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Frontdoor Inc

For the period ended Jun 30, 2024. Filed Aug 1, 2024.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 1, 2024

FTDR$100.73+3.7%Stored close · as of Nov 9, 2026

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30,2024

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 number 001-38617

(Exact name of registrant as specified in its charter)

Delaware82-3871179
(State or other jurisdiction of incorporation or organization)(IRS Employer Identification No.)

3400 Players Club Parkway, Memphis, Tennessee 38125

(Address of principal executive offices) (Zip Code)

901-701-5000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each ClassTrading SymbolName of Each Exchange on which Registered
Common stock, par value $0.01 per shareFTDRThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has 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) has been subject to such filing requirements for the past 90 days.

Yes  No

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See 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 Smaller reporting company 
Emerging growth company 

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 registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes No

As of July 26, 2024, there were 76,524,535 shares outstanding of the registrant’s common stock, par value $0.01 per share.

Quarterly Report on Form 10-Q

GLOSSARY OF TERMS AND SELECTED ABBREVIATIONS

In order to aid the reader, we have included certain defined terms and abbreviations used throughout this Quarterly Report on Form 10-Q as set forth below:

Term / AbbreviationDefinition
2-10 HBWThe businesses operated by 2-10 Holdco, Inc. and all of its subsidiaries
2-10 HBW AcquisitionThe acquisition of 2-10 HBW by Frontdoor pursuant to the terms of the Purchase Agreement
AOCIAccumulated other comprehensive income or loss
ASCFASB Accounting Standards Codification
ASUFASB Accounting Standards Update
Credit AgreementThe agreements governing the Credit Facilities
Credit FacilitiesThe Term Loan Facilities together with the Revolving Credit Facility
Exchange ActSecurities Exchange Act of 1934, as amended
FASBU.S. Financial Accounting Standards Board
Home WarrantyA home service contract, sometimes called a residential service contract, home warranty or home protection contract, provides for the repair and/or replacement of certain home systems and appliances for breakdowns that occur as a result of normal wear and tear
HVACHeating, ventilation and air conditioning
IRSU.S. Internal Revenue Service
NASDAQNasdaq Global Select Market
Omnibus PlanFrontdoor, Inc. 2018 Omnibus Incentive Plan
Purchase AgreementShare Purchase Agreement dated June 3, 2024, by and among Frontdoor, Inc., 2-10 HBW Acquisition, L.P. and 2-10 Holdco, Inc. pursuant to which Frontdoor acquires all of the issued and outstanding stock of 2-10 Holdco, Inc.
Revolving Credit Facility$250 million revolving credit facility effective June 17, 2021
SECU.S. Securities and Exchange Commission
Securities ActSecurities Act of 1933, as amended
StreemStreem, LLC, our technology business that uses augmented reality, computer vision and machine learning to provide services
Term Loan A$260 million term loan A facility effective June 17, 2021
Term Loan B$380 million term loan B facility effective June 17, 2021
Term Loan FacilitiesThe Term Loan A together with the Term Loan B
U.S. or United StatesUnited States of America
U.S. GAAPAccounting principles generally accepted in the United States of America

In this Quarterly Report on Form 10-Q, unless the context indicates otherwise, references to “Frontdoor,” “we,” “our,” “us,” and the “company” refer to Frontdoor, Inc. and all of its subsidiaries. Frontdoor is a Delaware corporation with its principal executive offices in Memphis, Tennessee.

We hold various service marks, trademarks and trade names, such as Frontdoor®, American Home Shield®, HSA™, OneGuard®, Landmark Home Warranty®, Streem®, the Streem logo and the Frontdoor logo. Solely for convenience, the service marks, trademarks and trade names referred to in this Quarterly Report on Form 10-Q are presented without the SM, ®, and TM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors to these service marks, trademarks and trade names. All service marks, trademarks and trade names appearing in this Quarterly Report on Form 10-Q are the property of their respective owners.

Certain amounts presented in the tables in this report are subject to rounding adjustments and, as a result, the totals in such tables may not sum.

TABLE OF CONTENTS

Page
No.
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Statements of Operations and Comprehensive Income3
Condensed Consolidated Statements of Financial Position4
Condensed Consolidated Statements of Changes in Equity (Deficit)5
Condensed Consolidated Statements of Cash Flows6
Notes to Condensed Consolidated Financial Statements7
Cautionary Statement Concerning Forward-Looking Statements17
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations19
Item 3. Quantitative and Qualitative Disclosures About Market Risk32
Item 4. Controls and Procedures32
Part II. Other Information32
Item 1. Legal Proceedings32
Item 1A. Risk Factors32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds34
Item 6. Exhibits35
Signature36
ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.