Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 258

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 258
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 October 1, 2023 and 2022, the Company bypassed the qualitative assessment and proceeded directly to the quantitative assessment. During the year ended December 31, 2023, it was determined the carrying amount of Goodwill for one reporting unit in the Engineering & Consulting segment exceeded fair value, resulting in goodwill impairment of $5.1 million. During the year ended December 31, 2022, it was determined the carrying amount of Goodwill for two reporting units in the Installation & Maintenance segment exceeded fair value, resulting in goodwill impairment of $23.4 million. The impairments were primarily driven by a decline in projected cash flows due to lower revenue projections and investments in support functions for both years and an increased cost of capital due to rising interest rates for the 2022 impairment. Impairment charges are presented in Goodwill impairment on the Consolidated Statements of Operations. The Company’s identifiable Intangible assets, net as of December 31, 2023 consist of the following (in thousands, except weighted-average remaining lives):

|                        |     | Gross Carrying 
 Amount         |         |     | Accumulated  
 Amortization |          |   |     | Net Carrying 
 Amount       |         |     | Weighted-      
 average        
 Remaining Life 
 (in years)     |      |
|:-----------------------|:----|:---------------|--------:|:----|:-------------|:---------|:--|:----|:-------------|--------:|:----|:---------------|-----:|
| Customer relationships |     | $              | 579,865 |     | $            | (100,393 | ) |     | $            | 479,472 |     |                | 10.2 |
| Trade names            |     |                | 174,070 |     |              | (43,071  | ) |     |              | 130,999 |     |                |  7.3 |
| Contract backlog       |     |                |  24,065 |     |              | (16,389  | ) |     |              |   7,676 |     |                |  0.6 |
|                        |     | $              | 778,000 |     | $            | (159,853 | ) |     | $            | 618,147 |     |                |      |

The value of acquired identifiable intangibles at the applicable acquisition dates in 2023 is $99