Annual report pursuant to Section 13 and 15(d)

ACCRUAL FOR TERMITE CONTRACTS

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ACCRUAL FOR TERMITE CONTRACTS
 12 Months Ended
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
ACCRUAL FOR TERMITE CONTRACTS
ACCRUAL FOR TERMITE CONTRACTS
In accordance with the FASB ASC Topic 450 “Contingencies,” the Company maintains an accrual for termite claims representing the estimated costs of reapplications, repairs and associated labor and chemicals, settlements, awards and other costs relative to termite control services. Factors that may impact future cost include termiticide life expectancy and government regulation.
A reconciliation of changes in the accrual for termite contracts is as follows:
For the years ended December 31,
2017
 
2016
(in thousands)
 
 
 
Beginning balance
$
4,800

 
$
5,085

Current year provision
3,611

 
3,190

Settlements, claims, and expenditures
(3,526
)
 
(3,475
)
Ending balance
$
4,885

 
$
4,800


The accrual for termite contracts is included in other current liabilities, $2.9 million and $2.7 million at December 31, 2017 and 2016, respectively and long-term accrued liabilities, $2.0 million and $2.1 million at December 31, 2017 and 2016, respectively on the Company’s consolidated statements of financial position.