Rollins, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk

As of September 30, 2019, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollar amounts in thousands):

	Number of		Notional
Interest Rate Derivative	Instruments		Amount
Interest Rate Floors		1	$	90,000

The Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income:

Derivatives in Subtopic
815-20 Hedging	Amount of Gain or (Loss)
Relationships	Recognized in OCI on Derivative
	Three Months Ended September 30,					Nine Months Ended September 30,
Derivatives in Cash Flow Hedging Relationships	2019			2018		2019			2018
Interest Rate Products	$	(118	)	$	—	$	(375	)	$	—
Total	$	(118	)	$	—	$	(375	)	$	—

fair value of the Company's derivative financial instruments

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the balance sheet as of September 30, 2019 and December 31, 2018 (in thousands):

	Tabular Disclosure of Fair Values of Derivative Instruments
	Derivative Assets				Derivative Liabilities
			Fair Value as of:
Derivatives Not Designated as Hedging Instruments	September 30, 2019		December 31, 2018		September 30, 2019			December 31, 2018
FX Forward Contracts						(375)
Balance Sheet Location	Other Current Assets		Other Current Assets		Other Current Liabilities			Other Current Liabilities
Sell AUD/Buy USD Fwd Contract	$	3	$	18	$	(1	)	$	(1	)
Sell CAD/Buy USD Fwd Contract		39		121		(32	)		(4	)
Total	$	42	$	139	$	(33	)	$	(5	)

Effect of Derivative Instruments on the Income Statement

Effect of Derivative Instruments on the Income Statement for Derivatives Designated as Hedging Instruments

		Amount of Gain or (Loss) Recognized in Income
Derivatives Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income	Three Months Ended September 30,				Nine Months Ended September 30,
		2019		2018		2019		2018
Swap	Other inc/(exp)	$	77	$	—	$	78	$	—
Total		$	77	$	—	$	78	$	—

Effect of Derivative Instruments on the Income Statement for Derivatives Not Designated as Hedging Instruments

		Amount of Gain or (Loss) Recognized in Income
Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income	Three Months Ended September 30,					Nine Months Ended September 30,
		2019		2018			2019			2018
Sell AUD/Buy USD Fwd Contract	Other inc/(exp)	$	1	$	9		$	1		$	47
Sell CAD/Buy USD Fwd Contract	Other inc/(exp)		66		(81	)		(91	)		178
Total		$	67	$	(72	)	$	(90	)	$	225

total fair value classification within the fair value hierarchy for the complete portfolio of derivative transactions

The table below presents the total fair value classification within the fair value hierarchy for the complete portfolio of derivative transactions at September 30, 2019 and September 30, 2018 (in thousands):

	Recurring Fair Value Measurements
	Quoted Prices in Active
	Markets for Identical				Significant Other						Significant Unobservable
	Assets and Liabilities				Observable Inputs						Inputs
	at September 30,				at September 30,						at September 30,				Total Fair Value
	(Level 1)				(Level 2)						(Level 3)				at September 30,
	2019		2018		2019			2018			2019		2018		2019			2018
Assets
Derivative Financial Instruments	$	—	$	—	$	42		$	32		$	—	$	—	$	42		$	32
Liabilities
Derivative Financial Instruments	$	—	$	—	$	(33	)	$	(41	)	$	—	$	—	$	(33	)	$	(41	)