Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 166

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 4
Chunk 166
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 Company’s analyses, such as a reduction in profitability and/or cash flows, changes in market, regulatory or other conditions, including decreases in project activity levels and/or the effects of elevated levels of inflation, interest rates or other regulatory or market disruptions, including from geopolitical events and/or changes in asset characteristics, could result in non-cash goodwill and/or intangible asset impairment charges in future periods.Business CombinationsThe determination of the fair value of net assets acquired in a business combination requires estimates and judgments of future cash flow expectations for the acquired business and the related identifiable tangible and intangible assets.  Fair values of net assets acquired are calculated using expected cash flows and industry-standard valuation techniques.  For current assets and current liabilities, book value is generally assumed to approximate fair value.  Goodwill is the amount by which consideration paid for an acquired entity exceeds the fair value of its acquired net assets.  A bargain purchase gain results when the fair value of an acquired entity’s net assets exceeds its purchase price, and is recorded within other income in the consolidated statements of operations.  Acquisition costs are expensed as incurred and are included within general and administrative expenses in the consolidated statements of operations.  For both the years ended December 31, 2024 and 2023, the Company incurred approximately $3 million of acquisition costs associated with its completed acquisitions, and for the year ended December 31, 2022, the Company incurred approximately $17 million of such costs.Due to the time required to gather and analyze the necessary data for each acquisition, U.S. GAAP provides a “measurement period” of up to one year from the date of acquisition in which to finalize these fair value determinations.  During the measurement period, preliminary fair value estimates may be revised if new information is obtained about the facts and circumstances existing as of the date of acquisition, or based on the final net assets and working capital of the acquired business, as prescribed in the applicable purchase agreement.  Such adjustments may result in the recognition of, or an adjustment to the fair values of, acquisition-related assets and liabilities and/or consideration paid, and are referred to as “measurement period” adjustments.  Measurement period adjustments are recorded to goodwill.  Other changes to fair value estimates, including 

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those relating to facts and circumstances that occur subsequent to the date of acquisition, are reflected as income or expense in the consolidated statement of operations, as appropriate.Consideration paid generally consists of cash and, from time to time, shares of our common stock, and potential future payments that