EQUITY

Condensed Consolidated Statement of Changes in Equity for Realogy Holdings



	Three Months Ended September 30, 2018
	Common Stock				Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Non- controlling Interests		Total Equity


	Shares		Amount
Balance at June 30, 2018	124.6		$	1	$	5,073		$	(2,588	)	$	(47	)	$	3	$	2,442
Net income	—		—		—			103			—			1		104
Other comprehensive income	—		—		—			—			—			—		—
Repurchase of common stock	(4.7	)	—		(102		)	—			—			—		(102		)
Exercise of stock options	—		—		—			—			—			—		—
Stock-based compensation	—		—		10			—			—			—		10
Issuance of shares for vesting of equity awards	—		—		—			—			—			—		—
Shares withheld for taxes on equity awards	—		—		—			—			—			—		—
Dividends declared ($0.09 per share)	—		—		(11		)	—			—			—		(11		)
Balance at September 30, 2018	119.9		$	1	$	4,970		$	(2,485	)	$	(47	)	$	4	$	2,443



	Nine Months Ended September 30, 2018
	Common Stock				Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Non- controlling Interests			Total Equity


	Shares		Amount
Balance at December 31, 2017	131.6		$	1	$	5,285		$	(2,631	)	$	(37	)	$	4		$	2,622
Cumulative effect of adoption of new accounting pronouncements	—		—		—			(13		)	(9		)	—			(22		)
Net income	—		—		—			159			—			2			161
Other comprehensive income	—		—		—			—			(1		)	—			(1		)
Repurchase of common stock	(12.5	)	—		(302		)	—			—			—			(302		)
Exercise of stock options	—		—		—			—			—			—			—
Stock-based compensation	—		—		31			—			—			—			31
Issuance of shares for vesting of equity awards	1.2		—		—			—			—			—			—
Shares withheld for taxes on equity awards	(0.4	)	—		(10		)	—			—			—			(10		)
Dividends declared ($0.27 per share)	—		—		(34		)	—			—			(2		)	(36		)
Balance at September 30, 2018	119.9		$	1	$	4,970		$	(2,485	)	$	(47	)	$	4		$	2,443



	Three Months Ended September 30, 2017
	Common Stock				Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Non- controlling Interests		Total Equity


	Shares		Amount
Balance at June 30, 2017	136.8		$	1	$	5,438		$	(2,981	)	$	(38	)	$	3	$	2,423
Net income	—		—		—			95			—			1		96
Other comprehensive income	—		—		—			—			1			—		1
Repurchase of common stock	(1.7	)	—		(59		)	—			—			—		(59		)
Exercise of stock options	0.1		—		4			—			—			—		4
Stock-based compensation	—		—		13			—			—			—		13
Issuance of shares for vesting of equity awards	—		—		—			—			—			—		—
Shares withheld for taxes on equity awards	—		—		(1		)	—			—			—		(1		)
Dividends declared ($0.09 per share)	—		—		(12		)	—			—			—		(12		)
Balance at September 30, 2017	135.2		$	1	$	5,383		$	(2,886	)	$	(37	)	$	4	$	2,465



	Nine Months Ended September 30, 2017
	Common Stock				Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Non- controlling Interests			Total Equity


	Shares		Amount
Balance at December 31, 2016	140.2		$	1	$	5,565		$	(3,062	)	$	(40	)	$	5		$	2,469
Net income	—		—		—			176			—			2			178
Other comprehensive income	—		—		—			—			3			—			3
Repurchase of common stock	(5.9	)	—		(180		)	—			—			—			(180		)
Exercise of stock options	0.3		—		7			—			—			—			7
Stock-based compensation	—		—		38			—			—			—			38
Issuance of shares for vesting of equity awards	1.0		—		—			—			—			—			—
Shares withheld for taxes on equity awards	(0.4	)	—		(10		)	—			—			—			(10		)
Dividends declared ($0.27 per share)	—		—		(37		)	—			—			(3		)	(40		)
Balance at September 30, 2017	135.2		$	1	$	5,383		$	(2,886	)	$	(37	)	$	4		$	2,465

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 Groups' 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 and $350 million of the Company's common stock in February 2016, 2017 and 2018, respectively.

In the third quarter of 2018, the Company repurchased and retired 4.7 million shares of common stock for $102 million at a weighted average market price of $21.37 per share. For the nine months ended September 30, 2018, the Company repurchased and retired 12.5 million shares of common stock for $302 million at a weighted average market price of $24.07 per share. As of September 30, 2018, the Company had repurchased and retired 29 million shares of common stock for an aggregate of $776 million at a total weighted average market price of $26.74 per share. As of September 30, 2018, $149 million remained available for repurchase under the February 2018 share repurchase program.

Stock-Based Compensation

During the first quarter of 2018, the Company granted 0.4 million shares of non-qualified stock options with a weighted exercise price of $25.35 and 1.1 million shares of restricted stock units ("RSUs") with a weighted average grant date fair value of $25.45.

On May 2, 2018, the Company granted RSUs and PSUs aggregating 0.8 million shares, which were approved by the Company's Board of Directors on March 1, 2018 but subject to approval of the 2018 LTIP at the 2018 Annual Meeting of Stockholders held on May 2, 2018, with a weighted average grant date fair value of $25.04.

Dividend Policy

In August 2016, the Company’s Board of Directors approved the initiation of a quarterly cash dividend policy of $0.09 per share on its common stock. The Board declared and paid a quarterly cash dividend of $0.09 per share on the Company’s common stock during the first, second and third quarters of 2018.

The declaration and payment of any future dividend will be subject to the discretion of the Board of Directors and will depend on a variety of factors, including the Company’s financial condition and results of operations, contractual restrictions, including restrictive covenants contained in the Company’s credit agreements, and the indentures governing the Company’s outstanding debt securities, capital requirements and other factors that the Board of Directors deems relevant.

Pursuant to the Company’s policy, dividends payable in cash are treated as a reduction of additional paid-in capital since the Company is currently in an accumulated deficit position.