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Related Party Transactions
9 Months Ended
Sep. 30, 2016
Related Party Transactions [Abstract]  
Related Party Transactions
Note 15 - Related Party Transactions
For the three month periods ended September 30, 2016 and 2015, revenue recognized by the Company’s Pacer subsidiary for work performed for a contractual joint venture in which it holds a 35% undivided interest totaled $0.2 million and $0.3 million, respectively, and for the nine month periods ended September 30, 2016 and 2015, totaled $0.8 million and $1.8 million, respectively. As of September 30, 2016 and December 31, 2015, receivables from this contractual joint venture totaled $0.6 million and $1.2 million, respectively. Related performance guarantees as of both September 30, 2016 and December 31, 2015 totaled Canadian $132.1 million (or approximately $100.6 million and $95.4 million, respectively), based on the full contract value of the project. In addition, for the three and nine month periods ended September 30, 2016, the Company provided $0.8 million and $5.6 million, respectively, of project-related financing in connection with this contractual joint venture. As of September 30, 2016, there were no additional amounts committed.
The Company has 90% and 85% undivided interests, respectively, in two proportionately consolidated non-controlled contractual joint ventures that provide electrical transmission infrastructure services, for which the Company and its joint venture partner equally share voting and decision-making control. As of September 30, 2016, current assets and current liabilities relating to these contractual joint ventures, which totaled $9.2 million and $7.1 million, respectively, were included in the Company’s consolidated balance sheet.
For the three month period ended September 30, 2016, MasTec paid CCP, an entity in which the Company has a cost method investment, approximately $10.0 million for equipment supplies, rentals, leases and servicing, and for the nine month period ended September 30, 2016, MasTec paid CCP $13.7 million, net of rebates of approximately $0.4 million. For the three and nine month periods ended September 30, 2015, MasTec paid CCP approximately $4.8 million and $7.5 million, respectively. As of September 30, 2016 and December 31, 2015, related payables totaled approximately $5.4 million and $0.6 million, respectively.
MasTec entered into a subcontracting arrangement in the first quarter of 2016 for the performance of construction 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 $5.6 million and $8.8 million of expenses under this subcontracting arrangement for the three and nine month periods ended September 30, 2016, respectively, and, during the third quarter of 2016, sold equipment totaling $0.3 million to this entity. As of September 30, 2016, related amounts payable totaled $3.2 million.
MasTec leases employees to a customer in which Jorge Mas and José R. Mas own a majority interest. For both three month periods ended September 30, 2016 and 2015, MasTec charged approximately $0.2 million to this customer, and for both the nine month periods ended September 30, 2016 and 2015 charged approximately $0.6 million. As of September 30, 2016 and December 31, 2015, outstanding receivables from employee leasing arrangements with this customer totaled $0.2 million and $0.1 million, respectively. The Company also provides satellite communication services to this customer. For both three month periods ended September 30, 2016 and 2015, revenue from satellite communication services provided to this customer totaled approximately $0.2 million, and for both the nine month periods ended September 30, 2016 and 2015, totaled $0.7 million. As of both September 30, 2016 and December 31, 2015, receivables totaled approximately $0.3 million.
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 and $2.0 million, respectively, under this leasing arrangement for the three and nine month periods ended September 30, 2016, respectively. The Company has no related payables as of September 30, 2016.
For the three month periods ended September 30, 2016 and 2015, related party lease payments for operational facilities and equipment, typically associated with members of subsidiary management, totaled approximately $12.5 million and $5.1 million, respectively, and for the nine month periods ended September 30, 2016 and 2015, related party lease payments totaled approximately $31.6 million and $14.5 million, respectively. Payables associated with related party leases totaled approximately $0.1 million as of both September 30, 2016 and December 31, 2015. Prepaid amounts associated with related party leases totaled $0.4 million as of September 30, 2016. In addition, related party payments for various types of supplies and services, including ancillary construction services, project-related site restoration and marketing and business development activities involving members of subsidiary management, totaled approximately $7.4 million and $14.2 million for the three and nine month periods ended September 30, 2016, respectively, and $3.1 million and $4.5 million for the three and nine month periods ended September 30, 2015, respectively. As of September 30, 2016 and December 31, 2015, related payables totaled approximately $6.0 million and $2.1 million, respectively.
Non-controlling interests in entities consolidated by the Company represent ownership interests held by certain members of management of several of the Company’s subsidiaries, primarily in our Oil and Gas segment, and the Company has a subcontracting arrangement with one of these entities for the performance of ancillary oil and gas construction services. Expense related to this subcontracting arrangement is eliminated in consolidation.
Split Dollar Agreements
MasTec has split dollar insurance agreements with each of José R. Mas and Jorge Mas. In connection with the split dollar agreement for Jorge Mas, the Company paid $0.6 million for both the three month periods ended September 30, 2016 and 2015, and paid $1.1 million for both the nine month periods ended September 30, 2016 and 2015. In connection with the split dollar agreement for José R. Mas, the Company made no payments in either of the three month periods ended September 30, 2016 or 2015, and paid $0.7 million for both the nine month periods ended September 30, 2016 and 2015. As of September 30, 2016 and December 31, 2015, life insurance assets associated with these agreements totaled $14.8 million and $13.0 million, respectively, which were included within other long-term assets.