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 other infrastructure, such as: wireless, wireline/fiber and customer fulfillment activities; petroleum and natural gas pipeline infrastructure; electrical utility transmission and distribution; power generation, including from renewable sources; heavy civil; and industrial infrastructure. MasTec’s customers are primarily in these industries. MasTec reports its results under 5 reportable segments: (1) Communications; (2) Oil and Gas; (3) Electrical Transmission; (4) Clean Energy and Infrastructure; and (5) Other. During the second quarter of 2020, the Company renamed its Power Generation and Industrial;Industrial segment as the Clean Energy and (5) Other.Infrastructure segment to better represent the nature of the segment’s operations, end markets and customer characteristics. There was no change to the composition of the segment or its historical results.

The accompanying 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 consolidated balance sheet as of December 31, 2019 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 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, 2019 contained in the Company’s 2019 Annual Report on Form 10-K (the “2019 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. 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 consolidated financial statements are adequate to make the information not misleading.

The accompanying 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, 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 investments in entities for which the Company does not have a controlling interest, but over which it has the ability to exert significant influence, are accounted for using the equity method of accounting. For equity investees in which the Company has an undivided interest in the assets, liabilities and profits or losses of an unincorporated entity, but does not exercise control over the entity, the Company consolidates its proportional interest in the accounts of the entity.

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 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. 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 consolidated financial statements, “$” means U.S. dollars unless otherwise noted.

The preparation of consolidated financial statements in 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. These estimates are based on historical experience and various other assumptions, including the resultspotential future effects of whichthe COVID-19 pandemic and other relevant global events. These estimates form the basis offor making judgments about the Company’s operating results and the carrying values of assets and liabilities that are not readily apparent from other 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 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;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. 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 estimates.

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 primarily

For certain master service and other service agreements under which the Company performs installation and maintenance services, primarily for install-to-the-home service providers in its Communications segment, revenue is recognized at a point in time. This is generally when the work order has been fulfilled, which is typically the same day the work is initiated. PointFor each of the three and six month periods ended June 30, 2020 and 2019, point in time revenue accounted for approximately 6%5% of consolidated revenue for both the three month periods ended March 31, 2020 and 2019.revenue. Substantially all of the Company’s other revenue is recognized over time.

The total contract transaction price and cost estimation processes used for recognizing revenue over time under the 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 transaction price and total project costs on an ongoing basis. Changes in job performance, job conditions and management’s assessment of expected variable consideration are factors that influence estimates of the total contract transaction price, total costs to complete those contracts and the Company’s profit recognition. Changes in these factors could result in revisions to 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 losses are determined. For both the threesix month periods ended March 31,June 30, 2020 and 2019, 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, 2019 and 2018. Revenue recognized for the three month periods ended March 31,June 30, 2020 and 2019 as a result of changes in total contract transaction price estimates, including fromfor variable consideration, from performance obligations satisfied or partially satisfied in prior periods, totaled approximately $17.8$5.4 million and $12.5$22.6 million, respectively, and totaled $15.8 million and $28.9 million for the six month periods ended June 30, 2020 and 2019, respectively.

The Company may incur certain costs that can be capitalized, such as initial set-up or mobilization costs. Such costs, which are amortized over the life of the respective projects, were not material in either offor the three or six month periods ended March 31,June 30, 2020 or 2019.

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,June 30, 2020, the amount of the Company’s remaining performance obligations was $5.7$5.3 billion. Based on current expectations, the Company expects to recognize approximately $4.5$2.8 billion of its remaining performance obligations as revenue during 2020, with the remainder to be recognized primarily in 2021.

As of March 31,June 30, 2020 and December 31, 2019, the Company included approximately $35$40 million and $27 million, respectively, of change orders and/or claims in transaction prices for certain contracts that were in the process of being resolved in the ordinary course of business, including through negotiation, arbitration and other proceedings. These transaction price adjustments, when earned, are included within contract assets or accounts receivable, net of allowance, as appropriate. As of both March 31,June 30, 2020 and December 31, 2019, these change orders and/or claims were primarily related to certain projects in the Company’s Oil and Gas segment.and Electrical Transmission segments. The Company actively engages with its customers to complete the final approval process, and generally expects these processes to be completed within one year. Amounts ultimately realized upon final agreement by customers could be higher or lower than such estimated amounts.

See the recent accounting pronouncements discussion below for information pertaining to the effects of recently adopted and other recent accounting pronouncements, as updated from the discussion in the Company’s 2019 Form 10-K.

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

The Company repurchased approximately 3.6 million shares of its common stock during the threesix month period ended March 31,June 30, 2020, as discussed in Note 11 - Equity. The effect of these repurchases on the Company’s first quarter 2020 weighted average shares outstanding for the six month period ended June 30, 2020 was not significanta reduction of 2.2 million shares, due to the timing of the repurchases, which occurred in the latter part of the quarter. In future quarters, these share repurchases will be fully reflected in the total number of weighted average shares outstanding for the respective quarter to date periods.repurchases.

For the three and six month periods ended March 31,June 30, 2020, the Company’s consolidated results of operations included acquisition-related revenue of approximately $63.5 million and $113.0 million, respectively, and included acquisition-related net income of approximately $0.4 million and acquisition-related net losses of approximately $0.5 million, respectively, based on the Company’s consolidated effective tax rates. For the three and six month periods ended June 30, 2019, the Company’s consolidated results of operations included acquisition-related revenue of approximately $49.5$35.5 million and $39.7$75.1 million, respectively, and included acquisition-related net losslosses of approximately $1.2$1.4 million and $6.1$7.4 million, respectively, based on the Company’s consolidated effective tax rates. These acquisition-related results do not include the effects of acquisition costs or interest expense associated with consideration paid for the related acquisitions.

The Company’s financial instruments include cash and cash equivalents, accounts and notes receivable, cash collateral deposited with insurance carriers, life insurance assets, equity investments, investments in convertible debt securities and warrants, deferred compensation plan assets and liabilities, accounts payable and other current liabilities, acquisition-related contingent consideration, mandatorily redeemable non-controlling interests 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.

Acquisition-related contingent consideration and other liabilities is composed of Earn-outs, which represent the estimated fair value of future amounts payable for businesses that are contingent upon the acquired business achieving certain levels of earnings in the future. As of March 31,June 30, 2020 and December 31, 2019, the estimated fair value of the Company’s Earn-out liabilities totaled $176.0$132.8 million and $173.2 million, respectively, of which $52.9$47.1 million and $54.1 million, respectively, was included within other current liabilities. The fair values of the Company’s Earn-out liabilities are estimated using income approaches such as discounted cash flows or option pricing models, both of which incorporate significant inputs not observable in the 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 ranged from 12.0% to 24.7%, with a weighted average rate of 14.0%15.3% based on the relative fair value of each instrument as of March 31,June 30, 2020, and probability-weighted projections of earnings before interest, taxes, depreciation and amortization (“EBITDA”). Significant changes in any of these assumptions could result in significantly higher or lower potential Earn-out liabilities. The ultimate payout of Earn-out liabilities will be based on actual results achieved. As of March 31,June 30, 2020, the range of potential undiscounted Earn-out liabilities was estimated to be between $60$20 million and $256$206 million; however, there is no maximum payment amount.

Earn-out activity consists primarily of additions from new business combinations; changes in the expected fair value of future payment obligations; and payments. Measurement period adjustments for Earn-out liabilities, which are fair value adjustments relating to new information obtained about the facts and circumstances existing as of the date of acquisition for a period of up to one year, are recorded to goodwill. Other revisions to the expected fair values of the Company’s traditional earn-out liabilities are reflected as other income or expense, as appropriate, and, for the mandatorily

There were 0 additionsAdditions to acquisition-related contingent consideration and other liabilities from new business combinations totaled $7.2 million for both the three and six month periodperiods ended March 31,June 30, 2020, and for the three and six month periodperiods ended March 31,June 30, 2019, additions from new business combinations totaled $15.2 million. Measurement$1.0 million and $16.2 million, respectively. There were 0 measurement period adjustments for the three month period ended March 31,June 30, 2020, and measurement period adjustments for the six month period ended June 30, 2020 totaled an increase of approximately $1.1 million, and related to a business in the Company’s Communications segment. There were 0 measurement period adjustments for the three or six month periodperiods ended March 31,June 30, 2019. Fair value adjustments, net, were de minimis for the three month period ended June 30, 2020, and totaled a net increase of approximately $1.8$1.7 million for the threesix month period ended March 31,June 30, 2020, and related to businesses in the Company’s Oil and Gas and Communications segments. Fair value adjustments, including those related to finalization of completed earn-out arrangements, totaled a net increase of approximately $7.2$29.2 million and $36.5 million for the three and six month periodperiods ended March 31,June 30, 2019, respectively, and related to businesses in the Company’s Oil and Gas and Communications segments. There were 0 Earn-out payments in either oftotaled $50.4 million for both the three and six month periods ended March 31,June 30, 2020, orand totaled $30.0 million for both the three and six month periods ended June 30, 2019.

The Company’s equity investments as of March 31,June 30, 2020 include: (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”), which are accounted for as equity method investments; (ii) a $15 million investment in Cross Country Infrastructure Services, Inc. (“CCI”); (iii) the Company’s interests in certain proportionately consolidated non-controlled contractual joint ventures; (iv) the Company’s equity interests in American Virtual Cloud Technologies, Inc., or “AVCT” (formerly named Pensare Acquisition Corp. (“Pensare”)); and (v) certain other equity investments.

Equity investments, other than those accounted for as equity method 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, less impairment (“adjusted cost basis”). As of March 31,June 30, 2020 and December 31, 2019, the aggregate carrying value of the Company’s equity investments totaled approximately $195$197 million and $196 million, respectively, including approximately $17 million and $18 million of equity investments measured on an adjusted cost basis as of both March 31,June 30, 2020 and December 31, 2019.2019, respectively. There were 0 impairments of, or material changes in the fair valuevalues of, or impairments related to, these investments during either of the threesix month periods ended March 31,June 30, 2020 or 2019.

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, 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 and six month periods ended March 31,June 30, 2020, the Company’s proportionate share of unrecognized unrealized activity on these interest rate swaps totaled losses of approximately $1.7 million, or $1.3 million, net of tax, and $32.0 million, or $24.3 million, net of tax, respectively. For the three and six month periods ended June 30, 2019, the Company’s proportionate share of unrecognized unrealized activity on these interest rate swaps totaled losses of approximately $30.3$11.6 million, or $23.0$8.7 million, net of tax, and $7.2$18.8 million, or $5.5$14.2 million, net of tax, respectively.

The Company paid $2.0 million for the AVCT shares and initial warrants in 2017. The AVCT shares are not transferable or salable until April 7, 2021, with limited exceptions. The initial warrants are exercisable at any time from May 7, 2020, until the earlier to occur of April 7, 2025 and the liquidation of AVCT, subject to extension. In April 2020, concurrent with the completion of AVCT’s business combination with Stratos Management Systems, Inc., MasTec invested $3.0 million for the AVCT warrants and AVCT convertible debentures. The AVCT warrants are exercisable at any time from April 7, 2020 through April 7, 2025. The AVCT convertible debentures have a stated annual interest rate of 10%, which is paid in-kind on a quarterly basis until maturity. Maturity will occur upon the earlier of MasTec’s demand, which may occur on or after October 7, 2022, or upon a change of control of AVCT. The AVCT convertible debentures may be converted in whole or in part at any time from April 7, 2020 until full payment thereof, subject to mandatory conversion of the convertible debentures, pursuant to the terms thereof, and the AVCT warrants are exercisable at any time from April 7,thereof.

As of June 30, 2020, through April 7, 2025. Due to the completion of the Computex business combination, the initial warrants will be exercisable beginning May 7, 2020, until the earlier to occur of April 7, 2025 and the liquidation of AVCT, subject to extension.

Contract billings represent the amount of performance obligations that have been billed but not yet 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 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 threesix month period ended March 31,June 30, 2020, provisions for credit losses totaled $1.6$12.3 million and impairmentinclude potential credit losses resulting from current economic uncertainty, as compared with credit losses of $0.9 million for the six month period ended June 30, 2019. Impairment losses on contract assets were not material.

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 referred to as deferred revenue. Contract liabilities also include the amount of any accrued project losses. Total contract liabilities, including accrued project losses, totaled approximately $204.3$338.2 million and $206.2 million as of March 31,June 30, 2020 and December 31, 2019, respectively, of which deferred revenue comprised approximately $181.4$316.7 million and $184.1 million, respectively. The increase in deferred revenue was primarily driven by timing of billings for projects in the Company’s Oil and Gas and Clean Energy and Infrastructure segments. For the three and six month periodperiods ended March 31,June 30, 2020, the Company recognized revenue of approximately $105.6$23.7 million and $129.3 million, respectively, related to amounts that were included in deferred revenue as of December 31, 2019, resulting primarily from the advancement of physical progress on the related projects during the period.

The Company is party to non-recourse financing arrangements in the ordinary course of business, under which certain receivables are settled with the customer’s bank in return for a nominal fee. Discount charges related to these arrangements, which are included within interest expense, net, totaled approximately $1.8$1.4 million and $2.9$2.8 million for the three month periods ended March 31,June 30, 2020 and 2019, respectively, and totaled $3.2 million and $5.7 million for the six month periods ended June 30, 2020 and 2019, respectively.

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

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

The Company’s senior secured credit facility (the “Credit Facility”) has aggregate borrowing commitments totaling approximately $1.75 billion as of March 31,June 30, 2020, composed of $1.35 billion of revolving commitments and a term loan of approximately $400 million. The term loan is subject to amortization in quarterly principal installments of $2.5 million commencing in December 2020, which amount will increase to $5.0 million commencing in December 2021. Quarterly principal installments on the term loan are subject to adjustment, if applicable, for certain prepayments.

As of March 31,June 30, 2020 and December 31, 2019, outstanding revolving loans, which included $125$111 million and $138 million, respectively, of borrowings denominated in foreign currencies, accrued interest at weighted average rates of approximately 2.47%2.38% and 3.50% per annum, respectively. The term loan accrued interest at rates of 2.24%1.43% and 3.05% as of March 31,June 30, 2020 and December 31, 2019, respectively. Letters of credit of approximately

The 4.875% 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 an unsecured, unsubordinated, joint and several basis by certain of the Company’s existing and future 100%-owned direct and indirect domestic subsidiaries that are each guarantors of the Credit Facility or other outstanding indebtedness. See Recently Issued Accounting Pronouncements in Note 16 - Supplemental Guarantor Condensed Consolidating Financial Information.1 – Business, Basis of Presentation and Significant Accounting Policies for information related to the Company’s adoption of the SEC’s amended rules regarding financial disclosure requirements for guarantors and issuers of guaranteed securities. MasTec was in compliance with the provisions and covenants of its outstanding debt instruments as of March 31,June 30, 2020 and December 31, 2019.

As of March 31,June 30, 2020 and December 31, 2019, accrued interest payable, which is recorded within other accrued expenses in the consolidated balance sheets, totaled $2.8$7.1 million and $7.5 million, respectively. For additional information pertaining to the Company’s debt instruments, including its 4.875% Senior Notes, see Note 7 - Debt in the Company’s 2019 Form 10-K.

In the ordinary course of business, the Company enters into agreements that provide financing for machinery and equipment and for other of its facility, vehicle and equipment needs, including related party leases. As of March 31,June 30, 2020, the Company’s leases have remaining lease terms of up to nine 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 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.

For the three month periods ended March 31,June 30, 2020 and 2019,, rent expense for leases that have terms in excess of one year totaled approximately $35.3$26.8 million and $27.9$27.4 million, respectively, of which $2.9$2.8 million and $2.3$2.1 million, respectively, represented variable lease costs, and for the six month periods ended June 30, 2020 and 2019, rent expense for such leases totaled approximately $62.1 million and $55.3 million, respectively, of which $5.7 million and $4.4 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $77.5$72.9 million and $92.8$115.6 million for the three month periods ended March 31,June 30, 2020 and 2019,, respectively, and totaling approximately $150.4 million and $208.4 million for the six month periods ended June 30, 2020 and 2019, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, and is included within operating activities in the consolidated statements of cash flows.

Future minimum lease commitments as of March 31,June 30, 2020 were as follows (in millions):

As of March 31,June 30, 2020, finance leases had a weighted average remaining lease term of 2.72.6 years and a weighted average discount rate of 4.1%4.0%. Non-cancelable operating leases had a weighted average remaining lease term of 4.24.0 years and a weighted average discount rate of 4.1%4.0% as of March 31,June 30, 2020.

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 March 31,June 30, 2020, there were approximately 3,154,0003,107,000 shares available for future grant. Non-cash stock-based compensation expense under all plans totaled $4.0$5.8 million and $3.7$4.2 million for the three month periods ended March 31,June 30, 2020 and 2019, respectively, and totaled $9.9 million and $7.9 million for the six month periods ended June 30, 2020 and 2019, respectively. Income tax benefits associated with stock-based compensation arrangements totaled $0.9$1.4 million and $3.2$1.1 million for the three month periods ended March 31,June 30, 2020 and 2019, respectively. For the six month periods ended June 30, 2020 and 2019 income tax benefits totaled $2.2 million and $4.2 million, respectively, including net tax deficiencies related to the vesting of share-based payment awards totaling $0.1$0.2 million and net tax benefits totaling $2.3 million, respectively.

MasTec grants restricted stock awards and restricted stock units (together, “restricted shares”) to eligible participants, which are valued based on the closing market share price of MasTec common stock (the “market price”) on the date of grant. During the restriction period, holders of restricted stock awards are entitled to vote the shares. As of March 31,June 30, 2020, total unearned compensation related to restricted shares was approximately $41.1$36.0 million, which is expected to be recognized over a weighted average period of approximately 2.42.2 years. The fair value of restricted shares that vested, which is based on the market price on the date of vesting, totaled $5.6$0.9 million and $13.6$0.3 million for the three month periods ended March 31,June 30, 2020 and 2019, respectively, and totaled $6.5 million and $13.9 million for the six month periods ended June 30, 2020 and 2019, respectively.

In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020.  The CARES Act among other things, includesprovides for various tax provisions relating to refundable payrollrelief and tax credits, deferment of employer’s social security payments, net operating loss utilization and carryback periods, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property (QIP).incentive measures. At this time, management does not believe that the CARES Act will have a material impact on the Company’s income tax provision forfinancial results in 2020.  The Company will continue to evaluate the impact of the CARES Act on its financial position, results of operations and cash flows.

The Company manages its operations under 5 operating segments, which represent its 5 reportable segments: (1) Communications; (2) Oil and Gas; (3) Electrical Transmission; (4) Power GenerationClean Energy and IndustrialInfrastructure and (5) Other. This structure is generally focused on broad end-user markets for the Company’s labor-based construction services. All 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, infrastructure for utilities, among others. The Company performs engineering, construction and maintenance services for oil and natural gas 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 GenerationClean Energy and IndustrialInfrastructure segment primarily serves energy, utility and other end-markets through the installation and construction of power facilities, including from renewable sources, 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 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 consolidated financial information determined in accordance with U.S. GAAP with certain non-U.S. GAAP financial measures, including EBITDA. The Company believes these non-U.S. GAAP measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. The Company uses EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results for its reportable segments, as well as items that can vary widely across different industries or among companies within the same industry. Segment EBITDA is calculated in a manner consistent with consolidated EBITDA.

Summarized financial information for MasTec’s reportable segments is presented and reconciled to consolidated financial information for total MasTec in the following tables, including a reconciliation of consolidated income before income taxes to EBITDA, all of which are presented in millions. The tables below may contain slight summation differences due to rounding.