Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Significant Accounting Policies

Schedule of deferred revenue for franchise sales and annual dues

The activity consists of the following (in thousands):

	Balance at				Revenue		Balance at
	beginning of period		New billings		recognized (a)		end of period
Franchise sales	$	25,069	$	9,787	$	(8,813)	$	26,043
Annual dues		14,539		36,030		(35,549)		15,020
Other		5,538		14,054		(14,548)		5,044
	$	45,146	$	59,871	$	(58,910)	$	46,107

(a) Revenue recognized related to the beginning balance for Franchise Sales and Annual Dues was $7.7 million and $13.4 million, respectfully, for the year ended December 31, 2021.

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 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
Year Ended December 31, 2021	$	3,690	$	2,390	$	(2,070)	$	4,010

Schedule of disaggregated revenue

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

	Year Ended
	December 31,
	2021		2020		2019
U.S. Company-Owned Regions (a)	$	154,981	$	126,406	$	132,670
U.S. Independent Regions (a)		11,392		13,345		13,380
Canada Company-Owned Regions (a)		27,234		12,659		13,647
Canada Independent Regions (a)		6,510		8,301		8,187
Global		11,501		9,255		9,369
Fee revenue (b)		211,618		169,966		177,253
Franchise sales and other revenue (c)		23,506		20,826		22,383
Total Real Estate		235,124		190,792		199,636
U.S. (a)		68,662		57,974		64,906
Canada (a)		12,722		5,634		6,559
Global		1,007		794		834
Total Marketing Funds		82,391		64,402		72,299
Mortgage (d)		10,051		6,610		4,542
Other (d)		2,135		4,197		5,816
Total	$	329,701	$	266,001	$	282,293

(a) On July 21, 2021, the Company acquired INTEGRA. Fee revenue from these regions was previously recognized in the U.S. and Canada Independent Regions and Marketing Funds fees were not charged. See Note 6, Acquisitions, for more 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):

	2022		2023		2024		2025		2026		Thereafter		Total
Annual dues	$	15,020	$	—	$	—	$	—	$	—	$	—	$	15,020
Franchise sales		7,094		5,761		4,562		3,298		1,904		3,424		26,043
Total	$	22,114	$	5,761	$	4,562	$	3,298	$	1,904	$	3,424	$	41,063

Schedule of reconciliation of cash, both unrestricted and restricted

The following table reconciles the amounts presented for cash, both unrestricted and restricted, in the Consolidated Balance Sheets to the amounts presented in the Consolidated Statements of Cash Flows (in thousands):

	December 31,
	2021		2020
Cash and cash equivalents	$	126,270	$	101,355
Restricted cash		32,129		19,872
Total cash, cash equivalents and restricted cash	$	158,399	$	121,227

Schedule of cost charges to intersegment

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

	Year Ended
	December 31,
	2021		2020		2019
Technology - operating	$	13,396	$	12,245	$	6,244
Technology - capital		954		1,017		5,095
Marketing staff and administrative services		5,782		4,527		3,763
Total	$	20,132	$	17,789	$	15,102

Schedule of allowances against accounts and notes receivable

The activity in the Company’s allowances against accounts and notes receivable consists of the following (in thousands):

	Balance at beginning of period		Charges/(benefits) to expense for changes in Allowance for doubtful accounts (a)		Write-offs		Balance at end of period
Year Ended December 31, 2021	$	11,724	$	(1,345)	$	(815)	$	9,564
Year Ended December 31, 2020	$	12,538	$	2,903	$	(3,717)	$	11,724
Year Ended December 31, 2019	$	7,980	$	4,964	$	(406)	$	12,538

(a) Includes approximately ($0.4) million, $0.6 million and $1.5 million of (benefit)/expense attributable to the Marketing Funds for the years ended December 31, 2021, 2020 and 2019, respectively.