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Basis Of Presentation (Tables)

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Fair Value Hierarchy

The following table summarizes fair value measurements by level at September 30, 2020 for assets and liabilities measured at fair value on a recurring basis:

			Level I						Level II						Level III						Total
Deferred compensation plan assets (included in other non-current assets)			$	1					$	—					$	—					$	1
Interest rate swaps (included in other non-current liabilities)			—						94						—						94
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities)			—						—						4						4

The following table summarizes fair value measurements by level at December 31, 2019 for assets and liabilities measured at fair value on a recurring basis:

			Level I						Level II						Level III						Total
Deferred compensation plan assets (included in other non-current assets)			$	2					$	—					$	—					$	2
Interest rate swaps (included in other current and non-current liabilities)			—						47						—						47
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities)			—						—						4						4

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents changes in Level III financial liabilities measured at fair value on a recurring basis:

						Level III
Fair value of contingent consideration at December 31, 2019						$	4
Additions: contingent consideration related to acquisitions completed during the period						1
Reductions: payments of contingent consideration						(1)
Changes in fair value (reflected in general and administrative expenses)						—
Fair value of contingent consideration at September 30, 2020						$	4

Fair Value, by Balance Sheet Grouping

The following table summarizes the principal amount of the Company’s indebtedness compared to the estimated fair value, primarily determined by quoted market values, at:

			September 30, 2020												December 31, 2019
Debt			Principal Amount						Estimated Fair Value (a)						Principal Amount						Estimated Fair Value (a)
Senior Secured Credit Facility:
Revolving Credit Facility			$	140					$	140					$	190					$	190
Term Loan B			1,050						1,003						1,058						1,048
Term Loan A Facility:
Term Loan A			694						664						717						705
7.625% Senior Secured Second Lien Notes			550						578						—						—
5.25% Senior Notes			—						—						550						557
4.875% Senior Notes			407						403						407						401
9.375% Senior Notes			550						570						550						572

_______________

(a)The fair value of the Company's indebtedness is categorized as Level II.

Schedule of Derivative Instruments

As of September 30, 2020, the Company had interest rate swaps with an aggregate notional value of $1,000 million to offset the variability in cash flows resulting from the term loan facilities as follows:

Notional Value (in millions)

Commencement Date

Expiration Date

$450

November 2017

November 2022

$400

August 2020

August 2025

$150

November 2022

November 2027

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair value of derivative instruments was as follows:

Not Designated as Hedging Instruments

Balance Sheet Location

September 30, 2020

December 31, 2019

Interest rate swap contracts

Other current and non-current liabilities

94

47

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The effect of derivative instruments on earnings was as follows:

Derivative Instruments Not Designated as Hedging Instruments						Location of Loss Recognized for Derivative Instruments						Loss Recognized on Derivatives
												Three Months Ended September 30,												Nine Months Ended September 30,
												2020						2019						2020						2019
Interest rate swap contracts						Interest expense						$	—					$	12					$	59					$	50

Disaggregation of Revenue

Revenue

Revenue is recognized upon the transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services in accordance with the revenue standard.  The Company's revenue is disaggregated by major revenue categories on our Condensed Consolidated Statements of Operations and further disaggregated by business segment as follows:

			Three Months Ended September 30,
			Realogy Franchise Group												Realogy Brokerage Group												Realogy Title Group												Corporate and Other												Total Company
			2020						2019						2020						2019						2020						2019						2020						2019						2020						2019
Gross commission income (a)			$	—					$	—					$	1,458					$	1,201					$	—					$	—					$	—					$	—					$	1,458					$	1,201
Service revenue (b)			14						24						9						2						207						165						—						—						230						191
Franchise fees (c)			227						186						—						—						—						—						(94)						(78)						133						108
Other (d)			21						30						12						19						6						5						(3)						(4)						36						50
Net revenues			$	262					$	240					$	1,479					$	1,222					$	213					$	170					$	(97)					$	(82)					$	1,857					$	1,550

			Nine Months Ended September 30,
			Realogy Franchise Group												Realogy Brokerage Group												Realogy Title Group												Corporate and Other												Total Company
			2020						2019						2020						2019						2020						2019						2020						2019						2020						2019
Gross commission income (a)			$	—					$	—					$	3,227					$	3,310					$	—					$	—					$	—					$	—					$	3,227					$	3,310
Service revenue (b)			41						66						18						7						494						430						—						—						553						503
Franchise fees (c)			502						505						—						—						—						—						(213)						(215)						289						290
Other (d)			66						108						36						52						16						14						(7)						(9)						111						165
Net revenues			$	609					$	679					$	3,281					$	3,369					$	510					$	444					$	(220)					$	(224)					$	4,180					$	4,268

______________

(a)Consists primarily of revenues related to gross commission income at Realogy Brokerage Group, which is recognized at a point in time at the closing of a homesale transaction.

(b)Service revenue primarily consists of title and escrow fees at Realogy Title Group, which are recognized at a point in time at the closing of a homesale transaction.

(c)Franchise fees at Realogy Franchise Group 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).

(d)Other revenue is comprised of brand marketing funds received at Realogy Franchise Group from franchisees, third-party listing fees in 2019 and other miscellaneous revenues across all of the business segments.

Deferred Revenue by Arrangement

The following table shows the change in the Company's contract liabilities (deferred revenue) related to revenue contracts by reportable segment for the period:

			Beginning Balance at January 1, 2020						Additions during the period						Recognized as Revenue during the period						Ending Balance at September 30, 2020
Realogy Franchise Group:
Deferred area development fees (a)			$	48					$	—					$	(5)					$	43
Deferred brand marketing fund fees (b)			13						45						(50)						8
Other deferred income related to revenue contracts			11						19						(21)						9
Total Realogy Franchise Group			72						64						(76)						60
Realogy Brokerage Group:
Advanced commissions related to development business (c)			9						6						(6)						9
Other deferred income related to revenue contracts			4						1						(2)						3
Total Realogy Brokerage Group			13						7						(8)						12
Total			$	85					$	71					$	(84)					$	72

_______________

(a)The Company collects initial area development fees ("ADF") for international territory transactions, which are recorded as deferred revenue when received and recognized into franchise revenue over the average 25 year life of the related franchise agreement as consideration for the right to access and benefit from Realogy’s brands. In the event an ADF agreement is terminated prior to the end of its term, the unamortized deferred revenue balance will be recognized into revenue immediately upon termination.

(b)Revenues recognized include intercompany marketing fees paid by Realogy Brokerage Group.

(c)New development closings generally have a development period of between 18 and 24 months from contracted date to closing.

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