Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 351

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 351
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 a loss contingency is recorded. The Company also provides disclosure when it is reasonably possible that a material loss will
be incurred. Although the outcome of such claims and proceedings cannot be predicted with certainty, the Company vigorously defends its position in all such matters. During the year ended December 31, 2023, the Company reached a
$3.1 million settlement agreement, inclusive of administrative, legal and other fees, for a class action suit related to certain employee matters. Upon court approval and other required administration activities, the settlement payment was made
in March 2024. Liabilities of $3.1 million are included in Accrued compensation and benefits on the Consolidated Balance Sheet as of December 31, 2023. The Company is not aware of any known contingencies, claims or lawsuits that will have
a material effect on its financial position, results of operations or cash flows other than those described herein.

Insurance

The Company carries various insurance policies to address identified risks of loss including general liability, worker’s compensation,
automobile liability and professional liability risks. As of December 31, 2024 and 2023, a liability for known and expected but not yet reported claims of $2.6 million and $1.6 million, respectively, is reflected in Accrued and other
current liabilities in the Consolidated Balance Sheets. The determination of such claims and expenses and the appropriateness of the related liability is continually reviewed and updated by management.

The Company is self-insured for its medical coverage. The Company is responsible for the first $0.3 million of claims for each
participant enrolled in the medical coverage plan. Any claims exceeding $0.3 million are covered through a stop-loss insurance plan. A liability for expected but not yet reported claims in the amount of $1.3 million and $1.5 million
is reflected in Accrued compensation and benefits in the Consolidated Balance Sheets as of December 31, 2024 and 2023, respectively.

F-95

Surety As a requirement under certain contracts, various Legence subsidiaries procure performance and payment bonds through surety underwriters. As a condition for having surety companies write bonds on Legence subsidiary’s behalf, Legence enters into indemnification agreements with the surety companies. Total outstanding bonds were approximately $384.2 million and $269.3 million as of December 31, 2024 and 2023, respectively. Customer Guarantees As part of its normal course of business, the