Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 2056

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 3
Chunk 2056
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  The Company manages certain of its insurance liabilities indirectly through its wholly-owned captive insurance company, which reimburses claims up to the applicable insurance limits.  Captive insurance-related cash balances totaled approximately $2.2 million and $1.2 million as of December 31, 2024 and 2023, respectively, which amounts are generally not available for use in the Company’s other operations.As of December 31, 2024 and 2023, MasTec’s estimated liability for unpaid claims and associated expenses, including incurred but not reported losses related to these policies, totaled $251.0 million and $209.7 million, respectively, of which $184.1 million and $141.0 million, respectively, were reflected within other long-term liabilities in the consolidated balance sheets.  MasTec also maintains an insurance policy with respect to employee group medical claims, which is subject to annual per employee maximum losses.  MasTec’s estimated liability for employee group medical claims totaled $4.7 million and $4.1 million as of December 31, 2024 and 2023, respectively.The Company is required to post collateral, generally in the form of letters of credit, surety bonds and cash to certain of its insurance carriers.  Insurance-related letters of credit for the Company’s workers’ compensation, general liability and automobile liability policies amounted to 

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$8.7 million and $9.6 million as of December 31, 2024 and 2023, respectively.  Outstanding surety bonds related to self-insurance programs amounted to $196.3 million and $192.7 million as of December 31, 2024 and 2023, respectively.Employment Agreements.  The Company has employment agreements with certain executives and other employees, which provide for compensation and certain other benefits and for severance payments under certain circumstances.  Certain employment agreements also contain clauses that become effective upon a change in control of the Company.  Upon the occurrence of any of the defined events in the various employment agreements, the Company would be obligated to pay certain amounts to the related employees, which vary with the level of the employees’ respective responsibility.Collective Bargaining Agreements and Multiemployer Plans.  As discussed in Note 1 - Business, Basis of Presentation and Significant Accounting Policies and Note 10 - Other Retirement Plans, certain of MasTec’s subsidiaries are party to various collective bargaining agreements with unions representing certain of their employees, which require the Company to pay specified wages,