XML 40 R21.htm IDEA: XBRL DOCUMENT v3.7.0.1
Related Party Transactions
3 Months Ended
Mar. 31, 2017
Related Party Transactions [Abstract]  
Related Party Transactions
Note 15 - Related Party Transactions
For the three month periods ended March 31, 2017 and 2016, 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 $0.1 million and $0.3 million, respectively. As of March 31, 2017 and December 31, 2016, receivables from this contractual joint venture totaled $0.6 million and $0.7 million, respectively. Related performance guarantees as of both March 31, 2017 and December 31, 2016 totaled Canadian $132.1 million (or approximately $99.2 million and $98.3 million, respectively), based on the full contract value of the project. In addition, for the three month period ended March 31, 2017, the Company provided $0.8 million of project-related financing in connection with this contractual joint venture. As of March 31, 2017, there were no additional amounts committed to this entity. The Company also has undivided interests of 85%, 85% and 90%, respectively, in three proportionately consolidated contractual joint ventures that provide electrical transmission infrastructure services.

MasTec purchases, rents and leases equipment used in its business from a number of different vendors on a non-exclusive basis, including CCP, in which the Company has a cost method investment. 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. For the three month periods ended March 31, 2017 and 2016, MasTec paid CCP approximately $1.0 million and $0.8 million, respectively, which amounts were net of rebates of approximately $1.6 million and $0.4 million, respectively, for equipment supplies, rentals, leases and servicing. As of March 31, 2017 and December 31, 2016, related payables totaled approximately $1.3 million and $1.5 million, respectively.
MasTec has a subcontracting arrangement with an entity for the performance of construction services, the minority owners of which include an entity controlled by Jorge Mas, MasTec’s Chairman of the Board of Directors, and José R. Mas, MasTec’s Chief Executive Officer, along with two members of the management of a subsidiary of the Company. For the three month periods ended March 31, 2017 and 2016, MasTec incurred $0.6 million and $1.5 million, respectively, of expenses under this subcontracting arrangement. As of both March 31, 2017 and December 31, 2016, related amounts payable totaled $0.1 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 March 31, 2017 and 2016, MasTec charged approximately $0.2 million to this customer. As of both March 31, 2017 and December 31, 2016, outstanding receivables from employee leasing arrangements with this customer totaled $0.2 million. The Company also provides satellite communication services to this customer. For both three month periods ended March 31, 2017 and 2016, revenue from satellite communication services provided to this customer totaled approximately $0.2 million. As of March 31, 2017 and December 31, 2016, amounts receivable from this arrangement totaled approximately $0.3 million and $0.4 million, respectively.
MasTec has a leasing arrangement with a third party that leases an aircraft from a Company owned by Jorge Mas. For the three month periods ended March 31, 2017 and 2016, MasTec paid $0.5 million and $0.7 million, respectively, under this leasing arrangement. As of March 31, 2017, there were no related amounts payable, and, as of December 31, 2016, related amounts payable were de minimis.
For the three month periods ended March 31, 2017 and 2016, related party lease payments for operational facilities and equipment, which are primarily associated with members of subsidiary management, totaled approximately $12.7 million and $9.1 million, respectively, and related amounts payable totaled approximately $0.1 million and $0.3 million as of March 31, 2017 and December 31, 2016, respectively. Additionally, payments for various types of supplies and services, including ancillary construction services, project-related site restoration and marketing and business development activities associated with members of subsidiary management, totaled approximately $6.6 million and $3.1 million for the three month periods ended March 31, 2017 and 2016, respectively. As of March 31, 2017 and December 31, 2016, related amounts payable totaled approximately $0.5 million and $3.7 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. For the three month period ended March 31, 2017, the Company made distributions of earnings of $1.3 million to holders of its non-controlling interests.
Split Dollar Agreements
MasTec has split dollar insurance 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, 2017 or 2016. As of both March 31, 2017 and December 31, 2016, life insurance assets associated with these agreements totaled $14.8 million, which amount is included within other long-term assets.