American Home Shield 2009 Annual Report Download - page 118

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 16. Receivable Sales (Continued)
As part of the annual review of the facility, which occurred on July 21, 2009, this Purchaser agreed to continue its participation in the arrangement at least
through July 20, 2010.
During the year ended December 31, 2009, there were no transfers of interests in the pool of accounts receivables to Purchasers under this arrangement.
During the third quarter of 2008 an interest in the pool of accounts receivable was transferred to a third party in exchange for $10.0 million. As of
December 31, 2009 and 2008, the Company had $10.0 million outstanding under the arrangement and had $26.0 million of remaining capacity available
under the accounts receivable securitization arrangement as of December 31, 2009.
The Company has recorded its obligation to repay the third party for its interest in the pool of receivables as long-term debt in these Consolidated
Financial Statements. The interest rates applicable to the Company's obligation are based on a fluctuating rate of interest measured based on the third party
purchaser's pooled commercial paper rate, as defined (0.21% at December 31, 2009). In addition, the Company pays usage fees on its obligations and
commitment fees on undrawn amounts committed by the Purchasers. All obligations under the accounts receivable securitization arrangement must be repaid
by July 17, 2012, the final termination date of the arrangement.
Note 17. Comprehensive Income
Comprehensive income (loss), which primarily includes net income (loss), unrealized gain (loss) on marketable securities, unrealized gain (loss) on
derivative instruments and the effect of foreign currency translation is disclosed in the Consolidated Statements of Shareholder's Equity. The following table
summarizes the activity in other comprehensive (loss) income and the related tax effects.
Successor Predecessor
Year Ended Dec. 31,
Jul. 25, 2007 to
Dec. 31, 2007
Jan. 1, 2007 to
Jul. 24, 2007
(In thousands) 2009 2008
Net unrealized gains (losses) on securities:
Unrealized gains (losses)(1) $ 2,416 $ (14,859) $ 4,390 $ 10,009
Reclassification adjustment for net losses (gains) realized(2) 2,182 9,067 246 (12,502)
Net unrealized gains (losses) on securities 4,598 (5,792) 4,636 (2,493)
Net unrealized gains (losses) on derivative instruments:
Unrealized (losses) gains(3) (24,636) (45,567) (10,614) 1,897
Reclassification adjustment for net losses realized(4) 47,380 3,062 159 837
Net unrealized gains (losses) on derivative instruments 22,744 (42,505) (10,455) 2,734
Foreign currency translation 5,038 (3,511) 1,473 1,747
Other comprehensive income (loss) $ 32,380 $ (51,808) $ (4,346) $ 1,988
Net of tax effect of $(1.4) million in 2009, $8.5 million in 2008, ($2.3) million from July 25, 2007 to December 31, 2007, and ($5.1)
million from January 1, 2007 to July 24, 2007.
(1)
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