Note 17 – Supplemental Guarantor Condensed Consolidating Financial Information

The 4.875% Senior Notes are 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, as of December 31, 2017, each guarantors of the Credit Facility or other outstanding indebtedness (the “Guarantor Subsidiaries”). The Company’s subsidiaries organized outside of the United States and certain domestic subsidiaries (collectively, the “Non-Guarantor Subsidiaries”) do not guarantee 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 (loss) and cash flows for 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 (LOSS) (in millions)



For the Year Ended December 31, 2017	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	6,222.3		$	457.0		$	(72.3	)	$	6,607.0
Costs of revenue, excluding depreciation and amortization	—			5,378.6			439.0			(72.3		)	5,745.3
Depreciation and amortization	—			159.1			28.9			—			188.0
General and administrative expenses	2.3			256.3			16.5			—			275.1
Interest expense (income), net	—			123.6			(62.6		)	—			61.0
Equity in earnings of unconsolidated affiliates	—			—			(21.3		)	—			(21.3		)
Other income, net	—			(13.0		)	—			—			(13.0		)
(Loss) income before income taxes	$	(2.3	)	$	317.7		$	56.5		$	—		$	371.8
Benefit from (provision for) income taxes	0.2			(18.1		)	(5.0		)	—			(22.9		)
Net (loss) income before equity in income from subsidiaries	$	(2.1	)	$	299.6		$	51.5		$	—		$	348.9
Equity in income from subsidiaries, net of tax	349.3			—			—			(349.3		)	—
Net income (loss)	$	347.2		$	299.6		$	51.5		$	(349.3	)	$	348.9
Net income (loss) attributable to non-controlling interests	—			2.4			(0.7		)	—			1.7
Net income (loss) attributable to MasTec, Inc.	$	347.2		$	297.2		$	52.2		$	(349.3	)	$	347.2
Comprehensive income (loss)	$	349.3		$	299.6		$	53.6		$	(351.4	)	$	351.0

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



For the Year Ended December 31, 2016	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	4,790.9		$	353.8		$	(10.0	)	$	5,134.7
Costs of revenue, excluding depreciation and amortization	—			4,101.2			350.9			(10.0		)	4,442.1
Depreciation and amortization	—			134.2			30.7			—			164.9
General and administrative expenses	2.4			234.4			24.6			—			261.4
Interest expense (income), net	—			112.0			(61.3		)	—			50.7
Equity in earnings of unconsolidated affiliates	—			—			(3.5		)	—			(3.5		)
Other income, net	—			—			(6.8		)	—			(6.8		)
(Loss) income before income taxes	$	(2.4	)	$	209.1		$	19.2		$	—		$	225.8
Benefit from (provision for) income taxes	0.9			(72.6		)	(20.1		)	—			(91.8		)
Net (loss) income before equity in income from subsidiaries	$	(1.5	)	$	136.5		$	(0.9	)	$	—		$	134.0
Equity in income from subsidiaries, net of tax	132.8			—			—			(132.8		)	—
Net income (loss)	$	131.3		$	136.5		$	(0.9	)	$	(132.8	)	$	134.0
Net income (loss) attributable to non-controlling interests	—			3.3			(0.5		)	—			2.8
Net income (loss) attributable to MasTec, Inc.	$	131.3		$	133.2		$	(0.4	)	$	(132.8	)	$	131.3
Comprehensive income (loss)	$	137.8		$	136.5		$	5.6		$	(139.3	)	$	140.6



For the Year Ended December 31, 2015	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	3,527.0		$	689.7		$	(8.4	)	$	4,208.3
Costs of revenue, excluding depreciation and amortization	—			3,073.6			656.1			(8.4		)	3,721.3
Depreciation and amortization	—			130.6			39.1			—			169.7
Goodwill and intangible asset impairment	—			—			78.6			—			78.6
General and administrative expenses	2.1			235.4			28.4			—			265.9
Interest expense (income), net	—			111.0			(62.9		)	—			48.1
Equity in losses of unconsolidated affiliates	—			—			8.0			—			8.0
Other income, net	—			(6.2		)	(9.3		)	—			(15.5		)
Loss before income taxes	$	(2.1	)	$	(17.4	)	$	(48.3	)	$	—		$	(67.7	)
Benefit from (provision for) income taxes	1.1			9.3			(22.3		)	—			(12.0		)
Net loss before equity in losses from subsidiaries	$	(1.0	)	$	(8.1	)	$	(70.6	)	$	—		$	(79.7	)
Equity in losses from subsidiaries, net of tax	(78.1		)	—			—			78.1			—
Net (loss) income	$	(79.1	)	$	(8.1	)	$	(70.6	)	$	78.1		$	(79.7	)
Net loss attributable to non-controlling interests	—			—			(0.6		)	—			(0.6		)
Net (loss) income attributable to MasTec, Inc.	$	(79.1	)	$	(8.1	)	$	(70.0	)	$	78.1		$	(79.1	)
Comprehensive (loss) income	$	(117.5	)	$	(8.1	)	$	(109.0	)	$	116.5		$	(118.1	)

CONDENSED CONSOLIDATING BALANCE SHEETS (in millions)



As of December 31, 2017	MasTec, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated MasTec, Inc.
Assets
Total current assets	$	—	$	1,536.6	$	332.9	$	(17.1	)	$	1,852.4
Property and equipment, net	—		638.7		67.8		—			706.5
Goodwill and other intangible assets, net	—		1,187.9		141.0		—			1,328.9
Investments in and advances to consolidated affiliates, net	1,415.0		847.7		746.6		(3,009.3		)	—
Other long-term assets	15.8		23.4		139.6		—			178.8
Total assets	$	1,430.8	$	4,234.3	$	1,427.9	$	(3,026.4	)	$	4,066.6
Liabilities and equity
Total current liabilities	$	—	$	778.6	$	202.3	$	(17.1	)	$	963.8
Long-term debt	—		1,269.4		11.3		—			1,280.7
Other long-term liabilities	—		379.9		8.8		—			388.7
Total liabilities	$	—	$	2,427.9	$	222.4	$	(17.1	)	$	2,633.2
Total equity	$	1,430.8	$	1,806.4	$	1,205.5	$	(3,009.3	)	$	1,433.4
Total liabilities and equity	$	1,430.8	$	4,234.3	$	1,427.9	$	(3,026.4	)	$	4,066.6



As of December 31, 2016	MasTec, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated MasTec, Inc.
Assets
Total current assets	$	—	$	1,257.2	$	155.5	$	(10.2	)	$	1,402.5
Property and equipment, net	—		463.7		85.4		—			549.1
Goodwill and other intangible assets, net	—		1,037.4		138.2		—			1,175.6
Investments in and advances to consolidated affiliates, net	1,083.9		617.4		867.7		(2,569.0		)	—
Other long-term assets	12.6		25.2		18.1		—			55.9
Total assets	$	1,096.5	$	3,400.9	$	1,264.9	$	(2,579.2	)	$	3,183.1
Liabilities and equity
Total current liabilities	$	—	$	742.8	$	107.4	$	(10.2	)	$	840.0
Long-term debt	—		941.7		19.7		—			961.4
Other long-term liabilities	—		258.1		20.0		—			278.1
Total liabilities	$	—	$	1,942.6	$	147.1	$	(10.2	)	$	2,079.5
Total equity	$	1,096.5	$	1,458.3	$	1,117.8	$	(2,569.0	)	$	1,103.6
Total liabilities and equity	$	1,096.5	$	3,400.9	$	1,264.9	$	(2,579.2	)	$	3,183.1

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in millions)



For the Year Ended December 31, 2017	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated MasTec, Inc.
Net cash provided by operating activities	$	—		$	155.1		$	1.2		$	—	$	156.3
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired	—			(116.0		)	—			—		(116.0		)
Capital expenditures	—			(120.1		)	(3.3		)	—		(123.4		)
Proceeds from sale of property and equipment	—			18.2			1.8			—		20.0
Payments for other investments	—			(3.8		)	(73.3		)	—		(77.1		)
Proceeds from other investments	—			1.2			22.6			—		23.8
Net cash used in investing activities	$	—		$	(220.5	)	$	(52.2	)	$	—	$	(272.7	)
Cash flows from financing activities:
Proceeds from credit facilities	—			2,674.4			24.6			—		2,699.0
Repayments of credit facilities	—			(2,428.9		)	(28.4		)	—		(2,457.3		)
Repayments of other borrowings and capital lease obligations, net	—			(61.5		)	(9.6		)	—		(71.1		)
Payments of acquisition-related contingent consideration	—			(18.8		)	—			—		(18.8		)
Payments to non-controlling interests, including acquisition of interests and distributions	—			(22.7		)	—			—		(22.7		)
Payments for stock-based awards, net	(3.1		)	—			—			—		(3.1		)
Repurchase of common stock	(1.6		)	—			—			—		(1.6		)
Other financing activities, net	—			(6.3		)	—			—		(6.3		)
Net financing activities and advances from (to) consolidated affiliates	4.7			(89.6		)	84.9			—		—
Net cash provided by financing activities	$	—		$	46.6		$	71.5		$	—	$	118.2
Effect of currency translation on cash	—			—			(0.1		)	—		(0.1		)
Net (decrease) increase in cash and cash equivalents	$	—		$	(18.8	)	$	20.4		$	—	$	1.6
Cash and cash equivalents - beginning of period	—			28.9			9.9			—		38.8
Cash and cash equivalents - end of period	$	—		$	10.1		$	30.3		$	—	$	40.3



For the Year Ended December 31, 2016	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated MasTec, Inc.
Net cash provided by operating activities	$	—		$	130.5		$	75.1		$	—	$	205.6
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired	—			(4.1		)	—			—		(4.1		)
Capital expenditures	—			(112.6		)	(4.5		)	—		(117.1		)
Proceeds from sale of property and equipment	—			7.6			3.6			—		11.2
Payments for other investments	—			(3.9		)	(28.2		)	—		(32.2		)
Proceeds from other investments	—			—			1.1			—		1.1
Net cash used in investing activities	$	—		$	(113.0	)	$	(28.0	)	$	—	$	(141.0	)
Cash flows from financing activities:
Proceeds from credit facilities	—			1,553.4			128.0			—		1,681.4
Repayments of credit facilities	—			(1,496.6		)	(130.5		)	—		(1,627.1		)
Repayments of other borrowings and capital lease obligations, net	—			(50.4		)	(18.3		)	—		(68.7		)
Payments of acquisition-related contingent consideration	—			(16.6		)	(3.2		)	—		(19.8		)
Proceeds from stock-based awards, net	4.2			—			—			—		4.2
Other financing activities, net	0.1			0.4			—			—		0.5
Net financing activities and advances (to) from consolidated affiliates	(4.3		)	16.4			(12.1		)	—		—
Net cash provided by (used in) financing activities	$	—		$	6.6		$	(36.1	)	$	—	$	(29.5	)
Effect of currency translation on cash	—			—			(1.3		)	—		(1.3		)
Net increase in cash and cash equivalents	$	—		$	24.1		$	9.7		$	—	$	33.8
Cash and cash equivalents - beginning of period	—			4.8			0.2			—		5.0
Cash and cash equivalents - end of period	$	—		$	28.9		$	9.9		$	—	$	38.8

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in millions)



For the Year Ended December 31, 2015	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated MasTec, Inc.
Net cash provided by operating activities	$	0.9		$	358.5		$	8.0		$	—	$	367.4
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired	—			(0.1		)	—			—		(0.1		)
Capital expenditures	—			(71.9		)	(12.5		)	—		(84.4		)
Proceeds from sale of property and equipment	—			10.5			3.4			—		13.9
Payments for other investments	(1.9		)	—			(125.6		)	—		(127.5		)
Proceeds from other investments	—			—			69.4			—		69.4
Net cash used in investing activities	$	(1.9	)	$	(61.5	)	$	(65.3	)	$	—	$	(128.7	)
Cash flows from financing activities:
Proceeds from credit facilities	—			1,097.3			605.1			—		1,702.4
Repayments of credit facilities	—			(1,154.3		)	(587.8		)	—		(1,742.1		)
Repayments of other borrowings and capital lease obligations, net	—			(54.3		)	(16.6		)	—		(70.9		)
Repurchase of common stock	(100.0		)	—			—			—		(100.0		)
Payments of acquisition-related contingent consideration	—			(37.3		)	(10.2		)	—		(47.5		)
Proceeds from (payments for) stock-based awards, net	2.7			(1.1		)	—			—		1.6
Other financing activities, net	—			(2.4		)	—			—		(2.4		)
Net financing activities and advances from (to) consolidated affiliates	98.3			(158.6		)	60.3			—		—
Net cash provided by (used in) financing activities	$	1.0		$	(310.7	)	$	50.8		$	—	$	(258.9	)
Effect of currency translation on cash	—			—			1.1			—		1.1
Net decrease in cash and cash equivalents	$	—		$	(13.7	)	$	(5.4	)	$	—	$	(19.1	)
Cash and cash equivalents - beginning of period	—			18.5			5.6			—		24.1
Cash and cash equivalents - end of period	$	—		$	4.8		$	0.2		$	—	$	5.0