American Home Shield 2015 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2015 American Home Shield annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Table of Contents
69
(1) Presented below is a reconciliation of Reportable Segment Adjusted EBITDA to Net Income (Loss):
Year Ended December 31,
(In millions) 2015 2014 2013
Reportable Segment Adjusted EBITDA:
Terminix $ 347 $ 309 $ 266
American Home Shield 205 179 145
Franchise Services Group 77 78 78
Reportable Segment Adjusted EBITDA $ 630 $ 566 $ 489
Unallocated cor
p
orate ex
p
enses $
(
9
)
$
(
9
)
$
(
39
)
Depreciation and amortization expense (84) (100) (99)
401(k) Plan corrective contribution (23) — —
Non-cash stock-based compensation expense (10) (8) (4)
Restructuring charges (5) (11) (6)
Gain on sale of Merry Maids branches 7 1 —
Non-cash impairment of software and other related costs — (47) —
Management and consulting fees — (4) (7)
Consulting agreement termination fees — (21) —
Loss from discontinued operations, net of income taxes (2) (100) (549)
Provision for income taxes (107) (40) (43)
Loss on extinguishment of debt (58) (65) —
Interest expense (167) (219) (247)
Other non-operating expenses (12) — (2)
Net Income (Loss) $ 160 $ (57) $ (507)
___________________________________
(2) Assets of discontinued operations are not included in the business segment table.
(3) There are no adjustments necessary to reconcile total depreciation and amortization as presented in the business segment
table to consolidated totals. Amortization of debt issue costs is not included in the business segment table. See Note 4 to the
consolidated financial statements for information relating to segment goodwill.
Note 4. Goodwill and Intangible Assets
Goodwill and indefinite-lived intangible assets are not amortized and are subject to assessment for impairment by applying a
fair-value based test on an annual basis or more frequently if circumstances indicate a potential impairment. The Company’s annual
assessment date is October 1. There were no goodwill or trade name impairment charges recorded in continuing operations during the
years ended December 31, 2015, 2014, and 2013. There were no accumulated impairment losses recorded in continuing operations as
of December 31, 2015, 2014 and 2013.
The table below summarizes the goodwill balances for continuing operations by reportable segment:
American Franchise
(In millions) Terminix Home Shield Services Group Total
Balance as of December 31, 2013 $ 1,480 348 190 2,018
Acquisitions 18 34 1 53
Other (1) (1) — (1) (3)
Balance as of December 31, 2014 1,497 381 191 2,069
Acquisitions 74 — — 74
Disposals — — (9) (9)
Other (1) (4) — (1) (5)
Balance as of December 31, 2015 $ 1,567 $ 381 $ 182 $ 2,129
___________________________________
(1) Reflects the impact of foreign exchange rates.
2015 Annual Report 85