Company: HOUS
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001398987-25-000108
Chunk: 20

Company: Anywhere Real Estate Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 20
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 when or as the related performance obligation is satisfied dependent on the type of service performed, and fees related to leads and related services, which are recognized at a point in time at the closing of a homesale transaction or at the completion of the related service.(c)Franchise fees at Franchise Group primarily include domestic royalties which are recognized at a point in time when the underlying franchisee revenue is earned (upon close of the homesale transaction).(d)Other revenue is comprised of brand marketing funds received from franchisees at Franchise Group and other miscellaneous revenues across all of the business segments.The following table shows the change in the Company's contract liabilities (deferred revenue) related to revenue contracts by reportable segment for the period: Beginning Balance at January 1, 2025Additions during the periodRecognized as Revenue during the periodEnding Balance at June 30, 2025Franchise Group:Deferred area development fees (a)$37 $1 $(2)$36 Deferred brand marketing fund fees (b)15 33 (36)12 Deferred outsourcing management fees (c)3 22 (20)5 Other deferred income related to revenue contracts5 15 (9)11 Total Franchise Group60 71 (67)64 Owned Brokerage Group:Advanced commissions related to development business (d)11 6 (5)12 Other deferred income related to revenue contracts1 3 (2)2 Total Owned Brokerage Group12 9 (7)14 Total$72 $80 $(74)$78 

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_______________(a)The Company collects initial area development fees ("ADF") for international territory transactions, which are recorded as deferred revenue when received and recognized into franchise revenue over the average 25 year life of the related franchise agreement as consideration for the right to access and benefit from Anywhere’s brands. In the event an ADF agreement is terminated prior to the end of its term, the unamortized deferred revenue balance will be recognized into revenue immediately upon termination.(b)Revenues recognized include intercompany marketing fees paid by Owned Brokerage Group.(c)The Company earns revenues from outsourcing management fees charged to clients that may cover several of the various relocation services according to the clients' specific needs. Outsourcing management fees are recorded as deferred revenue when billed (usually at the start of the relocation) and are recognized as revenue over the average time period required to complete the transferee's move, or a