Revenue

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Contract Liabilities

Contract liabilities relate to (i) advance consideration received, such as initial franchise and relicensing fees paid when a franchise agreement is executed and system implementation fees paid at time of installation, for services considered to be part of the brand intellectual property performance obligation and (ii) amounts received when Choice Privileges points are issued, but for which revenue is not yet recognized since the related points have not been redeemed.

Deferred revenues from initial and relicensing fees and system implementation fees will typically be recognized over a five- to ten-year period, unless the franchise agreement is terminated and the hotel exits the franchise system whereby remaining deferred amounts will be recognized to revenue in the period of termination. Loyalty points are typically redeemed within three years of issuance.

Significant changes in the contract liabilities balances during the period December 31, 2020 to March 31, 2021 are as follows:

(in thousands)
Balance as of December 31, 2020	$	156,227
Increases to the contract liability balance due to cash received	15,125
Revenue recognized in the period	(18,826)
Balance as of March 31, 2021	$	152,526

Remaining Performance Obligations

The aggregate amount of transaction price allocated to unsatisfied or partially unsatisfied performance obligations is $152.5 million as of March 31, 2021. This amount represents fixed transaction price that will be recognized as revenue in future periods, which is captured in the consolidated balance sheet as current and non-current deferred revenue.

Based on practical expedient elections permitted by ASU 2014-09, Revenue From Contracts with Customers (Topic 606) and subsequent amendments ("Topic 606"), the Company does not disclose the value of unsatisfied performance obligations for (i) variable consideration subject to the sales or usage-based royalty constraint or comprising a component of a series (including franchise, partnership, qualified vendor, and software as a service ("SaaS") agreements), (ii) variable consideration for which we recognize revenue at the amount to which we have the right to invoice for services performed, or (iii) contracts with an expected original duration of one year or less.

Disaggregation of Revenue

	Three Months Ended						Three Months Ended
	March 31, 2021						March 31, 2020
(in thousands)	Over time		Point in time		Total		Over time		Point in time		Total
Royalty fees	$	66,047	$	—	$	66,047	$	70,339	$	—	$	70,339
Initial franchise and relicensing fees	5,427		—		5,427		7,284		—		7,284
Procurement services	10,739		452		11,191		13,288		509		13,797
Marketing and reservation system	79,052		12,469		91,521		99,329		11,056		110,385
Owned hotels	3,517		722		4,239		8,021		1,293		9,314
Other	4,407		—		4,407		6,687		—		6,687
Total Topic 606 revenues	$	169,189	$	13,643	182,832		$	204,948	$	12,858	217,806
Non-Topic 606 revenues					115						369
Total revenues					$	182,947					$	218,175

Non-Topic 606 revenues primarily represent revenue from leasing and are presented in Owned hotels and Other revenues in the consolidated statements of income.

As presented in Note 11, the Corporate & Other segment amounts represent $6.0 million and $10.9 million for the three months ended March 31, 2021 and 2020, respectively, and are included in the Over time column of Other revenues and the Owned Hotels and Non-Topic 606 revenues rows. The remaining revenues relate to the Hotel Franchising segment.

Royalty fees and Marketing and reservation system revenues are presented net of intersegment revenues of $0.3 million and $0.8 million for the three months ended March 31, 2021 and 2020, respectively