American Home Shield 2010 Annual Report Download - page 62

Table of Contents
our ability to generate the significant amount of cash needed to fund our operations and service our debt obligations and debt repurchases;
changes in interest rates because a significant portion of our indebtedness bears interest at variable rates;
our ability to secure sources of financing or other funding to allow for direct purchases of commercial vehicles, primarily for TruGreen
LawnCare, Terminix and TruGreen LandCare;
changes in the source and intensity of competition in our market segments;
our ability to attract and retain key personnel;
weather conditions and seasonality factors that affect the demand for, and the cost of providing, our services, including potential impacts, if any,
from climate change, known and unknown;
higher commodity prices and lack of availability thereof, including fuel and fertilizers (primarily at TruGreen LawnCare, Terminix and TruGreen
LandCare) could impact our ability to provide our services and the profitability of our brands;
increases in operating costs, such as higher insurance premiums, self-insurance costs and compensation and benefits costs, including costs related
to the comprehensive health care reform law enacted in the first quarter of 2010;
employee retention and labor shortages, including shortages due to immigration legislation;
epidemics, pandemics or other public health concerns or crises that could affect the demand for, or our ability to provide our services, resulting in
a reduction in revenues;
a continuation or change in general economic, financial and credit conditions in the United States and elsewhere (including further deterioration
or disruption in the credit and financial markets), especially as such may affect home sales, consumer or business liquidity, bank failures,
consumer or commercial confidence or spending levels including as a result of inflation or deflation, unemployment, interest rate fluctuations,
mortgage foreclosures and subprime credit dislocations;
a failure of any insurance company that provides insurance or reinsurance to us;
changes in the type or mix of our service offerings or products;
existing and future governmental regulation and the enforcement thereof, including regulation relating to the environment; restricting or banning
of telemarketing; door-to-door solicitation; direct mail or other marketing activities; the Termite Inspection Protection Plan; pesticides and/or
fertilizers; or other legislation, regulation or interpretations impacting our business models;
laws and regulations relating to financial reform and the use of derivative instruments, including by companies such as ServiceMaster;
the success of, and costs associated with, restructuring initiatives;
the number, type, outcomes (by judgment or settlement) and costs of legal or administrative proceedings, including class or collective action
litigation;
possible labor organizing activities at the Company or its franchisees;
risk of liabilities being passed through from our franchisees;
risks associated with acquisitions, including retaining customers from businesses acquired, difficulties in integrating acquired businesses and
achieving expected synergies therefrom;
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