Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 155

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 4
Chunk 155
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, as warranted.  Management reviews estimates of total contract transaction price and costs on an ongoing basis.  Changes in job performance, job conditions and management’s assessment of the estimated amount and probability of variable consideration are factors that influence estimates of the total contract transaction price, total costs to complete those contracts and the Company’s profit recognition.  Changes in these factors could result in revisions to the amount of revenue recognized in the period in which the revisions are determined, which revisions could materially affect the Company’s consolidated results of operations for that period.  Provisions for losses on uncompleted contracts are recorded in the period in which such losses are estimated based on management’s experience and judgment.  In each of the years ended December 31, 2024, 2023 and 2022, project profit was affected by less than 5% as a result of changes in contract estimates included in projects that were in process as of December 31, 2023, 2022 and 2021.  Changes in recognized revenue, net, as a result of changes in total contract transaction price estimates, including from variable consideration, and/or changes in cost estimates, related to performance obligations satisfied or partially satisfied in prior periods, for both the years ended December 31, 2024 and 2022 positively affected revenue by approximately 0.1%, and for the year ended December 31, 2023, positively affected revenue by approximately 0.2%.The Company may incur certain costs that can be capitalized, such as initial set-up or mobilization costs.  Such capitalized costs, which are amortized over the life of the respective projects, were not material as of December 31, 2024 or 2023.The timing of customer billings is generally dependent upon advance billing terms, milestone billings based on completion of certain phases of work, or when services are provided.  Under the typical payment terms of master and other service agreements and contracts for specific projects, the customer makes progress payments based on quantifiable measures of performance by the Company as defined by each specific agreement.  Progress payments, generally net of amounts retained, are paid by the customer over the duration of the contract.  For install-to-the-home and certain other contracts and services, work orders are billed and paid as completed.  Amounts billed and due from customers, as well as the value of contract assets, are generally classified within current assets in the consolidated balance sheets.  See Note 5 - Accounts Receivable, Net of Allowance, and Contract Assets