American Home Shield 2008 Annual Report Download - page 90
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Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 4. Business Segment Reporting (Continued)
Presented below is a reconciliation of segment operating income to (loss) income from continuing operations before income taxes.
Successor
Predecessor
(In thousands)
Year Ended
Dec. 31, 2008
Jul. 25, 2007 to
Dec. 31, 2007
Jan. 1, 2007 to
July 24, 2007
Year Ended
Dec. 31, 2006
Segment Operating Income $ 197,762 $ 33,240 $ 143,932 $ 324,128
Non-operating expense (income):
Interest expense 347,231 177,938 31,643 61,341
Interest and net investment loss (income) 10,052 3,563 (28,624) (25,942)
Minority interest and other expense, net 652 233 3,532 8,240
(Loss) Income from Continuing Operations before Income Taxes $ (160,173) $ (148,494) $ 137,381 $ 280,489
As described in Note 1, the 2008 results include a non-cash impairment of trade names of $60.1 million to reduce the carrying value of trade names as
a result of ServiceMaster's annual impairment testing of goodwill and indefinite-lived intangible assets. See Note 1 for a summary of the trade name
impairment charge by segment. 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 2006 results include restructuring charges of $21.6 million 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.
Restructuring charges by segment are presented below:
Successor
Predecessor
(In thousands)
Year Ended
Dec. 31, 2008
Jul. 25, 2007 to
Dec. 31, 2007
Jan. 1, 2007 to
Jul. 24, 2007
Year Ended
Dec. 31, 2006
Restructuring charges:
TruGreen LawnCare $ 315 $ 405 $ — $ —
TruGreen LandCare 337 7,920 — —
Terminix 57 76 — —
American Home Shield 729 5,874 — —
Other Operations and Headquarters 9,808 11,741 16,919 21,648
Total Restructuring charges $ 11,246 $ 26,016 $ 16,919 $ 21,648
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