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ACQUISITIONS (Tables)
 9 Months Ended
Sep. 30, 2014
Acquisitions  
Schedule of the adjusted allocation of the purchase price
The preliminary allocation of the purchase price is as follows:
(in thousands)
 
 
 
Cash
$
726

Accounts receivable, net
1,120

Prepaid expenses
38

Premises and equipment, net
2,068

Customer relationship
3,143

Goodwill
10,443

 
17,538

Accounts payable and accrued expenses
(881
)
 
 
Purchase price
$
16,657
Business Acquisition, Pro Forma Information
The following tables present the unaudited pro forma consolidated results of operations for the third quarter of 2013 and the nine months ended September 30, 2013 as if the Homeward, ResCap Business and Equator transactions had occurred at the beginning of the period presented.

 
 
Three months ended 
 September 30, 2013
(in thousands, except per share amounts)
 
As reported

 
Pro forma

 
 
 
 
 
Revenue
 
$
210,835

 
$
225,764

Net income attributable to Altisource
 
36,008

 
34,157

Earnings per share — Diluted
 
1.42

 
1.35


 
 
Nine months ended 
 September 30, 2013
(in thousands, except per share amounts)
 
As reported
 
Pro forma
 
 
 
 
 
Revenue
 
$
545,772

 
$
624,049

Net income attributable to Altisource
 
94,457

 
95,865

Earnings per share — Diluted
 
3.77

 
3.82
Homeward servicing portfolio
  
Acquisitions  
Schedule of the adjusted allocation of the purchase price
The final adjusted allocation of the purchase price is as follows:
(in thousands)
 
 
 
Premises and equipment
$
1,559

Customer relationship
75,609

Goodwill
2,039

 
79,207

Accounts payable and accrued expenses
(3,390
)
 
 
Purchase price
$
75,817
Schedule of estimated life of identified assets acquired
 
Estimated life
(in years)
 
 
Premises and equipment
3 - 5
Customer relationship
7
Equator
  
Acquisitions  
Schedule of the adjusted allocation of the purchase price
The final adjusted allocation of the purchase price is as follows:

 
 
Initial purchase price allocation
 
Adjustments
 
Adjusted purchase price allocation
(in thousands)
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
105

 
$
105

Accounts receivable
 
9,293

 
3,490

 
12,783

Prepaid expenses and other current assets
 
954

 
(498
)
 
456

Premises and equipment
 
16,974

 
—

 
16,974

Customer relationships and trade names
 
43,393

 
—

 
43,393

Goodwill
 
82,460

 
—

 
82,460

Other non-current assets
 
242

 
78

 
320

Assets acquired
 
153,316

 
3,175

 
156,491

Accounts payable and accrued expenses
 
(7,232
)
 
536

 
(6,696
)
Deferred revenue
 
(36,689
)
 
—

 
(36,689
)
Liabilities assumed
 
(43,921
)
 
536

 
(43,385
)
 
 
 
 
 
 
 
Purchase price
 
$
109,395

 
$
3,711

 
$
113,106
Schedule of estimated life of identified assets acquired
 
 
Estimated life
(in years)
 
 
 
Premises and equipment (excluding internally developed software)
 
3 - 5
Internally developed software (included in premises and equipment)
 
7
Customer relationships (weighted average)
 
15
Trade names
 
4
Schedule of Business Acquisitions by Acquisition Change in Contingent Consideration and Goodwill Impairment
The following table presents the impact of the change in the fair value of the Equator Earn Out and Equator goodwill impairment for the nine months ended September 30, 2014, which are included in selling, general and administrative expenses in the condensed consolidated statements of operations:
(in thousands)
 
 
 
 
 
Change in the fair value of Equator Earn Out
 
$
(37,924
)
Goodwill impairment
 
37,473

 
 
 
 
 
$
(451
)