BrightView EXEMPT Consolidated Financial Statements l

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BrightView Acquisition Holdings, Inc. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2016 and 2015 (in thousands) Going Concern In August 2014, the FASB issued ASU No. 2014-15, Disclosures of Uncertainties About an Entity’s Ability to Continue as a Going Concern. This guidance requires management to evaluate and disclose whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the financial statements are issued, along with an evaluation as to whether management’s plans alleviate that doubt. The Company adopted the guidance effective December 31, 2016. No disclosure was determined necessary as of December 31, 2016 as a result of management’s evaluation. Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. Under the new ASU, debt issuance costs related to a note shall be reported in the balance sheet as a direct deduction from the face amount of that note. The amortization of debt issuance costs is reported as interest expense. ASU No. 2015-03 is effective for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016 and would be applied retrospectively to all prior periods. Early adoption is allowed for all entities for financial statements that have not been previously issued. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. ASU 2015-15 updates the accounting guidance included in ASU 2015-03 as a result of the September 18, 2015, Emerging Issues Task Force meeting, in which the Task Force indicated that its staff would not object to an entity deferring and presenting costs related to revolving debt arrangements as an asset. The Company has adopted this update as of December 31, 2016 (See Note 2). This update was applied on a retrospective basis and has been reclassified and presented in the accompanying Consolidated Balance Sheet as a direct deduction from the carrying amount of the related long-term debt, net of discount. The amount reclassified was $50,390 as of December 31, 2015. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases. The updated accounting guidance requires lessees to recognize all leases on their balance sheet as a right-of-use asset and a lease liability with the exception of short-term leases. For income statement purposes, the criteria for recognition, measurement and presentation of expense is largely similar to previous guidance, but without the requirement to use bright-line tests in the determination of lease classification. The updated accounting guidance for a lessor is largely unchanged from previous guidance but has been updated to align with certain changes to the lessee model and the new revenue recognition standard. The updated accounting guidance is effective for the Company as of January 1, 2020 and early adoption is permitted. The updated accounting guidance must be adopted using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company is currently evaluating the impact the updated accounting guidance will have on its consolidated financial statements. Share-Based Compensation In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation, Improvements to Employee Share-Based Payment Accounting. The updated accounting guidance was issued as part of the FASB Simplification Initiative and affects several aspects of accounting for share-based compensation, including income tax consequences and classification on the statement of cash flows. The updated accounting guidance is effective for the Company as of January 1, 2018 and early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This guidance requires that an entity recognizes the income tax consequences of an intra- entity transfer of an asset other than inventory when the transfer occurs. The guidance is effective for the Company as of December 31, 2019 and early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. 12 Confidential