Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 262

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 262
---
 the long-lived assets in the related asset group. The Company determined that the estimated undiscounted cash flows were sufficient to
cover the carrying values and concluded that no impairments were necessary. No impairment charge was recorded against long-lived assets for the years ended December 31, 2024, 2023 or 2022.

Equity Method Investments

The Company has
investments in a number of joint ventures, some of which are VIEs. For VIEs where the Company is not the primary beneficiary, the Company accounts for its investments using the equity method of accounting. Any investment in a joint venture that is
not a VIE and for which the Company has investments between 20% and 50% is accounted for using the equity method of accounting when the Company has the ability to exercise significant influence, but not control. The joint venture investments are
included in Other assets on the Consolidated Balance Sheets and are adjusted for contributions made, distributions received, impairments and the Company’s share of income or loss. Equity in earnings of joint venture, presented in the
Company’s Consolidated Statements of Operations, reflects the Company’s share of joint venture income or loss, as well as any impairment loss. Distributions received from the joint venture investment are accounted for under the cumulative
earnings approach, which compares the Company’s cumulative distributions received from the joint venture against its cumulative equity in earnings of joint venture. The Company assesses its equity method investments for impairment if there are
changes in facts and circumstances that indicate a loss in value may have occurred. If a loss is deemed to have occurred and the loss is determined to be other than temporary, the carrying value of the equity method investment is written down to
fair value and an impairment recorded. An immaterial impairment charge was recorded for the year ended December 31, 2024. No impairment charge was recorded for the year ended December 31, 2023.

Insurance

Legence maintains insurance for general
liability, workers’ compensation, automobile liability and professional liability, subject to policy limits. Most of the Company’s insurance policies also include deductibles. The Company has umbrella and excess coverage attached to these
policies that insure the Company for certain amounts in excess of the related insurance policy limits. The Company is self-insured for its medical coverage and is covered by stop-loss insurance for claims in excess of a contractual limit.

F-15

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section