EX-99.1 12 c08403exv99w1.htm REPORT OF ERNST & YOUNG LLP AND SCHEDULE II exv99w1
 

EXHIBIT 99.1
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders
G&K Services, Inc.
We have audited the consolidated financial statements of G&K Services, Inc. as of July 1, 2006, and July 2, 2005, and for each of the three years in the period ended July 1, 2006, and have issued our report thereon dated September 8, 2006 (included elsewhere in this Form 10-K). Our audits also included the financial statement schedule listed in Item 15(a) of this Registration Statement. This schedule is the responsibility of the Company’s management. Our responsibility is to express an opinion based on our audits.
In our opinion, the financial statement schedule referred to above, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.
     
 
   
/s/ Ernst & Young LLP
   
     
Ernst & Young LLP
   
 
   
Minneapolis, Minnesota
   
September 8, 2006
   
G&K Services, Inc.
Schedule II — Valuation and Qualifying Accounts and Reserves
(In thousands)
                                         
            Additions            
    Balance at   Charged to   Charged to            
    Beginning of   Costs and   Other           Balance at
Description   Year   Expenses   Accounts   Deductions   End of Year
Allowance for Doubtful Accounts
                                       
July 1, 2006
  $ 2,890     $ 1,905     $     $ 1,784     $ 3,011  
July 2, 2005
  $ 2,603     $ 2,040     $     $ 1,753     $ 2,890  
July 3, 2004
  $ 3,687     $ 2,171     $     $ 3,255     $ 2,603  
Inventory Reserve
                                       
July 1, 2006
  $ 2,409     $ 152     $     $ 249     $ 2,312  
July 2, 2005 (1)
  $ 579     $ 219     $ 2,088     $ 477     $ 2,409  
July 3, 2004
  $ 581     $ 168     $     $ 170     $ 579  
 
(1)   The increase in the reserve for inventory in fiscal year 2005 was related to the purchase of our Lion subsidiary.