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Revenues
6 Months Ended
Jun. 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

June 30,

June 30,

June 30,

(In millions)

2020

2019

2020

2019

2020

2019

Major service line

Residential Pest Control

$

182

$

182

$

$

$

182

$

182

Commercial Pest Control

107

105

107

105

Termite and Home Services

196

183

196

183

Sales of Products and Other

32

25

32

25

European Pest Control

17

17

Total

$

517

$

495

$

17

$

$

534

$

494

European Pest Control

Terminix

and Other

Total

Six months ended

Six months ended

Six months ended

June 30,

June 30,

June 30,

(In millions)

2020

2019

2020

2019

2020

2019

Major service line

Residential Pest Control

$

341

$

335

$

$

$

341

$

335

Commercial Pest Control

213

199

213

199

Termite and Home Services

351

339

351

339

Sales of Products and Other

50

41

50

41

European Pest Control

35

35

Total

$

955

$

914

$

35

$

$

990

$

913

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 $31 million and $38 million as of June 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. Terminix had deferred revenue of $95 million and $92 million as of June 30, 2020 and December 31, 2019, respectively.

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

(In millions)

Deferred revenue

Balance, December 31, 2019

$

92

Deferral of revenue

63

Recognition of deferred revenue

(59)

Balance, June 30, 2020

$

95

Balance, December 31, 2018

$

91

Deferral of revenue

75

Recognition of deferred revenue

(68)

Balance, June 30, 2019

$

97

Approximately $17 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 June 30, 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 13 for further discussion.

There was approximately $16 million and $40 million of revenue recognized in the three and six months ended June 30, 2020, that was included in the deferred revenue balance as of December 31, 2019. There was approximately $19 million and $44 million of revenue recognized in the three and six months ended June 30, 2019, that was included in the deferred revenue balance as of December 31, 2018.