Rollins (ROL) 10-Q27 Jul 232023 Q2 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Jul. 17, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	1-4422
Entity Registrant Name	ROLLINS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	51-0068479
Entity Address, Address Line One	2170 Piedmont Road, N.E.
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30324
City Area Code	404
Local Phone Number	888-2000
Title of 12(b) Security	Common Stock
Trading Symbol	ROL
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		492,820,761
Entity Central Index Key	0000084839
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 154,747	$ 95,346
Trade receivables, net of allowance for expected credit losses of $12,739 and $14,073, respectively	176,567	155,759
Financed receivables, short-term, net of allowance for expected credit losses of $2,087 and $1,768, respectively	37,495	33,618
Materials and supplies	32,685	29,745
Other current assets	62,489	34,151
Total current assets	463,983	348,619
Equipment and property, net of accumulated depreciation of $346,886 and $333,298, respectively	123,470	128,046
Goodwill	1,045,997	846,704
Intangible assets, net	563,674	418,748
Operating lease right-of-use assets	282,598	277,355
Financed receivables, long-term, net of allowance for expected credit losses of $3,922 and $3,200, respectively	72,646	63,523
Other assets	46,962	39,033
Total assets	2,599,330	2,122,028
LIABILITIES
Accounts payable	74,398	42,796
Accrued insurance - current	40,796	39,534
Accrued compensation and related liabilities	94,968	99,251
Unearned revenues	183,253	158,092
Operating lease liabilities - current	86,918	84,543
Current portion of long-term debt	0	15,000
Other current liabilities	95,368	54,568
Total current liabilities	575,701	493,784
Accrued insurance, less current portion	45,659	38,350
Operating lease liabilities, less current portion	200,201	196,888
Long-term debt	337,509	39,898
Other long-term accrued liabilities	98,035	85,911
Total liabilities	1,257,105	854,831
Commitments and contingencies (see Note 11)
STOCKHOLDERS’ EQUITY
Preferred stock, without par value; 500,000 shares authorized, zero shares issued	0	0
Common stock, par value $1 per share; 800,000,000 shares authorized, 492,820,761 and 492,447,997 shares issued and outstanding, respectively	492,821	492,448
Additional paid in capital	121,005	119,242
Accumulated other comprehensive loss	(29,051)	(31,562)
Retained earnings	757,450	687,069
Total stockholders’ equity	1,342,225	1,267,197
Total liabilities and stockholders’ equity	2,599,330	2,122,028
Customer contracts, net
ASSETS
Intangible assets, net	407,205	298,559
Trademarks & tradenames, net
ASSETS
Intangible assets, net	148,901	111,646
Other intangible assets, net
ASSETS
Intangible assets, net	$ 7,568	$ 8,543

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Trade receivables, allowance for expected credit losses	$ 12,739	$ 14,073
Financed receivables, allowance for expected credit losses	2,087	1,768
Equipment and property, net of accumulated depreciation	346,886	333,298
Financed receivables, allowance for expected credit losses	$ 3,922	$ 3,200
Preferred stock, shares authorized (in shares)	500,000	500,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in USD per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	800,000,000	800,000,000
Common stock, shares issued (in shares)	492,820,761	492,447,997
Common stock, shares outstanding (in shares)	492,820,761	492,447,997

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
REVENUES
Revenue from Contract with Customer, Product and Service [Extensible Enumeration]	Customer Services [Member]	Customer Services [Member]	Customer Services [Member]	Customer Services [Member]
Customer services	$ 820,750	$ 714,049	$ 1,478,765	$ 1,304,729
COSTS AND EXPENSES
Cost of services provided (exclusive of depreciation and amortization below)	384,191	336,780	711,033	632,158
Sales, general and administrative	255,331	219,987	451,762	398,772
Depreciation and amortization	26,439	22,605	48,941	45,732
Total operating expenses	665,961	579,372	1,211,736	1,076,662
OPERATING INCOME	154,789	134,677	267,029	228,067
Interest expense, net	4,785	880	5,250	1,448
Other income, net	(1,019)	(1,911)	(5,733)	(3,190)
CONSOLIDATED INCOME BEFORE INCOME TAXES	151,023	135,708	267,512	229,809
PROVISION FOR INCOME TAXES	40,880	34,088	69,135	54,423
NET INCOME	$ 110,143	$ 101,620	$ 198,377	$ 175,386
NET INCOME PER SHARE - BASIC (in USD per share)	$ 0.22	$ 0.21	$ 0.40	$ 0.36
NET INCOME PER SHARE - DILUTED (in USD per share)	$ 0.22	$ 0.21	$ 0.40	$ 0.36
Weighted average shares outstanding - basic (in shares)	492,700	492,327	492,593	492,270
Weighted average shares outstanding - diluted (in shares)	492,891	492,440	492,764	492,382
DIVIDENDS PAID PER SHARE (in USD per share)	$ 0.13	$ 0.10	$ 0.26	$ 0.20

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
NET INCOME	$ 110,143	$ 101,620	$ 198,377	$ 175,386
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	2,362	(16,913)	2,459	(13,786)
Unrealized (loss) gain on available for sale securities	(110)	(362)	52	(952)
Other comprehensive income (loss), net of tax	2,252	(17,275)	2,511	(14,738)
Comprehensive income	$ 112,395	$ 84,345	$ 200,888	$ 160,648

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Paid-in- Capital	Accumulated Other Comprehensive Income / (Loss)	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2021		491,911
Beginning balance at Dec. 31, 2021	$ 1,111,217	$ 491,911	$ 105,629	$ (16,411)	$ 530,088
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	175,386				175,386
Other comprehensive income / (loss), net of tax:
Foreign currency translation adjustments	(13,786)			(13,786)
Unrealized gain (loss) on available for sale securities	(952)			(952)
Cash dividends	(98,434)				(98,434)
Stock compensation (in shares)		731
Stock compensation	10,957	$ 731	10,226
Employee stock buybacks (in shares)		(225)
Employee stock buybacks	(7,010)	$ (225)	(6,785)
Ending balance (in shares) at Jun. 30, 2022		492,417
Ending balance at Jun. 30, 2022	1,177,378	$ 492,417	109,070	(31,149)	607,040
Beginning balance (in shares) at Mar. 31, 2022		492,461
Beginning balance at Mar. 31, 2022	1,138,019	$ 492,461	104,783	(13,874)	554,649
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	101,620				101,620
Other comprehensive income / (loss), net of tax:
Foreign currency translation adjustments	(16,913)			(16,913)
Unrealized gain (loss) on available for sale securities	(362)			(362)
Cash dividends	(49,229)				(49,229)
Stock compensation (in shares)		(26)
Stock compensation	4,819	$ (26)	4,845
Employee stock buybacks (in shares)		(18)
Employee stock buybacks	(576)	$ (18)	(558)
Ending balance (in shares) at Jun. 30, 2022		492,417
Ending balance at Jun. 30, 2022	1,177,378	$ 492,417	109,070	(31,149)	607,040
Beginning balance (in shares) at Dec. 31, 2022		492,448
Beginning balance at Dec. 31, 2022	1,267,197	$ 492,448	119,242	(31,562)	687,069
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	198,377				198,377
Other comprehensive income / (loss), net of tax:
Foreign currency translation adjustments	2,459			2,459
Unrealized gain (loss) on available for sale securities	52			52
Cash dividends	(127,996)				(127,996)
Stock compensation (in shares)		643
Stock compensation	12,331	$ 643	11,688
Employee stock buybacks (in shares)		(270)
Employee stock buybacks	(10,195)	$ (270)	(9,925)
Ending balance (in shares) at Jun. 30, 2023		492,821
Ending balance at Jun. 30, 2023	1,342,225	$ 492,821	121,005	(29,051)	757,450
Beginning balance (in shares) at Mar. 31, 2023		492,787
Beginning balance at Mar. 31, 2023	1,287,752	$ 492,787	115,018	(31,303)	711,250
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	110,143				110,143
Other comprehensive income / (loss), net of tax:
Foreign currency translation adjustments	2,362			2,362
Unrealized gain (loss) on available for sale securities	(110)			(110)
Cash dividends	(63,943)				(63,943)
Stock compensation (in shares)		42
Stock compensation	6,384	$ 42	6,342
Employee stock buybacks (in shares)		(8)
Employee stock buybacks	(363)	$ (8)	(355)
Ending balance (in shares) at Jun. 30, 2023		492,821
Ending balance at Jun. 30, 2023	$ 1,342,225	$ 492,821	$ 121,005	$ (29,051)	$ 757,450

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
OPERATING ACTIVITIES
Net income	$ 198,377	$ 175,386
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	48,941	45,732
Stock-based compensation expense	12,331	10,957
Provision for expected credit losses	9,946	8,433
Gain on sale of assets, net	(5,734)	(3,190)
Provision for deferred income taxes	144	3,301
Changes in operating assets and liabilities:
Trade accounts receivable and other accounts receivable	(28,425)	(29,217)
Financing receivables	(13,000)	(11,928)
Materials and supplies	(2,233)	(176)
Other current assets	(28,513)	(21,651)
Accounts payable and accrued expenses	34,055	10,745
Unearned revenue	18,047	19,860
Other long-term assets and liabilities	4,250	6,565
Net cash provided by operating activities	248,186	214,817
INVESTING ACTIVITIES
Acquisitions, net of cash acquired	(327,892)	(49,580)
Capital expenditures	(14,411)	(15,881)
Proceeds from sale of assets	10,186	3,290
Other investing activities, net	495	139
Net cash (used in) investing activities	(331,622)	(62,032)
FINANCING ACTIVITIES
Payment of contingent consideration	(4,350)	(5,196)
Borrowings under term loan	0	252,000
Borrowings under revolving commitment	585,000	11,000
Repayments of term loan	(55,000)	(65,000)
Repayments of revolving commitment	(245,000)	(118,000)
Payment of dividends	(127,996)	(98,434)
Cash paid for common stock purchased	(11,808)	(7,010)
Other financing activities, net	(651)	0
Net cash provided by (used in) financing activities	140,195	(30,640)
Effect of exchange rate changes on cash	2,642	(6,482)
Net increase in cash and cash equivalents	59,401	115,663
Cash and cash equivalents at beginning of period	95,346	105,301
Cash and cash equivalents at end of period	154,747	220,964
Supplemental disclosure of cash flow information:
Cash paid for interest	4,197	1,668
Cash paid for income taxes, net	84,583	69,742
Non-cash additions to operating lease right-of-use assets	$ 55,353	$ 51,212

BASIS OF PREPARATION

BASIS OF PREPARATION	6 Months Ended
BASIS OF PREPARATION	Jun. 30, 2023
Accounting Policies [Abstract]
BASIS OF PREPARATION	BASIS OF PREPARATION Basis of Preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, the instructions to Form 10-Q and applicable sections of SEC regulation S-X, and therefore do not include all information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. Effective January 1, 2023, we reorganized our reporting structure including the transition of Jerry E. Gahlhoff, Jr. to the role of Chief Executive Officer. As a result of the transition, we reevaluated our segment reporting and determined that we now have two operating segments and two goodwill reporting units, but we continue to operate under one reportable segment which contains our residential, commercial, and termite business lines. As of January 1, 2023, we performed an assessment of whether there was an indication of impairment before and after the reorganization. In that analysis, we determined that no goodwill impairment existed. There have been no material changes in the Company’s significant accounting policies or the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Rollins, Inc. (including its subsidiaries unless the context otherwise requires, “Rollins,” “we,” “us,” “our,” or the “Company”) for the year ended December 31, 2022. Accordingly, the quarterly condensed consolidated financial statements and related disclosures herein should be read in conjunction with the 2022 Annual Report on Form 10-K. The Company’s condensed consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and related disclosures as of the date of the condensed consolidated financial statements. The Company considered the impact of economic trends on the assumptions and estimates used in preparing the condensed consolidated financial statements. In the opinion of management, all material adjustments necessary for a fair presentation of the Company’s financial results for the quarter have been made. These adjustments are of a normal recurring nature but complicated by the continued uncertainty surrounding economic trends. The results of operations for the three and six months ended June 30, 2023, are not necessarily indicative of results for the entire year. The severity, magnitude and duration of certain economic trends continue to be uncertain and are difficult to predict. Therefore, our accounting estimates and assumptions may change over time in response to economic trends and may change materially in future periods. Certain condensed consolidated financial statement amounts relative to the prior period have been revised as detailed in our annual report on Form 10-K for the year ended December 31, 2022. The impact of this revision on the Company's previously reporting condensed consolidated financial statements for the three and six months ended June 30, 2022, includes a decrease to depreciation and amortization expense of $1.7 million and $3.4 million and an increase in the provision for income tax expense of $0.4 million and $0.8 million. This revision affects these specific line items and subtotals within the consolidated statements of income, comprehensive income, stockholders' equity and cash flows.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Jun. 30, 2023
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Recently adopted accounting standards In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-02, “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The amendments in this Update eliminate the accounting guidance for troubled debt restructurings (TDRs) by creditors in Subtopic 310-40, Receivables-Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, for public business entities, the amendments in this Update require that an entity disclose current-period gross write-offs by year of origination for financing receivables. ASU 2022-02 was effective for fiscal years beginning after December 15, 2022. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
ACQUISITIONS	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	ACQUISITIONS Fox Pest Control Acquisition On April 1, 2023, the Company acquired 100% of FPC Holdings, LLC (“Fox Pest Control”, or "Fox"). As part of funding the Fox Pest Control acquisition, on April 3, 2023, the Company borrowed incremental amounts under the Credit Agreement of $305.0 million. The proceeds were used to pay cash consideration at closing. Management believes that the acquisition will expand the Rollins family of brands and drive long term value given Fox's attractive financial profile and complementary end market exposure. The Fox Pest Control acquisition has been accounted for as a business combination, and the Fox results of operations are included in the Company's results of operations from the April 1, 2023, acquisition date. Fox contributed revenues of $39.4 million and net earnings of $2.2 million from April 1, 2023, through the period end date, June 30, 2023. The valuation of the Fox Pest Control acquisition was performed by a third-party valuation specialist under our management’s supervision. The preliminary values of identified assets acquired, and liabilities assumed for Fox Pest Control are summarized as follows (in thousands). June 30, 2023 Cash $ 4,366 Accounts receivable 1,542 Materials and supplies 431 Operating lease right-of-use assets 8,689 Other current assets 487 Goodwill 187,655 Customer contracts 118,000 Trademarks & tradenames 38,000 Current liabilities (5,051) Unearned revenue (6,144) Operating lease liabilities (8,689) Assets acquired and liabilities assumed $ 339,286 The Company purchased Fox Pest Control for $339.3 million. Included in the total consideration above are cash payments of $302.8 million made upon closing, contingent consideration valued at $28.0 million that is based on Fox Pest Control's financial performance in the twelve months following acquisition, and holdback liabilities valued at $8.4 million to be held by the Company to settle indemnity claims and working capital adjustments. The fair value of the contingent consideration was estimated using a Monte Carlo simulation. During the second quarter ended June 30, 2023, we recognized a charge of $1.0 million related to adjustments to the fair value of contingent consideration resulting from the acquisition of Fox. This charge is reported within sales, general and administrative expenses in our condensed consolidated statement of income. Acquired customer contracts are estimated to have a remaining useful life of 7 years. The acquired trademarks and tradenames are expected to have an indefinite useful life. See Note 6. Goodwill and Intangible Assets for further details. Goodwill from this acquisition represents the excess of the purchase price over the fair value of net assets of the business acquired. The factors contributing to the amount of goodwill are based on strategic and synergistic benefits that are expected to be realized. The recognized goodwill is expected to be deductible for tax purposes. Valuations of certain assets and liabilities, including intangible assets and goodwill, as of the acquisition date have not been finalized at this time and are provisional. Pro Forma Financial Information The following table presents unaudited consolidated pro forma information as if the acquisition of Fox had occurred on January 1, 2022. The information presented below is for illustrative purposes only and is not necessarily indicative of results that would have been achieved if the acquisition had actually occurred as of the beginning of such years or results which may be achieved in the future. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Revenues $ 820,750 $ 745,838 $ 1,507,673 $ 1,360,062 Net income 109,564 99,549 191,999 169,921 The pro forma financial information above adjusts for the effects of material business combination items, including the alignment of accounting policies, the effect of fair value adjustments including the amortization of acquired intangible assets, interest expense related to the incremental borrowings under the Credit Agreement, and income tax effects as if Fox had been part of Rollins since January 1, 2022 . Other 2023 Acquisitions The Company also made 14 other acquisitions during the six months ended June 30, 2023. The aggregate preliminary values of major classes of assets acquired and liabilities assumed recorded at the dates of acquisition, as adjusted during the valuation period, are included in the reconciliation of the total preliminary consideration as follows (in thousands): June 30, 2023 Cash $ 249 Accounts receivable 287 Materials and supplies 201 Other current assets 49 Equipment and property 2,311 Goodwill 11,540 Customer contracts 20,163 Other intangible assets 283 Current liabilities (163) Unearned revenue (861) Other assets and liabilities, net (693) Assets acquired and liabilities assumed $ 33,366 Included in the total consideration above are acquisition holdback liabilities of $3.6 million. Goodwill from acquisitions represents the excess of the purchase price over the fair value of net assets of businesses acquired. The factors contributing to the amount of goodwill are based on strategic and synergistic benefits that are expected to be realized. A majority of the recognized goodwill is expected to be deductible for tax purposes. Valuations of certain assets and liabilities, including intangible assets and goodwill, as of the acquisition date have not been finalized at this time and are provisional.

REVENUE

REVENUE	6 Months Ended
REVENUE	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue, classified by the major geographic areas in which our customers are located, was as follows: Three Months Ended Six Months Ended (in thousands) 2023 2022 2023 2022 United States $ 763,646 $ 661,703 $ 1,372,654 $ 1,208,163 Other countries 57,104 52,346 106,111 96,566 Total Revenues $ 820,750 $ 714,049 $ 1,478,765 $ 1,304,729 Revenue from external customers, classified by significant product and service offerings, was as follows: Three Months Ended Six Months Ended (in thousands) 2023 2022 2023 2022 Residential revenue $ 385,645 $ 325,311 $ 669,270 $ 584,570 Commercial revenue 259,964 234,483 490,366 440,270 Termite completions, bait monitoring, & renewals 166,823 146,781 303,428 266,487 Franchise revenues 4,303 4,155 8,090 7,892 Other revenues 4,015 3,319 7,611 5,510 Total Revenues $ 820,750 $ 714,049 $ 1,478,765 $ 1,304,729 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 10% or more of the sales for the periods listed in the above table. The Company records unearned revenue when we have either received payment or contractually have the right to bill for services in advance of the services or performance obligations being performed. Unearned revenue recognized in the three and six months ended June 30, 2023, and 2022 was $57.8 million and $51.0 million, respectively and $113.3 million and $100.9 million, respectively. Changes in unearned revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Beginning balance $ 198,154 $ 180,333 $ 187,994 $ 168,607 Deferral of unearned revenue 77,911 63,628 143,537 125,263 Recognition of unearned revenue (57,791) (50,989) (113,257) (100,898) Ending balance $ 218,274 $ 192,972 $ 218,274 $ 192,972 As of June 30, 2023, and December 31, 2022, the Company had long-term unearned revenue of $35.0 million and $29.9 million, respectively, recorded in other long-term accrued liabilities. 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 2033.

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES	6 Months Ended
ALLOWANCE FOR CREDIT LOSSES	Jun. 30, 2023
Receivables [Abstract]
ALLOWANCE FOR CREDIT LOSSES	ALLOWANCE FOR CREDIT LOSSES The Company is exposed to credit losses primarily related to accounts receivables and financed receivables derived from customer services revenue. To reduce credit risk for residential pest control accounts receivable, we promote enrollment in our auto-pay programs. In general, we may suspend future services for customers with past due balances. The Company’s credit risk is generally low with a large number of individuals and entities comprising Rollins’ customer base and dispersion across many different geographical regions. The Company manages its financing receivables on an aggregate basis when assessing and monitoring credit risks. The Company’s established credit evaluation and monitoring procedures seek to minimize the amount of business we conduct with higher risk customers. The credit quality of a potential obligor is evaluated at the loan origination based on an assessment of the individual’s Beacon/credit bureau score. Rollins requires a potential obligor to have good credit worthiness with low risk before entering into a contract. Depending upon the individual’s credit score, the Company may accept with 100% financing, require a significant down payment or turn down the contract. Delinquencies of accounts are monitored each month. Financing receivables include installment receivable amounts, some of which are due subsequent to one year from the balance sheet dates. The Company’s allowances for credit losses for trade accounts receivable and financed receivables are developed using historical collection experience, current economic and market conditions, reasonable and supportable forecasts, and a review of the current status of customers’ receivables. The Company’s receivable pools are classified between residential customers, commercial customers, large commercial customers, and financed receivables. Accounts are written off against the allowance for credit losses when the Company determines that amounts are uncollectible, and recoveries of amounts previously written off are recorded when collected. The Company stops accruing interest to these receivables when they are deemed uncollectible. Below is a roll forward of the Company’s allowance for credit losses for the three and six months ended June 30, 2023, and 2022. Allowance for Credit Losses (in thousands) Trade Financed Total Balance at December 31, 2022 $ 14,073 $ 4,968 $ 19,041 Provision for expected credit losses 1,461 2,435 3,896 Write-offs charged against the allowance (4,687) (1,927) (6,614) Recoveries collected 1,629 — 1,629 Balance at March 31, 2023 $ 12,476 $ 5,476 $ 17,952 Provision for expected credit losses 3,185 2,865 6,050 Write-offs charged against the allowance (4,271) (2,332) (6,603) Recoveries collected 1,349 — 1,349 Balance at June 30, 2023 $ 12,739 $ 6,009 $ 18,748 Allowance for Credit Losses (in thousands) Trade Financed Total Balance at December 31, 2021 $ 13,885 $ 3,985 $ 17,870 Provision for expected credit losses 3,204 1,054 4,258 Write-offs charged against the allowance (4,248) (1,189) (5,437) Recoveries collected 1,329 — 1,329 Balance at March 31, 2022 $ 14,170 $ 3,850 $ 18,020 Provision for expected credit losses 2,350 1,825 4,175 Write-offs charged against the allowance (4,218) (1,121) (5,339) Recoveries collected 1,364 — 1,364 Balance at June 30, 2022 $ 13,666 $ 4,554 $ 18,220

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	6 Months Ended
GOODWILL AND INTANGIBLE ASSETS	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS The following table summarizes changes in goodwill during the six months ended June 30, 2023, and the twelve months ended December 31, 2022 (in thousands): Goodwill: Balance at December 31, 2021 $ 786,504 Additions 64,997 Measurement adjustments (9) Adjustments due to currency translation (4,788) Balance at December 31, 2022 846,704 Additions 199,195 Measurement adjustments (294) Adjustments due to currency translation 392 Balance at June 30, 2023 $ 1,045,997 The carrying amount of goodwill in foreign countries was $100.6 million as of June 30, 2023, and $97.4 million as of December 31, 2022. The following table sets forth the components of indefinite-lived and amortizable intangible assets as of June 30, 2023, and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Gross Accumulated Carrying Gross Accumulated Carrying Useful Life Amortizable intangible assets: Customer contracts $ 618,743 $ (211,538) $ 407,205 $ 502,689 $ (204,130) $ 298,559 3-20 Trademarks and tradenames 18,165 (7,934) 10,231 17,351 (10,009) 7,342 7-20 Non-compete agreements 13,849 (8,646) 5,203 14,180 (8,226) 5,954 3-20 Patents 6,896 (6,881) 15 6,934 (6,802) 132 3-15 Other assets 1,983 (1,860) 123 2,016 (1,786) 230 10 Total amortizable intangible assets $ 659,636 $ (236,859) 422,777 $ 543,170 $ (230,953) 312,217 Indefinite-lived intangible assets: Trademarks and tradenames 138,670 104,304 Internet domains 2,227 2,227 Total indefinite-lived intangible assets 140,897 106,531 Total customer contracts and other intangible assets $ 563,674 $ 418,748 The carrying amount of customer contracts in foreign countries was $46.5 million and $46.1 million as of June 30, 2023, and December 31, 2022, respectively. The carrying amount of trademarks and tradenames in foreign countries was $4.0 million and $4.2 million as of June 30, 2023 and December 31, 2022. The carrying amount of other intangible assets in foreign countries was $0.5 million and $0.7 million as of June 30, 2023, and December 31, 2022, respectively. Amortization expense related to intangible assets was $18.0 million and $13.9 million for the three months ended June 30, 2023, and 2022, respectively. Amortization expense related to intangible assets was $32.0 million and $27.4 million for the six months ended June 30, 2023, and 2022, respectively. Customer contracts and other amortizable intangible assets are amortized on a straight-line basis over their economic useful lives. Estimated amortization expense for the existing carrying amount of customer contracts and other intangible assets for each of the five succeeding fiscal years as of June 30, 2023, are as follows: (in thousands) 2023 (excluding the six months ended June 30, 2023) $ 45,467 2024 75,662 2025 66,856 2026 63,339 2027 59,674

LEASES

LEASES	6 Months Ended
LEASES	Jun. 30, 2023
Lessee, Operating Lease, Description [Abstract]
LEASES	LEASES The Company leases certain buildings, vehicles, and equipment. The Company elected the practical expedient approach permitted under Accounting Standards Codification Topic 842 “Leases”, not to include short-term leases with a duration of 12 months or less on the balance sheet. As of June 30, 2023, and December 31, 2022, all leases were classified as operating leases. Building leases generally carry terms of 5 to 15 years with annual rent escalations at fixed amounts per the lease. Vehicle leases generally carry a fixed term of one year with renewal options to extend the lease on a monthly basis resulting in lease terms up to 7 years depending on the class of vehicle. The exercise of renewal options is at the Company’s sole discretion. It is reasonably certain that the Company will exercise the renewal options on its vehicle leases. The measurement of right-of-use assets and liabilities for vehicle leases includes the fixed payments associated with such renewal periods. We separate lease and non-lease components of contracts. Our lease agreements do not contain any material variable payments, residual value guarantees, early termination penalties or restrictive covenants. The Company uses the rate implicit in the lease when available; however, most of our leases do not provide a readily determinable implicit rate. Accordingly, we estimate our incremental borrowing rate based on information available at lease commencement. (in thousands, except Other Information) Three Months Ended June 30, Six Months Ended June 30, Lease Classification Financial Statement Classification 2023 2022 2023 2022 Short-term lease cost Cost of services provided, Sales, general, and administrative expenses $ 81 $ 36 $ 148 $ 62 Operating lease cost Cost of services provided, Sales, general, and administrative expenses 27,480 23,615 53,667 47,638 Total lease expense $ 27,561 $ 23,651 $ 53,815 $ 47,700 Other Information: Weighted-average remaining lease term - operating leases 4.9 years 5.4 years Weighted-average discount rate - operating leases 3.82 % 3.34 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 53,212 $ 47,099 Lease Commitments Future minimum lease payments, including assumed exercise of renewal options as of June 30, 2023, were as follows: (in thousands) 2023 (excluding the six months ended June 30, 2023) $ 51,531 2024 84,780 2025 65,720 2026 44,647 2027 21,008 2028 13,234 Thereafter 40,365 Total future minimum lease payments 321,285 Less: Amount representing interest 34,166 Total future minimum lease payments, net of interest $ 287,119 Future commitments presented in the table above include lease payments in renewal periods for which it is reasonably certain that the Company will exercise the renewal option. Total future minimum lease payments for operating leases, including the amount representing interest, are comprised of $164.4 million for building leases and $156.9 million for vehicle leases. As of June 30, 2023, the Company had additional future obligations of $11.9 million for leases that had not yet commenced.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
FAIR VALUE MEASUREMENTS	Jun. 30, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The Company’s financial instruments consist of cash and cash equivalents, trade receivables, financed and notes receivable, accounts payable, other short-term liabilities, and debt. The carrying amounts of these financial instruments approximate their respective fair values. The Company also has derivative instruments as further discussed in Note 10. Derivative Instruments and Hedging Activities. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs. As of June 30, 2023, and December 31, 2022, we had investments in international bonds of $10.1 million and $10.7 million, respectively. These bonds are accounted for as available for sale securities and are level 2 assets under the fair value hierarchy. At June 30, 2023, $0.8 million was included in other current assets and $9.3 million was included in other assets. At December 31, 2022, $0.5 million was included in other current assets and $10.2 million was included in other assets. The bonds are recorded at fair market value with unrealized losses of $0.1 million and an insignificant amount of unrealized gains included in other comprehensive income during the three and six months ended June 30, 2023, respectively. Unrealized losses of $0.4 million and $1.0 million are included in other comprehensive income during the three and six months ended June 30, 2022, respectively. As of June 30, 2023, and December 31, 2022, the Company had $49.3 million and $13.5 million of acquisition holdback and earnout liabilities payable to former owners of acquired companies, respectively. The earnout liabilities were discounted to reflect the expected probability of payout, and both earnout and holdback liabilities were discounted to their net present value on the Company’s books and are considered level 3 liabilities. The table below presents a summary of the changes in fair value for these liabilities. Three Months Ended Six Months Ended (in thousands) 2023 2022 2023 2022 Beginning balance $ 10,533 $ 23,399 $ 13,496 $ 25,156 New acquisitions and revaluations 38,731 1,574 40,031 2,750 Payouts (252) (2,145) (4,350) (5,196) Interest on outstanding contingencies 1,084 122 1,106 247 Charge offset, forfeit and other (788) (208) (975) (215) Ending balance $ 49,308 $ 22,742 $ 49,308 $ 22,742

DEBT

DEBT	6 Months Ended
DEBT	Jun. 30, 2023
Debt Disclosure [Abstract]
DEBT	DEBT On February 24, 2023, the Company entered into a revolving credit agreement (the "Credit Agreement") with, among others, JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent (in such capacity, the “Administrative Agent”), which refinanced its previous credit facility described below. This Credit Agreement replaces the April 2019 facility that was set to expire in April 2024. The Credit Agreement provides for a $1.0 billion revolving credit facility (the “Credit Facility”), which may be denominated in U.S. Dollars and other currencies, including Euros, Australian Dollars, Canadian Dollars, New Zealand Dollars, Pounds Sterling and Japanese Yen, subject to a $400 million foreign currency sublimit. The Credit Facility also includes sub-facilities for the issuance of letters of credit of up to $150 million and swing line loans at the Administrative Agent’s discretion of up to $50 million. Certain subsidiaries of Rollins provide unsecured guarantees of the Credit Facility. Rollins has the ability to expand its borrowing availability under the Credit Agreement in the form of increased revolving commitments or one or more tranches of term loans by up to an additional $750 million, subject to the agreement of the participating lenders and certain other customary conditions. The maturity date of the loans under the Credit Agreement is February 24, 2028. Loans under the Credit Agreement bear interest, at Rollins’ election, at (i) for loans denominated in U.S. Dollars, (A) an alternate base rate (subject to a floor of 0.00%), which is the greatest of (x) the prime rate publicly announced from time to time by JPMorgan Chase, (y) the greater of the federal funds effective rate and the Federal Reserve Bank of New York overnight bank funding rate, plus 50 basis points, and (z) Adjusted Term SOFR for a one month interest period, plus a margin ranging from 0.00% to 0.50% per annum based on Rollins’ consolidated total net leverage ratio; or (B) the greater of term SOFR for the applicable interest period plus 10 basis points (“Adjusted Term SOFR”) and zero, plus a margin ranging from 1.00% to 1.50% per annum based on Rollins’ consolidated total net leverage ratio; and (ii) for loans denominated in other currencies, including Euros, Australian Dollars, Canadian Dollars, New Zealand Dollars, Pounds Sterling and Japanese Yen, such interest rates as set forth in the Credit Agreement. As of June 30, 2023, the Company had outstanding borrowings of $340.0 million under the Credit Facility. Borrowings under the Credit Facility are presented under the long-term debt caption of our condensed consolidated balance sheet, net of $2.5 million in unamortized debt issuance costs as of June 30, 2023. The aggregate effective interest rate on the debt outstanding as of June 30, 2023, was 6.5%. As of December 31, 2022, the Company had outstanding borrowings of $54.9 million under the previous Term Loan and there were no outstanding borrowings under the previous Revolving Commitment. The aggregate effective interest rate on the debt outstanding as of December 31, 2022 was 5.1%. The Company maintains $71.7 million in letters of credit as of June 30, 2023. These letters of credit are required by the Company’s insurance companies, due to the Company’s high deductible insurance program, to secure various workers’ compensation and casualty insurance contracts coverage and were increased from $71.3 million as of December 31, 2022. The Company believes that it has adequate liquid assets, funding sources and insurance accruals to accommodate potential future insurance claims.

DERIVATIVE INSTRUMENTS AND HEDG

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	6 Months Ended
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to certain interest rate risks on our outstanding debt and foreign currency risks arising from our international business operations and global economic conditions. The Company enters into certain derivative financial instruments to lock in certain interest rates, as well as to protect the value or fix the amount of certain obligations in terms of its functional currency, the U.S. dollar. The Company is exposed to fluctuations in various foreign currencies against its functional currency, the U.S. dollar. We use foreign currency derivatives, specifically foreign currency forward contracts (“FX Forwards”), to manage our exposure to fluctuations in the USD-CAD and USD-AUD exchange rates. FX Forwards involve fixing the foreign currency exchange rate for delivery of a specified amount of foreign currency on a specified date. The FX Forwards are typically settled in U.S. dollars for their fair value at or close to their settlement date. We do not currently designate any of these FX Forwards under hedge accounting, but rather reflect the changes in fair value immediately in earnings. We do not use such instruments for speculative or trading purposes, but rather use them to manage our exposure to foreign exchange rates. Changes in the fair value of FX Forwards were recorded in other income/expense and were insignificant for the three and six month periods ended June 30, 2023 and 2022. The fair values of the Company’s FX Forwards were recorded as a net liability of $0.2 million in Other Current Liabilities as of June 30, 2023, and a net asset of $0.3 million in Other Current Assets as of December 31, 2022. As of June 30, 2023, the Company had the following outstanding FX Forwards (in thousands except for number of instruments): Non-Designated Derivative Summary FX Forward Contracts Number of Sell Buy Sell AUD/Buy USD Fwd Contract 19 2,350 $ 1,570 Sell CAD/Buy USD Fwd Contract 19 19,000 14,155 Total 38 $ 15,725

CONTINGENCIES

CONTINGENCIES	6 Months Ended
CONTINGENCIES	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES In the normal course of business, the Company and its subsidiaries are involved in, and will continue to be involved in, various claims, arbitrations, contractual disputes, investigations, and regulatory and litigation matters relating to, and arising out of, our businesses and our operations. These matters may involve, but are not limited to, allegations that our services or vehicles caused damage or injury, claims that our services did not achieve the desired results, claims related to acquisitions and allegations by federal, state or local authorities, including taxing authorities, of violations of regulations or statutes. In addition, we are parties to employment-related cases and claims from time to time, which may include claims on a representative or class action basis alleging wage and hour law violations. We are also involved from time to time in certain environmental matters primarily arising in the normal course of business. We evaluate pending and threatened claims and establish loss contingency reserves based upon outcomes we currently believe to be probable and reasonably estimable. The Company retains, up to specified limits, certain risks related to general liability, workers’ compensation and auto liability. The estimated costs of existing and future claims under the retained loss program are accrued based upon historical trends as incidents occur, whether reported or unreported (although actual settlement of the claims may not be made until future periods) and may be subsequently revised based on developments relating to such claims. The Company contracts with an independent third party to provide the Company an estimated liability based upon historical claims information. The actuarial study is a major consideration in establishing the reserve, along with management’s knowledge of changes in business practice and existing claims compared to current balances. Management’s judgment is inherently subjective as a number of factors are outside management’s knowledge and control. Additionally, historical information is not always an accurate indication of future events. The accruals and reserves we hold are based on estimates that involve a degree of judgment and are inherently variable and could be overestimated or insufficient. If actual claims exceed our estimates, our operating results could be materially affected, and our ability to take timely corrective actions to limit future costs may be limited. Management does not believe that any pending claim, proceeding or litigation, regulatory action or investigation, 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 could result in a charge that might be material to the results of an individual quarter or year.

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
STOCKHOLDERS’ EQUITY	Jun. 30, 2023
Equity [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS’ EQUITY During the six months ended June 30, 2023, the Company paid $128.0 million, or $0.26 per share, in cash dividends compared to $98.4 million, or $0.20 per share, during the same period in 2022. During the six months ended June 30, 2023, and during the same period in 2022, the Company did not repurchase shares on the open market. However, in 2023 the Company purchased shares on behalf of employees for the Employee Stock Purchase Plan ("ESPP") discussed below. The Company repurchases shares from employees for the payment of their taxes on restricted shares that have vested. The Company repurchased $0.4 million and $0.6 million for the quarters ended June 30, 2023, and 2022, and $11.8 million and $7.0 million for the six month periods ended June 30, 2023 and 2022, respectively. Restricted Shares and Performance Share Unit Awards As more fully discussed in Note 14 of the Company’s notes to the consolidated financial statements in its 2022 Annual Report on Form 10-K, time-lapse restricted awards and restricted stock units (“restricted shares”) have been issued to officers and other management employees under the Company’s Employee Stock Incentive Plans. Beginning with the 2023 grant, restricted shares vest in 25 percent increments over four years from the date of the grant. Prior grants vest either over five years or over six years from the date of grant, depending on the year of the grant. Additionally, during 2023, certain executives were granted Performance Share Unit awards (PSUs) in addition to restricted shares. These awards will be expensed on a straight-line basis over the three-year vesting period. The Company issues new shares from its authorized but unissued share pool. As of June 30, 2023, approximately 5.3 million shares of the Company’s common stock were reserved for issuance. The following table summarizes the components of the Company’s stock-based compensation programs recorded as expense: Three Months Ended Six Months Ended (in thousands) 2023 2022 2023 2022 Restricted shares and PSUs: Pre-tax compensation expense $ 6,192 $ 4,819 $ 11,948 $ 10,957 Tax benefit (1,687) (1,272) (3,083) (2,596) Compensation expense, net of tax $ 4,505 $ 3,547 $ 8,865 $ 8,361 The following table summarizes information on unvested awards outstanding as of June 30, 2023: (number of shares in thousands) Number of Weighted Unvested restricted shares and PSUs at December 31, 2022 2,685 $ 28.97 Forfeited (59) 29.54 Vested (820) 26.88 Granted 671 36.48 Unvested restricted shares and PSUs at June 30, 2023 2,477 $ 31.68 As of June 30, 2023, and December 31, 2022, the Company had $64.2 million and $52.3 million of total unrecognized compensation cost, respectively, related to restricted shares and PSUs that are expected to be recognized over a weighted average period of approximately 3.3 years and 3.5 years, respectively. Employee Stock Purchase Plan As more fully discussed in Note 14 of the Company’s notes to the consolidated financial statements in its 2022 Annual Report on Form 10-K, shareholders approved the Rollins, Inc. 2022 Employee Stock Purchase Plan which provides eligible employees with the option to purchase shares of Company common stock, at a discount, through payroll deductions. The most recent purchase period for the ESPP began on January 1, 2023, and ended on June 30, 2023. The Company recorded compensation expense associated with the purchase period of $0.2 million and $0.4 million during the three and six months ended June 30, 2023. Compensation expense for the ESPP is included in cost of services provided and sales, general and administrative expenses in our condensed consolidated statements of income.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
EARNINGS PER SHARE	Jun. 30, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE The Company reports both basic and diluted earnings per share. Basic earnings per share is computed by dividing net income available to participating common stockholders by the weighted average number of participating common shares outstanding for the period. Diluted earnings per share is calculated by dividing the net income available to participating common shareholders by the diluted weighted average number of shares outstanding for the period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive equity. A reconciliation of weighted average shares outstanding is as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Weighted-average outstanding common shares 490,168 489,741 490,058 489,679 Add participating securities: Weighted-average time-lapse restricted awards 2,532 2,586 2,535 2,591 Total weighted-average shares outstanding - basic 492,700 492,327 492,593 492,270 Dilutive effect of restricted stock units and PSUs 191 113 171 112 Weighted-average shares outstanding - diluted 492,891 492,440 492,764 492,382

INCOME TAXES

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESThe Company’s provision for income taxes is recorded on an interim basis based upon the Company’s estimate of the annual effective income tax rate for the full year applied to “ordinary” income or loss, adjusted each quarter for discrete items. The Company recorded a provision for income taxes of $40.9 million and $34.1 million for the three months ended June 30, 2023, and 2022, and $69.1 million and $54.4 million for the six months ended June 30, 2023 and 2022, respectively. The Company’s effective tax rate increased to 27.1% in the second quarter of 2023 compared to 25.1% in 2022. During the six months ended June 30, 2023, the Company’s effective tax rate increased to 25.8% compared to 23.7% in 2022. The rate was higher due to higher foreign income taxes compared to the prior year.As of June 30, 2023, and December 31, 2022, the Company had deferred income tax assets of $0.7 million and $1.8 million included in other assets, and deferred income tax liabilities of $26.0 million and $24.2 million, respectively, included in other long-term accrued liabilities.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
RELATED PARTY TRANSACTIONS	Jun. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS On June 5, 2023, the Company entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with LOR, Inc. (“LOR”). LOR is a member of the control group which owns more than 50% of our stock (“Control Group”). Under the Registration Rights Agreement, the Company must use reasonable best efforts to file and keep a registration statement on Form S-3 continuously effective and usable for the resale of the shares owned by the Control Group as of the date of the Registration Rights Agreement. With certain exceptions, LOR has the right to request up to eight (8) offerings pursuant to the Registration Rights Agreement. The Registration Rights Agreement will stay in effect until June 5, 2038. Pursuant to the Registration Rights Agreement, a registration statement on Form S-3 was filed with the Securities and Exchange Commission on June 5, 2023, and declared effective on June 22, 2023 (the "Form S-3"). Concurrently with the execution of the Registration Rights Agreement, LOR paid $1.5 million to the Company and will pay an additional $3.5 million to the Company upon the closing of the first requested offering pursuant to the Registration Rights Agreement. Pursuant to the Registration Rights Agreement, the Company will pay all costs, fees and expenses incident to the Company’s performance or compliance with the Registration Rights Agreement with respect to a total of five (5) requested offerings, and thereafter, LOR will be responsible for all such expenses in connection with any subsequent offering. The Registration Rights Agreement also contains customary indemnification provisions. The Registration Rights Agreement was approved by the disinterested directors of our Board, which excluded any directors with a relationship with LOR or the Control Group. The foregoing description of the Registration Rights Agreement does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the full text of the Registration Rights Agreement, which is filed as Exhibit 4.11 to the Form S-3.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Quarterly Dividend On July 25, 2023, the Company’s Board of Directors declared a regular quarterly cash dividend on its common stock of $0.13 per share payable on September 8, 2023 to stockholders of record at the close of business on August 10, 2023.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
NET INCOME	$ 110,143	$ 101,620	$ 198,377	$ 175,386

Insider Trading Arrangements

Insider Trading Arrangements shares in Thousands	3 Months Ended	6 Months Ended
Insider Trading Arrangements shares in Thousands	Jun. 30, 2023 shares	Jun. 30, 2023 shares
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	true
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Officer Trading Arrangement [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		OTHER INFORMATION Rule 10b5-1 Trading Plans Securities Trading Plans of Directors and Executive Officers During the three months ended June 30, 2023, the following executive officers entered into, modified or terminated, contracts, instructions or written plans for the sale of the Company’s securities, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1 of the Exchange Act, referred to as Rule 10b5-1 trading plans. Name and Title Date of Adoption of the Rule 10b5-1 Trading Plan Scheduled Expiration Date of the Rule 10b5-1 Trading Plan Total Amount of Securities to Be Sold Transactions Pursuant to 10b5-1 Trading Plan Early Termination of the Rule 10b5-1 Trading Plan Jerry E. Gahlhoff, Jr. Chief Executive Officer and President June 12, 2023 August 30, 2024 17,000 Sales to occur on or after September 11, 2023, if certain limit prices are met If all 17,000 shares of Company common stock are sold prior to the scheduled expiration date, the trading plan will terminate on such earlier date Kenneth D. Krause Executive Vice President, Chief Financial Officer and Treasurer March 13, 2023 February 28, 2024 12,000 Sales occurred on June 12, 2023, once certain limit prices were met Immediately after sales occurred, the trading plan terminated on June 12, 2023 Elizabeth B. Chandler Vice President, General Counsel and Corporate Secretary June 13, 2023 June 14, 2024 10,000 Sales to occur on or after February 21, 2024, if certain limit prices are met If all 10,000 shares of Company common stock are sold prior to the scheduled expiration date, the trading plan will terminate on such earlier date
Officer Trading Arrangement [Member] \| Jerry E. Gahlhoff, Jr. [Member]
Trading Arrangements, by Individual
Name	Jerry E. Gahlhoff, Jr.
Title	Chief Executive Officer and President
Adoption Date	June 12, 2023
Arrangement Duration	445 days
Aggregate Available	17	17
Officer Trading Arrangement [Member] \| Kenneth D. Krause [Member]
Trading Arrangements, by Individual
Name	Kenneth D. Krause
Title	Executive Vice President, Chief Financial Officer and Treasurer
Adoption Date	March 13, 2023
Arrangement Duration	352 days
Aggregate Available	12	12
Officer Trading Arrangement [Member] \| Elizabeth B. Chandler [Member]
Trading Arrangements, by Individual
Name	Elizabeth B. Chandler
Title	Vice President, General Counsel and Corporate Secretary
Adoption Date	June 13, 2023
Arrangement Duration	1 day
Aggregate Available	10	10

BASIS OF PREPARATION (Policies)

BASIS OF PREPARATION (Policies)	6 Months Ended
BASIS OF PREPARATION (Policies)	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Preparation	Basis of Preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, the instructions to Form 10-Q and applicable sections of SEC regulation S-X, and therefore do not include all information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. Effective January 1, 2023, we reorganized our reporting structure including the transition of Jerry E. Gahlhoff, Jr. to the role of Chief Executive Officer. As a result of the transition, we reevaluated our segment reporting and determined that we now have two operating segments and two goodwill reporting units, but we continue to operate under one reportable segment which contains our residential, commercial, and termite business lines. As of January 1, 2023, we performed an assessment of whether there was an indication of impairment before and after the reorganization. In that analysis, we determined that no goodwill impairment existed. There have been no material changes in the Company’s significant accounting policies or the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Rollins, Inc. (including its subsidiaries unless the context otherwise requires, “Rollins,” “we,” “us,” “our,” or the “Company”) for the year ended December 31, 2022. Accordingly, the quarterly condensed consolidated financial statements and related disclosures herein should be read in conjunction with the 2022 Annual Report on Form 10-K. The Company’s condensed consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and related disclosures as of the date of the condensed consolidated financial statements. The Company considered the impact of economic trends on the assumptions and estimates used in preparing the condensed consolidated financial statements. In the opinion of management, all material adjustments necessary for a fair presentation of the Company’s financial results for the quarter have been made. These adjustments are of a normal recurring nature but complicated by the continued uncertainty surrounding economic trends. The results of operations for the three and six months ended June 30, 2023, are not necessarily indicative of results for the entire year. The severity, magnitude and duration of certain economic trends continue to be uncertain and are difficult to predict. Therefore, our accounting estimates and assumptions may change over time in response to economic trends and may change materially in future periods. Certain condensed consolidated financial statement amounts relative to the prior period have been revised as detailed in our annual report on Form 10-K for the year ended December 31, 2022. The impact of this revision on the Company's previously reporting condensed consolidated financial statements for the three and six months ended June 30, 2022, includes a decrease to depreciation and amortization expense of $1.7 million and $3.4 million and an increase in the provision for income tax expense of $0.4 million and $0.8 million. This revision affects these specific line items and subtotals within the consolidated statements of income, comprehensive income, stockholders' equity and cash flows.
Recently adopted accounting standards	Recently adopted accounting standards In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-02, “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The amendments in this Update eliminate the accounting guidance for troubled debt restructurings (TDRs) by creditors in Subtopic 310-40, Receivables-Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, for public business entities, the amendments in this Update require that an entity disclose current-period gross write-offs by year of origination for financing receivables. ASU 2022-02 was effective for fiscal years beginning after December 15, 2022. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
ACQUISITIONS (Tables)	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Assets Acquired and Liabilities Assumed Recorded at the Date of Acquisition	The preliminary values of identified assets acquired, and liabilities assumed for Fox Pest Control are summarized as follows (in thousands). June 30, 2023 Cash $ 4,366 Accounts receivable 1,542 Materials and supplies 431 Operating lease right-of-use assets 8,689 Other current assets 487 Goodwill 187,655 Customer contracts 118,000 Trademarks & tradenames 38,000 Current liabilities (5,051) Unearned revenue (6,144) Operating lease liabilities (8,689) Assets acquired and liabilities assumed $ 339,286 June 30, 2023 Cash $ 249 Accounts receivable 287 Materials and supplies 201 Other current assets 49 Equipment and property 2,311 Goodwill 11,540 Customer contracts 20,163 Other intangible assets 283 Current liabilities (163) Unearned revenue (861) Other assets and liabilities, net (693) Assets acquired and liabilities assumed $ 33,366
Schedule of Business Acquisition, Pro Forma Information	The following table presents unaudited consolidated pro forma information as if the acquisition of Fox had occurred on January 1, 2022. The information presented below is for illustrative purposes only and is not necessarily indicative of results that would have been achieved if the acquisition had actually occurred as of the beginning of such years or results which may be achieved in the future. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Revenues $ 820,750 $ 745,838 $ 1,507,673 $ 1,360,062 Net income 109,564 99,549 191,999 169,921

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
REVENUE (Tables)	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Revenue by Major Geographic Area, and by Significant Product and Service Offerings	Revenue, classified by the major geographic areas in which our customers are located, was as follows: Three Months Ended Six Months Ended (in thousands) 2023 2022 2023 2022 United States $ 763,646 $ 661,703 $ 1,372,654 $ 1,208,163 Other countries 57,104 52,346 106,111 96,566 Total Revenues $ 820,750 $ 714,049 $ 1,478,765 $ 1,304,729 Revenue from external customers, classified by significant product and service offerings, was as follows: Three Months Ended Six Months Ended (in thousands) 2023 2022 2023 2022 Residential revenue $ 385,645 $ 325,311 $ 669,270 $ 584,570 Commercial revenue 259,964 234,483 490,366 440,270 Termite completions, bait monitoring, & renewals 166,823 146,781 303,428 266,487 Franchise revenues 4,303 4,155 8,090 7,892 Other revenues 4,015 3,319 7,611 5,510 Total Revenues $ 820,750 $ 714,049 $ 1,478,765 $ 1,304,729
Schedule of Changes in Unearned Revenue	Changes in unearned revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Beginning balance $ 198,154 $ 180,333 $ 187,994 $ 168,607 Deferral of unearned revenue 77,911 63,628 143,537 125,263 Recognition of unearned revenue (57,791) (50,989) (113,257) (100,898) Ending balance $ 218,274 $ 192,972 $ 218,274 $ 192,972

ALLOWANCE FOR CREDIT LOSSES (Ta

ALLOWANCE FOR CREDIT LOSSES (Tables)	6 Months Ended
ALLOWANCE FOR CREDIT LOSSES (Tables)	Jun. 30, 2023
Receivables [Abstract]
Schedule of Allowance For Credit Losses	Below is a roll forward of the Company’s allowance for credit losses for the three and six months ended June 30, 2023, and 2022. Allowance for Credit Losses (in thousands) Trade Financed Total Balance at December 31, 2022 $ 14,073 $ 4,968 $ 19,041 Provision for expected credit losses 1,461 2,435 3,896 Write-offs charged against the allowance (4,687) (1,927) (6,614) Recoveries collected 1,629 — 1,629 Balance at March 31, 2023 $ 12,476 $ 5,476 $ 17,952 Provision for expected credit losses 3,185 2,865 6,050 Write-offs charged against the allowance (4,271) (2,332) (6,603) Recoveries collected 1,349 — 1,349 Balance at June 30, 2023 $ 12,739 $ 6,009 $ 18,748 Allowance for Credit Losses (in thousands) Trade Financed Total Balance at December 31, 2021 $ 13,885 $ 3,985 $ 17,870 Provision for expected credit losses 3,204 1,054 4,258 Write-offs charged against the allowance (4,248) (1,189) (5,437) Recoveries collected 1,329 — 1,329 Balance at March 31, 2022 $ 14,170 $ 3,850 $ 18,020 Provision for expected credit losses 2,350 1,825 4,175 Write-offs charged against the allowance (4,218) (1,121) (5,339) Recoveries collected 1,364 — 1,364 Balance at June 30, 2022 $ 13,666 $ 4,554 $ 18,220

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	6 Months Ended
GOODWILL AND INTANGIBLE ASSETS (Tables)	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Goodwill	The following table summarizes changes in goodwill during the six months ended June 30, 2023, and the twelve months ended December 31, 2022 (in thousands): Goodwill: Balance at December 31, 2021 $ 786,504 Additions 64,997 Measurement adjustments (9) Adjustments due to currency translation (4,788) Balance at December 31, 2022 846,704 Additions 199,195 Measurement adjustments (294) Adjustments due to currency translation 392 Balance at June 30, 2023 $ 1,045,997
Schedule of Components of Indefinite-lived and Amortizable Intangible Assets	The following table sets forth the components of indefinite-lived and amortizable intangible assets as of June 30, 2023, and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Gross Accumulated Carrying Gross Accumulated Carrying Useful Life Amortizable intangible assets: Customer contracts $ 618,743 $ (211,538) $ 407,205 $ 502,689 $ (204,130) $ 298,559 3-20 Trademarks and tradenames 18,165 (7,934) 10,231 17,351 (10,009) 7,342 7-20 Non-compete agreements 13,849 (8,646) 5,203 14,180 (8,226) 5,954 3-20 Patents 6,896 (6,881) 15 6,934 (6,802) 132 3-15 Other assets 1,983 (1,860) 123 2,016 (1,786) 230 10 Total amortizable intangible assets $ 659,636 $ (236,859) 422,777 $ 543,170 $ (230,953) 312,217 Indefinite-lived intangible assets: Trademarks and tradenames 138,670 104,304 Internet domains 2,227 2,227 Total indefinite-lived intangible assets 140,897 106,531 Total customer contracts and other intangible assets $ 563,674 $ 418,748
Schedule of Estimated Amortization Expense	Estimated amortization expense for the existing carrying amount of customer contracts and other intangible assets for each of the five succeeding fiscal years as of June 30, 2023, are as follows: (in thousands) 2023 (excluding the six months ended June 30, 2023) $ 45,467 2024 75,662 2025 66,856 2026 63,339 2027 59,674

LEASES (Tables)

LEASES (Tables)	6 Months Ended
LEASES (Tables)	Jun. 30, 2023
Lessee, Operating Lease, Description [Abstract]
Schedule of Operating Lease Costs and Other Information	(in thousands, except Other Information) Three Months Ended June 30, Six Months Ended June 30, Lease Classification Financial Statement Classification 2023 2022 2023 2022 Short-term lease cost Cost of services provided, Sales, general, and administrative expenses $ 81 $ 36 $ 148 $ 62 Operating lease cost Cost of services provided, Sales, general, and administrative expenses 27,480 23,615 53,667 47,638 Total lease expense $ 27,561 $ 23,651 $ 53,815 $ 47,700 Other Information: Weighted-average remaining lease term - operating leases 4.9 years 5.4 years Weighted-average discount rate - operating leases 3.82 % 3.34 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 53,212 $ 47,099
Schedule of Future Minimum Lease Payments	Future minimum lease payments, including assumed exercise of renewal options as of June 30, 2023, were as follows: (in thousands) 2023 (excluding the six months ended June 30, 2023) $ 51,531 2024 84,780 2025 65,720 2026 44,647 2027 21,008 2028 13,234 Thereafter 40,365 Total future minimum lease payments 321,285 Less: Amount representing interest 34,166 Total future minimum lease payments, net of interest $ 287,119

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Changes in Fair Value	The table below presents a summary of the changes in fair value for these liabilities. Three Months Ended Six Months Ended (in thousands) 2023 2022 2023 2022 Beginning balance $ 10,533 $ 23,399 $ 13,496 $ 25,156 New acquisitions and revaluations 38,731 1,574 40,031 2,750 Payouts (252) (2,145) (4,350) (5,196) Interest on outstanding contingencies 1,084 122 1,106 247 Charge offset, forfeit and other (788) (208) (975) (215) Ending balance $ 49,308 $ 22,742 $ 49,308 $ 22,742

DERIVATIVE INSTRUMENTS AND HE_2

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	6 Months Ended
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Outstanding FX Forwards	As of June 30, 2023, the Company had the following outstanding FX Forwards (in thousands except for number of instruments): Non-Designated Derivative Summary FX Forward Contracts Number of Sell Buy Sell AUD/Buy USD Fwd Contract 19 2,350 $ 1,570 Sell CAD/Buy USD Fwd Contract 19 19,000 14,155 Total 38 $ 15,725

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	6 Months Ended
STOCKHOLDERS’ EQUITY (Tables)	Jun. 30, 2023
Equity [Abstract]
Schedule of 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 Six Months Ended (in thousands) 2023 2022 2023 2022 Restricted shares and PSUs: Pre-tax compensation expense $ 6,192 $ 4,819 $ 11,948 $ 10,957 Tax benefit (1,687) (1,272) (3,083) (2,596) Compensation expense, net of tax $ 4,505 $ 3,547 $ 8,865 $ 8,361
Schedule of Information on Unvested Restricted Stock Outstanding	The following table summarizes information on unvested awards outstanding as of June 30, 2023: (number of shares in thousands) Number of Weighted Unvested restricted shares and PSUs at December 31, 2022 2,685 $ 28.97 Forfeited (59) 29.54 Vested (820) 26.88 Granted 671 36.48 Unvested restricted shares and PSUs at June 30, 2023 2,477 $ 31.68

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
EARNINGS PER SHARE (Tables)	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of Reconciliation of Weighted Average Shares Outstanding	A reconciliation of weighted average shares outstanding is as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Weighted-average outstanding common shares 490,168 489,741 490,058 489,679 Add participating securities: Weighted-average time-lapse restricted awards 2,532 2,586 2,535 2,591 Total weighted-average shares outstanding - basic 492,700 492,327 492,593 492,270 Dilutive effect of restricted stock units and PSUs 191 113 171 112 Weighted-average shares outstanding - diluted 492,891 492,440 492,764 492,382

BASIS OF PREPARATION - Narrativ

BASIS OF PREPARATION - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
BASIS OF PREPARATION - Narrative (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) segment unit	Jun. 30, 2022 USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Number of operating segments \| segment			2
Number of reporting units \| unit			2
Number of reportable segments \| segment			1
Provision for income taxes	$ 40,880	$ 34,088	$ 69,135	$ 54,423
Revision of Prior Period, Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Depreciation and amortization expense		(1,700)		(3,400)
Provision for income taxes		$ 400		$ 800

ACQUISITIONS - Narrative (Detai

ACQUISITIONS - Narrative (Details) $ in Thousands		3 Months Ended	6 Months Ended
ACQUISITIONS - Narrative (Details) $ in Thousands	Apr. 01, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($) business	Apr. 03, 2023 USD ($)
Business Acquisition [Line Items]
Long-term line of credit				$ 305,000
Number of businesses acquired \| business			14
Customer contracts, net
Business Acquisition [Line Items]
Useful life of customer contracts		7 years	7 years
FPC Holdings, LLC
Business Acquisition [Line Items]
Percentage of voting interests acquired	100%
Contributed revenues	$ 39,400
Net earnings	2,200
Assets acquired and liabilities assumed		$ 339,286	$ 339,286
Contingent consideration transferred	$ 302,800
Earnout liabilities		(28,000)	(28,000)
Contingent consideration		8,400	8,400
Adjustments fair value contingent consideration		(1,000)
2023 Acquisitions
Business Acquisition [Line Items]
Assets acquired and liabilities assumed		33,366	33,366
Contingent consideration		$ 3,600	$ 3,600

ACQUISITIONS - Assets Acquired

ACQUISITIONS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill	$ 1,045,997	$ 846,704	$ 786,504
FPC Holdings, LLC
Business Acquisition [Line Items]
Cash	4,366
Accounts receivable	1,542
Materials and supplies	431
Operating lease right-of-use assets	8,689
Other current assets	487
Goodwill	187,655
Customer contracts	118,000
Current liabilities	(5,051)
Unearned revenue	(6,144)
Operating lease liabilities	(8,689)
Assets acquired and liabilities assumed	339,286
FPC Holdings, LLC \| Trademarks & tradenames, net
Business Acquisition [Line Items]
Other intangible assets	38,000
2023 Acquisitions
Business Acquisition [Line Items]
Cash	249
Accounts receivable	287
Materials and supplies	201
Other current assets	49
Equipment and property	2,311
Goodwill	11,540
Current liabilities	(163)
Unearned revenue	(861)
Other assets and liabilities, net	(693)
Assets acquired and liabilities assumed	33,366
2023 Acquisitions \| Customer contracts, net
Business Acquisition [Line Items]
Customer contracts	20,163
2023 Acquisitions \| Other intangible assets, net
Business Acquisition [Line Items]
Other intangible assets	$ 283

ACQUISITIONS - Schedule of Busi

ACQUISITIONS - Schedule of Business Acquisition, Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Revenues	$ 820,750	$ 745,838	$ 1,507,673	$ 1,360,062
Net income	$ 109,564	$ 99,549	$ 191,999	$ 169,921

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 820,750	$ 714,049	$ 1,478,765	$ 1,304,729
United States
Disaggregation of Revenue [Line Items]
Revenues	763,646	661,703	1,372,654	1,208,163
Other countries
Disaggregation of Revenue [Line Items]
Revenues	$ 57,104	$ 52,346	$ 106,111	$ 96,566

REVENUE - Significant Product A

REVENUE - Significant Product And Service Offerings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 820,750	$ 714,049	$ 1,478,765	$ 1,304,729
Residential revenue
Disaggregation of Revenue [Line Items]
Revenues	385,645	325,311	669,270	584,570
Commercial revenue
Disaggregation of Revenue [Line Items]
Revenues	259,964	234,483	490,366	440,270
Termite completions, bait monitoring, & renewals
Disaggregation of Revenue [Line Items]
Revenues	166,823	146,781	303,428	266,487
Franchise revenues
Disaggregation of Revenue [Line Items]
Revenues	4,303	4,155	8,090	7,892
Other revenues
Disaggregation of Revenue [Line Items]
Revenues	$ 4,015	$ 3,319	$ 7,611	$ 5,510

REVENUE - Changes in Unearned R

REVENUE - Changes in Unearned Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Contract with Customer, Liability [Roll Forward]
Beginning balance	$ 198,154	$ 180,333	$ 187,994	$ 168,607
Deferral of unearned revenue	77,911	63,628	143,537	125,263
Recognition of unearned revenue	(57,791)	(50,989)	(113,257)	(100,898)
Ending balance	218,274	$ 192,972	218,274	$ 192,972
Long-term unearned revenue	$ 35,000		$ 35,000		$ 29,900
Unearned long-term revenue recognized period			5 years

ALLOWANCE FOR CREDIT LOSSES (De

ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, percentage of finance subject to credit score					100%
Accounts and Financing Receivable, after Allowance for Credit Loss, Current and Noncurrent [Roll Forward]
Beginning Balance	$ 17,952	$ 19,041	$ 18,020	$ 17,870	$ 19,041
Provision for expected credit losses	6,050	3,896	4,175	4,258
Write-offs charged against the allowance	(6,603)	(6,614)	(5,339)	(5,437)
Recoveries collected	1,349	1,629	1,364	1,329
Ending Balance	18,748	17,952	18,220	18,020	18,748
Trade Receivables
Accounts and Financing Receivable, after Allowance for Credit Loss, Current and Noncurrent [Roll Forward]
Beginning Balance	12,476	14,073	14,170	13,885	14,073
Provision for expected credit losses	3,185	1,461	2,350	3,204
Write-offs charged against the allowance	(4,271)	(4,687)	(4,218)	(4,248)
Recoveries collected	1,349	1,629	1,364	1,329
Ending Balance	12,739	12,476	13,666	14,170	12,739
Financed Receivables
Accounts and Financing Receivable, after Allowance for Credit Loss, Current and Noncurrent [Roll Forward]
Beginning Balance	5,476	4,968	3,850	3,985	4,968
Provision for expected credit losses	2,865	2,435	1,825	1,054
Write-offs charged against the allowance	(2,332)	(1,927)	(1,121)	(1,189)
Recoveries collected	0		0
Ending Balance	$ 6,009	$ 5,476	$ 4,554	$ 3,850	$ 6,009

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 846,704	$ 786,504
Additions	199,195	64,997
Measurement adjustments	(294)	(9)
Adjustments due to currency translation	392	(4,788)
Goodwill, ending balance	$ 1,045,997	$ 846,704

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 1,045,997		$ 1,045,997		$ 846,704	$ 786,504
Intangible assets, net	563,674		563,674		418,748
Amortization expense	18,000	$ 13,900	32,000	$ 27,400
Other countries
Finite-Lived Intangible Assets [Line Items]
Goodwill	100,600		100,600		97,400
Other countries \| Trademarks & tradenames, net
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	4,000		4,000		4,200
Other countries \| Customer contracts, net
Finite-Lived Intangible Assets [Line Items]
Goodwill	46,500		46,500		46,100
Other countries \| Other intangible assets, net
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 500		$ 500		$ 700

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS - Components of Indefinite-lived and Amortizable Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross	$ 659,636	$ 543,170
Accumulated Amortization	(236,859)	(230,953)
Carrying Value	422,777	312,217
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Indefinite-lived intangible assets	140,897	106,531
Total customer contracts and other intangible assets	563,674	418,748
Trademarks & tradenames, net
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Indefinite-lived intangible assets	138,670	104,304
Internet domains
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Indefinite-lived intangible assets	2,227	2,227
Customer contracts, net
Finite-Lived Intangible Assets [Line Items]
Gross	618,743	502,689
Accumulated Amortization	(211,538)	(204,130)
Carrying Value	$ 407,205	$ 298,559
Useful Life in Years	7 years
Customer contracts, net \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Life in Years	3 years	3 years
Customer contracts, net \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Life in Years	20 years	20 years
Trademarks & tradenames, net
Finite-Lived Intangible Assets [Line Items]
Gross	$ 18,165	$ 17,351
Accumulated Amortization	(7,934)	(10,009)
Carrying Value	$ 10,231	$ 7,342
Trademarks & tradenames, net \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Life in Years	7 years	7 years
Trademarks & tradenames, net \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Life in Years	20 years	20 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross	$ 13,849	$ 14,180
Accumulated Amortization	(8,646)	(8,226)
Carrying Value	$ 5,203	$ 5,954
Non-compete agreements \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Life in Years	3 years	3 years
Non-compete agreements \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Life in Years	20 years	20 years
Patents
Finite-Lived Intangible Assets [Line Items]
Gross	$ 6,896	$ 6,934
Accumulated Amortization	(6,881)	(6,802)
Carrying Value	$ 15	$ 132
Patents \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Life in Years	3 years	3 years
Patents \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Life in Years	15 years	15 years
Other intangible assets, net
Finite-Lived Intangible Assets [Line Items]
Gross	$ 1,983	$ 2,016
Accumulated Amortization	(1,860)	(1,786)
Carrying Value	$ 123	$ 230
Useful Life in Years	10 years	10 years

GOODWILL AND INTANGIBLE ASSET_5

GOODWILL AND INTANGIBLE ASSETS - Estimated Amortization Expense (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (excluding the six months ended June 30, 2023)	$ 45,467
2024	75,662
2025	66,856
2026	63,339
2027	$ 59,674

LEASES - Narrative (Details)

LEASES - Narrative (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Lessor, Lease, Description [Line Items]
Future minimum lease payments	$ 321,285
Lease not yet commenced, future minimum payments due	11,900
Building
Lessor, Lease, Description [Line Items]
Future minimum lease payments	$ 164,400
Building \| Minimum
Lessor, Lease, Description [Line Items]
Term of contract	5 years
Building \| Maximum
Lessor, Lease, Description [Line Items]
Term of contract	15 years
Vehicles
Lessor, Lease, Description [Line Items]
Term of contract	1 year
Future minimum lease payments	$ 156,900
Vehicles \| Maximum
Lessor, Lease, Description [Line Items]
Term of contract	7 years

LEASES - Operating Lease Costs

LEASES - Operating Lease Costs and Other Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Lessee, Operating Lease, Description [Abstract]
Short-term lease cost	$ 81	$ 36	$ 148	$ 62
Operating lease cost	27,480	23,615	53,667	47,638
Total lease expense	$ 27,561	$ 23,651	$ 53,815	$ 47,700
Other Information:
Weighted-average remaining lease term - operating leases	4 years 10 months 24 days	5 years 4 months 24 days	4 years 10 months 24 days	5 years 4 months 24 days
Weighted-average discount rate - operating leases	3.82%	3.34%	3.82%	3.34%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$ 53,212	$ 47,099

LEASES - Future Minimum Lease P

LEASES - Future Minimum Lease Payments (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Lessee, Operating Lease, Description [Abstract]
2023 (excluding the six months ended June 30, 2023)	$ 51,531
2024	84,780
2025	65,720
2026	44,647
2027	21,008
2028	13,234
Thereafter	40,365
Total future minimum lease payments	321,285
Less: Amount representing interest	34,166
Total future minimum lease payments, net of interest	$ 287,119

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2022	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized losses	$ (100)	$ (400)	$ (1,000)
Fair Value, Recurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquisition holdback and earn out liabilities	49,308	$ 22,742	$ 22,742	$ 10,533	$ 13,496	$ 23,399	$ 25,156
Bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	10,100				10,700
Bonds \| Other Current Assets \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	800				500
Bonds \| Other Assets \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	$ 9,300				$ 10,200

FAIR VALUE MEASUREMENTS - Chang

FAIR VALUE MEASUREMENTS - Changes in Fair Value (Details) - Fair Value, Recurring - Level 3 - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 10,533	$ 23,399	$ 13,496	$ 25,156
New acquisitions and revaluations	38,731	1,574	40,031	2,750
Payouts	(252)	(2,145)	(4,350)	(5,196)
Interest on outstanding contingencies	1,084	122	1,106	247
Charge offset, forfeit and other	(788)	(208)	(975)	(215)
Ending balance	$ 49,308	$ 22,742	$ 49,308	$ 22,742

DEBT (Details)

DEBT (Details)		6 Months Ended
DEBT (Details)	Feb. 24, 2023 USD ($)	Jun. 30, 2023 USD ($)	Apr. 03, 2023 USD ($)	Dec. 31, 2022 USD ($)
Line of Credit Facility [Line Items]
Long-term line of credit			$ 305,000,000
Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit outstanding		$ 71,700,000		$ 71,300,000
Revolving Credit Agreement
Line of Credit Facility [Line Items]
Current borrowing capacity	$ 1,000,000,000
Foreign currency sublimit	400,000,000
Letters of credit outstanding	$ 150,000,000
Leverage ratio	0
Long-term line of credit		340,000,000
Unamortized debt issuance costs		$ 2,500,000
Effective interest rate		6.50%
Revolving Credit Agreement \| Interest Rate Floor
Line of Credit Facility [Line Items]
Variable interest rate	0%
Revolving Credit Agreement \| Fed Funds Effective Rate Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Variable interest rate	0.50%
Revolving Credit Agreement \| One Month Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Variable interest rate	0.10%
Revolving Credit Agreement \| One Month Secured Overnight Financing Rate (SOFR) \| Minimum
Line of Credit Facility [Line Items]
Variable interest rate	0%
Revolving Credit Agreement \| One Month Secured Overnight Financing Rate (SOFR) \| Maximum
Line of Credit Facility [Line Items]
Variable interest rate	0.50%
Revolving Credit Agreement \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Minimum
Line of Credit Facility [Line Items]
Leverage ratio	0.0100
Revolving Credit Agreement \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Maximum
Line of Credit Facility [Line Items]
Leverage ratio	0.0150
Revolving Credit Agreement \| Swing line Loans
Line of Credit Facility [Line Items]
Letters of credit outstanding	$ 50,000,000
Revolving Credit Agreement \| Tranches Term Loan
Line of Credit Facility [Line Items]
Available increase in borrowing capacity	$ 750,000,000
Revolving Credit Agreement \| 2019 Credit Agreement
Line of Credit Facility [Line Items]
Long-term line of credit				$ 54,900,000
Effective interest rate				5.10%
Credit Agreement
Line of Credit Facility [Line Items]
Leverage ratio		3.50
Covenant leverage ratio		4

DERIVATIVE INSTRUMENTS AND HE_3

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Foreign Exchange Forward \| Other Current Assets
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Fair value of asset	$ 0.2	$ 0.3

DERIVATIVE INSTRUMENTS AND HE_4

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) $ in Thousands, $ in Thousands	Jun. 30, 2023 AUD ($) instrument	Jun. 30, 2023 USD ($) instrument	Jun. 30, 2023 CAD ($) instrument
Not Designated as Hedging Instrument
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Number of Instruments \| instrument	38	38	38
Buy Notional		$ 15,725
Sell AUD/Buy USD Fwd Contract
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Number of Instruments \| instrument	19	19	19
Sell Notional	$ 2,350
Buy Notional		$ 1,570
Sell CAD/Buy USD Fwd Contract
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Number of Instruments \| instrument	19	19	19
Sell Notional			$ 19
Buy Notional		$ 14,155

STOCKHOLDERS' EQUITY - Narrativ

STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Class of Stock [Line Items]
Payment of dividends				$ 127,996	$ 98,434
Dividends paid (in USD per share)	$ 0.13		$ 0.10	$ 0.26	$ 0.20
Stock repurchased during period	$ 400		$ 600	$ 11,800	$ 7,000
Shares reserved for issuance (in shares)	5.3			5.3
Kicker Awards \| Executive Officer
Class of Stock [Line Items]
Vesting period		3 years
Restricted Shares and Performance Shares
Class of Stock [Line Items]
Unrecognized compensation cost	$ 64,200			$ 64,200		$ 52,300
Share-based payment arrangement, nonvested award, cost not yet recognized, weighted average period				3 years 3 months 18 days		3 years 6 months
Pre-tax compensation expense	6,192		$ 4,819	$ 11,948	$ 10,957
Employee Stock
Class of Stock [Line Items]
Pre-tax compensation expense	$ 200			$ 400
Granted In 2023 \| Restricted Stock
Class of Stock [Line Items]
Share based payment award vesting rights percentage				25%
Vesting period				4 years
Granter Prior To 2023 \| Restricted Stock \| Minimum
Class of Stock [Line Items]
Vesting period						5 years
Granter Prior To 2023 \| Restricted Stock \| Maximum
Class of Stock [Line Items]
Vesting period						6 years

STOCKHOLDERS' EQUITY - Componen

STOCKHOLDERS' EQUITY - Components of Stock-based Compensation (Details) - Restricted Shares and Performance Shares - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Payment Arrangement, Additional Disclosure [Abstract]
Pre-tax compensation expense	$ 6,192	$ 4,819	$ 11,948	$ 10,957
Tax benefit	(1,687)	(1,272)	(3,083)	(2,596)
Compensation expense, net of tax	$ 4,505	$ 3,547	$ 8,865	$ 8,361

STOCKHOLDERS' EQUITY - Unvested

STOCKHOLDERS' EQUITY - Unvested Restricted Stock Outstanding (Details) - Restricted Shares and Performance Shares shares in Thousands	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Number of Shares
Balance beginning of the period (in shares) \| shares	2,685
Forfeited (in shares) \| shares	(59)
Vested (in shares) \| shares	(820)
Granted (in shares) \| shares	671
Balance end of the period (in shares) \| shares	2,477
Weighted Average Grant-Date Fair Value
Balance beginning of the period (in USD per share) \| $ / shares	$ 28.97
Forfeited (in USD per share) \| $ / shares	29.54
Vested (in USD per share) \| $ / shares	26.88
Granted (in USD per share) \| $ / shares	36.48
Balance end of the period (in USD per share) \| $ / shares	$ 31.68

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
EARNINGS PER SHARE (Details) - shares shares in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Weighted-average outstanding common shares (in shares)	490,168	489,741	490,058	489,679
Add participating securities:
Weighted-average time-lapse restricted awards (in shares)	2,532	2,586	2,535	2,591
Total weighted-average shares outstanding - basic (in shares)	492,700	492,327	492,593	492,270
Dilutive effect of restricted stock units and PSUs (in shares)	191	113	171	112
Weighted-average shares outstanding - diluted (in shares)	492,891	492,440	492,764	492,382

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Income taxes
Provision for income taxes	$ 40,880	$ 34,088	$ 69,135	$ 54,423
Effective income tax rate	27.10%	25.10%	25.80%	23.70%
Other Assets
Income taxes
Deferred income tax assets	$ 700		$ 700		$ 1,800
Other long-term accrued liabilities
Income taxes
Deferred income tax liabilities	$ 26,000		$ 26,000		$ 24,200

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Millions	Jun. 05, 2023 USD ($) offer
L O R Inc Member
Related Party Transaction [Line Items]
Number Of offerings pursuant to agreement \| offer	8
Control Group \| L O R Inc Member
Related Party Transaction [Line Items]
Subsidiary, ownership percentage, parent	50%
Registration Rights Agreement \| Investor
Related Party Transaction [Line Items]
Number Of offerings pursuant to agreement \| offer	5
Payment to related party for execution of the LOR \| $	$ 1.5
Additional payment to related party \| $	$ 3.5

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)	Jul. 25, 2023 $ / shares
Subsequent Event
Subsequent Event [Line Items]
Dividends declared (in USD per share)	$ 0.13