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Revenue
 9 Months Ended
Sep. 30, 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 September 30, 2021 are as follows:
(in thousands)
Balance as of December 31, 2020$156,227 
Increases to the contract liability balance due to cash received76,936 
Revenue recognized in the period(58,264)
Balance as of September 30, 2021$174,899 
Remaining Performance Obligations
The aggregate amount of transaction price allocated to unsatisfied or partially unsatisfied performance obligations is $174.9 million as of September 30, 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 EndedThree Months Ended
September 30, 2021September 30, 2020
(in thousands)Over timePoint in timeTotalOver timePoint in timeTotal
Royalty fees$127,317 $— $127,317 $79,666 $— $79,666 
Initial franchise and relicensing fees6,149 — 6,149 6,071 — 6,071 
Procurement services12,285 725 13,010 9,620 495 10,115 
Marketing and reservation system145,216 11,655 156,871 93,327 13,814 107,141 
Owned hotels9,614 1,652 11,266 3,498 595 4,093 
Other8,645 — 8,645 3,317 — 3,317 
Total Topic 606 revenues$309,226 $14,032 323,258 $195,499 $14,904 210,403 
Non-Topic 606 revenues111 368 
Total revenues$323,369 $210,771 
Nine Months EndedNine Months Ended
September 30, 2021September 30, 2020
(in thousands)Over timePoint in timeTotalOver timePoint in timeTotal
Royalty fees$299,606 $— $299,606 $200,157 $— $200,157 
Initial franchise and relicensing fees18,904 — 18,904 20,031 — 20,031 
Procurement services34,526 1,767 36,293 33,069 1,540 34,609 
Marketing and reservation system346,211 38,169 384,380 247,092 50,111 297,203 
Owned hotels20,683 3,709 24,392 13,159 2,248 15,407 
Other20,753 — 20,753 12,167 — 12,167 
Total Topic 606 revenues$740,683 $43,645 784,328 $525,675 $53,899 579,574 
Non-Topic 606 revenues332 1,105 
Total revenues$784,660 $580,679 
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 $13.5 million and $6.4 million for the three months ended September 30, 2021 and 2020, respectively, and $30.5 million and $21.8 million for the nine months ended September 30, 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 $0.9 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $1.9 million and $1.2 million for the nine months ended September 30, 2021 and 2020, respectively.