false--12-31Q320200001428875us-gaap:LongTermDebtCurrentus-gaap:LongTermDebtAndCapitalLeaseObligations0001428875us-gaap:TreasuryStockMember2019-07-012019-09-300001428875us-gaap:TreasuryStockMember2019-04-012019-06-300001428875us-gaap:TreasuryStockMember2019-01-012019-03-310001428875us-gaap:TreasuryStockMember2020-01-012020-03-310001428875us-gaap:TreasuryStockMember2020-09-300001428875us-gaap:RetainedEarningsMember2020-09-300001428875us-gaap:AdditionalPaidInCapitalMember2020-09-300001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001428875us-gaap:TreasuryStockMember2020-06-300001428875us-gaap:RetainedEarningsMember2020-06-300001428875us-gaap:AdditionalPaidInCapitalMember2020-06-300001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-3000014288752020-06-300001428875us-gaap:TreasuryStockMember2020-03-310001428875us-gaap:RetainedEarningsMember2020-03-310001428875us-gaap:AdditionalPaidInCapitalMember2020-03-310001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-3100014288752020-03-310001428875us-gaap:TreasuryStockMember2019-12-310001428875us-gaap:RetainedEarningsMember2019-12-310001428875us-gaap:AdditionalPaidInCapitalMember2019-12-310001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001428875us-gaap:TreasuryStockMember2019-09-300001428875us-gaap:RetainedEarningsMember2019-09-300001428875us-gaap:AdditionalPaidInCapitalMember2019-09-300001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300001428875us-gaap:TreasuryStockMember2019-06-300001428875us-gaap:RetainedEarningsMember2019-06-300001428875us-gaap:AdditionalPaidInCapitalMember2019-06-300001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-3000014288752019-06-300001428875us-gaap:TreasuryStockMember2019-03-310001428875us-gaap:RetainedEarningsMember2019-03-310001428875us-gaap:AdditionalPaidInCapitalMember2019-03-310001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-3100014288752019-03-310001428875us-gaap:TreasuryStockMember2018-12-310001428875us-gaap:RetainedEarningsMember2018-12-310001428875us-gaap:AdditionalPaidInCapitalMember2018-12-310001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001428875us-gaap:CommonStockMember2020-09-300001428875us-gaap:CommonStockMember2020-06-300001428875us-gaap:CommonStockMember2020-03-310001428875us-gaap:CommonStockMember2019-12-310001428875us-gaap:CommonStockMember2019-09-300001428875us-gaap:CommonStockMember2019-06-300001428875us-gaap:CommonStockMember2019-03-310001428875us-gaap:CommonStockMember2018-12-310001428875us-gaap:OperatingSegmentsMembertmx:EuropeanPestControlAndOtherMember2020-07-012020-09-300001428875tmx:TermiteAndOtherServicesMembertmx:TerminixMember2020-07-012020-09-300001428875tmx:SalesOfProductsAndOtherMembertmx:TerminixMember2020-07-012020-09-300001428875tmx:ResidentialPestControlMembertmx:TerminixMember2020-07-012020-09-300001428875tmx:EuropeanPestControlMembertmx:EuropeanPestControlAndOtherMember2020-07-012020-09-300001428875tmx:CommercialPestControlMembertmx:TerminixMember2020-07-012020-09-300001428875tmx:TermiteAndOtherServicesMember2020-07-012020-09-300001428875tmx:TerminixMember2020-07-012020-09-300001428875tmx:SalesOfProductsAndOtherMember2020-07-012020-09-300001428875tmx:ResidentialPestControlMember2020-07-012020-09-300001428875tmx:EuropeanPestControlAndOtherMember2020-07-012020-09-300001428875tmx:CommercialPestControlMember2020-07-012020-09-300001428875us-gaap:OperatingSegmentsMembertmx:EuropeanPestControlAndOtherMember2020-01-012020-09-300001428875tmx:TermiteAndOtherServicesMembertmx:TerminixMember2020-01-012020-09-300001428875tmx:SalesOfProductsAndOtherMembertmx:TerminixMember2020-01-012020-09-300001428875tmx:ResidentialPestControlMembertmx:TerminixMember2020-01-012020-09-300001428875tmx:EuropeanPestControlMembertmx:EuropeanPestControlAndOtherMember2020-01-012020-09-300001428875tmx:CommercialPestControlMembertmx:TerminixMember2020-01-012020-09-300001428875tmx:TermiteAndOtherServicesMember2020-01-012020-09-300001428875tmx:SalesOfProductsAndOtherMember2020-01-012020-09-300001428875tmx:ResidentialPestControlMember2020-01-012020-09-300001428875tmx:CommercialPestControlMember2020-01-012020-09-300001428875us-gaap:OperatingSegmentsMembertmx:EuropeanPestControlAndOtherMember2019-07-012019-09-300001428875tmx:TermiteAndOtherServicesMembertmx:TerminixMember2019-07-012019-09-300001428875tmx:SalesOfProductsAndOtherMembertmx:TerminixMember2019-07-012019-09-300001428875tmx:ResidentialPestControlMembertmx:TerminixMember2019-07-012019-09-300001428875tmx:EuropeanPestControlMembertmx:EuropeanPestControlAndOtherMember2019-07-012019-09-300001428875tmx:CommercialPestControlMembertmx:TerminixMember2019-07-012019-09-300001428875tmx:TermiteAndOtherServicesMember2019-07-012019-09-300001428875tmx:TerminixMember2019-07-012019-09-300001428875tmx:SalesOfProductsAndOtherMember2019-07-012019-09-300001428875tmx:ResidentialPestControlMember2019-07-012019-09-300001428875tmx:EuropeanPestControlAndOtherMember2019-07-012019-09-300001428875tmx:CommercialPestControlMember2019-07-012019-09-300001428875us-gaap:OperatingSegmentsMembertmx:EuropeanPestControlAndOtherMember2019-01-012019-09-300001428875tmx:TermiteAndOtherServicesMembertmx:TerminixMember2019-01-012019-09-300001428875tmx:SalesOfProductsAndOtherMembertmx:TerminixMember2019-01-012019-09-300001428875tmx:ResidentialPestControlMembertmx:TerminixMember2019-01-012019-09-300001428875tmx:EuropeanPestControlMembertmx:EuropeanPestControlAndOtherMember2019-01-012019-09-300001428875tmx:CommercialPestControlMembertmx:TerminixMember2019-01-012019-09-300001428875tmx:TermiteAndOtherServicesMember2019-01-012019-09-300001428875tmx:TerminixMember2019-01-012019-09-300001428875tmx:SalesOfProductsAndOtherMember2019-01-012019-09-300001428875tmx:ResidentialPestControlMember2019-01-012019-09-300001428875tmx:EuropeanPestControlAndOtherMember2019-01-012019-09-300001428875tmx:CommercialPestControlMember2019-01-012019-09-300001428875us-gaap:OtherRestructuringMemberus-gaap:CorporateMember2020-07-012020-09-300001428875us-gaap:CorporateMember2020-07-012020-09-300001428875us-gaap:OtherRestructuringMemberus-gaap:CorporateMember2020-01-012020-09-300001428875us-gaap:EmployeeSeveranceMemberus-gaap:CorporateMember2020-01-012020-09-300001428875us-gaap:CorporateMember2020-01-012020-09-300001428875us-gaap:CorporateMember2019-07-012019-09-300001428875us-gaap:OtherRestructuringMemberus-gaap:CorporateMember2019-01-012019-09-300001428875us-gaap:EmployeeSeveranceMemberus-gaap:CorporateMember2019-01-012019-09-300001428875us-gaap:CorporateMember2019-01-012019-09-300001428875us-gaap:CorporateMember2020-09-300001428875tmx:TerminixMember2020-09-300001428875us-gaap:RevolvingCreditFacilityMember2019-11-052019-11-050001428875us-gaap:AccumulatedTranslationAdjustmentMember2019-01-012019-09-300001428875us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-01-012019-09-3000014288752019-01-012019-12-310001428875tmx:TwoPestControlMember2020-01-012020-09-300001428875tmx:NineTuckInPestControlMember2020-01-012020-09-300001428875tmx:BusinessCombinations2019AcquisitionsMember2019-01-012019-09-300001428875tmx:AssetAcquisitions2019AcquisitionsMember2019-01-012019-09-300001428875us-gaap:CorporateMember2020-07-012020-09-300001428875us-gaap:CorporateMember2020-01-012020-09-300001428875us-gaap:CorporateMember2019-07-012019-09-300001428875us-gaap:CorporateMember2019-01-012019-09-300001428875us-gaap:UninsuredRiskMember2020-01-012020-09-300001428875tmx:LitigatedClaimsAndNonLitigatedClaimsMember2020-01-012020-09-300001428875us-gaap:UninsuredRiskMember2019-01-012019-09-300001428875tmx:LitigatedClaimsAndNonLitigatedClaimsMember2019-01-012019-09-300001428875us-gaap:UninsuredRiskMember2020-09-300001428875tmx:LitigatedClaimsAndNonLitigatedClaimsMember2020-09-300001428875us-gaap:UninsuredRiskMember2019-12-310001428875tmx:LitigatedClaimsAndNonLitigatedClaimsMember2019-12-310001428875us-gaap:UninsuredRiskMember2019-09-300001428875tmx:LitigatedClaimsAndNonLitigatedClaimsMember2019-09-300001428875us-gaap:UninsuredRiskMember2018-12-310001428875tmx:LitigatedClaimsAndNonLitigatedClaimsMember2018-12-310001428875tmx:CopesanServicesInc.CopesanMembertmx:OtherLongTermDebtMember2020-09-300001428875tmx:OtherLongTermDebtMember2020-09-300001428875tmx:CopesanServicesInc.CopesanMembertmx:OtherLongTermDebtMember2019-12-310001428875tmx:OtherLongTermDebtMember2019-12-310001428875tmx:RevolvingCreditFacilityMaturingIn2024Member2019-11-050001428875us-gaap:TradeNamesMember2020-09-300001428875us-gaap:TradeNamesMember2019-12-310001428875us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001428875us-gaap:RestrictedStockUnitsRSUMember2019-07-012019-09-300001428875us-gaap:EmployeeStockOptionMember2019-07-012019-09-300001428875us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-09-300001428875us-gaap:EmployeeStockOptionMember2019-01-012019-09-300001428875us-gaap:OtherIntangibleAssetsMember2019-01-012019-12-310001428875us-gaap:CustomerRelationshipsMember2019-01-012019-12-310001428875tmx:TerminixMember2020-01-012020-09-300001428875tmx:EuropeanPestControlAndOtherMember2020-01-012020-09-300001428875tmx:TerminixMember2020-09-300001428875tmx:TerminixMember2019-12-310001428875tmx:SeniorSecuredTermLoanFacilityMaturingIn2026Member2020-07-012020-09-300001428875tmx:Notes7.45And7.25CollectivelyMemberus-gaap:LoansPayableMember2019-01-012019-09-300001428875tmx:SeniorSecuredTermLoanFacilityMember2019-01-012019-09-300001428875tmx:FrontdoorInc.Member2019-01-012019-09-300001428875us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001428875us-gaap:CommodityContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001428875us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001428875us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001428875us-gaap:CommodityContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001428875us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001428875us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001428875us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001428875us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300001428875us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300001428875us-gaap:OtherIntangibleAssetsMember2020-09-300001428875us-gaap:CustomerRelationshipsMember2020-09-300001428875us-gaap:OtherIntangibleAssetsMember2019-12-310001428875us-gaap:CustomerRelationshipsMember2019-12-310001428875us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001428875us-gaap:CommodityContractMember2020-09-300001428875us-gaap:CommodityContractMember2019-12-310001428875us-gaap:CommodityContractMember2019-09-300001428875us-gaap:CommodityContractMember2018-12-310001428875us-gaap:CommodityContractMember2020-01-012020-09-300001428875us-gaap:CommodityContractMember2019-01-012019-09-300001428875tmx:SeniorSecuredTermLoanFacilityMember2019-03-012019-04-3000014288752015-11-030001428875srt:MaximumMember2015-04-270001428875us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembertmx:ServicemasterBrandsMemberus-gaap:SubsequentEventMember2020-10-010001428875us-gaap:InterestRateSwapMember2019-11-052019-11-050001428875us-gaap:CommodityContractMember2020-09-300001428875us-gaap:CrossCurrencyInterestRateContractMember2020-03-030001428875tmx:InterestRateSwapIiMember2019-12-310001428875us-gaap:CrossCurrencyInterestRateContractMember2020-01-012020-09-300001428875tmx:CrossCurrencySwapMember2020-01-012020-09-300001428875us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001428875us-gaap:InterestRateSwapMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001428875us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001428875us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001428875tmx:NetInvestmentHedgeMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001428875tmx:NetInvestmentHedgeMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001428875srt:WeightedAverageMemberus-gaap:CommodityContractMembertmx:DiscountedCashFlowsValuationTechniqueMember2020-09-300001428875srt:MinimumMemberus-gaap:CommodityContractMembertmx:DiscountedCashFlowsValuationTechniqueMember2020-09-300001428875srt:MaximumMemberus-gaap:CommodityContractMembertmx:DiscountedCashFlowsValuationTechniqueMember2020-09-300001428875srt:WeightedAverageMemberus-gaap:CommodityContractMembertmx:DiscountedCashFlowsValuationTechniqueMember2019-12-310001428875srt:MinimumMemberus-gaap:CommodityContractMembertmx:DiscountedCashFlowsValuationTechniqueMember2019-12-310001428875srt:MaximumMemberus-gaap:CommodityContractMembertmx:DiscountedCashFlowsValuationTechniqueMember2019-12-310001428875tmx:CrossCurrencySwapMember2020-03-030001428875us-gaap:InterestRateSwapMember2019-12-310001428875us-gaap:InterestRateSwapMember2019-11-050001428875us-gaap:InterestRateSwapMember2019-09-300001428875us-gaap:InterestRateSwapMember2018-12-310001428875us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001428875us-gaap:CommodityContractMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001428875us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001428875us-gaap:InterestRateSwapMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001428875us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001428875us-gaap:CommodityContractMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001428875tmx:SeniorSecuredTermLoanFacilityMaturingIn2026Memberus-gaap:SecuredDebtMember2020-09-300001428875tmx:SeniorSecuredTermLoanFacilityMaturingIn2026Memberus-gaap:SecuredDebtMember2019-12-310001428875tmx:Notes7.45PercentMaturing2027Memberus-gaap:LoansPayableMember2019-04-012019-04-300001428875tmx:Notes7.45PercentMaturing2027Memberus-gaap:LoansPayableMember2019-03-012019-03-310001428875tmx:Notes7.25PercentMaturing2038Memberus-gaap:LoansPayableMember2019-03-012019-03-310001428875tmx:SeniorNotes5.125Maturing2024Memberus-gaap:LoansPayableMember2020-09-300001428875tmx:Notes7.45PercentMaturing2027Memberus-gaap:LoansPayableMember2020-09-300001428875tmx:Notes7.25PercentMaturing2038Memberus-gaap:LoansPayableMember2020-09-300001428875tmx:SeniorNotes5.125Maturing2024Memberus-gaap:LoansPayableMember2019-12-310001428875tmx:Notes7.45PercentMaturing2027Memberus-gaap:LoansPayableMember2019-12-310001428875tmx:Notes7.25PercentMaturing2038Memberus-gaap:LoansPayableMember2019-12-310001428875tmx:Notes7.45PercentMaturing2027Memberus-gaap:LoansPayableMember2019-04-300001428875us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300001428875us-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001428875tmx:SeniorSecuredTermLoanFacilityMaturingIn2026Member2019-11-050001428875us-gaap:RevolvingCreditFacilityMember2019-09-050001428875tmx:Notes7.45PercentMaturing2027Memberus-gaap:LoansPayableMember2019-03-310001428875tmx:Notes7.25PercentMaturing2038Memberus-gaap:LoansPayableMember2019-03-310001428875tmx:ShortTermCreditFacilityMember2019-03-120001428875tmx:FourthAmendmentTermLoanFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-012020-09-300001428875tmx:FourthAmendmentTermLoanFacilityMemberus-gaap:BaseRateMember2020-01-012020-09-300001428875us-gaap:CapitalLeaseObligationsMember2020-01-012020-09-300001428875us-gaap:CapitalLeaseObligationsMember2019-01-012019-12-310001428875tmx:ServicemasterBrandsMember2020-07-012020-09-300001428875tmx:EuropeanPestControlMember2020-07-012020-09-300001428875tmx:ServicemasterBrandsMember2020-01-012020-09-300001428875tmx:EuropeanPestControlMember2020-01-012020-09-300001428875tmx:ServicemasterBrandsMember2019-07-012019-09-300001428875tmx:EuropeanPestControlMember2019-07-012019-09-300001428875tmx:ServicemasterBrandsMember2019-01-012019-09-300001428875tmx:EuropeanPestControlMember2019-01-012019-09-300001428875tmx:EuropeanPestControlAndOtherMember2020-09-300001428875tmx:EuropeanPestControlAndOtherMember2019-12-310001428875us-gaap:RetainedEarningsMember2020-07-012020-09-300001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001428875us-gaap:RetainedEarningsMember2020-04-012020-06-300001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001428875us-gaap:RetainedEarningsMember2020-01-012020-03-310001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001428875us-gaap:RetainedEarningsMember2019-04-012019-06-300001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001428875us-gaap:RetainedEarningsMember2019-01-012019-03-310001428875us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001428875tmx:NomorMember2019-09-062019-09-060001428875us-gaap:CapitalLeaseObligationsMember2020-09-300001428875us-gaap:CapitalLeaseObligationsMember2019-12-310001428875tmx:GlobalServiceCenterRelocationMember2019-01-012019-09-300001428875us-gaap:TradeNamesMember2019-09-300001428875us-gaap:OtherIntangibleAssetsMember2019-09-300001428875tmx:NomorMember2019-09-060001428875tmx:PestControlAcquisitionMember2020-09-3000014288752018-03-310001428875us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001428875us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001428875us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001428875us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001428875us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001428875us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001428875us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001428875us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300001428875us-gaap:EmployeeStockOptionMember2020-07-012020-09-300001428875us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001428875us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-3000014288752020-04-012020-06-300001428875us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100014288752020-01-012020-03-310001428875us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001428875us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-3000014288752019-04-012019-06-300001428875us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-3100014288752019-01-012019-03-310001428875us-gaap:AccumulatedTranslationAdjustmentMember2020-09-300001428875us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-09-300001428875us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310001428875us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-12-310001428875us-gaap:AccumulatedTranslationAdjustmentMember2019-09-300001428875us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-09-3000014288752019-09-300001428875us-gaap:AccumulatedTranslationAdjustmentMember2018-12-310001428875us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2018-12-3100014288752018-12-310001428875tmx:Notes7.45And7.25CollectivelyMemberus-gaap:LoansPayableMember2020-09-300001428875tmx:Notes7.45And7.25CollectivelyMemberus-gaap:LoansPayableMember2019-12-310001428875us-gaap:CrossCurrencyInterestRateContractMember2020-03-032020-03-030001428875tmx:TerminixMember2020-07-012020-09-300001428875tmx:TerminixMember2020-01-012020-09-300001428875tmx:TerminixMember2019-07-012019-09-300001428875tmx:TerminixMember2019-01-012019-09-300001428875us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-09-300001428875us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-01-012020-09-300001428875us-gaap:AcquisitionRelatedCostsMember2020-01-012020-09-300001428875tmx:FrontdoorInc.Member2019-03-272019-03-2700014288752019-02-012019-02-280001428875srt:MaximumMember2015-02-242015-02-240001428875tmx:Notes7.45PercentMaturing2027Memberus-gaap:LoansPayableMember2020-01-012020-09-300001428875us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-09-300001428875us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001428875us-gaap:RetainedEarningsMember2019-07-012019-09-300001428875us-gaap:InterestRateSwapMember2020-09-3000014288752020-09-3000014288752019-12-3100014288752019-02-280001428875us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembertmx:ServicemasterBrandsMemberus-gaap:SubsequentEventMember2020-10-012020-10-010001428875us-gaap:DiscontinuedOperationsHeldforsaleMember2020-09-300001428875us-gaap:DiscontinuedOperationsHeldforsaleMember2019-12-310001428875us-gaap:InterestRateSwapMember2020-01-012020-09-300001428875us-gaap:InterestRateSwapMember2019-07-012019-12-310001428875tmx:SeniorSecuredTermLoanFacilityMaturingIn2026Member2020-01-012020-09-300001428875us-gaap:SubsequentEventMember2020-11-042020-11-040001428875srt:MinimumMembertmx:PestControlAcquisitionMember2020-01-012020-09-300001428875srt:MaximumMembertmx:PestControlAcquisitionMember2020-01-012020-09-300001428875us-gaap:InterestRateSwapMember2019-11-012019-11-300001428875us-gaap:InterestRateSwapMember2019-01-012019-12-310001428875tmx:InterestRateSwapIiMember2019-01-012019-12-310001428875us-gaap:InterestRateSwapMember2019-01-012019-09-300001428875us-gaap:OperatingSegmentsMembertmx:TerminixMember2020-07-012020-09-3000014288752020-07-012020-09-300001428875us-gaap:OperatingSegmentsMembertmx:TerminixMember2020-01-012020-09-300001428875us-gaap:OperatingSegmentsMembertmx:TerminixMember2019-07-012019-09-3000014288752019-07-012019-09-300001428875us-gaap:OperatingSegmentsMembertmx:TerminixMember2019-01-012019-09-3000014288752019-01-012019-09-3000014288752020-11-0200014288752020-01-012020-09-30tmx:segmenttmx:itemtmx:entityiso4217:SEKiso4217:USDutr:galiso4217:USDxbrli:sharesxbrli:pureiso4217:USDxbrli:shares

 

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 September 30, 2020

or

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 001-36507

________________________________________________

Terminix Global Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware

20-8738320

(State or other jurisdiction of incorporation or organization)

(IRS Employer Identification No.)

150 Peabody Place, Memphis, Tennessee 38103

(Address of principal executive offices) (Zip Code)

901-597-1400

(Registrant’s telephone number, including area code)

ServiceMaster Global Holdings, Inc.

(Former name, former address and former fiscal year, if changed since last report)

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, par value $0.01

TMX

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 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, a smaller reporting company, or an emerging growth company. See 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 x

Accelerated Filer o

Non-Accelerated Filer o

Smaller Reporting Company o

Emerging Growth Company o

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 o No x

The number of shares of the registrant’s common stock outstanding as of November 2, 2020: 132,107,419 shares of common stock, par value $0.01 per share.

 


Table of Contents

TABLE OF CONTENTS

Page
No.

Part I. Financial Information

Item 1. Financial Statements (Unaudited)

Condensed Consolidated Statements of Operations and Comprehensive Income

3

Condensed Consolidated Statements of Financial Position

4

Condensed Consolidated Statements of Stockholders’ Equity

5

Condensed Consolidated Statements of Cash Flows

6

Notes to Condensed Consolidated Financial Statements

7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

Item 3. Quantitative and Qualitative Disclosures About Market Risk

46

Item 4. Controls and Procedures

47

Part II. Other Information

47

Item 1. Legal Proceedings

47

Item 1A. Risk Factors

48

Item 6. Exhibits

49

Signature

50

 

2


Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

(In millions, except per share data)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2020

2019

2020

2019

Revenue

$

512

$

465

$

1,502

$

1,378

Cost of services rendered and products sold

299

278

876

790

Selling and administrative expenses

140

137

423

398

Amortization expense

9

6

26

16

Acquisition-related costs

(1)

8

12

Mobile Bay Formosan termite settlement

49

49

Restructuring and other charges

2

4

14

12

Realized (gain) on investment in frontdoor, inc.

(40)

Interest expense

22

19

67

64

Interest and net investment income

(1)

(1)

(2)

(4)

Loss on extinguishment of debt

1

1

6

(Loss) Income from Continuing Operations before Income Taxes

(7)

13

50

124

Provision for income taxes

15

4

31

22

Equity in earnings of joint ventures

1

2

(Loss) Income from Continuing Operations

(21)

8

20

103

Net earnings from discontinued operations

14

17

40

51

Net (Loss) Income

$

(7)

$

25

$

61

$

154

Total Comprehensive Income

$

(16)

$

18

$

3

$

141

Weighted-average common shares outstanding - Basic

132.0

135.8

132.9

135.9

Weighted-average common shares outstanding - Diluted

132.0

136.5

133.1

136.5

Basic Earnings Per Share:

(Loss) Income from Continuing Operations

$

(0.17)

$

0.06

$

0.14

$

0.76

Net (Loss) Income

(0.06)

0.19

0.44

1.13

Diluted Earnings Per Share:

(Loss) Income from Continuing Operations

$

(0.17)

$

0.06

$

0.14

$

0.75

Net (Loss) Income

(0.06)

0.19

0.44

1.13

See accompanying Notes to the unaudited Condensed Consolidated Financial Statements

3


Table of Contents

Condensed Consolidated Statements of Financial Position (Unaudited)

(In millions, except share data)

As of

As of

September 30,

December 31,

2020

2019

Assets:

Current Assets:

Cash and cash equivalents

$

288

$

280

Receivables, less allowances of $24 and $22, respectively

214

178

Inventories

40

46

Prepaid expenses and other assets

73

81

Current assets held for sale

892

45

Total Current Assets

1,507

629

Other Assets:

Property and equipment, net

181

204

Operating lease right-of-use assets

83

95

Goodwill

2,127

2,096

Intangible assets, primarily trade names, service marks and trademarks, net

1,113

1,169

Restricted cash

89

89

Notes receivable

32

32

Long-term marketable securities

13

13

Deferred customer acquisition costs

105

94

Other assets

76

68

Long-term assets held for sale

834

Total Assets

$

5,326

$

5,322

Liabilities and Stockholders' Equity:

Current Liabilities:

Accounts payable

$

100

$

96

Accrued liabilities:

Payroll and related expenses

92

54

Self-insured claims and related expenses

87

72

Accrued interest payable

17

16

Other

159

82

Deferred revenue

104

107

Current portion of lease liability

17

19

Current portion of long-term debt

100

69

Current liabilities held for sale

62

42

Total Current Liabilities

740

557

Long-Term Debt

1,565

1,666

Other Long-Term Liabilities:

Deferred taxes

480

499

Other long-term obligations, primarily self-insured claims

203

158

Long-term lease liability

99

110

Long-term liabilities held for sale

11

Total Other Long-Term Liabilities

783

777

Commitments and Contingencies (Note 6)

 

 

Stockholders' Equity:

Common stock $0.01 par value (authorized 2,000,000,000 shares with 148,256,197 shares issued and 132,043,971 outstanding at September 30, 2020 and 147,872,959 shares issued and 135,408,054 outstanding at December 31, 2019)

2

2

Additional paid-in capital

2,352

2,334

Retained Earnings

351

291

Accumulated other comprehensive (loss) income

(49)

9

Less common stock held in treasury, at cost (16,212,226 shares at September 30, 2020 and 12,464,905 shares at December 31, 2019)

(417)

(313)

Total Stockholders' Equity

2,239

2,322

Total Liabilities and Stockholders' Equity

$

5,326

$

5,322

See accompanying Notes to the unaudited Condensed Consolidated Financial Statements


4


Table of Contents

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

(In millions)

Retained

Accumulated

Additional

Earnings

Other

Common

Paid-in

(Accumulated

Comprehensive

Treasury

Total

Shares

Stock

Capital

Deficit)

(Loss) Income

Shares

Amount

Equity

Balance December 31, 2018

147

$

2

$

2,309

$

156

$

5

(12)

$

(267)

$

2,204

Net income

70

70

Other comprehensive loss, net of tax

(2)

(2)

Total comprehensive income (loss)

70

(2)

68

Exercise of stock options

5

5

Stock-based employee compensation

4

4

Repurchase of common stock

(2)

(2)

Balance March 31, 2019

148

$

2

$

2,318

$

226

$

3

(12)

$

(269)

$

2,280

Net income

59