American Home Shield 2015 Annual Report Download - page 110

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Table of Contents
92
(1) The results include restructuring charges primarily related to a branch optimization project at Terminix, a reorganization of
leadership at Franchise Services Group and an initiative to enhance capabilities and reduce costs in the Company’s
headquarters functions. The table below summarizes the pre-tax and after-tax restructuring charges, by quarter, for 2015 and
2014.
2015
First Second Third Fourth
(in millions) Quarter Quarter Quarter Quarter Year
Pre-tax $ 2 $ — $ 2 $ 1 $ 5
After-tax $ 1 $ — $ 1 $ 1 $ 3
2014
First Second Third Fourth
(in millions) Quarter Quarter Quarter Quarter Year
Pre-tax $ 5 $ 1 $ 1 $ 4 $ 11
After-tax $ 3 $ 1 $ 1 $ 2 $ 7
The results for the fourth quarter of 2015 include a charge of $23 million ($14 million, net of tax) related to the 401(k) Plan.
The results for the first quarter of 2014 include a $48 million ($29 million, net of tax) non-cash impairment charge relating to
the Company’s decision to abandon efforts to deploy a new operating system at American Home Shield. The results for the
second quarter of 2014 include a reduction of this impairment charge of $1 million ($1 million, net of tax).
The results for the third quarter of 2014 include a charge of $21 million ($13 million, net of tax) for consulting agreement
termination fees paid to the Equity Sponsors in connection with the completion of the Company’s initial public offering.
The results for the first, second, third and fourth quarters of 2015 include gains of $1 million ($1 million, net of tax), $2
million ($1 million, net of tax), $3 million ($2 million, net of tax) and $2 million ($1 million, net of tax), respectively,
associated with the branch conversions. The results for the fourth quarter of 2014 include a gain of $1 million ($1 million, net
of tax) related to these branch conversions.
The results for the first, second and third quarters of 2015 include a loss on extinguishment of debt of $13 million ($9
million, net of tax), $14 million ($9 million, net of tax) and $31 million ($20 million, net of tax), respectively, related to the
redemption of the 2020 Notes. The results for the third quarter of 2014 also include a $65 million ($41 million, net of tax)
loss on extinguishment of debt related to the partial redemption of the 2020 Notes and the repayment of the Old Term
Facilities.
(2) The results for the first quarter of 2014 include pre-tax non-cash impairment charges of $139 million ($84 million, net of tax)
associated with the trade name at the Company’s former TruGreen business.
108 2015 Annual Report