of September 30, 2014 and December 31, 2013, respectively, related to businesses in foreign countries, primarily in Canada.
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,
 
2014
 
2013
 
2014
 
2013
Customer:
 
 
 
 
 
 
 
AT&T (a)
16%
 
16%
 
21%
 
18%
DIRECTV® (b)
12%
 
13%
 
13%
 
15%
Enbridge, Inc. (c)
10%
 
20%
 
10%
 
14%
(a)
The Company's relationship with AT&T is based upon master service agreements, other service agreements and construction/installation contracts for AT&T's wireless, wireline/fiber and home security and automation businesses. Revenue from AT&T is included in the Communications segment.
(b)
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.
(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.