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

Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2011

	December 31,

(in thousands)	2011		2010			2009

Current:
Federal	$	48,505	$	40,250		$	39,636
State		7,723		8,494			6,802
Foreign		3,373		2,724			3,324
Benefit from valuation allowance releases		—		—			(7,889	)
Deferred:
Federal		191		2,355			(143	)
State		528		625			626
Foreign		65		(905	)		(49	)

Total income tax provision	$	60,385	$	53,543		$	42,307

Schedule of primary factors causing income tax expense to be different than the federal statutory rate

	December 31,

(in thousands)	2011			2010			2009

Income tax at statutory rate	$	56,384		$	50,241		$	44,202
State income tax expense (net of federal benefit)		5,477			4,688			4,873
Foreign tax expense (benefit)		(2,109	)		(1,804	)		301
Valuation allowance		—			—			(7,889	)
Other		633			418			820

Total income tax provision	$	60,385		$	53,543		$	42,307

Schedule of significant components of the deferred tax assets and liabilities

	December 31,

(in thousands)	2011			2010

Deferred tax assets:
Termite Accrual	$	3,068		$	2,522
Insurance and Contingencies		23,752			20,968
Unearned Revenues		13,988			13,330
Compensation and Benefits		11,484			8,410
Net Pension Liability		12,333			4,818
State and Foreign Operating Loss Carryforwards		8,981			8,426
Bad Debt Reserve		3,135			3,176
Other		1,605			1,723
Valuation allowance		(1,646	)		(810	)

Total Deferred Tax Assets		76,700			62,563

Deferred tax liabilities:
Depreciation and Amortization		(7,097	)		(6,373	)
Foreign Currency Translation		(3,200	)		(3,617	)
Intangibles and Other		(12,527	)		(10,071	)

Total Deferred tax Liabilities		(22,824	)		(20,061	)

Net Deferred Tax Assets	$	53,876		$	42,502

Schedule of valuation allowance

	December 31,

(in thousands)	2011		2010

Valuation allowance at beginning of year	$	810	$	—
Increase/(decrease) in valuation allowance		836		810

Valuation allowance at end of year	$	1,646	$	810

Reconciliation of the beginning and ending amount of unrecognized tax benefits

	December 31,

(in thousands)	2011			2010

Balance at Beginning of Year	$	2,566		$	2,430
Additions based on tax positions related to current year		43			1,283
Additions for tax positions of prior years		511			127
Reductions for tax positions of prior years		(988	)		—
Settlements		(123	)		(1,274	)
Expiration of statute of limitation		—			—

Balance at End of Year	$	2,009		$	2,566

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References + Details

- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

+ References + Details