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## Year Ended December 31, 2019 Compared to Year Ended December 31, 2018 

## Operating Revenues 

Our consolidated operating revenues were $1.4 billion for the year ended December 31, 2019, an increase of $4.5 million when compared to 2018, and consisted of the following: 

<img src='content_image/1032193.jpg'>

Our PIRM segment revenues increased by $16.2 million, or 2.5%, when compared to 2018. Acquisition activity contributed $46.2 million in 2019. 

Excluding acquisition activity, the decrease of $30.0 million was primarily due to lower property insights revenues of $25.8 million as well as lower insurance and spatial solutions revenues of $4.2 million. Property insights included unfavorable foreign exchange translation of $9.8 million and weaker market conditions in Australia which negatively impacted revenues by $8.9 million. 

Our UWS segment revenues decreased by $9.2 million, or 1.2%, when compared to 2018. Acquisition activity contributed $13.2 million in 2019. 

Excluding acquisition activity, the decrease of $22.4 million was primarily due to lower valuation solutions revenues of $37.0 million due to our business exits and transformation initiatives which lowered our segment revenues by approximately $61.9 million offset by higher market volumes of $24.9 million. Further, property tax solutions was also impacted by a discrete prior year benefit of accelerated revenue recognition of approximately $23.7 million. These decreases were partially offset by higher market volumes, which increased flood data solutions revenues by $11.4 million and property tax solutions revenue by $3.2 million. 

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

## Cost of Services (exclusive of depreciation and amortization) 

Our consolidated cost of services was $632.1 million for the year ended December 31, 2019, a decrease of $30.2 million, or 4.6%, when compared to 2018. Acquisition activity contributed $26.8 million of additional cost in 2019. Excluding acquisition activity, the decrease of $56.9 million was primarily due to favorable product mix due to the impact of our AMC transformation program and business exits. 

## Selling, General and Administrative Expense 

Our consolidated selling, general and administrative expenses was $463.8 million for the year ended December 31, 2019, an increase of $35.9 million, or 8.4%, when compared to 2018. Acquisition activity contributed an increase of $23.6 million in 2019. Excluding acquisition activity, the increase of $12.3 million was primarily due to higher productivity-related investments of $16.8 million, higher severance expense of $4.9 million, and higher personnel-related costs of $8.6 million, partially offset by lower outsourced services of $12.5 million, and lower other expenses of $5.5 million. 

## Depreciation and Amortization 

Our consolidated depreciation and amortization expense was $175.1 million for the year ended December 31, 2019, a decrease of $6.0 million, or 3.3%, when compared to 2018. Excluding acquisition activity of $6.6 million, the decrease of $12.6 million is primarily due to assets that were fully impaired. 

## Impairment Loss 

Our consolidated impairment loss totaled $47.8 million for the year ended December 31, 2019, and increase of $40.1 million when compared to 2018, representing write-offs of client lists of $32.3 million, software of $12.3 million and licenses of $3.3 million related to the transformation of our AMC business in 2019, offset by impairment charges related to software of $7.7 million in 2018. 

