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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2020

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		Expense		Additions to contract		Balance at end
	beginning of period		recognized		cost for new activity		of period
Six Months Ended June 30, 2020	$	3,578	$	(711)	$	740	$	3,607

Schedule of disaggregated revenue

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
U.S.	$	31,420	$	41,689	$	72,529	$	83,424
Canada		4,625		5,893		9,935		11,242
Global		2,326		2,803		5,812		5,543
Total RE/MAX Franchising		38,371		50,385		88,276		100,209
U.S.		10,596		16,381		26,247		33,053
Canada		1,015		1,500		2,670		3,385
Global		154		179		370		394
Total Marketing Funds		11,765		18,060		29,287		36,832
Motto Franchising ^(a)		1,070		1,030		2,528		1,989
Other		1,001		1,906		2,388		3,529
Total	$	52,207	$	71,381	$	122,479	$	142,559

(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 June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Company-Owned Regions	$	29,365	$	39,823	$	64,406	$	75,730
Independent Regions		7,780		8,671		16,565		16,772
Global and Other		1,226		1,891		7,305		7,707
Total RE/MAX Franchising		38,371		50,385		88,276		100,209
Marketing Funds		11,765		18,060		29,287		36,832
Motto Franchising		1,070		1,030		2,528		1,989
Other		1,001		1,906		2,388		3,529
Total	$	52,207	$	71,381	$	122,479	$	142,559

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 6 months of 2020		2021		2022		2023		2024		2025		Thereafter		Total
Annual dues	$	12,258	$	4,130	$	—	$	—	$	—	$	—	$	—	$	16,388
Franchise sales		3,631		6,274		4,894		3,464		2,178		1,109		3,183		24,733
Total	$	15,889	$	10,404	$	4,894	$	3,464	$	2,178	$	1,109	$	3,183	$	41,121

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,
	2020		2019
Cash and cash equivalents	$	84,545	$	83,001
Restricted cash		14,752		20,600
Total cash, cash equivalents and restricted cash	$	99,297	$	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 June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Technology development - operating	$	3,722	$	1,199	$	6,693	$	2,164
Technology development - capital		116		1,529		760		2,464
Marketing staff and administrative services		983		1,024		2,211		2,049
Total	$	4,821	$	3,752	$	9,664	$	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, 2020	$	15,982	$	18,072	$	(17,666)	$	16,388

(a)	Revenue recognized related to the beginning balance was $4.5 million and $11.2 million for the three and six months ended June 30, 2020, respectively.

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
Six Months Ended June 30, 2020	$	25,884	$	3,758	$	(4,909)	$	24,733

(a)	Revenue recognized related to the beginning balance was $2.0 million and $4.6 million for the three and six months ended June 30, 2020, respectively.