Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of Annual Dues Deferred Revenue

The activity in the Company’s deferred revenue for annual dues consists of the following (in thousands):
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	Balance at beginning of period		New billings		Revenue recognized (a)		Balance at end of period
Six Months Ended June 30, 2021	$	14,539	$	18,808	$	(17,541)	$	15,806

(a) Revenue recognized related to the beginning balance was $10.6 million for the six months ended June 30, 2021, respectively.

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
Six Months Ended June 30, 2021	$	3,690	$	(714)	$	638	$	3,614

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 June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
U.S. Company-Owned Regions	$	37,613	$	25,511	$	70,159	$	56,089
U.S. Independent Regions		3,730		3,167		7,018		6,163
Canada Company-Owned Regions		4,800		2,459		8,354		5,540
Canada Independent Regions		2,364		2,033		4,569		4,072
Global		2,854		1,796		5,495		4,344
Fee revenue (a)		51,361		34,966		95,595		76,208
Franchise sales and other revenue (b)		4,930		3,405		11,850		12,068
Total Real Estate		56,291		38,371		107,445		88,276
U.S.		16,359		10,596		32,541		26,247
Canada		1,424		1,015		3,161		2,670
Global		259		154		485		370
Total Marketing Funds (c)		18,042		11,765		36,187		29,287
Mortgage (d)		2,410		1,070		4,733		2,528
Other (d)		503		1,001		1,176		2,388
Total	$	77,246	$	52,207	$	149,541	$	122,479

(a) Fee revenue includes Continuing franchise fees, Annual dues and Broker fees. Amounts for the three months ended June 30, 2020 are heavily impacted by temporary COVID-19 waivers.

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

(c) Amounts for the three months ended June 30, 2020 are heavily impacted by temporary COVID-19 waivers.

(d) 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	$	12,305	$	3,501	$	—	$	—	$	—	$	—	$	—	$	15,806
Franchise sales		3,576		6,223		4,868		3,640		2,365		1,208		2,775		24,655
Total	$	15,881	$	9,724	$	4,868	$	3,640	$	2,365	$	1,208	$	2,775	$	40,461

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, 2021		December 31, 2020
Cash and cash equivalents	$	107,252	$	101,355
Restricted cash		14,425		19,872
Total cash, cash equivalents and restricted cash	$	121,677	$	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 June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Technology - operating	$	3,233	$	3,722	$	6,833	$	6,693
Technology - capital		224		116		404		760
Marketing staff and administrative services		1,189		983		2,307		2,211
Total	$	4,646	$	4,821	$	9,544	$	9,664

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, 2021	$	25,069	$	4,127	$	(4,541)	$	24,655

(a) Revenue recognized related to the beginning balance was $4.2 million for the six months ended June 30, 2021, respectively.