Company: HOUS
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001398987-25-000116
Chunk: 39

Company: Anywhere Real Estate Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 39
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 segment for the period: Beginning Balance at January 1, 2025Additions during the periodRecognized as Revenue during the periodEnding Balance at September 30, 2025Franchise Group:Deferred area development fees (a)$37 $1 $(3)$35 Deferred brand marketing fund fees (b)15 51 (55)11 Deferred outsourcing management fees (c)3 30 (30)3 Other deferred income related to revenue contracts5 19 (18)6 Total Franchise Group60 101 (106)55 Owned Brokerage Group:Advanced commissions related to development business (d)11 7 (8)10 Other deferred income related to revenue contracts1 2 (2)1 Total Owned Brokerage Group12 9 (10)11 Total$72 $110 $(116)$66 (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 

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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 phase of the move that the fee covers, which is typically 3 to 6 months depending on the move type.(d)New development closings generally have a development period of between 18 and 24 months from contracted date to closing.Allowance for Doubtful AccountsThe Company estimates the allowance necessary to provide for uncollectible accounts receivable. The estimate is based on historical experience, combined with a review of current conditions and forecasts of future losses, and includes specific accounts for which payment has become unlikely. The process by which the Company calculates the allowance begins in the individual business units where specific problem accounts are identified and reserved primarily based upon the age profile of the receivables and specific payment issues, combined with