Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2020
Equity [Abstract]  


During the nine months ended September 30, 2020, the Company paid $91.7 million, or $0.28 per share, in cash dividends compared to $103.1 million, or $0.315 per share, during the same period in 2019.

During the third quarter ended September 30, 2020 and during the same period in 2019, the Company did not repurchase shares on the open market.

The Company repurchases shares from employees for the payment of their taxes on restricted shares that have vested. The Company repurchased $0.0 million and $0.1 million for the quarter ended September 30, 2020 and 2019, respectively and $8.1 million and $9.9 million of common stock during the nine-month period ended September 30, 2020 and 2019, respectively.

As more fully discussed in Note 17 of the Company’s notes to the consolidated financial statements in its 2019 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, 2020, approximately 4.9 million shares of the Company’s common stock were reserved for issuance.

Time Lapse Restricted Shares

The following table summarizes the components of the Company’s stock-based compensation programs recorded as expense:

    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
(in thousands)   2020     2019     2020     2019  
Time lapse restricted stock:                                
Pre-tax compensation expense   $ 10,511     $ 3,305     $ 18,151     $ 10,891  
Tax benefit     (1,180 )     (982 )     (3,117 )     (2,728 )
Restricted stock expense, net of tax   $ 9,331     $ 2,323     $ 15,034     $ 8,163  

According to the Employee Stock Incentive Plan, restricted shares automatically vest upon the death of an employee holding the unvested shares. The increase in pre-tax compensation expense for the quarter and nine months ended September 30, 2020 was the result of the accelerated vesting of unvested restricted shares held by the Company’s Chairman of the Board, R. Randall Rollins, who passed away in August, 2020.


The following table summarizes information on unvested restricted stock outstanding as of September 30, 2020:

(number of shares in thousands)   Number of
    Average Grant-
Date Fair Value
Unvested Restricted Stock at December 31, 2019     2,310     $ 25.84  
Forfeited     (33 )     24.44  
Vested     (923 )     22.89  
Granted     572       36.73  
Unvested Restricted Stock at September 30, 2020     1,926     $ 30.51  

At September 30, 2020 and December 31, 2019, the Company had $43.3 million and $41.3 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 4.0 years.