Segment Financial Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Financial Information

Segment Financial Information

We have organized our reportable segments into the following three reporting segments: data and analytics, mortgage

origination services and asset management and processing solutions. We have renamed our default services segment to asset management and processing solutions to reflect the change in business mix away from default related business process outsourcing toward asset management, valuation and loss mitigation services.

In connection with our acquisition of CDS in December 2012, we separated our spatial solutions business line from our mortgage origination services segment and combined CDS with spatial solutions, effectively creating the geospatial solutions business unit within the data and analytics segment. As a result, we revised our reporting for segment disclosure purposes.

Data and Analytics: Our data and analytics segment owns or licenses data assets including loan information, criminal and eviction records, employment verification, property characteristic information and information on mortgage-backed securities. We both license our data directly to our customers and provide our customers with analytical products for risk management, collateral assessment, loan quality reviews and fraud assessment. We are also a provider of geospatial proprietary software and databases combining geographic mapping and data. Our primary customers are commercial banks, mortgage lenders and brokers, investment banks, fixed-income investors, real estate agents, property and casualty insurance companies, title insurance companies and government-sponsored enterprises.

Our data and analytics segment includes intercompany revenues of $12.4 million, $13.4 million, and $14.0 million for the years ended December 31, 2012, 2011 and 2010, respectively; and intercompany expenses of $2.9 million, $1.8 million, $10.8 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Mortgage Origination Services: Our mortgage origination services segment provides tax monitoring, flood zone certification and monitoring, credit services, mortgage loan administration and production services, lending solutions and mortgage-related business process outsourcing. The segment’s primary customers are large, national mortgage lenders and servicers, but we also serve regional mortgage lenders and brokers, credit unions, commercial banks, and government agencies.

Our mortgage origination services segment includes intercompany revenues of $3.1 million, $6.4 million, and $3.0 million for the years ended December 31, 2012, 2011 and 2010, respectively; and intercompany expenses of $11.6 million, $10.0 million, $31.1 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Asset Management and Processing Solutions: Our asset management and processing solutions segment provides mortgage default management services, loss mitigation services, claims management, property valuation and management services. The segment’s primary customers are large, national mortgage lenders and servicers, but we also serve regional mortgage lenders and brokers, credit unions, commercial banks, government agencies and property and casualty insurance companies.

Our asset management and processing solutions segment includes intercompany revenues of $3.0 million, $0.9 million, and $2.3 million for the years ended December 31, 2012, 2011 and 2010, respectively; and intercompany expenses of $0.0 million, $3.9 million, $16.0 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Corporate consists primarily of investment gains and losses, corporate personnel and other operating expenses associated with our corporate facilities, certain technology initiatives, equity in earnings of affiliates, net of tax, unallocated interest expense, and our marketing services group (which focuses on lead generation).

It is impracticable to disclose revenues from external customers for each product and service offered.

Selected financial information segment is as follows:

(in thousands)
For the year ended December 31, 2012	Data and Analytics		Mortgage Origination Services		Asset Management and Processing Solutions			Corporate			Eliminations			Consolidated (excluding discontinued operations)
Operating revenue	$	616,110	$	635,615	$	335,224		$	640		$	(19,956	)	$	1,567,633
Depreciation and amortization	72,391		26,013		11,930			23,515			(135		)	133,714
Operating income/(loss)	109,023		171,495		48,100			(106,493		)	135			222,260
Equity in earnings of affiliates, net of tax	2,197		55,571		—			(21,785		)	—			35,983
Net income/(loss) from continuing operations	112,155		226,738		48,384			(264,549		)	135			122,863
Capital expenditures	54,845		14,739		4,025			$	10,871		—			84,480
For the year ended December 31, 2011
Operating revenue	$	548,146	$	482,076	$	329,273		$	41,789		$	(62,737	)	$	1,338,547
Depreciation and amortization	67,230		22,510		7,484			19,163			(841		)	115,546
Operating income/(loss)	75,437		71,842		45,086			(104,521		)	841			88,685
Equity in earnings of affiliates, net of tax	1,512		47,673		(245		)	(18,670		)	—			30,270
Net income/(loss) from continuing operations	75,763		120,891		44,310			$	(188,310	)	841			53,495
Capital expenditures	43,506		12,528		4,062			12,128			—			72,224
For the year ended December 31, 2010
Operating revenue	$	463,513	$	466,117	$	368,536		59,125			$	(77,015	)	$	1,280,276
Depreciation and amortization	48,722		17,844		5,446			23,676			(807		)	94,881
Operating income/(loss)	88,260		82,775		77,205			(135,364		)	807			113,683
Equity in earnings of affiliates, net of tax	4,606		64,588		755			(28,308		)	—			41,641
Net Income/(loss) from continuing operations	92,853		147,663		81,310			(238,742		)	807			83,891
Capital expenditures	33,819		8,698		2,658			32,249			—			77,424

(in thousands)
As of December 31, 2012	Data and Analytics		Mortgage Origination Services		Asset Management and Processing Solutions		Corporate		Eliminations			Consolidated (excluding discontinued operations)
Investment in affiliates, net	$	14,206	$	72,977	$	—	$	7,044	$	—		$	94,227
Long-lived assets	1,229,973		876,765		167,382		4,068,246		(3,902,463		)	2,439,903
Total assets	1,375,775		1,000,382		211,515		4,344,263		(3,902,902		)	3,029,033
As of December 31, 2011
Investment in affiliates, net	$	24,398	$	79,538	$	—	$	9,873	$	—		$	113,809
Long-lived assets	1,175,596		895,268		177,122		3,836,042		(3,668,241		)	2,415,787
Total assets	1,283,568		1,003,937		226,034		4,218,145		(3,668,500		)	3,063,184

Operating revenues separated between domestic and foreign operations and by segment is as follows:

	Year ending December 31,
(in thousands)	2012					2011					2010
	Domestic			Foreign		Domestic			Foreign		Domestic			Foreign
Data and Analytics	$	525,691		$	90,419	$	490,817		$	57,329	$	457,182		$	6,331
Mortgage Origination Services	635,375			240		481,837			239		466,065			52
Asset Management and Processing Solutions	335,224			—		329,273			—		368,536			—
Corporate	—			640		484			41,305		5,896			53,229
Eliminations	(19,956		)	—		(62,737		)	—		(77,015		)	—
Consolidated	$	1,476,334		$	91,299	$	1,239,674		$	98,873	$	1,220,664		$	59,612

Long-lived assets separated between domestic and foreign operations and by segment is as follows:

	As of December 31,
(in thousands)	2012						2011
	Domestic			Foreign			Domestic			Foreign
Data and Analytics	878,783			351,190			821,748			353,848
Mortgage Origination Services	876,761			4			895,227			41
Asset Management and Processing Solutions	167,382			—			177,122			—
Corporate	3,451,958			616,288			3,337,556			498,486
Eliminations	(3,286,202		)	(616,261		)	(3,169,785		)	(498,456		)
Consolidated (excluding assets for discontinued operations)	$	2,088,682		$	351,221		$	2,061,868		$	353,919