Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 323

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 323
---
 disaggregated information about certain income statement costs and expenses on an interim and annual basis. Update 2024-03 is effective for
fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that the adoption of Update
2024-03 will have on its Consolidated Financial Statements.

Income Taxes—In December 2023, the FASB
issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“Update 2023-09”). The amendments in this update
provide more transparency about income tax disclosures primarily related to the rate reconciliation and income taxes paid information. Update 2023-09 is effective for fiscal years beginning after
December 15, 2024 and is not relevant for interim periods. While the adoption of Update 2023-09 will result in expansion of income tax disclosures, the Company does not expect it to impact the recognition
or measurement of income taxes upon adoption within its 2025 Annual Consolidated Financial Statements.

Compensation—Stock Compensation - In
March 2024, the FASB issued ASU 2024-01, “Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards” (“Update 2024-01”). This update adds an illustrative example to demonstrate how an entity should apply the scope guidance to determine whether profits interest awards should be accounted for in accordance with ASC 718.
The Company adopted Update 2024-01 as of January 1, 2025 on a prospective basis, and the adoption did not have an impact on the accounting for profits interests awards, as the Company will continue to
account for profits interest awards under ASC 718.

Note 3—Revenue Recognition and Related Balance Sheet Accounts

Revenue is recognized when control of the promised goods or services is transferred to the customer, either at a point-in-time or over-time, as the performance obligation is satisfied. The amount of revenue recognized reflects the transaction price, which is the consideration that the Company expects to receive in
exchange for those goods or services provided.

Most of the Company’s contracts are considered to have a single performance obligation satisfied
over time using the input method (i.e., “Cost-to-Cost Input Method”). For some contracts, the Company has historically used an output method (i.e., milestone
achievement). For the three months