Company: LGN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0002052568-25-000018
Chunk: 165

Company: Legence Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 165
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 through the revolving line of credit. As of both September 30, 2025 and December 31, 2024, the Company had $5.2 million in standby letters of credit primarily related to the deductibles of insurance policies.Tax Receivable AgreementAmounts payable under the TRA are accounted for in accordance with ASC Topic 450, Contingencies. Refer to "Note 14—Tax Receivable Agreement" for additional information.

Note 19 - Other Financial Information

38

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

Accounts receivable, net consists of the following (in thousands):September 30, 2025December 31, 2024Contracts receivable, net$583,834 $441,109 Accounts receivable—other4,5997,501Accounts receivable, net$588,433 $448,610 Prepaid expenses and other current assets consists of the following (in thousands):September 30, 2025December 31, 2024Prepaid expenses$22,179 $18,909 Inventories10,912 10,247 Deferred contract costs4,775 3,489 Interest rate swaps1,172 5,861 Prepaid expenses and other current assets$39,038 $38,506 Condensed Consolidated Statements of Cash Flows InformationAdditional cash flow information was as follows (in thousands):Nine Months Ended September 30,20252024Cash paid for interest and taxesInterest paid, net of interest rate swaps(1)$84,089 $61,813 Income taxes paid, net of refunds$14,992 $13,396 Non-cash investing activitiesProperty and equipment additions included in Accounts payable$1,404 $(385)Non-cash financing activitiesDeferred offering costs included in Accounts payable$6,050 $— Deferred offering costs included in Accrued and other current liabilities$990 $— Contribution from Legence Parent for Series A Interests and Restricted Series C Interests$3,191 $— Contribution from Legence Parent II for Series A Interests$1,884 $— Supplemental non-cash lease informationRight-of-use assets obtained in exchange for new operating lease liabilities - related parties(2)$— $3,429 Right-of-use assets obtained in exchange for new operating lease liabilities(2)$26,444