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Revenue (Tables)
 9 Months Ended
Sep. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Schedule of disaggregated revenue

In the following table, segment revenue is disaggregated by geographical area for the three and nine months ended September 30, 2018 and 2017 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 

 

Nine Months Ended September 30, 

 

 

 

 

 

2017

 

 

 

 

2017

 

    

2018

    

As adjusted*

    

2018

    

As adjusted*

U.S.

 

$

40,872

 

$

36,615

 

$

118,794

 

$

109,054

Canada

 

 

6,170

 

 

6,599

 

 

18,146

 

 

17,573

Global and Other

 

 

5,408

 

 

5,694

 

 

19,214

 

 

18,332

Total RE/MAX Franchising

 

 

52,450

 

 

48,908

 

 

156,154

 

 

144,959

Other

 

 

2,416

 

 

163

 

 

5,631

 

 

245

Total

 

$

54,866

 

$

49,071

 

$

161,785

 

$

145,204

*See above within Note 3, Revenue for more information

In the following table, segment revenue is disaggregated by owned or independent regions in the U.S. and Canada for the three and nine months ended September 30, 2018 and 2017 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 

 

Nine Months Ended September 30, 

 

 

 

 

 

2017

 

 

 

 

2017

 

    

2018

    

As adjusted*

    

2018

    

As adjusted*

Owned Regions

 

$

35,138

 

$

31,616

 

$

102,193

 

$

93,165

Independent Regions

 

 

11,904

 

 

11,598

 

 

34,747

 

 

33,462

Global and Other

 

 

5,408

 

 

5,694

 

 

19,214

 

 

18,332

Total RE/MAX Franchising

 

 

52,450

 

 

48,908

 

 

156,154

 

 

144,959

Other

 

 

2,416

 

 

163

 

 

5,631

 

 

245

Total

 

$

54,866

 

$

49,071

 

$

161,785

 

$

145,204

*See above within Note 3, Revenue for more information

Schedule of transaction price allocated to the remaining performance obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Remaining 3
months of
2018

    

2019

    

2020

    

2021

    

2022

    

2023

    

Thereafter

    

Total

Annual dues

 

$

7,376

 

$

9,395

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

$

16,771

Franchise sales

 

 

1,916

 

 

6,970

 

 

5,662

 

 

4,246

 

 

2,710

 

 

1,284

 

 

4,342

 

 

27,130

Total

 

$

9,292

 

$

16,365

 

$

5,662

 

$

4,246

 

$

2,710

 

$

1,284

 

$

4,342

 

$

43,901

 

Annual dues  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Schedule of contract liability

The activity in the Company’s annual dues deferred revenue consists of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Balance at
beginning of period

    

New billings

    

Revenue recognized(a)

    

Balance at end
of period

Nine months ended September 30, 2018

 

$

15,297

 

$

28,249

 

$

(26,775)

 

$

16,771

(a)Revenue recognized related to the beginning balance was $2.4 million and $13.4 million for the three and nine months ended September 30, 2018, respectively.

Franchise sales revenue  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Schedule of contract liability

The activity in the Company’s franchise sales deferred revenue accounts consists of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Balance at
beginning of period

    

New billings

    

Revenue recognized(a)

    

Balance at end
of period

Nine months ended September 30, 2018

 

$

27,943

 

$

6,083

 

$

(6,896)

 

$

27,130

(a)Revenue recognized related to the beginning balance was $1.9 million and $5.7 million for the three and nine months ended September 30, 2018.

Commissions related to franchise sales

The activity in the Company’s capitalized contract costs for commissions (which are included in “other current assets” and “other assets, net of current portion” on the Condensed Consolidated Balance Sheets) consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at

 

 

 

Additions to contract

 

Balance at end

 

    

beginning of period

    

Expense recognized

    

cost for new activity

    

of period

Nine months ended September 30, 2018

 

$

3,532

 

$

(956)

 

$

1,146

 

$

3,722

 

ASU 2014-09  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Schedule of Cumulative impact on financial statements

The following tables summarize the impacts of the new revenue standard adoption on the Company’s condensed consolidated financial statements (in thousands, except per share information):

Condensed Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

Impact of Changes in Accounting Policies

 

 

As of December 31, 2017

 

    

As previously
reported

    

Adjustments

    

As adjusted

Accounts and notes receivable, current portion, net

 

$

21,304

 

$

(1,020)

 

$

20,284

Income taxes receivable

 

 

870

 

 

93

 

 

963

Other current assets

 

 

6,924

 

 

1,050

 

 

7,974

Deferred tax assets, net

 

 

59,151

 

 

3,690

 

 

62,841

Other assets, net of current portion

 

 

1,563

 

 

2,460

 

 

4,023

Income taxes payable

 

 

133

 

 

(36)

 

 

97

Deferred revenue

 

 

18,918

 

 

6,350

 

 

25,268

Deferred revenue, net of current

 

 

 —

 

 

20,228

 

 

20,228

Retained earnings

 

 

16,027

 

 

(7,627)

 

 

8,400

Accumulated other comprehensive income, net of tax

 

 

515

 

 

(56)

 

 

459

Non-controlling interest

 

 

398,348

 

 

12,586

 

 

410,934

Condensed Consolidated Statement of Income

 

 

 

 

 

 

 

 

 

 

 

 

Impact of Changes in Accounting Policies

 

 

Three Months Ended September 30, 2017

 

    

As previously
reported

    

Adjustments

    

As adjusted

Franchise sales and other revenue

 

$

5,611

 

$

(306)

 

$

5,305

Selling, operating and administrative expenses

 

 

31,832

 

 

11

 

 

31,843

Provision for income taxes

 

 

3,091

 

 

(70)

 

 

3,021

Net income

 

 

7,537

 

 

(247)

 

 

7,290

Net income attributable to non-controlling interest

 

 

3,702

 

 

(129)

 

 

3,573

Net income attributable to RE/MAX Holdings, Inc.

 

 

3,835

 

 

(118)

 

 

3,717

Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock:

 

 

 

 

 

 

 

 

 

Basic

 

 

0.22

 

 

(0.01)

 

 

0.21

Diluted

 

 

0.22

 

 

(0.01)

 

 

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

Impact of Changes in Accounting Policies

 

 

Nine Months Ended September 30, 2017

 

    

As previously
reported

    

Adjustments

    

As adjusted

Franchise sales and other revenue

 

$

19,065

 

$

(1,221)

 

$

17,844

Selling, operating and administrative expenses

 

 

79,263

 

 

(96)

 

 

79,167

Provision for income taxes

 

 

10,883

 

 

(97)

 

 

10,786

Net income

 

 

33,245

 

 

(1,028)

 

 

32,217

Net income attributable to non-controlling interest

 

 

16,968

 

 

(466)

 

 

16,502

Net income attributable to RE/MAX Holdings, Inc.

 

 

16,277

 

 

(562)

 

 

15,715

Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock:

 

 

 

 

 

 

 

 

 

Basic

 

 

0.92

 

 

(0.03)

 

 

0.89

Diluted

 

 

0.92

 

 

(0.03)

 

 

0.89

Condensed Consolidated Statement of Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

Impact of Changes in Accounting Policies

 

 

Three Months Ended September 30, 2017

 

    

As previously
reported

    

Adjustments

    

As adjusted

Net income

 

$

7,537

 

$

(247)

 

$

7,290

Change in cumulative translation adjustment

 

 

536

 

 

(29)

 

 

507

Comprehensive income

 

 

8,073

 

 

(276)

 

 

7,797

Comprehensive income attributable to non-controlling interest

 

 

3,987

 

 

(128)

 

 

3,859

Comprehensive income attributable to RE/MAX Holdings, Inc., net of tax

 

 

4,086

 

 

(148)

 

 

3,938

 

 

 

 

 

 

 

 

 

 

 

 

 

Impact of Changes in Accounting Policies

 

 

Nine Months Ended September 30, 2017

 

    

As previously
reported

    

Adjustments

    

As adjusted

Net income

 

$

33,245

 

$

(1,028)

 

$

32,217

Change in cumulative translation adjustment

 

 

999

 

 

(52)

 

 

947

Comprehensive income

 

 

34,244

 

 

(1,080)

 

 

33,164

Comprehensive income attributable to non-controlling interest

 

 

17,500

 

 

(465)

 

 

17,035

Comprehensive income attributable to RE/MAX Holdings, Inc., net of tax

 

 

16,744

 

 

(615)

 

 

16,129

Condensed Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

Impact of Changes in Accounting Policies

 

 

Nine Months Ended September 30, 2017

 

    

As previously
reported

    

Adjustments

    

As adjusted

Net income

 

$

33,245

 

$

(1,028)

 

$

32,217

Deferred income tax expense

 

 

3,919

 

 

(97)

 

 

3,822

Changes in operating assets and liabilities

 

 

(100)

 

 

1,125

 

 

1,025