Quarterly report pursuant to Section 13 or 15(d)

REVENUE

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REVENUE
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE
Revenue, classified by the major geographic areas in which our customers are located, was as follows:
Three Months Ended
March 31,
(in thousands) 2024 2023
United States $ 693,860  $ 609,311 
Other countries 54,489  48,704 
Total Revenues $ 748,349  $ 658,015 
Revenue from external customers, classified by significant product and service offerings, was as follows:
Three Months Ended
March 31,
(in thousands) 2024 2023
Residential revenue $ 329,338  $ 282,757 
Commercial revenue 258,114  231,707 
Termite completions, bait monitoring, & renewals 152,060  136,131 
Franchise revenues 3,961  3,789 
Other revenues 4,876  3,631 
Total Revenues $ 748,349  $ 658,015 
Revenues classified by significant product and service offerings for the three months ended March 31, 2023 were misstated by an immaterial amount and have been restated from the amounts previously reported to correct the classification of such revenues. There was no impact on our condensed consolidated statements of income, financial position, or cash flows.
The Company records unearned revenue when we have either received payment or contractually have the right to bill for services in advance of the services or performance obligations being performed. Unearned revenue recognized in the three months ended March 31, 2024 and 2023 was $61.9 million and $55.5 million, respectively. Changes in unearned revenue were as follows:
Three Months Ended
March 31,
(in thousands) 2024 2023
Beginning balance $ 210,059  $ 187,994 
Deferral of unearned revenue 74,796  65,626 
Recognition of unearned revenue (61,888) (55,466)
Ending balance $ 222,967  $ 198,154 
As of March 31, 2024 and December 31, 2023, the Company had long-term unearned revenue of $36.9 million and $37.7 million, respectively, recorded in other long-term accrued liabilities. 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 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 March 31, 2024, we have $18.4 million of unamortized capitalized costs to obtain a contract, of which $15.4 million is recorded within other current assets and $3.0 million is recorded within other assets on our condensed consolidated statement of financial position. During the quarter ended March 31, 2024, we recorded approximately $3.8 million amortization of capitalized costs, which is recorded within sales, general and administrative expense on our condensed consolidated statement of income. During the quarter ended March 31, 2023, we had no unamortized capitalized costs to obtain a contract and we recorded no amortization of capitalized costs.