XML 57 R25.htm IDEA: XBRL DOCUMENT v3.6.0.2
Segment Information (Notes)
 12 Months Ended
Dec. 31, 2016
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,
 
2016
 
2015
 
2014
Real Estate Franchise Services
$
781

 
$
755

 
$
716

Company Owned Real Estate Brokerage Services
4,344

 
4,344

 
4,078

Relocation Services
405

 
415

 
419

Title and Settlement Services
573

 
487

 
398

Corporate and Other (c)
(293
)
 
(295
)
 
(283
)
Total Company
$
5,810

 
$
5,706

 
$
5,328

_______________
(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 $293 million for the year ended December 31, 2016, $295 million for the year ended December 31, 2015 and $283 million for the year ended December 31, 2014. 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 $43 million for the year ended December 31, 2016, $49 million for the year ended December 31, 2015 and $42 million for the year ended December 31, 2014. 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
 
Year Ended December 31,
 
2016 (a)
 
2015 (b)
 
2014 (c)
Real Estate Franchise Services
$
516

 
$
495

 
$
463

Company Owned Real Estate Brokerage Services
137

 
199

 
193

Relocation Services
96

 
105

 
102

Title and Settlement Services
62

 
48

 
36

Corporate and Other (d)
(78
)
 
(121
)
 
(107
)
Total Company
$
733

 
$
726

 
$
687

______________
(a)
Includes $39 million of restructuring charges as follows: $4 million in the Real Estate Franchise Services segment, $22 million in the Company Owned Real Estate Brokerage Services segment, $4 million in the Relocation Services segment, $1 million in Title and Settlement Services segment and $8 million in Corporate and Other, partially offset by a net benefit of $2 million of former parent legacy items for the year ended December 31, 2016.
(b)
Includes $48 million related to the loss on the early extinguishment of debt and restructuring charges of $10 million as follows: $5 million in the Company Owned Real Estate Brokerage Services segment, $1 million in the Relocation Services segment and $4 million in Corporate and Other, partially offset by a net benefit of $15 million of former parent legacy items for the year ended December 31, 2015.
(c)
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.
(d)
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,
 
2016
 
2015
 
2014
Net income attributable to Realogy Holdings and Realogy Group
$
213

 
$
184

 
$
143

Add: Depreciation and amortization
202

 
201

 
190

Interest expense, net
174

 
231

 
267

Income tax expense
144

 
110

 
87

EBITDA
$
733

 
$
726

 
$
687


Depreciation and Amortization
 
Year Ended December 31,
 
2016
 
2015
 
2014
Real Estate Franchise Services
$
77

 
$
77

 
$
75

Company Owned Real Estate Brokerage Services
49

 
46

 
42

Relocation Services
31

 
33

 
43

Title and Settlement Services
23

 
25

 
15

Corporate and Other
22

 
20

 
15

Total Company
$
202

 
$
201

 
$
190


Segment Assets
 
As of December 31
 
2016
 
2015
Real Estate Franchise Services
$
4,477

 
$
4,534

Company Owned Real Estate Brokerage Services
1,249

 
1,140

Relocation Services
1,081

 
1,126

Title and Settlement Services
416

 
382

Corporate and Other
198

 
349

Total Company
$
7,421

 
$
7,531


Capital Expenditures    
 
Year Ended December 31,
 
2016
 
2015
 
2014
Real Estate Franchise Services
$
8

 
$
8

 
$
10

Company Owned Real Estate Brokerage Services
44

 
41

 
33

Relocation Services
12

 
14

 
9

Title and Settlement Services
9

 
8

 
8

Corporate and Other
14

 
13

 
11

Total Company
$
87

 
$
84

 
$
71


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, 2016
 
 
 
 
 
Net revenues
$
5,683

 
$
127

 
$
5,810

Total assets
7,347

 
74

 
7,421

Net property and equipment
265

 
2

 
267

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