Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 278

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 278
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 recognized when promised goods or services are transferred to customers in an amount that reflects
the consideration to which the Company expects to be entitled in exchange for those goods or services.

Refer to “” for additional information.

Cash and Cash Equivalents

Cash and cash equivalents includes cash in banks and highly liquid investments with maturities of three months or less at the date of purchase. The Company
considers highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents.

Restricted Cash

At various points in time, the Company may have restricted cash. Restricted cash represents legally restricted funds that are not available for general
business use and are set aside for specific purposes. The Company classifies restricted cash separately from cash and cash equivalents on the Consolidated Balance Sheets.

Refer to “” for additional information.

F-17

Legence Holdings LLC and Subsidiaries

Notes to Consolidated Financial Statements

Accounts Receivable, Contract Assets and Allowance for Credit Losses

Accounts receivable primarily consists of contracts receivable, which include billed and billable amounts for goods and services provided to customers for
which the Company has an unconditional right to payment. Amounts contingent on anything other than the passage of time are contract assets. Accounts receivable also include other receivables which primarily consists of income tax receivables and
amounts due from government and insurance entities. Refer to “” for additional information.

The Company extends credit to its customers in the normal course of business and performs ongoing credit evaluations of its customers maintaining allowances
for estimated credit losses that, when realized, have been within management’s expectations. The Company estimates and records expected credit losses over the contractual life of its financial assets measured at amortized cost, including
accounts receivable and contract assets. The estimate uses a loss-rate method based on historical loss activity adjusted for current market conditions and reasonable and supportable forecasts, as applicable. Accounts receivable are generally written
off when they are determined to be uncollectible after reasonable collection efforts have been made and collection appears unlikely.

See “” for additional information.

Deferred Contract Costs

Deferred contract costs, included within Prepaid expenses and other current assets, represent costs to (a) obtain a contract that are incremental because
they were only incurred as a result of securing that contract and (b) costs to fulfill a contract that occur prior to transferring a good or service to a customer. Deferred contract costs are amortized over the life of the underlying contract
consistent with the transfer to the customer