Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Clint Fendley from Davenport. Please go ahead.
Clint Fendley - Davenport
Thank you. Good morning and congratulations on the quarter. Harry, a couple of questions here; first off, given the adjustment in the tax rate for the fourth quarter, how should we think about that rate looking forward into ’08 here?
Harry J. Cynkus
I would expect for the first three quarters of next year to probably see a rate right around 39%, maybe a little less, and then as we -- the states are always the wildcard in that as we go through and true that up. This year we had some favorable results but I don’t think the -- I wouldn’t count on the 38.3 being sustainable but Gary is always --
Gary W. Rollins
I’m glad you asked that question, by the way. It’s one that I ask Harry about every month.
Harry J. Cynkus
We continue to work on it but I’m hoping for tax relief in next year’s congress.
Clint Fendley - Davenport
Okay, and on the pension change from the liability to the half-secure, was there any impact on the P&L from that?
Harry J. Cynkus
No. All of that runs through other comprehensive income and retained earnings.
Clint Fendley - Davenport
Okay, and Harry, on the termite claims, do you have the actual number for the quarter?
Harry J. Cynkus
I don’t have that right handy. I’ll have to get back on that.
Clint Fendley - Davenport
Okay, that’s fine. And I guess Gary, any thoughts on why we’ve seen the negative growth across the industry here? What could be driving that?
Gary W. Rollins
I think the biggest thing is the weather. I hate to give you a weather report but probably 40% or 50% of the country had really drought conditions or severe shortages of rainfall and I think that one of the key learnings here is we always knew that moisture was important, as was evening temperatures, and I think this year was very educational because we really saw exactly how important it was. I mean, we can almost track our conventional leads by the relative rainfall variance throughout the country.
Clint Fendley - Davenport
Okay. Thank you. That’s helpful. Harry, I guess on the cash, we saw the balance come down just a little bit sequentially. Any thoughts on what drove that flux?
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