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Strategic Partnerships
12 Months Ended
Dec. 31, 2011
Strategic Partnerships
15. Strategic Partnerships

 

In the second quarter of 2011, the Company launched IADS as a separate reportable segment (see Note 10) to perform advanced data analysis. Synodex, one of the subsidiaries of IADS offers a range of data analysis services in the healthcare, medical and insurance areas. docGenix, another subsidiary of IADS provides software products and services that facilitate the generation and analysis of standardized and non-standardized documents for swaps, derivatives, repos, securities lending, prime brokerage, investment management and clearing.

 

Synodex is a limited liability company that is 77% owned by the Company. docGenix is a limited liability company that is 78% owned by the Company. The non-controlling interests in the Synodex and docGenix limited liabilities companies are accounted for by the cost method. The Company purchased certain assets for docGenix from a third party for $0.4 million.

 

The Company has entered into an operating agreement with the non-controlling interests in the Synodex subsidiary and into a separate operating agreement with the non-controlling interest in the docGenix subsidiary. Pursuant to these agreements, the Company has a call option to buy the interest of the non-controlling holders at determinable dates and determinable prices. Pursuant to the agreements, the non-controlling interest holders have a put option to sell their interests to the Company at determinable dates and determinable prices. In accordance with the relevant accounting literature, the non-controlling interests are presented as temporary equity in the accompanying condensed consolidated financial statements. In addition, the economic characteristics of the call and put options are similar to the host contract and thus, the put and call options are not freestanding instruments and do not qualify for separate accounting.