Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 279

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 279
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 of the good or service to which they relate. Both selling expenses that are not incremental to a contract and costs incurred to fulfill a contract that occur prior to transferring a good or service to a
customer that are not expected to be recovered are expensed as incurred.

Deferred Offering Costs

Offering costs, which include legal, accounting, printing, and other third-party fees that are incremental and directly related to the Company’s
anticipated equity financing such as an initial public offering (“IPO”) are capitalized within Other assets on the Consolidated Balance Sheets. These costs are deferred until the equity financing is consummated, at which point they are
recorded as a reduction of the proceeds from the equity financing. If the planned equity financing is abandoned, terminated, or significantly delayed, all deferred offering costs will be expensed immediately within operating expenses. Deferred
offering costs as of December 31, 2024 totaled $3.7 million. There were no deferred offering costs as of December 31, 2023.

Property and Equipment, Net

Property and equipment is stated at cost, net of accumulated depreciation. Interest costs are capitalized on qualified capital
projects as part of the net asset cost until the asset is ready for its intended use. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets.

Software obtained for internal use and internal and external software development costs incurred during the application development stage of projects are
generally capitalized at cost, unless relating to training or data conversion, which are expensed as incurred. Betterments, additions, and renewals that significantly extend the life of the asset are capitalized and depreciated over their useful
lives. Expenditures for repairs and maintenance are charged to expense as incurred.

F-18

Legence Holdings LLC and Subsidiaries Notes to Consolidated Financial Statements Upon retirement or disposition of property or equipment, the cost and related accumulated depreciation are removed from the accounts, and any related gain or loss is recognized in the Consolidated Statements of Operations. The estimated useful lives for new property and equipment acquired are generally as follows:

| Autos and trucks                |     | 2-5 years |    |
| Computer equipment and software |     | 3-5 years |    |
| Leasehold improvements          |     | Various   | -1 |
| Equipment and tools             |     | 5 years   |    |
| Office furniture and other      |     | 4-7 years |    |

| (1) | Leasehold Impro