Investments in Affiliates

9 Months Ended

Sep. 30, 2012

Equity Method Investments and Joint Ventures [Abstract]

Investments in Affiliates

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 $8.2 million and $8.3 million for the three months ended September 30, 2012 and 2011, respectively, and $29.4 million and $20.4 million for the nine months ended September 30, 2012 and 2011, respectively. Income tax expense of $5.2 million and $5.6 million was recorded on these earnings for the three months ended September 30, 2012 and 2011, respectively, and $18.7 million and $13.6 million for the nine months ended September 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 78.0% and 85.0% of our total equity in earnings of affiliates, net of tax, for the three months ended September 30, 2012 and 2011, respectively, and 74.6% and 86.9% for the nine months ended September 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 Nine Months Ended
	September 30,				September 30,
(in thousands)	2012		2011		2012		2011
Statement of operations
Net revenues	$	112,887	$	105,187	$	363,658	$	279,500
Expenses	91,635		81,429		290,370		220,055
Income before income taxes	$	21,252	$	23,758	$	73,288	$	59,445
Net income	$	21,185	$	23,582	$	72,944	$	58,974
CoreLogic equity in earnings of affiliate, pre-tax	$	10,614	$	11,815	$	36,545	$	29,546

In August 2012, we completed the disposition of our remaining 29.8% interest in Lone Wolf Real Estate Technologies, Inc. for $8.0 million. The disposition resulted in a gain of $2.2 million, net for the three and nine months ended September 30, 2012. This gain is included in (loss)/gain on investments and other, net in the accompanying condensed consolidated statements of income.

In July 2012, we completed our acquisition of RELS Reporting Services, LLC (dba RELS Credit) (“RELS Credit”), for $3.0 million. We recorded $1.5 million as dividends received from investments in affiliates related to the aforementioned transaction. The acquisition resulted in a change in equity interest loss of $1.2 million, net for the three and nine months ended September 30, 2012. This loss is included in (loss)/gain on investments and other, net in the accompanying condensed consolidated statements of income. See further discussion at Note 13 - Acquisitions.