Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Annual Dues Deferred Revenue

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 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
Year ended December 31, 2019	$	15,877	$	35,514	$	(35,409)	$	15,982

(a) Revenue recognized related to the beginning balance was $14.4 million for the year ended December 31, 2019.

(b)

Commissions related to franchise sales

	Balance at		Expense		Additions to contract		Balance at end
	beginning of period		recognized		cost for new activity		of period
Year ended December 31, 2019	$	3,748	$	(1,290)	$	1,120	$	3,578

Schedule of disaggregated revenue

In the following table, segment revenue is disaggregated by geographical area (in thousands):

	Year Ended December 31,
	2019		2018		2017
U.S.	$	164,867	$	170,496	$	160,538
Canada		23,024		23,771		23,189
Global		11,745		10,237		9,431
Total RE/MAX Franchising		199,636		204,504		193,158
U.S.		64,906		—		—
Canada		6,559		—		—
Global		834		—		—
Total Marketing Funds		72,299		—		—
Motto Franchising (a)		4,542		2,536		556
Other		5,816		5,586		—
Total	$	282,293		212,626		193,714

(a) Revenue from the Motto Franchising segment is derived exclusively within the U.S.

In the following table, segment revenue is disaggregated by Company-owned or Independent Regions in the U.S., Canada and Global (in thousands):

	Year Ended December 31,
	2019		2018		2017
Company-owned Regions	$	128,972	$	133,925	$	125,092
Independent Regions		44,686		46,289		44,799
Global and Other		25,978		24,290		23,267
Total RE/MAX Franchising		199,636		204,504		193,158
Marketing Funds		72,299		—		—
Motto Franchising		4,542		2,536		556
Other		5,816		5,586		—
Total	$	282,293	$	212,626	$	193,714

Schedule of transaction price allocated to the remaining performance obligations

The following table includes estimated revenue by year, excluding certain other immaterial items, 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):

	2020		2021		2022		2023		2024		Thereafter		Total
Annual dues	$	15,982	$	—	$	—	$	—	$	—	$	—	$	15,982
Franchise sales		7,141		5,801		4,368		2,881		1,589		4,104		25,884
Total	$	23,123	$	5,801	$	4,368	$	2,881	$	1,589	$	4,104	$	41,866

Schedule of reconciliation of cash, both unrestricted and restricted

	As of December 31,
	2019		2018
Cash and cash equivalents	$	83,001	$	59,974
Restricted cash		20,600		—
Total cash, cash equivalents and restricted cash	$	103,601	$	59,974

Schedule of cost charges to intersegment

Costs charged from RE/MAX Franchising to the Marketing Funds are as follows (in thousands):

	Year Ended
	December 31, 2019
Technology development - operating	$	6,244
Technology development - capital		5,095
Marketing staff and administrative services (a)		3,763
Total	$	15,102

Schedule of Allowances Against Accounts and Notes Receivable

The activity in the Company’s allowances against accounts and notes receivable consists of the following (in thousands):

	Balance at beginning of period		Additions/charges to cost and expense for allowances for doubtful accounts (a)		Deductions/write-offs		Balance at end of period
Year Ended December 31, 2019	$	7,980	$	4,964	$	(406)	$	12,538
Year Ended December 31, 2018	$	7,223	$	2,257	$	(1,500)	$	7,980
Year Ended December 31, 2017	$	6,458	$	1,109	$	(344)	$	7,223

Franchise sales

Schedule of contract liability

	Balance at beginning of period		New billings		Revenue recognized(a)		Balance at end of period
Year ended December 31, 2019	$	27,560	$	7,750	$	(9,426)	$	25,884

(a) Revenue recognized related to the beginning balance was $8.4 million for the year ended December 31, 2019.