American Home Shield 2004 Annual Report Download - page 46

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44 ServiceMaster 2004 annual report
Business Segment Reporting
The business of the Company is conducted through five operating
segments: TruGreen, Terminix, American Home Shield,
ARS/AMS and Other Operations. In accordance with Statement
of Financial Accounting Standards No. 131, the Company’s
reportable segments are strategic business units that offer different
services. The TruGreen segment provides residential and
commercial lawn care and landscaping services through the
TruGreen ChemLawn and TruGreen LandCare companies.
The Terminix segment provides termite and pest control services
to residential and commercial customers. The American Home
Shield segment provides home warranties to consumers that
cover heating, ventilation, air conditioning (HVAC), plumbing
and other home systems and appliances. This segment also
includes home inspection services provided by AmeriSpec. The
ARS/AMS segment provides HVAC and plumbing installation
and repair services provided under the ARS Service Express,
American Mechanical Services and Rescue Rooter brand
names. The Other Operations segment includes the franchise
and company-owned operations of ServiceMaster Clean, Furni-
ture Medic and Merry Maids, which provide disaster restoration,
cleaning, furniture repair and maid services. This segment also
includes the Company’s headquarters operations, which provide
various technology, marketing, finance, legal and other support
services to the business units.
Information regarding the accounting policies used by the Com-
pany is described in the Significant Accounting Policies Note.
The Company derives substantially all of its revenue from cus-
tomers in the United States with less than one percent generated
in foreign markets. Operating expenses of the business units con-
sist primarily of direct costs. Identifiable assets are those used in
carrying out the operations of the business unit and include
intangible assets directly related to its operations.
Segment information for the years ended December 31, 2004,
2003, and 2002 is presented below.
notes to the consolidated financial statements