Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 224

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 5
Chunk 224
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4 was approximately $113 million.  Of this amount, approximately $21 million represents the liability for earned amounts.  The remainder is management’s estimate of Earn-out liabilities that are contingent upon future performance.  For the years ended December 31, 2024, 2023 and 2022, we made $26 million, $39 million and $38 million, respectively, of payments related to our Earn-out liabilities.

Our acquisition of HMG in 2021 provided for certain additional payments to be made to the sellers if certain acquired receivables are collected, which we refer to as the “Additional Payments.”  As of December 31, 2024, the estimated fair value of remaining Additional Payments was approximately $14 million, which for the year ended December 31, 2024, includes the effect of fair value adjustments related to the contingent shares totaling losses of approximately $5.5 million.  The number of shares that would be paid in connection with the remaining Additional Payments as of December 31, 2024 is approximately 50,000 shares.

Income Taxes.  Tax payments, net of tax refunds, totaled $44 million, $10 million and $9 million for the years ended December 31, 2024, 2023 and 2022.  Our tax payments vary with changes in taxable income and earnings based on estimates of full year taxable income activity and estimated tax rates.

Working Capital.  We need working capital to support seasonal and other variations in our business, primarily related to the effects of weather conditions on outdoor construction and maintenance work and the spending patterns of our customers, both of which influence the timing of associated spending to support customer demand.  Working capital needs are generally higher during the summer and fall months due to increased demand for our services when favorable weather conditions exist in many of the regions in which we operate.  Conversely, working capital needs are typically converted to cash during the winter months.  These seasonal trends, however, can be offset by changes in the timing of projects, which can be affected by project delays or accelerations and/or other factors that may affect customer spending.

Working capital requirements also tend to increase when we commence multiple projects or particularly large projects because labor, including subcontractor costs, and certain other costs, including inventory and materials requirements, typically become payable before the receivables resulting from work performed are collected.  The timing of billings and project close-outs can also contribute to changes in billed and unbilled revenue.  As of December 31,