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.