Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 356

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 356
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 discussed in “ Note 6—Variable Interest Entities and Equity Method Investments”, the Company had related-party revenue from certain unconsolidated joint ventures. F-85

Legence Holdings LLC and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

As discussed in “”, a portion of the Company’s term loan is held by
entities associated with the Company and Sponsor. As discussed in “”, the Company issued certain related party promissory notes in connection with certain acquisitions.

The Company has various lease agreements with entities owned by members of its management team and/or Parent interests holders.

Note 14—Commitments and Contingencies

Legal Proceedings

The Company is involved in various claims and legal proceedings incidental to its normal business activities. When a potential loss from a
proceeding or claim is considered probable and the amount can be reasonably estimated or a range of loss can be determined, a loss contingency is recorded. The Company also provides disclosure when it is reasonably possible that a material loss will
be incurred. Although the outcome of such claims and proceedings cannot be predicted with certainty, the Company vigorously defends its position in all such matters. The Company is not aware of any known contingencies, claims or lawsuits that will
have a material effect on its financial position, results of operations or cash flows other than those described herein.

Insurance

The Company carries various insurance policies to address identified risks of loss including cyber, general liability, worker’s compensation, automobile
liability and professional liability risks. As of June 30, 2025 and December 31, 2024, a liability for known and expected but not yet reported claims of $2.4 million and $2.6 million, respectively, was reflected in Accrued and
other current liabilities on the Condensed Consolidated Balance Sheets. The determination of such claims and expenses and the appropriateness of the related liability is continually reviewed and updated by management.

The Company is self-insured for its medical coverage. The Company is responsible for the first $0.3 million of claims for each participant enrolled in
the medical coverage plan. Any claims exceeding $0.3 million are covered through a stop-loss insurance plan. A liability for expected but not yet reported claims in the amount of $1.5 million and $1.3 million was reflected in Accrued
compensation and benefits on the Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024