DISCONTINUED OPERATIONS (Tables)

9 Months Ended

Sep. 30, 2013

RealEstate.com

DISCONTINUED OPERATIONS

Schedule of revenue and net income (loss) of the discontinued operations

The revenue and net loss for the real estate businesses that are reported as discontinued operations for the applicable periods are as follows (in thousands): 

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2013			2012			2013			2012
Revenue	$	—		$	2		$	1		$	77
Loss before income taxes	$	(6	)	$	(282	)	$	(21	)	$	(442	)
Income tax benefit	—			—			—			—
Net loss	$	(6	)	$	(282	)	$	(21	)	$	(442	)

Schedule of assets and liabilities of the discontinued operations

The assets and liabilities of real estate businesses that are reported as discontinued operations as of September 30, 2013 and December 31, 2012 are as follows (in thousands): 

	September 30, 2013			December 31, 2012
Current liabilities	$	(78	)	$	(206	)
Net liabilities	$	(78	)	$	(206	)

Lending Tree Loans

DISCONTINUED OPERATIONS

Schedule of revenue and net income (loss) of the discontinued operations

The revenue and net income (loss) for LendingTree Loans that are reported as discontinued operations for the applicable periods are as follows (in thousands):

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2013			2012			2013			2012
Revenue	$	(37	)	$	5,943		$	(1,524	)	$	87,338
Income (loss) before income taxes	$	(520	)	$	4,470		$	(3,887	)	$	27,660
Income tax benefit (expense)	(3		)	(76		)	(54		)	(2,473		)
Gain from sale of discontinued operations, net of tax	—			—			10,101			24,313
Net income (loss)	$	(523	)	$	4,394		$	6,160		$	49,500

Schedule of assets and liabilities of the discontinued operations

The assets and liabilities of LendingTree Loans that are reported as discontinued operations as of September 30, 2013 and December 31, 2012 are as follows (in thousands):

	September 30, 2013			December 31, 2012
Current assets	$	31		$	407
Non-current assets	129			129
Current liabilities	(31,868		)	(30,811		)
Non-current liabilities	(151		)	(253		)
Net liabilities	$	(31,859	)	$	(30,528	)

Schedule of changes in assets and liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The following presents the changes in our assets and liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2012(in thousands):

	Three Months Ended September 30, 2012
	Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale
Balance at July 1, 2012	$	—	$	—	$	167
Transfers into Level 3	—		—		124
Transfers out of Level 3	—		—		—
Total net gains (losses) included in earnings (realized and unrealized)	—		—		(380		)
Purchases, sales, and settlements:
Purchases	—		—		—
Sales	—		—		90
Settlements	—		—		(1		)
Transfers of IRLCs to closed loans	—		—		—
Balance at September 30, 2012	$	—	$	—	$	—

	Nine Months Ended September 30, 2012
	Interest Rate Lock Commitments			Forward Delivery Contracts			Loans Held for Sale
Balance at January 1, 2012	$	9,122		$	19		$	295
Transfers into Level 3	—			—			564
Transfers out of Level 3	—			(845		)	—
Total net gains (losses) included in earnings (realized and unrealized)	73,378			846			(147		)
Purchases, sales, and settlements
Purchases	—			—			—
Sales	(5,640		)	(20		)	(491		)
Settlements	(3,401		)	—			(221		)
Transfers of IRLCs to closed loans	(73,459		)	—			—
Balance at September 30, 2012	$	—		$	—		$	—

Schedule of gains (losses) included in earnings relating to assets and liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The following presents the gains (losses) included in earnings for the three and nine months ended September 30, 2012 relating to our assets and liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):

	Three Months Ended September 30, 2012							Nine Months Ended September 30, 2012
	Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale			Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale
Total net gains (losses) included in earnings, which are included in discontinued operations	$	—	$	—	$	(380	)	$	73,378	$	846	$	(147	)
Change in unrealized gains (losses) relating to assets and liabilities still held at September 30, 2012, which are included in discontinued operations	$	—	$	—	$	(412	)	$	—	$	—	$	(412	)

Schedule of gain/(loss) recognized in the consolidated statements of operations for derivatives

The gain (loss) recognized in the consolidated statements of operations for derivatives for the three and nine months ended September 30, 2012 was as follows (in thousands): 

	Location of Gain (Loss) Recognized in Income on Derivative	Three Months Ended September 30, 2012		Nine Months Ended September 30, 2012
Interest Rate Lock Commitments	Discontinued operations	$	—	$	73,378
Forward Delivery Contracts	Discontinued operations	2,193		4,244
Total		$	2,193	$	77,622

Schedule of loans sold for the period and the aggregate loan losses

The following table represents the loans sold for the periods shown and the aggregate loan losses through September 30, 2013:

	September 30, 2013
Period of Loan Sales	Number of loans sold	Original principal balance		Number of loans with losses	Original principal balance of loans with losses		Amount of aggregate losses
		(in billions)			(in millions)		(in millions)
2013	—	$	—	—	$	—	$	—
2012	9,200	1.9		—	—		—
2011	12,500	2.7		1	0.3		0.1
2010	12,400	2.8		4	1.1		0.1
2009	12,800	2.8		4	0.9		0.1
2008	11,000	2.2		33	6.9		2.2
2007	36,300	6.1		160	22.1		8.2
2006	55,000	7.9		207	24.5		13.4
2005 and prior years	86,700	13.0		89	12.3		5.0
Total	235,900	$	39.4	498	$	68.1	$	29.1

Schedule of activity related to loss reserves on previously sold loans

The activity related to loss reserves on previously sold loans for the three and nine months ended September 30, 2013 and 2012, is as follows (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Balance, beginning of period	$	28,675	$	33,096		$	27,182	$	31,512
Provisions (recoveries)	38		(6,493		)	1,531		(109		)
Charge offs to reserves	—		(14		)	—		(4,814		)
Balance, end of period	$	28,713	$	26,589		$	28,713	$	26,589