Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 282

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 282
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01, “Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards” (“Update 2024-01”). This
update adds an illustrative example to demonstrate how an entity should apply the scope guidance to determine whether profits interest awards should be accounted for in accordance with ASC 718. Update 2024-01
is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years, with early adoption permitted. The guidance may be applied on either a retrospective or a prospective basis. The Company is
currently evaluating the impact of Update 2024-01 on its Consolidated Financial Statements.

Income Taxes—In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“Update
2023-09”). The amendments in this update provide more transparency about income tax disclosures primarily related to the rate reconciliation and income taxes paid information. Update 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. While the adoption of Update 2023-09 will result in expansion of
income tax disclosures, the Company does not expect it to impact the recognition or measurement of income taxes within its Consolidated Financial Statements.

Segment Reporting—In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“Update 2023-07”). This update requires disclosures to include significant segment expenses that are regularly provided to the chief
operating decision maker (“CODM”) and a description of other segment items by reportable segment. Update 2023-07 clarifies that if the CODM uses more than one measure of a segment’s profit or
loss in assessing segment performance and deciding how to allocate resources, an entity may report one or more of those additional measures of segment profit. Update 2023-07 also requires all annual
disclosures currently required by Topic 280 to be included in interim periods. The Company adopted Update 2023-07 effective January 1, 2024 through retrospective application. Refer to “” for additional information.

Note 3—Revenue Recognition and Related Balance Sheet Accounts

Revenue is recognized when control of the promised goods or services is transferred to the customer, either at a point-in-time or over-time, as the performance obligation is satisfied.