American Home Shield 2009 Annual Report Download - page 97

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 4. Business Segment Reporting (Continued)
Successor Predecessor
Year Ended Dec. 31,
Jul. 25, 2007 to
Dec. 31, 2007
Jan. 1, 2007 to
July 24, 2007
(In thousands) 2009 2008
Total Segment Operating Income $257,157 $ 197,762 $ 33,240 $ 143,932
Non-operating expense (income):
Interest expense 299,377 347,231 177,938 31,643
Interest and net investment (income) loss (7,079) 10,052 3,563 (28,624)
Gain on extinguishment of debt (46,106) — — —
Other expense 748 652 233 109
Income (Loss) from Continuing Operations before Income
Taxes $ 10,217 $(160,173) $ (148,494) $ 140,804
As described in Note 1, includes non-cash impairment charges of $28.0 million and $60.1 million recorded in the years ended December 31, 2009 and 2008,
respectively, to reduce the carrying value of trade names as a result of the Company's annual impairment testing of goodwill and indefinite-lived intangible assets.
See Note 1 for a summary of the trade name impairment charge by segment.
Includes 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) 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. Presented below is a
summary of restructuring charges by segment:
(2)
(3)
Successor Predecessor
Year Ended Dec. 31,
Jul. 25, 2007 to
Dec. 31, 2007
Jan. 1, 2007 to
Jul. 24, 2007
(In thousands) 2009 2008
Restructuring charges:
TruGreen LawnCare $ 8,717 $ 315 $ 405 $ —
TruGreen LandCare 194 337 7,920 —
Terminix 3,390 57 76 —
American Home Shield 147 729 5,874 —
ServiceMaster Clean — 1,545 191 —
Other Operations and Headquarters 12,107 8,263 11,550 16,919
Total restructuring charges $ 24,555 $ 11,246 $ 26,016 $ 16,919
Includes 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 and
$41.4 million for the Predecessor period from January 1, 2007 to July 24, 2007. All Merger related charges are included in the Other Operations and Headquarters
segment.
Assets of discontinued operations are not included in the business segment table.
There are no adjustments necessary to reconcile total depreciation and amortization as presented in the business segment table to the consolidated totals.
Amortization of debt issue costs is not included in the business segment table.
(4)
(5)
(6)
The Other Operations and Headquarters segment includes the operations of Merry Maids, as well as the Company's headquarters function. The Merry
Maids operations reported revenue of $78.0 million and $82.5 million for the years ended December 31, 2009 and 2008, respectively, $36.9 million for the
Successor period from July 25, 2007 to December 31, 2007 and $46.1 million for the Predecessor period from January 1, 2007 to July 24, 2007. The Merry
Maids operations reported operating income (loss) of $7.0 million and ($15.2) million for the years ended December 31, 2009 and 2008, respectively,
$4.5 million for the Successor period from July 25, 2007 to December 31, 2007 and $7.9 million for the Predecessor period from January 1, 2007 to July 24,
2007.