Earnings (Loss) Per Share (Notes)

12 Months Ended

Dec. 31, 2021

EARNINGS (LOSS) PER SHARE

Earnings (loss) per share attributable to Realogy Holdings

Basic earnings (loss) per common share is computed based on net income (loss) attributable to Realogy Holdings stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per common share is computed consistently with the basic computation plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares includes shares the Company could be obligated to issue from its Exchangeable Senior Notes and warrants if dilutive (see Note 9, "Short and Long-Term Debt", for further discussion) and stock-based compensation awards (see Note 13, "Stock-Based Compensation", for further discussion). For purposes of computing diluted earnings (loss) per common share, weighted average common shares do not include potentially dilutive common shares if their effect is anti-dilutive. As such, shares the Company could be obligated to issue from its stock options, warrants and Exchangeable Senior Notes are excluded from the earnings (loss) per share calculation if the exercise or exchangeable price exceeds the average market price of common shares. The following table sets forth the computation of basic and diluted earnings (loss) per share:


	Year Ended December 31,
(in millions, except per share data)	2021		2020		2019
Numerator:
Net income (loss) attributable to Realogy Holdings shareholders	$	343	$	(360)	$	(188)
Denominator:
Weighted average common shares outstanding (denominator for basic earnings (loss) per share calculation)	116.4		115.2		114.2
Dilutive effect of stock-based compensation awards (a) (b)	3.8		—		—
Dilutive effect of Exchangeable Senior Notes and warrants (c)	—
Weighted average common shares outstanding (denominator for diluted earnings (loss) per share calculation)	120.2		115.2		114.2
Earnings (loss) per share attributable to Realogy Holdings shareholders:
Basic earnings (loss) per share	$	2.95	$	(3.13)	$	(1.65)
Diluted earnings (loss) per share	$	2.85	$	(3.13)	$	(1.65)

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(a)The year ended December 31, 2021 excludes 3.7 million shares of common stock issuable for incentive equity awards which includes performance share units based on the achievement of target amounts, that are anti-dilutive to the diluted earnings per share computation.

(b)The Company was in a net loss position for the years ended December 31, 2020 and December 31, 2019, and therefore the impact of incentive equity awards were excluded from the computation of dilutive loss per share as the inclusion of such amounts would be anti-dilutive.

(c)Shares to be provided to the Company from the exchangeable note hedge transactions purchased concurrently with its issuance of Exchangeable Senior Notes in June 2021 are anti-dilutive and therefore they are not treated as a reduction to its dilutive shares.

Shares of Company common stock that have been repurchased pursuant to prior authorizations from the Company's Board of Directors have been retired and are 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.

In the first quarter of 2019, the Company repurchased and retired 1.2 million shares of common stock for $20 million at a weighted average market price of $17.21 per share, but has not repurchased any shares under a share repurchase program since such time.