Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

As of September 30, 2011, we closed our marketing services business (LeadClick) and concluded we would actively pursue the sale of our consumer services (Consumer Credit Monitoring Services), transportation services (comprised of our American Driving Records and CompuNet Credit Services business units) and our wholly-owned appraisal management services businesses. As a result, each of these businesses is reflected in our consolidated financial statements as discontinued operations and the results of these businesses in the prior years have been recast to conform to the 2011 presentation.

For the year ended December 31, 2011, we recorded pre-tax impairment charges of $137.7 million as a component of loss from discontinued operations comprised of $123.3 million for marketing services, $8.3 million for our wholly-owned appraisal management services, $3.6 million for transportation services and $2.6 million for consumer services. In addition, we incurred a non-cash impairment charge of $17.1 million for intangibles, a non-cash impairment charge of $10.6 million for internally developed software and bad debt expense of $8.9 million for accounts receivable we deemed to be uncollectible. Finally, we incurred $1.8 million in expense to write-off various other assets and to accrue for expenses related to the closure of our marketing services business.

On December 22, 2010, the Company and STG-Fairway Holdings, LLC (the “Purchaser”), which is owned by affiliates of Symphony Technology Group, entered into a Purchase Agreement, pursuant to which we sold our employer and litigation services businesses to the Purchaser for all cash proceeds of $265.0 million. We also agreed to provide certain transition services to the Purchaser for up to one year following the closing. For the year ended December 31, 2010, we recorded pre-tax impairment charge of $174.0 million, related to the sale of the employer and litigation services businesses, as a component of loss from discontinued operations. Further, we recognized a loss on sale of discontinued operation, net of tax of $19.0 million, which included a tax benefit of $34.5 million. The businesses are reflected in our consolidated financial statements as discontinued operations and the results of the businesses in the prior years have been recast to conform to the 2011 presentation.

The businesses distributed as part of the Separation are presented within the consolidated financial statements as discontinued operations. The net income from discontinued operations for the year ended December 31, 2011 includes an allocation of the income tax expense or benefit originally allocated to income from continuing operations. The amount of tax allocated to discontinued operations is the difference between the tax originally allocated to continuing operations and the tax allocated to the restated amount of income from continuing operations in each period.

Summarized below are certain assets and liabilities classified as discontinued operation as of December 31, 2011 and 2010:

(in thousands)					Data Analytics					Mortgage Origination		Default
As of December 31, 2011	FAFC		ELI		Marketing			Consumer		Appraisal		Transportation		Total
Current assets	$	—	$	—	$	3,380		$	14,833	$	1,038	$	13,252	$	32,503
Property and equipment, net	—		—		—			114		911		1,967		2,992
Goodwill and other identifiable intangible assets, net	—		—		—			2,109		13,959		3,845		19,913
Other assets	—		—		—			—		—		108		108
Total assets	$	—	$	—	$	3,380		$	17,056	$	15,908	$	19,172	$	55,516
Total liabilities	$	—	$	—	$	(2,210	)	$	11,849	$	10,907	$	6,853	$	27,399
As of December 30, 2010
Current assets	$	—	$	—	$	31,411		$	17,674	$	8,911	$	19,594	$	77,590
Property and equipment, net	—		—		980			9,275		1,683		2,085		14,023
Goodwill and other identifiable intangible assets, net	—		—		142,792			4,996		22,330		7,825		177,943
Other assets	—		—		—			331		193		213		737
Total assets	$	—	$	—	$	175,183		$	32,276	$	33,117	$	29,717	$	270,293
Total liabilities	$	—	$	—	$	11,440		$	9,386	$	12,005	$	7,331	$	40,162

Summarized below are the components of our income (loss) from discontinued operations for the year ended December 31, 2011, 2010 and 2009:

(in thousands)			Data and Analytics		Mortgage Origination	Default
For the year ended December 31, 2011	FAFC	ELI	Marketing	Consumer	Appraisal	Transportation	Total

Operating revenue	$	—		$	—		$	29,399		$	94,755		$	69,890		$	66,115		$	260,159
(Loss)/income from discontinued operations before income taxes	—			—			(164,094		)	(10,453		)	(20,178		)	(2,472		)	(197,197		)
(Benefit)/provision for income taxes	—			—			(61,947		)	(2,205		)	(6,172		)	251			(70,073		)
(Loss)/income, net of tax	—			—			(102,147		)	(8,248		)	(14,006		)	(2,723		)	(127,124		)
Less: Net income attributable to noncontrolling interests	—			—			—			—			—			—			—
(Loss)/income from discontinued operations, net of tax	$	—		$	—		$	(102,147	)	$	(8,248	)	$	(14,006	)	$	(2,723	)	$	(127,124	)
For the year ended December 31, 2010
Operating revenue	$	1,490,501		$	242,895		$	44,221		$	89,573		$	141,856		$	67,346		$	2,076,392
Income/(loss) from discontinued operations before income taxes	76,323			(166,064		)	(11,777		)	11,950			8,304			1,432			(79,832		)
Provision/(benefit) for income taxes	33,222			(27,433		)	(10,340		)	4,780			3,321			573			4,123
Income/(benefit), net of tax	43,101			(138,631		)	(1,437		)	7,170			4,983			859			(83,955		)
Less:  Net loss attributable to noncontrolling interests	(419		)	—			—			—			—			—			(419		)
Income/(loss) from discontinued operations, net of tax	$	43,520		$	(138,631	)	$	(1,437	)	$	7,170		$	4,983		$	859		$	(83,536	)
For the year ended December 31, 2009
Operating revenue	$	3,938,616		$	209,280		$	97,842		$	58,399		$	149,693		$	64,596		$	4,518,426
Income/(loss) from discontinued operations before income taxes	229,989			9,193			(7,859		)	12,713			17,391			6,051			267,478
Provision/(benefit) for income taxes	86,459			7,104			(3,144		)	5,085			7,008			2,420			104,932
Income/(loss), net of tax	143,530			2,089			(4,715		)	7,628			10,383			3,631			162,546
Less:  Net income attributable to noncontrolling interests	11,888			—			—			—			—			—			11,888
Income/(loss) from discontinued operations, net of tax	$	131,642		$	2,089		$	(4,715	)	$	7,628		$	10,383		$	3,631		$	150,658