American Home Shield 2009 Annual Report Download - page 33

Table of Contents
In connection with Fast Forward, the Company incurred costs of $12.5 million and $10.8 million for the years ended December 31, 2009 and 2008,
respectively, which included the costs described above. For the year ended December 31, 2009, these charges include transition fees paid to IBM of
$7.6 million, consulting fees of $2.8 million and severance, lease termination and other costs of $2.1 million. For the year ended December 31, 2008, these
charges include transition fees paid to IBM of $0.3 million, consulting fees of $5.3 million and severance, lease termination and other costs of $5.2 million.
For the year ended December 31, 2009, TruGreen LawnCare recorded restructuring costs of $8.7 million relating to a reorganization of field leadership
and a restructuring of branch operations. These costs included consulting fees of $6.3 million, severance costs of $0.9 million and lease termination and other
costs of $1.5 million. In connection with the restructuring of branch operations, we expect to incur cash charges through the fourth quarter of 2010 related to,
among other things, employee retention, severance costs and consulting fees. Such charges are expected to amount to $10.0 million, pre-tax, and will be
recorded as restructuring charges in the Consolidated Statement of Operations.
For the year ended December 31, 2009, Terminix recorded restructuring costs of $3.4 million relating to a branch optimization project. These costs
included lease termination costs of $3.1 million and severance costs of $0.3 million.
The results for the year ended December 31, 2008 include restructuring charges related to the Company's consolidation of its corporate headquarters into
its operations support center in Memphis, Tennessee and the closing of its headquarters in Downers Grove, Illinois. The transition to Memphis was
substantially completed in 2007. Almost all costs related to the transition were cash expenditures and were expensed throughout the transition period. During
the year ended December 31, 2008, the Company incurred $0.4 million relating to this relocation, which includes severance and other costs.
The Company incurred Merger related charges of $2.3 million and $1.2 million for the years ended December 31, 2009 and 2008, respectively. These
Merger related charges include investment banking, accounting, legal fees, legal settlements, change in control severance and other costs associated with the
Merger.
Impairment of Trade Names
During the fourth quarters of 2009 and 2008, the Company recorded non-cash impairment charges of $28.0 million and $60.1 million, respectively, to
reduce the carrying value of trade names as a result of its annual impairment testing of goodwill and indefinite-lived intangible assets. See "Critical
Accounting Policies and Estimates" for further details.
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