Large accelerated filer | Accelerated filer | Non-accelerated filer (Do not check if a smaller reporting company) | Smaller reporting company | Emerging growth company | |||||
Realogy Holdings Corp. | þ | ¨ | ¨ | ¨ | ¨ | ||||
Realogy Group LLC | ¨ | ¨ | þ | ¨ | ¨ |
Page | ||
PART I | FINANCIAL INFORMATION | |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 1. | ||
Item 2. | ||
Item 5. | ||
Item 6. | ||
• | risks related to general business, economic, employment and political conditions and the U.S. residential real estate markets, either regionally or nationally, including but not limited to: |
◦ | a lack of improvement or a decline in the number of homesales, stagnant or declining home prices and/or a deterioration in other economic factors that particularly impact the residential real estate market and the business segments in which we operate; |
◦ | increasing mortgage rates and/or constraints on the availability of mortgage financing; |
◦ | insufficient or excessive home inventory levels by market and price point; |
◦ | a decrease in consumer confidence; |
◦ | the impact of recessions, slow economic growth, disruptions in the U.S. government or banking system, disruptions in a major geoeconomic region, or equity or commodity markets and high levels of unemployment in the U.S. and abroad, which may impact all or a portion of the housing markets in which we and our franchisees operate; |
◦ | legislative, tax or regulatory changes (including changes in regulatory interpretations or enforcement practices) that would adversely impact the residential real estate market, including changes relating to the Real Estate Settlement Procedures Act ("RESPA"), potential reforms of Fannie Mae and Freddie Mac, immigration reform, and potential tax code reform; |
◦ | a decrease in housing affordability; |
◦ | high levels of foreclosure activity; |
◦ | changing attitudes towards home ownership, particularly among potential first-time homebuyers who may delay, or decide not to, purchase a home, as well as the potential impact of decisions to rent versus purchase a home; and |
◦ | the inability or unwillingness of current homeowners to purchase their next home due to various factors, including limited or negative equity in their current home, difficult mortgage underwriting standards, attractive rates on existing mortgages and the lack of available inventory in their market; |
• | increased competition whether through traditional competitors or competitors with alternative business models, including companies employing technologies intended to disrupt the traditional brokerage model, as well as eliminating brokers or agents from, or minimizing the role they play in, the homesale transaction; |
• | competition for more productive sales associates, sales associate teams, and manager talent may continue to impact the ability of our company owned brokerage business and our affiliated franchisees to attract and retain independent sales associates, either individually or as members of a team, without significantly impacting the commission split rates currently paid by our company owned brokerages and our affiliated franchisees; |
• | our geographic and high-end market concentration, particularly with respect to our company owned brokerage operations; |
• | our inability to enter into franchise agreements with new franchisees at current net effective royalty rates, or to realize royalty revenue growth from them; |
• | our inability to renew existing franchise agreements at current net effective royalty rates or without increasing the amount and prevalence of non-standard incentives, or to maintain or enhance our value proposition to franchisees; |
• | the lack of revenue growth or declining profitability of our franchisees and company owned brokerage operations, including the impact of lower average broker commission rates; |
• | disputes or issues with entities that license us their tradenames for use in our business that could impede our franchising of those brands; |
• | actions by our franchisees that could harm our business or reputation, non-performance of our franchisees, controversies with our franchisees or actions against us by their independent sales associates or employees or third parties with which our franchisees have business relationships; |
• | loss, attrition or changes among our senior executives, other key employees or our inability to recruit top talent; |
• | our inability to achieve or maintain cost savings and other benefits from our restructuring activities; |
• | our inability to realize the benefits from acquisitions due to the loss of key personnel or productive agents of the acquired companies, as well as the possibility that expected benefits and synergies of the transactions may not be achieved in a timely manner or at all; |
• | our failure or alleged failure to comply with laws, regulations and regulatory interpretations and any changes in laws and regulations or stricter interpretations of regulatory requirements, including but not limited to (1) state or federal employment laws or regulations that would require reclassification of independent contractor sales associates to employee status, (2) RESPA or state consumer protection or similar laws and (3) privacy or data security laws and regulations; |
• | any adverse resolution of litigation, governmental or regulatory proceedings or arbitration awards as well as any adverse impact of decisions to voluntarily modify business arrangements or enter into settlement agreements to avoid the risk of protracted and costly litigation or other proceedings; |
• | our inability to obtain new technologies and systems, to replace or introduce new technologies and systems as quickly as our competitors and in a cost-effective manner or to achieve the benefits anticipated from new technologies or systems; |
• | the failure or significant disruption of our operations from various causes related to our critical information technologies and systems including cybersecurity threats to our data and customer, franchisee and independent sales associate data as well as reputational or financial risks associated with a loss of any such data; |
• | risks related to our international operations, including compliance with the Foreign Corrupt Practices Act and similar anti-corruption laws as well as risks relating to the master franchisor model that we deploy internationally; |
• | risks associated with our substantial indebtedness and interest obligations and restrictions contained in our debt agreements, including risks relating to having to dedicate a significant portion of our cash flows from operations to service our debt; |
• | risks relating to our ability to refinance or repay our indebtedness, incur additional indebtedness or return capital to stockholders; |
• | changes in corporate relocation practices resulting in fewer employee relocations, reduced relocation benefits or the loss of one or more significant affinity clients; |
• | an increase in the claims rate of our title underwriter and an increase in mortgage rates could adversely impact the revenue of our title and settlement services segment; |
• | our inability to securitize certain assets of our relocation business, which would require us to find an alternative source of liquidity that may not be available, or if available, may not be on favorable terms; |
• | risks that could materially adversely impact our equity investment in our mortgage origination joint venture, including increases in mortgage rates, the impact of joint venture operational or liquidity risks, the impact of a transition from our current joint venture to our new joint venture, regulatory changes, litigation, investigations and inquiries or any termination of the venture; |
• | any remaining resolutions or outcomes with respect to contingent liabilities of our former parent, Cendant Corporation ("Cendant"), under the Separation and Distribution Agreement and the Tax Sharing Agreement (each as described in our Annual Report on Form 10-K for the year ended December 31, 2016, the "2016 Form 10-K"), including any adverse impact on our future cash flows; and |
• | new types of taxes or increases in state, local or federal taxes that could diminish profitability or liquidity. |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Revenues | |||||||
Gross commission income | $ | 881 | $ | 826 | |||
Service revenue | 194 | 190 | |||||
Franchise fees | 75 | 69 | |||||
Other | 53 | 49 | |||||
Net revenues | 1,203 | 1,134 | |||||
Expenses | |||||||
Commission and other agent-related costs | 605 | 558 | |||||
Operating | 376 | 367 | |||||
Marketing | 62 | 58 | |||||
General and administrative | 96 | 86 | |||||
Former parent legacy costs, net | — | 1 | |||||
Restructuring costs | 5 | 9 | |||||
Depreciation and amortization | 50 | 48 | |||||
Interest expense, net | 39 | 73 | |||||
Loss on the early extinguishment of debt | 4 | — | |||||
Total expenses | 1,237 | 1,200 | |||||
Loss before income taxes, equity in losses and noncontrolling interests | (34 | ) | (66 | ) | |||
Income tax benefit | (9 | ) | (24 | ) | |||
Equity in losses of unconsolidated entities | 3 | — | |||||
Net loss | (28 | ) | (42 | ) | |||
Less: Net income attributable to noncontrolling interests | — | — | |||||
Net loss attributable to Realogy Holdings and Realogy Group | $ | (28 | ) | $ | (42 | ) | |
Loss per share attributable to Realogy Holdings: | |||||||
Basic loss per share | $ | (0.20 | ) | $ | (0.29 | ) | |
Diluted loss per share | $ | (0.20 | ) | $ | (0.29 | ) | |
Weighted average common and common equivalent shares of Realogy Holdings outstanding: | |||||||
Basic | 139.7 | 146.5 | |||||
Diluted | 139.7 | 146.5 | |||||
Cash dividends declared per share (beginning in August 2016) | $ | 0.09 | $ | — |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Net loss | $ | (28 | ) | $ | (42 | ) | |
Currency translation adjustment | 1 | — | |||||
Other comprehensive income, before tax | 1 | — | |||||
Income tax expense related to items of other comprehensive income | — | — | |||||
Other comprehensive income, net of tax | 1 | — | |||||
Comprehensive loss | (27 | ) | (42 | ) | |||
Less: comprehensive income attributable to noncontrolling interests | — | — | |||||
Comprehensive loss attributable to Realogy Holdings and Realogy Group | $ | (27 | ) | $ | (42 | ) |
March 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 205 | $ | 274 | |||
Trade receivables (net of allowance for doubtful accounts of $12 and $13) | 147 | 152 | |||||
Relocation receivables | 223 | 244 | |||||
Other current assets | 158 | 148 | |||||
Total current assets | 733 | 818 | |||||
Property and equipment, net | 270 | 267 | |||||
Goodwill | 3,691 | 3,690 | |||||
Trademarks | 748 | 748 | |||||
Franchise agreements, net | 1,344 | 1,361 | |||||
Other intangibles, net | 304 | 313 | |||||
Other non-current assets | 240 | 224 | |||||
Total assets | $ | 7,330 | $ | 7,421 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 125 | $ | 140 | |||
Securitization obligations | 172 | 205 | |||||
Due to former parent | 29 | 28 | |||||
Current portion of long-term debt | 355 | 242 | |||||
Accrued expenses and other current liabilities | 400 | 435 | |||||
Total current liabilities | 1,081 | 1,050 | |||||
Long-term debt | 3,256 | 3,265 | |||||
Deferred income taxes | 379 | 389 | |||||
Other non-current liabilities | 239 | 248 | |||||
Total liabilities | 4,955 | 4,952 | |||||
Commitments and contingencies (Notes 8 and 10) | |||||||
Equity: | |||||||
Realogy Holdings preferred stock: $.01 par value; 50,000,000 shares authorized, none issued and outstanding at March 31, 2017 and December 31, 2016 | — | — | |||||
Realogy Holdings common stock: $.01 par value; 400,000,000 shares authorized, 138,733,646 shares outstanding at March 31, 2017 and 140,227,692 shares outstanding at December 31, 2016 | 1 | 1 | |||||
Additional paid-in capital | 5,499 | 5,565 | |||||
Accumulated deficit | (3,090 | ) | (3,062 | ) | |||
Accumulated other comprehensive loss | (39 | ) | (40 | ) | |||
Total stockholders' equity | 2,371 | 2,464 | |||||
Noncontrolling interests | 4 | 5 | |||||
Total equity | 2,375 | 2,469 | |||||
Total liabilities and equity | $ | 7,330 | $ | 7,421 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Operating Activities | |||||||
Net loss | $ | (28 | ) | $ | (42 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 50 | 48 | |||||
Deferred income taxes | (10 | ) | (27 | ) | |||
Amortization of deferred financing costs and discount | 4 | 4 | |||||
Loss on the early extinguishment of debt | 4 | — | |||||
Equity in losses of unconsolidated entities | 3 | — | |||||
Stock-based compensation | 12 | 12 | |||||
Mark-to-market adjustments on derivatives | (1 | ) | 31 | ||||
Other adjustments to net loss | (1 | ) | (1 | ) | |||
Net change in assets and liabilities, excluding the impact of acquisitions and dispositions: | |||||||
Trade receivables | 4 | 3 | |||||
Relocation receivables | 22 | (9 | ) | ||||
Other assets | (24 | ) | (10 | ) | |||
Accounts payable, accrued expenses and other liabilities | (44 | ) | (71 | ) | |||
Due to former parent | — | 1 | |||||
Dividends received from unconsolidated entities | 1 | — | |||||
Other, net | (4 | ) | (3 | ) | |||
Net cash used in operating activities | (12 | ) | (64 | ) | |||
Investing Activities | |||||||
Property and equipment additions | (28 | ) | (22 | ) | |||
Payments for acquisitions, net of cash acquired | (1 | ) | (13 | ) | |||
Investment in unconsolidated entities | (3 | ) | — | ||||
Change in restricted cash | 2 | 2 | |||||
Other, net | (1 | ) | (1 | ) | |||
Net cash used in investing activities | (31 | ) | (34 | ) | |||
Financing Activities | |||||||
Net change in revolving credit facility | 110 | (200 | ) | ||||
Amortization payments on term loan facilities | (10 | ) | (10 | ) | |||
Proceeds from issuance of Senior Notes | — | 250 | |||||
Net change in securitization obligations | (33 | ) | (27 | ) | |||
Debt issuance costs | (6 | ) | (2 | ) | |||
Repurchase of common stock | (57 | ) | (33 | ) | |||
Dividends paid on common stock | (13 | ) | — | ||||
Proceeds from exercise of stock options | 1 | — | |||||
Taxes paid related to net share settlement for stock-based compensation | (10 | ) | (4 | ) | |||
Payments of contingent consideration related to acquisitions | (4 | ) | (4 | ) | |||
Other, net | (5 | ) | (4 | ) | |||
Net cash used in financing activities | (27 | ) | (34 | ) | |||
Effect of changes in exchange rates on cash and cash equivalents | 1 | — | |||||
Net decrease in cash and cash equivalents | (69 | ) | (132 | ) | |||
Cash and cash equivalents, beginning of period | 274 | 415 | |||||
Cash and cash equivalents, end of period | $ | 205 | $ | 283 | |||
Supplemental Disclosure of Cash Flow Information | |||||||
Interest payments (including securitization interest of $1 for both periods presented) | $ | 24 | $ | 28 | |||
Income tax payments, net | 2 | 2 |
1. | BASIS OF PRESENTATION |
Level Input: | Input Definitions: | |
Level I | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. | |
Level II | Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date. | |
Level III | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. |
Level I | Level II | Level III | Total | ||||||||||||
Interest rate swaps (included in other current and non-current liabilities) | $ | — | $ | 27 | $ | — | $ | 27 | |||||||
Deferred compensation plan assets (included in other non-current assets) | 3 | — | — | 3 | |||||||||||
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and non-current liabilities) | — | — | 45 | 45 |
Level I | Level II | Level III | Total | ||||||||||||
Interest rate swaps (included in other non-current liabilities) | $ | — | $ | 33 | $ | — | $ | 33 | |||||||
Deferred compensation plan assets (included in other non-current assets) | 3 | — | — | 3 | |||||||||||
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and non-current liabilities) | — | — | 50 | 50 |
Level III | ||||
Fair value of contingent consideration at December 31, 2016 | $ | 50 | ||
Additions: contingent consideration related to acquisitions completed during the period | — | |||
Reductions: payments of contingent consideration (reflected in the financing section of the Consolidated Statement of Cash Flows) | (4 | ) | ||
Changes in fair value (reflected in the Consolidated Statement of Operations) | (1 | ) | ||
Fair value of contingent consideration at March 31, 2017 | $ | 45 |
March 31, 2017 | December 31, 2016 | ||||||||||||||
Debt | Principal Amount | Estimated Fair Value (a) | Principal Amount | Estimated Fair Value (a) | |||||||||||
Senior Secured Credit Facility: | |||||||||||||||
Revolving Credit Facility | $ | 310 | $ | 310 | $ | 200 | $ | 200 | |||||||
Term Loan B | 1,092 | 1,097 | 1,094 | 1,100 | |||||||||||
Term Loan A Facility: | |||||||||||||||
Term Loan A | 408 | 408 | 413 | 414 | |||||||||||
Term Loan A-1 | 348 | 349 | 351 | 351 | |||||||||||
4.50% Senior Notes | 450 | 463 | 450 | 461 | |||||||||||
5.25% Senior Notes | 550 | 571 | 550 | 562 | |||||||||||
4.875% Senior Notes | 500 | 490 | 500 | 483 | |||||||||||
Securitization obligations | 172 | 172 | 205 | 205 |
(a) | The fair value of the Company's indebtedness is categorized as Level I. |
Notional Value (in millions) | Commencement Date | Expiration Date |
$225 | July 2012 | February 2018 |
$200 | January 2013 | February 2018 |
$600 | August 2015 | August 2020 |
$450 | November 2017 | November 2022 |
Liability Derivatives | Fair Value | |||||||||
Not Designated as Hedging Instruments | Balance Sheet Location | March 31, 2017 | December 31, 2016 | |||||||
Interest rate swap contracts | Other current and non-current liabilities | $ | 27 | $ | 33 |
Derivative Instruments Not Designated as Hedging Instruments | Location of (Gain) or Loss Recognized for Derivative Instruments | (Gain) or Loss Recognized on Derivatives | ||||||||
Three Months Ended March 31, | ||||||||||
2017 | 2016 | |||||||||
Interest rate swap contracts | Interest expense | $ | (1 | ) | $ | 31 | ||||
Foreign exchange contracts | Operating expense | — | — |
2. | ACQUISITIONS |
3. | INTANGIBLE ASSETS |
Real Estate Franchise Services | Company Owned Brokerage Services | Relocation Services | Title and Settlement Services | Total Company | |||||||||||||||
Gross goodwill as of December 31, 2016 | $ | 3,315 | $ | 1,051 | $ | 641 | $ | 469 | $ | 5,476 | |||||||||
Accumulated impairment losses | (1,023 | ) | (158 | ) | (281 | ) | (324 | ) | (1,786 | ) | |||||||||
Balance at December 31, 2016 | 2,292 | 893 | 360 | 145 | 3,690 | ||||||||||||||
Goodwill acquired | — | 1 | — | — | 1 | ||||||||||||||
Balance at March 31, 2017 | $ | 2,292 | $ | 894 | $ | 360 | $ | 145 | $ | 3,691 |
As of March 31, 2017 | As of December 31, 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Amortizable—Franchise agreements (a) | $ | 2,019 | $ | 675 | $ | 1,344 | $ | 2,019 | $ | 658 | $ | 1,361 | |||||||||||
Indefinite life—Trademarks (b) | $ | 748 | $ | 748 | $ | 748 | $ | 748 | |||||||||||||||
Other Intangibles | |||||||||||||||||||||||
Amortizable—License agreements (c) | $ | 45 | $ | 9 | $ | 36 | $ | 45 | $ | 9 | $ | 36 | |||||||||||
Amortizable—Customer relationships (d) | 550 | 318 | 232 | 550 | 312 | 238 | |||||||||||||||||
Indefinite life—Title plant shares (e) | 18 | 18 | 18 | 18 | |||||||||||||||||||
Amortizable—Pendings and listings (f) | 6 | 6 | — | 6 | 5 | 1 | |||||||||||||||||
Amortizable—Other (g) | 33 | 15 | 18 | 33 | 13 | 20 | |||||||||||||||||
Total Other Intangibles | $ | 652 | $ | 348 | $ | 304 | $ | 652 | $ | 339 | $ | 313 |
(b) | Primarily relates to the Century 21®, Coldwell Banker®, ERA®, Corcoran®, Coldwell Banker Commercial® and Cartus tradenames, which are expected to generate future cash flows for an indefinite period of time. |
(c) | Relates to the Sotheby’s International Realty® and Better Homes and Gardens® Real Estate agreements which are being amortized over 50 years (the contractual term of the license agreements). |
(d) | Relates to the customer relationships at the Relocation Services segment, the Title and Settlement Services segment, the Real Estate Franchise Services segment and our Company Owned Real Estate Brokerage Services segment. These relationships are being amortized over a period of 2 to 20 years. |
(e) | Ownership in a title plant is required to transact title insurance in certain states. The Company expects to generate future cash flows for an indefinite period of time. |
(f) | Generally amortized over a period of 5 months. |
(g) | Consists of covenants not to compete which are amortized over their contract lives and other intangibles which are generally amortized over periods ranging from 5 to 10 years. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Franchise agreements | $ | 17 | $ | 17 | |||
License agreements | — | — | |||||
Customer relationships | 6 | 7 | |||||
Pendings and listings | 1 | — | |||||
Other | 2 | 2 | |||||
Total | $ | 26 | $ | 26 |
4. | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
March 31, 2017 | December 31, 2016 | ||||||
Accrued payroll and related employee costs | $ | 85 | $ | 138 | |||
Accrued volume incentives | 29 | 40 | |||||
Accrued commissions | 37 | 31 | |||||
Restructuring accruals | 12 | 14 | |||||
Deferred income | 67 | 69 | |||||
Accrued interest | 31 | 13 | |||||
Contingent consideration for acquisitions | 20 | 24 | |||||
Other | 119 | 106 | |||||
Total accrued expenses and other current liabilities | $ | 400 | $ | 435 |
March 31, 2017 | December 31, 2016 | ||||||
Senior Secured Credit Facility: | |||||||
Revolving Credit Facility | $ | 310 | $ | 200 | |||
Term Loan B | 1,069 | 1,069 | |||||
Term Loan A Facility: | |||||||
Term Loan A | 406 | 411 | |||||
Term Loan A-1 | 345 | 347 | |||||
4.50% Senior Notes | 440 | 439 | |||||
5.25% Senior Notes | 545 | 545 | |||||
4.875% Senior Notes | 496 | 496 | |||||
Total Short-Term & Long-Term Debt | $ | 3,611 | $ | 3,507 | |||
Securitization obligations: | |||||||
Apple Ridge Funding LLC | $ | 160 | $ | 192 | |||
Cartus Financing Limited | 12 | 13 | |||||
Total securitization obligations | $ | 172 | $ | 205 |
Interest Rate | Expiration Date | Principal Amount | Unamortized Discount and Debt Issuance Costs | Net Amount | |||||||||||
Senior Secured Credit Facility: | |||||||||||||||
Revolving Credit Facility (1) | (2) | October 2020 | $ | 310 | $ * | $ | 310 | ||||||||
Term Loan B | (3) | July 2022 | 1,092 | 23 | 1,069 | ||||||||||
Term Loan A Facility: | |||||||||||||||
Term Loan A | (4) | October 2020 | 408 | 2 | 406 | ||||||||||
Term Loan A-1 | (5) | July 2021 | 348 | 3 | 345 | ||||||||||
Senior Notes | 4.50% | April 2019 | 450 | 10 | 440 | ||||||||||
Senior Notes | 5.25% | December 2021 | 550 | 5 | 545 | ||||||||||
Senior Notes | 4.875% | June 2023 | 500 | 4 | 496 | ||||||||||
Securitization obligations: (6) | |||||||||||||||
Apple Ridge Funding LLC (7) | June 2017 | 160 | * | 160 | |||||||||||
Cartus Financing Limited (8) | August 2017 | 12 | * | 12 | |||||||||||
Total (9) | $ | 3,830 | $ | 47 | $ | 3,783 |
* | The debt issuance costs related to our Revolving Credit Facility and securitization obligations are classified as a deferred financing asset within other assets. |
(1) | As of March 31, 2017, the Company had $1,050 million of borrowing capacity under its Revolving Credit Facility, leaving $740 million of available capacity. The revolving credit facility expires in October 2020, but is classified on the balance sheet as current due to the revolving nature of the facility. The outstanding borrowings and capacity are the same as of May 3, 2017. |
(2) | Interest rates with respect to revolving loans under the Senior Secured Credit Facility at March 31, 2017 are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended March 31, 2017. |
(3) | The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B is based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) JPMorgan Chase Bank, N.A.’s prime rate ("ABR") plus 1.25% (with an ABR floor of 1.75%). |
(4) | The Term Loan A provides for quarterly amortization payments, which commenced March 31, 2016, totaling per annum 5%, 5%, 7.5%, 10.0% and 12.5% of the original principal amount of the Term Loan A in 2016, 2017, 2018, 2019 and 2020, respectively. The interest rates with respect to term loans under the Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an |
(5) | The Term Loan A-1 provides for quarterly amortization payments, which commenced on September 30, 2016, totaling per annum 2.5%, 2.5%, 5%, 7.5% and 10.0% of the original principal amount of the Term Loan A-1, with the last amortization payment made on June 30, 2021. The interest rates with respect to term loans under the Term Loan A-1 are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended March 31, 2017. |
(6) | Available capacity is subject to maintaining sufficient relocation related assets to collateralize these securitization obligations. |
(7) | As of March 31, 2017, the Company had $325 million of borrowing capacity under the Apple Ridge Funding LLC securitization program leaving $165 million of available capacity. |
(8) | Consists of a £10 million revolving loan facility and a £5 million working capital facility. As of March 31, 2017, the Company had $19 million of borrowing capacity under the Cartus Financing Limited securitization program leaving $7 million of available capacity. |
(9) | Not included in this table, the Company had $126 million of outstanding letters of credit at March 31, 2017 under the Unsecured Letter of Credit Facility with a weighted average rate of 2.93%. At March 31, 2017, the capacity of the facility was $131 million. |
Year | Amount | |||
Remaining 2017 (a) | $ | 341 | ||
2018 | 57 | |||
2019 | 527 | |||
2020 | 357 | |||
2021 | 836 |
(a) | The current portion of long-term debt consists of remaining 2017 amortization payments totaling $16 million, $7 million and $8 million for the Term Loan A, Term Loan A-1 and Term Loan B facilities, respectively, as well as $310 million of revolver borrowings under the revolving credit facility which expires in October 2020, but are classified on the balance sheet as current due to the revolving nature of the facility. |
(a) | a Term Loan B issued in the original aggregate principal amount of $1,100 million with a maturity date of July 2022. The Term Loan B has quarterly amortization payments totaling 1% per annum of the initial aggregate principal amount. The interest rate with respect to term loans under the Term Loan B is based on, at Realogy Group's option, adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or ABR plus 1.25% (with an ABR floor of 1.75%); and |
(b) | a $1,050 million Revolving Credit Facility with a maturity date of October 23, 2020, which includes (i) a $125 million letter of credit subfacility and (ii) a swingline loan subfacility. The interest rate with respect to revolving loans under the Revolving Credit Facility is based on, at Realogy Group's option, adjusted LIBOR or ABR plus an |
Senior Secured Leverage Ratio | Applicable LIBOR Margin | Applicable ABR Margin | ||
Greater than 3.50 to 1.00 | 2.50% | 1.50% | ||
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | 2.25% | 1.25% | ||
Less than 2.50 to 1.00 | 2.00% | 1.00% |
Senior Secured Leverage Ratio | Applicable LIBOR Margin | Applicable ABR Margin | ||
Greater than 3.50 to 1.00 | 2.50% | 1.50% | ||
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | 2.25% | 1.25% | ||
Less than 2.50 to 1.00 | 2.00% | 1.00% |
Senior Secured Leverage Ratio | Applicable LIBOR Margin | Applicable ABR Margin | ||
Greater than 3.50 to 1.00 | 2.50% | 1.50% | ||
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | 2.25% | 1.25% | ||
Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 | 2.00% | 1.00% | ||
Less than 2.00 to 1.00 | 1.75% | 0.75% |
Capacity (in millions) | Expiration Date |
$65 | September 2018 |
$66 | December 2019 |
6. | RESTRUCTURING COSTS |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Personnel-related costs (1) | $ | 5 | $ | 2 | |||
Facility-related costs (2) | — | 2 | |||||
Accelerated depreciation on asset disposals | — | — | |||||
Other restructuring costs (3) | — | 5 | |||||
Total restructuring charges | $ | 5 | $ | 9 |
(1) | Personnel-related costs consist of severance costs provided to employees who have been terminated and duplicate payroll costs during transition. |
(2) | Facility-related costs consist of costs associated with planned facility closures such as contract termination costs, lease payments that will continue to be incurred under the contract for its remaining term without economic benefit to the Company and other facility and employee relocation related costs. |
(3) | Other restructuring costs consist of costs related to professional fees, consulting fees and other costs associated with restructuring activities which are primarily included in the Corporate and Other business segment. |
Personnel-related costs | Facility-related costs | Accelerated depreciation on asset disposal | Other restructuring costs | Total | |||||||||||||||
Balance at December 31, 2016 | $ | 9 | $ | 7 | $ | — | $ | — | $ | 16 | |||||||||
Restructuring charges | 5 | — | — | — | 5 | ||||||||||||||
Costs paid or otherwise settled | (6 | ) | (2 | ) | — | — | (8 | ) | |||||||||||
Balance at March 31, 2017 | $ | 8 | $ | 5 | $ | — | $ | — | $ | 13 |
Total amount expected to be incurred | Amount incurred to date | Total amount remaining to be incurred | |||||||||
Personnel-related costs | $ | 34 | $ | 30 | $ | 4 | |||||
Facility-related costs | 17 | 13 | 4 | ||||||||
Accelerated depreciation related to asset disposals | 3 | 1 | 2 | ||||||||
Other restructuring costs | 11 | 10 | 1 | ||||||||
Total | $ | 65 | $ | 54 | $ | 11 |
Total amount expected to be incurred | Amount incurred to date | Total amount remaining to be incurred | |||||||||
Real Estate Franchise Services | $ | 5 | $ | 4 | $ | 1 | |||||
Company Owned Real Estate Brokerage Services | 39 | 32 | 7 | ||||||||
Relocation Services | 5 | 5 | — | ||||||||
Title and Settlement Services | 1 | 1 | — | ||||||||
Corporate and Other | 15 | 12 | 3 | ||||||||
Total | $ | 65 | $ | 54 | $ | 11 |
7. | STOCK-BASED COMPENSATION |
2017 RTSR PSU | |||
Weighted average grant date fair value | $ | 27.98 | |
Weighted average expected volatility | 29.0 | % | |
Weighted average volatility of XHB | 18.4 | % | |
Weighted average correlation coefficient | 0.53 | ||
Weighted average risk-free interest rate | 1.5 | % | |
Weighted average dividend yield | — |
Restricted Stock Units | Weighted Average Grant Date Fair Value | |||||
Unvested at January 1, 2017 | 1.4 | $ | 37.53 | |||
Granted | 0.9 | 27.69 | ||||
Vested (a) | (0.5 | ) | 40.63 | |||
Forfeited | — | — | ||||
Unvested at March 31, 2017 | 1.8 | $ | 31.41 |
(a) | The total fair value of RSUs which vested during the three months ended March 31, 2017 was $23 million. |
Performance Share Units (a) | Weighted Average Grant Date Fair Value | |||||
Unvested at January 1, 2017 | 1.0 | $ | 36.71 | |||
Granted | 0.7 | 27.70 | ||||
Vested | — | — | ||||
Forfeited | — | — | ||||
Unvested at March 31, 2017 | 1.7 | $ | 32.74 |
(a) | The PSU amounts in the table are shown at the target amount of the award. |
2017 Options | |||
Weighted average grant date fair value | $ | 8.00 | |
Weighted average expected volatility | 30.7 | % | |
Weighted average expected term (years) | 6.25 | ||
Weighted average risk-free interest rate | 2.1 | % | |
Weighted average dividend yield | 1.3 | % |
Options | Weighted Average Exercise Price | |||||
Outstanding at January 1, 2017 | 3.3 | $ | 31.73 | |||
Granted | 0.4 | 27.56 | ||||
Exercised | — | — | ||||
Forfeited/Expired | — | — | ||||
Outstanding at March 31, 2017 (a) | 3.7 | $ | 31.31 |
(a) | Options outstanding at March 31, 2017 have an intrinsic value of $7 million and have a weighted average remaining contractual life of 6.2 years. |
8. | TRANSACTIONS WITH FORMER PARENT AND SUBSIDIARIES |
10. | COMMITMENTS AND CONTINGENCIES |
• | that the Company is vicariously liable for the acts of franchisees under theories of actual or apparent agency; |
• | by former franchisees that franchise agreements were breached including improper terminations; |
• | concerning claims for alleged RESPA or state real estate law violations including but not limited to claims challenging the validity of sales associates indemnification, and administrative fees; |
• | that residential real estate sales associates engaged by NRT—under certain state or federal laws—are potentially employees instead of independent contractors, and they or regulators therefore may bring claims against NRT for breach of contract, wage and hour classification claims, wrongful discharge, unemployment and workers' compensation and could obtain benefits, back wages, overtime, indemnification, penalties related to classification practices and expense reimbursement available to employees; |
• | concerning claims generally against the company owned brokerage operations for negligence, misrepresentation or breach of fiduciary duty in connection with the performance of real estate brokerage or other professional services as well as other brokerage claims associated with listing information and property history; |
• | concerning claims generally against the title company contending that, as the escrow company, the company knew or should have known that a transaction was fraudulent or concerning other title defects or settlement errors; and |
• | concerning information security and cyber crime. |
11. | SEGMENT INFORMATION |
Revenues (a) (b) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Real Estate Franchise Services | $ | 170 | $ | 157 | |||
Company Owned Real Estate Brokerage Services | 897 | 841 | |||||
Relocation Services | 77 | 83 | |||||
Title and Settlement Services | 120 | 111 | |||||
Corporate and Other (c) | (61 | ) | (58 | ) | |||
Total Company | $ | 1,203 | $ | 1,134 |
(a) | Transactions between segments are eliminated in consolidation. Revenues for the Real Estate Franchise Services segment include intercompany royalties and marketing fees paid by the Company Owned Real Estate Brokerage Services segment of $61 million and $58 million for the three months ended March 31, 2017 and 2016, respectively. Such amounts are eliminated through the Corporate and Other line. |
(b) | Revenues for the Relocation Services segment include intercompany referral commissions paid by the Company Owned Real Estate Brokerage Services segment of $8 million for both the three months ended March 31, 2017 and 2016. Such amounts are recorded as contra-revenues by the Company Owned Real Estate Brokerage Services segment. There are no other material intersegment transactions. |
(c) | Includes the elimination of transactions between segments. |
EBITDA | |||||||
Three Months Ended March 31, | |||||||
2017 (a) | 2016 (b) | ||||||
Real Estate Franchise Services | $ | 102 | $ | 92 | |||
Company Owned Real Estate Brokerage Services | (26 | ) | (21 | ) | |||
Relocation Services | 1 | 5 | |||||
Title and Settlement Services | 2 | — | |||||
Corporate and Other (c) | (27 | ) | (21 | ) | |||
Total Company | $ | 52 | $ | 55 | |||
Less: | |||||||
Depreciation and amortization | $ | 50 | $ | 48 | |||
Interest expense, net | 39 | 73 | |||||
Income tax benefit | (9 | ) | (24 | ) | |||
Net loss attributable to Realogy Holdings and Realogy Group | $ | (28 | ) | $ | (42 | ) |
(a) | Includes restructuring charges of $5 million in the Company Owned Real Estate Brokerage Services segment and $4 million related to the loss on the early extinguishment of debt for the three months ended March 31, 2017. |
(b) | Includes $9 million of restructuring charges as follows: $2 million in the Company Owned Real Estate Brokerage Services segment, $2 million in the Relocation Services segment and $5 million in Corporate and Other, and a net cost of $1 million of former parent legacy items for the three months ended March 31, 2016. |
(c) | Includes the elimination of transactions between segments. |
• | Real Estate Franchise Services (known as Realogy Franchise Group or RFG)—franchises the Century 21®, Coldwell Banker®, Coldwell Banker Commercial®, ERA®, Sotheby's International Realty® and Better Homes and Gardens® Real Estate brand names. As of March 31, 2017, our franchise systems had approximately 14,200 franchised and company owned offices and approximately 274,500 independent sales associates operating under our franchise and proprietary brands in the U.S. and 112 other countries and territories around the world, which included more than 780 of our company owned and operated brokerage offices with more than 48,100 independent sales associates. |
• | Company Owned Real Estate Brokerage Services (known as NRT)—operates a full-service real estate brokerage business principally under the Coldwell Banker®, Corcoran®, Sotheby’s International Realty®, ZipRealty® and Citi HabitatsSM brand names in more than 50 of the 100 largest metropolitan areas in the U.S. This segment also includes the Company's share of earnings for our PHH Home Loans venture. |
• | Relocation Services (known as Cartus®)—primarily offers clients employee relocation services such as homesale assistance, providing home equity advances to transferees (generally guaranteed by the client), home finding and other destination services, expense processing, relocation policy counseling and consulting services, arranging household goods moving services, coordinating visa and immigration support, intercultural and language training and group move management services. In addition, we provide home buying and selling assistance to members of affinity clients. |
• | Title and Settlement Services (known as Title Resource Group or TRG)—provides full-service title and settlement services to real estate companies, affinity groups, corporations and financial institutions with many of these services provided in connection with the Company's real estate brokerage and relocation services business. |
Total amount expected to be incurred | Amount incurred to date | Total amount remaining to be incurred | |||||||||
RFG | $ | 5 | $ | 4 | $ | 1 | |||||
NRT | 39 | 32 | 7 | ||||||||
Cartus | 5 | 5 | — | ||||||||
TRG | 1 | 1 | — | ||||||||
Corporate and Other | 15 | 12 | 3 | ||||||||
Total | $ | 65 | $ | 54 | $ | 11 |
2017 vs. 2016 | ||||||||||||||||||
Number of Existing Homesales | Full Year 2016 vs. 2015 | First Quarter | Second Quarter Forecast | Third Quarter Forecast | Fourth Quarter Forecast | Full Year Forecast 2017 vs. 2016 | ||||||||||||
Industry | ||||||||||||||||||
NAR | 4 | % | (a) | 5 | % | (a) | 5 | % | (b) | 3 | % | (b) | 1 | % | (b) | 3 | % | (b) |
Fannie Mae (c) | 4 | % | 6 | % | 1 | % | 3 | % | — | % | 2 | % | ||||||
Realogy | ||||||||||||||||||
RFG and NRT Combined | 2 | % | 3 | % | ||||||||||||||
RFG | 3 | % | 3 | % | ||||||||||||||
NRT | — | % | 4 | % |
(a) | Historical existing homesale data is as of the most recent NAR press release, which is subject to sampling error. |
(b) | Forecasted existing homesale data, on a seasonally adjusted basis, is as of the most recent NAR forecast. |
(c) | Forecasted existing homesale data, on a seasonally adjusted basis, is as of the most recent Fannie Mae press release. |
2017 vs. 2016 | ||||||||||||||||||
Price of Existing Homes | Full Year 2016 vs. 2015 | First Quarter | Second Quarter Forecast | Third Quarter Forecast | Fourth Quarter Forecast | Full Year Forecast 2017 vs. 2016 | ||||||||||||
Industry | ||||||||||||||||||
NAR | 4 | % | (a) | 5 | % | (a) | 5 | % | (b) | 5 | % | (b) | 4 | % | (b) | 5 | % | (b) |
Fannie Mae (c) | 5 | % | 6 | % | 6 | % | 5 | % | 5 | % | 6 | % | ||||||
Realogy | ||||||||||||||||||
RFG and NRT Combined | 2 | % | 5 | % | ||||||||||||||
RFG | 3 | % | 6 | % | ||||||||||||||
NRT | — | % | 3 | % |
(a) | Historical homesale price data is for existing homesale average price and is as of the most recent NAR press release. |
(b) | Forecasted homesale price data is for median price and is as of the most recent NAR forecast. |
(c) | Existing homesale price data is for median price and is as of the most recent Fannie Mae press release. |
• | higher mortgage rates due to increases in long-term interest rates as well as reduced availability of mortgage financing; |
• | insufficient inventory levels and lack of building of new housing leading to lower unit sales; |
• | changing attitudes towards home ownership, particularly among potential first-time homebuyers who may delay, or decide not to, purchase homes; |
• | potential homebuyers with a low credit rating or inability to afford down payments; |
• | the impact of limited or negative equity of current homeowners, as well as the lack of available inventory may limit their proclivity to purchase an alternative home; |
• | reduced affordability of homes; |
• | unsustainable economic recovery in the U.S. or a weak recovery resulting in only modest economic growth; |
• | a decline in home ownership levels in the U.S.; |
• | geopolitical and economic instability; and |
• | legislative or regulatory reform, including but not limited to reform that adversely impacts the financing of the U.S. housing market or amends the Internal Revenue Code in a manner that negatively impacts home ownership such as reform that reduces the amount that certain taxpayers would be allowed to deduct for home mortgage interest. |
• | they use survey data and estimates in their historical reports and forecasting models, which are subject to sampling error, whereas we use data based on actual reported results; |
• | there are geographical differences and concentrations in the markets in which we operate versus the national market. For example, many of our company owned brokerage offices are geographically located where average homesale prices are generally higher than the national average and therefore NAR survey data will not correlate with NRT's results; |
• | comparability is also impaired due to NAR’s utilization of seasonally adjusted annualized rates whereas we report actual period-over-period changes and their use of median price for their forecasts compared to our average price; |
• | NAR historical data is subject to periodic review and revision and these revisions have been, and could be material in the future; and |
• | NAR and Fannie Mae generally update their forecasts on a monthly basis and a subsequent forecast may change materially from a forecast that was previously issued. |
Three Months Ended March 31, | ||||||||||
2017 | 2016 | % Change | ||||||||
RFG (a) | ||||||||||
Closed homesale sides | 225,250 | 218,330 | 3 | % | ||||||
Average homesale price | $ | 275,828 | $ | 259,044 | 6 | % | ||||
Average homesale broker commission rate | 2.50 | % | 2.51 | % | (1) bps | |||||
Net effective royalty rate | 4.44 | % | 4.51 | % | (7) bps | |||||
Royalty per side | $ | 322 | $ | 309 | 4 | % | ||||
NRT | ||||||||||
Closed homesale sides | 66,570 | 64,244 | 4 | % | ||||||
Average homesale price | $ | 509,197 | $ | 493,125 | 3 | % | ||||
Average homesale broker commission rate | 2.45 | % | 2.46 | % | (1) bps | |||||
Gross commission income per side | $ | 13,261 | $ | 12,878 | 3 | % | ||||
Cartus | ||||||||||
Initiations | 36,515 | 37,174 | (2 | %) | ||||||
Referrals | 15,203 | 16,893 | (10 | %) | ||||||
TRG | ||||||||||
Purchase title and closing units (b) | 31,297 | 29,236 | 7 | % | ||||||
Refinance title and closing units (c) | 8,533 | 9,703 | (12 | %) | ||||||
Average fee per closing unit | $ | 2,001 | $ | 1,848 | 8 | % |
(a) | Includes all franchisees except for NRT. |
(b) | The amount presented for the three months ended March 31, 2017 includes 1,972 purchase units as a result of acquisitions completed prior to the first quarter of 2017. |
(c) | The amount presented for the three months ended March 31, 2017 includes 523 refinance units as a result of the acquisitions completed prior to the first quarter of 2017. |
Three Months Ended March 31, | |||||||||||
2017 | 2016 | Change | |||||||||
Net revenues | $ | 1,203 | $ | 1,134 | $ | 69 | |||||
Total expenses (1) | 1,237 | 1,200 | 37 | ||||||||
Loss before income taxes, equity in losses and noncontrolling interests | (34 | ) | (66 | ) | 32 | ||||||
Income tax benefit | (9 | ) | (24 | ) | 15 | ||||||
Equity in losses of unconsolidated entities | 3 | — | 3 | ||||||||
Net loss | (28 | ) | (42 | ) | 14 | ||||||
Less: Net income attributable to noncontrolling interests | — | — | — | ||||||||
Net loss attributable to Realogy Holdings and Realogy Group | $ | (28 | ) | $ | (42 | ) | $ | 14 |
(1) | Total expenses for the three months ended March 31, 2017 includes $5 million of restructuring charges and $4 million related to loss on the early extinguishment of debt. Total expenses for the three months ended March 31, 2016 includes $9 million of restructuring charges and a net cost of $1 million of former parent legacy items. |
• | a $47 million increase in commission and other sales associate-related costs due to an increase in homesale transaction volume at NRT; |
• | a $19 million increase in operating and general and administrative expenses primarily driven by: |
◦ | $10 million of additional employee-related costs associated with acquisitions; |
◦ | a $7 million increase in other expenses including professional fees and occupancy costs; and |
◦ | a $3 million increase in variable operating costs at TRG primarily related to volume increases; |
• | a $4 million increase in marketing expense; and |
• | $4 million related to the loss on the early extinguishment of debt as a result of the refinancing transaction completed during the first quarter of 2017. |
• | a $34 million net decrease in interest expense to $39 million in the first quarter of 2017 from $73 million in the first quarter of 2016. Before the mark-to-market adjustments for our interest rate swaps, interest expense decreased $2 million to $40 million in the first quarter of 2017 from $42 million in the first quarter of 2016 as a result of a reduction in total outstanding indebtedness and a lower weighted average interest rate. Mark-to-market adjustments for our interest rate swaps resulted in gains of $1 million in the first quarter of 2017 compared to losses of $31 million in the same period of 2016; and |
• | $5 million in restructuring costs related to the Company's business optimization plan in the first quarter of 2017 compared to $9 million in the same period in 2016. |
Revenues (a) | % Change | EBITDA (b) | % Change | EBITDA Margin | Change | |||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||
RFG | $ | 170 | $ | 157 | 8 | % | $ | 102 | $ | 92 | 11 | % | 60 | % | 59 | % | 1 | |||||||||||||
NRT | 897 | 841 | 7 | (26 | ) | (21 | ) | (24 | ) | (3 | ) | (2 | ) | (1 | ) | |||||||||||||||
Cartus | 77 | 83 | (7 | ) | 1 | 5 | (80 | ) | 1 | 6 | (5 | ) | ||||||||||||||||||
TRG | 120 | 111 | 8 | 2 | — | * | 2 | — | 2 | |||||||||||||||||||||
Corporate and Other | (61 | ) | (58 | ) | * | (27 | ) | (21 | ) | * | ||||||||||||||||||||
Total Company | $ | 1,203 | $ | 1,134 | 6 | % | $ | 52 | $ | 55 | (5 | )% | 4 | % | 5 | % | (1 | ) | ||||||||||||
Less: Depreciation and amortization | 50 | 48 | ||||||||||||||||||||||||||||
Interest expense, net | 39 | 73 | ||||||||||||||||||||||||||||
Income tax benefit | (9 | ) | (24 | ) | ||||||||||||||||||||||||||
Net loss attributable to Realogy Holdings and Realogy Group | $ | (28 | ) | $ | (42 | ) |
* | not meaningful |
(a) | Includes the elimination of transactions between segments, which consists of intercompany royalties and marketing fees paid by NRT of $61 million and $58 million during the three months ended March 31, 2017 and March 31, 2016, respectively. |
(b) | EBITDA for the three months ended March 31, 2017 includes $5 million of restructuring charges in NRT and $4 million related to loss on the early extinguishment of debt. |
Three Months Ended March 31, | ||||||||||||||||||
2017 | 2016 | |||||||||||||||||
EBITDA | Restructuring Charges | EBITDA Before Restructuring | EBITDA Before Restructuring | % Change | ||||||||||||||
Real Estate Franchise Services | $ | 102 | $ | — | $ | 102 | $ | 92 | 11 | % | ||||||||
Company Owned Real Estate Brokerage Services | (26 | ) | 5 | (21 | ) | (19 | ) | (11 | )% | |||||||||
Relocation Services | 1 | — | 1 | 7 | (86 | )% | ||||||||||||
Title and Settlement Services | 2 | — | 2 | — | * | |||||||||||||
Corporate and Other | (27 | ) | — | (27 | ) | (16 | ) | * | ||||||||||
Total Company | $ | 52 | $ | 5 | $ | 57 | $ | 64 | (11 | )% |
* | not meaningful |
Revenues (a) | % Change | EBITDA Before Restructuring (b) | % Change | Margin | Change | ||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
RFG and NRT Combined | $ | 1,006 | $ | 940 | 7 | % | $ | 81 | $ | 73 | 11 | % | 8 | % | 8 | % | — |
(a) | Excludes transactions between segments, which consists of intercompany royalties and marketing fees paid by NRT to RFG of $61 million and $58 million during the three months ended March 31, 2017 and March 31, 2016, respectively. |
(b) | EBITDA for the combined RFG and NRT segments excludes $5 million and $2 million of restructuring charges for the three months ended March 31, 2017 and March 31, 2016, respectively. |
• | a $47 million increase in commission expenses paid to independent sales associates from $558 million in the first quarter of 2016 to $605 million in the first quarter of 2017. The increase in commission expense is due to an increase of $37 million by our existing brokerage operations and a $10 million increase related to acquisitions; |
• | $5 million in restructuring costs related to the Company's business optimization plan in the first quarter of 2017 compared to $2 million in the same period in 2016; |
• | $4 million in losses for our equity method investment in PHH Home Loans; |
• | a $3 million increase in royalties paid to RFG from $56 million in the first quarter of 2016 to $59 million in the first quarter of 2017; |
• | a $2 million increase in occupancy costs primarily related to acquisitions; |
• | a $2 million increase in employee-related costs due to a $6 million increase attributable to acquisitions, partially offset by a $4 million decrease due to expense reduction initiatives; and |
• | a $1 million increase in marketing expenses related to acquisitions. |
March 31, 2017 | December 31, 2016 | Change | |||||||||
Total assets | $ | 7,330 | $ | 7,421 | $ | (91 | ) | ||||
Total liabilities | 4,955 | 4,952 | 3 | ||||||||
Total equity | 2,375 | 2,469 | (94 | ) |
Three Months Ended March 31, | |||||||||||
2017 | 2016 | Change | |||||||||
Cash used in: | |||||||||||
Operating activities | $ | (12 | ) | $ | (64 | ) | $ | 52 | |||
Investing activities | (31 | ) | (34 | ) | 3 | ||||||
Financing activities | (27 | ) | (34 | ) | 7 | ||||||
Effects of change in exchange rates on cash and cash equivalents | 1 | — | 1 | ||||||||
Net change in cash and cash equivalents | $ | (69 | ) | $ | (132 | ) | $ | 63 |
• | $57 million for the repurchase of our common stock; |
• | $33 million net decrease in securitization borrowings; |
• | $13 million of dividend payments; |
• | $10 million of quarterly amortization payments on the term loan facilities; |
• | $10 million of tax payments related to net share settlement for stock-based compensation; |
• | $6 million of debt issuance costs; |
• | $5 million of other financing payments primarily related to capital leases and interest rate swaps; and |
• | $4 million for payments of contingent consideration; |
• | $110 million of additional borrowings under the Revolving Credit Facility. |
• | repayment of $200 million of borrowings under the Revolving Credit Facility; |
• | $33 million for the repurchase of our common stock; |
• | $27 million decrease in net securitization obligation borrowings; |
• | $10 million of quarterly amortization payments on the term loan facilities; |
• | $4 million for payments of contingent consideration; |
• | $4 million of other financing payments primarily related to interest rate swaps; and |
• | $4 million of tax payments related to net share settlement for stock-based compensation; |
Interest Rate | Expiration Date | Principal Amount | Unamortized Discount and Debt Issuance Costs | Net Amount | |||||||||||
Senior Secured Credit Facility: | |||||||||||||||
Revolving Credit Facility (1) | (2) | October 2020 | $ | 310 | $ * | $ | 310 | ||||||||
Term Loan B | (3) | July 2022 | 1,092 | 23 | 1,069 | ||||||||||
Term Loan A Facility: | |||||||||||||||
Term Loan A | (4) | October 2020 | 408 | 2 | 406 | ||||||||||
Term Loan A-1 | (5) | July 2021 | 348 | 3 | 345 | ||||||||||
Senior Notes | 4.50% | April 2019 | 450 | 10 | 440 | ||||||||||
Senior Notes | 5.25% | December 2021 | 550 | 5 | 545 | ||||||||||
Senior Notes | 4.875% | June 2023 | 500 | 4 | 496 | ||||||||||
Securitization obligations: (6) | |||||||||||||||
Apple Ridge Funding LLC (7) | June 2017 | 160 | * | 160 | |||||||||||
Cartus Financing Limited (8) | August 2017 | 12 | * | 12 | |||||||||||
Total (9) | $ | 3,830 | $ | 47 | $ | 3,783 |
* | The debt issuance costs related to our Revolving Credit Facility and securitization obligations are classified as a deferred financing asset within other assets. |
(1) | As of March 31, 2017, the Company had $1,050 million of borrowing capacity under its Revolving Credit Facility leaving $740 million of available capacity. The revolving credit facility expires in October 2020, but is classified on the balance sheet as current due to the revolving nature of the facility. The outstanding borrowings and capacity are the same as of May 3, 2017. |
(2) | Interest rates with respect to revolving loans under the Senior Secured Credit Facility at March 31, 2017 are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended March 31, 2017. |
(3) | The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B is based on, at the Company’s option, (a) adjusted LIBOR plus |
(4) | The Term Loan A provides for quarterly amortization payments, which commenced March 31, 2016, totaling per annum 5%, 5%, 7.5%, 10.0% and 12.5% of the original principal amount of the Term Loan A in 2016, 2017, 2018, 2019 and 2020, respectively. The interest rates with respect to term loans under the Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended March 31, 2017. |
(5) | The Term Loan A-1 provides for quarterly amortization payments, which commenced on September 30, 2016, totaling per annum 2.5%, 2.5%, 5%, 7.5% and 10.0% of the original principal amount of the Term Loan A-1, with the last amortization payment made on June 30, 2021. The interest rates with respect to term loans under the Term Loan A-1 are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended March 31, 2017. |
(6) | Available capacity is subject to maintaining sufficient relocation related assets to collateralize these securitization obligations. |
(7) | As of March 31, 2017, the Company had $325 million of borrowing capacity under the Apple Ridge Funding LLC securitization program leaving $165 million of available capacity. |
(8) | Consists of a £10 million revolving loan facility and a £5 million working capital facility. As of March 31, 2017, the Company had $19 million of borrowing capacity under the Cartus Financing Limited securitization program leaving $7 million of available capacity. |
(9) | Not included in this table, the Company had $126 million of outstanding letters of credit at March 31, 2017 under the Unsecured Letter of Credit Facility with a weighted average rate of 2.93%. At March 31, 2017, the capacity of the facility was $131 million. |
• | incur or guarantee additional debt or issue disqualified stock or preferred stock; |
• | pay dividends or make distributions to Realogy Group’s stockholders, including Realogy Holdings; |
• | repurchase or redeem capital stock; |
• | make loans, investments or acquisitions; |
• | incur restrictions on the ability of certain of Realogy Group's subsidiaries to pay dividends or to make other payments to Realogy Group; |
• | enter into transactions with affiliates; |
• | create liens; |
• | merge or consolidate with other companies or transfer all or substantially all of Realogy Group's and its material subsidiaries' assets; |
• | transfer or sell assets, including capital stock of subsidiaries; and |
• | prepay, redeem or repurchase subordinated indebtedness. |
• | these measures do not reflect changes in, or cash required for, our working capital needs; |
• | these measures do not reflect our interest expense (except for interest related to our securitization obligations), or the cash requirements necessary to service interest or principal payments on our debt; |
• | these measures do not reflect our income tax expense or the cash requirements to pay our taxes; |
• | these measures do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments; |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often require replacement in the future, and these measures do not reflect any cash requirements for such replacements; and |
• | other companies may calculate these measures differently so they may not be comparable. |
Less | Equals | Plus | Equals | ||||||||||||||||
Year Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, 2016 | March 31, 2016 | December 31, 2016 | March 31, 2017 | March 31, 2017 | |||||||||||||||
Net income (loss) attributable to Realogy Group (a) | $ | 213 | $ | (42 | ) | $ | 255 | $ | (28 | ) | $ | 227 | |||||||
Income tax expense / (benefit) | 144 | (24 | ) | 168 | (9 | ) | 159 | ||||||||||||
Income before income taxes | 357 | (66 | ) | 423 | (37 | ) | 386 | ||||||||||||
Interest expense, net | 174 | 73 | 101 | 39 | 140 | ||||||||||||||
Depreciation and amortization | 202 | 48 | 154 | 50 | 204 | ||||||||||||||
EBITDA (b) | 733 | 55 | 678 | 52 | 730 | ||||||||||||||
EBITDA adjustments: | |||||||||||||||||||
Restructuring costs | 35 | ||||||||||||||||||
Former parent legacy cost (benefit), net | (3 | ) | |||||||||||||||||
Loss on the early extinguishment of debt | 4 | ||||||||||||||||||
Operating EBITDA | 766 | ||||||||||||||||||
Bank covenant adjustments: | |||||||||||||||||||
Pro forma effect of business optimization initiatives (c) | 30 | ||||||||||||||||||
Non-cash charges (d) | 46 | ||||||||||||||||||
Pro forma effect of acquisitions and new franchisees (e) | 19 | ||||||||||||||||||
Incremental securitization interest costs (f) | 4 | ||||||||||||||||||
Adjusted (Covenant) EBITDA | $ | 865 | |||||||||||||||||
Total senior secured net debt (g) | $ | 2,033 | |||||||||||||||||
Senior secured leverage ratio | 2.35 | x |
(a) | Net income (loss) attributable to Realogy consists of: (i) income of $92 million for the second quarter of 2016, (ii) income of $106 million for the third quarter of 2016, (iii) income of $57 million for the fourth quarter of 2016 and (iv) a loss of $28 million for the first quarter of 2017. |
(b) | EBITDA consists of: (i) $263 million for the second quarter of 2016, (ii) $270 million for the third quarter of 2016, (iii) $145 million for the fourth quarter of 2016 and (iv) $52 million for the first quarter of 2017. |
(c) | Represents the twelve-month pro forma effect of business optimization initiatives. |
(d) | Represents the elimination of non-cash expenses, including $57 million of stock-based compensation expense less $8 million for the change in the allowance for doubtful accounts and notes reserves, $2 million of foreign exchange benefit and $1 million of other items from April 1, 2016 through March 31, 2017. |
(e) | Represents the estimated impact of acquisitions and franchise sales activity, net of brokerages that exited our franchise system as if these changes had occurred on April 1, 2016. Franchisee sales activity is comprised of new franchise agreements as well as growth through acquisitions and independent sales associate recruitment by existing franchisees with our assistance. We have made a number of assumptions in calculating such estimates and there can be no assurance that we would have generated the projected levels of EBITDA had we owned the acquired entities or entered into the franchise contracts as of April 1, 2016. |
(f) | Incremental borrowing costs incurred as a result of the securitization facilities refinancing for the twelve months ended March 31, 2017. |
(g) | Represents total borrowings under the Senior Secured Credit Facility and borrowings secured by a first priority lien on our assets of $2,158 million plus $27 million of capital lease obligations less $152 million of readily available cash as of March 31, 2017. Pursuant to the terms of our Senior Secured Credit Facility and Term Loan A Facility, total senior secured net debt does not include our securitization obligations or unsecured indebtedness, including the Unsecured Notes. |
Three Months Ended | |||||||
March 31, 2017 | March 31, 2016 | ||||||
Net loss attributable to Realogy | $ | (28 | ) | $ | (42 | ) | |
Income tax benefit | (9 | ) | (24 | ) | |||
Loss before income taxes | (37 | ) | (66 | ) | |||
Interest expense, net | 39 | 73 | |||||
Depreciation and amortization | 50 | 48 | |||||
EBITDA | 52 | 55 | |||||
EBITDA adjustments: | |||||||
Restructuring costs | 5 | 9 | |||||
Former parent legacy cost, net | — | 1 | |||||
Loss on the early extinguishment of debt | 4 | — | |||||
Operating EBITDA | $ | 61 | $ | 65 |
Notional Value (in millions) | Commencement Date | Expiration Date |
$225 | July 2012 | February 2018 |
$200 | January 2013 | February 2018 |
$600 | August 2015 | August 2020 |
$450 | November 2017 | November 2022 |
(a) | Realogy Holdings Corp. ("Realogy Holdings") maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its filings under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to its management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Realogy Holdings' management, including the Chief Executive Officer and the Chief Financial Officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. |
(b) | As of the end of the period covered by this quarterly report on Form 10-Q, Realogy Holdings has carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and |
(c) | There has not been any change in Realogy Holdings' internal control over financial reporting during the period covered by this quarterly report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting. |
(a) | Realogy Group LLC ("Realogy Group") maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its filings under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to its management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Realogy Group's management, including the Chief Executive Officer and the Chief Financial Officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. |
(b) | As of the end of the period covered by this quarterly report on Form 10-Q, Realogy Group has carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that Realogy Group's disclosure controls and procedures are effective at the "reasonable assurance" level. |
(c) | There has not been any change in Realogy Group's internal control over financial reporting during the period covered by this quarterly report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting. |
(c) | The following table sets forth information relating to repurchase of shares of our common stock during the quarter ended March 31, 2017: |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of a Publicly Announced Programs (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs (1) | ||||||||
January 1-31, 2017 | 310,647 | $26.00 | 310,647 | $ | 68,327,017 | |||||||
February 1-28, 2017 | 261,206 | $26.50 | 261,206 | $ | 361,405,058 | |||||||
March 1 - 31, 2017 (2) | 1,585,008 | $28.39 | 1,585,008 | $ | 316,406,681 |
(1) | In February 2016, the Company's Board of Directors authorized a share repurchase program of up to $275 million of the Company’s common stock. As of March 31, 2017, approximately $16 million remained available for repurchase under this |
(2) | Includes 226,352 of shares purchased for which the trade date occurred in late March 2017 while settlement occurred in April 2017. |
10.1 | Fourth Amendment, dated as of January 23, 2017, to the Amended and Restated Credit Agreement, dated as of March 5, 2013, as amended, among Realogy Intermediate Holdings LLC, Realogy Group LLC, the several lenders parties thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent for the lenders, and the other agents parties thereto (Incorporated by reference to Exhibit 10.1 to Registrants' Current Report on Form 8-K filed on January 23, 2017). |
10.2 | Incremental Assumption Agreement, dated as of January 23, 2017, among Realogy Intermediate Holdings LLC, Realogy Group LLC, the financial institutions party thereto, and JPMorgan Chase Bank, N.A., as administrative agent (Incorporated by reference to Exhibit 10.2 to Registrants' Current Report on Form 8-K filed on January 23, 2017). |
10.3 | Employment Agreement dated March 13, 2017, between Realogy Holdings Corp. and Richard A. Smith (Incorporated by reference to Exhibit 10.1 to Registrants' Current Report on Form 8-K filed on March 17, 2017). |
10.4 | Letter Agreement dated February 23, 2017, between Realogy Holdings Corp. and Alexander E. Perriello (Incorporated by reference to Exhibit 10.20 to Registrants' Form 10-K for the year ended December 31, 2017). |
15.1* | Letter Regarding Unaudited Interim Financial Statements. |
31.1* | Certification of the Chief Executive Officer of Realogy Holdings Corp. pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended. |
31.2* | Certification of the Chief Financial Officer of Realogy Holdings Corp. pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended. |
31.3* | Certification of the Chief Executive Officer of Realogy Group LLC pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended. |
31.4* | Certification of the Chief Financial Officer of Realogy Group LLC pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended. |
32.1* | Certification for Realogy Holdings Corp. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2* | Certification for Realogy Group LLC pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS ^ | XBRL Instance Document. |
101.SCH ^ | XBRL Taxonomy Extension Schema Document. |
101.CAL^ | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF ^ | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB ^ | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE ^ | XBRL Taxonomy Extension Presentation Linkbase Document. |
* | Filed herewith. |
^ | Furnished electronically with this report. |
1. | I have reviewed this quarterly report on Form 10-Q of Realogy Holdings Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of Realogy Holdings Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of Realogy Group LLC; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of Realogy Group LLC; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Document And Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
May 02, 2017 |
|
Entity Information [Line Items] | ||
Document Period End Date | Mar. 31, 2017 | |
Entity Registrant Name | REALOGY HOLDINGS CORP. | |
Entity Central Index Key | 0001398987 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 137,993,866 | |
Realogy Group LLC [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | REALOGY GROUP LLC | |
Entity Central Index Key | 0001355001 | |
Entity Filer Category | Non-accelerated Filer |
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||||||||||
Revenues | |||||||||||||
Gross commission income | $ 881 | $ 826 | |||||||||||
Service revenue | 194 | 190 | |||||||||||
Franchise fees | 75 | 69 | |||||||||||
Other | 53 | 49 | |||||||||||
Net revenues | [1],[2] | 1,203 | 1,134 | ||||||||||
Expenses | |||||||||||||
Commission and other agent-related costs | 605 | 558 | |||||||||||
Operating | 376 | 367 | |||||||||||
Marketing | 62 | 58 | |||||||||||
General and administrative | 96 | 86 | |||||||||||
Former parent legacy costs, net | 0 | 1 | |||||||||||
Restructuring costs | 5 | 9 | |||||||||||
Depreciation and amortization | 50 | [3] | 48 | [4] | |||||||||
Interest expense, net | 39 | [3] | 73 | [4] | |||||||||
Loss on the early extinguishment of debt | [3] | 4 | 0 | ||||||||||
Total expenses | 1,237 | 1,200 | |||||||||||
Loss before income taxes, equity in losses and noncontrolling interests | (34) | (66) | |||||||||||
Income tax benefit | (9) | [3] | (24) | [4] | |||||||||
Equity in losses of unconsolidated entities | 3 | 0 | |||||||||||
Net loss | (28) | (42) | |||||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | |||||||||||
Net loss attributable to Realogy Holdings and Realogy Group | $ (28) | [3] | $ (42) | [4] | |||||||||
Loss per share attributable to Realogy Holdings: | |||||||||||||
Basic loss per share | $ (0.20) | $ (0.29) | |||||||||||
Diluted loss per share | $ (0.20) | $ (0.29) | |||||||||||
Weighted average common and common equivalent shares of Realogy Holdings outstanding: | |||||||||||||
Basic | 139.7 | 146.5 | |||||||||||
Diluted | 139.7 | 146.5 | |||||||||||
Cash dividends declared per share (beginning in August 2016) | $ 0.09 | $ 0.00 | |||||||||||
|
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (28) | $ (42) |
Currency translation adjustment | 1 | 0 |
Other comprehensive income, before tax | 1 | 0 |
Income tax expense related to items of other comprehensive income | 0 | 0 |
Other comprehensive income, net of tax | 1 | 0 |
Comprehensive loss | (27) | (42) |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive loss attributable to Realogy Holdings and Realogy Group | $ (27) | $ (42) |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 12 | $ 13 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares outstanding | 138,733,646 | 140,227,692 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Basis Of Presentation |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis Of Presentation | BASIS OF PRESENTATION Realogy Holdings Corp. ("Realogy Holdings", "Realogy" or the "Company") is a holding company for its consolidated subsidiaries including Realogy Intermediate Holdings LLC ("Realogy Intermediate") and Realogy Group LLC ("Realogy Group") and its consolidated subsidiaries. Realogy, through its subsidiaries, is a global provider of residential real estate services. Neither Realogy Holdings, the indirect parent of Realogy Group, nor Realogy Intermediate, the direct parent company of Realogy Group, conducts any operations other than with respect to its respective direct or indirect ownership of Realogy Group. As a result, the consolidated financial positions, results of operations, comprehensive loss and cash flows of Realogy Holdings, Realogy Intermediate and Realogy Group are the same. The accompanying Condensed Consolidated Financial Statements include the financial statements of Realogy Holdings and Realogy Group. Realogy Holdings' only asset is its investment in the common stock of Realogy Intermediate, and Realogy Intermediate's only asset is its investment in Realogy Group. Realogy Holdings' only obligations are its guarantees of certain borrowings and certain franchise obligations of Realogy Group. All expenses incurred by Realogy Holdings and Realogy Intermediate are for the benefit of Realogy Group and have been reflected in Realogy Group's Condensed Consolidated Financial Statements. The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America and with Article 10 of Regulation S-X. Interim results may not be indicative of full year performance because of seasonal and short-term variations. The Company has eliminated all material intercompany transactions and balances between entities consolidated in these financial statements. In presenting the Condensed Consolidated Financial Statements, management makes estimates and assumptions that affect the amounts reported and the related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ materially from those estimates. In management's opinion, the accompanying Condensed Consolidated Financial Statements reflect all normal and recurring adjustments necessary to present fairly Realogy Holdings and Realogy Group's financial position as of March 31, 2017 and the results of operations and comprehensive loss for the three months ended March 31, 2017 and 2016 and cash flows for the three months ended March 31, 2017 and 2016. As the interim Condensed Consolidated Financial Statements are prepared using the same accounting principles and policies used to prepare the annual consolidated financial statements, they should be read in conjunction with the Consolidated Financial Statements for the year ended December 31, 2016 included in the Annual Report on Form 10-K for the year ended December 31, 2016. Fair Value Measurements The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.
The availability of observable inputs can vary from asset to asset and is affected by a wide variety of factors, including, for example, the type of asset, whether the asset is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level III. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value of financial instruments is generally determined by reference to quoted market values. In cases where quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques, as appropriate. The fair value of interest rate swaps is determined based upon a discounted cash flow approach. The Company measures financial instruments at fair value on a recurring basis and recognizes transfers within the fair value hierarchy at the end of the fiscal quarter in which the change in circumstances that caused the transfer occurred. There have been no transfers between Level I, II or III assets or liabilities during the three months ended March 31, 2017. The following table summarizes fair value measurements by level at March 31, 2017 for assets and liabilities measured at fair value on a recurring basis:
The following table summarizes fair value measurements by level at December 31, 2016 for assets and liabilities measured at fair value on a recurring basis:
The fair value of the Company’s contingent consideration for acquisitions is measured using a probability weighted-average discount rate to estimate future cash flows based upon the likelihood of achieving future operating results for individual acquisitions. These assumptions are deemed to be unobservable inputs and as such the Company’s contingent consideration is classified within Level III of the valuation hierarchy. The Company reassesses the fair value of the contingent consideration liabilities on a quarterly basis. The following table presents changes in Level III financial liabilities measured at fair value on a recurring basis:
The following table summarizes the principal amount of the Company’s indebtedness compared to the estimated fair value, primarily determined by quoted market values, at:
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Investment in PHH Home Loans The Company owns 49.9% of PHH Home Loans, a mortgage origination venture formed in 2005 created for the purpose of originating and selling mortgage loans primarily sourced through the Company’s real estate brokerage and relocation businesses. PHH Corporation ("PHH") owns the remaining percentage. In connection with the joint venture, the Company recorded $4 million in losses related to its equity investment in PHH Home Loans for the three months ended March 31, 2017 and no equity in earnings for the three months ended March 31, 2016. The Company received no cash dividends from PHH Home Loans during both the three months ended March 31, 2017 and March 31, 2016. The Company's investment in PHH Home Loans is $55 million at March 31, 2017 and $59 million at December 31, 2016. On February 15, 2017, Realogy announced that it and Guaranteed Rate, Inc. (“Guaranteed Rate”) agreed to form a new joint venture, Guaranteed Rate Affinity, LLC ("Guaranteed Rate Affinity"), which is expected to begin doing business in mid-2017. Commencement of operations is subject to the closing of the transactions contemplated by an asset purchase agreement under which Guaranteed Rate Affinity will acquire certain assets of the mortgage operations of PHH Home Loans, the existing joint venture between Realogy and PHH Mortgage Corporation. The asset purchase agreement is subject to approval by PHH Corporation’s shareholders and other closing conditions and the movement of employees from the existing joint venture to the new joint venture is expected to be completed in a series of phases. The initial phase is expected to occur in mid-2017 and the final phase is expected to occur during the fourth quarter of 2017. Income Taxes The Company's provision for income taxes in interim periods is computed by applying its estimated annual effective tax rate against the income before income taxes for the period. In addition, non-recurring or discrete items are recorded in the period in which they occur. The provision for income taxes was a benefit of $9 million for the three months ended March 31, 2017 and a benefit of $24 million for the three months ended March 31, 2016. Derivative Instruments The Company records derivatives and hedging activities on the balance sheet at their respective fair values. The Company uses foreign currency forward contracts largely to manage its exposure to changes in foreign currency exchange rates associated with its foreign currency denominated receivables and payables. The Company primarily manages its foreign currency exposure to the British Pound, Euro, Swiss Franc and Canadian Dollar. The Company has not elected to utilize hedge accounting for these forward contracts; therefore, any change in fair value is recorded in the Condensed Consolidated Statements of Operations. However, the fluctuations in the value of these forward contracts generally offset the impact of changes in the value of the underlying risk that they are intended to economically hedge. As of March 31, 2017, the Company had outstanding foreign currency forward contracts with a fair value of less than $1 million and a notional value of $27 million. As of December 31, 2016, the Company had outstanding foreign currency forward contracts with a fair value of $2 million and a notional value of $29 million. The Company also enters into interest rate swaps to manage its exposure to changes in interest rates associated with its variable rate borrowings. The Company has interest rate swaps with an aggregate notional value of $1,475 million to offset the variability in cash flows resulting from the term loan facilities as follows:
The swaps help to protect our outstanding variable rate borrowings from future interest rate volatility. The Company has not elected to utilize hedge accounting for these interest rate swaps; therefore, any change in fair value is recorded in the Condensed Consolidated Statements of Operations. The fair value of derivative instruments was as follows:
The effect of derivative instruments on earnings was as follows:
Restricted Cash Restricted cash primarily relates to amounts specifically designated as collateral for the repayment of outstanding borrowings under the Company’s securitization facilities. Such amounts approximated $5 million and $7 million at March 31, 2017 and December 31, 2016, respectively, and are primarily included within other current assets on the Company’s Condensed Consolidated Balance Sheets. Supplemental Cash Flow Information Significant non-cash transactions during the three months ended March 31, 2017 and March 31, 2016 included capital lease additions of $5 million and $4 million, respectively, which resulted in non-cash additions to property and equipment, net and other non-current liabilities. Stock Repurchases The Company may repurchase shares of its common stock under authorizations made from its Board of Directors. Shares repurchased are retired and not displayed separately as treasury stock on the consolidated financial statements. The par value of the shares repurchased and retired is deducted from common stock and the excess of the purchase price over par value is first charged against any available additional paid-in capital with the balance charged to retained earnings. Direct costs incurred to repurchase the shares are included in the total cost of the shares. In February 2016, the Company's Board of Directors authorized a share repurchase program of up to $275 million of the Company's common stock. On February 23, 2017, the Company's Board of Directors authorized a new share repurchase program of up to an additional $300 million of the Company's common stock. As of March 31, 2017, the Company had repurchased and retired 9.3 million shares of common stock under the February 2016 share repurchase program for an aggregate of $259 million at a weighted average market price of $27.93 per share, including 2.2 million shares of common stock repurchased during the first quarter of 2017 for $60 million at a weighted average market price of $27.82 per share. As of March 31, 2017, approximately $16 million remained available for repurchase under the February 2016 share repurchase program and $300 million remained available for repurchase under the February 2017 share repurchase plan. Dividend Policy In August 2016, the Company’s Board of Directors approved the initiation of a quarterly cash dividend policy of $0.09 per share on its common stock. During the three months ended March 31, 2017, the Board declared and paid a cash dividend of $0.09 per share of the Company’s common stock. The declaration and payment of any future dividend will be subject to the discretion of the Board of Directors and will depend on a variety of factors, including the Company’s financial condition and results of operations, contractual restrictions, including restrictive covenants contained in the Company’s credit agreements, and the indentures governing the Company’s outstanding debt securities, capital requirements and other factors that the Board of Directors deems relevant. Pursuant to the Company’s policy, the dividends payable in cash are treated as a reduction of additional paid-in capital since the Company is currently in a retained deficit position. Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. In August 2016, the FASB issued a new standard on classification of cash receipts and payments on the statement of cash flows intending to reduce diversity in practice on how certain transactions are classified. In addition, in November 2016, the FASB issued a new standard requiring that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new standards are effective for annual periods beginning after December 15, 2017 and will require a retrospective application at the beginning of the earliest comparative period presented in the year of adoption. The Company is currently evaluating the impact of the standards on its consolidated financial statements. In February 2016, the FASB issued its new standard on leases which requires virtually all leases to be recognized on the balance sheet. Lessees will recognize a right-of-use asset and a lease liability for all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance leases. Operating leases will result in straight-line expense, similar to current operating leases, while finance leases will result in a front-loaded expense pattern, similar to current capital leases. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. The new standard is effective for annual periods beginning after December 15, 2018. Early adoption is permitted. The new leasing standard requires modified retrospective transition, which requires application of the new guidance at the beginning of the earliest comparative period presented in the year of adoption. The Company is currently evaluating the impact of the standard on its consolidated financial statements. In May 2014, the FASB issued a standard on revenue recognition that will impact most companies to some extent. The objective of the revenue standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and the timing of revenue recognition. The new standard permits for two alternative implementation methods, the use of either (1) full retrospective application to each prior reporting period presented or (2) modified retrospective application in which the cumulative effect of initially applying the revenue standard is recognized as an adjustment to the opening balance of retained earnings in the period of adoption. The Company is currently evaluating implementation method and plans to adopt the new standard in the first quarter of 2018. After a review of the Company's revenue streams, the Company does not expect the new standard to have a material impact on financial results as the majority of the Company's revenue is recognized at the completion of a homesale transaction which will not result in a change in the timing of recognition of revenue transactions under the new revenue recognition guidance. |
Acquisitions |
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Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS 2017 Acquisitions During the three months ended March 31, 2017, the Company acquired five real estate brokerage operations through its wholly owned subsidiary, NRT, for aggregate cash consideration of $1 million, resulting in goodwill of $1 million. None of the 2017 acquisitions were significant to the Company’s results of operations, financial position or cash flows individually or in the aggregate. 2016 Acquisitions During the year ended December 31, 2016, the Company acquired eleven real estate brokerage and property management operations through its wholly owned subsidiary, NRT, for aggregate cash consideration of $74 million and established $9 million of contingent consideration. These acquisitions resulted in goodwill of $52 million, customer relationships of $20 million, pendings and listings of $6 million, other intangible assets of $3 million, other assets of $5 million and other liabilities of $3 million. During the year ended December 31, 2016, the Company acquired one title and settlement operation through its wholly owned subsidiary, TRG, for cash consideration of $24 million and established $10 million of contingent consideration. This acquisition resulted in goodwill of $20 million, title plant of $7 million, pendings of $5 million, trademarks of $3 million, other intangible assets of $2 million, other assets of $6 million and other liabilities of $9 million. None of the 2016 acquisitions were significant to the Company’s results of operations, financial position or cash flows individually or in the aggregate. |
Intangible Assets |
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Intangible Assets | INTANGIBLE ASSETS Goodwill by segment and changes in the carrying amount are as follows:
Intangible assets are as follows:
_______________ (a) Generally amortized over a period of 30 years.
Intangible asset amortization expense is as follows:
Based on the Company’s amortizable intangible assets as of March 31, 2017, the Company expects related amortization expense for the remainder of 2017, the four succeeding years and thereafter to be approximately $73 million, $97 million, $96 million, $94 million, $92 million and $1,178 million, respectively. |
Accrued Expenses And Other Current Liabilities |
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Accrued Expenses And Other Current Liabilities | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of:
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short And Long-Term Debt | SHORT AND LONG-TERM DEBT Total indebtedness is as follows:
Indebtedness Table As of March 31, 2017, the Company’s borrowing arrangements were as follows:
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Maturities Table As of March 31, 2017, the combined aggregate amount of maturities for long-term borrowings, excluding securitization obligations, for the remainder of 2017 and each of the next four years is as follows:
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Senior Secured Credit Facility In July 2016, the Company entered into a third amendment (the “Third Amendment”) to the Amended and Restated Credit Agreement, dated as of March 5, 2013, as amended. The Third Amendment replaced the $1,858 million Term Loan B due March 2020 with a new $1,100 million Term Loan B due July 20, 2022. In January 2017, the Company entered into a fourth amendment (the “Fourth Amendment” to the Amended and Restated Credit Agreement, as so amended, the "Senior Secured Credit Agreement") that repriced the Term Loan B through a refinancing of the existing term loan with a new Term Loan B. The Fourth Amendment reduced the interest rate by 75 basis points but did not change the maturity date for the Term Loan B. The Company also entered into an Incremental Assumption Agreement to the Senior Secured Credit Agreement pursuant to which the Company increased the borrowing capacity under its Revolving Credit Facility to $1,050 million from the existing $815 million. The Senior Secured Credit Agreement provides for:
The Senior Secured Credit Agreement permits the Company to obtain up to $500 million of additional credit facilities from lenders reasonably satisfactory to the administrative agent and us, without the consent of the existing lenders under the new senior secured credit facility, plus an unlimited amount if Realogy Group's senior secured leverage ratio is less than 3.50 to 1.00 on a pro forma basis. Subject to certain restrictions, the Senior Secured Credit Agreement also permits us to issue senior secured or unsecured notes in lieu of any incremental facility. The obligations under the Senior Secured Credit Agreement are secured to the extent legally permissible by substantially all of the assets of Realogy Group, Realogy Intermediate and all of their domestic subsidiaries, other than certain excluded subsidiaries. Realogy Group’s Senior Secured Credit Agreement contains financial, affirmative and negative covenants and requires Realogy Group to maintain a senior secured leverage ratio, not to exceed 4.75 to 1.00, and pursuant to the second amendment discussed above, the leverage ratio is tested quarterly regardless of the amount of borrowings outstanding and letters of credit issued under the revolver at the testing date. In this report, the Company refers to the term "Adjusted (Covenant) EBITDA" to mean EBITDA as so defined for purposes of determining compliance with the senior secured leverage covenant. The senior secured leverage ratio measured at any applicable quarter end is Realogy Group's total senior secured net debt divided by the trailing twelve month Adjusted (Covenant) EBITDA. Total senior secured net debt does not include unsecured indebtedness, including the Unsecured Notes as well as the securitization obligations. At March 31, 2017, Realogy Group’s senior secured leverage ratio was 2.35 to 1.00. Term Loan A Facility In October 2015, Realogy Group entered into the Term Loan A senior secured credit agreement which provides for a five-year, $435 million loan issued at par with a maturity date of October 23, 2020 (the “Term Loan A”) and has terms substantially similar to the Senior Secured Credit Agreement. The Term Loan A provides for quarterly amortization payments, which commenced March 31, 2016, totaling the amount per annum equal to the following percentages of the original principal amount of the Term Loan A: 5%, 5%, 7.5%, 10.0% and 12.5% for amortizations payable in 2016, 2017, 2018, 2019 and 2020, with the balance payable upon the final maturity date. The interest rates with respect to term loans under the Term Loan A are based on, at our option, adjusted LIBOR or ABR plus an additional margin subject to the following adjustments based on the Company’s then current senior secured leverage ratio:
In July 2016, Realogy Group entered into a first amendment to the Term Loan A senior secured credit agreement. Under the amendment, the Company issued the Term Loan A-1 in the amount of $355 million with a maturity date in July 2021 under its existing Term Loan A Facility and on terms substantially similar to its existing Term Loan A. The Term Loan A-1 provides for quarterly amortization payments totaling 2.5%, 2.5%, 5%, 7.5% and 10.0% of the original principal amount of the Term Loan A-1, which commenced September 30, 2016 continuing through June 30, 2021. The interest rates with respect to term loans under the Term Loan A-1 are based on, at our option, adjusted LIBOR or ABR plus an additional margin subject to the following adjustments based on the Company’s then current senior secured leverage ratio:
Consistent with the Senior Secured Credit Agreement, the Term Loan A Facility permits the Company to obtain up to $500 million of additional credit facilities from lenders reasonably satisfactory to the administrative agent and the company, without the consent of the existing lenders under the Term Loan A, plus an unlimited amount if the Company's senior secured leverage ratio is less than 3.50 to 1.00 on a pro forma basis. Subject to certain restrictions, the Term Loan A Facility also permits us to issue senior secured or unsecured notes in lieu of any incremental facility. Unsecured Notes The 4.50% Senior Notes, 5.25% Senior Notes and 4.875% Senior Notes (each as defined below, collectively the "Unsecured Notes") are unsecured senior obligations of Realogy Group that mature on April 15, 2019, December 1, 2021 and June 1, 2023, respectively. Interest on the Unsecured Notes is payable each year semiannually on April 15 and October 15 for the 4.50% Senior Notes and June 1 and December 1 for both the 5.25% Senior Notes and 4.875% Senior Notes. The Unsecured Notes are guaranteed on an unsecured senior basis by each domestic subsidiary of Realogy Group that is a guarantor under the Senior Secured Credit Facility and Realogy Group's outstanding debt securities and are guaranteed by Realogy Holdings on an unsecured senior subordinated basis. Other Debt Facilities The Company has an Unsecured Letter of Credit Facility to provide for the issuance of letters of credit required for general corporate purposes by the Company. At March 31, 2017, the capacity of the facility was $131 million. The facility's expiration dates are as follows:
The fixed pricing to the Company is based on a spread above the credit default swap rate for senior unsecured debt obligations of the Company over the applicable letter of credit period. Realogy Group's obligations under the Unsecured Letter of Credit Facility are guaranteed on an unsecured senior basis by each domestic subsidiary of Realogy Group that is a guarantor under the Senior Secured Credit Facility and Realogy Group's outstanding debt securities. As of March 31, 2017, $126 million of the Unsecured Letter of Credit Facility is being utilized. Securitization Obligations Realogy Group has secured obligations through Apple Ridge Funding LLC under a securitization program. The program expires in June 2017 and has a capacity of $325 million. At March 31, 2017, Realogy Group has $160 million of outstanding borrowings under the facility. Realogy Group, through a special purpose entity known as Cartus Financing Limited, has agreements providing for a £10 million revolving loan facility and a £5 million working capital facility, both of which expire in August 31, 2017. There are $12 million of outstanding borrowings on the facilities at March 31, 2017. These Cartus Financing Limited facilities are secured by the relocation assets of a U.K. government contract in this special purpose entity and are therefore classified as permitted securitization financings as defined in Realogy Group’s Senior Secured Credit Facility and the indentures governing the Unsecured Notes. The Apple Ridge entities and the Cartus Financing Limited entity are consolidated special purpose entities that are utilized to securitize relocation receivables and related assets. These assets are generated from advancing funds on behalf of clients of Realogy Group’s relocation business in order to facilitate the relocation of their employees. Assets of these special purpose entities are not available to pay Realogy Group’s general obligations. Under the Apple Ridge program, provided no termination or amortization event has occurred, any new receivables generated under the designated relocation management agreements are sold into the securitization program and as new eligible relocation management agreements are entered into, the new agreements are designated to the program. The Apple Ridge program has restrictive covenants and trigger events, including performance triggers linked to the age and quality of the underlying assets, foreign obligor limits, multicurrency limits, financial reporting requirements, restrictions on mergers and change of control, any uncured breach of Realogy Group’s senior secured leverage ratio under Realogy Group’s Senior Secured Credit Facility, and cross-defaults to Realogy Group’s material indebtedness. The occurrence of a trigger event under the Apple Ridge securitization facility could restrict our ability to access new or existing funding under this facility or result in termination of the facility, either of which would adversely affect the operation of our relocation business. Certain of the funds that Realogy Group receives from relocation receivables and related assets must be utilized to repay securitization obligations. These obligations were collateralized by $216 million and $238 million of underlying relocation receivables and other related relocation assets at March 31, 2017 and December 31, 2016, respectively. Substantially all relocation related assets are realized in less than twelve months from the transaction date. Accordingly, all of Realogy Group’s securitization obligations are classified as current in the accompanying Condensed Consolidated Balance Sheets. Interest incurred in connection with borrowings under these facilities amounted to $1 million for both the three months ended March 31, 2017 and 2016. This interest is recorded within net revenues in the accompanying Condensed Consolidated Statements of Operations as related borrowings are utilized to fund Realogy Group's relocation business where interest is generally earned on such assets. These securitization obligations represent floating rate debt for which the average weighted interest rate was 3.3% and 2.6% for the three months ended March 31, 2017 and 2016, respectively. Loss on the Early Extinguishment of Debt As a result of the refinancing transaction, the Company recorded a loss on the early extinguishment of debt of $4 million during the three months ended March 31, 2017. |
Restructuring Costs Restructuring Costs (Notes) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] |
The restructuring charges for the three months ended March 31, 2017 and 2016 were $5 million and $9 million, respectively. The components of the restructuring charges for the three months ended March 31, 2017 and 2016 were as follows:
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Business Optimization Initiative During the fourth quarter of 2015, the Company began a business optimization initiative that focuses on maximizing the efficiency and effectiveness of the cost structure of each of the Company's business units. The action is designed to improve client service levels across each of the business units while enhancing the Company's profitability and incremental margins. The plan focuses on several key areas of opportunity which include process improvement efficiencies, office footprint optimization, leveraging technology and media spend, centralized procurement, outsourcing administrative services and organizational design. The expected costs of activities undertaken in connection with the restructuring plan are expected to be largely completed by mid-2017. The following is a reconciliation of the beginning and ending restructuring reserve balances for the Business Optimization Initiative:
The following table shows the total restructuring costs expected to be incurred by type of cost for the Business Optimization Initiative:
The following table shows the total restructuring costs expected to be incurred by reportable segment for the Business Optimization Initiative:
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Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation |
The Company has stock-based compensation plans (the 2007 Stock Incentive Plan and the 2012 Long-Term Incentive Plan) under which incentive equity awards such as non-qualified stock options, rights to purchase shares of common stock, restricted stock, restricted stock units ("RSUs"), performance restricted stock units and performance share units ("PSUs") may be issued to employees, consultants and directors of Realogy. The Company's stockholders approved the Amended and Restated 2012 Long-Term Incentive Plan at the 2016 Annual Meeting of Stockholders held on May 4, 2016 (the "Amended and Restated 2012 LTIP"). The Amended and Restated 2012 LTIP increases the number of shares authorized for issuance under that plan by 9.8 million shares. The total number of shares authorized for issuance under the plans is 19.4 million shares. Awards granted under the Amended and Restated 2012 LTIP utilizing the additional 9.8 million share reserve, except options and stock appreciation rights, must be counted against the foregoing share limit on a 2.22 share to one basis for each share actually granted in connection with such award. As of March 31, 2017, the total number of shares available for future grants under the Amended and Restated 2012 LTIP was approximately 3 million shares. The Company does not expect to issue any additional awards under the 2007 Stock Incentive Plan. Consistent with the 2016 long-term incentive equity awards, the 2017 awards include a mix of PSUs, RSUs (performance restricted stock units for the CEO and direct reports) and options. The 2017 PSUs are incentives that reward grantees based upon the Company's financial performance over a three-year performance period ending December 31, 2019. There are two PSU awards: one is based upon the total stockholder return of Realogy's common stock relative to the total stockholder return of the SPDR S&P Homebuilders Index ("XHB") (the "RTSR award"), and the other is based upon the achievement of cumulative free cash flow goals. The number of shares that may be issued under the PSU is variable and based upon the extent to which the performance goals are achieved over the performance period (with a range of payout from 0% to 175% of target for the RTSR award and 0% to 200% of target for the achievement of cumulative free cash flow award). The shares earned will be distributed in early 2020. The RSUs vest over three years, with 33.33% vesting on each anniversary of the grant date. Time-vesting of the 2017 performance RSUs for the CEO and direct reports is subject to achievement of a minimum EBITDA performance goal for 2017. The stock options have a maximum term of ten years and vest over four years, with 25% vesting on each anniversary date of the grant date. The options have an exercise price equal to the closing sale price of the Company's common stock on the date of grant. In August 2016, the Company’s Board of Directors approved the initiation of a quarterly cash dividend policy on its common stock. The Board declared a cash dividend of $0.09 per share of the Company’s common stock per quarter. When payment of cash dividends occurs, the Company issues dividend equivalent units ("DEUs") to eligible holders of outstanding RSUs and PSUs. The number of DEUs granted for each RSU or PSU is calculated by dividing the amount of the cash dividend on the number of shares covered by the RSU or PSU at the time of the related dividend record date by the closing price of the Company's stock on the related dividend payment date. The DEUs are subject to the same vesting requirements, settlement provisions, and other terms and conditions as the original award to which they relate. The issuance of DEUs have an immaterial impact on the Company's stock-based compensation activity. The fair value of RSUs and PSUs without a market condition is equal to the closing sale price of the Company's common stock on the date of grant. The fair value of the RTSR PSU award was estimated on the date of grant using the Monte Carlo Simulation method utilizing the following assumptions. Expected volatility was based on historical volatilities of the Company and select comparable companies.
A summary of RSU activity for the three months ended March 31, 2017 is presented below (number of shares in millions):
A summary of PSU activity for the three months ended March 31, 2017 is presented below (number of shares in millions):
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The fair value of the options was estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility was based on historical volatilities of the Company and select comparable companies. The expected term of the options granted represents the period of time that options are expected to be outstanding and is based on the simplified method. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of the grant, which corresponds to the expected term of the options.
A summary of stock option unit activity for the three months ended March 31, 2017 is presented below (number of shares in millions):
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Stock-Based Compensation Expense As of March 31, 2017, based on current performance achievement expectations, there was $69 million of unrecognized compensation cost related to incentive equity awards under the plans which will be recorded in future periods as compensation expense over a remaining weighted average period of approximately 1.4 years. The Company recorded stock-based compensation expense related to the incentive equity awards of $12 million for both the three months ended March 31, 2017 and 2016. |
Transactions With Former Parent And Subsidiaries |
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Mar. 31, 2017 | |||||
Related Party Transactions [Abstract] | |||||
Transactions With Former Parent And Subsidiaries |
Transfer of Cendant Corporate Liabilities and Issuance of Guarantees to Cendant and Affiliates Realogy Group (then Realogy Corporation) separated from Cendant on July 31, 2006 (the "Separation"), pursuant to a plan by Cendant (now known as Avis Budget Group, Inc.) to separate into four independent companies—one for each of Cendant's business units—real estate services (Realogy), travel distribution services ("Travelport"), hospitality services, including timeshare resorts ("Wyndham Worldwide"), and vehicle rental ("Avis Budget Group"). Realogy Group has certain guarantee commitments with Cendant (pursuant to the assumption of certain liabilities and the obligation to indemnify Cendant, Wyndham Worldwide and Travelport for such liabilities). These guarantee arrangements primarily relate to certain contingent litigation liabilities, contingent tax liabilities, and other corporate liabilities, of which Realogy Group assumed and is generally responsible for 62.5%. Upon separation from Cendant, the liabilities assumed by Realogy Group were comprised of certain Cendant corporate liabilities which were recorded on the historical books of Cendant as well as additional liabilities which were established for guarantees issued at the date of Separation related to certain unresolved contingent matters that could arise during the guarantee period. Regarding the guarantees, if any of the companies responsible for all or a portion of such liabilities were to default in its payment of costs or expenses related to any such liability, Realogy Group would be responsible for a portion of the defaulting party or parties’ obligation. To the extent such recorded liabilities are in excess or are not adequate to cover the ultimate payment amounts, such excess or deficiency will be reflected in the results of operations in future periods. The due to former parent balance was $29 million and $28 million at March 31, 2017 and December 31, 2016, respectively. The due to former parent balance was comprised of the Company’s portion of the following: (i) Cendant’s remaining state and foreign contingent tax liabilities, (ii) accrued interest on contingent tax liabilities, (iii) potential liabilities related to Cendant’s terminated or divested businesses, and (iv) potential liabilities related to the residual portion of accruals for Cendant operations. |
Earnings Per Share Earnings Per Share (Notes) |
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Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 9. EARNINGS (LOSS) PER SHARE Earnings (loss) per share attributable to Realogy Holdings Basic earnings per share is computed based on net income attributable to Realogy Holdings stockholders divided by the basic weighted-average shares outstanding during the period. Dilutive earnings per share is computed consistently with the basic computation while giving effect to all dilutive potential common shares and common share equivalents that were outstanding during the period. Realogy Holdings uses the treasury stock method to reflect the potential dilutive effect of unvested stock awards and unexercised options. The Company was in a net loss position for the three months ended March 31, 2017 and 2016, and therefore the impact of incentive equity awards were excluded from the computation of dilutive loss per share as the inclusion of such amounts would be anti-dilutive. At March 31, 2017 and 2016, the number of shares of common stock issuable for incentive equity awards, with performance awards based on the achievement of 100% of target amounts, was 7.3 million and 6.0 million, respectively. In the first quarter of 2017, the Company repurchased and retired 2.2 million shares of common stock for $60 million at a weighted average market price of $27.82 per share. The shares repurchased during the first quarter of 2017 include 226,352 shares for which the trade date occurred in late March 2017 while settlement occurred in April 2017. The purchase of shares under this plan reduces the weighted-average number of shares outstanding in the basic earnings per share calculation. |
Commitments And Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Litigation The Company is involved in claims, legal proceedings, alternative dispute resolution and governmental inquiries related to alleged contract disputes, business practices, intellectual property and other commercial, employment, regulatory and tax matters. Examples of such matters include but are not limited to allegations:
Real Estate Business Litigation Strader, et al. and Hall v. PHH Corporation, et al. (U.S. District Court for the Central District of California). This is a purported class action brought by four California residents against 15 defendants, including Realogy and certain of its subsidiaries, PHH Corporation and PHH Home Loans, LLC (a joint venture between Realogy and PHH), alleging violations of Section 8(a) of RESPA. Plaintiffs seek to represent two subclasses comprised of all persons in the United States who, since January 31, 2005, (1) obtained a RESPA-covered mortgage loan from either (a) PHH Home Loans, LLC or one of its subsidiaries, or (b) one of the mortgage services managed by PHH Corporation for other lenders, and (2) paid a fee for title insurance or settlement services to TRG or one of its subsidiaries. Plaintiffs allege, among other things, that PHH Home Loans, LLC operates in violation of RESPA and that the other defendants violate RESPA by referring business to one another under agreements or arrangements. Plaintiffs seek treble damages and an award of attorneys’ fees, costs and disbursements. On February 5, 2016, the defendants filed a motion to dismiss the case claiming that not only do the claims lack merit, but they are time-barred under RESPA's one-year statute of limitations. On April 5, 2016, the court granted defendants' motion to dismiss with leave for the plaintiffs to amend their complaint. Plaintiffs filed a second amended complaint on April 21, 2016, and a third amended complaint on May 12, 2016. Defendants filed a motion to dismiss the third amended complaint. The Court denied the motion on October 6, 2016, without prejudice to defendants’ ability to move for summary judgment after discovery. The parties are proceeding with discovery. The case raises significant claims and rests in part on certain interpretations of RESPA by the Consumer Financial Protection Bureau ("CFPB"), which are the subject of pending industry litigation in various jurisdictions. As with all class action litigation, the case is inherently complex and subject to many uncertainties. We believe that we and the joint venture have complied with RESPA, the regulations promulgated thereunder and existing regulatory guidance. There can be no assurance, however, that if the action continues and a large class is subsequently certified, the plaintiffs will not seek a substantial damage award, penalties and other remedies. The Company will vigorously defend this action. The Company is involved in certain other claims and legal actions arising in the ordinary course of our business. Such litigation, regulatory actions and other proceedings may include, but are not limited to, actions relating to intellectual property, commercial arrangements, franchising arrangements, actions against our title company alleging it knew or should have known that others were committing mortgage fraud, standard brokerage disputes like the failure to disclose accurate square footage or hidden defects in the property such as mold, vicarious liability based upon conduct of individuals or entities outside of our control, including franchisees and independent sales associates, antitrust and anti-competition claims, general fraud claims, employment law claims, including claims challenging the classification of our sales associates as independent contractors, wage and hour classification claims, and claims alleging violations of RESPA or state consumer fraud statutes. While the results of such claims and legal actions cannot be predicted with certainty, we do not believe based on information currently available to us that the final outcome of current proceedings against the Company will have a material adverse effect on our consolidated financial position, results of operations or cash flows. Cendant Corporate Litigation Pursuant to the Separation and Distribution Agreement dated as of July 27, 2006 among Cendant, Realogy Group, Wyndham Worldwide and Travelport, each of Realogy Group, Wyndham Worldwide and Travelport have assumed certain contingent and other corporate liabilities (and related costs and expenses), which are primarily related to each of their respective businesses. In addition, Realogy Group has assumed 62.5% and Wyndham Worldwide has assumed 37.5% of certain contingent and other corporate liabilities (and related costs and expenses) of Cendant or its subsidiaries, which are not primarily related to any of the respective businesses of Realogy Group, Wyndham Worldwide, Travelport and/or Cendant’s vehicle rental operations, in each case incurred or allegedly incurred on or prior to the date of the separation of Travelport from Cendant. * * * The Company believes that it has adequately accrued for legal matters as appropriate. The Company records litigation accruals for legal matters which are both probable and estimable. Litigation and other disputes are inherently unpredictable and subject to substantial uncertainties and unfavorable resolutions could occur. In addition, class action lawsuits can be costly to defend and, depending on the class size and claims, could be costly to settle. As such, the Company could incur judgments or enter into settlements of claims with liability that are materially in excess of amounts accrued and these settlements could have a material adverse effect on the Company’s financial condition, results of operations or cash flows in any particular period. Tax Matters The Company is subject to income taxes in the United States and several foreign jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes and recording related assets and liabilities. In the ordinary course of business, there are many transactions and calculations where the ultimate tax determination is uncertain. The Company is regularly under audit by tax authorities whereby the outcome of the audits is uncertain. The Company believes there is appropriate support for positions taken on its tax returns. The liabilities that have been recorded represent the best estimates of the probable loss on certain positions and are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. However, the outcomes of tax audits are inherently uncertain. Under the Tax Sharing Agreement with Cendant, Wyndham Worldwide and Travelport, the Company is generally responsible for 62.5% of payments made to settle claims with respect to tax periods ending on or prior to December 31, 2006 that relate to income taxes imposed on Cendant and certain of its subsidiaries, the operations (or former operations) of which were determined by Cendant not to relate specifically to the respective businesses of Realogy, Wyndham Worldwide, Avis Budget or Travelport. With respect to any remaining legacy Cendant tax liabilities, the Company and its former parent believe there is appropriate support for the positions taken on Cendant’s tax returns. However, tax audits and any related litigation, including disputes or litigation on the allocation of tax liabilities between parties under the Tax Sharing Agreement, could result in outcomes for the Company that are different from those reflected in the Company’s historical financial statements. Contingent Liability Letter of Credit In April 2007, the Company established a standby irrevocable letter of credit for the benefit of Avis Budget Group in accordance with the Separation and Distribution Agreement. The synthetic letter of credit was utilized to support the Company’s payment obligations with respect to its share of Cendant contingent and other corporate liabilities. The stated amount of the standby irrevocable letter of credit is subject to periodic adjustment to reflect the then current estimate of Cendant contingent and other liabilities. The letter of credit was $53 million at March 31, 2017 and December 31, 2016. The standby irrevocable letter of credit will be terminated if (i) the Company’s senior unsecured credit rating is raised to BB by Standard and Poor’s or Ba2 by Moody’s or (ii) the aggregate value of the former parent contingent liabilities falls below $30 million. Escrow and Trust Deposits As a service to its customers, the Company administers escrow and trust deposits which represent undisbursed amounts received for the settlement of real estate transactions. Deposits at FDIC-insured institutions are insured up to $250 thousand. These escrow and trust deposits totaled $571 million at March 31, 2017 and $415 million at December 31, 2016. These escrow and trust deposits are not assets of the Company and, therefore, are excluded from the accompanying Condensed Consolidated Balance Sheets. However, the Company remains contingently liable for the disposition of these deposits. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION The reportable segments presented below represent the Company’s operating segments for which separate financial information is available and which is utilized on a regular basis by its chief operating decision maker to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its operating segments. Management evaluates the operating results of each of its reportable segments based upon revenue and EBITDA, which is defined as net income (loss) before depreciation and amortization, interest (income) expense, net (other than Relocation Services interest for relocation receivables and securitization obligations) and income taxes, each of which is presented in the Company’s Condensed Consolidated Statements of Operations. The Company’s presentation of EBITDA may not be comparable to similar measures used by other companies.
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Basis Of Presentation Basis of Presentation (Policies) |
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Mar. 31, 2017 | ||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||
Fair Value Measurement, Policy | The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.
The availability of observable inputs can vary from asset to asset and is affected by a wide variety of factors, including, for example, the type of asset, whether the asset is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level III. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value of financial instruments is generally determined by reference to quoted market values. In cases where quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques, as appropriate. The fair value of interest rate swaps is determined based upon a discounted cash flow approach. The Company measures financial instruments at fair value on a recurring basis and recognizes transfers within the fair value hierarchy at the end of the fiscal quarter in which the change in circumstances that caused the transfer occurred. There have been no transfers between Level I, II or III assets or liabilities during the three months ended March 31, 2017. |
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Income Tax, Policy | Income Taxes The Company's provision for income taxes in interim periods is computed by applying its estimated annual effective tax rate against the income before income taxes for the period. In addition, non-recurring or discrete items are recorded in the period in which they occur. The provision for income taxes was a benefit of $9 million for the three months ended March 31, 2017 and a benefit of $24 million for the three months ended March 31, 2016. |
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Derivatives, Policy | Derivative Instruments The Company records derivatives and hedging activities on the balance sheet at their respective fair values. The Company uses foreign currency forward contracts largely to manage its exposure to changes in foreign currency exchange rates associated with its foreign currency denominated receivables and payables. The Company primarily manages its foreign currency exposure to the British Pound, Euro, Swiss Franc and Canadian Dollar. The Company has not elected to utilize hedge accounting for these forward contracts; therefore, any change in fair value is recorded in the Condensed Consolidated Statements of Operations. However, the fluctuations in the value of these forward contracts generally offset the impact of changes in the value of the underlying risk that they are intended to economically hedge. As of March 31, 2017, the Company had outstanding foreign currency forward contracts with a fair value of less than $1 million and a notional value of $27 million. As of December 31, 2016, the Company had outstanding foreign currency forward contracts with a fair value of $2 million and a notional value of $29 million. The Company also enters into interest rate swaps to manage its exposure to changes in interest rates associated with its variable rate borrowings. The Company has interest rate swaps with an aggregate notional value of $1,475 million to offset the variability in cash flows resulting from the term loan facilities as follows:
The swaps help to protect our outstanding variable rate borrowings from future interest rate volatility. The Company has not elected to utilize hedge accounting for these interest rate swaps; therefore, any change in fair value is recorded in the Condensed Consolidated Statements of Operations. |
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Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy | Restricted Cash Restricted cash primarily relates to amounts specifically designated as collateral for the repayment of outstanding borrowings under the Company’s securitization facilities. Such amounts approximated $5 million and $7 million at March 31, 2017 and December 31, 2016, respectively, and are primarily included within other current assets on the Company’s Condensed Consolidated Balance Sheets. |
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Stock Repurchase Policy | Stock Repurchases The Company may repurchase shares of its common stock under authorizations made from its Board of Directors. Shares repurchased are retired and not displayed separately as treasury stock on the consolidated financial statements. The par value of the shares repurchased and retired is deducted from common stock and the excess of the purchase price over par value is first charged against any available additional paid-in capital with the balance charged to retained earnings. Direct costs incurred to repurchase the shares are included in the total cost of the shares. In February 2016, the Company's Board of Directors authorized a share repurchase program of up to $275 million of the Company's common stock. On February 23, 2017, the Company's Board of Directors authorized a new share repurchase program of up to an additional $300 million of the Company's common stock. As of March 31, 2017, the Company had repurchased and retired 9.3 million shares of common stock under the February 2016 share repurchase program for an aggregate of $259 million at a weighted average market price of $27.93 per share, including 2.2 million shares of common stock repurchased during the first quarter of 2017 for $60 million at a weighted average market price of $27.82 per share. As of March 31, 2017, approximately $16 million remained available for repurchase under the February 2016 share repurchase program and $300 million remained available for repurchase under the February 2017 share repurchase plan. |
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Dividend Policy | Dividend Policy In August 2016, the Company’s Board of Directors approved the initiation of a quarterly cash dividend policy of $0.09 per share on its common stock. During the three months ended March 31, 2017, the Board declared and paid a cash dividend of $0.09 per share of the Company’s common stock. The declaration and payment of any future dividend will be subject to the discretion of the Board of Directors and will depend on a variety of factors, including the Company’s financial condition and results of operations, contractual restrictions, including restrictive covenants contained in the Company’s credit agreements, and the indentures governing the Company’s outstanding debt securities, capital requirements and other factors that the Board of Directors deems relevant. Pursuant to the Company’s policy, the dividends payable in cash are treated as a reduction of additional paid-in capital since the Company is currently in a retained deficit position. In August 2016, the Company’s Board of Directors approved the initiation of a quarterly cash dividend policy on its common stock. The Board declared a cash dividend of $0.09 per share of the Company’s common stock per quarter. When payment of cash dividends occurs, the Company issues dividend equivalent units ("DEUs") to eligible holders of outstanding RSUs and PSUs. The number of DEUs granted for each RSU or PSU is calculated by dividing the amount of the cash dividend on the number of shares covered by the RSU or PSU at the time of the related dividend record date by the closing price of the Company's stock on the related dividend payment date. The DEUs are subject to the same vesting requirements, settlement provisions, and other terms and conditions as the original award to which they relate. The issuance of DEUs have an immaterial impact on the Company's stock-based compensation activity. |
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New Accounting Pronouncements, Policy | Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. In August 2016, the FASB issued a new standard on classification of cash receipts and payments on the statement of cash flows intending to reduce diversity in practice on how certain transactions are classified. In addition, in November 2016, the FASB issued a new standard requiring that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new standards are effective for annual periods beginning after December 15, 2017 and will require a retrospective application at the beginning of the earliest comparative period presented in the year of adoption. The Company is currently evaluating the impact of the standards on its consolidated financial statements. In February 2016, the FASB issued its new standard on leases which requires virtually all leases to be recognized on the balance sheet. Lessees will recognize a right-of-use asset and a lease liability for all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance leases. Operating leases will result in straight-line expense, similar to current operating leases, while finance leases will result in a front-loaded expense pattern, similar to current capital leases. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. The new standard is effective for annual periods beginning after December 15, 2018. Early adoption is permitted. The new leasing standard requires modified retrospective transition, which requires application of the new guidance at the beginning of the earliest comparative period presented in the year of adoption. The Company is currently evaluating the impact of the standard on its consolidated financial statements. In May 2014, the FASB issued a standard on revenue recognition that will impact most companies to some extent. The objective of the revenue standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and the timing of revenue recognition. The new standard permits for two alternative implementation methods, the use of either (1) full retrospective application to each prior reporting period presented or (2) modified retrospective application in which the cumulative effect of initially applying the revenue standard is recognized as an adjustment to the opening balance of retained earnings in the period of adoption. The Company is currently evaluating implementation method and plans to adopt the new standard in the first quarter of 2018. After a review of the Company's revenue streams, the Company does not expect the new standard to have a material impact on financial results as the majority of the Company's revenue is recognized at the completion of a homesale transaction which will not result in a change in the timing of recognition of revenue transactions under the new revenue recognition guidance. |
Stock-Based Compensation Stock-Based Compensation (Policies) |
3 Months Ended |
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Mar. 31, 2017 | |
Stock-Based Compensation Policies [Abstract] | |
Dividend Policy | Dividend Policy In August 2016, the Company’s Board of Directors approved the initiation of a quarterly cash dividend policy of $0.09 per share on its common stock. During the three months ended March 31, 2017, the Board declared and paid a cash dividend of $0.09 per share of the Company’s common stock. The declaration and payment of any future dividend will be subject to the discretion of the Board of Directors and will depend on a variety of factors, including the Company’s financial condition and results of operations, contractual restrictions, including restrictive covenants contained in the Company’s credit agreements, and the indentures governing the Company’s outstanding debt securities, capital requirements and other factors that the Board of Directors deems relevant. Pursuant to the Company’s policy, the dividends payable in cash are treated as a reduction of additional paid-in capital since the Company is currently in a retained deficit position. In August 2016, the Company’s Board of Directors approved the initiation of a quarterly cash dividend policy on its common stock. The Board declared a cash dividend of $0.09 per share of the Company’s common stock per quarter. When payment of cash dividends occurs, the Company issues dividend equivalent units ("DEUs") to eligible holders of outstanding RSUs and PSUs. The number of DEUs granted for each RSU or PSU is calculated by dividing the amount of the cash dividend on the number of shares covered by the RSU or PSU at the time of the related dividend record date by the closing price of the Company's stock on the related dividend payment date. The DEUs are subject to the same vesting requirements, settlement provisions, and other terms and conditions as the original award to which they relate. The issuance of DEUs have an immaterial impact on the Company's stock-based compensation activity. |
Basis Of Presentation (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | The following table summarizes fair value measurements by level at March 31, 2017 for assets and liabilities measured at fair value on a recurring basis:
The following table summarizes fair value measurements by level at December 31, 2016 for assets and liabilities measured at fair value on a recurring basis:
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents changes in Level III financial liabilities measured at fair value on a recurring basis:
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Fair Value, by Balance Sheet Grouping | The following table summarizes the principal amount of the Company’s indebtedness compared to the estimated fair value, primarily determined by quoted market values, at:
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Schedule of Derivative Instruments |
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative instruments was as follows:
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Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The effect of derivative instruments on earnings was as follows:
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Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill by segment and changes in the carrying amount | Goodwill by segment and changes in the carrying amount are as follows:
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Intangible assets | Intangible assets are as follows:
_______________ (a) Generally amortized over a period of 30 years.
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Intangible asset amortization expense | Intangible asset amortization expense is as follows:
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Accrued Expenses And Other Current Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of:
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Short And Long-Term Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Indebtedness | Total indebtedness is as follows:
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Schedule of Debt | As of March 31, 2017, the Company’s borrowing arrangements were as follows:
_______________
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Schedule of Maturities of Long-term Debt |
_______________
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Interest Rate Table for Revolving Credit Facility |
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Interest Rate Table for Term Loan A |
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Interest Rate Table for Term Loan A-1 |
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Expiration Capacity Table for Unsecured Letter of Credit Facilities | The facility's expiration dates are as follows:
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Restructuring Costs Restructuring Costs (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | The components of the restructuring charges for the three months ended March 31, 2017 and 2016 were as follows:
_______________
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Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following is a reconciliation of the beginning and ending restructuring reserve balances for the Business Optimization Initiative:
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Schedule of Expected Restructuring Costs by Cost Type [Table Text Block] | The following table shows the total restructuring costs expected to be incurred by type of cost for the Business Optimization Initiative:
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Schedule of Expected Restructuring Costs by Business Segment [Table Text Block] | The following table shows the total restructuring costs expected to be incurred by reportable segment for the Business Optimization Initiative:
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Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Market Performance Unit Award Valuation Assumptions |
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Schedule of Nonvested Share Activity | A summary of RSU activity for the three months ended March 31, 2017 is presented below (number of shares in millions):
A summary of PSU activity for the three months ended March 31, 2017 is presented below (number of shares in millions):
______________
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Summary of Stock Options Valuation Assumptions |
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Summary of Stock Options Activity | A summary of stock option unit activity for the three months ended March 31, 2017 is presented below (number of shares in millions):
______________
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues |
_______________
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EBITDA |
_______________
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Basis Of Presentation Financial Instruments - Fair Value Measurements (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of contingent consideration at December 31, 2016 | $ 50 | |
Additions: contingent consideration related to acquisitions completed during the period | 0 | |
Reductions: payments of contingent consideration (reflected in the financing section of the Consolidated Statement of Cash Flows) | (4) | |
Changes in fair value (reflected in the Consolidated Statement of Operations) | (1) | |
Fair value of contingent consideration at March 31, 2017 | 45 | |
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (included in other non-current assets) | 3 | $ 3 |
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements, Recurring | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (included in other non-current assets) | 3 | 3 |
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements, Recurring | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (included in other non-current assets) | 0 | 0 |
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (included in other non-current assets) | 0 | 0 |
Contingent Consideration for Acquisitions [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Liabilities, Fair Value Disclosure | 45 | 50 |
Contingent Consideration for Acquisitions [Member] | Fair Value, Measurements, Recurring | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Liabilities, Fair Value Disclosure | 0 | 0 |
Contingent Consideration for Acquisitions [Member] | Fair Value, Measurements, Recurring | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Liabilities, Fair Value Disclosure | 0 | 0 |
Contingent Consideration for Acquisitions [Member] | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Liabilities, Fair Value Disclosure | 45 | 50 |
Interest Rate Swap | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps (included in other current and non-current liabilities) | 27 | 33 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps (included in other current and non-current liabilities) | 0 | 0 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps (included in other current and non-current liabilities) | 27 | 33 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps (included in other current and non-current liabilities) | $ 0 | $ 0 |
Basis Of Presentation Financial Instruments - Fair Value Indebtedness Table (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
Jul. 20, 2016 |
Oct. 23, 2015 |
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---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Long-Term Debt, Gross | [1] | $ 3,830 | |||||||||||||||||||
Outstanding borrowings, securitization obligations | 172 | $ 205 | |||||||||||||||||||
Secured Debt | Term Loan B | |||||||||||||||||||||
Long-Term Debt, Gross | 1,092 | [2] | 1,094 | $ 1,100 | |||||||||||||||||
Long-term debt fair value | [3] | 1,097 | 1,100 | ||||||||||||||||||
Secured Debt | Term Loan A | |||||||||||||||||||||
Long-Term Debt, Gross | 408 | [4] | 413 | $ 435 | |||||||||||||||||
Long-term debt fair value | [3] | 408 | 414 | ||||||||||||||||||
Secured Debt | Term Loan A-1 | |||||||||||||||||||||
Long-Term Debt, Gross | 348 | [5] | 351 | [4] | $ 355 | ||||||||||||||||
Long-term debt fair value | [3] | 349 | 351 | ||||||||||||||||||
Senior Notes | 4.50% Senior Notes | |||||||||||||||||||||
Long-Term Debt, Gross | 450 | 450 | |||||||||||||||||||
Long-term debt fair value | [3] | 463 | 461 | ||||||||||||||||||
Senior Notes | 5.25% Senior Notes | |||||||||||||||||||||
Long-Term Debt, Gross | 550 | 550 | |||||||||||||||||||
Long-term debt fair value | [3] | 571 | 562 | ||||||||||||||||||
Senior Notes | 4.875% Senior Notes | |||||||||||||||||||||
Long-Term Debt, Gross | 500 | 500 | |||||||||||||||||||
Long-term debt fair value | [3] | 490 | 483 | ||||||||||||||||||
Line of Credit | Revolving Credit Facility | |||||||||||||||||||||
Long-term Line of Credit | 310 | [6],[7] | 200 | ||||||||||||||||||
Line of credit facility fair value | [3] | 310 | 200 | ||||||||||||||||||
Securitization obligations | |||||||||||||||||||||
Outstanding borrowings, securitization obligations | 172 | 205 | |||||||||||||||||||
Securitization obligations fair value | [3] | $ 172 | $ 205 | ||||||||||||||||||
|
Basis Of Presentation Investment in PHH Home Loans (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||
Equity earnings from equity method investment | $ (3) | $ 0 | |
PHH Home Loans | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment ownership percentage | 49.90% | ||
Equity earnings from equity method investment | $ (4) | 0 | |
Cash dividends from equity method investment | 0 | $ 0 | |
Carrying value of equity method investments | $ 55 | $ 59 |
Basis Of Presentation Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|||||||
Income Tax Disclosure [Abstract] | ||||||||
Income tax benefit | $ (9) | [1] | $ (24) | [2] | ||||
|
Basis Of Presentation Derivative Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Notional amount of derivative instrument | $ 27 | $ 29 | |
Foreign Exchange Contract | Not Designated as Hedging Instrument [Member] | Operating Expense [Member] | |||
Derivative [Line Items] | |||
(Gain) or Loss Recognized on Derivatives | 0 | $ 0 | |
Foreign Exchange Contract | Maximum | |||
Derivative [Line Items] | |||
Fair value of derivative instrument | 1 | 2 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount of derivative instrument | 1,475 | ||
Interest Rate Swap | Not Designated as Hedging Instrument [Member] | Interest Expense [Member] | |||
Derivative [Line Items] | |||
(Gain) or Loss Recognized on Derivatives | (1) | $ 31 | |
Interest Rate Swap | Not Designated as Hedging Instrument [Member] | Other Non-Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Fair value of interest rate swap contracts | 27 | $ 33 | |
Interest Rate Swap | July 2012 | |||
Derivative [Line Items] | |||
Notional amount of derivative instrument | 225 | ||
Interest Rate Swap | January 2013 | |||
Derivative [Line Items] | |||
Notional amount of derivative instrument | 200 | ||
Interest Rate Swap | August 2015 | |||
Derivative [Line Items] | |||
Notional amount of derivative instrument | 600 | ||
Interest Rate Swap | November 2017 | |||
Derivative [Line Items] | |||
Notional amount of derivative instrument | $ 450 |
Basis Of Presentation Restricted Cash (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Cash and Cash Equivalents [Abstract] | ||
Restricted cash balance | $ 5 | $ 7 |
Basis Of Presentation Supplemental Cash Flow Info (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Supplemental Cash Flow Information [Abstract] | ||
Capital lease additions | $ 5 | $ 4 |
Basis Of Presentation Stock Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 13 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2017 |
Feb. 23, 2017 |
Feb. 24, 2016 |
|
Stock Repurchases [Line Items] | ||||
Shares Repurchased and Retired During Period, Shares | 2.2 | 9.3 | ||
Shares Repurchased and Retired During Period, Value | $ 60 | $ 259 | ||
Weighted Average Market Price of Shares Repurchased and Retired During Period | $ 27.82 | $ 27.93 | ||
Maximum | ||||
Stock Repurchases [Line Items] | ||||
Shares Authorized under Stock Repurchase Program, | $ 300 | $ 275 | ||
2016 Stock Repurchase Plan [Member] | ||||
Stock Repurchases [Line Items] | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 16 | $ 16 | ||
2017 Stock Repurchase Plan [Member] | ||||
Stock Repurchases [Line Items] | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 300 | $ 300 |
Basis Of Presentation Dividend Policy (Details) - $ / shares |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Aug. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Dividend Policy [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.09 | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.09 | $ 0.00 |
Acquisitions (Details) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2017
USD ($)
real_estate_brokerage_operations
|
Dec. 31, 2016
USD ($)
real_estate_brokerage_operations
|
|
Business Acquisition [Line Items] | ||
Goodwill acquired | $ 1 | |
Company Owned Brokerage Services | ||
Business Acquisition [Line Items] | ||
Goodwill acquired | 1 | |
Title and Settlement Services | ||
Business Acquisition [Line Items] | ||
Goodwill acquired | $ 0 | |
NRT Business Combinations [Member] | Company Owned Brokerage Services | ||
Business Acquisition [Line Items] | ||
Number of business acquired (in real estate brokerage related operations) | real_estate_brokerage_operations | 5 | 11 |
Cash consideration paid for acquisition | $ 1 | $ 74 |
Goodwill acquired | $ 1 | 52 |
Liabilities established related to contingent consideration | 9 | |
Other assets acquired | 5 | |
Other liabilities acquired | 3 | |
NRT Business Combinations [Member] | Customer relationships | Company Owned Brokerage Services | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | 20 | |
NRT Business Combinations [Member] | Pendings and listings | Company Owned Brokerage Services | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | 6 | |
NRT Business Combinations [Member] | Other intangible assets | Company Owned Brokerage Services | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 3 | |
TRG Business Combinations [Member] | Title and Settlement Services | ||
Business Acquisition [Line Items] | ||
Number of business acquired (in real estate brokerage related operations) | real_estate_brokerage_operations | 1 | |
Cash consideration paid for acquisition | $ 24 | |
Goodwill acquired | 20 | |
Liabilities established related to contingent consideration | 10 | |
Other assets acquired | 6 | |
Other liabilities acquired | 9 | |
TRG Business Combinations [Member] | Indefinite life—Trademarks (b) | Title and Settlement Services | ||
Business Acquisition [Line Items] | ||
Indefinite-lived intangible assets acquired | 3 | |
TRG Business Combinations [Member] | Indefinite life—Title plant shares (e) | Title and Settlement Services | ||
Business Acquisition [Line Items] | ||
Indefinite-lived intangible assets acquired | 7 | |
TRG Business Combinations [Member] | Pendings and listings | Title and Settlement Services | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | 5 | |
TRG Business Combinations [Member] | Other intangible assets | Title and Settlement Services | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 2 |
Intangible Assets - Goodwill (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Goodwill [Line Items] | ||
Gross goodwill as of December 31, 2016 | $ 5,476 | |
Accumulated impairment losses | (1,786) | |
Balance at December 31, 2016 | $ 3,690 | 3,690 |
Goodwill [Roll Forward] | ||
Balance at December 31, 2016 | 3,690 | |
Goodwill acquired | 1 | |
Balance at March 31, 2017 | 3,691 | |
Real Estate Franchise Services | ||
Goodwill [Line Items] | ||
Gross goodwill as of December 31, 2016 | 3,315 | |
Accumulated impairment losses | (1,023) | |
Balance at December 31, 2016 | 2,292 | 2,292 |
Goodwill [Roll Forward] | ||
Balance at December 31, 2016 | 2,292 | |
Goodwill acquired | 0 | |
Balance at March 31, 2017 | 2,292 | |
Company Owned Brokerage Services | ||
Goodwill [Line Items] | ||
Gross goodwill as of December 31, 2016 | 1,051 | |
Accumulated impairment losses | (158) | |
Balance at December 31, 2016 | 893 | 893 |
Goodwill [Roll Forward] | ||
Balance at December 31, 2016 | 893 | |
Goodwill acquired | 1 | |
Balance at March 31, 2017 | 894 | |
Relocation Services | ||
Goodwill [Line Items] | ||
Gross goodwill as of December 31, 2016 | 641 | |
Accumulated impairment losses | (281) | |
Balance at December 31, 2016 | 360 | 360 |
Goodwill [Roll Forward] | ||
Balance at December 31, 2016 | 360 | |
Goodwill acquired | 0 | |
Balance at March 31, 2017 | 360 | |
Title and Settlement Services | ||
Goodwill [Line Items] | ||
Gross goodwill as of December 31, 2016 | 469 | |
Accumulated impairment losses | (324) | |
Balance at December 31, 2016 | 145 | $ 145 |
Goodwill [Roll Forward] | ||
Balance at December 31, 2016 | 145 | |
Goodwill acquired | 0 | |
Balance at March 31, 2017 | $ 145 |
Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||||||||||||
Carrying amount of total other intangibles | $ 652 | $ 652 | |||||||||||||||
Accumulated Amortization | 348 | 339 | |||||||||||||||
Net carrying amount of finite-lived and indefinite-lived intangible assets | 304 | 313 | |||||||||||||||
Amortizable—Franchise agreements (a) | |||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||||||||||||
Gross carrying amount of finite-lived intangible assets | [1] | 2,019 | 2,019 | ||||||||||||||
Accumulated Amortization | [1] | 675 | 658 | ||||||||||||||
Net carrying amount of finite-lived intangible assets | [1] | $ 1,344 | 1,361 | ||||||||||||||
Amortization period | 30 years | ||||||||||||||||
Amortizable—License agreements (c) | |||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||||||||||||
Gross carrying amount of finite-lived intangible assets | [2] | $ 45 | 45 | ||||||||||||||
Accumulated Amortization | [2] | 9 | 9 | ||||||||||||||
Net carrying amount of finite-lived intangible assets | [2] | $ 36 | 36 | ||||||||||||||
Amortization period | 50 years | ||||||||||||||||
Amortizable—Customer relationships (d) | |||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||||||||||||
Gross carrying amount of finite-lived intangible assets | [3] | $ 550 | 550 | ||||||||||||||
Accumulated Amortization | [3] | 318 | 312 | ||||||||||||||
Net carrying amount of finite-lived intangible assets | [3] | $ 232 | 238 | ||||||||||||||
Amortizable—Customer relationships (d) | Minimum | |||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||||||||||||
Amortization period | 2 years | ||||||||||||||||
Amortizable—Customer relationships (d) | Maximum | |||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||||||||||||
Amortization period | 20 years | ||||||||||||||||
Amortizable—Pendings and listings (f) | |||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||||||||||||
Gross carrying amount of finite-lived intangible assets | [4] | $ 6 | 6 | ||||||||||||||
Accumulated Amortization | [4] | 6 | 5 | ||||||||||||||
Net carrying amount of finite-lived intangible assets | [4] | $ 0 | 1 | ||||||||||||||
Amortization period | 5 months | ||||||||||||||||
Amortizable—Other (g) | |||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||||||||||||
Gross carrying amount of finite-lived intangible assets | [5] | $ 33 | 33 | ||||||||||||||
Accumulated Amortization | [5] | 15 | 13 | ||||||||||||||
Net carrying amount of finite-lived intangible assets | [5] | $ 18 | 20 | ||||||||||||||
Amortizable—Other (g) | Minimum | |||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||||||||||||
Amortization period | 5 years | ||||||||||||||||
Amortizable—Other (g) | Maximum | |||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||||||||||||
Amortization period | 10 years | ||||||||||||||||
Indefinite life—Trademarks (b) | |||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||||||||||||
Gross carrying amount of indefinite-lived intangible assets | [6] | $ 748 | 748 | ||||||||||||||
Indefinite life—Title plant shares (e) | |||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||||||||||||||
Gross carrying amount of indefinite-lived intangible assets | [7] | $ 18 | $ 18 | ||||||||||||||
|
Intangible Assets - Amortization Expense (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017
USD ($)
Years
|
Mar. 31, 2016
USD ($)
|
|
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset amortization expense | $ 26 | $ 26 |
The number of succeeding years for which amortization expense is disclosed | Years | 4 | |
Amortization expense for the remainder of 2017 | $ 73 | |
Amortization expense for Year Two | 97 | |
Amortization expense for Year Three | 96 | |
Amortization expense for Year Four | 94 | |
Amortization expense for Year Five | 92 | |
Amortization expense Thereafter | 1,178 | |
Amortizable—Franchise agreements (a) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset amortization expense | 17 | 17 |
Amortizable—License agreements (c) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset amortization expense | 0 | 0 |
Amortizable—Customer relationships (d) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset amortization expense | 6 | 7 |
Amortizable—Pendings and listings (f) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset amortization expense | 1 | 0 |
Amortizable—Other (g) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset amortization expense | $ 2 | $ 2 |
Accrued Expenses And Other Current Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued payroll and related employee costs | $ 85 | $ 138 |
Accrued volume incentives | 29 | 40 |
Accrued commissions | 37 | 31 |
Restructuring accruals | 12 | 14 |
Deferred income | 67 | 69 |
Accrued interest | 31 | 13 |
Contingent consideration for acquisitions | 20 | 24 |
Other | 119 | 106 |
Accrued expenses and other current liabilities | $ 400 | $ 435 |
Short And Long-Term Debt Schedule of Total Indebtedness (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||||||||||||||||||||
Outstanding borrowings, long-term debt | [1] | $ 3,783 | ||||||||||||||||||||
Debt, Long-term and Short-term, Combined Amount | 3,611 | $ 3,507 | ||||||||||||||||||||
Securitization obligations | 172 | 205 | ||||||||||||||||||||
Secured Debt | Term Loan B | ||||||||||||||||||||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||||||||||||||||||||
Outstanding borrowings, long-term debt | 1,069 | [2] | 1,069 | |||||||||||||||||||
Secured Debt | Term Loan A | ||||||||||||||||||||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||||||||||||||||||||
Outstanding borrowings, long-term debt | 406 | [3] | 411 | |||||||||||||||||||
Secured Debt | Term Loan A-1 | ||||||||||||||||||||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||||||||||||||||||||
Outstanding borrowings, long-term debt | [4] | 345 | 347 | |||||||||||||||||||
Senior Notes | 4.50% Senior Notes | ||||||||||||||||||||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||||||||||||||||||||
Outstanding borrowings, long-term debt | 440 | 439 | ||||||||||||||||||||
Senior Notes | 5.25% Senior Notes | ||||||||||||||||||||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||||||||||||||||||||
Outstanding borrowings, long-term debt | 545 | 545 | ||||||||||||||||||||
Senior Notes | 4.875% Senior Notes | ||||||||||||||||||||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||||||||||||||||||||
Outstanding borrowings, long-term debt | 496 | 496 | ||||||||||||||||||||
Line of Credit | Revolving Credit Facility | ||||||||||||||||||||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||||||||||||||||||||
Long-term Line of Credit | 310 | [5],[6] | 200 | |||||||||||||||||||
Securitization obligations | ||||||||||||||||||||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||||||||||||||||||||
Securitization obligations | 172 | 205 | ||||||||||||||||||||
Securitization obligations | Apple Ridge Funding LLC | ||||||||||||||||||||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||||||||||||||||||||
Securitization obligations | 160 | [7],[8] | 192 | |||||||||||||||||||
Securitization obligations | Cartus Financing Limited | ||||||||||||||||||||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||||||||||||||||||||
Securitization obligations | $ 12 | [8],[9] | $ 13 | |||||||||||||||||||
|
Short And Long-Term Debt Schedule of Debt (Details) £ in Millions, $ in Millions |
3 Months Ended | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017
GBP (£)
|
May 03, 2017
USD ($)
|
Mar. 31, 2017
USD ($)
|
Jan. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Jul. 20, 2016
USD ($)
|
Oct. 23, 2015
USD ($)
|
||||||||||||||||||||||
Principal Amount | ||||||||||||||||||||||||||||
Long-Term Debt, Gross | [1] | $ 3,830 | ||||||||||||||||||||||||||
Outstanding borrowings, securitization obligations | 172 | $ 205 | ||||||||||||||||||||||||||
Unamortized Discount and Debt Issuance Costs | ||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | [1] | 47 | ||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, long-term debt | [1] | 3,783 | ||||||||||||||||||||||||||
Outstanding borrowings, securitization obligations | 172 | 205 | ||||||||||||||||||||||||||
Letter of Credit, borrowing capacity | $ 125 | |||||||||||||||||||||||||||
LIBOR | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Description of variable interest rate basis | LIBOR | |||||||||||||||||||||||||||
ABR | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Description of variable interest rate basis | ABR | |||||||||||||||||||||||||||
Term Loan B | LIBOR | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate, Floor | 0.75% | 0.75% | ||||||||||||||||||||||||||
Term Loan B | ABR | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate, Floor | 1.75% | 1.75% | ||||||||||||||||||||||||||
Unsecured Letter of Credit Facility | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Interest Rate | 2.93% | 2.93% | ||||||||||||||||||||||||||
Outstanding letters of credit | $ 126 | |||||||||||||||||||||||||||
Letter of Credit, borrowing capacity | 131 | |||||||||||||||||||||||||||
Secured Debt | Term Loan B | ||||||||||||||||||||||||||||
Principal Amount | ||||||||||||||||||||||||||||
Long-Term Debt, Gross | 1,092 | [2] | 1,094 | $ 1,100 | ||||||||||||||||||||||||
Unamortized Discount and Debt Issuance Costs | ||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | [2] | 23 | ||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, long-term debt | $ 1,069 | [2] | 1,069 | |||||||||||||||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 1.00% | 1.00% | ||||||||||||||||||||||||||
Secured Debt | Term Loan A | ||||||||||||||||||||||||||||
Principal Amount | ||||||||||||||||||||||||||||
Long-Term Debt, Gross | $ 408 | [3] | 413 | $ 435 | ||||||||||||||||||||||||
Unamortized Discount and Debt Issuance Costs | ||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | [3] | 2 | ||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, long-term debt | 406 | [3] | 411 | |||||||||||||||||||||||||
Secured Debt | Term Loan A-1 | ||||||||||||||||||||||||||||
Principal Amount | ||||||||||||||||||||||||||||
Long-Term Debt, Gross | 348 | [4] | 351 | [3] | $ 355 | |||||||||||||||||||||||
Unamortized Discount and Debt Issuance Costs | ||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | [4] | 3 | ||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, long-term debt | [4] | $ 345 | 347 | |||||||||||||||||||||||||
Secured Debt | 2016 | Term Loan A | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 5.00% | 5.00% | ||||||||||||||||||||||||||
Secured Debt | 2017 | Term Loan A | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 5.00% | 5.00% | ||||||||||||||||||||||||||
Secured Debt | 2017 | Term Loan A-1 | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 2.50% | 2.50% | ||||||||||||||||||||||||||
Secured Debt | 2018 | Term Loan A | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 7.50% | 7.50% | ||||||||||||||||||||||||||
Secured Debt | 2018 | Term Loan A-1 | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 2.50% | 2.50% | ||||||||||||||||||||||||||
Secured Debt | 2019 | Term Loan A | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 10.00% | 10.00% | ||||||||||||||||||||||||||
Secured Debt | 2019 | Term Loan A-1 | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 5.00% | 5.00% | ||||||||||||||||||||||||||
Secured Debt | 2020 | Term Loan A | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 12.50% | 12.50% | ||||||||||||||||||||||||||
Secured Debt | 2020 | Term Loan A-1 | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 7.50% | 7.50% | ||||||||||||||||||||||||||
Secured Debt | 2021 | Term Loan A-1 | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 10.00% | 10.00% | ||||||||||||||||||||||||||
Secured Debt | Less than 2.50 to 1.00 | Term Loan A | LIBOR | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||||||||||||||||||||
Secured Debt | Less than 2.50 to 1.00 | Term Loan A | ABR | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||||||||||||||||
Secured Debt | Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 | Term Loan A-1 | LIBOR | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||||||||||||||||||||
Secured Debt | Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 | Term Loan A-1 | ABR | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||||||||||||||||
Senior Notes | 4.50% Senior Notes | ||||||||||||||||||||||||||||
Principal Amount | ||||||||||||||||||||||||||||
Long-Term Debt, Gross | $ 450 | 450 | ||||||||||||||||||||||||||
Unamortized Discount and Debt Issuance Costs | ||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 10 | |||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, long-term debt | $ 440 | 439 | ||||||||||||||||||||||||||
Interest Rate | 4.50% | 4.50% | ||||||||||||||||||||||||||
Senior Notes | 5.25% Senior Notes | ||||||||||||||||||||||||||||
Principal Amount | ||||||||||||||||||||||||||||
Long-Term Debt, Gross | $ 550 | 550 | ||||||||||||||||||||||||||
Unamortized Discount and Debt Issuance Costs | ||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 5 | |||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, long-term debt | $ 545 | 545 | ||||||||||||||||||||||||||
Interest Rate | 5.25% | 5.25% | ||||||||||||||||||||||||||
Senior Notes | 4.875% Senior Notes | ||||||||||||||||||||||||||||
Principal Amount | ||||||||||||||||||||||||||||
Long-Term Debt, Gross | $ 500 | 500 | ||||||||||||||||||||||||||
Unamortized Discount and Debt Issuance Costs | ||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 4 | |||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, long-term debt | $ 496 | 496 | ||||||||||||||||||||||||||
Interest Rate | 4.875% | 4.875% | ||||||||||||||||||||||||||
Line of Credit | Revolving Credit Facility | ||||||||||||||||||||||||||||
Principal Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, short-term debt, line of credit facility | $ 310 | [5],[6] | 200 | |||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, short-term debt, line of credit facility | 310 | [5],[6] | 200 | |||||||||||||||||||||||||
Total capacity, short-term debt, line of credit facility | [5],[6] | 1,050 | $ 1,050 | $ 815 | ||||||||||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 740 | |||||||||||||||||||||||||||
Line of Credit | Less than 2.50 to 1.00 | Revolving Credit Facility | LIBOR | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||||||||||||||||||||
Line of Credit | Less than 2.50 to 1.00 | Revolving Credit Facility | ABR | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||||||||||||||||
Securitization obligations | ||||||||||||||||||||||||||||
Principal Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, securitization obligations | 172 | 205 | ||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, securitization obligations | 172 | 205 | ||||||||||||||||||||||||||
Securitization obligations | Apple Ridge Funding LLC | ||||||||||||||||||||||||||||
Principal Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, securitization obligations | 160 | [7],[8] | 192 | |||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, securitization obligations | 160 | [7],[8] | 192 | |||||||||||||||||||||||||
Total capacity, securitization obligations | [3],[4] | 325 | ||||||||||||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 165 | |||||||||||||||||||||||||||
Securitization obligations | Cartus Financing Limited | ||||||||||||||||||||||||||||
Principal Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, securitization obligations | 12 | [8],[9] | 13 | |||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, securitization obligations | 12 | [8],[9] | $ 13 | |||||||||||||||||||||||||
Total capacity, securitization obligations | [3],[4] | 19 | ||||||||||||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 7 | |||||||||||||||||||||||||||
Securitization obligations | Revolving Credit Facility | Cartus Financing Limited | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Total capacity, securitization obligations | £ | £ 10 | |||||||||||||||||||||||||||
Securitization obligations | Working Capital Facility | Cartus Financing Limited | ||||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Total capacity, securitization obligations | £ | £ 5 | |||||||||||||||||||||||||||
Subsequent Event [Member] | Line of Credit | Revolving Credit Facility | ||||||||||||||||||||||||||||
Principal Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, short-term debt, line of credit facility | [5],[6] | $ 310 | ||||||||||||||||||||||||||
Net Amount | ||||||||||||||||||||||||||||
Outstanding borrowings, short-term debt, line of credit facility | [5],[6] | 310 | ||||||||||||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 740 | |||||||||||||||||||||||||||
|
Short And Long-Term Debt Maturities Table (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||||
Maturities of Long-term Debt | ||||||||||
Remaining 2017 (a) | [1] | $ 341 | ||||||||
2018 | 57 | |||||||||
2019 | 527 | |||||||||
2020 | 357 | |||||||||
2021 | $ 836 | |||||||||
Long-term Debt Maturities, Years Presented | 4 years | |||||||||
Scenario, Forecast | Secured Debt | Term Loan A | ||||||||||
Maturities of Long-term Debt | ||||||||||
Debt Instrument, Periodic Payment, Principal | $ 16 | |||||||||
Scenario, Forecast | Secured Debt | Term Loan A-1 | ||||||||||
Maturities of Long-term Debt | ||||||||||
Debt Instrument, Periodic Payment, Principal | 7 | |||||||||
Scenario, Forecast | Secured Debt | Term Loan B | ||||||||||
Maturities of Long-term Debt | ||||||||||
Debt Instrument, Periodic Payment, Principal | $ 8 | |||||||||
Line of Credit | Revolving Credit Facility | ||||||||||
Maturities of Long-term Debt | ||||||||||
Long-term Line of Credit | $ 310 | [2],[3] | $ 200 | |||||||
|
Short And Long-Term Debt Senior Secured Credit Facility (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Jul. 20, 2016 |
Oct. 23, 2015 |
Mar. 05, 2013 |
|||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-Term Debt, Gross | [1] | $ 3,830 | ||||||||||||||
Letter of Credit, borrowing capacity | $ 125 | |||||||||||||||
Additional Credit Facilities | $ 500 | |||||||||||||||
Scenario, Actual | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior secured leverage ratio | 2.35 | |||||||||||||||
Ratio of Indebtedness to Net Capital Denominator | 1.00 | |||||||||||||||
Maximum | Required Covenant Ratio to Receive Additional Credit Facilities | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior secured leverage ratio | 3.50 | |||||||||||||||
Ratio of Indebtedness to Net Capital Denominator | 1.00 | |||||||||||||||
Maximum | Required Covenant Ratio | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior secured leverage ratio | 4.75 | |||||||||||||||
Ratio of Indebtedness to Net Capital Denominator | 1.00 | |||||||||||||||
LIBOR | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Description of variable interest rate basis | LIBOR | |||||||||||||||
ABR | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Description of variable interest rate basis | ABR | |||||||||||||||
Term Loan B | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate Change | 7500.00% | |||||||||||||||
Term Loan B | LIBOR | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate, Floor | 0.75% | |||||||||||||||
Term Loan B | ABR | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate, Floor | 1.75% | |||||||||||||||
Line of Credit | Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of credit facility borrowing capacity | [2],[3] | $ 1,050 | $ 1,050 | $ 815 | ||||||||||||
Line of Credit | Revolving Credit Facility | LIBOR | Greater than 3.50 to 1.00 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||||||||||
Line of Credit | Revolving Credit Facility | LIBOR | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||||||||
Line of Credit | Revolving Credit Facility | LIBOR | Less than 2.50 to 1.00 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||||||||
Line of Credit | Revolving Credit Facility | ABR | Greater than 3.50 to 1.00 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||||||||
Line of Credit | Revolving Credit Facility | ABR | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||||||||||
Line of Credit | Revolving Credit Facility | ABR | Less than 2.50 to 1.00 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||||
Secured Debt | Term Loan B | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repurchased amount of debt | $ 1,858 | |||||||||||||||
Long-Term Debt, Gross | $ 1,092 | [4] | $ 1,094 | $ 1,100 | ||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 1.00% | |||||||||||||||
|
Short And Long-Term Debt Term Loan A Facility (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
Jul. 20, 2016 |
Oct. 23, 2015 |
Mar. 05, 2013 |
|||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-Term Debt, Gross | [1] | $ 3,830 | |||||||||||
Additional Credit Facilities | $ 500 | ||||||||||||
Required Covenant Ratio to Receive Additional Credit Facilities | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Ratio of Indebtedness to Net Capital | 3.50 | ||||||||||||
Ratio of Indebtedness to Net Capital Denominator | 1.00 | ||||||||||||
Term Loan A | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Maturity Term | 5 years | ||||||||||||
Term Loan A | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-Term Debt, Gross | $ 408 | [2] | $ 413 | $ 435 | |||||||||
Term Loan A | Secured Debt | Greater than 3.50 to 1.00 | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||||||||||
Term Loan A | Secured Debt | Greater than 3.50 to 1.00 | ABR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||||||||||
Term Loan A | Secured Debt | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||||||
Term Loan A | Secured Debt | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ABR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||||||||
Term Loan A | Secured Debt | Less than 2.50 to 1.00 | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||||||||
Term Loan A | Secured Debt | Less than 2.50 to 1.00 | ABR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||||||||
Term Loan A | Secured Debt | 2016 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 5.00% | ||||||||||||
Term Loan A | Secured Debt | 2017 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 5.00% | ||||||||||||
Term Loan A | Secured Debt | 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 7.50% | ||||||||||||
Term Loan A | Secured Debt | 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 10.00% | ||||||||||||
Term Loan A | Secured Debt | 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 12.50% | ||||||||||||
Term Loan A-1 | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-Term Debt, Gross | $ 348 | [3] | $ 351 | [2] | $ 355 | ||||||||
Term Loan A-1 | Secured Debt | Greater than 3.50 to 1.00 | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||||||||||
Term Loan A-1 | Secured Debt | Greater than 3.50 to 1.00 | ABR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||||||||||
Term Loan A-1 | Secured Debt | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||||||
Term Loan A-1 | Secured Debt | Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 | ABR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||||||||
Term Loan A-1 | Secured Debt | Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||||||||
Term Loan A-1 | Secured Debt | Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 | ABR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||||||||
Term Loan A-1 | Secured Debt | Less than 2.00 to 1.00 | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||||||
Term Loan A-1 | Secured Debt | Less than 2.00 to 1.00 | ABR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||||||||
Term Loan A-1 | Secured Debt | 2017 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 2.50% | ||||||||||||
Term Loan A-1 | Secured Debt | 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 2.50% | ||||||||||||
Term Loan A-1 | Secured Debt | 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 5.00% | ||||||||||||
Term Loan A-1 | Secured Debt | 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 7.50% | ||||||||||||
Term Loan A-1 | Secured Debt | 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual percentage of original principal amount for quarterly amortization payments | 10.00% | ||||||||||||
Term Loan A Facility | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Additional Credit Facilities | $ 500 | ||||||||||||
Term Loan A Facility | Secured Debt | Required Covenant Ratio to Receive Additional Credit Facilities | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Ratio of Indebtedness to Net Capital | 350.00% | ||||||||||||
Ratio of Indebtedness to Net Capital Denominator | 100.00% | ||||||||||||
|
Short And Long-Term Debt Unsecured Notes (Details) - Senior Notes |
Mar. 31, 2017 |
---|---|
4.50% Senior Notes | |
Debt Instrument [Line Items] | |
Interest Rate | 4.50% |
5.25% Senior Notes | |
Debt Instrument [Line Items] | |
Interest Rate | 5.25% |
4.875% Senior Notes | |
Debt Instrument [Line Items] | |
Interest Rate | 4.875% |
Short And Long-Term Debt Other Debt Facilities (Details) $ in Millions |
Mar. 31, 2017
USD ($)
|
---|---|
Line of Credit Facility [Line Items] | |
Letter of Credit, borrowing capacity | $ 125 |
Unsecured Letter of Credit Facility | |
Line of Credit Facility [Line Items] | |
Letter of Credit, borrowing capacity | 131 |
Outstanding letters of credit | 126 |
Unsecured Letter of Credit Facility | September 2018 | |
Line of Credit Facility [Line Items] | |
Letter of Credit, borrowing capacity | 65 |
Unsecured Letter of Credit Facility | December 2019 | |
Line of Credit Facility [Line Items] | |
Letter of Credit, borrowing capacity | $ 66 |
Short And Long-Term Debt Securitization Obligations (Details) £ in Millions, $ in Millions |
3 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017
USD ($)
|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2017
GBP (£)
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Securitization obligations | $ 172 | $ 205 | |||||||||||||||
Securitization obligations | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Securitization obligations | 172 | 205 | |||||||||||||||
Relocation receivables and other related relocation assets that collateralize securitization obligations | $ 216 | 238 | |||||||||||||||
Interest expense, debt | $ 1 | $ 1 | |||||||||||||||
Weighted average interest rate, securitization obligations | 2.60% | 3.30% | 3.30% | ||||||||||||||
Securitization obligations | Apple Ridge Funding LLC | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Total capacity, securitization obligations | [1],[2] | $ 325 | |||||||||||||||
Securitization obligations | 160 | [3],[4] | 192 | ||||||||||||||
Securitization obligations | Cartus Financing Limited | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Total capacity, securitization obligations | [1],[2] | 19 | |||||||||||||||
Securitization obligations | $ 12 | [4],[5] | $ 13 | ||||||||||||||
Securitization obligations | Cartus Financing Limited | Revolving Credit Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Total capacity, securitization obligations | £ | £ 10 | ||||||||||||||||
Securitization obligations | Cartus Financing Limited | Working Capital Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Total capacity, securitization obligations | £ | £ 5 | ||||||||||||||||
|
Short And Long-Term Debt Loss on the Early Extinguishment of Debt (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|||
Debt Disclosure [Abstract] | ||||
Loss on the early extinguishment of debt | [1] | $ 4 | $ 0 | |
|
Restructuring Costs Restructuring Costs (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | $ 5 | $ 9 | |||||||
Restructuring Reserve [Roll Forward] | |||||||||
Restructuring costs | 5 | 9 | |||||||
Company Owned Brokerage Services | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | 5 | 2 | |||||||
Restructuring Reserve [Roll Forward] | |||||||||
Restructuring costs | 5 | 2 | |||||||
Relocation Services | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | 2 | ||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Restructuring costs | 2 | ||||||||
Business Optimization Plan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | 5 | 9 | |||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance at December 31, 2016 | 16 | ||||||||
Restructuring costs | 5 | 9 | |||||||
Costs paid or otherwise settled | (8) | ||||||||
Balance at March 31, 2017 | 13 | ||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||
Total amount expected to be incurred | 65 | ||||||||
Amount incurred to date | 54 | ||||||||
Total amount remaining to be incurred | 11 | ||||||||
Business Optimization Plan [Member] | Real Estate Franchise Services | |||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||
Total amount expected to be incurred | 5 | ||||||||
Amount incurred to date | 4 | ||||||||
Total amount remaining to be incurred | 1 | ||||||||
Business Optimization Plan [Member] | Company Owned Brokerage Services | |||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||
Total amount expected to be incurred | 39 | ||||||||
Amount incurred to date | 32 | ||||||||
Total amount remaining to be incurred | 7 | ||||||||
Business Optimization Plan [Member] | Relocation Services | |||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||
Total amount expected to be incurred | 5 | ||||||||
Amount incurred to date | 5 | ||||||||
Total amount remaining to be incurred | 0 | ||||||||
Business Optimization Plan [Member] | Title and Settlement Services | |||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||
Total amount expected to be incurred | 1 | ||||||||
Amount incurred to date | 1 | ||||||||
Total amount remaining to be incurred | 0 | ||||||||
Business Optimization Plan [Member] | Corporate Segment [Member] | |||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||
Total amount expected to be incurred | 15 | ||||||||
Amount incurred to date | 12 | ||||||||
Total amount remaining to be incurred | 3 | ||||||||
Business Optimization Plan [Member] | Personnel Related [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | [1] | 5 | 2 | ||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance at December 31, 2016 | 9 | ||||||||
Restructuring costs | [1] | 5 | 2 | ||||||
Costs paid or otherwise settled | (6) | ||||||||
Balance at March 31, 2017 | 8 | ||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||
Total amount expected to be incurred | 34 | ||||||||
Amount incurred to date | 30 | ||||||||
Total amount remaining to be incurred | 4 | ||||||||
Business Optimization Plan [Member] | Facility Related [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | [2] | 0 | 2 | ||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance at December 31, 2016 | 7 | ||||||||
Restructuring costs | [2] | 0 | 2 | ||||||
Costs paid or otherwise settled | (2) | ||||||||
Balance at March 31, 2017 | 5 | ||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||
Total amount expected to be incurred | 17 | ||||||||
Amount incurred to date | 13 | ||||||||
Total amount remaining to be incurred | 4 | ||||||||
Business Optimization Plan [Member] | Accelerated depreciation related to asset disposals [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | 0 | 0 | |||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance at December 31, 2016 | 0 | ||||||||
Restructuring costs | 0 | 0 | |||||||
Costs paid or otherwise settled | 0 | ||||||||
Balance at March 31, 2017 | 0 | ||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||
Total amount expected to be incurred | 3 | ||||||||
Amount incurred to date | 1 | ||||||||
Total amount remaining to be incurred | 2 | ||||||||
Business Optimization Plan [Member] | Other Restructuring [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring costs | [3] | 0 | 5 | ||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance at December 31, 2016 | 0 | ||||||||
Restructuring costs | [3] | 0 | $ 5 | ||||||
Costs paid or otherwise settled | 0 | ||||||||
Balance at March 31, 2017 | 0 | ||||||||
Restructuring and Related Cost, Expected Cost [Abstract] | |||||||||
Total amount expected to be incurred | 11 | ||||||||
Amount incurred to date | 10 | ||||||||
Total amount remaining to be incurred | $ 1 | ||||||||
|
Stock-Based Compensation Introduction Narrative (Details) |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2016
$ / shares
|
May 31, 2016
shares
|
Mar. 31, 2017
Performance_metrics
shares
|
May 04, 2016
shares
|
|
Number of Additional Shares Authorized | 9,800,000 | |||
Deduction from share reserve | 2.22 | |||
Number of Shares Available for Grant | 3,000,000 | |||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.09 | |||
Performance Share Units | ||||
The first performance metric | Performance_metrics | 1 | |||
Restricted Stock Units (RSUs) | ||||
Award Vesting Period | 3 years | |||
Annual Vesting Percentage | 33.33% | |||
Options | ||||
Award Vesting Period | 4 years | |||
Annual Vesting Percentage | 25.00% | |||
Contractual Term | 10 years | |||
Maximum | ||||
Number of Shares Authorized | 19,400,000 | |||
2017 | Performance Share Units | ||||
Award Vesting Period | 3 years | |||
Number of Performance Metrics | Performance_metrics | 2 | |||
2017 | RTSR | Minimum | Performance Share Units | ||||
Award Vesting Rights Percentage | 0.00% | |||
2017 | RTSR | Maximum | Performance Share Units | ||||
Award Vesting Rights Percentage | 175.00% | |||
2017 | Cumulative Free Cash Flow | Minimum | Performance Share Units | ||||
Award Vesting Rights Percentage | 0.00% | |||
2017 | Cumulative Free Cash Flow | Maximum | Performance Share Units | ||||
Award Vesting Rights Percentage | 200.00% |
Stock-Based Compensation Incentive Equity Awards Activity - Summary of Market Performance Units Valuation Assumptions (Details) - Performance Share Units - RTSR |
3 Months Ended |
---|---|
Mar. 31, 2017
$ / shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average grant date fair value | $ 27.98 |
Weighted average correlation coefficient | 0.53 |
Weighted average risk-free interest rate | 1.50% |
Weighted average dividend yield | 0.00% |
Realogy and comparable companies | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average expected volatility | 29.00% |
XHB | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average expected volatility | 18.40% |
Stock-Based Compensation Incentive Equity Awards Activity - Summary of Restricted Stock Unit and Performance Unit Activity (Details) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2017
USD ($)
$ / shares
shares
| ||||||
Restricted Stock Units (RSUs) | ||||||
Equity Instruments Other than Options, Number of Shares Roll Forward | ||||||
Unvested at January 1, 2017 | shares | 1.4 | |||||
Granted | shares | 0.9 | |||||
Vested (a) | shares | (0.5) | [1] | ||||
Forfeited | shares | 0.0 | |||||
Unvested at March 31, 2017 | shares | 1.8 | |||||
Equity Instruments Other than Options, Weighted Average Grant Date Fair Value Roll Forward | ||||||
Unvested at January 1, 2017 | $ / shares | $ 37.53 | |||||
Granted | $ / shares | 27.69 | |||||
Vested (a) | $ / shares | 40.63 | [1] | ||||
Forfeited | $ / shares | 0.00 | |||||
Unvested at March 31, 2017 | $ / shares | $ 31.41 | |||||
Fair value of awards vested | $ | $ 23 | |||||
Performance Share Units | ||||||
Equity Instruments Other than Options, Number of Shares Roll Forward | ||||||
Unvested at January 1, 2017 | shares | 1.0 | [2] | ||||
Granted | shares | 0.7 | [2] | ||||
Vested (a) | shares | 0.0 | [2] | ||||
Forfeited | shares | 0.0 | [2] | ||||
Unvested at March 31, 2017 | shares | 1.7 | [2] | ||||
Equity Instruments Other than Options, Weighted Average Grant Date Fair Value Roll Forward | ||||||
Unvested at January 1, 2017 | $ / shares | $ 36.71 | |||||
Granted | $ / shares | 27.70 | |||||
Vested (a) | $ / shares | 0.00 | |||||
Forfeited | $ / shares | 0.00 | |||||
Unvested at March 31, 2017 | $ / shares | $ 32.74 | |||||
|
Stock-Based Compensation Incentive Equity Awards Activity - Summary of Stock Options Valuation Assumptions (Details) - Options |
3 Months Ended |
---|---|
Mar. 31, 2017
$ / shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average grant date fair value | $ 8.00 |
Weighted average expected volatility | 30.70% |
Weighted average expected term (years) | 6 years 3 months |
Weighted average risk-free interest rate | 2.10% |
Weighted average dividend yield | 1.31% |
Stock-Based Compensation Incentive Equity Awards Activity - Summary of Option Activity (Details) - Options $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017
USD ($)
$ / shares
shares
| ||||
Options, Number of Shares Roll Forward | ||||
Outstanding at January 1, 2017 | shares | 3.3 | |||
Granted | shares | 0.4 | |||
Exercised | shares | 0.0 | |||
Forfeited/Expired | shares | 0.0 | |||
Outstanding at March 31, 2017 (a) | shares | 3.7 | [1] | ||
Options, Weighted Average Exercise Price Roll Forward | ||||
Outstanding at January 1, 2017 | $ / shares | $ 31.73 | |||
Granted | $ / shares | 27.56 | |||
Exercised | $ / shares | 0.00 | |||
Forfeited/Expired | $ / shares | 0.00 | |||
Outstanding at March 31, 2017 (a) | $ / shares | $ 31.31 | [1] | ||
Intrinsic value of outstanding options | $ | $ 7 | |||
Weighted average remaining contractual life of outstanding options | 6 years 2 months | |||
|
Stock-Based Compensation Stock Based Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Unrecognized compensation cost | $ 69 | |
Remaining weighted average period | 1 year 5 months | |
Stock-based compensation expense | $ 12 | $ 12 |
Transactions With Former Parent Transfer of Cendant Corporate Liabilities and Issuance of Guarantees to Cendant and Affiliates (Details) $ in Millions |
Mar. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Jul. 31, 2006
Independent_Companies
|
---|---|---|---|
Related Party Transactions [Abstract] | |||
Cendant Spin-off Number of New Independent Companies | 4 | ||
Number of New Independent Companies per Cendant Business Unit | 1 | ||
Guaranty Arrangement Percentage of Obligations Assumed by Realogy | 62.50% | ||
Due to former parent | $ | $ 29 | $ 28 |
Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 13 Months Ended | |
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
|
Earnings Per Share [Abstract] | |||
Target Achievement Percentage | 100.00% | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7,300,000 | 6,000,000 | |
Stock Repurchases [Abstract] | |||
Shares Repurchased and Retired During Period, Shares | 2,200,000 | 9,300,000 | |
Shares Repurchased and Retired During Period, Value | $ 60 | $ 259 | |
Weighted Average Market Price of Shares Repurchased and Retired During Period | $ 27.82 | $ 27.93 | |
Common Stock Settlement Date after Period End [Member] | |||
Stock Repurchases [Abstract] | |||
Shares Repurchased and Retired During Period, Shares | 226,352 |
Commitments And Contingencies (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Loss Contingencies [Line Items] | ||
Guaranty Arrangement Percentage of Obligations Assumed by Realogy | 62.50% | |
Guaranty Arrangement Percentage of Obligations Assumed by Wyndham | 37.50% | |
Minimum Aggregate Value of Former Parent Contingent Liabilities for which the Letter of Credit will be Terminated | $ 30,000 | |
Noninterest-bearing deposit liabilities | 571,000 | $ 415,000 |
Maximum | ||
Loss Contingencies [Line Items] | ||
Cash, FDIC insured amount | 250 | |
Synthetic Letter of Credit Facility | ||
Loss Contingencies [Line Items] | ||
Outstanding letters of credit | $ 53,000 | $ 53,000 |
Segment Information - Revenues (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Revenues | [1],[2] | $ 1,203 | $ 1,134 | ||||||
Real Estate Franchise Services | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Revenues | [1],[2] | 170 | 157 | ||||||
Real Estate Franchise Services | Royalties and Marketing Fees [Member] | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Revenues | 61 | 58 | |||||||
Company Owned Brokerage Services | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Revenues | [1],[2] | 897 | 841 | ||||||
Relocation Services | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Revenues | [1],[2] | 77 | 83 | ||||||
Relocation Services | Referral and Relocation Fees [Member] | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Revenues | 8 | 8 | |||||||
Title and Settlement Services | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Revenues | [1],[2] | 120 | 111 | ||||||
Corporate and Other (c) | |||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||
Revenues | [1],[2],[3] | $ (61) | $ (58) | ||||||
|
Segment Information - EBITDA (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings Before Interest, Taxes, Depreciation and Amortization | $ 52 | [1] | $ 55 | [2] | |||||||
Depreciation and amortization | 50 | [1] | 48 | [2] | |||||||
Interest expense, net | 39 | [1] | 73 | [2] | |||||||
Income tax benefit | (9) | [1] | (24) | [2] | |||||||
Net loss attributable to Realogy Holdings and Realogy Group | (28) | [1] | (42) | [2] | |||||||
Restructuring costs | 5 | 9 | |||||||||
Loss on the early extinguishment of debt | [1] | 4 | 0 | ||||||||
Former parent legacy costs, net | 0 | 1 | |||||||||
Real Estate Franchise Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings Before Interest, Taxes, Depreciation and Amortization | 102 | [1] | 92 | [2] | |||||||
Company Owned Brokerage Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings Before Interest, Taxes, Depreciation and Amortization | (26) | [1] | (21) | [2] | |||||||
Restructuring costs | 5 | 2 | |||||||||
Relocation Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings Before Interest, Taxes, Depreciation and Amortization | 1 | [1] | 5 | [2] | |||||||
Restructuring costs | 2 | ||||||||||
Title and Settlement Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings Before Interest, Taxes, Depreciation and Amortization | 2 | [1] | 0 | [2] | |||||||
Corporate and Other (c) | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings Before Interest, Taxes, Depreciation and Amortization | [3] | $ (27) | [1] | (21) | [2] | ||||||
Restructuring costs | $ 5 | ||||||||||
|
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