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Condensed Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Revenues [Abstract]        
Net revenues [1],[2] $ 1,629 $ 1,676 $ 4,478 $ 4,725
Expenses        
Commission and other agent-related costs 875 902 2,405 2,556
Operating 388 387 1,158 1,171
Marketing 64 63 202 199
General and administrative 85 80 262 244
Former parent legacy cost, net [3] 1 0 1 0
Restructuring costs, net [4],[5] 11 9 32 45
Impairments [6] 183 0 186 0
Depreciation and amortization 50 49 [7] 149 146 [7]
Interest expense, net 66 41 210 120
(Gain) loss on the early extinguishment of debt [3] (10) 0 (5) 7
Total expenses 1,713 1,531 4,600 4,488
(Loss) income before income taxes, equity in (earnings) losses and noncontrolling interests (84) 145 (122) 237
Income tax (benefit) expense (8) 40 (9) 73
Equity in (earnings) losses of unconsolidated entities (7) 1 (15) 3
Net (loss) income (69) 104 (98) 161
Less: Net income attributable to noncontrolling interests (1) (1) (2) (2)
Net (loss) income attributable to Realogy Holdings and Realogy Group $ (70) $ 103 $ (100) $ 159
(Loss) earnings per share attributable to Realogy Holdings:        
Basic (loss) earnings per share $ (0.61) $ 0.84 $ (0.88) $ 1.26
Diluted (loss) earnings per share $ (0.61) $ 0.83 $ (0.88) $ 1.25
Weighted average common and common equivalent shares of Realogy Holdings outstanding:        
Basic 114.3 122.7 114.2 126.5
Diluted 114.3 123.6 114.2 127.6
Gross commission income        
Revenues [Abstract]        
Net revenues [8] $ 1,201 $ 1,246 $ 3,310 $ 3,536
Service revenue        
Revenues [Abstract]        
Net revenues [9] 269 268 710 728
Franchise fees        
Revenues [Abstract]        
Net revenues [10] 108 109 290 302
Other        
Revenues [Abstract]        
Net revenues [11] $ 51 $ 53 $ 168 $ 159
[1] Revenues for the Relocation Services segment include intercompany referral commissions paid by the Company Owned Real Estate Brokerage Services segment of $11 million and $29 million for the three and nine months ended September 30, 2019, respectively, and $10 million and $30 million for the three and nine months ended September 30, 2018, respectively. Such amounts are recorded as contra-revenues by the Company Owned Real Estate Brokerage Services segment. There are no other material intersegment transactions.
[2] 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 $82 million and $224 million for the three and nine months ended September 30, 2019, respectively, and $83 million and $238 million for the three and nine months ended September 30, 2018, respectively. Such amounts are eliminated through the Corporate and Other line.
[3] Former parent legacy items and (gain) loss on the early extinguishment of debt is recorded in the Corporate and Other segment.
[4] The three and nine months ended September 30, 2019 include $10 million and $28 million, respectively, of expense related to the Facility and Operational Efficiencies Program and $1 million and $4 million, respectively, of expense related to prior restructuring programs. Restructuring charges for three and nine months ended September 30, 2018 relate to prior restructuring programs.
[5] The three months ended September 30, 2019 includes restructuring charges of $1 million in the Real Estate Franchise Services segment, $8 million in the Company Owned Real Estate Brokerage Services segment, $1 million in the Relocation Services segment and $1 million in Corporate and Other.
The three months ended September 30, 2018 includes restructuring charges of $1 million in the Real Estate Franchise Services and $8 million in the Company Owned Real Estate Brokerage Services segment.
The nine months ended September 30, 2019 includes restructuring charges of $1 million in Real Estate Franchise Services segment, $18 million in the Company Owned Real Estate Brokerage Services segment, $5 million in the Relocation Services segment, $2 million in the Title and Settlement Services segment and $6 million in Corporate and Other.
The nine months ended September 30, 2018 includes restructuring charges of $3 million in the Real Estate Franchise Services segment, $29 million in the Company Owned Real Estate Brokerage Services segment, $9 million in the Relocation Services segment, $2 million in the Title and Settlement Services segment and $2 million in Corporate and Other.
[6] Impairments for the three and nine months ended September 30, 2019 includes a goodwill impairment charge of $180 million at the Company Owned Real Estate Brokerage Services segment. In addition, other impairment charges, primarily related to lease asset impairments, of $3 million and $6 million were incurred for the three and nine months ended September 30, 2019, respectively.
[7] Includes the elimination of transactions between segments.
[8] Consists primarily of revenues related to gross commission income at the Company Owned Real Estate Brokerage Services segment which is recognized at a point in time at the closing of a homesale transaction.
[9] Service revenue primarily consists of title and escrow fees at the Title and Settlement Services segment, which are recognized at a point in time at the closing of a homesale transaction, and relocation fees at the Relocation Services segment, which are recognized as revenue when or as the related performance obligation is satisfied, which is dependent on the type of service performed.
[10] Franchise fees at the Real Estate Franchise Services segment primarily include domestic royalties which are recognized at a point in time when the underlying franchisee revenue is earned (upon close of the homesale transaction).
[11] Other revenue is comprised of brand marketing funds received at the Real Estate Franchise Services segment from franchisees, third-party listing fees and other miscellaneous revenues across all of the business segments.