Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Note 3 - Goodwill and Other Intangible Assets

The following table provides details of goodwill by reportable segment as of June 30, 2017 (in millions):



	Communications		Oil and Gas			Electrical Transmission		Power Generation and Industrial		Total Goodwill
Goodwill, gross	$	463.1	$	382.2		$	149.9	$	117.6	$	1,112.8
Accumulated impairment losses	—		(72.5		)	—		—		(72.5		)
Goodwill, net	$	463.1	$	309.7		$	149.9	$	117.6	$	1,040.3

For the six month period ended June 30, 2017, additions to goodwill from new business combinations totaled $42.4 million. Currency translation effects related to goodwill and accumulated impairment losses totaled approximately $4.6 million of gains and $2.6 million of losses, respectively, for the six month period ended June 30, 2017. For the six month period ended June 30, 2016, additions to goodwill from accruals of acquisition-related contingent consideration totaled $5.8 million, and currency translation effects related to goodwill and accumulated impairment losses totaled $8.0 million of gains and $4.2 million of losses, respectively.

The following table provides a reconciliation of changes in other intangible assets for the period indicated (in millions):



	Other Intangible Assets
	Non-Amortizing				Amortizing
	Trade Names		Pre-Qualifications		Customer Relationships and Backlog			Other ^(a)			Total
Other intangible assets, gross, as of December 31, 2016	$	34.5	$	74.6	$	195.1		$	19.1		$	323.3
Accumulated amortization					(131.9		)	(11.7		)	(143.6		)
Other intangible assets, net, as of December 31, 2016	$	34.5	$	74.6	$	63.2		$	7.4		$	179.7
Additions from new business combinations	—		—		12.8			0.6			13.4
Amortization expense					(8.4		)	(0.6		)	(9.0		)
Currency translation adjustments	—		1.6		0.3			(0.1		)	1.8
Other intangible assets, net, as of June 30, 2017	$	34.5	$	76.2	$	67.9		$	7.3		$	185.9


(a)	Consists principally of trade names and non-compete agreements.

Amortization expense associated with intangible assets for the three month periods ended June 30, 2017 and 2016 totaled $4.9 million and $5.3 million, respectively, and for the six month periods ended June 30, 2017 and 2016, totaled $9.0 million and $10.5 million, respectively.

2017 Acquisitions. In April 2017, MasTec acquired a leading wireline/fiber deployment construction contractor with operations in several western states, predominantly servicing cable system operators, for an aggregate purchase price composed of approximately $38.2 million in cash and a five year earn-out, valued at $25.0 million, which is included in the Company’s Communications segment. As of June 30, 2017, determination of the estimated fair values of the net assets acquired and the estimated earn-out liability were preliminary, and further adjustments to these purchase accounting estimates may occur.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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