Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 87

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 2
Chunk 87
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 income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the Company's financial statements.The Company and its subsidiaries file income tax returns in numerous tax jurisdictions, including U.S. federal, most U.S. states and certain foreign jurisdictions.  Although management believes its calculations for its tax returns are accurate and the positions taken thereon are reasonable, the final outcome of income tax examinations could be materially different from the resolution management currently anticipates and the estimates that are reflected in the Company’s consolidated financial statements, which could materially affect the Company’s results of operations, cash flows and liquidity in a particular period.  To the extent interest and penalties are assessed by taxing authorities, such amounts are accrued and included within income tax expense.Stock-Based CompensationThe Company has certain stock-based compensation plans, under which restricted stock awards and restricted stock units (together, “restricted shares”) are available for issuance to eligible participants.  Non-cash stock-based compensation expense is included within general and administrative expense in the consolidated statements of operations.  Share-based payments, to the extent they are compensatory, are recognized based on their grant date fair values.  Forfeitures are recorded as they occur.  The Company records a deferred tax asset, or future tax benefit, based on the amount of share-based compensation recognized in the financial statements over the vesting period of share-based awards.  The tax effects of 

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differences between the fair value of a share-based award on the date of vesting and the date of grant, also referred to as excess tax benefits or tax deficiencies, are recognized within the provision for income taxes in the period such vesting occurs.Grants of restricted shares are valued based on the closing market share price of MasTec’s common stock as reported on the New York Stock Exchange (the “market price”) on the date of grant.  Compensation expense arising from restricted shares is recognized on a straight-line basis over the vesting period.  Grants of restricted shares have cliff vesting terms, which generally vest over a period of three years.  Upon vesting, some of the underlying shares may be sold to cover the required tax withholdings.  Some participants may choose the net share settlement method to cover withholding tax requirements, in which case shares are not issued, but are treated as common stock repurchases in the consolidated financial statements, as they reduce the number of shares that would have been issued upon vesting.  The Company then pays the corresponding withholding taxes to the