American Home Shield 2010 Annual Report Download - page 6

Table of Contents
primarily in March through October. Weather conditions such as droughts, severe winter storms and snow fall, whether created by climate change factors or
otherwise, can adversely impact the timing of product or service delivery and/or demand for lawn care services and may result in a decrease in revenues or an
increase in costs.
TruGreen LawnCare is a leading provider of lawn, tree and shrub care services in the United States, serving both residential and commercial customers.
As of December 31, 2010, TruGreen LawnCare provided these services in 48 states and the District of Columbia through approximately 200 company-owned
locations and 45 franchised outlets. As of December 31, 2010, TruGreen LawnCare also provided lawn care services through a subsidiary in Canada and had
licensing arrangements whereby licensees provided these services in Japan, Saudi Arabia and the United Kingdom.
TruGreen LandCare Segment
The TruGreen LandCare segment provides landscape maintenance services primarily under the TruGreen LandCare brand name. The TruGreen
LandCare business is seasonal in nature. Demand for landscape maintenance services declines during the winter months. Weather conditions such as a
drought can affect the demand for landscape maintenance services, or declines in the volume of snow fall can affect the level of snow removal services, and
may result in a decrease in revenues or an increase in costs.
TruGreen LandCare is a leading provider of landscape maintenance services in the United States, serving primarily commercial customers. As of
December 31, 2010, TruGreen LandCare provided these services in 38 states and the District of Columbia through approximately 60 company-owned
locations and a national network of contractors. TruGreen LandCare has no international operations. TruGreen LandCare also operates a nursery in California.
The Company announced in November 2010 that it was exploring strategic options relating to TruGreen LandCare, including the potential sale of the
business. In the first quarter of 2011, the Company concluded that TruGreen LandCare did not fit within the long-term strategic plans of the Company and
finalized development of a plan to sell the business. The Company expects this sale to occur in 2011.
Terminix Segment
The Terminix segment provides termite and pest control services and distributes pest control products primarily under the Terminix brand name. The
Terminix business is seasonal in nature. The termite swarm season, which generally occurs in early spring but varies in timing and intensity by region
depending on climate and other factors, leads to the highest demand for termite control services and, therefore, the highest level of revenues. Similarly,
increased pest activity in the warmer months generally leads to the highest demand for pest control services and, therefore, the highest level of revenues.
Terminix is a leading provider of termite and pest control services in the United States, serving both residential and commercial customers. As of
December 31, 2010, Terminix provided these services in 46 states and the District of Columbia through approximately 310 company-owned locations and
100 franchised outlets. As of December 31, 2010, Terminix also provided termite and pest control services through three subsidiaries in Mexico and had
licensing arrangements whereby licensees provided these services in Japan, China, South Korea, Southeast Asia, Central America, the Caribbean and the
Middle East.
American Home Shield Segment
The American Home Shield segment provides home service contracts for household systems and appliances primarily under the American Home Shield
brand name. Weather conditions such
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