Company: MTZ
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000015615-25-000052
Chunk: 17

Company: MASTEC INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 discount rate, which was 10.0% as of March 31, 2025, and probability-weighted projections of EBITDA.  Significant changes in any of these assumptions could result in significantly higher or lower estimated Earn-out liabilities.  The ultimate payment amounts for the Company’s Earn-out liabilities will be determined based on the actual results achieved by the acquired businesses.  As of March 31, 2025, the range of potential undiscounted Earn-out liabilities was estimated to be between $35 million and $125 million; however, there is no maximum payment amount.Earn-out activity consists primarily of additions from new business combinations; changes in the expected fair value of future payment obligations; and payments.  The following table provides a reconciliation of changes in Earn-out liabilities measured at fair value for the periods indicated (in millions):Three Months Ended March 31, 20252024Balance as of beginning of period (a)$112.7 $77.4 Fair value adjustments (b)0.9 (6.1)Payments(0.5)— Balance as of end of period (a)$113.1 $71.3 (a)Earn-out liabilities included within other current liabilities totaled approximately $61.0 million and $70.0 million as of March 31, 2025 and December 31, 2024, respectively.(b)For the three month period ended March 31, 2025, fair value adjustments related primarily to increases within the Company’s Clean Energy and Infrastructure and Pipeline Infrastructure segments, which were partially offset by decreases related to acquisitions within the Company’s Power Delivery segment.  For the three month period ended March 31, 2024, such adjustments related primarily to acquisitions within the Company’s Communications segment.

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Equity InvestmentsThe Company’s equity investments as of March 31, 2025 include: (i) the Company’s 33% equity interests in Trans-Pecos Pipeline, LLC (“TPP”) and Comanche Trail Pipeline, LLC (“CTP,” and together with TPP, the “Waha JVs”); (ii) a 15% equity interest in Cross Country Infrastructure Services, Inc. (“CCI”); (iii) the Company’s 50% equity interests in each of FM Technology Holdings, LLC, FM USA Holdings, LLC and All Communications Solutions Holdings, LLC, collectively “FM Tech”; (iv) the Company’s interests in certain proportionately consolidated non-controlled contractual joint ventures; and (v)