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Table of Contents
99
Notes to Condensed Parent Company Only Financial Statements
1. Basis of Presentation
The condensed financial statements of ServiceMaster Global Holdings, Inc. (“Parent Company”) are required as a result of
the restricted net assets of the Parent Company’s consolidated subsidiaries exceeding 25% of the Parent Company’s consolidated net
assets as of December 31, 2015. All consolidated subsidiaries of the Parent Company are wholly owned. The primary source of
income for the Parent Company is equity in its subsidiaries’ earnings.
Pursuant to rules and regulations of the SEC, the unconsolidated condensed financial statements of the Parent Company do
not reflect all of the information and notes normally included with financial statements prepared in accordance with GAAP. Therefore,
these condensed financial statements should be read in conjunction with the consolidated financial statements and related notes
included in this Annual Report on Form 10-K.
The Parent Company has accounted for its subsidiaries under the equity method in the unconsolidated condensed financial
statements.
2. Commitments and Contingencies
The Parent Company and its subsidiaries are parties to environmental and other legal matters. For further discussion of
commitments, guarantees and contingencies, see Note 9 to the consolidated financial statements of ServiceMaster Global Holdings,
Inc. included in this Annual Report on Form 10-K.
3. Long-Term Debt
On April 19, 2013, the Parent Company entered into a revolving promissory note with ServiceMaster Company, LLC with a
maximum borrowing capacity of $25 million that was scheduled to mature on April 18, 2018. Amounts outstanding under this
agreement bore interest at the rate of five percent per annum. As of December 31, 2013, the Parent Company had borrowed $14
million under this note. The funds borrowed under this note were used to repurchase shares of common stock from associates who
have left the Company. On July 1, 2014, the Parent Company used a portion of the proceeds from the initial public offering to repay
this inter-company loan. As a result of this repayment, the Parent Company did not have a balance outstanding under this note as of
December 31, 2014 and 2015.
2015 Annual Report 115