American Home Shield 2010 Annual Report Download - page 25

Table of Contents
ServiceMaster and its operating companies own and lease a variety of facilities, principally in the United States, for branch and service center operations
and for office, storage, call center and data processing space. The following chart identifies the number of owned and leased facilities used by each of its
operating segments and Merry Maids as of December 31, 2010. ServiceMaster believes that these facilities, when considered with the corporate headquarters,
call center facility, offices, training facilities and warehouse described above, are suitable and adequate to support the current needs of its business.
Operating Company
Owned
Facilities
Leased
Facilities
TruGreen LawnCare 37 245
TruGreen LandCare 2 109
Terminix 19 434
American Home Shield 1 4
ServiceMaster Clean — 10
Merry Maids — 86
ITEM 3. LEGAL PROCEEDINGS
In the ordinary course of conducting business activities, the Company and its subsidiaries become involved in judicial, administrative and regulatory
proceedings involving both private parties and governmental authorities. These proceedings include, on an individual, collective and class action basis,
regulatory, insured and uninsured employment, general and commercial liability, wage and hour and environmental proceedings. The Company has entered
into settlement agreements in certain cases, including putative collective and class actions, which are subject to court approval. For instance, American Home
Shield Corporation was sued in a putative class action on May 26, 2009 in the U.S. District Court for the Northern District of Alabama by Abigail Rudd, et
al., and is alleged to have violated Section 8 of the Real Estate Settlement Procedures Act in connection with certain payments made to real estate agencies.
On March 4, 2011, the court granted preliminary approval of a settlement to resolve this matter, which settlement is not expected to have a material effect on
the Company's reputation, business, financial position, results of operations or cash flows. If one or more of the Company's settlements are not finally
approved, the Company could have additional or different exposure, which could be material. At this time, the Company does not expect any of these
proceedings to have a material effect on its reputation, business, financial position, results of operations or cash flows; however, the Company can give no
assurance that the results of any such proceedings may not prove to be material to its reputation, business, financial position, results of operations and cash
flows.
ITEM 4. (REMOVED AND RESERVED)
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