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Investments in Affiliates
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Sep. 30, 2014
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| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments in Affiliates | Investment in Affiliates, net Investments in affiliates are accounted for under the equity method of accounting as we are deemed to have significant influence over the affiliate but do not control or have a majority voting interest in the affiliate. Investments are carried at the cost of acquisition, including subsequent capital contributions and loans from us, plus our equity in undistributed earnings or losses since inception of the investment. We recorded equity in earnings of affiliates, net of tax of $4.0 million and $5.7 million for the three months ended September 30, 2014 and 2013, respectively, and $10.3 million and $23.8 million for the nine months ended September 30, 2014 and 2013, respectively. We recorded income tax expense on these earnings of $2.5 million and $3.5 million for the three months ended September 30, 2014 and 2013, respectively, and $6.4 million and $14.8 million for the nine months ended September 30, 2014 and 2013, respectively. One of our subsidiaries owns a 50.1% interest in RELS LLC ("RELS"), a provider of appraisals and appraisal management services used in connection with mortgage loan originations. This investment in affiliate contributed 76.5% and 75.8% of our total equity in earnings of affiliates, net of tax, for the three months ended September 30, 2014 and 2013, respectively, and 81.6% and 73.0% for the nine months ended September 30, 2014 and 2013, respectively. The following summarized financial information for this investment (assuming 100% ownership interest), has been revised to correct an error in the financial statements prepared by RELS related to the presentation of expenses and other from a net basis to a gross basis for certain costs. The effect of the change was an increase to previously reported revenue and an increase to previously reported expenses and other of $1.8 million for the nine months ended September 30, 2013. There is no net income impact and therefore no impact on the total equity in earnings of affiliates recorded by the Company for this investment.
In March 2014, we acquired certain equity interests, assets and intellectual property; which we collectively refer to as "MSB/DataQuick." See Note 13 - Acquisitions for additional information. The acquisition included a 29.4% interest in Symbility Solutions Inc. ("Symbility"). In connection with the purchase price allocation, we preliminarily recorded $18.3 million to reflect our basis in Symbility. The purchase allocation included $11.3 million of basis difference between the purchase price and our interest in the net assets of Symbility, which is comprised of an indefinite-lived component of $2.0 million and a finite-lived component of $9.4 million with an estimated weighted-average life of 15 years. See Note 10 - Fair Value of Financial Instruments for further discussion on investment in affiliates, net, measured at fair value on a nonrecurring basis. |
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