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Guarantor/Non-Guarantor Supplemental Financial Information
12 Months Ended
Dec. 31, 2011
Guarantor/Non-Guarantor Supplemental Financial Information [Abstract]  
Guarantor/Non-Guarantor Supplemental Financial Information
GUARANTOR/NON-GUARANTOR SUPPLEMENTAL FINANCIAL INFORMATION
The following consolidating financial information presents the Consolidating Balance Sheets and Consolidating Statements of Operations and Cash Flows for: (i) Domus Holdings Corp. (“Holdings”); (ii) its direct wholly owned subsidiary Domus Intermediate Holdings Corp. (“Intermediate”); (iii) its indirect wholly owned subsidiary, Realogy Corporation (“Realogy”); (iv) the guarantor subsidiaries of Realogy; (v) the non-guarantor subsidiaries of Realogy; (vi) elimination entries necessary to consolidate Holdings, Intermediate, Realogy and the guarantor and non-guarantor subsidiaries; and (vii) the Company on a consolidated basis. The guarantor subsidiaries of Realogy are comprised of 100% owned entities. Guarantor and non-guarantor subsidiaries are 100% owned by Realogy, either directly or indirectly. All guarantees are full and unconditional and joint and several. Non-guarantor entities are comprised of securitization entities, foreign subsidiaries, unconsolidated entities, insurance underwriter subsidiaries and qualified foreign holding corporations. The guarantor and non-guarantor financial information is prepared using the same basis of accounting as the consolidated financial statements except for the investments in consolidated subsidiaries which are accounted for using the equity method.
Consolidating Statement of Operations
Year Ended December 31, 2011
(in millions)
 
Holdings
 
Intermediate
 
Realogy
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross commission income
$

 
$

 
$

 
$
2,926

 
$

 
$

 
$
2,926

Service revenue

 

 

 
494

 
258

 

 
752

Franchise fees

 

 

 
256

 

 

 
256

Other

 

 

 
152

 
7

 

 
159

Net revenues

 

 

 
3,828

 
265

 

 
4,093

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Commission and other agent-related costs

 

 

 
1,932

 

 

 
1,932

Operating

 

 
1

 
1,072

 
197

 

 
1,270

Marketing

 

 

 
183

 
2

 

 
185

General and administrative

 

 
55

 
181

 
18

 


 
254

Former parent legacy costs (benefit), net

 

 
(15
)
 

 

 

 
(15
)
Restructuring costs

 

 

 
11

 

 

 
11

Merger costs

 

 
1

 

 

 

 
1

Depreciation and amortization

 

 
9

 
176

 
1

 

 
186

Interest expense/(income), net

 

 
655

 
11

 

 

 
666

Loss on the early extinguishment of debt

 

 
36

 

 

 

 
36

Intercompany transactions

 

 
5

 
(4
)
 
(1
)
 

 

Total expenses

 

 
747

 
3,562

 
217

 

 
4,526

Income (loss) before income taxes, equity in earnings and noncontrolling interests

 

 
(747
)
 
266

 
48

 

 
(433
)
Income tax expense (benefit)

 

 
(111
)
 
127

 
16

 

 
32

Equity in (earnings) losses of unconsolidated entities

 

 

 

 
(26
)
 

 
(26
)
Equity in (earnings) losses of subsidiaries
441

 
441

 
(195
)
 
(56
)
 

 
(631
)
 

Net income (loss)
(441
)
 
(441
)
 
(441
)
 
195

 
58

 
631

 
(439
)
Less: Net income attributable to noncontrolling interests

 

 

 

 
(2
)
 

 
(2
)
Net income (loss) attributable to Holdings and Realogy
$
(441
)
 
$
(441
)
 
$
(441
)
 
$
195

 
$
56

 
$
631

 
$
(441
)



Consolidating Statement of Operations
Year Ended December 31, 2010
(in millions)
 
Holdings
 
Intermediate
 
Realogy
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross commission income
$

 
$

 
$

 
$
2,965

 
$

 
$

 
$
2,965

Service revenue

 

 

 
496

 
204

 

 
700

Franchise fees

 

 

 
263

 

 

 
263

Other

 

 

 
157

 
5

 

 
162

Net revenues

 

 

 
3,881

 
209

 

 
4,090

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Commission and other agent-related costs

 

 

 
1,932

 

 

 
1,932

Operating

 

 

 
1,086

 
155

 

 
1,241

Marketing

 

 

 
177

 
2

 

 
179

General and administrative

 

 
51

 
172

 
15

 

 
238

Former parent legacy costs (benefit), net

 

 
(323
)
 

 

 

 
(323
)
Restructuring costs

 

 
3

 
18

 

 

 
21

Merger Costs

 

 
1

 

 

 

 
1

Depreciation and amortization

 

 
8

 
187

 
2

 

 
197

Interest expense/(income), net

 

 
597

 
7

 

 

 
604

Other (income)/expense, net

 

 
(1
)
 
(5
)
 

 

 
(6
)
Intercompany transactions

 

 
5

 
(4
)
 
(1
)
 

 

Total expenses

 

 
341

 
3,570

 
173

 

 
4,084

Income (loss) before income taxes, equity in earnings and noncontrolling interests

 

 
(341
)
 
311

 
36

 

 
6

Income tax expense (benefit)

 

 
(252
)
 
383

 
2

 

 
133

Equity in (earnings) losses of unconsolidated entities

 

 

 

 
(30
)
 

 
(30
)
Equity in (earnings) losses of subsidiaries
99

 
99

 
10

 
(62
)
 

 
(146
)
 

Net income (loss)
(99
)
 
(99
)
 
(99
)
 
(10
)
 
64

 
146

 
(97
)
Less: Net income attributable to noncontrolling interests

 

 

 

 
(2
)
 

 
(2
)
Net income (loss) attributable to Holdings and Realogy
$
(99
)
 
$
(99
)
 
$
(99
)
 
$
(10
)
 
$
62

 
$
146

 
$
(99
)

Consolidating Statement of Operations
Year Ended December 31, 2009
(in millions)
 
Holdings
 
Intermediate
 
Realogy
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross commission income
$

 
$

 
$

 
$
2,884

 
$
2

 
$

 
$
2,886

Service revenue

 

 

 
436

 
185

 

 
621

Franchise fees

 

 

 
273

 

 

 
273

Other

 

 

 
146

 
6

 

 
152

Net revenues

 

 

 
3,739

 
193

 

 
3,932

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Commission and other agent-related costs

 

 

 
1,850

 

 

 
1,850

Operating

 

 

 
1,135

 
128

 

 
1,263

Marketing

 

 

 
159

 
2

 

 
161

General and administrative

 

 
49

 
193

 
8

 

 
250

Former parent legacy costs (benefit), net

 

 
21

 
(55
)
 

 

 
(34
)
Restructuring costs

 

 
7

 
63

 

 

 
70

Merger Costs

 

 
1

 

 

 

 
1

Depreciation and amortization

 

 
8

 
184

 
2

 

 
194

Interest expense/(income), net

 

 
580

 
3

 

 

 
583

Gain on the extinguishment of debt

 

 
(75
)
 

 

 

 
(75
)
Other (income)/expense, net

 

 
2

 

 
1

 

 
3

Intercompany transactions

 

 
6

 
(5
)
 
(1
)
 

 

Total expenses

 

 
599

 
3,527

 
140

 

 
4,266

Income (loss) before income taxes, equity in earnings and noncontrolling interests

 

 
(599
)
 
212

 
53

 

 
(334
)
Income tax expense (benefit)

 

 
(173
)
 
97

 
26

 

 
(50
)
Equity in (earnings) losses of unconsolidated entities

 

 

 

 
(24
)
 

 
(24
)
Equity in (earnings) losses of subsidiaries
262

 
262

 
(164
)
 
(49
)
 

 
(311
)
 

Net income (loss)
(262
)
 
(262
)
 
(262
)
 
164

 
51

 
311

 
(260
)
Less: Net income attributable to noncontrolling interests

 

 

 

 
(2
)
 

 
(2
)
Net income (loss) attributable to Holdings and Realogy
$
(262
)
 
$
(262
)
 
$
(262
)
 
$
164

 
$
49

 
$
311

 
$
(262
)

Consolidating Balance Sheet
December 31, 2011
(in millions)
 
Holdings
 
Intermediate
 
Realogy
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$
2

 
$
80

 
$
67

 
$
(6
)
 
$
143

Trade receivables, net

 

 

 
75

 
45

 

 
120

Relocation receivables

 

 

 
14

 
364

 

 
378

Relocation properties held for sale

 

 

 
11

 

 

 
11

Deferred income taxes

 

 
14

 
53

 
(1
)
 

 
66

Intercompany note receivable

 

 

 
6

 
19

 
(25
)
 

Other current assets

 

 
8

 
64

 
16

 

 
88

Total current assets

 

 
24

 
303

 
510

 
(31
)
 
806

Property and equipment, net

 

 
17

 
145

 
3

 

 
165

Goodwill

 

 

 
2,614

 

 

 
2,614

Trademarks

 

 

 
732

 

 

 
732

Franchise agreements, net

 

 

 
2,842

 

 

 
2,842

Other intangibles, net

 

 

 
439

 

 

 
439

Other non-current assets

 

 
68

 
85

 
59

 

 
212

Investment in subsidiaries
(1,508
)
 
(1,508
)
 
8,207

 
181

 

 
(5,372
)
 

Total assets
$
(1,508
)
 
$
(1,508
)
 
$
8,316

 
$
7,341

 
$
572

 
$
(5,403
)
 
$
7,810

LIABILITIES AND EQUITY (DEFICIT)
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$

 
$

 
$
22

 
$
158

 
$
10

 
$
(6
)
 
$
184

Securitization obligations

 

 

 

 
327

 

 
327

Intercompany note payable

 

 

 
19

 
6

 
(25
)
 

Due to former parent

 

 
80

 

 

 

 
80

Revolving credit facility and current portion of long-term debt

 

 
267

 
50

 
8

 

 
325

Accrued expenses and other current liabilities

 

 
202

 
282

 
36

 

 
520

Intercompany payables

 

 
2,222

 
(2,203
)
 
(19
)
 

 

Total current liabilities

 

 
2,793

 
(1,694
)
 
368

 
(31
)
 
1,436

Long-term debt

 

 
6,825

 

 

 

 
6,825

Deferred income taxes

 

 
(604
)
 
1,494

 

 

 
890

Other non-current liabilities

 

 
83

 
61

 
23

 

 
167

Intercompany liabilities

 

 
727

 
(727
)
 

 

 

Total liabilities

 

 
9,824

 
(866
)
 
391

 
(31
)
 
9,318

Total equity (deficit)
(1,508
)
 
(1,508
)
 
(1,508
)
 
8,207

 
181

 
(5,372
)
 
(1,508
)
Total liabilities and equity (deficit)
$
(1,508
)
 
$
(1,508
)
 
$
8,316

 
$
7,341

 
$
572

 
$
(5,403
)
 
$
7,810


Consolidating Balance Sheet
December 31, 2010
(in millions)
 
Holdings
 
Intermediate
 
Realogy
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$
69

 
$
74

 
$
51

 
$
(2
)
 
$
192

Trade receivables, net

 

 

 
79

 
35

 

 
114

Relocation receivables

 

 

 

 
386

 

 
386

Relocation properties held for sale

 

 

 
21

 

 

 
21

Deferred income taxes

 

 
15

 
63

 
(2
)
 

 
76

Intercompany note receivable

 

 

 
13

 
19

 
(32
)
 

Other current assets

 

 
9

 
69

 
31

 

 
109

Total current assets

 

 
93

 
319

 
520

 
(34
)
 
898

Property and equipment, net

 

 
21

 
162

 
3

 

 
186

Goodwill

 

 

 
2,611

 

 

 
2,611

Trademarks

 

 

 
732

 

 

 
732

Franchise agreements, net

 

 

 
2,909

 

 

 
2,909

Other intangibles, net

 

 

 
478

 

 

 
478

Other non-current assets

 

 
80

 
83

 
52

 

 
215

Investment in subsidiaries
(1,072
)
 
(1,072
)
 
8,014

 
152

 

 
(6,022
)
 

Total assets
$
(1,072
)
 
$
(1,072
)
 
$
8,208

 
$
7,446

 
$
575

 
$
(6,056
)
 
$
8,029

LIABILITIES AND EQUITY (DEFICIT)
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$

 
$

 
$
25

 
$
168

 
$
12

 
$
(2
)
 
$
203

Securitization obligations

 

 

 

 
331

 

 
331

Intercompany note payable

 

 

 
19

 
13

 
(32
)
 

Due to former parent

 

 
104

 

 

 

 
104

Revolving credit facility and current portion of long-term debt

 

 
132

 
55

 
7

 

 
194

Accrued expenses and other current liabilities

 

 
178

 
316

 
31

 

 
525

Intercompany payables

 

 
1,949

 
(1,962
)
 
13

 

 

Total current liabilities

 

 
2,388

 
(1,404
)
 
407

 
(34
)
 
1,357

Long-term debt

 

 
6,698

 

 

 

 
6,698

Deferred income taxes

 

 
(614
)
 
1,497

 

 

 
883

Other non-current liabilities

 

 
86

 
61

 
16

 

 
163

Intercompany liabilities

 

 
722

 
(722
)
 

 

 

Total liabilities

 

 
9,280

 
(568
)
 
423

 
(34
)
 
9,101

Total equity (deficit)
(1,072
)
 
(1,072
)
 
(1,072
)
 
8,014

 
152

 
(6,022
)
 
(1,072
)
Total liabilities and equity (deficit)
$
(1,072
)
 
$
(1,072
)
 
$
8,208

 
$
7,446

 
$
575

 
$
(6,056
)
 
$
8,029



Consolidating Statement of Cash Flows
Year Ended December 31, 2011
(in millions)
 
Holdings
 
Intermediate
 
Realogy
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$

 
$

 
$
(666
)
 
$
414

 
$
74

 
$
(14
)
 
$
(192
)
Investing Activities
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment additions

 

 
(5
)
 
(43
)
 
(1
)
 

 
(49
)
Net assets acquired (net of cash acquired) and acquisition-related payments

 

 

 
(6
)
 

 

 
(6
)
Proceeds from (purchase of) certificates of deposit, net

 

 

 
(3
)
 
8

 

 
5

Change in restricted cash

 

 
1

 

 
5

 

 
6

Intercompany note receivable

 

 

 
7

 

 
(7
)
 

Other, net

 

 

 
(5
)
 

 

 
(5
)
Net cash provided by (used in) investing activities

 

 
(4
)
 
(50
)
 
12

 
(7
)
 
(49
)
Financing Activities
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in revolving credit facilities

 

 
150

 
(5
)
 

 

 
145

Proceeds from the issuance of First and a Half Lien Notes

 

 
700

 

 

 

 
700

Proceeds from term loan extensions

 

 
98

 

 

 

 
98

Repayments of term loan credit facility

 

 
(706
)
 

 

 

 
(706
)
Repayment of prior securitization obligations

 

 

 

 
(299
)
 

 
(299
)
Proceeds from new securitization obligations

 

 

 

 
295

 

 
295

Net change in securitization obligations

 

 

 

 

 

 

Debt issuance costs

 

 
(34
)
 

 
(1
)
 

 
(35
)
Intercompany dividend

 

 

 

 
(10
)
 
10

 

Intercompany note payable

 

 

 

 
(7
)
 
7

 

Intercompany transactions

 

 
392

 
(343
)
 
(49
)
 

 

Other, net

 

 
3

 
(10
)
 
1

 

 
(6
)
Net cash provided by (used in) financing activities

 

 
603

 
(358
)
 
(70
)
 
17

 
192

Effect of changes in exchange rates on cash and cash equivalents

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 
(67
)
 
6

 
16

 
(4
)
 
(49
)
Cash and cash equivalents, beginning of period

 

 
69

 
74

 
51

 
(2
)
 
192

Cash and cash equivalents, end of period
$

 
$

 
$
2

 
$
80

 
$
67

 
$
(6
)
 
$
143



Consolidating Statement of Cash Flows
Year Ended December 31, 2010
(in millions)
 
Holdings
 
Intermediate
 
Realogy
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$

 
$

 
$
(638
)
 
$
504

 
$
24

 
$
(8
)
 
$
(118
)
Investing Activities
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment additions

 

 
(7
)
 
(41
)
 
(1
)
 

 
(49
)
Net assets acquired (net of cash acquired) and acquisition-related payments

 

 

 
(17
)
 

 

 
(17
)
Proceeds from sale of assets

 

 

 
5

 

 

 
5

Purchase of certificates of deposit

 

 

 

 
(9
)
 

 
(9
)
Net cash used in investing activities

 

 
(7
)
 
(53
)
 
(10
)
 

 
(70
)
Financing Activities
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in revolving credit facilities

 

 
100

 
35

 
7

 

 
142

Repayments of term loan credit facility

 

 
(32
)
 

 

 

 
(32
)
Net change in securitization obligations

 

 

 

 
27

 

 
27

Intercompany dividend

 

 

 

 
(11
)
 
11

 

Intercompany transactions

 

 
454

 
(428
)
 
(26
)
 

 

Other, net

 

 
(2
)
 
(8
)
 
(3
)
 

 
(13
)
Net cash provided by (used in) financing activities

 

 
520

 
(401
)
 
(6
)
 
11

 
124

Effect of changes in exchange rates on cash and cash equivalents

 

 

 

 
1

 

 
1

Net increase (decrease) in cash and cash equivalents

 

 
(125
)
 
50

 
9

 
3

 
(63
)
Cash and cash equivalents, beginning of period

 

 
194

 
24

 
42

 
(5
)
 
255

Cash and cash equivalents, end of period
$

 
$

 
$
69

 
$
74

 
$
51

 
$
(2
)
 
$
192












Consolidating Statement of Cash Flows
Year Ended December 31, 2009
(in millions)
 
Holdings
 
Intermediate
 
Realogy
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$

 
$

 
$
(583
)
 
$
309

 
$
650

 
$
(35
)
 
$
341

Investing Activities
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment additions

 

 
(4
)
 
(36
)
 

 

 
(40
)
Net assets acquired (net of cash acquired) and acquisition-related payments

 

 

 
(5
)
 

 

 
(5
)
Change in restricted cash

 

 

 

 
(2
)
 

 
(2
)
Intercompany dividend

 

 

 
63

 

 
(63
)
 

Intercompany note receivable

 

 

 
37

 

 
(37
)
 

Net cash provided by (used in) investing activities

 

 
(4
)
 
59

 
(2
)
 
(100
)
 
(47
)
Financing Activities
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in revolving credit facilities

 

 
(515
)
 

 

 

 
(515
)
Proceeds from issuance of Second Lien Loans

 

 
500

 

 

 

 
500

Repayments of term loan credit facility

 

 
(32
)
 

 

 

 
(32
)
Net change in securitization obligations

 

 

 

 
(410
)
 

 
(410
)
Debt issuance costs

 

 
(11
)
 

 

 

 
(11
)
Intercompany dividend

 

 

 

 
(96
)
 
96

 

Intercompany note payable

 

 

 

 
(37
)
 
37

 

Intercompany transactions

 

 
463

 
(364
)
 
(99
)
 

 

Other, net

 

 
(2
)
 
(6
)
 
(3
)
 

 
(11
)
Net cash provided by (used in) financing activities

 

 
403

 
(370
)
 
(645
)
 
133

 
(479
)
Effect of changes in exchange rates on cash and cash equivalents

 

 

 

 
3

 

 
3

Net increase (decrease) in cash and cash equivalents

 

 
(184
)
 
(2
)
 
6

 
(2
)
 
(182
)
Cash and cash equivalents, beginning of period

 

 
378

 
26

 
36

 
(3
)
 
437

Cash and cash equivalents, end of period
$

 
$

 
$
194

 
$
24

 
$
42

 
$
(5
)
 
$
255