American Home Shield 2009 Annual Report Download - page 93

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 3. Purchase Accounting (Continued)
The final allocation of the purchase price is as follows:
(In millions)
Purchase consideration $ 4,896
Net assets acquired (historical basis) (1,262)
Purchase price in excess of historical assets $ 3,634
Identifiable intangible assets:
Trade names $ 2,484
Customer relationships 652
Franchise agreements 88
Backlog 68
Subcontractor and realtor network 10
Favorable lease commitments 10
Software 17
Total identifiable intangible assets 3,329
Eliminate historical basis of identifiable intangible assets (249)
Net adjustment to identifiable intangible assets 3,080
Goodwill 1,372
Current assets (deferred customer acquisition costs) (68)
Current liabilities (primarily deferred revenue) 94
Fixed assets 29
Fair value adjustment to existing debt 88
Other non-current liabilities (5)
Historical debt issuance fees written off (16)
Deferred taxes (943)
Other 3
Allocation of purchase price in excess of historical assets $ 3,634
Goodwill and most trade names are indefinite-lived intangible assets. As a result, goodwill and indefinite-lived trade names will not be amortized but
will be evaluated for impairment at least annually.
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