Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Note 16 - Related Party Transactions

MasTec purchases, rents and leases equipment used in its business from a number of different vendors on a non-exclusive basis, including Cross Country Pipeline Supply, Inc. (“CCP”), in which the Company has a cost method investment of $15 million, resulting from its investment in CCP in 2013. 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 CCP. Additionally, an entity owned by Jorge, José and Juan Carlos Mas is a minority shareholder of CCP. For the three month periods ended September 30, 2015 and 2014, MasTec paid CCP approximately $4.8 million and $1.9 million, respectively, for equipment rentals, leases and servicing. For the nine month periods ended September 30, 2015 and 2014, MasTec paid CCP approximately $7.5 million and $4.6 million, respectively, for equipment rentals, leases and servicing.

MasTec leases employees to a customer in which Jorge Mas and José R. Mas own a minority interest. For both the three month periods ended September 30, 2015 and 2014, MasTec charged approximately $0.2 million to this customer. For the nine month periods ended September 30, 2015 and 2014, MasTec charged approximately $0.6 million and $0.5 million to this customer. As of both September 30, 2015 and December 31, 2014, outstanding receivables from employee leasing arrangements with this customer totaled $0.1 million. The Company also provides satellite communication services to this customer. For the three month periods ended September 30, 2015 and 2014, satellite communication revenue relating to this customer totaled approximately $0.2 million and $0.3 million, respectively. For the nine month periods ended September 30, 2015 and 2014, satellite communication revenues relating to this customer were approximately $0.7 million and $0.8 million, respectively. As of September 30, 2015 and December 31, 2014, outstanding receivables from this customer for satellite communication services totaled approximately $0.3 million and $0.5 million, respectively.

Split Dollar Agreements

MasTec has a split dollar agreement with José R. Mas, which became effective in August 2014 and replaced a prior split dollar and deferred bonus agreement. For the three month period ended September 30, 2015, the Company made no payments in connection with this agreement. For the nine month period ended September 30, 2015, the Company paid $0.7 million in connection with the split dollar agreement. For the three month period ended September 30, 2014, the Company paid approximately $0.7 million in connection with the split dollar agreement for José R. Mas, and for the nine month period ended September 30, 2014 the Company received approximately $0.1 million in proceeds from policies surrendered, net of premiums paid, in connection with the prior split dollar and deferred bonus agreements for José R. Mas. MasTec also has a split dollar agreement with Jorge Mas. The Company paid approximately $0.6 million and $1.1 million in connection with this agreement for the three and nine month periods ended September 30, 2015, respectively, and paid approximately $0.6 million and $1.1 million in connection with this agreement for the three and nine month periods ended September 30, 2014, respectively. As of September 30, 2015 and December 31, 2014, life insurance assets associated with these agreements totaled $13.0 million and $11.1 million respectively, and were included within other long-term assets in the consolidated balance sheets. For additional information regarding the split dollar agreements with José and Jorge Mas, see Note 18 - Related Party Transactions in the notes to the 2014 Form 10-K.