American Home Shield 2008 Annual Report Download - page 129

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Table of Contents
The 2007 results include restructuring charges for severance, as well as costs associated with Fast Forward, and payments for employee retention and
severance related to the Company's decision to consolidate its corporate headquarters into its operations support center in Memphis, Tennessee and
close its former headquarters in Downers Grove, Illinois.
The 2006 results include restructuring charges for severance, as well as costs associated with Project Accelerate, and accruals for employee retention
and severance to be paid in future periods that are related to the Company's decision to consolidate its corporate headquarters into its operations
support center in Memphis, Tennessee and close its former headquarters in Downers Grove, Illinois. The after-tax impact of the restructuring charges
includes the benefit of state tax incentives granted to the Company as a result of its decision to consolidate its corporate headquarters in Memphis,
Tennessee.
The table below summarizes the quarterly impacts of the restructuring charges.
2008
($ in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Year
Pre-tax $ (3.3) $ (4.0) $ (1.8) $ (2.1)$(11.2)
After-tax (1.9) (2.5) (1.2) (1.3) (6.9)
2007
($ in millions)
First
Quarter
Second
Quarter
Jul. 1, 2007 to
Jul. 24, 2007
Predecessor
period
Jul. 25, 2007 to
Sep. 30, 2007
Fourth
Quarter
Successor
period
Pre-tax $ (7.1) $ (8.3) $ (1.5) $ (16.9) $ (8.2)$(17.8) $ (26.0)
After-tax (4.4) (5.1) (1.2) (10.7) (5.2) (10.7) (15.9)
2006
($ in millions)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter Year
Pre-tax $ (3.5) $ (6.3) $ (0.9)$(10.9)$(21.6)
After-tax (2.2) (3.8) (0.5) (0.4) (6.9)
In the fourth quarter of 2006, the Company recorded a reduction in income tax expense of $7 million resulting from the resolution of state tax items
relating to a prior non-recurring transaction.
In the fourth quarter of 2008, the Company recorded a non-cash impairment of $60.1 million to reduce the carrying value of its trade names as a result
of its annual impairment testing of goodwill and indefinite-lived intangible assets. See "Critical Accounting Policies and Estimates" for further details.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
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