American Home Shield 2002 Annual Report Download - page 47

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Segment information for the years ended December 31,
2002, 2001, and 2000 is presented below. As discussed in
the “Restatement” Note, the information for 2001 and
2000 has been restated.
SFAS 142, “Goodwill and Other Intangible Assets”,
eliminates the amortization of goodwill and intangible
assets with indefinite lives beginning in 2002. The table
below also presents “Proforma” information for 2001
and 2000 which eliminates amortization expense related
to goodwill and intangible assets with indefinite lives,
so that these periods are presented on a comparable
basis to the 2002 information.
ServiceMaster 43
Business Segment Table
(In thousands) 2002 % Change 2001 % Change 2000
Operating Revenue:
TruGreen $1,372,984 0% $1,368,770 0% $1,365,470
Terminix 924,384 9 845,453 16 728,299
American Home Shield 423,526 15 368,951 17 315,266
ARS/AMS 718,892 (12) 820,177 4 787,026
Other Operations 149,303 N/A 158,094 (30) 225,741
Total Operating Revenue $ 3,589,089 1% $3,561,445 4% $3,421,802
Operating Income:
TruGreen $ 171,235 11% $ 154,301 (4%) $ 160,982
Terminix 127,441 23 103,925 26 82,176
American Home Shield 47,890 104 23,512 29 18,272
ARS/AMS 17,342 (57) 39,978 (14) 46,444
Other Operations (1) (22,572) N/A (344,893) N/A 12,977
Total Operating Income (1) $ 341,336 N/A $ (23,177) N/A $ 320,851
Operating Income – SFAS 142 Proforma:
TruGreen $ 171,235 (5%) $ 180,676 (3%) $ 186,856
Terminix 127,441 4 122,979 25 98,215
American Home Shield 47,890 84 25,993 25 20,751
ARS/AMS 17,342 (65) 49,210 (10) 54,607
Other Operations (1) (22,572) N/A (341,582) N/A 18,655
Total Operating Income –
SFAS 142 Proforma (1) $ 341,336 N/A $ 37,276 N/A $ 379,084
Capital Employed: (2)
TruGreen $ 1,011,846 (2%) $1,031,387 (5%) $1,090,099
Terminix 620,863 4 594,970 15 518,010
American Home Shield 100,026 21 82,374 (4) 86,236
ARS/AMS 416,068 (4) 431,756 3 417,931
Other Operations 5,681 N/A 324,570 (64) 907,764
Total Capital Employed $ 2,154,484 (13%) $2,465,057 (18%) $3,020,040
Identifiable Assets:
TruGreen $ 1,070,031 (1%) $1,082,135 (9%) $1,192,942
Terminix 841,437 2 823,333 20 685,126
American Home Shield 376,059 16 323,229 10 292,587
ARS/AMS 489,366 (6) 519,026 1 514,408
Other Operations 638,045 (27) 873,522 (30) 1,254,647
Total Identifiable Assets $ 3,414,938 (6%) $3,621,245 (8%) $3,939,710
Depreciation & Amortization Expense:
TruGreen $ 25,163 (53%) $ 53,140 2% $ 52,339
Terminix 11,150 (64) 30,822 7 28,875
American Home Shield 5,583 (26) 7,516 4 7,253
ARS/AMS 9,166 (49) 18,048 7 16,857
Other Operations 6,814 (40) 11,277 11 10,200
Total Depreciation &
Amortization Expense $ 57,876 (52%) $ 120,803 5% $ 115,524
Capital Expenditures:
TruGreen $ 11,803 107% $ 5,709 (76%) $ 23,792
Terminix 17,013 63 10,427 47 7,075
American Home Shield 4,794 (40) 8,033 104 3,935
ARS/AMS 5,658 (20) 7,093 (15) 8,342
Other Operations 21,331 104 10,447 (22) 13,316
Total Capital Expenditures $ 60,599 45% $ 41,709 (26%) $ 56,460
(1) In the fourth quarter of 2001, the Company recorded a pretax charge of $345 million, related primarily to goodwill and asset impairments as
well as other items.
(2) Capital employed represents the segment’s total assets less liabilities (exclusive of debt balances)
Notes to Consolidated Financial Statements