Company: MTZ
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000015615-25-000052
Chunk: 105

Company: MASTEC INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 105
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 to the completion of any other specific task, other than the billing itself.  Retainage represents a portion of the contract amount that has been billed, but for which the contract allows the customer to retain a portion of the billed amount until final contract settlement.  For the three month period ended March 31, 2025, provisions for credit losses totaled a recovery of approximately $0.7 million and for the three month period ended March 31, 2024, provisions for credit losses totaled approximately $5.2 million, both of which included certain project-specific reserves.  Impairment losses on contract assets were not material in either period.Contract liabilities, which are generally classified within current liabilities on the Company’s consolidated balance sheets, consist primarily of deferred revenue.  Under certain contracts, the Company may be entitled to invoice the customer and receive payments in advance of performing the related contract work.  In those instances, the Company recognizes a liability for advance billings in excess of revenue recognized, which is referred to as deferred revenue.  Contract liabilities also include the amount of any accrued project losses.  Total contract liabilities, including accrued project losses, totaled approximately $766.2 million and $735.6 million as of March 31, 2025 and December 31, 2024, respectively, of which deferred revenue comprised approximately $753.5 million and $725.1 million, respectively.  For the three month periods ended March 31, 2025 and 2024, the Company recognized revenue of approximately $493.8 million and $292.1 million, respectively, related to amounts that were included in deferred revenue as of the end of each respective prior year, resulting primarily from the advancement of physical progress on the related projects during the respective periods.The Company is party to certain non-recourse financing arrangements in the ordinary course of business, under which certain receivables are sold to a financial institution in return for a nominal fee.  The Company has certain additional non-recourse financing arrangements under which it continues to manage collections for the transferred receivables, and for which the corresponding servicing assets or liabilities are not material.  For the three month periods ended March 31, 2025 and 2024, the Company sold approximately $104 million and $98 million, respectively, of receivables under financing arrangements for which it continues to manage collections for the transferred receivable, and, as of March 31, 2025 and December 31, 2024, outstanding sold receiv