Segment Information

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

In December 2017, we renamed our Property Intelligence segment to PIRM and also renamed our Risk Management and Work Flow segment to UWS. As part of this resegmentation, we transferred our valuation solution business from our PIRM segment to the UWS segment and transferred our rental property solutions business from our UWS segment to our PIRM segment. The changes above reflect, and result from, corresponding changes in our management structure, go-to-market strategy, and internal reporting. As a result of these actions, we have organized our reportable segments into the following two segments: PIRM and UWS. All segment reporting and disclosures presented herein reflect these changes. See Note 1 - Description of the Company for further discussion.

Property Intelligence & Risk Management Solutions. Our PIRM segment combines property information, mortgage information and consumer information to deliver unique housing market and property-level insights, predictive analytics and risk management capabilities. We have also developed proprietary technology and software platforms to access, automate or track this information and assist our clients with decision-making and compliance tools in the real estate industry, insurance industry and the single and multifamily industry. We deliver this information directly to our clients in a standard format over the web, through hosted software platforms or in bulk data form. Our solutions include property insights and insurance & spatial solutions in North America, Western Europe and Asia Pacific. The segment's primary clients are commercial banks, mortgage lenders and brokers, investment banks, fixed-income investors, real estate agents, MLS companies, property and casualty insurance companies, title insurance companies, government agencies and government-sponsored enterprises.

Our PIRM segment includes intercompany revenues of $6.1 million, $6.9 million, and $4.8 million for the years ended December 31, 2017, 2016 and 2015, respectively; and intercompany expenses of $3.2 million, $3.9 million and $4.8 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Underwriting & Workflow Solutions. Our UWS segment combines property information, mortgage information and consumer information to provide comprehensive mortgage origination and monitoring solutions, including, underwriting-related solutions and data-enabled valuations and appraisals. We have also developed proprietary technology and software platforms to access, automate or track this information and assist our clients with vetting and onboarding prospects, meeting compliance regulations and understanding, diagnosing and monitoring property values. Our solutions include property tax solutions, valuation solutions, credit solutions and flood services in North America. The segment’s primary clients are large, national mortgage lenders and servicers, but we also serve regional mortgage lenders and brokers, credit unions, commercial banks, fixed-income investors, government agencies and property and casualty insurance companies.

Our UWS segment includes intercompany revenues of $3.2 million, $3.9 million, and $4.8 million for the years ended December 31, 2017, 2016 and 2015, respectively; and intercompany expenses of $6.1 million, $6.9 million and $4.8 million for the years ended December 31, 2017, 2016 and 2015, respectively.

We also separately report on our corporate and eliminations. Corporate consists primarily of corporate personnel and other expenses associated with our corporate functions and facilities, investment gains and losses, equity in earnings of affiliates, net of tax, and interest expense.

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

Selected segment financial information is as follows:

(in thousands)
For the Year Ended December 31, 2017	PIRM			UWS			Corporate			Eliminations			Consolidated (Excluding Discontinued Operations)
Operating revenue	$	703,032		$	1,157,432		$	—		$	(9,347	)	$	1,851,117
Depreciation and amortization	$	99,558		$	57,397		$	20,851		$	—		$	177,806
Operating income	$	89,129		$	233,366		$	(83,877	)	$	—		$	238,618
Equity in (losses)/earnings of affiliates, net of tax	$	(420	)	$	(1,258	)	$	492		$	—		$	(1,186	)
Net income from continuing operations	$	86,988		$	222,928		$	(160,382	)	$	—		$	149,534
Capital expenditures	$	56,157		$	7,569		$	11,772		$	—		$	75,498
For the Year Ended December 31, 2016
Operating revenue	$	706,496		$	1,256,841		$	12		$	(10,792	)	$	1,952,557
Depreciation and amortization	$	101,196		$	53,823		$	17,559		$	—		$	172,578
Operating income	$	101,700		$	255,583		$	(79,343	)	$	—		$	277,940
Equity in (losses)/earnings of affiliates, net of tax	$	(1,432	)	$	3,020		$	(1,092	)	$	—		$	496
Net income from continuing operations	$	105,349		$	237,767		$	(233,170	)	$	—		$	109,946
Capital expenditures	$	53,217		$	8,951		$	18,550		$	—		$	80,718
For the Year Ended December 31, 2015
Operating revenue	$	712,335		$	825,339		$	39		$	(9,603	)	$	1,528,110
Depreciation and amortization	$	101,422		$	32,837		$	16,118		$	—		$	150,377
Operating income	$	96,707		$	192,367		$	(85,625	)	$	—		$	203,449
Equity in (losses)/earnings of affiliates, net of tax	$	(1,569	)	$	24,191		$	(8,902	)	$	—		$	13,720
Net income from continuing operations	$	94,558		$	216,111		$	(181,117	)	$	—		$	129,552
Capital expenditures	$	56,467		$	5,149		$	18,942		$	—		$	80,558

(in thousands)
As of December 31, 2017	PIRM		UWS		Corporate		Eliminations			Consolidated (Excluding Discontinued Operations)
Investment in affiliates, net	$	31,691	$	4,552	$	2,746	$	—		$	38,989
Long-lived assets	$	1,721,815	$	1,996,417	$	5,542,323	$	(5,613,410	)	$	3,647,145
Total assets	$	1,911,222	$	2,151,092	$	5,628,824	$	(5,614,108	)	$	4,077,030
As of December 31, 2016
Investment in affiliates, net	$	27,218	$	8,592	$	4,999	$	—		$	40,809
Long-lived assets	$	1,691,836	$	1,738,627	$	5,510,684	$	(5,425,500	)	$	3,515,647
Total assets	$	1,842,361	$	1,914,814	$	5,575,846	$	(5,426,149	)	$	3,906,872

Operating revenue is attributed to countries based on location of the revenue-generating business. Operating revenue separated between domestic and foreign operations and by segment is as follows:

	Year Ended December 31,
(in thousands)	2017					2016					2015
	Domestic			Foreign		Domestic			Foreign		Domestic			Foreign
PIRM	$	545,311		$	157,721	$	560,085		$	146,411	$	584,396		$	127,939
UWS	1,157,432			—		1,256,806			35		822,601			2,738
Corporate	—			—		—			12		—			39
Eliminations	(9,347		)	—		(10,792		)	—		(9,603		)	—
Consolidated	$	1,693,396		$	157,721	$	1,806,099		$	146,458	$	1,397,394		$	130,716

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

	As of December 31,
(in thousands)	2017						2016
	Domestic			Foreign			Domestic			Foreign
PIRM	$	1,392,580		$	329,235		$	1,374,390		$	317,446
UWS	1,996,417			—			1,738,627			—
Corporate	4,796,378			745,945			4,764,740			745,944
Eliminations	(4,867,465		)	(745,945		)	(4,679,560		)	(745,940		)
Consolidated (excluding assets for discontinued operations)	$	3,317,910		$	329,235		$	3,198,197		$	317,450