Company: LGN
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001193125-25-186788
Chunk: 285

Company: Legence Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 285
---
 not “more likely than not” that a tax benefit will be sustained, no tax benefit is recognized. The Company classifies interest
expense and penalties relating to income tax in the Consolidated Statements of Operations as Income tax expense (benefit).

Earnings Per Share

Earnings per share is not presented in the Consolidated Financial Statements as the Company is a single member limited liability company.

Recent Accounting Pronouncements

Income Statement—Expense Disaggregation—In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03,
“Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures” (“Update 2024-03”). This update requires disclosure, in the notes to the
financials statements, of 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.

F-24

Legence Holdings LLC and Subsidiaries

Notes to 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. Update 2024-01
is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years, with early adoption permitted. The guidance may be applied on either a retrospective or a prospective basis. The Company is
currently evaluating the impact of Update 2024-01 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,