Company: LGN
Filing Date: 2025-07-15
Form Type: DRS/A
Source: 0000950123-25-006399
Chunk: 279

Company: Legence Corp.
Filing Date: 2025-07-15
Form: DRS/A
Chunk 279
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vements to Reportable Segment Disclosures” (“Update 2023-07”). This update requires disclosures to include significant segment expenses that are regularly provided to the chief
operating decision maker (“CODM”) and a description of other segment items by reportable segment. Update 2023-07 clarifies that if the CODM uses more than one measure of a segment’s profit or
loss in assessing segment performance and deciding how to allocate resources, an entity may report one or more of those additional measures of segment profit. Update 2023-07 also requires all annual
disclosures currently required by Topic 280 to be included in interim periods. The Company adopted Update 2023-07 effective January 1, 2024 through retrospective application. Refer to “” for additional information.

Note 3—Revenue Recognition and Related Balance Sheet Accounts

Revenue is recognized when control of the promised goods or services is transferred to the customer, either at a point-in-time or over-time, as the performance obligation is satisfied. The amount of revenue recognized reflects the consideration that the Company expects to receive in exchange for those goods or services
provided. The Company transacts with customers that management believes are credit worthy, and management considers historical customer practices and payment history when determining whether collection is probable. The five-step model is applied as
follows:

1) Identify the contract

Management
determines if a contract exists using the following factors: (a) the parties have approved the contract and are committed to perform their respective obligations, (b) the rights of the parties can be identified, (c) payment terms can
be identified, (d) the arrangement has commercial substance, and (e) collectability of consideration is probable.

2) Identify performance obligations in the contract

A performance obligation is a contractual promise to transfer a distinct good or service. The Company applies judgment in
determining whether each promise or groups of promises are both (a) capable of being distinct and (b) distinct within the context of the contract. Most of the Company’s contracts are considered to have a single performance obligation
because (a) the Company provides a significant service of integrating complex tasks and components into a single project under the purview of the Company’s project management, and (b) the risks

F-25

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

associated