American Home Shield 2011 Annual Report Download - page 131

Table of Contents
During the fourth quarter of 2011, the Company recorded an impairment charge of $36.7 million ($22.4 million, net of tax) to reduce
the carrying value of TruGreen's trade names as a result of the Company's annual impairment testing of goodwill and indefinite-lived
intangible assets. See Note 1 to the Consolidated Financial Statements for further information.
During the first quarter of 2011, the Company recorded an impairment charge of $34.2 million ($21.0 million, net of tax) to reduce the
carrying value of TruGreen LandCare's assets to their estimated fair value less cost to sell in accordance with applicable accounting
standards. Upon completion of the sale, a $6.2 million loss on sale ($1.9 million, net of tax) was recorded. The loss on the disposition
of the TruGreen LandCare business continues to be subject to certain post-closing adjustments and disputes, and such adjustments
could be significant to the sale price.
During the second quarter of 2010, the Company recorded a pre-tax non-cash impairment charge of $46.9 million ($28.7 million, net of
tax) to reduce the carrying value of TruGreen LandCare's goodwill and trade names as a result of the Company's annual impairment
testing of goodwill and indefinite-lived intangible assets. See Note 1 to the Consolidated Financial Statements for further information.
(2)
(3)
(4)
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Effectiveness of Disclosure Controls and Procedures. ServiceMaster's CEO, Harry J. Mullany III, and ServiceMaster's Senior Vice President and
CFO, Roger A. Cregg, have evaluated ServiceMaster's disclosure controls and procedures (as defined in Rule 15d-15(e)) as of the end of the period covered
by this Annual Report on Form 10-K. ServiceMaster's disclosure controls and procedures include a roll-up of financial and non-financial reporting that is
consolidated in the principal executive office of ServiceMaster in Memphis, Tennessee. Messrs. Mullany and Cregg have concluded that both the design and
operation of ServiceMaster's disclosure controls and procedures were effective as of December 31, 2011.
Management's Report on Internal Control over Financial Reporting. The management of the Company is responsible for establishing and
maintaining adequate internal control over financial reporting. The Company's internal control over financial reporting is designed to provide reasonable
assurance regarding the preparation and fair presentation of published financial statements.
All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can
provide only reasonable assurance with respect to financial statement preparation and presentation.
Management assessed, under the supervision and with the participation of ServiceMaster's CEO, Harry J. Mullany III, and ServiceMaster's Senior Vice
President and CFO, Roger A. Cregg, the effectiveness of the Company's internal control over financial reporting as of December 31, 2011. In making this
assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control—Integrated
Framework. Based on our assessment we believe that, as of December 31, 2011, the Company's internal control over financial reporting is effective based on
those criteria.
Although the Company is not a "large accelerated filer" or an "accelerated filer" as those terms are defined by the SEC, and therefore not required to
provide an attestation report from its independent registered public accounting firm, the Company is voluntarily providing such report.
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