Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of deferred revenue for annual dues

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
Nine Months Ended September 30, 2021	$	14,539	$	27,246	$	(26,508)	$	15,277

(a) Revenue recognized related to the beginning balance was $12.9 million for the nine months ended September 30, 2021, respectively.

Schedule of 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
Nine Months Ended September 30, 2021	$	3,690	$	(1,013)	$	1,135	$	3,812

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				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
U.S. Company-Owned Regions (a)	$	42,922	$	35,286	$	113,081	$	91,375
U.S. Independent Regions (a)		2,592		3,604		9,610		9,767
Canada Company-Owned Regions (a)		8,889		3,579		17,243		9,119
Canada Independent Regions (a)		1,258		2,090		5,827		6,162
Global		2,967		2,335		8,462		6,679
Fee revenue (b)		58,628		46,894		154,223		123,102
Franchise sales and other revenue (c)		5,995		4,058		17,845		16,126
Total Real Estate		64,623		50,952		172,068		139,228
U.S.		18,471		15,701		51,012		41,948
Canada		4,541		1,405		7,702		4,075
Global		257		184		742		554
Total Marketing Funds		23,269		17,290		59,456		46,577
Mortgage (d)		2,620		1,906		7,353		4,434
Other (d)		485		925		1,661		3,313
Total	$	90,997	$	71,073	$	240,538	$	193,552

(a) On July 21, 2021, the Company acquired the operating companies of the North America regions of RE/MAX INTEGRA. Fee revenue from these regions were previously recognized in the U.S. and Canada Independent Regions. See Note 5, Acquisitions, for information related to this transaction.

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

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

(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	$	7,146	$	8,131	$	—	$	—	$	—	$	—	$	—	$	15,277
Franchise sales		1,850		6,646		5,295		4,078		2,812		1,509		3,161		25,351
Total	$	8,996	$	14,777	$	5,295	$	4,078	$	2,812	$	1,509	$	3,161	$	40,628

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,
	2021		2020
Cash and cash equivalents	$	119,446	$	101,355
Restricted cash		25,150		19,872
Total cash, cash equivalents and restricted cash	$	144,596	$	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				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Technology - operating	$	3,213	$	2,721	$	10,046	$	9,414
Technology - capital		243		104		647		864
Marketing staff and administrative services		1,725		988		4,032		3,199
Total	$	5,181	$	3,813	$	14,725	$	13,477

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, 2021	$	25,069	$	6,933	$	(6,651)	$	25,351

(a) Revenue recognized related to the beginning balance was $6.0 million for the nine months ended September 30, 2021, respectively.