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Revenues
3 Months Ended
Mar. 31, 2020
Revenues[Abstract]  
Revenues Note 3. Revenues

The following table presents 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 16, our reportable segment is Terminix. Revenue related to fumigation completion services and the related renewals (the “Fumigation Services”) is shown in Fumigation below and prior period amounts related to the Fumigation Services have been reclassified from Termite and Home Services to Fumigation 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

March 31,

March 31,

March 31,

(In millions)

2020

2019

2020

2019

2020

2019

Major service line

Residential Pest Control

$

159

$

154

$

$

$

159

$

154

Commercial Pest Control

107

94

107

94

Termite and Home Services

148

146

148

146

Sales of Products and Other

18

16

18

16

Fumigation

7

10

7

10

European Pest Control

18

18

Total

$

438

$

419

$

18

$

$

456

$

419

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 $32 million and $38 million as of March 31, 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. Terminix had deferred revenue of $93 million and $92 million as of March 31, 2020 and December 31, 2019, respectively.

Changes in deferred revenue for the three months ended March 31, 2020 and 2019 were as follows:

(In millions)

Deferred revenue

Balance, December 31, 2019

$

92

Deferral of revenue

31

Recognition of deferred revenue

(31)

Balance, March 31, 2020

$

93

Balance, December 31, 2018

$

91

Deferral of revenue

38

Recognition of deferred revenue

(33)

Balance, March 31, 2019

$

96

Approximately $15 million of deferred revenue is recognized in the Condensed Consolidated Statements of Financial Position in European Pest Control and Other as of March 31, 2020 and December 31, 2019, primarily related to our acquisition of Nomor. This amount is being evaluated and is subject to change as we finalize our purchase accounting. See Note 14 for further discussion.

There was approximately $24 million of revenue recognized in the three months ended March 31, 2020, that was included in the deferred revenue balance as of December 31, 2019. There was approximately $25 million of revenue recognized in the three months ended March 31, 2019, that was included in the deferred revenue balance as of December 31, 2018.