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BrightView Acquisition Holdings, Inc. <br />Notes to the Consolidated Financial Statements <br />For the Years Ended December 31, 2016 and 2015 <br />(in thousands) <br />1.Business <br />BrightView Acquisition Holdings, Inc. (“BrightView” or the “Company”) provides landscape maintenance and <br />enhancements, landscape development, snow removal and other landscape related services for commercial <br />customers throughout the United States. Landscape maintenance services are generally provided under cancelable <br />contracts ranging from 1 to 5 years to a diverse set of customers with one or more sites, including regional and <br />national commercial, retail, and industrial property owners, corporations, residential communities, schools and <br />universities, hotels, hospitals, golf courses and governmental agencies. Landscape enhancements are generally <br />provided as additional services to contract customers as annual improvements, small redesign work or other one- <br />time events that are outside the scope of the base maintenance contract. Landscape maintenance and enhancement <br />services generally include grass mowing, planting and care of flower beds, tree and shrub pruning, bed edging, <br />controlling weeds and pests, fertilizing, and planting of grass, shrubs and trees. In addition to landscape maintenance <br />and enhancements, BrightView provides large scale landscape development services to clients, including <br />architecture, design, and installation. In many markets, BrightView also provides snow removal and ice melting <br />services to landscape customers as well as some snow-only customers. BrightView provides other landscape and <br />ancillary services in specialty areas, including golf course maintenance, tree care, nursery and a landscape franchise <br />business. The Company was previously named Brickman Acquisition Holdings, Inc. The BrightView brand name <br />and logo were announced in 2014 and the applicable updates to legal entity and tax filing names were completed as <br />of April 12, 2016. The process to change all other brand related aspects of the business began during 2015 and will <br />continue throughout 2017 as the Company rebrands its vehicle fleet, office locations, company websites, team <br />member uniforms, and various documents and forms. <br />The Company is a wholly-owned subsidiary of BrightView Parent L.P. (“Parent”), an affiliate of Kohlberg Kravis <br />Roberts & Co. L.P. (“KKR”). The Parent and Company were formed through a series of transactions to acquire the <br />Company on December 18, 2013 (“Acquisition”). <br />2.Summary of Significant Accounting Policies <br />Basis of Presentation <br />These consolidated financial statements have been prepared by the Company in accordance with accounting <br />principles generally accepted in the United States of America (“GAAP”) and include the accounts of the <br />Company and its wholly-owned subsidiaries which are directly or indirectly owned by the Company. All inter- <br />company transactions and account balances have been eliminated. <br />Use of Estimates <br />The preparation of financial statements in conformity with GAAP requires management to make estimates and <br />assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and <br />liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the <br />period. On an ongoing basis, management reviews its estimates, including those related to allowances for doubtful <br />accounts, revenue recognition, self-insurance reserves, estimates related to the Company’s assessment of goodwill <br />for impairment, useful lives for depreciation and amortization, realizability of deferred tax assets, and litigation <br />based on currently available information. Changes in facts and circumstances may result in revised estimates and <br />actual results may differ from estimates. <br />Cash and Cash Equivalents <br />Cash and cash equivalents include deposits in banks and money market funds with maturities of less than three <br />months at the time of deposit or investment. <br />Accounts Receivable <br />Trade accounts receivables are recorded at the invoiced amount and do not bear interest. The Company reserves for <br />all accounts that are deemed to be uncollectible and reviews its allowance for doubtful accounts regularly. The <br />allowance is based on the age of receivables and a specific identification of receivables considered at risk (See Note <br />4). <br />7 <br />Confidential