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Stock-Based Compensation and Other Employee Benefit Plans
 3 Months Ended
Mar. 31, 2014
Share-based Compensation [Abstract]  
Stock-Based Compensation and Other Employee Benefit Plans
Stock-Based Compensation and Other Employee Benefit Plans
The Company has certain stock-based compensation plans, under which stock options and restricted share awards are available for issuance or outstanding. Under stock-based compensation plans in effect as of March 31, 2014, there were a total of 6,243,047 shares available for grant or issuance.
Restricted Share Awards
MasTec grants restricted share awards, which are valued based on the market price of MasTec common stock on the date of grant. Total unearned compensation related to restricted share awards as of March 31, 2014 was approximately $24.3 million, which is expected to be recognized over a weighted average period of approximately 1.6 years. The total intrinsic value, or fair value, of restricted share awards that vested, which is based on the market price on the date of vesting, was $5.9 million and $0.7 million for the three month periods ended March 31, 2014 and 2013.
Activity, restricted share awards:
Restricted
Shares
 
Weighted Average Grant Date
Fair Value
Non-vested restricted shares, as of December 31, 2013
1,123,545

 
$
23.78

Granted
326,442

 
41.39

Vested
(141,138
)
 
19.41

Canceled/forfeited
(13,450
)
 
16.05

Non-vested restricted shares, as of March 31, 2014
1,295,399

 
$
28.77


Stock Options
The Company has granted options to purchase its common stock to employees and members of the Board of Directors and affiliates under various stock option plans at not less than the fair market value of the underlying stock on the date of grant. All outstanding stock options are fully vested.
Activity, stock options:
Stock 
Options
 
Per Share Weighted Average 
Exercise Price
 
Weighted Average
Remaining
Contractual Life (in years)
 
Aggregate Intrinsic
Value (a)  
(in millions)
Options outstanding as of December 31, 2013
495,571

 
$
11.17

 
1.96
 
$
10.7

Exercised
(200,900
)
 
9.77

 
 
 
 
Canceled/forfeited
—

 
—

 
 
 
 
Options outstanding as of March 31, 2014
294,671

 
$
12.13

 
2.04
 
$
9.2

Options exercisable as of March 31, 2014
294,671

 
$
12.13

 
2.04
 
$
9.2

(a)
Amount represents the difference between the exercise price and the market price of the Company’s stock on the last trading day of the corresponding period, multiplied by the number of in-the-money options.
The total intrinsic value of options exercised during the three month periods ended March 31, 2014 and 2013, which is based on the difference between the exercise price and the market price of the Company’s stock at the date of exercise, was $6.3 million and $3.5 million, respectively. Proceeds from options exercised during the three month periods ended March 31, 2014 and 2013 totaled $0.6 million and $1.9 million, respectively.
Employee Stock Purchase Plans
The Company's employee stock purchase plans allow qualified employees to purchase MasTec, Inc. common stock at 85% of the fair market value of the common stock at the lower of (i) the date of commencement of the offering period or (ii) the last day of the exercise period, as defined in the plan documents. The fair value of purchases under the Company's employee stock purchase plans is estimated using the Black-Scholes option-pricing valuation model.
 
Three Months Ended March 31,
Activity, employee stock purchase plan:
2014
 
2013
Cash proceeds (in millions)
$
0.8

 
$
0.9

Common shares issued
26,968

 
67,556

Weighted average price per share
$
27.81

 
$
13.19

Weighted average grant date fair value per share
$
6.59

 
$
5.00


Stock-Based Compensation Expense and Tax Benefits
Details of stock based compensation expense, which is included within general and administrative expense in the condensed unaudited consolidated statement of operations, and related tax benefits for the periods indicated are as follows (in millions):
 
Three Months Ended March 31,
 
2014
 
2013
Stock-based compensation expense
$
3.3

 
$
2.4

Income Tax Effects:
 
 
 
Income tax benefit from stock-based compensation
$
4.5

 
$
1.5

Excess tax benefit from stock-based compensation (a)
$
3.2

 
$
0.9

(a)
Excess tax benefits, which represent cash flows from tax deductions in excess of the recorded tax effect of compensation expense recognized for stock options exercised and vested restricted shares, are classified as financing cash flows in the Company’s condensed unaudited consolidated statements of cash flows.