Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 316

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 316
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 to consolidated VIEs that were acquired in the AMA acquisition. The Company anticipates that the unrecognized tax benefits could decrease by as much as approximately $2.5 million over the next 12 months. The Company’s policy is to classify interest and penalties as income tax expense. As of December 31, 2024, the Company has interest and penalty accruals of $1.4 million and $2.9 million, respectively, related to unrecognized tax benefits, of which $1.2 million and $2.9 million, respectively, relate to consolidated VIEs that were acquired in the AMA acquisition. As of December 31, 2023, the Company had no interest or penalty accruals associated with uncertain tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows (in thousands):

|                                                                |     |   |   2024 |     |   |  2023 |     |   |  2022 |
|:---------------------------------------------------------------|:----|:--|-------:|:----|:--|------:|:----|:--|------:|
| Unrecognized tax benefits at the beginning of period           |     | $ |  2,677 |     | $ | 2,677 |     | $ | 2,677 |
| Increases based on tax positions related to the current period |     |   |      — |     |   |     — |     |   |     — |
| Increases based on tax positions related to prior periods      |     |   |  7,681 |     |   |     — |     |   |     — |
| Decreases based on tax positions related to prior periods      |     |   |      — |     |   |     — |     |   |     — |
| Decreases related to cash settlements with taxing authorities  |     |   |      — |     |   |     — |     |   |     — |
| Unrecognized tax benefits at the end of period                 |     | $ | 10,358 |     | $ | 2,677 |     | $ | 2,677 |

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The Company remains subject to income tax examinations for its U.S. federal income taxes for tax years ending December 31, 2021 through 2024. Starting in 2021, the Company has