American Home Shield 2010 Annual Report Download - page 99

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 14. Receivable Sales (Continued)
quarter of 2008, an interest in the pool of trade accounts receivable was transferred to a third party in exchange for $10.0 million. As of December 31, 2010
and 2009, the Company had $10.0 million outstanding under the arrangement and, as of December 31, 2010, had $21.5 million of remaining capacity
available under the trade accounts receivable securitization arrangement.
The accounts receivable securitization arrangement is a 364-day facility that is renewable annually at the option of Funding, with a final termination date
of July 17, 2012. Only one of the Purchasers is required to purchase interests under the arrangement. If this Purchaser were to exercise its right to terminate its
participation in the arrangement, which it may do in the third quarter of each year, the amount of cash available to the Company under this agreement may be
reduced or eliminated. As part of the annual renewal of the facility, which occurred on July 20, 2010, this Purchaser agreed to continue its participation in the
arrangement at least through July 19, 2011.
The Company has recorded its obligation to repay the third party for its interest in the pool of receivables as long-term debt in these Consolidated
Financial Statements. The interest rates applicable to the Company's obligation are based on a fluctuating rate of interest measured based on the third party
Purchaser's pooled commercial paper rate, as defined (0.32% at December 31, 2010). In addition, the Company pays usage fees on its obligations and
commitment fees on undrawn amounts committed by the Purchasers. All obligations under the accounts receivable securitization arrangement must be repaid
by July 17, 2012, the final termination date of the arrangement.
Note 15. Comprehensive Income
Comprehensive income (loss), which primarily includes net income (loss), unrealized gain (loss) on marketable securities, unrealized gain (loss) on
derivative instruments and the effect of foreign currency translation is disclosed in the Consolidated Statements of Shareholder's Equity. The following table
summarizes the activity in other comprehensive income (loss) and the related tax effects.
Year Ended Dec. 31,
(In thousands) 2010 2009 2008
Net unrealized gains (losses) on securities:
Unrealized gains (losses)(1) $ 2,808 $ 2,416 $ (14,859)
Reclassification adjustment for net (gains) losses realized(2) (1,225) 2,182 9,067
Net unrealized gains (losses) on securities 1,583 4,598 (5,792)
Net unrealized gains (losses) on derivative instruments:
Unrealized losses(3) (24,901) (24,636) (45,567)
Reclassification adjustment for net losses realized(4) 27,535 47,380 3,062
Net unrealized gains (losses) on derivative instruments 2,634 22,744 (42,505)
Foreign currency translation 2,186 5,038 (3,511)
Other comprehensive income (loss) $ 6,403 $ 32,380 $ (51,808)
Net of tax effect of $(1.3) million in 2010, $(1.4) million in 2009 and $8.5 million in 2008.(1)
95