Segments and Related Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segments and Related Information

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 communications and install to the home, 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 the energy and utility end markets and other end markets through the installation and construction of 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 March 31,
Revenue:	2014		2013
Communications	$	447.1	$	424.9
Oil and Gas	379.8		318.8
Electrical Transmission	80.1		84.6
Power Generation and Industrial	54.2		88.9
Other	2.8		2.3
Eliminations	0.0		(0.9		)
Consolidated revenue	$	964.0	$	918.6

Revenue generated by utilities customers represented 7.0% and 8.3% of Communications segment revenue for the three month periods ended March 31, 2014 and 2013, respectively.

	For the Three Months Ended March 31,
EBITDA:	2014			2013
Communications	$	43.4		$	46.4
Oil and Gas	34.9			42.4
Electrical Transmission	3.5			3.4
Power Generation and Industrial	0.5			(0.2		)
Other	0.2			0.1
Corporate	(10.9		)	(18.6		)
Consolidated EBITDA	$	71.6		$	73.5

	For the Three Months Ended March 31,
Depreciation and Amortization:	2014		2013
Communications	$	9.9	$	8.2
Oil and Gas	18.1		18.7
Electrical Transmission	2.8		2.3
Power Generation and Industrial	1.5		1.7
Corporate	1.2		0.9
Consolidated Depreciation and Amortization	$	33.5	$	31.8

The following table presents a reconciliation of EBITDA to consolidated income from continuing operations before income taxes (in millions):

	For the Three Months Ended March 31,
EBITDA Reconciliation:	2014			2013
EBITDA	$	71.6		$	73.5
Less:
Interest expense, net	(12.0		)	(10.0		)
Depreciation and amortization	(33.5		)	(31.8		)
Income from continuing operations before income taxes	$	26.1		$	31.7

Foreign Operations. MasTec operates throughout North America, primarily in the United States and Canada, as well as in parts of Latin America. For the three months ended March 31, 2014 and 2013, revenues of $837.9 million and $878.9 million, respectively, were derived in the United States, and $126.1 million and $39.7 million, respectively, were derived from foreign operations. Long-lived assets held in the United States include property and equipment, net, of $461.8 million and $436.9 million as of March 31, 2014 and December 31, 2013, respectively. Long-lived assets held in foreign countries, primarily in Canada, include property and equipment, net, of $47.8 million and $51.2 million as of March 31, 2014 and December 31, 2013, respectively. Intangible assets and goodwill, net of $995.8 million and $973.3 million as of March 31, 2014 and December 31, 2013, respectively, relate to businesses in the United States. Intangible assets and goodwill, net, of $88.6 million and $92.7 million as of March 31, 2014 and December 31, 2013, respectively, relate to businesses in foreign countries.

Significant Customers

Revenue concentration information for significant customers as a percent of total consolidated revenue was as follows:

	For the Three Months Ended March 31,
	2014	2013
Customer:
AT&T	22%	18%
DIRECTV®	14%	16%
Enbridge, Inc.	14%	12%

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 and home security and automation businesses. Revenue from AT&T is included in the Communications segment.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.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.