Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 163

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 4
Chunk 163
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 in the estimated useful lives of such machinery and equipment.  The resulting change in accounting estimate was applied on a prospective basis.  For the year ended December 31, 2024, the effect of this change was a net reduction in depreciation expense of approximately $34 million.Goodwill and Indefinite-Lived Intangible AssetsThe Company has goodwill and indefinite-lived intangible assets that have been recorded in connection with its acquisitions of businesses.  Goodwill and indefinite-lived intangible assets are not amortized, but instead are tested for impairment at least annually.  The Company performs its annual impairment tests of goodwill and indefinite-lived intangible assets during the fourth quarter of each year, and on a quarterly basis, monitors these assets for potential indicators of impairment.  During the fourth quarter of 2024, the Company changed the estimated life of its remaining non-amortizing trade name from indefinite to finite-lived and began amortizing it over its remaining useful life of 12 years.  See Note 3 - Acquisitions, Goodwill and Other Intangible Assets, Net for additional information.  See below for details of the Company’s impairment testing for the years ended December 31, 2024, 2023 and 2022.Goodwill is required to be tested for impairment at the reporting unit level.  A reporting unit is an operating segment, or one level below the operating segment, which is referred to as a component.  Management identifies its reporting units by assessing whether components (i) have discrete financial information available; (ii) engage in business activities; and (iii) have a segment manager that regularly reviews the component’s operating results.  If two or more components are deemed economically similar, those components are aggregated into one reporting unit when performing the annual goodwill impairment test.  All of the Company’s reporting units are each composed of one component.During each of the three years in the period ended December 31, 2024, management performed a qualitative assessment for its goodwill and indefinite-lived intangible assets by examining relevant events and circumstances that could have an effect on their fair values, such as: macroeconomic trends and events, including: levels of inflation, market interest rates and/or supply chain disruptions; industry and/or market conditions, including the potential effects of regulatory and other uncertainty, including uncertainty related to the implementation and pace of spending under governmental infrastructure programs and initiatives; project permitting uncertainty; financial, competitive and other conditions, including declines in the operating performance of our reporting units; entity-specific events; the potential effects of longer