Company: LGN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0002052568-25-000018
Chunk: 142

Company: Legence Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 142
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.3$835,705 $(273,344)$562,361 

23

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

December 31, 2024Gross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted-average Remaining Life(in years)Customer relationships$652,315 $(153,262)$499,053 9.3Trade names 178,970 (61,137)117,833 6.4Contract backlog18,745 (11,381)7,364 0.6$850,030 $(225,780)$624,250 Future amortization of intangible assets as of September 30, 2025 was as follows (in thousands):Year ended December 31:2025 (three months remaining)$19,151 202673,634 202773,402 202873,402 202973,376 Thereafter249,396 $562,361 

Note 6 - Variable Interest Entities and Equity Method Investments

The Company holds interests in a number of joint ventures and other entities, some of which are VIEs. The Company consolidates a VIE when it is the primary beneficiary. For unconsolidated joint ventures, the Company accounts for its investment using the equity method. Consolidated Variable Interest EntitiesIn connection with the Corporate Reorganization, Legence Corp. became the sole managing member of Legence Holdings, in which Legence Corp. operates and controls all of the business and affairs of Legence Holdings, and has the obligation to absorb losses and receive benefits from Legence Holdings. Accordingly, Legence Holdings is evaluated under the guidance for limited partnerships and similar entities in ASC 810, Consolidation, and is considered a variable interest entity. Legence Corp. has both (i) the power to direct the activities that most significantly impact Legence Holdings’ economic performance and (ii) the right to receive benefits or the obligation to absorb losses that could be significant to Legence Holdings. Accordingly, Legence Corp. is the primary beneficiary and consolidates Legence Holdings in its consolidated financial statements. The assets of Legence Holdings can only be used to settle its own obligations. Refer to “Note 12—Noncontrolling Interests”. The Company has various contractual relationships with two professional corporations ("PCs") that provide engineering and design services in New York and California. The Company does not own any equity interest in the PCs but provides