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.



	Revenues (a) (b)
	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Real Estate Franchise Services	$	237		$	221		$	407		$	378
Company Owned Real Estate Brokerage Services	1,392			1,268			2,289			2,109
Relocation Services	102			109			179			192
Title and Settlement Services	157			149			277			260
Corporate and Other (c)	(95		)	(85		)	(156		)	(143		)
Total Company	$	1,793		$	1,662		$	2,996		$	2,796

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(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 $95 million and $156 million for the three and six months ended June 30, 2017, respectively, and $85 million and $143 million for the three and six months ended June 30, 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 $12 million and $20 million for the three and six months ended June 30, 2017, respectively, and $13 million and $21 million for the three and six months ended June 30, 2016, respectively. 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 June 30,						Six Months Ended June 30,
	2017 (a)			2016 (b)			2017 (c)			2016 (d)
Real Estate Franchise Services	$	166		$	149		$	268		$	241
Company Owned Real Estate Brokerage Services	77			78			51			57
Relocation Services	27			29			28			34
Title and Settlement Services	26			26			28			26
Corporate and Other (e)	(18		)	(19		)	(45		)	(40		)
Total Company	$	278		$	263		$	330		$	318
Less:
Depreciation and amortization	$	49		$	48		$	99		$	96
Interest expense, net	47			59			86			132
Income tax expense	73			64			64			40
Net income attributable to Realogy Holdings and Realogy Group	$	109		$	92		$	81		$	50

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(a)	Includes a net benefit of $11 million of former parent legacy items and an $8 million expense related to the settlement of the Strader legal matter in Corporate and Other, and $2 million of restructuring charges as follows: $1 million in the Company Owned Real Estate Brokerage Services segment and $1 million in the Real Estate Franchise Services segment for the three months ended June 30, 2017.


(b)	Includes $12 million of restructuring charges as follows: $3 million in the Real Estate Franchise Services segment, $7 million in the Company Owned Real Estate Brokerage Services segment, $1 million in the Relocation Services segment and $1 million in Corporate and Other for the three months ended June 30, 2016.

(c)

Includes a net benefit of $11 million of former parent legacy items, an $8 million expense related to the settlement of the Strader legal matter and $4 million related to the loss on the early extinguishment of debt in Corporate and Other, and $7 million of restructuring charges as follows: $6 million in the Company Owned Real Estate Brokerage Services segment and $1 million in the Real Estate Franchise Services segment for the six months ended June 30, 2017.


(d)	Includes $21 million of restructuring charges as follows: $3 million in the Real Estate Franchise Services segment, $9 million in the Company Owned Real Estate Brokerage Services segment, $3 million in the Relocation Services segment and $6 million in Corporate and Other, and a net cost of $1 million of former parent legacy items in Corporate and Other for the six months ended June 30, 2016.


(e)	Includes the elimination of transactions between segments.