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Segments and Related Information
 12 Months Ended
Dec. 31, 2022
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 primarily from the engineering, installation and maintenance of infrastructure, primarily in North America. In the first quarter of 2022, the Company began integrating the acquisition of HMG
into its operations. The HMG acquisition was completed on December 30, 2021, with its initial balance sheet reported within the Company’s Power Delivery segment. During the first quarter of 2022, the Company reported portions of HMG’s operations within its Power Delivery, Communications and Oil and Gas segments, as appropriate, and HMG’s corporate functions within its Corporate results. Accordingly, HMG’s December 31, 2021 balance sheet information was recast to conform with the new reporting structure.
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; various types of heavy civil and industrial infrastructure, including rail; and environmental remediation services. The Company performs engineering, construction and maintenance services for pipeline distribution, including natural gas, carbon capture sequestration, water and pipeline integrity services 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; and environmental planning and compliance services. The Other segment includes certain equity investees, the services of which may 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, including treasury and administration functions, including for legal and professional matters, as well as changes in the fair value of Earn-outs, other liabilities and certain investments, acquisition-related transaction costs and other discrete items, including certain integration activities and debt transaction costs. Segment results include certain allocations of centralized costs such as general liability, medical and workers’ compensation insurance and certain information technology and interest costs, as well as certain discrete items, including certain acquisition and business integration and/or streamlining 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:202220212020
Communications (a)
$3,233.7 $2,551.1 $2,512.2 
Clean Energy and Infrastructure2,618.6 1,865.0 1,526.9 
Oil and Gas1,219.6 2,540.5 1,789.8 
Power Delivery2,725.2 1,016.8 506.5 
Other— 0.0 0.6 
Eliminations(19.1)(21.6)(15.0)
Consolidated revenue$9,778.0 $7,951.8 $6,321.0 
(a)    Revenue generated primarily by utilities customers represented 23.6%, 20.8% and 15.6% of Communications segment revenue for the years ended December 31, 2022, 2021 and 2020, respectively.
For the Years Ended December 31,
EBITDA:202220212020
Communications$327.1 $269.5 $270.1 
Clean Energy and Infrastructure102.8 75.0 80.4 
Oil and Gas163.5 557.6 510.9 
Power Delivery202.9 68.0 14.9 
Other31.8 33.8 30.7 
Segment EBITDA$828.1 $1,003.8 $907.0 
For the Years Ended December 31,
EBITDA Reconciliation:202220212020
Income before income taxes$43.1 $430.1 $425.2 
Plus:
Interest expense, net112.3 53.4 59.6 
Depreciation371.2 345.6 258.8 
Amortization135.9 77.2 38.9 
Corporate EBITDA 165.6 97.5 124.5 
Segment EBITDA$828.1 $1,003.8 $907.0 
For the year ended December 31, 2022, Communications, Clean Energy and Infrastructure, Oil and Gas and Power Delivery EBITDA included $4.7 million, $6.4 million, $8.0 million and $39.0 million, respectively, of acquisition and integration costs related to the Company’s recent acquisitions, and Corporate EBITDA included $27.9 million of such costs. For the year ended December 31, 2021, Corporate EBITDA included such acquisition and integration costs of $3.6 million. For the years ended December 31, 2022 and 2021, Corporate EBITDA included fair value losses related to an investment of $7.7 million and $7.8 million, respectively, and for the year ended December 31, 2020, Corporate EBITDA included fair value gains of $10.1 million. For the years ended December 31, 2022 and 2021, Corporate EBITDA included bargain purchase gains of $0.2 million and $3.5 million, respectively. For the year ended December 31, 2022, Other segment EBITDA included $2.8 million of project gains from a proportionately consolidated non-controlled Canadian joint venture. For the year ended December 31, 2020, Corporate EBITDA included $5.6 million of debt extinguishment losses.
For the Years Ended December 31,
Depreciation and Amortization:202220212020
Communications$126.4 $99.3 $87.1 
Clean Energy and Infrastructure87.0 43.5 18.2 
Oil and Gas134.6 207.8 156.6 
Power Delivery147.8 61.5 24.7 
Other— 0.0 0.1 
Corporate11.3 10.7 11.1 
Consolidated depreciation and amortization$507.1 $422.8 $297.8 
As of December 31,
Assets:2022
2021 (a)
2020
Communications$2,378.6 $2,100.9 $1,941.9 
Clean Energy and Infrastructure2,979.9 1,067.0 653.7 
Oil and Gas1,544.2 1,527.6 1,631.1 
Power Delivery1,967.9 2,017.2 541.6 
Other297.3 238.1 191.8 
Corporate125.4 170.6 267.8 
Consolidated segment assets$9,293.3 $7,121.4 $5,227.9 
(a)     Segment assets as of December 31, 2021 were recast during the first quarter of 2022 to conform with the change in segment reporting for the HMG acquisition, the effect of which was a decrease in Power Delivery segment assets of $192.2 million, an increase in Communications and Oil and Gas segment assets of $69.4 million and $77.0 million, respectively, and an increase in Corporate assets of $45.8 million.
For the Years Ended December 31,
Capital Expenditures:202220212020
Communications$87.1 $50.6 $38.4 
Clean Energy and Infrastructure35.8 44.6 14.0 
Oil and Gas49.0 55.7 149.2 
Power Delivery83.4 13.0 3.8 
Other— 0.0 0.0 
Corporate8.0 6.2 8.3 
Consolidated capital expenditures$263.4 $170.1 $213.7 
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 $9.6 billion, $7.8 billion and $6.2 billion for the years ended December 31, 2022, 2021 and 2020, respectively, and revenue derived from foreign operations totaled $149.9 million, $165.2 million and $133.1 million, respectively. Revenue from foreign operations was derived primarily from the Company’s Canadian operations in its Oil and Gas segment. Long-lived assets held in the United States included property and equipment, net, of $1,733.1 million, $1,411.6 million and $959.5 million as of December 31, 2022, 2021 and 2020, respectively, and for the Company’s businesses in foreign countries, totaled $21.0 million, $24.5 million and $22.8 million, respectively. Intangible assets and goodwill, net, related to the Company’s U.S. operations totaled approximately $3.0 billion, $2.1 billion and $1.4 billion as of December 31, 2022, 2021 and 2020, respectively. For the Company’s businesses in foreign countries, intangible assets and goodwill, net, totaled approximately $35.5 million, $43.8 million and $50.5 million as of December 31, 2022, 2021 and 2020, 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, 2022, 2021 and 2020, amounts due from customers from which foreign revenue was derived accounted for approximately 1%, 2% and 5%, respectively, of the Company’s consolidated net accounts receivable position, which represents accounts receivable, net, less deferred revenue. Revenue from governmental entities for the years ended December 31, 2022, 2021 and 2020 totaled approximately 7%, 5% and 2%, respectively, of total revenue, substantially all of which was derived from the Company’s U.S. operations.
Significant Customers
For the year ended December 31, 2022, no customer represented greater than 10% of the Company’s total consolidated revenue. For the year ended December 31, 2021, revenue for Enbridge, Inc. represented 16% of the Company’s total consolidated revenue, and for the year ended December 31, 2020, revenue for AT&T represented 15% of the Company’s total consolidated revenue. 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. 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.