American Home Shield 2007 Annual Report Download - page 97

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SCHEDULE II
THE SERVICEMASTER COMPANY
VALUATION AND QUALIFYING ACCOUNTS
(In thousands)
Balance at
Beginning of
Period
Additions
Charged to
Costs and
Expenses Deductions (1) Balance at
End of Period
AS OF AND FOR THE YEAR ENDING DECEMBER 31, 2006
Continuing Operations -
Allowance for doubtful accounts
Accounts receivable $ 16,456 $ 47,415 (4) $ 38,661 $ 25,210
Notes receivable 1,246 542 239 1,549
Reserves related to strategic actions in the fourth quarter of 2001 (2) 7,345 (162) 655 6,528
Reserves related to Project Accelerate and consolidation of corporate
headquarters (3) — 21,648 10,044 11,604
Remaining liabilities from discontinued operations (5)
LandCare Construction 3,112 (53) 1.345 1,714
LandCare utility line clearing business 3,238 (266) 897 2,075
Certified Systems, Inc. and other 9,686 1,856 4,447 7,095
AS OF AND FOR THE YEAR ENDING DECEMBER 31, 2005
Continuing Operations -
Allowance for doubtful accounts
Accounts receivable $ 19,526 $ 42,574 $ 45,644 $ 16,456
Notes receivable 2,213 307 1,274 1,246
Reserves related to strategic actions in the fourth quarter of 2001 (2) 6,795 1,250 700 7,345
Remaining liabilities from discontinued operations
LandCare Construction 4,492 985 2,365 3,112
LandCare utility line clearing business 6,616 (535) 2,843 3,238
Certified Systems, Inc. and other 8,485 2,526 1,325 9,686
International businesses 11,000 (11,000) — —
AS OF AND FOR THE YEAR ENDING DECEMBER 31, 2004
Continuing Operations -
Allowance for doubtful accounts
Accounts receivable $ 19,770 $ 42,133 $ 42,377 $ 19,526
Notes receivable 3,149 557 1,493 2,213
Reserves related to strategic actions in the fourth quarter of 2001 (2) 10,786 (2,319) 1,672 6,795
Remaining liabilities from discontinued operations
LandCare Construction 7,152 2,021 4,681 4,492
LandCare utility line clearing business 9,011 1,283 3,678 6,616
Certified Systems, Inc. and other 11,307 176 2,998 8,485
International businesses 21,306 (9,151) 1,155 11,000
(1) Deductions in the allowance for doubtful accounts for accounts and notes receivable reflect write-offs of uncollectible
accounts. Deductions for the remaining items reflect cash payments.
(2) Includes accruals for residual value guarantees on leased properties, severance for former executives and terminated
employees and transaction and other costs.
(3) Includes severance, employee retention incentives and third party professional fees and expenses directly related to
implementing the organizational changes.
(4) Includes $4 million not charged to expense in 2006, but acquired as part of InStar's opening balance sheet.
(5) At December 31, 2006, there were approximately $4 million of liabilities of ARS and AMS, consisting of severance and
wind-down costs that are expected to be paid in the early part of 2007.
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