Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 145

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 145
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, LLC, of an immaterial amount of cash.  There have been no material developments since the filing of such Form 10-K.Other Commitments and ContingenciesLeases.  In the ordinary course of business, the Company enters into non-cancelable operating leases for certain of its facility, vehicle and equipment needs, including certain related party leases.  See Note 7 – Lease Obligations and Note 12 – Related Party Transactions.Letters of Credit.  In the ordinary course of business, the Company is required to post letters of credit for its insurance carriers and surety bond providers and in support of performance under certain contracts as well as certain obligations associated with the Company’s equity investments and other strategic arrangements, including its VIEs.  In addition, from time to time, certain customers require the Company to post letters of credit to ensure payment of subcontractors and vendors, and guarantee performance under contracts.  Such letters of credit are generally issued by a bank or similar financial institution.  The letter of credit commits the issuer to pay specified amounts to the holder of the letter of credit under certain conditions.  If this were to occur, the Company would be required to reimburse the issuer of the letter of credit, which, depending upon the circumstances, could result in a charge to earnings.  As of September 30, 2025 and December 31, 2024, there were $54.2 million and $81.7 million, respectively, of letters of credit issued under the Company’s credit facilities.  Letter of credit claims have historically not been material.  The Company is not aware of any material claims relating to its outstanding letters of credit as of September 30, 2025 or December 31, 2024.Performance and Payment Bonds.  In the ordinary course of business, MasTec is required by certain customers to provide performance and payment bonds for contractual commitments related to its projects.  These bonds provide a guarantee to the customer that the Company will perform under the terms of a contract and that the Company will pay its subcontractors and vendors.  If the Company fails to perform under a contract or to pay its subcontractors and vendors, the customer may demand that the surety make payments or provide services under the bond.  The Company must reimburse the surety for expenses or outlays it incurs.  As of September 30, 2025 and December 31, 2024, outstanding performance and payment bonds approximated $9.4 billion and $7.6