UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
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x | ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2024
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o | TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] |
For the transition period from ____________ to ____________
Commission file number 1-4422
A.Full title of the plan and address of the plan, if different from that of issuer named below:
ROLLINS, INC.
ROLLINS 401(k) SAVINGS PLAN
B.Name of issuer of the securities held pursuant to the plan and the address of its principal executive offices:
ROLLINS, INC.
2170 PIEDMONT ROAD, N.E.
ATLANTA, GA 30324
Rollins 401(k) Savings Plan
Financial Statements and Supplemental Schedules
As of December 31, 2024 and 2023
Contents
| | | | | |
| Reports of Independent Registered Public Accounting Firms | |
| |
| Financial Statements: | |
| |
Statements of Net Assets Available for Benefits as of December 31, 2024 and 2023 | |
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2024 | |
| Notes to Financial Statements | |
| |
| Supplemental Schedules: | |
Form 5500, Schedule H, Part IV, Line 4i, Schedule of Assets as of December 31, 2024 | |
Form 5500, Schedule H, Part IV, Line 4a, Schedule of Delinquent Participant Contributions for the year ended December 31, 2024 | |
| Signatures | |
| Index of Exhibits | |
Note: All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Plan Participants and Plan Administrator of
Rollins 401(k) Savings Plan
Opinion on the Financial Statements
We have audited the accompanying statement of net assets available for benefits of Rollins 401(k) Savings Plan (the "Plan") as of December 31, 2024, the related statement of changes in net assets available for benefits for the year ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2024, and the changes in net assets available for benefits for the year ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on the Plan's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
Report on Supplemental Schedules
The Supplemental Schedule of Assets (Held at End of Year) as of December 31, 2024 and Schedule of Delinquent Participant Contributions for the Year Ended December 31, 2024 have been subjected to audit procedures performed in conjunction with the audit of the Plan's financial statements. The supplemental schedules are the responsibility of the Plan's management. Our audit procedures included determining whether the supplemental schedules reconcile to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedules. In forming our opinion on the supplemental schedules, we evaluated whether the supplemental schedules, including their form and content, are presented in compliance with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, such schedules are fairly stated, in all material respects, in relation to the financial statements as a whole.
/s/ Deloitte & Touche LLP
Atlanta, Georgia
June 27, 2025
We have served as the auditor of the Plan since 2025.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PREDECESSOR AUDITOR)
To the Administrative Committee, the Plan Administrator and Participants of the
Rollins 401(k) Savings Plan
Opinion on the Financial Statements
We have audited the accompanying statement of net assets available for benefits of the Rollins 401(k) Savings Plan (the Plan) as of December 31, 2023, and the related statement of changes in net assets available for benefits for the year then ended, and the related notes and schedules (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2023, and the changes in net assets available for benefits for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risk of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
/s/ Windham Brannon, LLC
We served as the Plan’s auditor from 2007-2024.
Atlanta, Georgia
June 27, 2024
Rollins 401(k) Savings Plan
Statements of Net Assets Available for Benefits
December 31, 2024 and 2023
| | | | | | | | | | | |
| 2024 | | 2023 |
| ASSETS | | | |
| Cash | $ | 6,160,429 | | | $ | — | |
| INVESTMENTS: | | | |
| Investments at fair value (Note 3) | 963,556,785 | | | 931,579,902 | |
| Investment at contract value (Note 4) | 155,031,454 | | | 161,382,508 | |
| Total Investments | 1,118,588,239 | | | 1,092,962,410 | |
| RECEIVABLES: | | | |
| Employer contributions | 1,264,317 | | | 1,001,733 | |
| Employee contributions | 634,849 | | | 437,901 | |
| Notes receivable from participants | 21,442,669 | | | 19,289,277 | |
| Total Receivables | 23,341,835 | | | 20,728,911 | |
| | | |
| NET ASSETS AVAILABLE FOR BENEFITS | $ | 1,148,090,503 | | | $ | 1,113,691,321 | |
The accompanying notes are an integral part of these financial statements.
Rollins 401(k) Savings Plan
Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 2024
| | | | | |
| ADDITIONS | |
| Additions to net assets attributed to: | |
| Investment income: | |
| Net appreciation in fair value of investments | $ | 84,933,614 | |
| |
| Dividend and interest income | 13,698,579 | |
| Total investment income | 98,632,193 | |
| |
| Interest income on notes receivable from participants | 1,667,714 | |
| Contributions: | |
| Employer, net of forfeitures | 32,565,274 | |
| Participants | 50,455,222 | |
| Rollovers | 5,336,751 | |
| 88,357,247 | |
| Total Additions | 188,657,154 | |
| |
| DEDUCTIONS | |
| Deductions from net assets attributed to: | |
| Benefits paid to participants | 159,008,283 | |
| Administrative expenses | 1,410,118 | |
| Total deductions | 160,418,401 | |
| Net increase in net assets before plan transfers | 28,238,753 | |
| |
| Transfers from plan merger (Note 1) | 6,160,429 | |
| |
| Net increase | 34,399,182 | |
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| NET ASSETS AVAILABLE FOR BENEFITS: | |
| BEGINNING OF YEAR | 1,113,691,321 | |
| END OF YEAR | $ | 1,148,090,503 | |
The accompanying notes are an integral part of these financial statements.
Rollins 401(k) Savings Plan
Notes to Financial Statements
December 31, 2024 and 2023
Notes to Financial Statements
1. DESCRIPTION OF PLAN
The following brief description of the Rollins 401(k) Savings Plan (the “Plan”) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.
General
The Plan, as amended and restated, is a defined contribution plan covering all eligible employees of Rollins, Inc. (the “Company” or “Administrator”) and its subsidiaries that are eligible to participate in the Plan. The exceptions are for those who are members of a collective bargaining unit, who are not eligible to participate in the Plan under the terms of the applicable collective bargaining agreement, and employees of PCO Services, Inc. (the Company’s Canadian subsidiary). The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended.
The Plan has designated the Plan investment fund invested primarily in Rollins, Inc. common stock as an employee stock ownership plan within the meaning of Section 4975(e)(7) of the Internal Revenue Code (the “Code”). The administrative committee may allow participants to elect to receive dividends on Rollins, Inc. common stock in cash as taxable compensation or to have such dividends paid to the Plan and reinvested in Rollins, Inc. common stock with taxes deferred. Participants may exercise voting, tendering and similar rights with respect to shares of Rollins, Inc. common stock held in their accounts under the Plan document.
Effective December 31, 2024, the Fox Pest Control 401(k) Plan was merged into the Plan. In connection with the merger, plan assets of $6,160,429 were transferred to the Plan and are reflected as “Transfers from plan merger” on the statement of changes in net assets available for benefits.
Eligibility
Most employees are eligible to make employee contributions to the Plan on the first day of the calendar quarter that coincides with or next follows the date on which they complete three months of service. Generally, participants are eligible to receive matching contributions at the same time they are eligible to make employee contributions to the Plan.
The Company may establish different eligibility requirements and enrollment procedures with respect to employees who are employed as a result of a corporate transaction.
Contributions
Contributions to the Plan include (i) salary reduction contributions authorized by participants, (ii) matching contributions made by the Company, (iii) discretionary contributions made by the Company; and (iv) participant rollovers from another qualified plan. Participants have the option to make Roth elective salary reduction contributions to the plan.
Eligible employees are automatically enrolled in the Plan, and pre-tax contributions are withheld at 3% of eligible compensation (4% effective January 1, 2025) unless the employee elects differently. Participants may contribute from 1% to 75% of their compensation to the Plan via payroll deductions, except for highly compensated employees who may contribute from 1% to 8.5% of their compensation. Contributions by participants are not to exceed the annual maximum limitations of the Code, which for 2024 was $23,000. Participants age 50 or older may also make additional “catch-up” contributions limited to $7,500 in 2024.
Rollins 401(k) Savings Plan
Notes to Financial Statements
December 31, 2024 and 2023
Generally, the Company matches contributions dollar for dollar on the first 3% and 50 cents for every dollar on the next 3% a participant contributes of eligible compensation. The Company matching contribution is made every payroll period, and following each Plan year, the Company will make a “true-up” matching contribution calculated under the same formula as the payroll period match but determined on an annual basis and reduced by the payroll period matching contributions received by the participant during the year. To be eligible for a true-up matching contribution, a participant must be employed on the last day of the year or be receiving severance and not designated on the payroll system as having been terminated as of the last day of the Plan year.
For the year ended December 31, 2024, the Company contributed $32,565,274 in matching contributions, net of forfeitures.
Participant Accounts
Individual accounts are maintained for each participant of the Plan. Each participant’s account is credited with the participant’s contributions, rollovers, the Company’s contributions and earnings on the investments in their account and is charged with certain administrative expenses, participant withdrawals and losses on the investments in their account. Participants direct the investment of their contributions and the Company’s contribution into various investment options offered by the Plan. Participants may change their investment options on a daily basis. The default investment fund is selected by the Plan administrator. The Plan administrator has elected GoalMaker (an asset allocation model based on the participant’s expected retirement date which includes various fund options offered by the Plan) as the default investment option. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
Notes Receivable from Participants
Participants may borrow from their accounts for loans up to the lesser of 50% of the individual participant’s vested account balance of employee contributions plus actual earnings thereon or $50,000. Principal and interest are paid ratably through payroll deductions. Loan terms range from 1 to 25 years. Participant loans are secured by the balance in the participant’s account and bear interest at a rate equal to prime plus 2%. Interest rates are updated quarterly. The update takes place on the last business day of the calendar quarter effective for loans made on or after the first business day of the subsequent quarter. Interest rates on outstanding loans as of December 31, 2024 ranged from 3.22% to 10.50%. Participants may only have one loan outstanding at a time.
Vesting
Participants are vested immediately in their contributions plus actual earnings thereon. Participants who previously participated in predecessor plans may be subject to different vesting schedules than those outlined below. Generally, active participants currently vest in Company matching contributions plus actual earnings thereon based on the following schedule:
| | | | | |
| Vested Percentage |
| Years of service: | |
| Less than one | 0 | % |
| One, but less than two | 20 | % |
| Two, but less than three | 40 | % |
| Three, but less than four | 60 | % |
| Four, but less than five | 80 | % |
| Five or more | 100 | % |
Rollins 401(k) Savings Plan
Notes to Financial Statements
December 31, 2024 and 2023
Forfeitures
When certain terminations of participation in the Plan occur, the nonvested portion of the participant’s account, as defined by the Plan, represents a forfeiture. Forfeited non-vested accounts are used to reduce employer contributions or to pay administrative expenses. Total forfeitures used to reduce employer contributions were $2,884,589 in 2024. Forfeited non-vested, unallocated accounts were $47,050 and $62,022 at December 31, 2024 and 2023, respectively.
Payment of Benefits
Upon retirement, death, total and permanent disability, or termination for any reason, the participant or their beneficiary may receive the total value of their vested account in either a lump sum distribution, a rollover of assets into another qualified plan, or in systematic distributions.
A participant may also elect to withdraw all or a portion of his or her account at any time through hardship provisions as defined by the Code and subject to approval by the Company.
The Plan provides that if an employee terminates employment and their vested account balance in the Plan is more than $1,000 but not more than $5,000 ($7,000 effective October 1, 2024), and they do not elect either to receive or roll over a single lump-sum payment, their account will be rolled over into an Individual Retirement Account (“IRA”).
Participants who are active employees may withdraw all or a part of their accounts, including the Company matching contributions, upon reaching age 59 1/2 or upon becoming disabled.
Administrative Expenses
Administrative expenses of the Plan are paid by the Plan or the Plan sponsor, as provided in the Plan document. All investment transaction fees and recordkeeping fees are paid by participants through a per-participant charge. Advisory, audit and other fees not covered by the per-participant charge are paid with revenue-sharing amounts, with any excess amounts returned to the Plan to pay for Plan expenses. The Company paid all other administrative expenses of the Plan during 2024. The Company does not expect reimbursement from the Plan.
Plan Termination
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan, subject to the provisions of ERISA. In the event of Plan termination, participants would become 100% vested in their accounts.
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The financial statements of the Plan are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States.
Investments held by a defined contribution plan are required to be reported at fair value, except for the fully benefit-responsive investment contract. Contract value is the relevant measure for the portion of the net assets available for benefits of a defined contribution plan attributable to the fully benefit-responsive investment contract because contract value is the amount participants normally would receive if they were to initiate permitted transactions under the terms of the Plan.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires the Plan’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes in those assets and liabilities, and disclosures of contingent assets and liabilities. Actual results could differ from those estimates.
Rollins 401(k) Savings Plan
Notes to Financial Statements
December 31, 2024 and 2023
Investment Valuation and Income Recognition
Investments are reported at fair value (except for the fully benefit-responsive investment contract, which is reported at contract value). Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Plan’s administrative committee determines the Plan’s valuation policies utilizing information provided by the investment advisers, custodians, and insurance company. See Note 3 for discussion of fair value measurements.
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes the Plan’s gains and losses on investments purchased and sold as well as held during the year.
Notes Receivable from Participants
Notes receivable from participants are carried at their unpaid principal balance. Interest income is recognized when received, primarily per pay period. Participant notes receivable that are 90 days past due are considered delinquent and recorded as distributions based on the terms of the Plan agreement.
Payment of Benefits
Benefit payments are recorded when paid. There is no hold period for participants who elect to withdraw from the Plan to receive their funds. There were no participants, who elected to withdraw from the Plan, but had not yet been paid at December 31, 2024.
Risks and Uncertainties
The Plan provides various investment options to its participants. Investment securities, in general, are exposed to various risks, such as interest rate risk, credit risk, and overall market volatility. Market risks include global events which could impact the value of investment securities, such as a pandemic or international conflict. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such change could materially affect the value of the participants’ account balances and the amounts reported in the financial statements.
Concentrations of Investments
Included in investments at December 31, 2024 and 2023, are shares of the Company’s common stock of $317,549,115 and $337,911,434, respectively. This investment represents 28 percent and 31 percent of total investments at December 31, 2024 and 2023, respectively. A significant decline in the market value of the Company’s stock would significantly affect the net assets available for benefits. The Plan’s exposure to credit risk and additional market risk is limited by the diversification of investments across multiple participant-directed fund elections, which are further diversified into varied financial instruments.
Rollins 401(k) Savings Plan
Notes to Financial Statements
December 31, 2024 and 2023
3.FAIR VALUE MEASUREMENTS
ASC 820, Fair Value Measurements and Disclosures, provides a framework for measuring fair value. Fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The three levels of the fair value hierarchy are described as follows:
| | | | | |
| Level 1 | Quoted prices in active markets that the Plan has ability to access for identical assets or liabilities |
| |
| Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities |
| |
| Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities |
Asset Valuation Techniques - Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The following describes the valuation methodologies used for assets measured at fair value:
Mutual funds and common stock – These investments consist of various publicly-traded mutual funds and the Company’s common stock. These investments are valued at the closing price reported on the active market on which the individual securities are traded.
Pooled separate accounts – As of December 31, 2024, these investments were valued by using the net asset value of the funds at year-end as a practical expedient. The net asset value (NAV) is not a publicly‑quoted price in an active market and is determined based upon the fair value of the underlying investments. The accounts have no unfunded commitment and redemption restrictions as participant transactions may occur daily. As of December 31, 2023, these investments were traded and valued daily using their NAV at levels 1 and 2.
Rollins 401(k) Savings Plan
Notes to Financial Statements
December 31, 2024 and 2023
Fair value information for investments that are measured on a recurring basis was as follows at December 31, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | | | | |
| Fair Value Measurements at December 31, 2024 |
| Level 1 | | Level 2 | | Level 3 | | Total |
| | | | | | | |
| Mutual Funds | $ | 414,659,871 | | | $ | — | | | $ | — | | | $ | 414,659,871 | |
| Rollins Inc. Common Stock | 317,549,115 | | | — | | | — | | | 317,549,115 | |
| Total investments in fair value hierarchy | 732,208,986 | | | — | | | — | | | 732,208,986 | |
| | | | | | | |
Investments measured at net asset value(1)(2) | | | | | | | 231,347,799 | |
| | | | | | | |
| Total Investments, at fair value | | | | | | | $ | 963,556,785 | |
| | | | | | | |
(1) In accordance with ASC 820-10, investments that were measured at net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the statement of net assets available for benefits. |
| | | | | | | |
(2) The Capital Group EuroPacific Growth Pooled Separate Account wholly invests in the Capital Group EuroPacific Growth Trust, a common collective trust, which aims to provide long-term growth of capital by investing in attractively valued companies in developed and emerging markets that are positioned to benefit from innovation, economic growth, increasing consumer demand, or a turnaround in business conditions. Other pooled separate accounts are direct filing entities. |
| | | | | | | | | | | | | | | | | | | | | | | |
| Fair Value Measurements at December 31, 2023 |
| Level 1 | | Level 2 | | Level 3 | | Total |
| | | | | | | |
| Mutual Funds | $ | 388,139,785 | | | $ | — | | | $ | — | | | $ | 388,139,785 | |
| Pooled Separate Accounts | 136,703,732 | | | 68,824,951 | | | — | | | 205,528,683 | |
| Rollins Inc. Common Stock | 337,911,434 | | | — | | | — | | | 337,911,434 | |
| Total Investments, at fair value | 862,754,951 | | | 68,824,951 | | | — | | | 931,579,902 | |
4. FULLY BENEFIT-RESPONSIVE INVESTMENT CONTRACT
The Plan holds a synthetic guaranteed investment contract (“GIC”), which meets the fully benefit-responsive investment contract criteria and therefore is reported at contract value. Contract value is the relevant measure for fully benefit-responsive investment contracts because this is the amount received by participants if they were to initiate permitted transactions under the terms of the Plan.
Contract value represents contributions made under the contract, plus earnings, less participant withdrawals, and administrative expenses.
The synthetic GIC is a wrapper contract paired with underlying investments which are owned by the Plan. The underlying investment consists of a common collective trust fund, which invests in high-quality, intermediate fixed income securities. The wrapper contract represents an agreement for the wrap issuer, such as a bank or insurance company, to make payments to the Plan in certain circumstances. The wrapper contract typically includes certain conditions and limitations on the underlying assets owned by the Plan and provides a guarantee that the credit rate
Rollins 401(k) Savings Plan
Notes to Financial Statements
December 31, 2024 and 2023
will not fall below 0%. Cash flow volatility (for example, timing of benefit payments) as well as asset underperformance can be passed through to the Plan through adjustments to future contract crediting rates. Formulas are provided in the contract using an explicit formula that adjusts renewal crediting rates to recognize the difference between the fair value and the book value of the underlying assets. Crediting rates are reviewed semi annually for resetting. The Plan’s ability to receive amounts due in accordance with fully benefit-responsive investment contract is dependent on the third-party issuer’s ability to meet its financial obligations. The issuer’s ability to meet its contractual obligations may be affected by future economic and regulatory developments.
There are no reserves against the contract value for credit risk.
Certain events, such as Plan termination, Plan merger, failure of the Plan to maintain tax- exempt status, or material breach of contract, might limit the ability of the Plan to transact at contract value with the contract issuer or allow the issuer to terminate the contract with the Plan and settle at an amount different from contract value. No events are probable of occurring that might limit the ability of the Plan to transact at contract value with the contract issuer and that also would limit the ability of the Plan to transact at contract value with the Plan participants.
The synthetic GIC is directly managed by Empower Annuity Insurance Company (EAIC).
5. FEDERAL INCOME TAX STATUS
The Plan obtained its latest determination letter on February 17, 2016, in which the Internal Revenue Service (“IRS”) determined that the Plan’s terms at the time of the determination letter application were in compliance with applicable requirements of the IRC and therefore, is exempt from taxation. In December 2016, the IRS began publishing a Required Amendments List (“List”) for individually designed plans that specifies changes in qualification requirements. The List is published annually and requires plans to be amended for each item on the List, as applicable, to retain their tax exempt status. The Plan has been amended since receiving the determination letter, however, the Plan administrator believes the Plan is currently designed and being operated in compliance with applicable requirements of the IRC. Therefore, no provision of income taxes has been included in the Plan’s financial statements.
6. RELATED PARTY TRANSACTIONS AND EXEMPT PARTY-IN-INTEREST TRANSACTIONS
At December 31, 2024 the Plan held approximately 6.8 million shares of Rollins, Inc. common stock; whereas at December 31, 2023 the Plan held approximately 7.7 million shares of Rollins, Inc. common stock. The fair value of the Plan’s investment in Rollins, Inc. common stock at December 31, 2024 and 2023 was $317,549,115 and $337,911,434, respectively. During 2024, the Plan received approximately $4,450,242 in dividends on Rollins, Inc. common stock, which was used to purchase additional shares of that stock.
At December 31, 2024 and 2023, the Plan investments include a synthetic GIC that is directly managed by EAIC, a service provider for the Plan. Additionally, at December 31, 2024 and 2023, the Plan investments include pooled separate accounts that are directly managed by EAIC. Transactions in these securities qualify as party-in-interest transactions.
The Plan also issues loans to participants, which are secured by the vested balances in the participants’ accounts.
The administrative expenses that are paid to service providers of the Plan represent party-in-interest transactions.
7. NONEXEMPT PARTY-IN-INTEREST
During the years ended December 31, 2023 and 2022, the Fox Pest Control 401(k) Plan remitted participant contributions of $141,369 and $110,383, respectively, to the custodians of plan assets later than required by Department of Labor (DOL) Regulation 2510.3-102. The 2023 and 2022 participant contributions have not been corrected.
Rollins 401(k) Savings Plan
Notes to Financial Statements
December 31, 2024 and 2023
8. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500 as of December 31, 2024 and 2023:
| | | | | | | | | | | |
| 2024 | | 2023 |
| Total net assets available for benefits per the financial statements | $ | 1,148,090,503 | | | $ | 1,113,691,321 | |
| Less: current year employer and employee receivables | (1,899,166) | | | (1,439,634) | |
| Total net assets available for benefits per the Form 5500 | $ | 1,146,191,337 | | | $ | 1,112,251,687 | |
The following is a reconciliation of the total increase in net assets available for benefits per the financial statements to the Form 5500 for the year ended December 31, 2024:
| | | | | |
| 2024 |
| Net increase in net assets before Plan transfers per the financial statements | $ | 28,238,753 | |
| Less: current year employer and employee receivables | (1,899,166) | |
| Add: prior year employer and employee receivables | 1,439,634 | |
| Increase in net assets available for benefits per the Form 5500 | $ | 27,779,221 | |
Supplemental Schedules
ROLLINS 401(k) SAVINGS PLAN
EIN: 51-0068479 Plan No: 002
FORM 5500, SCHEDULE H, Part IV, LINE 4i
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December 31, 2024
| | | | | | | | | | | |
| (a) | (b) | (c) | (e) |
| Identity of Issue,
Borrower,
Lessor, or Similar Party | Description of
Investment | Current Value ** |
|
|
| Investments at Fair Value: | |
| Mutual Funds | | |
| American Funds | American Funds Capital World Growth and Income Fund Class R-6 | $ | 11,936,098 | |
| American Funds | American Funds American Balanced Fund Class R-6 | 32,761,518 | |
| Blackrock | BlackRock Mid-Cap Growth Equity Portfolio Class K | 7,546,383 | |
| Franklin Funds | Franklin Growth Fund Advisor Class | 93,468,300 | |
| T. Rowe Price Funds | T. Rowe Price New Horizons Fund I Class | 51,723,201 | |
| Vanguard Funds | Vanguard Total International Stock Index Fund Admiral Shares | 3,969,784 | |
| Vanguard Funds | Vanguard Explorer Fund Admiral Shares | 487,246 | |
| Vanguard Funds | Vanguard Small Cap Index Fund Admiral Shares | 5,126,455 | |
| Vanguard Funds | Vanguard Mid-Cap Index Fund Admiral Shares | 5,147,823 | |
| Vanguard Funds | Vanguard 500 Index Fund Admiral Shares | 35,515,550 | |
| Vanguard Funds | Vanguard Windsor II Fund Admiral Shares | 99,054,190 | |
| Vanguard Funds | Vanguard Total Bond Market Index Fund Admiral Shares | 3,466,272 | |
| Victory Funds | Victory Sycamore Established Value Fund Class R6 | 64,457,051 | |
| | Total Mutual Funds | 414,659,871 | |
| | | |
| Pooled Separate Accounts | | |
| * | Capital Group Funds | Capital Group EuroPacific Growth Trust | 134,206,343 | |
| * | JP Morgan Funds | Large Cap Growth JPMorgan Investment Management Fund | 31,604,603 | |
| * | Metropolitan West Funds | MetWest Core Plus Bond | 60,809,981 | |
| * | Victory Funds | Small Cap Value Victory Fund | 4,726,872 | |
| | Total Pooled Separate Accounts | 231,347,799 | |
| | | |
| * | Rollins, Inc. | Common Stock | 317,549,115 | |
| | | |
| | Total Investments at Fair Value | 963,556,785 | |
| | | |
| Investments at Contract Value: | |
| Fully Benefit-Responsive Investment Contract | |
| * | Empower Annuity Insurance Company | Wrapper Contract - Other | 12,136,162 | |
| * | Prudential Trust Co. | Prudential Core Intermediate Bond Fund - Common Collective Trust | 142,895,292 | |
| | Total Investments at Contract Value | 155,031,454 | |
| | | |
| * | Participant Loans | Interest rates ranging from 3.22 to 10.50%, maturing 2025 to 2047 | 21,442,669 | |
| | Assets Held at End of Year | $ | 1,140,030,908 | |
| | | |
| * | Indicates a party-in-interest to the Plan. | |
| ** | Cost is not required for participant-directed investments and therefore is not included |
ROLLINS 401(k) SAVINGS PLAN
EIN: 51-0068479 Plan No: 002
FORM 5500, SCHEDULE H, Part IV, LINE 4a
SCHEDULE OF DELINQUENT PARTICIPANT CONTRIBUTIONS
For the Year Ended December 31, 2024
| | | | | | | | | | | | | | |
| | | | |
| Participant Contributions Transferred Late to the Plan | Contributions Not Corrected | Contributions Corrected Outside Voluntary Fiduciary Correction Program (VFCP) | Contributions Pending Correction in VFCP | Total Fully Corrected Under VFCP and Prohibited Transaction Exemption 2002-51 |
|
|
|
|
|
|
| 2022 | $ | 110,383 | | | | |
| 2023 | $ | 141,369 | | | | |
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | | | | |
| | |
| Date: June 27, 2025 | By: | /s/ James C. Benton Jr |
| Name: | James C. Benton Jr |
| Title: | Vice President, Human Resources |
INDEX OF EXHIBITS
| | | | | | | | |
| | |
Exhibit No. | | Description |
| 23.1 | | |
| 23.2 | | |