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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________
FORM 10-Q
þ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 20172020
OR
¨☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File No. 001-35674
REALOGY HOLDINGS CORP.
(Exact name of registrant as specified in its charter)
20-8050955
(I.R.S. Employer Identification Number)
Commission File No. 333-148153
REALOGY GROUP LLC
(Exact name of registrant as specified in its charter)
20-4381990
Commission File No. 001-35674Commission File No. 333-148153
REALOGY HOLDINGS CORP.REALOGY GROUP LLC
(Exact name of registrant as specified in its charter)(Exact name of registrant as specified in its charter)
20-805095520-4381990
(I.R.S. Employer Identification Number)(I.R.S. Employer Identification Number)
Delaware
(State or other jurisdiction of incorporation or organization)
175 Park Avenue
Madison, NJ 07940
(Address of principal executive offices) (Zip Code)
(973) 407-2000
(Registrants' telephone number, including area code)
___________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Realogy Holdings Corp.Common Stock, par value $0.01 per shareRLGYNew York Stock Exchange
Realogy Group LLCNoneNoneNone
Indicate by check mark whether the Registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.  
Realogy Holdings Corp. Yes þ☑  No ¨☐Realogy Group LLC Yes ¨☐  No þ☑
Indicate by check mark whether the Registrants have submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrants were required to submit and post such files). 
Realogy Holdings Corp. Yes þ☑  No ¨☐Realogy Group LLC Yes þ☑  No ¨☐
Indicate by check mark whether the Registrants are large accelerated filers, accelerated filers, non-accelerated filers, smaller reporting companies, or emerging growth companies. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated
filer
Accelerated
filer
Non-accelerated filer
(Do not check if a smaller
Smaller reporting company)company
Smaller reporting
company
Emerging growth company
Realogy Holdings Corp.þ☑¨☐¨☐¨☐¨☐
Realogy Group LLC¨☐¨☐þ☑¨☐¨☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the Registrants are a shell company (as defined in Rule 12b-2 of the Exchange Act).  
Realogy Holdings Corp. Yes ¨☐  No þ☑Realogy Group LLC Yes ¨☐  No þ☑
There were 134,616,566115,456,844 shares of Common Stock, $0.01 par value, of Realogy Holdings Corp. outstanding as of November 1, 2017.3, 2020.



Table of Contents
TABLE OF CONTENTS
Page
1
1
PART IPageFINANCIAL INFORMATION
Item 1.
14
Forward-Looking Statements
PART IFINANCIAL INFORMATION
Item 1.
Financial Statements
4
Report of Independent Registered Public Accounting Firm for Realogy Holdings Corp.
4
5
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 20172020 and 20162019
6
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 20172020 and 20162019
7
8
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 20172020 and 20162019
9
1011
Item 2.
3136
Item 3.
5263
Item 4.
5364
PART IIOTHER INFORMATION
Item 1.
5566
Item 1.1A.
5566
Item 2.5.
5566
Item 5.6.
5667
Item 6.
Exhibits
56
5768
5869






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INTRODUCTORY NOTE
Except as otherwise indicated or unless the context otherwise requires, the terms "we," "us," "our," "our company," "Realogy," "Realogy Holdings" and the "Company" refer to Realogy Holdings Corp., a Delaware corporation, and its consolidated subsidiaries, including Realogy Intermediate Holdings LLC, a Delaware limited liability company ("Realogy Intermediate"), and Realogy Group LLC, a Delaware limited liability company ("Realogy Group"). Neither Realogy Holdings, the indirect parent of Realogy Group, nor Realogy Intermediate, the direct parent company of Realogy Group, conducts any operations other than with respect to its respective direct or indirect ownership of Realogy Group. As a result, the consolidated financial positions, results of operations and cash flows of Realogy Holdings, Realogy Intermediate and Realogy Group are the same.
Realogy Holdings is not a party to the SeniorAmended and Restated Credit Agreement dated as of March 5, 2013, as amended, amended and restated, modified or supplemented from time to time (the "Senior Secured Credit FacilityAgreement") that governs our senior secured credit facility (the "Senior Secured Credit Facility", which includes our "Revolving Credit Facility" and our "Term Loan B Facility") and the Term Loan A FacilityAgreement dated as of October 23, 2015, as amended from time to time (the "Term Loan A Agreement") that governs our senior secured term loan A credit facility (the "Term Loan A Facility") and certain references in this report to our consolidated indebtedness exclude Realogy Holdings with respect to indebtedness under the Senior Secured Credit Facility and Term Loan A Facility. In addition, while Realogy Holdings is a guarantor of Realogy Group's obligations under both its unsecured and secured second lien notes (in each case on an unsecured senior subordinated basis), Realogy Holdings is not subject to the restrictive covenants in the indentures governing such indebtedness.
As used in this Quarterly Report on Form 10-Q, the terms "4.875% Senior Notes" and "9.375% Senior Notes" refer to our 4.875% Senior Notes due 2023 and our 9.375% Senior Notes due 2027, respectively, and are referred to collectively as the "Unsecured Notes." The term "7.625% Senior Secured Second Lien Notes" refer to our 7.625% Senior Secured Second Lien Notes due 2025. The term "5.25% Senior Notes" refers to our 5.25% Senior Notes due 2021 (paid in full in June 2020).
FORWARD-LOOKING STATEMENTS
Forward-lookingThis Quarterly Report on Form 10-Q includes forward-looking statements included in this reportwithin the meaning of Section 27A of the Securities Act of 1933 and our other public filings or other public statements that we make from time to time are based on various facts and derived utilizing numerous important assumptions and are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the information concerning our future financial performance, business strategy, projected plans and objectives,use of words such as well as projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words "believes,"believe," "expects,"expect," "anticipates,"anticipate," "intends,"intend," "projects,"project," "estimates,"estimate," "plans,"plan," and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally"could."
In particular, information appearing under "Management's Discussion and Analysis of Financial Condition and Results of Operations" includes forward-looking statements. Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ materially from those projected in naturethese statements. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, it is based on management's current plans and expectations, expressed in good faith and believed to have a reasonable basis. However, we can give no assurance that any such expectation or belief will result or will be achieved or accomplished.
The following include some, but not historical facts. You should understandall, of the factors that the following important factors could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements:statements. Additionally, many of these risks and uncertainties are currently amplified by and will continue to be amplified by, or in the future may be amplified by, the coronavirus disease (COVID-19) pandemic:
•the extent, duration and severity of the spread of the COVID-19 pandemic and the economic consequences stemming from the COVID-19 crisis (including continued economic contraction and/or the failure of any recovery to be sustained) as well as related risks related tosuch as governmental regulation (including those that preclude or strictly limit showings of properties), changes in patterns of commerce or consumer activities and changes in consumer attitudes and the impact of any of the foregoing on our business, results of operations and liquidity;
•adverse developments or the absence of sustained improvement in general business, economic employment andor political conditions andor the U.S. residential real estate markets, either regionally or nationally, including but not limited to:
◦a lack of improvement or a decline in the number of homesales, stagnant or declining home prices and/or a deterioration in other economic factors that particularly impact the residential real estate market and the business segments in which we operate;
◦increasing mortgage rates and/or constraints on the availability of mortgage financing;
◦insufficient or excessive home inventory levels by market and price point;
◦a decrease in consumer confidence;
◦the impact of recessions, slow economic growth, disruptions in the U.S. government or banking system, disruptions in a major geoeconomic region, or equity or commodity markets and high levels of unemployment in the U.S. and abroad, which may impact all or a portion of the housing markets in which we and our franchisees operate;
◦legislative, tax or regulatory changes (including changes in regulatory interpretations or enforcement practices) that would adversely impact the residential real estate market, including changes relating to the Real Estate Settlement Procedures Act ("RESPA"), potential reforms of Fannie Mae and Freddie Mac, immigration reform, and potential tax code reform (including reforms related to the deductibility of home mortgage interest or state, local and property taxes);
◦a decrease in housing affordability due to higher mortgage rates and increases in average homesale prices;
◦high levels of foreclosure activity;
◦changing attitudes towards home ownership, particularly among potential first-time homebuyers who may delay, or decide not to, purchase a home, as well as the potential impact of decisions to rent versus purchase a home; and

◦a decline in consumer confidence or spending;
◦weak capital, credit and financial markets and/or the instability of financial institutions;


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◦intensifying or continued economic contraction in the U.S. economy, including the impact of recessions, slow economic growth, or a deterioration in other economic factors (including potential consumer, business or governmental defaults or delinquencies due to the COVID-19 crisis or otherwise);
◦the inability or unwillingness
◦continued low or accelerated declines in home inventory levels;
◦continuing high levels of unemployment and/or declining wages or stagnant wage growth in the U.S.;
◦the economic impact of the termination and/or substantial curtailment of, or failure to extend, one or more federal and/or state monetary or fiscal programs meant to assist businesses and individuals navigate COVID-19 related financial challenges;
◦an increase in potential homebuyers with low credit ratings, inability to afford down payments, or other mortgage challenges due to disrupted earnings, including constraints on the availability of mortgage financing;
◦an increase in foreclosure activity;
◦a reduction in the affordability of housing, including in connection with rising home prices;
◦a decline or a lack of improvement in the number of homesales;
◦stagnant or declining home prices;
◦increases in mortgage rates;
◦a lack of improvement or deceleration in the building of new housing for homesales and/or irregular timing or volume of new development closings;
◦the potential negative impact of certain provisions of the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) on (i) home values over time in states with high property, sales and state and local income taxes and (ii) homeownership rates, in particular in light of our market concentration in high-tax states; and/or
◦geopolitical and economic instability, including uncertainty around the 2020 U.S. election;
•risks associated with our substantial indebtedness, interest obligations and the restrictions contained in our debt agreements as well as risks relating to our having to dedicate a significant portion of our cash flows from operations to service our debt and our ability to refinance or repay our indebtedness or incur additional indebtedness;
•the impact of disruption in the residential real estate brokerage industry, and on our results of operations and financial condition, as a result of actions taken by listing aggregators to monetize their concentration and market power, including, among other things, expanding into the brokerage business, diluting the relationship between agents and brokers (and between agents and the consumer), and consolidating and leveraging data;
•the impact of current homeowners to purchase their next home due to various factors, including limited or negative equity in their current home, difficult mortgage underwriting standards, attractive rates on existing mortgages and the lack of available inventory in their market;
increased competition whether through traditional competitors, in the industry for clients and for the affiliation of independent sales agents and franchisees on our results of operations and market share, including competition from:
◦real estate brokerages, including those seeking to disrupt historical real estate brokerage models as well as virtual brokerages or brokerages that operate in a more virtual fashion;
◦other industry participants or competitors with alternative business models (such as flat fee, capped fee or desk fee models) including companies employing technologies intendedseeking to disrupt the traditional brokerage model, as well as eliminatingeliminate brokers or agents from, or minimizingminimize the role they play in, the homesale transaction, such as reducing brokerage commissions, and companiestransaction;
◦other industry participants otherwise competing for a portion of gross commission income; and
competition for more productive sales associates, sales associate teams, and manager talent will continue to impact the ability of our company owned brokerage business and our affiliated franchisees to attract and retain independent sales associates, either individually or as members of a team, and will result in ◦other residential real estate franchisors;
•continuing pressure on the share of gross commission split ratesincome paid by our company owned brokerages and affiliated franchisees to affiliated independent sales agents and independent sales agent teams;
•our affiliatedinability to develop products, technology and programs (including our company-directed affinity programs) that support our strategy to grow the base of independent sales agents at our company owned and franchisee real estate brokerages and the base of our franchisees;
•our geographic and high-end market concentration, particularly with respect to our company owned brokerage operations;including the heightened competition for independent sales agents in those geographies and price points;
•our inability to enter into franchise agreements with new franchisees at current net effective royalty rates, or to realize royalty revenue growth from them;
our inability to renew existing franchise agreements, at current net effectivewithout reducing contractual royalty rates or without increasing the amount and prevalence of non-standard incentives, or to maintain or enhance our value proposition to franchisees;sales incentives;
•the lack of revenue growth or declining profitability of our franchisees and company owned brokerage operations includingor declines in other revenue streams;
•increases in uncollectible accounts receivable and note reserves as a result of the adverse financial effects of the COVID-19 crisis on our franchisees and relocation clients;

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•the potential impact of lower average broker commission rates;
disputesnegative industry or issues with entities that license us their tradenames for usebusiness trends (including further declines in our business or events that negatively impact their brands that could impedemarket capitalization) on our franchisingvaluation of those brands;goodwill and intangibles;
actions by our franchisees that could harm our business or reputation, non-performance of our franchisees, controversies with our franchisees or actions against us by their independent sales associates or employees or third parties with which our franchisees have business relationships;
loss, attrition or changes among our senior executives, other key employees or our inability to recruit top talent;
our inability to achieve or maintain cost savings and other benefits from our restructuring activities;
our inability to realize the benefits from acquisitions due to •the loss of key personnelour largest affinity client or productive agentsmultiple significant relocation clients;
•changes in corporate relocation practices, including in connection with the COVID-19 crisis, resulting in fewer employee relocations, reduced relocation benefits and/or increasing competition in corporate relocation;
•an increase in the experienced claims losses of the acquired companies, as well as the possibility that expected benefits and synergies of the transactions may not be achieved in a timely manner or at all;our title underwriter;
•our failure or alleged failure to comply with laws, regulations and regulatory interpretations and any changes in laws and regulations or stricter interpretations of regulatory requirements,any of the foregoing (whether through private litigation or governmental action), including but not limited to (1) state or federal employment laws or regulations that would require reclassification of independent contractor sales associatesagents to employee status, (2) RESPAprivacy or data security laws and regulations, (3) the Real Estate Settlement Procedures Act ("RESPA") or other federal or state consumer protection or similar laws and (3) privacy or data security(4) antitrust laws and regulations;
•risks related to the impact on our operations and financial results that may be caused by any adverse resolutionfuture meaningful changes in industry operations or structure as a result of litigation, governmental pressures (including pressures for lower brokerage commission rates), the actions of certain competitors, the introduction or regulatory proceedingsgrowth of certain competitive models, changes to the rules of the multiple listing services ("MLS"), or arbitration awards as well as any adverse impact of decisions to voluntarily modify business arrangements or enter into settlement agreements to avoid the risk of protractedotherwise; and costly litigation or other proceedings;
our inability to obtain new technologies and systems, to replace or introduce new technologies and systems as quickly as our competitors and in a cost-effective manner or to achieve the benefits anticipated from new technologies or systems;
•risks and growing costs related to both cybersecurity threats to our data and customer, franchisee, employee and independent sales associateagent data, including but not limited to:
◦the failure or significant disruption of our operations from various causes, including human error, computer malware, ransomware, insecure software, zero day threats, or other events related to our critical information technologies and systems;
◦the increasing level and sophistication of cybersecurity attacks, including distributed denial of service attacks, data exfiltration, fraud or malicious acts on the part of trusted insiders, social engineering, or other unlawful tactics aimed at compromising the systems and data of our officers, employees and franchisee and company owned brokerage sales associates and their customers (including via systems not directly controlled by us); and


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◦the reputational or financial risks associated with a loss of data or material data breach (including unauthorized access to our proprietary business information or personal information of our customers, employees and independent sales associates), the transmission of computer malware, or the diversion of homesale transaction closing funds;
risksas well as those related to our international operations, including compliance with the Foreign Corrupt Practices Actgrowing number of laws, regulations and similar anti-corruption laws as well as risks relatingother requirements related to the master franchisor modelprotection of personal information.
More information on factors that we deploy internationally;
risks associated with our substantial indebtedness and interest obligations and restrictions containedcould cause actual results or events to differ materially from those anticipated is included from time to time in our debt agreements, including risks relating to having to dedicate a significant portion of our cash flows from operations to service our debt;
risks relating to our ability to refinance or repay our indebtedness, incur additional indebtedness or return capital to stockholders;
changes in corporate relocation practices resulting in fewer employee relocations, reduced relocation benefits orreports filed with the loss of one or more significant affinity clients;
an increase in the claims rate of our title underwriterSecurities and an increase in mortgage rates could adversely impact the revenue of our title and settlement services segment;
our inability to securitize certain assets of our relocation business, which would require us to find an alternative source of liquidity that may not be available, or if available, may not be on favorable terms;
risks that could materially adversely impact our equity investment in our mortgage origination joint venture, including increases in mortgage rates, the impact of joint venture operational or liquidity risks, the impact of a transition from our current joint venture to our new joint venture, regulatory changes, litigation, investigations and inquiries or any termination of the venture;
risks relating to the unfavorable impact on homesale activity due to severe weather events or natural disasters;
any remaining resolutions or outcomes with respect to contingent liabilities of our former parent, Cendant CorporationExchange Commission ("Cendant"SEC"), under the Separation and Distribution Agreement and the Tax Sharing Agreement (each as described inincluding our Annual Report on Form 10-K for the year ended December 31, 2016, the "20162019 (the "2019 Form 10-K"), including any adverse impact on our future cash flows; and
new types of taxes or increases in state, local or federal taxes that could diminish profitability or liquidity.
Other factors not identified above, including those describedparticularly under the headingscaptions "Forward-Looking Statements," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" inand our Quarterly Report on Form 10-Q for the 2016 Form 10-K, filed withquarter ended June 30, 2020, particularly under the Securities and Exchange Commission ("SEC"), may also cause actual results to differ materially from those described in our forward-looking statements.caption "Risk Factors". Most of these factors are difficult to anticipate and are generally beyond our control. You should consider these factors in connection with any forward-looking statements that may be made by us and our businesses generally.
All forward-looking statements herein speak only as of the date of this Quarterly Report and are expressly qualified in their entirety by the cautionary statements included in or incorporated by reference into this Quarterly Report. Except for our ongoing obligations to disclose material information under the federal securities laws,as is required by law, we undertake noexpressly disclaim any obligation to publicly release publicly any revisions to any forward-looking statements to reportreflect events or to reportafter the occurrencedate of unanticipated events unless we are required to do so by law.this Quarterly Report. For any forward-looking statement contained in this Quarterly Report, our public filings or other public statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.



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PART I - FINANCIAL INFORMATION
Item 1.    Financial Statements.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMReport of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of Realogy Holdings Corp.:
Results of Review of Interim Financial Statements
We have reviewed the accompanying condensed consolidated balance sheet of Realogy Holdings Corp. and its subsidiaries (the "Company") as of September 30, 2017,2020, and the related condensed consolidated statements of operations and comprehensive income (loss) for the three-month and nine-month periods ended September 30, 20172020 and 20162019, and the condensed consolidated statement of cash flows for the nine-month periods ended September 30, 20172020 and 2016. These2019, including the related notes (collectively referred to as the “interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements arefor them to be in conformity with accounting principles generally accepted in the responsibilityUnited States of the Company's management.America.

We conducted our reviewhave previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)., the consolidated balance sheet of the Company as of December 31, 2019, and the related consolidated statements of operations, comprehensive (loss) income, equity and of cash flows for the year then ended (not presented herein), and in our report dated February 25, 2020, which included a paragraph describing a change in the manner of accounting for leases in the 2019 financial statements, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheetinformation as of December 31, 2019, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.
Basis for Review Results
These interim financial statements are the responsibility of the Company’s management.We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States),PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.



/s/ PricewaterhouseCoopers LLP
Florham Park, New Jersey
November 5, 2020

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Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholder of Realogy Group LLC
Results of Review of Interim Financial Statements
We have reviewed the accompanying condensed consolidated balance sheet of Realogy Group LLC and its subsidiaries (the "Company") as of September 30, 2020, and the related condensed consolidated statements of operations and comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2020 and 2019, and of cash flows for the nine-month periods ended September 30, 2020 and 2019, including the related notes (collectively referred to as the "interim financial statements"). Based on our review,reviews, we are not aware of any material modifications that should be made to the accompanying condensed consolidated interim financial informationstatements for itthem to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), and in accordance with auditing standards generally accepted in the United States of America, the consolidated balance sheet of the Company as of December 31, 2016,2019, and the related consolidated statements of operations, comprehensive (loss) income equity, and of cash flows for the year then ended (not presented herein), and in our report dated February 24, 2017,25, 2020, which included a paragraph describing a change in the manner of accounting for leases in the 2019 financial statements, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet information as of December 31, 2016,2019, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

/s/ PricewaterhouseCoopers LLP
Florham Park, NJ
November 3, 2017





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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholder of Realogy Group LLC:
We have reviewed the accompanying condensed consolidated balance sheet of Realogy Group LLC and its subsidiaries as of September 30, 2017, and the related condensed consolidated statements of operations and comprehensive income for the three-month and nine-month periods ended September 30, 2017 and 2016 and the condensed consolidated statement of cash flows for the nine-month periods ended September 30, 2017 and 2016. These interim financial statements are the responsibility of the Company's management.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our reviewreviews in accordance with the standards of the Public Company Accounting Oversight Board (United States)PCAOB and in accordance with auditing standards generally accepted in the United States of America applicable to reviews of interim financial information. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States)PCAOB or in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.


Based on our review, we are not aware of any material modifications that should be made to the accompanying condensed consolidated interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) and in accordance with auditing standards generally accepted in the United States of America, the consolidated balance sheet as of December 31, 2016, and the related consolidated statements of operations, comprehensive income, equity, and of cash flows for the year then ended (not presented herein), and in our report dated February 24, 2017, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet information as of December 31, 2016, is fairly stated in all material respects in relation to the consolidated balance sheet from which it has been derived.



/s/ PricewaterhouseCoopers LLP
Florham Park, NJNew Jersey
November 3, 20175, 2020





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REALOGY HOLDINGS CORP. AND REALOGY GROUP LLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
Three Months EndedNine Months Ended
 September 30,September 30,
 2020201920202019
Revenues
Gross commission income$1,458 $1,201 $3,227 $3,310 
Service revenue230 191 553 503 
Franchise fees133 108 289 290 
Other36 50 111 165 
Net revenues1,857 1,550 4,180 4,268 
Expenses
Commission and other agent-related costs1,105 875 2,420 2,405 
Operating342 343 953 1,016 
Marketing56 63 155 200 
General and administrative97 69 230 217 
Former parent legacy cost, net1 1 1 1 
Restructuring costs, net13 11 38 29 
Impairments6 240 460 243 
Depreciation and amortization43 42 134 126 
Interest expense, net48 66 208 209 
(Gain) loss on the early extinguishment of debt0 (10)8 (5)
Total expenses1,711 1,700 4,607 4,441 
Income (loss) from continuing operations before income taxes, equity in earnings and noncontrolling interests146 (150)(427)(173)
Income tax expense (benefit) from continuing operations54 (23)(67)(22)
Equity in earnings of unconsolidated entities(53)(7)(98)(15)
Net income (loss) from continuing operations145 (120)(262)(136)
(Loss) income from discontinued operations, net of tax(3)8 (17)(5)
Estimated loss on the sale of discontinued operations, net of tax(43)0 (97)0 
Net (loss) income from discontinued operations(46)8 (114)(5)
Net income (loss)99 (112)(376)(141)
Less: Net income attributable to noncontrolling interests(1)(1)(2)(2)
Net income (loss) attributable to Realogy Holdings and Realogy Group$98 $(113)$(378)$(143)
Basic earnings (loss) per share attributable to Realogy Holdings shareholders:
Basic earnings (loss) per share from continuing operations$1.25 $(1.06)$(2.29)$(1.21)
Basic (loss) earnings per share from discontinued operations(0.40)0.07 (0.99)(0.04)
Basic earnings (loss) per share$0.85 $(0.99)$(3.28)$(1.25)
Diluted earnings (loss) per share attributable to Realogy Holdings shareholders:
Diluted earnings (loss) per share from continuing operations$1.23 $(1.06)$(2.29)$(1.21)
Diluted (loss) earnings per share from discontinued operations(0.39)0.07 (0.99)(0.04)
Diluted earnings (loss) per share$0.84 $(0.99)$(3.28)$(1.25)
Weighted average common and common equivalent shares of Realogy Holdings outstanding:
Basic115.4 114.3 115.2 114.2 
Diluted116.7 114.3 115.2 114.2 
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2017 2016 2017 2016
Revenues       
Gross commission income$1,250
 $1,211
 $3,505
 $3,288
Service revenue261
 273
 710
 715
Franchise fees111
 107
 296
 280
Other52
 53
 159
 157
Net revenues1,674
 1,644
 4,670
 4,440
Expenses       
Commission and other agent-related costs887
 834
 2,462
 2,256
Operating394
 400
 1,162
 1,158
Marketing63
 58
 195
 181
General and administrative82
 78
 269
 234
Former parent legacy cost (benefit), net1
 —
 (10) 1
Restructuring costs2
 9
 9
 30
Depreciation and amortization50
 53
 149
 149
Interest expense, net41
 37
 127
 169
Loss on the early extinguishment of debt1
 —
 5
 —
Other income, net—
 (1) —
 (1)
Total expenses1,521
 1,468
 4,368
 4,177
Income before income taxes, equity in earnings and noncontrolling interests153
 176
 302
 263
Income tax expense67
 74
 131
 114
Equity in earnings of unconsolidated entities(10) (5) (7) (10)
Net income96
 107
 178
 159
Less: Net income attributable to noncontrolling interests(1) (1) (2) (3)
Net income attributable to Realogy Holdings and Realogy Group$95
 $106
 $176
 $156
        
Earnings per share attributable to Realogy Holdings:       
Basic earnings per share$0.70
 $0.74
 $1.28
 $1.07
Diluted earnings per share$0.69
 $0.73
 $1.26
 $1.06
Weighted average common and common equivalent shares of Realogy Holdings outstanding:
Basic136.1
 144.0
 137.8
 145.4
Diluted138.1
 145.1
 139.4
 146.6
        
Cash dividends declared per share (beginning in August 2016)$0.09
 $0.09
 $0.27
 $0.09




See Notes to Condensed Consolidated Financial Statements.
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REALOGY HOLDINGS CORP. AND REALOGY GROUP LLC
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In millions)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
2020201920202019
Net income (loss)$99 $(112)$(376)$(141)
Currency translation adjustment0 (1)(1)(1)
Defined benefit pension plan—amortization of actuarial loss to periodic pension cost1 1 2 2 
Other comprehensive income, before tax1 0 1 1 
Income tax expense related to items of other comprehensive income amounts0 1 0 1 
Other comprehensive income (loss), net of tax1 (1)1 0 
Comprehensive income (loss)100 (113)(375)(141)
Less: comprehensive income attributable to noncontrolling interests(1)(1)(2)(2)
Comprehensive income (loss) attributable to Realogy Holdings and Realogy Group$99 $(114)$(377)$(143)
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2017 2016 2017 2016
Net income$96
 $107
 $178
 $159
Currency translation adjustment1
 —
 3
 (3)
Defined benefit pension plan - amortization of actuarial loss to periodic pension cost1
 —
 1
 1
Other comprehensive income (loss), before tax2
 —
 4
 (2)
Income tax expense related to items of other comprehensive income1
 1
 1
 1
Other comprehensive income (loss), net of tax1
 (1) 3
 (3)
Comprehensive income97
 106
 181
 156
Less: comprehensive income attributable to noncontrolling interests(1) (1) (2) (3)
Comprehensive income attributable to Realogy Holdings and Realogy Group$96
 $105
 $179
 $153






See Notes to Condensed Consolidated Financial Statements.
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REALOGY HOLDINGS CORP. AND REALOGY GROUP LLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
 September 30,
2020		December 31,
2019
 
ASSETS
Current assets:
Cash, cash equivalents and restricted cash$380 $235 
Trade receivables (net of allowance for doubtful accounts of $13 and $11)109 79 
Other current assets149 147 
Current assets - held for sale583 750 
Total current assets1,221 1,211 
Property and equipment, net288 308 
Operating lease assets, net477 515 
Goodwill2,887 3,300 
Trademarks643 673 
Franchise agreements, net1,109 1,160 
Other intangibles, net69 72 
Other non-current assets354 304 
Total assets$7,048 $7,543 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$87 $84 
Current portion of long-term debt198 234 
Current portion of operating lease liabilities125 122 
Accrued expenses and other current liabilities439 350 
Current liabilities - held for sale297 356 
Total current liabilities1,146 1,146 
Long-term debt3,159 3,211 
Long-term operating lease liabilities441 467 
Deferred income taxes279 390 
Other non-current liabilities290 233 
Total liabilities5,315 5,447 
Commitments and contingencies (Note 9)
Equity:
Realogy Holdings preferred stock: $0.01 par value; 50,000,000 shares authorized, NaN issued and outstanding at September 30, 2020 and December 31, 20190 0 
Realogy Holdings common stock: $0.01 par value; 400,000,000 shares authorized, 115,440,569 shares issued and outstanding at September 30, 2020 and 114,355,519 shares issued and outstanding at December 31, 20191 1 
Additional paid-in capital4,856 4,842 
Accumulated deficit(3,073)(2,695)
Accumulated other comprehensive loss(55)(56)
Total stockholders' equity1,729 2,092 
Noncontrolling interests4 4 
Total equity1,733 2,096 
Total liabilities and equity$7,048 $7,543 
 September 30,
2017		 December 31,
2016
  
ASSETS   
Current assets:   
Cash and cash equivalents$348
 $274
Trade receivables (net of allowance for doubtful accounts of $10 and $13)166
 152
Relocation receivables275
 244
Other current assets153
 148
Total current assets942
 818
Property and equipment, net272
 267
Goodwill3,704
 3,690
Trademarks748
 748
Franchise agreements, net1,311
 1,361
Other intangibles, net291
 313
Other non-current assets253
 224
Total assets$7,521
 $7,421
LIABILITIES AND EQUITY   
Current liabilities:   
Accounts payable$152
 $140
Securitization obligations234
 205
Due to former parent18
 28
Current portion of long-term debt242
 242
Accrued expenses and other current liabilities442
 435
Total current liabilities1,088
 1,050
Long-term debt3,234
 3,265
Deferred income taxes518
 389
Other non-current liabilities216
 248
Total liabilities5,056
 4,952
Commitments and contingencies (Note 9)   
Equity:   
Realogy Holdings preferred stock: $.01 par value; 50,000,000 shares authorized, none issued and outstanding at September 30, 2017 and December 31, 2016—
 —
Realogy Holdings common stock: $.01 par value; 400,000,000 shares authorized, 135,180,292 shares issued and outstanding at September 30, 2017 and 140,227,692 shares issued and outstanding at December 31, 20161
 1
Additional paid-in capital5,383
 5,565
Accumulated deficit(2,886) (3,062)
Accumulated other comprehensive loss(37) (40)
Total stockholders' equity2,461
 2,464
Noncontrolling interests4
 5
Total equity2,465
 2,469
Total liabilities and equity$7,521
 $7,421




See Notes to Condensed Consolidated Financial Statements.
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REALOGY HOLDINGS CORP. AND REALOGY GROUP LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
 Nine Months Ended
September 30,
 2017 2016
Operating Activities   
Net income$178
 $159
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization149
 149
Deferred income taxes129
 98
Amortization of deferred financing costs and discount12
 12
Noncash portion of loss on early extinguishment of debt4
 —
Equity in earnings of unconsolidated entities(7) (10)
Stock-based compensation38
 39
Mark-to-market adjustments on derivatives6
 39
Other adjustments to net income(2) (4)
Net change in assets and liabilities, excluding the impact of acquisitions and dispositions:   
Trade receivables(13) (29)
Relocation receivables(30) (14)
Other assets(33) (20)
Accounts payable, accrued expenses and other liabilities10
 (5)
Due to former parent(10) 1
Dividends received from unconsolidated entities24
 5
Other, net(11) (9)
Net cash provided by operating activities444
 411
Investing Activities   
Property and equipment additions(69) (61)
Payments for acquisitions, net of cash acquired(13) (95)
Investment in unconsolidated entities(34) —
Change in restricted cash3
 (2)
Other, net17
 (5)
Net cash used in investing activities(96) (163)
Financing Activities   
Net change in revolving credit facility(10) (45)
Proceeds from issuance of Term Loan A-1—
 355
Repayment of amended Term Loan B facility—
 (758)
Amortization payments on term loan facilities(31) (31)
Proceeds from issuance of Senior Notes—
 750
Redemption of Senior Notes—
 (500)
Net change in securitization obligations29
 9
Debt issuance costs(6) (15)
Repurchase of common stock(180) (134)
Dividends paid on common stock(37) (13)
Proceeds from exercise of stock options7
 1
Taxes paid related to net share settlement for stock-based compensation(11) (6)
Payments of contingent consideration related to acquisitions(18) (23)
Other, net(19) (28)
Net cash used in financing activities(276) (438)
Effect of changes in exchange rates on cash and cash equivalents2
 (1)
Net increase (decrease) in cash and cash equivalents74
 (191)
Cash and cash equivalents, beginning of period274
 415
Cash and cash equivalents, end of period$348
 $224
Supplemental Disclosure of Cash Flow Information   
Interest payments (including securitization interest of $5 for both periods presented)$111
 $117
Income tax payments, net10
 13

 Nine Months Ended
September 30,
 20202019
Operating Activities
Net loss$(376)$(141)
Net loss from discontinued operations114 5 
Net loss from continuing operations(262)(136)
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities:
Depreciation and amortization134 126 
Deferred income taxes(70)(29)
Impairments460 243 
Amortization of deferred financing costs and debt discount8 7 
Loss (gain) on the early extinguishment of debt8 (5)
Equity in earnings of unconsolidated entities(98)(15)
Stock-based compensation18 22 
Mark-to-market adjustments on derivatives59 50 
Other adjustments to net loss0 (3)
Net change in assets and liabilities, excluding the impact of acquisitions and dispositions:
Trade receivables(30)(17)
Other assets13 (6)
Accounts payable, accrued expenses and other liabilities115 14 
Dividends received from unconsolidated entities59 2 
Other, net(16)(3)
Net cash provided by operating activities from continuing operations398 250 
Net cash provided by (used in) operating activities from discontinued operations20 (20)
Net cash provided by operating activities418 230 
Investing Activities
Property and equipment additions(60)(71)
Payments for acquisitions, net of cash acquired(1)(1)
Investment in unconsolidated entities(2)(10)
Other, net(12)3 
Net cash used in investing activities from continuing operations(75)(79)
Net cash used in investing activities from discontinued operations(9)(7)
Net cash used in investing activities$(84)$(86)

See Notes to Condensed Consolidated Financial Statements.
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 Nine Months Ended
September 30,
 20202019
Financing Activities
Net change in Revolving Credit Facility$(50)$(5)
Proceeds from issuance of Senior Secured Second Lien Notes550 0 
Proceeds from issuance of Senior Notes0 550 
Redemption and repurchases of Senior Notes(550)(533)
Amortization payments on term loan facilities(31)(22)
Debt issuance costs(14)(9)
Cash paid for fees associated with early extinguishment of debt(7)(5)
Repurchase of common stock0 (20)
Dividends paid on common stock0 (31)
Taxes paid related to net share settlement for stock-based compensation(5)(6)
Payments of contingent consideration related to acquisitions(1)(3)
Other, net(22)(18)
Net cash used in financing activities from continuing operations(130)(102)
Net cash used in financing activities from discontinued operations(73)(2)
Net cash used in financing activities(203)(104)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash0 0 
Net increase in cash, cash equivalents and restricted cash131 40 
Cash, cash equivalents and restricted cash, beginning of period266 238 
Cash, cash equivalents and restricted cash, end of period397 278 
Less cash, cash equivalents and restricted cash of discontinued operations, end of period17 25 
Cash, cash equivalents and restricted cash of continuing operations, end of period$380 $253 
Supplemental Disclosure of Cash Flow Information
Interest payments for continuing operations$128 $124 
Income tax (refunds) payments for continuing operations, net(9)7 

See Notes to Condensed Consolidated Financial Statements.
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REALOGY HOLDINGS CORP. AND REALOGY GROUP LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise noted, all amounts are in millions)
(Unaudited)
1.BASIS OF PRESENTATION
1.    BASIS OF PRESENTATION
Realogy Holdings Corp. ("Realogy Holdings", "Realogy" or the "Company") is a holding company for its consolidated subsidiaries including Realogy Intermediate Holdings LLC ("Realogy Intermediate") and Realogy Group LLC ("Realogy Group") and its consolidated subsidiaries. Realogy, through its subsidiaries, is a global provider of residential real estate services. Neither Realogy Holdings, the indirect parent of Realogy Group, nor Realogy Intermediate, the direct parent company of Realogy Group, conducts any operations other than with respect to its respective direct or indirect ownership of Realogy Group. As a result, the consolidated financial positions, results of operations, comprehensive income and cash flows of Realogy Holdings, Realogy Intermediate and Realogy Group are the same.
The accompanying Condensed Consolidated Financial Statements include the financial statements of Realogy Holdings and Realogy Group. Realogy Holdings' only asset is its investment in the common stock of Realogy Intermediate, and Realogy Intermediate's only asset is its investment in Realogy Group. Realogy Holdings' only obligations are its guarantees of certain borrowings and certain franchise obligations of Realogy Group. All expenses incurred by Realogy Holdings and Realogy Intermediate are for the benefit of Realogy Group and have been reflected in Realogy Group's Condensed Consolidated Financial Statements.
The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America and with Article 10 of Regulation S-X. Interim results may not be indicative of full year performance because of seasonal and short-term variations. The Company has eliminated all material intercompany transactions and balances between entities consolidated in these financial statements. In presenting the Condensed Consolidated Financial Statements, management makes estimates and assumptions that affect the amounts reported and the related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ materially from those estimates.
In management's opinion, the accompanying unaudited Condensed Consolidated Financial Statements reflect all normal and recurring adjustments necessary for a fair statement of Realogy Holdings and Realogy Group's financial position as of September 30, 20172020 and the results of operations and comprehensive income (loss) for the three and nine months ended September 30, 20172020 and 20162019 and cash flows for the nine months ended September 30, 20172020 and 2016.2019. The Consolidated Balance Sheet at December 31, 20162019 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2016.2019.
COVID-19
A strong recovery in the residential real estate market began late in the second quarter of 2020, following a period of sharp decline in homesale transactions starting in the final weeks of the first quarter of 2020. The Company attributes the recovery to date to a favorable mortgage rate environment, low inventory contributing to higher average homesale price, and increased demand as the quarantine restrictions in place in many states have begun to be relaxed. In addition, the Company observed growing strength in certain trends that it believes are largely driven by behavioral changes related to the COVID-19 crisis, including home buyer preferences for certain geographies, including suburban locations and attractive tax and weather destinations and second home purchases.
In mid-March 2020, the Company began taking a series of proactive cost-saving measures in reaction to the evolving COVID-19 crisis, including salary reductions, furloughs and reductions in marketing and other spending which resulted in substantial cost-savings in the second quarter of 2020 to partially offset the decline in revenues. While these temporary cost-saving measures resulted in cost savings in the second and third quarters of 2020, almost all of such measures were reversed during the third quarter of 2020 based upon the significant improvement in the volume of homesale transactions and ongoing business needs.

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There remain significant uncertainties regarding the COVID-19 crisis, including the severity, duration and extent of the pandemic. The Company's business could be negatively impacted if the crisis, including adverse economic consequences of the crisis, worsen, if directives and mandates requiring businesses to again curtail or cease normal operations are reinstated, if mortgage rates rise, or if housing inventory constraints, across geographies and price point, limit homesale transaction growth. These negative impacts may be more pronounced in future periods and could have a material adverse effect on the Company's results of operations and liquidity.
See Note 3, "Goodwill and Intangible Assets", to the Condensed Consolidated Financial Statements for additional information on goodwill and intangible asset impairment charges recorded in the first quarter of 2020 due to the impact on future earnings related to the COVID-19 pandemic which qualified as a triggering event for all of the Company's reporting units as of March 31, 2020, and Note 5, "Short and Long-Term Debt", to the Condensed Consolidated Financial Statements for additional information on the Company's amendments to the Senior Secured Credit Agreement and Term Loan A Agreement, pursuant to which the senior secured leverage ratio has been eased and certain other covenants have been tightened.
Fair Value Measurements
The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.
Level Input:Input Definitions:
Level Input:Input Definitions:
Level I
Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the
measurement date.
Level II
Inputs other than quoted prices included in Level I that are observable for the asset or liability through
corroboration with market data at the measurement date.
Level III
Unobservable inputs that reflect management’s best estimate of what market participants would use in
pricing the asset or liability at the measurement date.
The availability of observable inputs can vary from asset to asset and is affected by a wide variety of factors, including, for example, the type of asset, whether the asset is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level III. In certain cases, the


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inputs used to measure fair value may fall into different levels of the fair value hierarchy.  In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The fair value of financial instruments is generally determined by reference to quoted market values. In cases where quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques, as appropriate. The fair value of interest rate swaps is determined based upon a discounted cash flow approach.
The Company measures financial instruments at fair value on a recurring basis and recognizes transfers within the fair value hierarchy at the end of the fiscal quarter in which the change in circumstances that caused the transfer occurred.
The following table summarizes fair value measurements by level at September 30, 20172020 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 $0 $0 $1 
Interest rate swaps (included in other non-current liabilities)0 94 0 94 
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities)0 0 4 4 

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 Level I Level II Level III Total
Interest rate swaps (included in other current and non-current liabilities)$—
 $24
 $—
 $24
Deferred compensation plan assets (included in other non-current assets)3
 —
 —
 3
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and non-current liabilities)—
 —
 33
 33
The following table summarizes fair value measurements by level at December 31, 20162019 for assets and liabilities measured at fair value on a recurring basis:
 Level I Level II Level III Total
Interest rate swaps (included in other non-current liabilities)$—
 $33
 $—
 $33
Deferred compensation plan assets (included in other non-current assets)3
 —
 —
 3
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and non-current liabilities)—
 —
 50
 50
Level ILevel IILevel IIITotal
Deferred compensation plan assets (included in other non-current assets)$2 $0 $0 $2 
Interest rate swaps (included in other current and non-current liabilities)0 47 0 47 
Contingent consideration for acquisitions (included in accrued expenses and other current liabilities and other non-current liabilities)0 0 4 4 
The fair value of the Company’s contingent consideration for acquisitions is measured using a probability weighted-average discount rate to estimate future cash flows based upon the likelihood of achieving future operating results for individual acquisitions.  These assumptions are deemed to be unobservable inputs and as such the Company’s contingent consideration is classified within Level III of the valuation hierarchy. The Company reassesses the fair value of the contingent consideration liabilities on a quarterly basis.
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, 2016 $50
Additions: contingent consideration related to acquisitions completed during the period 3
Reductions: payments of contingent consideration (reflected in the financing section of the Consolidated Statement of Cash Flows) (18)
Changes in fair value (reflected in the Consolidated Statement of Operations) (2)
Fair value of contingent consideration at September 30, 2017 $33


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Level III
Fair value of contingent consideration at December 31, 2019$4 
Additions: contingent consideration related to acquisitions completed during the period1 
Reductions: payments of contingent consideration(1)
Changes in fair value (reflected in general and administrative expenses)0 
Fair value of contingent consideration at September 30, 2020$4 
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, 2017 December 31, 2016 September 30, 2020December 31, 2019
DebtPrincipal Amount Estimated
Fair Value (a)		 Principal Amount Estimated
Fair Value (a)		DebtPrincipal AmountEstimated
Fair Value (a)		Principal AmountEstimated
Fair Value (a)
Senior Secured Credit Facility:       Senior Secured Credit Facility:
Revolving Credit Facility$190
 $190
 $200
 $200
Revolving Credit Facility$140 $140 $190 $190 
Term Loan B1,086
 1,092
 1,094
 1,100
Term Loan B1,050 1,003 1,058 1,048 
Term Loan A Facility:       Term Loan A Facility:
Term Loan A397
 398
 413
 414
Term Loan A694 664 717 705 
Term Loan A-1344
 345
 351
 351
4.50% Senior Notes450
 462
 450
 461
7.625% Senior Secured Second Lien Notes7.625% Senior Secured Second Lien Notes550 578 0 0 
5.25% Senior Notes550
 573
 550
 562
5.25% Senior Notes0 0 550 557 
4.875% Senior Notes500
 514
 500
 483
4.875% Senior Notes407 403 407 401 
Securitization obligations234
 234
 205
 205
9.375% Senior Notes9.375% Senior Notes550 570 550 572 
_______________
(a)The fair value of the Company's indebtedness is categorized as Level II.
Investment in Mortgage Origination Ventures(a)The fair value of the Company's indebtedness is categorized as Level II.
Equity Method Investments
At September 30, 2020 and December 31, 2019, the Company had various equity method investments which are recorded within other non-current assets on the accompanying Condensed Consolidated Balance Sheets.
The Company owns 49.9% of PHH Home Loans, a mortgage origination venture formedCompany's investment in 2005 created for the purpose of originating and selling mortgage loans primarily sourced through the Company’s real estate brokerage and relocation businesses. PHH Corporation ("PHH") owns the remaining percentage. On February 15, 2017, Realogy announced that it and Guaranteed Rate, Inc. (“Guaranteed Rate”) agreed to form a new mortgage origination venture, Guaranteed Rate Affinity, LLC ("Guaranteed Rate Affinity"), which began doing business in August 2017. Guaranteed Rate owns a controlling 50.1% stake at Realogy Title Group had investment balances of Guaranteed Rate Affinity while Realogy owns 49.9%. Guaranteed Rate has responsibility for the oversight of the officers and senior employees of Guaranteed Rate Affinity who are designated to manage Guaranteed Rate Affinity.
In accordance with the asset purchase agreement, Guaranteed Rate Affinity is acquiring certain assets of the mortgage operations of PHH Home Loans, including its four regional centers and employees across the United States, but not its mortgage assets. The asset purchase agreement and the movement of employees from the existing joint venture to the new joint venture is expected to be completed in a series of five phases. The first two phases were completed in the third quarter of 2017 and in October the third phase was completed. The remaining two phases are expected to be completed in the fourth quarter of 2017. While the equity earnings related to PHH Home Loans are included in the financial results of the Company Owned Real Estate Brokerage Services segment, the equity earnings related to Guaranteed Rate Affinity are included in the financial results of the Title and Settlement Services segment.
At September 30, 2017 and December 31, 2016, the Company had various equity method investments aggregating $85$99 million and $66 million, respectively. The Company's investment in PHH Home Loans was $46$60 million at September 30, 20172020 and $59 million at December 31, 2016.2019, respectively. The Company's investment in Guaranteed Rate Affinity was $31 million at September 30, 2017.
For the third quarter of 2017, the Company recorded equity earnings of $10$51 million which consisted of $14 million of earnings from the sale of the first two phases of PHH Home Loans' assets to Guaranteed Rate Affinity, partially offset by $2 million of exit costs. In addition, there was a $2 million loss from equity method investments at the Title and Settlement Services segment primarily related to costs associated with the start up of operations of Guaranteed Rate Affinity, including $1 million of amortization of intangible assets recorded in purchase accounting. For the third quarter of 2016, the Company recorded equity earnings of $5 million of which $4 million related to its investment in PHH Home Loans.
ForGuaranteed Rate Affinity during the ninethree months ended September 30, 2017, the2020 and 2019, respectively. The Company recorded equity earnings of $7$95 million which consisted of $14 million of earnings from the sale of the first two phases of PHH Home Loans' assets to Guaranteed Rate Affinity, partially offset by $5 million of exit costs and losses of $1 million from the continuing operations results of PHH Home Loans. In addition, there was a $1 million loss from equity method investments at the Title and Settlement Services segment primarily related to costs associated with the start up of operations of Guaranteed Rate Affinity, including $1 million of


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amortization of intangible assets recorded in purchase accounting. For the nine months ended September 30, 2016, the Company recorded equity earnings of $10 million of which $7$12 million related to its investment in PHH Home Loans.
The Company received $24 million and $5 million in cash dividends, primarily from PHH Home Loans,Guaranteed Rate Affinity during the nine months ended September 30, 20172020 and 2016,2019, respectively. The Company received $56 million in cash dividends from Guaranteed Rate Affinity during the nine months ended September 30, 2020 and 0 cash dividends during the nine months ended September 30, 2019. The Company invested $34$2 million of cash into Guaranteed Rate Affinity during the nine months ended September 30, 2017.2019.

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The Company's other equity method investments at Realogy Title Group had investment balances totaling $9 million at both September 30, 2020 and December 31, 2019. The Company recorded equity earnings from the operations of these equity method investments of $2 million during both the three months ended September 30, 2020 and 2019. The Company recorded equity earnings from the operations of these equity method investments of $3 million during both the nine months ended September 30, 2020 and 2019. The Company received $3 million and $2 million in cash dividends from these equity method investments during the nine months ended September 30, 2020 and 2019, respectively.
Income Taxes
The Company's provision for income taxes in interim periods is computed by applying its estimated annual effective tax rate against the income before income taxes for the period.  In addition, non-recurring or discrete items are recorded in the period in which they occur.  The provision for income taxes was an expense of $67$54 million and $74a benefit of $23 million for the three months ended September 30, 20172020 and 2016,2019, respectively, and an expensea benefit of $131$67 million and $114$22 million for the nine months ended September 30, 20172020 and 2016,2019, respectively.
Derivative Instruments
The Company records derivatives and hedging activities on the balance sheet at their respective fair values. The Company uses foreign currency forward contracts largely to manage its exposure to changes in foreign currency exchange rates associated with its foreign currency denominated receivables and payables.  The Company primarily manages its foreign currency exposure to the Euro, British Pound, Swiss Franc and Canadian Dollar. The Company has not elected to utilize hedge accounting for these forward contracts; therefore, any change in fair value is recorded in the Condensed Consolidated Statements of Operations. However, the fluctuations in the value of these forward contracts generally offset the impact of changes in the value of the underlying risk that they are intended to economically hedge. As of September 30, 2017, the Company had outstanding foreign currency forward contracts in an asset position with a fair value of less than $1 million and a notional value of $32 million. As of December 31, 2016, the Company had outstanding foreign currency forward contracts in a liability position with a fair value of $2 million and a notional value of $29 million.
The Company also enters into interest rate swaps to manage its exposure to changes in interest rates associated with its variable rate borrowings. TheInterest rates swaps with a notional value of $600 million expired on August 7, 2020. As of September 30, 2020, the Company hashad interest rate swaps with an aggregate notional value of $1,475$1,000 million to offset the variability in cash flows resulting from the term loan facilities as follows:
Notional Value (in millions)Commencement DateExpiration Date
$225450July 2012February 2018November 2017November 2022
$200400January 2013February 2018August 2020August 2025
$600150August 2015August 2020
$450November 2017November 2022November 2027
The swaps help to protect our outstanding variable rate borrowings from future interest rate volatility. The Company has not elected to utilize hedge accounting for these interest rate swaps; therefore, any change in fair value is recorded in the Condensed Consolidated Statements of Operations.
The fair value of derivative instruments was as follows:
Liability Derivatives Fair Value
Not Designated as Hedging Instruments Balance Sheet Location September 30, 2017 December 31, 2016Not Designated as Hedging InstrumentsBalance Sheet LocationSeptember 30, 2020December 31, 2019
Interest rate swap contracts Other current and non-current liabilities $24
 $33
Interest rate swap contractsOther current and non-current liabilities94 47 
The effect of derivative instruments on earnings was as follows:
Derivative Instruments Not Designated as Hedging Instruments Location of (Gain) or Loss Recognized for Derivative Instruments (Gain) or Loss Recognized on DerivativesDerivative Instruments Not Designated as Hedging InstrumentsLocation of Loss Recognized for Derivative InstrumentsLoss Recognized on Derivatives
Three Months Ended September 30, Nine Months Ended September 30,Three Months Ended September 30,Nine Months Ended September 30,
2017 2016 2017 20162020201920202019
Interest rate swap contracts Interest expense $—
 $(5) $4
 $40
Interest rate swap contractsInterest expense$0 $12 $59 $50 
Foreign exchange contracts Operating expense 1
 (1) 2
 (1)
Restricted Cash
Restricted cash primarily relates to amounts specifically designated as collateral for the repayment of outstanding borrowings under the Company’s securitization facilities. Such amounts approximated $4 million and $7$1 million at

September 30, 2020 and 0 at December 31, 2019.


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Revenue
September 30, 2017 and December 31, 2016, respectively, and are primarily included within other current assetsRevenue 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 the Company’sour Condensed Consolidated Balance Sheets.Statements of Operations and further disaggregated by business segment as follows:
Three Months Ended September 30,
 Realogy Franchise GroupRealogy Brokerage GroupRealogy Title
Group		Corporate and OtherTotal
Company
2020201920202019202020192020201920202019
Gross commission income (a)$0 $0 $1,458 $1,201 $0 $0 $0 $0 $1,458 $1,201 
Service revenue (b)14 24 9 2 207 165 0 0 230 191 
Franchise fees (c)227 186 0 0 0 0 (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 GroupRealogy Brokerage GroupRealogy Title
Group		Corporate and OtherTotal
Company
2020201920202019202020192020201920202019
Gross commission income (a)$0 $0 $3,227 $3,310 $0 $0 $0 $0 $3,227 $3,310 
Service revenue (b)41 66 18 7 494 430 0 0 553 503 
Franchise fees (c)502 505 0 0 0 0 (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.
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, 2020Additions during the periodRecognized as Revenue during the periodEnding Balance at September 30, 2020
Realogy Franchise Group:
Deferred area development fees (a)$48 $0 $(5)$43 
Deferred brand marketing fund fees (b)13 45 (50)8 
Other deferred income related to revenue contracts11 19 (21)9 
Total Realogy Franchise Group72 64 (76)60 
Realogy Brokerage Group:
Advanced commissions related to development business (c)9 6 (6)9 
Other deferred income related to revenue contracts4 1 (2)3 
Total Realogy Brokerage Group13 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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Allowance for Doubtful Accounts
The Company estimates the allowance necessary to provide for uncollectible accounts receivable. The estimate is based on historical experience, combined with a review of current conditions and forecasts of future losses, and includes specific accounts for which payment has become unlikely. The process by which the Company calculates the allowance begins in the individual business units where specific problem accounts are identified and reserved primarily based upon the age profile of the receivables and specific payment issues, combined with reasonable and supportable forecasts of future losses.
Supplemental Cash Flow Information
Significant non-cash transactions during the nine months ended September 30, 20172020 and 20162019 included capitalfinance lease additions of $13$9 million and $10$12 million, respectively, which resulted in non-cash additions to property and equipment, net and other non-current liabilities.
Stock RepurchasesLeases
The Company may repurchase shares of its common stock under authorizations made 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.
In February 2016,Other than the Company's Board of Directors authorized a share repurchase program of up to $275 million offacility closures as described in Note 6, "Restructuring Costs," the Company's common stock. In February 2017, the Company's Board of Directors authorized a new share repurchase program of up to an additional $300 million of the Company's common stock.
Aslease obligations as of September 30, 2017,2020 have not changed materially from the amounts reported in our 2019 Form 10-K.
Recently Adopted Accounting Pronouncements
The Company had repurchasedadopted the new accounting standard on Financial Instruments—Credit Losses (Topic 326) effective January 1, 2020. The new standard amends the guidance for measuring credit losses on certain financial instruments and retired 13 million sharesfinancial assets, including trade receivables. The standard requires that companies recognize an allowance that reflects the current estimate of common stock for an aggregate of $275 million undercredit losses expected to be incurred over the February 2016 share repurchase program and $102 million under the February 2017 share repurchase program at a total weighted average market price of $29.07 per share, including 1.8 million shares of common stock repurchased during the third quarter of 2017 for $58 million at a weighted average market price of $33.83 per share. As of September 30, 2017, approximately $198 million of authorization remains available for the repurchase of shares under the February 2017 share repurchase program.
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 sharelife of the Company’s common stock during eachfinancial instrument. The valuation allowance for credit losses should be recognized and measured based on historical experience, current conditions and expectations of the first, second and third quartersfuture. The initial adoption of 2017.
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.
Pursuantthis guidance did not have an impact to the Company’s policy, the dividends payable in cash are treated as a reduction of additional paid-in capital since the Company is currently in a retained deficit position.Condensed Consolidated Financial Statements upon adoption on January 1, 2020.
Recently Issued Accounting Pronouncements
The Company considers the applicability and impact of all Accounting Standards Updates. ASUs not listed belowUpdates ("ASUs"). Recently issued standards were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations.
In August 2016, the FASB issued a new standard on classification of cash receipts and payments on the statement of cash flows intending to reduce diversity in practice on how certain transactions are classified. In addition, in November 2016, the FASB issued a new standard requiring that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new standards are effective for annual periods beginning after December 15, 2017 and will require a retrospective application at the beginning of the earliest comparative period presented in the year of adoption. The Company plans to early adopt the new standard in the fourth quarter of 2017. The Company expects there to be reclassifications between cash flow categories, but no net cash impact to its Condensed Consolidated Statement of Cash Flows.


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In February 2016, the FASB issued its new standard on leases Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity which requires virtually all leases to besimplifies the accounting for instruments with characteristics of liabilities and equity, including convertible debt. The new standard reduces the number of accounting models for convertible debt instruments and convertible preferred stock resulting in fewer embedded conversion features being separately recognized onfrom the balance sheet. Lessees will recognize a right-of-use assethost contract and a lease liability for all leases (other than leases that meet the definitioninterest rate of a short-term lease). The liability will be equalmore convertible debt instruments being closer to the present value of lease payments.coupon interest rate, as compared with current guidance. The asset willnew standard also amends the derivative guidance for the “own stock” scope exception, which exempts qualifying instruments from being accounted for as derivatives if certain criteria are met. In addition, the standard changes the diluted earnings per share calculation for instruments that may be based on the liability, subject to adjustment, such assettled in cash or shares and for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance leases. Operating leases will result in straight-line expense, similar to current operating leases, while finance leases will result in a front-loaded expense pattern, similar to current capital leases. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines.convertible instruments. The new standard is effective for annualreporting periods beginning on or after December 15, 2018. Early2021 with early adoption is permitted. The new leasing standard requires modified retrospective transition, which requires applicationpermitted as of the new guidance at the beginning of the earliest comparative period presented in the year of adoption. The Company is currently evaluating the impact of the standard on its consolidated financial statements and is in the process of implementing a new lease management system.
In May 2014, the FASB issued a standard on revenue recognition that will impact most companies to some extent. The objective of the revenue standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and the timing of revenue recognition.January 1, 2021. The new standard permits for two alternative implementation methods, the use ofrequires adoption using either (1)a full retrospective application to each prior reporting period presented or (2) modified retrospective application in which the cumulative effect of initially applying the revenue standardapproach and is recognized asnot expected to have an adjustment to the opening balance of retained earnings in the period of adoption. The Company plans to adopt the new standard in the first quarter of 2018 using the modified retrospective transition method. The Company has made progressimpact on redrafting its revenue recognition accounting policies affected by the standard, assessing the redesign of internal controls, as well as evaluating the expanded disclosure requirements. After a review of the Company's revenue streams, the Company does not expect the new standard to have a material impact on financial results as the majority of the Company's revenue is recognized at the completion of a homesale transaction which will not result in a change in the timing of recognition of revenue transactions under the new revenue recognition guidance.statements.
2.ACQUISITIONS
2017 Acquisitions
During the nine months ended September 30, 2017, the Company acquired eleven real estate brokerage operations through its wholly owned subsidiary, NRT, for aggregate cash consideration of $6 million and established $1 million of contingent consideration. These acquisitions resulted in goodwill of $5 million, pendings and listings of $1 million and other intangibles of $1 million.2.    DISCONTINUED OPERATIONS
During the nine months ended September 30, 2017, the Company acquired one title and settlement operation through its wholly owned subsidiary, TRG, for cash consideration of $7 million and established $2 million of contingent consideration. This acquisition resulted in goodwill of $8 million and pendings of $1 million.
None of the 2017 acquisitions were significant to the Company’s results of operations, financial position or cash flows individually or in the aggregate.
2016 Acquisitions
During the year ended December 31, 2016, the Company acquired eleven real estate brokerage and property management operations through its wholly owned subsidiary, NRT, for aggregate cash consideration of $74 million and established $9 million of contingent consideration. These acquisitions resulted in goodwill of $52 million, customer relationships of $20 million, pendings and listings of $6 million, other intangible assets of $3 million, other assets of $5 million and other liabilities of $3 million.
During the year ended December 31, 2016, the Company acquired one title and settlement operation through its wholly owned subsidiary, TRG, for cash consideration of $24 million and established $10 million of contingent consideration. This acquisition resulted in goodwill of $20 million, title plant of $7 million, pendings of $5 million, trademarks of $3 million, other intangible assets of $2 million, other assets of $6 million and other liabilities of $9 million.


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None of the 2016 acquisitions were significant to the Company’s results of operations, financial position or cash flows individually or in the aggregate.


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3.INTANGIBLE ASSETS
Goodwill by segment and changes in the carrying amount are as follows:
 
Real Estate
Franchise
Services
 
Company
Owned
Brokerage
Services
 
Relocation
Services
 
Title and
Settlement
Services
 
Total
Company
Gross goodwill as of December 31, 2016$3,315
 $1,051
 $641
 $469
 $5,476
Accumulated impairment losses(1,023) (158) (281) (324) (1,786)
Balance at December 31, 20162,292
 893
 360
 145
 3,690
Goodwill acquired—
 6
 —
 8
 14
Balance at September 30, 2017$2,292
 $899
 $360
 $153
 $3,704
Intangible assets are as follows:
 As of September 30, 2017 As of December 31, 2016
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Amortizable—Franchise agreements (a)$2,019
 $708
 $1,311
 $2,019
 $658
 $1,361
Indefinite life—Trademarks (b)$748
   $748
 $748
   $748
Other Intangibles           
Amortizable—License agreements (c)$45
 $10
 $35
 $45
 $9
 $36
Amortizable—Customer relationships (d)550
 330
 220
 550
 312
 238
Indefinite life—Title plant shares (e)18
   18
 18
   18
Amortizable—Pendings and listings (f)2
 1
 1
 6
 5
 1
Amortizable—Other (g)33
 16
 17
 33
 13
 20
Total Other Intangibles$648
 $357
 $291
 $652
 $339
 $313
_______________
(a)    Generally amortized over a period of 30 years.
(b)
Primarily relates to the Century 21®, Coldwell Banker®, ERA®, Corcoran®, Coldwell Banker Commercial® and Cartus tradenames, which are expected to generate future cash flows for an indefinite period of time.
(c)
Relates to the Sotheby’s International Realty® and Better Homes and Gardens® Real Estate agreements which are being amortized over 50 years (the contractual term of the license agreements).
(d)Relates to the customer relationships at the Relocation Services segment, the Title and Settlement Services segment, the Real Estate Franchise Services segment and our Company Owned Real Estate Brokerage Services segment. These relationships are being amortized over a period of 2 to 20 years.
(e)Ownership in a title plant is required to transact title insurance in certain states. The Company expects to generate future cash flows for an indefinite period of time.
(f)Generally amortized over a period of 5 months.
(g)Consists of covenants not to compete which are amortized over their contract lives and other intangibles which are generally amortized over periods ranging from 5 to 10 years.
Intangible asset amortization expense is as follows:
 Three Months Ended
September 30,		 Nine Months Ended
September 30,
 2017 2016 2017 2016
Franchise agreements$16
 $16
 $50
 $50
License agreements1
 —
 1
 1
Customer relationships5
 7
 18
 20
Pendings and listings2
 7
 3
 9
Other1
 1
 4
 4
Total$25
 $31
 $76
 $84
Based on the Company’s amortizable intangible assets as of September 30, 2017, the Company expects related amortization expense for the remainder of 2017, the four succeeding years and thereafter to be approximately $25 million, $97 million, $97 million, $95 million, $92 million and $1,178 million, respectively.
4.ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consisted of:
 September 30, 2017 December 31, 2016
Accrued payroll and related employee costs$123
 $138
Accrued volume incentives38
 40
Accrued commissions41
 31
Restructuring accruals7
 14
Deferred income60
 69
Accrued interest31
 13
Contingent consideration for acquisitions23
 24
Other119
 106
Total accrued expenses and other current liabilities$442
 $435
5.    SHORT AND LONG-TERM DEBT
Total indebtedness is as follows:
 September 30, 2017 December 31, 2016
Senior Secured Credit Facility:   
Revolving Credit Facility$190
 $200
Term Loan B1,065
 1,069
Term Loan A Facility:   
Term Loan A395
 411
Term Loan A-1341
 347
4.50% Senior Notes443
 439
5.25% Senior Notes546
 545
4.875% Senior Notes496
 496
Total Short-Term & Long-Term Debt$3,476
 $3,507
Securitization obligations:   
Apple Ridge Funding LLC$223
 $192
Cartus Financing Limited11
 13
Total securitization obligations$234
 $205
Indebtedness Table
As of September 30, 2017, the Company’s borrowing arrangements were as follows:
 Interest
Rate		 Expiration
Date		 Principal Amount Unamortized Discount and Debt Issuance Costs Net Amount
Senior Secured Credit Facility:         
Revolving Credit Facility (1)(2) October 2020 $190
 $ *
 $190
Term Loan B(3) July 2022 1,086
 21
 1,065
Term Loan A Facility:         
Term Loan A(4) October 2020 397
 2
 395
Term Loan A-1(5) July 2021 344
 3
 341
Senior Notes4.50% April 2019 450
 7
 443
Senior Notes5.25% December 2021 550
 4
 546
Senior Notes4.875% June 2023 500
 4
 496
Securitization obligations: (6)         
        Apple Ridge Funding LLC (7)  June 2018 223
 *
 223
        Cartus Financing Limited (8)  August 2018 11
 *
 11
Total (9)$3,751
 $41
 $3,710


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_______________
*The debt issuance costs related to our Revolving Credit Facility and securitization obligations are classified as a deferred financing asset within other assets.
(1)As of September 30, 2017, the Company had $1,050 million of borrowing capacity under its Revolving Credit Facility, leaving $860 million of available capacity. The revolving credit facility expires in October 2020, but is classified on the balance sheet as current due to the revolving nature of the facility. On November 1, 2017, the Company had $70 million in outstanding borrowings under the Revolving Credit Facility, leaving $980 million of available capacity.
(2)Interest rates with respect to revolving loans under the Senior Secured Credit Facility at September 30, 2017 are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended September 30, 2017.
(3)
The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B is based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) JPMorgan Chase Bank, N.A.’s prime rate ("ABR") plus 1.25% (with an ABR floor of 1.75%).
(4)
The Term Loan A provides for quarterly amortization payments, which commenced March 31, 2016, totaling per annum 5%, 5%, 7.5%, 10.0% and 12.5% of the original principal amount of the Term Loan A in 2016, 2017, 2018,On November 6, 2019, and 2020, respectively. The interest rates with respect to term loans under the Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended September 30, 2017.
(5)The Term Loan A-1 provides for quarterly amortization payments, which commenced on September 30, 2016, totaling per annum 2.5%, 2.5%, 5%, 7.5% and 10.0% of the original principal amount of the Term Loan A-1, with the last amortization payment made on June 30, 2021. The interest rates with respect to term loans under the Term Loan A-1 are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended September 30, 2017.
(6)Available capacity is subject to maintaining sufficient relocation related assets to collateralize these securitization obligations.
(7)In June 2017, Realogy Group extended the existing Apple Ridge Funding LLC securitization program utilized by Cartus until June 2018. As of September 30, 2017, the Company had $325 million of borrowing capacity under the Apple Ridge Funding LLC securitization program leaving $102 million of available capacity.
(8)
Consists of a £10 million revolving loan facility and a £5 million working capital facility. As of September 30, 2017, the Company had $20 million of borrowing capacity under the Cartus Financing Limited securitization program leaving $9 million of available capacity. In September 2017, Realogy Group extended the existing Cartus Financing Limited securitization program to August 2018.
(9)Not included in this table is the Company's Unsecured Letter of Credit Facility which had a capacity of $74 million with $71 million utilized at a weighted average rate of 3.24% at September 30, 2017.
Maturities Table
As of September 30, 2017, the combined aggregate amount of maturities for long-term borrowings, excluding securitization obligations, for the remainder of 2017 and each of the next four years is as follows:
Year Amount
Remaining 2017 (a) $200
2018 57
2019 527
2020 357
2021 837
_______________

(a)The current portion of long-term debt consists of remaining 2017 amortization payments totaling $5 million, $2 million and $3 million for the Term Loan A, Term Loan A-1 and Term Loan B facilities, respectively, as well as $190 million of revolver borrowings under the revolving credit facility which expires in October 2020, but are classified on the balance sheet as current due to the revolving nature of the facility.


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Senior Secured Credit Facility
In July 2016, the Company entered into a third amendment (the “Third Amendment”) toPurchase and Sale Agreement for the Amended and Restated Credit Agreement, dated asacquisition of March 5, 2013, as amended. The Third Amendment replacedCartus Relocation Services, the $1,858 million Term Loan B due MarchCompany's global employee relocation business, by North American Van Lines, Inc. (as assignee of SIRVA Worldwide, Inc., or "SIRVA"). On August 8, 2020, with a new $1,100 million Term Loan B due July 20, 2022. In January 2017, the Company entered into a fourth amendment (the “Fourth Amendment”confidential settlement agreement with SIRVA and affiliates of Madison Dearborn Partners, LLC to mutually dismiss and release all claims related to the Amended and Restated Credit Agreement, as so amended, the "Senior Secured Credit Agreement") that repriced the Term Loan B through a refinancingtermination of the existing term loan with a new Term Loan B. The Fourth Amendment reducedPurchase and Sale Agreement. Management conducted an assessment under held for sale and discontinued operations guidance in ASC 360 and ASC 205 and determined that as of September 30, 2020 held for sale and discontinued operations accounting treatment continues to be appropriate for Cartus Relocation Services.
Commencing in the interest rate by 75 basis points but did not change the maturity date for the Term Loan B. The Company also entered into an Incremental Assumption Agreement to the Senior Secured Credit Agreement pursuant to whichfourth quarter of 2019, the Company increasedmet the borrowing capacity under its Revolving Credit Facilityrequirements to $1,050 million fromreport the existing $815 million.
The Senior Secured Credit Agreement provides for:
(a) a Term Loan B issued in the original aggregate principal amount of $1,100 million with a maturity date of July 2022. The Term Loan B has quarterly amortization payments totaling 1% per annum of the initial aggregate principal amount. The interest rate with respect to term loans under the Term Loan B is based on, at Realogy Group's option, adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or ABR plus 1.25% (with an ABR floor of 1.75%); and
(b)a $1,050 million Revolving Credit Facility with a maturity date of October 23, 2020, which includes (i) a $125 million letter of credit subfacility and (ii) a swingline loan subfacility. The interest rate with respect to revolving loans under the Revolving Credit Facility is based on, at Realogy Group's option, adjusted LIBOR or ABR plus an additional margin subject to the following adjustments based on the Company’s then current senior secured leverage ratio:
Senior Secured Leverage Ratio Applicable LIBOR Margin Applicable ABR Margin
Greater than 3.50 to 1.00 2.50% 1.50%
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 2.25% 1.25%
Less than 2.50 to 1.00 2.00% 1.00%
The Senior Secured Credit Agreement permits the Company to obtain up to $500 million of additional credit facilities from lenders reasonably satisfactory to the administrative agent and us, without the consentoperating results of the existing lenders underCartus Relocation Services business as discontinued operations. Accordingly, the new senior secured credit facility, plus an unlimited amount if Realogy Group's senior secured leverage ratioincome (loss) related to Cartus Relocation Services is less than 3.50 to 1.00 on a pro forma basis. Subject to certain restrictions, the Senior Secured Credit Agreement also permits us to issue senior secured or unsecured notesreported in lieu of any incremental facility.
The obligations under the Senior Secured Credit Agreement are secured to the extent legally permissible by substantially all of the assets of Realogy Group, Realogy Intermediate and all of their domestic subsidiaries, other than certain excluded subsidiaries.
Realogy Group’s Senior Secured Credit Agreement contains financial, affirmative and negative covenants and requires Realogy Group to maintain a senior secured leverage ratio, not to exceed 4.75 to 1.00. The leverage ratio is tested quarterly regardless of the amount of borrowings outstanding and letters of credit issued under the revolver at the testing date. Total senior secured net debt does not include unsecured indebtedness, including the Unsecured Notes as well as the securitization obligations. At September 30, 2017, Realogy Group was in compliance with the senior secured leverage ratio covenant.
Term Loan A Facility
In October 2015, Realogy Group entered into the Term Loan A senior secured credit agreement which provides for a five-year, $435 million loan issued at par with a maturity date of October 23, 2020 (the “Term Loan A”) and has terms substantially similar to the Senior Secured Credit Agreement. The Term Loan A provides for quarterly amortization payments, which commenced March 31, 2016, totaling the amount per annum equal to the following percentages of the original principal amount of the Term Loan A: 5%, 5%, 7.5%, 10.0% and 12.5% for amortizations payable in 2016, 2017, 2018, 2019 and 2020, with the balance payable upon the final maturity date. The interest rates with respect to term loans under the Term Loan A are based on, at our option, adjusted LIBOR or ABR plus an additional margin subject to the following adjustments based"Net (loss) income from discontinued operations" on the Company’s then current senior secured leverage ratio:

Condensed Consolidated Statements of


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Senior Secured Leverage Ratio Applicable LIBOR Margin Applicable ABR Margin
Greater than 3.50 to 1.00 2.50% 1.50%
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 2.25% 1.25%
Less than 2.50 to 1.00 2.00% 1.00%
Operations for all periods presented. In July 2016, Realogy Group entered into a first amendmentaddition, the related assets and liabilities are reported as assets and liabilities held for sale on the Condensed Consolidated Balance Sheets. The cash flows related to the Term Loan A senior secured credit agreement. Under the amendment, the Company issued the Term Loan A-1discontinued operations have been segregated and are included in the amountCondensed Consolidated Statements of $355 million with a maturity dateCash Flows.
The following table summarizes the operating results of discontinued operations described above and reflected within "Net (loss) income from discontinued operations" in July 2021 under its existing Term Loan A Facility and on terms substantially similar to its existing Term Loan A. The Term Loan A-1 providesthe Company’s Condensed Consolidated Statements of Operations for quarterly amortization payments totaling per annum 2.5%, 2.5%, 5%, 7.5% and 10.0%each of the original principal amountperiods presented:
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Net revenues$52 $79 $152 $210 
Total expenses57 69 176 216 
(Loss) income from discontinued operations(5)10 (24)(6)
Estimated loss on the sale of discontinued operations (a)(59)0 (133)0 
Income tax (benefit) expense from discontinued operations(18)2 (43)(1)
Net (loss) income from discontinued operations$(46)$8 $(114)$(5)
_______________
(a)Adjustment to record assets and liabilities held for sale at the lower of carrying value or fair value less any costs to sell based on a market price that is reasonable in relation to fair value.
Assets and liabilities held for sale related to discontinued operations presented in the Term Loan A-1, which commencedCondensed Consolidated Balance Sheets at September 30, 2016 continuing through June 30, 2021.
The interest rates with respect to term loans under the Term Loan A-1 are based on, at our option, adjusted LIBOR or ABR plus an additional margin subject to the following adjustments based on the Company’s then current senior secured leverage ratio:
Senior Secured Leverage Ratio Applicable LIBOR Margin Applicable ABR Margin
Greater than 3.50 to 1.00 2.50% 1.50%
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00 2.25% 1.25%
Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00 2.00% 1.00%
Less than 2.00 to 1.00 1.75% 0.75%
Consistent with the Senior Secured Credit Agreement, the Term Loan A Facility permits the Company to obtain up to $500 million of additional credit facilities from lenders reasonably satisfactory to the administrative agent and the company, without the consent of the existing lenders under the Term Loan A, plus an unlimited amount if the Company's senior secured leverage ratio is less than 3.50 to 1.00 on a pro forma basis. Subject to certain restrictions, the Term Loan A Facility also permits us to issue senior secured or unsecured notes in lieu of any incremental facility.
Unsecured Notes
The 4.50% Senior Notes, 5.25% Senior Notes and 4.875% Senior Notes (each as defined below, collectively the "Unsecured Notes") are unsecured senior obligations of Realogy Group that mature on April 15, 2019, December 1, 2021 and June 1, 2023, respectively. Interest on the Unsecured Notes is payable each year semiannually on April 15 and October 15 for the 4.50% Senior Notes and June 12020 and December 1 for both the 5.25% Senior Notes and 4.875% Senior Notes.
The Unsecured Notes are guaranteed on an unsecured senior basis by each domestic subsidiary of Realogy Group that is a guarantor under the Senior Secured Credit Facility and Realogy Group's outstanding debt securities and are guaranteed by Realogy Holdings on an unsecured senior subordinated basis.
Other Debt Facilities
The Company has an Unsecured Letter of Credit Facility to provide for the issuance of letters of credit required for general corporate purposes by the Company. At September 30, 2017, the capacity of the facility was $74 million with $71 million being utilized and at December 31, 2016, the capacity of the facility was $131 million with $127 million being utilized. In August 2017, the standby irrevocable letter of credit, which was utilized to support the Company’s payment obligations with respect to its share of Cendant contingent and other corporate liabilities, was terminated as a result of the resolution of a Cendant legacy tax matter, reducing the capacity and outstanding letters of credit under the Unsecured Letter of Credit Facility. The facility's expiration dates2019 are as follows:
 September 30, 2020December 31, 2019
Carrying amounts of the major classes of assets held for sale
Cash and cash equivalents$13 $28 
Restricted cash4 3 
Trade receivables40 46 
Relocation receivables200 203 
Other current assets10 12 
Property and equipment, net42 36 
Operating lease assets, net21 36 
Goodwill176 176 
Trademarks76 76 
Other intangibles, net156 156 
Allowance for reduction of assets held for sale (a)(155)(22)
Total assets classified as held for sale$583 $750 
Carrying amounts of the major classes of liabilities held for sale
Accounts payable$45 $53 
Securitization obligations143 206 
Current portion of operating lease liabilities6 6 
Accrued expenses and other current liabilities78 62 
Long-term operating lease liabilities25 29 
Total liabilities classified as held for sale$297 $356 
Capacity (in millions)Expiration Date
$8September 2018
$66December 2019
_______________

(a)Adjustment to record assets and liabilities held for sale at the lower of carrying value or fair value less any costs to sell based on a market price that is reasonable in relation to fair value.


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The fixed pricing to the Company is based on a spread above the credit default swap rate for senior unsecured debt obligations of the Company over the applicable letter of credit period. Realogy Group's obligations under the Unsecured Letter of Credit Facility are guaranteed on an unsecured senior basis by each domestic subsidiary of Realogy Group that is a guarantor under the Senior Secured Credit Facility and Realogy Group's outstanding debt securities.
Securitization Obligations
Securitization Obligations in the table above are further broken out as follows:
 September 30, 2020December 31, 2019
Securitization Obligations:
Apple Ridge Funding LLC$137 $195 
Cartus Financing Limited6 11 
Total Securitization Obligations$143 $206 
Realogy Group has secured obligations through Apple Ridge Funding LLC under a securitization program. In June 2017,2020, Realogy Group reduced the maximum borrowing capacity under the Apple Ridge Funding LLC securitization program from $250 million to $200 million and, in August 2020, extended the program untilfacility to June 2018. The program has a capacity2021. As of $325 million. At September 30, 2017, Realogy Group2020, the Company had $223$200 million of outstanding borrowingsborrowing capacity under the facility.Apple Ridge Funding LLC securitization program with $137 million being utilized leaving $63 million of available capacity subject to maintaining sufficient relocation related assets to collateralize the securitization obligation.
Realogy Group, through a special purpose entity known as Cartus Financing Limited, has agreements providing for a £10 million revolving loan facility and a £5 million working capital facility. In September 2017,August 2020, Realogy Group extended the existing Cartus Financing Limited securitization program to August 2018. There2021. As of September 30, 2020, there were $11$6 million of outstanding borrowings onunder the facilities at September 30, 2017.leaving $13 million of available capacity subject to maintaining sufficient relocation related assets to collateralize the securitization obligation. These Cartus Financing Limited facilities are secured by the relocation assets of a U.K. government contract in this special purpose entity and are therefore classified as permitted securitization financings as defined in Realogy Group’s Senior Secured Credit FacilityAgreement and the indentures governing the Unsecured Notes and 7.625% Senior Secured Second Lien Notes.
The Apple Ridge entities and the Cartus Financing Limited entity are consolidated special purpose entities that are utilized to securitize relocation receivables and related assets. These assets are generated from advancing funds on behalf of clients of Realogy Group’s relocation business in order to facilitate the relocation of their employees. Assets of these special purpose entities are not available to pay Realogy Group’s general obligations. Under the Apple Ridge program, provided no termination or amortization event has occurred, any new receivables generated under the designated relocation management agreements are sold into the securitization program and as new eligible relocation management agreements are entered into, the new agreements are designated to the program.
The Apple Ridge program has restrictive covenants and trigger events, including performance triggers linked to the age and quality of the underlying assets, foreign obligor limits, multicurrency limits, financial reporting requirements, restrictions on mergers and change of control, any uncured breach of Realogy Group’s senior secured leverage ratio under Realogy Group’s Senior Secured Credit Facility, and cross-defaults to Realogy Group’s material indebtedness. The occurrence of a trigger event under the Apple Ridge securitization facility could restrict our ability to access new or existing funding under this facility or result in termination of the facility, either of which would adversely affect the operation of our relocation business.Cartus Relocation Services and the Company.
Certain of the funds that Realogy Group receivesreceived from relocation receivables and related assets mustare required to be utilized to repay securitization obligations. These obligations wereare collateralized by $259$193 million and $238$200 million of underlying relocation receivables and other related relocation assets at September 30, 20172020 and December 31, 2016,2019, respectively. Substantially all relocation related assets are realized in less than twelve months from the transaction date. Accordingly, all of Realogy Group’s securitization obligations are classified as current in the accompanying Condensed Consolidated Balance Sheets.
Interest incurred in connection with borrowings under these facilities amounted to $1 million and $2 million for the three months ended September 30, 20172020 and 20162019, respectively, and $5$4 million and $6 million for the nine months ended September 30, 20172020 and 2016. This interest is recorded within net revenues in the accompanying Condensed Consolidated Statements of Operations as related borrowings are utilized to fund Realogy Group's relocation business where interest is generally earned on such assets.2019, respectively. These securitization obligations represent floating rate debt for which the average weighted interest rate was 3.3%3.6% and 2.5%4.3% for the nine months ended September 30, 20172020 and 20162019, respectively.

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3.    GOODWILL AND INTANGIBLE ASSETS
Impairment of Goodwill and Other Indefinite-lived Intangible Assets
Goodwill represents the excess of acquisition costs over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Other indefinite-lived intangible assets primarily consist of trademarks acquired in business combinations. Goodwill and other indefinite-lived assets are not amortized, but are subject to impairment testing. The aggregate carrying values of our goodwill and other indefinite-lived intangible assets are subject to an impairment assessment annually as of October 1, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. This assessment compares carrying values of the goodwill reporting units and other indefinite lived intangible assets to their respective fair values and, when appropriate, the carrying value is reduced to fair value.
In testing goodwill, the fair value of each reporting unit is estimated using the income approach, a discounted cash flow approach. For the other indefinite lived intangible assets, fair value is estimated using the relief from royalty method. Management utilizes long-term cash flow forecasts and the Company's annual operating plans adjusted for terminal value assumptions. The fair value of the Company's reporting units and other indefinite lived intangible assets are determined utilizing the best estimate of future revenues, operating expenses including commission expense, market and general economic conditions, trends in the industry, as well as assumptions that management believes marketplace participants would utilize including discount rates, cost of capital, trademark royalty rates, and long-term growth rates. The trademark royalty rate was determined by reviewing similar trademark agreements with third parties. Although management believes that assumptions are reasonable, actual results may vary significantly.
During the first quarter of 2020, the Company determined that the impact on future earnings related to the COVID-19 pandemic qualified as a triggering event for all of our reporting units and accordingly, the Company performed an impairment assessment of goodwill and other indefinite-lived intangible assets as of March 31, 2020. This assessment resulted in the recognition of an impairment of Realogy Franchise Group trademarks of $30 million and a goodwill impairment of $413 million for Realogy Brokerage Group offset by an income tax benefit of $99 million resulting in a net reduction to Realogy Brokerage Group's carrying value of $314 million. The primary drivers to the impairments were a significant increase in the weighted average cost of capital due to the volatility in the capital and debt markets due to COVID-19 and the related lower projected financial results for 2020. The impairment charges are recorded on a separate line in the accompanying Condensed Consolidated Statements of Operations and are non-cash in nature.
These impairment assessments involve the use of accounting estimates and assumptions, changes in which could materially impact our financial condition or operating performance if actual results differ from such estimates and assumptions. To address this uncertainty, a sensitivity analysis is performed on key estimates and assumptions. Under the income approach, management used key valuation assumptions in determining the fair value estimates of the Company's reporting units including a discount rate based on the Company's best estimate of the weighted average cost of capital and a long-term growth rate based on the Company's best estimate of terminal growth rates.
As a result of the COVID-19 pandemic which caused volatility in the capital and debt markets, there was a significant increase in the weighted average cost of capital used to discount the future cash flows in the impairment assessment model. The following table provides a comparison of key assumptions used in the Company's impairment assessment performed in the first quarter of 2020 compared to the prior assessment performed in the fourth quarter of 2019:
Weighted Average Cost of CapitalLong-term Growth Rates
First Quarter 2020Fourth Quarter 2019First Quarter 2020Fourth Quarter 2019
Realogy Franchise Group10.0%8.5%2.5%2.5%
Realogy Brokerage Group11.0%9.0%2.0%2.0%
Realogy Title Group11.0%9.5%2.5%2.5%
Given the increase in the discount rate and lower projected 2020 financial results in the first quarter 2020 impairment analysis, the estimated excess fair value over carrying value for Realogy Franchise Group and Realogy Title Group was reduced to 7% and 5%, respectively. While management believes the assumptions used in the impairment test are reasonable, a 100 basis point increase in the discount rate, holding other assumptions constant, would result in an impairment of goodwill at Realogy Franchise Group and Realogy Title Group.

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There is a significant amount of future uncertainty related to the impact of the COVID-19 pandemic. In addition, significant negative industry or economic trends, disruptions to the business, unexpected significant changes or planned changes in use of the assets, a decrease in business results, growth rates that fall below management's assumptions, divestitures, and a sustained decline in the Company's stock price and market capitalization may have a negative effect on the fair values and key valuation assumptions, and such changes could result in changes to management's estimates of fair value and a material impairment of goodwill or other indefinite-lived intangible assets.
Goodwill
Goodwill by reporting unit and changes in the carrying amount are as follows:
Realogy Franchise GroupRealogy Brokerage GroupRealogy
Title
Group		Total
Company
Balance at December 31, 2019$2,476 $669 $155 $3,300 
Goodwill acquired0 0 0 0 
Impairment loss0 (413)0 (413)
Balance at September 30, 2020$2,476 $256 $155 $2,887 
Accumulated impairment losses (a)$1,160 $808 $324 $2,292 
_______________
(a)Includes impairment charges which reduced goodwill by $413 million, $237 million, $1,153 million and $489 million during the first quarter of 2020, third quarter of 2019, fourth quarter of 2008 and fourth quarter of 2007, respectively.
Intangible Assets
Intangible assets are as follows:
 As of September 30, 2020As of December 31, 2019
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Amortizable—Franchise agreements (a)$2,019 $910 $1,109 $2,019 $859 $1,160 
Indefinite life—Trademarks (b) (c)$643 $643 $673 $673 
Other Intangibles
Amortizable—License agreements (d)$45 $13 $32 $45 $12 $33 
Amortizable—Customer relationships (e)71 58 13 71 57 14 
Indefinite life—Title plant shares (f)20 20 19 19 
Amortizable—Other (g)23 19 4 27 21 6 
Total Other Intangibles$159 $90 $69 $162 $90 $72 
_______________
(a)Generally amortized over a period of 30 years.
(b)Primarily related to real estate franchise brands which are expected to generate future cash flows for an indefinite period of time.
(c)Realogy Franchise Group trademarks was impaired by $30 million during the first quarter of 2020.
(d)Relates to the Sotheby’s International Realty® and Better Homes and Gardens® Real Estate agreements which are being amortized over 50 years (the contractual term of the license agreements).
(e)Relates to the customer relationships at Realogy Title Group and Realogy Brokerage Group. These relationships are being amortized over a period of 2 to 12 years.
(f)Ownership in a title plant is required to transact title insurance in certain states. The Company expects to generate future cash flows for an indefinite period of time.
(g)Consists of covenants not to compete which are amortized over their contract lives and other intangibles which are generally amortized over periods ranging from 5 to 10 years.

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Intangible asset amortization expense is as follows:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2020201920202019
Franchise agreements$17 $17 $51 $51 
License agreements1 1 1 1 
Customer relationships0 0 1 2 
Other1 2 3 4 
Total$19 $20 $56 $58 
Based on the Company’s amortizable intangible assets as of September 30, 2020, the Company expects related amortization expense for the remainder of 2020, the 4 succeeding years and thereafter to be approximately $18 million, $72 million, $70 million, $70 million, $70 million and $858 million, respectively.
4.    ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consisted of:
 September 30, 2020December 31, 2019
Accrued payroll and related employee costs$146 $103 
Accrued volume incentives35 35 
Accrued commissions52 32 
Restructuring accruals12 11 
Deferred income37 43 
Accrued interest46 18 
Current portion of finance lease liabilities13 13 
Due to former parent19 18 
Other79 77 
Total accrued expenses and other current liabilities$439 $350 

5.    SHORT AND LONG-TERM DEBT
Total indebtedness is as follows:
 September 30, 2020December 31, 2019
Senior Secured Credit Facility:
Revolving Credit Facility$140 $190 
Term Loan B1,039 1,045 
Term Loan A Facility:
Term Loan A690 714 
7.625% Senior Secured Second Lien Notes540 0 
5.25% Senior Notes0 548 
4.875% Senior Notes405 405 
9.375% Senior Notes543 543 
Total Short-Term & Long-Term Debt$3,357 $3,445 

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Indebtedness Table
As of September 30, 2020, the Company’s borrowing arrangements were as follows:
Interest
Rate		Expiration
Date		Principal AmountUnamortized Discount and Debt Issuance CostsNet Amount
Senior Secured Credit Facility:
Revolving Credit Facility (1)(2)February 2023$140 $ *$140 
Term Loan B(3)February 20251,050 11 1,039 
Term Loan A Facility:
Term Loan A(4)February 2023694 4 690 
Senior Secured Second Lien Notes7.625%June 2025550 10 540 
Senior Notes4.875%June 2023407 2 405 
Senior Notes9.375%April 2027550 7 543 
Total$3,391 $34 $3,357 
_______________
* The debt issuance costs related to our Revolving Credit Facility are classified as a deferred financing asset within other assets.
(1)As of September 30, 2020, the $1,425 million Revolving Credit Facility had outstanding borrowings of $140 million, as well as $40 million of outstanding undrawn letters of credit. The Revolving Credit Facility expires in February 2023 but is classified on the balance sheet as current due to the revolving nature and terms and conditions of the facility. On November 3, 2020, the Company had 0 outstanding borrowings under the Revolving Credit Facility and $40 million of outstanding undrawn letters of credit.
(2)Interest rates with respect to revolving loans under the Senior Secured Credit Facility at September 30, 2020 were based on, at the Company's option, (a) adjusted London Interbank Offering Rate ("LIBOR") plus an additional margin or (b) JP Morgan Chase Bank, N.A.'s prime rate ("ABR") plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 2.25% and the ABR margin was 1.25% for the three months ended September 30, 2020.
(3)The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B is based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) ABR plus 1.25% (with an ABR floor of 1.75%).
(4)The Term Loan A provides for quarterly amortization payments, based on a percentage of the original principal amount of the Term Loan A, as follows: 0.625% per quarter from June 30, 2018 to March 31, 2020; 1.25% per quarter from June 30, 2020 to March 31, 2021; 1.875% per quarter from June 30, 2021 to March 31, 2022; and 2.50% per quarter for periods ending on or after June 30, 2022, with the balance of the Term Loan A due at maturity on February 8, 2023. The interest rates with respect to the Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter's senior secured leverage ratio, the LIBOR margin was 2.25% and the ABR margin was 1.25% for the three months ended September 30, 2020.
Maturities Table
As of September 30, 2020, the combined aggregate amount of maturities for long-term borrowings for the remainder of 2020 and each of the next four years is as follows:
YearAmount
Remaining 2020 (a)$152 
202162 
202281 
2023982 
202411 
_______________
(a)Remaining 2020 includes amortization payments totaling $9 million and $3 million for the Term Loan A and Term Loan B facilities, respectively, as well as $140 million of revolver borrowings under the Revolving Credit Facility which expires in February 2023 but is classified on the balance sheet as current due to the revolving nature and terms and conditions of the facility. The current portion of long-term debt of $198 million shown on the Condensed Consolidated Balance Sheets consists of four quarters of amortization payments totaling $47 million and $11 million for the Term Loan A and Term Loan B facilities, respectively, and $140 million of revolver borrowings under the Revolving Credit Facility.

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Senior Secured Credit Agreement and Term Loan A Agreement
The Company’s Amended and Restated Credit Agreement dated as of March 5, 2013, as amended, amended and restated, modified or supplemented from time to time (the “Senior Secured Credit Agreement”) governs the Company's senior secured credit facility (the “Senior Secured Credit Facility”, which includes the “Revolving Credit Facility” and the “Term Loan B”) and the Term Loan A Agreement dated as of October 23, 2015, as amended from time to time (the “Term Loan A Agreement”) governs the senior secured term loan A credit facility (the “Term Loan A Facility”).
Senior Secured Credit Facility
The Senior Secured Credit Facility includes:
(a)the Term Loan B issued in the original aggregate principal amount of $1,080 million with a maturity date of February 2025. The Term Loan B has quarterly amortization payments totaling 1% per annum of the initial aggregate principal amount. The interest rate with respect to term loans under the Term Loan B is based on, at Realogy Group's option, adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or ABR plus 1.25% (with an ABR floor of 1.75%); and
(b)a $1,425 million Revolving Credit Facility with a maturity date of February 2023, which includes a $125 million letter of credit subfacility. The interest rate with respect to revolving loans under the Revolving Credit Facility is based on, at Realogy Group's option, adjusted LIBOR or ABR plus an additional margin subject to the following adjustments based on the Company’s then current senior secured leverage ratio:
Senior Secured Leverage RatioApplicable LIBOR MarginApplicable ABR Margin
Greater than 3.50 to 1.002.50%1.50%
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.002.25%1.25%
Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.002.00%1.00%
Less than 2.00 to 1.001.75%0.75%
The obligations under the Senior Secured Credit Agreement are secured to the extent legally permissible by substantially all of the assets of Realogy Group, Realogy Intermediate and all of their domestic subsidiaries, other than certain excluded subsidiaries.
Realogy Group’s Senior Secured Credit Agreement contains financial, affirmative and negative covenants and requires Realogy Group to maintain (so long as the Revolving Credit Facility is outstanding) a senior secured leverage ratio.
On July 24, 2020, Realogy Group entered into amendments to the Senior Secured Credit Agreement and Term Loan A Agreement (referred to collectively herein as the “Amendments”), pursuant to which Realogy Group is required to maintain a senior secured leverage ratio not to exceed 6.50 to 1.00 commencing with the third quarter of 2020 through and including the second quarter of 2021. Following the second quarter of 2021, the maximum senior secured leverage ratio permitted will then step down to 5.50 to 1.00 for the third quarter of 2021 and thereafter step down by 0.25 on a quarterly basis to 4.75 to 1.00 (which was the applicable level prior to the effectiveness of the Amendments) on and after the second quarter of 2022.
The Amendments also tighten certain other covenants during the period commencing on July 24, 2020 until the Company issues its financial results for the third quarter of 2021 and concurrently delivers an officer’s certificate to its lenders showing compliance with the quarterly financial covenant, subject to earlier termination, or the “covenant period.” If Realogy Group’s senior secured leverage ratio does not exceed 5.50 to 1.00 for the fiscal quarter ending June 30, 2021, the covenant period will end at the time the Company delivers the compliance certificate to the lenders for such period; however, in either instance, the gradual step down in the senior secured leverage ratio, as described above, will continue to apply. The covenants revised during this covenant period include the reduction or elimination of the amount available for certain types of additional indebtedness, liens, restricted payments (including dividends and stock repurchases), investments (including acquisitions and joint ventures), and voluntary junior debt repayments. The Company also may elect to end the covenant period at any time, provided the senior secured leverage ratio does not exceed 4.75 to 1.00 as of the most recently ended quarter for which financial statements have been delivered. In such event, the leverage ratio will reset to the pre-Amendment level of 4.75 to 1.00 thereafter.
As of September 30, 2020, Realogy Group was required to maintain a senior secured leverage ratio not to exceed 6.50 to 1.00. The leverage ratio is tested quarterly regardless of the amount of borrowings outstanding and letters of credit issued

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under the Revolving Credit Facility at the testing date. Total senior secured net debt does not include the securitization obligations, 7.625% Senior Secured Second Lien Notes, or our unsecured indebtedness, including the Unsecured Notes. At September 30, 2020, Realogy Group was in compliance with the senior secured leverage ratio covenant with a senior secured leverage ratio of 2.29 to 1.00. For the calculation of the senior secured leverage ratio for the third quarter of 2020, see Part I., Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Senior Secured Leverage Ratio applicable to our Senior Secured Credit Facility and Term Loan A Facility.
Term Loan A Facility
The Term Loan A of $750 million due February 2023 provides for quarterly amortization based on a percentage of the original principal amount of the Term Loan A, as follows: 0.625% per quarter from June 30, 2018 to March 31, 2020; 1.25% per quarter from June 30, 2020 to March 31, 2021; 1.875% per quarter from June 30, 2021 to March 31, 2022; and 2.50% per quarter for periods ending on or after June 30, 2022, with the balance of the Term Loan A due at maturity on February 8, 2023. The interest rates with respect to the Term Loan A are based on, at the Company's option, adjusted LIBOR or ABR plus an additional margin subject to the following adjustments based on the Company’s then current senior secured leverage ratio:
Senior Secured Leverage RatioApplicable LIBOR MarginApplicable ABR Margin
Greater than 3.50 to 1.002.50%1.50%
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.002.25%1.25%
Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.002.00%1.00%
Less than 2.00 to 1.001.75%0.75%
The Term Loan A Agreement contains covenants that are substantially similar to those in the Senior Secured Credit Agreement. The Amendment to the Term Loan A Agreement, effective July 24, 2020, contains provisions substantially similar to those contained in the Amendment to the Senior Secured Credit Agreement.
Senior Secured Second Lien Notes
In June 2020, Realogy Group issued $550 million 7.625% Senior Secured Second Lien Notes. The 7.625% Senior Secured Second Lien Notes mature on June 15, 2025 and interest is payable semiannually on June 15 and December 15 of each year, commencing December 15, 2020.
The 7.625% Senior Secured Second Lien Notes are guaranteed on a senior secured second priority basis by Realogy Intermediate and each domestic subsidiary of Realogy Group, other than certain excluded entities, that is a guarantor under its Senior Secured Credit Facility and Term Loan A Facility and certain of its outstanding debt securities. The 7.625% Senior Secured Second Lien Notes are also guaranteed by Realogy Holdings on an unsecured senior subordinated basis. The 7.625% Senior Secured Second Lien Notes are secured by substantially the same collateral as Realogy Group's existing first lien obligations under its Senior Secured Credit Facility and Term Loan A Facility on a second priority basis.
The indentures governing the 7.625% Senior Secured Second Lien Notes contain various covenants that limit the ability of Realogy Intermediate, Realogy Group and Realogy Group’s restricted subsidiaries to take certain actions, which covenants are subject to a number of important exceptions and qualifications. These covenants are substantially similar to the covenants in the indenture governing the 9.375% Senior Notes due 2027, as described under Unsecured Notes below.
Unsecured Notes
In June 2020, the Company used the entire net proceeds from the $550 million 7.625% Senior Secured Second Lien Notes, together with cash on hand, to fund the redemption of all of the outstanding 5.25% Senior Notes due 2021, and to pay related interest, premium, fees, and expenses.
The 4.875% Senior Notes and the 9.375% Senior Notes (collectively the "Unsecured Notes") are unsecured senior obligations of Realogy Group that mature on June 1, 2023 and April 1, 2027, respectively. Interest on the Unsecured Notes is payable each year semiannually on June 1 and December 1 for the 4.875% Senior Notes, and on April 1 and October 1 for the 9.375% Senior Notes.
The Unsecured Notes are guaranteed on an unsecured senior basis by each domestic subsidiary of Realogy Group that is a guarantor under the Senior Secured Credit Facility, Term Loan A Facility and Realogy Group's outstanding debt securities and are guaranteed by Realogy Holdings on an unsecured senior subordinated basis.

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The indentures governing the Unsecured Notes contain various negative covenants that limit Realogy Group's and its restricted subsidiaries’ ability to take certain actions, which covenants are subject to a number of important exceptions and qualifications. These covenants include limitations on Realogy Group's and its restricted subsidiaries’ ability to (a) incur or guarantee additional indebtedness, or issue disqualified stock or preferred stock, (b) pay dividends or make distributions to their stockholders, (c) repurchase or redeem capital stock, (d) make investments or acquisitions, (e) incur restrictions on the ability of certain of their subsidiaries to pay dividends or to make other payments to Realogy Group, (f) enter into transactions with affiliates, (g) create liens, (h) merge or consolidate with other companies or transfer all or substantially all of their assets, (i) transfer or sell assets, including capital stock of subsidiaries and (j) prepay, redeem or repurchase debt that is subordinated in right of payment to the Unsecured Notes.
The covenants in the indenture governing the 9.375% Senior Notes are substantially similar to the covenants in the indentures governing the other Unsecured Notes, with certain exceptions, including several changes relating to Realogy Group’s ability to make restricted payments, and in particular, its ability to repurchase shares and pay dividends. Specifically, (a) the cumulative credit basket for restricted payments (i) was reset to 0 and builds from January 1, 2019, (ii) builds at 25% of Consolidated Net Income (as defined in the indenture governing the 9.375% Senior Notes) when the consolidated leverage ratio (as defined below) is equal to or greater than 4.0 to 1.0 (and 50% of Consolidated Net Income when it is less than 4.0 to 1.0) and, consistent with the indentures governing the other Unsecured Notes, is reduced by 100% of the deficit when Consolidated Net Income is a deficit and (iii) may not be used when the consolidated leverage ratio is equal to or greater than 4.0 to 1.0; (b) the $100 million general restricted payment basket may be used only for Restricted Investments (as defined in the indenture governing the 9.375% Senior Notes); (c) the indenture governing the 9.375% Senior Notes requires the consolidated leverage ratio to be less than 3.0 to 1.0 to use the unlimited general restricted payment basket (which payments will reduce the cumulative credit basket, but not below zero); and (d) the indenture governing the 9.375% Senior Notes contains a new restricted payment basket that may be used for up to $45 million of dividends per calendar year.
The consolidated leverage ratio is measured by dividing Realogy Group's total net debt by the trailing four quarters EBITDA. EBITDA, as defined in the indenture governing the 9.375% Senior Notes, is substantially similar to EBITDA calculated on a Pro Forma Basis, as those terms are defined in the Senior Secured Credit Agreement; however, under the Senior Secured Credit Agreement and Term Loan A Agreement (but not the indentures), the Company should include net after-tax gains or losses attributable to discontinued operations (pending divestiture) from the definition of consolidated net income solely for purposes of calculating compliance with the senior secured leverage ratio. Net debt under the indenture is Realogy Group's total indebtedness less (i) its cash and cash equivalents in excess of restricted cash and (ii) a $200 million seasonality adjustment permitted when measuring the ratio on a date during the period of March 1 to May 31.
Gain/Loss on the Early Extinguishment of Debt
AsDuring the nine months ended September 30, 2020, the Company recorded a loss on the early extinguishment of debt of $8 million as a result of the refinancing transactionissuance of $550 million of 7.625% Senior Secured Second Lien Notes due 2025 and the redemption of $550 million of 5.25% Senior Notes due 2021 in January of 2017 and reduction ofJune 2020.
During the Unsecured Letter of Credit Facility innine months ended September of 2017,30, 2019, the Company recorded lossesa gain on the early extinguishment of debt of $5 million which consisted of a $10 million gain as a result of the repurchase of $93 million of its 4.875% Senior Notes during the nine months ended September 30, 2017.third quarter of 2019, partially offset by a $5 million loss as a result of the refinancing transactions in the first quarter of 2019.


6.    RESTRUCTURING COSTS
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6.RESTRUCTURING COSTS
Restructuring charges were $2$13 million and $9$38 million for the three and nine months ended September 30, 2017,2020, respectively, and $9$11 million and $30$29 million for the three and nine months ended September 30, 2016,2019, respectively. The components of the restructuring charges for the three and nine months ended September 30, 20172020 and 20162019 were as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
2020 201920202019
Personnel-related costs (1)$3 $4 $10 $17 
Facility-related costs (2)10 6 28 11 
Other restructuring costs (3)0 1 0 1 
Total restructuring charges (4)$13 $11 $38 $29 

25
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
Personnel-related costs (1)$1
 $6
 $7
 $17
Facility-related costs (2)—
 2
 1
 7
Accelerated depreciation on asset disposals—
 1
 —
 1
Other restructuring costs (3)1
 —
 1
 5
Total restructuring charges$2
 $9
 $9
 $30
Table of Contents
_______________
(1)Personnel-related costs consist of severance costs provided to employees who have been terminated and duplicate payroll costs during transition.
(2)Facility-related costs consist of costs associated with planned facility closures such as contract termination costs, lease payments that will continue to be incurred under the contract for its remaining term without economic benefit to the Company and other facility and employee relocation related costs.
(3)Other restructuring costs consist of costs related to professional fees, consulting fees and other costs associated with restructuring activities which are primarily included in the Corporate and Other business segment.
Business Optimization Initiative(1)Personnel-related costs consist of severance costs provided to employees who have been terminated and duplicate payroll costs during transition.
During(2)Facility-related costs consist of costs associated with planned facility closures such as contract termination costs, amortization of lease assets that will continue to be incurred under the contract for its remaining term without economic benefit to the Company, accelerated depreciation on asset disposals and other facility and employee relocation related costs.
(3)Other restructuring costs consist of costs related to professional fees, consulting fees and other costs associated with restructuring activities which are primarily included in the Corporate and Other business segment.
(4)Restructuring charges for the three months ended September 30, 2020 relate to the Facility and Operational Efficiencies Program. Restructuring charges for the nine months ended September 30, 2020 include $36 million related to the Facility and Operational Efficiencies Program and $2 million related to the Leadership Realignment and Other Restructuring Activities Program. Restructuring charges for the three and nine months ended September 30, 2019 include $10 million and $25 million, respectively, related to the Facility and Operational Efficiencies Program and $1 million and $4 million, respectively, related to prior restructuring programs.
Facility and Operational Efficiencies Program
Beginning in the first quarter of 2019, the Company commenced the implementation of a plan to accelerate its office consolidation to reduce storefront costs, as well as institute other operational efficiencies to drive profitability. In addition, the Company commenced a plan to transform and centralize certain aspects of the operational support and drive changes in how it serves its affiliated independent sales agents from a marketing and technology perspective to help such agents be more productive and enable them to make their businesses more profitable. In the third quarter of 2019, the Company reduced headcount in connection with the wind-down of a former affinity program. In the fourth quarter of 2015,2019, the Company began a businessexpanded its operational efficiencies program to focus on workforce optimization. This workforce optimization initiative thatis focused on maximizingconsolidating similar or overlapping roles, reducing the efficiencynumber of hierarchical layers and effectivenessstreamlining work and decision making. Furthermore, at the end of 2019, the cost structureCompany expanded these strategic initiatives which have resulted in additional operational and facility related efficiencies in 2020. Additionally, the Company is evaluating its current office space needs and plans to transition to having more employees in a remote working environment as a result of eachopportunities identified during the COVID-19 crisis. As a result, additional facility and operational efficiencies are expected to be identified and implemented in the fourth quarter of the Company's business units.  The action was designed to improve client service levels across each of the business units while enhancing the Company's profitability2020 and incremental margins. The plan focused on several key areas of opportunity which include process improvement efficiencies, office footprint optimization, leveraging technology and media spend, centralized procurement, outsourcing administrative services and organizational design. The expected costs of activities undertaken in connection with the restructuring plan are largely complete.during 2021.
The following is a reconciliation of the beginning and ending restructuring reserve balances related to the Facility and Operational Efficiencies Program:
Personnel-related costsFacility-related costsTotal
Balance at December 31, 2019$6 $5 $11 
Restructuring charges (1)10 26 36 
Costs paid or otherwise settled(14)(19)(33)
Balance at September 30, 2020$2 $12 $14 
_______________
(1)In addition, the Company incurred an additional $17 million of facility-related costs for lease asset impairments in connection with the Business Optimization Initiative:
 Personnel-related costs Facility-related costs Accelerated depreciation on asset disposal Other restructuring costs Total
Balance at December 31, 2016$9
 $7
 $—
 $—
 $16
Restructuring charges7
 1
 —
 1
 9
Costs paid or otherwise settled(12) (5) —
 (1) (18)
Balance at September 30, 2017$4
 $3
 $—
 $—
 $7
Facility and Operational Efficiencies Program during the nine months ended September 30, 2020.
The following table shows the total restructuring costs currently expected to be incurred by type of cost forrelated to the Business Optimization Initiative:Facility and Operational Efficiencies Program:
Total amount expected to be incurred (1) Amount incurred
to date		 Total amount remaining to be incurred (1)
Personnel-related costs$34 $31 $3 
Facility-related costs73 42 31 
Other restructuring costs1 1 0 
Total$108 $74 $34 
_______________
(1)Facility-related costs include potential lease asset impairments to be incurred under the Facility and Operational Efficiencies Program.

 Total amount expected to be incurred Amount incurred to date Total amount remaining to be incurred
Personnel-related costs$32
 $32
 $—
Facility-related costs16
 14
 2
Accelerated depreciation related to asset disposals2
 1
 1
Other restructuring costs12
 11
 1
Total$62
 $58
 $4
26


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The following table shows the total restructuring costs currently expected to be incurred by reportable segment forrelated to the Business Optimization Initiative:Facility and Operational Efficiencies Program:
Total amount expected to be incurred Amount incurred
to date		 Total amount remaining to be incurred
Realogy Franchise Group$5 $5 $0 
Realogy Brokerage Group84 55 29 
Realogy Title Group5 5 0 
Corporate and Other14  9 5 
Total$108 $74 $34 
 Total amount expected to be incurred Amount incurred to date Total amount remaining to be incurred
Real Estate Franchise Services$5
 $5
 $—
Company Owned Real Estate Brokerage Services37
 35
 2
Relocation Services5
 5
 —
Title and Settlement Services1
 1
 —
Corporate and Other14
 12
 2
Total$62
 $58
 $4
Leadership Realignment and Other Restructuring Activities
7.STOCK-BASED COMPENSATION
Beginning in the first quarter of 2018, the Company commenced the implementation of a plan to drive its business forward and enhance stockholder value. The Company has stock-based compensation plans (the 2007 Stock Incentive Plankey aspects of this plan included senior leadership realignment, an enhanced focus on technology and the 2012 Long-Term Incentive Plan) under which incentive equity awards suchtalent, as non-qualified stock options, rightswell as further attention to purchase shares of common stock, restricted stock, restricted stock units ("RSUs"), performance restricted stock unitsoffice footprint and performance share units ("PSUs") may be issued to employees, consultants and directors of Realogy.other operational efficiencies. The Company's stockholders approved the Amended and Restated 2012 Long-Term Incentive Plan at the 2016 Annual Meeting of Stockholders held on May 4, 2016 (the "Amended and Restated 2012 LTIP"). The Amended and Restated 2012 LTIP increases the number of shares authorized for issuance under that plan by 9.8 million shares. The total number of shares authorized for issuance under the plans is 19.4 million shares.
Awards granted under the Amended and Restated 2012 LTIP utilizing the additional 9.8 million share reserve, except options and stock appreciation rights, must be counted against the foregoing share limit on a 2.22 share to one basis for each share actually grantedactivities undertaken in connection with such award. As of September 30, 2017, the total number of shares available for future grants under the Amended and Restated 2012 LTIP was approximately 3 million shares. The Company does not expect to issue any additional awards under the 2007 Stock Incentive Plan.
Consistent with the 2016 long-term incentive equity awards, the 2017 awards include a mix of PSUs, RSUs (performance restricted stock units for the CEO and direct reports) and options. The 2017 PSUsrestructuring plan are incentives that reward grantees based upon the Company's financial performance over a three-year performance period endingcomplete. At December 31, 2019. There are two PSU awards: one is based upon2019, the total stockholder return of Realogy's common stock relative to the total stockholder return of the SPDR S&P Homebuilders Index ("XHB") (the "RTSR award"), and the other is based upon the achievement of cumulative free cash flow goals. The number of shares that may be issued under the PSU is variable and based upon the extent to which the performance goals are achieved over the performance period (with a range of payout from 0% to 175% of target for the RTSR award and 0% to 200% of target for the achievement of cumulative free cash flow award). The shares earned will be distributed in early 2020. The RSUs vest over three years, with 33.33% vesting on each anniversary of the grant date. Time-vesting of the 2017 performance RSUs for the CEO and direct reports is subject to achievement of a minimum EBITDA performance goal for 2017. The stock options have a maximum term of ten years and vest over four years, with 25% vesting on each anniversary date of the grant date. The options have an exercise price equal to the closing sale price of the Company's common stock on the date of grant.
In August 2016, the Company’s Board of Directors approved the initiation of a quarterly cash dividend policy on its common stock. The Board declared a cash dividend of $0.09 per share of the Company’s common stock per quarter. When payment of cash dividends occurs, the Company issues dividend equivalent units ("DEUs") to eligible holders of


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outstanding RSUs and PSUs. The number of DEUs granted for each RSU or PSU is calculated by dividing the amount of the cash dividend on the number of shares covered by the RSU or PSU at the time of the related dividend record date by the closing price of the Company's stock on the related dividend payment date. The DEUs are subject to the same vesting requirements, settlement provisions, and other terms and conditions as the original award to which they relate. The issuance of DEUs have an immaterial impact on the Company's stock-based compensation activity.
The fair value of RSUs and PSUs without a market condition is equal to the closing sale price of the Company's common stock on the date of grant. The fair value of the RTSR PSU awardremaining liability was estimated on the date of grant using the Monte Carlo Simulation method utilizing the following assumptions. Expected volatility was based on historical volatilities of the Company and select comparable companies.
 2017 RTSR PSU
Weighted average grant date fair value$27.98
Weighted average expected volatility29.0%
Weighted average volatility of XHB18.4%
Weighted average correlation coefficient0.53
Weighted average risk-free interest rate1.5%
Weighted average dividend yield—
A summary of RSU activity for$5 million. During the nine months ended September 30, 2017 is presented below (number2020, the Company incurred facility-related costs of shares$2 million and paid or settled costs of $4 million resulting in millions):a remaining accrual of $3 million.
7.    EQUITY
Condensed Consolidated Statement of Changes in Equity for Realogy Holdings
Three Months Ended September 30, 2020
Common StockAdditional Paid-In CapitalAccumulated DeficitAccumulated Other Comprehensive LossNon- controlling InterestsTotal Equity
SharesAmount
Balance at June 30, 2020115.4 $1 $4,847 $(3,171)$(56)$4 $1,625 
Net income— — — 98 — 1 99 
Other comprehensive income— — — — 1 — 1 
Stock-based compensation— — 9 — — — 9 
Issuance of shares for vesting of equity awards0.1 0 — — — — 0 
Shares withheld for taxes on equity awards(0.1)0 0 — — — 0 
Dividends— — — — — (1)(1)
Balance at September 30, 2020115.4 $1 $4,856 $(3,073)$(55)$4 $1,733 
Three Months Ended September 30, 2019
Common StockAdditional Paid-In CapitalAccumulated DeficitAccumulated Other Comprehensive LossNon- controlling InterestsTotal Equity
SharesAmount
Balance at June 30, 2019114.3 $1 $4,837 $(2,537)$(51)$3 $2,253 
Net (loss) income— — — (113)— 1 (112)
Other comprehensive loss— — — — (1)— (1)
Stock-based compensation— — 10 — — — 10 
Dividends declared ($0.09 per share)— — (10)— — 0 (10)
Balance at September 30, 2019114.3 $1 $4,837 $(2,650)$(52)$4 $2,140 
 Nine Months Ended September 30, 2020
 Common StockAdditional
Paid-In
Capital		Accumulated
Deficit		Accumulated
Other
Comprehensive
Loss		Non-
controlling
Interests		Total
Equity
SharesAmount
Balance at December 31, 2019114.4 $1 $4,842 $(2,695)$(56)$4 $2,096 
Net (loss) income— — — (378)— 2 (376)
Other comprehensive income— — — — 1 — 1 
Stock-based compensation— — 19 — — — 19 
Issuance of shares for vesting of equity awards1.6 0 — — — — 0 
Shares withheld for taxes on equity awards(0.6)0 (5)— — — (5)
Dividends— — 0 — — (2)(2)
Balance at September 30, 2020115.4 $1 $4,856 $(3,073)$(55)$4 $1,733 
 Restricted
Stock Units		 Weighted Average Grant Date Fair Value
Unvested at January 1, 20171.4
 $37.53
Granted1.1
 28.22
Vested (a)(0.6) 39.56
Forfeited(0.1) 30.82
Unvested at September 30, 20171.8
 $31.34
______________
(a)The total fair value of RSUs which vested during the nine months ended September 30, 2017 was $26 million.
A summary of PSU activity for the nine months ended September 30, 2017 is presented below (number of shares in millions):
27
 Performance Share Units (a) Weighted Average Grant Date Fair Value
Unvested at January 1, 20171.0
 $36.66
Granted0.7
 27.70
Vested—
 —
Forfeited—
 —
Unvested at September 30, 20171.7
 $32.71
______________
(a)The PSU amounts in the table are shown at the target amount of the award.


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 Nine Months Ended September 30, 2019
 Common StockAdditional
Paid-In
Capital		Accumulated
Deficit		Accumulated
Other
Comprehensive
Loss		Non-
controlling
Interests		Total
Equity
SharesAmount
Balance at December 31, 2018114.6 $1 $4,869 $(2,507)$(52)$4 $2,315 
Net (loss) income— — — (143)— 2 (141)
Repurchase of common stock(1.2)0 (20)— — — (20)
Stock-based compensation— — 25 — — — 25 
Issuance of shares for vesting of equity awards1.3 0 — — — — 0 
Shares withheld for taxes on equity awards(0.4)0 (6)— — — (6)
Dividends declared ($0.27 per share)— — (31)— — (2)(33)
Balance at September 30, 2019114.3 $1 $4,837 $(2,650)$(52)$4 $2,140 
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 Group's equity.
Stock Repurchases
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.
The Company's Board of Directors authorized a share repurchase program of up to $275 million, $300 million, $350 million and $175 million of the Company's common stock in February 2016, 2017, 2018 and 2019, respectively.
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. The Company has not repurchased any shares under the share repurchase programs since 2019, and in May 2020, the Company's Board of Directors terminated its outstanding share repurchase programs.
The Company is restricted from repurchasing shares during the covenant period under the Amendments to the Senior Secured Credit Agreement and Term Loan A Agreement as well as pursuant to the restrictive covenants in the indentures governing the Unsecured Notes and 7.625% Senior Secured Second Lien Notes. See Note 5. "Short and Long-Term Debt—Senior Secured Credit Agreement and Term Loan A Agreement"and"—Unsecured Notes", to the Condensed Consolidated Financial Statements for additional information.
Stock-Based Compensation
During the first quarter of 2020, the Company granted restricted stock units related to 0.7 million shares with a weighted average grant date fair value of $9.70 and performance stock units related to 0.9 million shares with a weighted average grant date fair value of $9.23. The Company granted all time-based equity awards in the options was estimated onform of restricted stock units which are subject to ratable vesting over a three-year period.
During the datefirst quarter of grant using2020, instead of issuing stock-based compensation to certain employees, the Black-Scholes option-pricing model. Expected volatility wasCompany issued $18 million of time-vested cash awards which vest annually over a three-year vesting period, $6 million of cash-settled long-term performance awards which are tied to cumulative free cash flow goals that will vest at the end of the three-year performance cycle based on historical volatilitiesachievement of the Companyperformance metric and select comparable companies. The expected term$3 million of the options granted represents the period of time that options are expected to be outstanding and iscash-settled awards based on the simplified method. The risk-free interest rate was based on the U.S. Treasury yield curvechange in effectRealogy stock price that will vest at the timeend of the grant, which corresponds to the expected termthree-year performance cycle.

28
Table of the options.Contents
 2017 Options
Weighted average grant date fair value$8.00
Weighted average expected volatility30.7%
Weighted average expected term (years)6.25
Weighted average risk-free interest rate2.1%
Weighted average dividend yield1.3%
A summary of stock option unit activity for the nine months ended September 30, 2017 is presented below (number of shares in millions):
 Options 
Weighted Average
Exercise Price
Outstanding at January 1, 20173.3
 $31.69
Granted0.4
 27.56
Exercised (a) (b)(0.3) 23.77
Forfeited/Expired—
 —
Outstanding at September 30, 2017 (c)3.4
 $31.52
______________
(a)The intrinsic value of options exercised during the nine months ended September 30, 2017 was $2 million.
(b)Cash received from options exercised during the nine months ended September 30, 2017 was $7 million.
(c)Options outstanding at September 30, 2017 have an intrinsic value of $6 million and have a weighted average remaining contractual life of 5.8 years.
Stock-Based Compensation Expense
As of September 30, 2017, based on current performance achievement expectations, there was $45 million of unrecognized compensation cost related to incentive equity awards under the plans which will be recorded in future periods as compensation expense over a remaining weighted average period of approximately 1.2 years. The Company recorded stock-based compensation expense related to the incentive equity awards of $12 million and $38 million for the three and nine months ended September 30, 2017, respectively, and $14 million and $39 million for the three and nine months ended September 30, 2016, respectively.
8.    EARNINGS (LOSS) PER SHARE
Earnings (loss) per share attributable to Realogy Holdings
Basic earnings (loss) per share is computed based on net income (loss) attributable to Realogy Holdings stockholders divided by the basic weighted-average shares outstanding during the period. Dilutive earnings (loss) per share is computed consistently with the basic computation while giving effect to all dilutive potential common shares and common share equivalents that were outstanding during the period. Realogy Holdings uses the treasury stock method to reflect the potential dilutive effect of unvested stock awards and unexercised options.The following table sets forth the computation of basic and diluted earnings (loss) per share:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions, except per share data)2020201920202019
Numerator:
Numerator for earnings (loss) per share—continuing operations
Net income (loss) from continuing operations$145 $(120)$(262)$(136)
Less: Net income attributable to noncontrolling interests(1)(1)(2)(2)
Net income (loss) from continuing operations attributable to Realogy Holdings$144 $(121)$(264)$(138)
Numerator for earnings (loss) per share—discontinued operations
Net (loss) income from discontinued operations$(46)$8 $(114)$(5)
Net income (loss) attributable to Realogy Holdings shareholders$98 $(113)$(378)$(143)
Denominator:
Weighted average common shares outstanding (denominator for basic earnings (loss) per share calculation)115.4 114.3 115.2 114.2 
Dilutive effect of stock-based compensation (a)(b)1.3 0 0 0 
Weighted average common shares outstanding (denominator for diluted earnings (loss) per share calculation)116.7 114.3 115.2 114.2 
Basic earnings (loss) per share attributable to Realogy Holdings shareholders:
Basic earnings (loss) per share from continuing operations$1.25 $(1.06)$(2.29)$(1.21)
Basic (loss) earnings per share from discontinued operations(0.40)0.07 (0.99)(0.04)
Basic earnings (loss) per share$0.85 $(0.99)$(3.28)$(1.25)
Diluted earnings (loss) per share attributable to Realogy Holdings shareholders:
Diluted earnings (loss) per share from continuing operations$1.23 $(1.06)$(2.29)$(1.21)
Diluted (loss) earnings per share from discontinued operations(0.39)0.07 (0.99)(0.04)
Diluted earnings (loss) per share$0.84 $(0.99)$(3.28)$(1.25)
 Three Months Ended September 30, Nine Months Ended September 30,
(in millions, except per share data)2017 2016 2017 2016
Net income attributable to Realogy Holdings shareholders$95
 $106
 $176
 $156
Basic weighted average shares136.1
 144.0
 137.8
 145.4
Stock options, restricted stock units and performance share units (a)2.0
 1.1
 1.6
 1.2
Weighted average diluted shares138.1
 145.1
 139.4
 146.6
Earnings Per Share:       
Basic$0.70
 $0.74
 $1.28
 $1.07
Diluted$0.69
 $0.73
 $1.26
 $1.06
_______________
_______________
(a)The three and nine months ended September 30, 2017 respectively exclude 4.9(a)The three months ended September 30, 2020 exclude 8.3 million and 5.3 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. The three and nine months ended September 30, 2016 respectively exclude 5.2 million and 5.1 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.
In the third quarter of 2017, the Company repurchased and retired 1.8 million shares of common stock issuable for $58 million atincentive 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 had a weighted average market price of $33.83 per share. Fornet loss from continuing operations for the nine months ended September 30, 2017,2020 and three and nine months ended September 30, 2019 and therefore the Company repurchased and retired 5.9 million sharesimpact of common stock for $178 million at a weighted average market priceincentive equity awards were excluded from the computation of $30.40 per share. The shares repurchased include 77,900 shares for which the trade date occurred in late September 2017 while settlement occurred in October 2017. The purchase of shares under this plan reduces the weighted-average number of shares outstanding in the basic earningsdilutive loss per share calculation.as the inclusion of such amounts would be anti-dilutive.
9.COMMITMENTS AND CONTINGENCIES
9.    COMMITMENTS AND CONTINGENCIES
Litigation
The Company is involved in claims, legal proceedings, alternative dispute resolution and governmental inquiries related to alleged contract disputes, business practices, intellectual property and other commercial, employment, regulatory and tax matters. Examples of such matters include but are not limited to allegations:
•that the Company is vicariously liable for the acts of franchisees under theories of actual or apparent agency;
by current or former franchisees that franchise agreements were breached including improper terminations;
concerning claims for alleged RESPA or state real estate law violations including but not limited to claims challenging the validity of sales associates indemnification, and administrative fees;
thatindependent residential real estate sales associatesagents engaged by NRT—Realogy Brokerage Group or by affiliated franchisees—under certain state or federal laws—are potentially employees instead of independent contractors, and

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they or regulators therefore may bring claims against NRTRealogy Brokerage Group for breach of contract, wage and hour classification claims, wrongful discharge, unemployment and workers' compensation and could seek benefits, back wages, overtime, indemnification, penalties related to classification practices and expense reimbursement available to employees;employees or similar claims against Realogy Franchise Group as an alleged joint employer of an affiliated franchisee’s independent sales agents;
•concerning other employment law matters, including other types of worker classification claims as well as wage and hour claims and retaliation claims;
•concerning anti-trust and anti-competition matters;
•that the Company is vicariously liable for the acts of franchisees under theories of actual or apparent agency;
•by current or former franchisees that franchise agreements were breached including improper terminations;
•concerning alleged RESPA or state real estate law violations;
•concerning claims related to the Telephone Consumer Protection Act, including autodialer claims;
•concerning claims generally against the company owned brokerage operations for negligence, misrepresentation or breach of fiduciary duty in connection with the performance of real estate brokerage or other professional services as well as other brokerage claims associated with listing information and property history;
•related to copyright law, including infringement actions alleging improper use of copyrighted photographs on websites or in marketing materials without consent of the copyright holder;
•concerning breach of obligations to make websites and other services accessible for consumers with disabilities;
•concerning claims generally against the title companyagent contending that as the escrow company, the companyagent knew or should have known that a transaction was fraudulent or concerning otherthat the agent was negligent in addressing title defects or settlement errors; andconducting the settlement;


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•concerning information security and cyber crime.cyber-crime, including claims under new and emerging data privacy laws related to the protection of customer, employee or third-party information, as well as those related to the diversion of homesale transaction closing funds; and
•those related to general fraud claims.
Worker Classification Litigation
Whitlach v. Premier Valley, Inc. d/b/a Century 21 M&M and Century 21 Real Estate LLC (Superior Court of California, Stanislaus County). This was filed as a putative class action complaint on December 20, 2018 by plaintiff James Whitlach against Premier Valley Inc., a Century 21 Real Estate independently-owned franchisee doing business as Century 21 M&M (“Century 21 M&M”). The complaint also names Century 21 Real Estate LLC, a wholly-owned subsidiary of the Company and the franchisor of Century 21 Real Estate (“Century 21”), as an alleged joint employer of the franchisee’s independent sales agents and seeks to certify a class that could potentially include all agents of both Century 21 M&M and Century 21 in California. In February 2019, the plaintiff amended his complaint to assert claims pursuant to the California Private Attorneys General Act (“PAGA”). Following the Court's dismissal of the plaintiff's non-PAGA claims without prejudice in June 2019, the plaintiff continues to pursue his PAGA claims as a representative of purported "aggrieved employees" as defined by PAGA. As such representative, the plaintiff seeks all non-individualized relief available to the purported aggrieved employees under PAGA, as well as attorneys’ fees. Under California law, PAGA claims are generally not subject to arbitration and may result in exposure in the form of additional penalties.
Following the Court's grant of the defendants' demurrer to the plaintiff's amended complaint (with leave to replead), the plaintiff filed a second amended complaint asserting one cause of action for alleged civil penalties under PAGA in June 2020. In the second amended complaint, the plaintiff continues to allege that Century 21 M&M misclassified all of its independent real estate agents, salespeople, sales professionals, broker associates and other similar positions as independent contractors, failed to pay minimum wages, failed to provide meal and rest breaks, failed to pay timely wages, failed to keep proper records, failed to provide appropriate wage statements, made unlawful deductions from wages, and failed to reimburse plaintiff and the putative class for business related expenses, resulting in violations of the California Labor Code. Century 21 M&M filed its demurrer to the amended complaint, to which Century 21 filed a joinder (and, in the alternative, a motion to strike certain portions of the amended complaint), on August 3, 2020. This case raises various previously unlitigated claims and the PAGA claim adds additional litigation, financial and operating uncertainties.
Real Estate BusinessIndustry Litigation
Dodge, et al.Moehrl, Cole, Darnell, Nager, Ramey, Sawbill Strategic, Inc., Umpa and Ruh v. PHH Corporation, et al.The National Association of Realtors, Realogy Holdings Corp., formerly captioned Strader, et al.Homeservices of America, Inc., BHH Affiliates, LLC, The Long & Foster Companies, Inc., RE/

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MAX LLC, and HallKeller Williams Realty, Inc. (U.S. District Court for the Northern District of Illinois). This amended putative class action complaint (the "amended Moehrl complaint"), filed on June 14, 2019, (i) consolidates the Moehrl and Sawbill litigation reported in our Form 10-Q for the period ended March 31, 2019, (ii) adds certain plaintiffs and defendants, and (iii) serves as a response to the separate motions to dismiss filed on May 17, 2019 in the prior Moehrl litigation by each of NAR and the Company (along with the other defendants named in the prior Moehrl complaint).
In the amended Moehrl complaint, the plaintiffs allege that the defendants engaged in a continuing contract, combination, or conspiracy to unreasonably restrain trade and commerce in violation of Section 1 of the Sherman Act because defendant NAR allegedly established mandatory anticompetitive policies for the multiple listing services and its member brokers that require brokers to make an offer of buyer broker compensation when listing a property. The plaintiffs further allege that commission sharing, which provides for the broker representing the seller sharing or paying a portion of its commission to the broker representing the buyer, is anticompetitive and violates the Sherman Act, and that the defendant franchisors conspired with NAR by requiring their respective franchisees to comply with NAR’s policies and Code of Ethics. The plaintiffs seek a permanent injunction enjoining the defendants from requiring home sellers to pay buyer broker commissions or to otherwise restrict competition among buyer brokers, an award of damages and/or restitution, attorneys fees and costs of suit. In October 2019, the Department of Justice filed a statement of interest for this matter, in their words “to correct the inaccurate portrayal, by defendant The National Association of Realtors (‘NAR’), of a 2008 consent decree between the United States and NAR.” A motion to appoint lead counsel in the case was granted on an interim basis by the Court on May 30, 2020. On October 2, 2020, the Court denied the separate motions to dismiss filed in August 2019 by each of NAR and the Company (together with the other defendants named in the amended Moehrl complaint).
Sitzer and Winger v. PHH Corporation, et al.The National Association of Realtors, Realogy Holdings Corp., Homeservices of America, Inc., RE/MAX Holdings, Inc., and Keller Williams Realty, Inc. (U.S. District Court for the CentralWestern District of California)Missouri). This is a purportedputative class action broughtcomplaint filed on April 29, 2019 and amended on June 21, 2019 by four California residentsplaintiffs Joshua Sitzer and Amy Winger against 15NAR, the Company, Homeservices of America, Inc., RE/MAX Holdings, Inc., and Keller Williams Realty, Inc. The complaint contains substantially similar allegations, and seeks the same relief under the Sherman Act, as the Moehrl litigation. The Sitzer litigation is limited both in allegations and relief sought to the State of Missouri and includes an additional cause of action for alleged violation of the Missouri Merchandising Practices Act, or MMPA. On August 22, 2019, the Court denied defendants' motions to transfer the Sitzer matter to the U.S. District Court for the Northern District of Illinois and on October 16, 2019, denied the motions to dismiss this litigation filed respectively by NAR and the Company (together with the other named brokerage/franchisor defendants). In September 2019, the Department of Justice filed a statement of interest and appearances for this matter for the same purpose stated in the Moehrl matter and in July 2020 requested we provide them with all materials produced for Sitzer. Discovery between the plaintiffs and defendants includingis ongoing.
Rubenstein, Nolan v. The National Association of Realtors, Realogy Holdings Corp., Coldwell Banker, Sotheby’s Investment Realty, and Homeservices of America, Inc. (U.S. District Court for the District of Connecticut). In this action, the plaintiffs take issue with the same NAR policies related to buyer broker compensation at issue in the Moehrl and Sitzer matters, but claim the alleged conspiracy has harmed buyers (instead of sellers) and is a federal racketeering violation (instead of a violation of federal antitrust law). On October 29, 2020, the plaintiffs filed a statement with the Court outlining the alleged racketeering violations.
Securities Litigation
Tanaskovic v. Realogy Holdings Corp., et. al. (U.S. District Court for the District of New Jersey). This is a putative class action complaint filed on July 11, 2019 by plaintiff Sasa Tanaskovic against the Company and certain of its current and former executive officers. The lawsuit alleges violations of Sections 10(b), 20(a) and Rule 10b-5 of the Exchange Act in connection with allegedly false and misleading statements made by the Company about its business, operations, and prospects. The plaintiffs seek, among other things, compensatory damages for purchasers of the Company’s common stock between February 24, 2017 through May 22, 2019, as well as attorneys’ fees and costs. Locals 302 and 612 of the International Union of Operating Engineers-Employers Construction Industry Retirement Trust (the “Retirement Trust”), was appointed lead plaintiff on November 7, 2019. Lead plaintiff filed its amended complaint on March 6, 2020. The Company filed its motion to dismiss the amended complaint on August 3, 2020, the plaintiffs filed their opposition to such motion on September 17, 2020, and the Company filed its reply on November 2, 2020.
Fried v. Realogy Holdings Corp., et al. (U.S. District Court for the District of New Jersey). This is a putative derivative action filed on October 23, 2019 by plaintiff Adam Fried against the Company (as nominal defendant) and certain of its current and former executive officers and members of its Board of Directors (as defendants). The lawsuit alleges violations

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of Section 14(a) of the Exchange Act and breach of fiduciary duties for, among other things, allegedly false and misleading statements made by the Company about its business, operations and prospects as well as unjust enrichment claims. The plaintiff seeks, among other things, compensatory damages, disgorgement of improper compensation, certain reforms to the Company’s corporate governance and internal procedures and attorneys’ fees and costs. On December 23, 2019, the Court approved a motion staying this case pending further action in the Tanaskovic matter.
The Company disputes the allegations in each of the captioned matters described above and will vigorously defend these actions. Given the early stages of each of these cases, we cannot estimate a range of reasonably possible losses for this litigation.
The Company believes that it has adequately accrued for legal matters as appropriate. The Company records litigation accruals for legal matters which are both probable and estimable.
Litigation and other disputes are inherently unpredictable and subject to substantial uncertainties and unfavorable resolutions could occur. In addition, class action lawsuits can be costly to defend and, depending on the class size and claims, could be costly to settle.  As such, the Company could incur judgments or enter into settlements of claims with liability that are materially in excess of amounts accrued and these settlements could have a material adverse effect on the Company’s financial condition, results of operations or cash flows in any particular period.
* * *
Company-Initiated Litigation
Realogy Holdings Corp. v. SIRVA Worldwide, Inc., North American Van Lines, Inc., Madison Dearborn Capital Partners VII-A, L.P., Madison Dearborn Capital Partners VII-C, L.P., and Madison Dearborn Capital Partners VII Executive-A, L.P. (Court of Chancery of the State of Delaware). On August 8, 2020, the Company entered into a confidential settlement agreement with SIRVA, Inc., SIRVA Worldwide, Inc. (“SIRVA Worldwide”) and affiliates of Madison Dearborn Partners, LLC to mutually dismiss and release all claims related to the termination of the Purchase and Sale Agreement dated November 6, 2019 with North American Van Lines, Inc. (as assignee of SIRVA Worldwide) for the sale of the Company’s employee relocation services business, Cartus Corporation.
Realogy Holdings Corp., NRT New York LLC (d/b/a The Corcoran Group), Sotheby’s International Realty, Inc., Coldwell Banker Residential Brokerage Company, Coldwell Banker Residential Real Estate LLC, NRT West, Inc., Martha Turner Properties, L.P. And Better Homes and Gardens Real Estate LLC v. Urban Compass, Inc., and Compass, Inc. (Supreme Court New York, New York County). On July 10, 2019, the Company and certain of its subsidiaries PHH Corporationfiled a complaint against Urban Compass, Inc. and PHH Home Loans, LLC (a joint venture between RealogyCompass, Inc. (together, "Compass") alleging misappropriation of trade secrets; tortious interference with contract; intentional and PHH), allegingtortious interference with prospective economic advantage; unfair competition under New York common law; violations of the California Unfair Competition Law, Business and Professional Code Section 8(a)17200 et. seq. (unfair competition); violations of RESPA.  Plaintiffs seek to represent two subclasses comprisedNew York General Business Law Section 349 (deceptive acts or practices); violations of all persons in the United States who, since January 31, 2005, (1) obtained a RESPA-covered mortgage loan from either (a) PHH Home Loans, LLC or oneNew York General Business Law Sections 350 and 350-a (false advertising); conversion; and aiding and abetting breach of its subsidiaries, or (b) one of the mortgage services managed by PHH Corporation for other lenders, and (2) paid a fee for title insurance or settlement services to TRG or one of its subsidiaries.  Plaintiffs allege,contract. The Company seeks, among other things, that PHH Home Loans, LLC operates in violation of RESPAactual and that the other defendants violate RESPA by referring business to one another under agreements or arrangements.  Plaintiffs seek treblecompensatory damages, injunctive relief, and an award of attorneys’ fees costs and disbursements.  On May 19, 2017,costs. The Company subsequently amended its complaint (which, among other things, withdrew the parties heldcount for aiding and abetting breach of contract and added a mediation session, at which they agreedcount for defamation). Beginning in principle toSeptember 2019, Compass filed a settlementseries of the action, pursuant tomotions, which the Company would pay approximately $8 million (or one-halfopposed, including a motion to dismiss and a motion to compel arbitration with respect to certain claims involving Corcoran. In June 2020, having previously denied certain portions of Compass’ motion to dismiss, the Court denied the balance of the settlement). As a result,motion to dismiss, and denied as moot Compass’ motion to compel arbitration, granting the Company accrued $8 millionleave to amend the allegations in its complaint that relate to Corcoran’s exclusive listings in order to clarify the claims and damages sought in the second quarter of 2017 and the liability is included in accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. On July 31, 2017, the fourthaction. The Company filed its amended complaint wasin July 2020. On September 24, 2020, Compass filed changinga motion to compel arbitration with respect to certain claims in the named plaintiffs. At a hearing on the plaintiffs' motion for preliminary approval of the settlement held October 19, 2017, the Court indicated that if certain modest revisions are madeCompany's amended complaint concerning or purportedly related to the settlement agreementCorcoran and an amended motion for preliminary approval is filed by no later than November 3, 2017, the Court will grant preliminary approval to the settlement; however, there can be no assurance that the parties will reach a definitive settlement or that the Court will approve it.Sotheby’s International Realty, Inc.
* * *
The Company is involved in certain other claims and legal actions arising in the ordinary course of our business. Such litigation, regulatory actions and other proceedings may include, but are not limited to, actions relating to intellectual property, commercial arrangements, franchising arrangements, actions against our title company alleging it knew or should have known that others were committing mortgage fraud,the fiduciary duties of brokers, standard brokerage disputes like the failure to disclose accurate square footage or hidden defects in the property such as mold, vicarious liability based upon conduct of individuals or entities outside of our control, including franchisees and independent sales associates,agents, antitrust

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and anti-competition claims, general fraud claims (including wire fraud associated with third-party diversion of funds from a brokerage transaction), employment law claims, including claims challenging the classification of ourindependent sales associatesagents as independent contractors, wage and hour classificationrelated claims, and claims related to business actions responsive to the COVID-19 outbreak and governmental and regulatory directives thereto, and claims alleging violations of RESPA, or state consumer fraud statutes or federal consumer protection statutes. While the results of such claims and legal actions cannot be predicted with certainty, we do not believe based on information currently available to us that the final outcome of current proceedings against the Company will have a material adverse effect on our consolidated financial position, results of operations or cash flows. In addition, with the increasing requirements resulting from government laws and regulations concerning data breach notifications and data privacy and protection obligations, claims associated with these laws may become more common. While most litigation involves claims against the Company, from time to time the Company commences litigation, including litigation against former employees, franchisees and competitors when it alleges that such persons or entities have breached agreements or engaged in other wrongful conduct.
* * *
Cendant Corporate LitigationLiabilities and Guarantees to Cendant and Affiliates
Realogy Group (then Realogy Corporation) separated from Cendant on July 31, 2006 (the "Separation"), pursuant to a plan by Cendant (now known as Avis Budget Group, Inc.) to separate into four4 independent companies—one1 for each of Cendant's business units—real estate services (Realogy Group), travel distribution services ("Travelport"), hospitality services, including timeshare resorts ("Wyndham Worldwide"), and vehicle rental ("Avis Budget Group"). Pursuant to the Separation and Distribution Agreement dated as of July 27, 2006 among Cendant, Realogy Group, Wyndham Worldwide and Travelport (the "Separation and Distribution Agreement"), each of Realogy Group, Wyndham Worldwide and Travelport have assumed certain contingent and other corporate liabilities (and related costs and expenses), which are primarily related to each of their respective businesses. In addition, Realogy Group has assumed 62.5% and Wyndham Worldwide has assumed 37.5% of certain contingent and other corporate liabilities (and related costs and expenses) of Cendant or its subsidiaries, which are not primarily related to any of the respective businesses of Realogy Group, Wyndham Worldwide, Travelport and/or Cendant’s vehicle rental operations, in each case incurred or allegedly incurred on or prior to the date of the separation of Travelport from Cendant.
* * *
The Company believes that it has adequately accrued for legal matters as appropriate. The Company records litigation accruals for legal matters which are both probable and estimable.
Litigation and other disputes are inherently unpredictable and subject to substantial uncertainties and unfavorable resolutions could occur. In addition, class action lawsuits can be costly to defend and, depending on the class size and claims, could be costly to settle.  As such, the Company could incur judgments or enter into settlements of claims with


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liability that are materially in excess of amounts accrued and these settlements could have a material adverse effect on the Company’s financial condition, results of operations or cash flows in any particular period.
Transfer of Cendant Corporate Liabilities, Issuance of Guarantees to Cendant and Affiliates and Contingent Liability Letter of Credit
Realogy Group has certain guarantee commitments with Cendant (pursuant to the assumption of certain liabilities and the obligation to indemnify Cendant, Wyndham Worldwide and Travelport for such liabilities). These guarantee arrangements primarily relate to certain contingent litigation liabilities, contingent tax liabilities, and other corporate liabilities, of which Realogy Group assumed and is generally responsible for 62.5%. Upon separation from Cendant, the liabilities assumed by Realogy Group were comprised of certain Cendant corporate liabilities which were recorded on the historical books of Cendant as well as additional liabilities which were established for guarantees issued at the date of Separation related to certain unresolved contingent matters that could arise during the guarantee period. Regarding the guarantees, if any of the companies responsible for all or a portion of such liabilities were to default in its payment of costs or expenses related to any such liability, Realogy Group would be responsible for a portion of the defaulting party or parties’ obligation. To the extent such recorded liabilities are in excess or are not adequate to cover the ultimate payment amounts, such excess or deficiency will be reflected in the results of operations in future periods.
In April 2007, the Company established a standby irrevocable letter of credit for the benefit of Avis Budget Group in accordance with the Separation and Distribution Agreement. The letter of credit was utilized to support the Company’s payment obligations with respect to its share of Cendant contingent and other corporate liabilities. The stated amount of the standby irrevocable letter of credit was subject to periodic adjustment to reflect the then current estimate of Cendant contingent and other liabilities. The standby irrevocable letter of credit terminates if (i) the Company’s senior unsecured credit rating is raised to BB by Standard and Poor’s or Ba2 by Moody’s or (ii) the aggregate value of the former parent contingent liabilities falls below $30 million.
The letter of credit was $53 million at December 31, 2016. With the resolution of a Cendant legacy tax matter in the third quarter of 2017, the aggregate value of the former parent contingent liabilities fell below $30 million to $18 million and therefore the standby irrevocable letter of credit was terminated in accordance with the agreement.
The due to former parent balance was $18 million and $28$19 million at September 30, 20172020 and $18 million at December 31, 2016,2019, respectively. The due to former parent balance was comprised of the Company’s portion of the following: (i) Cendant’s remaining state and foreign contingent tax liabilities, (ii) accrued interest on contingent tax liabilities, (iii) potential liabilities related to Cendant’s terminated or divested businesses, and (iv)(iii) potential liabilities related to the residual portion of accruals for Cendant operations.
Tax Matters
The Company is subject to income taxes in the United States and several foreign jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes and recording related assets and liabilities. In the ordinary course of business, there are many transactions and calculations where the ultimate tax determination is uncertain. The Company is regularly under audit by tax authorities whereby the outcome of the audits is uncertain. The Company believes there is appropriate support for positions taken on its tax returns. The liabilities that have been recorded represent the best estimates of the probable loss on certain positions and are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. However, the outcomes of tax audits are inherently uncertain.
Under the Tax Sharing Agreement with Cendant, Wyndham Worldwide and Travelport, the Company is generally responsible for 62.5% of payments made to settle claims with respect to tax periods ending on or prior to December 31, 2006 that relate to income taxes imposed on Cendant and certain of its subsidiaries, the operations (or former operations) of which were determined by Cendant not to relate specifically to the respective businesses of Realogy, Wyndham Worldwide, Avis Budget or Travelport.
With respect to any remaining legacy Cendant tax liabilities, the Company and its former parent believe there is appropriate support for the positions taken on Cendant’s tax returns. However, tax audits and any related litigation, including disputes or litigation on the allocation of tax liabilities between parties under the Tax Sharing Agreement, could result in outcomes for the Company that are different from those reflected in the Company’s historical financial statements.


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Escrow and Trust Deposits
As a service to its customers, the Company administers escrow and trust deposits which represent undisbursed amounts received for the settlement of real estate transactions. Deposits at FDIC-insured institutions are insured up to $250 thousand.$250 thousand. These escrow and trust deposits totaled $472$943 million at September 30, 20172020 and $415$475 million at December 31, 2016.2019. These escrow and trust deposits are not assets of the Company and, therefore, are excluded from the accompanying Condensed Consolidated Balance Sheets. However, the Company remains contingently liable for the disposition of these deposits.

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10.SEGMENT INFORMATION
10.    SEGMENT INFORMATION
The reportable segments presented below represent the Company’s operating segments for which separate financial information is available and which is utilized on a regular basis by its chief operating decision maker to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its operating segments. During the first quarter of 2020, Realogy Leads Group was consolidated into Realogy Franchise Group and the segment change is reflected for all periods presented. Realogy Leads Group, which previously was part of Cartus, consists of the Company's affinity and broker-to-broker business, as well as the broker network made up of agents and brokers from Realogy’s residential real estate brands and certain independent real estate brokers (which is referred to as the Realogy Advantage Broker Network).
Management evaluates the operating results of each of its reportable segments based upon revenue and Operating EBITDA. Operating EBITDA which is defined by us as net income (loss) before depreciation and amortization, interest (income) expense, net, (other than Relocation Services interest for relocation receivables and securitization obligations) and income taxes, eachand other items that are not core to the operating activities of which is presented in the Company’s Condensed Consolidated StatementsCompany such as restructuring charges, former parent legacy items, gains or losses on the early extinguishment of Operations.debt, impairments, gains or losses on discontinued operations and gains or losses on the sale of investments or other assets. The Company’s presentation of Operating EBITDA may not be comparable to similar measures used by other companies.
 Revenues (a) (b)
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
Real Estate Franchise Services$224
 $215
 $631
 $593
Company Owned Real Estate Brokerage Services1,267
 1,231
 3,556
 3,340
Relocation Services111
 116
 290
 308
Title and Settlement Services154
 164
 431
 424
Corporate and Other (c)(82) (82) (238) (225)
Total Company$1,674
 $1,644
 $4,670
 $4,440


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 Revenues (a) (b)
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Realogy Franchise Group$262 $240 $609 $679 
Realogy Brokerage Group1,479 1,222 3,281 3,369 
Realogy Title Group213 170 510 444 
Corporate and Other (c)(97)(82)(220)(224)
Total Company$1,857 $1,550 $4,180 $4,268 
_______________
 
 
(a)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 $238 million for the three and nine months ended September 30, 2017, respectively, and $82 million and $225 million for the three and nine months ended September 30, 2016, respectively. Such amounts are eliminated through the Corporate and Other line.
(b)Revenues for the Relocation Services segment include intercompany referral commissions paid by the Company Owned Real Estate Brokerage Services segment of $11 million and $31 million for the three and nine months ended September 30, 2017, respectively, and $12 million and $33 million for the three and nine months ended September 30, 2016, respectively. Such amounts are recorded as contra-revenues by the Company Owned Real Estate Brokerage Services segment. There are no other material intersegment transactions.
(c)Includes the elimination of transactions between segments.
(a)Transactions between segments are eliminated in consolidation. Revenues for the Realogy Franchise Group include intercompany royalties and marketing fees paid by Realogy Brokerage Group of $97 million and $220 million for the three and nine months ended September 30, 2020, respectively, and $82 million and $224 million for the three and nine months ended September 30, 2019, respectively. Such amounts are eliminated through the Corporate and Other line.
 EBITDA
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 (a) 2016 (b) 2017 (c) 2016 (d)
Real Estate Franchise Services$159
 $153
 $427
 $394
Company Owned Real Estate Brokerage Services62
 74
 113
 131
Relocation Services37
 40
 65
 74
Title and Settlement Services21
 23
 49
 49
Corporate and Other (e)(25) (20) (70) (60)
Total Company$254
 $270
 $584
 $588
Less:       
Depreciation and amortization (f)$51
 $53
 $150
 $149
Interest expense, net41
 37
 127
 169
Income tax expense67
 74
 131
 114
Net income attributable to Realogy Holdings and Realogy Group$95
 $106
 $176
 $156
(b)Revenues for Realogy Franchise Group include intercompany referral commissions related to Realogy Advantage Broker Network paid by Realogy Brokerage Group of $3 million and $8 million for the three and nine months ended September 30, 2020, respectively, and $6 million and $14 million for the three and nine months ended September 30, 2019, respectively. Such amounts are recorded as contra-revenues by Realogy Brokerage Group. There are no other material intersegment transactions.
_______________
(a)The three months ended September 30, 2017 includes a net cost of $1 million of former parent legacy items and $1 million related to the loss on the early extinguishment of debt in Corporate and Other, and restructuring charges of $2 million in the Company Owned Real Estate Brokerage Services segment.
(b)The three months ended September 30, 2016 includes $9 million of restructuring charges as follows: $1 million in the Real Estate Franchise Services segment, $6 million in the Company Owned Real Estate Brokerage Services segment, $1 million in the Relocation Services segment and $1 million in the Title and Settlement Services segment.
(c)The nine months ended September 30, 2017 includes an $8 million expense related to the settlement of the Strader legal matter and $5 million related to the losses on the early extinguishment of debt, partially offset by a net benefit of $10 million of former parent legacy items in Corporate and Other, and $9 million of restructuring charges as follows: $8 million in the Company Owned Real Estate Brokerage Services segment and $1 million in the Real Estate Franchise Services segment.
(d)The nine months ended September 30, 2016 includes $30 million of restructuring charges as follows: $4 million in the Real Estate Franchise Services segment, $15 million in the Company Owned Real Estate Brokerage Services segment, $4 million in the Relocation Services segment, $1 million in the Title and Settlement Services segment and $6 million in Corporate and Other, and a net cost of $1 million of former parent legacy items included in Corporate and Other.
(e)Includes the elimination of transactions between segments.
(f)Depreciation and amortization for both the three and nine months ended September 30, 2017 includes $1 million of amortization expense related to Guaranteed Rate Affinity's purchase accounting included in the "Equity in earnings of unconsolidated entities" line on the Condensed Consolidated Statement of Operations.

(c)Includes the elimination of transactions between segments.


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 Operating EBITDA
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Realogy Franchise Group$196 $170 $419 $448 
Realogy Brokerage Group61 31 25 16 
Realogy Title Group95 31 168 54 
Corporate and Other (a)(43)(26)(94)(75)
Total continuing operations309 206 518 443 
Less: Depreciation and amortization43 42 134 126 
Interest expense, net48 66 208 209 
Income tax expense (benefit)54 (23)(67)(22)
Restructuring costs, net (b)13 11 38 29 
Impairments (c)6 240 460 243 
Former parent legacy cost (d)1 1 1 1 
(Gain) loss on the early extinguishment of debt (d)0 (10)8 (5)
Net income (loss) from continuing operations attributable to Realogy Holdings and Realogy Group144 (121)(264)(138)
Net (loss) income from discontinued operations (e)(46)8 (114)(5)
Net income (loss) attributable to Realogy Holdings and Realogy Group$98 $(113)$(378)$(143)
11.SUBSEQUENT EVENTS
On October 23, 2017,_______________
(a)Includes the Company announced that Ryan Schneider has been elected as Presidentelimination of transactions between segments.
(b)The three months ended September 30, 2020 includes restructuring charges of $11 million at Realogy Brokerage Group and Chief Operating Officer$2 million at Corporate and Other.
The three months ended September 30, 2019 includes restructuring charges of $2 million at Realogy Franchise Group, $8 million at Realogy Brokerage Group and $1 million at Corporate and Other.
The nine months ended September 30, 2020 includes restructuring charges of $1 million at Realogy Franchise Group, $32 million at Realogy Brokerage Group, $3 million at Realogy Title Group and $2 million at Corporate and Other.
The nine months ended September 30, 2019 includes restructuring charges of $3 million at Realogy Franchise Group, $18 million at Realogy Brokerage Group, $2 million at Realogy Title Group and $6 million at Corporate and Other.
(c)Impairments for the Companythree months ended September 30, 2020 relate to lease asset impairments. Impairments for the nine months ended September 30, 2020 include a goodwill impairment charge of $413 million (which reduced the net carrying value of Realogy Brokerage Group by $314 million after accounting for the related income tax benefit of $99 million), an impairment charge of $30 million (which reduced the carrying value of trademarks at Realogy Franchise Group) and appointed as$17 million related to lease asset impairments.
Impairments for the three and nine months ended September 30, 2019 include a membergoodwill impairment charge of $237 million (which reduced the Company’s Boardnet carrying value of Directors.Realogy Brokerage Group by $180 million after accounting for the related income tax benefit of $57 million). In accordance withaddition, the succession plan developed bythree and nine months ended September 30, 2019 include other impairment charges primarily related to lease asset impairments of $3 million and $6 million, respectively.
(d)Former parent legacy items and (Gain) loss on the Board, Mr. Schneider is expected to be named Chief Executive Officer (the “CEO”) by December 31, 2017.early extinguishment of debt are recorded in Corporate and Other.
Upon(e)Includes estimated loss on the appointmentsale of Mr. Schneider as CEO on or before December 31, 2017, Richard Smith,discontinued operations, net of tax of $43 million and $97 million for the Company’s Chairmanthree and Chief Executive Officer, will retire from the Company and resign from the Board. The Company anticipates that Michael Williams, the Company’s Lead Independent Director, will be named Chairman of the Board upon the appointment of Mr. Schneider as CEO.
On October 23, 2017, the Company amended the employment agreement dated March 13, 2017 with Mr. Smith (the “Amended CEO Employment Agreement”). Under the Amended CEO Employment Agreement, Mr. Smith continues as the Company's CEO and Chairman of the Board until the earlier of (a) the Board appoints a new Chairman of the Board or a new CEO to assume these roles from Mr. Smith and (b) December 31, 2017 (the “Transition Date”). Upon the Transition Date, Mr. Smith’s employment with the Company will terminate and he will resign as an officer and director of the Company, which will be considered a termination by Mr. Smith with good reason under the terms of the Amended CEO Employment Agreement. As previously agreed under Mr. Smith's employment agreement, upon such a termination, subject to his continued compliance with his restrictive covenants and the execution and non-revocation of a release of claims, the Company will provide Mr. Smith with severance payments and benefits, including an amount equal to 2.4 times the sum of his annual base salary and target annual bonus, payable in 24 equal monthly installments (or $6 million).

nine months ended September 30, 2020, respectively.


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Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and accompanying notes thereto included elsewhere herein and with our Consolidated Financial Statements and accompanying notes included in the 20162019 Form 10-K. Unless otherwise noted, all dollar amounts in tables are in millions. Neither Realogy Holdings, the indirect parent of Realogy Group, nor Realogy Intermediate, the direct parent company of Realogy Group, conducts any operations other than with respect to its respective direct or indirect ownership of Realogy Group. As a result, the condensed consolidated financial positions, results of operations and cash flows of Realogy Holdings, Realogy Intermediate and Realogy Group are the same. This Management's Discussion and Analysis of Financial Condition and Results of Operations, containor MD&A, contains forward-looking statements. See "Forward-Looking Statements" in this report and "Forward-Looking Statements" and "Risk Factors" in this Quarterly Report as well as our 20162019 Form 10-K for a discussion of the uncertainties, risks and assumptions associated with these statements. Actual results may differ materially from those contained in any forward-looking statements.
OVERVIEW
We are a global provider of real estate and relocation services and report our operations in the following fourthree business segments:
•
Real Estate Franchise Services (known as Realogy Franchise Group or RFG)—franchises the Century 21®, Coldwell Banker®, Coldwell Banker Commercial®, ERA®, Sotheby's International Realty® and Better Homes and Gardens® Real Estate brand names. As of September 30, 2017,
•Realogy Franchise Group—franchises the Century 21®, Coldwell Banker®, Coldwell Banker Commercial®, Corcoran®, ERA®, Sotheby's International Realty® and Better Homes and Gardens® Real Estate brand names. As of September 30, 2020, our franchise systems had approximately 14,450 franchised and company owned offices and approximately 286,500 independent sales associates operating under our franchise and proprietary brands in the U.S. and 113 other countries and territories around the world, which included more than 780 of our company owned and operated brokerage offices with more than 50,000 independent sales associates.
Our wholly-owned subsidiary, ZapLabs LLC (which changed its name from ZipRealty LLC in 2016), is the developer of our proprietary technology platform for the real estate brokeragesfranchise systems and proprietary brands had approximately 318,000 independent sales associates in our franchise system as well as their customers. We believe the Zap technology platform will increase the value proposition to franchisees,agents worldwide, including approximately 189,000 independent sales associates and customers as well as improveagents operating in the productivity ofU.S. (which included approximately 52,400 company owned brokerage independent sales associates.agents). As of September 30, 2020, our real estate franchise systems and proprietary brands had approximately 19,500 offices worldwide in 115 countries and territories, including approximately 5,800 brokerage offices in the U.S. (which included approximately 680 company owned brokerage offices). Realogy Leads Group, which consists of Company- and client- directed affinity programs, broker-to-broker referrals and the Realogy Advantage Broker Network (previously referred to as the Cartus Broker Network) was consolidated in Realogy Franchise Group beginning in the first quarter of 2020 (see Note 10, "Segment Information", to the Condensed Consolidated Financial Statements for additional information).
•
Company Owned Real Estate Brokerage Services (known as NRT)—operates a full-service real estate brokerage business with more than 780 owned and operated brokerage offices with more than 50,000 independent sales associates principally under the Coldwell Banker®, Corcoran®, Sotheby’s International Realty®, ZipRealty® and Citi HabitatsSM brand names in more than 50 of the 100 largest metropolitan areas in the U.S. This segment also includes the Company's share of earnings for our PHH Home Loans venture, which is in the process of winding down as we transition to our new mortgage origination joint venture with Guaranteed Rate Affinity.
•
Relocation Services (known as Cartus®)—primarily offers clients employee relocation services such as homesale assistance, providing home equity advances to transferees (generally guaranteed by the individual's employer), home finding and other destination services, expense processing, relocation policy counseling and consulting services, arranging household goods moving services, coordinating visa and immigration support, intercultural and language training and group move management services. In addition, we provide home buying and selling assistance to members of affinity clients.
•Realogy Brokerage Group—operates a full-service real estate brokerage business with approximately 680 owned and operated brokerage offices with approximately 52,400 independent sales agents principally under the Coldwell Banker®, Corcoran® and Sotheby’s International Realty® brand names in many of the largest metropolitan areas in the U.S.
•Realogy Title and Settlement Services (known as Title Resource Group or TRG)—provides full-service title and settlement services to real estate companies, affinity groups, corporations and financial institutions with many of these services provided in connection with the Company's real estate brokerage and relocation services business. This segment also includes the Company's share of equity earnings including start-up costs,and losses for our Guaranteed Rate Affinity venture.
RECENT DEVELOPMENTS
Leadership Succession Plan
On October 23, 2017, the Company announced that Ryan Schneider has been named President and Chief Operating Officer of the Company and appointed to the Board of Directors. Mr. Schneider is expected to be named Chief Executive Officer of the Company by December 31, 2017. Upon the appointment of Mr. Schneider as CEO on or before December 31, 2017, Richard Smith, the Company’s Chairman and Chief Executive Officer, will retire from the Company. The Company anticipates that Michael Williams, the Company’s Lead Independent Director, will be named Chairman of the Board upon the appointment of Mr. Schneider as CEO.


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Strategic Initiatives
Our strategic initiatives are focused on affiliated independent sales associates, including targeted recruiting strategies, best-in-class retention practices, and organizational changes with new centers of excellence to enhance support for services such as marketing and education for affiliated independent sales associates. We believe that this refined strategic plan will manifest itself in a variety of ways, including improved lead generation, education and performance coaching and strengthened technology and marketing services, all of which are designed to increase the productivity of our existing independent sales associates and attract new independent sales associates.
Consistent with this strategy, NRT has been placing, and will continue to place, an even greater focus on the quality of our services, including the development of tools to increase sales associate productivity, and the use of financial incentives to strengthen our recruiting and retention of independent sales associates and teams. These actions include a focused strategy to recruit and retain high performing sales associates. In addition, there is an enhanced focus on the value proposition offered to independent sales associate teams. This strategic emphasis on recruitment and retention is driven by our overall goal to sustain or grow market share in various markets and ultimately improve the Company's overall profitability. While we have seen revenue improvements directly related to these initiatives, we have experienced and expect to continue to experience pressure on costs and margin from these initiatives.
Impact of Natural Disasters
In the third quarter of 2017, Hurricanes Harvey and Irma caused damage to residential and commercial property and infrastructure in Texas and Florida, which delayed the closing of homesale transactions. The hurricanes had an unfavorable impact on homesale transaction volume, title closing units and broker-to-broker referral fees during the third quarter of 2017 in the affected areas and are expected to have a similar unfavorable impact in the fourth quarter of 2017.
In October 2017, several catastrophic wildfires occurred in Northern California. We are assessing the impact of these wildfires, which we currently do not expect will have a material impact on our results of operations in the fourth quarter of 2017.
Although our segments operate in the affected regions as noted above, we did not incur significant damage to our office locations related to the hurricanes and have not incurred any significant damage to our office locations as a result of the wildfires and we believe we have adequate insurance coverage to protect our property losses.
New Mortgage Origination Joint Venture
On February 15, 2017, Realogy announced that it and Guaranteed Rate, Inc. (“Guaranteed Rate”) agreed to form a new mortgage origination joint venture, Guaranteed Rate Affinity, LLC ("Guaranteed Rate Affinity"), which began doingventure.
Our technology and data group pursues technology-enabled solutions to support our business in August 2017. In accordance with the asset purchase agreement, Guaranteed Rate Affinity is acquiring certain assets of the mortgage operations of PHH Home Loans, the existing joint venture between Realogysegments and PHH Mortgage Corporation, including its four regional centers and employees across the United States, but not its mortgage assets.
Following completion of the transactions under the asset purchase agreement, Guaranteed Rate Affinity will originate and market its mortgage lending services to Realogy’s real estate brokerage and relocation subsidiariesfranchisees as well as other real estate brokerageindependent sales agents affiliated with Realogy Brokerage and relocation companies across the country. Guaranteed Rate owns a controlling 50.1% stake of Guaranteed Rate AffinityFranchise Groups and Realogy owns 49.9%. Guaranteed Rate will have responsibility for the oversight of the officers and senior employees of Guaranteed Rate Affinity who are designated to manage Guaranteed Rate Affinity.
The asset purchase agreement and the movement of employees from the existing joint venture to the new joint venture is being completed in a series of five phases. The first two phases were completed in the third quarter of 2017 and in October the third phase was completed. The remaining two phases are expected to be completed in the fourth quarter of 2017. After giving effect to the establishment of Guaranteed Rate Affinity and the liquidation of Realogy's interest in PHH Home Loans in early 2018, the Company expects to realize net cash proceeds of approximately $20 million. There can be no assurance that all of the transactions contemplated by the asset purchase agreement will be consummated in a timely manner or at all or that the Company will receive the cash it expects from the wind down of the existing joint venture and the establishment of the new joint venture. The equity earnings related to Guaranteed Rate Affinity will be included in the financial results of our Title and Settlement Services segment.


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Return of Capital to Stockholders
During the third quarter of 2017, the Company repurchased and retired 1.8 million shares of common stock for $58 million at a weighted average market price of $33.83 per share. Since beginning the repurchase of the Company's common stock in February 2016, the Company has repurchased a total of 13 million shares at a weighted average market price of $29.07 per share through September 30, 2017. As of September 30, 2017, approximately $198 million of authorization remains available for the repurchase of shares under the February 2017 share repurchase program.
Repurchases under these programs may be made at management's discretion from time to time on the open market, pursuant to Rule 10b5-1 trading plans or privately negotiated transactions. The size and timing of these repurchases will depend on price, market and economic conditions, legal and contractual requirements and other factors. The repurchase programs have no time limit and may be suspended or discontinued at any time.
Refer to "Part II—Other Information, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds" for additional information on the Company's share repurchase programs.
During the third quarter of 2017, the Board declared and paid a quarterly cash dividend of $0.09 per share of the Company’s common stock.their customers.
CURRENT BUSINESS AND INDUSTRY TRENDS
According to the National Association of Realtors ("NAR"), during the firstthree months ended September 30, 2020, homesale transaction volume increased 23% primarily due to a 13% increase in the homesale transactions and a 9% increase in the average homesale price. During the nine months of 2017,ended September 30, 2020, according to NAR, homesale transaction volume increased 6% due to a 5%6% increase in the average homesale price and a 1% increase in the number offlat homesale transactions. The higher increase in the average homesale price relative to the increase in homesale transactions is a function of high demand against a limited supply of homes for sale. RFG and NRT homesale
Homesale transaction volume on a combined basis for Realogy Franchise and Brokerage Groups increased 7% in28% during the first ninethree months ended September 30, 2020 compared to the three months ended September 30, 2019. Homesale transaction volume at Realogy Franchise Group increased 31% during such period, primarily as a result of 2017. NRT experienced a 2% increase in existing homesale transactions and a 6%17% increase in average homesale price while RFG experiencedand a 1%12% increase in existing homesale transactionstransactions. Homesale transaction volume at Realogy Brokerage Group increased 22% during such period, primarily as a result of an 11% increase in average homesale price and a 10% increase in existing homesale transactions.

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Homesale transaction volume on a combined basis for Realogy Franchise and Brokerage Groups increased 3% during the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019. Homesale transaction volume at Realogy Franchise Group increased 6% during such period, as a result of a 9% increase in average homesale price, partially offset by a 3% decrease in existing homesale transactions. Homesale transaction volume at Realogy Brokerage Group decreased 2% during such period, as a result of a 5% decrease in existing homesale transactions, partially offset by a 3% increase in average homesale price.
Recruitment and retentionThe table below shows the trend of independent sales associates and independent sales associate teams are criticalhomesale transaction volume from January to September 2020 compared to the businessprior year and financial resultsreflects the negative impact of COVID-19 starting in the final weeks of the first quarter of 2020 and recovery late in the second quarter of 2020.
rlgy-20200930_g1.jpg
COVID-19 Crisis. A strong recovery in the residential real estate market began late in the second quarter of 2020, following a brokerage,period of sharp decline in homesale transactions starting in the final weeks of the first quarter of 2020. We attribute the recovery to date to a favorable mortgage rate environment, low inventory contributing to higher average homesale price, and increased demand as the quarantine restrictions in place in many states have begun to be relaxed. In addition, we have observed growing strength in certain trends that we believe are largely driven by behavioral changes related to the COVID-19 crisis, including home buyer preferences for certain geographies, including suburban locations and attractive tax and weather destinations and second home purchases.
During the second quarter of 2020, our company owned brokerages were negatively impacted by steeper declines in closed transactions in densely populated areas, such as California and those operated by our affiliated franchisees. Competitionthe New York metropolitan area (geographies which also have an average sales price much higher than the U.S. average), as well as from lower inventory in the high-end markets, resulting in lower homesale transaction volume for independent sales associatescompany owned brokerages compared to franchised brokerages due to geographic and high-end market concentration. These geographies showed positive growth in our industry, including within our franchise system, is high,September 2020; however, throughout the third quarter, the recovery trajectory in particular with respectthe New York metropolitan area continued to more productive sales associates. Most of a brokerage'smeaningfully lag the general residential real estate listings are sourced throughmarket, which continued to impact homesale transaction volume at our company-owned brokerages as compared to franchised brokerages. Although inventory across all price points continues to be constrained, limited inventory in the spherehigh-end did not materially impact results at our company owned brokerages in the third quarter of influence of their independent sales associates, notwithstanding the growing influence of internet-generated leads. Competition for independent sales associates is generally subject to numerous factors, including remuneration (such as sales commission percentage and other financial incentives paid to independent sales associates), other expenses of independent sales associates, leads or business opportunities generated for the independent sales associate from the brokerage, independent sales associates' perception of the value of the broker's brand affiliation, marketing and advertising efforts by the brokerage, the office manager, staff and fellow independent sales associates with whom they collaborate daily and technology, continuing professional education, and other services provided by the brokerage.2020. We believe that the influence of independent sales associates and independent sales associate teams has increasedincrease in average homesale price at Realogy Franchise Group as compared to the broader market during the past five years2020 third quarter was primarily driven by particularly strong performance in the high-end of the market by one of our franchised brands.

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In mid-March 2020, we began taking a series of proactive cost-saving measures in reaction to the evolving COVID-19 crisis, including salary reductions, furloughs and together withreductions in marketing and other spending which resulted in substantial cost-savings in the increasing competition from other brokerages, hassecond quarter of 2020 to partially offset the decline in revenues. While these temporary cost-saving measures resulted in cost savings in the second and third quarters of 2020, almost all of such measures were reversed during the third quarter of 2020 based upon the significant improvement in the volume of homesale transactions and ongoing business needs.
There remain significant uncertainties regarding the COVID-19 crisis, including the severity, duration and extent of the pandemic. Our business could be negatively impacted if the recruitmentcrisis, including adverse economic consequences of the crisis, worsen, if directives and retentionmandates requiring businesses to again curtail or cease normal operations are reinstated, if mortgage rates rise, or if housing inventory constraints, across geographies and price point, limit homesale transaction growth. These negative impacts may be more pronounced in future periods and could have a material adverse effect on our results of independent sales associatesoperations and put pressure on commissionliquidity.
Inventory. Continued or accelerated declines in inventory, whether attributable to the COVID-19 crisis or otherwise, may result in insufficient supply to meet any increased demand driven by the lower interest rate splits.environment. Even before the COVID-19 crisis, low housing inventory levels had been an industry-wide concern, in particular in certain highly sought-after geographies and at lower price points. According to NAR, the inventory of existing homes for sale in the U.S. decreased approximately 19% from 1.82 million as of September 2019 to 1.47 million as of September 2020. As a result, inventory has decreased from 4.0 months of supply in September 2019 to 2.7 months as of September 2020. These factors may also put pressure on RFG's net effective royalty rate as the economics for agents and agent teams change. At NRT, welevels continue to focus on our growth initiatives, specifically our recruiting programsbe significantly below the 10-year average of 5.4 months, the 15-year average of 6.1 months and the focus25-year average of 5.7 months. While insufficient inventory levels generally have a negative impact on strengtheninghomesale transaction growth, during the sales agent value proposition.three months ended September 30, 2020, Realogy Franchise and Brokerage Groups saw a 12% increase in homesale transactions on a combined basis compared to September 30, 2019. We believe that during the third quarter of 2020, the intensified pace of inventory supply turnover contributed to the reported low levels of inventory, without a correlating decrease in homesale transactions. For example, at our company owned Coldwell Banker brokerages, the speed at which a home that was listed for sale went under contract reduced to a median of 19 days on the market in the third quarter of 2020 from a median of 31 days on the market in the third quarter of 2019. There is significant uncertainty as to whether the pattern seen in the third quarter of 2020 of low inventory, but increased homesale transactions driven by supply turnover will continue as constraints in home inventory levels have typically had and may continue to have an adverse impact on the number of homesale transactions closed by Realogy Franchise and Brokerage Groups.
Unemployment. Following the onset of the pandemic, many companies announced reductions in work weeks and salaries, although many people have recently returned to the labor market following weeks or months of COVID-19 induced restrictions. According to the U.S. Bureau of Labor Statistics, while the U.S. unemployment rate declined to 7.9% in September 2020, easing from a high of 14.7% reached in April 2020, this jobless rate still represents a 4.4% increase compared to February 2020. If the COVID-19 pandemic continues to impact employment levels and economic activity for a substantial period, or if jobs recovery continues to slow or worsens, it could lead to an increase in loan defaults and foreclosure activity and may make it more difficult for potential home buyers to arrange financing.
Mortgage Rates. A wide variety of factors can contribute to mortgage rates, including federal interest rates, demand, consumer income, unemployment levels and foreclosure rates. Yields on the 10-year Treasury note hit all-time lows during the COVID-19 crisis and as of September 30, 2020 were 0.69% as compared to 1.68% as of September 30, 2019. In addition, the Federal Reserve Board cut the interest rate two times, dropping its benchmark interest rate to a range of 0% to 0.25% on March 15, 2020. According to Freddie Mac, mortgage rates on commitments for a 30-year, conventional, fixed-rate first mortgage lowered to an average of 2.95% for the third quarter of 2020 compared to 3.67% for the third quarter of 2019. On September 30, 2020, mortgage rates were 2.89%, according to Freddie Mac.
Our financial results are favorably impacted by a low interest rate environment as a decline in mortgage rates generally drives increased refinancing activity and homesale transactions. For example, the Company recorded equity earnings from our mortgage origination joint venture, Guaranteed Rate Affinity, of $95 million and $12 million for the nine months ended September 30, 2020 and 2019 which represented approximately 18% of the Company's Operating EBITDA for the nine months ended September 30, 2020 (as compared to 3% of the Company's Operating EBITDA for the nine months ended September 30, 2019). Realogy Title Group also experienced a 159% increase in the number of title and closing units processed as a result of homeowners refinancing their home loans for the nine months ended September 30, 2020 as compared to the prior year period. The new targeted recruiting initiatives that we introduced in late 2016 have enabled us to mitigate prior declinesrefinancing volume of these businesses are inherently cyclical and this level of volume may not be maintained or may meaningfully decrease with fluctuations in market share throughconditions such as mortgage rates.

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Due to the economic effects of the COVID-19 crisis, banks may tighten mortgage standards, even as rates decline, which could limit the availability of mortgage financing. In addition, many individuals and businesses have benefited and may be continuing to benefit from one or more federal and/or state monetary or fiscal programs meant to assist in the navigation of high performing NRT independent sales associates. While these recruitingCOVID-related financial challenges, and retention initiativesthe termination or substantial curtailment of, or failure to extend, such programs could have increased our commission expense,a negative impact on their financial health. Increases in mortgage rates adversely impact housing affordability and we expect these initiatives will improve our operating results over the longer termhave been and will continue to positively impact our market share trend.could again be negatively impacted by a rising interest rate environment.
AsAffordability. The fixed housing affordability index, as reported by NAR, thewas consistent year-over-year at 160 for August 2019 and 159 for August 2020. A housing affordability index has continued to be at historically favorable levels, despite the increases in the average homesale price over the past several years. An index above 100 signifies that a family earning the median income has sufficient income to purchase a median-priced home, assuming a 20 percent down payment and ability to qualify for a mortgage. The composite housingHousing affordability index was 150 for August 2017may be impacted in future periods by increases in average homesale price and 165 for 2016. The housing affordability index remains significantly higher than the averagelow inventory environment as well as the rise in unemployment and economic challenges as a result of 127the COVID-19 crisis, but we are unable to estimate the extent due to the uncertainties of the COVID-19 crisis and its related impact on the U.S. economy.
Recruitment and Retention of Independent Sales Agents; Commission Income. Recruitment and retention of independent sales agents and independent sales agent teams are critical to the business and financial results of a brokerage, including our company owned brokerages and those operated by our affiliated franchisees. Aggressive competition for the periodaffiliation of independent sales agents has negatively impacted recruitment and retention efforts at both Realogy Franchise and Brokerage Groups, in particular with respect to more productive sales agents, and drove a loss in our market share for 2019 compared to 2018. This competitive environment has continued despite general business disruption due to the COVID-19 crisis.
We believe that a variety of factors in recent years have driven intensifying recruitment and retention tactics for independent sales agents in the industry and has increasingly impacted our recruitment and retention of top producing agents. Such factors include increasing competition, increasing levels of commissions paid to agents (including up-front payments and equity), changes in the spending patterns of independent sales agents (as more independent sales agents purchase services from 1970 through 2016.
According to Freddie Mac, mortgage ratesthird-parties outside of their affiliated broker), a heightening focus on commitmentsleads or business opportunities generated for a 30-year, conventional, fixed-rate first mortgages averaged 3.7% for 2016the independent sales agent from the brokerage, differentiation in the bundling of agent services or industry offerings (including non-traditional offerings), and the rate at September 30, 2017 was 3.8%. Although mortgage rates have increased 30 basis pointsgrowth in independent sales agent teams.
In addition, industry competition for independent sales agents has been and is expected to 3.8% as of September 30, 2017 from 3.5% as of September 2016, they continue to be at low levelsfurther complicated by historicalcompetitive models that do not prioritize traditional business objectives. For example, we believe that certain owned-brokerage competitors have investors that have historically allowed the pursuit of increases in market share over profitability, which not only exacerbates competition for independent sales agents, but places additional pressure on the share of commission income received by the agent.

Competition for productive agents is expected to continue to have a negative impact on our homesale transaction volume and to put upward pressure on the average share of commissions earned by independent sales agents and may have a negative impact on our market share. These competitive market factors also impact our franchisees and such franchisees have and may continue to seek reduced royalty fee arrangements or other incentives from us to offset the continued business pressures on such franchisees, which would result in a reduction in royalty fees paid to us.
Non-Traditional Market Participants. While real estate brokers using historical real estate brokerage models typically compete for business primarily on the basis of services offered, brokerage commission, reputation, utilization of technology and personal contacts, participants pursuing non-traditional methods of marketing real estate may compete in other ways, including companies that employ technologies intended to disrupt historical real estate brokerage models or minimize or eliminate the role traditional brokers and sales agents perform in the homesale transaction process.
A growing number of companies are competing in non-traditional ways for a portion of the gross commission income generated by homesale transactions. For example, many iBuying business models seek to disintermediate real estate brokers and independent sales agents from buyers and sellers of homes by reducing or eliminating brokerage commissions that may be earned on those transactions. In October 2020, we continued to evolve our agent-focused iBuying offerings through the launch of a joint venture with Home Partners of America intended to expand the geographic reach of our RealSure program, which has been available in pilot form in 10 U.S. markets. Under the RealSure Sell program, sellers with qualifying properties receive a cash offer valid for 45 days immediately upon listing, and during this time frame have the opportunity to pursue a better price by marketing their property with an affiliated independent sales agent. Sellers who are enrolled in


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RealSure Sell can utilize RealSure Buy to make a more competitive offer on their next home before their current home is sold by leveraging their RealSure Sell cash offer.
standards. While this increase adversely impacts housing affordability, we believeIn addition, the concentration and market power of the top listing aggregators allow them to monetize their platforms by a variety of actions, including expanding into the brokerage business, charging significant referral fees, charging listing and display fees, diluting the relationship between agents and brokers (and between agents and the consumer), tying referrals to use of their products, consolidating and leveraging data, and engaging in preferential or exclusionary practices to favor or disfavor other industry participants. These actions divert and reduce the earnings of other industry participants, including our company owned and franchised brokerages. Aggregators could intensify their current business tactics or introduce new programs that rising wages, improving consumer confidencecould be materially disadvantageous to our business and a continuation of low inventory levels for the mainstream housing market will result in continued favorable demand conditions and existing homesale volume growth. To the extent that mortgage rates increase, consumers continue to have financing alternatives such as adjustable rate mortgages or shorter term mortgages which can be utilized to obtain a lower mortgage rate than a 30-year fixed-rate mortgage.
Partially offsetting the positive impact of historically favorable affordability and mortgage rates are low housing inventory levels, which have been in decline over the past several years. According to NAR, the inventory of existing homes for saleother brokerage participants in the U.S. was 1.9 millionindustry and 2.0 million atsuch tactics could further increase pressures on the endprofitability of September 2017our company owned and September 2016, respectively. The September 2017 inventory representsfranchised brokerages and affiliated independent sales agents, reduce our franchisor service revenue and dilute our relationships with our franchisees and our and our franchisees' relationships with affiliated independent sales agents and buyers and sellers of homes. For example, one dominant listing aggregator recently announced its intention to launch a national average supplybrokerage with employee sales agents in several locations to support its iBuying offering. It also announced that it expects to join local multiple listing services, known as MLSs, as a participating broker to gain electronic access directly to real estate listings rather than relying on disparate electronic feeds from other brokers participating in the MLSs or MLS syndication feeds.
New Development. Realogy Brokerage Group has relationships with developers, primarily in major cities, in particular New York City, to provide marketing and brokerage services in new developments. New development closings can vary significantly from year to year due to timing matters that are outside of 4.2 months atour control, including long cycle times and irregular project completion timing. In addition, the current homesales pace which is significantly belownew development industry has also experienced significant disruption due to the 6.1 month 25-year average as of December 31, 2016. The national average supply at the then-current homesales pace for September 2016, 2015 and 2014 was 4.5 months, 4.8 months and 5.4 months, respectively.
Additional offsetting factors include the ongoing rise in home prices, conservative mortgage underwriting standards and certain homeowners having limited or negative equity in homes. Mortgage credit conditions tightened significantly during the recent housing downturn, with banks limiting credit availabilityCOVID-19 crisis. Accordingly, earnings attributable to more creditworthy borrowers and requiring larger down payments, stricter appraisal standards, and more extensive mortgage documentation. Although mortgage credit conditions appearthis business can fluctuate meaningfully from year to be easing, mortgages remain less available to some borrowers and it frequently takes longer to close ayear, impacting both homesale transaction due to current mortgagevolume and underwriting requirements.the share of gross commission income we realize on such transactions.


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Existing Homesales
AccordingFor the nine months ended September 30, 2020 compared to the same period in 2019, NAR existing homesale transactions for 2016 increased to 5.5remained flat at 4 million homes, or up 4%, compared to 2015, while homesale transactions increased 2% on a combined basis for RFG and NRT.
homes. For the quartersnine months ended March 31, 2017, June 30, 2017 and September 30, 2017, compared to the same periods in 2016, NAR existing homesale transactions were 1.1 million, 1.6 million and 1.5 million homes, or up 5%, up 2% and down 2%, respectively. For the periods above, RFG and NRT2020, homesale transactions on a combined basis increased 3%, increased 1%for Realogy Franchise and Brokerage Groups decreased 1%, respectively,4% compared to the same periodsperiod in 2016. 2019 due primarily to the impact of the COVID-19 crisis on second quarter homesale transaction volume, the impact of competition (including on our market share), the loss of certain franchisees and the geographic concentration of Realogy Brokerage Group.
During the first ninethree months of the year, the number ofended September 30, 2020, NAR's existing homesale transactions for RFGincreased 13% as compared to an increase in homesale transactions of 12% at Realogy Franchise Group and NRT has continued to be challenged by inventory constraints, however for NRT there has been10% at Realogy Brokerage Group (for an increase of 12% on a shift from stabilization to growth in the high end of the housing market.combined basis). The annualquarterly and quarterlyannual year-over-year trends in homesale transactions are as follows:
   2017 vs. 2016 
Number of Existing HomesalesFull Year
2016 vs.
2015		 First
Quarter		 Second
Quarter		 Third
Quarter		 Fourth
Quarter
Forecast		 Full Year
Forecast
2017 vs. 2016		 
Industry            
NAR4 %(a)5%(a)2%(a)(2%)(a)(4%)(b)—%(b)
Fannie Mae (c)4 % 5% 2% (2%) (5%) —% 
Realogy            
RFG and NRT Combined2 % 3% 1% (1%)     
RFG3 % 3% 1% (1%)     
NRT— % 4% 3% —%     
rlgy-20200930_g2.jpg

rlgy-20200930_g3.jpg
_______________
(a)Historical existing homesale data is as of the most recent NAR press release, which is subject to sampling error.
(b)Forecasted existing homesale data, on a seasonally adjusted basis, is as of the most recent NAR forecast.
(c)Forecasted existing homesale data, on a seasonally adjusted basis, is as of the most recent Fannie Mae press release.
(a)Q1, Q2 and Q3 existing homesale data is as of the most recent NAR press release, which is subject to sampling error.
(b)Forecasted existing homesale data, on a seasonally adjusted basis, is as of the most recent NAR forecast.
(c)Forecasted existing homesale data, on a seasonally adjusted basis, is as of the most recent Fannie Mae press release.
As of their most recent releases, NAR is forecasting existing homesaleshomesale transactions to increase 7%9% in 20182021 while Fannie Mae is forecasting an increase in existing homesale transactions to increase 1% for the same period.

41
Table of 2% in 2018.Contents
Existing Homesale Price
In 2016,For the nine months ended September 30, 2020 compared to the same period in 2019, NAR existing homesale average price increased 4% compared to the same period in 2015, while average homesale price increased 2% on a combined basis for RFG and NRT.


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6%. For the quartersnine months ended March 31, 2017, June 30, 2017 and September 30, 2017, compared to the same periods in 2016, NAR existing homesale average price increased 5%, 5% and 4%, respectively. For the periods above, RFG and NRT2020, average homesale price on a combined basis for Realogy Franchise and Brokerage Groups increased 5%, 7%, and 6%, respectively, compared to the same periodsperiod in 2016. The combined2019.
During the three months ended September 30, 2020, NAR's existing homesale average price increased 9% as compared to an average homesale price increase of 17% at Realogy Franchise Group and 11% at Realogy Brokerage Group (for an increase of 14% on a combined basis). We believe that the delta between Realogy Brokerage Group and Realogy Franchise Group in the 2020 third quarter was due toprimarily driven by Realogy Brokerage Group's geographic concentration in the increaseNew York metropolitan area. We believe that the delta between Realogy Franchise Group and NAR in homesale transactions at the high end2020 third quarter was primarily driven by particularly strong performance by one of Realogy Franchise Group's brands in the high-end of the markets served by NRTmarket. The quarterly and RFG. Both RFG and NRT homesale price also improved as a result of increased demand due to the continuation of constrained inventory levels. The annual and quarterly year-over-year trends in the price of homes are as follows:
   2017 vs. 2016 
Price of Existing HomesFull Year
2016 vs.
2015		 First
Quarter		 Second
Quarter		 Third
Quarter		 Fourth
Quarter
Forecast		 Full Year
Forecast
2017 vs. 2016		 
Industry            
NAR4 %(a)5%(a)5%(a)4%(a)5%(b)6%(b)
Fannie Mae (c)5 % 7% 6% 6% 6% 6% 
Realogy            
RFG and NRT Combined2 % 5% 7% 6%     
RFG3 % 6% 6% 6%     
NRT— % 3% 9% 4%     
rlgy-20200930_g4.jpg
rlgy-20200930_g5.jpg_______________
(a)Historical homesale price data is for existing homesale average price and is as of the most recent NAR press release.
(b)Forecasted homesale price data is for median price and is as of the most recent NAR forecast.
(c)Existing homesale price data is for median price and is as of the most recent Fannie Mae press release.
(a)Q1, Q2 and Q3 homesale price data is for existing homesale average price and is as of the most recent NAR press release.
(b)Forecasted homesale price data is for median price and is as of the most recent NAR forecast.
(c)Existing homesale price data is for median price and is as of the most recent Fannie Mae press release.
As of their most recent releases, NAR and Fannie Mae are both forecasting an increase in median existing homesale price to increase 4% in 2021.

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Table of 5% in 2018 compared to 2017.Contents
* * *
We believe that long-term demand for housing and the growth of our industry are primarily driven by the affordability of housing, the economic health of the U.S. economy, demographic trends such as population growth, the increasegenerational transitions, increases in U.S. household formation, mortgage rate levels and mortgage availability, certain tax benefits, job growth, increases in renters that qualify as homebuyers, the inherent attributes of homeownership versus renting and the influenceavailability of local housing dynamics of supply versus demand.inventory in the consumer's desired location and within the consumer's price range. At this time, mostcertain of these factors are generally trending favorably.favorably, such as mortgage rate levels and household formation, although the COVID-19 pandemic continues to materially impact the entire industry and the global economy. Factors that may negatively affect continued growth in the housing industry include:
higher mortgage rates due•the extent, duration and severity of the COVID-19 pandemic and the economic consequences stemming from the COVID-19 crisis, including continued economic contraction or the failure of a recovery to increases in long-term interest ratesbe sustained as well as reduced availabilityrelated risks such as governmental regulation (including those that preclude or strictly limit showings of mortgage financing;properties), changes in patterns of commerce or consumer activities and changes in consumer attitudes;
•intensifying or continuing economic contraction in the U.S. economy including the impact of recessions, slow economic growth, or a deterioration in other economic factors (including potential consumer, business or governmental defaults or delinquencies due to the COVID-19 crisis or otherwise);
•continued insufficientlow or accelerated declines in home inventory levels or stagnant and/or declining home prices;
•continued high levels of unemployment and/or declining wages or stagnant wage growth in the U.S.;
•the termination or substantial curtailment of, or failure to extend, one or more federal and/or state monetary or fiscal programs meant to assist businesses and lack of building of new housing leading to lower unit sales;individuals navigate COVID-19 related financial challenges;
changing attitudes towards home ownership, particularly among potential first-time homebuyers who may delay, •decreasing consumer confidence in the economy and/or decide not to, purchase homes;the residential real estate market;
•an increase in potential homebuyers with a low credit ratingratings or inability to afford down payments;
•reduced availability of mortgage financing or increasing down payment requirements or other mortgage challenges due to disrupted earnings;
•weak capital, credit and financial markets and/or the impactinstability of limited or negative equity of current homeowners, as well asfinancial institutions;
•an increase in foreclosure activity;
•a reduction in the lack of available inventory may limit their proclivity to purchase an alternative home;
reduced affordability of homes;homes, including in connection with rising home prices;
economic stagnation or contraction•increases in mortgage rates;
•certain provisions of the U.S. economy;
a decline in2017 Tax Act that directly impact traditional incentives associated with home ownership levels inand may reduce the U.S.;
geopoliticalfinancial distinction between renting and economic instability; and
legislative or regulatory reform,owning a home, including but not limited to reformthose that adversely impacts the financing of the U.S. housing market or amends the Internal Revenue Code in a manner that negatively impacts home ownership such as reform that reducesreduce the amount that certain taxpayers would be allowed to deduct for home mortgage interest or state, local and property taxes.taxes;

•state or local tax reform, such as the "mansion tax" in New York City;
•decelerated or lack of building of new housing for homesales, increased building of new rental properties, or irregular timing of new development closings leading to lower home sales at Realogy Brokerage Group, which has relationships with developers, primarily in major cities, to provide marketing and brokerage services in new developments;
•geopolitical and economic instability, including uncertainty around the 2020 U.S. election;
•homeowners retaining their homes for longer periods of time;
•a decline in home ownership levels in the U.S., including as a result of changing attitudes towards home ownership, particularly among potential first-time homebuyers who may delay, or decide not to, purchase a home, limits on the proclivity of home owners to purchase an alternative home due to constrained inventory, or changes in preferences to rent versus purchase a home;
•natural disasters, such as hurricanes, earthquakes, wildfires, mudslides and other events that disrupt local or regional real estate markets, including public health crises, such as pandemics and epidemics; and
•other legislative or regulatory reforms, including but not limited to reform that adversely impacts the financing of the U.S. housing market, changes relating to RESPA, potential reform of Fannie Mae and Freddie Mac, immigration reform, and further potential federal, state or local tax code reform (including, for example, the proposed "pied-a-terre tax" in New York City).


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Many of the trends impacting our businesses that derive revenue from homesales also impact Cartus whichRelocation Services is a global provider of outsourced employee relocation services. In addition toimpacted by these general residential housing trends key drivers of Cartus areas well as global corporate spending on relocation services which has not returned(which continue to levels that existed priorshift to the most recent recessionlower cost relocation benefits as corporate clients engage in cost reduction initiatives and/or restructuring programs) and changes in employment relocation trends. Cartus is subject to a competitive pricing environment and lower average revenue per relocation as a result of a shift in the mix of services and number of services being delivered per move. These factors have, and may continue to, put pressure on the growth and profitability of this segment.
* * *
While data provided by NAR and Fannie Mae are two indicators of the direction of the residential housing market, we believe that homesale statistics will continue to vary between us and NAR and Fannie Mae because:
•they use survey data and estimates in their historical reports and forecasting models, which are subject to sampling error, whereas we use data based on actual reported results;
•there are geographical differences and concentrations in the markets in which we operate versus the national market. For example, many of our company owned brokerage offices are geographically located where average homesale prices are generally higher than the national average and therefore NAR survey data will not correlate with NRT'sRealogy Brokerage Group's results;
•comparability is also impaireddiminished due to NAR’s utilization of seasonally adjusted annualized rates whereas we report actual period-over-period changes and their use of median price for their forecasts compared to our average price;
•NAR historical data is subject to periodic review and revision and these revisions have been material in the past, and could be material in the future; and
•NAR and Fannie Mae generally update their forecasts on a monthly basis and a subsequent forecast may change materially from a forecast that was previously issued.
While we believe that the industry data presented herein is derived from the most widely recognized sources for reporting U.S. residential housing market statistical data, we do not endorse or suggest reliance on this data alone.  We also note that forecasts are inherently uncertain or speculative in nature and actual results for any period could materially differ. 
KEY DRIVERS OF OUR BUSINESSES
Within RFGRealogy Franchise and NRT,Brokerage Groups, we measure operating performance using the following key operating statistics:metrics: (i) closed homesale sides, which represents either the "buy" side or the "sell" side of a homesale transaction, (ii) average homesale price, which represents the average selling price of closed homesale transactions, and (iii) average homesale broker commission rate, which represents the average commission rate earned on either the "buy" side or "sell" side of a homesale transaction.
For RFG,Realogy Franchise Group, we also use net effective royalty rateper side, which represents the average percentage of our franchisees’ commission revenues payableroyalty payment to RFG, net of volume incentives achieved.
Since 2014 we have experienced approximately a one basis point decline in theRealogy Franchise Group for each homesale transaction side taking into account royalty rates, average broker commission rate each yearrates, volume incentives achieved and we expect that overother incentives. We utilize net royalty per side as it includes the long term the average brokerage commission rates will continue to modestly decline as a resultimpact of increaseschanges in average homesale prices and, to a lesser extent, competitors providing fewer services for a reduced fee. Continuing growth in the housing market should result in an increase in our revenues, although such increases could be offset by modestly declining brokerage commission rates and competitive pressures.
In general, most of our third-party franchisees are entitled to volume incentives, which are calculated for each franchisee as a progressive percentage of each franchisee's annual gross income.  These incentives decrease during times of declining homesale transaction volumes and increase when there is a corresponding increase in homesale transaction volume.  In addition, several of our larger franchisees have a flat royalty rate. If our top franchisees, who earn higher volume incentives or have a flat royalty rate, continue to grow faster than the majority of our other franchisees, the Company's net effective royalty rate will continue to modestly decline.
Royalty fees are charged to all franchisees pursuant to the terms of the relevant franchise agreements and are included in each of the real estate brands' franchise disclosure documents. Non-standard incentives may be used as consideration for new or renewing franchisees. Most of our franchisees do not receive these non-standard incentives and in contrast to royalties and volume incentives, they are not homesale transaction based. We have accordingly excluded the non-standard incentives from the calculation of the net effective royalty rate. Had these non-standard incentives been included, the net effective royalty rate would be lower by approximately 23 and 21 basis points for the years ended December 31, 2016 and


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2015, respectively. We expect that the trend of increasing non-standard incentives by approximately 3 to 4 basis points a year will continue in the future in order to attract and retain certain large franchisees.
NRT has a significant concentration of real estate brokerage offices and transactions in geographic regions where home prices are at the higher end of the U.S. real estate market, particularly the east and west coasts, while RFG has franchised offices that are more widely dispersed across the United States. Accordingly, operating results and homesale statistics may differ between NRT and RFG based upon geographic presence and the corresponding homesale activity in each geographic region. In addition, the share of commissions earned by sales associates directly impacts the margin earned by NRT. Such share of commissions earned by sales associates varies by region and commission schedules are generally progressive to incentivize sales associates to achieve higher levels of production. We expect that they will continue to be subject to upward pressure because of the increased bargaining power of independent sales associates and teamsprice as well as more aggressive recruitmentall incentives and represents the royalty revenue impact of each incremental side.
For Realogy Brokerage Group, we also use gross commission income per side, which represents gross commission income divided by closed homesale sides. Gross commission income includes commissions earned in homesale transactions and certain other activities, taken by our competitors.
As described above under "Current Industry Trends," competition for independent sales associates in our industry has intensified and we expect this competition will continue particularly with respectprimarily leasing transactions. Realogy Brokerage Group, as a franchisee of Realogy Franchise Group, pays a royalty fee of approximately 6% per transaction to more productive independent sales associates which has impacted NRT's market share and results of operations, as well as RFG toRealogy Franchise Group from the commission earned on a lesser extent.  Currently, there are several different compensation models being utilized by real estate brokerages to compensate their independent sales associates.transaction. The most common models are as follows: (1) a graduatedremainder of gross commission plan, sometimes referred to asincome is split between the "traditional model" wherebroker (Realogy Brokerage Group) and the independent sales associate receives a percentage ofagent in accordance with their applicable independent contractor agreement (which specifies the brokerage commission that increases as the independent sales associate increases his or her volume of homesale transactions and the brokerage frequently provides independent sales associates with a broad set of support offerings and promotion of properties, (2) a desk rental or 100% plan, where the independent sales associate is entitled to all or nearly allportion of the broker commission and pays the broker on both a monthly and transaction basis for office space, tools, technology and support while also being responsible for the promotion of properties and other items, (3) a capped model, which generally blends aspects of the first two models described herein, and (4) a fixed transaction fee model where the sales associate is entitled to all of the broker commission and pays a fixed fee per homesale transaction and often receives very limited support from the brokerage. Most brokerages focus primarily on one compensation model though some may offer one or more of these models to their sales associates. Increasingly, independent sales associates have affiliated with brokerages that offer fewer servicesbe paid to the independent sales associates, allowing the independent sales associate to retain a greater percentage of the commission. However, there are long-term trade-offs in the level of support independent sales associates receive in areas such as marketing, technology and professional education.
While NRT has historically compensated its independent sales associates using a traditional model, utilizing elements of other models depending upon the geographic market, we are placing an even greater focus on the quality of our services and use of financial incentives to strengthen our recruiting and retention of independent sales associates and teams. These actions include a more aggressive strategy to recruit and retain high performing sales associates. In addition, there is an enhanced focus on the value proposition offered to independent sales associate teams. This strategic emphasis on recruitment and retention is drivenagent), which varies by our overall goal to sustain or grow market share in various markets and ultimately improve the Company's overall profitability. While we have seen revenue improvements directly related to these initiatives, we have experienced and expect to continue to experience pressure on costs and margin from these initiatives.
Within Cartus, we measure operating performance using the following key operating statistics: (i) initiations,agent agreement, which represent the total number of new transferees and the total number of real estate closings for affinity members and (ii) referrals, which represent the number of referrals from which we earn revenue from real estate brokers.varies by agent.
In TRG,Realogy Title Group, operating performance is evaluated using the following key metrics: (i) purchase title and closing units, which represent the number of title and closing units we process as a result of home purchases, (ii) refinance title and closing units, which represent the number of title and closing units we process as a result of homeowners refinancing their home loans, and (iii) average fee per closing unit, which represents the average fee we earn on purchase title and refinancing title sides. Results are favorably impacted by the low mortgage rate environment. An increase or decrease in homesale transactions will impact the financial results of TRG;Realogy Title Group; however, thetheir financial results are not significantly impacted by a change in homesale price. In addition,

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Realogy Leads Group, which consists of Company- and client- directed affinity programs, broker-to-broker referrals and the average mortgage rate increasedRealogy Advantage Broker Network (previously referred to as the Cartus Broker Network) was consolidated into Realogy Franchise Group during the first quarter of 2020.
For the three months ended September 30, 2020, Cartus Relocation Services had 15,097 initiations as compared to 21,020 initiations during the same period in 2019. Cartus Relocation Services earned referral fee revenue from approximately 3,417 referrals for the three months ended September 30, 2020 as compared to 4,698 referrals during the same period of 2019. For the nine months ended September 30, 2020, Cartus Relocation Services had 60,713 initiations as compared to 80,331 initiations during the same period of 2019. Cartus Relocation Services earned referral fee revenue from approximately 9,005 referrals for the nine months ended September 30, 2020 as compared to 11,808 referrals during the same period of 2019. Cartus Relocation Services experienced a decline in new initiations attributable to the COVID-19 pandemic in the fourth quartersecond and third quarters of 20162020 and refinancing transactions have decreasedthis trend is expected to continue.
The following table presents our drivers for the three and nine months ended September 30, 2020 and 2019. See "Results of Operations" below for a discussion as a result. We believe that a further increase in mortgage rates into how these drivers affected our business for the future will most likely have a negative impact on refinancing title and closing units.periods presented.
Three Months Ended September 30,Nine Months Ended September 30,
20202019% Change20202019% Change
Realogy Franchise Group (a)
Closed homesale sides336,737 299,937 12 %778,010 803,976 (3)%
Average homesale price$367,095 $314,984 17 %$341,427 $312,224 9 %
Average homesale broker commission rate2.48 %2.47 %1  bps2.48 %2.47 %1  bps
Net royalty per side$367 $329 12 %$341 $323 6 %
Realogy Brokerage Group
Closed homesale sides101,890 92,399 10 %235,806 248,092 (5)%
Average homesale price$563,513 $509,425 11 %$537,602 $522,050 3 %
Average homesale broker commission rate2.44 %2.41 %3  bps2.43 %2.41 %2  bps
Gross commission income per side$14,315 $13,000 10 %$13,685 $13,343 3 %
Realogy Title Group
Purchase title and closing units45,788 41,619 10 %106,540 111,865 (5)%
Refinance title and closing units18,387 8,014 129 %44,834 17,295 159 %
Average fee per closing unit$2,239 $2,288 (2)%$2,189 $2,308 (5)%
_______________
(a)Includes all franchisees except for Realogy Brokerage Group.
A decline in the number of homesale transactions andand/or decline in homesale prices could adversely affect our results of operations by: (i) reducing the royalties we receive from our franchisees, (ii) reducing the commissions our company owned brokerage operations earn, (iii) reducing the demand for our title and settlement services, (iv) reducing the referral fees we earn in our relocation services business,from affinity, broker-to-broker and the Realogy Advantage Leads Network, and (v) increasing the risk of franchisee default due to lower homesale


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volume. Our results could also be negatively affected by a decline in commission rates charged by brokers or greater commission payments to sales associates.agents or by an increase in volume or other incentives paid to franchisees.
The followingSince 2014, we have experienced approximately a one basis point decline in the average homesale broker commission rate each year, which we believe has been largely attributable to increases in average homesale prices (as higher priced homes tend to have a lower broker commission) and, to a lesser extent, competitors providing fewer or similar services for a reduced fee.
Royalty fees are charged to all franchisees pursuant to the terms of the relevant franchise agreements and are included in each of the real estate brands' franchise disclosure documents. Most of our third-party franchisees are subject to a 6% royalty rate and entitled to volume incentives, although a royalty fee generally equal to 5% of franchisee commission (capped at a set amount per independent sales agent per year) is applicable to franchisees operating under the "capped fee model" that was launched for our Better Homes and Gardens® Real Estate franchise business in January 2019. Volume incentives are calculated as a progressive percentage of the applicable franchisee's eligible annual gross commission income

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and generally result in a net or effective royalty rate ranging from 6% to 3% for the franchisee (prior to taking into account other incentives that may be applicable to the franchisee). Volume incentives increase or decrease as the franchisee's gross commission income generated increases or decreases, respectively. We have the right to adjust the annual volume incentive tables on an annual basis in response to changing market conditions. In addition, certain of our franchisees (including some of our largest franchisees) have a flat royalty rate of less than 6% and are not eligible for volume incentives.
Other incentives may also be used as consideration to attract new franchisees, grow franchisees (including through independent sales agent recruitment) or extend existing franchise agreements, although in contrast to volume incentives, the majority of other incentives are not homesale transaction based.
Transaction volume growth has exceeded royalty revenue growth due primarily to the growth in gross commission income generated by our top 250 franchisees and our increased use of other sales incentives, both of which directly impact royalty revenue. Over the past several years, our top 250 franchisees have grown faster than our other franchisees through organic growth and market consolidation. If the amount of gross commission income generated by our top 250 franchisees continues to grow at a quicker pace relative to our other franchisees, we would expect our royalty revenue to continue to increase, but at a slower pace than homesale transaction volume. Likewise, our royalty revenue would continue to increase, but at a slower pace than homesale transaction volume, if the gross commission income generated by all of our franchisees grows faster than the applicable annual volume incentive table presentsincrease or if we increase our driversuse of standard volume or other incentives. However, in the event that the gross commission income generated by our franchisees increases as a result of increased transaction volume, we would expect to recognize an increase in overall royalty payments to us.
We face significant competition from other national real estate brokerage brand franchisors for franchisees and we expect that the trend of increasing incentives will continue in the future in order to attract, retain, and help grow certain franchisees. We expect to experience pressures on net royalty per side, largely due to the impact of competitive market factors noted above, continued concentration among our top 250 franchisees, and the impact of affiliated franchisees of our Better Homes and Gardens® Real Estate brand moving to the "capped fee model" we adopted in 2019; however, these pressures were offset by increases in homesale prices in the three and nine monthsnine-month periods ended September 30, 20172020.
Realogy Brokerage Group has a significant concentration of real estate brokerage offices and 2016. See "Resultstransactions in geographic regions where home prices are at the higher end of Operations" belowthe U.S. real estate market, particularly the east and west coasts, while Realogy Franchise Group has franchised offices that are more widely dispersed across the United States. Accordingly, operating results and homesale statistics may differ between Realogy Brokerage Group and Realogy Franchise Group based upon geographic presence and the corresponding homesale activity in each geographic region. In addition, the share of commissions earned by independent sales agents directly impacts the margin earned by Realogy Brokerage Group. Such share of commissions earned by independent sales agents varies by region and commission schedules are generally progressive to incentivize sales agents to achieve higher levels of production. Commission share has been and we expect will continue to be subject to upward pressure in favor of the independent sales agent for a discussionvariety of factors, including more aggressive recruitment and retention activities taken by us and our competitors as to how these drivers affected our business for the periods presented.well as growth in independent sales agent teams.

46
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 % Change 2017 2016 % Change
RFG (a)           
Closed homesale sides318,961
 323,176
 (1%) 866,956
 861,254
 1%
Average homesale price$292,000
 $275,325
 6% $287,558
 $270,669
 6%
Average homesale broker commission rate2.49% 2.50% (1) bps 2.50% 2.51% (1) bps
Net effective royalty rate4.42% 4.50% (8) bps 4.42% 4.50% (8) bps
Royalty per side$334
 $322
 4% $331
 $318
 4%
NRT           
Closed homesale sides95,236
 95,605
 —% 262,849
 258,163
 2%
Average homesale price$506,418
 $486,343
 4% $515,617
 $487,781
 6%
Average homesale broker commission rate2.45% 2.46% (1) bps 2.45% 2.47% (2) bps
Gross commission income per side$13,142
 $12,681
 4% $13,358
 $12,750
 5%
Cartus           
Initiations39,608
 40,556
 (2%) 126,921
 129,290
 (2%)
Referrals23,905
 25,495
 (6%) 64,392
 68,526
 (6%)
TRG           
Purchase title and closing units (b)43,764
 42,932
 2% 122,069
 116,082
 5%
Refinance title and closing units (c)6,513
 15,170
 (57%) 21,370
 36,100
 (41%)
Average fee per closing unit$2,115
 $1,824
 16% $2,092
 $1,865
 12%
_______________
(a)Includes all franchisees except for NRT.
(b)
The amounts presented for the three and nine months ended September 30, 2017 include 3,325 and 8,351 purchase units, respectively, as a result of the acquisitions completed prior to the third quarter of 2017.
(c)
The amounts presented for the three and nine months ended September 30, 2017 include 725 and 1,858 refinance units, respectively, as a result of the acquisitions completed prior to the third quarter of 2017.


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RESULTS OF OPERATIONS
Discussed below are our condensed consolidated results of operations and the results of operations for each of our reportable segments. The reportable segments presented below represent our operating segments for which separate financial information is available and which is utilized on a regular basis by our chief operating decision maker to assess performance and to allocate resources. In identifying our reportable segments, we also consider the nature of services provided by our operating segments. Management evaluates the operating results of each of our reportable segments based upon revenue and Operating EBITDA. Operating EBITDA is defined by us as net income (loss) before depreciation and amortization, interest (income) expense, net, (other than Relocation Services interest for securitization assets and securitization obligations) and income taxes, eachand other items that are not core to the operating activities of which is presentedthe Company such as restructuring charges, former parent legacy items, gains or losses on our Condensed Consolidated Statementsthe early extinguishment of Operations.debt, impairments, gains or losses on discontinued operations and gains or losses on the sale of investments or other assets. Our presentation of Operating EBITDA may not be comparable to similarly titled measures used by other companies.
Our results of operations should be read in conjunction with our other disclosures in this Item 2. including under the heading Current Business and Industry Trends.
Three Months Ended September 30, 20172020 vs. Three Months EndedSeptember 30, 20162019
Our consolidated results comprised the following:
 Three Months Ended September 30,
 20202019Change
Net revenues$1,857 $1,550 $307 
Total expenses1,711 1,700 11 
Income (loss) from continuing operations before income taxes, equity in earnings and noncontrolling interests146 (150)296 
Income tax expense (benefit)54 (23)77 
Equity in earnings of unconsolidated entities(53)(7)(46)
Net income (loss) from continuing operations145 (120)265 
Net (loss) income from discontinued operations(46)8 (54)
Net income (loss)99 (112)211 
Less: Net income attributable to noncontrolling interests(1)(1)— 
Net income (loss) attributable to Realogy Holdings and Realogy Group$98 $(113)$211 
 Three Months Ended September 30,
 2017 2016 Change
Net revenues$1,674
 $1,644
 $30
Total expenses (1)1,521
 1,468
 53
Income before income taxes, equity in earnings and noncontrolling interests153
 176
 (23)
Income tax expense67
 74
 (7)
Equity in earnings of unconsolidated entities(10) (5) (5)
Net income96
 107
 (11)
Less: Net income attributable to noncontrolling interests(1) (1) —
Net income attributable to Realogy Holdings and Realogy Group$95
 $106
 $(11)

_______________
(1)Total expenses for the three months ended September 30, 2017 includes $2 million of restructuring charges, $1 million related to loss on the early extinguishment of debt and a net cost of $1 million of former parent legacy items. Total expenses for the three months ended September 30, 2016 includes $9 million of restructuring charges partially offset by $5 million of gains related to mark-to-market adjustments for our interest rate swaps.
Net revenues increased $30$307 million or 2%20% for the three months ended September 30, 20172020 compared with the three months ended September 30, 2016, principally due to increases in gross commission income and franchise fees as a result of2019 driven by higher homesale transaction volume at both Realogy Franchise and Brokerage Groups primarily due to a strong recovery in the residential real estate market which began late in the second quarter of 4% on2020 following a combined basis for NRT and RFG.period of sharp decline in homesale transactions starting in the final weeks of the first quarter of 2020.
Total expenses increased $53$11 million or 4%1% for the third quarter of 2020 compared to the third quarter of 2019 primarily due to:
•a $53$230 million increase in commission and other sales associate-relatedagent-related costs due to an increase inprimarily as a result of the impact of higher homesale transaction volume at NRTRealogy Brokerage Group and higher sales commissions paidagent commission costs primarily driven by a shift in mix to its independent sales associates;more productive, higher compensated agents, the impact of retention efforts, and business and geographic mix;
•a $5$27 million increase in marketing expenses;operating and general and administrative expenses primarily due to higher employee incentive accruals, partially offset by lower employee-related, occupancy and other operating costs as a result of temporary COVID-19 related cost savings initiatives; and
•the absence of a $4$10 million net increase in interest expense to $41 milliongain on the early extinguishment of debt as a result of the repurchase of Senior Notes completed in the third quarter of 2017 from $372019,
partially offset by:
•lease asset impairments of $6 million induring the third quarter of 20162020 compared to impairments of $240 million during the third quarter of 2019 which included a goodwill impairment charge of $237 million (reducing the net carrying value of Realogy Brokerage Group by $180 million after accounting for the related income tax benefit of $57 million) and $3 million related to lease asset impairments;

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•an $18 million net decrease in interest expense primarily due to the absence ofa $12 million decline in expense related to mark-to-market adjustments for our interest rate swaps that resulted in no gains or losses during the third quarter of $52020 compared to losses of $12 million during the third quarter of 2016 less a $1 million decrease as a result of a reduction in total outstanding indebtedness2019 and a lower weighted averagedecrease in interest rate.expense due to LIBOR rate decreases; and
The expense increases were partially offset by:
•a $7 million decrease in restructuringmarketing expense primarily due to not holding in person meetings and conferences and lower advertising costs relateddue to the Company's business optimization plan; andCOVID-19 pandemic.
a $2 million decreaseEquity in operating and general and administrative expenses primarily driven by:
◦a $10 million increase in other expenses including professional fees and occupancy costs; and
◦a $1 million increase in employee-related costs primarily related to acquisitions;
partially offset by:
◦a $10 million decrease in variable operating costs at TRG primarily due to lower refinance and underwriter volume.
Earnings from equity investmentsearnings were $10$53 million during the third quarter of 20172020 compared to $5earnings of $7 million during the third quarter of 2016. The $5 million increase is equity earnings is2019 primarily due to:


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to an $8 million increase in equity earnings at NRT as a result of $14 million of earnings from the sale of the first two phases of PHH Home Loans' assets to Guaranteed Rate Affinity, partially offset by $2 million of exit costs. In addition, there was a $4 million decreaseimprovement in earnings due to lower operating results as a result of lower origination volume, compressed industry margins and lower results due to the level of organizational change associated with the transition to the operations of Guaranteed Rate Affinity.
The increase in equity earnings was partially offset by:
a $3 million decrease in equity earnings at TRG primarily related to costs associated with the start up of operations of Guaranteed Rate Affinity including $1 million of amortization of intangible assets recordedat Realogy Title Group. Equity in purchase accounting.
As partearnings for Guaranteed Rate Affinity represented approximately 17% of the business optimization initiativeCompany's Operating EBITDA for the Company began in the fourththird quarter of 2015, we incurred $22020, increasing by $46 million of restructuring costsfrom $5 million in the third quarter of 2017 compared2019 to $9$51 million of costs in the third quarter of 2016.2020 as a result of the low mortgage rate environment and improved margins in the venture. Equity in earnings for Realogy Title Group's other equity method investments remained flat at $2 million during the third quarter of 2020 and 2019.
During the third quarter of 2020, we incurred $13 million of restructuring costs primarily related to the Company's restructuring program focused on office consolidation and instituting operational efficiencies to drive profitability. The Company expects to incur an additional $4 million related to initiatives still in progress bringing the estimated total cost of the initiative to be $62 million.approximately $108 million, with $74 million incurred to date. See Note 6, "Restructuring Costs", into the Condensed Consolidated Financial Statements for additional information.
The Company's provision for income taxes in interim periods is computed by applying its estimated annual effective tax rate against the income or loss before income taxes for the period.  In addition, non-recurring or discrete items are recorded in the period in which they occur.  The provision for income taxes was $67an expense of $54 million for the three months ended September 30, 20172020 compared to $74a benefit of $23 million for the three months ended September 30, 2016. Our federal and state blended statutory rate is estimated to be 40% for 2017 and our full year effective tax rate is estimated to be 41%.2019. Our effective tax rate was 41%27% and 16% for both the three months ended September 30, 20172020 and September 30, 2016.2019, respectively.
The following table reflects the results of each of our reportable segments during the three months ended September 30, 20172020 and 2016:2019:
 Revenues (a)$ Change%
Change		Operating EBITDA$ Change%
Change		Operating EBITDA MarginChange
 202020192020201920202019
Realogy Franchise Group$262 $240 $22 9 %$196 $170 $26 15 %75 %71 %4 
Realogy Brokerage Group1,479 1,222 257 21 61 31 30 97 4 3 1 
Realogy Title Group213 170 43 25 95 31 64 20645 18 27 
Corporate and Other(97)(82)(15)*(43)(26)(17)*
Total continuing operations$1,857 $1,550 $307 20 %$309 $206 $103 50 %17 %13 %4 
Less: Depreciation and amortization43 42 
Interest expense, net48 66 
Income tax expense (benefit)54 (23)
Restructuring costs, net (b)13 11 
Impairments (c)6 240 
Former parent legacy cost, net (d)1 1 
Gain on the early extinguishment of debt (d)— (10)
Net income (loss) from continuing operations attributable to Realogy Holdings and Realogy Group144 (121)
Net (loss) income from discontinued operations(46)8 
Net income (loss) attributable to Realogy Holdings and Realogy Group$98 $(113)
_______________
* not meaningful
(a)Includes the elimination of transactions between segments, which consists of intercompany royalties and marketing fees paid by Realogy Brokerage Group of $97 million and $82 million during the three months ended September 30, 2020 and 2019, respectively.
(b)Restructuring charges incurred for the three months ended September 30, 2020 include $11 million at Realogy Brokerage Group and $2 million at Corporate and Other. Restructuring charges incurred for the three months ended September 30, 2019 include $2 million at Realogy Franchise Group, $8 million at Realogy Brokerage Group and $1 million at Corporate and Other.
(c)Impairments for the three months ended September 30, 2020 relate to lease asset impairments. Impairments for the three months ended September 30, 2019 include a goodwill impairment charge of $237 million (which reduced the net carrying value of Realogy

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 Revenues (a) 
%
Change
 EBITDA (b) 
%
Change
 EBITDA Margin Change
 2017 2016  2017 2016  2017 2016 
RFG$224
 $215
 4 % $159
 $153
 4 % 71% 71% —
NRT1,267
 1,231
 3
 62
 74
 (16) 5
 6
 (1)
Cartus111
 116
 (4) 37
 40
 (8) 33
 34
 (1)
TRG154
 164
 (6) 21
 23
 (9) 14
 14
 —
Corporate and Other(82) (82) *
 (25) (20) *
      
Total Company$1,674
 $1,644
 2 % $254
 $270
 (6%) 15% 16% (1)
Less: Depreciation and amortization (c) 51
 53
        
Interest expense, net 41
 37
        
Income tax expense 67
 74
        
Net income attributable to Realogy Holdings and Realogy Group $95
 $106
        
Brokerage Group by $180 million after accounting for the related income tax benefit of $57 million) and $3 million related to lease asset impairments.
_______________(d)Former parent legacy items and Gain on the early extinguishment of debt are recorded in Corporate and Other. During the third quarter of 2019, the Company repurchased $93 million of its 4.875% Senior Notes through open market purchases resulting in a gain on the early extinguishment of debt of $10 million.
As described in the aforementioned table, Operating EBITDA margin for "Total continuing operations" expressed as a percentage of revenues increased 4 percentage points to 17% for the three months ended September 30, 2020 compared to 13% for the same period in 2019. On a segment basis, Realogy Franchise Group's margin increased 4 percentage points to 75% from 71% primarily due to an increase in royalty revenues. Realogy Brokerage Group's margin increased 1 percentage point to 4% from 3% primarily due to lower operating and employee expenses primarily due to temporary COVID-19 related cost savings initiatives, partially offset by higher agent commission costs primarily driven by a shift in mix to more productive, higher compensated agents, the impact of retention efforts, and business and geographic mix. Realogy Title Group's margin increased 27 percentage points to 45% from 18% primarily as a result of an increase in equity in earnings of Guaranteed Rate Affinity as a result of the low mortgage rate environment and improved margins in the venture.
*not meaningful
(a)Includes the elimination of transactions between segments, which consists of intercompany royalties and marketing fees paid by NRT of $82 million during both the three months ended September 30, 2017 and September 30, 2016.
(b)EBITDA for the three months ended September 30, 2017 includes $1 million related to loss on the early extinguishment of debt and a net cost of $1 million of former parent legacy items in Corporate and Other and $2 million of restructuring charges in NRT.
The Corporate and Other segment Operating EBITDA for the three months ended September 30, 2016 includes $92020 decreased $17 million to negative $43 million primarily due to higher employee incentive accruals.
Realogy Franchise and Brokerage Groups on a Combined Basis
The following table reflects Realogy Franchise and Brokerage Group's results before the intercompany royalties and marketing fees as well as on a combined basis to show the Operating EBITDA contribution of restructuring charges reflected above as follows: $6 million in NRT, $1 million in RFG, $1 million in Cartus and $1 million in TRG.
(c)Depreciation and amortization for the three months ended September 30, 2017 includes $1 million of amortization expense relatedthese business segments to Guaranteed Rate Affinity's purchase accounting included in the "Equity in earnings of unconsolidated entities" line on the Condensed Consolidated Statement of Operations.
As described in the aforementioned table,overall Operating EBITDA of the Company. The Operating EBITDA margin for "Total Company" expressed as a percentage of revenues decreasedthe combined segments increased 1 percentage point from 15% to 15% from 16% forprimarily due to lower operating and employee expenses primarily due to temporary COVID-19 related cost savings initiatives and an increase in royalty revenues at Realogy Franchise Group, partially offset by higher agent commission costs at Realogy Brokerage Group during the third quarter of 2020 compared to the third quarter of 2019:
 Revenues$ Change%
Change		Operating EBITDA$ Change%
Change		Operating EBITDA MarginChange
 202020192020201920202019
Realogy Franchise Group (a)$165 $158 7 4 $99 $88 11 13 60 %56 %4 
Realogy Brokerage Group (a)1,479 1,222 257 21 158 113 45 40 11 9 2 
Realogy Franchise and Brokerage Groups Combined$1,644 $1,380 264 19 $257 $201 56 28 16 %15 %1 
_______________
(a)The segment numbers noted above do not reflect the impact of intercompany royalties and marketing fees paid by Realogy Brokerage Group to Realogy Franchise Group of $97 million and $82 million during the three months ended September 30, 2017 compared to the same period in 2016. On a segment basis, RFG's margin remained flat at 71%. NRT's margin decreased 1 percentage point to 5% from 6% primarily due to higher sales commission percentages paid to its independent sales associates offset by lower restructuring costs2020 and an increase in earnings related to its equity investment in PHH Home Loans during the third quarter of 2017 compared to the same period in 2016. Cartus' margin decreased 1 percentage point to 33% from 34% primarily due2019, respectively.


Realogy Franchise Group
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to lower international revenues. TRG's margin remained flat at 14% due to losses from equity investments during the third quarter of 2017 compared to earnings from equity investments during the third quarter of 2016 primarily due to costs associated with the start up of operations of Guaranteed Rate Affinity, offset by the reversal of a legal reserve.
Corporate and Other EBITDA for the three months ended September 30, 2017 declined $5Revenues increased $22 million to negative $25$262 million primarily dueand Operating EBITDA increased $26 million to a $2 million increase in employee costs due to higher employee incentive accruals and investments in technology development, a $3 million increase in professional fees supporting strategic initiatives, $1 million related to loss on the early extinguishment of debt as a result of the reduction in the Unsecured Letter of Credit Facility and a net cost of $1 million of former parent legacy items during the third quarter of 2017 compared to the third quarter of 2016.
EBITDA before restructuring charges was $256$196 million for the three months ended September 30, 20172020 compared with the same period in 2019.
Revenues increased $22 million primarily as a result of:
•a $24 million increase in third-party domestic franchisee royalty revenue primarily due to a 31% increase in homesale transaction volume at Realogy Franchise Group which consisted of a 17% increase in average homesale price and a 12% increase in existing homesale transactions; and
•a $16 million increase in intercompany royalties received from Realogy Brokerage Group,
partially offset by:
•a $10 million decrease in lead referral revenues driven by lower volume and referral transactions primarily driven by the discontinuation of the USAA affinity program which ceased new enrollments in the third quarter of 2019;
•a $5 million decrease in revenue related to the early termination of third party listing fee agreements; and
•a $2 million decrease in registration and brand marketing fund revenue, which had a related expense decrease of $5 million resulting in a $3 million net positive impact on Operating EBITDA, due to not holding in person meetings

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and conferences and lower advertising costs due to the COVID-19 pandemic in the third quarter of 2020 compared to $279the third quarter of 2019.
Realogy Franchise Group revenue includes intercompany royalties received from Realogy Brokerage Group of $94 million and $78 million during the third quarter of 2020 and 2019, respectively, which are eliminated in consolidation against the expense reflected in Realogy Brokerage Group's results.
The $26 million increase in Operating EBITDA was primarily due to the $22 million increase in revenues and the $5 million decrease in marketing expense discussed above, partially offset by higher employee incentive accruals.
Realogy Brokerage Group
Revenues increased $257 million to $1,479 million and Operating EBITDA increased $30 million to $61 million for the three months ended September 30, 2016. EBITDA before restructuring charges by reportable segment for the three months ended September 30, 2017 was as follows:
 Three Months Ended September 30,  
 2017 2016  
 EBITDA Restructuring Charges EBITDA Before Restructuring EBITDA Before Restructuring %
Change
RFG$159
 $—
 $159
 $154
 3 %
NRT62
 2
 64
 80
 (20)
Cartus37
 —
 37
 41
 (10)
TRG21
 —
 21
 24
 (13)
Corporate and Other(25) —
 (25) (20) *
Total Company$254
 $2
 $256
 $279
 (8%)
_______________
*not meaningful
The following table reflects RFG and NRT results on a combined basis for the third quarter of 2017 compared to the third quarter of 2016. The EBITDA before restructuring margin for the combined segments decreased 1 percentage point from 17% to 16% due primarily to higher sales commission percentages paid to NRT's independent sales associates:
 Revenues (a) 
%
Change
 EBITDA Before Restructuring (b) 
%
Change
 Margin Change
 2017 2016  2017 2016  2017 2016 
RFG and NRT Combined$1,409
 $1,364
 3% $223
 $234
 (5%) 16% 17% (1)
_______________
(a)Excludes transactions between segments, which consists of intercompany royalties and marketing fees paid by NRT to RFG of $82 million during both the three months ended September 30, 2017 and 2016.
(b)EBITDA for the combined RFG and NRT segments excludes $2 million and $7 million of restructuring charges for the three months ended September 30, 2017 and 2016, respectively.
Real Estate Franchise Services (RFG)
Revenues increased $9 million to $224 million and EBITDA increased $6 million to $159 million for the three months ended September 30, 20172020 compared with the same period in 2016.2019.
The revenue increase in revenueof $257 million was primarily driven by a $2 million22% increase in third-party domestic franchisee royalty revenuehomesale transaction volume at Realogy Brokerage Group which primarily consisted of an 11% increase in average homesale price and a 10% increase in existing homesale transactions due to a 6% increasestrong recovery in the average homesale price, partially offset by a 1% decreaseresidential real estate market which began in the numberlate second quarter of 2020 following a period of sharp decline in homesale transactions including the negative impact attributable to regional market disruption due to hurricanesstarting in the thirdfinal weeks of the first quarter of 2017, and a lower net effective royalty rate. Revenue also2020.
Operating EBITDA increased due to a $2$30 million increase in royalties received from NRT as a result of volume increases at NRT, a $3 million increase in other revenue primarily due to brand conferences and franchisee events and to:
•a $2 million increase in international revenues.
The intercompany royalties received from NRT of $81 million and $79 million during the third quarter of 2017 and 2016, respectively, are eliminated in consolidation to avoid the revenue from being double counted in NRT and RFG. See "Company Owned Real Estate Brokerage Services" for a discussion of the drivers related to intercompany royalties paid to RFG.


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The $6 million increase in EBITDA was principally due to the $9$257 million increase in revenues discussed aboveabove;
•a $15 million decrease in employee-related, occupancy costs and the absence of $1 million of restructuring charges incurred in the third quarter of 2016,other operating costs due primarily to temporary COVID-19 related cost savings initiatives, partially offset by higher employee incentive accruals; and
•a $2$4 million increasedecrease in expenses relatedmarketing expense due to lower advertising costs as a result of the brand conferences and franchisee events.COVID-19 pandemic,
Company Owned Real Estate Brokerage Services (NRT)
Revenues increased $36 million to $1,267 million and EBITDA decreased $12 million to $62 million for the three months ended September 30, 2017 compared with the same period in 2016.
The revenue increase of $36 million was comprised of a $19 million increase in commission income earned on homesale transactions by our existing brokerage operations and a $17 million increase in commission income earned from acquisitions. The increase was driven by a 4% increase in the average price of homes, partially offset by by:
•a 1 basis point decrease in the average broker commission rate. The number of homesale transactions remained flat in spite of the negative impact on homesale transaction volume attributable to the market disruption in Texas and Florida due to the hurricanes during the third quarter of 2017. We believe our positive revenue growth is attributable to the recruiting and organic growth focus by NRT management as well as stabilization in the high end of the housing market. The stabilization at the high end of the housing market had an adverse impact on the average homesale broker commission rate. In addition, homesale price is continuing to increase due to continued constrained inventory levels across the lower and mid price points in the markets served by NRT.
EBITDA decreased $12 million primarily due to:
a $53$230 million increase in commission expenses paid to independent sales associatesagents from $834$875 million in the third quarter of 20162019 to $887$1,105 million in the third quarter of 2017. The $53 million increase is comprised2020. Commission expense increased primarily as a result of a $41 million increase in commission expense due to our existing brokerage operations and was driven by the impact of initiatives focused on growing and retaining our productive independent sales associate base and higher homesale transaction volume as discussed above, as well as higher agent commission costs primarily driven by a $12 million increaseshift in commission expense relatedmix to acquisitions. The $53 million increase in commission expense was significantly impacted bymore productive, higher compensated agents, the miximpact of retention efforts, and business as approximately 70% of the increase was due to higher homesale transaction volume in the west region where we pay and geographic mix; and
•a greater proportion of commissions to independent sales associates;
a $7 million increase in other costs including occupancy costs;
a $2 million increase in marketing expenses including the effect of acquisitions; and
a $2$16 million increase in royalties paid to RFGRealogy Franchise Group from $79$78 million in the third quarter of 20162019 to $81$94 million in the third quarter of 2017.
These EBITDA decreases were partially offset by:
the $36 million increase in revenues discussed above;
an $8 million increase in earnings for our equity method investment in PHH Home Loans for the third quarter of 2017 compared to the third quarter 2016 as a result of $14 million of earnings from the sale of the first two phases of PHH Home Loans' assets to Guaranteed Rate Affinity partially offset by $2 million of exit costs. In addition, there was a $4 million decrease in earnings due to lower operating results as a result of lower origination volume, compressed industry margins and lower results due to the level of organizational change2020 associated with the transition of the operations to Guaranteed Rate Affinity;homesale transaction volume increase as described above.
a $4 million decrease in restructuring costs related to the Company's business optimization plan from $6 million in the third quarter of 2016 to $2 million in the third quarter of 2017; and
a $3 million decrease in employee-related costs due to a $5 million decrease primarily related to expense reduction initiatives offset by a $2 million increase in costs attributable to acquisitions.
Relocation Services (Cartus)Realogy Title Group
Revenues decreased $5increased $43 million to $111$213 million and Operating EBITDA decreased $3increased $64 million to $37$95 million for the three months ended September 30, 20172020 compared with the same period in 2016.2019.
Revenues decreased $5increased $43 million primarily as a result of a $3$17 million decreaseincrease in otherresale revenue due to lower volume andan increase in purchase transactions, a $12 million increase in underwriter revenue with unaffiliated agents, which had a $2 million decreasenet positive impact on Operating EBITDA due to the related expense increase of $10 million, and an $11 million increase in internationalrefinance revenue due to an increase in activity in the refinance market.
Operating EBITDA increased $64 million primarily as a result of a $46 million increase in equity in earnings related to Guaranteed Rate Affinity due to the favorable mortgage rate environment and improved margins in the venture, a $17 million increase in resale revenue, an increasingly higher percentage of clients reducing their global relocation activity.
EBITDA decreased $3$11 million as a result ofincrease in refinance revenue and the $5$2 million decreasenet positive impact in revenuesunderwriter transactions with unaffiliated agents discussed above, partially offset by a $1$15 million decreaseincrease in employee relatedand other operating costs due to an increase in variable costs due to higher volume and the absence of $1 million of restructuring costs incurred during the third quarter of 2016.higher employee incentive accruals.
Title and Settlement Services (TRG)Discontinued Operations - Cartus Relocation
Revenues for Cartus Relocation Services decreased $10$27 million to $154$52 million and Operating EBITDA decreased $2$13 million to $21$4 million for the three months ended September 30, 20172020 compared with the same period in 2016.2019.
The decrease in revenues was

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Revenues decreased $27 million primarily as a result of a $6 million decrease in refinancing revenue, which was the primary driver of an $8 million decrease of underwriter revenue, partially offset by a $7 million increase in resale revenue related to acquisitions. The overall decline in revenue was due to a decrease in activity in the refinance market and the negative impact attributable to regional market disruption due to hurricanes in the third quarter of 2017.
EBITDA decreased $2 million as a result of the $10 million decrease in revenues discussed above, an increase of $2 million in employee-related costs primarily related to acquisitions and a $2 million decrease in earnings from equity investments related to costs associated with the start up of operations of Guaranteed Rate Affinity during the third quarter of 2017. These decreases were mostly offset byinternational revenue, a $10 million decrease in variable operating costsother relocation revenue and a $7 million decrease in referral revenue, which were primarily due todriven by lower refinancing and underwriter volume and $2 millionlargely related to the reversalCOVID-19 pandemic. Cartus Relocation Services experienced a decline in new initiations due to the COVID-19 pandemic in the second and third quarters of 2020 and this trend is expected to continue.
Operating EBITDA decreased $13 million due to the revenue decrease discussed above, partially offset by a legal reserve.decrease in employee and other operating costs as a result of cost savings initiatives.
Nine Months Ended September 30, 20172020 vs. Nine Months Ended September 30, 20162019
Our consolidated results comprised the following:
 Nine Months Ended September 30,
 20202019Change
Net revenues$4,180 $4,268 $(88)
Total expenses4,607 4,441 166 
Loss from continuing operations before income taxes, equity in earnings and noncontrolling interests(427)(173)(254)
Income tax benefit(67)(22)(45)
Equity in earnings of unconsolidated entities(98)(15)(83)
Net loss from continuing operations(262)(136)(126)
Net loss from discontinued operations(114)(5)(109)
Net loss(376)(141)(235)
Less: Net income attributable to noncontrolling interests(2)(2)— 
Net loss attributable to Realogy Holdings and Realogy Group$(378)$(143)$(235)
 Nine Months Ended September 30,
 2017 2016 Change
Net revenues$4,670
 $4,440
 $230
Total expenses (1)4,368
 4,177
 191
Income before income taxes, equity in earnings and noncontrolling interests302
 263
 39
Income tax expense131
 114
 17
Equity in earnings of unconsolidated entities(7) (10) 3
Net income178
 159
 19
Less: Net income attributable to noncontrolling interests(2) (3) 1
Net income attributable to Realogy Holdings and Realogy Group$176
 $156
 $20

_______________
(1)Total expenses for the nine months ended September 30, 2017 includes $9 million of restructuring charges, an $8 million expense related to the settlement of the Strader legal matter, $5 million related to losses on the early extinguishment of debt and $4 million of losses related to mark-to-market adjustments for our interest rate swaps, partially offset by a net benefit of $10 million of former parent legacy items. Total expenses for the nine months ended September 30, 2016 includes $40 million of losses related to mark-to-market adjustments for our interest rate swaps, $30 million of restructuring charges and a net cost of $1 million of former parent legacy items.
Net revenues increased $230decreased $88 million or 5%2% for the nine months ended September 30, 20172020 compared with the same period in 2016, principally due to increases in gross commission income and franchise fees as a result of anine months ended September 30, 2019 driven by lower homesale transaction volume increaseat Realogy Brokerage Group primarily due to the COVID-19 pandemic, which resulted in a sharp decline in homesale transactions starting in the final weeks of 7% onthe first quarter of 2020 followed by a combined basis for NRT and RFG.strong recovery in the residential real estate market beginning late in the second quarter of 2020.
Total expenses increased $191$166 million or 5%4% for the nine months ended September 30, 2020 compared to the same period of 2019 primarily due to:
•impairments of $460 million during the nine months ended September 30, 2020 compared to impairments of $243 million during the nine months ended September 30, 2019. The nine months ended September 30, 2020 include a $206goodwill impairment charge of $413 million (which reduced the net carrying value of Realogy Brokerage Group by $314 million after accounting for the related income tax benefit of $99 million), an impairment charge of $30 million (which reduced the carrying value of trademarks at Realogy Franchise Group) and $17 million related to lease asset impairments. The nine months ended September 30, 2019 include a goodwill impairment charge of $237 million (which reduced the net carrying value of Realogy Brokerage Group by $180 million after accounting for the related income tax benefit of $57 million) and $6 million related to lease asset impairments;
•a $15 million increase in commission and other sales associate-relatedagent-related costs primarily as a result of higher agent commission costs primarily driven by a shift in mix to more productive, higher compensated agents, the impact of retention efforts, and business and geographic mix;
•an $8 million loss on the early extinguishment of debt during the nine months ended September 30, 2020 as a result of the refinancing transactions in June 2020 compared to a $5 million net gain on the early extinguishment of debt during the nine months ended September 30, 2019 primarily due to anthe repurchase of Senior Notes during the third quarter of 2019; and
•a $9 million increase in homesale transaction volume at NRT and higher sales commissions paid to its independent sales associates;restructuring costs,
partially offset by:
•a $39$50 million increasedecrease in operating and general and administrative expenses primarily driven by:
◦$24 million of additional employee-related costs associated with acquisitions;
◦a $24 million increase indue to lower employee-related, occupancy and other expenses including professional fees and occupancy costs; and
◦an $8 million expense related to the settlement of the Strader legal matter in the second quarter of 2017;
partially offset by:
◦a $7 million decrease in variable operating costs at TRG primarily due to lower refinance and underwriter volume;
a $14 million increase in marketing expenses; and
$5 million related to the losses on the early extinguishment of debt primarily as a result of temporary COVID-19 related cost savings initiatives, partially offset by higher employee incentive accruals; and

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•a $45 million decrease in marketing expense primarily due to not holding in person meetings and conferences and lower advertising costs due to the refinancing transaction completedCOVID-19 pandemic during the first quarternine months of 2017.2020 compared to the same period in 2019.
TheInterest expense increases were partially offset by:


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a $42 million net decrease in interest expense to $127was $208 million for the nine months ended September 30, 2017 from $1692020 and remained relatively flat compared to the same period in 2019 due to a $9 million net expense related to mark-to-market adjustments for our interest rate swaps that resulted in losses of $59 million for the nine months ended September 30, 2016. Mark-to-market adjustments for our interest rate swaps resulted in2020 compared to losses of $4$50 million during the same period of 2019, offset by a decrease in interest expense due to LIBOR rate decreases.
Equity in earnings were $98 million for the nine months ended September 30, 20172020 compared to lossesearnings of $40$15 million induring the same period of 2016. Before2019 primarily due to an improvement in earnings of Guaranteed Rate Affinity at Realogy Title Group. Equity in earnings for Guaranteed Rate Affinity represented approximately 18% of the mark-to-market adjustmentsCompany's Operating EBITDA for our interestthe nine months ended September 30, 2020, increasing by $83 million from $12 million during the nine months ended September 30, 2019 to $95 million during the same period of 2020 as a result of the low mortgage rate swaps, interest expense decreased $6environment and improved margins in the venture. Equity in earnings for Realogy Title Group's other equity method investments remained flat at $3 million during both the nine months ended September 30, 2020 and 2019.
During the nine months ended September 30, 2020, we incurred $38 million of restructuring costs primarily related to $123the Company's restructuring program focused on office consolidation and instituting operational efficiencies to drive profitability. The Company expects the estimated total cost to be approximately $108 million, with $74 million incurred to date. See Note 6, "Restructuring Costs", to the Condensed Consolidated Financial Statements for additional information.
The provision for income taxes was a benefit of $67 million for the nine months ended September 30, 2017 from $1292020 compared to a benefit of $22 million for the nine months ended September 30, 2016 as a result of a reduction in total outstanding indebtedness2019. Our effective tax rate was 20% and a lower weighted average interest rate;
a $21 million decrease in restructuring costs related to the Company's business optimization plan (see Note 6, "Restructuring Costs", in the Condensed Consolidated Financial Statements for additional information); and
an $11 million increase in the net benefit of former parent legacy items primarily as a result of the settlement of a Cendant legacy tax matter.
Earnings from equity investments were $7 million14% for the nine months ended September 30, 2017 compared to $10 million2020 and September 30, 2019, respectively. The effective tax rate for the nine months ended September 30, 2016. The $3 million decrease in earnings is primarily due to:
a $4 million decrease in equity earnings at TRG primarily related to costs associated with the start up of operations of Guaranteed Rate Affinity, including $1 million of amortization of intangible assets recorded in purchase accounting.
The decrease in equity earnings was partially offset by:
a $1 million increase in equity earnings at NRT as a result of $14 million of earnings from the first two phases of the sale of PHH Home Loans' assets to Guaranteed Rate Affinity, partially offset by $5 million of exit costs. In addition, there was a $8 million decrease in earnings due to lower operating results as a result of lower origination volume, compressed industry margins and lower results due to the level of organizational change associated with the transition of the operations to Guaranteed Rate Affinity.
The Company's provision for income taxes in interim periods is computed by applying its estimated annual effective tax rate against the income or loss before income taxes for the period.  In addition, non-recurring or discrete items are recorded in the period in which they occur.  The provision for income taxes was $131 million for the nine months ended September 30, 2017 compared to $114 million for the nine months ended September 30, 2016. Our federal and state blended statutory rate is estimated to be 40% for 2017 and our full year effective tax rate is estimated to be 41%. Our effective tax rate was 42% for both the nine months ended September 30, 2017 and September 30, 2016. The effective tax rate in each reporting period2020 was primarily impacted by a discrete itemitems related to the goodwill impairment charge and equity awards for which the market value at vesting was lower than at the date of grant.
The following table reflects the results of each of our reportable segments during the nine months ended September 30, 20172020 and 2016:2019:
 Revenues (a)$ Change%
Change		Operating EBITDA$ Change%
Change		Operating EBITDA MarginChange
 202020192020201920202019
Realogy Franchise Group$609 $679 $(70)(10)%$419 $448 $(29)(6)%69 %66 %3 
Realogy Brokerage Group3,281 3,369 (88)(3)25 16 9 56 1 — 1 
Realogy Title Group510 444 66 15 168 54 114 21133 12 21 
Corporate and Other(220)(224)4 *(94)(75)(19)*
Total continuing operations$4,180 $4,268 $(88)(2)%$518 $443 $75 17 %12 %10 %2 
Less: Depreciation and amortization134 126 
Interest expense, net208 209 
Income tax benefit(67)(22)
Restructuring costs, net (b)38 29 
Impairments (c)460 243 
Former parent legacy cost, net (d)1 1 
Loss (gain) on the early extinguishment of debt (d)8 (5)
Net loss from continuing operations attributable to Realogy Holdings and Realogy Group(264)(138)
Net loss from discontinued operations(114)(5)
Net loss attributable to Realogy Holdings and Realogy Group$(378)$(143)
_______________
* not meaningful
(a)Includes the elimination of transactions between segments, which consists of intercompany royalties and marketing fees paid by Realogy Brokerage Group of $220 million and $224 million during the nine months ended September 30, 2020 and 2019, respectively.

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 Revenues (a) 
%
Change
 EBITDA (b) 
%
Change
 EBITDA Margin Change
 2017 2016  2017 2016  2017 2016 
RFG$631
 $593
 6 % $427
 $394
 8 % 68% 66% 2
NRT3,556
 3,340
 6
 113
 131
 (14) 3
 4
 (1)
Cartus290
 308
 (6) 65
 74
 (12) 22
 24
 (2)
TRG431
 424
 2
 49
 49
 —
 11
 12
 (1)
Corporate and Other(238) (225) *
 (70) (60) *
      
Total Company$4,670
 $4,440
 5 % $584
 $588
 (1)% 13% 13% —
Less: Depreciation and amortization (c) 150
 149
        
Interest expense, net 127
 169
        
Income tax expense 131
 114
        
Net income attributable to Realogy Holdings and Realogy Group $176
 $156
        
(b)Restructuring charges incurred for the nine months ended September 30, 2020 include $1 million at Realogy Franchise Group, $32 million at Realogy Brokerage Group, $3 million at Realogy Title Group and $2 million at Corporate and Other. Restructuring charges incurred for the nine months ended September 30, 2019 include $3 million at Realogy Franchise Group, $18 million at Realogy Brokerage Group, $2 million at Realogy Title Group and $6 million at Corporate and Other.
_______________(c)Impairments for the nine months ended September 30, 2020 include a goodwill impairment charge of $413 million (which reduced the net carrying value of Realogy Brokerage Group by $314 million after accounting for the related income tax benefit of $99 million), an impairment charge of $30 million (which reduced the carrying value of trademarks at Realogy Franchise Group) and $17 million related to lease asset impairments. Impairments for the nine months ended September 30, 2019 include a goodwill impairment charge of $237 million (which reduced the net carrying value of Realogy Brokerage Group by $180 million after accounting for the related income tax benefit of $57 million) and $6 million related to lease asset impairments.
(d)Former parent legacy items and Loss (gain) on the early extinguishment of debt are recorded in Corporate and Other. During the nine months ended September 30, 2019, the Company recorded a net gain on the early extinguishment of debt of $5 million which consisted of a $10 million gain as a result of the repurchase of Senior Notes completed in the third quarter of 2019, partially offset by a $5 million loss as a result of the refinancing transactions in the first quarter of 2019.
As described in the aforementioned table, Operating EBITDA margin for "Total continuing operations" expressed as a percentage of revenues increased 2 percentage points to 12% for the nine months ended September 30, 2020 compared to 10% for the same period in 2019. On a segment basis, Realogy Franchise Group's margin increased 3 percentage points to 69% from 66% primarily due to a decrease in employee and other operating costs primarily as a result of temporary COVID-19 related cost savings initiatives, partially offset by a decrease in revenue related to the early termination of third party listing fee agreements. Realogy Brokerage Group's margin increased 1 percentage point from zero to 1% primarily due to lower operating expenses primarily due to temporary COVID-19 related cost savings initiatives, partially offset by higher agent commission costs primarily driven by a shift in mix to more productive, higher compensated agents, the impact of retention efforts, and business and geographic mix. Realogy Title Group's margin increased 21 percentage points to 33% from 12% primarily as a result of an increase in equity in earnings due to an improvement in earnings of Guaranteed Rate Affinity as a result of the low mortgage rate environment and improved margins in the venture.
*not meaningful
(a)Includes the elimination of transactions between segments, which consists of intercompany royalties and marketing fees paid by NRT of $238 million and $225 million during the nine months ended September 30, 2017 and September 30, 2016, respectively.
(b)EBITDA for the nine months ended September 30, 2017 includes an $8 million expense related to the settlement of the Strader legal matter and $5 million related to losses on the early extinguishment of debt, partially offset by a net benefit of $10 million of former parent legacy items in Corporate and Other, and $9 million of restructuring charges discussed further below.
The Corporate and Other segment Operating EBITDA for the nine months ended September 30, 2016 includes $302020 decreased $19 million to negative $94 million primarily due to higher employee incentive accruals.
Realogy Franchise and Brokerage Groups on a Combined Basis
The following table reflects Realogy Franchise and Brokerage Group's results before the intercompany royalties and marketing fees as well as on a combined basis to show the Operating EBITDA contribution of restructuring charges reflected above as follows: $15 million in NRT, $6 million in Corporate and Other, $4 million in Cartus and $4 million in RFG, and a net costthese business segments to the overall Operating EBITDA of $1 million of former parent legacy items included in Corporate and Other.


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(c)Depreciation and amortization for the nine months ended September 30, 2017 includes $1 million of amortization expense related to Guaranteed Rate Affinity's purchase accounting included in the "Equity in earnings of unconsolidated entities" line on the Condensed Consolidated Statement of Operations.
As described in the aforementioned table,Company. The Operating EBITDA margin for "Total Company" expressed as a percentage of revenuesthe combined segments remained flat at 13% for12% during both the nine months ended September 30, 2017 compared2020 and 2019:
 Revenues$ Change%
Change		Operating EBITDA$ Change%
Change		Operating EBITDA MarginChange
 202020192020201920202019
Realogy Franchise Group (a)$389 $455 (66)(15)$199 $224 (25)(11)51 %49 %2 
Realogy Brokerage Group (a)3,281 3,369 (88)(3)245 240 5 2 7 7 — 
Realogy Franchise and Brokerage Groups Combined$3,670 $3,824 (154)(4)$444 $464 (20)(4)12 %12 %— 
_______________
(a)The segment numbers noted above do not reflect the impact of intercompany royalties and marketing fees paid by Realogy Brokerage Group to the same period in 2016. On a segment basis, RFG's margin increased 2 percentage points to 68% from 66% due to an increase in homesale transaction volumeRealogy Franchise Group of $220 million and lower restructuring costs. NRT's margin decreased 1 percentage point to 3% from 4% primarily due to higher sales commission percentages paid to its independent sales associates offset by lower restructuring costs for the nine months ended September 30, 2017 compared to the same period in 2016. Cartus' margin decreased 2 percentage points to 22% from 24% primarily due to lower international revenue and lower foreign currency exchange rate gains, partially offset by lower employee related costs during nine months ended the September 30, 2017 compared to the same period in 2016 and the absence of restructuring costs incurred$224 million during the nine months ended September 30, 2016. TRG's margin2020 and 2019, respectively.
Realogy Franchise Group
Revenues decreased 1 percentage point to 11% from 12% for the nine months ended September 30, 2017 compared to the same period in 2016 due to a decrease in earnings from equity investments primarily related to costs associated with the transition and start up of operations of Guaranteed Rate Affinity, partially offset by the reversal of a legal reserve.
Corporate and Other EBITDA for the nine months ended September 30, 2017 declined $10$70 million to negative $70$609 million primarily dueand Operating EBITDA decreased $29 million to an $8 million expense related to the settlement of the Strader legal matter, $5 million related to the losses on the early extinguishment of debt primarily as a result of the refinancing transaction during the first quarter of 2017, a $10 million increase in other costs due to professional fees supporting strategic initiatives and occupancy costs and a $6 million increase in employee costs due to higher employee incentive accruals and investments in technology development. These expenses were partially offset by an $11 million increase in the net benefit of former parent legacy items primarily as a result of the settlement of a Cendant legacy tax matter and the absence of $6 million in restructuring charges incurred during the nine months ended September 30, 2016.
EBITDA before restructuring charges was $593$419 million for the nine months ended September 30, 20172020 compared with the same period in 2019.
Revenues decreased $70 million primarily as a result of:
•a $28 million decrease in registration revenue and brand marketing fund revenue (associated with the waiver of marketing fees from affiliates in response to $618the COVID-19 pandemic), which had a related expense decrease of $35 million resulting in a net $7 million net positive impact on Operating EBITDA, due to not holding in person meetings and conferences and lower advertising costs due to the COVID-19 pandemic;

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•a $25 million decrease in leads referral revenues driven by lower volume and referral transactions primarily driven by the discontinuation of the USAA affinity program which ceased new enrollments in the third quarter of 2019;
•an $11 million decrease in revenue related to the early termination of third party listing fee agreements; and
•a $6 million decrease in other revenue.
Realogy Franchise Group revenue includes intercompany royalties received from Realogy Brokerage Group of $213 million and $215 million during the nine months ended September 30, 2020 and 2019, respectively, which are eliminated in consolidation against the expense reflected in Realogy Brokerage Group's results.
The $29 million decrease in Operating EBITDA was primarily due to the $70 million decrease in revenues discussed above and $9 million of higher expense for bad debt primarily due to the early termination of third party listing fee agreements. These Operating EBITDA decreases were partially offset by the $35 million decrease in marketing expense discussed above and a $15 million decrease in employee and other operating costs principally due to temporary COVID-19 related cost savings initiatives and the discontinuation of the USAA affinity program, partially offset by higher employee incentive accruals.
Realogy Brokerage Group
Revenues decreased $88 million to $3,281 million and Operating EBITDA increased $9 million to $25 million for the nine months ended September 30, 2016.2020 compared with the same period in 2019.
The revenue decrease of $88 million was primarily driven by a 2% decrease in homesale transaction volume at Realogy Brokerage Group primarily due to lower transaction volume in the second quarter of 2020 due to the COVID-19 pandemic and consisted of a 5% decrease in existing homesale transactions, partially offset by a 3% increase in average homesale price. There was a strong recovery in the residential real estate market which began late in the second quarter of 2020, following a period of sharp decline in homesale transactions starting in the final weeks of the first quarter of 2020.
Operating EBITDA before restructuring chargesincreased $9 million primarily due to:
•an $85 million decrease in employee-related, occupancy costs and other operating costs due to temporary COVID-19 related cost savings initiatives, partially offset by reportable segment forhigher employee incentive accruals;
•a $25 million decrease in marketing expense due to lower advertising costs as a result of the nine months ended September 30, 2017 was as follows:COVID-19 pandemic; and
 Nine Months Ended September 30,  
 2017 2016  
 EBITDA Restructuring Charges EBITDA Before Restructuring EBITDA Before Restructuring %
Change
RFG$427
 $1
 $428
 $398
 8 %
NRT113
 8
 121
 146
 (17)
Cartus65
 —
 65
 78
 (17)
TRG49
 —
 49
 50
 (2)
Corporate and Other(70) —
 (70) (54) *
Total Company$584
 $9
 $593
 $618
 (4%)
_______________
*not meaningful
The following table reflects RFG and NRT results on •a combined basis for the nine months ended September 30, 2017 and 2016. The EBITDA before restructuring margin for the combined segments decreased 1 percentage point to 14% from 15% due primarily to higher sales commission percentages$2 million decrease in royalties paid to NRT's independent sales associates:
 Revenues (a) 
%
Change
 EBITDA Before Restructuring (b) 
%
Change
 Margin Change
 2017 2016  2017 2016  2017 2016 
RFG and NRT Combined$3,949
 $3,708
 6% $549
 $544
 1% 14% 15% (1)
_______________
(a)Excludes transactions between segments, which consists of intercompany royalties and marketing fees paid by NRT to RFG of $238 million and $225 million during the nine months ended September 30, 2017 and 2016, respectively.
(b)
EBITDA for the combined RFG and NRT segments excludes $9 million and $19 million of restructuring charges for the nine months ended September 30, 2017 and 2016, respectively.


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Real EstateRealogy Franchise Services (RFG)
Revenues increased $38 million to $631 million and EBITDA increased $33 million to $427Group from $215 million for the nine months ended September 30, 2017 compared with2019 to $213 million in the same period in 2016.of 2020 associated with the volume decline as described above,
The increase in revenue was driven by a $12 million increase in third-party domestic franchisee royalty revenue due to a 6% increase in the average homesale price and a 1% increase in the number of homesale transactions, partially offset by a lower net effective royalty rate. Revenue also increased due to a $12by:
•the $88 million increase in royalties received from NRT as a result of volume increases at NRT, a $4 million increase in other revenue primarily due to other marketing related activities and brand conferences and franchisee events and $3 million increase in international revenues. Brand marketing revenue and related expense both increased $6 million primarily due to the level of advertising spending during the nine months ended September 30, 2017 compared to the same period in 2016.
The intercompany royalties received from NRT of $229 million and $217 million during the nine months ended September 30, 2017 and September 30, 2016, respectively, are eliminated in consolidation to avoid the revenue from being double counted in NRT and RFG. See "Company Owned Real Estate Brokerage Services" for a discussion of the drivers related to intercompany royalties paid to RFG.
The $33 million increase in EBITDA was principally due to the $38 million increasedecrease in revenues discussed aboveabove; and
•a $3 million decrease in restructuring costs incurred in the first nine months of 2017 compared to the same period in 2016, partially offset by a $6 million increase in brand marketing expense discussed above and a $1 million increase in expenses related to the brand conferences and franchisee events.
Company Owned Real Estate Brokerage Services (NRT)
Revenues increased $216 million to $3,556 million and EBITDA declined $18 million to $113 million for the nine months ended September 30, 2017 compared with the same period in 2016.
The revenue increase of $216 million was comprised of a $151 million increase in commission income earned on homesale transactions by our existing brokerage operations and a $65 million increase in commission income earned from acquisitions. The revenue increase was driven by a 2% increase in the number of homesale transactions and a 6% increase in the average price of homes, partially offset by a 2 basis points decrease in the average broker commission rate as well as a negative impact on homesale transaction volume attributable to the market disruption in Texas and Florida due to hurricanes during the third quarter of 2017. We believe our positive revenue growth is attributable to the recruiting and organic growth focus by NRT management as well as a shift from stabilization to sustained growth in the high end of the housing market. The improvement in the high end of the housing market had an adverse impact on the average homesale broker commission rate. In addition, homesale price is continuing to increase due to continued constrained inventory levels across the lower and mid price points in the markets served by NRT.
EBITDA decreased $18 million primarily due to:
a $206$15 million increase in commission expenses paid to independent sales associatesagents from $2,256$2,405 million for the nine months ended September 30, 20162019 to $2,462$2,420 million for the nine months ended September 30, 2017. The increase2020. Commission expense increased primarily as a result of higher agent commission costs primarily driven by a shift in commission expense is duemix to an increase of $166 million by our existing brokerage operations due tomore productive, higher compensated agents, the impact of initiatives focused on growingretention efforts, and retaining our productive independent sales associate basebusiness and highergeographic mix, partially offset by the impact of lower homesale transaction volume as well as a $40discussed above.
Realogy Title Group
Revenues increased $66 million increase related to acquisitions. The $206$510 million increase in commission expense was impacted by the mix of business as approximately 46% of the increase was dueand Operating EBITDA increased $114 million to higher homesale transaction volume in the west region where we pay a greater proportion of commissions to independent sales associates;
a $14 million increase in other costs including occupancy costs of which $6 million related to acquisitions;
a $12 million increase in royalties paid to RFG from $217$168 million for the nine months ended September 30, 20162020 compared with the same period in 2019.
Revenues increased $66 million primarily as a result of a $35 million increase in refinance revenue due to $229an increase in activity in the refinance market and a $32 million increase in underwriter revenue with unaffiliated agents, which had a $5 million net positive impact on Operating EBITDA due to the related expense increase of $27 million. These revenue increases were partially offset by a $4 million decrease in resale revenue due to a decline in purchase transactions as result of the COVID-19 pandemic.
Operating EBITDA increased $114 million primarily as a result of an $83 million increase in equity in earnings primarily related to Guaranteed Rate Affinity due to the favorable mortgage rate environment and improved margins in the venture, a $35 million increase in refinance revenue, the $5 million net positive impact of underwriter transactions with

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unaffiliated agents discussed above, partially offset by a $9 million increase in employee and other operating costs due to an increase in variable costs due to higher volume and higher employee incentive accruals, partially offset by temporary COVID-19 related cost savings initiatives.
Discontinued Operations - Cartus Relocation
Revenues for Cartus Relocation Services decreased $58 million to $152 million and Operating EBITDA decreased $19 million to $2 million for the nine months ended September 30, 2017;
a $6 million increase in employee-related costs due to a $12 million increase attributable to acquisitions offset by a $6 million decrease due to expense reduction initiatives; and
a $6 million increase in marketing expenses of which $3 million related to acquisitions.
These EBITDA decreases were partially offset by:
a $216 million increase in revenues discussed above;
a $7 million decrease in restructuring costs incurred during the nine months ended September 30, 2017 compared to the same period in 2016; and


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a $1 million increase in earnings for our equity method investment in PHH Home Loans for the nine months ended September 30, 2017 compared to the same period in 2016 as a result of $14 million of earnings from the first two phases of the sale of PHH Home Loans' assets to Guaranteed Rate Affinity partially offset by $5 million of exit costs. In addition, there was a $8 million decrease in earnings due to lower operating results as a result of lower origination volume, compressed industry margins and lower results due to the level of organizational change associated with the transition of the operations to Guaranteed Rate Affinity.
Relocation Services (Cartus)
Revenues decreased $18 million to $290 million and EBITDA decreased $9 million to $65 million for the nine months ended September 30, 20172020 compared with the same period in 2016.2019.
Revenues decreased $18$58 million primarily as a result of an $10a $25 million decrease in international revenue, as a result of an increasingly higher percentage of clients reducing their global relocation activity, as well as an $8$17 million decrease in other relocation revenue due to lower volume.
EBITDA decreased $9 million primarily asand a result of the $18$15 million decrease in revenuesreferral revenue, which were primarily driven by lower volume largely related to the COVID-19 pandemic. Cartus Relocation Services experienced a decline in new initiations due to the COVID-19 pandemic in the second and third quarters of 2020 and this trend is expected to continue.
Operating EBITDA decreased $19 million due to the revenue decrease discussed above, and a $3 million net negative impact from foreign currency exchange rates, partially offset by a $5 million decrease in employee related costs, the absence of $4 million of restructuring costs incurred during the nine months ended September 30, 2016 and a $2 million decrease in other operating expenses as a result of lower volume.
Title and Settlement Services (TRG)
Revenues increased $7 million to $431 million and EBITDA remained flat at $49 million for the nine months ended September 30, 2017 compared with the same period in 2016.
The increase in revenues was driven by a $24 million increase in resale revenue of which $16 million was related to acquisitions, partially offset by a $9 million decrease in refinancing revenue and a $5 million decrease of underwriter revenuecosts due to an overall decrease in activity in the refinance market in the third quarter of 2017.cost savings initiatives, including temporary COVID-19 related savings.
EBITDA remained flat as a result of an increase of $11 million in employee-related costs primarily related to acquisitions, a $3 million decrease earnings from equity investments primarily related to costs associated with the start up of operations of Guaranteed Rate Affinity and a $2 million increase in other costs during the nine months ended September 30, 2017 compared with the same period in 2016. The decreases were offset by the $7 million increase in revenues discussed above, a $7 million decrease in variable operating costs primarily due to lower refinancing and underwriter volume and $2 million related to the reversal of a legal reserve.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Financial Condition
September 30, 2020December 31, 2019Change
Total assets$7,048 $7,543 $(495)
Total liabilities5,315 5,447 (132)
Total equity1,733 2,096 (363)
 September 30, 2017 December 31, 2016 Change
Total assets$7,521
 $7,421
 $100
Total liabilities5,056
 4,952
 104
Total equity2,465
 2,469
 (4)
For the nine months ended September 30, 2017,2020, total assets increased $100assets decreased $495 million primarily due to to:
•a $74$413 million increase in cash and cash equivalents, a $45 million increase in trade and relocation receivables due to seasonal increases in volume, a $29 million increase in other non-current assets primarily due to higher prepaid expenses and investments and a $14 million increasedecrease in goodwill from acquisitions. These increases were partially offset byas a $72result of the impairment at Realogy Brokerage Group during the first quarter of 2020;
•a $167 million decrease in assets held for sale;
•a $55 million net decrease in franchise agreements and other amortizable intangible assets primarily due to amortization.amortization;
•a $38 million net decrease in operating lease assets;
•a $30 million decrease in trademarks as a result of the impairment of trademarks at Realogy Franchise Group during the first quarter of 2020; and
•a $20 million decrease in property and equipment,
partially offset by:
•a $145 million increase in cash and cash equivalents;
•a $52 million increase in other current and non-current assets primarily related to an increase in our investment in Guaranteed Rate Affinity due to an increase in equity in earnings partially offset by dividends received, an increase in prepaid incentives and an increase in marketable securities due to the reinvestment of certificates of deposit at Realogy Title Group; and
•a $30 million increase in trade receivables primarily due to increases in volume.
Total liabilities increased $104decreased $132 million primarily due to to:
•a $129$111 million increasedecrease in deferred tax liabilities primarily due to the recognition of an income tax benefit of $99 million related to the goodwill impairment charge during the first quarter of 2020;
•an $88 million decrease in corporate debt primarily due to lower borrowings under the Revolving Credit Facility and quarterly amortization payments on the term loan facilities;
•a $29$59 million increasedecrease in securitization obligations, liabilities held for sale; and
•a $12$23 million increasedecrease in accounts payable and a $7operating lease liabilities,
partially offset by:
•an $89 million increase in accrued expenses and other current liabilities partially offset by primarily due to higher employee-related accruals and accrued interest; and

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•a $32$57 million decreaseincrease in other non-current liabilities due to interest rate swaps and liabilities related to contingent consideration from acquisitions, a $31 million decrease in corporate debt primarily due to amortization paymentsmark-to-market adjustments on the term loan facilities and a $10 million decrease in the due to former parent liability primarily as a result of the resolution of a Cendant legacy tax matter.Company's interest rate swaps.


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Total equity decreased $4$363 million primarily due to a $182net loss of $378 million, decreaseprimarily due to impairments of $460 million during the nine months ended September 30, 2020, partially offset by a $14 million increase in additional paid in capital primarily related to the Company's repurchase of $180 million of common stock and $37 million of dividend payments partially offset by stock-based compensation activity of $34 million. The decrease in additional paid in capital was mostly offset by net income of $176 million for the nine months ended September 30, 2017.2020.
Liquidity and Capital Resources
We have historically satisfied our liquidity needs with cash flows from operations and funds available under our Revolving Credit Facility and securitization facilities. Our primary liquidity needs have been to service our debt and finance our working capital and capital expenditures, whichexpenditures. We currently expect to prioritize investing in our business and reducing indebtedness. Accordingly, as of November 3, 2020, we have historically satisfied with cash flows from operations and funds availablehad no outstanding borrowings under our revolving credit facilities and securitization facilities. In January 2017, the Company increased the borrowing capacity under its Revolving Credit Facility, from $815representing a reduction of $190 million as compared to $1,050 million.
We intend to use future cash flow primarily to acquirethe amount drawn on December 31, 2019. Additionally, we discontinued acquiring stock under our share repurchase program, pay dividends, fund acquisitions, enter into strategic relationshipsprograms in the first quarter of 2019 and reduce indebtedness. In February 2016,discontinued our quarterly dividend in the Company's Boardfourth quarter of Directors authorized a share repurchase program of up to $275 million of the Company’s common stock. In February 2017,2019.
We are significantly encumbered by our Board authorized a new share repurchase program of up to an additional $300 million of the Company's common stock. Repurchases under these programs may be made at management's discretion from time to time on the open market, pursuant to Rule 10b5-1 trading plans or privately negotiated transactions. The size and timing of these repurchases will depend on price, market and economic conditions, legal and contractual requirements and other factors. The repurchase programs have no time limit and may be suspended or discontinued at any time.debt obligations. As of September 30, 2017, the Company had repurchased and retired 132020, our total debt, excluding our securitization obligations, was $3,391 million shares of common stock for an aggregate of $275compared to $3,472 million under the February 2016 share repurchase program and $102 million under the February 2017 share repurchase program at a total weighted average market price of $29.07 per share.
Included in the 13 million shares of common stock repurchased to date, the Company repurchased 5.9 million shares of common stock for $178 million at a weighted average market price of $30.40 per share during the first nine months of 2017. As of September 30, 2017, approximately $198 million of authorization remains available for the repurchase of shares under the February 2017 share repurchase program.
During the period October 1, 2017 through November 1, 2017, we repurchased an additional 0.5 million shares at a weighted average market price of $33.11. Giving effect to these repurchases, we had approximately $181 million of remaining capacity authorized under the February 2017 share repurchase program as of November 1, 2017.
In April 2007, the Company established a standby irrevocable letter of credit for the benefit of Avis Budget Group in accordance with the Separation and Distribution Agreement. The letter of credit was utilized to support the Company’s payment obligations with respect to its share of Cendant contingent and other corporate liabilities. In September 2017, the standby irrevocable letter of credit was terminated pursuant to the governing agreement as the aggregate value of the Cendant contingent and other liabilities fell below $30 million with the resolution of a Cendant legacy tax matter in the third quarter of 2017, reducing the capacity and outstanding letters of credit under the Unsecured Letter of Credit Facility. At September 30, 2017, the aggregate value of the former parent contingent liabilities was $18 million.
We also initiated and paid a quarterly cash dividend of $0.09 per share in August 2016 and paid $0.09 per share cash dividends in every subsequent quarter. During the first nine months of 2017, we returned $37 million to stockholders through the payment of cash dividends. 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 agreement, and the indenture governing the Company’s outstanding debt securities, capital requirements and other factors that the Board of Directors deems relevant.
We may also from time to time seek to repurchase our outstanding notes through tender offers, open market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.
We are currently experiencing growth in the residential real estate market; however, if the residential real estate market or the economy as a whole does not continue to improve or weakens, our business, financial condition and liquidity may be materially adversely affected, including our ability to access capital and grow our business.
Historically, operating results and revenues for all of our businesses have been strongest in the second and third quarters of the calendar year. A significant portion of the expenses we incur in our real estate brokerage operations are related to


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marketing activities and commissions and therefore, are variable. However, many of our other expenses, such as interest payments, facilities costs and certain personnel-related costs, are fixed and cannot be reduced during a seasonal slowdown. Consequently, our debt balances are generally at their highest levels at or around the end of the first quarter of every year.
December 31, 2019. Our liquidity position has significantly improved but continuesbeen and is expected to continue to be negatively impacted by our remainingthe interest expense and wouldon our debt obligations, which could be adversely impacted by: (i) stagnation or a downturn of the residential real estate market, (ii)intensified by a significant increase in LIBOR (or any replacement rate) or ABR, or (iii)ABR.
Our nearest debt maturity is not until early 2023 (other than amortization payments under our inabilityTerm Loan B and Term Loan A Facilities) as we redeemed all of our outstanding 5.25% Senior Notes in June 2020 using the proceeds from our 7.625% Senior Secured Second Lien Notes, together with cash on hand.
In July 2020, Realogy Group entered into amendments to access the Senior Secured Credit Agreement and Term Loan A Agreement (referred to collectively herein as the “Amendments”), pursuant to which the senior secured leverage ratio (the financial covenant under such agreements) has been temporarily eased and certain other covenants have been temporarily tightened during the covenant period. See Note 5, "Short and Long-Term Debt", to the Condensed Consolidated Financial Statements for additional information.
At September 30, 2020, we were in compliance with the financial covenant in each of the Senior Secured Credit Agreement and the Term Loan A Agreement with a senior secured leverage of 2.29 to 1.00 (as compared to the maximum ratio permitted of 6.50 to 1.00) with secured debt (net of readily available cash) of $1,654 million and trailing four relocation securitization programs.quarters EBITDA calculated on a Pro Forma Basis (as those terms are defined in the Senior Secured Credit Agreement) of $721 million.
We believe that we will continue to be in compliance with the senior secured leverage ratio and meet our cash flow needs during the next twelve months.
For additional information, see below under the header "Financial Obligations—Covenants under the Senior Secured Credit Facility, Term Loan A Facility and Indentures".
We will continue to evaluate potential refinancing and financing transactions.transactions, subject to the Amendments during the covenant period, including refinancing certain tranches of our indebtedness and extending maturities, among other potential alternatives, such public or private placements of our common stock or preferred stock (either of which could, among other things, dilute our current stockholders and materially and adversely affect the market price of our common stock). There can be no assurance as to which, if any, of these alternatives we may pursue as the choice of any alternative will depend upon numerous factors such as market conditions, our financial performance and the limitations applicable to such transactions under our existing financing agreements and the consents we may need to obtain under the relevant documents. There can be no assurance that financing willFinancing may not be available to us on commercially reasonable terms, on terms that are acceptable termsto us, or at all. Any future indebtedness may impose various additional restrictions and covenants on us which could limit our ability to respond to market conditions, to make capital investments or to take advantage of business opportunities.
Cash Flows
At September 30, 2017, we had $348 million of cash and cash equivalents, an increase of $74 million comparedSubject to the balancerestrictions against voluntary payments of $274 million at December 31, 2016. The following table summarizes our cash flows for the nine months ended September 30, 2017 and 2016:
 Nine Months Ended September 30,
 2017 2016 Change
Cash provided by (used in):     
Operating activities$444
 $411
 $33
Investing activities(96) (163) 67
Financing activities(276) (438) 162
Effects of change in exchange rates on cash and cash equivalents2
 (1) 3
Net change in cash and cash equivalents$74
 $(191) $265
For the nine months ended September 30, 2017, $33 million more cash was provided by operating activities comparedjunior debt that apply to the same period in 2016. The change was principally due to $14 million of additional cash provided by operating results, $15 million less cash used for accounts payable, accrued expenses and other liabilities and $19 million more cash received as dividends from unconsolidated entities primarily from PHH Home Loans, partially offset by $13 million more cash used due to an increase in other assets.
For the nine months ended September 30, 2017, we used $67 million less cash for investing activities compared to the same period in 2016 primarily due to $82 million less cash used for acquisition related payments and $22 million more cash provided by other investing activities, partially offset by $34 million of cash used for our investment in Guaranteed Rate Affinity and $8 million more cash used for property and equipment additions.
For the nine months ended September 30, 2017, $276 million of cash was used for financing activities compared to $438 million of cash usedus during the samecovenant period in 2016. For the nine months ended September 30, 2017, $276 million of cash was used for:
$180 million for the repurchase of our common stock;
$37 million of dividend payments;
$31 million of quarterly amortization payments on the term loan facilities;
$19 million of other financing payments primarily related to capital leases and interest rate swaps;
$18 million for payments of contingent consideration;
$11 million of tax payments related to net share settlement for stock-based compensation;
$10 million repayment of borrowings under the Revolving Credit Facility; and
$6 million of debt issuance costs;
partially offset by,
a $29 million net decrease in securitization borrowings; and
•$7 million proceedsAmendments, we may from exercise of stock options.
For the nine months ended September 30, 2016, $438 million of cash was used for financing activities as a result of:

time to time seek to repurchase our outstanding Unsecured Notes or 7.625% Senior Secured Second Lien Notes through tender offers, open market purchases, privately negotiated transactions or otherwise. Such


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repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.
Under the repayment of $758 million to reduceAmendments, we are restricted from making certain restricted payments, including dividend payments or share repurchases during the Term Loan B facility;
covenant period. The covenants in the repayment of $500 million to retireindentures governing the 3.375% Senior Notes at maturity;
the net repayment of $45 million of borrowings under the Revolving Credit Facility;
$134 million for the purchase of our common stock;
$31 million of amortization payments on the term loan facilities;
$23 million for payments of contingent consideration; and
$28 million of other financing payments partially related to capital leases and interest rate swaps;
$15 million of debt issuance costs;
$13 million of dividend payments; and
$6 million of tax payments related to net share settlement for stock-based compensation;
partially offset by,
$750 million of proceeds from the issuance of $250 million of 5.25%9.375% Senior Notes and $500 million of 4.875%7.625% Senior Notes;
$355 million of proceeds from issuance of the Term Loan A-1 facility; and
a $9 million net increaseSecured Second Lien Notes further restrict our ability to make dividend payments or repurchase shares in securitization borrowings.
Financial Obligations
Indebtedness Table
As of September 30, 2017, the Company’s borrowing arrangements were as follows:
 Interest
Rate		 Expiration
Date		 Principal Amount Unamortized Discount and Debt Issuance Costs Net Amount
Senior Secured Credit Facility:         
Revolving Credit Facility (1)(2) October 2020 $190
 $ *
 $190
Term Loan B(3) July 2022 1,086
 21
 1,065
Term Loan A Facility:         
Term Loan A(4) October 2020 397
 2
 395
Term Loan A-1(5) July 2021 344
 3
 341
Senior Notes4.50% April 2019 450
 7
 443
Senior Notes5.25% December 2021 550
 4
 546
Senior Notes4.875% June 2023 500
 4
 496
Securitization obligations: (6)         
        Apple Ridge Funding LLC (7)  June 2018 223
 *
 223
        Cartus Financing Limited (8)  August 2018 11
 *
 11
Total (9)$3,751
 $41
 $3,710
_______________
*The debt issuance costs related to our Revolving Credit Facility and securitization obligations are classified as a deferred financing asset within other assets.
(1)As of September 30, 2017, the Company had $1,050 million of borrowing capacity under its Revolving Credit Facility leaving $860 million of available capacity. The revolving credit facility expires in October 2020, but is classified on the balance sheet as current due to the revolving nature of the facility. On November 1, 2017, the Company had $70 million in outstanding borrowings under the Revolving Credit Facility, leaving $980 million of available capacity.
(2)Interest rates with respect to revolving loans under the Senior Secured Credit Facility at September 30, 2017 are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended September 30, 2017.
(3)
The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B is based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) JPMorgan Chase Bank, N.A.’s prime rate ("ABR") plus 1.25% (with an ABR floor of 1.75%).
(4)The Term Loan A provides for quarterly amortization payments, which commenced March 31, 2016, totaling per annum 5%, 5%, 7.5%, 10.0% and 12.5% of the original principal amount of the Term Loan A in 2016, 2017, 2018, 2019 and 2020, respectively. The


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interest rates with respect to term loans under the Term Loan A are based on, atany amount until the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior securedconsolidated leverage ratio the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended September 30, 2017.
(5)The Term Loan A-1 provides for quarterly amortization payments, which commenced on September 30, 2016, totaling per annum 2.5%, 2.5%, 5%, 7.5% and 10.0% of the original principal amount of the Term Loan A-1, with the last amortization payment made on June 30, 2021. The interest rates with respect to term loans under the Term Loan A-1 are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended September 30, 2017.
(6)Available capacity is subject to maintaining sufficient relocation related assets to collateralize these securitization obligations.
(7)In June 2017, Realogy Group extended the existing Apple Ridge Funding LLC securitization program utilized by Cartus until June 2018. As of September 30, 2017, the Company had $325 million of borrowing capacity under the Apple Ridge Funding LLC securitization program leaving $102 million of available capacity.
(8)Consists of a £10 million revolving loan facility and a £5 million working capital facility. As of September 30, 2017, the Company had $20 million of borrowing capacity under the Cartus Financing Limited securitization program leaving $9 million of available capacity. In September 2017, Realogy Group extended the existing Cartus Financing Limited securitization program to August 2018.
(9)Not included in this table, is the Company's Unsecured Letter of Credit Facility which had a capacity of $74 million with $71 million utilized at a weighted average rate of 3.24% at September 30, 2017.
is below 4.00 to 1.00. See Note 5, "Short and Long-Term Debt", to the Condensed Consolidated Financial Statements for additional information.
In addition, we are required to pay quarterly amortization payments for the Term Loan A and Term Loan B facilities. Remaining payments for 2020 total $9 million and $3 million for the Term Loan A and Term Loan B facilities, respectively, and we expect payments for 2021 to total $51 million and $11 million for the Term Loan A and Term Loan B facilities, respectively.
If the recovery of the residential real estate market were to materially slow or reverse itself, if the economy as a whole does not improve or continues to weaken or if the broader real estate industry (including REITs, commercial and rental markets) were to experience a significant downtown, our business, financial condition and liquidity may be materially adversely affected, including our ability to access capital, grow our business and return capital to stockholders.
Cash Flows
At September 30, 2020, we had $380 million of cash, cash equivalents and restricted cash, an increase of $145 million compared to the balance of $235 million at December 31, 2019. The following table summarizes our cash flows from continuing operations for the nine months ended September 30, 2020 and 2019:
 Nine Months Ended September 30,
 20202019Change
Cash provided by (used in) activities from continuing operations:
Operating activities$398 $250 $148 
Investing activities(75)(79)4 
Financing activities(130)(102)(28)
For the nine months ended September 30, 2020, $148 million more cash was provided by operating activities from continuing operations compared to the same period in 2019 principally due to:
•$101 million less cash used for accounts payable, accrued expenses and other liabilities;
•$57 million more cash dividends received primarily from Guaranteed Rate Affinity; and
•$19 million less cash used for other assets,
partially offset by:
•$13 million less cash provided by the net change in trade receivables; and
•$13 million more cash used for other operating activities; and
•$3 million less cash provided by operating results.
For the nine months ended September 30, 2020, we used $4 million less cash for investing activities from continuing operations compared to the same period in 2019 primarily due to:
•$11 million less cash used for property and equipment additions; and
•$8 million less cash used for investments in unconsolidated entities,
partially offset by $15 million more cash used for other investing activities primarily due to the reinvestment of certificates of deposit.
For the nine months ended September 30, 2020, $130 million of cash was used in financing activities from continuing operations compared to $102 million of cash used during the same period in 2019. For the nine months ended September 30, 2020, $130 million of cash was used as follows:
•$50 million repayment of borrowings under the Revolving Credit Facility;
•$31 million of quarterly amortization payments on the term loan facilities;

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•$22 million of other financing payments primarily related to finance leases;
•$21 million of cash paid primarily as a result of the refinancing transactions in the second quarter of 2020; and
•$5 million of tax payments related to net share settlement for stock-based compensation.
For the nine months ended September 30, 2019, $102 million of cash was used in financing activities from continuing operations related to:
•$31 million of dividend payments;
•$22 million of quarterly amortization payments on the term loan facilities;
•$20 million for the repurchase of our common stock;
•$18 million of other financing payments primarily related to finance leases;
•$6 million of tax payments related to net share settlement for stock-based compensation; and
•$5 million repayment of borrowings under the Revolving Credit Facility,
partially offset by $3 million of net cash received as a result of the refinancing transactions in 2019.
Financial Obligations
See Note 5, "Short and Long-Term Debt", to the Condensed Consolidated Financial Statements, for information on the Company's indebtedness.indebtedness as of September 30, 2020.
LIBOR Transition
In July 2017, the Financial Conduct Authority, the UK regulator responsible for the oversight of the London Interbank Offering Rate ("LIBOR"), announced that it would no longer require banks to participate in the LIBOR submission process and would cease oversight over the rate after the end of 2021. Various industry groups continue to discuss replacement benchmark rates, the process for amending existing LIBOR-based contracts, and the potential economic impacts of different alternatives. For example, in the U.S., a proposed replacement benchmark rate is the Secured Overnight Funding Rate (SOFR), which is an overnight rate based on secured financing, although uncertainty exists as to the transition process and broad acceptance of SOFR as the primary alternative to LIBOR.
Our primary interest rate exposure is interest rate fluctuations, specifically with respect to LIBOR, due to its impact on our variable rate borrowings under the Senior Secured Credit Facility (for our Revolving Credit Facility and Term Loan B) and the Term Loan A Facility (for our Term Loan A). As of September 30, 2020, we had interest rate swaps based on LIBOR with a notional value of $1.0 billion to manage a portion of our exposure to changes in interest rates associated with our variable rate borrowings.
At this time, it is not possible to predict the effect of any changes to LIBOR, any phase out of LIBOR or any establishment of alternative benchmark rates. LIBOR may disappear entirely or perform differently than in the past. Any new benchmark rate will likely not replicate LIBOR exactly and if future rates based upon a successor rate (or a new method of calculating LIBOR) are higher than LIBOR rates as currently determined, it could result in an increase in the cost of our variable rate indebtedness and may have a material adverse effect on our financial condition and results of operations.
Covenants under the Senior Secured Credit Facility, Term Loan A Facility and Indentures
The Senior Secured Credit Facility,Agreement, Term Loan A Facility, the Unsecured Letter of Credit FacilityAgreement, and the indentures governing the Unsecured Notes and 7.625% Senior Secured Second Lien Notes contain various covenants that limit (subject to certain exceptions) Realogy Group’s ability to, among other things:
•incur or guarantee additional debt or issue disqualified stock or preferred stock;
•pay dividends or make distributions to Realogy Group’s stockholders, including Realogy Holdings;
•repurchase or redeem capital stock;
•make loans, investments or acquisitions;
•incur restrictions on the ability of certain of Realogy Group's subsidiaries to pay dividends or to make other payments to Realogy Group;
•enter into transactions with affiliates;
•create liens;

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•merge or consolidate with other companies or transfer all or substantially all of Realogy Group's and its material subsidiaries' assets;
•transfer or sell assets, including capital stock of subsidiaries; and
•prepay, redeem or repurchase subordinated indebtedness.
Pursuant to the Amendments to the Senior Secured Credit Agreement and Term Loan A Agreement, certain of these restrictions were tightened, including reducing (or eliminating) the amount available for certain types of additional indebtedness, liens, restricted payments (including dividends and stock repurchases), investments (including acquisitions and joint ventures), and voluntary junior debt repayments. Under the Amendments, we are permitted during the covenant period to obtain up to $50 million of additional credit facilities on a combined basis (less any amounts previously incurred under this provision) from lenders reasonably satisfactory to the administrative agent and us, without the consent of the existing lenders under the Senior Secured Credit Agreement or Term Loan A Agreement. In addition, during the covenant period under the Amendments, our ability to issue senior secured or unsecured notes is limited to the use of financings junior to our first lien debt to refinance the Unsecured Notes or 7.625% Senior Secured Second Lien Notes.
As a result of the covenants to which we remain subject, we are limited in the manner in which we conduct our business and we may be unable to engage in favorable business activities or finance future operations or capital needs. In addition, the Senior Secured Credit FacilityAgreement and Term Loan A FacilityAgreement require us to maintain a senior secured leverage ratio. We are further restricted under the indentures governing the 9.375% Senior Notes and 7.625% Senior Secured Second Lien Notes from making restricted payments, including our ability to issue dividends in excess of $45 million per calendar year or our ability to repurchase shares in any amount for so long as our consolidated leverage ratio is equal to or greater than 4.00 to 1.00 and then (unless that ratio falls below 3.00 to 1.00) only to the extent of available cumulative credit, as defined under those indentures.
Senior Secured Leverage Ratio applicable to our Senior Secured Credit Facility and Term Loan A Facility
The senior secured leverage ratio is tested quarterly and mayquarterly. Prior to the Amendments, the senior secured leverage ratio could not exceed 4.75 to 1.00. Pursuant to the Amendments, the financial covenant contained in each of the Senior Secured Credit Agreement and Term Loan A Agreement has been amended to require that Realogy Group maintain a senior secured leverage ratio not to exceed 6.50 to 1.00 commencing with the third quarter of 2020 through and including the second quarter of 2021 and thereafter will step down on a quarterly basis to 4.75 to 1.00 (which was the applicable level prior to the effectiveness of the Amendments) on and after the second quarter of 2022.
The senior secured leverage ratio is measured by dividing Realogy's GroupRealogy Group's total senior secured net debt by the trailing twelve monthfour quarters EBITDA calculated on a Pro Forma Basis, as those terms are defined in the senior secured credit facilities.Senior Secured Credit Agreement. Total senior secured net debt does not include the 7.625% Senior Secured Second Lien Notes, our unsecured indebtedness, including the Unsecured Notes, or the securitization obligations. EBITDA calculated on a Pro Forma Basis, as defined in the senior secured credit facilities,Senior Secured Credit Agreement, includes adjustments to EBITDA for restructuring, retention and disposition costs, former parent legacy cost (benefit) items, net, loss (gain) on the early extinguishment of debt, non-cash charges and incremental securitization interest costs, as well as pro forma cost savings for restructuring initiatives, the pro forma effect of business optimization initiatives and the pro forma effect of acquisitions and new franchisees, in each case calculated as of the beginning of the twelve-monthtrailing four-quarter period. The Company was in compliance with the senior secured leverage ratio covenant at September 30, 2017.

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A reconciliation of net loss attributable to Realogy Group to Operating EBITDA including discontinued operations, Operating EBITDA and EBITDA calculated on a Pro Forma Basis, as those terms are defined in the Senior Secured Credit Agreement, for the four-quarter period ended September 30, 2020 is set forth in the following table:
LessEqualsPlusEquals
Year EndedNine Months EndedThree Months EndedNine Months EndedTwelve Months
Ended
December 31,
2019		September 30,
2019		December 31,
2019		September 30,
2020		September 30,
2020
Net loss attributable to Realogy Group (a)$(188)$(143)$(45)$(378)$(423)
Income tax benefit(22)(22)— (67)(67)
Loss before income taxes(210)(165)(45)(445)(490)
Depreciation and amortization169 126 43 134 177 
Interest expense, net249 209 40 208 248 
Restructuring costs, net42 29 13 38 51 
Impairments249 243 6 460 466 
Former parent legacy cost, net1 1 — 1 1 
(Gain) loss on the early extinguishment of debt(5)(5)— 8 8 
Adjustments attributable to discontinued operations (b)95 26 69 116 185 
Operating EBITDA including discontinued operations (c)590 464 126 520 646 
Less: Contribution to Operating EBITDA from discontinued operations (d)9 
Operating EBITDA637
Bank covenant adjustments:
Pro forma effect of business optimization initiatives (e)49 
Non-cash charges (f)29 
Pro forma effect of acquisitions and new franchisees (g)6 
EBITDA as defined by the Senior Secured Credit Agreement$721 
Total senior secured net debt (h)$1,654 
Senior secured leverage ratio2.29 x
_______________
(a)Net loss attributable to Realogy consists of: (i) loss of $45 million for the fourth quarter of 2019, (ii) loss of $462 million for the first quarter of 2020, (iii) loss of $14 million for the second quarter of 2020 and (iv) income of $98 million for the third quarter of 2020.
(b)Includes depreciation and amortization, interest expense, income tax and restructuring charges related to discontinued operations. In addition, includes the adjustment to record assets and liabilities held for sale at the lower of carrying value or fair value less any costs to sell based on a market price that is reasonable in relation to fair value.
(c)Consists of Operating EBITDA including discontinued operations of: (i) $126 million for the fourth quarter of 2019, (ii) $32 million for the first quarter of 2020, (iii) $175 million for the second quarter of 2020 and (iv) $313 million for the third quarter of 2020.
(d)Pursuant to the Amendments, the definition of "Consolidated Net Income" (as defined in the Senior Secured Credit Agreement) should be adjusted for discontinued operations (pending divestiture) solely for purposes of calculating compliance with the senior secured leverage ratio. Such adjustment is not reflected in the calculation above for consistency with the presentation of Consolidated Leverage Ratio in the "Consolidated Leverage Ratio applicable to our 9.375% Senior Notes and 7.625% Senior Secured Second Lien Notes" on the next page. Had discontinued operations been included for the four-quarter period ended September 30, 2020, the senior secured leverage ratio for the four-quarter period ended September 30, 2020 would have been 2.24x.
(e)Represents the four-quarter pro forma effect of business optimization initiatives.
(f)Represents the elimination of non-cash expenses including $24 million of stock-based compensation expense, $4 million for the change in the allowance for doubtful accounts and notes reserves and $1 million of other items for the four-quarter period ended September 30, 2020.
(g)Represents the estimated impact of acquisitions and franchise sales activity, net of brokerages that exited our franchise system as if these changes had occurred on October 1, 2019. Franchisee sales activity is comprised of new franchise agreements as well as growth through acquisitions and independent sales agent recruitment by existing franchisees with our assistance. We have made a number of assumptions in calculating such estimates and there can be no assurance that we would have generated the projected levels of Operating EBITDA had we owned the acquired entities or entered into the franchise contracts as of October 1, 2019.

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(h)Represents total borrowings under the Senior Secured Credit Facility (including the Revolving Credit Facility and Term Loan B Facility) and Term Loan A Facility and borrowings secured by a first priority lien on our assets of $1,884 million plus $33 million of finance lease obligations less $263 million of readily available cash as of September 30, 2020. Pursuant to the terms of our senior secured credit facilities, total senior secured net debt does not include our securitization obligations, 7.625% Senior Secured Second Lien Notes or unsecured indebtedness, including the Unsecured Notes.
Consolidated Leverage Ratio applicable to our 9.375% Senior Notes and 7.625% Senior Secured Second Lien Notes
The consolidated leverage ratio is measured by dividing Realogy Group's total net debt by the trailing four quarter EBITDA. EBITDA, as defined in the indentures governing the 9.375% Senior Notes and 7.625% Senior Secured Second Lien Notes, is substantially similar to EBITDA calculated on a Pro Forma Basis, as those terms are defined in the Senior Secured Credit Agreement; however, the indentures do not allow for the adjustment to Consolidated Net Income (as defined in the indentures) described in footnote (d) to the table set forth above under "Senior Secured Leverage Ratio applicable to our Senior Secured Credit Facility and Term Loan A Facility." Net debt under the indentures is Realogy Group's total indebtedness (excluding securitizations) less (i) its cash and cash equivalents in excess of restricted cash and (ii) a $200 million seasonality adjustment permitted when measuring the ratio on a date during the period of March 1 to May 31.
The consolidated leverage ratio under the indentures governing the 9.375% Senior Notes and 7.625% Senior Secured Second Lien Notes for the four-quarter period ended September 30, 2020 is set forth in the following table:
As of September 30, 2020
Revolver$140 
Term Loan A694 
Term Loan B1,050 
7.625% Senior Secured Second Lien Notes550 
4.875% Senior Notes407 
9.375% Senior Notes550 
Finance lease obligations33 
Corporate Debt (excluding securitizations)3,424 
Less: Cash and cash equivalents379 
Net debt under the indentures governing the 9.375% Senior Notes and 7.625% Senior Secured Second Lien Notes$3,045 
EBITDA as defined under the indentures governing the 9.375% Senior Notes and 7.625% Senior Secured Second Lien Notes (a)$721 
Consolidated leverage ratio under the indentures governing the 9.375% Senior Notes and 7.625% Senior Secured Second Lien Notes4.2x
_______________
(a)As set forth in the immediately preceding table, for the four-quarter period ended September 30, 2020, EBITDA, as defined under the indentures governing the 9.375% Senior Notes and 7.625% Senior Secured Second Lien Notes, was the same as EBITDA calculated on a Pro Forma Basis, as those terms are defined in the Senior Secured Credit Agreement.
See Note 5, "Short and Long-Term Debt—Senior Secured Credit Facility"Facility and "Short and Long-Term Debt—Term Loan A Facility" and "—Unsecured Notes" and "—Senior Secured Second Lien Notes", to the Condensed Consolidated Financial Statements for additional information.
At September 30, 2020 the amount of the Company's cumulative credit under the 9.375% Senior Notes and 7.625% Senior Secured Second Lien Notes was approximately $172 million. Under the terms of the indentures governing the 9.375% Senior Notes and 7.625% Senior Secured Second Lien Notes, the Company may utilize its cumulative credit to make restricted payments when the Company's consolidated leverage ratio is less than 4.00 to 1.00, provided that any such restricted payments will reduce the amount of cumulative credit available for future restricted payments. The Company made approximately $21 million in dividend payments in 2019 after the issuance of the 9.375% Senior Notes (but prior to the issuance of the 7.625% Senior Secured Second Lien Notes) and accordingly at September 30, 2020, the cumulative credit basket available for restricted payments was approximately $151 million under the indenture governing the 9.375% Senior Notes and approximately $172 million under the indenture governing 7.625% Senior Secured Second Lien Notes. However, neither of these baskets may generally be utilized until the Company's consolidated leverage ratio is less than 4.0 to 1.0. In any event, during the covenant period under the Amendments to the Senior Secured Credit Facility and Term Loan A Facility, the Company is generally restricted from making restricted payments.

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Non-GAAP Financial Measures
The SEC has adopted rules to regulate the use in filings with the SEC and in public disclosures of "non-GAAP financial measures," such as EBITDA and Operating EBITDA. These measures are derived on the basis of methodologies other than in accordance with GAAP.
Operating EBITDA is defined by us as net income (loss) before depreciation and amortization, interest expense, net, (other than relocation services interest for securitization assets and securitization obligations) and income taxes, and is our primary non-GAAP measure. Operating EBITDA is defined by usother items that are not core to the operating activities of the Company such as EBITDA before restructuring losscharges, former parent legacy items, gains or losses on the early extinguishment of debt, impairments, gains or losses on discontinued operations and former parent legacy items andgains or losses on the sale of investments or other assets. Operating EBITDA is used as a supplementary financialour primary non-GAAP measure.
We present EBITDA and Operating EBITDA because we believe they areit is useful as a supplemental measuresmeasure in evaluating the performance of our operating businesses and provideprovides greater transparency into our results of operations. Our management, including our chief operating decision maker, uses Operating EBITDA as a factor in evaluating the performance of our business. EBITDA and Operating EBITDA should not be considered in isolation or as a substitute for net income or other statement of operations data prepared in accordance with GAAP.
We believe Operating EBITDA facilitates company-to-company operating performance comparisons by backing out potential differences caused by variations in capital structures (affecting net interest expense), taxation, the age and book depreciation of facilities (affecting relative depreciation expense) and the amortization of intangibles, as well as other items that are not core to the operating activities of the Company such as restructuring charges, gains or losses on the early extinguishment of debt, former parent legacy items, impairments, gains or losses on discontinued operations and gains or losses on the sale of investments or other assets, which may vary for different companies for reasons unrelated to operating performance. We further believe that Operating EBITDA is frequently used by securities analysts, investors and other interested parties in their evaluation of companies, many of which present an Operating EBITDA measure when reporting their results.
EBITDA and Operating EBITDA havehas limitations as an analytical tools,tool, and you should not consider EBITDA and Operating EBITDA either in isolation or as substitutesa substitute for analyzing our results as reported under GAAP. Some of these limitations are:
these measures do•this measure does not reflect changes in, or cash required for, our working capital needs;
these measures do•this measure does not reflect our interest expense (except for interest related to our securitization obligations), or the cash requirements necessary to service interest or principal payments on our debt;
these measures do•this measure does not reflect our income tax expense or the cash requirements to pay our taxes;
these measures do•this measure does not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments;
•although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often require replacement in the future, and these measures dothis measure does not reflect any cash requirements for such replacements; and
•other companies may calculate these measuresthis measure differently so they may not be comparable.


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Set forth in the table below is a reconciliation of net income attributable to Realogy to EBITDA and Operating EBITDA forincluding discontinued operations includes Operating EBITDA, as defined above plus the three-month periods ended September 30, 2017 and 2016:Operating EBITDA contribution from discontinued operations on the same basis.
 Three Months Ended
 September 30, 2017 September 30, 2016
Net income attributable to Realogy$95
 $106
Income tax expense67
 74
Income before income taxes162
 180
Interest expense, net41
 37
Depreciation and amortization (a)51
 53
EBITDA254
 270
EBITDA adjustments:   
Restructuring costs2
 9
Former parent legacy cost, net1
 —
Loss on the early extinguishment of debt1
 —
Operating EBITDA$258
 $279
(a)Depreciation and amortization for the three months ended September 30, 2017 includes $1 million of amortization expense related to Guaranteed Rate Affinity's purchase accounting included in the "Equity in earnings of unconsolidated entities" line on the Condensed Consolidated Statement of Operations.
Contractual Obligations
AllOther than the Company's debt transactions which occurred during the second quarter of 2020, resulting in the issuance of $550 million of 7.625% Senior Secured Second Lien Notes due 2025 and the redemption of $550 million of 5.25% Senior Notes due 2021 as described in Note 5, "Short and Long-Term Debt", included elsewhere in this Quarterly Report, the Company's future contractual obligations as of September 30, 20172020 have not changed materially from the amounts reported in our 20162019 Form 10-K.

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Critical Accounting Policies
In presenting our financial statements in conformity with generally accepted accounting principles, we are required to make estimates and assumptions that affect the amounts reported therein. Several of the estimates and assumptions we are required to make relate to matters that are inherently uncertain as they pertain to future events. However, events that are outside of our control cannot be predicted and, as such, they cannot be contemplated in evaluating such estimates and assumptions. If there is a significant unfavorable change to current conditions, it could result in a material adverse impact to our combined results of operations, financial position and liquidity. We believe that the estimates and assumptions we used when preparing our financial statements were the most appropriate at that time.
These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2016,2019, which includes a description of our critical accounting policies that involve subjective and complex judgments that could potentially affect reported results.
Impairment of goodwill and other indefinite-lived intangible assets
See Note 3, "Goodwill and Intangible Assets", to the Condensed Consolidated Financial Statements for a discussion on impairment of goodwill and other indefinite-lived intangible assets.
Recently Issued Accounting Pronouncements
The SEC issued its final rule on the Modernization of Regulation S-K Items 101, 103, and 105 which is intended to improve readability of disclosure documents, as well as discourage repetition and disclosure of information that is not material. The new rule amends disclosure requirements relating to the description of a company's business, legal proceedings and risk factors made in applicable registration statements and reports filed on and after November 9, 2020, including the Company's Annual Report on Form 10-K for the year ended December 31, 2020.
See Note 1, "Basis of Presentation", to the Condensed Consolidated Financial Statements for a discussion of recently issued FASB accounting pronouncements.
Item 3.    Quantitative and Qualitative Disclosures about Market Risks.
We are exposed to market risk from changes in interest rates primarily through our senior secured debt. At September 30, 2017,2020, our primary interest rate exposure was to interest rate fluctuations, specifically LIBOR, due to its impact on our variable rate borrowings of our Revolving Credit Facility and Term Loan B under the Senior Secured Credit AgreementFacility and the Term Loan A Facility. Given that our borrowings under the Senior Secured Credit AgreementFacility and Term Loan A Facility are generally based upon LIBOR, this rate (or any replacement rate) will be the Company's primary market risk exposure for the foreseeable future. We do not have significant exposure to foreign currency risk nor do we expect to have significant exposure to foreign currency risk in the foreseeable future.
We assess our market risk based on changes in interest rates utilizing a sensitivity analysis. The sensitivity analysis measures the potential impact on earnings, fair values and cash flows based on a hypothetical change (increase and


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decrease) in interest rates. We exclude the fair values of relocation receivables and advances and securitization borrowings from our sensitivity analysis because we believe the interest rate risk on these assets and liabilities is mitigated as the rate we earn on relocation receivables and advances and the rate we incur on our securitization borrowings are based on similar variable indices.
At September 30, 2017,2020, we had variable interest rate long-term debt fromoutstanding under our outstanding term loansSenior Secured Credit Facility and revolverTerm Loan A Facility of $2,017 million, which excludes $234 million of securitization obligations.$1.9 billion.  The weighted average interest rate on the outstanding term loansamounts under our Senior Secured Credit Facility and revolverTerm Loan A Facility at September 30, 20172020 was 3.36%2.62%. The interest rate with respect to the Term Loan B is based on adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%). The interest rates with respect to the Revolving Credit Facility and term loans under the Term Loan A Facility are based on adjusted LIBOR plus an additional margin subject to adjustment based on the current senior secured leverage ratio. Based on the September 30, 20172020 senior secured leverage ratio, the LIBOR margin was 2.00%. At September 30, 2017,2020, the one-month LIBOR rate was 1.23%0.15%; therefore, we have estimated that a 0.25% increase in LIBOR would have a $5$2 million impact on our annual interest expense.
We have entered into

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As of September 30, 2020, we had interest rate swaps with a notional value of $1,475 million$1.0 billion to manage a portion of our exposure to changes in interest rates associated with our $2,017 million$1.9 billion of variable rate borrowings. Interest rates swaps with a notional value of $600 million expired on August 7, 2020. Our interest rate swaps arewere as follows:
Notional Value (in millions)Commencement DateExpiration Date
$225450July 2012February 2018November 2017November 2022
$200400January 2013February 2018August 2020August 2025
$600150August 2015August 2020
$450November 2017November 2022November 2027
The swaps help protect our outstanding variable rate borrowings from future interest rate volatility. The fixed interest rates on the swaps range from 2.07% to 2.89%3.11%. The Company had a liability of $94 million for the fair value of the interest rate swaps of$24 million at September 30, 2017.2020.  The fair value of these interest rate swaps is subject to movements in LIBOR and will fluctuate in future periods.  We have estimated that a 0.25% increase in the LIBOR yield curve would increase the fair value of our interest rate swaps by $10$9 million and would decrease interest expense. While these results may be used as a benchmark, they should not be viewed as a forecast of future results.
Item 4.    Controls and Procedures.
Controls and Procedures for Realogy Holdings Corp.
(a)Realogy Holdings Corp. ("Realogy Holdings") maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its filings under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to its management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Realogy Holdings' management, including the Chief Executive Officer and the Chief Financial Officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
(b)As of the end of the period covered by this quarterly report on Form 10-Q, Realogy Holdings has carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that Realogy Holdings' disclosure controls and procedures are effective at the "reasonable assurance" level.
(c)There has not been any change in Realogy Holdings' internal control over financial reporting during the period covered by this quarterly report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.
(a)Realogy Holdings Corp. ("Realogy Holdings") maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its filings under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission and that such information is accumulated and communicated to its management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Realogy Holdings' management, including the Chief Executive Officer and the Chief Financial Officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
(b)As of the end of the period covered by this quarterly report on Form 10-Q, Realogy Holdings has carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that Realogy Holdings' disclosure controls and procedures are effective at the "reasonable assurance" level.
(c)There has not been any change in Realogy Holdings' internal control over financial reporting during the period covered by this quarterly report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.
Controls and Procedures for Realogy Group LLC
(a)
(a)Realogy Group LLC ("Realogy Group") maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its filings under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the periods specified in the rules and procedures that are designed to ensure that information required to be disclosed in its filings under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the periods specified in the rules and


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forms of the Securities and Exchange Commission. SuchCommission and that such information is accumulated and communicated to its management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Realogy Group's management, including the Chief Executive Officer and the Chief Financial Officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
(b)As of the end of the period covered by this quarterly report on Form 10-Q, Realogy Group has carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that Realogy Group's disclosure controls and procedures are effective at the "reasonable assurance" level.
(c)There has not been any change in Realogy Group's internal control over financial reporting during the period covered by this quarterly report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.
(b)As of the end of the period covered by this quarterly report on Form 10-Q, Realogy Group has carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that Realogy Group's disclosure controls and procedures are effective at the "reasonable assurance" level.
(c)There has not been any change in Realogy Group's internal control over financial reporting during the period covered by this quarterly report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

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Other Financial Information
The Condensed Consolidated Financial Statements as of September 30, 20172020 and for the three and nine-month periods ended September 30, 20172020 and 20162019 have been reviewed by PricewaterhouseCoopers LLP, an independent registered public accounting firm.  Their reports, dated November 3, 2017,5, 2020, are included on pages 4 and 5.  The reports of PricewaterhouseCoopers LLP state that they did not audit and they do not express an opinion on that unaudited financial information.  Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied.  PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933 (the "Act") for their report on the unaudited financial information because that report is not a "report" or a "part" of the registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act.



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PART II - OTHER INFORMATION
Item 1.    Legal Proceedings.
See Note 9, "Commitments and Contingencies—Litigation", to the Condensed Consolidated Financial Statements included elsewhere in this Reportquarterly report on Form 10-Q for additional information on the Company's legal proceedings including a description of the Dodge, et al. v. PHH Corporation, et al. litigation, which we refer to as the Strader legal matter..
The Company believes that it has adequately accrued for legal matters as appropriate. The Company records litigation accruals for legal matters which are both probable and estimable.
Litigation and other disputes are inherently unpredictable and subject to substantial uncertainties and unfavorable resolutions could occur.occur and even cases brought by us can involve counterclaims asserted against us. In addition, litigation and other legal matters, including class action lawsuits orand regulatory proceedings challenging practices that have broad impact can be costly to defend and, depending on the class size and claims, could be costly to settle. As such, the Company could incur judgments or enter into settlements of claims with liability that are materially in excess of amounts accrued and these settlements could have a material adverse effect on the Company’s financial condition, results of operations or cash flows in any particular period.
Litigation, investigations and claims against other participants in the residential real estate industry may impact the Company and its affiliated franchisees when the rulings or settlements in those cases cover practices common to the broader industry.industry and which may generate litigation for the Company.  Examples may include claims associated with RESPA compliance (including, but not limited to, those related to the broker-to-broker exception, marketing agreements or consumer rebates), broker fiduciary duties, andmultiple listing service practices, sales agent classification. One such caseclassification and federal and state fair housing laws. For example, there is PHH Corp. vs. Consumer Financial Protection Bureau, No. 15-1177. On October 11, 2016,active worker classification litigation in New Jersey against a three-judge panel of the United States Court of Appeals for the D.C. Circuit issued a decision in that case addressing the constitutionality of the CFPB's structure as a single-Director independent agencycompeting residential real estate brokerage where the CFPB Director can onlyplaintiff seeks to reclassify independent sales agents as employees, from which the Company could be removed by the President of the U.S. for "cause" as well as various important RESPA issues, including that: (1) Section 8(c)(2) of RESPA (which permits “bona fide” payments for goods and services actually performed), remains a viable exception under RESPA and does not constitute a payment for a referral in violation of RESPA where the amount paid does not exceed the reasonable market value of the goods or services; (2) new CFPB interpretations of RESPA cannot be enforced on a retroactive basis whereimpacted if there is reliance on prior regulatory interpretations; and (3) the CFPB is bound by the three-year statute of limitations for government enforcement of RESPA. On February 16, 2017, the full D.C. Circuit Court of Appeals agreed to hear an appeal of the October 11, 2016 decision and vacated that decision pending the appeal. Oral arguments were held on May 24, 2017. A decision from the full D.C. Circuit Court is pending.
adverse ruling. The Company also may be impacted by litigation and other claims against companies in other industries. Rulings on matters such asFor example, there have been several challenges to the enforcementconstitutionality and enforceability of arbitration and class waiver agreements anda California worker classification may adversely affectstatute adopted in 2019 as it applies to other industries, which could potentially result in the Companystatute being found unconstitutional and otherof no force - which could have the effect of eliminating that statute's less restrictive test applicable to real estate professionals in that state. Changes in current legislation, regulations or interpretations that are applicable to the residential real estate service industry participants as a resultmay also impact the Company.
Item 1A. Risk Factors
Other than the risk factors disclosed in Part II, "Item 1A. Risk Factors" of our Quarterly Report on Form 10-Q for the classificationquarter ended June 30, 2020, which is hereby incorporated by reference into this Part II, "Item 1A. Risk Factors" of sales associates as independent contractors, irrespective of the fact that the parties subjectthis Form 10-Q, there were no material changes to the rulings arerisk factors reported in a different industry.  To the extent the defendants are unsuccessfulPart 1, "Item 1A. Risk Factors" in these types of litigation matters, and we or our franchisees cannot distinguish our or their practices (or our industry’s practices), we and our franchisees could face significant liability and could be required to modify certain business relationships, either of which could materially and adversely impact our financial condition and results of operations. There also are changing employment-related regulatory interpretations at both the federal and state levels that could create risks around historic practices and that could require changes in business practices, both for us and our franchisees.2019 Form 10-K.
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.
(c)The following table sets forth information relating to repurchase of shares of our common stock during the quarter ended September 30, 2017:
Period Total Number of Shares Purchased Average Price Paid per Share 
Total Number of Shares Purchased as Part of a Publicly Announced Programs (1)
 
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs (1)
July 1 - 31, 2017 452,691
 $33.14 452,691
 $241,402,984
August 1 - 31, 2017 516,900
 $34.33 516,900
 $223,657,807
September 1 - 30, 2017 (2)
 759,600
 $33.91 759,600
 $197,899,771
_______________
(1)In February 2016, the Company's Board of Directors authorized a share repurchase program of up to $275 million of the


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Company’s common stock. As of April 30, 2017, all of the capacity under this program had been utilized. In February 2017, our Board authorized a new share repurchase program of up to an additional $300 million of the Company's common stock. Repurchases under these programs may be made at management's discretion from time to time on the open market, pursuant to Rule 10b5-1 trading plans or privately negotiated transactions. The size and timing of these repurchases will depend on price, market and economic conditions, legal and contractual requirements and other factors. The repurchase programs have no time limit and may be suspended or discontinued at any time. All of the repurchased common stock has been retired.
(2)Includes 77,900 of shares purchased for which the trade date occurred in late September 2017 while settlement occurred in October 2017.
During the period October 1, 2017 through November 1, 2017, we repurchased an additional 0.5 million shares at a weighted average market price of $33.11. Giving effect to these repurchases, we had approximately $181 million of remaining capacity authorized under the February 2017 share repurchase program as of November 1, 2017.
Item 5. Other Information.
On November 2, 2017,3, 2020, the Compensation Committee of the Board of Directors of Realogy Holdings Corp. (the “Board”“Committee”) approved the Fourth Amended and Restated Bylaws of the Company granted a cash-based performance incentive and retention award (the “Bylaws”“Performance Award”), which include amendments to:
•remove certain provisions that are inapplicable following under the Company’s de-classification2018 Long-Term Incentive Plan to the Company’s Chief Executive Officer & President (the “CEO”). Performance conditions apply to 75% of the Board;award, with the remaining portion time-based vesting. In granting the award, the Committee considered multiple factors, including Mr. Schneider’s executive management and leadership expertise, the broad scope of Mr. Schneider’s responsibilities and the critical role he plays in setting and executing the Company’s business strategy, his outstanding performance with the challenges presented during 2020, and the potential business disruption likely to be caused by a loss of his services.
add the positions of ChairmanThe performance component of the BoardPerformance Award has two tranches, each based on market share growth (as measured by our transaction volume for existing home sale transactions). The first tranche will be earned if our market share as of September 30, 2022 exceeds market share as of September 30, 2020 and Lead Independent Directorthe second tranche will be earned if our market share as of September 30, 2023 exceeds market share as of September 30, 2022 (each, a “Performance Period”), with each tranche equal to Article III (Board of Directors)$1.5 million. No amount will be earned under a tranche if the performance metric for the applicable Performance Period is not satisfied, except as stated herein.
The CEO generally must remain employed with the Company throughout the applicable Performance Period in order to be eligible to receive a payout of the Bylaws and make related ancillary changes; and
align statutory officer positions in Article IV (Officers) with Company practice, including the eliminationperformance component of the statutory officer rolesapplicable Performance Award tranche. If the CEO’s

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employment is terminated without cause or due to his death or disability during the applicable Performance Period, he will be eligible to receive a pro-rata amount of the performance portion of his Performance Award based on actual performance.
In order to be eligible to receive a payout of the retention portion of the Performance Award in the amount of $1.0 million, the CEO generally must remain employed with the Company from the date of grant through September 30, 2021. If terminated in connection with a change in control, he would be entitled to full payout of any outstanding retention or performance component of the Performance Award.
Our Clawback Policy will apply to both the performance and Chief Accounting Officer,retention portions of the Performance Award, which will allow our Board of Directors to recoup incentive compensation in the event of a material restatement or adjustment of our financial statements, misconduct, or breach of the CEO’s restrictive covenants with the Company, including those related to non-competition and make related ancillary changes.non-solicitation.
The foregoing description of the amendments to the BylawsPerformance Award set forth above is qualified in its entirety by reference to the Bylaws, which are attachedPerformance Award filed as Exhibit 10.6 to this Quarterly Report on Form 10-Q as Exhibit 3.1 and are incorporated herein by reference.
On November 2, 2017, the Board approved Amendment Number 1 (the "Plan Amendment") to the Realogy Holdings Corp. Amended and Restated 2012 Long-Term Incentive Plan (the "Amended and Restated 2012 LTIP") to allow for the elimination of fractional shares by rounding up or down in the discretion of plan administrator (which is generally the Compensation Committee of the Board). On November 2, 2017, the Compensation Committee amended outstanding performance restricted stock unit, performance share unit and restricted stock unit awards (the "Amended Awards") granted to employees, including executive officers, prior to the date of the Plan Amendment, to provide for the rounding up of fractional shares upon the final vesting of the Amended Awards.
The foregoing description of the Plan Amendment is qualified in its entirety by reference to the Plan Amendment, which is attached to this Quarterly Report on Form 10-Q as Exhibit 10.1 and is incorporated herein by reference.herein.
Item 6.    Exhibits.
See Exhibit Index.



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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


REALOGY HOLDINGS CORP.
and
REALOGY GROUP LLC
(Registrants)




Date: November 3, 20175, 2020
/S/ ANTHONY E. HULL        CHARLOTTE C. SIMONELLI
Anthony E. HullCharlotte C. Simonelli
Executive Vice President and
Chief Financial Officer






Date: November 3, 20175, 2020    
/S/ TIMOTHY B. GUSTAVSON    
Timothy B. Gustavson
Senior Vice President,
Chief Accounting Officer and
Controller



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EXHIBIT INDEX
Exhibit    Description    
3.1*
Fourth Amended and Restated Bylaws of Realogy Holdings Corp., as adopted by the Board of Directors, effective November 2, 2017.
4.1*        Supplemental Indenture No. 1 dated as of August 28, 2020 to the 7.625% Senior Secured Second Lien Notes Indenture.
10.1*         Joinder No. 1 dated as of August 28, 2020 to the First Lien / Second Lien Intercreditor Agreement, dated as of June 16, 2020, among Realogy Group LLC, the other Grantors (as defined therein) party thereto, JPMorgan Chase Bank, N.A., as the Initial First Lien Priority Representative (as defined therein), The Bank of New York, Mellon Trust Company, N.A., as the Initial Second Lien Priority Representative (as defined therein), and the additional authorized representatives from time to time party thereto.
10.2*        Supplement No. 1 to the Second Lien Priority Collateral Agreement, dated as of June 16, 2020, among Realogy Intermediate Holdings Corp., Realogy Group LLC, each other Grantor identified therein and party thereto and The Bank of New York Mellon Trust Company, N.A., as Collateral Agent.
10.3        Fifteenth Omnibus Amendment, dated as of August 5, 2020, among Cartus Corporation, Cartus Financial Corporation, Apple Ridge Services Corporation, Apple Ridge Funding LLC, Realogy Group LLC, U.S. Bank National Association, the managing agents party to the Note Purchase Agreement dated December 14, 2011, as amended, and Crédit Agricole Corporate and Investment Bank(Incorporated by reference to Exhibit 10.6 to the Registrants' Quarterly Report on Form 10-Q filed on August 6, 2020).
10.4        Ninth Amendment, dated as of July 24, 2020, to the Amended and Restated Credit Agreement, dated as of March 5, 2013, as amended, among Realogy Intermediate Holdings LLC, Realogy Group LLC, the several lenders parties thereto from time to time and JPMorgan Chase Bank, N.A., as administrative agent for the lenders (Incorporated by reference to Exhibit 10.1 to the Registrants' Current Report on Form 8-K filed on July 30, 2020).
10.5         Third Amendment, dated as of July 24, 2020, to the Term Loan A Agreement, dated as of October 23, 2015, among Realogy Intermediate Holdings LLC, Realogy Group LLC, the lenders party thereto from time to time and JPMorgan Chase Bank, N.A., as administrative agent for the lenders (Incorporated by reference to Exhibit 10.2 to Registrants' Current Report on Form 8-K filed on July 30, 2020).
10.6*        Performance and Retention Awardbetween Ryan Schneider and Realogy Holdings Corp.
15.1*        Letter Regarding Unaudited Interim Financial Statements.
31.1*        Certification of the Chief Executive Officer of Realogy Holdings Corp. pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.2*        Certification of the Chief Financial Officer of Realogy Holdings Corp. pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.3*        Certification of the Chief Executive Officer of Realogy Group LLC pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.4*   ��    Certification of the Chief Financial Officer of Realogy Group LLC pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
32.1*        Certification for Realogy Holdings Corp. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*        Certification for Realogy Group LLC pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101         The following financial information from Realogy's Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 formatted in iXBRL (Inline eXtensible Business Reporting Language) includes: (i) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) Notes to the Condensed Consolidated Financial Statements.
104        Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
10.1
Employment Agreement dated October 17, 2017 between Realogy Holdings Corp. and Ryan M. Schneider (Incorporated by reference to Exhibit 10.1 to Registrants' Current Report on Form 8-K filed on October 23, 2017).
10.2
Non-Plan Inducement Stock Option Agreement dated October 23, 2017 between Realogy Holdings Corp. and Ryan M. Schneider (Incorporated by reference to Exhibit 10.2 to Registrants' Current Report on Form 8-K filed on October 23, 2017).
10.3
Non-Plan Inducement Restricted Stock Unit Agreement dated October 23, 2017 between Realogy Holdings Corp. and Ryan M. Schneider (Incorporated by reference to Exhibit 10.3 to Registrants' Current Report on Form 8-K filed on October 23, 2017).
10.4
Amendment dated October 23, 2017 to Employment Agreement dated March 13, 2017, between Realogy Holdings Corp. and Richard A. Smith (Incorporated by reference to Exhibit 10.5 to Registrants' Current Report on Form 8-K filed on October 23, 2017).
10.5 *
Amendment No. 1 dated November 2, 2017 to the Amended and Restated Realogy Holdings Corp. 2012 Long-Term Incentive Plan.
15.1*
Letter Regarding Unaudited Interim Financial Statements.
31.1*
Certification of the Chief Executive Officer of Realogy Holdings Corp. pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.2*
Certification of the Chief Financial Officer of Realogy Holdings Corp. pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.3*
Certification of the Chief Executive Officer of Realogy Group LLC pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.4*
Certification of the Chief Financial Officer of Realogy Group LLC pursuant to Rules 13(a)-14(a) and 15(d)-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
32.1*
Certification for Realogy Holdings Corp. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*
Certification for Realogy Group LLC pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS ^XBRL Instance Document.
101.SCH ^XBRL Taxonomy Extension Schema Document.
101.CAL^XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF ^XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB ^XBRL Taxonomy Extension Label Linkbase Document.
101.PRE ^XBRL Taxonomy Extension Presentation Linkbase Document.
______________
*
*    Filed herewith.
^Furnished electronically with this report.



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