American Home Shield 2009 Annual Report Download - page 26

Table of Contents
ITEM 6. SELECTED FINANCIAL DATA
Five-Year Financial Summary
Successor Predecessor
Year Ended Dec. 31, Year Ended Dec. 31,
Jul. 25, 2007
to
Dec. 31,
2007
Jan. 1, 2007
to
Jul. 24, 2007
(In thousands, except per
share data) 2009 2008 2006 2005
Operating Results:
Operating revenue $3,240,079 $3,311,432 $1,422,358 $1,934,390 $3,332,703 $3,239,478
Operating income(1) 257,157 197,762 33,240 143,932 324,128 340,083
Percentage of
operating
revenue 7.9% 6.0% 2.3% 7.4% 9.7% 10.5%
Non-operating expense(2) 246,940 357,935 181,734 3,128 35,639 37,385
(Benefit) provision for
income taxes(1),(3) (4,390) (38,300) (52,182) 51,692 95,205 114,137
Income (Loss) from
continuing operations(1),
(2),(3) 14,607 (121,873) (96,312) 89,112 193,284 188,561
(Loss) income from
discontinued operations,
net of income taxes(1) (1,112) (4,526) (27,208) (4,588) (15,585) 18,364
Net income (loss)(1),(2),(3) $ 13,495 $ (126,399) $ (123,520) $ 84,524 $ 177,699 $ 206,925
Net income attributable to
noncontrolling interests — — — 3,423 8,000 8,000
Net income (loss)
attributable to
ServiceMaster(1),(2),(3) $ 13,495 $ (126,399) $ (123,520) $ 81,101 $ 169,699 $ 198,925
Cash dividends per share $ — $ — $ — $ 0.24 $ 0.46 $ 0.44
Financial Position:
Total assets $7,146,389 $7,493,627 $7,591,060 $3,134,441 $3,048,009
Total liabilities $5,960,058 $6,361,268 $6,287,526 $1,945,583 $1,893,369
Total long-term debt
outstanding $3,974,944 $4,266,092 $4,130,811 $ 706,954 $ 677,289
Total shareholder's
equity(1),(2),(3) $1,186,331 $1,132,359 $1,303,534 $1,188,858 $1,154,640
The 2009, 2008 and 2007 results include restructuring charges related to (i) a reorganization of field leadership and a restructuring of
branch operations at TruGreen LawnCare, (ii) a branch optimization project at Terminix, (iii) a reorganization and restructuring of
certain of the Company's business and support functions known as Fast Forward ("Fast Forward"), (iv) the Company's consolidation of
its corporate headquarters into its operations support center in Memphis, Tennessee and the closing of its former headquarters in
Downers Grove, Illinois and (v) organizational changes at TruGreen LandCare. The restructuring charges totaled $24.6 million and
$11.2 million for the years ended December 31, 2009 and 2008, respectively, $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 results also
include Merger charges related to the purchase of ServiceMaster by a group of investors led by CD&R. The Merger related charges
totaled $2.3 million and $1.2 million for the years ended December 31, 2009 and 2008, respectively, $0.8 million for the Successor
period from July 25, 2007 to December 31, 2007, $41.4 million for the Predecessor period from January 1, 2007 to July 24, 2007 and
$1.0 million for the year ended December 31, 2006.
The 2006 results include restructuring charges for severance, as well as costs associated with "Project Accelerate", the Company's
initiative to improve the effectiveness and efficiency of its functional support areas, 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. The restructuring charges totaled
$21.6 million pre-tax and $6.9 million after-tax. The after-tax impact of the restructuring charges includes approximately $6 million of
non-recurring net operating loss carry forward benefits which became realizable to the Company as a result of its decision to
consolidate its corporate headquarters in Memphis, Tennessee.
In accordance with accounting standards for goodwill and other intangibles, the Company's goodwill and intangible assets that are not
amortized are subject to at least an annual assessment for impairment by applying a fair-value based test. 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
(1)
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