Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 842

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 842
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 and for the year ended December 31, 2023, the Company’s consolidated results of operations included acquisition-related net losses of approximately $40.0 million, based on the Company’s consolidated effective tax rates.  These acquisition-related results include amortization of acquired intangible assets and certain acquisition integration costs, and exclude the effects of interest expense associated with consideration paid for the related acquisitions.Revenue and net income from the Company’s 2024 acquisitions included within the Company’s consolidated results of operations for the year ended December 31, 2024 totaled $37.0 million and $2.3 million, respectively.Acquisition and integration costs.  In 2021, the Company initiated a significant transformation of its end-market business operations to position the Company for expected future growth opportunities.  This transformation included significant business combination activity, including expansion of the Company’s scale and capacity in renewable energy, power delivery, heavy civil and telecommunications services, which activity resulted in significant acquisition and integration costs in prior periods.  These acquisition and integration activities were completed in the fourth quarter of 2023.  For the year ended December 31, 2023, such acquisition and integration costs totaled approximately $71.9 million, of which $64.1 million was included within general and administrative expenses, and of which $7.8 million was included within costs of revenue, excluding depreciation and amortization.  Acquisition and integration costs for the year ended December 31, 2022 totaled approximately $86.0 million, of which $52.0 million was included within general and administrative expenses, and of which $29.3 million and $4.7 million were included within costs of revenue, excluding depreciation and amortization, and other expense, respectively.  As of December 31, 2023, approximately $0.3 million was included within current liabilities within the consolidated balance sheets related to such costs.

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Note 4 – Fair Value of Financial Instruments

Acquisition-Related Contingent ConsiderationAcquisition-related contingent consideration is composed of earn-outs, which represent the estimated fair value of future amounts payable for businesses, which the Company refers to as “Earn-outs,” that are contingent upon the acquired businesses achieving certain levels of earnings in the future.  As of December 31, 2024 and 2023, the estimated fair value of the Company’s Earn-out liabilities totaled $112.7 million and $77.4 million, respectively.  Earn-out liabilities included within other current liabilities totaled approximately $70.