Revenues

9 Months Ended

Sep. 30, 2020

Revenues[Abstract]

Revenues

Note 3. Revenues

The following tables present our reportable segment revenues from continuing operations, disaggregated by revenue source. We disaggregate revenue from contracts with customers into major product lines. We have determined that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. As noted in the business segment reporting information in Note 15, our reportable segment is Terminix.

Revenue related to fumigation completion services and the related renewals (the “Fumigation Services”) is shown in Termite and Home Services below and prior period amounts related to the Fumigation Services have been reclassified from Fumigation to Termite and Home Services to conform to the current period presentation. Additionally, prior period revenue for Residential Pest Control and Commercial Pest Control has been reclassified to conform to the current period presentation.

					European Pest Control
	Terminix				and Other				Total
	Three months ended				Three months ended				Three months ended
	September 30,				September 30,				September 30,
(In millions)		2020		2019		2020		2019		2020		2019
Major service line
Residential Pest Control	$	193	$	183	$	—	$	—	$	193	$	183
Commercial Pest Control		119		110		—		—		119		110
Termite and Home Services		151		144		—		—		151		144
Sales of Products and Other		28		24		—		—		28		24
European Pest Control		—		—		21		4		21		4
Total	$	491	$	461	$	21	$	4	$	512	$	465

					European Pest Control
	Terminix				and Other				Total
	Nine months ended				Nine Months ended				Nine Months ended
	September 30,				September 30,				September 30,
(In millions)		2020		2019		2020		2019		2020		2019
Major service line
Residential Pest Control	$	534	$	519	$	—	$	—	$	534	$	519
Commercial Pest Control		332		309		—		—		332		309
Termite and Home Services		502		483		—		—		502		483
Sales of Products and Other		78		64		—		—		78		64
European Pest Control		—		—		56		4		56		4
Total	$	1,446	$	1,375	$	56	$	4	$	1,502	$	1,378

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to customers. Contracts with customers are generally for a period of one year or less and are generally renewable. We record a receivable related to revenue recognized on services once we have an unconditional right to invoice and receive payment in the future related to the services provided. All accounts receivables are recorded within Receivables, less allowances, on the Condensed Consolidated Statements of Financial Position. The current portion of Notes receivable, which represents amounts financed for Terminix customers, are included within Receivables, less allowances, on the condensed consolidated statement of financial position and totaled $28 million and $38 million as of September 30, 2020 and December 31, 2019, respectively.

Deferred revenue represents a contract liability and is recognized when cash payments are received in advance of the performance of services, including when the amounts are refundable. For Terminix, amounts are recognized as revenue upon completion of services.

Changes in deferred revenue for the nine months ended September 30, 2020 and 2019 were as follows:

(In millions)	Deferred revenue
Balance, December 31, 2019	$	92
Deferral of revenue		89
Recognition of deferred revenue		(89)
Balance, September 30, 2020	$	92
Balance, December 31, 2018	$	91
Deferral of revenue		104
Recognition of deferred revenue		(99)
Balance, September 30, 2019	$	96

Approximately $12 million and $15 million of deferred revenue is recognized in the Condensed Consolidated Statements of Financial Position in European Pest Control and Other as of September 30, 2020 and December 31, 2019, respectively.

There was approximately $11 million and $51 million of revenue recognized in the three and nine months ended September 30, 2020, that was included in the deferred revenue balance as of December 31, 2019. There was approximately $11 million and $56 million of revenue recognized in the three and nine months ended September 30, 2019, that was included in the deferred revenue balance as of December 31, 2018.