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Goodwill and Other Intangible Assets
 3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Note 3 – Goodwill and Other Intangible Assets
The following table provides balances for goodwill by reportable segment as of March 31, 2020 (in millions):
 
Communications
 
Oil and Gas
 
Electrical
Transmission
 
Power Generation and Industrial
 
Total Goodwill
Goodwill, gross
$
541.8

 
$
489.3

 
$
149.9

 
$
152.8

 
$
1,333.8

Accumulated impairment loss
—

 
(112.7
)
 
—

 
—

 
(112.7
)
Goodwill, net
$
541.8

 
$
376.6

 
$
149.9

 
$
152.8

 
$
1,221.1


For the three month period ended March 31, 2020, goodwill included a net increase of $0.8 million from measurement period adjustments. Currency translation effects related to goodwill and accumulated impairment losses for the three month period ended March 31, 2020 totaled approximately $9.9 million of losses and $8.8 million of gains, respectively.
The following table provides a reconciliation of changes in other intangible assets, net, for the period indicated (in millions):
 
Other Intangible Assets
 
Non-Amortizing
 
Amortizing
 
 
 
Trade Names
 
Pre-Qualifications
 
Customer Relationships and Backlog
 
Pre-Qualifications
 
Other (a)
 
Total
Other intangible assets, gross, as of December 31, 2019
$
34.5

 
$
72.9

 
$
286.5

 
$
—

 
$
26.3

 
$
420.2

Accumulated amortization
 
 
 
 
(191.2
)
 
—

 
(17.5
)
 
(208.7
)
Other intangible assets, net, as of December 31, 2019
$
34.5

 
$
72.9

 
$
95.3

 
$
—

 
$
8.8

 
$
211.5

Classification changes (b)
—

 
(69.8
)
 
—

 
69.8

 
—

 
—

Measurement period adjustments (c)
—

 
—

 
(0.2
)
 
—

 
—

 
(0.2
)
Currency translation adjustments
—

 
(3.1
)
 
—

 
—

 
—

 
(3.1
)
Amortization expense
 
 
 
 
(5.9
)
 
(1.0
)
 
(0.5
)
 
(7.4
)
Other intangible assets, net, as of March 31, 2020
$
34.5

 
$
—

 
$
89.2

 
$
68.8

 
$
8.3

 
$
200.8

(a)
Consists principally of trade names and non-compete agreements.
(b)
In connection with its first quarter assessment of goodwill and indefinite-lived intangible assets, management reassessed the indefinite life classification of its two pre-qualification intangible assets. Management determined that, based on changes in the assets’ characteristics, including current and expected changes in the customer mix of the associated reporting units, a finite life classification for these assets was more appropriate. As a result, in the first quarter of 2020, the Company changed the classification of these pre-qualification intangible assets from indefinite-lived to finite-lived and began amortizing them on an accelerated basis. As of March 31, 2020, the estimated remaining weighted average useful life of these assets was approximately 12 years.
(c)
Represents adjustments to preliminary estimates of fair value within the measurement period of up to one year from the date of acquisition.
Amortization of intangible assets for the three month periods ended March 31, 2020 and 2019 totaled $7.4 million and $4.8 million, respectively.
2019 Acquisitions. During 2019, MasTec completed six acquisitions, one of which specializes in water infrastructure for pipeline companies and is included within the Company’s Oil and Gas segment, four of which are included within the Company’s Communications segment, including a wireline/fiber deployment construction contractor and a telecommunications company specializing in a broad range of end-to-end wireless telecommunications solutions, and one of which specializes in construction projects in the power industry and is included in the Company’s Power Generation and Industrial segment. For all but one of these acquisitions, the Company acquired all of the equity interests in the related entities. For the telecommunications company specializing in wireless telecommunications solutions, the Company acquired 96% of the entity’s equity interests, with the obligation to acquire the balance over time.
The aggregate purchase price for these entities, as adjusted, was composed of approximately $175.1 million in cash, net of cash acquired, plus earn-out liabilities and a mandatorily redeemable non-controlling interest valued at approximately $22.2 million and $17.8 million, respectively. The Company refers to its traditional earn-out arrangements and the mandatorily redeemable non-controlling interest collectively as “Earn-outs,” which are generally payable annually and are recorded within other current and other long-term liabilities in the consolidated balance sheets. Earn-outs for the 2019 acquisitions have terms ranging from three to five years. As of March 31, 2020, the range of remaining potential undiscounted Earn-out liabilities for the 2019 acquisitions was estimated to be between $2 million and $71 million; however, there is no maximum payment amount. Determination of the estimated fair values of the net assets acquired and the estimated Earn-out liabilities for these acquisitions was preliminary as of March 31, 2020; as a result, further adjustments to these estimates may occur.
Pro Forma Financial Information and Acquisition Results. For the three month periods ended March 31, 2020 and 2019, unaudited supplemental pro forma revenue totaled approximately $1.4 billion and $1.6 billion, respectively, and unaudited supplemental pro forma net income totaled approximately $37.3 million and $48.1 million, respectively.
For the three month periods ended March 31, 2020 and 2019, the Company’s consolidated results of operations included acquisition-related revenue of approximately $49.5 million and $39.7 million, respectively, and included acquisition-related net loss of approximately $1.2 million and $6.1 million, respectively, based on the Company’s consolidated effective tax rates. These acquisition-related results do not include the effects of acquisition costs or interest expense associated with consideration paid for the related acquisitions.