Annual report pursuant to Section 13 and 15(d)

SEGMENT AND GEOGRAPHIC INFORMATION

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SEGMENT AND GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION SEGMENT AND GEOGRAPHIC INFORMATION
The Company operates under one reportable segment which contains our residential, commercial, and termite service offerings. The Company's chief operating decision maker ("CODM") is the chief executive officer. The CODM uses net income to assess financial performance and allocate resources. This financial metric is used by the CODM to make key operating decisions, such as the determination of the rate of growth investments and the allocation of budget between cost categories. The measure of segment assets is reported on the balance sheet as total consolidated assets.
The following table presents selected financial information with respect to the Company’s single reportable segment for the years ended December 31:


(in thousands) 2024 2023 2022
Revenue $ 3,388,708  $ 3,073,278  $ 2,695,823 
Less:
Cost of services provided (exclusive of depreciation and amortization below):
Employee expenses 1,048,992  953,600  850,615 
Materials and supplies 212,296  197,825  175,402 
Insurance and claims 68,326  60,390  50,726 
Fleet expenses 131,898  127,390  117,035 
Other cost of services provided (1)
141,685  130,666  114,621 
Total cost of services provided (exclusive of depreciation and amortization below) 1,603,197  1,469,871  1,308,399 
Sales, general and administrative:
Selling and marketing expenses 427,916  375,805  324,935 
Administrative employee expenses 313,814  291,772  263,547 
Insurance and claims 41,434  37,946  30,464 
Fleet expenses 33,580  31,415  29,686 
Other sales, general and administrative (2)
198,323  178,295  154,078 
Total sales, general and administrative 1,015,067  915,233  802,710 
Restructuring costs —  5,196  — 
Depreciation and amortization 113,220  99,752  91,326 
Interest expense, net 27,677  19,055  2,638 
Other income, net (683) (22,086) (8,167)
Income tax expense 163,851  151,300  130,318 
Net income $ 466,379  $ 434,957  $ 368,599 

1) Other cost of services provided includes facilities costs, professional services, maintenance and repairs, software license costs, and other expenses directly related to providing services.
2) Other sales, general and administrative includes facilities costs, professional services, maintenance and repairs, software license costs, bad debt expense, and other administrative expenses.

See the consolidated financial statements for other financial information regarding the Company’s reportable segment. See Note 3, Revenue for further information on revenue.

The Company's long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the consolidated statements of financial position were located as follows:

December 31, 2024 2023
(in thousands)
United States $ 503,767  $ 422,340 
International 35,546  27,711