Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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 | 150 Peabody Place | |
Entity Address, City or Town | Memphis | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 38103 | |
City Area Code | 901 | |
Local Phone Number | 701-5002 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | FTDR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 85,382,950 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Entity Central Index Key | 0001727263 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Consolidated Statements of Operations and Comprehensive Income [Abstract] | ||
Revenue | $ 294 | $ 271 |
Cost of services rendered | 147 | 143 |
Gross Profit | 147 | 128 |
Selling and administrative expenses | 105 | 89 |
Depreciation and amortization expense | 8 | 6 |
Restructuring charges | 3 | 0 |
Spin-off charges | 0 | 1 |
Interest expense | 15 | 16 |
Interest and net investment income | (2) | (1) |
Income before Income Taxes | 17 | 18 |
Provision for income taxes | 4 | 5 |
Net Income | 13 | 13 |
Other Comprehensive Loss, Net of Income Taxes: | ||
Net unrealized loss on derivative instruments | (15) | (5) |
Total Comprehensive (Loss) Income | $ (2) | $ 8 |
Earnings per Share: | ||
Basic | $ 0.15 | $ 0.15 |
Diluted | $ 0.15 | $ 0.15 |
Weighted-average Common Shares Outstanding: | ||
Basic | 85.1 | 84.6 |
Diluted | 85.4 | 84.7 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Position - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 482 | $ 428 |
Marketable securities | 2 | 7 |
Receivables, less allowance of $2 in each period | 8 | 11 |
Prepaid expenses and other assets | 18 | 16 |
Total Current Assets | 510 | 461 |
Other Assets: | ||
Property and equipment, net | 55 | 51 |
Goodwill | 501 | 501 |
Intangible assets, net | 188 | 191 |
Operating lease right-of-use assets | 14 | 17 |
Deferred customer acquisition costs | 18 | 18 |
Other assets | 6 | 11 |
Total Assets | 1,291 | 1,250 |
Current Liabilities: | ||
Accounts payable | 55 | 48 |
Accrued liabilities: | ||
Payroll and related expenses | 12 | 17 |
Home service plan claims | 55 | 66 |
Interest payable | 3 | 9 |
Other | 38 | 29 |
Deferred revenue | 227 | 188 |
Current portion of long-term debt | 7 | 7 |
Total Current Liabilities | 398 | 364 |
Long-Term Debt | 972 | 973 |
Other Long-Term Liabilities: | ||
Deferred taxes | 41 | 45 |
Operating lease liabilities | 18 | 20 |
Other long-term obligations | 41 | 27 |
Total Other Long-Term Liabilities | 100 | 92 |
Commitments and Contingencies (Note 9) | ||
Shareholders' Equity: | ||
Common stock, $0.01 par value; 2,000,000,000 shares authorized; 85,381,109 shares issued and outstanding at March 31, 2020 and 85,309,260 shares issued and outstanding at December 31, 2019 | 1 | 1 |
Additional paid-in capital | 31 | 29 |
Accumulated deficit | (174) | (188) |
Accumulated other comprehensive loss | (36) | (21) |
Total Deficit | (178) | (179) |
Total Liabilities and Shareholders' Equity | $ 1,291 | $ 1,250 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Condensed Consolidated Statements of Financial Position [Abstract] | ||
Allowance for receivables (in dollars) | $ 2 | $ 2 |
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) | 85,381,109 | 85,309,260 |
Common stock, shares outstanding (in shares) | 85,381,109 | 85,309,260 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in (Deficit) Equity - USD ($) $ in Millions | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at beginning of period at Dec. 31, 2018 | $ 1 | $ 1 | $ (336) | $ (9) | |
Net income | 13 | $ 13 | |||
Stock-based employee compensation | 2 | ||||
Other comprehensive loss, net of tax | (5) | (5) | |||
Balance at end of period at Mar. 31, 2019 | 1 | 3 | (323) | (14) | (334) |
Balance at beginning of period at Dec. 31, 2019 | 1 | 29 | (188) | (21) | (179) |
Net income | 13 | 13 | |||
Stock-based employee compensation | 3 | ||||
Taxes paid related to net share settlement of equity awards | (1) | ||||
Other comprehensive loss, net of tax | (15) | (15) | |||
Balance at end of period at Mar. 31, 2020 | $ 1 | $ 31 | $ (174) | $ (36) | $ (178) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Consolidated Statements of Cash Flows [Abstract] | ||
Cash and Cash Equivalents at Beginning of Period | $ 428 | $ 296 |
Cash Flows from Operating Activities: | ||
Net Income | 13 | 13 |
Adjustments to reconcile net income to net cash provided from operating activities: | ||
Depreciation and amortization expense | 8 | 6 |
Stock-based compensation expense | 3 | 2 |
Restructuring charges | 3 | 0 |
Payments for restructuring charges | (3) | 0 |
Spin-off charges | 0 | 1 |
Payments for spin-off charges | 0 | (1) |
Other | 0 | 1 |
Change in working capital, net of acquisitions: | ||
Receivables | 3 | 4 |
Prepaid expenses and other current assets | 2 | 1 |
Accounts payable | 7 | 8 |
Deferred revenue | 40 | 34 |
Accrued liabilities | (15) | (10) |
Accrued interest payable | (6) | (6) |
Current income taxes | 4 | (1) |
Net Cash Provided from Operating Activities | 60 | 52 |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (8) | (4) |
Purchases of available-for-sale securities | (2) | 0 |
Sales and maturities of available-for-sale securities | 7 | 3 |
Other investing activities | 0 | (3) |
Net Cash Used for Investing Activities | (3) | (5) |
Cash Flows from Financing Activities: | ||
Payments of debt and finance lease obligations | (2) | (2) |
Other financing activities | (1) | 0 |
Net Cash Used for Financing Activities | (3) | (2) |
Cash Increase During the Period | 54 | 45 |
Cash and Cash Equivalents at End of Period | $ 482 | $ 341 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation References in this Quarterly Report on Form 10-Q to “Frontdoor,” “we,” “our,” or “us” refer to frontdoor, inc. and all of its subsidiaries. Frontdoor is a Delaware corporation with its principal executive offices in Memphis, Tennessee. Certain amounts presented in the tables in this report are subject to rounding adjustments and, as a result, the totals in such tables may not sum. We are the largest provider of home service plans in the U.S., as measured by revenue, and operate under the American Home Shield, HSA, OneGuard and Landmark brands. Our customizable home service plans 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 service plans cover the repair or replacement of major components of up to 21 household systems and appliances, including electrical, plumbing, central HVAC systems, water heaters, refrigerators, dishwashers and ranges/ovens/cooktops. In 2019, we launched our new on-demand home services business under the brand name Candu, and we acquired Streem, a technology startup that uses augmented reality, computer vision and machine learning to help home service professionals more quickly and accurately diagnose breakdowns and complete repairs and to help real estate professionals consult with and provide virtual tours to potential buyers and agents. We serve customers across all 50 states and the District of Columbia. We recommend that the accompanying condensed consolidated financial statements be read in conjunction with the audited consolidated and combined financial statements and the notes thereto included in our 2019 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 the financial position, results of operations and cash flows for the interim periods presented. The results of operations for any interim period are not indicative of the results that might be achieved for a full year. Impact of COVID-19 On March 11, 2020, the World Health Organization (“WHO”) characterized the recent novel coronavirus disease (“COVID-19”) as a pandemic, and on March 13, 2020, the U.S. declared a national emergency concerning the outbreak. The broader implications of COVID-19 on our results of operations and overall financial performance remain uncertain. In response to the pandemic, we took several steps to protect the well-being of our employees, customers and contractors, and we continue to respond to the real-time needs of our business. The COVID-19 situation remains very fluid, and we continue to adjust our response in real time. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | f Note 2. Significant Accounting Policies Our significant accounting policies are described in Note 2 to the audited consolidated and combined financial statements included in our 2019 Form 10-K. There have been no material changes to the significant accounting policies for the three months ended March 31, 2020. Adoption of New Accounting Standards In June 2016, the FASB issued ASU 2016-13, which was amended in parts by subsequent accounting standards updates (collectively ASC 326). This standard requires earlier recognition of credit losses while also providing additional transparency about credit risk. Further, the new credit loss model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. We adopted ASC 326 prospectively, effective January 1, 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this standard prospectively, effective January 1, 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. Accounting Standards Issued Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022, when the reference rate replacement activity is expected to be completed. We are currently evaluating its impact on our consolidated financial statements and related disclosures. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue [Abstract] | |
Revenue | Note 3. Revenue We enter into annual service plan agreements with our customers. We 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 value provided to the customer. As the costs to fulfill the obligations of the home service plans 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. This adjustment to the straight-line revenue creates a contract asset or contract liability, as described under the heading “Contract balances” below. We regularly review our estimates of claims costs and adjust our estimates when appropriate. We derive substantially all of our revenue from customers in the U.S. We disaggregate revenue from contracts with customers into major customer acquisition channels. We determined that disaggregating revenue into these categories achieves the disclosure objective to depict 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) 2020 2019 Renewals $ 200 $ 182 Real estate (1) 56 54 Direct-to-consumer (1) 35 33 Other 3 1 Total $ 294 $ 271 _____________________________ (1) First-year revenue only. Renewals Revenue from all customer renewals, whether initiated via the real estate or direct-to-consumer channel, are classified as renewals above. Customer payments for renewals are received either at the commencement of the renewal period or in installments over the contract period. Real estate Real estate home service plans are sold through annual contracts in connection with a real estate sale, and payments are typically paid in full at closing. First-year revenue from the real estate channel is classified as real estate above. Direct-to-consumer Direct-to-consumer home service plans are sold through annual contracts when customers request a service plan in response to marketing efforts or when third-party resellers make a sale. Customer payments are received either at the commencement of the contract or in installments over the contract period. First-year revenue from the direct-to-consumer channel is classified as direct-to-consumer above. Costs to obtain a contract with a customer We capitalize the incremental costs of obtaining a contract with a customer, primarily sales commissions, and recognize the 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 $ 18 million as of March 31, 2020 and December 31, 2019. Amortization of these deferred acquisition costs was $ 4 million for each of the three months ended March 31, 2020 and 2019. There were no impairment losses in relation to these capitalized costs. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Contracts with customers, including contracts resulting from customer renewals, are generally for a period of one year. We record a receivable related to revenue recognized on services once we have an unconditional right to invoice and receive payment in the future related to the services provided. All accounts receivable are recorded within Receivables, less allowances, in the accompanying condensed consolidated statements of financial position. We invoice our monthly-pay customers on a straight-line basis over the contract term. As a result, a contract asset is created when revenue is recognized on monthly-pay customers before being billed. Deferred revenue represents a contract liability and 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. Deferred revenue was $ 227 million and $ 188 million as of March 31, 2020 and December 31, 2019, respectively, and as of March 31, 2020, includes a net contract liability of $ 44 million related to the recognition of monthly pay-customer revenue on an other-than-straight-line basis to match the timing of cost recognition. Changes in deferred revenue for the three months ended March 31, 2020 were as follows: (In millions) Deferred Revenue Balance as of December 31, 2019 $ 188 Deferral of revenue 127 Recognition of deferred revenue ( 87 ) Balance as of March 31, 2020 $ 227 There was approximately $ 72 million of revenue recognized in the three months ended March 31, 2020 that was included in the deferred revenue balance as of December 31, 2019. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
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 by applying a fair-value-based test on an annual basis or more frequently if circumstances indicate a potential impairment. An assessment for impairment is performed on October 1 of every year. The balance of goodwill was $ 501 million as of March 31, 2020 and December 31, 2019. There were no goodwill or trade name impairment charges recorded in the three months ended March 31, 2020 and 2019. There were no accumulated impairment losses recorded as of March 31, 2020 and December 31, 2019. The table below summarizes the other intangible asset balances: As of March 31, 2020 As of December 31, 2019 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trade names (1) $ 141 $ — $ 141 $ 141 $ — $ 141 Customer relationships 173 ( 169 ) 5 173 ( 168 ) 5 Developed technology 34 ( 2 ) 31 34 ( 1 ) 33 Other 37 ( 26 ) 11 37 ( 25 ) 12 Total $ 385 $ ( 197 ) $ 188 $ 385 $ ( 193 ) $ 191 ___________________________________ (1) Not subject to amortization. Amortization expense was $ 3 million and $ 2 million for the three months ended March 31, 2020 and 2019, respectively. The following table outlines expected amortization expense for existing intangible assets for the remainder of 2020 and the next five years : (In millions) 2020 (remainder) $ 8 2021 10 2022 7 2023 6 2024 5 2025 5 Total $ 42 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 5. Leases We have operating leases primarily for corporate offices and call centers and finance leases for vehicles. Our leases have remaining lease terms of one year to 1 5 years, some of which include options to extend the leases for up to five years . Renewal options that are reasonably certain to be exercised are included in the lease term. An incremental borrowing rate is used in determining the present value of lease payments unless an implicit rate is readily determinable. Incremental borrowing rates are determined based on our secured borrowing rating and the lease term. Disclosures related to finance lease obligations are immaterial and, as such, are not included in the discussion below. The weighted average remaining lease term and weighted average discount rate related to operating leases is as follows: As of March 31, December 31, 2020 2019 Weighted-average remaining lease term (years) 11 10 Weighted-average discount rate 6.2 % 6.1 % We recognized operating lease expense of $ 1 million for each of the three months ended March 31, 2020 and 2019, respectively. These expenses are included in Selling and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income. For the three months ended March 31, 2020, and 2019, cash paid for amounts included in the measurement of lease liabilities were $ 3 million and $ 1 million, respectively, and are reflected in the accompanying condensed consolidated statements of cash flows. For the three months ended March 31, 2020, amounts i nclude $ 2 million of lease termination costs related to the decision to consolidate the operations of Landmark Home Warranty, LLC (“Landmark”) with those of OneGuard Home Warranties (“OneGuard”) . See Note 8 to the accompanying condensed consolidated financial statements for further information. Supplemental balance sheet information related to operating leases is as follows: As of March 31, December 31, (In millions) 2020 2019 Operating lease right-of-use assets $ 20 $ 23 Less lease incentives ( 6 ) ( 6 ) Operating lease right-of-use assets, net $ 14 $ 17 Other accrued liabilities $ 2 $ 3 Operating lease liabilities 18 20 Total operating lease liabilities $ 20 $ 23 The following table presents maturities of our operating lease liabilities as of March 31, 2020. (In millions) 2020 (remainder) $ 3 2021 3 2022 3 2023 3 2024 2 2025 1 Thereafter 12 Total lease payments 28 Less imputed interest ( 8 ) Total $ 20 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | Note 6. Income Taxes As required by ASC 740, 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. Our estimated tax rate is adjusted each quarter in accordance with ASC 740. The effective tax rate on income was 25.0 percent and 26.9 percent for the three months ended March 31, 2020 and 2019, respectively. The decrease in the effective tax rate is due to a decrease in non-deductible transaction costs. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in response to the COVID-19 pandemic. We do not expect the provisions of the legislation to have a significant impact on our effective tax rate or our income tax payable and deferred income tax positions. We are subject to taxation in the U.S., various states and foreign jurisdictions. Pursuant to the terms of the tax matters agreement entered into with ServiceMaster in connection with the Spin-off, we are not subject to federal examination by the IRS or examination by state taxing authorities where a unitary or combined state income tax return is filed for the years prior to 2018. We are not subject to state and local income tax examinations by tax authorities in jurisdictions where separate income tax returns are filed for the years prior to 2015. Substantially all of our income before income taxes for the three months ended March 31, 2020 and 2019 was generated in the U.S. Our policy is to recognize potential interest and penalties related to our tax positions within the tax provision. Total interest and penalties included in the accompanying condensed consolidated statements of operations and comprehensive income are immaterial. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Acquisitions [Abstract] | |
Acquisitions | Note 7. Acquisitions Business combinations have been accounted for using the acquisition method, and, accordingly, the results of operations of the acquired businesses have been included in the accompanying condensed consolidated financial statements since their dates of acquisition. The assets and liabilities of these businesses were recorded in the financial statements at their estimated fair values as of the acquisition dates. As discussed in our 2019 Form 10-K, we completed the acquisition of Streem in the fourth quarter of 2019. During the three months ended March 31, 2020, there were no changes to the purchase price allocation disclosed in our 2019 Form 10-K. As of March 31, 2020, the purchase price allocation for this acquisition has not been finalized. In particular, we are still evaluating the fair value of certain intangible assets. As we finalize the fair value of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period in 2020. No acquisitions occurred during the three months ended March 31, 2020. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Note 8. Restructuring Charges We incurred restructuring charges of $ 3 million ($ 2 million, net of tax) and less than $ 1 million (less than $ 1 million, net of tax) for the three months ended March 31, 2020 and 2019, respectively. For the three months ended March 31, 2020, restructuring charges comprised $ 2 million of lease termination costs and $ 1 million of severance and other costs related to the decision to consolidate the operations of Landmark with those of OneGuard, which was completed during the first quarter of 2020. For the three months ended March 31, 2019, restructuring charges comprised severance costs. The pre-tax charges discussed above are reported in “Restructuring charges” in the accompanying condensed consolidated statements of operations and comprehensive income. As of December 31, 2019, there was less than $ 1 million of restructuring charges accrued, which were paid or otherwise settled during the three months ended March 31, 2020. As of March 31, 2020, there was no remaining balance in accrued restructuring charges in the accompanying condensed consolidated statements of financial position. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 9. Commitments and Contingencies Accruals for home service plan 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 service plan 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 the use of actuarial methods 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 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, 2020 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 10. Stock-Based Compensation We recognized stock-based compensation expense of $ 3 million ($ 3 million, net of tax) and $ 2 million ($ 1 million, net of tax) for the three months ended March 31, 2020 and 2019, respectively. These charges are included in Selling and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income. As of March 31, 2020, there was $ 46 million of total unrecognized compensation costs, net of estimated forfeitures, related to unvested stock options, restricted stock units (“RSUs”), performance shares and restricted stock awards. These remaining costs are expected to be recognized over a weighted-average period of 2.95 years. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note 11. Long-Term Debt Long-term debt is summarized in the following table: As of March 31, December 31, (In millions) 2020 2019 Term Loan Facility maturing in 2025 (1) $ 633 $ 634 Revolving Credit Facility maturing in 2023 — — 2026 Notes (2) 345 345 Other 1 1 Less current portion ( 7 ) ( 7 ) Total long-term debt $ 972 $ 973 ___________________________________ (1) As of March 31, 2020 and December 31, 2019, presented net of $ 6 million and $ 7 million, respectively, in unamortized debt issuance costs and $ 1 million in unamortized original issue discount paid. (2) As of March 31, 2020 and December 31, 2019, presented net of $ 5 million in unamortized debt issuance costs. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note 12. Supplemental Cash Flow Information Supplemental information relating to the accompanying condensed consolidated statements of cash flows is presented in the following table: Three Months Ended March 31, (In millions) 2020 2019 Cash paid for (received from): Interest expense $ 20 $ 21 Income tax payments, net of refunds — 6 Interest income ( 2 ) ( 1 ) |
Cash and Marketable Securities
Cash and Marketable Securities | 3 Months Ended |
Mar. 31, 2020 | |
Cash and Marketable Securities [Abstract] | |
Cash and Marketable Securities | Note 13. Cash and Marketable Securities Cash, money market funds and certificates of deposit with maturities of three months or less when purchased are included in Cash and cash equivalents in the accompanying condensed consolidated statements of financial position. As of March 31, 2020 and December 31, 2019, marketable securities primarily consisted of treasury bills with maturities of less than one year and are classified as available-for-sale securities. As of March 31, 2020 and December 31, 2019, the amortized cost of our short-term investments was $ 2 million and $ 7 million, respectively, and the estimated fair value of these investments was $ 2 million and $ 7 million, respectively. There were no unrealized losses which had been in a loss position for more than one year as of March 31, 2020 and December 31, 2019. Gains and losses on sales of investments, as determined on a specific identification basis, are included in investment income in the period they are realized. For the three months ended March 31, 2020 and 2019, there were no gross realized gains, gross realized losses or proceeds resulting from sales of available-for-sale securities. Maturities of available-for-sale securities were $ 7 million and $ 3 million for the three months ended March 31, 2020 and 2019, respectively. We periodically review our portfolio of investments to determine whether there has been an other-than-temporary decline in the value of the investments from factors such as deterioration in the financial condition of the issuer or the market(s) in which the issuer competes. There were no impairment charges due to declines in the value of these investments for the three months ended March 31, 2020 and 2019. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) | Note 14. Comprehensive Income (Loss) Comprehensive income (loss), which includes net income (loss), unrealized gain (loss) on derivative instruments and unrealized gain (loss) on marketable securities, is disclosed in the accompanying condensed consolidated statements of operations and comprehensive income and condensed consolidated statements of changes in equity. The following tables summarize the activity in AOCI, net of the related tax effects. Unrealized Loss (In millions) on Derivatives Total Balance as of December 31, 2019 $ ( 21 ) $ ( 21 ) Other comprehensive income (loss) before reclassifications: Pre-tax amount ( 21 ) ( 21 ) Tax provision (benefit) ( 5 ) ( 5 ) After-tax amount ( 16 ) ( 16 ) Amounts reclassified from accumulated other comprehensive income (loss) (1) 1 1 Net current period other comprehensive income (loss) ( 15 ) ( 15 ) Balance as of March 31, 2020 $ ( 36 ) $ ( 36 ) Balance as of December 31, 2018 $ ( 9 ) $ ( 9 ) Other comprehensive income (loss) before reclassifications: Pre-tax amount ( 7 ) ( 6 ) Tax provision (benefit) ( 1 ) ( 1 ) After-tax amount ( 5 ) ( 5 ) Amounts reclassified from accumulated other comprehensive income (loss) (1) — — Net current period other comprehensive income (loss) ( 5 ) ( 5 ) Balance as of March 31, 2019 $ ( 14 ) $ ( 14 ) ___________________________________ (1) Amounts are net of tax. See reclassifications out of AOCI below for further details. Reclassifications out of AOCI included the following components for the periods indicated. Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) As of March 31, Consolidated Statements of (In millions) 2020 2019 Operations and Comprehensive Income Location Loss on interest rate swap contract $ ( 1 ) $ ( 1 ) Interest expense Impact of income taxes — — Provision for income taxes Total reclassifications related to derivatives $ ( 1 ) $ — Total reclassifications for the period $ ( 1 ) $ — |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note 15. Derivative Financial Instruments We currently use a derivative financial instrument to manage risks associated with changes in interest rates. 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. We hedge the interest payments on a portion of our variable rate debt through the use of an interest rate swap agreement. Our interest rate swap contract is classified as a cash flow hedge, and, as such, it is recorded on the accompanying condensed consolidated statements of financial position as either an asset or liability at fair value, with the effective portion of changes in the fair value attributable to the hedged risks recorded in AOCI. Any change in the fair value of the hedging instrument resulting from ineffectiveness, as defined by accounting standards, is recognized in current period earnings. 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 14 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. As the underlying forecasted transactions occur during the next 12 months, the unrealized hedging loss in AOCI expected to be recognized in earnings is $ 7 million, net of tax, as of March 31, 2020. The amounts that are ultimately reclassified into earnings will be based on actual interest rates at the time the positions are settled and may differ materially from the amount noted above. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 16. 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 the business categorizes using 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 fair value because of the short maturity of these instruments. The period-end carrying amount of short-term marketable securities also approximates fair value and consists of available-for-sale debt securities. Unrealized gains and losses are reported net of tax as a component of AOCI in the accompanying condensed consolidated statements of financial position. Any unrealized losses where the decline in value is other than temporary are reported in Interest and net investment income in the accompanying condensed consolidated statements of operations and comprehensive income. There were no other-than-temporary declines in value for the three months ended March 31, 2020 and 2019. The carrying amount of total debt was $ 979 million and $ 980 million, and the estimated fair value was $ 944 million and $ 1,031 million as of March 31, 2020 and December 31, 2019, respectively. The fair value of our debt is 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. The fair values presented reflect the amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value estimates presented in this report are based on information available to us as of March 31, 2020 and December 31, 2019. We value 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 the 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 year. Transfers between levels, if any, are recognized at the end of the reporting period. There were no transfers between levels during the three months ended March 31, 2020 and 2019. The carrying amount and estimated fair value of our financial instruments that are recorded at fair value on a recurring basis for the periods presented are as follows: Estimated Fair Value Measurements (In millions) Statement of Financial Position Location Carrying Value Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of March 31, 2020: Financial Assets: Investments in marketable securities Marketable securities $ 2 $ 2 $ — $ — Total financial assets $ 2 $ 2 $ — $ — Financial Liabilities: Interest rate swap contract Other accrued liabilities $ 10 $ — $ 10 $ — Other long-term obligations 37 — 37 — Total financial liabilities $ 46 $ — $ 46 $ — As of December 31, 2019: Financial Assets: Investments in marketable securities Marketable securities $ 7 $ 7 $ — $ — Total financial assets $ 7 $ 7 $ — $ — Financial Liabilities: Interest rate swap contract Other accrued liabilities $ 5 $ — $ 5 $ — Other long-term obligations 22 — 22 — Total financial liabilities $ 27 $ — $ 27 $ — |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 17. 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 potential dilutive shares of common stock been issued. The dilutive effect of stock options, RSUs , performance shares and restricted stock awards are reflected in diluted net income per share by applying the treasury stock method. Basic and diluted earnings per share are calculated as follows: Three Months Ended March 31, (In millions, except per share data) 2020 2019 Net Income $ 13 $ 13 Weighted-average common shares outstanding 85.1 84.6 Effect of dilutive securities: RSUs 0.1 0.1 Stock options (1) 0.1 — Weighted-average common shares outstanding - assuming dilution 85.4 84.7 Basic earnings per share $ 0.15 $ 0.15 Diluted earnings per share $ 0.15 $ 0.15 ___________________________________ (1) Options to purchase 0.3 million shares and 0.2 million shares for the three months ended March 31, 2020 and 2019, 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, 2020 | |
Significant Accounting Policies [Abstract] | |
Newly Issued Accounting Standards | Adoption of New Accounting Standards In June 2016, the FASB issued ASU 2016-13, which was amended in parts by subsequent accounting standards updates (collectively ASC 326). This standard requires earlier recognition of credit losses while also providing additional transparency about credit risk. Further, the new credit loss model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. We adopted ASC 326 prospectively, effective January 1, 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this standard prospectively, effective January 1, 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. |
Accounting Standards Issued But Not Yet Effective | Accounting Standards Issued Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022, when the reference rate replacement activity is expected to be completed. We are currently evaluating its impact on our consolidated financial statements and related disclosures. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue [Abstract] | |
Disaggregation Of Revenue | ___ Three Months Ended March 31, (In millions) 2020 2019 Renewals $ 200 $ 182 Real estate (1) 56 54 Direct-to-consumer (1) 35 33 Other 3 1 Total $ 294 $ 271 _____________________________ (1) First-year revenue only. |
Movement In Deferred Revenue | (In millions) Deferred Revenue Balance as of December 31, 2019 $ 188 Deferral of revenue 127 Recognition of deferred revenue ( 87 ) Balance as of March 31, 2020 $ 227 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule Of Other Intangible Asset Balances For Continuing Operations | As of March 31, 2020 As of December 31, 2019 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trade names (1) $ 141 $ — $ 141 $ 141 $ — $ 141 Customer relationships 173 ( 169 ) 5 173 ( 168 ) 5 Developed technology 34 ( 2 ) 31 34 ( 1 ) 33 Other 37 ( 26 ) 11 37 ( 25 ) 12 Total $ 385 $ ( 197 ) $ 188 $ 385 $ ( 193 ) $ 191 ___________________________________ (1) Not subject to amortization. |
Schedule Of Expected Amortization Expense For Intangible Assets | (In millions) 2020 (remainder) $ 8 2021 10 2022 7 2023 6 2024 5 2025 5 Total $ 42 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Weighted Average Remainig Lease Term And Discount Rate | As of March 31, December 31, 2020 2019 Weighted-average remaining lease term (years) 11 10 Weighted-average discount rate 6.2 % 6.1 % |
Supplemental Balance Sheet Information Related To Leases | As of March 31, December 31, (In millions) 2020 2019 Operating lease right-of-use assets $ 20 $ 23 Less lease incentives ( 6 ) ( 6 ) Operating lease right-of-use assets, net $ 14 $ 17 Other accrued liabilities $ 2 $ 3 Operating lease liabilities 18 20 Total operating lease liabilities $ 20 $ 23 |
Maturities Of Lease Liabilities | (In millions) 2020 (remainder) $ 3 2021 3 2022 3 2023 3 2024 2 2025 1 Thereafter 12 Total lease payments 28 Less imputed interest ( 8 ) Total $ 20 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Long-Term Debt [Abstract] | |
Schedule Of Long-Term Debt | As of March 31, December 31, (In millions) 2020 2019 Term Loan Facility maturing in 2025 (1) $ 633 $ 634 Revolving Credit Facility maturing in 2023 — — 2026 Notes (2) 345 345 Other 1 1 Less current portion ( 7 ) ( 7 ) Total long-term debt $ 972 $ 973 ___________________________________ (1) As of March 31, 2020 and December 31, 2019, presented net of $ 6 million and $ 7 million, respectively, in unamortized debt issuance costs and $ 1 million in unamortized original issue discount paid. (2) As of March 31, 2020 and December 31, 2019, presented net of $ 5 million in unamortized debt issuance costs. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule Of Supplemental Information Relating To The Accompanying Condensed Consolidated Statements Of Cash Flows | Three Months Ended March 31, (In millions) 2020 2019 Cash paid for (received from): Interest expense $ 20 $ 21 Income tax payments, net of refunds — 6 Interest income ( 2 ) ( 1 ) |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Comprehensive Income (Loss) [Abstract] | |
Summary Of The Activity In AOCI, Net Of The Related Tax Effects | Unrealized Loss (In millions) on Derivatives Total Balance as of December 31, 2019 $ ( 21 ) $ ( 21 ) Other comprehensive income (loss) before reclassifications: Pre-tax amount ( 21 ) ( 21 ) Tax provision (benefit) ( 5 ) ( 5 ) After-tax amount ( 16 ) ( 16 ) Amounts reclassified from accumulated other comprehensive income (loss) (1) 1 1 Net current period other comprehensive income (loss) ( 15 ) ( 15 ) Balance as of March 31, 2020 $ ( 36 ) $ ( 36 ) Balance as of December 31, 2018 $ ( 9 ) $ ( 9 ) Other comprehensive income (loss) before reclassifications: Pre-tax amount ( 7 ) ( 6 ) Tax provision (benefit) ( 1 ) ( 1 ) After-tax amount ( 5 ) ( 5 ) Amounts reclassified from accumulated other comprehensive income (loss) (1) — — Net current period other comprehensive income (loss) ( 5 ) ( 5 ) Balance as of March 31, 2019 $ ( 14 ) $ ( 14 ) ___________________________________ (1) Amounts are net of tax. See reclassifications out of AOCI below for further details. |
Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) As of March 31, Consolidated Statements of (In millions) 2020 2019 Operations and Comprehensive Income Location Loss on interest rate swap contract $ ( 1 ) $ ( 1 ) Interest expense Impact of income taxes — — Provision for income taxes Total reclassifications related to derivatives $ ( 1 ) $ — Total reclassifications for the period $ ( 1 ) $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 | Estimated Fair Value Measurements (In millions) Statement of Financial Position Location Carrying Value Quoted Prices In Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of March 31, 2020: Financial Assets: Investments in marketable securities Marketable securities $ 2 $ 2 $ — $ — Total financial assets $ 2 $ 2 $ — $ — Financial Liabilities: Interest rate swap contract Other accrued liabilities $ 10 $ — $ 10 $ — Other long-term obligations 37 — 37 — Total financial liabilities $ 46 $ — $ 46 $ — As of December 31, 2019: Financial Assets: Investments in marketable securities Marketable securities $ 7 $ 7 $ — $ — Total financial assets $ 7 $ 7 $ — $ — Financial Liabilities: Interest rate swap contract Other accrued liabilities $ 5 $ — $ 5 $ — Other long-term obligations 22 — 22 — Total financial liabilities $ 27 $ — $ 27 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share | Three Months Ended March 31, (In millions, except per share data) 2020 2019 Net Income $ 13 $ 13 Weighted-average common shares outstanding 85.1 84.6 Effect of dilutive securities: RSUs 0.1 0.1 Stock options (1) 0.1 — Weighted-average common shares outstanding - assuming dilution 85.4 84.7 Basic earnings per share $ 0.15 $ 0.15 Diluted earnings per share $ 0.15 $ 0.15 ___________________________________ (1) Options to purchase 0.3 million shares and 0.2 million shares for the three months ended March 31, 2020 and 2019, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive. |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020stateitem | |
Basis of Presentation [Abstract] | |
Number of systems or appliances covered under service plans | item | 21 |
Number of States in which Entity Operates | state | 50 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue [Abstract] | |||
Capitalized Contract Cost, Net | $ 18 | $ 18 | |
Capitalized Contract Cost, Amortization | 4 | $ 4 | |
Capitalized Contract Cost, Impairment Loss | 0 | ||
Deferred revenue | 227 | $ 188 | |
Contract With Customer Asset (Liability), Net | 44 | ||
Revenue recognized | $ 72 |
Revenue (Disaggregation Of Reve
Revenue (Disaggregation Of Revenue From Contracts With Customers) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | |||
Reportable segment revenues | $ 294 | $ 271 | |
Renewals [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Reportable segment revenues | 200 | 182 | |
Real Estate [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Reportable segment revenues | [1] | 56 | 54 |
Direct-To-Consumer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Reportable segment revenues | [1] | 35 | 33 |
Service, Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Reportable segment revenues | $ 3 | $ 1 | |
[1] | First-year revenue only. |
Revenue (Movement In Deferred R
Revenue (Movement In Deferred Revenue) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue [Abstract] | |
Balance as of December 31, 2019 | $ 188 |
Deferral of revenue | 127 |
Recognition of deferred revenue | (87) |
Balance as of March 31, 2020 | $ 227 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 501,000,000 | $ 501,000,000 | |
Goodwill impairment charges | 0 | $ 0 | |
Accumulated impairment loss | 0 | $ 0 | |
Amortization expense | 3,000,000 | 2,000,000 | |
Trade Names [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible asset impairment charges | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule Of Other Intangible Asset Balances For Continuing Operations) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Finite Lived and Indefinite Lived Intangible Assets by Major Class [Line Items] | |||
Gross | $ 385 | $ 385 | |
Accumulated Amortization | (197) | (193) | |
Net | 188 | 191 | |
Customer-Relationships [Member] | |||
Finite Lived and Indefinite Lived Intangible Assets by Major Class [Line Items] | |||
Gross | 173 | 173 | |
Accumulated Amortization | (169) | (168) | |
Net | 5 | 5 | |
Developed Technology [Member] | |||
Finite Lived and Indefinite Lived Intangible Assets by Major Class [Line Items] | |||
Gross | 34 | 34 | |
Accumulated Amortization | (2) | (1) | |
Net | 31 | 33 | |
Other [Member] | |||
Finite Lived and Indefinite Lived Intangible Assets by Major Class [Line Items] | |||
Gross | 37 | 37 | |
Accumulated Amortization | (26) | (25) | |
Net | 11 | 12 | |
Trade Names [Member] | |||
Finite Lived and Indefinite Lived Intangible Assets by Major Class [Line Items] | |||
Gross | [1] | 141 | 141 |
Accumulated Amortization | [1] | ||
Net | [1] | $ 141 | $ 141 |
[1] | Not subject to amortization. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule Of Expected Amortization Expense For Intangible Assets) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Goodwill and Intangible Assets [Abstract] | |
2020 (remainder) | $ 8 |
2021 | 10 |
2022 | 7 |
2023 | 6 |
2024 | 5 |
2025 | 5 |
Total | $ 42 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 1 | $ 1 |
Lease termination cost | 2 | |
Cash paid for amounts included in the measurement of lease liabilities | $ 3 | $ 1 |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Leases, Remaining Lease Term Years | 15 years | |
Leases, Renewal Term | 5 years | |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Leases, Remaining Lease Term Years | 1 year |
Leases (Weighted Average Remain
Leases (Weighted Average Remainig Lease Term And Discount Rate) (Details) | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term: Operating leases | 11 years | 10 years |
Weighted average discount rate: Operating leases | 6.20% | 6.10% |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Related To Lease) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 20 | $ 23 |
Less lease incentives | (6) | (6) |
Operating lease right-of-use asset, net | 14 | 17 |
Other accrued liabilities | 2 | 3 |
Operating lease liabilities | 18 | 20 |
Total operating lease liabilities | $ 20 | $ 23 |
Leases (Maturities Of Lease Lia
Leases (Maturities Of Lease Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (remainder) | $ 3 | |
2021 | 3 | |
2022 | 3 | |
2023 | 3 | |
2024 | 2 | |
2025 | 1 | |
Thereafter | 12 | |
Total lease payments | 28 | |
Less imputed interest | (8) | |
Total | $ 20 | $ 23 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Taxes [Abstract] | ||
Effective tax rate on income from continuing operations (as a percent) | 25.00% | 26.90% |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 3 | $ 0 | |
Restructuring charges, net of tax | 2 | ||
Lease termination cost | 2 | ||
Severance Costs | 1 | ||
Restructuring Reserve | $ 0 | ||
Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1 | ||
Restructuring charges, net of tax | $ 1 | ||
Restructuring Reserve | $ 1 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock-Based Compensation [Abstract] | ||
Stock-based compensation expense | $ 3 | $ 2 |
Stock-based compensation expense, net of tax | 3 | $ 1 |
Total unrecognized compensation costs related to non-vested stock options, restricted share units and performance shares | $ 46 | |
Weighted-average period of recognition of stock-based compensation cost | 2 years 11 months 12 days |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Long-term debt [Line Items] | |||
Less current portion | $ (7) | $ (7) | |
Total long-term debt | 972 | 973 | |
Term Loan Facility Maturing In 2025 [Member] | Secured Debt [Member] | |||
Long-term debt [Line Items] | |||
Long-term debt | [1] | 633 | 634 |
Unamortized debt issuance costs | 6 | 7 | |
Unamortized original issue discount | 1 | 1 | |
Revolving Credit Facility Maturing In 2023 [Member] | |||
Long-term debt [Line Items] | |||
Long-term debt | 0 | 0 | |
2026 Notes [Member] | Loans Payable [Member] | |||
Long-term debt [Line Items] | |||
Long-term debt | [2] | 345 | 345 |
Unamortized debt issuance costs | 5 | 5 | |
Other | |||
Long-term debt [Line Items] | |||
Long-term debt | $ 1 | $ 1 | |
[1] | As of March 31, 2020 and December 31, 2019, presented net of $ 6 million and $ 7 million, respectively, in unamortized debt issuance costs and $ 1 million in unamortized original issue discount paid. | ||
[2] | As of March 31, 2020 and December 31, 2019, presented net of $ 5 million in unamortized debt issuance costs. |
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 ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for or (received from): | ||
Interest expense | $ 20 | $ 21 |
Income tax payments, net of refunds | 6 | |
Interest income | $ (2) | $ (1) |
Cash and Marketable Securities
Cash and Marketable Securities (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Cash and Marketable Securities [Abstract] | |||
Amortized cost of securities | $ 2,000,000 | $ 7,000,000 | |
Fair value of securities | 2,000,000 | 7,000,000 | |
Impairment charges due to declines in the vale of debt securities | 0 | $ 0 | |
Unrealized losses on marketable securities | 0 | $ 0 | |
Gross unrealized gains of securities | 0 | 0 | |
Gross unrealized losses of securities | 0 | 0 | |
Proceeds from sale of available-for-sale securities | 0 | 0 | |
Maturities of available-for-sale securities | $ 7,000,000 | $ 3,000,000 |
Comprehensive Income (Loss) (Su
Comprehensive Income (Loss) (Summary Of The Activity In AOCI, Net Of The Related Tax Effects) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at the beginning of period | $ (21) | $ (9) | |
Other comprehensive income (loss) before reclassifications: | |||
Pre-tax amount | (21) | (6) | |
Tax provision (benefit) | (5) | (1) | |
After-tax amount | (16) | (5) | |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 1 | 0 |
Net current period other comprehensive income (loss) | (15) | (5) | |
Balance at the end of period | (36) | (14) | |
Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at the beginning of period | (21) | (9) | |
Other comprehensive income (loss) before reclassifications: | |||
Pre-tax amount | (21) | (7) | |
Tax provision (benefit) | (5) | (1) | |
After-tax amount | (16) | (5) | |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 1 | 0 |
Net current period other comprehensive income (loss) | (15) | (5) | |
Balance at the end of period | $ (36) | $ (14) | |
[1] | Amounts are net of tax. See reclassifications out of AOCI below for further details. |
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, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (15) | $ (16) |
Interest and net investment income | 2 | 1 |
Provision for income taxes | (4) | (5) |
Net Income | 13 | 13 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net Income | (1) | 0 |
Unrealized Gains (Losses) on Derivatives | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | (1) | (1) |
Provision for income taxes | 0 | 0 |
Net Income | $ (1) | $ 0 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Derivative Financial Instruments [Abstract] | |
Hedging loss in accumulated other comprehensive income expected to be recognized in earnings, net of tax | $ 7 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fair Value Measurements [Abstract] | |||
Other than Temporary Impairment Losses, Investments | $ 0 | $ 0 | |
Carrying amount of total debt | 979,000,000 | $ 980,000,000 | |
Fair value of total debt | 944,000,000 | $ 1,031,000,000 | |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | $ 0 | $ 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, 2020 | Dec. 31, 2019 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in marketable securities | $ 2 | $ 7 |
Total financial assets | 2 | 7 |
Total financial liabilities | 46 | 27 |
Carrying Value [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap contracts | 10 | 5 |
Carrying Value [Member] | Other Long-Term Obligation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap contracts | 37 | 22 |
Estimated Fair Value [Member] | Quoted Price In Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in marketable securities | 2 | 7 |
Total financial assets | 2 | 7 |
Total financial liabilities | 0 | 0 |
Estimated Fair Value [Member] | Quoted Price In Active Markets (Level 1) [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap contracts | 0 | 0 |
Estimated Fair Value [Member] | Quoted Price In Active Markets (Level 1) [Member] | Other Long-Term Obligation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap contracts | 0 | 0 |
Estimated Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in marketable securities | 0 | 0 |
Total financial assets | 0 | 0 |
Total financial liabilities | 46 | 27 |
Estimated Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap contracts | 10 | 5 |
Estimated Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Long-Term Obligation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap contracts | 37 | 22 |
Estimated Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in marketable securities | 0 | 0 |
Total financial assets | 0 | 0 |
Total financial liabilities | 0 | 0 |
Estimated Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap contracts | 0 | 0 |
Estimated Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Long-Term Obligation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap contracts | $ 0 | $ 0 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income | $ 13 | $ 13 | |
Weighted-average common shares outstanding | 85.1 | 84.6 | |
Weighted average common shares outstanding - assuming dilution | 85.4 | 84.7 | |
Basic earnings per share (in dollars per share) | $ 0.15 | $ 0.15 | |
Diluted earnings per share (in dollars per share) | $ 0.15 | $ 0.15 | |
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 0.3 | 0.2 | |
RSU | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Effect of dilutive securities | 0.1 | 0.1 | |
Options | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Effect of dilutive securities | [1] | 0.1 | 0 |
[1] | Options to purchase 0.3 million shares and 0.2 million shares for the three months ended March 31, 2020 and 2019, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive. |