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Segments and Related Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segments and Related Information Segments and Related Information
Segment Discussion
The Company manages its operations under five operating segments, which represent its five reportable segments: (1) Communications; (2) Clean Energy and Infrastructure; (3) Oil and Gas; (4) Power Delivery and (5) Other. This structure is generally focused on broad end-user markets for the Company’s labor-based construction services. All five reportable segments derive their revenue from the engineering, installation and maintenance of infrastructure, primarily in North America.
The Communications segment performs engineering, construction, maintenance and customer fulfillment activities related to communications infrastructure, primarily for wireless and wireline/fiber communications and install-to-the-home customers, as well as infrastructure for utilities, among others. The Clean Energy and Infrastructure segment primarily serves energy, utility, government and other end-markets through the installation and construction of power generation facilities, primarily from clean energy and renewable sources, such as wind, solar, biomass, natural gas and hydrogen, as well as battery storage for renewable energy and various types of heavy civil and industrial infrastructure. The Company performs engineering, construction and maintenance services for pipelines and processing facilities for the energy and utilities industries through its Oil and Gas segment. The Power Delivery segment primarily serves the energy and utility industries through the engineering, construction and maintenance of power transmission and distribution infrastructure, including electrical and gas transmission lines, distribution network systems and substations. The Other segment includes certain equity investees, the services of which vary from those provided by the Company’s primary segments, as well as other small business units that perform construction and other services for certain international end-markets.
The accounting policies of the reportable segments are the same as those described in Note 1 - Business, Basis of Presentation and Significant Accounting Policies. Intercompany revenue and costs among the reportable segments are accounted for as if the sales were to third parties because these items are based on negotiated fees between the segments involved. All intercompany transactions and balances are eliminated in consolidation. Intercompany revenue and costs between entities within a reportable segment are eliminated to arrive at segment totals. Eliminations between segments are separately presented. Corporate results include amounts related to corporate functions such as administration, including for legal and professional matters, changes in the fair value of Earn-outs and certain investments, acquisition-related transaction costs and other discrete items, including goodwill and/or intangible asset impairment. Segment results include certain allocations of centralized costs such as general liability, medical and workers’ compensation insurance and certain information technology and interest costs. Income tax expense, which is recorded within corporate results, is managed on a consolidated basis and is not allocated to the reportable segments.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. As appropriate, the Company supplements the reporting of its consolidated financial information determined in accordance with U.S. GAAP with certain non-U.S. GAAP financial measures, including EBITDA. The Company believes these non-U.S. GAAP measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. The Company uses EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results for its reportable segments, as well as items that can vary widely across different industries or among companies within the same industry. Segment EBITDA is calculated in a manner consistent with consolidated EBITDA.
Summarized financial information for MasTec’s reportable segments is presented and reconciled to consolidated financial information for total MasTec in the following tables, including a reconciliation of consolidated income before income taxes to EBITDA, all of which are presented in millions. The tables below may contain slight summation differences due to rounding.
For the Years Ended December 31,
Revenue:202120202019
Communications (a)
$2,551.1 $2,512.2 $2,618.8 
Clean Energy and Infrastructure1,865.0 1,526.9 1,034.3 
Oil and Gas2,540.5 1,789.8 3,117.2 
Power Delivery1,016.8 506.5 413.9 
Other0.0 0.6 0.2 
Eliminations(21.6)(15.0)(1.2)
Consolidated revenue$7,951.8 $6,321.0 $7,183.2 
(a)    Revenue generated primarily by utilities customers represented 20.8%, 15.6% and 15.0% of Communications segment revenue for the years ended December 31, 2021, 2020 and 2019, respectively.
For the Years Ended December 31,
EBITDA:202120202019
Communications$269.5 $270.1 $208.8 
Clean Energy and Infrastructure75.0 80.4 40.1 
Oil and Gas557.6 510.9 634.2 
Power Delivery68.0 14.9 29.5 
Other33.8 30.7 26.5 
Corporate(97.5)(124.5)(115.7)
Consolidated EBITDA$906.3 $782.5 $823.4 

For the year ended December 31, 2021, Corporate EBITDA included a bargain purchase gain of $3.5 million and acquisition and integration costs of $3.6 million. In 2020, Corporate EBITDA included $5.6 million of debt extinguishment losses, and in 2019, included $3.3 million of indefinite-lived pre-qualification intangible asset impairment charges.
For the Years Ended December 31,
Depreciation and Amortization:202120202019
Communications$99.3 $87.1 $65.0 
Clean Energy and Infrastructure43.5 18.2 14.1 
Oil and Gas207.8 156.6 127.2 
Power Delivery61.5 24.7 20.0 
Other0.0 0.1 0.1 
Corporate10.7 11.1 9.1 
Consolidated depreciation and amortization$422.8 $297.8 $235.5 
As of December 31,
Assets:202120202019
Communications$2,031.5 $1,941.9 $1,958.1 
Clean Energy and Infrastructure1,067.0 653.7 570.5 
Oil and Gas1,450.6 1,631.1 1,762.4 
Power Delivery2,209.4 541.6 463.9 
Other238.1 191.8 192.2 
Corporate124.8 267.8 49.9 
Consolidated segment assets$7,121.4 $5,227.8 $4,997.0 
For the Years Ended December 31,
Capital Expenditures:202120202019
Communications$50.6 $38.4 $36.0 
Clean Energy and Infrastructure44.6 14.0 12.7 
Oil and Gas55.7 149.2 59.7 
Power Delivery13.0 3.8 6.8 
Other0.0 0.0 0.0 
Corporate6.2 8.3 11.3 
Consolidated capital expenditures$170.1 $213.7 $126.5 
For the Years Ended December 31,
EBITDA Reconciliation:202120202019
Income before income taxes$430.1 $425.2 $510.9 
Plus:
Interest expense, net53.4 59.6 77.0 
Depreciation345.6 258.8 212.5 
Amortization77.2 38.9 23.0 
Consolidated EBITDA$906.3 $782.5 $823.4 
Foreign Operations and Other. MasTec operates primarily in the United States and Canada, and, to a far lesser extent, in Mexico, the Caribbean and India. Revenue derived from U.S. operations totaled $7.8 billion, $6.2 billion and $6.9 billion for the years ended December 31, 2021, 2020 and 2019, respectively. Revenue derived from foreign operations totaled $165.2 million, $133.1 million and $233.5 million for the years ended December 31, 2021, 2020 and 2019, respectively, substantially all was derived from the Company’s Canadian operations in its Oil and Gas segment, and, to a lesser extent, from the Company’s operations in Mexico. Long-lived assets held in the U.S. included property and equipment, net, of $1,411.6 million, $959.5 million and $874.7 million as of December 31, 2021, 2020 and 2019, respectively, and, for the Company’s businesses in foreign countries, totaled $24.5 million, $22.8 million and $31.1 million, respectively. Intangible assets and goodwill, net, related to the Company’s U.S. operations totaled approximately $2.1 billion as of December 31, 2021, and totaled $1.4 billion as of both December 31, 2020 and 2019. For the Company’s businesses in foreign countries, intangible assets and goodwill, net, totaled approximately $43.8 million, $50.5 million and $56.4 million, as of December 31, 2021, 2020 and 2019, respectively. Substantially all of the Company’s long-lived and intangible assets and goodwill in foreign countries relate to its Canadian operations. As of December 31, 2021, amounts due from customers from which foreign revenue was derived accounted for approximately 2% of the Company’s consolidated net accounts receivable position, which represents accounts receivable, net, less deferred revenue. As of both December 31, 2020 and 2019, amounts due from customers from which foreign revenue was derived accounted for approximately 5% of the Company’s consolidated net accounts receivable position. Revenue from governmental entities for the years ended December 31, 2021, 2020 and 2019 totaled approximately 5%, 2% and 1%, respectively, of total revenue, substantially all of which was derived from the Company’s U.S. operations.
Significant Customers
Revenue concentration information for significant customers as a percentage of total consolidated revenue was as follows:
For the Years Ended December 31,
202120202019
Customer:
Enbridge, Inc. (a)
16%4%—%
AT&T (excluding DIRECTV®) (b)
9%15%15%
Equitrans Midstream Corporation (c)
4%3%11%
(a)    The Company’s relationship with Enbridge, Inc. is based upon various construction contracts for pipeline activities, for which the related revenue is included within the Oil and Gas segment.
(b)    The Company’s relationship with AT&T is based upon multiple separate master service and other service agreements, including for installation and maintenance services, as well as construction/installation contracts for AT&T’s: (i) wireless; (ii) wireline/fiber; and (iii) other installation services, including smart city initiatives. Revenue from AT&T is included within the Communications segment. DIRECTV® was spun off from AT&T in July 2021. Revenue from DIRECTV® is excluded from AT&T for all periods presented.
(c)    The Company's relationship with Equitrans Midstream Corporation and its affiliates is based upon various construction contracts for pipeline activities, for which the related revenue is included within the Oil and Gas segment.