Company: LGN
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001193125-25-186788
Chunk: 277

Company: Legence Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 277
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 are charged to expense as incurred.

F-18

Legence Holdings LLC and Subsidiaries Notes to Consolidated Financial Statements Upon retirement or disposition of property or equipment, the cost and related accumulated depreciation are removed from the accounts, and any related gain or loss is recognized in the Consolidated Statements of Operations. The estimated useful lives for new property and equipment acquired are generally as follows:

| Autos and trucks                |     | 2-5 years |    |
| Computer equipment and software |     | 3-5 years |    |
| Leasehold improvements          |     | Various   | -1 |
| Equipment and tools             |     | 5 years   |    |
| Office furniture and other      |     | 4-7 years |    |

| (1) | Leasehold Improvements are amortized over the shorter of their useful life and the remaining lease term, unless                                                                                                                                        
 the lease transfers ownership of the underlying asset to the Company or the Company is reasonably certain to exercise the option to purchase the underlying asset, in which case the leasehold improvements will be amortized over their useful lives. |

Goodwill Goodwill represents the excess of the consideration transferred over the fair value of identifiable assets and liabilities of the acquired business. Goodwill is not subject to amortization but is evaluated for impairment at the reporting unit level, which represents the operating segment level or one level below the operating segment level for which discrete information is available. Goodwill is evaluated for impairment on an annual basis as of October 1 stand on an interim basis if events or circumstances arise which indicate that the carrying value of goodwill may not be recoverable from future cash flows. The Company has determined its reporting units are its operating companies, which constitute businesses. The Company has an option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If the Company determines, based on qualitative factors, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative assessment is performed to compare the fair value of the reporting unit to its carrying value. Further, the Company may choose to bypass the qualitative assessment and proceed directly to the quantitative assessment. An impairment loss is recognized for a reporting unit to the extent fair value is less than the carrying value, limited to the amount of goodwill allocated to that reporting unit. Fair values of reporting units are estimated based on a market approach and an income approach. The income approach utilizes discounted future cash flows and assumptions critical to the fair value estimate