ACCRUAL FOR TERMITE CONTRACTS

12 Months Ended

Dec. 31, 2015

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,	2015			2014
(in thousands)
Beginning balance	$	4,875		$	7,075
Current year provision		4,384			1,286
Settlements, claims, and expenditures		(4,174	)		(3,486	)
Ending balance	$	5,085		$	4,875

The accrual for termite contracts is included in other current liabilities, $2.3 million and $1.9 million at December 31, 2015 and 2014, respectively and long-term accrued liabilities, $2.8 million and $3.0 million at December 31, 2015 and 2014, respectively on the Company’s consolidated statements of financial position.