Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 367

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 6
Chunk 367
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 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 of incidents not reported.  Accruals are based upon known facts, historical trends and claims experience, loss development patterns and other actuarial assumptions.  Although management believes its accruals are adequate, a change in experience or actuarial or management assumptions could materially affect the Company’s results of operations in a particular period.Income TaxesThe Company records income taxes using the asset and liability method of accounting for deferred income taxes.  Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement and income tax basis of the Company’s assets and liabilities.  Income taxes are estimated in each of the jurisdictions in which the Company operates.  This process involves estimating the tax exposure, together with assessing temporary differences resulting from differing treatment of items, such as deferred revenue, for tax and accounting purposes.  These differences result in deferred tax assets and liabilities, which are included, net, within the consolidated balance sheets as long-term assets and/or liabilities, as appropriate.  The recording of a deferred tax asset assumes the realization of such asset in the future.  Otherwise, a valuation allowance is recorded to reduce the asset to its estimated net realizable value.  If management determines that the Company may not be able to realize all or part of a deferred tax asset in the future, a valuation allowance for the deferred tax asset is charged to income tax expense in the period the determination is made.  Management considers future pretax income and ongoing prudent and feasible tax planning strategies in assessing the estimated net realizable value of tax assets and the corresponding need for any related valuation allowances.In determining the provision for income taxes, management uses an effective tax rate based on annual pre-tax income, statutory tax rates, permanent tax differences and tax planning opportunities in the various jurisdictions in which the Company operates.  The Company is generally free of additional U.S. federal tax consequences on distributed foreign subsidiary earnings.  The Company has generally not provided for U.S. income taxes on unremitted foreign earnings because such earnings are considered to be insignificant.Significant factors