Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 236

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 236
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 of the fair value of identifiable assets and liabilities acquired over the consideration
transferred. The results of operations of acquired companies are included in the Consolidated Statements of Operations from their acquisition dates.

Use of Estimates

The preparation of Consolidated
Financial Statements in conformity with U.S. GAAP requires the Company to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the related revenues and expenses and related disclosures as of
the date of the Consolidated Financial Statements. Actual results could differ from those estimates. The Company’s Consolidated Financial Statements include estimates and assumptions related primarily to Revenue, Goodwill, Income taxes and
Business combinations.

F-10

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

Revenue and Cost Recognition

The Company’s revenue is primarily derived from project contracts that can span from one day to several years, though most projects are completed in less
than one year. Revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

Refer to “” for additional information.

Cash and Cash Equivalents

Cash and cash equivalents
includes cash in banks and highly liquid investments with maturities of three months or less at the date of purchase The Company considers highly liquid investments with maturities of three months or less at the date of purchase to be cash
equivalents.

Restricted Cash

At various points in
time, the Company may have restricted cash. Restricted cash represents legally restricted funds that are not available for general business use and are set aside for specific purposes. The Company classifies restricted cash separately from cash and
cash equivalents on the Consolidated Balance Sheet.

Refer to “” for additional information.

Accounts Receivable, Contract Assets and Allowance for Credit Losses

Accounts receivable primarily consists of contracts receivable, which include billed and billable amounts for goods and services provided to customers for
which the Company has an unconditional right to payment. Amounts contingent on anything other than the passage of time are contract assets.

The Company
extends credit to its customers in the normal course of business and performs ongoing credit evaluations of its customers maintaining allowances for estimated credit losses that, when realized, have been within management’s expectations. The
Company estimates and records expected credit losses over the contractual life of its financial assets measured