Company: MTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000015615-25-000079
Chunk: 115

Company: MASTEC INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 connection with the amended and restated Credit Facility and the 2025 Term Loan Facility, deferred financing costs of $4.2 million and $1.2 million, respectively, were incurred and are being amortized over the respective terms of those instruments.  Such amortization is included in interest expense, net in the consolidated statements of operations.As of June 30, 2025 and December 31, 2024, accrued interest payable, which is recorded within other accrued expenses in the consolidated balance sheets, totaled $14.8 million and $20.8 million, respectively.  For additional information pertaining to the Company’s debt instruments, see Note 7 – Debt in the Company’s 2024 Form 10-K.

Note 7 – Lease Obligations

In the ordinary course of business, the Company enters into agreements that provide financing for machinery and equipment and other facility, vehicle and equipment needs, including certain related party leases.  As of June 30, 2025, the Company’s leases have remaining lease terms of up to 14 years.  Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for 1 to 5 years for both equipment and facility leases.  Certain lease agreements may also contain options to purchase the leased property and/or options to terminate the lease.  In addition, lease agreements may include periodic adjustments to payment amounts for inflation or other variables, or may require payments for taxes, insurance, maintenance or other expenses, which are generally referred to as non-lease components.  The Company’s lease agreements do not contain significant residual value guarantees or material restrictive covenants.

17

Finance LeasesThe gross amount of assets held under finance leases as of June 30, 2025 and December 31, 2024 totaled $800.0 million and $713.9 million, respectively.  Assets held under finance leases, net of accumulated depreciation, totaled $553.2 million and $473.0 million as of June 30, 2025 and December 31, 2024, respectively.  Depreciation expense associated with finance leases totaled $17.8 million and $22.7 million for the three months ended June 30, 2025 and 2024, respectively, and totaled $36.9 million and $46.9 million for the six months ended June 30, 2025 and 2024, respectively.Operating LeasesOperating lease additions for the three months ended June 30