American Home Shield 2003 Annual Report Download - page 46

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44    ServiceMaster
termite and pest control services to residential and commercial
U.S. 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,
Furniture 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 and other support services to the business units. In
the third quarter of 2003 the Company sold substantially all of
the assets and related operational obligations of the utility
line clearing operations of TruGreen LandCare.As a result,
the utility line clearing operations are now included in
“Discontinued Operations”for all periods presented.
Notes to Consolidated Financial Statements
Information regarding the accounting policies used by the
Company is described in the Significant Accounting Policies
Note. The Company derives substantially all of its revenues
from customers in the United States with less than one percent
generated in foreign markets. Operating expenses of the
business units consist 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,
2003, 2002, and 2001 is presented below.
Beginning in 2002, SFAS 142, “Goodwill and Other Intangi-
ble Assets”, eliminates the amortization of goodwill and
intangible assets with indefinite lives. The table below pre-
sents “Proforma”information for 2001 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 2003 and 2002 information.