American Home Shield 2009 Annual Report Download - page 104

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 7. Acquisitions (Continued)
Prior Years
During the year ended December 31, 2008, the Successor period from July 25, 2007 to December 31, 2007 and the Predecessor period from January 1,
2007 to July 25, 2007, the Company completed several lawn care and pest control acquisitions, along with several Merry Maids' franchise acquisitions, for a
total net purchase price of $74.2 million, $17.9 million and $31.6 million, respectively, and, related to these acquisitions, the Company recorded goodwill of
$57.3 million, $13.9 million and $26.0 million, respectively, and other intangibles of $16.4 million, $3.6 million and $5.9 million, respectively.
Cash Flow Information for Acquisitions
Supplemental cash flow information regarding the Company's acquisitions, excluding the Merger, is as follows:
Successor Predecessor
Year Ended
December 31,
Jul. 25, 2007 to
Dec. 31, 2007
Jan. 1, 2007 to
Jul. 24, 2007
(In thousands) 2009 2008
Purchase price (including liabilities assumed) $ 37,722 $ 80,729 $ 18,809 $ 36,061
Less liabilities assumed (2,070) (6,503) (939) (4,452)
Net purchase price $ 35,652 $ 74,226 $ 17,870 $ 31,609
Net cash paid for acquisitions $ 32,647 $ 60,764 $ 14,889 $ 25,460
Value of shares issued — — — 753
Seller financed debt 3,005 13,462 2,981 5,396
Payment for acquisitions $ 35,652 $ 74,226 $ 17,870 $ 31,609
Note 8. Discontinued Operations
Current Year Dispositions
There were no dispositions during the year ended December 31, 2009.
Prior Year Dispositions
In the fourth quarter of 2007, management of the Company concluded that InStar did not fit within the long-term strategic plans of the Company and
committed to a plan to sell the business. InStar provided disaster response and reconstruction services to primarily commercial customers and was previously
reported as part of the Company's Other Operations and Headquarters segment. As a result of the decision to sell this business, an $18.1 million impairment
charge ($12.3 million, net of tax) was recorded in "loss from discontinued operations, net of income taxes" in the fourth quarter of 2007 to reduce the carrying
value of InStar's long-lived assets to their fair value less cost to sell. This charge was in addition to a $12.9 million ($8.8 million, net of tax) goodwill
impairment charge recorded in 2007.
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