Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 2365

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 6
Chunk 2365
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-out liabilities for the 2022 acquisitions was estimated to be up to $1 million; however, there is no maximum payment amount.  See Note 4 - Fair Value of Financial Instruments for fair value estimates and other details related to the Company’s earn-out arrangements.  Current liabilities reflected in the table above also include operating lease liabilities and contingent liabilities for insurance, legal and other matters.  Approximately $48 million of the goodwill balance related to the 2022 acquisitions is expected to be tax deductible as of December 31, 2024.

74

HMG Additional Payments.  The 2021 HMG purchase agreement provides for certain additional payments to be made to the sellers if certain receivables are collected by the Company (the “Additional Payments”).  Pursuant to the terms of the purchase agreement, a portion of the Additional Payments will be made in cash, with the remainder due in shares of MasTec common stock.  The estimated number of potential shares that could be issued related to such Additional Payments will be based on the amounts ultimately collected and the share price as defined within the purchase agreement.  Changes in the estimated fair value of potential shares that could be issued, which result from changes in MasTec’s share price as compared with the share price as defined within the purchase agreement, are reflected as unrealized gains or losses within other income or expense, as appropriate.  As of December 31, 2024 and 2023, the estimated fair value of remaining Additional Payments totaled approximately $14 million and $34 million, respectively, which amounts are included within other current liabilities in the consolidated balance sheet.  In November 2024 and May 2022, the Company made Additional Payments of approximately $26 million and $29 million, respectively, which were composed of cash payments of approximately $12 million and $18 million, respectively, and are reflected within financing activities in the consolidated statement of cash flows, and MasTec common stock totaling approximately 93,000 and 133,000 shares, respectively.  For the year ended December 31, 2024, fair value adjustments related to the contingent shares totaled losses of approximately $5.5 million and for the years ended December 31, 2023 and 2022, fair value adjustments related to the contingent shares totaled gains of approximately $1.3 million and $2.2 million, respectively.  The estimated number of shares that would be paid in connection with the remaining Additional Payment liability totaled approximately 50,000 and 160,