American Home Shield 2006 Annual Report Download - page 6

Terminix is a leading provider of termite and pest control services in the United States serving both residential and commercial
customers. As of December 31, 2005, Terminix provided these services in 47 states and the District of Columbia through 364
company-owned locations and 133 franchised locations. As of December 31, 2005, Terminix also provided termite and pest control
services through a subsidiary in Mexico and had entered into licensing arrangements to provide these services in 37 other countries,
primarily in the Caribbean and the Middle East.
American Home Shield Segment
The American Home Shield segment provides home warranty contracts for systems and appliances primarily under the American
Home Shield brand name and home inspection services primarily under the AmeriSpec brand name. Revenues derived from the
American Home Shield segment constituted 16% of the revenue from continuing operations of the consolidated ServiceMaster
enterprise in each of 2005, 2004 and 2003. The American Home Shield and AmeriSpec businesses are seasonal in nature. Sales
volume in the American Home Shield segment depends, in part, on the number of home resale closings, which historically has been
highest in the spring and summer months. American Home Shield's costs related to service call volume is highest in the summer
months, especially during periods of unseasonably warm temperatures.
American Home Shield. American Home Shield is a leading provider of home warranty contracts for systems and
appliances in the United States. It provides residential customers with contracts to repair or replace electrical, plumbing, central
heating and central air conditioning systems, hot water heaters and appliances that break down due to normal wear and tear and
administers those contracts through independent repair contractors and American Residential Services. As of December 31, 2005,
American Home Shield issued and administered home warranty contracts in 49 states and the District of Columbia and had no
international operations.
AmeriSpec. AmeriSpec is a leading provider of home inspection services in the United States serving residential customers.
As of December 31, 2005, AmeriSpec provided these services in 47 states and the District of Columbia through two company-
owned locations and 224 franchised locations, and AmeriSpec also provided home inspection services through a subsidiary in
Canada.
Other Operations Segment
The Other Operations segment provides residential and commercial disaster restoration and cleaning services primarily under the
ServiceMaster and ServiceMaster Clean brand names, domestic house cleaning services primarily under the Merry Maids brand
name and on-site furniture repair and restoration services primarily under the Furniture Medic brand name. The Other Operations
segment also includes ServiceMaster's headquarters functions. Revenues derived from the Other Operations segment constituted
5% of the revenue from continuing operations of the consolidated ServiceMaster enterprise in each of 2005, 2004 and 2003.
ServiceMaster Clean. ServiceMaster Clean is a leading franchisor in the residential and commercial cleaning field in the
United States. As of December 31, 2005, ServiceMaster Clean provided these services in all 50 states and the District of Columbia
through 3,189 franchise licenses. As of December 31, 2005, ServiceMaster Clean also provided disaster restoration and cleaning
services through subsidiaries in Canada, Ireland, the United Kingdom and Spain and had entered into licensing arrangements to
provide these services in 18 other countries, primarily in Asia and the Middle East.
Merry Maids. Merry Maids is a leading provider of domestic house cleaning services in the United States. As of December
31, 2005, these services were provided in 48 states and the District of Columbia through 63 company-owned locations and 781
franchise licenses. As of December 31, 2005, Merry Maids also provided domestic house cleaning services through subsidiaries in
Canada, Denmark, Ireland and the United Kingdom and had entered into licensing arrangements to provide these services in eight
other countries, primarily in Asia.
Furniture Medic. Furniture Medic is a leading provider of on-site furniture repair and restoration services in the United
States serving residential customers. As of December 31, 2005, Furniture Medic provided these services in 49 states and the District
of Columbia through 354 franchise licenses. As of December 31, 2005, Furniture Medic also provided on-site furniture repair and
restoration services through subsidiaries in Canada and the United Kingdom and had entered into licensing arrangements to provide
these services in France and Saudi Arabia.
Businesses Held Pending Sale
American Residential Services and American Mechanical Services provide plumbing, drain cleaning, heating, ventilation, air
conditioning and electrical services primarily under the ARS Service Express, American Mechanical Services and Rescue Rooter
brand names. The American Residential Services and American Mechanical Services businesses are seasonal in nature, with the
greatest activity occurring in May through August during the peak air conditioning season.
American Residential Services. American Residential Services, which includes the businesses of ARS Service Express and
Rescue Rooter, is a leading provider of plumbing, drain cleaning, heating, ventilation, air conditioning and electrical services in the
United States serving residential customers. As of December 31, 2005, American Residential Services provided these services in 25
states and the District of Columbia through 61 company-owned locations and had no international operations.
American Mechanical Services. American Mechanical Services is a leading provider of heating, ventilation, air
conditioning and electrical services in the United States serving commercial customers. As of December 31, 2005, American
Mechanical Services
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