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Revenue
 12 Months Ended
Dec. 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.
Significant changes in the contract liabilities balances during 2021 are as follows:
(in thousands)
Balance as of December 31, 2020$156,227 
Increases to the contract liability balance due to cash received102,213 
Revenue recognized in the period(83,015)
Balance as of December 31, 2021$175,425 
Remaining Performance Obligations
The aggregate transaction price allocated to unsatisfied or partially unsatisfied performance obligations is $175.4 million as of December 31, 2021. This amount represents fixed transaction price that will be recognized as revenue in future periods, which is primarily captured in the balance sheet within 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 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.
Capitalized Franchise Agreement Costs
Sales commissions earned by Company personnel upon execution of a franchise agreement (“franchise sales commissions”) meet the requirement to be capitalized as an incremental cost of obtaining a contract with a customer. Capitalized franchise sales commission are amortized on a straight-line basis over the estimated benefit period of the arrangement, unless the franchise agreement is terminated and the hotel exits the system whereby remaining capitalized amounts will be expensed in the period of termination. The estimated benefit period is the Company's estimate of the duration a hotel will remain in the Choice
system. Capitalized franchise sales commissions are $55.5 million and $54.3 million within Other assets as of December 31, 2021 and 2020, respectively. Amortization expense and impairment charges for the years ended December 31, 2021, 2020 and 2019 were $11.9 million, $9.7 million and $10.0 million, respectively, and are recorded within SG&A expenses.
The Company makes certain payments to customers as an incentive to enter into new franchise agreements (“franchise agreement acquisition cost”). These payments are recognized as an adjustment to transaction price and capitalized as an intangible asset. Franchise agreement acquisition cost intangibles are amortized on a straight-line basis over the estimated benefit period of the arrangement as an offset to royalty fees and marketing and reservation system fees. Impairments from adverse franchise agreement activity, including terminations and significant delinquencies in construction or invoice payments, for the years ended December 31, 2021, 2020 and 2019 were $11.1 million, $2.0 million and $1.0 million, respectively, and are recorded within SG&A expenses and marketing and reservation system expenses.
Disaggregation of Revenue
The following table presents our revenues by over time and point in time recognition:
 Year Ended December 31, 2021
(in thousands)Over timePoint in timeTotal
Royalty fees$397,218 $— $397,218 
Initial franchise and relicensing fees26,342 — 26,342 
Procurement services47,878 2,515 50,393 
Marketing and reservation system465,184 63,659 528,843 
Owned hotels31,747 5,642 37,389 
Other28,669 — 28,669 
Topic 606 revenues$997,038 $71,816 1,068,854 
Non-Topic 606 revenues444 
Total revenues$1,069,298 
 Year Ended December 31, 2020
(in thousands)Over timePoint in timeTotal
Royalty fees$263,308 $— $263,308 
Initial franchise and relicensing fees25,906 — 25,906 
Procurement services42,919 2,323 45,242 
Marketing and reservation system325,785 76,783 402,568 
Owned hotels16,824 2,912 19,736 
Other15,838 — 15,838 
Topic 606 revenues$690,580 $82,018 772,598 
Non-Topic 606 revenues1,474 
Total revenues$774,072 
 Year Ended December 31, 2019
(in thousands)Over timePoint in timeTotal
Royalty fees$388,151 $— $388,151 
Initial franchise and relicensing fees27,489 — 27,489 
Procurement services58,248 3,181 61,429 
Marketing and reservation system499,368 78,058 577,426 
Owned hotels17,345 2,821 20,166 
Other38,860 141 39,001 
Topic 606 revenues$1,029,461 $84,201 1,113,662 
Non-Topic 606 revenues1,158 
Total revenues$1,114,820 
Marketing and reservation system and Procurement services point in time revenues represent loyalty points redeemed by members for benefits (with both franchisees and third-party partners), net of the cost of redemptions. For the years ended
December 31, 2021, 2020 and 2019, these net revenues, inclusive of adjustments to estimated redemption rates, were $66.2 million, $79.1 million, and $81.2 million, respectively.
Non-Topic 606 revenues represent revenue from leasing and are presented in Owned hotels and Other revenues in the consolidated statements of income.
As presented in Note 20, the Corporate & Other segment amounts represent $45.7 million, $28.3 million, and $30.7 million for the years ended December 31, 2021, 2020 and 2019, 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 $2.9 million, $1.5 million, and $1.7 million for the years ended December 31, 2021, 2020 and 2019, respectively.