Company: LGN
Filing Date: 2025-07-15
Form Type: DRS/A
Source: 0000950123-25-006399
Chunk: 152

Company: Legence Corp.
Filing Date: 2025-07-15
Form: DRS/A
Chunk 152
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 service providers. Under 
 the terms of these agreements, we are liable for any disbursement made by the bonding company because of our failure to perform. Surety bonds expire at various times ranging from final completion of a project to a period extending beyond contract    
 completion in certain circumstances. Such amounts can also fluctuate from period to period based upon the mix and level of our bonded operating activity. For example, public sector contracts require surety bonds more frequently than private sector   
 contracts, and accordingly, our bonding requirements typically increase as the amount of our public sector work increases. Our estimated maximum exposure as it relates to the value of the surety bonds outstanding is lowered on each bonded project as 
 the cost to complete is reduced, and each commitment under a surety bond generally extinguishes concurrently with the expiration of its related contractual obligation. As of December 31, 2024, $384.2 million of backlog and awarded                    
 contracts, equivalent to 16% of backlog and awarded contracts, was subject to surety bond obligations. In the ten years prior to December 31, 2024, we did not receive a claim for liquidated damages in excess of $100,000.                              |

| • |     | Payments for collective bargaining agreements, multiemployer pension plan liabilities and liabilities related to                                                                                                          
 our deferred compensation and other employee benefit plans, as discussed in “Note 13— Stock-Based Compensation” and “Note 14—Union-Sponsored Pension Plans and Other Employee Benefit Plans” in the Notes to Consolidated 
 Financial Statements.                                                                                                                                                                                                     |

Critical Accounting Estimates Our management’s discussion and analysis of our financial condition and results of operations is based on our Consolidated Financial Statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Our significant accounting policies are discussed in the “Note 2—Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements. We believe that the accounting policies discussed below are critical to understanding our historical and future performance, as these policies relate to areas involving a significant level of estimation uncertainty and have had or are likely to have a material impact on our financial statements. Revenue Recognition The Company recognizes revenue at the time the related performance obligation is satisfied by transferring the promised good or service to its customers.