Equity Equity

3 Months Ended

Mar. 31, 2020

Stockholders' Equity Note Disclosure [Text Block]

EQUITY

Condensed Consolidated Statement of Changes in Equity for Realogy Holdings


	Three Months Ended March 31, 2020
	Common Stock					Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Non- controlling Interests		Total Equity


	Shares	Amount
Balance at December 31, 2019	114.4	$	1	$	4,842	$	(2,695)	$	(56)	$	4	$	2,096
Net loss	—	—		—		(462)		—		—		(462)
Other comprehensive loss	—	—		—		—		(1)		—		(1)
Stock-based compensation	—	—		6		—		—		—		6
Issuance of shares for vesting of equity awards	1.4	—		—		—		—		—		—
Shares withheld for taxes on equity awards	(0.5)	—		(4)		—		—		—		(4)
Dividends	—	—		—		—		—		(1)		(1)
Balance at March 31, 2020	115.3	$	1	$	4,844	$	(3,157)	$	(57)	$	3	$	1,634


	Three Months Ended March 31, 2019
	Common Stock					Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Non- controlling Interests		Total Equity


	Shares	Amount
Balance at December 31, 2018	114.6	$	1	$	4,869	$	(2,507)	$	(52)	$	4	$	2,315
Net loss	—	—		—		(99)		—		—		(99)
Other comprehensive income	—	—		—		—		2		—		2
Repurchase of common stock	(1.2)	—		(20)		—		—		—		(20)
Stock-based compensation	—	—		8		—		—		—		8
Issuance of shares for vesting of equity awards	1.2	—		—		—		—		—		—
Shares withheld for taxes on equity awards	(0.4)	—		(6)		—		—		—		(6)
Dividends declared ($0.09 per share)	—	—		(10)		—		—		(1)		(11)
Balance at March 31, 2019	114.2	$	1	$	4,841	$	(2,606)	$	(50)	$	3	$	2,189

Condensed Consolidated Statement of Changes in Equity for Realogy Group

The Company has not included a statement of changes in equity for Realogy Group as the operating results of Group are consistent with the operating results of Realogy Holdings as all revenue and expenses of Realogy Group flow up to Realogy Holdings and there are no incremental activities at the Realogy Holdings level. The only difference between Realogy Group and Realogy Holdings is that the $1 million in par value of common stock in Realogy Holdings' equity is included in additional paid-in capital in Realogy Group's equity.

Stock Repurchases

The Company may repurchase shares of its common stock under authorizations 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.

The Company's Board of Directors authorized a share repurchase program of up to $275 million, $300 million, $350 million and $175 million of the Company's common stock in February 2016, 2017, 2018 and 2019, respectively.

In the first quarter of 2019, the Company repurchased and retired 1.2 million shares of common stock for $20 million at a weighted average market price of $17.21 per share. The Company has not repurchased any shares under the share repurchase programs since 2019. As of March 31, 2020, $204 million remained available for repurchase under the share repurchase programs. In May 2020, the Company's Board of Directors terminated its outstanding share repurchase programs.

The restrictive covenants in the indenture governing the 9.375% Senior Notes restrict the Company's ability to repurchase shares. See "Note 5. Short and Long-Term Debt—Unsecured Notes."

Stock-Based Compensation

During the first quarter of 2020, the Company granted restricted stock units related to 0.7 million shares with a weighted average grant date fair value of $9.70 and performance stock units related to 0.9 million shares with a weighted average grant date fair value of $9.23. The Company shifted away from the use of options and granted all time-based equity awards in the form of restricted stock units which are subject to ratable vesting over a three-year period. Therefore, the Company did not grant shares of non-qualified stock options during the first quarter of 2020.

Cash-Based Compensation

Instead of issuing stock based compensation to certain employees, the Company issued $18 million of time-vested cash awards which vest annually over a three-year vesting period, $6 million of cash-settled long-term performance awards which are tied to cumulative free cash flow goals that will vest at the end of the three-year performance cycle based on achievement of the performance metric and $3 million of cash settled awards based on the change in Realogy stock price that will vest at the end of the three-year performance cycle.