Quarterly report pursuant to Section 13 or 15(d)

UNEARNED REVENUE

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UNEARNED REVENUE
6 Months Ended
Jun. 30, 2018
Revenue from Contract with Customer [Abstract]  
Unearned Revenue
REVENUE
Adoption of ASC 606, "Revenue from Contracts with Customers". On January 1, 2018, and the Company adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2017. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605.
There was no material impact on the Company’s financial statements as a result of adopting ASC 606 for the six months ended June 30, 2018 and 2017, or the twelve months ended December 31, 2017.
The following tables present our revenues disaggregated by revenue source (in thousands, unaudited).
Sales and usage-based taxes are excluded from revenues. No sales to an individual customer or country other than the United States accounted for more than 10% of the six months ended June 30, 2018 and 2017, respectively. Revenue, classified by the major geographic areas in which our customers are located, was as follows:

 
(In thousands)
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018

 
2017

 
2018

 
2017

United States
$
443,782

 
$
400,300

 
$
819,741

 
$
745,880

Other countries
36,679

 
33,255

 
69,462

 
62,922

Total Revenues
$
480,461

 
$
433,555

 
$
889,203

 
$
808,802


Revenue from external customers, classified by significant product and service offerings, was as follows:
 
(In thousands)
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018

 
2017

 
2018
 
2017
Residential contract revenue
$
169,411

 
$
151,252

 
$
313,445

 
$
283,596

Commercial contract revenue
136,839

 
129,174

 
268,918

 
254,006

Termite completions, bait monitoring, & renewals
93,874

 
80,950

 
170,365

 
146,602

Other revenues
80,337

 
72,179

 
136,475

 
124,598

Total Revenues
$
480,461

 
$
433,555

 
$
889,203

 
$
808,802

UNEARNED REVENUE
Changes in unearned revenue were as follows:
(In thousands)
Six Months ended June 30, 2018
Balance at December 31, 2017
$
117,614

Deferral of unearned revenue
95,948

Recognition of unearned revenue
(78,290
)
Balance at June 30, 2018
135,272

 
 
Year ended December 31, 2017
 
Balance at December 31, 2016
$
106,323

Deferral of unearned revenue
140,019

Recognition of unearned revenue
(128,728
)
Balance at December 31, 2017
117,614



Deferred revenue recognized in the three months ended June 30, 2018 and 2017 was $39.5 million and $32.8 million, respectively, and was $78.3 million and $65.4 million for the six month period ended June 30, 2018 and June 30, 2017, respectively.
Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”), which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. The Company has no material contracted not recognized revenue as of June 30, 2018 or December 31, 2017.
At June 30, 2018 and December 31, 2017, the Company had long-term unearned revenue of $10.5 million and $8.6 million, respectively. 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 2025.