American Home Shield 2011 Annual Report Download - page 95

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 5. Income Taxes (Continued)
expected to be offset by available foreign tax credits. Determination of the amount of any unrecognized deferred income tax liability on this temporary
difference is not practicable due to the complexities of the hypothetical calculation.
Note 6. Acquisitions
Acquisitions have been accounted for using the acquisition method and, accordingly, the results of operations of the acquired businesses have been
included in the Company's Consolidated Financial Statements since their dates of acquisition. The assets and liabilities of these businesses were recorded in
the financial statements at their estimated fair values as of the acquisition dates.
Current Year
During the year ended December 31, 2011, the Company completed several lawn care and pest control and termite acquisitions for a total net purchase
price of $57.1 million. Related to these acquisitions, the Company recorded goodwill of $39.5 million and other intangibles of $16.2 million.
Prior Years
During the year ended December 31, 2010 and 2009, the Company completed several lawn care and pest control and termite acquisitions, along with
several Merry Maids' franchise acquisitions, for a total net purchase price of $70.9 million and $35.7 million, respectively. Related to these acquisitions, the
Company recorded goodwill of $50.2 million and $28.8 million and other intangibles of $17.6 million and $9.1 million in 2010 and 2009, respectively.
Cash Flow Information for Acquisitions
Supplemental cash flow information regarding the Company's acquisitions, excluding the Merger, is as follows:
Year Ended December 31,
(In thousands) 2011 2010 2009
Purchase price (including liabilities assumed) $ 58,844 $ 73,142 $ 37,722
Less liabilities assumed (1,700) (2,243) (2,070)
Net purchase price $ 57,144 $ 70,899 $ 35,652
Net cash paid for acquisitions $ 44,365 $ 57,941 $ 32,647
Seller financed debt 12,779 12,958 3,005
Payment for acquisitions $ 57,144 $ 70,899 $ 35,652
Note 7. Discontinued Operations
In the first quarter of 2011, ServiceMaster concluded that TruGreen LandCare did not fit within the long-term strategic plans of the Company and
committed to a plan to sell the business. On April 21, 2011, the Company entered into a purchase agreement to sell the TruGreen LandCare business, and the
disposition was effective as of April 30, 2011. As a result of the decision to sell this business, a $34.2 million impairment charge ($21.0 million, net of tax)
was recorded in loss
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