Annual report pursuant to Section 13 and 15(d)

ACCRUAL FOR TERMITE CONTRACTS

v2.4.1.9
ACCRUAL FOR TERMITE CONTRACTS
 12 Months Ended
Dec. 31, 2014
Loss Contingency [Abstract]  
ACCRUAL FOR TERMITE CONTRACTS
11. 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,   2014   2013
(in thousands)        
Beginning balance   $ 7,075     $ 8,300  
Current year provision     1,286       2,128  
Settlements, claims, and expenditures     (3,486 )     (3,353 )
Ending balance   $ 4,875     $ 7,075  

 

The accrual for termite contracts is included in other current liabilities, $1.9 million and $2.5 million at December 31, 2014 and 2013, respectively and long-term accrued liabilities, $3.0 million and $4.6 million at December 31, 2014 and 2013, respectively on the Company’s consolidated statements of financial position.