Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 812

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 812
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economic factors on the credit quality of the Company’s customers and/or its financial assets, such as the current market environment of elevated interest rates and inflation.InventoriesInventories primarily consist of materials and supplies for construction and installation projects, which are valued at the lower of cost or net realizable value using the average cost or specific identification methods of costing.  For materials or supplies purchased on behalf of specific customers or projects, loss of the customer or cancellation of the project could result in an impairment of the value of materials purchased.  The value of inventory may also decrease due to obsolescence, physical deterioration, damage, changes in price levels, or other causes.Cash and Cash EquivalentsThe Company considers highly liquid investments with original maturities of less than three months to be cash equivalents.  The balances in certain of the Company’s bank accounts exceed federally insured limits.  Cash and cash equivalents consist primarily of interest-bearing demand 

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deposits that are maintained at financial institutions that management considers to be of high credit quality.  Included in the Company’s cash balances as of December 31, 2024 and 2023 are amounts held by entities that are proportionately consolidated totaling $46.7 million and $38.1 million, respectively.  These amounts are available to support the operations of those entities, but are not available for the Company’s other operations.Fair Value of Financial InstrumentsThe Company’s financial instruments are primarily composed of cash and cash equivalents, accounts receivable and contract assets, notes receivable, cash collateral deposited with insurance carriers, life insurance assets, equity investments, certain other assets and investments, deferred compensation plan assets and liabilities, accounts payable and other current liabilities, acquisition-related contingent consideration and other liabilities, and debt obligations.Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability, also referred to as the “exit price,” in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  The fair value guidance establishes a valuation hierarchy, which requires maximizing the use of observable inputs when measuring fair value.  The three levels of inputs that may be used are: (i) Level 1 - quoted market prices in active markets for identical assets or liabilities; (ii) Level 2 - observable market-based inputs or other observable inputs, including quoted market prices for identical or similar assets or liabilities in markets that are not active; and (iii) Level 3 - significant unobservable inputs that