American Home Shield 2008 Annual Report Download - page 88

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Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 4. Business Segment Reporting (Continued)
In accordance with SFAS 131, "Disclosures about Segments of an Enterprise and Related Information", the Company's reportable segments are strategic
business units that offer different services. The TruGreen LawnCare segment provides residential and commercial lawn care services. The TruGreen
LandCare segment provides landscaping services primarily to commercial customers. The Terminix segment provides termite and pest control services to
residential and commercial customers. The American Home Shield segment provides home warranties to consumers that cover HVAC, plumbing and other
home systems and appliances. The Other Operations and Headquarters segment includes the franchised and Company-owned operations of ServiceMaster
Clean, AmeriSpec, Furniture Medic and Merry Maids, which provide primarily residential disaster restoration, commercial cleaning, carpet and upholstery
cleaning, home inspection services, furniture repair and house cleaning services. The Other Operations and Headquarters segment also includes the
Company's headquarters operations, which provide various technology, marketing, finance, legal and other support services to the business units.
Information regarding the accounting policies used by the Company is described in Note 1. The Company derives substantially all of its revenue from
customers and franchisees in the United States with less than two 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.
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