Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 123

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 123
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 earnings of joint venture.

Interest Expense, Net of Capitalized Interest

Interest expense includes interest on the indebtedness, amortization of deferred debt issuance costs and debt issuing discounts, as well as
gains and losses from interest rate related derivative instruments.

Interest Income

Interest income includes interest earned on our cash balances and short-term marketable securities.

Credit Agreement Amendment Fees

Credit agreement amendment fees represents costs incurred in connection with our debt refinancings.

Income Tax (Benefit) Expense

We are subject to federal, state and local taxes based on income in the jurisdictions in which we operate. Accordingly, our effective tax rate
is subject to significant variation due to several factors, including variability in our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, changes in how we do business,
acquisitions, tax audit developments, changes in our deferred tax assets and liabilities, changes in statutes, regulations, case law and administrative practices, principles and interpretations related to tax and relative changes of expenses or
losses for which tax benefits are not recognized.

Legence Parent is treated as a partnership for federal and state income tax purposes
and indirectly owns 100% of the shares of multiple corporations. As a result, the members of Legence Parent are taxed individually on their proportionate share of our income or losses. The corporations owned by Legence Parent are subject to entity
level taxation and, as a result, provision for federal, state and local income taxes.

Income taxes for these entities are provided for
under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the consolidated financial

81

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when
necessary to reduce deferred tax assets to an amount that is more likely than not to be realized.

Factors Affecting the Comparability of Our Financial Results

Our future results of operations may not be comparable to the historical results of operations of our predecessor for the
periods presented, primarily for the reasons described below.

Corporate Reorganization

Our Consolidated Financial Statements included in this prospectus are based on the financial statements of our predecessor, Legence Holdings
LLC. As a result, the historical consolidated financial data may not give you an accurate indication of what our actual results would have