Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 2630

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 2630
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 of the years ended December 31, 2024, 2023 or 2022.Contract liabilities, which are generally classified within current liabilities on the Company’s consolidated balance sheets, consist primarily of deferred revenue.  Under certain contracts, the Company may be entitled to invoice the customer and receive payments in advance of performing the related contract work.  In those instances, the Company recognizes a liability for advance billings in excess of revenue recognized, which is referred to as deferred revenue.  Deferred revenue is not considered to be a significant financing component because it is generally used to meet working capital demands that can be higher in the early stages of a contract.  Contract liabilities also include the amount of any accrued project losses.  Total contract liabilities, including accrued project losses, totaled approximately $735.6 million, $481.0 million and $406.2 million as of December 31, 2024, 2023 and 2022, respectively, of which deferred revenue comprised approximately $725.1 million, $475.2 million and $390.3 million, respectively.  The increase in contract liabilities as of December 31, 2024 was driven primarily by ordinary course project activity, primarily in connection with new project starts within the Company’s Clean Energy and Infrastructure segment.  For the years ended December 31, 2024, 2023 and 2022, the Company recognized revenue of approximately $416.8 million, $363.3 million and $270.7 million, respectively, related to amounts that were included in deferred revenue as of December 31, 2023, 2022 and 2021, respectively, resulting primarily from the advancement of physical progress on the related projects during the respective periods.The Company is party to certain non-recourse financing arrangements in the ordinary course of business, under which certain receivables are sold to a financial institution in return for a nominal fee.  The Company has certain additional non-recourse financing arrangements under which it continues to manage collections for the transferred receivables, and for which the corresponding servicing assets or liabilities are not material.  For the years ended December 31, 2024 and 2023, the Company sold approximately $442 million and $131 million, respectively, of receivables under financing arrangements for which it continues to manage collections for the transferred receivable, and, as of December 31, 2024 and 2023, outstanding sold receivables related thereto totaled approximately $84 million and $