Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 246

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 246
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 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 the Company’s year ending December 31, 2025. Early adoption is 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 the
Company’s year ending December 31, 2025 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of Update 2023-09 on its Consolidated Financial Statements.

Segment Reporting - In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280)- Improving 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. ASU 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. This update is effective for the Company’s year ended December 31, 2024, and interim periods beginning for the year ending December 31, 2025. Retrospective application
is required. As a result, Update 2023-07 will require additional segment expense disclosures when adopted in the Company’s Consolidated Financial Statements for the year ended December 31, 2024 and
in periodic reports thereafter.

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. The amount of revenue