Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 81

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 2
Chunk 81
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31, 2023 and 2022.  In 2023, quantitative testing was performed for (i) three reporting units within the Clean Energy and Infrastructure segment; (ii) one reporting unit in the Power Delivery operating segment; and (iii) one reporting unit within the Pipeline Infrastructure operating segment.  In 2022, quantitative testing was performed for (i) one reporting unit within the Clean Energy and Infrastructure segment; (ii) one reporting unit in the Power Delivery operating segment; and (iii) four reporting units within the Pipeline Infrastructure operating segment.  The Company determined there was no impairment as a result of its annual goodwill impairment test for all of its reporting units for both of the years ended December 31, 2023 and 2022.As of December 31, 2024 and 2023, management believes that the recorded balances of goodwill and intangible assets are recoverable; however, significant changes in the assumptions or estimates used in the Company’s analyses, such as a reduction in profitability and/or cash flows, changes in market, regulatory or other conditions, including decreases in project activity levels and/or the effects of elevated levels of inflation, interest rates or other regulatory or market disruptions, including from geopolitical events and/or changes in asset characteristics, could result in non-cash goodwill and/or intangible asset impairment charges in future periods.Business CombinationsThe determination of the fair value of net assets acquired in a business combination requires estimates and judgments of future cash flow expectations for the acquired business and the related identifiable tangible and intangible assets.  Fair values of net assets acquired are calculated using expected cash flows and industry-standard valuation techniques.  For current assets and current liabilities, book value is generally assumed to approximate fair value.  Goodwill is the amount by which consideration paid for an acquired entity exceeds the fair value of its acquired net assets.  A bargain purchase gain results when the fair value of an acquired entity’s net assets exceeds its purchase price, and is recorded within other income in the consolidated statements of operations.  Acquisition costs are expensed as incurred and are included within general and administrative expenses in the consolidated statements of operations.  For both the years ended December 31, 2024 and 2023, the Company incurred approximately $3 million of acquisition costs associated with its completed acquisitions, and for the year ended December 31, 2022, the Company incurred approximately $17 million of such costs.Due to the time required to gather and analyze the necessary data for each acquisition, U.S. GAAP provides