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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 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
Nine Months Ended September 30, 2020	$	3,578	$	(1,076)	$	1,142	$	3,644

Schedule of disaggregated revenue

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
U.S.	$	42,257	$	42,013	$	114,786	$	125,437
Canada		5,898		5,886		15,833		17,128
Global		2,797		3,182		8,609		8,725
Total RE/MAX Franchising		50,952		51,081		139,228		151,290
U.S.		15,701		16,163		41,948		49,216
Canada		1,405		1,644		4,075		5,029
Global		184		227		554		621
Total Marketing Funds		17,290		18,034		46,577		54,866
Motto Franchising ^(a)		1,906		1,178		4,434		3,167
Other		925		1,248		3,313		4,777
Total	$	71,073	$	71,541	$	193,552	$	214,100

(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				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Company-Owned Regions	$	40,226	$	39,693	$	104,632	$	115,423
Independent Regions		8,792		8,954		25,357		25,726
Global and Other		1,934		2,434		9,239		10,141
Total RE/MAX Franchising		50,952		51,081		139,228		151,290
Marketing Funds		17,290		18,034		46,577		54,866
Motto Franchising		1,906		1,178		4,434		3,167
Other		925		1,248		3,313		4,777
Total	$	71,073	$	71,541	$	193,552	$	214,100

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):


	Remainder of 2020		2021		2022		2023		2024		2025		Thereafter		Total
Annual dues	$	6,500	$	8,018	$	—	$	—	$	—	$	—	$	—	$	14,518
Franchise sales		1,846		6,572		5,230		3,831		2,555		1,350		3,399		24,783
Total	$	8,346	$	14,590	$	5,230	$	3,831	$	2,555	$	1,350	$	3,399	$	39,301

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):


	September 30,		December 31,
	2020		2019
Cash and cash equivalents	$	89,135	$	83,001
Restricted cash		15,635		20,600
Total cash, cash equivalents and restricted cash	$	104,770	$	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				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Technology development - operating	$	2,721	$	1,523	$	9,414	$	3,687
Technology development - capital		104		1,420		864		3,884
Marketing staff and administrative services		988		589		3,199		2,638
Total	$	3,813	$	3,532	$	13,477	$	10,209

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
Nine Months Ended September 30, 2020	$	15,982	$	24,840	$	(26,304)	$	14,518

(a)	Revenue recognized related to the beginning balance was $2.4 million and $13.7 million for the three and nine months ended September 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
Nine Months Ended September 30, 2020	$	25,884	$	6,029	$	(7,130)	$	24,783

(a)	Revenue recognized related to the beginning balance was $2.0 million and $6.6 million for the three and nine months ended September 30, 2020, respectively.