Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 2840

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 2840
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 net, as of December 31, 2024$534.2 $163.0 $30.2 $727.4 Remaining weighted average amortization, in years1212812(a)    Includes approximately $34.5 million of a non-amortizing trade name as of both December 31, 2023 and 2022.  In connection with its fourth quarter 2024 assessment of goodwill and indefinite-lived intangible assets, management reassessed the indefinite-life classification of its $34.5 million non-amortizing trade name intangible asset.  Management determined that, based on changes in the asset’s characteristics, a finite-life classification for this asset was more appropriate.  As a result, the Company changed the classification of this intangible asset from indefinite-lived to finite-lived and began amortizing it in the fourth quarter of 2024, at which time its estimated remaining useful life was approximately 12 years.(b)    Consists principally of pre-qualifications and non-compete agreements.

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Expected future amortization expense as of December 31, 2024 is summarized in the following table (in millions):Amortization Expense2025$130.4 2026107.5 202796.3 202880.8 202968.4 Thereafter244.0 Total$727.4 Recent AcquisitionsThe Company seeks to grow and diversify its business both organically and through acquisitions and/or strategic arrangements in order to deepen its market presence and customer base, broaden its geographic reach and expand its service offerings.  Acquisitions are funded with cash on hand, borrowings under the Company’s senior unsecured credit facility and other debt financing and, for certain acquisitions, with shares of the Company’s common stock, and are generally subject to customary purchase price adjustments.  The goodwill balances for each of the respective acquisitions represent the estimated values of each acquired company’s geographic presence in key markets, assembled workforce, synergies expected to be achieved from the combined operations of each of the acquired companies and MasTec, as well as the acquired company’s industry-specific project management expertise.2024 Acquisitions.  During 2024, MasTec completed three acquisitions, which included all of the equity interests of a construction company focused on underground utility infrastructure for industrial and municipal projects, with expertise in data center utility systems, which acquisition is included within the Company’s Power Delivery segment, and was effective in July; the acquisition of certain operations of a heavy