Investment in Affiliates, Net

12 Months Ended

Dec. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Investments in affiliates, net, were $39.0 million and $40.8 million as of December 31, 2017 and 2016, respectively. We recorded equity in losses of affiliates, net of tax of $1.2 million for the year ended December 31, 2017 and equity in earnings of affiliates, net of tax of $0.5 million and $13.7 million for the years ended December 31, 2016 and 2015, respectively. Income tax benefit of $0.7 million and income tax expense of $1.0 million and $9.1 million was recorded on those (losses)/earnings for the years ended December 31, 2017, 2016 and 2015, respectively. Dividends from equity method investments were $1.2 million, $9.0 million and $30.1 million for the years ended December 31, 2017, 2016 and 2015, respectively. We recorded $10.3 million, $10.3 million and $18.2 million, respectively, of operating revenues and $11.8 million, $11.2 million and $13.0 million, respectively, of operating expenses related to transactions with our investment in affiliates for the years ended December 31, 2017, 2016 and 2015.

In December 2015, we completed the acquisition of the remaining 49.9% interest in RELS LLC ("RELS"), a leading nation-wide provider of real estate asset valuation and appraisal solutions and recorded an investment gain of approximately $34.3 million due to the step-up in fair value on the previously held 50.1% interest, which is included in (loss)/gain on investment and other, net in the accompanying consolidated statements of operations. See Note 16 - Acquisitions for additional information. Prior to the acquisition, RELS contributed 84.9% of our total equity in earnings of affiliates, net of tax, for the year ended December 31, 2015. Based on the terms and conditions of the joint venture agreement, we had significant influence but did not have control of, or a majority voting interest in, the joint venture. Accordingly, prior to the acquisition of the remaining 49.9% interest in RELS in December 2015, this investment was accounted for under the equity method. Due to the acquisition of RELS, equity in (losses)/earnings of affiliates was not significant for the years ended December 31, 2016 and 2017.

The following summarizes financial information for this investment (assuming 100.0% ownership interest):



(in thousands)	2015
Statements of operations
Total revenues	$	244,647
Expenses and other	205,891
Net income attributable to RELS LLC	$	38,756
CoreLogic equity in earnings of affiliate, pre-tax	$	19,417

In December 2017, we acquired a 38.21% ownership of Location, Inc. for $6.5 million. In December 2017, we disposed of our remaining interest related to our joint venture investment in Speedy Title & Appraisal Review Services LLC ("STARS") for $1.0 million.

In November 2016, we acquired 12.97% ownership of Onthehouse Holding Limited (“OTH”) through a non-cash transaction of AUD $11.3 million or $8.3 million. The consideration comprised of our investment in PropertyIQ Ltd. and a business line from our Australian operations. The transaction resulted in a gain of AUD $9.9 million, or USD $7.3 million, recorded in (loss)/gain on investments and other, net in our accompanying consolidated statements of operations.

See Note 12 - Fair Value of Financial Instruments for further discussion on investment in affiliates, net measured at fair value on a nonrecurring basis.