Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 237

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 237
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 at amortized cost, including accounts receivable and contract assets. The estimate uses a loss-rate method based on historical loss
activity adjusted for current market conditions and reasonable and supportable forecasts, as applicable. Accounts receivable are generally written off when they are determined to be uncollectible after reasonable collection efforts have been made
and collection appears unlikely.

See “” for additional information.

Deferred Contract Costs

Deferred contract costs,
within Prepaid expenses and other, represent costs to (a) obtain a contract that are incremental because they were only incurred as a result of securing that contract and (b) costs to fulfill a contract that occur prior to transferring a
good or service to a customer. Deferred contract costs are amortized over the life of the underlying contract consistent with the transfer to the customer 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.

F-11

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 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. 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