Related Party Transactions

6 Months Ended

Jun. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Note 16 - Related Party Transactions

MasTec purchases, rents and leases equipment used in its business from a number of different vendors on a non-exclusive basis, including Cross Country Pipeline Supply, Inc. (“CCP”), in which the Company has a cost method investment of $15 million, resulting from its investment in CCP in 2013. Juan Carlos Mas, who is the brother of Jorge Mas, Chairman of MasTec’s Board of Directors, and José R. Mas, MasTec’s Chief Executive Officer, serves as the chairman of CCP. Additionally, an entity owned by Jorge, José and Juan Carlos Mas is a minority shareholder of CCP. For the three month periods ended June 30, 2015 and 2014, MasTec paid CCP approximately $1.0 million and $1.8 million, respectively, for equipment rentals, leases and servicing. For both the six month periods ended June 30, 2015 and 2014, MasTec paid CCP approximately $2.7 million, for equipment rentals, leases and servicing.

MasTec leases employees to a customer in which Jorge Mas and José R. Mas own a minority interest. For both the three month periods ended June 30, 2015 and 2014, MasTec charged approximately $0.2 million to this customer. For the six month periods ended June 30, 2015 and 2014, MasTec charged approximately $0.4 million and $0.3 million to this customer. As of both June 30, 2015 and December 31, 2014, outstanding receivables from employee leasing arrangements with this customer totaled $0.1 million. The Company also provides satellite communication services to this customer. For both the three month periods ended June 30, 2015 and 2014, satellite communication revenue relating to this customer totaled approximately $0.2 million. For the six month periods ended June 30, 2015 and 2014, satellite communication revenues relating to this customer were approximately $0.4 million and $0.5 million, respectively. As of June 30, 2015 and December 31, 2014, outstanding receivables from this customer for satellite communication services totaled approximately $0.3 million and $0.5 million, respectively.

Split Dollar Agreements

MasTec has a split dollar agreement with José R. Mas. For both the three and six month periods ended June 30, 2015, the Company paid $0.7 million in connection with the agreement for José R. Mas. As of June 30, 2014, the Company had a split dollar agreement and a deferred bonus agreement with José R. Mas. For both the three and six month periods ended June 30, 2014, the Company received approximately $0.8 million in proceeds from policies surrendered, net of premiums paid, in connection with the agreements for José R. Mas. MasTec also has a split dollar agreement with Jorge Mas. The Company paid approximately $0.5 million in connection with this agreement for both the three and six month periods ended June 30, 2015 and 2014. As of June 30, 2015 and December 31, 2014, life insurance assets associated with these agreements totaled $12.3 million and $11.1 million respectively, and were included within other long-term assets in the consolidated balance sheets. For additional information regarding the split dollar agreements with José and Jorge Mas, see Note 18 - Related Party Transactions in the notes to the 2014 Form 10-K.