Company: LGN
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001193125-25-186788
Chunk: 276

Company: Legence Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 276
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 measured at amortized cost, including
accounts receivable and contract assets. The estimate uses a loss-rate method based on historical loss activity adjusted for current market conditions and reasonable and supportable forecasts, as applicable. Accounts receivable are generally written
off when they are determined to be uncollectible after reasonable collection efforts have been made and collection appears unlikely.

See “” for additional information.

Deferred Contract Costs

Deferred contract costs, included within Prepaid expenses and other current assets, represent costs to (a) obtain a contract that are incremental because
they were only incurred as a result of securing that contract and (b) costs to fulfill a contract that occur prior to transferring a good or service to a customer. Deferred contract costs are amortized over the life of the underlying contract
consistent with the transfer to the customer of the good or service to which they relate. Both selling expenses that are not incremental to a contract and costs incurred to fulfill a contract that occur prior to transferring a good or service to a
customer that are not expected to be recovered are expensed as incurred.

Deferred Offering Costs

Offering costs, which include legal, accounting, printing, and other third-party fees that are incremental and directly related to the Company’s
anticipated equity financing such as an initial public offering (“IPO”) are capitalized within Other assets on the Consolidated Balance Sheets. These costs are deferred until the equity financing is consummated, at which point they are
recorded as a reduction of the proceeds from the equity financing. If the planned equity financing is abandoned, terminated, or significantly delayed, all deferred offering costs will be expensed immediately within operating expenses. Deferred
offering costs as of December 31, 2024 totaled $3.7 million. There were no deferred offering costs as of December 31, 2023.

Property and Equipment, Net

Property and equipment is stated at cost, net of accumulated depreciation. Interest costs are capitalized on qualified capital
projects as part of the net asset cost until the asset is ready for its intended use. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets.

Software obtained for internal use and internal and external software development costs incurred during the application development stage of projects are
generally capitalized at cost, unless relating to training or data conversion, which are expensed as incurred. Betterments, additions, and renewals that significantly extend the life of the asset are capitalized and depreciated over their useful
lives. Expenditures for repairs and maintenance