Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 2628

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 2628
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 Note 1 - Business, Basis of Presentation and Significant Accounting Policies for additional information.  As of December 31, 2024, management determined that the Company is the primary beneficiary of two of its VIEs, and accordingly, has consolidated these entities within the Company’s financial statements, with the other parties’ interests accounted for as non-controlling interests.The Company’s consolidated VIEs include an electric utility contractor in which the Company acquired a 49% interest in the first quarter of 2024.  As of December 31, 2024 and 2023, the carrying values of assets associated with the Company’s consolidated VIEs totaled approximately $134.8 million and $1.7 million, respectively, which amounts consisted primarily of accounts receivable, net of allowance and contract assets.  The carrying values of liabilities associated with the Company’s consolidated VIEs totaled approximately $132.8 million and $1.6 million as of December 31, 2024 and 2023, respectively, which amounts consisted primarily of accounts payable.  The Company has not provided, nor is it obligated to provide, any financial support to any of its consolidated VIEs.The carrying values of the Company’s VIEs that are not consolidated totaled approximately $23 million as of both December 31, 2024 and 2023, which amounts are recorded within other long-term assets in the consolidated balance sheets.  Management believes that the Company’s maximum exposure to loss for its non-consolidated VIEs, inclusive of additional financing commitments, approximated $34 million and $35 million as of  December 31, 2024 and 2023, respectively.Senior NotesIn the first quarter of 2024, management reevaluated its fair value hierarchy determination for its senior notes to better align with the valuation hierarchy of the fair value guidance, which resulted in an update of the Level determination from Level 1 inputs to Level 2 inputs.  The update had no effect on the reported fair values of the related senior notes.  As of December 31, 2024, the estimated fair values of the Company’s senior notes were determined based on an exit price approach using Level 2 inputs.  See Note 7 - Debt for additional information pertaining to the Company’s senior notes.

Note 5 – Accounts Receivable, Net of Allowance, and Contract Assets and Liabilities 

The following table provides details of accounts receivable, net of allowance, and contract assets (together “