Frontdoor (FTDR) 10-Q 2 May 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	Apr. 26, 2024
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	001-38617
Entity Registrant Name	Frontdoor, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-3871179
Entity Address, Address Line One	3400 Players Club Parkway
Entity Address, City or Town	Memphis
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	38125
City Area Code	901
Local Phone Number	701-5000
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	FTDR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		77,790,340
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2024
Entity Central Index Key	0001727263

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Condensed Consolidated Statements of Operations and Comprehensive Income [Abstract]
Revenue	$ 378	$ 367
Cost of services rendered	184	197
Gross Profit	195	170
Selling and administrative expenses	135	125
Depreciation and amortization expense	9	9
Restructuring charges		1
Interest expense	10	10
Interest and net investment income	(5)	(3)
Income before Income Taxes	45	29
Provision for income taxes	11	7
Net Income	34	22
Other Comprehensive Income (Loss), Net of Income Taxes:
Unrealized gain (loss) on derivative instruments, net of income taxes	2	(2)
Total Other Comprehensive Income (Loss), Net of Income Taxes	2	(2)
Comprehensive Income	$ 35	$ 20
Earnings per Share:
Basic	$ 0.43	$ 0.27
Diluted	$ 0.43	$ 0.27
Weighted-average Common Shares Outstanding:
Basic	78.3	81.5
Diluted	79	81.9

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 378	$ 325
Receivables, less allowance of $4 and $5, respectively	4	6
Prepaid expenses and other current assets	30	32
Total Current Assets	412	363
Other Assets:
Property and equipment, net	64	60
Goodwill	503	503
Intangible assets, net	143	143
Operating lease right-of-use assets	7	3
Deferred customer acquisition costs	11	12
Other assets	6	5
Total Assets	1,146	1,089
Current Liabilities:
Accounts payable	70	76
Accrued liabilities:
Payroll and related expenses	18	38
Home warranty claims	64	76
Other	33	22
Deferred revenue	158	102
Current portion of long-term debt	17	17
Total Current Liabilities	360	331
Long-Term Debt	573	577
Other Long-Term Liabilities:
Deferred tax liabilities, net	25	25
Operating lease liabilities	20	16
Other long-term liabilities	5	5
Total Other Long-Term Liabilities	51	46
Commitments and Contingencies (Note 7)
Shareholders' Equity:
Common stock, $0.01 par value; 2,000,000,000 shares authorized; 86,871,669 shares issued and 78,296,296 shares outstanding as of March 31, 2024 and 86,553,387 shares issued and 78,378,511 shares outstanding as of December 31, 2023	1	1
Additional paid-in capital	120	117
Retained earnings	330	296
Accumulated other comprehensive income	7	6
Less treasury stock, at cost; 8,575,373 shares as of March 31, 2024 and 8,174,876 shares as of December 31, 2023	(296)	(283)
Total Shareholders' Equity	162	136
Total Liabilities and Shareholders' Equity	$ 1,146	$ 1,089

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Condensed Consolidated Statements of Financial Position [Abstract]
Allowance for receivables (in dollars)	$ 4	$ 5
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, shares issued (in shares)	86,871,669	86,553,387
Common stock, shares outstanding (in shares)	78,296,296	78,378,511
Treasury stock (in shares)	8,575,373	8,174,876

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]
Balance at beginning of period at Dec. 31, 2022		$ 1	$ 90	$ 124	$ 8	$ (162)
Net income	$ 22			22
Stock-based compensation expense			5
Taxes paid related to net share settlement of equity awards			(3)
Other comprehensive income (loss), net of tax					(2)
Balance at end of period at Mar. 31, 2023	83	1	92	146	6	(162)
Balance at beginning of period at Dec. 31, 2023	136	1	117	296	6	(283)
Net income	34			34
Stock-based compensation expense			7
Taxes paid related to net share settlement of equity awards			(4)
Repurchase of common stock	(12)					(13)
Other comprehensive income (loss), net of tax					2
Balance at end of period at Mar. 31, 2024	$ 162	$ 1	$ 120	$ 330	$ 7	$ (296)

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Condensed Consolidated Statements of Cash Flows [Abstract]
Cash and Cash Equivalents at Beginning of Period	$ 325	$ 292
Cash Flows from Operating Activities:
Net Income	34	22
Adjustments to reconcile net income to net cash provided from operating activities:
Depreciation and amortization expense	9	9
Deferred income tax benefit		(2)
Stock-based compensation expense	7	5
Restructuring charges		1
Payments for restructuring charges	(1)	(1)
Other	1
Changes in working capital:
Receivables	1	(1)
Prepaid expenses and other current assets	2	(6)
Accounts payable	(7)	2
Deferred revenue	57	46
Accrued liabilities	(31)	(24)
Current income taxes	11	9
Net Cash Provided from Operating Activities	84	60
Cash Flows from Investing Activities:
Purchases of property and equipment	(10)	(8)
Net Cash Used for Investing Activities	(10)	(8)
Cash Flows from Financing Activities:
Repayments of debt	(4)	(4)
Repurchase of common stock	(13)
Other financing activities	(4)	(3)
Net Cash Used for Financing Activities	(21)	(7)
Cash Increase During the Period	53	45
Cash and Cash Equivalents at End of Period	$ 378	$ 337

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2024
Description of Business [Abstract]
Description of Business	Note 1. Description of Business Frontdoor is the leading provider of home warranties in the United States, as measured by revenue, and operates primarily under the American Home Shield brand. Our customizable home warranties help customers protect and maintain their homes, typically their most valuable asset, from costly and unplanned breakdowns of essential home systems and appliances. Our home warranty customers usually subscribe to an annual service plan agreement that covers the repair or replacement of major components of more than 20 home systems and appliances, including electrical, plumbing, HVAC systems, water heaters, refrigerators, dishwashers and ranges/ovens/cooktops, as well as optional coverages for electronics, pools, spas and pumps. Frontdoor also provides on-demand home services and a one-stop app experience for home repair and maintenance. Enabled by our Streem technology, the app empowers homeowners by connecting them in real time through video chat with qualified experts to diagnose and solve their problems. As of March 31, 2024, we had 2.0 million active home warranties across all brands in the United States.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Significant Accounting Policies [Abstract]
Significant Accounting Policies	Note 2. Significant Accounting Policies Our significant accounting policies are described in Note 2 to the audited consolidated financial statements included in our 2023 Form 10-K. There have been no material changes to our significant accounting policies during the three months ended March 31, 2024. Basis of Presentation We recommend that the accompanying condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in our 2023 Form 10-K. The accompanying condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results that might be achieved for the respective full year. Newly Issued Accounting Standards In 2023, the FASB issued ASU 2023-07 , Segment Reporting (Topic 280), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the guidance should be applied retrospectively to all periods presented in the financial statements, unless it is impracticable. We intend to adopt the provisions of this guidance in conjunction with our 2024 Annual Report on Form 10-K for the year ended December 31, 2024. We are currently evaluating the impact of this ASU on our consolidated financial statements and related disclosures. In 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740), which improves income tax disclosure requirements, primarily through enhanced disclosures related to the rate reconciliation and income taxes paid information. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted, and the guidance should be applied on a prospective basis. Retrospective application is permitted. We intend to adopt the provisions of this guidance in conjunction with our 2024 Annual Report on Form 10-K for the year ended December 31, 2024. We are currently evaluating the impact of this ASU on our consolidated financial statements and related disclosures.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2024
Revenue [Abstract]
Revenue	Note 3. Revenue The majority of our revenue is generated from annual home warranty contracts entered into with our customers. Home warranty contracts are typically one year in duration. We derive substantially all of our revenue from customers in the United States. We disaggregate revenue from contracts with customers into major customer acquisition channels. We determined that disaggregating revenue into these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Revenue by major customer acquisition channel is as follows: Three Months Ended March 31, (In millions) 2024 2023 Renewals $ 298 $ 278 Real estate (1) 27 33 Direct-to-consumer (1) 36 44 Other 17 11 Total $ 378 $ 367 (1) First-year revenue only. Our home warranty contracts have one performance obligation, which is to provide for the repair or replacement of essential home systems and appliances, as applicable per the contract. We recognize revenue at the agreed upon contractual amount over time using the input method in proportion to the costs expected to be incurred in performing services under the contracts. Those costs bear a direct relationship to the fulfillment of our obligations under the contracts and are representative of the relative fair value of the services provided to the customer. As the costs to fulfill the obligations of the home warranties are incurred on an other-than-straight-line basis, we utilize historical evidence to estimate the expected claims expense and related timing of such costs and make a corresponding adjustment each period to the timing of our related revenue recognition. This adjustment to the straight-line revenue creates a contract asset or contract liability, as described under the heading “Contract Assets and Liabilities” below. We regularly review our estimates of claims costs and adjust these estimates when appropriate. Renewals Revenue from customer renewals of home warranty contracts, which were previously initiated in the real estate or direct-to-consumer channel are classified as renewal revenue above. Renewals relate to consecutive contract periods and take place at the end of the first year of a real estate or direct-to-consumer home warranty contract. Customer payments for renewals are primarily received in installments over the new contract period. Real estate Real estate home warranties are sold through annual contracts which occur in connection with a real estate sale. These plans are typically paid in full at closing on the real estate transaction. First-year revenue from the real estate channel is classified as real estate above. At the option of the customer, upon renewal of the contract, the future revenue derived from home warranties sold in this channel is classified as renewal revenue as described above. Direct-to-consumer Direct-to-consumer home warranties are sold through annual contracts which occur in response to our marketing efforts. Customer payments for direct-to-consumer sales are primarily received in installments over the contract period. First-year revenue from the direct-to-consumer channel is classified as direct-to-consumer above. At the option of the customer, upon renewal of the contract, the future revenue derived from home warranties sold in this channel is classified as renewal revenue as described above. Other Other revenue primarily includes revenue generated by on-demand home services, as well as administrative fees and ancillary services attributable to our home warranty contracts. Deferred Customer Acquisition Costs We capitalize the incremental costs of obtaining a contract with a customer and recognize the related expense using the input method in proportion to the costs expected to be incurred in performing services under the contract, over the expected customer relationship period. Deferred customer acquisition costs were $ 11 million and $ 12 million as of March 31, 2024 and December 31, 2023, respectively. Amortization of deferred customer acquisition costs was $ 3 million and $ 4 million for the three months ended March 31, 2024 and 2023, respectively. There were no impairment losses related to these capitalized costs during the three months ended March 31, 2024 and 2023. Receivables, Less Allowance We record a receivable due from customers once we have an unconditional right to invoice and receive payment in the future related to the services provided and anticipate the collection of amounts due to us. Contracts for home warranties may be invoiced upfront or monthly in straight-line installment payments over the contract period. The payment terms are determined prior to the execution of the contract. Contract Assets and Liabilities Contract assets arise when we recognize revenue for our home warranty contracts prior to a customer being invoiced. These timing differences are created when the recognition of revenue in proportion to the costs expected to be incurred in performing the services under the contract are accelerated as compared to the recognition of revenue on a straight-line basis over the contract period. There were no contract assets as of March 31, 2024. Our contract liabilities consist of deferred revenue which is recognized when cash payments are received in advance of the performance of services, including when the amounts are refundable. Amounts are recognized as revenue in proportion to the costs expected to be incurred in performing services under our contracts. A summary of the changes in deferred revenue for the three months ended March 31, 2024 is as follows: (In millions) Balance at December 31, 2023 $ 102 Deferral of revenue 104 Recognition of deferred revenue ( 47 ) Balance at March 31, 2024 $ 158 There was approximately $ 41 million during the three months ended March 31, 2024 that was included in the deferred revenue balance as of December 31, 2023.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets [Abstract]
Goodwill and Intangible Assets	Note 4. Goodwill and Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized and are subject to assessment for impairment on an annual basis, or more frequently if circumstances indicate a potential impairment. We perform our annual assessment for impairment on October 1 of every year. The balance of goodwill was $ 503 million as of March 31, 2024 and December 31, 2023. There were no goodwill impairment charges recorded in the three months ended March 31, 2024. The following table provides a summary of the components of our intangible assets: As of March 31, 2024 As of December 31, 2023 Accumulated Accumulated (In millions) Gross Amortization Net Gross Amortization Net Trade names (1) $ 141 $ — $ 141 $ 141 $ — $ 141 Customer relationships 173 ( 173 ) — 173 ( 173 ) — Developed technology 19 ( 17 ) 2 19 ( 17 ) 2 Other 32 ( 32 ) — 32 ( 32 ) — Total $ 365 $ ( 222 ) $ 143 $ 365 $ ( 221 ) $ 143 (1) Not subject to amortization. Amortization expense was $ 1 million for each of the three months ended March 31, 2024 and 2023. There were no intangible asset impairment charges for the three months ended March 31, 2024 and 2023.

Leases

Leases	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Leases	Note 5. Leases We have operating leases primarily for our corporate headquarters located in Memphis, Tennessee, a collaboration center located in Scottsdale, Arizona and a technology collaboration center in Pune, India. We also continue to lease certain office space in other geographies, which we have either exited or subleased. Our leases have remaining lease terms ranging from less than one year to 11 years , some of which include options to extend the leases for up to five years . The weighted-average remaining lease term and weighted-average discount rate related to our operating leases are as follows: As of March 31, December 31, 2024 2023 Weighted-average remaining lease term (years) 9 9 Weighted-average discount rate 6.4 % 6.5 % We recognized operating lease expense of less than $ 1 million and $ 1 million for the three months ended March 31, 2024 and 2023, respectively. These expenses are included in selling and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income. Supplemental balance sheet information related to our operating lease liabilities is as follows: As of March 31, December 31, (In millions) 2024 2023 Other accrued liabilities $ 2 $ 2 Operating lease liabilities 20 16 Total operating lease liabilities $ 23 $ 18 Supplemental cash flow information related to our operating leases is as follows: Three Months Ended March 31, (In millions) 2024 2023 Cash paid on operating lease liabilities (1) $ 1 $ 1 Right-of-use assets obtained in exchange for lease obligations 6 — (1) Amount is presented net of cash provided from sublease income. In conjunction with the operating lease of our collaboration center located in Scottsdale, Arizona, we recognized a $ 2 million tenant improvement allowance as of March 31, 2024, which is a non-cash investing activity. The following table presents the maturities of our operating lease liabilities as of March 31, 2024: (In millions) 2024 (remainder) (1) $ 2 2025 (1) 2 2026 (1) 3 2027 4 2028 3 2029 2 Thereafter 12 Total future lease payments (1) 28 Less imputed interest ( 7 ) Total operating lease liabilities (1) $ 20 (1) Amount is presented net of future sublease income totaling $ 3 million, which relates to the remainder of the year ending December 31, 2024 and the years ending December 31, 2025 through December 31, 2026.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Taxes [Abstract]
Income Taxes	Note 6. Income Taxes We are subject to taxation in the United States, various states and foreign jurisdictions. Substantially all of our income before income taxes for the three months ended March 31, 2024 and 2023 was generated in the United States. We compute interim period income taxes by applying an anticipated annual effective tax rate to our year-to-date income or loss from operations before income taxes, except for significant unusual or infrequently occurring items. As a result, our estimated tax rate is adjusted each quarter. The effective tax rate on income before income taxes was 24.4 percent and 25.2 percent for the three months ended March 31, 2024 and 2023. The decrease in the effective tax rate for the three months ended March 31, 2024 compared to 2023 was primarily due to the impact of share-based awards, offset, in part, by a decrease in income tax credits.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 7. Commitments and Contingencies Accruals for home warranty claims are made using internal actuarial projections, which are based on current claims and historical claims experience. Accruals are established based on estimates of the ultimate cost to settle claims. Home warranty claims take approximately three months to settle, on average, and substantially all claims are settled within six months of incurrence. The amount of time required to settle a claim can vary based on a number of factors, including whether a replacement is ultimately required. In addition to our estimates, we engage a third-party actuary to perform an accrual analysis utilizing generally accepted actuarial methods that incorporate cumulative historical claims experience and information provided by us. We regularly review our estimates of claims costs along with the third-party analysis and adjust our estimates when appropriate. We believe that utilizing actuarial methods in our estimation process to account for these liabilities provides a consistent and effective way to measure these judgmental accruals. We have certain liabilities with respect to existing or potential claims, lawsuits and other proceedings. We accrue for these liabilities when it is probable that future costs will be incurred and such costs can be reasonably estimated. Any resulting adjustments, which could be material, are recorded in the period the adjustments are identified. Due to the nature of our business activities, we are also at times subject to pending and threatened legal and regulatory actions that arise out of the ordinary course of business. In the opinion of management, based in part upon advice of legal counsel, the disposition of any such matters is not expected, individually or in the aggregate, to have a material adverse effect on our business, financial position, results of operations or cash flows. However, the results of legal actions cannot be predicted with certainty. Therefore, it is possible that our business, financial position, results of operations or cash flows could be materially adversely affected in any particular period by the unfavorable resolution of one or more legal actions.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2024
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 8. Stock-Based Compensation We recognized stock-based compensation expense of $ 7 million ($ 6 million, net of tax) and $ 5 million ($ 4 million, net of tax) for the three months ended March 31, 2024 and 2023, respectively. These charges are included in selling and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income. A summary of awards granted under the Omnibus Plan during the three months ended March 31, 2024 is as follows: Weighted- Weighted- Weighted- Number of Average Average Average Awards Exercise Grant Date Vesting Granted Price Fair Value Period Stock options 566,843 31.95 14.81 4.0 Restricted stock units 797,261 31.95 3.0 Performance shares (1) 217,527 31.95 3.0 (1) The information related to performance shares above assumes 100 % of the performance condition, which is based on revenue and Adjusted EBITDA targets, is met. The ultimate number of performance shares that may be earned depends on the achievement of this performance condition . As of March 31, 2024, there was $ 61 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock options, performance options, restricted stock units (“RSUs”) and performance shares. These costs are expected to be recognized over a weighted-average period of 2.63 years.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2024
Long-Term Debt [Abstract]
Long-Term Debt	Note 9. Long-Term Debt Long-term debt is summarized in the following table: As of March 31, December 31, (In millions) 2024 2023 Term Loan A maturing in 2026 (1) $ 223 $ 226 Term Loan B maturing in 2028 (2) 366 367 Revolving Credit Facility maturing in 2026 — — Total debt 589 593 Less current portion ( 17 ) ( 17 ) Total long-term debt $ 573 $ 577 (1) Term Loan A is presented net of unamortized debt issuance costs of $ 1 million as of March 31, 2024 and December 31, 2023. (2) Term Loan B is presented net of unamortized debt issuance costs of $ 2 million as of March 31, 2024 and December 31, 2023 and unamortized discount of $ 1 million as of March 31, 2024 and December 31, 2023. As of March 31, 2024, we had $ 2 million of letters of credit outstanding under our $ 250 million Revolving Credit Facility, and the available borrowing capacity under the Revolving Credit Facility was $ 248 million. As of March 31, 2024, we were in compliance with the covenants under the Credit Agreement. Scheduled Debt Payments The following table presents future scheduled debt payments as of March 31, 2024: (In millions) 2024 (remainder) $ 13 2025 17 2026 205 2027 4 2028 355 Total future scheduled debt payments 594 Less unamortized debt issuance costs ( 3 ) Less unamortized discount ( 1 ) Total debt $ 589

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2024
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Note 10. Supplemental Cash Flow Information Supplemental information relating to our accompanying condensed consolidated statements of cash flows is as follows: Three Months Ended March 31, (In millions) 2024 2023 Cash paid for (received from): Interest expense $ 9 $ 9 Interest income ( 5 ) ( 3 ) Income tax payments, net of refunds — —

Comprehensive Income (Loss)

Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2024
Comprehensive Income (Loss) [Abstract]
Comprehensive Income (Loss)	Note 11. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and the unrealized gains (losses) on our derivative instrument. We disclose comprehensive income (loss) in the accompanying condensed consolidated statements of operations and comprehensive income and condensed consolidated statements of changes in equity. A summary of the changes in AOCI is as follows: Balance at December 31, 2023 $ 6 Other comprehensive income before reclassifications: Pre-tax amount 4 Tax provision 1 After-tax amount 3 Amounts reclassified from AOCI (1) ( 2 ) Total other comprehensive income 2 Balance at March 31, 2024 $ 7 (1) Amounts are net of income taxes. See the table below on reclassifications out of AOCI for additional information. A summary of reclassifications out of AOCI is as follows: Three Months Ended March 31, (In millions) 2024 2023 Gain on interest rate swap contract (1) $ 2 $ 1 Impact of income taxes (2) — — Total reclassifications during the period $ 2 $ 1 (1) Included in interest expense in the accompanying condensed consolidated statements of operations and comprehensive income. (2) Included in provision for income taxes in the accompanying condensed consolidated statements of operations and comprehensive income.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2024
Derivative Financial Instruments [Abstract]
Derivative Financial Instruments	Note 12. Derivative Financial Instruments We currently use a derivative financial instrument to manage risks associated with changes in interest rates by hedging the interest payments on a portion of our variable rate debt through the use of an interest rate swap contract. We do not hold or issue derivative financial instruments for trading or speculative purposes. In designating derivative financial instruments as hedging instruments under accounting standards for derivative instruments, we formally document the relationship between the hedging instrument and the hedged item, as well as the risk management objective and strategy for the use of the hedging instrument. This documentation includes linking the derivatives to forecasted transactions. We assess at the time a derivative contract is entered into, and at least quarterly thereafter, whether the derivative item is effective in offsetting the projected cash flows of the associated forecasted transaction. Our interest rate swap contract is classified as a cash flow hedge, and, as such, it is recorded in the accompanying condensed consolidated statements of financial position as either an asset or liability at fair value, with changes in fair value recorded in AOCI. Cash flows related to the interest rate swap contract are classified as operating activities in the accompanying condensed consolidated statements of cash flows. The effective portion of the gain or loss on our interest rate swap contract is recorded in AOCI. These amounts are reclassified into earnings in the same period or periods during which the hedged forecasted debt interest settlement affects earnings. See Note 11 to the accompanying condensed consolidated financial statements for the effective portion of the gain or loss on derivative instruments recorded in AOCI and for the amounts reclassified out of AOCI and into earnings during the periods presented. As the underlying forecasted transactions occur during the next 12 months, we estimate the unrealized hedging gain in AOCI expected to be recognized in earnings is $ 5 million, net of tax, as of March 31, 2024. The amounts ultimately reclassified into earnings during the next 12 months will be determined based on the actual interest rates in effect at the time the positions are settled, and as a result, they could differ materially from our estimate noted above.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 13. Fair Value Measurements We estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. The valuation techniques require inputs that we categorize into a three-level hierarchy, from highest to lowest level of observable inputs, as follows: unadjusted quoted prices for identical assets or liabilities in active markets ("Level 1"); direct or indirect observable inputs, including quoted prices or other market data, for similar assets or liabilities in active markets or identical assets or liabilities in less active markets ("Level 2"); and unobservable inputs that require significant judgment for which there is little or no market data ("Level 3"). When multiple input levels are required for a valuation, we categorize the entire fair value measurement according to the lowest level of input that is significant to the measurement, even though we may have also utilized significant inputs that are more readily observable. The period-end carrying amounts of cash and cash equivalents, receivables, accounts payable and accrued liabilities approximate their fair values due to the short-term maturities of these financial instruments. As of March 31, 2024 and December 31, 2023, the carrying amounts of our total debt were $ 589 million and $ 593 million, respectively, and the estimated fair values were $ 592 million and $ 598 million, respectively. The fair value of our debt was estimated based on available market prices for the same or similar instruments that are considered significant other observable inputs (Level 2) within the fair value hierarchy and was based on information available to us as of the respective period end dates. We determine the fair value of our interest rate swap contract using a forward interest rate curve obtained from a third-party market data provider. The fair value of the contract is the sum of the expected future settlements between the contract counterparties, discounted to present value. The expected future settlements are determined by comparing the contract interest rate to the expected forward interest rate as of each settlement date and applying the difference between these two rates to the notional amount of debt in the interest rate swap contract. We did not change our valuation techniques for measuring the fair value of any financial assets and liabilities during the three months ended March 31, 2024. Transfers between hierarchy levels, if any, are recognized at the end of the reporting period. There were no transfers between hierarchy levels during the three months ended March 31, 2024. Our interest rate swap contract is currently our only financial instrument remeasured at fair value on a recurring basis. A summary of the carrying value and fair value of this financial instrument is as follows: Estimated Fair Value Measurements Quoted Significant Prices Other Significant in Active Observable Unobservable Carrying Markets Inputs Inputs (In millions) Value (Level 1) (Level 2) (Level 3) As of March 31, 2024: Prepaid expenses and other current assets $ 6 $ — $ 6 $ — Other assets 3 — 3 — Total assets $ 9 $ — $ 9 $ — As of December 31, 2023: Prepaid expenses and other current assets $ 5 $ — $ 5 $ — Other assets 2 — 2 — Total assets $ 7 $ — $ 7 $ —

Share Repurchase Program

Share Repurchase Program	3 Months Ended
	Mar. 31, 2024
Share Repurchase Program [Abstract]
Share Repurchase Program	Note 14. Share Repurchase Program On September 7, 2021, we announced a three-year repurchase authorization of up to $ 400 million of outstanding shares of our common stock over the three-year period from September 3, 2021 through September 3, 2024. As of March 31, 2024, we have repurchased a total of 8,483,316 outstanding shares at a cost of $ 294 million, which is included in treasury stock on the accompanying condensed consolidated statements of financial position, and we had $ 106 million remaining available for future repurchases under this program. A summary of repurchases of outstanding shares is as follows: Three Months Ended March 31, (In millions, except per share data) 2024 2023 Number of shares purchased 400,497 — Average price paid per share (1) $ 31.21 $ — Cost of shares purchased (1) $ 12 $ — (1) The average price paid per share and the cost of shares purchased are calculated on a trade date basis and exclude associated commissions and taxes of less than $ 1 million for the three months ended March 31, 2024.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Note 15. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potentially dilutive shares of common stock been issued. The dilutive effect of stock options, performance options, RSUs, performance shares and restricted stock awards ("RSAs") are reflected in diluted earnings per share by applying the treasury stock method. A summary of the calculations of our basic and diluted earnings per share is as follows: Three Months Ended March 31, (In millions, except per share data) 2024 2023 Net Income $ 34 $ 22 Weighted-average common shares outstanding: 78.3 81.5 Effect of dilutive securities: RSUs (1) 0.7 0.4 Stock options (2) — — Weighted-average common shares outstanding - assuming dilution: 79.0 81.9 Basic earnings per share $ 0.43 $ 0.27 Diluted earnings per share $ 0.43 $ 0.27 (1) RSUs of 62,764 shares and 510,116 shares for the three months ended March 31, 2024 and 2023, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive. (2) Stock options to purchase 1,072,170 shares and 1,114,819 shares for the three months ended March 31, 2024 and 2023, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive. Performance options to purchase 591,420 shares and 258,596 shares for the three months ended March 31, 2024 and 2023, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive.

Significant Accounting Polici_2

Significant Accounting Policies (Policy)	3 Months Ended
	Mar. 31, 2024
Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We recommend that the accompanying condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in our 2023 Form 10-K. The accompanying condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results that might be achieved for the respective full year.
Newly Issued Accounting Standards	Newly Issued Accounting Standards In 2023, the FASB issued ASU 2023-07 , Segment Reporting (Topic 280), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the guidance should be applied retrospectively to all periods presented in the financial statements, unless it is impracticable. We intend to adopt the provisions of this guidance in conjunction with our 2024 Annual Report on Form 10-K for the year ended December 31, 2024. We are currently evaluating the impact of this ASU on our consolidated financial statements and related disclosures. In 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740), which improves income tax disclosure requirements, primarily through enhanced disclosures related to the rate reconciliation and income taxes paid information. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted, and the guidance should be applied on a prospective basis. Retrospective application is permitted. We intend to adopt the provisions of this guidance in conjunction with our 2024 Annual Report on Form 10-K for the year ended December 31, 2024. We are currently evaluating the impact of this ASU on our consolidated financial statements and related disclosures.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue [Abstract]
Disaggregation of Revenue from Contracts with Customers	Three Months Ended March 31, (In millions) 2024 2023 Renewals $ 298 $ 278 Real estate (1) 27 33 Direct-to-consumer (1) 36 44 Other 17 11 Total $ 378 $ 367 (1) First-year revenue only.
Change in Deferred Revenue	(In millions) Balance at December 31, 2023 $ 102 Deferral of revenue 104 Recognition of deferred revenue ( 47 ) Balance at March 31, 2024 $ 158

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets [Abstract]
Schedule of Other Intangible Asset Balances	The following table provides a summary of the components of our intangible assets: As of March 31, 2024 As of December 31, 2023 Accumulated Accumulated (In millions) Gross Amortization Net Gross Amortization Net Trade names (1) $ 141 $ — $ 141 $ 141 $ — $ 141 Customer relationships 173 ( 173 ) — 173 ( 173 ) — Developed technology 19 ( 17 ) 2 19 ( 17 ) 2 Other 32 ( 32 ) — 32 ( 32 ) — Total $ 365 $ ( 222 ) $ 143 $ 365 $ ( 221 ) $ 143 (1) Not subject to amortization.

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Weighted Average Remaining Lease Term and Discount Rate	The weighted-average remaining lease term and weighted-average discount rate related to our operating leases are as follows: As of March 31, December 31, 2024 2023 Weighted-average remaining lease term (years) 9 9 Weighted-average discount rate 6.4 % 6.5 %
Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to our operating lease liabilities is as follows: As of March 31, December 31, (In millions) 2024 2023 Other accrued liabilities $ 2 $ 2 Operating lease liabilities 20 16 Total operating lease liabilities $ 23 $ 18
Supplemental Cash Flow Related to Leases	Three Months Ended March 31, (In millions) 2024 2023 Cash paid on operating lease liabilities (1) $ 1 $ 1 Right-of-use assets obtained in exchange for lease obligations 6 — (1) Amount is presented net of cash provided from sublease income.
Maturities of Lease Liabilities	The following table presents the maturities of our operating lease liabilities as of March 31, 2024: (In millions) 2024 (remainder) (1) $ 2 2025 (1) 2 2026 (1) 3 2027 4 2028 3 2029 2 Thereafter 12 Total future lease payments (1) 28 Less imputed interest ( 7 ) Total operating lease liabilities (1) $ 20 (1) Amount is presented net of future sublease income totaling $ 3 million, which relates to the remainder of the year ending December 31, 2024 and the years ending December 31, 2025 through December 31, 2026.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
Stock-Based Compensation [Abstract]
Summary of Awards Granted	A summary of awards granted under the Omnibus Plan during the three months ended March 31, 2024 is as follows: Weighted- Weighted- Weighted- Number of Average Average Average Awards Exercise Grant Date Vesting Granted Price Fair Value Period Stock options 566,843 31.95 14.81 4.0 Restricted stock units 797,261 31.95 3.0 Performance shares (1) 217,527 31.95 3.0 (1) The information related to performance shares above assumes 100 % of the performance condition, which is based on revenue and Adjusted EBITDA targets, is met. The ultimate number of performance shares that may be earned depends on the achievement of this performance condition .

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2024
Long-Term Debt [Abstract]
Schedule of Long-Term Debt	Long-term debt is summarized in the following table: As of March 31, December 31, (In millions) 2024 2023 Term Loan A maturing in 2026 (1) $ 223 $ 226 Term Loan B maturing in 2028 (2) 366 367 Revolving Credit Facility maturing in 2026 — — Total debt 589 593 Less current portion ( 17 ) ( 17 ) Total long-term debt $ 573 $ 577 (1) Term Loan A is presented net of unamortized debt issuance costs of $ 1 million as of March 31, 2024 and December 31, 2023. (2) Term Loan B is presented net of unamortized debt issuance costs of $ 2 million as of March 31, 2024 and December 31, 2023 and unamortized discount of $ 1 million as of March 31, 2024 and December 31, 2023.
Scheduled Debt Payments	The following table presents future scheduled debt payments as of March 31, 2024: (In millions) 2024 (remainder) $ 13 2025 17 2026 205 2027 4 2028 355 Total future scheduled debt payments 594 Less unamortized debt issuance costs ( 3 ) Less unamortized discount ( 1 ) Total debt $ 589

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2024
Supplemental Cash Flow Information [Abstract]
Schedule of Supplemental Information Relating to the Accompanying Condensed Consolidated Statements of Cash Flows	Supplemental information relating to our accompanying condensed consolidated statements of cash flows is as follows: Three Months Ended March 31, (In millions) 2024 2023 Cash paid for (received from): Interest expense $ 9 $ 9 Interest income ( 5 ) ( 3 ) Income tax payments, net of refunds — —

Comprehensive Income (Loss) (Ta

Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2024
Comprehensive Income (Loss) [Abstract]
Summary of the Activity in AOCI, Net of the Related Tax Effects	A summary of the changes in AOCI is as follows: Balance at December 31, 2023 $ 6 Other comprehensive income before reclassifications: Pre-tax amount 4 Tax provision 1 After-tax amount 3 Amounts reclassified from AOCI (1) ( 2 ) Total other comprehensive income 2 Balance at March 31, 2024 $ 7 (1) Amounts are net of income taxes. See the table below on reclassifications out of AOCI for additional information.
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)	A summary of reclassifications out of AOCI is as follows: Three Months Ended March 31, (In millions) 2024 2023 Gain on interest rate swap contract (1) $ 2 $ 1 Impact of income taxes (2) — — Total reclassifications during the period $ 2 $ 1 (1) Included in interest expense in the accompanying condensed consolidated statements of operations and comprehensive income. (2) Included in provision for income taxes in the accompanying condensed consolidated statements of operations and comprehensive income.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Measurements [Abstract]
Schedule of the Carrying Amount and Estimated Fair Value of the Company's Financial Instruments that are Recorded at Fair Value on a Recurring Basis	A summary of the carrying value and fair value of this financial instrument is as follows: Estimated Fair Value Measurements Quoted Significant Prices Other Significant in Active Observable Unobservable Carrying Markets Inputs Inputs (In millions) Value (Level 1) (Level 2) (Level 3) As of March 31, 2024: Prepaid expenses and other current assets $ 6 $ — $ 6 $ — Other assets 3 — 3 — Total assets $ 9 $ — $ 9 $ — As of December 31, 2023: Prepaid expenses and other current assets $ 5 $ — $ 5 $ — Other assets 2 — 2 — Total assets $ 7 $ — $ 7 $ —

Share Repurchase Program (Table

Share Repurchase Program (Table)	3 Months Ended
	Mar. 31, 2024
Share Repurchase Program [Abstract]
Purchase Of Outstanding Shares	A summary of repurchases of outstanding shares is as follows: Three Months Ended March 31, (In millions, except per share data) 2024 2023 Number of shares purchased 400,497 — Average price paid per share (1) $ 31.21 $ — Cost of shares purchased (1) $ 12 $ — (1) The average price paid per share and the cost of shares purchased are calculated on a trade date basis and exclude associated commissions and taxes of less than $ 1 million for the three months ended March 31, 2024.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Earnings Per Share	A summary of the calculations of our basic and diluted earnings per share is as follows: Three Months Ended March 31, (In millions, except per share data) 2024 2023 Net Income $ 34 $ 22 Weighted-average common shares outstanding: 78.3 81.5 Effect of dilutive securities: RSUs (1) 0.7 0.4 Stock options (2) — — Weighted-average common shares outstanding - assuming dilution: 79.0 81.9 Basic earnings per share $ 0.43 $ 0.27 Diluted earnings per share $ 0.43 $ 0.27 (1) RSUs of 62,764 shares and 510,116 shares for the three months ended March 31, 2024 and 2023, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive. (2) Stock options to purchase 1,072,170 shares and 1,114,819 shares for the three months ended March 31, 2024 and 2023, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive. Performance options to purchase 591,420 shares and 258,596 shares for the three months ended March 31, 2024 and 2023, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive.

Description of Business (Narrat

Description of Business (Narrative) (Details)	3 Months Ended
	Mar. 31, 2024 Item
Number of active home service plans	2,000,000
Minimum [Member]
Number of systems or appliances covered under service plans	20

Revenue (Narrative) (Details)

Revenue (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenue [Abstract]
Home service plans, typical term	1 year
Deferred customer acquisition costs	$ 11,000,000		$ 12,000,000
Amortization of deferred customer acquisition costs	3,000,000	$ 4,000,000
Impairment losses related to capitalized costs	0	$ 0
Contract assets	0
Revenue recognized	$ 41,000,000

Revenue (Disaggregation of Reve

Revenue (Disaggregation of Revenue from Contracts with Customers) (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Reportable segment revenues		$ 378	$ 367
Renewals [Member]
Disaggregation of Revenue [Line Items]
Reportable segment revenues		298	278
Real Estate [Member]
Disaggregation of Revenue [Line Items]
Reportable segment revenues	[1]	27	33
Direct-To-Consumer [Member]
Disaggregation of Revenue [Line Items]
Reportable segment revenues	[1]	36	44
Revenue, Other [Member]
Disaggregation of Revenue [Line Items]
Reportable segment revenues		$ 17	$ 11
[1] First-year revenue only.

Revenue (Change in Deferred Rev

Revenue (Change in Deferred Revenue) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Revenue [Abstract]
Balance at beginning of period	$ 102
Deferral of revenue	104
Recognition of deferred revenue	(47)
Balance at end of period	$ 158

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Goodwill and Intangible Assets [Abstract]
Goodwill	$ 503,000,000		$ 503,000,000
Goodwill impairment charges	0
Intangible asset impairment charges	0	$ 0
Amortization expense	$ 1,000,000	$ 1,000,000

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets (Schedule of Other Intangible Asset Balances) (Details) - USD ($) $ in Millions		Mar. 31, 2024	Dec. 31, 2023
Finite Lived and Indefinite Lived Intangible Assets by Major Class [Line Items]
Gross		$ 365	$ 365
Accumulated Amortization		(222)	(221)
Net		143	143
Customer Relationships [Member]
Finite Lived and Indefinite Lived Intangible Assets by Major Class [Line Items]
Gross		173	173
Accumulated Amortization		(173)	(173)
Developed Technology [Member]
Finite Lived and Indefinite Lived Intangible Assets by Major Class [Line Items]
Gross		19	19
Accumulated Amortization		(17)	(17)
Net		2	2
Other [Member]
Finite Lived and Indefinite Lived Intangible Assets by Major Class [Line Items]
Gross		32	32
Accumulated Amortization		(32)	(32)
Trade Names [Member]
Finite Lived and Indefinite Lived Intangible Assets by Major Class [Line Items]
Gross	[1]	141	141
Net	[1]	$ 141	$ 141
[1] Not subject to amortization.

Leases (Narrative) (Details)

Leases (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Lessee, Lease, Description [Line Items]
Leases, Renewal Term	5 years
Operating lease expense		$ 1
Scottsdale, Arizona [Member]
Lessee, Lease, Description [Line Items]
Tenant improvement allowance	$ 2
Maximum [Member]
Lessee, Lease, Description [Line Items]
Leases, Remaining Lease Term Years	11 years
Operating lease expense	$ 1
Minimum [Member]
Lessee, Lease, Description [Line Items]
Leases, Remaining Lease Term Years	1 year

Leases (Supplemental Balance Sh

Leases (Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Other accrued liabilities	$ 2	$ 2
Operating lease liabilities	20	16
Total operating lease liabilities	$ 23	$ 18

Leases (Maturities of Lease Lia

Leases (Maturities of Lease Liabilities) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Leases [Abstract]
2024 (remainder)	$ 2
2025	2
2026	3
2027	4
2028	3
2029	2
Thereafter	12
Total future lease payments	28	[1]
Less imputed interest	(7)
Total operating lease liabilities	20	[1]
Projected annual sublease income	$ 3
[1] Amount is presented net of future sublease income totaling $ 3 million, which relates to the remainder of the year ending December 31, 2024 and the years ending December 31, 2025 through December 31, 2026.

Leases (Weighted Average Remain

Leases (Weighted Average Remaining Lease Term and Discount Rate) (Details)	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Weighted-average remaining lease term (years)	9 years	9 years
Weighted-average discount rate	6.40%	6.50%

Leases (Supplemental Cash Flow

Leases (Supplemental Cash Flow Related to Leases) (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Cash paid on operating lease liabilities	[1]	$ 1	$ 1
Right-of-use assets obtained in exchange for lease obligations		$ 6
[1] Amount is presented net of cash provided from sublease income.

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Taxes [Abstract]
Effective tax rate on income from continuing operations (as a percent)	24.40%	25.20%

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details)	3 Months Ended
	Mar. 31, 2024
Maximum [Member]
Loss Contingencies [Line Items]
Home service plan claims settlement, term	6 months
Minimum [Member]
Loss Contingencies [Line Items]
Home service plan claims settlement, term	3 months

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock-Based Compensation [Abstract]
Stock-based compensation expense	$ 7	$ 5
Stock-based compensation expense, net of tax	6	$ 4
Total unrecognized compensation costs related to non-vested stock options, restricted share units and performance shares	$ 61
Weighted-average period of recognition of stock-based compensation cost	2 years 7 months 17 days

Stock-Based Compensation (Summa

Stock-Based Compensation (Summary of Awards Granted) (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Stock Options [Member]
Stock-Based Compensation [Line Items]
Granted (in shares) | shares	566,843
Granted (in dollars per share)	$ 31.95
Granted, Weighted Average Grant Date Fair Value (in dollars per share)	$ 14.81
Granted, Weighted Ave Vesting Period	4 years
Restricted Stock Units [Member]
Stock-Based Compensation [Line Items]
Granted (in shares) | shares	797,261
Granted, Weighted Average Grant Date Fair Value (in dollars per share)	$ 31.95
Weighted Avg. Vesting Period	3 years
Performance Shares [Member]
Stock-Based Compensation [Line Items]
Granted (in shares) | shares	217,527	[1]
Granted, Weighted Average Grant Date Fair Value (in dollars per share)	$ 31.95	[1]
Weighted Avg. Vesting Period	3 years	[1]
Percent of assumed performance target is met	100%
[1] The information related to performance shares above assumes 100 % of the performance condition, which is based on revenue and Adjusted EBITDA targets, is met. The ultimate number of performance shares that may be earned depends on the achievement of this performance condition .

Long-Term Debt (Schedule of Lon

Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions		Mar. 31, 2024	Dec. 31, 2023
Long-term debt [Line Items]
Long-term debt		$ 589	$ 593
Less current portion		(17)	(17)
Total long-term debt		573	577
Unamortized original issue discount		1
Term Loan A Maturing In 2026 [Member]
Long-term debt [Line Items]
Unamortized debt issuance costs		1	1
Term Loan A Maturing In 2026 [Member] | Loans Payable [Member]
Long-term debt [Line Items]
Long-term debt	[1]	223	226
Term Loan B Maturing In 2028 [Member]
Long-term debt [Line Items]
Unamortized debt issuance costs		2	2
Unamortized original issue discount		1	1
Term Loan B Maturing In 2028 [Member] | Loans Payable [Member]
Long-term debt [Line Items]
Long-term debt	[2]	366	367
Revolving Credit Facility Maturing In 2026 [Member]
Long-term debt [Line Items]
Long-term debt
[1] Term Loan A is presented net of unamortized debt issuance costs of $ 1 million as of March 31, 2024 and December 31, 2023. Term Loan B is presented net of unamortized debt issuance costs of $ 2 million as of March 31, 2024 and December 31, 2023 and unamortized discount of $ 1 million as of March 31, 2024 and December 31, 2023.

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details) - Revolving Credit Facility Maturing In 2026 [Member] $ in Millions	Mar. 31, 2024 USD ($)
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 250
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Available borrowing capacity	248
Letter of Credit [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding	$ 2

Long-Term Debt (Scheduled Debt

Long-Term Debt (Scheduled Debt Payments) (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Long-Term Debt [Abstract]
2024 (remainder)	$ 13
2025	17
2026	205
2027	4
2028	355
Total future scheduled debt payments	594
Less unamortized debt issuance costs	(3)
Less unamortized discount	(1)
Long-term debt	$ 589	$ 593

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Schedule of Supplemental Information Relating to the Accompanying Condensed Consolidated Statements of Cash Flows) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash paid for (received from):
Interest expense	$ 9	$ 9
Interest income	(5)	(3)
Income tax payments, net of refunds	$ 0	$ 0

Comprehensive Income (Loss) (Su

Comprehensive Income (Loss) (Summary of the Activity in AOCI, Net of the Related Tax Effects) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ 6
Other comprehensive income before reclassifications:
Balance at end of period	7
Unrealized Gain (Loss) On Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	6
Other comprehensive income before reclassifications:
Pre-tax amount	4
Tax provision	1
After-tax amount	3
Amounts reclassified from AOCI	(2)	[1]
Total other comprehensive loss	2
Balance at end of period	$ 7
[1] Amounts are net of income taxes. See the table below on reclassifications out of AOCI for additional information.

Comprehensive Income (Loss) (Sc

Comprehensive Income (Loss) (Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense		$ (10)	$ (10)
Provision for income taxes		(11)	(7)
Net Income		34	22
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized Gain (Loss) On Derivatives [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	[1]	2	1
Net Income		$ 2	$ 1
[1] Included in interest expense in the accompanying condensed consolidated statements of operations and comprehensive income.

Derivative Financial Instrume_2

Derivative Financial Instruments (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Derivative Financial Instruments [Abstract]
Hedging loss in accumulated other comprehensive income expected to be recognized in earnings, net of tax	$ 5

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Fair Value Measurements [Abstract]
Long-term Debt	$ 589,000,000	$ 593,000,000
Fair value of total debt	592,000,000	$ 598,000,000
Transfers between levels during period	$ 0

Fair Value Measurements (Schedu

Fair Value Measurements (Schedule of the Carrying Amount and Estimated Fair Value of the Company's Financial Instruments that are Recorded at Fair Value on a Recurring Basis) (Details) - Recurring [Member] - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 9	$ 7
Significant Other Observable Inputs (Level 2) [Member] | Prepaid Expenses And Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	6	5
Significant Other Observable Inputs (Level 2) [Member] | Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	3	2
Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	9	7
Carrying Value [Member] | Prepaid Expenses And Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	6	5
Carrying Value [Member] | Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 3	$ 2

Share Repurchase Program (Narra

Share Repurchase Program (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	31 Months Ended
	Mar. 31, 2024	Mar. 31, 2024	Sep. 07, 2021
Share Repurchase Program [Abstract]
Repurchase authorized amount			$ 400
Repurchase authorized period	3 years
Number of shares purchased	400,497,000,000	8,483,316
Cost of share purchased	$ 12	$ 294
Remaining available for future repurchases under program	$ 106	$ 106

Share Repurchase Program (Purch

Share Repurchase Program (Purchase of Outstanding Shares) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	31 Months Ended
	Mar. 31, 2024	Mar. 31, 2024
Share Repurchase Program [Abstract]
Number of shares purchased	400,497,000,000	8,483,316
Average price paid per share	$ 31.21
Cost of share purchased	$ 12	$ 294
Associated fees and taxes	$ 1

Earnings Per Share (Schedule of

Earnings Per Share (Schedule of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income		$ 34	$ 22
Weighted-average common shares outstanding		78,300,000	81,500,000
Weighted-average common shares outstanding - assuming dilution		79,000,000	81,900,000
Basic earnings per share (in dollars per share)		$ 0.43	$ 0.27
Diluted earnings per share (in dollars per share)		$ 0.43	$ 0.27
Restricted Stock Units [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Effect of dilutive securities	[1]	700,000	400,000
Antidilutive securities excluded from computation of diluted earnings per share (in shares)		62,764	510,116
Stock Options [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share (in shares)		1,072,170	1,114,819
Performance Options [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share (in shares)		591,420	258,596
[1] RSUs of 62,764 shares and 510,116 shares for the three months ended March 31, 2024 and 2023, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive.