Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 1592

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1C
Chunk 1592
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-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 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