Rollins Inc. (ROL) presents a deeply negative liquidation posture as of March 31, 2026, consistent with prior periods and the MFFAIS-reported values (CLV -$1.44B, LLV -$1.23B, OLV -$1.19B). The balance sheet is dominated by intangible assets and goodwill that carry zero recovery value under liquidation assumptions. Total assets of $3.16B decompose as follows on a haircut basis: cash $117M (100% recovery = $117M); net AR $211M (90% = $190M); inventory $44M (60% = $26M); PP&E net $125M (60% = $75M); operating lease ROU $413M (0% under liquidation, obligation survives); goodwill $1.38B (0%); finite intangibles net $409M (0%); indefinite intangibles $157M (0%); notes receivable current/noncurrent $155M (uncertain collectibility, likely 50-70% at best); other current assets $98M (partial recovery uncertain). Gross liquidating asset value approximates $420-450M before transaction costs. Against this, total liabilities stand at $1.78B at face value, including: short-term borrowings (commercial paper) $164M; long-term debt (2035 Senior Notes, face $500M) $487M net of discount and issuance costs but restated to face = $500M at liquidation; total operating lease liabilities $417M (current $137M + noncurrent $280M), which do not extinguish; accrued insurance current/noncurrent $133M; deferred revenue $243M (service obligation that accelerates as a liability); employee accruals $102M; accounts payable $61M; other current $91M; other noncurrent accrued $129M. The liability stack totals approximately $1.78B at face, producing deeply negative equity recovery in the range of negative $1.2-1.4B, consistent with reported MFFAIS metrics. Key changes since the prior filing (10-K, December 31, 2025): commercial paper outstanding grew from $114M to $164M, marginally increasing the short-term liability stack. Goodwill increased modestly ($9.4M acquisition adds). The 2035 Senior Notes ($500M face) remain unchanged. Operating lease liabilities declined slightly ($428M to $417M) as leases amortized, marginally improving the liquidation posture. The accrued insurance noncurrent balance ($88M) represents a disclosed high-deductible retained loss program — an actuarially estimated liability that would not extinguish on wind-up and may be understated relative to runoff costs. Filing discusses contingent consideration liabilities from Fox and Saela acquisitions in MD&A but these are not separately broken out in XBRL as a distinct balance sheet line; they flow through OtherLiabilitiesCurrent and OtherAccruedLiabilitiesNoncurrent.
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