| Reportable Segments |
Note 13. Reportable Segments The Company has two operating divisions: Professional Services and Business Information, and three reportable segments: (1) Mortgage Default Processing Services; (2) Litigation Support Services; and (3) Business Information. The Mortgage Default Processing Services and Litigation Support Services segments are part of the Professional Services Division as these segments provide professional services supporting, primarily, attorneys and/or their clients. The Business Information segment is part of the Business Information Division. The Mortgage Default Processing Services segment generates revenue from NDeX, which provides mortgage default processing and related services to its customers. The Litigation Support Services segment generates revenue by providing discovery management and document review services through DiscoverReady and appellate services through Counsel Press, LLC. Both of these operating segments generate revenues through fee-based arrangements. The Business Information segment provides products, data and certain services through subscription-based products and a variety of media, including court and commercial newspapers, weekly business journals and the Internet. The Business Information segment generates revenues primarily from display and classified advertising (which includes events), public notices, and subscriptions and other. The Company determined its reportable segments based on the types of products sold and services performed. | The tables below reflect summarized financial information concerning the Company’s reportable segments | | for the three and six months ended June 30, 2012 and 2011 (in thousands): | | | | | | | | | | | | | | | | | | | Professional Services | | | | | | | | | Mortgage | | | | | | | | | | | | | Default | Litigation | Business | | | | | | | Processing | Support | Information | Corporate | Total | | | | | Three Months Ended June 30, 2012 | | | | | | | | | | | | Revenues | $ | 28,098 | | $ | 16,212 | | $ | 19,453 | | $ | - | | $ | 63,763 | | Direct operating expenses | | (14,891) | | | (6,752) | | | (7,284) | | | - | | | (28,927) | | Selling, general and administrative expenses | | (9,670) | | | (7,003) | | | (8,610) | | | (1,621) | | | (26,904) | | Amortization | | (2,495) | | | (1,483) | | | (980) | | | - | | | (4,958) | | Depreciation | | (720) | | | (699) | | | (428) | | | (151) | | | (1,998) | | Fair value and other adjustments on earnout liabilities | | - | | | 10,143 | | | 260 | | | - | | | 10,403 | | Equity in earnings of affiliates | | - | | | - | | | 599 | | | - | | | 599 | | Operating income (loss) | $ | 322 | | $ | 10,418 | | $ | 3,010 | | $ | (1,772) | | $ | 11,978 | | | | | | | | | | | | | | Three Months Ended June 30, 2011 | | | | | | | | | | | | | | | | Revenues | $ | 32,689 | | $ | 15,727 | | $ | 19,971 | | $ | - | | $ | 68,387 | | Direct operating expenses | | (16,584) | | | (6,352) | | | (7,789) | | | - | | | (30,725) | | Selling, general and administrative expenses | | (10,405) | | | (4,645) | | | (8,936) | | | (2,193) | | | (26,179) | | Amortization | | (2,512) | | | (715) | | | (1,099) | | | - | | | (4,326) | | Depreciation | | (889) | | | (282) | | | (446) | | | (168) | | | (1,785) | | Fair value and other adjustments on earnout liabilities | | (189) | | | - | | | 161 | | | - | | | (28) | | Equity in earnings of affiliates | | - | | | - | | | 441 | | | - | | | 441 | | Operating income (loss) | $ | 2,110 | | $ | 3,733 | | $ | 2,303 | | $ | (2,361) | | $ | 5,785 | | | | | | | | | | | | | | | | | | | Professional Services | | | | | | | | | Mortgage | | | | | | | | | | | | | Default | Litigation | Business | | | | | | | Processing | Support | Information | Corporate | Total | | | | | Six Months Ended June 30, 2012 | | | | | | | | | | | | Revenues | $ | 57,600 | | $ | 34,615 | | $ | 38,270 | | $ | - | | $ | 130,485 | | Direct operating expenses | | (30,034) | | | (15,026) | | | (14,452) | | | - | | | (59,512) | | Selling, general and administrative expenses | | (19,429) | | | (14,630) | | | (17,029) | | | (3,459) | | | (54,547) | | Amortization | | (4,990) | | | (2,966) | | | (1,973) | | | - | | | (9,929) | | Depreciation | | (1,542) | | | (1,380) | | | (857) | | | (320) | | | (4,099) | | Fair value and other adjustments on earnout liabilities | | - | | | 10,062 | | | 410 | | | - | | | 10,472 | | Equity in earnings of affiliates | | - | | | - | | | 1,024 | | | - | | | 1,024 | | Operating income (loss) | $ | 1,605 | | $ | 10,675 | | $ | 5,393 | | $ | (3,779) | | $ | 13,894 | | | | | | | | | | | | | | Six Months Ended June 30, 2011 | | | | | | | | | | | | Revenues | $ | 70,544 | | $ | 29,828 | | $ | 39,767 | | $ | - | | $ | 140,139 | | Direct operating expenses | | (34,260) | | | (12,178) | | | (15,598) | | | - | | | (62,036) | | Selling, general and administrative expenses | | (20,546) | | | (9,642) | | | (18,511) | | | (4,299) | | | (52,998) | | Amortization | | (5,024) | | | (1,428) | | | (2,363) | | | - | | | (8,815) | | Depreciation | | (1,920) | | | (513) | | | (928) | | | (340) | | | (3,701) | | Fair value and other adjustments on earnout liabilities | | (378) | | | - | | | 20 | | | - | | | (358) | | Equity in earnings of affiliates | | - | | | - | | | 1,189 | | | - | | | 1,189 | | Operating income (loss) | $ | 8,416 | | $ | 6,067 | | $ | 3,576 | | $ | (4,639) | | $ | 13,420 |
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