Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

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
Six months ended June 30, 2019	$	3,748	$	(704)	$	525	$	3,569

Schedule of disaggregated revenue

In the following table, segment revenue is disaggregated by geographical area for the three and six months ended June 30, 2019 and 2018 (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
U.S.	$	41,689	$	43,343	$	83,424	$	86,695
Canada		5,893		6,213		11,242		11,976
Global		2,803		2,554		5,543		5,033
Total RE/MAX Franchising		50,385		52,110		100,209		103,704
U.S.		16,381		—		33,053		—
Canada		1,500		—		3,385		—
Global		179		—		394		—
Total Marketing Funds		18,060		—		36,832		—
Other		2,936		2,167		5,518		3,215
Total	$	71,381	$	54,277	$	142,559	$	106,919

In the following table, segment revenue is disaggregated by owned or independent regions in the U.S. and Canada for the RE/MAX Franchising segment for the three and six months ended June 30, 2019 and 2018 (in thousands). The split between owned or independent regions is not material to the Marketing Funds or Other segments:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Company-owned Regions	$	34,019	$	35,692	$	64,037	$	67,055
Independent Regions		11,394		11,694		22,317		22,843
Global and Other		4,972		4,724		13,855		13,806
Total RE/MAX Franchising		50,385		52,110		100,209		103,704
Marketing Funds		18,060		—		36,832		—
Other		2,936		2,167		5,518		3,215
Total	$	71,381	$	54,277	$	142,559	$	106,919

Schedule of transaction price allocated to the remaining performance obligations

The following table includes estimated revenue by year expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period (in thousands):

	Remaining 6 months of 2019		2020		2021		2022		2023		2024		Thereafter		Total
Annual dues	$	12,615	$	4,417	$	—	$	—	$	—	$	—	$	—	$	17,032
Franchise sales		3,737		6,512		5,162		3,693		2,193		1,108		3,741		26,146
Total	$	16,352	$	10,929	$	5,162	$	3,693	$	2,193	$	1,108	$	3,741	$	43,178

Schedule of reconciliation of cash, both unrestricted and restricted

The following table reconciles the amounts presented for cash, both unrestricted and restricted, in the Condensed Consolidated Balance Sheets to the amounts presented in the Condensed Consolidated Statements of Cash Flows (in thousands):

	June 30,		December 31,
	2019		2018
Cash and cash equivalents	$	72,486	$	59,974
Restricted cash		23,627		—
Total cash, cash equivalents and restricted cash	$	96,113	$	59,974

Schedule of cost charges to intersegment

Costs charged from RE/MAX Franchising to the Marketing Funds for the three and six months ended June 30, 2019 are as follows (in thousands):

	Three Months Ended		Six Months Ended
	June 30,		June 30,
Technology development - operating	$	1,199	$	2,164
Technology development - capital		1,529		2,464
Marketing staff and administrative services		1,024		2,049
Total	$	3,752	$	6,677

Annual dues

Schedule of contract liability

The activity in the Company’s deferred revenue for annual dues is included in “Deferred revenue” and “Deferred revenue, net of current portion” on the Condensed Consolidated Balance Sheets, and consists of the following in aggregate (in thousands):

	Balance at beginning of period		New billings		Revenue recognized(a)		Balance at end of period
Six months ended June 30, 2019	$	15,877	$	18,828	$	(17,673)	$	17,032

(a) Revenue recognized related to the beginning balance was $4.5 million and $11.4 million for the three and six months ended June 30, 2019, respectively.

Franchise sales revenue

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
Six months ended June 30, 2019	$	27,560	$	3,283	$	(4,697)	$	26,146

(a) Revenue recognized related to the beginning balance was $2.1 million and $4.4 million for the three and six months ended June 30, 2019, respectively.