EMPLOYEE BENEFIT PLANS (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Retirement Benefits [Abstract] |
|
| Schedule of funded status of the Plans |
The funded status of the Plans and the net amount recognized in the statement of financial position are summarized as follows as of:
|
|
|
|
|
|
|
|
|
December 31, |
2017 |
|
2016 |
(in thousands) |
|
|
|
CHANGE IN ACCUMULATED BENEFIT OBLIGATION |
|
|
|
|
|
Accumulated benefit obligation at beginning of year |
$ |
197,222 |
|
|
$ |
200,375 |
|
Service cost |
58 |
|
|
71 |
|
Interest cost |
8,493 |
|
|
9,331 |
|
Actuarial (gain) loss |
6,762 |
|
|
6,079 |
|
Benefits paid |
(10,225 |
) |
|
(18,634 |
) |
Accumulated Benefit obligation at end of year |
202,310 |
|
|
197,222 |
|
CHANGE IN PLAN ASSETS |
|
|
|
|
|
Market value of plan assets at beginning of year |
194,342 |
|
|
190,640 |
|
Actual return on plan assets |
35,788 |
|
|
19,080 |
|
Employer contribution |
— |
|
|
3,256 |
|
Benefits paid |
(10,225 |
) |
|
(18,634 |
) |
Fair value of plan assets at end of year |
219,905 |
|
|
194,342 |
|
Funded status |
$ |
17,595 |
|
|
$ |
(2,880 |
) |
|
| Schedule of amounts recognized in the statement of financial position |
|
|
|
|
|
|
|
|
|
Amounts Recognized in the Statement of Financial Position consist of: |
|
|
December 31, |
2017 |
|
2016 |
(in thousands) |
|
|
|
|
|
Noncurrent assets/(liabilities) |
$ |
17,595 |
|
|
$ |
(2,880 |
) |
|
| Schedule of amounts recognized in accumulated other comprehensive income |
|
|
|
|
|
|
|
|
|
Amounts Recognized in Accumulated Other Comprehensive Income consists of: |
December 31, |
2017 |
|
2016 |
(in thousands) |
|
|
|
|
|
Net actuarial loss |
$ |
61,598 |
|
|
$ |
80,662 |
|
|
| Schedule of weighted-average assumptions used |
The following weighted-average assumptions were used to determine the accumulated benefit obligation and net benefit cost:
|
|
|
|
|
|
|
|
|
|
December 31, |
2017 |
|
2016 |
|
2015 |
ACCUMULATED BENEFIT OBLIGATION |
|
|
|
|
|
|
|
|
Discount rate |
4.00 |
% |
|
4.45 |
% |
|
4.70 |
% |
Rate of compensation increase |
N/A |
|
|
N/A |
|
|
N/A |
|
NET BENEFIT COST |
|
|
|
|
|
|
|
|
Discount rate |
4.45 |
% |
|
4.70 |
% |
|
4.15 |
% |
Expected return on plan assets |
7.00 |
% |
|
7.00 |
% |
|
7.00 |
% |
Rate of compensation increase |
N/A |
|
|
N/A |
|
|
N/A |
|
|
| Schedule of net periodic benefit cost and other amounts recognized in other comprehensive income |
The components of net periodic benefit cost are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
2017 |
|
2016 |
|
2015 |
(in thousands) |
|
|
|
|
|
Service cost |
$ |
58 |
|
|
$ |
71 |
|
|
$ |
86 |
|
Interest cost |
8,493 |
|
|
9,331 |
|
|
8,915 |
|
Expected return on plan assets |
(13,368 |
) |
|
(13,219 |
) |
|
(12,788 |
) |
Amortization of net loss |
3,322 |
|
|
3,263 |
|
|
3,761 |
|
Preliminary net periodic benefit cost/(income) |
$ |
(1,495 |
) |
|
$ |
(554 |
) |
|
$ |
(26 |
) |
Settlement expense |
53 |
|
|
— |
|
|
— |
|
Net periodic benefit cost |
$ |
(1,442 |
) |
|
$ |
(554 |
) |
|
$ |
(26 |
) |
|
| Schedule of weighted average asset allocation along with target allocation |
The benefit obligations recognized in other comprehensive income for the years ended December 31, 2017, 2016, and 2015 are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
2017 |
|
2016 |
|
2015 |
Pretax (income)/loss |
$ |
(15,650 |
) |
|
$ |
218 |
|
|
$ |
(11,035 |
) |
Amortization of net loss |
(3,322 |
) |
|
(3,263 |
) |
|
(3,761 |
) |
Total recognized in other comprehensive income |
(18,972 |
) |
|
(3,045 |
) |
|
(14,796 |
) |
Total recognized in net periodic benefit (income)/cost and other comprehensive income |
$ |
(20,414 |
) |
|
$ |
(3,599 |
) |
|
$ |
(14,822 |
) |
|
| Schedule of plan assets using the fair value hierarchy |
The Plans’ weighted average asset allocation at December 31, 2017 and 2016 by asset category, along with the target allocation for 2018, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Target
allocations for
|
|
Percentage of plan assets as of
December 31,
|
Asset category |
2018 |
|
2017 |
|
2016 |
Cash and cash equivalents |
0.0 |
% |
- |
5.0% |
|
2.4 |
% |
|
3.5 |
% |
Equity securities - Rollins stock |
0.0 |
% |
- |
40.0% |
|
14.7 |
% |
|
20.7 |
% |
Domestic equity - all other |
0.0 |
% |
- |
40.0% |
|
21.8 |
% |
|
21.7 |
% |
International equity |
0.0 |
% |
- |
30.0% |
|
16.4 |
% |
|
21.0 |
% |
Debt securities - core fixed income |
15.0 |
% |
- |
50.0% |
|
35.2 |
% |
|
23.5 |
% |
Real estate |
0.0 |
% |
- |
20.0% |
|
6.5 |
% |
|
6.4 |
% |
Alternative/Opportunistic/Special |
0.0 |
% |
- |
20.0% |
|
3.0 |
% |
|
3.2 |
% |
Total |
|
|
|
|
|
100.0 |
% |
|
100.0 |
% |
|
| Schedule of reconciliation of level 3 assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
Total |
|
Level 1 |
|
Level 2 |
|
NAV |
(1) Cash and cash equivalents |
$ |
6,834 |
|
|
$ |
6,834 |
|
|
$ |
— |
|
|
$ |
— |
|
(2) Fixed income securities |
45,673 |
|
|
— |
|
|
45,673 |
|
|
— |
|
Domestic equity securities |
|
|
|
|
|
|
|
|
|
|
|
Rollins, Inc. stock |
42,120 |
|
|
42,120 |
|
|
— |
|
|
— |
|
Other securities |
40,178 |
|
|
11,614 |
|
|
28,564 |
|
|
— |
|
(3) International equity securities |
40,767 |
|
|
— |
|
|
40,767 |
|
|
— |
|
(4) Real estate |
12,527 |
|
|
— |
|
|
— |
|
|
12,527 |
|
(5) Alternative/opportunistic/special |
6,243 |
|
|
— |
|
|
— |
|
|
6,243 |
|
Total |
$ |
194,342 |
|
|
$ |
60,568 |
|
|
$ |
115,004 |
|
|
$ |
18,770 |
|
|
|
(1) |
Cash and cash equivalents, which are used to pay benefits and plan administrative expenses, are held in Rule 2a-7 money market funds. |
|
|
(2) |
Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. |
|
|
(3) |
International equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. |
|
|
(4) |
Real estate fund values are primarily reported by the fund manager and are based on valuation of the underlying investments, which include inputs such as cost, discounted future cash flows, independent appraisals and market based comparable data. |
|
|
(5) |
Alternative/Opportunistic/Special funds can invest across the capital structure in both liquid and illiquid securities that are valued using a market approach based on the quoted market prices of identical instruments, or if no market price is available, instruments will be held at their fair market value (which may be cost) as reasonably determined by the investment manager, independent dealers, or pricing services. |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
Total |
|
Level 1 |
|
Level 2 |
|
NAV |
(1) Cash and cash equivalents |
$ |
5,432 |
|
|
$ |
5,432 |
|
|
|
|
|
|
|
(2) Fixed income securities |
77,214 |
|
|
|
|
|
77,214 |
|
|
|
|
Domestic equity securities |
|
|
|
|
|
|
|
|
|
|
|
Rollins, Inc. stock |
32,049 |
|
|
32,049 |
|
|
|
|
|
|
|
Other securities |
48,511 |
|
|
16,243 |
|
|
32,268 |
|
|
|
|
(3) International equity securities |
36,156 |
|
|
|
|
|
36,156 |
|
|
|
|
(4) Real estate |
14,074 |
|
|
|
|
|
|
|
|
14,074 |
|
(5) Alternative/opportunistic/special |
6,469 |
|
|
|
|
|
|
|
|
6,469 |
|
Total |
$ |
219,905 |
|
|
$ |
53,724 |
|
|
$ |
145,638 |
|
|
$ |
20,543 |
|
|
| Schedule of estimated future benefit payments |
The estimated future benefit payments over the next five years are as follows:
|
|
|
|
|
(in thousands) |
|
2018 |
$ |
11,500 |
|
2019 |
11,798 |
|
2020 |
12,105 |
|
2021 |
12,342 |
|
2022 |
12,597 |
|
Thereafter |
63,788 |
|
Total |
$ |
124,130 |
|
|
| Schedule of estimated life insurance premium payments |
The estimated life insurance premium payments over the next five years are as follows:
|
|
|
|
|
(in thousands) |
|
2018 |
$ |
590 |
|
2019 |
614 |
|
2020 |
638 |
|
2021 |
664 |
|
2022 |
690 |
|
Total |
$ |
3,196 |
|
|