Company: LGN
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001193125-25-186788
Chunk: 275

Company: Legence Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 275
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 assets acquired and liabilities assumed over the consideration transferred. The results of operations of acquired companies are included in the Consolidated Statements of
Operations from their acquisition dates.

Use of Estimates

The preparation of Consolidated Financial Statements in conformity with U.S. GAAP requires the Company to make certain estimates, judgments and assumptions
that affect the reported amounts of assets and liabilities, the related revenues and expenses and related disclosures as of the date of the Consolidated Financial Statements. Actual results could differ from those estimates. The Company’s
Consolidated Financial Statements include estimates and assumptions related primarily to Revenue, Goodwill, Income taxes and Business combinations.

Revenue Recognition

The Company’s revenue is
primarily derived from contracts that can span from one day to several years, though most contracts are completed in less than one year. Revenue is recognized when promised goods or services are transferred to customers in an amount that reflects
the consideration to which the Company expects to be entitled in exchange for those goods or services.

Refer to “” for additional information.

Cash and Cash Equivalents

Cash and cash equivalents includes cash in banks and highly liquid investments with maturities of three months or less at the date of purchase. The Company
considers highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents.

Restricted Cash

At various points in time, the Company may have restricted cash. Restricted cash represents legally restricted funds that are not available for general
business use and are set aside for specific purposes. The Company classifies restricted cash separately from cash and cash equivalents on the Consolidated Balance Sheets.

Refer to “” for additional information.

F-17

Legence Holdings LLC and Subsidiaries

Notes to Consolidated Financial Statements

Accounts Receivable, Contract Assets and Allowance for Credit Losses

Accounts receivable primarily consists of contracts receivable, which include billed and billable amounts for goods and services provided to customers for
which the Company has an unconditional right to payment. Amounts contingent on anything other than the passage of time are contract assets. Accounts receivable also include other receivables which primarily consists of income tax receivables and
amounts due from government and insurance entities. Refer to “” for additional information.

The Company extends credit to its customers in the normal course of business and performs ongoing credit evaluations of its customers maintaining allowances
for estimated credit losses that, when realized, have been within management’s expectations. The Company estimates and records expected credit losses over the contractual life of its financial assets