Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 240

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 240
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 subject to policy limits. Most
of the Company’s insurance policies also include deductibles. The Company has umbrella and excess coverage attached to these policies that insure the Company for certain amounts in excess of the related insurance policy limits. The Company is
self-insured for its medical coverage and is covered by stop-loss insurance for claims in excess of a contractual limit.

F-13

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

Insurance liabilities are estimated based on (i) reported claims and (ii) amounts incurred but not
reported. The liability for reported claims is estimated by evaluating the facts and circumstances of each claim and are adjusted from time to time based upon the status of each claim and the Company’s historical experience with similar claims.
The liability for amounts incurred but not reported is estimated each reporting period by a third-party and includes provisions for expected claims to be reported in the future but which have occurred prior to the accounting date. Insurance
liabilities are reflected in the Consolidated Balance Sheet in Accrued and other current liabilities. Any adjustments to these liabilities are recorded in the Consolidated Statements of Operations.

Debt Issuance Costs

The Company has obtained debt
financing using term loans, delayed draw term loan (“DDTL”) commitments, and a revolving line of credit. Debt issuance costs incurred to obtain financing are amortized over the expected term of the underlying debt. Unamortized debt
issuance costs related to term loans are presented in the Consolidated Balance Sheet as a direct deduction from the carrying amount of Long-term debt and Long-term debt—related parties, consistent with debt discounts, and amortized using the
effective interest method. When financing arrangements are amended, the existing unamortized costs are either written off, for lenders that no longer provide financing, or amortized using an updated effective interest when there is no substantial
change to the related debt. Unamortized debt issuance costs related to the revolving line of credit are included in Other assets on the Consolidated Balance Sheet and are amortized using the straight-line method.

Shipping and Handling Costs

The Company includes all
shipping and handling charges incurred in Cost of revenue. Shipping and handling costs charged to customers are included as a component of Revenue.

Fair Value of Financial Instruments

ASC Topic 820,
Fair Value Measurement, clarifies the definition of fair value, prescribes methods for measuring