Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 267

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 267
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 yield for a term consistent with the expected life. The expected
volatility assumption is based on the volatility of guideline public companies, adjusted for the Company’s size and leverage. Since the Parent interests do not have a provision for recurring distributions and the Parent does not have a history
or expectation of future recurring distributions, the Company’s expected dividend yield assumption is nil. The hybrid method incorporates various future outcomes, including IPO scenarios and a delayed exit scenario, and allocates the value in
each scenario using the OPM.

Once vested, the holders of the Series A Profits Interests may participate in distributions of the Company’s
earnings, assets and properties upon liquidation or a distribution as directed by the Parent’s board of directors. The distributions are first made to the holders of Common Interests until their unreturned contributions are reduced to zero, and
thereafter to the holders of vested Series A Profits Interests and Common Interests pro rata based on their aggregate percentage interests (taking into account any applicable participation thresholds). Please refer to “” for additional information regarding Common Interests.

F-18

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

Legence Holdings LLC and Subsidiaries

Notes to Consolidated Financial Statements

The Series A Profits Interests are subject to certain forfeiture and repurchase provisions in the event of
interest holder employment termination. Restricted Series C Common Interests participate in distributions alongside Common Interests and are subject to the same forfeiture and repurchase provisions as the Series A Profits Interests. Holders of
Restricted Series C Common Interests must repay any distributions received on unvested Restricted Series C Common Interests within 15 days of employment termination.

Please refer to “” for additional information and further disclosures regarding stock-based
compensation.

Income Taxes

Parent is treated as a
partnership for federal and state income tax purposes and indirectly owns 100% of the shares of multiple corporations. The corporations indirectly owned by Parent are subject to entity-level taxation and, as a result, provision for federal, state
and local income taxes.

Income taxes for the corporations are provided for under the asset and liability method. Under this method, deferred tax assets
and liabilities are determined based on the difference between the Consolidated Balance Sheets and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates in effect for
the year in which the differences are expected to