Note 20 – Supplemental Guarantor Condensed Consolidating Financial Information

The 4.875% Senior Notes are, and the 2011 Convertible Notes and 2009 Convertible Notes through the dates of their maturity in 2014 were, fully and unconditionally guaranteed on an unsecured, unsubordinated, joint and several basis by certain of the Company’s existing and future 100%-owned direct and indirect domestic subsidiaries that are each guarantors of the Credit Facility or other outstanding indebtedness (the “Guarantor Subsidiaries”). The Company’s subsidiaries organized outside of the U.S. and certain domestic subsidiaries (collectively, the “Non-Guarantor Subsidiaries”) do not guarantee any of these notes. A Guarantor Subsidiary’s guarantee is subject to release in certain customary circumstances, including upon the sale of a majority of the capital stock or substantially all of the assets of such Guarantor Subsidiary; if the Guarantor Subsidiary’s guarantee under the Company’s Credit Facility and other indebtedness is released or discharged (other than due to payment under such guarantee); or when the requirements for legal defeasance are satisfied or the obligations are discharged in accordance with the related indentures.

The following supplemental financial information sets forth the condensed consolidating balance sheets and the condensed consolidating statements of operations and comprehensive income and cash flows for the parent company (MasTec, Inc.), the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis and the eliminations necessary to arrive at the information for the Company as reported on a consolidated basis. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions between or among MasTec, Inc., the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries. Investments in subsidiaries are accounted for using the equity method for this presentation.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (in millions)



For the Year Ended December 31, 2014	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	3,768.4		$	847.7		$	(4.3	)	$	4,611.8
Costs of revenue, excluding depreciation and amortization	—			3,226.2			756.1			(4.3		)	3,978.0
Depreciation and amortization	—			119.3			35.2			—			154.5
General and administrative expenses	2.5			208.5			27.3			—			238.3
Interest expense, net	—			47.8			3.0			—			50.8
Other income, net	—			(1.9		)	(6.3		)	—			(8.2		)
(Loss) income from continuing operations before income taxes	$	(2.5	)	$	168.5		$	32.4		$	—		$	198.4
Benefit from (provision for) income taxes	1.0			(70.6		)	(6.8		)	—			(76.4		)
Net (loss) income from continuing operations	$	(1.5	)	$	97.9		$	25.6		$	—		$	122.0
Net loss from discontinued operations	—			—			(6.5		)	—			(6.5		)
Equity in income from subsidiaries, net of tax	117.4			—			—			(117.4		)	—
Net income (loss)	$	115.9		$	97.9		$	19.1		$	(117.4	)	$	115.5
Net loss attributable to non-controlling interests	—			—			(0.4		)	—			(0.4		)
Net income (loss) attributable to MasTec, Inc.	$	115.9		$	97.9		$	19.5		$	(117.4	)	$	115.9
Comprehensive income (loss)	$	95.2		$	97.9		$	(1.6	)	$	(96.7	)	$	94.8

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (in millions)



For the Year Ended December 31, 2013	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	3,903.8		$	425.6		$	(4.6	)	$	4,324.8
Costs of revenue, excluding depreciation and amortization	—			3,321.3			365.7			(4.6		)	3,682.4
Depreciation and amortization	—			120.1			20.8			—			140.9
General and administrative expenses	2.1			184.6			28.7			—			215.4
Interest expense, net	—			45.5			0.9			—			46.4
Loss on extinguishment of debt	—			5.6			—			—			5.6
Other income, net	—			(6.1		)	—			—			(6.1		)
(Loss) income from continuing operations before income taxes	$	(2.1	)	$	232.8		$	9.5		$	—		$	240.2
Benefit from (provision for) income taxes	0.8			(91.9		)	(1.4		)	—			(92.5		)
Net (loss) income from continuing operations	$	(1.3	)	$	140.9		$	8.1		$	—		$	147.7
Net loss from discontinued operations	—			—			(6.5		)	—			(6.5		)
Equity in income from subsidiaries, net of tax	142.2			—			—			(142.2		)	—
Net income (loss)	$	140.9		$	140.9		$	1.6		$	(142.2	)	$	141.2
Net income attributable to non-controlling interests	—			—			0.3			—			0.3
Net income (loss) attributable to MasTec, Inc.	$	140.9		$	140.9		$	1.3		$	(142.2	)	$	140.9
Comprehensive income (loss)	$	133.1		$	140.9		$	(6.2	)	$	(134.4	)	$	133.4



For the Year Ended December 31, 2012	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	3,563.2		$	166.6		$	(3.0	)	$	3,726.8
Costs of revenue, excluding depreciation and amortization	—			3,094.2			148.0			(3.0		)	3,239.2
Depreciation and amortization	—			89.0			3.0			—			92.0
General and administrative expenses	1.7			147.4			8.4			—			157.5
Interest expense, net	—			37.3			0.1			—			37.4
Other expense, net	—			7.8			0.2			—			8.0
(Loss) income from continuing operations before income taxes	$	(1.7	)	$	187.5		$	6.9		$	—		$	192.7
Benefit from (provision for) income taxes	0.7			(75.6		)	(1.2		)	—			(76.1		)
Net (loss) income from continuing operations	$	(1.0	)	$	111.9		$	5.7		$	—		$	116.6
Net loss from discontinued operations	—			—			(9.2		)	—			(9.2		)
Equity in income from subsidiaries, net of tax	108.4			—			—			(108.4		)	—
Net income (loss)	$	107.4		$	111.9		$	(3.5	)	$	(108.4	)	$	107.4
Net income attributable to non-controlling interests	—			—			—			—			—
Net income (loss) attributable to MasTec, Inc.	$	107.4		$	111.9		$	(3.5	)	$	(108.4	)	$	107.4
Comprehensive income (loss)	$	109.9		$	112.5		$	(1.6	)	$	(110.9	)	$	109.9

CONDENSED CONSOLIDATING BALANCE SHEETS (in millions)



As of December 31, 2014	MasTec, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated MasTec, Inc.
Assets
Current assets	$	—	$	1,249.6	$	282.2	$	—		$	1,531.8
Property and equipment, net	—		472.6		150.5		—			623.1
Goodwill and other intangible assets, net	—		1,068.3		264.5		—			1,332.8
Investments in and advances to consolidated affiliates, net	2,108.4		—		1,097.0		(3,205.4		)	—
Other long-term assets	9.3		28.7		38.3		—			76.3
Total assets	$	2,117.7	$	2,819.2	$	1,832.5	$	(3,205.4	)	$	3,564.0
Liabilities and Equity
Total current liabilities	$	—	$	777.4	$	203.4	$	—		$	980.8
Long-term debt	—		1,027.3		33.9		—			1,061.2
Advances from consolidated affiliates, net	—		70.7		—		(70.7		)	—
Other long-term liabilities	—		239.3		134.6		—			373.9
Total liabilities	$	—	$	2,114.7	$	371.9	$	(70.7	)	$	2,415.9
Total equity	$	2,117.7	$	704.5	$	1,460.6	$	(3,134.7	)	$	1,148.1
Total liabilities and equity	$	2,117.7	$	2,819.2	$	1,832.5	$	(3,205.4	)	$	3,564.0



As of December 31, 2013	MasTec, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated MasTec, Inc.
Assets
Current assets	$	—	$	1,156.7	$	150.3	$	—		$	1,307.0
Property and equipment, net	—		420.2		67.9		—			488.1
Goodwill and other intangible assets, net	—		932.8		134.9		—			1,067.7
Investments in and advances to consolidated affiliates, net	1,006.8		170.8		—		(1,177.6		)	—
Other long-term assets	9.3		36.2		14.9		—			60.4
Total assets	$	1,016.1	$	2,716.7	$	368.0	$	(1,177.6	)	$	2,923.2
Liabilities and Equity
Total current liabilities	$	—	$	773.3	$	55.9	$	—		$	829.2
Long-term debt	—		760.9		4.5		—			765.4
Advances from consolidated affiliates, net	—		—		22.5		(22.5		)	—
Other long-term liabilities	—		236.4		71.1		—			307.5
Total liabilities	$	—	$	1,770.6	$	154.0	$	(22.5	)	$	1,902.1
Total equity	$	1,016.1	$	946.1	$	214.0	$	(1,155.1	)	$	1,021.1
Total liabilities and equity	$	1,016.1	$	2,716.7	$	368.0	$	(1,177.6	)	$	2,923.2

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in millions)



For the Year Ended December 31, 2014	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated MasTec, Inc.
Net cash (used in) provided by operating activities	$	(0.5	)	$	253.9		$	69.6		$	—	$	323.0
Cash flows (used in) provided by investing activities:
Cash paid for acquisitions, net of cash acquired	—			(222.7		)	(122.9		)	—		(345.6		)
Capital expenditures	—			(84.8		)	(24.5		)	—		(109.3		)
Proceeds from sale of property and equipment	—			14.3			2.4			—		16.7
Payments for investments, net	(1.0		)	(0.1		)	—			—		(1.1		)
Net cash used in investing activities	$	(1.0	)	$	(293.3	)	$	(145.0	)	$	—	$	(439.3	)
Cash flows provided by (used in) financing activities:
Proceeds from credit facilities	—			1,894.4			491.6			—		2,386.0
Repayments of credit facilities	—			(1,410.0		)	(529.6		)	—		(1,939.6		)
Repayments of senior convertible notes	—			(202.3		)	—			—		(202.3		)
Repayments of other borrowings and capital lease obligations	—			(40.9		)	(26.4		)	—		(67.3		)
Proceeds from stock-based awards, net of tax withholdings	3.8			(2.7		)	—			—		1.1
Excess tax benefit from stock-based compensation	—			3.7			—			—		3.7
Payments of acquisition-related contingent consideration	—			(60.3		)	—			—		(60.3		)
Payments of financing costs	—			(2.6		)	—			—		(2.6		)
Net financing activities and advances (to) from consolidated affiliates	(2.3		)	(126.8		)	129.1			—		—
Net cash provided by financing activities	$	1.5		$	52.5		$	64.7		$	—	$	118.7
Effect of currency translation on cash	—			—			(1.3		)	—		(1.3		)
Net increase (decrease) in cash and cash equivalents	$	—		$	13.1		$	(12.0	)	$	—	$	1.1
Cash and cash equivalents - beginning of period	—			5.4			17.6			—		23.0
Cash and cash equivalents - end of period	$	—		$	18.5		$	5.6		$	—	$	24.1



For the Year Ended December 31, 2013	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated MasTec, Inc.
Net cash (used in) provided by operating activities	$	(1.7	)	$	174.1		$	28.0		$	—	$	200.4
Cash flows (used in) provided by investing activities:
Cash paid for acquisitions, net of cash acquired	—			(45.0		)	(103.6		)	—		(148.6		)
Net cash divested on disposal of business	—			(3.0		)	—			—		(3.0		)
Capital expenditures	—			(114.4		)	(11.9		)	—		(126.3		)
Proceeds from sale of property and equipment	—			14.7			1.2			—		15.9
Payments for investments, net	(1.2		)	—			—			—		(1.2		)
Net cash used in investing activities	$	(1.2	)	$	(147.7	)	$	(114.3	)	$	—	$	(263.2	)
Cash flows provided by (used in) financing activities:
Proceeds from credit facilities	—			961.6			187.4			—		1,149.0
Repayments of credit facilities	—			(1,042.2		)	(207.4		)	—		(1,249.6		)
Proceeds from senior notes, net	—			250.0			—			—		250.0
Repayments of other borrowings and capital lease obligations	—			(69.1		)	(1.6		)	—		(70.7		)
Proceeds from stock-based awards, net of tax withholdings	9.9			(1.5		)	—			—		8.4
Excess tax benefit from stock-based compensation	—			4.3			—			—		4.3
Payments of acquisition-related contingent consideration	—			(16.7		)	(2.0		)	—		(18.7		)
Payments of financing costs, including call premiums on extinguishment of debt	—			(13.7		)	—			—		(13.7		)
Net financing activities and advances (to) from consolidated affiliates	(7.0		)	(106.4		)	113.4			—		—
Net cash provided by (used in) financing activities	$	2.9		$	(33.7	)	$	89.8		$	—	$	59.0
Effect of currency translation on cash	—			—			—			—		—
Net (decrease) increase in cash and cash equivalents	$	—		$	(7.3	)	$	3.5		$	—	$	(3.8	)
Cash and cash equivalents - beginning of period	—			12.7			14.1			—		26.8
Cash and cash equivalents - end of period	$	—		$	5.4		$	17.6		$	—	$	23.0

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in millions)



For the Year Ended December 31, 2012	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated MasTec, Inc.
Net cash (used in) provided by operating activities	$	(1.3	)	$	159.2		$	14.6		$	—	$	172.5
Cash flows (used in) provided by investing activities:
Cash paid for acquisitions, net of cash acquired	—			(54.0		)	(65.5		)	—		(119.5		)
Proceeds from disposal of business, net of cash divested	—			—			97.7			—		97.7
Capital expenditures	—			(78.1		)	(1.6		)	—		(79.7		)
Proceeds from sale of property and equipment	—			7.3			0.1			—		7.4
Payments for investments, net	(0.2		)	—			—			—		(0.2		)
Net cash (used in) provided by investing activities	$	(0.2	)	$	(124.8	)	$	30.7		$	—	$	(94.3	)
Cash flows (used in) provided by financing activities:
Proceeds from credit facilities	—			959.2			—			—		959.2
Repayments of credit facilities	—			(885.2		)	—			—		(885.2		)
Repayments of other borrowings and capital lease obligations	—			(42.5		)	—			—		(42.5		)
Repurchase of common stock	(75.0		)	—			—			—		(75.0		)
Proceeds from stock-based awards, net of tax withholdings	5.0			—			—			—		5.0
Excess tax benefit from stock-based compensation	—			0.8			—			—		0.8
Payments of acquisition-related contingent consideration	—			(27.8		)	(6.2		)	—		(34.0		)
Payments of financing costs	—			(0.1		)	—			—		(0.1		)
Net financing activities and advances from (to) consolidated affiliates	71.5			(31.7		)	(39.8		)	—		—
Net cash provided by (used in) financing activities	$	1.5		$	(27.3	)	$	(46.0	)	$	—	$	(71.8	)
Effect of currency translation on cash	—			—			0.1			—		0.1
Net increase (decrease) in cash and cash equivalents	$	—		$	7.1		$	(0.6	)	$	—	$	6.5
Cash and cash equivalents - beginning of period	—			5.6			14.7			—		20.3
Cash and cash equivalents - end of period	$	—		$	12.7		$	14.1		$	—	$	26.8