Stock-Based Compensation and Other Employee Benefit Plans

9 Months Ended

Sep. 30, 2020

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 has stock-based compensation plans, under which shares of the Company’s common stock are reserved for issuance. Under all stock-based compensation plans in effect as of September 30, 2020, there were approximately 3,011,000 shares available for future grant. Non-cash stock-based compensation expense under all plans totaled $5.6 million and $4.2 million for the three month periods ended September 30, 2020 and 2019, respectively, and totaled $15.5 million and $12.1 million for the nine month periods ended September 30, 2020 and 2019, respectively. Income tax benefits associated with stock-based compensation arrangements totaled $1.4 million and $1.0 million for the three month periods ended September 30, 2020 and 2019, respectively. For the nine month periods ended September 30, 2020 and 2019 income tax benefits totaled $3.6 million and $5.3 million, respectively, including net tax deficiencies related to the vesting of share-based payment awards totaling $0.1 million and net tax benefits totaling $2.3 million, 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 September 30, 2020, total unearned compensation related to restricted shares was approximately $31.0 million, which is expected to be recognized over a weighted average period of approximately 2.0 years. The fair value of restricted shares that vested, which is based on the market price on the date of vesting, totaled $0.2 million for both the three month periods ended September 30, 2020 and 2019, and totaled $6.7 million and $14.1 million for the nine month periods ended September 30, 2020 and 2019, respectively.

Activity, restricted shares: (a)	Restricted Shares	Per Share Weighted Average Grant Date Fair Value
Non-vested restricted shares, as of December 31, 2019	1,221,593	$	45.36
Granted	936,946	27.15
Vested	(183,885)	39.60
Canceled/forfeited	(239,900)	58.96
Non-vested restricted shares, as of September 30, 2020	1,734,754	$	34.26

(a)    Includes 2,300 restricted stock units as of September 30, 2020.

Employee Stock Purchase Plans

The Company has certain employee stock purchase plans (collectively, “ESPPs”), under which shares of the Company’s common stock are available for purchase by eligible employees. The following table provides details pertaining to the Company’s ESPPs for the periods indicated:

	For the Nine Months Ended September 30,
	2020		2019
Cash proceeds (in millions)	$	5.5	$	3.4
Common shares issued	193,655		87,014
Weighted average price per share	$	28.29	$	39.23
Weighted average per share grant date fair value	$	8.61	$	9.97