XML 37 R20.htm IDEA: XBRL DOCUMENT v3.24.3
Basis Of Presentation (Tables)
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Fair Value Hierarchy
The following table summarizes fair value measurements by level at September 30, 2024 for assets and liabilities measured at fair value on a recurring basis:
Level ILevel IILevel IIITotal
Deferred compensation plan assets (included in other non-current assets)$1 $— $— $1 
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities)
— — 2 2 
The following table summarizes fair value measurements by level at December 31, 2023 for assets and liabilities measured at fair value on a recurring basis:
Level ILevel IILevel IIITotal
Deferred compensation plan assets (included in other non-current assets)$1 $— $— $1 
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, 2023$4 
Additions: contingent consideration related to acquisitions completed during the period— 
Reductions: payments of contingent consideration
(2)
Changes in fair value (reflected in general and administrative expenses)— 
Fair value of contingent consideration at September 30, 2024$2 
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, 2024December 31, 2023
DebtPrincipal AmountEstimated
Fair Value (a)		Principal AmountEstimated
Fair Value (a)
Revolving Credit Facility$500 $500 $285 $285 
Term Loan A Facility— — 206 205 
7.00% Senior Secured Second Lien Notes640 593 640 590 
5.75% Senior Notes558 465 576 448 
5.25% Senior Notes449 358 457 336 
0.25% Exchangeable Senior Notes403 351 403 314 
_______________
(a)The fair value of the Company's indebtedness is categorized as Level II.
Investment Income
Three Months Ended September 30, Nine Months Ended September 30,
 2024202320242023
Guaranteed Rate Affinity (1)$(2)$(1)$— $(1)
Title Insurance Underwriter Joint Venture (2)(1)(2)(2)(4)
Other equity method investments (3)(3)(1)(6)(2)
Equity in earnings of unconsolidated entities$(6)$(4)$(8)$(7)
_______________
(1)The Company's 49.9% minority-owned mortgage origination joint venture with Guaranteed Rate, Inc. ("Guaranteed Rate Affinity") at Title Group had an investment balance of $67 million at both September 30, 2024 and December 31, 2023.
(2)The Company's 22% equity interest in the Title Insurance Underwriter Joint Venture at Title Group had an investment balance of $76 million and $74 million at September 30, 2024 and December 31, 2023, respectively.
(3)The Company's various other equity method investments at Title Group and Brokerage Group had a total investment balance of $41 million and $37 million at September 30, 2024 and December 31, 2023, respectively.
Disaggregation of Revenue The Company's revenue is disaggregated by major revenue categories on our Condensed Consolidated Statements of Operations and further disaggregated by business segment as follows:
Three Months Ended September 30,
Franchise Group
Owned Brokerage Group
Title Group
Corporate and OtherTotal
Company
2024202320242023202420232024202320242023
Gross commission income (a)$— $— $1,242 $1,293 $— $— $— $— $1,242 $1,293 
Service revenue (b)57 60 7 6 92 89 — — 156 155 
Franchise fees (c)179 183 — — — — (81)(84)98 99 
Other (d)31 28 9 10 4 4 (5)(5)39 37 
Net revenues$267 $271 $1,258 $1,309 $96 $93 $(86)$(89)$1,535 $1,584 
Nine Months Ended September 30,
Franchise Group
Owned Brokerage Group
Title Group
Corporate and OtherTotal
Company
2024202320242023202420232024202320242023
Gross commission income (a)$— $— $3,525 $3,559 $— $— $— $— $3,525 $3,559 
Service revenue (b)158 177 18 16 258 252 — — 434 445 
Franchise fees (c)500 503 — — — — (231)(233)269 270 
Other (d)74 82 27 29 12 13 (11)(12)102 112 
Net revenues$732 $762 $3,570 $3,604 $270 $265 $(242)$(245)$4,330 $4,386 
______________
(a)Gross commission income at Owned Brokerage Group 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 Title Group and are recognized at a point in time at the closing of a homesale transaction. Service revenue at Franchise Group includes relocation fees, which are recognized as revenue when or as the related performance obligation is satisfied dependent on the type of service performed, and fees related to leads and related services, which are recognized at a point in time at the closing of a homesale transaction or at the completion of the related service.
(c)Franchise fees at 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 from franchisees at Franchise Group 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, 2024Additions during the periodRecognized as Revenue during the periodEnding Balance at September 30, 2024
Franchise Group:
Deferred area development fees (a)$39 $1 $(3)$37 
Deferred brand marketing fund fees (b)19 53 (54)18 
Deferred outsourcing management fees (c)3 31 (31)3 
Other deferred income related to revenue contracts8 23 (23)8 
Total Franchise Group
69 108 (111)66 
Owned Brokerage Group:
Advanced commissions related to development business (d)12 5 (5)12 
Other deferred income related to revenue contracts3 3 (3)3 
Total Owned Brokerage Group
15 8 (8)15 
Total$84 $116 $(119)$81 
_______________
(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 Anywhere’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 Owned Brokerage Group.
(c)The Company earns revenues from outsourcing management fees charged to clients that may cover several of the various relocation services according to the clients' specific needs. Outsourcing management fees are recorded as deferred revenue when billed (usually at the start of the relocation) and are recognized as revenue over the average time period required to complete the transferee's move, or a phase of the move that the fee covers, which is typically 3 to 6 months depending on the move type.
(d)New development closings generally have a development period of between 18 and 24 months from contracted date to closing.