Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of Annual Dues Deferred Revenue

The activity in the Company’s deferred revenue for annual dues 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, 2021	$	14,539	$	10,277	$	(8,672)	$	16,144

(a) Revenue recognized related to the beginning balance was $6.3 million for the three months ended March 31, 2021.

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 beginning of period		Expense recognized		Additions to contract cost for new activity		Balance at end of period
Three Months Ended March 31, 2021	$	3,690	$	(421)	$	320	$	3,589

Schedule of disaggregated revenue

In the following table, segment revenue is disaggregated by Company-Owned or Independent Regions, where applicable, and by geographical area (in thousands):

	Three Months Ended March 31,
	2021		2020
U.S. Company-Owned Regions	$	32,546	$	30,578
U.S. Independent Regions		3,288		2,996
Canada Company-Owned Regions		3,554		3,081
Canada Independent Regions		2,205		2,039
Global		2,641		2,548
Fee revenue (a)		44,234		41,242
Franchise sales and other revenue (b)		6,920		8,663
Total Real Estate		51,154		49,905
U.S.		16,182		15,651
Canada		1,737		1,655
Global		226		216
Total Marketing Funds		18,145		17,522
Mortgage (c)		2,323		1,458
Other (c)		673		1,387
Total	$	72,295	$	70,272

(a) Fee revenue includes Continuing franchise fees, Annual dues and Broker fees.

(b) Franchise sales and other revenue is derived primarily within the U.S.

(c) Revenue from Mortgage and Other are derived exclusively within the U.S.

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 2021		2022		2023		2024		2025		2026		Thereafter		Total
Annual dues	$	15,373	$	771	$	—	$	—	$	—	$	—	$	—	$	16,144
Franchise sales		5,244		5,898		4,533		3,300		2,023		1,049		2,678		24,725
Total	$	20,617	$	6,669	$	4,533	$	3,300	$	2,023	$	1,049	$	2,678	$	40,869

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):

	March 31, 2021		December 31, 2020
Cash and cash equivalents	$	102,632	$	101,355
Restricted cash		21,500		19,872
Total cash, cash equivalents and restricted cash	$	124,132	$	121,227

Schedule of cost charges to intersegment

Costs charged from Real Estate to the Marketing Funds are as follows (in thousands):

	Three Months Ended March 31,
	2021		2020
Technology - operating	$	3,600	$	2,971
Technology - capital		180		644
Marketing staff and administrative services		1,118		1,228
Total	$	4,898	$	4,843

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, 2021	$	25,069	$	2,005	$	(2,349)	$	24,725

(a) Revenue recognized related to the beginning balance was $2.3 million for the three months ended March 31, 2021.