Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 309

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 309
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 |  23,054 |   |
| Deferred tax liabilities:                     |     |              |         |   |     |      |         |   |
| Outside basis difference in partnerships      |     |              | (20,875 | ) |     |      | (26,485 | ) |
| Intangible assets                             |     |              | (28,734 | ) |     |      | (36,974 | ) |
| Operating lease right-of-use-assets           |     |              |  (5,133 | ) |     |      |  (5,818 | ) |
| Property and equipment depreciation           |     |              |  (1,967 | ) |     |      |  (2,423 | ) |
| Other                                         |     |              |       — |   |     |      |     (26 | ) |
| Total deferred tax liabilities                |     |              | (56,709 | ) |     |      | (71,726 | ) |
| Net deferred tax liabilities                  |     | $            | (34,962 | ) |     | $    | (48,672 | ) |

The Company acquired additional tax attributes from prior acquisitions. As of December 31, 2024, the Company had $4.6 million of Federal net operating losses and $9.4 million of State net operating losses. The Federal net operating losses can be carried forward indefinitely. Many of the jurisdictions in which the Company has State net operating losses have an indefinite carryforward period; however, $0.1 million of State net operating losses could begin to expire as early as 2036 if not utilized. Deferred income tax (benefit) expense results from differences between assets and liabilities measured for financial reporting purposes versus income tax return purposes. Deferred tax assets are recognized if, in management’s judgment, their realizability is determined to be more likely than not. If a deferred tax asset is determined to be unrealizable, a valuation allowance is established. Based on this analysis, the Company has no valuation as of December 31, 2023 and recorded a valuation allowance against certain state deferred tax assets of its subsidiaries of $0.1 million as of December 31, 2024. F-53

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 Pursuant to Section 382 of the Internal Revenue Code, utilization