Rollins, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
OPERATING ACTIVITIES
Net Income	$ 137,664	$ 123,330	$ 111,332
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash charges	43,509	39,571	38,655
Pension Settlement			1,000us-gaap_PensionExpense
Provision for deferred income taxes	8,440us-gaap_DeferredIncomeTaxExpenseBenefit	356us-gaap_DeferredIncomeTaxExpenseBenefit	(1,870)us-gaap_DeferredIncomeTaxExpenseBenefit
Stock based compensation expense	10,579us-gaap_ShareBasedCompensation	10,427us-gaap_ShareBasedCompensation	9,494us-gaap_ShareBasedCompensation
Excess tax benefits from share-based payments	(4,744)	(3,722)	(3,231)
Provision for bad debts	11,197us-gaap_ProvisionForDoubtfulAccounts	10,388us-gaap_ProvisionForDoubtfulAccounts	11,095us-gaap_ProvisionForDoubtfulAccounts
Changes in assets and liabilities:
Trade accounts receivables and other accounts receivables	(13,369)	(13,617)	(16,438)
Financed receivables	(941)	(950)	(1,453)
Materials and supplies	(1,525)us-gaap_IncreaseDecreaseInInventories	(118)us-gaap_IncreaseDecreaseInInventories	(655)us-gaap_IncreaseDecreaseInInventories
Other current assets	(10,678)	(4,613)	(1,469)
Other non-current assets	7,200	(1,343)	286
Accounts payable and accrued expenses	15,273	4,918	(2,175)
Unearned revenue	2,497	3,561	1,935
Accrued insurance	1,274rol_IncreaseDecreaseInAccruedInsurance	(1,572)rol_IncreaseDecreaseInAccruedInsurance	6,087rol_IncreaseDecreaseInAccruedInsurance
Pension funding	(5,250)	(5,000)	(5,203)
Long-term accrued liabilities	(5,748)	1,316	(4,890)
Net cash provided by operating activities	194,146	162,665	141,919
INVESTING ACTIVITIES
Cash used for acquisitions of companies, net of cash acquired	(63,335)	(12,632)	(25,030)
Capital expenditures	(28,739)	(18,632)	(19,040)
Cash from sales of franchises	565	102	322
Proceeds from sales of assets	2,038	372	1,055
Net cash used in investing activities	(89,471)	(30,790)	(42,693)
FINANCING ACTIVITIES
Payment of Dividends	(75,750)us-gaap_PaymentsOfDividendsCommonStock	(65,658)us-gaap_PaymentsOfDividendsCommonStock	(64,282)us-gaap_PaymentsOfDividendsCommonStock
Cash paid for common stock purchased	(35,513)	(13,723)	(19,938)
Excess tax benefits from share-based payments	4,744	3,722	3,231
Proceeds received upon exercise of stock options		6
Net cash used in financing activities	(106,519)	(75,653)	(80,989)
Effect of exchange rate changes on cash	(8,000)	(3,088)	570
Net(decrease) increase in cash and cash equivalents	(9,844)	53,134	18,807
Cash and cash equivalents at beginning of year	118,216	65,082	46,275
Cash and cash equivalents at end of year	108,372	118,216	65,082
Supplemental disclosure of cash flow information
Cash paid for interest
Cash paid for income taxes, net	74,454us-gaap_IncomeTaxesPaidNet	69,354us-gaap_IncomeTaxesPaidNet	62,998us-gaap_IncomeTaxesPaidNet
Supplemental Disclosures of Non-Cash Items
Non-cash (increases) decreases in the minimum pension liability	(41,700)	45,700	(15,400)
Non-cash acquisition of assets in business combinations	$ 24,200	$ 3,300	$ 3,000