Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 2710

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 2710
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 assets.  Leasehold improvements are depreciated over the shorter of the term of the lease or the estimated useful lives of the improvements.  Expenditures for repairs and maintenance are charged to expense as incurred.  Expenditures for betterments and major improvements that extend the life of the related assets are capitalized and depreciated over the remaining useful lives of the assets.  The carrying amounts of assets sold or retired and the related accumulated depreciation are eliminated in the year of disposal.  Gains or losses, net, from the sale of property and equipment are included within general and administrative expenses.  When the Company identifies assets to be sold, those assets are valued based on their estimated fair value less costs to sell and classified as held-for-sale and depreciation is no longer recorded.  Finite-lived intangible assets are amortized over their useful lives, which are generally based on contractual or legal rights, in a manner consistent with the pattern in which the related benefits are expected to be consumed.Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.  If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared with the asset’s carrying amount to determine if there has been an impairment, which is calculated as the difference between the fair value of an asset and its carrying value.  Estimates of future undiscounted cash flows are based on expected revenue and operating costs for the business as well as anticipated future economic conditions, which are Level 3 inputs.  During the three years in the period ended December 31, 2024, there were no material impairments of long-lived assets.During the third quarter of 2024, based on the Company’s experience with the duration over which certain machinery and equipment is expected to be utilized, the Company completed a review of the estimated useful lives of certain machinery and equipment, which resulted in a net increase 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