Company: LGN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0002052568-25-000018
Chunk: 86

Company: Legence Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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Interest rate swaps1,172 5,861 Prepaid expenses and other current assets$39,038 $38,506 Condensed Consolidated Statements of Cash Flows InformationAdditional cash flow information was as follows (in thousands):Nine Months Ended September 30,20252024Cash paid for interest and taxesInterest paid, net of interest rate swaps(1)$84,089 $61,813 Income taxes paid, net of refunds$14,992 $13,396 Non-cash investing activitiesProperty and equipment additions included in Accounts payable$1,404 $(385)Non-cash financing activitiesDeferred offering costs included in Accounts payable$6,050 $— Deferred offering costs included in Accrued and other current liabilities$990 $— Contribution from Legence Parent for Series A Interests and Restricted Series C Interests$3,191 $— Contribution from Legence Parent II for Series A Interests$1,884 $— Supplemental non-cash lease informationRight-of-use assets obtained in exchange for new operating lease liabilities - related parties(2)$— $3,429 Right-of-use assets obtained in exchange for new operating lease liabilities(2)$26,444 $31,356 Right-of-use assets obtained in exchange for new finance lease liabilities$5,631 $3,743 Right-of-use asset modifications for operating leases$2,026 $2,727 Non-cash financing activities related to IPO and Corporate ReorganizationReclassification of Series A Interests and Restricted Series C Interests from liability to equity$36,358 $— TRA liability recognized$146,474 $— Deferred tax asset, net of valuation allowance, recognized in connection with the TRA liability$8,401 $— 

39

Legence Corp.Notes to Condensed Consolidated Financial Statements - (Continued)(Unaudited)

(1)The Company classifies the cash flows resulting from its interest rate swaps in Cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows consistent with the interest that is hedged. Refer to “Note 9—Derivatives” for additional information on the Company's interest rate swaps.(2)Includes right-of-use assets acquired. Refer to “Note 4—Acquisitions”. Refer to “Note 4—Acquisitions” for disclosure of non-cash financing of acquisitions through issuance of Common Interests.

Note 20