Cover Page
Cover Page - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 30, 2019 | Dec. 31, 2018 | |
Document Information [Line Items] | ||||
Document Type | 10-K | |||
Document Annual Report | true | |||
Document Period End Date | Dec. 31, 2019 | |||
Document Transition Report | false | |||
Entity File Number | 001-35674 | |||
Entity Registrant Name | REALOGY HOLDINGS CORP. | |||
Entity Tax Identification Number | 20-8050955 | |||
Entity Incorporation, State or Country Code | DE | |||
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 Well-known Seasoned Issuer | Yes | |||
Entity Voluntary Filers | No | |||
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 Public Float | $ 824 | |||
Entity Common Stock, Shares Outstanding | 114,379,296 | |||
Entity Central Index Key | 0001398987 | |||
Current Fiscal Year End Date | --12-31 | |||
Document Fiscal Year Focus | 2019 | |||
Document Fiscal Period Focus | FY | |||
Amendment Flag | false | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | |
Realogy Group LLC [Member] | ||||
Document Information [Line Items] | ||||
Entity File Number | 333-148153 | |||
Entity Registrant Name | REALOGY GROUP LLC | |||
Entity Tax Identification Number | 20-4381990 | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | Yes | |||
Entity Current Reporting Status | Yes | |||
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 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Revenues | ||||||
Net revenues | [1],[2] | $ 5,598 | $ 5,782 | $ 5,810 | [3] | |
Expenses | ||||||
Commission and other agent-related costs | 3,156 | 3,282 | 3,230 | |||
Operating | 1,345 | 1,351 | 1,344 | |||
Marketing | 262 | 256 | 258 | |||
General and administrative | 288 | 265 | 303 | |||
Former parent legacy cost (benefit), net | [4] | 1 | 4 | (10) | ||
Restructuring costs, net | [5],[6] | 42 | 47 | 12 | ||
Impairments | 249 | [7] | 0 | 0 | ||
Depreciation and amortization | 169 | [8] | 164 | 166 | [8] | |
Interest expense, net | 249 | 189 | 157 | |||
(Gain) loss on the early extinguishment of debt | [4] | (5) | 7 | 5 | ||
Other expense, net | 0 | 0 | 1 | |||
Total expenses | 5,756 | 5,565 | 5,466 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (158) | 217 | 344 | |||
Income tax (benefit) expense from continuing operations | [9] | (22) | 67 | (66) | ||
Equity in (earnings) losses of unconsolidated entities | (18) | 4 | (18) | |||
Net (loss) income from continuing operations | (118) | 146 | 428 | |||
(Loss) income from discontinued operations, net of tax | (7) | (6) | 6 | |||
Net (loss) income from discontinued operations | (67) | (6) | 6 | |||
Net (loss) income | (185) | 140 | 434 | |||
Less: Net income attributable to noncontrolling interests | (3) | (3) | (3) | |||
Net (loss) income attributable to Realogy Holdings and Realogy Group | $ (188) | $ 137 | $ 431 | |||
Basic (loss) earnings per share attributable to Realogy Holdings shareholders: | ||||||
Basic (loss) earnings per share from continuing operations | $ (1.06) | $ 1.15 | $ 3.11 | |||
Basic (loss) earnings per share from discontinued operations | (0.59) | (0.05) | 0.04 | |||
Basic (loss) earnings per share | (1.65) | 1.10 | 3.15 | |||
Diluted (loss) earnings per share from continuing operations | (1.06) | 1.14 | 3.07 | |||
Diluted (loss) earnings per share from discontinued operations | (0.59) | (0.05) | 0.04 | |||
Diluted (loss) earnings per share | $ (1.65) | $ 1.09 | $ 3.11 | |||
Weighted average common and common equivalent shares of Realogy Holdings outstanding: | ||||||
Basic | 114.2 | 124 | 136.7 | |||
Diluted | 114.2 | 125.3 | 138.4 | |||
Discontinued Operation, Provision for Loss (Gain) on Disposal, Net of Tax | $ (60) | $ 0 | $ 0 | |||
Net (loss) income from discontinued operations | (67) | (6) | 6 | |||
Gross Commission Income | ||||||
Revenues | ||||||
Net revenues | [10] | 4,330 | 4,533 | 4,576 | [3] | |
Service revenue | ||||||
Revenues | ||||||
Net revenues | [11] | 673 | 654 | 638 | [3] | |
Franchise fees | ||||||
Revenues | ||||||
Net revenues | [12] | 386 | 393 | 396 | [3] | |
Other | ||||||
Revenues | ||||||
Net revenues | [13] | $ 209 | $ 202 | $ 200 | [3] | |
[1] | Revenues for Realo gy Leads Group include intercompany referral commissions paid by Realogy Brokerage Group of $18 million for each of the years ended December 31, 2019, 2018 and 2017. Such amounts are recorded as contra-revenues by Realogy Brokerage Group. There are no other material intersegment transactions. | |||||
[2] | Transactions between segments are eliminated in consolidation. Revenues for Realogy Franchise Group include intercompany royalties and marketing fees paid by Realogy Brokerage Group of $293 million, $306 million and $311 million for the years ended December 31, 2019, 2018 and 2017, respectively. Such amounts are eliminated through the Corporate and Other line. | |||||
[3] | Amounts for the year ended December 31, 2017 have not been adjusted under the modified retrospective method. | |||||
[4] | Former parent legacy items and (Gain) loss on the early extinguishment of debt are recorded in Corporate and Other. | |||||
[5] | The year ended December 31, 2019 includes $38 million of expense related to the Facility and Operational Efficiencies Program and $4 million of expense related to prior restructuring programs. The years ended December 31, 2018 and December 31, 2017 relate to prior restructuring programs. | |||||
[6] | The year ended December 31, 2019 includes restructuring charges of $2 million at Realogy Franchise Group, $25 million at Realogy Brokerage Group, $3 million at Realogy Title Group, $2 million at Realogy Leads Group and $10 million at Corporate and Other. The year ended December 31, 2018 includes restructuring charges of $3 million at Realogy Franchise Group, $37 million at Realogy Brokerage Group, $4 million at Realogy Title Group and $3 million at Corporate and Other. The year ended December 31, 2017 includes restructuring charges of $1 million at Realogy Franchise Group, $9 million at Realogy Brokerage Group, $1 million at Realogy Title Group and $1 million at Corporate and Other. | |||||
[7] | Impairments for the year ended December 31, 2019 includes a goodwill impairment charge of $237 million at Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 2, "Summary of Significant Accounting Policies", for additional information). In addition, other impairment charges, primarily related to lease asset impairments, of $12 million were incurred for the year ended December 31, 2019. | |||||
[8] | Depreciation and amortization for the years ended December 31, 2018 and 2017 includes $2 million and $3 million, respectively, of amortization expense related to Guaranteed Rate Affinity's purchase accounting included in the "Equity in (earnings) losses of unconsolidated entities" line on the Consolidated Statement of Operations. | |||||
[9] | Income tax benefit for the year ended December 31, 2017 reflects the impact of the 2017 Tax Act. | |||||
[10] | Approximately 80% of the Company's total net revenues is related to gross commission income at Realogy Brokerage Group, which is recognized at a point in time at the closing of a homesale transaction. | |||||
[11] | Approximately 10% of the Company's total net revenues is related to service fees primarily consisting of title and escrow fees at Realogy Title Group, which are recognized at a point in time at the closing of a homesale transaction. | |||||
[12] | Approximately 7% of the Company's total net revenues is related to franchise fees at Realogy Franchise Group, primarily domestic royalties, which are recognized at a point in time when the underlying franchisee revenue is earned (upon close of the homesale transaction). | |||||
[13] | Less than 5% of the Company's total net revenues is related to other revenue, which comprised of brand marketing funds received at Realogy Franchise Group from franchisees, third-party listing fees and other miscellaneous revenues across all of the business segments. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (185) | $ 140 | $ 434 |
Currency translation adjustment | 0 | (3) | 3 |
Defined Benefit Plans: | |||
Actuarial loss for the plans | (8) | (6) | (1) |
Less: amortization of actuarial loss to periodic pension cost | (2) | (2) | (2) |
Defined benefit plans | (6) | (4) | 1 |
Other comprehensive (loss) income, before tax | (6) | (7) | 4 |
Income tax (benefit) expense related to items of other comprehensive income (loss) | (2) | (1) | 1 |
Other comprehensive (loss) income, net of tax | (4) | (6) | 3 |
Comprehensive (loss) income | (189) | 134 | 437 |
Less: comprehensive income attributable to noncontrolling interests | (3) | (3) | (3) |
Comprehensive (loss) income attributable to Realogy Holdings and Realogy Group | $ (192) | $ 131 | $ 434 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 235 | $ 203 | |
Restricted cash | 0 | 2 | |
Accounts Receivable, Allowance for Credit Loss, Current | 11 | 9 | |
Accounts Receivable, after Allowance for Credit Loss, Current | 79 | 85 | |
Other current assets | 147 | 140 | |
Total current assets | 750 | 338 | |
Total current assets | 1,211 | 768 | |
Property and equipment, net | 308 | 273 | |
Operating lease assets, net | 515 | 0 | |
Goodwill | 3,300 | 3,536 | |
Trademarks | 673 | 673 | |
Franchise agreements, net | 1,160 | 1,227 | |
Other intangibles, net | 72 | 80 | |
Other non-current assets | 304 | 272 | |
Non-current assets - held for sale | 0 | 461 | |
Total assets | 7,543 | 7,290 | [1] |
Current liabilities: | |||
Accounts payable | 84 | 83 | |
Current portion of long-term debt | 234 | 748 | |
Current portion of operating lease liabilities | 122 | 0 | |
Accrued expenses and other current liabilities | 350 | 344 | |
Current liabilities - held for sale | 356 | 352 | |
Total current liabilities | 1,146 | 1,527 | |
Long-term debt | 3,211 | 2,800 | |
Long-term operating lease liabilities | 467 | 0 | |
Deferred income taxes | 390 | 389 | |
Other non-current liabilities | 233 | 256 | |
Non-current liabilities - held for sale | 0 | 3 | |
Total liabilities | 5,447 | 4,975 | |
Commitments and contingencies (Note 15) | |||
Equity: | |||
Preferred Stock, Value, Issued | 0 | 0 | |
Common Stock, Value, Issued | 1 | 1 | |
Additional paid-in capital | 4,842 | 4,869 | |
Accumulated deficit | (2,695) | (2,507) | |
Accumulated other comprehensive loss | (56) | (52) | |
Total stockholders' equity | 2,092 | 2,311 | |
Noncontrolling interests | 4 | 4 | |
Total equity | 2,096 | 2,315 | |
Total liabilities and equity | $ 7,543 | $ 7,290 | |
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 | |
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 | 114,355,519 | 114,620,499 | |
[1] | The $552 million adjustment to Total assets due to the adoption of the new leasing standard consists of $414 million at Realogy Brokerage Group, $52 million at Corporate and Other, $46 million at Realogy Title Group and $40 million of assets held for sale related to the pending sale of Cartus' Relocation Services business. |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |||
Operating Activities | |||||
Net (loss) income | $ (185) | $ 140 | $ 434 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 67 | 6 | (6) | ||
Net (loss) income from continuing operations | (118) | 146 | 428 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||
Depreciation and amortization | 169 | [1] | 164 | 166 | [1] |
Deferred income taxes | (34) | 71 | (64) | ||
Impairments | 249 | [2] | 0 | 0 | |
Amortization of deferred financing costs and debt discount | 10 | 15 | 16 | ||
(Gain) loss on the early extinguishment of debt | (5) | 7 | 5 | ||
Equity in (earnings) losses of unconsolidated entities | (18) | 4 | (18) | ||
Stock-based compensation | 28 | 37 | 47 | ||
Mark-to-market adjustments on derivatives | 39 | 4 | (4) | ||
Other adjustments to net (loss) income | (3) | 0 | 0 | ||
Net change in assets and liabilities, excluding the impact of acquisitions and dispositions: | |||||
Trade receivables | 5 | 7 | (2) | ||
Other assets | 1 | (8) | (20) | ||
Accounts payable, accrued expenses and other liabilities | (11) | (43) | (4) | ||
Dividends received from unconsolidated entities | 52 | ||||
Other, net | 1 | (7) | (12) | ||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations, Total | 316 | 400 | 590 | ||
Net cash provided by (used in) operating activities from discontinued operations | 55 | (6) | 77 | ||
Net cash provided by operating activities | 371 | 394 | 667 | ||
Investing Activities | |||||
Property and equipment additions | (108) | (92) | (90) | ||
Payments for acquisitions, net of cash acquired | (1) | (1) | (18) | ||
Investment in unconsolidated entities | (12) | (15) | (55) | ||
Proceeds from investments in unconsolidated entities | 0 | 19 | 11 | ||
Other, net | 4 | 11 | 4 | ||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations, Total | (117) | (78) | (148) | ||
Net cash (used in) provided by investing activities from discontinued operations | (11) | (13) | 2 | ||
Net cash used in investing activities | (128) | (91) | (146) | ||
Financing Activities | |||||
Net change in Revolving Credit Facility | (80) | 200 | (130) | ||
Payments for refinancing of Term Loan B | 0 | (4) | 0 | ||
Proceeds from refinancing of Term Loan A & A-1 | 0 | 17 | 0 | ||
Proceeds from issuance of Senior Notes | 550 | 0 | 0 | ||
Redemption and repurchase of Senior Notes | (533) | 0 | 0 | ||
Amortization payments on term loan facilities | (30) | (25) | (42) | ||
Debt issuance costs | (9) | (16) | (6) | ||
Cash paid for fees associated with early extinguishment of debt | (5) | 0 | (1) | ||
Repurchase of common stock | (20) | (402) | (280) | ||
Dividends paid on common stock | (31) | (45) | (49) | ||
Proceeds from exercise of stock options | 0 | 1 | 8 | ||
Taxes paid related to net share settlement for stock-based compensation | (6) | (10) | (11) | ||
Payments of contingent consideration related to acquisitions | (3) | (22) | (22) | ||
Other, net | (25) | (25) | (30) | ||
Net Cash Provided by (Used in) Financing Activities, Continuing Operations, Total | (192) | (331) | (563) | ||
Net cash (used in) provided by financing activities from discontinued operations | (23) | 34 | (7) | ||
Net cash used in financing activities | (215) | (297) | (570) | ||
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 0 | (2) | 2 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 28 | 4 | (47) | ||
Cash, cash equivalents and restricted cash, beginning of period | 238 | 234 | 281 | ||
Cash, cash equivalents and restricted cash, end of period | 266 | 238 | 234 | ||
Less cash, cash equivalents and restricted cash of discontinued operations, end of period | 31 | 33 | 38 | ||
Cash, cash equivalents and restricted cash of continuing operations, end of period | 235 | 205 | 196 | ||
Supplemental Disclosure of Cash Flow Information | |||||
Interest payments for continuing operations | 201 | 176 | 165 | ||
Income tax (refunds) payments for continuing operations, net | $ (3) | $ 6 | $ 11 | ||
[1] | Depreciation and amortization for the years ended December 31, 2018 and 2017 includes $2 million and $3 million, respectively, of amortization expense related to Guaranteed Rate Affinity's purchase accounting included in the "Equity in (earnings) losses of unconsolidated entities" line on the Consolidated Statement of Operations. | ||||
[2] | Impairments for the year ended December 31, 2019 includes a goodwill impairment charge of $237 million at Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 2, "Summary of Significant Accounting Policies", for additional information). In addition, other impairment charges, primarily related to lease asset impairments, of $12 million were incurred for the year ended December 31, 2019. |
Consolidated Statements Of Equi
Consolidated Statements Of Equity (Deficit) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non- controlling Interests | |
Balance (in shares) at at Dec. 31, 2016 | 140,200,000 | ||||||
Balance at Dec. 31, 2016 | $ 2,469 | $ 1 | $ 5,565 | $ (3,062) | $ (40) | $ 5 | |
Net (loss) income | 434 | 431 | 3 | ||||
Other comprehensive income (loss) | $ 3 | 3 | [1] | ||||
Stock Repurchased and Retired During Period, Shares | (9,400,000) | (9,500,000) | |||||
Stock Repurchased and Retired During Period, Value | $ (280) | (280) | |||||
Exercise of stock options (in shares) | 300,000 | ||||||
Exercise of stock options | 8 | 8 | |||||
Stock-based compensation | 52 | 52 | |||||
Issuance of shares for vesting of equity awards | 1,000,000 | ||||||
Shares withheld for taxes on equity awards (in shares) | (400,000) | ||||||
Shares withheld for taxes on equity awards | (11) | (11) | |||||
Dividends, Common Stock, Cash | (49) | ||||||
Noncontrolling Interest, Dividends | (4) | ||||||
Dividends Total Equity | (53) | ||||||
Balance (in shares) at at Dec. 31, 2017 | 131,600,000 | ||||||
Balance at Dec. 31, 2017 | $ 2,622 | $ 1 | 5,285 | (2,631) | (37) | 4 | |
Dividends, Per Share | $ 0.36 | ||||||
Net (loss) income | $ 140 | 137 | 3 | ||||
Other comprehensive income (loss) | $ (6) | (6) | |||||
Stock Repurchased and Retired During Period, Shares | (17,900,000) | (17,900,000) | |||||
Stock Repurchased and Retired During Period, Value | $ (402) | (402) | |||||
Exercise of stock options (in shares) | 0 | ||||||
Exercise of stock options | 1 | 1 | |||||
Stock-based compensation | 40 | 40 | |||||
Issuance of shares for vesting of equity awards | 1,200,000 | ||||||
Shares withheld for taxes on equity awards (in shares) | (300,000) | ||||||
Shares withheld for taxes on equity awards | (10) | (10) | |||||
Dividends, Common Stock, Cash | (45) | ||||||
Noncontrolling Interest, Dividends | (3) | ||||||
Dividends Total Equity | $ (48) | ||||||
Balance (in shares) at at Dec. 31, 2018 | 114,620,499 | 114,600,000 | |||||
Balance at Dec. 31, 2018 | $ 2,315 | $ 1 | 4,869 | (2,507) | (52) | 4 | |
Dividends, Per Share | $ 0.36 | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (22) | (13) | (9) | ||||
Net (loss) income | (141) | ||||||
Balance at Sep. 30, 2019 | $ 2,140 | ||||||
Balance (in shares) at at Dec. 31, 2018 | 114,620,499 | 114,600,000 | |||||
Balance at Dec. 31, 2018 | $ 2,315 | $ 1 | 4,869 | (2,507) | (52) | 4 | |
Net (loss) income | (185) | (188) | 3 | ||||
Other comprehensive income (loss) | $ (4) | (4) | [1] | ||||
Stock Repurchased and Retired During Period, Shares | (1,200,000) | (1,200,000) | |||||
Stock Repurchased and Retired During Period, Value | $ (20) | (20) | |||||
Stock-based compensation | 30 | 30 | |||||
Issuance of shares for vesting of equity awards | 1,400,000 | ||||||
Shares withheld for taxes on equity awards (in shares) | (400,000) | ||||||
Shares withheld for taxes on equity awards | (6) | (6) | |||||
Dividends, Common Stock, Cash | (31) | ||||||
Noncontrolling Interest, Dividends | (3) | ||||||
Dividends Total Equity | $ (34) | ||||||
Balance (in shares) at at Dec. 31, 2019 | 114,355,519 | 114,400,000 | |||||
Balance at Dec. 31, 2019 | $ 2,096 | $ 1 | $ 4,842 | $ (2,695) | $ (56) | $ 4 | |
Dividends, Per Share | $ 0.27 | ||||||
[1] | As of December 31, 2019, the Company does not have any after-tax components of accumulated other comprehensive loss attributable to noncontrolling interests. |
Equity (Deficit)
Equity (Deficit) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive losses are as follows: Currency Translation Adjustments (1) Minimum Pension Liability Adjustment Accumulated Other Comprehensive Loss (2) Balance at January 1, 2017 $ (6) $ (34) $ (40) Other comprehensive income (loss) before reclassifications 3 (1) 2 Amounts reclassified from accumulated other comprehensive loss — 2 (3) 2 Income tax expense (1) — (1) Current period change 2 1 3 Balance at December 31, 2017 (4) (33) (37) Adoption of a new accounting pronouncement (1) (4) (8) (4) (9) Other comprehensive loss before reclassifications (3) (6) (9) Amounts reclassified from accumulated other comprehensive loss — 2 (3) 2 Income tax benefit — 1 1 Current period change (4) (11) (15) Balance at December 31, 2018 (8) (44) (52) Other comprehensive loss before reclassifications — (8) (8) Amounts reclassified from accumulated other comprehensive loss — 2 (3) 2 Income tax benefit — 2 2 Current period change — (4) (4) Balance at December 31, 2019 $ (8) $ (48) $ (56) _______________ (1) Assets and liabilities of foreign subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the balance sheet dates and equity accounts are translated at historical spot rates. Revenues and expenses are translated at average exchange rates during the periods presented. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars are included in accumulated other comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in the Consolidated Statements of Operations and primarily relate to discontinued operations. (2) As of December 31, 2019, the Company does not have any after-tax components of accumulated other comprehensive loss attributable to noncontrolling interests. (3) These amounts represent the amortization of actuarial loss to periodic pension cost and were reclassified from accumulated other comprehensive income to the general and administrative expenses line on the statement of operations. (4) These amounts represent adjustments for the adoption of the accounting standard update on stranded tax effects related to the 2017 Tax Act which resulted in a debit to Accumulated other comprehensive loss and a credit to Accumulated deficit of $9 million during the first quarter of 2018. |
Schedule of Stockholders Equity [Table Text Block] | Realogy Group Stockholder’s Equity Common Stock Additional Accumulated Accumulated Other Comprehensive Loss Non- Total Shares Amount Balance at January 1, 2017 — $ — $ 5,566 $ (3,062) $ (40) $ 5 $ 2,469 Net income — — — 431 — 3 434 Other comprehensive income — — — — 3 — 3 Repurchase of Common Stock — — (280) — — — (280) Contributions from Realogy Holdings — — 8 — — — 8 Stock-based compensation — — 41 — — — 41 Dividends — — (49) — — (4) (53) Balance at December 31, 2017 — $ — $ 5,286 $ (2,631) $ (37) $ 4 $ 2,622 Cumulative effect of adoption of new accounting pronouncements — — — (13) (9) — (22) Net income — — — 137 — 3 140 Other comprehensive loss — — — — (6) — (6) Repurchase of Common Stock — — (402) — — — (402) Contributions from Realogy Holdings — — 1 — — — 1 Stock-based compensation — — 30 — — — 30 Dividends — — (45) — — (3) (48) Balance at December 31, 2018 — $ — $ 4,870 $ (2,507) $ (52) $ 4 $ 2,315 Net (loss) income — — — (188) — 3 (185) Other comprehensive income — — — — (4) — (4) Repurchase of Common Stock — — (20) — — — (20) Stock-based compensation — — 24 — — — 24 Dividends — — (31) — — (3) (34) Balance at December 31, 2019 — $ — $ 4,843 $ (2,695) $ (56) $ 4 $ 2,096 |
Equity (Deficit) Accumulated Ot
Equity (Deficit) Accumulated Other Comprehensive Loss - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Beginning of Period Balance | $ (52) | |||||||
Income tax expense | (2) | $ (1) | $ 1 | |||||
Current period change | (4) | (6) | 3 | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (22) | $ (22) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (56) | (52) | ||||||
Dividends [Abstract] | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.09 | |||||||
Payments of Ordinary Dividends, Common Stock | 31 | 45 | 49 | |||||
Currency Translation Adjustments (1) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Beginning of Period Balance | [1] | (8) | (4) | (6) | ||||
Other comprehensive income (loss) before reclassifications | [1] | 0 | (3) | 3 | ||||
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | 0 | 0 | ||||
Income tax expense | [1] | 0 | 0 | (1) | ||||
Current period change | [1] | 0 | (4) | 2 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | [2] | (1) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | [1] | (8) | (8) | (4) | $ (6) | |||
Minimum Pension Liability Adjustment | Minimum | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Beginning of Period Balance | (44) | (33) | (34) | |||||
Other comprehensive income (loss) before reclassifications | (8) | (6) | (1) | |||||
Amounts reclassified from accumulated other comprehensive loss | [3] | 2 | 2 | 2 | ||||
Income tax expense | 2 | 1 | 0 | |||||
Current period change | (4) | (11) | 1 | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | [2] | (8) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (48) | (44) | (33) | (34) | ||||
Accumulated Other Comprehensive Loss (2) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Beginning of Period Balance | [4] | (52) | (37) | (40) | ||||
Other comprehensive income (loss) before reclassifications | [4] | (8) | (9) | 2 | ||||
Amounts reclassified from accumulated other comprehensive loss | [4] | 2 | 2 | 2 | ||||
Income tax expense | [4] | 2 | 1 | (1) | ||||
Current period change | (4) | [4] | (6) | 3 | [4] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | (9) | (9) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | [4] | $ (56) | (52) | $ (37) | $ (40) | |||
Accounting Standards Update 2018-02 | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 9 | |||||||
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Loss (2) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Current period change | [4] | $ (15) | ||||||
[1] | Assets and liabilities of foreign subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the balance sheet dates and equity accounts are translated at historical spot rates. Revenues and expenses are translated at average exchange rates during the periods presented. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars are included in accumulated other comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in the Consolidated Statements of Operations and primarily relate to discontinued operations. | |||||||
[2] | These amounts represent adjustments for the adoption of the accounting standard update on stranded tax effects related to the 2017 Tax Act which resulted in a debit to Accumulated other comprehensive loss and a credit to Accumulated deficit of $9 million during the first quarter of 2018. | |||||||
[3] | These amounts represent the amortization of actuarial loss to periodic pension cost and were reclassified from accumulated other comprehensive income to the general and administrative expenses line on the statement of operations. | |||||||
[4] | As of December 31, 2019, the Company does not have any after-tax components of accumulated other comprehensive loss attributable to noncontrolling interests. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data Revision - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2008 | Dec. 31, 2007 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Dec. 31, 2016 | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||||||||
Impairment of Goodwill | $ 1,153,000,000 | $ 489,000,000 | $ 237,000,000 | [1] | |||||||||||||||||||||||||
Impairments | $ 240,000,000 | $ 243,000,000 | 249,000,000 | [2] | $ 0 | $ 0 | |||||||||||||||||||||||
Costs And Expenses Including Interest And Other Income | 1,700,000,000 | 4,441,000,000 | 5,756,000,000 | 5,565,000,000 | 5,466,000,000 | ||||||||||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 15,000,000 | [3] | (150,000,000) | [3] | $ 95,000,000 | [3] | $ (118,000,000) | [3] | $ (22,000,000) | [4] | $ 130,000,000 | [4] | $ 167,000,000 | [4] | $ (58,000,000) | [4] | (173,000,000) | (158,000,000) | 217,000,000 | 344,000,000 | |||||||||
Income tax (benefit) expense from continuing operations | (23,000,000) | (22,000,000) | (22,000,000) | [5] | 67,000,000 | [5] | (66,000,000) | [5] | |||||||||||||||||||||
Net (loss) income | (112,000,000) | (141,000,000) | (185,000,000) | 140,000,000 | 434,000,000 | ||||||||||||||||||||||||
Net (loss) income attributable to Realogy Holdings and Realogy Group | $ (45,000,000) | $ (113,000,000) | $ 69,000,000 | $ (99,000,000) | $ (22,000,000) | $ 103,000,000 | $ 123,000,000 | $ (67,000,000) | $ (143,000,000) | $ (188,000,000) | $ 137,000,000 | $ 431,000,000 | |||||||||||||||||
Basic (loss) earnings per share | $ (0.39) | [6] | $ (0.99) | [6] | $ 0.60 | [6] | $ (0.87) | [6] | $ (0.19) | [7] | $ 0.84 | [7] | $ 0.97 | [7] | $ (0.51) | [7] | $ (1.25) | $ (1.65) | $ 1.10 | $ 3.15 | |||||||||
Diluted (loss) earnings per share | $ (0.39) | [6] | $ (0.99) | [6] | $ 0.60 | [6] | $ (0.87) | [6] | $ (0.19) | [7] | $ 0.83 | [7] | $ 0.96 | [7] | $ (0.51) | [7] | $ (1.25) | $ (1.65) | $ 1.09 | $ 3.11 | |||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (113,000,000) | $ (141,000,000) | $ (189,000,000) | $ 134,000,000 | $ 437,000,000 | ||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (114,000,000) | (143,000,000) | (192,000,000) | 131,000,000 | 434,000,000 | ||||||||||||||||||||||||
Goodwill | $ 3,300,000,000 | 3,300,000,000 | $ 3,536,000,000 | 3,300,000,000 | 3,300,000,000 | 3,536,000,000 | 3,534,000,000 | $ 3,514,000,000 | |||||||||||||||||||||
Total assets | 7,543,000,000 | 7,660,000,000 | 7,290,000,000 | [8] | 7,660,000,000 | 7,543,000,000 | 7,290,000,000 | [8] | $ 7,842,000,000 | [8] | |||||||||||||||||||
Deferred income taxes | 390,000,000 | 360,000,000 | 389,000,000 | 360,000,000 | 390,000,000 | 389,000,000 | |||||||||||||||||||||||
Total liabilities | 5,447,000,000 | 5,520,000,000 | 4,975,000,000 | 5,520,000,000 | 5,447,000,000 | 4,975,000,000 | 5,527,000,000 | ||||||||||||||||||||||
Accumulated deficit | (2,695,000,000) | (2,650,000,000) | (2,507,000,000) | (2,650,000,000) | (2,695,000,000) | (2,507,000,000) | |||||||||||||||||||||||
Total stockholders' equity | 2,092,000,000 | 2,136,000,000 | 2,311,000,000 | 2,136,000,000 | 2,092,000,000 | 2,311,000,000 | |||||||||||||||||||||||
Total equity | 2,096,000,000 | 2,140,000,000 | 2,315,000,000 | 2,140,000,000 | 2,096,000,000 | 2,315,000,000 | 2,622,000,000 | 2,315,000,000 | 2,469,000,000 | ||||||||||||||||||||
Total liabilities and equity | 7,543,000,000 | 7,660,000,000 | 7,290,000,000 | 7,660,000,000 | 7,543,000,000 | 7,290,000,000 | $ 7,842,000,000 | ||||||||||||||||||||||
Net (loss) income from continuing operations | (136,000,000) | (118,000,000) | 146,000,000 | 428,000,000 | |||||||||||||||||||||||||
Deferred income taxes | (29,000,000) | (34,000,000) | 71,000,000 | (64,000,000) | |||||||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | 230,000,000 | 371,000,000 | 394,000,000 | 667,000,000 | |||||||||||||||||||||||||
Goodwill, Impairment Loss, net of taxes | 180,000,000 | ||||||||||||||||||||||||||||
Realogy Brokerage Group | |||||||||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||||||||
Impairment of Goodwill | [1] | 237,000,000 | |||||||||||||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (38,000,000) | [3] | (231,000,000) | [3] | $ 25,000,000 | [3] | $ (80,000,000) | [3] | (37,000,000) | [4] | $ 22,000,000 | [4] | $ 45,000,000 | [4] | $ (76,000,000) | [4] | |||||||||||||
Goodwill | 669,000,000 | 906,000,000 | 669,000,000 | 906,000,000 | $ 904,000,000 | $ 893,000,000 | |||||||||||||||||||||||
Total assets | $ 1,448,000,000 | $ 1,228,000,000 | 1,448,000,000 | $ 1,228,000,000 | |||||||||||||||||||||||||
Goodwill, Impairment Loss, net of taxes | $ 180 | ||||||||||||||||||||||||||||
Previously Reported | |||||||||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||||||||
Impairments | 183,000,000 | 186,000,000 | |||||||||||||||||||||||||||
Costs And Expenses Including Interest And Other Income | 1,713,000,000 | 4,600,000,000 | |||||||||||||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (84,000,000) | (122,000,000) | |||||||||||||||||||||||||||
Income tax (benefit) expense from continuing operations | (8,000,000) | (9,000,000) | |||||||||||||||||||||||||||
Net (loss) income | (69,000,000) | (98,000,000) | |||||||||||||||||||||||||||
Net (loss) income attributable to Realogy Holdings and Realogy Group | $ (70,000,000) | $ (100,000,000) | |||||||||||||||||||||||||||
Basic (loss) earnings per share | $ (0.61) | $ (0.88) | |||||||||||||||||||||||||||
Diluted (loss) earnings per share | $ (0.61) | $ (0.88) | |||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (70,000,000) | $ (98,000,000) | |||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (71,000,000) | (100,000,000) | |||||||||||||||||||||||||||
Goodwill | 3,532,000,000 | 3,532,000,000 | |||||||||||||||||||||||||||
Total assets | 7,717,000,000 | 7,717,000,000 | |||||||||||||||||||||||||||
Deferred income taxes | 374,000,000 | 374,000,000 | |||||||||||||||||||||||||||
Total liabilities | 5,534,000,000 | 5,534,000,000 | |||||||||||||||||||||||||||
Accumulated deficit | (2,607,000,000) | (2,607,000,000) | |||||||||||||||||||||||||||
Total stockholders' equity | 2,179,000,000 | 2,179,000,000 | |||||||||||||||||||||||||||
Total equity | 2,183,000,000 | 2,183,000,000 | |||||||||||||||||||||||||||
Total liabilities and equity | 7,717,000,000 | 7,717,000,000 | |||||||||||||||||||||||||||
Net (loss) income from continuing operations | (98,000,000) | ||||||||||||||||||||||||||||
Deferred income taxes | (16,000,000) | ||||||||||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | 230,000,000 | ||||||||||||||||||||||||||||
Revision Adjustment | |||||||||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||||||||
Impairments | 57,000,000 | 57,000,000 | |||||||||||||||||||||||||||
Costs And Expenses Including Interest And Other Income | 57,000,000 | 57,000,000 | |||||||||||||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (57,000,000) | (57,000,000) | |||||||||||||||||||||||||||
Income tax (benefit) expense from continuing operations | (14,000,000) | (14,000,000) | |||||||||||||||||||||||||||
Net (loss) income | (43,000,000) | (43,000,000) | |||||||||||||||||||||||||||
Net (loss) income attributable to Realogy Holdings and Realogy Group | $ (43,000,000) | $ (43,000,000) | |||||||||||||||||||||||||||
Basic (loss) earnings per share | $ (0.38) | $ (0.37) | |||||||||||||||||||||||||||
Diluted (loss) earnings per share | $ (0.38) | $ (0.37) | |||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (43,000,000) | $ (43,000,000) | |||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (43,000,000) | (43,000,000) | |||||||||||||||||||||||||||
Goodwill | (57,000,000) | (57,000,000) | |||||||||||||||||||||||||||
Total assets | (57,000,000) | (57,000,000) | |||||||||||||||||||||||||||
Deferred income taxes | (14,000,000) | (14,000,000) | |||||||||||||||||||||||||||
Total liabilities | (14,000,000) | (14,000,000) | |||||||||||||||||||||||||||
Accumulated deficit | (43,000,000) | (43,000,000) | |||||||||||||||||||||||||||
Total stockholders' equity | (43,000,000) | (43,000,000) | |||||||||||||||||||||||||||
Total equity | (43,000,000) | (43,000,000) | |||||||||||||||||||||||||||
Total liabilities and equity | (57,000,000) | (57,000,000) | |||||||||||||||||||||||||||
Net (loss) income from continuing operations | (43,000,000) | ||||||||||||||||||||||||||||
Deferred income taxes | (14,000,000) | ||||||||||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | 0 | ||||||||||||||||||||||||||||
Before Discontinued Operations Adjustment | |||||||||||||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||||||||||||
Impairments | 240,000,000 | 243,000,000 | |||||||||||||||||||||||||||
Costs And Expenses Including Interest And Other Income | 1,770,000,000 | 4,657,000,000 | |||||||||||||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (141,000,000) | (179,000,000) | |||||||||||||||||||||||||||
Income tax (benefit) expense from continuing operations | (22,000,000) | (23,000,000) | |||||||||||||||||||||||||||
Net (loss) income | (112,000,000) | (141,000,000) | |||||||||||||||||||||||||||
Net (loss) income attributable to Realogy Holdings and Realogy Group | $ (113,000,000) | $ (143,000,000) | |||||||||||||||||||||||||||
Basic (loss) earnings per share | $ (0.99) | $ (1.25) | |||||||||||||||||||||||||||
Diluted (loss) earnings per share | $ (0.99) | $ (1.25) | |||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (113,000,000) | $ (141,000,000) | |||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (114,000,000) | (143,000,000) | |||||||||||||||||||||||||||
Goodwill | 3,475,000,000 | 3,475,000,000 | |||||||||||||||||||||||||||
Total assets | 7,660,000,000 | 7,660,000,000 | |||||||||||||||||||||||||||
Deferred income taxes | 360,000,000 | 360,000,000 | |||||||||||||||||||||||||||
Total liabilities | 5,520,000,000 | 5,520,000,000 | |||||||||||||||||||||||||||
Accumulated deficit | (2,650,000,000) | (2,650,000,000) | |||||||||||||||||||||||||||
Total stockholders' equity | 2,136,000,000 | 2,136,000,000 | |||||||||||||||||||||||||||
Total equity | 2,140,000,000 | 2,140,000,000 | |||||||||||||||||||||||||||
Total liabilities and equity | $ 7,660,000,000 | 7,660,000,000 | |||||||||||||||||||||||||||
Net (loss) income from continuing operations | (141,000,000) | ||||||||||||||||||||||||||||
Deferred income taxes | (30,000,000) | ||||||||||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ 230,000,000 | ||||||||||||||||||||||||||||
[1] | The Company recognized a goodwill impairment charge of $237 million during the third quarter of 2019 related to Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 20, "Selected Quarterly Financial Data", for additional information). | ||||||||||||||||||||||||||||
[2] | Impairments for the year ended December 31, 2019 includes a goodwill impairment charge of $237 million at Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 2, "Summary of Significant Accounting Policies", for additional information). In addition, other impairment charges, primarily related to lease asset impairments, of $12 million were incurred for the year ended December 31, 2019. | ||||||||||||||||||||||||||||
[3] | The quarterly results include the following: • restructuring charges of $9 million, $9 million, $11 million and $13 million in the first, second, third and fourth quarters, respectively; • a goodwill impairment charge of $237 million in the third quarter which reduced the net carrying value of Realogy Brokerage Group by $180 million after accounting for the related income tax benefit of $57 million and $1 million, $2 million, $3 million and $6 million of other impairment charges primarily related to lease asset impairments incurred in the first, second, third and fourth quarters, respectively; • former parent legacy net cost of $1 million in the third quarter; and | ||||||||||||||||||||||||||||
[4] | The quarterly results include the following : • restructuring charges of $22 million, $5 million, $9 million and $11 million in the first, second, third and fourth quarters, respectively; • former parent legacy net cost of $4 million in the fourth quarter; and | ||||||||||||||||||||||||||||
[5] | Income tax benefit for the year ended December 31, 2017 reflects the impact of the 2017 Tax Act. | ||||||||||||||||||||||||||||
[6] | Basic and diluted EPS amounts in each quarter are computed using the weighted-average number of shares outstanding during that quarter, while basic and diluted EPS for the full year is computed using the weighted-average number of shares outstanding during the year. Therefore, the sum of the four quarters’ basic or diluted EPS may not equal the full year basic or diluted EPS (see Note 17 "Earnings (Loss) Per Share" for further information). (d) As a result of the pending sale of Cartus Relocation Services, the Company met held for sale requirements under ASC 360 and discontinued operations under ASC 205 in the fourth quarter of 2019. Therefore, amounts presented in the Company's Form 10-Qs for the periods prior to the fourth quarter of 2019 did not reflect discontinued operations, but have been adjusted to reflect discontinued operations in the tables above. | ||||||||||||||||||||||||||||
[7] | Basic and diluted EPS amounts in each quarter are computed using the weighted-average number of shares outstanding during that quarter, while basic and diluted EPS for the full year is computed using the weighted-average number of shares outstanding during the year. Therefore, the sum of the four quarters’ basic or diluted EPS may not equal the full year basic or diluted EPS. (d) As a result of the pending sale of Cartus Relocation Services, the Company met held for sale requirements under ASC 360 and discontinued operations under ASC 205 in the fourth quarter of 2019. Therefore, amounts presented in the Company's Form 10-Qs for the periods prior to the fourth quarter of 2019 did not reflect discontinued operations, but have been adjusted to reflect discontinued operations in the tables above. | ||||||||||||||||||||||||||||
[8] | The $552 million adjustment to Total assets due to the adoption of the new leasing standard consists of $414 million at Realogy Brokerage Group, $52 million at Corporate and Other, $46 million at Realogy Title Group and $40 million of assets held for sale related to the pending sale of Cartus' Relocation Services business. |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 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 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 consolidated financial statements. The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America. All intercompany balances and transactions have been eliminated. On November 6, 2019, the Company entered into a Purchase and Sale Agreement (the "Purchase Agreement") with a subsidiary of SIRVA, Inc. ("SIRVA"). Pursuant to the Purchase Agreement, Realogy has agreed to sell its Cartus Relocation Services business, held by Cartus Corporation, an indirect subsidiary of the Company (“Cartus”) to SIRVA. Subject to the terms and conditions of the Purchase Agreement, and following the completion of certain restructuring steps to separate from Cartus the affinity, broker-to-broker referral, and broker network management businesses that Realogy will retain under the name Realogy Leads Group, SIRVA will purchase all of the outstanding equity interests in Cartus for an aggregate purchase price of $400 million, consisting of $375 million in cash payable at the closing of the transaction, subject to certain adjustments set forth in the Purchase Agreement, and a $25 million deferred payment payable after the closing. The transaction is expected to close in the next couple of months, subject to satisfaction or waiver of the closing conditions set forth in the Purchase Agreement. As a result, the Company met the requirements of ASC 360 to report the operating results of the Cartus Relocation Services business as discontinued operations, and reflected the (loss) income in "Net (loss) income from discontinued operations" on the Consolidated Statements of Operations for all periods presented. In addition, the related assets and liabilities as of November 6, 2019 have been reported as assets and liabilities held for sale in the Consolidated Balance Sheets. The cash flows related to discontinued operations have been segregated and are included in the Consolidated Statements of Cash Flows. Unless otherwise noted, discussion within these notes to the consolidated financial statements relates only to continuing operations. Refer to Note 3, "Discontinued Operations", for additional information related to discontinued operations. Business Description The Company reports its operations in the following four business segments (the number of offices and agents are unaudited): • Realogy Franchise Group (formerly referred to as Real Estate Franchise Services, or RFG)—franchises the Century 21 ® , Coldwell Banker ® , Coldwell Banker Commercial ® , Corcoran ® , ERA ® , Sotheby's International Realty ® and Better Homes and Gardens ® Real Estate brand names. As of December 31, 2019, our real estate franchise systems and proprietary brands had approximately 302,400 independent sales agents worldwide, including approximately 189,900 independent sales agents operating in the U.S. (which included approximately 52,200 company owned brokerage independent sales agents). As of December 31, 2019, our real estate franchise systems and proprietary brands had approximately 18,500 offices worldwide in 114 countries and territories, including approximately 5,900 brokerage offices in the U.S. ( which included approximately 710 company owned brokerage offices). • Realogy Brokerage Group (formerly referred to as Company Owned Real Estate Brokerage Services, or NRT)—operates a full-service real estate brokerage business with approximately 710 owned and operated brokerage offices with approximately 52,200 independent sales agents principally under the Coldwell Banker ® , Corcoran ® and Sotheby’s International Realty ® brand names in many of the largest metropolitan areas in the U.S. • Realogy Title Group (formerly referred to as Title and Settlement Services, or TRG)—provides full-service title and settlement services to real estate companies, affinity groups, corporations and financial institutions with many of these services provided in connection with the Company's real estate brokerage. This segment also includes the Company's share of equity earnings and losses for our Guaranteed Rate Affinity mortgage origination joint venture. • Realogy Leads Group (previously formed part of Relocation Services)—Realogy Leads Group consists of affinity programs (both company- and client-directed) as well as broker-to-broker referrals. Through its highly concentrated affinity business, this segment has traditionally provided and continues to provide assistance with residential real estate transactions to members of affinity clients. Referrals from affinity programs are handled by the Realogy Broker Network. Member brokers of the Realogy Broker Network, including certain franchisees and company owned brokerages, have traditionally received referrals from the Cartus Relocation Services, Realogy Leads Group and from each other through broker-to-broker referrals in exchange for a referral fee. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES USE OF ESTIMATES In presenting the consolidated financial statements, management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ materially from those estimates. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results when the business is sold and classified as held for sale, in accordance with the criteria of Accounting Standard Codification (“ASC”) Topic 205 Presentation of Financial Statements ("ASC 205") and ASC Topic 360 Property, Plant and Equipment (“ASC 360”). Assets and liabilities of a business classified as held for sale are recorded at the lower of its carrying amount or estimated fair value less cost to sell and depreciation ceases on the date that the held for sale criteria are met. If the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized. Assets and liabilities related to a business classified as held for sale are segregated in the current and prior balance sheets in the period in which the business is classified as held for sale. The results of discontinued operations are reported in "Net (loss) income from discontinued operations" in the accompanying Consolidated Statements of Operations for the current and prior periods commencing in the period in which the business meets the criteria, and includes any gain or loss recognized on closing, or adjustment of the carrying amount to fair value less cost to sell. Transactions between the businesses held for sale and businesses held for use that are expected to continue to exist after the disposal are not eliminated to appropriately reflect the continuing operations and balances held for sale. See Note 3, "Discontinued Operations", for further discussion. LEASES See Note 4, "Leases", for discussion. REVENUE RECOGNITION See Note 5, "Revenue Recognition", for discussion. CONSOLIDATION The Company consolidates any variable interest entity ("VIE") for which it is the primary beneficiary with a controlling financial interest. Also, the Company consolidates an entity not deemed a VIE if its ownership, direct or indirect, exceeds 50% of the outstanding voting shares of an entity and/or it has the ability to control the financial or operating policies through its voting rights, board representation or other similar rights. For entities where the Company does not have a controlling interest (financial or operating), the investments in such entities are accounted for using the equity method or at fair value with changes in fair value recognized in net income, as appropriate. The Company applies the equity method of accounting when it has the ability to exercise significant influence over operating and financial policies of an investee. The Company measures all other investments at fair value with changes in fair value recognized in net income or in the case that an equity investment does not have readily determinable fair values, at cost minus impairment (if any) plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. CASH AND CASH EQUIVALENTS The Company considers highly liquid investments with remaining maturities not exceeding three months at the date of purchase to be cash equivalents. 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 developments 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. ADVERTISING EXPENSES Advertising costs are generally expensed in the period incurred. Advertising expenses, recorded within the marketing expense line item on the Company’s Consolidated Statements of Operations, were approximately $196 million, $207 million and $211 million for the years ended December 31, 2019, 2018 and 2017, respectively. DEBT ISSUANCE COSTS Debt issuance costs include costs incurred in connection with obtaining debt and extending existing debt. These financing costs are presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount, with the exception of the debt issuance costs related to the Revolving Credit Facility which are classified as a deferred financing asset within other assets. The debt issuance costs are amortized via the effective interest method and the amortization period is the life of the related debt. INCOME TAXES The Company’s provision for income taxes is determined using the asset and liability method, under which deferred tax assets and liabilities are calculated based upon the temporary differences between the financial statement and income tax bases of assets and liabilities using currently enacted tax rates. These differences are based upon estimated differences between the book and tax basis of the assets and liabilities for the Company. Certain tax assets and liabilities of the Company may be adjusted in connection with the finalization of income tax audits. The Company’s deferred tax assets are recorded net of a valuation allowance when, based on the weight of available evidence, it is more likely than not that all or some portion of the recorded deferred tax balances will not be realized in future periods. Decreases to the valuation allowance are recorded as reductions to the Company’s provision for income taxes and increases to the valuation allowance result in additional provision for income taxes. DERIVATIVE INSTRUMENTS The Company records derivatives and hedging activities on the balance sheet at their respective fair values. The Company uses interest rate swaps to manage its exposure to future interest rate volatility associated with its variable rate borrowings. The Company has not elected to utilize hedge accounting for these instruments; therefore, any change in fair value is recorded in the Consolidated Statements of Operations. However, the fluctuations in the value of these instruments generally offset the impact of changes in the value of the underlying risk that they are intended to economically hedge. See Note 18, "Risk Management and Fair Value of Financial Instruments", for further discussion. INVESTMENTS Guaranteed Rate Affinity, LLC ("Guaranteed Rate Affinity") originates and markets its mortgage lending services to the Company's real estate brokerage as well as other real estate brokerage companies across the country. Guaranteed Rate, Inc. ("Guaranteed Rate") owns a controlling 50.1% stake of Guaranteed Rate Affinity and the Company owns 49.9%. The Company has certain governance rights related to the joint venture, however it does not have co ntrol of the day-to-day operations of Guaranteed Rate Affinity. During the first quarter of 2018, the Company's interest in PHH Home Loans LLC ("PHH Home Loans") , the Company's former 49.9% mortgage joint venture, was sold to a subsidiary of PHH Corporation and the Company received net cash proceeds of $19 million reducing the investment balance in PHH Home Loans to zero. Guaranteed Rate Affinity began doing business in August 2017 on a phased-in basis. The equity earnings or losses related to PHH Home Loans were included in the financial results of Realogy Brokerage Group and the equity earnings or losses related to Guaranteed Rate Affinity are included in the financial results of Realogy Title Group. At December 31, 2019 and 2018, the Company had various equity method investments aggregating $69 million and $51 million, respectively, which are recorded within other non-current assets on the accompanying Consolidated Balance Sheets. The $69 million investment balance at December 31, 2019 included $60 million for the Company's investment in Guaranteed Rate Affinity. The $51 million investment balance at December 31, 2018 included $43 million for the Company's investment in Guaranteed Rate Affinity. For the year ended December 31, 2019, the Company recorded equity earnings of $18 million at Realogy Title Group primarily related to earnings from the operations of Guaranteed Rate Affinity. For the year ended December 31, 2018, the Company recorded equity losses of $4 million at Realogy Title Group primarily related to losses from the operations of Guaranteed Rate Affinity. For the year ended December 31, 2017, the Company recorded equity earnings of $18 million which consisted of $35 million of earnings from the sale of PHH Home Loans' assets to Guaranteed Rate Affinity, partially offset by $7 million of exit costs and losses of $6 million from the continuing operations of PHH Home Loans. In addition, there was a $4 million loss from equity method investments at Realogy Title Group primarily related to costs associated with the start up of operations of Guaranteed Rate Affinity, including $3 million of amortization of intangible assets recorded in purchase accounting. The Company received $3 million, $3 million and $63 million in cash dividends from equity method investments during the years ended December 31, 2019, 2018 and 2017, respectively. The Company invested $2 million, $4 million and $55 million of cash into Guaranteed Rate Affinity during the years ended December 31, 2019, 2018 and 2017, respectively. PROPERTY AND EQUIPMENT Property and equipment (including leasehold improvements) are initially recorded at cost, net of accumulated depreciation and amortization. Depreciation, recorded as a component of depreciation and amortization on the Consolidated Statements of Operations, is computed utilizing the straight-line method over the estimated useful lives of the related assets. Amortization of leasehold improvements, also recorded as a component of depreciation and amortization, is computed utilizing the straight-line method over the estimated benefit period of the related assets or the lease term, if shorter. Useful lives are 30 years for buildings, up to 20 years for leasehold improvements, and from 3 to 7 years for furniture, fixtures and equipment. The Company capitalizes the costs of software developed for internal use which commences during the development phase of the project. The Company amortizes software developed or obtained for internal use on a straight-line basis, generally from 1 to 5 years, when such software is ready for use. The net carrying value of software developed or obtained for internal use was $97 million and $93 million at December 31, 2019 and 2018, respectively. IMPAIRMENT OF GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS Goodwill represents the excess of acquisition costs over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Other indefinite-lived intangible assets primarily consist of trademarks acquired in business combinations. Goodwill and other indefinite-lived assets are not amortized, but are subject to impairment testing. The aggregate carrying values of our goodwill and other indefinite-lived intangible assets were $3,300 million and $692 million, respectively, at December 31, 2019 and are subject to an impairment assessment annually as of October 1, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. This assessment compares carrying values of the goodwill reporting units and other indefinite lived intangible assets to their respective fair values and, when appropriate, the carrying value is reduced to fair value. In testing goodwill, the fair value of each reporting unit is estimated using the income approach, a discounted cash flow approach. For the other indefinite lived intangible assets, fair value is estimated using the relief from royalty method. Management utilizes long-term cash flow forecasts and the Company's annual operating plans adjusted for terminal value assumptions. The fair value of the Company's reporting units and other indefinite lived intangible assets are determined utilizing the best estimate of future revenues, operating expenses including commission expense, market and general economic conditions, trends in the industry, as well as assumptions that management believes marketplace participants would utilize including discount rates, cost of capital, trademark royalty rates, and long-term growth rates. The trademark royalty rate was determined by reviewing similar trademark agreements with third parties. Although management believes that assumptions are reasonable, actual results may vary significantly. These impairment assessments involve the use of accounting estimates and assumptions, changes in which could materially impact our financial condition or operating performance if actual results differ from such estimates and assumptions. To address this uncertainty, a sensitivity analysis is performed on key estimates and assumptions. During the third quarter of 2019, management determined that the decrease in the stock price of the Company and the impact on future earnings related to the discontinuation of the USAA affinity program qualified as triggering events for all of its reporting units and accordingly management performed an impairment assessment of goodwill and other indefinite-lived intangible assets as of September 1, 2019. The impairment assessment indicated that the carrying value of Realogy Broker age Group exceeded its estimated fair value by $180 million primarily as a result of a reduction in Realogy Broker age Group's long-term forecast. Accounting Standard Update No. 2017-04 (Topic 350), "Simplifying the Test of Goodwill Impairment", which the Company early adopted in the third quarter of 2019, requires that the impairment charge and deferred tax effect are calculated using the simultaneous equation method which effectively grosses up the goodwill impairment charge to account for the related tax benefit so that the resulting carrying value does not exceed the calculated fair value. As a result, management recognized a goodwill impairment charge to reduce goodwill at Realogy Brokerage Group by $237 million offset by an income tax benefit of $57 million resulting in a net reduction in carrying value of $180 million. The results of the Company's interim impairment test indicated no other impairment charges were required for the other reporting units or other indefinite-lived intangibles. Management evaluated the effect of lowering the estimated fair value for each of the passing reporting units by 10% and determined no impairment of goodwill or other indefinite-lived intangible assets would have been recognized under this evaluation. Based upon the impairment assessment performed in the fourth quarter of 2019, 2018 and 2017, there was no impairment of goodwill or other indefinite-lived intangible assets for these years. Management evaluated the effect of lowering the estimated fair value for each of the passing reporting units by 10% and determined no impairment of goodwill or other indefinite-lived intangible assets would have been recognized under this evaluation for 2018 or 2017. The Company evaluates the recoverability of its other long-lived assets, including amortizable intangible assets, if circumstances indicate an impairment may have occurred. This assessment is performed by comparing the respective carrying values of the assets to the current and expected future cash flows, on an undiscounted basis, to be generated from such assets. If such assessment indicates that the carrying value of these assets is not recoverable, then the carrying value of such assets is reduced to fair value through a charge to the Company’s Consolidated Statements of Operations. STOCK-BASED COMPENSATION The Company grants stock-based awards to certain senior management, employees and directors including non-qualified stock options, restricted stock units and performance share units . The fair value of non-qualified stock options is estimated using the Black-Scholes option pricing model on the grant date and is recognized as expense over the service period based on the vesting requirements. The fair value of restricted stock units and performance share units without a market condition is measured based on the closing price of the Company's common stock on the grant date and is recognized as expense over the service period of the award, or when requisite performance metrics or milestones are probable of being achieved . The fair value of awards with a market condition are estimated using the Monte Carlo simulation method and expense is recognized on a straight-line basis over the requisite service period of the award. The Company recognizes forfeitures as they occur. Determining the fair value of stock-based awards at the grant date requires considerable judgment, including estimating expected volatility and expected term, risk-free rate. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Adoption of the New Leasing Standard In February 2016, the FASB issued Accounting Standard Update No. 2016-02 (Topic 842) "Leases" (the "new leasing standard") which requires virtually all leases to be recognized on the balance sheet. Effective January 1, 2019, the Company adopted the new leasing standard using the modified retrospective transition approach with optional transition relief and recognized the cumulative effect of applying the new leasing standard to existing contracts on the balance sheet on January 1, 2019. Therefore, results for reporting periods beginning after January 1, 2019 are presented under the new leasing standard; however, the comparative prior period amounts have not been restated and continue to be reported in accordance with historical accounting under ASC Topic 840. The most significant effects of adoption of the new leasing standard relate to the recognition of new right-of-use assets and lease liabilities on the balance sheet for operating leases. The new leasing standard did not impact our Consolidated Statement of Operations and Consolidated Statement of Cash Flows. The impact of the changes to the Consolidated Balance Sheets for the adoption of the new leasing standard were as follows: Balance Sheet accounts prior to the new leasing standard adoption adjustments Adjustments due to the adoption of the new leasing standard Balance Sheet accounts after the new leasing standard adoption adjustments ASSETS Current assets: Other current assets $ 140 $ (13) $ 127 Current assets - held for sale 338 (1) 337 Total current assets 768 (14) 754 Operating lease assets, net — 525 525 Other non-current assets 272 — 272 Non-current assets - held for sale 461 41 502 Total assets (a) $ 7,290 $ 552 $ 7,842 LIABILITIES AND EQUITY Current liabilities: Current portion of operating lease liabilities $ — $ 126 $ 126 Accrued expenses and other current liabilities 344 (12) 332 Current liabilities - held for sale 352 — 352 Total current liabilities 1,527 114 1,641 Long-term operating lease liabilities — 458 458 Other non-current liabilities 256 (60) 196 Non-current liabilities - held for sale 3 40 43 Total liabilities 4,975 552 5,527 Total equity 2,315 — 2,315 Total liabilities and equity $ 7,290 $ 552 $ 7,842 _______________ (a) The $552 million adjustment to Total assets due to the adoption of the new leasing standard consists of $414 million at Realogy Brokerage Group, $52 million at Corporate and Other, $46 million at Realogy Title Group and $40 million of assets held for sale related to the pending sale of Cartus' Relocation Services business. The Company elected a package of practical expedients that were consequently applied to all leases. The Company did not reassess whether expired or existing contracts contain leases under the new definition of a lease, lease classification for expired or existing leases, nor whether previously capitalized initial direct costs would qualify for capitalization under the new standard. Upon transition, the Company did not elect to use hindsight with respect to lease renewals and purchase options when accounting for existing leases, as well as assessing the impairment of right-of-use assets. Therefore, lease terms largely remained unchanged. In addition, the Company elected the short-term lease recognition exemption and did not recognize a lease obligation and right-of-use asset on its balance sheet for all leases with terms of 12 months or less. The Company elected the practical expedient to combine lease and non-lease components in total gross rent for all of its leases which resulted in a larger lease liability recorded on the balance sheet. Adoption of Other Accounting Pronouncements In January 2017, the FASB issued Accounting Standard Update No. 2017-04 (Topic 350), "Simplifying the Test of Goodwill Impairment." This update simplifies how the Company is required to test goodwill for impairment by eliminating step two, which requires a hypothetical purchase price allocation, from the goodwill impairment test. Under the new guidance, a goodwill impairment will equal the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance requires that the impairment charge and deferred tax effect are calculated using the simultaneous equation method which effectively grosses up the goodwill impairment charge to account for the related tax benefit so that the resulting carrying value does not exceed the calculated fair value. The standard is effective for interim or annual goodwill impairment tests during fiscal years beginning after December 15, 2019, with early adoption permitted, and should be applied prospectively. The Company elected to early adopt this standard as of September 1, 2019. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS The Company considers the applicability and impact of all Accounting Standards Updates. 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. |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | 3. DISCONTINUED OPERATIONS The Company entered into the Purchase Agreement on November 6, 2019 (the "Purchase Agreement"), pursuant to which SIRVA will acquire Cartus Relocation Services, the Company's global employee relocation business. Under the terms of the Purchase Agreement, the Company will receive $375 million in cash at closing, subject to certain adjustments set forth in the Purchase Agreement, and a $25 million deferred payment after the closing of the transaction. The $375 million purchase price is subject to adjustments for cash, indebtedness, working capital, securitization obligations and other items, as defined and described in the Purchase Agreement. The transaction is expected to close in the next couple of months, subject to the satisfaction of closing conditions described in the Purchase Agreement. The transaction includes all of Cartus Relocation Services, but does not include Realogy Leads Group. Realogy Leads Group is comprised of the Company's affinity and broker-to-broker business, as well as the broker network made up of agents and brokers from Realogy’s residential real estate brands and certain independent real estate brokers (which was formerly referred to as the Cartus Broker Network). As a result of the pending transaction, the Company met the requirements under ASC 360 and ASC 205 and accordingly the assets and liabilities of Cartus Relocation Services are classified as held for sale in the Consolidated Balance Sheets and the operating results of Cartus Relocation Services are reported as discontinued operations and reflected in "Net (loss) income from discontinued operations" on the Consolidated Statements of Operations for all periods presented. The cash flows related to discontinued operations have been segregated and are included in the Consolidated Statements of Cash Flows. The following table summarizes the operating results of discontinued operations described above and reflected within "Net (loss) income from discontinued operations" in the Company’s Consolidated Statements of Operations for each of the periods presented: Year Ended December 31, 2019 2018 2017 Net revenues $ 272 $ 297 $ 304 Total expenses 281 305 297 (Loss) income from discontinued operations (9) (8) 7 Estimated loss on the sale of discontinued operations (a) (22) — — Income tax expense (benefit) from discontinued operations (b) 36 (2) 1 Net (loss) income from discontinued operations $ (67) $ (6) $ 6 _______________ (a) Adjustment to record assets and liabilities held for sale at the lower of carrying value or fair value less any costs to sell based on the Purchase Agreement. (b) Income tax expense for the year ended December 31, 2019 relates to tax expense as a result of the expected taxable gain on the sale of Cartus Relocation Services, primarily as a result of the Company's low tax basis in goodwill, trademarks and other intangibles. Assets and liabilities held for sale related to discontinued operations presented in the Consolidated Balance Sheets at December 31, 2019 and 2018 are as follows: December 31, 2019 (a) 2018 Carrying amounts of the major classes of assets held for sale Cash and cash equivalents $ 28 $ 22 Restricted cash 3 11 Trade receivables 46 61 Relocation receivables 203 231 Other current assets 12 13 Total current assets 338 Property and equipment, net 36 31 Operating lease assets, net 36 — Goodwill 176 176 Trademarks 76 76 Other intangibles, net 156 174 Other non-current assets — 4 Total non-current assets 461 Allowance for reduction of assets held for sale (b) (22) Total assets classified as held for sale $ 750 $ 799 Carrying amounts of the major classes of liabilities held for sale Accounts payable $ 53 $ 64 Securitization obligations 206 231 Current portion of operating lease liabilities 6 — Accrued expenses and other current liabilities 62 57 Total current liabilities 352 Long-term operating lease liabilities 29 — Other non-current liabilities — 3 Total non-current liabilities 3 Total liabilities classified as held for sale $ 356 $ 355 _______________ (a) The assets and liabilities of Cartus Relocation Services are classified as current on the December 31, 2019 balance sheet because it is probable that the sale will occur and proceeds will be collected within one year. (b) Adjustment to record assets and liabilities held for sale at the lower of carrying value or fair value less any costs to sell based on the Purchase Agreement. Securitization Obligations Securitization Obligations in the table above are further broken out as follows: December 31, 2019 2018 Securitization Obligations: Apple Ridge Funding LLC $ 195 $ 218 Cartus Financing Limited 11 13 Total Securitization Obligations $ 206 $ 231 Realogy Group has secured obligations through Apple Ridge Funding LLC under a securitization program which expires in June 2020. As of December 31, 2019, the Company had $250 million of borrowing capacity under the Apple Ridge Funding LLC securitization program with $195 million being utilized leaving $55 million of available capacity. 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 2020. As of December 31, 2019, there were $11 million of outstanding borrowings under the facilities leaving $9 million of available capacity. 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. 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 business 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 our relocation business. Certain of the funds that Realogy Group receives from relocation receivables and related assets must be utilized to repay securitization obligations. These obligations were collateralized by $200 million and $238 million of underlying relocation receivables and other related relocation assets at December 31, 2019 and 2018, respectively. Substantially all relocation related assets are realized in less than twelve months from the transaction date. Interest incurred in connection with borrowings under these facilities amounted to $8 million and $9 million for the years ended December 31, 2019 and 2018, respectively. These securitization obligations represent floating rate debt for which the average weighted interest rate was 4.2% and 3.8% for the years ended December 31, 2019 and 2018, respectively. |
Leases Lessee Disclosure (Notes
Leases Lessee Disclosure (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | LEASES The Company's lease portfolio consists primarily of office space and equipment. The Company has approximately 1,100 real estate leases with lease terms ranging from less than 1 year to 17 years and includes the Company's brokerage sales offices, regional and branch offices for our title and relocation businesses, corporate headquarters, regional headquarters, and facilities serving as local administration, training and storage. The Company's brokerage sales offices are generally located in shopping centers and small office parks, typically with lease terms of 1 year to 5 years. In addition, the Company has equipment leases which primarily consist of furniture, computers and other office equipment. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. At lease commencement, the Company records a liability for its lease obligation measured at the present value of future lease payments and a right-of-use asset equal to the lease liability adjusted for prepayments and lease incentives. The Company uses its collateralized incremental borrowing rate to calculate the present value of lease liabilities as most of its leases do not provide an implicit rate that is readily determinable. The Company does not recognize a lease obligation and right-of-use asset on its balance sheet for any leases with an initial term of 12 months or less. Some real estate leases include one or more options to renew or terminate a lease. The exercise of a lease renewal or termination option is assessed at commencement of the lease and only reflected in the lease term if the Company is reasonably certain to exercise the option. The Company has lease agreements that contain both lease and non-lease components, such as common area maintenance fees, and has made a policy election to combine both fixed lease and non-lease components in total gross rent for all of its leases. Expense for operating leases is recognized on a straight-line basis over the lease term. Finance lease assets are amortized on a straight-line basis over the shorter of the estimated useful life of the underlying asset or the lease term. The interest component of a finance lease is included in interest expense and recognized using the effective interest method over the lease term. Supplemental balance sheet information related to the Company's leases was as follows: Lease Type Balance Sheet Classification December 31, 2019 Assets: Operating lease assets Operating lease assets, net $ 515 Finance lease assets (a) Property and equipment, net 41 Total lease assets, net $ 556 Liabilities: Current: Operating lease liabilities Current portion of operating lease liabilities $ 122 Finance lease liabilities Accrued expenses and other current liabilities 13 Non-current: Operating lease liabilities Long-term operating lease liabilities 467 Finance lease liabilities Other non-current liabilities 22 Total lease liabilities $ 624 Weighted Average Lease Term and Discount Rate Weighted average remaining lease term (years): Operating leases 6.1 Finance leases 3.1 Weighted average discount rate: Operating leases 5.1 % Finance leases 4.1 % _______________ (a) Finance lease assets are recorded net of accumulated amortization of $34 million . As of December 31, 2019, maturities of lease liabilities by fiscal year were as follows: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2020 $ 144 $ 13 $ 157 2021 135 11 146 2022 110 8 118 2023 85 4 89 2024 64 2 66 Thereafter 153 — 153 Total lease payments 691 38 729 Less: Interest 102 3 105 Present value of lease liabilities $ 589 $ 35 $ 624 Supplemental income statement information related to the Company's leases is as follows: Year Ended Lease Costs December 31, 2019 Operating lease costs $ 158 Finance lease costs: Amortization of leased assets 13 Interest on lease liabilities 1 Other lease costs (a) 28 Impairment (b) 12 Less: Sublease income, gross 3 Net lease cost $ 209 _______________ (a) Primarily consists of variable lease costs. (b) Impairment charges relate to the exit and sublease of certain real estate operating leases. Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2019 Supplemental cash flow information: Operating cash flows from operating leases $ 153 Operating cash flows from finance leases 1 Financing cash flows from finance leases 14 Supplemental non-cash information: Lease assets obtained in exchange for lease obligations: Operating leases $ 153 Finance leases 18 As previously disclosed in our 2018 Annual Report on Form 10-K and under historical lease accounting guidance: Future minimum lease payments for noncancelable operating leases as of December 31, 2018 were as follows: Year As of December 31, 2018 2019 $ 156 2020 136 2021 113 2022 90 2023 75 Thereafter 175 Total $ 745 Capital lease obligations were $33 million, net of $2 million of imputed interest as of December 31, 2018. The Company incurred rent expense of $196 million and $192 million for the years ended December 31, 2018 and 2017, respectively. Significant non-cash transactions included finance lease additions of $20 million and $18 million for the years ended December 31, 2018 and 2017, respectively, which resulted in non-cash additions to property and equipment, net and other non-current liabilities. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer | . REVENUE RECOGNITION 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 Consolidated Statements of Operations and further disaggregated by business segment as follows: Years Ended December 31, 2019 vs December 31, 2018 Realogy Realogy Realogy Realogy Corporate Total 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Gross commission income (a) $ — $ — $ 4,330 $ 4,533 $ — $ — $ — $ — $ — $ — $ 4,330 $ 4,533 Service revenue (b) — — 11 9 579 564 83 81 — — 673 654 Franchise fees (c) 668 688 — — — — — — (282) (295) 386 393 Other (d) 135 132 68 65 17 16 — — (11) (11) 209 202 Net revenues $ 803 $ 820 $ 4,409 $ 4,607 $ 596 $ 580 $ 83 $ 81 $ (293) $ (306) $ 5,598 $ 5,782 Years Ended December 31, 2018 vs December 31, 2017 (e) Realogy Realogy Realogy Realogy Corporate Total 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Gross commission income (a) $ — $ — $ 4,533 $ 4,576 $ — $ — $ — $ — $ — $ — $ 4,533 $ 4,576 Service revenue (b) — — 9 9 564 551 81 78 — — 654 638 Franchise fees (c) 688 695 — — — — — — (295) (299) 393 396 Other (d) 132 135 65 58 16 19 — — (11) (12) 202 200 Net revenues $ 820 $ 830 $ 4,607 $ 4,643 $ 580 $ 570 $ 81 $ 78 $ (306) $ (311) $ 5,782 $ 5,810 _______________ (a) Approximately 80% of the Company's total net revenues is related to gross commission income at Realogy Brokerage Group, which is recognized at a point in time at the closing of a homesale transaction. (b) Approximately 10% of the Company's total net revenues is related to service fees primarily consisting of title and escrow fees at Realogy Title Group, which are recognized at a point in time at the closing of a homesale transaction. (c) Approximately 7% of the Company's total net revenues is related to franchise fees at Realogy Franchise Group, primarily domestic royalties, which are recognized at a point in time when the underlying franchisee revenue is earned (upon close of the homesale transaction). (d) Less than 5% of the Company's total net revenues is related to other revenue, which comprised of brand marketing funds received at Realogy Franchise Group from franchisees, third-party listing fees and other miscellaneous revenues across all of the business segments. (e) Amounts for the year ended December 31, 2017 have not been adjusted under the modified retrospective method. The Company's revenue streams are discussed further below by business segment: Realogy Franchise Group The Company franchises its real estate brands to real estate brokerage businesses that are independently owned and operated. Franchise revenue principally consists of royalty and marketing fees from the Company’s franchisees. The royalty received is primarily based on a gross percentage (generally 6%) of the franchisee’s gross commission income. Royalty fees are accrued as the underlying franchisee revenue is earned (upon close of the homesale transaction). Annual volume incentives given to certain franchisees on royalty fees are recorded as a reduction to revenue and are accrued for in relative proportion to the recognition of the underlying gross franchise revenue. Other sales incentives are generally recorded as a reduction to revenue ratably over the related performance period or from the date of issuance through the remaining life of the related franchise agreement. Franchise revenue also includes domestic initial franchise fees which are generally non-refundable and recognized by the Company as revenue upon the execution or opening of a new franchisee office to cover the upfront costs associated with opening the franchisee for business under one of Realogy’s brands. The Company also earns marketing fees from its franchisees and utilizes such fees to fund marketing campaigns on behalf of its franchisees. As such, brand marketing fund fees are recorded as deferred revenue when received and recognized into revenue as earned when these funds are spent on marketing activities. The balance for deferred brand marketing fund fees increased from $12 million at January 1, 2019 to $13 million at December 31, 2019 primarily due to additional fees received from franchisees, partially offset by amounts recognized into revenue matching expenses for marketing activities during the year ended December 31, 2019. The Company collects initial area development fees ("ADFs") for international territory transactions, which are recorded as deferred revenue when received and are classified as current or non-current liabilities in the Consolidated Balance Sheets based on the expected timing of revenue recognition. ADFs are 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. The balance for deferred ADFs decreased from $54 million at January 1, 2019 to $48 million at December 31, 2019 due to revenues of $8 million recognized during the year ended December 31, 2019 that were included in the deferred revenue balance at the beginning of the period, partially offset by $2 million of additional area development fees received during the year ended December 31, 2019. In addition, the Company recognizes a deferred asset for commissions paid to Realogy franchise sales employees upon the sale of a new franchise as these are considered costs of obtaining a contract with a customer that are expected to provide benefits to the Company for longer than one year. The Company classifies prepaid commissions as current or non-current assets in the Consolidated Balance Sheets based on the expected timing of recognizing expense. The amount of commissions is calculated as a percentage of the anticipated gross commission income of the new franchisee or ADF and is amortized over 30 years for domestic franchise agreements or the agreement term for international franchise agreements (generally 25 years). The amount of prepaid commissions was $24 million and $25 million at December 31, 2019 and 2018, respectively. Realogy Brokerage Group As an owner-operator of real estate brokerages, the Company assists home buyers and sellers in listing, marketing, selling and finding homes. Real estate commissions earned by the Company’s real estate brokerage business are recorded as revenue at a point in time which is upon the closing of a real estate transaction (i.e., purchase or sale of a home). These revenues are referred to as gross commission income. The commissions the Company pays to real estate agents are recognized concurrently with associated revenues and presented as the commission and other agent-related costs line item on the accompanying Consolidated Statements of Operations. The Company has relationships with developers, primarily in major cities, to provide marketing and brokerage services in new developments. New development closings generally have a development period of between 18 and 24 months from contracted date to closing. In some cases, the Company receives advanced commissions which are recorded as deferred revenue when received and recognized as revenue when the new development closes. The balance of advanced commissions related to developments decreased from $10 million at January 1, 2019 to $9 million at December 31, 2019 due to a $2 million decrease as a result of revenues recognized on units closed, partially offset by a $1 million increase related to additional commissions received for new developments. Realogy Title Group The Company provides title and closing services, which include title search procedures for title insurance policies, homesale escrow and other closing services. Title revenues and title and closing service fees are recorded at a point in time which occurs at the time a homesale transaction or refinancing closes. The Company also owns an underwriter of title insurance. For unaffiliated agents, the underwriter recognizes policy premium revenue on a gross basis (before deduction of agent commission) upon notice of policy issuance from the agent. For affiliated title agents, the underwriter recognizes the incremental policy premium revenue upon the effective date of the title policy as the agent commission revenue is already recognized by the affiliated title agent. Realogy Leads Group T he Company provides home buying and selling assistance to members of affinity organizations. The Company earns referral commission revenue primarily from real estate brokers for the home sale and purchase for affinity members, which is recognized at a point in time when the underlying property closes. Realogy Leads Group also manages the Realogy Broker Network, which is a network of real estate brokers consisting of our company owned brokerage operations, select franchisees and independent real estate brokers who have been approved to become members. Network fees are billed in advance and recognized into revenue on a straight-line basis each month during the membership period. The balance for deferred network fees increased from zero at January 1, 2019 to $3 million at December 31, 2019 due to a $13 million increase related to new network fees, partially offset by $10 million of revenues recognized during the year that were included in the deferred revenue balance at the beginning of the period. Contract Balances (Deferred Revenue) The following table shows the change in the Company's contract liabilities related to revenue contracts by reportable segment for the period: Year Ended December 31, 2019 Beginning Balance at January 1, 2019 Additions during the period Recognized as Revenue during the period Ending Balance at Realogy Franchise Group (a) $ 78 $ 118 $ (127) $ 69 Realogy Brokerage Group 14 8 (9) 13 Realogy Leads Group — 13 (10) 3 Total $ 92 $ 139 $ (146) $ 85 _______________ (a) Revenues recognized include intercompany marketing fees paid by Realogy Brokerage Group. The majority of the Company's contracts are transactional in nature or have a duration of one-year or less. Accordingly, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Intangible Assets (Notes)
Intangible Assets (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | GOODWILL AND INTANGIBLE ASSETS Goodwill by reporting unit and changes in the carrying amount are as follows: Realogy Franchise Group Realogy Brokerage Group Realogy Realogy Total Company Balance at January 1, 2017 $ 2,292 $ 893 $ 145 $ 184 $ 3,514 Goodwill acquired (a) — 11 9 — 20 Balance at December 31, 2017 2,292 904 154 184 3,534 Goodwill acquired (b) — 2 — — 2 Balance at December 31, 2018 2,292 906 154 184 3,536 Goodwill acquired (c) — — 1 — 1 Impairment (d) — (237) — — (237) Balance at December 31, 2019 $ 2,292 $ 669 $ 155 $ 184 $ 3,300 Goodwill and accumulated impairment summary Gross goodwill $ 3,315 $ 1,064 $ 479 $ 321 $ 5,179 Accumulated impairments (e) (1,023) (395) (324) (137) (1,879) Balance at December 31, 2019 $ 2,292 $ 669 $ 155 $ 184 $ 3,300 _______________ (a) Goodwill acquired during the year ended December 31, 2017 relates to the acquisition of sixteen real estate brokerage operations and two title and settlement operations. (b) Goodwill acquired during the year ended December 31, 2018 relates to the acquisition of three real estate brokerage operations. (c) Goodwill acquired during the year ended December 31, 2019 relates to the acquisition of two title and settlement operations. (d) The Company recognized a goodwill impairment charge of $237 million during the third quarter of 2019 related to Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 20, "Selected Quarterly Financial Data", for additional information). (e) Includes impairment charges which reduced goodwill by $237 million, $1,153 million and $489 million during the third quarter of 2019, fourth quarter of 2008 and fourth quarter of 2007, respectively. Intangible assets are as follows: As of December 31, 2019 As of December 31, 2018 Gross Accumulated Net Gross Accumulated Net Amortizable—Franchise agreements (a) $ 2,019 $ 859 $ 1,160 $ 2,019 $ 792 $ 1,227 Indefinite life—Trademarks (b) $ 673 $ 673 $ 673 $ 673 Other Intangibles Amortizable—License agreements (c) $ 45 $ 12 $ 33 $ 45 $ 11 $ 34 Amortizable—Customer relationships (d) 71 57 14 71 55 16 Indefinite life—Title plant shares (e) 19 19 18 18 Amortizable—Other (f) 27 21 6 33 21 12 Total Other Intangibles $ 162 $ 90 $ 72 $ 167 $ 87 $ 80 _______________ (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 Title Group and Realogy Brokerage Group. These relationships are being amortized over a period of 2 to 12 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: For the Year Ended December 31, 2019 2018 2017 Franchise agreements $ 67 $ 67 $ 67 License agreements 1 1 1 Customer relationships 2 3 4 Other 6 5 9 Total $ 76 $ 76 $ 81 Based on the Company’s amortizable intangible assets as of December 31, 2019, the Company expects related amortization expense to be approximately $73 million, $71 million, $70 million, $70 million, $70 million and $859 million in 2020, 2021, 2022, 2023, 2024 and thereafter, respectively. |
Franchising and Marketing Activ
Franchising and Marketing Activities (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Franchising and Marketing Activities [Abstract] | |
Franchisors [Text Block] | FRANCHISING AND MARKETING ACTIVITIES Franchise fee revenue includes domestic initial franchise fees and international area development fees of $9 million, $6 million and $8 million for each of the years ended December 31, 2019, 2018 and 2017, respectively. The Company’s real estate franchisees may receive volume incentives on their royalty payments. Such annual incentives are based upon the amount of the franchisees commission income earned and paid to the Company during the calendar year. Each brand has several different annual incentive schedules currently in effect. Franchise fee revenue is recorded net of annual volume incentives provided to real estate franchisees of $50 million, $52 million and $62 million for the years ended December 31, 2019, 2018 and 2017, respectively. The Company’s wholly-owned real estate brokerage services segment, Realogy Brokerage Group, pays royalties to the Company’s franchise business; however, such amounts are eliminated in consolidation. Realogy Brokerage Group paid royalties to Realogy Franchise Group of $282 million, $295 million and $299 million for the years ended December 31, 2019, 2018 and 2017, respectively. Marketing fees are generally paid by the Company’s real estate franchisees and are generally calculated based on a specified percentage of gross closed commissions earned on real estate transactions, and may be subject to certain minimum and maximum payments. Brand marketing fund revenue was $90 million, $86 million and $87 million for the years ended December 31, 2019, 2018 and 2017, respectively, which included marketing fees paid to Realogy Franchise Group from Realogy Brokerage Group of $11 million, $11 million and $12 million for the years ended December 31, 2019, 2018 and 2017, respectively. As provided for in the franchise agreements and generally at the Company’s discretion, all of these fees are to be expended for marketing purposes. The number of franchised and company owned offices in operation are as follows: (Unaudited) As of December 31, 2019 2018 2017 Franchised (domestic and international): Century 21 ® 11,640 9,637 7,973 ERA ® 2,301 2,331 2,298 Coldwell Banker ® 2,323 2,380 2,330 Coldwell Banker Commercial ® 159 171 180 Sotheby’s International Realty ® 962 949 905 Better Homes and Gardens ® Real Estate 391 362 353 Total Franchised 17,776 15,830 14,039 Company owned: Coldwell Banker ® 634 672 707 Sotheby’s International Realty ® 37 41 41 Corcoran ® /Other 42 42 41 Total Company Owned 713 755 789 The number of franchised and company owned offices (in the aggregate) changed as follows: (Unaudited) For the Year Ended December 31, 2019 2018 2017 Franchised (domestic and international): Beginning balance 15,830 14,039 13,314 Additions 2,399 2,149 1,137 Terminations (453) (358) (412) Ending balance 17,776 15,830 14,039 Company owned: Beginning balance 755 789 789 Additions 4 8 20 Closures (46) (42) (20) Ending balance 713 755 789 As of December 31, 2019, there were an insignificant number of franchise agreements that were executed for which offices are not yet operating. Additionally, as of December 31, 2019, there were an insignificant number of franchise agreements pending termination. In order to assist franchisees in converting to one of the Company’s brands or as an incentive to renew their franchise agreement, the Company may at its discretion, provide incentives, primarily in the form of conversion notes. Provided the franchisee meets certain minimum annual revenue thresholds during the term of the notes and is in compliance with the terms of the franchise agreement, the amount of the note is forgiven annually in equal ratable amounts generally over the life of the franchise agreement. Otherwise, related principal is due and payable to the Company. The amount of such franchisee conversion notes were $134 million and $131 million, at December 31, 2019 and 2018, respectively. These notes are principally classified within other non-current assets in the Company’s Consolidated Balance Sheets. The Company recorded a contra-revenue in the statement of operations related to the forgiveness and impairment of these notes and other sales incentives of $29 million, $29 million and $25 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Property and Equipment, Net Pro
Property and Equipment, Net Property and Equipment, Net (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | . PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of: December 31, 2019 2018 Furniture, fixtures and equipment $ 162 $ 176 Capitalized software 334 293 Finance/capital lease assets 76 64 Building and leasehold improvements 292 275 Land 3 3 Gross property and equipment 867 811 Less: accumulated depreciation (559) (538) Property and equipment, net $ 308 $ 273 The Company recorded depreciation expense related to property and equipment of $93 million, $88 million and $85 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Accrued Expenses And Other Curr
Accrued Expenses And Other Current Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses And Other Current Liabilities | . ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of: December 31, 2019 2018 Accrued payroll and related employee costs $ 103 $ 106 Accrued volume incentives 35 37 Accrued commissions 32 30 Restructuring accruals 11 14 Deferred income 43 50 Accrued interest 18 15 Current portion of finance/capital lease liabilities 13 12 Due to former parent 18 21 Other 77 59 Total accrued expenses and other current liabilities $ 350 $ 344 |
Short and Long-Term Debt (Notes
Short and Long-Term Debt (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short And Long-Term Debt | SHORT AND LONG-TERM DEBT Total indebtedness is as follows: December 31, 2019 2018 Senior Secured Credit Facility: Revolving Credit Facility $ 190 $ 270 Term Loan B 1,045 1,053 Term Loan A Facility: Term Loan A 714 732 4.50% Senior Notes — 449 5.25% Senior Notes 548 547 4.875% Senior Notes 405 497 9.375% Senior Notes 543 — Total Short-Term & Long-Term Debt $ 3,445 $ 3,548 Indebtedness Table As of December 31, 2019, the Company’s borrowing arrangements were as follows: Interest Expiration Principal Amount Unamortized Discount and Debt Issuance Costs Net Amount Senior Secured Credit Facility: Revolving Credit Facility (1) (2) February 2023 $ 190 $ * $ 190 Term Loan B (3) February 2025 1,058 13 1,045 Term Loan A Facility: Term Loan A (4) February 2023 717 3 714 Senior Notes 5.25% December 2021 550 2 548 Senior Notes 4.875% June 2023 407 2 405 Senior Notes 9.375% April 2027 550 7 543 Total $ 3,472 $ 27 $ 3,445 _______________ * The debt issuance costs related to our Revolving Credit Facility are classified as a deferred financing asset within other assets. (1) As of December 31, 2019, the $1,425 million Revolving Credit Facility had outstanding borrowings of $190 million, as well as $57 million of outstanding letters of credit. The Revolving Credit Facility expires in February 2023 but is classified on the balance sheet as current due to the revolving nature and terms and conditions of the facility. On February 21, 2020, the Company had $310 million in outstanding borrowings under the Revolving Credit Facility and $57 million of outstanding letters of credit. (2) Interest rates with respect to revolving loans under the Senior Secured Credit Facility at December 31, 2019 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 2.25% and the ABR margin was 1.25% for the three months ended December 31, 2019. (3) The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B 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%). (4) The Term Loan A provides for quarterly amortization payments, which commenced on June 30, 2018, totaling per annum 2.5%, 2.5%, 5.0%, 7.5% and 10.0% of the original principal amount of the Term Loan A, with the balance of the Term Loan A due at maturity on February 8, 2023. The interest rates with respect to the 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 2.25% and the ABR margin was 1.25% for the three months ended December 31, 2019. Maturities Table As of December 31, 2019, the combined aggregate amount of maturities for long-term borrowings for each of the next five years is as follows: Year Amount 2020 (a) $ 234 2021 612 2022 81 2023 981 2024 11 _______________ (a) The current portion of long term debt consists of four quarters of 2020 amortization payments totaling $33 million and $11 million for the Term Loan A and Term Loan B facilities, respectively, as well as $190 million of revolver borrowings under the Revolving Credit Facility which expires in February 2023, but is classified on the balance sheet as current due to the revolving nature and terms and conditions of the facility. Senior Secured Credit Facility In February 2018, Realogy Group entered into a fifth amendment (the "Fifth Amendment") to the Amended and Restated Senior Secured Credit Agreement (as amended, amended and restated, modified or supplemented from time to time, the "Senior Secured Credit Agreement") that replaced the Term Loan B due July 2022 with a new $1,080 million Term Loan B due February 2025. In February 2018, Realogy Group entered into the sixth amendment (the "Sixth Amendment") to the Amended and Restated Senior Secured Credit Agreement which increased the borrowing capacity under its Revolving Credit Facility to $1,400 million from the prior $1,050 million and extended the maturity date to February 2023. In March 2019, Realogy Group entered into an incremental assumption agreement to the Senior Secured Credit Agreement that provided for an incremental revolving facility commitment of $25 million, increasing the borrowing capacity under the Revolving Credit Facility to $1,425 million. The Senior Secured Credit Agreement provides for: (a) the Term Loan B issued in the original aggregate principal amount of $1,080 million with a maturity date of February 2025. The Term Loan B 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 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 with a maturity date of February 2023, which includes a $125 million letter of credit subfacility. 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 Senior Secured Credit Agreement permits the Company to obtain up to $500 million of additional credit facilities on a combined basis with the Term Loan A Agreement (less any amounts previously incurred under this provision) from lenders reasonably satisfactory to the administrative agent and us, without the consent of the existing lenders under the new senior secured credit facility, plus an unlimited amount if Realogy Group's senior secured leverage ratio is less than 3.50 to 1.00 on a pro forma basis. Subject to certain restrictions, the Senior Secured Credit Agreement also permits the Company to issue senior secured or unsecured notes in lieu of any incremental facility. 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. Realogy Group’s Senior Secured Credit Agreement contains financial, affirmative and negative covenants and requires Realogy Group to maintain (so long as the Revolving Credit Facility is outstanding) a senior secured leverage ratio, not to exceed 4.75 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 unsecured indebtedness, including the Unsecured Notes. At December 31, 2019, Realogy Group was in compliance with the senior secured leverage ratio covenant. Term Loan A Facility In February 2018, Realogy Group entered into a second amendment to the Term Loan A Agreement. Under the amendment, the Company aggregated the existing $435 million Term Loan A and $355 million Term Loan A-1 tranches due October 2020 and July 2021, respectively, into a new single tranche of $750 million Term Loan A due February 2023. The Term Loan A provides for quarterly amortization payments totaling per annum 2.5%, 2.5%, 5.0%, 7.5% and 10.0% of the original principal amount of the Term Loan A, which commenced on June 30, 2018 and continue through February 8, 2023. The interest rates with respect to the Term Loan A are based on, at our 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% Consistent with the Senior Secured Credit Agreement, the Term Loan A Agreement permits the Company to obtain up to $500 million of additional credit facilities on a combined basis with the Senior Secured Credit Agreement (less any amounts previously incurred under this provision) from lenders reasonably satisfactory to the administrative agent and the Company, without the consent of the existing lenders under the Term Loan A, plus an unlimited amount if the Company's senior secured leverage ratio is less than 3.50 to 1.00 on a pro forma basis. Subject to certain restrictions, the Term Loan A Facility also permits the Company to issue senior secured or unsecured notes in lieu of any incremental facility. The Term Loan A Agreement contains negative covenants consistent with those included in the Senior Secured Credit Agreement. Unsecured Notes In February 2019, the Company used borrowings under its Revolving Credit Facility and cash on hand to fund the redemption of all of its outstanding $450 million 4.50% Senior Notes. In March 2019, the Company issued $550 million of 9.375% Senior Notes due in April 2027. The Company used $540 million of the net proceeds to repay a portion of outstanding borrowings under its Revolving Credit Facility. During the third quarter of 2019, Realogy Group used cash on hand to repurchase $93 million of its 4.875% Senior Notes in open market purchases at an aggregate purchase price of $83 million, plus accrued interest to the repurchase date. In conjunction with the repurchase, the Company recorded a gain on the early extinguishment of debt of $10 million. The 5.25% Senior Notes, 4.875% Senior Notes and the 9.375% Senior Notes (collectively the "Unsecured Notes") are unsecured senior obligations of Realogy Group that mature on December 1, 2021, June 1, 2023 and April 1, 2027, respectively. Interest on the Unsecured Notes is payable each year semiannually on June 1 and December 1 for both the 5.25% Senior Notes and 4.875% Senior Notes, and on April 1 and October 1 for the 9.375% Senior Notes. 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 and Realogy Group's outstanding debt securities, and are guaranteed by Realogy Holdings on an unsecured senior subordinated basis. The indentures governing the Unsecured Notes contain 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 other Unsecured 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, (a) the cumulative credit basket for restricted payments (i) was reset to zero and builds from January 1, 2019, (ii) builds at 25% of Consolidated Net Income (as defined in the indenture governing the 9.375% Senior Notes) when the consolidated leverage ratio (as defined below) is equal to or greater than 4.0 to 1.0 (and 50% of Consolidated Net Income when it is less than 4.0 to 1.0) and, consistent with the indentures governing the other Unsecured Notes, is reduced by 100% of the deficit when Consolidated Net Income is a deficit and (iii) may not be used when the consolidated leverage ratio is equal to or greater than 4.0 to 1.0; (b) the $100 million general restricted payment basket may be used only for Restricted Investments (as defined in the indenture governing the 9.375% Senior Notes); (c) the indenture governing the 9.375% Senior Notes requires the consolidated leverage ratio to 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); and (d) the indenture governing the 9.375% Senior Notes contains a new restricted payment basket that may be used for up to $45 million of dividends per calendar year. The consolidated leverage ratio is measured by dividing Realogy Group's total net debt by the trailing twelve-month EBITDA. EBITDA, as defined in the indenture governing the 9.375% Senior 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 indenture is Realogy Group's total indebtedness 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. Other Debt Facilities The Company had an Unsecured Letter of Credit Facility to provide for the issuance of letters of credit required for general corporate purposes. At December 31, 2018, the capacity was $66 million, with $63 million being utilized. The Facility expired in December 2019 and was not renewed. All outstanding letters of credit are currently under the Company's Revolving Credit Facility as of December 31, 2019. Gain/Loss on the Early Extinguishment of Debt and Write-Off of Financing Costs During the year ended December 31, 2019, the Company recorded a gain on the early extinguishment of debt of $5 million which consisted of a $10 million gain as a result of the repurchase of $93 million of its 4.875% Senior Notes during the third quarter of 2019, partially offset by a $5 million loss as a result of the refinancing transactions in the first quarter of 2019. As a result of the refinancing transactions in February 2018, the Company recorded a loss on the early extinguishment of debt of $7 million and wrote off financing costs of $2 million to interest expense during the year ended December 31, 2018. As a result of the refinancing transaction in January 2017 and a reduction of the Unsecured Letter of Credit Facility in September of 2017, the Company recorded losses on the early extinguishment of debt of $5 million during the year ended December 31, 2017. |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS DEFINED BENEFIT PENSION PLAN The Company’s defined benefit pension plan was closed to new entrants as of July 1, 1997 and existing participants do not accrue any additional benefits. The net periodic pension cost for 2019 was $2 million and was comprised of interest cost of approximately $5 million and the amortization of the actuarial net loss of $2 million, offset by a benefit of $5 million for the expected return on assets. The net periodic pension cost for 2018 was less than $1 million and was comprised of interest cost of approximately $5 million and the amortization of the actuarial net loss of $2 million, offset by a benefit of $7 million for the expected return on assets. At December 31, 2019 and 2018, the accumulated benefit obligation of this plan was $143 million and $128 million, respectively, and the fair value of the plan assets were $100 million and $90 million, respectively, resulting in an unfunded accumulated benefit obligation of $43 million and $38 million, respectively, which is recorded in Other current and non-current liabilities in the Consolidated Balance Sheets. Estimated future benefit payments as of December 31, 2019 are as follows: Year Amount 2020 $ 9 2021 9 2022 9 2023 9 2024 9 2025 through 2029 45 The minimum funding required during 2020 is estimated to be $8 million. The following table presents the fair values of plan assets by category as of December 31, 2019: Asset Category Quoted Price in Active Market for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Cash and cash equivalents $ 1 $ — $ — $ 1 Equity securities — 51 — 51 Fixed income securities — 48 — 48 Total $ 1 $ 99 $ — $ 100 The following table presents the fair values of plan assets by category as of December 31, 2018: Asset Category Quoted Price in Active Market for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities — 43 — 43 Fixed income securities — 44 — 44 Total $ 3 $ 87 $ — $ 90 OTHER EMPLOYEE BENEFIT PLANS The Company also maintains post-retirement health and welfare plans for certain subsidiaries and a non-qualified pension plan for certain individuals. At December 31, 2019 and 2018, the related projected benefit obligation for these plans accrued on the Company’s Consolidated Balance Sheets (primarily within other non-current liabilities) was $5 million for both periods. DEFINED CONTRIBUTION SAVINGS PLAN The Company sponsors a defined contribution savings plan that provides certain of its eligible employees an opportunity to accumulate funds for retirement and has a Company match for a portion of the contributions made by participating employees. The Company’s cost for contributions to this plan was $17 million, $16 million and $16 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The components of pretax income for domestic and foreign operations consisted of the following: Year Ended December 31, 2019 2018 2017 Domestic $ (140) $ 213 $ 362 Foreign — — — Pretax (loss) income $ (140) $ 213 $ 362 The components of income tax expense (benefit) consisted of the following: Year Ended December 31, 2019 2018 2017 Current: Federal $ 3 $ (11) $ (8) State 7 5 4 Foreign 2 2 2 Total current 12 (4) (2) Deferred: Federal (25) 61 (73) State (9) 10 9 Foreign — — — Total deferred (34) 71 (64) Income tax (benefit) expense $ (22) $ 67 $ (66) The Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”), which became law on December 22, 2017, reduced the U.S. Federal corporate tax rate from 35% to 21% for tax years beginning in 2018. The $66 million income tax benefit in 2017 included a tax benefit of approximately $184 million due to the re-measurement of the Company’s net deferred tax liabilities associated with the 2017 Tax Act and a $32 million reduction in the Company's reserve for uncertain tax positions, partially offset by current operating results. A reconciliation of the Company’s effective income tax rate at the U.S. federal statutory rate of 21% to the actual expense was as follows: Year Ended December 31, 2019 2018 2017 Federal statutory rate 21 % 21 % 35 % State and local income taxes, net of federal tax benefits 6 5 4 Impact of the 2017 Tax Act — — (50) Non-deductible equity compensation (4) 2 — Non-deductible executive compensation (1) 1 — Goodwill impairment (3) — — Meals & entertainment (2) — — Other permanent differences (1) 1 — Uncertain tax positions — (1) (9) Net change in valuation allowance — 2 1 Other — — 1 Effective tax rate 16 % 31 % (18) % Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the deferred income tax assets and liabilities, as of December 31, are as follows: 2019 2018 Deferred income tax assets: Net operating loss carryforwards $ 173 $ 236 Tax credit carryforwards 29 24 Accrued liabilities and deferred income 77 92 Operating leases 169 — Minimum pension obligations 18 16 Provision for doubtful accounts 7 7 Liability for unrecognized tax benefits 1 1 Interest rate swaps 12 5 Total deferred tax assets 486 381 Less: valuation allowance (14) (14) Total deferred income tax assets after valuation allowance 472 367 Deferred income tax liabilities: Depreciation and amortization 704 747 Operating leases 146 — Prepaid expenses 8 8 Basis difference in investment in joint ventures 2 1 Other 2 — Total deferred tax liabilities 862 756 Net deferred income tax liabilities $ (390) $ (389) As of December 31, 2019, the Company had gross federal and state net operating loss carryforwards of $588 million. The federal net operating loss carryforwards expire between 2030 and 2033 and the state net operating loss carryforwards expire between 2020 and 2033. Accounting for Uncertainty in Income Taxes The Company utilizes the FASB guidance for accounting for uncertainty in income taxes, which prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company reflects changes in its liability for unrecognized tax benefits as income tax expense in the Consolidated Statements of Operations. As of December 31, 2019, the Company’s gross liability for unrecognized tax benefits was $20 million, of which $17 million would affect the Company’s effective tax rate, if recognized. The Company does not expect that its unrecognized tax benefits will significantly change over the next twelve months. The Company files U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitations. Tax returns for the 2006 through 2019 tax years remain subject to examination by federal and certain state tax authorities. In significant foreign jurisdictions, tax returns for the 2015 through 2019 tax years generally remain subject to examination by their respective tax authorities. The Company believes that it is reasonably possible that the total amount of its unrecognized tax benefits could decrease by $1 million in certain taxing jurisdictions where the statute of limitations is set to expire within the next twelve months. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in interest expense and operating expenses, respectively. The Company did not recognize a change of interest expense for the year ended December 31, 2019. Additionally, the Company recognized a reduction of interest expense of $1 million for the year ended December 31, 2018 and a reduction of interest expense of $2 million for the year ended December 31, 2017. The rollforward of unrecognized tax benefits are summarized in the table below: Unrecognized tax benefits—January 1, 2017 $ 75 Gross decreases—tax positions in prior periods (54) Reduction due to lapse of statute of limitations (1) Unrecognized tax benefits—December 31, 2017 20 Reduction due to lapse of statute of limitations (1) Unrecognized tax benefits—December 31, 2018 19 Gross increases—tax positions in prior periods 1 Unrecognized tax benefits—December 31, 2019 $ 20 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. Tax Sharing Agreement Under the Tax Sharing Agreement with Cendant, Wyndham Worldwide and Travelport, the Company is generally responsible for 62.5% of payments made to settle claims with respect to tax periods ending on or prior to December 31, 2006 that relate to income taxes imposed on Cendant and certain of its subsidiaries, the operations (or former operations) of which were determined by Cendant not to relate specifically to the respective businesses of Realogy, Wyndham Worldwide, Avis Budget or Travelport. With respect to any remaining residual legacy Cendant tax liabilities, the Company and its former parent believe there is appropriate support for the positions taken on Cendant’s tax returns. However, tax audits and any related litigation, including disputes or litigation on the allocation of tax liabilities between parties under the Tax Sharing Agreement, could result in outcomes for the Company that are different from those reflected in the Company’s historical financial statements. |
Restructuring Costs (Notes)
Restructuring Costs (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | RESTRUCTURING COSTS Restructuring charges for the years ended December 31, 2019, 2018 and 2017 were $42 million, $47 million and $12 million, respectively. The components of the restructuring charges for the years ended December 31, 2019, 2018 and 2017 were as follows: Years Ended December 31, 2019 2018 2017 Personnel-related costs (1) $ 24 $ 17 $ 7 Facility-related costs (2) 17 20 4 Internal use software impairment (3) — 10 — Other restructuring costs (4) 1 — 1 Total restructuring charges (5) $ 42 $ 47 $ 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. (3) Internal use software impairment relates to development costs capitalized for a project that was determined to not meet the Company's strategic goals when analyzed by the Company's new leadership team. (4) Other restructuring costs consist of costs related to professional fees, consulting fees and other costs associated with restructuring activities which are primarily included in the Corporate and Other business segment. (5) The year ended December 31, 2019 includes $38 million of expense related to the Facility and Operational Efficiencies Program and $4 million of expense related to prior restructuring programs. The years ended December 31, 2018 and December 31, 2017 relate to prior restructuring programs. 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 fourth quarter of 2019, the Company expanded its operational efficiencies program to focus on workforce optimization. This workforce optimization initiative is focused on consolidating similar or overlapping roles, reducing the number of hierarchical layers and streamlining work and decision making. Separately, the Company also reduced headcount in the third quarter in connection with the wind down of a former affinity program. Furthermore, at the end of 2019 the Company identified other strategic initiatives which are expected to result in additional operational and facility related efficiencies in 2020. 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 (1) Other restructuring costs Total Balance at December 31, 2018 $ — $ — $ — $ — Restructuring charges 21 16 1 38 Costs paid or otherwise settled (15) (11) (1) (27) Balance at December 31, 2019 $ 6 $ 5 $ — $ 11 _______________ (1) In addition, the Company incurred an additional $12 million related to lease asset impairments in connection with the Facility and Operational Efficiencies Program during the year ended December 31, 2019. 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 Amount incurred Total amount remaining to be incurred Personnel-related costs $ 24 $ 21 $ 3 Facility-related costs (1) 46 16 30 Other restructuring costs 1 1 — Total $ 71 $ 38 $ 33 _______________ (1) Facility-related costs includes lease asset impairments expected 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 $ 3 $ 2 $ 1 Realogy Brokerage Group 54 25 29 Realogy Title Group 2 2 — Realogy Leads Group 2 2 — Corporate and Other 10 7 3 Total $ 71 $ 38 $ 33 Leadership Realignment and Other Restructuring Activities Beginning in the first quarter of 2018, the Company commenced the implementation of a plan to drive its business forward and enhance stockholder value. The key aspects of this plan included senior leadership realignment, an enhanced focus on technology and talent, as well as further attention to office footprint and other operational efficiencies. The activities undertaken in connection with the restructuring plan are complete. At December 31, 2018, the remaining liability was $17 million. During the year ended December 31, 2019, the Company incurred personnel-related costs of $3 million, paid or settled costs of $12 million and reclassified $3 million to offset related lease assets upon adoption of the new leasing standard, resulting in a remaining accrual of $5 million related to personnel and facility related liabilities. |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company grants stock-based compensation awards to certain senior management, employees and directors including non-qualified stock options, restricted stock units ("RSUs"), performance restricted stock units ("PRSUs") and performance share units ("PSUs"). The Company's stockholders approved the 2018 Long-Term Incentive Plan (the "2018 Plan") at the 2018 Annual Meeting of Stockholders held on May 2, 2018. Upon approval of the 2018 Plan, the 2012 Amended and Restated Long-Term Incentive Plan, as amended (the "2012 Plan") was terminated, no future awards were permitted to be granted under the 2012 Plan, and any shares available for future issuance under the 2012 Plan were canceled. Under the 2018 Plan, 6 million shares were authorized for issuance plus any shares that expire or are forfeited under the 2012 Plan after March 1, 2018. As of December 31, 2019, there are approximately 0.6 million shares available for future grants. Each of the 2012 and 2018 Plan includes a retirement provision for equity grants which provide for continued vesting of awards once an employee has attained the age of 65 years, or 55 years of age or older plus at least ten years of tenure with the Company, provided they have been employed or provided services to the Company for one year following the date of grant or start of the performance period. A summary of activity for the year ended December 31, 2019 is presented below (number of shares in millions): Restricted Stock Units Weighted Average Grant Date Fair Value Performance Share Units (a) Weighted Average Grant Date Fair Value Options (e) Weighted Average Exercise Price Outstanding at January 1, 2019 2.2 $ 27.37 1.7 $ 28.10 3.7 $ 30.98 Granted 2.5 13.41 0.9 11.06 0.8 13.44 Distributed/Exercised (1.0) (b) 28.17 (0.2) (c) 32.66 — — Forfeited/Expired (0.3) 18.81 (0.1) 19.35 (0.4) 28.74 Outstanding at December 31, 2019 3.4 $ 17.89 2.3 $ 19.16 4.1 (d) $ 27.50 _______________ (a) The PSU amounts in the table are shown at the target amount of the award. (b) The total fair value of RSUs which were distributed during the year ended December 31, 2019 was $27 million. (c) The total fair value of PSUs which were distributed during the year ended December 31, 2019 was $8 million. (d) Options outstanding at December 31, 2019 have an intrinsic value of zero and have a weighted average remaining contractual life of 5.7 years. (e) As of December 31, 2019, 2.5 million of the 4.1 million outstanding stock options were exercisable with a weighted average exercise price of $32.19, an intrinsic value of zero and a weighted average remaining contractual life of 3.9 years. Awards granted annually include a mix of RSUs (PRSUs for the CEO and direct reports in 2017), options and PSUs. The RSUs and PRSUs vest over three The PSUs are incentives that reward grantees based upon the Company's financial performance over a three 2019 RTSR PSU 2018 RTSR PSU 2017 RTSR PSU Weighted average grant date fair value $ 7.82 $ 25.45 $ 27.98 Weighted average expected volatility (a) 34.8 % 29.8 % 29.0 % Weighted average volatility of S&P 400 13.5 % Weighted average volatility of XHB 17.9 % 18.4 % Weighted average correlation coefficient 0.42 0.44 0.53 Weighted average risk-free interest rate 2.5 % 2.6 % 1.5 % Weighted average dividend yield — — — _______________ (a) Expected volatility is based on historical volatilities of the Company and select comparable companies. The stock options have a maximum term of ten four 2019 Options 2018 Options 2017 Options Weighted average grant date fair value $ 3.40 $ 7.12 $ 8.61 Weighted average expected volatility (a) 31.4 % 28.5 % 30.7 % Weighted average expected term (years) (b) 6.25 6.25 6.25 Weighted average risk-free interest rate (c) 2.5 % 2.7 % 2.0 % Weighted average dividend yield 2.7 % 1.4 % 1.2 % _______________ (a) Expected volatility was based on historical volatilities of the Company and select comparable companies. (b) The expected term of the options granted represents the period of time that options are expected to be outstanding and is based on the simplified method. (c) The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of the grant, which corresponds to the expected term of the options. Stock-Based Compensation Expense As of December 31, 2019, based on current performance achievement expectations, there was $35 million of unrecognized compensation cost related to incentive equity awards under the plans which would be recorded in future periods as compensation expense over a remaining weighted average period of approximately 1.9 years. The Company recorded stock-based compensation expense related to the incentive equity awards of $28 million, $37 million and $47 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Commitments And Contingencies (
Commitments And Contingencies (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [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: • 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; • concerning anti-trust and anti-competition matters; • 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; • 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 and cyber-crime, including claims under new and emerging data privacy laws related to the protection of customer, employee or third-party information, as well as those 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. The plaintiff alleges 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 complaint also asserts an unfair business practice claim based on the alleged violations described above. On February 15, 2019, the plaintiff amended his complaint to assert claims pursuant to the California Private Attorneys General Act (“PAGA”). The PAGA claims included in the amended complaint are substantively similar to those asserted in the original complaint. Under California law, PAGA claims are generally not subject to arbitration and may result in exposure in the form of additional penalties. In April 2019, the defendants filed motions to compel arbitration of the non-PAGA claims and to stay the PAGA claims pending resolution of the arbitrable claims. On June 5, 2019, the court dismissed the plaintiff’s non-PAGA claims without prejudice and withdrew the defendants’ motion to compel arbitration by stipulation of the parties. The plaintiff continues to pursue his PAGA claims as a representative of purported "aggrieved employees" as defined by PAGA. The plaintiff currently seeks, as the representative of all purported aggrieved employees, all non-individualized relief available to the purported aggrieved employees under PAGA, as well as attorneys’ fees. On November 15, 2019, Century 21 M&M filed a demurrer to the complaint, seeking to dismiss the remaining claim in the action, to which Century 21 filed a joinder, and on February 12, 2020 a brief in opposition was filed by the plaintiff. Fenley v. Realogy Franchise Group LLC, Sotheby’s International Realty, Inc., Wish Properties, Inc. and DOES 1-100 (Superior Court of California, Kern County). This is a putative class action complaint filed on April 25, 2019 by plaintiff Elizabeth Fenley against Wish Properties, Inc, a Sotheby’s International Realty independently-owned franchisee doing business as Wish Sotheby’s International Realty (“Wish SIR”). The complaint also names Realogy Franchise Group LLC and Sotheby’s International Realty, Inc., wholly-owned subsidiaries of the Company, as alleged joint employers of the franchisee’s independent sales agents and seeks to certify a class that could potentially include all agents in California affiliated with any Realogy Franchise Group brand. The plaintiff alleges that all defendants are jointly responsible for misclassifying Wish SIR’s agents as independent contractors and failed to reimburse for business expenses, provide accurate wage statements and pay wages timely, all in violation of the California Labor Code. The complaint also asserts an unfair business practice claim based on the violations previously described. The plaintiff seeks reimbursement of allegedly necessary expenses, liquidated damages, waiting time penalties, civil penalties, pre- and post-judgment interest, restitution, injunctive relief, and attorneys’ fees and costs. On September 17, 2019, the Court denied the defendants’ motions to compel arbitration. In February 2020, the matter was settled on an individual basis. These cases raise various previously unlitigated claims and the PAGA claims in the Whitlach matter add additional litigation, financial and operating uncertainties. There are similar classification cases pending against several other brokerages in the state of California and developments in one or more of those cases could impact progress in these cases. 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 Moehler 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. Plaintiffs' counsel has filed a motion to appoint lead counsel in the case, which has yet to be decided by the court. On August 9, 2019, NAR and the Company (together with the other defendants named in the amended Moehler complaint) each filed separate motions to dismiss this litigation. The plaintiffs filed their opposition to the motions to dismiss on September 13, 2019, and the defendants filed their replies in support of the motions on October 18, 2019. 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). Securities Litigation Tanaskovic v. Realogy Holdings Corp., et. al. (U.S. District Court for the District of New Jersey). This is a putative class action complaint filed on July 11, 2019 by plaintiff Sasa Tanaskovic against the Company and certain of its current and former executive officers. The lawsuit alleges violations of Sections 10(b), 20(a) and Rule 10b-5 of the Exchange Act in connection with allegedly false and misleading statements made by the Company about its business, operations, and prospects. The plaintiffs seek, among other things, compensatory damages for purchasers of the Company’s common stock between February 24, 2017 through May 22, 2019, as well as attorneys’ fees and costs. Locals 302 and 612 of the International Union of Operating Engineers-Employers Construction Industry Retirement Trust (the “Retirement Trust”), was appointed lead plaintiff on November 7, 2019. Lead plaintiff has until March 6, 2020 to file its amended complaint per the stipulation of the parties entered by the Court on January 8, 2020. Fried v. Realogy Holdings Corp., et al. (U.S. District Court for the District of New Jersey). This is a putative derivative action filed on October 23, 2019 by plaintiff Adam Fried against the Company (as nominal defendant) and certain of its current and former executive officers and members of its Board of Directors (as defendants). The lawsuit alleges violations of Section 14(a) of the Exchange Act and breach of fiduciary duties for, among other things, allegedly false and misleading statements made by the Company about its business, operations and prospects as well as unjust enrichment claims. The plaintiff seeks, among other things, compensatory damages, disgorgement of improper compensation, certain reforms to the Company’s corporate governance and internal procedures and attorneys’ fees and costs. On December 23, 2019, the Court approved a motion staying this case pending further action in the Tanaskovic matter. 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. * * * 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. On September 6, 2019, Compass filed a motion to dismiss this litigation. On September 26, 2019, the Company filed an amended complaint, which adds certain factual allegations in support of the Company’s claims, withdraws the count for aiding and abetting breach of contract and adds a count for defamation. On November 25, 2019, Compass filed a motion to compel arbitration of the claims asserted by The Corcoran Group as well as a separate motion to dismiss this litigation. On January 14, 2020, the Company opposed both motions and on February 10, 2020 Compass filed reply briefs on both motions. * * * 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, 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, general fraud claims (including wire fraud associated with third-party diversion of funds from a brokerage transaction), employment law claims, including claims challenging the classification of our sales agents as independent contractors, wage and hour classification claims and claims alleging violations of RESPA or 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 $18 million and $21 million at December 31, 2019 and 2018, respectively. The due to former parent balance was comprised of the Company’s portion of the following: (i) Cendant’s remaining contingent tax liabilities, (ii) accrued interest on contingent tax liabilities, (iii) potential liabilities related to Cendant’s terminated or divested businesses, and (iv) 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 $475 million and $426 million at December 31, 2019 and 2018, respectively. These escrow and trust deposits are not assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets. However, the Company remains contingently liable for the disposition of these deposits. Purchase Commitments and Minimum Licensing Fees In the normal course of business, the Company makes various commitments to purchase goods or services from specific suppliers, including those related to capital expenditures. The purchase commitments made by the Company as of December 31, 2019 are approximately $73 million. The Company is required to pay a minimum licensing fee to Sotheby’s which began in 2009 and continues through 2054. The annual minimum licensing fee is approximately $2 million per year. The Company is also required to pay a minimum licensing fee to Meredith Corporation for the licensing of the Better Homes and Gardens Real Estate brand. The annual minimum licensing fee began in 2009 at $0.5 million and increased to $4 million in 2014, where it will generally remain through 2058. Future minimum payments for these purchase commitments and minimum licensing fees as of December 31, 2019 are as follows: Year Amount 2020 $ 44 2021 24 2022 11 2023 9 2024 8 Thereafter 217 Total $ 313 Standard Guarantees/Indemnifications In the ordinary course of business, the Company enters into numerous agreements that contain standard guarantees and indemnities whereby the Company indemnifies another party for breaches of representations and warranties. In addition, many of these parties are also indemnified against any third-party claim resulting from the transaction that is contemplated in the underlying agreement. Such guarantees or indemnifications are granted under various agreements, including those governing: (i) purchases, sales or outsourcing of assets or businesses, (ii) leases and sales of real estate, (iii) licensing of trademarks, (iv) use of derivatives, and (v) issuances of debt securities. The guarantees or indemnifications issued are for the benefit of the: (i) buyers in sale agreements and sellers in purchase agreements, (ii) landlords in lease contracts, (iii) franchisees in licensing agreements, (iv) financial institutions in derivative contracts, and (v) underwriters in issuances of securities. While some of these guarantees extend only for the duration of the underlying agreement, many survive the expiration of the term of the agreement or extend into perpetuity (unless subject to a legal statute of limitations). There are no specific limitations on the maximum potential amount of future payments that the Company could be required to make under these guarantees, nor is the Company able to develop an estimate of the maximum potential amount of future payments to be made under these guarantees as the triggering events are not subject to predictability. With respect to certain of the aforementioned guarantees, such as indemnifications of landlords against third-party claims for the use of real estate property leased by the Company, the Company maintains insurance coverage that mitigates any potential payments to be made. Other Guarantees/Indemnifications In the normal course of business, the Company coordinates numerous events for its franchisees and thus reserves a number of venues with certain minimum guarantees, such as room rentals at hotels local to the conference center. However, such room rentals are paid by each individual franchisee. If the franchisees do not meet the minimum guarantees, the Company is obligated to fulfill the minimum guaranteed fees. The maximum potential amount of future payments that the Company would be required to make under such guarantees is approximately $10 million. The Company would only be required to pay this maximum amount if none of the franchisees conducted their planned events at the reserved venues. Historically, the Company has not been required to make material payments under these guarantees. Insurance and Self-Insurance At December 31, 2019 and 2018, the Consolidated Balance Sheets include approximately $25 million and $24 million, respectively, of liabilities relating to: (i) self-insured risks for errors and omissions and other legal matters incurred in the ordinary course of business within Realogy Brokerage Group and (ii) premium and claim reserves for the Company’s title underwriting business. The Company may also be subject to legal claims arising from the handling of escrow transactions and closings. Realogy Brokerage Group carries errors and omissions insurance for errors made during the real estate settlement process of $15 million in the aggregate, subject to a deductible of $1 million per occurrence. In addition, the Company carries an additional errors and omissions insurance policy for Realogy Holdings Corp. and its subsidiaries for errors made for real estate related services up to $45 million in the aggregate, subject to a deductible of $2.5 million per occurrence. This policy also provides excess coverage to Realogy Brokerage Group creating an aggregate limit of $60 million, subject to Realogy Brokerage Group's deductible of $1 million per occurrence. The Company issues title insurance policies which provide coverage for real property to mortgage lenders and buyers of real property. When acting as a title agent issuing a policy on behalf of an underwriter, assuming no negligence on part of the title agent, the Company is not liable for losses under those policies but rather the title insurer is typically liable for such losses. The title underwriter which the Company acquired in January 2006 typically underwrites title insurance policies of up to $1.5 million. For policies in excess of $1.5 million, the Company typically obtains a reinsurance policy from a national underwriter to reinsure the excess amount. The Company, as an underwriter, manages our claims losses through strict agent vetting, clear underwriting guidelines, training and frequent communications with our agents. Fraud, defalcation and misconduct by employees are also risks inherent in the business. The Company is the custodian of cash deposited by customers with specific instructions as to its disbursement from escrow, trust and account servicing files. The Company maintains Fidelity insurance covering the loss or theft of funds of up to $30 million per occurrence, subject to a deductible of $750 thousand per occurrence. The Company also maintains self-insurance arrangements relating to health and welfare, workers’ compensation, auto and general liability in addition to other benefits provided to the Company’s employees. The accruals for these self-insurance arrangements totaled approximately $15 million for both December 31, 2019 and 2018. |
Equity (Deficit) (Notes)
Equity (Deficit) (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | EQUITY Changes in Accumulated Other Comprehensive Loss The components of accumulated other comprehensive losses are as follows: Currency Translation Adjustments (1) Minimum Pension Liability Adjustment Accumulated Other Comprehensive Loss (2) Balance at January 1, 2017 $ (6) $ (34) $ (40) Other comprehensive income (loss) before reclassifications 3 (1) 2 Amounts reclassified from accumulated other comprehensive loss — 2 (3) 2 Income tax expense (1) — (1) Current period change 2 1 3 Balance at December 31, 2017 (4) (33) (37) Adoption of a new accounting pronouncement (1) (4) (8) (4) (9) Other comprehensive loss before reclassifications (3) (6) (9) Amounts reclassified from accumulated other comprehensive loss — 2 (3) 2 Income tax benefit — 1 1 Current period change (4) (11) (15) Balance at December 31, 2018 (8) (44) (52) Other comprehensive loss before reclassifications — (8) (8) Amounts reclassified from accumulated other comprehensive loss — 2 (3) 2 Income tax benefit — 2 2 Current period change — (4) (4) Balance at December 31, 2019 $ (8) $ (48) $ (56) _______________ (1) Assets and liabilities of foreign subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the balance sheet dates and equity accounts are translated at historical spot rates. Revenues and expenses are translated at average exchange rates during the periods presented. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars are included in accumulated other comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in the Consolidated Statements of Operations and primarily relate to discontinued operations. (2) As of December 31, 2019, the Company does not have any after-tax components of accumulated other comprehensive loss attributable to noncontrolling interests. (3) These amounts represent the amortization of actuarial loss to periodic pension cost and were reclassified from accumulated other comprehensive income to the general and administrative expenses line on the statement of operations. (4) These amounts represent adjustments for the adoption of the accounting standard update on stranded tax effects related to the 2017 Tax Act which resulted in a debit to Accumulated other comprehensive loss and a credit to Accumulated deficit of $9 million during the first quarter of 2018. Dividend Policy The Board declared and paid quarterly cash dividends of $0.09 per share of the Company's common stock since August 2016. In early November 2019, the Company's Board of Directors determined that, effective immediately, it will no longer pay a dividend. The Company returned a total of $31 million, $45 million and $49 million to stockholders in cash dividends during the years ended December 31, 2019, 2018 and 2017, respectively. Pursuant to the Company’s policy, dividends payable in cash are treated as a reduction of additional paid-in capital since the Company is currently in an accumulated deficit position. Realogy Group Statements of Equity for the years ended December 31, 2019, 2018 and 2017 Total equity for Realogy Group equals that of Realogy Holdings, but the components, common stock and additional paid-in capital are different. The table below presents information regarding the balances and changes in common stock and additional paid-in capital of Realogy Group for each of the three years ended December 31, 2019, 2018 and 2017. Realogy Group Stockholder’s Equity Common Stock Additional Accumulated Accumulated Other Comprehensive Loss Non- Total Shares Amount Balance at January 1, 2017 — $ — $ 5,566 $ (3,062) $ (40) $ 5 $ 2,469 Net income — — — 431 — 3 434 Other comprehensive income — — — — 3 — 3 Repurchase of Common Stock — — (280) — — — (280) Contributions from Realogy Holdings — — 8 — — — 8 Stock-based compensation — — 41 — — — 41 Dividends — — (49) — — (4) (53) Balance at December 31, 2017 — $ — $ 5,286 $ (2,631) $ (37) $ 4 $ 2,622 Cumulative effect of adoption of new accounting pronouncements — — — (13) (9) — (22) Net income — — — 137 — 3 140 Other comprehensive loss — — — — (6) — (6) Repurchase of Common Stock — — (402) — — — (402) Contributions from Realogy Holdings — — 1 — — — 1 Stock-based compensation — — 30 — — — 30 Dividends — — (45) — — (3) (48) Balance at December 31, 2018 — $ — $ 4,870 $ (2,507) $ (52) $ 4 $ 2,315 Net (loss) income — — — (188) — 3 (185) Other comprehensive income — — — — (4) — (4) Repurchase of Common Stock — — (20) — — — (20) Stock-based compensation — — 24 — — — 24 Dividends — — (31) — — (3) (34) Balance at December 31, 2019 — $ — $ 4,843 $ (2,695) $ (56) $ 4 $ 2,096 |
Earnings (Loss) Per Share (Note
Earnings (Loss) Per Share (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 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 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: Year Ended December 31, (in millions, except per share data) 2019 2018 2017 Numerator: Numerator for earnings per share—continuing operations Net income (loss) from continuing operations $ (118) $ 146 $ 428 Less: Net income attributable to noncontrolling interests (3) (3) (3) Net (loss) income from continuing operations attributable to Realogy Holdings $ (121) $ 143 $ 425 Numerator for earnings per share—discontinued operations Net (loss) income from discontinued operations $ (67) $ (6) $ 6 Net (loss) income attributable to Realogy Holdings shareholders $ (188) $ 137 $ 431 Denominator: Weighted average common shares outstanding (denominator for basic (loss) earnings per share calculation) 114.2 124.0 136.7 Dilutive effect of stock-based compensation (a) (b) — 1.3 1.7 Weighted average common shares outstanding (denominator for diluted (loss) earnings per share calculation) 114.2 125.3 138.4 Basic (loss) earnings per share attributable to Realogy Holdings shareholders: Basic (loss) earnings per share from continuing operations $ (1.06) $ 1.15 $ 3.11 Basic (loss) earnings per share from discontinued operations (0.59) (0.05) 0.04 Basic (loss) earnings per share $ (1.65) $ 1.10 $ 3.15 Diluted (loss) earnings per share attributable to Realogy Holdings shareholders: Diluted (loss) earnings per share from continuing operations $ (1.06) $ 1.14 $ 3.07 Diluted (loss) earnings per share from discontinued operations (0.59) (0.05) 0.04 Diluted (loss) earnings per share $ (1.65) $ 1.09 $ 3.11 _______________ (a) The Company was in a net loss position for the year ended December 31, 2019 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 (see Note 14, "Stock-Based Compensation", for outstanding equity awards as of December 31, 2019). (b) The years ended December 31, 2018 and 2017, respectively, exclude 6.9 million and 5.3 million shares of common stock issuable for incentive equity awards which includes performance share units based on the achievement of target amounts, that are anti-dilutive to the diluted earnings per share computation. Under the 2017, 2018 and 2019 share repurchase programs, the Company's Board of Directors authorized up to $825 million of the Company’s common stock. In the first quarter of 2019, the Company repurchased and retired 1.2 million shares of common stock for $20 million at a weighted average market price of $17.21 per share. The Company did not repurchase any shares under the share repurchase programs during the second, third and fourth quarters of 2019. For the year ended December 31, 2018, the Company repurchased and retired 17.9 million shares of common stock for $402 million at a weighted average market price of $22.47 per share. For the year ended December 31, 2017, the Company repurchased and retired 9.4 million shares of common stock for $276 million at a weighted average market price of $29.38 per share. The purchase of shares under these plans reduce the weighted-average number of shares outstanding in the basic earnings per share calculation. |
Risk Management and Fair Value
Risk Management and Fair Value of Financial Instruments (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Risk Management and Fair Value of Financial Instruments [Abstract] | |
Risk Management and Fair Value of Financial Instruments | RISK MANAGEMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS RISK MANAGEMENT The following is a description of the Company’s risk management policies. Interest Rate Risk The Company is exposed to market risk from changes in interest rates primarily through senior secured debt. At December 31, 2019, the Company's primary interest rate exposure was to interest rate fluctuations, specifically LIBOR, due to its impact on variable rate borrowings of Revolving Credit Facility and Term Loan B under the Senior Secured Credit Agreement and Term Loan A Facility. At December 31, 2019, the Company had variable interest rate long-term debt, which was based on LIBOR, from the outstanding term loans and revolver under its Senior Secured Credit Facility and Term Loan A Facility of $1,965 million. The Company has interest rate swaps with an aggregate notional value of $1,600 million to manage a portion of the Company's exposure to changes in interest rate associated with variable rate borrowings. The fixed interest rates on the swaps range from 2.07% to 3.11%. Although the Company has entered into these interest rate swaps, involving the exchange of floating for fixed rate interest payments, such interest rate swaps do not eliminate interest rate volatility for all of the Company's variable rate indebtedness at December 31, 2019. In addition, the fair value of the interest rate swaps is also subject to movements in LIBOR and will fluctuate in future periods. The Company has recognized a liability of $47 million for the fair value of the interest rate swaps at December 31, 2019. Therefore, an increase in the LIBOR yield curve could increase the fair value of the interest rate swaps and decrease interest expense. Credit Risk and Exposure The Company is exposed to counterparty credit risk in the event of nonperformance by counterparties to various agreements and sales transactions. The Company manages such risk by evaluating the financial position and creditworthiness of such counterparties and by requiring collateral in instances in which financing is provided. The Company mitigates counterparty credit risk associated with its derivative contracts by monitoring the amounts at risk with each counterparty to such contracts, periodically evaluating counterparty creditworthiness and financial position, and where possible, dispersing its risk among multiple counterparties. As of December 31, 2019, there were no significant concentrations of credit risk with any individual counterparty or a group of counterparties. The Company actively monitors the credit risk associated with the Company’s receivables. Market Risk Exposure Realogy Brokerage Group owns real estate brokerage offices located in and around large metropolitan areas in the U.S. Realogy Brokerage Group has more offices and realizes more of its revenues in California, Florida and the New York metropolitan area than any other regions of the country. For the year ended December 31, 2019, Realogy Brokerage Group generated approximately 25% of its revenues from California, 22% from the New York metropolitan area and 10% from Florida. For the year ended December 31, 2018, Realogy Brokerage Group generated approximately 27% of its revenues from California, 20% from the New York metropolitan area and 9% from Florida. For the year ended December 31, 2017, Realogy Brokerage Group generated approximately 27% of its revenues from California, 22% from the New York metropolitan area and 9% from Florida. 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 December 31, 2019, the Company had interest rate swaps with an aggregate notional value of $1,600 million to offset the variability in cash flows resulting from the term loan facilities as follows: Notional Value (in millions) Commencement Date Expiration Date $600 August 2015 August 2020 $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 Consolidated Statements of Operations. The fair value of derivative instruments was as follows: Not Designated as Hedging Instruments Balance Sheet Location December 31, 2019 December 31, 2018 Interest rate swap contracts Other non-current assets $ — $ 6 Other current and non-current liabilities 47 16 The effect of derivative instruments on earnings was as follows: Derivative Instruments Not Location of (Gain) or Loss Recognized for Derivative Instruments (Gain) or Loss Recognized on Derivatives Year Ended December 31, 2019 2018 2017 Interest rate swap contracts Interest expense $ 39 $ 4 $ (4) 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 December 31, 2019 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) $ 2 $ — $ — $ 2 Interest rate swaps (included in other current and non-current liabilities) — 47 — 47 Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) — — 4 4 The following table summarizes fair value measurements by level at December 31, 2018 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) $ 2 $ — $ — $ 2 Interest rate swaps (included in other non-current assets) — 6 — 6 Interest rate swaps (included in other non-current liabilities) — 16 — 16 Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) — — 10 10 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, 2018 $ 10 Additions: contingent consideration related to acquisitions completed during the period — Reductions: payments of contingent consideration (4) Changes in fair value (reflected in general and administrative expenses) (2) Fair value of contingent consideration at December 31, 2019 $ 4 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: December 31, 2019 December 31, 2018 Debt Principal Amount Estimated Principal Amount Estimated Senior Secured Credit Facility: Revolving Credit Facility $ 190 $ 190 $ 270 $ 270 Term Loan B 1,058 1,048 1,069 1,010 Term Loan A Facility: Term Loan A 717 705 736 707 4.50% Senior Notes — — 450 447 5.25% Senior Notes 550 557 550 524 4.875% Senior Notes 407 401 500 434 9.375% Senior Notes 550 572 — — _______________ (a) The fair value of the Company's indebtedness is categorized as Level II. |
Segment Information (Notes)
Segment Information (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
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, 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) (b) Year Ended December 31, 2019 2018 2017 Realogy Franchise Group $ 803 $ 820 $ 830 Realogy Brokerage Group 4,409 4,607 4,643 Realogy Title Group 596 580 570 Realogy Leads Group 83 81 78 Corporate and Other (c) (293) (306) (311) Total Company $ 5,598 $ 5,782 $ 5,810 _______________ (a) Transactions between segments are eliminated in consolidation. Revenues for Realogy Franchise Group include intercompany royalties and marketing fees paid by Realogy Brokerage Group of $293 million, $306 million and $311 million for the years ended December 31, 2019, 2018 and 2017, respectively. Such amounts are eliminated through the Corporate and Other line. (b) Revenues for Realo gy Leads Group include intercompany referral commissions paid by Realogy Brokerage Group of $18 million for each of the years ended December 31, 2019, 2018 and 2017. Such amounts are recorded as contra-revenues by Realogy Brokerage Group. There are no other material intersegment transactions. (c) Includes the elimination of transactions between segments. Set forth in the tables below is a reconciliation of Net (loss) income to Operating EBITDA and Operating EBITDA presented by reportable segment for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Net (loss) income attributable to Realogy Holdings and Realogy Group $ (188) $ 137 $ 431 Less: Net (loss) income from discontinued operations (67) (6) 6 Add: Income tax (benefit) expense from continuing operations (a) (22) 67 (66) (Loss) income from continuing operations before income taxes (143) 210 359 Add: Depreciation and amortization (b) 169 166 169 Interest expense, net 249 189 157 Restructuring costs, net (c) 42 47 12 Impairments (d) 249 — — Former parent legacy cost (benefit) (e) 1 4 (10) (Gain) loss on the early extinguishment of debt (e) (5) 7 5 Operating EBITDA $ 562 $ 623 $ 692 Operating EBITDA Year Ended December 31, 2019 2018 2017 Realogy Franchise Group $ 535 $ 564 $ 560 Realogy Brokerage Group (f) 4 44 135 Realogy Title Group 68 49 59 Realogy Leads Group 53 51 45 Corporate and Other (e)(g) (98) (85) (107) Total $ 562 $ 623 $ 692 ______________ (a) Income tax benefit for the year ended December 31, 2017 reflects the impact of the 2017 Tax Act. (b) Depreciation and amortization for the years ended December 31, 2018 and 2017 includes $2 million and $3 million, respectively, of amortization expense related to Guaranteed Rate Affinity's purchase accounting included in the "Equity in (earnings) losses of unconsolidated entities" line on the Consolidated Statement of Operations. (c) The year ended December 31, 2019 includes restructuring charges of $2 million at Realogy Franchise Group, $25 million at Realogy Brokerage Group, $3 million at Realogy Title Group, $2 million at Realogy Leads Group and $10 million at Corporate and Other. The year ended December 31, 2018 includes restructuring charges of $3 million at Realogy Franchise Group, $37 million at Realogy Brokerage Group, $4 million at Realogy Title Group and $3 million at Corporate and Other. The year ended December 31, 2017 includes restructuring charges of $1 million at Realogy Franchise Group, $9 million at Realogy Brokerage Group, $1 million at Realogy Title Group and $1 million at Corporate and Other. (d) Impairments for the year ended December 31, 2019 includes a goodwill impairment charge of $237 million at Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 2, "Summary of Significant Accounting Policies", for additional information). In addition, other impairment charges, primarily related to lease asset impairments, of $12 million were incurred for the year ended December 31, 2019. (e) Former parent legacy items and (Gain) loss on the early extinguishment of debt are recorded in Corporate and Other. (f) Includes $22 million of equity earnings from PHH Home Loans for the year ended December 31, 2017. (g) Includes the elimination of transactions between segments. Depreciation and Amortization Year Ended December 31, 2019 2018 2017 Realogy Franchise Group $ 77 $ 77 $ 79 Realogy Brokerage Group 54 51 50 Realogy Title Group 13 13 16 Realogy Leads Group 1 2 1 Corporate and Other 24 21 20 Total Company $ 169 $ 164 $ 166 Segment Assets As of December 31, 2019 2018 Realogy Franchise Group $ 4,317 $ 4,388 Realogy Brokerage Group 1,448 1,228 Realogy Title Group 576 492 Realogy Leads Group 192 193 Corporate and Other 260 190 Assets - held for sale 750 799 Total Company $ 7,543 $ 7,290 Capital Expenditures Year Ended December 31, 2019 2018 2017 Realogy Franchise Group $ 19 $ 10 $ 9 Realogy Brokerage Group 56 44 44 Realogy Title Group 10 11 13 Realogy Leads Group 2 — 2 Corporate and Other 21 27 22 Total Company $ 108 $ 92 $ 90 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Revision of Third Quarter 2019 Financial Statements The Company performed an interim impairment analysis of goodwill and indefinite-lived intangible assets as of September 1, 2019 and early adopted the new goodwill guidance in connection with this assessment. The new standard has a new requirement that calls for the impairment charge and deferred tax effect to be adjusted using the "simultaneous equation method" which effectively grosses up the goodwill impairment charge to account for the related income tax benefit so that the resulting carrying value does not exceed the calculated fair value. When the Company recorded the impairment charge of $180 million for the Realogy Brokerage Group in the third quarter it did not apply the simultaneous equation method, which resulted in an understatement of the non-cash impairment charge for the quarter ended September 30, 2019. The Company evaluated the impact of the revision in accordance with SEC Staff Accounting Bulletin (SAB) No. 99, "Materiality" and concluded that it was not material to the third quarter 2019 reporting period. As such, the revision is reflected below and will be included in the third quarter 2020 Form 10-Q containing such financial information. As a result of the pending sale of Cartus Relocation Services, the Company met the held for sale requirements under ASC 360 and the discontinued operations criteria under ASC 205 in the fourth quarter of 2019. Therefore, amounts reported in the Company's Form 10-Q for the third quarter of 2019 were not adjusted for discontinued operations. The table below includes the "revised" numbers for the third quarter of 2019 as presented in the third quarter as well as "revised and adjusted for discontinued operations" to reflect the impact of discontinued operations as presented in the 10-K for the year ended December 31, 2019. The impact of the revision to the Condensed Consolidated Statements of Operations as filed in the Company's Form 10-Q for the three and nine months ended September 30, 2019, as well as for the three and nine months ended September 30, 2019 as a result of the revision are as follows: Three Months Ended September 30, 2019 As Previously Reported Adjustment Revised Revised and adjusted for discontinued operations Expenses Impairments $ 183 $ 57 $ 240 $ 240 Total expenses 1,713 57 1,770 1,700 Loss from continuing operations before income taxes, equity in earnings and noncontrolling interests (84) (57) (141) (150) Income tax benefit from continuing operations (8) (14) (22) (23) Net loss (69) (43) (112) (112) Net loss attributable to Realogy Holdings and Realogy Group $ (70) $ (43) $ (113) $ (113) Loss per share attributable to Realogy Holdings shareholders: Basic loss per share $ (0.61) $ (0.38) $ (0.99) $ (0.99) Diluted loss per share $ (0.61) $ (0.38) $ (0.99) $ (0.99) Nine Months Ended September 30, 2019 As Previously Reported Adjustment Revised Revised and adjusted for discontinued operations Expenses Impairments $ 186 $ 57 $ 243 $ 243 Total expenses 4,600 57 4,657 4,441 Loss from continuing operations before income taxes, equity in earnings and noncontrolling interests (122) (57) (179) (173) Income tax benefit from continuing operations (9) (14) (23) (22) Net loss (98) (43) (141) (141) Net loss attributable to Realogy Holdings and Realogy Group $ (100) $ (43) $ (143) $ (143) Loss per share attributable to Realogy Holdings shareholders: Basic loss per share $ (0.88) $ (0.37) $ (1.25) $ (1.25) Diluted loss per share $ (0.88) $ (0.37) $ (1.25) $ (1.25) The impact of the change to the Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2019 as a result of the revision is as follows: Three Months Ended September 30, 2019 As Previously Reported Adjustment Revised Revised and adjusted for discontinued operations Net loss $ (69) $ (43) $ (112) $ (112) Comprehensive loss (70) (43) (113) (113) Comprehensive loss attributable to Realogy Holdings and Realogy Group $ (71) $ (43) $ (114) $ (114) Nine Months Ended September 30, 2019 As Previously Reported Adjustment Revised Revised and adjusted for discontinued operations Net loss $ (98) $ (43) $ (141) $ (141) Comprehensive loss (98) (43) (141) (141) Comprehensive loss attributable to Realogy Holdings and Realogy Group $ (100) $ (43) $ (143) $ (143) The impact of the change to the Condensed Consolidated Balance Sheets as of September 30, 2019 as a result of the revision is as follows: As of September 30, 2019 As Previously Reported Adjustment Revised Revised and adjusted for discontinued operations ASSETS Goodwill $ 3,532 $ (57) $ 3,475 $ 3,300 Total assets 7,717 (57) 7,660 7,660 LIABILITIES AND EQUITY Deferred income taxes 374 (14) 360 360 Total liabilities 5,534 (14) 5,520 5,520 Accumulated deficit (2,607) (43) (2,650) (2,650) Total stockholders' equity 2,179 (43) 2,136 2,136 Total equity 2,183 (43) 2,140 2,140 Total liabilities and equity $ 7,717 $ (57) $ 7,660 $ 7,660 The impact of the change to the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 as a result of the revision is as follows: Nine Months Ended September 30, 2019 As Previously Reported Adjustment Revised Revised and adjusted for discontinued operations Operating Activities Net loss from continuing operations $ (98) $ (43) $ (141) $ (136) Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities: Deferred income taxes (16) (14) (30) (29) Impairments 186 57 243 243 Net cash provided by operating activities $ 230 $ — $ 230 $ 230 Selected Quarterly Financial Data Provided below is selected unaudited quarterly financial data for 2019 and 2018. 2019 First (d) Second (d) Third (d) Fourth Net revenues Realogy Franchise Group $ 163 $ 234 $ 216 $ 190 Realogy Brokerage Group 816 1,331 1,222 1,040 Realogy Title Group 114 160 170 152 Realogy Leads Group 16 26 24 17 Corporate and Other (a) (55) (87) (82) (69) Total Company $ 1,054 $ 1,664 $ 1,550 $ 1,330 (Loss) income from continuing operations before income taxes, equity in earnings and noncontrolling interests (b) Realogy Franchise Group $ 71 $ 142 $ 134 $ 108 Realogy Brokerage Group (80) 25 (231) (38) Realogy Title Group (13) 22 21 7 Realogy Leads Group 8 16 16 11 Corporate and Other (104) (110) (90) (73) Total Company $ (118) $ 95 $ (150) $ 15 Net (loss) income from continuing operations attributable to Realogy Holdings shareholders $ (85) $ 68 $ (121) $ 17 Net (loss) income from discontinued operations attributable to Realogy Holdings shareholders (14) 1 8 (62) Net (loss) income attributable to Realogy Holdings and Realogy Group $ (99) $ 69 $ (113) $ (45) (Loss) earnings per share attributable to Realogy Holdings (c) : Basic (loss) earnings per share from continuing operations $ (0.75) $ 0.59 $ (1.06) $ 0.15 Basic (loss) earnings per share from discontinued operations (0.12) 0.01 0.07 (0.54) Basic (loss) earnings per share (0.87) 0.60 (0.99) (0.39) Diluted (loss) earnings per share from continuing operations (0.75) 0.59 (1.06) 0.15 Diluted (loss) earnings per share from discontinued operations (0.12) 0.01 0.07 (0.54) Diluted (loss) earnings per share $ (0.87) $ 0.60 $ (0.99) $ (0.39) _______________ (a) Represents the elimination of transactions primarily between Realogy Franchise Group and Realogy Brokerage Group. (b) The quarterly results include the following: • restructuring charges of $9 million, $9 million, $11 million and $13 million in the first, second, third and fourth quarters, respectively; • a goodwill impairment charge of $237 million in the third quarter which reduced the net carrying value of Realogy Brokerage Group by $180 million after accounting for the related income tax benefit of $57 million and $1 million, $2 million, $3 million and $6 million of other impairment charges primarily related to lease asset impairments incurred in the first, second, third and fourth quarters, respectively; • former parent legacy net cost of $1 million in the third quarter; and • a loss on the early extinguishment of debt of $5 million in the first quarter and a gain on the early extinguishment of debt of $10 million in the third quarter. (c) Basic and diluted EPS amounts in each quarter are computed using the weighted-average number of shares outstanding during that quarter, while basic and diluted EPS for the full year is computed using the weighted-average number of shares outstanding during the year. Therefore, the sum of the four quarters’ basic or diluted EPS may not equal the full year basic or diluted EPS (see Note 17 "Earnings (Loss) Per Share" for further information). (d) As a result of the pending sale of Cartus Relocation Services, the Company met held for sale requirements under ASC 360 and discontinued operations under ASC 205 in the fourth quarter of 2019. Therefore, amounts presented in the Company's Form 10-Qs for the periods prior to the fourth quarter of 2019 did not reflect discontinued operations, but have been adjusted to reflect discontinued operations in the tables above. 2018 First (d) Second (d) Third (d) Fourth (d) Net revenues Realogy Franchise Group $ 176 $ 237 $ 221 $ 186 Realogy Brokerage Group 917 1,408 1,268 1,014 Realogy Title Group 120 162 162 136 Realogy Leads Group 16 25 23 17 Corporate and Other (a) (63) (92) (83) (68) Total Company $ 1,166 $ 1,740 $ 1,591 $ 1,285 (Loss) income from continuing operations before income taxes, equity in earnings and noncontrolling interests (b) Realogy Franchise Group $ 85 $ 152 $ 141 $ 107 Realogy Brokerage Group (76) 45 22 (37) Realogy Title Group (8) 26 18 1 Realogy Leads Group 7 17 16 9 Corporate and Other (66) (73) (67) (102) Total Company $ (58) $ 167 $ 130 $ (22) Net (loss) income from continuing operations attributable to Realogy Holdings shareholders $ (49) $ 118 $ 93 $ (19) Net (loss) income from discontinued operations attributable to Realogy Holdings shareholders (18) 5 10 (3) Net (loss) income attributable to Realogy Holdings and Realogy Group $ (67) $ 123 $ 103 $ (22) (Loss) earnings per share attributable to Realogy Holdings (c): Basic (loss) earnings per share from continuing operations $ (0.38) $ 0.93 $ 0.76 $ (0.16) Basic (loss) earnings per share from discontinued operations (0.13) 0.04 0.08 (0.03) Basic (loss) earnings per share (0.51) 0.97 0.84 (0.19) Diluted (loss) earnings per share from continuing operations (0.38) 0.92 0.75 (0.16) Diluted (loss) earnings per share from discontinued operations (0.13) 0.04 0.08 (0.03) Diluted (loss) earnings per share $ (0.51) $ 0.96 $ 0.83 $ (0.19) _______________ (a) Represents the elimination of transactions primarily between Realogy Franchise Group and Realogy Brokerage Group. (b) The quarterly results include the following : • restructuring charges of $22 million, $5 million, $9 million and $11 million in the first, second, third and fourth quarters, respectively; • former parent legacy net cost of $4 million in the fourth quarter; and • a loss on the early extinguishment of debt of $7 million in the first quarter. (c) Basic and diluted EPS amounts in each quarter are computed using the weighted-average number of shares outstanding during that quarter, while basic and diluted EPS for the full year is computed using the weighted-average number of shares outstanding during the year. Therefore, the sum of the four quarters’ basic or diluted EPS may not equal the full year basic or diluted EPS. (d) As a result of the pending sale of Cartus Relocation Services, the Company met held for sale requirements under ASC 360 and discontinued operations under ASC 205 in the fourth quarter of 2019. Therefore, amounts presented in the Company's Form 10-Qs for the periods prior to the fourth quarter of 2019 did not reflect discontinued operations, but have been adjusted to reflect discontinued operations in the tables above. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | USE OF ESTIMATES In presenting the consolidated financial statements, management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ materially from those estimates. |
Discontinued Operations, Policy | ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results when the business is sold and classified as held for sale, in accordance with the criteria of Accounting Standard Codification (“ASC”) Topic 205 Presentation of Financial Statements ("ASC 205") and ASC Topic 360 Property, Plant and Equipment (“ASC 360”). Assets and liabilities of a business classified as held for sale are recorded at the lower of its carrying amount or estimated fair value less cost to sell and depreciation ceases on the date that the held for sale criteria are met. If the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized. Assets and liabilities related to a business classified as held for sale are segregated in the current and prior balance sheets in the period in which the business is classified as held for sale. The results of discontinued operations are reported in "Net (loss) income from discontinued operations" in the accompanying Consolidated Statements of Operations for the current and prior periods commencing in the period in which the business meets the criteria, and includes any gain or loss recognized on closing, or adjustment of the carrying amount to fair value less cost to sell. Transactions between the businesses held for sale and businesses held for use that are expected to continue to exist after the disposal are not eliminated to appropriately reflect the continuing operations and balances held for sale. See Note 3, "Discontinued Operations", for further discussion. |
Consolidation, Policy [Policy Text Block] | CONSOLIDATION The Company consolidates any variable interest entity ("VIE") for which it is the primary beneficiary with a controlling financial interest. Also, the Company consolidates an entity not deemed a VIE if its ownership, direct or indirect, exceeds 50% of the outstanding voting shares of an entity and/or it has the ability to control the financial or operating policies through its voting rights, board representation or other similar rights. For entities where the Company does not have a controlling interest (financial or operating), the investments in such entities are accounted for using the equity method or at fair value with changes in fair value recognized in net income, as appropriate. The Company applies the equity method of accounting when it has the ability to exercise significant influence over operating and financial policies of an investee. The |
Cash and Cash Equivalents, Policy [Policy Text Block] | CASH AND CASH EQUIVALENTS The Company considers highly liquid investments with remaining maturities not exceeding three months at the date of purchase to be cash equivalents. |
Receivables, Policy [Policy Text Block] | 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 developments 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. |
Advertising Costs, Policy [Policy Text Block] | ADVERTISING EXPENSES Advertising costs are generally expensed in the period incurred. Advertising expenses, recorded within the marketing expense line item on the Company’s Consolidated Statements of Operations, were approximately $196 million, $207 million and $211 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Deferred Charges, Policy [Policy Text Block] | DEBT ISSUANCE COSTS Debt issuance costs include costs incurred in connection with obtaining debt and extending existing debt. These financing costs are presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount, with the exception of the debt issuance costs related to the Revolving Credit Facility which are classified as a deferred financing asset within other assets. The debt issuance costs are amortized via the effective interest method and the amortization period is the life of the related debt. |
Income Tax, Policy [Policy Text Block] | INCOME TAXES The Company’s provision for income taxes is determined using the asset and liability method, under which deferred tax assets and liabilities are calculated based upon the temporary differences between the financial statement and income tax bases of assets and liabilities using currently enacted tax rates. These differences are based upon estimated differences between the book and tax basis of the assets and liabilities for the Company. Certain tax assets and liabilities of the Company may be adjusted in connection with the finalization of income tax audits. The Company’s deferred tax assets are recorded net of a valuation allowance when, based on the weight of available evidence, it is more likely than not that all or some portion of the recorded deferred tax balances will not be realized in future periods. Decreases to the valuation allowance are recorded as reductions to the Company’s provision for income taxes and increases to the valuation allowance result in additional provision for income taxes. |
Derivatives, Policy [Policy Text Block] | DERIVATIVE INSTRUMENTS The Company records derivatives and hedging activities on the balance sheet at their respective fair values. The Company uses interest rate swaps to manage its exposure to future interest rate volatility associated with its variable rate borrowings. The Company has not elected to utilize hedge accounting for these instruments; therefore, any change in fair value is recorded in the Consolidated Statements of Operations. However, the fluctuations in the value of these instruments generally offset the impact of changes in the value of the underlying risk that they are intended to economically hedge. |
Equity Method Investments [Policy Text Block] | INVESTMENTS Guaranteed Rate Affinity, LLC ("Guaranteed Rate Affinity") originates and markets its mortgage lending services to the Company's real estate brokerage as well as other real estate brokerage companies across the country. Guaranteed Rate, Inc. ("Guaranteed Rate") owns a controlling 50.1% stake of Guaranteed Rate Affinity and the Company owns 49.9%. The Company has certain governance rights related to the joint venture, however it does not have co ntrol of the day-to-day operations of Guaranteed Rate Affinity. During the first quarter of 2018, the Company's interest in PHH Home Loans LLC ("PHH Home Loans") , the Company's former 49.9% mortgage joint venture, was sold to a subsidiary of PHH Corporation and the Company received net cash proceeds of $19 million reducing the investment balance in PHH Home Loans to zero. Guaranteed Rate Affinity began doing business in August 2017 on a phased-in basis. The equity earnings or losses related to PHH Home Loans were included in the financial results of Realogy Brokerage Group and the equity earnings or losses related to Guaranteed Rate Affinity are included in the financial results of Realogy Title Group. At December 31, 2019 and 2018, the Company had various equity method investments aggregating $69 million and $51 million, respectively, which are recorded within other non-current assets on the accompanying Consolidated Balance Sheets. The $69 million investment balance at December 31, 2019 included $60 million for the Company's investment in Guaranteed Rate Affinity. The $51 million investment balance at December 31, 2018 included $43 million for the Company's investment in Guaranteed Rate Affinity. For the year ended December 31, 2019, the Company recorded equity earnings of $18 million at Realogy Title Group primarily related to earnings from the operations of Guaranteed Rate Affinity. For the year ended December 31, 2018, the Company recorded equity losses of $4 million at Realogy Title Group primarily related to losses from the operations of Guaranteed Rate Affinity. For the year ended December 31, 2017, the Company recorded equity earnings of $18 million which consisted of $35 million of earnings from the sale of PHH Home Loans' assets to Guaranteed Rate Affinity, partially offset by $7 million of exit costs and losses of $6 million from the continuing operations of PHH Home Loans. In addition, there was a $4 million loss from equity method investments at Realogy Title Group primarily related to costs associated with the start up of operations of Guaranteed Rate Affinity, including $3 million of amortization of intangible assets recorded in purchase accounting. The Company received $3 million, $3 million and $63 million in cash dividends from equity method investments during the years ended December 31, 2019, 2018 and 2017, respectively. The Company invested $2 million, $4 million and $55 million of cash into Guaranteed Rate Affinity during the years ended December 31, 2019, 2018 and 2017, respectively. |
Property, Plant and Equipment, Policy [Policy Text Block] | PROPERTY AND EQUIPMENT Property and equipment (including leasehold improvements) are initially recorded at cost, net of accumulated depreciation and amortization. Depreciation, recorded as a component of depreciation and amortization on the Consolidated Statements of Operations, is computed utilizing the straight-line method over the estimated useful lives of the related assets. Amortization of leasehold improvements, also recorded as a component of depreciation and amortization, is computed utilizing the straight-line method over the estimated benefit period of the related assets or the lease term, if shorter. Useful lives are 30 years for buildings, up to 20 years for leasehold improvements, and from 3 to 7 years for furniture, fixtures and equipment. The Company capitalizes the costs of software developed for internal use which commences during the development phase of the project. The Company amortizes software developed or obtained for internal use on a straight-line basis, generally from 1 to 5 years, when such software is ready for use. The net carrying value of software developed or obtained for internal use was $97 million and $93 million at December 31, 2019 and 2018, respectively. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | IMPAIRMENT OF GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS Goodwill represents the excess of acquisition costs over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Other indefinite-lived intangible assets primarily consist of trademarks acquired in business combinations. Goodwill and other indefinite-lived assets are not amortized, but are subject to impairment testing. The aggregate carrying values of our goodwill and other indefinite-lived intangible assets were $3,300 million and $692 million, respectively, at December 31, 2019 and are subject to an impairment assessment annually as of October 1, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. This assessment compares carrying values of the goodwill reporting units and other indefinite lived intangible assets to their respective fair values and, when appropriate, the carrying value is reduced to fair value. In testing goodwill, the fair value of each reporting unit is estimated using the income approach, a discounted cash flow approach. For the other indefinite lived intangible assets, fair value is estimated using the relief from royalty method. Management utilizes long-term cash flow forecasts and the Company's annual operating plans adjusted for terminal value assumptions. The fair value of the Company's reporting units and other indefinite lived intangible assets are determined utilizing the best estimate of future revenues, operating expenses including commission expense, market and general economic conditions, trends in the industry, as well as assumptions that management believes marketplace participants would utilize including discount rates, cost of capital, trademark royalty rates, and long-term growth rates. The trademark royalty rate was determined by reviewing similar trademark agreements with third parties. Although management believes that assumptions are reasonable, actual results may vary significantly. These impairment assessments involve the use of accounting estimates and assumptions, changes in which could materially impact our financial condition or operating performance if actual results differ from such estimates and assumptions. To address this uncertainty, a sensitivity analysis is performed on key estimates and assumptions. During the third quarter of 2019, management determined that the decrease in the stock price of the Company and the impact on future earnings related to the discontinuation of the USAA affinity program qualified as triggering events for all of its reporting units and accordingly management performed an impairment assessment of goodwill and other indefinite-lived intangible assets as of September 1, 2019. The impairment assessment indicated that the carrying value of Realogy Broker age Group exceeded its estimated fair value by $180 million primarily as a result of a reduction in Realogy Broker age Group's long-term forecast. Accounting Standard Update No. 2017-04 (Topic 350), "Simplifying the Test of Goodwill Impairment", which the Company early adopted in the third quarter of 2019, requires that the impairment charge and deferred tax effect are calculated using the simultaneous equation method which effectively grosses up the goodwill impairment charge to account for the related tax benefit so that the resulting carrying value does not exceed the calculated fair value. As a result, management recognized a goodwill impairment charge to reduce goodwill at Realogy Brokerage Group by $237 million offset by an income tax benefit of $57 million resulting in a net reduction in carrying value of $180 million. The results of the Company's interim impairment test indicated no other impairment charges were required for the other reporting units or other indefinite-lived intangibles. Management evaluated the effect of lowering the estimated fair value for each of the passing reporting units by 10% and determined no impairment of goodwill or other indefinite-lived intangible assets would have been recognized under this evaluation. Based upon the impairment assessment performed in the fourth quarter of 2019, 2018 and 2017, there was no impairment of goodwill or other indefinite-lived intangible assets for these years. Management evaluated the effect of lowering the estimated fair value for each of the passing reporting units by 10% and determined no impairment of goodwill or other indefinite-lived intangible assets would have been recognized under this evaluation for 2018 or 2017. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | STOCK-BASED COMPENSATION The Company grants stock-based awards to certain senior management, employees and directors including non-qualified stock options, restricted stock units and performance share units . The fair value of non-qualified stock options is estimated using the Black-Scholes option pricing model on the grant date and is recognized as expense over the service period based on the vesting requirements. The fair value of restricted stock units and performance share units without a market condition is measured based on the closing price of the Company's common stock on the grant date and is recognized as expense over the service period of the award, or when requisite performance metrics or milestones are probable of being achieved . The fair value of awards with a market condition are estimated using the Monte Carlo simulation method and expense is recognized on a straight-line basis over the requisite service period of the award. The Company recognizes forfeitures as they occur. Determining the fair value of stock-based awards at the grant date requires considerable judgment, including estimating expected volatility and expected term, risk-free rate. |
New Accounting Pronouncements, Policy [Policy Text Block] | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Adoption of the New Leasing Standard In February 2016, the FASB issued Accounting Standard Update No. 2016-02 (Topic 842) "Leases" (the "new leasing standard") which requires virtually all leases to be recognized on the balance sheet. Effective January 1, 2019, the Company adopted the new leasing standard using the modified retrospective transition approach with optional transition relief and recognized the cumulative effect of applying the new leasing standard to existing contracts on the balance sheet on January 1, 2019. Therefore, results for reporting periods beginning after January 1, 2019 are presented under the new leasing standard; however, the comparative prior period amounts have not been restated and continue to be reported in accordance with historical accounting under ASC Topic 840. The most significant effects of adoption of the new leasing standard relate to the recognition of new right-of-use assets and lease liabilities on the balance sheet for operating leases. The new leasing standard did not impact our Consolidated Statement of Operations and Consolidated Statement of Cash Flows. The impact of the changes to the Consolidated Balance Sheets for the adoption of the new leasing standard were as follows: Balance Sheet accounts prior to the new leasing standard adoption adjustments Adjustments due to the adoption of the new leasing standard Balance Sheet accounts after the new leasing standard adoption adjustments ASSETS Current assets: Other current assets $ 140 $ (13) $ 127 Current assets - held for sale 338 (1) 337 Total current assets 768 (14) 754 Operating lease assets, net — 525 525 Other non-current assets 272 — 272 Non-current assets - held for sale 461 41 502 Total assets (a) $ 7,290 $ 552 $ 7,842 LIABILITIES AND EQUITY Current liabilities: Current portion of operating lease liabilities $ — $ 126 $ 126 Accrued expenses and other current liabilities 344 (12) 332 Current liabilities - held for sale 352 — 352 Total current liabilities 1,527 114 1,641 Long-term operating lease liabilities — 458 458 Other non-current liabilities 256 (60) 196 Non-current liabilities - held for sale 3 40 43 Total liabilities 4,975 552 5,527 Total equity 2,315 — 2,315 Total liabilities and equity $ 7,290 $ 552 $ 7,842 _______________ (a) The $552 million adjustment to Total assets due to the adoption of the new leasing standard consists of $414 million at Realogy Brokerage Group, $52 million at Corporate and Other, $46 million at Realogy Title Group and $40 million of assets held for sale related to the pending sale of Cartus' Relocation Services business. The Company elected a package of practical expedients that were consequently applied to all leases. The Company did not reassess whether expired or existing contracts contain leases under the new definition of a lease, lease classification for expired or existing leases, nor whether previously capitalized initial direct costs would qualify for capitalization under the new standard. Upon transition, the Company did not elect to use hindsight with respect to lease renewals and purchase options when accounting for existing leases, as well as assessing the impairment of right-of-use assets. Therefore, lease terms largely remained unchanged. In addition, the Company elected the short-term lease recognition exemption and did not recognize a lease obligation and right-of-use asset on its balance sheet for all leases with terms of 12 months or less. The Company elected the practical expedient to combine lease and non-lease components in total gross rent for all of its leases which resulted in a larger lease liability recorded on the balance sheet. Adoption of Other Accounting Pronouncements In January 2017, the FASB issued Accounting Standard Update No. 2017-04 (Topic 350), "Simplifying the Test of Goodwill Impairment." This update simplifies how the Company is required to test goodwill for impairment by eliminating step two, which requires a hypothetical purchase price allocation, from the goodwill impairment test. Under the new guidance, a goodwill impairment will equal the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance requires that the impairment charge and deferred tax effect are calculated using the simultaneous equation method which effectively grosses up the goodwill impairment charge to account for the related tax benefit so that the resulting carrying value does not exceed the calculated fair value. The standard is effective for interim or annual goodwill impairment tests during fiscal years beginning after December 15, 2019, with early adoption permitted, and should be applied prospectively. The Company elected to early adopt this standard as of September 1, 2019. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS The Company considers the applicability and impact of all Accounting Standards Updates. 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. |
Leases Lessee Disclosure (Polic
Leases Lessee Disclosure (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. At lease commencement, the Company records a liability for its lease obligation measured at the present value of future lease payments and a right-of-use asset equal to the lease liability adjusted for prepayments and lease incentives. The Company uses its collateralized incremental borrowing rate to calculate the present value of lease liabilities as most of its leases do not provide an implicit rate that is readily determinable. The Company does not recognize a lease obligation and right-of-use asset on its balance sheet for any leases with an initial term of 12 months or less. Some real estate leases include one or more options to renew or terminate a lease. The exercise of a lease renewal or termination option is assessed at commencement of the lease and only reflected in the lease term if the Company is reasonably certain to exercise the option. The Company has lease agreements that contain both lease and non-lease components, such as common area maintenance fees, and has made a policy election to combine both fixed lease and non-lease components in total gross rent for all of its leases. Expense for operating leases is recognized on a straight-line basis over the lease term. Finance lease assets are amortized on a straight-line basis over the shorter of the estimated useful life of the underlying asset or the lease term. The interest component of a finance lease is included in interest expense and recognized using the effective interest method over the lease term. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition, Policy | 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 Consolidated Statements of Operations and further disaggregated by business segment as follows: Years Ended December 31, 2019 vs December 31, 2018 Realogy Realogy Realogy Realogy Corporate Total 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Gross commission income (a) $ — $ — $ 4,330 $ 4,533 $ — $ — $ — $ — $ — $ — $ 4,330 $ 4,533 Service revenue (b) — — 11 9 579 564 83 81 — — 673 654 Franchise fees (c) 668 688 — — — — — — (282) (295) 386 393 Other (d) 135 132 68 65 17 16 — — (11) (11) 209 202 Net revenues $ 803 $ 820 $ 4,409 $ 4,607 $ 596 $ 580 $ 83 $ 81 $ (293) $ (306) $ 5,598 $ 5,782 Years Ended December 31, 2018 vs December 31, 2017 (e) Realogy Realogy Realogy Realogy Corporate Total 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Gross commission income (a) $ — $ — $ 4,533 $ 4,576 $ — $ — $ — $ — $ — $ — $ 4,533 $ 4,576 Service revenue (b) — — 9 9 564 551 81 78 — — 654 638 Franchise fees (c) 688 695 — — — — — — (295) (299) 393 396 Other (d) 132 135 65 58 16 19 — — (11) (12) 202 200 Net revenues $ 820 $ 830 $ 4,607 $ 4,643 $ 580 $ 570 $ 81 $ 78 $ (306) $ (311) $ 5,782 $ 5,810 _______________ (a) Approximately 80% of the Company's total net revenues is related to gross commission income at Realogy Brokerage Group, which is recognized at a point in time at the closing of a homesale transaction. (b) Approximately 10% of the Company's total net revenues is related to service fees primarily consisting of title and escrow fees at Realogy Title Group, which are recognized at a point in time at the closing of a homesale transaction. (c) Approximately 7% of the Company's total net revenues is related to franchise fees at Realogy Franchise Group, primarily domestic royalties, which are recognized at a point in time when the underlying franchisee revenue is earned (upon close of the homesale transaction). (d) Less than 5% of the Company's total net revenues is related to other revenue, which comprised of brand marketing funds received at Realogy Franchise Group from franchisees, third-party listing fees and other miscellaneous revenues across all of the business segments. (e) Amounts for the year ended December 31, 2017 have not been adjusted under the modified retrospective method. The Company's revenue streams are discussed further below by business segment: Realogy Franchise Group The Company franchises its real estate brands to real estate brokerage businesses that are independently owned and operated. Franchise revenue principally consists of royalty and marketing fees from the Company’s franchisees. The royalty received is primarily based on a gross percentage (generally 6%) of the franchisee’s gross commission income. Royalty fees are accrued as the underlying franchisee revenue is earned (upon close of the homesale transaction). Annual volume incentives given to certain franchisees on royalty fees are recorded as a reduction to revenue and are accrued for in relative proportion to the recognition of the underlying gross franchise revenue. Other sales incentives are generally recorded as a reduction to revenue ratably over the related performance period or from the date of issuance through the remaining life of the related franchise agreement. Franchise revenue also includes domestic initial franchise fees which are generally non-refundable and recognized by the Company as revenue upon the execution or opening of a new franchisee office to cover the upfront costs associated with opening the franchisee for business under one of Realogy’s brands. The Company also earns marketing fees from its franchisees and utilizes such fees to fund marketing campaigns on behalf of its franchisees. As such, brand marketing fund fees are recorded as deferred revenue when received and recognized into revenue as earned when these funds are spent on marketing activities. The balance for deferred brand marketing fund fees increased from $12 million at January 1, 2019 to $13 million at December 31, 2019 primarily due to additional fees received from franchisees, partially offset by amounts recognized into revenue matching expenses for marketing activities during the year ended December 31, 2019. The Company collects initial area development fees ("ADFs") for international territory transactions, which are recorded as deferred revenue when received and are classified as current or non-current liabilities in the Consolidated Balance Sheets based on the expected timing of revenue recognition. ADFs are 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. The balance for deferred ADFs decreased from $54 million at January 1, 2019 to $48 million at December 31, 2019 due to revenues of $8 million recognized during the year ended December 31, 2019 that were included in the deferred revenue balance at the beginning of the period, partially offset by $2 million of additional area development fees received during the year ended December 31, 2019. In addition, the Company recognizes a deferred asset for commissions paid to Realogy franchise sales employees upon the sale of a new franchise as these are considered costs of obtaining a contract with a customer that are expected to provide benefits to the Company for longer than one year. The Company classifies prepaid commissions as current or non-current assets in the Consolidated Balance Sheets based on the expected timing of recognizing expense. The amount of commissions is calculated as a percentage of the anticipated gross commission income of the new franchisee or ADF and is amortized over 30 years for domestic franchise agreements or the agreement term for international franchise agreements (generally 25 years). The amount of prepaid commissions was $24 million and $25 million at December 31, 2019 and 2018, respectively. Realogy Brokerage Group As an owner-operator of real estate brokerages, the Company assists home buyers and sellers in listing, marketing, selling and finding homes. Real estate commissions earned by the Company’s real estate brokerage business are recorded as revenue at a point in time which is upon the closing of a real estate transaction (i.e., purchase or sale of a home). These revenues are referred to as gross commission income. The commissions the Company pays to real estate agents are recognized concurrently with associated revenues and presented as the commission and other agent-related costs line item on the accompanying Consolidated Statements of Operations. The Company has relationships with developers, primarily in major cities, to provide marketing and brokerage services in new developments. New development closings generally have a development period of between 18 and 24 months from contracted date to closing. In some cases, the Company receives advanced commissions which are recorded as deferred revenue when received and recognized as revenue when the new development closes. The balance of advanced commissions related to developments decreased from $10 million at January 1, 2019 to $9 million at December 31, 2019 due to a $2 million decrease as a result of revenues recognized on units closed, partially offset by a $1 million increase related to additional commissions received for new developments. Realogy Title Group The Company provides title and closing services, which include title search procedures for title insurance policies, homesale escrow and other closing services. Title revenues and title and closing service fees are recorded at a point in time which occurs at the time a homesale transaction or refinancing closes. The Company also owns an underwriter of title insurance. For unaffiliated agents, the underwriter recognizes policy premium revenue on a gross basis (before deduction of agent commission) upon notice of policy issuance from the agent. For affiliated title agents, the underwriter recognizes the incremental policy premium revenue upon the effective date of the title policy as the agent commission revenue is already recognized by the affiliated title agent. Realogy Leads Group T he Company provides home buying and selling assistance to members of affinity organizations. The Company earns referral commission revenue primarily from real estate brokers for the home sale and purchase for affinity members, which is recognized at a point in time when the underlying property closes. Realogy Leads Group also manages the Realogy Broker Network, which is a network of real estate brokers consisting of our company owned brokerage operations, select franchisees and independent real estate brokers who have been approved to become members. Network fees are billed in advance and recognized into revenue on a straight-line basis each month during the membership period. The balance for deferred network fees increased from zero at January 1, 2019 to $3 million at December 31, 2019 due to a $13 million increase related to new network fees, partially offset by $10 million of revenues recognized during the year that were included in the deferred revenue balance at the beginning of the period. Contract Balances (Deferred Revenue) The following table shows the change in the Company's contract liabilities related to revenue contracts by reportable segment for the period: Year Ended December 31, 2019 Beginning Balance at January 1, 2019 Additions during the period Recognized as Revenue during the period Ending Balance at Realogy Franchise Group (a) $ 78 $ 118 $ (127) $ 69 Realogy Brokerage Group 14 8 (9) 13 Realogy Leads Group — 13 (10) 3 Total $ 92 $ 139 $ (146) $ 85 _______________ (a) Revenues recognized include intercompany marketing fees paid by Realogy Brokerage Group. The majority of the Company's contracts are transactional in nature or have a duration of one-year or less. Accordingly, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The impact of the changes to the Consolidated Balance Sheets for the adoption of the new leasing standard were as follows: Balance Sheet accounts prior to the new leasing standard adoption adjustments Adjustments due to the adoption of the new leasing standard Balance Sheet accounts after the new leasing standard adoption adjustments ASSETS Current assets: Other current assets $ 140 $ (13) $ 127 Current assets - held for sale 338 (1) 337 Total current assets 768 (14) 754 Operating lease assets, net — 525 525 Other non-current assets 272 — 272 Non-current assets - held for sale 461 41 502 Total assets (a) $ 7,290 $ 552 $ 7,842 LIABILITIES AND EQUITY Current liabilities: Current portion of operating lease liabilities $ — $ 126 $ 126 Accrued expenses and other current liabilities 344 (12) 332 Current liabilities - held for sale 352 — 352 Total current liabilities 1,527 114 1,641 Long-term operating lease liabilities — 458 458 Other non-current liabilities 256 (60) 196 Non-current liabilities - held for sale 3 40 43 Total liabilities 4,975 552 5,527 Total equity 2,315 — 2,315 Total liabilities and equity $ 7,290 $ 552 $ 7,842 _______________ (a) The $552 million adjustment to Total assets due to the adoption of the new leasing standard consists of $414 million at Realogy Brokerage Group, $52 million at Corporate and Other, $46 million at Realogy Title Group and $40 million of assets held for sale related to the pending sale of Cartus' Relocation Services business. |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table summarizes the operating results of discontinued operations described above and reflected within "Net (loss) income from discontinued operations" in the Company’s Consolidated Statements of Operations for each of the periods presented: Year Ended December 31, 2019 2018 2017 Net revenues $ 272 $ 297 $ 304 Total expenses 281 305 297 (Loss) income from discontinued operations (9) (8) 7 Estimated loss on the sale of discontinued operations (a) (22) — — Income tax expense (benefit) from discontinued operations (b) 36 (2) 1 Net (loss) income from discontinued operations $ (67) $ (6) $ 6 _______________ (a) Adjustment to record assets and liabilities held for sale at the lower of carrying value or fair value less any costs to sell based on the Purchase Agreement. (b) Income tax expense for the year ended December 31, 2019 relates to tax expense as a result of the expected taxable gain on the sale of Cartus Relocation Services, primarily as a result of the Company's low tax basis in goodwill, trademarks and other intangibles. Assets and liabilities held for sale related to discontinued operations presented in the Consolidated Balance Sheets at December 31, 2019 and 2018 are as follows: December 31, 2019 (a) 2018 Carrying amounts of the major classes of assets held for sale Cash and cash equivalents $ 28 $ 22 Restricted cash 3 11 Trade receivables 46 61 Relocation receivables 203 231 Other current assets 12 13 Total current assets 338 Property and equipment, net 36 31 Operating lease assets, net 36 — Goodwill 176 176 Trademarks 76 76 Other intangibles, net 156 174 Other non-current assets — 4 Total non-current assets 461 Allowance for reduction of assets held for sale (b) (22) Total assets classified as held for sale $ 750 $ 799 Carrying amounts of the major classes of liabilities held for sale Accounts payable $ 53 $ 64 Securitization obligations 206 231 Current portion of operating lease liabilities 6 — Accrued expenses and other current liabilities 62 57 Total current liabilities 352 Long-term operating lease liabilities 29 — Other non-current liabilities — 3 Total non-current liabilities 3 Total liabilities classified as held for sale $ 356 $ 355 _______________ (a) The assets and liabilities of Cartus Relocation Services are classified as current on the December 31, 2019 balance sheet because it is probable that the sale will occur and proceeds will be collected within one year. (b) Adjustment to record assets and liabilities held for sale at the lower of carrying value or fair value less any costs to sell based on the Purchase Agreement. |
Leases Lessee Disclosure (Table
Leases Lessee Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Supplemental Lease Balance Sheet Info | Supplemental balance sheet information related to the Company's leases was as follows: Lease Type Balance Sheet Classification December 31, 2019 Assets: Operating lease assets Operating lease assets, net $ 515 Finance lease assets (a) Property and equipment, net 41 Total lease assets, net $ 556 Liabilities: Current: Operating lease liabilities Current portion of operating lease liabilities $ 122 Finance lease liabilities Accrued expenses and other current liabilities 13 Non-current: Operating lease liabilities Long-term operating lease liabilities 467 Finance lease liabilities Other non-current liabilities 22 Total lease liabilities $ 624 Weighted Average Lease Term and Discount Rate Weighted average remaining lease term (years): Operating leases 6.1 Finance leases 3.1 Weighted average discount rate: Operating leases 5.1 % Finance leases 4.1 % _______________ (a) Finance lease assets are recorded net of accumulated amortization of $34 million . |
Lease Liability Maturity Table | As of December 31, 2019, maturities of lease liabilities by fiscal year were as follows: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2020 $ 144 $ 13 $ 157 2021 135 11 146 2022 110 8 118 2023 85 4 89 2024 64 2 66 Thereafter 153 — 153 Total lease payments 691 38 729 Less: Interest 102 3 105 Present value of lease liabilities $ 589 $ 35 $ 624 |
Lease, Cost | Supplemental income statement information related to the Company's leases is as follows: Year Ended Lease Costs December 31, 2019 Operating lease costs $ 158 Finance lease costs: Amortization of leased assets 13 Interest on lease liabilities 1 Other lease costs (a) 28 Impairment (b) 12 Less: Sublease income, gross 3 Net lease cost $ 209 _______________ (a) Primarily consists of variable lease costs. (b) Impairment charges relate to the exit and sublease of certain real estate operating leases. |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2019 Supplemental cash flow information: Operating cash flows from operating leases $ 153 Operating cash flows from finance leases 1 Financing cash flows from finance leases 14 Supplemental non-cash information: Lease assets obtained in exchange for lease obligations: Operating leases $ 153 Finance leases 18 |
Schedule of Future Minimum Rental Payments for Operating Leases | As previously disclosed in our 2018 Annual Report on Form 10-K and under historical lease accounting guidance: Future minimum lease payments for noncancelable operating leases as of December 31, 2018 were as follows: Year As of December 31, 2018 2019 $ 156 2020 136 2021 113 2022 90 2023 75 Thereafter 175 Total $ 745 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The Company's revenue is disaggregated by major revenue categories on our Consolidated Statements of Operations and further disaggregated by business segment as follows: Years Ended December 31, 2019 vs December 31, 2018 Realogy Realogy Realogy Realogy Corporate Total 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Gross commission income (a) $ — $ — $ 4,330 $ 4,533 $ — $ — $ — $ — $ — $ — $ 4,330 $ 4,533 Service revenue (b) — — 11 9 579 564 83 81 — — 673 654 Franchise fees (c) 668 688 — — — — — — (282) (295) 386 393 Other (d) 135 132 68 65 17 16 — — (11) (11) 209 202 Net revenues $ 803 $ 820 $ 4,409 $ 4,607 $ 596 $ 580 $ 83 $ 81 $ (293) $ (306) $ 5,598 $ 5,782 Years Ended December 31, 2018 vs December 31, 2017 (e) Realogy Realogy Realogy Realogy Corporate Total 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Gross commission income (a) $ — $ — $ 4,533 $ 4,576 $ — $ — $ — $ — $ — $ — $ 4,533 $ 4,576 Service revenue (b) — — 9 9 564 551 81 78 — — 654 638 Franchise fees (c) 688 695 — — — — — — (295) (299) 393 396 Other (d) 132 135 65 58 16 19 — — (11) (12) 202 200 Net revenues $ 820 $ 830 $ 4,607 $ 4,643 $ 580 $ 570 $ 81 $ 78 $ (306) $ (311) $ 5,782 $ 5,810 _______________ (a) Approximately 80% of the Company's total net revenues is related to gross commission income at Realogy Brokerage Group, which is recognized at a point in time at the closing of a homesale transaction. (b) Approximately 10% of the Company's total net revenues is related to service fees primarily consisting of title and escrow fees at Realogy Title Group, which are recognized at a point in time at the closing of a homesale transaction. (c) Approximately 7% of the Company's total net revenues is related to franchise fees at Realogy Franchise Group, primarily domestic royalties, which are recognized at a point in time when the underlying franchisee revenue is earned (upon close of the homesale transaction). (d) Less than 5% of the Company's total net revenues is related to other revenue, which comprised of brand marketing funds received at Realogy Franchise Group from franchisees, third-party listing fees and other miscellaneous revenues across all of the business segments. (e) Amounts for the year ended December 31, 2017 have not been adjusted under the modified retrospective method. |
Contract with Customer, Asset and Liability | The following table shows the change in the Company's contract liabilities related to revenue contracts by reportable segment for the period: Year Ended December 31, 2019 Beginning Balance at January 1, 2019 Additions during the period Recognized as Revenue during the period Ending Balance at Realogy Franchise Group (a) $ 78 $ 118 $ (127) $ 69 Realogy Brokerage Group 14 8 (9) 13 Realogy Leads Group — 13 (10) 3 Total $ 92 $ 139 $ (146) $ 85 _______________ (a) Revenues recognized include intercompany marketing fees paid by Realogy Brokerage Group. The majority of the Company's contracts are transactional in nature or have a duration of one-year or less. Accordingly, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Goodwill by reporting unit and changes in the carrying amount are as follows: Realogy Franchise Group Realogy Brokerage Group Realogy Realogy Total Company Balance at January 1, 2017 $ 2,292 $ 893 $ 145 $ 184 $ 3,514 Goodwill acquired (a) — 11 9 — 20 Balance at December 31, 2017 2,292 904 154 184 3,534 Goodwill acquired (b) — 2 — — 2 Balance at December 31, 2018 2,292 906 154 184 3,536 Goodwill acquired (c) — — 1 — 1 Impairment (d) — (237) — — (237) Balance at December 31, 2019 $ 2,292 $ 669 $ 155 $ 184 $ 3,300 Goodwill and accumulated impairment summary Gross goodwill $ 3,315 $ 1,064 $ 479 $ 321 $ 5,179 Accumulated impairments (e) (1,023) (395) (324) (137) (1,879) Balance at December 31, 2019 $ 2,292 $ 669 $ 155 $ 184 $ 3,300 _______________ (a) Goodwill acquired during the year ended December 31, 2017 relates to the acquisition of sixteen real estate brokerage operations and two title and settlement operations. (b) Goodwill acquired during the year ended December 31, 2018 relates to the acquisition of three real estate brokerage operations. (c) Goodwill acquired during the year ended December 31, 2019 relates to the acquisition of two title and settlement operations. (d) The Company recognized a goodwill impairment charge of $237 million during the third quarter of 2019 related to Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 20, "Selected Quarterly Financial Data", for additional information). (e) Includes impairment charges which reduced goodwill by $237 million, $1,153 million and $489 million during the third quarter of 2019, fourth quarter of 2008 and fourth quarter of 2007, respectively. |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Table Text Block] | Intangible assets are as follows: As of December 31, 2019 As of December 31, 2018 Gross Accumulated Net Gross Accumulated Net Amortizable—Franchise agreements (a) $ 2,019 $ 859 $ 1,160 $ 2,019 $ 792 $ 1,227 Indefinite life—Trademarks (b) $ 673 $ 673 $ 673 $ 673 Other Intangibles Amortizable—License agreements (c) $ 45 $ 12 $ 33 $ 45 $ 11 $ 34 Amortizable—Customer relationships (d) 71 57 14 71 55 16 Indefinite life—Title plant shares (e) 19 19 18 18 Amortizable—Other (f) 27 21 6 33 21 12 Total Other Intangibles $ 162 $ 90 $ 72 $ 167 $ 87 $ 80 _______________ (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 Title Group and Realogy Brokerage Group. These relationships are being amortized over a period of 2 to 12 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. |
Schedule of Finite-Lived Intangible Assets, Amortization Expense [Table Text Block] | Intangible asset amortization expense is as follows: For the Year Ended December 31, 2019 2018 2017 Franchise agreements $ 67 $ 67 $ 67 License agreements 1 1 1 Customer relationships 2 3 4 Other 6 5 9 Total $ 76 $ 76 $ 81 |
Franchising and Marketing Act_2
Franchising and Marketing Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Franchising and Marketing Activities [Abstract] | |
Schedule of the Number of Franchised and Company Owned Outlets in Operation [Table Text Block] | The number of franchised and company owned offices in operation are as follows: (Unaudited) As of December 31, 2019 2018 2017 Franchised (domestic and international): Century 21 ® 11,640 9,637 7,973 ERA ® 2,301 2,331 2,298 Coldwell Banker ® 2,323 2,380 2,330 Coldwell Banker Commercial ® 159 171 180 Sotheby’s International Realty ® 962 949 905 Better Homes and Gardens ® Real Estate 391 362 353 Total Franchised 17,776 15,830 14,039 Company owned: Coldwell Banker ® 634 672 707 Sotheby’s International Realty ® 37 41 41 Corcoran ® /Other 42 42 41 Total Company Owned 713 755 789 |
Schedule of the Changes in the Number of Franchised and Company Owned Outlets [Table Text Block] | The number of franchised and company owned offices (in the aggregate) changed as follows: (Unaudited) For the Year Ended December 31, 2019 2018 2017 Franchised (domestic and international): Beginning balance 15,830 14,039 13,314 Additions 2,399 2,149 1,137 Terminations (453) (358) (412) Ending balance 17,776 15,830 14,039 Company owned: Beginning balance 755 789 789 Additions 4 8 20 Closures (46) (42) (20) Ending balance 713 755 789 |
Property and Equipment, Net P_2
Property and Equipment, Net Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net consisted of: December 31, 2019 2018 Furniture, fixtures and equipment $ 162 $ 176 Capitalized software 334 293 Finance/capital lease assets 76 64 Building and leasehold improvements 292 275 Land 3 3 Gross property and equipment 867 811 Less: accumulated depreciation (559) (538) Property and equipment, net $ 308 $ 273 |
Accrued Expenses And Other Cu_2
Accrued Expenses And Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of: December 31, 2019 2018 Accrued payroll and related employee costs $ 103 $ 106 Accrued volume incentives 35 37 Accrued commissions 32 30 Restructuring accruals 11 14 Deferred income 43 50 Accrued interest 18 15 Current portion of finance/capital lease liabilities 13 12 Due to former parent 18 21 Other 77 59 Total accrued expenses and other current liabilities $ 350 $ 344 |
Short and Long-Term Debt (Table
Short and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Total Indebtedness | Total indebtedness is as follows: December 31, 2019 2018 Senior Secured Credit Facility: Revolving Credit Facility $ 190 $ 270 Term Loan B 1,045 1,053 Term Loan A Facility: Term Loan A 714 732 4.50% Senior Notes — 449 5.25% Senior Notes 548 547 4.875% Senior Notes 405 497 9.375% Senior Notes 543 — Total Short-Term & Long-Term Debt $ 3,445 $ 3,548 |
Schedule of Debt | As of December 31, 2019, the Company’s borrowing arrangements were as follows: Interest Expiration Principal Amount Unamortized Discount and Debt Issuance Costs Net Amount Senior Secured Credit Facility: Revolving Credit Facility (1) (2) February 2023 $ 190 $ * $ 190 Term Loan B (3) February 2025 1,058 13 1,045 Term Loan A Facility: Term Loan A (4) February 2023 717 3 714 Senior Notes 5.25% December 2021 550 2 548 Senior Notes 4.875% June 2023 407 2 405 Senior Notes 9.375% April 2027 550 7 543 Total $ 3,472 $ 27 $ 3,445 _______________ * The debt issuance costs related to our Revolving Credit Facility are classified as a deferred financing asset within other assets. (1) As of December 31, 2019, the $1,425 million Revolving Credit Facility had outstanding borrowings of $190 million, as well as $57 million of outstanding letters of credit. The Revolving Credit Facility expires in February 2023 but is classified on the balance sheet as current due to the revolving nature and terms and conditions of the facility. On February 21, 2020, the Company had $310 million in outstanding borrowings under the Revolving Credit Facility and $57 million of outstanding letters of credit. (2) Interest rates with respect to revolving loans under the Senior Secured Credit Facility at December 31, 2019 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 2.25% and the ABR margin was 1.25% for the three months ended December 31, 2019. (3) The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B 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%). (4) The Term Loan A provides for quarterly amortization payments, which commenced on June 30, 2018, totaling per annum 2.5%, 2.5%, 5.0%, 7.5% and 10.0% of the original principal amount of the Term Loan A, with the balance of the Term Loan A due at maturity on February 8, 2023. The interest rates with respect to the 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 2.25% and the ABR margin was 1.25% for the three months ended December 31, 2019. |
Schedule of Maturities of Long-term Debt | As of December 31, 2019, the combined aggregate amount of maturities for long-term borrowings for each of the next five years is as follows: Year Amount 2020 (a) $ 234 2021 612 2022 81 2023 981 2024 11 _______________ (a) The current portion of long term debt consists of four quarters of 2020 amortization payments totaling $33 million and $11 million for the Term Loan A and Term Loan B facilities, respectively, as well as $190 million of revolver borrowings under the Revolving Credit Facility which expires in February 2023, but is classified on the balance sheet as current due to the revolving nature and terms and conditions of the facility. |
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% |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Expected Benefit Payments | Estimated future benefit payments as of December 31, 2019 are as follows: Year Amount 2020 $ 9 2021 9 2022 9 2023 9 2024 9 2025 through 2029 45 |
Schedule of Allocation of Plan Assets | The following table presents the fair values of plan assets by category as of December 31, 2019: Asset Category Quoted Price in Active Market for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Cash and cash equivalents $ 1 $ — $ — $ 1 Equity securities — 51 — 51 Fixed income securities — 48 — 48 Total $ 1 $ 99 $ — $ 100 The following table presents the fair values of plan assets by category as of December 31, 2018: Asset Category Quoted Price in Active Market for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities — 43 — 43 Fixed income securities — 44 — 44 Total $ 3 $ 87 $ — $ 90 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of pre-tax income (loss) for domestic and foreign operations | The components of pretax income for domestic and foreign operations consisted of the following: Year Ended December 31, 2019 2018 2017 Domestic $ (140) $ 213 $ 362 Foreign — — — Pretax (loss) income $ (140) $ 213 $ 362 |
Schedule of income tax provision | The components of income tax expense (benefit) consisted of the following: Year Ended December 31, 2019 2018 2017 Current: Federal $ 3 $ (11) $ (8) State 7 5 4 Foreign 2 2 2 Total current 12 (4) (2) Deferred: Federal (25) 61 (73) State (9) 10 9 Foreign — — — Total deferred (34) 71 (64) Income tax (benefit) expense $ (22) $ 67 $ (66) |
Schedule of effective income tax rate | A reconciliation of the Company’s effective income tax rate at the U.S. federal statutory rate of 21% to the actual expense was as follows: Year Ended December 31, 2019 2018 2017 Federal statutory rate 21 % 21 % 35 % State and local income taxes, net of federal tax benefits 6 5 4 Impact of the 2017 Tax Act — — (50) Non-deductible equity compensation (4) 2 — Non-deductible executive compensation (1) 1 — Goodwill impairment (3) — — Meals & entertainment (2) — — Other permanent differences (1) 1 — Uncertain tax positions — (1) (9) Net change in valuation allowance — 2 1 Other — — 1 Effective tax rate 16 % 31 % (18) % |
Schedule of deferred income tax assets and liabilities | Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the deferred income tax assets and liabilities, as of December 31, are as follows: 2019 2018 Deferred income tax assets: Net operating loss carryforwards $ 173 $ 236 Tax credit carryforwards 29 24 Accrued liabilities and deferred income 77 92 Operating leases 169 — Minimum pension obligations 18 16 Provision for doubtful accounts 7 7 Liability for unrecognized tax benefits 1 1 Interest rate swaps 12 5 Total deferred tax assets 486 381 Less: valuation allowance (14) (14) Total deferred income tax assets after valuation allowance 472 367 Deferred income tax liabilities: Depreciation and amortization 704 747 Operating leases 146 — Prepaid expenses 8 8 Basis difference in investment in joint ventures 2 1 Other 2 — Total deferred tax liabilities 862 756 Net deferred income tax liabilities $ (390) $ (389) |
Schedule of the rollforward of unrecognized tax benefits | The rollforward of unrecognized tax benefits are summarized in the table below: Unrecognized tax benefits—January 1, 2017 $ 75 Gross decreases—tax positions in prior periods (54) Reduction due to lapse of statute of limitations (1) Unrecognized tax benefits—December 31, 2017 20 Reduction due to lapse of statute of limitations (1) Unrecognized tax benefits—December 31, 2018 19 Gross increases—tax positions in prior periods 1 Unrecognized tax benefits—December 31, 2019 $ 20 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The components of the restructuring charges for the years ended December 31, 2019, 2018 and 2017 were as follows: Years Ended December 31, 2019 2018 2017 Personnel-related costs (1) $ 24 $ 17 $ 7 Facility-related costs (2) 17 20 4 Internal use software impairment (3) — 10 — Other restructuring costs (4) 1 — 1 Total restructuring charges (5) $ 42 $ 47 $ 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. (3) Internal use software impairment relates to development costs capitalized for a project that was determined to not meet the Company's strategic goals when analyzed by the Company's new leadership team. (4) Other restructuring costs consist of costs related to professional fees, consulting fees and other costs associated with restructuring activities which are primarily included in the Corporate and Other business segment. (5) The year ended December 31, 2019 includes $38 million of expense related to the Facility and Operational Efficiencies Program and $4 million of expense related to prior restructuring programs. The years ended December 31, 2018 and December 31, 2017 relate to prior restructuring programs. |
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 (1) Other restructuring costs Total Balance at December 31, 2018 $ — $ — $ — $ — Restructuring charges 21 16 1 38 Costs paid or otherwise settled (15) (11) (1) (27) Balance at December 31, 2019 $ 6 $ 5 $ — $ 11 _______________ (1) In addition, the Company incurred an additional $12 million related to lease asset impairments in connection with the Facility and Operational Efficiencies Program during the year ended December 31, 2019. |
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 Amount incurred Total amount remaining to be incurred Personnel-related costs $ 24 $ 21 $ 3 Facility-related costs (1) 46 16 30 Other restructuring costs 1 1 — Total $ 71 $ 38 $ 33 _______________ (1) Facility-related costs includes lease asset impairments expected 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 $ 3 $ 2 $ 1 Realogy Brokerage Group 54 25 29 Realogy Title Group 2 2 — Realogy Leads Group 2 2 — Corporate and Other 10 7 3 Total $ 71 $ 38 $ 33 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation, Activity | A summary of activity for the year ended December 31, 2019 is presented below (number of shares in millions): Restricted Stock Units Weighted Average Grant Date Fair Value Performance Share Units (a) Weighted Average Grant Date Fair Value Options (e) Weighted Average Exercise Price Outstanding at January 1, 2019 2.2 $ 27.37 1.7 $ 28.10 3.7 $ 30.98 Granted 2.5 13.41 0.9 11.06 0.8 13.44 Distributed/Exercised (1.0) (b) 28.17 (0.2) (c) 32.66 — — Forfeited/Expired (0.3) 18.81 (0.1) 19.35 (0.4) 28.74 Outstanding at December 31, 2019 3.4 $ 17.89 2.3 $ 19.16 4.1 (d) $ 27.50 _______________ (a) The PSU amounts in the table are shown at the target amount of the award. (b) The total fair value of RSUs which were distributed during the year ended December 31, 2019 was $27 million. (c) The total fair value of PSUs which were distributed during the year ended December 31, 2019 was $8 million. (d) Options outstanding at December 31, 2019 have an intrinsic value of zero and have a weighted average remaining contractual life of 5.7 years. (e) As of December 31, 2019, 2.5 million of the 4.1 million outstanding stock options were exercisable with a weighted average exercise price of $32.19, an intrinsic value of zero and a weighted average remaining contractual life of 3.9 years. |
Schedule of Market Performance Unit Award Valuation Assumptions | The fair value of the PSU RTSR awards was estimated on the date of grant using the Monte Carlo Simulation method utilizing the following assumptions: 2019 RTSR PSU 2018 RTSR PSU 2017 RTSR PSU Weighted average grant date fair value $ 7.82 $ 25.45 $ 27.98 Weighted average expected volatility (a) 34.8 % 29.8 % 29.0 % Weighted average volatility of S&P 400 13.5 % Weighted average volatility of XHB 17.9 % 18.4 % Weighted average correlation coefficient 0.42 0.44 0.53 Weighted average risk-free interest rate 2.5 % 2.6 % 1.5 % Weighted average dividend yield — — — _______________ (a) Expected volatility is based on historical volatilities of the Company and select comparable companies. |
Summary of Stock Options Valuation Assumptions | The fair value of the options was estimated on the date of grant using the Black-Scholes option-pricing model utilizing the following assumptions: 2019 Options 2018 Options 2017 Options Weighted average grant date fair value $ 3.40 $ 7.12 $ 8.61 Weighted average expected volatility (a) 31.4 % 28.5 % 30.7 % Weighted average expected term (years) (b) 6.25 6.25 6.25 Weighted average risk-free interest rate (c) 2.5 % 2.7 % 2.0 % Weighted average dividend yield 2.7 % 1.4 % 1.2 % _______________ (a) Expected volatility was based on historical volatilities of the Company and select comparable companies. (b) The expected term of the options granted represents the period of time that options are expected to be outstanding and is based on the simplified method. (c) The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of the grant, which corresponds to the expected term of the options. |
Commitments And Contingencies_2
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments for Purchase Commitments and Licensing Fees | Future minimum payments for these purchase commitments and minimum licensing fees as of December 31, 2019 are as follows: Year Amount 2020 $ 44 2021 24 2022 11 2023 9 2024 8 Thereafter 217 Total $ 313 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings (loss) per share: Year Ended December 31, (in millions, except per share data) 2019 2018 2017 Numerator: Numerator for earnings per share—continuing operations Net income (loss) from continuing operations $ (118) $ 146 $ 428 Less: Net income attributable to noncontrolling interests (3) (3) (3) Net (loss) income from continuing operations attributable to Realogy Holdings $ (121) $ 143 $ 425 Numerator for earnings per share—discontinued operations Net (loss) income from discontinued operations $ (67) $ (6) $ 6 Net (loss) income attributable to Realogy Holdings shareholders $ (188) $ 137 $ 431 Denominator: Weighted average common shares outstanding (denominator for basic (loss) earnings per share calculation) 114.2 124.0 136.7 Dilutive effect of stock-based compensation (a) (b) — 1.3 1.7 Weighted average common shares outstanding (denominator for diluted (loss) earnings per share calculation) 114.2 125.3 138.4 Basic (loss) earnings per share attributable to Realogy Holdings shareholders: Basic (loss) earnings per share from continuing operations $ (1.06) $ 1.15 $ 3.11 Basic (loss) earnings per share from discontinued operations (0.59) (0.05) 0.04 Basic (loss) earnings per share $ (1.65) $ 1.10 $ 3.15 Diluted (loss) earnings per share attributable to Realogy Holdings shareholders: Diluted (loss) earnings per share from continuing operations $ (1.06) $ 1.14 $ 3.07 Diluted (loss) earnings per share from discontinued operations (0.59) (0.05) 0.04 Diluted (loss) earnings per share $ (1.65) $ 1.09 $ 3.11 _______________ (a) The Company was in a net loss position for the year ended December 31, 2019 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 (see Note 14, "Stock-Based Compensation", for outstanding equity awards as of December 31, 2019). (b) The years ended December 31, 2018 and 2017, respectively, exclude 6.9 million and 5.3 million shares of common stock issuable for incentive equity awards which includes performance share units based on the achievement of target amounts, that are anti-dilutive to the diluted earnings per share computation. |
Risk Management and Fair Valu_2
Risk Management and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risk Management and Fair Value of Financial Instruments [Abstract] | |
Schedule of Derivative Instruments | Notional Value (in millions) Commencement Date Expiration Date $600 August 2015 August 2020 $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 December 31, 2019 December 31, 2018 Interest rate swap contracts Other non-current assets $ — $ 6 Other current and non-current liabilities 47 16 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of derivative instruments on earnings was as follows: Derivative Instruments Not Location of (Gain) or Loss Recognized for Derivative Instruments (Gain) or Loss Recognized on Derivatives Year Ended December 31, 2019 2018 2017 Interest rate swap contracts Interest expense $ 39 $ 4 $ (4) |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes fair value measurements by level at December 31, 2019 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) $ 2 $ — $ — $ 2 Interest rate swaps (included in other current and non-current liabilities) — 47 — 47 Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) — — 4 4 The following table summarizes fair value measurements by level at December 31, 2018 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) $ 2 $ — $ — $ 2 Interest rate swaps (included in other non-current assets) — 6 — 6 Interest rate swaps (included in other non-current liabilities) — 16 — 16 Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) — — 10 10 |
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, 2018 $ 10 Additions: contingent consideration related to acquisitions completed during the period — Reductions: payments of contingent consideration (4) Changes in fair value (reflected in general and administrative expenses) (2) Fair value of contingent consideration at December 31, 2019 $ 4 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | 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: December 31, 2019 December 31, 2018 Debt Principal Amount Estimated Principal Amount Estimated Senior Secured Credit Facility: Revolving Credit Facility $ 190 $ 190 $ 270 $ 270 Term Loan B 1,058 1,048 1,069 1,010 Term Loan A Facility: Term Loan A 717 705 736 707 4.50% Senior Notes — — 450 447 5.25% Senior Notes 550 557 550 524 4.875% Senior Notes 407 401 500 434 9.375% Senior Notes 550 572 — — _______________ (a) The fair value of the Company's indebtedness is categorized as Level II. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenues | Revenues (a) (b) Year Ended December 31, 2019 2018 2017 Realogy Franchise Group $ 803 $ 820 $ 830 Realogy Brokerage Group 4,409 4,607 4,643 Realogy Title Group 596 580 570 Realogy Leads Group 83 81 78 Corporate and Other (c) (293) (306) (311) Total Company $ 5,598 $ 5,782 $ 5,810 _______________ (a) Transactions between segments are eliminated in consolidation. Revenues for Realogy Franchise Group include intercompany royalties and marketing fees paid by Realogy Brokerage Group of $293 million, $306 million and $311 million for the years ended December 31, 2019, 2018 and 2017, respectively. Such amounts are eliminated through the Corporate and Other line. (b) Revenues for Realo gy Leads Group include intercompany referral commissions paid by Realogy Brokerage Group of $18 million for each of the years ended December 31, 2019, 2018 and 2017. Such amounts are recorded as contra-revenues by Realogy Brokerage Group. There are no other material intersegment transactions. (c) Includes the elimination of transactions between segments. |
Reconciliation of Operating EBITDA by Business segment to Net Income (Loss) | Set forth in the tables below is a reconciliation of Net (loss) income to Operating EBITDA and Operating EBITDA presented by reportable segment for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Net (loss) income attributable to Realogy Holdings and Realogy Group $ (188) $ 137 $ 431 Less: Net (loss) income from discontinued operations (67) (6) 6 Add: Income tax (benefit) expense from continuing operations (a) (22) 67 (66) (Loss) income from continuing operations before income taxes (143) 210 359 Add: Depreciation and amortization (b) 169 166 169 Interest expense, net 249 189 157 Restructuring costs, net (c) 42 47 12 Impairments (d) 249 — — Former parent legacy cost (benefit) (e) 1 4 (10) (Gain) loss on the early extinguishment of debt (e) (5) 7 5 Operating EBITDA $ 562 $ 623 $ 692 Operating EBITDA Year Ended December 31, 2019 2018 2017 Realogy Franchise Group $ 535 $ 564 $ 560 Realogy Brokerage Group (f) 4 44 135 Realogy Title Group 68 49 59 Realogy Leads Group 53 51 45 Corporate and Other (e)(g) (98) (85) (107) Total $ 562 $ 623 $ 692 ______________ (a) Income tax benefit for the year ended December 31, 2017 reflects the impact of the 2017 Tax Act. (b) Depreciation and amortization for the years ended December 31, 2018 and 2017 includes $2 million and $3 million, respectively, of amortization expense related to Guaranteed Rate Affinity's purchase accounting included in the "Equity in (earnings) losses of unconsolidated entities" line on the Consolidated Statement of Operations. (c) The year ended December 31, 2019 includes restructuring charges of $2 million at Realogy Franchise Group, $25 million at Realogy Brokerage Group, $3 million at Realogy Title Group, $2 million at Realogy Leads Group and $10 million at Corporate and Other. The year ended December 31, 2018 includes restructuring charges of $3 million at Realogy Franchise Group, $37 million at Realogy Brokerage Group, $4 million at Realogy Title Group and $3 million at Corporate and Other. The year ended December 31, 2017 includes restructuring charges of $1 million at Realogy Franchise Group, $9 million at Realogy Brokerage Group, $1 million at Realogy Title Group and $1 million at Corporate and Other. (d) Impairments for the year ended December 31, 2019 includes a goodwill impairment charge of $237 million at Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 2, "Summary of Significant Accounting Policies", for additional information). In addition, other impairment charges, primarily related to lease asset impairments, of $12 million were incurred for the year ended December 31, 2019. (e) Former parent legacy items and (Gain) loss on the early extinguishment of debt are recorded in Corporate and Other. (f) Includes $22 million of equity earnings from PHH Home Loans for the year ended December 31, 2017. (g) Includes the elimination of transactions between segments. |
Reconciliation of Depreciation and Amortization from Segments to Consolidated | Depreciation and Amortization Year Ended December 31, 2019 2018 2017 Realogy Franchise Group $ 77 $ 77 $ 79 Realogy Brokerage Group 54 51 50 Realogy Title Group 13 13 16 Realogy Leads Group 1 2 1 Corporate and Other 24 21 20 Total Company $ 169 $ 164 $ 166 |
Segment Assets | Segment Assets As of December 31, 2019 2018 Realogy Franchise Group $ 4,317 $ 4,388 Realogy Brokerage Group 1,448 1,228 Realogy Title Group 576 492 Realogy Leads Group 192 193 Corporate and Other 260 190 Assets - held for sale 750 799 Total Company $ 7,543 $ 7,290 |
Reconciliation of Capital Expenditures from Segments to Consolidated | Capital Expenditures Year Ended December 31, 2019 2018 2017 Realogy Franchise Group $ 19 $ 10 $ 9 Realogy Brokerage Group 56 44 44 Realogy Title Group 10 11 13 Realogy Leads Group 2 — 2 Corporate and Other 21 27 22 Total Company $ 108 $ 92 $ 90 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The impact of the revision to the Condensed Consolidated Statements of Operations as filed in the Company's Form 10-Q for the three and nine months ended September 30, 2019, as well as for the three and nine months ended September 30, 2019 as a result of the revision are as follows: Three Months Ended September 30, 2019 As Previously Reported Adjustment Revised Revised and adjusted for discontinued operations Expenses Impairments $ 183 $ 57 $ 240 $ 240 Total expenses 1,713 57 1,770 1,700 Loss from continuing operations before income taxes, equity in earnings and noncontrolling interests (84) (57) (141) (150) Income tax benefit from continuing operations (8) (14) (22) (23) Net loss (69) (43) (112) (112) Net loss attributable to Realogy Holdings and Realogy Group $ (70) $ (43) $ (113) $ (113) Loss per share attributable to Realogy Holdings shareholders: Basic loss per share $ (0.61) $ (0.38) $ (0.99) $ (0.99) Diluted loss per share $ (0.61) $ (0.38) $ (0.99) $ (0.99) Nine Months Ended September 30, 2019 As Previously Reported Adjustment Revised Revised and adjusted for discontinued operations Expenses Impairments $ 186 $ 57 $ 243 $ 243 Total expenses 4,600 57 4,657 4,441 Loss from continuing operations before income taxes, equity in earnings and noncontrolling interests (122) (57) (179) (173) Income tax benefit from continuing operations (9) (14) (23) (22) Net loss (98) (43) (141) (141) Net loss attributable to Realogy Holdings and Realogy Group $ (100) $ (43) $ (143) $ (143) Loss per share attributable to Realogy Holdings shareholders: Basic loss per share $ (0.88) $ (0.37) $ (1.25) $ (1.25) Diluted loss per share $ (0.88) $ (0.37) $ (1.25) $ (1.25) The impact of the change to the Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2019 as a result of the revision is as follows: Three Months Ended September 30, 2019 As Previously Reported Adjustment Revised Revised and adjusted for discontinued operations Net loss $ (69) $ (43) $ (112) $ (112) Comprehensive loss (70) (43) (113) (113) Comprehensive loss attributable to Realogy Holdings and Realogy Group $ (71) $ (43) $ (114) $ (114) Nine Months Ended September 30, 2019 As Previously Reported Adjustment Revised Revised and adjusted for discontinued operations Net loss $ (98) $ (43) $ (141) $ (141) Comprehensive loss (98) (43) (141) (141) Comprehensive loss attributable to Realogy Holdings and Realogy Group $ (100) $ (43) $ (143) $ (143) The impact of the change to the Condensed Consolidated Balance Sheets as of September 30, 2019 as a result of the revision is as follows: As of September 30, 2019 As Previously Reported Adjustment Revised Revised and adjusted for discontinued operations ASSETS Goodwill $ 3,532 $ (57) $ 3,475 $ 3,300 Total assets 7,717 (57) 7,660 7,660 LIABILITIES AND EQUITY Deferred income taxes 374 (14) 360 360 Total liabilities 5,534 (14) 5,520 5,520 Accumulated deficit (2,607) (43) (2,650) (2,650) Total stockholders' equity 2,179 (43) 2,136 2,136 Total equity 2,183 (43) 2,140 2,140 Total liabilities and equity $ 7,717 $ (57) $ 7,660 $ 7,660 The impact of the change to the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 as a result of the revision is as follows: Nine Months Ended September 30, 2019 As Previously Reported Adjustment Revised Revised and adjusted for discontinued operations Operating Activities Net loss from continuing operations $ (98) $ (43) $ (141) $ (136) Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities: Deferred income taxes (16) (14) (30) (29) Impairments 186 57 243 243 Net cash provided by operating activities $ 230 $ — $ 230 $ 230 |
Schedule of Unaudited Quarterly Financial Data | Provided below is selected unaudited quarterly financial data for 2019 and 2018. 2019 First (d) Second (d) Third (d) Fourth Net revenues Realogy Franchise Group $ 163 $ 234 $ 216 $ 190 Realogy Brokerage Group 816 1,331 1,222 1,040 Realogy Title Group 114 160 170 152 Realogy Leads Group 16 26 24 17 Corporate and Other (a) (55) (87) (82) (69) Total Company $ 1,054 $ 1,664 $ 1,550 $ 1,330 (Loss) income from continuing operations before income taxes, equity in earnings and noncontrolling interests (b) Realogy Franchise Group $ 71 $ 142 $ 134 $ 108 Realogy Brokerage Group (80) 25 (231) (38) Realogy Title Group (13) 22 21 7 Realogy Leads Group 8 16 16 11 Corporate and Other (104) (110) (90) (73) Total Company $ (118) $ 95 $ (150) $ 15 Net (loss) income from continuing operations attributable to Realogy Holdings shareholders $ (85) $ 68 $ (121) $ 17 Net (loss) income from discontinued operations attributable to Realogy Holdings shareholders (14) 1 8 (62) Net (loss) income attributable to Realogy Holdings and Realogy Group $ (99) $ 69 $ (113) $ (45) (Loss) earnings per share attributable to Realogy Holdings (c) : Basic (loss) earnings per share from continuing operations $ (0.75) $ 0.59 $ (1.06) $ 0.15 Basic (loss) earnings per share from discontinued operations (0.12) 0.01 0.07 (0.54) Basic (loss) earnings per share (0.87) 0.60 (0.99) (0.39) Diluted (loss) earnings per share from continuing operations (0.75) 0.59 (1.06) 0.15 Diluted (loss) earnings per share from discontinued operations (0.12) 0.01 0.07 (0.54) Diluted (loss) earnings per share $ (0.87) $ 0.60 $ (0.99) $ (0.39) _______________ (a) Represents the elimination of transactions primarily between Realogy Franchise Group and Realogy Brokerage Group. (b) The quarterly results include the following: • restructuring charges of $9 million, $9 million, $11 million and $13 million in the first, second, third and fourth quarters, respectively; • a goodwill impairment charge of $237 million in the third quarter which reduced the net carrying value of Realogy Brokerage Group by $180 million after accounting for the related income tax benefit of $57 million and $1 million, $2 million, $3 million and $6 million of other impairment charges primarily related to lease asset impairments incurred in the first, second, third and fourth quarters, respectively; • former parent legacy net cost of $1 million in the third quarter; and • a loss on the early extinguishment of debt of $5 million in the first quarter and a gain on the early extinguishment of debt of $10 million in the third quarter. (c) Basic and diluted EPS amounts in each quarter are computed using the weighted-average number of shares outstanding during that quarter, while basic and diluted EPS for the full year is computed using the weighted-average number of shares outstanding during the year. Therefore, the sum of the four quarters’ basic or diluted EPS may not equal the full year basic or diluted EPS (see Note 17 "Earnings (Loss) Per Share" for further information). (d) As a result of the pending sale of Cartus Relocation Services, the Company met held for sale requirements under ASC 360 and discontinued operations under ASC 205 in the fourth quarter of 2019. Therefore, amounts presented in the Company's Form 10-Qs for the periods prior to the fourth quarter of 2019 did not reflect discontinued operations, but have been adjusted to reflect discontinued operations in the tables above. 2018 First (d) Second (d) Third (d) Fourth (d) Net revenues Realogy Franchise Group $ 176 $ 237 $ 221 $ 186 Realogy Brokerage Group 917 1,408 1,268 1,014 Realogy Title Group 120 162 162 136 Realogy Leads Group 16 25 23 17 Corporate and Other (a) (63) (92) (83) (68) Total Company $ 1,166 $ 1,740 $ 1,591 $ 1,285 (Loss) income from continuing operations before income taxes, equity in earnings and noncontrolling interests (b) Realogy Franchise Group $ 85 $ 152 $ 141 $ 107 Realogy Brokerage Group (76) 45 22 (37) Realogy Title Group (8) 26 18 1 Realogy Leads Group 7 17 16 9 Corporate and Other (66) (73) (67) (102) Total Company $ (58) $ 167 $ 130 $ (22) Net (loss) income from continuing operations attributable to Realogy Holdings shareholders $ (49) $ 118 $ 93 $ (19) Net (loss) income from discontinued operations attributable to Realogy Holdings shareholders (18) 5 10 (3) Net (loss) income attributable to Realogy Holdings and Realogy Group $ (67) $ 123 $ 103 $ (22) (Loss) earnings per share attributable to Realogy Holdings (c): Basic (loss) earnings per share from continuing operations $ (0.38) $ 0.93 $ 0.76 $ (0.16) Basic (loss) earnings per share from discontinued operations (0.13) 0.04 0.08 (0.03) Basic (loss) earnings per share (0.51) 0.97 0.84 (0.19) Diluted (loss) earnings per share from continuing operations (0.38) 0.92 0.75 (0.16) Diluted (loss) earnings per share from discontinued operations (0.13) 0.04 0.08 (0.03) Diluted (loss) earnings per share $ (0.51) $ 0.96 $ 0.83 $ (0.19) _______________ (a) Represents the elimination of transactions primarily between Realogy Franchise Group and Realogy Brokerage Group. (b) The quarterly results include the following : • restructuring charges of $22 million, $5 million, $9 million and $11 million in the first, second, third and fourth quarters, respectively; • former parent legacy net cost of $4 million in the fourth quarter; and • a loss on the early extinguishment of debt of $7 million in the first quarter. (c) Basic and diluted EPS amounts in each quarter are computed using the weighted-average number of shares outstanding during that quarter, while basic and diluted EPS for the full year is computed using the weighted-average number of shares outstanding during the year. Therefore, the sum of the four quarters’ basic or diluted EPS may not equal the full year basic or diluted EPS. (d) As a result of the pending sale of Cartus Relocation Services, the Company met held for sale requirements under ASC 360 and discontinued operations under ASC 205 in the fourth quarter of 2019. Therefore, amounts presented in the Company's Form 10-Qs for the periods prior to the fourth quarter of 2019 did not reflect discontinued operations, but have been adjusted to reflect discontinued operations in the tables above. |
Business Description (Details)
Business Description (Details) | Nov. 07, 2019USD ($) | Dec. 31, 2019employees | Dec. 31, 2019Countries | Dec. 31, 2019franchisedandcompanyownedoffices | Dec. 31, 2019Brokerage_Offices | Dec. 31, 2018franchisedandcompanyownedoffices | Dec. 31, 2017franchisedandcompanyownedoffices | Dec. 31, 2016franchisedandcompanyownedoffices |
Expected value to be received at closing from the planned sale of employee relocation business | $ | $ 400 | |||||||
Expected cash proceeds at closing from the planned sale of employee relocation business | $ | 375 | |||||||
Expected deferred payment at closing from the planned sale of employee relocation business | $ | $ 25 | |||||||
Number of Countries in which Entity Operates | Countries | 114 | |||||||
Realogy Brokerage Group | ||||||||
Number of Independent Sales Associates | employees | 52,200 | |||||||
Number of offices | 713 | 710 | 755 | 789 | 789 | |||
Worldwide | Realogy Franchise and Brokerage Groups | ||||||||
Number of Independent Sales Associates | employees | 302,400 | |||||||
Number of offices | franchisedandcompanyownedoffices | 18,500 | |||||||
United States | Realogy Franchise and Brokerage Groups | ||||||||
Number of Independent Sales Associates | employees | 189,900 | |||||||
Number of offices | Brokerage_Offices | 5,900 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Dec. 31, 2016 | |||
Minimum ownership percentage for consolidation | 5000.00% | ||||||||
Advertising Expense | $ 196,000,000 | $ 207,000,000 | $ 211,000,000 | ||||||
Goodwill | 3,300,000,000 | 3,536,000,000 | 3,534,000,000 | $ 3,300,000,000 | $ 3,514,000,000 | ||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 692,000,000 | ||||||||
Goodwill, Impairment Loss, net of taxes | 180,000,000 | ||||||||
Impairment of Goodwill | $ 1,153,000,000 | $ 489,000,000 | 237,000,000 | [1] | |||||
Goodwill, Impairment Loss, Tax | $ 57,000,000 | ||||||||
Percentage by which the estimated fair value of each reporting unit is lowered during goodwill evaluation | 1000.00% | ||||||||
Realogy Brokerage Group | |||||||||
Goodwill | $ 669,000,000 | $ 906,000,000 | $ 904,000,000 | $ 893,000,000 | |||||
Goodwill, Impairment Loss, net of taxes | 180 | ||||||||
Impairment of Goodwill | [1] | $ 237,000,000 | |||||||
Maximum | |||||||||
Remaining maturity of highly-liquid investments | 3 months | ||||||||
[1] | The Company recognized a goodwill impairment charge of $237 million during the third quarter of 2019 related to Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 20, "Selected Quarterly Financial Data", for additional information). |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Proceeds from investments in unconsolidated entities | $ 0 | $ 19,000,000 | $ 11,000,000 |
Equity Method Investments | 69,000,000 | 51,000,000 | |
Income (Loss) from Equity Method Investments | (18,000,000) | 4,000,000 | (18,000,000) |
Proceeds from Equity Method Investment, Distribution | 3,000,000 | 3,000,000 | 63 |
Payments to Acquire Equity Method Investments | $ 12,000,000 | 15,000,000 | 55,000,000 |
Amortization of Intangible Assets related to GRA Acquisition | |||
Schedule of Equity Method Investments [Line Items] | |||
Income (Loss) from Equity Method Investments | 2,000,000 | 3,000,000 | |
Realogy Brokerage Group | Gain from sale of PHHHL assets by Guaranteed Rate Affinity | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 35 | ||
Income (Loss) from Equity Method Investments | (6) | ||
Realogy Brokerage Group | Exit Costs related to PHHHL | |||
Schedule of Equity Method Investments [Line Items] | |||
Income (Loss) from Equity Method Investments | (7) | ||
Realogy Title Group | |||
Schedule of Equity Method Investments [Line Items] | |||
Income (Loss) from Equity Method Investments | (4) | ||
Realogy Title Group | Amortization of Intangible Assets related to GRA Acquisition | |||
Schedule of Equity Method Investments [Line Items] | |||
Income (Loss) from Equity Method Investments | (3) | ||
PHH Home Loans | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 4990.00% | ||
Proceeds from investments in unconsolidated entities | 19 | ||
Equity Method Investments | 0 | ||
PHH Home Loans | Realogy Brokerage Group | |||
Schedule of Equity Method Investments [Line Items] | |||
Income (Loss) from Equity Method Investments | 22,000,000 | ||
Guaranteed Rate Affinity | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Unowned Percentage | 5010.00% | ||
Equity Method Investment, Ownership Percentage | 4990.00% | ||
Equity Method Investments | $ 60,000,000 | 43,000,000 | |
Payments to Acquire Equity Method Investments | $ 2,000,000 | $ 4,000,000 | $ 55,000,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 30 years | |
Leasehold Improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Furniture and Fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Furniture and Fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized Computer Software, Net | $ 97 | $ 93 |
Software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 1 year | |
Software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies New Accounting Pronouncements (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Item Effected [Line Items] | |||||||||
Other current assets | $ 147,000,000 | $ 127,000,000 | $ 140,000,000 | ||||||
Total current assets | 750,000,000 | 337,000,000 | 338,000,000 | ||||||
Total current assets | 1,211,000,000 | 754,000,000 | 768,000,000 | ||||||
Operating lease assets, net | 515,000,000 | 525,000,000 | 0 | ||||||
Other non-current assets | 304,000,000 | 272,000,000 | 272,000,000 | ||||||
Non-current assets - held for sale | 0 | 502,000,000 | 461,000,000 | ||||||
Total assets | 7,543,000,000 | $ 7,660,000,000 | 7,842,000,000 | [1] | 7,290,000,000 | [1] | |||
Current portion of operating lease liabilities | 122,000,000 | 126,000,000 | 0 | ||||||
Accrued expenses and other current liabilities | 350,000,000 | 332,000,000 | 344,000,000 | ||||||
Current liabilities - held for sale | 356,000,000 | 352,000,000 | 352,000,000 | ||||||
Total current liabilities | 1,146,000,000 | 1,641,000,000 | 1,527,000,000 | ||||||
Long-term operating lease liabilities | 467,000,000 | 458,000,000 | 0 | ||||||
Other non-current liabilities | 233,000,000 | 196,000,000 | 256,000,000 | ||||||
Non-current liabilities - held for sale | 0 | 43,000,000 | 3,000,000 | ||||||
Total liabilities | 5,447,000,000 | 5,520,000,000 | 5,527,000,000 | 4,975,000,000 | |||||
Total equity | 2,096,000,000 | 2,140,000,000 | 2,315,000,000 | 2,315,000,000 | $ 2,622,000,000 | $ 2,469,000,000 | |||
Total liabilities and equity | 7,543,000,000 | $ 7,660,000,000 | 7,842,000,000 | 7,290,000,000 | |||||
Realogy Brokerage Group | |||||||||
Item Effected [Line Items] | |||||||||
Total assets | 1,448,000,000 | 1,228,000,000 | |||||||
Corporate and Other | |||||||||
Item Effected [Line Items] | |||||||||
Total assets | 260,000,000 | 190,000,000 | |||||||
Realogy Title Group | |||||||||
Item Effected [Line Items] | |||||||||
Total assets | $ 576,000,000 | $ 492,000,000 | |||||||
Other Current Assets | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | (13,000,000) | ||||||||
Current assets - held for sale | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | (1,000,000) | ||||||||
Current Assets | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | (14,000,000) | ||||||||
Operating Lease Assets [Member] | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 525,000,000 | ||||||||
Other non-current assets | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | ||||||||
Non-current assets - held for sale | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 41,000,000 | ||||||||
Assets, Total | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | [1] | 552,000,000 | |||||||
Assets, Total | Adoption of ASC 842 Lease Transition Entries | Realogy Brokerage Group | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 414 | ||||||||
Assets, Total | Adoption of ASC 842 Lease Transition Entries | Corporate and Other | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 52 | ||||||||
Assets, Total | Adoption of ASC 842 Lease Transition Entries | Realogy Title Group | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 46 | ||||||||
Assets, Total | Adoption of ASC 842 Lease Transition Entries | Cartus Relocation Services [Member] | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 40 | ||||||||
Current Operating Lease Liabilities [Member] | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 126,000,000 | ||||||||
Accrued Liabilities [Member] | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | (12,000,000) | ||||||||
Current liabilities - held for sale | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | ||||||||
Current Liabilities | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 114,000,000 | ||||||||
Long-term Operating Lease Liabilities [Member] | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 458,000,000 | ||||||||
Other Noncurrent Liabilities | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | (60,000,000) | ||||||||
Non-current liabilities - held for sale | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 40,000,000 | ||||||||
Liabilities, Total | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 552,000,000 | ||||||||
Equity | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | ||||||||
Liabilities and Equity, Total | Adoption of ASC 842 Lease Transition Entries | |||||||||
Item Effected [Line Items] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 552,000,000 | ||||||||
[1] | The $552 million adjustment to Total assets due to the adoption of the new leasing standard consists of $414 million at Realogy Brokerage Group, $52 million at Corporate and Other, $46 million at Realogy Title Group and $40 million of assets held for sale related to the pending sale of Cartus' Relocation Services business. |
Discontinued Operations and D_3
Discontinued Operations and Disposal Groups (Details) £ in Millions | Nov. 07, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jan. 01, 2019USD ($) | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Expected cash proceeds at closing from the planned sale of employee relocation business | $ 375 | |||||||||
Expected deferred payment at closing from the planned sale of employee relocation business | $ 25 | |||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||
Net revenues | $ 272,000,000 | $ 297,000,000 | $ 304,000,000 | |||||||
Total expenses | 281,000,000 | 305,000,000 | 297,000,000 | |||||||
(Loss) income from discontinued operations | (9,000,000) | (8,000,000) | 7,000,000 | |||||||
Estimated loss on the sale of discontinued operations (a) | [1] | (22,000,000) | 0 | 0 | ||||||
Discontinued Operation, Tax Effect of Discontinued Operation | [2] | 36,000,000 | (2,000,000) | 1,000,000 | ||||||
Net (loss) income from discontinued operations | (67,000,000) | (6,000,000) | $ 6,000,000 | |||||||
ASSETS | ||||||||||
Cash and cash equivalents | 22,000,000 | $ 28,000,000 | [3] | |||||||
Restricted cash | 11,000,000 | 3,000,000 | [3] | |||||||
Trade receivables | 61,000,000 | 46,000,000 | [3] | |||||||
Relocation receivables | 231,000,000 | 203,000,000 | [3] | |||||||
Other current assets | 13,000,000 | 12,000,000 | [3] | |||||||
Total current assets | 338,000,000 | 750,000,000 | $ 337,000,000 | |||||||
Property and equipment, net | 31,000,000 | 36,000,000 | [3] | |||||||
Operating lease assets, net | 0 | 36,000,000 | [3] | |||||||
Goodwill | 176,000,000 | 176,000,000 | [3] | |||||||
Trademarks | 76,000,000 | 76,000,000 | [3] | |||||||
Other intangibles, net | 174,000,000 | 156,000,000 | [3] | |||||||
Other non-current assets | 4,000,000 | 0 | [3] | |||||||
Non-current assets - held for sale | 461,000,000 | 0 | 502,000,000 | |||||||
Allowance for reduction of assets held for sale (b) | [3],[4] | (22,000,000) | ||||||||
Total assets classified as held for sale | 799,000,000 | 750,000,000 | [3] | |||||||
Liabilities [Abstract] | ||||||||||
Accounts payable | 64,000,000 | 53,000,000 | [3] | |||||||
Securitization obligations | 231,000,000 | 206,000,000 | [3] | |||||||
Current portion of operating lease liabilities | 0 | 6,000,000 | [3] | |||||||
Accrued expenses and other current liabilities | 57,000,000 | 62,000,000 | [3] | |||||||
Current liabilities - held for sale | 352,000,000 | 356,000,000 | 352,000,000 | |||||||
Long-term operating lease liabilities | 0 | 29,000,000 | [3] | |||||||
Other non-current liabilities | 3,000,000 | 0 | [3] | |||||||
Non-current liabilities - held for sale | 3,000,000 | 0 | $ 43,000,000 | |||||||
Total liabilities classified as held for sale | 355,000,000 | 356,000,000 | [3] | |||||||
Cartus Relocation Services [Member] | Securitization obligation | ||||||||||
Liabilities [Abstract] | ||||||||||
Other Secured Financings | 231,000,000 | 206,000,000 | ||||||||
Relocation receivables and other related relocation assets that collateralize securitization obligations | 238,000,000 | $ 200,000,000 | ||||||||
Interest Expense, Debt | $ 8,000,000 | $ 9,000,000 | ||||||||
Weighted average interest rate on securitization obligations | 3.80% | 4.20% | 4.20% | |||||||
Cartus Financing Limited | Cartus Relocation Services [Member] | Securitization obligation | ||||||||||
Liabilities [Abstract] | ||||||||||
Other Secured Financings | $ 11,000,000 | $ 13,000,000 | ||||||||
Available capacity, debt | 9,000,000 | |||||||||
Cartus Financing Limited | Cartus Relocation Services [Member] | Securitization obligation | Working Capital Facility | ||||||||||
Liabilities [Abstract] | ||||||||||
Total capacity, securitization obligations | £ | £ 5 | |||||||||
Cartus Financing Limited | Cartus Relocation Services [Member] | Securitization obligation | Revolving Credit Facility | ||||||||||
Liabilities [Abstract] | ||||||||||
Total capacity, securitization obligations | £ | £ 10 | |||||||||
Apple Ridge Funding LLC | Cartus Relocation Services [Member] | Securitization obligation | ||||||||||
Liabilities [Abstract] | ||||||||||
Total capacity, securitization obligations | 250,000,000 | |||||||||
Other Secured Financings | 195,000,000 | $ 218,000,000 | ||||||||
Available capacity, debt | $ 55,000,000 | |||||||||
[1] | Adjustment to record assets and liabilities held for sale at the lower of carrying value or fair value less any costs to sell based on the Purchase Agreement | |||||||||
[2] | Income tax expense for the year ended December 31, 2019 relates to tax expense as a result of the expected taxable gain on the sale of Cartus Relocation Services, primarily as a result of the Company's low tax basis in goodwill, trademarks and other intangibles. | |||||||||
[3] | The assets and liabilities of Cartus Relocation Services are classified as current on the December 31, 2019 balance sheet because it is probable that the sale will occur and proceeds will be collected within one year. | |||||||||
[4] | Adjustment to record assets and liabilities held for sale at the lower of carrying value or fair value less any costs to sell based on the Purchase Agreement. |
Leases Lessee Disclosure - Narr
Leases Lessee Disclosure - Narrative (Details) | Dec. 31, 2019real_estate_leases |
Real estate leases | |
Lessee, Lease, Description [Line Items] | |
Number of real estate leases | 1,100 |
Real estate leases | Maximum | |
Lessee, Lease, Description [Line Items] | |
Brokerage sales offices | 17 years |
Real estate leases | Minimum | |
Lessee, Lease, Description [Line Items] | |
Brokerage sales offices | 1 year |
Brokerage sales offices | Maximum | |
Lessee, Lease, Description [Line Items] | |
Brokerage sales offices | 5 years |
Brokerage sales offices | Minimum | |
Lessee, Lease, Description [Line Items] | |
Brokerage sales offices | 1 year |
Short-term lease | Maximum | |
Lessee, Lease, Description [Line Items] | |
Brokerage sales offices | 12 months |
Leases Lessee Disclosure - Supp
Leases Lessee Disclosure - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee Disclosure [Abstract] | ||||
Operating lease assets, net | $ 515 | $ 525 | $ 0 | |
Property and equipment, net | [1] | 41 | ||
Total lease assets, net | 556 | |||
Current portion of operating lease liabilities | 122 | 126 | 0 | |
Current portion of finance/capital lease liabilities | 13 | 12 | ||
Long-term operating lease liabilities | 467 | $ 458 | $ 0 | |
Non-current portion of finance lease liabilities | 22 | |||
Total lease liabilities | $ 624 | |||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 1 month 6 days | |||
Finance Lease, Weighted Average Remaining Lease Term | 3 years 1 month 6 days | |||
Operating Lease, Weighted Average Discount Rate, Percent | 5.10% | |||
Finance Lease, Weighted Average Discount Rate, Percent | 4.10% | |||
Finance lease asset, accumulated depreciation | $ (34) | |||
[1] | Finance lease assets are recorded net of accumulated amortization of $34 million . |
Leases Lessee Disclosure - Leas
Leases Lessee Disclosure - Lease Liability Maturity Table (Details) $ in Millions | Dec. 31, 2019USD ($) |
Lessee Disclosure - Lease Maturity Table [Abstract] | |
Lessee, Liability, Payments, Due Next Twelve Months | $ 157 |
Lessee, Liability, Payments, Due Year Two | 146 |
Lessee, Liability, Payments, Due Year Three | 118 |
Lessee, Liability, Payments, Due Year Four | 89 |
Lessee, Liability, Payments, Due Year Five | 66 |
Lessee, Liability, Payments, Due after Year Five | 153 |
Lessee, Liability, Payments, Due | 729 |
Lease, Liability, Undiscounted Excess Amount | 105 |
Lease, Liability | 624 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 144 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 135 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 110 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 85 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 64 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 153 |
Total | 691 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 102 |
Operating Lease, Liability | 589 |
Finance Lease, Liability, Payment, Due [Abstract] | |
Finance Lease, Liability, Payments, Due Next Twelve Months | 13 |
Finance Lease, Liability, Payments, Due Year Two | 11 |
Finance Lease, Liability, Payments, Due Year Three | 8 |
Finance Lease, Liability, Payments, Due Year Four | 4 |
Finance Lease, Liability, Payments, Due Year Five | 2 |
Finance Lease, Liability, Payments, Due after Year Five | 0 |
Finance Lease, Liability, Payment, Due | 38 |
Finance Lease, Liability, Undiscounted Excess Amount | 3 |
Finance Lease, Liability | $ 35 |
Leases Lessee Disclosure - Le_2
Leases Lessee Disclosure - Lease Costs (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Leases [Abstract] | ||
Operating Lease, Cost | $ 158 | |
Finance Lease, Right-of-Use Asset, Amortization | 13 | |
Finance Lease, Interest Expense | 1 | |
Variable Lease, Cost | 28 | [1] |
Operating Lease, Impairment Loss | 12 | [2] |
Sublease Income | 3 | |
Lease, Cost | $ 209 | |
[1] | Primarily consists of variable lease costs. | |
[2] | Impairment charges relate to the exit and sublease of certain real estate operating leases |
Leases Lessee Disclosure - Su_2
Leases Lessee Disclosure - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Disclosure of Cash Flow Information | |||
Operating cash flows from operating leases | $ 153 | ||
Operating cash flows from finance leases | 1 | ||
Financing cash flows from finance leases | 14 | ||
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 153 | ||
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 18 | $ 20 | $ 18 |
Leases Lessee Disclosure - ASC
Leases Lessee Disclosure - ASC 840 Disclosures (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Leases [Abstract] | |||
2019 | $ 156,000,000 | ||
2020 | 136,000,000 | ||
2021 | 113,000,000 | ||
2022 | 90,000,000 | ||
2023 | 75,000,000 | ||
Thereafter | 175,000,000 | ||
Operating Leases, Future Minimum Payments Due | 745,000,000 | ||
Capital Leases, Future Minimum Payments Due | 33 | ||
Capital Leases, Future Minimum Payments, Interest Included in Payments | 2 | ||
Rent expense | $ 196 | $ 192 | |
Total | $ 691,000,000 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | $ (1,330) | $ (1,550) | $ (1,664) | $ (1,054) | $ (1,285) | $ (1,591) | $ (1,740) | $ (1,166) | $ (5,598) | [1],[2] | $ (5,782) | [1],[2] | $ (5,810) | [1],[2],[3] | ||||||
Approximate Percentage of Total Revenue from Gross Commission Income | 8000.00% | |||||||||||||||||||
Approximate Percentage of Total Revenue from Services Rendered | 1000.00% | |||||||||||||||||||
Approximate Percentage of Revenue from Franchise Fees | 700.00% | |||||||||||||||||||
Approximate Percentage of Other Revenue | 500.00% | |||||||||||||||||||
Realogy Franchise Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | (190) | (216) | (234) | (163) | (186) | (221) | (237) | (176) | $ (803) | [1],[2] | (820) | [1],[2] | (830) | [1],[2],[3] | ||||||
Realogy Brokerage Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | (1,040) | (1,222) | (1,331) | (816) | (1,014) | (1,268) | (1,408) | (917) | (4,409) | [1],[2] | (4,607) | [1],[2] | (4,643) | [1],[2],[3] | ||||||
Realogy Title Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | (152) | (170) | (160) | (114) | (136) | (162) | (162) | (120) | (596) | [1],[2] | (580) | [1],[2] | (570) | [1],[2],[3] | ||||||
Realogy Leads Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | (17) | (24) | (26) | (16) | (17) | (23) | (25) | (16) | (83) | [1],[2] | (81) | [1],[2] | (78) | [1],[2] | ||||||
Corporate and Other | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | $ 69 | $ 82 | $ 87 | $ 55 | [4] | $ 68 | [5] | $ 83 | [5] | $ 92 | [5] | $ 63 | [5] | 293 | [1],[2],[6] | 306 | [1],[2],[6] | 311 | [1],[2],[3],[6] | |
Gross Commission Income | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [7] | (4,330) | (4,533) | (4,576) | [3] | |||||||||||||||
Gross Commission Income | Realogy Franchise Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [7] | 0 | 0 | 0 | [3] | |||||||||||||||
Gross Commission Income | Realogy Brokerage Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [7] | (4,330) | (4,533) | (4,576) | [3] | |||||||||||||||
Gross Commission Income | Realogy Title Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [7] | 0 | 0 | 0 | [3] | |||||||||||||||
Gross Commission Income | Realogy Leads Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [7] | 0 | 0 | 0 | [3] | |||||||||||||||
Gross Commission Income | Corporate and Other | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [7] | 0 | 0 | 0 | [3] | |||||||||||||||
Service revenue | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [8] | (673) | (654) | (638) | [3] | |||||||||||||||
Service revenue | Realogy Franchise Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [8] | 0 | 0 | 0 | [3] | |||||||||||||||
Service revenue | Realogy Brokerage Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [8] | (11) | (9) | (9) | [3] | |||||||||||||||
Service revenue | Realogy Title Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [8] | (579) | (564) | (551) | [3] | |||||||||||||||
Service revenue | Realogy Leads Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [8] | (83) | (81) | (78) | [3] | |||||||||||||||
Service revenue | Corporate and Other | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [8] | 0 | 0 | 0 | [3] | |||||||||||||||
Franchise fees | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [9] | (386) | (393) | (396) | [3] | |||||||||||||||
Franchise fees | Realogy Franchise Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [9] | (668) | (688) | (695) | [3] | |||||||||||||||
Franchise fees | Realogy Brokerage Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [9] | 0 | 0 | 0 | [3] | |||||||||||||||
Franchise fees | Realogy Title Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [9] | 0 | 0 | 0 | [3] | |||||||||||||||
Franchise fees | Realogy Leads Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [9] | 0 | 0 | 0 | [3] | |||||||||||||||
Franchise fees | Corporate and Other | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [9] | (282) | 295 | 299 | [3] | |||||||||||||||
Other | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [10] | (209) | (202) | (200) | [3] | |||||||||||||||
Other | Realogy Franchise Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [10] | (135) | (132) | (135) | [3] | |||||||||||||||
Other | Realogy Brokerage Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [10] | (68) | (65) | (58) | [3] | |||||||||||||||
Other | Realogy Title Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [10] | (17) | (16) | (19) | [3] | |||||||||||||||
Other | Realogy Leads Group | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [10] | 0 | 0 | 0 | [3] | |||||||||||||||
Other | Corporate and Other | ||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||
Net revenues | [10] | $ 11 | $ 11 | $ 12 | [3] | |||||||||||||||
[1] | Revenues for Realo gy Leads Group include intercompany referral commissions paid by Realogy Brokerage Group of $18 million for each of the years ended December 31, 2019, 2018 and 2017. Such amounts are recorded as contra-revenues by Realogy Brokerage Group. There are no other material intersegment transactions. | |||||||||||||||||||
[2] | Transactions between segments are eliminated in consolidation. Revenues for Realogy Franchise Group include intercompany royalties and marketing fees paid by Realogy Brokerage Group of $293 million, $306 million and $311 million for the years ended December 31, 2019, 2018 and 2017, respectively. Such amounts are eliminated through the Corporate and Other line. | |||||||||||||||||||
[3] | Amounts for the year ended December 31, 2017 have not been adjusted under the modified retrospective method. | |||||||||||||||||||
[4] | Represents the elimination of transactions primarily between Realogy Franchise Group and Realogy Brokerage Group. | |||||||||||||||||||
[5] | Represents the elimination of transactions primarily between Realogy Franchise Group and Realogy Brokerage Group. | |||||||||||||||||||
[6] | Includes the elimination of transactions between segments. | |||||||||||||||||||
[7] | Approximately 80% of the Company's total net revenues is related to gross commission income at Realogy Brokerage Group, which is recognized at a point in time at the closing of a homesale transaction. | |||||||||||||||||||
[8] | Approximately 10% of the Company's total net revenues is related to service fees primarily consisting of title and escrow fees at Realogy Title Group, which are recognized at a point in time at the closing of a homesale transaction. | |||||||||||||||||||
[9] | Approximately 7% of the Company's total net revenues is related to franchise fees at Realogy Franchise Group, primarily domestic royalties, which are recognized at a point in time when the underlying franchisee revenue is earned (upon close of the homesale transaction). | |||||||||||||||||||
[10] | Less than 5% of the Company's total net revenues is related to other revenue, which comprised of brand marketing funds received at Realogy Franchise Group from franchisees, third-party listing fees and other miscellaneous revenues across all of the business segments. |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Deferred Revenue Arrangement [Line Items] | |||||
Royalty Rate | 600.00% | ||||
Deferred Revenue | $ 85 | $ 85 | $ 92 | ||
Deferred Revenue, Revenue Recognized | 146 | ||||
Movement in Deferred Revenue [Roll Forward] | |||||
Additions during the period | 139 | ||||
Recognized as Revenue during the period | (146) | ||||
Ending Balance at December 31, 2019 | 85 | ||||
Realogy Franchise Group | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred Revenue | [1] | 69 | 69 | 78 | |
Deferred Revenue, Revenue Recognized | [1] | 127 | |||
Deferred Sales Commission | 24 | $ 25 | |||
Movement in Deferred Revenue [Roll Forward] | |||||
Additions during the period | [1] | 118 | |||
Recognized as Revenue during the period | [1] | (127) | |||
Ending Balance at December 31, 2019 | [1] | 69 | |||
Realogy Franchise Group | Brand Marketing Fees | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred Revenue | 13 | 13 | 12 | ||
Movement in Deferred Revenue [Roll Forward] | |||||
Ending Balance at December 31, 2019 | 13 | ||||
Realogy Franchise Group | Area Development Fees | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred Revenue | 48 | 48 | 54 | ||
Deferred Revenue, Revenue Recognized | 8 | ||||
Movement in Deferred Revenue [Roll Forward] | |||||
Additions during the period | 2 | ||||
Recognized as Revenue during the period | (8) | ||||
Ending Balance at December 31, 2019 | 48 | ||||
Realogy Brokerage Group | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred Revenue | 13 | 13 | 14 | ||
Deferred Revenue, Revenue Recognized | 9 | ||||
Movement in Deferred Revenue [Roll Forward] | |||||
Additions during the period | 8 | ||||
Recognized as Revenue during the period | (9) | ||||
Ending Balance at December 31, 2019 | 13 | ||||
Realogy Brokerage Group | New Development Business | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred Revenue | 9 | 9 | 10 | ||
Deferred Revenue, Revenue Recognized | 2 | ||||
Movement in Deferred Revenue [Roll Forward] | |||||
Additions during the period | 1 | ||||
Recognized as Revenue during the period | (2) | ||||
Ending Balance at December 31, 2019 | 9 | ||||
Realogy Leads Group | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred Revenue | 3 | $ 3 | $ 0 | ||
Deferred Revenue, Revenue Recognized | 10 | ||||
Movement in Deferred Revenue [Roll Forward] | |||||
Additions during the period | 13 | ||||
Recognized as Revenue during the period | (10) | ||||
Ending Balance at December 31, 2019 | $ 3 | ||||
Minimum | Realogy Brokerage Group | |||||
Deferred Revenue Arrangement [Line Items] | |||||
New Development Period | 18 months | ||||
Maximum | Realogy Brokerage Group | |||||
Deferred Revenue Arrangement [Line Items] | |||||
New Development Period | 24 months | ||||
International Franchise Rights | Realogy Franchise Group | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Amortization period | 25 years | ||||
Franchise Rights | Realogy Franchise Group | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Amortization period | 30 years | ||||
[1] | Revenues recognized include intercompany marketing fees paid by Realogy Brokerage Group.The majority of the Company's contracts are transactional in nature or have a duration of one-year or less. Accordingly, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Intangible Assets Goodwill (Det
Intangible Assets Goodwill (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($) | Dec. 31, 2019USD ($)real_estate_brokerage_operations | Dec. 31, 2018USD ($)real_estate_brokerage_operations | Dec. 31, 2017USD ($)real_estate_brokerage_operations | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | |||||
Goodwill [Roll Forward] | |||||||||||
Goodwill Balance, beginning of period | $ 3,536,000,000 | $ 3,534,000,000 | $ 3,514,000,000 | ||||||||
Goodwill acquired | 1,000,000 | [1] | 2,000,000 | [2] | 20,000,000 | [3] | |||||
Goodwill, Impairment Loss | $ (1,153,000,000) | $ (489,000,000) | (237,000,000) | [4] | |||||||
Goodwill Balance, end of period | 3,300,000,000 | 3,536,000,000 | 3,534,000,000 | ||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||||
Gross goodwill | $ 5,179,000,000 | ||||||||||
Accumulated impairments (e) | [5] | (1,879,000,000) | |||||||||
Balance at December 31, 2019 | 3,300,000,000 | 3,536,000,000 | 3,534,000,000 | 3,300,000,000 | $ 3,300,000,000 | ||||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||||||
Impairment of Goodwill | $ 1,153,000,000 | $ 489,000,000 | 237,000,000 | [4] | |||||||
Goodwill, Impairment Loss, Tax | 57,000,000 | ||||||||||
Goodwill, Impairment Loss, net of taxes | 180,000,000 | ||||||||||
Realogy Franchise Group | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Goodwill Balance, beginning of period | 2,292,000,000 | 2,292,000,000 | 2,292,000,000 | ||||||||
Goodwill acquired | 0 | [1] | 0 | [2] | 0 | [3] | |||||
Goodwill, Impairment Loss | [4] | 0 | |||||||||
Goodwill Balance, end of period | 2,292,000,000 | 2,292,000,000 | 2,292,000,000 | ||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||||
Gross goodwill | 3,315,000,000 | ||||||||||
Accumulated impairments (e) | [5] | (1,023,000,000) | |||||||||
Balance at December 31, 2019 | 2,292,000,000 | $ 2,292,000,000 | $ 2,292,000,000 | 2,292,000,000 | |||||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||||||
Impairment of Goodwill | [4] | 0 | |||||||||
Realogy Brokerage Group | |||||||||||
Goodwill [Line Items] | |||||||||||
Number of Businesses Acquired | real_estate_brokerage_operations | 3 | 16 | |||||||||
Goodwill [Roll Forward] | |||||||||||
Goodwill Balance, beginning of period | 906,000,000 | $ 904,000,000 | $ 893,000,000 | ||||||||
Goodwill acquired | 0 | [1] | 2,000,000 | [2] | 11,000,000 | [3] | |||||
Goodwill, Impairment Loss | [4] | (237,000,000) | |||||||||
Goodwill Balance, end of period | 669,000,000 | 906,000,000 | 904,000,000 | ||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||||
Gross goodwill | 1,064,000,000 | ||||||||||
Accumulated impairments (e) | [5] | (395,000,000) | |||||||||
Balance at December 31, 2019 | 669,000,000 | 906,000,000 | $ 904,000,000 | 669,000,000 | |||||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||||||
Impairment of Goodwill | [4] | 237,000,000 | |||||||||
Goodwill, Impairment Loss, net of taxes | $ 180 | ||||||||||
Realogy Title Group | |||||||||||
Goodwill [Line Items] | |||||||||||
Number of Businesses Acquired | real_estate_brokerage_operations | 2 | 2 | |||||||||
Goodwill [Roll Forward] | |||||||||||
Goodwill Balance, beginning of period | $ 154,000,000 | 154,000,000 | $ 145,000,000 | ||||||||
Goodwill acquired | 1,000,000 | [1] | 0 | [2] | 9,000,000 | [3] | |||||
Goodwill, Impairment Loss | [4] | 0 | |||||||||
Goodwill Balance, end of period | 155,000,000 | 154,000,000 | 154,000,000 | ||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||||
Gross goodwill | 479,000,000 | ||||||||||
Accumulated impairments (e) | [5] | (324,000,000) | |||||||||
Balance at December 31, 2019 | 155,000,000 | 154,000,000 | 154,000,000 | 155,000,000 | |||||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||||||
Impairment of Goodwill | [4] | 0 | |||||||||
Realogy Leads Group | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Goodwill Balance, beginning of period | 184,000,000 | 184,000,000 | 184,000,000 | ||||||||
Goodwill acquired | 0 | [1] | 0 | [2] | 0 | [3] | |||||
Goodwill, Impairment Loss | [4] | 0 | |||||||||
Goodwill Balance, end of period | 184,000,000 | 184,000,000 | 184,000,000 | ||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||||
Gross goodwill | 321,000,000 | ||||||||||
Accumulated impairments (e) | [5] | (137,000,000) | |||||||||
Balance at December 31, 2019 | 184,000,000 | $ 184,000,000 | $ 184,000,000 | $ 184,000,000 | |||||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||||||
Impairment of Goodwill | [4] | $ 0 | |||||||||
[1] | Goodwill acquired during the year ended December 31, 2019 relates to the acquisition of two title and settlement operations. | ||||||||||
[2] | Goodwill acquired during the year ended December 31, 2018 relates to the acquisition of three real estate brokerage operations. | ||||||||||
[3] | Goodwill acquired during the year ended December 31, 2017 relates to the acquisition of sixteen real estate brokerage operations and two title and settlement operations. | ||||||||||
[4] | The Company recognized a goodwill impairment charge of $237 million during the third quarter of 2019 related to Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 20, "Selected Quarterly Financial Data", for additional information). | ||||||||||
[5] | Includes impairment charges which reduced goodwill by $237 million, $1,153 million and $489 million during the third quarter of 2019, fourth quarter of 2008 and fourth quarter of 2007, respectively. |
Intangible Assets Intangible As
Intangible Assets Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of indefinite-lived intangible assets | $ 692 | ||
Gross carrying amount of total other intangibles | 162 | $ 167 | |
Accumulated Amortization | 90 | 87 | |
Net carrying amount of finite-lived and indefinite-lived intangible assets | 72 | 80 | |
Indefinite life—Trademarks (b) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of indefinite-lived intangible assets | [1] | 673 | 673 |
Indefinite life—Title plant shares (e) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount of indefinite-lived intangible assets | [2] | 19 | 18 |
Amortizable—Franchise agreements (a) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | [3] | 2,019 | 2,019 |
Accumulated Amortization | [3] | 859 | 792 |
Net carrying amount of finite-lived intangible assets | [3] | 1,160 | 1,227 |
Amortizable—License agreements (c) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | [4] | 45 | 45 |
Accumulated Amortization | [4] | 12 | 11 |
Net carrying amount of finite-lived intangible assets | [4] | $ 33 | 34 |
Amortization period | 50 years | ||
Amortizable—Customer relationships (d) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | [5] | $ 71 | 71 |
Accumulated Amortization | [5] | 57 | 55 |
Net carrying amount of finite-lived intangible assets | [5] | 14 | 16 |
Amortizable—Other (f) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | [6] | 27 | 33 |
Accumulated Amortization | [6] | 21 | 21 |
Net carrying amount of finite-lived intangible assets | [6] | $ 6 | $ 12 |
Minimum | Amortizable—Customer relationships (d) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 2 years | ||
Minimum | Amortizable—Other (f) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 5 years | ||
Maximum | Amortizable—Customer relationships (d) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 12 years | ||
Maximum | Amortizable—Other (f) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 10 years | ||
Realogy Franchise Group | Amortizable—Franchise agreements (a) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 30 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 Title Group and Realogy Brokerage Group. These relationships are being amortized over a period of 2 to 12 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 Amortization
Intangible Assets Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Finite-Lived Intangible Assets, Amortization Expense [Line Items] | |||
Amortization of Intangible Assets | $ 76 | $ 76 | $ 81 |
Expected amortization expense for 2020 | 73 | ||
Expected amortization expense for 2021 | 71 | ||
Expected amortization expense for 2022 | 70 | ||
Expected amortization expense for 2023 | 70 | ||
Expected amortization expense for 2024 | 70 | ||
Expected amortization expense thereafter | 859 | ||
Amortizable—Franchise agreements (a) | |||
Schedule of Finite-Lived Intangible Assets, Amortization Expense [Line Items] | |||
Amortization of Intangible Assets | 67 | 67 | 67 |
Amortizable—License agreements (c) | |||
Schedule of Finite-Lived Intangible Assets, Amortization Expense [Line Items] | |||
Amortization of Intangible Assets | 1 | 1 | 1 |
Amortizable—Customer relationships (d) | |||
Schedule of Finite-Lived Intangible Assets, Amortization Expense [Line Items] | |||
Amortization of Intangible Assets | 2 | 3 | 4 |
Amortizable—Other (f) | |||
Schedule of Finite-Lived Intangible Assets, Amortization Expense [Line Items] | |||
Amortization of Intangible Assets | $ 6 | $ 5 | $ 9 |
Franchising and Marketing Act_3
Franchising and Marketing Activities (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($)Brokerage_Offices | Dec. 31, 2018USD ($)franchisedandcompanyownedoffices | Dec. 31, 2017USD ($)franchisedandcompanyownedoffices | Dec. 31, 2019franchisedandcompanyownedoffices | Dec. 31, 2016franchisedandcompanyownedoffices | |
Franchisor Disclosure [Line Items] | |||||
Initial franchise and area development fees | $ | $ 9 | $ 6 | $ 8 | ||
Annual volume incentives from Real Estate Franchisees | $ | 50 | 52 | 62 | ||
Brand Marketing Fund Revenue | $ | 90 | $ 86 | $ 87 | ||
Franchised (domestic and international): | |||||
Franchisor Disclosure [Line Items] | |||||
Number of offices | 15,830 | 14,039 | 17,776 | 13,314 | |
Franchised (domestic and international): | Century 21® | |||||
Franchisor Disclosure [Line Items] | |||||
Number of offices | 9,637 | 7,973 | 11,640 | ||
Franchised (domestic and international): | ERA® | |||||
Franchisor Disclosure [Line Items] | |||||
Number of offices | 2,331 | 2,298 | 2,301 | ||
Franchised (domestic and international): | Coldwell Banker® | |||||
Franchisor Disclosure [Line Items] | |||||
Number of offices | 2,380 | 2,330 | 2,323 | ||
Franchised (domestic and international): | Coldwell Banker Commercial® | |||||
Franchisor Disclosure [Line Items] | |||||
Number of offices | 171 | 180 | 159 | ||
Franchised (domestic and international): | Sotheby’s International Realty® | |||||
Franchisor Disclosure [Line Items] | |||||
Number of offices | 949 | 905 | 962 | ||
Franchised (domestic and international): | Better Homes and Gardens® Real Estate | |||||
Franchisor Disclosure [Line Items] | |||||
Number of offices | 362 | 353 | 391 | ||
Company owned: | |||||
Franchisor Disclosure [Line Items] | |||||
Royalty expense | $ | (282) | $ (295) | $ (299) | ||
Marketing and Advertising Expense | $ | $ (11) | $ (11) | $ (12) | ||
Number of offices | 710 | 755 | 789 | 713 | 789 |
Company owned: | Coldwell Banker® | |||||
Franchisor Disclosure [Line Items] | |||||
Number of offices | 672 | 707 | 634 | ||
Company owned: | Sotheby’s International Realty® | |||||
Franchisor Disclosure [Line Items] | |||||
Number of offices | 41 | 41 | 37 | ||
Company owned: | Corcoran®/Other | |||||
Franchisor Disclosure [Line Items] | |||||
Number of offices | 42 | 41 | 42 |
Franchising and Marketing Act_4
Franchising and Marketing Activities Change in the Number of Franchised and Brokerage Outlets (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($)Brokerage_Offices | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)franchisedandcompanyownedoffices | Dec. 31, 2018USD ($)franchisedandcompanyownedoffices | Dec. 31, 2017USD ($)franchisedandcompanyownedoffices | |
Franchised (domestic and international): | |||||
Change in Number of Franchised and Company Owned Outlets [Roll Forward] | |||||
Beginning balance | 15,830 | 14,039 | 13,314 | ||
Additions | 2,399 | 2,149 | 1,137 | ||
Terminations/Closures | (453) | (358) | (412) | ||
Ending balance | 17,776 | 15,830 | 14,039 | ||
Company owned: | |||||
Change in Number of Franchised and Company Owned Outlets [Roll Forward] | |||||
Beginning balance | 755 | 789 | 789 | ||
Additions | 4 | 8 | 20 | ||
Terminations/Closures | (46) | (42) | (20) | ||
Ending balance | 710 | 713 | 755 | 789 | |
Franchisee Conversion Notes and Development Advance Notes | |||||
Change in Number of Franchised and Company Owned Outlets [Roll Forward] | |||||
Franchise conversion and development advance notes | $ | $ 134 | $ 134 | $ 134 | $ 131 | |
Forgiveness of franchise conversion and development advance notes | $ | $ 29 | $ 29 | $ 25 |
Property and Equipment, Net P_3
Property and Equipment, Net Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 867 | $ 811 | |
Less: accumulated depreciation | (559) | (538) | |
Property and equipment, net | 308 | 273 | |
Depreciation and amortization expense | 93 | 88 | $ 85 |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 162 | 176 | |
Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 334 | 293 | |
Assets Held under Finance/Capital Leases | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 76 | 64 | |
Building and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 292 | 275 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 3 | $ 3 |
Accrued Expenses And Other Cu_3
Accrued Expenses And Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | |||
Accrued payroll and related employee costs | $ 103 | $ 106 | |
Accrued volume incentives | 35 | 37 | |
Accrued commissions | 32 | 30 | |
Restructuring accruals | 11 | 14 | |
Deferred income | 43 | 50 | |
Accrued interest | 18 | 15 | |
Current portion of finance/capital lease liabilities | 13 | 12 | |
Due to former parent | 18 | 21 | |
Other | 77 | 59 | |
Total accrued expenses and other current liabilities | $ 350 | $ 332 | $ 344 |
Short And Long-Term Debt Schedu
Short And Long-Term Debt Schedule of Total Indebtedness (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term Debt | $ 3,445 | ||
Total Short-Term & Long-Term Debt | 3,445 | $ 3,548 | |
Line of Credit | Revolving Credit Facility | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term Line of Credit | 190 | [1],[2] | 270 |
Secured Debt | Term Loan B | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term Debt | 1,045 | [2] | 1,053 |
Secured Debt | Term Loan A | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term Debt | 714 | 732 | |
Senior Notes | 4.50% Senior Notes | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term Debt | 0 | 449 | |
Senior Notes | 5.25% Senior Notes | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term Debt | 548 | 547 | |
Senior Notes | 4.875% Senior Notes | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term Debt | 405 | 497 | |
Senior Notes | 9.375% Senior Notes | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term Debt | $ 543 | $ 0 | |
[1] | Interest rates with respect to revolving loans under the Senior Secured Credit Facility at December 31, 2019 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 2.25% and the ABR margin was 1.25% for the three months ended December 31, 2019. | ||
[2] | The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B 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%). |
Short And Long-Term Debt Sche_2
Short And Long-Term Debt Schedule of Debt (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2019 | Feb. 21, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | Feb. 28, 2018 | Jan. 31, 2017 | |||
Principal Amount | ||||||||
Long-term Debt, Gross | $ 3,472,000,000 | |||||||
Unamortized Discount and Debt Issuance Costs | ||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 27,000,000 | |||||||
Net Amount | ||||||||
Outstanding borrowings, long-term debt | $ 3,445,000,000 | |||||||
LIBOR | ||||||||
Net Amount | ||||||||
Description of variable interest rate basis | LIBOR | |||||||
ABR | ||||||||
Net Amount | ||||||||
Description of variable interest rate basis | ABR | |||||||
Revolving Credit Facility | Line of Credit | ||||||||
Principal Amount | ||||||||
Outstanding borrowings, short-term debt, line of credit facility | $ 190,000,000 | [1],[2] | $ 270,000,000 | |||||
Net Amount | ||||||||
Outstanding borrowings, short-term debt, line of credit facility | 190,000,000 | [1],[2] | 270,000,000 | |||||
Line of credit facility borrowing capacity | 1,425,000,000 | $ 1,400,000,000 | $ 1,050,000,000 | |||||
Long-term Line of Credit | $ 190,000,000 | [1],[2] | 270,000,000 | |||||
Revolving Credit Facility | Line of Credit | LIBOR | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ||||||||
Net Amount | ||||||||
Debt Instrument, basis spread on variable rate | 2.25% | |||||||
Revolving Credit Facility | Line of Credit | ABR | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ||||||||
Net Amount | ||||||||
Debt Instrument, basis spread on variable rate | 1.25% | |||||||
Revolving Credit Facility | Line of Credit | Subsequent Event | ||||||||
Principal Amount | ||||||||
Outstanding borrowings, short-term debt, line of credit facility | $ 310,000,000 | |||||||
Net Amount | ||||||||
Outstanding borrowings, short-term debt, line of credit facility | 310,000,000 | |||||||
Long-term Line of Credit | 310,000,000 | |||||||
Revolving Credit Facility | Letter of Credit | ||||||||
Principal Amount | ||||||||
Outstanding borrowings, short-term debt, line of credit facility | $ 57,000,000 | |||||||
Net Amount | ||||||||
Outstanding borrowings, short-term debt, line of credit facility | 57,000,000 | |||||||
Long-term Line of Credit | $ 57,000,000 | |||||||
Revolving Credit Facility | Letter of Credit | Subsequent Event | ||||||||
Principal Amount | ||||||||
Outstanding borrowings, short-term debt, line of credit facility | 57,000,000 | |||||||
Net Amount | ||||||||
Outstanding borrowings, short-term debt, line of credit facility | 57,000,000 | |||||||
Long-term Line of Credit | $ 57,000,000 | |||||||
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% | |||||||
Term Loan B | Secured Debt | ||||||||
Principal Amount | ||||||||
Long-term Debt, Gross | $ 1,058,000,000 | [2] | 1,069,000,000 | 1,080,000,000 | ||||
Unamortized Discount and Debt Issuance Costs | ||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | [2] | 13,000,000 | ||||||
Net Amount | ||||||||
Outstanding borrowings, long-term debt | $ 1,045,000,000 | [2] | 1,053,000,000 | |||||
Annual percentage of original principal amount for quarterly amortization payments | 1.00% | |||||||
Term Loan A | Secured Debt | ||||||||
Principal Amount | ||||||||
Long-term Debt, Gross | $ 717,000,000 | 736,000,000 | $ 750,000,000 | |||||
Unamortized Discount and Debt Issuance Costs | ||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 3,000,000 | |||||||
Net Amount | ||||||||
Outstanding borrowings, long-term debt | $ 714,000,000 | 732,000,000 | ||||||
Term Loan A | Secured Debt | LIBOR | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ||||||||
Net Amount | ||||||||
Debt Instrument, basis spread on variable rate | 2.25% | |||||||
Term Loan A | Secured Debt | ABR | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ||||||||
Net Amount | ||||||||
Debt Instrument, basis spread on variable rate | 1.25% | |||||||
Term Loan A | Secured Debt | 2018 | ||||||||
Net Amount | ||||||||
Annual percentage of original principal amount for quarterly amortization payments | 2.50% | |||||||
Term Loan A | Secured Debt | 2019 | ||||||||
Net Amount | ||||||||
Annual percentage of original principal amount for quarterly amortization payments | 2.50% | |||||||
Term Loan A | Secured Debt | 2020 | ||||||||
Net Amount | ||||||||
Annual percentage of original principal amount for quarterly amortization payments | 5.00% | |||||||
Term Loan A | Secured Debt | 2021 | ||||||||
Net Amount | ||||||||
Annual percentage of original principal amount for quarterly amortization payments | 7.50% | |||||||
Term Loan A | Secured Debt | 2022 | ||||||||
Net Amount | ||||||||
Annual percentage of original principal amount for quarterly amortization payments | 10.00% | |||||||
5.25% Senior Notes | Senior Notes | ||||||||
Principal Amount | ||||||||
Long-term Debt, Gross | $ 550,000,000 | 550,000,000 | ||||||
Unamortized Discount and Debt Issuance Costs | ||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 2,000,000 | |||||||
Net Amount | ||||||||
Outstanding borrowings, long-term debt | $ 548,000,000 | 547,000,000 | ||||||
Interest Rate | 5.25% | |||||||
4.875% Senior Notes | Senior Notes | ||||||||
Principal Amount | ||||||||
Long-term Debt, Gross | $ 407,000,000 | 500,000,000 | ||||||
Unamortized Discount and Debt Issuance Costs | ||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 2,000,000 | |||||||
Net Amount | ||||||||
Outstanding borrowings, long-term debt | $ 405,000,000 | 497,000,000 | ||||||
Interest Rate | 4.875% | |||||||
9.375% Senior Notes | Senior Notes | ||||||||
Principal Amount | ||||||||
Long-term Debt, Gross | $ 550,000,000 | $ 550 | 0 | |||||
Unamortized Discount and Debt Issuance Costs | ||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 7,000,000 | |||||||
Net Amount | ||||||||
Outstanding borrowings, long-term debt | $ 543,000,000 | $ 0 | ||||||
Interest Rate | 9.375% | |||||||
[1] | Interest rates with respect to revolving loans under the Senior Secured Credit Facility at December 31, 2019 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 2.25% and the ABR margin was 1.25% for the three months ended December 31, 2019. | |||||||
[2] | The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B 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%). |
Short And Long-Term Debt Debt M
Short And Long-Term Debt Debt Maturities Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Feb. 21, 2020 | Dec. 31, 2018 | ||
Maturities of Long-term Debt [Abstract] | |||||
2020 (a) | $ 234 | ||||
2021 | 612 | ||||
2022 | 81 | ||||
2023 | 981 | ||||
2024 | $ 11 | ||||
Long-term Debt Maturities, Years Presented | 5 years | ||||
Revolving Credit Facility | Line of Credit | |||||
Maturities of Long-term Debt [Abstract] | |||||
Long-term Line of Credit | $ 190 | [1],[2] | $ 270 | ||
Scenario, Forecast | Secured Debt | Term Loan A | |||||
Maturities of Long-term Debt [Abstract] | |||||
Debt Instrument, Periodic Payment, Principal | $ 33 | ||||
Scenario, Forecast | Secured Debt | Term Loan B | |||||
Maturities of Long-term Debt [Abstract] | |||||
Debt Instrument, Periodic Payment, Principal | $ 11 | ||||
Subsequent Event | Revolving Credit Facility | Line of Credit | |||||
Maturities of Long-term Debt [Abstract] | |||||
Long-term Line of Credit | $ 310 | ||||
[1] | Interest rates with respect to revolving loans under the Senior Secured Credit Facility at December 31, 2019 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 2.25% and the ABR margin was 1.25% for the three months ended December 31, 2019. | ||||
[2] | The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B 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%). |
Short And Long-Term Debt Senior
Short And Long-Term Debt Senior Secured Credit Facility (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 28, 2018 | Jan. 31, 2017 | Mar. 05, 2013 | ||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 3,472,000,000 | ||||||
Letter of Credit, borrowing capacity | $ 125 | ||||||
Additional Credit Facilities | $ 500,000,000 | ||||||
Maximum | Required Covenant Ratio to Receive Additional Credit Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Senior secured leverage ratio | 3.50 | ||||||
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 | 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 | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility borrowing capacity | $ 1,425,000,000 | $ 1,400,000,000 | $ 1,050,000,000 | ||||
Line of Credit Facility, Increase (Decrease), Net | $ 25,000,000 | ||||||
Line of Credit | Revolving Credit Facility | Greater than 3.50 to 1.00 | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, basis spread on variable rate | 2.50% | ||||||
Line of Credit | Revolving Credit Facility | Greater than 3.50 to 1.00 | ABR | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, basis spread on variable rate | 1.50% | ||||||
Line of Credit | Revolving Credit Facility | 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% | ||||||
Line of Credit | Revolving Credit Facility | 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% | ||||||
Line of Credit | Revolving Credit Facility | 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% | ||||||
Line of Credit | Revolving Credit Facility | 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% | ||||||
Line of Credit | Revolving Credit Facility | Less than 2.00 to 1.00 | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, basis spread on variable rate | 1.75% | ||||||
Line of Credit | Revolving Credit Facility | Less than 2.00 to 1.00 | ABR | |||||||
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, Gross | $ 1,058,000,000 | [1] | $ 1,069,000,000 | $ 1,080,000,000 | |||
Annual percentage of original principal amount for quarterly amortization payments | 1.00% | ||||||
[1] | The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B 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%). |
Short And Long-Term Debt Term L
Short And Long-Term Debt Term Loan A Facility (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Feb. 28, 2018 | Jul. 20, 2016 | Oct. 23, 2015 | Mar. 05, 2013 | |
Debt Instrument [Line Items] | |||||||
Debt Instrument, Repurchase Amount | $ 93 | ||||||
Long-term Debt, Gross | $ 3,472,000,000 | ||||||
Additional Credit Facilities | $ 500,000,000 | ||||||
Maximum | Required Covenant Ratio to Receive Additional Credit Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Ratio of Indebtedness to Net Capital | 3.50 | ||||||
Ratio of Indebtedness to Net Capital Denominator | 1 | ||||||
Secured Debt | Term Loan A | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Repurchase Amount | $ 435,000,000 | ||||||
Long-term Debt, Gross | $ 717,000,000 | $ 736,000,000 | $ 750,000,000 | ||||
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 A | 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Annual percentage of original principal amount for quarterly amortization payments | 2.50% | ||||||
Secured Debt | Term Loan A | 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Annual percentage of original principal amount for quarterly amortization payments | 2.50% | ||||||
Secured Debt | Term Loan A | 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Annual percentage of original principal amount for quarterly amortization payments | 5.00% | ||||||
Secured Debt | Term Loan A | 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Annual percentage of original principal amount for quarterly amortization payments | 7.50% | ||||||
Secured Debt | Term Loan A | 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Annual percentage of original principal amount for quarterly amortization payments | 10.00% | ||||||
Secured Debt | Term Loan A-1 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Repurchase Amount | $ 355,000,000 | ||||||
Secured Debt | Term Loan A Facility | |||||||
Debt Instrument [Line Items] | |||||||
Additional Credit Facilities | $ 500,000,000 | ||||||
Secured Debt | Term Loan A Facility | Maximum | Required Covenant Ratio to Receive Additional Credit Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Ratio of Indebtedness to Net Capital | 350.00% | ||||||
Ratio of Indebtedness to Net Capital Denominator | 100.00% |
Short And Long-Term Debt Unsecu
Short And Long-Term Debt Unsecured Notes (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($)Rate | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)Rate | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | [1] | Jan. 01, 2019USD ($) | |||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Gross | $ 3,472,000,000 | |||||||||
Debt Instrument, Repurchase Amount | $ 93 | |||||||||
Gain (Loss) on Extinguishment of Debt | 10,000,000 | $ (5,000,000) | $ (7,000,000) | $ 5,000,000 | [1] | $ (7,000,000) | [1] | $ (5,000,000) | ||
Amount that the cumulative credit basket for restricted payments was reset to on January 1, 2019 | $ 0 | |||||||||
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 | Rate | 25.00% | |||||||||
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 | Rate | 50.00% | |||||||||
Percent of the deficit by which the cumulative credit basket is reduced when consolidated net income is in a deficit position | Rate | 1 | |||||||||
General restricted payment basket may be used only for restricted investments (as defined in the indenture to the 9.375% notes) | $ 100,000,000 | |||||||||
Consolidated Leverage Ratio - Unlimited General Restricted Payment Basket - Numerator | 3 | |||||||||
Consolidated Leverage Ratio - Unlimited Restricted Payment Basket - Denominator | 1 | |||||||||
Max amount of shares repurchased and dividends declared per year under the 9.375 Credit Agreement | $ 45,000,000 | |||||||||
Net Debt Seasonality Adjustment | 200,000,000 | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of Debt | $ 83 | 540,000,000 | ||||||||
Senior Notes | 4.50% Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Gross | $ 450,000,000 | 0 | 450,000,000 | |||||||
Interest Rate | Rate | 4.50% | |||||||||
Senior Notes | 9.375% Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Gross | $ 550 | $ 550,000,000 | 0 | |||||||
Interest Rate | 9.375% | |||||||||
Senior Notes | 5.25% Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Gross | $ 550,000,000 | 550,000,000 | ||||||||
Interest Rate | 5.25% | |||||||||
Senior Notes | 4.875% Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt, Gross | $ 407,000,000 | $ 500,000,000 | ||||||||
Interest Rate | 4.875% | |||||||||
[1] | Former parent legacy items and (Gain) loss on the early extinguishment of debt are recorded in Corporate and Other. |
Short And Long-Term Debt Other
Short And Long-Term Debt Other Debt Facilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Letter of Credit, borrowing capacity | $ 125 | |
Unsecured Letter of Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Letter of Credit, borrowing capacity | $ 66,000,000 | |
Outstanding letter of credit | $ 63,000,000 |
Short And Long-Term Debt Loss o
Short And Long-Term Debt Loss on the Early Extinguishment of Debt (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2019 | [1] | Dec. 31, 2018 | Dec. 31, 2017 | [1] | ||
Debt Disclosure [Abstract] | |||||||||
(Gain) loss on the early extinguishment of debt | $ (10,000,000) | $ 5,000,000 | $ 7,000,000 | $ (5,000,000) | $ 7,000,000 | [1] | $ 5,000,000 | ||
Debt Instrument, Repurchase Amount | $ 93 | ||||||||
Write off of Deferred Debt Issuance Cost | $ 2,000,000 | ||||||||
[1] | Former parent legacy items and (Gain) loss on the early extinguishment of debt are recorded in Corporate and Other. |
Changes in Benefit Obligations
Changes in Benefit Obligations and Plan Assets Table (Details) - Defined Benefit Pension Plan - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net Periodic Benefit Cost | ||
Net periodic pension cost | $ 2 | $ 1 |
Interest cost | 5 | 5 |
Actuarial loss | 2 | 2 |
Expected return on plan assets | (5) | (7) |
Benefit Obligations | ||
Defined Benefit Plan, Benefit Obligation | 143 | 128 |
Fair value of plan assets | 100 | 90 |
Underfunded at end of year | $ 43 | $ 38 |
Employee Benefit Plans Estimate
Employee Benefit Plans Estimated Future Funding (Details) - Defined Benefit Pension Plan $ in Millions | Dec. 31, 2019USD ($) |
Expected Future Benefit Payments, Fiscal Year Maturity | |
2020 | $ 9 |
2021 | 9 |
2022 | 9 |
2023 | 9 |
2024 | 9 |
2025 through 2029 | 45 |
Estimated minimum funding required during 2019 | $ 8 |
Employee Benefit Plans Fair Val
Employee Benefit Plans Fair Value of Plan Assets by Category (Details) - Defined Benefit Pension Plan - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 100 | $ 90 |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | 3 |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 51 | 43 |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 48 | 44 |
Fair Value, Inputs, Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | 3 |
Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | 3 |
Fair Value, Inputs, Level 1 | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 99 | 87 |
Fair Value, Inputs, Level 2 | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 51 | 43 |
Fair Value, Inputs, Level 2 | Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 48 | 44 |
Fair Value, Inputs, Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans Other Em
Employee Benefit Plans Other Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Employee Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit Obligation | $ 5 | $ 5 | |
Defined Contribution Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | $ 17 | $ 16 | $ 16 |
Income Taxes Pre-tax Income (Lo
Income Taxes Pre-tax Income (Loss) for Domestic and Foreign Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (140) | $ 213 | $ 362 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 0 | 0 | 0 |
Pre-tax Income | $ (140) | $ 213 | $ 362 |
Income Tax Provision (Details)
Income Tax Provision (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Current: | ||||||||
Federal | $ 3 | $ (11) | $ (8) | |||||
State | 7 | 5 | 4 | |||||
Foreign | 2 | 2 | 2 | |||||
Current Income Tax Expense (Benefit) | 12 | (4) | (2) | |||||
Deferred: | ||||||||
Federal | (25) | 61 | (73) | |||||
State | (9) | 10 | 9 | |||||
Foreign | 0 | 0 | 0 | |||||
Deferred Income Tax Expense (Benefit) | $ (29) | (34) | 71 | (64) | ||||
Income tax (benefit) expense from continuing operations | $ (23) | $ (22) | $ (22) | [1] | $ 67 | [1] | $ (66) | [1] |
Federal statutory rate | 21.00% | 21.00% | 35.00% | |||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ (184) | |||||||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ (32) | |||||||
[1] | Income tax benefit for the year ended December 31, 2017 reflects the impact of the 2017 Tax Act. |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 35.00% |
State and local income taxes, net of federal tax benefits | 6.00% | 5.00% | 4.00% |
Change in Enacted Tax Rate | 0.00% | 0.00% | (50.00%) |
Non-deductible equity compensation | (4.00%) | 2.00% | 0.00% |
Non-deductible executive compensation | (1.00%) | 1.00% | 0.00% |
Goodwill impairment | (3.00%) | 0.00% | 0.00% |
Meals & entertainment | (2.00%) | 0.00% | 0.00% |
Other permanent differences | (1.00%) | 1.00% | 0.00% |
Uncertain tax positions | 0.00% | (1.00%) | (9.00%) |
Net change in valuation allowance | 0.00% | 2.00% | 1.00% |
Other | 0.00% | 0.00% | 1.00% |
Effective income tax rate | 16.00% | 31.00% | (18.00%) |
Income Taxes Deferred Income Ta
Income Taxes Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 173 | $ 236 |
Tax credit carryforwards | 29 | 24 |
Accrued liabilities and deferred income | 77 | 92 |
Operating leases | 169 | 0 |
Minimum pension obligations | 18 | 16 |
Provision for doubtful accounts | 7 | 7 |
Liability for unrecognized tax benefits | 1 | 1 |
Interest rate swaps | 12 | 5 |
Total deferred tax assets | 486 | 381 |
Less: valuation allowance | (14) | (14) |
Total deferred income tax assets after valuation allowance | 472 | 367 |
Deferred income tax liabilities: | ||
Depreciation and amortization | 704 | 747 |
Operating leases | 146 | 0 |
Prepaid expenses | 8 | 8 |
Basis difference in investment in joint ventures | 2 | 1 |
Other | 2 | 0 |
Total deferred tax liabilities | 862 | 756 |
Deferred Tax Assets, Net, Classification [Abstract] | ||
Net deferred income tax liabilities | (390) | $ (389) |
Operating Loss Carryforwards | $ 588 |
Income Taxes Accounting for Unc
Income Taxes Accounting for Uncertainty in Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits | $ (19) | $ (19) | $ (20) | $ (20) |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 17 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 1 | |||
Increase (Decrease) in Interest Accrued for Unrecognized Tax Benefits | 1 | 2 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | ||||
Unrecognized Tax Benefits, Beginning of Period | 19 | 20 | 75 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (54) | |||
Reduction due to lapse of statute of limitations | (1) | (1) | ||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 1 | |||
Unrecognized Tax Benefits, End of Period | $ 20 | $ 19 | $ 20 |
Income Taxes Tax Sharing Agreem
Income Taxes Tax Sharing Agreement (Details) | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | |
Guaranty Arrangement Percentage of Obligations Assumed by Realogy | 62.50% |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Restructuring costs, net | $ 13 | $ 11 | $ 9 | $ 9 | $ 11 | $ 9 | $ 5 | $ 22 | $ 42 | [1],[2] | $ 47 | [1],[2] | $ 12 | [1],[2] | |
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||||||||
Operating Lease, Impairment Loss | [3] | 12 | |||||||||||||
Realogy Franchise Group | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Restructuring costs, net | 2 | 3 | 1 | ||||||||||||
Realogy Brokerage Group | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Restructuring costs, net | 25 | 37 | 9 | ||||||||||||
Realogy Title Group | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Restructuring costs, net | 3 | 4 | 1 | ||||||||||||
Realogy Leads Group | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Restructuring costs, net | 2 | ||||||||||||||
Corporate and Other | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Restructuring costs, net | 10 | 3 | 1 | ||||||||||||
Leadership Realignment | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Balance at December 31, 2018 | 17 | 17 | |||||||||||||
Increase (Decrease) in Restructuring Reserve | (12) | ||||||||||||||
Balance at December 31, 2019 | 17 | 17 | |||||||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||||||||
Total amount remaining to be incurred | 5 | 5 | |||||||||||||
Amount reclassified from Restructure against the Lease Asset upon Adoption of ASC 842 | (3) | ||||||||||||||
Operational Efficiencies Program | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Balance at December 31, 2018 | 0 | 0 | |||||||||||||
Restructuring costs, net | 38 | ||||||||||||||
Increase (Decrease) in Restructuring Reserve | (27) | ||||||||||||||
Balance at December 31, 2019 | 11 | 0 | 11 | 0 | |||||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||||||||
Total amount expected to be incurred | 71 | 71 | |||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 38 | 38 | |||||||||||||
Total amount remaining to be incurred | 33 | 33 | |||||||||||||
Operational Efficiencies Program | Realogy Franchise Group | |||||||||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||||||||
Total amount expected to be incurred | 3 | 3 | |||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 2 | 2 | |||||||||||||
Total amount remaining to be incurred | 1 | 1 | |||||||||||||
Operational Efficiencies Program | Realogy Brokerage Group | |||||||||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||||||||
Total amount expected to be incurred | 54 | 54 | |||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 25 | 25 | |||||||||||||
Total amount remaining to be incurred | 29 | 29 | |||||||||||||
Operational Efficiencies Program | Realogy Title Group | |||||||||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||||||||
Total amount expected to be incurred | 2 | 2 | |||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 2 | 2 | |||||||||||||
Total amount remaining to be incurred | 0 | 0 | |||||||||||||
Operational Efficiencies Program | Realogy Leads Group | |||||||||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||||||||
Total amount expected to be incurred | 2 | 2 | |||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 2 | 2 | |||||||||||||
Total amount remaining to be incurred | 0 | 0 | |||||||||||||
Operational Efficiencies Program | Corporate and Other | |||||||||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||||||||
Total amount expected to be incurred | 10 | 10 | |||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 7 | 7 | |||||||||||||
Total amount remaining to be incurred | 3 | 3 | |||||||||||||
Other Restructuring Programs | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Restructuring costs, net | 4 | ||||||||||||||
Personnel-related costs | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Restructuring costs, net | [4] | 24 | 17 | 7 | |||||||||||
Personnel-related costs | Leadership Realignment | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Restructuring costs, net | 3 | ||||||||||||||
Personnel-related costs | Operational Efficiencies Program | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Balance at December 31, 2018 | 0 | 0 | |||||||||||||
Restructuring costs, net | 21 | ||||||||||||||
Increase (Decrease) in Restructuring Reserve | (15) | ||||||||||||||
Balance at December 31, 2019 | 6 | 0 | 6 | 0 | |||||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||||||||
Total amount expected to be incurred | 24 | 24 | |||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 21 | 21 | |||||||||||||
Total amount remaining to be incurred | 3 | 3 | |||||||||||||
Facility-related costs (1) | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Restructuring costs, net | [5] | 17 | 20 | 4 | |||||||||||
Facility-related costs (1) | Operational Efficiencies Program | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Balance at December 31, 2018 | [6] | 0 | 0 | ||||||||||||
Restructuring costs, net | [6] | 16 | |||||||||||||
Increase (Decrease) in Restructuring Reserve | [6] | (11) | |||||||||||||
Balance at December 31, 2019 | [6] | 5 | 0 | 5 | 0 | ||||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||||||||
Total amount expected to be incurred | [7] | 46 | 46 | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | [7] | 16 | 16 | ||||||||||||
Total amount remaining to be incurred | [7] | 30 | 30 | ||||||||||||
Internal Use Software Impairment | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Restructuring costs, net | [8] | 0 | 10 | 0 | |||||||||||
Other Restructuring | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Restructuring costs, net | [9] | 1 | 0 | $ 1 | |||||||||||
Other Restructuring | Operational Efficiencies Program | |||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||
Balance at December 31, 2018 | $ 0 | 0 | |||||||||||||
Restructuring costs, net | 1 | ||||||||||||||
Increase (Decrease) in Restructuring Reserve | (1) | ||||||||||||||
Balance at December 31, 2019 | 0 | $ 0 | 0 | $ 0 | |||||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||||||||
Total amount expected to be incurred | 1 | 1 | |||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 1 | 1 | |||||||||||||
Total amount remaining to be incurred | $ 0 | $ 0 | |||||||||||||
[1] | The year ended December 31, 2019 includes $38 million of expense related to the Facility and Operational Efficiencies Program and $4 million of expense related to prior restructuring programs. The years ended December 31, 2018 and December 31, 2017 relate to prior restructuring programs. | ||||||||||||||
[2] | The year ended December 31, 2019 includes restructuring charges of $2 million at Realogy Franchise Group, $25 million at Realogy Brokerage Group, $3 million at Realogy Title Group, $2 million at Realogy Leads Group and $10 million at Corporate and Other. The year ended December 31, 2018 includes restructuring charges of $3 million at Realogy Franchise Group, $37 million at Realogy Brokerage Group, $4 million at Realogy Title Group and $3 million at Corporate and Other. The year ended December 31, 2017 includes restructuring charges of $1 million at Realogy Franchise Group, $9 million at Realogy Brokerage Group, $1 million at Realogy Title Group and $1 million at Corporate and Other. | ||||||||||||||
[3] | Impairment charges relate to the exit and sublease of certain real estate operating leases | ||||||||||||||
[4] | Personnel-related costs consist of severance costs provided to employees who have been terminated and duplicate payroll costs during transition. | ||||||||||||||
[5] | 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. | ||||||||||||||
[6] | Facility-related costs includes lease asset impairments expected to be incurred under the Facility and Operational Efficiencies Program. | ||||||||||||||
[7] | In addition, the Company incurred an additional $12 million related to lease asset impairments in connection with the Facility and Operational Efficiencies Program during the year ended December 31, 2019. | ||||||||||||||
[8] | Internal use software impairment relates to development costs capitalized for a project that was determined to not meet the Company's strategic goals when analyzed by the Company's new leadership team. | ||||||||||||||
[9] | Other restructuring costs consist of costs related to professional fees, consulting fees and other costs associated with restructuring activities which are primarily included in the Corporate and Other business segment. |
Stock-Based Compensation Introd
Stock-Based Compensation Introduction Narrative (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2019Performance_metricsshares | |
Shares available for future grant under the plan (in shares) | 0.6 |
Retirement Eligibility Age | 65 years |
Retirement Eligibility Age with Ten Years of Service | 55 years |
Retirement Eligibility Years Tenure | 10 years |
Retirement Eligibility Service Requirement | 1 year |
Maximum | |
Shares authorized for issuance under the plan (in shares) | 6 |
Restricted Stock Units | |
Award Vesting Period | 3 years |
Annual Vesting Percentage | 33.33% |
Performance Share Units | |
Award Vesting Period | 3 years |
Annual Vesting Percentage | 33.33% |
Number of performance metrics | 2 |
The first performance metric | Performance_metrics | 1 |
Performance Share Units | RTSR | Minimum | |
Award Vesting Rights, Percentage | 0.00% |
Performance Share Units | RTSR | Maximum | |
Award Vesting Rights, Percentage | 175.00% |
Performance Share Units | Cumulative Free Cash Flow | Minimum | |
Award Vesting Rights, Percentage | 0.00% |
Performance Share Units | Cumulative Free Cash Flow | Maximum | |
Award Vesting Rights, Percentage | 200.00% |
Options | |
Award Vesting Period | 4 years |
Annual Vesting Percentage | 25.00% |
Award Expiration Period | 10 years |
Stock-Based Compensation Incent
Stock-Based Compensation Incentive Equity Awards Activity - Summary of Share-Based Compensation Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)$ / sharesshares | ||
Restricted Stock Units | ||
Equity Instruments Other than Options, Number of Shares Roll Forward | ||
Outstanding at January 1, 2019 | shares | 2.2 | |
Granted | shares | 2.5 | |
Distributed/Exercised | shares | (1) | [1] |
Forfeited/Expired | shares | (0.3) | |
Outstanding at December 31, 2019 | shares | 3.4 | |
Equity Instruments Other than Options, Weighted Average Grant Date Fair Value Roll Forward | ||
Outstanding at January 1, 2019 | $ / shares | $ 27.37 | |
Granted | $ / shares | 13.41 | |
Distributed/Exercised | $ / shares | 28.17 | |
Forfeited/Expired | $ / shares | 18.81 | |
Outstanding at December 31, 2019 | $ / shares | $ 17.89 | |
Options, Weighted Average Exercise Price Roll Forward | ||
Fair Value of Shares Distributed in Period | $ | $ 27 | |
Performance Share Units | ||
Equity Instruments Other than Options, Number of Shares Roll Forward | ||
Outstanding at January 1, 2019 | shares | 1.7 | [2] |
Granted | shares | 0.9 | [2] |
Distributed/Exercised | shares | (0.2) | [2],[3] |
Forfeited/Expired | shares | (0.1) | [2] |
Outstanding at December 31, 2019 | shares | 2.3 | [2] |
Equity Instruments Other than Options, Weighted Average Grant Date Fair Value Roll Forward | ||
Outstanding at January 1, 2019 | $ / shares | $ 28.10 | |
Granted | $ / shares | 11.06 | |
Distributed/Exercised | $ / shares | 32.66 | |
Forfeited/Expired | $ / shares | 19.35 | |
Outstanding at December 31, 2019 | $ / shares | $ 19.16 | |
Options, Weighted Average Exercise Price Roll Forward | ||
Fair Value of Shares Distributed in Period | $ | $ 8 | |
Options | ||
Options, Number of Shares Roll Forward | ||
Outstanding at January 1, 2019 | shares | 3.7 | [4] |
Granted | shares | 0.8 | [4] |
Distributed/Exercised | shares | 0 | [4] |
Forfeited/Expired | shares | (0.4) | [4] |
Outstanding at December 31, 2019 | shares | 4.1 | [4],[5] |
Options, Weighted Average Exercise Price Roll Forward | ||
Outstanding at January 1, 2019 | $ / shares | $ 30.98 | |
Granted | $ / shares | 13.44 | |
Distributed/Exercised | $ / shares | 0 | |
Forfeited/Expired | $ / shares | 28.74 | |
Outstanding at December 31, 2019 | $ / shares | $ 27.50 | |
Intrinsic Value of Outstanding Options | $ | $ 0 | |
Weighted Average Remaining Contractual Life of Outstanding Options | 5 years 8 months 12 days | |
Exercisable Stock Options, Additional Disclosures | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 2.5 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 32.19 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 10 months 24 days | |
[1] | The total fair value of RSUs which were distributed during the year ended December 31, 2019 was $27 million. | |
[2] | The PSU amounts in the table are shown at the target amount of the award. | |
[3] | The total fair value of PSUs which were distributed during the year ended December 31, 2019 was $8 million. | |
[4] | As of December 31, 2019, 2.5 million of the 4.1 million outstanding stock options were exercisable with a weighted average exercise price of $32.19, an intrinsic value of zero and a weighted average remaining contractual life of 3.9 years. | |
[5] | Options outstanding at December 31, 2019 have an intrinsic value of zero and have a weighted average remaining contractual life of 5.7 years. |
Stock-Based Compensation Ince_2
Stock-Based Compensation Incentive Equity Awards Activity - Summary of Market Performance Units Valuation Assumptions (Details) - Performance Share Units - RTSR - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value | $ 7.82 | $ 25.45 | $ 27.98 | |
Weighted average correlation coefficient | 0.42 | 0.44 | 0.53 | |
Weighted average risk-free interest rate | 2.50% | 2.60% | 1.50% | |
Weighted average dividend yield | 0.00% | 0.00% | 0.00% | |
Realogy and comparable companies | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average expected volatility (a) | [1] | 34.80% | 29.80% | 29.00% |
S&P 400 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average expected volatility (a) | 13.50% | |||
XHB | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average expected volatility (a) | 17.90% | 18.40% | ||
[1] | Expected volatility is based on historical volatilities of the Company and select comparable companies. |
Stock-Based Compensation Ince_3
Stock-Based Compensation Incentive Equity Awards Activity - Summary of Stock Options Valuation Assumptions (Details) - Options - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value Assumptions | ||||
Weighted average grant date fair value | $ 3.40 | $ 7.12 | $ 8.61 | |
Weighted average expected volatility (a) | [1] | 31.40% | 28.50% | 30.70% |
Weighted average expected term (years) (b) | [2] | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Weighted average risk-free interest rate (c) | [3] | 2.50% | 2.70% | 2.00% |
Weighted average dividend yield | 2.70% | 1.40% | 1.20% | |
[1] | Expected volatility was based on historical volatilities of the Company and select comparable companies. | |||
[2] | The expected term of the options granted represents the period of time that options are expected to be outstanding and is based on the simplified method. | |||
[3] | The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of the grant, which corresponds to the expected term of the options. |
Stock-Based Compensation Expens
Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Unrecognized compensation cost | $ 35 | ||
Remaining weighted average period | 1 year 10 months 24 days | ||
Stock-based compensation expense | $ 28 | $ 37 | $ 47 |
Commitments And Contingencies L
Commitments And Contingencies Litigation and Tax Matters (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies - Litigation [Abstract] | ||
Guaranty Arrangement Percentage of Obligations Assumed by Realogy | 62.50% | |
Guaranty Arrangement Percentage of Obligations Assumed by Wyndham | 37.50% | |
Due to former parent | $ 18 | $ 21 |
Commitments And Contingencies E
Commitments And Contingencies Escrow and Trust Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Escrow and trust deposits | $ 475,000 | $ 426,000 |
Maximum | ||
Loss Contingencies [Line Items] | ||
Cash, FDIC Insured Amount | $ 250 |
Commitments And Contingencies P
Commitments And Contingencies Purchase Commitments and Minimum Licensing Fees (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitments | $ 73,000,000 |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2020 | 44,000,000 |
2021 | 24,000,000 |
2022 | 11,000,000 |
2023 | 9,000,000 |
2024 | 8,000,000 |
Thereafter | 217,000,000 |
Total purchase obligations | 313,000,000 |
Sotheby’s International Realty® | |
Long-term Purchase Commitment [Line Items] | |
Licensing fees | 2 |
Meredith Corporation | Minimum | |
Long-term Purchase Commitment [Line Items] | |
Licensing fees | 0.5 |
Meredith Corporation | Maximum | |
Long-term Purchase Commitment [Line Items] | |
Licensing fees | $ 4 |
Commitments And Contingencies O
Commitments And Contingencies Other Guarantees, Insurance and Self-Insurance (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Insurance liabilities | $ 25,000 | $ 24,000 |
Self insurance accruals | 15,000 | $ 15,000 |
Maximum | ||
Loss Contingencies [Line Items] | ||
Guarantees, gross | 10,000 | |
Fidelity Insurance | ||
Loss Contingencies [Line Items] | ||
Insurance deductible | 750 | |
Fidelity Insurance | Maximum | ||
Loss Contingencies [Line Items] | ||
Insurance liabilities | 30,000 | |
Realogy Brokerage Group | Errors and Omissions Insurance | ||
Loss Contingencies [Line Items] | ||
Insurance liabilities | 15,000 | |
Insurance deductible | 1,000 | |
Realogy Brokerage Group | Errors and Omissions Insurance including additional Realogy Group Coverage | ||
Loss Contingencies [Line Items] | ||
Insurance deductible | 1,000 | |
Realogy Brokerage Group | Errors and Omissions Insurance including additional Realogy Group Coverage | Maximum | ||
Loss Contingencies [Line Items] | ||
Insurance liabilities | 60,000 | |
Realogy Group | Errors and Omissions Insurance | ||
Loss Contingencies [Line Items] | ||
Insurance deductible | 2,500 | |
Realogy Group | Errors and Omissions Insurance | Maximum | ||
Loss Contingencies [Line Items] | ||
Insurance liabilities | 45,000 | |
Realogy Title Group | Maximum | ||
Loss Contingencies [Line Items] | ||
Underwriter of title insurance policies, value, per policy | 1,500 | |
Realogy Title Group | Minimum | ||
Loss Contingencies [Line Items] | ||
Underwriter of title insurance policy, reinsurance policy obtained from national underwriter, value per policy | $ 1,500 |
Statement of Equity (Deficit) (
Statement of Equity (Deficit) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |||
Statement of Equity Table [Line Items] | ||||||||
Balance | $ 2,315 | $ 2,315 | $ 2,622 | $ 2,469 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (22) | $ (22) | ||||||
Net (loss) income | $ (112) | (141) | (185) | 140 | 434 | |||
Other comprehensive income (loss) | (4) | (6) | 3 | |||||
Stock Repurchased and Retired During Period, Value | (20) | (402) | (280) | |||||
Exercise of stock options | 1 | 8 | ||||||
Repurchase of Common Stock | 24 | 30 | 41 | |||||
Dividends of Common Stock, Cash | (31) | (45) | (49) | |||||
Dividends Total Equity | (34) | (48) | (53) | |||||
Balance | $ 2,140 | 2,140 | 2,096 | 2,315 | 2,622 | |||
Common Stock | ||||||||
Statement of Equity Table [Line Items] | ||||||||
Balance | 1 | 1 | 1 | 1 | ||||
Balance | 1 | 1 | 1 | |||||
Additional Paid-In Capital | ||||||||
Statement of Equity Table [Line Items] | ||||||||
Balance | 4,869 | 4,869 | 5,285 | 5,565 | ||||
Stock Repurchased and Retired During Period, Value | (20) | (402) | (280) | |||||
Exercise of stock options | 1 | 8 | ||||||
Repurchase of Common Stock | 24 | 30 | 41 | |||||
Balance | 4,842 | 4,869 | 5,285 | |||||
Accumulated Deficit | ||||||||
Statement of Equity Table [Line Items] | ||||||||
Balance | (2,507) | (2,507) | (2,631) | (3,062) | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (13) | (13) | ||||||
Net (loss) income | (188) | 137 | 431 | |||||
Balance | (2,695) | (2,507) | (2,631) | |||||
Accumulated Other Comprehensive Loss | ||||||||
Statement of Equity Table [Line Items] | ||||||||
Balance | (52) | (52) | (37) | (40) | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (9) | $ (9) | ||||||
Other comprehensive income (loss) | (4) | [1] | (6) | 3 | [1] | |||
Balance | (56) | (52) | (37) | |||||
Non- controlling Interests | ||||||||
Statement of Equity Table [Line Items] | ||||||||
Balance | 4 | 4 | 4 | 5 | ||||
Net (loss) income | 3 | 3 | 3 | |||||
Noncontrolling Interest, Dividends | (3) | (3) | (4) | |||||
Balance | 4 | 4 | 4 | |||||
Realogy Group | Common Stock | ||||||||
Statement of Equity Table [Line Items] | ||||||||
Balance | 0 | 0 | 0 | 0 | ||||
Balance | 0 | 0 | 0 | |||||
Realogy Group | Additional Paid-In Capital | ||||||||
Statement of Equity Table [Line Items] | ||||||||
Balance | $ 4,870 | 4,870 | 5,286 | 5,566 | ||||
Balance | $ 4,843 | $ 4,870 | $ 5,286 | |||||
[1] | As of December 31, 2019, the Company does not have any after-tax components of accumulated other comprehensive loss attributable to noncontrolling interests. |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 23, 2017 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||
Net (loss) income from continuing operations | $ (136) | $ (118) | $ 146 | $ 428 | ||||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 3 | 3 | 3 | |||||||||||||||||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent, Total | $ 17 | $ (121) | $ 68 | $ (85) | $ (19) | $ 93 | $ 118 | $ (49) | (121) | 143 | 425 | |||||||||||
Net (loss) income from discontinued operations | (62) | 8 | 1 | (14) | (3) | 10 | 5 | (18) | (67) | (6) | 6 | |||||||||||
Net (loss) income attributable to Realogy Holdings shareholders | $ (45) | $ (113) | $ 69 | $ (99) | $ (22) | $ 103 | $ 123 | $ (67) | $ (143) | $ (188) | $ 137 | $ 431 | ||||||||||
Basic | 114.2 | 124 | 136.7 | |||||||||||||||||||
Dilutive effect of stock-based compensation (a) (b) | [1],[2] | 0 | 1.3 | 1.7 | ||||||||||||||||||
Diluted | 114.2 | 125.3 | 138.4 | |||||||||||||||||||
Basic (loss) earnings per share from continuing operations | $ 0.15 | [3] | $ (1.06) | [3] | $ 0.59 | [3] | $ (0.75) | [3] | $ (0.16) | [4] | $ 0.76 | [4] | $ 0.93 | [4] | $ (0.38) | [4] | $ (1.06) | $ 1.15 | $ 3.11 | |||
Basic (loss) earnings per share from discontinued operations | (0.54) | [3] | 0.07 | [3] | 0.01 | [3] | (0.12) | [3] | (0.03) | [4] | 0.08 | [4] | 0.04 | [4] | (0.13) | [4] | (0.59) | (0.05) | 0.04 | |||
Basic (loss) earnings per share | (0.39) | [3] | (0.99) | [3] | 0.60 | [3] | (0.87) | [3] | (0.19) | [4] | 0.84 | [4] | 0.97 | [4] | (0.51) | [4] | $ (1.25) | (1.65) | 1.10 | 3.15 | ||
Diluted (loss) earnings per share from continuing operations | 0.15 | [3] | (1.06) | [3] | 0.59 | [3] | (0.75) | [3] | (0.16) | [4] | 0.75 | [4] | 0.92 | [4] | (0.38) | [4] | (1.06) | 1.14 | 3.07 | |||
Diluted (loss) earnings per share from discontinued operations | (0.54) | [3] | 0.07 | [3] | 0.01 | [3] | (0.12) | [3] | (0.03) | [4] | 0.08 | [4] | 0.04 | [4] | (0.13) | [4] | (0.59) | (0.05) | 0.04 | |||
Diluted (loss) earnings per share | $ (0.39) | [3] | $ (0.99) | [3] | $ 0.60 | [3] | $ (0.87) | [3] | $ (0.19) | [4] | $ 0.83 | [4] | $ 0.96 | [4] | $ (0.51) | [4] | $ (1.25) | $ (1.65) | $ 1.09 | $ 3.11 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6.9 | 5.3 | ||||||||||||||||||||
Stock Repurchases [Line Items] | ||||||||||||||||||||||
Stock Repurchased and Retired During Period, Shares | 1.2 | 17.9 | 9.4 | |||||||||||||||||||
Stock Repurchased and Retired During Period, Value | $ 20 | $ 402 | $ 280 | |||||||||||||||||||
Stock Repurchased and Retired During Period, Weighted Average Market Price | $ 17.21 | $ 22.47 | $ 29.38 | |||||||||||||||||||
Settlement Date [Member] | ||||||||||||||||||||||
Stock Repurchases [Line Items] | ||||||||||||||||||||||
Stock Repurchased and Retired During Period, Value | $ 276 | |||||||||||||||||||||
Maximum | ||||||||||||||||||||||
Stock Repurchases [Line Items] | ||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 825 | |||||||||||||||||||||
[1] | The Company was in a net loss position for the year ended December 31, 2019 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 (see Note 14, "Stock-Based Compensation", for outstanding equity awards as of December 31, 2019). | |||||||||||||||||||||
[2] | The years ended December 31, 2018 and 2017, respectively, exclude 6.9 million and 5.3 million shares of common stock issuable for incentive equity awards which includes performance share units based on the achievement of target amounts, that are anti-dilutive to the diluted earnings per share computation. | |||||||||||||||||||||
[3] | Basic and diluted EPS amounts in each quarter are computed using the weighted-average number of shares outstanding during that quarter, while basic and diluted EPS for the full year is computed using the weighted-average number of shares outstanding during the year. Therefore, the sum of the four quarters’ basic or diluted EPS may not equal the full year basic or diluted EPS (see Note 17 "Earnings (Loss) Per Share" for further information). (d) As a result of the pending sale of Cartus Relocation Services, the Company met held for sale requirements under ASC 360 and discontinued operations under ASC 205 in the fourth quarter of 2019. Therefore, amounts presented in the Company's Form 10-Qs for the periods prior to the fourth quarter of 2019 did not reflect discontinued operations, but have been adjusted to reflect discontinued operations in the tables above. | |||||||||||||||||||||
[4] | Basic and diluted EPS amounts in each quarter are computed using the weighted-average number of shares outstanding during that quarter, while basic and diluted EPS for the full year is computed using the weighted-average number of shares outstanding during the year. Therefore, the sum of the four quarters’ basic or diluted EPS may not equal the full year basic or diluted EPS. (d) As a result of the pending sale of Cartus Relocation Services, the Company met held for sale requirements under ASC 360 and discontinued operations under ASC 205 in the fourth quarter of 2019. Therefore, amounts presented in the Company's Form 10-Qs for the periods prior to the fourth quarter of 2019 did not reflect discontinued operations, but have been adjusted to reflect discontinued operations in the tables above. |
Interest Rate, Credit, and Mark
Interest Rate, Credit, and Market Risk Exposures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Principal value of variable rate long term debt | $ 1,965 | ||
Realogy Brokerage Group | NEW YORK | |||
Concentration risk, geographic area, revenue | 22.00% | 20.00% | 22.00% |
Realogy Brokerage Group | CALIFORNIA | |||
Concentration risk, geographic area, revenue | 25.00% | 27.00% | 27.00% |
Realogy Brokerage Group | FLORIDA | |||
Concentration risk, geographic area, revenue | 10.00% | 9.00% | 9.00% |
Minimum | |||
Fixed interest rate of swaps | 2.07% | ||
Maximum | |||
Fixed interest rate of swaps | 3.11% | ||
Interest rate swap contracts | |||
Derivative, Notional Amount | $ 1,600 |
Derivative Instruments (Details
Derivative Instruments (Details) - Interest rate swap contracts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 1,600 | ||
Not Designated as Hedging Instruments | Interest expense | |||
Derivative [Line Items] | |||
(Gain) or Loss Recognized on Derivatives | 39 | $ 4 | $ (4) |
Other non-current assets | Not Designated as Hedging Instruments | |||
Derivative [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 0 | 6 | |
Other current and non-current liabilities | Not Designated as Hedging Instruments | |||
Derivative [Line Items] | |||
Fair value of interest rate derivative liabilities | 47 | $ 16 | |
August 2015 | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 600 | ||
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 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Liabilities Rollforward [Roll Forward] | ||
Fair value of contingent consideration at December 31, 2018 | $ 10 | |
Additions: contingent consideration related to acquisitions completed during the period | 0 | |
Reductions: payments of contingent consideration | (4) | |
Changes in fair value (reflected in general and administrative expenses) | (2) | |
Fair value of contingent consideration at December 31, 2019 | 4 | |
Deferred compensation plan assets (included in other non-current assets) | Fair Value Measurements Recurring Member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (included in other non-current assets) | 2 | $ 2 |
Deferred compensation plan assets (included in other non-current assets) | Fair Value Measurements Recurring Member | 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) | 2 | 2 |
Deferred compensation plan assets (included in other non-current assets) | Fair Value Measurements Recurring Member | 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 |
Deferred compensation plan assets (included in other non-current assets) | Fair Value Measurements Recurring Member | 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 |
Interest rate swap contracts | Fair Value Measurements Recurring Member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps (included in other non-current assets) | 6 | |
Interest rate swaps (included in other current and non-current liabilities) | 47 | 16 |
Interest rate swap contracts | Fair Value Measurements Recurring Member | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps (included in other non-current assets) | 0 | |
Interest rate swaps (included in other current and non-current liabilities) | 0 | 0 |
Interest rate swap contracts | Fair Value Measurements Recurring Member | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps (included in other non-current assets) | 6 | |
Interest rate swaps (included in other current and non-current liabilities) | 47 | 16 |
Interest rate swap contracts | Fair Value Measurements Recurring Member | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps (included in other non-current assets) | 0 | |
Interest rate swaps (included in other current and non-current liabilities) | 0 | 0 |
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) | Fair Value Measurements Recurring Member | ||
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) | 4 | 10 |
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) | Fair Value Measurements Recurring Member | 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 |
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) | Fair Value Measurements Recurring Member | 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 |
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities) | Fair Value Measurements Recurring Member | 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) | $ 4 | $ 10 |
Fair Value Indebtedness Table (
Fair Value Indebtedness Table (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Feb. 28, 2018 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term Debt, Gross | $ 3,472,000,000 | |||||
Secured Debt | Term Loan B | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term Debt, Gross | 1,058,000,000 | [1] | $ 1,069,000,000 | $ 1,080,000,000 | ||
Fair value of long-term debt | [2] | 1,048,000,000 | 1,010,000,000 | |||
Secured Debt | Term Loan A | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term Debt, Gross | 717,000,000 | 736,000,000 | $ 750,000,000 | |||
Fair value of long-term debt | [2] | 705,000,000 | 707,000,000 | |||
Senior Notes | 4.50% Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term Debt, Gross | 0 | $ 450,000,000 | 450,000,000 | |||
Fair value of long-term debt | [2] | 0 | 447,000,000 | |||
Senior Notes | 5.25% Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term Debt, Gross | 550,000,000 | 550,000,000 | ||||
Fair value of long-term debt | [2] | 557,000,000 | 524,000,000 | |||
Senior Notes | 4.875% Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term Debt, Gross | 407,000,000 | 500,000,000 | ||||
Fair value of long-term debt | [2] | 401,000,000 | 434,000,000 | |||
Senior Notes | 9.375% Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term Debt, Gross | 550,000,000 | $ 550 | 0 | |||
Fair value of long-term debt | [2] | 572,000,000 | 0 | |||
Line of Credit | Revolving Credit Facility | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Line of credit facility outstanding amount | 190,000,000 | [1],[3] | 270,000,000 | |||
Line of credit facility fair value | [2] | $ 190,000,000 | $ 270,000,000 | |||
[1] | The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B 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%). | |||||
[2] | The fair value of the Company's indebtedness is categorized as Level II. | |||||
[3] | Interest rates with respect to revolving loans under the Senior Secured Credit Facility at December 31, 2019 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 2.25% and the ABR margin was 1.25% for the three months ended December 31, 2019. |
Reconciliation of Revenue from
Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net revenues | $ 1,330 | $ 1,550 | $ 1,664 | $ 1,054 | $ 1,285 | $ 1,591 | $ 1,740 | $ 1,166 | $ 5,598 | [1],[2] | $ 5,782 | [1],[2] | $ 5,810 | [1],[2],[3] | |||||
Realogy Franchise Group | |||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net revenues | 190 | 216 | 234 | 163 | 186 | 221 | 237 | 176 | 803 | [1],[2] | 820 | [1],[2] | 830 | [1],[2],[3] | |||||
Realogy Franchise Group | Royalties and Marketing Fees | |||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net revenues | (293) | (306) | (311) | ||||||||||||||||
Realogy Brokerage Group | |||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net revenues | 1,040 | 1,222 | 1,331 | 816 | 1,014 | 1,268 | 1,408 | 917 | 4,409 | [1],[2] | 4,607 | [1],[2] | 4,643 | [1],[2],[3] | |||||
Realogy Title Group | |||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net revenues | 152 | 170 | 160 | 114 | 136 | 162 | 162 | 120 | 596 | [1],[2] | 580 | [1],[2] | 570 | [1],[2],[3] | |||||
Realogy Leads Group | |||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net revenues | 17 | 24 | 26 | 16 | 17 | 23 | 25 | 16 | 83 | [1],[2] | 81 | [1],[2] | 78 | [1],[2] | |||||
Realogy Leads Group | Referral and Relocation Fees | |||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net revenues | 18 | 18 | 18 | ||||||||||||||||
Corporate and Other | |||||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||||
Net revenues | $ (69) | $ (82) | $ (87) | $ (55) | [4] | $ (68) | [5] | $ (83) | [5] | $ (92) | [5] | $ (63) | [5] | $ (293) | [1],[2],[6] | $ (306) | [1],[2],[6] | $ (311) | [1],[2],[3],[6] |
[1] | Revenues for Realo gy Leads Group include intercompany referral commissions paid by Realogy Brokerage Group of $18 million for each of the years ended December 31, 2019, 2018 and 2017. Such amounts are recorded as contra-revenues by Realogy Brokerage Group. There are no other material intersegment transactions. | ||||||||||||||||||
[2] | Transactions between segments are eliminated in consolidation. Revenues for Realogy Franchise Group include intercompany royalties and marketing fees paid by Realogy Brokerage Group of $293 million, $306 million and $311 million for the years ended December 31, 2019, 2018 and 2017, respectively. Such amounts are eliminated through the Corporate and Other line. | ||||||||||||||||||
[3] | Amounts for the year ended December 31, 2017 have not been adjusted under the modified retrospective method. | ||||||||||||||||||
[4] | Represents the elimination of transactions primarily between Realogy Franchise Group and Realogy Brokerage Group. | ||||||||||||||||||
[5] | Represents the elimination of transactions primarily between Realogy Franchise Group and Realogy Brokerage Group. | ||||||||||||||||||
[6] | Includes the elimination of transactions between segments. |
Operating EBITDA (Details)
Operating EBITDA (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2008 | Dec. 31, 2007 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net (loss) income attributable to Realogy Holdings and Realogy Group | $ (45,000,000) | $ (113,000,000) | $ 69,000,000 | $ (99,000,000) | $ (22,000,000) | $ 103,000,000 | $ 123,000,000 | $ (67,000,000) | $ (143,000,000) | $ (188,000,000) | $ 137,000,000 | $ 431,000,000 | ||||||
Net (loss) income from discontinued operations | (67,000,000) | (6,000,000) | 6,000,000 | |||||||||||||||
Income tax (benefit) expense from continuing operations | (23,000,000) | (22,000,000) | (22,000,000) | [1] | 67,000,000 | [1] | (66,000,000) | [1] | ||||||||||
(Loss) income from continuing operations before income taxes | (143,000,000) | 210,000,000 | 359,000,000 | |||||||||||||||
Depreciation and amortization | 169,000,000 | [2] | 164,000,000 | 166,000,000 | [2] | |||||||||||||
Depreciation and amortization, adjusted for Amortization of Intangible Assets related to GRA Acquisition | [2] | 166,000,000 | 169,000,000 | |||||||||||||||
Interest expense, net | 249,000,000 | 189,000,000 | 157,000,000 | |||||||||||||||
Restructuring costs, net | 13,000,000 | 11,000,000 | 9,000,000 | 9,000,000 | $ 11,000,000 | $ 9,000,000 | $ 5,000,000 | 22,000,000 | 42,000,000 | [3],[4] | 47,000,000 | [3],[4] | 12,000,000 | [3],[4] | ||||
Impairments | 240,000,000 | $ 243,000,000 | 249,000,000 | [5] | 0 | 0 | ||||||||||||
Former parent legacy cost (benefit), net | [6] | 1,000,000 | 4,000,000 | (10,000,000) | ||||||||||||||
(Gain) loss on the early extinguishment of debt | (10,000,000) | 5,000,000 | $ 7,000,000 | (5,000,000) | [6] | 7,000,000 | [6] | 5,000,000 | [6] | |||||||||
Operating EBITDA | 562,000,000 | 623,000,000 | 692,000,000 | |||||||||||||||
Income (Loss) from Equity Method Investments | 18,000,000 | (4,000,000) | 18,000,000 | |||||||||||||||
Impairment of Goodwill | $ 1,153,000,000 | $ 489,000,000 | 237,000,000 | [7] | ||||||||||||||
Goodwill, Impairment Loss, Tax | 57,000,000 | |||||||||||||||||
Goodwill, Impairment Loss, net of taxes | 180,000,000 | |||||||||||||||||
Other Asset Impairment Charges | $ 6,000,000 | $ 3,000,000 | $ 2,000,000 | $ 1,000,000 | 12,000,000 | |||||||||||||
Amortization of Intangible Assets related to GRA Acquisition | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Income (Loss) from Equity Method Investments | (2,000,000) | (3,000,000) | ||||||||||||||||
Realogy Franchise Group | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Depreciation and amortization | 77,000,000 | 77,000,000 | 79,000,000 | |||||||||||||||
Restructuring costs, net | 2,000,000 | 3,000,000 | 1,000,000 | |||||||||||||||
Operating EBITDA | 535,000,000 | 564,000,000 | 560,000,000 | |||||||||||||||
Impairment of Goodwill | [7] | 0 | ||||||||||||||||
Realogy Brokerage Group | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Depreciation and amortization | 54,000,000 | 51,000,000 | 50,000,000 | |||||||||||||||
Restructuring costs, net | 25,000,000 | 37,000,000 | 9,000,000 | |||||||||||||||
Operating EBITDA | [8] | 4,000,000 | 44,000,000 | 135,000,000 | ||||||||||||||
Impairment of Goodwill | [7] | 237,000,000 | ||||||||||||||||
Goodwill, Impairment Loss, net of taxes | 180 | |||||||||||||||||
Realogy Brokerage Group | PHH Home Loans | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Income (Loss) from Equity Method Investments | (22,000,000) | |||||||||||||||||
Realogy Title Group | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Depreciation and amortization | 13,000,000 | 13,000,000 | 16,000,000 | |||||||||||||||
Restructuring costs, net | 3,000,000 | 4,000,000 | 1,000,000 | |||||||||||||||
Operating EBITDA | 68,000,000 | 49,000,000 | 59,000,000 | |||||||||||||||
Income (Loss) from Equity Method Investments | 4 | |||||||||||||||||
Impairment of Goodwill | [7] | 0 | ||||||||||||||||
Realogy Title Group | Amortization of Intangible Assets related to GRA Acquisition | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Income (Loss) from Equity Method Investments | 3 | |||||||||||||||||
Realogy Leads Group | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Depreciation and amortization | 1,000,000 | 2,000,000 | 1,000,000 | |||||||||||||||
Restructuring costs, net | 2,000,000 | |||||||||||||||||
Operating EBITDA | 53,000,000 | 51,000,000 | 45,000,000 | |||||||||||||||
Impairment of Goodwill | [7] | 0 | ||||||||||||||||
Corporate and Other | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Depreciation and amortization | 24,000,000 | 21,000,000 | 20,000,000 | |||||||||||||||
Restructuring costs, net | 10,000,000 | 3,000,000 | 1,000,000 | |||||||||||||||
Operating EBITDA | [6],[9] | $ (98,000,000) | $ (85,000,000) | $ (107,000,000) | ||||||||||||||
[1] | Income tax benefit for the year ended December 31, 2017 reflects the impact of the 2017 Tax Act. | |||||||||||||||||
[2] | Depreciation and amortization for the years ended December 31, 2018 and 2017 includes $2 million and $3 million, respectively, of amortization expense related to Guaranteed Rate Affinity's purchase accounting included in the "Equity in (earnings) losses of unconsolidated entities" line on the Consolidated Statement of Operations. | |||||||||||||||||
[3] | The year ended December 31, 2019 includes $38 million of expense related to the Facility and Operational Efficiencies Program and $4 million of expense related to prior restructuring programs. The years ended December 31, 2018 and December 31, 2017 relate to prior restructuring programs. | |||||||||||||||||
[4] | The year ended December 31, 2019 includes restructuring charges of $2 million at Realogy Franchise Group, $25 million at Realogy Brokerage Group, $3 million at Realogy Title Group, $2 million at Realogy Leads Group and $10 million at Corporate and Other. The year ended December 31, 2018 includes restructuring charges of $3 million at Realogy Franchise Group, $37 million at Realogy Brokerage Group, $4 million at Realogy Title Group and $3 million at Corporate and Other. The year ended December 31, 2017 includes restructuring charges of $1 million at Realogy Franchise Group, $9 million at Realogy Brokerage Group, $1 million at Realogy Title Group and $1 million at Corporate and Other. | |||||||||||||||||
[5] | Impairments for the year ended December 31, 2019 includes a goodwill impairment charge of $237 million at Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 2, "Summary of Significant Accounting Policies", for additional information). In addition, other impairment charges, primarily related to lease asset impairments, of $12 million were incurred for the year ended December 31, 2019. | |||||||||||||||||
[6] | Former parent legacy items and (Gain) loss on the early extinguishment of debt are recorded in Corporate and Other. | |||||||||||||||||
[7] | The Company recognized a goodwill impairment charge of $237 million during the third quarter of 2019 related to Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 20, "Selected Quarterly Financial Data", for additional information). | |||||||||||||||||
[8] | Includes $22 million of equity earnings from PHH Home Loans for the year ended December 31, 2017. | |||||||||||||||||
[9] | Includes the elimination of transactions between segments. |
Reconciliation of Depreciation
Reconciliation of Depreciation and Amortization from Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Depreciation and amortization | $ 169 | [1] | $ 164 | $ 166 | [1] |
Realogy Franchise Group | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Depreciation and amortization | 77 | 77 | 79 | ||
Realogy Brokerage Group | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Depreciation and amortization | 54 | 51 | 50 | ||
Realogy Title Group | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Depreciation and amortization | 13 | 13 | 16 | ||
Realogy Leads Group | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Depreciation and amortization | 1 | 2 | 1 | ||
Corporate and Other | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Depreciation and amortization | $ 24 | $ 21 | $ 20 | ||
[1] | Depreciation and amortization for the years ended December 31, 2018 and 2017 includes $2 million and $3 million, respectively, of amortization expense related to Guaranteed Rate Affinity's purchase accounting included in the "Equity in (earnings) losses of unconsolidated entities" line on the Consolidated Statement of Operations. |
Reconciliation of Assets from S
Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | [1] | Dec. 31, 2018 | ||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||
Total assets | $ 7,543 | $ 7,660 | $ 7,842 | $ 7,290 | [1] | ||
Total assets classified as held for sale | 750 | [2] | 799 | ||||
Realogy Franchise Group | |||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||
Total assets | 4,317 | 4,388 | |||||
Realogy Brokerage Group | |||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||
Total assets | 1,448 | 1,228 | |||||
Realogy Title Group | |||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||
Total assets | 576 | 492 | |||||
Realogy Leads Group | |||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||
Total assets | 192 | 193 | |||||
Corporate and Other | |||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||
Total assets | $ 260 | $ 190 | |||||
[1] | The $552 million adjustment to Total assets due to the adoption of the new leasing standard consists of $414 million at Realogy Brokerage Group, $52 million at Corporate and Other, $46 million at Realogy Title Group and $40 million of assets held for sale related to the pending sale of Cartus' Relocation Services business. | ||||||
[2] | The assets and liabilities of Cartus Relocation Services are classified as current on the December 31, 2019 balance sheet because it is probable that the sale will occur and proceeds will be collected within one year. |
Reconciliation of Capital Expen
Reconciliation of Capital Expenditures from Segment to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 108 | $ 92 | $ 90 |
Realogy Franchise Group | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 19 | 10 | 9 |
Realogy Brokerage Group | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 56 | 44 | 44 |
Realogy Title Group | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 10 | 11 | 13 |
Realogy Leads Group | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 2 | 0 | 2 |
Corporate and Other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 21 | $ 27 | $ 22 |
Selected Quarterly Financial _4
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2008 | Dec. 31, 2007 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||
Net revenues | $ 1,330,000,000 | $ 1,550,000,000 | $ 1,664,000,000 | $ 1,054,000,000 | $ 1,285,000,000 | $ 1,591,000,000 | $ 1,740,000,000 | $ 1,166,000,000 | $ 5,598,000,000 | [1],[2] | $ 5,782,000,000 | [1],[2] | $ 5,810,000,000 | [1],[2],[3] | ||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||
(Loss) income from continuing operations before income taxes, equity in earnings and noncontrolling interests (b) | 15,000,000 | [4] | (150,000,000) | [4] | 95,000,000 | [4] | (118,000,000) | [4] | (22,000,000) | [5] | 130,000,000 | [5] | 167,000,000 | [5] | (58,000,000) | [5] | $ (173,000,000) | (158,000,000) | 217,000,000 | 344,000,000 | ||||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 17,000,000 | (121,000,000) | 68,000,000 | (85,000,000) | (19,000,000) | 93,000,000 | 118,000,000 | (49,000,000) | (121,000,000) | 143,000,000 | 425,000,000 | |||||||||||||||
Net (loss) income from discontinued operations | (62,000,000) | 8,000,000 | 1,000,000 | (14,000,000) | (3,000,000) | 10,000,000 | 5,000,000 | (18,000,000) | (67,000,000) | (6,000,000) | 6,000,000 | |||||||||||||||
Net (loss) income attributable to Realogy Holdings and Realogy Group | $ (45,000,000) | $ (113,000,000) | $ 69,000,000 | $ (99,000,000) | $ (22,000,000) | $ 103,000,000 | $ 123,000,000 | $ (67,000,000) | $ (143,000,000) | $ (188,000,000) | $ 137,000,000 | $ 431,000,000 | ||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||
Basic (loss) earnings per share from continuing operations | $ 0.15 | [6] | $ (1.06) | [6] | $ 0.59 | [6] | $ (0.75) | [6] | $ (0.16) | [7] | $ 0.76 | [7] | $ 0.93 | [7] | $ (0.38) | [7] | $ (1.06) | $ 1.15 | $ 3.11 | |||||||
Basic (loss) earnings per share from discontinued operations | (0.54) | [6] | 0.07 | [6] | 0.01 | [6] | (0.12) | [6] | (0.03) | [7] | 0.08 | [7] | 0.04 | [7] | (0.13) | [7] | (0.59) | (0.05) | 0.04 | |||||||
Basic (loss) earnings per share | (0.39) | [6] | (0.99) | [6] | 0.60 | [6] | (0.87) | [6] | (0.19) | [7] | 0.84 | [7] | 0.97 | [7] | (0.51) | [7] | $ (1.25) | (1.65) | 1.10 | 3.15 | ||||||
Diluted (loss) earnings per share from continuing operations | 0.15 | [6] | (1.06) | [6] | 0.59 | [6] | (0.75) | [6] | (0.16) | [7] | 0.75 | [7] | 0.92 | [7] | (0.38) | [7] | (1.06) | 1.14 | 3.07 | |||||||
Diluted (loss) earnings per share from discontinued operations | (0.54) | [6] | 0.07 | [6] | 0.01 | [6] | (0.12) | [6] | (0.03) | [7] | 0.08 | [7] | 0.04 | [7] | (0.13) | [7] | (0.59) | (0.05) | 0.04 | |||||||
Diluted (loss) earnings per share | $ (0.39) | [6] | $ (0.99) | [6] | $ 0.60 | [6] | $ (0.87) | [6] | $ (0.19) | [7] | $ 0.83 | [7] | $ 0.96 | [7] | $ (0.51) | [7] | $ (1.25) | $ (1.65) | $ 1.09 | $ 3.11 | ||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||||||
Restructuring costs, net | $ 13,000,000 | $ 11,000,000 | $ 9,000,000 | $ 9,000,000 | $ 11,000,000 | $ 9,000,000 | $ 5,000,000 | $ 22,000,000 | $ 42,000,000 | [8],[9] | $ 47,000,000 | [8],[9] | $ 12,000,000 | [8],[9] | ||||||||||||
Former parent legacy costs (benefits), net | 1,000,000 | 4,000,000 | ||||||||||||||||||||||||
(Gain) loss on the early extinguishment of debt | (10,000,000) | 5,000,000 | 7,000,000 | (5,000,000) | [10] | 7,000,000 | [10] | 5,000,000 | [10] | |||||||||||||||||
Impairment of Goodwill | $ 1,153,000,000 | $ 489,000,000 | 237,000,000 | [11] | ||||||||||||||||||||||
Goodwill, Impairment Loss, net of taxes | 180,000,000 | |||||||||||||||||||||||||
Goodwill, Impairment Loss, Tax | 57,000,000 | |||||||||||||||||||||||||
Other Asset Impairment Charges | 6,000,000 | 3,000,000 | 2,000,000 | 1,000,000 | 12,000,000 | |||||||||||||||||||||
Realogy Franchise Group | ||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||
Net revenues | 190,000,000 | 216,000,000 | 234,000,000 | 163,000,000 | 186,000,000 | 221,000,000 | 237,000,000 | 176,000,000 | 803,000,000 | [1],[2] | 820,000,000 | [1],[2] | 830,000,000 | [1],[2],[3] | ||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||
(Loss) income from continuing operations before income taxes, equity in earnings and noncontrolling interests (b) | 108,000,000 | [4] | 134,000,000 | [4] | 142,000,000 | [4] | 71,000,000 | [4] | 107,000,000 | [5] | 141,000,000 | [5] | 152,000,000 | [5] | 85,000,000 | [5] | ||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||||||
Restructuring costs, net | 2,000,000 | 3,000,000 | 1,000,000 | |||||||||||||||||||||||
Impairment of Goodwill | [11] | 0 | ||||||||||||||||||||||||
Realogy Brokerage Group | ||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||
Net revenues | 1,040,000,000 | 1,222,000,000 | 1,331,000,000 | 816,000,000 | 1,014,000,000 | 1,268,000,000 | 1,408,000,000 | 917,000,000 | 4,409,000,000 | [1],[2] | 4,607,000,000 | [1],[2] | 4,643,000,000 | [1],[2],[3] | ||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||
(Loss) income from continuing operations before income taxes, equity in earnings and noncontrolling interests (b) | (38,000,000) | [4] | (231,000,000) | [4] | 25,000,000 | [4] | (80,000,000) | [4] | (37,000,000) | [5] | 22,000,000 | [5] | 45,000,000 | [5] | (76,000,000) | [5] | ||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||||||
Restructuring costs, net | 25,000,000 | 37,000,000 | 9,000,000 | |||||||||||||||||||||||
Impairment of Goodwill | [11] | 237,000,000 | ||||||||||||||||||||||||
Goodwill, Impairment Loss, net of taxes | 180 | |||||||||||||||||||||||||
Realogy Title Group | ||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||
Net revenues | 152,000,000 | 170,000,000 | 160,000,000 | 114,000,000 | 136,000,000 | 162,000,000 | 162,000,000 | 120,000,000 | 596,000,000 | [1],[2] | 580,000,000 | [1],[2] | 570,000,000 | [1],[2],[3] | ||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||
(Loss) income from continuing operations before income taxes, equity in earnings and noncontrolling interests (b) | 7,000,000 | [4] | 21,000,000 | [4] | 22,000,000 | [4] | (13,000,000) | [4] | 1,000,000 | [5] | 18,000,000 | [5] | 26,000,000 | [5] | (8,000,000) | [5] | ||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||||||
Restructuring costs, net | 3,000,000 | 4,000,000 | 1,000,000 | |||||||||||||||||||||||
Impairment of Goodwill | [11] | 0 | ||||||||||||||||||||||||
Realogy Leads Group | ||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||
Net revenues | 17,000,000 | 24,000,000 | 26,000,000 | 16,000,000 | 17,000,000 | 23,000,000 | 25,000,000 | 16,000,000 | 83,000,000 | [1],[2] | 81,000,000 | [1],[2] | 78,000,000 | [1],[2] | ||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||
(Loss) income from continuing operations before income taxes, equity in earnings and noncontrolling interests (b) | 11,000,000 | [4] | 16,000,000 | [4] | 16,000,000 | [4] | 8,000,000 | [4] | 9,000,000 | [5] | 16,000,000 | [5] | 17,000,000 | [5] | 7,000,000 | [5] | ||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||||||
Restructuring costs, net | 2,000,000 | |||||||||||||||||||||||||
Impairment of Goodwill | [11] | 0 | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||
Net revenues | (69,000,000) | (82,000,000) | (87,000,000) | (55,000,000) | [12] | (68,000,000) | [13] | (83,000,000) | [13] | (92,000,000) | [13] | (63,000,000) | [13] | (293,000,000) | [1],[2],[14] | (306,000,000) | [1],[2],[14] | (311,000,000) | [1],[2],[3],[14] | |||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||
(Loss) income from continuing operations before income taxes, equity in earnings and noncontrolling interests (b) | $ (73,000,000) | [4] | $ (90,000,000) | [4] | $ (110,000,000) | [4] | $ (104,000,000) | [4] | $ (102,000,000) | [5] | $ (67,000,000) | [5] | $ (73,000,000) | [5] | $ (66,000,000) | [5] | ||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||||||
Restructuring costs, net | $ 10,000,000 | $ 3,000,000 | $ 1,000,000 | |||||||||||||||||||||||
[1] | Revenues for Realo gy Leads Group include intercompany referral commissions paid by Realogy Brokerage Group of $18 million for each of the years ended December 31, 2019, 2018 and 2017. Such amounts are recorded as contra-revenues by Realogy Brokerage Group. There are no other material intersegment transactions. | |||||||||||||||||||||||||
[2] | Transactions between segments are eliminated in consolidation. Revenues for Realogy Franchise Group include intercompany royalties and marketing fees paid by Realogy Brokerage Group of $293 million, $306 million and $311 million for the years ended December 31, 2019, 2018 and 2017, respectively. Such amounts are eliminated through the Corporate and Other line. | |||||||||||||||||||||||||
[3] | Amounts for the year ended December 31, 2017 have not been adjusted under the modified retrospective method. | |||||||||||||||||||||||||
[4] | The quarterly results include the following: • restructuring charges of $9 million, $9 million, $11 million and $13 million in the first, second, third and fourth quarters, respectively; • a goodwill impairment charge of $237 million in the third quarter which reduced the net carrying value of Realogy Brokerage Group by $180 million after accounting for the related income tax benefit of $57 million and $1 million, $2 million, $3 million and $6 million of other impairment charges primarily related to lease asset impairments incurred in the first, second, third and fourth quarters, respectively; • former parent legacy net cost of $1 million in the third quarter; and | |||||||||||||||||||||||||
[5] | The quarterly results include the following : • restructuring charges of $22 million, $5 million, $9 million and $11 million in the first, second, third and fourth quarters, respectively; • former parent legacy net cost of $4 million in the fourth quarter; and | |||||||||||||||||||||||||
[6] | Basic and diluted EPS amounts in each quarter are computed using the weighted-average number of shares outstanding during that quarter, while basic and diluted EPS for the full year is computed using the weighted-average number of shares outstanding during the year. Therefore, the sum of the four quarters’ basic or diluted EPS may not equal the full year basic or diluted EPS (see Note 17 "Earnings (Loss) Per Share" for further information). (d) As a result of the pending sale of Cartus Relocation Services, the Company met held for sale requirements under ASC 360 and discontinued operations under ASC 205 in the fourth quarter of 2019. Therefore, amounts presented in the Company's Form 10-Qs for the periods prior to the fourth quarter of 2019 did not reflect discontinued operations, but have been adjusted to reflect discontinued operations in the tables above. | |||||||||||||||||||||||||
[7] | Basic and diluted EPS amounts in each quarter are computed using the weighted-average number of shares outstanding during that quarter, while basic and diluted EPS for the full year is computed using the weighted-average number of shares outstanding during the year. Therefore, the sum of the four quarters’ basic or diluted EPS may not equal the full year basic or diluted EPS. (d) As a result of the pending sale of Cartus Relocation Services, the Company met held for sale requirements under ASC 360 and discontinued operations under ASC 205 in the fourth quarter of 2019. Therefore, amounts presented in the Company's Form 10-Qs for the periods prior to the fourth quarter of 2019 did not reflect discontinued operations, but have been adjusted to reflect discontinued operations in the tables above. | |||||||||||||||||||||||||
[8] | The year ended December 31, 2019 includes $38 million of expense related to the Facility and Operational Efficiencies Program and $4 million of expense related to prior restructuring programs. The years ended December 31, 2018 and December 31, 2017 relate to prior restructuring programs. | |||||||||||||||||||||||||
[9] | The year ended December 31, 2019 includes restructuring charges of $2 million at Realogy Franchise Group, $25 million at Realogy Brokerage Group, $3 million at Realogy Title Group, $2 million at Realogy Leads Group and $10 million at Corporate and Other. The year ended December 31, 2018 includes restructuring charges of $3 million at Realogy Franchise Group, $37 million at Realogy Brokerage Group, $4 million at Realogy Title Group and $3 million at Corporate and Other. The year ended December 31, 2017 includes restructuring charges of $1 million at Realogy Franchise Group, $9 million at Realogy Brokerage Group, $1 million at Realogy Title Group and $1 million at Corporate and Other. | |||||||||||||||||||||||||
[10] | Former parent legacy items and (Gain) loss on the early extinguishment of debt are recorded in Corporate and Other. | |||||||||||||||||||||||||
[11] | The Company recognized a goodwill impairment charge of $237 million during the third quarter of 2019 related to Realogy Brokerage Group. The impairment charge of $237 million was offset by an income tax benefit of $57 million resulting in a net reduction in the carrying value of Realogy Brokerage Group of $180 million (see Note 20, "Selected Quarterly Financial Data", for additional information). | |||||||||||||||||||||||||
[12] | Represents the elimination of transactions primarily between Realogy Franchise Group and Realogy Brokerage Group. | |||||||||||||||||||||||||
[13] | Represents the elimination of transactions primarily between Realogy Franchise Group and Realogy Brokerage Group. | |||||||||||||||||||||||||
[14] | Includes the elimination of transactions between segments. |