American Home Shield 2009 Annual Report Download - page 142

Table of Contents
Terminix and (iii) Fast Forward. The table below summarizes the quarterly impacts of the restructuring charges.
2009
($ in millions)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter Year
Pre-tax $ (8.5) $ (4.4) $ (7.7) $ (4.0) $ (24.6)
After-tax $ (5.2) $ (2.7) $ (5.0) $ (2.2) $ (15.1)
2008
($ in millions)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter Year
Pre-tax $ (3.3) $ (4.0) $ (1.8) $ (2.1) $ (11.2)
After-tax $ (1.9) $ (2.5) $ (1.2) $ (1.3) $ (6.9)
During the first quarter of 2009, the Company recorded a $46.1 million ($29.6 million, net of tax) gain on extinguishment of debt
related to the completion of open market purchases of $89.0 million in face value of the Company's Permanent Notes.
During the fourth quarters of 2009 and 2008, the Company recorded non-cash impairment charges associated with certain of its trade
names that are not amortized in the amount of $28.0 million ($17.3 million, net of tax) and $60.1 million ($45.7 million, net of tax),
respectively. See "Critical Accounting Policies and Estimates" for further details.
(2)
(3)
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Effectiveness of Disclosure Controls and Procedures. ServiceMaster's Chief Executive Officer, J. Patrick Spainhour, and ServiceMaster's Senior
Vice President and Chief Financial Officer, Steven J. Martin, have evaluated ServiceMaster's disclosure controls and procedures (as defined in
Rule 15d-15(e)) as of the end of the period covered by this Annual Report on Form 10-K. ServiceMaster's disclosure controls and procedures include a roll-up
of financial and non-financial reporting that is consolidated in the principal executive office of ServiceMaster in Memphis, Tennessee. Messrs. Spainhour and
Martin have concluded that both the design and operation of ServiceMaster's disclosure controls and procedures are effective.
Management's Report on Internal Control over Financial Reporting. The management of the Company is responsible for establishing and
maintaining adequate internal control over financial reporting. The Company's internal control over financial reporting is designed to provide reasonable
assurance regarding the preparation and fair presentation of published financial statements.
All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can
provide only reasonable assurance with respect to financial statement preparation and presentation.
Management assessed, under the supervision and with the participation of ServiceMaster's Chief Executive Officer, J. Patrick Spainhour, and
ServiceMaster's Senior Vice President and Chief Financial Officer, Steven J. Martin, the effectiveness of the Company's internal control over financial
reporting as of December 31, 2009. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway
Commission in Internal Control—Integrated
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