SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30, 2017~~March 31, 2021

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __ to __

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ☑ No ¨☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes þ☑ No ¨☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act.) Yes ¨☐ No þ☑

As of ~~October 30, 2017,~~May 3, 2021, MasTec, Inc. had ~~82,760,624~~74,311,342 shares of common stock ~~$0.10 par value,~~ outstanding.

MASTEC, INC.

FORM 10-Q

QUARTER ENDED ~~SEPTEMBER 30, 2017~~MARCH 31, 2021

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION


~~ITEM 1.~~	ITEM 1. FINANCIAL STATEMENTS

MASTEC, INC.

~~CONDENSED UNAUDITED~~ CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited - in thousands, except per share amounts)


	For the Three Months Ended March 31,
	2021		2020
Revenue	$	1,775,424	$	1,416,604
Costs of revenue, excluding depreciation and amortization	1,513,859		1,226,297
Depreciation	79,264		53,089
Amortization of intangible assets	11,247		7,391
General and administrative expenses	73,108		85,514
Interest expense, net	12,459		17,004
Equity in earnings of unconsolidated affiliates	(7,346)		(7,834)

Other income, net	(2,596)		(1,342)
Income before income taxes	$	95,429	$	36,485
Provision for income taxes	(29,317)		(423)
Net income	$	66,112	$	36,062
Net income (loss) attributable to non-controlling interests	463		(168)
Net income attributable to MasTec, Inc.	$	65,649	$	36,230

Earnings per share (Note 2):
Basic earnings per share	$	0.91	$	0.48
Basic weighted average common shares outstanding	72,439		74,738

Diluted earnings per share	$	0.89	$	0.48
Diluted weighted average common shares outstanding	73,846		75,413

For the Three Months Ended September 30 For the Nine Months Ended September 30
2017 2016 2017 2016
Revenue $ 1,955,752
$ 1,586,181
$ 5,004,116
$ 3,792,811
Costs of revenue, excluding depreciation and amortization 1,726,173
1,368,988
4,323,642
3,321,571
Depreciation and amortization 50,101
42,584
138,384
122,249
General and administrative expenses 66,397
67,131
202,001
195,031
Interest expense, net 17,578
13,097
44,966
37,895
Equity in (earnings) losses of unconsolidated affiliates (7,399 ) 6
(15,105 ) (3,549 )
Other income, net (4,677 ) (971 ) (4,102 ) (12,803 )
Income before income taxes $ 107,579
$ 95,346
$ 314,330
$ 132,417
Provision for income taxes (43,378 ) (38,816 ) (126,170 ) (54,331 )
Net income $ 64,201
$ 56,530
$ 188,160
$ 78,086
Net income attributable to non-controlling interests 449
253
1,770
414
Net income attributable to MasTec, Inc. $ 63,752

$ 56,277
$ 186,390
$ 77,672

Earnings per share (Note 2):
Basic earnings per share $ 0.79
$ 0.70
$ 2.31
$ 0.97
Basic weighted average common shares outstanding 80,953
80,462
80,859
80,323

Diluted earnings per share $ 0.77
$ 0.69
$ 2.27
$ 0.96
Diluted weighted average common shares outstanding 82,386
81,545
82,281
81,241

The accompanying notes are an integral part of these ~~condensed unaudited~~ consolidated financial statements.

MASTEC, INC.

~~CONDENSED UNAUDITED~~ CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited - in thousands)


	For the Three Months Ended March 31,
	2021		2020
Net income	$	66,112	$	36,062
Other comprehensive income (loss):
Foreign currency translation gains (losses), net of tax	371		(296)
Unrealized gains (losses) on investment activity, net of tax	13,839		(22,961)
Comprehensive income	$	80,322	$	12,805
Comprehensive income (loss) attributable to non-controlling interests	463		(168)
Comprehensive income attributable to MasTec, Inc.	$	79,859	$	12,973

For the Three Months Ended September 30 For the Nine Months Ended September 30
2017 2016 2017 2016
Net income $ 64,201
$ 56,530
$ 188,160
$ 78,086
Other comprehensive income:
Foreign currency translation gains (losses), net of tax 641
(1,454 ) 2,415
4,417
Unrealized gains (losses) on equity investee activity, net of tax 808
(345 ) (1,287 ) (12,932 )
Comprehensive income $ 65,650
$ 54,731
$ 189,288
$ 69,571
Comprehensive income attributable to non-controlling interests 449
253
1,770
414
Comprehensive income attributable to MasTec, Inc. $ 65,201
$ 54,478
$ 187,518
$ 69,157

The accompanying notes are an integral part of these ~~condensed unaudited~~ consolidated financial statements.

MASTEC, INC.

~~CONDENSED UNAUDITED~~ CONSOLIDATED BALANCE SHEETS

(unaudited - in thousands, except ~~shares and per~~ share ~~amounts)~~information)


	March 31, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	512,407	$	423,118
Accounts receivable, net of allowance	876,715		784,488
Contract assets	958,064		969,743
Inventories, net	92,677		89,645
Prepaid expenses	59,825		60,631
Other current assets	50,736		31,390
Total current assets	$	2,550,424	$	2,359,015
Property and equipment, net	1,024,509		982,328
Operating lease assets	162,359		176,573
Goodwill, net	1,262,718		1,243,034
Other intangible assets, net	225,566		184,043
Other long-term assets	312,727		282,856
Total assets	$	5,538,303	$	5,227,849
Liabilities and equity
Current liabilities:
Current portion of long-term debt, including finance leases	$	157,257	$	145,110
Current portion of operating lease liabilities	69,184		72,481
Accounts payable	632,088		571,269
Accrued salaries and wages	176,450		135,316
Other accrued expenses	236,753		187,647
Contract liabilities	259,488		228,388
Other current liabilities	101,680		74,988
Total current liabilities	$	1,632,900	$	1,415,199
Long-term debt, including finance leases	1,170,419		1,157,632
Long-term operating lease liabilities	106,971		116,506
Deferred income taxes	304,006		302,938
Other long-term liabilities	235,032		230,049
Total liabilities	$	3,449,328	$	3,222,324
Commitments and contingencies (Note 14)	0		0
Equity
Preferred stock, $1.00 par value: authorized shares - 5,000,000; issued and outstanding shares – NaN	$	0	$	0
Common stock, $0.10 par value: authorized shares - 145,000,000; issued shares - 93,253,268 and 93,107,440 (including 1,870,460 and 1,843,041 of unvested stock awards) as of March 31, 2021 and December 31, 2020, respectively	9,325		9,311
Capital surplus	840,567		837,453
Retained earnings	1,899,206		1,833,557
Accumulated other comprehensive loss	(77,234)		(91,444)
Treasury stock, at cost: 18,941,926 shares as of both March 31, 2021 and December 31, 2020, respectively	(586,955)		(586,955)
Total MasTec, Inc. shareholders’ equity	$	2,084,909	$	2,001,922
Non-controlling interests	$	4,066	$	3,603
Total equity	$	2,088,975	$	2,005,525
Total liabilities and equity	$	5,538,303	$	5,227,849

September 30,
2017 December 31,
2016
Assets
Current assets:
Cash and cash equivalents $ 43,822
$ 38,767
Accounts receivable, net 1,534,790
1,156,031
Inventories, net 84,460
111,031
Prepaid expenses 53,832
41,548
Other current assets 30,843
55,109
Total current assets $ 1,747,747
$ 1,402,486
Property and equipment, net 691,430
549,084
Goodwill, net 1,135,450
995,874
Other intangible assets, net 195,454
179,711
Other long-term assets 172,094
55,977
Total assets $ 3,942,175
$ 3,183,132
Liabilities and equity
Current liabilities:
Current portion of long-term debt $ 86,547
$ 64,600
Accounts payable 457,213
363,668
Accrued salaries and wages 119,553
67,126
Other accrued expenses 128,769
112,291
Billings in excess of costs and earnings 111,898
161,459
Other current liabilities 98,171
70,846
Total current liabilities $ 1,002,151
$ 839,990
Long-term debt 1,192,311
961,379
Deferred income taxes 274,465
178,355
Other long-term liabilities 170,203
99,774
Total liabilities $ 2,639,130
$ 2,079,498
Commitments and contingencies (Note 14)

Equity
Preferred stock, $1.00 par value: authorized shares - 5,000,000; issued and outstanding shares – none $ —
$ —
Common stock, $0.10 par value: authorized shares - 145,000,000; issued shares - 90,843,339 and 90,634,771 (including 1,790,632 and 1,927,286 of unvested restricted shares) as of September 30, 2017 and December 31, 2016, respectively 9,084
9,063
Capital surplus 800,297
788,914
Retained earnings 696,331
509,941
Accumulated other comprehensive loss (64,686 ) (65,814 )
Treasury stock, at cost: 8,094,004 shares as of both September 30, 2017 and December 31, 2016 (145,573 ) (145,573 )
Total MasTec, Inc. shareholders’ equity $ 1,295,453
$ 1,096,531
Non-controlling interests $ 7,592
$ 7,103
Total equity $ 1,303,045
$ 1,103,634
Total liabilities and equity $ 3,942,175
$ 3,183,132

The accompanying notes are an integral part of these ~~condensed unaudited~~ consolidated financial statements.

MASTEC, INC.

~~CONDENSED UNAUDITED~~ CONSOLIDATED STATEMENTS OF ~~CASH FLOWS~~EQUITY

(unaudited - in ~~thousands)~~thousands, except shares)


	Common Stock			Treasury Stock			Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Loss		Total MasTec, Inc. Shareholders’ Equity		Non-Controlling Interests		Total Equity
	Shares	Amount		Shares	Amount
For the Three Months Ended March 31, 2021
Balance as of December 31, 2020	93,107,440	$	9,311	(18,941,926)	$	(586,955)	$	837,453	$	1,833,557	$	(91,444)	$	2,001,922	$	3,603	$	2,005,525
Net income									65,649				65,649		463		66,112
Other comprehensive income											14,210		14,210				14,210
Non-cash stock-based compensation							5,528						5,528				5,528
Issuance of restricted shares, net	138,081	14					(14)						0				0
Other stock issuances, net of shares withheld for taxes	7,747	0					(2,400)						(2,400)				(2,400)


Balance as of March 31, 2021	93,253,268	$	9,325	(18,941,926)	$	(586,955)	$	840,567	$	1,899,206	$	(77,234)	$	2,084,909	$	4,066	$	2,088,975

For the Three Months Ended March 31, 2020
Balance as of December 31, 2019	91,909,430	$	9,191	(15,344,917)	$	(466,727)	$	809,753	$	1,510,709	$	(75,706)	$	1,787,220	$	4,471	$	1,791,691
Net income (loss)									36,230				36,230		(168)		36,062
Other comprehensive loss											(23,257)		(23,257)				(23,257)
Non-cash stock-based compensation							4,049						4,049				4,049
Issuance of restricted shares, net	694,779	69					(69)						0				0
Other stock issuances, net of shares withheld for taxes	13,823	2					692						694				694
Acquisition of treasury stock, at cost				(3,569,924)	(119,426)								(119,426)				(119,426)

Balance as of March 31, 2020	92,618,032	$	9,262	(18,914,841)	$	(586,153)	$	814,425	$	1,546,939	$	(98,963)	$	1,685,510	$	4,303	$	1,689,813

For the Nine Months Ended September 30
2017 2016
Cash flows from operating activities:
Net income $ 188,160
$ 78,086
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 138,384
122,249
Non-cash interest expense, net 2,375
2,209
Non-cash stock-based compensation expense 10,551
11,291
Provision for (benefit from) deferred income taxes 92,188
(1,339 )
Equity in earnings of unconsolidated affiliates (15,105 ) (3,549 )
(Gains) losses on sales of assets, net, including fixed assets held-for-sale (3,335 ) 378
Other non-cash items, net 14,920
1,951
Changes in assets and liabilities, net of acquisitions:
Accounts receivable (334,383 ) (302,590 )
Inventories 33,579
(18,900 )
Other assets, current and long-term portion (61,900 ) 48,032
Accounts payable and accrued expenses 132,963
172,731
Billings in excess of costs and earnings (54,199 ) 16,581
Book overdrafts (4,603 ) 8,883
Other liabilities, current and long-term portion 39,030
(8,872 )
Net cash provided by operating activities $ 178,625
$ 127,141
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired (115,995 ) (4,102 )
Capital expenditures (83,330 ) (89,050 )
Proceeds from sale of property and equipment 13,585
6,824
Payments for other investments (77,105 ) (8,858 )
Proceeds from other investments 13,416
1,125
Net cash used in investing activities $ (249,429 ) $ (94,061 )
Cash flows from financing activities:
Proceeds from credit facilities 2,002,430
1,186,816
Repayments of credit facilities (1,840,409 ) (1,149,930 )
Repayments of other borrowings (12,080 ) (8,188 )
Payments of capital lease obligations (48,748 ) (41,828 )
Payments of acquisition-related contingent consideration (18,843 ) (19,822 )
Distributions to non-controlling interests (1,280 ) —
Proceeds from stock-based awards, net 853
3,938
Other financing activities, net (6,301 ) 1,385
Net cash provided by (used in) financing activities $ 75,622
$ (27,629 )
Effect of currency translation on cash 237
(1,008 )
Net increase in cash and cash equivalents $ 5,055
$ 4,443
Cash and cash equivalents - beginning of period $ 38,767
$ 4,984
Cash and cash equivalents - end of period $ 43,822
$ 9,427

Supplemental cash flow information:
Interest paid $ 47,163
$ 40,433
Income taxes paid, net of refunds $ 77,533
$ 15,141
Supplemental disclosure of non-cash information:
Acquisition-related contingent consideration, new business combinations

$ 89,614
$ —
Equipment acquired under capital lease and financing arrangements $ 129,567
$ 13,015
Accrued capital expenditures $ 1,345
$ 4,119

The accompanying notes are an integral part of these ~~condensed unaudited~~ consolidated financial statements.

MASTEC, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited - in thousands)


	For the Three Months Ended March 31,
	2021		2020
Cash flows from operating activities:
Net income	$	66,112	$	36,062
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	79,264		53,089
Amortization of intangible assets	11,247		7,391
Non-cash interest expense, net	783		725
Non-cash stock-based compensation expense	5,528		4,049
Benefit from deferred income taxes	(19,838)		(12,614)


Equity in earnings of unconsolidated affiliates	(7,346)		(7,834)
Gains on sales of assets, net	(1,965)		(2,407)
Other non-cash items, net	(5,578)		734
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(61,993)		48,337
Contract assets	26,799		26,311
Inventories	651		5,932
Other assets, current and long-term portion	(7,961)		17,906
Accounts payable and accrued expenses	153,386		34,058
Contract liabilities	14,782		2,603
Other liabilities, current and long-term portion	3,293		(11,076)
Net cash provided by operating activities	$	257,164	$	203,266
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired	(88,646)		0
Capital expenditures	(48,058)		(60,594)
Proceeds from sale of property and equipment	6,035		8,363
Payments for other investments	(4,350)		(12,000)
Proceeds from other investments	557		648
Other investing activities, net	(150)		4,843
Net cash used in investing activities	$	(134,612)	$	(58,740)
Cash flows from financing activities:
Proceeds from credit facilities	18,155		675,935
Repayments of credit facilities	(8,869)		(671,780)



Payments of finance lease obligations	(38,222)		(30,856)


Proceeds from stock-based awards	0		1,476
Payments for stock-based awards	(3,753)		(572)
Repurchases of common stock	0		(119,427)


Other financing activities, net	(502)		0
Net cash used in financing activities	$	(33,191)	$	(145,224)
Effect of currency translation on cash	(72)		934
Net increase in cash and cash equivalents	$	89,289	$	236
Cash and cash equivalents - beginning of period	$	423,118	$	71,427
Cash and cash equivalents - end of period	$	512,407	$	71,663


Supplemental cash flow information:
Interest paid	$	21,689	$	21,479

Supplemental disclosure of non-cash information:
Additions to property and equipment from finance leases	$	50,772	$	26,932

The accompanying notes are an integral part of these consolidated financial statements.

MASTEC, INC.

NOTES TO ~~CONDENSED UNAUDITED~~ CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 – Business, Basis of Presentation and Significant Accounting Policies

Nature of the Business

MasTec, Inc. (collectively with its subsidiaries, “MasTec” or the “Company”) is a leading infrastructure construction company operating mainly throughout North America across a range of industries. The Company’s primary activities include the engineering, building, installation, maintenance and upgrade of communications, energy, utility and ~~utility~~other infrastructure, such as: wireless, wireline/fiber ~~install-to-the-home~~ and customer fulfillment activities; ~~petroleum~~power generation, including from clean energy and ~~natural gas~~renewable sources; pipeline infrastructure; electrical utility transmission and distribution; ~~power generation;~~ heavy civil; and industrial infrastructure. MasTec’s customers are primarily in these industries. MasTec reports its results under ~~five~~5 reportable segments: (1) Communications; (2) Clean Energy and Infrastructure; (3) Oil and Gas; ~~(3)~~(4) Electrical Transmission; ~~(4) Power Generation and Industrial;~~ and (5) Other. See Note 13 - Segments and Related Information.

Basis of Presentation

The accompanying ~~condensed unaudited~~ consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying ~~condensed~~ consolidated balance sheet as of December 31, ~~2016~~2020 is derived from the Company’s audited financial statements as of that date. Because certain information and footnote disclosures have been condensed or omitted, these ~~condensed unaudited~~ consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, ~~2016~~2020 contained in the Company’s ~~2016~~2020 Annual Report on Form 10-K (the ~~“2016~~“2020 Form 10-K”). In management’s opinion, all normal and recurring adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been included. ~~Certain~~When necessary, certain prior year amounts have been reclassified to conform to the current period presentation. Interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. The Company believes that the disclosures made in these ~~condensed unaudited~~ consolidated financial statements are adequate to make the information not misleading.

Principles of Consolidation

The accompanying ~~condensed unaudited~~ consolidated financial statements include MasTec, Inc. and its subsidiaries and include the accounts of all majority owned subsidiaries over which the Company exercises control and, when applicable, entities in which the Company has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. Other parties’ interests in entities that MasTec consolidates are reported as non-controlling interests within ~~equity.~~equity, except for mandatorily redeemable non-controlling interests, which are recorded within liabilities. Net income or loss attributable to non-controlling interests is reported as a separate line item below net income or loss. The ~~Company’s~~Company applies the equity method of accounting for its investments in entities for which ~~the Company~~it does not have a controlling financial interest, but ~~for~~over which it has the ability to exert significant ~~influence, are accounted for using the equity method~~influence. See Note 4 - Fair Value of accounting. Equity method investments are recorded as other long-term assets, or, for investments in a net liability position, within other long-term liabilities. Income or loss from these investments is recorded as a separate line item in the statements of operations. Intercompany profits or losses associated with the Company’s equity method investments are eliminated until realized by the investee in transactions with third parties.Financial Instruments. For equity investees in which the Company has an undivided interest in the assets, liabilities and profits or losses of an unincorporated entity, but ~~the Company~~ does not exercise control over the entity, the Company consolidates its proportional interest in the accounts of the entity. ~~The cost method is used for investments in entities for which the Company does not have the ability to exert significant influence.~~

Management determines whether each business entity in which it has equity interests, debt, or other investments constitutes a variable interest entity (“VIE”) based on the nature and characteristics of such arrangements. If an investment arrangement is determined to be a VIE, then management determines if the Company is the VIE’s primary beneficiary by evaluating several factors, including the Company’s: (i) risks and responsibilities; (ii) ownership interests; (iii) decision making powers; and (iv) financial interests, among other factors. If management determines the Company is the primary beneficiary of a VIE, then it would be consolidated, and other parties’ interests in the VIE would be accounted for as non-controlling interests. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the primary activities of the VIE and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE, which, in either case, could be significant to the VIE. As of September 30, 2017, the Company determined that certain of its investment arrangements were VIEs; however, because it does not have the power to direct the primary activities that most significantly impact the economic performance of these VIEs, the Company is not the primary beneficiary, and accordingly, has not consolidated these VIEs.

Translation of Foreign Currencies

The assets and liabilities of foreign subsidiaries with a functional currency other than the U.S. dollar are translated into U.S. dollars at period-end exchange rates, with resulting translation gains or losses ~~accumulated~~included within other comprehensive income or loss. Revenue and expenses are translated into U.S. dollars at average rates of exchange during the applicable period. Substantially all of the Company’s foreign operations use their local currency as their functional currency. For foreign operations for which the local currency is not the functional currency, the operation’s non-monetary assets are remeasured into U.S. dollars at historical exchange rates. All other accounts are remeasured at current exchange rates. Gains or losses from remeasurement are included in other income or expense, net. Currency gains or losses resulting from transactions executed in currencies other than the functional currency are included in other income or expense, net.

In these ~~condensed unaudited~~ consolidated financial statements, “$” means U.S. dollars unless otherwise noted.

Management Estimates

The preparation of consolidated financial statements in ~~conformity~~accordance with U.S. GAAP requires the use of estimates and assumptions that affect

the amounts reported in the consolidated financial statements and accompanying notes. ~~Key~~These estimates ~~include: the recognition of revenue~~are based on historical experience and ~~project profit or loss (which the Company defines as project revenue, less project costs of revenue, including project-related depreciation), in particular, on construction contracts accounted for~~various other assumptions that management believes to be reasonable under the ~~percentage-of-completion method,~~circumstances, including the potential future effects of the COVID-19 pandemic, climate change, and other relevant global and/or macroeconomic trends and events. These estimates form the basis for ~~which~~making judgments about the ~~recorded amounts require estimates of costs to complete~~Company’s operating results and the ~~amount of probable contract price adjustments; allowances for doubtful accounts; estimated fair~~carrying values of ~~goodwill~~assets and intangible assets; acquisition-related contingent consideration and investments in equity investees; asset lives used in computing depreciation and amortization; fair values of financial instruments; accrued self-insured claims; share-based compensation;liabilities that are not readily apparent from other ~~accruals and allowances; accounting for income taxes; and the estimated impact of litigation and other contingencies.~~sources. While management believes that such estimates are reasonable when considered in conjunction with the Company’s consolidated financial position and results of operations taken as a whole, actual results could differ materially from ~~those~~these estimates.

Key estimates include: the recognition of revenue and project profit or loss, which the Company defines as project revenue, less project costs of revenue, including project-related depreciation, in particular, on construction contracts accounted for under the cost-to-cost method, for which the recorded amounts require estimates of costs to complete and the amount and probability of variable consideration included in the contract transaction price; fair value estimates, including those related to acquisitions, valuations of goodwill and intangible assets, acquisition-related contingent consideration and other liabilities, equity investments and other long-lived assets; allowances for credit losses; asset lives used in

computing depreciation and amortization; fair values of financial instruments; self-insurance liabilities; other accruals and allowances; income taxes; and the estimated effects of litigation and other contingencies.

COVID-19 Pandemic

During the first quarter of 2020, the World Health Organization declared a global pandemic related to the rapidly growing outbreak of a novel strain of coronavirus (“COVID-19”). The COVID-19 pandemic disrupted business activities and significantly affected global economic conditions in 2020 and continuing into 2021 as federal, state and local governments imposed restrictions and mitigation measures to address the public health crisis, the effects of which resulted in workforce, supply chain and production disruptions and created significant uncertainties in the U.S. and global economies. While the adverse effects of these restrictions and mitigation measures partially subsided in the second half of 2020 and into 2021, the possibility of future restrictions remains in the event of a rise in the number of COVID-19 cases in the future.

As a provider of essential services, all of the Company’s business segments continued to operate throughout 2020 and into 2021, and where safe and possible, the Company’s customers generally directed it to maintain normal work schedules. The Company’s business model has, thus far, proven resilient, and management continues to adapt to the changing operational and economic environment that has resulted from the COVID-19 pandemic. Management’s top priority has been to take appropriate actions to protect the health and safety of its employees, customers and business partners. The Company has adjusted its standard operating procedures within its business operations to ensure employee and customer safety, and is continually monitoring evolving health guidelines and responding to changes as appropriate. The COVID-19 pandemic had a negative impact on the Company’s operations in 2020 and is expected to continue to affect its business activities in 2021. These impacts include lost productivity from governmental permitting approval delays, reduced crew productivity due to social distancing, other mitigation measures and other factors, the health and availability of work crews or other key personnel, including subcontractors or supply chain disruptions, and/or delayed project start dates or project shutdowns or cancellations that may be mandated or requested by governmental authorities or others, all of which could result in lower revenue or higher operating costs and/or create lower levels of overhead cost absorption.

Several relief measures have been enacted in response to the effects of the COVID-19 pandemic, including the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) and the Coronavirus Response and Relief Supplemental Appropriations Act (the “Coronavirus Relief Act”). The CARES Act permitted deferral and/or reduction of certain federal and payroll tax amounts, certain of which the Company pursued, including the deferral of approximately $59 million of payroll taxes, half of which are due by December 31, 2021, with the remainder due by December 31, 2022. The Company will continue to monitor and evaluate the potential effects, usefulness of, and qualification for, additional COVID-19 relief measures on the Company’s financial position, results of operations and cash flows.

Notwithstanding moderation of the COVID-19 pandemic and easing of governmental and other restrictions, the Company may continue to experience negative effects on its business and operations from possible longer-term changes in consumer and customer behavior, and/or from continuing negative economic conditions. The Company believes that it has taken appropriate steps to mitigate the impacts of the COVID-19 pandemic on its business; however, the potential effects of the COVID-19 pandemic are uncertain, as they depend upon numerous evolving factors that management may not be able to accurately predict. The availability of effective treatments and vaccines, the speed with which they can be administered to the public, the degree to which the public is willing to be vaccinated and the degree that vaccines are effective in preventing infection or illness from existing or new strains of COVID-19, along with the length and extent of any continuing economic and market disruptions are unknown, and, therefore, any future impacts on our business, financial condition and/or results of operations cannot be quantified or predicted with specificity.

Significant Accounting Policies

Revenue Recognition

The Company recognizes revenue from contracts with customers under Accounting Standards Codification (“ASC”) Topic 606 (“Topic 606”). Under Topic 606, revenue is recognized when, or as, control of promised goods and services is transferred to customers, and the amount of revenue recognized reflects the consideration to which an entity expects to be entitled in exchange for the goods and services transferred. Revenue is ~~derived~~primarily recognized by the Company over time utilizing the cost-to-cost measure of progress, which best depicts the continuous transfer of control of goods or services to the customer, and correspondingly, when performance obligations are satisfied for the related contracts.

Contracts. The Company derives revenue primarily from construction projects performed ~~under~~under: (i) master and other service agreements, ~~as well as from~~which provide a menu of available services in a specific geographic territory that are utilized on an as-needed basis, and are typically priced using either a time and materials or a fixed price per unit basis; and (ii) contracts for specific projects ~~or jobs~~ requiring the construction and installation of an entire infrastructure system, or specified units within an ~~entire~~ infrastructure ~~system. The Company frequently provides services under~~system, which are subject to multiple pricing options, including fixed price, unit price, ~~or fixed price master service or other service agreements. Revenue and related costs for master and other service agreements billed on a~~ time and materials, ~~basis are recognized as the services are rendered.~~or cost plus a markup. Revenue derived from projects performed under master service and other service agreements totaled ~~32%~~28% and ~~38%~~42% of consolidated revenue for the three month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016, respectively, and totaled 35% and 43% for the nine month periods ended September 30, 2017 and 2016,~~2020, respectively. ~~The Company also performs services under~~

For certain master service and other service agreements ~~on a fixed fee basis,~~ under which ~~MasTec furnishes specified units of~~the Company performs installation and maintenance services, primarily for install-to-the-home service ~~for a fixed price per unit of service and~~providers in its Communications segment, revenue is recognized asat a point in time. This is generally when the ~~services are rendered. Revenue from fixed price contracts provides~~work order has been fulfilled, which is typically the same day the work is initiated. Point in time revenue accounted for ~~a fixed amount~~approximately 5% and 6% of consolidated revenue for the ~~entire project, subject to certain additions for changed scope or specifications. Revenue from these contracts, as well as for certain projects pursuant to master~~three month periods ended March 31, 2021 and 2020, respectively. Substantially all of the Company’s other ~~service agreements,~~revenue is recognized using the percentage-of-completion method, under which the percentage of revenue to be recognized for a given project is measured by the percentage of costs incurred to date on the contract to the total estimated costs for the contract. Such contracts provide that the customer accept completion of progress to date and compensate the Company for services rendered, which may be measured in terms of costs incurred, units installed, hours expended or some other measure of progress. Contract costs include all direct materials, labor and subcontracted costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and the operational costs of capital equipment. Much of the materials associated with the Company’s work are customer-furnished and are therefore not included in contract revenue and costs.over time.

The total contract transaction price and cost estimation ~~process~~processes used for recognizing revenue ~~recognized~~over time under the ~~percentage-of-completion~~cost-to-cost method is based on the professional knowledge and experience of the Company’s project managers, engineers and financial professionals. Management reviews estimates of total contract ~~revenue~~transaction price and total project costs on an ongoing basis. Changes in job performance, job conditions and management’s assessment of expected ~~contract settlements~~variable consideration are factors that influence estimates of the total contract ~~value and~~transaction price, total costs to complete those contracts and ~~therefore,~~ the Company’s profit recognition. Changes in these factors ~~may~~could result in revisions to ~~costs and income and their effects are recognized~~revenue in the period in which the revisions are determined, which could materially affect the Company’s consolidated results of operations for that period. Provisions for losses on

uncompleted contracts are recorded in the period in which such ~~changes~~losses are ~~recognized.~~determined. For both the ~~nine~~three month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016,~~2020, project profit was affected by less than 5% as a result of changes in contract estimates included in projects that were in process as of December 31, ~~2016~~2020 and ~~2015. Provisions~~2019. Revenue recognized for ~~losses on uncompleted contracts are made~~the three month periods ended March 31, 2021 and 2020 as a result of changes in ~~the period~~total contract transaction price estimates, including from variable consideration, from performance obligations satisfied or partially satisfied in ~~which such losses are determined to be probable~~prior periods, totaled approximately $13.8 million and ~~the amount~~$17.8 million, respectively.

The Company may incur certain costs that can be ~~reasonably estimated.~~capitalized, such as initial set-up or mobilization costs. Such costs, which are amortized over the life of the respective projects, were $3.7 million and $5.5 million as of March 31, 2021 and December 31, 2020.

Performance Obligations.A performance obligation is a contractual promise to transfer a distinct good or service to a customer, and is the unit of account under Topic 606. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. The vast majority of ~~fixed price contracts~~the Company’s performance obligations are completed within one year.

~~The~~Remaining performance obligations represent the amount of unearned transaction prices under contracts for which work is wholly or partially unperformed, including the Company’s share of unearned transaction prices from its proportionately consolidated non-controlled joint ventures. As of March 31, 2021, the amount of the Company’s remaining performance obligations was $5.0 billion. Based on current expectations, the Company expects to recognize approximately $4.0 billion of its remaining performance obligations as revenue during 2021, with the majority of the remaining balance to be recognized in 2022.

Variable Consideration. Transaction prices for the Company’s contracts may ~~incur costs subject to~~include variable consideration, which comprises items such as change orders, ~~whether approved or unapproved by~~claims and incentives. Management estimates variable consideration for a performance obligation utilizing estimation methods that it believes best predict the ~~customer, and/or claims related~~amount of consideration to ~~certain contracts. Management determines~~which the ~~probability that such costs~~Company will be ~~recovered~~entitled. Management’s estimates of variable consideration and the determination of whether to include estimated amounts in transaction prices are based ~~upon~~largely on engineering studies and legal opinions, past practices with the customer, specific discussions, correspondence or preliminary negotiations with the ~~customer. The Company treats such costs as a cost~~customer and all other relevant information that is reasonably available at the time of ~~contract performance~~the estimate. To the extent unapproved change orders, claims and other variable consideration reflected in transaction prices are not resolved in the ~~period incurred if it is not probable that the costs will be recovered, and defers costs~~Company’s favor, or ~~recognizes revenue up~~ to the ~~amount~~extent incentives reflected in transaction prices are not earned, there could be reductions in, or reversals of, ~~the related cost if it is probable that the contract price will be adjusted and can be reliably estimated.~~ previously recognized revenue.

As of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, the Company ~~had~~included approximately ~~$77~~$59 million and ~~$17~~$51 million, respectively, of change orders and/or claims ~~that had been included as contract price adjustments on~~in transaction prices for certain contracts that were in the process of being resolved in the ~~normal~~ordinary course of business, including through negotiation, arbitration and other proceedings. These ~~contract~~transaction price adjustments, ~~which~~when earned, are included within ~~costs and earnings in excess of billings~~contract assets or ~~billed~~ accounts receivable, net of allowance, as ~~appropriate, represent management’s best estimate of contract revenue that has been earned and that management believes is probable of collection.~~appropriate. As of both ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, these change orders ~~were primarily~~and/or claims related to ~~contracts in~~projects across the ~~Oil and Gas segment.~~Company’s segments. The Company actively engages ~~in substantive meetings~~ with its customers to complete the final approval process, and generally expects these processes to be completed within one year. ~~The amounts~~Amounts ultimately realized upon final ~~acceptance~~agreement by ~~its~~ customers could be higher or lower than such estimated amounts.

Billings In Excess of Costs and Earnings (“BIEC”) on uncompleted contracts is classified within current liabilities. Costs and Earnings In Excess of Billings (“CIEB”), which is also referred to as work in process, is classified within current assets. Work in process on contracts is based on work performed but not yet billed to customers as per individual contract terms.

Recently Issued Accounting Pronouncements

~~There have been no changes in~~The discussion below describes the ~~expected dates~~effects of ~~adoption or estimated effects on the Company’s consolidated financial statements of recently issued~~recent accounting pronouncements, as updated from ~~those disclosed~~the discussion in the Company’s ~~2016~~2020 Form 10-K. ~~See below for additional discussion of recently issued accounting pronouncements.~~

Accounting Pronouncements ~~Not Yet~~ Adopted in 2021

In ~~August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)2017-12,~~ ~~Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities~~ (“ASU 2017-12”). ASU 2017-12 amends the hedge accounting model in Topic 815 to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also simplifies certain documentation and assessment requirements. ASU 2017-12 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption and their effects should be reflected as of the beginning of the fiscal year of adoption. The presentation and disclosure requirements are effective on a prospective basis. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements.

~~In May 2017, FASB issued ASU 2017-09,~~ ~~Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting~~ (“ASU 2017-09”). ASU 2017-09 clarifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. Limited and administrative modifications that do not change the value, vesting conditions, or classification of the award are exempt from following the modification guidance in Topic 718. ASU 2017-09 is effective on a prospective basis for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of this ASU to have a material effect on its consolidated financial statements.

~~In February 2017,~~2019, the FASB issued ASU ~~2017-05,~~ ~~Other Income- Gains and Losses from~~2019-12, Income Taxes (Topic 740): Simplifying the ~~Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and~~ Accounting for ~~Partial Sales of Nonfinancial Assets~~(“Income Taxes (“ASU ~~2017-05”~~2019-12”)~~. ASU 2017-05 clarifies~~, which eliminates certain exceptions to the existing guidance ~~under Subtopic 610-20 that was issued as part of~~for income taxes related to the ~~new revenue standard, including~~approach for intra-period tax allocations, the methodology for calculating income taxes in an interim period and the recognition of ~~gains and losses on the sale or transfer of nonfinancial assets to noncustomers, and clarifies accounting~~deferred tax liabilities for ~~contributions of nonfinancial assets to joint ventures, among other requirements. ASU 2017-05 is effective on a retrospective~~outside basis for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements.

~~In May 2014, the FASB issued ASU 2014-09,~~ ~~Revenue from Contracts with Customers (Topic 606)~~ (“ASU 2014-09”). The core principle of this ASU is that a company will recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. In doing so, companies will need to use judgment and make estimates when evaluating contract terms and other relevant facts and circumstances. Additionally, ASU 2014-09 requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU 2015-14, ~~Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date~~, which delayed the effective date of ASU 2014-09 by one year. ASU 2014-09, as amended, is effective using either the full retrospective or modified retrospective transition approach for fiscal years, and for interim periods within those years, beginning after December 15, 2017. In 2016, the FASB issued several accounting standards updates to clarify certain topics within ASU 2014-09. The Company will adopt ASU 2014-09, and its related clarifying ASUs, as of January 1, 2018.

The Company has substantially completed its assessment of the potential effects of these ASUs on its consolidated financial statements, business processes, systems and controls. The Company’s assessment included a detailed review of representative contracts at each of the Company’s business units and a comparison of its historical accounting policies and practices to the new standard. Based on the Company’s review of various types of revenue arrangements, the Company expects to recognize revenue and earnings over time utilizing the cost-to-cost measure of progress for its fixed price contracts and certain master service and other service agreements, consistent with current practice. For these contracts, the cost-to-cost measure of progress best depicts the transfer of control of goods or services to the customer under the new standard. The Company has substantially completed its analysis of the information necessary to enable the preparation of the financial statements and related disclosures under the new standard. As part of this analysis, the Company evaluated its information technology capabilities and systems, and does not expect to incur significant information technology costs to modify systems currently in place. The Company will implement targeted changes to its internal reporting processes to facilitate gathering the data needed for reporting and disclosure under the new standard. The Company will also implement updates to its control processes and procedures, as necessary, based on changes resulting from the new standard. The Company does not expect any such updates to materially affect the Company’s internal controls over financial reporting.

The Company anticipates adopting the standard using the modified retrospective transition approach. Under this approach, the new standard would apply to all new contracts initiated on or after January 1, 2018. For existing contracts that have remaining obligations as of January 1, 2018, any difference between the recognition criteria in these ASUs and the Company’s current revenue recognition practices would be recognized using a cumulative effect adjustment to the opening balance of retained earnings. Any potential effect of adoption of these ASUs has not yet been quantified; however, based on the review of contracts across all of the Company’s business units to date, the adoption of these ASUs is not expected to have a material effect on the timing or amount of revenue recognized as compared to current practices. The Company is training its business units for the implementation of the new standard, and continues developing the disclosures required by the new standard. The Company is also reviewing certain contracts entered into by its business units subsequent to its initial assessment that are expected to have performance obligations remaining as of January 1, 2018 for any cumulative effect adjustments that may be required upon adoption.

~~Accounting Pronouncements Adopted as of January 1, 2017~~

~~The Company adopted ASU 2016-09,~~ ~~Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting~~ (“ASU 2016-09”) effective January 1, 2017. Under ASU 2016-09, excess tax benefits (“windfalls”) or tax deficiencies (“shortfalls”) are recognized in the income statement, rather than as additional paid-in-capital as under the previous guidance, and are presented as operating cash flows,

~~rather than as a financing activity.~~differences. This ASU also ~~increased~~simplifies the ~~amount of tax that can be withheld~~accounting for income taxes by an employer for employee tax withholdings without resulting in liability classification of an award. Payments to taxing authorities for such employee withholdings are presented as financing activities. ASU 2016-09 also allows companies to account for forfeitures of share-based payments as they occur or to estimate such amounts. The provisions of ASU 2016-09 that were applicableclarifying and amending existing guidance related to the Company were adopted on a prospective basis; the retrospective requirement to classify payments to taxing authorities for employee withholdings as a financing activity was consistent with the Company’s existing methodology, therefore did not resulteffects of enacted changes in ~~a change. The adoption of ASU 2016-09 is expected to result in volatility in income~~ tax ~~expense given that windfalls~~laws or ~~shortfalls are recognized in income tax expense~~rates in the ~~periods~~effective tax rate computation, the recognition of franchise tax and the evaluation of a step-up in the tax basis of goodwill, among other clarifications. ASU 2019-12, which ~~they occur. The other components~~the Company adopted during the first quarter of ~~this ASU~~2021, did not have a material effect on the Company’s consolidated financial statements. ~~See Note 2 - Earnings Per Share, Note 9 - Stock-Based Compensation and Other Employee Benefit Plans and Note 12 - Income Taxes for additional information.~~

Note 2 – Earnings Per Share

Basic earnings ~~or loss~~ per share is computed by dividing net income ~~or loss~~ attributable to MasTec by the weighted average number of common shares outstanding for the period, which excludes non-participating unvested restricted share awards. Diluted earnings per share is computed by dividing net income attributable to MasTec by the weighted average number of fully diluted shares, as calculated under the treasury stock method, which includes the potential effect of dilutive common stock equivalents, such as issued but unvested restricted ~~shares and/or outstanding but unexercised stock options. The Company has no remaining outstanding stock options; all options under the Company’s stock option grants were exercised in 2016.~~shares. If the Company reports a loss, rather than income, the computation of diluted loss per share excludes the effect of dilutive common stock equivalents, as their effect would be anti-dilutive.

As discussed in Note 1 - Business, Basis of Presentation and Significant Accounting Policies, the Company adopted ASU 2016-09 effective January 1, 2017 on a prospective basis. ASU 2016-09 changed the recognition of excess tax benefits or tax deficiencies upon the vesting of share-based payment awards from additional paid-in capital, within equity, to income tax benefit or expense, within the statement of operations. As a result, excess tax benefits or deficiencies under ASU 2016-09 are excluded from assumed proceeds under the treasury stock method. Previously, excess tax benefits or tax deficiencies were included within assumed proceeds. For both the three and nine month periods ended September 30, 2017, this resulted in the inclusion of approximately 0.3 million incremental shares in the Company’s total weighted average diluted shares outstanding.

The following table provides details underlying the Company’s earnings per share calculations for the periods indicated (in thousands):


	For the Three Months Ended March 31,
	2021		2020
Net income attributable to MasTec:
Net income - basic and diluted (a)	$	65,649	$	36,230
Weighted average shares outstanding:
Weighted average shares outstanding - basic	72,439		74,738
Dilutive common stock equivalents (b)	1,407		675
Weighted average shares outstanding - diluted	73,846		75,413

(a)Calculated as total net income less amounts attributable to non-controlling interests.

(b)For the three month period ended March 31, 2021, there were 22,527 anti-dilutive common stock equivalents.

For the Three Months Ended September 30 For the Nine Months Ended September 30
2017 2016 2017 2016
Net income attributable to MasTec:
Net income - basic and diluted ^(a)
$ 63,752
$ 56,277
$ 186,390
$ 77,672
Weighted average shares outstanding:
Weighted average shares outstanding - basic 80,953
80,462
80,859
80,323
Dilutive common stock equivalents 1,433
1,083
1,422
918
Weighted average shares outstanding - diluted 82,386
81,545
82,281
81,241

Additional information:
Weighted average anti-dilutive common stock equivalents ^(b)
—
1
12
—


~~(a)~~	~~Calculated as total net income less amounts attributable to non-controlling interests.~~


~~(b)~~	~~Represents anti-dilutive common stock equivalents as calculated under the treasury stock method.~~

Note 3 -– Goodwill and Other Intangible Assets

The following table provides ~~details of~~balances for goodwill by reportable segment as of ~~September 30, 2017~~March 31, 2021 (in millions):


	Communications		Clean Energy and Infrastructure		Oil and Gas		Electrical Transmission		Total Goodwill
Goodwill, gross	$	561.9	$	166.4	$	509.7	$	150.1	$	1,388.1
Accumulated impairment loss	0		0		(125.4)		0		(125.4)
Goodwill, net	$	561.9	$	166.4	$	384.3	$	150.1	$	1,262.7

Communications Oil and Gas
Electrical
Transmission
Power Generation and Industrial Total Goodwill
Goodwill, gross $ 462.4
$ 461.6
$ 149.9
$ 137.0
$ 1,210.9
Accumulated impairment losses —
(75.4 ) —
—
(75.4 )
Goodwill, net $ 462.4
$ 386.2
$ 149.9
$ 137.0
$ 1,135.5

For the ~~nine~~three month period ended ~~September 30, 2017,~~March 31, 2021, goodwill included additions ~~to goodwill~~of $19.7 million from new business combinations ~~totaled $135.3 million.~~and a decrease of $0.2 million from measurement period adjustments. Currency translation effects related to goodwill and accumulated impairment losses for the three month period ended March 31, 2021 totaled approximately ~~$9.8~~$1.8 million of gains and ~~$5.4~~$1.6 million of losses, ~~respectively, for the nine month period ended September 30, 2017. For the nine month period ended~~ ~~September 30, 2016~~, additions to goodwill from accruals of acquisition-related contingent consideration totaled $5.8 million, and currency translation effects related to goodwill and accumulated impairment losses totaled $6.0 million of gains and $3.1 million of losses, 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			Customer Relationships and Backlog		Pre-Qualifications		Other (a)		Total
Other intangible assets, gross, as of December 31, 2020	$	34.5		$	297.9	$	73.8	$	26.4	$	432.6
Accumulated amortization				(218.5)		(10.6)		(19.5)		(248.6)
Other intangible assets, net, as of December 31, 2020	$	34.5		$	79.4	$	63.2	$	6.9	$	184.0
Additions from new business combinations	0			48.0		0		4.3		52.3

Currency translation adjustments	0			0		0.5		0		0.5
Amortization expense				(7.9)		(2.7)		(0.6)		(11.2)
Other intangible assets, net, as of March 31, 2021	$	34.5		$	119.5	$	61.0	$	10.6	$	225.6

Other Intangible Assets
Non-Amortizing Amortizing
Trade Names Pre-Qualifications Customer Relationships and Backlog
Other ^(a)
Total
Other intangible assets, gross, as of December 31, 2016 $ 34.5
$ 74.6
$ 195.1
$ 19.1
$ 323.3
Accumulated amortization (131.9 ) (11.7 ) (143.6 )
Other intangible assets, net, as of December 31, 2016 $ 34.5
$ 74.6
$ 63.2
$ 7.4
$ 179.7
Additions from new business combinations —
—
24.4
2.4
26.8
Amortization expense (13.9 ) (1.1 ) (15.0 )
Currency translation adjustments —
3.4
0.5
0.1
4.0
Other intangible assets, net, as of September 30, 2017 $ 34.5
$ 78.0
$ 74.2
$ 8.8
$ 195.5


~~(a)~~	~~Consists principally of trade names and non-compete agreements.~~

(a)Consists principally of trade names and non-compete agreements.

~~Amortization expense~~Quarterly Assessment for Indicators of Impairment. During the first quarter of 2021, in conjunction with the Company’s quarterly review for indicators of impairment, management performed a quantitative assessment of the goodwill associated with 1 reporting unit within the Oil and Gas segment. Based on the results of this assessment, management determined that the estimated fair value of the reporting unit substantially exceeded its carrying value. Significant changes in the assumptions or estimates used in management’s assessment, such as a reduction in profitability and/or cash flows, could result in non-cash impairment charges to goodwill and indefinite-lived intangible assets ~~for~~in the future.

Recent Acquisitions

The Company seeks to grow and diversify its business both organically and through acquisitions and/or other strategic arrangements in order to deepen its market presence, broaden its geographic reach and expand its service offerings.

2021 Acquisitions. For the three month ~~periods ended~~ ~~September 30, 2017~~ ~~and~~ ~~2016~~ ~~totaled~~ ~~$6.0 million~~ ~~and~~ ~~$5.2 million, respectively, and for the nine month periods ended~~ ~~September 30, 2017~~ ~~and~~ ~~2016, totaled $15.0 million and $15.7 million, respectively.~~

~~2017 Acquisitions.During the nine month~~ period ended ~~September 30, 2017~~,March 31, 2021, MasTec completed ~~three~~2 acquisitions, including ~~(i) a wireline/fiber deployment construction contractor, which is included~~all of the equity interests in ~~the Company’s Communications segment; (ii)~~ a heavy civil infrastructure construction ~~services~~ company ~~which~~that is included inwithin the Company’s ~~Power Generation~~Clean Energy and ~~Industrial~~Infrastructure segment, and ~~(iii) an oil~~all of the equity interests in a pipeline integrity and gas ~~pipeline equipment company, which~~distribution contractor that is included inwithin the Company’s Oil and Gas segment.The aggregate purchase price for these entities was composed of approximately $90 million in cash, net of cash acquired. Determination of the estimated fair values of net assets acquired for these acquisitions was preliminary as of March 31, 2021; as a result, further adjustments to these estimates may occur.

2020 Acquisitions. During the year ended December 31, 2020, MasTec completed 5 acquisitions. These acquisitions included the

equity interests of 2 entities. Through a consolidated subsidiary, the Company acquired all of the equity interests in a heavy civil infrastructure construction company that is included within the Company’s Clean Energy and Infrastructure segment. As of the date of acquisition, the Company’s ownership interest in the consolidated subsidiary was 96%, and as of both March 31, 2021 and December 31, 2020, was 91%, with the non-controlling interests owned by members of subsidiary management. The Company also acquired all of the equity interests in a utility service and telecommunications construction contractor that is included within the Company’s Communications segment. Additionally, the Company acquired the assets of 3 entities in 2020, 1 that specializes in wireless telecommunications and 1 that specializes in install-to-the-home services, both of which are included within the Company’s Communications segment, and 1 that specializes in electrical transmission services that is included within the Company’s Electrical Transmission segment.

The aggregate purchase price for these entities was composed of approximately $23.5 million in cash, net of cash acquired, with an additional $3.2 million due through 2023, subject to certain indemnification provisions, and earn-out liabilities with 5-year terms valued at approximately $8.3 million. Earn-outs are generally payable annually and are recorded within other current and other long-term liabilities in the consolidated balance sheets. As of March 31, 2021, the range of remaining potential undiscounted earn-out liabilities for the 2020 acquisitions was estimated to be between $1 million and $13 million; however, there is no maximum payment amount. Determination of the estimated fair values of net assets acquired and ~~the estimated~~ earn-out liabilities for these acquisitions iswas preliminary as of ~~September 30, 2017, and~~March 31, 2021; as a result, further adjustments to ~~management’s preliminary~~these estimates may occur.

~~The following table summarizes the estimated fair values of consideration paid~~Pro Forma Financial Information and ~~identifiable assets acquired and liabilities assumed as of the respective dates of acquisition (in millions).~~

Acquisition consideration: 2017
Cash $ 118.8
Fair value of contingent consideration (earn-out liability) 89.6
Total consideration transferred $ 208.4
Identifiable assets acquired and liabilities assumed:
Current assets, primarily composed of accounts receivable and $2.8 million of cash acquired $ 42.7
Property and equipment 56.9
Amortizing intangible assets 26.8
Other long-term assets 0.5
Current liabilities, including current portion of capital lease obligations and long-term debt (28.4 )
Long-term debt, including capital lease obligations (9.9 )
Deferred income taxes (15.5 )
Total identifiable net assets $ 73.1
Goodwill $ 135.3
Total net assets acquired, including goodwill $ 208.4

Amortizing intangible assets related to the 2017 acquisitions are primarily composed of customer relationships, backlog and other amortizing intangible assets, which had weighted average lives of approximately 11 years, 4 years and 7 years, respectively, and 10 years in total, and will be amortized in a manner consistent with the pattern in which the related benefits are expected to be consumed. The goodwill balances for the respective acquisitions represent the estimated value of each acquired company’s geographic presence in key markets, their assembled workforce, and management team industry-specific project management expertise, as well as synergies expected to be achieved from the combined operations of the acquired companies and MasTec. Approximately $75 million of the acquired goodwill balance as of September 30, 2017 is expected to be tax deductible.

The contingent consideration included in the table above equals the acquired companies’ earnings before interest, taxes, depreciation and amortization (“EBITDA”) above certain thresholds, if applicable, for a period of five years, as set forth in the respective purchase agreements, which amounts are payable annually. The fair values of the earn-out liabilities were estimated using income approaches such as discounted cash flows or option pricing models and incorporate significant inputs not observable in the market. Key assumptions in the estimated valuations include the discount rate and probability-weighted EBITDA projections. Significant changes in any of these assumptions could result in a significantly higher or lower potential earn-out liability.

Acquisition Results. For the three ~~and nine~~ month periods ended ~~September 30, 2017,~~March 31, 2021 and 2020, unaudited supplemental pro forma revenue totaled approximately ~~$1,955.8 million~~$1.8 billion and ~~$5,077.4 million,~~$1.6 billion, respectively, and unaudited supplemental pro forma net income totaled approximately ~~$64.4~~$68.6 million and ~~$192.0~~$46.7 million, respectively. ~~For the three and nine month periods ended~~ ~~September 30, 2016, pro forma revenue totaled approximately $1,634.5 million and $3,934.6 million, respectively, and pro forma net income totaled approximately $59.0 million and $81.5 million, respectively.~~

The above indicated unaudited pro forma financial results, which represent the results of operations of the companies acquired as if the acquired companies had been consolidated as of January 1, 2016, are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined companies for the periods indicated, or of the results that may be achieved by the combined companies in the future. The unaudited supplemental pro forma financial results have been prepared by adjusting the historical results of MasTec to include the historical results of the acquired businesses described above, and then adjusted (i) to remove acquisition costs; (ii) to increase amortization expense resulting from the acquired intangible assets; (iii) to increase interest expense as a result of the cash consideration paid; (iv) to reduce interest expense from debt repaid upon acquisition; and (iv) to eliminate the effect of intercompany transactions. Additionally, the unaudited supplemental pro forma financial results do not include adjustments to reflect other cost savings or synergies that may have resulted from these acquisitions. Future results may vary significantly due to future events and transactions, as well as other factors, many of which are beyond MasTec’s control.

For the three ~~and nine~~ month periods ended ~~September 30, 2017, acquisition-related results included in~~March 31, 2021 and 2020, the Company’s consolidated results of operations included acquisition-related revenue of approximately ~~$62.2~~$86.8 million and ~~$96.1~~$49.5 million, respectively, and included acquisition-related net income of approximately ~~$3.2~~$1.2 million and ~~$4.7~~acquisition-related net losses of approximately $1.2 million, ~~respectively.~~respectively, based on the Company’s consolidated effective tax rates. These acquisition-related results include amortization of intangible assets and exclude the effects of acquisition costs and interest expense associated with consideration paid for the related acquisitions.

Q2 2021 Acquisitions. In the second quarter of 2021, MasTec completed the acquisition of INTREN, LLC (“INTREN”), a premier specialty utility contractor primarily providing electrical distribution network services under various multi-year master services agreements to the nation’s largest utilities, municipalities and cooperatives. This entity will be included within the Company’s Electrical Transmission segment. MasTec acquired all of INTREN’s equity interests for approximately $420 million in cash plus an Earn-out, which is contingent upon INTREN’s results for the year ended December 31, 2021. The acquisition of INTREN was funded with cash on hand and borrowings under the Company’s senior secured credit facility and is subject to customary purchase price adjustments. MasTec also completed 2 additional immaterial acquisitions, which included all of the equity interests of a telecommunications and utility engineering services company and a heavy industrial general contractor that will be included within our Communications and Clean Energy and Infrastructure segments, respectively. Due to the limited amount of time since these acquisitions, the initial purchase accounting is incomplete. The Company will complete an initial allocation of purchase price to total net assets acquired for these acquisitions in the second quarter of 2021.

Note 4 – Fair Value of Financial Instruments

The Company’s financial instruments include cash and cash equivalents, accounts and notes receivable, cash collateral deposited with insurance carriers, life insurance assets, ~~cost and~~ equity ~~method~~ investments, ~~stock warrants,~~certain other investments, deferred compensation plan assets and liabilities, accounts payable and other current liabilities, acquisition-related contingent consideration, ~~certain intangible assets and liabilities, including off-market contracts,~~mandatorily redeemable non-controlling interests, convertible debentures and debt obligations.

Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value guidance establishes a valuation hierarchy, which requires maximizing the use of observable inputs when measuring fair value. The three levels of inputs that may be used are: (i) Level 1 - quoted market prices in active markets for identical assets or liabilities; (ii) Level 2 - observable market-based inputs or other observable inputs; and (iii) Level 3 - significant unobservable inputs that cannot be corroborated by observable market data, which are generally determined using valuation models incorporating management estimates of market participant assumptions. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Management’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the

Acquisition-Related Contingent Consideration and Other Liabilities

Acquisition-related contingent consideration ~~of inputs specific to the asset or liability.~~

~~Fair values of financial instruments are estimated using public market prices, quotes from financial institutions~~ and other ~~available information. Due to their short-term maturity, the carrying amounts~~liabilities is composed of cash and cash equivalents, accounts receivable, accounts payable and other current liabilities approximate their fair values. Management believes the carrying values of notes and other receivables, cash collateral deposited with insurance carriers, deferred compensation plan assets and liabilities and outstanding balances on its credit facilities approximate their fair values.

~~Assets and Liabilities Measured at Fair Value on a Recurring Basis~~

~~As of September 30, 2017 and December 31, 2016, financial instruments required to be measured at fair value on a recurring basis consisted primarily of acquisition-related contingent consideration,~~earn-outs, which ~~represents~~represent the estimated fair value of future ~~earn-outs~~amounts payable for ~~acquisitions~~businesses, including for mandatorily redeemable non-controlling interests (together, “Earn-outs”), that are contingent upon the acquired business achieving certain levels of ~~businesses (“ASC 805 contingent consideration”). ASC 805 contingent consideration is based on management estimates and entity-specific assumptions and is evaluated on an ongoing basis.~~earnings in the future. As of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, the estimated fair value of the Company’s ~~ASC 805 contingent consideration~~Earn-out liabilities totaled ~~$104.9~~$134.8 million and ~~$45.8~~$135.2 million, respectively, of which ~~$18.9~~$47.9 million and ~~$21.8~~$48.1 million, respectively, was included within other current liabilities. The fair ~~value~~values of the Company’s ~~ASC 805 contingent consideration is~~Earn-out liabilities are estimated using income approaches such as discounted cash flows or option pricing models, ~~and incorporates~~both of which incorporate significant inputs not observable in the ~~market.~~market (Level 3 inputs), including management’s estimates and entity-specific assumptions, and are evaluated on an ongoing basis. Key assumptions include the discount rate, which, as of March 31, 2021, ranged from 12.0% to 20.0%, with a weighted average rate of 13.1% based on the relative fair value of each instrument, and probability-weighted ~~EBITDA projections.~~projections of earnings before interest, taxes, depreciation and amortization (“EBITDA”). Significant changes in any of these assumptions could result in a significantly higher or lower potential ~~earn-out liability.~~Earn-out liabilities. The ultimate payment amounts for the Company’s Earn-out liabilities will be determined based on the actual results achieved by the acquired businesses. As of ~~September 30, 2017,~~March 31, 2021, the range of potential undiscounted ~~earn-out~~Earn-out liabilities was estimated to be between ~~$15~~$56 million and ~~$170~~$174 million; however, there is no maximum payment amount.

~~ASC 805 contingent consideration~~Earn-out activity consists primarily of additions from new business ~~combinations, payments of earn-out liabilities,~~combinations; changes in the expected fair value of future ~~earn-out obligations,~~payment obligations; and for earn-out liabilities denominated in foreign currencies, translation gains or losses. Fair value adjustments are recorded within other income or expense, and foreign currency translation activity is recorded within other comprehensive income or loss, as appropriate. For the three and nine month periods ended September 30, 2017,payments. There were 0 Earn-out additions from new business combinations ~~totaled $64.6 million~~in either of the three month periods ended March 31,

2021 or 2020. For the three month period ended March 31, 2021, there were 0 measurement period adjustments, and ~~$89.6 million, respectively. There were no payments of ASC 805 contingent consideration~~ for the three month period ended ~~September 30, 2017,~~March 31, 2020, measurement period adjustments totaled an increase of approximately $1.1 million and ~~payments~~related to a business in the Company’s Communications segment. Fair value adjustments across multiple segments totaled ~~$18.8~~a net decrease of approximately $0.4 million for the ~~nine~~three month period ended ~~September 30, 2017. For~~March 31, 2021, and totaled a net increase of approximately $1.8 million for the three ~~and nine~~month period ended March 31, 2020. There were 0 Earn-out payments in either of the three month periods ended September 30, 2016, payments totaled $5.3 million and $15.8 million, respectively. Foreign currency translation activity was de minimis for both the three and nine month periods ended September 30, 2017 and September 30, 2016. March 31, 2021 or 2020.

Equity Investments

The ~~Company recognized reductions in the expected fair value~~Company’s equity investments as of future earn-out obligations totaling $3.0 million and $11.6 million for certain acquired businesses in the Communications and Electrical Transmission segments for the three and nine month periods ended September 30, 2017, respectively, and, during the first quarter of 2016, the Company recognized a net reduction in the expected fair value of future earn-out obligations of $2.3 million for certain ofMarch 31, 2021 include: (i) the Company’s ~~western Canadian oil and gas businesses.~~

~~Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis~~

Assets and liabilities recognized or disclosed at fair value on a non-recurring basis, for which remeasurement occurs in the event of an impairment or other measurement event, if applicable, include items such as cost and equity method investments, life insurance assets, long-lived assets, goodwill, other intangible assets and liabilities and debt.

As of both September 30, 2017 and December 31, 2016, the gross carrying amount of the Company’s 4.875% senior notes due 2023 (the “4.875% Senior Notes”) totaled $400 million. As of September 30, 2017 and December 31, 2016, the estimated fair value of the Company’s 4.875% Senior Notes, based on quoted market prices in active markets, a Level 1 input, totaled $407.0 million and $388.0 million, respectively.

~~Cost and Equity Investees.~~ ~~The Company’s cost and equity investees as of September 30, 2017 are primarily composed of: (i) the Company’s~~33% equity interests in Trans-Pecos Pipeline, LLC (“TPP”) and Comanche Trail Pipeline, LLC (“CTP,” and together with TPP, the “Waha JVs”); (ii) ~~the Company’s interests in~~ a ~~pre-acquisition~~15% equity ~~method investment of Pacer Construction Holdings Corporation and its affiliated operating companies (collectively, “Pacer”); (iii) a $15 million cost investment~~interest in Cross Country Infrastructure Services, Inc. (“~~CCI,” previously, Cross Country Pipeline Supply, Inc.~~CCI”); (iii) the Company’s 50% equity interests in each of FM Technology Holdings, LLC, FM USA Holdings, LLC and All Communications Solutions Holdings, LLC, collectively “FM Tech”; (iv) the Company’s equity interests in ~~its~~American Virtual Cloud Technologies, Inc., or “AVCT”; (v) the Company’s interests in certain proportionately consolidated non-controlled contractual joint ventures; ~~(v) the Company’s equity interests in Pensare Acquisition Corp. (“Pensare”);~~ and (vi) certain other ~~cost~~equity investments.

Investment Arrangements. From time to time, the Company may participate in selected investment or strategic arrangements, including equity interests in various business entities and participation in contractual joint ventures. Some of these investment or strategic arrangements may involve the extension of loans or other types of financing, including approximately $3 million of financing receivables as of both March 31, 2021 and December 31, 2020, and $3 million of financing commitments as of December 31, 2020. The Company has determined that certain of its investment arrangements are variable interest entities (“VIEs”). As of March 31, 2021, except for one individually insignificant VIE, the Company does not have the power to direct the primary activities that most significantly impact the economic performance of its VIEs nor is it the primary beneficiary. Accordingly, except for the previously mentioned VIE, the Company’s VIEs are not consolidated.

Equity investments, other than those accounted for as equity method ~~investments. See Note 15 - Related Party Transactions.~~

~~The~~investments or those that are proportionately consolidated, are measured at fair value if their fair values are readily determinable. Equity investments that do not have readily determinable fair values are measured at cost, adjusted for changes from observable market transactions, if any, less impairment (“adjusted cost basis”). As of March 31, 2021 and December 31, 2020, the aggregate carrying value of the Company’s equity investments, including equity investments measured on an adjusted cost basis, totaled approximately $242 million and $220 million, respectively. As of March 31, 2021 and December 31, 2020, equity investments measured on an adjusted cost basis, including the Company’s $15 million investment in CCI, totaled approximately $18 million and $17 million, respectively. There were 0 material changes in the fair values of, or impairments related to, these investments during either of the ~~Company’s cost and equity method investments are not readily observable. The Company is not aware of events~~three month periods ended March 31, 2021 or changes in circumstances that would have a significant adverse effect on the carrying values of its cost and/or equity investments as of September 30, 2017 or December 31, 2016. Cumulative undistributed earnings from equity method investees totaled $10.6 million as of September 30, 2017.2020.

The Waha ~~JVs~~.JVs. The Waha JVs own and operate ~~two pipelines and a header system~~certain pipeline infrastructure that ~~transport~~transports natural gas to the Mexican border for export. These pipelines commenced operations in the first half of 2017. There were no equity or other contributions to these joint ventures for the three month period ended September 30, 2017, and for the nine month period ended September 30, 2017, equity and other contributions totaled $73.3 million. As collateral for its equity commitmentsThe Company’s investments in the Waha JVs ~~the Company has issued letters of credit (the “Equity LC Amount”), of which $19 million and $91 million, respectively, were outstanding~~are accounted for as ~~of September 30, 2017 and December 31, 2016.~~equity method investments. Equity in earnings related to the Company’s proportionate share of income from the Waha JVs, which is included within the Company’s Other segment, totaled approximately ~~$7.4~~$7.7 million and ~~$15.1~~$7.6 million for the three ~~and nine~~ month periods ended ~~September 30, 2017,~~March 31, 2021 and 2020, respectively. ~~Equity in~~Distributions of earnings from the Waha JVs are included within operating cash flows. There were 0 distributions of earnings for the ~~nine~~three month period ended ~~September 30, 2016 was de minimis.~~March 31, 2021, and for the three month period ended March 31, 2020, distributions of earnings totaled $2.6 million. Cumulative undistributed earnings from the Waha JVs, which represents cumulative equity in earnings for the Waha JVs less distributions of earnings, totaled $75.0 million as of March 31, 2021. The Company’s net investment in the Waha JVs, which differs from its proportionate share of the net assets of the Waha JVs due primarily to equity method goodwill associated with capitalized investment costs, totaled approximately $196 million and $175 million as of March 31, 2021 and December 31, 2020, respectively.

The Waha JVs are party to separate non-recourse financing facilities, each of which are secured by pledges of the equity interests in the respective entities, as well as a first lien security interest over virtually all of their assets. The Waha JVs are also party to certain interest rate ~~swaps.~~swaps (the “Waha JV swaps”), which are accounted for as qualifying cash flow hedges. The Company reflects its proportionate share of any unrealized fair market value gains or losses from fluctuations in interest rates associated with these swaps within other comprehensive income or loss, as appropriate. For the three month period ended ~~September 30, 2017,~~March 31, 2021, the Company’s proportionate share of unrecognized unrealized activity on ~~these interest rate~~the Waha JV swaps ~~was a gain~~totaled gains of approximately ~~$1.3~~$17.3 million, or ~~$0.8~~$13.1 million, net of tax, and for the ~~nine~~three month period ~~this activity was a loss~~ended March 31, 2020, totaled losses of approximately ~~$2.1~~$30.3 million, or ~~$1.3~~$23.0 million, net of tax. For the three and nine month periods ended September 30, 2016, the Company’s proportionate share of unrecognized unrealized activity on these interest rate swaps was a loss of approximately $0.6 million and $21.1 million, respectively, or $0.3 million and $12.9 million, net of tax, respectively.

Certain subsidiaries of MasTec have provided pipeline construction services to the Waha JVs. For the three and nine month periods ended September 30, 2017, revenue recognized in connection with work performed for the Waha JVs, including intercompany eliminations, totaled $3.6 million and $255.2 million, respectively, and for the three and nine month periods ended September 30, 2016, totaled $80.9 million and $142.8 million, respectively. As of September 30, 2017 and December 31, 2016, related receivables, including retainage, net of BIEC, totaled $52.2 million and $71.2 million, respectively. As of September 30, 2017 and December 31, 2016, the Company’s net investment in the Waha JVs represented an asset totaling approximately $115 million and $6 million, respectively. The Company’s net investment in the Waha JVs differs from its proportionate share of the net assets of the Waha JVs due to capitalized investment costs as well as the effect of intercompany eliminations.

Other ~~investments~~. In connection with the 2014 acquisition of Pacer, the Company acquired equity interests in two joint ventures. There are no remaining amounts expected to be advanced in connection with these investments, and as of March 2016, all related project work had been completed. In the first quarter of 2016, revenue recognized by Pacer on behalf of these entities totaled $0.6 million. One of these entities was liquidated in 2016, and the second, which is in the final stages of liquidation, is being managed by a receiver to assist with the orderly wind-down of its operations. In the first quarter of 2016, $3.6 million of income was recognized related to changes in expected recoveries from these investments. Investments. The Company ~~received $12.1 million of proceeds from the receiver~~has investments in the first quarter of 2017. The remaining investment, for which the Company now has minimal involvement, is reviewed regularly by corporate management for potential changes in expected recovery estimates, and, during the second quarter of 2017, the Company recorded $5.8 million of expense related to changes in expected recovery amounts from this investment. The aggregate net carrying value of this investment, which represents expected recoveries under the receivership arrangement, totaled $14.8 million and $31.4 million as of September 30, 2017 and December 31, 2016, respectively, which amounts are included within other current assets.

~~During the third quarter of 2017, the Company paid approximately $2.0 million for approximately 4% of the common stock of Pensare and warrants to purchase 2.0 million~~AVCT. These investments include (i) shares of ~~Pensare~~AVCT common stock, which ~~is a special purpose acquisition company focusing on transactions in~~are equity securities, (ii) warrants for the ~~telecommunications industry. The shares~~purchase of AVCT common stock, purchased by MasTec are not transferable or salable until one year after Pensare successfully completes a business combination transaction, with limited exceptions, as specified in the agreement. The warrants purchased by MasTec are exercisable at a purchase price of $11.50 per share after Pensare successfully completes a business combination. Both the warrants and shares expire and/or are effectively forfeitable if Pensare does not successfully complete a business combination by February 1, 2019. The warrants, which are derivative financial instruments, and ~~the~~(iii) debentures that are convertible into shares of AVCT common stock, which are available-for-sale securities. As of both March 31, 2021 and December 31, 2020, the Company’s ownership interest in AVCT’s common stock, represented by the AVCT shares, totaled approximately 9%, and its aggregate ownership interest, assuming the exercise and conversion of all legally exercisable warrants and convertible debt into AVCT common stock, totaled approximately 22% and 21% as of March 31, 2021 and December 31, 2020, respectively. José R. Mas, MasTec’s Chief Executive Officer, was a ~~cost method investment,~~director of AVCT through the end of March 2020. The Company paid an aggregate of approximately $5 million for its investments in AVCT, all of which are included within other long-term assets in the Company’s consolidated financial ~~statements as~~statements. The issued shares and those underlying the derivative instruments are salable at various times through 2025 subject to various contractual and securities law restrictions. The Company does not have the ability to exert significant influence over the operating and financial policies of ~~September 30, 2017. The~~AVCT.

As of both March 31, 2021 and December 31, 2020, the aggregate fair value of the ~~warrants,~~Company’s investments in AVCT approximated $17 million. For the three month period ended March 31, 2021, the Company recorded unrealized fair value measurement losses, net, on the AVCT securities within other expense totaling approximately $1.0 million, primarily related to the AVCT shares, for which the fair value was determined based on the market price of identical securities, adjusted for the restrictions on sale, which is a Level 3 input. Unrealized fair value measurement gains on the AVCT convertible debentures as determined based on Monte Carlo simulations, a Level 3 ~~inputs, approximated their cost basis as~~input, which were recognized within other comprehensive income, totaled approximately $1.0 million, or $0.8 million, net of ~~September 30, 2017. The~~tax, respectively, for the three month period ended March 31, 2021. There were no material changes in the fair value of the ~~shares is not readily determinable due~~Company’s investment in AVCT for the three month period ended March 31, 2020.

During the first quarter of 2021, MasTec committed to fund up to $2.5 million for a 75% equity interest in Confluence Networks, LLC (“Confluence”), an undersea fiber-optic communications systems developer and VIE, of which $0.4 million was funded during the ~~nature~~three month period ended March 31, 2021. As of March 31, 2021, MasTec had less than a majority of the ~~restrictions. José R. Mas, MasTec’s Chief Executive Officer, is~~members on the board and determined that it did not have a ~~director~~controlling financial interest. The Company has the ability to exert significant influence over the VIE, and, as a result, the Company’s investment in Confluence was accounted for as an equity method investment as of ~~Pensare.~~

March 31, 2021.

The Company has equity interests in certain telecommunications entities that are accounted for as equity method investments, for which the Company had an aggregate investment of $21 million and $19 million, respectively, including $17 million and $16 million, respectively, for FM Tech, as of March 31, 2021 and December 31, 2020. The initial investment in FM Tech provided for an additional $9 million of purchase price upon resolution of certain contingencies, of which $2 million was paid in the first quarter of 2021. As of March 31, 2021, approximately $3 million of contingent payment liabilities were included within other current liabilities. For the three month period ended March 31, 2021, the Company made equity contributions of approximately $2 million related to these entities, and for the three month period ended March 31, 2020, the Company made 0 equity contributions. Certain of these entities provide services to MasTec. For the three month periods ended March 31, 2021 and 2020, expense recognized in connection with services provided by these entities totaled $1.8 million and $2.7 million, respectively, and related amounts payable totaled $0.3 million and $0.2 million as of March 31, 2021 and December 31, 2020, respectively. In addition, the Company has an employee leasing arrangement with one of these entities. Charges to this entity were de minimis for the three month period ended March 31, 2021, and related amounts receivable totaled $0.5 million and $0.4 million as of March 31, 2021 and December 31, 2020, respectively. Amounts advanced to these entities totaled $0.2 million for the three month period ended March 31, 2021, which amount was outstanding as of March 31, 2021.

Senior Notes

As of both March 31, 2021 and December 31, 2020, the gross carrying amount of the Company’s 4.50% senior notes due August 15, 2028 (the “4.50% Senior Notes”) totaled $600 million, and their estimated fair value, as determined based on an exit price approach using Level 1 inputs, totaled $618.0 million and $625.5 million, respectively.

Note 5 -– Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities

The following table provides details of accounts receivable, net of allowance, and contract assets (together, “accounts receivable, net”) as of the dates indicated (in millions):


	March 31, 2021		December 31, 2020
Contract billings	$	889.5	$	805.0
Less allowance	(12.8)		(20.5)
Accounts receivable, net of allowance	$	876.7	$	784.5

Retainage	314.0		287.7
Unbilled receivables	644.1		682.0
Contract assets	$	958.1	$	969.7

September 30,
2017 December 31,
2016
Contract billings $ 626.7
$ 564.2
Retainage 287.6
268.6
Costs and earnings in excess of billings 629.5
331.6
Accounts receivable, gross $ 1,543.8
$ 1,164.4
Less allowance for doubtful accounts (9.0 ) (8.4 )
Accounts receivable, net $ 1,534.8
$ 1,156.0

Contract billings represent the amount of performance obligations that have been billed but have not yet been collected. Contract assets consist of unbilled receivables and retainage. Unbilled receivables represent the estimated value of unbilled work for projects with performance obligations recognized over time. Retainage ~~which~~represents a portion of the contract amount that has been billed, but for which the contract allows the customer to retain a portion of the billed amount until final contract settlement (generally, from 5% to 10% of contract billings). For the three month period ended March 31, 2021, provisions for credit losses totaled a recovery of $7.7 million, resulting from successful collection efforts for previously reserved amounts. For the three month period ended March 31, 2020, provisions for credit losses totaled $1.6 million. Impairment losses on contract assets were not material in either period.

Contract liabilities consist primarily of deferred revenue. Under certain contracts, the Company may be entitled to invoice the customer and receive payments in advance of performing the related contract work. In those instances, the Company recognizes a liability for advance billings in excess of revenue recognized, which is ~~not due until completion~~referred to as deferred revenue. Contract liabilities also include the amount of ~~performance~~any accrued project losses. Total contract liabilities, including accrued project losses, totaled approximately $259.5 million and acceptance by customers, is expected to be collected within one year. Receivables expected to be collected beyond one year are recorded within other long-term assets. Provisions for doubtful accounts for each$228.4 million as of March 31, 2021 and December 31, 2020, respectively, of which deferred revenue comprised approximately $240.8 million and $203.0 million, respectively. For the three month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016 totaled $0.4~~2020, the Company recognized revenue of approximately $146.8 million and ~~for~~$105.6 million, respectively, related to amounts that were included in deferred revenue as of December 31, 2020 and 2019, respectively, resulting primarily from the ~~nine month periods ended September 30, 2017 and 2016, totaled $1.1 million and $2.0 million, respectively.~~

advancement of physical progress on the related projects during the related periods.

The Company is party to non-recourse financing arrangements in the ordinary course of business, under which certain receivables are ~~purchased by~~settled with the customer’s bank in return for a nominal fee. ~~These~~Discount charges related to these arrangements, ~~under~~ which ~~amounts can vary based on levels of activity and changes in customer payment terms, improve the collection cycle time of the related receivables. The discount charge, which is~~are included within interest expense, net, totaled approximately ~~$2.1~~$0.8 million and ~~$0.8~~$1.8 million ~~respectively,~~ for the three month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016, and totaled approximately $4.7 million and $1.7 million, respectively, for the nine month periods ended September 30, 2017 and 2016.~~2020, respectively.

Note 6 -– Property and Equipment, Net

The following table provides details of property and equipment, net, including property and equipment held under ~~capital~~finance leases as of the dates indicated (in millions):


	March 31, 2021		December 31, 2020
Land	$	8.4	$	6.0
Buildings and leasehold improvements	43.7		40.5
Machinery and equipment	1,972.1		1,875.5
Office furniture and equipment	228.3		221.6
Construction in progress	23.0		26.1
Total property and equipment	$	2,275.5	$	2,169.7
Less accumulated depreciation and amortization	(1,251.0)		(1,187.4)
Property and equipment, net	$	1,024.5	$	982.3

September 30,
2017 December 31,
2016
Land $ 4.6
$ 4.6
Buildings and leasehold improvements 25.7
24.2
Machinery and equipment 1,237.3
997.8
Office furniture and equipment 149.6
146.1
Construction in progress 8.9
9.5
Total property and equipment $ 1,426.1
$ 1,182.2
Less accumulated depreciation and amortization (734.7 ) (633.1 )
Property and equipment, net $ 691.4
$ 549.1

The gross amount of capitalized internal-use software, which is included within office furniture and equipment, totaled ~~$108.7~~$160.2 million and ~~$107.8~~$154.1 million as of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, respectively. Capitalized internal-use software, net of accumulated amortization, totaled ~~$24.8~~$36.7 million and ~~$30.9~~$34.3 million as of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, respectively. ~~Depreciation and amortization expense associated with property and equipment for~~The effects of accrued capital expenditures are excluded from the ~~three month periods ended~~ ~~September 30, 2017~~ ~~and~~ ~~2016~~ ~~totaled~~ ~~$44.1 million~~ ~~and~~ ~~$37.4 million, respectively, and totaled $123.4 million and $106.5 million for the nine month periods ended September 30, 2017 and 2016, respectively.~~

Company’s consolidated statements of cash flows given their non-cash nature.

Note 7 -– Debt

The following table provides details of the carrying values of debt as of the dates indicated (in millions):


Description		Maturity Date	September 30, 2017			December 31, 2016			Description	Maturity Date	March 31, 2021		December 31, 2020
Senior secured credit facility:		February 22, 2022							Senior secured credit facility:	September 19, 2024
Revolving loans	Revolving loans		$	300.6		$	279.9		Revolving loans		$	45.0	$	32.7
Term loan	Term loan		400.0			237.5			Term loan		395.0		397.5
4.875% Senior Notes		March 15, 2023	400.0			400.0
Capital lease obligations, weighted average interest rate of 3.5%		In installments through September 1, 2022	179.9			98.6
Notes payable and other debt obligations		Varies	12.1			19.8
Total long-term debt obligations			$	1,292.6		$	1,035.8
4.50% Senior Notes									4.50% Senior Notes	August 15, 2028	600.0		600.0
Finance lease and other obligations									Finance lease and other obligations		302.9		288.5
Total debt obligations									Total debt obligations		$	1,342.9	$	1,318.7
Less unamortized deferred financing costs	Less unamortized deferred financing costs		(13.8		)	(9.8		)	Less unamortized deferred financing costs		(15.2)		(16.0)
Total debt, net of deferred financing costs	Total debt, net of deferred financing costs		$	1,278.8		$	1,026.0		Total debt, net of deferred financing costs		$	1,327.7	$	1,302.7
Current portion of long-term debt	Current portion of long-term debt		86.5			64.6			Current portion of long-term debt		157.3		145.1
Long-term debt	Long-term debt		$	1,192.3		$	961.4		Long-term debt		$	1,170.4	$	1,157.6

Senior Secured Credit Facility

The ~~Company has a~~Company’s senior secured credit facility (the “Credit Facility”), which was amended and restated on February 22, 2017. The Company refers to its amended and restated credit facility as the “2017 Credit Facility,” and to its previous credit facility as the “2016 Credit Facility.” The 2017 Credit Facility increased the Company’s has aggregate borrowing commitments ~~from~~totaling approximately ~~$1.2 billion to $1.5~~$1.75 billion, which amount is composed of ~~$1.1~~$1.35 billion of revolving commitments and a term loan in the aggregate principal amount of $400 million. The amended and restated credit facility also extended the Credit Facility’s maturity date to February 22, 2022. As of September 30, 2017, term loans in the aggregate principal amount of $400 million were drawn under the 2017 Credit Facility. The term loan is subject to amortization in quarterly principal installments ~~that commence~~of $2.5 million, which commenced in December ~~2017, which as of September 30, 2017, amounted~~2020. This amount will increase to ~~$3.1~~$5.0 million ~~which amount is~~commencing in December 2021. Quarterly principal installments on the term loan are subject to adjustment, ~~for additional term loans and,~~ if applicable, for certain prepayments. ~~As of December 31, 2016, term loans in the aggregate principal amount of $238 million were outstanding.~~

The 2017 Credit Facility also increased the amount the Company can borrow either in Canadian dollars and/or Mexican pesos up to an aggregate equivalent amount of $300 million. The maximum amount available for letters of credit under the 2017 Credit Facility is $650 million, of which up to $200 million can be denominated in either Canadian dollars and/or Mexican pesos. The Credit Facility also provides for swing line loans of up to $75 million, and, subject to certain conditions, the Company has the option to increase revolving commitments and/or establish additional term loan tranches up to an aggregate amount of $250 million. Subject to the terms and conditions described in the Credit Facility, these additional term loan tranches may rank equal or junior in respect of right of payment and/or collateral to the Credit Facility, and may have terms and pricing that differ from the 2017 Credit Facility. Borrowings under the Credit Facility are used for working capital requirements, capital expenditures and other corporate purposes, including investments in equity or other investees, potential acquisitions or other strategic arrangements, and the repurchase or prepayment of indebtedness.

Outstanding revolving loans and the term loan under the Credit Facility bear interest, at the Company’s option, at a rate equal to either (a) a Eurocurrency Rate, as defined in the 2017 Credit Facility, plus a margin of 1.25% to 2.00% (under the 2016 Credit Facility, the margin was from 1.00% to 2.00%), or (b) a Base Rate, as defined in the 2017 Credit Facility, plus a margin of 0.25% to 1.00% (under the 2016 Credit Facility, the margin was from 0.00% to 1.00%). The Base Rate equals the highest of (i) the Federal Funds Rate, as defined in the Credit Facility, plus 0.50%, (ii) Bank of America’s prime rate, and (iii) the Eurocurrency Rate plus 1.00%. Financial standby letters of credit and commercial letters of credit issued under the 2017 Credit Facility are subject to a letter of credit fee of 1.25% to 2.00% (under the 2016 Credit Facility, the letter of credit fee was from 1.00% to 2.00%), and performance standby letters of credit are subject to a letter of credit fee of 0.50% to 1.00% under the Credit Facility. The Company must also pay a commitment fee to the lenders of 0.20% to 0.40% on any unused availability under the Credit Facility. In each of the foregoing cases, the applicable margin or fee is based on the Company’s Consolidated Leverage Ratio, as defined in the Credit Facility, as of the then most recent fiscal quarter.

As of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, outstanding revolving loans, which included ~~$171~~$45 million and ~~$119~~$33 million, respectively, of borrowings denominated in foreign currencies, accrued interest at weighted average rates of approximately ~~2.96%~~1.77% and ~~3.71%~~1.87% per annum, respectively. The term loan accrued interest at ~~a rate~~rates of ~~2.86%~~1.36% and ~~2.77%~~1.40% as of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, respectively. Letters of credit of approximately ~~$189.1~~$127.0 million and ~~$314.3~~$133.6 million were issued as of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, respectively. As of ~~September 30, 2017~~both March 31, 2021 and December 31, ~~2016, letters~~2020, letter of credit fees accrued at ~~0.750% and 1.00%~~0.375% per annum ~~respectively,~~ for performance standby letters of credit and at ~~1.625% and 2.00%~~1.25% per annum ~~respectively,~~ for financial standby letters of credit. Outstanding letters of credit mature at various dates and most have automatic renewal provisions, subject to prior notice of cancellation. As of ~~September 30, 2017~~both March 31, 2021 and December 31, ~~2016,~~2020, availability for revolving loans totaled ~~$610.3 million and $405.9 million, respectively,~~$1.2 billion, or up to ~~$460.9~~$523.0 million and ~~$335.7~~$516.4 million, respectively, for new letters of credit. Revolving loan borrowing capacity included ~~$129.4~~$255.0 million and ~~$80.9~~$267.3 million of availability in either Canadian dollars or Mexican pesos as of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, respectively. The unused facility fee as of ~~September 30, 2017~~both March 31, 2021 and December 31, ~~2016~~2020 accrued at ~~a rate of 0.30% and 0.40%, respectively.~~0.20% per annum.

The Credit Facility is guaranteed by certain subsidiaries of the Company (the “Guarantor Subsidiaries”) and ~~the~~ obligations under the Credit Facility are secured by substantially all of the Company’s and the Guarantor Subsidiaries’ respective assets, subject to certain exceptions. The Credit Facility requires that the Company maintain a Maximum Consolidated Leverage Ratio, as defined in the Credit Facility, of 3.50 (subject to the Acquisition Adjustment described below). The Credit Facility also requires that the Company maintain a Minimum Consolidated Interest Coverage Ratio, as defined in the Credit Facility, of 3.00. The Credit Facility provides that, for purposes of calculating the Consolidated Leverage Ratio, certain cash charges may be added back to the calculation of Consolidated EBITDA, as defined in the Credit Facility, and funded indebtedness excludes undrawn standby performance letters of credit. Additionally, notwithstanding the terms discussed above, subject to certain conditions, if a permitted acquisition or series of permitted acquisitions having consideration exceeding $50 million occurs during a fiscal quarter, the Consolidated Leverage Ratio may be temporarily increased to up to 3.75 during such fiscal quarter and the subsequent two fiscal quarters. Such right may be exercised no more than two times during the term of the Credit Facility. Subject to customary exceptions, the Credit Facility limits the borrowers’ and the Guarantor Subsidiaries’ ability to engage in certain activities, including acquisitions, mergers and consolidations, debt incurrence, investments, capital expenditures, asset sales, debt prepayments, lien incurrence and the making of distributions or repurchases of capital stock. However, distributions payable solely in capital stock are permitted. The Credit Facility provides for customary events of default and carries cross-default provisions with the Company’s other significant debt instruments, including the Company’s indemnity agreement with its surety provider, as well as customary remedies, including the acceleration of repayment of outstanding amounts and other remedies with respect to the collateral securing the Credit Facility obligations.

Other Credit Facilities. The Company has other credit facilities that support the working capital requirements of its foreign ~~operations. Borrowings under these~~operations and certain letter of credit facilities, which have varying dates of maturity and are generally renewed on an annual basis, are denominated in Canadian dollars. As September 30, 2017 and December 31, 2016, maximum borrowing capacity totaled Canadian $20.0 million and $40.0 million, respectively, or approximately $16.0 million and $29.8 million, respectively. As of September 30, 2017 and December 31, 2016,issuances. There were 0 outstanding borrowings totaled approximately $5.4 million and $13.4 million, respectively, and accrued interest at a weighted average rate of approximately 4.0% and 3.6%, respectively. Outstanding borrowings that are not renewed are repaid with borrowings under the Company’s ~~senior secured credit facility. Accordingly, the carrying amounts of the Company’s borrowings under its~~ other credit facilities as of either March 31, 2021 or December 31, 2020. Additionally, the Company has a separate credit facility, under which ~~are included within notes payable~~it may issue up to $50.0 million of performance standby letters of credit. As of March 31, 2021 and ~~other debt obligations in the table above, are classified within long-term debt in the Company’s consolidated balance sheets.~~December 31, 2020, letters of credit issued under this facility totaled $26.2 million and $18.2 million,

respectively, and accrued fees at 0.40% and 0.50% per annum, respectively. The Company’s other credit facilities are subject to customary provisions and covenants.

Debt Guarantees and Covenants

The ~~4.875%~~4.50% Senior Notes are senior unsecured unsubordinated obligations and rank equal in right of payment with existing and future unsubordinated debt, and rank senior in right of payment to existing and future subordinated debt and are fully and unconditionally guaranteed on ana senior unsecured, ~~unsubordinated,~~ joint and several basis by ~~certain of~~ the Company’s ~~existing and future 100%-owned direct and indirect~~wholly-owned domestic restricted subsidiaries that ~~are each guarantors of the Company’s Credit Facility or other outstanding indebtedness. See Note 16 - Supplemental Guarantor Condensed Unaudited Consolidating Financial Information.~~

guarantee its existing credit facilities, subject to certain exceptions. MasTec was in compliance with the provisions and covenants of its outstanding debt instruments as of ~~September 30, 2017~~both March 31, 2021 and December 31, ~~2016.~~2020.

Additional Information

As of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, accrued interest payable, which is recorded within other accrued expenses in the consolidated balance sheets, totaled ~~$4.1~~$4.8 million and ~~$8.5~~$12.4 million, respectively. ~~Additionally, in connection with the 2017 Credit Facility amendment, the Company paid approximately $6 million in financing costs for the nine month period ended September 30, 2017.~~ For additional information pertaining to the Company’s debt instruments, ~~including its 4.875% Senior Notes,~~ see Note 7 - Debt in the Company’s ~~2016~~2020 Form 10-K.

Note 8 -– Lease Obligations

~~Capital Leases~~

MasTec enters into agreements that provide lease financing for machinery and equipment. The gross amount of assets held under capital leases as of September 30, 2017 and December 31, 2016, which are included within property and equipment, net, totaled $404.1 million and $294.9 million, respectively. Assets held under capital leases, net of accumulated depreciation, totaled $269.6 million and $177.5 million as of September 30, 2017 and December 31, 2016, respectively.

~~Operating Leases~~

In the ordinary course of business, the Company enters into ~~non-cancelable operating leases~~agreements that provide financing for ~~certain~~machinery and equipment and for other of its facility, vehicle and equipment needs, including related party leases. ~~See Note 15 - Related Party Transactions. Rent~~As of March 31, 2021, the Company’s leases have remaining lease terms of up to eight years. Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for one to five years for both equipment and ~~related~~facility leases. Certain lease agreements may also contain options to purchase the leased property and/or options to terminate the lease. In addition, lease agreements may include periodic adjustments to payment amounts for inflation or other variables, or may require payments for taxes, insurance, maintenance or other expenses, which are generally referred to as non-lease components. The Company’s lease agreements do not contain significant residual value guarantees or material restrictive covenants.

Finance Leases

The gross amount of assets held under finance leases as of March 31, 2021 and December 31, 2020 totaled $591.3 million and $563.0 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $439.1 million and $418.7 million as of March 31, 2021 and December 31, 2020, respectively. Depreciation expense associated with finance leases totaled $19.0 million and $15.8 million for the three month periods ended March 31, 2021 and 2020, respectively.

Operating Leases

Operating lease additions for the three month periods ended March 31, 2021 and 2020 totaled $5.5 million and $5.8 million, respectively. For the three month periods ended March 31, 2021 and 2020, rent expense for ~~operating~~ leases that have ~~non-cancelable~~ terms in excess of one year totaled approximately ~~$25.4~~$27.4 million and ~~$25.9~~$35.3 million, ~~for the three month periods ended September 30, 2017 and 2016,~~ respectively, ~~and totaled $77.6~~of which $2.2 million and ~~$74.8~~$2.9 million, ~~for the nine month periods ended September 30, 2017 and 2016, respectively.~~respectively, represented variable lease costs. The Company also incurred rent ~~and related~~ expense for ~~facilities, vehicles and equipment having original~~leases with terms of one year or less totaling approximately ~~$159.4~~$110.1 million and ~~$96.7~~$77.5 million for the three month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016, respectively,~~2020, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows.

Additional Lease Information

Future minimum lease commitments as of March 31, 2021 were as follows (in millions):


	Finance Leases		Operating Leases
2021, remaining nine months	$	115.4	$	63.1
2022	115.3		51.5
2023	61.7		27.3
2024	22.5		17.3
2025	2.1		10.8
Thereafter	0		19.8
Total minimum lease payments	$	317.0	$	189.8
Less amounts representing interest	(14.2)		(13.6)
Total lease obligations, net of interest	$	302.8	$	176.2
Less current portion	142.2		69.2
Long-term portion of lease obligations, net of interest	$	160.6	$	107.0

As of March 31, 2021, finance leases had a weighted average remaining lease term of 2.5 years and ~~totaling $347.8 million~~a weighted average discount rate of 3.7%. Non-cancelable operating leases had a weighted average remaining lease term of 3.9 years and ~~$213.9 million for the nine month periods ended September 30, 2017 and 2016, respectively.~~a weighted average discount rate of 3.5% as of March 31, 2021.

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, 2017, including employee stock purchase plans,~~March 31, 2021, there were approximately ~~4.9 million~~

2,519,000 shares available for future grant. InNon-cash stock-based compensation expense under all plans totaled $5.5 million and $4.0 million for the three month periods ended March ~~2017,~~31, 2021 and 2020,

respectively. Income tax benefits associated with stock-based compensation arrangements totaled $1.1 million and $0.9 million for the ~~Company’s board~~three month periods ended March 31, 2021 and 2020, respectively, including net tax benefits related to the vesting of ~~directors adopted the Amended~~share-based payment awards totaling $0.1 million and ~~Restated 2013 Incentive Compensation Plan (the “Amended 2013 ICP”), which was effective as of January 1, 2017 and changed the amount of~~net tax the Company can withhold for employee tax withholdings on share-based awards, as provided under ASU 2016-09. The Company adopted ASU 2016-09 as of January 1, 2017, as discussed in Note 1 - Business, Basis of Presentation and Significant Accounting Policies.deficiencies totaling $0.1 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. ~~Total~~As of March 31, 2021, total unearned compensation related to restricted shares ~~as ofSeptember 30, 2017~~was approximately ~~$15.8~~$45.7 million,, which is expected to be recognized over a weighted average period of approximately ~~1.1~~2.2 years. T~~he intrinsic~~The fair value of restricted shares that vested, which is based on the market price on the date of vesting, totaled ~~$0.1~~$10.9 million and $5.6 million for ~~both~~ the three month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016,~~2020, respectively.


Activity, restricted shares: (a)	Restricted Shares	Per Share Weighted Average Grant Date Fair Value
Non-vested restricted shares, as of December 31, 2020	1,845,341	$	34.90
Granted	146,681	92.29
Vested	(110,662)	51.44
Canceled/forfeited	(8,400)	29.80
Non-vested restricted shares, as of March 31, 2021	1,872,960	$	38.44

(a) Includes 2,500 and ~~totaled $11.9 million~~2,300 restricted stock units as of March 31, 2021 and ~~$1.5 million for the nine month periods ended September 30, 2017 and 2016,~~December 31, 2020, respectively.

Activity, restricted shares: ^(a)
Restricted
Shares Per Share Weighted Average Grant Date Fair Value
Non-vested restricted shares, as of December 31, 2016 1,970,586
$ 21.61
Granted 193,348
39.47
Vested (304,211 ) 40.72
Canceled/forfeited (30,041 ) 20.24
Non-vested restricted shares, as of September 30, 2017 1,829,682
$ 20.34


~~(a)~~	~~Includes 39,050 and 43,300 restricted stock units as of September 30, 2017~~ ~~and~~ ~~December 31, 2016, respectively.~~

~~Stock Options~~

The Company previously granted options to purchase its common stock to employees and members of the Board of Directors and affiliates under various stock option plans. During 2016, all stock options that were outstanding under previous stock option grants were exercised. The intrinsic value of options exercised, which is based on the difference between the exercise price and the market share price of the Company’s common stock on the date of exercise, totaled $0.5 million and $1.8 million for the three and nine month periods ended September 30, 2016, respectively. Net of shares withheld in cashless option exercises, there were no proceeds from option exercises for the three month period ended September 30, 2016, and for the nine month period ended September 30, 2016, proceeds totaled $1.9 million.

Employee Stock Purchase Plans

The Company has certain employee stock purchase plans (collectively, “ESPPs”), under which shares of the ~~Company's~~Company’s common stock are available for purchase by eligible ~~employees. The following table provides details pertaining to~~participants. Effective January 1, 2021, the Company’s ESPPs were amended (the “Amended ESPPs”), eliminating the look-back option and changing the offering period from three months to two weeks. Under the Amended ESPPs, eligible participants are permitted to purchase MasTec, Inc. common stock at 85% of the fair market value of the shares on the date of purchase, which occurs on the last trading day of each two week offering period. Previously, these plans allowed participants to purchase MasTec, Inc. common stock at 85% of the fair market value of the shares at the lower of (i) the date of commencement of the offering period or (ii) the last day of the offering period, as defined in the plan documents. Prior to January 1, 2021, the fair value of purchases under the ESPPs was estimated using the Black-Scholes option-pricing valuation model. The Company may issue common shares to plan participants or reacquire common shares on the open market or in privately negotiated transactions, at the Company’s discretion. For the three month period ended March 31, 2021, 18,843 shares were purchased by employees for $1.4 million pursuant to the Amended ESPPs, which shares were reacquired by the Company on the open market. For the three month period ended March 31, 2020, 53,399 shares were purchased by employees for $1.5 million, which shares were newly issued by the Company. Compensation expense associated with the Company’s ESPPs totaled approximately $0.3 million and $0.4 million for the three month periods ~~indicated:~~ended March 31, 2021 and 2020, respectively.

For the Nine Months Ended September 30
2017 2016
Cash proceeds (in millions)
$ 2.4
$ 2.0
Common shares issued 68,789
115,556
Weighted average price per share $ 34.72
$ 16.88
Weighted average per share grant date fair value $ 9.00
$ 4.58

~~Non-CashStock-Based Compensation Expense~~

~~Details of non-cash stock-based compensation expense and related tax effects for the periods indicated were as follows (in millions):~~

For the Three Months Ended September 30 For the Nine Months Ended September 30
2017 2016 2017 2016
Non-cash stock-based compensation expense $ 3.4
$ 3.9
$ 10.5
$ 11.3
Income Tax Effects:
Income tax effect of non-cash stock-based compensation $ 1.3
$ 1.7
$ 3.8
$ 5.6
Excess tax benefit from non-cash stock-based compensation ^(a)
$ 0.0
$ 0.3
$ 0.1
$ 1.4

~~(a)~~

~~Excess tax benefits represent cash flows from tax deductions in excess of the tax effect of compensation expense associated with share-based payment arrangements. For the nine~~month period ended September 30, 2017, the Company incurred a net tax deficiency of $0.1 million related to the vesting of share-based payment awards and excess tax benefits were de minimis. As discussed in Note 1 - Business, Basis of Presentation and Significant Accounting Policies, the Company adopted

ASU 2016-09 effective January 1, 2017 on a prospective basis. ASU 2016-09 changed the required presentation of excess tax benefits in the consolidated statement of cash flows from financing activities to operating activities. Excess tax benefits for the comparative prior year period are classified as cash flows from financing activities.

Note 10 – Other Retirement Plans

Multiemployer Plans. Certain of MasTec’s subsidiaries ~~including certain subsidiaries in Canada,~~ contribute amounts to multiemployer pension and other multiemployer benefit plans and trusts ~~which are recorded as a component of employee wages and salaries within costs of revenue, excluding depreciation and amortization.~~(“MEPPs”). Contributions are generally based on fixed amounts per hour per employee for employees covered under these plans. Multiemployer plan contribution rates are determined annually and assessed on a “pay-as-you-go” basis based on union employee payrolls. Union payrolls cannot be determined for future periods because the number of union employees employed at a given time, and the plans in which they ~~may~~ participate, vary depending upon the location and number of ongoing projects ~~at a given time~~ and the need for union resources in connection with those projects. Total contributions to multiemployer plans and the related number of employees covered by these plans ~~including with respect to the Company’s Canadian operations,~~ for the periods indicated were as follows:

Multiemployer Plans
Covered Employees
Contributions (in millions)
Low High Pension Other Multiemployer Total
For the Three Months Ended September 30:
2017 3,669
7,057
$ 36.7
$ 2.7
$ 39.4
2016 4,170
4,910
$ 26.4
$ 2.9
$ 29.3
For the Nine Months Ended September 30:
2017 550
7,057
$ 68.1
$ 8.0
$ 76.1
2016 1,112
4,910
$ 43.4
$ 7.6
$ 51.0


	Multiemployer Plans
	Covered Employees		Contributions (in millions)
	Low	High	Pension		Other Multiemployer		Total
For the Three Months Ended March 31:
2021	2,412	2,532	$	22.5	$	2.2	$	24.7
2020	1,119	1,424	$	5.4	$	1.7	$	7.1

The fluctuations in the ~~average~~ number of employees covered under multiemployer plans and related contributions in the table above ~~are~~related primarily ~~related~~ to ~~higher levels~~timing of activity for the Company’s union resource-based ~~project activity~~projects, the majority of which are within ~~the Company’s~~its oil and gas operations.

Note 11 – Equity

Share Activity

The Company’s share repurchase programs provide for the repurchase of shares of MasTec common stock from time to time in open

market transactions or in privately negotiated transactions in accordance with applicable securities laws. There were 0 share repurchases under the Company’s share repurchase programs for the three month period ended March 31, 2021. For the three month period ended March 31, 2020, the Company repurchased 3.6 million shares of its common stock for an aggregate purchase price totaling approximately $119.4 million, of which 0.6 million shares were repurchased for $28.8 million under a $150 million share repurchase program that was completed in the first quarter of 2020, and 3.0 million shares of which were repurchased for $90.6 million under the Company’s December 2018 $100 million share repurchase program. As of March 31, 2021, $158.6 million was available for future share repurchases under all of the Company’s open share repurchase programs, which included $8.6 million under the Company’s December 2018 share repurchase program, and the full amount of the Company’s March 2020 $150 million share repurchase program.

Accumulated Other Comprehensive Loss

~~Accumulated other comprehensive loss is composed of unrealized~~Unrealized foreign currency translation ~~gains and losses, which relate primarily to fluctuations in foreign currency exchange rates of~~activity, net, for the ~~Company’s foreign subsidiaries with a functional currency other than the U.S. dollar, and unrealized gains and losses from certain investment activities. For both the~~ three ~~and nine~~ month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016, unrealized foreign currency activity related primarily~~2020 relates to the Company’s ~~Canadian~~ operations in Canada and Mexico. For the three month period ended March 31, 2021, unrealized investment activity ~~related to~~includes unrealized gains on both the interest rate swaps associated with the Waha ~~JVs.~~

~~Share Activity~~

~~No shares of~~JVs and on the Company’s ~~common stock have been repurchased under~~investment in AVCT convertible debentures. For the ~~Company’s 2016 share repurchase program.~~three month period ended March 31, 2020, unrealized losses on investment activity relates to the Waha JV swaps. See Note 4 - Fair Value of Financial Instruments for additional information pertaining to the Waha JV swaps and AVCT convertible debentures.

Note 12 -– Income Taxes

In determining the quarterly provision for income taxes, management uses an estimated annual effective tax rate based on forecasted annual pre-tax income, permanent tax differences, statutory tax rates and tax planning opportunities in the various jurisdictions in which the Company operates. The effect of significant discrete items is separately recognized in the quarter(s) in which they occur. For the three month ~~period~~periods ended ~~September 30, 2017,~~March 31, 2021 and 2020, the Company recognized certain tax credits based upon the results of a study that is currently underway, which amount was determined based on management’s estimates and currently available information. Further adjustments to the amount recognized may occur as the results of the study are finalized, which is expected to occur in the fourth quarter of 2017.

As discussed in Note 1 - Business, Basis of Presentation and Significant Accounting Policies, effective January 1, 2017, the Company adopted ASU 2016-09, which changed the recognition requirements for excess tax benefits (“windfalls”) or tax deficiencies (“shortfalls”) from share-based payment awards. ASU 2016-09 requires windfalls or shortfalls to be recognized within income tax expense in the interim periods in which they occur, rather than as additional paid-in capital. Given that windfalls or shortfalls are recognized in income tax expense in the periods in which they occur, they are not included when estimating annualCompany’s consolidated effective tax ~~rates.~~rates were 30.7% and 1.2%, respectively. The ~~tax effect related to the vesting of share-based payment awards did not have a significant effect on the~~ Company’s ~~consolidated~~ effective tax rate for the three month period ended March 31, 2021 included the effect of $2.3 million related to non-deductible share-based compensation, and ~~nine~~for the three month ~~periods~~period ended ~~September 30, 2017.~~

AsMarch 31, 2020, benefited from the release of ~~September 30, 2017, the Company had $274.5~~approximately $9.6 million of ~~long-term deferred tax liabilities. As of December 31, 2016, current~~certain valuation allowances on Canadian deferred tax assets net, totaled $11.8 million and long-term deferred tax liabilities, net, totaled $178.4 million. In addition, as of September 30, 2017 and December 31, 2016, accrued income and other taxes payable, which are included within other accrued expenses, totaled $19.8 million and $40.3 million, respectively. The Company adopted ~~Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes~~ ~~(“ASU 2015-17”), which changed the classification requirements for deferred tax assets and liabilities, effective January 1, 2017. ASU 2015-17 requires long-term classification of all deferred~~that were no longer necessary.

tax assets and liabilities, rather than separately classifying deferred tax assets and liabilities based on their net current and non-current amounts, as was required under the previous guidance. The Company adopted ASU 2015-17 on a prospective basis, therefore prior periods were not adjusted to conform to the current period presentation. The adoption of ASU 2015-17 did not have had a material effect on the consolidated financial statements.

Note 13 -– Segments and Related Information

Segment Discussion

~~MasTec~~The Company manages its operations under ~~five~~5 operating segments, which represent ~~MasTec’s five~~its 5 reportable segments: (1) Communications; (2) Clean Energy and Infrastructure; (3) Oil and Gas; ~~(3)~~(4) Electrical ~~Transmission; (4) Power Generation and Industrial~~Transmission and (5) Other. This structure is generally focused on broad end-user markets for ~~MasTec’s~~the Company’s labor-based construction services. All ~~five~~5 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, ~~and, to a lesser extent,~~as well as infrastructure for utilities, among others. ~~MasTec~~The Clean Energy and Infrastructure segment primarily serves energy, utility and other end-markets through the installation and construction of power generation facilities, including from clean energy and renewable sources, such as wind, solar and biomass, as well as various types of heavy civil and industrial infrastructure. The Company performs engineering, construction and maintenance services ~~on oil and natural gas~~for pipelines and processing facilities for the energy and utilities industries through its Oil and Gas segment. The Electrical Transmission segment primarily serves the energy and utility industries through the engineering, construction and maintenance of electrical transmission lines and substations. The Power Generation and Industrial segment primarily serves energy, utility and other end-markets through the installation and construction of conventional and renewable power facilities, related electrical transmission infrastructure, ethanol/biofuel facilities and various types of heavy civil and industrial infrastructure. The Other segment includes certain equity investees, the services of which vary from those provided by the Company’s ~~four~~ primary segments, as well as other small business units that perform construction and other services for a variety of international end-markets.

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, and for non-cash stock-based compensation expense, can also be subject to volatility from changes in the market price per share of our common stock or variations in the value of shares granted.industry. Segment EBITDA is calculated in a manner consistent with consolidated EBITDA.

For the three and nine month periods ended September 30, 2017, Other segment EBITDA included project losses of $0.4 million and $7.4 million, respectively, from a proportionately consolidated non-controlled Canadian joint venture, which is managed by a third party, and for which we have minimal direct construction involvement. For both the three and nine month periods ended September 30, 2016, Other segment EBITDA included $5.1 million of project losses on this proportionately consolidated non-controlled Canadian joint venture. For the nine month period ended September 30, 2016, EBITDA for the Oil and Gas and Electrical Transmission segments included first quarter project losses of $13.5 million and $15.1 million, respectively.

Summarized financial information for MasTec’s reportable segments is presented and reconciled to consolidated financial information for total MasTec in the following tables, ~~(in millions):~~

For the Three Months Ended September 30 For the Nine Months Ended September 30
Revenue: 2017 2016 2017 2016
Communications ^(a)
$ 610.5
$ 624.3
$ 1,762.2
$ 1,728.0
Oil and Gas 1,161.0
736.0
2,757.2
1,454.3
Electrical Transmission 81.8
101.7
277.3
283.6
Power Generation and Industrial 96.9
123.6
204.1
324.7
Other 10.6
7.6
14.2
14.9
Eliminations (5.0 ) (7.0 ) (10.9 ) (12.7 )
Consolidated revenue $ 1,955.8
$ 1,586.2
$ 5,004.1
$ 3,792.8


~~(a)~~	Revenue generated primarily by utilities customers represented 13.0% and 11.1% of Communications segment revenue for the three month periods ended September 30, 2017 and 2016, respectively, and represented 12.6% and 10.9% for the nine month periods ended September 30, 2017 and 2016, respectively.

For the Three Months Ended September 30 For the Nine Months Ended September 30
EBITDA: 2017 2016 2017 2016
Communications $ 65.3
$ 62.8
$ 173.2
$ 190.9
Oil and Gas 108.1
117.8
356.1
187.6
Electrical Transmission 4.5
(8.3 ) 11.2
(42.0 )
Power Generation and Industrial 9.3
6.1
14.8
13.8
Other 10.1
(3.1 ) 11.6
(2.6 )
Corporate (22.0 ) (24.3 ) (69.2 ) (55.1 )
Consolidated EBITDA $ 175.3
$ 151.0
$ 497.7
$ 292.6

For the Three Months Ended September 30 For the Nine Months Ended September 30
Depreciation and Amortization: 2017 2016 2017 2016
Communications $ 13.8
$ 12.5
$ 39.4
$ 37.2
Oil and Gas 26.0
20.7
71.1
58.2
Electrical Transmission 5.8
6.1
17.3
17.1
Power Generation and Industrial 2.9
1.6
5.8
4.6
Other 0.0
0.0
0.1
0.0
Corporate 1.6
1.7
4.7
5.1
Consolidated depreciation and amortization $ 50.1
$ 42.6
$ 138.4
$ 122.2

~~The following table, which may contain slight summation differences due to rounding, presents~~including a reconciliation of consolidated income before income taxes to EBITDA, ~~(in millions):~~all of which are presented in millions. The tables below may contain slight summation differences due to rounding.

For the Three Months Ended September 30 For the Nine Months Ended September 30
EBITDA Reconciliation: 2017 2016 2017 2016
Income before income taxes $ 107.6
$ 95.3
$ 314.3
$ 132.4
Plus:
Interest expense, net 17.6
13.1
45.0
37.9
Depreciation and amortization 50.1
42.6
138.4
122.2
Consolidated EBITDA $ 175.3
$ 151.0
$ 497.7
$ 292.6


	For the Three Months Ended March 31,
Revenue:	2021		2020
Communications (a)	$	568.6	$	644.1
Clean Energy and Infrastructure	350.4		286.3
Oil and Gas	725.5		359.1
Electrical Transmission	133.5		128.1
Other	0.0		0.0
Eliminations	(2.6)		(1.0)
Consolidated revenue	$	1,775.4	$	1,416.6

(a) Revenue generated primarily by utilities customers represented 20.1% and 15.2% of Communications segment revenue for the three month periods ended March 31, 2021 and 2020, respectively.


	For the Three Months Ended March 31,
EBITDA:	2021		2020
Communications	$	48.9	$	50.8
Clean Energy and Infrastructure	10.9		5.0
Oil and Gas	167.6		74.4
Electrical Transmission	3.6		8.3
Other	7.4		7.4
Corporate	(40.0)		(31.9)
Consolidated EBITDA	$	198.4	$	114.0


	For the Three Months Ended March 31,
Depreciation and Amortization:	2021		2020
Communications	$	21.8	$	19.7
Clean Energy and Infrastructure	7.6		4.0
Oil and Gas	52.1		28.1
Electrical Transmission	6.1		5.9
Other	0.0		0.0
Corporate	2.9		2.8
Consolidated depreciation and amortization	$	90.5	$	60.5


	For the Three Months Ended March 31,
EBITDA Reconciliation:	2021		2020
Income before income taxes	$	95.4	$	36.5
Plus:
Interest expense, net	12.5		17.0
Depreciation	79.3		53.1
Amortization of intangible assets	11.2		7.4
Consolidated EBITDA	$	198.4	$	114.0

Foreign ~~Operations.~~ Operations and Other. MasTec ~~operates~~has operations in North America, primarily in the United States and Canada, and, to a lesser extent, in ~~Mexico. For~~Mexico, the Caribbean and India. Revenue derived from U.S. operations totaled $1.7 billion and $1.4 billion for the three month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016, revenue of $1.9 billion and $1.5 billion, respectively, was derived from U.S. operations, and revenue of $61.0 million and $73.8 million, respectively, was~~2020, respectively. Revenue derived from foreign operations totaled $46.4 million and $45.7 million for the ~~majority~~three month periods ended March 31, 2021 and 2020, respectively, substantially all of which was derived from the Company’s Canadian ~~operations. For the nine month periods ended September 30, 2017 and 2016, revenue of $4.8 billion and $3.6 billion, respectively, was derived from U.S.~~ operations and revenue of $160.7 million and $222.8 million, respectively, was derived from foreign operations, the majority of which was from the Company’s Canadian operations. The majority of the Company’s foreign operations during the three and nine month periods ended September 30, 2017 and 2016 were in ~~the Company’s~~its Oil and Gas segment. Long-lived assets held in the U.S. included property and equipment, net, of ~~$629.2 million and $475.3 million~~$1.0 billion as of ~~September 30, 2017~~both March 31, 2021 and December 31, ~~2016, respectively,~~2020, and, for the Company’s businesses in foreign countries, ~~the majority of which are in Canada,~~ totaled ~~$62.2~~$22.2 million and ~~$73.8~~$22.8 million, respectively. Intangible assets and goodwill, net, related to the Company’s U.S. operations totaled approximately ~~$1.2 billion and $1.1~~$1.4 billion as of ~~September 30, 2017~~both March 31, 2021 and December 31, ~~2016, respectively,~~2020, and for the Company’s businesses in foreign countries, ~~the majority of which are in Canada,~~ totaled approximately ~~$114.3~~$49.4 million and ~~$107.8~~$50.5 million as of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, respectively. ~~Amounts~~The majority of the Company’s long-lived and intangible assets and goodwill in foreign countries relate to its Canadian operations. As of both March 31, 2021 and December 31, 2020, amounts due from customers from which foreign revenue was derived accounted for approximately ~~6% and 8%~~

5%, respectively, of the Company’s consolidated net accounts receivable position, ~~as of September 30, 2017 and December 31, 2016,~~ which represents accounts receivable, net, less ~~BIEC.~~

deferred revenue. Revenue from governmental entities for the three month periods ended March 31, 2021 and 2020 totaled approximately 4% and 2%, 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 Three Months Ended March 31,
Customer:	2021	2020
Enbridge, Inc. (a)	25%	1%
AT&T (b)	11%	24%

(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) various install-to-the-home businesses. Revenue from AT&T is included within the Communications segment. The decrease in AT&T revenue for the three month period ended March 31, 2021 as compared with the same period in 2020 was primarily driven by lower levels of wireless services, including from the effects of the COVID-19 pandemic and temporary project timing delays related to recently completed 5G spectrum auctions.

Energy Transfer affiliates ^(a)

AT&T (including DIRECTV^®) ^(b)

Note 14 -– Commitments and Contingencies

MasTec is subject to a variety of legal cases, claims and other disputes that arise from time to time in the ordinary course of its ~~business. See Note 14 - Commitments~~business, including project contract price and ~~Contingencies in the Company’s 2016 Form 10-K for additional information.~~acquisition purchase price disputes. MasTec cannot provide assurance that it will be successful in recovering all or any of the potential damages it has claimed or in defending claims against the Company. The outcome of such cases, claims and disputes cannot be predicted with certainty and an unfavorable resolution of one or more of them could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows.

Other Commitments and Contingencies

Leases. In the ordinary course of business, the Company enters into non-cancelable operating leases for certain of its facility, vehicle and equipment needs, including related party leases. See Note 8 - Lease Obligations and Note 15 - Related Party Transactions.

Letters of Credit. In the ordinary course of business, the Company is required to post letters of credit for its insurance carriers and surety bond providers and in support of performance under certain contracts as well as certain obligations associated with the Company’s ~~cost~~equity investments and ~~equity investees,~~other strategic arrangements, including its variable interest entities. Such letters of credit are generally issued by a bank or similar financial institution. The letter of credit commits the issuer to pay specified amounts to the holder of the letter of credit under certain conditions. If this were to occur, the Company would be required to reimburse the issuer of the letter of credit, which, depending upon the circumstances, could result in a charge to earnings. As of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, there were ~~$189.1~~$153.2 million and ~~$314.3~~$151.8 million, respectively, of letters of credit issued under the Company’s ~~Credit Facility.~~credit facilities. The Company is not aware of any material claims relating to its outstanding letters of credit as of ~~September 30, 2017~~March 31, 2021 or December 31, ~~2016.~~2020.

Performance and Payment Bonds. In the ordinary course of business, MasTec is required by certain customers to provide performance and payment bonds for contractual commitments related to ~~projects in process.~~its projects. These bonds provide a guarantee to the customer that the Company will perform under the terms of a contract and that the Company will pay its subcontractors and vendors. If the Company fails to perform under a contract or to pay its subcontractors and vendors, the customer may demand that the surety make payments or provide services under the bond. The Company must reimburse the surety for expenses or outlays it incurs. As of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, outstanding performance and payment bonds ~~totaled $119.2~~approximated $1,739.7 million and ~~$72.9~~$764.8 million, respectively, and estimated costs to complete projects secured by these bonds totaled ~~$51.3~~$773.7 million and ~~$9.5~~$263.2 million as of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, respectively. ~~These amounts do not include~~Included in these balances as of March 31, 2021 are $115.0 million of outstanding performance and payment bonds ~~associated with~~issued on behalf of the Company’s ~~equity investees.~~

~~Cost and Equity Investees and Other Entities.~~ ~~The Company holds a 35% undivided interest in a~~ proportionately consolidated non-controlled ~~Canadian~~ contractual joint ~~venture that was underway when~~ventures, representing the Company acquired Pacer in 2014, whose sole activity involves the construction of a bridge, a business in which the Company does not otherwise engage. This joint venture, which is managed by a third party, and for which the Company has minimal direct construction involvement, automatically terminates upon completionCompany’s proportionate share of the ~~project.~~ total bond obligation for the related projects.

Investment and Strategic Arrangements. The Company ~~also~~ holds undivided interests, ranging from 85% to 90%, in ~~seven~~multiple proportionately consolidated non-controlled contractual joint ventures that provide infrastructure construction services for electrical transmission projects, as well as undivided interests ranging from 30% to 50% in 3 civil construction projects. Income and/or losses incurred by these joint ventures are generally shared proportionally by the respective joint venture members, with the members of the joint ventures jointly and severally liable for all of the obligations of the joint venture. The respective joint venture agreements provide that each joint venture partner indemnify the other party for any liabilities incurred by such joint venture in excess of its ratable portion of such liabilities. Thus, it is possible that the Company could be required to pay or perform obligations in excess of its share if the other joint venture partners fail or refuse to pay or perform their respective share of the obligations. As of ~~September 30, 2017,~~March 31, 2021, the Company was not aware of ~~circumstances that would reasonably lead to~~ material future claims against it in connection with these arrangements. Included in the Company’s cash balances as of March 31, 2021 and December 31, 2020 are amounts held by entities that are proportionately consolidated totaling $7.6 million and $8.2 million, respectively. These amounts are available to support the operations of those entities, but are not available for the Company’s other operations. In addition, the Company provided $0.7 million of project-related financing to its contractual joint ventures for the three month period ended March 31, 2021.

The Company has other investment and strategic arrangements, ~~as discussed in~~under which it may incur costs or provide financing, performance, financial and/or other guarantees. See Note 4 - Fair Value of Financial Instruments and Note 15 - Related Party ~~Transactions. From time~~Transactions for additional information pertaining to ~~time,~~ the ~~Company may incur costs or provide financing, performance, financial and/or other guarantees to or in connection with its investees.~~Company’s investment and strategic arrangements.

Self-Insurance. MasTec maintains insurance policies for workers’ compensation, general liability and automobile liability, which are subject to per claim deductibles. The Company is self-insured up to the amount of the deductible. The Company also maintains excess umbrella coverage. As of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, MasTec’s estimated liability for unpaid claims and associated expenses, including incurred but not reported losses related to these policies, totaled ~~$98.5~~$136.3 million and ~~$85.8~~$129.6 million, respectively, of which ~~$67.5~~$89.0 million and ~~$55.2~~$86.1 million, respectively, were reflected within other long-term liabilities in the consolidated balance sheets.

MasTec also maintains an insurance policy with respect to employee group medical claims, which is subject to annual per employee maximum losses. MasTec’s estimated liability for employee group medical claims totaled ~~$2.6~~$5.3 million and $4.3 million as of ~~both September 30, 2017~~March 31, 2021 and December 31, ~~2016.~~2020, respectively.

The Company is required to post collateral, generally in the form of letters of credit, surety bonds and ~~provide~~ cash ~~collateral~~ to certain of its insurance ~~carriers and to provide surety bonds in certain states.~~carriers. Insurance-related letters of credit for the Company’s workers’ compensation, general liability and automobile liability policies amounted to ~~$84.6 million and $85.1~~$59.3 million as of ~~September 30, 2017~~both March 31, 2021 and December 31, 2016, respectively. In addition, cash collateral deposited with insurance carriers, which is included within other long-term assets, amounted to $1.5 million for these policies as of both September 30, 2017 and December 31, 2016.2020. Outstanding surety bonds related to ~~workers’ compensation~~ self-insurance programs amounted to ~~$13.7 million and $13.5~~$37.4 million as of ~~September 30, 2017~~both March 31, 2021 and December 31, ~~2016, respectively.~~2020.

~~Employment Agreements.~~ The Company has employment agreements with certain executives and other employees, which provide for compensation and certain other benefits and for severance payments under certain circumstances. Certain employment agreements also contain clauses that become effective upon a change in control of the Company. Upon the occurrence of any of the defined events in the various employment agreements, the Company would be obligated to pay certain amounts to the relevant employees, which vary with the level of the employees’ respective responsibility.

Collective Bargaining Agreements and Multiemployer Plans. As discussed in Note 10 - Other Retirement Plans, certain of MasTec’s subsidiaries are party to various collective bargaining agreements with unions representing certain of their employees, which require the Company to pay specified wages, provide certain benefits ~~to their union employees~~ and contribute certain amounts to ~~multiemployer pension and other multiemployer benefits plans and trusts.~~MEPPs. The Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980 (collectively, “ERISA”), which governs U.S.-registered ~~multiemployer pension plans,~~MEPPs, subjects employers to substantial liabilities in the event of ~~the~~an employer’s complete or partial withdrawal from, or upon termination of, such plans.

The Company currently contributes, and in the past, has contributed to, plans that are underfunded, and, therefore, could have potential liability associated with a voluntary or involuntary withdrawal from, or termination of, these plans. As ~~described in the Company’s 2016 Form 10-K, the Company, along with other members~~ of the Pipe Line Contractors Association (the “PLCA”), voluntarily withdrew from the Central States Southeast and Southwest Areas Pension Fund (“Central States”) in November 2011, for which the Company established and paid a $6.4 million withdrawal liability. The Company is in arbitration to determine if there is any remaining amount owed on this withdrawal liability, and during the third quarter of 2017, the Company recognized $0.6 million of expense in connection with the expected settlement of this matter.

~~Other than the Company’s 2011 withdrawal from Central States and certain other underfunded plans, as described in the Company’s 2016 Form 10-K,~~March 31, 2021, the Company does not have plans to withdraw from, and is not aware of circumstances that would reasonably lead to material claims against it, in connection with ~~these plans. However, there~~the MEPPs in which it participates. There can be no assurance, however, that the Company will not be assessed liabilities in the ~~future.~~

Based upon the information available to the Company from plan administrators as of September 30, 2017, several of the multiemployer pension plans in which it participates are underfunded and, as a result, the Company could be required to increase its contributions,future, including in the form of a surcharge on future benefit ~~contributions.~~contributions or increased contributions on underfunded plans. The amount ~~of additional funds~~ the Company ~~may~~could be obligated to pay or contribute in the future cannot be estimated, as these amounts are based on future levels of work of the union employees covered by these plans, investment returns, which could be negatively affected by economic and market conditions, and the level of underfunding of such plans.

Indemnities. The Company generally indemnifies its customers for the services it provides under its contracts, as well as other specified liabilities, which may subject the Company to indemnity claims, liabilities and related litigation. As of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, the Company was not aware of any material asserted or unasserted claims in connection with these indemnity obligations.

Other Guarantees. In From time to time in the ordinary course of its business, ~~from time to time,~~ MasTec guarantees the obligations of its subsidiaries, including obligations under certain contracts with customers, certain lease obligations, and in some states, obligations in connection with obtaining contractors’ licenses. MasTec has also issued performance and other guarantees in connection with certain of its equity ~~investees.~~investments. MasTec also generally warrants the work it performs ~~for a one to two year period~~ following substantial completion of a project. Much of the work performed by the Company is evaluated for defects shortly after the work is completed. ~~Accrued warranty claims are, and historically have been, de minimis. However, if~~If warranty claims occur, the Company could be required to repair or replace warrantied items, or, if customers elect to repair or replace the warrantied item using the services of another provider, the Company could be required to pay for the cost of the repair or replacement. Warranty claims have historically not been material.

Concentrations of Risk. The Company had approximately ~~455~~330 customers for the ~~nine~~three month period ended ~~September 30, 2017~~.March 31, 2021. As of ~~September 30, 2017~~ ~~and~~ ~~December~~March 31, ~~2016, one customer~~2021, 2 customers each accounted for approximately ~~44%~~14% and ~~24%~~10%, respectively, of the Company’s consolidated net accounts receivable position, which represents accounts receivable, net, less ~~BIEC.~~deferred revenue. As of ~~September 30, 2017 and~~ December 31, ~~2016, a separate customer~~2020, 2 customers each accounted for approximately ~~13%~~15% and ~~17%~~12%, respectively, of the Company’s consolidated net accounts receivable position. In addition, the Company derived ~~83%~~68% and ~~80%, respectively,~~62% of its revenue from its top ~~ten~~10 customers for the three month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016, and derived 80% and 76% of its revenues, respectively, from its top ten customers for the nine month periods ended~~ ~~September 30, 2017~~ ~~and 2016.~~2020, respectively.

Note 15 -– Related Party Transactions

For the three month periods ended September 30, 2017 and 2016, revenue recognized by the Company’s Pacer subsidiary for work performed for a contractual joint venture in which it holds a 35% undivided interest totaled $0.6 million and $0.2 million, respectively, and for the nine month periods ended September 30, 2017 and 2016, totaled $0.9 million and $0.8 million, respectively. As of September 30, 2017 and December 31, 2016, receivables from this contractual joint venture totaled $0.9 million and $0.7 million, respectively. Related performance guarantees, which are based on the original full contract value, as of both September 30, 2017 and December 31, 2016, totaled Canadian $132.1 million (or approximately $105.9 million and $98.3 million, respectively). In connection with this contractual joint venture, the Company provided project-related financing of $2.7 million and $5.9 million, respectively, for the three and nine month periods ended September 30, 2017, and $0.8 million and $5.6 million, respectively, for the three and nine month periods ended September 30, 2016. As of September 30, 2017, there were no additional amounts committed to this entity.

In connection with an April 2017 acquisition, the Company acquired a 40% interest in an entity, valued at $0.4 million, which is accounted for as an equity method investment. The Company has a subcontracting arrangement with this entity. For the nine month period ended September 30, 2017, the Company incurred $0.2 million of expenses under this subcontracting arrangement, and there were no amounts outstanding as of September 30, 2017. During the nine month period ended September 30, 2017, the Company advanced $0.3 million to this entity, net, of which $0.3 million was outstanding as of September 30, 2017. The acquired company had a vendor financing arrangement with an entity that was owned by a member of subsidiary management, which arrangement was completed in the third quarter of 2017. The payments made under this arrangement for the three and nine month periods ended September 30, 2017 totaled $1.4 million and $5.3 million, respectively, and no amounts were outstanding as of September 30, 2017.

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 and business development activities, from a number of different vendors on a non-exclusive basis, ~~including CCI,~~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 ~~Company has~~three month periods ended March 31, 2021 and 2020, such payments to related party entities totaled approximately $20.5 million and $25.3 million, respectively. Payables associated with such arrangements totaled approximately $10.4 million and $8.9 million as of March 31, 2021 and December 31, 2020, respectively. Revenue from such related party arrangements totaled approximately $1.1 million and $1.0 million for the three month periods ended March 31, 2021 and 2020, respectively. Related amounts receivable, net, totaled approximately $0.2 million and $0.5 million as of March 31, 2021 and December 31, 2020, respectively.

In 2018, MasTec acquired a ~~cost method investment.~~construction management firm specializing in steel building systems, of which 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, was a minority owner. Amounts outstanding for advances made by the Company on behalf of this entity, net, totaled approximately $0.2 million and $0.1 million as of March 31, 2021 and December 31, 2020, respectively, which amounts are expected to be settled under customary terms associated with the related purchase agreement.

The Company rents and leases equipment, and purchases certain supplies and servicing from CCI. Juan Carlos Mas serves as the chairman of ~~CCI.~~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 month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016,~~2020, MasTec paid CCI ~~approximately $22.9~~$5.0 million and ~~$10.0~~$0.3 million, net of rebates, respectively, ~~for equipment supplies, rentals, leases and servicing. For the nine month periods ended September 30, 2017 and 2016, MasTec paid~~related to this activity. Amounts payable to CCI, net of rebates receivable, totaled approximately ~~$34.9~~$4.6 million and ~~$13.7~~$4.2 million ~~respectively, net~~as of ~~rebates. As of September 30, 2017~~March 31, 2021 and December 31, ~~2016, related payables~~2020, respectively. The Company has also rented equipment to CCI. Revenue from equipment rentals to CCI totaled approximately ~~$6.1~~$0.1 million for the three month period ended March 31, 2021, for which related receivables totaled approximately $0.1 million as of March 31, 2021, and ~~$1.5 million, respectively.~~as of December 31, 2020, were de minimis.

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~~2 members of management of a MasTec subsidiary. For the three month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016,~~2020, MasTec incurred ~~$39.2~~subcontracting expenses of approximately $29.0 million and ~~$5.6~~$0.7 million, respectively, ~~of expenses~~ under this subcontracting arrangement, and for the nine month periods ended September 30, 2017 and 2016, MasTec incurred $54.8 million and $8.8 million, respectively. During the third quarter of 2016, the Company sold equipment totaling $0.3 million to this entity.these arrangements. As of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, related amounts payable totaled ~~$20.1~~approximately $18.6 million and ~~$0.1~~$1.4 million, respectively.

MasTec has a leasing arrangement for an aircraft that is owned by an entity that Jorge Mas owns. For both the three month periods ended March 31, 2021 and 2020, MasTec paid approximately $0.6 million related to this leasing arrangement.

MasTec performs construction services on behalf of a professional Miami soccer franchise (the “Franchise”) in which Jorge Mas and José R. Mas are minority owners. Services provided by MasTec include the construction of a soccer facility and stadium as well as wireless infrastructure services. For the three month period ended March 31, 2021, charges under these arrangements were de minimis, and for the three month period ended March 31, 2020, MasTec charged approximately $4.0 million. Related amounts outstanding as of both March 31, 2021 and December 31, 2020 were de minimis. Payments for other expenses related to the Franchise for the three month periods ended March 31, 2021 and 2020 totaled approximately $0.1 million and $0.2 million, respectively, for which there were 0 amounts outstanding as of either March 31, 2021 or December 31, 2020.

MasTec leases employees and provides satellite communications services to a customer in which Jorge Mas and José R. Mas own a majority interest. For both three month periods ended September 30, 2017 and 2016, MasTec charged approximately $0.2 million to this customer, and for both the nine month periods ended September 30, 2017 and 2016, charged $0.6 million. As of both September 30, 2017 and December 31, 2016, outstanding receivables from employee leasing arrangements with this customer totaled $0.2 million. The Company also provides satellite communication services to this customer. For both the three month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016, revenue from satellite communication services provided~~2020, charges to this customer under these arrangements totaled approximately ~~$0.2 million, and for the nine month periods ended September 30, 2017 and 2016, satellite communication revenues totaled $0.6 million and $0.7 million, respectively.~~$0.3 million. As of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016, receivables from this arrangement totaled approximately $0.3 million and $0.4 million, respectively.~~

MasTec has a leasing arrangement with an independent third party that leases an aircraft from a Company owned by Jorge Mas. For the three month periods ended September 30, 2017 and 2016, MasTec paid $0.5 million and $0.7 million, respectively, under this leasing arrangement, and for the nine month periods ended September 30, 2017 and 2016, MasTec paid $1.5 million and $2.0 million, respectively. As of both September 30, 2017 and December 31, 2016,2020, related amounts ~~payable were de minimis.~~

For the three month periods ended September 30, 2017 and 2016, related party lease payments for operational facilities and equipment, which are primarily associated with members of subsidiary management, totaled approximately $11.3 million and $12.5 million, respectively, and for the nine month periods ended September 30, 2017 and 2016, related party lease payments totaled approximately $38.4 million and $31.6 million, respectively. Payables associated with related party leases totaled approximately $0.6 million and $0.3 million as of September 30, 2017 and December 31, 2016, respectively. Additionally, payments for various types of supplies and services, including ancillary construction services, project-related site restoration and marketing and business development activities associated with members of subsidiary management totaled approximately $26.4 million and $7.4 million for the three month periods ended September 30, 2017 and 2016, respectively, and totaled $41.0 million and $14.2 million for the nine month periods ended September 30, 2017 and 2016, respectively. As of September 30, 2017 and December 31, 2016, associated amounts payablereceivable totaled approximately $0.8 million and ~~$3.7~~$0.9 million, respectively. ~~In addition, MasTec performs construction services for~~

The Company, through a second quarter 2020 acquisition, has a 25% interest in an entity, ~~associated~~under which the acquired business and the 25%-owned entity have a subcontracting arrangement. The Company’s interest in this entity, for which post-acquisition operating activity is de minimis, is accounted for as an equity method investment. As of both March 31, 2021 and December 31, 2020, the Company’s net investment in this entity was a liability of approximately $2.0 million, which net amount includes approximately $1.9 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 ~~member~~$15.0 million letter of ~~subsidiary management. Revenue from~~credit issued by the Company on behalf of this ~~arrangement totaled $1.0 million for~~entity. For the three month period ended September 30, 2017, and related receivables totaled $0.5 million as of September 30, 2017. The oil and gas pipeline equipment company that was acquired by MasTec in the third quarter of 2017 was formerly owned by a member of subsidiary management. MasTec previously leased equipment from this company. The Company paid $40.6 million in cash and $57.3March 31, 2021, approximately $0.2 million of ~~contingent consideration~~income was recognized in connection with ~~this acquisition.~~

~~Non-controlling interests in entities consolidated by the Company represent ownership interests held by certain members~~these arrangements. As of ~~management of several of the Company’s subsidiaries, primarily in our Oil~~March 31, 2021 and ~~Gas segment,~~December 31, 2020, related amounts receivable totaled $0.6 million and the Company has a subcontracting arrangement with one of these entities for the performance of ancillary oil and gas construction services, which transactions are eliminated in consolidation. The Company made distributions of earnings of $1.3$0.4 million, ~~in the first quarter of 2017 to holders of its non-controlling interests.~~respectively.

Split Dollar Agreements

MasTec has split dollar life insurance agreements with ~~each~~trusts, of which Jorge Mas or José R. Mas ~~and Jorge Mas. In~~is a trustee. There were 0 payments made in connection with ~~the split dollar agreement for José R. Mas, the Company made no payments~~these agreements in either of the three month periods ended ~~September 30, 2017~~March 31, 2021 or 2020, and 2016, and paid $0.7 million in each of the nine month periods ended September 30, 2017 and 2016. In connection with the split dollar agreement for Jorge Mas, the Company paid $0.6 million for both the three month periods ended September 30, 2017 and 2016, and paid $1.1 million for both the nine month periods ended September 30, 2017 and 2016. As of September 30, 2017 and December 31, 2016, life insurance assets associated with these agreements totaled ~~$16.6~~approximately $22.2 million as of both March 31, 2021 and ~~$14.8 million, respectively, which amount is included within other long-term assets.~~

~~Note 16 – Supplemental Guarantor Condensed Unaudited Consolidating Financial Information~~

The following supplemental financial information sets forth the condensed unaudited consolidating balance sheets and the condensed unaudited consolidating statements of operations and comprehensive income (loss) and cash flows for MasTec, Inc., the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis and the eliminations necessary to arrive at the information for the Company as reported on a consolidated basis. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions between or among MasTec, Inc., the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries. Investments in subsidiaries are accounted for using the equity method for this presentation.

~~CONDENSED UNAUDITED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in millions)~~December 31, 2020.

For the Three Months Ended September 30, 2017 MasTec, Inc.
Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries
Eliminations
Consolidated
MasTec, Inc.
Revenue $ —
$ 1,860.3
$ 130.3
$ (34.8 ) $ 1,955.8
Costs of revenue, excluding depreciation and amortization —
1,640.3
120.7
(34.8 ) 1,726.2
Depreciation and amortization —
41.1
9.0
—
50.1
General and administrative expenses 0.5
61.7
4.2
—
66.4
Interest expense (income), net —
33.2
(15.6 ) —
17.6
Equity in earnings of unconsolidated affiliates —
—
(7.4 ) —
(7.4 )
Other income, net —
(4.6 ) (0.1 ) —
(4.7 )
(Loss) income before income taxes $ (0.5 ) $ 88.6
$ 19.5
$ —
$ 107.6
Benefit from (provision for) income taxes 0.2
(33.8 ) (9.9 )
—
(43.4 )
Net (loss) income before equity in income from subsidiaries $ (0.3 ) $ 54.8
$ 9.6
$ —
$ 64.2
Equity in income from subsidiaries, net of tax 64.1
—
—
(64.1 ) —
Net income (loss) $ 63.8
$ 54.8
$ 9.6
$ (64.1 ) $ 64.2
Net income attributable to non-controlling interests —
—
0.4
—
0.4
Net income (loss) attributable to MasTec, Inc. $ 63.8
$ 54.8
$ 9.2
$ (64.1 ) $ 63.8
Comprehensive income (loss) $ 65.2
$ 54.9
$ 11.1
$ (65.5 ) $ 65.7

~~CONDENSED UNAUDITED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in millions)~~

~~CONDENSED UNAUDITED CONSOLIDATING BALANCE SHEETS (in millions)~~

~~CONDENSED UNAUDITED CONSOLIDATING STATEMENTS OF CASH FLOWS (in millions)~~

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not historical facts but are the intent, belief, or current expectations of our business and industry and the assumptions upon which these statements are based. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future ~~revenues~~revenue and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions, dispositions or ~~dispositions.~~other strategic arrangements. Words such as “anticipates,” “expects,” “intends,” “will,” “could,” “would,” “should,” “may,” “plans,” “believes,” “seeks,” “estimates,” “forecasts,” “targets” and variations of these words and negatives thereof and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Additionally, many of these risks and uncertainties could be amplified by the ongoing COVID-19 pandemic.

These risks and uncertainties include those described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this report and in our ~~2016~~2020 Form 10-K, including those described under “Cautionary Statement Regarding Forward-Looking Statements” and “Risk Factors,” as updated by Item 1A, “Risk Factors” in this report and other filings we make with the SEC. Forward-looking statements that were true at the time made may ultimately prove to be incorrect or false. Readers are cautioned to not place undue reliance on forward-looking statements, which reflect management’s view only as of the date of this report. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion and analysis of our business, financial ~~position~~condition and results of operations as of and for the three ~~and nine~~ month periods ended ~~September 30, 2017~~March 31, 2021 and ~~2016~~.2020. This discussion and analysis should be read in conjunction with our consolidated financial statements and notes thereto in Item 1 of this Quarterly Report on Form 10-Q (this “Form 10-Q”), and the audited consolidated financial statements, accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) contained in our ~~2016~~2020 Form 10-K. In this MD&A, “$” means U.S. dollars unless specified otherwise.

Impact of the COVID-19 Pandemic

During the first quarter of 2020, the World Health Organization declared a global pandemic related to the rapidly growing outbreak of COVID-19. The COVID-19 pandemic disrupted business activities and significantly affected global economic conditions in 2020 and continuing into 2021 as federal, state and local governments imposed restrictions and mitigation measures to address the public health crisis, the effects of which resulted in workforce, supply chain and production disruptions and created significant uncertainties in the U.S. and global economies. While the adverse effects of these restrictions and mitigation measures partially subsided in the second half of 2020 and into 2021, the possibility of future restrictions remains in the event of a rise in the number of COVID-19 cases in the future. The extent to which the COVID-19 pandemic could affect our business, operations and financial results will depend upon numerous evolving factors that we may not be able to accurately predict, including the availability of effective treatments and vaccines, the speed with which they can be administered to the public, the degree to which the public is willing to be vaccinated and the degree that vaccines are effective in preventing infection or illness from existing or new strains of COVID-19, along with the length and extent of any continuing economic and market disruptions.

As a provider of essential services, all of our business segments continued to operate throughout 2020 and into 2021, and where safe and possible, our customers generally directed us to maintain normal work schedules. Our business model has, thus far, proven resilient, and we continue to adapt to the changing operational and economic environment that has resulted from the COVID-19 pandemic. Our top priority has been to take appropriate actions to protect the health and safety of our employees, customers and business partners. We have adjusted our standard operating procedures within our business operations to ensure employee and customer safety, and are continually monitoring evolving health guidelines and responding to changes as appropriate. These procedures have included implementation of specialized training programs, appropriate social distancing procedures and required use of personal protective equipment for our crew operations, as well as appropriate sanitation measures for key equipment and facilities. We have restricted non-essential business travel and incorporated work-at-home programs as appropriate for our administrative offices. For in-office operations, appropriate safety and social distancing measures have been incorporated. We have also developed human resource guidance to assist our employees. In certain locations where our operations experienced challenges as a result of the pandemic, we have actively collaborated with our customers to minimize potential service disruptions and operational impacts.

The COVID-19 pandemic had a negative impact on our operations in 2020, and is expected to continue to affect our business activities in 2021. These impacts include lost productivity from governmental permitting approval delays, reduced crew productivity due to social distancing, other mitigation measures and other factors, the health and availability of work crews or other key personnel, including subcontractors, supply chain disruptions, and/or delayed project start dates or project shutdowns or cancellations that may be mandated or requested by governmental authorities or others, all of which could result in lower revenue or higher operating costs and/or create lower levels of overhead cost absorption. We continue to actively monitor the effects of the COVID-19 pandemic on our operations and may take further actions, as necessary, that we determine to be in the best interests of our employees, customers, business partners and stakeholders, or as required by federal, state, or local authorities. Additionally, disruptions in economic activity as a result of the COVID-19 pandemic have had, and may continue to have, adverse effects across our end markets, particularly in the oil and gas sector. To the extent that future business activities are adversely affected by the pandemic, we intend to take appropriate actions to mitigate any such impacts.

Several relief measures have been enacted in response to the effects of the COVID-19 pandemic, including the CARES Act and the Coronavirus Relief Act. We have deferred approximately $59 million of payroll taxes under the CARES Act, half of which are due by December 31, 2021, with the remainder due by December 31, 2022. We will continue to monitor and evaluate the potential effects, usefulness of, and qualification for, additional COVID-19 relief measures on our financial position, results of operations and cash flows.

Notwithstanding moderation of the COVID-19 pandemic and easing of governmental and other restrictions, we may continue to experience negative effects on our business and operations from possible longer-term changes in consumer and customer behavior, and/or from continuing negative economic conditions. We believe that we have taken appropriate steps to mitigate the impacts of the COVID-19 pandemic on our business; however, the potential effects of the COVID-19 pandemic are uncertain, as they depend upon numerous evolving factors that we may not be able to accurately predict, and therefore, any future impacts on our business, financial condition and/or results of operations cannot be quantified or predicted with specificity.

As of March 31, 2021, we maintained a strong balance sheet, have strong relationships with our banking partners and had ample liquidity totaling approximately $1.7 billion, comprising $1.2 billion of availability under our Credit Facility and $512 million of cash. We believe that our financial position, strong cash flows and operational strengths will enable us to manage the current challenges and uncertainties resulting from the COVID-19 pandemic. Our business operations typically generate significant cash flow, affording us the flexibility to invest strategically in our efforts to maximize shareholder value through acquisitions and other strategic arrangements, share repurchases and capital expenditures. We are carefully managing liquidity and are monitoring any potential effects from the pandemic on our financial results, cash flows and/or working capital, and intend to take appropriate actions in efforts to mitigate any impacts.

We are a leading infrastructure construction company operating mainly throughout North America across a range of industries. Our primary activities include the engineering, building, installation, maintenance and upgrade of communications, energy, utility and ~~utility~~other infrastructure, such as: wireless, wireline/fiber ~~install-to-the-home~~ and customer fulfillment activities; ~~petroleum~~power generation, including from clean energy and ~~natural gas~~renewable sources; pipeline infrastructure; electrical utility transmission and distribution; ~~conventional and renewable power generation;~~ heavy ~~civil~~civil; and industrial infrastructure. Our customers are primarily in these industries. Including our predecessor companies, we have been in business for ~~almost~~over 90 years. For the twelve month period ended March 31, 2021, we had an average of approximately 19,000 employees and 450 locations. We offer our services primarily under the MasTec service ~~mark and, as of September 30, 2017, we had approximately 21,500 employees and 415 locations.~~mark. We have been consistently ranked among the top specialty contractors by Engineering News-Record for the past several years.

We provide our services to a diversified base of customers. We often provide services under master service and other service agreements, which are generally multi-year agreements. The remainder of our work is generated pursuant to contracts for specific projects or jobs that require the construction or installation of an entire infrastructure system or specified units within an infrastructure system. Revenue from non-recurring, project specific work may experience greater variability than master service and other service agreement work due to the need to replace the revenue as projects are completed. If we are not able to replace work from completed projects with new project work, we may not be able to maintain our current revenue levels or our current level of capacity and resource utilization. We actively review our backlog of project work and take appropriate action to minimize such exposure.

We manage our operations under five operating segments, which represent our five reportable segments: (1) Communications; (2) Clean Energy and Infrastructure; (3) Oil and Gas; ~~(3)~~(4) Electrical ~~Transmission; (4) Power Generation and Industrial~~Transmission and (5) Other. This structure is generally focused on broad end-user markets for our labor-based construction services. See Note 13 - Segments and Related Information and Note 14 - Commitments and Contingencies in the notes to the ~~condensed unaudited~~ consolidated financial statements, which are incorporated by reference, for segment ~~related~~results and information ~~as well as operating results by segment~~ and significant customer concentrations.

Estimated backlog represents the amount of revenue we expect to realize over the next 18 months from future work on uncompleted construction contracts, including new contracts under which work has not begun, as well as revenue from change orders and renewal options. Our estimated backlog also includes amounts under master service and other service agreements and includes our proportionate share of estimated revenue from proportionately consolidated non-controlled contractual joint ventures. Estimated backlog for work under master service and other service agreements is determined based on historical trends, anticipated seasonal impacts, experience from similar projects and estimates of customer demand based on communications with our customers. WeBased on current expectations of our customers’ requirements, we expect to realize approximately ~~25%~~67% of our ~~September 30, 2017~~ estimated March 31, 2021 backlog in ~~2017.~~2021. The following table presents 18-month estimated backlog by reportable segment as of the dates indicated:


Reportable Segment (in millions):	March 31, 2021		December 31, 2020		March 31, 2020
Communications	$	3,751	$	3,806	$	3,987
Clean Energy and Infrastructure	1,386		1,025		1,307
Oil and Gas	2,211		2,486		2,597
Electrical Transmission	516		557		434
Other	—		—		1
Estimated 18-month backlog	$	7,864	$	7,874	$	8,326

~~Approximately 65%~~As of March 31, 2021, 46% of our backlog ~~as of September 30, 2017~~ is attributable to amounts under master service or other service agreements, pursuant to which our customers are not contractually committed to purchase a minimum amount of services. Most of these agreements can be canceled on short or no advance notice. Timing of revenue for construction and installation projects included in our backlog can be subject to change as a result of customer, regulatory or other delays ~~regulatory factors~~or cancellations, including from the potential adverse effects of the COVID-19 pandemic on economic activity, and/or other project-related factors. These changes could cause estimated revenue to be realized in periods later than originally expected, or not at all. ~~In the past, we have~~We occasionally ~~experienced~~experience postponements, cancellations and reductions in expected future work from master service agreements and/or construction projects due to changes in our customers’ spending plans, ~~as well as on construction projects due to~~ market volatility, ~~and~~changes in governmental permitting, regulatory delays and/or other factors. There can be no assurance as to our customers’ requirements or if actual results will be consistent with the ~~accuracy of~~estimates included in our ~~estimates.~~forecasts. As a result, our backlog as of any particular date is an uncertain indicator of future revenue and earnings.

Subsequent to September 30, 2017, we were granted a large pipeline construction project award with an expected contract value of over $1.5 billion, which is expected to be reflected in backlog at year-end 2017.

Backlog ~~is not a term recognized under U.S. GAAP; however, it~~ is a common measurement used in our industry. Our methodology for determining backlog may not, however, be comparable to the methodologies used by others. Backlog differs from the amount of our remaining performance obligations, which are described in Note 1 -

Business, Basis of Presentation and Significant Accounting Policies in the notes to the consolidated financial statements, which is incorporated by reference. As of March 31, 2021, total 18-month backlog differed from the amount of our remaining performance obligations due primarily to the inclusion of $3.2 billion of estimated future revenue under master service and other service agreements within our backlog estimates, as described above, and the exclusion of approximately $0.4 billion of remaining performance obligations and estimated future revenue under master service and other service agreements in excess of 18 months, which amount is not included in the backlog estimates above. Backlog expected to be realized in 2021 differed from the amount of remaining performance obligations expected to be recognized for the same period due primarily to the inclusion of approximately $1.2 billion of estimated future revenue under master service and other service agreements that is included within the related backlog estimate.

Economic, Industry and Market Factors

WeIn addition to the effects of the pandemic noted above, we closely monitor the effects ~~that~~of changes in economic and market conditions ~~may have~~ on our customers. ~~General~~Changes in general economic and market conditions can negatively affect demand for our customers’ products and services, which can ~~lead to rationalization of~~affect our customers’ planned capital and maintenance budgets in certain end-markets. ~~Fluctuations~~Market, regulatory and industry factors could affect demand for our services, or the cost to provide such services, including (i) changes to our customers’ capital spending plans, including any potential effects from public health issues, such as the recent COVID-19 pandemic; (ii) new or changing regulatory requirements, governmental policy changes, and customer or industry initiatives, including with respect to climate change, sustainability and related environmental concerns, and/or from changes in governmental permitting; (iii) economic, political or other market developments or uncertainty, including access to capital for customers in the industries we serve; (iv) changes in technology, tax and other incentives; and (v) mergers and acquisitions among the customers we serve. Changes in demand for, and/or fluctuations in market prices for oil, gas and other fuel sources, and availability of transportation and transmission capacity can also affect demand for our services, in particular, on pipeline and ~~power~~energy generation construction ~~services.~~projects. These fluctuations, as well as the highly competitive nature of our industry, can result ~~and in the past, have resulted,~~ in lower ~~bids~~levels of activity and ~~lower~~ profit on the services we provide. In the face of increased pricing pressure or other market developments, we strive to maintain our profit margins through productivity improvements, ~~and~~ cost reduction programs. Other market, regulatory and industry factors, such as (i) changes to our customers’ capital spending plans; (ii) mergers and acquisitions among the customers we serve; (iii) access to capital for customers in the industries we serve; (iv) new programs and/or changing regulatory requirements or other governmental policy uncertainty; (v) economic, market or political developments; and (vi) changes in technology, tax and other incentives could also increase or reduce demand for our services.business streamlining efforts. While we actively monitor economic, industry and market factors that could affect our business, we cannot predict the effect that changes in such factors may have on our future results of operations, liquidity and cash flows, and we may be unable to fully mitigate, or benefit from, such changes.

~~Impact~~Effect of Seasonality and Cyclical Nature of Business

Our revenue and results of operations can be subject to seasonal and other variations. These variations are influenced by weather, customer spending patterns, bidding seasons, project schedules, ~~and~~public health matters, such as the COVID-19 pandemic, holidays and/or timing, in particular, for large non-recurring ~~projects and holidays.~~projects. Typically, our revenue is lowest inat the ~~first quarter~~beginning of the year and during the winter months because cold, snowy or wet conditions cause project delays. Revenue is generally higher during the summer and fall months due to increased demand for our services when favorable weather conditions exist in many of the ~~second quarter is typically higher than~~regions in ~~the first quarter, as some projects begin,~~which we operate, but continued cold and wet weather can often ~~impact~~affect second quarter productivity. ~~The third and fourth quarters are typically the most productive quarters of the year, as a greater number of projects are underway and weather is normally more accommodating to construction projects.~~ In the fourth quarter, many projects tend to be completed by customers seeking to spend their capital budgets before the end of the year, which generally has a positive ~~impact~~effect on our revenue. However, the holiday season and inclement weather can cause delays, which can reduce revenue and increase costs on affected projects. Any quarter may be positively or negatively affected by adverse or unusual weather patterns, including warm winter weather, excessive rainfall, flooding or natural catastrophes such as hurricanes or other severe weather, making it difficult to predict quarterly revenue and margin variations.

Additionally, our industry can be highly cyclical. Fluctuations in end-user demand within the industries we serve, or in the supply of services within those industries, can ~~impact~~affect demand for our services. As a result, our business may be adversely affected by industry declines or by delays in new projects. Variations in project schedules or unanticipated changes in project schedules, in particular, in connection with large construction and installation projects, can create fluctuations in revenue, which may adversely affect us in a given ~~period,~~quarter, even if not ~~in total.~~for the full year. In addition, revenue from master service and other service agreements, while generally predictable, can be subject to volatility. The financial condition of our customers and their access to capital; variations in project margins; regional, national and global economic, political and market conditions; regulatory or environmental influences; and acquisitions, dispositions or strategic investments/other arrangements can also materially affect quarterly results in a given period. Accordingly, our operating results in any particular period may not be indicative of the results that can be expected for any other period. The effects of the COVID-19 pandemic could also result in greater seasonal and cyclical volatility than would otherwise exist under normal conditions.

Critical Accounting Estimates

This discussion and analysis of our financial condition and results of operations is based upon our ~~condensed unaudited~~ consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of our consolidated financial statements requires the use of estimates and assumptions that affect the amounts reported in our ~~condensed unaudited~~ consolidated financial statements and the accompanying notes.

We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, including the ~~results~~potential effects of ~~which~~the COVID-19 pandemic, climate change, and other relevant global and/or macroeconomic trends and events. These estimates form the basis offor making judgments about our operating results, including the results of ~~percentage-of-completion projects,~~construction contracts accounted for under the cost-to-cost method, and the carrying values of assets and liabilities, that are not readily apparent from other sources. Given that management estimates, by their nature, involve judgments regarding future uncertainties, actual results ~~may~~could differ materially from these estimates if conditions change or if certain key assumptions used in making these estimates ultimately prove to be inaccurate. Our accounting policies and critical accounting estimates are reviewed periodically by the Audit Committee of the Board of Directors. Refer to Note 1 - Business, Basis of Presentation and Significant Accounting Policies in the notes to our condensed unaudited consolidated financial statements, which is incorporated by reference, and to our ~~2016~~ Form 10-K for discussion of our significant accounting policies. During the third quarter of 2017, we performed a quantitative assessment of the goodwill and an indefinite-lived pre-qualification intangible asset associated with certain of our operating segments in conjunction with our quarterly review of reporting units for indicators of impairment. Based on the results of these assessments, we determined that the estimated fair value of our Electrical Transmission operating segment exceeded its carrying value by approximately 10%, and that the fair values of two of our reporting units and the indefinite-lived pre-qualification intangible asset in our Oil and Gas segment, for which the carrying values totaled approximately $130 million, exceeded their carrying values by approximately 10% for each. Significant changes in assumptions or estimates, such as a reduction in profitability and/or cash flows, could result in non-cash goodwill and indefinite-lived intangible asset impairment charges in the future.

We believe that our accounting estimates pertaining to: the recognition of revenue ~~recognition for percentage-of-completion projects, including~~and project profit or loss, which we define as project revenue, less project costs of revenue, including project-related ~~depreciation; allowances~~depreciation, in particular, on construction contracts accounted for ~~doubtful accounts;~~under the cost-to-cost method, for which the recorded amounts require estimates of costs to complete and the amount and probability of variable consideration included in the contract transaction price; fair value estimates, including those related to ~~business~~ acquisitions, valuations of goodwill, indefinite-lived

intangible assets and ~~indefinite-lived intangible assets; estimated liabilities for future earn-out obligations; fair values of financial instruments;~~acquisition-related contingent consideration; equity investments; income taxes; self-insurance liabilities; and litigation and other contingencies, are the most critical in the preparation of our consolidated financial statements as they are important to the portrayal of our financial condition and require significant or complex judgment and estimates on the part of management. Actual results could, however, vary materially from these accounting estimates.

Refer to Note 1 - Business, Basis of Presentation and Significant Accounting Policies in the notes to the consolidated financial statements, which is incorporated by reference, and to our 2020 Form 10-K for discussion of our significant accounting policies, and refer to Note 3 - Goodwill and Other Intangible Assets in the notes to the consolidated financial statements, which is incorporated by reference, for details of our first quarter 2021 quarterly review of goodwill and indefinite-lived intangible assets for indicators of impairment.

Results of Operations

Comparison of Quarterly Results

The following table, which may contain slight summation differences due to rounding, reflects our consolidated results of operations in dollar and percentage of revenue terms for the periods indicated (dollar amounts in millions). Our consolidated results of operations are not necessarily comparable from period to period due to the ~~impact~~effect of recent acquisitions and certain other items, which are described in the comparison of results section below. In this discussion, “acquisition” results are defined as results from acquired businesses for the first twelve months following the dates of the respective acquisitions, with the balance of results for a particular item attributed to “organic” activity.


	For the Three Months Ended March 31,
	2021				2020
Revenue	$	1,775.4	100.0	%	$	1,416.6	100.0	%
Costs of revenue, excluding depreciation and amortization	1,513.9		85.3	%	1,226.3		86.6	%
Depreciation	79.3		4.5	%	53.1		3.7	%
Amortization of intangible assets	11.2		0.6	%	7.4		0.5	%
General and administrative expenses	73.1		4.1	%	85.5		6.0	%
Interest expense, net	12.5		0.7	%	17.0		1.2	%
Equity in earnings of unconsolidated affiliates	(7.3)		(0.4)	%	(7.8)		(0.6)	%

Other income, net	(2.6)		(0.1)	%	(1.3)		(0.1)	%
Income before income taxes	$	95.4	5.4	%	$	36.5	2.6	%
Provision for income taxes	(29.3)		(1.7)	%	(0.4)		(0.0)	%
Net income	$	66.1	3.7	%	$	36.1	2.5	%
Net income (loss) attributable to non-controlling interests	0.5		0.0	%	(0.2)		(0.0)	%
Net income attributable to MasTec, Inc.	$	65.6	3.7	%	$	36.2	2.6	%

For the Three Months Ended
September 30

For the Nine Months Ended
September 30
2017 2016 2017 2016
Revenue $ 1,955.8
100.0 % $ 1,586.2
100.0 % $ 5,004.1
100.0 % $ 3,792.8
100.0 %
Costs of revenue, excluding depreciation and amortization 1,726.2
88.3 % 1,369.0
86.3 % 4,323.6
86.4 % 3,321.6
87.6 %
Depreciation and amortization 50.1
2.6 % 42.6
2.7 % 138.4
2.8 % 122.2
3.2 %
General and administrative expenses 66.4
3.4 % 67.1
4.2 % 202.0
4.0 % 195.0
5.1 %
Interest expense, net 17.6
0.9 % 13.1
0.8 % 45.0
0.9 % 37.9
1.0 %
Equity in earnings of unconsolidated affiliates (7.4 ) (0.4 )% —
— % (15.1 ) (0.3 )% (3.5 ) (0.1 )%
Other income, net (4.7 ) (0.2 )% (1.0 ) (0.1 )% (4.1 ) (0.1 )% (12.8 ) (0.3 )%
Income before income taxes $ 107.6
5.5 % $ 95.3
6.0 % $ 314.3
�� 6.3 % $ 132.4
3.5 %
Provision for income taxes (43.4 ) (2.2 )% (38.8 ) (2.4 )% (126.2 ) (2.5 )% (54.3 ) (1.4 )%
Net income $ 64.2
3.3 % $ 56.5
3.6 % $ 188.2
3.8 % $ 78.1
2.1 %
Net income attributable to non-controlling interests 0.4
0.0 % 0.3
0.0 % 1.8
0.0 % 0.4
0.0 %
Net income attributable to MasTec, Inc. $ 63.8
3.3 % $ 56.3
3.5 % $ 186.4
3.7 % $ 77.7
2.0 %

We review our operating results by reportable segment. See Note 13 - Segments and Related Information in the notes to the ~~condensed unaudited~~ consolidated financial statements, which is incorporated by reference. Our reportable segments are: (1) Communications; (2) Clean Energy and Infrastructure; (3) Oil and Gas; ~~(3)~~(4) Electrical Transmission; ~~(4) Power Generation and Industrial~~ and (5) Other. Management’s review of reportable segment results includes analyses of trends in revenue, EBITDA and EBITDA margin. ~~We calculate~~ EBITDA for segment reporting purposes ~~consistent~~is calculated consistently with our consolidated EBITDA calculation. See the discussion of our non-U.S. GAAP financial measures, including certain adjusted non-U.S. GAAP measures, as described, following the comparison of results discussion below. The following table presents revenue, EBITDA and EBITDA margin by reportable segment for the periods indicated (dollar amounts in millions):

The following discussion and analysis of our results of operations should be read in conjunction with our condensed unaudited consolidated financial statements and notes thereto in Item 1 of this Quarterly Report on Form 10-Q (this “Form 10-Q”).NM - Percentage is not meaningful

Three Months Ended ~~September 30, 2017~~March 31, 2021 Compared to Three Months Ended ~~September 30, 2016~~March 31, 2020

Revenue. For the three month period ended ~~September 30, 2017,~~March 31, 2021, consolidated revenue ~~increased to $1,956~~totaled $1,775 million ~~from $1,586~~as compared with $1,417 million for the same period in 2020, an increase of ~~$370~~$359 million, or ~~23%~~25%. Revenue increases in our Oil and Gas segment of $366 million, or 102%, our Clean Energy and Infrastructure segment of $64 million, or 22%, and in our Electrical Transmission segment of $5 million, or 4%, were partially offset by a decrease in revenue in our Communications segment of $76 million, or 12%. Acquisitions contributed $87 million of revenue for the three month period ended March 31, 2021, and organic revenue increased by approximately $272 million, or 19%, as compared with the same period in 2016, driven largely by our Oil and Gas segment, for which revenue increased by $425 million, or 58%, offset, in part by lower revenue in our Power Generation and Industrial, Electrical Transmission and Communications segments, of $61 million in total, or 7%. Organic revenue increased by approximately $308 million, or 19%, and acquisitions contributed $62 million in revenue.2020.

Communications Segment. Communications revenue was ~~$610~~$569 million for the three month period ended ~~September 30, 2017,~~March 31, 2021, as compared with ~~$624~~$644 million for the same period in ~~2016,~~2020, a decrease of ~~$14~~$76 million, or 2%12%. Acquisitions contributed ~~$38~~$32 million of revenue ~~which was offset by a decrease in~~for the three month period ended March 31, 2021, and organic revenue ~~of $51~~decreased by approximately $108 million, or ~~8%.~~17%, as compared with the same period in 2020. The decrease in organic revenue was primarily driven by a lower levels of ~~install-to-the-home~~wireless services, including from the effects of the COVID-19 pandemic and ~~customer fulfillment revenue~~temporary project timing delays related to recently completed 5G spectrum auctions, for which deployment is expected to begin in ~~2017, as previously disclosed.~~the latter part of 2021.

~~Oil~~Clean Energy and ~~Gas~~Infrastructure Segment. ~~Oil~~Clean Energy and ~~Gas~~Infrastructure revenue was $1,161 million for three month period ended September 30, 2017, as compared with $736 million for the same period in 2016, an increase of $425 million, or 58%. The increase in Oil and Gas revenue was driven primarily by an increase in multiple large long-haul pipeline construction projects.

~~Electrical Transmission Segment~~. ~~Electrical Transmission revenue was $82~~$350 million for the three month period ended ~~September 30, 2017,~~March 31, 2021 as compared with ~~$102~~$286 million for the same period in ~~2016, a decrease~~2020, an increase of ~~$20~~$64 million, or ~~20%~~22%. For the three month period ended March 31, 2021, acquisitions contributed $49 million and organic revenue increased by $15 million, or 5%, ~~driven~~as compared with the same period in 2020, due to higher levels of project activity.

Oil and Gas Segment. Oil and Gas revenue was $726 million for three month period ended March 31, 2021, as compared with $359 million for the same period in 2020, an increase of $366 million, or 102%. The expected increase was primarily bydue to higher levels of large diameter project activity, which initiated during the quarter and ~~timing.~~will continue throughout the balance of the year, partially offset by the effects of timing of other projects. For the three month period ended March 31, 2021, acquisitions contributed $5 million and organic revenue increased by $361 million, or 101%, as compared with the same period in 2020.

~~Power Generation and Industrial~~Electrical Transmission Segment. ~~Power Generation and Industrial~~Electrical Transmission revenue was ~~$97~~$134 million for the three month period ended ~~September 30, 2017,~~March 31, 2021 as compared with ~~$124~~$128 million for the same period in 2016, a decrease of $27 million, or 22%. Acquisitions contributed $25 million of revenue, which was offset by a decrease in organic revenue of $51 million, or 42%. The decrease in organic revenue was driven primarily by lower levels of renewable power project activity and timing.

~~Other Segment~~. ~~Other segment revenue totaled $11 million for the three month period ended September 30, 2017, as compared with $8 million for the same period in 2016,~~2020, an increase of ~~approximately $3~~$5 million, or ~~40%~~4%, ~~driven primarily by increased~~due to higher levels of ~~activity from our oil and gas operations in Mexico, offset by a decrease in revenue from a proportionately consolidated non-controlled Canadian joint venture.~~project activity.

Costs of revenue, excluding depreciation and amortization. Costs of revenue, excluding depreciation and amortization, increased by ~~$357~~approximately $288 million, or ~~26%~~23%, to ~~$1,726~~$1,514 million for the three month period ended ~~September 30, 2017, as compared with $1,369~~March 31, 2021 from $1,226 million for the same period in ~~2016.~~2020. Higher levels of revenue contributed ~~$319 million of~~ an increase of $311 million in costs of revenue, excluding depreciation and amortization, ~~whereas decreased~~and improved productivity ~~resulted in an increase~~contributed a decrease of approximately ~~$38~~$23 million. Costs of revenue, excluding depreciation and amortization, as a percentage of revenue ~~increased~~decreased by approximately ~~200~~130 basis points, from ~~86.3%~~86.6% of revenue for the three month period ended ~~September 30, 2016~~March 31, 2020 to ~~88.3%~~85.3% of revenue for the same period in ~~2017. The basis point increase was driven by reduced~~2021, including from the effects of project efficiencies, close-outs and mix in certain of our ~~Oil and Gas segment, offset, in part, by improved project efficiencies and mix in our Communications, Electrical Transmission and Power Generation and Industrial~~ segments. Additionally, costs of revenue, excluding depreciation and amortization, improved in our Other segment for the three month period ended September 30, 2017 as compared with the same period in 2016 due to a reduction in project losses on a proportionately consolidated non-controlled Canadian joint venture, which totaled $0.4 million for the three month period ended September 30, 2017 as compared with $5 million in the prior year period. This project, which is managed by a third party and for which we have minimal direct construction involvement, has experienced delays, which has extended the timeline and resulted in project losses.

Depreciation.Depreciation ~~and amortization.~~ ~~Depreciation and amortization~~ was ~~$50~~$79 million, or ~~2.6%~~4.5% of revenue, for the three month period ended ~~September 30, 2017~~March 31, 2021, as compared with ~~$43~~$53 million, or ~~2.7%~~3.7% of revenue, for the same period in ~~2016,~~2020, an increase of $8$26 million, or ~~18%~~49%. Acquisitions contributed $4$2 million of ~~incremental~~ depreciation ~~and amortization~~ for the three month period ended ~~September 30, 2017 as compared with~~March 31, 2021, and organic depreciation increased by $24 million, or 45%, due to the ~~same period~~impact of prior year capital investments, including to support expected increased levels of large diameter pipeline project activity in ~~2016.~~2021. As a percentage of revenue, depreciation ~~and amortization decreased slightly due primarily to higher levels~~increased by approximately 70 basis points.

Amortization of ~~revenue.~~

~~General and administrative expenses~~. ~~General and administrative expenses were $66~~intangible assets. Amortization of intangible assets was $11 million, or ~~3.4%~~0.6% of revenue, for the three month period ended ~~September 30, 2017,~~March 31, 2021, as compared with ~~$67~~$7 million, or ~~4.2%~~0.5% of revenue, for the same period in ~~2016,~~2020, an increase of approximately $4 million, or 52%, primarily related to acquisitions. As a percentage of revenue, amortization of intangible assets increased by approximately 10 basis points.

General and administrative expenses. General and administrative expenses were $73 million, or 4.1% of revenue, for the three month period ended March 31, 2021, as compared with $86 million, or 6.0% of revenue, for the same period in 2020, a decrease of $1$12 million, or 1%15%. Acquisitions contributed $6$4 million of ~~incremental~~ general and administrative expenses for the three month period ended ~~September 30, 2017, whereas~~March 31, 2021. Excluding the effects of acquisitions, general and administrative expenses for the three month period ended March 31, 2021 decreased by $16 million, or approximately 19%, as compared with the same period in the prior year, ~~period included certain restructuring charges~~primarily due to a recovery of ~~approximately $5 million related to our efforts to streamline our western Canadian oil~~provisions for credit losses and ~~gas~~reductions in compensation,

travel and ~~our electrical transmission operations, which efforts were substantially completed~~professional fee expense, offset, in ~~2016. Excluding~~part, by the effects of ~~the above mentioned items,~~legal and settlement matter timing and stock-based compensation expense. Overall, general and administrative expenses as a percentage of revenue decreased by $2approximately 190 basis points for the three month period ended March 31, 2021 as compared with the same period in 2020, due, in part, to higher levels of revenue.

Interest expense, net. Interest expense, net of interest income, was approximately $12 million, or approximately 0.7% of revenue, for the three month period ended March 31, 2021, as compared with $17 million, or 1.2% of revenue, for the same period in 2020. The decrease in interest expense, net, related primarily to a reduction in interest expense from credit facility activity as well as a decrease in discount charges on financing arrangements for trade receivables. Interest expense from credit facility activity decreased by approximately $4 million as compared with the same period in the prior year due ~~primarily~~ to ~~the timing~~a combination of ~~legal matters~~lower average balances and other settlements. Overall, general and administrative expenses as a percentage of revenue decreased by 80 basis points for the three month period ended September 30, 2017 as compared with the same period in the prior year, due primarily to improvements in overhead cost utilization from higher levels of revenue.

~~Interest expense, net.~~ ~~Interest expense, net of~~lower interest ~~income, was $18 million, or 0.9% of revenue, for the three month period ended September 30, 2017 as compared with $13 million, or 0.8% of revenue, in 2016.~~rates. The ~~increase~~reduction in interest expense ~~was primarily due to higher levels of financing costs, including discount charges~~ on credit facility activity and financing arrangements ~~as well as~~was offset, in part, by an increase in interest expense on senior notes. In August 2020, we issued $600 million aggregate principal amount of 4.50% Senior Notes and redeemed $400 million aggregate principal amount of our ~~Credit Facility in the third quarter of 2017 as compared with 2016.~~4.875% Senior Notes.

Equity in earnings of unconsolidated affiliates. Equity in earnings or losses of unconsolidated affiliates includes our share of income or losses from equity investees. For the three month ~~period~~periods ended ~~September 30, 2017,~~March 31, 2021 and 2020, equity in earnings from unconsolidated affiliates ~~was~~totaled approximately $7 million and $8 million, respectively, and related primarily to our investments in the Waha JVs, ~~which commenced operations~~and, to a lesser extent, to investments in ~~2017.~~certain telecommunications entities.

Other income, net. Other income, net, consists primarily of gains or losses from sales of, or changes in estimated recoveries from, assets and investments ~~certain legal/other settlements,~~and gains or losses from changes to estimated earn-out ~~accruals, and certain restructuring charges related to losses on disposal of excess fixed assets. For the three month period ended September 30, 2017, other~~accruals. Other income, net, was ~~$5 million, as compared with $1 million for the same period in the prior year. Other income, net, for the three month period ended September 30, 2017 included approximately~~ $3 million of income from changes to estimated earn-out accruals. Gains on sales of equipment, net, totaled $2 million and $1 million for the three month periods ended September 30, 2017 and 2016, respectively.

~~Provision for income taxes.~~ ~~Income tax expense was $43~~ million for the three month period ended ~~September 30, 2017~~March 31, 2021, as compared with ~~$39~~$1 million of other income, net, for the same period in 2020. For the three month period ended March 31, 2021, other income, net, included approximately $2 million of gains on sales of equipment, net, and $1 million, net, of expense from certain investments and strategic arrangements, offset by other income, including from certain asset recoveries. For the three month period ended March 31, 2020, other income, net, included approximately $2 million of gains on sales of equipment, net, offset, in part, by approximately $2 million of expense from changes to estimated earn-out accruals, net.

Provision for income taxes. Income tax expense was $29 million for the three month period ended March 31, 2021. Income tax expense for the three month period ended March 31, 2020 was de minimis. Pre-tax income increased to $95 million for the three month period ended March 31, 2021 as compared with $36 million for the same period in 2020. For the ~~prior year. In the third quarter of 2017, we had pre-tax income of $108 million as compared with $95 million~~three month period ended March 31, 2021, our effective tax rate increased to 30.7% from 1.2% for the same period in ~~the prior year.~~2020. Our effective tax rate ~~for~~in the ~~three month period ended September 30, 2017 decreased versus the same period in 2016, primarily due to tax credits that were recognized during the third~~first quarter of ~~2017, offset by~~2021 included the effect of ~~losses~~$2.3 million related to non-deductible share-based compensation, whereas in ~~foreign jurisdictions.~~the first quarter of 2020, our effective tax rate included a benefit of approximately $10 million related to the release of certain valuation allowances on Canadian deferred tax assets that were no longer necessary.

Analysis of EBITDA by Segment

Communications Segment. EBITDA for our Communications segment was ~~$65~~$49 million, or ~~10.7%~~8.6% of revenue, for the three month period ended ~~September 30, 2017,~~March 31, 2021, as compared with ~~$63~~$51 million, or ~~10.1%~~7.9% of revenue, for the same period in ~~2016,~~2020, a decrease of $2 million, or approximately 4%. Lower levels of revenue contributed to a decrease in EBITDA of $6 million. As a percentage of revenue, EBITDA increased by approximately 70 basis points, or approximately $4 million, due primarily to improved project efficiencies and mix.

Clean Energy and Infrastructure Segment. EBITDA for our Clean Energy and Infrastructure segment was $11 million, or 3.1% of revenue, for the three month period ended March 31, 2021, as compared with EBITDA of $5 million, or 1.7% of revenue, for the same period in 2020, an increase in EBITDA of approximately $3$6 million, or 4%119%. ~~The~~Higher levels of revenue contributed an increase ~~was primarily~~in EBITDA of approximately $1 million. As a percentage of revenue, EBITDA increased by approximately 140 basis points, or $5 million, due to ~~production efficiencies.~~improved project efficiencies, close-outs and mix.

Oil and Gas Segment. EBITDA for our Oil and Gas segment was ~~$108~~$168 million, or ~~9.3%~~23.1% of revenue, for the three month period ended ~~September 30, 2017,~~March 31, 2021, as compared with ~~$118~~$74 million, or ~~16.0%~~20.7% of revenue, for the same period in ~~2016, a decrease in EBITDA~~2020, an increase of ~~$10~~$93 million, or ~~approximately 8%~~125%. Higher levels of revenue contributed an increase in EBITDA of ~~$68~~$76 million, ~~which was offset by a decrease~~and improved productivity contributed an increase in EBITDA ~~from lower~~of approximately $17 million. EBITDA margins increased by approximately 240 basis points due primarily to ~~reduced~~improved project efficiencies, close-outs and mix.

Electrical Transmission Segment. EBITDA for our Electrical Transmission segment was $5$4 million, or ~~5.5%~~2.7% of revenue, for the three month period ended ~~September 30, 2017,~~March 31, 2021, as compared with EBITDA of ~~negative~~ $8 million, or ~~negative 8.1%~~6.5% of revenue, for the same period in ~~2016, for an improvement~~2020, a decrease in EBITDA of ~~$13 million. The improvement in Electrical Transmission EBITDA was~~approximately $5 million, or 57%, due primarily to a combination of project efficiencies and mix, the non-recurrence of approximately $4 million of restructuring charges for the three month period ended September 30, 2016, and improved cost and overhead utilization.

~~Power Generation and Industrial Segment.~~ EBITDA for our Power Generation and Industrial segment was $9 million, or 9.6% of revenue, for the three month period ended September 30, 2017, as compared with EBITDA of $6 million, or 4.9% of revenue, for the same period in 2016, an improvement in EBITDA of $3 million, or 52%.reduced productivity. As a percentage of revenue, ~~segment~~ EBITDA ~~improved~~decreased by approximately ~~470~~380 basis points, ~~as compared with the same period in the prior year~~ due primarily to ~~improved~~reduced project efficiencies, close-outs and ~~mix, offset, in part, by reduced cost and overhead utilization due to lower revenue.~~mix.

Other Segment. EBITDA from Other businesses was ~~$10~~approximately $7 million for both the three month periods ended March 31, 2021 and 2020, and related primarily to equity in earnings from our investments in the Waha JVs.

Corporate. Corporate EBITDA was negative $40 million for the three month period ended ~~September 30, 2017,~~March 31, 2021, as compared with EBITDA of negative $3$32 million for the same period in ~~2016, an improvement of $13 million. Other segment EBITDA~~2020, for the three month period ended September 30, 2017 included $7 million of equity in earnings from unconsolidated affiliates related to our investments in the Waha JVs, which commenced operations in the first half of 2017, and, for the three month periods ended September 30, 2017 and 2016, included losses of $0.4 million and $5 million, respectively, on a ~~proportionately consolidated non-controlled Canadian joint venture. The remaining improvement in Other segment EBITDA was driven by an increase in EBITDA from our oil and gas operations in Mexico.~~

~~Corporate.~~ ~~Corporate EBITDA was negative $22 million for the three month period ended September 30, 2017, as compared with EBITDA of negative $24 million for the same period in 2016, for an increase~~decrease in EBITDA of $2approximately $8 million. Corporate EBITDA for the three month period ended ~~September 30, 2017~~March 31, 2021 included approximately $3$1 million of ~~income~~expense, net, from certain investments and strategic arrangements, whereas for the same period in 2020, Corporate EBITDA included approximately $2 million of expense related to changes toin estimated earn-out ~~accruals. For~~accruals, net. Excluding the effects of these items, other corporate expenses for the three month period ended ~~September 30, 2017, other corporate expenses increased as compared with the prior year period primarily as a result of costs related to the timing of legal matters and other settlements.~~

~~Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016~~

~~Revenue~~. For the nine month period ended September 30, 2017, consolidated revenue increased to $5,004 million from $3,793 million, an increase of $1,211 million, or 32%, as compared with the same period in 2016. Oil and Gas revenue increased by $1,303 million, or 90%, Communications revenue increased by $34 million, or 2%, whereas Power Generation and Industrial revenue decreased by $121 million, or 37%, Electrical Transmission revenue decreased by $6 million, or 2%, and Other segment revenue decreased by $1 million, or 4%. Organic revenueMarch 31, 2021 increased by approximately ~~$1,115~~$9 million ~~or 29%, and acquisitions contributed $96 million in revenue.~~

~~Communications Segment~~. Communications revenue was $1,762 million for the nine month period ended September 30, 2017, as compared with $1,728 million for the same period in 2016, an increase of $34 million, or 2%. Acquisitions contributed $71 million of revenue, which was offset by a decrease in organic revenue of $37 million. The decrease in organic revenue was primarily driven by lower levels of install-to-the-home and customer fulfillment revenue in 2017, as previously disclosed.

~~Oil and Gas Segment~~. Oil and Gas revenue was $2,757 million for nine month period ended September 30, 2017, as compared with $1,454 million for the same period in 2016, an increase of $1,303 million, or 90%. The increase in Oil and Gas revenue was driven primarily by an increase in multiple large long-haul pipeline construction projects.

~~Electrical Transmission Segment~~. Electrical Transmission revenue was $277 million for the nine month period ended September 30, 2017, as compared with $284 million for the same period in 2016, a decrease of $6 million, or 2%, due primarily to project activity and timing.

~~Power Generation and Industrial Segment~~. Power Generation and Industrial revenue was $204 million for the nine month period ended September 30, 2017, as compared with $325 million for the same period in 2016, a decrease of $121 million, or 37%. Acquisitions contributed $25 million of revenue, which was offset by a decrease in organic revenue of $145 million. The decrease in organic revenue was driven primarily by lower levels of renewable power project activity and timing.

~~Other Segment~~. Other segment revenue totaled $14 million for the nine month period ended September 30, 2017, as compared with $15 million for the same period in 2016, a decrease of approximately $1 million, or 4%, driven by a reduction in revenue from a proportionately consolidated non-controlled Canadian joint venture, offset, in part, by increased levels of activity from our oil and gas operations in Mexico.

~~Costs of revenue, excluding depreciation and amortization.~~ Costs of revenue, excluding depreciation and amortization increased by approximately $1,002 million, or 30%, to $4,324 million for the nine month period ended September 30, 2017, as compared with $3,322 million for the same period in 2016. Higher revenue contributed $1,061 million of an increase in costs of revenue, excluding depreciation and amortization, whereas improved productivity resulted in a decrease of approximately $59 million. Costs of revenue, excluding depreciation and amortization, as a percentage of revenue decreased by approximately 120 basis points, from 87.6% of revenue for the nine month period ended September 30, 2016 to 86.4% of revenue for the same period in 2017. This basis point improvement was driven primarily by our Electrical Transmission and Power Generation and Industrial segments, which benefited from improved project efficiencies, close-outs and mix, as well as the non-recurrence of certain first quarter 2016 project losses. These improvements were offset, in part, by reduced project efficiencies and mix in our Oil and Gas and Communications segments. Additionally, project losses on a proportionately consolidated non-controlled Canadian joint venture in our Other segment totaled $7 million for the nine month period ended September 30, 2017 as compared with $5 million for the same period in the prior year.

~~Depreciation and amortization.~~ Depreciation and amortization was $138 million, or 2.8% of revenue, for the nine month period ended September 30, 2017 as compared with $122 million, or 3.2% of revenue, in 2016, an increase of $16 million, or 13%. Acquisitions contributed $6 million of incremental depreciation and amortization for the nine month period ended September 30, 2017 as compared with the same period in 2016. As a percentage of revenue, depreciation and amortization decreased by approximately 50 basis points, due primarily to higher levels of revenue.

~~General and administrative expenses~~. General and administrative expenses were $202 million, or 4.0% of revenue, for the nine month period ended September 30, 2017, as compared with $195 million, or 5.1% of revenue, for the same period in 2016, an increase of $7 million, or 4%. Acquisitions contributed $10 million of incremental general and administrative expenses for the nine month period ended September 30, 2017, whereas general and administrative expenses for the same period in the prior year included certain restructuring charges of approximately $11 million related to our efforts to streamline our western Canadian oil and gas and our electrical transmission operations, which efforts were substantially completed in 2016. Excluding the effects of the above mentioned items, various administrative expenses increased by approximately $8 million for the nine month period ended September 30, 2017, driven primarily by costs related to the timing of legal matters and other settlements as well as costs associated with growth initiatives. Overall, for the nine month period ended September 30, 2017, general and administrative expenses as a percentage of revenue improved 110 basis points as compared with the same period in the prior year, due primarily to ~~improvements in overhead cost utilization from higher levels~~the effects of ~~revenue.~~

~~Interest expense, net.~~ Interest expense, net of interest income, was $45 million, or 0.9% of revenue, for the nine month period ended September 30, 2017 as compared with $38 million, or 1.0% of revenue, in 2016. The increase was primarily due to higher levels of financing costs, including discount charges on financing arrangements, as well as an increase in interest expense on our Credit Facility for the nine month period ended September 30, 2017 as compared with the same period in 2016.

~~Equity in earnings of unconsolidated affiliates.~~ Equity in earnings or losses of unconsolidated affiliates includes our share of income or losses from equity investees. For the nine month period ended September 30, 2017, equity in earnings from unconsolidated affiliates was $15 million, and related primarily to our investments in the Waha JVs, which commenced operations in 2017. Equity in earnings from unconsolidated affiliates for the nine month period ended September 30, 2016 was approximately $4 million and related to expected recoveries from our interests in certain pre-acquisition equity method investments of Pacer, of which the remaining investment as of September 30, 2017 is in the final stages of liquidation and is being managed by a receiver.

~~Other income, net.~~ Other income, net, consists primarily of gains or losses from sales of, or changes in estimated recoveries from, assets and investments, certain legal/other settlements, gains or losses from changes to estimated earn-out accruals, and certain restructuring charges related to losses on disposal of excess fixed assets. For the nine month period ended September 30, 2017, other income, net, was $4 million. Other income, net, for the nine month period ended September 30, 2017 included $12 million of expenses related to changes in expected recovery amounts for an investment that is in the final stages of liquidation, as well as reduced recovery expectations on a long-term note receivable due to recent bankruptcy proceedings for a former customer, offset by $12 million of income from changes to estimated earn-out accruals. Other income, net, for the nine month period ended September 30, 2016 totaled $13 million, and included approximately $10 million related to a settlement in connection with a previously acquired business, $3 million of restructuring charges related to estimated losses on the planned disposal of fixed assets held-for-sale and $3 million of income from changes to estimated earn-out accruals. Gains on sales of equipment, net, totaled approximately $4 million and $3 million for the nine month periods ended September 30, 2017 and 2016, respectively.

~~Provision for income taxes.~~ Income tax expense was $126 million for the nine month period ended September 30, 2017 as compared with $54 million for the same period in the prior year. For the nine month period ended September 30, 2017, we had pre-tax income of $314 million as compared with $132 million for the same period in the prior year. Our effective tax rate for the nine month period ended September 30, 2017 decreased versus the same period in 2016, primarily due to tax credits that were recognized during the third quarter of 2017, offset by the effect of losses in foreign jurisdictions.

~~Analysis of EBITDA by Segment~~

~~Communications Segment.~~ EBITDA for our Communications segment was $173 million, or 9.8% of revenue, for the nine month period ended September 30, 2017, as compared with $191 million, or 11.0% of revenue, for the same period in 2016, a decrease of approximately $18 million, or 9%. This decrease was primarily due to: (i) the non-recurrence of a first quarter 2016 gain from a settlement in connection with a previously acquired business; (ii) production inefficiencies; (iii) certain other expense reduction efforts, as well as timing of legal and settlement matters and ~~other settlements; (iv) offset, in part, by a benefit from higher revenue.~~

~~Oil and Gas Segment.~~ EBITDA for our Oil and Gas segment was $356 million, or 12.9% of revenue, for the nine month period ended September 30, 2017, as compared with $188 million, or 12.9% of revenue, for the same period in 2016, an increase of $168 million, or approximately 90%, driven primarily by higher revenue. As a percentage of revenue, segment EBITDA was flat for the nine month periods ended September 30, 2017 as compared with the same period in 2016. The effect of reduced project efficiencies and mix for the nine month period ended September 30, 2017 was partially offset by the non-recurrence of a first quarter 2016 project loss of approximately $13 million on a western Canadian oil and gas project and the non-recurrence of approximately $7 million of 2016 restructuring charges related to efforts to streamline our western Canadian oil and gas operations.

~~Electrical Transmission Segment.~~ EBITDA for our Electrical Transmission segment was $11 million, or 4.0% of revenue, for the nine month period ended September 30, 2017, as compared with EBITDA of negative $42 million, or negative 14.8% of revenue, for the same period in 2016, an increase in EBITDA of $53 million. The improvement in Electrical Transmission EBITDA was due to a combination of project efficiencies and mix, improved cost and overhead utilization due to higher levels of revenue, the non-recurrence of a first quarter 2016 project loss of approximately $15 million on a large transmission project, and the non-recurrence of approximately $7 million of 2016 restructuring charges related to efforts to streamline our operations.

~~Power Generation and Industrial Segment.~~ ~~EBITDA for our Power Generation and Industrial segment was $15 million, or 7.3% of revenue, for the nine month period ended September 30, 2017, as compared with EBITDA of $14 million, or~~ 4.3% of revenue, for the same period in 2016, an increase in EBITDA of $1 million, or 7% As a percentage of revenue, segment EBITDA improved by approximately 300 basis points for the nine month period ended September 30, 2017 as compared with the same period in the prior year due to improved project efficiencies and mix, offset, in part, by reduced cost and overhead utilization due to lower revenue.

~~Other Segment.~~ EBITDA from Other businesses was approximately $12 million for the nine month period ended September 30, 2017, as compared with EBITDA of negative $3 million for the same period in 2016, an increase in EBITDA of $14 million. Other segment EBITDA for the nine month period ended September 30, 2017 included $15 million of equity in earnings from unconsolidated affiliates related to our investments in the Waha JVs, which commenced operations in the first half of 2017. For the nine month periods ended September 30, 2017 and 2016, Other segment EBITDA included losses of $7 million and $5 million, respectively, on a proportionately consolidated non-controlled Canadian joint venture. The remaining improvement in Other segment EBITDA was driven by an increase in EBITDA from our oil and gas operations in Mexico.

~~Corporate.~~ Corporate EBITDA was negative $69 million for the nine month period ended September 30, 2017, as compared with EBITDA of negative $55 million for the same period in 2016, for a decrease in EBITDA of $14 million. Corporate EBITDA for the nine month period ended September 30, 2017 included approximately $12 million of expenses related to changes in expected recovery amounts for an investment that is in the final stages of liquidation, as well as reduced recovery expectations on a long-term note receivable due to recent bankruptcy proceedings for a former customer, offset by approximately $12 million of income from changes to estimated earn-out accruals. For the nine month period ended September 30, 2017, other corporate expenses increased as compared with the same period in the prior year, due primarily to costs related to the timing of legal matters and other settlements, as well as costs associated with growth initiatives, including incentive andstock-based compensation expense.

Our foreign operations are primarily in ~~Canada.~~Canada and, to a lesser extent, in Mexico, the Caribbean and India. See Note 13 - Segments and Related Information in the notes to the ~~condensed unaudited~~ consolidated financial statements, which is incorporated by reference.

Non-U.S. GAAP Financial Measures

As appropriate, we supplement our reported U.S. GAAP financial information with certain non-U.S. GAAP financial measures, including earnings before interest, income taxes, depreciation and amortization (“EBITDA”)~~. In addition, we have presented “Adjusted~~, adjusted EBITDA~~” as well as~~ (“Adjusted EBITDA”), adjusted net income (“Adjusted Net Income”) and adjusted diluted earnings per share (“Adjusted Diluted Earnings Per Share”). ~~The~~These “adjusted” non-U.S. GAAP measures exclude, as applicable to the particular periods, non-cash stock-based compensation expense certain restructuring charges, project results, which for the periods presented, were losses, from a proportionately consolidated non-controlled Canadian joint venture that was underway when we acquired Pacer in 2014, and whose sole activity involves the construction of a bridge, a business in which we do not otherwise engage, is managed by a third party, and for which we have minimal direct construction involvement and automatically terminates upon completion of the project, and charges or recoveries from multi-employer pension plan withdrawals, and, for Adjusted Net Income and Adjusted Diluted Earnings Per Share, amortization of intangible assets and the tax effects of the adjusted items, including non-cash ~~stock based compensation. The~~stock-based compensation expense and the effects of changes in statutory tax rates. These definitions of EBITDA and Adjusted EBITDA ~~above~~ are not the same as in our Credit Facility or in the indenture governing our senior notes; therefore, EBITDA and Adjusted EBITDA as presented in this discussion should not be used for purposes of determining our compliance with the covenants contained in our debt instruments.

We use EBITDA and Adjusted EBITDA, as well as Adjusted Net Income and Adjusted Diluted Earnings Per Share to evaluate our performance, both internally and as compared with our peers, because these measures exclude certain items that may not be indicative of our core operating results, as well as items that can vary widely across different industries or among companies within the same ~~industry, and,~~industry. We believe that these adjusted measures provide a baseline for ~~non-cash~~analyzing trends in our underlying business. Non-cash stock-based compensation expense can ~~also~~ be subject to volatility from changes in the market price per share of our common stock or variations in the value and number of shares ~~granted. Additionally, these~~granted, and amortization of intangible assets is subject to acquisition activity, which varies from period to period. We exclude intangible asset amortization from our adjusted measures ~~provide a baseline for analyzing trends~~due to its non-operational nature and inherent volatility, as acquisition activity varies from period to period. We also believe this presentation is common practice in our ~~underlying business.~~industry and improves comparability of our results with those of our peers, although each company’s definitions of these adjusted measures may vary as they are not standardized and should be used in light of the provided reconciliations.

We believe that these non-U.S. GAAP financial measures provide meaningful information and help investors understand our financial results and assess our prospects for future performance. Because non-U.S. GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-U.S. GAAP financial measures having the same or similar names. These financial measures should not be considered in isolation from, as substitutes for, or alternative measures of, reported net income or diluted earnings per share, and should be viewed in conjunction with the most comparable U.S. GAAP financial measures and the provided reconciliations thereto. We believe these non-U.S. GAAP financial measures, when viewed together with our U.S. GAAP results and related reconciliations, provide a more complete understanding of our business. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.

The following table presents a reconciliation of net income to EBITDA and Adjusted EBITDA in dollar and percentage of revenue terms, for the periods ~~indicated~~indicated. The tables below (dollar amounts in millions)~~. The tables below~~ may contain slight summation differences due to rounding.

A reconciliation of EBITDA to Adjusted EBITDA and Adjusted EBITDA margin by reportable segment, for the periods indicated is as follows:


	For the Three Months Ended March 31,
	2021				2020
EBITDA	$	198.4	11.2	%	$	114.0	8.0	%
Non-cash stock-based compensation expense	5.5		0.3	%	4.0		0.3	%



Adjusted EBITDA	$	203.9	11.5	%	$	118.0	8.3	%
Reportable Segment:
Communications	$	48.9	8.6	%	$	50.8	7.9	%
Clean Energy and Infrastructure	10.9		3.1	%	5.0		1.7	%
Oil and Gas	167.6		23.1	%	74.4		20.7	%
Electrical Transmission	3.6		2.7	%	8.3		6.5	%
Other	7.4		NM		7.4		NM
Corporate	(34.5)		—		(27.9)		—
Adjusted EBITDA	$	203.9	11.5	%	$	118.0	8.3	%

For the Three Months Ended September 30 For the Nine Months Ended September 30
2017 2016 2017 2016
EBITDA $ 175.3
9.0 % $ 151.0
9.5 % $ 497.7
9.9 % $ 292.6
7.7 %
Non-cash stock-based compensation expense 3.4
0.2 % 3.9
0.2 % 10.5
0.2 % 11.3
0.3 %
Restructuring charges —
— % 4.7
0.3 % 0.6
0.0 % 13.8
0.4 %
Project results from non-controlled joint venture 0.4
0.0 % 5.1
0.3 % 7.4
0.1 % 5.1
0.1 %
Charges (recoveries) from multi-employer pension plan withdrawals 0.6
0.0 % —
— % 0.6
0.0 % —
— %
Adjusted EBITDA $ 179.6
9.2 % $ 164.8
10.4 % $ 516.7
10.3 % $ 322.8
8.5 %
Reportable Segment:
Communications $ 65.5
10.7 % $ 63.0
10.1 % $ 173.6
9.9 % $ 191.4
11.1 %
Oil and Gas 108.1
9.3 % 118.0
16.0 % 356.1
12.9 % 194.1
13.3 %
Electrical Transmission 4.5
5.5 % (3.8 ) (3.7 )% 11.8
4.3 % (34.7 ) (12.2 )%
Power Generation and Industrial 9.3
9.6 % 6.1
4.9 % 14.8
7.3 % 13.9
4.3 %
Other 10.5
98.9 % 2.1
27.2 % 19.0
133.3 % 2.6
17.2 %
Corporate (18.3 ) NA (20.6 ) NA (58.6 ) NA (44.4 ) NA
Adjusted EBITDA $ 179.6
9.2 % $ 164.8
10.4 % $ 516.7
10.3 % $ 322.8
8.5 %

~~Adjusted Net Income and Adjusted Diluted Earnings Per Share~~NM - Percentage is not meaningful

The ~~tables~~table below ~~which may contain slight summation differences due to rounding, reconcile~~reconciles reported net income and reported diluted earnings per share, the most directly comparable U.S. GAAP financial measures, to Adjusted Net Income and Adjusted Diluted Earnings Per Share.


	For the Three Months Ended March 31,
	2021				2020
	Net Income (in millions)		Diluted Earnings Per Share		Net Income (in millions)		Diluted Earnings Per Share
Reported U.S. GAAP measure	$	66.1	$	0.89	$	36.1	$	0.48
Adjustments:
Non-cash stock-based compensation expense	5.5		0.07		4.0		0.05
Amortization of intangible assets	11.2		0.15		7.4		0.10



Total adjustments, pre-tax	$	16.8	$	0.23	$	11.4	$	0.15
Income tax effect of adjustments (a)	(1.3)		(0.02)		(2.7)		(0.04)
Statutory tax rate effects (b)	0.5		0.01		—		—
Adjusted non-U.S. GAAP measure	$	82.0	$	1.10	$	44.9	$	0.60

(a) Represents the tax effect of the adjusted items that are subject to tax, including the tax effects of non-cash stock-based compensation expense, which for the three month periods ended March 31, 2021 and 2020, included net tax benefits of $0.1 million and net tax deficiencies of $0.1 million, respectively, from the vesting of share-based payment awards. Tax effects are determined based on the tax treatment of the related item, the incremental statutory tax rate of the jurisdictions pertaining to the adjustment, and their effect on pre-tax income. For the three month periods ended March 31, 2021 and 2020, our consolidated effective tax rates, as reported, were 30.7% and 1.2%, respectively, and as adjusted, were 26.9% and 6.4%, respectively.

(b) For the three month period ended March 31, 2021, includes the effect of changes in state tax rates.

For the Three Months Ended September 30
2017 2016
Net Income
(in millions) Diluted Earnings Per Share Net Income
(in millions) Diluted Earnings Per Share
Reported U.S. GAAP measure $ 64.2
$ 0.77
$ 56.5
$ 0.69
Adjustments:
Non-cash stock-based compensation expense 3.4
0.04
3.9
0.05
Restructuring charges —
—
4.7
0.06
Project results from non-controlled joint venture 0.4
0.00
5.1
0.06
Charges (recoveries) from multi-employer pension plan withdrawals 0.6
0.01
—
—
Total adjustments, pre-tax $ 4.4
$ 0.05
$ 13.7
$ 0.17
Income tax effect of adjustments ^(a)
(0.6 ) (0.01 ) (4.0 ) (0.05 )
Adjusted non-U.S. GAAP measure $ 68.0
$ 0.82
$ 66.3
$ 0.81

Income tax effect of adjustments ^(a)

Represents the tax effect of the adjusted items that are subject to tax, including the tax effects of share-based compensation expense. Tax effects are determined based on the tax treatment of the related items, the incremental statutory tax rate of the jurisdictions pertaining to each adjustment, and taking into consideration their effect on pre-tax income. For both the three and nine month periods ended September 30, 2017, our consolidated effective tax rate, as reported, was 40%, and as adjusted, was 39%. For the three and nine~~month periods ended September 30, 2016, our consolidated effective tax rate, as reported, was 41% for both, and as adjusted, was 39% and 40%, respectively.~~

Financial Condition, Liquidity and Capital Resources

Our primary sources of liquidity are cash flows from operations, availability under our Credit Facility and our cash balances. Our primary liquidity needs are for working capital, capital expenditures, insurance and performance collateral in the form of cash and letters of credit, earn-out obligations, ~~cost and~~ equity ~~investee~~investment funding requirements, debt service and income ~~taxes and share repurchase programs.~~taxes. We also evaluate opportunities for strategic acquisitions, investments and ~~investments~~other arrangements from time to time, and we may consider opportunities to borrow additional funds, which may include borrowings under our Credit Facility or debt issuances, or to ~~repurchase,~~ refinance or retire outstanding debt, or repurchase additional shares of our outstanding common stock in the future under share repurchase authorizations, any of which may require our use of cash.

Capital Expenditures. For the ~~nine~~three month period ended ~~September 30, 2017,~~March 31, 2021, we spent ~~$83~~approximately $48 million on capital expenditures, or ~~$70~~$42 million, net of asset disposals, and incurred approximately ~~$131~~$51 million of equipment purchases under ~~capital lease and other financing arrangements.~~finance leases. We estimate that we will spend approximately ~~$105~~$150 million on capital expenditures, or approximately ~~$90~~$100 million, net of asset disposals, in ~~2017,~~2021, and expect to incur approximately ~~$155~~$180 million to $200 million of equipment purchases under ~~capital lease or other financing arrangements.~~finance leases. Actual capital expenditures may increase or decrease in the future depending upon business activity levels, as well as ongoing assessments of equipment lease versus buy decisions based on short and long-term equipment requirements.

Acquisitions and ~~Acquisition-Related Contingent Consideration~~Earn-out Liabilities. We typically utilize cash for ~~our~~business acquisitions and other strategic ~~acquisitions of other businesses,~~arrangements, and for the ~~nine~~three month period ended ~~September 30, 2017,~~March 31, 2021, we used ~~$116~~$89 million of cash for this purpose. In addition, in most of our acquisitions, we have agreed to make future ~~earn-out~~ payments to the sellers ~~which~~that are contingent upon the future earnings performance of the acquired ~~businesses. Certain earn-out~~businesses, which we also refer to as “Earn-out” payments. Earn-out payments may be paid in ~~either~~ cash or, under specific circumstances, MasTec common stock, or a combination thereof, at our option. Potential future earn-out obligations are measured at their estimated fair value as of the date of acquisition, with subsequent changes in fair value recorded in earnings as a component of other income or expense. The estimated total value of ~~earn-out obligations recorded as~~future Earn-out liabilities as of ~~September 30,~~

~~2017~~March 31, 2021 was approximately ~~$105~~$135 million. Of this amount, ~~$15~~$56 million represents the liability for ~~earn-out obligations that have been earned.~~earned amounts. The remainder ~~approximately $90 million,~~ is management’s estimate of ~~potential earn-out obligations~~Earn-out liabilities that are contingent upon future performance. ~~There were no payments related to earn-out obligations for~~For the three month ~~period~~periods ended ~~September 30, 2017,~~March 31, 2021 and 2020, we made no Earn-out payments. In the second quarter of 2021, we completed the acquisition of INTREN, LLC (“INTREN”), a premier specialty utility contractor, for approximately $420 million in cash plus an Earn-out, which is contingent upon INTREN’s results for the ~~nine month period~~year ended ~~September 30, 2017, we made payments of $19 million.~~December 31, 2021. See Note 3 - Goodwill and Other Intangible Assets in the notes to the consolidated financial statements, which is incorporated by reference.

Income Taxes. For the three ~~and nine~~ month periods ended ~~September 30, 2016, we made payments of $5 million~~March 31, 2021 and ~~$20 million, respectively, related to earn-out obligations.~~

~~Income Taxes.~~ ~~Tax~~2020, tax payments, net of tax refunds, and tax refunds, net of tax payments, respectively, were ~~approximately $78 million and $15 million, respectively, for the nine month periods ended September 30, 2017 and 2016. Tax~~de minimis. Our tax payments ~~which are made quarterly,~~ vary with changes in taxable income and earnings based on estimates of full year taxable income activity and estimated tax rates.

Working Capital. We need working capital to support seasonal variations in our business, primarily due to the effect of weather conditions on external construction and maintenance work and the spending patterns of our customers, both of which influence the timing of associated spending to support related customer demand. Working capital needs are generally higher during the summer and fall months due to increased demand for our services when favorable weather conditions exist in many of the regions in which we operate. Conversely, working capital needs are typically converted to cash during the winter months. These seasonal trends, however, can be offset by changes in the timing of projects, which can be affected by project delays or accelerations and/or other factors that may affect customer spending.

Working capital requirements also tend to increase when we commence multiple projects or particularly large projects because labor, including subcontractor costs, and certain other costs, including inventory, become payable before the receivables resulting from work performed are collected. The timing of ~~billing milestones~~billings and project close-outs can contribute to changes in unbilled revenue. As of ~~September 30, 2017,~~March 31, 2021, we expect that

substantially all of our ~~CIEB~~unbilled receivables will be billed to customers in the normal course of business within the next 12twelve months. ~~Accounts~~Total accounts receivable, ~~balances,~~ which ~~consist~~consists of contract billings, ~~as well as CIEB~~unbilled receivables and retainage, ~~increased to $1.5~~net of allowance, was generally flat at approximately $1.8 billion as of ~~September 30, 2017 from $1.2 billion as of~~both March 31, 2021 and December 31, ~~2016 due to higher levels of quarterly revenue, as well as the ramp-up of various projects, primarily in our oil and gas business.~~2020.

Our payment billing terms are generally net 30 days, and some of our contracts allow our customers to retain a portion of the contract amount (generally, from 5% to 10% of billings) until the job is completed. As part of our ongoing working capital management practices, we evaluate opportunities to improve our working capital cycle time through contractual provisions and certain financing arrangements. For certain customers, we maintain inventory to meet the materials requirements of the contracts. Occasionally, certain of our customers pay us in advance for a portion of the materials we purchase for their projects or allow us to pre-bill them for materials purchases up to specified amounts. Vendor terms are generally 30 days. Our agreements with subcontractors often contain a “pay-if-paid” provision, whereby our payments to subcontractors are made only after we are paid by our customers.

Summary of Financial Condition, Liquidity and Capital Resources

WeIncluding our current assessment of the potential effects of the COVID-19 pandemic on our results of operations and capital resource requirements, we anticipate that funds generated from operations, borrowings under our Credit Facility and our cash balances will be sufficient to meet our working capital requirements, anticipated capital expenditures, debt service obligations, insurance and performance collateral requirements, letter of credit needs, earn-out obligations, required income tax payments, acquisition, strategic arrangement and ~~other~~ investment funding requirements, share repurchase activity and other liquidity needs for at least the next 12twelve months.

Sources and Uses of Cash

As of ~~September 30, 2017,~~March 31, 2021, we had ~~$746~~approximately $918 million in working capital, defined as current assets less current liabilities, as compared with ~~$562~~$944 million as of December 31, ~~2016, an increase of approximately $183 million. Total cash~~2020. Cash and cash equivalents ~~of $44~~totaled approximately $512 million and $423 million as of ~~September 30, 2017 increased by $5 million from total cash~~March 31, 2021 and ~~cash equivalents of $39 million as of~~ December 31, ~~2016.~~2020, respectively.

Sources and uses of cash are summarized below (in millions):


	For the Three Months Ended March 31,
	2021		2020
Net cash provided by operating activities	$	257.2	$	203.3
Net cash used in investing activities	$	(134.6)	$	(58.7)
Net cash used in financing activities	$	(33.2)	$	(145.2)

For the Nine Months Ended September 30
2017 2016
Net cash provided by operating activities $ 178.6
$ 127.1
Net cash used in investing activities $ (249.4 ) $ (94.1 )
Net cash provided by (used in) financing activities $ 75.6
$ (27.6 )

Operating Activities. Cash flow from operations is primarily influenced by changes in the timing of demand for our services and operating margins, but can also be affected by working capital needs associated with the various types of services we provide. Working capital is affected by changes in total accounts receivable, ~~CIEB,~~prepaid expenses and other current assets, accounts payable and payroll tax payments, including the effect of deferrals from COVID-19 relief provisions, accrued expenses and ~~BIEC,~~contract liabilities, all of which tend to be related. These working capital items are affected by changes in revenue resulting from ~~both~~ the timing and ~~the~~ volume of work performed, by variability in the timing of customer billings and collections of receivables, as well as settlement of payables and other obligations. Net cash provided by operating activities for the ~~nine~~three month period ended ~~September 30, 2017~~March 31, 2021 was ~~$179~~$257 million, as compared with approximately ~~$127~~$203 million ~~of net~~for the same period in 2020, for an increase in cash provided by operating activities ~~for the same period in 2016.~~of approximately $54 million. The increase ~~in cash flow from operating activities~~ was ~~driven by~~primarily due to an increase in net income, ~~of $110 million due~~coupled with increases in certain non-cash adjustments to ~~growth~~reconcile net income to operating cash flows, including depreciation expense. These increases were offset, in ~~revenue and an increase in~~part, by the effect of ~~non-cash adjustments of $107 million, partially offset by a decrease in the effect of net~~working capital-related changes in assets and liabilities, ~~of $165 million.~~net.

Our days sales outstanding, ~~(“DSO”),~~ net of ~~BIEC,~~contract liabilities (“DSO”) was 6780 as of ~~September 30, 2017, as compared with 68~~March 31, 2021 and 86 as of December 31, ~~2016~~ ~~and 61 as of September 30, 2016.~~2020. DSO ~~net of BIEC,~~ is calculated as total accounts receivable, net of allowance, less ~~BIEC,~~contract liabilities, divided by average daily revenue for the most recently completed quarter as of the balance sheet date. Our DSOs can fluctuate from period to period due to ~~the~~ timing of billings, billing terms, collections and settlements, timing of project close-outs and retainage collections, changes in project and customer mix and the effect of working capital initiatives. The decrease in our DSOs for the three month period ended March 31, 2021 was due to timing of ordinary course billing and collection activities. Other than matters subject to litigation, we do not anticipate material collection issues related to our outstanding accounts receivable balances, nor do we believe that we have material amounts due from customers experiencing financial difficulties. WeBased on current information, we expect to collect substantially all of our outstanding accounts receivable ~~net,~~balances within the next twelve months.

Investing Activities. Net cash used in investing activities increased by ~~$155~~approximately $76 million to ~~$249~~$135 million for the ~~nine~~three month period ended ~~September 30, 2017~~March 31, 2021 from ~~$94~~$59 million for the ~~nine~~three month period ended ~~September 30, 2016. For~~March 31, 2020. Cash paid for acquisitions, net, increased by approximately $89 million for the ~~nine~~three month period ended ~~September 30, 2017, payments for acquisitions, net of cash acquired, totaled $116 million due to our 2017 acquisitions, an increase of $112 million~~March 31, 2021 as compared with the same period in ~~2016. Payments for other investments, net, which relates primarily to activity associated with cost and equity investees, was $64 million for~~2020. For the ~~nine~~three month period ended September 30, 2017, as compared with $8 million for the same period in 2016, representing an increase in cash used in investing activities of approximately $56 million. Payments for other investments for the nine month period ended September 30, 2017 related to our equity investment in the Waha JVs, for which we have $19 million in letters of credit issued as collateral as of September 30, 2017, as described in Note 4 - Fair Value of Financial Instruments in the notes to the condensed unaudited consolidated financial statements, which is incorporated by reference. Proceeds from other investments for the nine month period ended September 30, 2017 related to recoveries from an equity method investment that is in the final stages of liquidation and is being managed by a receiver. Additionally, for the nine month period ended September 30, 2017,March 31, 2021, we spent ~~$83~~$48 million on capital expenditures, or ~~$70~~$42 million, net of asset disposals, as compared with ~~capital expenditures,~~$61 million, or $52 million, net of asset disposals, ~~of $82 million~~ for the same period in ~~the prior year,~~2020, for a decrease in cash used in investing activities of approximately $10 million. Payments for other investments, which related to investments in certain telecommunications entities, decreased from $12 ~~million.~~

~~Financing Activities.~~ ~~Net cash provided by financing activities~~million to $4 million for the ~~nine~~three month period ended ~~September 30, 2017 was $76 million,~~March 31, 2021 as compared with ~~$28 million of net~~the same period in 2020.

Financing Activities. Net cash used in financing activities for the ~~nine~~three month period ended ~~September 30, 2016,~~March 31, 2021 was $33 million, as compared with $145 million for the three month period ended March 31, 2020, for a decrease in cash used in financing activities of $112 million. The decrease in cash used in financing activities was driven primarily by share repurchases, which totaled $119 million for the three month period ended March 31, 2020. Credit facility and other borrowing-related activity, net, for the three month period ended March 31, 2021 totaled $9 million of borrowings, net of repayments, as compared with $4 million for the three month period ended March 31, 2020, for an increase in cash provided by financing activities

of ~~$103~~approximately $5 million. ~~Credit facility related activity, net,~~Payments of finance lease obligations increased by approximately $7 million for the ~~nine~~three month period ended ~~September 30, 2017, totaled $162 million of borrowings, net of repayments,~~March 31, 2021 as compared ~~to $37 million for~~with the ~~nine month~~same period ~~ended September 30, 2016,~~in 2020, for an increase in cash ~~provided by credit facility-related activities, net, of $125 million, which increase was partially offset by payments of $6 million for Credit Facility-related~~used in financing costs. Payments of acquisition-related contingent consideration for the nine month periods ended September 30, 2017 and 2016 were generally flat, totaling $19 million in 2017 as compared with $20 million in 2016.activities.

Senior Secured Credit Facility

We have a senior secured credit facility ~~that we refer to as our~~(the “Credit ~~Facility,” which was amended and restated in February 2017. As of~~Facility”) maturing on September ~~30, 2017,~~19, 2024. Aggregate borrowing commitments under the Credit Facility ~~has aggregate borrowing commitments of approximately $1.5~~total $1.75 billion, composed of ~~$1.1~~$1.35 billion of revolving commitments and ~~an outstanding~~a term loan totaling $400 million in ~~the aggregate~~original principal amount, of ~~$400 million.~~which $395 million was outstanding as of March 31, 2021. Borrowings under the Credit Facility are used for working capital requirements, capital expenditures and other corporate purposes, including ~~investments in equity or other investees,~~ potential acquisitions or other strategic arrangements, equity investments, share repurchases and the repurchase or prepayment of indebtedness.

We are dependent upon borrowings and letters of credit under the Credit Facility to fund our operations. Should we be unable to comply with the terms and conditions of ~~the~~our Credit Facility, we would be required to obtain modifications to the Credit Facility or obtain an alternative source of financing to continue to operate, neither of which may be available to us on commercially reasonable terms, or at all. The Credit Facility is subject to certain provisions and covenants, as more fully described in Note 7 - Debt in the notes to the ~~condensed unaudited~~audited consolidated financial statements ~~which is incorporated by reference.~~included in our 2020 Form 10-K.

~~4.875%~~4.50% Senior Notes

We have ~~outstanding $400~~$600 million of ~~4.875% senior notes~~4.50% Senior Notes due ~~March~~August 15, ~~2023 (our “4.875%~~2028 (the “4.50% Senior Notes”)~~, which were issued in 2013 in a registered public offering.~~. The ~~4.875%~~4.50% Senior Notes are fully and unconditionally guaranteed on a senior unsecured, joint and several basis by our wholly-owned domestic restricted subsidiaries that guarantee our existing credit facilities, subject to certain ~~of our subsidiaries and~~exceptions. The 4.50% Senior Notes are subject to certain provisions and covenants, as more fully described in Note 7 - Debt ~~and Note 17 - Supplemental Guarantor Condensed Consolidating Financial Information~~ in the notes to the audited consolidated financial statements included in our ~~2016~~2020 Form 10-K. Also see Note 16 - Supplemental Guarantor Condensed Unaudited Consolidating Financial Information in the notes to the condensed unaudited consolidated financial statements in this Form 10-Q, which are incorporated by reference.

We were in compliance with the provisions and covenants contained in our outstanding debt instruments as of ~~September 30, 2017.~~March 31, 2021.

Additional Information

For detailed discussion and additional information pertaining to our debt instruments, see Note 7 - Debt in the notes to the audited consolidated financial statements included in our ~~2016~~2020 Form 10-K. Also see Note 7 - Debt in the notes to the ~~condensed unaudited~~ consolidated financial statements in this Form 10-Q for current period balances and discussion, which is incorporated by reference.

Off-Balance Sheet Arrangements

As is common in our industry, we have entered into certain off-balance sheet arrangements in the ordinary course of business. Our significant off-balance sheet transactions include liabilities associated with non-cancelable operating leaseswith durations of less than twelve months, letter of credit obligations, surety and performance and payment bonds entered into in the normal course of business, self-insurance liabilities, liabilities associated with multiemployer pension plans, liabilities associated with certain indemnification and guarantee arrangements and obligations relating to our ~~cost~~equity and ~~equity investees,~~other investment arrangements, including our

variable interest entities. Refer to Note 14 - Commitments and Contingencies, Note 4 - Fair Value of Financial Instruments and Note 15 - Related Party Transactions in the notes to the ~~condensed unaudited~~ consolidated financial statements, which are incorporated by reference.

The primary inflationary factors affecting our operations are labor and fuel costs, and to a lesser extent, material costs. In times of low unemployment, our labor costs may increase due to shortages in the supply of skilled labor. Additionally, the prices of oil and gas are subject to unexpected fluctuations due to events outside of our control, including geopolitical events, the effects of climate change and fluctuations in global supply and demand, which have recently caused volatility in the oil and gas markets. We closely monitor inflationary factors and any impact they may have on our business operations, operating results or financial condition.



Florida		65-0829355
(State or ~~Other~~other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
~~Incorporation or Organization)~~		~~Identification No.)~~

800 S. Douglas Road, 12th Floor
Coral Gables, FL	Florida	33134
(Address of ~~Principal Executive Offices)~~principal executive offices)		(Zip Code)


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.10 Par Value	MTZ	New York Stock Exchange



		Page
Part I. FINANCIAL INFORMATION		3
Item 1	Financial Statements (Unaudited)	3
	~~Condensed Unaudited~~ Consolidated Statements of Operations	3
	~~Condensed Unaudited~~ Consolidated Statements of Comprehensive Income	4
	~~Condensed Unaudited~~ Consolidated Balance Sheets	5
	~~Condensed Unaudited~~ Consolidated Statements of Equity	6
	Consolidated Statements of Cash Flows	67
	Notes to ~~the Condensed Unaudited~~ Consolidated Financial Statements (Unaudited)	78
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2923
Item 3	Quantitative and Qualitative Disclosures About Market Risk	4132
Item 4	Controls and Procedures	4133
Part II. OTHER INFORMATION		4234
Item 1	Legal Proceedings	4234
Item 1A	Risk Factors	4234
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	4234
Item 4	Mine Safety Disclosures	4234
Item 6	Exhibits	4234
SIGNATURES		4336



As of September 30 2017	MasTec, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated MasTec, Inc.
Assets
Total current assets	$	—	$	1,576.0	$	259.8	$	(88.1	)	$	1,747.7
Property and equipment, net	—		600.8		90.6		—			691.4
Goodwill and other intangible assets, net	—		1,187.9		143.0		—			1,330.9
Investments in and advances to consolidated affiliates, net	1,279.7		848.0		710.2		(2,837.9		)	—
Other long-term assets	15.8		25.7		130.6		—			172.1
Total assets	$	1,295.5	$	4,238.4	$	1,334.2	$	(2,926.0	)	$	3,942.2
Liabilities and equity
Total current liabilities	$	—	$	982.5	$	107.7	$	(88.1	)	$	1,002.2
Long-term debt	—		1,181.1		11.2		—			1,192.3
Other long-term liabilities	—		432.0		12.7		—			444.7
Total liabilities	$	—	$	2,595.6	$	131.6	$	(88.1	)	$	2,639.1
Total equity	$	1,295.5	$	1,642.8	$	1,202.6	$	(2,837.9	)	$	1,303.0
Total liabilities and equity	$	1,295.5	$	4,238.4	$	1,334.2	$	(2,926.0	)	$	3,942.2



As of December 31, 2016	MasTec, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated MasTec, Inc.
Assets
Total current assets	$	—	$	1,256.3	$	175.8	$	(29.6	)	$	1,402.5
Property and equipment, net	—		456.6		92.5		—			549.1
Goodwill and other intangible assets, net	—		1,037.4		138.2		—			1,175.6
Investments in and advances to consolidated affiliates, net	1,083.9		625.9		861.2		(2,571.0		)	—
Other long-term assets	12.6		25.3		18.0		—			55.9
Total assets	$	1,096.5	$	3,401.5	$	1,285.7	$	(2,600.6	)	$	3,183.1
Liabilities and equity
Total current liabilities	$	—	$	759.7	$	109.9	$	(29.6	)	$	840.0
Long-term debt	—		938.7		22.7		—			961.4
Other long-term liabilities	—		256.2		21.9		—			278.1
Total liabilities	$	—	$	1,954.6	$	154.5	$	(29.6	)	$	2,079.5
Total equity	$	1,096.5	$	1,446.9	$	1,131.2	$	(2,571.0	)	$	1,103.6
Total liabilities and equity	$	1,096.5	$	3,401.5	$	1,285.7	$	(2,600.6	)	$	3,183.1



	For the Three Months Ended September 30						For the Nine Months Ended September 30
	2017			2016			2017			2016
Revenue	$	1,955,752		$	1,586,181		$	5,004,116		$	3,792,811
Costs of revenue, excluding depreciation and amortization	1,726,173			1,368,988			4,323,642			3,321,571
Depreciation and amortization	50,101			42,584			138,384			122,249
General and administrative expenses	66,397			67,131			202,001			195,031
Interest expense, net	17,578			13,097			44,966			37,895
Equity in (earnings) losses of unconsolidated affiliates	(7,399		)	6			(15,105		)	(3,549		)
Other income, net	(4,677		)	(971		)	(4,102		)	(12,803		)
Income before income taxes	$	107,579		$	95,346		$	314,330		$	132,417
Provision for income taxes	(43,378		)	(38,816		)	(126,170		)	(54,331		)
Net income	$	64,201		$	56,530		$	188,160		$	78,086
Net income attributable to non-controlling interests	449			253			1,770			414
Net income attributable to MasTec, Inc.	$	63,752		$	56,277		$	186,390		$	77,672

Earnings per share (Note 2):
Basic earnings per share	$	0.79		$	0.70		$	2.31		$	0.97
Basic weighted average common shares outstanding	80,953			80,462			80,859			80,323

Diluted earnings per share	$	0.77		$	0.69		$	2.27		$	0.96
Diluted weighted average common shares outstanding	82,386			81,545			82,281			81,241



Supplemental cash flow information:
Interest paid	$	47,163	$	40,433
Income taxes paid, net of refunds	$	77,533	$	15,141
Supplemental disclosure of non-cash information:
Acquisition-related contingent consideration, new business combinations	$	89,614	$	—
Equipment acquired under capital lease and financing arrangements	$	129,567	$	13,015
Accrued capital expenditures	$	1,345	$	4,119



Acquisition consideration:	2017
Cash	$	118.8
Fair value of contingent consideration (earn-out liability)	89.6
Total consideration transferred	$	208.4
Identifiable assets acquired and liabilities assumed:
Current assets, primarily composed of accounts receivable and $2.8 million of cash acquired	$	42.7
Property and equipment	56.9
Amortizing intangible assets	26.8
Other long-term assets	0.5
Current liabilities, including current portion of capital lease obligations and long-term debt	(28.4		)
Long-term debt, including capital lease obligations	(9.9		)
Deferred income taxes	(15.5		)
Total identifiable net assets	$	73.1
Goodwill	$	135.3
Total net assets acquired, including goodwill	$	208.4



Activity, restricted shares: ^(a)	Restricted Shares		Per Share Weighted Average Grant Date Fair Value
Non-vested restricted shares, as of December 31, 2016	1,970,586		$	21.61
Granted	193,348		39.47
Vested	(304,211	)	40.72
Canceled/forfeited	(30,041	)	20.24
Non-vested restricted shares, as of September 30, 2017	1,829,682		$	20.34


~~(a)~~	The Company's relationship with Energy Transfer affiliates is based upon various construction contracts for pipeline activities with Energy Transfer Partners L.P., and their subsidiaries and affiliates, all of which are consolidated by Energy Transfer Equity, L.P. Revenue from Energy Transfer affiliates is included in the Oil and Gas segment.



For the Nine Months Ended September 30, 2017	MasTec, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated MasTec, Inc.
Revenue	$	—		$	4,763.4		$	347.4		$	(106.7	)	$	5,004.1
Costs of revenue, excluding depreciation and amortization	—			4,097.7			332.6			(106.7		)	4,323.6
Depreciation and amortization	—			112.2			26.2			—			138.4
General and administrative expenses	1.7			187.7			12.6			—			202.0
Interest expense (income), net	—			91.5			(46.5		)	—			45.0
Equity in earnings of unconsolidated affiliates	—			—			(15.1		)	—			(15.1		)
Other (income) expense, net	—			(9.9		)	5.8			—			(4.1		)
(Loss) income before income taxes	$	(1.7	)	$	284.2		$	31.8		$	—		$	314.3
Benefit from (provision for) income taxes	0.6			(104.9		)	(21.9		)	—			(126.2		)
Net (loss) income before equity in income from subsidiaries	$	(1.1	)	$	179.3		$	9.9		$	—		$	188.2
Equity in income from subsidiaries, net of tax	187.5			—			—			(187.5		)	—
Net income (loss)	$	186.4		$	179.3		$	9.9		$	(187.5	)	$	188.2
Net income attributable to non-controlling interests	—			—			1.8			—			1.8
Net income (loss) attributable to MasTec, Inc.	$	186.4		$	179.3		$	8.1		$	(187.5	)	$	186.4
Comprehensive income (loss)	$	187.5		$	179.3		$	11.1		$	(188.6	)	$	189.3


~~ITEM 2.~~	~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~



Reportable Segment (in millions):	September 30, 2017		June 30, 2017		September 30, 2016
Communications	$	3,505	$	3,375	$	3,125
Oil and Gas	907		1,506		1,134
Electrical Transmission	268		295		269
Power Generation and Industrial	331		85		116
Other	3		4		7
Estimated 18-month backlog	$	5,014	$	5,265	$	4,651



	For the Three Months Ended September 30										For the Nine Months Ended September 30
	2017					2016					2017						2016
Revenue	$	1,955.8		100.0	%	$	1,586.2		100.0	%	$	5,004.1			100.0	%	$	3,792.8		100.0	%
Costs of revenue, excluding depreciation and amortization	1,726.2			88.3	%	1,369.0			86.3	%	4,323.6				86.4	%	3,321.6			87.6	%
Depreciation and amortization	50.1			2.6	%	42.6			2.7	%	138.4				2.8	%	122.2			3.2	%
General and administrative expenses	66.4			3.4	%	67.1			4.2	%	202.0				4.0	%	195.0			5.1	%
Interest expense, net	17.6			0.9	%	13.1			0.8	%	45.0				0.9	%	37.9			1.0	%
Equity in earnings of unconsolidated affiliates	(7.4		)	(0.4	)%	—			—	%	(15.1		)		(0.3	)%	(3.5		)	(0.1	)%
Other income, net	(4.7		)	(0.2	)%	(1.0		)	(0.1	)%	(4.1		)		(0.1	)%	(12.8		)	(0.3	)%
Income before income taxes	$	107.6		5.5	%	$	95.3		6.0	%	$	314.3		��	6.3	%	$	132.4		3.5	%
Provision for income taxes	(43.4		)	(2.2	)%	(38.8		)	(2.4	)%	(126.2		)		(2.5	)%	(54.3		)	(1.4	)%
Net income	$	64.2		3.3	%	$	56.5		3.6	%	$	188.2			3.8	%	$	78.1		2.1	%
Net income attributable to non-controlling interests	0.4			0.0	%	0.3			0.0	%	1.8				0.0	%	0.4			0.0	%
Net income attributable to MasTec, Inc.	$	63.8		3.3	%	$	56.3		3.5	%	$	186.4			3.7	%	$	77.7		2.0	%


	Revenue												EBITDA and EBITDA Margin																					Revenue				EBITDA and EBITDA Margin
	For the Three Months Ended September 30						For the Nine Months Ended September 30						For the Three Months Ended September 30										For the Nine Months Ended September 30											For the Three Months Ended March 31,					For the Three Months Ended March 31,
Reportable Segment:	2017			2016			2017			2016			2017					2016					2017					2016					Reportable Segment:	2021		2020				2021				2020
Communications	$	610.5		$	624.3		$	1,762.2		$	1,728.0		$	65.3		10.7	%	$	62.8		10.1	%	$	173.2		9.8	%	$	190.9		11.0	%	Communications	$	568.6	$	644.1			$	48.9	8.6	%	$	50.8	7.9	%
Clean Energy and Infrastructure																																	Clean Energy and Infrastructure	350.4		286.3				10.9		3.1	%	5.0		1.7	%
Oil and Gas	1,161.0			736.0			2,757.2			1,454.3			108.1			9.3	%	117.8			16.0	%	356.1			12.9	%	187.6			12.9	%	Oil and Gas	725.5		359.1				167.6		23.1	%	74.4		20.7	%
Electrical Transmission	81.8			101.7			277.3			283.6			4.5			5.5	%	(8.3		)	(8.1	)%	11.2			4.0	%	(42.0		)	(14.8	)%	Electrical Transmission	133.5		128.1				3.6		2.7	%	8.3		6.5	%
Power Generation and Industrial	96.9			123.6			204.1			324.7			9.3			9.6	%	6.1			4.9	%	14.8			7.3	%	13.8			4.3	%
Other	10.6			7.6			14.2			14.9			10.1			95.2	%	(3.1		)	(40.6	)%	11.6			81.7	%	(2.6		)	(17.4	)%	Other	0.0		0.0				7.4		NM		7.4		NM
Eliminations	(5.0		)	(7.0		)	(10.9		)	(12.7		)	—			—		—			—		—			—		—			—		Eliminations	(2.6)		(1.0)				—		—		—		—
Corporate	—			—			—			—			(22.0		)	NA		(24.3		)	NA		(69.2		)	NA		(55.1		)	NA		Corporate	—		—				(40.0)		—		(31.9)		—
Consolidated Results	$	1,955.8		$	1,586.2		$	5,004.1		$	3,792.8		$	175.3		9.0	%	$	151.0		9.5	%	$	497.7		9.9	%	$	292.6		7.7	%	Consolidated Results	$	1,775.4	$	1,416.6			$	198.4	11.2	%	$	114.0	8.0	%


Period	Total Number of Shares Purchased (a)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares that May Yet be Purchased under the Program (b)
January 1 through January 31	7,317	$	79.19	—	$	158,617,588
February 1 through February 28	6,115	$	86.94	—	$	158,617,588
March 1 through March 31	43,375	$	97.78	—	$	158,617,588
Total	56,807			—



Period	Total Number of Shares Purchased ^(a)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program ^(b)	Approximate Dollar Value of Shares that May Yet be Purchased under the Program
July 1 through July 31	—	$	—	—	$	100,000,000
August 1 through August 31	462	$	40.00	—	$	100,000,000
September 1 through September 30	—	$	—	—	$	100,000,000
Total	462			—


~~(a)~~	~~Reflects share repurchases associated with certain employee elections under compensation and benefit programs.~~


~~(b)~~	No shares were purchased for the three months ended September 30, 2017 under the Company’s $100 million 2016 share repurchase program, which was publicly announced on February 26, 2016 and does not have an expiration date.


Exhibit No.						Description
10.1+						MasTec, Inc. Amended and Restated 2011 Employee Stock Purchase Plan, filed as Exhibit 10.5 to our Annual Report on Form 10-K filed with the SEC on February 25, 2021 and incorporated by reference herein.
10.2+						MasTec, Inc. Amended and Restated Bargaining Units ESPP, filed as Exhibit 10.12 to our Annual Report on Form 10-K filed with the SEC on February 25, 2021 and incorporated by reference herein.
31.1*						Certifications required by Section 302(a) of the Sarbanes-Oxley Act of 2002.
31.2*						Certifications required by Section 302(a) of the Sarbanes-Oxley Act of 2002.
32.1**						Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**						Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS						Inline XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
101.SCH						Inline XBRL Taxonomy Extension Schema
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase
104						The cover page of MasTec, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, formatted in Inline XBRL (included with the Exhibit 101 attachments).


				MASTEC, INC.
Date:			May 6, 2021
				/s/ JOSÉ R. MAS
				José R. Mas
				Chief Executive Officer
				(Principal Executive Officer)

				~~MASTEC, INC.~~
~~Date:~~	~~November 2, 2017~~
		/s/ ~~JOSÉ R. MAS~~GEORGE L. PITA
				~~José R. Mas~~
		~~Chief Executive Officer~~
		~~(Principal Executive Officer)~~

		~~/s/~~ ~~GEORGE L. PITA~~
		George L. Pita
				Chief Financial Officer
				(Principal Financial and Accounting Officer)



~~Exhibit No.~~		~~Description~~
4.1*		~~Eighteenth Supplemental Indenture, dated as of November 1, 2017, by and among MasTec Inc., MasTec, Inc.’s subsidiary parties thereto, as guarantors, and U.S. Bank National Association, as trustee.~~
12.1*		~~Computation of Ratio of Earnings to Fixed Charges~~
31.1*		~~Certifications required by Section 302(a) of the Sarbanes-Oxley Act of 2002~~
31.2*		~~Certifications required by Section 302(a) of the Sarbanes-Oxley Act of 2002~~
32.1**		~~Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002~~
32.2**		~~Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002~~
101.INS*		~~XBRL Instance Document~~
101.SCH*		~~XBRL Taxonomy Extension Schema~~
101.CAL*		~~XBRL Taxonomy Extension Calculation Linkbase~~
101.DEF*		~~XBRL Taxonomy Extension Definition Linkbase~~
101.LAB*		~~XBRL Taxonomy Extension Label Linkbase~~
101.PRE*		~~XBRL Taxonomy Extension Presentation Linkbase~~