Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFIT PLANS (Tables)

v3.19.3.a.u2
EMPLOYEE BENEFIT PLANS (Tables)
12 Months Ended
Dec. 31, 2019
Employee Benefit Plans  
The funded status of the Plans and the net amount recognized in the statement of financial position

The Company currently uses December 31 as the measurement date for its defined benefit post-retirement plans. The funded status of the Plans and the net amount recognized in the statement of financial position are summarized as follows as of:

EMPLOYEE BENEFIT PLANS
December 31,   2019     2018  
(in thousands)            
CHANGE IN ACCUMULATED BENEFIT OBLIGATION                
Accumulated benefit obligation at beginning of year   $ 208,425     $ 202,310  
Service cost           37  
Interest cost     4,804       7,926  
Actuarial (gain)/loss     (4,156 )     11,175  
Benefits paid     (8,000 )     (13,023 )
Settlement     (198,255 )      
Accumulated Benefit obligation at end of year     2,818       208,425  
CHANGE IN PLAN ASSETS                
Fair value of assets at beginning of year     213,699       219,905  
Settlement     (198,255 )      
Actual return on assets     27,064       6,817  
Employer contributions     144        
Rollins 401(k) funding     (11,049 )      
Benefits paid     (8,000 )     (13,023 )
Fair value of plan assets at end of year     23,603       213,699  
Funded status   $ 20,785     $ 5,274  
Schedule of Amounts Recognized in Balance Sheet [Table Text Block]

Amounts Recognized in the Statement of Financial Position consist of:
Amounts Recognized in the Statement of Financial Position consist of:          
December 31,   2019     2018  
(in thousands)            
Assets:                
Benefit plan assets   $ 21,565     $  
Prepaid pension           5,274  
Liabilities:                
Long-term accrued liabilities   $ 780     $  
Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block]

Amounts Recognized in the Accumulated Other Comprehensive Income consist of:
                 
Amounts Recognized in the Accumulated Other Comprehensive Income consist of:                
December 31,   2019     2018  
(in thousands)                
Net Actuarial Loss   $ 912     $ 76,362  
weighted-average assumptions were used to determine the accumulated benefit obligation and net benefit cost

The following weighted-average assumptions were used to determine the accumulated benefit obligation and net benefit cost:

EMPLOYEE BENEFIT PLANS (Details 4)
                   
December 31,   2019     2018     2017  
ACCUMULATED BENEFIT OBLIGATION                        
Discount rate     3.65      4.00 %*     4.00 %
Rate of compensation increase      N/A        N/A        N/A  
NET BENEFIT COST                        
Discount rate     4.70 %     4.05 %     4.45 %
Expected return on plan assets     7.00 %     7.00 %     7.00 %
Rate of compensation increase      N/A        N/A        N/A  
components of net periodic benefit cost

The components of net periodic benefit cost are summarized as follows:

EMPLOYEE BENEFIT PLANS (Details 5)
                   
Years ended December 31,   2019     2018     2017  
(in thousands)                  
Service cost   $     $ 37     $ 58  
Interest cost     4,805       7,926       8,493  
Expected return on plan assets     (6,149 )     (13,775 )     (13,368 )
Amortization of net loss     2,396       3,292       3,322  
Preliminary net periodic benefit cost/(income)     1,052       (2,520 )     (1,495 )
Settlement expense     46,419             53  
Net periodic benefit cost/(income)     47,471       (2,520 )     (1,442 )
                         
benefit obligations recognized in other comprehensive income

The benefit obligations recognized in other comprehensive income for the years ended December 31, 2019, 2018, and 2017 are summarized as follows :

EMPLOYEE BENEFIT PLANS (Details 6)
                   
Years ended December 31,   2019     2018     2017  
(in thousands)                  
Pretax (income)/loss   $ (26,634 )   $ 18,056     $ (15,597 )
Amortization of net loss     (2,396 )     (3,292 )     (3,322 )
Settlement expense     (46,419 )           (53 )
Total recognized in other comprehensive income   $ (75,449 )   $ 14,764     $ (18,972 )
Plans' weighted average asset allocation

The Plans' weighted average asset allocation at December 31, 2019 and 2018 by asset category, along with the target allocation for 2018, are as follows:

EMPLOYEE BENEFIT PLANS (Details 7)
                   
    Target
Allocations for
  Percentage of plan assets
as of December 31,
 
Asset category   2020   2019   2018  
Cash and cash equivalents   0.0% - 100.0 %  72.3 % 3.5 % 
Equity securities - Rollins stock   0.0%   - 40.0 %  0.0 % 0.4 %
Domestic equity - all other   0.0% - 40.0 %  3.8 % 0.7 %
International equity   0.0% - 30.0 %  1.9 % 0.2 %
Debt securities - core fixed income   0.0% - 100.0 %  2.1 %  91.1 %
Real estate   0.0% - 20.0 %  9.5 %  2.0 %
Alternative/Opportunistic/Special   0.0% - 20.0 %  10.4 % 2.1 %
Total   0.0% - 100.0 %  100.0 %  100.0 %
assets using the fair value hierarchy

The following table presents our plan assets using the fair value hierarchy as of December 31, 2019. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. See Note 8 for a brief description of the three levels under the fair value hierarchy.

EMPLOYEE BENEFIT PLANS (Details 8)
(in thousands)   Level 1     Level 2     NAV     Total  
(1) Cash and cash equivalents   $ 17,071     $     $     $ 17,071  
(2) Fixed income securities           499             499  
      Domestic equity securities           899             899  
(3) International equity securities           437             437  
(4) Real estate                 2,235       2,235  
(5) Alternative/opportunistic/special                 2,462       2,462  
Total   $ 17,071     $ 1,835     $ 4,697     $ 23,603  
estimated future benefit payments

The estimated future benefit payments over the next five years are as follows:

EMPLOYEE BENEFIT PLANS (Details 9)
(in thousands)        
2020   $ 69  
2021     76  
2022     84  
2023     90  
2024     110  
Thereafter     694  
Total   $ 1,123  
estimated life insurance premium payments

The estimated life insurance premium payments over the next five years are as follows:

EMPLOYEE BENEFIT PLANS (Details 10)
(in thousands)      
2020   $ 108  
2021     1,550  
2022     1,665  
2023     1,906  
2024     2,417  
Total   $ 7,646  
non-qualified deferred compensation plan assets using the fair value hierarchy

The following table presents our non-qualified deferred compensation plan assets using the fair value hierarchy as of December 31, 2019 and 2018.

EMPLOYEE BENEFIT PLANS (Details 11)
(in thousands)   Level 1     Level 2     Level 3     Total  
December 31, 2019   $ 71     $     $ 22,158     $ 22,229  
December 31, 2018   $ 148     $     $ 18,267     $ 18,415