11.14. Real Estate As a result of a November 9, 2005 Real Estate Transaction, substantially all of the real estate owned by KLC OpCo was transierred to KLC PropCo. Although the expectation is that newly acquired real estate will be owned by KLC PropCo and leased back to KLC OpCo, KLC GpCo continues to be actively involved in new center design, development and management. In addition to development of new centers, the team is responsible for maintaining existing centers. The real estate group within KLC OpCo is headed by Wayne Pipes, Vice President. 11.15. Environmental KLC OpCo is not aware of any existing environmental conditions that currently or in the future could reasonably be expected to have a material adverse effect on its financial position, operating results or cash flows. It has not incurred material expenditures to address environmental conditions at any property. However, it has not undertaken an in-depth environmental review of ail of its owned and leased centers. Consequently, there may be material environmental liabilities of which it is unaware. In addition, future laws, ordinances or regulations may impose material environmental liability, and the current environmental condition of the centers may be adversely affected by conditions at locations in the vicinity of those centers (such as the presence of leaking underground storage tanks) or by third parties unrelated to the company. 11.16. Summary Financial Information and Projections Discussion The following summary historical and projected financial data should be read in conjunction with the financial statements and “Management's Discussion and Analysis of KLC’s Pro Forma Results of Operations” presented elsewhere in this Memorandum. See also “Non-GAAP Financial Measures” elsewhere in this Memorandum for a discussion of the derivation and limitations of Adjusted EBITDA and Adjusted EBITDAR. The historical information is pro forma for the effects of the acquisition of KinderCare in January 2005 an