Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

As of August 31, 2012, we completed the disposition of our transportation services business (American Driving Records) for $11.0 million, which resulted in a pre-tax gain of $3.9 million for the year ended 2012. This gain is included in gain/(loss) from sale of discontinued operations, net of tax in the accompanying consolidated statements of operations. We completed the wind down of our consumer services business in lieu of a sale as of September 2012. We completed the wind down of our appraisal management company business in lieu of a sale as of September 2012. In connection with the wind down of our 100% owned appraisal management company business, we incurred a pre-tax write-down of the remaining goodwill of $13.9 million in the first quarter of 2012. In September 2011, we closed our marketing services business (LeadClick). In the third quarter of 2012, we recorded an additional adjustment of approximately $4.1 million income tax expense associated with the closure of LeadClick as discussed in Note 2 - Significant Accounting Policies. In December 2010, we entered into a purchase agreement with an affiliate of Symphony Technology Group, pursuant to which we sold our employer and litigation services businesses. For the year ended December 31, 2012, we recorded a gain of $3.8 million on sale of discontinued operations, net.

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 2012 presentation.

For the year ended 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 appraisal management company, $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 ("ELI") 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 charges 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. In 2012, we recognized a loss on sale of discontinued operations, net of tax of $3.5 million for changes in tax related accruals due to expenses incurred in the first quarter of 2012.

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 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 operations as of December 31, 2012, 2011 and 2010:

(in thousands)					Data Analytics					Mortgage Origination Services		Asset Management and Processing Solutions
As of December 31, 2012	FAFC		ELI		Marketing			Consumer		Appraisal		Transportation			Total
Total assets	$	—	$	—	$	204		$	251	$	337	$	2		$	794
Total liabilities	$	—	$	—	$	776		$	691	$	1,920	$	(35	)	$	3,352
As of December 31, 2011
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

Summarized below are the components of our income (loss) from discontinued operations for the year ended December 31, 2012, 2011 and 2010:

(in thousands)							Data and Analytics						Mortgage Origination Services			Asset Management and Processing Solutions
For the year ended December 31, 2012	FAFC			ELI			Marketing			Consumer			Appraisal			Transportation			Total
Operating revenue	$	—		$	—		$	—		$	55,773		$	25,137		$	46,435		$	127,345
(Loss)/income from discontinued operations before income taxes	—			—			(122		)	5,026			(21,375		)	(1,786		)	(18,257		)
(Benefit)/provision for income taxes	—			—			4,891			15			(5,186		)	(2,921		)	(3,201		)
(Loss)/income, net of tax	—			—			(5,013		)	5,011			(16,189		)	1,135			(15,056		)
(Loss)/income from discontinued operations, net of tax	$	—		$	—		$	(5,013	)	$	5,011		$	(16,189	)	$	1,135		$	(15,056	)
For the year ended December 31, 2011
Operating revenue	$	—		$	—		$	29,399		$	94,755		$	69,890		$	66,115		$	260,159
Income/(loss) from discontinued operations before income taxes	—			—			(164,094		)	(10,453		)	(20,178		)	(2,472		)	(197,197		)
Provision/(benefit) for income taxes	—			—			(61,947		)	(2,205		)	(6,172		)	251			(70,073		)
Income/(benefit), net of tax	—			—			(102,147		)	(8,248		)	(14,006		)	(2,723		)	(127,124		)
Income/(loss) 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/(loss), net of tax	43,101			(138,631		)	(1,437		)	7,170			4,983			859			(83,955		)
Less:  Net income 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	)