American Home Shield 2008 Annual Report Download - page 26

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Table of Contents
ITEM 6. SELECTED FINANCIAL DATA
Five-Year Financial Summary
Successor
Predecessor
Year Ended
December 31,
Year Ended
December 31,
2008
Jul. 25, 2007 to
Dec. 31, 2007
Jan. 1, 2007 to
Jul. 24, 2007
(In thousands, except per share data) 2006 2005 2004
Operating Results:
Operating revenue $3,311,432 $ 1,422,358 $ 1,934,390 $3,332,703 $3,239,478 $3,068,068
Operating income(1) 197,762 33,240 143,932 324,128 340,083 324,308
Percentage of operating revenue 6.0% 2.3% 7.4% 9.7% 10.5% 10.6%
Non-operating expense 357,935 181,734 6,551 43,639 45,385 53,464
(Benefit) provision for income taxes(1),(2) (38,300) (52,182) 51,692 95,205 114,137 (45,779)
(Loss) income from continuing operations(1),(2) (121,873) (96,312) 85,689 185,284 180,561 316,623
(Loss) income from discontinued operations, net of income taxes(1),(2) (4,526) (27,208) (4,588) (15,585) 18,364 14,604
Net (loss) income $ (126,399) $ (123,520) $ 81,101 $ 169,699 $ 198,925 $ 331,227
Cash dividends per share $ — $ — $ 0.24 $ 0.46 $ 0.44 $ 0.43
Financial Position:
Total assets $7,493,627 $ 7,591,060 $3,134,441 $3,048,009 $3,161,074
Total liabilities 6,361,268 6,287,526 1,945,583 1,893,369 2,069,539
Total long-term debt outstanding 4,266,092 4,130,811 706,954 677,289 825,959
Minority interest — — 100,000 100,000 100,000
Shareholder's equity(1),(2) 1,132,359 1,303,534 1,088,858 1,054,640 991,535
The 2008 and 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 restructuring charges totaled $11.2 million for the year ended
December 31, 2008, $26.0 million for the Successor period from July 25, 2007 to December 31, 2007 and $16.9 million for the Predecessor period
from January 1, 2007 to July 24, 2007. The results also include merger charges related to the purchase of ServiceMaster by a group of investors led by
Clayton, Dubilier & Rice, Inc. The merger related charges totaled $1.2 million for the year ended December 31, 2008, $0.8 million for the Successor
period from July 25, 2007 to December 31, 2007, $41.4 million for the Predecessor period from January 1, 2007 to July 24, 2007 and $1.0 million for
the year ended December 31, 2006.
The 2006 results include restructuring charges for severance, as well as costs associated with "Project Accelerate", the Company's initiative to improve
the effectiveness and efficiency of its functional support areas, 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 restructuring charges totaled $21.6 million pre-tax and $6.9 million after-tax. The after-tax impact
of the restructuring charges includes approximately $6 million of non-recurring net operating loss carry forward benefits which became realizable to
the Company as a result of its decision to consolidate its corporate headquarters in
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