Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 16, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | ROLLINS INC | |
Entity Central Index Key | 84,839 | |
Trading Symbol | rol | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 218,187,939 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 84,319 | $ 107,050 |
Trade receivables, net of allowance for doubtful accounts of $10,536 and $11,814, respectively | 96,459 | 97,802 |
Financed receivables, short-term, net of allowance for doubtful accounts of $1,581 and $1,535, respectively | 16,979 | 17,263 |
Materials and supplies | 15,885 | 14,983 |
Other current assets | 27,062 | 25,697 |
Total current assets | 240,704 | 262,795 |
Equipment and property, net | 136,272 | 134,088 |
Goodwill | 364,606 | 346,514 |
Finite-lived intangible assets, net | 238,083 | |
Other intangible assets | 11,438 | 11,550 |
Financed receivables, long-term, net of allowance for doubtful accounts of $1,406 and $1,357, respectively | 22,305 | 20,414 |
Prepaid Pension | 18,237 | 17,595 |
Deferred income taxes | 10,428 | 18,420 |
Other assets | 20,061 | 19,420 |
Total assets | 1,050,696 | 1,033,663 |
LIABILITIES | ||
Accounts payable | 30,624 | 26,161 |
Accrued insurance | 28,462 | 28,018 |
Accrued compensation and related liabilities | 64,610 | 73,016 |
Unearned revenues | 117,934 | 109,029 |
Other current liabilities | 57,443 | 58,345 |
Total current liabilities | 299,073 | 294,569 |
Accrued insurance, less current portion | 34,787 | 34,245 |
Long-term accrued liabilities | 54,073 | 50,925 |
Total liabilities | 387,933 | 379,739 |
Commitments and Contingencies | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, without par value; 500,000 shares authorized, zero shares issued | ||
Common stock, par value $1 per share; 375,000,000 shares authorized, 218,186,439 and 217,992,177 shares issued and outstanding, respectively | 218,186 | 217,992 |
Paid in capital | 75,079 | 81,405 |
Accumulated other comprehensive loss | (48,908) | (45,956) |
Retained earnings | 418,406 | 400,483 |
Total stockholders’ equity | 662,763 | 653,924 |
Total liabilities and stockholders’ equity | 1,050,696 | 1,033,663 |
Customer contracts | ||
ASSETS | ||
Finite-lived intangible assets, net | 176,447 | 152,869 |
Trademarks and tradenames | ||
ASSETS | ||
Finite-lived intangible assets, net | $ 50,198 | $ 49,998 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Trade receivables, short-term, allowance for doubtful accounts | $ 10,536 | $ 11,814 |
Financed receivables, short-term, allowance for doubtful accounts | 1,581 | 1,535 |
Financed receivables, long-term, allowance for doubtful accounts | $ 1,406 | $ 1,357 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 375,000,000 | 375,000,000 |
Common stock, issued (in shares) | 218,186,439 | 217,992,177 |
Common stock, outstanding (in shares) | 218,186,439 | 217,992,177 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUES | ||
Customer services | $ 408,742 | $ 375,247 |
COSTS AND EXPENSES | ||
Cost of services provided | 206,143 | 189,163 |
Depreciation and amortization | 16,916 | 13,771 |
Sales, general and administrative | 126,487 | 115,154 |
Gain on sale of assets, net | (56) | (26) |
Interest expense / (income), net | 58 | (73) |
INCOME BEFORE INCOME TAXES | 59,194 | 57,258 |
PROVISION FOR INCOME TAXES | 10,669 | 16,988 |
NET INCOME | $ 48,525 | $ 40,270 |
NET INCOME PER SHARE - BASIC AND DILUTED (in dollars per share) | $ 0.22 | $ 0.18 |
DIVIDENDS PAID PER SHARE (in dollars per share) | $ 0.14 | $ 0.115 |
Weighted average participating shares outstanding - basic and diluted (in share) | 218,163 | 217,971 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 48,525 | $ 40,270 |
Other comprehensive earnings (loss), net of tax | ||
Foreign currency translation adjustments | (2,952) | 4,007 |
Other comprehensive earnings (loss) | (2,952) | 4,007 |
Comprehensive earnings | $ 45,573 | $ 44,277 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Paid-In-Capital | Accumulated Other Comprehensive Income / (Loss) | Retained Earnings |
Balance (in shares) at Dec. 31, 2016 | 217,792,000 | ||||
Balance at Dec. 31, 2016 | $ 568,545 | $ 217,792 | $ 77,452 | $ (70,075) | $ 343,376 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 179,124 | 179,124 | |||
Other Comprehensive Income, Net of Tax | |||||
Pension Liability Adjustment | 14,159 | 14,159 | |||
Foreign Currency Translation Adjustments | 9,960 | 9,960 | |||
Cash Dividends | (122,017) | (122,017) | |||
Stock Compensation (in shares) | 434,000 | ||||
Stock Compensation | 12,399 | $ 434 | 11,965 | ||
Employee Stock Buybacks (in shares) | (234,000) | ||||
Employee Stock Buybacks | (8,246) | $ (234) | (8,012) | ||
Balance (in shares) at Dec. 31, 2017 | 217,992,000 | ||||
Balance at Dec. 31, 2017 | 653,924 | $ 217,992 | 81,405 | (45,956) | 400,483 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 48,525 | 48,525 | |||
Other Comprehensive Income, Net of Tax | |||||
Foreign Currency Translation Adjustments | (2,952) | (2,952) | |||
Cash Dividends | (30,602) | (30,602) | |||
Stock Compensation (in shares) | 377,000 | ||||
Stock Compensation | 3,093 | $ 377 | 2,716 | ||
Employee Stock Buybacks (in shares) | (183,000) | ||||
Employee Stock Buybacks | (9,225) | $ (183) | (9,042) | ||
Balance (in shares) at Mar. 31, 2018 | 218,186,000 | ||||
Balance at Mar. 31, 2018 | $ 662,763 | $ 218,186 | $ 75,079 | $ (48,908) | $ 418,406 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OPERATING ACTIVITIES | ||
Net Income | $ 48,525 | $ 40,270 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 16,916 | 13,771 |
Provision for deferred income taxes | 4,101 | 5,462 |
Provision for bad debts | 932 | 61 |
Stock - based compensation expense | 3,093 | 3,267 |
Other, net | (1,195) | (130) |
Changes in operating assets and liabilities | 376 | (5,930) |
Net cash provided by operating activities | 72,748 | 56,771 |
INVESTING ACTIVITIES | ||
Cash used for acquisitions of companies, net of cash acquired | (43,154) | (3,020) |
Purchases of equipment and property | (6,134) | (5,454) |
Proceeds from sales of franchises | 177 | 168 |
Other | 76 | 61 |
Net cash used in investing activities | (49,035) | (8,245) |
FINANCING ACTIVITIES | ||
Cash paid for common stock purchased | (9,225) | (7,480) |
Dividends paid | (30,602) | (25,058) |
Net cash used in financing activities | (39,827) | (32,538) |
Effect of exchange rate changes on cash | (6,617) | 3,705 |
Net increase/(decrease) in cash and cash equivalents | (22,731) | 19,693 |
Cash and cash equivalents at beginning of period | 107,050 | 142,785 |
Cash and cash equivalents at end of period | $ 84,319 | $ 162,478 |
BASIS OF PREPARATION AND OTHER
BASIS OF PREPARATION AND OTHER | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation and Other | BASIS OF PREPARATION AND OTHER Basis of Preparation -The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. There has been no material change in the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Rollins, Inc. (the “Company”) for the year ended December 31, 2017 other than updates related to Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) as noted below. Accordingly, the quarterly condensed consolidated financial statements and related disclosures herein should be read in conjunction with the 2017 Annual Report on Form 10-K. The preparation of interim financial statements requires management to make estimates and assumptions for the amounts reported in the condensed consolidated financial statements. Specifically, the Company makes estimates in its interim condensed consolidated financial statements for the termite accrual which includes future costs including termiticide life expectancy and government regulations, the insurance accrual which includes self-insurance and worker’s compensation, inventory adjustments, discounts and volume incentives earned, among others. In the opinion of management, all adjustments necessary for a fair presentation of the Company’s financial results for the interim periods have been made. These adjustments are of a normal recurring nature. The results of operations for the three month period ended March 31, 2018 are not necessarily indicative of results for the entire year. The Company has only one reportable segment, its pest and termite control business. The Company’s results of operations and its financial condition are not reliant upon any single customer, or a few customers, or the Company’s foreign operations. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Revenue Service Revenue and Other Revenue Rollins’ revenues are sourced primarily from the sale of pest control and other protection services to residential and commercial consumers. Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, each of which are distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Nature of Goods and Services and Performance Obligations The Company contracts with its customers to provide the following goods and services, each of which is a distinct performance obligation: Pest control services - Rollins provides pest control services to protect residential and commercial properties from common pests, including rodents and insects. Pest control generally consists of assessing a customer’s property for conditions that invite pests, tackling current infestations, and stopping the life cycle to prevent future invaders. Revenue from pest control services is recognized as services are rendered. The Company’s revenue recognition policies are designed to recognize revenues upon transfer of control at the time services are performed. For certain revenue types, because of the timing of billing and the receipt of cash versus the timing of performing services, certain accounting estimates are utilized. Residential and commercial pest control services are primarily recurring in nature on a monthly, bi-monthly or quarterly basis, while certain types of commercial customers may receive multiple treatments within a given month. In general, pest control customers sign an initial one -year contract, and revenues are recognized at the time services are performed. The Company defers recognition of advance payments and recognizes the revenue as the services are rendered. The Company classifies discounts related to the advance payments as a reduction in revenues. Termite control services (including traditional and baiting) - Rollins provides both conventional and baiting termite protection services. Traditional termite protection uses “Termidor” liquid treatment and/or dry foam and Orkin foam to treat voids and spaces around the property, while baiting termite protection uses baits to disrupt the molting process termites require for growth and offers ongoing protection. Revenue from initial termite treatment services is recognized as services are provided. Maintenance/monitoring/inspection - In connection with the initial service offerings, Rollins provides recurring maintenance, monitoring or inspection services to help protect consumer’s property for any future sign of termite activities after the original treatment. This recurring service is a service-type warranty under ASC 606 as it is routinely sold and purchased separately from the initial treatment services and is typically purchased or renewed annually. Termite baiting revenues are recognized based on the transfer of control of the individual units of accounting. At the inception of a new baiting services contract, upon quality control review of the installation, the Company recognizes revenue for the installation of the monitoring stations, initial directed liquid termiticide treatment and servicing of the monitoring stations. A portion of the contract amount is deferred for the undelivered monitoring element. This portion is recognized as income on a straight-line basis over the remaining contract term, which results in recognition of revenue that depicts the Company's performance in transferring control of the service. The allocation of the purchase price to the two deliverables is based on the relative stand-alone selling price. There are no contingencies related to the delivery of additional items or meeting other specified performance conditions. Baiting renewal revenue is deferred and recognized over the annual contract period on a straight-line basis that depicts the Company's performance in transferring control of the service. Revenue received for conventional termite renewals is deferred and recognized on a straight-line basis over the remaining contract term that depicts the Company's performance in transferring control of the service; and, the cost of reinspections, reapplications and repairs and associated labor and chemicals are expensed as incurred. For outstanding claims, an estimate is made of the costs to be incurred (including legal costs) based upon current factors and historical information. The performance of reinspections tends to be close to the contract renewal date and while reapplications and repairs involve an insubstantial number of the contracts, these costs are incurred over the contract term. As the revenue is being deferred, the future cost of reinspections, reapplications and repairs and associated labor and chemicals applicable to the deferred revenue are expensed as incurred. The Company accrues for noticed claims. The costs of providing termite services upon renewal are compared to the expected revenue to be received and a provision is made for any expected losses. Miscellaneous services (e.g., cleaning, etc.) - In certain agreements with customers, Rollins may offer other miscellaneous services, including restroom cleaning (e.g., eliminating foul odors, grease and grime which could attract pests), training (e.g., seminar covering Good Manufacturing Practices and product stewardship), etc. Revenue from miscellaneous services is recognized when services are provided. Products - Depending on customer demand, Rollins may separately sell pest control and/or termite protection products, such as baits. Revenue from product sales is recognized upon transfer of control of the asset. Equipment rental (or lease) - Depending on customer demand, Rollins may lease certain pest control and/or termite protection equipment. Revenue from equipment rentals are recognized over the period of the rental/lease. Revenue from equipment rentals are not material and represent less than 1.0% of the Company's revenues for each reported period. Right to access intellectual property (Franchise) - The right to access Rollins’ intellectual property is an essential part of Orkin’s franchising agreements. These agreements provide the franchisee (the customer) a license to use the Rollins’ name and trademark when advertising and selling services to end customers in their normal course of business. Orkin Franchise agreements contain a clause allowing Orkin to purchase certain assets of the franchisee. This is only an offer for Orkin to re-purchase the assets originally provided by Orkin to the franchisee and is not a performance obligation or a form of consideration. International and domestic franchising revenue was less than 0.5% of the Company’s annual revenues. All Orkin domestic franchises have a guaranteed repurchase clause that the Orkin franchise may be repurchased by Orkin at a later date once it has been established. Deferred Orkin franchise fees of $3.4 million at both March 31, 2018 and December 31, 2017 were not material to the Company's financial statements. Royalties from Orkin franchises are accrued and recognized as revenues are earned on a monthly basis. Revenue from franchises was $2.4 million for each of the three month periods ended March 31, 2018 and 2017, respectively. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized subsequent to invoicing. For multi-year agreements, we generally invoice customers annually at the beginning of each annual coverage period. The balance of long-term accounts receivable, net of allowance for doubtful accounts, was $22.3 million as of March 31, 2018. As of December 31, 2017, long-term accounts receivable, net of allowance for doubtful accounts, were $20.4 million and are included in financed receivables as a long-term asset on our consolidated statements of financial position. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. Activity in the allowance for doubtful accounts was as follows: (In thousands) Three Months ended March 31, 2018 Balance at December 31, 2017 $ 14,706 Charged to costs and expenses 932 Net (deductions) recoveries (2,115 ) Balance at March 31, 2018 $ 13,523 Unearned revenue is comprised mainly of unearned revenue related to the Company’s termite baiting offering and year-in-advance pest control services for which we have been paid in advance and earn the revenue when we transfer control of the product or service. Refer to Note 7 - Unearned Revenue for further information, including changes in unearned revenue during the period. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Recently issued accounting standards to be adopted in 2018 or later In June of 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The updated accounting guidance requires changes to the recognition of credit losses on financial instruments not accounted for at fair value through net income. The guidance is effective for interim and annual periods beginning after December 15, 2019. The Company is currently evaluating the effect the guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), which provides additional implementation guidance on the previously issued ASU 2016-02 Leases (Topic 842). ASU 2016-02 requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. Based on a preliminary assessment, the Company expects the adoption of this guidance to have a material impact on its assets and liabilities due to the recognition of right-of-use assets and lease liabilities on its consolidated balance sheets at the beginning of the earliest period presented. The Company is continuing its assessment, which may identify additional impacts this guidance will have on its consolidated financial statements and disclosures. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), which provides new guidance intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. This ASU is effective for the Company beginning in fiscal year 2020. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Adoption of ASC Topic 606, "Revenue from Contracts with Customers" On January 1, 2018, and the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2017. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. There was no impact on the Company’s financial statements as a result of adopting Topic 606 for the three months ended March 31, 2018 and 2017, or the twelve months ended December 31, 2017. The following tables present our revenues disaggregated by revenue source (in thousands, unaudited). Sales and usage-based taxes are excluded from revenues. No sales to an individual customer or country other than the United States accounted for more than 10% of the three months ended March 31, 2018 and 2017, respectively. Revenue, classified by the major geographic areas in which our customers are located, was as follows: (in thousands) Three Months Ended March 31, 2018 2017 United States $ 375,959 $ 345,580 Other countries 32,783 29,667 Total Revenues $ 408,742 $ 375,247 Revenue from external customers, classified by significant product and service offerings, was as follows: (in thousands) Three Months Ended March 31, 2018 2017 Residential contract revenue $ 144,197 $ 132,344 Commercial contract revenue 132,079 124,833 Termite completions, bait monitoring, & renewals 76,491 65,652 Other revenues 55,975 52,418 Total Revenues $ 408,742 $ 375,247 UNEARNED REVENUE Changes in unearned revenue were as follows: (In thousands) Three Months ended March 31, 2018 Balance at December 31, 2017 $ 117,614 Deferral of unearned revenue 47,725 Recognition of unearned revenue (38,809 ) Balance at March 31, 2018 126,530 Year ended December 31, 2017 Balance at December 31, 2016 $ 106,323 Deferral of unearned revenue 140,019 Recognition of unearned revenue (128,728 ) Balance at December 31, 2017 117,614 Deferred revenue recognized in the three month period ended March 31, 2018 and March 31, 2017 were $38.8 million and $32.6 million , respectively. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”), which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. The Company has no material contracted not recognized revenue as of March 31, 2018 or December 31, 2017. At March 31, 2018 and December 31, 2017, the Company had long-term unearned revenue of $8.6 million . Unearned short-term revenue is recognized over the next 12 month period. The majority of unearned long-term revenue is recognized over a period of five years or less with immaterial amounts recognized through 2025. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company follows ASC 260, Earnings Per Share (ASC 260) that requires the reporting of both basic and diluted earnings per share. Basic earnings per share is computed by dividing net income available to participating common stockholders by the weighted average number of participating common shares outstanding for the period. Basic and diluted earnings per share attributable to common and restricted shares of common stock for the period were as follows: Three Months Ended 2018 2017 Basic and diluted earnings per share Common stock $ 0.22 $ 0.18 Restricted shares of common stock $ 0.22 $ 0.18 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIES In the normal course of business, certain of the Company’s subsidiaries are defendants in a number of lawsuits, claims or arbitrations which allege that the subsidiaries’ services caused damage. In addition, the Company defends employment related cases and claims from time to time. We are involved in certain environmental matters primarily arising in the normal course of business. We are actively contesting each of these matters. Management does not believe that any pending claim, proceeding or litigation, either alone or in the aggregate will have a material adverse effect on the Company’s financial position, results of operations or liquidity; however, it is possible that an unfavorable outcome of some or all of the matters, however unlikely, could result in a charge that might be material to the results of an individual quarter or year. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments consist of cash and cash equivalents, trade receivables, notes receivable, accounts payable and other short-term liabilities. The carrying amounts of these financial instruments approximate their fair values. The Company has a Revolving Credit Agreement with SunTrust Bank and Bank of America, N.A. for an unsecured line of credit of up to $175.0 million , which includes a $75.0 million letter of credit subfacility and a $25.0 million swingline subfacility. There were no outstanding borrowings at March 31, 2018 and December 31, 2017 . |
UNEARNED REVENUE
UNEARNED REVENUE | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Unearned Revenue | REVENUE Adoption of ASC Topic 606, "Revenue from Contracts with Customers" On January 1, 2018, and the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2017. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. There was no impact on the Company’s financial statements as a result of adopting Topic 606 for the three months ended March 31, 2018 and 2017, or the twelve months ended December 31, 2017. The following tables present our revenues disaggregated by revenue source (in thousands, unaudited). Sales and usage-based taxes are excluded from revenues. No sales to an individual customer or country other than the United States accounted for more than 10% of the three months ended March 31, 2018 and 2017, respectively. Revenue, classified by the major geographic areas in which our customers are located, was as follows: (in thousands) Three Months Ended March 31, 2018 2017 United States $ 375,959 $ 345,580 Other countries 32,783 29,667 Total Revenues $ 408,742 $ 375,247 Revenue from external customers, classified by significant product and service offerings, was as follows: (in thousands) Three Months Ended March 31, 2018 2017 Residential contract revenue $ 144,197 $ 132,344 Commercial contract revenue 132,079 124,833 Termite completions, bait monitoring, & renewals 76,491 65,652 Other revenues 55,975 52,418 Total Revenues $ 408,742 $ 375,247 UNEARNED REVENUE Changes in unearned revenue were as follows: (In thousands) Three Months ended March 31, 2018 Balance at December 31, 2017 $ 117,614 Deferral of unearned revenue 47,725 Recognition of unearned revenue (38,809 ) Balance at March 31, 2018 126,530 Year ended December 31, 2017 Balance at December 31, 2016 $ 106,323 Deferral of unearned revenue 140,019 Recognition of unearned revenue (128,728 ) Balance at December 31, 2017 117,614 Deferred revenue recognized in the three month period ended March 31, 2018 and March 31, 2017 were $38.8 million and $32.6 million , respectively. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”), which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. The Company has no material contracted not recognized revenue as of March 31, 2018 or December 31, 2017. At March 31, 2018 and December 31, 2017, the Company had long-term unearned revenue of $8.6 million . Unearned short-term revenue is recognized over the next 12 month period. The majority of unearned long-term revenue is recognized over a period of five years or less with immaterial amounts recognized through 2025. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY During the three months ended March 31, 2018 , the Company paid $30.6 million or $0.14 per share in cash dividends compared to $25.1 million or $0.115 per share during the same period in 2017 . During the first quarter ended March 31, 2018 and during the same period in 2017 the Company did no t repurchase shares on the open market. The Company also repurchases shares from employees for the payment of taxes on vesting restricted shares. The Company repurchased $9.2 million and $7.5 million of common stock for the quarter ended March 31, 2018 and 2017 , respectively, from employees for the payment of taxes on vesting restricted shares. As more fully discussed in Note 15 of the Company’s notes to the consolidated financial statements in its 2017 Annual Report on Form 10-K, stock options, time lapse restricted shares and restricted stock units have been issued to officers and other management employees under the Company’s Employee Stock Incentive Plans. The Company issues new shares from its authorized but unissued share pool. At March 31, 2018 , approximately 3.9 million shares of the Company’s common stock were reserved for issuance. Time Lapse Restricted Shares and Restricted Stock Units The following table summarizes the components of the Company’s stock-based compensation programs recorded as expense: Three Months Ended (in thousands) 2018 2017 Time lapse restricted stock: Pre-tax compensation expense $ 3,093 $ 3,267 Tax benefit (786 ) (1,264 ) Restricted stock expense, net of tax $ 2,307 $ 2,003 The following table summarizes information on unvested restricted stock outstanding as of March 31, 2018 : Number of Shares Average Grant- Date Fair Value Unvested Restricted Stock at December 31, 2017 2,017 $ 24.50 Forfeited (5 ) 18.68 Vested (586 ) 19.69 Granted 384 47.88 Unvested Restricted Stock at March 31, 2018 1,810 $ 31.00 At March 31, 2018 and December 31, 2017 , the Company had $48.1 million and $32.9 million of total unrecognized compensation cost, respectively, related to time-lapse restricted shares that are expected to be recognized over a weighted average period of approximately 4.5 years and 3.9 years, respectively. |
PENSION AND POST RETIREMENT BEN
PENSION AND POST RETIREMENT BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Post Retirement Benefit Plans | PENSION AND POST RETIREMENT BENEFIT PLANS The following table represents the net periodic pension benefit costs and related components in accordance with FASB ASC 715 “ Compensation Retirement Benefits”: Components of Net Pension Benefit Gain Three Months Ended (in thousands) 2018 2017 Interest and service cost $ 1,995 $ 2,138 Expected return on plan assets (3,443 ) (3,342 ) Amortization of net loss 826 830 Net periodic benefit $ (622 ) $ (374 ) During the three months ended March 31, 2018 and the same period 2017 the Company made no contributions to its defined benefit retirement plans (the “Plans”). The Company made no contributions for the year ended December 31, 2017 . The Company is adequately funded on its Pension Plans and is not expecting to make further contributions in 2018. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS The Company made 16 acquisitions during the three month period ended March 31, 2018 , and 23 acquisitions for the year ended December 31, 2017 , respectively, some of which have been disclosed on various press releases and related Current Reports on Form 8-K. On August 1, 2017, the Company completed the acquisition of Northwest Exterminating Co., Inc. Northwest has 23 offices in 5 southeastern states and was the nation’s 17th largest pest management company. Northwest performs services for approximately 120,000 customers and will continue to operate as a separate business, as one of Rollins’ Specialty Brands, along with HomeTeam Pest Defense, Western Pest Services and Waltham Pest Services. On February 28, 2018, the Company announced that it has purchased the stock of AMES Group Limited and Kestrel Pest Control Limited, both companies operating in the UK. AMES Group Limited is a long established pest control company, with a rich history of providing superior pest control, bird control, and specialist services to commercial customers throughout the midlands and including London. Kestrel Pest Control provides superior commercial pest control to customers in South Hampton and surrounding areas of the Southwest. Kestrel Pest Control will merge with our Safeguard UK brand. On March 1, 2018, the Company announced that it had completed its acquisition of OPC Services. OPC Services will continue to operate as a separate business, and one of Rollins' Specialty Brands, along with HomeTeam Pest Defense, Northwest Exterminating, Western Pest Services and Waltham Pest Services. The preliminary values of major classes of assets acquired and liabilities assumed recorded at the date of acquisition, as adjusted during the valuation period, are included in the reconciliation of the total consideration as follows (in thousands): March 31, 2018 Accounts Receivable $ 1,536 Current Assets 273 Equipment and property 3,591 Goodwill 33,613 Customer Contracts and other intangible assets 18,225 Current liabilities (9,310 ) Long-term liabilities (490 ) Total consideration paid $ 47,438 Less: Contingent consideration liability (4,284 ) Total cash purchase price $ 43,154 Goodwill from acquisitions represents the excess of the purchase price over the fair value of net assets of businesses acquired. The carrying amount of goodwill was $364.6 million and $346.5 million at March 31, 2018 and December 31, 2017 , respectively. Goodwill generally changes due to the timing of acquisitions, finalization of allocation of purchase prices of previous acquisitions and foreign currency translations. The carrying amount of goodwill in foreign countries was $46.5 million at March 31, 2018 and $46.3 million at December 31, 2017 . The Company completed its most recent annual impairment analysis as of September 30, 2017. Based upon the results of these analyses, the Company has concluded that no impairment of its goodwill or other intangible assets was indicated. The carrying amount of customer contracts was $176.4 million and $152.9 million at March 31, 2018 and December 31, 2017 , respectively. The carrying amount of trademarks and tradenames was $50.2 million and $50.0 million at March 31, 2018 and December 31, 2017, respectively. The carrying amount of other intangible assets was $11.4 million and $11.6 million at March 31, 2018 and December 31, 2017 , respectively. The carrying amount of customer contracts in foreign countries was $33.0 million and $29.8 million at March 31, 2018 and December 31, 2017 , respectively. The carrying amount of trademarks and tradenames in foreign countries was $1.7 million at March 31, 2018 and December 31, 2017, respectively. The carrying amount of other intangible assets in foreign countries was $1.6 million and $1.7 million at March 31, 2018 and December 31, 2017 , respectively. Customer contracts and other amortizable intangible assets are amortized on a straight-line basis over their economic useful lives. The following table sets forth the components of intangible assets as of March 31, 2018 (in thousands): Intangible Asset Carrying Value Useful Life in Years Customer contracts $ 176,447 3 - 12 Trademarks and tradenames 50,198 0 - 20 Non-compete agreements 4,054 3 - 20 Patents 2,405 3 - 15 Other assets 2,752 10 Internet domains 2,227 n/a Total customer contracts and other intangible assets $ 238,083 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. To manage this risk, the Company enters into derivative financial instruments from time to time. Certain of the Company’s foreign operations expose the Company to fluctuations of foreign interest rates and exchange rates. These fluctuations may impact the value of the Company’s cash receipts and payments in terms of the Company’s functional currency. The Company enters into derivative financial instruments from time to time to protect the value or fix the amount of certain obligations in terms of its functional currency, the U.S. dollar. Hedges of Foreign Exchange Risk The Company is exposed to fluctuations in various foreign currencies against its functional currency, the U.S. dollar. The Company uses foreign currency derivatives, specifically vanilla foreign currency forwards, to manage its exposure to fluctuations in the USD-CAD and AUD-USD exchange rates. Currency forward agreements involve fixing the foreign currency exchange rate for delivery of a specified amount of foreign currency on a specified date. The currency forward agreements are typically cash settled in U.S. dollars for their fair value at or close to their settlement date. The Company does not currently designate any of these foreign exchange forwards under hedge accounting, but rather reflects the changes in fair value immediately in earnings. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to foreign exchange rates. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and were equal to a gain of $147,000 for the quarter ended March 31, 2018 and a gain of $30,000 for the same quarter in the prior year. As of March 31, 2018 , the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (in thousands except for number of instruments): Non-Designated Derivative Summary Number of Instruments Sell Notional Buy Notional FX Forward Contracts Sell AUD/Buy USD Fwd Contract 3 $ 550 $ 425 Sell CAD/Buy USD Fwd Contract 6 $ 4,800 $ 3,808 Total 9 $ — $ 4,233 The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of March 31, 2018 and December 31, 2017 (in thousands): Tabular Disclosure of Fair Values of Derivative Instruments Derivatives Asset Derivative Liabilities Fair Value as of: March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 Derivatives Not Designated as Hedging Instruments FX Forward Contracts Balance Sheet Location Other Assets Other Assets Other Current Liabilities Other Current Liabilities Sell AUD/Buy USD Fwd Contract $ 2 $ — $ — $ (9 ) Sell CAD/Buy USD Fwd Contract $ 73 $ — $ — $ (61 ) Total $ 75 $ — $ — $ (70 ) The table below presents the effect of the Company’s derivative financial instruments on the Income Statement as of March 31, 2018 and March 31, 2017 (in thousands): Effect of Derivative Instruments on the Income Statement for Derivatives Not Designated as Hedging Instruments for the Three Months Ended March 31, 2018 and 2017 Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income Amount of Gain or 2018 2017 Sell AUD/Buy USD Fwd Contract Other Inc/(Exp) $ 11 $ (8 ) Sell CAD/Buy USD Fwd Contract Other Inc/(Exp) 136 38 Total $ 147 $ 30 The table below presents the total fair value classification within the fair value hierarchy for the complete portfolio of derivative transactions at March 31, 2018 (in thousands): Recurring Fair Value Measurements Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Fair Value at 2018 2017 2018 2017 2018 2017 2018 2017 Assets Derivative Financial Instruments $ — $ — $ 75 $ 36 $ — $ — $ 75 $ 36 Liabilities Derivative Financial Instruments $ — $ — $ — $ (21 ) $ — $ — $ — $ (21 ) As of March 31, 2018 , the fair value of derivatives in a net asset position was $75,000 inclusive of counterparty credit risk. As of the balance sheet date, the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions at March 31, 2018 , it could have been required to settle its obligations under the agreements at their termination value of $75,000 . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On April 24, 2018, the Company announced that the Board of Directors declared a regular quarterly cash dividend on its common stock of $0.14 per share payable June 11, 2018 to stockholders of record at the close of business May 10, 2018. |
RECENT ACCOUNTING PRONOUNCEME20
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Revenue | Revenue Service Revenue and Other Revenue Rollins’ revenues are sourced primarily from the sale of pest control and other protection services to residential and commercial consumers. Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, each of which are distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Nature of Goods and Services and Performance Obligations The Company contracts with its customers to provide the following goods and services, each of which is a distinct performance obligation: Pest control services - Rollins provides pest control services to protect residential and commercial properties from common pests, including rodents and insects. Pest control generally consists of assessing a customer’s property for conditions that invite pests, tackling current infestations, and stopping the life cycle to prevent future invaders. Revenue from pest control services is recognized as services are rendered. The Company’s revenue recognition policies are designed to recognize revenues upon transfer of control at the time services are performed. For certain revenue types, because of the timing of billing and the receipt of cash versus the timing of performing services, certain accounting estimates are utilized. Residential and commercial pest control services are primarily recurring in nature on a monthly, bi-monthly or quarterly basis, while certain types of commercial customers may receive multiple treatments within a given month. In general, pest control customers sign an initial one -year contract, and revenues are recognized at the time services are performed. The Company defers recognition of advance payments and recognizes the revenue as the services are rendered. The Company classifies discounts related to the advance payments as a reduction in revenues. Termite control services (including traditional and baiting) - Rollins provides both conventional and baiting termite protection services. Traditional termite protection uses “Termidor” liquid treatment and/or dry foam and Orkin foam to treat voids and spaces around the property, while baiting termite protection uses baits to disrupt the molting process termites require for growth and offers ongoing protection. Revenue from initial termite treatment services is recognized as services are provided. Maintenance/monitoring/inspection - In connection with the initial service offerings, Rollins provides recurring maintenance, monitoring or inspection services to help protect consumer’s property for any future sign of termite activities after the original treatment. This recurring service is a service-type warranty under ASC 606 as it is routinely sold and purchased separately from the initial treatment services and is typically purchased or renewed annually. Termite baiting revenues are recognized based on the transfer of control of the individual units of accounting. At the inception of a new baiting services contract, upon quality control review of the installation, the Company recognizes revenue for the installation of the monitoring stations, initial directed liquid termiticide treatment and servicing of the monitoring stations. A portion of the contract amount is deferred for the undelivered monitoring element. This portion is recognized as income on a straight-line basis over the remaining contract term, which results in recognition of revenue that depicts the Company's performance in transferring control of the service. The allocation of the purchase price to the two deliverables is based on the relative stand-alone selling price. There are no contingencies related to the delivery of additional items or meeting other specified performance conditions. Baiting renewal revenue is deferred and recognized over the annual contract period on a straight-line basis that depicts the Company's performance in transferring control of the service. Revenue received for conventional termite renewals is deferred and recognized on a straight-line basis over the remaining contract term that depicts the Company's performance in transferring control of the service; and, the cost of reinspections, reapplications and repairs and associated labor and chemicals are expensed as incurred. For outstanding claims, an estimate is made of the costs to be incurred (including legal costs) based upon current factors and historical information. The performance of reinspections tends to be close to the contract renewal date and while reapplications and repairs involve an insubstantial number of the contracts, these costs are incurred over the contract term. As the revenue is being deferred, the future cost of reinspections, reapplications and repairs and associated labor and chemicals applicable to the deferred revenue are expensed as incurred. The Company accrues for noticed claims. The costs of providing termite services upon renewal are compared to the expected revenue to be received and a provision is made for any expected losses. Miscellaneous services (e.g., cleaning, etc.) - In certain agreements with customers, Rollins may offer other miscellaneous services, including restroom cleaning (e.g., eliminating foul odors, grease and grime which could attract pests), training (e.g., seminar covering Good Manufacturing Practices and product stewardship), etc. Revenue from miscellaneous services is recognized when services are provided. Products - Depending on customer demand, Rollins may separately sell pest control and/or termite protection products, such as baits. Revenue from product sales is recognized upon transfer of control of the asset. Equipment rental (or lease) - Depending on customer demand, Rollins may lease certain pest control and/or termite protection equipment. Revenue from equipment rentals are recognized over the period of the rental/lease. Revenue from equipment rentals are not material and represent less than 1.0% of the Company's revenues for each reported period. Right to access intellectual property (Franchise) - The right to access Rollins’ intellectual property is an essential part of Orkin’s franchising agreements. These agreements provide the franchisee (the customer) a license to use the Rollins’ name and trademark when advertising and selling services to end customers in their normal course of business. Orkin Franchise agreements contain a clause allowing Orkin to purchase certain assets of the franchisee. This is only an offer for Orkin to re-purchase the assets originally provided by Orkin to the franchisee and is not a performance obligation or a form of consideration. International and domestic franchising revenue was less than 0.5% of the Company’s annual revenues. All Orkin domestic franchises have a guaranteed repurchase clause that the Orkin franchise may be repurchased by Orkin at a later date once it has been established. Deferred Orkin franchise fees of $3.4 million at both March 31, 2018 and December 31, 2017 were not material to the Company's financial statements. Royalties from Orkin franchises are accrued and recognized as revenues are earned on a monthly basis. Revenue from franchises was $2.4 million for each of the three month periods ended March 31, 2018 and 2017, respectively. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized subsequent to invoicing. For multi-year agreements, we generally invoice customers annually at the beginning of each annual coverage period. The balance of long-term accounts receivable, net of allowance for doubtful accounts, was $22.3 million as of March 31, 2018. As of December 31, 2017, long-term accounts receivable, net of allowance for doubtful accounts, were $20.4 million and are included in financed receivables as a long-term asset on our consolidated statements of financial position. Unearned revenue is comprised mainly of unearned revenue related to the Company’s termite baiting offering and year-in-advance pest control services for which we have been paid in advance and earn the revenue when we transfer control of the product or service. Refer to Note 7 - Unearned Revenue for further information, including changes in unearned revenue during the period. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Allowance for doubtful accounts | The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. |
Recently issued accounting standards | Recently issued accounting standards to be adopted in 2018 or later In June of 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The updated accounting guidance requires changes to the recognition of credit losses on financial instruments not accounted for at fair value through net income. The guidance is effective for interim and annual periods beginning after December 15, 2019. The Company is currently evaluating the effect the guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), which provides additional implementation guidance on the previously issued ASU 2016-02 Leases (Topic 842). ASU 2016-02 requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. Based on a preliminary assessment, the Company expects the adoption of this guidance to have a material impact on its assets and liabilities due to the recognition of right-of-use assets and lease liabilities on its consolidated balance sheets at the beginning of the earliest period presented. The Company is continuing its assessment, which may identify additional impacts this guidance will have on its consolidated financial statements and disclosures. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), which provides new guidance intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. This ASU is effective for the Company beginning in fiscal year 2020. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. |
RECENT ACCOUNTING PRONOUNCEME21
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Receivables and allowance for doubtful accounts | Activity in the allowance for doubtful accounts was as follows: (In thousands) Three Months ended March 31, 2018 Balance at December 31, 2017 $ 14,706 Charged to costs and expenses 932 Net (deductions) recoveries (2,115 ) Balance at March 31, 2018 $ 13,523 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by major geographic area, and by significant product and service offerings | Revenue, classified by the major geographic areas in which our customers are located, was as follows: (in thousands) Three Months Ended March 31, 2018 2017 United States $ 375,959 $ 345,580 Other countries 32,783 29,667 Total Revenues $ 408,742 $ 375,247 Revenue from external customers, classified by significant product and service offerings, was as follows: (in thousands) Three Months Ended March 31, 2018 2017 Residential contract revenue $ 144,197 $ 132,344 Commercial contract revenue 132,079 124,833 Termite completions, bait monitoring, & renewals 76,491 65,652 Other revenues 55,975 52,418 Total Revenues $ 408,742 $ 375,247 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | Basic and diluted earnings per share attributable to common and restricted shares of common stock for the period were as follows: Three Months Ended 2018 2017 Basic and diluted earnings per share Common stock $ 0.22 $ 0.18 Restricted shares of common stock $ 0.22 $ 0.18 |
UNEARNED REVENUE (Tables)
UNEARNED REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Changes in unearned revenue | Changes in unearned revenue were as follows: (In thousands) Three Months ended March 31, 2018 Balance at December 31, 2017 $ 117,614 Deferral of unearned revenue 47,725 Recognition of unearned revenue (38,809 ) Balance at March 31, 2018 126,530 Year ended December 31, 2017 Balance at December 31, 2016 $ 106,323 Deferral of unearned revenue 140,019 Recognition of unearned revenue (128,728 ) Balance at December 31, 2017 117,614 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Components of stock-based compensation | The following table summarizes the components of the Company’s stock-based compensation programs recorded as expense: Three Months Ended (in thousands) 2018 2017 Time lapse restricted stock: Pre-tax compensation expense $ 3,093 $ 3,267 Tax benefit (786 ) (1,264 ) Restricted stock expense, net of tax $ 2,307 $ 2,003 |
Unvested restricted stock activity | The following table summarizes information on unvested restricted stock outstanding as of March 31, 2018 : Number of Shares Average Grant- Date Fair Value Unvested Restricted Stock at December 31, 2017 2,017 $ 24.50 Forfeited (5 ) 18.68 Vested (586 ) 19.69 Granted 384 47.88 Unvested Restricted Stock at March 31, 2018 1,810 $ 31.00 |
PENSION AND POST RETIREMENT B26
PENSION AND POST RETIREMENT BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit | The following table represents the net periodic pension benefit costs and related components in accordance with FASB ASC 715 “ Compensation Retirement Benefits”: Components of Net Pension Benefit Gain Three Months Ended (in thousands) 2018 2017 Interest and service cost $ 1,995 $ 2,138 Expected return on plan assets (3,443 ) (3,342 ) Amortization of net loss 826 830 Net periodic benefit $ (622 ) $ (374 ) |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Assets acquired and liabilities assumed | The preliminary values of major classes of assets acquired and liabilities assumed recorded at the date of acquisition, as adjusted during the valuation period, are included in the reconciliation of the total consideration as follows (in thousands): March 31, 2018 Accounts Receivable $ 1,536 Current Assets 273 Equipment and property 3,591 Goodwill 33,613 Customer Contracts and other intangible assets 18,225 Current liabilities (9,310 ) Long-term liabilities (490 ) Total consideration paid $ 47,438 Less: Contingent consideration liability (4,284 ) Total cash purchase price $ 43,154 |
Components of intangible assets | Customer contracts and other amortizable intangible assets are amortized on a straight-line basis over their economic useful lives. The following table sets forth the components of intangible assets as of March 31, 2018 (in thousands): Intangible Asset Carrying Value Useful Life in Years Customer contracts $ 176,447 3 - 12 Trademarks and tradenames 50,198 0 - 20 Non-compete agreements 4,054 3 - 20 Patents 2,405 3 - 15 Other assets 2,752 10 Internet domains 2,227 n/a Total customer contracts and other intangible assets $ 238,083 |
DERIVATIVE INSTRUMENTS AND HE28
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding derivative instruments | As of March 31, 2018 , the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (in thousands except for number of instruments): Non-Designated Derivative Summary Number of Instruments Sell Notional Buy Notional FX Forward Contracts Sell AUD/Buy USD Fwd Contract 3 $ 550 $ 425 Sell CAD/Buy USD Fwd Contract 6 $ 4,800 $ 3,808 Total 9 $ — $ 4,233 |
Fair value of derivative instruments and classification on the balance sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of March 31, 2018 and December 31, 2017 (in thousands): Tabular Disclosure of Fair Values of Derivative Instruments Derivatives Asset Derivative Liabilities Fair Value as of: March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 Derivatives Not Designated as Hedging Instruments FX Forward Contracts Balance Sheet Location Other Assets Other Assets Other Current Liabilities Other Current Liabilities Sell AUD/Buy USD Fwd Contract $ 2 $ — $ — $ (9 ) Sell CAD/Buy USD Fwd Contract $ 73 $ — $ — $ (61 ) Total $ 75 $ — $ — $ (70 ) |
Effects of derivative instruments on income statement | The table below presents the effect of the Company’s derivative financial instruments on the Income Statement as of March 31, 2018 and March 31, 2017 (in thousands): Effect of Derivative Instruments on the Income Statement for Derivatives Not Designated as Hedging Instruments for the Three Months Ended March 31, 2018 and 2017 Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income Amount of Gain or 2018 2017 Sell AUD/Buy USD Fwd Contract Other Inc/(Exp) $ 11 $ (8 ) Sell CAD/Buy USD Fwd Contract Other Inc/(Exp) 136 38 Total $ 147 $ 30 |
Derivative instruments classification within fair value hierarchy | The table below presents the total fair value classification within the fair value hierarchy for the complete portfolio of derivative transactions at March 31, 2018 (in thousands): Recurring Fair Value Measurements Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Fair Value at 2018 2017 2018 2017 2018 2017 2018 2017 Assets Derivative Financial Instruments $ — $ — $ 75 $ 36 $ — $ — $ 75 $ 36 Liabilities Derivative Financial Instruments $ — $ — $ — $ (21 ) $ — $ — $ — $ (21 ) |
BASIS OF PREPARATION AND OTHER
BASIS OF PREPARATION AND OTHER (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
RECENT ACCOUNTING PRONOUNCEME30
RECENT ACCOUNTING PRONOUNCEMENTS - Receivables and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Net [Roll Forward] | ||
Balance at December 31, 2017 | $ 14,706 | |
Charged to costs and expenses | 932 | $ 61 |
Net (deductions) recoveries | (2,115) | |
Balance at March 31, 2018 | $ 13,523 |
RECENT ACCOUNTING PRONOUNCEME31
RECENT ACCOUNTING PRONOUNCEMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 117,934 | $ 109,029 | |
Long-term accounts receivable, net | $ 22,300 | 20,400 | |
Equipment Rental | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue (less than) | 1.00% | ||
Pest Control | |||
Disaggregation of Revenue [Line Items] | |||
Contract with customer, term | 1 year | ||
Franchise | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue (less than) | 0.50% | ||
Deferred revenue | $ 3,400 | $ 3,400 | |
Revenue | $ 2,400 | $ 2,400 | |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Contract with customer, payment term | 30 days | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Contract with customer, payment term | 60 days |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 408,742 | $ 375,247 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 375,959 | 345,580 |
Other countries | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 32,783 | 29,667 |
Residential contract revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 144,197 | 132,344 |
Commercial contract revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 132,079 | 124,833 |
Termite completions, bait monitoring, & renewals | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 76,491 | 65,652 |
Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 55,975 | $ 52,418 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Common stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Earnings per share - basic (in dollars per share) | $ 0.22 | $ 0.18 |
Earnings per share - diluted (in dollars per share) | 0.22 | 0.18 |
Restricted shares of common stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Earnings per share - basic (in dollars per share) | 0.22 | 0.18 |
Earnings per share - diluted (in dollars per share) | $ 0.22 | $ 0.18 |
FAIR VALUE OF FINANCIAL INSTR34
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Line of Credit | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity | $ 175,000,000 | |
Outstanding borrowings | 0 | $ 0 |
Letter of Credit | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity | 75,000,000 | |
Swingline Credit Facility | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity | $ 25,000,000 |
UNEARNED REVENUE (Details)
UNEARNED REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Change in Contract with Customer, Liability [Roll Forward] | |||
Balance, beginning of period | $ 117,614 | $ 106,323 | $ 106,323 |
Deferral of unearned revenue | 47,725 | 140,019 | |
Recognition of unearned revenue | (38,809) | $ (32,600) | (128,728) |
Balance, end of period | 126,530 | 117,614 | |
Long-term unearned revenue | $ 8,600 | $ 8,600 | |
Long-term unearned revenue, recognition period (or less) | 5 years |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payment of dividends | $ 30,602 | $ 25,058 | |
Dividends paid (in dollars per share) | $ 0.14 | $ 0.115 | |
Number of shares repurchased (in shares) | 0 | 0 | |
Repurchase of common stock | $ 9,225 | $ 7,500 | $ 8,246 |
Common stock reserved for issuance (in shares) | 3,900,000 | ||
Unvested restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 48,100 | $ 32,900 | |
Unrecognized compensation cost, period for recognition | 4 years 6 months 12 days | 3 years 10 months 24 days |
STOCKHOLDERS' EQUITY - Componen
STOCKHOLDERS' EQUITY - Components of Stock-Based Compensation (Details) - Time lapse restricted stock - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax compensation expense | $ 3,093 | $ 3,267 |
Tax benefit | (786) | (1,264) |
Restricted stock expense, net of tax | $ 2,307 | $ 2,003 |
STOCKHOLDERS' EQUITY - Unvested
STOCKHOLDERS' EQUITY - Unvested Restricted Stock Activity (Details) - Unvested restricted stock shares in Thousands | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested Restricted Stock, Beginning Balance (in shares) | shares | 2,017 |
Forfeited (in shares) | shares | (5) |
Vested (in shares) | shares | (586) |
Granted (in shares) | shares | 384 |
Unvested Restricted Stock, Ending Balance (in shares) | shares | 1,810 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Unvested Restricted Stock (in dollars per share) | $ / shares | $ 24.50 |
Forfeited (in dollars per share) | $ / shares | 18.68 |
Vested (in dollars per share) | $ / shares | 19.69 |
Granted (in dollars per share) | $ / shares | 47.88 |
Unvested Restricted Stock (in dollars per share) | $ / shares | $ 31 |
PENSION AND POST RETIREMENT B39
PENSION AND POST RETIREMENT BENEFIT PLANS - Net Periodic Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Interest and service cost | $ 1,995 | $ 2,138 |
Expected return on plan assets | (3,443) | (3,342) |
Amortization of net loss | 826 | 830 |
Net periodic benefit | $ (622) | $ (374) |
PENSION AND POST RETIREMENT B40
PENSION AND POST RETIREMENT BENEFIT PLANS - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Company contributions to defined benefit plan | $ 0 | $ 0 | $ 0 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) customer in Thousands | Aug. 01, 2017acquisitionlocationcustomer | Mar. 31, 2018USD ($)acquisition | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)acquisition |
Business Acquisition [Line Items] | ||||
Number of acquisitions | acquisition | 16 | 23 | ||
Carrying amount of goodwill | $ 364,606,000 | $ 346,514,000 | ||
Carrying amount of goodwill in foreign countries | 46,500,000 | 46,300,000 | ||
Goodwill and intangible asset impairment | $ 0 | |||
Finite-lived intangible assets, net | 238,083,000 | |||
Other countries | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, net | 1,700,000 | 1,700,000 | ||
Customer contracts | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, net | 176,447,000 | 152,869,000 | ||
Customer contracts | Other countries | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, net | 33,000,000 | 29,800,000 | ||
Trademarks and tradenames | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, net | 50,198,000 | 49,998,000 | ||
Other Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, net | 11,400,000 | 11,600,000 | ||
Other Intangible Assets | Other countries | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, net | $ 1,600,000 | $ 1,700,000 | ||
Northwest Exterminating | ||||
Business Acquisition [Line Items] | ||||
Number of acquisitions | acquisition | 23 | |||
Number of states in which entity operates | location | 5 | |||
Number of customers | customer | 120 |
BUSINESS COMBINATIONS - Assets
BUSINESS COMBINATIONS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 364,606 | $ 346,514 |
Series of Individually Immaterial Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Accounts Receivable | 1,536 | |
Current Assets | 273 | |
Equipment and property | 3,591 | |
Goodwill | 33,613 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 18,225 | |
Current liabilities | (9,310) | |
Long-term liabilities | (490) | |
Total consideration paid | 47,438 | |
Less: Contingent consideration liability | (4,284) | |
Total cash purchase price | $ 43,154 |
BUSINESS COMBINATIONS - Intangi
BUSINESS COMBINATIONS - Intangible Assets Acquired (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 238,083 | |
Internet domains | ||
Business Acquisition [Line Items] | ||
Carrying Value, indefinite-lived intangible assets | 2,227 | |
Customer contracts | ||
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 176,447 | $ 152,869 |
Customer contracts | Minimum | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 3 years | |
Customer contracts | Maximum | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 12 years | |
Trademarks and tradenames | ||
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 50,198 | $ 49,998 |
Trademarks and tradenames | Minimum | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 0 years | |
Trademarks and tradenames | Maximum | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 20 years | |
Non-compete agreements | ||
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 4,054 | |
Non-compete agreements | Minimum | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 3 years | |
Non-compete agreements | Maximum | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 20 years | |
Patents | ||
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 2,405 | |
Patents | Minimum | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 3 years | |
Patents | Maximum | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 15 years | |
Other assets | ||
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 2,752 | |
Useful Life in Years | 10 years |
DERIVATIVE INSTRUMENTS AND HE44
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Derivative Instruments (Details) $ in Thousands | Mar. 31, 2018USD ($)derivative_instrument |
Derivative [Line Items] | |
Number of Instruments | derivative_instrument | 9 |
Sell Notional | $ 0 |
Buy Notional | $ 4,233 |
Sell AUD/Buy USD Fwd Contract | |
Derivative [Line Items] | |
Number of Instruments | derivative_instrument | 3 |
Sell Notional | $ 550 |
Buy Notional | $ 425 |
Sell CAD/Buy USD Fwd Contract | |
Derivative [Line Items] | |
Number of Instruments | derivative_instrument | 6 |
Sell Notional | $ 4,800 |
Buy Notional | $ 3,808 |
DERIVATIVE INSTRUMENTS AND HE45
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Instruments and Classification on the Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivatives Asset | $ 75 | $ 0 |
Derivative Liabilities | 0 | (70) |
Sell AUD/Buy USD Fwd Contract | ||
Derivative [Line Items] | ||
Derivatives Asset | 2 | 0 |
Derivative Liabilities | 0 | (9) |
Sell CAD/Buy USD Fwd Contract | ||
Derivative [Line Items] | ||
Derivatives Asset | 73 | 0 |
Derivative Liabilities | $ 0 | $ (61) |
DERIVATIVE INSTRUMENTS AND HE46
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effects of Derivative Instruments on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income | $ 147 | $ 30 |
Sell AUD/Buy USD Fwd Contract | Other Inc/(Exp) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income | 11 | (8) |
Sell CAD/Buy USD Fwd Contract | Other Inc/(Exp) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income | $ 136 | $ 38 |
DERIVATIVE INSTRUMENTS AND HE47
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Instruments Classification Within Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Assets | |||
Derivative Financial Instruments | $ 75 | $ 0 | |
Liabilities | |||
Derivative Financial Instruments | 0 | $ (70) | |
Fair Value, Measurements, Recurring | |||
Assets | |||
Derivative Financial Instruments | 75 | $ 36 | |
Liabilities | |||
Derivative Financial Instruments | 0 | (21) | |
Fair Value, Measurements, Recurring | Level 1 | |||
Assets | |||
Derivative Financial Instruments | 0 | 0 | |
Liabilities | |||
Derivative Financial Instruments | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Assets | |||
Derivative Financial Instruments | 75 | 36 | |
Liabilities | |||
Derivative Financial Instruments | 0 | (21) | |
Fair value of derivatives, net | 75 | ||
Obligation to return cash | 75 | ||
Fair Value, Measurements, Recurring | Level 3 | |||
Assets | |||
Derivative Financial Instruments | 0 | 0 | |
Liabilities | |||
Derivative Financial Instruments | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Apr. 24, 2018$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Quarterly dividend declared (in dollars per share) | $ 0.14 |