XML 63 R25.htm IDEA: XBRL DOCUMENT v3.3.1.900
Segment Information (Notes)
 12 Months Ended
Dec. 31, 2015
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 Consolidated Statements of Operations. The Company’s presentation of EBITDA may not be comparable to similar measures used by other companies.
 
Revenues (a) (b)
 
Year Ended December 31,
 
2015
 
2014
 
2013
Real Estate Franchise Services
$
755

 
$
716

 
$
690

Company Owned Real Estate Brokerage Services
4,344

 
4,078

 
3,990

Relocation Services
415

 
419

 
419

Title and Settlement Services
487

 
398

 
467

Corporate and Other (c)
(295
)
 
(283
)
 
(277
)
Total Company
$
5,706

 
$
5,328

 
$
5,289

_______________
(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 $295 million for the year ended December 31, 2015, $283 million for the year ended December 31, 2014 and $277 million for the year ended December 31, 2013. 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 $49 million for the year ended December 31, 2015, $42 million for the year ended December 31, 2014 and $43 million for the year ended December 31, 2013. 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 (a)
 
Year Ended December 31,
 
2015
 
2014
 
2013
Real Estate Franchise Services
$
495

 
$
463

 
$
448

Company Owned Real Estate Brokerage Services
199

 
193

 
206

Relocation Services
105

 
102

 
104

Title and Settlement Services
48

 
36

 
50

Corporate and Other (b)
(121
)
 
(107
)
 
(155
)
Total Company
$
726

 
$
687

 
$
653

______________
(a)
Includes $48 million related to the loss on the early extinguishment of debt and restructuring charges of $10 million, partially offset by a net benefit of $15 million of former parent legacy items for the year ended December 31, 2015. Includes $47 million related to the loss on the early extinguishment of debt, $10 million of transaction and integration costs related to the ZipRealty acquisition and $2 million related to the Phantom Value Plan, partially offset by a net benefit of $10 million of former parent legacy items and the reversal of a prior year restructuring reserve of $1 million for the year ended December 31, 2014. Includes $68 million loss on the early extinguishment of debt, $47 million related to the Phantom Value Plan and $4 million of restructuring costs, partially offset by a net benefit of $4 million of former parent legacy items for the year ended December 31, 2013.
(b)
Includes the elimination of transactions between segments.
Provided below is a reconciliation of EBITDA to Net income attributable to Realogy Holdings and Realogy Group:
 
Year Ended December 31,
 
2015
 
2014
 
2013
EBITDA
$
726

 
$
687

 
$
653

Less: Depreciation and amortization
201

 
190

 
176

Interest expense, net
231

 
267

 
281

Income tax (benefit) expense
110

 
87

 
(242
)
Net income attributable to Realogy Holdings and Realogy Group
$
184

 
$
143

 
$
438


Depreciation and Amortization
 
Year Ended December 31,
 
2015
 
2014
 
2013
Real Estate Franchise Services
$
77

 
$
75

 
$
75

Company Owned Real Estate Brokerage Services
46

 
42

 
35

Relocation Services
33

 
43

 
44

Title and Settlement Services
25

 
15

 
11

Corporate and Other
20

 
15

 
11

Total Company
$
201

 
$
190

 
$
176


Segment Assets
 
As of December 31
 
 
 
2015
 
2014
 
 
Real Estate Franchise Services
$
4,534

 
$
4,574

 
 
Company Owned Real Estate Brokerage Services
1,140

 
1,002

 
 
Relocation Services
1,126

 
1,155

 
 
Title and Settlement Services
382

 
308

 
 
Corporate and Other
349

 
265

 
 
Total Company
$
7,531

 
$
7,304

 
 

Capital Expenditures    
 
Year Ended December 31,
 
2015
 
2014
 
2013
Real Estate Franchise Services
$
8

 
$
10

 
$
6

Company Owned Real Estate Brokerage Services
41

 
33

 
29

Relocation Services
14

 
9

 
6

Title and Settlement Services
8

 
8

 
11

Corporate and Other
13

 
11

 
10

Total Company
$
84

 
$
71

 
$
62


The geographic segment information provided below is classified based on the geographic location of the Company’s subsidiaries.
 
United
States
 
All Other
Countries
 
Total
On or for the year ended December 31, 2015
 
 
 
 
 
Net revenues
$
5,579

 
$
127

 
$
5,706

Total assets
7,450

 
81

 
7,531

Net property and equipment
252

 
2

 
254

On or for the year ended December 31, 2014
 
 
 
 
 
Net revenues
$
5,201

 
$
127

 
$
5,328

Total assets
7,219

 
85

 
7,304

Net property and equipment
232

 
1

 
233

On or for the year ended December 31, 2013
 
 
 
 
 
Net revenues
$
5,167

 
$
122

 
$
5,289

Total assets
6,998

 
94

 
7,092

Net property and equipment
204

 
1

 
205