UNEARNED REVENUE

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

REVENUE

Adoption of ASC 606, "Revenue from Contracts with Customers". On January 1, 2018, and the Company adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2017. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605.

There was no material impact on the Company’s financial statements as a result of adopting ASC 606 for the six months ended June 30, 2018 and 2017, or the twelve months ended December 31, 2017.

The following tables present our revenues disaggregated by revenue source (in thousands, unaudited).

Sales and usage-based taxes are excluded from revenues. No sales to an individual customer or country other than the United States accounted for more than 10% of the six months ended June 30, 2018 and 2017, respectively. Revenue, classified by the major geographic areas in which our customers are located, was as follows:



	(In thousands)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
United States	$	443,782	$	400,300	$	819,741	$	745,880
Other countries	36,679		33,255		69,462		62,922
Total Revenues	$	480,461	$	433,555	$	889,203	$	808,802

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



	(In thousands)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Residential contract revenue	$	169,411	$	151,252	$	313,445	$	283,596
Commercial contract revenue	136,839		129,174		268,918		254,006
Termite completions, bait monitoring, & renewals	93,874		80,950		170,365		146,602
Other revenues	80,337		72,179		136,475		124,598
Total Revenues	$	480,461	$	433,555	$	889,203	$	808,802

UNEARNED REVENUE

Changes in unearned revenue were as follows:



(In thousands)
Six Months ended June 30, 2018
Balance at December 31, 2017	$	117,614
Deferral of unearned revenue	95,948
Recognition of unearned revenue	(78,290		)
Balance at June 30, 2018	135,272

Year ended December 31, 2017
Balance at December 31, 2016	$	106,323
Deferral of unearned revenue	140,019
Recognition of unearned revenue	(128,728		)
Balance at December 31, 2017	117,614

Deferred revenue recognized in the three months ended June 30, 2018 and 2017 was $39.5 million and $32.8 million, respectively, and was $78.3 million and $65.4 million for the six month period ended June 30, 2018 and June 30, 2017, respectively.

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”), which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. The Company has no material contracted not recognized revenue as of June 30, 2018 or December 31, 2017.

At June 30, 2018 and December 31, 2017, the Company had long-term unearned revenue of $10.5 million and $8.6 million, respectively. 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 2025.