Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 239

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 239
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 impairment loss is determined, the loss is recognized in the Consolidated Statements of Operations.

The Company completed its
annual goodwill impairment test effective October 1, 2023. See “” for additional information regarding Goodwill.

Intangible Assets, Net

The Company’s identifiable
intangible assets include customer relationships, trade names, and contract backlog. All finite-lived identifiable intangible assets are subject to amortization on a straight-line basis over their estimated lives. Refer to “” for additional information regarding intangible assets.

Long-Lived Assets Impairment

Long-lived assets, which include property and equipment, operating lease
right-of-use assets, and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset group may not be recoverable. Recoverability generally is determined by comparing the carrying value of an asset group to the expected undiscounted future cash flows of the asset group. If the carrying value of an asset group
exceeds its expected undiscounted future cash flows (i.e. not recoverable), the amount of impairment loss is measured as the difference between the carrying value of the asset group and its estimated fair value generally using the expected
discounted future cash flows. No impairment charge was recorded against long-lived assets for the years ended December 31, 2023 and 2022.

Equity Method Investments

A joint venture investment in which the Company has significant influence, but not control, is accounted for in the Company’s
Consolidated Financial Statements using the equity method of accounting. When joint venture investments are acquired through a business combination, they are stated at fair value at the time of acquisition. The joint venture investment is adjusted
for contributions made, distributions received, and the Company’s share of income or loss. Equity in earnings of joint venture, presented in the Company’s Consolidated Statements of Operations, reflects the Company’s share of joint
venture income or loss. Distributions received from the joint venture investment are accounted for under the cumulative earnings approach, which compares the Company’s cumulative distributions received from the joint venture against its
cumulative equity in earnings of joint venture. Distributions received in excess of the joint venture investment of $1.5 million are recorded in Other long-term liabilities on the Consolidated Balance Sheet as of December 31, 2023, since
the Company has an obligation to fund joint venture losses.

Insurance

Legence maintains insurance for general liability, workers’ compensation, automobile liability and professional liability,