Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 71

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 2
Chunk 71
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 Such capitalized costs, which are amortized over the life of the respective projects, were not material as of December 31, 2024 or 2023.The timing of customer billings is generally dependent upon advance billing terms, milestone billings based on completion of certain phases of work, or when services are provided.  Under the typical payment terms of master and other service agreements and contracts for specific projects, the customer makes progress payments based on quantifiable measures of performance by the Company as defined by each specific agreement.  Progress payments, generally net of amounts retained, are paid by the customer over the duration of the contract.  For install-to-the-home and certain other contracts and services, work orders are billed and paid as completed.  Amounts billed and due from customers, as well as the value of contract assets, are generally classified within current assets in the consolidated balance sheets.  See Note 5 - Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities for related discussion.  Amounts expected to be collected beyond one year are classified as other long-term assets.Performance Obligations.  A performance obligation is a contractual promise to transfer a distinct good or service to a customer.  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 Company’s contracts often require significant services to integrate complex activities and equipment into a single deliverable, and are 

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therefore generally accounted for as a single performance obligation, even when delivering multiple services.  Contract amendments and change orders, which are generally not distinct from the existing contract, are typically accounted for as a modification of the existing contract and performance obligation.  The majority of the Company’s performance obligations are completed within one year.When more than one contract is entered into with a customer on or close to the same date, the Company evaluates whether those contracts should be combined and accounted for as a single contract, as well as whether those contracts should be accounted for as one, or more than one, performance obligation.  This evaluation requires significant judgment and is based on the facts and circumstances of the specific contracts.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 December 31, 2024, the amount of the Company’s remaining performance obligations was $10.0 billion.  Based on current