Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 273

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 273
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 which point they are
recorded as a reduction of the proceeds from the equity financing. If the planned equity financing is abandoned, terminated, or significantly delayed, all deferred offering costs will be expensed immediately within operating expenses. Deferred
offering costs as of December 31, 2024 totaled $3.7 million. There were no deferred offering costs as of December 31, 2023.

Property and Equipment, Net

Property and equipment is stated at cost, net of accumulated depreciation. Interest costs are capitalized on qualified capital
projects as part of the net asset cost until the asset is ready for its intended use. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets.

Software obtained for internal use and internal and external software development costs incurred during the application development stage of projects are
generally capitalized at cost, unless relating to training or data conversion, which are expensed as incurred. Betterments, additions, and renewals that significantly extend the life of the asset are capitalized and depreciated over their useful
lives. Expenditures for repairs and maintenance are charged to expense as incurred.

F-18

Legence Holdings LLC and Subsidiaries Notes to Consolidated Financial Statements Upon retirement or disposition of property or equipment, the cost and related accumulated depreciation are removed from the accounts, and any related gain or loss is recognized in the Consolidated Statements of Operations. The estimated useful lives for new property and equipment acquired are generally as follows:

| Autos and trucks                |     | 2-5 years |    |
| Computer equipment and software |     | 3-5 years |    |
| Leasehold improvements          |     | Various   | -1 |
| Equipment and tools             |     | 5 years   |    |
| Office furniture and other      |     | 4-7 years |    |

| (1) | Leasehold Improvements are amortized over the shorter of their useful life and the remaining lease term, unless                                                                                                                                        
 the lease transfers ownership of the underlying asset to the Company or the Company is reasonably certain to exercise the option to purchase the underlying asset, in which case the leasehold improvements will be amortized over their useful lives. |

Goodwill Goodwill represents the excess of the consideration transferred over the fair value of identifiable assets and liabilities of the acquired business. Goodwill is not subject to amortization but is evaluated for impairment at the reporting unit level, which represents the operating segment level or one level below the operating segment level for which