Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 1068

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1A
Chunk 1068
---
 install-to-the-home and certain other wireless services in the Company’s Communications segment.  Point in time revenue is recognized when the work order has been fulfilled, which, for the majority of the Company’s point in time revenue, is the same day it is initiated.  Point in time revenue accounted for approximately 2% of consolidated revenue for both the years ended December 31, 2024 and 2023, and totaled approximately 4% for the year ended December 31, 2022.Contract costs include all direct materials, labor, equipment and subcontracted costs, as well as indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and the operational costs of capital equipment.  Cost estimation processes used for recognizing revenue over time under the cost-to-cost method require management to make significant assumptions and judgments.  Total transaction price and cost estimation processes are based primarily on the professional knowledge and experience of the Company’s project managers, operational and financial professionals, and other professional expertise, as warranted.  Management reviews estimates of total contract transaction price and costs on an ongoing basis.  Changes in job performance, job conditions and management’s assessment of the estimated amount and probability of variable consideration are factors that influence estimates of the total contract transaction price, total costs to complete those contracts and the Company’s profit recognition.  Changes in these factors could result in revisions to the amount of revenue recognized in the period in which the revisions are determined, which revisions could materially affect the Company’s consolidated results of operations for that period.  Provisions for losses on uncompleted contracts are recorded in the period in which such losses are estimated based on management’s experience and judgment.  In each of the years ended December 31, 2024, 2023 and 2022, project profit was affected by less than 5% as a result of changes in contract estimates included in projects that were in process as of December 31, 2023, 2022 and 2021.  Changes in recognized revenue, net, as a result of changes in total contract transaction price estimates, including from variable consideration, and/or changes in cost estimates, related to performance obligations satisfied or partially satisfied in prior periods, for both the years ended December 31, 2024 and 2022 positively affected revenue by approximately 0.1%, and for the year ended December 31, 2023, positively affected revenue by approximately 0.2%.The Company may incur certain costs that can be capitalized, such as initial set-up