Company: LGN
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001193125-25-186788
Chunk: 346

Company: Legence Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 346
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 C Common Interests were issued in connection with an acquisition as compensation for future services to certain of the acquiree’s former shareholders and employees who became Company employees in connection with the acquisition. Contributions to the Company from the Parent and distributions from the Company to the Parent are accounted for by the Company as adjustments to Member’s equity. Additionally, Parent may issue Parent interests to the Company’s employees or to other parties in connection with certain transactions, which the Company accounts for as a capital contribution from or on behalf of Parent recorded within Member’s equity. F-83

Legence Holdings LLC and Subsidiaries Notes to Condensed Consolidated Financial Statements—(Continued) (Unaudited) Note 11—Income Taxes The income tax expense and effective income tax rate were as follows (in thousands):

|                           |     | 2025 | Three Months Ended 
           June 30, |   |     | 2024 |       |   |     | 2025 | Six Months Ended 
         June 30, |    |     | 2024 |        |    |
|:--------------------------|:----|:-----|-------------------:|:--|:----|:-----|------:|:--|:----|:-----|-----------------:|:---|:----|:-----|-------:|:---|
| Income tax expense        |     | $    |              5,546 |   |     | $    | 3,656 |   |     | $    |            9,584 |    |     | $    |  4,936 |    |
| Effective income tax rate |     |      |              330.7 | % |     |      |  37.1 | % |     |      |            (71.4 | )% |     |      | (128.8 | )% |

The Company evaluates its estimated annual effective income tax rate based on current and forecasted business results and enacted tax laws on a quarterly basis, adjusted for discrete events arising in each respective quarter, and applies this tax rate to ordinary income or loss to calculate the estimated tax liability or benefit. Due to the nature of the legal structure, the effective tax rate is impacted by the changes in the mix of earnings from pass-through businesses that are not subject to income taxes at the Company level. For the three months ended June 30, 2025 and 2024, the effective tax rate was higher than the U.S. federal statutory