Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 811

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 811
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 orders and/or claims primarily related to certain projects in the Company’s Clean Energy and Infrastructure and Power Delivery segments.  The Company actively engages with its customers to complete the final approval process for such amounts and generally expects these processes to be completed within one year.  Amounts ultimately realized upon final agreement by customers could be higher or lower than such estimated amounts.Allowance for Credit LossesThe Company maintains an allowance for credit losses for its financial instruments, which are primarily composed of accounts receivable and contract assets.  The measurement and recognition of credit losses involves the use of judgment and incorporates management’s estimate of expected lifetime credit losses based on historical experience and trends, current conditions and reasonable and supportable forecasts.  Management’s assessment of expected credit losses includes consideration of current and expected economic, market and industry factors affecting the Company’s customers, including their financial condition; the aging of account balances; historical credit loss experience; customer concentrations; customer credit-worthiness; availability of mechanics’ and other liens; and the existence of payment bonds and other sources of payment, among other factors.  Management evaluates its experience with historical losses and then applies this historical loss ratio to financial assets with similar characteristics.  The Company’s historical loss ratio or its determination of risk pools may be adjusted for changes in customer, economic, market or other circumstances.  The Company may also establish an allowance for credit losses for specific receivables when it is probable that a specific receivable will not be collected and the loss can be reasonably estimated.  Amounts are written off against the allowance when they are considered to be uncollectible, and reversals of previously reserved amounts are recognized if a specifically reserved item is settled for an amount exceeding the previous estimate.Estimates of expected credit losses could be affected by many factors, including, but not limited to: changes in credit loss experience, changes to the risk characteristics of the Company’s financial instrument portfolio, developing trends, including changes in management’s expectations of future economic, industry or other conditions and/or changes in credit quality or unanticipated financial difficulties affecting the Company’s customers.  In addition, if anticipated recoveries in existing negotiations or bankruptcies fail to materialize, additional allowances may be required.  Estimates of collectibility are subject to significant change during times of economic weakness or uncertainty in either the overall economy or within the industries served by MasTec.  Management actively monitors these factors and assesses the sufficiency of its allowance for credit losses on an ongoing basis, including the potential effects of trends in end-market volatility and/or other macro