Investments in Affiliates

6 Months Ended

Jun. 30, 2012

Equity Method Investments and Joint Ventures [Abstract]

Investment in Affiliates, net

Investments in affiliates are accounted for under the equity method of accounting as we are deemed to have significant influence over the affiliate but do not control or have a majority voting interest in the affiliate. Investments are carried at the cost of acquisition, including subsequent capital contributions and loans from us, plus our equity in undistributed earnings or losses since inception of investment. We recorded equity in earnings of affiliates net of tax of $11.7 million and $5.7 million for the three months ended June 30, 2012 and 2011, respectively, and $21.2 million and $12.1 million for the six months ended June 30, 2012 and 2011, respectively. Income tax expense of $7.5 million and $3.8 million was recorded on these earnings for the three months ended June 30, 2012 and 2011, respectively, and $13.5 million and $8.0 million for the six months ended June 30, 2012 and 2011, respectively.

One of our subsidiaries owns a 50.1% interest in a joint venture that provides products and services used in connection with loan originations. This investment in affiliate contributed 67.3% and 96.3% of our total equity in earnings of affiliates, net of tax, for the three months ended June 30, 2012 and 2011, respectively, and 73.3% and 88.3% for the six months ended June 30, 2012 and 2011, respectively. Based on the terms and conditions of the joint venture agreement, we have significant influence but do not have control of, nor a majority voting interest in, the joint venture. Accordingly, this investment is accounted for under the equity method. Summarized financial information for this investment (assuming a 100% ownership interest) is as follows:



	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
(in thousands)	2012		2011		2012		2011
Statement of operations
Net revenues	$	127,441	$	89,620	$	250,771	$	174,313
Expenses	101,014		71,160		198,735		138,626
Income before income taxes	$	26,427	$	18,460	$	52,036	$	35,687
Net income	$	26,291	$	18,314	$	51,759	$	35,392
CoreLogic equity in earnings of affiliate, pre-tax	$	13,172	$	9,175	$	25,931	$	17,731

In July 2012, we completed our acquisition of the remaining interest in RELS Reporting Services, LLC (dba RELS Credit) ("RELS Credit"), which resulted in a non-cash impairment charge of $1.2 million in our investments in affiliates, net for the three and six months ended of June 30, 2012. This non-cash impairment charge is included in gain/(loss) on investment and other, net in the accompanying condensed consolidated statements of income.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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