American Home Shield 2009 Annual Report Download - page 51

Table of Contents
2007. ServiceMaster Clean's Comparable Operating Performance also reflects reduced corporate overhead spending, offset, in part, by a $1.4 million increase
in restructuring charges.
Other Operations and Headquarters Segment
This segment includes the operations of Merry Maids, SMAC and the Company's headquarters functions. The segment reported a 1.3 percent decrease in
revenue, a 22.1 percent improvement in operating loss and a 56.3 percent increase in Comparable Operating Performance for the year ended December 31,
2008 compared to the combined periods for the year ended December 31, 2007. The Merry Maids operations reported comparable revenue for the year ended
December 31, 2008 compared to the combined periods for the year ended December 31, 2007. The segment's Comparable Operating Performance increased
$69.7 million, which includes the impacts of a $61.2 million decrease in restructuring and Merger related charges and lower functional support costs, offset, in
part, by a $1.1 million increase in management fees and a $9.5 million decrease in interest and net investment income. The Merry Maids operations reported
comparable Comparable Operating Performance for the year ended December 31, 2008 compared to the combined periods for the year ended December 31,
2007.
Discontinued Operations
See "Discontinued Operations" in the "Segment Review (Year ended December 31, 2009 compared with the year ended December 31, 2008").
Financial Position and Liquidity
As a result of the Merger, the 2007 cash flow results have been separately presented in the Consolidated Statements of Cash Flows for the Predecessor
period, covering the period January 1, 2007 to July 24, 2007 and the Successor period, covering the period July 25, 2007 to December 31, 2007.
Cash Flows from Operating Activities from Continuing Operations
Net cash provided from operating activities from continuing operations increased $30.1 million to $192.2 million for the year ended December 31, 2009
compared to $162.1 million for the year ended December 31, 2008.
Net cash provided from operating activities in 2009 was comprised of $258.1 million in earnings adjusted for non-cash charges, cash payments related to
restructuring charges, and by a $41.8 million increase in cash required for working capital. The increase in working capital requirements for the year ended
December 31, 2009 was driven primarily by reductions in accrued interest due to changes in the timing of interest payments on the Term Facilities, reductions
in reserve levels under certain of our self-insurance programs, decreased accruals for incentive compensation and a change in the timing of payments to our
vendors.
Net cash provided from operating activities in 2008 was comprised of $163.8 million in earnings adjusted for non-cash charges, cash payments related to
restructuring charges, and by an $18.3 million decrease in cash required for working capital. The decrease in working capital requirements for the year ended
December 31, 2008 was driven primarily by increases in accrued interest due to changes in the timing of interest payments on the Permanent Notes,
reductions in reserve levels for certain legal matters, decreased accruals for incentive compensation, a change in the timing of payments to our vendors and
non-cash purchase accounting adjustments recorded in connection with the Merger.
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