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Related Party Transactions
9 Months Ended
Sep. 30, 2022
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions MasTec purchases, rents and leases equipment and purchases various types of supplies and services used in its business, including ancillary construction services, project-related site restoration and marketing, business development and administrative activities, from a number of different vendors on a non-exclusive basis, and from time to time, rents equipment to, sells certain supplies, or performs construction services on behalf of, entities in which members of subsidiary management have ownership or commercial interests. For the three month periods ended September 30, 2022 and 2021, such payments to related party entities totaled approximately $8.0 million and $20.7 million, respectively, and for the nine month periods ended September 30, 2022 and 2021, totaled approximately $22.7 million and $71.8 million, respectively. Payables associated with such arrangements totaled approximately $2.5 million and $0.6 million as of September 30, 2022 and December 31, 2021, respectively. Revenue from
such related party arrangements totaled approximately $2.4 million and $0.8 million for the three month periods ended September 30, 2022 and 2021, respectively, and totaled approximately $7.4 million and $2.9 million for the nine month periods ended September 30, 2022 and 2021, respectively. Related amounts receivable, net, totaled approximately $2.2 million and $0.4 million as of September 30, 2022 and December 31, 2021, respectively.
The Company rents and leases equipment and purchases certain supplies and servicing from CCI. Juan Carlos Mas, who is the brother of Jorge Mas, Chairman of MasTec’s Board of Directors, and José R. Mas, MasTec’s Chief Executive Officer, serves as the chairman of CCI, and a member of management of a MasTec subsidiary and an entity that is owned by the Mas family are minority owners. For the three and nine month periods ended September 30, 2022, MasTec paid CCI $1.1 million and $2.9 million, respectively, related to this activity, and for the three and nine month periods ended September 30, 2021, paid approximately $8.0 million and $18.6 million, net of rebates, respectively. Amounts payable to CCI totaled approximately $1.1 million and $0.8 million as of September 30, 2022 and December 31, 2021, respectively. The Company has also rented equipment to CCI. Revenue from equipment rentals to CCI totaled approximately $0.2 million for both the three and nine month periods ended September 30, 2022, and such revenue was de minimis for the three and nine month periods ended September 30, 2021. As of September 30, 2022, related amounts receivable totaled $0.1 million, and as of December 31, 2021, there were no amounts receivable.
MasTec has a subcontracting arrangement with an entity for the performance of construction services, the minority owners of which include an entity controlled by Jorge Mas and José R. Mas, along with two members of management of a MasTec subsidiary. For the three month periods ended September 30, 2022 and 2021, MasTec incurred subcontracting expenses in connection with this arrangement of approximately $0.1 million and $41.1 million, respectively, and for the nine month periods ended September 30, 2022 and 2021, incurred subcontracting expenses of approximately $0.2 million and $86.9 million, respectively. As of September 30, 2022 and December 31, 2021, related amounts payable totaled approximately $0.1 million and $0.5 million, respectively.
MasTec has a leasing arrangement for an aircraft that is owned by an entity that Jorge Mas owns. For the three month periods ended September 30, 2022 and 2021, MasTec paid approximately $0.7 million and $0.6 million, respectively, related to this leasing arrangement, and paid approximately $1.9 million for both the nine month periods ended September 30, 2022 and 2021.
MasTec has performed construction services on behalf of a professional Miami soccer franchise (the “Franchise”) in which Jorge Mas and José R. Mas are majority owners. Services provided by MasTec have included the construction of a soccer facility and stadium as well as wireless infrastructure services. MasTec may perform additional construction services for the Franchise in the future. Payments for other expenses related to the Franchise for both the three month periods ended September 30, 2022 and 2021 totaled approximately $0.1 million, and totaled approximately $0.4 million and $0.3 million for the nine month periods ended September 30, 2022 and 2021, respectively.
Beginning in the fourth quarter of 2021, MasTec has a subcontracting arrangement to perform construction services for an entity, of which José R. Mas acquired a minority interest, and of which a member of management of a MasTec subsidiary owns the remaining interest. For the three and nine month periods ended September 30, 2022, revenue recognized by MasTec under this arrangement totaled approximately $38.0 million and $98.7 million, respectively, and as of September 30, 2022, related amounts receivable totaled approximately $36.6 million. There were no amounts receivable as of December 31, 2021. MasTec pays a management fee to this entity in connection with the subcontracting arrangement, under which MasTec incurred approximately $0.4 million and $0.9 million for the three and nine month periods ended September 30, 2022, of which $0.4 million was payable as of September 30, 2022.
MasTec leases employees and provides satellite communication services to a customer in which Jorge Mas and José R. Mas own a majority interest. Charges to this customer under these arrangements totaled approximately $0.3 million for both the three month periods ended September 30, 2022 and 2021, and totaled approximately $0.9 million for both the nine month periods ended September 30, 2022 and 2021. As of both September 30, 2022 and December 31, 2021, related amounts receivable totaled approximately $0.8 million.
The Company has advanced amounts on behalf of an entity that was acquired in 2021. Amounts outstanding for such advances, which are expected to be settled under customary terms associated with the related purchase agreement, totaled approximately $2.0 million and $0.5 million as of September 30, 2022 and December 31, 2021, respectively. Additionally, in 2021, the Company advanced amounts to the former owner of an acquired business. There were no remaining amounts outstanding as of September 30, 2022, and as of December 31, 2021, approximately $1.0 million of such advances was outstanding. In addition, the Company has a subcontracting arrangement with an entity in which it has a 25% interest. The Company’s interest in this entity is accounted for as an equity method investment. For the three and nine month periods ended September 30, 2022, the Company made equity contributions to this entity of approximately $0.1 million and $0.6 million, respectively. As of September 30, 2022 and December 31, 2021, the Company’s net investment in this entity was a liability of approximately $1.2 million and $1.6 million, respectively, which net amounts each included approximately $2.3 million of accounts receivable, net, less deferred revenue, related to the subcontracting arrangement. Additionally, the Company has certain arrangements with an entity in which members of management have an ownership interest, including a fee arrangement in conjunction with a $15.0 million letter of credit issued by the Company on behalf of this entity. Income recognized in connection with these arrangements totaled approximately $0.2 million for both the three month periods ended September 30, 2022 and 2021, and totaled $0.6 million for both the nine month periods ended September 30, 2022 and 2021. As of September 30, 2022 and December 31, 2021, related amounts receivable totaled $0.6 million and $0.4 million, respectively.
Non-controlling interests in entities consolidated by the Company represent ownership interests held by members of management of certain of the Company’s subsidiaries, primarily in the Company’s Oil and Gas segment. In June 2021, the Company acquired an additional 15% of the non-controlling interests in one of these entities from two members of subsidiary management for $6.8 million in cash.
Split Dollar Agreements
MasTec has split dollar life insurance agreements with trusts, for one of which Jorge Mas is a trustee, and for the other of which José R. Mas is a trustee. For both the three month periods ended September 30, 2022 and 2021, the Company paid $0.6 million in connection with the agreements for Jorge Mas, and no payments were made for José R. Mas. For both the nine month periods ended September 30, 2022 and 2021, the Company paid $1.1 million in connection with the agreements for Jorge Mas, and paid $0.7 million for José R. Mas. As of September 30, 2022 and December 31, 2021, life insurance assets associated with these agreements totaled approximately $25.8 million and $24.0 million, respectively.