American Home Shield 2011 Annual Report Download - page 99

Table of Contents
Notes to the Consolidated Financial Statements (Continued)
Note 8. Restructuring Charges (Continued)
included adjustments to lease termination reserves of $0.3 million, employee retention and severance costs of $0.6 million and
consulting and other costs of $1.7 million.
The pretax charges discussed above are reported in the "Restructuring charges" line in the Consolidated Statements of Operations.
A reconciliation of the beginning and ending balances of accrued restructuring charges, which are included in Accrued Liabilities—Other on the
Consolidated Statements of Financial Position, is presented as follows:
(In thousands)
Accrued
Restructuring
Charges
Balance as of December 31, 2009 $ 7,437
Costs incurred 11,448
Costs paid or otherwise settled (15,343)
Balance as of December 31, 2010 3,542
Costs incurred 8,162
Costs paid or otherwise settled (7,814)
Balance as of December 31, 2011 $ 3,890
Note 9. Commitments and Contingencies
The Company leases certain property and equipment under various operating lease arrangements. Most of the property leases provide that the
Company pay taxes, insurance and maintenance applicable to the leased premises. As leases for existing locations expire, the Company expects to renew
the leases or substitute another location and lease.
Rental expense for the years ended December 31, 2011, 2010 and 2009 was $76.7 million, $104.7 million and $106.9 million, respectively. Based
on leases in place as of December 31, 2011, future long-term non-cancelable operating lease payments will be approximately $42.6 million in 2012,
$33.0 million in 2013, $23.0 million in 2014, $14.5 million in 2015, $9.9 million in 2016 and $20.8 million in 2017 and thereafter.
A portion of the Company's vehicle fleet and some equipment are leased through month-to-month operating leases, cancelable at the Company's
option. There are residual value guarantees by the Company (ranging from 70 percent to 84 percent of the estimated terminal value at the inception of
the lease depending on the agreement) relative to these vehicles and equipment, which historically have not resulted in significant net payments to the
lessors. The fair value of the assets under all of the fleet and equipment leases is expected to substantially mitigate the Company's guarantee obligations
under the agreements. As of December 31, 2011, the Company's residual value guarantees related to the leased assets totaled $32.2 million for which the
Company has recorded as a liability the estimated fair value of these guarantees of $0.7 million in the Consolidated Statements of Financial Position.
Certain of the Company's assets, including a call center facility and equipment, are leased under capital leases with $12.2 million in remaining
lease obligations as of December 31, 2011. Based on leases in place as of December 31, 2011, future lease payments under capital leases will
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