Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 1108

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1A
Chunk 1108
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 value of unbilled work for projects with performance obligations recognized over time.  Unbilled receivables, which are included in contract assets, include amounts for work performed for which the Company has an unconditional right to receive payment and that are not subject to the completion of any other specific task, other than the billing itself.  Retainage represents a portion of the contract amount that has been billed, but for which the contract allows the customer to retain a portion of the billed amount until final contract settlement, which is generally from 5% to 10% of contract billings.  Retainage is not considered to be a significant financing component because the intent is to protect the customer.  Unbilled receivables and retainage amounts are generally classified as current assets within the Company’s consolidated balance sheets.  Retainage that has been billed, but is not due until completion of performance and acceptance by customers, is generally expected to be collected within one year.  Accounts receivable balances expected to be collected beyond one year are recorded within other long-term assets.  As of December 31, 2024, 2023 and 2022, contract assets totaled approximately $1,555.8 million, $1,756.4 million and $1,729.9 million, respectively.For the years ended December 31, 2024 and 2023, provisions for credit losses, including certain project-specific reserves, totaled approximately $4.8 million and $9.5 million, respectively, and amounts charged against the allowance, including direct write-offs, totaled 

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approximately $0.8 million and $2.8 million, respectively.  Impairment losses on contract assets were not material in any 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