SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

x☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, ~~2018~~2019

o☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-13585

(Exact name of registrant as specified in its charter)



	Delaware	95-1068610
	(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)



40 Pacifica	Irvine	California	~~92618-7471~~92618
(~~Address of principal executive offices)~~Street Address)	(City)	(State)	(Zip Code)

~~(949)~~ (949) 214-1000

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class:	Trading symbol(s)	Name of exchange on which registered
Common Stock, $0.00001 par value	CLGX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x☒ No o☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Indicate by check mark whether the registrant: is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and ~~"emerging~~“emerging growth ~~company"~~company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer	x☒	Accelerated filer	o☐
Non-accelerated filer	o ☐	Smaller reporting company	o☐
		Emerging growth company	o☐

o ☐If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

On October ~~22, 2018~~21, 2019 there were ~~80,561,463~~79,518,536 shares of common stock outstanding.

~~CoreLogic,~~

CoreLogic, Inc.

Table of Contents



Part I:	Financial Information	1

Item 1.	Financial Statements (unaudited)

	A. Condensed Consolidated Balance Sheets as of September 30, ~~2018~~2019 and December 31, ~~2017~~2018	1

	B. Condensed Consolidated Statements of Operations for the three and nine months ended September 30, ~~2018~~2019 and ~~2017~~2018	2

	C. Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, ~~2018~~2019 and ~~2017~~2018	3

	D. Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, ~~2018~~2019 and ~~2017~~2018	4

	E. Condensed Consolidated Statement of Stockholders' Equity for the three and nine months ended September 30, 2019 and 2018	5

	F. Notes to Condensed Consolidated Financial Statements	67

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	2731

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3540

Item 4.	Controls and Procedures	3640

Part II:	Other Information	3641

Item 1.	Legal Proceedings	3641

Item 1A.	Risk Factors	3641

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36

~~Item 3.~~	~~Defaults upon Senior Securities~~	37

~~Item 4.~~	~~Mine Safety Disclosures~~	37

~~Item 5.~~	~~Other Information~~	3742

Item 6.	Exhibits	3743

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements.

~~CoreLogic,~~CoreLogic, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)


(in thousands, except par value)	September 30,			December 31,			September 30,			December 31,
Assets	2018			2017			2019			2018
Current assets:
Cash and cash equivalents	$	97,884		$	118,804		$	88,238		$	85,271
Accounts receivable (less allowance for doubtful accounts of $6,936 and $8,229 as of September 30, 2018 and December 31, 2017, respectively)	254,263			256,595
Accounts receivable (less allowance for doubtful accounts of $7,394 and $5,742 as of September 30, 2019 and December 31, 2018, respectively)							273,021			242,814
Prepaid expenses and other current assets	53,515			47,220			60,328			50,136
Income tax receivable	8,984			7,649			2,673			25,299
Total current assets	414,646			430,268			424,260			403,520
Property and equipment, net	453,431			447,659			446,057			456,497
Operating lease assets							65,302			—
Goodwill, net	2,312,297			2,250,599			2,392,972			2,391,954
Other intangible assets, net	475,037			475,613			391,994			468,405
Capitalized data and database costs, net	324,779			329,403			323,777			324,049
Investment in affiliates, net	42,090			38,989			18,575			22,429
Other assets	119,380			104,882			75,518			102,136
Total assets	$	4,141,660		$	4,077,413		$	4,138,455		$	4,168,990
Liabilities and Equity
Current liabilities:
Accounts payable and other accrued expenses	$	157,580		$	145,655		$	179,740		$	166,258
Accrued salaries and benefits	79,171			93,717			80,570			84,940
Contract liabilities, current	308,659			303,948			314,847			308,959
Current portion of long-term debt	27,068			70,046			68,247			26,935
Operating lease liabilities, current							16,839			—
Total current liabilities	572,478			613,366			660,243			587,092
Long-term debt, net of current	1,737,855			1,683,524			1,636,272			1,752,241
Contract liabilities, net of current	520,544			504,900			539,037			524,069
Deferred income tax liabilities	109,356			102,571			100,229			124,968
Operating lease liabilities, net of current							85,844			—
Other liabilities	171,311			165,176			183,969			180,122
Total liabilities	3,111,544			3,069,537			3,205,594			3,168,492

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; 80,562 and 80,885 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively	1			1
Common stock, $0.00001 par value; 180,000 shares authorized; 79,519 and 80,092 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively							1			1
Additional paid-in capital	173,963			224,455			124,872			160,870
Retained earnings	962,765			877,111			994,673			975,375
Accumulated other comprehensive loss	(106,613		)	(93,691		)	(186,685		)	(135,748		)
Total stockholders' equity	1,030,116			1,007,876			932,861			1,000,498
Total liabilities and equity	$	4,141,660		$	4,077,413		$	4,138,455		$	4,168,990

The accompanying notes are an integral part of these condensed consolidated financial statements.

~~CoreLogic,~~

CoreLogic, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)


	For the Three Months Ended						For the Nine Months Ended						For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
(in thousands, except per share amounts)	2018			2017			2018			2017			2019			2018			2019			2018
Operating revenues	$	451,768		$	483,131		$	1,385,069		$	1,396,960		$	458,957		$	451,768		$	1,336,203		$	1,385,069
Cost of services (excluding depreciation and amortization shown below)	230,419			244,186			709,154			745,314			228,186			230,419			674,457			709,154
Selling, general and administrative expenses	113,075			131,323			340,049			346,723			111,276			113,075			362,298			340,049
Depreciation and amortization	48,494			45,326			142,030			131,668			45,717			48,461			142,042			141,948
Impairment loss													78			33			47,912			82
Total operating expenses	391,988			420,835			1,191,233			1,223,705			385,257			391,988			1,226,709			1,191,233
Operating income	59,780			62,296			193,836			173,255			73,700			59,780			109,494			193,836
Interest expense:
Interest income	299			393			1,053			1,323			349			299			1,728			1,053
Interest expense	19,382			16,686			56,061			45,352			19,852			19,382			59,137			56,061
Total interest expense, net	(19,083		)	(16,293		)	(55,008		)	(44,029		)	(19,503		)	(19,083		)	(57,409		)	(55,008		)
Gain/(loss) on investments and other, net	2,835			(3,095		)	5,124			(6,513		)	224			2,835			(1,926		)	5,124
Income from continuing operations before equity in (losses)/earnings of affiliates and income taxes	43,532			42,908			143,952			122,713
Tax indemnification release													—			—			(13,394		)	—
Income from continuing operations before equity in earnings/(losses) of affiliates and income taxes													54,421			43,532			36,765			143,952
Provision for income taxes	20,836			11,851			37,432			36,759			14,481			20,836			508			37,432
Income from continuing operations before equity in (losses)/earnings of affiliates	22,696			31,057			106,520			85,954
Equity in (losses)/earnings of affiliates, net of tax	(161		)	(229		)	2,909			(1,232		)
Income from continuing operations before equity in earnings/(losses) of affiliates													39,940			22,696			36,257			106,520
Equity in earnings/(losses) of affiliates, net of tax													605			(161		)	497			2,909
Net income from continuing operations	22,535			30,828			109,429			84,722			40,545			22,535			36,754			109,429
(Loss)/income from discontinued operations, net of tax	(84		)	(74		)	(175		)	2,421
Gain from sale of discontinued operations, net of tax	—			—			—			310
Loss from discontinued operations, net of tax													(17,362		)	(84		)	(17,456		)	(175		)
Net income	$	22,451		$	30,754		$	109,254		$	87,453		$	23,183		$	22,451		$	19,298		$	109,254

Basic income per share:
Net income from continuing operations	$	0.28		$	0.37		$	1.35		$	1.01		$	0.51		$	0.28		$	0.46		$	1.35
(Loss)/income from discontinued operations, net of tax	—			—			—			0.03
Gain from sale of discontinued operations, net of tax	—			—			—			—
Loss from discontinued operations, net of tax													(0.22		)	—			(0.22		)	—
Net income	$	0.28		$	0.37		$	1.35		$	1.04		$	0.29		$	0.28		$	0.24		$	1.35
Diluted income per share:
Net income from continuing operations	$	0.27		$	0.36		$	1.33		$	0.99		$	0.50		$	0.27		$	0.45		$	1.33
(Loss)/income from discontinued operations, net of tax	—			—			—			0.03
Gain from sale of discontinued operations, net of tax	—			—			—			—
Loss from discontinued operations, net of tax													(0.21		)	—			(0.21		)	—
Net income	$	0.27		$	0.36		$	1.33		$	1.02		$	0.29		$	0.27		$	0.24		$	1.33
Weighted-average common shares outstanding:
Basic	80,680			83,362			81,073			84,114			79,761			80,680			80,138			81,073
Diluted	82,017			85,090			82,528			85,840			80,914			82,017			81,205			82,528

The accompanying notes are an integral part of these condensed consolidated financial statements.

~~CoreLogic,~~

CoreLogic, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	For the Three Months Ended						For the Nine Months Ended					For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,					September 30,						September 30,
(in thousands)	2018			2017			2018			2017		2019			2018			2019			2018
Net income	$	22,451		$	30,754		$	109,254		$	87,453	$	23,183		$	22,451		$	19,298		$	109,254
Other comprehensive (loss)/income
Other comprehensive loss
Adoption of new accounting standards	—			—			408			—		—			—			—			408
Market value adjustments on interest rate swaps, net of tax	2,532			41			10,770			1,621		(8,121		)	2,532			(41,415		)	10,770
Reclassification adjustment for gain on terminated interest rate swap included in net income												—			—			(67		)	—
Foreign currency translation adjustments	(6,129		)	6,078			(23,729		)	22,761		(13,529		)	(6,129		)	(9,007		)	(23,729		)
Supplemental benefit plans adjustments, net of tax	(124		)	(106		)	(371		)	1,519		(149		)	(124		)	(448		)	(371		)
Total other comprehensive (loss)/income	(3,721		)	6,013			(12,922		)	25,901
Comprehensive income	$	18,730		$	36,767		$	96,332		$	113,354
Total other comprehensive loss												(21,799		)	(3,721		)	(50,937		)	(12,922		)
Comprehensive income/(loss)												$	1,384		$	18,730		$	(31,639	)	$	96,332

The accompanying notes are an integral part of these condensed consolidated financial statements.

~~CoreLogic,~~

CoreLogic, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	For the Nine Months Ended						For the Nine Months Ended
	September 30,						September 30,
(in thousands)	2018			2017			2019			2018
Cash flows from operating activities:
Net income	$	109,254		$	87,453		$	19,298		$	109,254
Less: (Loss)/income from discontinued operations, net of tax	(175		)	2,421
Less: Gain from sale of discontinued operations, net of tax	—			310
Less: Loss from discontinued operations, net of tax							(17,456		)	(175		)
Net income from continuing operations	109,429			84,722			36,754			109,429
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	142,030			131,668			142,042			141,948
Amortization of debt issuance costs	4,103			4,263			3,836			4,103
Amortization of operating lease assets							11,675			—
Impairment loss							47,912			82
Provision for bad debt and claim losses	11,113			12,268			11,546			11,113
Share-based compensation	29,574			29,558			26,863			29,574
Equity in (earnings)/losses of affiliates, net of taxes	(2,909		)	1,232
Equity in earnings of affiliates, net of taxes							(497		)	(2,909		)
Gain on sale of property and equipment	(19		)	(227		)	(3		)	(19		)
Loss on early extinguishment of debt							1,453			—
Deferred income tax	10,279			(7,038		)	(10,642		)	10,279
(Gain)/loss on investment and other, net	(5,124		)	6,513
Loss/(gain) on investments and other, net							473			(5,124		)
Tax indemnification release							13,394			—
Change in operating assets and liabilities, net of acquisitions:
Accounts receivable	2,619			(5,655		)	(33,071		)	2,619
Prepaid expenses and other current assets	(7,617		)	2,414			(7,132		)	(7,617		)
Accounts payable and other accrued expenses	(22,037		)	(40,681		)	(18,023		)	(22,037		)
Contract liabilities	(18,406		)	26,037			19,629			(18,406		)
Income taxes	7,847			644			31,239			7,847
Dividends received from investments in affiliates	775			1,198			—			775
Other assets and other liabilities	(9,353		)	21,765			(29,208		)	(9,353		)
Net cash provided by operating activities - continuing operations	252,304			268,681			248,240			252,304
Net cash (used in)/provided by operating activities - discontinued operations	(4		)	3,660
Net cash used in operating activities - discontinued operations							(1,148		)	(4		)
Total cash provided by operating activities	$	252,300		$	272,341		$	247,092		$	252,300
Cash flows from investing activities:
Purchases of property and equipment	$	(41,020	)	$	(28,534	)	$	(63,196	)	$	(41,020	)
Purchases of capitalized data and other intangible assets	(25,013		)	(25,744		)	(29,443		)	(25,013		)
Cash paid for acquisitions, net of cash acquired	(140,977		)	(188,372		)	(13,280		)	(140,977		)
Cash received from sale of business-line	3,245			—
Purchases of investments							(658		)	—
Cash received from sale of business-lines							4,109			3,245
Proceeds from sale of property and equipment	198			316			3			198
Proceeds from investments	980			—			5,591			980
Net cash used in investing activities - continuing operations	(202,587		)	(242,334		)	(96,874		)	(202,587		)
Net cash provided by investing activities - discontinued operations	—			—			—			—
Total cash used in investing activities	$	(202,587	)	$	(242,334	)	$	(96,874	)	$	(202,587	)
Cash flows from financing activities:
Proceeds from long-term debt	$	120,095		$	1,995,000		$	1,770,000		$	120,095
Debt issuance costs	—			(14,294		)	(9,621		)	—
Repayment of long-term debt	(114,626		)	(1,796,661		)	(1,844,155		)	(114,626		)
Proceeds from issuance of shares in connection with share-based compensation	19,585			6,330			8,391			19,585
Payment of tax withholdings related to net share settlements	(12,623		)	(13,629		)	(9,645		)	(12,623		)
Shares repurchased and retired	(87,028		)	(132,460		)	(61,607		)	(87,028		)
Net cash (used in)/provided by financing activities - continuing operations	(74,597		)	44,286
Contingent consideration payments subsequent to acquisitions							(612		)	—
Net cash used in financing activities - continuing operations							(147,249		)	(74,597		)
Net cash provided by financing activities - discontinued operations	—			—			—			—
Total cash (used in)/provided by financing activities	$	(74,597	)	$	44,286
Total cash used in financing activities							$	(147,249	)	$	(74,597	)
Effect of exchange rate on cash, cash equivalents and restricted cash	2,039			(1,324		)	637			2,039
Net change in cash, cash equivalents and restricted cash	(22,845		)	72,969			3,606			(22,845		)
Cash, cash equivalents and restricted cash at beginning of period	132,154			89,974			98,250			132,154
Less: Change in cash, cash equivalents and restricted cash - discontinued operations	(4		)	3,660			(1,148		)	(4		)
Plus: Cash swept (to)/from discontinued operations	(4		)	3,660
Plus: Cash swept from discontinued operations							(1,148		)	(4		)
Cash, cash equivalents and restricted cash at end of period	$	109,309		$	162,943		$	101,856		$	109,309

Supplemental disclosures of cash flow information:
Cash paid for interest	$	50,108		$	37,283		$	53,202		$	50,108
Cash paid for income taxes	$	25,406		$	45,702		$	11,558		$	25,406
Cash refunds from income taxes	$	3,271		$	524		$	16,812		$	3,271
Non-cash investing activities:
Capital expenditures included in accounts payable and other accrued expenses	$	16,911		$	6,281		$	11,286		$	16,911

The accompanying notes are an integral part of these condensed consolidated financial statements.

~~CoreLogic,~~

CoreLogic, Inc.

Condensed Consolidated Statement of Stockholders' Equity (Quarter-to-Date)

(Unaudited)


																	Common Stock Shares			Common Stock Amount				Additional Paid-in Capital				Retained Earnings				Accumulated Other Comprehensive Loss				Total
(in thousands)	Common Stock Shares		Common Stock Amount		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive (Loss)/Income			Total
Balance as of December 31, 2017	80,885		$	1	$	224,455		$	877,111		$	(93,691	)	$	1,007,876
Adoption of new accounting standards	—		—		—			(23,600		)	408			(23,192		)
For the Three Months Ended September 30, 2019																			Common Stock Shares				Common Stock Amount				Additional Paid-in Capital				Retained Earnings				Accumulated Other Comprehensive Loss				Total
Balance as of June 30, 2019
Net income
Shares issued in connection with share-based compensation																						86			—				1,832				—				—				1,832
Payment of tax withholdings related to net share settlements																	—					—				(378		)		—				—				(378		)
Share-based compensation																	—			—				9,108				—				—				9,108
Shares repurchased and retired																	(700	)		—				(32,577		)		—				—				(32,577		)
Other comprehensive loss																	—			—				—				—				(21,799		)		(21,799		)
Balance as of September 30, 2019																	79,519			$	1			$	124,872			$	994,673			$	(186,685	)		$	932,861

For the Three Months Ended September 30, 2018
Balance as of June 30, 2018																	80,944			$	1			$	186,816			$	940,314			$	(102,892	)		$	1,024,239
Net income	—		—		—			109,254			—			109,254			—			—				—				22,451				—				22,451
Shares issued in connection with share-based compensation	1,428		—		19,585			—			—			19,585			97			—				2,019				—				—				2,019
Payment of tax withholdings related to net share settlements	—		—		(12,623		)	—			—			(12,623		)	—			—				(941		)		—				—				(941		)
Share-based compensation	—		—		29,574			—			—			29,574			—			—				9,775				—				—				9,775
Shares repurchased and retired	(1,751	)	—		(87,028		)	—			—			(87,028		)	(479	)		—				(23,706		)		—				—				(23,706		)
Other comprehensive loss	—		—		—			—			(13,330		)	(13,330		)	—			—				—				—				(3,721		)		(3,721		)
Balance as of September 30, 2018	80,562		$	1	$	173,963		$	962,765		$	(106,613	)	$	1,030,116		80,562			$	1			$	173,963			$	962,765			$	(106,613	)		$	1,030,116

The accompanying notes are an integral part of these condensed consolidated financial statements.

CoreLogic, Inc.

Condensed Consolidated Statement of Stockholders' Equity (Year-to-Date)

(Unaudited)



	Common Stock Shares		Common Stock Amount		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total
(in thousands)
For the Nine Months Ended September 30, 2019
Balance as of December 31, 2018	80,092		$	1	$	160,870		$	975,375		$	(135,748	)	$	1,000,498
Net income	—		—		—			19,298			—			19,298
Shares issued in connection with share-based compensation	827				8,391			—			—			8,391
Payment of tax withholdings related to net share settlements	—				(9,645		)	—			—			(9,645		)
Share-based compensation	—				26,863			—			—			26,863
Shares repurchased and retired	(1,400	)			(61,607		)	—			—			(61,607		)
Other comprehensive loss	—				—			—			(50,937		)	(50,937		)
Balance as of September 30, 2019	79,519		$	1	$	124,872		$	994,673		$	(186,685	)	$	932,861

For the Nine Months Ended September 30, 2018
Balance as of December 31, 2017	80,885		$	1	$	224,455		$	877,111		$	(93,691	)	$	1,007,876
Adoption of new accounting standards	—		—		—			(23,600		)	408			(23,192		)
Net income	—		—		—			109,254			—			109,254
Shares issued in connection with share-based compensation	1,428		—		19,585			—			—			19,585
Payment of tax withholdings related to net share settlements	—		—		(12,623		)	—			—			(12,623		)
Share-based compensation	—		—		29,574			—			—			29,574
Shares repurchased and retired	(1,751	)	—		(87,028		)	—			—			(87,028		)
Other comprehensive loss	—		—		—			—			(13,330		)	(13,330		)
Balance as of September 30, 2018	80,562		$	1	$	173,963		$	962,765		$	(106,613	)	$	1,030,116

The accompanying notes are an integral part of these condensed consolidated financial statements.

Note 1 – Basis of Condensed Consolidated Financial Statements

CoreLogic, Inc., together with its subsidiaries (collectively ~~"we"~~“the Company”, ~~"us"~~“we”, “us” or ~~"our"~~“our”), is a leading global property information, insight, 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, workflow 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 (“GAAP”) in the ~~U.S. (“GAAP”~~United States ("US") 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 ~~2017~~2018 year-end condensed consolidated balance sheet was derived from the ~~Company's~~Company’s audited financial statements for the year ended December 31, ~~2017~~2018. 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, ~~2017~~2018.

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 operating revenues from clients with operations in the ~~U.S.~~US residential real estate, mortgage origination and mortgage servicing markets. Approximately ~~32%~~31% and ~~37%~~32% of our operating revenues for the three months ended September 30, ~~2018~~2019 and ~~2017, respectively, and 32% and 39% for the nine months ended September 30,~~ 2018, ~~and 2017,~~ respectively, were generated from our top ten clients, who consist of the largest ~~U.S.~~US mortgage originators and servicers. None of our clients individually accounted for greater than 10% of our operating revenues for the three months ended September 30, ~~2018,~~2019 nor 2018. Approximately 30% and ~~one of our clients accounted for approximately 11% of our operating revenues for the three months ended September 30, 2017. None of our clients accounted for greater than 10%~~32% of our operating revenues for the nine months ended September 30, 2019 and 2018, ~~and two~~respectively, were generated from our top ten clients with none of our clients ~~accounted~~individually accounting for ~~approximately 12% and~~greater than 10% of our operating revenues ~~for the nine months ended September 30, 2017.~~during these periods.

Cash, Cash Equivalents and Restricted Cash

We deem the carrying value of cash, cash equivalents and restricted cash to be a reasonable estimate of fair value due to the nature of these instruments. Restricted cash is comprised of certificates of deposit that are pledged for various letters of credit/bank guarantees secured by us, escrow accounts due to acquisitions and divestitures as well as short-term investments within our deferred compensation plan trust. The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in the statement of cash flows:



(in thousands)	September 30, 2019		September 30, 2018
Cash and cash equivalents	$	88,238	$	97,884
Restricted cash included in other assets	11,616		10,355
Restricted cash included in prepaid expenses and other current assets	2,002		1,070
Total cash, cash equivalents and restricted cash	$	101,856	$	109,309

(in thousands) September 30, 2018 September 30, 2017
Cash and cash equivalents $ 97,884
$ 149,411
Restricted cash included in other assets 10,355
13,532
Restricted cash included in prepaid expenses and other current assets 1,070
—
Total cash, cash equivalents and restricted cash $ 109,309
$ 162,943

Operating Revenue Recognition

We derive our operating revenues primarily from ~~U.S.~~US mortgage lenders, servicers and insurance companies with good creditworthiness. Operating revenue arrangements are written and specify the products or services to be delivered, pricing, and payment terms. Operating revenue is recognized when the distinct good, or service, or performance obligation is delivered and

control has been transferred to the client. Generally, clients contract with us to provide products and services that are highly interrelated and not separately identifiable. Therefore, the entire contract is accounted for as one performance obligation. At times, some of our contracts have multiple performance obligations where we allocate the total price to each performance obligation based on the estimated relative standalone selling price using observable sales or the cost-plus-margin approach.

For products or services where delivery occurs at a point in time, we recognize operating revenue when the client obtains control of the products upon delivery.When delivery occurs over time, we generally recognize operating revenue ratably over the service period, once initial delivery has occurred. For certain of our products or services, clients may also pay upfront fees, which we defer and recognize as operating revenue over the longer of the contractual term or the expected client relationship period.

Licensing arrangements that provide our clients with the right to access or use our intellectual property are considered functional licenses for which we generally recognize operating revenue based on usage. For arrangements that provide a stand-ready obligation or substantive updates to the intellectual property which the client is contractually or practically required to use, we recognize operating revenue ratably over the contractual term.

Client payment terms are standard with no significant financing components or extended payment terms granted. In limited cases, we allow for client cancellations for which we estimate a reserve.

See further discussion in Note 68 - Operating Revenues.

Comprehensive ~~Income~~Loss

Comprehensive ~~income~~loss includes all changes in equity except those resulting from investments by shareholders and distributions to shareholders. 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~~investments are recorded in other comprehensive income/(loss)~~/income.~~. The following table shows the components of accumulated other comprehensive loss, net of taxes, as of September 30, ~~2018~~2019 and December 31, ~~2017~~:2018:



(in thousands)	2019			2018
Cumulative foreign currency translation	$	(138,413	)	$	(129,406	)
Cumulative supplemental benefit plans	(5,406		)	(4,958		)
Net unrecognized losses on interest rate swaps	(42,799		)	(1,384		)
Reclassification adjustment for gain on terminated interest rate swap included in net income	(67		)	—
Accumulated other comprehensive loss	$	(186,685	)	$	(135,748	)

(in thousands) 2018 2017
Cumulative foreign currency translation $ (119,369 ) $ (95,630 )
Cumulative supplemental benefit plans (7,008 ) (5,461 )
Net unrecognized gains on interest rate swaps 19,764
7,400
Accumulated other comprehensive loss $ (106,613 ) $ (93,691 )

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 impairments, capital contributions and loans from us, plus our equity in undistributed earnings or losses since inception of the ~~investment.~~investment, less dividends received.

For the three and nine months ended September 30, 2019, we did not have any operating revenues related to our investment in affiliates and had $0.3 million and $0.9 million for the three and nine months ended September 30, 2018, respectively. We recorded ~~equity~~operating expenses of $0.4 million and $1.0 million related to our investment in ~~losses of~~ affiliates ~~net of tax of $0.2 million~~ for ~~both~~ the three months ended September 30, 2019 and 2018, respectively, and ~~2017, and equity in earnings of affiliates, net of tax of $2.9~~$1.1 million and ~~equity in losses of affiliates, net of tax of $1.2~~$6.3 million for the nine months ended September 30, 2019 and 2018, ~~and 2017,~~ respectively. ~~For~~

During the three ~~months ended September 30, 2018~~ and 2017, we recorded $0.3 million and $2.8 million, respectively, of operating revenues and $1.0 million and $3.2 million, respectively, of operating expenses related to our investment in affiliates. For the nine months ended September 30, ~~2018 and 2017,~~2019, we recorded ~~$0.9~~a non-cash impairment charge of $1.5 million ~~and $6.9 million, respectively, of operating revenues and $6.3 million and $8.9 million, respectively, of operating expenses related to~~in our investment in ~~affiliates.~~

~~In June 2017,~~affiliates, net, due to an other-than-temporary loss because we ~~acquired a 45.0% interest in Mercury Network, LLC ("Mercury") for $70.0 million, which included a call option~~do not foresee an ability to ~~purchase~~recover the ~~remaining 55.0% interest within~~carrying amount of the next nine-month period. We initially fair-valued the call option using the Black-Scholes model at $4.6 million. In August 2017, we purchased the remaining 55.0% ownership of Mercury for an additional $83.0 million and wrote-off our related call option, which resulted in a netinvestment. This loss ~~of $1.9 million~~was recorded within gain/(loss) on investments and other, net in ~~the accompanying~~our condensed consolidated ~~statement~~statements of ~~operations for~~operations. NaN such impairments were recorded in the three and nine months ended September 30, ~~2017. Prior to our acquisition~~2018.

As of ~~the controlling interest in August 2017,~~September 30, 2019, and December 31, 2018, we ~~accounted for the investment in Mercury using the equity method. See~~ ~~Note 12 - Acquisitions~~ ~~for further discussion.~~had insignificant accounts payable and accounts receivable with these affiliates.

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").~~Solutions. In September 2012, we completed the ~~wind down~~wind-down of our consumer services business and our former appraisal management company business. In September 2011, we closed our marketing services business. In December 2010, we completed the sale of our Employer and Litigation Services businesses.

In connection with previous divestitures, we ~~retain the prospect of~~retained certain contingent liabilities of the businesses that were disposed of. These contingent liabilities include, among other items, liability for certain litigation matters, indemnification obligations orand potential breaches of representations or warranties. With respect to ~~one such~~our Employer and Litigation Services divestiture, we retained certain liabilities and, in September 2016, a jury returned an unfavorable verdict against athis discontinued operating unit, ~~that, if~~which we appealed. In August 2019, the verdict was upheld on ~~appeal, could result in indemnification exposure up~~appeal. We have accrued a potential loss of $21.7 million as of September 30, 2019 with respect to ~~$25.0 million, including interest. We do not consider~~ this ~~outcome to be probable and~~verdict, although we are pursuing ~~an appeal~~further review of the ~~verdict to eliminate or substantially reduce any potential post-divestiture contingency. Any actual~~verdict. The liability ~~that comes to fruition would be~~is reflected in our results from discontinued operations.

For the nine months ended September 30, 2017, we recorded a gain of $4.5 million related to a pre-tax legal settlement in AMPS within our discontinued operations. There was no such legal settlement for the nine months ended September 30, 2018. As of September 30, ~~2018~~2019, and December 31, ~~2017,~~2018, we recorded assets of discontinued operations of ~~$0.4~~$6.3 million ~~for both periods~~and $0.6 million, respectively, within prepaid expenses and other current assets within our condensed consolidated balance ~~sheets.~~sheets, mainly consisting of tax-related assets. Additionally, as of September 30, ~~2018~~2019 and December 31, ~~2017,~~2018, we recorded liabilities of ~~$1.8~~$24.1 million ~~for both periods~~and $2.2 million, respectively, within accounts payable and other accrued ~~expenses.~~expenses, which mainly consisted of legal-related accruals.

Tax Escrow Disbursement Arrangements

We administer tax escrow disbursements as a service to our clients in connection with our ~~property~~ tax ~~processing solutions.~~services business. These deposits are maintained in segregated accounts for the benefit of our ~~clients. Tax escrow deposits~~clients and totaled ~~$909.5 million~~$1.3 billion and $0.7 billion as of September 30, ~~2018~~,2019 and ~~$961.5 million as of~~ December 31, ~~2017~~.2018, respectively. 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 ~~generally derive operating income and expenses~~record credits from these ~~deposits~~activities as a reduction to related administrative expenses, including the cost of bank fees and ~~bear the risk of loss. To mitigate the risk of loss, we diversify the placement of funds across institutions with high credit ratings.~~other administration costs.

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 total claim reserves relating to incorrect disposition of assets of ~~$21.5~~$21.4 million and ~~$21.7~~$21.2 million as of September 30, ~~2018~~,2019 and December 31, ~~2017~~2018, ~~respectively, of which~~respectively. Within these amounts, $9.3 million and ~~$9.4~~$9.2 million, respectively, are short-term and are reflected within accounts payable and other accrued expenses within our accompanying condensed consolidated balance sheets. The remaining reserves are reflected within other liabilities.

Recent Accounting Pronouncements

In ~~August 2018,~~April 2019, the Financial Accounting Standards Board ~~("FASB"~~(“FASB”) issued guidance ~~that amends~~to amend or clarify certain areas within three previously issued standards related to financial instruments which includes clarification for fair value disclosure requirements. The guidance removes disclosure requirements on the transfers between Level 1 and Level 2 of the fair value hierarchy in addition to the disclosure requirements on the policy for timing of transfers between levels and the valuation process for Level 3 fair value measurements. The guidance clarifiesusing the measurement ~~uncertainty disclosure and adds disclosure requirements for Level 3 unrealized gains and~~alternative, measuring credit losses and ~~significant unobservable inputs used to develop Level 3 fair value measurements.~~accounting for derivatives and hedging. The amendments in this guidance isare largely effective for fiscal years beginning after December 15, ~~2019. Entities are permitted to~~2019 with early ~~adopt any removed or modified disclosures upon issuance and delay~~ adoption ~~of the additional disclosures until the effective date.~~permitted. We have not elected to early ~~adopt the removed disclosures~~adoption and do not anticipate ~~adoption of the modified or added disclosures to~~that this guidance will have a material impact on our consolidated financial statements.

In August 2018, the FASB issued guidance which modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The guidance removes certain disclosures, while modifying and adding others, and is effective for fiscal years ending after December 15, 2020 on a retrospective basis. Early adoption is permitted, however we have not elected early adoption. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In August 2018, the FASB issued new guidance on accounting for implementation, set-up and other upfront costs incurred in a cloud computing arrangement that is hosted by a vendor under a service contract. This new guidance aligns the requirements for capitalization with those for capitalizing implementation costs incurred for internal-use software with additional quantitative and qualitative disclosures required. The guidance is effective for fiscal years beginning after December 15, 2018. As permitted, we have elected early adoption as of period-end on a prospective basis. The adoption of this guidance did not have a material impact on our consolidated financial statements.

In March 2018, the FASB issued guidance pertaining to the accounting for the Tax Cuts and Jobs Act ("TCJA"), allowing companies a year to finalize and record any provisional or inestimable impacts for the TCJA. This guidance was effective upon issuance during the first quarter. The adoption of this guidance did not have a material effect on our financial statements. See ~~Note 9 - Income Taxes~~ ~~for discussion of the impacts of the TCJA on our Company.~~

In February 2018, the FASB issued guidance permitting companies to reclassify stranded tax effects from the TCJA from accumulated other comprehensive loss to retained earnings. The stranded tax effects consist of deferred taxes originally recorded in accumulated other comprehensive loss that exceed the newly enacted federal corporate tax rate. As permitted in the guidance, we elected to early adopt as of January 1, 2018. The net impact of adoption was a balance sheet reclassification of a $0.4 million unrealized loss within accumulated other comprehensive loss to retained earnings.

In August 2017, the FASB issued guidance to amend and improve the accounting for hedging activities. The amendment eliminates the requirement to separately measure and report hedge ineffectiveness. An initial quantitative assessment to establish that the hedge is highly effective is still required but the amendment allows until the end of the first quarter it is designated to perform the assessment. After initial qualification, a qualitative assessment can be performed if the hedge is highly effective and the documentation at inception can reasonably support an expectation of high effectiveness throughout the hedge’s term. The amendment requires companies to present all hedged accounting elements that affect earnings in the same income statement line as the hedged item. For highly effective cash flow hedges, fair value changes will be recorded in other comprehensive ~~income~~loss and reclassified to earnings when the hedged item impacts earnings. The guidance isbecame effective prospectively infor fiscal years beginning after December 15, 2018. ~~Early adoption is permitted, however we~~In October 2018, the FASB issued incremental guidance to this update to permit the Overnight Index Swap Rate and the Secured Overnight Financing Rate to be utilized as US benchmark interest rates for hedge accounting purposes. We have ~~not elected early adoption. We do not expect the adoption of~~adopted this guidance ~~to have~~beginning with fiscal year 2019 as required, which has not had a material impact on our consolidated financial statements.

In November 2016, the FASB issued guidance that affects the presentation of restricted cash in the statement of cash flows and related disclosures. The guidance requires that the statement of cash flows explain the change in the combined total of restricted and unrestricted balances. Disclosure of how the statement of cash flows reconciles to the balance sheet is required if restricted cash is shown separately from cash and cash equivalents and the nature of the restrictions. We have adopted this guidance in the current year as required. Please see further discussion above within this Note.

In February 2016, the FASB issued guidance on lease accounting which requires leases, ~~with durations greater than 12-months~~regardless of classification, to be recognized on the balance sheet as lease assets and ~~lease liabilities beginning after December 15, 2018.~~liabilities. The objective of this standard is to provide greater transparency on the amount, timing and uncertainty of cash flows arising from leasing arrangements. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee ~~will depend on~~depends upon its classification as a finance or operating lease. ~~Early adoption is permitted, however we will elect to adopt on the required date of~~On January 1, 2019, ~~via~~we adopted the new transition method election issued by the FASB in July 2018 where comparative periods presented in the period of adoption do not need to be restated. We are continuing to evaluate the impact of adopting this standard on our consolidated financial statements, controls and processes, and are in the process of implementing a new lease administration software solution. We anticipate that our notes to the consolidated financial statements related to leases will be expanded and the most substantial change to our consolidated financial statements will be a gross-up of our total assets and liabilities of less than 5%, based on our preliminary analysis. Further, the guidance is not expected to materially impact our results of operations in the upcoming fiscal years and interim periods. We will continue to monitor the overall impact of adoption and update our disclosures as appropriate.

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 been included in 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 fair value from the application of 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 loss 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 in relation 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. We have adopted this guidance in the current year, which has not had a material impact on our financial statements.

In May 2014, the FASB issued updated guidance on revenue recognition in order to i) remove inconsistencies in revenue requirements, ii) provide a better framework for addressing revenue issues, iii) improve comparability across entities, industries, etc., iv) provide more useful information through improved disclosures, and v) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. Under the amendment, an entity should recognize revenue to depict the transfer of promised goods or services to customers in the amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting treatment for the incremental costs of obtaining a contract, which would not have been incurred had the contract not been obtained. Further, an entity is required to disclose sufficient information to enable the user of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers. The updated guidance provides two methods of adoption: i) retrospective application to each prior reporting period presented, or ii) recognition of the cumulative effect from the retrospective application at the date of initial application.

~~On January 1, 2018, we adopted this new~~ accounting standard, and all ~~the~~ related amendments, using the modified retrospective ~~approach for all contracts that were not in effect as of the adoption date. The comparative~~approach. Comparative information has not been restated and continues to be reported under the ~~accounting~~ standards in effect for those prior ~~periods. We also applied~~periods as allowed by the guidance. As part of our adoption we elected the package of practical expedients permitted under the transition guidance which ~~permit (i)~~allows us to carry forward our historical lease classification of pre-existing leases, treatment of pre-existing indirect costs, as well as our conclusions of whether a pre-existing contract contains a lease. We have implemented internal controls to enable the ~~omission~~preparation of ~~remaining performance obligations that have contracts with an original expected duration~~financial information upon our adoption in the first quarter of ~~one year or less, (ii) the omission of performance obligations, which are for usage-based variable consideration, which we will recognize over the term~~2019.

Adoption of the ~~arrangements based on~~new lease accounting standard resulted in the ~~actual usage by the customers~~recording of operating lease assets and ~~(iii) expensing incremental contract costs, which would have otherwise been recognized in one year or less.~~

~~The cumulative effect~~lease liabilities of ~~the changes made to our condensed consolidated balance sheet~~approximately $67.7 million and $103.9 million, respectively, as of January 1, ~~2018 for the adoption of the new accounting standard is~~2019. There was no impact to opening equity as ~~follows:~~

(in thousands) December 31, 2017 Adoption Adjustments January 1, 2018
Assets
Accounts receivable, net $ 256,595
$ (941 ) $ 255,654
Prepaid expenses and other current assets 47,220
(965 ) 46,255
Other assets 104,516
2,546
107,428

Liabilities
Contract liabilities, current $ 303,948
$ 6,767
$ 310,715
Contract liabilities, net of current 504,900
24,801
529,701
Deferred income tax liability 102,571
(7,736 ) 94,835

Equity
Retained earnings $ 877,111
$ (23,183 ) $ 853,928
Accumulated other comprehensive loss (93,691 ) (9 ) (93,700 )

In connection with the adoption of the new accounting guidance, we increased our total contract liabilities by $31.6 million of which $23.2 million was the result of a change in the accounting for contracts containing material rights the client would have not received without entering into the contract. The performance obligation associated with the material right is recognized when the future products or services are transferred or when the option expires. Further, we recorded $1.6 million of contract-related assets associated with the change in accounting, which are presented in prepaid expenses and other current assets and other assets in our condensed consolidated balance sheet. As a result of adoption as the ~~adoption-related adjustments previously discussed, we adjusted our related~~difference between the asset and liability balance is attributable to reclassifications of pre-existing balances, such as deferred ~~income tax~~ and ~~retained earnings accounts.~~

prepaid rent, into the lease asset balance. The ~~impact of the~~ adoption of ~~the new accounting~~this standard onhas not materially impacted our ~~condensed consolidated balance sheet is as follows:~~

September 30, 2018
(in thousands) As Reported Balances Without Adoption Adjustments Effect of Change Higher/(Lower)
Assets
Accounts receivable, net $ 254,263
$ 255,364
$ (1,101 )
Prepaid expenses and other current assets 53,515
53,153
362
Income tax receivable 8,984
7,985
999
Other assets 119,380
117,013
2,367

Liabilities
Accounts payable and other accrued expenses $ 157,580
$ 157,908
$ (328 )
Contract liabilities, current 308,659
299,617
9,042
Contract liabilities, net of current 520,544
523,175
(2,631 )
Deferred income tax liability 109,356
110,101
(745 )

Equity
Accumulated other comprehensive loss $ (106,613 ) $ (106,642 ) $ 29
Retained earnings 962,765
965,505
(2,740 )

~~The impact of the adoption of the new accounting standard on our condensed~~ consolidated statement of operations ~~is as follows:~~

For the Three Months Ended September 30, 2018
(in thousands) As Reported Balances Without Adoption Adjustments Effect of Change Higher/(Lower)
Operating revenue $ 451,768
$ 451,239
$ 529
Cost of services 230,419
230,361
58
Selling, general and administrative expenses 113,075
113,814
(739 )
Operating income 59,780
58,570
1,210
Provision for income taxes 20,836
20,534
302
Net income 22,451
21,543
908

For the Nine Months Ended September 30, 2018
(in thousands) As Reported Balances Without Adoption Adjustments Effect of Change Higher/(Lower)
Operating revenue $ 1,385,069
$ 1,359,966
$ 25,103
Cost of services 709,154
709,550
(396 )
Selling, general and administrative expenses 340,049
340,985
(936 )
Operating income 193,836
167,401
26,435
Provision for income taxes 37,432
31,440
5,992
Net income 109,254
88,811
20,443

~~During the second quarter~~or presentation of ~~2018,~~cash flows and we amended contractual terms, which eliminated certain performance obligations that would have otherwise been fulfilled over time. For the nine months ended September 30, 2018, the difference between the reported revenues and the pro forma revenues without adoption adjustments from the new revenue guidance is primarily due to the removal of the aforementioned performance obligations. We do not ~~expect the new accounting standard to have~~anticipate a material impact ~~to net income prospectively,~~in the future based on our current operations. See below for our accounting policy reflecting the updated guidance.

Leases

We determine if an arrangement contains a lease at inception and determine the classification of the lease, as either operating or finance, at commencement.

Operating and finance lease assets and liabilities are recorded based on the present value of future lease payments which factors in certain qualifying initial direct costs incurred as well as any lease incentives received. If an implicit rate is not readily determinable, we utilize our incremental borrowing rate and inputs from third-party lenders to determine the appropriate discount rate. Lease expense for operating lease payments are recognized on a straight-line basis over the lease term. Finance leases incur interest expense using the effective interest method in addition to amortization of the leased asset on a straight-line basis, both over the applicable lease term. Lease terms may factor in options to extend or terminate the lease.

We adhere to the short-term lease recognition exemption for all classes of assets (i.e. facilities and ~~conditions~~equipment). As a result, leases with an initial term of ~~contracts in effect at this time. See~~ ~~Note 6 - Operating Revenues~~twelve months or less are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. In addition, for ~~additional information.~~certain equipment leases, we account for lease and non-lease components, such as services, as a single lease component as permitted.

Note 2 - Property and Equipment, Net

Property and equipment, net as of September 30, ~~2018~~2019 and December 31, ~~2017~~2018 consists of the following:



(in thousands)	2019			2018
Land	$	7,476		$	7,476
Buildings	6,487			6,487
Furniture and equipment	71,993			68,851
Capitalized software	897,990			902,482
Leasehold improvements	44,424			43,476
Construction in progress	3,297			669
	1,031,667			1,029,441
Less accumulated depreciation	(585,610		)	(572,944		)
Property and equipment, net	$	446,057		$	456,497

(in thousands) 2018 2017
Land $ 7,476
$ 7,476
Buildings 6,487
6,487
Furniture and equipment 65,560
63,255
Capitalized software 926,312
878,156
Leasehold improvements 42,036
39,990
Construction in progress 4,191
1,349
1,052,062
996,713
Less accumulated depreciation (598,631 ) (549,054 )
Property and equipment, net $ 453,431
$ 447,659

Depreciation expense for property and equipment, net was approximately ~~$22.6~~$22.1 million and ~~$21.4~~$22.6 million for the three months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively, and ~~$66.8~~$68.0 million and ~~$62.1~~$66.8 million for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively.

Impairment losses for property and equipment, net of $0.1 million and $12.3 million were recorded for the three and nine months ended September 30, 2019, respectively. For the three and nine months ended September 30, 2018, impairment losses were less than $0.1 million. See Note 7 - Fair Value for further discussion.

Note 3 – 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, ~~2018~~,2019 is as follows:



(in thousands)	PIRM			UWS			Consolidated
Balance as of January 1, 2019
Goodwill	$	1,107,466		$	1,292,013		$	2,399,479
Accumulated impairment losses	(600		)	(6,925		)	(7,525		)
Goodwill, net	1,106,866			1,285,088			2,391,954
Acquisition	—			6,551			6,551
Measurement period adjustments	(83		)	—			(83		)
Disposal	—			(1,337		)	(1,337		)
Translation adjustments	(4,113		)	—			(4,113		)
Balance as of September 30, 2019
Goodwill, net	$	1,102,670		$	1,290,302		$	2,392,972

(in thousands) PIRM UWS Consolidated
Balance as of January 1, 2018
Goodwill $ 1,029,223
$ 1,228,901
$ 2,258,124
Accumulated impairment losses (600 ) (6,925 ) (7,525 )
Goodwill, net 1,028,623
1,221,976
2,250,599
Acquisitions 14,257
63,112
77,369
Disposal (1,803 ) —
(1,803 )
Translation adjustments (13,868 ) —
(13,868 )
Balance as of September 30, 2018
Goodwill, net $ 1,027,209
$ 1,285,088
$ 2,312,297

For the three and nine months ended September 30, ~~2018,~~2019, we recorded a goodwill disposal of ~~$14.1~~$1.3 million ~~within our Property Intelligence & Risk Management ("PIRM") reporting unit~~ related to the sale of a non-core business.

See Note 13 - Acquisitions for discussion of current year acquisition ~~of eTech Solutions Limited ("eTech")~~ and ~~$0.2 million in~~ measurement period adjustments attributable to prior year acquisitions. In addition, we recorded a loss of $1.8 million associated with a non-core business-line disposal within PIRM that was not significant. Further, we recorded goodwill of $63.6 million within our Underwriting & Workflow Solutions ("UWS") reporting unit related to the acquisition of a la mode technologies, LLC ("a la mode"), partially offset by a $0.5 million measurement period adjustment attributable to a prior year acquisition. See ~~Note 12 - Acquisitions~~ ~~for further discussion.~~adjustments.

Note 4 – Other Intangible Assets, Net

Other intangible assets, net ~~consist~~consists of the following:



	September 30, 2019							December 31, 2018
(in thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Client lists	$	660,010	$	(342,276	)	$	317,734	$	706,253	$	(327,201	)	$	379,052
Non-compete agreements	35,559		(24,077		)	11,482		35,224		(20,156		)	15,068
Tradenames and licenses	126,642		(63,864		)	62,778		131,130		(56,845		)	74,285
	$	822,211	$	(430,217	)	$	391,994	$	872,607	$	(404,202	)	$	468,405

September 30, 2018 December 31, 2017
(in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net
Client lists $ 720,525
$ (336,422 ) $ 384,103
$ 690,693
$ (303,632 ) $ 387,061
Non-compete agreements 33,833
(18,913 ) 14,920
28,118
(15,528 ) 12,590
Trade names and licenses 133,231
(57,217 ) 76,014
125,090
(49,128 ) 75,962
$ 887,589
$ (412,552 ) $ 475,037
$ 843,901
$ (368,288 ) $ 475,613

Amortization expense for other intangible assets, net was ~~$16.3~~$14.4 million and ~~$14.9~~$16.3 million for the three months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively, and ~~$47.8~~$46.4 million and ~~$42.9~~$47.8 million for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively.

For the nine months ended September 30, 2019, impairment losses for other intangible assets, net of $35.6 million were recorded, all of which were incurred in the second quarter of 2019. For both the three and nine months ended September 30, 2018, there were 0 impairment losses recorded. See Note 7 - Fair Value for further discussion.

Estimated amortization expense for other intangible assets, net is as follows:



(in thousands)
Remainder of 2019	$	15,385
2020	56,797
2021	53,810
2022	52,039
2023	44,439
Thereafter	169,524
	$	391,994

(in thousands)
Remainder of 2018 $ 15,963
2019 62,431
2020 60,263
2021 57,557
2022 55,518
Thereafter 223,305
$ 475,037

Note 5 – Long-Term Debt

Our long-term debt consists of the following:



		September 30, 2019								December 31, 2018
(in thousands)		Gross		Debt Issuance Costs			Net			Gross		Debt Issuance Costs			Net
Bank debt:
	Term loan facility borrowings due May 2024, weighted-average interest rate of 4.00% as of September 30, 2019	$	1,706,250	$	(15,747	)	$	1,690,503		$	—	$	—		$	—
	Revolving line of credit borrowings due May 2024, weighted-average interest rate of 4.00% as of September 30, 2019	—		(6,786		)	(6,786		)	—		—			—
	Term loan facility borrowings due August 2022, weighted-average interest rate of 4.05% as of December 31, 2018, modified May 2019	—		—			—			1,597,500		(13,043		)	1,584,457
	Revolving line of credit borrowings due August 2022, weighted-average interest rate of 4.05% as of December 31, 2018, modified May 2019	—		—			—			178,146		(5,216		)	172,930
Notes:
	7.55% senior debentures due April 2028	14,524		(41		)	14,483			14,645		(44		)	14,601
Other debt:
	Various debt instruments with maturities through March 2024	6,319		—			6,319			7,188		—			7,188
Total long-term debt		1,727,093		(22,574		)	1,704,519			1,797,479		(18,303		)	1,779,176
Less current portion of long-term debt		68,247		—			68,247			26,935		—			26,935
Long-term debt, net of current portion		$	1,658,846	$	(22,574	)	$	1,636,272		$	1,770,544	$	(18,303	)	$	1,752,241

September 30, 2018 December 31, 2017
(in thousands) Gross Debt Issuance Costs Net Gross Debt Issuance Costs Net
Bank debt:

Term loan facility borrowings due August 2022, weighted-average interest rate of 3.84% and 3.28% as of September 30, 2018 and December 31, 2017, respectively $ 1,642,500
$ (14,008 ) $ 1,628,492
$ 1,755,000
$ (17,017 ) $ 1,737,983
Revolving line of credit borrowings due August 2022, weighted-average interest rate of 3.84% as of September 30, 2018 120,000
(5,580 ) 114,420
—
(6,672 ) (6,672 )
Notes:

7.55% senior debentures due April 2028 14,645
(45 ) 14,600
14,645
(48 ) 14,597
Other debt:

Various debt instruments with maturities through 2023 7,411
—
7,411
7,662
—
7,662
Total long-term debt 1,784,556

(19,633 ) 1,764,923
1,777,307

(23,737 ) 1,753,570
Less current portion of long-term debt 27,068
—
27,068
70,046
—
70,046
Long-term debt, net of current portion $ 1,757,488
$ (19,633 ) $ 1,737,855
$ 1,707,261

$ (23,737 )
$ 1,683,524

As of September 30, ~~2018~~2019 and December 31, ~~2017~~2018, we ~~have~~ recorded ~~$1.5~~$1.4 million and $~~1.0~~0.7 million, respectively, of accrued interest expense ~~respectively,~~ on our debt-related instruments within accounts payable and other accrued expenses.

Credit Agreement

In ~~August 2017,~~May 2019, we amended and restated our credit agreement ~~(“Credit~~(the “Credit Agreement”) with Bank of America, N.A., as the administrative agent, and other financial institutions. The Credit Agreement provides for a $1.8 billion five-year term loan A facility ~~(“Term~~(the “Term Facility”), and a ~~$700.0~~$750.0 million five-year revolving credit facility ~~("Revolving Facility"~~(the “Revolving Facility”). The Term Facility matures, and the Revolving Facility expires, in ~~August 2022.~~May 2024. The Revolving ~~facility~~Facility includes a $100.0 million ~~multicurrency~~multi-currency revolving sub-facility and a $50.0 million letter of credit sub-facility. The Credit Agreement also provides for the ability to increase the Term Facility ~~and/or~~and Revolving Facility by up to ~~$100.0~~$300.0 million in the aggregate; however, the lenders are not obligated to do so.

The loans under the Credit Agreement bear interest, at the election of the Company, at (i) the Alternate Base Rate (defined as the greater of (a) Bank of America's "prime rate", (b) the Federal Funds effective rate plus 0.50% and (c) the reserve adjusted London interbank offering rate for a one-month Eurocurrency borrowing plus 1.00%) plus the Applicable Rate (as defined in the Credit Agreement) or (ii) the London interbank offering rate for Eurocurrency borrowings, adjusted for statutory reserves ("Adjusted Eurocurrency Rate") plus the Applicable Rate. The initial Applicable Rate for Alternate Base Rate borrowings is 0.75% and for Adjusted Eurocurrency Rate borrowings is 1.75%. After September 2019, the Applicable Rate will vary depending upon the Company's 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 the Company to pay a commitment fee for the unused portion of the Revolving Facility, which will be a minimum of 0.20% and a maximum of 0.35%, depending on the Company's leverage ratio.

The Credit Agreement provides that loans under the Term Facility shall be repaid in equal quarterly installments of $21.9 million, commencing on September 30, 2019 and continuing on each three-month anniversary thereafter, subject to the application of prepayments to quarterly installments. The outstanding balance of the term loans will be due in May 2024.

The Credit Agreement contains the following financial maintenance covenants: (i) a maximum total leverage ratio not to exceed 4.50:1.00 (stepped down to 4.25:1.00 starting with the fiscal quarter ending on September 2020, with a further step down to 4.00:1.00 starting with the fiscal quarter ending on September 2021, followed by a final step down to 3.75:1.00 starting with the fiscal quarter ending on September 2022) and (ii) a minimum interest coverage ratio of 3.00:1.00.

As of September 30, ~~2018,~~2019, we had a remaining borrowing capacity of ~~$580.0~~$750.0 million under the Revolving Facility and we were in compliance with all ~~of our~~financial and restrictive covenants under the Credit Agreement.

Debt Issuance Costs

In connection with the amendment and restatement of the Credit Agreement, in ~~August 2017,~~May 2019, we incurred approximately ~~$14.3~~$9.7 million of debt issuance costs of which ~~$14.0~~$9.6 million were initially capitalized within long-term debt, net of current in the accompanying condensed consolidated balance sheets. In addition, when we amended and restated the Credit Agreement, we ~~recognized a $1.8~~wrote-off previously unamortized debt issuance costs of $1.5 million ~~loss~~ within gain/(loss) on investments and other, net in the accompanying consolidated statement of ~~operations; resulting~~operations, which resulted in a remaining ~~$12.0~~$14.6 million of previously unamortized costs. We will amortize all of these costs over the term of the Credit Agreement. For ~~both~~ the three months ended September 30, 2019 and 2018, $1.2 million and ~~2017,~~ $1.4 million, respectively, were ~~expensed~~recognized in the accompanying condensed consolidated ~~statement~~statements of operations related to the amortization of debt issuance costs. For the nine months ended September 30, 2019 and 2018, ~~and 2017, $4.1~~$3.8 million and ~~$4.3~~$4.1 million, respectively, were ~~expensed~~recognized in the accompanying condensed consolidated ~~statement~~statements of operations related to the amortization of debt issuance costs.

7.55% Senior Debentures

In April 1998, we issued $100.0 million in aggregate principal amount of 7.55% senior debentures due 2028. The indentures governing these debentures, as amended, contain limited restrictions on us.

Interest Rate Swaps

We have entered into amortizing interest rate swaps ~~("Swaps"~~(“Swaps”) in order to convert a portion of our interest rate exposure on the Term Facility floating rate borrowings from variable to fixed. Under the Swaps, we agree to exchange floating rate for fixed rate interest payments periodically over the life of the agreement. The floating rates in our Swaps are based on the one-month London interbank offering rate. The notional balances, terms and maturities of our Swaps are designed to have at least 50% of our debt as fixed rate.

~~In the current year we entered into additional Swaps and, as~~As of September 30, ~~2018,~~2019, the Swaps have a combined remaining notional balance of $1.3 billion, a weighted average fixed interest rate of ~~1.80%~~2.05% (rates range from 1.03% to 2.98%), and scheduled terminations through December 2025. ~~As previously indicated, notional~~Notional balances under our Swaps are scheduled to increase and decrease ~~over their contract lengths~~ based on our expectations of the level of variable rate debt ~~levels.~~to be in effect in future periods. Currently, we have scheduled notional amounts of between $1.3 billion and ~~$1.5~~$1.2 billion through ~~December 2020,~~September 2021, then ~~$1.0~~$1.1 billion and ~~$1.2~~$1.0 billion through August 2022, and $416.0 million and $400.0 million thereafter until December 2025. Approximate weighted average fixed interest rates for the aforementioned time intervals are 2.39%, 2.64%, and 2.95%, respectively.

We have designated the Swaps as cash flow hedges. The estimated fair ~~value~~values of these cash flow hedges isare recorded in prepaid expenses and other current assets ~~and~~as well as other assets and other liabilities in the accompanying condensed consolidated balance sheets. As of September 30, ~~2018~~2019, the estimated fair value of certain of these cash flow hedges resulted in an asset of ~~$26.9~~$1.2 million recorded within prepaid and other current assets, as well as a liability of $58.3 million. As of December 31, 2018, the estimated fair value of certain of these cash flow hedges resulted in an asset of $13.3 million, of which ~~$1.1~~$0.6 million ~~is classified~~was recorded within prepaid expenses and other current assets, as well as a liability of ~~$0.5~~$15.2 million. ~~As of December 31, 2017, we recorded an asset of $12.0 million within other assets.~~

Unrealized losses of $8.1 million (net of $2.7 million in deferred taxes) and unrealized gains of $2.5 million (net of $0.8 million in deferred taxes) ~~and unrealized gains of less than $0.1 million (net of less than $0.1 million in deferred taxes)~~ for the three months ended September 30, 2019 and 2018, ~~and 2017,~~ respectively, were recognized in other comprehensive loss related to the Swaps. Unrealized losses of $41.4 million (net of $13.8 million in deferred taxes) and unrealized gains of $10.8 million (net of $3.6 million in deferred taxes) ~~and unrealized gains of $1.6 million (net of $1.0 million in deferred taxes)~~ for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively, were recognized in other comprehensive ~~(loss)/income~~loss related to the Swaps.

Note 6 – Leases

We have entered into renewable commitment agreements for certain real estate facilities and equipment, such as computers and printers, which we individually classify as either operating or finance leases. We possess contractual options to renew certain leases ranging from 2 months to 5 years at a time, as well as, in certain instances, contractual options to terminate leases with varying notification requirements and potential termination fees. As of September 30, 2019, our leases with initial terms greater than twelve months had remaining lease terms of up to 13 years.

The following table provides a breakdown of lease balances within our condensed consolidated balance sheet as of September 30, 2019 and December 31, 2018:



(in thousands)
Lease Type and Classification	Included Within	September 30, 2019		December 31, 2018 (1)
Assets
Operating	Operating lease assets	$	65,302	$	—
Finance	Property and equipment, net	6,203		5,002
Total		$	71,505	$	5,002

Liabilities
Current
Operating	Operating lease liabilities, current	$	16,839	$	—
Finance	Current portion of long-term debt	2,622		2,340
Long-term
Operating	Operating lease liabilities, net of current	85,844		—
Finance	Long-term debt, net of current	3,697		2,753
Total		$	109,002	$	5,093

(1) As permitted, December 31, 2018 is presented under the guidance in effect at that time. As such, 2018 does not contain comparable operating assets and/or liabilities. See Note 1 - Basis for Condensed Consolidated Financial Statements for further details.

For the three and nine months ended September 30, 2019, the components of lease cost are as follows:



(in thousands)		September 30, 2019
Lease Cost	Included Within	For the Three Months Ended		For the Nine Months Ended
Finance lease cost
Amortization of lease assets	Depreciation and amortization	$	736	$	2,307
Interest on lease liabilities	Interest expense	$	39	$	107

Operating lease cost	Selling, general and administrative expenses	$	5,284	$	16,315
Operating lease cost	Cost of services	136		208
		$	5,420	$	16,523

Total lease cost for all operating leases, including month-to-month rentals, for the three and nine months ended September 30, 2018, excluding taxes, was $5.5 million and $16.8 million, respectively.

Other supplementary information for the nine months ended September 30, 2019 are as follows:



(in thousands)
Other Information	Finance Leases			Operating Leases
Cash paid for amounts included in measurement of liabilities
Operating cash outflows	$	107		$	19,714
Financing cash outflows	$	2,306		$	—

Right-of-use assets obtained in exchange for lease liabilities	$	3,537		$	9,587
Weighted average remaining lease term (years)	2.8			8.4
Weighted average discount rate	3.78		%	6.34		%

Maturities of lease liabilities as of September 30, 2019 are as follows:



(in thousands)	Finance Leases			Operating Leases
2019	$	759		$	4,122
2020	2,621			24,732
2021	1,737			19,760
2022	1,117			12,911
2023	446			10,596
Thereafter	70			63,691
Total lease payments	6,750			135,812
Less imputed interest	(431		)	(33,129		)
Total	$	6,319		$	102,683

Future minimum lease commitments, undiscounted, as of December 31, 2018 were as follows:



(in thousands)
2019	$	26,738
2020	25,413
2021	19,214
2022	12,149
2023	8,908
Thereafter	57,179
Total	$	149,601

As of September 30, 2019, we have 3 operating leases for facilities which have not yet commenced with a combined initial lease liability of approximately $4.6 million and initial terms ranging from 2 to 8 years. These liabilities are not reflected in our condensed consolidated balance sheet or the maturity schedule as of September 30, 2019 shown above.

Note 7 – Fair Value

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. 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 active markets for similar assets and liabilities, or, quoted prices in markets that are not active.

In estimating fair value, we used the following methods and assumptions:

Cash and Cash Equivalents

For cash and cash equivalents, 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/bank guarantees secured by us, escrow accounts due to acquisitions and divestitures and short-term investments within our deferred compensation plan trust. We deem the carrying value to be a reasonable estimate of fair value due to the nature of these instruments.

Other Investments

Other investments is currently comprised of a minority equity investment in a foreign enterprise which we measure at cost and adjust to fair value on a quarterly basis when there are observable price changes in orderly transactions for the identical, or similar, investments. Changes in fair value are recorded within gain/(loss) on investments and other, net in our condensed consolidated statement of operations.

Contingent Consideration

The fair value of our contingent consideration was estimated using the Monte-Carlo simulation model, which relies on significant assumptions and estimates including discount rates and future market conditions, among others.

Long-Term Debt

The fair value of 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 Swaps

The fair values of the Swaps were estimated based on market-value quotes received from the counterparties to the agreements.

The fair values of our financial instruments as of September 30, 2019 are presented in the following table:



(in thousands)	Fair Value Measurements Using
As of September 30, 2019	Level 1		Level 2		Level 3		Fair Value
Financial Assets:
Cash and cash equivalents	$	88,238	$	—	$	—	$	88,238
Restricted cash	2,526		11,092		—		13,618
Other investments	—		1,825		—		1,825
Total	$	90,764	$	12,917	$	—	$	103,681

Financial Liabilities:
Contingent consideration	$	—	$	—	$	4,895	$	4,895
Total debt	—		1,731,066		—		1,731,066
Total	$	—	$	1,731,066	$	4,895	$	1,735,961

Derivatives:
Asset for Swaps	$	—	$	1,218	$	—	$	1,218
Liability for Swaps	$	—	$	58,335	$	—	$	58,335

As of December 31, 2018
Financial Assets:
Cash and cash equivalents	$	85,271	$	—	$	—	$	85,271
Restricted cash	1,366		11,613		—		12,979
Other investments	—		—		7,930		7,930
Total	$	86,637	$	11,613	$	7,930	$	106,180

Financial Liabilities:
Contingent consideration	$	—	$	—	$	5,700	$	5,700
Total debt	—		1,797,597		—		1,797,597
Total	$	—	$	1,797,597	$	5,700	$	1,803,297

Derivatives:
Asset for Swaps	$	—	$	13,344	$	—	$	13,344
Liability for Swaps	$	—	$	15,188	$	—	$	15,188

The following non-financial instruments were measured at fair value, on a non-recurring basis, as of and for the nine months ended September 30, 2019:



			Fair Value Measurements Using
(in thousands)	Remaining Fair Value (1)		Level 1		Level 2		Level 3		Impairment Losses
Other intangible assets, net	$	—	$	—	$	—	$	—	$	35,600
Property and equipment, net	$	—	$	—	$	—	$	—	$	12,312
Investment in affiliates, net	$	—	$	—	$	—	$	—	$	1,511
	$	—	$	—	$	—	$	—	$	49,423

(1) Remaining fair value represents the post-impairment fair value related to the specifically impaired asset(s)

For the nine months ended September 30, 2019, we recorded non-cash impairment charges of $35.6 million in other intangible assets, net, which were all incurred in the second quarter of 2019. For the three and nine months ended September 30, 2019, non-cash impairment charges of $0.1 million and $12.3 million, respectively, were recorded in property and equipment, net related to capitalized software. The current year impairments are primarily due to ongoing business transformation activities of our appraisal management company within our Underwriting & Workflow Solutions (“UWS”) segment. The impairments were derived using an undiscounted cash flow methodology. The impairments within other intangible assets, net include $32.3 million for client lists and $3.3 million for licenses. For the three and nine months ended September 30, 2019, we also recorded a $1.5 million non-cash impairment charge in investment in affiliates, net, which is included within gain/(loss) on investments and other, net in our condensed consolidated statement of operations.

In connection with the 2017 acquisitions of Myriad Development, Inc. and an insignificant business, we entered into contingent consideration agreements for up to $20.5 million in cash by 2022 upon the achievement of certain revenue targets ending in fiscal year 2021. These contingent payments were originally recorded at a fair value of $6.2 million using the Monte-Carlo simulation model. In connection with the 2019 acquisition of National Tax Search, LLC (“NTS”), we entered into a contingent consideration agreement for up to $7.5 million in cash based upon certain revenue targets in fiscal years 2020 and 2021. This contingent consideration has been initially assessed with no fair value using the Monte-Carlo simulation model. The contingent payments are fair-valued quarterly, and changes are recorded within gain/(loss) on investments and other, net in our condensed consolidated statement of operations. During the nine months ended September 30, 2019, we decreased the fair value of our contingent considerations by $0.2 million and recorded the gain in our condensed consolidated statement of operations. During the three months ended September 30, 2019, there were no adjustments to our contingent consideration. During the three and nine months ended September 30, 2018, we recorded a loss of $0.1 million and a gain of $1.0 million, respectively.

Due to observable price changes in an inactive market, in the first half of 2019, we recorded a combined unfavorable fair value adjustment of $6.6 million to a minority equity investment, which was recorded within gain/(loss) on investments and other, net in our condensed consolidated statement of operations for the nine months ended September 30, 2019. As a result of the observable price change in the current year, we transferred the minority equity investment classification from Level 3 to Level 2 within the fair value hierarchy above.

Note 68 – Operating Revenues

Operating revenues by solution type ~~consists~~consist of the following:


(in thousands)	For the Three Months Ended September 30, 2018									PIRM			UWS			Corporate and Eliminations				Consolidated
	PIRM		UWS		Corporate and Eliminations			Consolidated					UWS			Corporate and Eliminations				Consolidated
For the Three Months Ended September 30, 2019										PIRM		PIRM			UWS				Corporate and Eliminations			Consolidated
Property insights	$	125,319	$	—	$	—		$	125,319			PIRM			UWS				Corporate and Eliminations			Consolidated
Insurance & spatial solutions	41,666		—		—			41,666
Insurance and spatial solutions										48,739			—			—				48,739
Flood data services	—		18,213		—			18,213		—			22,983			—				22,983
Valuations solutions	—		73,468		—			73,468
Valuation solutions										—			77,426			—				77,426
Credit solutions	—		75,283		—			75,283		—			71,687			—				71,687
Property tax solutions	—		94,637		—			94,637		—			103,671			—				103,671
Other	13,622		12,024		(2,464		)	23,182		11,067			5,061			(3,520		)		12,608
Total operating revenue	$	180,607	$	273,625	$	(2,464	)	$	451,768	$	181,649		$	280,828		$	(3,520	)		$	458,957

For the Three Months Ended September 30, 2018
Property insights										$	125,319		$	—		$	—			$	125,319
Insurance and spatial solutions										41,666			—			—				41,666
Flood data services										—			18,213			—				18,213
Valuation solutions										—			73,468			—				73,468
Credit solutions										—			75,283			—				75,283
Property tax solutions										—			94,637			—				94,637
Other										13,622			12,024			(2,464		)		23,182
Total operating revenue										$	180,607		$	273,625		$	(2,464	)		$	451,768

For the Nine Months Ended September 30, 2019
Property insights										$	363,250		$	—		$	—			$	363,250
Insurance and spatial solutions										142,576			—			—				142,576
Flood data services										—			61,572			—				61,572
Valuation solutions										—			230,891			—				230,891
Credit solutions										—			211,187			—				211,187
Property tax solutions										—			282,724			—				282,724
Other										35,348			17,989			(9,334		)		44,003
Total operating revenue										$	541,174		$	804,363		$	(9,334	)		$	1,336,203

For the Nine Months Ended September 30, 2018
Property insights										$	376,284		$	—		$	—			$	376,284
Insurance and spatial solutions										119,691			—			—				119,691
Flood data services										—			54,098			—				54,098
Valuation solutions										—			226,368			—				226,368
Credit solutions										—			235,651			—				235,651
Property tax solutions										—			301,998			—				301,998
Other										41,054			37,155			(7,230		)		70,979
Total operating revenue										$	537,029		$	855,270		$	(7,230	)		$	1,385,069

(in thousands) For the Nine Months Ended September 30, 2018
PIRM UWS Corporate and Eliminations Consolidated
Property insights $ 376,284
$ —
$ —
$ 376,284
Insurance & spatial solutions 119,691
—
—
119,691
Flood data services —
54,098
—
54,098
Valuations solutions —
226,368
—
226,368
Credit solutions —
235,651
—
235,651
Property tax solutions —
301,998
—
301,998
Other 41,054
37,155
(7,230 ) 70,979
Total operating revenue $ 537,029
$ 855,270
$ (7,230 ) $ 1,385,069

Property Insights

Our property insights solutions combine our patented predictive analytics and proprietary and contributed data to enable our clients to improve customer acquisition and retention, detect and prevent fraud, improve mortgage transaction cycle time and cost efficiency, identify real estate trends and neighborhood characteristics, track market performance, and increase market share. Our data is comprised of real estate information with crime, site inspection, neighborhood, document images and other information from proprietary sources. We also provide verification of applicant income, identity and certain employment verification services. We typically license data in one of two forms: bulk data licensing and transactional licensing. Operating revenue for bulk data licensing contracts that provide a stand-ready obligation or include substantive updates to the intellectual property is recognized ratably over the contractual term; otherwise, operating revenue is recognized upon delivery. For transactional licensing, we recognize operating revenue based on usage.

Insurance &and Spatial Solutions

Our insurance &and spatial solutions provide originators and property and casualty insurers the solutions required to more effectively locate, assess and manage property-level assets and risks through location-based data and analytics. We also provide cloud-based property claims workflow technology for property and casualty insurers. The licensed intellectual property data is generally provided to our clients on a subscription or usage basis. For subscription contracts, operating revenue is recognized ratably over the ~~service period~~contractual term once initial delivery has occurred. For contracts to provide a license to data which is delivered via report or data file, operating revenue is recognized when the client obtains control of the products, which is upon delivery.

Property Tax Solutions

Our property tax solutions are built from aggregated property tax information from over 20,000 taxing authorities. We use this information to advise mortgage lenders and servicers of the property tax payment status of loans in their portfolio and to monitor that status over the life of the loans. If a mortgage lender or servicer requires tax payments to be impounded on behalf of its borrowers, we can also facilitate the transfer of these funds to the taxing authorities and provide the lender or servicer with payment confirmation. Property tax processing revenues are primarily comprised of periodic loan fees and life-of-loan fees. For periodic fee arrangements, we generate monthly fees at a contracted rate for as long as we service the loan. For life-of-loan fee arrangements, we charge a one-time fee when the loan is set-up in our tax servicing system. Life-of-loan fees are deferred and recognized ratably over the expected service period of 10 years and adjusted for early loan cancellation. Revenue recognition rates of loan portfolios are regularly analyzed and adjusted monthly to reflect current trends.

~~Valuations~~Valuation Solutions

Our valuation solutions represent property valuation-related data driven services and analytics combined with collateral valuation workflow technologies which assist our clients in assessing risk of loss using both traditional and alternative forms of property valuation, driving process efficiencies ~~and~~as well as ensuring compliance with lender and governmental regulations. We provide collateral information technology and solutions that automate property appraisal ordering, tracking, documentation and review for lender compliance with government regulations. Revenue for the property appraisal service is recognized when the appraisal service is performed and delivered to the client. In addition, to the extent that we provide continuous access to the hosted software platform, we recognize operating revenue over the term of the arrangement.

Credit Solutions

Our credit solutions provide credit and income verification services to the mortgage and automotive industries. We provide comprehensive information, typically in the form of a report, about credit history, income verification and home address history. We normalize the data to provide a broad range of advanced business information solutions designed to reduce risk and improve business ~~performance.~~performance to mortgage and automotive lenders. Operating revenue is recognized when the report or information is delivered to the client.

Flood Data Services

Our flood data services provide flood zone determinations primarily to mortgage lenders in accordance with ~~U.S.~~US Federal legislation passed in 1994, which requires that most lenders obtain a determination of the current flood zone status at the time each loan is originated and obtain applicable updates during the life of the loan if contracted to do so. We also provide flood zone determinations to insurance companies. We generally recognize operating revenue upon delivery of the initial determination. If contracted for life of loan monitoring, we recognize operating revenue over the estimated service ~~period.~~period, as adjusted for early loan cancellation.

Contract Costs

Incremental costs to obtain or fulfill client contracts are recognized as an asset. As of September 30, ~~2018,~~2019, we had ~~$10.5~~$9.5 million of current deferred contract costs which are presented in prepaid expenses and other current assets, ~~and $21.0~~as well as $21.4 million of long-term deferred contract costs which are presented in other assets in our condensed consolidated balance sheet. ~~These~~As of December 31, 2018, we had $9.7 million of current deferred contract costs and $20.8 million of long-term deferred contract costs. Our deferred contract costs primarily include certain set-up and acquisition costs related to property tax solutions, ~~and~~which amortize ratably over an expected ~~ten year~~10-year life, ~~and~~ adjusted for early loan cancellations. For the three months ended September 30, 2019 and 2018, we recorded amortization associated with deferred contract costs of $3.4 million and $3.8 million, respectively, and $9.8 million and $10.7 million, respectively, for the nine months ended September 30, ~~2018 we recorded $3.8 million~~2019 and ~~$10.7 million, respectively, of amortization associated with these deferred costs.~~2018.

Contract Liabilities

We record a contract liability when amounts are invoiced, which is generally prior to the satisfaction of athe performance obligation. For property tax solutions, we invoice ~~our clients~~ upfront fees to clients for services to be performed over time. For property insights and insurance &and spatial solutions we invoice quarterly and annually, commencing upon execution of the contracts or at the beginning of the license ~~term.~~term, as applicable.

As of ~~January 1, 2018,~~September 30, 2019, we had ~~$840.4~~$853.9 million in contract liabilities compared to ~~$829.2~~$833.0 million as of ~~September 30,~~December 31, 2018. The overall change of ~~$11.2~~$20.9 million in contract liability balances are primarily due to ~~$407.9~~$453.9 million of new deferred billings in the current year, partially offset by ~~$428.4~~$433.9 million of operating revenue recognized, of which ~~$269.7~~$253.6 million related to contracts previously ~~deferred.~~deferred, and other increases of $0.9 million.

Remaining Performance Obligations

The majority of our arrangements are between one and three years with a significant portion being one year or less. For the remaining population of non-cancellable and fixed arrangements greater than one year, as of September 30, ~~2018,~~2019 we had ~~$942.4~~$968.4 million of remaining performance obligations. We expect to recognize approximately ~~10%~~9% percent of ~~our~~this remaining revenue backlog in ~~2018, 30%~~2019, 31% in ~~2019,~~2020, 21% in ~~2020~~2021 and 39% thereafter. See further discussion onof performance obligations in Note 1 - Basis for Condensed Consolidated Financial Statements.

Note 79 – Share-Based Compensation

We currently issue equity awards under the CoreLogic, Inc. 2018 Performance Incentive Plan (the ~~"Plan"~~“Plan”), which was approved by our stockholders at our Annual Meeting held in May 2018. The Plan includes the ability to grant share-based instruments such as restricted stock units ~~("RSUs"~~(“RSUs”), performance-based restricted stock units ~~("PBRSUs"~~(“PBRSUs”) and stock options. Prior to the approval of the Plan, we issued share-based awards under the CoreLogic, Inc. 2011 Performance Incentive Plan, as amended, which was preceded by the CoreLogic, Inc. 2006 Incentive Plan. The Plan provides for up to 15,139,084 shares of the Company's common stock to be available for award grants.

We have primarily utilized 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~~common stock 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, ~~2018~~2019 and ~~2017~~,2018, we awarded ~~537,022~~640,339 and ~~671,568~~537,022 RSUs, respectively, with an estimated grant-date fair value of ~~$25.1~~$23.5 million and ~~$26.9~~$25.1 million, respectively. The RSU awards will vest ratably over ~~three~~3 years. RSU activity for the nine months ended September 30, ~~2018~~2019 is as follows:



	Number of Shares		Weighted-Average Grant-Date Fair Value
(in thousands, except weighted-average fair value prices)	Number of Shares		Weighted-Average Grant-Date Fair Value
Unvested RSUs outstanding at December 31, 2018	1,087		$	42.04
RSUs granted	640		$	36.67
RSUs vested	(549	)	$	40.49
RSUs forfeited	(98	)	$	39.94
Unvested RSUs outstanding at September 30, 2019	1,080		$	39.84

Number of
Weighted-Average
Grant-Date
(in thousands, except weighted-average fair value prices) Shares Fair Value
Unvested RSUs outstanding at December 31, 2017 1,309
$ 37.54
RSUs granted 537
$ 46.78
RSUs vested (672 ) $ 37.06
RSUs forfeited (52 ) $ 41.45
Unvested RSUs outstanding at September 30, 2018 1,122
$ 42.07

As of September 30, ~~2018~~2019, there was ~~$30.5~~$26.7 million of total unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period of 1.9 years. The fair value of RSUs isare 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, ~~2018~~2019 and ~~2017~~,2018, we awarded ~~408,097~~203,464 and ~~288,331~~408,097 PBRSUs, respectively, with an estimated grant-date fair value of ~~$19.2~~$7.5 million and ~~$11.5~~$19.2 million, respectively. These awards are generally subject to service-based, performance-based and market-based vesting conditions. The service and performance period for the 2019 grants is from January 2019 to December 2021 and the performance metric is adjusted earnings per share.

The performance and service period for the PBRSUs awarded during 2018 ~~grants~~ is from January 2018 to December 2020 and the performance metrics are generally adjusted earnings per ~~share. The 2018~~share and market-based conditions. These grants ~~included~~include 232,225 PBRSUs that ~~did~~do not include a market-based condition but ~~had~~have adjusted margin or operating revenue ~~or adjusted EBITDA margin~~ as the performance metric through the service period ending December ~~2020.~~2020 or December 2021.

~~The performance and service period for the PBRSUs awarded during the~~ ~~nine~~ ~~months ended~~ ~~September 30, 2017~~ ~~is from January 2017 to December 2019 and the performance metrics are adjusted earnings per share and market-based conditions.~~

The fair values of the awards containing market-based vesting conditions were estimated using Monte-Carlo simulation with the following weighted-average assumptions:



	For the Nine Months Ended September 30,
	2019		2018
Expected dividend yield	—	%	—	%
Risk-free interest rate ⁽¹⁾	2.44	%	2.38	%
Expected volatility ⁽²⁾	28.24	%	23.63	%
Average total stockholder return ⁽²⁾	17.15	%	6.11	%

(1) The risk-free interest rate for the periods within the contractual term of the PBRSUs is based on the US 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.

For the Nine Months Ended September 30,
2018 2017

Expected dividend yield — % — %
Risk-free interest rate ⁽¹⁾
2.38 % 1.47 %
Expected volatility ⁽²⁾
23.63 % 27.83 %
Average total stockholder return ⁽²⁾
6.11 % 1.46 %


~~(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.

PBRSU activity for the nine months ended September 30, ~~2018~~2019 is as follows:



	Number of Shares		Weighted-Average Grant-Date Fair Value
(in thousands, except weighted-average fair value prices)	Number of Shares		Weighted-Average Grant-Date Fair Value
Unvested PBRSUs outstanding at December 31, 2018	774		$	42.11
PBRSUs granted	203		$	36.82
PBRSUs vested	(250	)	$	34.40
PBRSUs forfeited	(106	)	$	45.36
Unvested PBRSUs outstanding at September 30, 2019	621		$	42.61

Number of
Weighted-Average
Grant-Date
(in thousands, except weighted-average fair value prices) Shares Fair Value
Unvested PBRSUs outstanding at December 31, 2017 659
$ 37.22
PBRSUs granted 408
$ 47.15
PBRSUs vested (239 ) $ 39.91
PBRSUs forfeited (43 ) $ 39.10
Unvested PBRSUs outstanding at September 30, 2018 785
$ 42.10

As of September 30, ~~2018~~2019, there was ~~$22.7~~$16.3 million of total unrecognized compensation cost related to unvested PBRSUs that is expected to be recognized over a weighted-average period of ~~2.1~~1.7 years. The fair value of PBRSUs isare 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, ~~2018~~2019 is as follows:


(in thousands, except weighted-average price)	Number of Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value		Number of Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value
Options outstanding at December 31, 2017	1,186		$	20.67
Options outstanding at December 31, 2018								570		$	20.17
Options exercised	(615	)	$	21.13				(80	)	$	24.20
Options vested, exercisable, and outstanding at September 30, 2018	571		$	20.18	3.4	$	16,706
Options vested, exercisable, and outstanding at September 30, 2019								490		$	19.51	2.6	$	13,095

As of September 30, ~~2018~~2019, there was no0 unrecognized compensation cost related to unvested stock options.

The intrinsic value of options exercised was ~~$14.3~~$1.4 million and ~~$3.3~~$14.3 million for the nine months ended September 30, ~~2018~~2019 and ~~2017~~,2018, 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~~recognize an expense for the amount equal to the estimated fair value of the discount during each offering period.

The following table sets forth the share-based compensation expense recognized for the three and nine months ended September 30, ~~2018~~2019 and ~~2017~~.2018:

The table above includes ~~$1.0~~$0.6 million and ~~$1.7~~$1.0 million of share-based compensation expense within cost of services in the accompanying condensed consolidated statements of operations for the three months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively, and ~~$4.4~~$2.0 million and ~~$4.7~~$4.4 million for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively.

Note 810 – Litigation and Regulatory Contingencies

We have been named in various lawsuits and we ~~may~~are from time to time be subject to audit or investigation by governmental ~~agencies. Currently, governmental~~ agencies ~~are auditing or investigating certain~~arising in the ordinary course of ~~our operations.~~business.

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. For matters where a settlement has been reached, we have recorded the expected amount of such settlements. With respect to audits, investigations or lawsuits that are ongoing, although their final dispositions are not yet determinable, we do not believe that the ultimate resolution of such matters, either individually or in the aggregate, will have a material adverse effect on our financial condition, results of operations or cash flows. 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.

Fair Credit Reporting Act Class Actions

In ~~February 2012, CoreLogic National Background Data,~~July 2017, Rental Property Solutions, LLC ~~(n/k/a CoreLogic Background Data, LLC ("CBD")~~(“RPS”) was named as a defendant in a putative class action styled Tyrone Henderson, et. al., v. CoreLogic National Background Data, in the U.S. District Court for the Eastern District of Virginia. Plaintiffs allege violation of the Fair Credit Reporting Act, and pled a putative class claim relating to CBD’s return of criminal record data in response to search queries initiated by its consumer reporting agency customers, which then prepare and transmit employment background screening reports to their employer customers. The parties agreed to settle the case on a class-wide basis and the settlement was approved in March 2018.

In June 2015, a companion case, Witt v. CoreLogic National Background Data, et. al. was filed in the U.S. District Court for the Eastern District of Virginia by the same attorneys as in Henderson, alleging the same claim against CBD. Witt also names as a defendant CoreLogic SafeRent, LLC (n/k/a CoreLogic Rental Property Solutions, LLC (“RPS”)) on the theory that RPS provided criminal record reports to CBD at the same time that CBD delivered reports to CBD’s consumer reporting agency customers. The parties agreed to settle the case on a class-wide basis and the settlement was approved in March 2018.

~~In July 2017, RPS was named as a defendant in a putative class action lawsuit styled~~ Claudinne Feliciano, et. al., v. CoreLogic SafeRent, LLC, a putative class action lawsuit in the ~~U.S.~~US District Court for the Southern District of New York. The named plaintiff alleges that RPS prepared a background screening report about her that contained a record of a New York Housing Court action without noting that the action had previously been dismissed. On this basis, she seeks damages under the Fair Credit Reporting Act and

the New York Fair Credit Reporting Act on behalf of herself and a class of similarly situated consumers with respect to reports issued during the period of July 2015 to the present. ~~RPS has denied~~In July 2019, the ~~claims and intends~~District Court issued an order certifying a class of approximately 2,000 consumers. We have filed a petition for review of the certification order to ~~defend~~ the ~~case vigorously.~~Second Circuit Court of Appeals. The petition is pending.

Following the Separation, we are responsible for a portion of First American Financial Corporation's ~~("FAFC"~~(“FAFC”) contingent and other corporate liabilities. In the Separation and Distribution Agreement we entered into in connection with the Separation (the ~~"Separation~~“Separation and Distribution ~~Agreement"~~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~~each 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. As of September 30, ~~2018, no~~2019, 0 reserves were considered ~~necessary.~~necessary by the applicable responsible party.

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"~~(“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.

Note 911 – Income Taxes

In December 2017, the U.S. passed the TCJA which included a reduction of the U.S. corporate income tax rate from 35.0% to 21.0%, an assessment of a one-time transition tax on certain foreign earnings that were previously tax deferred, a new provision that taxes certain income from foreign operations, a new limitation on deductible interest expense and limitations on the deductibility of certain executive compensation.

As of September 30, 2018, we have not completed our accounting for the tax effects of the TCJA. When our analysis is finalized, any resulting adjustments may materially impact our provision for income taxes and effective tax rate in the period in which the adjustments are made. We currently anticipate finalizing and recording any such adjustments and related elections by the end of 2018. For the quarter ended September 30, 2018, we have recorded a provisional estimate of the one-time transition tax under the TCJA.

The effective income tax rate for income taxes as a percentage of income from continuing operations before equity in earnings/(losses)~~/earnings~~ of affiliates and income taxes was ~~47.9%~~26.6% and ~~27.6%~~47.9% for the three months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively, and ~~26.0%~~1.4% and ~~30.0%~~26.0% for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively.

For the three months ended September 30, ~~2018,~~2019, when compared to 2017, the increase in the effective income tax rate was primarily due to the recording of a $12.5 million provisional estimate of the one-time transition tax and a prior year favorable domestic out-of-period adjustment recorded in the third quarter of 2017, partially offset by the reduction in the Federal statutory tax rate from the enactment of the TCJA.

~~For the nine months ended September 30,~~ 2018, ~~when compared to 2017,~~ the decrease in the effective income tax rate was primarily due to ~~lower Federal statutory~~a one-time charge of $12.5 million for the transition tax (in connection with the Tax Cuts and Jobs Act) which was recorded in the prior year.

For the nine months ended September 30, 2019, when compared to 2018, the decrease in the effective income tax rate ~~from~~was primarily due to a $15.3 million discrete benefit recorded during the ~~enactment~~current year for the release of ~~the TCJA, partially offset by the recording~~state tax reserves and a prior year one-time charge of a $12.5 million ~~provisional estimate of~~for the ~~one-time~~ transition tax.

We are currently under examination for the years 2010 through 2012 and 2016, by the ~~U.S.,~~US Internal Revenue Service, our primary taxing ~~jurisdiction,~~authority, and for other years by various ~~other~~ state taxing authorities. It is reasonably possible the amount of the unrecognized benefits with respect to certain unrecognized tax positions ~~that are not subject to the FAFC indemnification~~ could significantly increase or decrease within the next twelve months and ~~would~~ have an impact on our net income. Currently, ~~the Company expects~~we expect expiration of statutes of limitations, ~~excluding indemnified amounts, on reserves of $4.7 million~~ within the next twelve ~~months.~~months, for which we have tax reserves recorded of approximately $0.9 million as of September 30, 2019.

Note 1012 – Earnings Per Share

The following is a reconciliation of net income per share:



	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
(in thousands, except per share amounts)
Numerator for basic and diluted net income per share:
Net income from continuing operations	$	40,545		$	22,535		$	36,754		$	109,429
Loss from discontinued operations, net of tax	(17,362		)	(84		)	(17,456		)	(175		)
Net income	$	23,183		$	22,451		$	19,298		$	109,254
Denominator:
Weighted-average shares for basic income/(loss) per share	79,761			80,680			80,138			81,073
Dilutive effect of stock options and RSUs	1,153			1,337			1,067			1,455
Weighted-average shares for diluted income/(loss) per share	80,914			82,017			81,205			82,528
Income/(loss) per share
Basic:
Net income from continuing operations	$	0.51		$	0.28		$	0.46		$	1.35
Loss from discontinued operations, net of tax	(0.22		)	—			(0.22		)	—
Net income	$	0.29		$	0.28		$	0.24		$	1.35
Diluted:
Net income from continuing operations	$	0.50		$	0.27		$	0.45		$	1.33
Loss from discontinued operations, net of tax	(0.21		)	—			(0.21		)	—
Net income	$	0.29		$	0.27		$	0.24		$	1.33

For the Three Months Ended For the Nine Months Ended
September 30, September 30,
2018 2017 2018 2017
(in thousands, except per share amounts)
Numerator for basic and diluted net income per share:
Net income from continuing operations $ 22,535
$ 30,828
$ 109,429
$ 84,722
(Loss)/income from discontinued operations, net of tax (84 ) (74 ) (175 ) 2,421
Gain from sale of discontinued operations, net of tax —
—
—
310
Net income $ 22,451
$ 30,754
$ 109,254
$ 87,453
Denominator:

Weighted-average shares for basic income per share 80,680
83,362
81,073
84,114
Dilutive effect of stock options and restricted stock units 1,337
1,728
1,455
1,726
Weighted-average shares for diluted income per share 82,017
85,090
82,528
85,840
Income per share

Basic:

Net income from continuing operations $ 0.28
$ 0.37
$ 1.35
$ 1.01
(Loss)/income from discontinued operations, net of tax —
—
—
0.03
Gain from sale of discontinued operations, net of tax —

—
—
—
Net income $ 0.28
$ 0.37
$ 1.35
$ 1.04
Diluted:

Net income from continuing operations $ 0.27
$ 0.36
$ 1.33
$ 0.99
(Loss)/income from discontinued operations, net of tax —
—
—
0.03
Gain from sale of discontinued operations, net of tax —

—
—
—
Net income $ 0.27
$ 0.36
$ 1.33
$ 1.02

The dilutive effect of share-based compensation awards has been calculated using the treasury-stock method. For both the three months ended September 30, ~~2018~~2019 and ~~2017,~~2018, an aggregate of less than 0.1 million RSUs were excluded from the weighted-average diluted common shares outstanding ~~for both periods~~ due to their anti-dilutive effect. For both the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, an aggregate of less than 0.1 million of RSUs and PBRSUs were excluded from the weighted-average diluted common shares outstanding ~~for both periods~~ due to their anti-dilutive effect.

Note 1113 – Acquisitions

In August 2019, we completed the acquisition of National Tax Search LLC ("NTS") for $15.0 million, subject to certain working capital adjustments, and up to $7.5 million to be paid in cash by 2022, contingent upon the achievement of certain revenue targets in fiscal years 2020 and 2021 (see Note 7 - Fair Value for further details). NTS is a leading provider of ~~Financial Instruments~~commercial property tax payment services and specializes in identifying potential collateral loss related to unpaid property tax, homeowners association fee management, and inaccurate flood zone determination. The NTS acquisition increases the Company's commercial property information offerings and is expected to drive future growth in the US. NTS is included as a component of our UWS segment. 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 have preliminarily recorded client lists of $4.6 million with an estimated useful life of 10 years, proprietary technology of $3.2 million with an estimated useful life of 7 years, trademarks of $0.9 million with an estimated useful life of 7 years, non-compete agreements of $0.3 million with an estimated useful life of 5 years, contract liabilities of $1.8 million, and goodwill of $6.6 million, all of which is deductible for tax purposes.

In December 2018, we acquired the remaining 72.0% of Symbility Solutions Inc. (“Symbility”) for C$107.1 million, or approximately US $80.0 million, subject to certain working capital adjustments. Symbility is a leading global provider of cloud-based property claims workflow solutions for the property and casualty insurance industry, headquartered in Canada. This acquisition further progresses our long-term strategic plan by adding scale to our insurance and spatial businesses and international presence. Symbility is included as a component of our Property Intelligence & Risk Management (“PIRM”) segment. 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 have preliminarily recorded

~~Fair value is the price that would be received upon sale~~

proprietary technology of $14.9 million with an ~~asset or paid to transfer a liability in~~estimated useful life of 8 years, client lists of $6.4 million with an orderly transaction between market participants at the measurement date. We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about riskestimated useful life of 12 years, trademarks of $1.2 million with an estimated useful life of 4 years, $5.3 million of deferred tax liabilities, 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~~goodwill 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 active markets for similar assets and liabilities, or, quoted prices in markets that are not active.

~~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, the carrying value is a reasonable estimate of fair value due to the short-term nature of the instruments.~~

~~Restricted cash~~

~~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 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.~~

~~Swaps~~

~~The fair values of the interest rate swap agreements were estimated based on market-value quotes received from the counterparties to the agreements.~~

~~The fair values of our financial instruments as of~~ ~~September 30, 2018~~ ~~are presented in the following table:~~

Fair Value Measurements Using
(in thousands) Level 1 Level 2 Level 3 Fair Value
Financial Assets:
Cash and cash equivalents $ 97,884
$ —
$ —
$ 97,884
Restricted cash 2,271
9,154
—
11,425
Total $ 100,155
$ 9,154
$ —
$ 109,309

Financial Liabilities:
Contingent consideration $ —
$ —
$ 5,520
$ 5,520
Total debt —
1,786,397
—
1,786,397
Total $ —
$ 1,786,397
$ 5,520

$ 1,791,917

Derivatives:
Asset for Swaps $ —
$ 26,856
$ —
$ 26,856
Liability for Swaps —
522
—
522

~~The fair values of our financial instruments as of~~ ~~December 31, 2017~~ ~~are presented in the following table:~~

Fair Value Measurements Using
(in thousands) Level 1 Level 2 Level 3 Fair Value
Financial Assets:
Cash and cash equivalents $ 118,804
$ —
$ —
$ 118,804
Restricted cash —
11,065
—
11,065
Total $ 118,804
$ 11,065
$ —
$ 129,869

Financial Liabilities:
Contingent consideration $ —
$ —
$ 6,500
$ 6,500
Total debt —
1,780,547
—
1,780,547
Total $ —
$ 1,780,547
$ 6,500
$ 1,787,047

Derivatives:
Asset for Swaps $ —
$ 11,985
$ —
$ 11,985

$75.6 million. In connection with this acquisition, we remeasured our ~~2017 acquisitions,~~existing 28.0% investment ownership in Symbility which resulted in a $13.3 million step-up gain that we ~~entered into contingent consideration agreements, which we originally fair valued as $6.2 million using the Monte-Carlo simulation model. See~~ ~~Note 12 - Acquisitions~~ ~~for further discussion. The contingent payments are fair-valued quarterly and changes are~~ recorded within gain/(loss) on investments and other, net in our ~~condensed~~ consolidated statement of ~~operations.~~operations in the fourth quarter of 2018. For the ~~three and~~ nine months ended September 30, 2019, goodwill decreased by $0.2 million as a result of a change in the purchase price allocation for certain working capital adjustments.

In December 2018, we ~~increased~~completed the ~~fair value~~acquisition of Breakaway Holdings, LLC d.b.a Homevisit (“HomeVisit”) for $12.7 million, subject to certain working capital adjustments. HomeVisit is a leading provider of marketing focused real estate solutions, including property listing photography, videography, 3D modeling, drone imagery and related services. Given anticipated synergy with our pre-existing real estate solutions platforms, this acquisition is expected to enable the next generation of property marketing solutions for real estate professionals, multiple listing services (“MLSs”), brokers and agents across North America. HomeVisit is included as a component of our ~~contingent considerations~~PIRM segment. 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 have preliminarily recorded $1.4 million for non-compete agreements with an estimated useful life of 5 years, client lists of $0.9 million with an estimated useful life of 11 years, trademarks of $0.2 million with an estimated useful life of 3 years, and goodwill of $10.4 million, all of which is deductible for tax purposes. For the nine months ended September 30, 2019, goodwill increased by $0.1 million ~~and decreased by $1.0 million, respectively, and recorded~~as a result of a change in the ~~respective loss and gain in our condensed consolidated statement of operations.~~purchase price allocation for certain working capital adjustments.

~~Note 12 – Acquisitions~~

In April 2018, we completed the acquisition of a la mode technologies, LLC (“a la mode”) for $120.0 million, exclusive of working capital adjustments. a la mode is a provider of subscription-based software solutions that facilitate the aggregation of data, imagery and photographs in a government-sponsored enterprise compliant format for the completion of ~~U.S.~~US residential appraisals. This acquisition contributes to our continual development and scaling of our end-to-end valuation solutions workflow suite, which includes data and market insights, analytics as well as data-enabled services and platforms. a la mode is included as a component of our UWS reporting segment. 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 ~~have preliminarily~~ recorded contract liabilities of $7.5 million, proprietary technology of $15.8 million with an estimated useful life of 7 years, customer lists of $32.5 million with an estimated average useful life of 13 years, tradenames of $9.0 million with an estimated useful life of 8 years, non-compete agreements of $5.7 million with an estimated useful life of 5 years, and goodwill of $63.6 million, of which $61.4 million is deductible for tax purposes. ~~The business combination did not have a material impact on our condensed consolidated statements of operations.~~

In February 2018, we completed the acquisition of eTech Solutions Limited (“eTech”) for cash of approximately £15.0 million, or approximately $21.0 million, exclusive of working capital adjustments. eTech is a leading provider of innovative mobile surveying and workflow management software that enhances productivity and mitigates risk for participants in the ~~U.K.~~United Kingdom (“UK”) valuation market. This acquisition expands our ~~U.K.~~UK presence and strengthens our technology platform offerings. eTech is included as a component of our PIRM reporting segment. 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 ~~have preliminarily~~ recorded a deferred tax liability of $1.6 million, proprietary technology of $7.0 million with an estimated useful life of 5 years, customer lists of $1.7 million with an estimated average useful life of 9 years, and goodwill of $14.1 million. ~~The~~

These business ~~combination~~combinations did not have a material impact on our condensed consolidated statements of operations.

In August 2017, we completed the acquisition of Myriad Development, Inc. ("Myriad") for $22.0 million, exclusive of working capital adjustments, and up to $3.0 million to be paid in cash by 2019, contingent upon the achievement of certain revenue targets in fiscal years 2017 and 2018. We fair valued the contingent payment using the Monte-Carlo simulation model and preliminarily recorded $1.8 million as contingent consideration. The contingent payment is fair valued quarterly, and

~~changes are recorded within gain/(loss) on investments and other, net in the condensed consolidated statement of operations. See~~ ~~Note 11 - Fair Value of Financial Instruments~~ for further discussion. This acquisition builds on our software-as-a-service capabilities by offering a workflow tool used by the insurance industry for policy underwriting. Myriad is included as a component of our PIRM reporting segment. 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 have recorded a deferred tax liability of $3.1 million, customer lists of $1.7 million with an estimated average life of 12 years, tradenames of $1.6 million with an estimated average life of 7 years, proprietary technology of $5.8 million with an estimated useful life of 8 years and goodwill of $17.2 million. The business combination did not have a material impact on our condensed consolidated statements of operations.

In August 2017, we completed the acquisition of Clareity Ventures, Inc. ("Clareity") for $15.0 million, exclusive of working capital adjustments. This acquisition leverages our market leading position in real estate and provides authentication-related services to real estate brokers and agents. Clareity is included as a component of our PIRM reporting segment. 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 have recorded a deferred tax liability of $2.5 million, customer lists of $3.4 million with an estimated average life of 10 years, tradenames of $0.9 million with an estimated average life of 7 years, proprietary technology of $2.0 million with an estimated useful life of 5 years and goodwill of $11.1 million. The business combination did not have a material impact on our condensed consolidated statements of operations.

In June 2017, we acquired a 45.0% interest in Mercury for $70.0 million, which included a call option to purchase the remaining 55.0% interest within the next nine-month period. In August 2017, we purchased the remaining 55.0% ownership of Mercury for an additional $83.0 million, exclusive of working capital adjustments. Mercury is a technology company servicing small and medium-sized mortgage lenders and appraisal management companies to manage their collateral valuation operations. This acquisition is included as a component of our UWS segment. 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 a deferred tax liability of $19.8 million, tradenames of $3.6 million with an estimated life of 8 years, customer lists of $41.3 million with an estimated life of 10 years, proprietary technology of $20.1 million with an estimated life of 8 years, and goodwill of $104.8 million. During the nine months ended September 30, 2018, goodwill was reduced by approximately $0.5 million as a result of certain working capital adjustments. This business combination did not have a material impact on our condensed consolidated statements of operations.

We incurred ~~$0.2~~$0.1 million and ~~$0.9~~$0.2 million of acquisition-related costs within selling, general and administrative expenses on our condensed consolidated ~~statements~~statement of operations for the three months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively, and ~~$1.9~~$0.3 million and ~~$1.8~~$1.9 million for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively.

Note 1314 – Segment Information

We have organized into ~~two~~2 reportable segments: PIRM and UWS.

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

The operating results of our PIRM segment included intercompany revenues of ~~$1.7~~$2.7 million and ~~$1.6~~$1.7 million for the three months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively, and ~~$4.9~~$6.7 million and ~~$4.6~~$4.9 million for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively. The segment also included intercompany expenses of ~~$0.7~~$0.8 million and ~~$1.0~~$0.7 million for the three months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively, and ~~$2.3~~$2.6 million and ~~$2.5~~$2.3 million for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively.

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

The operating results of our UWS segment included intercompany revenues of ~~$0.7~~$0.8 million and ~~$1.0~~$0.7 million for the three months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively, and ~~$2.3~~$2.6 million and ~~$2.5~~$2.3 million for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively. The segment also included intercompany expenses of ~~$1.7~~$2.7 million and ~~$1.6~~$1.7 million for the three months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively, and ~~$4.9~~$6.7 million and ~~$4.6~~$4.9 million for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, 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/(losses)~~/earnings~~ of affiliates, net of tax, and interest expense.

Selected financial information by reportable segment is as follows:


(in thousands)																	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
(in thousands)
(in thousands)
PIRM																				$			181,649			$	25,015			$	23,443			$	762			$	27,197	$	12,221
UWS																	280,828					13,012			77,758				(4		)		74,803				2,319
Corporate																	—				7,690			(27,501		)		(153		)		(61,455		)		15,078
Eliminations																	(3,520		)		—			—				—				—				—
Consolidated (excluding discontinued operations)																	$	458,957			$	45,717		$	73,700			$	605			$	40,545			$	29,618

For the Three Months Ended September 30, 2018	Operating Revenues			Depreciation and Amortization		Operating Income/(Loss)			Equity in (Losses)/Earnings of Affiliates, Net of Tax			Net Income/(Loss) From Continuing Operations			Capital Expenditures
PIRM	$	180,607		$	26,176	$	22,978		$	(168	)	$	24,242		$	12,200	$	180,607			$	26,143		$	22,978			$	(168	)		$	24,242			$	12,200
UWS	273,625			16,402		61,850			(12		)	61,621			3,151		273,625				16,402			61,850				(12		)		61,621				3,151
Corporate	—			5,916		(25,048		)	19			(63,328		)	10,715		—				5,916			(25,048		)		19				(63,328		)		10,715
Eliminations	(2,464		)	—		—			—			—			—		(2,464		)		—			—				—				—				—
Consolidated (excluding discontinued operations)	$	451,768		$	48,494	$	59,780		$	(161	)	$	22,535		$	26,066	$	451,768			$	48,461		$	59,780			$	(161	)		$	22,535			$	26,066

For the Three Months Ended September 30, 2017
For the Nine Months Ended September 30, 2019
PIRM	$	180,796		$	25,489	$	13,150		$	—		$	12,733		$	12,986	$	541,174			$	77,927		$	60,821			$	720			$	57,856			$	42,124
UWS	304,977			14,615		74,180			(274		)	71,512			1,804		804,363				42,544			143,389				(12		)		140,615				12,948
Corporate	—			5,222		(25,034		)	45			(53,417		)	2,049		—				21,571			(94,716		)		(211		)		(161,717		)		37,567
Eliminations	(2,642		)	—		—			—			—			—		(9,334		)		—			—				—				—				—
Consolidated (excluding discontinued operations)	$	483,131		$	45,326	$	62,296		$	(229	)	$	30,828		$	16,839	$	1,336,203			$	142,042		$	109,494			$	497			$	36,754			$	92,639

For the Nine Months Ended September 30, 2018
PIRM	$	537,029		$	77,423	$	72,730		$	3,843		$	77,208		$	39,323	$	537,029			$	77,341		$	72,730			$	3,843			$	77,208			$	39,323
UWS	855,270			47,849		195,800			(4		)	195,243			7,850		855,270				47,849			195,800				(4		)		195,243				7,850
Corporate	—			16,758		(74,694		)	(930		)	(163,022		)	18,860		—				16,758			(74,694		)		(930		)		(163,022		)		18,860
Eliminations	(7,230		)	—		—			—			—			—		(7,230		)		—			—				—				—				—
Consolidated (excluding discontinued operations)	$	1,385,069		$	142,030	$	193,836		$	2,909		$	109,429		$	66,033	$	1,385,069			$	141,948		$	193,836			$	2,909			$	109,429			$	66,033

For the Nine Months Ended September 30, 2017
PIRM	$	522,863		$	74,481	$	60,821		$	(459	)	$	58,964		$	40,586
UWS	881,199			42,023		178,029			(1,241		)	168,177			5,640
Corporate	—			15,164		(65,595		)	468			(142,419		)	8,052
Eliminations	(7,102		)	—		—			—			—			—
Consolidated (excluding discontinued operations)	$	1,396,960		$	131,668	$	173,255		$	(1,232	)	$	84,722		$	54,278



(in thousands)
Assets	September 30, 2019			December 31, 2018
PIRM	$	1,906,138		$	1,953,732
UWS	2,170,041			2,200,292
Corporate	6,056,340			5,995,787
Eliminations	(6,000,412		)	(5,981,450		)
Consolidated (excluding discontinued operations)	$	4,132,107		$	4,168,361

(in thousands) As of As of
Assets September 30, 2018 December 31, 2017
PIRM $ 1,874,632
$ 1,911,222
UWS 2,259,869
2,151,092
Corporate 5,762,333
5,628,824
Eliminations (5,755,619 ) (5,614,108 )
Consolidated (excluding discontinued operations) $ 4,141,215
$ 4,077,030

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q and certain information incorporated herein by reference contain forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements included or incorporated by reference in this Quarterly Report, other than statements that are purely historical, are forward-looking statements. Words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “should,” “would,” “could,” “may,” and similar expressions also identify forward-looking statements. The forward-looking statements include, without limitation, statements regarding our future operations, financial condition and prospects,operating results, revenues and earnings liquidity, our estimated income tax rate, unrecognized tax positions, amortization expenses, impact of recent accounting pronouncements, our cost management program, our acquisition strategy and our growth plans, expectations regarding our recent acquisitions, share repurchases, the level of aggregate ~~U.S.~~US mortgage originations and the reasonableness of the carrying value related to specific financial assets and liabilities.

Our expectations, beliefs, objectives, intentions and strategies regarding future results are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from results contemplated by our forward-looking statements. These risks and uncertainties include, but are not limited to:

We urge you to carefully consider these risks and uncertainties and review the additional disclosures we make concerning risks and uncertainties that may materially affect the outcome of our forward-looking statements and our future business and operating results, including those made in Item 1A of Part ~~II below,~~I of our Annual Report on Form 10-K for the year ended December 31, 2018, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the ~~SEC.~~Securities and Exchange Commission. We assume no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of the filing of this Quarterly Report on Form 10-Q.

We are a leading global property information, analytics and data-enabled software platforms and services 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, property risk and replacement cost, consumer credit, tenancy, location, hazard risk and related performance information. We have more than one million ~~user~~users who rely on our data and predictive decision analytics to reduce risk, enhance transparency and improve the performance of their businesses.

We offer our clients a comprehensive national database covering real property and mortgage information, judgments and liens, building and replacement costs, parcel and geospatial data, criminal background records, eviction information, non-prime lending records, credit information, and tax information, among other data types. Our databases include over 900 million historical property transactions, over 100 million mortgage applications and property-specific data covering approximately 99% of ~~U.S.~~US residential properties, as well as commercial locations, totaling nearly 150 million records. We are also the industry's first parcel-based geocoder and have developed a proprietary parcel database covering more than ~~145~~150 million parcels across the ~~U.S.~~United States (“US”). We believe the quality of the data we offer is distinguished by our broad range of data sources and our expertise in aggregating, organizing, normalizing, processing and delivering data to our clients.

With our data as a foundation, we have built strong analytics capabilities and a variety of value-added business services to meet our clients’ needs for property tax processing, property valuation, mortgage and automotive credit reporting, tenancy screening, hazard risk, property risk and replacement cost, flood plain location determination, ~~and~~ other geospatial data analytics, and related services.

We have organized ~~our reportable segments~~ into the following two reportable segments:

Our ~~PIRM~~Property Intelligence & Risk Management (“PIRM”) segment combines property information, mortgage information, and consumer information to deliver unique housing market and property-level insights, predictive analytics and risk management capabilities. We have also developed proprietary technology and software platforms to access, automate or track this information and assist our clients with decision-making and compliance tools in the real estate industry, insurance industry and the single and multifamily industry. We deliver this information directly to our clients in a standard format over the web, through hosted software platforms or in bulk data form. Our solutions include property insights ~~and~~as well as insurance &and spatial solutions in North America, Western Europe and Asia Pacific.

Our ~~UWS~~Underwriting & Workflow Solutions (“UWS”) segment combines property information, mortgage information and consumer information to provide comprehensive mortgage origination and monitoring solutions, including underwriting-related solutions and data-enabled valuations and appraisals. We have also developed proprietary technology and software platforms to access, automate or track this information and assist our clients with vetting and on-boarding prospects, meeting compliance regulations and understanding, diagnosing and monitoring property values. Our solutions include property tax solutions, valuation solutions, credit solutions and flood services in North America.

~~RESULTS OF OPERATIONS~~

Results of Operations

Overview of Business Environment and Company Developments

Business Environment

The volume of ~~U.S.~~US mortgage loan originations serves as a key market driver for more than half of our business. We believe the volume of real estate and mortgage transactions is primarily affected by real estate prices, the availability of funds for mortgage loans, mortgage interest rates, housing supply, employment levels and the overall state of the ~~U.S.~~US economy. We believe mortgage unit volumes ~~decreased by greater than 15%~~were approximately 20% to 25% higher in the third quarter of ~~2018~~2019 relative to the same period in ~~2017,~~2018, primarily due to a continued low interest rate environment during which the 10 year US Treasury yield and mortgage interest rates significantly ~~lower mortgage~~declined. As a result, refinance volumes ~~resulting from rising interest rates~~activity has strengthened and factors which are unfavorably impacting mortgage purchase volumes. Mortgage purchase volumes are being impacted by multiple factors such as tight inventory supply, insufficient supply of new housing stock, and affordability, all of which we expect to continue for the foreseeable future. Overall, we now expect full-year ~~2018~~2019 mortgage unit volumes to be approximately ~~15% lower relative~~8% to ~~2017 levels due to the factors discussed above.~~10% higher than 2018 levels.

ended September 30, ~~2018~~2019 and ~~2017, respectively, and 32% and 39% of our operating revenues for the nine months ended September 30,~~ 2018, ~~and 2017,~~ respectively, were generated from our top ten clients, who consist of the largest ~~U.S.~~US mortgage originators and servicers. None of our clients individually accounted for greater than 10% of our operating revenues for the three months ended September 30, ~~2018~~2019 nor 2018. Approximately 30% and ~~one of our clients accounted for approximately 11% of our operating revenues for the three months ended September 30, 2017. None of our clients accounted for greater than 10%~~32% of our operating revenues for the nine months ended September 30, 2019 and 2018, ~~and two~~respectively, were generated from our top ten clients with none of our clients ~~accounted~~individually accounting for ~~approximately 12% and~~greater than 10% of our operating revenues during these periods.

While the majority of our revenues are generated in the US, continued strengthening of the US dollar versus other currencies in 2019 unfavorably impacted the translation of the financial results of our international operating revenues by $8.2 million for the nine months ended September 30, ~~2017. Both of our PIRM and UWS segments reported revenue from these customers.~~2019.

In ~~April 2018,~~August 2019, we completed the acquisition of National Tax Search, LLC (“NTS”) for $15.0 million, subject to certain working capital adjustments. NTS is included as a ~~la mode~~component of our UWS segment. See Note 13 - Acquisitions for ~~cash~~further discussion.

Business Exits & Transformation

In December 2018, we announced the intent to exit a loan origination software unit and our remaining legacy default management related platforms, as well as accelerate our appraisal management company (“AMC”) transformation program. We believe these actions will expand our overall profit margins and provide for enhanced long-term organic growth trends. In September 2019, we divested our default technology-related platforms and received proceeds of $3.8 million and expect the AMC transformation to be concluded by December 31, 2019. For the three and nine months ended September 30, 2019, we incurred lower revenues of approximately ~~$120.0 million.~~$16.0 million and $30.0 million, respectively, attributable to our business exits and strategic transformation. We ~~funded~~also recorded non-cash impairment charges of $47.8 million and severance expense of $5.4 million in 2019 relating to the ~~transaction with cash on hand and available capacity on our revolving credit facility. The acquisition is included in the UWS reporting segment. See~~ ~~Note 12 - Acquisitions~~ ~~for further discussion.~~AMC transformation program.

~~In February 2018, we completed the acquisition of eTech for cash of approximately £15.0 million, or approximately $21.0 million. The acquisition is included in the PIRM reporting segment. See~~ ~~Note 12 - Acquisitions~~ ~~for further discussion.~~

Productivity and Cost Management

In line with our on-going commitment to operational excellence and margin expansion, we are targeting a cost reduction of at least ~~$15~~$20.0 million in ~~2018.~~2019. Savings are expected to be realized through the reduction of operating costs, selling, general and administrative costs, outsourcing certain business process functions, consolidation of facilities and other operational improvements.

Unless otherwise indicated, the Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Quarterly Report on Form 10-Q relate solely to the discussion of our continuing operations.

Consolidated Results of Operations

~~Three Months Ended~~ ~~September 30, 2018~~ ~~Compared to~~ Three Months Ended September 30, ~~2017~~2019 Compared to the Three Months Ended September 30, 2018

Operating Revenues

Our consolidated operating revenues were ~~$451.8~~$459.0 million for the three months ended September 30, ~~2018~~2019, an increase of ~~$31.4~~$7.2 million, or ~~6.5%,~~1.6% when compared to ~~2017~~,the comparable period in 2018, and consisted of the following:


(in thousands, except percentages)	2018			2017			$ Change			% Change		2019			2018			$ Change			% Change
PIRM	$	180,607		$	180,796		$	(189	)	(0.1	)%	$	181,649		$	180,607		$	1,042		0.6	%
UWS	273,625			304,977			(31,352		)	(10.3	)	280,828			273,625			7,203			2.6
Corporate and eliminations	(2,464		)	(2,642		)	178			(6.7	)	(3,520		)	(2,464		)	(1,056		)	42.9
Operating revenues	$	451,768		$	483,131		$	(31,363	)	(6.5	)%	$	458,957		$	451,768		$	7,189		1.6	%

Our PIRM segment operating revenues ~~decreased~~increased by ~~$0.2~~$1.0 million, or ~~0.1%~~0.6%, for the three months ended September 30, 2019 when compared to ~~2017~~.2018. Excluding acquisition activity of ~~$4.6~~$11.1 million, operating revenues decreased ~~$4.8~~$10.1 million due to lower property insights revenues of ~~$3.6~~$5.6 million which included unfavorable foreign exchange of $2.5 million and weaker market conditions in Australia of $3.1 million. Insurance and spatial solutions revenues decreased by $1.9 million primarily due to ~~unfavorable foreign exchange translation of $2.8 million and lower mortgage~~softer market ~~unit volumes. Insurance & spatial solutions also decreased by $0.9 million due to lower weather event-related revenues and other~~demand mainly in catastrophic risk modeling. Other revenues decreased by ~~$0.3~~$2.6 million.

Our UWS segment revenues ~~decreased~~increased by ~~$31.4~~$7.2 million, or ~~10.3%~~2.6%, for the three months ended September 30, 2019 when compared to ~~2017. Excluding acquisition activity of $9.4 million, the decrease of $40.8 million was~~2018. The variance is primarily due to ~~lower~~higher mortgage market volumes and market share gains across our property tax, flood data and valuation solutions, ~~operating revenue of $28.0 million, lower property tax solutions of $8.5 million, lower credit solutions of $2.3 million and other revenues of $2.0 million, mainly driven~~partially offset by ~~lower mortgage market unit volumes and~~ the impact of ~~planned vendor diversification from key appraisal management clients.~~our business exits and transformation initiatives which lowered our revenues by approximately $16.0 million within valuation solutions and other revenues. Refer to "Business Exits & Transformation" discussion above for further details.

Our corporate and eliminations were comprised of intercompany revenue eliminations between our operating segments.

Cost of Services (excluding depreciation and amortization)

Our consolidated cost of services was ~~$230.4~~$228.2 million for the three months ended September 30, ~~2018,~~2019, a decrease of ~~$13.8~~$2.2 million, or ~~5.6%~~1.0%, when compared to ~~2017.~~2018. Excluding acquisition activity of ~~$5.9~~$6.2 million, the decrease of ~~$19.7~~$8.4 million was primarily due to lower operating revenues ~~which reduced cost of services by $27.9 million, partially offset by~~and favorable product ~~mix in our property insights, credit solutions and valuations solutions.~~mix.

Selling, General and Administrative ~~Expense~~Expenses

Our consolidated selling, general and administrative expenses ~~were $113.1~~was $111.3 million for the three months ended September 30, ~~2018,~~2019, a decrease of ~~$18.2~~$1.8 million, or ~~13.9%~~1.6%, when compared to ~~2017.~~2018. Excluding acquisition activity of ~~$4.9~~$5.4 million, the decrease of ~~$23.1~~$7.2 million was primarily ~~related~~due to lower ~~legal settlement costs~~professional fees of ~~$17.9~~$7.9 million, lower outsourced services of $4.4 million, and ~~the result~~personnel-related savings of ~~our ongoing operational efficiency programs, which lowered personnel-related expenses by $8.1 million, partially~~$1.7 million. These were offset by higher ~~external services costs for research~~productivity-related investments of $6.1 million and ~~development related investments in technology and innovation.~~higher other expenses of $0.7 million.

Depreciation and Amortization

Our consolidated depreciation and amortization expense was ~~$48.5~~$45.7 million for the three months ended September 30, ~~2018, an increase~~2019, a decrease of ~~$3.2~~$2.7 million, or ~~7.0%~~5.7%, when compared to ~~2017,~~2018. Excluding acquisition activity of $1.2 million, the decrease of $3.9 million was primarily due to ~~acquisitions.~~assets that were fully impaired during the previous quarter.

Our consolidated operating income was ~~$59.8~~$73.7 million for the three months ended September 30, ~~2018, a decrease~~2019, an increase of ~~$2.5~~$13.9 million, or ~~4.0%~~23.3%, when compared to ~~2017,~~2018, and consisted of the following:

Our PIRM segment operating income increased by ~~$9.8~~$0.5 million, or ~~74.7%~~2.0%, for the three months ended September 30, 2019 when compared to ~~2017. Acquisition activity lowered operating income by $1.0 million in 2018 primarily due to the amortization of acquisition-related intangible assets.~~2018. Excluding acquisition activity of $0.1 million operating income increased by ~~$10.8~~$0.6 million and margins increased by ~~648~~108 basis points, primarily due to ~~lower legal settlement costs~~the impact of ~~$16.4 million, partially offset lower operating revenues and product mix in property insights.~~our ongoing operational efficiency programs.

Our UWS segment operating income ~~decreased~~increased by ~~$12.3~~$15.9 million, or ~~16.6%~~25.7%, for the three months ended September 30, 2019 when compared to ~~2017.~~2018. Excluding acquisition activity of ~~$1.3~~$0.1 million, operating income ~~decreased~~increased by ~~$13.6~~$16.0 million and margins ~~decreased~~increased by ~~136~~517 basis points, primarily ~~due to lower operating revenues.~~driven by higher revenues, favorable product mix, and the impact of our ongoing operational efficiency programs.

Corporate and eliminations ~~remained consistent~~had an unfavorable variance of $2.5 million, or 9.8%, for the three months ended September 30, 2019 when compared to ~~prior year.~~2018, primarily due to higher investments in data and technology capabilities.

Total Interest Expense, net

Our consolidated total interest expense, net was ~~$19.1~~$19.5 million for the three months ended September 30, ~~2018,~~2019, an increase of ~~$2.8~~$0.4 million, or ~~17.1%~~2.2%, when compared to ~~2017.~~2018. The increase was primarily due to ~~a higher average outstanding balance and~~ higher interest ~~rates.~~rates on our interest rate swaps (“Swaps”). See Note 5 - Long-Term Debt for further discussion on the Swaps.

Gain/(Loss) on Investments and Other, net

Our consolidated gain on investments and other, net was ~~$2.8~~$0.2 million for the three months ended September 30, ~~2018, a favorable~~2019, an unfavorable variance of ~~$5.9~~$2.6 million, ~~or 191.6%,~~ when compared to ~~2017.~~2018. The ~~favorable variance was~~current period net primarily ~~due~~includes $1.3 million gain related to the sale of a ~~prior year~~non-core business unit and other gains of $0.4 million, largely offset by a loss of ~~$1.8~~$1.5 million related to ~~the Credit Agreement amendment and~~ a ~~net loss of $1.9~~non-cash impairment charge on an equity method investment. The prior year period primarily reflects $1.0 million in ~~connection with the purchase of Mercury. We also benefited from~~gains related to supplemental benefit plans as well as a ~~current year gain of~~ $1.7 million gain from the sale of a non-core ~~business-line in addition to net gains on other investments.~~business-line.

Provision for Income Taxes

Our consolidated provision for income taxes from continuing operations before equity in earnings/(losses)~~/earnings~~ of affiliates and income taxes was ~~$20.8~~$14.5 million and ~~$11.9~~$20.8 million for the three months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively. The effective tax rate was ~~47.9%~~26.6% and ~~27.6%~~47.9% for the three months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively. The ~~increase~~change in the effective income tax rate was primarily due to the ~~recording~~one-time charge of a $12.5 million ~~provisional estimate of~~for the ~~one-time~~ transition tax (in connection with the Tax Cuts and ~~a prior year favorable domestic out-of-period adjustment~~Jobs Act) which we recorded in the ~~third quarter~~prior year.

Equity in Earnings/(Losses) of ~~2017, partially offset by~~Affiliates, net of tax

Our consolidated equity in earnings of affiliates, net of tax was $0.6 million for the ~~reduction~~three months ended September 30, 2019, a favorable variance of $0.8 million when compared to 2018. We have equity interests in various affiliates which had earnings in the ~~Federal statutory~~current period compared to prior year losses causing the favorable variance.

Loss from Discontinued Operations, net of tax ~~rate~~

Our consolidated loss from discontinued operations, net of tax was $17.4 million for the ~~enactment~~three months ended September 30, 2019. This loss principally related to the impact of ~~the TCJA.~~an appellate court decision in August 2019 pertaining to a discontinued operating unit, for which we recorded a liability of $21.7 million as of September 30, 2019. See Note 1 - Basis of Condensed Consolidated Financial Statements for further information.

Nine Months Ended September 30, ~~2018~~2019 Compared to Nine Months Ended September 30, ~~2017~~2018

Our consolidated operating revenues were ~~$1.4~~$1.3 billion for the nine months ended September 30, ~~2018,~~2019, a decrease of ~~$11.9~~$48.9 million, or ~~0.9%~~3.5%, when compared to ~~2017,~~2018, and consisted of the following:

Our PIRM segment revenues increased by ~~$14.2~~$4.1 million, or ~~2.7%~~0.8%, for the nine months ended September 30, 2019 when compared to ~~2017.~~2018. Excluding acquisition activity of ~~$18.0~~$37.7 million, the decrease of ~~$3.8~~$33.6 million was primarily due to lower property insight revenues of $24.7 million as well as lower insurance &and spatial solutions revenues of ~~$1.5~~$2.6 million ~~from~~primarily due to lower ~~weather event-related revenues, the impact of~~volumes. Property insights included unfavorable foreign exchange ~~translation~~ of ~~$1.2~~$8.2 million ~~within property insights~~ and ~~lower other~~weaker market conditions in Australia, which negatively impacted revenues ~~of $1.1~~by $7.3 million. Other revenues decreased by $6.3 million.

Our UWS segment revenues decreased by ~~$25.9~~$50.9 million, or ~~2.9%~~6.0%, for the nine months ended September 30, 2019 when compared to ~~2017.~~2018. Excluding acquisition activity of ~~$32.1~~$9.4 million, the decrease of ~~$58.0~~$60.3 million was primarily due to lower valuation solutions of $64.1 million, lower flood data services of $3.0 million and lower other revenues of $2.2 million, mainly driven by lower mortgage market unit volumes and the impact of planned vendor diversification from key appraisal management clients. The decrease was offset by higher property tax solutions ~~operating revenue~~ of ~~$11.3~~$19.3 million primarily driven by ~~the~~a prior year benefit of accelerated revenue recognition ~~resulting from~~and lower credit solutions of $24.5 million primarily related to lower volumes. Additionally, our valuation solutions and other revenues reflect the ~~amendment~~impact of ~~a long-term contract.~~our business exits and transformation initiatives which lowered our segment revenues by approximately $30.0 million. Refer to "Business Exits & Transformation" discussion above for further details. The decrease was partially offset by higher flood data and valuations solutions due to increased market volumes.

Our corporate and eliminations were comprised of intercompany revenue eliminations between our operating segments.

Cost of Services (excluding depreciation and amortization)

Our consolidated cost of services was ~~$709.2~~$674.5 million for the nine months ended September 30, ~~2018,~~2019, a decrease of ~~$36.2~~$34.7 million, or 4.9%, when compared to ~~2017.~~2018. Excluding acquisition activity of ~~$18.2~~$20.8 million, the decrease of ~~$54.4~~$55.5 million was primarily due to lower operating ~~revenues, which reduced cost of services by $58.4 million, partially offset by product mix mainly in our credit solutions.~~revenues.

Selling, General and Administrative ~~Expense~~Expenses

Our consolidated selling, general and administrative expenses were ~~$340.0~~$362.3 million for the nine months ended September 30, ~~2018, a decrease~~2019, an increase of ~~$6.7~~$22.2 million, or ~~1.9%~~6.5%, when compared to ~~2017.~~2018. Excluding acquisition activity of ~~$22.3~~$20.4 million, the ~~decrease~~increase of ~~$29.0~~$1.8 million was primarily ~~related~~due to ~~lower legal settlement costs~~higher productivity-related investments of ~~$22.6~~$14.0 million, ~~and the result~~higher severance expense of ~~our ongoing operational efficiency programs, which reduced our personnel-related expenses by $19.9 million. The decrease was~~$5.5 million, higher professional fees of $2.4 million, partially offset by ~~higher external~~lower outsourced services ~~costs~~ of ~~$14.5~~$16.0 million, ~~for managed services-related initiatives~~personnel-related savings of $3.9 million, and ~~research and development related investments in technology and innovation.~~lower other expenses of $0.2 million.

Depreciation and Amortization

Our consolidated depreciation and amortization expense was $142.0 million for the nine months ended September 30, ~~2018,~~2019, an increase of ~~$10.4~~$0.1 million, or ~~7.9%~~0.1%, when compared to ~~2017,~~2018. Excluding acquisition activity of $5.6 million, the decrease of $5.5 million is primarily due to ~~acquisitions.~~assets that were fully impaired during the current year.

~~Operating Income~~

Our consolidated ~~operating income was $193.8~~impairment loss totaled $47.9 million for the nine months ended September 30, ~~2018, an increase~~2019, primarily representing write-offs of ~~$20.6~~client lists of $32.3 million, software of $12.3 million, and licenses of $3.3 million related to ongoing business transformation activities of our AMC business within our UWS segment.

Our consolidated operating income was $109.5 million for the nine months ended September 30, 2019, a decrease of $84.3 million, or ~~11.9%~~43.5%, when compared to ~~2017,~~2018, and consisted of the following:

Our PIRM segment operating income ~~increased~~decreased by $11.9 million, or ~~19.6%~~16.4%, for the nine months ended September 30, 2019 when compared to ~~2017. Acquisition activity lowered operating income by $3.9 million in 2018 primarily due to the amortization of acquisition-related intangible assets.~~2018. Excluding acquisition activity of $0.7 million, operating income ~~increased~~decreased by ~~$15.8~~$11.2 million and margins ~~increased~~decreased by ~~316~~124 basis points primarily due to lower ~~legal settlement costs of $19.1 million,~~operating revenues, partially offset by ~~lower operating revenues.~~the impact of our ongoing operational efficiency programs.

Our UWS segment operating income ~~increased~~decreased by ~~$17.8~~$52.4 million, or ~~10.0%~~26.8%, for the nine months ended September 30, 2019 when compared to ~~2017.~~2018. Excluding acquisition activity of ~~$3.5~~$1.0 million, operating income ~~increased~~decreased by ~~$14.3~~$53.4 million, ~~and margins increased~~primarily impacted by ~~319 basis points, primarily related to the~~an impairment loss of $47.9 million, lower revenues driven by a prior year benefit of accelerated revenue recognition ~~resulting from the amendment~~and higher severance charges related to ongoing business transformation activities of ~~a long-term contract in~~ our ~~property tax solutions operations~~AMC business, partially offset by ~~lower operating revenues and product mix.~~the impact of our ongoing operational efficiency programs.

Corporate and eliminations had an unfavorable variance of ~~$9.1~~$20.0 million, or ~~13.9%~~26.8%, for the nine months ended September 30, 2019 primarily due to higher investments ~~related to ongoing operating efficiency programs.~~in data and technology capabilities as well as higher severance.

Total Interest Expense, net

Our consolidated total interest expense, net was ~~$55.0~~$57.4 million for the nine months ended September 30, ~~2018,~~2019, an increase of ~~$11.0~~$2.4 million, or ~~24.9%~~4.4%, when compared to ~~2017.~~2018. The increase was primarily due to ~~a higher average outstanding balance and~~ higher interest ~~rates.~~rates on our Swaps. See Note 5 - Long-Term Debt for further discussion on the Swaps.

Gain/(Loss) on Investments and Other, net

Our consolidated ~~gain~~loss on investments and other, net was ~~$5.1~~$1.9 million for the nine months ended September 30, ~~2018, a favorable~~2019, an unfavorable variance of ~~$11.6~~$7.1 million, or ~~178.7%~~137.6%, when compared to ~~2017.~~2018. The ~~favorable~~unfavorable variance was primarily due to a ~~prior year~~ loss of ~~$6.1~~$6.6 million ~~recorded~~related to a fair value adjustment on ~~the final settlement~~an equity investment, a loss of $1.5 million related to a ~~pension plan~~non-cash impairment charge on an equity method investment, a write-off of $1.5 million of unamortized debt issuance costs due to financing activities in May 2019, and a prior year ~~loss~~gain of ~~$1.8~~$1.0 million on our contingent consideration agreements. These were partially offset by higher realized gains related to our supplemental benefit plans of $1.7 million, a current period gain of $1.3 million related to ~~the Credit Agreement amendment. We also benefited from current year gains of $1.7 million from~~ the sale of a non-core ~~business-line~~business unit, and ~~approximately $1.0~~other gains of $0.5 million.

Tax Indemnification Release

During the second quarter of 2019, we recorded a $13.4 million loss related to the release of a tax indemnification receivable due to the expiration of the statutes of limitations in ~~gains on~~ our ~~contingent consideration agreements.~~principal state jurisdictions. Associated state tax reserves of $15.3 million were also released and recognized as income tax benefit through the provision for income taxes.

Provision for Income Taxes

Our consolidated provision for income taxes from continuing operations before equity in earnings/(losses)~~/earnings~~ of affiliates and income taxes was ~~$37.4~~$0.5 million and ~~$36.8~~$37.4 million for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively. The effective tax rate was ~~26.0%~~1.4% and ~~30.0%~~26.0% for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively. The decrease in the effective income tax rate was primarily due to ~~lower Federal statutory~~a $15.3 million discrete benefit recorded during the second quarter of 2019 for the reversal of state tax ~~rate from~~reserves in addition to the ~~enactment~~one-time charge of ~~the TCJA, partially offset by the recording of a~~ $12.5 million ~~provisional estimate of~~for the ~~one-time~~ transition ~~tax.~~tax (in connection with the Tax Cuts and Jobs Act) which was recorded in the prior year.

Equity in Earnings/(Losses) of Affiliates, net of tax

Our consolidated equity in earnings of affiliates, net of tax was ~~$2.9~~$0.5 million for the nine months ended September 30, ~~2018, a favorable~~2019, an unfavorable variance of ~~$4.1~~$2.4 million, or ~~336.1%~~82.9% when compared to ~~2017. We have equity interests~~2018. The decrease was primarily related to the acquisition of Symbility in ~~various affiliates~~December 2018 which had ~~gains~~previously been an equity method investment.

Loss from Discontinued Operations, net of tax

Our consolidated loss from discontinued operations, net of tax was $17.5 million for the nine months ended September 30, 2019. This loss principally related to the impact of an appellate court decision in ~~the current period compared~~August 2019 pertaining to ~~prior year losses causing the favorable variance.~~a discontinued operating unit, for which we recorded a liability of $21.7 million as of September 30, 2019. See Note 1 - Basis of Condensed Consolidated Financial Statements for further information.

Liquidity and Capital Resources

~~LIQUIDITY AND CAPITAL RESOURCES~~

Cash and cash equivalents as of September 30, ~~2018~~2019 totaled ~~$97.9~~$88.2 million, a decrease of ~~$20.9~~$3.0 million from December 31, ~~2017.~~2018. As of September 30, ~~2018,~~2019, our cash balances held in foreign jurisdictions totaled ~~$51.6~~$41.1 million and are primarily related to our international operations. We plan to maintain significant cash balances outside of the ~~U.S.~~US for the foreseeable future.

Restricted cash of ~~$11.4~~$13.6 million as of September 30, ~~2018~~2019 and ~~$11.1~~$13.0 million as of December 31, ~~2017 is~~2018 was comprised of ~~mutual funds,~~ certificate of deposits that are pledged for various letters of credit/bank guarantees secured by us, ~~and~~ escrow accounts due to acquisitions and ~~divestitures.~~divestitures, as well as short-term investments within our deferred compensation plan trust.

Cash Flow

Operating Activities. Cash provided by operating activities reflects net income adjusted for certain non-cash items and changes in operating assets and liabilities. Total cash provided by operating activities was approximately ~~$252.3~~$247.1 million and ~~$272.3~~$252.3 million for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, respectively. The decrease in cash provided by operating activities was primarily due to ~~unfavorable~~lower net income from continuing operations, as adjusted for non-cash activities, offset by favorable changes in working capital ~~items, partially offset by higher cash generated from higher profitability, as adjusted for non-cash activities.~~items.

Investing Activities. Total cash used in investing activities was approximately ~~$202.6~~$96.9 million and $~~242.3~~202.6 million during the nine months ended September 30, ~~2018~~2019 and ~~2017~~,2018, respectively. The decrease ~~in cash provided by investing activities~~ was primarily related to lower net cash paid for acquisitions of ~~$47.4 million and current year proceeds from the sale of a business-line of $3.2~~$127.7 million partially offset by higher investments in technology and innovation of ~~$11.8~~$26.6 million.

Financing Activities. Total cash used in financing activities was approximately $147.2 million for the nine months ended September 30, 2019, which was primarily comprised of repayments of long-term debt of $1.8 billion, debt issuance costs of $9.6 million, share repurchases of $61.6 million, net outflows from share-based compensation-related transactions of $1.3 million, partially offset by proceeds from long-term debt of $1.8 billion. Total cash used in financing activities was approximately $74.6 million for the nine months ended September 30, 2018, which was primarily comprised of ~~repayments~~repayment of long-term debt of $114.6 million and share repurchases of $87.0 million, partially offset by proceeds offrom long-term debt of $120.1 million and net proceeds from share-based compensation-related transactions of $7.0 million. Total cash provided by financing activities was approximately $44.3 million for the nine months ended September 30, 2017, which was primarily comprised of proceeds from long-term debt of $2.0 billion, partially offset by repayment of long-term debt of $1.8 billion, share repurchases of $132.5 million, debt issuance costs of $14.3 million and net cash paid for share-based compensation-related transactions of $7.3 million.

Financing and Financing Capacity

Total debt outstanding, gross, was $1.7 billion and $1.8 billion, respectively, for ~~both~~the periods as of September 30, ~~2018~~2019 and December 31, ~~2017, respectively.~~2018. Our significant debt instruments and borrowing capacity are described below.

Credit Agreement

In ~~August 2017,~~May 2019, we amended and restated our credit agreement (the “Credit Agreement”). The Credit Agreement ~~which~~ provides for a $1.8 billion ~~five-year Term Facility,~~term loan facility (the “Term Facility”), and a ~~$700.0~~$750.0 million ~~five-year Revolving Facility.~~revolving credit facility (the “Revolving Facility”). The Term Facility matures and the Revolving Facility expires ~~in August 2022.~~on May 31, 2024. The Revolving Facility includes a $100.0 million multi-currency revolving sub-facility and a $50.0 million letter of credit sub-facility. The Credit Agreement also provides for the ability to increase the Term Facility ~~and/or~~and Revolving Facility by up to ~~$100.0~~$300.0 million in the aggregate; however, the lenders are not obligated to do so. As of September 30, ~~2018,~~2019, we had borrowing capacity under the Revolving Facility of ~~$580.0~~$750.0 million and were in compliance with the financial and restrictive covenants of the Credit Agreement. See Note 5 - Long-Term Debt for further discussion.

Interest Rate Swaps

We have entered into ~~Swap~~amortizing Swaps in order to convert a portion of our interest rate exposure on the Term Facility floating rate borrowings from variable to fixed. Under the Swaps, we agree to exchange floating rate for fixed rate interest payments periodically over the life of the agreement. The floating rates in our Swaps are based on the ~~one month~~one-month London interbank offering rate. The notional balances, terms, and maturities of our Swaps are designed to have at least 50% of our debt as fixed rate.

~~In the current year we entered into additional Swaps and, as~~As of September 30, ~~2018,~~2019, the Swaps have a a combined remaining notional balance of $1.3 billion, a weighted average fixed interest rate of ~~1.80%~~2.05% (rates range from 1.03% to 2.98%), and scheduled terminations through December 2025. ~~As previously indicated, notional~~Notional balances under our Swaps are scheduled to increase and decrease over their contract lengths based on our expectations of the level of variable rate debt ~~levels.~~to be in effect in future periods. Currently, we have

scheduled notional amounts of between $1.3 billion and ~~$1.5~~$1.2 billion through ~~December 2020,~~September 2021, then ~~$1.0~~$1.1 billion and ~~$1.2~~$1.0 billion through August 2022, and $416.0 million and $400.0 million thereafter until December 2025. Approximate weighted average fixed interest rates for the aforementioned time intervals are 2.39%, 2.64%, and 2.95%, respectively.

Liquidity and Capital Strategy

We expect that cash flow from operations and current unrestricted cash balances, together with available borrowings under our Revolving Facility, will be sufficient to meet operating requirements through the next twelve months. Cash available from operations, however, could be affected by any general economic downturn or any decline or adverse changes in our business such as a loss of clients, market and or competitive pressures or other significant change in business environment.

We strive to pursue a balanced approach to capital allocation and will consider the repurchase of common shares, the retirement of outstanding debt, investments and the pursuit of strategic acquisitions on an opportunistic basis.

During the ~~nine months~~quarter ended September 30, ~~2018,~~2019, we repurchased ~~1.8~~0.7 million shares of our common stock for ~~$87.0 million including commission costs.~~$32.6 million. See Unregistered Sales of Equity Securities and Use of Proceeds - Purchases of Equity Securities by the Issuer and Affiliated Purchasers for further discussion.

Availability of Additional Capital

Our access to additional capital fluctuates as market conditions change. There may be times when the private capital markets and the public debt or equity markets lack sufficient liquidity or when our securities cannot be sold at attractive prices or at all, in which case we would not be able to access capital from these sources. Based on current market conditions and our financial condition, ~~(including our ability to satisfy the conditions contained in our debt instruments that are required to be satisfied to permit us to incur additional indebtedness),~~ we believe that we have the ability to effectively access these liquidity sources for new ~~borrowings.~~borrowings if and when needed for the next twelve months. However, a weakening of our financial condition, including a significant decrease in our profitability or cash flows or a material increase in our leverage, could adversely affect our ability to access these markets and/or increase our cost of borrowings.

Critical Accounting Policies and Estimates

For additional information with respect to our critical accounting policies, which are those that could have the most significant effect on our reported results and require subjective or complex judgments by management, see Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations,” of our Annual Report on Form 10-K for the year ended December 31, ~~2017~~ ~~and~~ 2018. Management believes there have been no material changes to this information. See also Note 1 – Basis for Condensed Consolidated Financial Statements~~, which is incorporated by reference in response to this item,~~ for updates on our accounting policies over ~~revenue recognition.~~

lease accounting.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Our primary exposure to market risk relates to interest-rate risk associated with certain financial instruments. We monitor our risk associated with fluctuations in interest rates and currently use derivative financial instruments to hedge some of these risks.

WeAs of September 30, 2019, we had approximately $1.7 billion in gross, long-term debt outstanding, predominately all of which was variable-interest-rate debt. An increase in interest rates could increase the costs of our variable-interest-rate debt obligations. Rising interest rates could also limit our ability to refinance our debt when it matures or cause us to pay higher interest rates upon refinancing and increase interest expense on refinanced indebtedness.

To manage our interest rate risk we have entered into Swaps in order to convert a portion of our interest rate exposure on the Term Facility floating rate borrowings from variable to fixed. Under the Swaps, we agree to exchange floating rate for fixed rate interest payments periodically over the life of the agreement. The notional balances, terms and maturities of our Swaps are currently designed to have at least 50% of our debt as fixed rate. As of September 30, ~~2018, we had approximately $1.8 billion in gross long-term debt outstanding, predominately all of which was variable-interest-rate debt. As of September 30, 2018,~~2019, the combined remaining notional balance of the Swaps was $1.3 ~~billion.~~billion, with a weighted average fixed interest rate of 2.05% (rates range from 1.03% to 2.98%), and scheduled terminations through December 2025. Notional balances under our Swaps are scheduled to increase and decrease over their contract lengths based on our expectations of the level of variable rate debt to be in effect in future periods. A hypothetical 1% increase or decrease in interest rates ~~could~~would result in an approximately ~~$1.2~~$0.9 million change to interest expense on our existing indebtedness as of September 30, 2019 on a quarterly basis.

Although we are subject to foreign currency exchange rate risk as a result of our operations in certain foreign countries, the foreign exchange exposure related to these operations, in the aggregate, is not material to our financial condition or results of operations.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our principal executive officer and principal financial officer have concluded that, as of the end of the quarterly period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures, as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended, were effective, based on the evaluation of these controls and procedures required by Rule 13a-15(b).

Changes in Internal Control over Financial Reporting

Beginning January 1, 2018, we implemented the updated guidance on revenue recognition. In connection with the adoption of this standard, we implemented changes to our disclosure controls and procedures related to revenue recognition and the control activities within them. These included the development of new policies based on the five-step model provided in the new revenue standard, new training, ongoing contract review requirements and gathering of information provided for disclosures.

There ~~were~~has been no ~~other changes~~change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) that occurred during the ~~nine months~~quarter ended September 30, ~~2018~~2019, that ~~have~~has materially affected, or ~~are~~is reasonably likely to materially affect, our internal control over financial reporting.

PART II: OTHER INFORMATION

Item 1. Legal Proceedings.

For a description of our legal proceedings, see Note 1 - Basis for Condensed Consolidated Financial Statements andNote 810 – Litigation and Regulatory Contingencies of our condensed consolidated financial statements, which is incorporated by reference in response to this item.

Item 1A. Risk Factors.

We have described in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2017,~~2018, the primary risks related to our business, and we may periodically update those risks for material developments. Those risks are not the only ones we face, but do represent those risks that we believe are material to us. Our business is also subject to the risks that affect many other companies, such as general economic conditions, geopolitical events and employment relations. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also harm our business. Please read the cautionary notice regarding forward-looking statements under the heading “Management's Discussion and Analysis of Financial Condition and Results of Operations.” You should carefully consider the risks and uncertainties our business faces.

There have been no material changes to the Risk Factors described in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2017.~~2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Unregistered Sales of Equity Securities

During the quarter ended September 30, ~~2018,~~2019, we did not issue any unregistered shares of our common stock.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

In October ~~2016,~~2018, the Board of Directors canceled all prior repurchase authorizations and established a new share repurchase authorization of up to $500.0 million. As of September 30, ~~2018~~2019, we have ~~$123.5~~$416.4 million in value of shares of common stock (inclusive of commissions and fees) available to be repurchased under the plan. The stock repurchase authorization has no expiration date and repurchases may be made in the open market, in privately negotiated transactions or pursuant to a Rule 10b5-1 plan.

Under our Credit Agreement, our stock repurchase capacity is restricted to $150.0 million per fiscal year, with the ability to undertake an additional amount of repurchases in such fiscal year provided that, on a pro forma basis after giving effect to the stock repurchase, our total leverage ratio does not exceed 3.5 to 1.0. While we continue to preserve the capacity to

execute ~~share~~stock repurchases under our existing share repurchase authorization, going forward we will strive to pursue a balanced approach to capital allocation and will consider the repurchase of shares of our common ~~shares,~~stock, the retirement of outstanding debt and the pursuit of strategic acquisitions on an opportunistic basis.

~~The following table summarizes our repurchase activity under our Board-approved stock repurchase plan for~~During the quarter ended September 30, ~~2018:~~2019, we repurchased 0.7 million shares of our common stock in open market purchases pursuant to the terms of our stock repurchase authorization.



Issuer Purchases of Equity Securities	Issuer Purchases of Equity Securities						Issuer Purchases of Equity Securities
Period	Total Number of Shares Purchased	Average Price Paid per Share (1)		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		Total Number of Shares Purchased	Average Price Paid per Share (1)		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, 2018	109,610	$	49.08	109,610	$	141,839,251
August 1 to August 31, 2018	369,339	$	49.62	369,339	$	123,513,071
September 1 to September 30, 2018	—	$	—	—	$	123,513,071
July 1 to July 31, 2019							275,000	$	45.76	275,000	$	436,350,432
August 1 to August 31, 2019							371,073	$	46.85	371,073	$	418,965,662
September 1 to September 30, 2019							53,927	$	48.38	53,927	$	416,357,582
Total	478,949	$	49.50	478,949			700,000	$	—	700,000

(1) Calculated inclusive of commissions.

~~Item 3. Defaults upon Senior Securities.~~ ~~None.~~

~~Item 4. Mine Safety Disclosures.~~ ~~Not applicable.~~

~~Item 5. Other Information.~~ ~~Not applicable.~~

Item 6. Exhibits.

~~See Exhibit Index.~~

~~EXHIBIT INDEX~~



Exhibit Number		Description
~~2.1~~		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)^+

~~2.2~~ 3.1		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 1934ü

31.2		Certification by Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934ü

32.1		Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350ü **

32.2		Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350ü **

101		~~Extensible Business Reporting Language (XBRL)~~The following unaudited consolidated financial statements for the quarter ended September 30, 2019 included in this quarterly report on Form 10-Q formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statement of Stockholders' Equity, and (v) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and including detailed tagsü

104		Cover Page Interactive Data File (formatted in Inline XBRL and included in the interactive data files submitted as Exhibit 101)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.Filed herewith.
	**	~~Indicates a management contract or compensatory plan or arrangement in which any director or named executive officer participates.~~
	±	Confidential treatment has been requested with respect to portions of this exhibit pursuant to Rule 24b-2 of the Securities Exchange Act of 1934 and these confidential portions have been redacted from this exhibit. A complete copy of this exhibit, including the redacted terms, has been separately filed with the Securities and Exchange Commission.Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



		CoreLogic, Inc.
		(Registrant)

		By: /s/ Frank D. Martell
		Frank D. Martell
		President and Chief Executive Officer
		(Principal Executive Officer)

		By: /s/ James L. Balas
		James L. Balas
		Chief Financial Officer
		(Principal Financial Officer)

		By: /s/ John K. Stumpf
		John K. Stumpf
		Controller
		(Principal Accounting Officer)
Date:	October ~~25, 2018~~24, 2019

3944



(in thousands)	September 30, 2018		September 30, 2017
Cash and cash equivalents	$	97,884	$	149,411
Restricted cash included in other assets	10,355		13,532
Restricted cash included in prepaid expenses and other current assets	1,070		—
Total cash, cash equivalents and restricted cash	$	109,309	$	162,943



(in thousands)	December 31, 2017			Adoption Adjustments			January 1, 2018
Assets
Accounts receivable, net	$	256,595		$	(941	)	$	255,654
Prepaid expenses and other current assets	47,220			(965		)	46,255
Other assets	104,516			2,546			107,428

Liabilities
Contract liabilities, current	$	303,948		$	6,767		$	310,715
Contract liabilities, net of current	504,900			24,801			529,701
Deferred income tax liability	102,571			(7,736		)	94,835

Equity
Retained earnings	$	877,111		$	(23,183	)	$	853,928
Accumulated other comprehensive loss	(93,691		)	(9		)	(93,700		)



	September 30, 2018
(in thousands)	As Reported			Balances Without Adoption Adjustments			Effect of Change Higher/(Lower)
Assets
Accounts receivable, net	$	254,263		$	255,364		$	(1,101	)
Prepaid expenses and other current assets	53,515			53,153			362
Income tax receivable	8,984			7,985			999
Other assets	119,380			117,013			2,367

Liabilities
Accounts payable and other accrued expenses	$	157,580		$	157,908		$	(328	)
Contract liabilities, current	308,659			299,617			9,042
Contract liabilities, net of current	520,544			523,175			(2,631		)
Deferred income tax liability	109,356			110,101			(745		)

Equity
Accumulated other comprehensive loss	$	(106,613	)	$	(106,642	)	$	29
Retained earnings	962,765			965,505			(2,740		)



(in thousands)
Remainder of 2018	$	15,963
2019	62,431
2020	60,263
2021	57,557
2022	55,518
Thereafter	223,305
	$	475,037



	Number of		Weighted-Average Grant-Date
(in thousands, except weighted-average fair value prices)	Shares		Fair Value
Unvested RSUs outstanding at December 31, 2017	1,309		$	37.54
RSUs granted	537		$	46.78
RSUs vested	(672	)	$	37.06
RSUs forfeited	(52	)	$	41.45
Unvested RSUs outstanding at September 30, 2018	1,122		$	42.07



(in thousands)	As of			As of
Assets	September 30, 2018			December 31, 2017
PIRM	$	1,874,632		$	1,911,222
UWS	2,259,869			2,151,092
Corporate	5,762,333			5,628,824
Eliminations	(5,755,619		)	(5,614,108		)
Consolidated (excluding discontinued operations)	$	4,141,215		$	4,077,030