EX-99.1 11 c18181exv99w1.htm REPORT OF ERNST & YOUNG LLP 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 June 30, 2007, and July 1, 2006, and for each of the three years in the period ended June 30, 2007, and have issued our report thereon dated August 27, 2007 (included elsewhere in this Form 10-K). Our audits also included the financial statement schedule listed in Item 15(a) of this Annual Report (Form 10-K) for the year ended June 30, 2007. 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
   
August 27, 2007
   
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
                                       
June 30, 2007
  $ 3,011     $ 1,980     $     $ 1,586     $ 3,405  
     
July 1, 2006
  $ 2,890     $ 1,905     $     $ 1,784     $ 3,011  
     
July 2, 2005
  $ 2,603     $ 2,040     $     $ 1,753     $ 2,890  
     
Inventory Reserve
                                       
     
June 30, 2007
  $ 2,312     $ 232     $     $ 235     $ 2,309  
     
July 1, 2006
  $ 2,409     $ 152     $     $ 249     $ 2,312  
     
July 2, 2005 (1)
  $ 579     $ 219     $ 2,088     $ 477     $ 2,409  
     
 
(1)   The increase in the reserve for inventory in fiscal year 2005 was related to the purchase of our Lion Uniform Group.