Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 108

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 108
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 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.  For the nine months ended September 30, 2025, provisions for credit losses totaled a recovery of approximately $0.7 million and for the nine months ended September 30, 2024, provisions for credit losses totaled approximately $2.2 million, both of which included certain project-specific reserves.  Impairment losses on contract assets were not material in either period.

15

Contract liabilities, which are generally classified within current liabilities on the Company’s consolidated balance sheets, consist primarily of deferred revenue and also include the amount of any accrued project losses.  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.  Total contract liabilities, including accrued project losses, totaled approximately $730.3 million and $735.6 million as of September 30, 2025 and December 31, 2024, respectively, of which deferred revenue comprised approximately $721.1 million and $725.1 million, respectively.  As of September 30, 2025, the increase in contract assets was driven primarily by ordinary course project activity, including in connection with increased project volume primarily within the Company’s Communications segment.  For the nine months ended September 30, 2025 and 2024, the Company recognized revenue of approximately $695.4 million and $390.3 million, respectively, related to amounts that were included in deferred revenue as of December 31, 2024 and December 31, 2023, 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 nine months ended September 30, 2025 and 2024, the Company sold approximately $378 million and $338 million, respectively, of receivables under financing arrangements for which it continues