American Home Shield 2010 Annual Report Download - page 82

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 3. Business Segment Reporting (Continued)
See Note 4 for information relating to segment goodwill.
Note 4. Goodwill and Intangible Assets
In accordance with applicable accounting standards, goodwill and intangible assets that are not amortized are subject to assessment for impairment by
applying a fair-value based test on an annual basis or more frequently if circumstances indicate a potential impairment. As described in Note 1, the 2010, 2009
and 2008 results include non-cash impairment charges of $46.9 million, $28.0 million and $60.1 million, respectively, to reduce the carrying value of
goodwill and trade names as a result of the Company's interim and annual impairment testing of goodwill and indefinite-lived intangible assets.
During the years ended December 31, 2010 and 2009, the increase in goodwill and other intangible assets relates primarily to tuck-in acquisitions
completed throughout the period by Terminix, TruGreen LawnCare and Merry Maids.
The table below summarizes the goodwill balances by segment for continuing operations:
(In thousands)
TruGreen
LawnCare
TruGreen
LandCare Terminix
American
Home
Shield
ServiceMaster
Clean
Other
Operations &
Headquarters Total
Balance at
Dec. 31,
2008 $1,161,507 $ 45,782 $1,352,799 $348,309 $ 134,956 $ 50,556 $3,093,909
Acquisitions 17,662 — 9,693 — — 1,463 28,818
Other(1) (733) (1,881) (794) (299) 757 (23) (2,973)
Balance at
Dec. 31,
2009 1,178,436 43,901 1,361,698 348,010 135,713 51,996 3,119,754
Impairment
charge — (42,984) — — — — (42,984)
Acquisitions 12,655 — 36,287 — — 1,214 50,156
Other(1) (20) (917) (571) (227) 181 (79) (1,633)
Balance at
Dec. 31,
2010 $1,191,071 $ — $1,397,414 $347,783 $ 135,894 $ 53,131 $3,125,293
Reflects the impact of the amortization of tax deductible goodwill and foreign exchange rate changes.(1)
The accumulated impairment losses as of December 31, 2010 were $43.0 million associated with our TruGreen LandCare segment. There were no
accumulated impairment losses as of December 31, 2009.
78