What were the intersegment revenues for the Corcoran Franchise Group?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
$ | 248 $ 5,839 | | | Capital expenditures . . . . . . . . . . . . . . . . . . . | | | | | | | 28 24 | 7 59 | 13 72 | | | Investment in equity method investees . . . . . | | — 26 | 152 178 | — 178 | | Depreciation and amortization . . . . . . . . . . . . | 114 52 | 12 178 | 18 196 | | (a) Intersegment revenues include intercompany royalties and marketing fees paid by Owned Brokerage Group to Franchise Group and are eliminated in consolidation.
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(b) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
(c) General and administrative expenses exclude non-cash stock-based compensation and legal contingencies unrelated to normal operations which currently includes industry-wide antitrust lawsuits and class action lawsuits.
(d) Other segment items include Net income (loss) attributable to noncontrolling interests and other non-operating items. Amounts are immaterial to each segment.
| Franchise Group | Owned Brokerage Group | Title Group | Totals | |
|---|---|---|---|---|
| Net revenues from external customers | $ 668 | $ 4,628 | $ 340 | $ 5,636 |
| Intersegment revenues (a) | 315 | — | — | 315 |
| Segment net revenues | 983 | 4,628 | 340 | 5,951 |
| Reconciliation of Segment net revenues to Total consolidated net revenues | ||||
| Elimination of intersegment revenues (a) | (315) | |||
| Total consolidated net revenues | 5,636 | |||
| Less (b): | ||||
| Commission and other agent-related costs | — | 3,664 | — | 3,664 |
| Operating | 259 | 893 | 294 | 1,446 |
| Marketing | 95 | 114 | 19 | 228 |
| General and administrative (c) | 102 | 93 | 52 | 247 |
| Equity in earnings | — | (2) | (7) | (9) |
| Other segment items (d) | — | 1 | (2) | (1) |
| Segment operating EBITDA | 527 | (135) | (16) | 376 |
| Reconciliation of Segment operating EBITDA to Net loss attributable to Anywhere and Anywhere Group | ||||
| before income taxes | ||||
| Unallocated amounts: | ||||
| Former parent legacy cost, net | 18 | |||
| Gain on the early extinguishment of debt | (169) | |||
| Other corporate expenses | 121 | |||
| Depreciation and amortization | 196 | |||
| Interest expense, net | 151 | |||
| Stock-based compensation | 12 | |||
| Restructuring costs, net | 49 | |||
| Impairments | 65 | |||
| Legal contingencies | 43 | |||
| Loss on the sale of businesses, investments or other assets, net | 2 | |||
| Net loss attributable to Anywhere and Anywhere Group before income taxes |
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, intersegment revenues represent transactions between different segments within the company. For the Franchise Group, these revenues totaled $319 in one instance and $315 in another. These figures reflect internal financial activity rather than revenue generated from external customers.
Specifically, one table shows the Franchise Group with intersegment revenues of $319, while another table shows $315. These revenues are part of the broader segment net revenues, which totaled $961 and $983 respectively for the Franchise Group in the same tables. The tables also detail net revenues from external customers, which were $642 and $668 respectively.
It's important to note that intersegment revenues are eventually eliminated in the consolidated financial statements to avoid double-counting. This means that while they appear in the segment-level financials, they do not contribute to the total consolidated net revenues of Corcoran. For a prospective franchisee, understanding the distinction between net revenues from external customers and intersegment revenues is crucial for assessing the true financial performance of the Franchise Group.
Therefore, when evaluating Corcoran's financial performance, potential franchisees should focus on the net revenues from external customers as a more accurate indicator of the Franchise Group's revenue-generating ability from its core business activities.