Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Summary of Significant Accounting Policies

Schedule of deferred revenue for franchise sales and annual dues

The activity consists of the following (in thousands):

	Balance at				Revenue		Balance at
	January 1, 2022		New billings		recognized (a)		December 31, 2022
Franchise sales	$	26,043	$	7,775	$	(8,537)	$	25,281
Annual dues		15,020		34,820		(35,676)		14,164
Other		5,044		25,377		(23,795)		6,626
	$	46,107	$	67,972	$	(68,008)	$	46,071

(a) Revenue recognized related to the beginning balance for Franchise Sales and Annual Dues was $7.6 million and $14.3 million, respectfully, for the year ended December 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 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		December 31, 2022
Capitalized contract costs for commissions	$	4,010	$	1,976	$	(2,012)	$	3,974

Schedule of disaggregated revenue

In the following table, segment revenue is disaggregated by geographical area (in thousands):

	Year Ended
	December 31,
	2022		2021		2020
U.S. Company-Owned Regions (a)	$	157,492	$	154,981	$	126,406
U.S. Independent Regions (a)		7,086		11,392		13,345
Canada Company-Owned Regions (a)		42,289		27,234		12,659
Canada Independent Regions (a)		2,857		6,510		8,301
Global		12,163		11,501		9,255
Fee revenue (b)		221,887		211,618		169,966
Franchise sales and other revenue (c)		27,385		23,506		20,826
Total Real Estate		249,272		235,124		190,792
U.S. (a)		69,169		68,662		57,974
Canada (a)		19,993		12,722		5,634
Global		1,157		1,007		794
Total Marketing Funds		90,319		82,391		64,402
Mortgage (d)		12,388		10,051		6,610
Other (d)		1,407		2,135		4,197
Total	$	353,386	$	329,701	$	266,001

(a) On July 21, 2021, the Company acquired INTEGRA. Fee revenue from these regions was previously recognized in the U.S. and Canada Independent Regions and Marketing Funds fees were not charged by the Company. See Note 6, Acquisitions and Dispositions, for more 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):

	2023		2024		2025		2026		2027		Thereafter		Total
Annual dues	$	14,164	$	—	$	—	$	—	$	—	$	—	$	14,164
Franchise sales		6,992		5,842		4,614		3,226		1,764		2,843		25,281
Total	$	21,156	$	5,842	$	4,614	$	3,226	$	1,764	$	2,843	$	39,445

Schedule of reconciliation of cash, both unrestricted and restricted

The following table reconciles the amounts presented for cash, both unrestricted and restricted, in the Consolidated Balance Sheets to the amounts presented in the Consolidated Statements of Cash Flows (in thousands):

	December 31,
	2022		2021
Cash and cash equivalents	$	108,663	$	126,270
Restricted cash		29,465		32,129
Total cash, cash equivalents and restricted cash	$	138,128	$	158,399

Schedule of cost charges to intersegment

Costs charged from Real Estate to the Marketing Funds are as follows (in thousands):

	Year Ended
	December 31,
	2022		2021		2020
Technology − operating	$	14,436	$	13,396	$	12,245
Technology − capital (a)		918		954		1,017
Marketing staff and administrative services		5,598		5,782		4,527
Total	$	20,952	$	20,132	$	17,789

(a) During the third quarter of 2022, due to the Company’s restructuring, the cost of work in process assets that would no longer be placed in service totaling $0.5 million was refunded to the Marketing Funds.

Schedule of allowances against accounts and notes receivable

The activity in the Company’s allowances against accounts and notes receivable consists of the following (in thousands):

	Balance at beginning of period		Charges/(benefits) to expense for changes in Allowance for doubtful accounts (a)		Write-offs		Balance at end of period
Year Ended December 31, 2022	$	9,564	$	2,581	$	(3,034)	$	9,111
Year Ended December 31, 2021	$	11,724	$	(1,345)	$	(815)	$	9,564
Year Ended December 31, 2020	$	12,538	$	2,903	$	(3,717)	$	11,724

(a) Includes approximately $0.4 million, ($0.4) million and $0.6 million of (benefit)/expense attributable to the Marketing Funds for the years ended December 31, 2022, 2021 and 2020, respectively.