Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 823

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 823
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 recorded as rent expense, primarily within costs of revenue, excluding depreciation and amortization.  Fixed costs for operating leases are composed of initial base rent amounts plus any fixed annual increases.  Variable costs for operating leases consist primarily of common area maintenance expenses and taxes for facility leases.  Certain of the Company’s operating 

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leases contain purchase options, for which the purchase option price is generally considered to be at fair market value.  From time to time, the Company may terminate a lease before the end of the lease term.  Payments related to such early lease terminations are generally recorded within general and administration expenses.Self-InsuranceThe Company is self-insured up to the amount of its deductible for its insurance policies.  MasTec maintains insurance policies subject to per claim deductibles of $2.0 million for its workers’ compensation policy and $10.0 million for each of its general liability and automobile liability policies.  In addition, the Company also maintains excess umbrella coverage.  The Company manages certain of its insurance liabilities indirectly through its wholly-owned captive insurance company, which reimburses claims up to the applicable insurance limits.  Cash balances held by the Company’s captive insurance company are generally not available for use in the Company’s other operations.Estimated liabilities under the Company’s insurance programs are accrued based upon management’s estimates of the ultimate liability for claims reported and an estimate of claims incurred but not reported, with assistance from third-party actuaries.  MasTec also maintains an insurance policy with respect to employee group medical claims, which is subject to annual per employee maximum losses of $0.6 million.  MasTec’s estimated liability for employee group medical claims is based on statistical analysis of historical claims experience and specific knowledge of actual losses that have occurred.  The Company is required to post collateral, generally in the form of letters of credit, surety bonds and cash to certain of its insurance carriers.  Cash collateral deposited with insurance carriers is included in other long-term assets in the consolidated balance sheets.The present value of the Company’s self-insurance liability is reflected in the consolidated balance sheets within current and other long-term liabilities, as appropriate.  The determination of such claims and expenses and the appropriateness of the related liability is reviewed and updated quarterly.  These insurance liabilities are, however, difficult to assess and estimate due to many factors, the effects of which are often unknown or difficult to estimate, including the severity of an injury or an incident, the determination of the Company’s liability in proportion to other parties and the number