Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 277

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 277
---
 Sponsor and related portfolio companies. F-48

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

Legence Holdings LLC and Subsidiaries

Notes to Consolidated Financial Statements

As discussed in “” and “”, in connection with certain business acquisitions, a portion of the contingent consideration was transferred to certain sellers who became members of management of the Company.

As discussed in “”, the Company has various lease agreements with certain former owners of acquired businesses.

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

Note 17—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. During the year ended December 31, 2023, the Company reached a
$3.1 million settlement agreement, inclusive of administrative, legal and other fees, for a class action suit related to certain employee matters. Upon court approval and other required administration activities, the settlement payment was made
in March 2024. Liabilities of $3.1 million are included in Accrued compensation and benefits on the Consolidated Balance Sheet as of December 31, 2023. 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 general liability, worker’s compensation, automobile
liability and professional liability risks. A liability for known and expected but not yet reported claims in the amount of $1.6 million as of December 31, 2023 is reflected in Accrued and other current liabilities in the Consolidated
Balance Sheet. 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