Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill And Other Intangible Assets [Abstract]

Note 4 - Goodwill and Other Intangible Assets

The following table sets forth information for MasTec's goodwill and intangible assets, including those associated with preliminary purchase price allocations, as of the dates indicated (in millions):


	2011			Weighted Average Amortization Period		2010			Weighted Average Amortization Period
Amortizing intangible assets: (1)
Gross carrying amount	$	97.6				$	75.2
Less: accumulated amortization		(52.9	)				(38.9	)

Amortizing intangible assets, net	$	44.7			14 years	$	36.3			14 years

Non-amortizing intangible assets:
Goodwill	$	807.9				$	613.4
Trade names		35.3					35.3
Pre-qualifications		31.3					—
Other		6.6					6.6

Non-amortizing intangible assets	$	881.1				$	655.3

Goodwill and other intangible assets	$	925.8				$	691.6

(1)	Consists principally of customer relationships, backlog, trade names and non-compete agreements with finite lives.

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


			Other Intangible Assets
	Goodwill		Non-amortizing		Amortizing			Total
Balance at December 31, 2009	$	504.2	$	41.9	$	49.3		$	595.4

Accruals of acquisition-related contingent consideration (a)		41.3							41.3
Settlement of multiple year earn-out (See Note 3)		67.0							67.0
Amortization expense						(13.0	)		(13.0	)
Other		0.9		—		—			0.9

Balance at December 31, 2010	$	613.4	$	41.9	$	36.3		$	691.6

Additions from new business combinations (See Note 3)		170.1		31.3		22.4			223.8
Accruals of acquisition-related contingent consideration (a)		24.4							24.4
Amortization expense						(14.0	)		(14.0	)

Balance at December 31, 2011	$	807.9	$	73.2	$	44.7		$	925.8

(a)	Represents contingent consideration for acquisitions prior to December 15, 2008.

Information about estimated future amortization expense associated with amortizing intangible assets, including those associated with preliminary purchase price allocations, is summarized in the following table (in millions):


	Amortization Expense
2012	$	11.4
2013		6.4
2014		4.6
2015		3.8
2016		3.2
Thereafter		15.3

Total	$	44.7

Management performs its annual impairment review of goodwill and certain intangible assets with indefinite lives during the fourth quarter each year at the reporting unit level. Assets of acquired businesses and related goodwill are allocated to the corresponding reporting units. Management identifies the Company's reporting units by assessing whether components holding purchased assets, including goodwill and related assumed liabilities, have discrete financial information available. To the extent that two or more components are deemed economically similar, those components are aggregated into one reporting unit for purposes of the Company's annual goodwill impairment review.

The Company's reporting units sell and provide contracting services, including building, installation, maintenance and upgrade services, primarily by digging and drilling trenches and installing poles, pipe, towers, antennae, wire, and equipment. Many of our reporting units perform these services across multiple industries, including telecommunications, utilities and government, and on behalf of a variety of customers, some of which contract services from multiple reporting units.

Management estimates the fair value of each reporting unit and compares the estimated fair value to its carrying value, including goodwill. If the carrying value exceeds the estimated fair value, the value of the reporting units' goodwill or other indefinite-lived intangible assets may be impaired and could require a write down. During the year ended December 31, 2011, the Company adopted ASU 2011-08, which permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the traditional two-step goodwill impairment test. Based on this analysis, none of the Company's reporting units were considered more likely than not to be impaired as of December 31, 2011. During each of the two years in the period ended December 31, 2010, management estimated the fair value of the Company's reporting units using a discounted cash flow methodology, which incorporates five-year projections of revenues, operating costs and cash flows considering historical and anticipated future results, general economic and market conditions, as well as the impact of planned business and operational strategies. Management applied a discounted cash flow technique utilizing a terminal value equal to 5.5 times year five EBITDA. The discount rate was estimated to be 8.5% per annum and represents the Company's estimated cost of capital at the time of the analysis. A 100 basis point change in the discount rate would not have had a material impact on the results of the impairment analysis. Based upon these analyses, the Company determined that the estimated fair values of the Company's reporting units substantially exceeded their carrying values for each of the three years ended in the period ended December 31, 2011.

- 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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