Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 1649

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1C
Chunk 1649
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(10.0)24.7 (37.9)Stock basis adjustment0.0 4.9 0.0 Valuation allowance for deferred tax assets0.8 0.5 19.0 Effective income tax rate20.5 %42.8 %21.3 %A reconciliation of the beginning and ending amount of uncertain tax positions, excluding interest and penalties, follows in the table below (in millions).For the Years Ended December 31,202420232022Beginning balance$60.9 $39.3 $21.4 Additions based on tax positions related to the current year15.5 16.6 8.0 Additions for tax positions of prior years6.6 9.5 15.9 Lapse of statute of limitations(12.7)(4.5)(6.0)Ending balance$70.3 $60.9 $39.3 The Company classifies interest, penalties and recoveries related to uncertain tax positions as a component of income tax expense in the consolidated statements of operations.  For the years ended December 31, 2024, 2023 and 2022, interest and penalties totaled approximately $0.7 million, $2.6 million and $0.7 million, respectively.  Accrued interest and penalties related to uncertain tax positions were $7.8 million and $5.9 million as of December 31, 2024 and 2023, respectively.  The effect on the Company’s tax rate if it were to recognize its gross unrecognized tax benefits as of December 31, 2024 approximates $78.1 million, including interest and penalties.  While it is possible that there could be audit settlements and/or lapses in certain statutes of limitation relating to uncertain tax positions, management has determined that it is too difficult to predict the outcome of such matters.  During the next 12 months, the Company expects to settle state income tax audits and the applicable statutes of limitations may expire for federal and state uncertain tax positions, which may reduce uncertain tax positions.  These reductions would be partially offset by additions, if any, of new uncertain tax positions expected in the next 12 months.

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The IRS has examined the Company’s federal income tax returns through 2017.  Certain foreign and state taxing authorities are examining various years.  The final outcome of these examinations is not yet determinable.