Cover Page and DEI Document and
Cover Page and DEI Document and Entity Information - $ / shares | 3 Months Ended | ||
Mar. 31, 2021 | May 03, 2021 | Dec. 31, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Document Period End Date | Mar. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-35674 | ||
Entity Registrant Name | REALOGY HOLDINGS CORP. | ||
Entity Tax Identification Number | 20-8050955 | ||
Entity Address, Address Line One | 175 Park Avenue | ||
Entity Address, City or Town | Madison | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07940 | ||
City Area Code | 973 | ||
Local Phone Number | 407-2000 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | RLGY | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 116,424,328 | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Entity Central Index Key | 0001398987 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | Q1 | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Realogy Group LLC [Member] | |||
Entity Information [Line Items] | |||
Entity File Number | 333-148153 | ||
Entity Registrant Name | REALOGY GROUP LLC | ||
Entity Tax Identification Number | 20-4381990 | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Central Index Key | 0001355001 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Revenues [Abstract] | |||
Net revenues | [1] | $ 1,547 | $ 1,168 |
Expenses | |||
Commission and other agent-related costs | 885 | 630 | |
Operating | 384 | 368 | |
Marketing | 58 | 59 | |
General and administrative | 90 | 88 | |
Restructuring costs, net | [2] | 5 | 12 |
Impairments | [3] | 1 | 477 |
Depreciation and amortization | 51 | 45 | |
Interest expense, net | 38 | 101 | |
Loss on the early extinguishment of debt | [4] | 17 | 0 |
Other income, net | (2) | 0 | |
Total expenses | 1,527 | 1,780 | |
Income (loss) before income taxes, equity in earnings and noncontrolling interests | 20 | (612) | |
Income tax expense (benefit) | 17 | (141) | |
Equity in earnings of unconsolidated entities | 31 | 9 | |
Net income (loss) | 34 | (462) | |
Less: Net income attributable to noncontrolling interests | (1) | 0 | |
Net income (loss) attributable to Realogy Holdings and Realogy Group | $ 33 | $ (462) | |
Earnings (loss) per share attributable to Realogy Holdings shareholders: | |||
Basic earnings (loss) per share | $ 0.28 | $ (4.03) | |
Diluted earnings (loss) per share | $ 0.28 | $ (4.03) | |
Weighted average common and common equivalent shares of Realogy Holdings outstanding: | |||
Basic | 115.9 | 114.7 | |
Diluted | 118.4 | 114.7 | |
Gross commission income | |||
Revenues [Abstract] | |||
Net revenues | [5] | $ 1,154 | $ 850 |
Service revenue | |||
Revenues [Abstract] | |||
Net revenues | [6] | 249 | 202 |
Franchise fees | |||
Revenues [Abstract] | |||
Net revenues | [7] | 105 | 71 |
Other | |||
Revenues [Abstract] | |||
Net revenues | [8] | $ 39 | $ 45 |
[1] | Transactions between segments are eliminated in consolidation. Revenues for the Realogy Franchise Group include intercompany royalties and marketing fees paid by Realogy Brokerage Group of $79 million and $58 million for the three months ended March 31, 2021 and 2020, respectively. Such amounts are eliminated through the Corporate and Other line. | ||
[2] | The three months ended March 31, 2021 includes restructuring charges of $2 million at Realogy Franchise Group, $2 million at Realogy Brokerage Group and $1 million at Corporate and Other.The three months ended March 31, 2020 includes restructuring charges of $2 million at Realogy Franchise Group, $9 million at Realogy Brokerage Group and $1 million at Realogy Title Group. | ||
[3] | Impairments for the three months ended March 31, 2021 relate to lease asset impairments. Non-cash impairments for the three months ended March 31, 2020 include: • a goodwill impairment charge of $413 million related to Realogy Brokerage Group; • an impairment charge of $30 million related to Realogy Franchise Group's trademarks; • $30 million of impairment charges during the three months ended March 31, 2020 (while Cartus Relocation Services was held for sale) to reduce the net assets to the estimated proceeds; and • other asset impairments of $4 million primarily related to lease asset impairments. | ||
[4] | Loss on the early extinguishment of debt is recorded in Corporate and Other. | ||
[5] | Gross commission income at Realogy Brokerage Group is recognized at a point in time at the closing of a homesale transaction | ||
[6] | Service revenue primarily consists of title and escrow fees at Realogy Title Group and are recognized at a point in time at the closing of a homesale transaction. Service revenue at Realogy Franchise Group includes relocation fees, which are recognized as revenue when or as the related performance obligation is satisfied dependent on the type of service performed, and fees related to leads and related services, which are recognized at a point in time at the closing of a homesale transaction or at the completion of the related service. | ||
[7] | Franchise fees at Realogy Franchise Group primarily include domestic royalties which are recognized at a point in time when the underlying franchisee revenue is earned (upon close of the homesale transaction). | ||
[8] | Other revenue is comprised of brand marketing funds received from franchisees at Realogy Franchise Group and other miscellaneous revenues across all of the business segments. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 34 | $ (462) |
Currency translation adjustment | (1) | (2) |
Defined benefit pension plan—amortization of actuarial loss to periodic pension cost | 1 | 1 |
Other comprehensive loss, before tax | 0 | (1) |
Income tax expense (benefit) related to items of other comprehensive income amounts | 0 | 0 |
Other comprehensive loss, net of tax | 0 | (1) |
Comprehensive income (loss) | 34 | (463) |
Less: comprehensive income attributable to noncontrolling interests | (1) | 0 |
Comprehensive income (loss) attributable to Realogy Holdings and Realogy Group | $ 33 | $ (463) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 404 | $ 520 |
Restricted cash | 5 | 3 |
Trade receivables (net of allowance for doubtful accounts of $12 and $13) | 130 | 128 |
Relocation receivables | 144 | 139 |
Other current assets | 186 | 154 |
Total current assets | 869 | 944 |
Property and equipment, net | 308 | 317 |
Operating lease assets, net | 460 | 450 |
Goodwill | 2,909 | 2,910 |
Trademarks | 685 | 685 |
Franchise agreements, net | 1,071 | 1,088 |
Other intangibles, net | 183 | 188 |
Other non-current assets | 409 | 352 |
Total assets | 6,894 | 6,934 |
Current liabilities: | ||
Accounts payable | 103 | 128 |
Securitization obligations | 100 | 106 |
Current portion of long-term debt | 17 | 62 |
Current portion of operating lease liabilities | 126 | 129 |
Accrued expenses and other current liabilities | 523 | 600 |
Total current liabilities | 869 | 1,025 |
Long-term debt | 3,190 | 3,145 |
Long-term operating lease liabilities | 439 | 430 |
Deferred income taxes | 292 | 276 |
Other non-current liabilities | 307 | 291 |
Total liabilities | 5,097 | 5,167 |
Equity: | ||
Realogy Holdings preferred stock: $0.01 par value; 50,000,000 shares authorized, none issued and outstanding at March 31, 2021 and December 31, 2020 | $ 0 | $ 0 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Realogy Holdings common stock: $0.01 par value; 400,000,000 shares authorized, 116,411,025 shares issued and outstanding at March 31, 2021 and 115,457,067 shares issued and outstanding at December 31, 2020 | $ 1 | $ 1 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares, Outstanding | 116,411,025 | 115,457,067 |
Additional paid-in capital | $ 4,874 | $ 4,876 |
Accumulated deficit | (3,022) | (3,055) |
Accumulated other comprehensive loss | (59) | (59) |
Total stockholders' equity | 1,794 | 1,763 |
Noncontrolling interests | 3 | 4 |
Total equity | 1,797 | 1,767 |
Total liabilities and equity | $ 6,894 | $ 6,934 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Operating Activities | |||
Net income (loss) | $ 34 | $ (462) | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation and amortization | 51 | 45 | |
Deferred income taxes | 15 | (137) | |
Impairments | [1] | 1 | 477 |
Amortization of deferred financing costs and debt discount (premium) | 3 | 2 | |
Loss on the early extinguishment of debt | 17 | 0 | |
Equity in earnings of unconsolidated entities | 31 | 9 | |
Stock-based compensation | 6 | 6 | |
Mark-to-market adjustments on derivatives | (13) | 51 | |
Other adjustments to net income (loss) | (2) | 0 | |
Net change in assets and liabilities, excluding the impact of acquisitions and dispositions: | |||
Trade receivables | (3) | (15) | |
Relocation receivables | (4) | 14 | |
Other assets | (14) | (26) | |
Accounts payable, accrued expenses and other liabilities | (117) | (23) | |
Dividends received from unconsolidated entities | 31 | 1 | |
Other, net | (11) | (6) | |
Net cash used in operating activities | (37) | (82) | |
Investing Activities | |||
Property and equipment additions | (23) | (29) | |
Proceeds from the sale of assets | 2 | 0 | |
Investment in unconsolidated entities | (6) | (1) | |
Other, net | (5) | (9) | |
Net cash used in investing activities | (32) | (39) | |
Financing Activities | |||
Net change in Revolving Credit Facility | 0 | 565 | |
Payments for refinancing of Term Loan A Facility and Term Loan B Facility | (905) | 0 | |
Proceeds from issuance of Senior Notes | 905 | 0 | |
Amortization payments on term loan facilities | (3) | (7) | |
Net change in securitization obligations | (7) | (43) | |
Debt issuance costs | (8) | 0 | |
Cash paid for fees associated with early extinguishment of debt | (11) | 0 | |
Taxes paid related to net share settlement for stock-based compensation | (8) | (4) | |
Other, net | (8) | (11) | |
Net cash (used in) provided by financing activities | (45) | 500 | |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 0 | (1) | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (114) | 378 | |
Cash, cash equivalents and restricted cash, beginning of period | 523 | 266 | |
Cash, cash equivalents and restricted cash, end of period | 409 | 644 | |
Supplemental Disclosure of Cash Flow Information | |||
Interest payments (including securitization interest of $1 and $2 respectively) | 14 | 20 | |
Income tax payments (refunds), net | 2 | (1) | |
Payments to Acquire Retained Interest in Securitized Receivables | $ 1 | $ 2 | |
[1] | Impairments for the three months ended March 31, 2021 relate to lease asset impairments. Non-cash impairments for the three months ended March 31, 2020 include: • a goodwill impairment charge of $413 million related to Realogy Brokerage Group; • an impairment charge of $30 million related to Realogy Franchise Group's trademarks; • $30 million of impairment charges during the three months ended March 31, 2020 (while Cartus Relocation Services was held for sale) to reduce the net assets to the estimated proceeds; and • other asset impairments of $4 million primarily related to lease asset impairments. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | EQUITY Condensed Consolidated Statement of Changes in Equity for Realogy Holdings Three Months Ended March 31, 2021 Common Stock Additional Accumulated Accumulated Non- Total Shares Amount Balance at December 31, 2020 115.5 $ 1 $ 4,876 $ (3,055) $ (59) $ 4 $ 1,767 Net income — — — 33 — 1 34 Stock-based compensation — — 6 — — — 6 Issuance of shares for vesting of equity awards 1.4 — — — — — — Shares withheld for taxes on equity awards (0.5) — (8) — — — (8) Dividends — — — — — (2) (2) Balance at March 31, 2021 116.4 $ 1 $ 4,874 $ (3,022) $ (59) $ 3 $ 1,797 Three Months Ended March 31, 2020 Common Stock Additional Accumulated Accumulated Non- Total Shares Amount Balance at December 31, 2019 114.4 $ 1 $ 4,842 $ (2,695) $ (56) $ 4 $ 2,096 Net loss — — — (462) — — (462) Other comprehensive loss — — — — (1) — (1) Stock-based compensation — — 6 — — — 6 Issuance of shares for vesting of equity awards 1.4 — — — — — — Shares withheld for taxes on equity awards (0.5) — (4) — — — (4) Dividends — — — — — (1) (1) Balance at March 31, 2020 115.3 $ 1 $ 4,844 $ (3,157) $ (57) $ 3 $ 1,634 Condensed Consolidated Statement of Changes in Equity for Realogy Group The Company has not included a statement of changes in equity for Realogy Group as the operating results of Group are consistent with the operating results of Realogy Holdings as all revenue and expenses of Realogy Group flow up to Realogy Holdings and there are no incremental activities at the Realogy Holdings level. The only difference between Realogy Group and Realogy Holdings is that the $1 million in par value of common stock in Realogy Holdings' equity is included in additional paid-in capital in Realogy Group's equity. Stock-Based Compensation During the first quarter of 2021, the Company granted restricted stock units related to 0.9 million shares with a weighted average grant date fair value of $14.10 and performance stock units related to 0.6 million shares with a weighted average grant date fair value of $11.55. The Company granted all time-based equity awards in the form of restricted stock units which are subject to ratable vesting over a three-year period. |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | BASIS OF PRESENTATION Realogy Holdings Corp. ("Realogy Holdings", "Realogy" or the "Company") is a holding company for its consolidated subsidiaries including Realogy Intermediate Holdings LLC ("Realogy Intermediate") and Realogy Group LLC ("Realogy Group") and its consolidated subsidiaries. Realogy, through its subsidiaries, is a global provider of residential real estate services. Neither Realogy Holdings, the indirect parent of Realogy Group, nor Realogy Intermediate, the direct parent company of Realogy Group, conducts any operations other than with respect to its respective direct or indirect ownership of Realogy Group. As a result, the consolidated financial positions, results of operations, comprehensive income (loss) and cash flows of Realogy Holdings, Realogy Intermediate and Realogy Group are the same. The accompanying Condensed Consolidated Financial Statements include the financial statements of Realogy Holdings and Realogy Group. Realogy Holdings' only asset is its investment in the common stock of Realogy Intermediate, and Realogy Intermediate's only asset is its investment in Realogy Group. Realogy Holdings' only obligations are its guarantees of certain borrowings and certain franchise obligations of Realogy Group. All expenses incurred by Realogy Holdings and Realogy Intermediate are for the benefit of Realogy Group and have been reflected in Realogy Group's Condensed Consolidated Financial Statements. The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America and with Article 10 of Regulation S-X. Interim results may not be indicative of full year performance because of seasonal and short-term variations. The Company has eliminated all material intercompany transactions and balances between entities consolidated in these financial statements. In presenting the Condensed Consolidated Financial Statements, management makes estimates and assumptions that affect the amounts reported and the related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ materially from those estimates. In management's opinion, the accompanying unaudited Condensed Consolidated Financial Statements reflect all normal and recurring adjustments necessary for a fair statement of Realogy Holdings and Realogy Group's financial position as of March 31, 2021 and the results of operations and comprehensive income (loss) for the three months ended March 31, 2021 and 2020 and cash flows for the three months ended March 31, 2021 and 2020. The Consolidated Balance Sheet at December 31, 2020 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2020. Fair Value Measurements The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level Input: Input Definitions: Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The availability of observable inputs can vary from asset to asset and is affected by a wide variety of factors, including, for example, the type of asset, whether the asset is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level III. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value of financial instruments is generally determined by reference to quoted market values. In cases where quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques, as appropriate. The fair value of interest rate swaps is determined based upon a discounted cash flow approach. The Company measures financial instruments at fair value on a recurring basis and recognizes transfers within the fair value hierarchy at the end of the fiscal quarter in which the change in circumstances that caused the transfer occurred. The following table summarizes fair value measurements by level at March 31, 2021 for assets and liabilities measured at fair value on a recurring basis: Level I Level II Level III Total Deferred compensation plan assets (included in other non-current assets) $ 1 $ — $ — $ 1 Interest rate swaps (included in other non-current liabilities) — 63 — 63 Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) — — 3 3 The following table summarizes fair value measurements by level at December 31, 2020 for assets and liabilities measured at fair value on a recurring basis: Level I Level II Level III Total Deferred compensation plan assets (included in other non-current assets) $ 1 $ — $ — $ 1 Interest rate swaps (included in other non-current liabilities) — 81 — 81 Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) — — 3 3 The fair value of the Company’s contingent consideration for acquisitions is measured using a probability weighted-average discount rate to estimate future cash flows based upon the likelihood of achieving future operating results for individual acquisitions. These assumptions are deemed to be unobservable inputs and as such the Company’s contingent consideration is classified within Level III of the valuation hierarchy. The Company reassesses the fair value of the contingent consideration liabilities on a quarterly basis. The following table presents changes in Level III financial liabilities measured at fair value on a recurring basis: Level III Fair value of contingent consideration at December 31, 2020 $ 3 Additions: contingent consideration related to acquisitions completed during the period 1 Reductions: payments of contingent consideration (1) Changes in fair value (reflected in general and administrative expenses) — Fair value of contingent consideration at March 31, 2021 $ 3 The following table summarizes the principal amount of the Company’s indebtedness compared to the estimated fair value, primarily determined by quoted market values, at: March 31, 2021 December 31, 2020 Debt Principal Amount Estimated Principal Amount Estimated Senior Secured Credit Facility: Non-extended Revolving Credit Commitment $ — $ — $ — $ — Extended Revolving Credit Commitment — — — — Term Loan B 390 385 1,048 1,032 Term Loan A Facility: Non-extended Term Loan A 197 194 684 671 Extended Term Loan A 237 234 — — 7.625% Senior Secured Second Lien Notes 550 598 550 595 4.875% Senior Notes 407 419 407 415 9.375% Senior Notes 550 609 550 609 5.75% Senior Notes 900 889 — — _______________ (a) The fair value of the Company's indebtedness is categorized as Level II. Equity Method Investments At March 31, 2021 and December 31, 2020, the Company had various equity method investments which are recorded within other non-current assets on the accompanying Condensed Consolidated Balance Sheets. The Company's investment in Guaranteed Rate Affinity, LLC ("Guaranteed Rate Affinity") at Realogy Title Group had an investment balance of $90 million at both March 31, 2021 and December 31, 2020. The Company recorded equity earnings of $30 million and $9 million related to its investment in Guaranteed Rate Affinity for the first quarter of 2021 and 2020, respectively. The Company received $30 million in cash dividends from Guaranteed Rate Affinity during the three months ended March 31, 2021 and no cash dividends during the three months ended March 31, 2020. The Company's other equity method investments had investment balances totaling $12 million and $10 million at March 31, 2021 and December 31, 2020, respectively. The Company recorded $1 million equity earnings from the operations of these equity method investments in the first quarter of 2021 and recorded no equity earnings or losses for the first quarter of 2020. The Company received $1 million in cash dividends from these equity method investments during both the three months ended March 31, 2021 and 2020. Income Taxes The Company's provision for income taxes in interim periods is computed by applying its estimated annual effective tax rate against the income before income taxes for the period. In addition, non-recurring or discrete items are recorded in the period in which they occur. The provision for income taxes was an expense of $17 million and a benefit of $141 million for the three months ended March 31, 2021 and 2020, respectively. Derivative Instruments The Company records derivatives and hedging activities on the balance sheet at their respective fair values. The Company enters into interest rate swaps to manage its exposure to changes in interest rates associated with its variable rate borrowings. As of March 31, 2021, the Company had interest rate swaps with an aggregate notional value of $1,000 million to offset the variability in cash flows resulting from the term loan facilities as follows: Notional Value (in millions) Commencement Date Expiration Date $450 November 2017 November 2022 $400 August 2020 August 2025 $150 November 2022 November 2027 The swaps help to protect our outstanding variable rate borrowings from future interest rate volatility. The Company has not elected to utilize hedge accounting for these interest rate swaps; therefore, any change in fair value is recorded in the Condensed Consolidated Statements of Operations. The fair value of derivative instruments was as follows: Not Designated as Hedging Instruments Balance Sheet Location March 31, 2021 December 31, 2020 Interest rate swap contracts Other non-current liabilities 63 81 The effect of derivative instruments on earnings was as follows: Derivative Instruments Not Designated as Hedging Instruments Location of Loss or (Gain) Recognized for Derivative Instruments Loss or (Gain) Recognized on Derivatives Three Months Ended March 31, 2021 2020 Interest rate swap contracts Interest expense $ (13) $ 51 Restricted Cash Restricted cash primarily relates to amounts specifically designated as collateral for the repayment of outstanding borrowings under the Company’s securitization facilities. Such amounts approximated $5 million at March 31, 2021 and $3 million at December 31, 2020. Revenue Revenue is recognized upon the transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services in accordance with the revenue standard. The Company's revenue is disaggregated by major revenue categories on our Condensed Consolidated Statements of Operations and further disaggregated by business segment as follows: Three Months Ended March 31, Realogy Franchise Group Realogy Brokerage Group Realogy Title Corporate and Other Total 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Gross commission income (a) $ — $ — $ 1,154 $ 850 $ — $ — $ — $ — $ 1,154 $ 850 Service revenue (b) 47 64 7 5 195 133 — — 249 202 Franchise fees (c) 181 127 — — — — (76) (56) 105 71 Other (d) 26 29 10 14 6 4 (3) (2) 39 45 Net revenues $ 254 $ 220 $ 1,171 $ 869 $ 201 $ 137 $ (79) $ (58) $ 1,547 $ 1,168 ______________ (a) Gross commission income at Realogy Brokerage Group is recognized at a point in time at the closing of a homesale transaction. (b) Service revenue primarily consists of title and escrow fees at Realogy Title Group and are recognized at a point in time at the closing of a homesale transaction. Service revenue at Realogy Franchise Group includes relocation fees, which are recognized as revenue 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 Realogy 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 Realogy 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, 2021 Additions during the period Recognized as Revenue during the period Ending Balance at March 31, 2021 Realogy Franchise Group: Deferred area development fees (a) $ 43 $ 1 $ (3) $ 41 Deferred brand marketing fund fees (b) 14 24 (23) 15 Deferred outsourcing management fees (c) 3 8 (8) 3 Other deferred income related to revenue contracts 10 9 (8) 11 Total Realogy Franchise Group 70 42 (42) 70 Realogy Brokerage Group: Advanced commissions related to development business (d) 9 — — 9 Other deferred income related to revenue contracts 3 2 (1) 4 Total Realogy Brokerage Group 12 2 (1) 13 Total $ 82 $ 44 $ (43) $ 83 _______________ (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 Realogy’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 Realogy Brokerage Group. (c) The Company earns revenues from outsourcing management fees charged to clients that may cover several of the relocation services listed above, 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 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 Accounts The 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 reasonable and supportable forecasts of future losses. Supplemental Cash Flow Information Significant non-cash transactions included finance lease additions of $1 million and $4 million during the three months ended March 31, 2021 and 2020, respectively, which resulted in non-cash additions to property and equipment, net and other non-current liabilities. Leases Other than the Company's facility closures as described in Note 5, "Restructuring Costs," the Company's lease obligations as of March 31, 2021 have not changed materially from the amounts reported in our 2020 Form 10-K. Recently Adopted Accounting Pronouncements The Company adopted the new standard on Simplifying the Accounting for Income Taxes effective January 1, 2021. The new standard clarifies and simplifies aspects of the accounting for income taxes to help promote consistent application of GAAP by eliminating certain exceptions to the general principles of ASC Topic 740, Income Taxes. The adoption of this guidance did not have an impact to the Company’s Consolidated Financial Statements upon adoption on January 1, 2021. Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). Recently issued standards were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. The FASB issued its new standard on Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity which simplifies the accounting for instruments with characteristics of liabilities and equity, including convertible debt. The new standard reduces the number of accounting models for convertible debt instruments and convertible preferred stock resulting in fewer embedded conversion features being separately recognized from the host contract and the interest rate of more convertible debt instruments being closer to the coupon interest rate, as compared with current guidance. The new standard also amends the derivative guidance for the “own stock” scope exception, which exempts qualifying instruments from being accounted for as derivatives if certain criteria are met. In addition, the standard changes the diluted earnings per share calculation for instruments that may be settled in cash or shares and for convertible instruments. The new standard is effective for reporting periods beginning on or after December 15, 2021 with early adoption permitted as of January 1, 2021. The new standard requires adoption using either a full or modified retrospective approach and is not expected to have an impact on the Company's financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill by reporting unit and changes in the carrying amount are as follows: Realogy Franchise Group Realogy Brokerage Group Realogy Total Balance at December 31, 2020 $ 2,509 $ 245 $ 156 $ 2,910 Goodwill acquired (a) — — 2 2 Goodwill reduction for sale of a business (b) (3) — — (3) Balance at March 31, 2021 $ 2,506 $ 245 $ 158 $ 2,909 Accumulated impairment losses (c) $ 1,447 $ 808 $ 324 $ 2,579 _______________ (a) Goodwill acquired during the three months ended March 31, 2021 relates to the acquisition of one title and settlement operation. (b) Goodwill reduction during the three months ended March 31, 2021 relates to the sale of a relocation related business. (c) Includes impairment charges which reduced goodwill by $540 million during 2020, $253 million during 2019, $1,279 million during 2008 and $507 million during 2007. Intangible Assets Intangible assets are as follows: As of March 31, 2021 As of December 31, 2020 Gross Accumulated Net Gross Accumulated Net Amortizable—Franchise agreements (a) $ 2,010 $ 939 $ 1,071 $ 2,010 $ 922 $ 1,088 Indefinite life—Trademarks (b) $ 685 $ 685 $ 685 $ 685 Other Intangibles Amortizable—License agreements (c) $ 45 $ 13 $ 32 $ 45 $ 13 $ 32 Amortizable—Customer relationships (d) 510 382 128 509 376 133 Indefinite life—Title plant shares (e) 20 20 20 20 Amortizable—Other (f) 14 11 3 14 11 3 Total Other Intangibles $ 589 $ 406 $ 183 $ 588 $ 400 $ 188 _______________ (a) Generally amortized over a period of 30 years. (b) Primarily related to real estate franchise brands which are expected to generate future cash flows for an indefinite period of time. (c) Relates to the Sotheby’s International Realty ® and Better Homes and Gardens ® Real Estate agreements which are being amortized over 50 years (the contractual term of the license agreements). (d) Relates to the customer relationships at Realogy Franchise Group, Realogy Title Group and Realogy Brokerage Group. These relationships are being amortized over a period of 2 to 20 years. (e) Ownership in a title plant is required to transact title insurance in certain states. The Company expects to generate future cash flows for an indefinite period of time. (f) Consists of covenants not to compete which are amortized over their contract lives and other intangibles which are generally amortized over periods ranging from 5 to 10 years. Intangible asset amortization expense is as follows: Three Months Ended March 31, 2021 2020 Franchise agreements $ 17 $ 17 Customer relationships 6 1 Other — 1 Total $ 23 $ 19 Based on the Company’s amortizable intangible assets as of March 31, 2021, the Company expects related amortization expense for the remainder of 2021, the four succeeding years and thereafter to be approximately $68 million, $90 million, $89 million, $89 million, $89 million and $809 million, respectively. |
Accrued Expenses And Other Curr
Accrued Expenses And Other Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses And Other Current Liabilities | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of: March 31, 2021 December 31, 2020 Accrued payroll and related employee costs $ 127 $ 239 Advances from clients 58 65 Accrued volume incentives 39 46 Accrued commissions 47 48 Restructuring accruals 14 16 Deferred income 50 46 Accrued interest 58 18 Current portion of finance lease liabilities 12 13 Due to former parent 19 19 Other 99 90 Total accrued expenses and other current liabilities $ 523 $ 600 |
Short And Long Term-Debt
Short And Long Term-Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short And Long-Term Debt | SHORT AND LONG-TERM DEBT Total indebtedness is as follows: March 31, 2021 December 31, 2020 Senior Secured Credit Facility: Non-extended Revolving Credit Commitment $ — $ — Extended Revolving Credit Commitment — — Term Loan B 386 1,036 Term Loan A Facility: Non-extended Term Loan A 196 681 Extended Term Loan A 236 — 7.625% Senior Secured Second Lien Notes 541 540 4.875% Senior Notes 406 406 9.375% Senior Notes 544 544 5.75% Senior Notes 898 — Total Short-Term & Long-Term Debt $ 3,207 $ 3,207 Securitization Obligations: Apple Ridge Funding LLC $ 97 $ 102 Cartus Financing Limited 3 4 Total Securitization Obligations $ 100 $ 106 Indebtedness Table As of March 31, 2021, the Company’s borrowing arrangements were as follows: Interest Expiration Principal Amount Unamortized Discount (Premium) and Debt Issuance Costs Net Amount Senior Secured Credit Facility (1): Non-extended Revolving Credit Commitment (2) February 2023 $ — $ * $ — Extended Revolving Credit Commitment (2) February 2025 (3) — * — Term Loan B (4) February 2025 390 4 386 Term Loan A Facility (5): Non-extended Term Loan A (6) February 2023 197 1 196 Extended Term Loan A (7) February 2025 (3) 237 1 236 Senior Secured Second Lien Notes 7.625% June 2025 550 9 541 Senior Notes 4.875% June 2023 407 1 406 Senior Notes 9.375% April 2027 550 6 544 Senior Notes 5.75% January 2029 900 2 898 Total Short-Term & Long-Term Debt $ 3,231 $ 24 $ 3,207 Securitization obligations: (8) Apple Ridge Funding LLC (9) June 2021 $ 97 $ * $ 97 Cartus Financing Limited (10) August 2021 3 * 3 Total Securitization Obligations $ 100 $ — $ 100 _______________ * The debt issuance costs related to our Revolving Credit Facility and securitization obligations are classified as a deferred financing asset within other assets. (1) The available capacity under the Non-extended Revolving Credit Commitment is $477 million, while the available capacity under the Extended Revolving Credit Commitment is $948 million. As of March 31, 2021, there were no outstanding borrowings under either the Non-extended Revolving Credit Commitment or Extended Revolving Credit Commitment and $43 million of outstanding undrawn letters of credit. The Non-extended Revolving Credit Commitment expires in February 2023 and, subject to earlier spring maturity described in footnote (3), the Extended Revolving Credit Commitment expires in February 2025, but in each instance, amounts outstanding would be classified on the balance sheet as current due to the revolving nature and terms and conditions of the facilities. On May 3, 2021, the Company had no outstanding borrowings under the Revolving Credit Facility and $43 million of outstanding undrawn letters of credit. (2) Interest rates with respect to revolving loans under the Senior Secured Credit Facility at March 31, 2021 were based on, at the Company's option, (a) adjusted London Interbank Offering Rate ("LIBOR") plus an additional margin or (b) JP Morgan Chase Bank, N.A.'s prime rate ("ABR") plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. (3) The maturity date of each of the Extended Revolving Credit Commitment and Extended Term Loan A may spring forward to a date prior to February 2025 as follows: (i) if on or before March 2, 2023, the 4.875% Senior Notes have not been extended, refinanced or replaced to have a maturity date after May 10, 2025 (or are not otherwise discharged, defeased or repaid by March 2, 2023), the maturity date of the Extended Revolving Credit Commitment and Extended Term Loan A Facility will be March 2, 2023; and (ii) if on or before November 9, 2024, the Term Loan B Facility under the Senior Secured Credit Agreement is not extended, refinanced or replaced to have a maturity date after May 10, 2025 (or otherwise repaid prior to November 9, 2024), the maturity date of the Extended Revolving Credit Commitment and Extended Term Loan A Facility will be November 9, 2024. (4) In January and February 2021, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $655 million of outstanding borrowings under the Term Loan B Facility. The Term Loan B Facility provides for quarterly amortization payments totaling 1% per annum of the $1,080 million original principal amount. The interest rate with respect to term loans under the Term Loan B Facility is based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) ABR plus 1.25% (with an ABR floor of 1.75%). On April 28, 2021, the Company used cash on hand to pay down $150 million of the Term Loan B Facility. (5) In January 2021, prior to the effective date of the 2021 Amendments, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $250 million of outstanding borrowings under the Term Loan A Facility. The interest rates with respect to each of the Non-extended Term Loan A and Extended Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. (6) The Company is not required to make amortization payments on the Non-extended Term Loan A. The balance of the Non-Extended Term Loan A is due at maturity on February 8, 2023. (7) The Extended Term Loan A has quarterly amortization payments, commencing with the quarter ending June 30, 2021, equal to a percentage per quarter of the $237 million principal amount of the Extended Term Loan A outstanding on January 27, 2021 (the effective date of the 2021 Amendments), as follows: 0.625% per quarter from June 30, 2021 to March 31, 2022; 1.25% per quarter from June 30, 2022 to March 31, 2023; 1.875% per quarter from June 30, 2023 to March 31, 2024; and 2.50% per quarter for periods ending on or after June 30, 2024, with the balance of the Extended Term Loan A due at maturity on February 8, 2025. (8) Available capacity is subject to maintaining sufficient relocation related assets to collateralize these securitization obligations. (9) As of March 31, 2021, the Company had $200 million of borrowing capacity under the Apple Ridge Funding LLC securitization program leaving $103 million of available capacity. (10) Consists of a £10 million revolving loan facility and a £5 million working capital facility. As of March 31, 2021, the Company had $21 million of borrowing capacity under the Cartus Financing Limited securitization program leaving $18 million of available capacity. Maturities Table As of March 31, 2021, the combined aggregate amount of maturities for long-term borrowings for the remainder of 2021 and each of the next four years is as follows: Year Amount Remaining 2021 (a) $ 12 2022 21 2023 631 2024 33 2025 1,084 _______________ (a) Remaining 2021 includes amortization payments totaling $4 million and $8 million for the Extended Term Loan A and Term Loan B Facility, respectively. The current portion of long-term debt of $17 million shown on the Condensed Consolidated Balance Sheets consists of four quarters of amortization payments totaling $6 million and $11 million for the Extended Term Loan A and Term Loan B Facility, respectively. Senior Secured Credit Agreement and Term Loan A Agreement The Company's Amended and Restated Credit Agreement dated as of March 5, 2013 (as amended, amended and restated, modified or supplemented from time to time, the "Senior Secured Credit Agreement") governs its senior secured revolving credit facility (the "Revolving Credit Facility") and term loan B facility (the "Term Loan B Facility", and collectively with the Revolving Credit Facility, the "Senior Secured Credit Facility") and the Company's Term Loan A Agreement dated as of October 23, 2015 (as amended, amended and restated, modified or supplemented from time to time, the "Term Loan A Agreement") governs its senior secured term loan A credit facility (the "Term Loan A Facility"). In January 2021, the Company repaid $250 million of outstanding borrowings under the Term Loan A Facility and $655 million of outstanding borrowings under the Term Loan B Facility using proceeds from its January and February 2021 issuances of $900 million 5.75% Senior Notes due 2029. Furthermore, on January 27, 2021, Realogy Group entered into amendments to the Senior Secured Credit Agreement, referred to collectively herein as the "2021 Amendments", which among other things: • extend the maturity for approximately $237 million of the approximately $434 million outstanding loans under the Term Loan A Facility (the "Extended Term Loan A") after giving effect to the application of the proceeds of the 5.75% Senior Notes offering, from February 2023 to February 2025, subject to the following: ◦ if on or before March 2, 2023, the 4.875% Senior Notes have not been extended, refinanced or replaced to have a maturity date after May 10, 2025 (or are not otherwise discharged, defeased or repaid by March 2, 2023), the maturity date of the Extended Term Loan A will be March 2, 2023; and ◦ if on or before November 9, 2024, the Term Loan B Facility under the Senior Secured Credit Agreement is not extended, refinanced or replaced to have a maturity date after May 10, 2025 (or otherwise repaid prior to November 9, 2024), the maturity date of the Extended Term Loan A will be November 9, 2024; • extend the maturity of approximately $948 million of the $1,425 million in commitments under the Revolving Credit Facility (the "Extended Revolving Credit Commitment") from February 2023 to February 2025, subject to the earlier springing maturity dates applicable to the Extended Term Loan A described above; and • make certain modifications to the Senior Secured Credit Agreement and Term Loan A Agreement, including amendments that reduced the maximum permitted senior secured leverage ratio (the financial covenant under such agreements) for the applicable trailing twelve-month period to below the levels that had been permitted under the amendments to the Senior Secured Credit Agreement and Term Loan A Agreement that Realogy Group entered into on July 24, 2020 (referred to collectively herein as the "2020 Amendments"), as follows: Fiscal Quarter Ending Senior Secured Leverage Ratio December 31, 2020 to June 30, 2021 5.25 to 1.00 September 30, 2021 to March 31, 2022 5.00 to 1.00 June 30, 2022 and thereafter 4.75 to 1.00 Certain other covenants in the Senior Secured Credit Agreement and Term Loan A Agreement that were tightened under the 2020 Amendments will remain in place under the 2021 Amendments until the Company issues its financial results for the third quarter of 2021 and concurrently delivers an officer’s certificate to its lenders showing compliance with the senior secured leverage ratio set forth in the above table, subject to earlier termination, which we refer to as the covenant period. If Realogy Group’s senior secured leverage ratio does not exceed 5.00 to 1.00 for the fiscal quarter ending June 30, 2021 (as compared to 5.50 to 1.00 under the 2020 Amendments), the covenant period will end at the time Realogy Group delivers the compliance certificate to the lenders for such period; however, in either instance, the gradual step down in the senior secured leverage ratio described above will continue to apply. The covenants tightened during this covenant period include the reduction or elimination of the amount available for certain types of additional indebtedness, liens, restricted payments (including dividends and stock repurchases), investments (including acquisitions and joint ventures), and voluntary junior debt repayments. As was the case under the 2020 Amendments, Realogy Group also may elect to end the covenant period at any time, provided the senior secured leverage ratio does not exceed 4.75 to 1.00 as of the most recently ended quarter for which financial statements have been delivered. In such event, the senior secured leverage ratio will reset to the pre-amendment level of 4.75 to 1.00 thereafter. Senior Secured Credit Facility The Senior Secured Credit Facility includes: (a) the Term Loan B Facility issued in the original aggregate principal amount of $1,080 million with a maturity date of February 2025. The Term Loan B Facility has quarterly amortization payments totaling 1% per annum of the initial aggregate principal amount. The interest rate with respect to term loans under the Term Loan B Facility is based on, at Realogy Group's option, adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or ABR plus 1.25% (with an ABR floor of 1.75%); and (b) a $1,425 million Revolving Credit Facility which includes a $125 million letter of credit subfacility. The Revolving Credit Facility includes available capacity under the Non-extended Revolving Credit Commitment of $477 million and the available capacity under the Extended Revolving Credit Commitment of $948 million. The Non-extended Revolving Credit Commitment expires in February 2023 and, subject to earlier spring maturity described above, the Extended Revolving Credit Commitment expires in February 2025. The interest rate with respect to revolving loans under the Revolving Credit Facility is based on, at Realogy Group's option, adjusted LIBOR or ABR plus an additional margin subject to the following adjustments based on the Company’s then current senior secured leverage ratio: Senior Secured Leverage Ratio Applicable LIBOR Margin Applicable ABR Margin Greater than 3.50 to 1.00 2.50% 1.50% Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 2.25% 1.25% Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 2.00% 1.00% Less than 2.00 to 1.00 1.75% 0.75% The obligations under the Senior Secured Credit Agreement are secured to the extent legally permissible by substantially all of the assets of Realogy Group, Realogy Intermediate and all of their domestic subsidiaries, other than certain excluded subsidiaries and subject to certain exceptions. Realogy Group's Senior Secured Credit Agreement contains financial, affirmative and negative covenants as well as a financial covenant that Realogy Group maintain (so long as commitments under the Revolving Credit Facility are outstanding) a maximum permitted senior secured leverage ratio. As of March 31, 2021, under the 2021 Amendments, Realogy Group was required to maintain a senior secured leverage ratio not to exceed 5.25 to 1.00. The leverage ratio is tested quarterly regardless of the amount of borrowings outstanding and letters of credit issued under the Revolving Credit Facility at the testing date. Total senior secured net debt does not include the securitization obligations, 7.625% Senior Secured Second Lien Notes, or our unsecured indebtedness, including the Unsecured Notes. At March 31, 2021, Realogy Group was in compliance with the senior secured leverage ratio covenant with a senior secured leverage ratio of 0.64 to 1.00 . For the calculation of the senior secured leverage ratio for the first quarter of 2021, see Part I., "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Senior Secured Leverage Ratio applicable to our Senior Secured Credit Facility and Term Loan A Facility". Term Loan A Facility The term loans under the Term Loan A Facility were originally $750 million and include the Non-extended Term Loan A due February 2023 and Extended Term Loan A due February 2025, subject to earlier spring maturity described above. The Extended Term Loan A provides for quarterly amortization based on a percentage of the principal amount of $237 million, commencing with the quarter ending June 30, 2021, as follows: 0.625% per quarter from June 30, 2021 to March 31, 2022; 1.25% per quarter from June 30, 2022 to March 31, 2023; 1.875% per quarter from June 30, 2023 to March 31, 2024; and 2.50% per quarter for periods ending on or after June 30, 2024, with the balance of the Extended Term Loan A due at maturity on February 8, 2025. No amortization payments are required on the Non-extended Term Loan A. The interest rates with respect to the Term Loan A Facility are based on, at the Company's option, adjusted LIBOR or ABR plus an additional margin subject to the following adjustments based on the Company's then current senior secured leverage ratio: Senior Secured Leverage Ratio Applicable LIBOR Margin Applicable ABR Margin Greater than 3.50 to 1.00 2.50% 1.50% Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 2.25% 1.25% Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 2.00% 1.00% Less than 2.00 to 1.00 1.75% 0.75% The Term Loan A Agreement contains covenants that are substantially similar to those in the Senior Secured Credit Agreement. Senior Secured Second Lien Notes The 7.625% Senior Secured Second Lien Notes mature on June 15, 2025 and interest is payable semiannually on June 15 and December 15 of each year. The 7.625% Senior Secured Second Lien Notes are guaranteed on a senior secured second priority basis by Realogy Intermediate and each domestic subsidiary of Realogy Group, other than certain excluded entities, that is a guarantor under its Senior Secured Credit Facility and Term Loan A Facility and certain of its outstanding debt securities. The 7.625% Senior Secured Second Lien Notes are also guaranteed by Realogy Holdings on an unsecured senior subordinated basis. The 7.625% Senior Secured Second Lien Notes are secured by substantially the same collateral as Realogy Group's existing first lien obligations under its Senior Secured Credit Facility and Term Loan A Facility on a second priority basis. The indentures governing the 7.625% Senior Secured Second Lien Notes contain various covenants that limit the ability of Realogy Intermediate, Realogy Group and Realogy Group's restricted subsidiaries to take certain actions, which covenants are subject to a number of important exceptions and qualifications. These covenants are substantially similar to the covenants in the indenture governing the 9.375% Senior Notes due 2027, as described under Unsecured Notes below. Unsecured Notes In January and February 2021, the Company issued an aggregate principal amount of $900 million of 5.75% Senior Notes due 2029 and used the gross proceeds of $905 million to repay $250 million of outstanding borrowings under the Term Loan A Facility and $655 million of outstanding borrowings under the Term Loan B Facility. The 4.875% Senior Notes, 9.375% Senior Notes and 5.75% Senior Notes (collectively the "Unsecured Notes") are unsecured senior obligations of Realogy Group that mature on June 1, 2023, April 1, 2027 and January 15, 2029, respectively. Interest on the Unsecured Notes is payable each year semiannually on June 1 and December 1 for the 4.875% Senior Notes, on April 1 and October 1 for the 9.375% Senior Notes, and on January 15 and July 15 for the 5.75% Senior Notes (commencing on July 15, 2021). The Unsecured Notes are guaranteed on an unsecured senior basis by each domestic subsidiary of Realogy Group that is a guarantor under the Senior Secured Credit Facility, Term Loan A Facility and Realogy Group's outstanding debt securities and are guaranteed by Realogy Holdings on an unsecured senior subordinated basis. The indenture governing the 4.875% Senior Notes contains various negative covenants that limit Realogy Group's and its restricted subsidiaries' ability to take certain actions, which covenants are subject to a number of important exceptions and qualifications. These covenants include limitations on Realogy Group's and its restricted subsidiaries’ ability to (a) incur or guarantee additional indebtedness, or issue disqualified stock or preferred stock, (b) pay dividends or make distributions to their stockholders, (c) repurchase or redeem capital stock, (d) make investments or acquisitions, (e) incur restrictions on the ability of certain of their subsidiaries to pay dividends or to make other payments to Realogy Group, (f) enter into transactions with affiliates, (g) create liens, (h) merge or consolidate with other companies or transfer all or substantially all of their assets, (i) transfer or sell assets, including capital stock of subsidiaries and (j) prepay, redeem or repurchase debt that is subordinated in right of payment to the Unsecured Notes. The covenants in the indenture governing the 9.375% Senior Notes are substantially similar to the covenants in the indentures governing the 4.875% Senior Notes, with certain exceptions, including several changes relating to Realogy Group's ability to make restricted payments, and in particular, its ability to repurchase shares and pay dividends. Specifically, with respect to the 9.375% Senior Notes Indenture, (a) neither the cumulative credit basket (nor any other basket) is available to repurchase shares to the extent the consolidated leverage ratio is equal to or greater than 4.0 to 1.0 on a pro forma basis giving effect to such repurchase; (b) the cumulative credit basket for which restricted payments may otherwise be available is equal to 50% of Consolidated Net Income (as defined in such indenture) for the period (taken as one accounting period) from January 1, 2019 to the end of the most recently ended fiscal quarter for which internal financial statements are available at the time of any such restricted payment; provided however, that, to the extent the Consolidated Leverage Ratio is equal to or greater than 4.0 to 1.0, then 25% of the Consolidated Net Income for the aforementioned period will be included; (c) the consolidated leverage ratio must be less than 3.0 to 1.0 to use the unlimited general restricted payment basket (which payments will reduce the cumulative credit basket, but not below zero); (d) the $100 million general restricted payment basket may be used only for Restricted Investments (as defined in such indenture); and (e) a restricted payment basket is available for up to $45 million of dividends per calendar year (with any actual dividends deducted from the available cumulative credit basket). The covenants in the indenture governing 5.75% Senior Notes are substantially similar to the covenants in the indentures governing the 4.875% Senior Notes, but also include some of the additional limitations of the 9.375% Senior Notes. The consolidated leverage ratio is measured by dividing Realogy Group's total net debt by the trailing four quarters EBITDA. EBITDA, as defined in the indenture governing the 9.375% Senior Notes (as well as the other Unsecured Notes and 7.625% Senior Secured Second Lien Notes), is substantially similar to EBITDA calculated on a Pro Forma Basis, as those terms are defined in the Senior Secured Credit Agreement. Net debt under the indentures governing the 9.375% Senior Notes, 7.625% Senior Secured Second Lien Notes and 5.75% Senior Notes is Realogy Group's total indebtedness (excluding securitizations) less (i) its cash and cash equivalents in excess of restricted cash and (ii) a $200 million seasonality adjustment permitted when measuring the ratio on a date during the period of March 1 to May 31. Securitization Obligations Realogy Group has secured obligations through Apple Ridge Funding LLC under a securitization program which expires in June 2021. As of March 31, 2021, the Company had $200 million of borrowing capacity under the Apple Ridge Funding LLC securitization program with $97 million being utilized, leaving $103 million of available capacity subject to maintaining sufficient relocation related assets to collateralize the securitization obligation. Realogy Group, through a special purpose entity known as Cartus Financing Limited, has agreements providing for a £10 million revolving loan facility and a £5 million working capital facility which expires in August 2021. As of March 31, 2021, there were $3 million of outstanding borrowings under the facilities leaving $18 million of available capacity subject to maintaining sufficient relocation related assets to collateralize the securitization obligation. These Cartus Financing Limited facilities are secured by the relocation assets of a U.K. government contract in this special purpose entity and are therefore classified as permitted securitization financings as defined in Realogy Group’s Senior Secured Credit Agreement and the indentures governing the Unsecured Notes and 7.625% Senior Secured Second Lien Notes. The Apple Ridge entities and the Cartus Financing Limited entity are consolidated special purpose entities that are utilized to securitize relocation receivables and related assets. These assets are generated from advancing funds on behalf of clients of Realogy Group’s relocation operations in order to facilitate the relocation of their employees. Assets of these special purpose entities are not available to pay Realogy Group’s general obligations. Under the Apple Ridge program, provided no termination or amortization event has occurred, any new receivables generated under the designated relocation management agreements are sold into the securitization program and as new eligible relocation management agreements are entered into, the new agreements are designated to the program. The Apple Ridge program has restrictive covenants and trigger events, including performance triggers linked to the age and quality of the underlying assets, foreign obligor limits, multicurrency limits, financial reporting requirements, restrictions on mergers and change of control, any uncured breach of Realogy Group’s senior secured leverage ratio under Realogy Group’s Senior Secured Credit Facility, and cross-defaults to Realogy Group’s material indebtedness. The occurrence of a trigger event under the Apple Ridge securitization facility could restrict our ability to access new or existing funding under this facility or result in termination of the facility, either of which would adversely affect the operation of the Company's relocation services. Certain of the funds that Realogy Group receives from relocation receivables and related assets are required to be utilized to repay securitization obligations. These obligations are collateralized by $134 million and $135 million of underlying relocation receivables and other related relocation assets at March 31, 2021 and December 31, 2020, respectively. Substantially all relocation related assets are realized in less than twelve months from the transaction date. Accordingly, all of Realogy Group's securitization obligations are classified as current in the accompanying Consolidated Balance Sheets. Interest incurred in connection with borrowings under these facilities amounted to $1 million and $2 million for the three months ended March 31, 2021 and 2020, respectively. This interest is recorded within net revenues in the accompanying Condensed Consolidated Statements of Operations as related borrowings are utilized to fund Realogy Group's relocation operations where interest is generally earned on such assets. These securitization obligations represent floating rate debt for which the average weighted interest rate was 3.9% and 3.8% for the three months ended March 31, 2021 and 2020, respectively. Gain/Loss on the Early Extinguishment of Debt and Write-Off of Financing Costs As a result of the refinancing transactions in January and February 2021, the Company recorded a loss on the early extinguishment of debt of $17 million and wrote off certain financing costs of $1 million to interest expense during the three months ended March 31, 2021. |
Restructuring Costs Restructuri
Restructuring Costs Restructuring Costs | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | . RESTRUCTURING COSTS Restructuring charges were $5 million and $12 million for the three months ended March 31, 2021 and 2020, respectively. The components of the restructuring charges for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 Personnel-related costs (1) $ 2 $ 3 Facility-related costs (2) 3 9 Total restructuring charges $ 5 $ 12 _______________ (1) Personnel-related costs consist of severance costs provided to employees who have been terminated and duplicate payroll costs during transition. (2) Facility-related costs consist of costs associated with planned facility closures such as contract termination costs, amortization of lease assets that will continue to be incurred under the contract for its remaining term without economic benefit to the Company, accelerated depreciation on asset disposals and other facility and employee relocation related costs. Facility and Operational Efficiencies Program Beginning in the first quarter of 2019, the Company commenced the implementation of a plan to accelerate its office consolidation to reduce storefront costs, as well as institute other operational efficiencies to drive profitability. In addition, the Company commenced a plan to transform and centralize certain aspects of the operational support and drive changes in how it serves its affiliated independent sales agents from a marketing and technology perspective to help such agents be more productive and enable them to make their businesses more profitable. In the third quarter of 2019, the Company reduced headcount in connection with the wind-down of a former affinity real estate benefit program. In the fourth quarter of 2019, the Company expanded its operational efficiencies program to focus on workforce optimization. This workforce optimization initiative was focused on consolidating similar or overlapping roles, reducing the number of hierarchical layers and streamlining work and decision making. Furthermore, at the end of 2019, the Company expanded these strategic initiatives which have resulted in additional operational and facility related efficiencies in 2020. As a result of the COVID-19 pandemic, the Company transitioned substantially all of its employees to a remote-work environment in mid-March 2020 and have worked to comply with state and local regulators to ensure safe working conditions. Many of the Company's employees continued to work remotely on a full-time or hybrid basis. This transition to remote work has allowed the Company to reevaluate its office space needs. As a result, additional facility and operational efficiencies were identified and implemented in the second half of 2020 and additional facility initiatives are expected in 2021. The following is a reconciliation of the beginning and ending reserve balances related to the Facility and Operational Efficiencies Program: Personnel-related costs Facility-related costs Total Balance at December 31, 2020 $ 5 $ 22 $ 27 Restructuring charges (1) 2 3 5 Costs paid or otherwise settled (4) (5) (9) Balance at March 31, 2021 $ 3 $ 20 $ 23 _______________ (1) In addition, the Company incurred an additional $1 million of facility-related costs for lease asset impairments in connection with the Facility and Operational Efficiencies Program during the three months ended March 31, 2021. The following table shows the total costs currently expected to be incurred by type of cost related to the Facility and Operational Efficiencies Program: Total amount expected to be incurred (1) Amount incurred Total amount remaining to be incurred (1) Personnel-related costs $ 56 $ 52 $ 4 Facility-related costs 109 64 45 Other restructuring costs 1 1 — Total $ 166 $ 117 $ 49 _______________ (1) Facility-related costs include potential lease asset impairments to be incurred under the Facility and Operational Efficiencies Program. The following table shows the total costs currently expected to be incurred by reportable segment related to the Facility and Operational Efficiencies Program: Total amount expected to be incurred Amount incurred Total amount remaining to be incurred Realogy Franchise Group $ 32 $ 30 $ 2 Realogy Brokerage Group 82 62 20 Realogy Title Group 6 6 — Corporate and Other 46 19 27 Total $ 166 $ 117 $ 49 |
Earnings (Loss) Per Share (Note
Earnings (Loss) Per Share (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS (LOSS) PER SHARE Earnings (loss) per share attributable to Realogy Holdings Basic earnings (loss) per share is computed based on net income (loss) attributable to Realogy Holdings stockholders divided by the basic weighted-average shares outstanding during the period. Dilutive earnings (loss) per share is computed consistently with the basic computation while giving effect to all dilutive potential common shares and common share equivalents that were outstanding during the period. Realogy Holdings uses the treasury stock method to reflect the potential dilutive effect of unvested stock awards and unexercised options. The following table sets forth the computation of basic and diluted earnings (loss) per share: Three Months Ended March 31, (in millions, except per share data) 2021 2020 Numerator: Net income (loss) attributable to Realogy Holdings shareholders $ 33 $ (462) Denominator: Weighted average common shares outstanding (denominator for basic earnings (loss) per share calculation) 115.9 114.7 Dilutive effect of stock-based compensation (a)(b) 2.5 — Weighted average common shares outstanding (denominator for diluted earnings (loss) per share calculation) 118.4 114.7 Earnings (loss) per share attributable to Realogy Holdings shareholders: Basic earnings (loss) per share $ 0.28 $ (4.03) Diluted earnings (loss) per share $ 0.28 $ (4.03) _______________ (a) The three months ended March 31, 2021 exclude 5.8 million shares of common stock issuable for incentive equity awards, which include performance share units based on the achievement of target amounts, that are anti-dilutive to the diluted earnings per share computation. (b) The Company was in a net loss position for the three months ended March 31, 2020 and therefore the impact of incentive equity awards were excluded from the computation of dilutive loss per share as the inclusion of such amounts would be anti-dilutive. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The reportable segments presented below represent the Company’s segments for which separate financial information is available and which is utilized on a regular basis by its chief operating decision maker to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its segments. Management evaluates the operating results of each of its reportable segments based upon revenue and Operating EBITDA. Operating EBITDA is defined by us as net income (loss) before depreciation and amortization, interest expense, net (other than relocation services interest for securitization assets and securitization obligations), income taxes, and other items that are not core to the operating activities of the Company such as restructuring charges, former parent legacy items, gains or losses on the early extinguishment of debt, impairments, gains or losses on discontinued operations and gains or losses on the sale of investments or other assets. The Company’s presentation of Operating EBITDA may not be comparable to similar measures used by other companies. Revenues (a) Three Months Ended March 31, 2021 2020 Realogy Franchise Group $ 254 $ 220 Realogy Brokerage Group 1,171 869 Realogy Title Group 201 137 Corporate and Other (b) (79) (58) Total Company $ 1,547 $ 1,168 _______________ (a) Transactions between segments are eliminated in consolidation. Revenues for the Realogy Franchise Group include intercompany royalties and marketing fees paid by Realogy Brokerage Group of $79 million and $58 million for the three months ended March 31, 2021 and 2020, respectively. Such amounts are eliminated through the Corporate and Other line. (b) Includes the elimination of transactions between segments. Operating EBITDA Three Months Ended March 31, 2021 2020 Realogy Franchise Group $ 141 $ 96 Realogy Brokerage Group (5) (51) Realogy Title Group 61 12 Corporate and Other (a) (35) (25) Total Company 162 32 Less: Depreciation and amortization 51 45 Interest expense, net 38 101 Income tax expense (benefit) 17 (141) Restructuring costs, net (b) 5 12 Impairments (c) 1 477 Loss on the early extinguishment of debt (d) 17 — Net income (loss) attributable to Realogy Holdings and Realogy Group $ 33 $ (462) _______________ (a) Includes the elimination of transactions between segments. (b) The three months ended March 31, 2021 includes restructuring charges of $2 million at Realogy Franchise Group, $2 million at Realogy Brokerage Group and $1 million at Corporate and Other. The three months ended March 31, 2020 includes restructuring charges of $2 million at Realogy Franchise Group, $9 million at Realogy Brokerage Group and $1 million at Realogy Title Group. (c) Impairments for the three months ended March 31, 2021 relate to lease asset impairments. Non-cash impairments for the three months ended March 31, 2020 include: • a goodwill impairment charge of $413 million related to Realogy Brokerage Group; • an impairment charge of $30 million related to Realogy Franchise Group's trademarks; • $30 million of impairment charges during the three months ended March 31, 2020 (while Cartus Relocation Services was held for sale) to reduce the net assets to the estimated proceeds; and • other asset impairments of $4 million primarily related to lease asset impairments. (d) Loss on the early extinguishment of debt is recorded in Corporate and Other. |
Basis Of Presentation Basis of
Basis Of Presentation Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fair Value Measurement, Policy | The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level Input: Input Definitions: Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The availability of observable inputs can vary from asset to asset and is affected by a wide variety of factors, including, for example, the type of asset, whether the asset is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level III. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value of financial instruments is generally determined by reference to quoted market values. In cases where quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques, as appropriate. The fair value of interest rate swaps is determined based upon a discounted cash flow approach. The Company measures financial instruments at fair value on a recurring basis and recognizes transfers within the fair value hierarchy at the end of the fiscal quarter in which the change in circumstances that caused the transfer occurred. The following table summarizes fair value measurements by level at March 31, 2021 for assets and liabilities measured at fair value on a recurring basis: Level I Level II Level III Total Deferred compensation plan assets (included in other non-current assets) $ 1 $ — $ — $ 1 Interest rate swaps (included in other non-current liabilities) — 63 — 63 Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) — — 3 3 The following table summarizes fair value measurements by level at December 31, 2020 for assets and liabilities measured at fair value on a recurring basis: Level I Level II Level III Total Deferred compensation plan assets (included in other non-current assets) $ 1 $ — $ — $ 1 Interest rate swaps (included in other non-current liabilities) — 81 — 81 Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) — — 3 3 The fair value of the Company’s contingent consideration for acquisitions is measured using a probability weighted-average discount rate to estimate future cash flows based upon the likelihood of achieving future operating results for individual acquisitions. These assumptions are deemed to be unobservable inputs and as such the Company’s contingent consideration is classified within Level III of the valuation hierarchy. The Company reassesses the fair value of the contingent consideration liabilities on a quarterly basis. The following table presents changes in Level III financial liabilities measured at fair value on a recurring basis: Level III Fair value of contingent consideration at December 31, 2020 $ 3 Additions: contingent consideration related to acquisitions completed during the period 1 Reductions: payments of contingent consideration (1) Changes in fair value (reflected in general and administrative expenses) — Fair value of contingent consideration at March 31, 2021 $ 3 The following table summarizes the principal amount of the Company’s indebtedness compared to the estimated fair value, primarily determined by quoted market values, at: March 31, 2021 December 31, 2020 Debt Principal Amount Estimated Principal Amount Estimated Senior Secured Credit Facility: Non-extended Revolving Credit Commitment $ — $ — $ — $ — Extended Revolving Credit Commitment — — — — Term Loan B 390 385 1,048 1,032 Term Loan A Facility: Non-extended Term Loan A 197 194 684 671 Extended Term Loan A 237 234 — — 7.625% Senior Secured Second Lien Notes 550 598 550 595 4.875% Senior Notes 407 419 407 415 9.375% Senior Notes 550 609 550 609 5.75% Senior Notes 900 889 — — _______________ (a) The fair value of the Company's indebtedness is categorized as Level II. |
Equity Method Investments, Policy | Equity Method Investments At March 31, 2021 and December 31, 2020, the Company had various equity method investments which are recorded within other non-current assets on the accompanying Condensed Consolidated Balance Sheets. The Company's investment in Guaranteed Rate Affinity, LLC ("Guaranteed Rate Affinity") at Realogy Title Group had an investment balance of $90 million at both March 31, 2021 and December 31, 2020. The Company recorded equity earnings of $30 million and $9 million related to its investment in Guaranteed Rate Affinity for the first quarter of 2021 and 2020, respectively. The Company received $30 million in cash dividends from Guaranteed Rate Affinity during the three months ended March 31, 2021 and no cash dividends during the three months ended March 31, 2020. The Company's other equity method investments had investment balances totaling $12 million and $10 million at March 31, 2021 and December 31, 2020, respectively. The Company recorded $1 million equity earnings from the operations of these equity method investments in the first quarter of 2021 and recorded no equity earnings or losses for the first quarter of 2020. The Company received $1 million in cash dividends from these equity method investments during both the three months ended March 31, 2021 and 2020. |
Income Tax, Policy | Income Taxes The Company's provision for income taxes in interim periods is computed by applying its estimated annual effective tax rate against the income before income taxes for the period. In addition, non-recurring or discrete items are recorded in the period in which they occur. The provision for income taxes was an expense of $17 million and a benefit of $141 million for the three months ended March 31, 2021 and 2020, respectively. |
Derivatives, Policy | Derivative Instruments The Company records derivatives and hedging activities on the balance sheet at their respective fair values. The Company enters into interest rate swaps to manage its exposure to changes in interest rates associated with its variable rate borrowings. As of March 31, 2021, the Company had interest rate swaps with an aggregate notional value of $1,000 million to offset the variability in cash flows resulting from the term loan facilities as follows: Notional Value (in millions) Commencement Date Expiration Date $450 November 2017 November 2022 $400 August 2020 August 2025 $150 November 2022 November 2027 The swaps help to protect our outstanding variable rate borrowings from future interest rate volatility. The Company has not elected to utilize hedge accounting for these interest rate swaps; therefore, any change in fair value is recorded in the Condensed Consolidated Statements of Operations. The fair value of derivative instruments was as follows: Not Designated as Hedging Instruments Balance Sheet Location March 31, 2021 December 31, 2020 Interest rate swap contracts Other non-current liabilities 63 81 The effect of derivative instruments on earnings was as follows: Derivative Instruments Not Designated as Hedging Instruments Location of Loss or (Gain) Recognized for Derivative Instruments Loss or (Gain) Recognized on Derivatives Three Months Ended March 31, 2021 2020 Interest rate swap contracts Interest expense $ (13) $ 51 |
Revenue, Policy | Revenue Revenue is recognized upon the transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services in accordance with the revenue standard. The Company's revenue is disaggregated by major revenue categories on our Condensed Consolidated Statements of Operations and further disaggregated by business segment as follows: Three Months Ended March 31, Realogy Franchise Group Realogy Brokerage Group Realogy Title Corporate and Other Total 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Gross commission income (a) $ — $ — $ 1,154 $ 850 $ — $ — $ — $ — $ 1,154 $ 850 Service revenue (b) 47 64 7 5 195 133 — — 249 202 Franchise fees (c) 181 127 — — — — (76) (56) 105 71 Other (d) 26 29 10 14 6 4 (3) (2) 39 45 Net revenues $ 254 $ 220 $ 1,171 $ 869 $ 201 $ 137 $ (79) $ (58) $ 1,547 $ 1,168 ______________ (a) Gross commission income at Realogy Brokerage Group is recognized at a point in time at the closing of a homesale transaction. (b) Service revenue primarily consists of title and escrow fees at Realogy Title Group and are recognized at a point in time at the closing of a homesale transaction. Service revenue at Realogy Franchise Group includes relocation fees, which are recognized as revenue 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 Realogy 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 Realogy 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, 2021 Additions during the period Recognized as Revenue during the period Ending Balance at March 31, 2021 Realogy Franchise Group: Deferred area development fees (a) $ 43 $ 1 $ (3) $ 41 Deferred brand marketing fund fees (b) 14 24 (23) 15 Deferred outsourcing management fees (c) 3 8 (8) 3 Other deferred income related to revenue contracts 10 9 (8) 11 Total Realogy Franchise Group 70 42 (42) 70 Realogy Brokerage Group: Advanced commissions related to development business (d) 9 — — 9 Other deferred income related to revenue contracts 3 2 (1) 4 Total Realogy Brokerage Group 12 2 (1) 13 Total $ 82 $ 44 $ (43) $ 83 _______________ (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 Realogy’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 Realogy Brokerage Group. (c) The Company earns revenues from outsourcing management fees charged to clients that may cover several of the relocation services listed above, 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 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. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy | Allowance for Doubtful Accounts The 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 reasonable and supportable forecasts of future losses. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy | Restricted Cash Restricted cash primarily relates to amounts specifically designated as collateral for the repayment of outstanding borrowings under the Company’s securitization facilities. Such amounts approximated $5 million at March 31, 2021 and $3 million at December 31, 2020. |
New Accounting Pronouncements, Policy | Recently Adopted Accounting Pronouncements The Company adopted the new standard on Simplifying the Accounting for Income Taxes effective January 1, 2021. The new standard clarifies and simplifies aspects of the accounting for income taxes to help promote consistent application of GAAP by eliminating certain exceptions to the general principles of ASC Topic 740, Income Taxes. The adoption of this guidance did not have an impact to the Company’s Consolidated Financial Statements upon adoption on January 1, 2021. Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). Recently issued standards were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. The FASB issued its new standard on Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Basis Of Presentation (Tables)
Basis Of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fair Value Hierarchy | The following table summarizes fair value measurements by level at March 31, 2021 for assets and liabilities measured at fair value on a recurring basis: Level I Level II Level III Total Deferred compensation plan assets (included in other non-current assets) $ 1 $ — $ — $ 1 Interest rate swaps (included in other non-current liabilities) — 63 — 63 Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) — — 3 3 The following table summarizes fair value measurements by level at December 31, 2020 for assets and liabilities measured at fair value on a recurring basis: Level I Level II Level III Total Deferred compensation plan assets (included in other non-current assets) $ 1 $ — $ — $ 1 Interest rate swaps (included in other non-current liabilities) — 81 — 81 Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) — — 3 3 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents changes in Level III financial liabilities measured at fair value on a recurring basis: Level III Fair value of contingent consideration at December 31, 2020 $ 3 Additions: contingent consideration related to acquisitions completed during the period 1 Reductions: payments of contingent consideration (1) Changes in fair value (reflected in general and administrative expenses) — Fair value of contingent consideration at March 31, 2021 $ 3 |
Fair Value, by Balance Sheet Grouping | The following table summarizes the principal amount of the Company’s indebtedness compared to the estimated fair value, primarily determined by quoted market values, at: March 31, 2021 December 31, 2020 Debt Principal Amount Estimated Principal Amount Estimated Senior Secured Credit Facility: Non-extended Revolving Credit Commitment $ — $ — $ — $ — Extended Revolving Credit Commitment — — — — Term Loan B 390 385 1,048 1,032 Term Loan A Facility: Non-extended Term Loan A 197 194 684 671 Extended Term Loan A 237 234 — — 7.625% Senior Secured Second Lien Notes 550 598 550 595 4.875% Senior Notes 407 419 407 415 9.375% Senior Notes 550 609 550 609 5.75% Senior Notes 900 889 — — _______________ (a) The fair value of the Company's indebtedness is categorized as Level II. |
Schedule of Derivative Instruments | As of March 31, 2021, the Company had interest rate swaps with an aggregate notional value of $1,000 million to offset the variability in cash flows resulting from the term loan facilities as follows: Notional Value (in millions) Commencement Date Expiration Date $450 November 2017 November 2022 $400 August 2020 August 2025 $150 November 2022 November 2027 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative instruments was as follows: Not Designated as Hedging Instruments Balance Sheet Location March 31, 2021 December 31, 2020 Interest rate swap contracts Other non-current liabilities 63 81 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The effect of derivative instruments on earnings was as follows: Derivative Instruments Not Designated as Hedging Instruments Location of Loss or (Gain) Recognized for Derivative Instruments Loss or (Gain) Recognized on Derivatives Three Months Ended March 31, 2021 2020 Interest rate swap contracts Interest expense $ (13) $ 51 |
Disaggregation of Revenue | The Company's revenue is disaggregated by major revenue categories on our Condensed Consolidated Statements of Operations and further disaggregated by business segment as follows: Three Months Ended March 31, Realogy Franchise Group Realogy Brokerage Group Realogy Title Corporate and Other Total 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Gross commission income (a) $ — $ — $ 1,154 $ 850 $ — $ — $ — $ — $ 1,154 $ 850 Service revenue (b) 47 64 7 5 195 133 — — 249 202 Franchise fees (c) 181 127 — — — — (76) (56) 105 71 Other (d) 26 29 10 14 6 4 (3) (2) 39 45 Net revenues $ 254 $ 220 $ 1,171 $ 869 $ 201 $ 137 $ (79) $ (58) $ 1,547 $ 1,168 ______________ (a) Gross commission income at Realogy Brokerage Group is recognized at a point in time at the closing of a homesale transaction. (b) Service revenue primarily consists of title and escrow fees at Realogy Title Group and are recognized at a point in time at the closing of a homesale transaction. Service revenue at Realogy Franchise Group includes relocation fees, which are recognized as revenue 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 Realogy 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 Realogy Franchise Group and other miscellaneous revenues across all of the business segments. |
Deferred Revenue by Arrangement | 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, 2021 Additions during the period Recognized as Revenue during the period Ending Balance at March 31, 2021 Realogy Franchise Group: Deferred area development fees (a) $ 43 $ 1 $ (3) $ 41 Deferred brand marketing fund fees (b) 14 24 (23) 15 Deferred outsourcing management fees (c) 3 8 (8) 3 Other deferred income related to revenue contracts 10 9 (8) 11 Total Realogy Franchise Group 70 42 (42) 70 Realogy Brokerage Group: Advanced commissions related to development business (d) 9 — — 9 Other deferred income related to revenue contracts 3 2 (1) 4 Total Realogy Brokerage Group 12 2 (1) 13 Total $ 82 $ 44 $ (43) $ 83 _______________ (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 Realogy’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 Realogy Brokerage Group. (c) The Company earns revenues from outsourcing management fees charged to clients that may cover several of the relocation services listed above, 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 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by segment and changes in the carrying amount | Goodwill by reporting unit and changes in the carrying amount are as follows: Realogy Franchise Group Realogy Brokerage Group Realogy Total Balance at December 31, 2020 $ 2,509 $ 245 $ 156 $ 2,910 Goodwill acquired (a) — — 2 2 Goodwill reduction for sale of a business (b) (3) — — (3) Balance at March 31, 2021 $ 2,506 $ 245 $ 158 $ 2,909 Accumulated impairment losses (c) $ 1,447 $ 808 $ 324 $ 2,579 _______________ (a) Goodwill acquired during the three months ended March 31, 2021 relates to the acquisition of one title and settlement operation. (b) Goodwill reduction during the three months ended March 31, 2021 relates to the sale of a relocation related business. (c) Includes impairment charges which reduced goodwill by $540 million during 2020, $253 million during 2019, $1,279 million during 2008 and $507 million during 2007. |
Intangible Assets | Intangible assets are as follows: As of March 31, 2021 As of December 31, 2020 Gross Accumulated Net Gross Accumulated Net Amortizable—Franchise agreements (a) $ 2,010 $ 939 $ 1,071 $ 2,010 $ 922 $ 1,088 Indefinite life—Trademarks (b) $ 685 $ 685 $ 685 $ 685 Other Intangibles Amortizable—License agreements (c) $ 45 $ 13 $ 32 $ 45 $ 13 $ 32 Amortizable—Customer relationships (d) 510 382 128 509 376 133 Indefinite life—Title plant shares (e) 20 20 20 20 Amortizable—Other (f) 14 11 3 14 11 3 Total Other Intangibles $ 589 $ 406 $ 183 $ 588 $ 400 $ 188 _______________ (a) Generally amortized over a period of 30 years. (b) Primarily related to real estate franchise brands which are expected to generate future cash flows for an indefinite period of time. (c) Relates to the Sotheby’s International Realty ® and Better Homes and Gardens ® Real Estate agreements which are being amortized over 50 years (the contractual term of the license agreements). (d) Relates to the customer relationships at Realogy Franchise Group, Realogy Title Group and Realogy Brokerage Group. These relationships are being amortized over a period of 2 to 20 years. (e) Ownership in a title plant is required to transact title insurance in certain states. The Company expects to generate future cash flows for an indefinite period of time. (f) Consists of covenants not to compete which are amortized over their contract lives and other intangibles which are generally amortized over periods ranging from 5 to 10 years. |
Intangible asset amortization expense | Intangible asset amortization expense is as follows: Three Months Ended March 31, 2021 2020 Franchise agreements $ 17 $ 17 Customer relationships 6 1 Other — 1 Total $ 23 $ 19 |
Accrued Expenses And Other Cu_2
Accrued Expenses And Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of: March 31, 2021 December 31, 2020 Accrued payroll and related employee costs $ 127 $ 239 Advances from clients 58 65 Accrued volume incentives 39 46 Accrued commissions 47 48 Restructuring accruals 14 16 Deferred income 50 46 Accrued interest 58 18 Current portion of finance lease liabilities 12 13 Due to former parent 19 19 Other 99 90 Total accrued expenses and other current liabilities $ 523 $ 600 |
Short And Long-Term Debt (Table
Short And Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Total Indebtedness | Total indebtedness is as follows: March 31, 2021 December 31, 2020 Senior Secured Credit Facility: Non-extended Revolving Credit Commitment $ — $ — Extended Revolving Credit Commitment — — Term Loan B 386 1,036 Term Loan A Facility: Non-extended Term Loan A 196 681 Extended Term Loan A 236 — 7.625% Senior Secured Second Lien Notes 541 540 4.875% Senior Notes 406 406 9.375% Senior Notes 544 544 5.75% Senior Notes 898 — Total Short-Term & Long-Term Debt $ 3,207 $ 3,207 Securitization Obligations: Apple Ridge Funding LLC $ 97 $ 102 Cartus Financing Limited 3 4 Total Securitization Obligations $ 100 $ 106 |
Schedule of Debt | As of March 31, 2021, the Company’s borrowing arrangements were as follows: Interest Expiration Principal Amount Unamortized Discount (Premium) and Debt Issuance Costs Net Amount Senior Secured Credit Facility (1): Non-extended Revolving Credit Commitment (2) February 2023 $ — $ * $ — Extended Revolving Credit Commitment (2) February 2025 (3) — * — Term Loan B (4) February 2025 390 4 386 Term Loan A Facility (5): Non-extended Term Loan A (6) February 2023 197 1 196 Extended Term Loan A (7) February 2025 (3) 237 1 236 Senior Secured Second Lien Notes 7.625% June 2025 550 9 541 Senior Notes 4.875% June 2023 407 1 406 Senior Notes 9.375% April 2027 550 6 544 Senior Notes 5.75% January 2029 900 2 898 Total Short-Term & Long-Term Debt $ 3,231 $ 24 $ 3,207 Securitization obligations: (8) Apple Ridge Funding LLC (9) June 2021 $ 97 $ * $ 97 Cartus Financing Limited (10) August 2021 3 * 3 Total Securitization Obligations $ 100 $ — $ 100 _______________ * The debt issuance costs related to our Revolving Credit Facility and securitization obligations are classified as a deferred financing asset within other assets. (1) The available capacity under the Non-extended Revolving Credit Commitment is $477 million, while the available capacity under the Extended Revolving Credit Commitment is $948 million. As of March 31, 2021, there were no outstanding borrowings under either the Non-extended Revolving Credit Commitment or Extended Revolving Credit Commitment and $43 million of outstanding undrawn letters of credit. The Non-extended Revolving Credit Commitment expires in February 2023 and, subject to earlier spring maturity described in footnote (3), the Extended Revolving Credit Commitment expires in February 2025, but in each instance, amounts outstanding would be classified on the balance sheet as current due to the revolving nature and terms and conditions of the facilities. On May 3, 2021, the Company had no outstanding borrowings under the Revolving Credit Facility and $43 million of outstanding undrawn letters of credit. (2) Interest rates with respect to revolving loans under the Senior Secured Credit Facility at March 31, 2021 were based on, at the Company's option, (a) adjusted London Interbank Offering Rate ("LIBOR") plus an additional margin or (b) JP Morgan Chase Bank, N.A.'s prime rate ("ABR") plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. (3) The maturity date of each of the Extended Revolving Credit Commitment and Extended Term Loan A may spring forward to a date prior to February 2025 as follows: (i) if on or before March 2, 2023, the 4.875% Senior Notes have not been extended, refinanced or replaced to have a maturity date after May 10, 2025 (or are not otherwise discharged, defeased or repaid by March 2, 2023), the maturity date of the Extended Revolving Credit Commitment and Extended Term Loan A Facility will be March 2, 2023; and (ii) if on or before November 9, 2024, the Term Loan B Facility under the Senior Secured Credit Agreement is not extended, refinanced or replaced to have a maturity date after May 10, 2025 (or otherwise repaid prior to November 9, 2024), the maturity date of the Extended Revolving Credit Commitment and Extended Term Loan A Facility will be November 9, 2024. (4) In January and February 2021, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $655 million of outstanding borrowings under the Term Loan B Facility. The Term Loan B Facility provides for quarterly amortization payments totaling 1% per annum of the $1,080 million original principal amount. The interest rate with respect to term loans under the Term Loan B Facility is based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) ABR plus 1.25% (with an ABR floor of 1.75%). On April 28, 2021, the Company used cash on hand to pay down $150 million of the Term Loan B Facility. (5) In January 2021, prior to the effective date of the 2021 Amendments, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $250 million of outstanding borrowings under the Term Loan A Facility. The interest rates with respect to each of the Non-extended Term Loan A and Extended Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. (6) The Company is not required to make amortization payments on the Non-extended Term Loan A. The balance of the Non-Extended Term Loan A is due at maturity on February 8, 2023. (7) The Extended Term Loan A has quarterly amortization payments, commencing with the quarter ending June 30, 2021, equal to a percentage per quarter of the $237 million principal amount of the Extended Term Loan A outstanding on January 27, 2021 (the effective date of the 2021 Amendments), as follows: 0.625% per quarter from June 30, 2021 to March 31, 2022; 1.25% per quarter from June 30, 2022 to March 31, 2023; 1.875% per quarter from June 30, 2023 to March 31, 2024; and 2.50% per quarter for periods ending on or after June 30, 2024, with the balance of the Extended Term Loan A due at maturity on February 8, 2025. (8) Available capacity is subject to maintaining sufficient relocation related assets to collateralize these securitization obligations. (9) As of March 31, 2021, the Company had $200 million of borrowing capacity under the Apple Ridge Funding LLC securitization program leaving $103 million of available capacity. (10) Consists of a £10 million revolving loan facility and a £5 million working capital facility. As of March 31, 2021, the Company had $21 million of borrowing capacity under the Cartus Financing Limited securitization program leaving $18 million of available capacity. |
Schedule of Maturities of Long-term Debt | Year Amount Remaining 2021 (a) $ 12 2022 21 2023 631 2024 33 2025 1,084 _______________ (a) Remaining 2021 includes amortization payments totaling $4 million and $8 million for the Extended Term Loan A and Term Loan B Facility, respectively. The current portion of long-term debt of $17 million shown on the Condensed Consolidated Balance Sheets consists of four quarters of amortization payments totaling $6 million and $11 million for the Extended Term Loan A and Term Loan B Facility, respectively. |
Interest Rate Table for Revolving Credit Facility | Senior Secured Leverage Ratio Applicable LIBOR Margin Applicable ABR Margin Greater than 3.50 to 1.00 2.50% 1.50% Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 2.25% 1.25% Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 2.00% 1.00% Less than 2.00 to 1.00 1.75% 0.75% |
Interest Rate Table for Term Loan A | Senior Secured Leverage Ratio Applicable LIBOR Margin Applicable ABR Margin Greater than 3.50 to 1.00 2.50% 1.50% Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 2.25% 1.25% Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 2.00% 1.00% Less than 2.00 to 1.00 1.75% 0.75% |
Restructuring Costs Restructu_2
Restructuring Costs Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The components of the restructuring charges for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 Personnel-related costs (1) $ 2 $ 3 Facility-related costs (2) 3 9 Total restructuring charges $ 5 $ 12 _______________ (1) Personnel-related costs consist of severance costs provided to employees who have been terminated and duplicate payroll costs during transition. (2) Facility-related costs consist of costs associated with planned facility closures such as contract termination costs, amortization of lease assets that will continue to be incurred under the contract for its remaining term without economic benefit to the Company, accelerated depreciation on asset disposals and other facility and employee relocation related costs. |
Schedule of Restructuring Reserve by Type of Cost | The following is a reconciliation of the beginning and ending reserve balances related to the Facility and Operational Efficiencies Program: Personnel-related costs Facility-related costs Total Balance at December 31, 2020 $ 5 $ 22 $ 27 Restructuring charges (1) 2 3 5 Costs paid or otherwise settled (4) (5) (9) Balance at March 31, 2021 $ 3 $ 20 $ 23 _______________ (1) In addition, the Company incurred an additional $1 million of facility-related costs for lease asset impairments in connection with the Facility and Operational Efficiencies Program during the three months ended March 31, 2021. |
Schedule of Expected Restructuring Costs by Cost Type | The following table shows the total costs currently expected to be incurred by type of cost related to the Facility and Operational Efficiencies Program: Total amount expected to be incurred (1) Amount incurred Total amount remaining to be incurred (1) Personnel-related costs $ 56 $ 52 $ 4 Facility-related costs 109 64 45 Other restructuring costs 1 1 — Total $ 166 $ 117 $ 49 _______________ (1) Facility-related costs include potential lease asset impairments to be incurred under the Facility and Operational Efficiencies Program. |
Schedule of Expected Restructuring Costs by Business Segment | The following table shows the total costs currently expected to be incurred by reportable segment related to the Facility and Operational Efficiencies Program: Total amount expected to be incurred Amount incurred Total amount remaining to be incurred Realogy Franchise Group $ 32 $ 30 $ 2 Realogy Brokerage Group 82 62 20 Realogy Title Group 6 6 — Corporate and Other 46 19 27 Total $ 166 $ 117 $ 49 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | Condensed Consolidated Statement of Changes in Equity for Realogy Holdings Three Months Ended March 31, 2021 Common Stock Additional Accumulated Accumulated Non- Total Shares Amount Balance at December 31, 2020 115.5 $ 1 $ 4,876 $ (3,055) $ (59) $ 4 $ 1,767 Net income — — — 33 — 1 34 Stock-based compensation — — 6 — — — 6 Issuance of shares for vesting of equity awards 1.4 — — — — — — Shares withheld for taxes on equity awards (0.5) — (8) — — — (8) Dividends — — — — — (2) (2) Balance at March 31, 2021 116.4 $ 1 $ 4,874 $ (3,022) $ (59) $ 3 $ 1,797 Three Months Ended March 31, 2020 Common Stock Additional Accumulated Accumulated Non- Total Shares Amount Balance at December 31, 2019 114.4 $ 1 $ 4,842 $ (2,695) $ (56) $ 4 $ 2,096 Net loss — — — (462) — — (462) Other comprehensive loss — — — — (1) — (1) Stock-based compensation — — 6 — — — 6 Issuance of shares for vesting of equity awards 1.4 — — — — — — Shares withheld for taxes on equity awards (0.5) — (4) — — — (4) Dividends — — — — — (1) (1) Balance at March 31, 2020 115.3 $ 1 $ 4,844 $ (3,157) $ (57) $ 3 $ 1,634 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings (loss) per share: Three Months Ended March 31, (in millions, except per share data) 2021 2020 Numerator: Net income (loss) attributable to Realogy Holdings shareholders $ 33 $ (462) Denominator: Weighted average common shares outstanding (denominator for basic earnings (loss) per share calculation) 115.9 114.7 Dilutive effect of stock-based compensation (a)(b) 2.5 — Weighted average common shares outstanding (denominator for diluted earnings (loss) per share calculation) 118.4 114.7 Earnings (loss) per share attributable to Realogy Holdings shareholders: Basic earnings (loss) per share $ 0.28 $ (4.03) Diluted earnings (loss) per share $ 0.28 $ (4.03) _______________ (a) The three months ended March 31, 2021 exclude 5.8 million shares of common stock issuable for incentive equity awards, which include performance share units based on the achievement of target amounts, that are anti-dilutive to the diluted earnings per share computation. (b) The Company was in a net loss position for the three months ended March 31, 2020 and therefore the impact of incentive equity awards were excluded from the computation of dilutive loss per share as the inclusion of such amounts would be anti-dilutive. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenues | Revenues (a) Three Months Ended March 31, 2021 2020 Realogy Franchise Group $ 254 $ 220 Realogy Brokerage Group 1,171 869 Realogy Title Group 201 137 Corporate and Other (b) (79) (58) Total Company $ 1,547 $ 1,168 _______________ (a) Transactions between segments are eliminated in consolidation. Revenues for the Realogy Franchise Group include intercompany royalties and marketing fees paid by Realogy Brokerage Group of $79 million and $58 million for the three months ended March 31, 2021 and 2020, respectively. Such amounts are eliminated through the Corporate and Other line. (b) Includes the elimination of transactions between segments. |
Operating EBITDA | Operating EBITDA Three Months Ended March 31, 2021 2020 Realogy Franchise Group $ 141 $ 96 Realogy Brokerage Group (5) (51) Realogy Title Group 61 12 Corporate and Other (a) (35) (25) Total Company 162 32 Less: Depreciation and amortization 51 45 Interest expense, net 38 101 Income tax expense (benefit) 17 (141) Restructuring costs, net (b) 5 12 Impairments (c) 1 477 Loss on the early extinguishment of debt (d) 17 — Net income (loss) attributable to Realogy Holdings and Realogy Group $ 33 $ (462) _______________ (a) Includes the elimination of transactions between segments. (b) The three months ended March 31, 2021 includes restructuring charges of $2 million at Realogy Franchise Group, $2 million at Realogy Brokerage Group and $1 million at Corporate and Other. The three months ended March 31, 2020 includes restructuring charges of $2 million at Realogy Franchise Group, $9 million at Realogy Brokerage Group and $1 million at Realogy Title Group. (c) Impairments for the three months ended March 31, 2021 relate to lease asset impairments. Non-cash impairments for the three months ended March 31, 2020 include: • a goodwill impairment charge of $413 million related to Realogy Brokerage Group; • an impairment charge of $30 million related to Realogy Franchise Group's trademarks; • $30 million of impairment charges during the three months ended March 31, 2020 (while Cartus Relocation Services was held for sale) to reduce the net assets to the estimated proceeds; and • other asset impairments of $4 million primarily related to lease asset impairments. (d) Loss on the early extinguishment of debt is recorded in Corporate and Other. |
Basis Of Presentation Financial
Basis Of Presentation Financial Instruments - Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Liabilities Rollforward [Roll Forward] | ||
Fair value of contingent consideration at December 31, 2020 | $ 3 | |
Additions: contingent consideration related to acquisitions completed during the period | 1 | |
Reductions: payments of contingent consideration | (1) | |
Changes in fair value (reflected in general and administrative expenses) | 0 | |
Fair value of contingent consideration at March 31, 2021 | 3 | |
Fair Value, Measurements, Recurring | Deferred Compensation Plan Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (included in other non-current assets) | 1 | $ 1 |
Fair Value, Measurements, Recurring | Deferred Compensation Plan Assets | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (included in other non-current assets) | 1 | 1 |
Fair Value, Measurements, Recurring | Deferred Compensation Plan Assets | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (included in other non-current assets) | 0 | 0 |
Fair Value, Measurements, Recurring | Deferred Compensation Plan Assets | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (included in other non-current assets) | 0 | 0 |
Fair Value, Measurements, Recurring | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps (included in other non-current liabilities) | 63 | 81 |
Fair Value, Measurements, Recurring | Interest Rate Swap | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps (included in other non-current liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Interest Rate Swap | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps (included in other non-current liabilities) | 63 | 81 |
Fair Value, Measurements, Recurring | Interest Rate Swap | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps (included in other non-current liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Contingent Consideration for Acquisitions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) | 3 | 3 |
Fair Value, Measurements, Recurring | Contingent Consideration for Acquisitions | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Contingent Consideration for Acquisitions | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Contingent Consideration for Acquisitions | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) | $ 3 | $ 3 |
Basis Of Presentation Financi_2
Basis Of Presentation Financial Instruments - Fair Value Indebtedness Table (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Feb. 05, 2021 | Jan. 27, 2021 | Dec. 31, 2020 | Feb. 28, 2018 | ||
Long-term debt principal amount | $ 3,231 | ||||||
Secured Debt | Term Loan B | |||||||
Long-term debt principal amount | 390 | [1] | $ 1,048 | $ 1,080 | |||
Long-term debt fair value | [2] | 385 | 1,032 | ||||
Secured Debt | Non-extended Term Loan A | |||||||
Long-term debt principal amount | 197 | [3],[4] | 684 | ||||
Long-term debt fair value | [2] | 194 | 671 | ||||
Secured Debt | Extended Term Loan A | |||||||
Long-term debt principal amount | 237 | [3],[5] | $ 237 | 0 | |||
Long-term debt fair value | [2] | 234 | 0 | ||||
Secured Debt | 7.625% Senior Secured Second Lien Notes | |||||||
Long-term debt principal amount | 550 | 550 | |||||
Long-term debt fair value | [2] | 598 | 595 | ||||
Senior Notes | 4.875% Senior Notes | |||||||
Long-term debt principal amount | 407 | 407 | |||||
Long-term debt fair value | [2] | 419 | 415 | ||||
Senior Notes | 9.375% Senior Notes | |||||||
Long-term debt principal amount | 550 | 550 | |||||
Long-term debt fair value | [2] | 609 | 609 | ||||
Senior Notes | 5.75% Senior Notes | |||||||
Long-term debt principal amount | 900 | $ 900 | 0 | ||||
Long-term debt fair value | [2] | 889 | 0 | ||||
Line of Credit | Non-extended Revolving Credit Commitment | |||||||
Line of credit facility outstanding | 0 | [6],[7] | 0 | ||||
Line of credit facility fair value | [2] | 0 | 0 | ||||
Line of Credit | Extended Revolving Credit Commitment | |||||||
Line of credit facility outstanding | 0 | [6],[7],[8] | 0 | ||||
Line of credit facility fair value | [2] | $ 0 | $ 0 | ||||
[1] | In January and February 2021, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $655 million of outstanding borrowings under the Term Loan B Facility. The Term Loan B Facility provides for quarterly amortization payments totaling 1% per annum of the $1,080 million original principal amount. The interest rate with respect to term loans under the Term Loan B Facility is based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) ABR plus 1.25% (with an ABR floor of 1.75%). On April 28, 2021, the Company used cash on hand to pay down $150 million of the Term Loan B Facility. | ||||||
[2] | The fair value of the Company's indebtedness is categorized as Level II. | ||||||
[3] | In January 2021, prior to the effective date of the 2021 Amendments, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $250 million of outstanding borrowings under the Term Loan A Facility. The interest rates with respect to each of the Non-extended Term Loan A and Extended Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. | ||||||
[4] | The Company is not required to make amortization payments on the Non-extended Term Loan A. The balance of the Non-Extended Term Loan A is due at maturity on February 8, 2023. | ||||||
[5] | The Extended Term Loan A has quarterly amortization payments, commencing with the quarter ending June 30, 2021, equal to a percentage per quarter of the $237 million principal amount of the Extended Term Loan A outstanding on January 27, 2021 (the effective date of the 2021 Amendments), as follows: 0.625% per quarter from June 30, 2021 to March 31, 2022; 1.25% per quarter from June 30, 2022 to March 31, 2023; 1.875% per quarter from June 30, 2023 to March 31, 2024; and 2.50% per quarter for periods ending on or after June 30, 2024, with the balance of the Extended Term Loan A due at maturity on February 8, 2025. | ||||||
[6] | Interest rates with respect to revolving loans under the Senior Secured Credit Facility at March 31, 2021 were based on, at the Company's option, (a) adjusted London Interbank Offering Rate ("LIBOR") plus an additional margin or (b) JP Morgan Chase Bank, N.A.'s prime rate ("ABR") plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. | ||||||
[7] | The available capacity under the Non-extended Revolving Credit Commitment is $477 million, while the available capacity under the Extended Revolving Credit Commitment is $948 million. As of March 31, 2021, there were no outstanding borrowings under either the Non-extended Revolving Credit Commitment or Extended Revolving Credit Commitment and $43 million of outstanding undrawn letters of credit. The Non-extended Revolving Credit Commitment expires in February 2023 and, subject to earlier spring maturity described in footnote (3), the Extended Revolving Credit Commitment expires in February 2025, but in each instance, amounts outstanding would be classified on the balance sheet as current due to the revolving nature and terms and conditions of the facilities. On May 3, 2021, the Company had no outstanding borrowings under the Revolving Credit Facility and $43 million of outstanding undrawn letters of credit | ||||||
[8] | The maturity date of each of the Extended Revolving Credit Commitment and Extended Term Loan A may spring forward to a date prior to February 2025 as follows: (i) if on or before March 2, 2023, the 4.875% Senior Notes have not been extended, refinanced or replaced to have a maturity date after May 10, 2025 (or are not otherwise discharged, defeased or repaid by March 2, 2023), the maturity date of the Extended Revolving Credit Commitment and Extended Term Loan A Facility will be March 2, 2023; and (ii) if on or before November 9, 2024, the Term Loan B Facility under the Senior Secured Credit Agreement is not extended, refinanced or replaced to have a maturity date after May 10, 2025 (or otherwise repaid prior to November 9, 2024), the maturity date of the Extended Revolving Credit Commitment and Extended Term Loan A Facility will be November 9, 2024 |
Basis Of Presentation Equity Me
Basis Of Presentation Equity Method Investments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings of unconsolidated entities | $ (31) | $ (9) | |
Dividends received from unconsolidated entities | 31 | 1 | |
Guaranteed Rate Affinity | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of equity method investments | 90 | $ 90 | |
Equity in earnings of unconsolidated entities | (30) | (9) | |
Dividends received from unconsolidated entities | 30 | 0 | |
Other Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of equity method investments | 12 | $ 10 | |
Equity in earnings of unconsolidated entities | (1) | 0 | |
Dividends received from unconsolidated entities | $ 1 | $ 1 |
Basis Of Presentation Income Ta
Basis Of Presentation Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 17 | $ (141) |
Basis Of Presentation Derivativ
Basis Of Presentation Derivative Instruments (Details) - Interest Rate Swap - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 1,000 | ||
Not Designated as Hedging Instrument | Interest expense | |||
Derivative [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (13) | $ 51 | |
Not Designated as Hedging Instrument | Other non-current liabilities | |||
Derivative [Line Items] | |||
Interest rate swap contract - other current and non-current liabilities | 63 | $ 81 | |
November 2017 | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 450 | ||
August 2020 | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 400 | ||
November 2022 | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 150 |
Basis of Presentation Restricte
Basis of Presentation Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Restricted Cash [Abstract] | ||
Restricted cash | $ 5 | $ 3 |
Basis Of Presentation Revenue R
Basis Of Presentation Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | |||
Revenues | [1] | $ 1,547 | $ 1,168 |
Gross commission income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [2] | 1,154 | 850 |
Service revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [3] | 249 | 202 |
Franchise fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [4] | 105 | 71 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [5] | 39 | 45 |
Realogy Franchise Group | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [1] | 254 | 220 |
Realogy Franchise Group | Gross commission income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [2] | 0 | 0 |
Realogy Franchise Group | Service revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [3] | 47 | 64 |
Realogy Franchise Group | Franchise fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [4] | 181 | 127 |
Realogy Franchise Group | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [5] | 26 | 29 |
Realogy Brokerage Group | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [1] | 1,171 | 869 |
Realogy Brokerage Group | Gross commission income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [2] | 1,154 | 850 |
Realogy Brokerage Group | Service revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [3] | 7 | 5 |
Realogy Brokerage Group | Franchise fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [4] | 0 | 0 |
Realogy Brokerage Group | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [5] | 10 | 14 |
Realogy Title Group | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [1] | 201 | 137 |
Realogy Title Group | Gross commission income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [2] | 0 | 0 |
Realogy Title Group | Service revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [3] | 195 | 133 |
Realogy Title Group | Franchise fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [4] | 0 | 0 |
Realogy Title Group | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [5] | 6 | 4 |
Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [1],[6] | (79) | (58) |
Corporate and Other | Gross commission income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [2] | 0 | 0 |
Corporate and Other | Service revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [3] | 0 | 0 |
Corporate and Other | Franchise fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [4] | (76) | (56) |
Corporate and Other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | [5] | $ (3) | $ (2) |
[1] | Transactions between segments are eliminated in consolidation. Revenues for the Realogy Franchise Group include intercompany royalties and marketing fees paid by Realogy Brokerage Group of $79 million and $58 million for the three months ended March 31, 2021 and 2020, respectively. Such amounts are eliminated through the Corporate and Other line. | ||
[2] | Gross commission income at Realogy Brokerage Group is recognized at a point in time at the closing of a homesale transaction | ||
[3] | Service revenue primarily consists of title and escrow fees at Realogy Title Group and are recognized at a point in time at the closing of a homesale transaction. Service revenue at Realogy Franchise Group includes relocation fees, which are recognized as revenue when or as the related performance obligation is satisfied dependent on the type of service performed, and fees related to leads and related services, which are recognized at a point in time at the closing of a homesale transaction or at the completion of the related service. | ||
[4] | Franchise fees at Realogy Franchise Group primarily include domestic royalties which are recognized at a point in time when the underlying franchisee revenue is earned (upon close of the homesale transaction). | ||
[5] | Other revenue is comprised of brand marketing funds received from franchisees at Realogy Franchise Group and other miscellaneous revenues across all of the business segments. | ||
[6] | Includes the elimination of transactions between segments. |
Basis Of Presentation Revenue_2
Basis Of Presentation Revenue Recognition - Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Jan. 01, 2021 | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue | $ 83 | $ 82 | |
Deferred Revenue, Additions | 44 | ||
Deferred Revenue, Revenue Recognized | (43) | ||
Realogy Franchise Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue | 70 | 70 | |
Deferred Revenue, Additions | 42 | ||
Deferred Revenue, Revenue Recognized | (42) | ||
Realogy Brokerage Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue | 13 | 12 | |
Deferred Revenue, Additions | 2 | ||
Deferred Revenue, Revenue Recognized | $ (1) | ||
Minimum | Realogy Franchise Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Outsourcing Management Fees Period | 3 months | ||
Minimum | Realogy Brokerage Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
New Development Period | 18 months | ||
Maximum | Realogy Franchise Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Outsourcing Management Fees Period | 6 months | ||
Maximum | Realogy Brokerage Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
New Development Period | 24 months | ||
International Franchise Rights | Realogy Franchise Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 25 years | ||
Area Development Fees | Realogy Franchise Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue | [1] | $ 41 | 43 |
Deferred Revenue, Additions | [1] | 1 | |
Deferred Revenue, Revenue Recognized | [1] | (3) | |
Brand Marketing Fees | Realogy Franchise Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue | [2] | 15 | 14 |
Deferred Revenue, Additions | [2] | 24 | |
Deferred Revenue, Revenue Recognized | [2] | (23) | |
Outsourcing Management Fees | Realogy Franchise Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue | [3] | 3 | 3 |
Deferred Revenue, Additions | [3] | 8 | |
Deferred Revenue, Revenue Recognized | [3] | (8) | |
Deferred Income, Other | Realogy Franchise Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue | 11 | 10 | |
Deferred Revenue, Additions | 9 | ||
Deferred Revenue, Revenue Recognized | (8) | ||
Deferred Income, Other | Realogy Brokerage Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue | 4 | 3 | |
Deferred Revenue, Additions | 2 | ||
Deferred Revenue, Revenue Recognized | (1) | ||
New Development Business | Realogy Brokerage Group | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue | [4] | 9 | $ 9 |
Deferred Revenue, Additions | [4] | 0 | |
Deferred Revenue, Revenue Recognized | [4] | $ 0 | |
[1] | 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 Realogy’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. | ||
[2] | Revenues recognized include intercompany marketing fees paid by Realogy Brokerage Group. | ||
[3] | The Company earns revenues from outsourcing management fees charged to clients that may cover several of the relocation services listed above, 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 phase of the move that the fee covers, which is typically 3 to 6 months depending on the move type. | ||
[4] | New development closings generally have a development period of between 18 and 24 months from contracted date to closing. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lessee Disclosure - Supplemental Cash Flow Information [Abstract] | ||
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 1 | $ 4 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021USD ($)real_estate_brokerage_operations | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($) | ||
Goodwill [Roll Forward] | |||||||
Balance at December 31, 2020 | $ 2,910 | ||||||
Goodwill, Acquired During Period | [1] | 2 | |||||
Goodwill, Written off Related to Sale of Business Unit | [2] | (3) | |||||
Balance at March 31, 2021 | 2,909 | $ 2,910 | |||||
Accumulated Impairment Losses | [3] | 2,579 | |||||
Impairment Loss | 540 | $ 253 | $ 1,279 | $ 507 | |||
Realogy Franchise Group | |||||||
Goodwill [Roll Forward] | |||||||
Balance at December 31, 2020 | 2,509 | ||||||
Goodwill, Acquired During Period | [1] | 0 | |||||
Goodwill, Written off Related to Sale of Business Unit | [2] | (3) | |||||
Balance at March 31, 2021 | 2,506 | 2,509 | |||||
Accumulated Impairment Losses | [3] | 1,447 | |||||
Realogy Brokerage Group | |||||||
Goodwill [Roll Forward] | |||||||
Balance at December 31, 2020 | 245 | ||||||
Goodwill, Acquired During Period | [1] | 0 | |||||
Goodwill, Written off Related to Sale of Business Unit | [2] | 0 | |||||
Balance at March 31, 2021 | 245 | 245 | |||||
Accumulated Impairment Losses | [3] | 808 | |||||
Impairment Loss | $ 413 | ||||||
Realogy Title Group | |||||||
Goodwill [Roll Forward] | |||||||
Balance at December 31, 2020 | 156 | ||||||
Goodwill, Acquired During Period | [1] | 2 | |||||
Goodwill, Written off Related to Sale of Business Unit | [2] | 0 | |||||
Balance at March 31, 2021 | 158 | $ 156 | |||||
Accumulated Impairment Losses | [3] | $ 324 | |||||
Number of Businesses Acquired | real_estate_brokerage_operations | 1 | ||||||
[1] | Goodwill acquired during the three months ended March 31, 2021 relates to the acquisition of one title and settlement operation. | ||||||
[2] | Goodwill reduction during the three months ended March 31, 2021 relates to the sale of a relocation related business. | ||||||
[3] | Includes impairment charges which reduced goodwill by $540 million during 2020, $253 million during 2019, $1,279 million during 2008 and $507 million during 2007. |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Carrying amount of total other intangibles | $ 589 | $ 588 | |
Accumulated Amortization | 406 | 400 | |
Net carrying amount of finite-lived and indefinite-lived intangible assets | 183 | 188 | |
Indefinite life—Trademarks (b) | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of indefinite-lived intangible assets | [1] | 685 | 685 |
Indefinite life—Title plant shares (e) | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of indefinite-lived intangible assets | [2] | 20 | 20 |
Amortizable—Franchise agreements (a) | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of finite-lived intangible assets | [3] | 2,010 | 2,010 |
Accumulated Amortization | [3] | 939 | 922 |
Net carrying amount of finite-lived intangible assets | [3] | 1,071 | 1,088 |
Amortizable—License agreements (c) | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of finite-lived intangible assets | [4] | 45 | 45 |
Accumulated Amortization | [4] | 13 | 13 |
Net carrying amount of finite-lived intangible assets | [4] | $ 32 | 32 |
Amortization period | 50 years | ||
Amortizable—Customer relationships (d) | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of finite-lived intangible assets | [5] | $ 510 | 509 |
Accumulated Amortization | [5] | 382 | 376 |
Net carrying amount of finite-lived intangible assets | [5] | 128 | 133 |
Amortizable—Other (f) | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of finite-lived intangible assets | [6] | 14 | 14 |
Accumulated Amortization | [6] | 11 | 11 |
Net carrying amount of finite-lived intangible assets | [6] | $ 3 | $ 3 |
Realogy Franchise Group | Amortizable—Franchise agreements (a) | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period | 30 years | ||
Minimum | Amortizable—Customer relationships (d) | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period | 2 years | ||
Minimum | Amortizable—Other (f) | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period | 5 years | ||
Maximum | Amortizable—Customer relationships (d) | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period | 20 years | ||
Maximum | Amortizable—Other (f) | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period | 10 years | ||
[1] | Primarily related to real estate franchise brands which are expected to generate future cash flows for an indefinite period of time. | ||
[2] | Ownership in a title plant is required to transact title insurance in certain states. The Company expects to generate future cash flows for an indefinite period of time. | ||
[3] | Generally amortized over a period of 30 years. | ||
[4] | Relates to the Sotheby’s International Realty ® and Better Homes and Gardens ® Real Estate agreements which are being amortized over 50 years (the contractual term of the license agreements). | ||
[5] | Relates to the customer relationships at Realogy Franchise Group, Realogy Title Group and Realogy Brokerage Group. These relationships are being amortized over a period of 2 to 20 years. | ||
[6] | Consists of covenants not to compete which are amortized over their contract lives and other intangibles which are generally amortized over periods ranging from 5 to 10 years. |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)Years | Mar. 31, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset amortization expense | $ 23 | $ 19 |
The number of succeeding years for which amortization expense is disclosed | Years | 4 | |
Amortization expense for the remainder of the Year | $ 68 | |
Amortization expense for Year One | 90 | |
Amortization expense for Year Two | 89 | |
Amortization expense for Year Three | 89 | |
Amortization expense for Year Four | 89 | |
Amortization expense Thereafter | 809 | |
Amortizable—Franchise agreements (a) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset amortization expense | 17 | 17 |
Amortizable—Customer relationships (d) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset amortization expense | 6 | 1 |
Amortizable—Other (f) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset amortization expense | $ 0 | $ 1 |
Accrued Expenses And Other Cu_3
Accrued Expenses And Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued payroll and related employee costs | $ 127 | $ 239 |
Advances from clients | 58 | 65 |
Accrued volume incentives | 39 | 46 |
Accrued commissions | 47 | 48 |
Restructuring accruals | 14 | 16 |
Deferred income | 50 | 46 |
Accrued interest | 58 | 18 |
Current portion of finance lease liabilities | 12 | 13 |
Due to former parent | 19 | 19 |
Other | 99 | 90 |
Total accrued expenses and other current liabilities | $ 523 | $ 600 |
Short And Long-Term Debt Schedu
Short And Long-Term Debt Schedule of Total Indebtedness (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Feb. 05, 2021 | Dec. 31, 2020 | |
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Outstanding borrowings, long-term debt | $ 3,207 | |||
Total Short-Term & Long-Term Debt | 3,207 | $ 3,207 | ||
Securitization obligations | 100 | 106 | ||
Term Loan B | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Debt Instrument, Repurchase Amount | $ (655) | |||
Secured Debt | Term Loan B | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Outstanding borrowings, long-term debt | 386 | [1] | 1,036 | |
Secured Debt | Term Loan A | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Debt Instrument, Repurchase Amount | $ (250) | |||
Secured Debt | Non-extended Term Loan A | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Outstanding borrowings, long-term debt | 196 | [2],[3] | 681 | |
Secured Debt | Extended Term Loan A | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Outstanding borrowings, long-term debt | 236 | [2],[4] | 0 | |
Secured Debt | 7.625% Senior Secured Second Lien Notes | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Outstanding borrowings, long-term debt | 541 | 540 | ||
Senior Notes | 4.875% Senior Notes | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Outstanding borrowings, long-term debt | 406 | 406 | ||
Senior Notes | 9.375% Senior Notes | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Outstanding borrowings, long-term debt | 544 | 544 | ||
Senior Notes | 5.75% Senior Notes | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Outstanding borrowings, long-term debt | 898 | 0 | ||
Line of Credit | Non-extended Revolving Credit Commitment | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Line of credit facility outstanding | 0 | [5],[6] | 0 | |
Line of Credit | Extended Revolving Credit Commitment | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Line of credit facility outstanding | $ 0 | [5],[6],[7] | $ 0 | |
[1] | In January and February 2021, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $655 million of outstanding borrowings under the Term Loan B Facility. The Term Loan B Facility provides for quarterly amortization payments totaling 1% per annum of the $1,080 million original principal amount. The interest rate with respect to term loans under the Term Loan B Facility is based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) ABR plus 1.25% (with an ABR floor of 1.75%). On April 28, 2021, the Company used cash on hand to pay down $150 million of the Term Loan B Facility. | |||
[2] | In January 2021, prior to the effective date of the 2021 Amendments, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $250 million of outstanding borrowings under the Term Loan A Facility. The interest rates with respect to each of the Non-extended Term Loan A and Extended Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. | |||
[3] | The Company is not required to make amortization payments on the Non-extended Term Loan A. The balance of the Non-Extended Term Loan A is due at maturity on February 8, 2023. | |||
[4] | The Extended Term Loan A has quarterly amortization payments, commencing with the quarter ending June 30, 2021, equal to a percentage per quarter of the $237 million principal amount of the Extended Term Loan A outstanding on January 27, 2021 (the effective date of the 2021 Amendments), as follows: 0.625% per quarter from June 30, 2021 to March 31, 2022; 1.25% per quarter from June 30, 2022 to March 31, 2023; 1.875% per quarter from June 30, 2023 to March 31, 2024; and 2.50% per quarter for periods ending on or after June 30, 2024, with the balance of the Extended Term Loan A due at maturity on February 8, 2025. | |||
[5] | Interest rates with respect to revolving loans under the Senior Secured Credit Facility at March 31, 2021 were based on, at the Company's option, (a) adjusted London Interbank Offering Rate ("LIBOR") plus an additional margin or (b) JP Morgan Chase Bank, N.A.'s prime rate ("ABR") plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. | |||
[6] | The available capacity under the Non-extended Revolving Credit Commitment is $477 million, while the available capacity under the Extended Revolving Credit Commitment is $948 million. As of March 31, 2021, there were no outstanding borrowings under either the Non-extended Revolving Credit Commitment or Extended Revolving Credit Commitment and $43 million of outstanding undrawn letters of credit. The Non-extended Revolving Credit Commitment expires in February 2023 and, subject to earlier spring maturity described in footnote (3), the Extended Revolving Credit Commitment expires in February 2025, but in each instance, amounts outstanding would be classified on the balance sheet as current due to the revolving nature and terms and conditions of the facilities. On May 3, 2021, the Company had no outstanding borrowings under the Revolving Credit Facility and $43 million of outstanding undrawn letters of credit | |||
[7] | The maturity date of each of the Extended Revolving Credit Commitment and Extended Term Loan A may spring forward to a date prior to February 2025 as follows: (i) if on or before March 2, 2023, the 4.875% Senior Notes have not been extended, refinanced or replaced to have a maturity date after May 10, 2025 (or are not otherwise discharged, defeased or repaid by March 2, 2023), the maturity date of the Extended Revolving Credit Commitment and Extended Term Loan A Facility will be March 2, 2023; and (ii) if on or before November 9, 2024, the Term Loan B Facility under the Senior Secured Credit Agreement is not extended, refinanced or replaced to have a maturity date after May 10, 2025 (or otherwise repaid prior to November 9, 2024), the maturity date of the Extended Revolving Credit Commitment and Extended Term Loan A Facility will be November 9, 2024 |
Short And Long-Term Debt Indebt
Short And Long-Term Debt Indebtedness Table (Details) - USD ($) | 3 Months Ended | |||||||||
Mar. 31, 2021 | May 03, 2021 | Apr. 28, 2021 | Feb. 05, 2021 | Jan. 27, 2021 | Jan. 11, 2021 | Dec. 31, 2020 | Feb. 28, 2018 | |||
Principal Amount | ||||||||||
Long-term debt principal amount | $ 3,231,000,000 | |||||||||
Securitization obligations | 100,000,000 | $ 106,000,000 | ||||||||
Unamortized Discount (Premium) and Debt Issuance Costs | ||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 24,000,000 | |||||||||
Net Amount | ||||||||||
Outstanding borrowings, long-term debt | 3,207,000,000 | |||||||||
Securitization obligations | $ 100,000,000 | 106,000,000 | ||||||||
LIBOR | ||||||||||
Net Amount | ||||||||||
Description of variable interest rate basis | LIBOR | |||||||||
ABR | ||||||||||
Net Amount | ||||||||||
Description of variable interest rate basis | ABR | |||||||||
Term Loan B | ||||||||||
Net Amount | ||||||||||
Debt Instrument, Repurchase Amount | $ (655,000,000) | |||||||||
Term Loan B | LIBOR | ||||||||||
Net Amount | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||
Debt Instrument, Basis Spread on Variable Rate, Floor | 0.75% | |||||||||
Term Loan B | ABR | ||||||||||
Net Amount | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||||
Debt Instrument, Basis Spread on Variable Rate, Floor | 1.75% | |||||||||
Secured Debt | Term Loan B | ||||||||||
Principal Amount | ||||||||||
Long-term debt principal amount | $ 390,000,000 | [1] | 1,048,000,000 | $ 1,080,000,000 | ||||||
Unamortized Discount (Premium) and Debt Issuance Costs | ||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | [1] | 4,000,000 | ||||||||
Net Amount | ||||||||||
Outstanding borrowings, long-term debt | $ 386,000,000 | [1] | 1,036,000,000 | |||||||
Annual percentage of original principal amount for quarterly amortization payments | 1.00% | |||||||||
Secured Debt | Non-extended Term Loan A | ||||||||||
Principal Amount | ||||||||||
Long-term debt principal amount | $ 197,000,000 | [2],[3] | 684,000,000 | |||||||
Unamortized Discount (Premium) and Debt Issuance Costs | ||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | [2],[3] | 1,000,000 | ||||||||
Net Amount | ||||||||||
Outstanding borrowings, long-term debt | 196,000,000 | [2],[3] | 681,000,000 | |||||||
Secured Debt | Extended Term Loan A | ||||||||||
Principal Amount | ||||||||||
Long-term debt principal amount | 237,000,000 | [2],[4] | $ 237,000,000 | 0 | ||||||
Unamortized Discount (Premium) and Debt Issuance Costs | ||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | [2],[4] | 1,000,000 | ||||||||
Net Amount | ||||||||||
Outstanding borrowings, long-term debt | $ 236,000,000 | [2],[4] | 0 | |||||||
Secured Debt | Extended Term Loan A | June 2021 to March 2022 | ||||||||||
Net Amount | ||||||||||
Quarterly percentage of original principal amount for quarterly amortization payments | 0.625% | |||||||||
Secured Debt | Extended Term Loan A | June 2022 to March 2023 | ||||||||||
Net Amount | ||||||||||
Quarterly percentage of original principal amount for quarterly amortization payments | 1.25% | |||||||||
Secured Debt | Extended Term Loan A | June 2023 to March 2024 | ||||||||||
Net Amount | ||||||||||
Quarterly percentage of original principal amount for quarterly amortization payments | 1.875% | |||||||||
Secured Debt | Extended Term Loan A | June 2024 and thereafter | ||||||||||
Net Amount | ||||||||||
Quarterly percentage of original principal amount for quarterly amortization payments | 2.50% | |||||||||
Secured Debt | 7.625% Senior Secured Second Lien Notes | ||||||||||
Principal Amount | ||||||||||
Long-term debt principal amount | $ 550,000,000 | 550,000,000 | ||||||||
Unamortized Discount (Premium) and Debt Issuance Costs | ||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 9,000,000 | |||||||||
Net Amount | ||||||||||
Outstanding borrowings, long-term debt | $ 541,000,000 | 540,000,000 | ||||||||
Interest Rate | 7.625% | |||||||||
Secured Debt | Term Loan A | ||||||||||
Principal Amount | ||||||||||
Long-term debt principal amount | $ 434,000,000 | $ 750,000,000 | ||||||||
Net Amount | ||||||||||
Debt Instrument, Repurchase Amount | (250,000,000) | |||||||||
Secured Debt | Less than 2.00 to 1.00 | Term Loan A | LIBOR | ||||||||||
Net Amount | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||||
Secured Debt | Less than 2.00 to 1.00 | Term Loan A | ABR | ||||||||||
Net Amount | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||||
Senior Notes | 4.875% Senior Notes | ||||||||||
Principal Amount | ||||||||||
Long-term debt principal amount | $ 407,000,000 | 407,000,000 | ||||||||
Unamortized Discount (Premium) and Debt Issuance Costs | ||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 1,000,000 | |||||||||
Net Amount | ||||||||||
Outstanding borrowings, long-term debt | $ 406,000,000 | 406,000,000 | ||||||||
Interest Rate | 4.875% | |||||||||
Senior Notes | 9.375% Senior Notes | ||||||||||
Principal Amount | ||||||||||
Long-term debt principal amount | $ 550,000,000 | 550,000,000 | ||||||||
Unamortized Discount (Premium) and Debt Issuance Costs | ||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 6,000,000 | |||||||||
Net Amount | ||||||||||
Outstanding borrowings, long-term debt | $ 544,000,000 | 544,000,000 | ||||||||
Interest Rate | 9.375% | |||||||||
Senior Notes | 5.75% Senior Notes | ||||||||||
Principal Amount | ||||||||||
Long-term debt principal amount | $ 900,000,000 | $ 900,000,000 | 0 | |||||||
Unamortized Discount (Premium) and Debt Issuance Costs | ||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 2,000,000 | |||||||||
Net Amount | ||||||||||
Outstanding borrowings, long-term debt | $ 898,000,000 | 0 | ||||||||
Interest Rate | 5.75% | |||||||||
Line of Credit | Non-extended Revolving Credit Commitment | ||||||||||
Principal Amount | ||||||||||
Line of credit facility outstanding | $ 0 | [5],[6] | 0 | |||||||
Net Amount | ||||||||||
Outstanding borrowings, short-term debt, line of credit facility | 0 | [5],[6] | 0 | |||||||
Total capacity, short-term debt, line of credit facility | [5] | 477,000,000 | ||||||||
Line of credit facility outstanding | 0 | [5],[6] | 0 | |||||||
Line of Credit | Extended Revolving Credit Commitment | ||||||||||
Principal Amount | ||||||||||
Line of credit facility outstanding | 0 | [5],[6],[7] | 0 | |||||||
Net Amount | ||||||||||
Outstanding borrowings, short-term debt, line of credit facility | 0 | [5],[6],[7] | 0 | |||||||
Total capacity, short-term debt, line of credit facility | 948,000,000 | $ 948,000,000 | ||||||||
Line of credit facility outstanding | 0 | [5],[6],[7] | 0 | |||||||
Line of Credit | Revolving Credit Facility | ||||||||||
Net Amount | ||||||||||
Total capacity, short-term debt, line of credit facility | $ 1,425,000,000 | |||||||||
Line of Credit | Less than 2.00 to 1.00 | Revolving Credit Facility | LIBOR | ||||||||||
Net Amount | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||||
Line of Credit | Less than 2.00 to 1.00 | Revolving Credit Facility | ABR | ||||||||||
Net Amount | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||||
Letter of Credit | Revolving Credit Facility | ||||||||||
Principal Amount | ||||||||||
Line of credit facility outstanding | $ 43,000,000 | |||||||||
Net Amount | ||||||||||
Outstanding borrowings, short-term debt, line of credit facility | 43,000,000 | |||||||||
Line of credit facility outstanding | 43,000,000 | |||||||||
Securitization obligation | ||||||||||
Unamortized Discount (Premium) and Debt Issuance Costs | ||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 0 | |||||||||
Securitization obligation | Apple Ridge Funding LLC | ||||||||||
Principal Amount | ||||||||||
Securitization obligations | 97,000,000 | [8],[9] | 102,000,000 | |||||||
Net Amount | ||||||||||
Securitization obligations | 97,000,000 | [8],[9] | 102,000,000 | |||||||
Total capacity, securitization obligations | 200,000,000 | |||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 103,000,000 | |||||||||
Securitization obligation | Cartus Financing Limited | ||||||||||
Principal Amount | ||||||||||
Securitization obligations | 3,000,000 | [9],[10] | 4,000,000 | |||||||
Net Amount | ||||||||||
Securitization obligations | 3,000,000 | [9],[10] | $ 4,000,000 | |||||||
Total capacity, securitization obligations | 21,000,000 | |||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 18,000,000 | |||||||||
Subsequent Event | Term Loan B | ||||||||||
Net Amount | ||||||||||
Debt Instrument, Repurchase Amount | $ (150) | |||||||||
Subsequent Event | Line of Credit | Revolving Credit Facility | ||||||||||
Principal Amount | ||||||||||
Line of credit facility outstanding | [5] | $ 0 | ||||||||
Net Amount | ||||||||||
Outstanding borrowings, short-term debt, line of credit facility | [5] | 0 | ||||||||
Line of credit facility outstanding | [5] | 0 | ||||||||
Subsequent Event | Letter of Credit | Revolving Credit Facility | ||||||||||
Principal Amount | ||||||||||
Line of credit facility outstanding | 43,000,000 | |||||||||
Net Amount | ||||||||||
Outstanding borrowings, short-term debt, line of credit facility | 43,000,000 | |||||||||
Line of credit facility outstanding | $ 43,000,000 | |||||||||
[1] | In January and February 2021, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $655 million of outstanding borrowings under the Term Loan B Facility. The Term Loan B Facility provides for quarterly amortization payments totaling 1% per annum of the $1,080 million original principal amount. The interest rate with respect to term loans under the Term Loan B Facility is based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) ABR plus 1.25% (with an ABR floor of 1.75%). On April 28, 2021, the Company used cash on hand to pay down $150 million of the Term Loan B Facility. | |||||||||
[2] | In January 2021, prior to the effective date of the 2021 Amendments, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $250 million of outstanding borrowings under the Term Loan A Facility. The interest rates with respect to each of the Non-extended Term Loan A and Extended Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. | |||||||||
[3] | The Company is not required to make amortization payments on the Non-extended Term Loan A. The balance of the Non-Extended Term Loan A is due at maturity on February 8, 2023. | |||||||||
[4] | The Extended Term Loan A has quarterly amortization payments, commencing with the quarter ending June 30, 2021, equal to a percentage per quarter of the $237 million principal amount of the Extended Term Loan A outstanding on January 27, 2021 (the effective date of the 2021 Amendments), as follows: 0.625% per quarter from June 30, 2021 to March 31, 2022; 1.25% per quarter from June 30, 2022 to March 31, 2023; 1.875% per quarter from June 30, 2023 to March 31, 2024; and 2.50% per quarter for periods ending on or after June 30, 2024, with the balance of the Extended Term Loan A due at maturity on February 8, 2025. | |||||||||
[5] | Interest rates with respect to revolving loans under the Senior Secured Credit Facility at March 31, 2021 were based on, at the Company's option, (a) adjusted London Interbank Offering Rate ("LIBOR") plus an additional margin or (b) JP Morgan Chase Bank, N.A.'s prime rate ("ABR") plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. | |||||||||
[6] | The available capacity under the Non-extended Revolving Credit Commitment is $477 million, while the available capacity under the Extended Revolving Credit Commitment is $948 million. As of March 31, 2021, there were no outstanding borrowings under either the Non-extended Revolving Credit Commitment or Extended Revolving Credit Commitment and $43 million of outstanding undrawn letters of credit. The Non-extended Revolving Credit Commitment expires in February 2023 and, subject to earlier spring maturity described in footnote (3), the Extended Revolving Credit Commitment expires in February 2025, but in each instance, amounts outstanding would be classified on the balance sheet as current due to the revolving nature and terms and conditions of the facilities. On May 3, 2021, the Company had no outstanding borrowings under the Revolving Credit Facility and $43 million of outstanding undrawn letters of credit | |||||||||
[7] | The maturity date of each of the Extended Revolving Credit Commitment and Extended Term Loan A may spring forward to a date prior to February 2025 as follows: (i) if on or before March 2, 2023, the 4.875% Senior Notes have not been extended, refinanced or replaced to have a maturity date after May 10, 2025 (or are not otherwise discharged, defeased or repaid by March 2, 2023), the maturity date of the Extended Revolving Credit Commitment and Extended Term Loan A Facility will be March 2, 2023; and (ii) if on or before November 9, 2024, the Term Loan B Facility under the Senior Secured Credit Agreement is not extended, refinanced or replaced to have a maturity date after May 10, 2025 (or otherwise repaid prior to November 9, 2024), the maturity date of the Extended Revolving Credit Commitment and Extended Term Loan A Facility will be November 9, 2024 | |||||||||
[8] | As of March 31, 2021, the Company had $200 million of borrowing capacity under the Apple Ridge Funding LLC securitization program leaving $103 million of available capacity. | |||||||||
[9] | Available capacity is subject to maintaining sufficient relocation related assets to collateralize these securitization obligations. | |||||||||
[10] | Consists of a £10 million revolving loan facility and a £5 million working capital facility. As of March 31, 2021, the Company had $21 million of borrowing capacity under the Cartus Financing Limited securitization program leaving $18 million of available capacity |
Short And Long-Term Debt Maturi
Short And Long-Term Debt Maturities Table (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2020 | ||
Maturities of Long-term Debt | |||||
Remaining 2021 (a) | [1] | $ 12 | |||
2022 | 21 | ||||
2023 | 631 | ||||
2024 | 33 | ||||
2025 | $ 1,084 | ||||
Long-term Debt Maturities, Years Presented | 4 years | ||||
Current portion of long-term debt | $ 17 | $ 62 | |||
Scenario, Forecast | Secured Debt | Extended Term Loan A | |||||
Maturities of Long-term Debt | |||||
Debt Instrument, Periodic Payment, Principal | $ 4 | $ 6 | |||
Scenario, Forecast | Secured Debt | Term Loan B | |||||
Maturities of Long-term Debt | |||||
Debt Instrument, Periodic Payment, Principal | $ 8 | $ 11 | |||
[1] | Remaining 2021 includes amortization payments totaling $4 million and $8 million for the Extended Term Loan A and Term Loan B Facility, respectively. The current portion of long-term debt of $17 million shown on the Condensed Consolidated Balance Sheets consists of four quarters of amortization payments totaling $6 million and $11 million for the Extended Term Loan A and Term Loan B Facility, respectively. |
Short And Long-Term Debt Senior
Short And Long-Term Debt Senior Secured Credit Facility (Details) $ in Millions | 3 Months Ended | |||||||||
Mar. 31, 2021USD ($) | Feb. 05, 2021USD ($) | Jan. 27, 2021USD ($) | Jan. 11, 2021USD ($) | Dec. 31, 2020USD ($) | Jul. 24, 2020 | Jun. 30, 2020 | Feb. 28, 2018USD ($) | |||
Debt Instrument [Line Items] | ||||||||||
Long-term debt principal amount | $ 3,231 | |||||||||
Senior secured leverage ratio | 0.64 | |||||||||
Ratio of Indebtedness to Net Capital Denominator | 1 | |||||||||
Letter of Credit, borrowing capacity | $ 125 | |||||||||
Maximum | Required Covenant Ratio from December 2020 to June 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior secured leverage ratio | 5.25 | |||||||||
Ratio of Indebtedness to Net Capital Denominator | 1 | |||||||||
Maximum | Required Covenant Ratio from July 2021 to March 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior secured leverage ratio | 5 | |||||||||
Ratio of Indebtedness to Net Capital Denominator | 1 | |||||||||
Maximum | Required Covenant Ratio from April 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior secured leverage ratio | 4.75 | |||||||||
Ratio of Indebtedness to Net Capital Denominator | 1 | |||||||||
Maximum | Suggested Covenant Ratio compliance for additional covenants under 2021 Amendment until June 30, 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior secured leverage ratio | 5 | |||||||||
Ratio of Indebtedness to Net Capital Denominator | 1 | |||||||||
Maximum | Suggested Covenant Ratio compliance for additional covenants under 2020 Amendment from July 24 2020 to June 30, 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior secured leverage ratio | 5.50 | |||||||||
Ratio of Indebtedness to Net Capital Denominator | 1 | |||||||||
Maximum | Required Covenant Ratio for election by Company to end the amended covenant period under 2021 Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior secured leverage ratio | 4.75 | |||||||||
Ratio of Indebtedness to Net Capital Denominator | 1 | |||||||||
Maximum | Required Covenant Ratio | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior secured leverage ratio | 4.75 | |||||||||
Ratio of Indebtedness to Net Capital Denominator | 1 | |||||||||
LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Description of variable interest rate basis | LIBOR | |||||||||
ABR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Description of variable interest rate basis | ABR | |||||||||
Term Loan B | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Repurchase Amount | $ (655) | |||||||||
Term Loan B | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||
Debt Instrument, Basis Spread on Variable Rate, Floor | 0.75% | |||||||||
Term Loan B | ABR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||||
Debt Instrument, Basis Spread on Variable Rate, Floor | 1.75% | |||||||||
Line of Credit | Extended Revolving Credit Commitment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility borrowing capacity | $ 948 | $ 948 | ||||||||
Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility borrowing capacity | $ 1,425 | |||||||||
Line of Credit | Revolving Credit Facility | LIBOR | Greater than 3.50 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||||
Line of Credit | Revolving Credit Facility | LIBOR | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||
Line of Credit | Revolving Credit Facility | LIBOR | Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||
Line of Credit | Revolving Credit Facility | LIBOR | Less than 2.00 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||||
Line of Credit | Revolving Credit Facility | ABR | Greater than 3.50 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||
Line of Credit | Revolving Credit Facility | ABR | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||||
Line of Credit | Revolving Credit Facility | ABR | Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||
Line of Credit | Revolving Credit Facility | ABR | Less than 2.00 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||||
Line of Credit | Non-extended Revolving Credit Commitment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility borrowing capacity | [1] | $ 477 | ||||||||
Secured Debt | Term Loan A | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Repurchase Amount | (250) | |||||||||
Long-term debt principal amount | $ 434 | $ 750 | ||||||||
Secured Debt | Term Loan A | LIBOR | Greater than 3.50 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||||
Secured Debt | Term Loan A | LIBOR | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||
Secured Debt | Term Loan A | LIBOR | Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||
Secured Debt | Term Loan A | LIBOR | Less than 2.00 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||||
Secured Debt | Term Loan A | ABR | Greater than 3.50 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||
Secured Debt | Term Loan A | ABR | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||||
Secured Debt | Term Loan A | ABR | Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||
Secured Debt | Term Loan A | ABR | Less than 2.00 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||||
Secured Debt | Term Loan B | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt principal amount | $ 390 | [2] | $ 1,048 | $ 1,080 | ||||||
Annual percentage of original principal amount for quarterly amortization payments | 1.00% | |||||||||
Secured Debt | Extended Term Loan A | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt principal amount | $ 237 | [3],[4] | $ 237 | 0 | ||||||
Senior Notes | 5.75% Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt principal amount | $ 900 | $ 900 | $ 0 | |||||||
Interest Rate | 5.75% | |||||||||
[1] | Interest rates with respect to revolving loans under the Senior Secured Credit Facility at March 31, 2021 were based on, at the Company's option, (a) adjusted London Interbank Offering Rate ("LIBOR") plus an additional margin or (b) JP Morgan Chase Bank, N.A.'s prime rate ("ABR") plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. | |||||||||
[2] | In January and February 2021, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $655 million of outstanding borrowings under the Term Loan B Facility. The Term Loan B Facility provides for quarterly amortization payments totaling 1% per annum of the $1,080 million original principal amount. The interest rate with respect to term loans under the Term Loan B Facility is based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) ABR plus 1.25% (with an ABR floor of 1.75%). On April 28, 2021, the Company used cash on hand to pay down $150 million of the Term Loan B Facility. | |||||||||
[3] | In January 2021, prior to the effective date of the 2021 Amendments, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $250 million of outstanding borrowings under the Term Loan A Facility. The interest rates with respect to each of the Non-extended Term Loan A and Extended Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. | |||||||||
[4] | The Extended Term Loan A has quarterly amortization payments, commencing with the quarter ending June 30, 2021, equal to a percentage per quarter of the $237 million principal amount of the Extended Term Loan A outstanding on January 27, 2021 (the effective date of the 2021 Amendments), as follows: 0.625% per quarter from June 30, 2021 to March 31, 2022; 1.25% per quarter from June 30, 2022 to March 31, 2023; 1.875% per quarter from June 30, 2023 to March 31, 2024; and 2.50% per quarter for periods ending on or after June 30, 2024, with the balance of the Extended Term Loan A due at maturity on February 8, 2025. |
Short And Long-Term Debt Term L
Short And Long-Term Debt Term Loan A Facility (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2021 | Jan. 27, 2021 | Jan. 11, 2021 | Dec. 31, 2020 | Feb. 28, 2018 | ||
Debt Instrument [Line Items] | ||||||
Long-term debt principal amount | $ 3,231 | |||||
Term Loan A | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt principal amount | $ 434 | $ 750 | ||||
Term Loan A | Secured Debt | Greater than 3.50 to 1.00 | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||
Term Loan A | Secured Debt | Greater than 3.50 to 1.00 | ABR | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||
Term Loan A | Secured Debt | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||
Term Loan A | Secured Debt | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ABR | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||
Term Loan A | Secured Debt | Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||
Term Loan A | Secured Debt | Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 | ABR | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||
Term Loan A | Secured Debt | Less than 2.00 to 1.00 | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||
Term Loan A | Secured Debt | Less than 2.00 to 1.00 | ABR | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||
Extended Term Loan A | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt principal amount | $ 237 | [1],[2] | $ 237 | $ 0 | ||
Extended Term Loan A | Secured Debt | June 2021 to March 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly percentage of original principal amount for quarterly amortization payments | 0.625% | |||||
Extended Term Loan A | Secured Debt | June 2022 to March 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly percentage of original principal amount for quarterly amortization payments | 1.25% | |||||
Extended Term Loan A | Secured Debt | June 2023 to March 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly percentage of original principal amount for quarterly amortization payments | 1.875% | |||||
Extended Term Loan A | Secured Debt | June 2024 and thereafter | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly percentage of original principal amount for quarterly amortization payments | 2.50% | |||||
[1] | In January 2021, prior to the effective date of the 2021 Amendments, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $250 million of outstanding borrowings under the Term Loan A Facility. The interest rates with respect to each of the Non-extended Term Loan A and Extended Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 1.75% and the ABR margin was 0.75% for the three months ended March 31, 2021. | |||||
[2] | The Extended Term Loan A has quarterly amortization payments, commencing with the quarter ending June 30, 2021, equal to a percentage per quarter of the $237 million principal amount of the Extended Term Loan A outstanding on January 27, 2021 (the effective date of the 2021 Amendments), as follows: 0.625% per quarter from June 30, 2021 to March 31, 2022; 1.25% per quarter from June 30, 2022 to March 31, 2023; 1.875% per quarter from June 30, 2023 to March 31, 2024; and 2.50% per quarter for periods ending on or after June 30, 2024, with the balance of the Extended Term Loan A due at maturity on February 8, 2025. |
Short And Long-Term Debt Seni_2
Short And Long-Term Debt Senior Secured Second Lien Notes (Details) | Mar. 31, 2021 |
7.625% Senior Secured Second Lien Notes | Secured Debt | |
Debt Instrument [Line Items] | |
Interest Rate | 7.625% |
9.375% Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Interest Rate | 9.375% |
Short And Long-Term Debt Unsecu
Short And Long-Term Debt Unsecured Notes (Details) - USD ($) $ in Millions | 3 Months Ended | ||||||
Mar. 31, 2021 | Mar. 31, 2020 | Feb. 05, 2021 | Jan. 11, 2021 | Dec. 31, 2020 | Feb. 28, 2018 | ||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 3,231 | ||||||
Proceeds from issuance of Senior Notes | $ (905) | $ 0 | |||||
Consolidated Leverage Ratio - Consolidated Net Income Build - Numerator | 4 | ||||||
Consolidated Leverage Ratio - Consolidated Net Income Build - Denominator | 1 | ||||||
Cumulative Credit Basket increase as a % of Consolidated Net Income when the consolidated leverage ratio is less than 4.0 to 1.0 | 50.00% | ||||||
Cumulative Credit Basket increase as a % of Consolidated Net Income when the consolidated leverage ratio is equal to or greater than 4.0 to 1.0 | 25.00% | ||||||
Consolidated Leverage Ratio - Unlimited General Restricted Payment Basket - Numerator | 3 | ||||||
Consolidated Leverage Ratio - Unlimited Restricted Payment Basket - Denominator | 1 | ||||||
General restricted payment basket may be used only for restricted investments (as defined in the indenture to the 9.375% notes) | $ 100 | ||||||
Max amount of shares repurchased and dividends declared per year under the 9.375 Credit Agreement | 45 | ||||||
Net Debt Seasonality Adjustment | 200 | ||||||
Term Loan B | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Repurchase Amount | $ (655) | ||||||
Secured Debt | 7.625% Senior Secured Second Lien Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 550 | $ 550 | |||||
Interest Rate | 7.625% | ||||||
Secured Debt | Term Loan B | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 390 | [1] | 1,048 | $ 1,080 | |||
Secured Debt | Term Loan A | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 434 | $ 750 | |||||
Debt Instrument, Repurchase Amount | (250) | ||||||
Senior Notes | 5.75% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 900 | $ 900 | 0 | ||||
Interest Rate | 5.75% | ||||||
Senior Notes | 4.875% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 407 | 407 | |||||
Interest Rate | 4.875% | ||||||
Senior Notes | 9.375% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 550 | $ 550 | |||||
Interest Rate | 9.375% | ||||||
[1] | In January and February 2021, we used a portion of the proceeds from the issuance of 5.75% Senior Notes to pay down $655 million of outstanding borrowings under the Term Loan B Facility. The Term Loan B Facility provides for quarterly amortization payments totaling 1% per annum of the $1,080 million original principal amount. The interest rate with respect to term loans under the Term Loan B Facility is based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) ABR plus 1.25% (with an ABR floor of 1.75%). On April 28, 2021, the Company used cash on hand to pay down $150 million of the Term Loan B Facility. |
Short And Long-Term Debt Securi
Short And Long-Term Debt Securitization Obligations (Details) £ in Millions, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021GBP (£) | Dec. 31, 2020USD ($) | ||
Debt Instrument [Line Items] | |||||
Securitization obligations | $ 100 | $ 106 | |||
Securitization obligation | |||||
Debt Instrument [Line Items] | |||||
Relocation receivables and other related relocation assets that collateralize securitization obligations | 134 | 135 | |||
Interest Expense, Debt | $ 1 | $ 2 | |||
Weighted average interest rate, securitization obligations | 3.90% | 3.80% | 3.90% | ||
Apple Ridge Funding LLC | Securitization obligation | |||||
Debt Instrument [Line Items] | |||||
Total capacity, securitization obligations | $ 200 | ||||
Securitization obligations | 97 | [1],[2] | 102 | ||
Debt Instrument, Unused Borrowing Capacity, Amount | 103 | ||||
Cartus Financing Limited | Securitization obligation | |||||
Debt Instrument [Line Items] | |||||
Total capacity, securitization obligations | 21 | ||||
Securitization obligations | 3 | [2],[3] | $ 4 | ||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 18 | ||||
Cartus Financing Limited | Securitization obligation | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Total capacity, securitization obligations | £ | £ 10 | ||||
Cartus Financing Limited | Securitization obligation | Working Capital Facility | |||||
Debt Instrument [Line Items] | |||||
Total capacity, securitization obligations | £ | £ 5 | ||||
7.625% Senior Secured Second Lien Notes | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 7.625% | 7.625% | |||
[1] | As of March 31, 2021, the Company had $200 million of borrowing capacity under the Apple Ridge Funding LLC securitization program leaving $103 million of available capacity. | ||||
[2] | Available capacity is subject to maintaining sufficient relocation related assets to collateralize these securitization obligations. | ||||
[3] | Consists of a £10 million revolving loan facility and a £5 million working capital facility. As of March 31, 2021, the Company had $21 million of borrowing capacity under the Cartus Financing Limited securitization program leaving $18 million of available capacity |
Short And Long-Term Debt Loss o
Short And Long-Term Debt Loss on the Early Extinguishment of Debt (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Debt Disclosure [Abstract] | |||
Gain (Loss) on Extinguishment of Debt | [1] | $ (17) | $ 0 |
Write off of Deferred Debt Issuance Cost | $ 1 | ||
[1] | Loss on the early extinguishment of debt is recorded in Corporate and Other. |
Restructuring Costs Restructu_3
Restructuring Costs Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | [1] | $ 5 | $ 12 |
Personnel Related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | [2] | 2 | 3 |
Facility Related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs, net | [3] | $ 3 | $ 9 |
[1] | The three months ended March 31, 2021 includes restructuring charges of $2 million at Realogy Franchise Group, $2 million at Realogy Brokerage Group and $1 million at Corporate and Other.The three months ended March 31, 2020 includes restructuring charges of $2 million at Realogy Franchise Group, $9 million at Realogy Brokerage Group and $1 million at Realogy Title Group. | ||
[2] | Personnel-related costs consist of severance costs provided to employees who have been terminated and duplicate payroll costs during transition. | ||
[3] | Facility-related costs consist of costs associated with planned facility closures such as contract termination costs, amortization of lease assets that will continue to be incurred under the contract for its remaining term without economic benefit to the Company, accelerated depreciation on asset disposals and other facility and employee relocation related costs |
Restructuring Costs Facility an
Restructuring Costs Facility and Operational Efficiencies Program (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs, net | [1] | $ 5 | $ 12 |
Other Asset Impairment Charges | 4 | ||
Realogy Franchise Group | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs, net | 2 | 2 | |
Realogy Brokerage Group | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs, net | 2 | 9 | |
Realogy Title Group | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs, net | 1 | ||
Corporate and Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs, net | 1 | ||
Personnel Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs, net | [2] | 2 | 3 |
Facility Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs, net | [3] | 3 | $ 9 |
Other Asset Impairment Charges | 1 | ||
Operational Efficiencies Program | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2020 | 27 | ||
Restructuring costs, net | [4] | 5 | |
Costs paid or otherwise settled | (9) | ||
Balance at March 31, 2021 | 23 | ||
Restructuring and Related Cost, Expected Cost [Abstract] | |||
Restructuring and Related Cost, Expected Cost | 166 | ||
Restructuring and Related Cost, Cost Incurred to Date | 117 | ||
Restructuring and Related Cost, Expected Cost Remaining | 49 | ||
Operational Efficiencies Program | Realogy Franchise Group | |||
Restructuring and Related Cost, Expected Cost [Abstract] | |||
Restructuring and Related Cost, Expected Cost | 32 | ||
Restructuring and Related Cost, Cost Incurred to Date | 30 | ||
Restructuring and Related Cost, Expected Cost Remaining | 2 | ||
Operational Efficiencies Program | Realogy Brokerage Group | |||
Restructuring and Related Cost, Expected Cost [Abstract] | |||
Restructuring and Related Cost, Expected Cost | 82 | ||
Restructuring and Related Cost, Cost Incurred to Date | 62 | ||
Restructuring and Related Cost, Expected Cost Remaining | 20 | ||
Operational Efficiencies Program | Realogy Title Group | |||
Restructuring and Related Cost, Expected Cost [Abstract] | |||
Restructuring and Related Cost, Expected Cost | 6 | ||
Restructuring and Related Cost, Cost Incurred to Date | 6 | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
Operational Efficiencies Program | Corporate and Other | |||
Restructuring and Related Cost, Expected Cost [Abstract] | |||
Restructuring and Related Cost, Expected Cost | 46 | ||
Restructuring and Related Cost, Cost Incurred to Date | 19 | ||
Restructuring and Related Cost, Expected Cost Remaining | 27 | ||
Operational Efficiencies Program | Personnel Related | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2020 | 5 | ||
Restructuring costs, net | [4] | 2 | |
Costs paid or otherwise settled | (4) | ||
Balance at March 31, 2021 | 3 | ||
Restructuring and Related Cost, Expected Cost [Abstract] | |||
Restructuring and Related Cost, Expected Cost | 56 | ||
Restructuring and Related Cost, Cost Incurred to Date | 52 | ||
Restructuring and Related Cost, Expected Cost Remaining | 4 | ||
Operational Efficiencies Program | Facility Related | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2020 | 22 | ||
Restructuring costs, net | [4] | 3 | |
Costs paid or otherwise settled | (5) | ||
Balance at March 31, 2021 | 20 | ||
Restructuring and Related Cost, Expected Cost [Abstract] | |||
Restructuring and Related Cost, Expected Cost | [5] | 109 | |
Restructuring and Related Cost, Cost Incurred to Date | 64 | ||
Restructuring and Related Cost, Expected Cost Remaining | [5] | 45 | |
Operational Efficiencies Program | Other Restructuring | |||
Restructuring and Related Cost, Expected Cost [Abstract] | |||
Restructuring and Related Cost, Expected Cost | 1 | ||
Restructuring and Related Cost, Cost Incurred to Date | 1 | ||
Restructuring and Related Cost, Expected Cost Remaining | $ 0 | ||
[1] | The three months ended March 31, 2021 includes restructuring charges of $2 million at Realogy Franchise Group, $2 million at Realogy Brokerage Group and $1 million at Corporate and Other.The three months ended March 31, 2020 includes restructuring charges of $2 million at Realogy Franchise Group, $9 million at Realogy Brokerage Group and $1 million at Realogy Title Group. | ||
[2] | Personnel-related costs consist of severance costs provided to employees who have been terminated and duplicate payroll costs during transition. | ||
[3] | Facility-related costs consist of costs associated with planned facility closures such as contract termination costs, amortization of lease assets that will continue to be incurred under the contract for its remaining term without economic benefit to the Company, accelerated depreciation on asset disposals and other facility and employee relocation related costs | ||
[4] | In addition, the Company incurred an additional $1 million of facility-related costs for lease asset impairments in connection with the Facility and Operational Efficiencies Program during the three months ended March 31, 2021. | ||
[5] | Facility-related costs include potential lease asset impairments to be incurred under the Facility and Operational Efficiencies Program. |
Equity (Details)
Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Equity Table [Line Items] | ||
Beginning Balance | 115,457,067 | |
Ending Balance | 116,411,025 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ 1,767 | $ 2,096 |
Net income (loss) | 34 | (462) |
Other comprehensive income (loss) | 0 | (1) |
Stock-based compensation | 6 | 6 |
Issuance of shares for vesting of equity awards | 0 | 0 |
Shares withheld for taxes on equity awards | (8) | (4) |
Dividends declared, APIC | 0 | 0 |
Dividends declared | (2) | (1) |
Ending Balance | $ 1,797 | $ 1,634 |
Common Stock | ||
Statement of Equity Table [Line Items] | ||
Beginning Balance | 115,500,000 | 114,400,000 |
Issuance of shares for vesting of equity awards | 1,400,000 | 1,400,000 |
Shares withheld for taxes on equity awards | (500,000) | (500,000) |
Ending Balance | 116,400,000 | 115,300,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ 1 | $ 1 |
Issuance of shares for vesting of equity awards | 0 | 0 |
Shares withheld for taxes on equity awards | 0 | 0 |
Ending Balance | 1 | 1 |
Additional Paid-In Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 4,876 | 4,842 |
Stock-based compensation | 6 | 6 |
Shares withheld for taxes on equity awards | (8) | (4) |
Ending Balance | 4,874 | 4,844 |
Accumulated Deficit | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (3,055) | (2,695) |
Net income (loss) | 33 | (462) |
Ending Balance | (3,022) | (3,157) |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (59) | (56) |
Other comprehensive income (loss) | (1) | |
Ending Balance | (59) | (57) |
Non- controlling Interests | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 4 | 4 |
Net income (loss) | 1 | 0 |
Dividends declared, Noncontrolling Interest | (2) | (1) |
Ending Balance | $ 3 | $ 3 |
Equity Stock-Based Compensation
Equity Stock-Based Compensation (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Restricted Stock Units (RSUs) | |
Non Options Granted in Period | shares | 0.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 14.10 |
Performance Shares | |
Non Options Granted in Period | shares | 0.6 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.55 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to Realogy Holdings and Realogy Group | $ 33 | $ (462) | |
Earnings Per Share, Basic and Diluted [Abstract] | |||
Weighted average common shares outstanding, Basic | 115,900 | 114,700 | |
Dilutive effect of stock-based compensation | [1],[2] | 2,500 | 0 |
Weighted average common shares outstanding, Diluted | 118,400 | 114,700 | |
Basic earnings (loss) per share | $ 0.28 | $ (4.03) | |
Diluted earnings (loss) per share | $ 0.28 | $ (4.03) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,800 | ||
[1] | The Company was in a net loss position for the three months ended March 31, 2020 and therefore the impact of incentive equity awards were excluded from the computation of dilutive loss per share as the inclusion of such amounts would be anti-dilutive | ||
[2] | The three months ended March 31, 2021 exclude 5.8 million shares of common stock issuable for incentive equity awards, which include performance share units based on the achievement of target amounts, that are anti-dilutive to the diluted earnings per share computation. |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jul. 31, 2006Independent_Companies | |
Commitments and Contingencies Disclosure [Abstract] | |||
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Litigation The Company is involved in claims, legal proceedings, alternative dispute resolution and governmental inquiries related to alleged contract disputes, business practices, intellectual property and other commercial, employment, regulatory and tax matters. Examples of such matters include but are not limited to allegations: • concerning anti-trust and anti-competition matters (including claims related to NAR or MLS rules regarding buyer broker commissions); • that independent residential real estate sales agents engaged by Realogy Brokerage Group or by affiliated franchisees—under certain state or federal laws—are potentially employees instead of independent contractors, and they or regulators therefore may bring claims against Realogy Brokerage Group for breach of contract, wage and hour classification claims, wrongful discharge, unemployment and workers' compensation and could seek benefits, back wages, overtime, indemnification, penalties related to classification practices and expense reimbursement available to employees or similar claims against Realogy Franchise Group as an alleged joint employer of an affiliated franchisee’s independent sales agents; • concerning other employment law matters, including other types of worker classification claims as well as wage and hour claims and retaliation claims; • that the Company is vicariously liable for the acts of franchisees under theories of actual or apparent agency; • by current or former franchisees that franchise agreements were breached including improper terminations; • concerning alleged RESPA or state real estate law violations; • concerning claims related to the Telephone Consumer Protection Act, including autodialer claims; • concerning claims generally against the company owned brokerage operations for negligence, misrepresentation or breach of fiduciary duty in connection with the performance of real estate brokerage or other professional services as well as other brokerage claims associated with listing information and property history; • related to copyright law, including infringement actions alleging improper use of copyrighted photographs on websites or in marketing materials without consent of the copyright holder or claims challenging our trademarks; • concerning breach of obligations to make websites and other services accessible for consumers with disabilities; • concerning claims generally against the title agent contending that the agent knew or should have known that a transaction was fraudulent or that the agent was negligent in addressing title defects or conducting the settlement; • concerning information security, including claims under new and emerging data privacy laws related to the protection of customer, employee or third-party information; • concerning cyber-crime, including claims related to the diversion of homesale transaction closing funds; and • those related to general fraud claims. Worker Classification Litigation Whitlach v. Premier Valley, Inc. d/b/a Century 21 M&M and Century 21 Real Estate LLC (Superior Court of California, Stanislaus County). This was filed as a putative class action complaint on December 20, 2018 by plaintiff James Whitlach against Premier Valley Inc., a Century 21 Real Estate independently-owned franchisee doing business as Century 21 M&M (“Century 21 M&M”). The complaint also names Century 21 Real Estate LLC, a wholly-owned subsidiary of the Company and the franchisor of Century 21 Real Estate (“Century 21”), as an alleged joint employer of the franchisee’s independent sales agents and seeks to certify a class that could potentially include all agents of both Century 21 M&M and Century 21 in California. In February 2019, the plaintiff amended his complaint to assert claims pursuant to the California Private Attorneys General Act (“PAGA”). Following the Court's dismissal of the plaintiff's non-PAGA claims without prejudice in June 2019, the plaintiff filed a second amended complaint asserting one cause of action for alleged civil penalties under PAGA in June 2020 and continued to pursue his PAGA claims as a representative of purported "aggrieved employees" as defined by PAGA. As such representative, the plaintiff seeks all non-individualized relief available to the purported aggrieved employees under PAGA, as well as attorneys’ fees. Under California law, PAGA claims are generally not subject to arbitration and may result in exposure in the form of additional penalties. In the second amended complaint, the plaintiff continues to allege that Century 21 M&M misclassified all of its independent real estate agents, salespeople, sales professionals, broker associates and other similar positions as independent contractors, failed to pay minimum wages, failed to provide meal and rest breaks, failed to pay timely wages, failed to keep proper records, failed to provide appropriate wage statements, made unlawful deductions from wages, and failed to reimburse plaintiff and the putative class for business related expenses, resulting in violations of the California Labor Code. The demurrer filed by Century 21 M&M (and joined by Century 21) on August 3, 2020 to the plaintiff's amended complaint, was granted by the Court on November 10, 2020, dismissing the case without leave to replead. On January 20, 2021, plaintiff filed a notice of appeal of the Court’s order granting the demurrer. This case raises various previously unlitigated claims and the PAGA claim adds additional litigation, financial and operating uncertainties. Real Estate Industry Litigation Moehrl, Cole, Darnell, Nager, Ramey, Sawbill Strategic, Inc., Umpa and Ruh v. The National Association of Realtors, Realogy Holdings Corp., Homeservices of America, Inc., BHH Affiliates, LLC, The Long & Foster Companies, Inc., RE/MAX LLC, and Keller Williams Realty, Inc. (U.S. District Court for the Northern District of Illinois). This amended putative class action complaint (the "amended Moehrl complaint"), filed on June 14, 2019, (i) consolidates the Moehrl and Sawbill litigation reported in our Form 10-Q for the period ended March 31, 2019, (ii) adds certain plaintiffs and defendants, and (iii) serves as a response to the separate motions to dismiss filed on May 17, 2019 in the prior Moehrl litigation by each of NAR and the Company (along with the other defendants named in the prior Moehrl complaint). In the amended Moehrl complaint, the plaintiffs allege that the defendants engaged in a continuing contract, combination, or conspiracy to unreasonably restrain trade and commerce in violation of Section 1 of the Sherman Act because defendant NAR allegedly established mandatory anticompetitive policies for the multiple listing services and its member brokers that require brokers to make an offer of buyer broker compensation when listing a property. The plaintiffs further allege that commission sharing, which provides for the broker representing the seller sharing or paying a portion of its commission to the broker representing the buyer, is anticompetitive and violates the Sherman Act, and that the defendant franchisors conspired with NAR by requiring their respective franchisees to comply with NAR’s policies and Code of Ethics. The plaintiffs seek a permanent injunction enjoining the defendants from requiring home sellers to pay buyer broker commissions or to otherwise restrict competition among buyer brokers, an award of damages and/or restitution, attorneys fees and costs of suit. In October 2019, the Department of Justice ("DOJ") filed a statement of interest for this matter, in their words “to correct the inaccurate portrayal, by defendant The National Association of Realtors (‘NAR’), of a 2008 consent decree between the United States and NAR.” A motion to appoint lead counsel in the case was granted on an interim basis by the Court on May 30, 2020. On October 2, 2020, the Court denied the separate motions to dismiss filed in August 2019 by each of NAR and the Company (together with the other defendants named in the amended Moehrl complaint). Discovery between the plaintiffs and defendants is ongoing. Sitzer and Winger v. The National Association of Realtors, Realogy Holdings Corp., Homeservices of America, Inc., RE/MAX Holdings, Inc., and Keller Williams Realty, Inc. (U.S. District Court for the Western District of Missouri). This is a putative class action complaint filed on April 29, 2019 and amended on June 21, 2019 by plaintiffs Joshua Sitzer and Amy Winger against NAR, the Company, Homeservices of America, Inc., RE/MAX Holdings, Inc., and Keller Williams Realty, Inc. The complaint contains substantially similar allegations, and seeks the same relief under the Sherman Act, as the Moehrl litigation. The Sitzer litigation is limited both in allegations and relief sought to the State of Missouri and includes an additional cause of action for alleged violation of the Missouri Merchandising Practices Act, or MMPA. On August 22, 2019, the Court denied defendants' motions to transfer the Sitzer matter to the U.S. District Court for the Northern District of Illinois and on October 16, 2019, denied the motions to dismiss this litigation filed respectively by NAR and the Company (together with the other named brokerage/franchisor defendants). In September 2019, the DOJ filed a statement of interest and appearances for this matter for the same purpose stated in the Moehrl matter. In July 2020, the DOJ requested the Company provide it with all materials produced for Sitzer, with such request related to and preceding the subsequent civil lawsuit filed and related settlement agreement between the DOJ and NAR in November 2020. Discovery between the plaintiffs and defendants is ongoing. Leeder v. The National Association of Realtors, Realogy Holdings Corp., Homeservices of America, Inc., BHH Affiliates, LLC, HSF Affiliates, LLC, The Long & Foster Companies, Inc., RE/MAX LLC, and Keller Williams Realty, Inc. (U.S. District Court for the Northern District of Illinois Eastern Division). In this putative class action filed on January 25, 2021, the plaintiff takes issue with certain NAR policies, including those related to buyer broker compensation at issue in the Moehrl and Sitzer matters as well as those at issue in the 2020 settlement between the DOJ and NAR, but claims the alleged conspiracy has harmed buyers (instead of sellers). The plaintiff alleges that the defendants made agreements and engaged in a conspiracy in restraint of trade in violation of the Sherman Act and were unjustly enriched, and seek a permanent injunction enjoining NAR from establishing in the future the same or similar rules, policies, or practices as those challenged in the action as well as an award of damages and/or restitution, interest, and reasonable attorneys’ fees and expenses. The Company (together with the other companies named in the complaint) filed a motion to dismiss the complaint on April 20, 2021. Conti v. San Francisco Association of Realtors, National Association of Realtors, Greater San Diego Association of Realtors, Realogy Holdings Corp., Compass SF I, Inc., Sotheby’s International Realty, Homeservices of America, Inc., Rodeo Realty, Inc., RE/MAX Holdings, Inc., and Keller Williams Realty, Inc. (U.S. District Court for the Northern District of California San Francisco Division). In this putative class action filed on March 19, 2021, the plaintiff raises claims regarding the NAR policies and rules similar to those at issue in the Leeder matter, alleging violations of the Sherman Act, the California Cartwright Act, the California Unfair Competition Law as well as unjust enrichment claims. The plaintiff seeks a permanent injunction enjoining NAR from establishing in the future the same or similar rules, policies, or practices as those challenged in the action as well as an award of damages and/or restitution, interest, and reasonable attorneys’ fees and expenses. Rubenstein, Nolan v. The National Association of Realtors, Realogy Holdings Corp., Coldwell Banker, Sotheby’s Investment Realty, and Homeservices of America, Inc. (U.S. District Court for the District of Connecticut). In this putative class action, the plaintiffs take issue with the same NAR policies related to buyer broker compensation at issue in the Moehrl and Sitzer matters, but claim the alleged conspiracy has harmed buyers (instead of sellers) and is a federal racketeering violation (instead of a violation of federal antitrust law). On October 29, 2020, the plaintiffs filed a statement with the Court outlining the alleged racketeering violations. The Company filed its motion to dismiss the amended complaint on November 30, 2020 and on January 23, 2021, the plaintiffs filed their objections and opposition. On January 25, 2021, the Court granted defendants’ motion to stay discovery pending its determination of the pending motion to dismiss. Bauman, Bauman and Nosalek v. MLS Property Information Network, Inc., Realogy Holdings Corp., Homeservices of America, Inc., BHH Affiliates, LLC, HSF Affiliates, LLC, RE/MAX LLC, and Keller Williams Realty, Inc. (U.S. District Court for the District of Massachusetts). This is a putative class action filed on December 17, 2020, wherein the plaintiffs take issue with policies and rules similar to those at issue in the Moehrl , Sitzer and Rubenstein matters, but rather than objecting to the national policies and rules published by NAR, this lawsuit specifically objects to the alleged policies and rules of a multiple listing service that is owned by realtors, including in part by one of Realogy’s company-owned brokerages. The plaintiffs allege that the defendants made agreements and engaged in a conspiracy in restraint of trade in violation of the Sherman Act and seek a permanent injunction, enjoining the defendants from continuing conduct determined to be unlawful, as well as an award of damages and/or restitution, interest, and reasonable attorneys’ fees and expenses. The Company (together with the other companies named in the complaint) filed a motion to dismiss the complaint on March 1, 2021. The Company disputes the allegations in each of the captioned matters described above and will vigorously defend these actions. Given the early stages of each of these cases, we cannot estimate a range of reasonably possible losses for this litigation. The Company believes that it has adequately accrued for legal matters as appropriate. The Company records litigation accruals for legal matters which are both probable and estimable. Litigation and other disputes are inherently unpredictable and subject to substantial uncertainties and unfavorable resolutions could occur. In addition, class action lawsuits can be costly to defend and, depending on the class size and claims, could be costly to settle. As such, the Company could incur judgments or enter into settlements of claims with liability that are materially in excess of amounts accrued and these settlements could have a material adverse effect on the Company’s financial condition, results of operations or cash flows in any particular period. * * * Closed Securities Litigation Tanaskovic v. Realogy Holdings Corp., et. al. (U.S. District Court for the District of New Jersey). The Court granted the Company's motion to dismiss this matter with prejudice on January 21, 2021. On February 18, 2021, the parties agreed not to pursue the litigation any further with each party bearing their own costs. Fried v. Realogy Holdings Corp., et al. (U.S. District Court for the District of New Jersey). On March 26, 2021, the Court approved a stipulation and order of voluntary dismissal with prejudice of this matter, with each party bearing their own costs. * * * Company-Initiated Litigation Realogy Holdings Corp., NRT New York LLC (d/b/a The Corcoran Group), Sotheby’s International Realty, Inc., Coldwell Banker Residential Brokerage Company, Coldwell Banker Residential Real Estate LLC, NRT West, Inc., Martha Turner Properties, L.P. And Better Homes and Gardens Real Estate LLC v. Urban Compass, Inc., and Compass, Inc. (Supreme Court New York, New York County). On July 10, 2019, the Company and certain of its subsidiaries filed a complaint against Urban Compass, Inc. and Compass, Inc. (together, "Compass") alleging misappropriation of trade secrets; tortious interference with contract; intentional and tortious interference with prospective economic advantage; unfair competition under New York common law; violations of the California Unfair Competition Law, Business and Professional Code Section 17200 et. seq. (unfair competition); violations of New York General Business Law Section 349 (deceptive acts or practices); violations of New York General Business Law Sections 350 and 350-a (false advertising); conversion; and aiding and abetting breach of contract. The Company seeks, among other things, actual and compensatory damages, injunctive relief, and attorneys’ fees and costs. The Company subsequently amended its complaint (which, among other things, withdrew the count for aiding and abetting breach of contract and added a count for defamation). Beginning in September 2019, Compass filed a series of motions, which the Company opposed, including a motion to dismiss and a motion to compel arbitration with respect to certain claims involving Corcoran. In June 2020, having previously denied certain portions of Compass’ motion to dismiss, the Court denied the balance of the motion to dismiss, and denied as moot Compass’ motion to compel arbitration, granting the Company leave to amend the allegations in its complaint that relate to Corcoran’s exclusive listings in order to clarify the claims and damages sought in the action. The Company filed its amended complaint in July 2020. On December 18, 2020, the Court denied a motion to compel arbitration filed by Compass in September 2020 with respect to certain claims in the Company's amended complaint concerning or purportedly related to Corcoran and Sotheby’s International Realty, Inc. Compass subsequently filed an appellate brief appealing the Court's denial. On April 8, 2021, the Appellate Division denied Compass' request for a stay pending appeal. On January 28, 2021, Compass filed its answer to the Company’s amended complaint, as well as counterclaims and third-party claims against the Company and certain of its subsidiaries, alleging unfair competition, tortious interference with prospective business relations, defamation, injurious falsehoods, and misappropriation of trade secrets. The third-party claim names a Company-affiliated franchise brokerage and an independent contractor for that franchise. Compass seeks compensatory and punitive damages, injunctive relief, disgorgement of profits, interest and attorneys’ fees. Discovery in the case is continuing. On March 1, 2021, the Company filed a motion to dismiss (with respect to certain counterclaims) and a reply (to the remaining counts of the counterclaims). On April 22, 2021, pursuant to a stipulation of the parties, the Court ordered the dismissal without prejudice of Compass’s third-party claims and those counterclaims against the Company related to unfair competition under New York common law, conspiracy and misappropriation of trade secrets. * * * The Company is involved in certain other claims and legal actions arising in the ordinary course of our business. Such litigation, regulatory actions and other proceedings may include, but are not limited to, actions relating to intellectual property, commercial arrangements, indemnification (under contract or common law), franchising arrangements, the fiduciary duties of brokers, standard brokerage disputes like the failure to disclose accurate square footage or hidden defects in the property such as mold, vicarious liability based upon conduct of individuals or entities outside of our control, including franchisees and independent sales agents, antitrust and anti-competition claims (including claims related to NAR or MLS rules regarding buyer broker commissions), general fraud claims (including wire fraud associated with third-party diversion of funds from a brokerage transaction), claims under the False Claims Act (or similar state laws), consumer lending and debt collection law claims, employment law claims, including claims challenging the classification of independent sales agents as independent contractors, wage and hour related claims, and claims related to business actions responsive to the COVID-19 outbreak and governmental and regulatory directives thereto, and claims alleging violations of RESPA, state consumer fraud statutes or federal consumer protection statutes. While the results of such claims and legal actions cannot be predicted with certainty, we do not believe based on information currently available to us that the final outcome of current proceedings against the Company will have a material adverse effect on our consolidated financial position, results of operations or cash flows. In addition, with the increasing requirements resulting from government laws and regulations concerning data breach notifications and data privacy and protection obligations, claims associated with these laws may become more common. While most litigation involves claims against the Company, from time to time the Company commences litigation, including litigation against former employees, franchisees and competitors when it alleges that such persons or entities have breached agreements or engaged in other wrongful conduct. * * * Cendant Corporate Liabilities and Guarantees to Cendant and Affiliates Realogy Group (then Realogy Corporation) separated from Cendant on July 31, 2006 (the "Separation"), pursuant to a plan by Cendant (now known as Avis Budget Group, Inc.) to separate into four independent companies—one for each of Cendant's business units—real estate services (Realogy Group), travel distribution services ("Travelport"), hospitality services, including timeshare resorts ("Wyndham Worldwide"), and vehicle rental ("Avis Budget Group"). Pursuant to the Separation and Distribution Agreement dated as of July 27, 2006 among Cendant, Realogy Group, Wyndham Worldwide and Travelport (the "Separation and Distribution Agreement"), each of Realogy Group, Wyndham Worldwide and Travelport have assumed certain contingent and other corporate liabilities (and related costs and expenses), which are primarily related to each of their respective businesses. In addition, Realogy Group has assumed 62.5% and Wyndham Worldwide has assumed 37.5% of certain contingent and other corporate liabilities (and related costs and expenses) of Cendant. The due to former parent balance was $19 million at both March 31, 2021 and December 31, 2020. The due to former parent balance was comprised of the Company’s portion of the following: (i) Cendant’s remaining contingent tax liabilities, (ii) potential liabilities related to Cendant’s terminated or divested businesses, and (iii) potential liabilities related to the residual portion of accruals for Cendant operations. Tax Matters The Company is subject to income taxes in the United States and several foreign jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes and recording related assets and liabilities. In the ordinary course of business, there are many transactions and calculations where the ultimate tax determination is uncertain. The Company is regularly under audit by tax authorities whereby the outcome of the audits is uncertain. The Company believes there is appropriate support for positions taken on its tax returns. The liabilities that have been recorded represent the best estimates of the probable loss on certain positions and are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. However, the outcomes of tax audits are inherently uncertain. Escrow and Trust Deposits As a service to its customers, the Company administers escrow and trust deposits which represent undisbursed amounts received for the settlement of real estate transactions. Deposits at FDIC-insured institutions are insured up to $250 thousand. These escrow and trust deposits totaled $995 million at March 31, 2021 and $585 million at December 31, 2020, respectively. These escrow and trust deposits are not assets of the Company and, therefore, are excluded from the accompanying Condensed Consolidated Balance Sheets. However, the Company remains contingently liable for the disposition of these deposits. | ||
Loss Contingencies [Line Items] | |||
Cendant Spin-off Number of New Independent Companies | Independent_Companies | 4 | ||
Number of New Independent Companies per Cendant Business Unit | Independent_Companies | 1 | ||
Guaranty Arrangement Percentage of Obligations Assumed by Realogy | 62.50% | ||
Guaranty Arrangement Percentage of Obligations Assumed by Wyndham | 37.50% | ||
Due to former parent | $ 19,000 | $ 19,000 | |
Noninterest-bearing deposit liabilities | 995,000 | $ 585,000 | |
Maximum | |||
Loss Contingencies [Line Items] | |||
Cash, FDIC insured amount | $ 250 |
Segment Information - Revenues
Segment Information - Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | [1] | $ 1,547 | $ 1,168 |
Realogy Franchise Group | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | [1] | 254 | 220 |
Realogy Franchise Group | Royalties and Marketing Fees | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 79 | 58 | |
Realogy Brokerage Group | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | [1] | 1,171 | 869 |
Realogy Title Group | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | [1] | 201 | 137 |
Corporate and Other | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | [1],[2] | $ (79) | $ (58) |
[1] | Transactions between segments are eliminated in consolidation. Revenues for the Realogy Franchise Group include intercompany royalties and marketing fees paid by Realogy Brokerage Group of $79 million and $58 million for the three months ended March 31, 2021 and 2020, respectively. Such amounts are eliminated through the Corporate and Other line. | ||
[2] | Includes the elimination of transactions between segments. |
Segment Information - Operating
Segment Information - Operating EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2008 | Dec. 31, 2007 | ||
Segment Reporting Information [Line Items] | |||||||
Operating EBITDA | $ 162 | $ 32 | |||||
Depreciation and amortization | 51 | 45 | |||||
Interest expense, net | 38 | 101 | |||||
Income tax expense (benefit) | 17 | (141) | |||||
Restructuring costs, net | [1] | 5 | 12 | ||||
Impairments | [2] | 1 | 477 | ||||
Loss on the early extinguishment of debt | [3] | 17 | 0 | ||||
Net income (loss) attributable to Realogy Holdings and Realogy Group | 33 | (462) | |||||
Goodwill, Impairment Loss | $ (540) | $ (253) | $ (1,279) | $ (507) | |||
Cartus Relocation Services Reserves Recorded | (30) | ||||||
Other Asset Impairment Charges | 4 | ||||||
Realogy Franchise Group | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating EBITDA | 141 | 96 | |||||
Restructuring costs, net | 2 | 2 | |||||
Realogy Franchise Group | Indefinite life—Trademarks (b) | |||||||
Segment Reporting Information [Line Items] | |||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 30 | ||||||
Realogy Brokerage Group | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating EBITDA | (5) | (51) | |||||
Restructuring costs, net | 2 | 9 | |||||
Goodwill, Impairment Loss | (413) | ||||||
Realogy Title Group | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating EBITDA | 61 | 12 | |||||
Restructuring costs, net | 1 | ||||||
Corporate and Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating EBITDA | [4] | (35) | $ (25) | ||||
Restructuring costs, net | $ 1 | ||||||
[1] | The three months ended March 31, 2021 includes restructuring charges of $2 million at Realogy Franchise Group, $2 million at Realogy Brokerage Group and $1 million at Corporate and Other.The three months ended March 31, 2020 includes restructuring charges of $2 million at Realogy Franchise Group, $9 million at Realogy Brokerage Group and $1 million at Realogy Title Group. | ||||||
[2] | Impairments for the three months ended March 31, 2021 relate to lease asset impairments. Non-cash impairments for the three months ended March 31, 2020 include: • a goodwill impairment charge of $413 million related to Realogy Brokerage Group; • an impairment charge of $30 million related to Realogy Franchise Group's trademarks; • $30 million of impairment charges during the three months ended March 31, 2020 (while Cartus Relocation Services was held for sale) to reduce the net assets to the estimated proceeds; and • other asset impairments of $4 million primarily related to lease asset impairments. | ||||||
[3] | Loss on the early extinguishment of debt is recorded in Corporate and Other. | ||||||
[4] | Includes the elimination of transactions between segments. |