Company: MTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000015615-25-000079
Chunk: 95

Company: MASTEC INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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.  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.Significant Accounting PoliciesRevenue RecognitionThe Company recognizes revenue from contracts with customers when, or as, control of promised services and goods is transferred to customers.  The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for the services and goods transferred.  The Company primarily recognizes revenue 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.

9

Contracts.  The Company derives revenue primarily from construction projects performed under: (i) master service and other service agreements, which generally 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 requiring the construction and installation of an entire infrastructure system, or specified units within an infrastructure system, which may be subject to one or multiple pricing models, including fixed price, unit price, time and materials, or cost plus a markup.  Revenue derived from projects performed under master service and other service agreements totaled 45% and 40% of consolidated revenue for the three months ended June 30, 2025 and 2024, respectively, and totaled 46% and 40% for the six months ended June 30, 2025 and 2024, respectively.For certain master service and other service agreements, revenue is recognized at a point in time, primarily for install-to-the-home and certain other wireless services in the Company’s Communications segment.  Point in time revenue is recognized when the work order has been fulfilled, which, for the majority of the Company’s point in time revenue, is the same day it is initiated.  Point in time revenue accounted for approximately 1% and 2% of consolidated revenue for the three months ended June 30, 2025 and 2024, respectively, and totaled approximately 2% for both the six months ended June 30, 2025 and 2024.The total transaction price and cost estimation processes used for recognizing revenue over time under the cost-to-cost method are based primarily on the professional knowledge and experience of the Company’s project managers, operational and financial professionals, and