Company: LGN
Filing Date: 2025-07-15
Form Type: DRS/A
Source: 0000950123-25-006399
Chunk: 338

Company: Legence Corp.
Filing Date: 2025-07-15
Form: DRS/A
Chunk 338
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 and December 31, 2024 was calculated using a discounted cash flow methodology under the income approach, using interest rate curves, risk premiums, and adjustments for the size and subordination of the instrument (Level 3 measurement). The carrying value of the remaining notes payable and finance lease liabilities approximates fair value as of March 31, 2025 and December 31, 2024. Note 9—Derivatives I nterest Rate Swaps:The Company has multiple interest rate swap agreements designated as cash flow hedges. The Company utilizes these interest rate swap agreements to reduce exposure to fluctuations in variable interest rates for future interest payments on its term loan. The total notional amount is $815.0 million as of both March 31, 2025 and December 31, 2024. Failure of the interest rate swap counterparties to make payments may result in the loss of any potential benefit to the Company under the interest rate swap agreements. The Company mitigates risk of non-performanceby counterparties by dealing with highly rated counterparties. The Company does not use financial instruments for trading or speculative purposes. Additional information regarding the fair value of the Company’s interest rate swaps can be found in “ Note 8—Fair Value Measurements.” The fair value of derivative instruments is presented on the Condensed Consolidated Balance Sheets, as follows (in thousands):

|                                               |     |     | Balance Sheet Location |     |   | March 31, 2025 |     |   | December 31, 2024 |
|:----------------------------------------------|:----|:----|:-----------------------|:----|:--|---------------:|:----|:--|------------------:|
| Derivatives designated as hedging instruments |     |     |                        |     |   |                |     |   |                   |
| Interest rate swap asset (short-term)         |     |     | Prepaid expenses       
 and other current      
 assets                 |     | $ |          3,388 |     | $ |             5,861 |
| Interest rate swap asset (long-term)          |     |     | Other assets           |     | $ |            265 |     | $ |             3,387 |
| Interest rate swap liability (short-term)     |     |     | Accrued and other      
 current liabilities    |     | $ |            175 |     | $ |                 — |
| Interest rate swap liability (long-term)      |     |     | Other