American Home Shield 2011 Annual Report Download - page 111

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 16. Supplemental Cash Flow Information (Continued)
when purchased. Supplemental information relating to the Consolidated Statements of Cash Flows for the years ended December 31, 2011, 2010 and 2009 is
presented in the following table:
Year Ended Dec. 31,
(In thousands) 2011 2010 2009
Cash paid for or (received from):
Interest expense $ 252,284 $ 268,693 $ 301,527
Interest and dividend income (4,888) (5,331) (6,621)
Income taxes, net of refunds 11,677 13,353 824
The Company acquired $10.1 million of property and equipment by entering into capital leases in 2011, which has been excluded from the Consolidated
Statements of Cash Flows as a non-cash investing activity. There were no similar transactions in 2009 or 2010.
Note 17. Capital Stock
Effective July 24, 2007 upon completion of the Merger, the Certificate of Incorporation of the Company was amended to provide for the authorization of
1,000 shares of common stock to replace the previously authorized, issued and outstanding common stock. As a result of the Merger, CDRSVM Holding, Inc.
holds 1,000 shares of the Company's common stock, which represents all of the authorized and issued common stock. The Company has no other classes of
capital stock, authorized or issued.
Note 18. Stock-Based Compensation
The board of directors and stockholders of Holdings have adopted the Amended and Restated ServiceMaster Global Holdings, Inc. Stock Incentive Plan
(the "MSIP"). The MSIP provides for the sale of shares and deferred share units ("DSUs") of Holdings stock to ServiceMaster's executives, officers and other
employees and to Holdings' directors as well as the grant of both restricted stock units ("RSUs") and options to purchase shares of Holdings to those
individuals. DSUs represent a right to receive a share of common stock in the future. The board of directors of Holdings, or a committee designated by it,
selects the ServiceMaster executives, officers and employees and the Holdings' directors eligible to participate in the MSIP and determines the specific
number of shares to be offered or options to be granted to an individual. A maximum of 14,595,000 shares of Holdings stock is authorized for issuance under
the MSIP. Holdings currently intends to satisfy any need for shares of common stock of Holdings associated with the settlement of DSUs, vesting of RSUs or
exercise of options issued under the MSIP through those new shares available for issuance or any shares repurchased, forfeited or surrendered from
participants in the MSIP.
All option grants under the MSIP have been, and will be, non-qualified options with a per-share exercise price no less than the fair market value of one
share of Holdings stock on the grant date. Any stock options granted will generally have a term of ten years and vesting will be subject to an employee's
continued employment. The board of directors of Holdings, or a committee designated by it, may accelerate the vesting of an option at any time. In addition,
vesting of options will be accelerated if Holdings experiences a change in control (as defined in the MSIP) unless options with substantially equivalent terms
and economic value are substituted for existing options in place of accelerated vesting. Vesting of options will also be accelerated in the event of an
employee's death or disability (as defined in the MSIP). Upon a termination for cause (as defined in the MSIP),
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