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, 2012
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, 2012 and 2011 as follows:

 
   December 31,  
(in thousands)
   2012
   2011
  
   

Beginning balance

   $ 10,300   $ 8,925  

Current year provision

     2,856     5,619  

Settlements, claims, and expenditures

     (4,856 )   (4,244 )
       

Ending balance

   $ 8,300   $ 10,300  
   

The accrual for termite contracts is included in other current liabilities, $3.3 million and $3.7 million at December 31, 2012 and 2011, respectively and long-term accrued liabilities, $5.0 million and $6.6 million at December 31, 2012 and 2011, respectively on the Company's consolidated statements of financial position.