Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 296

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 296
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 outcomes, and specific contractual terms governing the individual earnout. During the years ended December 31, 2024 and 2023, there were no significant changes in the valuation techniques or inputs related to the Company’s contingent consideration liabilities. As of December 31, 2023, all the earnout periods were complete and the calculation of the earnout obligation was final. The remaining amount to be paid for contingent consideration liabilities as of December 31, 2023 was $65.7 million, which is included in Accrued and other current liabilities on the Consolidated Balance Sheets. Changes in the fair value of contingent consideration liabilities are recorded to Changes in the fair value of contingent consideration liabilities on the Company’s Consolidated Statements of Operations. The following is a Level 3 summary of changes in contingent consideration liabilities (in thousands):

|                                                      |     |   |    2024 |   |     |   |    2023 |   |
|:-----------------------------------------------------|:----|:--|--------:|:--|:----|:--|--------:|:--|
| Balance, beginning of period                         |     | $ |  65,700 |   |     | $ |  41,425 |   |
| Initial fair value for current year acquisitions     |     |   |       — |   |     |   |  13,929 |   |
| Change in fair value included in earnings            |     |   |       — |   |     |   |  31,071 |   |
| Payment of contingent consideration—cash             |     |   | (65,700 | ) |     |   | (11,400 | ) |
| Payment of contingent consideration—Parent interests |     |   |       — |   |     |   |  (9,325 | ) |
| Balance, end of period                               |     | $ |       — |   |     | $ |  65,700 |   |

During the year ended December 31, 2024, all contingent consideration liabilities were paid in cash, primarily relating to Black Bear, A.O. Reed, and OCI; $33.2 million of these payments were made to related parties. The following amounts represent related party activity included in the table above as of December 31, 2023: $13.9 million in initial fair value for 2023 acquisitions, $13.4 million in Change in fair value included in earnings, $10.7 million