Stock-Based Compensation and Other Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation and Other Employee Benefit Plans

Note 9 – Stock-Based Compensation and Other Employee Benefit Plans

The Company’s stock-based compensation plans, under which shares of the Company’s common stock are reserved for issuance, include: the MasTec, Inc. 2013 Incentive Compensation Plan (as amended from time to time, the “2013 Incentive Plan”), the MasTec, Inc. Bargaining Units Employee Stock Purchase Plan (the “2013 Bargaining Units ESPP”) and the MasTec, Inc. 2011 Amended and Restated Employee Stock Purchase Plan (the “2011 ESPP,” and, together with the 2013 Bargaining Units ESPP, the “ESPPs”). The 2013 Incentive Plan permits a total of approximately 7,391,000 shares of the Company’s common stock to be issued. Under the Company’s ESPPs, shares of the Company’s common stock are available for purchase by eligible participants, which collectively permit the issuance of up to 3,000,000 new shares of MasTec, Inc. common stock. Under all stock-based compensation plans in effect as of December 31, 2019, there were approximately 3,865,000 shares available for future grant.

Non-cash stock-based compensation expense under all plans totaled $16.4 million, $13.5 million and $15.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. Income tax benefits associated with stock-based compensation arrangements totaled $7.9 million, $4.9 million and $11.2 million for the years ended December 31, 2019, 2018 and 2017, respectively, including net tax benefits related to the vesting of share-based payment awards totaling $3.9 million, $1.6 million and $5.4 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Restricted Shares

MasTec grants restricted stock awards and restricted stock units (together, “restricted shares”) to eligible participants, which are valued based on the closing market share price of MasTec common stock (the “market price”) on the date of grant. During the restriction period, holders of restricted stock awards are entitled to vote the shares. As of December 31, 2019, total unearned compensation related to restricted shares was approximately $33.5 million, which is expected to be recognized over a weighted average period of approximately 2.3 years. The total fair value of restricted shares that vested, which is based on the market price on the date of vesting, totaled $25.0 million, $16.6 million and $39.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Activity, restricted shares: (a)	Restricted Shares		Per Share Weighted Average   Grant Date Fair Value
Non-vested restricted shares, as of December 31, 2017	1,448,591		$	23.29
Granted	423,596		41.41
Vested	(554,900	)	17.73
Canceled/forfeited	(47,054	)	22.26
Non-vested restricted shares, as of December 31, 2018	1,270,233		$	31.80
Granted	458,670		53.67
Vested	(494,910	)	18.54
Canceled/forfeited	(12,400	)	33.87
Non-vested restricted shares, as of December 31, 2019	1,221,593		$	45.36

(a) Includes 18,700 and 27,550 restricted stock units as of December 31, 2018 and 2017, respectively.

Employee Stock Purchase Plans

The following table provides details pertaining to the Company’s ESPPs for the periods indicated:

	For the Years Ended December 31,
	2019		2018		2017
Cash proceeds (in millions)	$	4.7	$	4.2	$	3.3
Common shares issued	111,136		110,506		92,145
Weighted average price per share	$	42.46	$	37.98	$	35.92
Weighted average per share grant date fair value	$	10.71	$	9.36	$	9.24

401(k) Plan. MasTec has a 401(k) plan covering all eligible employees, which allows participants to contribute up to 75% of their pre-tax annual compensation to the plan, subject to certain limitations. Company contributions under the plan are based upon a percentage of the employee’s salary, subject to certain limitations as defined by the plan. During the years ended December 31, 2019, 2018 and 2017, matching contributions totaled approximately $16.5 million, $13.4 million and $11.9 million, respectively.

Deferred Compensation Plans. MasTec offers a deferred compensation plan to its highly compensated employees. These employees are allowed to contribute a percentage of their pre-tax annual compensation to the deferred compensation plan. The Company also offers a deferred compensation plan to its Board of Directors, under which directors may elect to defer the receipt of compensation for their services. Total deferred compensation plan assets, which are included within other long-term assets in the consolidated balance sheets, totaled $11.9 million and $10.0 million as of December 31, 2019 and 2018, respectively. Total deferred compensation plan liabilities, which are included within other long-term liabilities in the consolidated balance sheets, totaled $12.3 million and $10.2 million as of December 31, 2019 and 2018, respectively.