Delaware | 95-1068610 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
40 Pacifica, Irvine, California | 92618-7471 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | o |
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | o |
Part I: | Financial Information | |
Item 1. | Financial Statements (unaudited) | |
A. Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015 | ||
B. Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2016 and 2015 | ||
C. Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2015 | ||
D. Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015 | ||
E. Condensed Consolidated Statement of Stockholder's Equity for the nine months ended September 30, 2016 | ||
F. Notes to Condensed Consolidated Financial Statements | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
Part II: | Other Information | |
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | Exhibits |
(in thousands, except par value) | September 30, | December 31, | |||||
Assets | 2016 | 2015 | |||||
Current assets: | |||||||
Cash and cash equivalents | $ | 79,015 | $ | 99,090 | |||
Marketable securities | 21,819 | 22,709 | |||||
Accounts receivable (less allowance for doubtful accounts of $8,011 and $6,212 as of September 30, 2016 and December 31, 2015, respectively) | 283,145 | 240,988 | |||||
Prepaid expenses and other current assets | 58,194 | 45,882 | |||||
Income tax receivable | 2,753 | 37,029 | |||||
Deferred income tax assets, current | — | 95,887 | |||||
Assets of discontinued operations | 681 | 681 | |||||
Total current assets | 445,607 | 542,266 | |||||
Property and equipment, net | 443,589 | 375,654 | |||||
Goodwill, net | 2,109,944 | 1,881,547 | |||||
Other intangible assets, net | 494,758 | 352,148 | |||||
Capitalized data and database costs, net | 333,058 | 327,841 | |||||
Investment in affiliates, net | 65,347 | 69,205 | |||||
Deferred income tax assets, long-term | 2,180 | 2,219 | |||||
Restricted cash | 8,936 | 10,926 | |||||
Other assets | 108,156 | 111,910 | |||||
Total assets | $ | 4,011,575 | $ | 3,673,716 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 180,928 | $ | 158,213 | |||
Accrued salaries and benefits | 98,389 | 117,187 | |||||
Deferred revenue, current | 285,221 | 269,071 | |||||
Mandatorily redeemable noncontrolling interests | — | 18,981 | |||||
Current portion of long-term debt | 87,484 | 48,497 | |||||
Liabilities of discontinued operations | 3,859 | 2,527 | |||||
Total current liabilities | 655,881 | 614,476 | |||||
Long-term debt, net of current | 1,527,224 | 1,288,177 | |||||
Deferred revenue, net of current | 468,666 | 448,819 | |||||
Deferred income tax liabilities, long term | 109,667 | 107,249 | |||||
Other liabilities | 169,518 | 165,505 | |||||
Total liabilities | 2,930,956 | 2,624,226 | |||||
Stockholders' equity: | |||||||
Preferred stock, $0.00001 par value; 500 shares authorized, no shares issued or outstanding | — | — | |||||
Common stock, $0.00001 par value; 180,000 shares authorized; 86,362 and 88,228 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively | 1 | 1 | |||||
Additional paid-in capital | 471,679 | 551,206 | |||||
Retained earnings | 721,366 | 618,399 | |||||
Accumulated other comprehensive loss | (112,427 | ) | (120,116 | ) | |||
Total stockholders' equity | 1,080,619 | 1,049,490 | |||||
Total liabilities and equity | $ | 4,011,575 | $ | 3,673,716 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in thousands, except per share amounts) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Operating revenues | $ | 523,896 | $ | 386,439 | $ | 1,477,644 | $ | 1,137,224 | |||||||
Cost of services (excluding depreciation and amortization shown below) | 275,469 | 192,838 | 785,578 | 568,125 | |||||||||||
Selling, general and administrative expenses | 119,105 | 91,241 | 346,984 | 283,517 | |||||||||||
Depreciation and amortization | 44,498 | 36,440 | 127,433 | 109,689 | |||||||||||
Total operating expenses | 439,072 | 320,519 | 1,259,995 | 961,331 | |||||||||||
Operating income | 84,824 | 65,920 | 217,649 | 175,893 | |||||||||||
Interest expense: | |||||||||||||||
Interest income | 736 | 645 | 1,921 | 2,985 | |||||||||||
Interest expense | 14,448 | 17,207 | 47,128 | 48,522 | |||||||||||
Total interest expense, net | (13,712 | ) | (16,562 | ) | (45,207 | ) | (45,537 | ) | |||||||
Loss on early extinguishment of debt and other, net | (19,795 | ) | (2,448 | ) | (17,088 | ) | (3,494 | ) | |||||||
Income from continuing operations before equity in earnings of affiliates and income taxes | 51,317 | 46,910 | 155,354 | 126,862 | |||||||||||
Provision for income taxes | 15,922 | 21,765 | 51,984 | 47,387 | |||||||||||
Income from continuing operations before equity in earnings of affiliates | 35,395 | 25,145 | 103,370 | 79,475 | |||||||||||
Equity in earnings of affiliates, net of tax | 607 | 3,497 | 595 | 11,931 | |||||||||||
Net income from continuing operations | 36,002 | 28,642 | 103,965 | 91,406 | |||||||||||
Loss from discontinued operations, net of tax | (936 | ) | (117 | ) | (998 | ) | (445 | ) | |||||||
Net income | 35,066 | 28,525 | 102,967 | 90,961 | |||||||||||
Less: Net income attributable to noncontrolling interests | — | 357 | — | 823 | |||||||||||
Net income attributable to CoreLogic | $ | 35,066 | $ | 28,168 | $ | 102,967 | $ | 90,138 | |||||||
Amounts attributable to CoreLogic stockholders: | |||||||||||||||
Net income from continuing operations | $ | 36,002 | $ | 28,285 | $ | 103,965 | $ | 90,583 | |||||||
Loss from discontinued operations, net of tax | (936 | ) | (117 | ) | (998 | ) | (445 | ) | |||||||
Net income attributable to CoreLogic | $ | 35,066 | $ | 28,168 | $ | 102,967 | $ | 90,138 | |||||||
Basic income per share: | |||||||||||||||
Net income from continuing operations | $ | 0.41 | $ | 0.32 | $ | 1.18 | $ | 1.01 | |||||||
Loss from discontinued operations, net of tax | (0.01 | ) | — | (0.01 | ) | — | |||||||||
Net income attributable to CoreLogic | $ | 0.40 | $ | 0.32 | $ | 1.17 | $ | 1.01 | |||||||
Diluted income per share: | |||||||||||||||
Net income from continuing operations | $ | 0.40 | $ | 0.31 | $ | 1.16 | $ | 1.00 | |||||||
Loss from discontinued operations, net of tax | (0.01 | ) | — | (0.01 | ) | — | |||||||||
Net income attributable to CoreLogic | $ | 0.39 | $ | 0.31 | $ | 1.15 | $ | 1.00 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 87,584 | 88,719 | 88,141 | 89,374 | |||||||||||
Diluted | 89,188 | 90,154 | 89,701 | 90,741 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net income | $ | 35,066 | $ | 28,525 | $ | 102,967 | $ | 90,961 | |||||||
Other comprehensive income/(loss) | |||||||||||||||
Market value adjustments to marketable securities, net of tax | (463 | ) | (733 | ) | (550 | ) | 216 | ||||||||
Market value adjustments on interest rate swap, net of tax | 365 | (2,043 | ) | (2,673 | ) | (3,110 | ) | ||||||||
Foreign currency translation adjustments | 5,922 | (23,934 | ) | 11,232 | (45,080 | ) | |||||||||
Supplemental benefit plans adjustments, net of tax | (107 | ) | (98 | ) | (320 | ) | (293 | ) | |||||||
Total other comprehensive income/(loss) | 5,717 | (26,808 | ) | 7,689 | (48,267 | ) | |||||||||
Comprehensive income | 40,783 | 1,717 | 110,656 | 42,694 | |||||||||||
Less: Comprehensive income attributable to the noncontrolling interests | — | 357 | — | 823 | |||||||||||
Comprehensive income attributable to CoreLogic | $ | 40,783 | $ | 1,360 | $ | 110,656 | $ | 41,871 |
For the Nine Months Ended | |||||||
September 30, | |||||||
(in thousands) | 2016 | 2015 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 102,967 | $ | 90,961 | |||
Less: Loss from discontinued operations, net of tax | (998 | ) | (445 | ) | |||
Net income from continuing operations | 103,965 | 91,406 | |||||
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | |||||||
Depreciation and amortization | 127,433 | 109,689 | |||||
Amortization of debt issuance costs | 4,333 | 4,936 | |||||
Provision for bad debt and claim losses | 11,064 | 6,328 | |||||
Share-based compensation | 29,859 | 26,419 | |||||
Excess tax benefit related to stock options | (2,352 | ) | (6,284 | ) | |||
Equity in earnings of affiliates, net of taxes | (595 | ) | (11,931 | ) | |||
Gain on sale of property and equipment | (21 | ) | (91 | ) | |||
Deferred income tax | 10,283 | (1,713 | ) | ||||
Loss on early extinguishment of debt and other, net | 17,088 | 3,494 | |||||
Change in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (36,737 | ) | (23,570 | ) | |||
Prepaid expenses and other current assets | (8,671 | ) | 3,420 | ||||
Accounts payable and accrued expenses | (3,393 | ) | (8,392 | ) | |||
Deferred revenue | 35,814 | 56,373 | |||||
Income taxes | 32,981 | 2,072 | |||||
Dividends received from investments in affiliates | 8,773 | 26,516 | |||||
Other assets and other liabilities | (12,550 | ) | (19,008 | ) | |||
Net cash provided by operating activities - continuing operations | 317,274 | 259,664 | |||||
Net cash used in operating activities - discontinued operations | (468 | ) | (7,584 | ) | |||
Total cash provided by operating activities | $ | 316,806 | $ | 252,080 | |||
Cash flows from investing activities: | |||||||
Purchase of subsidiary shares from noncontrolling interests | $ | (18,023 | ) | $ | — | ||
Purchases of property and equipment | (35,156 | ) | (30,009 | ) | |||
Purchases of capitalized data and other intangible assets | (27,212 | ) | (27,706 | ) | |||
Cash paid for acquisitions, net of cash acquired | (396,816 | ) | (119,346 | ) | |||
Purchases of investments | (3,366 | ) | (3,748 | ) | |||
Proceeds from sale of property and equipment | 21 | 94 | |||||
Proceeds from sale of investments | 2,451 | — | |||||
Change in restricted cash | 1,990 | 1,496 | |||||
Net cash used in investing activities - continuing operations | (476,111 | ) | (179,219 | ) | |||
Net cash provided by investing activities - discontinued operations | — | — | |||||
Total cash used in investing activities | $ | (476,111 | ) | $ | (179,219 | ) | |
Cash flows from financing activities: | |||||||
Proceeds from long-term debt | $ | 915,000 | $ | 114,375 | |||
Debt issuance costs | (6,314 | ) | (6,452 | ) | |||
Repayment of long-term debt | (647,286 | ) | (46,999 | ) | |||
Debt extinguishment premium | (14,246 | ) | — | ||||
Proceeds from issuance of shares in connection with share-based compensation | 13,119 | 19,554 | |||||
Tax withholdings related to net share settlements | (9,544 | ) | (14,425 | ) | |||
Shares repurchased and retired | (112,961 | ) | (97,430 | ) | |||
Excess tax benefit related to stock options | 2,352 | 6,284 | |||||
Net cash provided by/(used in) financing activities - continuing operations | 140,120 | (25,093 | ) | ||||
Net cash provided by financing activities - discontinued operations | — | — | |||||
Total cash provided by/(used in) financing activities | $ | 140,120 | $ | (25,093 | ) | ||
Effect of exchange rate on cash | (890 | ) | 6,757 | ||||
Net change in cash and cash equivalents | (20,075 | ) | 54,525 | ||||
Cash and cash equivalents at beginning of period | 99,090 | 104,677 | |||||
Less: Change in cash and cash equivalents - discontinued operations | (468 | ) | (7,584 | ) | |||
Plus: Cash swept to discontinued operations | (468 | ) | (8,118 | ) | |||
Cash and cash equivalents at end of period | $ | 79,015 | $ | 158,668 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid for interest | $ | 45,075 | $ | 40,968 | |||
Cash paid for income taxes | $ | 12,633 | $ | 40,946 | |||
Cash refunds from income taxes | $ | 489 | $ | 3,559 | |||
Non-cash investing activities: | |||||||
Capital expenditures included in accounts payable and accrued liabilities | $ | 4,105 | $ | 5,353 |
(in thousands) | Common Stock Shares | Common Stock Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | ||||||||||||||||
Balance as of December 31, 2015 | 88,228 | $ | 1 | $ | 551,206 | $ | 618,399 | $ | (120,116 | ) | $ | 1,049,490 | ||||||||||
Net income | — | — | — | 102,967 | — | 102,967 | ||||||||||||||||
Shares issued in connection with share-based compensation | 1,033 | — | 13,119 | — | — | 13,119 | ||||||||||||||||
Tax withholdings related to net share settlements | — | — | (9,544 | ) | — | — | (9,544 | ) | ||||||||||||||
Share-based compensation | — | — | 29,859 | — | — | 29,859 | ||||||||||||||||
Shares repurchased and retired | (2,899 | ) | — | (112,961 | ) | — | — | (112,961 | ) | |||||||||||||
Other comprehensive income | — | — | — | — | 7,689 | 7,689 | ||||||||||||||||
Balance as of September 30, 2016 | 86,362 | $ | 1 | $ | 471,679 | $ | 721,366 | $ | (112,427 | ) | $ | 1,080,619 |
2016 | 2015 | ||||||
Cumulative foreign currency translation | $ | (103,195 | ) | $ | (114,427 | ) | |
Cumulative supplemental benefit plans | (3,860 | ) | (3,540 | ) | |||
Net unrecognized losses on interest rate swap | (5,372 | ) | (2,699 | ) | |||
Net unrealized gains on marketable securities | — | 550 | |||||
Accumulated other comprehensive loss | $ | (112,427 | ) | $ | (120,116 | ) |
For the Three Months Ended | For the Nine Months Ended | ||||||
(in thousands) | September 30, 2015 | September 30, 2015 | |||||
Statements of income | |||||||
Total revenues | $ | 62,503 | $ | 190,707 | |||
Expenses and other | 53,442 | 158,509 | |||||
Net income attributable to RELS LLC | $ | 9,061 | $ | 32,198 | |||
CoreLogic equity in earnings of affiliate | $ | 4,540 | $ | 16,131 |
(in thousands) | 2016 | 2015 | |||||
Land | $ | 7,476 | $ | 4,000 | |||
Buildings | 6,293 | 111 | |||||
Furniture and equipment | 62,062 | 62,140 | |||||
Capitalized software | 874,871 | 759,925 | |||||
Leasehold improvements | 29,815 | 29,038 | |||||
980,517 | 855,214 | ||||||
Less accumulated depreciation | (536,928 | ) | (479,560 | ) | |||
Property and equipment, net | $ | 443,589 | $ | 375,654 |
(in thousands) | PI | RMW | Consolidated | ||||||||
Balance as of January 1, 2016 | |||||||||||
Goodwill | $ | 963,680 | $ | 925,392 | $ | 1,889,072 | |||||
Accumulated impairment losses | (600 | ) | (6,925 | ) | (7,525 | ) | |||||
Goodwill, net | 963,080 | 918,467 | 1,881,547 | ||||||||
Acquisitions | 219,427 | — | 219,427 | ||||||||
Translation adjustments | 8,970 | — | 8,970 | ||||||||
Balance as of September 30, 2016 | |||||||||||
Goodwill, net | $ | 1,191,477 | $ | 918,467 | $ | 2,109,944 |
September 30, 2016 | December 31, 2015 | ||||||||||||||||||||||
(in thousands) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||
Client lists | $ | 640,612 | $ | (249,639 | ) | $ | 390,973 | $ | 496,192 | $ | (219,887 | ) | $ | 276,305 | |||||||||
Non-compete agreements | 28,110 | (10,045 | ) | 18,065 | 9,302 | (7,983 | ) | 1,319 | |||||||||||||||
Trade names and licenses | 121,717 | (35,997 | ) | 85,720 | 102,297 | (27,773 | ) | 74,524 | |||||||||||||||
$ | 790,439 | $ | (295,681 | ) | $ | 494,758 | $ | 607,791 | $ | (255,643 | ) | $ | 352,148 |
(in thousands) | |||
Remainder of 2016 | $ | 14,119 | |
2017 | 55,986 | ||
2018 | 55,182 | ||
2019 | 52,986 | ||
2020 | 50,602 | ||
Thereafter | 265,883 | ||
$ | 494,758 |
September 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
(in thousands) | Gross | Debt Issuance Costs | Net | Gross | Debt Issuance Costs | Net | ||||||||||||||||||
Bank debt: | ||||||||||||||||||||||||
Term loan facility borrowings due April 2020, weighted-average interest rate of 2.25% and 1.96% as of September 30, 2016 and December 31, 2015, respectively | $ | 1,315,313 | $ | (13,479 | ) | $ | 1,301,834 | $ | 828,750 | $ | (9,720 | ) | $ | 819,030 | ||||||||||
Revolving line of credit borrowings due April 2020, weighted-average interest rate of 2.24%and 1.96% as of September 30, 2016 and December 31, 2015, respectively | 255,000 | (5,150 | ) | 249,850 | 75,000 | (6,262 | ) | 68,738 | ||||||||||||||||
Notes: | ||||||||||||||||||||||||
7.25% senior notes due June 2021 | — | — | — | 393,000 | (11,121 | ) | 381,879 | |||||||||||||||||
7.55% senior debentures due April 2028 | 59,645 | (217 | ) | 59,428 | 59,645 | (231 | ) | 59,414 | ||||||||||||||||
Acquisition-related note: | ||||||||||||||||||||||||
Non-interest bearing acquisition note, $5.0 million installment due March 2016 | — | — | — | 4,924 | — | 4,924 | ||||||||||||||||||
Other debt: | ||||||||||||||||||||||||
Various debt instruments with maturities through 2019 | 3,596 | — | 3,596 | 2,689 | — | 2,689 | ||||||||||||||||||
Total long-term debt | 1,633,554 | (18,846 | ) | 1,614,708 | 1,364,008 | (27,334 | ) | 1,336,674 | ||||||||||||||||
Less current portion of long-term debt | 87,484 | — | 87,484 | 48,497 | — | 48,497 | ||||||||||||||||||
Long-term debt, net of current portion | $ | 1,546,070 | $ | (18,846 | ) | $ | 1,527,224 | $ | 1,315,511 | $ | (27,334 | ) | $ | 1,288,177 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Numerator for basic and diluted net income per share: | |||||||||||||||
Net income from continuing operations | $ | 36,002 | $ | 28,285 | $ | 103,965 | $ | 90,583 | |||||||
Loss from discontinued operations, net of tax | (936 | ) | (117 | ) | (998 | ) | (445 | ) | |||||||
Net income attributable to CoreLogic | $ | 35,066 | $ | 28,168 | $ | 102,967 | $ | 90,138 | |||||||
Denominator: | |||||||||||||||
Weighted-average shares for basic income per share | 87,584 | 88,719 | 88,141 | 89,374 | |||||||||||
Dilutive effect of stock options and restricted stock units | 1,604 | 1,435 | 1,560 | 1,367 | |||||||||||
Weighted-average shares for diluted income per share | 89,188 | 90,154 | 89,701 | 90,741 | |||||||||||
Income per share | |||||||||||||||
Basic: | |||||||||||||||
Net income from continuing operations | $ | 0.41 | $ | 0.32 | $ | 1.18 | $ | 1.01 | |||||||
Loss from discontinued operations, net of tax | (0.01 | ) | — | (0.01 | ) | — | |||||||||
Net income attributable to CoreLogic | $ | 0.40 | $ | 0.32 | $ | 1.17 | $ | 1.01 | |||||||
Diluted: | |||||||||||||||
Net income from continuing operations | $ | 0.40 | $ | 0.31 | $ | 1.16 | $ | 1.00 | |||||||
Loss from discontinued operations, net of tax | (0.01 | ) | — | (0.01 | ) | — | |||||||||
Net income attributable to CoreLogic | $ | 0.39 | $ | 0.31 | $ | 1.15 | $ | 1.00 |
Fair Value Measurements Using | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||
Financial Assets: | |||||||||||||||
Cash and cash equivalents | $ | 79,015 | $ | — | $ | — | $ | 79,015 | |||||||
Restricted cash | — | 8,936 | — | 8,936 | |||||||||||
Marketable securities | 21,819 | — | — | 21,819 | |||||||||||
Total Financial Assets | $ | 100,834 | $ | 8,936 | $ | — | $ | 109,770 | |||||||
Financial Liabilities: | |||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 4,900 | $ | 4,900 | |||||||
Total debt | — | 1,643,235 | — | 1,643,235 | |||||||||||
Total Financial Liabilities | $ | — | $ | 1,643,235 | $ | 4,900 | $ | 1,648,135 | |||||||
Derivatives: | |||||||||||||||
Liability for interest rate swap agreements | $ | — | $ | 8,699 | $ | — | $ | 8,699 |
Fair Value Measurements Using | |||||||||||
(in thousands) | Level 1 | Level 2 | Fair Value | ||||||||
Financial Assets: | |||||||||||
Cash and cash equivalents | $ | 99,090 | $ | — | $ | 99,090 | |||||
Restricted cash | — | 10,926 | 10,926 | ||||||||
Marketable securities | 22,709 | — | 22,709 | ||||||||
Total Financial Assets | $ | 121,799 | $ | 10,926 | $ | 132,725 | |||||
Financial Liabilities: | |||||||||||
Total debt | $ | — | $ | 1,315,473 | $ | 1,315,473 | |||||
Derivatives: | |||||||||||
Liability for interest rate swap agreements | $ | — | $ | 4,370 | $ | 4,370 |
Number of | Weighted-Average Grant-Date | |||||
(in thousands, except weighted-average fair value prices) | Shares | Fair Value | ||||
Unvested RSUs outstanding at December 31, 2015 | 1,537 | $ | 32.92 | |||
RSUs granted | 968 | $ | 34.78 | |||
RSUs vested | (755 | ) | $ | 32.34 | ||
RSUs forfeited | (96 | ) | $ | 34.39 | ||
Unvested RSUs outstanding at September 30, 2016 | 1,654 | $ | 34.18 |
For the Nine Months Ended September 30, | |||||
2016 | 2015 | ||||
Expected dividend yield | — | % | — | % | |
Risk-free interest rate (1) | 0.99 | % | 0.93 | % | |
Expected volatility (2) | 25.12 | % | 24.01 | % | |
Average total stockholder return (2) | 1.48 | % | 8.37 | % |
(1) | The risk-free interest rate for the periods within the contractual term of the PBRSUs is based on the U.S. Treasury yield curve in effect at the time of the grant. |
(2) | The expected volatility and average total stockholder return are measures of the amount by which a stock price has fluctuated or is expected to fluctuate based primarily on our and our peers' historical data. |
Number of | Weighted-Average Grant-Date | |||||
(in thousands, except weighted-average fair value prices) | Shares | Fair Value | ||||
Unvested PBRSUs outstanding at December 31, 2015 | 659 | $ | 29.15 | |||
PBRSUs granted | 285 | $ | 35.39 | |||
PBRSUs vested | (94 | ) | $ | 26.49 | ||
PBRSUs forfeited | (112 | ) | $ | 22.37 | ||
Unvested PBRSUs outstanding at September 30, 2016 | 738 | $ | 34.13 |
(in thousands, except weighted-average price) | Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||
Options outstanding at December 31, 2015 | 1,826 | $ | 21.33 | |||||||||
Options granted | — | $ | — | |||||||||
Options exercised | (313 | ) | $ | 21.72 | ||||||||
Options canceled | (1 | ) | $ | 30.52 | ||||||||
Options outstanding at September 30, 2016 | 1,512 | $ | 21.24 | 4.8 | $ | 27,152 | ||||||
Options vested and expected to vest at September 30, 2016 | 1,509 | $ | 21.23 | 4.8 | $ | 27,141 | ||||||
Options exercisable at September 30, 2016 | 1,440 | $ | 20.72 | 4.7 | $ | 26,645 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
RSUs | $ | 6,209 | $ | 5,699 | $ | 19,757 | $ | 18,532 | |||||||
PBRSUs | 3,766 | 1,433 | 8,312 | 5,485 | |||||||||||
Stock options | 213 | 443 | 813 | 1,480 | |||||||||||
Employee stock purchase plan | 352 | 305 | 977 | 922 | |||||||||||
$ | 10,540 | $ | 7,880 | $ | 29,859 | $ | 26,419 |
(in thousands) | |||
Remaining 2016 | $ | 8,216 | |
2017 | 21,983 | ||
2018 | 21,072 | ||
2019 | 19,790 | ||
2020 | 16,862 | ||
Thereafter | 82,144 | ||
$ | 170,067 |
(in thousands) | ||||||||||||||||||||
As of September 30, 2016 | PI | RMW | ELI | AMPS | Total | |||||||||||||||
Deferred income tax asset and other current assets | $ | 326 | $ | (217 | ) | $ | — | $ | 572 | $ | 681 | |||||||||
Accounts payable, accrued expenses and other current liabilities | $ | 253 | $ | 317 | $ | 948 | $ | 2,341 | $ | 3,859 | ||||||||||
As of December 31, 2015 | ||||||||||||||||||||
Deferred income tax asset and other current assets | $ | 326 | $ | (217 | ) | $ | — | $ | 572 | $ | 681 | |||||||||
Accounts payable, accrued expenses and other current liabilities | $ | 250 | $ | 319 | $ | — | $ | 1,958 | $ | 2,527 |
(in thousands) | ||||||||||||||||||||
For the Three Months Ended September 30, 2016 | PI | RMW | ELI | AMPS | Total | |||||||||||||||
Operating revenue | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Loss from discontinued operations before income taxes | (36 | ) | (4 | ) | (948 | ) | (529 | ) | (1,517 | ) | ||||||||||
Income tax benefit | (14 | ) | (1 | ) | (363 | ) | (203 | ) | (581 | ) | ||||||||||
Loss from discontinued operations, net of tax | $ | (22 | ) | $ | (3 | ) | $ | (585 | ) | $ | (326 | ) | $ | (936 | ) | |||||
For the Three Months Ended September 30, 2015 | ||||||||||||||||||||
Operating revenue | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Loss from discontinued operations before income taxes | (145 | ) | (4 | ) | — | (40 | ) | (189 | ) | |||||||||||
Income tax benefit | (55 | ) | 57 | — | (74 | ) | (72 | ) | ||||||||||||
Loss from discontinued operations, net of tax | $ | (90 | ) | $ | (61 | ) | $ | — | $ | 34 | $ | (117 | ) |
(in thousands) | ||||||||||||||||||||
For the Nine Months Ended September 30, 2016 | PI | RMW | ELI | AMPS | Total | |||||||||||||||
Operating revenue | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Loss from discontinued operations before income taxes | (37 | ) | (7 | ) | (948 | ) | (624 | ) | (1,616 | ) | ||||||||||
Income tax benefit | (14 | ) | (3 | ) | (362 | ) | (239 | ) | (618 | ) | ||||||||||
Loss from discontinued operations, net of tax | $ | (23 | ) | $ | (4 | ) | $ | (586 | ) | $ | (385 | ) | $ | (998 | ) | |||||
For the Nine Months Ended September 30, 2015 | ||||||||||||||||||||
Operating revenue | $ | — | $ | — | $ | — | $ | 2 | $ | 2 | ||||||||||
Loss from discontinued operations before income taxes | (522 | ) | (17 | ) | — | (182 | ) | (721 | ) | |||||||||||
Income tax benefit | (155 | ) | (4 | ) | — | (117 | ) | (276 | ) | |||||||||||
Loss from discontinued operations, net of tax | $ | (367 | ) | $ | (13 | ) | $ | — | $ | (65 | ) | $ | (445 | ) |
(in thousands) | ||||||||||||||||||||||||
For the Three Months Ended September 30, 2016 | Operating Revenues | Depreciation and Amortization | Operating Income/(Loss) | Equity in Earnings/(Losses) of Affiliates, Net of Tax | Net Income/(Loss) From Continuing Operations | Capital Expenditures | ||||||||||||||||||
PI | $ | 280,620 | $ | 33,280 | $ | 28,018 | $ | 872 | $ | 28,325 | $ | 12,517 | ||||||||||||
RMW | 245,764 | 6,304 | 76,749 | — | 76,749 | 2,658 | ||||||||||||||||||
Corporate | 2 | 4,914 | (19,943 | ) | (265 | ) | (69,072 | ) | 1,408 | |||||||||||||||
Eliminations | (2,490 | ) | — | — | — | — | — | |||||||||||||||||
Consolidated (excluding discontinued operations) | $ | 523,896 | $ | 44,498 | $ | 84,824 | $ | 607 | $ | 36,002 | $ | 16,583 | ||||||||||||
For the Three Months Ended September 30, 2015 | ||||||||||||||||||||||||
PI | $ | 156,944 | $ | 23,052 | $ | 19,552 | $ | 5,763 | $ | 25,213 | $ | 10,303 | ||||||||||||
RMW | 232,050 | 9,525 | 64,104 | — | 64,100 | 3,355 | ||||||||||||||||||
Corporate | — | 3,863 | (17,736 | ) | (2,266 | ) | (60,671 | ) | 3,854 | |||||||||||||||
Eliminations | (2,555 | ) | — | — | — | — | — | |||||||||||||||||
Consolidated (excluding discontinued operations) | $ | 386,439 | $ | 36,440 | $ | 65,920 | $ | 3,497 | $ | 28,642 | $ | 17,512 | ||||||||||||
For the Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||
PI | $ | 798,741 | $ | 93,580 | $ | 78,518 | $ | 1,424 | $ | 78,122 | $ | 38,476 | ||||||||||||
RMW | 687,023 | 20,635 | 195,993 | — | 195,991 | 7,786 | ||||||||||||||||||
Corporate | 5 | 13,218 | (56,862 | ) | (829 | ) | (170,148 | ) | 16,106 | |||||||||||||||
Eliminations | (8,125 | ) | — | — | — | — | — | |||||||||||||||||
Consolidated (excluding discontinued operations) | $ | 1,477,644 | $ | 127,433 | $ | 217,649 | $ | 595 | $ | 103,965 | $ | 62,368 | ||||||||||||
For the Nine Months Ended September 30, 2015 | ||||||||||||||||||||||||
PI | $ | 471,442 | $ | 71,609 | $ | 56,229 | $ | 19,589 | $ | 75,450 | $ | 35,541 | ||||||||||||
RMW | 673,672 | 25,769 | 179,996 | — | 179,967 | 10,187 | ||||||||||||||||||
Corporate | 37 | 12,311 | (60,332 | ) | (7,658 | ) | (164,011 | ) | 11,987 | |||||||||||||||
Eliminations | (7,927 | ) | — | — | — | — | — | |||||||||||||||||
Consolidated (excluding discontinued operations) | $ | 1,137,224 | $ | 109,689 | $ | 175,893 | $ | 11,931 | $ | 91,406 | $ | 57,715 |
(in thousands) | As of | As of | ||||||
Assets | September 30, 2016 | December 31, 2015 | ||||||
PI | $ | 2,504,317 | $ | 2,058,412 | ||||
RMW | 1,339,912 | 1,316,785 | ||||||
Corporate | 5,595,976 | 5,318,990 | ||||||
Eliminations | (5,429,311 | ) | (5,021,152 | ) | ||||
Consolidated (excluding assets of discontinued operations) | $ | 4,010,894 | $ | 3,673,035 |
• | limitations on access to or increase in prices for data from external sources, including government and public record sources; |
• | changes in applicable government legislation, regulations and the level of regulatory scrutiny affecting our clients or us, including with respect to consumer financial services and the use of public records and consumer data; |
• | compromises in the security of our data, including cyber-based attacks, the transmission of confidential information or systems interruptions; |
• | difficult conditions in the mortgage and consumer lending industries and the economy generally; |
• | reliance on our top ten clients for a significant portion of our revenue and profit; |
• | our ability to protect proprietary technology rights; |
• | our ability to realize the anticipated benefits of certain acquisitions and the timing thereof; |
• | risks related to the outsourcing of services and international operations; |
• | our cost-containment and growth strategies and our ability to effectively and efficiently implement them; |
• | the level of our indebtedness, our ability to service our indebtedness and the restrictions in our various debt agreements; |
• | intense competition in the market against third parties and the in-house capabilities of our clients; |
• | our ability to attract and retain qualified management; |
• | impairments in our goodwill or other intangible assets; and |
• | the remaining tax sharing arrangements and other obligations associated with the spin-off of First American Financial Corporation ("FAFC"). |
(in thousands, except percentages) | 2016 | 2015 | $ Change | % Change | ||||||||||
PI | $ | 280,620 | $ | 156,944 | $ | 123,676 | 78.8 | % | ||||||
RMW | 245,764 | 232,050 | 13,714 | 5.9 | ||||||||||
Corporate and eliminations | (2,488 | ) | (2,555 | ) | 67 | (2.6 | ) | |||||||
Operating revenues | $ | 523,896 | $ | 386,439 | $ | 137,457 | 35.6 | % |
(in thousands, except percentages) | 2016 | 2015 | $ Change | % Change | |||||||||||
PI | $ | 28,018 | $ | 19,552 | $ | 8,466 | 43.3 | % | |||||||
RMW | 76,749 | 64,104 | 12,645 | 19.7 | |||||||||||
Corporate and eliminations | (19,943 | ) | (17,736 | ) | (2,207 | ) | 12.4 | ||||||||
Operating income | $ | 84,824 | $ | 65,920 | $ | 18,904 | 28.7 | % |
(in thousands, except percentages) | 2016 | 2015 | $ Change | % Change | ||||||||||
PI | $ | 798,741 | $ | 471,442 | $ | 327,299 | 69.4 | % | ||||||
RMW | 687,023 | 673,672 | 13,351 | 2.0 | ||||||||||
Corporate and eliminations | (8,120 | ) | (7,890 | ) | (230 | ) | 2.9 | |||||||
Operating revenues | $ | 1,477,644 | $ | 1,137,224 | $ | 340,420 | 29.9 | % |
(in thousands, except percentages) | 2016 | 2015 | $ Change | % Change | |||||||||||
PI | $ | 78,518 | $ | 56,229 | $ | 22,289 | 39.6 | % | |||||||
RMW | 195,993 | 179,996 | 15,997 | 8.9 | |||||||||||
Corporate and eliminations | (56,862 | ) | (60,332 | ) | 3,470 | (5.8 | ) | ||||||||
Operating income | $ | 217,649 | $ | 175,893 | $ | 41,756 | 23.7 | % |
(in thousands) | Remaining 2016 | 2017 - 2018 | 2019 - 2020 | Thereafter | Total | ||||||||||||||
Operating leases | $ | 8,216 | $ | 43,055 | $ | 36,652 | $ | 82,144 | $ | 170,067 | |||||||||
Long-term debt | 17,694 | 277,265 | 1,278,950 | 59,645 | 1,633,554 | ||||||||||||||
Interest payments related to debt (1) | 12,606 | 76,109 | 47,578 | 32,648 | 168,941 | ||||||||||||||
Service agreement (2) | 9,149 | — | — | — | 9,149 | ||||||||||||||
Total (3) | $ | 134,487 | $ | 315,508 | $ | 805,720 | $ | 559,613 | $ | 1,815,328 | |||||||||
(1) | Estimated interest payments are calculated assuming current interest rates over minimum maturity periods specified in debt agreements. |
(2) | Net minimum commitment with Cognizant. |
(3) | Excludes a net liability of $12.9 million related to uncertain tax positions including associated interest and penalties, and deferred compensation of $34.0 million due to uncertainty of payment period. |
1. | We depend on our ability to access data from external sources to maintain and grow our businesses. If we are unable to access needed data from these sources or if the prices charged for these services increase, the quality, pricing and availability of our products and services may be adversely affected, which could have a material adverse impact on our business, financial condition and results of operations. |
2. | Our clients and we are subject to various governmental regulations, and a failure to comply with government regulations or changes in these regulations could result in penalties, restrict or limit our or our clients' operations or make it more burdensome to conduct such operations, any of which could have a material adverse effect on our revenues, earnings and cash flows. |
3. | Regulatory developments with respect to use of consumer data and public records could have a material adverse effect on our business, financial condition and results of operations. |
4. | If we are unable to protect our information systems against data corruption, cyber-based attacks or network security breaches, or if we are unable to provide adequate security in the electronic transmission of sensitive data, it could have a material adverse effect on our business, financial condition and results of operations. |
5. | We rely on our top ten clients for a significant portion of our revenue and profit, which makes us susceptible to the same macro-economic and regulatory factors that our clients face. If these clients are negatively impacted by current economic or regulatory conditions or otherwise experience financial hardship or stress, or if the terms of our relationships with these clients change, our business, financial condition and results of operations could be adversely affected. |
6. | Systems interruptions may impair the delivery of our products and services, causing potential client and revenue loss. |
7. | Because our revenue from clients in the mortgage, consumer lending and real estate industries is affected by the strength of the economy and the housing market generally, including the volume of real estate transactions, a negative change in any of these conditions could materially adversely affect our business and results of operations. |
8. | Our acquisition and integration of businesses by us may involve increased expenses, and may not produce the desired financial or operating results contemplated at the time of the transaction. |
9. | Our reliance on outsourcing arrangements subjects us to risk and may disrupt or adversely affect our operations. In addition, we may not realize the full benefit of our outsourcing arrangements, which may result in increased costs, or may adversely affect our service levels for our clients. |
10. | Our international service providers and our own international operations subject us to additional risks, which could have an adverse effect on our results of operations and may impair our ability to operate effectively. |
11. | We rely upon proprietary technology and information rights, and if we are unable to protect our rights, our business, financial condition and results of operations could be harmed. |
12. | If our products or services are found to infringe on the proprietary rights of others, we may be required to change our business practices and may also become subject to significant costs and monetary penalties. |
• | be expensive and time-consuming to defend; |
• | cause us to cease making, licensing or using applications that incorporate the challenged intellectual property; |
• | require us to redesign our applications, if feasible; |
• | divert management's attention and resources; and |
• | require us to enter into royalty or licensing agreements in order to obtain the right to use necessary technologies. |
13. | Our level of indebtedness could adversely affect our financial condition and prevent us from complying with our covenants and obligations under our outstanding debt instruments. Further, the instruments governing our indebtedness subject us to various restrictions that could limit our operating flexibility. |
• | create, incur or assume additional debt; |
• | create, incur or assume certain liens; |
• | redeem and/or prepay certain subordinated debt we might issue in the future; |
• | pay dividends on our stock or repurchase stock; |
• | make certain investments and acquisitions, including joint ventures; |
• | enter into or permit to exist contractual limits on the ability of our subsidiaries to pay dividends to us; |
• | enter into new lines of business; |
• | engage in consolidations, mergers and acquisitions; |
• | engage in specified sales of assets; and |
• | enter into transactions with affiliates. |
16. | We may not be able to attract and retain qualified management or develop current management to assist in or lead company growth, which could have an adverse effect on our ability to maintain or expand our product and service offerings. |
17. | We have substantial investments in recorded goodwill as a result of prior acquisitions and an impairment of these investments would require a write-down that would reduce our net income. |
19. | We share responsibility with First American Financial Corporation ("FAFC") for certain income tax liabilities for tax periods prior to and including the date of the Separation. |
20. | If certain transactions, including internal transactions, undertaken in anticipation of the Separation are determined to be taxable for U.S. federal income tax purposes, we, our stockholders that are subject to U.S. federal income tax and FAFC will incur significant U.S. federal income tax liabilities. |
21. | In connection with the Separation, we entered into a number of agreements with FAFC setting forth rights and obligations of the parties post-Separation. In addition, certain provisions of these agreements provide protection to FAFC in the event of a change of control of us, which could reduce the likelihood of a potential change of control that our stockholders may consider favorable. |
Issuer Purchases of Equity Securities | |||||||||||||
(a) | (b) | ||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs | |||||||||
July 1 to July 31, 2016 | 200,000 | $ | 40.25 | 200,000 | $ | 274,113,915 | |||||||
August 1 to August 31, 2016 | 1,498,183 | $ | 39.80 | 1,498,183 | $ | 214,486,232 | |||||||
September 1 to September 30, 2016 | 400,605 | $ | 40.32 | 400,605 | $ | 198,329,224 | |||||||
Total | 2,098,788 | $ | 39.94 | 2,098,788 | |||||||||
CoreLogic, Inc. | ||
(Registrant) | ||
By: /s/ Anand Nallathambi | ||
Anand Nallathambi | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
By: /s/ James L. Balas | ||
James L. Balas | ||
Chief Financial Officer | ||
(Principal Financial & Accounting Officer) | ||
Date: | October 26, 2016 |
Exhibit Number | Description | |
2.1 | Purchase and Sale Agreement by and among CoreLogic Acquisition Co. I, LLC, CoreLogic Acquisition Co. II, LLC, CoreLogic Acquisition Co. III, LLC, Property Data Holdings, Ltd., DataQuick Lending Solutions, Inc., Decision Insight Information Group S.à r.l., and solely with respect to, and as specified in, Sections 2.5, 2.7, 2.10(f), 5.7, 5.18, 5.21, 8.2(b), 8.7(b), and 9.15 of the Purchase and Sale Agreement, CoreLogic Solutions, LLC, and solely with respect to, and as specified in, Sections 5.4 and 5.7 of the Purchase and Sale Agreement, Property Data Holdings, L.P. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K as filed with the SEC on July 5, 2013)^+ | |
2.2 | Agreement and Plan of Merger, dated December 17, 2015, by and among CoreLogic Solutions, LLC, CoreLogic Acquisition Co., Inc., FNC Holding Company, Inc. and, solely in his capacity as Shareholder Representative, Dennis S. Tosh, Jr. (incorporated by reference to Exhibit 2.2 to the Company's Annual Report on Form 10-K as filed with the SEC on February 26, 2016)^+ | |
2.3 | First Amendment to Agreement and Plan of Merger, dated as of April 7, 2016, by and among CoreLogic Solutions, LLC, CoreLogic Acquisition Co., Inc., FNC Holding Company, Inc. and Dennis S. Tosh, Jr. (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K as filed with the SEC on April 8, 2016)^ | |
3.1 | Amended and Restated Certificate of Incorporation of CoreLogic, Inc., dated May 28, 2010 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K as filed with the SEC on June 1, 2010) | |
3.2 | Amended and Restated Bylaws of CoreLogic, Inc. (incorporated by reference to the Company’s Current Report on Form 8-K as filed with the SEC on March 5, 2014) | |
31.1 | Certification by Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 ü | |
31.2 | Certification by Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 ü | |
32.1 | Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 ü | |
32.2 | Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 ü | |
101 | Extensible Business Reporting Language (XBRL)ü | |
ü | Included in this filing. | |
^ | Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company hereby agrees to furnish supplementally copies of any of the omitted schedules and exhibits upon request by the Securities and Exchange Commission. | |
+ | This agreement contains representations and warranties by us or our subsidiaries. These representations and warranties have been made solely for the benefit of the other parties to the agreement and (i) have been qualified by disclosures made to such other parties, (ii) were made only as of the date of such agreement or such other date(s) as may be specified in such agreement and are subject to more recent developments, which may not be fully reflected in our public disclosures, (iii) may reflect the allocation of risk among the parties to such agreement and (iv) may apply materiality standards different from what may be viewed as material to investors. Accordingly, these representations and warranties may not describe the actual state of affairs at the date hereof and should not be relied upon. |
1. | I have reviewed this quarterly report on Form 10-Q of CoreLogic, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: /s/ Anand Nallathambi |
Anand Nallathambi |
President and Chief Executive Officer |
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of CoreLogic, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: /s/ James L. Balas |
James L. Balas |
Chief Financial Officer |
(Principal Financial & Accounting Officer) |
By: /s/ Anand Nallathambi | ||
Anand Nallathambi | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
Date: | October 26, 2016 |
By: /s/ James L. Balas | ||
James L. Balas | ||
Chief Financial Officer | ||
(Principal Financial & Accounting Officer) | ||
Date: | October 26, 2016 |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Oct. 20, 2016 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | CORELOGIC, INC. | |
Entity Central Index Key | 0000036047 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 86,366,935 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Current assets: | ||
Allowance for doubtful accounts | $ 8,011 | $ 6,212 |
Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 180,000,000 | 180,000,000 |
Common stock, shares issued (in shares) | 86,362,000 | 88,228,000 |
Common stock, shares outstanding (in shares) | 86,362,000 | 88,228,000 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) Statement - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 35,066 | $ 28,525 | $ 102,967 | $ 90,961 |
Other comprehensive income/(loss) | ||||
Market value adjustments to marketable securities, net of tax | (463) | (733) | (550) | 216 |
Market value adjustments on interest rate swap, net of tax | 365 | (2,043) | (2,673) | (3,110) |
Foreign currency translation adjustments | 5,922 | (23,934) | 11,232 | (45,080) |
Supplemental benefit plans adjustments, net of tax | (107) | (98) | (320) | (293) |
Total other comprehensive income/(loss) | 5,717 | (26,808) | 7,689 | (48,267) |
Comprehensive income | 40,783 | 1,717 | 110,656 | 42,694 |
Less: Comprehensive income attributable to the noncontrolling interests | 0 | 357 | 0 | 823 |
Comprehensive income attributable to CoreLogic | $ 40,783 | $ 1,360 | $ 110,656 | $ 41,871 |
Basis of Condensed Consolidated Financial Statements |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Condensed Consolidated Financial Statements | Basis of Condensed Consolidated Financial Statements CoreLogic, Inc., together with its subsidiaries (collectively "we", "us" or "our"), is a leading global property information, analytics and data-enabled solutions provider operating in North America, Western Europe and Asia Pacific. Our combined data from public, contributory and proprietary sources provides detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets we serve include real estate and mortgage finance, insurance, capital markets and the public sector. We deliver value to clients through unique data, analytics, work flow technology, advisory and managed solutions. Clients rely on us to help identify and manage growth opportunities, improve performance and mitigate risk. Our condensed consolidated financial information included in this report has been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. Actual amounts may differ from these estimated amounts. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The 2015 year-end condensed consolidated balance sheet was derived from the Company's audited financial statements for the year ended December 31, 2015. Interim financial information does not require the inclusion of all the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2015. The accompanying unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of only normal recurring items which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for the full year or for any future periods. Client Concentration We generate the majority of our revenues from clients with operations in the U.S. residential real estate, mortgage origination and mortgage servicing markets. Approximately 41.2% and 30.3% of our operating revenues for the three months ended September 30, 2016 and 2015, respectively, and approximately 41.6% and 32.7% of our operating revenues for the nine months ended September 30, 2016 and 2015, respectively, were generated from our top ten clients, who consist of the largest U.S. mortgage originators and servicers. Two of our clients accounted for approximately 14.6% and 11.3% of our operating revenues for the three months ended September 30, 2016, and approximately 14.6% and 11.5% of our operating revenues for the nine months ended September 30, 2016. No client accounted for 10.0% or more of our operating revenues for the three and nine months ended September 30, 2015. Out-of-Period Adjustment During the first quarter of 2015, we identified an error which overstated our interest expense by $5.2 million ($3.1 million, net of tax), reflected within continuing operations, for the year ended December 31, 2014. We recorded an out-of-period adjustment to correct the error in the quarter ended March 31, 2015, which increased basic and diluted net income per share by $0.03. We assessed the materiality of this error and concluded the error was not material to the results of operations or financial condition for the prior annual or interim periods. Comprehensive Income Comprehensive income includes all changes in equity except those resulting from investments by owners and distributions to owners. Specifically, foreign currency translation adjustments, amounts related to supplemental benefit plans, unrealized gains and losses on interest rate swap transactions and unrealized gains and losses on investment are recorded in other comprehensive income/(loss). The following table shows the components of accumulated other comprehensive loss, net of taxes as of September 30, 2016 and December 31, 2015:
Marketable Securities Debt securities are carried at fair value and consist primarily of investments in obligations of various corporations and mortgage-backed securities. Equity securities are carried at fair value and consist primarily of investments in marketable common and preferred stock. We classify our publicly traded debt and equity securities as available-for-sale and carry them at fair value with unrealized gains or losses classified as a component of accumulated other comprehensive loss. As of September 30, 2016 and December 31, 2015, our marketable securities consist primarily of investments in preferred stock of $21.8 million and $22.7 million, respectively. There were no gains or losses recognized on sales of marketable securities for the three and nine months ended September 30, 2016 and 2015. Mandatorily Redeemable Noncontrolling Interest Mandatorily redeemable noncontrolling interests for which there is a contractual requirement to purchase the interest are included as a liability of NZD$27.8 million, or $19.0 million, in our accompanying condensed consolidated balance sheet as of December 31, 2015. In January 2016, we acquired the remaining 40.0% interest in New Zealand-based Property IQ Ltd. ("PIQ") and settled the mandatorily redeemable noncontrolling interest. As a result, there was no mandatorily redeemable noncontrolling interest balance as of September 30, 2016. See Note 13 - Acquisitions for further discussion. Tax Escrow Disbursement Arrangements We administer tax escrow disbursements as a service to our clients in connection with our property tax processing solutions. These deposits are maintained in segregated accounts for the benefit of our clients. Tax escrow deposits totaled $1.3 billion as of September 30, 2016 and $340.3 million as of December 31, 2015. Because these deposits are held on behalf of our clients, they are not our funds and, therefore, are not included in the accompanying condensed consolidated balance sheets. These deposits generally remain in the accounts for a period of two to five business days. We earn interest income or earnings credits from these deposits and bear the cost of bank-related fees. Under our contracts with our clients, if we make a payment in error or fail to pay a taxing authority when a payment is due, we could be held liable to our clients for all or part of the financial loss they suffer as a result of our act or omission. We maintained claim reserves relating to incorrect disposition of assets of $20.0 million and $21.2 million as of September 30, 2016 and December 31, 2015, respectively, which is reflected in our accompanying condensed consolidated balance sheets as a component of other liabilities. Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on eight specific cash flow classification issues that were either unclear or where no specific guidance was provided. The specific issues include i) debt prepayment or debt extinguishment costs; ii) settlement of zero-coupon debt instruments; iii) contingent consideration payments made after a business combination; iv) proceeds from the settlement of insurance claims; v) proceeds from the settlement of company-owned life insurance; vi) distributions received from equity method investees; vii) beneficial interests in securitization transactions; and, viii) separately identifiable cash flows and application of the predominance principle. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Earlier adoption is permitted. We have elected early adoption and the guidance did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued guidance for accounting of credit losses affecting the impairment model for most financial assets and certain other instruments. Entities will be required to use a new forward-looking current expected credit loss model for trade and other receivables, held-to-maturity debt securities, loans and other instruments, which will generally lead to an earlier recognition of loss allowances. Entities will recognize losses on available-for-sale debt securities as allowances rather than a reduction in amortized cost of the security while the measurement process of this loss does not change. Disclosure requirements are expanded regarding an entity’s assumptions, models and methods of estimations of the allowance. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Earlier adoption is permitted but we do not anticipate electing early adoption. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In March 2016, the FASB issued guidance to simplify some provisions in stock compensation accounting. The accounting for income taxes requires all excess tax benefits and tax deficiencies to be recognized through income tax expense. The statement of cash flows presentation of excess tax benefits should be classified with other income tax cash flows as an operating activity. An entity may also make an entity-wide election to either continue estimating the number of awards that are expected to vest or account for forfeitures as they occur. The requirements to qualify for equity classification permits tax withholding up to the maximum statutory tax rates in the applicable jurisdictions. Lastly, payments of cash by an employer for tax-withholding purposes, when directly withholding shares, are classified as a financing activity on the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Earlier adoption is permitted but we do not anticipate electing early adoption. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In March 2016, the FASB issued guidance on equity method accounting related to joint venture investments. The standard eliminates the requirement to retroactively adopt the equity method of accounting as a result of an increase in the level of ownership or degree of influence related to an investment. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Earlier adoption is permitted but we do not anticipate electing early adoption. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In March 2016, the FASB issued guidance on derivatives and hedging. The standard clarifies the four-step decision sequence required for assessing whether contingent put and call options that can speed up the payment for a debt instrument’s principal are clearly and closely related to the debt to which they are attached. The standard also clarifies that provided all other hedge accounting criteria continue to be met, a change in the counterparty to a derivative instrument does not in itself disqualify designation of the hedge. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Earlier adoption is permitted but we do not anticipate electing early adoption. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2016, the FASB issued guidance on lease accounting. The standard requires all leases in excess of 12-months to be recognized on the balance sheet as lease assets and lease liabilities. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not changed significantly from prior GAAP. For operating leases, a lessee is required to i) recognize a right-of-use asset and lease liability, initially measured at the present value of the lease payment, ii) recognize a single lease cost over the lease term generally on a straight-line basis, and iii) classify all cash payments within operating activities on the cash flow statement. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Earlier adoption is permitted but we do not anticipate electing early adoption. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. In January 2016, the FASB issued guidance on accounting for equity investments and financial liabilities. The standard does not apply to equity method investments or investments in consolidated subsidiaries. The update provides that equity investments with readily determinable values be measured at fair value and changes in the fair value flow through net income. These changes historically have run through other comprehensive income. Equity investments without readily determinable fair values have the option to be measured at fair value or at cost adjusted for changes in observable prices minus impairment. Changes in either method are also recognized in net income. The standard requires a qualitative assessment of impairment indicators at each reporting period. For financial liabilities, entities that elect the fair value option must recognize the change in fair value attributable to instrument-specific credit risk in other comprehensive income rather than net income. Lastly, regarding deferred tax assets, the need for a valuation allowance on a deferred tax asset will need to be assessed related to available-for-sale debt securities. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Earlier adoption is permitted but we do not anticipate electing early adoption. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In November 2015, the FASB issued guidance which requires all deferred tax assets and liabilities, as well as any related valuation allowance, to be classified as non-current on the balance sheet. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and earlier adoption is permitted. As of March 31, 2016, we elected early adoption on a prospective basis and, as of September 30, 2016, we presented $2.2 million of deferred income tax assets, long term and $109.7 million of deferred income tax liabilities, long term in the accompanying condensed consolidated balance sheet. |
Investments in Affiliates, Net |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Affiliates, Net | Investment in Affiliates, Net Investments in affiliates are accounted for under the equity method of accounting when 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. One of our subsidiaries previously owned 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 contributed 80.2% and 83.5% of our total equity in earnings of affiliates, net of tax, for the three and nine months ended September 30, 2015, respectively. We acquired the remaining interest in RELS in December 2015. See Note 13 - Acquisitions for further discussion. The following summarizes the financial information for this investment (assuming 100% ownership interest):
We recorded equity in earnings of affiliates, net of tax of $0.6 million and $3.5 million for the three months ended September 30, 2016 and 2015, respectively, and equity in earnings of affiliates, net of tax of $0.6 million and $11.9 million for the nine months ended September 30, 2016 and 2015, respectively. For the three months ended September 30, 2016 and 2015, we recorded $2.5 million and $4.8 million, respectively, of operating revenues and $2.9 million and $3.2 million, respectively, of operating expenses related to our investment in affiliates. In addition, for the nine months ended September 30, 2016 and 2015, we recorded $7.7 million and $14.2 million, respectively, of operating revenues and $8.4 million and $9.7 million, respectively, of operating expenses related to our investment in affiliates. |
Property and Equipment, Net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net as of September 30, 2016 and December 31, 2015 consists of the following:
Depreciation expense for property and equipment was approximately $21.1 million and $18.8 million for the three months ended September 30, 2016 and 2015, respectively, and $61.7 million and $56.0 million for the nine months ended September 30, 2016 and 2015, respectively. |
Goodwill, Net |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, Net | Goodwill, Net A reconciliation of the changes in the carrying amount of goodwill and accumulated impairment losses, by operating segment and reporting unit, for the nine months ended September 30, 2016, is as follows:
In connection with the acquisition of FNC, Inc. ("FNC"), we recorded $218.3 million of goodwill within our Property Intelligence ("PI") reporting unit for the nine months ended September 30, 2016. Further, we recorded $1.2 million of goodwill, within our PI reporting unit, related to an acquisition that was not significant. See Note 13 - Acquisitions for additional information. |
Other Intangible Assets, Net |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Intangible Assets, Net | Other Intangible Assets, Net Other intangible assets, net consist of the following:
Amortization expense for other intangible assets, net was $13.9 million and $9.4 million for the three months ended September 30, 2016 and 2015, respectively, and $38.8 million and $28.9 million for the nine months ended September 30, 2016 and 2015, respectively. Estimated amortization expense for other intangible assets, net is as follows:
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Long-Term Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Our long-term debt consists of the following:
As of September 30, 2016 and December 31, 2015, we have recorded $2.4 million and $3.6 million of accrued interest expense on our debt-related instruments. Senior Notes In May 2011, we issued $400.0 million aggregate principal amount of 7.25% senior notes due 2021 (the "Notes"). In July 2016, we completed the redemption of all outstanding balances under the Notes, which included a premium on debt extinguishment payment in the amount of $14.2 million for the three and nine months ended September 30, 2016. Credit Agreement In July 2016, we amended and restated our senior secured credit facility (the "Credit Agreement") with Bank of America, N.A., as administrative agent, and other financial institutions. The Credit Agreement provides for a $1.3 billion term loan facility (the "Term Facility") and a $550.0 million revolving credit facility (the "Revolving Facility"). The Term Facility matures and the Revolving Facility expires in April 2020. The Revolving Facility includes a $100.0 million multicurrency revolving sub-facility and a $50.0 million letter of credit sub-facility. The Credit Agreement also provides for the ability to request that the lenders increase the Term Facility by up to $225.0 million in the aggregate; however, the lenders are not obligated to do so. The loans under the Credit Agreement bear interest, at our election, at (i) the Alternate Base Rate (as defined in the Credit Agreement) plus the Applicable Rate (as defined in the Credit Agreement) or (ii) the London interbank offering rate for Eurocurrency borrowings, adjusted for statutory reserves, plus the Applicable Rate. The initial Applicable Rate for Alternate Base Rate borrowings is 0.75% and for Adjusted Eurocurrency Rate (as defined in the Credit Agreement) borrowings is 1.75%. Starting with the full fiscal quarter after the closing date, the Applicable Rate will vary depending on our leverage ratio. The minimum Applicable Rate for Alternate Base Rate borrowings will be 0.25% and the maximum will be 1.00%. The minimum Applicable Rate for Adjusted Eurocurrency Rate borrowings will be 1.25% and the maximum will be 2.00%. The Credit Agreement also requires us to pay commitment fees for the unused portion of the Revolving Facility, which will be a minimum of 0.25% and a maximum of 0.40%, depending on our leverage ratio. The Credit Agreement provides that loans under the Term Facility must be repaid in quarterly installments, commencing in September 2016 and continuing on each three-month anniversary thereafter in an amount equal to $17.2 million for the first four quarterly payments, $34.4 million for the next four quarterly payments and $51.6 million for each quarterly payment thereafter through March 2020. The outstanding balance of the Term Facility will be due in April 2020. The Credit Agreement contains financial maintenance covenants, including a (i) maximum total leverage ratio not to exceed 4.50 to 1.00 (stepped down to 4.25 to 1.00 starting with the fiscal quarter ending June 2017, with a further step down to 3.75 to 1.00 starting with the fiscal quarter ending June 2018 and stepped down to 3.50 to 1.00 starting with the fiscal quarter ending June 2019) and (ii) a minimum interest coverage ratio of not less than 3.00 to 1.00. See Note 13 - Acquisitions for further discussion. At September 30, 2016, we had borrowing capacity under the Revolving Facility of $295.0 million and we were in compliance with all of our covenants under the Credit Agreement. Debt Issuance Costs In connection with the amendment and restatement of the Credit Agreement, we incurred approximately $6.3 million of debt issuance costs of which $0.3 million were expensed in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2016. We capitalized the remaining $6.0 million of debt issuance costs within long-term debt, net in the accompanying condensed consolidated balance sheets, and will amortize these costs over the term of the Credit Agreement. We had unamortized costs of $14.0 million related to previously recorded debt issuance costs, which we will amortize over the term of the Credit Agreement. In connection with the redemption of the Notes in July 2016, we wrote-off $10.2 million of unamortized debt issuance costs during the three and nine months ended September 30, 2016. For the nine months ended September 30, 2015, we recorded $6.5 million of debt issuance costs of which $0.4 million were expensed in the accompanying condensed consolidated statements of operations and we capitalized the remaining $6.1 million of debt issuance costs within long-term debt, net in the accompanying condensed consolidated balance sheets. Further, we wrote-off $1.6 million of unamortized debt issuance costs during the nine months ended September 30, 2015. 7.55% Senior Debentures In April 1998, we issued $100.0 million in aggregate principal amount of 7.55% senior debentures due 2028. In April 2010, in anticipation of the spin-off of our financial services businesses into a new, publicly-traded, New York Stock Exchange-listed company called First American Financial Corporation ("FAFC") in June 2010 ("Separation"), we commenced a cash tender offer for these debentures and also solicited consent from the holders thereof to expressly affirm that the Separation would not conflict with the terms of the debentures. See Note 12 - Litigation and Regulatory Contingencies for further discussion on the Separation. In April 2010, we announced that valid consents were tendered representing over 50.0% of the outstanding debentures. Accordingly, we received the requisite approvals from debenture holders and amended the related indentures. The indentures governing these debentures, as amended, contain limited restrictions on the Company. Interest Rate Swaps We have entered into amortizing interest rate swaps ("Swaps") in order to convert a portion of our interest rate exposure on the Term Facility floating rate borrowings from variable to fixed. In August 2016, we entered into Swaps which became effective in September 2016 and terminate in April 2020. The Swaps entered in August 2016 are for an initial notional balance of $500.0 million, with a fixed interest rate of 1.03%, and amortize quarterly by $25.0 million through December 2018, with a notional step up of $100.0 million in March 2019, continued quarterly amortization of $25.0 million through April 2020, and a remaining notional amount of $275.0 million. In May 2014, we entered into Swaps which became effective in December 2014 and terminate in March 2019. The Swaps entered in May 2014 are for an initial notional balance of $500.0 million, with a fixed interest rate of 1.57%, and amortize quarterly by $12.5 million through December 31, 2017 and $25.0 million through December 31, 2018, with a remaining notional amount of $250.0 million. We have designated the Swaps as cash flow hedges. The estimated fair value of these cash flow hedges resulted in a liability of $8.7 million and $4.4 million as of September 30, 2016 and December 31, 2015, respectively, which is included in the accompanying condensed consolidated balance sheets as a component of other liabilities. Unrealized losses of $0.4 million (net of $0.2 million in deferred taxes) and unrealized losses of $2.0 million (net of $1.3 million in deferred taxes) for the three months ended September 30, 2016 and 2015, respectively, and unrealized losses of $2.7 million (net of $1.7 million in deferred taxes) and $3.1 million (net of $1.9 million in deferred taxes) for the nine months ended September 30, 2016 and 2015, respectively, were recognized in other comprehensive (loss)/income related to the Swaps. |
Income Taxes |
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Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate for income taxes as a percentage of income from continuing operations before equity in earnings of affiliates and income taxes was 31.0% and 46.4% for the three months ended September 30, 2016 and 2015, respectively, and 33.5% and 37.4% for the nine months ended September 30, 2016 and 2015, respectively. For the three months ended September 30, 2016, when compared to 2015, the decrease in the effective income tax rate was primarily attributable to current year favorable rate reductions related to foreign tax rate differentials, permanent enactment of the federal research credit subsequent to September 30, 2015 and a reduction in the contingent consideration recorded in connection with the acquisition of FNC. The prior year rate was unfavorably impacted by unbenefited foreign losses in tax jurisdictions with tax rates lower than the U.S. and a decrease in foreign tax credits. For the nine months ended September 30, 2016, when compared to 2015, the decrease in the effective income tax rate was due to current year favorable rate reductions related to foreign tax rate differentials, permanent enactment of the federal research credit subsequent to September 30, 2015 and a reduction in the contingent consideration recorded in connection with the acquisition of FNC. The current year favorable rate reductions were partially offset by prior year non-recurring favorable discrete items related to release of a foreign valuation allowance and a reduction in foreign uncertain tax benefits due to statute of limitations expiration. Income taxes included in equity in earnings of affiliates were $0.5 million and $2.3 million for the three months ended September 30, 2016 and 2015, respectively, and $0.9 million and $7.8 million for the nine months ended September 30, 2016 and 2015, respectively. For the purpose of segment reporting, these amounts are included in corporate and therefore not reflected in our reportable segments. We are currently under examination for the years 2005 to 2011 by the U.S. federal and various state taxing authorities. It is reasonably possible the amount of unrecognized tax benefit with respect to certain unrecognized tax positions could significantly increase or decrease within the next twelve months. We estimate the unrecognized tax benefit could decrease by up to $21.5 million within the next twelve months. The estimated change is primarily related to IRS audits, subject to the FAFC indemnification, and may have minimal impact to net income. See Note 12 - Litigation and Regulatory Contingencies for further discussion on FAFC. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following is a reconciliation of net income per share:
The dilutive effect of stock-based compensation awards has been calculated using the treasury-stock method. For both the three months ended September 30, 2016 and 2015, there were no anti-dilutive common shares. For the nine months ended September 30, 2016 and 2015, an aggregate of less than 0.1 million and 0.3 million of stock options, respectively, were excluded from the weighted-average diluted common shares outstanding due to their anti-dilutive effect. |
Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The market approach is applied for recurring fair value measurements and endeavors to utilize the best available information. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair value balances are classified based on the observability of those inputs. A fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). Level 2 measurements utilize observable inputs in markets other than active markets. In estimating the fair value of the financial instruments presented, we used the following methods and assumptions: Cash and cash equivalents For cash and cash equivalents, we believe that the carrying value is a reasonable estimate of fair value due to the short-term nature of the instruments. Restricted cash Restricted cash is comprised of certificates of deposit that are pledged for various letters of credit. We deem the carrying value to be a reasonable estimate of fair value due to the nature of these instruments. Marketable securities Marketable securities are classified as available-for-sale securities and are valued using quoted prices in active markets. Contingent consideration The fair value of the contingent consideration was estimated using the Monte Carlo simulation model, which relies on significant assumption and estimates including discount rates and future market conditions, among others. Long-term debt The fair value of long-term debt was estimated based on the current rates available to us for similar debt of the same remaining maturities and consideration of our default and credit risk. Interest rate swap agreements The fair value of the interest rate swap agreements was estimated based on market-value quotes received from the counterparties to the agreements. The fair values of our financial instruments as of September 30, 2016 are presented in the following table:
The fair values of our financial instruments as of December 31, 2015 are presented in the following table:
There were no transfers between Level 1, Level 2 or Level 3 securities during the three and nine months ended September 30, 2016. In connection with the contingent consideration, we recorded gains of $4.0 million and $3.1 million in our condensed consolidated statement of operations for the three and nine months ended September 30, 2016, respectively. |
Stock-Based Compensation |
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Stock-Based Compensation | Stock-Based Compensation We currently issue equity awards under the Amended and Restated CoreLogic, Inc. 2011 Performance Incentive Plan, which was initially approved by our stockholders at our Annual Meeting held on May 19, 2011 with an amendment and restatement approved by our stockholders at our Annual Meeting held on July 29, 2014 (the “Plan”). The Plan includes the ability to grant restricted stock unit ("RSUs"), performance-based stock units ("PBRSUs") and stock options. The Plan provides for up to 21,909,000 shares of the Company's common stock to be available for award grants. Prior to the approval of the Plan, we issued share-based awards under the CoreLogic, Inc. 2006 Incentive Plan. We primarily utilize RSUs and PBRSUs as our share-based compensation instruments for employees and directors. The fair value of any share-based compensation instrument grant is based on the market value of our shares on the date of grant and is recognized as compensation expense over its vesting period. Restricted Stock Units For the nine months ended September 30, 2016 and 2015, we awarded 967,826 and 943,486 RSUs, respectively, with an estimated grant-date fair value of $33.7 million and $33.3 million, respectively. The majority of the RSU awards will vest ratably over three years from their grant date. RSU activity for the nine months ended September 30, 2016 is as follows:
As of September 30, 2016, there was $36.9 million of total unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period of 2.1 years. The fair value of RSUs is based on the market value of our common stock on the date of grant. Performance-Based Restricted Stock Units For the nine months ended September 30, 2016 and 2015, we awarded 285,475 and 222,788 PBRSUs, respectively, with an estimated grant-date fair value of $10.1 million and $7.6 million, respectively. These awards are subject to service-based, performance-based and market-based vesting conditions. For the majority of the PBRSUs awarded during the nine months ended September 30, 2016, the performance period is from January 1, 2016 to December 31, 2018 and the performance metric is adjusted earnings per share and market-based conditions. Subject to satisfaction of the performance criteria, the majority of the 2016 awards will vest on December 31, 2018. For the nine months ended September 30, 2016, the awards included 111,598 PBRSUs issued in conjunction with acquisitions. The performance metric is total revenue with the performance period through December 31, 2018. The performance period for the PBRSUs awarded during the nine months ended September 30, 2015 is from January 1, 2015 to December 31, 2017 and the performance metric is adjusted earnings per share and market-based conditions. Subject to satisfaction of the performance criteria, the majority of the 2015 awards will vest on December 31, 2017. The fair values of the 2016 and 2015 awards were estimated using Monte-Carlo simulation with the following weighted-average assumptions:
PBRSU activity for the nine months ended September 30, 2016 is as follows:
As of September 30, 2016, there was $20.1 million of total unrecognized compensation cost related to unvested PBRSUs that is expected to be recognized over a weighted-average period of 1.9 years. The fair value of PBRSUs is based on the market value of our common stock on the date of grant. Stock Options Prior to 2015, we issued stock options as incentive compensation for certain employees. Option activity for the nine months ended September 30, 2016 is as follows:
As of September 30, 2016, there was $0.3 million of total unrecognized compensation cost related to unvested stock options that is expected to be recognized over a weighted-average period of 6 months. The intrinsic value of options exercised was $4.4 million and $8.8 million for the nine months ended September 30, 2016 and 2015, respectively. This intrinsic value represents the difference between the fair market value of our common stock on the date of exercise and the exercise price of each option. Employee Stock Purchase Plan The employee stock purchase plan allows eligible employees to purchase our common stock at 85.0% of the lesser of the closing price on the first day or the last day of each quarter. Our employee stock purchase plan was approved by our stockholders at our 2012 annual meeting of stockholders and the first offering period commenced in October 2012. We recognized an expense for the amount equal to the estimated fair value of the discount during each offering period. The following table sets forth the stock-based compensation expense recognized for the three and nine months ended September 30, 2016 and 2015.
The above includes $0.7 million and $1.3 million of stock-based compensation expense within cost of services in the accompanying condensed consolidated statements of operations for the three months ended September 30, 2016 and 2015, respectively, and $3.6 million and $2.7 million for the nine months ended September 30, 2016 and 2015, respectively. |
Commitments |
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Commitments | Commitments Lease Commitments We lease certain office facilities, automobiles and equipment under operating leases, which, for the most part, are renewable. The majority of these leases also provide that the Company will pay insurance and taxes. Future minimum rental payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of September 30, 2016 are as follows:
Total rental expenses for all operating leases and month-to-month rentals were $5.8 million and $4.6 million for the three months ended September 30, 2016 and September 30, 2015, respectively, and $15.1 million and $13.7 million for the nine months ended September 30, 2016 and September 30, 2015, respectively. Operational Commitments In August 2011, an affiliate of Cognizant Technology Solutions Corporation ("Cognizant") acquired CoreLogic India Global Services Private Limited, our India-based captive operations ("CoreLogic India"). The purchase price for CoreLogic India was $50.0 million in cash before working capital adjustments. As part of the transaction, we entered into a Master Professional Services Agreement ("Services Agreement") and supplement ("Supplement") with Cognizant under which Cognizant will provide a range of business process and information technology services to us. The Supplement has an initial term of seven years and we have the unilateral right to extend the term for up to three one-year periods. During the first five years of the agreement, we are subject to a net total minimum commitment of approximately $303.5 million, plus applicable inflation adjustments. In connection with the sale, we recorded $27.1 million of deferred gain on sale which was recognized to income over five years. As of September 30, 2016, the remaining minimum commitment totaled $9.1 million. |
Litigation and Regulatory Contingencies |
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Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Regulatory Contingencies | Litigation and Regulatory Contingencies We have been named in various lawsuits and we may from time to time be subject to audit or investigation by governmental agencies. Currently, governmental agencies are auditing or investigating certain of our operations. With respect to matters where we have determined that a loss is both probable and reasonably estimable, we have recorded a liability representing our best estimate of the financial exposure based on known facts. While the ultimate disposition of each such audit, investigation or lawsuit is not yet determinable, we do not believe that the ultimate resolution of these matters, either individually or in the aggregate, will have a material adverse effect on our financial condition, results of operations or cash flows. In addition, we do not believe there is a reasonable possibility that a material loss exceeding amounts already accrued may be incurred. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. The actual outcome of such matters could differ materially from management’s estimates. We record expenses for legal fees as incurred. Separation Following the Separation, we are responsible for a portion of FAFC's contingent and other corporate liabilities. In the Separation and Distribution Agreement we entered into in connection with the Separation (the "Separation and Distribution Agreement"), we agreed with FAFC to share equally in the cost of resolution of a small number of corporate-level lawsuits, including certain consolidated securities litigation matters from which we have since been dropped. There were no liabilities incurred in connection with the consolidated securities matters. Responsibility to manage each case has been assigned to either FAFC or us, with the managing party required to update the other party regularly and consult with the other party prior to certain important decisions, such as settlement. The managing party will also have primary responsibility for determining the ultimate total liability, if any, related to the applicable case. We will record our share of any such liability when the responsible party determines a reserve is necessary. At September 30, 2016, no reserves were considered necessary. In addition, the Separation and Distribution Agreement provides for cross-indemnities principally designed to place financial responsibility for the obligations and liabilities of our predecessor, The First American Corporation's ("FAC") financial services business, with FAFC and financial responsibility for the obligations and liabilities of FAC's information solutions business with us. Specifically, each party will, and will cause its subsidiaries and affiliates to, indemnify, defend and hold harmless the other party, its respective affiliates and subsidiaries and each of its respective officers, directors, employees and agents for any losses arising out of or otherwise in connection with the liabilities each such party assumed or retained pursuant to the Separation and Distribution Agreement; and any breach by such party of the Separation and Distribution Agreement. |
Acquisitions |
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Business Combinations [Abstract] | |
Acquisitions | Acquisitions In April 2016, we completed the acquisition of FNC for up to $475.0 million, with $400.0 million in cash paid at closing, subject to certain closing adjustments, and up to $75.0 million to be paid in cash in 2018, contingent upon the achievement of certain revenue targets in fiscal 2017. We fair-valued the contingent payment using the Monte Carlo simulation model and initially recorded $8.0 million as contingent consideration. The contingent payment is fair-valued quarterly and changes are recorded within our condensed consolidated statement of operations. See Note 9 - Fair Value of Financial Instruments for further discussion. FNC is a leading provider of real estate collateral information technology and solutions that automates property appraisal ordering, tracking, documentation and review for lender compliance with government regulations and is included as a component of our PI reporting segment. The acquisition continues to expand our property valuation capabilities. The purchase price was allocated to the assets acquired and liabilities assumed using a variety of valuation techniques including discounted cash flow analysis, which included significant unobservable inputs. The purchase price allocation is subject to change based on our final determination of fair value in connection with intangible assets and working capital matters. We preliminarily recorded a deferred tax liability of $90.3 million, property and equipment of $79.8 million with an estimated average life of 12 years, customer lists of $141.8 million with an estimated average life of 16 years, trade names of $15.9 million with an estimated average life of 19 years, non-compete agreements of $18.8 million with an estimated average life of 5 years, other intangibles of $2.9 million with an estimated average life of 10 years and goodwill of $218.3 million. For the three months ended September 30, 2016, goodwill was increased by approximately $6.8 million from the initial amount recorded in the second quarter of 2016, as a results of a change in purchase price allocation for certain working capital and tax adjustments. This business combination did not have a material impact on our condensed consolidated statements of operations. In January 2016, we completed the acquisition of the remaining 40% mandatorily redeemable noncontrolling interest in PIQ for NZD $27.8 million, or $19.0 million, and settled the mandatorily redeemable noncontrolling interest. PIQ is included as a component of our PI reporting segment. In December 2015, we completed the acquisition of the remaining interest in RELS for approximately $65.0 million 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 gain on investment and other, net in the accompanying condensed consolidated statements of operations. RELS is included as a component of our PI reporting segment. The acquisition of RELS expands our real estate asset valuation and appraisal solutions in connection with loan originations. The purchase price was allocated to the assets acquired and liabilities assumed using a variety of valuation techniques including a discounted cash flow analysis, which included significant unobservable inputs. The purchase price allocation is subject to change based on our final determination of fair value in connection with intangible assets and working capital matters. We preliminarily recorded property and equipment of $27.0 million with an estimated average life of 10 years, customer lists of $48.4 million with an estimated average life of 10 years, other intangibles of $5.0 million with an estimated average life of 10 years and goodwill of $23.1 million, of which $11.5 million is deductible for tax purposes. This business combination did not have a material impact on our condensed consolidated statements of operations. In October 2015, we completed the acquisition of Cordell Information Pty Limited ("Cordell") for AUD$70.0 million, or $49.1 million, subject to working capital adjustments, which is included as a component of our PI reporting segment. The acquisition of Cordell further expands our property information capabilities in Australia. The purchase price was allocated to the assets acquired and liabilities assumed using a variety of valuation techniques including discounted cash flow analysis, which included significant unobservable inputs. The purchase price allocation is subject to change based on our final determination of fair value in connection with intangible assets and working capital matters. We preliminarily recorded property and equipment of $14.3 million with an estimated average life of 10 years, customer lists of $5.5 million with an estimated average life of 8 years, trade names of $0.6 million with an estimated average life of 4 years and goodwill of $31.9 million, which is fully deductible for tax purposes. This business combination did not have a material impact on our condensed consolidated statements of operations. In September 2015, we completed the acquisition of LandSafe Appraisal Services, Inc. for $122.0 million, subject to working capital adjustments, which is included as a component of our PI reporting segment. The acquisition builds on our longstanding strategic relationship with a key client and continues to expand our property valuation capabilities. The purchase price was allocated to the assets acquired and liabilities assumed using a variety of valuation techniques including discounted cash flow analysis, which included significant unobservable inputs. We recorded customer lists of $53.4 million with an estimated average life of 10 years, other intangibles of $4.3 million with an estimated average life of 10 years and goodwill of $64.6 million, which is fully deductible for tax purposes. This business combination did not have a material impact on our condensed consolidated statements of operations. We incurred $1.4 million and $0.6 million of acquisition-related costs within selling, general and administrative expenses on our consolidated statements of operations for the three months ended September 30, 2016 and 2015, respectively, and $7.5 million and $1.0 million for the nine months ended September 30, 2016 and 2015, respectively. |
Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations In September 2014, we completed the sale of our collateral solutions and field services businesses, which were included in the former reporting segment Asset Management and Processing Solutions ("AMPS"), for total consideration of $29.1 million, subject to working capital adjustments. In September 2012, we completed the wind down of our consumer services business and our then-owned appraisal management company business, which were included in our PI and Risk Management and Workflow ("RMW") segments, respectively. In September 2011, we closed our marketing services business, which was included in our PI segment. In December 2010, we completed the sale of our Employer and Litigation Services businesses ("ELI"). Each of these businesses is reflected in our accompanying condensed consolidated financial statements as discontinued operations. In connection with previous divestitures, we retain the prospect of contingent liabilities for indemnification obligations or breaches of representations or warranties. With respect to one such divestiture, a jury recently returned an unfavorable verdict against a discontinued operating unit that, if upheld on appeal, could result in the reasonable possibility of indemnification exposure up to $16.0 million. We do not consider this outcome to be probable and intend to vigorously assert our contractual and other rights, including to pursue an appeal to eliminate or substantially reduce any potential post-divestiture contingency. Any actual liability that comes to fruition would be reflected in our results from discontinued operations. Summarized below are certain assets and liabilities classified as discontinued operations as of September 30, 2016 and December 31, 2015:
Summarized below are the components of our loss from discontinued operations for the three and nine months ended September 30, 2016 and 2015:
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Segment Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We have organized our reportable segments into two segments: PI and RMW. Property Intelligence. Our PI segment owns or licenses real property information, mortgage information and consumer information, which includes loan information, property sales and characteristic information, property risk and replacement cost, natural hazard data, geospatial data, parcel maps and mortgage-backed securities information. We have also developed proprietary technology and software platforms to access, automate or track our data and assist our clients with compliance regulations. We deliver this information directly to our clients in a standard format over the web, through customizable software platforms or in bulk data form. Our products and services include data licensing and analytics, data-enabled advisory services, platform solutions and valuation 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, Multiple Listing Service companies, property and casualty insurance companies, title insurance companies, government agencies and government-sponsored enterprises. The operating results of our PI segment included intercompany revenues of $1.5 million and $1.3 million for the three months ended September 30, 2016 and 2015, and $4.2 million and $4.3 million for the nine months ended September 30, 2016 and 2015, respectively. The segment also included intercompany expenses of $1.0 million and $1.2 million for the three months ended September 30, 2016 and 2015, and $3.9 million and $3.6 million for the nine months ended September 30, 2016 and 2015, respectively. Risk Management and Workflow. Our RMW segment owns or licenses real property information, mortgage information and consumer information, which includes loan information, property sales and characteristic information, natural hazard data, parcel maps, employment verification, criminal records and eviction records. We have also developed proprietary technology and software platforms to access, automate or track our data and assist our clients with compliance regulations. Our products and services include credit and screening solutions, property tax processing, flood data services and technology solutions 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 casualty insurance companies. The operating results of our RMW segment included intercompany revenues of $1.0 million and $1.2 million for the three months ended September 30, 2016 and 2015, and $3.9 million and $3.6 million for the nine months ended September 30, 2016 and 2015, respectively. The segment also included intercompany expenses of $1.5 million and $1.3 million for the three months ended September 30, 2016 and 2015, and $4.2 million and $4.3 million for the nine months ended September 30, 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 financial information by reportable segment is as follows:
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Basis of Condensed Consolidated Financial Statements (Policies) |
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Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Client Concentration | Client Concentration We generate the majority of our revenues from clients with operations in the U.S. residential real estate, mortgage origination and mortgage servicing markets. |
Comprehensive Income | Comprehensive Income Comprehensive income includes all changes in equity except those resulting from investments by owners and distributions to owners. Specifically, foreign currency translation adjustments, amounts related to supplemental benefit plans, unrealized gains and losses on interest rate swap transactions and unrealized gains and losses on investment are recorded in other comprehensive income/(loss). |
Marketable Securities | Marketable Securities Debt securities are carried at fair value and consist primarily of investments in obligations of various corporations and mortgage-backed securities. Equity securities are carried at fair value and consist primarily of investments in marketable common and preferred stock. We classify our publicly traded debt and equity securities as available-for-sale and carry them at fair value with unrealized gains or losses classified as a component of accumulated other comprehensive loss. |
Mandatorily Redeemable Noncontrolling Interest | Mandatorily Redeemable Noncontrolling Interest Mandatorily redeemable noncontrolling interests for which there is a contractual requirement to purchase the interest are included as a liability of NZD$27.8 million, or $19.0 million, in our accompanying condensed consolidated balance sheet as of December 31, 2015. In January 2016, we acquired the remaining 40.0% interest in New Zealand-based Property IQ Ltd. ("PIQ") and settled the mandatorily redeemable noncontrolling interest. As a result, there was no mandatorily redeemable noncontrolling interest balance as of September 30, 2016. See Note 13 - Acquisitions for further discussion. |
Tax Escrow Disbursement Arrangements | Tax Escrow Disbursement Arrangements We administer tax escrow disbursements as a service to our clients in connection with our property tax processing solutions. These deposits are maintained in segregated accounts for the benefit of our clients. Tax escrow deposits totaled $1.3 billion as of September 30, 2016 and $340.3 million as of December 31, 2015. Because these deposits are held on behalf of our clients, they are not our funds and, therefore, are not included in the accompanying condensed consolidated balance sheets. These deposits generally remain in the accounts for a period of two to five business days. We earn interest income or earnings credits from these deposits and bear the cost of bank-related fees. Under our contracts with our clients, if we make a payment in error or fail to pay a taxing authority when a payment is due, we could be held liable to our clients for all or part of the financial loss they suffer as a result of our act or omission. We maintained claim reserves relating to incorrect disposition of assets of $20.0 million and $21.2 million as of September 30, 2016 and December 31, 2015, respectively, which is reflected in our accompanying condensed consolidated balance sheets as a component of other liabilities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on eight specific cash flow classification issues that were either unclear or where no specific guidance was provided. The specific issues include i) debt prepayment or debt extinguishment costs; ii) settlement of zero-coupon debt instruments; iii) contingent consideration payments made after a business combination; iv) proceeds from the settlement of insurance claims; v) proceeds from the settlement of company-owned life insurance; vi) distributions received from equity method investees; vii) beneficial interests in securitization transactions; and, viii) separately identifiable cash flows and application of the predominance principle. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Earlier adoption is permitted. We have elected early adoption and the guidance did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued guidance for accounting of credit losses affecting the impairment model for most financial assets and certain other instruments. Entities will be required to use a new forward-looking current expected credit loss model for trade and other receivables, held-to-maturity debt securities, loans and other instruments, which will generally lead to an earlier recognition of loss allowances. Entities will recognize losses on available-for-sale debt securities as allowances rather than a reduction in amortized cost of the security while the measurement process of this loss does not change. Disclosure requirements are expanded regarding an entity’s assumptions, models and methods of estimations of the allowance. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Earlier adoption is permitted but we do not anticipate electing early adoption. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In March 2016, the FASB issued guidance to simplify some provisions in stock compensation accounting. The accounting for income taxes requires all excess tax benefits and tax deficiencies to be recognized through income tax expense. The statement of cash flows presentation of excess tax benefits should be classified with other income tax cash flows as an operating activity. An entity may also make an entity-wide election to either continue estimating the number of awards that are expected to vest or account for forfeitures as they occur. The requirements to qualify for equity classification permits tax withholding up to the maximum statutory tax rates in the applicable jurisdictions. Lastly, payments of cash by an employer for tax-withholding purposes, when directly withholding shares, are classified as a financing activity on the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Earlier adoption is permitted but we do not anticipate electing early adoption. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In March 2016, the FASB issued guidance on equity method accounting related to joint venture investments. The standard eliminates the requirement to retroactively adopt the equity method of accounting as a result of an increase in the level of ownership or degree of influence related to an investment. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Earlier adoption is permitted but we do not anticipate electing early adoption. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In March 2016, the FASB issued guidance on derivatives and hedging. The standard clarifies the four-step decision sequence required for assessing whether contingent put and call options that can speed up the payment for a debt instrument’s principal are clearly and closely related to the debt to which they are attached. The standard also clarifies that provided all other hedge accounting criteria continue to be met, a change in the counterparty to a derivative instrument does not in itself disqualify designation of the hedge. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Earlier adoption is permitted but we do not anticipate electing early adoption. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2016, the FASB issued guidance on lease accounting. The standard requires all leases in excess of 12-months to be recognized on the balance sheet as lease assets and lease liabilities. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not changed significantly from prior GAAP. For operating leases, a lessee is required to i) recognize a right-of-use asset and lease liability, initially measured at the present value of the lease payment, ii) recognize a single lease cost over the lease term generally on a straight-line basis, and iii) classify all cash payments within operating activities on the cash flow statement. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Earlier adoption is permitted but we do not anticipate electing early adoption. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. In January 2016, the FASB issued guidance on accounting for equity investments and financial liabilities. The standard does not apply to equity method investments or investments in consolidated subsidiaries. The update provides that equity investments with readily determinable values be measured at fair value and changes in the fair value flow through net income. These changes historically have run through other comprehensive income. Equity investments without readily determinable fair values have the option to be measured at fair value or at cost adjusted for changes in observable prices minus impairment. Changes in either method are also recognized in net income. The standard requires a qualitative assessment of impairment indicators at each reporting period. For financial liabilities, entities that elect the fair value option must recognize the change in fair value attributable to instrument-specific credit risk in other comprehensive income rather than net income. Lastly, regarding deferred tax assets, the need for a valuation allowance on a deferred tax asset will need to be assessed related to available-for-sale debt securities. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Earlier adoption is permitted but we do not anticipate electing early adoption. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In November 2015, the FASB issued guidance which requires all deferred tax assets and liabilities, as well as any related valuation allowance, to be classified as non-current on the balance sheet. The guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and earlier adoption is permitted. |
Basis of Condensed Consolidated Financial Statements (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The following table shows the components of accumulated other comprehensive loss, net of taxes as of September 30, 2016 and December 31, 2015:
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Investments in Affiliates, Net (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments | The following summarizes the financial information for this investment (assuming 100% ownership interest):
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Property and Equipment, Net (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment, Net | Property and equipment, net as of September 30, 2016 and December 31, 2015 consists of the following:
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Goodwill, Net (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | A reconciliation of the changes in the carrying amount of goodwill and accumulated impairment losses, by operating segment and reporting unit, for the nine months ended September 30, 2016, is as follows:
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Other Intangible Assets, Net (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | Other intangible assets, net consist of the following:
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Schedule of Expected Amortization Expense | Estimated amortization expense for other intangible assets, net is as follows:
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Long-Term Debt, Net of Current (Tables) |
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Our long-term debt consists of the following:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share Reconciliation | The following is a reconciliation of net income per share:
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Fair Value of Financial Instruments (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The fair values of our financial instruments as of September 30, 2016 are presented in the following table:
The fair values of our financial instruments as of December 31, 2015 are presented in the following table:
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Stock-Based Compensation (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | RSU activity for the nine months ended September 30, 2016 is as follows:
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Schedule of Share-based Payment Award, Performance-Based Units, Valuation Assumptions | The fair values of the 2016 and 2015 awards were estimated using Monte-Carlo simulation with the following weighted-average assumptions:
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Schedule of Other Share-based Compensation, Activity | PBRSU activity for the nine months ended September 30, 2016 is as follows:
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Schedule of Share-based Compensation, Stock Options, Activity | Option activity for the nine months ended September 30, 2016 is as follows:
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Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table sets forth the stock-based compensation expense recognized for the three and nine months ended September 30, 2016 and 2015.
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Commitments (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum rental payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of September 30, 2016 are as follows:
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Discontinued Operations (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | Summarized below are certain assets and liabilities classified as discontinued operations as of September 30, 2016 and December 31, 2015:
Summarized below are the components of our loss from discontinued operations for the three and nine months ended September 30, 2016 and 2015:
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Segment Information (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Selected financial information by reportable segment is as follows:
|
Basis of Condensed Consolidated Financial Statements (AOCI Table) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cumulative foreign currency translation | $ (103,195) | $ (114,427) |
Cumulative supplemental benefit plans | (3,860) | (3,540) |
Net unrecognized losses on interest rate swap | (5,372) | (2,699) |
Net unrealized gains on marketable securities | 0 | 550 |
Accumulated other comprehensive loss | $ (112,427) | $ (120,116) |
Investments in Affiliates, Net (Equity Method Investment Table) (Details) - RELS LLC [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2015 |
Sep. 30, 2015 |
|
Schedule of Equity Method Investments [Line Items] | ||
Total revenues | $ 62,503 | $ 190,707 |
Expenses and other | 53,442 | 158,509 |
Net income attributable to RELS LLC | 9,061 | 32,198 |
CoreLogic equity in earnings of affiliate | $ 4,540 | $ 16,131 |
Property and Equipment, Net (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 980,517 | $ 855,214 |
Less accumulated depreciation | (536,928) | (479,560) |
Property and equipment, net | 443,589 | 375,654 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,476 | 4,000 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,293 | 111 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 62,062 | 62,140 |
Capitalized software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 874,871 | 759,925 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 29,815 | $ 29,038 |
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 21.1 | $ 18.8 | $ 61.7 | $ 56.0 |
Goodwill, Net (Details) - USD ($) $ in Thousands |
1 Months Ended | 9 Months Ended | |
---|---|---|---|
Apr. 30, 2016 |
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Goodwill [Roll Forward] | |||
Goodwill | $ 1,889,072 | ||
Accumulated impairment losses | (7,525) | ||
Goodwill, net | $ 2,109,944 | 1,881,547 | |
Acquisitions | 219,427 | ||
Translation adjustments | 8,970 | ||
Goodwill, net | 2,109,944 | 1,881,547 | |
Property Intelligence [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill | 963,680 | ||
Accumulated impairment losses | (600) | ||
Goodwill, net | 1,191,477 | 963,080 | |
Acquisitions | 219,427 | ||
Translation adjustments | 8,970 | ||
Goodwill, net | 1,191,477 | 963,080 | |
Risk Management and Work Flow [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill | 925,392 | ||
Accumulated impairment losses | (6,925) | ||
Goodwill, net | 918,467 | 918,467 | |
Acquisitions | 0 | ||
Translation adjustments | 0 | ||
Goodwill, net | 918,467 | $ 918,467 | |
FNC, Inc. [Member] | Property Intelligence [Member] | |||
Goodwill [Roll Forward] | |||
Acquisitions | $ 218,300 | 218,300 | |
Insignificant acquisition [Member] | Property Intelligence [Member] | |||
Goodwill [Roll Forward] | |||
Acquisitions | $ 1,200 |
Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, gross | $ 790,439 | $ 790,439 | $ 607,791 | ||
Less accumulated amortization | (295,681) | (295,681) | (255,643) | ||
Total | 494,758 | 494,758 | 352,148 | ||
Amortization expense for finite-lived intangible assets | 13,900 | $ 9,400 | 38,800 | $ 28,900 | |
Client lists [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, gross | 640,612 | 640,612 | 496,192 | ||
Less accumulated amortization | (249,639) | (249,639) | (219,887) | ||
Total | 390,973 | 390,973 | 276,305 | ||
Non-compete agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, gross | 28,110 | 28,110 | 9,302 | ||
Less accumulated amortization | (10,045) | (10,045) | (7,983) | ||
Total | 18,065 | 18,065 | 1,319 | ||
Trade names and licenses [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, gross | 121,717 | 121,717 | 102,297 | ||
Less accumulated amortization | (35,997) | (35,997) | (27,773) | ||
Total | $ 85,720 | $ 85,720 | $ 74,524 |
Other Intangible Assets, Net (Finite Lived Intangible Asset Future Amortization Expense) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
Remainder of 2016 | $ 14,119 | |
2017 | 55,986 | |
2018 | 55,182 | |
2019 | 52,986 | |
2020 | 50,602 | |
Thereafter | 265,883 | |
Total | $ 494,758 | $ 352,148 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Effective Income Tax Rate [Abstract] | ||||
Effective income tax rate, continuing operations | 31.00% | 46.40% | 33.50% | 37.40% |
Income tax of equity in earnings of affiliates | $ 0.5 | $ 2.3 | $ 0.9 | $ 7.8 |
Unrecognized tax benefits, period decrease | $ 21.5 |
Earnings Per Share (Antidilutive Shares) (Details) - shares shares in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share | 0.1 | 0.3 |
Stock-Based Compensation (Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Number of Shares | ||
Outstanding, Beginning of Period (in units) | 1,537,000 | |
Granted (in units) | 967,826 | 943,486 |
Vested (in units) | (755,000) | |
Forfeited (in units) | (96,000) | |
Outstanding, End of Period (in units) | 1,654,000 | |
Weighted Average Grant Date Fair Value | ||
Unvested units outstanding, Beginning Balance (usd per unit) | $ 32.92 | |
Granted (usd per unit) | 34.78 | |
Vested (usd per unit) | 32.34 | |
Forfeited (usd per unit) | 34.39 | |
Unvested units outstanding, Ending Balance (usd per unit) | $ 34.18 |
Stock-Based Compensation (PBRSU Weighted Average Assumptions) (Details) - PBRSU [Member] |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected dividend yield | 0.00% | 0.00% | |||||
Risk-free interest rate | [1] | 0.99% | 0.93% | ||||
Expected volatility | [2] | 25.12% | 24.01% | ||||
Average total stockholder return | [2] | 1.48% | 8.37% | ||||
|
Stock-Based Compensation (PBRSU) (Details) - PBRSU [Member] - $ / shares |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Number of Shares | |||
Number of units unvested (in units) | 738,000 | 659,000 | |
Granted (in units) | 285,475 | 222,788 | |
Vested (in units) | 94,000 | ||
Forfeited (in units) | (112,000) | ||
Weighted Average Grant Date Fair Value | |||
Unvested units outstanding, Beginning Balance (usd per unit) | $ 29.15 | ||
Granted (usd per unit) | 35.39 | ||
Vested (usd per unit) | 26.49 | ||
Forfeited (usd per unit) | 22.37 | ||
Unvested units outstanding, Ending Balance (usd per unit) | $ 34.13 |
Stock-Based Compensation (Compensation Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 10,540 | $ 7,880 | $ 29,859 | $ 26,419 |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 6,209 | 5,699 | 19,757 | 18,532 |
PBRSU [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 3,766 | 1,433 | 8,312 | 5,485 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 213 | 443 | 813 | 1,480 |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 352 | $ 305 | $ 977 | $ 922 |
Commitments - Future Minimum Rental Payments on Operating Leases (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Remaining 2016 | $ 8,216 |
2017 | 21,983 |
2018 | 21,072 |
2019 | 19,790 |
2020 | 16,862 |
Thereafter | 82,144 |
Total future minimum rental payments for operating leases | $ 170,067 |
Litigation and Regulatory Contingencies (Details) |
Sep. 30, 2016
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency accrual | $ 0 |
Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Sep. 30, 2014 |
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Possible indemnification exposure, maximum | $ 16.0 | |
Field and Collateral [Domain] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total consideration received | $ 29.1 |
Segment Information (Narrative) (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
segment
|
Sep. 30, 2015
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 2 | |||
Operating Segments [Member] | Property Intelligence [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment reporting intercompany revenue | $ 1.5 | $ 1.3 | $ 4.2 | $ 4.3 |
Segment reporting intercompany expense | 1.0 | 1.2 | 3.9 | 3.6 |
Operating Segments [Member] | Risk Management and Work Flow [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment reporting intercompany revenue | 1.0 | 1.2 | 3.9 | 3.6 |
Segment reporting intercompany expense | $ 1.5 | $ 1.3 | $ 4.2 | $ 4.3 |
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