Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 1499

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1C
Chunk 1499
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 of the solar farm.Following a series of post-trial motions, the Court ruled that the compensatory damages were excessive and ordered a new trial on the amount of compensatory and punitive damages unless plaintiffs agreed to significantly reduced damages.In the first quarter of 2024, the plaintiffs notified the Court that they did not agree to the reduced damages, and the Court scheduled a new trial to begin in April 2025.  In January 2025, however, the parties agreed to a negotiated settlement and mutual releases in exchange for the payment to the plaintiffs by the IEA Entities of an immaterial amount of cash.Other Commitments and ContingenciesLeases.  In the ordinary course of business, the Company enters into non-cancelable operating leases for certain of its facility, vehicle and equipment needs, including certain related party leases.  See Note 8 - Lease Obligations and Note 15 - Related Party Transactions.Letters of Credit.  In the ordinary course of business, the Company is required to post letters of credit for its insurance carriers and surety bond providers and in support of performance under certain contracts as well as certain obligations associated with the Company’s equity investments and other strategic arrangements, including its variable interest entities.  Such letters of credit are generally issued by a bank or similar financial institution.  The letter of credit commits the issuer to pay specified amounts to the holder of the letter of credit under certain conditions.  If this were to occur, the Company would be required to reimburse the issuer of the letter of credit, which, depending upon the circumstances, could result in a charge to earnings.  As of December 31, 2024 and 2023, there were $81.7 million and $82.1 million, respectively, of letters of credit issued under the Company’s credit facilities.  Letter of credit claims have historically not been material.  The Company is not aware of any material claims relating to its outstanding letters of credit as of December 31, 2024 or 2023.Performance and Payment Bonds.  In the ordinary course of business, MasTec is required by certain customers to provide performance and payment bonds for contractual commitments related to its projects.  These bonds provide a guarantee to the customer that the Company will perform under the terms of a contract and that the Company will pay its subcontractors and vendors.  If the Company fails to perform under a contract or to pay its subcontractors and vendors, the customer may demand that the surety make payments or provide services under the