Discontinued Operations

12 Months Ended

Dec. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

In December 2013, we concluded the businesses comprising the AMPS segment were not core businesses and thus we would actively pursue the sale of the AMPS reporting segment. As part of the process of marketing the sale of these businesses, we updated our long-term projections and obtained indicative fair market values from potential participants. The level of indicative values was below the net book value of the businesses being marketed, therefore, we recorded a pre-tax non-cash impairment charge related to goodwill of $51.8 million as of December 31, 2013. See Note 7 - Goodwill, Net for additional information.

For the year ended December 31, 2013, we recorded a $7.0 million loss on the sale of discontinued operations, net of tax primarily related to estimated liabilities associated with audits of previously disposed subsidiaries. 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 December 31, 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 and 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.

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 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. The net income from discontinued operations for the years ended December 31, 2013, 2012 and 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.

Each of these businesses is reflected in our accompanying consolidated financial statements as discontinued operations and the results of these businesses in the prior years have been recast to conform to the 2013 presentation.

Summarized below are certain assets and liabilities classified as discontinued operations as of December 31, 2013, 2012 and 2011:

(in thousands)	D&A				TPS
As of December 31, 2013	Marketing		Consumer		Appraisal		AMPS		Total
Current assets	$	177	$	149	$	200	$	35,863	$	36,389
Property and equipment, net	—		—		—		3,594		3,594
Goodwill and other identifiable intangible assets, net	—		—		—		97,577		97,577
Other assets	—		—		—		463		463
Total assets	$	177	$	149	$	200	$	137,497	$	138,023
Total liabilities	$	935	$	88	$	3,695	$	25,591	$	30,309
As of December 31, 2012
Current assets	$	204	$	251	$	337	$	50,500	$	51,292
Property and equipment, net	—		—		—		5,420		5,420
Goodwill and other identifiable intangible assets, net	—		—		—		149,959		149,959
Other assets	—		—		—		964		964
Total assets	$	204	$	251	$	337	$	206,843	$	207,635
Total liabilities	$	776	$	691	$	1,920	$	32,637	$	36,024

Summarized below are the components of our income/(loss) from discontinued operations for the years ended December 31, 2013, 2012 and 2011:

(in thousands)	D&A						TPS
For the year ended December 31, 2013	Marketing			Consumer			Appraisal			AMPS			Total
Operating revenue	$	—		$	—		$	—		$	266,887		$	266,887
(Loss)/income from discontinued operations before income taxes	$	(2,129	)	$	196		$	(6,194	)	$	2,243		$	(5,884	)
(Benefit)/provision for income taxes	(814		)	75			(2,368		)	12,687			9,580
(Loss)/income from discontinued operations, net of tax	$	(1,315	)	$	121		$	(3,826	)	$	(10,444	)	$	(15,464	)
For the year ended December 31, 2012
Operating revenue	$	—		$	55,773		$	25,138		$	378,685		$	459,596
(Loss)/income from discontinued operations before income taxes	$	(122	)	$	5,026		$	(21,375	)	$	50,787		$	34,316
Provision/(benefit) for income taxes	4,891			15			(5,188		)	16,975			16,693
(Loss)/income from discontinued operations, net of tax	$	(5,013	)	$	5,011		$	(16,187	)	$	33,812		$	17,623
For the year ended December 31, 2011
Operating revenue	$	27,387		$	94,755		$	69,890		$	394,484		$	586,516
(Loss)/income from discontinued operations before income taxes	$	(164,094	)	$	(10,453	)	$	(20,178	)	$	48,579		$	(146,146	)
(Benefit)/provision for income taxes	(61,947		)	(2,205		)	(6,172		)	19,890			(50,434		)
(Loss)/income from discontinued operations, net of tax	$	(102,147	)	$	(8,248	)	$	(14,006	)	$	28,689		$	(95,712	)