American Home Shield 2011 Annual Report Download - page 38

Table of Contents
benefit resulting from a change in the state tax rates used to measure deferred taxes which more than offset state and foreign tax expense.
Restructuring Charges
The Company incurred restructuring charges of $8.2 million, $11.4 million and $26.7 million for the years ended December 31, 2011, 2010 and 2009,
respectively. Restructuring charges were comprised of the following:
Year Ended Dec. 31,
(In thousands) 2011 2010 2009
TruGreen reorganization and restructuring(1) $ 1,115 $ 6,922 $ 8,717
Information technology outsourcing(2) — — 9,861
Terminix branch optimization(3) 3,560 2,352 3,219
Centers of excellence initiative(4) 3,416 — —
Merger related charges(5) — 1,208 2,321
Other(6) 71 966 2,564
Total restructuring charges $ 8,162 $ 11,448 $ 26,682
Represents restructuring charges related to a reorganization of field leadership and a restructuring of branch operations. For the
year ended December 31, 2011 these charges included severance and lease termination costs of $0.8 million and $0.3 million,
respectively. For the years ended December 31, 2010 and 2009, these charges included consulting fees of $4.7 million and
$6.3 million, respectively and severance, lease termination and other costs of $2.2 million and $2.4 million, respectively.
On December 11, 2008, the Company entered into an agreement with International Business Machines Corporation ("IBM")
pursuant to which IBM provides information technology operations and applications development services to the Company.
These services were phased in during the first half of 2009. For the year ended December 31, 2009, these charges included
transition fees paid to IBM of $7.6 million, employee retention and severance costs of $1.3 million and consulting and other
costs of $1.0 million.
Represents restructuring charges related to a branch optimization project. For the year ended December 31, 2011, these charges
included severance and lease termination costs of $0.1 million and $3.5 million, respectively. For the year ended December 31,
2010, these charges were comprised of lease termination costs. For the year ended December 31, 2009, these charges included
lease termination costs of $2.9 million and severance costs of $0.3 million.
Represents restructuring charges related to an initiative to enhance capabilities and reduce costs in our centers of excellence.
For the year ended December 31, 2011, these charges included consulting and severance costs of $1.5 million and $1.9 million,
respectively.
Included severance, retention, legal fees and other costs associated with the Merger.
For the year ended December 31, 2011, these charges included reserve adjustments. For the year ended December 31, 2010,
these charges included reserve adjustments of $0.6 million and severance and retention of $0.4 million. For the year ended
December 31, 2009 these charges related to previous restructuring initiatives and
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