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Related Party Transactions
3 Months Ended
Mar. 31, 2016
Related Party Transactions [Abstract]  
Related Party Transactions
Note 15 - Related Party Transactions
The Company’s 2014 acquisition of Pacer included a 35% undivided interest in a proportionately consolidated non-controlled Canadian contractual joint venture. Pacer’s undivided interest in this contractual joint venture automatically terminates upon completion of the project. Pacer has minimal direct involvement in the remaining work on this project. For the three month periods ended March 31, 2016 and 2015, revenue recognized by Pacer in connection with work performed for this contractual joint venture totaled $0.3 million and $0.6 million, respectively. As of March 31, 2016 and December 31, 2015, receivables from this contractual joint venture totaled $0.8 million and $1.2 million, respectively. Performance guarantees associated with this contractual joint venture as of both March 31, 2016 and December 31, 2015 totaled Canadian $132.1 million (or approximately $101.6 million and $95.4 million, respectively), based on the full contract value of the project, for which Pacer is obligated on a joint and several basis with its other joint venture partner. In addition, from time to time, the Company may provide financing to this contractual joint venture. There were $3.5 million of such payments made during the three month period ended March 31, 2016. As of March 31, 2016, there were no additional amounts committed by Pacer to this contractual joint venture. Subsequent to March 31, 2016, Pacer made a payment of $1.4 million.
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. 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 March 31, 2016 and 2015, MasTec paid CCP approximately $0.8 million, net of rebates of approximately $0.4 million, and $1.7 million, respectively, for equipment supplies, rentals, leases and servicing, and as of March 31, 2016 and December 31, 2015, related payables totaled approximately $0.7 million and $0.6 million, respectively.
MasTec entered into a subcontracting arrangement in the first quarter of 2016 for the performance of ancillary services with an entity, the minority owners of which include an entity controlled by Jorge Mas and José R. Mas, along with two members of the management of a subsidiary of the Company. MasTec incurred $1.5 million of expenses under this subcontracting arrangement for the three months ended March 31, 2016 and as of March 31, 2016, related amounts payable totaled $1.2 million.
MasTec leases employees to a customer in which Jorge Mas and José R. Mas own a majority interest. For both the three month periods ended March 31, 2016 and 2015, MasTec charged approximately $0.2 million to this customer. As of both March 31, 2016 and December 31, 2015, 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 March 31, 2016 and 2015, revenue from satellite communication services provided to this customer totaled approximately $0.2 million, and as of March 31, 2016 and December 31, 2015, receivables totaled approximately $0.4 million and $0.3 million, respectively.
The Company entered into a leasing arrangement in 2015 with a third party that leases an aircraft from a Company owned by Jorge Mas. The Company paid $0.7 million under this leasing arrangement for the three month period ended March 31, 2016. There were no payments under this leasing arrangement for the three month period ended March 31, 2015.
Certain of the Company’s subsidiaries have entered into related party lease arrangements for operational facilities and equipment, typically with the former owners of acquired businesses. Related party lease payments for the three month periods ended March 31, 2016 and 2015 totaled approximately $9.1 million and $5.3 million, respectively, and as of March 31, 2016 and December 31, 2015, payables totaled approximately $0.8 million and $0.1 million, respectively. In addition, certain subsidiaries have entered into related party arrangements for various types of supplies and services, including project-related site restoration and marketing and business development activities, for which the Company paid approximately $3.1 million and $0.9 million for the three month periods ended March 31, 2016 and 2015, respectively, and as of March 31, 2016 and December 31, 2015, payables totaled approximately $1.0 million and $2.1 million, respectively.
Split Dollar Agreements
MasTec has split dollar agreements with each of José R. Mas and Jorge Mas. No payments were made in connection with these agreements in either of the three month periods ended March 31, 2016 or 2015. As of both March 31, 2016 and December 31, 2015, life insurance assets associated with these agreements totaled $13.0 million, and were included within other long-term assets in the consolidated balance sheets.