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, 2011
ACCRUAL FOR TERMITE CONTRACTS  
ACCRUAL FOR TERMITE CONTRACTS

11.   ACCRUAL FOR TERMITE CONTRACTS

In accordance with 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 for the years ended December 31, 2011 and 2010 is as follows:

 
   At December 31,  
(in thousands)
   2011
   2010
  
   

Beginning balance

   $ 8,925   $ 10,000  

Current year provision

     5,619     5,816  

Settlements, claims, and expenditures

     (4,244 )   (6,891 )
       

Ending balance

   $ 10,300   $ 8,925  
   

The accrual for termite contracts is included in other current liabilities, $3.7 million and $2.7 million at December 31, 2011 and 2010, respectively and long-term accrued liabilities, $6.6 million and $6.2 million at December 31, 2011 and 2010, respectively on the Company's consolidated statements of financial position.