rol-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________________

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-4422

ROLLINS, INC.

(Exact name of registrant as specified in its charter)


Delaware						51-0068479
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

2170 Piedmont Road, N.E., Atlanta, Georgia

(Address of principal executive offices)

30324

(Zip Code)

(404) 888-2000

(Registrant’s telephone number, including area code)

___________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

ROL

NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No x

Rollins, Inc. had 484,230,396 shares of its $1 par value Common Stock outstanding as of April 15, 2024.

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ROLLINS, INC. AND SUBSIDIARIES

TABLE OF CONTENTS


		Pages

PART I	FINANCIAL INFORMATION	3

ITEM 1.	FINANCIAL STATEMENTS	3
	CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION	3
	CONDENSED CONSOLIDATED STATEMENTS OF INCOME	4
	CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	5
	CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY	6
	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	7
	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	8
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	17
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	28
ITEM 4.	CONTROLS AND PROCEDURES	28

PART II	OTHER INFORMATION	29

ITEM 1.	LEGAL PROCEEDINGS	29
ITEM 1A.	RISK FACTORS	29
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	30
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	30
ITEM 4.	MINE SAFETY DISCLOSURES	30
ITEM 5.	OTHER INFORMATION	31
ITEM 6.	EXHIBITS	32

SIGNATURES		33

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ROLLINS, INC. AND SUBSIDIARIES

PART 1 FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF MARCH 31, 2024 AND DECEMBER 31, 2023

(in thousands except share data)

(unaudited)


	March 31, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	112,971	$	103,825
Trade receivables, net of allowance for expected credit losses of $14,864 and $15,797, respectively	177,254		178,214
Financed receivables, short-term, net of allowance for expected credit losses of $1,914 and $1,874, respectively	35,717		37,025
Materials and supplies	35,698		33,383
Other current assets	62,713		54,192
Total current assets	424,353		406,639
Equipment and property, net of accumulated depreciation of $366,779 and $360,421, respectively	127,116		126,661
Goodwill	1,095,141		1,070,310
Customer contracts, net	389,199		386,152
Trademarks & tradenames, net	151,821		151,368
Other intangible assets, net	8,370		8,214
Operating lease right-of-use assets	341,639		323,390
Financed receivables, long-term, net of allowance for expected credit losses of $4,342 and $3,728, respectively	79,040		75,909
Other assets	41,940		46,817
Total assets	$	2,658,619	$	2,595,460
LIABILITIES
Accounts payable	$	40,038	$	49,200
Accrued insurance - current	51,660		46,807
Accrued compensation and related liabilities	79,372		114,355
Unearned revenues	186,021		172,380
Operating lease liabilities - current	97,394		92,203

Other current liabilities	137,451		101,744
Total current liabilities	591,936		576,689
Accrued insurance, less current portion	51,928		48,060
Operating lease liabilities, less current portion	246,614		233,369
Long-term debt	510,909		490,776
Other long-term accrued liabilities	89,736		90,999
Total liabilities	1,491,123		1,439,893
Commitments and contingencies (see Note 9)
STOCKHOLDERS’ EQUITY
Preferred stock, without par value; 500,000 shares authorized, zero shares issued	—		—
Common stock, par value $1 per share; 800,000,000 shares authorized, 484,230,396 and 484,080,014 shares issued and outstanding, respectively	484,230		484,080
Additional paid in capital	127,531		131,840
Accumulated other comprehensive loss	(32,472)		(26,755)
Retained earnings	588,207		566,402
Total stockholders’ equity	1,167,496		1,155,567
Total liabilities and stockholders’ equity	$	2,658,619	$	2,595,460

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(in thousands except per share data)

(unaudited)


	Three Months Ended March 31,
		2024		2023
REVENUES
Customer services		$	748,349	$	658,015
COSTS AND EXPENSES
Cost of services provided (exclusive of depreciation and amortization below)		365,558		326,842
Sales, general and administrative		223,057		196,431

Depreciation and amortization		27,310		22,502
Total operating expenses		615,925		545,775
OPERATING INCOME		132,424		112,240
Interest expense, net		7,725		465
Other expense (income), net		61		(4,714)
CONSOLIDATED INCOME BEFORE INCOME TAXES		124,638		116,489
PROVISION FOR INCOME TAXES		30,244		28,255
NET INCOME		$	94,394	$	88,234
NET INCOME PER SHARE - BASIC AND DILUTED		$	0.19	$	0.18
Weighted average shares outstanding – basic		484,131		492,516
Weighted average shares outstanding – diluted		484,318		492,701
DIVIDENDS PAID PER SHARE		$	0.15	$	0.13

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(in thousands)

(unaudited)


	Three Months Ended March 31,
		2024		2023
NET INCOME		$	94,394	$	88,234
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments		(5,774)		97
Unrealized gain on available for sale securities		57		162

Other comprehensive (loss) income, net of tax		(5,717)		259
Comprehensive income		$	88,677	$	88,493

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(in thousands)

(unaudited)


	Common Stock			Paid-in- Capital		Accumulated Other Comprehensive Income / (Loss)		Retained Earnings		Total
	Shares	Amount
Balance at December 31, 2023	484,080	$	484,080	$	131,840	$	(26,755)	$	566,402	$	1,155,567
Net income	—	—		—		—		94,394		94,394
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	—	—		—		(5,774)		—		(5,774)
Unrealized gains on available for sale securities	—	—		—		57		—		57
Cash dividends	—	—		—		—		(72,589)		(72,589)
Stock compensation	414	414		6,767		—		—		7,181
Shares withheld for payment of employee taxes	(264)	(264)		(11,076)		—		—		(11,340)

Balance at March 31, 2024	484,230	$	484,230	$	127,531	$	(32,472)	$	588,207	$	1,167,496


	Common Stock			Paid-in- Capital		Accumulated Other Comprehensive Income / (Loss)		Retained Earnings		Total
	Shares	Amount
Balance at December 31, 2022	492,448	$	492,448	$	119,242	$	(31,562)	$	687,069	$	1,267,197
Net income	—	—		—		—		88,234		88,234
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	—	—		—		97		—		97
Unrealized gains on available for sale securities	—	—		—		162		—		162
Cash dividends	—	—		—		—		(64,053)		(64,053)
Stock compensation	601	601		5,346		—		—		5,947
Shares withheld for payment of employee taxes	(262)	(262)		(9,570)		—		—		(9,832)
Balance at March 31, 2023	492,787	$	492,787	$	115,018	$	(31,303)	$	711,250	$	1,287,752

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(in thousands)

(unaudited)


	Three Months Ended March 31,
	2024		2023
OPERATING ACTIVITIES
Net income	$	94,394	$	88,234
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	27,310		22,502
Stock-based compensation expense	7,181		5,947
Provision for expected credit losses	7,693		3,896
Gain on sale of assets, net	(368)		(4,714)
Provision for deferred income taxes	—		6,929
Changes in operating assets and liabilities:
Trade accounts receivable	(6,400)		1,533
Financing receivables	(1,822)		(4,421)
Materials and supplies	(2,286)		(1,043)
Other current assets	(8,867)		(1,501)
Accounts payable and accrued expenses	(9,396)		(17,548)
Unearned revenue	13,691		8,656
Other long-term assets and liabilities	6,303		(7,697)
Net cash provided by operating activities	127,433		100,773
INVESTING ACTIVITIES
Acquisitions, net of cash acquired	(47,132)		(15,480)
Capital expenditures	(7,171)		(7,636)
Proceeds from sale of assets	712		8,886
Other investing activities, net	1,126		640
Net cash used in investing activities	(52,465)		(13,590)
FINANCING ACTIVITIES
Payment of contingent consideration	(1,474)		(4,098)

Borrowings under revolving commitment	110,000		180,000
Repayments of term loan	—		(55,000)
Repayments of revolving commitment	(90,000)		(115,000)
Payment of dividends	(72,589)		(64,053)
Cash paid for common stock purchased	(11,340)		(11,443)
Other financing activities, net	1,149		(1,488)
Net cash used in financing activities	(64,254)		(71,082)
Effect of exchange rate changes on cash	(1,568)		1,056
Net increase in cash and cash equivalents	9,146		17,157
Cash and cash equivalents at beginning of period	103,825		95,346
Cash and cash equivalents at end of period	$	112,971	$	112,503
Supplemental disclosure of cash flow information:
Cash paid for interest	$	8,707	$	429
Cash paid for income taxes, net	$	5,591	$	12,572
Non-cash additions to operating lease right-of-use assets	$	45,531	$	20,828

The accompanying notes are an integral part of these condensed consolidated financial statements.

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NOTE 1. BASIS OF PREPARATION

Basis of Preparation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, the instructions to Form 10-Q and applicable sections of Securities and Exchange Commission ("SEC") regulation S-X, and therefore do not include all information and footnotes required by U.S. GAAP for complete financial statements. 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, 2023. Accordingly, the quarterly condensed consolidated financial statements and related disclosures herein should be read in conjunction with the 2023 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 months ended March 31, 2024 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.

NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS

Accounting standards and disclosure rules issued but not yet adopted

In October 2023, the FASB issued Accounting Standards Update ("ASU") 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative,” to amend certain disclosure and presentation requirements for a variety of topics within the Accounting Standards Codification ("ASC"). These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K, announced by the SEC. The effective date for each amended topic in the ASC is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or on June 30, 2027, if the SEC has not removed the requirements by that date. Early adoption is prohibited. The Company does not expect that the application of this standard will have a material impact on its disclosures.

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which is intended to improve reportable segment disclosure requirements, primarily through additional and more detailed information about a reportable segment's expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the potential impact of adopting this new guidance on its disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which is intended to enhance the transparency and decision usefulness of income tax disclosures. This amendment modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold, (2) the amount of income taxes paid (net of refunds received) (disaggregated by federal, state, and foreign taxes) as well as individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid net of refunds, (3) the income or loss from continuing operations before income tax expense or benefit (disaggregated between domestic and foreign) and (4) income tax expense or benefit from continuing operations (disaggregated by federal, state

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ROLLINS, INC. AND SUBSIDIARIES

and foreign). The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, while retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its disclosures.

In March 2024, the SEC adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule will require registrants to disclose certain climate-related information in registration statements and annual reports. The disclosure requirements will apply to the Company's fiscal year beginning January 1, 2025. The Company is currently evaluating the final rule to determine its impact on the Company's disclosures.

NOTE 3. ACQUISITIONS

2024 Acquisitions

The Company made 12 acquisitions during the three months ended March 31, 2024. The aggregate preliminary values of major classes of assets acquired and liabilities assumed recorded at the dates of acquisition are included in the reconciliation of the total preliminary consideration as follows (in thousands):


	March 31, 2024

Accounts receivable	$	921
Materials and supplies	206
Other current assets	210
Equipment and property	2,258
Goodwill	27,337
Customer contracts	21,514
Trademarks & tradenames	1,012
Other intangible assets	762
Current liabilities	(364)
Unearned revenue	(58)
Other assets and liabilities, net	(2)
Assets acquired and liabilities assumed	$	53,796

Included in the total consideration of $53.8 million are acquisition holdback liabilities of $6.7 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.

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 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 acquisition has been accounted for as a business combination, and the Fox results of operations are included in the Company's results of operations for the three months ended March 31, 2024. Fox contributed revenues of $35.5 million and net earnings of $1.5 million during the three months ended March 31, 2024.

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The valuation of the Fox acquisition was performed by a third-party valuation specialist under our management’s supervision. The values of identified assets acquired and liabilities assumed were finalized as of March 31, 2024 and are summarized in the table below (in thousands).


	Final Fair Value as of March 31, 2024
Cash	$	4,560
Accounts receivable	1,542
Materials and supplies	431
Operating lease right-of-use assets	8,689
Other current assets	487

Goodwill	188,176
Customer contracts	118,000
Trademarks & tradenames	38,000
Current liabilities	(5,538)
Unearned revenue	(6,144)
Operating lease liabilities	(8,689)
Assets acquired and liabilities assumed	$	339,514

The Company purchased Fox for $339.5 million. Included in the total consideration are cash payments of $302.8 million made upon closing, contingent consideration valued at $28.0 million that is based on Fox's financial performance in the twelve months following acquisition, and holdback liabilities valued at $8.7 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 three months ended March 31, 2024, 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.

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.

NOTE 4. REVENUE

Revenue, classified by the major geographic areas in which our customers are located, was as follows:


	Three Months Ended March 31,
(in thousands)		2024		2023
United States		$	693,860	$	609,311
Other countries		54,489		48,704
Total Revenues		$	748,349	$	658,015

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Revenue from external customers, classified by significant product and service offerings, was as follows:


	Three Months Ended March 31,
(in thousands)		2024		2023
Residential revenue		$	329,338	$	282,757
Commercial revenue		258,114		231,707
Termite completions, bait monitoring, & renewals		152,060		136,131
Franchise revenues		3,961		3,789
Other revenues		4,876		3,631
Total Revenues		$	748,349	$	658,015

Revenues classified by significant product and service offerings for the three months ended March 31, 2023 were misstated by an immaterial amount and have been restated from the amounts previously reported to correct the classification of such revenues. There was no impact on our condensed consolidated statements of income, financial position, or cash flows.

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 months ended March 31, 2024 and 2023 was $61.9 million and $55.5 million, respectively. Changes in unearned revenue were as follows:


	Three Months Ended March 31,
(in thousands)		2024		2023
Beginning balance		$	210,059	$	187,994
Deferral of unearned revenue		74,796		65,626
Recognition of unearned revenue		(61,888)		(55,466)
Ending balance		$	222,967	$	198,154

As of March 31, 2024 and December 31, 2023, the Company had long-term unearned revenue of $36.9 million and $37.7 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 2034.

Incremental Costs of Obtaining a Contract with a Customer

Incremental costs of obtaining a contract include only those costs that we incur to obtain a contract that we would not have incurred if the contract had not been obtained, primarily sales commissions. These costs are recorded as an asset and amortized to expense over the life of the contract to the extent such costs are expected to be recovered. As of March 31, 2024, we have $18.4 million of unamortized capitalized costs to obtain a contract, of which $15.4 million is recorded within other current assets and $3.0 million is recorded within other assets on our condensed consolidated statement of financial position. During the quarter ended March 31, 2024, we recorded approximately $3.8 million amortization of capitalized costs, which is recorded within sales, general and administrative expense on our condensed consolidated statement of income. During the quarter ended March 31, 2023, we had no unamortized capitalized costs to obtain a contract and we recorded no amortization of capitalized costs.

NOTE 5. 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.

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The Company manages its financed 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. Financed 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 months ended March 31, 2024 and 2023.


	Allowance for Credit Losses
(in thousands)	Trade Receivables		Financed Receivables		Total Receivables
Balance at December 31, 2023	$	15,797	$	5,602	$	21,399
Provision for expected credit losses	4,823		2,870		7,693
Write-offs charged against the allowance	(7,184)		(2,362)		(9,546)
Recoveries collected	1,429		146		1,575
Balance at March 31, 2024	$	14,865	$	6,256	$	21,121


	Allowance for Credit Losses
(in thousands)	Trade Receivables		Financed Receivables		Total Receivables
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

NOTE 6. GOODWILL AND INTANGIBLE ASSETS

The following table summarizes changes in goodwill during the three months ended March 31, 2024 (in thousands):


Goodwill:
Balance at December 31, 2023	$	1,070,310
Additions	27,337

Adjustments due to currency translation and other	(2,506)
Balance at March 31, 2024	$	1,095,141

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The following table sets forth the components of indefinite-lived and amortizable intangible assets as of March 31, 2024, and December 31, 2023 (in thousands):


	March 31, 2024						December 31, 2023
	Gross		Accumulated Amortization		Carrying Value		Gross		Accumulated Amortization		Carrying Value		Useful Life in Years
Amortizable intangible assets:
Customer contracts	$	645,021	$	(255,822)	$	389,199	$	625,920	$	(239,768)	$	386,152	3-20
Trademarks and tradenames	22,413		(10,324)		12,089		21,566		(9,933)		11,633		7-20
Other intangible assets	25,376		(19,233)		6,143		24,766

SEC Form 10-Q filed by Rollins Inc.