Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 2020

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 3
Chunk 2020
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IEs that are not consolidated totaled approximately $23 million as of both December 31, 2024 and 2023, which amounts are recorded within other long-term assets in the consolidated balance sheets.  Management believes that the Company’s maximum exposure to loss for its non-consolidated VIEs, inclusive of additional financing commitments, approximated $34 million and $35 million as of  December 31, 2024 and 2023, respectively.Senior NotesIn the first quarter of 2024, management reevaluated its fair value hierarchy determination for its senior notes to better align with the valuation hierarchy of the fair value guidance, which resulted in an update of the Level determination from Level 1 inputs to Level 2 inputs.  The update had no effect on the reported fair values of the related senior notes.  As of December 31, 2024, the estimated fair values of the Company’s senior notes were determined based on an exit price approach using Level 2 inputs.  See Note 7 - Debt for additional information pertaining to the Company’s senior notes.

Note 5 – Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities 

The following table provides details of accounts receivable, net of allowance, and contract assets (together “accounts receivable, net”) as of the dates indicated (in millions):December 31,20242023Contract billings$1,400.6 $1,385.2 Less allowance(19.1)(15.1)Accounts receivable, net of allowance$1,381.5 $1,370.1 Retainage$335.3 $356.4 Unbilled receivables1,220.5 1,400.0 Contract assets$1,555.8 $1,756.4 Contract billings represent the amount of performance obligations that have been billed but not yet collected, whereas contract assets consist of unbilled receivables and retainage.  Unbilled receivables represent the estimated value of unbilled work for projects with performance obligations recognized over time.  Unbilled receivables, which are included in contract assets, include amounts for work performed for which the Company has an unconditional right to receive payment and that are not subject to the completion of any other specific task, other than the billing itself.  Retainage represents a portion of the contract amount that has been billed, but for which the contract allows the customer