Company: MTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000015615-25-000079
Chunk: 147

Company: MASTEC INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 2
Chunk 147
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 Insurance-related letters of credit for the Company’s workers’ compensation, general liability and automobile liability policies amounted to $7.5 million and $8.7 million as of June 30, 2025 and December 31, 2024, respectively.  Outstanding surety bonds related to self-insurance programs amounted to $193.7 million and $196.3 million as of June 30, 2025 and December 31, 2024, respectively.Collective Bargaining Agreements and Multiemployer Plans.  In connection with the IEA acquisition, the Company assumed a multiemployer pension plan withdrawal liability (the “IEA withdrawal liability”), under which IEA was obligated to make monthly payments of approximately $10,000.  In January 2025, the Company settled its IEA withdrawal liability by issuing a lump-sum payment for the remaining obligation of $1.3 million.  See Note 14 – Commitments and Contingencies contained within the Company’s audited consolidated financial statements filed with its 2024 Form 10-K for additional information regarding the Company’s multiemployer pension plans.Indemnities.  The Company generally indemnifies its customers for the services it provides under its contracts, as well as other specified liabilities, which may subject the Company to indemnity claims, liabilities and related litigation.  As of both June 30, 2025 and December 31, 2024, the Company had accrued project close-out liabilities of approximately $20 million.  The Company is not aware of any other material asserted or unasserted claims in connection with its potential indemnity obligations.Other Guarantees.  From time to time in the ordinary course of its business, MasTec guarantees the obligations of its subsidiaries, including obligations under certain contracts with customers, certain lease obligations, and in some states, obligations in connection with obtaining contractors’ licenses.  MasTec has also issued performance and other guarantees in connection with certain of its equity investments.  MasTec also generally warrants the work it performs following substantial completion of a project.  Much of the work performed by the Company is evaluated for defects shortly after the work is completed.  If warranty claims occur, the Company could be required to repair or replace warrantied items, or, if 

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customers elect to repair or replace the warrantied item using the services of another provider, the Company could be required to pay for the cost of the repair or replacement.  Warranty claims have historically not been material.Concentrations of