Company: LGN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0002052568-25-000018
Chunk: 71

Company: Legence Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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 for trading or speculative purposes. Additional information regarding the fair value of the Company’s interest rate swaps can be found in “Note 8—Fair Value Measurements”.The fair value of derivative instruments is presented on the Condensed Consolidated Balance Sheets, as follows (in thousands):Balance Sheet LocationSeptember 30, 2025December 31, 2024Derivatives designated as hedging instrumentsInterest rate swap asset (short-term)Prepaid expenses and other current assets$1,172 $5,861 Interest rate swap asset (long-term)Other assets$— $3,387 Interest rate swap liability (short-term)Accrued and other current liabilities$500 $— Interest rate swap liability (long-term)Other long-term liabilities$1,117 $137 The following table presents the gross changes in Accumulated Other Comprehensive Income ("AOCI") from the Company’s cash flow hedges (in thousands). Prior to the Corporate Reorganization, there was no tax impact associated with the interest rate swaps.Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Beginning balance$840 $24,673 $9,111 $22,166 Unrealized gain (loss) recognized in AOCI172(14,630)(3,618)2,207Gain reclassified from AOCI to Interest expense(1,457)(7,513)(5,938)(21,843)Other comprehensive loss(1,285)(22,143)(9,556)(19,636)Ending balance(445)2,530 (445)2,530 Noncontrolling interests(197)— (197)— Accumulated (loss) gain in AOCI$(248)$2,530 $(248)$2,530 For the three and nine months ended September 30, 2025 and 2024, there was no ineffectiveness recognized in earnings.The following table provides additional details related to the interest rate swap agreements that were in effect as of September 30, 2025 (notional in thousands):

29

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

Effective Date (1)Maturity DateNotional Amount (2)Fixed Interest Rate (3)February 28, 2023December 31, 2026$337,5003.4396%February 28, 2023December 31,