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, 2019
Commitments and Contingencies Disclosure [Abstract]  
ACCRUAL FOR TERMITE CONTRACTS

13.           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:

             
At December 31,   2019     2018  
(in thousands)            
Accrual for termite claims at beginning of year   $ 3,219     $ 4,885  
Current year provision     3,014       2,392  
Settlements, claims, and expenditures     (3,094 )     (4,058 )
Accrual for termite claims at end of year   $ 3,139     $ 3,219  

The accrual for termite contracts is included in other current liabilities, $2.3 million and $2.2 million at December 31, 2019 and 2018, respectively and long-term accrued liabilities, $0.8 million and $1.0 million at December 31, 2019 and 2018, respectively on the Company’s consolidated statements of financial position.