MASTEC INC

Note 8 –Lease Obligations

Finance Leases

The gross amount of assets held under finance leases as of December 31, 2024 and 2023 totaled $713.9 million and $679.9 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $473.0 million and $473.3 million as of December 31, 2024 and 2023, respectively. Depreciation expense associated with finance leases totaled $81.7 million, $103.0 million and $91.7 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Operating Leases

Operating lease additions for the years ended December 31, 2024, 2023 and 2022 totaled $166.8 million, $224.6 million and $119.1 million, respectively. Acquisition-related additions totaled $32.4 million for the year ended December 31, 2022.

For the years ended December 31, 2024, 2023 and 2022, rent expense for leases that have terms in excess of one year totaled approximately $195.8 million, $162.1 million and $134.1 million, respectively, of which $17.8 million, $15.8 million and $11.1 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $547.0 million, $608.2 million and $377.8 million for the years ended December 31, 2024, 2023, and 2022, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows.

Additional Lease Information

Future minimum lease commitments as of December 31, 2024 were as follows (in millions):

The following table presents weighted average remaining lease terms and discount rates for finance and non-cancelable operating leases as of the dates indicated: