Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 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 | Sep. 30, 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 | 218,212,261 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Ex Transition Period | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 118,652 | $ 107,050 |
Trade receivables, net of allowance for doubtful accounts of $13,080 and $11,814, respectively | 122,375 | 97,802 |
Financed receivables, short-term, net of allowance for doubtful accounts of $1,691 and $1,535, respectively | 20,384 | 17,263 |
Materials and supplies | 16,093 | 14,983 |
Other current assets | 25,576 | 25,697 |
Total current assets | 303,080 | 262,795 |
Equipment and property, net | 136,857 | 134,088 |
Goodwill | 365,480 | 346,514 |
Customer contracts | 185,477 | 152,869 |
Trademarks & tradenames | 53,850 | 49,998 |
Other intangible assets | 11,587 | 11,550 |
Financed receivables, long-term, net of allowance for doubtful accounts of $1,416 and $1,357, respectively | 26,882 | 20,414 |
Prepaid Pension | 19,522 | 17,595 |
Deferred income taxes | 5,863 | 18,420 |
Other assets | 20,975 | 19,420 |
Total Assets | 1,129,573 | 1,033,663 |
LIABILITIES | ||
Accounts payable | 29,991 | 26,161 |
Accrued insurance | 27,722 | 28,018 |
Accrued compensation and related liabilities | 73,829 | 73,016 |
Unearned revenues | 123,916 | 109,029 |
Other current liabilities | 53,923 | 58,345 |
Total current liabilities | 309,381 | 294,569 |
Accrued insurance, less current portion | 33,883 | 34,245 |
Accrued pension | 58 | |
Long-term accrued liabilities | 51,493 | 50,925 |
Total liabilities | 394,815 | 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, 218,212,261 and 217,992,177 shares issued and outstanding, respectively | 218,212 | 217,992 |
Paid in capital | 81,682 | 81,405 |
Accumulated other comprehensive loss | (54,637) | (45,956) |
Retained earnings | 489,501 | 400,483 |
Total stockholders' equity | 734,758 | 653,924 |
Total liabilities and stockholders' equity | $ 1,129,573 | $ 1,033,663 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Condensed Consolidated Statements Of Financial Position | ||
Trade receivables, short-term, allowance for doubtful accounts | $ 13,080 | $ 11,814 |
Financed receivables, short-term, allowance for doubtful accounts | 1,691 | 1,535 |
Financed receivables, long-term, allowance for doubtful accounts | $ 1,416 | $ 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) | 218,212,261 | 217,992,177 |
Common stock, outstanding (in shares) | 218,212,261 | 217,992,177 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
REVENUES | ||||
Customer services | $ 487,739 | $ 450,442 | $ 1,376,942 | $ 1,259,244 |
COSTS AND EXPENSES | ||||
Cost of services provided | 236,287 | 218,781 | 673,202 | 612,424 |
Depreciation and amortization | 16,867 | 14,313 | 50,149 | 41,630 |
Sales, general and administrative | 145,072 | 134,932 | 414,938 | 379,753 |
Gain on sale of assets, net | (314) | (66) | (678) | (179) |
Interest income, net | (63) | (79) | 70 | (342) |
INCOME BEFORE INCOME TAXES | 89,890 | 82,561 | 239,261 | 225,958 |
PROVISION FOR INCOME TAXES | 23,262 | 31,131 | 58,566 | 80,569 |
NET INCOME | $ 66,628 | $ 51,430 | $ 180,695 | $ 145,389 |
NET INCOME PER SHARE - BASIC AND DILUTED (in dollars per share) | $ 0.31 | $ 0.24 | $ 0.83 | $ 0.67 |
DIVIDENDS PAID PER SHARE (in dollars per share) | $ 0.14 | $ 0.12 | $ 0.42 | $ 0.35 |
Weighted average participating shares outstanding - basic and diluted (in share) | 218,214,000 | 217,988,000 | 218,188,000 | 217,987,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 66,628 | $ 51,430 | $ 180,695 | $ 145,389 |
Other comprehensive earnings (loss), net of tax | ||||
Foreign currency translation adjustments | (611) | 4,085 | (8,681) | 10,474 |
Other comprehensive earnings (loss) | (611) | 4,085 | (8,681) | 10,474 |
Comprehensive earnings | $ 66,017 | $ 55,515 | $ 172,014 | $ 155,863 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive income/ (loss) [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2016 | $ 217,792 | $ 77,452 | $ (70,075) | $ 343,376 | $ 568,545 |
Balance (in shares) at Dec. 31, 2016 | 217,792,000 | ||||
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 | $ 434 | 11,965 | 12,399 | ||
Stock compensation (in shares) | 434,000 | ||||
Employee stock buybacks | $ (234) | (8,012) | (8,246) | ||
Employee stock buybacks (in shares) | (234,000) | ||||
Balance at Dec. 31, 2017 | $ 217,992 | 81,405 | (45,956) | 400,483 | 653,924 |
Balance (in shares) at Dec. 31, 2017 | 217,992,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 180,695 | 180,695 | |||
Other comprehensive income, net of tax | |||||
Foreign currency translation adjustments | (8,681) | (8,681) | |||
Cash dividends | (91,677) | (91,677) | |||
Stock compensation | $ 409 | 9,621 | 10,030 | ||
Stock compensation (in shares) | 409,000 | ||||
Employee stock buybacks | $ (189) | (9,344) | (9,533) | ||
Employee stock buybacks (in shares) | (189,000) | ||||
Balance at Sep. 30, 2018 | $ 218,212 | $ 81,682 | $ (54,637) | $ 489,501 | $ 734,758 |
Balance (in shares) at Sep. 30, 2018 | 218,212,000 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 180,695 | $ 145,389 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 50,149 | 41,630 |
Provision for deferred income taxes | 4,604 | 9,386 |
Provision for bad debts | 9,509 | 7,222 |
Stock - based compensation expense | 10,030 | 9,406 |
Other, net | (1,920) | (728) |
Changes in operating assets and liabilities | (39,793) | (22,918) |
Net cash provided by operating activities | 213,274 | 189,387 |
INVESTING ACTIVITIES | ||
Cash used for acquisitions of companies, net of cash acquired | (71,785) | (127,881) |
Purchases of equipment and property | (19,645) | (17,217) |
Proceeds from sales of franchises | 343 | 437 |
Other | 1,002 | 67 |
Net cash used in investing activities | (90,085) | (144,594) |
FINANCING ACTIVITIES | ||
Cash paid for common stock purchased | (9,533) | (8,193) |
Dividends paid | (91,677) | (75,182) |
Net cash used in financing activities | (101,210) | (83,375) |
Effect of exchange rate changes on cash | (10,377) | 9,194 |
Net increase/(decrease) in cash and cash equivalents | 11,602 | (29,388) |
Cash and cash equivalents at beginning of period | 107,050 | 142,785 |
Cash and cash equivalents at end of period | $ 118,652 | $ 113,397 |
BASIS OF PREPARATION AND OTHER
BASIS OF PREPARATION AND OTHER | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation and Other | NOTE 1. BASIS OF PREPARATION AND OTHER Basis of Preparation 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 and nine month periods ended September 30, 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, a few customers, or the Company’s foreign operations. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2. 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 satisfaction of the performance obligation 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., seminars 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 1.0% 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. The Company amortizes the initial franchise fee over the initial franchise term. Deferred Orkin franchise fees of $1.7 million at September 30, 2018 and $3.4 million 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 Orkin franchises was $2.0 million for the three month period ended September 30, 2018 and $1.5 million for the same period in 2017 and $7.0 million and $4.1 million for the nine month periods ended in September 30, 2018 and 2017, respectively. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record 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 $26.9 million as of September 30, 2018. As of December 31, 2017, long-term accounts receivable, net of allowance for doubtful accounts, was $20.4 million and is 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) Balance at December 31, 2017 $ 14,706 Charged to costs and expenses 9,509 Net (write-offs)/recoveries (8,028 ) Balance at September 30, 2018 $ 16,187 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 February 2016, the FASB issued ASU 2016-02, Leases (ASC 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. 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 (ASC 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 | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 3. REVENUE Adoption of ASC 606, “Revenue from Contracts with Customers”. On January 1, 2018, and the Company adopted ASC 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 ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605. There was no material impact on the Company’s financial statements as a result of adopting ASC 606 for the nine months ended September 30, 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 in a country other than the United States accounted for more than 10% of the sales for the periods listed on the following table. Revenue, classified by the major geographic areas in which our customers are located, was as follows: (In thousands) Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 United States $ 448,910 $ 414,278 $ 1,268,652 $ 1,160,157 Other countries 38,829 36,164 108,290 99,087 Total Revenues $ 487,739 $ 450,442 $ 1,376,942 $ 1,259,244 Revenue from external customers, classified by significant product and service offerings, was as follows: (In thousands) Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Residential contract revenue $ 183,512 $ 165,878 $ 496,957 $ 449,474 Commercial contract revenue 141,309 133,761 410,227 387,767 Termite completions, bait monitoring, & renewals 83,136 74,929 253,501 221,531 Other revenues 80,782 75,874 216,257 200,472 Total Revenues $ 488,739 $ 450,442 $ 1,376,942 $ 1,259,244 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 4. EARNINGS PER SHARE The Company follows ASC 260, 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 Nine Months Ended 2018 2017 2018 2017 Basic and diluted earnings per share Common stock $ 0.31 $ 0.24 $ 0.83 $ 0.67 Restricted shares of common stock $ 0.30 $ 0.23 $ 0.85 $ 0.65 |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | NOTE 5. 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 | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 6. 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 September 30, 2018 and December 31, 2017. The Company remained in compliance with applicable debt covenants through the date of this filing and expects to maintain compliance through 2018. |
UNEARNED REVENUE
UNEARNED REVENUE | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Unearned Revenue | NOTE 7. UNEARNED REVENUE Changes in unearned revenue were as follows: (In Thousands) 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 Nine months ended September 30, 2018 Balance at December 31, 2017 $ 117,614 Deferral of unearned revenue 134,527 Recognition of unearned revenue (117,297 ) Balance at September 30, 2018 $ 134,844 Deferred revenue recognized in the three months ended September 30, 2018 and 2017 was $39.0 million and $36.3 million, respectively, and was $117.3 million and $101.7 million for the nine month period ended September 30, 2018 and 2017, respectively. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”), which includes both unearned revenue and revenue that will be invoiced and recognized in future periods. The Company has no material contracted not recognized revenue as of September 30, 2018 or December 31, 2017. At September 30, 2018 and December 31, 2017, the Company had long-term unearned revenue of $10.9 million and $8.6 million, respectively. 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 | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 8. STOCKHOLDERS’ EQUITY During the nine months ended September 30, 2018, the Company paid $91.7 million or $0.42 per share in cash dividends compared to $75.2 million or $0.35 per share during the same period in 2017. During the first nine months ended September 30, 2018 and during the same period in 2017 the Company did not repurchase shares on the open market. The Company repurchases shares from employees for the payment of taxes on restricted shares that have vested. The Company repurchased $0.2 million and $0.5 million of common stock for the quarter ended September 30, 2018 and during the same period in 2017, respectively, and $9.5 million and $8.2 million for the nine months ended September 30, 2018 and 2017, respectively. 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, 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 September 30, 2018, approximately 6.0 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 Nine Months Ended (in thousands) 2018 2017 2018 2017 Time lapse restricted stock: Pre-tax compensation expense $ 3,660 $ 3,049 $ 10,030 $ 9,406 Tax benefit (947 ) (1,180 ) (2,455 ) (3,640 ) Restricted stock expense, net of tax $ 2,713 $ 1,869 $ 7,575 $ 5,766 The following table summarizes information on unvested restricted stock outstanding as of September 30, 2018: Number of Average Grant- Unvested Restricted Stock at December 31, 2017 2,017 $ 24.49 Forfeited (19 ) 26.83 Vested (603 ) 19.40 Granted 428 48.36 Unvested Restricted Stock at September 30, 2018 1,823 $ 31.63 At September 30, 2018 and December 31, 2017, the Company had $43.2 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 4.1 years and 3.9 years, respectively. |
PENSION AND POST RETIREMENT BEN
PENSION AND POST RETIREMENT BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Post Retirement Benefit Plans | NOTE 9. 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 Nine Months Ended (in thousands) 2018 2017 2018 2017 Interest and service cost $ 1,995 $ 2,138 $ 5,985 $ 6,414 Expected return on plan assets (3,443 ) (3,342 ) (10,329 ) (10,026 ) Amortization of net loss 826 830 2,478 2,490 Net periodic benefit $ (622 ) $ (374 ) $ (1,866 ) $ (1,122 ) During the nine months ended September 30, 2018 and the same period in 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 Plans and is not expecting to make further contributions in 2018. The Company has initiated the process to transition its Pension Plan to an Insurance provider. The transition will take approximately 12-15 months. The Company’s Pension Plan is currently more than 100% funded. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 10. BUSINESS COMBINATIONS The Company made 32 acquisitions during the nine month period ended September 30, 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 July 2, 2018, the Company acquired the stock of Aardwolf Pestkare (Singapore) Pte Ltd. This is Rollins’ first company-owned operation in Singapore. 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): September 30, Accounts receivable $ 3,422 Materials & supplies 555 Equipment and property 6,790 Goodwill 21,055 Customer contracts and other intangible assets 66,738 Current liabilities (19,011 ) Other assets and liabilities, net (2,535 ) Total consideration paid $ 77,014 Less: Contingent consideration liability (5,229 ) Total cash purchase price $ 71,785 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 $365.5 million and $346.5 million at September 30, 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 $52.8 million at September 30, 2018 and $46.3 million at December 31, 2017. The Company completed its most recent annual impairment analysis as of September 30, 2018. Based upon the results of this analysis, the Company has concluded that no impairment of its goodwill or other intangible assets was indicated. The carrying amount of customer contracts was $185.5 million and $152.9 million at September 30, 2018 and December 31, 2017, respectively. The carrying amount of trademarks and tradenames was $53.9 million and $50.0 million at September 30, 2018 and December 31, 2017, respectively. The carrying amount of other intangible assets was $11.6 million and $11.6 million at September 30, 2018 and December 31, 2017, respectively. The carrying amount of customer contracts in foreign countries was $43.4 million and $29.8 million at September 30, 2018 and December 31, 2017, respectively. The carrying amount of trademarks and tradenames in foreign countries was $3.3 million and $1.7 million at September 30, 2018 and December 31, 2017, respectively. The carrying amount of other intangible assets in foreign countries was $1.9 million and $1.7 million at September 30, 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 September 30, 2018 (in thousands): Intangible Asset Carrying Value Useful Life in Years Customer contracts $ 185,477 3-12 Trademarks and tradenames 53,850 0 - 20 Non-compete agreements 4,658 3-20 Patents 2,137 3-15 Other assets 2,565 10 Internet domains 2,227 n/a Total customer contracts and other intangible assets $ 250,914 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | NOTE 11. 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 net loss of $0.1 million for the quarter ended September 30, 2018 and a net loss of $0.2 million for the same quarter in the prior year. Changes in the fair value of derivatives for the nine months ended September 30, 2018 and during the same period in 2017 were equal to a gain of $0.2 million and a net loss of $0.3 million, respectively. As of September 30, 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 8 $ 1,050 $ 780 Sell CAD/Buy USD Fwd Contract 10 $ 6,200 $ 4,786 Total 18 $ 5,566 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 September 30, 2018 and December 31, 2017 (in thousands): Tabular Disclosure of Fair Values of Derivative Instruments Derivatives Asset Derivative Liabilities Fair Value as of: Derivatives Not Designated as Hedging Instruments September 30, December 31, September 30, December 31, FX Forward Contracts Balance Sheet Location Other Assets Other Assets Other Current Other Current Sell AUD/Buy USD Fwd Contract $ 22 $ — $ 2 $ (9) Sell CAD/Buy USD Fwd Contract 10 — 39 (61) Total $ 32 $ — $ 41 $ (70) The table below presents the effect of the Company’s derivative financial instruments on the income statement as of September 30, 2018 and September 30, 2017 (in thousands): Effect of Derivative Instruments on the Income Statement for Derivatives Not Designated as Hedging Instruments for the Three and Nine Months Ended September 30, 2018 and 2017 Derivatives Not Designated as Location of Gain or (Loss) Amount of Gain or (Loss) Amount of Gain or 2018 2017 2018 2017 Sell AUD/Buy USD Fwd Contract Other inc/(exp) $ 9 $ (11 ) $ 47 $ (29 ) Sell CAD/Buy USD Fwd Contract Other inc/(exp) (81 ) (224 ) 178 (319 ) Total $ (72 ) $ (235 ) $ 225 $ (348 ) The table below presents the total fair value classification within the fair value hierarchy for the complete portfolio of derivative transactions at September 30, 2018 (in thousands): Recurring Fair Value Measurements Quoted Prices in Active Markets for Identical Significant Other Significant Unobservable Assets and Liabilities Observable Inputs Inputs at September 30, at September 30, at September 30, Total Fair Value (Level 1) (Level 2) (Level 3) at September 30, 2018 2017 2018 2017 2018 2017 2018 2017 Assets Derivative Financial Instruments $ — $ — $ 32 $ — $ — $ — $ 32 $ — Liabilities Derivative Financial Instruments $ — $ — $ (41 ) $ (153 ) $ — $ — $ (41 ) $ (153 ) As of September 30, 2018, the fair value of derivatives in a net liability position was nine thousand dollars 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 September 30, 2018, it could have been required to settle its obligations under the agreements at their termination value of nine thousand dollars. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12. SUBSEQUENT EVENTS On October 23, 2018, the Company announced today that the Board of Directors has approved a three-for-two stock split of the Company’s common shares. The split will be affected by issuing one additional share of common stock for every two shares of common stock held. The additional shares will be distributed on December 10, 2018, to stockholders of record at the close of business on November 9, 2018. Fractional share amounts resulting from the split will be paid to shareholders in cash. Dividends will be paid on pre-split shares. In addition, the Company declared a regular quarterly cash dividend on its common stock of $0.14 per share plus a special year-end dividend of $0.14 per share both payable December 10, 2018 to stockholders of record at the close of business November 9, 2018. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 30, 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 satisfaction of the performance obligation 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., seminars 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 1.0% 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. The Company amortizes the initial franchise fee over the initial franchise term. Deferred Orkin franchise fees of $1.7 million at September 30, 2018 and $3.4 million 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 Orkin franchises was $2.0 million for the three month period ended September 30, 2018 and $1.5 million for the same period in 2017 and $7.0 million and $4.1 million for the nine month periods ended in September 30, 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 $26.9 million as of September 30, 2018. As of December 31, 2017, long-term accounts receivable, net of allowance for doubtful accounts, was $20.4 million and is 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) Balance at December 31, 2017 $ 14,706 Charged to costs and expenses 9,509 Net (write-offs)/recoveries (8,028 ) Balance at September 30, 2018 $ 16,187 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 | Recently issued accounting standards to be adopted in 2018 or later In February 2016, the FASB issued ASU 2016-02, Leases (ASC 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. 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 (ASC 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 PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 9 Months Ended |
Sep. 30, 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) Balance at December 31, 2017 $ 14,706 Charged to costs and expenses 9,509 Net (write-offs)/recoveries (8,028 ) Balance at September 30, 2018 $ 16,187 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by major geographic area, and by significant product and service offerings | Sales and usage-based taxes are excluded from revenues. No sales to an individual customer or in a country other than the United States accounted for more than 10% of the sales for the periods listed on the following table. Revenue, classified by the major geographic areas in which our customers are located, was as follows: (In thousands) Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 United States $ 448,910 $ 414,278 $ 1,268,652 $ 1,160,157 Other countries 38,829 36,164 108,290 99,087 Total Revenues $ 487,739 $ 450,442 $ 1,376,942 $ 1,259,244 Revenue from external customers, classified by significant product and service offerings, was as follows: (In thousands) Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Residential contract revenue $ 183,512 $ 165,878 $ 496,957 $ 449,474 Commercial contract revenue 141,309 133,761 410,227 387,767 Termite completions, bait monitoring, & renewals 83,136 74,929 253,501 221,531 Other revenues 80,782 75,874 216,257 200,472 Total Revenues $ 488,739 $ 450,442 $ 1,376,942 $ 1,259,244 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended 2018 2017 2018 2017 Basic and diluted earnings per share Common stock $ 0.31 $ 0.24 $ 0.83 $ 0.67 Restricted shares of common stock $ 0.30 $ 0.23 $ 0.85 $ 0.65 |
UNEARNED REVENUE (Tables)
UNEARNED REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Changes in unearned revenue | Changes in unearned revenue were as follows: (In Thousands) 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 Nine months ended September 30, 2018 Balance at December 31, 2017 $ 117,614 Deferral of unearned revenue 134,527 Recognition of unearned revenue (117,297 ) Balance at September 30, 2018 $ 134,844 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended (in thousands) 2018 2017 2018 2017 Time lapse restricted stock: Pre-tax compensation expense $ 3,660 $ 3,049 $ 10,030 $ 9,406 Tax benefit (947 ) (1,180 ) (2,455 ) (3,640 ) Restricted stock expense, net of tax $ 2,713 $ 1,869 $ 7,575 $ 5,766 |
Unvested restricted stock activity | The following table summarizes information on unvested restricted stock outstanding as of September 30, 2018: Number of Average Grant- Unvested Restricted Stock at December 31, 2017 2,017 $ 24.49 Forfeited (19 ) 26.83 Vested (603 ) 19.40 Granted 428 48.36 Unvested Restricted Stock at September 30, 2018 1,823 $ 31.63 |
PENSION AND POST RETIREMENT B_2
PENSION AND POST RETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit | Components of Net Pension Benefit Gain Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Interest and service cost $ 1,995 $ 2,138 $ 5,985 $ 6,414 Expected return on plan assets (3,443 ) (3,342 ) (10,329 ) (10,026 ) Amortization of net loss 826 830 2,478 2,490 Net periodic benefit $ (622 ) $ (374 ) $ (1,866 ) $ (1,122 ) |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, Accounts receivable $ 3,422 Materials & supplies 555 Equipment and property 6,790 Goodwill 21,055 Customer contracts and other intangible assets 66,738 Current liabilities (19,011 ) Other assets and liabilities, net (2,535 ) Total consideration paid $ 77,014 Less: Contingent consideration liability (5,229 ) Total cash purchase price $ 71,785 |
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 September 30, 2018 (in thousands): Intangible Asset Carrying Value Useful Life in Years Customer contracts $ 185,477 3-12 Trademarks and tradenames 53,850 0 - 20 Non-compete agreements 4,658 3-20 Patents 2,137 3-15 Other assets 2,565 10 Internet domains 2,227 n/a Total customer contracts and other intangible assets $ 250,914 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding derivative instruments | As of September 30, 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 8 $ 1,050 $ 780 Sell CAD/Buy USD Fwd Contract 10 $ 6,200 $ 4,786 Total 18 $ 5,566 |
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 September 30, 2018 and December 31, 2017 (in thousands): Tabular Disclosure of Fair Values of Derivative Instruments Derivatives Asset Derivative Liabilities Fair Value as of: Derivatives Not Designated as Hedging Instruments September 30, December 31, September 30, December 31, FX Forward Contracts Balance Sheet Location Other Assets Other Assets Other Current Other Current Sell AUD/Buy USD Fwd Contract $ 22 $ — $ 2 $ (9) Sell CAD/Buy USD Fwd Contract 10 — 39 (61) Total $ 32 $ — $ 41 $ (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 September 30, 2018 and September 30, 2017 (in thousands): Effect of Derivative Instruments on the Income Statement for Derivatives Not Designated as Hedging Instruments for the Three and Nine Months Ended September 30, 2018 and 2017 Derivatives Not Designated as Location of Gain or (Loss) Amount of Gain or (Loss) Amount of Gain or 2018 2017 2018 2017 Sell AUD/Buy USD Fwd Contract Other inc/(exp) $ 9 $ (11 ) $ 47 $ (29 ) Sell CAD/Buy USD Fwd Contract Other inc/(exp) (81 ) (224 ) 178 (319 ) Total $ (72 ) $ (235 ) $ 225 $ (348 ) |
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 September 30, 2018 (in thousands): Recurring Fair Value Measurements Quoted Prices in Active Markets for Identical Significant Other Significant Unobservable Assets and Liabilities Observable Inputs Inputs at September 30, at September 30, at September 30, Total Fair Value (Level 1) (Level 2) (Level 3) at September 30, 2018 2017 2018 2017 2018 2017 2018 2017 Assets Derivative Financial Instruments $ — $ — $ 32 $ — $ — $ — $ 32 $ — Liabilities Derivative Financial Instruments $ — $ — $ (41 ) $ (153 ) $ — $ — $ (41 ) $ (153 ) |
BASIS OF PREPARATION AND OTHER
BASIS OF PREPARATION AND OTHER (Details) | 9 Months Ended |
Sep. 30, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
RECENT ACCOUNTING PRONOUNCEME_4
RECENT ACCOUNTING PRONOUNCEMENTS (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||
Deferred revenue | $ 123,916 | $ 123,916 | $ 109,029 | ||
Revenue | 487,739 | $ 450,442 | 1,376,942 | $ 1,259,244 | |
Long-term accounts receivable, net | 26,900 | $ 26,900 | 20,400 | ||
Minimum [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with customer, payment term | 30 days | ||||
Maximum [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with customer, payment term | 60 days | ||||
Franchise [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Deferred revenue | 1,700 | $ 1,700 | $ 3,400 | ||
Revenue | $ 2,000 | $ 1,500 | $ 7,000 | $ 4,100 | |
Pest Control [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract with customer, term | 1 year |
RECENT ACCOUNTING PRONOUNCEME_5
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Net [Roll Forward] | ||
Balance at December 31, 2017 | $ 14,706 | |
Charged to costs and expenses | 9,509 | $ 7,222 |
Net (write-offs)/recoveries | (8,028) | |
Balance at September 30, 2018 | $ 16,187 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 487,739 | $ 450,442 | $ 1,376,942 | $ 1,259,244 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 448,910 | 414,278 | 1,268,652 | 1,160,157 |
Non-US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 38,829 | $ 36,164 | $ 108,290 | $ 99,087 |
REVENUE (Details 2)
REVENUE (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue | $ 487,739 | $ 450,442 | $ 1,376,942 | $ 1,259,244 |
Residential Contract Revenue [Member] | ||||
Revenue | 183,512 | 165,878 | 496,957 | 449,474 |
Commercial Contract Revenue [Member] | ||||
Revenue | 141,309 | 133,761 | 410,227 | 387,767 |
Termite Completions, Bait Monitoring, & Renewals [Member] | ||||
Revenue | 83,136 | 74,929 | 253,501 | 221,531 |
Other Revenues [Member] | ||||
Revenue | $ 80,782 | $ 75,874 | $ 216,257 | $ 200,472 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Earnings per share - basic and diluted (in dollars per share) | $ 0.31 | $ 0.24 | $ 0.83 | $ 0.67 |
Common Stock [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Earnings per share - basic and diluted (in dollars per share) | 0.31 | 0.24 | 0.83 | 0.67 |
Restricted Stock [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Earnings per share - basic and diluted (in dollars per share) | $ 0.30 | $ 0.23 | $ 0.85 | $ 0.65 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Line of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity | $ 175,000 | |
Outstanding borrowings | 0 | $ 0 |
Letter of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity | 75,000 | |
Swingline Credit Facility [Member] | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity | $ 25,000 |
UNEARNED REVENUE (Details)
UNEARNED REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 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 | 134,527 | 140,019 | |||
Recognition of unearned revenue | $ 39,000 | $ 36,300 | 117,297 | $ 101,700 | 128,728 |
Balance, end of period | 134,844 | 134,844 | 117,614 | ||
Long-term unearned revenue | $ 10,900 | $ 10,900 | $ 8,600 | ||
Long-term unearned revenue, recognition period (or less) | 5 years |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payment of dividends | $ 91,677 | $ 75,182 | |||
Dividends paid (in dollars per share) | $ 0.14 | $ 0.12 | $ 0.42 | $ 0.35 | |
Number of shares repurchased (in shares) | 0 | 0 | |||
Repurchase of common stock | $ 200 | $ 500 | $ 9,533 | $ 8,200 | $ 8,246 |
Common stock reserved for issuance (in shares) | 6,000,000 | 6,000,000 | |||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 43,200 | $ 43,200 | $ 32,900 | ||
Unrecognized compensation cost, period for recognition | 4 years 1 month 6 days | 3 years 10 months 24 days |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - Time Lapse Restricted Shares and Restricted Stock Units - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense | $ 3,660 | $ 3,049 | $ 10,030 | $ 9,406 |
Tax benefit | (947) | (1,180) | (2,455) | (3,640) |
Restricted stock expense, net of tax | $ 2,713 | $ 1,869 | $ 7,575 | $ 5,766 |
STOCKHOLDERS' EQUITY (Details 2
STOCKHOLDERS' EQUITY (Details 2) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 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 | 2,017,000 |
Forfeited (in shares) | shares | (19,000) |
Vested (in shares) | shares | (603,000) |
Granted (in shares) | shares | 428,000 |
Unvested Restricted Stock, Ending Balance (in shares) | shares | 1,823,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Unvested Restricted Stock, Beginning Balance (in dollars per share) | $ / shares | $ 24.49 |
Forfeited (in dollars per share) | $ / shares | 26.83 |
Vested (in dollars per share) | $ / shares | 19.40 |
Granted (in dollars per share) | $ / shares | 48.36 |
Unvested Restricted Stock, Ending Balance (in dollars per share) | $ / shares | $ 31.63 |
PENSION AND POST RETIREMENT B_3
PENSION AND POST RETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Interest and service cost | $ 1,995 | $ 2,138 | $ 5,985 | $ 6,414 |
Expected return on plan assets | (3,443) | (3,342) | (10,329) | (10,026) |
Amortization of net loss | 826 | 830 | 2,478 | 2,490 |
Net periodic benefit | $ (622) | $ (374) | $ (1,866) | $ (1,122) |
PENSION AND POST RETIREMENT B_4
PENSION AND POST RETIREMENT BENEFIT PLANS (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Company contributions to defined benefit plan | $ 0 | $ 0 | $ 0 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 365,480 | $ 346,514 |
Major Classes of Assets and Liabilities acquired [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 3,422 | |
Current assets | 555 | |
Equipment and property | 6,790 | |
Goodwill | 21,055 | |
Customer contracts and other intangible assets | 66,738 | |
Current liabilities | (19,011) | |
Other assets and liabilities, net | (2,535) | |
Total consideration paid | 77,014 | |
Less: Contingent consideration liability | (5,229) | |
Total cash purchase price | $ 71,785 |
BUSINESS COMBINATIONS (Details
BUSINESS COMBINATIONS (Details 2) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 250,914 | |
Internet Domain Names [Member] | ||
Business Acquisition [Line Items] | ||
Carrying Value, indefinite-lived intangible assets | 2,227 | |
Customer Contracts [Member] | ||
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 185,477 | $ 152,900 |
Customer Contracts [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 3 years | |
Customer Contracts [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 12 years | |
Trademarks and Trade Names [Member] | ||
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 53,850 | 50,000 |
Trademarks and Trade Names [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 0 years | |
Trademarks and Trade Names [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 20 years | |
Noncompete Agreements [Member] | ||
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 4,658 | |
Noncompete Agreements [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 3 years | |
Noncompete Agreements [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 20 years | |
Patents [Member] | ||
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 2,137 | |
Patents [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 3 years | |
Patents [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Useful Life in Years | 15 years | |
Other Assets | ||
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 2,565 | |
Useful Life in Years | 10 years | |
Other Intangible Assets [Member] | ||
Business Acquisition [Line Items] | ||
Carrying Value, finite-lived intangible assets | $ 11,600 | $ 11,600 |
BUSINESS COMBINATIONS (Detail_2
BUSINESS COMBINATIONS (Details Narrative) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)acquisition | Dec. 31, 2017USD ($)acquisition | |
Business Acquisition [Line Items] | ||
Number of acquisitions | acquisition | 32 | 23 |
Carrying amount of goodwill | $ 365,480 | $ 346,514 |
Carrying amount of goodwill in foreign countries | 52,800 | 46,300 |
Finite-lived intangible assets, net | 250,914 | |
Trademarks and Trade Names [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets, net | 53,850 | 50,000 |
Trademarks and Trade Names [Member] | Non-US [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets, net | 3,300 | 1,700 |
Other Intangible Assets [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets, net | 11,600 | 11,600 |
Other Intangible Assets [Member] | Non-US [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets, net | $ 1,900 | $ 1,700 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) $ in Thousands | Sep. 30, 2018USD ($)derivative_instrument |
Derivative [Line Items] | |
Number of Instruments | derivative_instrument | 18 |
Buy Notional | $ 5,566 |
Sell CAD/Buy USD Fwd Contract [Member] | |
Derivative [Line Items] | |
Number of Instruments | derivative_instrument | 8 |
Sell Notional | $ 1,050 |
Buy Notional | $ 780 |
Sell AUD/Buy USD Fwd Contract [Member] | |
Derivative [Line Items] | |
Number of Instruments | derivative_instrument | 10 |
Sell Notional | $ 6,200 |
Buy Notional | $ 4,786 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivatives Asset | $ 32 | |
Derivative Liabilities | 41 | (70) |
Sell AUD/Buy USD Fwd Contract [Member] | ||
Derivative [Line Items] | ||
Derivatives Asset | 22 | |
Derivative Liabilities | 2 | (9) |
Sell CAD/Buy USD Fwd Contract [Member] | ||
Derivative [Line Items] | ||
Derivatives Asset | 10 | |
Derivative Liabilities | $ 39 | $ (61) |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income | $ (72) | $ (235) | $ 225 | $ (348) |
Sell AUD/Buy USD Fwd Contract [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income | 9 | (11) | 47 | (29) |
Sell CAD/Buy USD Fwd Contract [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income | $ (81) | $ (224) | $ 178 | $ (319) |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 4) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Assets | |||
Derivative Financial Instruments | $ 32 | ||
Liabilities | |||
Derivative Financial Instruments | (41) | $ 70 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Derivative Financial Instruments | 32 | $ 0 | |
Liabilities | |||
Derivative Financial Instruments | (41) | (153) | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Derivative Financial Instruments | 0 | 0 | |
Liabilities | |||
Derivative Financial Instruments | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Derivative Financial Instruments | 32 | 0 | |
Liabilities | |||
Derivative Financial Instruments | (41) | (153) | |
Fair value of derivatives, net | 9 | ||
Obligation to return cash | 9 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Derivative Financial Instruments | 0 | 0 | |
Liabilities | |||
Derivative Financial Instruments | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] | Oct. 23, 2018$ / shares |
Subsequent Event [Line Items] | |
Quarterly dividend declared (in dollars per share) | $ 0.14 |
Special Year end Dividend Declared (in dollars per share) | $ 0.14 |