Commitments and contingencies

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure

Commitments and contingencies

Litigation. Reference is made to the stockholder litigation relating to the Merger reported in Item 3 of Part I of the Company’s Annual Report on Form 10-K for year ended December 31, 2012. On April 5, 2013, the Company and the other defendants answered plaintiffs’ consolidated amended complaint, denying all material allegations of the complaint. On April 8, 2013, plaintiffs filed a motion for preliminary injunction, seeking to enjoin the Company’s stockholder vote to approve the Merger Agreement until the Company discloses additional information allegedly material to the stockholder vote. Following a hearing on April 16, 2013, the court denied plaintiffs’ motion, and the Merger Agreement was approved by stockholders on April 25, 2013. The Company continues to believe that the claims asserted in the action have no merit, and the Company and all of the members of the Board of Directors intend to vigorously defend against them.

From time to time, the Company is a party to other litigation, most of which arises in the ordinary course of business. The Company is not currently a party to any litigation that management believes would be likely to have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Self-Insurance Reserves. The Company is self-insured for various levels of general liability, workers’ compensation and employee health coverage. Insurance claims and reserves include accruals of estimated settlements for known claims, as well as accrued estimates of incurred but not reported claims. At March 31, 2013 and December 31, 2012, the estimated liabilities for unpaid and incurred but not reported claims totaled $8.7 million and $8.6 million, respectively. The Company considers historical loss experience and certain unusual claims in estimating these liabilities. The Company believes the use of this method to account for these liabilities provides a consistent and effective way to measure these highly judgmental accruals; however, changes in health care costs, accident or illness frequency and severity and other factors can materially affect the estimate for these liabilities.