American Home Shield 2010 Annual Report Download - page 90

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 8. Restructuring and Merger Related Charges (Continued)
Represents restructuring charges related to a branch optimization project. For the year ended December 31, 2010, these
costs were comprised of lease termination costs. For the year ended December 31, 2009, these costs included lease
termination costs of $2.9 million and severance costs of $0.3 million.
Includes severance, retention, legal fees and other costs associated with the Merger.
For the years ended December 31, 2010, 2009 and 2008 these costs related to previous restructuring initiatives and
included adjustments to lease termination reserves of $0.9 million, $0.4 million and $1.8 million, respectively,
employee retention and severance costs of $0.4 million, $0.6 million and $1.5 million, respectively, and consulting and
other costs of $0.4 million, $1.8 million and $4.4 million, respectively.
(3)
(4)
(5)
The pretax charges discussed above are reported in the "Restructuring and Merger related charges" line in the Consolidated Statement of Operations.
A reconciliation of the beginning and ending balances of accrued restructuring and Merger related charges, which are included in Accrued Liabilities—
Other on the Consolidated Statement of Financial Position, is presented as follows:
(In thousands)
Accrued Restructuring
and Merger Related
Charges
Balance at December 31, 2008 $ 11,002
Costs incurred 26,876
Costs paid or otherwise settled (25,795)
Balance at December 31, 2009 12,083
Costs incurred 12,226
Costs paid or otherwise settled (19,332)
Balance at December 31, 2010 $ 4,977
Note 9. Commitments and Contingencies
The Company leases certain property and equipment under various operating lease arrangements. Most of the property leases provide that the Company
pay taxes, insurance and maintenance applicable to the leased premises. As leases for existing locations expire, the Company expects to renew the leases or
substitute another location and lease.
Rental expense for the years ended December 31, 2010, 2009 and 2008 was $115.8 million, $119.0 million and $139.1 million, respectively. Future long-
term non-cancelable operating lease payments are approximately $52.7 million in 2011, $45.4 million in 2012, $32.2 million in 2013, $22.0 million in 2014,
$14.0 million in 2015 and $30.1 million in 2016 and thereafter.
A portion of the Company's vehicle fleet and some equipment are leased through operating leases. The lease terms are non-cancelable for the first
twelve-month term, and then are month-to-month, cancelable at the Company's option. There are residual value guarantees by the Company (ranging from
70 percent to 84 percent of the estimated terminal value at the inception of the lease depending on the agreement) relative to these vehicles and equipment,
which historically have not resulted in significant net payments to the lessors. The fair value of the assets under all of
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