XML 33 R22.htm IDEA: XBRL DOCUMENT v3.22.1
Summary of Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2022
Summary of Significant Accounting Policies  
Schedule of deferred revenue for franchise sales and annual dues

Deferred revenue is primarily driven by Franchise sales and Annual dues, as discussed above, and is included in “Deferred revenue” and “Deferred revenue, net of current portion” on the Consolidated Balance Sheets. Other deferred revenue is primarily related to event-based revenue. The activity consists of the following (in thousands):

Balance at

Revenue

Balance at

January 1, 2022

New billings

recognized (a)

March 31, 2022

Franchise sales

$

26,043

$

2,685

$

(2,141)

$

26,587

Annual dues

15,020

10,053

(8,920)

16,153

Other

5,044

4,219

(8,432)

831

$

46,107

$

16,957

$

(19,493)

$

43,571

(a)

Revenue recognized related to the beginning balance for Franchise sales and Annual dues were $2.1 million and $6.7 million, respectively, for the three months ended March 31, 2022.

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):

Additions to

Balance at

contract cost

Expense

Balance at

January 1, 2022

for new activity

recognized

March 31, 2022

Three Months Ended March 31, 2022

$

4,010

$

437

$

(501)

$

3,946

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, 

2022

2021

U.S. Company-Owned Regions (a)

$

39,154

$

32,546

U.S. Independent Regions (a)

1,701

3,288

Canada Company-Owned Regions (a)

10,475

3,554

Canada Independent Regions (a)

703

2,205

Global

3,092

2,641

Fee revenue (b)

55,125

44,234

Franchise sales and other revenue (c)

9,612

6,920

Total Real Estate

64,737

51,154

U.S. (a)

17,559

16,182

Canada (a)

5,013

1,737

Global

279

226

Total Marketing Funds

22,851

18,145

Mortgage (d)

3,028

2,323

Other (d)

388

673

Total

$

91,004

$

72,295

(a)In July 2021, the Company acquired the operating companies of the North America regions of RE/MAX INTEGRA (“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 2022

2023

2024

2025

2026

2027

Thereafter

Total

Annual dues

$

15,370

$

783

$

$

$

$

$

$

16,153

Franchise sales

5,510

6,183

4,994

3,737

2,331

1,184

2,648

26,587

Total

$

20,880

$

6,966

$

4,994

$

3,737

$

2,331

$

1,184

$

2,648

$

42,740

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, 2022

December 31, 2021

Cash and cash equivalents

$

118,495

$

126,270

Restricted cash

36,889

32,129

Total cash, cash equivalents and restricted cash

$

155,384

$

158,399

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, 

2022

2021

Technology − operating

$

4,224

$

3,600

Technology − capital

631

180

Marketing staff and administrative services

1,541

1,118

Total

$

6,396

$

4,898