Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 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):
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	Balance at				Revenue		Balance at
	January 1, 2022		New billings		recognized (a)		June 30, 2022
Franchise sales	$	26,043	$	3,884	$	(4,321)	$	25,606
Annual dues		15,020		18,557		(17,936)		15,641
Other		5,044		12,149		(13,440)		3,753
	$	46,107	$	34,590	$	(35,697)	$	45,000

(a) Revenue recognized related to the beginning balance for Franchise sales and Annual dues were $4.1 million and $11.3 million, respectively, for the six months ended June 30, 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		June 30,  2022
Capitalized contract costs for commissions	$	4,010	$	913	$	(1,026)	$	3,897

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	$	12,199	$	3,442	$	—	$	—	$	—	$	—	$	—	$	15,641
Franchise sales		3,683		6,385		5,205		3,952		2,556		1,277		2,548		25,606
Total	$	15,882	$	9,827	$	5,205	$	3,952	$	2,556	$	1,277	$	2,548	$	41,247

Schedule of disaggregated revenue

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
U.S. Company-Owned Regions (a)	$	42,733	$	37,613	$	81,887	$	70,159
U.S. Independent Regions (a)		1,877		3,730		3,578		7,018
Canada Company-Owned Regions (a)		11,434		4,800		21,909		8,354
Canada Independent Regions (a)		715		2,364		1,418		4,569
Global		3,193		2,854		6,285		5,495
Fee revenue (b)		59,952		51,361		115,077		95,595
Franchise sales and other revenue (c)		5,824		4,930		15,436		11,850
Total Real Estate		65,776		56,291		130,513		107,445
U.S. (a)		17,641		16,359		35,200		32,541
Canada (a)		4,988		1,424		10,001		3,161
Global		280		259		559		485
Total Marketing Funds		22,909		18,042		45,760		36,187
Mortgage (d)		3,115		2,410		6,143		4,733
Other (d)		372		503		760		1,176
Total	$	92,172	$	77,246	$	183,176	$	149,541

(a) In July 2021, the Company acquired the operating companies of the North America regions of 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 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,		December 31,
	2022		2021
Cash and cash equivalents	$	118,132	$	126,270
Restricted cash		35,677		32,129
Total cash, cash equivalents and restricted cash	$	153,809	$	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				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Technology − operating	$	3,519	$	3,233	$	7,743	$	6,833
Technology − capital		530		224		1,161		404
Marketing staff and administrative services		1,140		1,189		2,681		2,307
Total	$	5,189	$	4,646	$	11,585	$	9,544