American Home Shield 2011 Annual Report Download - page 35

Table of Contents
Presidents of Merry Maids and TruGreen and (ii) $5.5 million recorded in the year ended December 31, 2010, which include
separation charges related to the retirement of our former CEO. Also includes the reversal, in 2009, of a reserve of $4.4 million
for cash awards related to a long-term incentive plan as certain performance measures under the plan were not achieved. There
was no similar reversal in 2010 or 2011.
Consists primarily of decreased amortization of intangible assets as a result of certain finite lived intangible assets recorded in
connection with the Merger being fully amortized, offset, in part, by increased depreciation of property and equipment as a
result of property additions.
For 2011 compared to 2010, represents a decrease in interest expense as a result of decreases in our weighted average interest
rate. For 2010 compared to 2009, represents a decrease in interest expense as a result of decreases in our weighted average
interest rate and average long-term debt balances.
Represents non-cash residual value guarantee charges of $10.4 million and $5.5 million recorded in the years ended
December 31, 2010 and 2009, respectively, related to a synthetic lease for operating properties, which expired in July 2010.
There was no similar charge in the year ended December 31, 2011.
Represents the net decrease in restructuring charges related to a reorganization of field leadership and a restructuring of branch
operations at TruGreen, a branch optimization project at Terminix, information technology outsourcing and an initiative to
enhance capabilities and reduce costs in our centers of excellence at Other Operations and Headquarters, Merger related
charges and other restructuring costs.
Represents pre-tax non-cash impairment charges of $36.7 million and $26.6 million recorded in the years ended December 31,
2011 and 2009, respectively, to reduce the carrying value of trade names as a result of the Company's annual impairment
testing of goodwill and indefinite-lived intangible assets. There were no similar impairment charges included in continuing
operations in 2010. See Note 1 to the Consolidated Financial Statements for further details.
For 2011 compared to 2010, represents the loss on extinguishment of debt recorded in the year ended December 31, 2011
related to the purchase of $65.0 million in face value of the 2015 Notes from Holdings. For 2010 compared to 2009, represents
the gain on extinguishment of debt recorded in the year ended December 31, 2009 related to the completion of open market
purchases of $89.0 million in face value of the 2015 Notes. There were no open market or other purchases of 2015 Notes by the
Company in the year ended December 31, 2010.
(2)
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The Company has historically hedged a significant portion of its annual fuel consumption of approximately 21 million gallons. Fuel costs, after the
impacts of the hedges and after adjusting for the impact of year over year changes in the number of gallons used, increased $11.6 million for the year ended
December 31, 2011 compared to 2010 and decreased $18.4 million for the year ended December 31, 2010 compared to 2009. Based upon current Department
of Energy fuel price forecasts, as well as the hedges the Company has executed to date for 2012, the Company projects that fuel prices will increase our fuel
costs by $10 million to $15 million for 2012 compared to 2011.
After adjusting for the impact of year over year changes in the number of covered employees, health care and related costs increased $2.5 million for the
year ended December 31, 2011 compared to 2010 and decreased $13.0 million for the year ended December 31, 2010 compared to 2009. We expect to incur
incremental aggregate health care costs in 2012 as compared to 2011
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