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.