Company: MTZ
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000015615-25-000052
Chunk: 8

Company: MASTEC INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 losses included within other comprehensive income or loss.  Substantially all of the Company’s foreign operations use their local currency as their functional currency.  For foreign operations for which the local currency is not the functional currency, the operation’s non-monetary assets are remeasured into U.S. dollars at historical exchange rates.  All other accounts are remeasured at current exchange rates.  Gains or losses from remeasurement are included in other income or expense, net.  Currency gains or losses resulting from transactions executed in currencies other than the functional currency are included in other income or expense, net.In these consolidated financial statements, “$” means U.S. dollars unless otherwise noted.Significant Accounting PoliciesRevenue RecognitionThe Company recognizes revenue from contracts with customers when, or as, control of promised services and goods is transferred to customers.  The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for the services and goods transferred.  The Company primarily recognizes revenue over time utilizing the cost-to-cost measure of progress, which best depicts the continuous transfer of control of goods or services to the customer, and correspondingly, when performance obligations are satisfied for the related contracts.

8

Contracts.  The Company derives revenue primarily from construction projects performed under: (i) master service and other service agreements, which generally provide a menu of available services in a specific geographic territory that are utilized on an as-needed basis, and are typically priced using either a time and materials or a fixed price per unit basis; and (ii) contracts for specific projects requiring the construction and installation of an entire infrastructure system, or specified units within an infrastructure system, which may be subject to one or multiple pricing models, including fixed price, unit price, time and materials, or cost plus a markup.  Revenue derived from projects performed under master service and other service agreements totaled 48% and 40% of consolidated revenue for the three month periods ended March 31, 2025 and 2024, respectively.For certain master service and other service agreements, revenue is recognized at a point in time, primarily for 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 three month periods ended March 31, 2025 and 2024.The