Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2020

Commissions related to franchise sales

	Balance at		Expense		Additions to contract		Balance at end
	beginning of period		recognized		cost for new activity		of period
Three months ended March 31, 2020	$	3,578	$	(367)	$	444	$	3,655

Schedule of disaggregated revenue

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

	Three Months Ended March 31,
	2020		2019
U.S.	$	41,109	$	41,735
Canada		5,310		5,349
Global		3,486		2,740
Total RE/MAX Franchising		49,905		49,824
U.S.		15,651		16,672
Canada		1,655		1,885
Global		216		215
Total Marketing Funds		17,522		18,772
Motto Franchising (a)		1,458		959
Other		1,387		1,623
Total	$	70,272	$	71,178

(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):

	Three Months Ended March 31,
	2020		2019
Company-owned Regions	$	29,244	$	30,018
Independent Regions		10,794		10,923
Global and Other		9,867		8,883
Total RE/MAX Franchising		49,905		49,824
Marketing Funds		17,522		18,772
Motto Franchising		1,458		959
Other		1,387		1,623
Total	$	70,272	$	71,178

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):

	Remaining 9 months of 2020		2021		2022		2023		2024		2025		Thereafter		Total
Annual dues	$	15,665	$	1,291	$	—	$	—	$	—	$	—	$	—	$	16,956
Franchise sales		5,437		6,088		4,673		3,215		1,925		992		3,061		25,391
Total	$	21,102	$	7,379	$	4,673	$	3,215	$	1,925	$	992	$	3,061	$	42,347

Schedule of reconciliation of cash, both unrestricted and restricted

	March 31,		December 31,
	2020		2019
Cash and cash equivalents	$	80,905	$	83,001
Restricted cash		24,195		20,600
Total cash, cash equivalents and restricted cash	$	105,100	$	103,601

Schedule of cost charges to intersegment

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

	Three Months Ended March 31,
	2020		2019
Technology development - operating	$	2,971	$	965
Technology development - capital		644		935
Marketing staff and administrative services		1,228		1,025
Total	$	4,843	$	2,925

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
Three months ended March 31, 2020	$	15,982	$	9,895	$	(8,921)	$	16,956

(a) Revenue recognized related to the beginning balance was $6.8 million for the three months ended March 31, 2020.

Franchise sales

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
Three months ended March 31, 2020	$	25,884	$	2,154	$	(2,647)	$	25,391

(a) Revenue recognized related to the beginning balance was $2.5 million for the three months ended March 31, 2020.