Annual report pursuant to Section 13 and 15(d)

REVENUE

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REVENUE
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Sales and usage-based taxes are excluded from revenues. No sales to an individual customer or in a country other than the United States accounted for 10% or more of the sales for the periods listed in the following tables. Revenue, classified by the major geographic areas in which our customers are located, was as follows:
2024 2023 2022
(in thousands)
United States $ 3,143,372  $ 2,853,321  $ 2,498,363 
Other countries 245,336  219,957  197,460 
Total Revenues $ 3,388,708  $ 3,073,278  $ 2,695,823 
Revenue from external customers, classified by significant product and service offerings, was as follows:
(in thousands) 2024 2023 2022
Residential revenue $ 1,535,104  $ 1,409,872  $ 1,207,089 
Commercial revenue 1,125,964  1,024,176  920,625 
Termite completions, bait monitoring, renewals, & ancillary 688,186  605,533  535,494 
Franchise revenues 16,935  16,475  15,590 
Other revenues 22,519  17,222  17,025 
Total Revenues $ 3,388,708  $ 3,073,278  $ 2,695,823 
Changes in unearned revenues were as follows:
Year Ended December 31,
2024 2023
(in thousands)
Beginning balance $ 210,059  $ 187,994 
Deferral of unearned revenue 267,100  253,776 
Recognition of unearned revenue (253,287) (231,711)
Ending balance $ 223,872  $ 210,059 
Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”), which includes both unearned revenue and revenue that will be billed and recognized in future periods. The Company has no material contracted but not yet recognized revenue as of December 31, 2024 or December 31, 2023.
At December 31, 2024 and December 31, 2023, the Company had long-term unearned revenue of $43.0 million and $37.7 million, respectively. Unearned short-term revenue is recognized over the next 12-month period. We recognized $172.4 million and $158.1 million of revenue in the years ended December 31, 2024 and December 31, 2023, respectively, that was included in the balance of unearned revenue at the beginning of each respective fiscal year. 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 December 31, 2024, we have $23.4 million of unamortized capitalized costs to obtain a contract, of which $19.3 million is recorded within other current assets and $4.1 million is recorded within other assets on our consolidated statement of financial position. During the year ended December 31, 2024, we recorded approximately $22.1 million amortization of capitalized costs, which is recorded within sales, general and administrative expense on our consolidated statement of income. As of December 31, 2023, we had $22.0 million of unamortized capitalized costs to obtain a contract, of which $15.3 million was recorded within other current assets and $6.7 million was recorded within other assets on our consolidated statement of financial position. During the year ended December 31, 2023, we recorded $8.6 million amortization of capitalized costs.