Company: LGN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0002052568-25-000018
Chunk: 69

Company: Legence Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 Company also financed certain insurance-related payments. As of September 30, 2025 and December 31, 2024 the outstanding balance was $4.7 million with an interest rate of 7.38% and $2.1 million with an interest rate of 8.49%, respectively. The outstanding balance was included in Current portion of long-term debt on the Condensed Consolidated Balance Sheets.Finance leases The Company's finance leases consist primarily of vehicle leases.

Note 8 - Fair Value Measurements

The Company recognizes certain financial assets and liabilities at fair value on a recurring basis following the fair value hierarchy detailed in ASC Topic 820, Fair Value Measurement:Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. 

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Legence Corp.Notes to Condensed Consolidated Financial Statements - (Continued)(Unaudited)

Level 2: Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3: Inputs are unobservable inputs that reflect the reporting entity's own assumptions on which assumptions the market participants would use in pricing the asset or liability based on the best available information. The following table presents the input level used to determine the fair value of the financial instruments measured at fair value on a recurring basis (in thousands):September 30, 2025Level 1Level 2Level 3Assets:Cash equivalents - money market$121,383 $— $— Interest rate swap instruments$— $1,172 $— Liabilities:Interest rate swap instruments$— $1,617 $— December 31, 2024Level 1Level 2Level 3Assets:Cash equivalents - money market$49,217 $— $— Interest rate swap instruments$— $9,248 $— Liabilities:Interest rate swap instruments$— $137 $— The carrying value of Cash approximates fair value due to its short-term nature.Interest Rate Swap Instruments: Additional derivative instrument disclosures for the Company’s interest rate swaps can be found in “Note 9—Derivatives”.For determining the fair value of the interest rate swap contracts, the Company uses significant observable market data or assumptions (Level 2 inputs) that market